real estate

5 Techniques to Quickly Recover From A Bad Investment

1. Avoid Sunk Cost Bias

A common tendency among those who have committed on shaky investments is to double down to recover and achieve your initial ROI goal. This is obviously a faulty and illogical methodology that only makes matters worse. The right thing to do is to immediately cut your losses and correct your portfolio instead of hedging on low possibility upside. In short, get your head out of the sand and face your losses!

2. Budget

Bad investments will hurt your overall worth, there is no way around it. Depending on the importance of the investment, sometimes it is worthwhile to downscale your lifestyle in order to accommodate lost funds. Create a new weekly budget that works within the confines of your shortened funds and cut otherwise unnecessary expenses that can no longer be sustained. Although this may hurt to accomplish, it is an entirely necessary step in the process of recovering from a bad investment.

3. Analyze Your Loss Objectively

Losing a considerable amount of money on a certain investment can be an emotional experience for anyone. It’s hard to not blame others or feel like you were shortchanged by the system. In reality, these feelings may have an element of truth to them, but at the end of the day all you can control is your own actions. Objectively go through the steps that led you to your bad investment, was it the poor advice of a friend? Or a tip you got on the internet? These things can lead you to conclude what you should or shouldn’t do next time you decide to make a similar investment. Look at the facts of the situation and don’t look for scapegoats or become disillusioned with your self. You can and will recover from this situation, you just have to learn from your mistakes.

4. Start Saving

In similar vein to tip two, put as much money aside for reinvesting as possible. Lower your bills as much as possible and allocate any leftover funds to your savings. This ensures that you can reinvest as soon as possible and recuperate your previous losses. There is no get rich quick scheme that can help you out, you have to spend a bit of money to make a bit of money.

5. Find A Profitable Investment

This step, of course, is the kicker. The golden question. What investment will make me profit? The fact of the matter is that no one has a true answer. Investments are all about levying risk against future profit, and at condoandloft.ca we offer some of the lowest risk investments you can possibly get into. Real estate, especially pre-development condos, are very likely to appreciate at least a little, rarely will a condo purchased in it’s development phase decrease in value over time. If you know what you’re doing, condo real estate is a great way to invest. Our team of experts have been asked every question under the sun, and we know all the finest details of buying a condo and of the condo market at large. This expertise combined with the low risk nature of purchasing a condo creates a fantastic low risk investment that has been vetted by industry professionals.