Most Common Investment Mistakes made by OFWs
A lot of people ask me how I became a good player in the investment industry, and I gave them all the same answer: I became a newbie.
Confusing? Sure, but that’s exactly what helped me make wise investment decisions. Being a beginner in this kind of business encouraged me to improve in many ways especially in skills and proper attitude. Despite having quite a lot of experiences, I still don’t consider myself as an investment genius – because I believe that there’s still a room for improvement. Plus, having a few investments doesn’t make me a pro. Well, at least not yet.
I suddenly remember a happening back when I was still in the Philippines. During that time, I was attending an organization conference and met a colleague. At the age of 50, he owned a total of seven condominiums. But guess what? He was troubled because he doesn’t get as much profit as he had estimated in the first place. So, I gave him a piece of advice and told him what exactly he did wrong. Long story short, he was able to salvage what was remaining and is now earning a lot more than ever.
Now, I’m sure you don’t want to make the same mistakes – which is why I will share with you the 7 Most Common Investment Mistakes made by OFWs.
- Skipping the investigation part.
A lot of OFWs usually experience having a friend or a relative insisting that they join a specific investment, and sadly, some Filipinos do rely purely on hearsay. Some of them get encouraged easily whenever someone they know claims that a particular investment is profitable. But the thing is, not all they say is true.
Before making any financial decisions, you should always do your research and find out what you can about this particular investment.
- Being an investment addict.
For a beginner, this is just a no-no. You need to focus on your investment to fully understand how it works and how it can make a profit for you. It is advisable that you do it one at a time, and get a few more investments later on once you get the hang of it.
- Putting your money in one basket.
You should learn to be diversified. Sure, you need to save money, but don’t you want it to grow as well? Then, you should have some equities, tangible assets, properties, emergency fund and retirement fund.
- Failing to create a good connection.
In life, we are given millions of chances to establish a harmonious relationship with a lot of people. If you know someone who’s good at handling money, why not befriend him/her and ask for some tips that you can use to improve your skills?
Not only that you can get free tips, but you can also have an instant consultant if you are about to make a big financial decision.
- Not setting a financial goal.
Every OFW know that their jobs are only good for two to three years unless their employer has decided to renew their contracts. Not to mention that every country has its own issue, so it is good to be prepared beforehand.
Therefore, the moment you start working abroad, you should create a financial goal that can help you survive in the long run, just in case your contract isn’t renewed.
- Limitless spending on investment.
Seeing your hard-earned money grow through your investment is one of the most satisfying feelings in the world. I can’t disagree with that. But we need to control ourselves with overspending on our investment especially when we have just begun.
Since we still don’t know the world of investment like the back of our hands, it is better if we will be careful with the amount we use. We can start by putting in a small amount and add more as time goes by, as a safer option.
Investment is not a one-way path or a single jump. If you’ve made up your mind to enter the investment industry, you should be cautious and prepared at the same time.
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