What's the biggest money mistake you've ever made?
When it comes to money, everybody makes mistakes. The trick is not to make the same one twice. But that's not always that easy. Sometimes, we forget.
That's what prompted Len Penzo to make a list -- quite a long list, in fact -- highlighting some of the misguided and just plain dumb things he and his friends have done over the years.
Some are pretty innocent, but others can and probably have had a lasting effect on both your day-to-day finances and your long-term wealth.
For instance, he suggests, you're likely headed for trouble if you find yourself ...
- Spending more than you earn.
- Failing to read contracts before signing on the dotted line.
- Using payday loans to cover temporary financial shortfalls.
- Signing your tax returns without reviewing them.
- Not doing your research before purchasing extended warranties.
- Going into debt to purchase things that decrease in value.
And the list goes on ....
- Maintaining memberships with monthly payments even though you no longer use them.
- Failing to track your income and expenses.
- Loaning money to friends and relatives.
- Investing without an exit strategy.
- Buying more house than you need.
- Not increasing your RRSP contributions every time you get a raise.
- Relying on OAS as your primary source of retirement income.
- Failing to faithfully maintain your car.
- Carrying comprehensive and collision insurance on older cars.
- Overpaying for car insurance by keeping a low deductible.
- Refusing to treat your household like a business.
What's the biggest money mistake you've made? What did you learn from it? How long did it take before things sunk in?
By Gordon Powers, MSN Money
Photo credit: Cécile Graat
Posted by: Randy O'Connor | Aug 24, 2012 1:40:44 AM
buying General Motors stock when the recession hit and have the company go bankrupt.
Posted by: Howard Neilson-Sewell | Aug 24, 2012 4:25:46 AM
Getting divorced in Ontario. Spousal support based on a short term contract income and living out allowance. Family Law court apparently can not tell the difference between a salary with job security and a short term contract. Finally signed separation agreement and all I had to do was turn over house and everything that had been saved in 40 years of working!
Posted by: Alex | Aug 24, 2012 4:26:27 AM
Biggest mistake? Not saving and investing until I was 35!! I will probably have lost about one and a half million dollars just because I was to busy partying my money away!
Posted by: SiRi | Aug 24, 2012 6:45:41 AM
I got married and lost about $100k. My husband is really bad with money but really good at spending mine.
Posted by: george peters | Aug 24, 2012 7:06:32 AM
i think my biggest mistake was the time, my ex boss, from years back, offered me a chance to buy some stock. the stock he bought was for a newly starting up company, called microsoft. need i say any more.
Posted by: susan schuurman | Aug 24, 2012 7:47:00 AM
Not finding out what kind of financial position our town was in. Property taxes went up 10x.
Do more homework on municipality you're think of living in.
Posted by: d | Aug 24, 2012 8:10:57 AM
My worst financial mistake ever was driving on the Hwy407, it cost me my plate sticker and has put me in financial ruin, as a result of a $300.00 hundred dollar toll bill.
Our government allowed a foreign entity to impose high interest rates to money that was not loaned / borrowed in the first place, to an Enterprise that is not own, by this government.
The 407 bill was not the issue? it was the interest tacked on, and the total lack of communication regarding the extortion methods they the 407 inflicked, when I attempt to contact the 407 to disbute the amount they only wanted payment they do not deserve the amount they are imposing! and are totally umwilling to discuss payment reduction. They are worse than Al Campone for extorting money, they should have put a gun to the back of my head and pulled the trigger I would have been better off.
As no Lawyer here in Ontario has the Guts or knowledge of how to fight the 407!!! thks for reading my message! Dave Murphy another Canadian Ciitizen being shafted.
Posted by: Ron Boehringer | Aug 24, 2012 8:38:26 AM
Getting Married
Posted by: Slamfist | Aug 24, 2012 8:44:37 AM
Buying and not selling Nortel and RIM. and Royal Oak. (all 3 bought because I listened to my dad).
Buying Teck at $3.50 then listening to advisor and selling at $11 when a few weeks later it hit $65.
Trying to time the market at all - trying to day trade when working full time and not doing full research on stocks.
Posted by: Colour of money | Aug 24, 2012 9:29:06 AM
The list linked to states that a mistake was paying into a kids education fund before your own retirement fund.
That is not a mistake, it is a choice of priorities.
Posted by: I dislike GM | Aug 24, 2012 10:23:58 AM
buying a vehicle from GM that I have had for 1 yr and is a BIG piece of crap that has seen more time in service bays than on the road with my family!!
Posted by: Rudy | Aug 24, 2012 10:53:45 AM
Sino-Forest will go down as the biggest fraud since Bre-X.
Incompetent regulators and accountants.
Posted by: Sue | Aug 24, 2012 10:55:09 AM
Sitting at my kitchen table with a cheque for $80,000, reading that West Jet went public and thinking I should try and buy. My biggest regret was not following through with it.
Posted by: Hurly720 | Aug 24, 2012 10:58:10 AM
Buying a house with a friend that we ended up losing to the bank... long story short. Also cosigning a loan with the same friend.
Posted by: K. Miller | Aug 24, 2012 11:15:58 AM
moving in with my boyfriend before either of us was financially ready. I got a new credit card and maxed it out buying things we needed for the house, nothing fancy, just dishes and things. but ugh, it adds up so quickly. im still broke and now cant afford my tuition.
