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This article is written by a student writer from the Her Campus at Helsinki chapter.

Investing as a topic has occupied a fair share of our media landscape: news portals are reporting ups and downs in the stock market, bloggers are sharing their latest victories in the financial field, and entrepreneurs are explaining the difference between assets and liabilities. Despite a great number of educational content on this topic, misconceptions are still very much alive. My own little research about people’s attitudes towards investing revealed three most common misbeliefs that require some clarification. Let’s break them down. 

1. you need a degree to start

While some basic knowledge about investing will not hurt, you do not necessarily need a university degree in economics to start. If you have zero motivation to sweat over a big dusty book, you can always replace it with a more interactive resource. Podcasts, guides for beginners, courses and websites, such as Investopedia, are available to anyone with internet connection and willingness to learn. All you need to do is start. Every baby step counts too. By the way, remember that you can always reach out to your bank for help, and book a consultation with a specialist. 

2. It is only for the rich

It is true that investing into any financial tool requires a starting capital. However, we are not talking about millions or even thousands of euros. Depending on the service you are going to use, you should be able to start with less than a hundred euros. At this point, it might be smart to consider investing into different funds and ETFs rather than stocks due to their price. Consistency is the key here. Even with small but regular investments, one can earn a good amount of money in the long run.

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3. I do not have to invest because I am already saving money

Saving is a crucial part of obtaining financial freedom. However, just putting your money aside is not as risk-free as you might think. Annual inflation remains around 5-6%, while banks do not offer even 3-4% in return for those who open a savings account. Slowly but surely, all saved money is losing its purchasing power due to the general rise of prices. Besides, saving and investing can both be done with a thorough budgeting.

To sum everything up, I know that investing can seem extremely difficult at first due to the market’s complexity and range of tools. Do not let it discourage you from investing because only the sky is the limit. 

Helsinki Contributor