People Break Down The Worst Financial Decisions They've Ever Made

Not everyone is good with money. That's why professions like financial manager and accountant exist.

But not everybody can afford those services. So people who aren't good with money might be left to their own devices.

Mistakes may be made.

Reddit user Exotic-Example-1572 asked:

"What’s the worst financial decision you’ve ever made, and what did you learn from it?"

Gambling

"Gambling. You can't outgamble your losses."

"Losing is not a problem in gambling, if you lost everytime you will not gamble anymore. Winning on the other hand is the problem."

"The more you win, the more you increase your stakes. You lose some, win some. No big deal, I went to a casino once with 2 euros and came out with 500, the next day went in with 150 and ended up with -300 euros."

"It's a brutal cycle where the money you make will not be enough to make long term changes in your life and you'll loose them anyway on the next round of gambling."

"Meanwhile, your brain gets so hooked on the high, that you make radical, illogical financial decisions on your daily life even if it's not gambling."

"Like buying expensive stuff for your soulmate, cause you either feel bad losing the same amount last night or feel confident that you can make more money if you won."

~ No-Compote-2127

College

"Going to a four-year university right after high school. I could’ve gotten my gen-eds done at community college for free and saved so much money before transferring to a 4-year. I was too worried about what other people like my parents, classmates, and guidance counselors thought of me. If I have kids of my own one day I’ll recommend they go to community college first."

~ EnchantedClamCake

Automobile

"I bought a 2015 Jeep Renegade, FWD, automatic, brand new. I learned, never buy the brand new model of a car. That car was the biggest piece of sh*t on wheels I had ever driven. It was way terrible on gas from what was listed. It was bad shifting between 1st and 2nd gears, and would only ever go into the 9th gear if you were going downhill at 70+ mph. It would have weird electrical glitches in the rain. When the battery died, it broke the computer so it wouldn't start, plus, it had a weird bug that drained the battery way fast, and it would need a new one in less than 2 years. It would have the check engine light pop on constantly because of the capless fuel tank."

~ powerlesshero111

Marriage

"Marrying the wrong person."

"Don’t marry the wrong person."

~ leons_getting_larger

"People say things like 'when you know, you know'. And that’s true. But you can find specific things to point to, too."

"Do they ever do anything kind for you, without being asked? Do you have any hobbies, and how do they feel about said hobbies?"

"Have you made any big financial decisions with them? How are they in a crisis situation? Do they get along with your family? Do you get along with theirs?"

"Obviously love is a huge part of it, but ultimately love is subjective. The stuff above, that’s all objective."

"My wife has supported my career moves, acted with grace when our dog was sick, put together furniture with me (which is arguably the toughest thing on this list), surprises me with completed chores or things she bought as gifts, loves my family, and I’m a huge collector and painter of action figures, something she has never judged me for or complained about."

"Obviously love is a big factor, but these are the little things that come to mind for me when I think about what made me realize I wanted to marry her. I still waited a long time, because we were young when we started dating, but I knew pretty early on."

"I waited because we hadn’t been through a lot of adult situations or tests, and I didn’t know if either of us would meet each other’s expectations."

"Just my two cents."

~ space_age_stuff

Stocks

"Don’t try to buy your own stocks and expect to get a positive return unless you know what you’re doing. It’s index and mutual funds for me. Lesson learned."

~ Important_Stroke_myc

"I bought $5000 of a stock at 11:30 AM. Ate lunch. Company went bankrupt by the time I got back to my desk at 1:00 PM."

~ deadpuppet137

Insurance Claims

"Paying for insurance but not following through on claims. Got trip insurance for my honeymoon, had a medical incident and couldn't go."

"I made a call to see if I was covered, I was and I was supposed to follow up... but I didn't. I can't even remember why."

"$5000 down the drain."

"Now I follow up, not just on all my insurance claims but on everything that might get me money back: warranties, refunds, etc..."

"I refuse to leave money on the table out of laziness or convenience."

~ tsh87

401k

"Went through a divorce and cashed out my 401k to get rid of the debt, it was an easy button and I didn't look at all my options or ask anyone's advice."

