There are three common reasons why many people do not invest. First, they do not have the extra funds because they need every dollar to cover their living expenses—which is obviously a valid reason. Second, people do not know what to do when it comes to investing. For that there are informative blogs like the one you are reading and numerous resources available in the way of magazines and Web sites. And third, people are intimidated.

Often intimidation is linked to not knowing enough about investing. You do not need to know all the buzzwords, inside “lingo,” investment strategies, and names of the major players or the names of the top mutual funds to be able to put your money into a stock, bond, or mutual fund and have it work for you. You need to know the basics:

It’s amazing how many people hold onto an investment longer than they either want to or should because they are too afraid or intimidated to call a broker and say, “sell it.” Any qualified financial planner, broker, or “analyst” (and I use the term loosely), should be working with you based on your needs and your level of “risk” when it comes to investing. In fact, you need not be intimidated because you need not work with anyone with whom you don’t feel comfortable. And in today’s electronic world, you may not need to work with anyone at all. Web brokers, discussed later, allow you to make trades round the clock without ever having to deal with a broker. There are more than one hundred Web broker sites, and commissions generally run between $5 and $30 per transaction.

While electronic trading alleviates the “intimidation factor,” it can cause other problems. Many online investors tend to get carried away and overdo it, simply because it’s so easy. It’s the same reason many television shopping club viewers have a garage full of junk—it was just too easy to buy it. In this day and age of computer games, playing the market can often feel like another version of poker or solitaire.

Some investors, therefore, appreciate the guidelines set by a broker’s hours. Said one investor, “It makes me do my homework, knowing I’ve got to tell a broker what I plan to trade. He’ll make the transition regardless, but I want to sound like I know something. In a way it serves as a speed bump to reckless investing.” While some online traders are spending the bulk of their profits on commission costs, others use the Internet primarily for research and trade accordingly.

Keep in mind that your $1000 investment is just as significant to you as the $1,000,000 investment of a Wall Street tycoon. Plus, you might enjoy the notion that he or she has much more to lose. Also, remember that all the huge success stories you read about began with an initial investment, be it $100 or $1,000 or $10,000.

In the end, what is really intimidating is facing a financial future without the money you need to live life on your terms.

Now that's scary.