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.

“That money needs to be repaid,” Fox says, “and you are paying a very high cost to borrow it at this stage in life. Spending should be determined by a well thought out budget, not by the size of the line of credit.”

5. Living beyond your means with credit

Building an expensive lifestyle for yourself early in life is possible with credit cards, and is one of the worst financial mistakes anyone can make, says Matt Becker, a fee-only financial planner and founder of Mom and Dad Money.

“That debt will make it a lot harder to pursue exciting opportunities later on, and may even force you to stay in a job you hate just so you can make the payments,” Becker says.

6. Not having health insurance

Young people may think they’re invincible, but unexpected tragedies like a car accident can happen, causing a large financial setback early in life and leading to financial mistakes, Fox says.

Health insurance options for college-age students include staying on their parents’ health insurance until age 26, signing up for their school’s health program, or buying low-cost catastrophic coverage from commercial carriers.

7. Choosing money over mission

We all want to make money, and it’s hard to tell someone to turn down a bigger paycheck, Becker says.

“But you will find much more fulfillment from a job with a mission you believe in than one that simply pays a lot,” he says. “Make sure you’re paid what you’re worth, but don’t forget to make your work meaningful.”

8. Waiting to invest

After spending your first paycheck on something fun, set aside part of your next paycheck for investing, Becker recommends.

“The sooner you start investing, the sooner you’ll be able to say goodbye to that job forever,” he says. “And if your employer offers a 401(k) match, contribute at least enough to get that full match. That’s free money!”

9. Paying credit card bill late

Not making credit card payments on time can be one of the worst financial mistakes anyone can make, says Peter Creedon, chief executive officer at Crystal Brook Advisors.

Credit card companies can bump up interest rates to as high as 36 percent to late-paying customers, Creedon says. Pay your credit card bills in full each month to avoid interest charges.

10. Consolidating credit card balances

Know how your credit card company is going to categorize how your credit card balance consolidation is rolled over, otherwise you might be in for one of the worst financial mistakes ever, Creedon recommends.

“Some companies consider it a cash advance and assessed a slightly higher interest rate and put the amount behind the cards’ balance so the amount takes longer to pay off,” he says.

Develop a cash reserve of at least three months so you won’t have to take on more credit card debt, he says. “Become the bank and pay yourself instead of paying everyone else,” Creedon says.

11. Not asking your parents to cosign a loan

Many young people don’t have a long enough credit history to qualify for a car loan or first home purchase on their own, leading to one of the bigger financial mistakes, says Danna Jacobs, founding partner at Legacy Care Wealth.

Financially strong, mature young professionals with good relationships with their parents should avoid one of the worst financial mistakes in life by not asking their parents to cosign a loan because they want to maintain their independence, Jacobs says. Without their parents as cosigners, they’re missing out on an opportunity, she says, noting that only “financially strong, mature, young professionals” should do this.

12. Not asking for a raise early

Not asking for a raise, promotion or increased responsibility because you only have a short tenure at a firm is one of the worst financial mistakes you can make, Jacobs says.

“You may not get it this time, but when coupled with strong performance, it can increase the rate at which you would be bumped up to the next level,” she says.

13. Not recognizing investment bubbles

Figuring out when to enter and exit the stock market is something even experts have difficulty doing. Guy Smith, a marketing consultant in San Jose, Calif., says among the worst financial mistakes to make, his was not recognizing investment bubbles and therefore cheating himself out of an early retirement.

“I remember the Christmas before the (tech) bubble burst, my Uncle Bob said he had sold all his stock,” Smith says. “He being a savvy businessman, I wanted to know why he bailed. His advice was simple: ‘When you see a lot of people doing a stupid thing, run the other way.’ Had I exited when Uncle Bob did, I would have had $100,000 in cash in my pocket.”

Smith also didn’t act on the housing bubble. He bought a rental home in Florida for $100,000 that doubled in value seven years later. His long-term strategy for the house was to own a home paid for by someone else, so he held on to it. The value dropped and he didn’t sell at the peak for a $100,000 profit.

14. Buying new

Everything depreciates, especially cars, says Rick Sellano, owner of the writing service My Ink Shines. Buying new is one of the worst financial mistakes anyone can make, Sellano says.

He recommends buying used cars with low mileage, gently used furniture and other used items to save money throughout your life.

