FRIDAY FINANCIAL WELLNESS

SOME OF THE BIGGEST MONEY MISTAKES YOU SHOULD AVOID

❌Never Loan Money to Friends and Family You Can’t Trust

“It is hard to say ‘no’ to friends and family who ask to ‘borrow’ money, but there is very little upside to doing this,” said Kirk Chisholm, a wealth manager with Innovative Advisory Group.

“Sure, you might get your money back, but do you really want to pester them to get it?

The bigger question is, what if they don’t pay you back? Are you OK with saying goodbye to that money?”

Think long and hard before you give your money away to a friend or family member.

Otherwise, in the event that you don’t get your money back, your relationship with them might suffer.

❌ Never Spend Money on Things You Don’t Really Use

“It’s mind-boggling the amount of money people waste on things they neither need nor use,” said Elledge.

“Whether it’s buying a fancy phone they have no idea how to use, buying an extended warranty on a product that already comes with a warranty, or even purchasing groceries they forgot are sitting in the cupboard at home, it’s wasteful spending.”

Instead, Elledge suggested you should stick to buying items you actually need and use on a daily basis, and “you may find a lot more money in your monthly budget.”

❌Never Invest Money You Can’t Afford to Lose

“Every investment carries a level of risk, and you should be prepared to face the worst-case scenario every time,” said Pauline Paquin, personal finance expert and founder of ReachFinancialIndependence.com.

“Do not invest money that would compromise your financial well-being if you lost it … One financial mistake can be devastating.”

❌Never Buy an Investment That Sounds Too Good to Be True

“You should never purchase an investment you do not understand or sounds too good be true,” said Joseph Carbone, a certified financial planner with Focus Planning Group.

“If it sounds boring, then it’s probably a good investment.”

Often times, those too-good-to-be-true investments are expensive and illiquid, he said.

Staple investments — such as stocks, bonds and certificates of deposit — might be better performers.

❌Never Sign a Contract You Don’t Understand

“You can commit yourself financially for a very long time, and at a very high cost, by signing a contract you don’t understand,” said Elledge. “If you don’t understand what you’re committing to, don’t sign.”

It’s a good idea to have an attorney review any contract you’re considering.

And the excuse of wanting your lawyer to review the agreement is always a good way to escape a high-pressure pitch to sign something.


Cheers to your financial wellness

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© Olubusayo Akin-Akinbode
Real estate and Investment Consultant