In today’s world, people are more aware of saving and investing than ever before. Many regularly invest in mutual funds, SIPs, fixed deposits, and other financial products. Yet, a large number of individuals still struggle financially despite years of disciplined saving and investing. This often leads to confusion and frustration: “If I am doing everything right, why is my money not growing?”

According to financial experts, the problem usually lies in three common mistakes that most investors unknowingly make. Identifying and correcting these mistakes can make a huge difference in long-term wealth creation.

Mistake 1: Relying on Hearsay and Popular Opinions

Many people invest based on what they hear from friends, relatives, colleagues, or online groups. Statements like:

• “Equity always gives the highest returns”

• “You should earn at least 15–20% every year”

• “This fund is performing well, invest more in it”

While these statements may be true in certain situations, they are not universal rules. Every individual has a different income level, financial responsibility, and risk tolerance. What works for someone else may not work for you.

Experts suggest that investments should be aligned with your personal financial goals, time horizon, and risk profile. Asset allocation, liquidity needs, and tax planning must also be considered while building a portfolio.

Mistake 2: Setting Financial Goals by Comparing Yourself with Others

A very common error is setting goals by looking at others. For example:

• “My friend bought a house at 40, I should too”

• “My colleague is sending his child abroad, I should plan the same”

The truth is, everyone’s financial life is different. Income, expenses, family responsibilities, medical costs, and liabilities vary from person to person. Some may be supporting parents, others may have young children, while some may be repaying loans.

Your financial goals should be based on your own life situation, priorities, and future plans, not someone else’s achievements. Copying others can lead to stress, unrealistic expectations, and financial pressure.

Mistake 3: Following Investment Advice on Social Media

Social media is flooded with investment tips, reels, and videos promising quick and guaranteed returns. Many so-called “finfluencers” claim that their strategies have made thousands of people rich. Some even promote specific stocks or schemes without explaining the risks involved.

Experts strongly warn against blindly trusting such advice. Many of these influencers are not certified professionals and may not disclose the full picture. As a result, people often end up losing their hard-earned money.

What Is the Right Approach?

If you feel confused about planning your finances, it is wise to consult a professional investment advisor. With a small fee, you can get a personalized financial plan designed according to your:

• Income

• Expenses

• Financial responsibilities

• Risk appetite

• Age and retirement goals

A well-structured plan helps you stay focused and disciplined over the long term.

Expert Recommendation

Financial experts believe that wealth is created through proper planning, patience, and consistency. Avoid emotional decisions, market hype, and herd mentality. Instead, invest with a clear purpose and long-term vision.

In conclusion, saving and investing alone are not enough. What truly matters is how and where you invest, and whether it aligns with your personal goals. By avoiding these three common mistakes, you can put your finances back on track and ensure steady growth in the years to come.