6 Fears That Prevent You From Investing
It’s hopefully no secret that investing is the way to build wealth. Stock piling your money in a savings account won’t help you become a millionaire, or even help you achieve your financial goals. Unfortunately, there are a lot of concerns and excuses that young professionals like to throw around that keep them from investing. I hope to dispel a couple of them in this post and to help motivate you to look at investing!
1) Investing is for rich people.
How do you think most of those people got rich? Not by sitting around and working their 9-5 job! It only takes a little bit of money to get into investing, and anyone can start trading stocks online!
2) I just don’t have enough money to make it worthwhile.
It’s the principle of the matter; if you can learn to make a little bit of money, you can learn to make a lot of money!
3) I just don’t have time.
Let’s face it; what young professional does? The fact is, if you don’t purposefully make time for your finances, they’ll easily slip out of control for you. It actually doesn’t take all that much time to research and invest your money, plus there are now more and more affordable services online (Betterment, Learnvest) for you to pay a nominal fee to have your money invested.
4) There are too many options out there to invest in.
Well, you’ve gotta start somewhere. Try picking one good mutual fund or an index fund. This is a quick way to diversify your money and lessens the risk of just picking one stock.
5) I’m afraid I’ll lose my money.
That’s a fair point. Firstly, never put more money in than you could see decline. You should always keep an emergency fund as well as a nice pile of cash in the bank before you start investing. Secondly; no risk, no reward. You have to be willing to take a risk with your money in order to get the reward of actually making money. Thirdly; start small and safe with your investing. Don’t go investing in high tech companies that you don’t even understand their business model. Although you won’t ever eliminate the risk, you can certainly learn to mitigate it.
6) I already have a retirement fund, why should I invest more money?
Firstly, good for you for having a retirement fund! Take a look at your savings account right now, how much interest is it paying? I’d be surprised if you said more than 1%. Inflation in 2013 here in the US was 1.5% last year. That means that your money essentially lost some of its value just sitting in the bank. Although you shouldn’t go out and invest all of your money in the market, investing more than $0 would be a good start.
By investing early, you’ll hopefully be able to enjoy years of compounding interest and will see you total net worth grow!
Ready to start investing but not sure exactly what to do? Check out this post where I detail exactly how I invest and the easiest way for you to start investing today.
6 Fears That Prevent You From Investing is a post from: Young Finances Please check out the site at http://youngfinances.com or connect on Facebook at YoungFinances. Thanks!
