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Your dumb money mistakes!

Last week we asked for your dumbest money moments - and you absolutely delivered with a huge lot of fantastic stories.

Here’s some that had us feeling the pain:

“When I was 20 I put down a large deposit for a holiday with 2 friends in Europe. As I had the money available I put down the deposit for all 3 of us and they were going to pay me back. One of my friends decided to pull out of the holiday and not pay for any of the non-refundable deposit! I only got back half of what she owed me.”

“Ugh. Buying an 11 year old Mini Cooper from a neighbour. First week was $1100 to replace a rocker cover. Second week was a $400 battery, by the 4th week of ownership we were told the engine needed a rebuild which was going to cost $5,000. We lost $7,000 on it in less than 2 months. Bought a Mazda, solid ever since.”

“On my very 1st eBay transaction over 20 years ago, the seller convinced me to bypass the trade on eBay & pay him $1K directly via Western Union for a brand new digital camera. Suffice to say, I never got my item & later discovered that the payment was diverted to Kiev. 🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️”

“Covid. Early 2020. Webjet shares dropping in price. Decide to buy around $10 a share. Watch price plummet down to $2. Webjet do a capital raise and offer shareholders an opportunity to buy their same number of shares at $1.90 a piece. I decide against it. Watch share price recover to ~$7 to this day. Missed a massive return and still haven't made my original investment back.”

Man, what can we say? Equity Mates are a resilient bunch! Props to you all for being so vulnerable and sharing so many stories, but also bouncing back and becoming part of the community. Mistakes are obviously a part of life, but it doesn’t feel good when you lose your hard earned dollars.

So. What are some key mistakes you should try to avoid?

1. FOMOing into a Stock. Fear of missing out (FOMO) can lead to impulsive decisions. Don't chase after hot stocks without proper research. Remember that there will always be new opportunities.

2. Paying Too Much Brokerage. High brokerage costs can eat into your returns, especially if you're making frequent small trades. Research and compare different brokerage platforms to find one with competitive rates.

3. Trying to time the market and overtrading. This can be really counterproductive. Even professional investors often struggle to consistently time the market correctly. Overtrading increases transaction costs, while reducing the potential for compounding returns.

4. Being Impatient. Investing is a long-term endeavour. Avoid making hasty decisions based on short-term market fluctuations. Be patient and stay focused on your investment strategy, even during challenging times.

5. Lack of Research. Thoroughly research any investment before committing your funds. Understand the company's financials, industry trends, competitive advantages, potential risks and avoid blind investments based on tips or speculation!

Listen to Get Started Investing today and you’ll hear Bryce and Ren react to your mistakes, and share some of their own battles.

Tell us your dumb money mistakes and win!

Dumb Money tells the story of one of the wildest Wall Street moments in recent memory - when a bunch of Redditors took down some of the largest investors in the world with the Game Stop short squeeze. This is a story that went from the homes of Redditors to Wall Street and ultimately, the halls of US Congress.

We’re excited to be offering a limited number of double passes to an advance screening of Dumb Money to Equity Mates. All you need to do is share a 'dumb money' decision you've made.

The staggering amount of money being paid to Australian kids…

It's a tricky question for every parent: what is the right amount of pocket money?

Well, according to a recent survey - the average Australian child is getting $21 a week in pocket money. Which works out to be $1,100 a year. That's a lot to spend at the school canteen!

If you’re wondering about how to best approach pocket money with your kids, Ren gives his two cents in this article.

And remember, if you’re thinking about getting them into investing, our new book Don’t Stress, Just Invest tells you how to set up your investments and get on with life.