If you have never delved into the world of investing before, the concept can be completely overwhelming, not to mention intimidating.
Like anything these days, you hit Google to arm yourself with information. But as your read more, your confusion levels rise. There are so many new terms and ideas to process. It’s enough to make you close that search window and spend your hard-earned cash instead, because the idea of investing is just too daunting.
But don’t do that!
We are here to tell you that investing doesn’t have to be complicated. Many of the things that could be putting you off are not even true. So, take a breath, and learn about the top 3 myths about investing in New Zealand.
Investing Is Risky Business
Although there may be a small element of risk in investing, there are many different ways to invest. Some people love the thrill of taking a chance and getting a massive win, but in reality, they probably already have a basket full of money.
There are countless ways to invest responsibly and greatly minimise the amount of risk you take.
Often, people compare investing to gambling, but there is no comparison. Buying a lotto ticket relies completely on random chance – it’s a “cross your fingers and wish upon a star” kind of move, an uncalculated risk.
Investing, on the other hand, is a calculated risk. There are ways to predict the outcome of your investment, putting the odds in your favour.
One way to reduce the risk is to diversify. This refers to “not putting your eggs all in one basket,” and investing across a range of industries.
The easiest and safest way is to invest in Exchange Traded Funds. ETFs are a group of investments put together into one fund, giving you a small share of all the assets within the fund. They are affordable for beginner investments and a great way to reduce risk.
If one of your assets tanks, you still have money in the remaining assets.
The other way to minimise risk is to go for a long-term investment. Markets change and shares go up and down, but generally, over time, they all gain value over a long period. If you are diversified and in it for the long haul, this is playing it as safe as you can.
You Need To Be A High Roller To Invest
Movies and TV shows – along with celebrity culture – have given us the false impression that you need to have a lot of money to start investing, but this is completely untrue.
If you even have a few spare dollars a week, you can start investing right away.
Is it better to hold off until you have a chunk of money ready to go? Most definitely not. The longer you wait, the more you are missing out on returns. And because we talked about sticking it out for the long-term, there is no better time to start than right now.
You Can’t Invest Because You Know Nothing About Investing
Contrary to popular belief, you don’t need to be a Wall Street savvy, business-suit wearing pro who knows all the jargon to invest.
These days, investing is easy. Sharesies can help get you started with very little investment. This style of investing is a great chance for you to dip your toes in the water, understand what kind of investor you are and how it all works.
And wouldn’t you much rather figure it all out when you only have pocket money at stake rather than a month’s worth of wages?
Feeling inspired to get investing? Sign up to Sharesies – and get your first month free!