We’ve all made mistakes with money. Perhaps we spent our entire paycheck on takeout, had too much freedom on a shopping spree, or spiraled down an internet rabbit hole and ended up furnishing a house when we lived in a one-bedroom apartment.
Here are ten money mistakes to avoid from individuals who made them.
1. First Home, Mobile Home
Owning a home can be financially beneficial in the long run. Your equity increases as you pay down the mortgage, the home can go up in value, and you can potentially get rental income.
For one user, none of this was true. They mentioned that they regretted purchasing a mobile home as their first home. This user said that buying the mobile home was a mistake, as it sucked up all her savings, but mobile homes don’t appreciate in value. In fact, they depreciate in value, just like a car does as soon as you drive off the lot.
2. College After High School
College is not for everyone. That sentiment becomes more apparent to me daily. Some people just aren’t built to learn in a classroom setting, some need hands-on learning, and some need to experience work in the field before deciding to dedicate their lives to a craft.
If you don’t know your interests, this user suggested taking some time off between high school and college to reflect and learn what you care about and who you are. This way, you don’t waste time or money on education.
3. Timeshare
If you’ve been to an amusement park in Florida, you’ve encountered time-share salespeople. Time-share workers set up shop at the corners of resorts or along a populated street and promise you free resort tickets if you sign your life away. Of course, that is in the fine print, but these devious salespeople know how to exploit wide-eyed travelers.
One Reddit user said they spent thousands on a timeshare they only used once. Eventually, they took legal action to terminate the mortgage.
4. Student Loans
College is expensive. Whether attending a private university or a public school, tuition is a financial burden affecting millions. According to several people, they regret taking out student loans, as they still make payments toward their student debt.
Another user added that taking out student loans and then dropping out of school hurt their financial stability.
5. Procrastination
Paying off bills and budgeting looks easy on paper, but the tricky part is getting to it. Tracking expenses, creating budgets and sticking to deadlinesares boring but necessary.
Many users claim they suffer financially due to late credit card payments or missing payments due to procrastination on their part. Writing down those bill deadlines saves money and time.
6. Paying Debts for Others
Many people in the thread said they paid off debts for their friends or exes. These users gave into their good morals and decided to help out those close to them. In many cases, this led to the indebted taking advantage of the users and racking up even more debt.
Several users said they refused to lend money after those experiences.
7. Using a Credit Card Without Having Money To Pay it Back
Credit cards are dangerous if you abuse them. Like anything, credit cards come with risks and rewards. When you’re young, maybe fresh out of high school, or college, you open a credit card and see endless possibilities to use your new “money” on. So you pop into different stores in the mall and purchase too many clothes or order too many expensive items from Amazon.
If you have the means to pay back these purchases, great. But, these users wrote they did not have the funds to pay off their credit card and didn’t have a reasonable plan to pay off the debt. Sky high-interest rates reflect the comments of one user, who mentioned that they paid the remainder of their credit card debt from 2016 this year.
8. In-App Purchases
Looking to kill time? Nothing beats playing Candy Crush while waiting for your plane to take off; or perhaps you’re swiping through Tinder or Bumble, looking for a date.
Either way, in-app purchases swindle extra dollars from users. In-app purchases pop up on virtually every app, imploring users to spend money for an enhanced experience. This can look like turning candy into cash on Candy Crush or getting unlimited swipes on Tinder.
In the heat of the moment, these in-app purchases seem like an insignificant investment but can quickly add up, according to several commenters.
9. Spending Loan Money
I have a friend who receives their student loan money via check. Each month they receive x amount, and instead of setting it aside to pay off their loans in the future, they use it for rent. This works as a short-term crutch, but when they need to make loan payments after they graduate, they might run into a bit of a financial pickle.
10. Opening a Joint Account/Marrying the Wrong Person
Many users warned that marrying the wrong person could severely damage your financial well-being. Jumping into a marriage without doing your due diligence can lead to irresponsible monetary decisions and unwanted legal ramifications.
For example, one user shared their experience of marrying someone, inheriting their debt, and spending all of their income to pay off said debt. The couple got divorced just a few years later.
This thread inspired this post.
Featured Image Credit: AndrewLozovyi /Depositphotos.com.
This article originally appeared on Ash & Pri.
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