5 Common Investment Mistakes To Avoid
Planning for your future is always on trend, and investing is one of the best ways to get started. When you invest, you’ll start seeing returns and a substantial growth in your long-term financial health. In spite of these indisputable benefits, there will always be risks involved too, and for this reason, many feel hesitant about jumping in with their hard-earned money. Fortunately, you can curb these risks with your own investments, and increase your chances of achieving long-term financial success by avoiding these five common investing mistakes…
Waiting Too Long To Start
Naturally, the thought of investing your money can be intimidating. Perhaps you feel too young, too poor, or too inexperienced, but the truth is that it’s never too early to start thinking about your future. While you don’t need to spend hours and hours day-trading pennies to get started, it certainly can’t hurt to explore your investment options.
Start simple by doing some basic research into stock options, or even a retirement fund through your employer. Additionally, many financial companies are happy to work with you on investing small amounts, as you slowly learn about the world of investing.
Trusting Sketchy People
Carefully choosing who you trust is an important life rule in general, but especially when money is involved. Beware of the countless “get rich quick” schemes that have become popular lately, as they can be very well-marketed – convincing many people to wrongly invest in them. Usually, those who invest only go on to ultimately regret their choice down the line. Contrary to the name and marketing ploys, these schemes will definitely not make you rich, and at best, will probably cause you to burn a few bridges with your Facebook friends for trying to sell them on the scheme too.
To ensure you’re safely investing your money, you are best off doing your research and finding a trusted financial advisor to answer all your important questions. In the end, you know what’s best for you, but finding a professional to help can get you heading in the right direction.
Not Understanding The Investment
You already know not to invest with shady people or ventures, and the only way to guarantee this is to understand exactly what you’re getting into. As your teachers always said in school, there are no stupid questions – especially when it comes to your hard-earned money.
Therefore, when your friend asks you to invest in his idea for a new iPhone app, you probably shouldn’t immediately agree without at least some careful thought. Ideally, do research, ask questions, research some more, and obtain a second opinion before deciding whether or not to proceed. Even if it’s your financially savvy co-worker recommending you invest in a particular stock, it’s important to look into it first. Just because it’s right for him, doesn’t mean it’s right for you, and you need to have confidence and a solid knowledge of all your investments in order to be financially successful.
Money Can’t Buy…Well, Money
Sure, there’s nothing wrong with an inspiring book meant to guide you toward wealth and happiness, but the bottom line is that there’s no universal secret to financial success. Any expensive book or online course making these promises is simply lying to you.
Next time you see an ad promising you’ll make $2,000 a week with “this easy method,” you should immediately head the opposite direction. More than likely, the course you are redirected to by the ad will cost that much or more. Like most things in life, the secret to financial success is patience, hard work, and good decisions, which are all things that can’t be bought. Put your faith in yourself and your financial advisor, and you’ll be just fine.
Setting Unrealistic Goals
If you’re hoping to make thousands of dollars each month on your recent investment, you’ve probably watched a few too many Wall Street movies. Investments are certainly a way to grow your money and become more financially secure, but this happens over years, not days, weeks or even months. Instead of hoping for the best, speak with your financial advisor regarding an estimate of how much to realistically expect in return. Even if you aren’t thrilled with the answer, don’t give up on investing. Remember that you’re in this for the long game.
Make The Most Of Your Money
Why should you start investing? It’s 2020, and you can have a multitude of financial resources and research materials right at your fingertips. You can quickly identify the most successful stocks or you can easily find a financial advisor that you can form a trusted relationship with. Of course, it’s also critical to avoid poor investment decisions that so many before you have made. Trust your gut, and keep in mind that only you and your financial advisor know what’s best for your money. When done correctly, investing can be one of the best choices you’ll make for your long-term financial health.