There are hundreds of different money mistakes you can make in life. It’s unavoidable that you are going to make some occasionally. There are a few especially bad ones, however, that many people make repeatedly. Here are a few financial slip ups that you should vow never to make again.
5 Money Mistakes You Should Never Make Again
- Quit loaning money to friends who won’t pay you back: Many of us have done this before, and often it’s with the best intentions. We want to help people close to us. The truth, though, is that if you know a friend is unlikely to pay you back, you shouldn’t lend them anything you can’t afford to lose. They might need the money, but if you need it too you shouldn’t let them pull you down. Only give this kind of friend money if you can afford to never see it again.
- Quit buying things you know you don’t need: This tip should be obvious, but the country is full of people who fill their homes with things that they will never use. These items just become clutter. Rather than shopping emotionally, try to assess the likelihood that you will actually use a new item before you make a purchase.
- If you need the money, don’t invest it: Investments are an essential path to long-term wealth, but part of the reason they pay a return is because they represent a risk. If you invest something, no matter how wisely, there is a risk you will lose it. Never invest money that you need, because you may never see it again.
- Don’t sign something you don’t understand: When it comes to money, you always need to know the deal you are getting. Never sign an agreement for something without knowing exactly what you are getting yourself into, even if you have to hire a lawyer. Yes, attorneys can be expensive, but often they are a lot cheaper than a bad deal.
- Stop living life without a budget: If you don’t keep a budget of all your expenses you seriously need to make a change. This is the financial equivalent of living solely off of fast food. It’s time to pay attention to your money.
Becoming a money expert is a lifelong journey that not everyone will choose to take, but some of these basic commitments will go a long way. It’s time to make a change. Life is expensive. There are enough financial obstacles without you getting in your own way.
Julian, Crowder and Shuster is a firm of Lewisville bankruptcy lawyers with the knowledge and expertise help you resolve debts and find financial success.