My Biggest Financial Mistake

Hero

I launched FinanceSuperhero in April 2016 to help others save money, get out of debt, earn more money, and live the best life possible. Send me an e-mail or a comment if I can help you in your journey. Thanks for reading!

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30 Responses

  1. Yikes, that’s one whopper of a mistake. A super sized mistake even. Amazing how fast food mistakes can come back to bite us.

  2. Ahhhhh, FSH. You are still so young and still have so much to learn” (spoken with faux Kung Fu Master accent). So many mistakes to be made and so little time to make them lol.

    I think my best, most recent doozy was about 7 years ago when I had a sales job that paid pretty decent bonuses. Yes, you already know what’s coming next.

    So I got a nice bonus and decided I needed to upgrade my ultra-reliable 10 year old Mazda. Now what does an up an coming financial idiot need? A Mercedes SUV with leather interior etc etc etc. Obviously my bonus wasn’t enough to go new so I found a pretty cool looking used one with tinted windows, mags etc.

    I had it for about 6 months. First the turbo shit itself on a road trip which incurred the extra costs of accommodation, transport home, transport back to pick it up etc. That cost me about $2,500. Then one of the computers shit itself. Another $2,500.

    All fixed!! Beauty……and someone stole it.

    All up, $5,000+ for a car which gave me 6 months of pain in the ass.

    I hope that makes your BK double Whopper with supersize everything pale in comparison. Love the post mate.

    By the way, I’m driving a Mazda again. So reliable hehe

  3. Thanks for laying it all out there! We all make mistakes that hurt financially, it’s all about reducing those as best as possible and learning from them going forward. Thanks for sharing!

  4. That’s one whopper of a mistake. 🙂 Sorry couldn’t resist.

    We all make them, it important to learn from them and correct going forward. We have made several. Overspending for years, never having a plan for our money. We know better now. We continue to improve everyday.

    I’m most excited about teaching my three teenage children these things and see how they do with them early in their financial lives.

  5. Jax says:

    I would not necessarily call this a mistake, but this is probably the worst decision I’ve made from a purely financial standpoint.

    Mr. Beach Life and I met right around the time when leases get renewed in our college town. When we decided that we wanted to live together, we each still had 9 months left on our respective leases. Instead of waiting 9 months, or moving into my apartment (he has a kid and we thought the transition would be easier if it was a fresh start) we signed a lease on a house before we had found anyone to sublet our respective apartments. I ended up paying two months rent on the old apartment and then bought out the remainder of my lease. It probably cost me about $2500 to stop living in a place.

    BUT Mr. Beach Life and I have built a great life together and now live in a house we bought so we don’t have to worry about leases anymore.

  6. Joe says:

    Holy cow, that’s one expensive Whopper! I think a 30 year mortgage is perfectly fine. It gives you more flexibility. You can always pay extra and reduce the interest that way. I like having a little more cash to invest in the stock market.
    My biggest mistake? Probably quitting my job before I could get a separation package… I could have waited about 8 months and receive some kind of package. It worked out so I can’t complain too much.

    • Hero says:

      When I saw that you had commented, I thought you might cite that story as your biggest mistake, Joe. In the end, it is funny how our mistakes have a way of working out OK in the end.

  7. ZJ Thorne says:

    I had a similar problem when I studied abroad. I thought I had paid off my CC in full before leaving, but was a few dollars short. I was gone for five months. My parents said they were checking my important mail for me & I would check in with them. I was shocked to get home and see that the $3 overage had happened and catapulted to the card being closed by the time I was home. I was so frustrated.

  8. I wish I had saved more for retirement when I first entered the workforce. Unfortunately, student loans made that option difficult.

  9. Man I wish $650 was my worst mistake! I suppose that’s how some of us like to learn.

  10. When I first travel back to the Philippines to visit, I used my credit card like I would do here in the US. I didn’t know that there was foreign transaction fee and the exchange rate conversion was bad. When I got back to the US, I saw that my total credit card charges were too high. Figure, it was the foreign transaction and the peso-to-dollar conversion. So, every time I go back to the Philippines, I either bring some dollar to exchange or borrow some money from my sister there who has peso and just give her dollars.

  11. Mrs. PIE says:

    Oh mistakes, mistakes, too many to mention!
    I got my first car when I got my first job. My bank balance was low and every paycheck counted. My car was due for its M.O.T. (an annual required safely check for cars in the UK) and I foolishly took it along to a local mechanic without checking in with anyone for recommendations. I COMPLETELY fell for the ruse when they called me at work to tell me the list of terrible things that was wrong with my little car and needed fixing. Of course, they rattled the list off very quickly with no explanations. Then The price. Oh my! I agreed to it all too and paid! Arrgh! I still feel foolish thinking about it!

    • Hero says:

      Ugh… I’ve been there, Mrs. Pie. Mrs. Superhero and I sunk around $1,500 into a 13 year-old vehicle shortly after getting married. It was a big risk, and I don’t count it as a mistake simply because it worked out well – we were able to drive the car for three more years without any significant repairs. Car repairs are the worst!

  12. I spent years just putting things on my credit card and letting it add up. Sometimes we can go on so long before we realize what a catastrophe it is. My kryptonite is taking my kids to the bookstore (which of course also sells toys) for fun. Never get out of that unscathed.

    • Hero says:

      Linda, I can’t imagine the pressures of having kids and wanting to provide for them while also sticking to a responsible budget.

  13. Sounds like your current mistakes aren’t too bad. We all make them. The trick is not making the same ones twice.

    We didn’t have a will either until we had kids. Actually, our financial planner at the time told us she wouldn’t help us with our investments until we got the will established – tough love!

  14. You already know my investing mistakes so will save you that story again! One of my biggest mistakes was buying Oakley shades, from the Oakley store as a sophomore. I spent 25% of my entire account on them and had no income coming in. The shades are awesome but man were they way too expensive!

  15. Apathy Ends says:

    That’s a rough lesson!

    I don’t even remember how we got by without internet banking, it makes everything so much more convenient.

    My biggest mistake is using student loans to pay for things besides class and books

  16. Mike says:

    we all make mistakes, the key is to learn from them…keep up the great work

  17. The mister and I also regret not getting the 15 year mortgage. We’ve been in this house 11 years, longer than we expected, and that mortgage could be 100% gone in 4 years if only we had stretched just a little bit more. D’oh!

    • Hero says:

      I imagine I will share in your frustration when that time comes for us, provided that we don’t refinance, Jen. Our effective interest rate is good enough due to a first time home buyer tax credit that we will probably just end up making additional principal payments to accelerate payoff.

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