We all make financial mistakes, it’s a fact of life. But I am curious what mistakes others have made when it comes to purchasing something they later regret.
For me, it was my 2012 Dodge Avenger I bought used from a wholesale car lot.
It was my second car (my first was a 2003 Honda Accord which still ran fine) and at the time I bought it on a whim because I thought it was cool and I wanted a “fancier” car.
I still own it but to this day it stands as a reminder of what I consider to by my worst purchase I have made.
It is not the worst car in the world but it has had its fair share of issues since I purchased it and the fact that I paid basically what they were asking without negotiating or getting a better idea of what I was buying makes it a purchase I regret to this day.
So go on… feel free to share your worst expensive purchases that you feel like were a mistake.
Mistakes make great learning experiences, especially when you can learn them from someone else without having to experience them yourself!
Worst financial mistake was a used 5th wheel motor home…our first venture into traveling with one. We jumped on an opportunity when a distant family member decided to sell theirs. It turned out to be a money pit, was way too large for our needs of occasional weekend camping which we ended up not doing much of because it was a pain to hook up, set up, and drag back home for 2-3 days away. Because we didn’t use it much, rats got inside and chewed up wiring that we had to replace, and finally the slide out deteriorated to the point it would not move. We ended up giving it away to a stranger planning to put in on hunting land.
Gee, so many financial things I regret. Most are related to investment stuff as I don’t buy much consumer goods.
One of the most expensive mistakes I’ve made is shorting a stock that skyrocketed, causing me to lose all my money at the time ($10K) within a single trading session.
Another expensive lesson is more recent, which is fronting money to a business where the business partner has no money. He ended up embezzling money from the business. Fortunately, he did sign a contract that outlines his financial responsibilities so I’ll probably just sue him (I’m technically just a contractor for his business in the contract so I get more protection as a vendor–also this is easier to setup as the business partner is overseas). But even if I could recover the money, it’s a huge hassle.
I bought jewelry while on a Disney Cruise. During one of the port stops on an island, I walked into a tourist trap. I planned to buy jewelry for myself, but didn’t intend to spend that much. I financed it with a new line of credit on the spot. Thankfully, I paid it off in less than two years without interest. But I did beat myself up for this emotional purchase (I’ll spare the drama!). I learned to forgive myself and learn from this mistake.
PiNaY, Of course it’s your decision to add details or not, but I think people will relate better if you give the details and emotions that went into the purchase. Just my humble opinion.
The first regretted purchase I remember happened decades ago. We were a young family, money was tight. We were going to buy a new sofa with our income tax refund. Before the refund arrived, the car needed a big repair and took the money. Being very frugal, I did not want to go into debt and we lived with a falling apart sofa for another year. It was pretty embarrassing.
The following year, income tax refund time I was so anxious. I needed to get that sofa before anything else happened. I dragged my husband to a furniture warehouse type store. It was truly a warehouse type store with furniture in groups, but in a huge building. I didn’t love any of it, but I had to get that sofa. So I picked one that I thought I could live with. As they were bringing it in the house, I realized how huge it was. In the light of day (warehouse was dim) I was thinking I HATE THIS FURNITURE!! I shouldn’t have been in such a rush and really shopped around to find something I loved or at least liked. Of course, we had to live with it for a while.
My downfall is never the big expensive purchases, but rather, the countless little things that add up to lots of money, i.e., ordering UberEats, an extra $10 for another nail polish when I run to the grocery store, all the $15 tops and purses from Target that mostly collect dust in my closet.
The most expensive thing I purchased that I consider to be a mistake is repeat of compulsive thinking which is very expensive in many ways. Acting on impulse has created multiple times of poor purchases.
I paid off my ex’s student loans with some inheritance. At the time, I thought I was being a good partner, going for that debt-free life. Needless to say, things didn’t work out and I really could use that money nowadays.
I paid off my ex’s student loans with some inheritance. At the time, I thought I was being a good partner, going for that debt-free life. Needless to say, things didn’t work out and I really could use that money nowadays.
You were a good partner. That hasn’t changed. I’m so sorry though, that really hurts.
Oooh, this is fun. The first 3 things that came to my mind: my house, my car, & my degree. The house & car were purchased out of what I felt was necessity. If I didn’t buy the house I was renting, I would have had to move & I was so unsure of anything at that time. Now I’m stuck in a 30 year mortgage that’s way too expensive for what I’ve got. (Let’s just say my mortgage is about 40% of my monthly income & for a measly 980sqft.)
As for the car I recently financed- I knew I couldn’t afford it but I couldn’t find any better options. There was nothing near me for less than $10k & most people wanted cash only type situations. So I ended up panic buying at a used dealership that promised I’d qualify for a loan. Well I qualified with an interest rate that would spook the devil himself. It hurts every month when that chunk of money goes out… At least it’s a safer vehicle, I guess.
The biggest regret though is absolutely my education. $40k in debt for something that has only gotten me rejected from jobs. (True story; had a hiring manager say “well you have a Bachelor’s degree, so what’s stopping you from just leaving our company? I can’t take that risk.”) Ouch.
When I was married, we refinanced the house and paid down debt with it, only to rack it up again. What a waste of money.
I thought about my masters degree that I don’t need for this job- my favorite job ever- but it did get me some great jobs and I still use what I learned, so I have to be OK with it. Not that I’d turn down a payoff!
I really can’t think of any major purchase made that I regret, probably because I give a hard thought on those. Now, like @dear.penny, it’s those impulse purchases (like the $5 hydo bath towels at BBBeyond this week [only 2!], the incessant stops at the Family Dollar, or buying a quick meal when my pantry and fridge are full, you get the picture).
I atone by transferring the spent amount into a savings account, usually my Christmas Club. Another thing, it’s been so easy to shop online during the pandemic, don’t you find? Here’s something I did yesterday (2/16): paid my Amazon Prime in full instead of monthly payments so I could take advantage before the new rates ($119 vs. $139). I was paying monthly on a credit card!
For me, it’s my current car, a 2012 Honda Civic, which I bought used about 2 years ago. Not only did I not negotiate the price, they tacked on like 2k on top of the price for something I still don’t understand.
In hindsight, I should have gone back and demanded a refund of the 2k, and I was prepared to do it, but my mom was visiting, and my attention was on her.
My word of advice: negotiate! I negotiated for my first new car, and the result was awesome, but I was so desperate to get a car, I just didn’t. Lesson learned!
