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5 Investing Excuses You Shouldn’t Give In To

graph-163509_1280Everyone knows that it is a good idea to invest your money for the long term. You don’t have to play the stock market actively in order to be invested – there are plenty of passive, simple ways to allow your money to work for you. Whether you want to take on very little risk, or you would welcome risk in order to aim for a big profit, there are plenty of investing options for everyone.

Many people simply sit on the sidelines and come up with excuse after excuse for why they haven’t yet started investing. Perhaps, you have used some of these excuses yourself. Take a look at the following list of five investing excuses to see if any of them sound familiar. Once you better understand why these are just excuses and not valid reasons, you may be a step closer to investing in the stock market yourself.

Excuse #1 – It’s Too Complicated

This might have been a valid excuse twenty years ago, but not today. With the wealth of investing information that is available online today, and much of it for free,  there is no reason you can’t learn what you need to know. Even if you don’t care to get into the complicated world of advanced trading techniques, you can educate yourself on things like index funds and mutual funds so that you can make safe and smart choices.

Excuse #2 – I Don’t Have Thousands of Dollars Available

You don’t have to invest thousands of dollars right up front to start investing. It is possible to open an account with as little as a few hundred dollars, and you should be able to add to that account a little bit at a time as you have money become available. The important thing is to just get started, even if the numbers are small to begin with. In fact, you can open an account with Motif Investing for as little as $250 to get you started investing.

Excuse #3 – I’ll Lose Money

This is an investing excuse I hear nearly every day. Investors see the stock market go down and they fear that they’ll lose all their money. Of course, it’s certainly possible that the you’ll lose everything, it’s not very probable. The market, as a whole, has had a positive return each decade for the past century – aside from The Great Depression. In the case of the Depression the loss was slightly below one percent for the entire decade. The moral…the market goes up and down – don’t let fear paralyze you from growing your money.

Excuse #4 – I’ll Do It Next Year

This is probably the most common excuse, but it is one that you should ignore. Starting next year will never happen, as you will just continue to put it off. Take a stand against your procrastination and open your investing account right away. Plus, the benefits of investing are even greater the younger you are when you get started investing.

Excuse #5 – I’d Rather Keep It in the Bank

You are never going to make the same kind of return by keeping your money in a savings account that you can by engaging in some simple investments. By placing your money in a low interest savings account, you will be missing out on a great opportunity to grow the size of your account passively over the years.

 

 

Have you heard any of these investing excuses? What investing excuses have you been guilty of? What are some other reasons why people stay away from investing?

 

 

Photo courtesy of: Pixabay

 

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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4 comments

  1. You can open an investment account for even less, if you are willing to limit your selection of investments. If you go with Loyal3, you can open an account for nothing, and buy from a limited selection of stocks in increments as low as $10.

  2. I used to hear this from my friends when I was to enter investment. But, I just shook it off and didn’t mind them because I felt like it was the best time to invest then and needed a source of income for me to prepare for my future. I took a risk and I am now glad that I did.

  3. These are all true! I usually heard the “I’d rather put my money in the bank” excuse.

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