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4 Reasons You Haven’t Invested in The Stock Market Yet

4 Reasons You Haven’t Invested in The Stock Market Yet

We all know that we should not only save money, but invest it every month. There’s more to building wealth than collecting a paycheck and spending it wisely. Still, barely half of Americans trade in the stock market — why are so many people working hard for their money, but not making their money work hard for them in return? It’s a safe bet they are buying into one of the following misconceptions (just like I did, before I started investing):

1. I Don’t Have Anything to Invest

Americans are living from paycheck to paycheck. Over the last decade, salaries haven’t kept up with inflation, and people at every income level feel the pinch.  As a result, they tend to think short-term about finances—they just want to make it to the next check without falling behind. But imagine this: you are 75 years old, and the decisions you made at age 35 mean you are still limping from one payday to another. Now, however, the “payday” consists of a social security payment, not enough to cover even your basic expenses. Forget about luxuries, altogether.

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Sounds grim, doesn’t it? But this scenario is exactly where short-term financial thinking leads. For those of us who will not inherit fortunes, long-term planning is the only way to have a comfortable, enjoyable retirement. That means not only saving, but investing, now. Start small by saving a small percentage of your monthly salary for one year. At the end of the year, use that savings to open an investment account. That’s all it takes to begin building a secure future.

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2. It’s Gambling

One of the biggest myths about the stock market is that it’s really just gambling. This couldn’t be further from the truth. Gambling is a game of chance, one in which you have little or no hope of winning, and in which no amount of knowledge can help you. Investing in stocks, however, means investing in companies you have good reason to believe will be successful. It takes research, to be sure, but the more you learn about different industries and the factors involved in their success, the more likely you are to select long-term winners. While there is risk involved, any reasonably intelligent investor who is paying attention can earn nice profits, over time.

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3. It’s Confusing

It doesn’t have to be confusing. True, the stock trade has its own jargon, and over time, the amount of jargon has grown immense. To a beginner, the unintelligible slang and acronyms may seem baffling and discouraging. Luckily, the web includes some rich resources. For example, Nasdaq.com provides a free online glossary that defines over 8,000 investment terms. All it takes is a little bit of research to cut through the clutter and you’ll be comfortable with the terms being used in no time at all.

4. It Costs Just to Play

Historically, it did cost quite a bit to research and track stocks and to make trades. Subscriptions for research and tracking tools cost professionals up to $24,000.00, annually. Those professionals pass their costs on to everyday investors through a bewildering schedule of trade and account maintenance fees. But those days are in the past. Today, everyday investors can research and track their stocks for free with online tools like INDX.guru and trade for free with apps like Robinhood (disclaimer: I work with INDX.guru). With today’s online resources you don’t have to spend a cent beyond the money you are actually investing.

There really is no reason for anyone to avoid the stock market. Making your money work for you is the key to long term security. With so many free resources out there, the barrier to entry to investing in stocks is lower than ever.

