The Savvy Investor Course starts tomorrow night and I could not be more excited to demystify the world of investing with this amazing group! I thought today would be a perfect day to debunk some of the most common investing myths I hear.
Think about what’s holding you back from getting started. Wouldn’t it be crazy if it were only a myth?! Here are 4 common investing myths, debunked.
1 – Investing is only for Wall Street and millionaires.
With all the information out there, confusing jargon and stories of money lost, investing can seem far out of reach and maybe even like a bad idea for people like you and me. Fortunately, this could not be further from the truth. People like us can greatly benefit from investing our money for the long-term and most of us will not be able to reach our savings and retirement goals without doing so!
2 – You need a lot of money to start investing.
To start to practice investing, you need very little money. You can buy a share of an index fund that mimics the S&P 500 and own a share of the largest 500 companies in the U.S. for under $200. Not too shabby! That being said, investing is for money that you don’t plan to use in the near future. You will want to have your emergency fund and any short-term savings in some form of cash such as a high yield savings account.
3 – Investing is very risky.
Investing can be very risky but doesn’t have to be very risky. For example, if you invest the money you plan to use for your vacation next year, there is a chance that you won’t have that money available when you need it. The market fluctuates and we don’t know where it will be day-to-day or even year-to-year. When you invest for the long-term (i.e. invest money you don’t need to touch for a long time), you take a lot of the risk out of investing because you can afford to wait out down cycles in the market. On average, the market has increased over the past 20 years, even the past 100 years so if you have the time to wait, you will be much more wealthy than if you didn’t invest.
4 – Investing is difficult.
This is another sometimes but not always scenario. Investing can be difficult but it doesn’t have to be. There are entire firms dedicated to beating the market. They use algorithms, computer programs and market experts to decide where and how to invest. Others of us are happy investing in the market itself. You don’t have to beat the market in order to do well with investing! The market has done pretty darn well over the long run and you can invest in the market by investing in an index fund.
If you are interested in learning more, sign up for the Savvy Investor Course that launches tomorrow night. Over the course of 3 months I’ll teach you everything you need to know to be investing confidently and competently, guaranteed. I start with the very basics so you don’t need to know anything about investing or personal finance to join. It’s time to have your money start working for you! Send me a note if you have any questions.