Investment is a term with several terms related to finance and economics. The term is associated with a form of asset accumulation with a hope to benefit in the future. Sometimes referred to as investment capital investment.
Investments by many people is seen as a daunting task, complicated, risky and suitable only for those who have more money. Sometimes they also assume the investment can only be enjoyed in the old time, so they tend to dissipate at a young age, rather than set aside to invest hard-earned. This makes it easier to avoid investing altogether, rather than deal with them directly.
Natural reaction is what makes humans tend to create a reason to rationalize itself to avoid an activity, as well as about the view investing at a young age.
Various misperceptions about investing makes us slow to realize the importance of investing. In this article we will examine some misperceptions that are often used as an excuse to delay or avoid investing activities.
"Investment can wait till I'm old."
Someone who started investing at a young age, say at the age of 20 years and started with 1 million per month, then at age 65 he would have more than 2 billion, assuming he's saving deposits with interest of 5%.
If he put off investing until age 40, then he should start with 3.34 million per month for up to 2 billion at age 65.
This is due to the ongoing effects (compounding) or in terms of our so-called "a little too long into the hills".
"I do not have enough money."
While it is true that at a young age usually we still have debts such as mortgage loan example study, car payments, mortgage, and so on, but the investment can be started from a small nominal. It is important to remember that investing does not have to involve huge funds, with small funds that we can develop from time to time, especially if you start investing at a young age.
"I do not know anything about investing."
Ignorance is not an excuse to avoid investing. A young investors have more time for studying, researching and developing proficiency in techniques and investment strategies.
Lots of information is available to prospective young investors, ranging from financial websites and education, to social networking web pages, webinars and advanced trading platform that is widely available for free.
At a young age, we often get a lot of "glitches" that it is difficult to start thinking about the future. Besides busy with friends, job and hobbies, sometimes we are still burdened with a variety of desires that they forget the future and success at very young age.
Despite the misperceptions about investing, for those who want to learn will surely feel the importance of investing advantages than those who wait to start investing.