For many, the desire to invest is there but the first step is hard to take. Not because they don’t want to build wealth but because investing can feel risky or reserved for a certain type of person. Most beginner investors are held back by the same few mental barriers. Luckily, says James Foot, chief investment officer at Commonwealth Private Limited, these are much easier to overcome than people expect.
"I don’t know enough to start."
This is usually the first thought that stops people in their tracks. Investing is often framed as complex and technical, which can make beginners feel like they’re missing some essential knowledge. But Foot says the bar to entry is lower than many assume. “Learn a few key building blocks first – for example, the difference between a listed share, an ETF and a managed fund – and think about what you want your money to do over time.”
Everything else can be learnt along the way. Much of investing only really makes sense once you’re actively and regularly doing it. There are also products like Everyday Investing, provided by Colonial First State, that are designed to support a gradual learning curve, allowing you to start investing from as little as $2 and build understanding through experience.
"I don’t earn enough to be an investor."
Another common misconception is that investing only makes sense once you have a high income or a large lump sum saved. Foot says that thinking can delay people unnecessarily. “Starting off small is a great way to start your investment journey,” he says. Even modest amounts can grow over time thanks to compounding and the earlier you start, the more time your money can work for you.
Small investments allow people to experience how markets behave over time, without risking large sums of money. Investing regularly can help turn it into a habit that builds experience and confidence gradually.
"I don’t want to risk losing my money."
Fear of loss is deeply human and it’s one of the strongest barriers to investing. Unlike saving, investing comes with ups and downs – and that uncertainty can feel uncomfortable. “All investments have an element of risk,” says Foot. “There’s no such thing as a ‘sure thing’.” What is within an investor’s control, however, is how much risk they take. That comes down to understanding what you’re investing in and how assets behave over time. Starting small can help fear feel manageable. Experiencing market movement with a modest amount can build confidence without the stress of feeling overexposed.
"There are too many options and I’m scared of choosing the wrong one."
Choice overload is a common blocker. With so many funds, platforms and strategies available, it’s easy to feel frozen by the fear of making a bad decision. Foot’s suggestion is to step back and focus on the big picture. “Once you’ve defined your goal and appetite for risk, you’ll be able to map investing options pretty easily.” The key is remembering that your first investment doesn’t need to be perfect. It’s a starting point, not a lifelong commitment.
"Investing feels like it’s for experts or finance people, not me."
Perhaps the most subtle barrier of all is identity. Many people simply don’t see themselves as “investors” and that sense of not belonging can be hard to shake. While there’s no shortage of information available, Foot suggests being selective. “Make sure your content comes from credible sources.” But he’s clear that learning doesn’t stop at reading. “The real learning is in the doing.”
The philosophy is simple: just get started, be patient and pay attention, not just to how your investments perform but to how you react along the way. In the end, investors aren’t a special group of people – they’re just people who got going.
