These are some of the typical reasons that I heard for not investing, which I believe should not be an obstacle.
“I don’t know how.” With the abundant resources online, this is not a valid reason. Investing is like a life skills that is not taught in school, but this should not restrain you from learning. Getting familiarised with investments is not rocket science. Learning about investments is a lifelong process and it will definitely serve you well in preparation for your retirement. Are you willing to forgo a retirement, just because you do not want to start learning?
“I got no money.” If this is really the case, probably it is time to review your financials. Keep track of your expenses and be conscious of your cash flows. Begin to save, and in due time, you would have accumulated your emergency fund. It’s not about how much you earn, but how much you save. Allocating some money towards investments should be part of your financial planning.
“I am not interested.” Well, who are you kidding? Who wouldn’t be interested in making money work for you? Instead of 0.05% per annum, how does 2%, 3%, 5% or even potentially 10% sounds to you? This is how money is working harder for you. Or you are actually interested in working hard for money instead?
“I got no time.” The issue is how your time is being managed. If you can spend the night playing DOTA or mahjong, why not allocate some time to think about your financial well being. Spending all the time working in exchange for a monthly pay is also not an ideal long term solution. There is only so much time you have to exchange for that pay check, and this is if you are still in employment. Don’t you want to reduce the financial impact retrenchment have on your family? Don’t you want to spend time with your family? Spend time building your financial plan, and you will reap what you sow.
“Investments are too risky.” There is another risk you face by not investment which is the risk of loss to inflation. Leaving the money in the bank with meagre interest rate is not an efficient use of cash.
“Not now.” Then when? The best time to start savings, investing, or planning for retirement is 20 years ago. Shares in a company with strong fundamentals is likely to have returned your capital in dividends and capital gains. A matured endowment policies would have provided a lump sum payout for your down payment on your investment property or simply for your retirement funds. Are you going to wait for another 10-20 years to pass you by, simply because now is not the time yet? Time and tide waits for no man.
Does the above resonate with you? Contact me and I can assist in reviewing your unique financial situation.