5. Taking on too much, or not enough, investment risk

The first rule of investing is to not play with money you’re not prepared to lose. Oftentimes, this idea alone can make a lot of people reticent and the conversations just end then and there. 

Here’s another way of thinking about it. Shaun Melby, the founder of Melby Wealth Management, is encouraging a lot of Americans to take a little more risk when they can afford it. Consider investing if you have the money you won’t have to touch for approximately 5 years. That way you can rely on growth. 

And if you don’t have enough cash to let sit for the same amount of time, then the stock market isn’t for you.