We all know that finance isn’t the most exciting topic for a lot of people, but it’s important to learn about it in order to have a better understanding of our personal finances like bright word whizzle. From what is considered to be the 8 unforgivable sins of finance, we will give you a brief overview and break down some of the reasons why these practices are something that should be avoided.
1. Taking Advantage Of Others
Taking advantage of someone is a very common practice, but it’s not something that should be done. Whether it’s someone who is younger than you, who isn’t as knowledgeable about the particular situation you are in, or who seems to be in a vulnerable position. There is no justification for this kind of taking advantage of another person financially.
2. Borrowing More Than You Owe
Borrowing more than you owe is one of the most common and important sins of finance that people seem to miss on a regular basis. It’s important to know how much you have borrowed versus how much you owe. This will help you determine how much more debt you can handle and how it will impact the rest of your credit score.
3. Borrowing Money Without Interest
Especially borrowing money without interest when you are already in debt. There is no point in this, because if you are already in debt and struggling to pay off your credit cards every month, it’s not going to change anything if you take out a loan. There is a common misconception that borrowing money without interest is a good thing, but in reality, it’s more of a bad practice than anything else.
4. Spending More Than You Make
In the ideal world, we would never spend more than what we make. It will cause financial stress down the road and it’s something that you shouldn’t do unless you have to. This one should be an obvious sin of finance, but there are still many people who do this on a regular basis without realizing it or thinking about the long-term impact that it might have on them.
5. Poor Money Management With Credit Cards
There are some people who think that because they do not carry a balance on their credit cards, it’s okay to spend more than they spend. But, if you regularly run a credit card balance, then this is not the best option for you. With credit cards, the biggest sin that is committed is poor money management. It’s important to pay off your bills and set up a payment plan that works for you and your financial situation.
6. Tapping Into Retirement/Investment Accounts Early
On top of a life of poor money management with credit cards, the second biggest sin of finance is tapping into your retirement or investment accounts early. Although it may seem like a good idea to tap into some of your accounts early, it’s never really a good idea to do this. You could be facing some very steep penalties if you are caught doing this, so it’s not something that should be done if at all possible.
7. Not Saving Enough
Most of us know that we should be saving, but it’s not something that we really do on a regular basis. It’s important to put aside money for emergencies and unexpected bills. This is one of the sins that people don’t seem to realize they are committing. This one is obviously linked to the sin of spending more than you make, but it’s important to save at least a little bit of your money each and every month. This can be done by setting up automatic account deposits so that the money is taken out of your paycheck each month and deposited straight into your savings account.
8. Lying About Your Finances (Fake It Til You Make It)
This one could fall under the sin of lying or being deceitful, but it’s really a lot like faking it until you make it. There are many people who lie about their finances to not have to tell the truth, and it’s no better way to avoid telling the truth.
All of these sins of finance aren’t something that we should be doing. The best thing that we could do is learn about what is considered to be the 8 unforgivable sins of finance and avoid them at all costs. You can always choose from the list above if you do fall into one of these categories or find another way to fix this issue if you don’t fall into any of those categories.
Never forget , you are a free man , so don’t be afraid to express your true feelings and opinions.
Get Free Email Updates! Enter your email address to receive updates from this site. Be warned, be prepared, and have a plan of action if you are in debt. If you are feeling guilty or overwhelmed by the amount of credit card debt that you have acquired, pay it off as fast as possible. The above list is always changed , any changes will be issued if you follow it.