Investing Mistakes to Avoid
You may have had experienced making a few investing mistakes. It is okay. As we always learn from people the only way to learn is by a mistake. There are however big mistakes you absolutely must avoid if you are to be a successful entrepreneur. Let me cite an example, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later.
I heard many motivational speakers who often encourage to make money grow. There was a story of a retired executive who after working for 36 years earned a huge amount. He literally rose from the rank and file. The company was his first and last job. He refused to touch his money. He was afraid of committing investing mistakes. This was caused by what happened to his former superior who retired much earlier. Accordingly that retiree made terrible investing mistakes. The entire amount was handed over to a nephew who was connected with a bank. Unfortunately the bank collapsed and was closed. The victim upon learning suffered a massive heart attack.
I am sure you are wondering what he is doing with his money? He withdrew all the amount and kept the cash under his possession. Literally he acquired the habit of lying down on his money! Everyday he would get all and lay one by one on his living room. Listens to classical music, reads all the newspapers and takes a nap. He refuses to commit investing mistakes.
Well the basic needs of he and his wife are all taken cared for by the their three married children.
While not investing at all or putting off investing until later are big investing mistakes, investing before you are in the financial position to do so is another big mistake. Here are practical tips :
1. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.
2. Don’t invest to get rich quick. Recently we were astonished by another scam which rocked the Philippines. People from all walks of life from a tricycle driver, retirees, policemen and big entrepreneurs were fooled in the quick rich scam. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
3. Don’t put all of your eggs into one basket. Investing mistakes begin by placing all in one form of investment. This is the most dangerous form of investing. Scatter it around various types of investments for the best returns. Explore and learn other forms of investing. This may be like getting into a franchise business. There are stock markets which offer tutorial and may be done online. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow – don’t panic if the stock drops. If the stock is a stable stock, it will go back up.
4. A common mistake that a lot of people make is thinking that their investments in collectibles will really pay off. I see people investing on jewelries. The excuse is it is a form of investment. However if the worst scenario come, attachment to jewelries is difficult. Again, if this were true, everyone would do it. Don’t count on your comic collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.
Where are you going to invest? You have options before you:
1. Lie on your money
2. Invest wisely
3. commit investing mistakes
Remember we all worked hard. Definitely we need to enjoy what we have earned.