15. Focusing only on the present

Among the worst financial mistakes to make in life, focusing exclusively on the present is the worst, says John Vespasian, the author of seven books about rational living.

“If you fail to think long-term, you will render yourself blind to the best opportunities,” Vespasian says. “You will waste your money on foolish purchases. You will destroy your motivation to learn complex subjects. And you will surround yourself with the kind of people who are also incapable of thinking long-term.”

“People who focus exclusively on the short term tend to make incredibly stupid financial decisions,” he says. “In doing so, they subject themselves to high stress and anxiety that could have been easily avoided. A man who lacks a long-term perspective in his life will never be able to save money consistently, nor to spend it wisely.”

“Our society places a disproportionate emphasis on purchase that delivery little or zero long-term value. Few people take the trouble to acquire the discipline to think in terms of a lifetime. If you can see yourself living to become 100 years old, and realize what that means in terms of financial foresight, you will avoid making foolish financial mistakes.”

16. Focusing on monthly car payment

A common sales tactic at car dealerships is to get buyers to a monthly payment they’re comfortable with. Many buyers go in with a set amount they’d like to pay every month, and are happy to share that figure with the salesperson, says Jeannine Fallon, executive director of corporate communications at Edmunds.com. That can lead to one of the worst financial mistakes they can make as a car shopper, according to Edmunds.com.

“When you do that, you’re not actually talking about the total price of the car,” says Edmunds.com senior consumer advice editor Phil Reed. “You also need to take into consideration the interest rate, as well as the length of the loan.”

The dealer may suggest a longer loan so the car fits in your budget, but a longer loan also means you pay more in interest.

17. Not having renter’s insurance

Focusing on the present, however, can be important. Not having renter’s insurance was one of the worst financial mistakes that Eric Narcisco, CEO of EffectiveCoverage.com, made when he was young.

“After college, when I was living in an apartment in Jersey City, I came home from work one day to find everything I owned lost to a fire that my neighbor had started,” Narcisco says. “I didn’t have much at the time, but since I was just out of college I didn’t have much money to replace those things, either.

“I had convinced myself that I didn’t need renters insurance because I didn’t own anything to speak of. If a policy had been in force, I would have been able to replace all of those things quickly and move on with my life instead of spending years in the process just to get back to where I had already been.”

18. Not saving for retirement early

Layton Cox, a financial advisor at My Pathway in Tucson, AZ, says one of the worst financial mistakes someone can make is not saving for retirement earlier in life. It’s the top regret and one of the many financial mistakes Cox says he hears from people over age 45.

Saving $2,400 annually at age 25 with an 8 percent return will result in more than $52,000 saved at age 65 — 20 times what was originally saved, he says.

Waiting just 10 years longer to “get your life together” will grow that same $2,400 to a little more than $24,000 at age 65. That’s half of what you would’ve saved at age 25, but still 10 times what was originally saved.

“The problem is, most people don’t save for retirement until they are in their late 30s to early 40s,” Cox says. “In their 20s, they save for a downpayment, vacation, or they are too busy paying off student loan debt. In their early 30s, they are saving for a bigger house or children’s education.

“It’s not until the kids are about to leave the house that most Americans save for retirement. This ruins their chance of benefiting from compounding interest.”

19. Taking on more risk than you can afford

As Bernard Kliban once wrote, “Never Eat Anything Bigger Than Your Head,” which is good advice for investors in terms of risk, says Jim Pearce, CIO of Baton Investing in Falls Church, VA.

Don’t trade options, buy penny stocks, or speculate in commodities unless you really can afford to lose every penny, Pearce says of financial mistakes to make when investing.

“Too many investors try to play ‘catch up ball’ by engaging in reckless investing that usually ends up in a wreck, putting them even further behind the eight ball,” he says.

20. Mimic other investors

This is partly in contrast to #13, but mimicking someone else’s investment strategy can be one of the biggest financial mistakes of your life, Pearce says.

“For some reason most people seem to think that anyone else’s judgment is better than their own, so there is a tendency to blindly duplicate what another person tells you they are doing in the market,” he says.

That leads to two problems: (1) they may be lying and only telling you that to impress you, and (2) even if they really are doing that, they may have no idea why they are doing it, either (or doing the same thing you are, and copying someone else).

