This is a continuation of our money mistakes. I did not know how best to title it to pique your interest and so I decided to title it the way I have. Forgive me, if I dragged you into this. Let’s take a look at the mistakes.
“If you would know the value of money, go and try to borrow some” — Benjamin Franklin.
- Rating People’s Gift — You don’t know what people went through to give you whatsoever they did give to you. Sometimes it is the last money on them. Yes, they may earn kazillions but always remember that the more the money the more mouths that feed on it. When people give you things, it is not because they do not have anything to do with it. It is because they thought of you and that is what they can give as at that point in time.
- Investing with Guaranteed Returns — Run. Nobody can give you guaranteed returns on anything. I know treasury bills and bonds from sovereign nations are very secured but there is 0.005% that they can default. Most people that promise guaranteed returns are running a Ponzi Scheme. With investments, you cannot guarantee anything. Many things happen in the life of an investment.
- The Next Big Thing Syndrome — It is good to go out and check out the next big thing (forward thinking) but sometimes the great thing you are looking for is already with you. How about doubling down on the investment you already have? Check your portfolio. Too much of a good thing is not bad. What do you think?
- Not Knowing What You Are Investing In — You must have a good idea of what you are doing with your money. If you do not, it will “fly” away. “Never invest in any idea you can’t illustrate with a crayon” — Peter Lynch, the legendary investor advised. Let me implant a quote from a website I got: “I think I take from this a slightly different meaning than intended by Mr. Lynch. Rather than investing only in simple, easy-to-understand businesses, I think one ought to be able to paint a picture of both the importance of the business and why it will succeed. If you don’t have a good understanding of why the company will thrive, you likely will not recognize signs that it may begin to fail”. Behind every stock is a company. Find out what it’s doing.
- Spend Before Saving — If you take this route, you will never have anything to save. So, if saving is important to you (it should be), then you should have a plan to take out what you have planned to save before proceeding to spend.
- Don’t Be Stuck in The Past — Those who are held back by their initial investment mistakes are likely not to invest again. Most of them invested without knowing what they are doing but now they cloak their mistake with the fact that it was a bad business in the first place. Not always. Let your mistakes be points of reflection. Ask yourself “what went wrong?” Learn from the process. Miriam Makeba once said that those who are stuck in the past are bound to drown.
- Spending Time with People Like You — If you want to get to the next level in life, you need to meet the people on that level. More like, meet people at the level you aspire to be. Spending all your time with “your” people causes “inbreeding” (Google the meaning- seriously). As you know, children bred from inbreeding are naturally and genetically weak. You need to leave your “zone” and go to where fellas have stronger genes, in order to make it to the next level. This YouTube video will crystallize what I am trying to say: How door knocking got this kid a job in the City – BBC Stories
Spend time with people that are already at the place you hope to be. This will take you there faster or at the least, point you in the right direction.