5 Financial Traps That Can Get You Into Trouble

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Financial difficulties span all across the board from small difficulties to major  ones that can ruin your life. There is a correlation between certain  actions that someone takes and the amount of debt they are in. It is all  too often a common thing to see older people living on social security  with extra money to spare but successful people who make a good amount  of money with nothing to spare. Once financial difficulties start, it  can be easy to keep them progressing and much harder to slow them down.  It feels like everything is piling on you and you cannot get out of the  situation you are in. There are 5 different traps that can suck you in  financially.


Leasing a vehicle is a major trap that people find themselves stuck in.  The problem with leasing a vehicle is that you never own any portion of  the car. You place a down payment down on the vehicle and make monthly  payments to it, however, when the lease runs up you must turn the  vehicle in and then you can lease another one. You are basically  throwing money away in this situation. It is better to purchase your  vehicle and even make payments if you have to. At least this way you are  paying towards something you will own eventually.


Credit and Loans

Another major financial trap that catches people is credit cards and  loans. Credit cards are a dangerous habit to form if you do not actually  have the money. A credit card allows you to make a purchase for  something without having to pay for it at that moment with the intention  that you will then pay off your balance or at least towards it. Some people become stuck and then never pay off their credit cards or become attached to them and have to continue using them. High interest rates and monthly payments will surely get you stuck.

Payday loans are good for the once or twice use but if you continue to use them you will become financially strapped. People rely on these to help them pay for something that they do not have the upfront money for. Payday loans are very easy to obtain but they carry a hefty  interest rate with them. Normally you only have a week or two to pay  them back.



Not saving any money for emergencies will get you into some trouble. It  always seems like when you do not have any money set aside, something  that can go wrong, will. You are left to then find a source of funding.



Many times people do not think about saving money for retirement. It is  important to do so to be able to maintain your lifestyle later in life.  If you start saving at a young age, the money will add up.



People run into trouble when they live a lifestyle and do not have the  proper funds to live that lifestyle. It is common to see people spending  more money than what they make. This type of lifestyle will get you  into a financial trap.

Financial traps are easy to get into and harder to get out of. It is  common to see people stuck in stressful, financial situations. Learning  and recognizing the habits that put you in a financial dilemma is the  start to freeing yourself from the debt that holds you down.

How to Cut Back on Expenses During the Crazy Holiday Season

If you’re still rushing around like a crazy person even though Christmas has passed, you’re not alone. It’s unbelievable how the days seems to fly by and soon enough you’re down to the wire with only a few days left until the holidays are here. If you’re tight on funds this holiday it’s understandable. Sometimes it’s difficult putting aside money for Christmas due to other expenses that creep up out of nowhere or other reasons, such as a growing family or an expensive home to take care of. Whatever the reason may be, maybe it’s time to think of ways to cut back. That way when Christmas rolls around next year you’ll have some extra funds to buy your mom and dad or siblings a gift they will absolutely cherish.

Instead of Purchasing a New Cell Phone, Look for a Used One

It’s easy to get caught up in the hype of needing a new cell phone every time a new one comes out, but the reality is that new cell phones are expensive, especially if you already have a nice phone that’s functioning just fine. Usually cell phones cost a lot more if it’s not time for you to upgrade your current cell and in fact a lot of money can quickly disappear if you find yourself purchasing a new phone every year or so as opposed to waiting the full two years to upgrade. If you absolutely would like a new phone or happen to break your current one, there are used cell phones for sale too. Find a great deal on a used cell phone that’s relatively new and this phone will get you through the year without spending more than what your budget allows.

Go Out to Eat Less

Though it’s tempting to take your family out to dinner more than once or twice a week, depending on the size of your family, a dinner bill can quickly add up! Even if you’re a fan of restaurants such as The Soup Plantation it still gets expensive. Instead of spending a lot of money taking your family out all the time, try to go out only once a week or every other week and be mindful of where you take everyone. By cutting back on expensive restaurant meals you’ll be able to put aside more funds for presents for Birthdays and the holidays when the extra funds come in handy.

Start a Savings Jar

If your family would like to visually see how much money they can save up in a given year or six months at a time, start a savings jar and place it somewhere in the kitchen where your family can see it but lurking neighbors cannot. Your kids will enjoy watching the money pile up for a few short months and it will teach them the mentality that money is possible to save it up if you incorporate discipline into your life. Pretty soon you’ll have enough funds to treat your family to a vacation and you may even use some of it for Christmas next year because you were smart and planned ahead in 2013!


About the Author: Sierra is a freelance writer who likes to plan ahead and save so she can give her family members great gifts during the holidays!


Helpful Financial Tips for Single Moms

Single moms don’t have it easy when it comes to finances.  It’s a cold hard fact that we provide for our kids out of our own pockets.  Well, if you’re lucky enough to have been blessed with deep pockets, or if you regularly get a fat sum of money deposited from your ex-husband’s to your bank account, then putting food-and more- on the table should not be so much of a problem.

For the most part, it’s us and us alone when it comes to dealing with financial matters- from the heart-pounding task of filing a tax extension to clearing up credit card debt.  Dealing with finances is merely a chunk in the whole single-parenting pie, but we do have to straight-facedly take a bite of it.  Here are some things we can do to sort out our finances and save money:

Cut down on luxuries.  Whether you’re a mom who can’t last a day without a tall Starbucks latte or you find it extremely difficult to say no to your friend who keeps selling you fine jewelry, you have to try to cut down on unnecessary expenses.  Sure, we all need to reward ourselves, but that can be done once in a while.  Let’s face it, they’re called luxuries because they are things which we can do without.

Make it a habit to save.  That old piggy bank which has been gathering dust in the deepest recesses of your kid’s toy chest may have to once and for all see the light of day.  Try to put aside some money each day, and before you know it, it’ll amount to something big enough to pay for something really important.

Sort out those taxes.  Even if you happen to be a work at home mom, you still can’t escape paying taxes.  Try to avail of a good type of tax preparation software to help you take the guesswork out of tax-paying.  With all the intricacies of paying taxes, you may need some help.

Clear out debt.  If you can help it, don’t loan money from any entity, living or otherwise, unless it’s for something worthwhile such as a house.  If you still have a huge credit card bill staring you in the face, try to pay it off all at once with whatever money you’ve already saved.  Nothing can make you breathe more freely than being debt-free.

If we didn’t have our kid’s future to think about, splurging on shoes would be ok to add to our daily to-do list.   But the thing is, we single moms must save up for their future while having to cut corners today.  In the end, giving up dreams of having that gorgeous Louis Vuitton bag will pay off.