Not all financial solutions out there are after what is best for you. Some may indeed sound smart but upon closer inspection, don’t seem smart at all. A lot of times, what seems to be the easy way out, may be the cause of your downfall in the long run.
To help you, here is a list of 5 financial solutions that sound smart but are a waste of money:
Getting a life plan, for your kid. Many of these insurance agents point out that getting a life plan for your kid will make you prepared for whatever there is to come.
Yes, the intention’s good, but this is not a smart solution to your worries about your kid’s future. A better alternative is to get a college plan instead.
Having no “fun” fund for you. Hey, everyone deserves a little break, and budgeting is hard enough to do. It wouldn’t hurt to allow yourself to have a little fun, but still within your budget. This might be even better than not spending on leisure at all.
Rather than forcing yourself to save every penny, take a break and spend for something you really want. This way, you still keep your control, than overspending just because your control on your finances just broke loose.
Swearing off credit cards.Many blame credit cards as the reason why they are over their heads with debt. This is partially true, but the real culprit here is the lack of control over their spending. Owning a credit card does not always have to mean being automatically in debt. Just like all things in life, too much of anything is bad, even with credit cards.
A credit card can actually be a good thing when used appropriately, like using it for emergencies and things that you really need but cannot pay in cash as of the moment. It can even do you good by increasing your credit score that is if you always pay on time. The key to using credit cards is to always use it sparingly and wisely.
Using ALL coupons available, even if not needed. Clipping coupons and using them to buy groceries are good habits. But using them to buy things you don’t really need is the opposite. Yes, you may think using all of it is being thrifty, but it is such a waste to buy things that later becomes unused or worst trash.
Getting a long-term insurance policy, when you don’t have enough. Some cannot afford to pay regularly for an insurance that has a long-term payment scheme but still choose to get one.This is smart if you can afford to pay for it. Yet, if you don’t have enough to spare might as well not get one at all. See if your financial status qualifies you for Medicard programs. If you do, then medical and care services will be given to you. Free of charge, so there’s no need for insurance.
Always remember there is no all-in-one solution for every problem.Study and read about it and see if the solution will indeed do you good in the long run.