Even well-versed individuals in personal finance are prone to financial blunders. The key is to learn from these errors and keep moving forward.
A user asked on a popular forum, what is the biggest money mistake you have ever made? and here are the top finds:
1. Regret About Buying A Mobile Home As A Starter Home
Buying a mobile home as a starter home can be a poor financial decision. They often need to hold or increase in value, resulting in a lack of equity and costly repairs.
“Bought a mobile home as a starter home. No one ever explained to me as a young adult the importance of investment and future planning. Mobile homes do not hold nor increase in value, so you never build equity. It’s akin to renting, except you have to cover all your repair costs too—a terrible financial decision. Don’t buy mobile homes, kids. Just don’t do it.” said one.
“I worked with a guy who had to replace the roof on his mobile home, walked into the office, and he was crying. It cost 30 grand.” another added.
“A non-smoker said to me “smoking is nothing but a slow suicide.” I quit four months later and haven’t smoked in 25 years. Those words haunted me every time I lit one up.” said one. “I regret 43 years of buying and smoking cigarettes.” a user said.
“It’s unfortunate that cigarette companies continue to profit from addiction. Still, it’s up to individuals to quit and prioritize their health and financial stability.” another added.
3. Going To College Straight Out Of High School
While college can be a great opportunity, there may be better choices for some straight out of high school. Considering one’s goals and options before committing to higher education is essential.
“Going to college right out of high school. College is great if you know why you’re there, but not for someone who isn’t sure.” said one.
“A lot of kids in my degree had no clue what they were doing and ended up dropping. Always blows me away the number of people that assume college is required next step.” another said.
4. Online Shopping From Portugal
“Buying things from Portugal multiple times and never seeing them delivered nor compensated. RIP money, never buying anything on delivery or from there again.” said one.
“I have a business, and delivering TO Portugal out of all countries has always been a nightmare. Bunch of clowns.” another said.
5. The Costly Mistake Of Prioritizing Parties Over Finances
Choosing beer and parties over investing may have seemed like fun at the time. Still, this individual learned the hard way about the long-term cost of prioritizing immediate pleasure over financial planning.
“When I was younger, I invested in beer and parties, and the payoff was terrible.” said one.
6. Gambling On Gaming
“Fifa ultimate team packs. Like an unholy amount of money FLUSHED.” said one.
“It’s important to be aware of the risks of spending money on in-game purchases like FIFA Ultimate Team packs, which can become addictive and expensive quickly.” another added.
7. Trapped Savings
Trusting a bank with high-interest rates in an unstable economy proved a costly mistake for this individual in Lebanon. Unable to access their savings, they face ongoing fees and a bleak financial future.
“Kept my money in a bank ($ 150,000) because they were offering high-interest rates in a country with a questionable economic condition where I lived at the time. The entire system crashed, and I can’t access my money since 2019 while the bank keeps charging me monthly fees, slowly draining my savings.” a user shared.
8. The High Cost Of Procrastination
Procrastination can be costly as it leads to missed bill payments and opportunities.
“Procrastination. I have paid so many procrastination fees for late bills and missed opportunities that the mind boggles.” said one. “Procrastination can be a difficult habit to break, but the benefits of taking action are worth the effort.” said another.
9. Financing A Used Car
This individual shares his experience with the financial costs of financing a used car and leasing a new one. He now prefers to pay in full with cash and avoid the hassle of ongoing car payments.
“Financing a used car and then leasing a new one. Never again! I bought my current car in like new condition and paid in full with cash. I love never dealing with car payments!” a Redditor shared.
10. Credit Card Debt
Credit card debt can be a severe financial burden for many individuals. High-interest rates, late fees, and minimum payments can make it challenging to pay off debt and negatively impact credit scores.
“Credit card debt. Finally paid everything off when we sold/bought our next house and made the promise never to carry any credit card debt. And we haven’t.” said one.
“Credit card debt can be overwhelming, especially when high-interest rates and fees make it difficult to pay down.” another added.
11. Becoming A Doctor
“Becoming a doctor. At the end of the day, it’s just a job. It wasn’t worth flushing my 20’s down the drain and accumulating a mountain of debt for this. I’m (finally) in a good spot in life now, but I don’t think the sacrifices I made to get here were worth it. Even from a less self-centered point of view, I don’t really do that much good for others with this job. Modern medicine is so much better at dragging out death than it is at improving life, and I’m tired of being a part of it.” said one.
12. Trusting Too Much
“I co-signed a loan for my girlfriend at the time. I was 20 and in love. She bought the car, then put it in her mothers name, filled for bankruptcy, and went to live with the guy she was cheating on me with.” shared one.
13. Big Fat Wedding
“Big fat Indian wedding feeding nearly a 1000 judgemental semi-strangers I’ll never hear from again!” said one.
14. Getting Married
“Getting married to the wrong partner. People like to think about marriage as an emotional and physical commitment and tend to forget that it’s a financial commitment as well. If you get entangled with someone who has no clue how financial management works, you’re in for a rollercoaster ride straight to hell.” said one.
What financial mistakes have you made, and what have you learned? Do you have any tips or strategies for avoiding common financial pitfalls? Share your thoughts and experiences.
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This article was originally published on Mrs. Daaku Studio.