This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
We always hear or read about how important it is to invest . What’s more, even financial experts tell us that saving is useless if you don’t plan to invest some of it to grow your capital.
However, there are thousands of investment myths. In this regard, Silvia Singer, general director of the Interactive Museum of Economics ( MIDE ) moderated a panel of experts with Sofía Macías, author of Little Capitalist Pig ; the specialist Regina Reyes Heroles, author of the book Live like a queen and spend like a commoner , and Juan Luis Ordaz, director of Financial Education at Citibanamex, during the MoneyFest 2021 financial festival.
Image: MoneyFest 2021
What are the myths that exist in investments?
“If we save little, we invest less. And when we do, it is under many preconceptions that do not help us make good decisions, “said the director of MIDE.
These are some of the myths that exist about investing that can stop us:
1. “It is very dangerous to invest”
An investment is what with certain certainty will give you your money back plus a return. Anything outside of this definition is speculation, the Citibanamex expert remarked.
It depends on what you invest, because there are approaches and tools that help manage risk, but also a danger when you do not invest because money is losing value, recommended Sofía Macias. “The bad news is that whatever you do, there is risk. If you choose something suitable for your goals in a given time, the danger is more limited ”.
Knowing what you want and when you want it is the most important thing, Reyes Heroles remarked.
2. “It takes a lot of money to invest”
“You need 50 pesos. You need to plan, know what you want, and get started. There are instruments that allow you to start with very little to begin to understand how your money grows ”, remarked the author of Living like a queen and spending like a commoner .
In this regard, Juan Luis Ordaz recalled that the first step is to choose a goal to choose an investment tool and not go for the fashions.
“The worst time to invest in something is when it comes out a lot in the news because it is fashionable and you also buy expensive,” recommended Sofía Macías. “When a platform is at all-time highs, it is time to know it before taking a risk.”
3. “I can get rich overnight”
Sometimes we confuse that investments give income, when in fact they give long-term wealth, remarked the author of Little Capitalist Pig. “We believe that we can, we will invest and after six months we will be able to spend.”
For her part, Regina recalled that “the idea of investing is thinking about compound interest. This money has to work while we do our thing. We have to give this money a work horizon.
Ordaz remarked that the great millionaires of the world work their wealth with these three pillars to build wealth.
- Money attraction: Occupy your talents in what I am good at and have a good relationship with money.
- Money management: Knowing how to spend and use what we earn.
- Multiplication of money: That’s what investments exist for
4. “You have to be an expert to invest”
Macías said: “Investing is a skill, but not one that is born with or that is acquired in school.” That is, it is generated with financial education courses. “The habit do not do the monk. Yes you have to study, but you can start with low risk ”.
Reyes Heroles mentioned that it is necessary to increase the participation in investments as experience is acquired and to be in constant training. “Think about how much you are losing by not investing.”
5. “You always have to invest in a bank”
“What is important here is to participate in institutions that are regulated to protect and respect your money. If something sounds too good to be true, it probably is, ”recalled the MIDE director.
For his part, Macías pointed out that it is necessary to update all the time to know the different platforms that exist such as Fintech. “Many people want to get rich, but they don’t want to pay the price to stop spending, learning and practicing.”
“The people who do prepare themselves in financial matters multiply. Those that do not divide ”, concluded the Citibanamex executive.
Source by www.entrepreneur.com