10 Tips To Help You Start Investing

A whopping 93 percent of millennials are wary of investing, according to a Capital One ShareBuilder survey released to CNN Money.

The reasons vary — from a distrust of markets to a lack of investing knowledge — but the sentiment has real effects on 20-somethings’ investing behaviors. For example, less than 50 percent of 21-30 year-olds are saving for retirement, according to Money Under 30’s 2015 Millennial Money Survey.

The reasons to be intimidated by investing are real: the recession of 2008/2009 is a relatively fresh memory, the world of investing is overwhelming, you don’t have a lot of money to get started, and the world is anything but certain.

Although all investing carries risks, the risks of not investing may be far greater.

If you know you should invest but are struggling with the first steps, here are ten tips to help you start investing with confidence.

1. Just do it

The longer money remains invested, the more potential it has to compound and grow. So get started, then get it right later.

“Investors who start early, practice patience, and stick to a long-term investing strategy often see the best returns and financial success,” says Colton Dillion, Chief Innovation Officer at Acorns, an app that lets you start investing with as little as $5.

2. Learn the lay of the land, but you don’t have to become an expert

Annuities? Exchange-traded funds? Alternative mutual funds? Commodities investing? Don’t worry if you haven’t a clue what any of those terms mean, let alone the options within each category.

Money Under 30’s investing archives or other investing education sites can give you an overview without drowning you in details. At the same time, don’t be afraid to strike up conversations with friends and family about how they invest. You may learn a thing or two, but just be careful of…

3. Investing fads: Steer clear

Stories of investors who get rich quick can inspire a goose chase to replicate those same feats.

“Stay away from very high momentum names, like a SodaStream, that are clearly fads,” says Kim Caughey Forrest, Vice President and Senior Analyst/Portfolio Management at Fort Pitt Capital Group in Pittsburgh. “These companies keep going up based on the belief that sales will increase forever. That works right up to the day it doesn’t.”

Successful investing isn’t exciting, it’s like watching paint dry.

4. Find stable consumer stocks poised for the future

To be an investor, you don’t have to know a thing about researching a company’s stock. You can invest in mutual funds, which allow you to purchase a diversified portfolio in one trade. Even easier, you can invest with a robo-advisor like Betterment, which invests your funds in a broad index of stocks and bonds that’s determined by your answers to a few simple questions about your goals and risk tolerance.

If, however, you want to have more say over the companies in which you invest, look name brands that will still be around in 50 years.

General Motors has emerged stronger after its government bailout; Walmart continues to outperform other big box stores; Amazon has invested in new technologies to widen its footprint in the online shopping marketplace. Experts say these stocks in particular, and others like them, make for outstanding investments.

5. Separate emotions from objectives

If you treat an investment possibility with the same partisanship as a sports team fan (or hater), you’re setting yourself up for trouble.

“Separating your emotional involvement with a security from the purpose of its ownership will lead to better overall judgment and performance,” says Kenneth Hoffman, Managing Director and Partner at HighTower’s HSW Advisors in New York City. Otherwise, you’re turning investing into an adrenaline junkie ride better suited for Vegas.

6. Invest in what you understand

Ignorance is never bliss when you pick an investment category. Whether you use an advisor or do it on your own, learn everything you can about where you put your money.

“If you don’t understand the business you invest in, you’re going to be highly unlikely to discern the noise from truly meaningful information that should factor into your decision making,” says Thomas Sudyka, Jr., President of Lawson Kroeker Investment Management in Omaha, Nebraska.

7. Your home is not an investment

If you buy a townhouse, condo or single family home, there’s every temptation to regard its possible appreciation as an investment. But when you factor in property taxes, maintenance, insurance and other expenses, it’s often a wash—or worse.

“Homeowners must not make the mistake of thinking of a home in the same terms as your stock portfolio,” says Elle Kaplan, CEO and Founding Partner of LexION Capital in New York.

8. Tweak over time

The overwhelming number of portfolios don’t need a complete overhaul. Yet nervous investors too often resort to that strategy during down market cycles. “Investing is a long-term activity, not a sporting event with minute-by-minute adjustments,” says Dave Rowan, Founder and President of Rowan Financial LLC in Bethlehem, Pa.

9. Diversify, diversify

Dividing your investments into separate buckets may seem overwhelming at first. Try not to worry; start simple and branch out as you come to understand the different ways to diversify: high risk versus conservative, domestic versus foreign, socks versus bonds. You may not avoid losses or score huge profits, but chances are high you’ll experience a smoother ride over the years.

If you need to review your portfolio, set up a free account with a tool like Personal Capital, which can show you how your investments are categories and identify weak spots for you to address.

10. Consider a financial advisor

Sooner or later, most investors will want professional help managing their investments. Hiring a financial advisor is a smart move, but you should proceed carefully.

To find an advisor, rely on a personal referral or a directory of independent, fee-only financial advisors like this one.

Be wary if an advisor tries to push certain products on you. “If she doesn’t buy what she’s selling to you, are you sure you want to buy it?” says Ric Edelman, Founder and CEO of Edelman Financial Services, a national firm. “Put another way, would you dine at a restaurant whose chef refused to eat there?”