Common Money Traps and How to Avoid Them
Tuesday, August 21, 2012 5:00AM
People all over the country made it their New Year's resolution to get out of debt in 2012. Unfortunately, there are many facets of our lives that make saving money — and holding on to the money we muster up — a difficult task. Our day-to-day lives are enveloped in what internationally acclaimed personal finance expert Suze Orman calls "money traps."
Money traps are financial decisions that may seem like a good idea, but that realistically can drain your savings account. Fortunately, Suze recognizes some of the most common money traps, and she is here to help "Anderson" viewers become conscious of the traps and learn how to avoid them…
Money traps are financial decisions that may seem like a good idea, but that realistically can drain your savings account. Fortunately, Suze recognizes some of the most common money traps, and she is here to help "Anderson" viewers become conscious of the traps and learn how to avoid them…
Filed Under: As Seen On The Show
Comments
Suze Orman made a statement about borrowing money from your 401k -
Funds contributed to your 401(k) are on a pre-tax basis. If you take a loan from the 401(k) it is not taxed. The repayment from your paycheck is taken after tax.. The only other time the funds used for the loan is through a Withdrawal of the funds.
Family should never loan money to their children. I loaned money to my daughter with the intentions of her repaying the money. She got a second job and started paying me $200 a month. After 4 months, she quit paying me. I was told that the money I would loan her, she would pay off her high interest credit cards. I asked for the statements to pay them myself. Instead I put the money in her checking account and found out 4 months later that she purchased a new Euclipse sport car. Another payment for her. She purchased this car only days after I loaned her the money. Now we are not speaking. I am very hurt and cannot believe that she would do this. It has been 2 years since we have spoken. Do not let your heart into the situation. Tough love. She created her miss and she should get herself out.