#1 - I need a lot of money to invest
There is absolutely no reason why only people with millions in their bank accounts should invest in the stock market.
Trading shares is now so simple and inexpensive that anyone with a few thousand dollars can enjoy investing. In fact, it’s best to start small, so you can learn from your mistakes without spending too much money. Investing is for everyone.
#2 - The risk is too high - I don't want to gamble with my savings
It is true that stock investing has many of the same characteristics associated with gambling, for example. poker. In both situations, participants try to estimate a probability and size of gain and loss for a given decision (poker hand or stock purchase).
But stock investing is not risky if done wisely. If you invest based on the company’s fundamental value, long-term (min. 5 years) and spread your investments across a range of companies (min. 8) and asset types (stocks, cash, bonds, etc.), you have effectively limited the risk of permanent loss of your funds. The only risk that should matter to the private investor.
#3 - I don't have time to learn about investing
Investing can be both complex and time-consuming. But it doesn’t have to be. In fact, you can simply set aside a fixed amount of money each month and invest it in a few index funds. You’ll end up with more wealth than the vast majority of your friends and acquaintances.
If you don’t have the time or interest in finding and analyzing companies yourself, I’ve written a short guide to help you with a minimum of effort. Read the guide here.
