The Five Worst Excuses For Not Investing
Haven't you started investing yet, despite actually wanting to invest?
If so, then read this list of bad excuses below, because just maybe your reason is one of them.
Excuses grow like cobwebs in your head, but they can become barriers of concrete if they keep you from taking action, time and time again.
Here are five of the most common excuses:
1. I can't figure it out
There are a lot of people who want investing to look more complicated than it actually is because they have an interest in you thinking it's hard.
The entire financial sector would like to sell you their ready meals. When you think it's difficult and complicated, they have a better opportunity to sell you some expensive service where they can invest for you instead.
That is why they use very technical words when talking about the food for their financial ready meals. But listen to me. A potato is a potato, even if some calls it “pommes du terre”.
You can do it.
2. I'm too old/it's too late
It's never too late. Never.
There was a German lady who started investing in stocks at an older age (after the age of 60). Today she is 81 years old, has become rich from it, and teaches others how to invest as a value investor. You can try searching for her. Her name is Beate Sanders and she is referred to as "the exchange expert" and "millionaire".
And by the way, Warren Buffett turns 90 this year, and his partner Charlie Munger is even older, and they're still in full swing.
Read also: Five Rookie Mistakes To Avoid In The Stock Market
3: I am too young and too inexperienced
I invest my 3 and 6-year-old boys' child savings, and I tell them what they are co-owners of, so that they can learn from it from an early age. So two boys aged 3 and 6 are already learning about value investments.
If you read this blog, you're definitely older than my kids.
I always get so happy when very young people contact me, because they´re thinking about how much their money can grow, and have so much potential.
If you are young, you can really take advantage of the effect of compound interest. Investing a little money regularly can really turn into a lot of money over time.
The argument of being too young is probably also related to the perception that one's money should be spent on studies, first home, wedding and first child. But here it is not a case of one or the other. You can easily invest 100 KR or 1,000 DKK a month next to the ordinary life cycle with the expenses that belong.
4: I don't know which platform I need
Just pick one.
You can open accounts and deposits in as many banks as you want, and it's not the case that you're forced to select only one and limited to it in the future.
I use a combination of Nordea (my main bank), Saxo Bank, Nordnet and a foreign platform. Of course, you don't have to choose that many.
Why not just start with your own bank and get some experience there? Then you can always open another account somewhere else.
In the vast majority of cases, the fees won't mean much because you as a value investor don't trade as often.
You'll find out along the way. Each platform has introductory videos that can get you started, but to be honest, I've never seen one myself. Most platforms are as intuitive as online banking.
If you are afraid to press the wrong button and lose a lot of money, then start with a small amount and try your hand at it. You'll soon get comfortable with the experience.
Read also: Be Rich Before You Are
5: It's too risky
The truth is that as you learn and build knowledge, matters become less risky.
It's risky to invest if you don't learn a little about how to pick companies or funds and don't research what you're investing in.
Unfortunately, there are many who buy shares quite randomly.
A great many newbies buy shares in a company because they have heard it mentioned in a podcast or because they caught onto rumours about a high return.
But not you, because you're reading this blog post and getting smarter.
Of course, you're looking into what you're investing in and you know what to look for because you've read my ebook Get Free here and downloaded my checklist here.
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