Investing can be one of the most effective ways to grow wealth, but countless myths can hold people back. From fears of needing a massive amount to start, to misconceptions about risk, here are seven common myths that keep people from building their financial future.
You need a lot of money to start investing
Many people think investing is only for the wealthy, but today’s options allow you to start with as little as a few naira. With apps and platforms offering fractional shares, you do not need large sums to begin, you can grow a portfolio gradually with modest, consistent contributions.
Investing is just too risky
Yes, there is risk involved, but it can be managed. Diversifying across different asset classes, sectors, and geographies can help balance potential losses. Remember, some level of risk is unavoidable, but with knowledge and a clear strategy, you can keep it within your comfort zone.
You need to be a finance expert to invest
Some people think investing requires deep financial expertise, but that is not true. Options exist that make investing straightforward, even for beginners. Financial advisers, helpful resources, and automated tools can simplify the process, allowing you to start building wealth without needing to be an expert.
The stock market is like gambling
The idea that investing is no different from gambling is misguided. Unlike gambling, investing allows you to own part of a business or asset that has real value. While there is no guarantee of success, strategic, long-term investing relies on informed decision-making, unlike the luck-based nature of gambling.
I am too young or too old to start investing
It is easy to believe you are too young and should wait to start investing, or that you are too old, and it is too late. In reality, starting early allows you to benefit from compound interest over time, while starting later means you will need to be more strategic but can still see growth with the right investments.
Only “hot” shares make real money
Many people are tempted to chase popular shares, hoping for a quick profit, but trying to “time the market” is challenging, even for experts. Historically, slow-and-steady growth shares outperform speculative bets. Long-term investing is often about holding onto stable assets, not following the latest trend.
Real estate is too complex to be worth it
Some feel that real estate investing is complicated and only for those with insider knowledge. However, real estate can be accessible, with options that allow you to benefit from the property market without directly owning a building or land. Learning about these options and exploring innovative ways to invest can make real estate more achievable for everyday investors.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
