Investing is one of the most important things you can do to secure your immediate and future finances. Do you really want to work for the rest of your life? If not, there is no excuse that should prevent you from protecting yourself. Unfortunately, many people only look at what is directly in front of them instead of planning for their future.
1. Why aren’t you investing?
Whatever the excuse, there is a solution that will help change the way you think. You can only make money by working or investing, and excuses have never earned anyone a dime. Many people might say, “I don’t trust the market.” Many people fear that the volatility of the market results in dramatic losses.
However, without risks, assets can’t grow. It is important to find a financial planner you can trust. A good financial planner will split up your investment and do a risk analysis. A financial planner won’t push you into risky investments, especially if you are a first-time investor.
Remember that the average savings account is currently paying less than 1% with inflation at 3%, while the stock market earns about 10% each year. Investing is always a risk, but being too safe can actually end up costing you more. Check out our Investing basics page to learn how you can get started on your investments.
2. “I don’t have the extra money to save.”
If you don’t have money to spare, think about where it is your money is really going. Do you go to the movies, restaurants or coffee shops? Instead of spending, try to stay home and rent a movie to help you save a few bucks each week.
When you change your spending habits, you will notice that you have more money at the end of each month. It is better to have your money work for you instead of watching it go into someone else’s pocket, leaving you with nothing to show for it. Many online brokers will help you open investment accounts without requiring a minimum initial deposit.
3. “Investing is too complicated.”
There’s plenty of help for people who want to save. Many people are afraid of financial planners, but they can help you get on the right track. Wall Street has earned a bad a reputation for sticking it to the little guy, but there are trustworthy professionals who are trying to protect you, not scam you.
You can also brush up on basic investing information by learning 10 helpful investing terms.
4. “I don’t want to tie up my money.”
Many people are nervous to lock their money away into accounts that they can’t access, but that’s not how all investment accounts work. There are investment opportunities for people, that are considered “liquid” products. Liquid investment accounts give investors the option to turn investments into immediate cash.
Also, short-term investment options allow people to put their money in certain accounts for only a limited amount of time.
5. “I’m too old to save.”
It’s not too late to create a financial plan. If you are 30 years away from retirement, or your retirement date is quickly approaching, you can take steps today to make your future more comfortable.
If you live paycheck to paycheck, there are resources to help you save what money you can in order to create a stable retirement. The stability of a Social Security income is no longer a realistic plan, but you can take control of your own future finances in case the option of Social Security income dissolves. It is never too late to take control of your financial future. Check out our Retirement basics page.
Set a goal that will help you stay on track. When you set investment goals, you are more likely to hold yourself accountable for what you do and what you don’t do each month with your investment account.