Things to keep in mind while investing

Your journey towards financial freedom isn't complete without obstacles which you must learn to face and conquer. The sooner you learn to take action against them, more money you make.

Impulse Buying

Always buy when you see value not the price movements. Price movements are often due to market momentum and not for the value the stock presents.

Inflation

Inflation hurts people particularly those in fixed incomes like the elderly and those whose income isn't indexed to inflation. They lose a part of their purchasing powers because their cash flow remains constant while their cost of living increases. Employed individuals, despite receiving constant salary increments, are hurt because there is a time lag in compensation adjustments. By the time they receive higher nominal income, it has already been months since the prices of commodities went up.

Have a plan to buy assets which gain during inflation.

Procrastination

Procrastination simply refers to the habit of putting off doing something for a later time. Aside from the definition, it is also necessary to learn why we often choose to procrastinate. Is it simply because we are too lazy to act or is it something much deeper? More importantly, how do we get rid of this bad habit? What is the best way to really overcome procrastination?

Do today, what you can do tomorrow. Do now, what you can do today. This is the famous lesson that Ravana gave to Laxman in Ramayan while on the death bed.

Fear of Taking Risks

"Remember, life is a risk. To do or not to do something is an equal risk. And not doing something is the greatest risk of all. If you do it, you could lose . And if you don't do it, you will never know the benefits of having done it, or whether it will even work or not. So not risking is the greatest risk of all."

Wrong Beliefs About Money

If you think about it, money is simply defined as a tool that we use to acquire the things that we need or want. It is a non-living thing that is void of emotion or bias. Take a Rs 1000 note out of your purse right now and look at it. Would you agree with me if I say that you're simply holding a piece of paper? Can you shred it to pieces now ? No you would not.Yet we invest money into wrong places and throw our wealth into the sea.

Keep these things in mind and overcome them when taking investment decisions.