Become an Enlightened Investor in 2011

Investing is not rocket science. Anybody can become an experienced investor if one is willing to pay the price. Whatever path you have chosen for yourself, someone has gone before you. There is more than sufficient body of knowledge in any area of business or investment you want to venture into. You want to have a solid foundation in place before you start building. If the foundation is faulty, you have a disaster waiting to happen in your hands.

The most common mistake people make in the area of investing is to dive in head first. Rather than invest in their investment education, they try to “save” money by investing blind, learning on the job. That is a very costly mistake and can wipe you out financially in some instances. It is penny-wise, pounds foolish to bypass the education process and go straight into practice. In the corporate world, you need a degree (proof of having undergone requisite education) before you are entrusted with certain responsibilities in a trainee position. No one considers it a waste of money to get an education. We are all aware that ignorance is very expensive

It is rather very strange that folks try ignorance over and over again when it comes to investing. They feel education is too expensive. They save thousands and risk millions in the process. It does not sound like common sense. Rather than attend seminars and read books by those who have been there, and done, they decide to go the DIY route or seek advice from nay-sayers or those that have nothing to show.

You need financial literacy to be able to pick a good broker for instance. The quality of questions you ask determines the quality of answers you get. You cannot ask the right questions if you do not know your left from right. Commonsense demands that you beware the topless guy that promises you a shirt. If your broker cannot use his financial advice, of what use is that advice to you? If you are financially illiterate, you can easily be bamboozled by high-sounding financial terms.

Every goal involves going through the process to achieve it. There is no shortcut to success. If you are not willing to go through the process, you will pay dearly, losing time and money in the process. Become an enlightened investor in 2010. Know what you are doing before you set forth. Do not dive head-first into the deep end of the pool. Dip your feet at the lower end first, and become comfortable with that before going deeper.

Starting in early January, I will be taking questions from readers and addressing their issues specifically. Do send in any questions you may have to info@financialfreedominspiration.com

Happy New Year 2011.