Investing: What’s Holding You Back?

If you’ve never dabbled in the world of investing, even the thought of talking about money, financial returns, and building wealth can be intimidating.

For many people, investing is a foreign concept and one that might even bring doubt and uncertainty. From an early age, we’ve been taught to “save money” whenever possible. Unfortunately, all too often, investment strategies weren’t part of the conversation.

What if there were relatively simple solutions to help us ease into the investment world? Let’s start by asking ourselves, “What’s holding me back?”

I don’t know enough about investing. 

The vast majority of us can relate to this. We didn’t study finance or economics in school. We’re not financial advisors, and we’ve never worked with one. Perhaps our parents or partners have always handled the finances, so we’re not in the trenches in our own budgets. Whatever your situation, it’s never too late to empower your inner investor by educating yourself. Start simple, do basic research. There’s a world of information available on the internet; start by mining through well-known and trusted websites. Talk to people you trust who have investment experience. Formulate a list of questions and seek answers. Consult with a professional advisor.

I can’t afford it.

There was a time in history when this might have been true — when only high-net-worth individuals could get into the investment game. This is no longer the case. There are now a variety of investment vehicles available, including crowdfunding and beginner investment websites. The entry point for investments can be as low as a few dollars!

It’s too risky… I’m scared to lose money.

Talking with a financial advisor will greatly benefit anyone new to investing. During this meeting, your trusted partner will talk with you about risk — they will assess your current financial situation including income, assets, age, and also get a feel for how much risk you are willing/want to take. It’s different for everyone, and you can set yourself up for success with the right plan based on your risk assessment. After you complete a professional risk assessment, you’ll have a much better idea of where to invest and how much money you should invest.

Investment options don’t align with my values.

Investment opportunities have changed for the better. We’re no longer limited to funds that support fossil fuels, tobacco, guns, and companies with unfair labor or trade practices. Driven by factors like sustainability and positive societal impact, mission-based investors can select ESG (Environmental, Social, Governance) impact investing — which allows everyone to put their money toward causes they care about, while still earning financial returns.

Don’t let any of these hesitations prevent you from taking the leap into the investment world! As you can see, there are options for everyone.

Meg Masten is the Chief Relationship Officer at CoPeace. As a forward-thinking holding company, CoPeace is building a portfolio of carefully selected for-profit companies with measurable social and environmental impact. To learn more about impact investing, check out CoPeace’s Intro to Impact Investing.