Everyone knows the importance of investing yet many still do not bother to take action. They seem perfectly happy letting their money rot in the bank, and letting it get eaten away by inflation. The sad thing is after 20-30 years later, they look back and realise they don’t have enough money to retire. They will then proceed to blame the government, blame the economy, blame their circumstances or blame their bad luck. Some people may belong to an older generation who did not have the opportunity to learn about investing. That, I can understand. Some may also be so risk-adverse that they refuse to invest. That mindset I feel, can be changed with some education and acceptance of risk.
Anyway, let me list out some lousy reasons people give to explain why they don’t invest.
1. No Money
This is the most common reason that I hear every time the topic of investing is brought up.
“I got no money to invest!” Mr No-Money will proclaim.
Maybe you will have savings if you bother to have discipline to watch your expenses in the first place. Take a look at your life and you will be surprised by the number of ways you can cut down on unnecessary expenditure. Are you buying Starbucks Coffee? Are you eating out at expensive restaurants too often? Are you having late night cocktails with your friends or colleagues at high-class bars or clubs? Are you spending too much on your car? Are you paying $70 / hr for a tutor to tutor your child?
Find out what’s siphoning away your money and plug that leak or your entire ship will sink slowly over time.
2. Don’t Know Anything About Investing
“I don’t know anything about investing! They didn’t teach it in school!” Mr No-Knowledge will protest.
We live in a highly-connected world. We can download e-books at the click of our fingers or sign up for online courses and learn in the comfort of our own homes. If you did not learn it in school, what’s stopping you from learning on your own? Go to Google right now and type in “Best Investing Books Ever” and many lists will be thrown up at you. Pick a few books, buy it from Amazon and it will be sent to your doorstep within a week!
Too busy to read thick tomes of books written by boring old fogeys who cite cliche investing quotes and pepper the pages with graphs and numbers?
You can always sign up for online courses that will summarise, shrink-wrap the thick throes of information into easily-digestible bite-sized video lectures and notes. You will also get a lifetime of support from the course trainers (if they are not a bunch of scammers.) Ask around for recommendations. I personally recommend the course trainers at the bottom of his page (just scroll down later!)
Knowledge can easily be attained at your finger tips! So what’s the next excuse?
3. No Time to Learn
” Ya I know I can learn! But I just got no time!” Mr No-Time will sigh hopelessly.
So poor thing!
A human has an average lifespan of around 70-80 years. Let’s say you graduated around 21-25 years old, you still got about 35 years of your life to learn about investing before you retire.
Don’t tell me that for these 35 years, you are busy every single minute? What about the time you spend playing World of Warcraft? What about the time you spend watching reruns of Friends? What about the time you spend watching television, or even worse, cat videos on Youtube?
I believe if we really want to, we can squeeze out time to do the things that are truly important to us.
4. Not Interested
“All right fine. You got me! I am just not interested!” Mr No-Interest will throw his hands up in the air.
So tell me, are you interested in money? Are you interested in living life on your own terms, and not worry about losing your job at the next crisis? Or do you love the joys and challenges of living from paycheck to paycheck, all the way until you retire?
Don’t you want holidays by the beach or a comfy home? Don’t you wish to provide your children with the best education?
Yes, all these is paid for with — Money.
How can we grow our money while we are busy at work? Readers of this blog all know the answer by now 🙂
5. Stocks Are Risky
“Stocks are risky! I will never touch stocks!” Mr Risk-Adverse folds his arms and states the fact.
And he is right.
Stocks are risky. So is driving a car. So is taking a plane. So are sports. So is eating. (You might choke!) We must accept risk in our lives. It is part and parcel of living. If you do not wish to face risk then do not be born at all. With the right knowledge, mindset, and discipline, risk from investing in stocks can be mitigated. After all, the only certainties in life are death, taxes, and inflation eroding your purchasing power over time.
Learning to invest is learning to embrace uncertainty in life. An investor is usually an optimist, and studies show that optimists live more fulfilling lives!
So be an optimist! Put your money to work right now!
Ok I made that last statistic up. But hey, it’s probably true!
Talk is cheap. People who know me long enough can vouch that I always put my money where my mouth is. And my money is in the online Dividend Machines course created by my good friends at the Fifth Person. This course teaches you how to pick dividend stocks so that you can build a portfolio of dividend-paying stocks. Not only will they teach you the criteria for selecting such stocks, they will also cover some personal finance and even provide information for investing in REITs. They will also provide a lifetime of support after you have signed up for the course. This course is suitable for beginners, amateurs and even experts. I am truly enriched by the knowledge I have gained from this course!
Click on the image below to go to the course page!