Investing Mistakes To Avoid And Why You Should Start Investing Now!

As the 21st century approaches, new technologies and ways of thinking are making it easier to harness resources and opportunities to create value for others. The impact of technology is so profound that many of the questions which young people need to answer for their own development are about harnessing the power of new forms of communication to increase our social and economic impact.

Today’s generation is the most indebted and the most inexperienced investors in history. They also struggle with traditional methods of saving and investing. Some people are very risk-averse and won't spend any money at all, and some are very aggressive and spend like crazy.

A lot of the debt that millennials are taking on is what's called "involuntary debt," where they owe the money, or someone lent them the money to buy something. So they're paying interest on something they don't own. So it's a little bit of a self-inflicted wound. And the other thing that can happen is that you can end up spending more on interest than you originally did on the thing you didn't want to buy in the first place.

Millennials tend to be living longer than previous generations. So if they're able to save a little bit more, they're going to have more money at the end of the day. While investors have access to a wide variety of funds to choose from, the devil is in the details of the funds. Often it's not the products that are bad but the investment strategies of the funds, the fees, and the nature of the underlying investments.

Investing is all about building a solid long-term portfolio of investments, and if you're following the sound investment strategy, you're on the right path. Never pretend that you are working with a blank slate. There is no such thing as a blank slate in life. Every human has a set of needs, beliefs, preferences, and expectations. In life, we do not have the luxury of making decisions based on gut feeling. We need to step back and look at the big picture, asking questions like, "What do I need to protect my assets?" "Do I need to invest for the long-term or for a short-term gain?"

That being said, there is a point where you can still act on gut instinct.

Many ignore the balance between their income and expenses. Consider the five major categories of your income and expenses:

• Dividends
• Interest
• Social Security
• Provisions for debt payment
• Taxes

After you are done categorizing your income and expenses, do a little math. Dividends and interest rates don't typically fluctuate that much. However, taxes are an annual variable and really shouldn't be ignored. Income from investments will be the big winner and the kicker to any plans you decide to implement.

Look at it this way: Will you be enjoying a carefree lifestyle or will you be required to work? By planning for a comfortable retirement, you are also preparing for a lifestyle that you always dreamt of. The decision to retire is a big one. If you are afraid you will run out of money, why not start saving now?

When planning for retirement, think about the present and the future. Consider how your assets will be used when you are retired.

Let us assume you know everything about every investment or asset. There are a lot of options out there, and in the wrong hands, your investment could take a big hit. Some investments can be very volatile and very difficult to manage. It is your responsibility to understand the risks of your assets and to know the ins and outs of each investment. To be successful, you need to balance your risks and focus on the long-term picture.