My 3 Money Mistakes

Finances…to some finances provide freedom monetarily and freedom with their time. To others finances represent pain and stress. Some people are great at managing money, some are decent, and others really are not good at it.  For me there were times when money represented stress and I was deliberately unwise in managing money. For the next few minutes I want to share three money mistakes I’ve made, my feelings and thought processes when making them, solutions that helped me to not repeat those mistakes, and the impact that those mistakes have made today.

1) Not understanding college funding and student loans

Student loans have disabled many graduates from hitting the ground running in their careers due to paying back a great portion of monthly income to loan providers. Some students are able to finish degree programs with no loans due to scholarships, grants, free tuition, or parents paying for school in full. I truly am happy for those that fall under these categories due to the work that they put in and the sacrifices of their loved ones. I received partial academic and athletic scholarships as well as assistance from my family. However, all of these dollars combined only covered a fraction of the costs due to attending a private institution. Student loans covered the rest. Upon completion of my Bachelor’s Degree, I had roughly $80,000 in student loans just for undergrad. Every semester I was in the financial aid office trying to figure out how I was going to make the dollars work so I didn’t have to drop out. In those moments, finances represented stress. I contemplated transferring but never went through with it. While I was signing up for any student loan I could get to stay enrolled, I didn’t understand the financial impact it would have post graduation. In high school, I looked down on community college and thought it was beneath me(immatureness and insecurity). If I could do it all over again, I would have certainly stayed home and went to community college for the first couple of years to get all of my basic courses out of the way and then transfer. 

2) Overspending with retail shopping

The summer after I graduated, I got my first full-time accounting job. Being single with no car payment and fairly cheap rent, I felt as though I had a ton of extra money to spend each month. I spent roughly $600 per month buying shoes and clothes. I felt I was making my own what I called “big boy money” due to working full-time so I could do whatever I wanted with my extra income. Truth is, that habit I developed was rooted from my childhood experiences. Although I never went without and had everything I needed as a kid, I wanted all the cool shoes like the Jordan Retros, Nike Air Forces, and Vince Carter basketball shoes. After college, I found myself trying to relive and patch up my insecurities by overspending on shoes and clothes. I felt like I had to have this or that to be cool and fit in. With time I realized that those things never brought security in my life. Retail therapy just prolonged the process of me actually dealing with my insecurities and vulnerabilities. Had I not spent that much money on shopping during that season of my life, my wife and I could be further along financially. Instead of shopping I could have saved those dollars, invested, or paid on student loans. Geeeze, those student loans… 

3) Not investing

When I started my first full-time job, I should have dedicated a portion of my income to investing. Instead of shopping so much I could have streamlined my investments a lot sooner thus generating more income. The initial investments and the ROI on the investments together could have been worth five figures. Now today that’s income I don’t have. At the time, I didn’t know the financial impact not investing would have made over time. I wanted to be fresh instead of ready for the future. Obviously my priorities were all jacked up.

The number of dollars we make does not solely determine financial success. It is also determined by the manner in which we manage the dollars and expenses we have. Misplaced priorities and the lack of financial vision and wisdom can prolong or even derail us from experiencing financial success. One thing that is evident in my story of money mistakes is that one mistake can be a domino effect to other mistakes. For me, the lack of vision and personal insecurities led to money mistakes that cost me tens of thousands of dollars. The great thing about money mistakes just like any other mistake is we can learn and grow from them helping others to not make the same choice. The truth of the matter is internal insecurities often produce imminent money mistakes. Finding the root of money mistakes is vital in reaching financial success. My root was insecurities. Insecurities can lead to misplaced priorities, which lead to lack of financial vision, that lead to revolving door of money mistakes. Maybe for you it’s not insecurity. Maybe for you it’s pride, heartbreak, laziness, or even comparison. Whatever is the root of your financial mismanagement, intentionally address the issue and persistently press in to God. Be confident in who you are and where you are going. Create the life you love and love the life you create. Go Skyward!