You can’t be careful enough when it comes to investing your hard-earned money. The past performance of the company, details of the plan and the kind of investment, you can’t have enough points to be taken under consideration. After all, this will help you to achieve your financial goals and create wealth over a period of time. However, it has been noticed that even most sincere and cautious of investors make mistakes that damage their prospects.
Avoid these mistakes to enjoy hassle-free investments!
- As Warren Buffet rightly said, “success in investing doesn’t correlate with IQ,” you can’t act out on mere whims and fancy. You can’t act out amidst sheer panic or euphoria. Remember, patience is the key here. Be patient, large returns on investments demand sheer amount of patience and calmness, despite the ups and down of market, “friendly” advice of relatives and so on…
- Diversification is a good thing to consider, however, too much of it not only can dilute your attention but your prospects also! So, keep a tab on diversification and be patient with the variety too.
- Kill two birds with one stone by opting for flexibility with your investments such as insurance policy, PF account and FDs. While you see your money growing, you can also withdraw money for short term debts or important milestones in your life. However, do not forget to refill what you have withdrawn. Since it was our money in the first place, we don’t bother but we also forget to take compound interest and growth that long term investment with complete amount can yield you! So, be disciplined with your money and never be short of your financial goals when you need them the most!
- Turn a deaf ear to the market but keep your eyes open and mind even wider! The sensational stories and the all that drama that comes with every budget or ups and downs, can compel you to evaluate your options and chances are, none of it is going to be in your favour. Trust your instincts, but only gather the information that you think is right.
- It is always recommended to take the past performance and reputation of the company in account, however, this is not the guarantee of future expectations either! So, invest mindfully.
- Your investments should always be driven by goals. The goals to keep you and your family secure, when you aren’t earning, don’t have another source of income or when you have an important milestone to cover! So, invest wisely.