Many people make financial mistakes throughout their lives. It may be spending too much money on novelty items, racking up credit card debt or simply not saving enough. Making these mistakes is not the only way to learn valuable money lessons. You can also seek advice from mentors and professionals. Here are three real retirees and their life financial errors that affected their long-term life goals.
Rea Hunter from Saddle River, New Jersey neglected to invest in her 20s. She got her financial wake up call in her 20s after her father passed. After seeing her mother struggling during the time until her father’s will was probated, Hunter promised she would be more financially responsible and protect her own financial security. Hunter also says that she wishes she learned more about the stock market in order to make good investments to help in the long term.
Donald Dixon, a retired musician from New York City, spent more money than he had. He described his spending as spending money like a millionaire. Although he had a decent salary, he spent too much money on dates, sporting events and spoiling himself. Dixon finally got his wake up call and started to contribute 6 percent of his paycheck to a 401(k) in his 30s. Had he prioritized his saving earlier, he would have had a huge amount of savings instead of the moderate one he has today.
Drew Deininger, a retired airline customer from Sarasota, Florida, invested in an opportunity without doing proper research. The opportunity was to purchase investment shares in a company that sold antiques. His return was estimated at 25 percent, but he ended up losing $20,000. Instead of investing in antiques, Deininger wishes he had invested more money in his house renovation in Rhode Island.