Smart and dumb financial moves

[pawnman]

What are some of the smart financial things you've done? And some of the dumb ones? This was brought up in another thread, and I think people can benefit from the experience of others (even if the data shows that humans rarely, if ever, learn from the mistakes of others :) )

My own good move was to invest in my company's 401 (k). They have a dollar for dollar match up to 6% of your pay. That means for every dollar I put in from my pay, two dollars goes into the 401 (k) fund. If you have one of these at work, you're nuts not to take it. It's a 100% return on investment. It's free money!

My own dumb thing was to pile on the credit card debt. My credit rating is still outstanding, because I always make my payments on time. But I'm up to something like $15,000 in credit card debt. I'm taking some steps to reduce that burden (I've transferred about $6000 to one card from two others, at 2.99% for the life of the balance, and I've closed one account just tonight). But it will still be a while until I'm debt-free again. At the time, I just needed that X-box, those games, this computer. Some of the things, I think, were worth it (there's about 5 quarters worth of textbooks represented in that sum, and two quarters of tuition after the scholarships ran out....which, on second thought, may have been better as student loans rather than credit card debt, but I didn't think I could get a loan for just 2 quarters).

[memnoch]

don't forget two engagement rings and a wedding ring on there.

As for me, I listed my mistakes in the other thread. What have I done positive, nothing yet specific, however I'm setting everything up for my own church and then eventually my own night club...all being worked on every day. I've made some good investments in Magic the Gathering, while it is a game and all I've made some great purchases where cards have quadrupled in price.

[pawnman]

don't forget two engagement rings and a wedding ring on there.

As for me, I listed my mistakes in the other thread. What have I done positive, nothing yet specific, however I'm setting everything up for my own church and then eventually my own night club...all being worked on every day. I've made some good investments in Magic the Gathering, while it is a game and all I've made some great purchases where cards have quadrupled in price.

Only one engagement ring was a mistake. And the bridal set is paid for in full, thank you very much. :deviltail

[memnoch]

I didn't say it was a mistake, I said it was part of your debt...atleast thats how I meant it. You know no matter how much your wife annoys me at times I love her to death

[BrigidMoon]

Bad moves include, yes credit card debt. This debt that is pretty minimal at this point is in collections but soon to be paid right off, thankfully. I thought I was going to have to borrow from my 401K to get this extra paid off but I do not feel that is necessary any longer. I do not use those debt consolidators or debt non-profits because I had a friend do that and THEY would fail to pay the collectors on time. That's not good at all. So I decided to just pay off one at a time.

Let's see what else did I do that was stupid? -- Quick claim deed to the house. Should have made the ex sell it OR refinance to get my name of the mortgage. Although he DOES help my credit by buying the mortgage on time. If he does not though, it will wreak havoc with my credit even more!

Something that stinks but will pay off in the long term is educational debt from loans. Oy. My mom is still paying on her student loans from years ago but....she makes good good money now and has almost paid it all off and she went to an expensive college, Georgetown University. I have about 20000 in college loans to pay off but I consalidated at a very LOW interest rate and am making monthly payments.

I rolled over the old 401 K that was just sitting there NOT making any money and put it toward 2 plans. One agressive plan that my financial advisor administrates and has made a little over 500.00 in the past 3 months. The other is the plan offered from work. It's making smaller amounts but still is MAKING money.

We are changing some schedules and rearranging some structures and family dynamics for my fiance to be conductor at the local railroad. The railroad has awesome retirement plans for both husband and his wife (after 5 years of marriage you start collecting). He will be getting paid more than I am now...so, THAT'S awesome.

Saving money any way you can without being stupid -- there is a difference between cheap and frugal in my eyes. We won't go into any major purchases lightly. Looking at long term versuses short term....

[BrigidMoon]

don't forget two engagement rings and a wedding ring on there.

As for me, I listed my mistakes in the other thread. What have I done positive, nothing yet specific, however I'm setting everything up for my own church and then eventually my own night club...all being worked on every day. I've made some good investments in Magic the Gathering, while it is a game and all I've made some great purchases where cards have quadrupled in price.

Funny you mention that. Some of my kid's Pokemon cards are worth a lot of money compared to what I paid for them....

[LadyTrinity]

My best investment...

My house. I got a house for 55 thou. There is between 40 thou - 45 thou left on it. It is way cheaper than rent! Its 3 bed room and its only 580 a month. My bf likes that he is putting money into something and not wasting it on rent. The house is ugly and looks like castle.. but its OUR house and we love it. Thats all that matters!

:weirdsmil


The worst investment...

$5000 credit line for home reno's. My ex blew it all on him and his gf so I took him to court to take me off it because he is the one who should pay it since he used all the $. :woot:

And my credit card.. which is maxed out because "sigh" Yeah I had money problems and went to food banks and the credit card helped me with my sons diapers and stuff. Its still not paid because I dont have a job.. Gawd I wish I had a job...
My credit card is good in a way because at 18 I established amazing credit and if I wanted to rent a movie.. I have a credit card to do it with.. or to help my bf out with a tow if his beater busted. :2G:

[NiftyWings]

Dumb move: Making a big loan to somebody I thought I could trust.

Smart move: Putting everything in writing, so now that I'm getting burned I have proof of the deal.

[pawnman]

Dumb move: Making a big loan to somebody I thought I could trust.

Smart move: Putting everything in writing, so now that I'm getting burned I have proof of the deal.

That's a smart move that should be put in bold type:


Get it in writing!

[Aelfoak]

How about getting £28,900 in credit card/loan debts, now thats dumb! But i've learned my lesson and its all being handled through an Individual Voluntary Arrangement scheme that i am on, i only have to pay back 40% of that for the next 4 years and its all done with, no more debt, i can't bloody wait!

I must admit i really messed up in my 20's!

[trippingdaisy]

Dumb move: Making a big loan to somebody I thought I could trust.

Smart move: Putting everything in writing, so now that I'm getting burned I have proof of the deal.


very smart move getting it in writing. I was too stupid to do that. boy, wont be making that mistake again.