I recently met up with a friend over the weekend and our discussion tilted to personal finance and Investing. She had never invested because she had some believes which had prevented her from investing.
Well, here are 5 investing myth to avoid.
Investing is for the rich & I need a lot of money – Wrong, investing is for everyone. You don’t have to be rich, start small with the money you have and watch your investments grow over time.
- Investing is for the old – Wrong, it is even better to start investing now. The earlier you start, the better and over the years, that small number of units you bought can grow into something really big.
- Investing is too risky & I like to see my money – I quite agree that investing can be risky, there are no guaranteed returns on equity, but then you will only be cheating yourself if you leave all your money is raw cash form. Your money’s purchasing power will deplete due to time value of money/to inflation. If you are so risk averse, then you can buy bonds which are less risky, worse worse, buy mutual funds.
- Investing is difficult – Yes investing to a lay man can be difficult, but it is easy to get started. You can start by reading up about stocks and bonds, then you study the trend of various company. I will be writing a post on I01 of investing very soon.
- Successful Investment is 100% luck – Wrong, there is a difference between skill and luck. Successful Investment is by applying the right skill and having an eagles eye by carefully watching the market but most importantly the company.
And if you are still too scared to invest, please do not leave your money in a current account, at least move it to a fixed deposit. You can unleash the power of compound interest through this form of investment. See my post HERE on it.
Happy weekend every one.