Things That Financially Sensible People DON’T Do
There is so much financial information about there these days regarding the things that you should do – how you should spend your money, where you should save it etc. Well, in this article, we are going to take a closer look at a few of the things NOT to do. Sometimes, it helps to look at things from this perspective so you can be more aware of any mistakes that you may be making yourself. So, here they are.
They Don’t Lease Cars
From a financial point of view, leasing a car doesn’t make sense. The companies try to suck you in with low monthly lease rates, but these are usually a mask to the higher long-term costs that you are likely to have to pay. Also, you should be aware that you lost 35-40% of the value of a new car from the moment you drive it off the forecourt. Therefore, a quality used car is always going to be the best option.
They Don’t Buy New Technology Immediately
Technology companies work hard in marketing the features of their latest product, but they are rarely things that you need to buy straight away. New technology always comes with a premium price tag, and it is often untested by the general public – just remember the Samsung Galaxy Note 7. Instead, you are better off buying items that are a little bit behind the times for a much cheaper rate.
They Don’t Ignore Savings/Investment Opportunities
Financially savvy people make the most of any savings and investment opportunities they can utilise. For example, they pay as much as possible into their pension fund knowing that their employer will match their contribution. They seek out the best interest rate that they can obtain for their savings and diversify their portfolio, taking the chance to buy silver coins and other similar investments. And they always to increase their knowledge and discover more about how they can better make their money work.
They Don’t Go for Instant Gratification
Today’s world is one that is very much about instant gratification, but financially savvy people don’t immediately indulge their desires. They take the time to calculate how much an item costs, where they can get the best deal for it, and how long it will take them to save for it. The advertising industry is one that encourages impulse buying, but financially sensible people are the ones who can see through them.
They Don’t Delay Maintenance
Financially savvy people are the ones who take care of their things, particularly the bigger purchases. They do the basics on their cars like changing the oil and rotating the tyres. They don’t let problems mount up and cost them significantly like not fixing a dripping tap straight away. They generally take care of the items that they decide to invest in.
Hopefully, after reading through this article, you have gotten a much better idea of some of the things that financially sensible people avoid so you can also not make the same errors.