5 common excuses people make to put off investing and how to overcome them

Embarking on an investment journey can be a struggle.

The instant gratification from spending naturally prevails over the delayed satisfaction from setting money aside for the future. When you’re young, there is an urge to justify procrastinating your investments citing the much touted yet fallacious YOLO lifestyle.

But scratch the surface and beneath the promising millennial mantra lies the harsh reality of life. The earlier you realise that there is no circumventing the need for financial security, the better it is. Being financially stable by following a regular and sustainable investment plan allows you to not only meet your financial goals but also comes with the promise of a comfortable retirement.

There is no reason to believe that you are fated to live off meagre savings forever. Provided you are willing to overcome your excuses for putting off investing. But what exactly is it that people fear? What exactly is it that makes people want to delay an important life decision? What really is their excuse for not wanting to save their hard-earned money for a better future?

Here are some common excuses people cite for postponing their investments. Time to overcome them.

I don’t have enough money to invest 

This is one of the most common excuses to avoid investing. People don’t invest enough time in drawing up a budget and end up with no money at the end of the month. If you’re happily watching the month go by so that you can save whatever you are left with at the end, you’re doing it wrong.

Saving money is like paying for a future version of yourself. Pay yourself before you pay for your spending. Get into a monthly habit of investing by choosing instruments that compel you to set money aside through Systematic Investment Plans. To know how much you can realistically afford to save, track your spending, and every once in a while, allocate the money you intended to splurge for investing.

I don’t know where to start

Despite being products of the information age where access to information is no more than a click away, people use lack of knowledge as an excuse for not investing. The real reason, however, is that the plethora of investment options, far from helping people choose, deter them from starting their investment journey.

Investing is often made to look more complex than it really is. You look like an amateur in the face of technical jargon and complicated financial concepts and fear making the wrong choice. But don’t forget that you can’t learn to swim without getting wet. You step into the water and familiarise yourself before you ultimately get to the deep end. Don’t get overwhelmed by the data out there. Start investing.

I’m afraid to lose my money

You are not alone. Everyone fears losing their money. The stock market is a volatile place, particularly for a first-time investor.

The trick is to diversify your portfolio and carefully spread your investments over the short, medium, and long terms. If you have built a portfolio that you truly believe in and are willing to persevere, you will be shielded from market volatility and benefit from the power of compounding over a period of time. In short, don’t hesitate to invest because you might lose your money. Just invest consistently and hold on.

I missed the investment bus ­­- it’s too late now

Always remember that the best time to invest is yesterday. Which is to say that investing is always a good idea. Time is never a factor.

If clearing your debts and fulfilling your financial responsibilities has prevented you from investing so far, it is never late to start your wealth creation journey. Markets are time-agnostic. So, equip yourself with the right tools and knowledge, and make your first investment so you no longer miss out on opportunities to grow your wealth.

Just take the first step

You will always have enough excuses to not invest, but you may not always have enough money. As you see your prime investing years pass you by, these excuses will seem increasingly pointless and leave you with a huge sense of regret. Draw up an investment plan and go the extra mile to put your hard-earned money to good use. You owe it to your future self.

Shlok Srivastav, Co-founder & COO, Appreciate

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Updated: 26 Oct 2023, 10:02 AM IST