8 Reasons Why People Don't Do Any Investment – Part 1

In my last blog, I have written about the difference between investment and non-investment. You can read it here.

Today I am going to write about the reasons why people don’t do any investment.

I have observed lot of reasons for not doing any investment. Here I am listing some common reasons.

1. Not knowing where to Invest

Many people want to invest but they are confuse about where to invest and due to this their money kept idle in saving account for long time. Many doesn’t know what is PPF, NSC, Pension Plans, NPS etc. Doesn’t know difference between Equity and share trading. Thinking Mutual Fund and share trading is same. Don’t be confused. Learn about different kind of investment and choose the ones best suits you.

2. Waiting for right time

Many people waits for right time and forgot about investment. This wait is costing them dearly. For investment “The Right Time Is Now”, remember I am talking about investment not about trading or any short term investment.  Don't wait for right time because now is the right time, if you haven't started any investment start now.

3. Only thinking about tax saving

Saving Tax is important but ignoring right investment just because it doesn’t provide any tax benefit is not write decision. Just think, 3-4 % tax free return is better or 10-12% return with tax liability. Always choose the investment product which provide good post tax returns. For 80c also choose the instrument which provide good returns (i.e.:- Term Insurance + PPF is far better than any endowment insurance or ULIPs).

4. Always in spending mode

When a person starts earning, he also starts purchasing thing that he likes. After some time he starts purchasing things which is unnecessary and this becomes a habit. Not knowing the difference between necessary and unnecessary things leads to disaster in financial life. Pampering time to time own self is good (you are not earning money to suffer)  but doing it so frequently is bad. Start investing as long as you start earning and after some time investing become a habit. Remember “Spend what left after saving”.

Will continue with other 4 reasons in next blog……

Please share your view.