How to Make Millions: 8 Investment Myths You Should Stop Believing

Are you interested in investing in the stock market or real estate? Do you want to build wealth and have plenty of money set aside for when you get older?

Investing is a smart approach for people who want to passively increase their net worth. But, in order to earn as much money as you possibly can — perhaps, even make millions — you need to make sure you’re practicing smart investing strategies.

If you’ve been wondering how to make millions by investing, the first step you need to take is to stop believing these eight common investment myths.

1. You Need to Have a Lot of Money Before You Can Invest

Lots of people are under the impression that they need to have wealth before they can start building wealth. This couldn’t be further from the truth, though.

If you want to reap the benefits of investing, you have to start somewhere.

Even if you only have a few hundred dollars month to put into an investment account, that’s better than nothing at all. Start there and, when your income increases, increase the amount you invest.

2. You Can Predict Future Outcomes Based on Past Performance

It’s a good idea to look at an investment’s past performance before you decide whether or not you want to invest in it. But, at the same time, it’s not the only factor you need to take into account.

An investment that’s doing well now might now always do well. Focus on quality, long-term investments and don’t worry too much about the short-term changes.

3. It’s Always a Good Idea to Invest in Popular Companies

Popular companies — Apple, Facebook, Twitter, etc. — might seem like good investments. Keep in mind, though, that just because something’s popular now, that doesn’t mean it always will be.

The value of these companies wax and wane and something that is doing well right now might not do so well in the future.

This isn’t to say that you can’t invest in popular companies. You just shouldn’t assume that they’ll do well long-term just because they’re well-known.

4. You Need to Thoroughly Study the Market to be Successful

It’s more important to focus on the companies in which you’re investing, as well as yourself as an investor.

Pay attention to fluctuations in the market, of course. But, don’t convince yourself that you need to be a stock market master before you dive into the world of investing.

5. You Should Only Invest Domestically

This is a major investment myth that keeps lost of people back from earning as much as they could. In fact, it’s more of a risk to not have any international investments.

Think about it: the United States represents only a little more than half of the global stock market — why would you invest exclusively in American companies?

6. The Best Investment Strategy is a Complex Strategy

Some investors are under the impression that their strategy needs to be extremely detailed and complex in order to be effective. In reality, though, it’s better to play the long game and stick to a simple investment strategy.

Don’t let yourself get distracted by trying to keep up with the stocks that are hot at the moment. Focus on investments that are going to be reliable long-term.

7. Your Money is Safe if You Work with a Professional

Many investors don’t keep a close eye on their money. Instead, they assume that it’s safe because it’s being handled by a professional.

It’s important to keep in mind, though, that a lot of financial advisors aren’t actually required by law to act in their clients’ best interests.

Your financial advisor could be making risky decisions with your money. Pay attention to what they’re doing so you don’t lose your investment later on.

8. You Should Only Invest in Real Estate in a Down Market

Finally, when it comes to real estate investments, many people are under the impression that they should only invest in down markets.

It’s true that home prices are lower when the market is down. But, rent prices usually have to drop, too.

You can certainly invest in real estate during a down market, but you might not want to limit yourself to only investing during those times.

Smart Investments: How to Make Millions

Okay, you’re now fully aware of what not to do. But, what should you do instead when it comes to making smart investments?

These investment strategies will help you increase your income and make millions.

Diversify Your Portfolio

Don’t put all your eggs in one basket. Invest in a variety of stocks, bonds, and other assets.

Understand Your Goals

What do you want to get from investing? Are you trying to save as much as you can for retirement? Do you want a way to quickly increase your worth?

Figure out your goals, then plan a strategy that helps you achieve them.

Weigh the Pros and Cons of Each Investment

You may have found yourself asking questions like, “Are timeshares a good idea?” or “Should I invest in gold?” You’ll find a lot of conflicting information out there regarding the value of certain investments. Ultimately, though, the answer is up to you.

Before you make a decision, do your research, weigh the pros and cons, and think about your investment goals.

Play the Long Game

It’s easy to let emotion take over when you see the value of a stock or other asset drop suddenly.

Remember, though, that you’re in this for the long haul. Don’t let temporary fluctuations cause you to act irrationally.

Looking for More Investment Advice?

It’s easy to get overwhelmed when you start thinking about investing. But, it’s not as complicated as you might initially think.

If you avoid these common investment myths and stick to the investment strategies discussed above, you’ll be well on your way to figuring out how to make millions.

Are you interested in learning more about investing? If so, we’ve got all kinds of articles to help you.

Check out the investing section of our site today to continue your investment education.

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