Investing is a critical part of today’s growth and as such, needs to be embraced as a core life practice. There are habits that deter one’s investment journey. These habits often go unnoticed. Sometimes it could be because of one’s background, lack of knowledge, misinformation, or environment. Let’s look at the potential deterrents to your investment journey.
- Retail credit cards
Retail credit cards expose people to unplanned debt. The interests accrued over time from these credit cards take away from amounts that you would have put into a good investment plan. Avoid credit cards if you don’t desperately need them. If you really need to have a credit card, remember to be responsible in your spending.
- Onetime events
Onetime events can cost a great deal of unallocated money if not well planned. Some people go to the extent of taking big loans for events such as weddings. If you cannot comfortably afford a weeding, adage shares that you need not to get in debt because of a single day. Rather, focus on building your marriage long term while planning and executing investment decisions that will eventually be pivotal to your growth.
- Brand names
It is a trait of a particular people to want to identify with trends and brands. One will go out of their way to have brands they can hardly sustain having or buy over time. Having luxury or popular brands that cost you more than you can afford is retrogressive. It is not shrewd. Having such brands does not necessarily mean one is rich, wealthy or successful. It is notable that people who are doing well for themselves hardly put on or run to brands.
- Students Loans
It is important to avoid unnecessary student loans. They derail one’s saving and investing momentum in his or her loan repayment years. You could actually talk with your employer to arrange to pay your for education on terms you are both agreeable to. If unemployed, there are scholarships and programs that seek to fund students of different levels. You have to look hard or consult wide enough to find them.
We mostly want nice things to ourselves, but to progress especially in matters investing, hard decisions ought to be made. This includes foregoing taking a huge mortgage to fund that big and exquisite mansion you have sworn won’t pass you by. You can opt for a smaller house with a decent mortgage and invest the extra amount you would have spent on a mortgage on a total market index fund. This will greatly cut down the average 30 years’ interest on your income spent repaying a huge mortgage.
If you invest at least $500 for a month over the same thirty years, you would be having a $1 million dollars. This amount would easily pay off your rational mortgage, buy you a house upgrade and even allow for more investments.
Look at the traits that hold you back from your investment journey and purpose to take action. Importantly, normalize investing, you do not need to be elite, rich or brilliant. Investing is a simple process that needs to be taken seriously.
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