7 Dangerous Money Mistakes to Avoid

Dangerous Money Mistakes to AvoidWe all have our hands full managing our money. But you must be on top of it all the time, or you could run into serious problems.

Here are 7 Dangerous (But Common) Money Mistakes to avoid:

#1: Using Payday loans to get by.

You might think that a Payday loan is helping you out. To cover an expense you just don’t have the money for today… Yet you must always avoid this type of quick cash loan. As the average APR on Payday loans is over 300%!

#2: Not having a Will.

You’re setting yourself up for trouble in the future, when you don’t have a will in place, that communicates your wishes after you’re gone.

A will helps protect your possessions and assets from the government, and protects your family’s rights. Without a will, your family could find itself in a messy legal battle. With a big chunk going to the lawyer.

#3: Refinancing as your new way of life.

Too many people rely on refinancing to cover up their financial mistakes. But refinancing is your worst option, since it sets the clock back to the beginning of your mortgage again. Where you’re paying the most in interest every month.

#4: No emergency fund to cover the unexpected.

It’s usually those unexpected costs that can send chills up your spine, if you’re not prepared. If expenses come up in your life, you’ll have to pay them anyway. You may as well be prepared in this event. So you don’t have to go through all the stress.

#5: Not investing in your retirement plan consistently.

Your retirement fund will only help you out later in life, when there’s a substantial amount of money there. Skimping on your retirement fund payments now, will set you up for heartache and financial troubles later. Don’t put it off… make payments to your account on a consistent basis.

#6: Carrying debt for an extended period of time.

Debt is the one thing that will give anyone nightmares. Especially if you carry a lot of debt from month to month to month.

Your life will be much easier and more enjoyable when you don’t have that black cloud over your head. Make a plan to pay down that debt as fast as you can. And your financial nightmares will go away for good.

#7: Using your bank’s overdraft service as your personal ATM.

If you have “overdraft protection” from your bank, you have a bit of a cushion, in case you accidentally write a check or withdraw from an ATM when you don’t have the funds to cover it.

Some people get into the bad habit of using this service as their personal ATM, that gives them money whether they have the funds in the account or not.

Avoiding this dangerous practice will prevent you from digging a financial hole you may find it difficult to get out of. And save you a lot of money not paying the overdraft fees your bank charges every time you use this service.

As always, I’m here to help you practice smart habits when it comes to your money, and avoid the dangerous habits!

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