IF you have mastered the skill of saving, tap yourself on the back and begin to challenge yourself to take saving on another level higher, this time from keeping your money to growing it through investing.
We all know how investing can be a risky decision in our financial journey but we also know that with a certain risk comes a victory that may just catapult us to financial success.
Now this success is dependent upon the risk that we decided to take, therefore, it is very fundamental that we know and study the things that we do when investing.
For starters, let us take our attention to warnings such as these wrong moves people do in investing.
MISTAKE1 – Not investing early
Setting aside money is good, it makes people good stewards of their very own finances but saving only does one part of the equation which is simply setting money aside.
If people want to grow their money, they need to consider investing early. Investment is not only about money but it is all about time.
Do you know that you can turn your P1,000 per year into P1 million in 40 years if you know how to use time and investment for your advantage? (For more info on how it works, please visit chinktv.com and choose HOW TO RETIRE AT 50)
MISTAKE2 – Not researching before investing
Do not invest if you have no idea about the investment action you are about to make. A good Internet research can help us understand the types of investment and the risks that come with it.
It is salient that we invest in companies that we actually understand and not simply those that we like. There is undeniably no reason not to be informed.
MISTAKE3 – Not diversifying investment strategies
In investing, eliminating the risks can be difficult simply because investing in itself is a risk. However, we can minimize the market risks if we learn to diversify.
Consider investing in various companies so that the risks are also distributed and not simply concentrated in one investment chunk.
MISTAKE 4 – Not being patient
Investing involves playing around with money and time, therefore, it is important that we know the difference between a green, yellow, and red light. Patience plays an indispensable role in investing, when we wrongly make a move, the result can be disastrous to our investing.
So, we need to take time and allow time to play its part – don’t do premature investment decisions just yet, be patient.
MISTAKE 5 – Not paying attention to the risks
Everybody wants to grow their money. Those that have already started investing their money wants to double its value the soonest time possible and this enthusiasm often ends up with the investors being too confident in taking investment risks and not paying attention to these risks which is also the most common reason they end up losing their money instead of growing it.
MISTAKE 6 – Not making your own path
When it comes to investing, people want to see and compare their status to others and they want to check out their strategies and opinion on a good investment move. This is not wrong and in fact, it can even be a strategic move.
However, if people simply follow what others are doing, there is a good chance that they will only be part of the herd, they are unable to create and enjoy their own investment journey.
MISTAKE 7 – Not adjusting
Investment is a journey. People who have just started their career and their investment journey are expected to invest a portion of their salary and as their income grows, so does the investment.
Younger people with promising careers can also be risk-takers when it comes to investing their money but this should not be the case for those nearing their retirement. It is important that we learn to adapt to changes when it comes to our investment strategies.
MISTAKE 8 – Not seeking help
Investing can be a complex strategy for beginners. Asking for help can be advantageous especially to those who are new to the concept. A lot of investors think that investing is an easy breezy idea so they take matters into their own hands, they make decisions that are unclear and they do not consider asking help from those who are already experts on the matter.
THINK. REFLECT. APPLY.
Where are you in your financial journey? Have you considered investing your money to grow it?