"I was 37. I literally took 14 years of my work life that I'd saved and threw it away."

"I started over at 37 and am now financially healthy with my new husband, but I know it would have added another half mil or more to my balances and I could retire earlier."

~ DeeDleAnnRazor

Loan

"Got a car loan at 10% when prime was 3%, Never trust the salesman. Claimed the 10% was just a place holder until the banks opened."

~ Gomez-16

Moving

"Move without securing a job first because I had a good amount saved up. It took me 6 months to find a job despite being in a high demand profession and with experience."

"The job market is tough af. I had $22,000 saved up. Drained it all."

~ Old-Body5400

Parents

"I've pissed a lot of money into my parents' situation. I've come to the bitter realization that all their problems are the result of poor decisions and bad behavior, and no amount of money will ever dig them out of the hole they're in."

~ Aniwaya1

"Gosh this is a frequent fight with my husband. His mom has a good job but is just a chronic overspender and then needs us to bail her out."

"I know sh*t happens, but I can’t imagine how humiliated I would be, at my big age, asking my adult children for money. Parents are supposed to be able to cushion their kids if they fall financially, not the other way around."

"I think a lot of them don’t feel shame in asking and see it almost as reparations for raising the adult child(ren)… that they chose to have."

~ currycurrycurry15

Legos

"Legos long term strategy in the 90s was to hook kids on them and then drop their dream sets when they had the money."

"I'm still learning from it."

~ SilentSamurai

"Right there with ya… it’s an expensive hobby! I just finished Notre Dame, and I’ve spread the Lego addiction virus to several of my friends as well."

"A friend of mine came over and saw my Lego sets and remarked how cool they were, and how he had no idea they made adult sets, and next thing you know he’s got a whole room dedicated to Lego."

~ jhumph88

Career

"Spent $100k to get a commercial helicopter license and then realised the life of a heli pilot wasn't good at all. Fixed term contract work, traveling around the country looking for work, low pay, couldn't buy a house, build a relationship, have kids in the way I wanted."

"Took a desk job instead and took 12 years to pay the loan back. Never flew again. My young brain got swept away with the idea of being a helicopter pilot without thinking it through."

"In the end it worked out, apart from loving the flight training and living at the airport, I also met my now wife. So the way I see it, is it cost $100k to meet my wife who is now the guiding light in my life."

~ PilotPlangy

Lending

"Do NOT, under any circumstances, loan money to a friend or co-sign any loans with them. It messes up your life for a long time when they do not pay their bills."

~ dog4cat2

"Lent a friend maybe $200 over a few months. I doubt I’ll ever see it (or him, for that matter) ever again."

~ EvilPopMogeko

"I gave an ex-friend $600 to bail him out of a bad situation. Kept gently asking when he could start paying me back for like a year before I gave up. Haven’t spoken to him since."

"I borrowed around $300 from a friend though, and while it did take me some months to pay it back, I finally did. Feels good to get that weight off your chest."

~ Maleficent-Heart8595

House

"I had a job with a startup where the owner gave me some unrealistic goals and told me if I hit them, he'd make it worth it to me. I had nothing better going on, so I said 'f*ck it, I'll take that chance'."

"I was salaried, so only getting paid for my 40 hours, while working 60+ hours a week for about a year. I hit the goals though and he surprisingly followed through. He gave me a huge under the table bonus. More than I would've made if he'd just paid me the overtime."

"What did I do with that money? He said I should buy a house, it's enough for a down payment and interest rates were really low at the time."

"Instead I bought my dream car (a 1970 challenger someone had thrown a 440 and T56 transmission into)."

"Don't get me wrong, I love that car, but houses then literally cost half what they do now and I still kick myself every time I think about it."

~ Judge_Bredd3

Inheritance

"Got 100k from my mom's life insurance and blew it within a few years. I was 19."

"And so dumb. And so depressed. With no guidance. I learned the importance of saving.

~ sandraver

"I had this exact same experience—my mom died when I was 18, I got a $100k life insurance payout and it was gone by the time I was 20."

"I’m 35 now and that experience remains the biggest life lesson I’ve learned."

~ notcool_neverwas

What was your worst financial decision?