Investing can be intimidating, especially in the beginning. For many new investors, the word “investing” conjures up images of men in pressed suits, closely watching the ups and downs of prices of a stock. And if you’re part of a widely marginalized community, the intimidation factor can be tenfold.
We at Ally Invest believe that investing is an inclusive action, and we’re working to make the markets more accessible to all. That includes not only eliminating account minimums, but also acknowledging the fear factor that accompanies investing and helping to boost your financial confidence so you can overcome it.
Arian Simone is familiar with the fear that comes with wanting to make the right financial decisions for the future. She also knows how to conquer it. For more than a decade, the co-founder of the venture capital fund Fearless Fund and author of “The Fearless Money Mindset” has been dedicated to eliminating the hesitancy new and seasoned investors may have.
“Everyone should feel empowered to make their money work for them, even if they don’t have the most confidence in the beginning,” Arian said.
During our Become a Better Investor digital conference, Arian spoke about how to level up your financial mojo.
Check your fears.
Stock market bubbles. Social trends, fad stocks and missing out on a money-making venture. Worries about inflation. Investing fears can get the best of anyone, but listening to the fretting voice in your head can diminish your confidence — and your prospects for building generational wealth. “In life, anything you focus on expands,” says Arian. “If you put your attention on fear, it will expand.”
Being scared of debt or of living paycheck to paycheck is natural. And if you grew up in a family without generational wealth, you might think financial success is out of reach. Don’t lose faith in yourself. Instead, redirect those emotions. Put your energy toward a certainty that you will achieve abundance. “Walk in that confidence,” Arian says. “It’s available, but you have to believe it.”
Researchers have found that practicing gratitude — having a thankful appreciation for what you have and acknowledging the good you have in life — helps us be happier and more optimistic, enjoy life more fully, better deal with adversity, and lead healthier lives. Concentrate on the things you are thankful for, and they will magnify. Arian finds it helpful to document her daily feelings of gratitude in a journal. During times of adversity in her life, this spotlight on the good has empowered her beyond difficulties and boosted her towards today’s achievements.
Stay rooted in your “why.”
Women and minorities are making incredible strides in the world of finance, but we know parity is still far off. When you can’t relate to stories you hear about someone’s investing triumphs or don’t have role models that look like you, it can be difficult to stick to the tips and tricks advising you how to achieve financial freedom. From there, it’s easy to lose your North Star.
Stay on track and feel self-assured by focusing on the reason(s) you are investing. “When your ‘why’ is big enough, your motivation comes naturally,” says Arian. On the days you lose determination or are unsure about which money move to make, your “why” will help guide you. Your ambitions can be modest, but your “why” has to be large enough to keep you sustained and moving forward, Arian says.
Set your mindset to believe.
When you’re focused on giving a stellar presentation at work or hitting your fundraising goal for the neighborhood school, your outlook determines your level of success. Approach a situation with a mindset that you are going to do well, and you will do well. Doubt your abilities, and it’s more likely that you’ll fall short. The same applies to your money. “You have to go in with the mindset that you’re going to manage it and it’s going to be yours … your faith needs to be unwavering,” says Arian. Ground yourself in a steadfast belief of your own monetary achievements. “I stay focused on the goal until it manifests,” says Arian. “The world gets out of the way for people who know where they are going.”
Rising Above Barriers
Historically, stock market participation has been limited and barriers have prevented some communities, especially within people of color, from building generational wealth. Household upbringings shape our financial beliefs — some for the better, others incorrectly. Cultural norms deter us from opening up to talk about finances and feeling confident about our money. The wealth management advisory gender gap limits investing accessibility. Despite gains in some areas, these systemic and familial issues, combined with concerns about market uncertainty, continue to be roadblocks against financial success and deflate consumers’ confidence about their money.
We at Ally Invest are focused on impacting your life for the better. But we know that bringing the potential benefits of investing to a wider range of consumers only does so much if you don’t have the assurance to participate. Our community of allies is here to help you banish your fears, discover your motivation, and turn your outlook to success.
Looking for a confidence boost when it comes to money? Check out the full conversation with Arian Simone.
Lindsey Bell is Ally’s Chief Investment Strategist, responsible for shaping the company’s point of view on investing and the global markets. Lindsey has a broad background in finance, with experience on the buy-side and sell-side, in research and in investment banking and has held roles at JPMorgan, Deutsche Bank, Jefferies, and CFRA Research.
Lindsey holds a passion for teaching individuals how to become successful long-term investors. She is a contributor at CNBC, and frequently shares her insights with various publications including the Wall Street Journal, Barron’s, MarketWatch, BusinessInsider, etc. She also serves on the board of Better Investing, a non-profit organization focused on investment education.
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