Everybody makes mistakes; the most important thing is that we learn something from them. If we don’t learn a lesson, then we will probably do it again. Without further ado, here are 7 of my financial mistakes I’ve made:
Financial Mistake #1
I went bankrupt when I was 20. Compared to what most people go bankrupt on (amount-wise), I feel like a dumb@ss now. It damaged my credit and haunted me for 10 years.
Lesson Learned: ALWAYS try to tackle debt before turning to bankruptcy.
Financial Mistake #2
Buying a $4,000 Tempurpedic bed. Did we really need such an extravagant bed? Nope. Personally, I don’t think it’s much better than our old bed (which we had for like 8 years). Now, my back hurts almost every morning and it’s freaky heavy.
Lesson Learned: More expensive doesn’t always mean something is better.
Financial Mistake #3
Gambling away $500 at a semi-local casino and then gambling away more on our last vacation to Lincoln City.
Lesson Learned: After going to Vegas, gambling other places is wasteful—you don’t even get free drinks. Also, maybe gambling isn’t the best form of entertainment.
Financial Mistake #4
Draining our savings (like 6 years ago) to pay off our debt. That just ended up being a really stupid idea, the debt soon returned and we were out of savings. We solved the debt problem but not the issues that created the debt in the first place.
Lesson Learned: Don’t use your savings to pay off debt. Take the time and work toward it for maximum realization and long-term success, because sometimes it’s good to feel the pain of debt.
Financial Mistake #5
Accepting my 1st car loan for 29-something percent when I was a teenager. WTF was I thinking; why didn’t I know that was bad?
Lesson Learned: Car loan people are out to get me and it’s important to truly understand how much loans will really end up costing you in the long run.
Financial Mistake #6
Buying a desktop computer at Dell and applying for credit with them. Yep, another 29-something percent APR (annual percentage rate), at least I’m consistent. Even though I was adding a little extra with each payment, it seemed to never affect the balance too much.
Lesson Learned: Retail credit can be a bad idea. Save up the cash if I really want something that badly.
Financial Mistake #7
Co-signing on a cellphone for a friend because they weren’t approved. This actually somehow added her and her dad onto my account. That b*tch had no intentions of paying the bill whatsoever, and ended up running my cellphone bill up to $1,500 in 6 weeks.
Lesson Learned: Don’t co-sign. If somebody can’t get approved for something themselves, there just might be a good reason. If you do it anyways, be prepared to pay it all and just consider it a gift.
What are some of you financial mistakes and the lessons you learned?