Ask:
Let's all learn from each other's mistakes. What was your one worst financial mistake?
Mine was borrowing against by RRSPs (401K) to put towards the down payment on our house. I didn't realize it at the time until I read it later in O magazine (I love that magazine) but now I pay double tax on the amount I pay back. I pay income tax on the money before it goes it (because it is a repayment), and I pay tax on it later when I take it out again. Ugg.
Answer:
selling our first house. It was paid for and when dh went into the army we sold it. Six months later he was dicharged becuase of a back injury. We moved back home but did have a houseanymore. We got greedy and bought a much bigger one with association fees and all that. It slowly killed us.
But thats a tie with going into a business with family. Ugh! was that a huge mistake and I knew it would be.
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Right now I am starting to think that our move was!!! We have double the mortgage, almost double the mortgage payment and the cost of living is higher, plus I have yet to find a job! And this house is sucking up our money like a money pit!
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Without a doubt putting school related (and misc.) expenses in college on my credit card. I would have been much better off just getting higher student loans!
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Ours was and actually it was more my dh than me Credit Cards! ARGH! I hate those things. Dh had two cc's before our dd was born and we were both working so we had no problem paying them off everymonth. After dd was born dh lost his job and he applied for a bunch of cc's right before he lost his job (dont ask me why). So at that point we were pretty much living off cc's, which was awful. Dh did find a job but it was minimum wage. That whole time in our lives was awful. Then we tried and tried to pay them off when he got a better job but we never could. We eventually had to file banruptcy (which we said we would never do) to get rid of the debt. Awful I know. Now 2 yrs later dh wants another cc but there in no way I am going to let him get one!! If we dont have the cash in the bank for it then we cant afford it!
Answer:
My worst financial mistake was not confronting my former DH immediately when I knew he was hiding money issues, credit cards, etc. I let it go on for years and it just got worse and worse. No issues with that now - since we're not together anymore. I strongly encourage couples to be HONEST with each other about money issues - the good the bad and the ugly.
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Ours was about 8 years ago...we were looking for a larger car (thought we would be starting a family quickly) and when we saw a 6 year old Volvo wagon on the lot, I thought we just HAD to have it. I kinda rushed DH into the decision (they were putting MAJOR pressure on us) and I have learned to never do that again. DH is always very careful about car decisions, and we should have followed his gut. It turned out to be a lemon and put so much $$ into repairs not to mention it completely blowing up on a major interstate (thank God for good samaritans and heavy traffic!). We decided not to keep it any longer, and lost a boatload of $$ on it, since we still owed os much. The beginning of our demise!!
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Because dh's company paid most of a car payment...we went for a super nice, brand new vehicle...and when the company decided to provide company car's instead, we were stuck wtih a $750 a month car payment!
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Using credit cards for my first year and a half of college--I too should have just taken out bigger loans since I was able to get them subsidized and they had no interest. Now I am in credit card debt.
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Not finding another job after I was laid off. It started a snowball effect that is still rolling down hill.