By Michelle Wanjiku
Think about it, what do all wealthy people have in common?
Simply, almost all of them are investors; you will find that they own shares in various companies as well as bonds.
This tells you that saving alone won’t make you rich, but it does give you the chance to use the money saved to make more money.
Sadly, for a very long time, investing has been seen as something an average person can’t do. However, this isn’t true and as investing in stocks and bonds becomes more popular; there are various false assumptions people have.
Here are some myths you should ignore when it comes to investing.
Myth #1: It’s too complicated
Believe it or not, you don’t have to be an expert in stock markets to invest. While it’s true that investing does require some sort of knowledge in what you will be investing in, you don’t have to know everything.
There are various sources of information available for someone looking to invest and most financial institutions are willing to give you all the information you need.
Investing is not just for the well-educated or people working in the financial sector. It’s not too complicated for the average person to do. You just have to ensure that you do a little bit of research before investing in something.
See Also >>> Read This Before You Invest In Stocks In Kenya
Myth #2: I’m too young to invest
There is no age limit when it comes to investing your money. In fact, the earlier you start the more money you can make.
After all, if you want to be wealthy in your 30’s then you need to plan and make good financial decisions in your 20s. This is the time you also have no serious responsibilities like paying school fees for your kids. So you have a little extra cash to put into your financial growth.
Myth #3: It is too time-consuming
Investing in stocks or buying bonds will not take up too much of your time unless that is what you do for a living.
As an average investor, you find that you just need to get the right paperwork and everything else can be handled by an investment broker, and this can even be your bank.
That means that investing is a good way to make passive income and if you make the right investment choices you could end up making a lot of money.
Myth #4: Investing is for the rich
You don’t need millions of shillings to start an investment portfolio, there is no minimum amount required to fund your portfolio, but when you decide to purchase stock, you must buy at least 100 shares.
The prices for shares vary depending on the company you want to buy stocks from so you get to choose how much you want to invest. For example, with M-Akiba you can buy bonds with just 3,000 shillings.
Myth #5: Investing is too risky
I’m sure you have heard stories of people losing all their money in failed investments.Even though this can happen, if you are smart in where you choose to invest you can minimize this risk.
Investing is not a way to get rich quickly. You will not make a million shillings immediately you buy stocks or bonds unless you invest a lot of money.
For you to build wealth by investing you need to go into it with a long term mentality. Don’t fall victim to scams that promise you will make a lot of money quickly.
Whereas investing comes with risks, it can also be very rewarding and there are low-risk options you can go for, although they don’t have as much return.
Knowing where your money is going is important, so do your research before deciding to invest.
Don’t let any of these myths keep you from securing your financial future. Investing is a great way for you to build your wealth, but it is not going to be instant. So you need to be ready and willing to wait.
Making smart financial decisions is important if you want to improve your financial situation. Just ensure that before you choose to invest your money, you have done your research properly and are aware of all the risks that come with investing.