Stop believing these investing myths (they’ve all been well and truly busted!) and just get started already.
It’s not the right time, I’m too poor, it’s too risky. We’ve heard it all before and it’s all not true!
We want to bust these three investing myths that continually stop people from getting started investing. It’s time to ignore them and be on your way.
Investing myth #1: Now is not the right time.
Busted: There is never a ‘perfect’ time to start investing.
It is impossible to time the market – you have no idea what is going to happen tomorrow, in one year or in 10 years. It’s more important to spend time in the market than trying to time the market.
Waiting on the sidelines for a correction, or for that ideal moment, will only lead to more decision-paralysis. Ultimately, you could miss out on a lot of growth in the meantime.
Just start! Start small, and chip away. Let time be your friend, not your enemy. The longer you are in the markets, the greater chance you give yourself to build a meaningful portfolio over a long period of time.
Investing myth #2: I don’t have enough money
Busted: You can now start investing with as little as a few cents.
Thanks to micro-investing apps, and reduced minimum investment requirements by brokers, you no longer need a minimum of $500 to get access to the markets. You can literally start with as little as a few cents.
It’s time to stop thinking you need to be rich to invest. You get rich by investing, and it’s never been easier to start with very small amounts.
Investing myth #3: The stock market is too risky.
Busted: Did you know, based on the past 100 years of stock market returns, the probability of losing money over a 20-year period is zero percent.
Sure, stock markets crash, but they equally recover and then continue to climb higher.
Of course, some companies crash and never recover. But if you’re invested in the broader market, the ‘best recipe’ for loss avoidance is time. As time horizons lengthen, the probability of losing money in stocks decreases.
Forget the short-term, and think about the long-term. You’ll quickly see that the stock market isn’t as risky as you first thought.
- To improve your understanding of micro-investing, and to understand how it could work for you, check-out this.
- If you’re still not convinced that the stock market isn’t as risky as some people make it out to be, take a quick read of this. It could be all you need to finally take your first steps into investing.
This is an edited version of an article that originally appeared on Equity Mates.