Five Ways to Ruin Your Financial Life

Many of times we don’t consider the everyday aspects of life and how they may impact our finances. There are major mistakes that people make all the time that jeopardize their financial careers. Here are five mistakes that are easily avoidable:

  • Excessive spending and debt – Many people use credit cards to pay for items they cannot really afford. Most of the time, people don’t pay off the bill promptly, so the debt continues to grow. Instead of purchasing an expensive item on your credit card, use cash or a debit card so the money comes directly from your account. This will limit your spending but also avoid accruing debt.
  • Being a bad employee – Your career is most important when it comes to your financial life. You can easily ruin this by establishing a bad reputation around the workplace either through laziness, dishonesty, immaturity, and so on. The point is, if people perceive you as a bad employee, you will not receive raises, promotions, or rewarding work. Also, an employment history with multiple jobs and a lack of upward progress could mean signs of a bad employee to a hiring company.
  • Crime – A criminal record is one way to ruin your financial future. It could deny you qualification to loans, employment, security clearance, and admission to schools. The best advice is to stay out of trouble! If you do have a little bit of a criminal record, all you can do is be honest about your mistakes accept that there may be long-term consequences. When you are given the chance, do everything you can to prove that you are trustworthy and reliable.
  • An unplanned family – Raising a family is a reward but it is quite expensive, especially those who aren’t prepared for a new addition. The average cost of raising a child can cost anywhere from $6,000 to over $10,000 a year! This could be quite a problem for those who are still paying off loans or in the early stages of a career. Not only is the cost a huge factor, but having an unexpected child will limit your time at work, lose educational opportunities, and reduce the amount of savings for retirement.
  • Insurance – Make sure your insurance plan is adequate. Every year around the US there is disastrous flooding, meaning some homeowners are left facing massive amounts of debt because they didn’t purchase a flood policy. You may also want to consider adding an insurance policy for guests, workers, and even trespassers. You could face multiple lawsuits or have to pay out of pocket for these people if they injure themselves on your property.

Remember that all of these factors that cripple your financial life are easily avoidable. Take the time to consider these five situations and apply them to your life! For the entire article from msnbc.com, please click here.

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2 Comments Add yours

  1. Robyn says:

    Who knew living could cause such detriment to your financial well being. But it totally can!! Debt, bad employment history, children, and even insurance can play a bad hand in sculpting your financial prowess. Of course all of these situations are avoidable. But what happens when they become a part of your life and there is absolutely nothing you can do about it? I believe life can be tough, but it is doable. Having children without a plan to financially provide for them is tough, but it is doable. Accumalating a lot of debt is tough and an even tougher situation to get out of, but it is doable. The important thing is that you recognize that life is doable and then get to doing it. Create plans that will better help your situations and not keep you on a continual spiral into a financial abysmal. For me and my son, that is what I plan to do.

  2. Jewel says:

    I do agree that an unplanned family can ruin your life financially. However, that’s only if you let it. I had an unplanned family during my junior year in college. I had two children that were 14 months apart. This made it very difficult for me financially and academically. I took a break for two semesters to take care of the kids. I went back to school and changed my major. This added additional time to my curriculum. I found ways to save money because I had no choice. I would shop at thrift stores and garage sales for different things. This is how I was able to buy their clothes. I would also catch the sales at the stores and buy ahead of time. By doing this, I was able to have an emergency fund and remain stress free. I could then put my energy into finishing school without having to worry about everything else.

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