The 5 Worst Things To Do With Your Money

These are literally the 5 worst things you can do with your money.

1.Buy more house than you can afford

You may want a big house, but don’t buy based on emotion. A house is a place to build memories, not an asset that will automatically appreciate in value. Maybe it will; maybe it won’t. If you find your dream home, make sure you can afford the mortgage payments. Separate the beauty from the cost of the house – they are two different things. One is for you to enjoy; the other you need to pay for.

2. Have credit card debt

Americans owe more than $1 trillion of credit card debt. Even with the most recent rate cut, credit card interest rates are often higher than the interest rates of student loans, auto debt and mortgage debt combined .

If you have credit card debt, and want to lower your interest rate, pay off your debt with a personal loan. You can consolidate your credit card debt into one loan, which is also known as a credit card consolidation loan. Depending on your credit profile, personal loan rates today start as low as 5.99%.

You can use a payoff credit card calculator to calculate how much you can save when you pay off credit card debt with a personal loan.

3. Not start an emergency fund

Whether it’s an unforeseen medical expense, home repair or unemployment, you never know when an emergency will strike. Make the unexpected more expected by building a financial foundation now. That means establishing an emergency fund with at least six to nine months (or more) of cash to cover such unforeseen expenses. Make sure that cash is in a separate bank account that isn’t co-mingled with your living expenses. Don’t access these funds unless there is an emergency.

4. Invest in things you don’t understand

Simply put, if you decide to invest your money, remember this: only invest in things you understand. Don’t invest in a “hot stock” because you read about it online or saw it on TV. Understand what you are buying and assess the underlying risks. Don’t take someone else’s recommendation. Do your own independent research. Warren Buffett invests in stocks and business models that he understands. This doesn’t mean you can’t learn about a new industry or business. Just spend the necessary time to

5. Not refinance your student loans

The latest student loan debt statistics show that 45 million Americans collectively owe $1.6 trillion of student loan debt. The good news: Student loan refinancing just got crazy cheaper, with student loan refinancing rates now as low as 1.99%.

A free student loan refinance calculator shows you how much money you can save when you refinance student loans.

For example, let’s assume you have $100,000 of student loans at a 7% interest rate and 10-year repayment term. If you refinance student loans with a 3.0% interest rate and 10-year repayment term, you would lower your monthly payment by $195 and save $23,457 in total payments. If you are a doctor, dentist or pharmacist with a large student loan balance, your savings may be even higher.

This article was written by Zack Friedman from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network.