Lessons Learned Archives

April 1, 2022 Lessons Learned

Building on Good Money Decisions

Question marks Today I’m going to cover a fun topic – building on good money decisions! I’ll cover:

What qualifies as a money decision.
What the best money decision I’ve ever made is.
How to build off good money decisions.

What qualifies as a good money decision?

To me, any financial decision that sets you on the path to financial success is a good money decision. These are some examples of good money decisions:

Buying a house well below the amount of mortgage you’re approved for. With house prices these days, that’s easier said than done!
Having a budget or a way to track your spending. Keeping on top of how much money you have going in and going out is always a good money decision.
Taking on a side hustle or getting a raise at work.
Sit down with your partner to discuss finances and ensure you’re on the same page regarding saving and spending.
Learning how to separate your needs from your wants.

What’s the best money decision I’ve ever made?

I’d say that I think the best money decision I’ve ever made was paying off my house as quickly as possible. I bought a house with a reasonable down payment and a modest mortgage. My husband and I were both working and had no kids, so we could focus on paying down the mortgage as quickly as possible.

I choose bi-weekly payments and then make a lump sum extra payment yearly. This is an excellent option if you’ve the self-discipline to put aside extra cash and not spend it. If you don’t have the self-discipline to put aside cash, you may prefer to look into options like accelerated mortgage payments.

This is my best decision because it gives us so much financial freedom! When we had to deal with increased expenses and a decreased income, we weren’t strapped for cash because we no longer had to pay a mortgage.

How do I build on a good money decision?

As with bad money decisions, moving forward on a good money decision is very individualized. These are just a few examples:

If you’ve paid off your house or car, resist the temptation to upgrade unless you need to.
If you’ve put aside money to invest, be sure to do your research before buying any investment.
If you’ve paid off debt, don’t run it up again!

Tell me about the best money decision you’ve ever made!

Let me know the best money decision you’ve ever made and how you accomplished it!

December 15, 2021 Lessons Learned, Uncategorized

What’s your biggest money mistake?

I know it’s not the most fun topic to think about. But just about everyone has made a money mistake.

Today, I’ll talk about:

What qualifies as a money mistake?
What I consider my biggest money mistake.
How to move on from a money mistake.

What qualifies as a money mistake?

A money mistake isn’t something small like dropping five bucks on the ground and not noticing until later! Instead, it’s something big, like forgetting to pay a bill for months. Here are some examples of money mistakes:

Transferring a balance to a zero-interest credit card but not paying off the balance before the interest rate increases.
Letting a bill go to collections when you had the resources to pay it off.
Not knowing how much interest you owe on a debt.
Jumping into a “hot” investment opportunity without really checking it out.
Buying more house than you can afford!

These are just a few examples of money mistakes.

What do I consider my biggest money mistake?

I’d say my biggest money mistakes are as follows:

Spending little bits of money on impulse shopping here and there. I always feel like I NEVER spend money except on things I truly need, but my credit card statements at the end of the month tell another story.
Sticking with a stock too long. I was lucky enough to work at a company during the tech boom and bought stock when it went public. But I got greedy and hung onto the stock, thinking it’d keep going up and up. So while I did make a profit, I could have made more if I’d cashed out earlier.
Sticking with a financial planner for years. He did very little for me and talked down to me. Much happier now that I just do online investing.

How do I move on from a money mistake?

That’s a great question that there’s no easy answer to. It depends on the mistake and, of course, how severe the damage is! Sometimes, it’s just forgiving yourself for making a mistake and moving on. In other cases, you need to consider selling a bad investment or paying off a bill and fixing your credit record.

There’s no one-size-fits-all solution, but your best bet is to determine what went wrong, what your course of action should be, and then get moving!

Let me know about your biggest money mistake.

As the saying goes, misery loves company! It’s always nice to know you’re not alone when making a money mistake. Tell me about your biggest money mistake in the comments.

July 1, 2020 Lessons Learned

Five Popular Money Quotes

01It’s summer – which means it’s time to slow down and relax. Where I am, most things are open – so I’ve been able to go swimming and go to parks and splash pads. And of course, buy ice cream treats – one of the most important parts of summer.

So, I’m going to do a little bit of a lazy post today to celebrate summer – I’m going to put up five popular money quotes that I like.

Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like. –Will Rogers
I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. –Warren Buffett
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery. –Charles Dickens
If all the economists were laid end to end, they’d never reach a conclusion. –George Bernard Shaw
Money is a terrible master but an excellent servant. –P.T. Barnum

These are all great quotes – a mixture of investment advice, humour, and day-to-day spending advice.

What’s your favourite quote or saying about money?

June 1, 2020 Lessons Learned

4 lessons we’ve all learned during the pandemic

One thing I can say for sure is that we’ve all been spending a lot more time on our own or with just our family members for the past few months. I think it’s been a challenging adjustment for everyone, but we’ve definitely learned a few things. Here are four lessons I’ve learned during the pandemic:

What I can do without
How to share
That it’s important to buy local
What really matters

1. What I can do without

I’ve learned that I can do without a lot. Before, I took things for granted – that I could buy whatever I need whenever I needed it. That if I wanted a new book and didn’t want to buy it, I’d just go to the library to get it. If I felt like picking up dinner or going to the movies, I could. Now, I can do most of those things again – but it takes a little more planning.

2. How to share

I was lucky enough to pick up 1 container of Lysol wipes in mid-March. The limit was one per customer. Fortunately, it was a big container so I could share it with my parents. I’m so lucky I found it as they were sold out for months after that!

3. It’s important to buy local

I think I’ve always taken it for granted that someone would buy local – just not necessarily me! I’ve realized how critical it is to support local businesses as they don’t have the cash flow to sustain themselves over the long run if anything goes wrong – unlike big box stores. Plus they are part of the community and more likely to give back. So I’ve tried to focus on small businesses more over the past few months.

4. What really matters

I’ve come to appreciate how lucky I am to have a flexible job, and that I can be safe at home to work and take care of my son. I’ve also come to really appreciate my back yard! I didn’t use it much before COVID-19, but it’s been so nice to have somewhere to go that I could be outside and not worry about masks or physical distancing.

The Takeaway

I’ve learned a lot over the past few months – and how to focus on what is and isn’t important. It’s amazing how much we all take for granted until it’s suddenly taken away.

What’s something you’ve learned?