Even doing the wrong thing can be something you have to learn by learning. And that is, unfortunately, true in personal finance.
Ask a Bankrate expert. They regret their financial decisions early in their lives: how they invested, where they took away their savings, and how they borrowed and paid off their debts.
But keep their experience in mind. Then, I hope you don’t have to learn the same lesson in the difficult way.
Check your bank’s low interest rates or throw away your savings
Annastaplethe principal (credit card) does not remember her first savings account fondly.
I wish I had known before: “My first savings account was a major bank. It earned a small interest rate and charged a large monthly fee.”
What was costly: “In addition to the $200-$300 fees, the interest I was able to make increased.”
Why is this an important lesson: “I was losing money on my first account (my first account) rather than actually saving. I closed that account in 2020 and opened a high-yield savings account.
Matthew Goldberga senior reporter (consumer bank) said he also boarded a high-income savings train that was too late. Goldberg estimated that if he didn’t open his first account until 2019, he would “be between $500 and $2,000, perhaps because his purchasing power is preserved.”

“yes, Usually the rate is lowerBut I still make money that I’m proud of every month with interest payments,” Goldberg says. “And I’m outweighing inflation, so when I see my interests being credited, I feel really good about it every month.
The maximum amount will be donated to 401 (k).
Benne WilsonLeadwriters (credit cards) did not maximize the employer-provided retirement plans to their contribution limits, even if a company match was offered.

I wish I had known before: “All I saw was not understanding the joy of, but in the future, a small chunk of pay stolen in a future way. Combined interest. ”
What was costly: “$100,000 plus”
Why is this an important lesson: “Your retirement is faster than you think. You feel like you have it all over the world all the time Working on 401(k) Other retirement plans. I say: After you retire, you don’t have time to accomplish that to secure a nest egg big enough for you to enjoy yourself. ”
What if your company doesn’t offer matches? Luckily there are many Retirement Savings Vehicle. For example, if you are self-employed, consider a Solo 401 (k).
Establish and separate savings goals
Karen BennettSenior Writers (Deposits) look back and think about it quickly enough to meet their goals of traveling or purchasing a new car, with a few examples.

I wish I had known before: “To come up with clear savings goals and create different buckets to save for them.”
What was costly: “Ten thousands of people with extra savings”
Why is this an important lesson: “Saving money ahead of time means you don’t have to go into debt to pay these things. This is a great feeling.”
Tap credit card rewards (especially for free trips)
Katie Keltonthe senior writer (credit card) used cashback credit cards for most of her early adulthood. Looking back, she suffers from the “opportunity cost” of not hooking travel points instead.

I wish I had known before: “In my early 20s, I was able to cash in on more free trips, among other perks, about how valuable credit card rewards are.”
What was costly: “It’s hard to estimate because I’ve been able to get a welcome bonus of thousands of dollars over the years, in addition to my regular pay revenue. But I’ll roughly $5,000.”
Why is this an important lesson: “I traveled a lot in my 20s – Italy, Peru, Mexico, Northern Ireland, and across the US with friends. For most of these trips I didn’t earn or redeem one travel point or miles. Americans prefer cashback. I investigated When to get the best bonus For cards and How to combine rewards For higher values. Essentially, I gained a lot of knowledge about how to take advantage of the world of valuable rewards. Now my flight is covered in points. ”
Make index funds part of your portfolio
James RoyalPrincipal Writer (Investment), regrets, “Not moving faster to invest in strong stocks Index fundsto avoid “individual stock volatility.”

I wish I had known before: “How easy is it to invest in these funds and make money over time, even if you don’t have a lot of investment knowledge?”
What was costly: “Millions of dollars I’m starting to investand costs a few decades later (the chances of making money have been lost). ”
Why is this an important lesson: “The stock market can become volatile, but over time, “to the right” individuals can make a lot of money. You might think that stocks are just for the rich.
Always compare multiple mortgage lenders
Ted Rothmansenior industry analysts admitted the mistake of blindly following the mortgage lender of real estate agents. He only applied to one mortgage company before closing.

