The following is an article “These Financial Trends may not be in Your Best Interests” by Marc Primo.
While it’s as easy as unlocking your phone, searching the web for solutions to life’s common problems doesn’t always do what they’re supposed to. Similarly when the problem concerns money, some financial trends might not work for you as they do for others so you’re really going to have to keep yourself on your toes when it comes to reviewing today’s business trends.
When you chance upon a good financial idea or solution online that seems to be reasonable enough to consider, ask yourself first if it’s the best for your long-term interests. Customizing your own financial management is oftentimes the best way to go about managing money rather than jumping in on some financial bandwagon or creative listicle on a blog. Just remember the many networking scams, data theft, and insurance fraud that have already hounded millions of people since the paper bill was born and channel your money brain to what you really need to do at the moment.
To help you with that, here are three trends that you may want to avoid altogether unless it’s a last resort.
Applying for a payday loan. One of the most convenient ways to create debt is by applying for payday loans which are very accessible even via a Google search. While they can do you some good when you really need the money, payday loans can often choke your finances with high interest rates and an annual percentage rate of 400%. If you are not careful enough, you may find yourself paying off more debt than taking home a slice of your income every month. Many have frowned upon this particular financial trend that quite a few states have either investigated some payday loan providers or limited amounts to protect loan applicants. Consider creating an emergency savings fund early or apply for low-interest personal loans instead if you are in a hurry to get yourself out of a financial rut. That way, you don’t suffer from hidden and ballooning charges which are quite so easy to miss or disregard these days.
Investing in Cryptocurrencies. Whoever said that the cryptocurrency trend has died down is wrong. Just recently, www.coindesk.com reported that this financial trend “has risen well above annualized returns of U.S. equities, commodities and bonds market in 2019”. But does this mean we should all engage in this financial fad? You’re going to have to review both your alternatives and digital money knowledge carefully on this one. Cryptocurrency can either become the best asset for investments in the future or the biggest blunder in financial history.
With the progress of blockchain in various industries, the former can be possible but this is not to say that the world is ready for this kind of digital transition just yet. While everything is still up in the air on cryptocurrencies, try to brush up on its progress regularly and if you really have to, invest only small amounts (about 5 to 10% of your financial portfolio) for a start and gradually increase them if projections are shaping up positively.
Availing of travel opportunities via credit cards. One of the benefits of using a credit card is that you get to earn rewards that allow you to travel places. With this perk, many avid tourists have resorted to travel-hacks-- a strategy to earn rewards points for cheap or free holidays. But what about those people who really don’t have the money to travel but are forced to avail of this credit card advantage? It may be best for you to decline from the offer altogether so you can avoid paying interest fees when you use your card more just to reach the allotted points for the reward. The points that credit card users usually earn that are redeemable as airline tickets or accommodation packages may also be equal to up to three times the actual amount of the “free” tickets or hotel stays. But don’t think we discourage travel-hacking as it is indeed a plus when you use your magic stripes to purchase what you need. Just try to consider scoring travel coupons or joining travel and hotel loyalty programs instead, and don’t force yourself to use your credit card just to earn points for “free” perks.
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