Before the race out for the rest of Investing Basics, there are some points to consider carefully before proceeding. These are common mistakes many people make when considering what to do with investment.

1. Do nothing. There is no guarantee that the market will rise the first day, month or even year to invest in it. But there is a guarantee: do nothing not to ensure a comfortable retirement.

2. Beginning later. The postponement of his career is the second investment of not investing at all in the list of sins of investment. You already know that the earlier you start the better you are. (Take another look at the example compounds we turned up.) If you’re already past those formative twenties (do not look a day over 32 for us), we rewrite the first stumbling block that says “Do not start now.”

3. The investment before paying their credit card debt. If you have money in your savings account and you have revolving debt on your credit card, pay off. Many credit cards have an annual interest rate of 15% or more. Let’s say you have $ 5,000 to invest, but you also have $ 5,000 of debt on their credit cards with annual average interest rate of 18%. It does not take an astrophysicist to realize you’re going to have to get a yield of 18% after taxes just to pay the costs $ 5,000. Paying off debt first, then think about investing.

4. Investing in the short term. Only invest money in the short term you really going to need in the short term. To invest in the stock market will not need a minimum of three years and preferably five years or more. If you need your money next year for a down payment on a house or family Caribbean cruise, use a short-term and safer haven for their cash, like money market funds or CDs.

5. Reject free money. You never drop a dollar if he was offered without conditions. That’s what we’re doing if your company offers a 401 (k) or similar savings plan for retirement with an employer match and you’re not participating. Enjoy all the tax advantages, employer-matched savings programs.

6. Playing it safe. If you are young, most of your investment dollars should be in the stock market. You have enough time to weather any downturns in the market and reap the rewards of long-term benefits. Although you may want to transition into bonds later in life as you depend on their investments for income, stock should make up a large part of the portfolio of each investor.

7. Go to the terrifying. Not all investment is for everyone. Even if you’re a daredevil, you should not pour all your money on something that could end up going down the drain.

8. Videos collection or lottery tickets as investments. If old comic books, Barbie dolls, and the team left the exercise could be used to finance retirement, do you think the stock market exist? Probably not. Do not make the mistake of thinking your jewelry, Beanie Babies, or the lottery will help in the past year.

9. Trade within and outside the market. We believe the best way to invest is the long term. Pick your investments well and reap greater rewards in the long run than I had ever dreamed possible. Trade in and out of the market and will have to pay fees that chip away at their statements, and possibly miss out on gains that long-term investors enjoy with much less effort.

Congratulations mate! You’ve made it through the first part of Investing Basics. (Bet you did not even break a sweat.) You have been witness to the power of compound interest and understand how some common mistakes can ruin even the healthiest investment plan.

Related posts:

1. The Other tips to remember when start investing
2. 8 Steps to Investing in the Stock Market
3. Let Investing
4. Tips to improving investment
5. Active reinvesting in various businesses