Get Rich Slowly has a post about coping with financial mistakes. It is a reproduction of an article that he found on another blog. In essence, it talks about dealing with financial setbacks. The best part about the article, though, is that the author acknowledges that we are all human, and that we make mistakes. What’s important is not letting mistakes rule your life (or your finances) and always having a plan B.
I have made many many many mistakes, financially and emotionally in my life. When I first started trading with Sharebuilders, it was mainly because I had seen a short segment on the Today Show (I think!) about starting off an investment in a company that you like and that you can start small. At the same time, I received an email from MyPoints.com about sharebuilders and I thought, aha! Small amounts of money, a little bit at a time. And taking pointers from the segment about investing in something you know (they gave an example of a mom giving a share of Wet Seals to her kid because her daughter likes their clothes, so it gives them a feeling of ownership, etc etc), I bought shares from Starbucks. And every month, I pay for a subscription so that I can keep buying shares from Starbucks on a bi-monthly basis. Not that investing is bad. What is bad is that I didn’t do my homework. I didn’t investigate properly whether or not the company was doing well, if they had good principles, etc. I basically bought it because it was a rush. Like buying new shoes kind of rush. And now I”m paying for it. I don’t know what to do with it. I would like to get rid of it…but the whole IRS and dealing with that kind of scares me. Yes, educating myself about my finances would probably kick me out of the inertia. But right now, its something I don’t want to deal with.
At some point, I will. But I think for now, I’m going to play it safe. I’ve started a Roth IRA account in anticipation of the fact that at some point, I probably will grow old. But being a foreign citizen living here has provided a lot of hoops to jump when it comes to finances. Trying to open an account with TD Ameritrade has proven to be very frustrating, even when I went to their branch in person. I’m not really sure I really want to deal with it. The only reason why I tried to open an account was to take advantage of the SuzeOrman offer in the first place. I think I’m just going to stick with savings and CDs for now until my status changes. In the meantime, I’m going to do my best to update and educate myself about money while trying to finish school.