Yup, sometimes even I am stupid. In fact, maybe I is more stupider than you (grammatical errors done on purpose…I’m not that stupid). I’ve made some very simple, yet costly mistakes. The problem is they are completely avoidable. Though, no one ever talks about it, these mistakes are all too common.
Here’s a list of just a handful of stupid mistakes I’ve made over the years:
- I spent $4,800 over two years on a gym membership I never used – yikes
- I bought a new car and I haven’t gotten around to selling my old car…it’s been two months. I own it free and clear, so no loan payments but that’s good money sitting in a depreciating asset. I also am still paying insurance on it…yikes!
- I over complicated my credit cards (wanted the airline points) and was dinged with a few late payments though I had plenty of money sitting in the bank – it didn’t affect my credit score but that’s throwing your money away
- As mentioned above, I had plenty of cash sitting in savings accounts and carried credit card balances over a couple of months…because “doing personal finances” was starting to sound as appealing as cleaning out the garage
Though, yes, these are very stoooopid financial mistakes, I have made a few smart decisions too – more on that later.
Personal finance is one of the simplest concepts you have to consider, yet it is astonishing how few do it successfully. Why are some people financially unsuccessful? It’s the same answer to why are some people fat? It doesn’t take a fitness expert to tell you how to get in shape – eat less, workout more. The reason why fitness instructors even exist is they help you do it – albeit by yelling at you, encouraging you or giving you some sort of plan to follow that may or may not work. The problem is, do you do it? And when you finally do it, how do you do it sustainably?
Two very bright people who died poor
- Nikola Tesla – The man who gave us alternating current, radio, wireless technology, neon lamps, and X-rays died penniless
- Thomas Jefferson – He sold his library to Congress in order to not die a pauper (it’s nice to have friends in high places) in 1815 and then a second time to sold at auction in 1829 to satisfy his creditors. This comes from a man who said his most prized possessions were his books
What does this mean?
You don’t have to be as smart as Nikola Tesla to be rich, as you can see, he himself wasn’t rich. You don’t have to be a great political thinker like Thomas Jefferson, as you can see he was haunted by creditors though he inherited much of his wealth.
What stooopid financial mistakes have you made? Write a comment or email me – I read every one!