Don’t burn yourself financially with bad financial mistakes. I’ve made some, and if I had just been more diligent and attentive I could have avoided them.
I recently was reading a post by Tortoise Banker about Protecting Your A$$ets and Income and he truly inspired this post.
Being Uninsured
In any regard. Having no car insurance is illegal and is pretty much a grievous sin in the eyes of the god of Americans.
Having no health insurance can be an even worse proposition. I don’t know how we came to a place that a trip to the hospital can bankrupt someone, but we’re there.
It’s inevitable we are going to get sick or hurt. Be protected, not just physically but financially as well.
Not Having Enough Insurance
When we’re talking about cars, of course you should get comprehensive insurance. Unless you’re driving a piece of trash you’re not worried about losing (more on clunkers below!).
How much health insurance should you get?
A few years ago I got mono. The illness that knocks you out for weeks or months of sickness. It was horrible. So bad I was admitted to the hospital for 5 days.
I had signed up for the cheapest health insurance with my employer. My PPO covered 70% of the costs, which is great. But if I had been paying more per month, they would have covered 80% and the deductible would have been lower. I could have saved a few thousand dollars. In hindsight, I wish I had paid more monthly for greater financial protection.
Pouring Cash Into a Clunker
I know conventional wisdom seems to point to driving the car you own into the ground. I contend that once you’re paying to replace the transmission and other major work, it’s time to get rid of that junk heap.
In fact, try to sell it a while before then! The thousands you’ll spend maintaining a piece of garbage is wasted money. You could have taken that money and put it down on a newer car.
Should you buy new or used? Click here to see the pros and cons of buying a new or used car.
Getting Married More Than Once
I’d never encourage anyone to stay in an abusive relationship. But getting divorced is pricey. And to get married more than once? Ouch! Spending on two weddings and more than one wedding ring is not usually a fiscally sound proposition.
If you’ve been married more than once, do you have any financial tips on making it through? It’s actually a subject I’ve not seen anyone else write on.
Co-Signing a Loan
Many loans need co-signers. It’s part of the process. But co-signing with the wrong person can poison you.
Unless the person is someone you know and fully trust their integrity, financial wits, and emotional stability, DO NOT co-sign with them. Especially a family member.
It might seem that you can trust a family member more than a friend. But a family member is a little more likely to feel like there will be less consequence if they don’t follow through with someone.
I’m not saying to not support your niece or a cousin. But unless they are a completely sound person, don’t do it. It could hurt your finances, your credit score, and your relationship.
Don’t Drink The Kool-Aid
Sound-off below on any poisonous anti-financial advice you have!
[Featured image by Christopher Porter]
[Dodge Charger image courtesy of Ivan Afandi]
