6/06/2007

Personal Finance - Investing In Your Futurew


Investing to a lot of people is comparable to going to the doctor, you know you should but it's kind of scary, so you put it off. Does that sound familiar at all? Well, the thought that should be even more scary is what may happen if you don't start investing.

One of the biggest misconceptions about investing, whether it be the stock market, bonds, real estate, or even a 401k plan, is that you have to have a lot of money to do it, and you only do it so you can get rich.

The truth is, investing is something you do to secure your financial future and also build a retirement fund. Suppose you were downsized out of your job? Suppose your retirement is up in 10 years? By investing, you will be prepared to meet these new challenges.

That's the real meaning behind investing, planning your retirement, not becoming a millionaire. Did you know that at age 65 only 2% of the people are self sustaining? The other 98% depend on the government, social security, charity, or family for their monthly needs. This is why investing now is so important.

I've found the three biggest reasons why many people fail to get started investing in their financial future as follows:

1. Investing is just too difficult

Since most people don't use investment terminology in their everyday life, they don't understand what it all means, and they are scared off. Yes, trying to make heads or tails on blue chip stocks, index funds, etc., can seem overwhelming until you learn their meaning. Once you take the time to learn, it becomes easy.

2. There is too much risk in investing.

This is another misconception that keeps people from building their financial future. The truth of the matter is that you can decide your own level of risk in any type of investment. It can be something very low risk like bonds or even mutual funds. If you want safety in your investments you can easily have it.

3. Investing takes a lot of money.

You often hear people say they just can't afford to invest. It requires too much money. Again, can you really afford not to? Are you going to leave your future up to social security? Or your family? You can start with as little as $25 if that's where you're at. As time goes by, and your investments start growing, you'll be amazed at how fast it can build. The key is getting started. Don't wait, or put it off. By investing today you're securing a better tomorrow.

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