STREET DOGS

Five signs you’re about to make a bad investment decision:

You are being influenced by someone who isn’t a professional. People don’t always get into trouble on their own. They often have help from a spouse egging them on or a friend or co-worker. You might ask for advice and get bad ideas in return. You might be offered unsolicited advice that you later wish you hadn’t taken. That’s not to say that just because someone’s not a financial adviser they can’t give good advice. But any number of things can happen, so it’s worth considering exactly who is inspiring or encouraging you to invest, and why.

You haven’t done your homework. If you’re not entirely sure what you’re investing in and haven’t considered the negative consequences that could arise if it goes bad, then clearly you may be asking for trouble.

A lot of people are woefully deficient in their knowledge of what they are investing in – something you might want to remember the next time you plan to invest in something you’re not entirely sure about.

You have no real reason for spending the money. It’s one thing when you’re spending money that will help you get from point A to point B – think student loans. But you might be toying with trouble if you’re paying for a want rather than a need.

You are panicked or are feeling pressure. There are no absolutes, you might panic or be under pressure and still make a smart investment. But it’s unlikely. So, when your heart is racing and your palms are sweaty, you should rather postpone a financial decision, if you can.

Your gut is telling you “no”. And why is your gut telling you that this investment is a bad idea? Probably because it is. So don’t ignore your intuition.