Sometimes people make life choices that end up negatively affecting them in their future. Life doesn’t always make things easy and when things get difficult, it can be difficult to make a good choice. Unfortunately, we live in a society where so much depends on money and financial security that the life choices you make can can have a large negative effect on your finances. Listed below are a number of life choices that you want to avoid if possible since making them will likely leave you a lot poorer.
Quitting Your Job Without Another Lined Up
A lot of people wish they could quit their jobs without a second thought. If you have a job that is aggravating you to the point of quitting, think twice if you don’t have a backup plan. We live in such a poor economy that quitting without another job lined up or without another source of income will end up hurting your finances in the long run. After all, you don’t know how long it may take you to find another job.
Staying in a Dead End Job
While this is a difficult economy and many people take jobs they’re under qualified for, staying in a dead-end job can also hurt your finances. If you know that you’re worth a better job with a higher pay, you’re only hurting by staying in a job that will never give you the pay or recognition you deserve. Of course, there may be other factors making you stay in that job such as bills to pay or a family to support. But instead of just going through the motions and dealing with it, think about also searching for a better, higher paying job to improve your finances instead of keeping them stagnant.
Buying a House You Can’t Afford
A lot of people believe that they need a gigantic, luxurious house and will take out a mortgage that they can never realistically pay back. Choosing to buy a house that you know you can’t afford can hurt your finances down the road. What happens when you have to default on the mortgage? Or what happens when you can’t pay to maintain the house? Choosing to live beyond your means is never a good thing.
Taking Out Massive Loans for College
Most people who have been to college in the past decade are tired of the debate over college loans. On one hand, everyone says that you can’t get a good job without a college degree. But on the other hand, taking out massive loans will push you into a gigantic pool of student debt that you may never be able to pay off. You don’t want to become a slave to college loans. If possible, see what other alternatives there are such as a cheaper college, any financial aid options, or scholarships to help lighten the load somewhat.
Graduate school can be a curse and a blessing. For one, it can help you become an expert in your chosen career or academic field which will only make you more marketable. However, there are a lot of people who have only gone back to grad school because they couldn’t find a job. If you choose to go back to grad school and can’t get financial aid or funding, you might be dooming yourself to an even larger pile of debt once you graduate.
Having an Expensive Wedding
Weddings are supposed to be happy event, so the last thing you want to do is saddle yourself with outrageously high bills just to celebrate one day. A lot of people seem to believe that they need an expensive wedding to commemorate their special day. Except they forget that they might not be able to afford that wedding or may be paying off wedding bills for years. Don’t make the mistake of planning and hosting a wedding that negatively affects your finances. A wedding is great, but you want to make sure you have money that you and your spouse can use to start your life together.
Divorce is an unfortunate event, but sometimes it’s inevitable. Before you go through with a divorce, you should be aware of how it will negatively affect your finances. Even an amicable divorce is going to cost both parties money. If it’s nasty, it can cost a small fortune. At a minimum you’ll have to pay for lawyers, the division of assets and child support.
Not Getting Insurance
There are a lot of people who make the conscious decision not to buy insurance for their homes, cars, or heath. While some people do go overboard when buying insurance, not buying insurance could hurt you sometime in the future. What happens if you have a medical emergency and have to pay full price? What happens if a natural disaster destroys your home and you can’t afford to fix it? Attempting to rectify problems that could have been covered by insurance could deplete your finances.
Being Convicted of a Felony
While being convicted of a felony isn’t a choice, the act of committing one and putting yourself in that position to be convicted is one. Being convicted of a felony has the potential to hurt your finances in a variety of ways. If you’re looking to go back to school, you may have difficulty getting student loans. Or you might have difficulty obtaining a credit card or loan from a bank. While there may be ways to get around this, getting that loan or financial stability may be harder than normal.
Buying Status Symbols
Buying status symbols to make yourself appear richer or keep up with friends or family who are in a higher income bracket is a poor life decision that will negatively impact your finances. As stated above, it’s never wise to live beyond your means. Choosing to buy an expensive car or home to seem richer or to try to keep up with the Joneses is just a foolish decision.
(Photo courtesy of McKay Savage)