4. Choose the right ones to invest

First try understand your investments so that you pick the right ones, and know when to sell them. Learn the risks involved in any type of investment before you buy. When you start with the individual stocks, it is good to select stocks in familiar companies.

Secondly if you don't know what to do being a landlord, or about home maintenance, then income properties are probably not a smart investment for you. If you are a beginner then understand how foreign exchange, commodities or option markets work, or else they are not a smart investment unless you know it better.

5. Educate yourself properly

Key towards investing is educating. If you think that you need to pay financial advisor for getting advice then you are wrong as you don't need to them. Instead you can attend free lectures, or talk to a friend who knows finances.

Read everything you feel right from the prospectus for a mutual fund, to articles in reputable magazines and newspapers. When you are well-informed, you will know where and when to invest.