How To Avoid Ruining Your Finances Through The Internet

Consumption is an inherent part of human nature, and the need to have everything at the cost of nothing has become synonymous with greed, impatience and financial distress. With easy access to the Internet, these three vices are only exacerbated with an open spending platform and endless credit from liberal – yet expensive – financial institutions.

Only smart, personal financial-management and discipline can avoid the growing urge to have everything you want, with money that is readily available yet not your own. With that said, here are several ways you can avoid squandering your money on things you do not need:

Avoid Temptation

This may seem like a pedestrian perspicacity, but many fall victim to whimsical impulse buying. Since the inception of online payment methods – like PayPal and Square – the Internet has made it immensely easier to spend without cause.

But do not blaspheme the internet just yet, it it likewise easy to blow your money in person as well.

The solution? What you can do is resist the temptation to spend and only buy things that are absolutely necessary. This will take understanding the difference between what you need and what you want. A 10-year subscription to a Parisian Foie-Gras of the month club? Something you want. Your business' phone bill? Something you need.

Be Aware And Vigilant Of Scams

This is probably the least likely way you will drain your bank account, but rest assure that scams are prevalent on the internet. Be on the lookout for emails or pop-up messages that request for your personal and financial information. Phishers and scams usually send you unsuspecting emails that direct you to a fake log-in page, only to steal your account information and drain your finances.

Many people fail to realize they have fallen victim to a scam because "the offer is too good to refuse." but as you begin to resist the temptation of purchasing things you do not need, you eventually develop a watchful eye for a solid judgment of Internet scams.

Online Billing

There are two ways online billing can pose a strain on your financial management: (i) setting up your credit card to pay monthly bills – e.g. cell phone bills – which is more prevalent (ii) giving in to a free upgrade on a subscription that asks for your credit card information.

Generally the latter problem stems from a result of people forgetting about their upgraded subscription. LinkedIn offers their long time users a one-month premium upgrade with no charge. Based on their terms and conditions, the professional networking company has the right to bill users of the premium product after a month of use.

If you are trying to manage your finances wisely, your best bet is to either not buy into the upgrade or be mindful of when you will be billed and cancel your subscription beforehand. Not doing so can lead to unexpected financial expenses that you did not plan for.

Buy Your Items In Person Rather Than Online

While some companies offer reasonable prices on shipping and handling, others charge astronomically high prices for their shipping methods and this may just be ground shipping. Avoiding shipping and handling costs may save you a lot of money and time.

Include a Rainy Day Account

The last tip is to set aside a "rainy day" account, which are funds for emergency or unexpected expenses that will sneak up on you. Unlike a savings account, which is for long term uses, a rainy day account assists you for financial expenses that you did not plan for. Need to purchase a greyhound ticket online to get to a certain place in an emergency? Your rainy day account will come in handy for just that.

Peter Elliott | Elite Daily