We’re gathering a list of the biggest money mistakes people make. We’d like to do a top ten list of biggest money mistakes for a podcast episode. Have you done stupid with some zeros attached? Often these are opportunities to learn but they’re very painful lessons.
Please share your learning experiences with us so we can laugh together at the past and learn together for the future. Chances are there’s someone else out there who is about to make the same mistake. With your help they can avoid those mistakes.
I’ll share one of mine: When I was in college I fell for one of those members-only buying clubs. It sounded good at the time: join the club and save tons on future purchases of pretty much anything. If you found something cheaper than the price they offered, they would match the price and pay you the difference so you saved double. Well I bought the multi-year membership at somewhere close to $1,000 and financed it at (only 1.5% per month) 18%! Then I never bought more than a handful of items through the membership. I think I saved a total of $50 or so for the $1,000 I paid, just to have the privilege of saving money.
My parents were really mad at the time and tried to tell me it was a stupid idea but as a young, know-it-all college kid you know I wasn’t going to listen to them. I was bound and determined to prove them wrong with all the money I was going to save. Well, mom and dad I have to (grudgingly) admit you were right.
Today I know I can save much more by having a budget, watching for deals, and paying with cash. Cash is king and it goes a really long way in negotiating bargains. If negotiating isn’t your style, simply watching for deals can save you tons instead of buying at retail price.
So now that I’ve shared mine, I’ll open it up to the rest of you: What are some of the biggest mistakes you’ve made with money, and what are the lessons learned from them? I have plenty more but I want to hear yours first! (Note: I just might share your money mistake on the podcast in an effort to help other people).