Financial Regrets: A Personal Finance Writer’s Blunders in 2023

As a personal finance writer, money is perpetually on my mind. Yet, it doesn’t guarantee infallible decision-making when it comes to my personal finances. Despite having an MBA, covering new financial products, and interviewing money-saving experts, my husband and I still made our fair share of financial blunders in 2023.

If you’re feeling guilty about your less-than-ideal money moves last year, you’re not alone. Here are the worst money mistakes I made in 2023, along with lessons learned to help you avoid similar pitfalls:

1. Failing to Max Out My Roth IRA:

I had ambitious plans to max out my Roth IRA in 2023, but fell short. The annual contribution limit was $6,500 ($7,500 for those 50 or older). While I haven’t given up, I’m still contributing towards the 2023 limit until the tax filing deadline.

Lesson Learned: To avoid a similar situation in 2024, I’ll divide the $7,000 limit by the remaining months of the year and set aside the appropriate monthly amount. This way, I’ll be on track to max out my contributions.

2. Overspending on Black Friday:

I love a good sale, but Black Friday 2023 took it too far. We found great deals on regular expenses like gift card bonuses at restaurants, museum membership renewals, and winter apparel. While we saved money, we didn’t budget for the November spending spree, resulting in a hefty credit card bill.

Lesson Learned: This year, we’ll plan ahead by mapping out potential expenses and setting aside money for them.

3. Spending Too Much at the Supermarket:

After reducing takeout during COVID, we vowed to be smarter about grocery shopping in 2023. However, we underestimated the costs of cooking at home. Frequent trips to the store added up quickly.

Lesson Learned: In 2024, we’ll consider the cost of recipes before making them. If a recipe calls for expensive ingredients, we’ll balance it out with cheaper options.

4. Putting Aside Too Little in Savings:

Despite our best intentions, we often found ourselves with little left at the end of the month for savings. We need to establish a budget and set a specific amount to automatically transfer to savings each month.

Lesson Learned: Prioritizing savings is crucial. We’ll set up a realistic budget and stick to it.

5. Not Exploring Annuities:

I regret not seriously considering annuities, which are insurance contracts providing a guaranteed income stream. They’re often purchased by retirees, but with current high rates of return, they can benefit anyone.

For example, Gainbridge’s FastBreak Annuity offers a 5.80% APY*, locked in for a set term (typically 3-10 years). There’s no risk involved, making it an attractive investment option. I plan to explore this further in 2024.

Lesson Learned: Annuities can provide a steady income stream in retirement. I’ll research them more thoroughly in 2024.

6. Accepting the First Quote for a Major Home Repair:

When our air conditioner broke during a heatwave, we panicked and hired the only company available the next day. They made a temporary repair, but the entire HVAC unit needed to be replaced.

To save time, we opted against shopping around for quotes, which likely cost us thousands extra. From now on, we’ll always get multiple quotes for expensive home repairs.

Lesson Learned: Getting multiple quotes for major home repairs is essential. Rushing into a decision can be costly.

Conclusion:

Reflecting on these financial blunders, I’ve learned valuable lessons for 2024. I’ll prioritize maxing out my Roth IRA, budget more effectively, explore annuities, and get multiple quotes for major home repairs. By implementing these changes, I hope to make smarter financial decisions in the year ahead.

Remember, everyone makes financial mistakes, and the key is to learn from them and make better choices moving forward.