Its mostly about knoledge. People dont know how to invest or just are not ready to take the risks. Working in a fast food restaurant sounds much safer of a job to most than the stock markets where prices and such tend to fluctuate a lot. People also feel that money spent on food is a better way of using it that investing it to some unstable statistic.
I guess this is part of a problem. People think that the stock market is for professionals and only for the rich. It doesn't need to be a full time job, a few minutes per month is enough if you have a portfolio of a few large and stable companies. And by no means does the stock market need to be your main income either, the huge majority use the stock market for additional income and not as a substitute for work.
Where I live now, third-world very poor country... everything can be bought on monthly payments... and ALL they advertise is the monthly payment you need to make... and then it is for 2 or 3 years. the people end up paying 5x´s the price for the item, but when you see it as $5 per month, it seems like a steal for a digital camera
That is just horrible. I don't mind the plans where you don't pay interest or pay a very small amount... I can understand that for larger things like furniture etc. But in any other case it's just going to lead to trouble in the long run.
That's how these loan companies make all of their money though. High APR, and they are relying on people who can't afford to buy something outright to take them up on these fabulous offers. Trouble is, if you end up paying 5k for something that's not worth 1, the offer doesn't seem all that fabulous anymore does it?
it's quite horrible, isn't it? It's almost like tricking them into paying more, when they really don't need to. Imagine having to keep on paying for something even after it broke. The thought that there are probably people out there stuck in a situation like this annoys me.
There are numerous reason why I think people don't invest, one is because investing is risky and people don't want to lose their money. Also sometimes people might not have the funds to invest and another reason is because people do not understand how the stock market operates.
While it is risky, you would think that more people would do it due to the fact that there is not as much competition because less people in America mess with the stock market. Also, there are multiple ways to understand and minimize the risks as well.
Crimson agreed with me. I'm honored America is plagued with capitalism and the bigger is better attitude. I like capitalism, but it made my country into something that no country should ever be whenever it comes to greed and how we manage our finances.
