September 9, 2008

How to ruin your financial security

Being financially secure is one of those things that you can have one day and lose it the next, it is a fine line that we all tread for most of our life.

The simple fact is that it is far easier to get into debt than it is to get out of debt. So it has to be a good thing if we look at the causes of debt, this should help you see the dangers before they happen and avoid getting into debt.

In order to see how easy it is to end up in a terrible financial state, the points below are not an exaggeration of things; it really can happen to virtually anyone fast.

What not to do:
Buy everything, yes, everything
Charge all purchases
Do not be concerned about retirement
Buy a £2 million home, with 1% down, and a 30-year mortgage
Start being frugal ‘tomorrow’

Source [Personal Finance Information]