Reasons why you should not invest...

Straight to the point...

You should not invest if you are in this situation:

IN DEBT

1) You are in debt. If you have a recurring debt which require you to repay the loan, you should focus on completing the payment (partial/full) before you decide to invest. Debt in this case refers to bad debts such as credit card loans, loan sharks payment and personal loans from friends or families. Unpaid loans can lead to complication. It just roll the debt snowball bigger and bigger.

NOT EDUCATING YOURSELF

2) You have no head or tail about investing. You may have probably heard of someone making good returns buying stocks and decided to do the same but the results can widely differ. There are many factors resulting why two investors buying the same stock can have different returns. Not understanding when to enter a trade can lead to losses. When it comes to investing for beginners, I would like to recommend all to consider the CARROT rule: C - Capital, A - Assets, R - Risks, R - Risk Appetite, O - Objectives and T - Time. Rule number 1 in investing, never follow blindly. Always know what you are buying into.

"FOR FUN" TRY TRY ATTITUDE

3) If you have the means to invest. Never never invest with a "try try for fun" attitude. Many new investors begin investing with a common mindset: "Aiyah! it is okay to lose this money, I try try only". While it is right to invest what you can afford to lose, nobody likes to lose if they can win. The objective of investing is to grow your capital and profit from gains. Investing is a serious business, we are talking about money here! Investing with a try try attitude will result in ill discipline and go against the principle of investing. However, if fun is what you are looking for, be sure to allocate a pre-determine sum and walk away regardless of the results.

IMPATIENT

4) "I want to get rich!" Surely you have heard of many success stories of people becoming millionaires and billionaires and you think to yourself, if others can do it why not me? The truth is most successful investors take their time to craft their investing skills. Hoping to get rich overnight through investing is as good as hoping to win the lottery. Patience is a virtue and it is an important factor when it comes to investing. Investing for the long term they say... buy and go away. Technically, it is true as passive investing is always right for the patient ones.

EVERYTHING ALSO WANT TO BUY

5) When I first funded my account, it was similar to the feeling of going on a shopping spree. Like a kid looking over a display wanting to buy everything that are behind the glass windows. There are thousands and thousands of stock to choose from but with limited funds. While every businesses you explore seem to have a greater growth potential than another, it is imperative to plan your choice. Once the decision is made, stick to the fundamentals and stayed convicted. You cannot buy everything in the world.

About The Contributor

Ben is not financially trained. He is not a certified financial planner and he does not sell any insurance or investment plans. He is not financially motivated by any entities to produce this blog. He just want his friends to know more about money management and not have anyone fall between the social cracks. Nope, he is not a millionaire though he aims to be financially free before 50 years old.

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