This phrase is something I hear often and it really confuses me. As silly as that sounds, it does! It confuses me because it’s rarely backed with anything of substance. Now, I’ve been in the industry long enough to know that some people will say it just because they don’t want to work with me. I know I’m not the best fit for everyone, and that’s ok. But, if you’re using it as an excuse, you’re better off just being straightforward with me. And I think most advisors would agree with me there; our time is valuable and we don’t like to waste it! So, if you do say, “I don’t have money to invest” typically two things come to my mind. First, you don’t have a ton of money just sitting around. And second, you lack the discipline to save money on a consistent basis.
First, let’s look at point number one, you don’t have a ton of money just sitting around. I don’t know many people who feel they have a ton of money just “sitting around”. The most successful people I know are intentional with their money. And it’s not your fault that you think you need huge sums of money to invest, the industry is to blame for that. Firms often have account minimums ranging from $250,000 to $1,000,000 to work with them. Yeah… that will turn off a lot of people and make them feel like they’re never able to work with an advisor, or even worse, that they don’t need one. There are firms that don’t have minimums for asset management and those are more often than not, a great fit for Millennials.
The second thing I think of is that you lack the discipline to save money on a consistent basis. This is where I think most of my peers fall. Money is going out the door faster than it comes in. The first thing I do with my clients is go through their spending. By doing that we can start to see where spending is a problem and we can also create a budget that builds in saving and investing. It’s sometimes a painful process, but we’re typically able to find hundreds of dollars by making simple tweaks and changes. Then we help our clients develop the discipline to put money away each month. By doing that, and exercising that muscle, you will put yourself on the best path to wealth and a future that is financially sound.
Large investment accounts don’t happen overnight for most of us. It takes work, discipline, and time. Compound interest is a beautiful thing and if you keep procrastinating to put money away, you’ll probably always find yourself saying, “I don’t have money to invest.”