MANY people delay investing because they feel they don’t know enough, are afraid of making mistakes or believe they need a large sum to begin.

The truth is you don’t need to be an expert to start investing. You just need to take the first step. Fear of investing, uncertainty based on market conditions and hesitation is cutting into your ability to build wealth and maximise growth. This also holds true for active investors; procrastination keeps you on the sidelines and you may miss opportunities.

We live in a world where time is one of our most precious resources. New investors often lack confidence, but the truth is no human was born an expert in their desired field. Shift your focus from getting it right to simply getting started. Confidence is something that grows with experience. The first step and that first small investment is the beginning of your financial journey that will grow as you gain knowledge and wealth. Over time your confidence in self and investment knowledge and acumen will increase. Adopt a growth mindset — the belief that investing skills and understanding can be developed through effort, continuous learning, and persistence.

In this modern world it is very easy to prioritise short-term comfort over long-term gains. For example, spending most of your funds on things that give instant gratification rather than saving for retirement decades away. Many people also suffer from optimism bias and take comfort in the thought that they have plenty of time to save or invest, underestimating the impact of starting late. When investing for wealth creation, long-term goals and retirement, making that first step along with the effects of compounding can be one of your best friends. Compounding is a cornerstone of successful investing that offers the ability to grow funds exponentially over time. It is a strategic approach to help achieve financial independence and long-term security.

The saying “time is money” rings true in the investment world. Yesterday’s price is not today’s price. Time in the market has been shown to be more successful than timing the market. By delaying decisions, investors risk losing out on valuable time for their investments to grow. Procrastination can lead to reducing your future financial security, making it harder to achieve major life goals. The penalty of procrastination will erode your potential returns. The longer you avoid that first step to invest the more overwhelming it may become.

To overcome your financial procrastination, be smart about your financial goals. Take the first step and don’t be afraid to start small. Celebrate your financial wins and build confidence as your knowledge increases. Remind yourself of the cost of waiting. Every day you delay is a missed opportunity for growth.

Finally, don’t be afraid to seek guidance. Enlist the help of a trusted financial advisor. They can guide you on which products can help start your financial journey of success and assist you with staying on track. Remember it is never too early to get started with investing.

Christine Rankine is Assistant Vice-President — Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm

Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at info@sterlingasset.net.jm.

Christine Rankine.