Be Aware Of These 7 Biggest Psychological Money Traps
6. Conservative savings
Whenever one gets money or for instance any riches from their elders that they have saved over years and then gifted it to their kids, people take extra care of that money and do not invest it in risky propositions. They fear losing the precious money on investment and therefore put it into accounts that are less likely to be affected over the course of time. But the more conservatively the money is saved the less are the chances of it growing.
The Solution
Always treat gifted money as your normal earnings and deposit them along with your own money. After some time when you no longer feel the inherited money as ‘precious’ money, you can easily invest it in stock market and reap benefit out of it. You will soon realize that the profit from riskier investments outperform the safe conservative savings.
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