Comments on: Squawkback: What Were Your 3 Worst Financial Decisions?

By: Laura

Laura — Sat, 10 Oct 2009 17:28:50 +0000

This could take a bit of time. Biggest financial mistakes are my student loans. I decided at 22 I should go to university without really knowing what I wanted from it. I went away for 1 year and had about 9000 in student loans. Then 2 years later going to private career college that was way over priced. That was another 16000. Needless to say it has taken me 10 years to pay it off. With being self-employed the whole time, I was only paying mostly interest. I feel like I’m a decade behind in financial situation. All I can do now is try to be smart as possible with money in the future. I never want that feeling again.

By: Warren

Warren — Tue, 15 Sep 2009 03:41:22 +0000

I had lived on my own from the time I was 17, never having money for a car, or time to think about getting one (or even my driver’s license).
Shortly after I turned 25 (early 2008), I got my driver’s lic. and decided I needed a car. Without looking at price i decided which car I wanted (based on reviews, style, etc)… found the car at a price much lower than the going rate… FANTASTIC! I was approved for a loand and I bought myself a fully loaded upgraded engine – year and a half old car.
THE PROBLEM: I had never financed anything before and never ran a major credit card and really wanted this car so everyone from the insurance agent to the salesman to the financier saw me coming…
1st mistake: Buying from a used car lot and allowing the them to bully me into the extended warranty (If I didn’t buy the warranty for $2000, they would have to make the money by increasing the price as if the interest rate of the loan was 2% higher)… I should have bought from a reputable dealer and been willing to walk)
-2nd mistake: Agreeing to take a loan on a car at 23% interest… Can you imagine $539/mo for 7 years for a North American mid-sized sedan
-3rd mistake: not reading the fine print… My $15,750 car plus $1250 in admin fees and whatever plus $2000 in extended warranty was going to end up costing me $38,000 by year 7 and was actually 24.5% rather than 23

I loved this car and drove it proudly… paying nearly $1000/mo in payments, insurance, and fuel alone, then the economy went to heck and I lost my job… Thank God I was living in Alberta at the time and they have a seize or sue legislation, so I walked from the car and will suffer the perils of a poor credit rating for the next several years.

This was a huge series of huge mistakes, but wow have I learned a series of invaluable lessons; which are everything from making purchase decisions for the right reasons to do i really need a next near brand new car if i’m going to have one?
I have recently moved to Victoria, BC and am actually glad I don’t have the car anymore.
Since getting rid of the car (and moving primarily to walking and cycling) I have lost over 20 lbs and have never felt better.
If I do get another vehicle again soon, it will definitely be for cash and be alot more economical (Who needs to upgrade from a 4 to a 6 cylinder anyway? lol)

By: Bethany

Bethany — Fri, 11 Sep 2009 17:43:18 +0000

Lessons learned
1. Pay cash. Don’t use the credit cards no matter what reward system they tempt you with. If a big thing happens, like you lose a job or a spouse or there’s major recession, like now, you are debt free. Also, if you don’t carry heaps of credit card debt, your credit rating is SO much better if you have to get a loan for a big item such as a car or a house.
2. Keep reviewing your finances regularly. Learn all about your own bills & finances. Pay all bills in full when they come & don’t get behind. Be sure to allot an amount into a savings account as part of your monthly payments. If you are married, both of you should know all about all the finances in case something happens to one of you.
3. No matter how good a deal sounds, take your time & do your own research & get lots of estimates & information before making a decision & handing over money. There are lots of smooth talkers & scammers out there who are only too happy to help you part with your money. “If it sounds too good to be true, it probably is” Stand up for your own financial life. If you don’t, no one else will. Don’t be embarrassed to say “I don’t have the money” & walk away.

By: Bethany

Bethany — Fri, 11 Sep 2009 17:18:24 +0000

1. bought a house without learning about markets – bought high – had to sell when markets were low – dumb, dumb, dumb
2. bought a house when I already had lots of other debt to pay off – hadn’t saved for down payment – borrowed that too
3. didn’t set a fixed amount into a savings account as untouchable every payday right from when I started to work

By: Shaniqua

Shaniqua — Tue, 08 Sep 2009 20:18:16 +0000

1. Deciding to sell makeup and skin care (think pink) as a home business full-time without earning sufficient monthly income from it to pay my bills and attend all the company functions that were expected. Therefore racked up HUGE credit card debt.
2. At the same time, deciding to live alone.
3. Then deciding to move to a MORE expensive apartment.
Five years later have paid off $28G in debt, and have nearly that amount in savings/pensions etc.

By: Suly

Suly — Mon, 22 Jun 2009 21:33:17 +0000

My biggest mistake was making monthly payments on a brand new car in high school. All I did was drive this car to my job at McDonalds and I worked at McDonalds only to pay for my car. I was literally and figuratively spinning my wheels.

Second biggest mistake was getting a revolving line of credit in university and lived beyond my means. Luckily, instead of counting sheep to get to sleep, i counted the days I would be done paying off my massive loans(yes Squawkhawk – more than twice what you owed) and did so in a little over two years.

My current biggest problem is shopping at expensive grocery stores like Whole Foods. Their paper bags do make good greenbin (compost) bags.

By: Brad Fults

Brad Fults — Thu, 22 Jan 2009 19:50:04 +0000

1. Taking a post-graduation vacation to Amsterdam. The trip was fantastic and well-deserved, but it was financed entirely on a credit card.

2. Running up credit card debt to the tune of $20K after college.

3. Buying a fantastically fun but grotesquely expensive car after college. At least I got out from under it with little penalty and am now carless. Hooray for BART.

By: fredlet

fredlet — Thu, 08 Jan 2009 19:53:55 +0000

Just a follow up… I’m not advocating injudicious pet adoption either.. know when you can or can’t afford a pet.
But seriously, don’t kill them just because they are inconvenient either.

By: fredlet

fredlet — Thu, 08 Jan 2009 19:52:04 +0000

Actually I’m a little horrified by people who get pets and then consider them a financial liability… and completely horrified when people say that they would put their pets to sleep when they become inconvenient financially.
Please don’t get pets if you even remotely consider the financial aspect more important than they are. There comes a point where you have to decide to save your money on other things instead of killing your animals out of miserliness.

By: Done To Zen » 3 Worst Financial Mistakes

Done To Zen » 3 Worst Financial Mistakes — Fri, 07 Nov 2008 13:25:33 +0000

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