Is it true that investing is only for the rich and wealthy? Do you really need a big pile of cash to even get started? In this second article in a series of Busting Myths of the Stock Market, iBillionaire dives into the details of one of the common misunderstandings of investing to help equip you with the knowledge to be at your financial best.
There has been a long-held misconception that investing is only for the well-connected and the wealthy. A quick look at the price of some of the individual stocks like GOOGL and AMZN and you would be forgiven for thinking that investing is only for the rich!
In fact, in a recent Bankrate.com survey, the main reason why people were not investing in the stock market was because they did not have enough money. Of those surveyed, 53% of Americans said not having enough funds is the #1 reason why they were not investing.
While it is very important that you are aware of the risks of investing and are comfortable in setting aside a small portion of your savings, it’s just not true that you necessarily need a lot of money to get started.
There are many ways to get started without spending a lot, and here at iBillionaire, we want to show you how!
But while these goals are big and daunting, investment plans need not be. With a platform like iBillionaire, you can get started with savings plans with very reasonable amounts, say $50 per month. (Hands up who has spent that on a single night out before…) While $50 may not seem like enough to fund your retirement, long term growth and small steady investments should not be underestimated.
Let’s take that $50 and play out a scenario: Let’s assume that annual investment returns after fees are 5%, and that you increase your monthly contributions by just 2.5% a year. (So in the 2nd year you pay $51.25 a month). After 30 years, what do you think your investment will be worth?
On a cash basis (i.e. you stash your money under your mattress which is, surprise surprise, not recommended), that money would be worth $27,000. But by investing, that investment could be worth well over $57,000. That’s some serious growth!
Not Enough Money: If you think you don’t have enough money to even start investing, think again. With any of the Saving Plans on offer at iBillionaire, you can invest as little as $5 per month! Even if you only have $20, you can start investing in one of these plans and get your foot in the door.
Investing isn’t just about putting all your money on one risky stock in a one-time blow-out investment, as is often seen in the media. As long as you have the patience, time is on your side when it comes to investing. And luckily for you, there are so many wonderful tools available that it makes it easy to invest in a variety of interesting, well-diversified investment portfolios. iBillionaire wants to help ordinary people invest, by providing access to information that until recently, was only available to the elite. And by chipping away by investing small amounts on a regular basis, you can start to build up some big sums of cash.
It just goes to show you that you don’t have to be rich to get started investing. But you do have to get started if you want to become rich!
It’s easier than ever to set aside $50 a month, and doesn’t require you to break the bank month after month. Check out iBillionaire and get yourself on the path to success.