We all do dumb stuff with our money. Even when we understand the mistakes we should avoid, we still make them. This list is compiled not just from what I see but mostly from what I’ve done! The harshest lesson is to make your own mistakes but it will save you some dollars if you can learn from others.
Here’s my list. What would you add to it?
- Not paying off your credit card every month (unless of course you like paying 17% interest to the bank)
- Buying shit you don’t need (especially when it’s on sale so you can “save” money)
- Buying a stock after you read about in a “Best Stocks to Own This Year” article
- Buying a stock because your mate knows a guy who knows a guy on the board and they are about to….
- Watching a 24-hour business channel to form you view of where markets are headed
- Thinking anyone knows where markets are headed
- Investing your retirement account in mostly cash/safe assets in your 20’s or 30’s
- Trying to save whatever is left after all your expenses instead of saving first
- Having no idea how much you are spending and where it goes
- Not taking advantage of the tax concessions available to you
- Smoking – a pack a day at $22 is $8,000 a year. Enough said
- Being up to your eyeballs in debt because everyone says you “have to get into the property market”
- Using the maximum a bank will lend you as a guide to how much you should borrow
- Poker machines
- Thinking more money will bring/buy you happiness