{"id":34354,"date":"2022-02-09T02:20:30","date_gmt":"2022-02-09T02:20:30","guid":{"rendered":"https:\/\/adamfayed.com\/?p=34354"},"modified":"2024-05-24T06:34:00","modified_gmt":"2024-05-24T06:34:00","slug":"what-stops-people-from-investing-when-they-know-deep-down-that-it-is-the-right-thing-to-do","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/es\/financial-planning\/what-stops-people-from-investing-when-they-know-deep-down-that-it-is-the-right-thing-to-do\/","title":{"rendered":"What stops people from investing when they know, deep down, that it is the right thing to do?"},"content":{"rendered":"<p>Identifying barriers helps address the issues preventing people from <a href=\"https:\/\/adamfayed.com\/es\/investment-options\/offshore-investment-bonds\/\" data-type=\"link\" data-id=\"https:\/\/adamfayed.com\/investment-options\/offshore-investment-bonds\/\">investing globally.<\/a><br><br>Escribo a menudo en Quora.com, donde soy el escritor m\u00e1s visto sobre temas financieros, con m\u00e1s de 422,4 millones de visitas en los \u00faltimos a\u00f1os.<\/p>\n\n\n\n<p><strong>En las respuestas que figuran a continuaci\u00f3n me he centrado en los siguientes temas y cuestiones<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What stops people from investing when they know, deep down, that it is the right thing to do? I explore some of the main reasons including fear generated by the media, family and friends.   <\/li>\n\n\n\n<li>What luxury is the most difficult to go without, once you get used to it?  Time, experiences, security or material goods?  Moreover, how can we spend our money to feel happier, secure and more fulfilled? <\/li>\n<\/ul>\n\n\n\n<p>Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en<a href=\"https:\/\/adamfayed.com\/es\/#contact-me\">&nbsp;p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n<p>Es posible que algunos de los enlaces y v\u00eddeos a los que se hace referencia s\u00f3lo est\u00e9n disponibles en las respuestas originales.&nbsp;<\/p>\n\n\n\n<p>Fuente de todas las respuestas: p\u00e1gina Quora de Adam Fayed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-stops-people-from-investing-when-they-know-deep-down-that-it-is-the-right-thing-to-do\"><strong>What stops people from investing when they know, deep down, that it is the right thing to do?<\/strong><\/h4>\n\n\n\n<p>It is a great question. Deep down, people understand that it makes sense to invest to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Avoid poverty in retirement<\/li>\n\n\n\n<li>Help their children in the future<\/li>\n\n\n\n<li>Have more options and choices later on &#8211; such as the ability to retire early<\/li>\n\n\n\n<li>Avoid losing to inflation in the bank.<\/li>\n<\/ul>\n\n\n\n<p><strong>In a sentence, it makes sense to have more choices and a better life.<\/strong><\/p>\n\n\n\n<p>The biggest things which stop people are:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Fear<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The media make money from fear &#8211; \u201cwhatever bleeds leads\u201d.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-f443a2c4ac6ecfcf4c359264caf464d0-lq\" alt=\"\"><\/figure>\n\n\n\n<p>Therefore, there will always be misleading headlines. What is more, as most people don\u2019t understand investing, they might wrongly think that keeping money in the bank is less risky than investing this.<\/p>\n\n\n\n<p>This is only true if people speculate or are short-term investors as the graph below shows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-18cd0c4a8dba049a42bbf6620894f371-lq\" alt=\"\"><\/figure>\n\n\n\n<p>As the billionaire Ray Dalio says below, cash is actually the riskiest asset of them all, due to inflation:<\/p>\n\n\n\n<p>What doesn&#8217;t help with fear, in this day and age, is social media, friends, and family.<\/p>\n\n\n\n<p>I have run out of the number of expats who have emailed me saying something like \u201cI know I shouldn\u2019t time the markets but this time could be different due to speaking to X and Y person, watching such and such video\u201d.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-1830e0671755b101a19980e1203ba448-pjlq\" alt=\"\"><\/figure>\n\n\n\n<p><strong>2. Procrastination<\/strong><\/p>\n\n\n\n<p>There is never a perfect time to do anything. There will always be potential personal clouds on the horizon which means you might need a percentage of the assets to be returned if the threat materializes.<\/p>\n\n\n\n<p>There will also be other dangers and threats in the world. There always have been, and there always will be.<\/p>\n\n\n\n<p>What is most ironic is that people who procrastinate once always will do for example those who leave money in cash waiting for years (or even a decade) for a big stock market crash will continue to wait for markets to drop more once one finally happens.<\/p>\n\n\n\n<p>I only knew a few people who predicted 2008 and 2020. I don\u2019t know anybody who knows anybody who predicted the crash AND invested at the bottom.<\/p>\n\n\n\n<p>People who make money are those who take action quickly and don\u2019t try to outsmart the market.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-luxury-have-you-earned-that-you-will-never-go-back-to-not-having\"><strong>What luxury have you earned that you will never go back to not having?<\/strong><\/h4>\n\n\n\n<p>What does somebody without a job and many million-dollar salary earners have in common?<\/p>\n\n\n\n<p>Most people would say absolutely nothing. Yet the stats show they do have something in common.