{"id":264600,"date":"2025-11-06T02:10:13","date_gmt":"2025-11-06T02:10:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/264600\/"},"modified":"2025-11-06T02:10:13","modified_gmt":"2025-11-06T02:10:13","slug":"4-common-sense-money-habits-that-arent-so-smart-what-to-do-instead","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/264600\/","title":{"rendered":"4 \u2018Common Sense\u2019 Money Habits That Aren\u2019t So Smart: What To Do Instead"},"content":{"rendered":"\n

We\u2019ve all heard the same old money advice: \u201cCut out lattes,\u201d \u201cpay off all debt ASAP,\u201d \u201cbuy a house<\/a> as soon as you can.\u201d<\/p>\n

Sounds responsible, right? Not always.\u00a0Some so-called \u201ccommon sense\u201d money habits can actually hold you back from real financial progress.<\/p>\n

Here are the top popular pieces of advice that aren\u2019t as smart as they seem \u2014 and what to do instead to actually get ahead.<\/p>\n<\/p>\n

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\u201cNumerous humans believe that the very safest thing to do would be to pay off mortgage early,\u201d said Jeffrey Hensel, broker associate at North Coast Financial.<\/p>\n

In his practice, he\u2019s witnessed such client attempts tying up liquidity in such a manner only to run into issues of cash shortages when there exists an investment opportunity<\/a> or an emergency.<\/p>\n

\u201cRepaying variable-rate mortgage with reserves or cash-generating investments<\/a> can in most cases generate greater long-term security,\u201d Hensel said.<\/p>\n

Check Out: 3 Signs You\u2019ve \u2018Made It\u2019 Financially, According to Financial Influencer Genesis Hinckley<\/a><\/p>\n

The other typical practice is shunning any debt, Hensel said.<\/p>\n

According to CNBC<\/a>, credit card debt<\/a> in the U.S. hits an all-time high of $930 billion.<\/p>\n

\u201cWhereas high levels of consumer debt are harmful, properly formulated real estate lending may result into better returns,\u201d Hensel explained.<\/p>\n

Hensel\u2019s team records an average of 12% to 15% annualized returns on the projects they do with the aim of fixing and flipping by financing as opposed to utilizing cash sources to fund the projects.<\/p>\n

Hensel observed that people are occasionally aware that it is conservative to maintain huge balances in one bank<\/a>.\u00a0\u201cAs a matter of fact, it is risk-focused,\u201d he said.<\/p>\n

According to his clients, he said their sense of stability is elevated, as they diversify the reserves within the institutions, maintain balances within an Federal Deposit Insurance Corporation (FDIC) limit to insurance.<\/p>\n

Hensel observed that most investors put off estate or trust planning by thinking that it\u2019s not worthwhile until they are older in life.<\/p>\n

\u201cIn probate lending, I have famously seen families waste months and tens of thousands in litigatory waste,\u201d he said.<\/p>\n

He said placing trust documents with plenty of time saved those expenses and maintained directives.<\/p>\n

Lastly, Hensel explained that focusing exit strategy on refinancing will go against you.\u00a0\u201cAny change in the market or stricter lending criteria sinks refinances and makes the borrowers vulnerable,\u201d he said.<\/p>\n

To strengthen this solution, he suggested it would be helpful to underwrite every transaction with two or more feasible exits (for instance, a refinance and sale to serve as protection against equity.)<\/p>\n

In other words, relying on a single exit strategy \u2014 especially refinancing \u2014 can leave you exposed if the market shifts or lending rules tighten.<\/p>\n

By planning multiple exit routes from the start, you\u2019ll not only protect your investment but also stay flexible enough to pivot when conditions change.\u00a0In today\u2019s unpredictable economy, having options isn\u2019t just smart \u2014 it\u2019s essential.<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 4 \u2018Common Sense\u2019 Money Habits That Aren\u2019t So Smart: What To Do Instead<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"We\u2019ve all heard the same old money advice: \u201cCut out lattes,\u201d \u201cpay off all debt ASAP,\u201d \u201cbuy a…\n","protected":false},"author":2,"featured_media":264601,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,20353,122184,122183,2152,19350,131,132],"class_list":{"0":"post-264600","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-financial-advisor","13":"tag-investment-opportunity","14":"tag-jeffrey-hensel","15":"tag-money-advice","16":"tag-money-habits","17":"tag-personal-finance","18":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/264600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=264600"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/264600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/264601"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=264600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=264600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=264600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}