Post Your Lessons Learned

[james.hendrickson]

Hi Guys,

For every one poster here in the forums - we have at least 10 lurkers. For the benefit of people who come here to learn about how to better manage their finances, how about posting the lessons you've learned in your personal finance careers.

I'll start.

1. Spend less than you earn.

2. Invest consistently over time.

3. Don't carry credit card debt.

[Petunia 100]

This is a great topic!

Hmm. I would have to say that I have learned the hard way:

1. No one cares about your financial well being as much as you do. Make it a point to educate yourself about financial topics. Salespeople really don't have YOUR best interests in mind.

2. Do not get married without understanding EXACTLY what you are getting yourself into. What debts will now be yours? What attitudes about money will you now have to work with?

3. Track your expenses. Use actual math; do not rely on your memory or your feelings about what you think you spend.

4. Make a plan. Whatever it is you hope to accomplish, it won't happen magically somehow. You can achieve pretty much anything you set your mind to, but you need a realistic plan you can work.

[TexasHusker]

I learned that, at least for me, the government-endorsed retirement savings plans (IRA, 401K, SEP, etc) have more minuses than pluses.

[97guns]

This is a great topic!

Hmm. I would have to say that I have learned the hard way:

1. No one cares about your financial well being as much as you do. Make it a point to educate yourself about financial topics. Salespeople really don't have YOUR best interests in mind.

I have also learned (from experience) that most everyone out there will scam you , there are legitimate good friends but how many of your "friends" have burned you for money. I've seen so many scammers and been scammed myself that it really makes me question everyone I deal with unless I know and dealt with them before. It has been a costly lesson and I hope I've learned from it.

[saver17]

To always have a savings account that is not easily accessible. Which is why I opened a savings account online that does not have a card so it can grow faster. In the past I had my checking account and savings account with the same bank and was transferring money to myself all the time.

[saver17]

Hi Guys,

For every one poster here in the forums - we have at least 10 lurkers. For the benefit of people who come here to learn about how to better manage their finances, how about posting the lessons you've learned in your personal finance careers.

I'll start.

1. Spend less than you earn.

2. Invest consistently over time.

3. Don't carry credit card debt.

It's ok to carry small credit card debt that can be paid off the next month

[Petunia 100]

It's ok to carry small credit card debt that can be paid off the next month

Well, it's not illegal, but it's not a good idea.

[saver17]

Well, it's not illegal, but it's not a good idea.

Only if you are unemployed

[Petunia 100]

Only if you are unemployed

I think you are confusing "good idea" with something else. Survival mode when caught unprepared, perhaps.

[disneysteve]

It's ok to carry small credit card debt that can be paid off the next month

I'm not sure you understood James' point. This thread is about helping people "learn about how to better manage their finances". Carrying credit card debt is exactly the opposite of that.

[TexasHusker]

I'm not sure you understood James' point. This thread is about helping people "learn about how to better manage their finances". Carrying credit card debt is exactly the opposite of that.

If I read the post correctly, it is with the caveat that it can be paid off next month (presumably the next billing cycle). That's not carrying debt, but instead using your card instead of carrying cash. I think this is an excellent tip - especially if you have a rewards card. I paid for a chunk of our trip to St. Thomas last summer from reward points.

[disneysteve]

If I read the post correctly, it is with the caveat that it can be paid off next month (presumably the next billing cycle). That's not carrying debt, but instead using your card instead of carrying cash.

That's fine. If I misread that advice, I apologize. It wasn't stated clearly.

I am totally fine with responsible use of credit cards. Our personal credit card spending is between about $3,000 and $5,000 per month but it is always paid off in full each and every month. We never carry the debt until the following month (which is what it sounded like saver17 was suggesting).

[Petunia 100]

If I read the post correctly, it is with the caveat that it can be paid off next month (presumably the next billing cycle). That's not carrying debt, but instead using your card instead of carrying cash. I think this is an excellent tip - especially if you have a rewards card. I paid for a chunk of our trip to St. Thomas last summer from reward points.

S/he specifically said "carrying credit card debt". I take that to mean carrying credit card debt. When you pay your statement balance in full before the due date, you aren't carrying credit card debt. When you don't, you are.

[james.hendrickson]

Yes, by carrying credit card debt I had in mind the person who owes $5,000 on their cards and can't pay it off at the end of the month.

That is NOT something you want to do. Credit card balances can be very expensive to maintain. Interest rates can easily be upwards of 30% or higher, depending on the fees.

[saver17]

I'm not sure you understood James' point. This thread is about helping people "learn about how to better manage their finances". Carrying credit card debt is exactly the opposite of that.

Which is why I said it's ok to have a little debt that you know you can pay off the next month.

I didn't say go on a shopping spree and spend $500. I;m talking about a $100 or less