Many many years ago, humans invested in gold and lands and livestock. We understood the need to keep money for the future, in hopes of having them double or triple in value. However, with technology and time, investing has evolved to what we have now: stocks, real estate, bonds, crypto and so much more.
Many of our parents and the parents before them never got around to investing for many reasons, ranging from lack of money to not having an idea how investing works.
Today, investing has become a wave, which is great as more people will grow and protect their wealth.
However, we’ve also found that many are going about investing the wrong way, and we would like to address some of these mistakes so that, hopefully, you correct them before they derail your investment journey. So without further ado, here are five ways you might be doing your investing wrong.
1, Having a lottery mindset
A lottery mindset is putting in a small amount but expecting a big payout in a short time. Many people go into investing with this mindset, which is why they fall for Ponzi schemes, give up on investing too quickly or are disappointed by actual investing results. Investing is not a way to “blow” overnight. It is a disciplined way of securing your financial future and achieving your financial goals by purchasing and owning assets that will gain value over time. It is not a way to get rich quickly.
2, Trying to trade stocks or forex by yourself.
These days, a lot of platforms allow you to trade by yourself, which may seem easy; all you need to do is find your favourite companies and then buy or sell their stock. But look at the numbers: you pay a fee when you buy, andyou pay another fee when you sell. You typically don’t make enough returns to cover both expenses and still make money. A lot of times, you lose money, and still pay those fees. You also don’t invest based on what delivers the best returns, but based on what is popular or in the news. And rather than stick to your investments, you sell at the first hint of bad news. That is a terrible way to build long-term wealth.
3,You do not use Risevest
Yes, that’s right. We know. Hear us out: on risevest, you have not only stocks but our rental properties and fixed income assets providing strong diversification even in down times. And all the work is handled by experts who track all the support and share updates with you, so you don’t have to do any of it yourself. All your investments and returns are in dollars, so you have excellent protection from inflation and devaluation. And finally, risevest charges you only 0.5% in management fees to invest in high-quality assets and manage your money for you. So if you are currently not using risevest, you need to ask yourself why.
4,You invest funds that you need within a few months
Some people treat their investment accounts like they treat their bank accounts: they deposit today, and withdraw tomorrow. Or next week. Or next month, which is a wrong way to invest. Only invest money you do not need in the short term. Investing is like planting a seed. If you are a farmer, will you uproot the seeds you plant every few weeks because you are hungry? And if you do, will you get a great harvest? No. Investing takes at least a year to show results and around three to five years to see compound growth. So if you need money you can withdraw from time to time, create a short-term plan, and leave it in your wallet or emergency fund. Don’t invest it and then break it within a short period. You won’t get good results that way.
5, Last but not least, you like to follow the crowd
Anywhere belle face is not an investment strategy. “This is where it’s happening” is not good investment advice. Stop chasing what is hot, what is cool or where everyone else is investing, and find the right place and thing to invest in. If you need to check where everyone is investing to know where to invest, you probably should not be doing your investing by yourself. It might be true that there is safety in numbers, but it’s important to have a mindset of your own and also do thorough research before you invest . Invest in things you understand that are resilient and will perform well over time. Your investment journey is not a popularity contest.
So that’s it. Till next time, keep funding your Rise plans. And if you are yet to get on the Rise wave, visit our website to sign up or download Risevest from the app or play store.