Small Decisions that Can Lead to Financial Ruin

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Posted on 03/19/2014

Financial ruin doesn't always happen overnight. It can take months or years to end up in a place where foreclosure is imminent and bankruptcy seems like the only way out. It's often the small, sometimes daily decisions we make that can put us in a bad financial position.

Not Paying Attention to Small Purchases
A latte here, a fast food lunch there. None of it seems to have much consequence until you pay attention to all of it. Those small purchases can actually add up to a big financial misstep when squandered.


Playing Games with Money
What happens in Vegas stays in Vegas, right? Unless of course what happens in Vegas is you lose a whole lot of money and can't make your mortgage payment next month. Loosening the reins for a fun weekend with friends may seem harmless, but if you open your wallet too wide you may end up with nothing left inside.


Not Organizing Bills
Tossing a bill into a junk drawer is a split second decision that can cause major headaches down the road. It begins with a late fee or a disconnection charge. Soon you may find yourself behind on a payment or unable to catch up. Choose to stay organized with an easy-to-use filing system.


Watching Too Much TV
Could TV be preventing you from reaching your financial goals? Possibly, according to RichHabitsInstitute.com. The site says 67 percent of wealthy watch one hour or less of TV a day compared to 23 percent of the poor. When it comes to reality TV, 6 percent of wealthy watch while more than three in four of the poor tune in.


Loaning Money You Don't Have
If a friend or family member came to you for help, you'd likely feel obligated to loan them some cash. But when their promise to pay it back falls through and you need the funds, you'll probably have a broken relationship and a loan that never gets repaid.


By Alison Storm


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