SmartMoney recently ran an article about seven money mistakes to avoid:
- Misidentified priorities. Clipping coupons to save a nickel while paying 15-20% interest on your American Express (NYSE: AXP) card.
- Overly-cautious investing. The government appreciates you hoarding those 20-year old U.S. savings bonds.
- Misunderstanding risk; e,g., buying asteroid insurance instead of long-term care.
- Procrastination. Putting off funding that 401K, for example.
- Throwing good money after bad. Perhaps the U.S. government should consider this one!
- Letting your ego guide your decisions, e.g., "Who are you to tell me I should sell my Enron!"
- Following the crowd, e.g. "I gotta get me some WorldCom."
I thought of a few money mistakes that I might add to such a list:
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Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
