Financial Mistakes: Let Fear Drive You To Never Repeat Them

learnGot any major financial mistakes you’d like to never repeat again? I sure do. Fear can be a good thing when it keeps you from repeating them.

Financial mistakes seem to be more popular today than in the past. We don’t all make the same ones but recently it’s been a common theme to spend what we don’t have. Even our government is doing it. We can learn from it and hopefully there’s some healthy fear to keep us on track.

Fear the power of the credit card companies

The credit card companies have expanded into a multimillion dollar business. There are now a variety of credit card options for anybody, regardless of their credit score. One can choose a prepaid credit card, a secured credit card, or a regular credit card. This is appealing to many of us, and can drive anyone to apply and get accepted. Now there is nothing wrong with having a credit card, but when one uses up, and/or exceeds their credit line it will destroy their credit and they will owe the full balance. Bad credit will follow you for 7 + years leaving you hopeless on any type of financing. A credit card is not free money to spend. The moment you spend it it becomes a debt you need to pay off.

Poor Budgeting or not Budgeting at all

Going over budget or not having a budget can cause a major financial mistake that will affect you for a long time. Budgets are meant to keep a person on track with their financial obligations and the amount of cash coming in and going out. The mistake people make with their finances is going over budget. Poor budgeting can lead to bills not being paid and your utilities getting cut off.

Payday Loans

Payday loans or any type of short term loan is a big financial mistake. Companies have high interest rates, adding to the cost of your already negative account. But to make it worse, if one is already broke how can they add the interest rate on top of the loan amount due and still keep their account positive? It’s a losing battle. Stay away from any type of short term loans and stick to a budget.


It’s no joke that some gamble away the little they have hoping to walk away richer. Some have a lot and then gamble that away. Either way it’s a mistake. That promise of a better future is best guaranteed through hard work, not the slots.

We’re all going to make mistakes. The difference is the level and degree of them. You can minimize yours by learning from others and following sound financial advice.

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  1. Credit cards and payday loans are just another form of gambling. The house sets the odds in their favor. Everyone thinks they can outsmart the house, but few ever do.

    • Kevin, I liked the way you phrased that. Often times we put ourselves into a tough or negative situation and then think we can out smart our way out of it.

  2. Fortunately, I was never attracted by gambling, but I had my share of financial mistakes and not budgeting and not keeping track of the expenses were two of the biggest. I still use to spend quite some money on wants and junk that sometimes gets straight to the garbage bin, but I’m starting to reduce the waste 🙂

    • Glad to hear you’ve been able to minimize some of that spending. 🙂 We all have our weaknesses and sometimes being able to identify them is the biggest step.

  3. I have lost more than I care to admit gambling. One the main things that I learned is that you can never win back your losses. Do NOT even try, it only prolongs the downwind spiral.

    • Those are wise words. We can’t out smart the predicaments we’re in when it was our “smarts” that got ourselves there in the first place.

  4. Credit card bills used to be very scary for me, and I don’t want to ever be afraid to open an envelope again. Never tried Payday loans or gambling much, but I can see how that would be equally or more scary.

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