• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Apply Now
    • Qualifications
    • Is This Right For Me?
  • Proven Results
    • Debt Relief Benefits
    • Credit Card Debt Relief
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Login
HomeBlog Personal FinanceFinancial Planning – When the “Right” Thing is Wrong
Video Transcript

Free Debt Consolidation Quote

By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Financial Planning – When the “Right” Thing is Wrong

January 5, 2017 by National Debt Relief

Surprised young womanIf you’ve read just one book or article on self-help or financial planning you undoubtedly came away with a lot of shoulds – “I should lose weight this year”, “I should make and stick to a budget”, “I should become a stay-at-home mom” and so on. The problem is that these “shoulds” can pull you down because you’re seeing your life through other people’s lenses.

When it comes to your financial bottom line “should” can be just as harmful.

Here are four “shoulds” that may seem right but can actually be wrong and should be replaced with common sense.

I should refinance my mortgage to a 15-your loan

Here’s one that just seems self-evident. Interest rates today are practically at an all-time low at around 3% for a 15-year mortgage. If you have your radio on for more than half an hour  or read several articles on financial planning you’ve undoubtedly heard that it’s imperative to refinance so that you can get that loan paid off early and own your home free and clear when it comes time to retire.

But there is no such thing as a free lunch and a 15-year mortgage will have a higher payment than the 30-your loan you currently have. What happens if you were to run into a big unexpected expense or lose your job? You might find it tough to make the payments on that oh-so-attractive 15-year mortgage. You could actually end up losing your house instead of getting it paid off early because you were not able to handle those higher payments.

A better idea for your financial planning is to just double up on the payments on your existing 30-year mortgage. That way you’d get your mortgage paid off much faster but if you were to run into some financial emergencies along the way you could scale back and make just the minimum payments on that 30-your loan until your situation gets better again.

I should drop what I’m doing and care for my aging parents

We understand your parents are great people who did a lot of sacrificing to raise you and get you through school and you really do want to help them. But if you interrupt your career to bathe, attend medical appointments, clean, argue with insurance companies and basically act as their caregiver there can be some real pitfalls with long-term repercussions.

For example, your financial planning will take a hit,  you’ll have a smaller retirement nest egg, you may have lower Social Security benefits and your health could suffer. In addition, you may find it difficult to rejoin the workforce because your professional networks and skills have become rusty. The relationship you have with your parents could become strained as could your marriage and your relationship with your children.
Thanks to the aging of the baby boomer population we now have a group of professional care givers that, for a fee, will help you with finding in-home care, nursing, medical payments, driving to appointments, bill paying, home shopping and even more. One of these professionals could quickly handle all those caregiving activities that would take you many hours. This would leave you, the beloved son or daughter, still employed, feeling mentally fulfilled and having a nice, pleasant relationship with your folks.

I should never take a risk

Scared womanWhether we like to think of it this way or not life is just one calculated risk after another. Whenever you make a decision you’re taking a risk because there’s no way for you to know what its outcome will be. Just walking across the street is a risk because you could be hit by a car. Signing up for a home equity debt consolidation loan is a risk because you could run into an unexpected financial emergency and lose your house.

However, there are some risks you should take because the rewards could be great.

For example, you could risk getting turned down by a man or woman and it may have nothing to do with you as a person. Whether you’re asking her or him to write down their email address or their phone number on a napkin you’re risking rejection. But if you run the risk and are not turned down you could end up dating the person you  spend the rest of your life with.

Another example in financial planning is the risk of failing. You could invest $10,000 in a startup venture with the risk of losing it all. But failing could be both the worst and best thing that could happen to you. Failing teaches you an important lesson that can help you figure out something that would lead to success. The harsh reality is that if you never risk failing you’ll never succeed. Stephen Spielberg, who has won 13 Academy Awards, was rejected by the University of California’s School of Cinematic Arts twice. The billionaire Oprah, who now has her own TV channel, was fired from her first job as a TV anchor in Baltimore. And J. K. Rowling was a single mother broke and on welfare and studying while simultaneously writing the first Harry Potter book.

If you have a problem with risk taking, here’s a motivational video with billionaire and super risk taker Elon Musk that should help.

I should pay whatever’s necessary to get my child a great education

Are you aware of the fact that college students graduated last year owing an average of more than $37,000 in debt – just for an undergraduate degree? Given the fact that many of these people graduated with no debt, this leaves a lot of folks graduating owing $80,000 or more. And that’s without an advanced or medical degree. Where were these peoples’ parents when their children were making financial decisions that ended up with them owning so much money? The sad fact is that they were probably co-signing student loans and harming their own retirements.

Have you learned to say no to your children when they want the latest iPhone or $200 jeans with rips at the knees? If you haven’t, now is the time to learn. When your child says that he or she wants to go to a private school in some faraway state to get a degree in English, here’s where you need to just say no. Tell her or him that they can get the same degree for half the price at a school that’s like an hour from home. Or you can use the “yes but”. Yes, you can go to that private school but you’ll have to pay for it. I won’t pay off your student loans because if I do I’ll end up living with you as I won’t be able to afford my own retirement.

Do you qualify for debt consolidation?

National Debt Relief
National Debt Relief

National Debt Relief is one of the largest and best-rated debt settlement companies in the country. In addition to providing excellent, 5-star services to our clients, we also focus on educating consumers across America on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. We’ve served thousands of clients, settled over $1 billion in consumer debt, and our services have been featured on sites like NerdWallet, Mashable, HuffPost, and Glamour.

Follow National Debt Relief: Facebook Twitter Instagram Linkedin

Primary Sidebar

Consolidate Your Debt!
Find out how NDR could help.
  • Get one low monthly payment
  • Avoid bankruptcy
  • Get out of debt in 24-48 months
Get Your Free evaluation
Free Debt Consolidation Quote
By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
 Trusted By Our Clients

"Great Success"

Finding National Debt Relief has been an absolute dream.. The amazing reviews you see everywhere are valid. Every time I call with a question, the team assists me in a kind and professional manner. NDR is helping me tackle my debt - we are chipping away at a new goal every month. I am so thankful to have found NDR.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Jessica Pauciello
ConsumerAffairs Reviews

Latest Personal Finance Posts

  • How To Set Realistic New Year Money Goals
  • What Types of Accounts Do Banks Offer?
  • 5 Easy Tips On How To Build Wealth With Low Income
  • What Are The Benefits Of A Virtual Bank Savings Account?
  • Can I Combine All Bills Into One Payment?
National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
Company
  • About Us
  • Contact Us
  • Blog
  • Careers
  • Corporate
  • Privacy Policies
  • Terms Of Site
  • Disclaimer
  • Sitemap
Products
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Debt Settlement
  • Calculators
  • FAQs
Debt Resources
  • Credit Card Debt
  • Medical Debt
  • Personal Loan Debt
  • Unemployment
  • Divorce Debt
  • Retiree Debt
  • Veteran Debt
  • Business Debt
  • Personal Finance
Follow Us
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Pinterest

© 2021, National Debt Relief, All Rights Reserved.

Disclaimer
Disclaimer
Disclaimer