I wish I had known before: “I should have I went shopping Be more proactive. ”
What was costly: “I borrowed $417,000 at 4.625%. I don’t have a loan anymore, but if I had kept it for 30 years, I would have paid about $355,000.
Why is this an important lesson: “It’s a good idea to get at least three price estimates, especially when using something as expensive as a mortgage. But it’s also good advice for home renovations, insurance companies, car lenders and more.”
Consider the secondary costs of buying a home
Lauren NoukkiSenior Writer (Loan) recalled that her 29-year-old self had no full grasp of her homeowner’s malt post financial commitments, including property tax hikes and home maintenance. Her advice: Before you make an offer on real estate, build it into your budget.

I wish I had known before: “There are many other costs besides the things that come with buying a physical home.”
What was costly: “In the long term, thousands of dollars.”
Why is this an important lesson: “When it’s your first home, you probably don’t have what you need to fill and maintain the home… Maintenance is everything to you now, so repairs and stuff are in you and your wallet. All of that should be considered in your budget – and when you’re looking at the home.”
Consider paying for an additional mortgage
Linda Bellsenior writer (home lending), wants a conversation about how she and her husband paid off their 30-year mortgage.

I wish I had known before: “The importance of making additional mortgage payments… I hope we had a more intentional desire to defeat that principal in the early years.”
What was costly: “It’s difficult to estimate the overall financial impact of our mistakes, but over the years it probably costs tens of thousands of dollars in avoidable interest. The frustrating part was that most of the time I had extra money, but I didn’t realize what a difference those extra payments couldn’t make.”
Why is this an important lesson: “It’s not just that we were able to pay off our loans faster. The more we cut down on the principal, the less interest we are over time.”
Jeff OstrovskyPrincipal Writers (Home Lending) are proof that what is best for one consumer may not be for another. Ostrowski hopes he “not” I want to pay back my mortgage. ”

“Gived it Recent stock market boomI would have preferred to keep my mortgage balance up and put stock differences over my home,” he says.
Diversify your income and automate your savings
Danny Cueizyksenior writer (loan) and former mortgage loan originator say he was in his 40s when he realized that his “I-generation Life” did not support his past choice to take on debt. He wants you to understand the value of entrepreneurship and cash flow management, so you can reduce your dependence on your loans.

I wish I had known before: I have made many big decisions (because I’ve made (cross-country moves, buying investment property, etc., based on the idea of debt leverage rather than as a debt salesman (with a focus) rather than as a debt salesman) which has made me a crutch in my life. As a former debt salesperson, I have noticed that when it is necessary to save employment from student loans to student loans to mortgages, when sending clothes, when sending messages to people, from most loans, from most loans, from most loans, from most loans, from most loans, from most loans, from most loans. All sorts of debt afterwards. ”
What was costly: “It’s easy to get hundreds of thousands of dollars. I have a net worth over $1 million about 10 and a half years ago, which means I’ve put a huge amount of debt burden that will pay off for my mentality, the debt generated from my 25-year loan.”
Why is this an important lesson: “The swipe-and-go spending culture doesn’t help save. That’s all Americans have a low savings rate. In addition to looking at budget and loan shopping, Americans need to consider the revenue, skills and profits to adopt an entrepreneurial approach to their lives.”
How to improve your financial literacy
We, who have learned about personal finance as children, are more likely to deal with money more effectively as adults, at least in a certain way. Bankrate Financial Habits Survey. For the rest of us, we can learn some difficult lessons.
Learning doesn’t really end, whether you’re there or not Recently graduated university Or you already have an extensive credit history. Think of the 11 bankrate experts we interviewed report that they learned financial lessons in their late 20s to late 30s and in their 40s to early 50s.
And hey, if our experts didn’t know about this, you shouldn’t be feeling sick about your blind spot. Consider these additional tips to reveal them and avoid potential money mistakes.
Have you learned tough financial lessons? Please email the writer [email protected].