There has never been a better time to start investing and building wealth. Unfortunately, given the widespread misconceptions and money myths that surround investing, people are reluctant to take the big leap. In creating this website, my goal was to dispel one of the more ill-conceived investing myths and show people how easy it is to start investing and why they should. What's the biggest investing myth?
There are many reasons why people don't invest. Here's one of the biggest myths:
1. Investing is too expensive; it's for the wealthy.
A common misconception about investing is that a person needs a lot of money to get started. Nothing could be further from the truth. Given the widespread availability of smartphones and fintechs (financial technology firms that make investing and banking easier than in times past, e.g. Acorns, Robinhood, Betterment, Stash, SoFi), investing is easier than ever. With just a few dollars, you can create an investment account in minutes.
2. Reasons why you should invest.
People invest for a wide variety of reasons. Here are just a few of them:
- Build wealth and save for retirement. Investing in the stock market is a great way to build wealth or save for retirement, compared to stocking money away in a savings account or a mattress!
- Save for education. With rising costs of higher education, investing may provide a great way to acquire wealth and pay for education. You can still invest with student debt.
- Save for a vacation. Who doesn't like to go on a great vacation? Vacations can be expensive, but investing may provide an avenue to help bring your vacation dreams to reality.
- Escape poverty. Investing allows a person an opportunity to move up the wealth ladder and escape poverty. According to the Washington Post, it is expensive to be poor in America.
- Make the next generation better. We have all heard the true saying that money is not everything. No millionaire or billionaire has ever taken their wealth with them when they die. Unfortunately, in this cruel and brutal place called earth, you need money to function, so will your family long after you have expired. You should consider investing because you could make the next generation (your children, grandchildren, nieces, nephews, etc.) financially better. Or, you could make a charitable organization more financially stable by devoting or portion of your financial resources to it in your living will.
The bottom line
Investing is a brilliant idea to help people acquire wealth. Unfortunately, there is a misconception that investing is expensive and reserved for the wealthy. This is simply not true; anyone can invest. Nowadays, people can start investing with just a few dollars. Investing is important, as it allows individuals to save for retirement, education, escape poverty, and make the next generation financially better, among other things. When you understand that investing does not require a lot of money and discover the engines that power stock market wealth, we hope you will create your first investment account.
Like this article? Please share and leave us your feedback in the comment section and help us improve and grow. Subscribe below to get our latest articles. Here are a few more articles you may find useful: I buy the U.S. economy with a single index fund. The initial result is stunning! | How to earn free money as a micro investor | How to invest $100 | How to invest $50 | How to evaluate and select a mutual fund | Cash is trash, not king. Invest it! | Stocks vs. index funds vs. ETFs: what's the difference?