With 50+ years of living and being weighed down by $414,000 in debt – I’ve could share a LOT of money mistakes with you, but since your time is precious and finite, I’ll limit this scary walk down memory lane to 10.

Let’s first define what is a “money mistake”, it’s basically an error or poor decision related to your finances that can have negative consequences on your financial life. Money mistakes can vary widely in severity, from overspending on unnecessary stuff to failing to save for emergencies or retirement, accruing high-interest debt like credit cards, or making poor investment choices (you heard from a guy at the BBQ about a hot stock tip… those are the worst).

Money mistakes can impact your financial stability, cause enormous stress affecting your ability to sleep and slow down your pursuit of financial independence. The old saying goes, “recognising and acknowledging money mistakes is the first step towards changing them” and making better financial decisions in the future.  Most of the time experience is the best teacher but it’s also the most expensive teacher so please look at my poor decisions regarding money and don’t make the same money mistakes:

1. Not negotiating my starting salaries– when I look back on the jobs I’ve been blessed to have, I cringe at the at the thought that I only negotiated two of my starting salaries. Wisdom does come with age but boy, I could have been so much further down the road, but this is a big one, especially if you are just starting your career!
2. Borrowing from my 401k – it’s never a good idea to borrow from your future self but borrowing for stupid reasons like paying off credit card debt should go down as a total lapse in judgement.  I could have downgraded my life more or got a second job for a few months but instead I pulled the money, paid the penalty and tax bill only to charge those cards up again.
3. Not asking for raises early in my career – I would always wait on my annual review and never be proactive when it came down to my own career. I would wait to see what my manager would do instead of talking to her/him early and often about their expectations and securing feedback so I knew what to work on. I could have also kept a “brag book” of my accomplishments that gave solid evidence of my impact and contributions to the organisation.
4. Applying for forbearances – As I was paying down my debt of $414k, I wanted to postpone my student loan payments for a while (as they were more than my mortgage payment) and I applied for forbearance.  I didn’t really understand that I should have learned about income repayment plans as well deferments. There are real consequences of not being financially literate and this one cost me thousands.
5. Impulsive purchases – I love to travel and I’ve bought my fair share of souvenirs and things that I really didn’t need but thought they looked cute at the time. Months later, I couldn’t even remember why I bought it and it no longer looked cute, so I donated it to my local thrift store. I’ve wasted hundreds of dollars during my initial years of overseas travel.
6. Buying for my fantasy self– I’ve struggled with my weight all of my adult life. I’ve been on many, many, many diets with limited success. It never failed, I would lose 10 pounds and immediately start buying clothes for my future, thinner (fantasy) self.  But it didn’t just stop there – I would buy clothes for a New Year’s Eve party that I would attend in the future. Truth be told, I’m sleepy by 10pm but the fantasy was real!
7. Renting too much house– I was a huge fan of House Hunters International prior to moving to Europe and like many of the participants on the show, I wanted to rent a home in Europe with extra bedrooms for family and friends to stay. Well, I quickly learned that family and friends would not be dropping by weekly or even monthly. It would have been cheaper to save that outrageous rent payment and use the money to pay for their stay in a super nice hotel when they arrived. Boy do you live and learn.
8. Buying a new vehicle – I had a great job and was making more money than I had ever made in my life up until that point, so I thought I DESERVED a new vehicle. I bought my dream vehicle, a Jeep Sahara. She was gorgeous with my custom-made wheel cover that read “Go Topless”.  I felt amazing driving around with the doors off, so cool.‚ When I finally got serious about my finances, I sold my Jeep but had to pay extra cause I was underwater.  New cars lose their value immediately, a very costly mistake.
9. Not investing sooner – I thought only rich people invested in the stock market and I needed to be some uber genius to do that. I have lost out on unimaginable wealth over the decades from being financially illiterate and scared. Fear really is false evidence appearing real.
10. Using a HELOC to pay off debt – While on my debt repayment journey, I found every imaginable short cut to success including what may be the dumbest mistake of all. I secured a home equity line of credit. I used that money to pay off all my credit cards. Yippie, I’m out of credit card debt – right?Nope, I’m the genius that would start using credit cards again and found myself in more debt; only now it’s worse because my home is on the line. Dear Lord…

Like the picture above, I’ve set fire to thousands of dollars over the years, but I’ve forgiven myself and now use that energy to help others hopefully learn from my mistake. Some of you are probably thinking, I would never pay off a credit card and then start charging again. 

I thought the same thing until an unexpected bill came and a family sickness arose and we didn’t have enough in emergency funds for everything, so the credit card got us out of a pinch. Let this list serve as a “don’t do what I did, do better” lesson. 

Thanks for reading and remember, our story is far from over, let’s keep Enjoying the Journey!