Shake off behavioural bias and start investing

Many investors are delaying investing due to a behavioural bias recognised as "complexity aversion"—the fear of the unknown.

- Gareth Collier

These delays can affect long-term financial well-being.

This fear can stem from:

► Making mistakes: Just like starting a new exercise routine, we may feel overwhelmed by the perceived complexity of investing. The fear of choosing the wrong investment or losing money can hold us back.

► Risk aversion: The fear of losing money can be paralysing. We often prioritise holding on to cash, even if it means losing purchasing power due to inflation. The inherent uncertainty of financial markets makes it easy to delay investing in favour of perceived safety.

► Lack of knowledge: Many feel they lack the financial literacy to make informed investment decisions. The vast array of options, jargon and strategies can intimidate even the most well-intentioned beginner.

The cost of procrastination Procrastinating on investing has a significant cost: time. The longer you delay, the less time your money has to grow through compounding.