It’s too risky. You need to be rich. You need to monitor it daily. You need to be an expert. You need to know when the right time is to buy. It’s fair to say that investing has an image problem, and 2023 might be a good year for you to look beyond the stereotypes.

We held a Twitter space and got an expert to address some investment myths and stereotypes, including how to invest right and why we should invest differently this year.

Here are some of the key takeaways from the session that you can apply this year:
• You don’t have to be an expert to invest but you must seek professional advice and financial guidance: Investment advice is any form of professional guidance that informs you on financial matters or products. It shouldn’t be given — or taken — lightly. It’s also not ‘one size fits all’ because if a single piece of information were the best fit for everyone, we’d all be Warren Buffett by now. Good investment advice can save you time and money in the long run. Some of the best places to find it are;

1. Free resources: You might not be able to get free personalized investment advice, but you can get free financial advice from educational content that most financial firms offer.
2. Online financial planning services: You might prefer the expertise of a human advisor but it comes with a price tag. An online human advisor will manage your investments and help with complicated plans like holistic financial planning, estate planning, etc.
3. Traditional financial advisors: You might also prefer to meet face to face with your financial advisor. You might want to build a deeper relationship with them as they will be handling your money so ensure you find one with the credentials that suit your needs.

• You don’t need to know when the time is right to buy but you must give yourself time to learn how the investment market works: Predicting the outcomes of the market is practically impossible. Even professionals find it difficult and challenging to successfully predict the market. The saying that you need to buy when stocks are low and sell when they’re high is a wrong perception. There are so many factors that influence the stock market, so do not spend all your time and energy trying to identify when a share price will bottom or peak. Instead, give your time and energy to learning how the investment market works. Again, if you’re not sure what’s right for you, please seek advice from a professional.
• You don’t have to be rich to invest but you must be intentional when you make the decision to start investing; with a clear goal and proper research: The sooner you start, the better. For example, if you invested $10,000 and earned a 6% average annual return on your investment, you’d have over $18,000 after 10 years. Give the same amount 30 years to grow and you’d have over $60,000 instead. Ask yourself how long you’re prepared to invest for. The longer your timeframe, the more volatility you may be able to deal with because you’d have more time to recover from any lows.

During our Twitter Session our expert gave this example; if you’re 5 years from retirement, you may want to select a cautious investment. If you have 10 years or more to play with, you may be able to be more adventurous. Start as soon as you can and invest for as long as you can. Investing might not make you an overnight millionaire but it allows your money to grow instead of sitting idle. Experts also recommend that those who are new to investing can start with mutual funds. Buying into a fund is like putting your eggs in many baskets. They are less risky and spreading your investments across funds aka diversification reduces the risk compared to buying individual shares in a company.

In conclusion, there are risks and gains, bottoms, and peaks with investing. However, to succeed with it, you must set clear goals, learn the rudimentary ropes of investing, seek financial guidance, pay attention to the trends, the news, and very importantly do not get carried away by the numbers.