I thought of writing about this and this is based on my experience and observation.
Let us understand Inertia
Various meanings of Inertia
1. the state of being inert; disinclination to move or act
2. (General Physics)physics
a. the tendency of a body to preserve its state of rest or uniform motion unless acted upon by an external force
b. an analogous property of other physical quantities that resist change: thermal inertia
3. a tendency to do nothing or to remain unchanged.
Primarily it is 1. To maintain status quo without doing anything. 2. Delaying 3. To act only when influenced externally.
Many people come with a good intention of investing and creating wealth to achieve their various goals. They discuss in detail and are charged up so much they decide to invest immediately. They go back and then the inertia acts.
The reason could be various
1. The goals are not serious.
2. Maybe laziness to start and complete the formalities required.
3. lack of understanding and confidence in getting it started.
How they react
1. They are influenced by their peers. Friends. colleagues and very rarely relatives.
2. They hear success stories of their peers and follow them blindly
3. One of the important reasons is that I” have time and I can start later.”
What is the effect of inertia in Investing?
a. The early you start, you get to make more money. Even if you increase your contribution more. later, the corpus could be lower.
Read this article and know how delayed investing could be costly for you
b. Every one is confident of living more than 70 years and how many of them plan for their requirements in case they live longer
c. Earlier it was 20 – 40 -10 and now it is 25-25-25.
Earlier you could land in a job at 20, work for 40 years and live may be 10 years post retirement.
Now Many people study till 25 and work only till 50, another 25 years but have to survive for the next 25 years.
You require more qualifications for employment, you become unemployable after 50 except in exceptional cases and longevity in life means a Boon and a Bane. Bane if you have not planned & Boon if you have done your home work well.
So what are you waiting for. Over come the inertia. Take that interest and start investing at the earliest. It is a T25 game now. Play it well and be successful.
I am available to help you plan and build a portfolio. Do contact me.