Here are 7 ways to absolutely kill your net worth.

Here’s what you need to know and what to do instead.

1. Buy more home than you can afford

You might want a big house, but don’t buy based on your emotions. A home is a place to build memories, not an asset that automatically grows in value. Maybe yes ; maybe not. If you find your dream home, make sure you can afford the mortgage payments. Separate the beauty from the cost of the house – they’re two different things. One is for you to enjoy; the other, you have to pay.

2. Do not create an emergency fund

If you have significant net worth, who needs an emergency fund? You do. Everyone should have an emergency fund. An emergency fund is the safety net you need before disaster strikes. At a minimum, you should save 6-9 months (preferably longer) of money in a separate bank account to cover necessary expenses in case you unexpectedly lose your job, get sick, or have other unforeseen expenses.

3. Skip Debt Payments

Don’t skip debt payments. Whether it is a student loan, personal loan, credit card, car loan or mortgage, you have a contractual commitment to repay your debt. When you skip a payment, you will be charged fees and penalties. You might think that’s okay. However, missed payments can also hurt your credit score – costing you a lot more money with higher interest rates the next time you want to borrow.

4. Default on debt

You don’t want to default on your debt. Before borrowing, understand the interest rate, monthly payments, and loan terms. If you don’t think you can make the monthly payments, don’t borrow the debt.

5. Borrow against your IRA

Don’t make an early withdrawal from your IRA. If you do, you could face a penalty as well as taxes. Likewise, borrowing from your retirement account is also risky, even if you receive a low interest rate. There is always a chance that you may not be able to repay the loan. So save your retirement account for retirement.

6. Don’t Pay Off Credit Card Debt

Credit cards can be great financial tools. However, if you have credit card debt, the interest rate can be 10-20% or more. One option is to consolidate your credit card debt with a personal loan. A personal loan is an unsecured credit that is usually repaid within 2 to 7 years. If you can get a lower interest rate with a personal loan compared to the interest rate on your credit card, a personal loan can be a great financial way to save money.

You can use this credit card refund calculator to determine how much you could save on your monthly payments.

7. No refinance student loans

If you have student loans, you should consider refinancing your student loans. Student loan refinancing rates are ridiculously low now and start at 1.9%.

Student loan refinancing allows you to combine your existing federal student loans, private student loans or both in a new single student loan with a lower interest rate. To maximize your chances of getting approved, you can apply to multiple lenders at once and even check your new interest rate online in two minutes without impacting your credit score.

This free student loan refinance calculator can show you how much you can save.