5 Rules of NEVER (and the one boundary that will save your financial life)

Welcome back to Live Rich Retire Rich.

I was listening to an episode of The Suze Orman Show recently where she talked about her "five rules of never." It reminded me of conversations I've had with clients, friends, and family over the years. The same mistakes keep showing up.

I love anything that gives people simple guardrails.

Most financial stress doesn't come from a single major mistake. It comes from one "small" decision you made quickly… because you trusted someone… because you didn't want to disappoint them… because it felt awkward to ask questions… because you didn't read the fine print.

Then months or years later, you're stuck cleaning up the mess.

So today, I'm sharing my version of the "five nevers," along with a story about cosigning that I'll never forget, and the one boundary I want you to carry forever:

No signature without clarity.

If you remember nothing else from this newsletter, remember that.

Never #1: Never buy a variable annuity you don't fully understand

This one trips up more people than you'd expect, especially inside retirement accounts.

Variable annuities often come with high fees, surrender charges, confusing terms, and restrictions you don't realize exist until you try to access your own money.

And here's what makes me raise my eyebrows: they're commonly sold not because they're best for you, but because they're profitable for the person selling them.

As a general rule, if you don't fully understand what it is and you can't clearly see what you're paying, it's a no.

Your retirement plan should not feel like a mystery.

Live rich now means you don't carry unnecessary confusion. Retire rich later means you keep more of your money working for you.

Never #2: Never buy insurance as an investment

People get sold on the idea that a life insurance policy is also a "great investment." Whole life. Universal life. Variable life. The pitch sounds smart.

But insurance and investing are not the same job.

Insurance is protection. Investing is growth.

When you mix them, you often end up with something expensive, complicated, and underwhelming at both. You pay more in premiums than you would for simple term insurance, and your "investment" portion grows slower than it would in a regular account.

For most people, a cleaner approach is term life insurance (if someone depends on your income) and separate investing in retirement accounts or index funds.

The goal is not to collect financial products. The goal is to protect your life and build wealth with tools that actually do what they claim.

Never #3: Never finance a car for more than three years

This one triggers people, because the car industry has trained us to focus on one thing: the monthly payment.

"It's only $60 more a month…" "You can afford this if we stretch it to 72 months…"

Yes, and it's also a longer loan, more interest, and a car you're paying for long after the excitement is gone. You're still making payments when the warranty expires. You're still making payments when the repairs start. You're still making payments when you're ready for something different but can't afford to switch because you're underwater.

A long car loan keeps you trapped in a "payment lifestyle," where your income goes to bills and your freedom keeps getting delayed.

If you can't afford the payment on a 3-year term, it's too expensive for your current situation.

I say that with love, not judgment.

Living rich isn't about what you drive. It's about how much peace you have after your bills are paid.

Never #4: Never name a minor as a beneficiary

This sounds like a small technical detail until it becomes your family's nightmare.

A lot of parents name their child as a beneficiary on life insurance or retirement accounts because it feels logical. But minors can't directly inherit the same way adults can. That can create delays, court involvement, or a blocked account, exactly when your family is grieving and needs access to funds.

The better approach is to create a living revocable trust and name that trust as the beneficiary, with a trustee who can manage the money until your child is old enough to handle it.

This isn't "fancy." It's responsible.

It's you saying: "I love my child enough to make this easy for them when I'm not here."

Never #5: Never cosign a loan for anyone

This is the biggest "never," and I stand by it completely.

Cosigning is not kindness. Cosigning is liability.

When you cosign, you are legally saying: "If they don't pay, I will."

Not maybe. Not "only if they lose their job."

You. Will. Pay.

Your credit is on the line. Your wages can be garnished. Your financial future is now tied to someone else's choices.

I once heard a story that stuck with me. A woman cosigned a private student loan for a friend. Her friend later passed away. She was still responsible. The loan grew. The collectors called. She felt angry, stressed, and trapped. She did something kind, and it became a nightmare she couldn't escape.

Most cosigning happens for emotional reasons: "She's my friend." "He's family." "They promised." "I don't want to say no."

But here's the truth: if the lender doesn't believe that person qualifies on their own, the lender wants someone who does. That's you. They're not trusting your friend's finances. They're using yours.

If you're not fully prepared to pay the entire loan yourself, you're not allowed to cosign.

"Najma, what if I want to help?"

I love that question, because it means you're compassionate. But we need compassion with boundaries.

If you want to help someone financially, here are safer ways:

• Help them make a plan (budget reset, debt payoff steps, credit improvement) • Help them shop for better terms or find alternatives • Offer a one-time gift you can afford to never get back • Support them with resources, not your signature

Your financial future is not the price of proving you love someone.

The boundary that changes everything

Here's a truth people don't always like:

If you sign your name on something without understanding it, you can't act shocked when it becomes your responsibility.

I'm not saying that to shame anyone. Most of us have done it. But that's how you learn, and that's how you become free.

From today on, this is the standard:

No signature without clarity.

If you don't understand it, you

don't sign it. If you feel pressured, you pause. If you need time, you take it.

A grown-up money decision should be calm, not rushed. And anyone who loves you will respect that.

With your financial clarity in mind,
Najma Zanelli
Explore Offerings
Founder, NAZ Global Consultancy
Follow me on IG: @najma_zanelli
Email: [email protected]

P.S. Know someone who needs to hear this before they sign something they'll regret? Forward this to them. Sometimes the best gift is a guardrail.