I readily admit that I’ve made a substantial amount of financial mistakes. In fact, if I didn’t, I probably wouldn’t have much to write about. But there’s one mistake I’ve made that I’ve never shared with you. I’m not sure why I never shared it before (that’s a lie. I completely know why. It’s because I’m ashamed).
What’s interesting about this mistake is that it’s not something I did; rather, it’s something I didn’t do. And by not doing this, I caused myself years of debt repayment and minimal choices instead of saving my money and having options.
So what did I do? I didn’t listen to stellar and practical financial advice when it was put in front of me. For free.
My first job out of grad school was with the federal government, working in the Philadelphia region. In our office was a trained statistician who was extremely friendly and very nice. He and I would spend lots of time talking, particularly about money. He was a few years older than I, owned a house, and really seemed to have his finances in order. He would talk to me about the importance of paying off debt, saving for retirement, and would often share strategies than he and his wife used to manage their money. He even went so far as to create amortization spreadsheets for me for my credit card debt! (I told you, he was very nice.)
Here are some other tips he shared with me:
- Have a budget. He advocated that knowing where your money is going is the first step to having a handle on your finances. He told me that he and his wife had a pretty strict budget but there was always wiggle room for fun and extras.
- Once a month cooking. He would tell me how he and his wife would take one Sunday a month and prepare most of their meals. They would cook chicken and hamburger and casseroles…all kinds of different foods. They would freeze them in portions for dinner and lunches. Not only did he share how this saved them money but time as well.
- Having a 15 year mortgage. He and his wife owned their home on a 15 year mortgage and made extra payments every month in order to pay the house off even quicker. He showed me an amortization spreadsheet (he really liked these) to illustrate how much interest they were saving in the long run.
- Pay off your cars. My co-worker was a big advocate of buying used cars, taking care of them as much as possible and then driving them into the ground. I agreed with him because at this point, I didn’t have a car payment. However, I wanted to buy one and he discouraged me from doing so until my credit card debt was paid off. He did share that if I did buy one, I should purchase a used one and do whatever I could to pay it off quickly. He then told me how much money I would save per month without a car payment.
- Don’t use the credit cards at all. He suggested that I pay with cash because it controls your spending and there’s no interest. He made the point that when you pay for something in cash, the payment is done. It doesn’t crop up on your later in the month. He did say that if I have to use a credit card, pay it off in full.
I think we all have done something similar…nothing to be ashamed of.
Money mistakes are the kind I would not repeat if I could do over, for the “experience.” I wish I had done all those things too. Luckily our 30s are the new 20s so maybe I do have a second shot?
John | Married With Debt recently posted…The Goal of Work is Retirement: Rule 10
My biggest mistake was paying for things that have no value 2 years later. That, and buying people things.
Marissa @ Thirtysixmonths recently posted…Farmers’ Markets for the Win!
It’s easy to look back and think about what you should have done, but the important thing is that you are now moving forward. It’s like that saying, right, “the best time to plant a tree is 10 years ago. the second best time is today.”
It’s funny, I sometimes let my personal finance nerd out and I wonder if people think I’m an old lady trapped in a 20something’s body!
Well Heeled Blog recently posted…5 Tips for Sane & Stress-Free Wedding Planning
everyone has these mistakes. If I had only listened to my father, the few times he actually talked to me about money.
Hey, at least you know now! And I’m probably the crazy person who gives advice with no one listening also haha
Michelle recently posted…Spending, Life, Income and Food Updates… 5/7/2012
We re-financed last year into a 15 year mortgage. There have been times since that I’ve thought “Man, the $500 bucks more a month we’d have if we’d have done the 30 year would sure be nice to have”. Then I read posts like this and get back to knowing that we made the right choice!
Money Beagle recently posted…Making It In Diapers Without Amazon
I made a lot of mistakes in my late teens, because I got my first credit card..and then my second. I ended up thousands of dollars in high interest credit card debt and no real plan to get out.
Daisy @ Add Vodka recently posted…Get Motivated To Get Out Of Debt
I’ve made all those mistakes and more.
Tonya recently posted…Weekly Money Check-Up 5/7
“I would have had the freedom to have the life I want.” — how many times I’ve thought this exact same thought! I would always think, “if only I didn’t have debt…” Why is it that when we’re young, we just don’t have our ears open to sound financial advice? Somehow it feels like we have forever to make good financial decisions – until it’s painfully obvious that we don’t. Thanks so much for sharing your story and don’t feel ashamed because we’ve all made the same mistakes!
Shannon-ReadyForZero recently posted…How the Debate Over Student Loan Interest Rates Affects You
We all have our share of mistakes in the past. If I were in your case, I would have thought the same thing. Why would I listen to a 27-yr old talking about wisdom in finances that seemed to be coming from an old man?
Well, experience teaches us the lesson. But it’s a hard blow. Life is a lot better if you learn from others’ experience that learning from your own mistakes… so true?
I guess that is human nature. Stubborn at times.
Best regards,
Belinda