If you aren’t investing, you are missing out on the opportunity to grow your wealth. The wealthiest people share the mindset of having their money work harder than they do.
The key to truly growing wealth is creating a passive income generation stream, which involves some form of investment. Don’t let these three myths hold you back from investing your extra cash in the market.
It’s too hard and complicated. The reality is it’s never been easier to start investing. There are many resources available to not only open accounts, but also to learn more about investment options. From advisers to apps, consumers have never had as much access and control over their investment needs as they do today.
Investing is only for the rich. You don’t have to wait until you have thousands of dollars to invest. If you have $50-$200 to spare, that’s enough to start building wealth. Contrary to popular get-rich-overnight beliefs, investing is a long-term strategy. The earlier you start consistently investing, even a small amount of cash, over time, the better.
It’s too risky and I’ll lose everything. The market is filled with highs and lows and there can be drops in value, but historically over the long-term, it balances out or bounces back. While there is absolutely some degree of risk, it’s unlikely that investing in the broad market, over years, will leave you with nothing. For that to happen, the top 100-500 companies that in general represent the U.S. economy would all have to go bankrupt. If you still feel uneasy, an IRA or 401(k) plan is a good start.