When it comes to financial planning, many Perth residents have a “can do” attitude. It seems like a lot of people try to go the “DIY route” when it comes to making investments. While this is admirable, investing is complicated and competitive. Amateur investors often find themselves competing against professional investors who invest for a living. It is easy to guess who usually wins and who usually loses in this scenario.
Here are five common mistakes that DIY investors make.
Failure to Calibrate Goals
The two most common variations of this are too many goals and unrealistic goals. The most common is expecting to much of a return in too short a time with too little to invest. Often, people set a budget that leaves them a miserable current lifestyle. Eventually, they can become bitter towards their budget and derail their own investment plans.
Failure to Invest Sufficient Time and Effort
It takes time and effort to create a budget and an investment plan, with or without a professional investment planner. This could also be called, “Failure to treat investment like a business.”