What's stopping you?
These are some of the common reasons why people don't invest. Could any of them be true for you?
1: Not knowing where to start
Okay, so we know the idea of investing can be daunting at first. And if you don't have the knowledge needed to make a start, it can be especially difficult. But listen, we all have to start somewhere, and if you don't know what you're doing, you should do what you can to learn.
The internet is full of useful advice, so look for articles written by experienced traders and investors. Read investment-specific posts, such as this article on the best gold coins to buy. Read through any of the articles you can find on our website. And bookmark those websites that are useful, as you can always refer back to them when you need extra information.
To bolster your education, speak to people you know who have already started investing. Attend seminars and workshops to find out more. And check out our favorite investing books, blogs, papers, and podcasts, and increase your learning through some of these resources.
2: A lack of earnings
If your income isn't high, you might decide investing isn't for you. After all, you do have food to put on the table and bills to pay for, and these will be your priority. However, you don't always need a massive income to start investing. As long as you budget and set aside a percentage of your pay each month, you can still use a little of what you earn to start investing in something that suits what you can afford
You might also look for ways to boost your income. A side-hustle could give you more money to play with, for example. And when you do start investing, you will be able to use some of the money you have made from your investments, so you won't have to dip into your earnings at all if you maintain a steady cash flow.
Speak to a financial planner for more advice, and benefit from the suggestions they can give on how to invest with the money you have in your possession.
3: The risk factor
Investing does come with a degree of risk, so you might be afraid of losing your capital. However, think of the rewards. If you don't try, you will never succeed, and you might never build your fortune.
So, find ways to reduce risk. As we have already suggested, bolstering your education is certainly one way to do this, as the more learned you are, the better equipped you will be. Diversifying your investment portfolio is another way to minimize risk, as if you spread your investment money across a range of product types, you might still make a profit in one area to balance out a loss you might make in another.
Commit to research on the investment type you are considering to further reduce risk, and seek advice from a financial professional.
Don't put off investing forever. While we can understand why you might hesitate, it is still worth considering your future. You might achieve financial freedom, so consider your reasons for not investing, and try to overcome them if you can.
This is a contributed post.