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.
