What did we learn from our biggest financial mistakes
June 11, 2021
What better way to prevent making common mistakes than to learn from other people’s experiences? So for today’s post, I asked members of the Doceo team about their biggest financial mistakes and the lessons they’ve learnt from this. This is bound to be a fun read so feel free to grab your favourite drink and get ready to learn!
1: What’s the biggest financial mistake you’ve ever made?
Seun: Leaving money to sit in savings accounts instead of investing my money.
Steph: I regret not investing the entirety of my LPC grant as soon as I got it. In my opinion, savings only really make sense to cover day to day emergencies like a car breaking down. There’s no need to have £10,000 in savings when that money could be making money through an investment. Also, the temptation to just save everything rather than invest some money is higher because it’s a bit easier to access and just withdraw money from a savings account than from an investment.
Zoë: Nothing ground breaking but mine would definitely be the many times I’ve fallen victim to the impulse purchase and not ended up using the item. I’ve started doing this exercise where if I’m not 100% sure I need it, I’ll wait two weeks. If my life hasn’t been affected then I don’t need it. This mindset saved me from buying an iPad a couple months ago.
2: What’s one thing you would say every student should understand about money and their finances?
Seun: Compound interest is so powerful. Start saving and investing early and be disciplined – when it comes to finances, discipline is paramount.
Steph: Take the time to learn more about how to protect your money and make it work for you instead of just focusing on how to make more and more money. There’s no point having multiple streams of income if you’re not managing your money efficiently and still spending on things which aren’t important to you.
Zoë: Learn how to become resourceful. Sometimes you don’t need something new and you can work with what you have. Resourcefulness can even open up streams of income for you. Is there something you’re good at and enjoy doing; why not offer that service to others and charge them for it?
3: What’s an app or a system you would recommend for managing your money?
Seun: Try to create a system that ensures you’ll stay committed. That can be an app, having a savings/investing partner, circle, community, or just your own personal determination and discipline. Accountability and community can really help in this process.
Steph: Emma is a godsend. It even tells you what your current net worth is and provides great tips for improving your wealth.
Zoë: I have a budget spreadsheet, which I update every couple of months. My expenses are quite fixed so I don’t need to check it every week, but it does help keep me accountable. I also would like to second Emma which Steph suggested, it gives amazing insights!
Well, it looks like I’ll have to check out the app everyone’s been recommending: Emma! Investing also seems to be a big theme in today’s post so I’d love to know: what does investing mean to you?