Let me learn from your mistakes so I don't repeat them...
What is the worst financial mistake you made?
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Last: 7 mo ago by MouthBQ98
My advice: if you're putting your money somewhere understand all aspects of the investment and get references from others before committing. If you don't understand the investment, don't do the investment.
Don't put all of your eggs in one basket. Diversify even if you are convinced something is a home run. And never risk more than you are able to comfortably lose.
Remember, pigs get fat. Hogs get slaughtered.
Remember, pigs get fat. Hogs get slaughtered.
Marrying my first wife
Divorces are expensive
Divorces are expensive
Unpopular opinion, but I would be much richer now if I had not put so much down on my first home and instead kept it in the market. Massive opportunity cost that makes me sick to think about sometimes.
Turned down a payment of several thousand dollars in bitcoin from an online book in 2013. I didn't understand it yet and wanted the fiat. Stupid.
Selling my Exxon stock when Biden took office.
Not starting my 401k until age 31.
Not listening to my friend who tried to get me into BTC and ETH around 2015.
Getting into ROKU and BOIL, with most of those losses being in my Roth account. (Doubly bad.)
On the other hand, I've been trying to make up for my mistakes by keeping a very low budget, max'ing all retirement accounts, and doing mega backdoor Roth contributions to make up for lost time. And I'm much more conservative and using stops on my Brok/Roth accts. So I like to think my mistakes will end up being a net positive in the long run.
Not listening to my friend who tried to get me into BTC and ETH around 2015.
Getting into ROKU and BOIL, with most of those losses being in my Roth account. (Doubly bad.)
On the other hand, I've been trying to make up for my mistakes by keeping a very low budget, max'ing all retirement accounts, and doing mega backdoor Roth contributions to make up for lost time. And I'm much more conservative and using stops on my Brok/Roth accts. So I like to think my mistakes will end up being a net positive in the long run.
Diversifying is a good idea but hard to do in practice. Many mutual funds have a lot of the same stocks. Many stocks, in different industries just move up and down with the market. Often difficult to find things that move in opposite direction of "the market". Takes some research
Not going hard on real estate about 4 years ago. Timing wasn't great but no risk no reward. Also, hindsight is 20/20
permabull said:
Unpopular opinion, but I would be much richer now if I had not put so much down on my first home and instead kept it in the market. Massive opportunity cost that makes me sick to think about sometimes.
Many decades in mortgage lending and the first question very rich, successful people ask is what's the lowest down payment I can make?
Bought a house when I moved across the country for grad school in 2006. I'm also currently putting in a pool.
Trusting my business partner. Former business partner that is.
Taking a job at Enron in 1999
Investing in a real estate syndicate and didn't ask for proof of their terms on their loans. Who borrows 50 million dollars at low interest without at least a 5 year lock on the rate
From the time I was in Freshman year Econ (macro), adopted Permanent Income Hypothesis heavily into my personal decision making framework. This coupled with marrying, owning a house, and having kids young, led to personal cash flow margins being thinner than I would have preferred looking back.
Ultimately the failure was a lessened ability to take career risks earlier. I under appreciated wealth/spend creep having never been around wealth at that point. A much better balance could have been struck and likely would have led to hitting goals more quickly.
Ultimately the failure was a lessened ability to take career risks earlier. I under appreciated wealth/spend creep having never been around wealth at that point. A much better balance could have been struck and likely would have led to hitting goals more quickly.
Ouch.GasAg90 said:
Taking a job at Enron in 1999
You win. Not the kind of prize you want, but you win.
Owning 4 bitcoins back when they were ~$150 for what seemed like forever and getting tired of it and selling.
Investing in equities in the mid to late 90s during the boom to bust. Disgusted in 99, sold all at a big loss and started investing in real estate.
1. Waiting 3 years to buy my first rental in CS. My mentor talked me out of buying a couple houses within a mile of campus because they couldn't look past how bad the areas were at the time. When I finally moved forward a few years later, they had quadrupled in value. It would have really accelerated my early years of property acquisition.
2. Killing myself in my early to mid 20s to get every possible penny into a 401k or Roth. The timing of the markets combined with the low dollar amounts resulted in it being insignificant.
2. Killing myself in my early to mid 20s to get every possible penny into a 401k or Roth. The timing of the markets combined with the low dollar amounts resulted in it being insignificant.
Not buying land several years ago
Mas89 said:
Investing in equities in the mid to late 90s during the boom to bust. Disgusted in 99, sold all at a big loss and started investing in real estate.
Uggh! With the graciousness of my grandmother, combined with summer jobs, I maxed Roth contributions I think in 97 and 98. Disgusted, I didn't touch it. Time solves all right. Until 15 years later around 2014, it was still mostly flat. Said to hell with it and pulled my original contribution.
