Educating Investors

Excuses that are keeping you from investing3 min read

“Ninety-nine percent of the failures come from people who have the habit of making excuses.”                    

                                                                          -George Washington Carver

When it comes to investing people always find an excuse to avoid it, some common excuses that they say are lack of money, lack of knowledge, too risky, it’s too early to start or it is very costly to afford portfolio management services. 

Today we will try to discuss the reasons or excuses that are keeping you from investing in the stock market and how we can overcome them:

  1. It’s too early to invest: You may feel that you are too young to invest because you have just graduated or started your new job but are you aware of the fact that Mr Warren Buffett bought his first stock when he was just 11 years old. This may look astonishing to you but as the famous saying goes “The best time to plant a tree was 20 years ago. The second best time is now” so don’t hold it, start your investments as early as possible. Also early investing will help you to invest less in the long term. To know more on early investing read our article on Early investing.
  2. Don’t have money to invest: This is one of the most common reasons to avoid investing, people do not plan their budgets and end up with no money at the end of the month. To avoid this should one should plan his monthly expenses, we can use the 50/20/30 budget rule which says that we should spend 50% of our income on your daily needs and obligation, and you should split the other 50%, in 20% and 30%, you should save/invest the 20% and use the 30% for everything else that you want. Also, you can start with small amounts and then increase it gradually.
  3. Equity investments are too risky: Well, yes, there is a certain amount of risk involved in equity investments but in general, they are the best investment instrument that has the potential to beat the inflation rate and give your superior returns, unlike your savings account.
  4. Too old to start now: Many of us because of their debt burden or some other responsibilities did not that the time to plan their investment, for them its never too late to start investing and starting their wealth creation journey.
  5. Have no knowledge about investing:  Many of us feel that investing is just the gameplay of seasoned investors or we need to know the market in and out to start our investing journey, this is not true, for investing you just need to have a fair idea about the framework, start with small investments and take help from experts, one can also learn the basics from online videos.

Summary 

However, in the end, can say that out of all these excuses none should hold you back from investing your hard-earned money in the stock market and starting your wealth creation journey.

For beginners who don’t have the time and expertise to identify the right stocks can start with StockBasket – a long term buy and hold investment, it has expert-curated mini portfolios or basket of stocks. One can invest in these baskets of stocks as they are less volatile, great quality and their initial investment start from Rs. 3000.

So stop making excuses and start your investment journey today!

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