Actions that might harm your investment plan, and delay achievement of your financial goals
Procrastination
It is the root of all evil. Deferring your savings, investment, and financial planning can be detrimental to your financial health. Instead, defer any lifestyle expense that might be pushing you to defer your investment. Start investing today and achieve your goals comfortably!
Investing without a realistic goal
It is destructive. Set realistic goals that are measurable and achievable through available investment options and invest accordingly. Do not plan your goals with speculative tools.
Trying to time the market
This could cost you heavily. Do not try to time the market you will end up wasting your valuable time, energy, and money. Time in the market is more valuable than trying to time the market. Understand and reap the benefit of compounding. Always invest with a long-term perspective. Invest regularly and systematically.
Trying to create overnight wealth in the market
It is a myth. Investing by nature is a long-term process. When it comes to investing, time is important. Ideally, you should hold investments for as long as you can to maximize your returns according to the goal. Plan your goals.
Over diversification
It is never-ending. Diversification is good for your portfolio but only in moderation. Take expert advice.
Investing directed by emotions
Hold yourself back. Rebalancing periodically is the best way to stay on track with your plan and achieve the best risk-adjusted returns over time.
Lack of financial discipline
It is an enemy. To create long-term sustainable wealth, invest periodically & consistently.
Lack of awareness
It is hurting you. To make financially conscious & prudent investment decisions we need knowledge and the right advice.
Copying others’ portfolios
It is not advisable. Adopt the investment philosophy, not the portfolio. Your desires and your goals are specifically yours and so should be your plans to achieve them. Get a customized investment strategy.
Blindly following anybody’s advice
It is no good for you. Consult an expert. Do not take investment decisions based on advice from people who do not know your personal financial situation and goals.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. While full efforts have been made to ensure the accuracy of data and numbers, no responsibility is taken for any errors or omissions. Tax implications on insurance, investments and returns from related products may change due to updates in tax laws. Always consult with your financial advisor or insurance expert before making any investment or insurance decisions. The author is not responsible for any financial losses or damages incurred as a result of relying on the information in this blog.
