Friday, July 30, 2021
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Here’s why your excuses for not investing don’t hold up

It’s no secret that investing is one of the best ways to increase wealth. We are talking about real wealth, not the paltry benefits you would get from a savings account. If you really want to grow your money, you need the kind of return you will get from investing.

Of course we all know. But many of us have things that hold us back. We may not know how to start. We may feel totally out of our element. Or maybe now is not the right time. There are many excuses for not investing, and most of them don’t hold up.

These are the top reasons people don’t invest and how to avoid them and start building real wealth.

1. I don’t know what I’m doing

Come on, that has never stopped me from doing anything! Of course, I managed to break my car that time I tried to change the oil …

It’s a prank! Seriously though, don’t be put off by the investment game. Lots of apps, websites, and tools have appeared on the scene that are specifically designed for beginners.

We like Stash because it allows you to choose from hundreds of stocks and funds to create your own investment portfolio. But it makes it really simple by dividing them into categories based on your personal goals. Do you want to invest conservatively right now? Get it totally! Do you want to dive with moderate or aggressive risk? Do what you feel.

Rather than overwhelm you with industry jargon, Stash gives his mutual funds understandable names. You can invest in technology companies or green energy providers or cybersecurity companies through funds such as “American Innovators”, “Clean & Green” or “Data Defenders”. Or you can invest in funds with names like “Roll with Buffett”, “Moderate Mix” or “Global Citizen”.

2. I am afraid of losing my money

We understand. Sure, the stock market can seem scary and volatile, especially to a new investor. Stocks go up, shares go down. Last year was basically a roller coaster ride on Wall Street.

But the trick is to move on and have a long-term perspective. Historically, investing in the stock market has yielded an average annual return of 7%, adjusted for inflation, according to knowledgeable authorities such as the U.S. Securities and Exchange Commission.

In other words, don’t be afraid of losing your money. Just be sure to invest a responsible amount and stay the course.

3. Now is not the right time, one day I will

If you hold on to that belief, Never the time is right. Never.

Hear from Robin Hartill, a certified financial planner who is also an editor and financial advice columnist for The Penny Hoarder. His advice: Since the stock market will grow your money over time, you better start as soon as possible.

“The timing of your investment matters much less than the amount of time you have to invest,” says Hartill. “The S&P 500 has delivered inflation-adjusted returns of about 7% per year on average for the past 50 years. The cost of waiting for the perfect time to invest is high. Long-term growth is being lost. “

4. I can’t afford to invest

You can afford to invest. You can start small if necessary.

Investing does not require you to spend thousands of dollars on entire stocks. In fact, with Stash, you can get started as low as $ 1. *

A single share of Amazon stock costs more than $ 3,000, but you can still invest in Amazon like the rich do. Stash allows you to invest in fractions of shares, which means that you can invest in shares that you would not normally be able to afford.

If you sign up now (takes two minutes), Stash will give you $ 5 after you add $ 5 to your investment account. Subscription plans start at $ 1 a month. **

We all have excuses. If you want to grow your money, you have to get over it.

Get started. It is easy.

It really is much easier than you think.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. You are not rich, but you better believe that you invest.

* For Securities with a price greater than $ 1,000, the purchase of fractional shares starts at $ 0.05.

** You will also pay the standard fees and expenses reflected in the price of the ETFs in your account, plus the fees for various ancillary services charged by Stash and the custodian.



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