4 Common Excuses That Prevent You From Investing

Every now and then, we feel that we are not doing enough when it comes to investing. At the start of every financial year, we decide to begin investing in an SIP, we decide to activate a PPF and increase our overall savings percentage. However, as we prepare to file our tax returns – we find out that those plans have only remained on paper. Why is that we don’t persist and, more importantly, why do our intentions only remain on paper? That is because we keep giving ourselves excuses not to invest or probably delay the course of our investments.

Let me take you through some well-known excuses which are preventing you from investing and possibly how you can overcome them!

1. Investing is too risky – Maybe it’s not for me!

As Indians, our first investment choice always remains stuck on instruments which we ‘believe’ are less risky or most liquid. Therefore, we veer towards fixed deposits and gold, in every situation. But what we often tend to forget is the loss in returns we incur on these supposed safe bets! It has been a well-proven fact that investing in markets has not only been more fruitful but has also provided consistently high returns as compared to traditional instruments.

My advice is that – if you are still apprehensive of investing in the markets – DIVERSIFY! Once you spread out your risk, your investments will be far safer.

2. I don’t think I can achieve market-beating returns!

Almost everyone who steps into the market dreams of being the next Warren Buffet. While that is a good dream to foster, it is also essential to understand that building money in the markets requires time, effort and a lot of patience. Hence, rather than becoming the next stock market guru, focus first on achieving your investment goals.

My advice would be – don’t give up your daily job running behind the markets. Just set an investment target, be disciplined and forget about it.

3. I don’t have enough time to invest

Most of my clients move away from investing in the markets because they are not able to dedicate enough time to understand and structure their investment. In such situations, it is always better to get in touch with a financial advisor. While opting for a financial advisor may seem costly, in the long run the costs will definitely overhaul. You can also choose robo-advisors to assist you, in case of any doubts.

My advice would be – maybe your portfolio does not need your 100% time and attention. Get in touch with a financial advisor and figure how to optimize your investments.

4. I am not RICH!

Every investor who has built his journey from scratch will be able to tell you that the only way you can achieve your goals is through sheer tenacity and holding your goals through the time. It is essential, that you start investing at an early age, you will certainly benefit from the power of compounding.

My advice would be – in your investment journey always remember that TIME is your best ally and not money. If you are consistent with your investment over time, you will always make money.

So, sit back today and ponder whether in the last financial year you have given yourself any of these excuses. If so, then work on retracting them back right now. Only then you can lead a more fulfilling investment journey.