We know there are a lot of smart cookies out there with regard to managing money and building financial security. We've asked a few of you to share:

What are the smartest and dumbest things you've ever done with regard to money?

Feel free to chime in with your best money moments and your money bloopers...

The dumbest thing I ever did regarding finances was to completely ignore them for fifty years! When I married in the 1950s, for most of us women, the male made all or most of the monetary decisions I guess I blindly trusted that he knew what he was doing and that I would be taken care of

Very late in life, we faced financial disaster, and I made the startling discovery that my judgment was better than my spouse’s. I wasn’t a financial wizard or even mathematically inclined, but I had enough common sense and good judgment to handle my finances. And I knew to seek help when I needed it.

The second dumbest thing I did is related to the first—I agreed to, and signed my name to, a financial transaction which I instinctively and logically knew was unsound. It has been very detrimental to our financial stability. I didn’t yet trust my judgment enough to stand up and demand that my opinion be given as much weight as his.

One of the smartest things I ever did (but didn’t realize it at the time) was to establish a retirement fund early on through my place of work—and that was long before I was giving much regard to money! Even though it’s small by some standards, the amount that has accumulated provides a sense of security and will, with other resources, enable us to have, if not a luxurious, at least an adequate income in retirement.

Maintaining sound finances has now taken top priority in my life—a complete 360 degree turn from my earlier attitude toward money. I track our monthly expenses and actively think how they might be reduced. I know exactly how much income will be available when I am no longer employed and I am actively planning for my retirement. I have overseen refinancing our mortgage to obtain a better interest rate. I exert my influence to keep us debt-free, maintaining zero credit card balances. We think at least 3 times before any expenditure, large or small.

Maybe you could call it “thinking monetarily”!

The smartest thing I ever did was stay out of debt. Early on in my marriage a very good friend, an attorney, hounded my husband and I to stay out of debt. Drove me crazy but we were pretty good about it. When my husband died in an accident, it was the only thing that saved me. We didn’t have life insurance (see dumbest move below), and having very little debt meant I had some financial cushion to help me re-establish myself. Lesson there is, don’t think bad stuff can’t happen to you. I never thought that could happen to me.

Second thing was finally committing to getting a good financial advisor to help me. I often procrastinate because I don’t know how to make the perfect choice. Thankfully, I finally realized that I didn’t need the Warren Buffett of advisors (whew, that took the pressure off!)…if mine was merely good, it would be 1000% better than what I was doing.

Dumbest thing was not being on top of my husband about life insurance and wills. I worked for him, no career really. We didn’t have kids and so didn’t put a high priority on life insurance. I could always work right? Well, it takes a long time to move from not working, no career, to standing on your own financial feet. If you have debt, you’re in big trouble. Then, hubbie had drafted a will but never signed it…that meant the estate had to go into probate and it opened a big can of costly worms not to mention that it became public record. Not ideal to say the least.

Can't stress how important it is to not only talk about your own finances, but to talk to your daughters about their financial futures!

Another excellent web site is WISER (Women's Institute for a Secure Retirement)at www.wiserwomen.org. They also joined forces with the Heinz Family Philanthropies to produce an downloadable ebook that's been recognized by the Wall Street Journal. Go to www.heinzfamily.org/programs/ebook.html.

My biggest mistake has been making investment decisions based on the best performers of the previous years, instead of looking forward. My best move has been learning about investing and paying attention to my investments.

Post edited by: thefinancialwoman, at: 2009/07/21 17:17

Financial Woman,

Hmmm, how does one figure out what investments are likely to do going forward? I don't think this is a lesson I've learned so I'm all ears. :)

Allison