Money Mistakes

Hey a lot of us make mistakes with money. Bad decisions if you will. For me when I was married it was cars.

Always wanting something different etc etc. Why buy something that depreciates in value? AND pay interest on it? Doesn’t make much sense does it? Oh well live and learn.

But there are certain financial mistakes that can really wreak havoc with your future.

1. Going Back To School

You hate your job or maybe you have lost your job. And you think you should go back to school to “upgrade” your skills or get another degree or whatever. Well how are you going to pay for that? Student loan? Line of credit? A student loan will have a high interest rate and even a “low interest” line of credit is still interest that you are paying. And is a new job going to earn you any more than you might be making now?

2. Buying a house

The lure of home ownership is powerful. You want your own place. Privacy. A yard. Room for the kids. I get it.
But unless you have at least a 20% down payment, forget it. And remember, with a house comes property tax, insurance, and maintenance. You really have no idea how expensive home ownership really is. And there is no guarantee that home values will rise, so don’t think you will be able to sell and make a profit either. You should pretend you have a house for a year and make all those payments to yourself to see if you can really afford it.

3. Retiring Too Early

I remember ads from when I was a kid that were all about retiring at 55. Guess what? You don’t see those ads anymore. Right now the perfect retirement age is 67. This gives you ample time to save, invest, and get your financial house in order. Just accept it. Hey working keeps you young. Maybe you will be able to have a reduced work schedule at 55 or 60. But keep working and put away as much as you can so you will be able to enjoy the years after work.

This is one of the reasons I am living a minimalist lifestyle now. I still have a great life. But I put away as much as I can from every paycheck with an eye on the future.

Think hard before making any large, impactful financial decisions that will affect your future.

Your retirement will depend on it.

“Live Simply”


One thought on “How NOT to be Financially Secure

  1. I don’t know if would consider going back to school to be a financial mistake, unless you’re well established in a field. This depends a lot of an individual’s specialization. A lot of higher paying jobs require a Bachelors and/or Masters degree. Students loans are possibly the easiest debt to manage, and federal loans have very low interest rates. Sure it isn’t desirable to take money out for school, but I don’t know anyone who hasn’t borrowed money for school unless they were fortunate enough to receive a full ride. In the end, getting that degree will mostly likely help you earn more than just a “new job.” Plus, being happy is what the minimalist lifestyle is all about.

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