Even if it is hard to believe, there are many individuals that do not invest their savings to increase their wealth.

As I always say, if we do not gain money through time, we are losing it. Inflation is always there to get you. It is important to save and invest your money because we are going to need it at multiple points in our lives.

From an emergency like going to the doctor after an accident to something complementary like going on a vacation. Well, let’s explore the different excuses people say to avoid investing.

The first and most common one is “I do not have any money left after my expenses to invest.” This must be true, I do not challenge this statement, but have you checked your budget?

Do you know how much you spend in: rent, bills, food, transportation, and other things? I am sure that once you make a budget and track all your expenses you will find out how much unnecessary money you are spending. Are you buying from the cheapest supermarket?

Are you eating out too often for your budget? Are you paying for coffee every morning instead of doing it yourself? Are you turning everything off once you leave home? I think once we understand our expenses from top to bottom, we will comprehend that we are wasting money which instead could be used to make money; our economic status does not really matter.

The second most common reason why people do not invest is “I do not know anything about investing.” Again this must be true, but there is an easy solution: ask, study, explore.

Nobody is born knowing how to do stuff; we all have to learn it beforehand. And even if for some reason you are too busy to study you could lend your money to an investment manager, who is a professional that understands about investments and can probably maximise your return better than you do.

This Investment Manager or Adviser will most likely have no problem explaining how your money will grow. Therefore, this again is not a valid excuse.

The third most common reason is: “I am not interested.” You are not interested, are you serious? You don’t like money? You don’t like a better life style? You don’t like a better house, car, vacation, food? Money is king. This excuse loses reasoning by its own weight. Everybody loves money. 

Additionally, the last most common reason is: “I don’t invest because investing is too risky.” And again this is true but so is driving a car, playing sports, taking a plane... We need to accept that there is risk in our lives.

Almost nothing is certain, the only certainty is that we are going to die, taxes are going to be there, and inflation is going to decrease our purchasing power. Uncertainty is there, but it can be controlled or minimised.  

Therefore, I hope that after going through the most common excuses for not putting money aside, I convince you that saving and investing is important and that you should start doing so today.

Think about retirement and all the things you could do then, compared to the things you can do now with your current balance.

Disclaimer: This article was issued by Bernardo Serrano Vazquez, Investment Management Support Officer at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.