You're now entering the financial twilight zone. That is, you would be if you read this article from Suze Orman. In it she talks about self worth, honesty and money and, as she sometimes does, she enters the money psychoanalysis zone. Yikes!
But there is some good in this piece, some tips she suggests that will grow your net worth if you apply them. My favorites:
A risky option ARM or a one-year adjustable interest-only mortgage are mortgages designed for people who can't really afford to buy a home. If you can't buy a home by using a more conventional mortgage such as standard fixed rate or a Hybrid ARM tied to how long you intend to live in the house, then you should wait till you can. The smarter strategy is to shop for a less expensive home in the neighborhood you want to live in or expand your search to less expensive neighborhoods. Instead you have an incredibly risky mortgage that could put you in a deep financial hole.
Anyone who doesn't participate in a 401(k) plan that offers a company match, pleading that they can't afford it, isn't being honest to themselves. You can't afford not to participate. The matching contribution is the same as a bonus. And in many plans it's not hard to qualify for a $1,000 or $1,500 match each year.
And don't get me started on running up high credit-card balances for purchases such as dinners out, expensive clothes, and getaway weekends. Much of the $9,000 average credit-card balance in the U.S. is probably the result of unnecessary and indulgent purchases.
Some good, basic tips that we should all follow as doing so will help us substantially grow our net worths.
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