Never spend money on things you’ll never use
You’ll always find things to spend your money on but ask yourself this: do you really need all of them? or at least ten percent of the items you see on sale? If the answer is no, then you know what you need to do: stop wasting money on things you will never use.
“It’s mind-boggling the amount of money people waste on things they neither need nor use,” said Elledge. “Whether it’s buying a fancy phone they have no idea how to use, buying an extended warranty on a product that already comes with a warranty, or even purchasing clothes they forgot are sitting in the closet at home, it’s wasteful spending.” See also Spring Cleaning Your Finances? Here’s What You Should Never Do.
Never risk money you can’t afford to lose
Investments can offer you a chance of big rewards. But they also come with certain risks that not everyone is willing or able to take. Investment rule number one: if you can’t afford the risk, don’t play!
“Every investment carries a level of risk, and you should be prepared to face the worst-case scenario every time,” said Pauline Paquin, personal finance expert and founder of the website Reach Financial Independence. “Do not invest money that would compromise your financial wellbeing if you lost it … One financial mistake can be devastating.” Check also 10 Money Mistakes You’re Making, According to Financial Experts.
