There is no perfect formula for making the correct financial decision, every single time. However, there is one way to make your decisions a little bit easier: Be aware of red flags. If you understand warning signs that indicate you’re about to make a poor money move, your financial road will be a lot less bumpy. Here are some of the more common financial red flags.
Feeling pressured to make a financial decision? That’s a big red flag. There’s a good chance that any money move made under duress will provide a negative result. Those “limited time only” offers at the store are rarely worth it. If you’re feeling hurried, you may ignore key details and end up with lots of regret down the line.
Over and Over
As US News reports, if you find yourself repeatedly crunching numbers in order to make something work, that’s a bad sign. That new flat screen doesn’t fit in your budget the first, the second or 13th time you try the math. Stay away from any moves that require you to navigate many complicated hurdles. Those obstacles are likely saving you from making a big mistake.
Perhaps one of the most obvious red flags is if something sounds too good to be true. There’s no “perfect investment;” no “get rich quick” strategies. You have to trust that little voice in your head that whispers: “There’s no way this is true.”
As you likely know by now, little in life goes according to plan. Remember that when it comes to making money decisions. If you’re debating doing something that requires every detail to happen perfectly, that’s a giant warning sign.