The fear of financial loss and taking unsound monetary decisions is probably at the root of this anxiety. Some of us are too overwhelmed with different options and end up getting confused. Regardless, we also know that prudent savings and timely investments in diversified instruments will go a long way in cushioning our lives and helping us achieve financial goals.

Here are some ways you can slay investment anxiety and fears:

Knowledge is power

It is essential to educate and empower yourself with knowledge and facts about investing and managing finances. There is a wealth of information available online, in specialized publications, and through a host of workshops and seminars that can be attended online or in-person.

Whatever model works for you, set aside regular time on a daily or weekly basis to gain knowledge about the world of finance. Knowledge will empower you to understand the nuances and make better decisions. The more information you have about financial management, the lesser anxiety you’ll have in dealing with money.

Identify your investment goals.

What do you want your investments to do for you? What are the significant expenses you see coming up in the short, medium, or long term?

For example, you may want to save for your children's college education as a long-term goal. Or fund a second home or car in the medium term. It is worthwhile to sit down and list all these goals. This will give you a clear direction of where you see your funds employed.

This clarity will help you filter out investment options that are not suitable for you and reduce anxiety since there are lesser options to evaluate.

Start small

It is better for those who feel overwhelmed and daunted by investment options to take baby steps and start small. Be an aware investor, even as you tread slowly.

In time you will understand your risk appetite and tolerance. You may start by investing smaller amounts regularly till you define and outline your strategy and overcome your apprehensions. Slowly gain confidence to manage larger chunks of your portfolio. As Lao Tzu says, “a journey of a thousand miles begins with a single step.”

The power of compounding

If you understand the power of compounding, you will realize that little by little, one can build sizeable wealth. Compounding is the provision to reinvest earnings generated from assets to reap further profits.

If you're faced with fears about investment, start small, so the fear of loss is curtailed. But, make sure to harness the power of compounding by saving consistently, no matter what. Read up more about compounding and why it's called the eighth wonder of the world!

Seek expert help

It could help to rely on trustworthy experts and financial planners when you're just getting started. However, be wary of scam-my advisors promoting quick-rich schemes.

Ultimately, you wield control over your finances. But it is always worth it to sign up for reputed financial advisory services where portfolio managers give you advice that is tailored to your unique requirements and circumstances.

Develop a strategy

Based on the knowledge you gain from consulting with an expert, formulate your own strategy for your investments. This may take time and may need to be tweaked as you grow as an investor.

However, if you have a clear plan based on sound principles such as diversification, proper asset allocation, you will soon overcome the fear of investing. You can then take calculated risks with the clarity of the big picture in your mind.

Paison ki Seedhi Baat

It is understandable to be apprehensive and fearful of investing, but everyone must start somewhere.

Use these strategies to make an informed choice and slay your fear of investing because not taking any risk with your money is also a huge risk. Download the My Money App and start taking small steps towards your big dreams.