Have you ever made a big money mistake? Chances are, if you’re human and over the age of 18, you’ve probably spent money in one way or another that you regret. I know I certainly have. The good news is my money misbehavior has taught me some important life lessons, the bad news is, well, my retirement account can tell you all about the bad news!
Here are a few of my biggest money mistakes:
Buying a new car-Yup, you heard it here first. Back in my younger and much stupider less money conscious, days I purchased a brand new (0 miles, fresh off the truck, drive off the lot with that new car smell) 2-door Honda Civic. Why I didn’t buy a nice used model? I have no idea. I guess the idea didn’t even occur to me. I mean, buying a used car is dangerous right? You don’t know who drove it or how they maintained it. And we call know that used cars all have over 100k miles, right? WRONG? Oh my word, I was a moron. Thankfully, I’m now a used car convert! Our current car is a *new to us* suv that we love. We paid for it with cash and it runs like a charm.
Taking out student loans-I’ve never regretted obtaining my degrees. I have however, regretted financing them. If I could do it all again I would chose a grad school that gave me a better financial aid package. I’d also probably work a couple more years in-between undergrad and grad school so that I could save up money and pay my tuition with cash. Dealing with the student loan companies was a nightmare and I’d happily work more, spend less and attend a cheaper school to avoid them, if I’d known.
Not saving for retirement sooner. Better late than never right? Oh, if I’d only been more financially savvy during my early twenties! I talked about it a bunch in this post, but I didn’t get started saving for retirement until after I paid off all of my student loans. Now of course I’d love to have those years back so I could save and benefit from the beauty of compound interest. Live and learn!
Buying stuff to “fit in”- I grew up in a very rural town on the coast of Maine. I wouldn’t have recognized a Louis Vuitton purse if it hit me in the face when I was 16. When I turned 18, I moved 8 hours away from home. At college, I “found” a bunch of designer brands that I’d never known existed. Suddenly I wanted (and bought) brand name jeans, designer purses (yes more than one!) and Tiffany jewelry. I got my first credit card and went a little nuts before I came to my senses and found my down-to-earth friends.
Care to share a money mistake? No guilt or shame, this is a safe space!
Image: DoobyBrain