Ok, accept that fact that we all make mistakes and this is how we gain experience. Honestly, if you say that you have never made any mistake, you are simply not pushing yourself that hard. People lose everything in gambling just to realize that it is a bad place to invest their hard earned money. Similarly, you could have invested in the dot-com bubble that had left deep scars in your financial condition, or it could be that you have lost a significant amount of your savings by betting big on the share market. Well, this happens every day and the experience that you gathered from these big financial mistakes eventually make you a pro-investor. Below are three types of bad investments that you should stay away from if you do not wish to experience the great sinking feeling:
Though the idea was initially a great hit among people who love traveling a lot, its popularity is on the wane as soon as the recession hits the economy hard. The concept is definitely great as it lets you travel almost anywhere in the world without splurging your hard-earned money on some luxury hotel. But things have changed drastically after the recession enters. The quality of these timeshare properties takes a plunge and the maintenance fees increase out of blue and therefore, it has become an economically unviable option.
So, the time has come to get rid of this. But as the price of properties has taken a plunge, it is not an easy job by any mean. Even if you manage to sell the properties, it is virtually impossible to receive the same amount of money that you have invested in leaving aside the money you have invested in its maintenance.
All of us in our life have certainly come across deals that look like they are too good to be true. Even if you have little time to spare, you can browse Craigslist and there you will find deals which are so tempting and so crazy that normal people like you and me get enthralled and finally decided not to pass up the deal even when our common sense says is very much against the idea. So, next time when you find a deal that seems too good to be true, you have to keep your guards on. Do not invest in any deal that looks like a sham in this difficult time.
Majority of investors do not give two hoots to the fees they are paying each year for their investment in mutual fund. And you know the reason why you do not care much about the fees, yes you do not receive the invoice for it separately; it is pre-built into the mutual fund. So, when you are making a choice between a mutual fund that charges you 1.50% and one that charges you .75% a year, the difference between these two plans may appear insignificant but when you are investing a large chunk of your hard earned money, you have to care about this ‘small’ difference.