We all run into trouble now and again. Hopefully we learn from our mistakes, but you know what’s even better than learning from our own mistakes? Learning from someone else’s. We’ve compiled a list of five super common money mistakes we and countless others have made in order to help you avoid the same trouble.
Top 5 Money Mistakes
- Paying Big Rent – Avoid getting a home that requires large rent or mortgage payments. Yes, we know that you outbid 50 Cent for this place and that it would be a shame to let it go now just because of the $50,000 per month rent, but just look at Fitty; even he can’t really afford it right now.
- Using Credit Too Often – Using credit is fine, and actually helps you to build the necessary credit score to get good loan deals for a house or car in the future. However, maxing out seven credit cards in one week while maintaining a fictional cover story that you’re actually 007 is wild. Bond would never be able to pay back that credit at the end of the month, and neither will you.
- Not Making a Budget – Make a budget. For the love of everything that is good and holy, make a budget and stick to it. Allow yourself a discretionary fund to have a little fun, but don’t go on any sprees. Tom once lived a week without a budget as an experiment… he’s afraid of grapefruit now. It’s no way to live.
- Other People’s Debt – If possible, avoid cosigning someone else’s debt at all costs. It’s hard enough trying to handle your own money problems, but making yourself responsible for a business loan your BFF just took out to start their own doggie eyelash curling business could go very wrong (or very right… but probably not).
- Buying on Impulse – It’s hard, we know. If you’re anything like the rest of us, one second you could be going strong, totally adamant that you aren’t going to spend money, then you wake up three days later in a pile of expensive clothes and jewelry with six plane tickets to Morocco in your left pocket and an embarrassing number of IHOP receipts in the other. It happens to the best of us; happened to Jim twice.
We hope you take this opportunity to learn from our mistakes, but if you’ve already made a few mistakes of your own, feel free to contact us for a free consultation. We promise that whatever story you tell us; we can top it.
Call or fill out an online form today to find out how a Lewisville, TX bankruptcy attorney can help you achieve your goal of becoming debt free.