Always read before signing

I found an interesting post over at I've Paid for this Twice Already about the first financial advice you ever received.

I posted my reply and it occurred to me that the advice I posted about is just as relevant today, or more so, than it was 25+ years ago when I got it:

This applies to more than just finances, but the first advice I remember was from my grandfather. He told me to always read everything before signing. I have followed that advice when opening bank accounts, buying cars, houses and more. It has always proven to be excellent advice! You have absolutely got to know and understand what you are signing your name to!

I recall reading in the news last year about the many folks who didn't understand the mortgages they took out on their homes. They didn't realize that adjustable rates could (and would) increase, or that balloon payments would be due.

Many of these folks have probably been put in the unfortunate position of being unable to keep up their mortgage payments and even losing their homes to foreclosure.

So, this seems like a great time to reiterate the advice that has served me so well for many years:

ALWAYS read and understand any document before signing your name to it!

Once your name is signed, you are legally bound to adhere to the terms of the document. Don't be shy about taking your time to read and ask questions.

This is a simple step you can take to protect yourself, your family and your financial security.

Find more great tips at Rocks In My Dryer!