Your dumbest financial mistakes

[Williss2]

Before nursing school, and maybe even after getting those nice nursing checks, what were some of the dumbest purchases made. Big or small. I have heard some good financial advice on this site. But people learn from our mistakes too. Most of my dumb mistakes came from being young. As a teen my boyfriend (now husband) and I took his last paycheck from gettting fired and went to six flags. Spent the whole check, not knowing the next time we would have money. Once graduating, we ate out at least 4 times a week until someone on this site made me aware as to how much I was actually spending(Family of 4). I thought nursing school would be a bad investment when I racked up loans not knowing if I was gonna pass. But it was probably the best investment.

My best friend bought a current year STANDARD suzuki forenza for over twenty grand right out of nursing school. It immediately depreciated and she ended up in an upside down situation when trying to trade it in the next year.

[SharonH, RN]

I tried to save but that maney I saved I'm trying to use for the bachelors program. I've trimmed a lot already. But I. Think I'm going to call in on Suze Ormans show on Saturdays.

oooh, i love suze!! She's had nurses on her show before. I hope you are chosen.

[OCNRN63, RN]

I'm sure there are many out there who are able to become savvy investors, but can we really expect just anyone to be able to get that kind of returns of such projections? To me, it's much easier to save money than to "make it grow". I feel much more control over my spending choices than in taking calculated risks on investments. Investment education materials always ask you to balance your financial goals with your adversity to risk. The 'safer' your bet, the less your potential returns, but the less your potential losses as well. My emotions rebel at the thought that in attempting to achieve "financial security" one has to essentially gamble with their money!

The problem is, you will never be able to get very far with just a savings account, unless you are making serious bank at your job. You can invest in lower risk options if you're averse to risk; you'll still do better in the long run than you will with just a savings account. You have to think long term. Plus, participating in an employer based fund gives you the ability to have the employer contribute to your fund, something you won't get if you just save on your own.

I actually believe you should have both a long-term savings (retirement) and a regular savings as an "emergency" fund in case something comes up and you need access to money immediately. The money in the retirement fund should be untouchable. That's how I've been doing it; I really don't miss the money as it comes out of my paycheck before it's deposited.

[OCNRN63, RN]

That's why I appreciate this thread... even a dumb investment means that risk was taken, and the ability to take risks is valuable!

For some, risk-taking comes all too easily and they'd do well to heed advice to be cautious and prudent, but for folks like me, encouragement to take risks, and the inevitability of making some 'dumb financial mistakes' is helpful!

When you participate in a fund, you can take a self-eval which tells you how much risk you're likely to take (I'm guessing you would be "low risk" ). Most funds will have people you can talk to who will help you make selections based on how much risk you're willing to take. It's really not as bad as it sounds. Even with the ups and downs of the market, I have done far better than I would have just sticking money in a savings account. And BTW, I am pretty low risk myself, although I forced myself to invest with a more "moderate" risk level.

[MsBruiser]

Unfortunately, 1000k a month to put into retirement, at any age, isn't really realistic unless you're making a lot more money than the average nurse.

I think one should definitely find a good retirement plan and put money away, but we all manage to live ages 20-40 on much less, as well as ages 40-65 without a 3 million cushion.. I doubt it's necessary to have 3 mil. for your last 2-3 decades of life.. JMO

Nonsense...I've been saving $1,000 a month for as long as I have been an nurse. No problem at all.

[Flying ICU RN]

Anyone want to buy a share of my most valuable holding?

[smartnurse1982]

Nonsense...I've been saving $1,000 a month for as long as I have been an nurse. No problem at all.

No its not nonsense considering employers are cutting wages and we are in a recession with inflation through the roof.

If a bank fails and you have 3 million in it,the Fdic only insures $500,000.

[smartnurse1982]

Considering most Rn's pay is between 21/hr to 26/hr (averages) I think $1000 sounds far off to be saving every month.

[TheCommuter, BSN, RN]

Considering most Rn's pay is between 21/hr to 26/hr (averages) I think $1000 sounds far off to be saving every month.

RN pay rates are dependent upon the geographical region. For example, $21 to $26 hourly would be a new grad RN pay rate in the metro area in Texas where I reside. Experienced RNs are earning quite a bit more than that.

In addition, RNs in higher cost-of-living places such as San Francisco and New York City are going to be earning significantly more money. For example, the new grad in San Francisco can reasonably expect to earn a starting rate of more than $40 hourly (if they can manage to find a job).

[OCNRN63, RN]

No its not nonsense considering employers are cutting wages and we are in a recession with inflation through the roof.

If a bank fails and you have 3 million in it,the Fdic only insures $500,000.

That's why you don't put all your money in one place. Basic Economics 101.

[AlsgalRN]

My biggest financial mistake was not purchasing long care insurance. Three years ago, I was diagnosed with breast cancer at age 43. At the same time, my husband was diagnosed with ALS (amyotrophic lateral sclerosis) at age 48.

He now receives Medicare and I have him on my health insurance. Neither my insurance nor Medicare will pay for any assistance with his care. Medicaid would help but we cannot qualify. To qualify for Medicaid in this state you may own a home, one vehicle, and have no more than $2000 in cash. Receiving Medicaid would allow me to hire the help that would allow me to continue to work. The income from that work would disqualify him from receiving Medicaid. We are stuck.

I was the one who pushed for us to save for retirement. We would also have to spend all of that money (and pay the taxes on it as it has never been taxed) before any help is available to us.

My husband has chosen not to get a ventilator when the time comes. That time is coming soon. He has chosen to die so as to not impoverish me to pay for his care.

My biggest financial error was not getting that insurance.

[belgarion]

Another financial mistake - not pulling out my share of a family trust set up by my maternal great-grandfather during the oil boom years of the twenties and thirties. I was convinced by my parents that I was too young and dumb to have that kind of money so I left it alone and let my father keep control. After his death a few years back we all got a shock when we found out that he had managed to pi$$ away almost the whole thing. Instead of eight figure nest eggs my siblings and I each have around 200K, which is earmarked for my kids' education. That's why I had to find a new career when my last one dried up. Never give control of your finances to a family member.

[TDCHIM]

My biggest financial mistake was not purchasing long care insurance. Three years ago, I was diagnosed with breast cancer at age 43. At the same time, my husband was diagnosed with ALS (amyotrophic lateral sclerosis) at age 48.

He now receives Medicare and I have him on my health insurance. Neither my insurance nor Medicare will pay for any assistance with his care. Medicaid would help but we cannot qualify. To qualify for Medicaid in this state you may own a home, one vehicle, and have no more than $2000 in cash. Receiving Medicaid would allow me to hire the help that would allow me to continue to work. The income from that work would disqualify him from receiving Medicaid. We are stuck.

I was the one who pushed for us to save for retirement. We would also have to spend all of that money (and pay the taxes on it as it has never been taxed) before any help is available to us.

My husband has chosen not to get a ventilator when the time comes. That time is coming soon. He has chosen to die so as to not impoverish me to pay for his care.

My biggest financial error was not getting that insurance.

AlsgalRN, I cannot express how sorry I am to hear of the situation you and your husband are dealing with. I wish there were something I could do to help. Have you consulted a financial adviser or accountant specializing in this area to be sure there's no way you can successfully shift that money around and still qualify for assistance?

I had heard there were cases like this, but I never understood how stark the reality actually is. Thank you for sharing your story. My husband already has L/T care insurance, and once I'm out of school, I'm going to get it too. I've been talking to my parents about long-term care insurance because we learned about it in class. Now I'm going to do everything in my power to convince them to get it.

I'm not much on prayer, but for what it's worth, you and your husband will be in mine tonight.