Silly mistakes are what the majority of times investors tend to do in their investment journey.

In this article, I am exploring some of those mistakes to be avoided.

Let’s find the silly mistakes in your investment journey…

1st mistake Doing investment with a loan…

Many investors tend to do investment by taking a loan.

In addition, investments like buying a 2nd house, land, and even buying mutual funds units with loans.

Moreover, doing business with a loan makes sense.

But buying any kind of asset with a loan doesn’t make sense.

We cannot predict the rate of return that you are going to get from the assets you bought.

If you get a rate of return over and above your interest rate on a loan only, you will get a profit.

2nd. Mistake Spending too much for children’s higher education…

Many parents tend to enrol their children in colleges and universities, which are very costly in nature.

But the real fact is that costly college doesn’t mean a bright future for your children.

If you ask me, instead of spending too much money for children for higher education, if you develop some business skills for your children, the chances of a bright future for them will be high.

and its a myth only education is the way for a bright future.

3rd. Mistake  Rental income is the best way for retirement planning…

Many believe that rental income will protect them in retirement.

But do remember, in order to acquire a property for rent, many of us have to rely on loans, but as I said in mistake 1. not worth it.

In addition, property is not yours until it is repaid.

Moreover, the structure in the property will have depreciation every year, and the cost of repairs every year is something we cannot predict.

Finally, there are better ways to invest and accumulate inflation-adjusted returns for your investments.

Mistake 4. Thinking income is permanant in life…

This is the biggest mistake many commit.

In addition, we do not know how our health will be in the future.

And how you can improve your skills, how your mind will stay strong long, etc., are not known.

Many people ignore this and spend completely what they earn, and suddenly if the income gets stopped, there is no clue for them.

Mistake 5. Investing in assets that are suitable for your financial situation.

Many investors will not invest because of their financial situation and risk profile.

Example: Investors tend to invest bank FDs for 10 years also.

But 10 years is long term, and if the same is invested in an equity mutual fund, you will get a much better rate of return than bank FD.

Moreover, as investors do not take different risks involved while doing investments, they choose investments randomly.

Which is dangerous.

Mistake 6. Too much charity…

I have seen many people do charity or spend on God’s name to the extent that they cannot afford.

For example, Christians give tithes, up to 10% of their income, as tithes to pastors, which is not at all desirable for their wealth creation.

Here, people think, tithe is also an investment in reaching God.

But that is not true at all.

Read the article, Why real estate is a bad investment.

also read about different types of loans in India.

and read about, can you predict nifty levels for the future?