9 Fatal Money Traps to Avoid
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It can be easy to fall victim to the 9 common money traps we’ve listed below, but arm yourself with awareness and you’ll be prepared to avoid an ambush.
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1. Falling for “Free”
The allure of free knows no bounds. Even the savviest of consumers can be duped by the offer of a “free” service or product. If you ever find the offer of free oil changes tipping the balance in your decision to buy a car or a free hair dry causing you to consider getting a haircut at a new salon, take a step back. Is it really “free,” or are you being led into buying a product at a premium price that you wouldn’t normally consider?
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2. Sticking With a Loss
It can be difficult to admit to ourselves when we’ve made an error in judgment, and admitting such errors publicly by divesting ourselves of a failed investment or purchase can be even harder. The key is to not make these mishaps personal—they are not a measure of you, but a simple mistake that can be rectified. So if you’ve bought a home that requires renovations above and beyond both what you expected and what you can expect to get a return on, don’t stick with it. Sell and move on.
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3. Buying New
Buying new is both a money trap and a bad habit. Get out of the habit of buying new by recognizing those areas of your life that don’t require brand-new, top-of-the-line purchases. So if you’re looking to buy a set of screwdrivers for the occasional repair around the house, find a quality used set. If you’re not a professional repairperson, you won’t get a return on your investment by buying new.