Investing in the stock market can be intimidating, especially for a beginner with very little savings. Even the pro’s can’t agree on where we should put our money. Index funds? Individual stocks? Bonds? ETF’s? The list goes on and on. Basically, it scares people away.
That, in itself, is not a bad thing, because some people have no business actively investing because they lack the knowledge to get a positive return. Some people should put their money in a simple mix of low-cost index funds and AAA bonds. The payout isn’t great, but it’s not negative.
On the other hand, here’s where that intimidation becomes a bad thing: When it keeps people from saving money at all. I spent years trying to convince my friends and family to start saving, but they would never listen. I heard the whole gambit of excuses:
- I can’t afford to lose it
- I don’t have time to track my investments
- I don’t understand how the market works
- I don’t have enough money to invest
- I’ll do it soon, I promise