26 September 2012

The Top Seven Money-Saving Mistakes - Part 3

Is it possible to make mistakes in saving money? Unfortunately yes, it is. The good news is we can learn from the mistakes of others and apply them to our own situations. This is Part Three in the Finance Tip of the Day series covering the seven money saving mistakes.

Money Saving Mistake No. 3: Jumping on the Investment Bandwagon

There are two important points to keep in mind regarding investment opportunities:
1. If you don't understand it, avoid it;
2. If it sounds too good to be true, it is.

As for No. 1, many investment fraudsters will be unclear in their explanation of the deal, causing confusion and sounding so technical that you figure they must know best. True investments are easy to understand; saving money should be simple.

As for No. 2, don't fall for the notion of "risk-free" investments with "guaranteed returns." Baloney - there is always risk and positive returns cannot be guaranteed!

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