"How NOT To Lose Money: The 2 Big Investing Mistakes That Lose People Millions!"
Do you know the reason most people lose money in the market?
It's not because they're "bad" investors.
It’s because they are making two key mistakes...
The two mistakes that cost people massive amounts of money …
- Mistake #1 - investing in the wrong funds
- Mistake #2 - not being invested at all.
Think about it: how many times have you heard a story about someone...
….bemoaning how badly the investments they are in are performing
or
...wishing they had started investing years ago.
If only I had known this 10 years ago Ann… I hear this ALL THE TIME!
Worse yet, how many times has this happened to you?
The thing is, this is not your fault.
The challenge is these two mistakes often work together and feed on each other in a double bind.
A damned if you do, damned if you don’t scenario.
Fear of investing in the wrong thing makes people sit on the sideline and never invest at all. So their money sits on the sidelines with them doing nothing, losing the growth it could be getting.
Time passes, they grow more worried about having less time to get their money working and more afraid of losing what they have by getting it wrong…
Paralysis…
…more inaction, more time passes..
More lost money.
The downward spiral to wasted opportunity and the very thing they fear - accelerates!
Or the fear of getting it wrong and believing investing is complicated takes them on the path of handing it all over to someone else to do it for them!
At least if someone else gets it wrong you can be pissed off at them!
They outsource their financial wellbeing to a financial advisor (a.k.a expensive fund sales person) and hope that person knows what they are doing - without any ideas of whether the advisor is actually investing their money in good quality funds and worse without understanding the devastating impact that advisor's costs will have on their financial future.
And in volatile uncertain times like these - the problem gets even worse. Click bait type headlines of “crashing markets” , “The great reset” what ever that means LOL, and the “End of the financial world as we know it” keep the uninformed scared and frozen in inaction.
Frozen in never investing land, or handing this over to someone else - ensures they never create the wealth they want!
The only way to ensure you don’t lose money through fear, inaction or outsourcing your financial wellbeing is through knowledge.
Get informed.
Learn how to invest in a safe and secure way.
Understand the fundamentals of investing:
- Know what your unique freedom number is.
- Know the difference between investing and trading.
- Understand why passive index tracker funds outperform actively managed funds.
- Learn a bit about different types of assets and asset allocation. Here’s a great article on what I call the Investment Pyramid.
- Understand how the extra costs being charged by a financial advisor and actively managed funds are on your investments performance will impact how much your money grows and how just 2% in unnecessary costs will ensure you get 70% less than you could be getting! That’s a LOT of money to lose through ignorance.
If you are NOT financially empowered, you will be overpowered.
Participate in your own financial rescue - stop sitting on the sideline or looking for someone else to sort this out for you.
This is not complicated but it does need you to get into the arena, get some knowledge and get your money working.
I know it can feel overwhelming and scary - but never getting money working for you, never knowing how much is enough or whether you will be able to ever stop working… that’s far more scary.
Just take one step, then the next… learn, implement, gain confidence, gain competence and soon you will be a savvy investor with your money working hard for you.
It really can be that easy.
Big love
Ann
