14 Terrible Financial Ideas: Money Experts Say You Should Never Do These

Buying a Sports Car

Don’t buy that old European sports car you’ve dreamed of since you were a kid. Even though you can finally afford it, trust me, you can’t afford the repairs.

That 401(k) Loan Will Cost You

If you think that you can pay off a 401(k) loan over time after leaving a job, think again. It depends on your employer, but you may have to pay it back immediately.

Forgetting to Outsource

Our most valuable resource is time, but well-intentioned people often waste time doing things they don’t like or aren’t good at to save a few bucks.

Don’t Loan Money to Family

We’ve all been there. A friend or family member needs money and asks you for a loan. You want to help, especially if it’s someone you’re close to. However, the time to decide how much you can float them is not in the middle of their crises. (Read the article to find out why.)

Avoid Retiring Without 1 Year of Savings

You will be extremely nervous when the market crashes without one year of cash set aside. With one-year cash reserves, you have enough to stop distributions from your investments and wait out the market storms.

Money Sitting Idle is Worthless

Your money should be invested in different asset classes depending on your goals and overall plan. Besides maintaining an emergency account, there is no reason to let your money sit idle. Stocks, bonds, real estate, or any cash-flowing investment are all good options.

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