When you think of people who become rich you probably think of people who take on
large amounts of risk build massive businesses and do it all in a fearless
fashion while we usually attribute things like courage boldness and
assertiveness to the wealth building process one trait that is often
overlooked is timidity believe it or not being scared is one of the most
overlooked wealth building traits there is and when it comes to investing it's a
powerful tool to employ why is that keep watching and i'll share with you the
five ways being scared will make you a rich investor and if you're new to the
channel then hit the subscribe button below for more life-changing content
if you think about any situation where someone has seen impressive financial
prosperity what traits have said person come to mind did they demonstrate
extreme risk tolerance by investing in the latest tech startup maybe they
showed courage and vision by starting a whole new sector that they believe will
be a cornerstone of future business these are just a few of the traits that
come to mind when we think of building wealth now if i were to tell you that
being scared may be in fact one of the most useful traits that one can possess
to grow their wealth what would you say chances are that right now you see being
scared in a negative light in fact most of us grow up thinking that being scared
is a sign of weakness and immaturity why is that i know in my own experience when
i was growing up being scared was a one-way ticket to being bullied if you
were too scared to ask out that girl in class you liked or jumped when you
watched a scary movie then you could rest assured that you would be mocked
for it because of these experiences as we grow up most of us try to avoid
demonstrating any behaviors that would indicate we are scared while this way of
caring yourself is advisable in most social situations it is certainly not
ideal when investing in fact i think investing is perhaps the best outlet for
your scared tendencies to shine through but don't just take my word for it let's
now go over five reasons that being scared is gonna have you winning in the
game of investing number one investing only with money you can afford to lose
do you know the number one reason why people don't invest their money no it's
not that they lack in understanding how to invest or that they don't have the
time to set up an investing account the main reason people shy away from
investing is that they're too scared of losing their money now this is a shame
because long-term investing is arguably the only way that most people will ever
accumulate any significant wealth we'll hate to see people pass on this
opportunity by neglecting to invest there's one positive that can be drawn
from the situation and it's that these people do have a healthy respect for the
risks that are involved whenever you invest your money now in a perfect world
we would see all perpetual double-digit gains on our investments and be able to
retire in a few years time unfortunately this isn't how investing works there are
times of prosperity and times of demise and these latter times are why so many
people keep their cash stashed in the bank instead of deploying it into assets
that give them the best chances possible to see their wealth grow this is all to
say that being scared is a natural part of investing because let's face it no
one wants to lose money they have worked extremely hard to earn fortunately the
sense of scaredness can be leveraged to make you a top tier investor you see one
of the best pieces of investing advice is to invest only with money you can
afford to lose why is that the case it's sound advice because you simply move
differently when you have less attachment to the money you're investing
now i'm not saying that if you lost every last cent you invested that you'd
be totally in phase but i would argue that it would be less mentally taxing
than if you just had lost your child's college fund over a stock tip that went
bad when you invest scared and only with money you can afford to lose you no
longer need to sell out to cover an unexpected bill pan excel when there is
a minor dip in the market or stay up late at night stressed about the down
day the market just had instead when you put your money into the market you can
stand to lose you can ride out the hard times and significantly increase your
chances of future prosperity by taking a more long-term investing approach which
if you ask me is always the way to go number two doing extensive due diligence
one of the most debilitating psychological experiences many of us
face at one point and another is analysis paralysis for the uninitiated
this is when you get so wrapped up in thinking that you simply never act it's
that overthinking you do before you approach that cute girl at the bar or
the endless amount of deliberation that takes place before you decide to start
your first company generally speaking this overthinking tends to lead to
inaction which is why it is said to be something to avoid but in the context of
investing this scared nature may in fact work to your advantage as alluded to
earlier no one likes losing money smash the like button below if you hate losing
money as much as i do as such many people try and keep their money as close
to their persons as possible however when money sits idle it doesn't grow
this is a well-known fact as such it needs to be set free in the market to
multiply over time but before this can happen proper research must be done in
my own experience those who are the best investors understand the fine balance
between due diligence and action thinking and researching too much will
cause people to fall victim to an action too little research and they may as well
be throwing their money down at a blackjack table instead of investing it
into the market unfortunately this scared investor tends to lean on the
side of the former and is handsomely rewarded for their efforts this is all
to say that feeling scared when investing is going to prompt you to
spend more time researching the assets you buy with this research you could be
able to collect key data points that will indicate when you should buy hold
and sell the assets you acquire and as you know the better you get at mastering
