Investment Why are poor and middle class individuals afraid of investment?

[Bookwormlux]

Investing one's money is a good way to make money as this would help you make good Profits from the capital invested, provided you are able to do what is expected and not rely on others to guide you.

I have observed that so many poor and middle class people do not ever think about the need to invest their money in profitable schemes like real estate, stocks and the likes. They seem to focus more on saving money in banks as they often believe that investing is a risky thing that could yield to losses. This mentality makes them to not take the bold step of investing at all .
Contrarily, the wealthy ones are never afraid of investing as they already have enough information about what ever they have in mind to invest in. This sense of confidence helps them to succeed.

Why do you think the poor and middle class individuals get scared whenever investment is mentioned?

 

[Deleted member 28127]

The poor and middle class family have only one goal get a salary spend it for family needs until end of month and every month get new salary. The investment for a married person is a risk and for single people he is thinking to use this money to go to some excursions with friends instead on investing it on a project this is unfortennally the thinking of majority of people as for them they doesn't want something new to invest and risk and learn something just work get paid and spend money.

 

[Bookwormlux]

The poor and middle class family have only one goal get a salary spend it for family needs until end of month and every month get new salary. The investment for a married person is a risk and for single people he is thinking to use this money to go to some excursions with friends instead on investing it on a project this is unfortennally the thinking of majority of people as for them they doesn't want something new to invest and risk and learn something just work get paid and spend money.

It is unfortunate and I believe this plays a key role in their always not having money to settle their bills since their monthly payment can not be enough to take care of their never ending bills.
For the young ones, they prefer spending time on social media than investing same time in learning how to invest and Profit from lucrative schemes like blogging, real estate , stocks and crypto currencies investments.

 

[Deleted member 28127]

It is unfortunate and I believe this plays a key role in their always not having money to settle their bills since their monthly payment can not be enough to take care of their never ending bills.
For the young ones, they prefer spending time on social media than investing same time in learning how to invest and Profit from lucrative schemes like blogging, real estate , stocks and crypto currencies investments.

You remember me for something many friends if they find you on paid to post websites they will find this strange if they see you are earning money online however they are using their phones just for facebook or instagram or this similar tricks they find it strange that you are thinking about online earning for them even they doesn't understand what it is about or even know some basis but have no interest to earning money online he or she may spend 5 hours on facebook and not even one hour for online earning tricks. This is something strange to me.

 

[Good luck]

I think the poor or middle class set of people are shy and low mind set when it comes to investment especially when it has to do with huge amount of money.Poor and middle class are always afraid of loosing their money which a rich person will not consider.The rich or wealthy people will always take risk which the poor will not attempt because they don't want to loose money.

 

[Bookwormlux]

You remember me for something many friends if they find you on paid to post websites they will find this strange if they see you are earning money online however they are using their phones just for facebook or instagram or this similar tricks they find it strange that you are thinking about online earning for them even they doesn't understand what it is about or even know some basis but have no interest to earning money online he or she may spend 5 hours on facebook and not even one hour for online earning tricks. This is something strange to me.

It could be that they are getting enough money from their parents and this is what makes them to never consider channeling time spent on social media to something else that could enable them to make good money and sustain themselves. Things like this make me to not consider telling people I know about how I am earninng online.

Most people remain poor because they cannot take time to learn what would benefit them and let them make wise investment decisions.

 

[Josemendez]

A poor person barely have enough to eat , he finds it difficult to make money and when he does , it is not usually enough to take care of his or her needs , thus putting it into saving or investing it is not usually easy. Infact investing it is easier for them to do ,if only the form of investment is a legit one. The thing there is that ,they are scared of losing the money thus investment is not normally an option for them

 

[Sherman198]

These two classes you mentioned are weary of how they spend. Mostly they have to be effectively prudent if not, any mistake made, can be very costly to them. Fear some times can be a precaution, it's good at times to exercise fear when you are not sure about things. As a poor or middle class person, it is advisable to always make extensive research, before investing, and to always invest what they afford to lose.

 

[Good-Guy]

To be very frank with you, middle-class and many poor people are actually afraid of investing money because they do not have enough money and if they invest money and suffer from loss, they will become poorer. Some poor people might actually risk their money but they would not invest all of their savings and the same goes for rich people. I am a kind of guy who has invested a good amount of money in an online money earning website despite the fact that I am not rich right now, but I do hope to become rich in the future.

