In our daily lives, we inevitably encounter various financial products. While considering the risks and returns, it’s also important to be vigilant about the traps hidden within these products. We welcome both professionals and non-professionals to discuss the subtle financial pitfalls we may encounter in life. Let’s help each other avoid these pitfalls on our journey to financial freedom.
I’ll start with one: Never believe that financial management can make you rich.
Financial management alone cannot make you rich, as you need to have an income in order to apply your knowledge and grow it successfully. Thinking long term when it comes to investing is key, many people see some movies and think the path most "investors" in the stock market use to get rich is buying many shares in a lucky company for a few cents and waiting until it's worth hundreds of dollars a share is the route to success - it's not and it's akin to winning the lottery. Most wise investors will diversify and build their stock market portfolio (in this example) over decades, adding consistently each month and putting their money to work before waiting a long time for it to grow to a sizable fortune.