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A 100% success rate for investments is everyone’s dream. But how many of us are actually working towards achieving it? Dreams don’t become reality unless and until we act towards it. Enemies are everywhere whether we realize or no. Similarly, for your investments as well there are enemies that are capable of eating up all or part of your investments and return.  There are a few common obstacles that arise for everyone. This should be the reason for you to plan in advance in order to cope with them. Following are the most common enemies that have an effect on your financial success.

Lack of Planning and Discipline

It’s difficult to achieve anything without proper planning and discipline. In case of your financial investments as well, you need to properly plan out your investment plan and stick to it no matter what. Discipline is the key for long term success, do not take things for granted and leave them midway. As a first step, create a budget and try to avoid unnecessary expenses. Without discipline, it’s impossible to get rich. If you are spending more than you earn, the math will never make sense. Have a plan for expenses and stick to it. This is the best way to achieve financial success, even though it takes time.


Things do not enrich your life. Each time a new electronic gadget is released, most of us are tempted to buy them. How many of us actually need it? Understand the difference between necessity and luxury. Once you are comfortable and have achieved 90% of your goals, it makes sense to spend on luxurious things. Simple living and high thinking should be your motto for life. High thinking both in terms of for you and as well as for the society. Material things can be achieved when all your primary goals are achieved. Don’t give in to lifestyle inflation. Lifestyle inflation means increasing your spending with an increase in your income. Rather, you should aim to increase your investments when your income increases. Don’t let material things take a higher leap over your financial success.


Of course, not all debt is bad. Some may feel living a debt-free life is best, while others feel leveraging debt is good. Understanding how much debt is good and how much is bad is the key. Debt is the biggest enemy that would eat into your financial success even before you realize it. For loans such as educational loan, home loan, small business loan, etc. have tax advantages and having such debt is good. However, personal loans are the costliest, make sure you don’t have one. For that matter, credit cards are also something that you should stay away from, as their penalties can cost you high.


All citizens are obliged to pay taxes, but not to an extent where you pay more than required. Tax planning plays a vital role in our financial planning. Why would anyone want to pay more? Therefore, try to understand all the exemptions that you can leverage to minimize your tax outflow. Pick the right instruments that can help you build wealth while reducing your tax liability. Investing in tax saving schemes is in your hands, don’t pay more and let it affect your financial success.


Another hidden enemy that has the ability to wipe out your returns completely. It might not do it at once but will do it every year. Always make sure that your investments are such that you are able to earn returns over and above the inflation rate.

Investment Mistakes

Poorly structured investment portfolios can be your enemy for financial success. Make sure you have the right asset allocation and are invested in the instruments that suit your risk tolerance and investment horizon. Striking the right balance may be difficult and might take time, however, the wait is worthwhile. Don’t be emotional towards investing. For the financial success that you foresee, educate yourself and diversify your investments


Unexpected events in life have a great impact on your financial success. For example, unemployment, illness, legal complication or death, etc. Unless you have an emergency fund that has the ability to address the emergencies, it is going to be a struggle. While making investments and doing your tax planning, ensure you are simultaneously holding cash/ investing towards an emergency fund. Future is uncertain, hence no harm in being prepared for the worst. Make sure you and your family are insured with the right policies.


Try to address the above enemies with the right strategy and make your investments work for you. At any stage, there will be factors that would always want to pull you back. You’ll be successful only if you are able to fight them. Therefore, don’t just dream about financial success, make it work with the right strategies and planning.

For assistance always consult a financial advisorScripbox will help you plan your portfolio in a better way and guide you through financial success.