During the coronavirus pandemic, thousands of Australians have found time to start taking an interest in investing.

So, I thought I’d run you through the biggest investment mistakes people make in the hope you can avoid them…

TIME

Often one of the biggest mistakes is not starting early enough. Most people underestimate how much they need to invest to achieve their goals in life and it’s made all the more difficult by not getting started early in life. If you’re thinking you may have left you’re run too late, don’t think about the past, just get cracking now!

FEES

Once people do make the decision to invest, they often pay too much in fees unnecessarily. It’s tricky because they don’t teach these basics at school and so the investment world has been able to create the perception that fancier, higher-fee products will yield better results. It’s almost always the opposite.

EMOTIONS

Another common mistake is just not sticking to a plan. When people let their emotions guide them, greed and fear often lead to people buying and selling at the wrong times and deviating from what they originally planned to do.

DIVERSIFICATION

In terms of what investments to buy, it’s important to keep an open mind and be willing to learn. We all know the saying “don’t put all your eggs in one basket”, yet many people limit their investments to things they think they understand or things that make them feel comfortable. In some ways, when it comes to investing, it’s important to get out of your comfort zone.

THE BIG ONE

There is one mistake that is the biggest of all… not investing!

Don’t let analysis paralysis stop you from taking the first step. You just have to get started.

Start small, invest regularly, keep costs as low as possible, diversify and stick to the plan. Do these things and you will create wealth… it’s not magic, it’s creating a plan and putting it into action.

If you would like help with a plan for investing and value financial advice being independent, let’s have a chat.

Cheers,

Daniel