When it comes to online personal finance, you should be extra-careful to observe the first rule of personal finances: Never pay for something that you can get for free. There are plenty of online financial services that are eager to do one thing and one thing only: take your money. Sure, they might provide a service that is useful to you. But 99.9 percent of them don’t do anything you couldn’t do yourself.
"One way to solve the traffic problems of this country
is to pass a law that only paid-for cars
be allowed to use the highways.”
- Will Rogers |
Doesn’t it seem counter-intuitive to PAY someone to help you save money? That’s like going out barefoot in a snowstorm as a way of curing your cold. The world of online personal finance is shady at best. The Internet is already an ethereal place, with nothing concrete or tangible to it. When you introduce money into the equation, it becomes even more vague. There’s no actual cash changing hands; it’s all done electronically; it’s very easy for hucksters to take advantage of people. One common service provided by online personal finance entrepreneurs is a virtual “envelope system,” which helps you keep track of your monthly expenses. It’s a useful system - but you can do the same thing yourself at home with actual envelopes, if you want to. Why pay a monthly service fee when you can do it for free? Don’t pay someone else to do it. Pay yourself to do it! Another sketchy area of online personal finance is the many people who want to sell you books, CDs, videotapes, seminars, workshops, and other things that will supposedly help you manage your money and get rich quick. Do these items hold the secrets to getting out of debt and becoming financially independent? Well, some do provide a good value, but many are just repackaged anecdotes that provide no real “secrets” to anything. The one surefire way to become debt-free and stay that way is to spend less, save more, and earn more. Rest assured, the “get rich quick” schemes simply DON’T WORK, ever, for anybody. If you’re looking into any personal finance product, it’s probably because you’re having financial difficulties. Don’t make those troubles worse by actually falling for a scam that provides no real value. Personal finance should not be a complicated affair. Monitor your expenses and spending habits, look for ways to reduce or eliminate costs, and stick to your budget. Yes, it’s easier said that done - it requires great willpower and self-discipline - but the rewards are priceless. So remember, don’t waste money on financial services that you don’t need, or that you can do yourself for free.
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"Money is better than poverty, if only for financial reasons."
- Woody Allen |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