<\/p>\n\n\n\n<p>Namely, they are always 3\u20134 payslips away from financial danger. How many celebrities have you heard about who have gone bankrupt?<\/p>\n\n\n\n<p>It is estimated that the majority of former athletes go broke, with many lottery winners going the same way.<\/p>\n\n\n\n<p>The reason is simple. Their financial life is like a juicer:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-0b20b5aff64383e2b31bcf51c3a31b63-lq\" alt=\"\"><\/figure>\n\n\n\n<p>Money comes in, and money goes out. If fresh money doesn\u2019t come in, the whole show can come tumbling down.<\/p>\n\n\n\n<p>The same is true with some businesses. Look at industries like football in the last few decades.<\/p>\n\n\n\n<p>Loads of extra money have come in but profits haven\u2019t gone up because all that extra money has gone on players&#8217; wages, transfers, and agent fees.<\/p>\n\n\n\n<p>This issue is so common that Parkinson\u2019s law has been adapted to explain it:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-71aadeea0aa5083961ebf4e9867c5481-pjlq\" alt=\"\"><\/figure>\n\n\n\n<p>The sensible businesses, and people, don\u2019t just spend all the extra money as they earn more.<\/p>\n\n\n\n<p>They create a surplus, invest it well, and this ensures the person doesn\u2019t always need fresh money if there is an emergency.<\/p>\n\n\n\n<p>This surplus, in turn, creates options and security. Security is higher up on Maslow\u2019s Hierarchy of Needs compared to material things, so is more likely to make you happy than buying loads of random materialistic stuff:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-1697f98b68d547a27a23d2d4ba0e5197-lq\" alt=\"\"><\/figure>\n\n\n\n<p>So, the biggest luxuries I would struggle to give up on are options and relatively good security.<\/p>\n\n\n\n<p>I am not saying never buy luxury things, but the evidence shows it isn\u2019t as useful as having a more balanced life, with enhanced security.<\/p>\n\n\n\n<p>One of the biggest reasons for that is you get used to new luxuries. If you fly economy as an 18-year-old kid, you are just happy to be traveling internationally.<\/p>\n\n\n\n<p>The first time you fly business class you are excited. Then it gets so normal that it doesn\u2019t feel any better.<\/p>\n\n\n\n<p>The same thing is true for any material service or product which you do too often. Spending money on experiences doesn\u2019t get old as quickly as things.<\/p>\n\n\n\n<p><strong>\u00bfLe duele la indecisi\u00f3n financiera? \u00bfQuiere invertir con Adam?<\/strong><\/p>\n\n\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/become-adams-client\/\">Convi\u00e9rtase en mi cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realice el cuestionario de elegibilidad de clientes<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">P\u00f3ngase en contacto con<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam es un autor reconocido internacionalmente en temas financieros, con m\u00e1s de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"further-reading\"><strong>Lecturas complementarias <\/strong><\/h4>\n\n\n\n<p>In the article below, taken from my online Quora answers, I spoke about the following topics and issues:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Could the <a class=\"wpil_keyword_link\" href=\"https:\/\/adamfayed.com\/es\/10-best-property-developers-in-thailand\/\" title=\"promotor inmobiliario\" data-wpil-keyword-link=\"linked\">promotor inmobiliario<\/a> in China, Evergrande, go under and cause a Lehman-style crisis. This is worrying people, given how much debt is in the Chinese system, and how important the property and construction sector is to the Chinese economy. <\/li>\n\n\n\n<li>The stock market didn&#8217;t crash in 2021, but many people predicted it would, and asked fearful questions on Quora to that effect. What does this show going forward for future years?<\/li>\n<\/ul>\n\n\n\n<p>To read more, click on the article below<br><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-adam-fayed wp-block-embed-adam-fayed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/adamfayed.com\/could-evergrande-cause-a-financial-crisis-similar-to-lehman-in-2008\n<\/div><\/figure>","protected":false},"excerpt":{"rendered":"<p>Identifying barriers helps address the issues preventing people from investing globally. I often write on Quora.com, where I am the most viewed writer on financial matters, with over 362.8 million views in recent years. In the answers below I focused on the following topics and issues: If you want me to answer any questions on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":64609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11829],"tags":[],"class_list":["post-34354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-planning"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/34354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/comments?post=34354"}],"version-history":[{"count":2,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/34354\/revisions"}],"predecessor-version":[{"id":87221,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/34354\/revisions\/87221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media\/64609"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media?parent=34354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/categories?post=34354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/tags?post=34354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}