Yes, finances often seem complicated. And yes, some of them are. So if you sometimes feel lost between all the concepts and possibilities, you're not alone. Getting started in finance can be overwhelming — and if you feel that way, that's okay. It's okay not to understand everything right away, but you can still move forward step by step.

As already mentioned, you are not alone, if you do not immediately understand everything as soon as you tackle the topic of finances. According to Welt Online, only around half of Germans said they were doing halfway well when it came to finances. No wonder, because many of us have received little or no financial education at school or at home. Instead, we must acquire the knowledge ourselves in adulthood. This can be overwhelming or even intimidating at first. Because we usually don't know where to start, or we are simply overwhelmed by technical terms and offers.

Technical jargon — Is that necessary?

Terms such as dividend, cost-average effect and return on investment can initially seem like a foreign language, because many consumers are unfamiliar with the technical jargon of financial providers. While the use of such terms is primarily intended to demonstrate expertise, these often complicated terms make finances even more confusing.

But don't let that scare you off. Ask questions instead, even though asking questions might take a bit of effort. There are no stupid questions, especially when it comes to your finances. After all, you shouldn't buy a financial product that you don't understand. If pure explanations of definitions and theory aren't enough for you, then look for explanations that use everyday examples. Such everyday examples often help to make things more tangible.

Is that actually right for me now?

Once we've worked our way through the technical vocabulary, there is usually an even bigger challenge: to look through the sheer oversupply and choose the right one for yourself. Because A says one thing, B says another. There we read that we should invest in stocks and another source suddenly recommends pension insurance and our own relatives are still putting their money on the savings account at the same time? Many of us feel overwhelmed by the wide range of offers, the numerous opinions and tips, but also warnings. Instead of making a decision, we are instead putting off financial action so as not to do the wrong thing.

It is therefore important to know your own goals. Because only when the goal is clear can a wise decision be made.

It's hard to get started, but it's doable.

Every journey, including when it comes to your finances, starts with a small step. Steps that can help you get started include the following:

1. Find the right resources for you and get informed. There are lots of sources of information that can help you understand the basics. Blogs, apps, podcasts, YouTube videos, and books are great places to start. Select the ones that appeal to you the most. The content should also be fun. Finances don't automatically have to be dry and abstract.

2. Take your time. It is important to take time for yourself and not put pressure on it. Finances are a broad field, and it's completely normal that it takes a while to get your bearings. Be patient with yourself. Take the whole thing step by step. Focus on learning one topic at a time. Don't try to understand everything at once.

3. Know or define your goals. So that you inform yourself wisely and in line with the reality of your life and do not lose yourself in the abundance of information, set clear goals and select sources of information and offers accordingly. Otherwise, you'll probably lose yourself and continue to postpone decisions and action.

4. The right mindset is important. Finances are an ongoing learning process. Experienced investors and financial experts are also constantly learning new things. The key is to continuously educate yourself and be open to new things, instead of believing that you need to know everything right away. So don't be discouraged. If you make a mistake or don't understand something, don't be too hard on yourself. Mistakes are part of the learning process and can be valuable lessons.

5. Practice makes perfect. A bit of practice often helps more than just theory. Learning by doing is the keyword here — preferably with small amounts or, alternatively, with virtual offerings.

6. Get assistance (if needed) Get advice in your private environment, look for a community or a financial advisor who will help you with your questions.

Not understanding finances in the beginning or being overwhelmed is completely normal. Finances are complex, but that doesn't mean you can't do it. With patience, the right resources, and a step-by-step approach, you'll gradually understand more and more. Stay tuned, be patient with yourself and don't forget that every expert was once a beginner.

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