A golden rule in investing is to have a good financial plan. Do not invest money only on the basis of what your friends or relatives say. You must identify your priorities and set realistic goals.

Calculate your monthly expenses and see how much you can save every month. Make a list of things you can and cannot avoid. Learn to strictly stick to you plans.

3. Don't invest all your money in the same plan

No matter which investment plan you choose, you must not invest all your money in just one plan or in one bank. You must allocate your resources across various schemes, be it mutual funds, fixed deposits, stocks or small saving schemes.

It is very important to diversify your investment. Remember, interest rates and services charges vary from one bank to the other. Before you invest money in any scheme, call up banks, financial service companies and make sure you get the best deal.