these three the more investing success you will have before we continue on with
the video i just want to share a quick reminder that right now you can get up
to 10 free stocks worth up to 2 000 each by signing up for moomoo using the link
i've left down below in this video's description it's basically free money so
sign up while you can boss number three automating your contributions i don't
know about you but one of my fatal flaws is my unimpressive short-term memory i
can literally tell you what i wore on october 7 2002 but struggled to remember
what i had for breakfast this morning now you may be wondering why i'm
bringing up the fact that my mind is a sieve and it's because as investors a
large part of our success comes down to the habits we possess when most people
think about achieving success in investing they think it requires finding
the stocks with the most potential upside or staying abreast to the latest
news to get into a promising stock early sure these strategies will help move the
needle on your investing success however there is no more powerful investing
habit than being consistent it's for this reason that most experienced
investors preach the importance of early and regular investing when this approach
is used in conjunction with broad market investing strategies it almost certainly
guarantees future investing success now meeting your monthly investment
contributions may seem simple and it is however things that are simple are not
always easy for example losing weight is a simple process all you have to do is
eat less calories than you burn and you will lose weight however as simple as
this process is the majority of people in the western world are still massively
overweight the same notion can be tied to investing anyone can execute a trade
order but remembering to do it every week or every month for the next 40
years can present some challenges as you know life gets busy things come up and
one or two miscontributions can easily become years of neglect which as you can
imagine will severely impact your ability to accumulate well fortunately
for the most scared among us who want to avoid having to beg groceries at walmart
well into their 90s they defer this responsibility how do they do this they
use automated contributions nowadays in a few minutes you can set up an
automatic withdrawal from your bank account into your investing account they
will buy the assets you pre-select without any work on your end i've been
using this strategy for years and quite honestly it's been one of the best
financial decisions i've ever made i have yet to miss the contribution since
starting my investing journey and my portfolio balance will speak to it as it
grows larger and larger over time therefore being scared you'll fail to
stick with your investing commitments may be in fact your ticket to ultimate
financial freedom number four over contributing for retirement if there's
one thing i know about you is that at some point in your life you're going to
want to retire hell if money weren't an issue you may already want to retire
right now however the sad reality is that most people may never retire at all
given how lackluster their retirement savings efforts have been to date as of
2021 roughly 1 in 4 americans have absolutely no retirement savings at all
and many who do have far from enough to support a full-time retirement lifestyle
now i think we can all agree that having no money set aside for retirement is a
less than ideal situation to be in and for the naturally scared retirement
saver this fear of never being able to retire is their number one asset so how
do the timid among us ensure retirement success simple they over contribute
there are a lot of situations in life where going overboard will be to your
detriment if you've ever overeaten over eaten an all-you-can-eat buffet then you
know exactly what i mean by this fortunately going a bit overboard with
retirement savings will be much more of a benefit than a detriment and here's
why over-contributing gives you three distinct advantages as retirement safer
first ensures that you will have the funds available to you when you need
them later on in life second it will naturally speed up your retirement
savings process which means telling your boss you quit much sooner than you
initially anticipated finally it removes the mental weight the retirement savings
will place upon you because when you over save you'll be able to handle
life's unexpected costs and any changes in your future lifestyle that may arise
therefore when it comes to retirement being scared may just work in your favor
number five investing in stocks you understand before i were to tell you
that you had to marry someone you've never met chances are you'd be rather
scared about the whole thing why is that because getting married is a commitment
of your time your resources and your emotions and as such we like to get to
know the person we will marry before we actually go through with it well funny
enough investing requires the same commitment factors yet most people still
marry blindly skipping the research phase and buying stocks they know little
about as you'd guess investing in stocks you know nothing about is about as
likely to work out as marrying someone you've never met unfortunately
succumbing to your feelings of scaredness is likely to save you from
this unfortunate situation if you ask warren buffett he will tell you that you
should only invest in stocks you understand this is why for a long time
this investing magnate avoided investing in tech stocks like apple and still
strides away from cryptocurrency to this day fortunately scared investors tend to
end up taking buffett's advice whether they realize it or not by doing
extensive research before even a single penny leaves their coffers because they
fear losing money in a stock they know very little about therefore while you
don't overanalyze to the point where you never invest at all i think that a bit
of timidity especially when it prompts proper due diligence is a great trait to
have when investing and i'm sure uncle warren would agree hey it looks that
youtube thinks this next video is the one that will change your financial life
forever give it a watch and let's see if they're right