Full Article Link: Investopedia – How To Conquer Your Fear of Investing
Quote from Stephan Shipe
“One of the best ways to overcome the fear of investing is to use dollar-cost averaging. That means committing to invest a fixed amount on a set schedule—say, the first Monday of every month—no matter what the market is doing. Even if it’s crashing that day, you stick to the plan. No excuses.”
—Stephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- Fear of Investing Is More Common Than You Think
A 2024 World Economic Forum survey revealed that 40% of individuals avoid investing due to fear of losing money. While that fear is understandable, it can also be costly—especially when inflation is steadily eroding cash savings. - Avoiding Risk Can Hurt More Than It Helps
Sitting out of the market may feel like the safer choice, but it limits your long-term financial growth. Experts like Cindy Kumar and Robert Johnson point out that fear-driven inaction often delays wealth building and increases the pressure to work harder just to stay afloat. - Low-Risk Entry Points Exist
Diversified investments such as index funds, mutual funds, and ETFs provide a comfortable entry point for beginners. They spread risk across a wide range of stocks and are ideal for those with limited capital who want growth without betting on individual companies. - Start Small With Dollar-Cost Averaging
Dr. Stephan Shipe recommends a steady, scheduled investing strategy to reduce anxiety and build confidence. Dollar-cost averaging—investing a fixed amount at regular intervals—helps create healthy investing habits and removes the emotion from timing decisions. - Time in the Market Beats Timing the Market
The key isn’t waiting for the perfect moment—it’s staying in long enough to benefit from compounding growth. As Dr. Shipe notes, fear tends to fade once investors start seeing their portfolio balances grow. - Today’s Tools Make It Easier Than Ever
With zero-commission trading and the availability of fractional shares, it’s never been easier for new investors to build a diversified portfolio—even with small amounts.