HOW TO RECOVER FROM A BAD INVESTMENT
Daniel from Facebook asks:
“If you have had a massive kick in the arse from a bad investment, how do you recover a bad investment and bounce back stronger than ever?”
If you have purchased a bad investment that is costing you more than it should, it is time to reassess and take action on repairing the situation.
If your investment has dropped significantly in value and is costing you in terms of cash-flow, it is important to look at the numbers and assess the likely trajectory of this investment over time. As Nathan says, if you want to get yourself out of a hole, stop digging. Stop throwing away your money on a bad investment – if it is eating away at your lifestyle and offers little prospect for the future, is it worth holding onto?
MAKE AN INFORMED DECISION
If your investment is performing badly now, what are the chances of it going up in value? If growth is likely in the future, how much will it need to go up in order for you to break even in your cash-flow and capital? Inform yourself, consult your success team and make an educated decision on whether to hold onto it until it gains value, or off-load it and reconcile your losses in another investment.
As Nathan says, some of the mostly costly education programmes are those of real-life experience. Learn from your experience. It is also important to take due diligence in making informed decisions at every step along the way. Make sure the team of professionals around you are experienced investors who can help you succeed in your ambitions, and always purchase in-line with your goals. Do your numbers, make sure they stack up and then take action. Sometimes we make decisions that cost us. As long as we learn from our mistakes and move forward with determination, our failures can be the very things that bring us closer to success.
Have you suffered from a bad investment? What did you do to bounce back? Please share your experiences in the comments section below.