43 ways to ruin your finances by age 30
source: http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1751999
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It wasn't until I reached 30 that I started to turn my own financial life around. Unfortunately, by then, the damage was done. In retrospect, I often knew the decisions I was making were not so smart, but I made them anyway because I could always "pay it off later" or "just save more money when I'm older."
One of the cruel facts of life is that it gets more difficult the older you become.
Hopefully, my sharing a few of these bad money moves will prevent others from doing the same. And don’t worry: If you are over 30 and still doing these things, it is never too late to start living frugally.
* Take out three times as much in student loans as your first year's salary. I'm all for following your passions, but if your passion pays $35,000 a year, please reconsider borrowing $100k to get the required degree.
* Trash your college enemies on Facebook and Twitter. It might be funny now, but your future boss probably won’t see the humor in it. Remember, the Web is an open book, and down the line things you say online can and will be used against you.
* Trash yourself on Facebook and Twitter. The picture of you half-naked and partying on the beach at spring break will probably get you a few more followers, but remember that future boss?
* Go to school out of state because you like the football team. I included this one because I did it. Well, sort of. I thought I could walk on for my favorite school's football team, forgoing scholarship opportunities in-state.
* Just get a degree . . . in anything. Don't "just get a degree" for the sake of getting a degree. Learn something, and prepare to apply it in the real world.
* Accept a job you hate right out of school because it pays a lot. Many graduates are so saddled with debt that they think they have little choice but to go after the biggest salary, even if it isn't the best opportunity.
* Form a partnership with three fraternity brothers from college. It's been said the only type of ship that won't float is a partnership. Let the one with the most capital start the business and hire the two others. It's much cleaner, and if the business fails, you can all walk away and still be friends.
* Borrow thousands to start a new business. Entrepreneurship is the spirit that built this country, and I'm all for it. But you should consider saving and starting up with cash.
* Accept your first job offer without negotiating. A little wiggle room often exists in salary ranges, schedule flexibility, paid days off, etc., but you have to ask.
* Spend $2,000 on your new corporate wardrobe before getting your first check. This is one of the classic mistakes by new earners. Buy a couple nice outfits for interviews and your first day on the job, but beyond that, make do with what you’ve got.
The borrower is a slave to the lender
* Co-sign a car loan for your best friend. I no longer borrow money to buy cars. And I especially wouldn’t borrow money to buy someone else a car. As a co-signer, you are on the hook if your friend defaults. And if he needs a co-signer, there's a good chance he will.
* Give up credit virginity for a free T-shirt. When I was in college, I signed up for a Discover card because the company was giving away free T-shirts. Dumb. My running joke is the T-shirt probably cost me $500 in interest over the next few years.
* Borrow money from your parents. Not only does it change the relationship between parents and kids, it also makes it tough to declare financial independence when you constantly have to turn to the Bank of Mom and Dad.
* Pay off a credit card with a credit card, without retiring one of them. A balance transfer from a high-interest credit card to a low-interest one makes sense in the short run -- unless you keep using both cards.
A car won't make you sexier
* Buy a car because you can "afford the payments." Ever wonder why car dealers advertise the cost of a car in monthly payments? Writing $32,000 in window paint isn’t quite as catchy as $379 a month (for 60 months with a balloon payment at the end).
* Drive like an idiot. It's hard to save money on car insurance when you are collecting traffic tickets right and left. Not to mention the hit you'll take on gas mileage.
* Refuse to buy a used car because you don’t want someone else's problem. This tired saying keeps coming up in discussions on used cars. A car transforms from new to used the second it leaves the car lot. A well-maintained, previously owned car can save you thousands of dollars over a new model.
* Buy a new car because it gets better gas mileage. In most cases, you'd have to drive thousands and thousands of miles to break even. Buy a car for better gas mileage only if you already planned to buy another car.
* Don’t shop for car insurance. No, seriously, take the first offer you get. That will save you tons of money.
READ MORE HERE:http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1751999
One of the cruel facts of life is that it gets more difficult the older you become.
Hopefully, my sharing a few of these bad money moves will prevent others from doing the same. And don’t worry: If you are over 30 and still doing these things, it is never too late to start living frugally.
* Take out three times as much in student loans as your first year's salary. I'm all for following your passions, but if your passion pays $35,000 a year, please reconsider borrowing $100k to get the required degree.
* Trash your college enemies on Facebook and Twitter. It might be funny now, but your future boss probably won’t see the humor in it. Remember, the Web is an open book, and down the line things you say online can and will be used against you.
* Trash yourself on Facebook and Twitter. The picture of you half-naked and partying on the beach at spring break will probably get you a few more followers, but remember that future boss?
* Go to school out of state because you like the football team. I included this one because I did it. Well, sort of. I thought I could walk on for my favorite school's football team, forgoing scholarship opportunities in-state.
* Just get a degree . . . in anything. Don't "just get a degree" for the sake of getting a degree. Learn something, and prepare to apply it in the real world.
* Accept a job you hate right out of school because it pays a lot. Many graduates are so saddled with debt that they think they have little choice but to go after the biggest salary, even if it isn't the best opportunity.
* Form a partnership with three fraternity brothers from college. It's been said the only type of ship that won't float is a partnership. Let the one with the most capital start the business and hire the two others. It's much cleaner, and if the business fails, you can all walk away and still be friends.
* Borrow thousands to start a new business. Entrepreneurship is the spirit that built this country, and I'm all for it. But you should consider saving and starting up with cash.
* Accept your first job offer without negotiating. A little wiggle room often exists in salary ranges, schedule flexibility, paid days off, etc., but you have to ask.
* Spend $2,000 on your new corporate wardrobe before getting your first check. This is one of the classic mistakes by new earners. Buy a couple nice outfits for interviews and your first day on the job, but beyond that, make do with what you’ve got.
The borrower is a slave to the lender
* Co-sign a car loan for your best friend. I no longer borrow money to buy cars. And I especially wouldn’t borrow money to buy someone else a car. As a co-signer, you are on the hook if your friend defaults. And if he needs a co-signer, there's a good chance he will.
* Give up credit virginity for a free T-shirt. When I was in college, I signed up for a Discover card because the company was giving away free T-shirts. Dumb. My running joke is the T-shirt probably cost me $500 in interest over the next few years.
* Borrow money from your parents. Not only does it change the relationship between parents and kids, it also makes it tough to declare financial independence when you constantly have to turn to the Bank of Mom and Dad.
* Pay off a credit card with a credit card, without retiring one of them. A balance transfer from a high-interest credit card to a low-interest one makes sense in the short run -- unless you keep using both cards.
A car won't make you sexier
* Buy a car because you can "afford the payments." Ever wonder why car dealers advertise the cost of a car in monthly payments? Writing $32,000 in window paint isn’t quite as catchy as $379 a month (for 60 months with a balloon payment at the end).
* Drive like an idiot. It's hard to save money on car insurance when you are collecting traffic tickets right and left. Not to mention the hit you'll take on gas mileage.
* Refuse to buy a used car because you don’t want someone else's problem. This tired saying keeps coming up in discussions on used cars. A car transforms from new to used the second it leaves the car lot. A well-maintained, previously owned car can save you thousands of dollars over a new model.
* Buy a new car because it gets better gas mileage. In most cases, you'd have to drive thousands and thousands of miles to break even. Buy a car for better gas mileage only if you already planned to buy another car.
* Don’t shop for car insurance. No, seriously, take the first offer you get. That will save you tons of money.
READ MORE HERE:http://articles.moneycentral.msn.com/SmartSpending/blog/page.aspx?post=1751999
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