How you can choose the right investing approach and amount

We’re continuing our series on Mistakes That Make Investing Stressful.
Today’s mistake makes a huge difference over time:

Being Uncomfortable with the Amount you're Investing or the Style you're Using.

There’s a weird tension you feel when you start investing:

You’re doing the “right” thing.
But you feel constantly uneasy.

You question your decisions.
Hesitate when the market drops.
Hesitate when the market rises.

Investing is just ... stressful.

Not because you’re doing something "wrong". But, often because we haven’t thought through what investment amounts and strategies suit us.

Here’s how to avoid that trap:

1. Invest amounts you don’t need in the short or medium term (5+ years).
 
It's basic advice. But, easier said than done.
If you’re investing money you might need in a year or two, every market dip will feel like a personal crisis.
You’ll panic. You'll want to sell.

At the same time, the amount you invest should still be impactful.
If you have a 15-year goal (like retirement) but only invest $200/month starting from zero, it might not get you where you want to go.
Balance is key.

You want an amount that is:

• Long-term only (you truly don’t need it soon)
  

• Emotionally manageable (you can stomach volatility)
  

• Goal-aligned (big enough to move the needle)

2. Choose an investing style that fits your personality, skills and you’re likely to succeed with.

Everyone says “invest for the long term.”  But the how matters just as much as the what.

Are you someone who enjoys diving into financial reports, following earnings, picking individual stocks?
Maybe a more active approach suits you. But, only if you enjoy the work and accept the risks.

Or do you prefer a simple, low-maintenance plan you can stick with while focusing on other parts of your life?
Then passive investing (index funds, automated contributions) might be your best friend.

There is a wide spectrum between completely active and passive investing.

I went through the different investing approaches in my ‘Intro to ETF investing” guide which I’m attaching again here:

Bottom line:
Your investment plan should feel like a well-fitting backpack:
It might be heavy sometimes, but it should never be unbearable.

When you're comfortable with how much you invest, and how you invest,  the market's ups and downs get a lot easier to ride through.