Money can generate immense amounts of anxiety. We all depend on money to live. Food, shelter, electricity nothing is free. All of us, by whatever means generate income. Income is the basis by which you can obtain items you need to live and the luxuries that improve your quality of life. If you are like me, you are affected by moderate amounts of anxiety. You are functioning, likely have a full-time job and thus have to deal with all the regular poop that comes with life.
If you live in the states or in any other western culture, there is a large emphasis placed on retirement and saving. Putting your money in a bank account and collecting interest is no longer enough as bank interest is extremely low. If you are at a point in your life where you have enough income to invest, for whatever reason, it can be overwhelming and daunting.
Here are 5 easy tips that will help you.
- Have the money automatically drawn from your pay or your bank account: This eliminates the stress of you must transfer it yourself. Many employer plans will do this for you, and in many cases, it will be pre-tax money, lowering your tax burden.
- Determine what the money is for: Is this for income generation? Is this for retirement? For a new car? Decide what this money is going to be used for BEFORE you start investing.
- Where to invest, Large Cap Growth funds: I know your eyes are glazing over… These types of funds are normally comprised of strong companies that generate revenue and are considered very well capitalized. Companies like Apple, Boeing, Microsoft. These companies aren’t going to fold up over night if there are bumps in the economy.
- Time: Most investment vehicles have a return average over time. You can get this measure over 5years, 10 years etc. Look at mutual funds that have a 10-20-year track record. What was their rate of return? A 20-year avg return is a great measure because it accounts for ups and downs in the market.
- Trust yourself: There is no “trick” to investing. Consistent investment over years generates good returns. Don’t look for short cuts, you will regret it.
Money can equal stress, but it doesn’t have to. Remember the story of the tortoise and the hare? Slow and steady wins the race. If you stick with a long-term consistent plan you will be a successful investor. Once every 3-6 months check your investments make sure they make sense. If you have an employer with a retirement plan, sit down with HR and ask your questions. This will help with your anxiety, and that’s their job.
Remember you have anxiety, this won’t be simple, you will worry, you will react, you will make mistakes. However, you can do this, and someday with a lot of persistence and patience you will have accumulated a nice chunk of change!