You probably already know that there are some things you should not spend your money on. Money is given in exchange for value, but value can also be relative. What’s valuable to Hannah may not be valuable to Annabelle. However, we will talk about general things you shouldn’t spend your own money on, especially if you are on a budget or are trying to manage your debt. There are times you could get carried away, maybe you just got a windfall, and are wondering what you could use your money for. Whether it’s a windfall or your salary, there are some things you should not spend your money on. Let’s get started.

Get-Rich-Quick Schemes

Get-rich-quick schemes will promise to double or triple profits in a very short time. They will tell you there’s no risk so you can invest your money into it. It usually sounds enticing, but you must be cautious. The world is full of scammers, and they will take advantage of vulnerable people who are equally desperate for more money.

Let’s look at an instance. Hannah came across a platform that promised 70% profit on investment within two months. Since Hannah owns $10000 in credit card debt and interest is increasing every day, she decided to opt for this investment scheme. Meanwhile, she could have invested little, but she decided to put all her savings into this scheme so she could have more money to clear her credit card debt and even probably change her car. Anabelle tried to talk her out of it, but she insisted it was legit because she saw reviews and testimonials online. Little did she know that these scammers make all things bright and beautiful, to convince people to invest with them.

You need to know that if something is too good to be true, then it’s too good to be true. It’s better to keep your money than to lose it to scammers while you equally suffer the mental stress that comes with it. Hannah eventually changed her mind after someone called the business out online and other victims started coming out too. That was how she escaped a potential scam.

Before you invest in a business, do your due diligence.

Keeping up With Trends

Trends don’t have an end. Something might start trending today and could be like that for a month and before you say, Jack, something else is in vogue. There are so many things to use your money for. You can save for emergencies, you can plan a vacation to rewind, you can upgrade your skills or career, and you can also pay down your debt. But keeping up with trends is not one thing you should use your money for. It’s okay to buy whatever you like but you need to know where to draw the line. Your basic needs should be your priority, every other thing can be acquired later when you have the wiggle room for it. Trends know no end, and you can’t keep chasing.

Impulsive Purchases 

The street is overwhelmed with all manner of items you would be tempted to buy. It’s even worse online, cos with one click, the delivery guy is already in your neighborhood and ready to deliver your package. These vendors will stop at nothing to ensure you patronise them, but you need to be smarter. They can’t force you to buy, or rob you of your money, but they have enticing tactics. This is why budgeting is important in personal finance. Whether you’re struggling with debt or you are financially free, not giving in to impulsive purchases will help your finances get better and you will be able to stay afloat.

Don’t Shop When You’re Emotional 

People will get on your nerves, and apart from that there are times you’re down or overly excited. This is not the time to go shopping. When you buy these things when you’re not in your normal state of mind, you may end up overspending or buying things you don’t even need. In that kind of situation, buying things could make you feel better but it’s only a temporary feeling. The breeze will blow and you will realise that you have not made the right decision. 

Don’t Co-sign a Loan You Can’t Afford 

This may not directly sound like what you should not use your money for, but let’s analyse it. If you co-sign a loan out of trust, you need to know that you’re liable to repay in full if the person you cosigned for is unable to pay the loan. This will mean you will pay for a loan you never took out, and it will affect your finances. That’s not a good thing to use your money for. Therefore, you need to weigh your options before co-signing a loan.

Conclusion 

Being financially smart should be your goal, cos without it, you may struggle a few times. It’s easy to get into debt when you spend your money without a budget, but if you’re already in debt, there’s a solution. You can speak with one of our debt experts at EmpireOne Credit. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!