{"id":1605,"date":"2018-08-21T13:32:17","date_gmt":"2018-08-21T13:32:17","guid":{"rendered":"https:\/\/mitchellagy.com\/?p=1605"},"modified":"2022-05-18T18:26:09","modified_gmt":"2022-05-18T18:26:09","slug":"money-traps-that-can-be-very-costly","status":"publish","type":"post","link":"https:\/\/mitchellagy.com\/money-traps-that-can-be-very-costly\/","title":{"rendered":"Money Traps That Can Be Very Costly"},"content":{"rendered":"

According to Dave Ramsey, a well-known speaker on financial topics, \u201cManaging money is 80% behavior and 20% head knowledge. \u00a0It\u2019s what you do, not what you know.\u201d\u00a0 \u00a0<\/span><\/p>\n

Here are a few money traps that with a little knowledge you can avoid some very costly mistakes.\u00a0 By doing so you\u2019ll be in a stronger financial position and better able to manage through times when money gets tight.<\/span><\/p>\n

You Need a Family Budget<\/strong><\/span>
\nLiving without a budget is a guaranteed recipe for financial disaster. Using the best budget app<\/a> for your money \u2014 no matter how much or how little \u2014 is one of the best things you can do to avoid financial traps.<\/p>\n

When we have a plan we are less likely to spend on items that we really don\u2019t need. \u00a0For some suggestions on how to get started go to Creating a Family Budget<\/a>.<\/p>\n

Avoid Buy Now, Pay Later Purchases<\/strong><\/span>
\n<\/strong>Purchasing items on credit instead of waiting to pay with cash is very tempting when you find something you think you need.\u00a0 This has created financial hardship for many families when they purchase more on credit than they can afford.<\/p>\n

Ask yourself, if you can\u2019t buy it with cash, should you be buying it?\u00a0 There are a couple purchases, homes and vehicles, where it may be necessary to buy on credit, but only to a level that fits into your family budget. If you need some extra cash, playing on sites such as\u00a0\uc628\ub77c\uc778 \uce74\uc9c0\ub178<\/a> might help.<\/p>\n

No Money Down is an Expensive Way to Go<\/strong><\/span>
\n<\/strong>The no-money-down trap is simply another way to get you locked into making long-term payments on items you need to be buying outright. This leads to paying interest charges on a purchase, making the real cost much higher than the original purchase price.<\/p>\n

Acquiring Too Much Credit Card Debt<\/span>
\n<\/strong>Credit cards can make it easy to spend beyond your budget and create financial hardship.\u00a0 Here are some common mistakes that need to be avoided.<\/p>\n