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10 Investing Mistakes Most People Make

10 Investing Mistakes Most People Make

Whether you are investing to build a retirement fund, or to put your excess cash to work, you should always be wary of the following investment mistakes. These can ensnare an experienced investor as easily as they can entrap a rookie. Here are 10 investing mistakes to watch out for:

1. Investing while in debt.

The phrase “cheap debt” is thrown around by the financial experts routinely. However, it does not apply to credit cards. To invest money when one is living off credit cards is a big no-no. One should repay credit card debt as soon as possible.

Similarly, putting money aside for investment while having a student loan or a house mortgage might seem like a good idea, as the expected rate of return on the investment is higher than the expected cost of debt. However, the comparison is incorrect. Today’s cost of debt is being compared to tomorrow’s rate of return. We are coming out of the zero interest rate period, and it is not unreasonable to believe that debt will become expensive again over time. One should prioritize offloading all debt before one starts setting aside money for investments.

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2. Investing with a very high cost of transaction.

When one buys or sells investments, one invariably coughs up fees and charges. In some cases, the cost of a transaction is quite high. When investing in a house, for example, be sure that you do not liquefy the investment within five to seven years. If you sell the house within that time frame, then the transaction costs will substantially eat into your rate of return.

Another avenue in which the costs are very high is investment in physical gold. Apart from the transactional costs of gold, one should account for the charges applicable for its safe and secure storage. It is more advisable to invest in gold ETFs instead of physical gold.

3. Investing with a single-minded focus on fund fees.

The internet is full of advice on choosing low-cost funds instead of paying a premium on funds managed by rock-star fund managers. Undoubtedly, a lot of advice is sound, but some investors make decisions purely based on fund fees while being ignorant to other parameters like the rate of returns they deliver, or the amount of asset diversification they have. In some cases fund houses use “cheap funds” as a marketing ploy. In Britain, HSBC’s Equity Tracker Fund has an expense ratio of 0.27% a year, while Virgin’s equivalent equity fund charges a full percentage point extra. However, both the funds are being heralded as low-cost funds by their respective fund houses.

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4. Investing in hot tips.

Hot tips and fads rule the market, and just about everyone is an expert on the Next Big Thing. However, such advice should be taken with a grain of salt. Investment is a process, and due research is a necessary aspect of this process. After all, if you are not willing to put in the time and effort necessary when making an investment, you can’t expect your investment to reward you with your returns.

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    5. Investing decisions based on market conditions.

    Market conditions cannot dictate one’s investment strategy. The inherent volatility in the market is frustrating, especially when investment portfolios underperform the benchmark index. Doubts start creeping into one’s investment strategy. However, investment strategies cannot change with the market cycles. It is imperative to have faith in one’s strategy, provided it is based on sound characteristics. A good strategy with a long-term outlook may underperform for a period of several months based on the market conditions, but in the long run it will reap the desired rewards.

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    6. Investing while overpaying for investment services and financial planners.

    There are multiple avenues for investing one’s hard-earned money. To understand all the options out there you may need assistance, and that is where financial advisers come to our aid. However, when a financial adviser builds a portfolio of low-cost index ETFs, then one wonders if there is any value to the adviser. The cost advantage of investing in a cheap ETF is consumed by the fees of the adviser. Some advisers even receive hefty commissions for recommending investment products. If that is the case then the financial adviser’s motives will not match your interests. One should be wary of such advisers.

    7. Investing on margin.

    No matter how enticing an opportunity, one shouldn’t buy stocks or investments on margin. Margin trading has its benefits, but those should be left to the professionals. If the investment is leveraged, then one bad trade can wipe out a significant chunk of one’s investments and set one back significantly. In addition, when investing in property that is not for personal use but for investment, using housing loans is not a good strategy. The recent housing crisis points to the flaws of such leveraged investing. Bottom line: always invest with money that you have and can afford to lose without any adverse impact to your financial health.

    8. Investing with an unrealistic expectation of return.

    Investing with an unrealistic expectation of return, and without accounting for the compounding magic of time, is a strategy that is doomed to fail. In pursuit of manifold returns, people dabble in the penny stock market and end up burning their hard-earned money. In the end, if an investment idea sounds too good to be true, then it probably is.

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    9. Investing out of fear and greed.

    Emotions are attached to one’s investment decisions. We all feel joy when an idea works out to our benefit, and all feel despair when a decision goes bad. However, the emotions of greed and fear should not override one’s sense of logic and reason. Greed and failure prevent one from making smart decisions; they make one follow the herd mentality instead.

    10. Investing without a plan.

    Investing is a boring process. To see meaningful returns, one needs time to do its magic. Patience is key. An investment plan, revolving around meaningful financial goals, helps when things get rough. It provides motivation to save money when the same money could easily be spent on mundane activities. It provides the focus and determination required to pursue a life of financial independence.

