I was sitting around thinking (not again) and I realized that I’ve really short changed myself in the past. Not so bad that I haven’t recovered from it (to some extent), but enough that I could have made things a bit easier on myself. Jonathon at MymoneyBlog had a good post about mistakes, and so did MyOpenWallet. I think it’s a fact of life that we all make mistakes. I’m certainly no different. Here goes:
-Purchased a brand new Acura. Ouch (and then sold it a year later)
-Bought Commerce One years ago and rode it to 0. (Could have been worse)
-Kept too much stock in my company after the IPO and then rode it waaaaay down. (Made some money, but only 10% of what I could have. Think diversification)
-Learned all about compound interest and the rule of 72 when I was 18 and then proceeded not to do a damn thing about it for 10 years. Knowing something, and actually acting on it, are two entirely different things. (Yeah. Duh)
-Didn’t start my 401k at my current company for 6 months after I started. (And I’m vested in their portion from day one. Lost that match)
-Drove cars for a couple years and then traded them in. (HUGE financial hit)
-Ate dinner out at least 4 times per week for dinner, and every lunch. (And I suppose I shouldn’t forget the coffee and pastry in the morning)
Well, the good thing about reflecting and acknowledging mistakes is that it helps you from repeating them later. (In theory). I do feel some good fortune that I figured these things out in my late twenties and early thirties. It’s given me a chance to catch myself up. So, have you made any doozies that you aren’t so proud of?
Oh, lord–have I ever. They are chronicled for all posterity here:
http://smbmoney.blogspot.com/2005/12/mamas-dont-let-your-babies-grow-up-to.html
I love that this is a bit of a “meme” going around…I’ve made my share too and I hope to get them up soon
Definitely. I spent the vast majority of what I made as a 17 and 18 year old on stuff like sports equipment, a MiniDisc player, and eating at restaurants. It’s not like I made a ton of money, but I hate to think of what I could have put into a Roth or something. I don’t agonize over it, but I still wonder how I could have been so different not that long ago.
The only mistake you can really make is not looking back and learning. Great post!
There’s a wise old saying “Mistakes are doorways to discovery.”
If that’s the case, then I must be the Christopher Columbus of mistakes!
The saying goes; We live and learn…but better to learn early than later OR NEVER AT ALL.
I’m WAYYY to lazy to google; what is the rule of 72 re:compounding?
I have an intuitive feel for it, but would like a clarifier/next blog?
Foob
Jim at Blueprint has done a pretty good job of giving a brief explanation of the Rule of 72, but like you say you can also google it. Here is Jim’s:
http://www.bargaineering.com/articles/rule-of-72-understanding-compounding-interest.html
Hazzard