Life has a way of never making it the optimal time to save or invest and here are the top four reasons why many avoid it all together.

1. The emotional rollercoaster ride.  Watching your investments go up and down every day in the market is a recipe for insanity and will guarantee to make you reluctant to invest additional funds.  Investing requires a well thought out plan, often done with the help of a professional advisor, who knows your goals and risk tolerance and can recommend the right products versus investment ideas you may have been given by friends or family.  You must understand your investment strategy so that you can remove the emotional component and make your decisions with a clear head, based on your long term financial goals.
2. Waiting too long to get started.  Time is your biggest ally when it comes to investing.  You want to start early and take advantage of compounded growth.  Most Americans wait far too long to get started.  I know there are a lot of pulls on your wallet: kids, cars, mortgages, the list is long and endless.   Investing early, allows your money to grow and earn more, just as you do through your career.  This is called monetization, (the movement of money).  You can’t be expected to purchase and pay for everything you need over the course of your lifetime, so you must choose investments that will grow over time to provide you with the savings or lifestyle you want.  This could be investing in real estate as a primary residence or rental property, or it could be investing in a stock portfolio that takes advantage of compounded interest and dividends to grow and increase your wealth over time.
3. Trying to time the market.  This is a fool’s endeavour for most.  Trying to time the market of when to buy in and cash out is a difficult task, even for the most experienced day trader.  Your focus should be on saving consistently, (monthly if you can) and using that money to pay off your mortgage or to contribute to a well-thought out financial plan and investment strategy.
4. Underestimating the tax benefits to investing.  Many Americans are leaving a lot of money on the table not choosing registered accounts, (401K, 403B, or 457B).  You want your employer sponsored benefits, providing you with more savings when your employer matches your contributions (up to a certain amount).  Basically, employers are giving you free money for investing in their plan with contributions growing tax-deferred and providing a tax rebate on your annual income.

Christine’s Tip:

I know saving is tough.  Thinking that you shouldn’t save because you don’t have enough money is the total opposite of what you should do.  It is because you don’t have enough money, that you should be saving.  You need your money to have the time to grow.  Remember, this must be a long term strategy.