Acerbating our personal wealth building should not be a hard nut to crack. It is all about setting realistic goals and following them through to make the first move. However, age is a very precious asset that each is endowed with. The early ’20s is the prime age to start making your money moves but if you are past the age, now is the right time.
The path you take will definitely take you to the right destination. This will help you avoid making the wrong personal money investment that will make you fail in 10 years to come. Here are some 5 investment wrongs that may appear obvious but will come haunting you later.
1. Failure to Invest Early
Everyone knows the importance of investing but they never get started. It is easier to procrastinate than join an investment plan. For the smart lot, it is a habit that they adopt early enough. Investment is your future and waiting till late is just throwing the golden opportunity through the window.
It is up to you to decide where to put your investment or even what to invest in. the secret is to make the first move. Once you get started everything else falls into place. Investment is not a mirage; it is real and once you hop in, you learn the ropes while in the system.
Here are some simple ways you can get started with investing and eliminate the investing obstacle:
If you are employed, there are retirement plans that you can sign up and start investing. Set a percentage that you will be contributing every month and if it works, you can contribute more. Getting started is the most important step. Just to follow Warren Buffet saying:
“If you don’t find a way to make money while you sleep, you will work until you die.”
Not employed or your employer does not have any plans you can invest in? No worries. You do not have to be tech-savvy to use investing apps. All you need is open an account and fund it. These systems like robo-advisors are automated or you can check out M1 Finance or Ellevest that also manages your account and help you grow your portfolio. If you are an online goer, it is even easy to discover more investing apps. After all, the amount you invest should start working for you and the more, the better.
2. Smiling at Debt
We all love loans and that is okay; however when we are in denial of how much we owe plus the interest attached, then we are making the wrong investment move. Making small repayments months appear cool but if you allow it to become a vicious circle, you are making a dump personal finance move.
People under 30 tend to be in debt denial and this could lead to life financial impairment. Fixing your debts early is healthy. If you do not do anything about it, then it becomes your lifestyle and can linger on for the rest of your life.
According to statistics, the median household income is placed at $61,372 but according to the Federal Reserve, the average household in the US carries a debt of about $137,372. Simply put; “the average household owes more than twice as much as it takes in”.
The way out of your debt is to plan how pay and the sooner the better. You cannot wish away your debt but through a workable repayment plan, you are good to go.
3. Living Beyond Your Means
Financial pretense leads to living beyond your means just blind you and not the real financial world. You can only lead a lifestyle that you can afford. Do not pretend to be a millionaire in your 20’s by living a luxurious life that is not real. Why go out in high-end establishments while you can only afford a low-end meal at McDonald’s?
Stop living a lie and work hard to attain the lifestyle of your desires first. An empty bank account and debt is a lethal combination that can destroy your financial ambition and confine you to poverty for the better part of your life. If this describes your lifestyle, you need to get real.
4. Failure to Set Ambitious and Realistic Goals
Failure to set ambitious and realistic goals is your inner fear and limits what you can achieve. Make a habit to set crazy goals and plan to run with them. You need to stand firm and take risks that come your way. Failure to surround yourself with successful people is one way of failing in achieving your goals.
Peer pressure and negativity can put you down; they limit your dreams. Pursue your goals irrespective of the negative friend around you. Simply put; go for the scariest dreams, plan and follow them through and you will be home dry. Set your goal, come up with an action plan and execute; it is all about taking action without turning back.
5. Failure to Start a Side Hustle
Most successful people start working on their success in their 20’s and side hustles are a sure bet. With modern technology, you can easily create some passive sources of income. Any additional cash flow means a brighter future.
A side hustle can turn to be your core business. This is a career choice that can end up being your future asset. You never know when you can sell your side hustle for a fortune. You can get started with doing what you love most and it could turn out as your future business.