In 2009, when I first started to blog about my money problems, I wrote a series on my top ten biggest money mistakes. They are still ridiculous. Looking back, now that I so close to paying off my credit cards, I thought I’d share from that list again. This time, I have the top five most ridiculous money mistakes that I’ve made.
5. Cashing out retirement plans
I cashed out three retirement plans and have basically had to start from scratch in my thirties. Amazing money choices. This is one of the tips that is printed in really big letters in all of the personal finance books. DON’T CASH OUT YOUR 401(k). It’s good advice too. It’s there for retirement and needs to collect all of that sweet juicy interest.
4. I bought five cars in five years.
Seriously. Five cars in five years. Then I was trapped in a car that had a five-year lease with a really high payment that I wanted to hurt. Do not trade in a perfectly lovely Jetta because you get a flat tire. That does not mean that the car is defective. That mostly means you are a young idiot. Don’t be that way. Purchase a car that you can afford and keep it until it dies. Also, don’t buy a trendy color that you will regret in a year.
3. The Shoes
When I did the list originally, the shoes weren’t included. Probably because I still had all of them and loved them like close friends. If you have more than $30k in credit card debt, you really need to think twice before you spend $2,500 in a weekend on shoes. I do not care how cheap the Jimmy Choos are. YOU CAN’T AFFORD THEM. And you will only wear the world’s most perfect Valentinos once because they make your feet cry blood tears. Same with the leopard Kate Spade. You may have adorable feet, but you can’t hurt your self all of the time. But, let’s take a moment to remember, shall we?
This is the story of how I wasn’t going to use my credit card for an entire month in January. So at the very end of December, I went out and bought a very nice Yurman bracelet. It cost more than I would have spent in January. Of course, at the pinnacle of broke, I had to sell it at a loss. Awesome.
1. Diamond Studs – the traditional Jury Duty gift
I wish you were reading this one wrong. Really, I do. This should be explained by the following statement: I wanted diamond studs, so I was going to find a way to justify the purchase. (I was always my own best enabler.) So, I went to jury duty. I didn’t get picked. I sat in a room all day reading Sula.
To celebrate the completion of such an amazing civic duty, I went to the mall and bought diamond studs. (Total weight of 1/2 carat.) This one still blows my mind a bit. I did wear those earrings every day for years. I mean, YEARS. I only stopped when I turned one of them into a side stone on my grandmother ring. I sold the other stone to the store to put toward the price of the ring.
Jury duty. Diamonds. Ugh.
Fortunately, I haven’t been called for jury duty since.
There’s a lesson to be learned in all of this. If you ever wonder if you are making the right decisions with your money, think to yourself: would Danielle have done this in 1999-2008? If the answer is yes, I suggest you put your wallet away and reflect on things for a while. If Danielle would do it 2010 or later, you are probably all right. (2009 was an adjustment year.)
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Ohhhh….bloody tears….sad and beautiful at the same time. It’s also sad that really expensive shoes and really cheap shoes can hurt your feet the same amount.
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I swear that my feet will forever be damaged from the abuse that I have put them through. Probably worth it.
I read “Shoes” and was about to come after you with the pitchforks & orgre chasing villagers when I realised I have never ever ever spent more than $150 on a single pair of shoes ever and certainly not more than that in a single weekend. I think I would forget to breathe if that happened! Lol!
But seriously, for me my lack of saving and random debt was making big purchases that were necessary and not paying them off properly until the interest just took over. That and many random acts of small amounts of spending. *sigh*
PS If my shoes hurt I try and make them ‘unhurt’ and if they still hurt they usually get to choose another owner on ebay
Holy batpoop I love those shoes. I so can’t wear them though.
I’m bad with money. I admit it. Like really bad. I buy books instead of putting gas in the car. Who needs gas when you work from home anyway?!
Great post. Visting from SITS. I always analyzed my spending as being cheaper than going to therapy LOL. “Retail therapy”. Did the Dave Ramsey thing about 2 yrs ago, fell off the wagon and still trying to get back up. Stress causes me to justify spending.
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