When it come to investing, we all make mistakes. Luckily, they are usually minor and easy to overcome. But four mistakes are so huge that just knowing about them can add hundreds of thousands of dollars to your personal net worth over your life time. The best part? You don’t have to be an expert to avoid them.
Mistake #1: Being a Nonstarter
A startling number of would-be investors simply stand on the sidelines and miss out on the greatest builder of wealth available to the average (law-abiding) citizen. Many Americans just never save or invest anything at all. If you haven’t yet you should start investing now.
Mistake #2: Waiting Until…
The second mistake is intending to start, but waiting too long. Too many people put off investing with a perpetual series of untils. Until we get out of school, until we land that next job, until we see what the others do, until we buy that new car, etc….
If you remember just one thing about investing, it should be the incredible power of getting started early. A mediocre investor can, with just a few years head start, easily out-earn a top dog professional. Every day counts.
Mistake #3: Fearing Failure
A third mistake too many investors make is playing scared. Every investor I’ve ever met has suffered down years, idle years and even the greatest investors in today’s world have invested in stocks and real estate that did not pan out. Investing for the long term is alot like basketball and shooting free throws. Chances are , your going to “brick” a few shots, especially in your rookie year. Don’t let the fear of a setback throw you off your game.
Mistake #4: Expecting to get rich Quick
Finally, practice patience. If you don’t have the temperament to let the principle and equity work for you (depending on the type of investment) you probably won’t get very far as an investor. Put simply, there is no way to get rich quick as an investor. You have to do your due diligence, have an exit strategy, and invest wisely, but be sure to get in the game and continue to educate yourself in the process.