Investment is not an easy trade; it needs calculations and deduction. Even though you have been investing for quite some time or are new to this, you will need help. The experts are here so that we can learn from their deduction and take the first steps. This doesn’t mean that we will not make mistakes, but we will learn when we do.
The industry experts have also made many mistakes and have learned from them. Their advice will not harm us. Instead, it will help us invest smoothly. In this blog, you will learn about five financial mistakes that experts are saying not to make.
Without further ado, let’s begin our discussion and find out what the industry experts have to say about financial mistakes.
Experts Advice Not to Make These Mistakes
Let us have a look on what the experts have to say.
1. Do not opt for trendy stocks said, Suze Orman
Personal finance expert Suze Orman is also the author of “Woman and Money,” a bestseller. She said she was tired of watching millennials purchase and sell stocks based on what is trending or the companies that are momentarily spiking. She thinks that this indeed is the biggest mistake that young ones make.
The young people will decide that one company is doing great and they should invest there. But if you try that out, you might end up being right or wrong. She advises that instead, people should focus on index funds and ETFs. This not only teaches the young ones to trade also helps in earning a steady rate of return.
2. Changpeng Zhao said invest wisely when it comes to bitcoin
Changpeng Zhao is the CEO of Binance, and one of the early investors of bitcoin. Unlike many, Zhao did not believe that bitcoin is a passing phase, and he invested in bitcoins thinking one day, it will be the new payment method.
It seems that he was close enough and secured the right amount of funds for himself and his company. He advises people to invest wisely when it comes to bitcoins, as just like stocks, you can lose your money if you are not careful.
If you are interested in bitcoins, you can register via bitcoin pro and start trading now.
3. Do not allow the credit card people get rich from your finances
The ABC’s star of “Shark Tank,” Kevin O’Leary is also a financial expert who said that the credit cards’ high-interest rates could rip you off and must be avoided. He also added that this is one of the biggest mistake young people make assuming they won’t have to pay for the debt. However, that is not true; if you fail to pay the credit, you will have to pay extra. Hence, it is advised by O’Leary that you should spend as much as you can pay.
4. Do not allow savings to cost you money said Danielle Town
If you are just saving your money with investing anything, this will later charge you, said Danielle Town. The author of Invested: How… My Money (with some assistance from my father). Due to inflation, when the prices rise, the value of money becomes less influential. Something that values $137.4 in 1968 will the same as $1000 safely kept under a pillow 50 years back. But if you had held it under compound interest, you would have received $20,000 when the ROR is 6%.
5. Do not buy a new car said, David Bach
Another huge mistake is purchasing a new vehicle, said David Bach, a self-made millionaire. As soon as you buy the vehicle, you will start losing the value of the vehicle. Additionally, he said by the end of the first year, the amount will decrease to 20% to 30%. Hence buy a car coming off lease that you can use and not incur loss over the years.
Conclusion
There are many experts in the industry, and they belong to different financial sectors. Investment is more or less the same thing in all the financial industry. Either you invest and watch the money roll or don’t expect volatility and other underlying factors, incur a loss, and other such factors. However, spending money is the best way to earn cash to date. So, if a few mistakes are omitted, you will be a successful investor.
This post was published on August 21, 2020 6:24 pm