The pandemic has considerably transformed Britons’ attitude towards investing. According to a 2020 survey, one-third of the population owns stocks and shares, which is a significant increase compared to the previous years. Three-quarters of millennials and generation Z consider investments a priority as a direct consequence of the COVID-19 fluctuations. Reasons to invest are diverse, ranging from the fear of missing out on essential social movements to compensating for poor saving account interest rates. 

Yet, as it becomes easier to invest, more and more people worry about the negative consequences their investment strategy could have on the household budget. If you struggle with investment anxiety too, these few tips could help you manage your fears and build a sustainable source of secondary income. 

investment anxiety
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Build a realistic budget

Ultimately, you may want to build an investment portfolio, but you are unsure whether you can afford it. Therefore, it’s essential to be realistic about your finances from the start, evaluating what amount you can afford to invest. You may also require to consider where you can save money first. This step is crucial because, as profitable as a good investment p[ortfolio can be, it also drains your day-to-day budget. So, if your household is still recovering from the financial loss of the pandemic, you may want to settle the major part of your debt first before taking more money off your budget. 

Work with a professional financial advisor

Lack of knowledge is one of the most common causes of anxiety when it comes to investment strategies. The truth is: Investing can be tough and requires careful management of your assets. So, if you are not the kind who enjoys dealing with money matters, managing your trades and accounts is likely to increase stress levels. Instead, working with a financial advisor can ensure you can rely on an experienced and knowledgeable asset manager who can not only educate you but also create a custom plan for your budget and needs. So, whether they execute and monitor indices trading or recommend tax-saving strategies, a financial advisor can help you build a sustainable investment portfolio that matches your objectives. 

Understand what you want to achieve

Why do you need an investment portfolio? It is an important question to ask yourself as you reach out to an advisor. Financial advisors can provide guidance not just for investment strategies but also for a variety of monetary concerns. So, if you are seeking a side income to launch your first business, they could direct you toward options that may be more suitable such as governmental grants, business loans, and other capital funding solutions. 

Investment strategies as a way to tackle debts may also not be the best approach. A wealth manager can provide debt management strategies that can help you recover your financial balance. 

Additionally, your investment strategy may vary depending on your long- and short-term objectives. Discussing openly what you wish to achieve through an investment portfolio will provide the foundation for your unique portfolio plan. 

Investment anxiety affects more people in Britain than we expect. From lack of financial experience to fear of making mistakes, anxiety can be triggered by many issues. Yet, a realistic and honest approach under the guidance of a financial advisor can help you figure out if investing is the right thing for you. 

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