Investing is too hard

Investing is too risky

You need a lot of money to invest

Let’s look at each one of these misconceptions.

Investing is too hard You may think that investing is just too hard. But a lot of that has to do with terminology of investment industry. I mean who knows what Fed Fund rates, mutual funds, indexes, or blue chip stocks are? But you don’t need to be scared off by a bunch of words—in end they are just words. Just like you probably didn’t know what PMI was before you bought your first house or what APR was before you got your first credit card, you can learn what these things are. And you will find that they aren’t so hard to learn. And if you seek advice of a professional, they can explain it to you.

Investing is too risky.

Some people have idea that investing is risky. Movies such as “Wall Street”, no doubt, lead people to think that. But fact is that investing is only as risky as you want it to be. Do you want to take huge risks? You can invest in international stocks. Want to play it safe? Go with bonds. The risk level is up to you and only you.

I can’t afford to invest.

Many people think they can’t afford to invest. But when you look at alternatives (social security may not be there, job security is not 100%), you really have to ask yourself how can you afford not to invest. And earlier you start, more money you will earn. Even if it’s only a small amount, money you invest today will earn you big in future.