Building a steady and stable reserve of savings is difficult. Efforts in your career, good financial sense as well as a firm discipline related to your spending will all contribute to building a financial backbone that can help you out of emergency circumstances or can be saved for a large positive investment later. However, this can all sound pretty idealistic. While blogs like ours are concerned with helping you maximise your financial wisdom, it would be neglectful to pretend that there aren’t a million methods of having your money separated from you. These ‘money traps’ (as we will come to call them,) can prevent you from meeting your saving goals, and too many of these can completely wipe your finances or even get you into debt.
While financial wisdom is often preventative, sometimes you can find yourself in a spiral of issues which demand a solution instead. For example, debt ramping up is never solved by hindsight, but with strong debt consolidation services such as those found at debtconsolidationprograms.co. However, to prevent yourself from ever getting to that state, we would recommend the following advice:
We’ve all needed a little bit of extra financial padding from one week to another, particularly in our youth. Sometimes the income we have just doesn’t cut it. For the most part however, it’s important to understand that lending money to anyone, even your friends, can be a big risk. Only lend money to friends you are absolutely sure about, and even then, lend with caution. Never give more than you reasonably can afford to.
Never take a payday loan in the name of someone else. Never allow it to occur multiple times. Always be firm about your terms, and when you expect the debt to be settled. Never lend to friends you have only just made or people who you’d like to impress or get on the good side of. With all the effort it takes to earn the money you have, it’s not a flaw to protect it. Also, never be afraid to say ‘no.’ You are an adult, and you have the right to dictate the terms of your living. If someone emotionally pressures you into giving, that’s a good sign they are not worthy of it.
While payday loans can be a great way to cover costs in a really tight pinch, relying on them is completely neglectful, and you should never get into this habit. Making sure that you keep away from these, and take any other measures you can with payday loans as your last resort, can help stop you from falling into the trap. Often, the interest you must pay back, even on a short-term loan, doesn’t warrant the cost of your loan terms. These loans will usually dress themselves up as wholly affordable, or rational to use regularly, but all of this is merely marketing. Without the correct method of care, your finances are easily led down this money trap, and the effects can quickly culminate.
Avoiding these small considerations can help you tremendously. Exercise a little restraint, and you’ll see for yourself with peace of mind and a thicker wallet!