6 Personal Investment Plan Mistakes To Avoid

A personal investment plan can be the path to financial freedom for the well-informed investor. However, with greater freedom comes greater risk, so the individual investor should tread carefully.

Why Personal Investment?

No commission fees and cheaper transaction fees! Personal investment—either through direct company investment or online broker investment—takes the power out of a broker’s hand and puts more profit directly into the personal investor’s pocket.

6 Personal Investment Plan Mistakes

These six pitfalls can cause the personal investor to suffer greatly:

  • not becoming informed and staying informed about trends in the financial market
  • pulling all of your money out of the market at the first sign of trouble
  • keeping an undiversified investment portfolio
  • putting all of your money into the market (save some in banks)
  • taking one source’s investment advice without further research
  • not drafting a plan with long-term financial goals—and sticking to it
How to Start a Personal Investment Plan

Write down how much of your money you want to invest (including how much of your paycheck), how much money you want to earn each year through investments, why you want to make that much money, and how you intend to make that much money. Then start implementing those goals with effective personal investment management. Be realistic! There’s nothing wrong with investing over a period of years to be able to afford a home or college tuition, but don’t expect to become a millionaire overnight.

blog comments powered by Disqus