 

[Augusta]

I don't think it about them being scare I think it more about them not having to invest.. some of these people are paid peanuts by the upper class that the money isn't even enough for daily struggles let alone for other engagement. Life is often times very hard for them

 

[Alexandoy]

I am a middle class and I have to admit that I avoid investing in stocks. But investing in general is in my agenda. In fact, I have a big savings in the bank that I intend to invest in a lot or land in the rural area. For me, real estate is the best investment because it does not depreciate as per the history of our economy.

 

[sincerem]

They're simply afraid of losing their hard earned money which they don't have plenty into an investment scheme they aren't sure of, when it comes to profit. Ability of not taking risks cost them remaining on their heels without tasting riches. Riches doesn't come over night rather it comes through some investment we're always determined for, which we are experienced around too.

 

[Setho]

It is actually a very common knowledge that it is easier to make money if you have money and that is why the rich people always have an edge. The poor and middle class are always afraid of investment because they are afraid of losing the little we have and you really cannot blame them for this kind of decisions.

 

[Mika]

Investment is risky. If the company or the business you have invested in fails, you will lose your money and the poor class and middle class cannot afford to lose their investment because when they lose their investment, they will be suffering badly. This is the reason why poor and middle class do not invest.

 

[uforwealth]

Investing one's money is a good way to make money as this would help you make good Profits from the capital invested, provided you are able to do what is expected and not rely on others to guide you.

I have observed that so many poor and middle class people do not ever think about the need to invest their money in profitable schemes like real estate, stocks and the likes. They seem to focus more on saving money in banks as they often believe that investing is a risky thing that could yield to losses. This mentality makes them to not take the bold step of investing at all .
Contrarily, the wealthy ones are never afraid of investing as they already have enough information about what ever they have in mind to invest in. This sense of confidence helps them to succeed.

Why do you think the poor and middle class individuals get scared whenever investment is mentioned?

You have already mentioned it in your thread. It is fear, fear of loss. The poor and the middle classes are afraid of losing their hard earned money that is insufficient to meet their needs,to investments that involves risks.

These groups of people are usually not comfortable investing their earnings when there is no assurance that they will make profits.

 

[Kendy]

The answer to the question is already in the thread topic. The reason poor and middle class people are pessimistic when it comes to investment is logically because, they are poor. They are skeptical and would not want to take risks that the positive results are not guaranteed. They have a little and would not want to see it go down the drench all in the name of investment so they resort to saving their money in the banks or they prefer to use in setting up a small scale business but when it comes to investment like; cryptocurrency trading, stocks and shares, real estate investment and a host of others, they decline the offer and to be sincere, I do not blame their preferences because it is not everyone that must invest. The small scale business they choose to operate is an investment in their own capacity. Not choosing to go for higher investments does not mean that they are illogical or irrational in thinking. The high level of fradulent activities and the economic inflation has made the middle class to be very cautious when it comes to massive investment because when once they loose their savings, it could lead to depression or even death rate.

 

[Good-Guy]

As I mentioned before, many people do not have money, but I do not think that this is the only reasons for whey many people are avoiding to make investments nowadays. In fact, there are many rich folks who are not making investments right now due to the fact that they are uncertain about the markets. There have been cases of many people investing money in the stock market and the cryptocurrency market and enduring loses. This is why they are prudent when it comes to making investments right now.

The pandemic has also make many people to pull away the investments from the markets and this led to the downfall of many stock companies. I think that people are waiting for the market top become stable and until that happens they tend to invest money in fixed assets such as real estate business because real estate and property business is such kind of business that would generate profits in the long time. However, still there are many people who are relying on small investment opportunities and investing money they could afford losing. I just hope that the conditions of the world economy get better so that investors could start investing more money.

 

[Abigael]

It is very true that most low and middle class people are afraid of investing their money. A simple explanation is because their minds are used to the level of finances that they were brought up in. So naturally, they are used to being that way and find it hard to make changes. You know, making a new step is so hard and many people just choose to remain where they are.

The rich people find it so easy to take investment risks. This is because they are used to such earning methods. They are also very knowledgeable on this since most families pass on investment knowledge to their children.

It is important for low and middle income families to be aware of this. That it is normal to be afraid of trying something new. It is normal to feel awkward the first time you do something that you have never done before. That way, they can mould themselves well into the investment world which is great for their growth.