If you are like most intelligent people, there is a good chance you spend a lot of time deciding what to invest in – and end up keeping your savings in cash for longer than you’d like.
Here’s the thing, keeping your money in cash means you lose money.
Let me explain why the system is designed to keep you feeling overwhelmed, and how you can cut through and keep it simple.
The main cause of our overwhelm is choice overload. Is a 10% return good? Should you wait to invest in Bitcoin? Wait, what about real estate?!
This term was coined by psychologist Barry Shwartz who explains that having more options actually leads to anxiety, dissatisfaction and a reluctance to make any decision at all.
And that is exactly the goal. The more time you spend in choice paralysis, the more money goes towards retail banks and big businesses.
Let me explain:
When your savings are in cash:
– Your money loses value to inflation
Meanwhile:
– It is easier for you to spend money and make impulsive purchases
– The bank makes more money by investing your cash savings
The longer they can convince you that you don’t have enough information to make the right decision – the longer banks + businesses get to profit.
Here is what I recommend to get through the overwhelm:
1. Define clear goals.
Calculate how much you need to save for retirement, how much you need to have in your emergency fund – so you know exactly where you need to be.
2. Educate yourself
Take the time to understand stocks + ETFs. Investing in the stock market is not complicated, it does make people lots of money over time – and you can make money too.
3. Diversify, don’t scatter.
Make sure your investments are intentional and match the timeframe you have to invest and the risk you would like to take.
4. Set realistic expectations.
There is no one size fits all investment, and most investments will not have exceptional results. Setting realistic expectations removes the pressure of finding that one perfect investment.
5. Automate your investments.
My retirement investment has been automated for over ten years now. I don’t even think about it anymore. Having your investments automated gives you one less decision to make each month.
Look – I know we are all overwhelmed. From one busy woman to another – I promise that financial education is worth the time investment.
If you are looking for a community and a program to learn exactly how to start investing – there is one week left to join us in The Halal Investment Program – I would love to have you with us.
