There are varying schools of thought on borrowing money, but I think most realistic folks would agree that unproductive debt is something to be avoided.
Leverage magnifies money, and when you’re talking about the big bucks that professional football players make, adding leverage on top of that can be a recipe for disaster.
If millionaires can go broke without possessing financial knowledge, then you can thrive with that knowledge. Where do you acquire this education? Personal finance websites. They are free and not at all time-consuming.
You can’t save money for a new car or a new home, or a new family if you don’t know what life is costing you now. I promise you those NFL players who went bankrupt didn’t have a budget.
Many banks and credit unions now provide budgeting tools that make it easy to predict, say, how much you’ll save per month if you drink one less Starbucks latte a day or buy fewer lunches during your workweek.
An emergency fund isn’t just peace of mind. It can save you money because when disaster strikes and you’re not prepared, you often run up your high-interest credit cards – and carry balances for months or even years before you can pay off what you owe.
If you really want to run up the lead on your emergency fund, ask your boss or your Human Resources Department if they’ll help you.