One of the biggest fears is losing money due to inexperience. However,
this is a chicken and egg problem, if you never start, you will never gain
experience or confidence.
It makes sense to start early, and start small. You may make mistakes
at first, but time is on your side. Generally, the earlier you start investing,
the more risks you can take as any losses have more time to recover. Once
you’re older, you have more commitments and therefore, less chances to
fail. We’ve written about ‘time in the market’, you can read it here.
It also helps that investing in unit trusts (a professionally managed
portfolio of various securities) and index funds (follows a market index
such as the US S&P500) are getting progressively easier to do. Just start
there and stay invested to enjoy the gains in the long run.
Remember, bull markets tend to last longer than bear markets.