Background
When most people hear the word investment, the first thing that comes to mind is risk, fear, or loss. Many people want to invest but never take the first step because of certain beliefs they’ve heard from others or picked up over time. Sadly, these beliefs have stopped countless people from growing financially and living the life they desire.
The truth is, nobody becomes financially free by merely saving money in the bank. Real growth begins when you learn how to make your money work for you. But before that can happen, you must free your mind from wrong beliefs that keep you stuck.
Today, we’ll uncover seven common investment myths that keep beginners from starting and show you the truth behind them. Once you understand these truths, you’ll see that investing isn’t as scary as it seems — it’s simply about knowledge, patience, and consistency.
1. “I Need a Lot of Money to Start Investing”
This is one of the biggest lies that stop people from investing. Many people believe that unless they have millions in their account, they can’t invest. But that’s far from the truth.
The fact is, you can start investing with whatever amount you have. It could be ₦1,000, ₦5,000, or even ₦10,000. What matters is starting small and growing steadily. Every great investor you see today once started small. The secret is to start where you are and stay consistent.
If you keep waiting until you have a huge amount, you may never begin. So instead of saying, “I don’t have enough,” start asking, “How can I start with what I have?” That shift in mindset is what separates investors from dreamers.
2. “Investing Is Too Risky”
It’s true that every investment carries some level of risk, but here’s the truth: not investing is even riskier. Keeping all your money idle or in a savings account means it’s losing value over time due to inflation.
The key to managing risk is education. When you understand what you’re investing in, the risk reduces significantly. The problem isn’t that investing is risky — the problem is that most people invest in what they don’t understand.
So before you invest, do your research, learn from credible mentors, and start with less risky options like mutual funds, treasury bills, or real estate investment trusts. As your knowledge grows, your confidence will grow too.
Remember, risk is not your enemy — ignorance is.
3. “I’m Too Young to Start Investing”
Some young people think investing is only for older adults with stable jobs or businesses, but that’s a wrong belief. The earlier you start, the better your financial future becomes.
Investing is not about age, it’s about vision. The power of compound interest works best when you start early. Imagine saving and investing just ₦10,000 monthly from age 20 — by the time you’re 35, you’ll be amazed at how much your money has grown.
Even if you’re a student, an intern, or just getting started in your career, you can begin with small, consistent investments. Every naira you invest today is a seed that can grow into a forest tomorrow.
Don’t wait until you have everything figured out before you start. Start now, and let time work in your favour.
4. “I Don’t Know Enough About Investing”
This myth keeps many people in fear. They believe investing is complicated or only meant for experts in finance. The truth is, everyone can learn how to invest — you just need to start with the basics.
Thanks to technology, you can now learn almost anything online. There are free videos, blogs, and courses that explain investing in simple terms. You don’t need to be a professional to understand the fundamentals.
Start with simple things like:
- The difference between saving and investing
- How compound interest works
- The types of investment (stocks, real estate, mutual funds, crypto, etc.)
- How to calculate your returns
The more you learn, the more confident you’ll become. And remember, learning never stops — even the best investors in the world keep learning every day.
5. “Investing Is Only for the Rich”
If you’ve ever thought this way, it’s time to renew your mindset. The truth is that investing is what makes people rich, not something they start doing after becoming rich. Wealth doesn’t come before investment — investment comes before wealth.
Think about it: if rich people invest, what do you think helped them become rich in the first place? They took steps when others were too scared to try.
You don’t need to own a big business or earn a six-figure salary before investing. Even a small business owner or a salary earner can start investing gradually. What matters is not the amount you start with, but the habit you build around investing.
Remember, the rich keep getting richer because they make their money work for them. You too can start that journey today — one step at a time.
6. “All Investments Are Scams”
This is another dangerous myth that keeps people from investing. It’s true that scams exist, especially online, but not all investments are scams. The problem is that many people fall for unrealistic offers that promise quick returns.
If someone tells you to invest ₦10,000 and get ₦50,000 back in one week, that’s not investment — that’s fraud. Genuine investments take time to grow because they’re built on real value.
The best way to protect yourself is through due diligence. Always ask questions like:
- What is this company investing in?
- Is it registered or licensed?
- How do they make their profits?
- Are there testimonials from real people?
Take time to research before putting in your money. When you understand the system, you’ll easily spot red flags and avoid traps.
7. “I’ll Start Investing Later”
This is perhaps the most dangerous myth of all because it sounds reasonable. Many people keep postponing their financial goals until “next year,” “after promotion,” or “when business gets better.” Unfortunately, later often becomes never.
The truth is, there will never be a perfect time to start investing. There will always be bills, challenges, or unexpected expenses. But the earlier you begin, the faster you can achieve financial freedom.
Start with what you have, even if it’s small. It’s not about perfection, it’s about progress. Every small investment is a step towards your bigger goals.
If you delay too long, you might end up working for money all your life instead of letting money work for you.
Conclusion
It’s time to stop letting these myths hold you back. You don’t need to be rich, old, or a financial expert to start investing. All you need is knowledge, patience, and consistency.
Start where you are, use what you have, and learn as you go. The earlier you begin, the better your future will look.
Don’t let fear or false beliefs stop you from building wealth. Remember, every successful investor you admire today once took a small step that changed their life forever.
So, take that step today. Your financial freedom begins with one wise decision.