9. Buying expensive houses
Every one dreams of a fancy big house, where they can stay happily in comfort and luxury. There’s nothing wrong in this, but you should be aware about how much your income can afford. Going beyond your means and spending extravagantly, while buying costly houses and bungalows that you cannot afford can land you in great financial trouble. This is where most of the stars have also gotten into trouble, with either teetering on the brink or ending up in foreclosures. This includes famous names, like Octomom Nadya Suleman, Nicolas Cage, and various members of the Real Housewives cast. Remember, housing costs should not surpass 25 to 28 per cent of your monthly income.