21. Investing with a friend

Investing in a friend’s or family member’s business opportunity is one of the worst financial mistakes anyone can make, Pearce says. “It’s human nature to want to help the people you care about, but giving them your hard-earned money to capitalize their high-risk business venture isn’t the best way to do it,” he says.

Instead, offer to provide them with a low/no-rent housing situation (if you have the space) so they can live on very little income until their business gets going, or hook them up with someone else who really is in the business of in investing in high risk ventures, Pearce recommends.

22. Pyramiding profits

When an investment is going good we tend to think it will go on forever, so we sink even more money into it, Pearce says. This is sort of like betting double or nothing until you inevitably lose. Instead, set a limit on how much money you are willing to risk on any one thing and stick to it, which could help avoid this and other financial mistakes.

23. Allowing money drains

It’s OK to reward yourself with the occasional night out on the town or well-earned vacation, Pearce says. Those sorts of things don’t help your balance sheet, but provide psychic wealth.

“However, engaging in potentially costly behaviors such as gambling, substance abuse, or simply buying things you don’t really need create ‘money drains’ that rob you of the opportunity cost of putting that cash to better use in something that has value and can sustain you later in life when you really need it,” he says of financial mistakes.

24. Not paying taxes

One of the worst financial mistakes someone can make is not paying income taxes, says Nicole Erwin, a licensed tax professional at Tax Defense Network.

“What many people of all ages fail to realize is the significance of creating or ignoring issues with the IRS,” Erwin says. “If you choose not to file your returns, for instance, a series of undesirable events are sure to follow.”

First, the IRS may file a Substitute for Return (SFR). This allows them to use whatever previous tax information they have on you (no matter how inaccurate) coupled with information provided by your employers to file your return.. This substitute can work to your disadvantage by creating a tax liability that could have been avoided if you’d simply filed accurately, on time, she says..

“If you do wind up with a tax debt and you don’t pay it, you’re really asking for trouble, Erwin says. The IRS can place a lien against you, destroying your credit, or garnish your wages or bank account. If the debt persists, the IRS can even seize your property and assets. And while these are all serious actions, the worst is yet to come.”

“The problem with unpaid tax debts is they tend to become inflated in a short period of time,” she says. “The amount you originally owed quickly mutates with the addition of penalties and interest. What you end up with is a staggering tax bill which has destroyed your credit and haunts you for years.

“By the time you realize just how big of a mistake you made, you’re not young anymore — and you’re in a conceivably worse position to do anything about it. None of this has to happen, of course. If you have a tax debt, consult with a licensed tax professional who can ensure your youth is spent on more entertaining pursuits.”

25. Not having a personal financial advisor

Just as everyone needs a family physician, a financial practitioner is needed every bit as much, recommends Rob Drury, executive director of the Association of Christian Financial Advisors. Without one, you could be headed to other financial mistakes.

“A financial advisor’s job is absolutely identical to the doctor’s; he assesses wellness, diagnoses illness, prescribes cures, and designs wellness programs,” Drury says. “He simply performs these functions in the financial realm rather than the medical.

“Employing a qualified advisor and being accountable will prevent one from committing most financial mistakes. Most basic planning functions can be performed at little or no cost.”

That’s our list of the worst financial mistakes to make at any age. What are some of the worst financial mistakes you’ve made?

25 Worst Financial Mistakes Anyone Can Make is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

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.

Related article: Saving Over $2,000 A Year With Republic Wireless Review – How Much Money Could You Save?

2. You aren’t trying to improve your credit score.

Improving your credit score does not have to feel like an impossible task. I believe that a person should try to improve their credit score because it can impact so many parts of a person’s life.

Whether you want to buy a home, obtain a job, rent an apartment, sign up for utilities, or something else, your credit score can make a big impact.

If you are lazy and don’t care about your credit score, it can make things much more expensive. You may have to pay larger fees so that companies are comfortable working with you, you might have to pay higher interest fees, and more.

For example, when I was signing up for utilities for our current home, every company told us that we didn’t have to pay a deposit and certain fees because we had a good credit score. This saved us a few hundred dollars!

Related article: How Your Credit Score Affects Your Life + Credit Sesame Review.

3. You don’t care what your money is earning.

Many people don’t think twice about where their money is, especially if you’ve belonged to the same bank for several years. However, by searching around, you could be earning more money if you placed your money in an account that has a higher interest rate.

One thing I have been completely lazy about and too embarrassed to admit is that we have been putting off looking for a better place to put our emergency fund.

