Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you want to be successful. 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. Something is better than nothing.
Invest at the right time
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.
Take your time
Don’t invest in get-rich-quick schemes. 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 to allow your money to grow.
You should only invest for the short term when you know you will need the money in a short amount of time. When this happens, you should stick with safe investments, such as certificates of deposit.
Diversifying is key
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 your stock drops a few pounds either. If the stock is stable stock, it will go back up.
Don’t count on collectables
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.
So don’t count on your pottery collection, or your book collection to pay for your retirement years. Count on investments that you’ve researched and made with cold hard cash instead.