6 Decisions you will live to regret

There are many decisions in life that you will live to regret ever having made.  Here is a list of 6 financial decisions that will chew you and spit you out.

Consistently Paying Minimum Balance.

This simply allows your debt to grow larger and over time make the debt unsustainable. (Read more about this)

Late Payments.

I learned this lesson the hard way.  Most credit institutions have a late payment penalty policy which allows them to add additional fees or interest to the outstanding amount due by you, if they receive your payment after a certain date.  The problem is that most companies do not use the end of a calendar month to close their books and any payments received after their close off date is generally considered late and their programs simply add the penalties to your account.

Living above your means.

To most people this sounds obvious, however, statistic prove that most people don’t live according to the obvious.  Statistics show that in Western countries 71% of the average persons monthly income goes towards paying debt.  This means that most people are living today on tomorrow’s money and if this is true, what are people going to do tomorrow?

Relying on the company or government retirement plan.

I remember many years ago, my grandfather retiring after 40 years of working for the same gold mine and all he received was a gold watch, a firm handshake and an annuity.  That was just above borderline poverty level.  When he enquired why his pension was so alone, he was told that markets have performed badly in the five years leading up to his retirement.  His only option at the age of 65 was to find another job to supplement his pension.  Most people don’t understand that providing for retirement is their responsibility and not the responsibility of the company they work for, and most definitely not the responsibility of any government.

Buying the latest gadget.

It amazed me recently to watch the lines of people waiting to buy the latest iPhone on the day of its launch.  I was even more amused when I heard the response to questions from reporters as to the reasons for waiting in line to buy the new mobile phone.  The majority of people asked said that they wanted to have access to all the great app’s available.  The amazing fact is that less then 10% of people will use more than 20% of the phones ability, and all of the commonly used maps are available on the old iPhone.  The tragedy here is that the majority of people buying the new iPhone were doing so because their friends were doing so and in the process incurred a ridiculous amount of debt.  The sad truth is that this does not only happen with iPhone’s, but with the majority of new gadgets launched on any market.

Being under insured.

One of the worst and most potentially disastrous decisions you can make is to be under insured.  Over many years as a financial adviser, I have dealt with hundreds of people who have been affected by the poor decisions made regarding insurance.  The stories are endless of people live under insured in the short term, and pay the price in the long term.

There are a number of simple things that can be done to help you make appropriate financial decisions that will benefit you and your family now and in the future.

Click on this link to access the free tools available on our website.

Late Payments, under insured, latest gadget