Are you flush with cash but hesitant to invest in the stock market? Is fear preventing you from opening a brokerage account? Here, Michael Eisenga, a successful commercial real estate investor, offers the best strategies to overcome what prevents you from investing and building wealth today.
Understand What You Are Afraid Of
Any time you are faced with fear or apprehension, the best thing to do first is to understand exactly what you are worried about. It’s not good enough to say you are concerned about losing money. Everyone is concerned about that. Look deeper to understand precisely what is making you nervous.
Are you worried about losing everything and being broke? That’s an easy one. Don’t take that much risk. In fact, don’t ever risk more than you can afford to lose, and you’ll never worry about losing everything again.
Are you concerned about appearing foolish if you lose a little money? Another easy one. Don’t tell anyone about your investments. Outside of your immediate family, it’s none of their business.
The point is that if done correctly, there is nothing to be worried about. Follow these tips and start building your financial future.
Learn the Basics
No one is born with an understanding of how the stock market works. Everyone had to learn about it, and everyone had to start at the very beginning. Fortunately, investing in the stock market is one of the most written-about topics ever. There are books and articles and videos, all designed to help you understand the basics of investing, and that’s all you need to get started.
The stock market and all the related options and choices can indeed be very confusing. But it doesn’t have to be. Open a brokerage account. A brokerage account is what you will need to buy and sell stocks, bonds, and mutual funds. It’s like a bank account to which you can transfer the money you will use to access the stock market and other investments. After you have learned the basics, start with a few small and simple investments. The more complicated aspects of investing can be mastered one-by-one at a later time.
Build a Strategy
A solid investment strategy will get you where you want to go faster than the hit-and-miss method. An investment advisor is a great partner to help you determine your goals and build a strategy. Remember, if you don’t know where you are going, you’re not likely to get there.
A little math will help you understand what it will take to achieve your financial goals. Your investment strategy will mark the path to get there. Wanting enough money to retire is not a strategy. Figuring out how much money you will need and when you will need it will help you set your goals. Putting into place the right kinds of investments to achieve your goals is your investment strategy.
Maintain the Long-term View
While there are the occasional large and immediate gains, the stock market is not a get-rich-quick scheme. Keep in mind that investments are designed to provide incremental increases over a long period. Your work-a-day job is intended to pay the mortgage; your stock portfolio is there to help you retire in style.
About Michael Eisenga
Michael Eisenga is a successful commercial real estate investor with a banking and finance background and is the former mayor of the City of Columbus. As a President of both American Lending Solutions, a mortgage lending company (he founded and operated from 2000 to 2018), and First American Properties, he has a track record of creating and operating successful businesses. Mr. Eisenga is also devoted to property development and construction, primarily serving smaller local communities. Especially in the senior housing sector.