Money is often seen as one of the most awkward, and vulgar, subjects in the world. But while people keep their financial problems, salaries, and even triumphs a secret, it’s no secret that everyone wants to have enough. Or even more than enough.
Money can’t buy you happiness but it can buy security and stability, both of which are essential to happiness.
Unfortunately, however, with much of the western world living on minimum wage and struggling to keep up with the high cost of living, it doesn’t seem like there will be a time when going to work will ever be enough to provide the much-needed financial security.
Due to this, many people are turning to avenues in order to be able to cover their bills, groceries, rent, and other living expenses.
These avenues include second jobs, selling second-hand goods, selling homemade gifts, building a social media presence, or investing.
This article is going to focus on investing and we’ll be offering advice on 6 mistakes you should avoid when investing.
However, this is NOT a financial advice piece, any money you put into investments is entirely at your own risk and we hold no responsibility for your investments.
Now that the important part is out of the way, let’s get on with the first mistake to avoid.
Jump to section:
- Don’t Only Invest in Intangible Assets
- Don’t Only Invest in Public Markets
- Expand Beyond the U.S. and the EU
- Don’t Forget to Save
- Don’t Forget to Rebalance Your Personal Portfolio
- Don’t Try to Outdo Other Investors
1. Don’t Only Invest in Intangible Assets
If you were to ask people how they thought the ultra-rich got their money, most people would say (aside from trust funds) that it was through investing in stocks and bonds.
However, while the wealthy do earn money through these types of investments, oftentimes they earn far more through tangible assets.
Assets such as properties, gold, commercial land, and artwork. You can make millions on the stock market but you can make billions with tangible assets.
Tangible assets are far less susceptible to market swings and crashes and have far higher yields over the long term.
Physical assets, however, tend to scare off smaller investors due to the lack of liquidity and higher costs that come along with them. But if you’re willing to forego the liquidity and can see the long-term goal, tangible assets are worth looking at.
2. Don’t Only Invest in Public Markets
Public markets or common markets are a normal and great way of investing. However, you shouldn’t forget about all that can be gained in private markets too.
This means investing in start-ups, and private businesses, becoming an angel investor, or in endowments at some of the country’s top universities like Yale and Stanford.
3. Expand Beyond the U.S. and the EU
While it’s true that areas like the EU and the USA can provide more investment security, that doesn’t mean you can find the same level of security in other parts of the world too.
To expand your investments, you should look beyond these borders and find emerging markets. Countries like Singapore, Chile, and Indonesia also offer investment opportunities. However, when making new investments, especially in foreign countries or on foreign markets, you should always do a plethora of research first.
4. Don’t Forget to Save
Wise investments should go alongside wise savings plans. The ultra-rich have savings just like other people and it is an area you shouldn’t neglect. Increasing cash flow and reducing cash outflow is a strategy worth starting.
5. Don’t Forget to Rebalance Your Personal Portfolio
A balanced portfolio is one of the key parts of sensible and profitable investing. If your portfolio doesn't stay diverse then you can lose all of your money before you can fix it.
By consistently rebalancing your portfolio you can ensure that it remains diverse and less risk averse.
However, sometimes people get so caught up in the immediate financial goals that they neglect to rebalance, their portfolios skew in one direction and they risk losing large amounts of money.
You’ll need to have a healthy mix of cash, stock, bonds, and if possible, tangible assets to keep your portfolio balanced.
If you are in charge of your own portfolio, run a rebalance at least once a week, or more often if you have large amounts of money invested.
6. Don’t Try to Outdo Other Investors
Just because one of your peers was certain about a particular investment, that doesn’t make it a good idea. Have a full understanding of the situation before you commit money.
Additionally, don’t try and match or outdo the amounts of those around you who are investing. If you look at it like a competition, then you’ll lose faster than anyone.
Invest what you can afford to invest, best sensible in the parameters you set, and know that in investing, sometimes less is more.
When you have long-term goals, you don’t need to worry about putting down all your savings in one go. You’re not trying to make a million in a week.
As long as you can avoid the pressure that comes with investing and ensure that you are more concerned about which investments you’re choosing rather than how much money everyone else is putting down, you’ll have far greater success.
Investing In Bitcoin
One popular investment is cryptocurrency. Especially Bitcoin, given its reputation and relatively long history. Like all investments, Bitcoin comes with risks but it also can come with rewards.
However, since paying for Bitcoin is out of a lot of people’s price range, Mining Syndicate has come up with a solution.
At Mining Syndicate, we enable anyone to invest in Bitcoin, even the “little guy”. Our miner hosting service and split share option are the perfect ways for people to get invested in Bitcoin without a huge upfront cost.
Join Mining Syndicate from Anywhere in the World!
If you would like any more information about starting or expanding your Bitcoin horizon; reach out to us at Mining Syndicate. Our mission is simple: Strengthen the Bitcoin network by enabling small-scale miners to affordably purchase and reliably host miners.
As a small miner, Chris became frustrated by the lack of hosting options available for miners with under 100 units. As luck would have it, he found a 2.5MW mining facility for sale right down the road, and thus, Mining Syndicate was born. Facilities #2 and #3 are currently launching and #4 and #5 are in the works.
Why is Mining Syndicate so successful? Because we have a team of people who are just like you, eager to be a part of the future of mining. If you would like more information about how you can be a part of Mining Syndicate, how our facility works, or the products we sell, you can reach out to us here.
We are here for you through every step of your Bitcoin journey!