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These Financial Traps Could Set You Back in 2019

financial-trap-mousetrap

Even if you’re happy with your financial situation and the way you’re managing your money, you never know what the future will bring. It only takes one mistake or misstep to find yourself heading down the wrong path.

With so many financial traps lurking, it’s imperative to think long and hard about every money move you make. Here are five traps to keep out of your life in 2019:

1. Taking Money From Your Retirement Savings

Yes, this is possible. In fact, it’s pretty easy in many situations. However, if you take money from your retirement savings today, you’ll come to regret it in the future (when you finally want to hang up your work boots).

2. Payday Loans

The marketing messages are appealing. Get the money you need today, without delay. Sounds great, right? Until you realize that payday loans carry an ultra-high interest rate.

If you want to borrow money, find a more legitimate way of doing so. From a personal loan to a credit card, there are other ideas that make more sense.

3. Car Lease

There are times when this may suit your finances and driving style, however, you need to strongly consider the pros and cons before you go down this path. When you lease a vehicle, you’re not working toward paying it off. Subsequently, you get into the trap of always having a car payment.

4. Adjustable Rate Mortgage

Even though adjustable rate mortgages aren’t as common as they were 10 or 15 years ago, many people are still tempted by the lower upfront interest rate. The problem with this is that your rate will increase in the future, and when it does your payment will follow suit.

5. Timeshare

Everyone loves to take a nice vacation. Why not purchase a timeshare so you can get away more often?

There are many issues with timeshares, including the fact that you can’t use the property any time you want. Furthermore, they’re often more expensive over the long run than simply purchasing a property. Add in the fact that reselling a timeshare is a near impossibility, and it’s best to stay away from this altogether.

What are your thoughts on these financial traps? Will you avoid them in 2019?

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Comments 1

Frank on Tuesday, 29 January 2019 16:20

I would add:

(1) Investing in Bitcoin/cryptocurrencies
(2) not paying off your credit card every month.

I would add: (1) Investing in Bitcoin/cryptocurrencies (2) not paying off your credit card every month.
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Thursday, 27 June 2019

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