Top 5 Ways People Waste Money
Posted in Lifestyle, Money by George
The Common Sense Investor just posted a list of the Top Five Ways People Waste Money, beyond being shopoholics. The list is actually numbered to six, and is missing number five, but I won’t hold that against the author. I posted a few of my own financial tips on gimme-five a while back (check the comments, too), and they are very related to this list.
The list includes:
- Buying unnecessary insurance.
- Buying warranties that cost as much as the product.
- Paying easily avoided fees.
- Buying after solicitation
- Not maximizing the power of your money
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August 22nd, 2006 at 6:59 pm
My quick tips.
1. Don’t go into debt for anything other than capital investment - either human capital in your own schooling or for increasing your capital assets. In other words, don’t ever go into debt for consumption.
2. Increase your assets that don’t depreciate the minute you buy them. Spend less than you earn.
August 23rd, 2006 at 4:43 pm
Good tips, Lance. Going into credit card debt when it’s simply for purchases you don’t need is not a good idea, and sadly that seems to be one of the top reasons people get into debt.
On that second tip, I’d like to point out that’s a reason not to buy a fancy new car.