“A person often meets his destiny on the road he took to avoid it.”
Jean de La Fontaine (1621-1695)
Here I have summarized six of the most common money mistakes investors tend to make. If any of them strikes home with you …
Why not resolve that you, too, will “know better” — and do better!
1. Becoming paralyzed by how much you don’t know.
The fact is, you can begin investing effectively with only a few basic principles under your belt!
2. Putting off financial planning until a crisis occurs.
Deep down, you do know that you’ve been putting off essential planning. Resolve to take action now, before any more time goes by. Believe it or not, peace of mind feels much better than procrastination!
3. Focusing only on the short term.
The amount of time retirees are spending in retirement continues to grow, so the amount of money we’ll need to live on continues to increase. This knowledge should encourage us to work even harder on investing for the long term.
4. Investing only in “safe” choices.
A short-term focus tends to steer us toward such choices as savings accounts, CDs, and money market funds, which offer excellent short-term safety but may not keep pace with inflation in the long run.
Investors should also consider including investments such as stocks in their portfolio that may offer excellent growth potential.
5. Refusing to seek assistance because you’re sure you can do it yourself.
Missed investment opportunities can cost you megabucks!
6. Leaving your future financial security up to someone else.
To avoid making this biggest mistake of all, resolve to start every new day by reminding yourself:
“If it’s to be, it’s up to me!”