NEW YORK (MoneyTalksNews) —The concept of saving for a rainy day has probably been around for as long as humans have. It’s virtually instinctive to prepare for an uncertain future by setting something aside.
It’s after we set aside savings that potential problems pop up. Because it’s not enough to simply save. From insured savings to stocks to real estate, we want our savings working as hard for us as we do for them – hopefully without losing anything in the process.
In the following video, former stock broker, CPA, and Money Talks News founder Stacy Johnson reveals some mistakes investors make. Check it out, then read on for more.
And now for a more complete list of dumb moves investors make…
1. Not investing
The biggest mistake investors and savers make is not doing it.
Don’t wait for that raise, inheritance, or lottery win. Start today, right now, with whatever you can. Consider this: If you can save just 5 bucks a day every day for 30 years, and earn 10 percent on it, you’ll end up with $343,693. That’s enough to change your life and the lives of those you love.
And if you can’t find $5, start tracking your expenses and see if you can. We partner with PowerWallet, a free service that lets you set goals and automatically tells you where your money’s going. If you’re not using it or something similar, start.
2. Investing before doing your homework
When it comes to investing in risk assets like stocks, one mistake I’ve made is going on “gut instinct” and 20 minutes of Internet research.
In college I decided to start investing as a way to build my retirement. Good plan. But I also decided to invest in companies I knew and liked, rather than actually understanding them. Bad plan.