Posted on 02/13/2025 5:23:02 PM PST by aquila48
Making Financial Mistakes is a natural part of life. Everyone does it, from young children to experienced adults. There’s no need to feel ashamed or embarrassed when you make a mistake. Instead, view it as an opportunity to learn and grow. After all, making mistakes is how you become better at everything you do.
-Not Saving For Retirement
-Borrowing Money From Your 401k
-Spending More Than You Earn
-Not Having Enough Insurance
-Investing In Risky Stocks Or Schemes
-Not Having An Emergency Fund
-Taking Out Loans You Can’t Afford To Repay
-Marrying The Wrong Person
-Avoid These Financial Mistakes At All Costs!
(Excerpt) Read more at yourmoneytoday.net ...
They forgot the most important financial mistake of all to avoid, being born into a poor family.
You mean like JD Vance??
I can agree on all points except insurance. Keep in mind that insurance company is making a bet with you that you will collect much smaller amounts from them compared to premiums you will be paying out all your life.
I never bought collision insurance since first new car in 1964. I am good defensive driver, never had an accident in 64 years of driving in places like Chicago (37 years of 70 miles round trip to work every day through entire city of Chicago), I made the right decision to buy only required minimum liability insurance. I can buy 2 new cars with the money saved. Currently I am skipping home insurance since fire hazard odds are extremely low in a 5 year new house. If house burns down to ground, I can build a new one with savings. In the meanwhile I am saving 4 figures every year.
I borrowed from my 401k, invested it in risky stocks, and now, I self-insure.
Guess I did it all wrong, huh?
Marrying the wrong person is the most important one.
You can make every mistake on the list and muddle through—but if you marry the wrong person you are toast.
When I was a lot younger I borrowed from my 401k to buy a house—just sick of renting.
Needless to say that turned out to be a ridiculously wise decision.
Well, I did for get the "sarc" tag, but if you want to cherry pick, I'll meet your excellent exception to the rule, and raise it with all of the instant millionaires that made their fortunes in risky investments, AKA poweball winners.
But my general point is how most of that article is basically saying that the being unlucky is the biggest financial mistake you can make.
Like being underinsured.
Tell that to someone with cancer who can easily outspend their maximums to survive.
Or people who live well within their budget and then get their identities stolen by an illegal aliienand go bankrupt trying to clear it up (this happened to me, but so far I have been able to avoid too much financial damage, and it was due to an IRS leak !).
Or the guy who shoots an intruder trying to kill his family and ends up losing his home due to a wrongful death civil judgment.
Other than living with your means and saving for retirement, I think that article is ridiculous.
Me took, the rate of return on buying a home almost certainly outperforms any of the options you have on your 401K, and you can usually deduct the mortgage interest.
“Marrying The Wrong Person “
That is the hardest!
My mother went though 4 husbands.
I despised her for her inability to adapt
and the Schiff she drug me through.
Y’all don’t speak ill of the dead but
she died a lonely old lady, with no family around
for comfort. My dad died with a house full of family.
What did I learn, I’ve been married to the same woman for 47
years, My house gets invaded by Hanai nephew and nieces
daily, If die at home, I won’t be alone.
God and Jesus will be here also.
I have borrowed from the 401K. I pay myself back the interest. Better option than paying all that interest up front to the lender. One look at an amortization table and the author might change his mind, although I suspect “borrowing” may actually mean “withdrawal” in this case.
There’s nothing wrong with being poor. The mistake is staying poor.
All true—but more importantly I felt I was just throwing money away on rent at a time in my life where I needed to build some equity/wealth.
I have been poor. I hated it.
Lol.
Shooting from the hip but by sad experience: Do not hire an unlicensed contractor by word of mouth for a home improvement effort.
>> You mean like JD Vance??
Heh. Touche!
Spending money on depreciating assets, e.g., cars, tats, big screens, fancy phones is a bad decision.
“Marrying the wrong person.”
Did that once.
Throwing out exceptions as if they are the norm is the WEAKEST form of argument.
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