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Everybody wants to be rich and wealthy, but when it comes to creating wealth, one would rather avoid the hard work of investing patiently and blame one’s fate for not having enough money just when one needs it most – for special occasions or for a comfortable retirement! If creating wealth is on your mind, excuses have to be trashed and investment for growth embraced. To show you where you have erred, here are 6 silly excuses you must steer clear of: (Image: Thinkstock) </br><br><strong>By:</strong> <a href="http://www.creditvidya.com/" target="_blank">Credit Vidya</strong></a>
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1. 'I do not have risk taking power'</br><br> Let’s face it, investing is not easy and once you begin, you have to devote enough effort to it. But as much as that is true, investing according to your risk profile over the long term is only way to create wealth. Indians being hoarders by nature are naturally averse to taking risk. So if you are on the same path, you know what is the thing to do, or in this case, what NOT to do if wealth creation is your goal! (Thinkstock)
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2. 'I do not make enough money'</br><br> It is a myth that you have to make tonnes of money before taking the investment route. For small investors, the ideal route to invest is through mutual funds schemes that can be chosen according to your own risk appetite. Not only are mutual funds “safe” as they diversify your risk, you also get the added advantage of professional fund management. Besides each mutual fund scheme has a systematic investment plan or an SIP option that allows you to contribute small amounts of money at periodic intervals. Making small changes to your lifestyle, like cancelling a gym membership, or cancelling certain magazine or newspaper subscriptions (because you read them online anyways!) can go a long way in saving money. This money can then be redirected to SIPs and you will be surprised that you will have a decent corpus to boast of in a few years! (Thinkstock)
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3. 'I do not understand investing'</br><br> It is true that lack of knowledge or little knowledge can be a dangerous thing when it comes to investing as you may lose money. But do not use this as an excuse not to invest as it is easy to educate yourself on the basics of investing these days. There is a surfeit of information on the do’s and don’ts and do-it-yourself sites that have made it very easy for potential investors to take the plunge themselves. All you have to do is to read up diligently and you are bound to feel knowledgeable and confident about investing sooner than you think. If you still don’t think you can do it alone, take the help of a finance professional you can trust among your friends or relatives to help you get the hang of things initially. (Thinkstock)
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4. ' I don't have the time'</br><br> When it comes to building wealth, through investing, time is your best friend. The earlier you begin, the more the chances are to see your wealth multiply and grow over the years. So if you are in your late 20’s or early 30’s and are procrastinating, stop right away! Its time you drew up a financial plan according to your risk profile and begin investing as per your risk appetite. So do not be under the impression that investing is for the “oldies”. The sooner you begin, the better off you are! (Thinkstock)
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5.'I am scared of the stock markets' </br><br> So you have heard horrible stories about people losing the shirts off their backs because they were addicted to trading or “gambling” as you would like to believe investing is. But let us assure you here that is only one side of the story you have heard! The person who “lost his shirt” may not have done things right and invested in questionable stocks in a bid to become rich overnight. Well, that’s the number one rule of the capital markets. You cannot enter any investment plan with the hope of making “fast money” or “doubling your principal amount”. Investing requires a patient, disciplined and long term approach and there are not shortcuts here! Of course this is not to say that there will not be any volatility or the markets will be in bull run always, but the key is not to panic and make wise decisions about altering your portfolio as and when the need arises.(Thinkstock)
Financial cleaning is one thing that has to be done proactively (Thinkstock)
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