Watch Out for these Dangerous Investing Mistakes

You will probably make some investing mistakes as time goes by, however, there are certain big mistakes you need to avoid if you want to be a successful investor. For example, the biggest investing mistake that you could make is to not invest at all, or to put off investing until later. Make your money work for you, even if all you can afford is $20 a week.

While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another one. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.

Don’t expect to get rich overnight. Instead, invest for the long term, and have the patience to weather the storms and give your money time to grow.

Don’t put all of your eggs in one basket. Scatter it around various types of investments for the best returns and to minimize risk. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow. Don’t panic if an investment drops a few dollars. If the investment is worthwhile, it will likely go back up over time.

A common mistake that many people make is thinking that their investments in collectibles will really pay off. Don’t count on your antique or book collection to pay for your retirement years! Collectibles can be an enjoyable hobby and might appreciate in value, but it's best to not rely on them when preparing for retirement.

Don't neglect educating yourself. Learn about diversification. Study financial history. Learn about the psychological factors that cause people jump on the bandwagon near the peak of a market. Be sure to invest some of your money in assets (such as precious metals) that will likely retain their value, even during a financial crises.

A little education and patience goes a long way. Following these tips should help you to successfully invest for your future.

Are Rebates Worth the Time and Effort?

Rebates have become increasingly popular in recent years on many items, especially electronics and computers. Rebates of $50 or more are not uncommon.

Some items are advertised as free after rebate. Are these offers too good to be true? Some of them are, but there really are some excellent offers out there, especially if you are willing to take some sensible precautions.

Rebates involve paying the listed price for an item and then mailing in a form, perhaps along with a bar code and receipt to the manufacturer. Then they send you a refund thereby reducing the price of what you paid. You just have to wait for the discount. Here are some rules to make the process easier.

Rule #1. Rebates from reputable companies are usually just fine.

You can be pretty sure you will get the promised rebate from well known companies like Best Buy, Amazon or Dell but you should careful to not count on getting one from a company you’ve never heard of. If you really want the product and are OK with paying the price listed then buy it but just be aware that you may have some trouble getting the discount.

Rule #2. Check rebate expiration dates.

Sometimes, products will stay on the shelf after the expiration date of the rebate offer. It's good to double check details like this. Also, be careful that procrastination doesn't cause you to send in the rebate forms after the expiration date. (Please note that the expiration date for sending in the forms will likely be different then the expiration date for buying the product.)

Rule #3. Be sure you have all the forms required to file for the rebate before you leave the store.

Rebates will almost always require a form to be filled out, a receipt for the purchase and a bar code. Some stores will print out an extra receipt for you so you don't have to make a copy.

Rule #4. Back up your rebate claim.

Make copies of everything you send in to get your rebate including the bar code. Stuff gets lost in the mail all the time. If the rebate is for $50 it’s worth the trouble to back up your claim. This has happened to me in the past (once because of fraud by company employees), but I've been able to resolve the issue because I had the correct paperwork.

Another piece of advice is make sure that the product will satisfy your needs and not contain hidden costs. For example, a free printer might be a tempting offer, but it might not be worth it if the ink is far more expensive than other models.

What kind of experiences have you had with rebates? Have they been worth it for you? Please leave a comment if you have any stories or recommendations.