While I am all about an emergency fund being in a liquid and low risk account, I know that if I searched around that I could possibly find something with a somewhat better interest rate.

I don’t even know what the interest rate is for the account that our emergency fund is in. All I know is that it’s very low and that I earn very little on it.

Now, I know we won’t get rich by switching the account that our emergency fund is in, but we could possibly be earning a few hundred dollars extra each year. That’s just free money that I have been too lazy to search for!

4. You waste your money by not checking anything.

Making sure to double check financial documents is very important. There might be a mistake that is costly, and who wants to pay for a mistake?

Some places you should check for errors include:

• Your credit report. Credit reports sometimes contain mistakes and this can lower your credit score. This can cost you money in that you might not get the lowest interest rates available. You should check your credit report at least one to two times a year.
• Refunds. If you ever ask for a refund, you should make sure that the refund is actually given.
• Credit card and bank transactions. You never know if there might be a duplicate transaction or if someone might have stolen your credit card. Checking your transactions regularly can help you catch errors quickly so that you can get your money back.
• Bills. You should check utility bills, medical bills, and more on a regular basis. There are errors on bills all the time, and you might be losing out on money that is yours.
• Automatic payments. While I try to set everything to be paid automatically, I still check to make sure that the correct amount was taken. If anything is off then I will look at the bill to see what was wrong.

5. You are lacking organization skills.

When we moved, I threw all of our important financial documents and bills into one big box. This was a big mistake because everything somehow got disheveled in the move and now everything is a huge mess.

While this didn’t cost us money, it almost did. I almost forgot about a few bills and if I didn’t have email reminders set up then I most likely would have forgotten about them. Like I’ve said before, I have a horrible memory, and with everything in such a huge mess it wasn’t a good thing for me.

If your things aren’t organized well enough, you may have to pay late fees and/or reconnection fees (if a company turns off any of your services).

This can then impact other areas of your life as well if you forget to pay your bills. It can lead to interest fees piling up and it may even damage your credit score.

I highly recommend that you check out Personal Capital (a free service) if you are interested in gaining control of your financial situation. Personal Capital is very similar to Mint.com, but 100 times better as it allows you to gain control of your investment and retirement accounts, whereas Mint.com does not. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation, your cash flow, detailed graphs, and more. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more, and it is FREE.

There are many other ways you may be wasting money by being lazy.

This list could go on forever of different ways to waste your money by being lazy.

I’m not perfect when it comes to money and I know no one else is either. Sometimes going the more convenient way may seem nice, but it can cost you a lot of money over time.

Other ways you may be wasting your money by being lazy include:

• Skipping routine car maintenance. Many skip car maintenance because they think it will save them money. In the long run though, it will most likely cost you money because you may have to pay expensive car repairs for when things go wrong. Car maintenance is needed if you want your car to run smoothly and reliably.
• Not searching for coupons. Searching for coupons and rebates is an easy way to save money. I usually just type in “Company Name + coupon code” and find many available discounts. Also, you should check out Ebates if you haven’t yet. You can earn cash back for shopping online, and it’s FREE! Plus, under my Ebates link, you will receive a free $10 gift card. Before I do many things, I often try to find a coupon online first. There have been many times where I have completely forgotten to use one. In fact, the other day I forgot that I received a Best Buy coupon and that ended up costing me $60!
• Eating pre-made food. The other day I was really craving watermelon and, of course, this came right after I passed nicely sliced watermelon in a small plastic bowl at the grocery store. Well, for about $15, I could have bought about a one-sixth of a watermelon. That is just INSANE! Someone must be buying it for the convenience though or they wouldn’t have it there ready to be bought. If you need to start cooking at home more, I highly recommend that you check out $5 Meal Plan. It’s been a lifesaver for us as meal plans are sent directly to me. It saves me a ton of time!
• Keeping stuff you don’t need. By keeping stuff you don’t need, you are wasting money because you have to pay storage costs. You also could be making money on the stuff you don’t need!

Have you done anything not-so-frugal lately? What have you done to waste your money? What other ways do people waste money?

This article by Michelle Schroeder-Gardner first appeared on Making Sense of Cents and was distributed by the Personal Finance Syndication Network.

Source

Is Your Laziness Costing You Money? is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

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?

Money Mistakes Aplenty AKA Life In My 20s is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.