Learn from Your Financial Mistakes
Part of being consumer savvy involves coming to terms with our past financial mistakes. It’s important to realize that financial mistakes do present an opportunity for growth and improvement. Don’t dread financial mistakes. That can only lead you to make more of them inadvertently due to the stress you put upon yourself. Embrace financial mistakes as a chance for you to learn and make better financial decisions in the future.
In The Beginning…
Think back to when you got your first credit card. How old were you? Was it a major credit card such as Visa or was it a department store credit card? Most likely it was a credit card that had a somewhat low credit limit to start. Then, after making payments for several months, you probably got another offer with maybe a higher credit limit. Did you have any financial mistakes at that time? If you’re like many young Americans, you might have had your credit card charged to the limit within a mere few months. That is definitely a financial mistake.
If you had the discipline at the time and paid off your balances rather quickly, then give yourself an ‘A’ in credit 101. However, if you are like most of Americans, you probably didn’t clear your balances quickly and you started a downward spiral into debt.
Learning from Past Mistakes
Don’t despair if your credit lesson didn’t work out for you. It simply gave you the opportunity to chalk that one up for experience. By learning from financial mistakes, you will be able to use credit more wisely in the future. The typical working American individual has increasing income throughout the years. So, this allows for the opportunity to make better credit decisions in the future when more money is involved. You may have gotten a ‘C’ in “Credit 101”, but it provided you the opportunity to get ‘A’s later on.
Now lets assume that you never learned from you credit mistakes. You have been getting ‘C’s, ‘D’s, or ‘F’s in all of your credit lessons. There still is no reason to give up trying to turn this around. It makes no logical sense to chase bad decisions with more bad decisions. Try to look at the your past spending history and experience with credit cards. Identity your financial mistakes and figure out a way to address them so you don’t repeat these mistakes again.