Our Educators blog team members are sharing their answers to this question: Whats your biggest money mistake? Stefanie, Emily, Danielle, Sarah, Angie and Rob have shared theirs. Today, Brandon tells the story of his biggest money mistake and how he recovered from it.
All right. My biggest money mistake hmm thats a tough one because I am so financially responsible 100% of the time. OK, so that may not be entirely true. In fact, thats probably the furthest statement from the truth! My biggest money mistake spans a few years, to be honest.
When I was probably 18, I had gotten my first credit card. No big deal, it was a $500 limit card and I would pay it off every month, no problem. It did great things for my credit and it was a real confidence booster. Then, a while down the road, whilst feeling immensely responsible, I decided to bump up the limit. Again, not a big deal as it was under control. But there was really no reason to increase the limit other than my ego wanted to see how much I would be allowed. I know, its really stupid but its where I was at time.
Fast forward another year or two and a handful of credit increases later, I had finally ascended to the four-figure credit card debt club! Not just the newbie $1,000 club either. I reviewed my finances one day and found I had joined the varsity team with $7,000 in credit card debt. It was really mind blowing when I tried to figure out what I actually used the card for. I can reference a handful of larger purchases, but in the grand scheme of it all, I know it was mainly just wasting money on a bunch of garbage.
I knew something had to change. I’d just like to say that dogs are cool and all, but I firmly believe that budgets are a mans best friend. I would love to tell you that it was all happily ever after and I got all of the debt paid off. Like most things, however, a plan never really goes 100% like you anticipate.
I have made my fair share of slip ups and used the card since and set myself back, but you know what, it happens! I try not to beat myself up too much over it, but I know what my ultimate goal is and I do my best to keep that goal in front of me.
I find comfort in the fact that while I still have credit card debt, I have my finances under control and I am moving to a credit card debt-free lifestyle. None of us are perfect and we all make mistakes and bad judgments at some point that’s life. But, if we do our best and learn from our previous mistakes, well get there. There is different for everyone but I believe we can all find it!
So, how about you? Any money mess ups that you had to check yourself on? Come on, we all have them! They are never fun but it feels better knowing everyone’s been there.
Don’t be embarrassed! Sharing your money mistake might help keep someone from making the same one. So, comment and tell us what is your biggest money mistake?