Don't make these money mistakes!

Contributed by : Ms.Keerthi Hundekar,Bengaluru.

Courtesy : iDiva

Everyone keeps telling you how you invest your money and advices you against letting it sit in the bank. But that doesn't mean you blindly invest it.

Financial consultant Marzee Kerawala tells us the biggest mistake people make when investing is to believe the advertisement completely. "Don't base your decision on that alone. Investment options need to be studied before you put in your money," he says.

Here are five mistakes he says people commonly make:

1. Unaffordable investments "Don't bite off more than you can chew," says Kerawala. Whether it's the stock market, equity, mutual funds, insurance, gold or any other form of investment, make sure you have enough money to carry forward the investment. Insurance requires you to keep paying a premium for a long time.

2. No clear objective: Understand what you want the investment to give you. If you want to save on tax, look for specific investment options that offer this facility. "People often invest in shares looking for quick results, but it's not always possible. The market is so volatile, you may have to bear losses before you can make any money," says Kerawala.

3. Jumping in without research: If you don't understand your options, you are simply gambling with your money. Research not only the options available to you but also the market and company you want to put your money into. Regret is something you may be able to live with, but bankruptcy is not.

4. Unrealistic expectations Be realistic. "A short-term investment will never give you 60-70 per cent returns instantly," says Kerawala. Be prepared to lose money or get low returns. Pay attention not only to what the investment will give you but also the disadvantages you may have to face.

5. Impatience Don't get impatient to get your money back. "Investments take time to show results," says Jayshree Parikh, a financial consultant. This holds true for both short-term and long-term investments. Don't get greedy. Patience is the key to good investing. Investing your money wisely will not only insure your future, it will also benefit your family. So be wise and think twice.