Fear of investing? Discover the causes and how to overcome it 

Fear of investing is one of the main reasons why people who want to start this important financial habit give up.

And, unlike what some of the most experienced like to say, the fear of investing is not associated with an irresponsible or careless profile about the future.

It is important to understand that this problem may have deep roots, and only after solving them is it possible to start a financial life with possibilities for evolution.

So, that’s exactly what we’re going to talk about today. Want to join the conversation? Stay tuned!

Investing: an essential habit for financial growth

The habit of investing can change lives. And no, this is not a financial coaching talk.

The reality is that, through investment, you have the opportunity to make your money yield returns, without any effort.

This is because, through the interest on investments, depending on the amount, it is possible to obtain significant returns, which can even allow you to retire early.

For example: an investment of R$ 250 thousand, with a return of 1% per month, generates an increase in the value of R$ 2,500.00 per month. 

Understand how, with a reasonable amount, it is possible to obtain a passive income (after all, you didn't have to do anything to earn it) without spending any of your investment.

And, the higher the value and the return rates, the greater the gains, so for those who want a stable and growing financial life, investments represent an excellent path.

But why do so few people invest? We will see the answers below!  

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Fear of Investing: Why Does It Happen to You?

When talking about the advantages of investing, what many people ask themselves is: why have I never invested in this idea?

And although this questioning may seem like that initial step towards a new habit, in most cases it doesn't usually evolve.

In general, even though they know the countless benefits, most people do not invest. But why does this happen?

If you think you don't have willpower or that you are irresponsible, forget about that idea, because it has nothing to do with it.

Below we will see some of the main reasons for this lack of attitude, which will help us understand that it is something much more subtle (but important) than all of this.

Popular fallacy 

Popular fallacy is still one of the main reasons that discourages people from investing.

In general, the “pitches” involve phrases like:

• “Investing is only worth it for those who have a lot of money”
• “Save money for tomorrow? What for?”
• “When it yields it is good, but when it loses…”
• “I prefer to have my money always at hand than to trust banks.”

Understand that most concerns involve 2 main aspects: safety and high anxiety about returning.

For many, the fact that an application yields cents or a few reais per month is worth nothing, as they believe it is better to use the money.

Others think that if everything goes wrong they will be left with nothing, so it's better to keep using the safe at home, right?

But, as we saw earlier, investing is a growing habit, so you can get good values little by little.

Furthermore, banks have insurance and guarantees, so that some of the investments do not pose great risks to investors.

Therefore, avoid falling for popular fallacies, as many of them do not have a broad and up-to-date view of this market.

Fear of investing: you are afraid that you will miss the money 

Especially for those living on a tighter budget, selecting an amount and saving it for investment can be daunting.

After all, what if you need the money? Withdrawing it early can lead to losses, so it’s not a good idea.

But remember: especially when the budget is tight, investment must be made responsibly, considering what can be dispensed with.

For example: let's suppose you spend R$200.00 every month on unnecessary snacks, just out of habit. 

You probably wouldn't miss this money, so why not invest it? That way, you'll be using it for something really useful, without compromising a significant amount of your monthly budget.

So, to get rid of the fear of investing, it is crucial that you have a full understanding of your accounts, in order to know what can be dispensed with this practice.

Everything is a priority, and investment is always left for later

Those new sneakers always seem to be on sale the month you set aside the investment. So, it's better to save the investment for next month, right?

This thought can be one of the main causes of fear of investing, after all, if everything is a priority, investment ends up representing an unwanted “expense”.

We're not saying that you should stop paying your electricity bill to invest, but rather that perhaps that 5th trip to the mall of the month could have been left for later.

So, if you want to lose your fear of investing, start this plan with focus and determination. 

Since, this difficulty will only change when you are as concerned about earning R$ 30.00 with an investment as you are about saving the same R$ 30.00 on a dress on sale.

Tips for investing safely 

Now that you know the factors that make you afraid of investing, we can talk about tips to change this situation.

It is important to take it slowly, and focus on safety and comfort to start practicing and get rid of excuses to put it off.

Here are some tips:

Avoid risky operations at the beginning 

When they tell you that the biggest gains are in risky investments, they are not lying.

It is a fact that the greater the risk, the greater the return.

But for those who are still getting over their fear of investing, it is better to start in a safe zone.

Therefore, choose less risky investments, as they will certainly give you more security in the beginning.

++Low-risk investments: what are the best options? – I appreciated it.

Look for applications with guarantees 

Some of the investments are insured or guaranteed by the Central Bank.

This means that, in the event of a loss due to the bankruptcy of the financial institution, your investment will be covered.

In general, these guaranteed applications are in specific modalities and values.

Therefore, consult in advance.

Beware of fake investment advisors 

Fake investment consultants are those who promise you absurd results in a short period of time.

Most of the time, what they really want is to earn back part of their investment amount.

The big problem is when this is done in a risky, irresponsible way and with a focus only on the professional's gain.

Therefore, if you want help, look for serious and honest consultants.

This way, the fear of investing will be gone, making it much easier to achieve financial growth! 

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