Medicare is faring even worse.
Projections claim that it will be unable to pay medical expenses by the year 2024.
Retirement isn’t looking as comfortable as it did twenty years ago.
Today’s young and middle-aged adults need to be planning for the future.
They need to be saving and investing their money to ensure a long and comfortable retirement.
Why then are so many people ignoring these statistics and not investing their money? Research has provided a number of reasons why. Some of those reasons can be negated through a little time and effort while others may take a different approach to overcome.
1. Lack of funds due to overspending. Many people feel they need to spend 100% of their income for one reason or another. Whether they are happy to have an income or they are compulsive debtors, it appears that there are those individuals out there who spend what they make.
2. Lack of funds due to low pay. Many individuals find themselves unable to invest due to a low income. The whole of their net pay may be going to provide food, clothing and shelter with very little left over for investing.
3. Lack of education. Education in investing is not easily available. Most schools are not including it in their high school curriculum and college only offer those types of classes to business majors. Where does the average person go to find the education? How does the working class person, who has skipped college, find a source for investment education? Can everyone afford their own money coach?
4. They do not trust strangers with their money. With cases like Enron in the news for the past few years, many people have grown leery of using a brokerage to invest their money. They fear for corruption.
5. Uncomfortable with the risk. When you invest your money in the stock market there is a level of risk involved. The higher the risk, the greater the reward, typically. However, many people feel that avoiding the (potential) loss is a wiser decision than the possibility of a rewarding payout.
6. Focusing on debt reduction first. Paying down debt in order to free up more money for investing is a good idea. However, if you have an employer offered 401K with a match, be sure to invest up to the match. Even while paying down debt, you do not want to lose out on the “free” money that is being offered to you.
7. Don’t believe a small amount of money makes a difference. Some people do not invest their money because they believe that what little they can put aside will not make a difference. When, in fact, a small amount can make a big difference.
8. Avoiding the future. For one reason or another, many people choose to avoid the future. They do not plan for it nor do they take the necessary steps to ensure that it is full of the life they want it to have. It could be due to fear, severe procrastination or laziness. Whatever it may be, avoiding the future is going to harm them in the end.
With investing there are just a few things to remember. First, the sooner you start, the better. In fact, consider opening a Roth IRA for your child to help their future become financially stable.
Secondly, start investing with a small amount (Even if you can only invest $25 a week.) now if that is all you can afford. As it grows, reinvest it. Each time you do, the amount you are earning on your return grows, as will your portfolio.
And finally, if you have thought about your future, and you are concerned about how it is going to play out, seek out the information you need. The internet is a wonderful place to learn information. It is an excellent starting point with low risk and little intimidation.
Investing can be simple to do, and with a little research you can find a reputable online stock broker to handle your investments to help them grow even quicker.
This article was written by Jessica at Everything Finance. Everything Finance is a site about just that, everything related to finance. You can get information about investing, saving money, shopping, blogging, and making money online.
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