With the number of communication channels available to us right now, misinformation about investing is unavoidable. Typically, they are based on people's incomplete or inaccurate experiences. We’ll go through them in this article to give you some clarity on your worries and help you consider investing so you could further increase your income to the next level.

‍

Common Investing Myths

‍

Here are the three most common investing myths that have most likely kept you from investing:

‍

1.      Investing is like gambling.

‍

Sure, both investing and gambling involve some level of risk and making a choice, i.e., putting out capital with the expectation of future profit. However, the element of risk between the two is different. Gambling is typically a short-term activity, while stock investing can last a lifetime. An investment's value changes over time for the investor, and there is typically plenty of time to get out of the investment without suffering a complete loss of principal. The gambler's financial situation changes instantaneously, and there is no way out.

‍

Additionally, gamblers have a negative expected return. Investing in the stock market, on the other hand, typically carries a positive expected return as time progresses. You can benefit from capital gains and have an alternative income stream where you can earn on a monthly basis, ensuring a consistent cash flow unlike the one-off payment you get when you gamble.

‍

2.      Only rich people can invest.

‍

When we hear billionaires talking, investing is one of the things that they always mention. This gives off the impression that we need to be on the same financial level as them before we can start investing, but fret not; it doesn’t take a Bill Gates-type of wealth to kick off our investing journey.

‍

Always remember that you can start small. With enough research, you can learn that even $5 would suffice as a starting point. From there, you can begin a portfolio investment that aligns with your values the most. A healthy mix and well-diversified portfolio will be helpful for your assets to return or grow in value.

‍

3.      You need to be an expert.

‍

Many people are put off by the prospect of not knowing enough about the stock market and thus losing money. Of course, you need to do your homework on where you put your money, but just by having the right basic knowledge, it will be easier for you to take everything in and see the bigger financial picture of how it will impact you in the long run. You can attend classes to help you understand investing further before you take a dip into it. An example is the Next Level Academy, with over 10,000 students learning and being mentored through their investing journey.

‍

There are different types of investments to choose from, which give you the power to select depending on factors that are most important to you, such as your time horizon and your risk tolerance. Developing a good plan is the main key to having a successful investment.

‍

Learn to be a Good Investor

‍

From the outside, investing might look scary and complex, but don’t let misconceptions stop you from dipping your toes into the world of investing. The first step towards becoming a good investor is to stop speculating and start thinking like one.

‍

Take it from Andrew Morrison, who has invested his birthday money, Christmas money, and income from being a soccer referee since he was 14 years old. He bought his first stocks at Coca-Cola and Home Depot and eventually bought one Amazon share when it was at $300 per share. By reading up and starting early, he reached his second year in college with a portfolio worth $10,000.

‍

Get access to a FREE masterclass now to take your investing to the next level!