5 Myths About Investing, Debunked.
#RealTalk
7 mins read

5 Myths About Investing, Debunked.

Basically, don’t believe "el chisme." Investing is easy.

We’ve all heard the bad rap about investing our money, right? "Too much risk” this and “too confusing” that. Believe it or not, investing is way less complicated than Jennifer Lopez trying to explain what went wrong with each of her marriages.

 

Simply put, investing these days is as easy as choosing a ripe avocado. Here are five myths that you need to clear out off your mind.

 

Myth #1
Investing is way too risky. It’s unpredictable!

 

La Neta
Well, sure — investing involves risk to a degree. But let’s keep it real. That new taco spot you’ve wanted to try also has some risks. That won't stop you. Why? Because you know the endless benefits of finding a solid spot. It’s the same with investing.

 

Putting all your money in one single investment is risky but there are ways to lower that risk. Diversification, which means spreading your money over different investments is very important. Imagine you order a variety of your favorite tacos: asada, al pastor, lengua, carnitas, etc. The more options, the better. Who else is hungry?

 

Myth #2
You can make more money pegándole al gordo! (Not your uncle — the lottery, duh.)

 

La Neta
The odds of winning the lottery are super low. By all means, don't stop dreaming. But listen to your abuelita, mamá, maybe even your significant other, and invest money. These days you don’t need a lot to start. Remember that de poquito en poquito se llena el jarrito.

 

Here’s an example: You spend $5 a week on lottery tickets for ten long, arduous years. That’s $260 a year and a total of $2,600 after ten years. Will you hit the lottery? Maybe, but your odds of winning are about one in 292 million. Now, let’s say you decide to invest that money instead. With an expected return of 6% a year, by the end of the same ten years you could have $3,530 in your pocket. Think of what you could do with all that moolah!

 

Want to start investing?

Start here

Invest as little as $5 a week.

 

Myth #3
If you truly hate math you can’t invest. Oh, and you must hire a financial advisor or broker to help you. (That probably sounds like bad stomach pains!)

 

La Neta
Investing money won’t hurt you in the feels the way running out of data (with no Wi-Fi nearby) does. Trust. Back in the day, only snazzy investors had enough money to hire professionals. These days, technology like Finhabits makes the process of investing a lot simpler and affordable. How? They said goodbye to the middleman and his unnecessary commission.

 

Remember when you stopped calling travel pimps for plane tickets and started buying them online, all by yourself, like a badass? Well, now Finhabits lets you invest online, too. All you need is to select a goal that inspires you to set money aside, a few extra bucks a week, and some time. Your stomach will rest easy, and you’ll save on the sal de uvas. Win, win.

 

Myth #4
Only peeps who don’t have car payments or mortgages and who have kids that are older can invest. I should probably wait till I fit the bill, right?

 

La Neta
Not true. No matter your age and how much you make, now is always a great time to start investing. ¿Por qué? Because camarón que se duerme, se lo lleva la corriente. Starting early, even with a few bucks a week, gives your money more time to potentially grow.

 

Also, we’re pretty sure someone famous once said, "you haven’t lived if you haven’t invested” or something like that. Get in on the action early on and your money will feel like a VIP, front row at a Maná show. It’s a great feeling, amirite?

 

Myth #5
Investing is for rich daddy’s boys who have extra cash to play with. Some people are not exactly ballin’ these days, you feel me?

 

La Neta
Yeahhhhh, but no. That was true maybe twenty years ago. Investing was accessible only to those with loads of cash. Today, Finhabits allows you to start investing with small amounts. How much, you ask? Like around what you spent on those tacos we talked about earlier. Seriously.

 

Curious about getting into the habit of investing? Check out Finhabits.com.

 

 

Was this article useful?

Yes
No

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Finhabits to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Finhabits, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.

Want to start investing?

Start here

Invest as little as $5 a week.