5 Common Investing Myths: Busted

Many people find the overload of information around wealth creation so overwhelming, that they delay taking control of their finances. This is a shame because with investing the earlier you get started, the better. Busted below are five common investing myths.

You Need Lots of Money

The goal of sound investing is for your money to make more money. Most people have heard the expression make your money work harder. That’s the strategy around which most financial advisorslike My Wealth Solutions operate, and it doesn’t take a lot of money to get started. If you earn a regular income it’s time to start thinking about how you can make that income work harder for you.

You Need Financial Expertise.

Not everyone is a financial expert and you don’t need to be. What you do need, far more than an intimate understanding of financial products and services, is clarity about the one thing upon which you – and only you – are an expert: yourself. Spend some time working out what kind of life you’d like to live now, and in the future. Once you know what yourfinancial and lifestyle goals are, you can work collaboratively with a qualified planner on creating a path to get you there.

Investing Takes Up Lots of Time.

With everything going on these days, you probably don’t have much time to formulate the fastest and most effective path towards personal wealth creation. That’s where a financial planner can help. It’s their job to put your money to work for you and assist you to achieve your financial goals. Once your plan is in place, all you have to do is follow it, and check in with your planner now and then. Make sure you find a consultant who understands you and your lifestyle; be honest about how you want to live now, and into the future. Thinking about what you really want for yourself in the future does take time – but it is time well spent.

Investing Is Risky.

It’s true - there is no such thing as risk-free investment. It’s also true that, with inflation rising annually, cash buys less every year so by not investing, you are actually losing money – and what could be riskier than that? Having no financial plan also carries inherent risks of its own. For example, how would you cope with a sudden drop in income? Would you be able to cover costs in the case of injury to yourself or your family? These all too common scenarios could see you trapped ina debt cycle as you struggle to keep up with basic living expenses, never mind lofty financial goals. Investments create optionsso when emergencies do strike, you have more choice about how to handle them.

Investing Creates Tax Problems

It certainly does appear that any attempt to improve yourself financiallycreates a tax bill. Logic tells you that more money coming in is a good thing, and there are strategies for managing tax liabilities. A good financial consultant can offer guidance along these lines. After all, the goal of investingis to increase your income for your own benefit, not anyone else’s.

The bottom line is that wealth creation isn’t as daunting as it seems. Investing some of your hard-earned money now so you don’t have to work so hard later makes sense. With a regular income in place, all you need is a clear understanding of how you see your future lifestyle. Clarity yields better dividends than confusion– and you don’t need an expert to tell you that.

Worried about any other investing myths? Share your concerns in the comments box below.