This article will discuss the biggest financial mistakes I have made over my lifetime. Most of them are common mistakes that many people make.
Falling into debt is NOT one of them if you think I am going in that direction.
Failure to start investing at an early age.
I did not start investing in my twenties. Part of the reason is that I didn’t make much money in my twenties. Stashing away and investing even little chunks of money early enough can take advantage of compound interest and turn into a substantial amount of money.
Contributing too little to my 401K plans.
I usually only invested up to the company match. That is the minimum that one should invest. That 401K can save you on taxes and grow into a nice sum of money. Invest what’s comfortable into your 401K and take advantage of it.
Remember that you can always change the contribution amounts as needed.
Keeping way too much money in my bank accounts.
Nice problem to have!
It was great that I was able to save money most of my life. I grew my bank accounts, but I never put the money to use. I already had enough for emergency funds and interest rates on bank accounts have been pathetically low for many years now.
Don’t be too nervous about investing money. Put it to work for you once you have an emergency fund and a little extra for other larger expenses that come up in life. And with inflation rising, that cash is going to lose value over time.
Getting hooked by the lure and fantasy of becoming a millionaire trader
This mistake probably cost me the most. I spent thousands on trading programs and learning how to trade stock options.
I opened some paper-trade accounts and some real accounts and I never consistently made any money. I thought that you could just look at stock charts and indicators and predict price direction. Then I could leverage it with options trading and multiply my account many times over consistently.