Financial Mistakes You Should Avoid in Low Income Times

We all have low times. Some of them are from financial sides. Some are from life, relationship, career etc. We all have to face them at some point of time.

When we make those mistakes the problem continues to get deeper in context of financial mistakes. Like you don't invest in right places. You don't invest enough. And slowly it all cascading goes down.

When you are thinking from that context, a lot of interesting things happen in your life and you have to get hold of it and not make some simple mistakes that could cost you something bad.

So this post is about avoiding the financial mistakes that could happen in the low income times.

Don't try to Time the Market

You may feel like you have some sort of the intuition on how the market works. And you try to time your investment accordingly. But that is not how the market works. Instead you have to rely on your efforts to make choices.

You make efforts to time the market, you end up going in the wrong direction. Instead you take the efforts to move ahead in consistent investment. That is one of the ways you can handle the financial choices.

Avoid Pessimistic Thinking in Investment

You may feel like investing into gold and the deposits. It may not earn you much but you do it because you think that would be a good safe investment. And market changes would not make the returns worth.

So in that context you would feel like avoiding the investment into equity. Because there is a loss associated in it. So in that case it is necessary to think with proper planning because that is only way to handle the financial windups.

Avoid Over Leverage in Market

Don't borrow. Don't get into the debt. Trying to increase burden on one of the debt or the equity component alone would be a bad thing for anyone. And that too applies in case of the market leverage.

Some people learn this pretty late in life. Like in 30s where the over of anything would be pretty much visible and also something a lot of people would realize is a bad mistake. So they learn this from their efforts.

Avoid being Emotional Thinking

I am guilty of thinking emotionally. I think of investing when the market is high and try to withdraw when market is down. I have learned to balance my efforts slowly these days and not do something like this.

I make sure to invest when the market is down and then make sure to withdraw when the market is in process of giving good returns. I think emotional thinking on that note is something we learn from experience and loss.

What do you think?

I feel a lot of things I have covered here so far. I hope to cover more as I write more exploring this phase of the financial life. What is your experience so far in this space? What do you think of handling the bad times financially?