One of the biggest errors in judgment regarding investments is to wait until you have lots of extra cash. Keep in mind that even small amounts of money will add up over time, making it a good idea to start early.
Another common mistake is not being well-diversified. Being diversified simply means not putting all your eggs in one basket … so rather than investing everything in one company, you spread the risk across several companies. That way, if some of your investments take a hit, the others should provide steady growth.
Consider using mutual funds – which are pooled investments that are managed by a financial professional – to diversify your investments for you. There are many types of funds, so talk to a financial planner to create a plan that best fits your situation.