What you’re missing to start investing and attain financial freedom

The personal finance app Twine recently completed a survey asking respondents: “How much money do you think you need to start investing?”

The responses were shocking.

According to the survey: “46% of millennials believe they need at least $1,000 to start investing. Another 17% believe they need at least $10,000 before they’re able to invest.”

That means over 50% of the respondents thought they didn’t have enough to start investing.

Whether we’re talking about $100, $1,000 or $10,000, the amount doesn’t actually matter…

What matters is the mindset.

Here’s what you’re missing to start investing and attain financial freedom

The biggest issue with not thinking you have enough to start investing is that you will likely never perceive any amount as being enough.

Today $1,000 isn’t enough… tomorrow $10,000 won’t be enough.

Why is that?

The problem is NOT a lack of money; it’s a lack of confidence

And believe me, I get it – investing is scary intimidating.

BUT there’s no doubt that investing is key to reaching financial freedom. The truth is a lack of confidence stems from a lack of financial IQ.

It won’t matter how much money you have…you’ll always have that fear of losing it if you invest it because of a lack of financial education.

There is no amount of money you need to start investing.

I started investing with less than $900 and I turned that investment into $4,584 in under 6 months with virtually no work. Not a fortune by any means but better to get the ball rolling than to wait around.

The key takeaway from this study is that all of us want financial freedom but we struggle to have the confidence to attain it.

Stop worrying about how much money you need and start worrying about gaining financial knowledge.

By educating yourself about money, you’ll understand how to find investments that will actually make you money.

The reality is that it’s not hard to get started investing.

You simply have to have a passion for learning and be willing to put your learnings into action.

10 Ingredient Recipe successful investing

Why is it important I learn this stuff?

Can’t I just give my money to a financial planner or a broker?

Well my friend, if you actually want to make money, you’re gonna have to take matters into your own hands.

Sadly, a lot of “professionals” are just salespeople who don’t really know what they’re talking about.

Did you know a broker makes a commission on each transaction you make?

More often than not, they’ll “advise” you to sell or buy because they make money when you do. Since they’re “professionals” you trust them but what you may not see is that each transaction costs you money… On top of those unnecessary costs, you now have yourself a tax obligation… but that’s not your broker’s problem…

Let’s not even get into whether the investment recommended to you was even good to begin with…

I’ve seen it time and time again.

Whether I’m talking to a small business owner about tax advice they received from a “tax advisor” which turned out to be entirely the wrong advice to give…Or hardworking women who were told to put their savings into a 401(k) by a “professional” …

Side note – if you’re curious why a 401(k) isn’t a smart move, check out this article.

I’m not saying you should never get professional advice but be selective. The best way to do that is not to trust professionals blindly. That means understanding a little about what’s going on.

Most people understand reading, writing, and arithmetic. But those who are financially successful also have a different kind of education—financial education.

Financial education is the foundation for building wealth

You know you are financially smarter when you can tell the difference between:

  • Good debt and bad debt
  • Tax payments versus tax incentives
  • Good expenses and bad expenses
  • The advantages and disadvantages of stocks, bonds, mutual funds, business, real estate, and insurance products, as well as the different legal structures

If you’re interested in becoming financially literate:

Are you an investor? What’s the #1 obstacle in your way to start investing?

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