1. Not knowing where your money goes or how you allocate it.

Whether you have a large amount of money coming in or enough to just cover your expenses, it is best to put a budget together and track your expenses and payments. Tracking your spending will assist to understand your money better and help you create good habits going forward to allocate money accordingly.

2. Thinking you never have enough money to invest

Investing isn’t just for the Rich. You can start investing on any budget if you can remain disciplined. Try and eliminate high interest and non-deductible debt such as credit card and personal loans and once this is done you can put a savings plan together and seek professional advice.

Don’t think about doing it later. If you have long-term goals that matter to you, it’s worth getting started now

3. Putting money into investments you don’t understand

People get frustrated at things they do not understand and this can be the case when getting into an investment which you didn’t fully comprehend when you first got into it. Always ensure you understand the risk and potential consequences of an Investment turning sour. Ensure there is always an exit strategy in place so you can pull your funds out if things go south.

4. Not doing the right research

There are many websites you can look at to research investment platforms and ensure you do your due diligence or if you are looking to invest with a professional, there are sites such as simplyaskit, Adviser Ratings or the ASIC website to check someone’s qualifications, experience, reviews and training. With the power of social media and Google, research is a click away.

5. Letting your emotions make your investment decision

Buying an investment property or opening a new share portfolio should be a decision without emotions attached to it. Don’t invest in 2 properties within 20km of you because you want to be able to drive past it. Ensure you are making the right decisions regarding diversification, investment protection and your investment philosophy aligns with your goals and objectives.

6. Consider tax

It is easy when your employer is taking out tax from your pay and you do not need to do anything except ensure your group certificates and payslips are correct. When you have an investment, it is up to you to declare the earnings, expenses, dividends etc. so the right tax can be applied. Ensure you see a tax professional to claim the maximum deduction as well as pay the appropriate amount of tax needed.

7. Not seeking Professional Advice

If you are a first-time Investor or a time poor professional, then making mistakes can be very costly if you don’t get it right at the start. Consider seeking Professional help if it seems overwhelming or attend as many seminars as you can to get a better understanding.

Remember, you are using your spare time to research this whereas a Professional spends most of their time researching markets and getting the most up to date information through their research facilities.

8. Relying on the media for information

Don’t panic or sell your portfolio based on short term fluctuations and headlines in the paper. The media always sell the negatives of what is happening in the market, what they don’t put in big bold letters is the next day or following week when the market recovers.

Investing in Shares and Property are long term investments and should be treated as such. History shows there are always up’s and down’s in the market, however over several years these markets generally tend to go up.

9. Trying to time the market

When you are trying to time the market, you are not just timing it to get in but you also need to pick when to sell out, this becomes very difficult and it is never an easy task to get it right. As mentioned, investing in shares and property are long term investments and you are better off making regular contributions through a ‘dollar cost averaging’ strategy which will enable you to take advantage of fluctuations in the market.

10. FOMO

This refers to the “Fear Of Missing Out” and getting into an investment you are not prepared for or do not have sufficient funds to service e.g. Ongoing debt related to an investment such as an Investment Property.

Just because everyone is getting into the Investment market, doesn’t mean you need to also. Everyone’s circumstances are different and if you are getting into something that you don’t understand, can’t sufficiently afford or paying over market value for…. STOP AND SPEAK WITH A PROFESSIONAL.

The information is general in nature and does not take into account your personal objectives, needs and financial circumstances. You should consider the appropriateness of the information, having regard to your personal objectives, needs and financial circumstances. This information is not to be construed as personal advice, and should not be relied upon as a substitute for professional advice.