Hey everyone,

If you have been putting off investing for months, or maybe even years - then you need to hear this. I totally get it, there's a lot of scary disclaimers (like the one below ahha) but I am here to be your favourite financially literate big sis to help you out.

CAPITAL AT RISK, NOT FINANCIAL ADVICE

5 Ways to Get Over the Fear:

These are some tips that really helped me get over the fear of losing money:

Think long term: no one that has invested for over 20 years has ever lost money (Schroders) panic selling during a downturn, or thinking that you've lost money already because you see your portfolio go down by 0.10%... I feel you. It can seem scary and investing is very much a psychological challenge, one that requires mental strength and long term thinking. You have to have the next few decades in mind.
"And there have been no 20-year periods in our analysis when stocks lost money in inflation-adjusted terms." Schroders *past performance isn't an indicator of future performance, returns aren't guaranteed.

'Unrealised losses' when your portfolio is red, or 'down' you haven't lost money. Your portfolio is showing negative returns but returns in the stock market are 'on paper'. They haven't been realised yet. Imagine you own a Chanel bag and you go to do a valuation, they will give you a price, but if you don't sell it there and then, the £1,200 profit (for example) wouldn't be yours yet, because you didn't take action, same goes for losses too. So remember - you haven't lost or gained anything until you sell.
You're losing money if you don't invest - now that's not fear mongering, it's an unfortunate fact. Yes, it's not like someone is robbing you of a couple thousand pounds a year, you may have save £10,000 but if it only earnt 0.01% interest over 10 years that £10,000 can now buy less, because of inflation. You may think you're choosing the safer route, but not investing can cost you too - you just can't see it.
Practice - use a demo account first to practice investing. What this does is it simulates the real thing but with zero risk. Trading 212 and eToro have practice accounts.
Educate yourself - we are afraid of what we don't know. Watch YouTube, TikToks, read books on the topic and listen to podcasts. If you are still very concerned consider speaking to a qualified financial advisor or certified financial educator for advice.

Bonus point: you could start with smaller amounts like £10. You can see how it fluctuates when the market is open. (NOT ADVICE)

So if you've been putting off investing because you're scared, I understand and have been there, but getting over that fear was the factor that helped me build a fix figure net worth by 24. If I can do it, so can you. :)

That's all from me.

Mia xx

https://linktr.ee/miamcgrath

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