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4 Ways to Send a Money Transfer Online INDX.guru 8 Powerful Hidden Features in Stock Market Apps You’ve Probably Missed 4 Apps To Turn You Into A Stock Market Pro (You Should Use) “I would be so successful if someone just gave me a shot”, you might think. Why not be the one to give youreself a shot? Many people out there have mindsets and attitudes that set them up for failure. They might answer my question with, “That's a crazy idea!” or “I've already tried that!” but how much of that is just making excuses? When it comes to limiting your own success, there are ten particular mindsets that turn those answers into self-fulfilling prophecy: 1. Loafing You'll write that novel just as soon as you're done with your favorite show. Oh, but now you're hungry. You'll get started after a snack. Oh, but now that snack has made you sleepy – a little nap couldn't hurt, right? One of the hardest parts, and the most obvious, of achieving success is the actual work. Procrastinating, making excuses or tricking yourself into loafing is just going to cement the fact that nothing will ever get done. It might not sound pretty, or even too easy, but the easiest way to get to success is to just jump in and get going (which is exactly how I got started). 2. Blaming It's not your fault you're not successful – the industry is bad, you don't have the money, etc, etc. When it comes down to it, however, who is the one responsible for your success? You. This is the day and age where people are launching successful start-ups in a few months, getting published online and finding their way to success one way or another. Some things might be out of your control, but blaming others is just going to waste the energy and time you need to get going. 3. Sour-grapes Being envious of the success of others is almost as bad as blaming them. All the time and energy you could be putting into your own goals is going towards a person who more than likely has done nothing but show you that the goal is attainable. You don't have to be applauding their success, but being envious and sour about it is a waste of time – let it roll off your shoulders and dig down towards accomplishing your own goals. 4. Minimizing others success Again, you don't have to be cheering and raving about the success of others, but minimizing their accomplishments looks bad on you and on your own goals. If you attained success, would you want others rolling their eyes and treating it like it is not a big deal in the slightest? I highly doubt it. “So they climbed Mount Everest, big whoop. Plenty of people have done it before”. Have you? 5. Talking You're going to do this, you're going to do that – the proof is in the pudding, ultimately. Talking about your goals and what you're going to accomplish is all well and good, but talking time is better spent actually doing. Talking about your goals has actually been shown to make you less likely to reach them, so zip up those chattering lips and dive in. 6. Making assumptions You know what they say about the word ‘assume’, it makes (a word I’ll leave out of this article) out of ‘u’ and ‘me’ . Unsuccessful people are the best at making assumptions without considering other outlets or opportunities. Missed chance after missed chance can put anyone behind or completely ruin something that you poured a lot of hard work into. People are often surprised at what happens if they take a chance instead of listening to that little pessimist inside their heads. ‘Never assume’ is good advice and it is a mindset you should get out of as quickly as possible. 7. Procrastinating This one is obvious, isn't it? It's about the same as loafing, but even worse because it applies to multiple areas of our lives. That big project? Eh, its not due for a week. My dreams? Eh, I'm going to be taking a class to learn how to write in a few months, I can relax until then. Procrastinating isn't the friend of successful people. Many of them had to learn how to either make procrastination work for them or to barrel through it and press on, even with the proverbial sloth demanding you park it on the couch. 8. Naysaying “It will never work. It is impossible, I just can't ...”. That is about when it is time to take a good look at yourself. There are a plethora of people out there that once thought the same thing: you can't get a man into space, you can't find a way for a human to fly, you can't cure a disease. Well, people did what was once considered impossible. If they can defy the entire world, why can't you defy your internal pessimist and get there? Don't tell yourself that it is impossible. In the world we live in today, it seems like impossible is becoming a word that gets weaker every day, and the same is true of your goals. 9. Consuming Fast food, energy drinks, trash TV – your brain is sobbing at the thought. With all the time spent taking in things that are not good for your brain or body, how can anyone expect it to happily balance out and produce the stuff you need to achieve success? Your output should be greater than your input; though you don't have to take the starving artist spiel literally. The point is, your production is where the value is, not the absorption. 10. Quitting “Well, I tried.” Sure, you tried once. That horse is shaking its head and trotting off to find someone who will get back on it. There's nothing necessarily wrong with cutting your losses sometimes. After all, no experience is ever truly wasted, but quitting is the top enemy to successful people. If you believe in something, if you want to find that success, there is no road map. You may very well have to carve your own path through treacherous jungle. If you give up the first time a mosquito bites you then you've doomed yourself already. Success, in large part, is about the human being in the arena. People cheer for them, their struggle and victory, but the person who watches idly and scoffs, having never tried has also never really lived. Mindsets are not set in stone. It is never too late to get started and change your perspective. After all, achieving success is completely up to you – you are the one making excuses and holding yourself back. You are also the one that will decide when it is time to stand up and get back into that arena. 10 Bad Habits That Stop People From Achieving Success 5 Tools We Always Use Which Actually Make Us Unproductive 5 Tools We Always Use Which Actually Make Us Unproductive

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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