Fashionista Finance: What NOT to Do with Your Money

Fashionistas often have hearts of gold with matching earrings and a bag to go with it which leads many of us to be too lax with our money. Well ladies, it’s due time we closed our purses and smartened up. Here’s a few things NOT to do with your money:

1. Buy Now, Pay Later. It’s so easy to whip out your Visa so you can take those hot new Giuseppe Zanotti home with you right away, but let’s be real, fashionistas—how many times do we say “I’m just going to put this one thing on my credit card” and then 20 things later you have a bill that rivals your social security number? Exactly.

New rule: If you can’t afford to pay for it outright with cash and still have money left for rent, mortgage, bills, debt payments, and savings then you can’t afford it.

2. Footing Pay Day Loans to The Usual Suspects. If there’s a line outside your apartment with anyone from your friends, cousins, siblings, neighbors, random strangers patiently waiting with their hands out before your direct deposit even hits your account, we have a major problem. If you’re still waiting for the $500 you lent your roommate back when Toni Childs was still on Girlfriends, it’s time to tighten your purse straps.

New rule: Don’t lend out money you can’t afford to not get back. You also might want to look into the company you keep.

3. Co-sign on a Loan. Sure, it seems like you’re just helping your friend or family member out, but do you know if they miss a payment it can severely affect your credit? This goes the same for joint accounts. The person could be keeping up with the payments, but what if something one day like bankruptcy comes into play. If you don’t pay off that balance in full, you could be hit with a charged-off account on your credit report. Yikes!

New rule: Just don’t do it.

4. Not Doing a Financial Check-Up. Spending recklessly without checking in can lead to disaster. But even if you consider yourself a champion saver, you’re still due for a checkup. You want to make sure your finances are in line with your financial goals. Be sure your savings is in pace with inflation or it’ll take more of your money to pay for the things you need.