The 3 Biggest Myths About Investing
Sep 10, 2025
By Julie Foster, Raiz
If you’ve been thinking about investing but keep putting it off, chances are you might have run into one of these common myths. They sound convincing, but they're often the very things that stop people from getting started. So let’s bust them.
Myth 1: You need a lot of money to start
A lot of people think investing is only for people with big savings accounts or spare cash. While that
may have been true years ago, it is not the case today.
With Raiz, you can start with as little as $5. Your money is automatically spread across a portfolio of
investments, so you get instant diversification without having to save thousands first.
If you’re thinking ‘What's the point of investing $5 what will that do?!’ The answer: A lot actually, and
it's not just about the dollars! Starting small lets you get comfortable with investing, learn as you go
and build habits. Over time, those small amounts can grow into something significant thanks to
compounding – where your returns start earning their own returns.
Truth: You do not need a lot to start, you just need to start.
Myth 2: Investing is too risky
Yes, investing comes with risk – but not investing, that's also risky!
Here’s why: inflation.
Inflation is the rise in the cost of goods and services over time. As the cost of things go up, each dollar
you have buys less than it did before. Even a small amount of inflation each year can quietly chip
away at your money’s value.
Investing gives your money the chance to grow faster than inflation over the long run. The goal isn’t to
avoid risk altogether, it’s to manage it. That’s where your risk profile comes in. By matching your
investments to your comfort level and time frame, you can find a balance between growth potential
and stability that works for you.
Truth: Not investing can be risky too. The key is finding the balance that works for your goals.
Myth 3: You need to know everything before you invest
Waiting until you “know enough” can mean waiting forever. The reality is, you will never know
everything – even experienced investors are always learning.
You don’t need a finance degree, years of study, or perfect timing to begin. In fact, many investors say
their confidence only started to build once they were actually in the market.
The key is to start with an amount you’re comfortable with, even if it's $5, choose investments that
match your risk profile and time frame, and let the process be part of your education.
Truth: You can learn as you invest. The important thing is to take the first step.
The biggest obstacle to investing is often the stories we tell ourselves. If you can move past these
myths, you will see that getting started is less about being perfect and more about being consistent.
