Financial Decisions to Stay Far From

If you’re not  careful with your financial decisions, you could quickly find yourself in debt and struggling to stay afloat. Managing the bills, paying the mortgage, and staying on top of your finances are always going to be  tedious and frustrating chores. However, if you make the right financial  decisions then you will always have enough money on hand to handle these expenses. Below, you will find financial decisions that you want stay far away from, so that you can keep your financial stability intact.

 

Payday loans

While short-term loans have become particularly popular in recent  years, they are a financial decision that you want to stay far away  from. Payday loans come with severely high interest rates and they have  very short-term repayment periods. This means that you will be expected  to pay off the payday loan within 2 to 4 weeks upon receiving the cash.  This is a very short-term timespan and it’s often difficult for  borrowers to manage.

 

Car leases

While a car lease can be much more affordable than actually  purchasing a car through financing, they are generally not recommended.  Car leases are short-term solutions to getting a reliable car, but you  will often have to purchase a car or renew your lease after your current  lease has expired. You do not own the vehicle and when you barely have  enough money to afford the car lease payments, it’s a negligent  financial decision.

 

Unmonitored credit card usage

Using credit cards responsibly is a great way to build your credit  score and improve your financial standing with the banks. However,  unmonitored credit card usage or over-usage of your credit cards could  build a considerable amount of debt and leave your finances in turmoil.  You need to be very careful with how you use your credit cards and how  much money you apply toward them at the end of the month. Paying the  minimum payment is a negligent decision as credit cards should always be  paid off in full if possible.

 

Committing to a substantial mortgage

When you go to the bank and you are given a preapproval on a  mortgage, you should never purchase a home that maxes out that mortgage  amount. Banks are often far too generous with the amount of money that  they approve. If you want to live in easy-going life, you should spend  far less than what the bank will approve you for on a mortgage. This  will make your monthly payments more affordable and you will have more  money left over in your budget to afford other expenses.

 

Risky investments

There are lots of ways that you can invest your money, but some of  them are more risky than others. For instance, Forex or currency trading  can be wildly profitable, but it has a very steep learning curve. Some  people tend to dive head into new things that they are excited about and  this often leads to debt and risky financial decisions. Try to control  your spending and do not jump into risky investments without weighing  the options that are available to you.

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About Pepper

I am a single working mom, trying to raise my kid the best way I know how. Join me as I navigate my way through the jungle that is Single Mom-hood, armed with rose-colored glasses and strength of spirit. As pepper adds spice to food, so does my daughter add spice to my life. She makes life no less than…PEPPERRIFIC!

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Comments

  1. Good financial tip article Pepper. Uncontrolled debt or loan leads to financial turmoil.

  2. This points are actually true and I agree with you. before you spend, educate yourself first so that you won’t regret something later on. :D

  3. Nakarelate ako dun sa Credit Card :( great tips here. I am going to bookmark this page to remind me on my finances. thanks pepper :)

  4. Great reminders especially for credit card holders. just be mindful of the essentials.

  5. Wanderer Juan says:

    This is a good list of potential financial debacles. It is best to always keep finances in check to avoid getting into bad debt.

  6. Unmonitored Credit Card can really be difficult as 3.5% straight interest is really substantial. Credit cards can only be used to stretch cash but not as a loan alternative.

  7. Financial intelligence is what we lack…we can’t control if we have small or big money. i remember my post about a psychological wallet…thanks for sharing.

  8. I agree with all of this. We should all be careful with money management

  9. Quite a list of financial doom catcher. Risk-taker and adventurous individuals will definitely engage in any of these undertakings. But, I will go with the Tagalog adage that goes. ‘Magkasya ka sa kumot mo’. Don’t spend more than you have.

  10. I like your post. This is the one I needed as of the moment. Sa panahon ngayon kailangan magtipid.

  11. risky investments indeed. I agree with that i’ve know many frends who invest ot such business but regret it after xx

  12. I agree, avoiding all things that you mention will keep one self finances afloat. Most of the people can relate about un-monitored credit card usage.

  13. So far, I’m still away from these as we try our best to live within our means. ^_^

  14. I’m interested to know your advice on where it’s best to invest our money on: money market (bonds, mutual funds, stocks and Forex), real estate, business (online) and business (offline). What do you think? :)

  15. I have credit cards and I am very careful in using it, I have it for advantage and I don’t abuse the power of it so my debt will not grow.

  16. you just need to be wiser in handling your finances and apply due care in analyzing risks involve. Yahweh bless.

  17. Great tips. I stayed away from credit card because I’m prone to overspend. I use debit card instead

  18. I guess it all comes down to your own personal preferences.. sometimes, risks does gives you something..

  19. The one thing I regret doing din is opening up a business, kahit franchise business, lang when I still had more extra money. Now, it’s just pouring in enough for expenses and a little bit for savings pero it still would have been nice to have something more extra. =(

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