No. 1 - What Not To Do! Learn from the Financial Mistakes of Others!

1. Don't Goof Off in College

When Lynne started college, she was fortunate enough to receive grants based on her low income. However, she didn't take it seriously at first, and ended up slacking off. She dropped some classes and failed a couple also, which caused her to lose her grants. As a result, she had to cover her tuition on her own, a costly mistake that set her back thousands of dollars and delayed her path to financial independence. If you're planning to go to college, make sure you take it seriously. Don't waste your time or money—your future self will be grateful you did.

2. If You Take Out School Loans, Only Take the Minimum Needed for Tuition and Books and Pay It Off as Quickly as Possible

Jenny couldn't afford tuition on her own, so she took out loans to cover the costs. However, instead of borrowing only what was necessary for tuition and books, she maxed out her loan limit each semester. This decision hindered her financial growth, as she ended up with a large amount to repay. In hindsight, she should have borrowed just the minimum required and worked to pay it off quickly. She also put her loans into forbearance several times, which only added more interest on top of what she already owed. Fifteen years later, she's not even close to paying off the loans. Learn from Jenny's mistake—be mindful of how much you borrow and pay it off efficiently or don't borrow at all. 

3. Limit Going Out to Restaurants and Bars

Michael loved going out to bars and restaurants with his friends. He enjoyed the convenience, the chance to skip the dishes, and the fun of people-watching in a lively atmosphere. But one month, he decided to tally up how much he was spending on eating out—and was shocked to find it totaled over a thousand dollars. That's over $12,000 a year!!!!!!! This was just restaurants. It didn't even include the times that he did go to the grocery store. While dining out can be a fun experience, doing it regularly will keep you from getting ahead financially. Take a lesson from Michael—make eating out a rare treat, not a routine. Cooking at home is always cheaper. Find ways to make being at home fun. Have a picnic in your yard. Invite friends over for a potluck. All of these ideas are cheaper than eating out. Plus you save gas money also. Start adding up what you pay each month at restaurants. You might be very shocked. Think of what else you could do with that money.

4. Never Buy a New Vehicle

James bought a new vehicle with monthly payments of $745, feeling confident because he had a well-paying job. But a year and a half later, he lost his job and couldn’t afford the payments. He tried selling the car, but it was worth less than he owed, leaving him “upside down” on the loan. He continued struggling to make the payments, realizing that while the excitement of a new car is fleeting, the hefty payments and high interest last for years. Was the initial thrill really worth it?

5. Think Long and Hard Before Making Any Major Purchases

Sometimes, excitement can cloud our judgment. Sofie, in her twenties, was thrilled to buy a new home, convinced it would be a great investment. She planned to fix it up and resell it for a profit—after all, it seemed better than paying rent. When she got approved for the loan, she was over the moon. But her more experienced friends, aware of the market conditions, warned her against it. Unfortunately, Sofie bought right before the real estate market crashed. The loan she took was a terrible deal—fixed for only a few years. She didn't do her research because all she could think about was owning that house. For years, she struggled to make payments, tried renting it out, but was burned by tenants, and even attempted refinancing, only to be turned down as the house’s value plummeted. Eventually, it was foreclosed. The lesson? Do your homework before making any major purchase. Pay attention to market conditions.