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    Last Updated on April 19, 2021

    40 Healthy And Really Delicious Meals You Can Make Under $5

    40 Healthy And Really Delicious Meals You Can Make Under $5

    Ever had those moments where you really wanted to eat something delicious and healthy but didn’t have the financials means to do so? Whether you’re a student or parent, this compilation of 40 great, healthy, and inexpensive recipes will make every night special and help you get fit! No more meals where you have to force the food down! It’s time to make that budget your best friend and turn it into great recipes. Enjoy!

    1. Fish Tacos in Crunchy Shells ($3.56 per serving)

    Is there a better way to end the day than a Fish Taco dinner filled with protein and nutrients and is easy on the wallet? This recipe calls for a boys’ or girls’ night in front of a good movie or game.

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      2. Mini-Meatball Noodle Soup ($3.43 per serving)

      We’ve heard of the delicious spaghetti and meatballs recipes, but imagine having that same meatball goodness in a soup? It’s like Christmas in a bowl. Healthy, warm, and only $3.43 per serving.

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        3. Spaghetti and (Vegan) Meatballs ($2.13 per serving)

        Now it’s time to look at the traditional spaghetti and meatballs recipe, but with a little twist: vegan meatballs. This way, you can enjoy the Italian tradition without adding on the extra calories. I’m sold!

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          4. Kabocha Squash and Lentils ($3.12 per serving)

          Absolutely delicious way to end the day with a Kabocha Squash and lentils dinner. The beauty of this recipe is that you can actually make many other things from the mixture, from dips to full-on meals. All under $5 per serving.

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            5. Baked Coconut Lentils ($0.91 per serving)

            Coconuts are always a good idea, but it doesn’t have to be eaten only for dessert or breakfast. With this great recipe, you can now eat a lunch or dinner filled proteins and a coconut twist. Yum!

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              6. Easy Marinated Roasted Chicken ($3.40 per serving)

              We love chicken and at less than $5 per serving, we are in heaven with this recipe. Add some vegetables and rice on the side and you’ve got yourself a full meal!

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                7. Organic Greens and Goat Cheese Gratin ($2.36 per serving)

                This is absolutely divine. You get in your healthy greens and your fat macros with this great recipe. Takes only a few minutes to make and it’s easy on the wallet. Bon Appetite!

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                  8. Beef Pot Roast ($3.22 per serving)

                  One word: perfect. This meal will warm your insides and fill you up with the high protein content.

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                    9. Fajita-Style Quesadillas ($0.43 per serving)

                    If you want to eat Mexican tonight but want to stay in your budget, this Quesadilla recipe is your best friend. It’s tasty and filled with healthy ingredients for less than a dollar per serving.

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                      10. Fish Tostadas with Chili Lime Cream ($2.82 per serving)

                      Another great lunch idea for the busy days ahead. Prep this in the morning or the night before and you’ve got yourself a healthy and cheap lunch meal!

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                        11. Beef and Black Bean Chili ($1.36 per serving)

                        Might not look like much, but this amazing chili is actually extremely healthy for you. The protein from the beef and the carbs from the black beans will fill you up in no time, and keep you full for a long period of time. Delicious and warm, just right for the winter!

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                          12. Crispy Fish and Peppers ($2.18 per serving)

                          Amazing recipe for anyone looking to change up their meals while keeping their macros in check and not going overboard on spending. Satisfies your crunch tooth (see what I did there?) and gives you all the protein you need to stay full and lean.

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                            13. Vegetarian Gumbo ($1.50 per serving)

                            You have the perfect macro mix here with the carbs, fats, and proteins. At less than $5 per serving, you’ve got yourself a meal that will last for the whole week!

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                              14. Mexican White Bean Soup ($0.99 per serving)

                              With the cold weather creeping in, it’s not a surprise that soups are coming back in style. This great Mexican White Bean Soup dish will keep you warm for winter without making a hole in your pocket.

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                                15. Black Beans with Mango & Cilantro ($0.38 per serving)

                                Mangoes make every dish a little bit sweeter, which is why we absolutely love this recipe. A normal rice and bean dish might be a little meh, but add the sugary taste of mangoes and you’ve got yourself a party!

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                                  16. Bean Burritos ($0.71 per serving)

                                  If you’re having people over tonight and don’t want to spend too much time or money on food, this dish is a great option! You can even cut up the burritos into pieces and make finger foods while everyone’s watching the game or gossiping.

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                                    17. Five-Spice Beef Kabobs ($2.43 per serving)

                                    The spices in this recipes add a delicious twist to the beef kabobs, which is definitely worth trying!

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                                      18. Cornmeal Crusted Pork ($1.92 per serving)

                                      If you like the fried crunch but want to opt for a healthier alternative, cornmeal is your man. This healthy recipe will satisfy all your fried desires without making you pop open your pant’s button.

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                                        19. Chicken, Tomato & Cucumber Dinner Salad ($2.57 per serving)

                                        Easy to do, extremely healthy, and super delicious. A must-try!

