ABCs of Investing
Investing can feel overwhelming, especially if you’re new to it. Maybe you’ve thought about it but always find a reason to put it off. If that sounds familiar, you’re not alone. Many people avoid investing due to fear, confusion, or simply not knowing where to start.
As a Behavior Analyst and financial coach, I see a clear pattern in why people avoid investing—and it follows the ABCs of behavior: Antecedent, Behavior, and Consequence. Understanding this cycle can help you break through the hesitation and start making smart financial moves for your future.
A = Antecedent (What happens before the behavior?)
The antecedent is the trigger—what happens before the decision to avoid investing. Common antecedents include:
Feeling confused by investment options.
Fear of losing money.
Overwhelm from too much information.
Believing investing is only for the wealthy.
These emotions create decision paralysis, making investing feel risky or too complicated to start.
B = Behavior (The action taken in response to the antecedent)
In this case, the behavior is avoiding investing altogether. Instead of taking small steps to learn or start investing, people:
Put off making a decision.
Keep their money in a low-interest savings account.
Tell themselves they’ll invest “later” when they understand more.
This avoidance is a short-term solution to feeling overwhelmed, but it has long-term consequences.
C = Consequence (What happens after the behavior?)
The consequence of avoiding investing happens in two phases:
Short-term consequence:
Immediate relief from stress and anxiety.
A sense of safety by keeping money in cash.
No uncomfortable decision-making.
Long-term consequence:
Missed opportunities for wealth growth.
Reliance on social security, which likely won’t be enough for retirement.
Watching others build wealth while staying financially stagnant.
Avoiding investing might feel comfortable now, but it leads to financial insecurity in the future.
Breaking the Cycle
Now that you see the pattern, you can break the cycle by changing the antecedent or replacing the behavior with a more productive one. Here’s how:
️Start small. You don’t need thousands to invest—begin with $50 or even less in a low-cost index fund.
Educate yourself in simple steps. Read one article or watch one video at a time instead of trying to understand everything at once.
Automate investing. Set up a small automatic transfer into an investment account so you don’t have to think about it.
Reframe your fear. Instead of focusing on what you might lose, think about what you’ll gain—financial freedom, security, and long-term growth.
If investing feels overwhelming, remember—it’s just a behavior, and behaviors can change. By understanding the ABCs of investing, you can shift your mindset, take small but meaningful steps, and set yourself up for a secure financial future.
What’s one small action you can take today to start investing?
