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Discover tips and tricks on how to save and invest money by Oval Money

When it comes to money (as in life) being able to distinguish fact from fiction is the first step towards making better decisions. In fact, not only will it help you make better decisions, it will stop you from making bad ones.

When it comes to investment practices there are some long running and common misconceptions that you should be aware of so.

Myth #1 - Trust your gut instinct

Whilst trusting your gut is good advice in matters of the heart and the stomach, with money it is less so. When it comes to investment there is no substitute for good, old-fashioned research.

Don’t, for example, buy shares in the company that just ‘feels’ right. Make sure you’ve looked at their structure, their past performance, and their forecasted figures. Money doesn’t have emotion built-in; that comes from us. All investment decisions should be made with a clear and logical head.

If you're new to investments, don't let yourself be caught up in emotions. Start from the basics: you can always start your journey with low risk products that reflect the values you believe in, such as the ones in the Oval investment section. Slowly but surely you will see the rewards.

This is also true when there is a dip in the market. You invest for a long time, not a good time. If your stocks suddenly take a hit then don’t panic and sell just because your gut is telling you to panic. Over time the stock market will always ebb and flow, but it is the log term investments that will more likely earn you money.

Myth #2 - If you don’t invest in your 20s it’s already too late

It may be due to the panic of an ageing population, or because state pensions are holding a rather precarious seat in this day and age. Whatever the reason, a climate of uncertainty and lack of financial education have deterred those who would like to carry out investments and other financial operations.

Whilst it’s certainly true that due to the eternal wonders of compound interest, the earlier you start investing the ‘easier’ it is to grow your wealth - simply because you have more time - it does not hold true that if you don’t start investing in your 20s then you’re too late.

Quite the opposite in fact! You can invest at any age, with any amount of capital.

In fact, the older you are the more likely it is that you have more money to invest, as your earning power is greater at this time of your life. This means that you are automatically starting with larger figures.

Myth #3 - Humans are better than technology

Entrusting the control of our finances to technology is an idea that leaves many of us wary. It may just be a preconception inherent in the human psyche, but we firmly believe that human advisors outperform apps, especially when it comes to investments. Is this really the truth?

The technology that aids investments is one of the least vaunted developments of the 21st century, and it deserves much more attention. It has increased accessibility, as it allows you to invest, divest or check your investments status simply on your phone. It also has much lower costs than traditional financial advisors.

Applications like Oval use advanced technologies, such as machine learning and artificial intelligence, to provide personalised services that are highly efficient and precise. They use algorithms that are specifically designed to provide a selection of investment opportunities that you can choose from based on your preferences.

If you have just started your investment journey and you have small initial capital available, then smart financial apps can be a way to make it grow without having to delegate, and gives you the chance to slowly but surely build up your expertise in the matter.

Your capital is at risk, and past performance may not be a reliable indicator of future results. Oval Money is not permitted to provide financial advice, and if you have any questions please consult an expert.

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