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                                          20. Lentil Soup with Beef and Red Pepper ($1.90 per serving)

                                          I can’t believe how cheap this meal is, especially for all the nutrients it contains. You can make a big pot on Sunday night and divide it into small portions to last you a whole week.

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                                            21. Smoky Mushroom Stroganoff ($1.90 per serving)

                                            Craving pasta but not sure what to top it off with? How about smoky mushrooms with a twist?

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                                              22. White Bean Tuna Salad ($1.36 per serving)

                                              You can add this White Bean Tuna Salad in your sandwich or just eat it as-is for a quick lunch on a busy day.

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                                                23. Sausage Eggwiches ($0.80 per serving)

                                                Who says you have to eat fast food to get an eggwich? This delicious recipe will give you an amazingly healthy eggwich for less than a dollar per portion. Can you say Breakfast?

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                                                Sausage-Eggwiches

                                                  24. Baja-Cali Black Bean Salad ($1.17 per serving)

                                                  Great snack to add to a movie-night with friends. You don’t have to use chemically-processed salsas anymore, you can now use this homemade salad for your chip dips.

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                                                    25. Gnocchi, Sweet Corn & Arugula in Cream Sauce ($2.24 per serving)

                                                    Italians always knew how to make carbs look good! This delicious Gnocchi recipe will give your lunch a whole new meaning. Easy to make and only $2.24 per serving.

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                                                      26. Vegetable Lasagna ($1.73 per serving)

                                                      If you were looking for a healthy lasagna, you’ve just found it. At under $5 per serving, you can fill yourself up right away without putting on the extra calories.

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                                                        27. Fajita-Ranch Chicken Wraps ($2.05 per serving)

                                                        Don’t know what to make for lunch this week? How about delicious chicken wraps with a healthy ranch? This recipe will make all your lunches, even the quick ones, healthy and colorful.

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                                                          28. Quinoa with Pan Roasted Brussels Sprouts ($1.24 per serving)

                                                          A dish that has quinoa and brussel sprouts can’t be unhealthy, it just can’t, which is why this dish is one to keep in the books. Easy to make, healthy, and will keep you full for a long period of time.

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                                                            29. Butternut Squash Chili ($1.04 per serving)

                                                            You don’t need meat to make chili now that you have this recipe! It’s 100% healthy, filling, and smells absolutely delicious.

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                                                              30. Fast Shrimp Bisque ($2.03 per serving)

                                                              Seafood doesn’t have to be expensive if you know how to do it right, and this fast shrimp bisque is a great recipe to try if you’re in the mood for some seafood!

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                                                                31. Chicken-Noodle Casserole ($0.98 per serving)

                                                                Looks divine doesn’t it? This super easy to make dish will satisfy all your taste buds without burning a hole in your wallet or adding a few extra numbers on the scale.

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                                                                  32. Burrito Cups ($1.18 per serving)

                                                                  Entertaining someone tonight and don’t know what to make as appetizers? These burrito cups are a great alternative to chips or other greasy finger foods. All you need to enjoy it is a spoon and a cup.

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                                                                    33. Lemon-Dill Shrimp & Pasta ($2.45 per serving)

                                                                    Another impressive shrimp recipe under $5 per serving. The lemon-dill twist adds a great taste to the dish.

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                                                                      34. Potato Frittata ($0.87 per serving)

                                                                      If you want to eat potatoes for breakfast but still want it to be healthy, this is the recipe for you. At under a dollar per serving, this potato frittata will make you see potatoes in a whole new light.

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                                                                        35. Grilled Pork and Pineapple ($2.67 per serving)

                                                                        Meat and fruits? Oh, yes. The juiciness of the pork mixed with the liquid sugar in the pineapple will make you wish you knew about it sooner.

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                                                                          36. Greek Honey-Lemon Pork Chops ($2.15 per serving)

                                                                          Another splendid recipe mixing sweet and salty for a healthy meal. Easy to make and absolutely mouthwatering.

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                                                                            37. Jamaican Pork Stir-Fry ($2 per serving)

                                                                            You can add this healthy stir-fry to any dish as a side or amply enjoy it as-is for lunch or dinner. You can even make a wrap sandwich out of it if you’re in a rush to eat.

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                                                                              38. Herbed Salmon ($2.49 per serving)

                                                                              Salmon contains a healthy dose of fats that will boost your metabolism, lower inflammation, and make you happier. At under $5 per serving, need I say more?

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                                                                                39. Five-Spice Pork Kabobs ($1.96 per serving)

                                                                                Exquisite recipe under $5 per serving that will most definitely awe everyone at your dinner party.

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                                                                                  40. Stuffed Sweet Potatoes with Mango-Black Bean Salsa ($1.24 per serving)

                                                                                  You don’t have to eat sweet potatoes alone anymore with this flavorful recipe.

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                                                                                    Featured photo credit: Featured Photo Credit: 5 Dollar Dinners via 5dollardinners.com

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