8. Be Prepared For a Financial Emergency

Financial advisors keep on suggesting to be prepared for any kind of financial emergency. It is better to keep a buffer amount ready when ever there is an emergency situation. An emergency fund should be quiet enough to handle any kind of risk and also effortlessly available. But keeping the entire fund in cash is not preferable and more significantly the cash will loose value if kept stagnant for a long term.

9. Give Precedence to Retirement Savings

The future retirees needs to be more careful planning their retirement plans as the world is growing faster introducing new challenges to survive. Low inflation, assured pension and support of a joint family made it easier for the previous generation to survive. Thus one should recognize and care fully study the risks and liability and plan a fully secured retirement plan.

10. Learn To Cut Your Losses

Holding on to investments which are incurring losses is not a good idea. Though investors believe that small investments and corrective steps are sufficient to secure their investment needs, most of the time it proves out to be wrong. An efficient investor should foresee the situation and sell off the stock if situation demands.

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