4 Common Misconceptions About Investing Your Money
By: Sarah Roberts
Tags: Investment, Money, Financial Advice, Finance, Property Investment

Misconception #1 — You need to be experienced

Investing your money into something that you’re unsure of is a daunting experience. Many dismiss investment as a skilled game that will only reward you if you have plenty of experience — something that young and beginning investors might not be able to afford anyway.

The fact of the matter is, anyone can get started on their investment journey at any point, without any prior knowledge or substantial capital.

Tip — If you’re looking for an easy way to get started in the investment world without putting a lot of money into it, why not start with something small on your phone? There are a ton of different apps and services that you can download instantly on the devices that you have available to you (and, in the case of your phone, on you at all times), and you can learn as you go too, without putting too much at risk. Some apps are completely free to try, meaning that you can learn as you go without putting in a penny.

Don’t forget that the internet is also an unending resource of knowledge and information in all kinds of formats, depending on how you want to consume it. From podcasts to videos guides to PDFs and more, you can learn about your chosen investment method, however, and whenever you want.

Misconception #2 — You need to be rich

While you do need some level of disposable income/capital to put into an investment strategy (you should only be investing money that you can afford to live without for long periods), you certainly don’t need to be sitting on a big pile of cash before you start investing.

Investments come in all different shapes and sizes, from anything as small as a penny stock that you invest in using a smartphone app, to a massive long-term property investment that you purchase as part of a retirement plan.

Misconception #3 — Investing is too time-consuming

Now, admittedly, there is some truth to this misconception. You can spend as much time investing as you want, but with developments in modern technology, an investment can be as passive and hands-off as you want it to be.

For young people and students that want to get involved in investment from a young age to build up their finances for the future, you should explore low-risk smartphone apps, as mentioned above. If you’re short on time, you can fill your five-minute breaks or commutes with some enriching investment knowledge, rather than just mindlessly scrolling through social media or playing a simple game.

Even an investment strategy as long-term and big (literally) as property investment can be done hands-off in the modern-day. It’s how a lot of international investors choose to do business in a hands-off way. Hands-off investors in property will typically have their apartment or house managed on their behalf. A dedicated company will handle all maintenance and tenant requests while the investor takes the payments. Many companies also provide VR viewings to their investors that can’t get to the property due to time limits or travel issues.

Misconception #4 — Investment isn’t a stable way to make money

Many think that speculative investment is a dangerous way to allocate your capital and that investment, in general, is a dangerous gamble rather than a thought-out plan. Investments aren’t set in stone, that’s true, but different markets have different levels of volatility.

If you’re worried about your investment ducking and dipping in price now and again, you might want to steer clear of the likes of stocks and shares. On the other hand, property is a tactile, physical investment, and it tends to retain its price well, with steady growth over time.

Remember — At the end of the day, it’s important to remember that all investment strategies have an associated risk with them. Unless you have a specific assurance in your investment, you’re never guaranteed a figure that has been projected — they are, after all, just projections. While a particular opportunity can look exciting if others around you and confident investors are singing it’s praise, that doesn’t mean that it will be a certified perfect fit for you. Do your well-rounded research, but then come to your conclusions on what you think would be the best strategy to go with.

What are your thoughts on investment and saving for the future? Join the discussion and let us know what you think!