Friday, December 24, 2010

Investing Mistakes to Avoid by Ravinder Tulsiani

Investing Mistakes to Avoid by Ravinder Tulsiani

Along the way, you may make a few investing mistakes, however there
are big mistakes that you absolutely must avoid if you are to be a
successful investor. For instance, the biggest investing mistake that
you could ever make is to not invest at all, or to put off investing
until later. Make your money work for you – even if all you can spare
is $20 a week to invest!

While not investing at all or putting off investing until later are
big mistakes, investing before you are in the financial position to do
so is another big mistake. 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.

Don’t invest to get rich quick. That is the riskiest type of investing
that there is, and you will more than likely lose. 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.

Don’t put all of your eggs into one basket. Scatter it around various
types of investments for the best returns. 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 a
few dollars. If the stock is a stable stock, it will go back up.

A common mistake that a lot of people make is thinking that their
investments in collectibles will really pay off. Again, if this were
true, everyone would do it. Don’t count on your Coke collection or
your book collection to pay for your retirement years! Count on
investments made with cold hard cash instead.

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online