Day I: Commit to doing it, even if you’re scared
Investing is emotional. The first step in how to invest is that it’s important to admit that, sit with it, make a plan, and then do it (even if you’re scared).
Why is it emotional? Because we’re human and we’re averse to loss. There’s plenty of studies that show we will be more unhappy if we lose $100 than how happy we will be if we gain $100. And that feeling when we lose money? That hurts. So we all try to avoid it.
But here’s the thing. To live a financially secure life, you have to build wealth. Investing is how you do that. Here’s how every money journey breaks down:
- Earn an income: you need this. Without money coming in, you can’t save, invest, or you know, live.
- Save: you have to save for a rainy day. Without this you have nothing to rely on if a big expense comes up suddenly or you want to go on that awesome trip or buy that cool thing.
- Invest: this is how you turn part of that income into more money. So in the future, when that income stops, you have wealth to feel secure and keep on living stress-free.
Missing any piece of this money journey is where things feel stressful.
So we invest. And we have your back so you can start investing too.
If you’re still wary of getting started, let’s chip away at some of those feelings. If you feel comfortable with any of these things, you can invest!
- If you can follow a football game (we certainly can’t and we went to USC 🤦🏽♀️)), you can invest!
- If you can figure out a TikTok dance (@avemoves is my favorite), you can invest!
- If you can subscribe to Spotify, you can invest!
But just in case, here’s a quick list of things to get familiar with and then START. You don’t have to be an expert before you start!
- What’s the stock market? A “market” where you can buy and sell pieces (stocks) of public companies. This includes exchanges like NASDAQ, NYSE, DOW, etc…
- What’s a stock? You can imagine it being a certificate that means you own a piece of a company.
- What’s an index fund? Instead of buying a stock of 1 company like Apple, you can buy a fund that contains Apple, Tesla, Microsoft, Amazon, etc… That way you’re not risking your money on how one specific company is doing.
We hope that helps ease your mind a little. We’ll be back tomorrow with Part II of how to invest (getting ready to invest & paying yourself first)!
This is meant to be educational content only and should not be taken as investment advice. Please invest at your own discretion and risk. Please contact licensed investment or tax professionals if you are seeking advice.
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