The Five Myths About Investing

Investing is an interesting field. Not only because you make money out of it, and that money can do great things, from buying big shiny objects to letting you go on that holiday that always seemed too expensive. That’s also true about gambling. I speak of something entirely different, however.

What is interesting about investing is that anyone can do it. It doesn’t take rocket science to do it, and it is quite likely that rocket scientists don’t do quite as well as an average person on the street. And because anyone can do it, we tend to believe that people with money can tell us how to do it. The problem, however, is that we believe expert advice is the only way to become successful investors. Often, advice devolves into myths that will damage you more if you follow them blindly.

Invest early in life, and take risks. Otherwise, you’re finished

This is obviously what they will tell you with a story like this. Amit saved for ten years in his 20s and then stopped. Baldev started saving at the age of 30 and saved for 25 years, but Amit was still ahead. So save as early in your life as you can!

This is balderdash. Mathematically, it is correct, of course. But in reality, things are often different. In my younger years, I would only make enough money to about get by – and I had barely anything left to save; if I’d tried to save then, I would have lost some of the best years of travel, friendships and food; and saved it for what? Growing old when you can’t travel…

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