Horrible money mistakes I made and lessons to take away
1. Investing in companies at IPO
Investing into a business when it goes public is the worst thing you can do. Maybe not if you are going to hold for a few decades, but definitely in the short term. Businesses go public to raise funds, but also for investors and employees to cash out.
As an investor if you put money in at the IPO you are often putting money in at the highest valuation possible and then the stock will go back down to its normal valuation.
2. Not getting the 401k match at my first salaried job
They did not ask me and I did not ask them about it. I just took the salary they offered. I was young and it was a really small company. The HR person left right after I was hired.
3. Working part time at low paid jobs for too long
I didn't know how to build up skills or sell something to someone. I worked a ton of low paid jobs and never negotiated for my time or worth.
Today is a different story. I know how to build skills. Know how to properly look for a job. How to negotiate for my value. Learn about a product in order to sell it etc.
I will do a future list, talking to myself about finding a great future job.
4. Chasing dividend yields
One of the worst mistakes I have ever made. I invested into oil stocks because they had a good dividend. But they stocks paid out too much and the price of oil went down, leaving the businesses with no cash. Bankruptcy
5. Buying crap to impress other people
I remember buying an expensive watch because someone thought it was cool. So many shitty clothing items because I wanted to be in style. Golf clubs because I thought rich people played golf.
Never follow the crowd. Never pay full price. Only buy things you will actually use.
6. Not creating goals and just thinking good things would happen
Good things will happen to you. I'm an optimist at heart. But you will never build your own profitable business or career without setting goals for yourself.
Your goals are you telling the universe what you want. Be intentional about what you want your future to look like and then take baby steps toward that dream.
7. Not being focused enough
The world is full of distractions. I already told you I had a million different small jobs. Pick you lane and stay in it.
8. Being in a toxic relationship
If someone is not your champion, they are not for you.
I stayed in a bad relationship way too long and it led to disaster. If you know it is not right be honest with that person and yourself and both of you should move on.
9. Not investing more sooner
My parents never invested in the stock market. I had to teach myself everything I know about investing. So I was a little late to the stock market party.
But I eventually made it and now I on the right path.
10. Not leaning into the thing that I am actually good at and trying to be better at bad things
Like so many parents, mine wanted me to be a doctor. Except that I am not good at and do not enjoy science. My worst class was high school chemistry. The periodic table might as well be in Hebrew.
Stop trying to force yourself to be good at something you do not enjoy, be yourself and lean into the things you are interested in.
11. Investing into things because they were ‘hot’ but I know nothing about
There will always be a 'hot' new thing. Business, clothing, movie, crypto, fund etc.
Take your time and do research.
Remember that something's will never go out of style: real estate, internet, health care.
Find what you believe in and invest in that.
12. Not being more creative earlier
It was until I hit the age of 30 that I really tapped into my creativity. I wish I had found my voice a little bit earlier.
13. Not traveling more
Now that I have travelled the world, I see how many more possibilities there are. There are so many people to reach and connect with. I wish my eyes had been opened sooner