What to do when you don’t know what to do: A beginner’s guide to starting your investment journey
Many people dream of becoming financially free, yet the word “investment” sounds like a foreign language to them. They know they should be investing but simply don’t know where or how to start.
They keep their money idle in savings accounts that barely grow, while inflation quietly eats away its value. If you’ve ever felt confused about where to begin your investment journey, you’re not alone. The good news is that everyone who’s now an investor once started from the same point — not knowing what to do. Here’s how to begin, even if you’re starting from zero.
Start by understanding why you want to invest
Before you think about where to invest, you must understand why.
Ask yourself:
- Am I investing to build wealth over time?
- Am I preparing for retirement or my children’s education?
- Do I want my money to work for me rather than sitting idle?
Your reason will shape your investment decisions. Someone saving for a short-term goal, like buying a car, should invest differently from someone planning for retirement 20 years from now. Your “why” determines your strategy.
- Educate yourself — Start small but stay consistent
Investment is not gambling; it’s a game of knowledge and patience.
Start by learning the basics:
- What is risk and return?
- What’s the difference between saving and investing?
- What are shares, bonds, mutual funds, and treasury bills?
You don’t need a finance degree to begin — read books, watch videos, follow credible finance pages, and attend free investment webinars. Knowledge is your most valuable investment.
Begin with what you understand
The biggest mistake beginners make is chasing every “hot” investment tip or trendy scheme. That’s how people lose money.
A good rule is: If you don’t understand it, don’t invest in it.
Start with something simple and transparent:
- Treasury bills or government bonds (low risk, steady return)
- Mutual funds (professionally managed, good for beginners)
- Savings and investment plans with credible financial institutions
Over time, as your confidence grows, you can explore advanced options like stocks, real estate, or entrepreneurship.
- Start small — The power of consistency
You don’t need to be rich to invest. Start with what you have. If you can invest GH¢100 or GH¢200 a month, do it faithfully. The secret of wealth is not the amount you start with but the discipline to keep going. With time, compound interest — the magic of money earning more money — will start working for you.
Choose safety over speed
Investment is not a sprint; it’s a marathon. The moment you hear phrases like “double your money in a week” or “guaranteed huge returns”, run in the opposite direction. Genuine investments grow steadily, not instantly. If it sounds too good to be true, it probably is. Always check if the company or fund is licensed by the Securities and Exchange Commission (SEC) or Bank of Ghana before committing your money.
Seek professional guidance
If you still feel lost, talk to a certified investment advisor or visit your bank’s investment desk. Professionals can help you design a simple plan that fits your income, goals, and risk level.
You can also join investment clubs or groups where people learn together. Sometimes, community helps you stay disciplined.
Keep learning and adjusting
Investment is a journey, not a one-time event. As your income grows and your understanding improves, review your portfolio and make adjustments. The more you learn, the better your decisions become — and the closer you get to financial freedom.
Final thought
If you don’t know where to start, start with learning. If you can’t invest big, invest small — but start anyway. The worst investment decision is not losing money; it’s never starting at all. So today, even if you don’t know what to do, take the first small step — learn, plan, and begin. The path to financial freedom begins with one simple decision: to start.
>>>the writer is a Financial Economist, Research & Policy Analyst. He can be reached via 0248803710; numosuorephraim@gmail.com