Personal Finance

There's something about investing that scares people out of their wits.

What do we do? We put our money under lock and key inside the safety of bank savings accounts. While that might keep it away from the volatility of stock markets and or investment meltdowns, it's not exactly the best option if you want your money to work for you.

Most regular bank accounts yield only 1% interest or less. That's pretty small, knowing you can earn so much more if you put your money somewhere else. It might involve a bit of risk, but if you know your way around the different kinds of investment vehicles, it will most definitely pay off in the long run. But first, how can you get over that fear of investing so you can move on to asking how to invest money?

Make knowledge your first investment

The more you know about something, the less afraid you are of them. That's a hard fact in Psychology. So thank the high heavens that you can read this article in the first place. Don't just waste your time watching cat and panda videos (though that's so much fun to do!).

You might not have the time to attend classes and seminars, but there is a lot of tools available online that can help you discover how much risk you're willing to take and which options are right for you, among other beginner's information about investing. Start with blogs from generous finance professionals and quick for-dummies videos; they're a dime a dozen all over the Internet.

Set some terms

Take a break from your Google searches and do a little bit of soul-searching first. In looking for where to invest money, know that some investment vehicles are best for short-term goals—they are more likely to carry a higher degree of risk, but they're also more likely to turn up a good profit for you in a short amount of time. If you just want to keep your money safe for a longer amount of time while allowing it to grow, there are options for that as well.

Create realistic goals

Now that you've figured out what your short-term and long-term goals are, get a little more specific. Or, a lot. As in, how many children do you want to have? What kind of house and where? How many cars and what kind? And, more importantly, by when? After you've answered these questions, do some quick research about how much all of this is going to cost you. If you want to have a ₱3 million condo in five years, look for a suitable investment vehicle that will allow you to save up a chunk of that within your given time frame. Now, do the same for all of your goals.

We all know that nothing's perfect, and money doesn't grow on trees. So no matter how enticing one particular option is, always remember that there are always risks and downsides to them, whatever you may choose.

The key is acceptance! But there's another key: resolve. Although many investment vehicles are quite liquid, allowing you to withdraw your money when you really need it, do your best to keep them there. Now, doesn't it feel good that your wildest dreams are within your reach after all? Replace your fear with optimism and set yourself up a happy, worry-free future!