Let’s face it, we all need this talk every now and again as a way to remind us of what to avoid in our financial dealings.  So, here we go:

Stay Out of Debt.  I hear some of you moaning “not that again!”  Yes, you need to keep hearing this until it takes hold in your brain.  Staying out of debt will do several things for you.  First, you are not under bondage to lenders who charge outrageous interest rates and fees.  Next, because of that, you have extra money to be able to afford necessities for which others have to go into debt.  The peace of mind alone is worth the effort on this one.

Do Not Loan Money to family or friends.  Whining family or friends who need money because they screwed up is not fun to listen to.  If you become known as one who does this kind of lending, then word will get out and you’ll find all kinds of new “friends” who need money. The best response is “I’m sorry, but I’m not a bank.”  Sounds cruel and harsh, but I guarantee you that if someone resents you for not helping them, then it is time to re-evaluate that relationship.  Is that what you call a true friend?  If you have already made loans to people who are not paying up, then do one of two things.  Either contact them and ask if they can pay off the loan immediately, or LET IT GO.  Write it off and never do it again.  You’ll sleep better at night.

Never Co-sign a loan.  Especially for another adult.  If they have not learned by now the principles of paying on-time and in full, then you are seriously placing yourself in the position of having to pay that person’s loan for them.  Just think about them driving around town in that car on which you are making the payments.  And you do not even know where to find them.  Not a pretty picture.  Don’t do it.

Pay Bills on Time.  Get your budget in order and make sure you pay your bills on time.  This will keep your credit rating intact and give you peace of mind.

Avoid High Interest Financial deals.  Credit cards are the bane of our generation. Get rid of them.  Cut them up in tiny pieces and burn them.  The only plastic that is allowable is a debit card.  Negotiate better deals if you must finance a car or other major purchase.  Shop around first.

If you follow these simple steps you will do better than most people.  And you will have a sense of satisfaction that others do not.