Reasons Why People Do Not Invest But Should

invest money

If you ask around you will find that there are many people in the world who have never invested a penny in their life.  There could be many reasons why people do not invest such as feeling intimidated or they do not invest because they have a lack of knowledge regarding the subject.  But there are also some pretty silly reasons that have been around for people not investing.

Little To No Money To Invest

Even if you have a small amount of money to invest it is easy to get started in the investing process.  However it is important to mention that if you have living at the poverty line of below or even if you have a large amount of debt this might not be the right time to invest what money you do have.  Even if you only have ten dollars you might be able to find a discount broker that will let you trade for even less than that.  Another option is that if you have a 401(k) plan through your employer you can contribute as little as one percent of your gross income.  As you make more money you can increase that amount and take advantage of the fact that you company might match what you contribute.

Losing Money Is Not Something I Want To Do

Of course people lose money when they invest in the stock market.  It is also possible that people can lose a large amount of money within a short time span.  However you will find that in the long term you will probably recoup what you have lost and experience significant gains.  The trick here is to be patient.

My Plans Do Not Include Staying With This Company For A Long Time

Even if you do not plan on staying with a company for a long period of time you should still take advantage of the 401(k) that the company offers.  The reason behind this is that you get to take your money with you when you leave.  This is not a pension plan and will not require you to stay with the company for a certain number of years before being able to collect the money.  However if your company matches what you are putting into your 401(k) you will be getting free money and no one wants to turn down free money.

Self-Employed Or No Access To A Retirement Plan

Even if you are self employed or your company does not offer a retirement plan you can still find other ways to invest and still be able to get the tax breaks you want to benefit from.  One way is through a Roth IRA.  An IRA will allow for you to contribute up to $5000 per year and you can withdrawal the money when you retire for no taxes.  You can also speak with a financial adviser regarding other options you might have when it comes to investing for retirement.

You Want To Spend Your Money On Things

If you have extra money lying around you will be better off to invest it rather than spend it on stuff.  When you invest your money more than likely you will find that your investments will increase in value.  The things that you purchase will more than likely decrease in value.

There are many different types of ways to invest your money even if you do not have a lot of money to invest with when you first start.  You are better off investing you money into something that will possibly make you money in the future rather than having you spend your money on items that will lose value over time.  The trick is to be smart about how you invest.

Image credits to Chris Potter

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About the Author: Jay

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