7 Ways To Avoid Personal Financial Management Pitfalls

Here's a primer for avoiding major mistakes in personal financial management:

1. If an opportunity sounds too good to be true, avoid it.
2. Always check a company's or a worker's references with the appropriate state government agency or the Better Business Bureau if the other party is unknown.
3. Walk away if you are being pressured to make a financial decision.
4. Never invest in anything you don't understand.
5. Discuss large prospective investments with family, friends and professional advisors such as your CPA before committing any funds.
6. Don't pay to obtain a prize or to be allowed to enter a contest.
7. Don't provide your credit card number to anyone unless you initiated the call.

Unfortunately, even business savvy people, who know better may get "carried away" when presented with a great opportunity, and make a hasty decision that they will ultimately regret.

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