Financial Fellow

………………..Written by J.P. Wicklein…………………………………..Photo by Waffler

…..Throughout the course of my adult life I’ve made smart financial decisions.  On occasion, though, I’ve made some mistakes.  With that in mind here are my biggest financial blunders:

1)   Buying a home too soon:  I bought my first home at the age of 25.  Before pulling the trigger I paid off my college credit card debt and a car loan.  I had enough cash to put 5% down and cover the closing costs.  The problem, however, was that I had little money left after that.  I assumed a mortgage payment without any short term savings and used my credit card to furnish my condo.   Had I waited another 6-12 months I wouldn’t have had to rack up a credit card balance and would’ve moved into my new home with some money in my savings account. 

2)   Maintaining a credit card balance:  For the majority of my time as a homeowner I’ve maintained a credit card balance.  For the most part I’ve been able to keep that balance on a promotional interest rate of 0%.  That said, each time I move the balance to my other credit card (when the promotional rate expires) I incur a balance transfer fee.  On top of that, it’s a bit of a psychological downer to carry credit card debt.  

3)   Failing to build an adequate emergency fund:  Fortunately this one hasn’t bitten me – at least not yet.  I’ve deferred building up short term savings in favor of investing a large portion of my earnings in retirement accounts.  My back up plan, in the event that I lost my job, has been to rent out my condo and move back in with my parents.  Frankly, that isn’t the best plan.  So, a couple years ago I began building up my short term savings.

4)   A brief bout with gambling:  During one college summer I found myself taking a few too many trips to a local casino.  After losing about a third of what I earned that summer I realized I needed to alter my behavior.  So, I stopped going to the casino and found better ways to entertain myself.  I learned my lesson and haven’t looked back. 

     Although I’ve stumbled a few times along the way, the bulk of the time I’ve made sound financial decisions.  Soon, I’ll post an article on my biggest financial accomplishments.  What about you?  What are some of your greatest financial blunders?  Post your comments below!