Financial Experts Say These Tips Will Help You Avoid Money Mistakes

Inflation might be tracking in the right direction, but debt is sky high for millions of Americans and the economic future remains murky at best. So if you’re wondering how to take control of your financial situation, keep reading for a few rules to live by.

Don’t confuse loans with gifts

When borrowing from a lender or purchasing on credit, it’s easy (at least at first) to ignore the harsh reality that it all has to be paid back. If you need a loan to make ends meet or carry out a substantial purchase, that’s OK. But before you sign on the dotted line, make sure you’ve done sufficient research not only to find the best rate possible, but also to fully understand what it will take to repay it in full.

Be cautious about cosigning

In the interest of helping out a friend or family member, it might be tempting to cosign for someone else’s loan. But doing so both risks your credit while putting you on the hook to repay the debt if the person who initially borrowed it does not. Instead of cosigning, consider helping that other person search for a reasonable loan that can help improve his or her credit.

Make sure you’re gaining interest

Traditional savings accounts at big banks have almost become a joke at this point, often offering practically no interest. But if you’re looking to park your cash somewhere that it will yield some return, check out some smaller banks or credit unions. Many of them can provide accounts with interest rates as high as 5% or more.

Along with living within your means and avoiding the temptation to invest in something that could turn out to be a fad, the tips above can help you achieve a more secure financial future

Chris Agee August 16th, 2024

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