8 Common Reasons Why People Don’t Invest

Assalamu Alaikum girlie! 🌸

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Now let’s get to what you’re here for…

Last month I flooded your emails with details about how you can start investing. All of that’s nice and dandy, but are you feeling hesitant to start?

If so, I got you (as always😉)

Today, we'll tackle 8 common reasons people avoid investing and how you can overcome them to start building wealth. 🏦✨

Let’s jump in shall we?

1. Lack of Knowledge

Why this is a problem: Without understanding the basics, investing can seem intimidating and risky. This might make you want to quit before even starting.

What to do instead: Start with educational resources like books, online courses, and financial blogs. Consider attending workshops (I’ll be hosting some soon Inshaa Allah- stay tuned) or seeking advice from experts.

2. Overwhelmed by Choices

Why this is a problem: Too many options can lead to analysis paralysis.

What to do instead: Simplify your choices by starting with low-cost index funds or mutual funds. Meet with an investment professional if you want to dive deep into the details.

3. Fear of Losing Money

Why this is a problem: Fear can paralyze you from taking action, which could make you miss opportunities for growth.

What to do instead: Perfect investments don’t exist, but the odds are definitely stacked in your favor if you invest well. Remember, investing is about the long-term game not hitting a home run by 2025.

4. Procrastination

Why this is a problem: Delaying investing means missing out on the benefits of compound interest.

What to do instead: Set up automatic contributions to your investment accounts to make investing a habit. The key is to get the ball rolling when you understand enough to start.

5. Lack of Clear Goals

Why this is a problem: Without goals, it's hard to understand your “why” and stick through with it.

What to do instead: Define your financial goals, such as retirement, buying a home, or starting a business. Create a plan to achieve these goals by investing regularly.

7. Misunderstanding Risk

Why this is a problem: Believing that all investments are too risky can lead to inaction or not calculating the risk beforehand.

What to do instead: Learn about different types of investments and their risk levels. Understand your risk tolerance and choose investments that best suit you.

8. Belief in Quick Rich Schemes

Why this is a problem: Chasing quick profits often leads to poor financial decisions and losses. If you get it quick, there’s a higher probability you’ll lose it quickly.

What to do instead: Focus on long-term investing strategies that have a proven track record of success. Like grandpa said, slow and steady wins the race. Don’t let Tiktok convince you otherwise

9. Belief that Investing is Only for the Wealthy

Why this is a problem: This mindset prevents you from taking advantage of the wealth-building power of investing. Investing is how you build sustainable wealth.

What to do instead: Understand that anyone can invest, regardless of income. You can start small and build over time, many platforms allow you to start with minimal amounts.

One of the most important factors in investing is time; not how savvy or fancy you are as an investor.

Until next week, build wealth and stay generous.

Your N.1 cheerleader,

Fatimah ✨

p.s. Schedule a 30-min call to build your financial future today! (It’s FREE- no strings attached)