Investing Misconceptions You Need to Stop Believing

Investing is a very important thing to do if you want to achieve financial independence. Not only could it help you create a passive income stream, but it can also help you grow the money you already have. Still, many people frown upon (with some even demonizing) investing due to wrong preconceived notions about it. Below are some of those beliefs, debunked for your pleasure.

You Need to Be Rich

A lot of people believe that you need to be filthy rich before you can start investing. However, many of the most successful investors we have today didn’t start out with loads of extra cash in their pockets. Some of them even started out by getting a loan. Plus, there are many investment platforms today that can help you get started with minimal capital.

You Need to Have No Debt

Another wrong assumption people have about investing is that you need to be 100% debt free before you can start. And while it’s true that you need to take care of your debts as soon as you’re able, that doesn’t mean you can’t start building your investment portfolio while you’re settling unpaid dues. In fact, the sooner you start building your portfolio, the sooner you’ll be able to have the passive financing necessary in settling your debts.

Investing is Gambling

No, it’s not, even if it looks that way. When you’re gambling, you’re risking your money to chance. But while you’re investing, you’re putting it to work. Plus, when you’re gambling, you don’t get anything other than what you win, whereas when you invest, you get to own a share in the company you’re investing in, essentially making you one of its owners.

Investing is Hard to Understand

People also believe falsely that investing is too complicated to master or that you need a college’s degree in order for you to learn the ropes. But the truth is, you don’t have to be a rocket scientist or a brain surgeon in order to know the basics in investing. All you need is time and the willingness to learn; by having both, you’ll be able to see firsthand just how simple investing really is.

Investing is Good

Many of these false ideas stem from the notion that investing is bad. But as mentioned above, investing can be good for you financially. So if you believe some of the misconceptions listed above, now’s the time to start reconsidering your mindset.