Investing is a subject a lot of people don’t want to think about. And there is good reason for that. Investing seems scary. It either sounds like something only rich do or something that only a skilled professional can do. But truth is that investing is something that everyone can and should do—as soon as possible.
Why should you start now?
Think about this. There are two ways to make money. You can exchange your time for money or you can make your money work for you. Most of us work 40 hours a week. In this case, you are trading your time for money. But wouldn’t you rather earn more than you are making? If you are making $1,000, wouldn’t you rather be earning $5,000? Most people think only way to earn more is to work more. Work overtime is their motto! But there is more to life than working. Investing gives you chance to let your money work for you—saving you time and earning you money.
But is purpose of investing to get rich?
Some people don’t invest because they think that investing is something you do to get rich. They figure they’ll never earn enough to get rich, so why bother. But that’s not what investing is for. Investing is a way for you to be able to maintain your current lifestyle.
Think about this: what if company you worked for suddenly closed down? What are you going to do when you get to retirement? Sometimes working more is not a viable option. Investing gives you another source of savings and earning income. You don’t invest to become a multi-millionaire (of course no one would stop you if that happens); you invest so that you can provide for yourself in way you are accustomed to both before and after retirement.
Many people are convinced that investing is right thing to do at this point, but, there are some misconceptions people have about investing that prevents them from actually doing it. These misconceptions are that: