Money mistakes, by Marguerite Tennier, M.A This post may contain affiliate links
Avoid those big money mistakes
Money. Money.. Money. I like to think that I have always been careful with my money. Yet, when I do a quick review in my mind – as I am doing now – I can see where in my life where I could have been a lot better in the money department. I made huge money mistakes that ended up costing me a lot of money.
Mistake no. 1
The first money mistake I remember doing was to neglect investing the cash value of a life insurance my parents had taken for me at birth. I don’t remember how much it was, maybe $1,000. Not much by today’s standard but $1,000 invested at 7% when I was 20 could have grown to close to $15,000 at 60. At 10%, over 40 years, that would have grown to over $45,000. – yes forty-five thousand dollars.
Pearl of Wisdom
Obvious – if you have some money falling from the sky, whether it’s the cash value of a life insurance policy or a gift from a generous relative, and you don’t absolutely need it to survive, invest 90% of it – and treat yourself with the other 10%. If we are talking about huge amounts of money, invest it all now. Consult with an independent financial adviser (fee for service) first. And yes by all means treat yourself but remember that even a million dollars does not go very far these days.