Money mistake 4: Playing it safe

Don't be too cautious. Surely you can live a little dangerously.

If you are in your 20s, consider investing at least some amount of your money in the stock market. (Check out: What's in a share? Money!)

Sure, the market will swing both ways and the prices of your shares will rise and fall like the tide.

But the good news is, you have time on your side.

When buying shares, what you need is time. That will even out the ups and downs. You can take the risk.

If you are sceptical of stocks, remember, they give the best return compared to other investments. They also beat inflation over time.

If you don't like the idea of buying shares, consider an equity mutual fund where the fund manager will invest in the share market.

If that too scares you, try a balance fund where only half of the money that the fund manager invests will be in shares.

The other half will be in other investments.