Although everyone wants money, not everyone likes to invest. Even after not-so-subtle nudges, people hesitate to take the final plunge in the investing world. Today we look at some of the most common excuses given by people who do not like to invest.
Excuse number 1: My father/ brother invest my money :
If you think someone can invest on your behalf, great, use it as a learning ground. But everyone has their strategy and goals. So once you learn the trick of the trade, it is time to put your investment strategy in place. Your strategy could be very well different, so it is best that you invest your money yourself.
Excuse number 2: Investment is complicated
Everything is complicated when tried for the first time. You took time when you finally took your first steps, as a toddler, you stood up, you stumbled, but you never gave up! So then why do you use this excuse while investing? Managing money is easy when you learn the jargon. You can read some basic terms for investing.
Excuse number 3: I don’t earn enough to invest
This is the most common excuse given for not investing. Do you know that you can start SIPs for as low as Rs. 500. You just need to get into the habit of saving. You can allocate different funds for different purposes like one for child education, one for retirement and another for buying a home. Also remember do not put all your eggs in one basket, diversify your investments.
Excuse number 4: I don’t know how much to invest
Well, it all depends on your ultimate goal. You need to determine how much you need to save so that you can spend with ease on your future goals. Ideally, you should save of approximate 30- 40% of the total amount of what you earn. But if that’s not possible then try and get a figure of the amount you will need in future for your goals like – emergency medical fund for old age, buying your dream car, etc. and back calculate to the current investment that you should start doing.
Excuse number 5: Who has seen the future: I would like to spend all my money rather than wait to spend it
Well, instant gratification syndrome is very common among people. But, there is no denial for the fact that you will need money in the future and if you don’t save up now, then probably you will regret later. While you enjoy the money today, but you don’t have any back up for the future or against inflation or any future emergencies.
Excuse number 6: I prefer money in my saving accounts and fixed deposits:
Yes, market investments are riskier, but they are also more rewarding. But, unfortunately, money in savings accounts and fixed accounts is not efficiently able to deal with inflation. The average rate of inflation in the last decade has been around 8%. Guess what that what the PPF get you. To beat inflation, you have to invest in avenues that offer lucrative gains. Yes, there are risks inc\volved. But everything we do in life involves risk. So invest in the market in equity, in mutual funds, bonds, etc.
Excuse number 7: I will invest for it later
Well, you should not procrastinate! The later you start the more chunk you would have to separate with and the lesser you would get in return. The ideal time to start investing is 25. But even if you have not started investing yet, then start now, before t is too late. Start with a small amount until it becomes a habit to invest.
Excuse number 8: I don’t have time to invest
Another common excuse, but sadly it just showcases your laxity and laziness. You need to do proper research and then invest according. Even if you don’t have time to study individual stocks, then you could invest in mutual funds. You could also invest in bonds, options, and other financial instruments. All you need is to do research, which can be done at any time of the day.
Still, think that investing is not your cup of tea? Have more excuses or doubts or questions? Write in the comments, and we will address them.