3 Biggest Mistakes in Investment

By | 07/17/2019

Investing is a big buzzword nowadays and it’s almost impossible not to get into one form of it or another. Having an investment feels like being more financially secure, but not many know that it could also put you at high financial risk. Before you make your first investment, let’s see what the 3 biggest mistakes in investment are.

Worst Things to Invest In

Before you decide what to invest in, let’s talk about what you should not invest in. Why is there a list like this, you may ask? It’s because there are entities that provide dead investment opportunities. Here are the three biggest investment no-no’s:

  1. Pyramid schemes

A pyramid scheme, which is different from a multilevel marketing business, is when you are asked to invest money and expect returns by inviting more people to invest money. There is no product. Just promises of return on investment through recruitment in sequential order. Remember, no product, no fiduciary obligation, no investment.

  1. Fake gold markets

There is a trend going on that says we should invest in gold. What people don’t understand is that means you should buy gold directly from suppliers accredited by your country’s department of treasury. Buying the idea of gold is not the same as buying gold itself. You can buy shares of gold from a gold mine. However, you should not buy gold from a company that promises that they have gold.

  1. Any stock option that requires financial education

These types of investments are the types that pose high risks and no returns. Check out this list and avoid them at all costs:

  • Penny stocks
  • Commodity Futures
  • Tax shelters
  • Digital currencies
  • Alternative investments
  • Collectibles
  • Binary options

It is best to look over dissertations, essays, and articles that have been peer-reviewed to find out more about these bad investment opportunities.

Best Things to Invest In

Now, let’s see what you should invest in. These are just three of your best options, but there are so many more that you could look into:

  1. Retirement funds

These types of investments allow you to reap the rewards once you retire. You can retire early if you want to, but prolonging the growth of your fund means getting more out of your investment in the future.

  1. Real Estate

This requires a bit of research on your part, but the best investment is a home that you will own. It will also be part of your list of assets. If you have more to spend, you can invest in buying real estate for profit (flipping houses, rentals, etc.)

  1. Small to medium-sized enterprises

Businesses will never go out of style. You just need to invest in a product or service that will be needed forever. Do your research and invest in businesses or start your own. Make sure you are dedicated to making it work, even if it’s a side business so you can get the best return on your investment.

Biggest Mistakes in Investment

Now for the biggest mistakes anyone can make when investing:

  1. Too good to be true investments

If anyone tells you, invest $100 and you will get $300 back immediately. No one can multiply the money that fast unless it is illegal. When someone offers something that is too tempting and not trustworthy enough, run the other way.

  1. Investing without knowledge

Someone may offer to teach you about a certain investment opportunity, but you are better off learning about this opportunity on your own. Look at public income disclosure records. Check for business registrations, customer complaints, and more when you are thinking of investing.

  1. Investing your life savings

Your savings are not your investment fund. You should have a separate investment savings account in your bank if you plan on multiplying your money. Savings are for rainy days. Without it, you will have to declare bankruptcy and homelessness if your investment does not pan out.

Take care of your money and avoid the money traps we mentioned at all costs. Don’t make these investing mistakes so you can live a financially secure life. So now you know why investment is important and how to make it right so now you maybe interested in this importance of saving money essay, because if you have money you totally need to know how to keep them.