Don't Be a Statistic, Invest Your Money

Have you ever seen the documentary about how millionaires made their fortunes?

If not, let’s be 100% clear…

It’s not because of the salary they earned. But because of their investments.

Most millionaires are people who’ve been able to set aside and invest a certain amount of their money regularly.

And when they invested their money, they saw how their wealth and net worth increase over time.

Without much effort on their part.

But don’t be a statistic because many are afraid.

Afraid of taking risks when it comes to investing their money. And instead, choose to put their money into their savings accounts or safer investments like Bonds.

Yes, this is a safer play.

But one that provides a zero return. Your money won’t increase as much as it would investing in stocks or real estate.

And investing isn’t hard.

It requires some money, a little effort, reading, YouTube, or Google. And it’s one of the best things you can do for your future.

Because your money is either growing or being devalued by inflation.

So don’t be a statistic, and start investing your money now.

Table of Contents

What is Investing?

The word “investing” can be used as an umbrella phrase for many different meanings.

Because your time or effort can also be invested.

But when I say “investing,” I’m talking about the different ways you can use your money to generate even more money.

You’re “lending” some of your money as a needed resource for a certain product or business project to grow or get off the ground.

And once in “gear,” it’ll create even more money from the money you let them borrow.

Then… a part of this new money generated by that asset or company will return to you as part of the initial money you contribute with.

But also in the form of profits (more money on top of the money you invested) to increase your own wealth.

And this is all done with a little effort on our part.

What The Statistics Say

A survey back in 2019 showed about half (47%) of all North Americans aren’t investing in anything.

Even though today there are so many different investment options.

The same survey provided the following statistical data:

60% of people start investing shortly before the age of 45.
24% of the people who have invested, have done so with less than $500.
Only 14% of the people who have invested sought the help of a professional advisor. In fact, 65% don’t use any type of counseling.

The survey findings show most Americans are clueless investors. With a low level of success when it comes to investing money.

So don’t be a statistic, learn how to invest your money and take action.

The Difference Between Investing and Saving

Although investing often requires having some money saved first, this isn’t always the case.

As many investors use someone else’s money.

Which is very risky.

But this means it’s perfectly possible to separate both terms:

While saving means “securing” a portion of your money. Often in bank accounts or funds that pay a percentage of interest. You aren’t really actively using that money to make more money – which your bank does.

Investing involves actively looking for the different investment opportunities that are available in the market.

And knowing how much risk we can each handle without losing all our money.

While trying to get more and more money. And this is why I recommend investing in index funds.

You’ll get a consistent return over time the longer you are invested in the market with them. But just don’t be a statistic and lose your money by investing in things you have no business investing in.

Six Reasons to Start Investing Today

Let’s now look at the main reasons you should take action and start investing today.

1) You’ll Increase Your Wealth

Only through smart, low fee investing can a person make a profit big enough to see his own money increase over time.

Just keep in mind there are different times to recover your invested capital (money) and obtain a profit. There are short, medium, and long-term investments.

Tip: Never buy whole life insurance.

It’s not an investment unless you want to invest in making the person who sold you the policy or the company wealthier.

As a general rule, it is the long-term investments that generate the highest returns. Think investment real estate and low-cost index funds.

2) Save For Retirement

You might think the point above is the main reason why people invest.

But, most people invest for retirement.

Because most people are dependent on a salary to survive, they need to save and invest a good part of their income. Or else they won’t have any money to pull from when they’re ready to retire, usually when they’re 60-65 years old.

But don’t be a statistic.

You don’t have to wait until you’re age 60-65 to retire. Just figure out how much you want to spend each year.

For example, if I want to spend $30,000 per year I would do the math $30,000 x 25 = $750,000. I’d need at least that much money invested in the stock market to pull 4% each year and get the $30,000 I need or want to spend each year.

That’s called the 4% rule.

However, most people think “retirement” is an age.

You can have fun while living a simpler life when young and invest most of your money. And then retire from working if you don’t want to anymore before reaching 45.

3) Inflation is Real

Another great reason to start investing as soon as possible is you never know what’s going to happen in life.

And we can easily see inflation has been a constant in life for several decades. It’s a lot higher in some countries more than in others.

But the constant devaluation of your money should be one of the main reasons you should be investing.

Shit, don’t have large amounts of your money sitting in a saving account thinking you’re “saving.” Because you’re not.

And every day, month, and year the value of your money is worth less and less.

Plus, life-changing events out of your control happen.

And only those who have a diversified and solid investment plan manage to get ahead without suffering major losses.

4) Investing Will Help You Achieve Your Financial Goals

Investing is the fastest way to reach the big goals you have for yourself in life.

These goals may include:

Buying a house
Purchasing a new car
Starting a business
Paying for your childs education
Travelling the world
Never working another day in your life if you choose not to

The speed at which you achieve any of these goals will depend on the type of investments you make. How fast you can save and invest your money.

And the percentage of return your investments provide every year.

5) Support Those You Love and Different Projects

If you’re one of those people who like to help others, your community, or have a family who’s relying on you – investing is the answer.

Investing can be an excellent way to support other people and help them accomplish or get what they want in life.

Or make things a little easier for them.

Not everyone has the same opportunities you and have. Life is different for each of us. And your money is a resource. You can do a lot of good with it.

You could invest in helping advance the life and careers of individuals like Lebron James has in his community and billionaire Robert Smith.

Or help local artists, musicians, businesses, and charities.

6) Reduce Income Taxes

One of the advantages of being an investor is that you can obtain significant discounts on the taxes that the government applies to personal income.

If you invest pre-tax money in a fund like the 401K, you could get that benefit, and in the event, you have a loss, you could apply that factor to other investments to get a tax cut as well.

Things to Know Before Investing Your Money

(1) You Need to Educate Yourself – Don’t Be a Statistic

It’s your money, and investing is an activity that involves risk. Therefore preparation is important.

You should set aside some time, and focus on learning more about money, personal finance, business, and how different investments work.

And if you don’t have the time, there are actually many different options available to you that will make investing easier.

As well as assets that can make your life much easier when it comes to investing – like target-date retirement funds.

(2) There is a Risk of Losing Money

As we already mentioned, investing is a risky activity.

However, if you have enough preparation or advice, you can minimize that risk considerably.

Just don’t invest money you can’t afford to lose. Or money you need at the moment like within the next five years.

Learning how to invest your money in a way that works for you needs to happen. Because you don’t want to be a statistic and some number they always throw around like in the data from the survey above.

What Should You Invest In?

There are a wide variety of different assets you can invest in. Some involve greater risk than others.

But as a general rule, the higher the risk, the greater the return on your investment.

Here is a list of the most common assets you can invest in today:

Stocks – Investing in company stocks
Bonds – Financial instruments that generate a fixed income
Mutual funds – Investment pools (think of a basket of individual stocks)
Exchange-Traded Funds (ETFs) – Similar to mutual funds
Cryptocurrency – Like Bitcoin
Real Estate
401(k) Plans
Artwork
Precious Metals
Raw Materials

And there are many more assets I’m probably unaware of.