The rich know how important it is to have their money working for them at all times. They put their money in investments such as real estate, stocks, bonds, and mutual funds so that their money will make them more money. They rarely have “dormant money”, which is money just sitting around, not earning interest or some sort of return. So if you want to become rich, you need to make your money work hard for you by investing it.
Most people are afraid to invest their money. Their primary fear is that they’ll lose it all. They have worked so hard to get the money that they have, they don’t want to take any risk of losing it. So instead of of investing their hard-earned money in stocks or real estate, they keep their money in a checking account or a very low-interest savings account. They know there isn’t a chance of losing their money if they just keep it in those accounts. While that is true, their money won’t grow if it is in those accounts.
Another reason why people are afraid to invest their money is lack of education. While I was in high school, I wasn’t taught how to buy stocks or how to save for retirement. I wasn’t even taught how to balance a checkbook. I had to teach myself how to buy stocks. A lot of people are poor money handlers because of their lack of education. If you don’t know how to fly an airplane, you’re not going to rent an airplane and give it a try. The same goes for the stock market. If you don’t know how to pick a good stock, then you probably aren’t going to invest in the stock market. Because a lot of people don’t have the knowledge of investing in the stock market, they higher someone else to invest their money for them.
If you are a beginner investor, there are a couple things that you can do to feel more comfortable about investing your hard-earned cash. The first thing that you can do is set aside a sum of money that you feel comfortable investing with. $1000.00 is a great sum to start with in the stock market. You would need more if you are considering investing in real estate.
The second thing you can do is educate yourself. There are thousands of books about investing in the stock market, investing in real estate, and investing in bonds. Visit your local library or shop around online. There are also thousands of free websites, like this one, that offer articles and advice about investing your money. Before I started investing in the stock market, I read “Stock Investing for Dummies
Don’t let the fear of losing stop you from being a winner.