It is common knowledge that dealing with money is not an easy thing to do. Let’s put aside the old fashioned belief that everyone has the resources to become a millionaire, and you should actually invest all your time and energy into becoming one. Honestly, that is so 2019!
It is a broken mentality fed by all the ghost-millionaires out there that felt at some point the urge to talk about how they became rich, but in reality, nobody knows if they managed to stay that way.
Maybe becoming rich might be hard, but I think we should speak about the real elephant in the room: how easy it is to remain rich? As to this matter, we’ll present to you 14 things financially smart people never buy.
Don’t buy houses they can’t afford
This is the first thing you’ll never see financially astute people do, no matter how big the temptation might be. Although it is on top 3 major life achievements everyone would dream of when it comes to real estate investment things get a little bit complicated.
When one finally wrapped up years of savings and financial constraints, it might be tempted to choose a more aspirational house than a practical one. It may be because of our animal instincts, that we need to find a land of our own to cherish and protect for the rest of our lives, but it is very easy to make a mistake and burden yourself in the following years with a mortgage that you might realize over the years that it is too much for you.
According to Economic Times, there is a simple rule that says how your monthly repayment should not be more than one-third of your family income. Hence, you might want to look after stability and assure your possible dream house doesn’t become your worst financial nightmare.