Do you invest and forget? Are you the type of person that puts a sum of money into an account that pays really well… only to forget about it later and then wonder why the investment isn’t bringing you good returns?
You might call this invest and forget. It’s the process of doing your research before making an investment, but then forgetting to keep a close eye on it to see how well (or badly) it is doing. This is a common mistake many people make, but the sooner you can get out of the habit of doing it the better off you will be.
Make a point of checking your investments regularly
This applies to all investments. They could be simple savings accounts or complex stocks and shares investments. Whatever the case may be you should make a list of them or at least know where they are held and what return you are currently achieving. You can then check them every few weeks (depending on the type of investment you have) to see whether they still represent good value for money.
Different rules apply to different types of investments
Some investments provide a set amount of interest over a set period of time. You don’t really need to worry about these but it is worth taking a look at them once that set period comes to an end. Sometimes the money might automatically be swept into another account, and other times it might sit where it is earning a lower rate of interest. Either way you stand to lose out if you don’t find another better paid investment vehicle to move it over to.
Obviously with stocks and shares you need to keep a closer eye on what is going on. However you also need to play these for the long term for the most part, so bear that in mind. A loss in value for the short term shouldn’t lead you to withdraw your cash. Generally speaking most shares will gain in value over time so play it safe here.
The main rule of thumb – never forget any of your investments
This is the best way to ensure you are never out of pocket, or at least that you minimize the chances of losing out on the best interest rates. This will benefit you financially throughout your life if you make it a habit to keep track of your investments from month to month.
It also means you can quickly move anything that has dropped significantly in its rate of return to you. We all know investments start with great interest rates – especially with regard to savings account. We also know they tend to drop after a while. However new accounts are normally issued that are a better choice and if you keep an eye on how your investments are doing you can easily sweep some cash from one account to another.
Keep this in mind and you’ll see the results over time.