Money is a tricky topic. We’d all like more of it, but we’re not always entirely sure how to get there.

One of the ways to increase your cash flow is through investments, and I’m not just talking stocks, here.

Investing in and planning for your future is key to making sure that even after you retire, you aren’t left with debt and an unliveable monthly income.

All of this can be a little daunting, though, especially if you’ve never invested before. To make things worse, the world of investing is overrun with myths and commonplace assumptions that in reality have little to do with your personal finances and financial planning.

Here are four of those common myths, which Moneyweb has debunked so that you can set your mind at ease and start planning for your future:

I don’t have enough money to invest

You’ve heard the saying – “a little goes a long way”. It’s what you do with it that counts.

There are very few barriers to entry for anyone wanting to set up an investment portfolio. Most reputable unit trust platforms, as well as reputable robo-advice platforms, require a minimum investment premium of R500 per month or a lump sum investment of R20 000, to begin with.

If you can’t afford a monthly premium of R500, start setting aside as much as you can every month in a separate account to build up ‘seed’ capital.

Then use that seed capital to set up your investment portfolio.

Investing is too risky

Now that you have the seed money to set up an investment portfolio, you’re feeling a little out of depth. I get it.

If you aren’t sure of how to proceed, the easiest solution is to bring in an expert.

Consequence Private Wealth believes that “the consequences of decisions made today will unfold over a lifetime based on the sound principles applied at their inception”.

They’re already thinking ahead, mapping out the risks, and planning so that you can enjoy the benefits down the line. They can also advise you on the best way to manage your personal wealth.

Going at it alone may be risky, but involving the experts is an easy way to minimise risk and set your mind at ease.

I’m too young to think about retirement

You’re young, free, and feel like you’re going to live for a million years. It’s a nice place to be, but it’s also a massive risk.

While ’50’ might seem like ages away, it’s closer than you think.

Further, if you don’t take advantage of the tax benefits of investing in a retirement fund, you are doing yourself a disservice. You are permitted to invest up to 27.5% of your taxable income towards a registered retirement fund, which effectively allows you to invest with pre-tax money.

The sooner you start, the more you’ll have saved up, and better off you’ll be when you retire.

It is too late to start saving for retirement

It’s never too late. Even if you start a little later, it’s better than not starting at all.

The first step is to undergo a ruthless budgeting exercise to free up some income that you can redirect towards investing for retirement. As you settle debt and free up more income, you can slowly increase your monthly savings.

Thereafter you will need to consider working past the age of 65 to allow you more years to earn and invest.

It can all feel a bit overwhelming if you’re late to the game, which is why sitting down with an expert to help you sort it all out is a good way to formulate the most effective plan.

Remember that the biggest investment that you’re making at the end of the day is in yourself.

And, in case you need reminding – you’re worth it.

[source:moneyweb]