We all know or have used the term investing either in the right content or otherwise. But let me just define it so that we are on the same page. Investing is the process of putting away our scarce resources in a strategic way to help us achieve specific objectives. When deciding on the investments that we need to work on then we must answer this questions.

​1 What and how much do I put away?

​2 Where do you put away?

​3 With who do you walk the investment journey with?

​4 What is the end goal?

​The above questions really help us in understanding our money goals and in most cases helps us as we identify our options.

​When investing then it is good to be aware of some of the potential pitfall and how to avoid them.

​1. The lack of investment knowledge: “An investment in knowledge pays the best interest.”. One can cannot benefit from that which they do not know and that is why as one starts the investment journey they should start by gathering knowledge. The beauty is with the internet on can read and understand various investment options and worst still there are many available trainings that one can enroll in.

​2. Following the crowd while investing: We are all unique and our needs vary, it is for this reason that one cannot take someone else’s investments and copy. It is however important that one surrounds themselves with people what are investment survey so that they can learn from them, but at the end one should aim to make their very own decisions.

​Rushing the process and taking too much risk: Many at times after we have learnt a new concept we become excited and we want to rush and implement what we have learnt. It is always good to pause for perspective start investing in less risky assets as you learn. You cant sign up for a marathon before you have even crawled. When some rushes the process the probability of making a wrong decision is high and that will derail the rest of investment journey

​Procrastination, starting late and not being constituent: “You may delay, but time will not.” Many at times we have very good reasons why we are not ready to start yet. But one thing is key, starting shows commitment to the process and creates discipline. When one starts early, there is always power in time and the portfolio benefits from the power of compounding.

​Not learning from previous mistakes: We shall get it wrong at times, but one thing we should never forget is the lesson we take from the mistake. If you invested in a stock and it did not perform well, going back to identify the process of the stock selection is important so that in future one is able to navigate the said challenge.

​Borrowing to Invest in Risky assets: Many at times we get excited about the potential returns from the venture that we are undertaking and forget to look at the risk side. It is important to note that the best way is to have some ground rules like do not borrow to start a business. Debt is good for business expansions once one has validated the concept and has gained traction.

​Backing the wrong ship: Investments is a people’s game. Having the right people as you walk the investment journey is important. It is difficult to walk the whole journey alone so getting the right advice is great and one should ensure they identify who they seek advice from on what assets and also who the investment partner on each is going to be.

​To grow wealth one must invest, the investments could either be passive like the capital markets invest i.e Shares, unit trusts, bonds etc or they investments could be active like running a business or investing peoples businesses. Irrespective of the path taken the mistakes cut across and it is good to be aware of this challenges and plan well in advance. “It is hard to be defensive toward a danger which you have never imagined existed.” ― John Christopher,

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