Posted by: JM | Aug 24, 2012 11:21:30 AM
Getting married was the worst...he drained me.
Getting divorced was the best! :-)
Posted by: d | Aug 24, 2012 12:02:15 PM
getting married young, although I do have two great kids because of that. Can't measure that in terms of money however, the finacial cost of marriage and divorce are huge, not to mention the emotional toll it takes on you.
Also, bought nortel at 55 on the way down, yikes, not buying a fixer-upper in kits (westside of vancouver) in 1985 for 88K!!!
Posted by: Steve | Aug 24, 2012 12:04:43 PM
Biggest financial mistakes:
Getting married,
Having children.
Not breaking the law like so many rich people do
.
That said, there is more to life than the pursuit of money
Posted by: Safarigirlinasia | Aug 24, 2012 12:07:59 PM
Loaning money to my gambler father before I was out of my teens, and thinking that there was nothing wrong with it, that it was the right thing to do. The money was never repaid, and I never learned. I often found myself borrowing money on credit to loan to family members in dire straits. Until this year when I found myself finally throwing two former friends out of my house after their "Let us stay 3 months, we're broke and homeless" turned into "what do you MEAN we have to leave?! We've only been here 16 months, paid you minimal rent, and used your heat, water, and electricity to the max, and damaged your house to boot. How could you throw us out?" Finally the other shoe dropped - you can't help people or be generous to them unless you've taken care of yourself first.
Come to think of it, my worst money mistake was being born the daughter of a gambling pauper who didn't know the value of a buck. It's just a bad start in life. You learn early on that your only role is give everything you have or have earned to anyone else who asks for it because they're need is so much greater than yours.
Posted by: michelle | Aug 24, 2012 12:09:47 PM
getting 2 visa's at age 20 worst mistake ever !* i maxed them both out ** refinanced my home to pay them off ** my 1 and only chance ever to fix my mistake ** & it wont evcer happen again ! i learnt my lesson ! i have control now ! lol
Posted by: Frank | Aug 24, 2012 3:24:50 PM
My biggest mistake I made was I did not believie the expert investment Gurus predicting market doomsday previous to 2008 world market collapse when the TSE fell from 15000 to just under 7000 in less than week trading. I am still trying to recover my losses. Another $8k to go is not bad after 4 years. I bekieve it would take another 3 to 4 years before we see full recovery. So much for retirement financial planners who just sit there and wait for you to scream before they protect your investments.
Posted by: e carter | Aug 24, 2012 3:30:24 PM
-buying a chevy
-getting divorced in ontario - 40k and counting every day till i check out
Posted by: simone daniels | Aug 24, 2012 4:36:04 PM
I fell for a sob story told to me by an uncle and an associate at work they weren't even my FRIEND
BUT i will get them back as I've put things in place that they will be susrprised at...Soooo no worries there
You make mistakes when you are young but if they are not corrected...then you SUFFER more
I've DEFINITELY learnt my lessons here
Posted by: Tomita | Aug 24, 2012 6:07:25 PM
Started a charity without enough knowledge on how they work, now I am about to lose my house. Say a prayer for me please.
Posted by: Lindsay | Aug 24, 2012 6:30:48 PM
Married a man that wanted a mother, not a wife and partner!
Posted by: Louise | Aug 24, 2012 6:33:09 PM
I have to agree with SiRi.
Got married.
Husband spends twice as much as he has in his pocket.
Doesn't realize that bills are expected to be paid ON TIME.
BSing his way out of stuff and putting me in the middle of his problems.
Didn't tell me that he was in bankruptcy when I met him, and now I have to file one, and this is his second after 20 years.
He opened his own business, was getting heavily into debt, and expected me to bail him out after my parents passed away with my inheritance.
AND had to sell everything of mine; not his; with the excuse "I need the money or I'll lose my business."
No wonder I'm stressed and depressed all the time.
Posted by: Linda | Aug 24, 2012 8:08:54 PM
Worst two mistakes I made and lost money on were:
Lending money to my sister and her husband so they could buy out a business partner. If they can't borrow money from anywhere else and have to turn to you RUN. Their credit is already in the toilet and good luck getting your money. I had to take them to court, we haven't spoken in over 13 years.
Thinking of buiyng a presale condo? Developer cheaped up on sound proofing and finishes weren't as promised then he went into receivership as soon as my sale completed. I was left with a condo that wasn't finished, trades with liens and legal issues to no end. t took me two years but I finally ended up selling it for less then I paid. Never again!!
Posted by: libbybit | Aug 24, 2012 9:47:51 PM
Getting married!!!!!
Posted by: Rick | Aug 24, 2012 10:17:06 PM
Getting married....now divorced and lost it all!!
Posted by: SS | Aug 24, 2012 10:54:04 PM
Selling my 400,000 shares of Allana Potash at 43 cents the same day it got a top pick recommendation on BNN`s market call show. Within a month it climbed to $2.50, Instead I got caught up in the rare earth hype and lost 75% as I watched in horror as Allana soared to an all time high. It`s funny how they dislodge your head from your rectum in the ER