Analysis paralysis.  It’s a term many of us have heard and when thinking about your money, it’s easy to understand why so many people are just like deer in headlights.  The options available when you’re getting started investing are so many, so confounding and confronting that it’s often easier to just do nothing.  Then you’ve got all the noise around you – friends and family telling you what to do, a bank or independent financial planner giving you advice, books, Google – the list is almost endless and it’s really confusing.  It’s not just money – I’ve met people that will analyse about 20 different models of irons before then making the decision on which one, followed by a comprehensive one month search for the right price, only to be brought down in their moment of triumph in the store when there is a potentially better option sitting right next to the one they’re about to buy – so the research starts again.

Often, people are working towards perfection.  Everything needs to be just right, all lined up and ready to go.  Often there are fears, worries about what could or could not happen.  You’re up against all of this when it comes to making an investment.  So how do you move things forward?  You could take a leaf out of Nike’s book and “just do it”, however such cavalier moves may leave you in a precarious situation.  I do think it’s a good idea to do your research and analysis on things, however only to a point. Too much of that and you’ll never get started with your investing.  Once you’ve ready up on perhaps 98% of what you can, the other 2% that you’re so desperately looking for that will finally put you at ease, that will be the missing key to make it all make perfect sense and take away any fear, does not really exist.

financial analysis paralysis

Here are a few tips to getting started with investing if you’re too nervous or not sure where to start:

  1. Try something small.  A small investment, such as shares or super might be a good start.  You’re not putting too much at risk, yet you’re still getting to experience the reality of investing
  2. Try a couple of different things.  Part of the process of becoming a great investor and having complete control over your financial future is education and one of the best ways to learn is through doing.  So, the more you do, the more you learn.
  3. If there are too many options, find an independent financial planner.  Why independent?  They’re not going to flog you a product, they’re actually going to help you make a decision.  I’m not saying don’t trust someone that isn’t and independent financial planner, however on the balance of averages, you’re going to be better off if you do go independent.
  4. DON’T just do what everyone else is doing and be VERY careful about taking advice off friends and family.

Action leads to progress – just take step after step, and bit by bit you’ll gain the knowledge, the experience and eventually the confidence to take charge of your life and make the most of it.