Money Myth Monday – July 15th, 2019 Quote – “You have to be rich to invest.”
Hmm, let’s find out if this one checks out. 👎🏼👎🏼👎🏼 Let me check the disclosures on all of the investing websites like Vanguard, Fidelity, and E-Trade. Yep, they agree. How about my company’s 401k servicer? Yep, they agree.
You DON’T have to be rich to invest!
It was funny, the other day I was talking to a good friend of mine about investing. He had just purchased a brand-new truck (cost him $35k) while he is on a teacher salary. He didn’t talk to me prior to purchasing the truck because he knew I would have told him it was a stupid idea.
I was most disappointed in this statement he made as he was trying to justify this insane purchase to me, “Man, I will never be rich like you. What is the point in investing since I am not rich? It is not like it is going to ever make a difference in the long term. I will start investing when I become rich.”
Hmmm…carry the 1…add the 2…yep, that makes 0 sense! I was extremely disappointed after he made this comment. You do not have to be rich to invest! That is a simple fact. You can go and open an investment account with Vanguard in less than 5 minutes and begin investing as little as $10 in a taxable investment account today!
If you don’t start now, it will be even more difficult to start after you have a little taste of money. So, don’t make the mistakes I made growing up. I had no idea about this incredible community of like minded individuals. You can start today! Prior to graduating college! Without any bachelor’s degree!
Looking back, if I were to do the below items, I would be even further down the path to Financial Independence than I am today:
- House hacked in college with my parents purchasing the property with me on the loan
- Invested in Index Funds instead of putting keeping cash in my bank account earning me .03%! At least put cash reserves in a High Yield Savings Account (HYSA)!
- Act! Having an idea is great but having an idea you act on is even better! Set goals for yourself and hold yourself accountable to those goals. If you need to, which I did and do, find yourself an accountability partner! If you can’t find one, reach out to me and I will
- You don’t have to be rich to invest. You can start an account today with Vanguard, and/or other providers, and begin investing in low cost index funds today.
- Have a growth mindset. We live in a world of abundance. There is plenty out there for both you and me!
- There is no better time to start than now. Even if it is a small amount. Every little bit will add up over time. Ever heard of compound interest? 😊