The world is full of tough choices and decisions when it comes to money. Making the right choice is not always easy, but if you are financially responsible, these decisions and choices can become easier. However, there are also some decisions in life that everyone makes, financially responsible or not. Just because you are financially responsible doesn't mean that you don't sometimes do something a little bone-headed. With that in mind, this article will contain some things that you shouldn't do if you consider yourself a financially responsible person.

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Take Out High-Interest Loans

High-interest loans are terrible almost all of the time, but they are a necessary evil. There are sometimes when people need something, and the only way they can get it is by taking out a high-interest loan. These are a terrible financial choice as you end up paying a ton more money for the thing you needed. These loans can take years and years to pay off and are not a good idea unless you literally need the loan to survive.


Whether you are someone living paycheck to paycheck or someone making millions of dollars, there is a good chance you live above your means from time to time. While here and there isn't going to be a massive issue, it can get terrible once you continue to overspend and overspend in every aspect of life. If you find yourself overspending, you need to create a budget and figure out where all your money is going. Once you do that, you will better be able to see what areas need improvement and whatnot. Spending too much can make it hard to get anywhere in life, so make sure not to overspend too often or else you will lose the title of being “financially responsible” very quickly.

Use Your RRSP to Pay Off Your Debt

While it is a good idea to pay off your debt (and pay it off aggressively), you shouldn't be doing that with your retirement money, especially if it is held in a Registered Retirement Savings Plan (RRSP) account. While it feels good to get debt off of your shoulders, you might end up loosing more in taxes (yes, you're going to pay more taxes if you withdraw money from your RRSP) than you would have lost in interests by paying back your debt during a longer period. 

Be Uneducated About Finance

Yes, it is possible for people to be responsible financially without being educated about finance. Some people work a job making tons of money and save lots, without knowing anything about finance. However, that is likely eventually going to come back and bite them. They could also grow rich regardless of their lack of knowledge, but it does not mean they won't leave a lot of money on the table because they don't manage their money efficiently. We are in the camp that everyone should do their best to be a little more educated about finance, even if you have lots of money and savings. Temptations and tough monetary choices lie ahead, so make sure to be educated so you can handle them without imploding or overspending.

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