मूढ़ मूढ़ाए हरि मिले, हर कोई लेओ मुड़ाये
बार बार के मूढ़ से, भेड़ ना बैकुंठ जाये.

Herd Mentality: Generally whilst taking any investment decision people tend to follow herd. Kabir says, if by shaving head one could attain moksha then the sheep should be the first one to attain moksha but it doesn’t happen. Similarly before taking decision on investments one must consider the need, risk apetite, goals, liquidity etc. Following the herd is not a good idea.

This is the most common and biggest mistake people make while investing. While following the herd they end up burning their hands. Normally small/retail investors enter the market when it would had already peaked out. The recent example is bitcoin, where max people invested at the top and within a year it crashed by more than 50 percent.

साधु ऐसा चाहिए जैसा सूप सुभाय |
सार-सार को गहि रहै, थोथा देई उड़ाय||

After falling trap to greed, people realize that they have accumulated many stocks or instruments which are of no use and by that time market also tanks. At this hour they need an advisor who can clean the portfolio and align their portfolio to their needs and help them to get rid of bad investments they made following the herd.

The advisor should know how to manage the emotions and expectations of the investors. Unfortunately, they are small in numbers and even the investors are also not mature in identifying such advisors. An advisor-investor relationship plays a very important role in creating a successful investment portfolio, which in turn creates great wealth.

धीरे-धीरे रे मना, धीरे सब कुछ होय |
माली सींचे सौ घड़ा, ॠतु आए फल होय ||

This is one of the most important aspects of successful investing. When one is investing in equity markets one needs to have long term horizon. Though equity has delivered far superior returns than any other asset class, it goes through the bout of volatility over short term. People need to have patience in equity investing if they want to reap the fruit.

Systematic investment is a good way of investing for retail investors. Not only, it inculcates the habit of regular investing it also makes an investor a disciplined investor. 

काल किे सो आज कि, आज किे सो अब I
पल में पिलय होएगी, बहुरि किेगा कब II

When it comes to taking action on health and wealth, people tend to procrastinate and postpone it for tomorrow, which very often never comes.

People say दुर्घटना से देर भली, यहा देर हो दुर्घटना है

This is abundantly true in the case of investing; a small delay at the start can create a big shortfall or it could increase the time period to achieving the goals significantly. Compounding plays such a crucial role. Therefore, take action start early, even if the amount is small to start with. (If time permits, more examples can be added here)

माँगन मरण समान है, मति मांगो कोई भीख |
मांगने से तो मरना भला, यह सतगुरु की सीख ||

The most ignored goal amongst indians is retirement goal. People don’t realize the importance it should be given. As old people around them are mostly pensioners and not too dependant on their children. Which will not be the case going future as more and more people are forced to retire or taking retirement before the age of 50 which may lead to another 30 years into retirement.

Secondly the inflation in medical expenses is very high, therefore it is advisable to plan for retirement to avoid dependency on others. As kabir says being dependent on others is equal to dieing if not physically but mentally.

खरच बढ्यो उद्यम घट्यो ,नृपति निठुर मन किन, |
कहु रहीम कैसे जिए ,थोरे जल की मीन ।।

In the retirement days if one is forced to compromise on life style that would be very painful experience for someone who lived life like a king/queen. The condition of such investors is similar to that fish who is swimming in shallow water, she can’t swim properly and can’t die peacefully.

This may happen to people who will not do retirement planning without realizing that there will be no income but expenses like medical expenses would keep on increasing with astronomical pace. The rate of inflation in medical and educational expenses is very high

चाह मिटी, चिंता मिटी मनवा बेपरवाह।
जिसको कुछ नहीं चाहिए वह शहनशाह॥

For a common man It’s not important to become rich but one should try to become wealthy. The difference between rich and wealthy is a rich person always look to have more whereas a wealthy person enjoys what he accumulates without compromising.

It’s always better to focus on the goals of life and enjoy every bit of it. The person who plans the financial life well generally starts planning for it very early.

As someone said ‘सब ठाठ पड़ा रह जाएगा, जब बान चलेगा बंजारा

By achieving the goals one can enjoy the life. It will allow to pursue hobbies, learn new things, play sport of choice etc.

कौड़ी कौड़ी जोरि के , जोिें लाख किोरि |

चलती बाि न कछु ममल् या ,लई लुंगोटी छोरि ||

Investing is all about a journey which needs to be well planned, keeping in mind the present and future resources. Once the destination is decided, resources need to be utilized in the most efficient possible way. And the investor can enjoy this wealth created only when she knows the objective behind accumulating this wealth.

Many investors especially the risk averse investors keep accumulating wealth throughout the life but since the investment is not mapped to the objective, the investors couldn’t enjoy the wealth they create during life time.

As it is important to create wealth it is equally important to use that wealth during the life as the wealth generated is of no use if it is not utilized to bring in happiness. The difference between being rich and being wealthy is, wealthy investor enjoys the wealth with family and spends/invest wisely.