The myth
Investing typically involves looking at numbers and trying to make sense of what they mean for you and your financial goals.
You may also come across seemingly complicated financial terms, charts, and ratios when doing your research.
This may leave the impression that you need to be an expert at (or at least good with) numbers to be successful at investing.
The reality
While you’re sure to deal with numbers as an investor, you don’t need to be a math whiz to make wise decisions. Basic skills like adding, subtracting, and understanding percentages are often enough to help you navigate your options.
Forming good money habits can often be more important than having technical skills, especially if you’re investing for the long-term.
These habits include budgeting your money properly, investing consistently, staying patient, and avoiding emotional decisions like panic selling or giving into bias.
After all, the common mistakes that new or even experienced investors make are often due to a lapse in judgment or lack of emotional control.
You’ll also find free learning tools for beginners that aim to explain financial concepts in simple terms to make them easier to understand.
If you still need help, there are financial advisors that can help break down the numbers for you. Just make sure to look for reliable and authorized sources of investing knowledge.
There are investing approaches where advanced skills can come in handy, such as technical analysis. However, these methods are best left to experienced investors and those who practice fast-paced buying and selling.
If you’re after long-term growth and prefer a passive strategy, there are beginner-friendly methods like peso-cost averaging that won’t require you to be an expert in numbers.
What might matter more is discipline as well as understanding what you’re investing in and why you’re doing it.
Verdict: False.
Investing is less about crunching the numbers and more about understanding what they mean and how they may help you with your goals.
You can face your fear of numbers by starting small, building your investing knowledge over time, and keeping your long-term goals in mind.
