The Motley Fool tries to answer a question many people may have in “Am I Too Broke to Invest?” If you are employed and have an emergency fund, you are in a position to invest. And investing doesn’t mean throwing tons of money into the stock market. If you are not ready to get into the stock market, you can invest in an employer-sponsored retirement plan.
What may be getting in the way of investing?
Fear: You can learn and ask questions about investing. Either on your own or with the help of a Fee-Only financial advisor, find time to learn and grow in confidence about investing and stocks.
And if you worry that you will lose money in the stock market, The Motley Fool reassures readers that it makes sense to worry over potential losses, adding that losing money is part of the process. It is sticking with it over time that will allow you to make up for any losses. It is also important to not invest money that you think you may need in the near future.
(Perceived) Lack of resources: The idea of not investing money you might need in the near future prevents many people from investing because as far as they can see they are going to need all of their money now and in the near future. This is where a little sacrifice comes into play. The article includes a chart showing what happens when you invest $10 a week in an IRA. If you can find a small amount to put aside, you can invest.
The article also examines “imposter syndrome” with regards to investing: some of us don’t want to invest because we think investing is for “rich” people and we don’t consider ourselves rich. People at all income levels invest. Even a saving account that earns interest is a kind of investment.
The Motley Fool offers this encouragement:
“You’ll probably never feel like you have enough money to invest. There’s always going to be somewhere else to use that money…stick your toe in the investment water and get ready to swim. Once you realize how much your investments can help you meet your financial goals, you’ll wonder why you ever waited.”