There was a four-year gap between the first time I said I was going to start investing and when I actually started investing. The reason why my uptake was slow was because I never felt like I knew enough to make an informed decision about which stocks to buy and when to buy them. I was always terrified that the company would go bankrupt and I would lose all my money, or that a stock bought today would decline in value tomorrow, and I could have saved a few dollars had I waited for a better deal.
Although I am by no means an expert now, as someone who has been-there-done-that, I do have some tips about taking the leap into investing.
First, do your homework. I don’t get as anxious before I make an investment nowadays because I’ve done my homework and I’m confident about the company that I’m putting my money into.
Secondly, take emotion out of it and avoid the urge to act on every dip and spike in the market. it’s good to know what’s going on in your portfolio, but obsessing over mini market movements may cause you to make rash decisions instead of informed ones.
Third, if you’re unsure about where to begin, don’t be afraid to ask for help. I was embarrassed to ask basic questions because it felt like everyone else knew what they were doing. Once I got over my ego and started reaching out to friends and family, compiling all the different perspectives and tips helped me a lot.
Want to start investing but don’t know how to? I asked Jarrad Brown, a Fee-Based Financial Planner with Global Financial Consultants Pte Ltd, and the experts at SYFE what they thought Millennials should know before investing, and these are their top tips.