Facts About Investing

Important Facts About Investing That People Often Forget

These days, learning about personal finance and investment is as easy as searching online.
However, this is a double-edged sword because while information has become more accessible, not everything you’ll read on the Internet will be true or helpful.
I’ve seen websites with misleading data, people telling false stories, and the worst of them all investment scams being shamelessly promoted online.
So how do you sort out the good from the bad? I believe it is by remembering these eight important facts about investing, and allowing them to guide you in every investing decision that you make

 Protection comes before investing.

All investments carry a level of risk. Most people try to avoid the risk by going for products with guaranteed returns, which more often are scams. Or they put their money in low-risk investments, and just accept the low returns. The best way to manage investment risks is to financially protect yourself when things go south. Those who invested in the stock market in the past two years know too well that parties don’t last forever.

Your best tools for protection are an emergency fund, health insurance

and for the worst case scenario that you die, life insurance.

You cannot just copy how other people invest.

Investing is a personal task. People invest for different reasons. My financial goals are not the same as yours, which means you cannot just invest where I invest.

The best investment for you depends not only on your goals, but also on your financial capabilities,

your Risk tolerance and your investment personality, among other things.

Never invest in something that you don’t understand.

There’s a lot of misinformation out there when it comes to personal finance most of them feeding on the fear or the greed of a person just to convince them to put their hard-earned money into their investment. I’ve seen too many people getting fooled into investing on something just after being presented with some made-up statistics and fake testimonials. It’s unbelievable how these sneaky marketing strategies still work. But you should be wiser now. Remember that ignorance is expensive, that’s why knowledge is and will always be the best investment. Learn more, keep learning learn for life and you’ll never be poor. 

In investing, time is more important than timing.

A lot of people like timing the market. They try to predict its behavior so they can buy low and sell high but not only is this time consuming, it’s also easily frustrating.

Interestingly, while financial analysts don’t always agree when the market will go up or down, most of them however will agree that the longer you are in the market, the better it is for your investment Again Id rather focus on making more money than spending most of my time speculating and being a fortune teller I put my money in stable investments with long-term growth outlook and let it grow over time it’s less stressful.