Excuses Women (and Men) Give for Not Investing – Part 1

by financialmom

in Debt, Financial Plan, Investing, Money

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We know exercise is good for us.  Yet we come up with all kinds of excuses not to do it.  We also instinctively know investing is a good idea, and we still manage to give many excuses for not being an investor.   Let’s take a look at some of the more common excuses.  Some are pretty creative :) .

I Have No Money

We are not talking about taking food out of your children’s mouths here.  What we are talking about is the fact that you are not making investing a priority in your finances.  Investing needs to come right after your charitable giving, your emergency fund, and getting out of debt, not the last thing you do only if you have any money left over.

Here’s another variation on the same theme – I Don’t Make Enough Money To Invest. Again, what you are most likely really saying is investing is just not a priority for you. If it was, it wouldn’t be at the bottom of the barrel to be looked at only when you happen to have money left over.

If you truly have no money to invest, the truth of the matter is probably this – I Am Spending More Money Than I Make. If this is the situation, you have to get your spending under control before you invest. Start tracking your spending for a month or two, take an honest look at where you are leaking money, and create a spending plan that includes investing.

I have also heard this – I Can’t Pay My Bills As It Is – How In The World Could I Invest? Why can’t you pay your bills? If you are in a special predicament due to circumstances outside your control, you may have to suspend investing for awhile.  For the rest of us, see the paragraph above.

How about this one – I Have Too Much Debt To Even Be Thinking About Investing! If you are up to your ears in debt, I agree you have no business investing. Get the debt paid off first – that’s the best use of your money right now.   Chances are you have credit card debt, and you are paying yourself 18% or more when you get rid of it.

And finally, in the I  Have No Money category, is this – My Credit Is Poor/I’m Bankrupt/I’ll Never Get Ahead Anyway, So Why Bother? Please take steps to improve your situation. Even if it takes years.  Set financial goals for yourself, and work hard to achieve them. The sense of accomplishment will be amazing, and you will be much happier in the long run you didn’t give up.

Investing Is Too Risky

When I hear this comment, my response is always to ask, What is too risky? Usually there is no answer.  If you are not an investor, and don’t know what you would be investing in, how do you know if it’s too risky or not?  This is a blanket excuse for not educating yourself.  All investments are not too risky.  And risk appropriate for you may not be the same as the person you’ve been talking to, or the media you have been watching, for you to come to this conclusion.

Another variation on this theme is, I Might Lose It All. Make no mistake, there are no guarantees in investing.  It is highly unlikely you will lose it all, unless you have your entire life savings invested in one company stock. You could have lost your retirement savings, if you were an employee of certain companies that have gone bankrupt in the last 18 months.  This is why diversification is so important, and you need to be very careful with your 401k plan choices.

I have also heard this – I Might Lose (Any) Of It. If you can’t sleep at night because you are watching too much TV or other media, then don’t watch it!!! Unless you are retired and currently drawing money out of your investments, you should not be losing sleep over fluctuations in the market.  This is where good financial advice comes in, so you know what to expect from your investments, and will not panic when the market is volatile.

And finally under the Investing Is Too Risky category - I Tried Investing Before, And I Lost a Bunch Of Money, So I Will Never Do It Again. Seriously?  You had a bad investing experience, and so you will never invest again?  Did you ever stop to find out the reasons for your bad experience, so you could learn from it, and not repeat it? Did you never get back on your bike again after you fell off of it?  Persistence is what makes winners.  Find out what happened, and don’t do it again!

Oh yes, there’s a lot more – stay tuned for Part 2 of Excuses Women (and Men) Give For Not Investing!

New Profile Pic 2599R Excuses Women (and Men) Give for Not Investing   Part 1Pamela Otten is CEO of Pamela Otten LLC, a Registered Investment Advisor. She loves to work with women business owners and entrepreneurs, and women in transition due to job change, death, or divorce. Pamela will help you set and reach your financial goals, educate you to understand your investments, and teach you how to do more charitable giving. Pamela is a Qualified Kingdom Advisor (www.kingdomadvisors.org), trained and committed to integrating biblical principles with her investment advice.

cc smallest Excuses Women (and Men) Give for Not Investing   Part 1Photo Credit – Dawn-Pink Chick

Financial Planning, Investment Advice, and Investment Management provided through Pamela Otten LLC, Registered Investment Advisor.

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