Are investment myths getting in the way of building wealth? Making that first move and investing your money can be scary. Sadly, many individuals are scared because there is a misconception they’ve been led to believe over the years about investing. 

So, as we start a new year in a few weeks, let’s focus on building wealth by investing more in individual shares, ETFs, and available but regulated funds. I know I will. And, we can start by debunking investment myths that are holding you back.  

Investing is Like Gambling

I remember someone once asked me the difference between investing and putting their money in betting companies. To them, the two were the same, and betting looked like the best form of “investing” for them. 

Listen, these two are totally different. Yes, you can lose money investing in the stock market, and you could feel some thrill when the market is in your favor. But they are not the same. 

Betting has a binary outcome where you either lose or win. But in the long run, the house always wins. On the other hand, investing is more of a long-term strategy that helps you build wealth. It needs patience and not timing the market for you to benefit from the appreciating value of a company’s shares. 

Second, you can minimize your risks with investing by diversifying your portfolio with different asset classes. Even if you were just interested in shares only, you could still diversify by buying shares for companies in different industries. 

Investing Is For The Rich

Gone are the days where you needed a personal broker on your speed dial, a thing only the affluent could afford, to invest for you. Thanks to fintech, you now have access to stock markets in the palm of your hands, literally. Even in Kenya, investment firms have online platforms and apps that allow you to invest from the comfort of your home. 

Most importantly, you can start with as low as $10 (Kes. 1,000). Just open a CDS account, do your research, and choose your preferred shares. Since you need to buy a minimum of 100 shares whenever you’re making a purchase, you can start with companies you like and understand but have lowly priced shares prices you can afford. 

Here’s your beginner’s guide to investing in Kenya’s stocks. 

Plus, you can now even invest in foreign markets. For instance, Standard Chartered has investments options where you can invest in mutual funds in foreign markets ( I should review my experience soon). Hisa technologies also just unveiled an app, Hisa app, that gives investors access to stocks and ETFs in the US. 

See, as long as you have a smartphone and a few coins to spare, you can start investing. You don’t have to be a millionaire to do it. 

The Market Is Volatile, And You’ll Lose Everything

Yes, the market is volatile. You saw how markets across the globe crashed when Covid-19 hit. But here is the thing, markets always recover. It might take a few months or years, but they always recover. Plus, this might be the best time to buy rather than sell.

One thing I loved about The Path: Accelerating Your Journey To Financial Freedom by Peter Mallouk With Tony Robbins is the first chapter that encourages you never to stop investing because the market is in turmoil. It recovers, and every time it comes with better returns. Plus, we live in an era where technological advances provide more investment opportunities than ever before. 

“Throughout history, no matter how bad things have appeared, the top US companies (the S&P 500) have ultimately found a way to not only make money, but to make more money than they did before. Every single time. And, as always, the stock market continues to follow the earnings.” ~ Peter Mallouk

This is not just a phenomenon that happens in the US. It happens with financial markets in other countries. 

I am trying to say that there will always be some volatility in financial markets. This is the risk you have to bear when you decide to invest. But, if you are willing to keep your emotions in check and invest for the long haul, you will enjoy the fruits of investing. 

It Is a Quick Way To Get Rich 

Investing will undoubtedly help you build wealth. But don’t think this is something you will achieve overnight. Let me reiterate that anyone who approaches you with an investment product that offers quick and high returns is just scamming you. This is one of the telltales of spotting an investment scam. 

All those stories you see on social media of people flaunting quick riches they made from some investment always come at high risk. High risks must accompany every investment with high returns. Plus, long-term investors are always the winners. 

Has any of the above myths kept you away from investing? If you are ready to begin creating wealth, it is time to start moving away from saving only and start investing. The above is nothing but myths and should not keep you away from getting a share of the market.