Carrying credit card balances. Terrible do not do it.
kyledr04 said:
Not buying land several years ago
I almost bought 320 acres of hunting land in 2020. Now I'm sitting here wondering if I'll ever be able to buy any.
5 year financing on a new vehicle. Buy used vehicles with cash or max at 3 year financing. You cannot get rich buying cars.
WestTexAg12 said:kyledr04 said:
Not buying land several years ago
I almost bought 320 acres of hunting land in 2020. Now I'm sitting here wondering if I'll ever be able to buy any.
Me too. Sickening. Prices are insane even in rural East Texas.
A few regrets:
1. I don't consider getting divorced a mistake because I'm much happier now, but getting married in the first place was. I didn't learn my lesson either because I remarried - time will tell how much that will cost me.
2. Holding onto company stock (Options, RSUs, and ESPP) for too long because I didn't want to pay taxes.
3. Not learning to trade options sooner.
3. Having expensive hobbies, namely sports cars and guitars. At least I don't like golf.
1. I don't consider getting divorced a mistake because I'm much happier now, but getting married in the first place was. I didn't learn my lesson either because I remarried - time will tell how much that will cost me.
2. Holding onto company stock (Options, RSUs, and ESPP) for too long because I didn't want to pay taxes.
3. Not learning to trade options sooner.
3. Having expensive hobbies, namely sports cars and guitars. At least I don't like golf.
Not buying properties to generate rental income early enough.
Like others have mentioned, failing to buy 300 to 500 acres when I was in my 30s. Back then it was a significant number relative to my income, but was still affordable, and my income at that age was going to go up and up, making it more affordable. Looking at prices today, I don't see how many could make that sort of purchase.
Not planting trees the first week after I've purchased property.
Not setting prices at which I would sell investments and not using stop orders to protect gains on investments.
Like others have mentioned, failing to buy 300 to 500 acres when I was in my 30s. Back then it was a significant number relative to my income, but was still affordable, and my income at that age was going to go up and up, making it more affordable. Looking at prices today, I don't see how many could make that sort of purchase.
Not planting trees the first week after I've purchased property.
Not setting prices at which I would sell investments and not using stop orders to protect gains on investments.
Not realizing that the market will reveal your weaknesses. Are you a gambler? Better have some rational rules around position sizing, entries and exits, etc. Are you conservative? Can't be mad about missing riskier returns and then FOMO'ing at the end before it all starts falling down.
My worst loss was 75% of my account in 2008 during the great financial crisis. I was early on commodity stocks and shorting other stocks which is indistinguishable from being wrong.
My worst loss was 75% of my account in 2008 during the great financial crisis. I was early on commodity stocks and shorting other stocks which is indistinguishable from being wrong.
Selling several real estate properties around 2016 because of flat markets and tired of landlord headaches. Also, not buying a couple or recreational properties around the same time (assumed they'd always be there at affordable prices)Dill-Ag13 said:
Not going hard on real estate about 4 years ago. Timing wasn't great but no risk no reward. Also, hindsight is 20/20
$WWR
Not buying $1000 worth of bitcoin back in 2008 and not taking a 'risky' job at a private equity-backed company. Any of those two would have me retired 5-10 years ago.
1. Not being open to going to NYC out of school.
2. Not willing to really taking an international assignment.
Stayed more local and should take risks right out of school to propel your career (whatever that might be).
3. Leaning on a financial advisor that was too conservative - be diversified but stay invested. Parking money on the sidelines was a poor decision. Always have 50+% invested minimum and buy in more on down movements.
2. Not willing to really taking an international assignment.
Stayed more local and should take risks right out of school to propel your career (whatever that might be).
3. Leaning on a financial advisor that was too conservative - be diversified but stay invested. Parking money on the sidelines was a poor decision. Always have 50+% invested minimum and buy in more on down movements.
aggressively paying off mid 5figures in sub 3% student loans 08-10 instead of investing just to eliminate all debt
(unknowingly following Ramseys philosophy for the poor to just stay slightly less poor)
then for nearly a decade defaulting entire Roth into garbage target date fund doing jack squat due to over intl/bond exposure until finally using covid crash to DCA into mostly VUG which has >quadrupled the returns since
(unknowingly following Ramseys philosophy for the poor to just stay slightly less poor)
then for nearly a decade defaulting entire Roth into garbage target date fund doing jack squat due to over intl/bond exposure until finally using covid crash to DCA into mostly VUG which has >quadrupled the returns since
Getting involved with someone over 45 that didn't have a dine to thier name.
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