5 lies you've been told about investing

There are many lies people have been told about investing. Some of these lies are self-thought. People have been lied to because the person telling this lie doesn't know any better or they failed themselves and don't want to see you fail.

Other people have succeeded and don't want to see you accomplish your goals. So right now, we'll debunk 5 lies you've been told about investing.

Number one: you need to be a millionaire or have a lot of money to start investing

This is not true at all in this day and age. Yes, in the past the stock markets were only for the rich and wealthy, but the doors have been opened to us common folks a long time ago.

With the help of the internet investing the stock market is a lot more accessible now. You can buy and sell shares from the comfort of your living room or bedroom. Discount brokers have also made it very affordable to buy and sell shares. 

Previously, you would have to pay hundreds of dollars just to buy or sell stocks. Now your commission fee can be as low as $4.99 or even free if you're using an app like Robinhood.

You also don't need thousands of dollars to buy shares. You can start off by just buying one share in a company like Coca-Cola, which has a share price of $46 right now.

It's also better to start with a little bit of money compared to investing $1 million from the get-go. Reason for this is that with small amounts of money you can experiment and have fun while you're learning the ins and outs of the market.

Imagine your first time investing with $1 million; you would probably be too scared or cautious with the money hoping not to lose a single penny in the market.

Number 2: I don't have enough or make enough money to start investing

Now, this one is a follow-up from the last lie. Any small amount of money you can set aside will help, even if it's only $10 a week. These 10 dollars add up to $520 by the end of the year and you can definitely start investing with $520. Start saving for investing now and your future self will thank you.

Look at where you could save a couple of dollars during the week. It might mean eating out less during the week or one less trip to Starbucks a week. That is if you like Starbucks of course.

A change of mindset will do wonders. Instead of saying I don't have $10 to spare, change it to how can I save $10 a week? You will kick your subconscious into high gear and before you know it you'll end up saving even more than just $10 a week.

Number 3: invest now because long-term the market has always seen a 7% return

Number three is a tricky one. You will hear financial advisors and even people in the media saying this one. The reason you have to be careful with this one is because the future is unpredictable.

No one can predict what the market will do or return in a given year. If the market went up 10% last year that does not mean that it will go up another 10% in the future. On the flip side, however, staying on the sidelines, because you don't know what the market will do is risky in itself.

People usually talk about the long-term returns to ease your mind and get you into investing. If you stay on the sideline not only will your money not grow, it’s actually losing its buying power, because of yearly inflation.

Number four, I don't invest because the stock market is too risky

This one follows up nicely with lie number 3. Yes, if you don't have at least some basic knowledge about investing then it will be too risky, but with the help of financial planners and advisors there's no need to be scared. 

Also, many investors do at least some self-education by reading investing books and listening to some audio books.

Keep in mind that there is risk involved with anything you do. If you don't want to invest and rather keep the money under your mattress, you are opening yourself up to burglars, house fires or even your dog that might end up eating or shredding your money.

If you think that leaving your money in the bank or your savings account is the way to go, think again. With the measly 1% or less in interest that you earn, your money's buying power is being eaten away by inflation.

If on average inflation is 3% per year, $1 today is worth 3% less next year, so $0.97.

Number 5, You need to be an expert to start investing

It is true that you need to have some basic knowledge about how the stock market works, but you don't need to be Warren Buffett in order to get started. Get yourself educated by reading books (this one is a great start).

Once you have built up your confidence, you can start by investing a small amount of money. Money you would not mind losing. By investing a little amount, you psychologically prepare yourself for growth, because once you see your investments growing it will build up your confidence and knowledge to invest more, in a responsible manner of course.

I hope I've been able to motivate you by debunking some of the most common lies that I often hear being told to eager investors.