Thursday, October 19

10 Excuses of Not Investing & How to Tackle It

Let's continue our workshop on "Smart Investment for Beginners".

You and me have inertia; that is, we tend to procrastinate, especially when the subject in question look new and foreign to us.

However, some people are financially very successful because they win over their inertia. Do you want to be successful? Let’s tackle together the top 10 excuses of not investing. Now!

#10. I am too busy. Yes, of course. Let's see investing as a job! Investments can test your instinct, and learn more about the world. They can also be interesting conversation piece. Not a bad "job" afterall?

#9. I don’t have money. That is certainly a possibilty. You may even be negative in assets (read: debt). No worries. Take care of the debt first, and learn more about investing to get yourself prepared. You can start as little as US$50 each month.

#8. I am not a finance person. It doesn’t matter, because the most important skill is the ability to judge what is a bargin in the market, whether it is stocks, bonds, real estates, gold, fine arts, or that antique clock in the attic. Some financial knowledge is helpful, but not a prerequisite. You can also ask your friends or banker for advice.

#7. I am hopeless in math. Again, it has nothing to do with investing. Simple calculations can help in monitoring and analysis, but that’s it. In any case you can always use a calculator.

#6. I do not take risk. There is certainly risk involved in any investment, but so do anything that you deal with in daily lives. You can tailor the investment portfolio to suit your risk profile. In fact, if you do not want to take risk, you should actively monitor your own assets and make sure it matches with your appetite for risk.

#5. Investment is gambling and I don’t like it. Speculation is gambling; smart investing is not. Positive investment return is not guaranteed but you can reasonably predict the long-term trend if you do the homework.

#4. My friend got burnt in the stock market. Maybe he was speculating? Or he went for the extreme high-risk-high-reward route? Don’t be afraid of the stock market. The better you know it, the less you will get hurt.

#3. My family is not supportive. Maybe they have some misunderstanding or bad experience in investing? Show them this article and see if they will change their minds. Of course, you have to be convinced yourself first.

#2. I don’t want to deal with the investment advisers. You don’t have to! Thanks to the amazing technological advancement, all you need is a computer and an internet connection. Better yet, you can gather as much information from the web as a million investment advisers can tell you. This is a luxury unheard of 10, or even 5 years ago.

On the other hand, if a good investment adviser is available, he/she can help you track the long-term investment cycles, and introduce you to alternative investment products that could be difficult to get by yourself.

#1. You are in it anyway. Believe it or not, you are in the game before you know it. Do you own a house? Real estate is an investment. Are you working? Chances are that you have a mandatory retirement account. You can choose to ignore it, but it doesn’t mean it will disappear. It is your own money! Put it in good use for your own benefit.


Blogger _[ n S r ]_ said...

very very inspiring article!
thx u very much.

Tuesday, March 18, 2008  

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