Comments on: Five Financial Mistakes That Can Cost You Significantly

By: Dean Voelker

Dean Voelker — Tue, 09 Feb 2010 14:34:20 +0000

Thanks for posting this article. There are still way too many people out there who cash in their 401(k) plans early and may not realize the 10% penalty for withdrawals under age 59 1/2.

Spending less than you make is critical also. Easy to say, but hard for many folks to do. Jonathan Chevreau, author of Findependence Day uses the motto – “Freedom! Not Stuff.” to define Financial Independence.

By: brad@northwesternmutual

brad@northwesternmutual — Mon, 08 Feb 2010 22:13:37 +0000

Great post, Charissa, especially your points about recognizing mistakes before they happen. These days, many of us are looking to reduce risks. Financial turmoil has made things more and more complicated, and now, more people are looking to get back-to-the-basics. To me, that means spending less than you earn, keeping some cash in a rainy day emergency fund, addressing the common risks that could affect long-term financial security, and recognizing common mistakes that people make. Keep up the good work!

By: PaydayLoner

PaydayLoner — Mon, 08 Feb 2010 21:42:07 +0000

I like that phrase “lifestyle creep,” LOL! I know just what you mean. A lot of times people look at the stated cost of something and don’t figure in all the extras that will wind up going along with it. “The gym membership is only X dollars a month…” not counting the nicer athletic clothes you’ll want to buy, the parking fee or the bus to get there, the drinks you’ll buy out of the vending machine, the new bag you’ll need to carry your clothes there. After all that, it’s not really just X dollars a month anymore. Multiply that by everything you add to your budget, and pretty soon it’s way more than you meant to spend.

By: Ken

Ken — Mon, 08 Feb 2010 20:23:09 +0000

Spending less than you make …it sounds so simple yet so many miss this important tip….I’ve had this problem lately…getting a heads up on the ‘extras’ that come with owning a home…Good post.

By: Credit Girl

Credit Girl — Mon, 08 Feb 2010 16:22:19 +0000

DJ- I totally agree. Not taking advantage of things like financial aid and free money through scholarships is simply stupid… All great points presented. Currently, I am trying to live under my means by cutting a little bit of costs here and there and I think it really helps if you can save say $100 a month or so.

By: DJ

DJ — Mon, 08 Feb 2010 15:43:51 +0000

I would humbly submit that paying too much money for a college education by not maximizing your free grant aid and scholarships would be a huge drain on any person’s finances, whether you are the parents funding a child’s college tuition bill, or a student paying your own way!

Say what you will about the federal government, there are numerous education grants available (both need based and non-need based).

Also, by fully understanding how student loans work, you will maximize your student loan borrowing eg. best interest rates, best repayment terms, forbearance/deferment options.

In my opinion, there is a lot of money lost and needlessly wasted in this area of our financial lives.