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6 Common Financial Mistakes that We Commonly Make!
Building money gradually and consistently is the goal of effective financial planning. Setting precise goals, saving regularly, investing those resources, and safeguarding your assets are all part of it.
6 Common financial mistakes –
1. Money Lying idle in bank's saving account
This comes on top of common financial mistakes For most people, money is best saved in a savings account. The interest earned on your savings could be used to save and multiply your wealth over time.
2. Not giving your investments time to grow
Time is crucial when it comes to investing. To optimize your earnings, you should hold investments for as long as possible. There is a quote "You invest with the expectation of fair returns over a lengthy period of time,"
Investors pulling out of an investment because they did not double their money in a set amount of time, usually days or weeks, is a common mistake Williams sees.
3. Ignoring inflation
While taking into account a rise in income over time, it's also important to factor in increased expenses and a decrease in the worth of money due to the annual overall increase in prices of popular products and services.
Over there on "safe" investments like savings accounts, bank FDs, and government bonds will result in your portfolio returning less than the rate of inflation.
4. Investing Cash You Can't Afford to Lose
Studies demonstrate that putting money into the market in large amounts rather than small amounts yields a higher total return, but this doesn't mean you should invest your whole savings account at once.
If you only have enough cash to invest or an emergency cash reserve, you are not in a financial position where investing makes sense.
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5. Starting retirement planning too late in life
When you invest in financial instruments such as Mutual Funds, Stocks, RDs (Recurring Deposits), and FDs (Fixed Deposits) over a lengthy period of time, you will receive bigger returns.
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6. Chasing News
Investing on news is a horrible move for first-time investors, whether it's trying to predict what will be the next "Apple," investing hastily in a "hot" stock tip, or going all-in on a rumor of earth-shaking profits.
Professional firms compete with investors in that they not only obtain information as soon as it becomes accessible, but also know how to correctly analyze and act on it.
To avoid these common financial mistakes try consulting a financial advisor near you or call us on +91- 9595889988