3 Things About Investing Millenials Need to Stop Listening To

There are many people who are scared to invest their money. That is okay. Playing it safe is better than losing money in an investment tool you know very little about. I am not here to tell you to invest your money. I am simply here to tell you not to turn a blind eye to the differnt investment tools just because you don’t know anything about them. Educate yourself, and look at them more than just a tool to lose your money, but as tool that you can utilize to grow, sustain and create wealth. There are many mistakes millennials tend to make and one of them is not investing early and often. I am here to debunk 3 myths about investing, to help you better understand the opportunity they present you.

“Investing Is Like Gambling”

False. Bears,Beets,Battlestar Galactica. This is only true if you are picking companies to invest in out of a hat or investing in Apple just because you own an iPhone.

The truth is, investing is not gambling, if you know what to look for. For example, when investing in the stock market, I like to tell myself that companies are inherently good. This is because companies are created with the idea to generate revenue, and to stick around for a long time. Imagine you created a company and said, “I am going to create this company because I want it to fail.” That would be nonsensical.

Instead of automatically thinking companies will fail, do a little research. Each public company has an investor relations page and an Annual Report within this section. The annual report will tell you:

How much money the company is making (Income Statement aka Statement of Operations)

How much debt and money does the company have and owe (liabilities) vs. how much cash and other items of value does the company have (assets) (Balance Sheet aka Statement of Financial Position)

Where is the company’s money going (Cash Flow Statement)

This will give you a general idea about the company and how well it is performing. It goes without saying your research should be more than just looking at these items. If we are comparing this to gambling, this is like looking at one of your opponents cards she/he has in their hand during a game of poker.

You Do Not Have Enough Money To Invest

But you have enough money to buy that 30-rack from Vons. Rob Kiyosaki once said “Pay yourself first.”

*If you are wondering Rob Kiyosaki is, do yourself a favor and read Rich Dad Poor Dad. It talks about the power of investing, especially when you are young.*

You can start with as little as $50. I did. I started using Robinhood to automate my investment into the stock market. Meaning that every two weeks I would have an auto-transfer from my checking account to the Robinhood account. I learned to pay myself. I would invest in ETFs such as USO and also some smaller companies like Weight Watchers (WTW). with a small investment of $500 I was able to quadruple my investment. I did my research, I let the $50 accumulate every two weeks (as small as it is), and I let my money work for me. I continue looking for ways to invest but I never let the notion that I don’t have enough money to invest stop me, you shouldn’t let it either.

You Are Too Young To Invest

This is a great problem to have. You are too young. You are never to young for anything. Except consuming beer, and having student loans under your name, I suppose. Investing does not just include the stock market, funds, ETFs, bonds, or real estate. It also includes your mind. Your mind is your greatest asset. If you start learning about finance, and the tools you are able to utilize to invest in and grow your money and ways to save money, then you will be on your way to a stable lifestyle. At Lite we believe that the financial education is like working out, if you work out every day you will see results. If you educate yourself on a daily basis about personal finance, then you will see results. Results could include things such as, increases in credit score, return on investment, increased savings account, and more. Educate yourself early, and often.

Stop listening to the noise. You may have people around you who tell you the risks associated with the stock market, or other investments but they have never invested any money. Stay educated and stay on top of your financial health. Continue to exercise that mind of yours and you will see results!