Day 12: Be Sure
Before you make a personal finance-related decision, be sure that you understand the full impact of the decision you are about to make. Years ago, before I worried about things like gas mileage, interest rates, and credit scores, I financed the purchase of an SUV. It was a beautiful SUV – deep blue paint job, soft interior, awesome sound system – it was the coolest thing ever. The problem was, I made one of those “if everything goes right I can afford it” purchases. So, for the next two years, I worried about every single payment, until finally, I managed to sell my nice SUV and replace it with the car I now own. Of course, when I went to sell it, I was “upside-down” and I had to finance my car for more than it was worth. I pushed my debt from one vehicle to the other.
Sound familiar? I am sure, that for most of you, it does. So, instead of rushing headlong into ANY financial decision, be sure that you take into account “what could happen” and “what might happen”. I am not trying to scare you into never spending any money, but I am reminding you to be aware of future possibilities. In my experience, when I planned for the “perfect, nothing will go wrong” scenario, I got burned. Be reasonable, live below you means, and think about each and every financial decision.
Have you ever made a poor financial decision? Leave a comment and let us know. If you are a blogger, write a post about making decisions and contact me. Iâ€™ll be more than happy to link to your post.