Money Traps to Avoid in Life

When you reach a certain age you realize that there are some of the money mistakes that we make. And some of those mistakes are kind of a trap set by other people. And they change our life in general.

In order to move ahead out of those traps, things can get pretty tough to avoid them. If you manage to avoid those traps you won't be losing the money. You would be working towards your growth instead.

So once you understand these traps you would focus more on where to invest your money and not waste it on the wrong things. So in that context we are going to take this discussion.

I'd be very happy if you share some of your own observations regarding the traps that you can see with the money and the various types of stuff that happens in the life. Do post about it in the comments.

Buying Items on Down Payment

If you check some of the ads in the mall. You would find ads apple posts. Like you can pay the installments and then get the apple ipad or macbook etc. And you are kind of locked in for few months on those things.

This is done to keep the people spending into the company products. And the amount of the money that is being invested would make things a bit difficult on the grand scale. I realized this truth a bit late.

I also learned about how buying the stuff on the down payment can lock your future earnings into that item. Which may look good at first but in grand scheme of things you have to work on those items for they may or may not work.

Vacation Homes, Holiday Homes, Timesharing

I feel the time sharing is going to be another waste of time that mostly middle class and rich people are sold onto. Like you get to live free in the time share properties once a year or twice.

You may find that a lot of locations are already booked and often not given to you. And so your money is kind of locked into those things and you would feel like you got cheated. So it's not worth it.

If you have money to spend, make sure to avoid that. Because it may not give you much comfortable position for working and churning to earn forever. So on that context you have to keep thinking as well.

High Interest Rates Investment

I have come across a lot of fake crypto, fake companies, fake banks where they are offering you the interest rate like 60 percent or 70 percent of the investment. And they take your money and run away.

Some of the time such type of the investment is going to make you feel good about yourself. And that means you have to think of your own in context of how you choose to earn the interest rate.

I feel when we are investing into such type of the question comes in you can feel that you are being pulled by the high interest rate. So make sure to properly plan the investment and the interest rates as to move and manage things.

Home Loans/Mortgages in 20s

You may feel like getting your own home in 20s and that could put a trap on your income. You get locked in and may not be able to release yourself through that. Some of the time that means you are not going to get the most things around.

Another thing is that having the loans and the mortgages properly set around would be uncomfortable for you. As you don't get to enjoy the life in general. So in that context you have to learn to live life.

Because you get the life once and it all comes down to how the life is going to be around in that case. So make sure to take loans and properly repay them in the order if you do go for that. But it's better to get house in 30s or onwards.

Lottery

This is something you don't even have to ask. Because lottery is random. As random as you marrying some hollywood celebrity like Tom cruise (if you are a woman) or some other women (if you are a man). So you can get the idea of the lottery.

In order to get the hold of the life in general. Always avoid the gamble of that type. Because it would not take you anywhere. You will only lose in life. There is no good things that would come in sight for that.

What do you think?

Have you come into one of these traps and what is your experience with these traps? How have you managed to avoid these traps? Like have you done anything different to avoid them in general?