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Why people don't invest?

By Edited Oct 20, 2016 0 0

Though this tagline “ Why people don’t invest” cannot be summed up in a small article as the explanation of people not investing goes beyond it, but still I will briefly explain on why people actually don’t invest. In these times, when inflation is at its peak, credit crunch is there and worsening more, industries are being down sized how do you expect people to invest when there is no circulation of money? People are earning close enough to meet their basic requirements only, how will they invest when they won’t have money? This is the very first reason that is actually the reason for people not investing (Assuming that there is no circulation of money)

Now the second assumption is that people have money but they don’t invest? Well, there are multiple arguments and reasons behind people not investing. First of all is the risk factor. There has been said that there are two main classes of people in terms of business, one is who are risk takers where the others are risk averse people. Risk takers invest in any where they want, all they need is a instinct to invest it, since the risk averse people avoid investing until and unless they have a proof that this particular thing will give us profits. They just want a surety of the fact that if they invest, they won’t be facing a loss so they don’t invest is risky projects. This lot of people prefers investing in promissory notes and interest bonds as they know that there is no such risk factor involved in it and their money is safe.

There can be other many reasons behind not investing such as one has already invest so much in the past that he doesn’t needs to invest more, or , one already has a property that has come since forefathers and he thinks is enough as an investment so he doesn’t invest. Other reasons can be preference of savings in bank or even your home (that again goes for the lot who is risk averse)

Many people also don’t invest because they just have a fear factor in their personality. They think either it’s going to be a loss or it’s useless to invest. This is especially the lot who belongs to middle class and just has savings enough to live a reasonable life. This fear factor usually comes for inheritance, and even if someone wants to mitigate it he is being suppressed by giving examples and quotations from their early generations.

Now you might be aware of the fact that Gold is an investment too, a huge investment. If you fear losses in investing in projects, I would suggest you to go for gold, as it is a thing which is constantly facing suppression since last decade. People who had purchased gold ten to fifteen years back are now enjoying its benefits, as the price has not doubled or thrice but is ten times to it. A huge amount! This suggestion is especially for the risk-averse people. Projects can be stopped from initiating, stock market can fall, your investment in a business can turn out to be a folly, but investing in gold have no such risks involve it, you are going to earn lots each year and when you feel money you can mortgage or sell it and fulfill your need. There are a lot of mortgage jewelers that keep your gold, give money to you and then when you pay them their amount back, they return your gold back to you. Favorable and pretty comfortable, isn’t it?

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