Here are 6 mistakes I’ve been seeing my clients make when they got started investing:
1️⃣ They Don’t Invest
When you learn a new skill you need to APPLY it.
2️⃣ They Don’t Have An Emergency Fund
Before you get started though you should make sure to have at least one month of expenses covered as an emergency fund.
3️⃣ They Invest Too Much
People tend to invest too much at once because they don’t have a plan, a strategy they follow. I always advise my clients to lay out their strategy in advance so when they do get larger chunks of money (i.e. from a bonus or tax refund) they already know how they are going to handle it.
4️⃣ Not Enough For The Future
Even though I always say that you can get started with as little as $25 a month you shouldn’t stay at that level for too long. At the end you do want to build up an amount that will allow you to cover your expenses in the future.
5️⃣ They Don’t Consider Taxes And Inflation
Whatever your investment goals are, you need to deduct the tax portion besides your broker fees to get your net profit. And then there is inflation, so you should consistently increase your investment amount to keep up.
6️⃣ They Aren’t Honest Towards Themselves
Wonder what this last mistake is all about? ▶️ Watch the full lesson (use Chrome browser):
Don't make the mistake others make. Spending money on the stock market, doesn't say you Re a good investor. Making money is by avoiding the following 6 things.
Posted by Lukas Xu on Wednesday, 29 April 2020