12.5.12

The 3 reasons why people postpone their first investment plan.

Investment-postpone-reasons-moneyjumps.com
Are you a person who wanted to make profitable investments and is not able to take a decision?
Many people like you postpone their first serious investment indefinitely. 
Even though they wanted to do it now, they are pulled back because of various reasons.
Let us see what stops people in taking decisions on their investments , which if properly managed, can take them to financial freedom.
Reason No # 1 : Ignorance about financial matters.
Ignorance or lack of knowledge in financial matters and investment opportunities are making people to postpone investments.
It is a big fact that many of the young educated professionals have little or no knowledge of terms like shares, mutual funds, inflation,  budgeting, compound interest etc.
Many people don’t know what is the real meaning of asset and liability. They think their Home and the car for their own use are assets.
The lack of proper knowledge on money/ investment related things hold them back from taking  decisions on these important matters.
As current investment vehicles  demand basic financial knowledge ,  the primary need for people is to acquire as much financial and investment knowledge as possible.
How to acquire financial knowledge
I suggest you please do the following for acquiring good knowledge on financial matters :
  • Reading good books on personal finance, Investments and accounting .
  • Regularly read financial newspapers and magazines .
  • Follow good financial websites and blogs like MoneyJumps.com.
  • Participate in training classes, seminars or programs on finance, accounting, Investments and  entrepreneurship.
Reason No # 2: Fear of losing money
Please be aware that Knowledge is only potential power. When we take  action on that knowledge only we will have the real power.
The next major reason why young postpone their investment plans is the fear of losing their money.
Actually not only you,  but all will have this fear of losing money when they think about investing it somewhere.
No one will like to loose their hard earned money.
But postponing investments for the fear losing money is not sensible and is suicidal.
How to manage the fear of losing money?
Please understand there is no sure shot- 100% guaranteed returns-investment in this world. Every investment have its own risk and danger of losing money.
Please remember all great investors also had the fear of losing money at the time of their investments.
But they properly studied their investments and manage the fear by doing  everything possible to reduce the risk and ensure impressive returns.
People especially young should manage their fears by learning maximum about the investments and come up to invest in vehicles which suits their requirements, age and risk taking capabilities.
If you need to learn to ride  a bicycle you need to manage the fear of falling. If not you will never learn to ride. Same is the case with investing. Failures  and money loss can happen. We need to take it as part of learning and and
Please remember the high the risk, the high will be returns.
Reason No # 3: Lack of Interest and false sense of security
I am earning good amount of money”,
“My company is taking care and fullfilling all my needs ”
I am having a secure job”
The above are the  common answers I get when we discuss about the need for investing with young professionals. They postpone or even never think of investing.
Today many of the young are getting plush jobs in good companies with good salary and perks.
Companies make it a point to take special care of the young employees by giving them good food, recreation facilities, leisure trips and fun activities.
Young employees gets bowled over by all these and develops a false sense  of security on the job and company.
Actually please be aware that no job is secure.
The dynamics of economics can change for any company, any state and for any country, reflecting on the respective people’s economy also.
There is plenty of proof for this in the history.  
Please note it is more important how much money we keep, than how much we earn.
I know young  people who earn 25000/- per month and save 10000/- out of it. And I also know people earn 100000/- , spend on their high lifestyle and  save nothing.
you relieve your false sense of security about your status and learn to keep as much money you can for a tougher tomorrow.
So if you are serious about having a good life , take steps and invest on your financial education today. Learn to take calculated risks. learn to manage your fears, Learn from your failures.
And also learn keep and pay yourself.
Don’t postpone your investment plans.
All the best!
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