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There are a lot of mistakes that investors make when it comes to investing the right way.

In this lesson, I'm going to walk you through some of the most common mistakes investors make and how you can avoid them.


Key mistakes to avoid when it comes to investing

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1. Waiting to Invest

When it comes to investing, time is your biggest asset.  Starting sooner rather than later gives you a better chance of greater returns. Not only do you have more time to contribute to your investments, you also have more time for your investments to grow over time and benefit from the magic of compounding. Still nervous about investing? Go back over the content of this course, pick a sector, do your research and talk to an expert who is not trying to sell you anything. 


2. Investing with emotion

Watching every dip and climb the stock market makes everyday is a bad idea. Investing because your best friend or family member said so is a bad idea. Instances like this, are recipes for disaster. Investing requires you to be objective and put emotions aside. You’ll need to ask yourself questions like -  does this investment make sense? do I understand it? what is level of risk? what is the rate of return? How much time am I able to invest?. Put emotion aside and make your investment decisions with a clear head.


3. Trying to time the market

Your focus should be on understanding your investments and creating a long term plan that aligns with your life & financial goals. Once you have a solid long term investment plan in place, you can become more conservative as you approach the time when you'll need your money.


4. Expecting overnight returns on your investments

There's no such thing and if anyone is trying to sell this to you, run! Investments require time to perform and grow in value. Rome was not built in a day - remember that.


5. Not considering taxes in your long term plan

Understanding what your potential tax burden will be is critical to your plan and you'll need to make sure you factor in how much in taxes you will have to pay on your earnings. This way you can ensure you are achieving your financial goals from investing in addition to your tax burden. A financial advisor or a tax accountant, can guide you through this conversation around taxes.


Now you know what some of the biggest investment mistakes are, you can revise your strategy accordingly and set yourself up for even greater success with your money over the long term!

Woot woot! You are officially a Clever Girl Investor!