Reasons Why People Refuse To Invest
For most people, the word investing and its concept isn’t new to them. A considerable number also knows the importance of investing yet they still do not bother to take forward move. They look perfectly ok with their money being in the bank to rot, and letting it get eaten away by inflation. One sad thing is after old age begins to catch them years later, they look back and realize they don’t have enough money for retirement. The next thing is to start blaming the government, blame the economy, blame their circumstances or blame their bad luck. Investing is the gate way to financial freedom but people barely give it a second thought even if they hear of the performance of the stock market.
Let us try to explore some of the despicable reasons for which people refuse to invest;
The Excuse of No Money
One thing we got to understand is that in basic economics, we are aware of the fact that resources are limited in nature but our human wants are always unlimited. Money doesn’t grow on trees as its being said all the time. It is created and for that matter will always be in short supply as far as our demand keeps going up.
Many are those who in one way or the other earn something at the end of every month, yet they still complain about the problem of no money. Why is it so? It’s because they haven’t paid close attention to the kind of expenses they make as soon as any little money falls in their trap. The creation of money starts from almost nothing to huge amount of wealth. Yes, I mean huge amount of wealth. How is that possible? Someone might be asking right now.
Take a close background check of the most successful people in your society today. Find out how many of them even have the kind of opportunity you are having right now. How they manage to even pass through the educational system just to learn to read and right.
If only you can manage your expenses well, you will always have something to save for investment. Don’t worry about how much you are earning right now and think about how you can effectively cut down your expenses on virtually unnecessary stuffs. Learn how to overcome Parkinson’s Law which states that “Expenses rise to meet Income, and eventually bypass income”. How can you be able to invest if you are trapped by this law? Think about it….
No Knowledge on Investing
“I don’t know anything about investing! They didn’t teach it in school!” You always protest. Yes, you are right, but the fact is that the school system doesn’t teach people about money, it doesn’t teach how to become rich. So for that we complete school and come home seeking for the kind of jobs for which most of them do not exist.
Today we live in a highly-connected global world. There are so many reading materials online that you can download at the click of our fingers or sign up for online courses and learn in the comfort of our own homes. If you did not learn it in school, what’s stopping you from learning on your own? Go to Google right now and type in “Best Investing Books Ever” and many lists will be thrown up at you. Most of these books are for free download while some aren’t. Pick a few books, buy it from Amazon and it will be sent to your doorstep within a week!
Too busy to read thick tomes of books written by boring old fogeys who cite commonplace investing quotes and pepper the pages with graphs and numbers?
You can always sign up for online courses that will summarize, shrink-wrap the thick throes of information into easily-digestible bite-sized video lectures and notes. You will also get a lifetime of support from the course trainers. Beware of scammers though. Ask around for recommendations.
Knowledge can easily be attained at your fingertips! So what’s the next excuse?
If you are looking such educative and thought provoking books on investment, I recommend you to look for "RICH DAD POOR DAD and RICH DAD'S GUIDE TO INVESTING", all by Robert Kiyosaki to begin your education on investment. There are good books too on investment I may be recommending later in other posts.
They have No Time to Learn Investment
All of us can learn, but we often just got no time. A human has an average lifespan of around 70-80 years. Let’s say you graduated around 21-25 years old, you still got about 35 years of your life to learn about investing before you retire.
You definitely can’t be busy for this 35 years of your remaining life every single minute. What about the time you spend playing FIFA games? What about the time you spend watching seasonal movies? What about the time you spend on virtually unproductive activities? Search within your life and you see a number of unnecessary thing you often spend your time on and divert them productively.
I believe if we really want to, we can squeeze out time to do the things that are truly important to us.
They are Not Interested in Investment
One funny thing is that, a lot of people desire to be rich, be wealthy and so successful but have no interest in what the rich do to get rich. There is no reward for he who doesn’t do something.
If you are really interested in money, if you are interested in living a life on your own terms, and not worry about losing your job at the next crisis, you will have to learn how to invest and start now. Because that is what the rich do to get rich.
Maybe you love the joys and challenges of living from paycheck to paycheck, all the way until you retire. The fact is that those live their entire on paycheck always are locked up in debts and become average people.
The Fear of Risk
Most people are highly risk-averse and for that matter do not want to take any risk of investment. They fear the behaviour of the stock market as of it is the only risky thing in their life.
It is true Stocks are risky, but so is driving a car. So is taking a plane. So are sports. So is eating. (You might choke!). We must accept risk in our lives. It is part and parcel of living. If you do not wish to face risk, then you need not be born at all. With the right knowledge, mindset, and discipline, risk from investing in stocks can be mitigated. After all, the only certainties in life are death, taxes, and inflation eroding your purchasing power over time.
Learning to invest is learning to embrace uncertainty in life. An investor is usually optimistic, and studies show that those who are optimistic live more fulfilling lives!
So be an optimist! Put your money to work right now! For success in life depends on the amount of risk you take.
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