Investing is a great way to secure your financial future. It will allow your hard-earned money to go further and provide for your family. Your investments will help you retire in comfort or pay for your kids to go to the best college. Investing gives you peace of mind and will usually earn more than the interest in a savings account.
Investing takes place in many forms. It could be putting your money in property. It could be investing in stocks and shares or buying gold from United Precious Metals. However you choose to invest, it’s vital that you take care of your money. We’ve seen countless investment disasters in our time. Yet, we still see the same mistakes over and over again. Here are some of the biggest. Learn them and avoid them at all costs.
Mistake no. 1: Having no plan
Sensible investing requires a direct plan of action. What do you want to achieve by investing and what are you goals? Answering these questions will determine how you invest, where you invest, and what decisions you make. For example, if you’re a 30-year-old investing for retirement, you don’t need to worry about market fluctuation. You can generally assume that over the next 40 years, the market will ride out the dips and follow an upward curve. If you’re investing for your kid’s college tuition however, you might need to withdraw the investments in five years. Fluctuation is a very real concern here as there may be a market dip in that period. Different plans require different approaches. Define your plan.
Mistake no. 2: Spending all day checking the financial news
Many investors are obsessed with checking the latest fluctuations and market news. It’s a mistake that many first-time investors make. They refresh their stock market apps and worry about the currency values. They visit forums and worry about the hot tip that just emerged. Let’s be clear, this is all useless information. Once this information is out there, brokers and companies are already reacting to it. It’s already happened. That big tip you saw? Hundreds of brokers have already jumped on it, bought shares and it’s about to plummet in value. Forget the financial news, stick to your long-term game plan.
Mistake no. 3: Expecting to get rich quickly
We have been somewhat deluded by extravagant headlines and stories of lucrative brokers. The real world of investing is a very different story. It’s all about taking your time and planning for the future. If you try and ‘play’ the stock market, you will eventually lose! Trying to buy and sell on minute-by-minute basis to generate big cash is a dangerous game. The richest guys in investment are the ones with a long-term game plan.
Mistake no. 4: Putting all your eggs in one basket
This is the biggest and most common mistake of all. If you put all your money in one investment, or even one industry, it’s at risk. If that market collapses, you’ll lose everything. Spread those investments across shares, property, gold and currency. Safeguard your money.
Investing is all about sensible, long-term financial planning. Don’t find yourself on the wrong end of a bankruptcy case.