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Reasons why people don’t invest, and solutions for these.


Even if it is hard to believe, there are many individuals that do not invest their savings to increase their wealth. As I always say, if we don’t gain money through time, we are losing it. Inflation is always there to get you. It is important to save and invest your money because we are going to need it at multiple points in our lives. From an emergency like going to the doctor after an accident to something complementary like going in a vacation. Well, let’s explore the different excuses people say to avoid investing.

The first and most common one is “I don’t have any money left after my expenses to invest.” This must be true, I don’t challenge this statement, but have you checked your budget. Do you know how much you spend in: rent, bills, food, transportation, and other things? I am sure that once you make a budget and track all your expenses you will find out how much unnecessary money you are spending. Are you buying from the cheapest supermarket? Are you eating out too often for your budget? Are you paying for coffee every morning instead of doing it yourself? Are you turning everything off once you leave home? I think once we understand from top to bottom our expenses, we will comprehend that we are wasting money that we could use to make money, does not matter our economic status.

The second most common reason people don’t invest is “I don’t know anything about investing.” Again this must be true, but there is an easy solution: ask, study, explore. Nobody is born knowing how to do stuff we all learn before. And even if for some reason you are too busy to study you could lend your money to an Investment Manager, who is a professional that understands about investments and can probably maximize your return better than you do. This Investment Manager or Adviser will most likely have no problem explaining how your money will grow. Therefore, this again is not a valid excuse.

The third most common reason is: “I am not interested.” You are not interested, are you serious? You don’t like money? You don’t like a better life style? You don’t like a better house, car, vacation, food? Money is king. This excuse loses reasoning by its own weight. Everybody loves money.

Additionally, the last most common reason is: “I don’t invest because investing is too risky.” And again this is true but so is driving a car, playing sports, taking a plane.. We need to accept that there is risk in our lives. Almost nothing is certain, the only certainty is that we are going to die, taxes are going to be there, and inflation is going to decrease our purchasing power. Uncertainty is there, but it can be controlled or minimized.

Therefore, I hope that after going through the most common excuses for not putting money aside, I convince you that saving and investing is important and that you should start today. Think about retirement and all the extra stuff you could do tomorrow with extra money that you cannot do today with your current balance.

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