Investing is a good way to help your money grow over time. If you have money to spare at the end of each month, investing it is probably the smartest thing you can do in the long term. But, you need to ensure that you are investing your money intelligently.
Of course, learning all you can about the world of investment will help you to make all of the right moves, however, in the meantime, if you can avoid making these common investment mistakes for 2022, you will be on the right track.
Not speaking to a financial advisor
If you are just starting out and you want to make money rather than losing it, then you should really speak to a financial advisor who can look at all your information and tell you the best ways to invest it. This can be an independent financial advisor or a company like Fundamental Global that specializes in managing assets – it doesn’t matter as long as you get sound advice from the right people. This is the most important thing you can do.
Not investing in real estate
You might think that, with interest rates rising and relatively low yields, it is not the time to invest in real estate, but you’d be making a mistake. Real estate is still one of the safest areas to invest in long-term, and although interest rates are up slightly, it is also true that the economy is doing better and is set to grow even more, which means people will have more money to spend on real estater. Not only that but real estate was up around 20- percent last year, so it really does represent a solid investment right now.
Putting all your eggs in the crypto basket
Crypto is always in the financial news because it is with cryptocurrencies like Shiba Inu submitting returns of more than 43 million percent in one year, it seems like the way to make money in 2022. The thing is, the cryptocurrency market can be very violatile, and unless you are very experienced, you should probably not risk more than you can afford to lose on crypto. It’s fine to hold some crypto investments, but only as part of a diverse portfolio.
Using a high-cost broker
If you are making your trades using a high-cost broker, you really are throwing money down the drain. These days, there are countless investment apps like Robinhood and Chase Bank that are not only low-cost but which are even free to trade on when carrying out many transitions. Why pay for something when you really don’t have to?
Since trading can be done for free, many investors are falling into the habit of overtrading because…well it costs them nothing to make those trades. This can be a big mistake because although you might make a little profit in the short-term it will be harder to gain any momentum in the long term and that is where serious money is most often made.
Avoid these investment mistakes and give yourself the best chance of maximizing your money now and in the future!