To build wealth as an investor, all you need is confidence. Not too much and not too little.
When it comes to investing, know that there is always uncertainty. Things could look good today, but fall apart tomorrow. Also, know that the more risk you take the higher your potential returns. In the rare case of a market crisis, the rebound and recovery produce great returns for those who stay for the ride. Recovery can take as long as two years or as little as six months like after the Covid market crisis.
People invest for various reasons. To have money to donate to charity, to start building generational wealth, to not lose value due to inflation, or to derive income from dividends. You must also have your Why.
The most popular types of investments one can make are in Index Funds, Real Estate, Individual Stocks, and most importantly Yourself.
Here are some tips to become a more confident investor.
- Just Start. The more experience you have with investing the more comfortable and confident you will get.
- Identify your Why. Why do you want to start investing? What is your end goal?
- Start Small. You don’t need a lot of money to begin investing. Your first investment can cost you less than $100 dollars. You will have a lot of options with that amount.
- Start Easy. If your workplace offers a 401k then start there. Open your workplace 401k and start investing up to the match. Remember to select your investing funds. Lean on your HR department for support when starting.
- Build your knowledge about investing via a class, a book, a coach, or researching online.
- Join a community of investors. Learn and support each other along the way.
- Buy and hold. Time is the best advantage when it comes to investing. Long-term investing produces the greatest results because of compound interest. With every downfall, there is always a big recovery that follows.
- Don’t react to the market. Have your emotions in check. It is a roller coaster and you will drive yourself crazy if you immerse yourself in it’s volatility. Do not pull out your investments if there is a crisis.
- Find a mentor (can be someone you know in real life or not)
- Be consistent. Automate monthly towards your investments.
- Say positive affirmations daily.
I love money and money loves me.
I attract money every day.
I am in control of my financial wellness
I deserve the money that I earn
My money works hard for me
Best of luck to you on your journey. I was once a very unconfident new investor. Now I can’t find enough money to invest. Seeing my money grow and securing my future is the best!