If there's one thing the financial world will never run short on, it's suggestions. Even when you go to Twitter and ask a simple question about finances, you’ll get thousands of responses from our famous KOT, who wear many caps including finacial experts.
No matter where you turn in this industry, you'll find all the investing advice you could ever want. And with so much exposure to this information, you’re bound to run into myths and misconceptions too.
On that note, here are some important myths surrounding savings and investments that need to be debunked:
This is probably one of the biggest investment/saving myths that exist. Saving and investments will be as complicated as you decide to make them. Surprisingly, investing can also be as simple as you wish to make it.
No matter your income or net worth, anyone can save and invest their money and gain money from it. Here at Koa, we have made saving money as easy as possible, you can invest and grow your money from as little as Ksh 100.
Money knows no age! We have heard stories of people who retired so early in their lives because they were financially literate and invested their money as early as their 20s.
So why not you?
Nothing is as essential as starting your saving and investment journey early enough. You will learn the skills and tricks required in the world of money management, which will put you in a better position.
One thing most people don’t know is that saving isn’t binary, you can both save (as much as you can afford) and reduce your loans and debts.
The best thing you can do in this position is a little planning at the beginning of each month will ensure you can save and get your debts down.
While we can agree that there’s some truth to that, this isn’t always the case.
Risk in investments is usually measured by volatility, this is basically when a market or security experiences periods of unpredictable, and sometimes sharp, price movements. People often think about volatility only when prices fall, however, volatility can also refer to sudden price rises too.
So if your investment is simply more volatile, it might not necessarily yield a higher return if its prices start looking southwards.
Saving or investing your money is not putting yourself in a financial jail, where all sorts of fun are put aside.
You can go out and meet your friends, spend time with family and still save some money. This can all happen if you have a solid budget and you are tracking your expenses.
Eg: If you were going out on all weekends of the month, you can cut it down to just two, so the money you were spending on the other two weekends goes into your sinking funds.
The goal is to live and enjoy life and still be very smart about it. You deserve some peace of mind as there’s more to life than money, but don’t let these misconceptions deter you from making smart investments!