Tag Archives: money mistakes

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worst financial mistakesAnyone can make a mistake. They're part of everyday life. Financial mistakes, however, can lead to problems for years to come if not corrected soon.

After talking to financial experts and others who have either experienced or seen other people make the worst financial mistakes of their lives, we compiled the following list of 25 of them. Many are common after graduating from college and starting a financial life on your own, but they can still happen to anyone at any age.

We should also note that these worst financial mistakes aren't listed in any order. We'll leave measuring their importance to you:

25 Worst Financial Mistakes

1. Not going to college

The average starting salary for a high school graduate is about $28,000. That figure almost doubles to $48,127 for college graduates in the class of 2014 with bachelor's degrees, according to a salary survey by National Association of Colleges and Employers. Starting your working life by being that far behind in pay is one of the worst financial mistakes you can make.

2. Not paying off student loans fast

The average student loan debt for a college graduate is $28,400, according to the Institute for College Access and Success.

For a college grad who is earning some real money after four or more years of living like a student, it can be tempting to spend much of their new income before paying off debt. That's one of the worst financial mistakes a graduate can make, says Alfred Poor, a college speaker and author of books about problems young people are having in the workplace.

"If college graduates tighten their belts and lower their expectations, and live like they only have the high school diploma, they will rapidly pay off their average $27,000 in student loans," Poor says. "If they spend their whole salary on a more comfortable lifestyle, they could be struggling to pay off that debt for decades, and end up paying much more in interest."

3. Paying off student loans too quickly

Paying off student loans quickly can also have a downside, says Steven Fox, a financial planner in San Diego with NextGenFinancialPlanning.com. If they use all of their extra income paying off student loans, they could be in financial trouble if they don't put some in an emergency fund and lose their job or get in a car accident and have unexpected medical expenses, Fox says.

"They should really think about whether they should pay off their student loans as fast as they possibly can once they get their first job if it means that they're doing so at the expense of not saving or investing anything," he says. "Ending up with zero debt is good, but ending up with zero savings is very bad."

An emergency could lead to borrowing money at a higher rate than what they were paying on student loans, says Fox, who reminds graduates that student loan interest is tax deductible for up to $2,500 for individuals making $80,000 or less without having to itemize.

4. Using max credit card limit

"Just because a bank offers you a credit card that allows you to spend money doesn't mean you should," Fox says.

This goes for all debt, he says. Being approved for a $20,000 auto loan doesn't mean your budget for a car is $20,000. ...continue reading

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9 Ways To Waste Your Money By Being LazyLately, I feel like I haven’t been as frugal as usual.

I’ve been letting little things slip and it’s mostly because I’ve been more lazy about being frugal.

After adding up how much money I’ve wasted over the past month, I’ve realized that the amount has been a few hundred dollars already!

I have been blaming this on the move and the fact that we’re still settling into our new town, but in reality it’s just been because of laziness.

I can’t be alone when it comes to wasting money due to laziness though. I’m sure there are many ways that even YOU may waste your money by being lazy if you think hard enough.

However, let’s change that today!

Below are nine ways you may be wasting your money by being lazy.

1. You waste your money by not negotiating.

You are definitely wasting your money if you do not negotiate any of your expenses. Many things are negotiable. Like I always say, the worst thing that can happen is that someone might say no. However, most of the time they will say yes!

You can most likely negotiate your cell phone bill, your cable bill, hotel fees, medical expenses, furniture costs, insurance rates, and more.

Many things can be negotiated, and many times companies are expecting someone to haggle.

Many people are too scared to negotiate or they just simply forget. You are throwing away hundreds of dollars by not negotiating! Once you get into the habit of negotiating, it gets easier. My top tip is to always remember to be nice. There is no need to bully someone into giving you a discount.

If you don’t feel like negotiating, you could always search for cheaper pricing through other companies as well. An example of this would be to search for a cheaper cell phone plan. There are companies out there such as Republic Wireless where you can get cell phone plans for as low as $5. ...continue reading

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This post comes courtesy of Eric J. Nisall, who writes about pretty much anything he feels like in the areas of personal finance, small business and entrepreneurship over at DollarVersity. So, if you don't like it, BLAME HIM! 😀

Money mistakes. Everybody makes them. Some people prefer to keep theirs hidden from the world so as to not have to admit to them. Me? I will openly share mine. I don't worry about how someone will react at my tale of woe. I've made mistakes, plenty in fact, and the chances are great that I will do so again. Hey, I'm human so it's bound to happen. You can't go through life worrying about what happened last week, last year, or a decade ago; you need to use it as a learning experience and move forward.

If mistakes are supposed to be learning experiences, then I should be a freakin' genius by now. Why do I say that? Well, to be honest my twenties were basically one giant money mistake. I pretty much committed every cardinal sin of financial management, and some multiple times. I'm not proud of what I did, or the situation it got me into, but at the same time, I'm not ashamed either. It helped me get to the point in my life I am currently at.

I'm not sure how it all started, but once it did, boy did it keep going. I was loose with my cash--very loose. Every other weekend myself and my friends would go to our favorite pool hall and simply go crazy. The waitresses loved me., and not in a good way, mind you. They loved me because I didn't care about money. I tossed it around like I was some big shot, like the guys today who you hear about going to the strip clubs and "making it rain". I wasn't that out of my mind, but pretty close. I would buy entire trays of those test-tube shots. I'd order tons of food. I would buy the random people drinks (ok, it was only the attractive women). And, as for the reason the waitresses loved me--I would leave huge tips. It wasn't the most economical way to have a good time, huh?

My home life wasn't much different. I rented an apartment with a friend who was kind of homely. He was very quiet and unassuming, and pretty much kept to himself. I, on the other hand was the opposite: loud and very much out there. When I first moved in, the place was very sparsely furnished. I went out and purchased a 1,000 watt stereo receiver. Then I got a 400-disc DVD changer (like anyone needs to have access to that many movies at one time). I stocked the pantry with tons of snacks and junk. I basically tried to convert the apartment into a mini-club. When the lease was up, I didn't brink that stuff with us to the new place. I put it up on eBay, and started fresh with updated versions of the things I had just sold off. After all, a new place was deserving of new toys (or so I figured).

That was all nothing compared to the last thing I did before I gained some common sense--not to mention some self-control. I wanted a flashy car! No, it's not what you are thinking, I didn't buy a high-end import with all the bells and whistles in it. I went with a Pontiac Gran-Am, but I just had to have the sun roof, spoiler, 17-inch chrome rims and leather. It didn't end there, though. I had black-out tint on the rise and ripped out the stock stereo head unit just to replace it with a stylin' Alpine multi-disc changer with motorized screen and text (back then this was the only model on the market). I dropped $800 just on the head unit. I have to say, that car was the most fun vehicle I have ever owned.

How did I manage to pay for all of that stuff? Was I a rich kid spending mommy and daddy's hard-earned cash? Nope. Did I have some connection that got me a high-paying job that would afford me this life of luxury? Nope. I committed one of the biggest sins of smart money management: I put it all on plastic. Even worse, I didn't pay more than the minimum each month so that I would have plenty of cash to spend on other things.

Was it worth it? At the time, I would say abso-freakin-lutely! Now, however, looking back at the trouble it got me into as far as credit card debt I would say no. But it teach me a valuable lesson and it's certainly a mistake I never plan on making again.

What were your biggest money mistakes?