One of the main excuses that people use for not investing (or postponing their investments) is the idea that they somehow just don’t have enough money.
Sure, we’re not suggesting that you skimp off your utility bill or your pension fund in order to start investing, but the idea that those $100 extras that you managed to save somehow aren’t enough is just ridiculous.
In this post, we’ll try to prove to you that the lack of substantial capital isn’t really a reason why you’re not investing. This is just your false assumption, one that’s hurting your financial goals in the long run.
So, here are some top reasons why you don’t really need a fortune to start investing and why you need to do this as soon as possible.
Explore the concept of micro-investing
There are some assets, like stocks, bonds, ETFs, and mutual funds, which allow you to invest small amounts regularly with little to no commission fees.
In other words, you don’t actually have to buy a whole coin or a full share. You can buy fractions of stocks, which is great for people who are interested in buying but have limited means to do so.
This doesn’t restrict you in any major way. You can still diversify your investments (by micro-investing into multiple venues).
Even passive income sources can be inexpensive. Sure, you don’t have enough money to buy a rental apartment, but what about a stock that pays dividends? What about intellectual property that will yield royalties?
It’s like with your retirement fund: the sooner you start, the sooner you retire, even if you invest a minuscule amount in your 20s. The same goes for investing and your financial goals.
ICOs, presales, and new coins
At one point, BTC was $1 or $12 or $30, and if you bought it, then you could have made tens of thousands after 2017. Will this process repeat itself? Almost certainly, but not with BTC.
Now, we’re not suggesting that BTC will never rise again. All that we’re implying is that, from this point on, BTC will not grow by thousands of percent. Even if you buy at $20k and sell at $60k, you’ve tripled your money. However, you’re not buying at $12 and selling at $21k.
The only way to do so is to discover a promising new coin and adopt it early (before its price explodes). Some of the cheapest cryptos to buy have the potential to provide a massive return to those who adopt them early on.
Another thing to watch out for is ICOs and presales. These are the absolute earliest instances during which you’ll be allowed to buy crypto. This is when they’ll be sold in massive quantities and at a bargain price. According to Techopedia, investing $100 in Bitcoin today would yield just 0.003 of 1 BTC. The same $100 investment in the Bitcoin Minetrix presale would yield over 7575 tokens. Ultimately, there is little motivation for owning a tiny fraction of one crypto token. This is why cheap cryptocurrencies remain a popular alternative for casual investors.
Ultimately, buying crypto in 2024 is as easy as it gets. The exchanges are simple and user-friendly; most of the time, all you need is a smartphone and access to the internet. Also, unlike before, there are tons of guides and tutorials out there.
Set up automatic investing
As we’ve already explained, the main problem with investing is a psychological barrier that you have to overcome. Sure, you’ve managed to save just $50 this month, so it doesn’t make sense to invest it. After all, what kind of difference will these $50 make? Sure, you can’t get yourself anything meaningful for this money, but you’ll invest more next month when you make more, right?
It’s like going to the gym. Skipping one day is not a big deal, but the real problem is that you’re making a dangerous precedent that you won’t be able to overcome as easily as you think. A day will turn into a month until you quit completely. In the same way, your one missed payment will turn into a few, which will make you develop delusions that, no matter how much you invest, it never makes a difference.
By setting up automatic investing, you’ll completely override this part. This way, the money will be automatically deducted from your account and invested into the asset of your choice. You can even put robo-advisors on the task and eliminate the need to pick your investments autonomously.
In other words, in 2024, all you need to do is make a choice to invest. Everything else can be automated so that it feels less burdensome (even though the financial burden remains the same).
Gatekeeping is no longer as significant as before
In the past, in order to get access to all the information you needed, you actually had to know someone with a lot of experience and hope that they’ll teach you. It was either that or dedicating a portion of your life to working as a broker (or a broker’s assistant) in order to get the knowledge you need. You could also start with a lot of money and test out various strategies until you figure out what worked.
Today, there are so many learning materials available (most of which are not even behind a paywall) for you to explore. This means that knowledge is no longer as big of an obstacle.
Not only that, but you’re not even at a disadvantage compared to much larger traders and companies when it comes to analytics and projections. AI-assisted analytical tools and robo-traders are available to anyone, and they’re not even that expensive. In other words, you can make money even if you can’t afford a broker with a degree in finance from an Ivy League university.
All in all, modern investment and analytical tools act as equalizers.
You have more assets than you think
Depending on what your financial objectives are, it might be possible for you to diversify your portfolio even without spending any money. How come?
Well, there are a lot of valuable items in your own home that are hiding in plain sight.
Chances are that you have some vintage coins, first-edition books, antique jewelry, vinyl records, and even old electronics lying around. While you could, technically, sell them and use this cash to buy more assets, why not keep them as a natural way to diversify your portfolio?
The way this helps you is really simple – by having them, you already have a diverse portfolio without having to spend your already strained budget on alternative investments. Just make sure to start treating them as alternative investments and valuable assets. This means that you should put them someplace safe, secure them, and ensure that they are in a mint condition. Sometimes, even restoration might be in place; just try your hardest not to damage them in the process.
Excuses and procrastination will keep you away from success
While an argument can be made that there are many valid reasons why people are not investing (living paycheck to paycheck, being in debt, or not being interested enough), having too little capital is not one of them. There’s a massive difference between having a bit of capital and having no capital. The difference between these two terms can make or break your financial goals, if you do it right.
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