Top 10 What Not to Do with Money Part2

Here’s Balance Top 6 - 10 in continuation to Top 5 What Not to Do with Money to keep more of your Money to keep you away from making financial mistakes.…

6. Don't manage your money without a proper plan

Ensure that you have a proper financial plan to manage your money and rigidly adhere to the same. It helps you to avoid unnecessary / impulse spending and safeguard your money. Do not invest money only on the basis of what others say. You must identify your priorities and set realistic goals.

When you are new to Investment, you must start saving with smaller amounts in
low-risk plans.

7. Don't invest all your savings in same investment avenue

Whatever your preferred investment avenue is, ensure that you don't invest all your money in the same place. Particularly don't invest all your money in one Stock or Mutual Fund. Diversification is a must to avoid risks. You must opt for a mix of various allocations such as cash, fixed deposit, equities, mutual funds, bonds, gold and property to be safe.

8. Don’t … borrow to pay for luxuries

Though we are getting credit cards / loans easy, we should not borrow to upgrade your lavish lifestyle, you will only sink yourself deeper into debt.

Make sure that you don’t ever borrow any more than you can afford to repay.  i.e., Don't borrow or use credit cards to just show-off to live a luxury life.

9. Don't panic if prices fall or markets crash

Volatility is the basic characteristic of markets i.e., Markets often tend to go through ups and downs, so we should not get worried about it. If you choose and keep a balanced portfolio, there is no need for a panic selling. If your stock is fundamentally strong and has great future , no need to panic at short term trouble. Your wait in the long run will get the best from your investment.

10. Don't lose track of your money

In order to not forget the investment what we have done, we should closely monitor which affects our money and its value with regards to our cash inflows-outflows, investment portfolio and market conditions frequently if not often.

It's your hard-earned money, so proactively involve yourself to make your money working for you.

Categories: Investment, Make Money, Money Basics, Money Management, Playing Safe with Money, Saving Money, Tutorials, What not to do with Money