Investing is complete and fulfilling when there is an expected return if an investment doesn’t yield returns, then it can be considered as a failed investment. One important thing every investor must know and accept is that every type of investment comes with some level of risk. Considering the recent pandemic that has hit the world, there have been a lot of unforeseen losses for some type of investment especially the short-term plans, because of how the global economy has been affected. To invest successfully, you must maintain a positive mindset and leave your emotions behind the door while taking investment decisions. Often there have been some common misconceptions about what investment entails, and on that note, we will look at the most common lies or myths people over time have come to believe and accept about investment, and show you how not to get caught up in them.
You Require Huge Money to Start
This is a very common misconception held by a lot of people, they often think they need a huge loan or fat salary in order to start investing. Almost all the time when people are encouraged to start investing, they immediately start thinking about how to get a huge sum of money from somewhere or someone to start. Trust me, there are investment packages for every level, and if you could just review your expenses and cut off some excesses, you might just be surprised how much you’ll have let to stack up for the future.
Investing Is Too Risky
The older we get, we begin to realize the volatility of life and how everything we do is a risk, and if you aren’t in this school of thought, we should run through some scenarios together. Let’s be honest with ourselves, going to bed is a risk because you might not get up the next morning, and when you happen to make it into the next day, going to the bathroom to take a shower is also a risk because you might slip, fall and hit your head on the wrong spot and that could be it. Even going out to work or visiting a friend is also a risk because you might just get run over by a truck. I don’t mean to sound like a horror movie, but I hope the point is now clearer to you that there’s a basic risk factor in everything we do. What is expected of us in order to make the most important decisions especially when presented with the opportunity to choose, is to decide which risks are actually worth taking.
Investing Takes Long to Yield Return
A lot of people think that investments generally take too long for returns to yield and to be honest before I acquired proper information about investing, I thought quite similarly. Except proven otherwise, it is my personal opinion that people who have this misconception primarily lack patience to sit and watch a plant grow. If you’re one of such persons, you can still indulge in investing because you have options. The first note one must take on investment is that it varies in types, as there are short-term investment plans and there are also long-term investment plans. One must also know that because an investment has a long-term plan doesn’t guarantee a greater yield than the short-term plan. It generally depends on a lot of other factors besides duration.
Finally, in order to be a good investor, you must put aside every shadow of doubt, and leave your emotions aside while taking investment decisions. You’ll also need your optimism to stay afloat when tension rises. Being an investor comes with a lot of crucial decisions to be made, therefore you need to be clear from these common misconceptions that have to do with investing.