3 LONG-TERM MISTAKES YOU CAN MAKE AS AN INVESTOR
Do you take charge of your life as an investor?
Do you make the right financial decisions by focusing on today and the future?
Planning for the future is a gift you should give yourself. The decisions you make today will haunt your tomorrow. Below are examples of the wrong financial choices you can make today.
- Failure to save for the future
Today you are earning well. You have a well-paying job. You have a thriving business and other sources of income. Unfortunately, you don’t realize there is a time all this might not be there. You may lose your job. The business can fail, and you might not have the energy to work.
If you don’t save today, you might live a harsh life in the future if the above situations occur.
You don’t have to wait for the time until you are old to save for retirement. You should not say you will start saving at the age of 50yrs if you are supposed to retire at 60yrs. If you don’t start saving early, you will not have enough wealth to support yourself in your old age.
Your decision of not planning today will affect the quality of life you live in the future. You may find yourself depending on your children and others for your upkeep.
- Not taking a health insurance plan
What would happen to you if the unfortunate happened and you fell ill today?
Do you have funds to cater for your hospitalization, buy your drugs and feed yourself and your family?
Without a health plan, you are more likely to fall into debt if you or your family member falls ill.
Don’t say that you eat healthy, exercise, and don’t need insurance. No one plans to fall ill.
Buying insurance is not a waste if you don’t get sick.
Failing to buy insurance is deciding to go bankrupt when undergoing medical attention.
- Investing too much in fixed deposit
Having a fixed deposit is a safe way to invest.
However, depositing all your money in a fixed account is not a solution. Cash in the fixed deposit does not change its value in the long run. You may think that your investment is growing, but it will never outgrow inflation.
Your life doesn’t improve with time because there is no growth.
Instead of the fixed deposit, why not work with something which will beat inflation, such as equity? You can buy stocks, shares, and bonds, which will be a saving and continue earning you money.
Make your money work for you.
Conclusion
Failure to buy health insurance is deciding to always pay your hospital bills from your income, which might not be enough. You will fail to safeguard your income and wealth from health-related emergencies.
When saving is not a priority, you are deciding to depend on your family and others when you will not be working. It is to lose control of your life as you will be at the mercy of others.
Choosing a fixed deposit is taking the fast and safest way out of investing. A fixed deposit doesn’t give your money a chance to multiply with time.
Think wisely, make the right decisions and invest for the future.
