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Why People Do Not Invest their Money

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@codingdefined
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We Indians have around 140 Lakh Crore money in Fixed Deposit and Indians think that they have invested the money in fixed deposit but the the problem is they are actually losing money to the inflation. The current FD returns are 5% whereas the inflation is around 7%, that's means every year thet are losing around 2% of their capital.

PC: Pixabay.com

Why people can keep their money in Fixed Deposit and not invest, I came up with four reasons and the solution for them.

Investing is risky

The number one reason we hear people say is that investment is a risky affair and they do not want to risk their hard earned money whereas the FD is risk free. People want to be risk averse and thinks investing in the market can be a risky affair. People think that risk is bad and thus investing which has risk involved is bad. We also have some movies which portray that if you invest in the market you will lose money and thus most of the people donnot invest at all.

The solution of this problem is to understand and manage the risk. People have to understand that everything is risk, we are alive by taking risk and thus if we have to create wealth we have to take some risks. If the risk is properly managed then in the long run there will be actually no risk at all.

Good Feeling if the money is in Bank

Most of the people have a great feeling looking at the money in the bank whether it's in saving bank or even in fixed deposit. This is because having access to too much money gives us power. This is different than having too much Hive Power, having too much Hive Power will not only gives us power but also helps us earn more money but it is not the case with money in the bank. Along with good feeling it gives us safety that whetever happens they have the money with them.

This is where having some kind of greed is needed. If you are little greedy then you will not settle for 5% returns a year but will aim for higher returns like 12%-15%. Going above this will again be a risky affair. Earning this much percentage in a stock market or Crypto is not hard.

PC: Pixabay.com

Delay Investing Because of Expenses

A lot of people delay investing because they have to spend on their luxury. Everyone wants to buy new phone, big car, go for luxury vacations because we human prefer instant gratification over delayed gratification. They will think who knows the future, let's enjoy now.

We should think about today along with tomorrow. How much wealth we can create in 10 years if we would have started like 10 years before, the next best time is today. If we start today and who knows if one of our trades becomes 1000x, we won't have to work anymore. Like buying bitcoin 10 years before, so do not wait and start investing today.

Investing is Complicated

This is common problem, but I think with the growing apps the investing is quite easy compared to old days where people have to stand in queue to buy stocks. And investing is not rocket science, we do not need to be expert in market before starting the investment. The mutual fund has made is quite easy to invest in the market.

Investing is not easy but it's quite simple. Even if we spend 1 hour daily we can easily understand the basics of the investment. But even if people cannot understand they can hire an advisor who will take small percentage of your earned profit which is not bad at all.

So I think these four are the main reasons why people do not invest their money, is there any other reasons which I have missed do let me know.