Financial Experts Share Their Biggest Spending Regrets

From silly impulse buys to unnecessary splurges, there are plenty of deals you’ll regret when it’s time to pay. Fortunately, these experiences help us become smarter shoppers.

“It’s important to remember that spending regrets usually come with a lesson,” says founder Bola Sokunbi. smart girl finance. “Therefore, in order to more carefully plan your finances for the future, it’s important to assess what the lessons are. We all make money mistakes. Most importantly, I… We can learn from them.”

Below, Sokunbi and other financial experts share their biggest spending regrets and lessons learned from these mistakes.

“One of the things I regret most about spending money on is luxury items that I rarely use, especially designer handbags and other branded clothing in my 20s. I’m all for it, but it has to be reasonable considering the cost per wear. I had a collection of items that I hardly used, but it would have been a wiser investment to invest the money. Looking back, I learned this.

“Personally, I’ve learned to really appreciate expensive purchases. How can I use the item? Do I need that item? Can I put my money to better use as an investment? are questions I ask myself, and I encourage others to ask themselves as well. In the end, I downsized my collection of luxury bags and invested the money, even though I lost money on some. , the money grew in other things. But if I had invested the money, I could have earned more with appreciation and compound interest.” ― Sokunbi

“The only thing I regret spending is buying the latest model laptop. I ended up using it, but after a month I was just as happy with the previous model as I was with the latest model. That model is usually much cheaper. For example, the iPhone 14 is about $100 cheaper than the iPhone 15. The MacBook Pro is $900 more expensive than the MacBook Air. This doesn’t mean you have to choose the cheapest option, but it’s important to have a waiting period. For large purchases, we recommend a month. This will ensure that you don’t just shop around for the best price. It also gives you time to compare models. Are the new features worth the cost for you, or will you notice a difference? A few years ago, I bought a MacBook Pro instead of a MacBook Air when my old laptop broke. I bought it, but my excitement quickly waned when I realized that it didn’t really make any difference for the purposes I was using the laptop for other than having a touch bar on top. !” – Kendall Mead, Certified Financial Planner SoFi

“My biggest spending regret is spending over $50,000 on a wedding I didn’t want and only having to appease my Latina parents as my first daughter. I wanted them to have a wedding, so I ended up using $15,000 from my retirement account to pay for my wedding, and I was responsible for the rest. Now that I’m divorced, that kind of thing happens. Yes, it was definitely a waste of money and if I could do it all over again I would have done something smaller (honestly, I would have been better off not getting married).

“Just because society has normalized extravagant spending on things like weddings, buying a house, and a new car doesn’t mean you have to. Learn how to spend based on your values. In other words, think about what’s really important to you and spend your money accordingly, regardless of what’s “normal.” “- Janese Torres, creator and host of “”Yo quiero dineropersonal finance podcast

“I bought whole life insurance and I really regret it. I was 24 years old and knew nothing about insurance or investing. When I actually looked at the numbers and closed the account, I lost $17,000. One of the biggest lessons is to never rush into buying anything, especially financial products that you don’t know much about.

“In a world of social media filled with stories of overnight wealth and success, it can be tempting to spend money on things that will get you there. You may regret not spending your money. This is especially true for people who hoard money. They miss out on experiences in life and with other people because they can’t spend it.” Founder Carla Stevens frugal feminista and author “Healing your relationship with money”

“Embarrassingly, I have fallen victim to water cooler advice several times. It’s advice based on anecdotes and is more based on hearsay than on knowledge. I spent the money I earned on stock speculation and lost money many times.It can happen to anyone.If you listen to bad advice from unqualified sources, The old expression “If it sounds like it, it probably is” lives on.

“Another example of personal failure was losing a lot of money on a condominium conversion project that failed miserably. Some kind of greed seemed to creep into your normal thought process and… You’ll probably be a little lazy. It’s even worse if you know a lot and do it anyway. One thing I’ve learned is that nothing is easy or certain. If someone tells you they can make quick and easy money, even if it’s from a close family member or friend, that’s usually a red flag.” Lamar Brabham CEO and Founder noel taylor agency

“One of my biggest spending regrets is buying a timeshare. It was a hasty decision that only resulted in an annual fee and an increase in price each year. I should have understood that it might not be something I would use every year. I should have listed the pros and cons before buying something that has a contract fee or annual fee. Also, if the annual fee is You also need to determine whether there will be an annual increase, and if so, whether that increase will fit within your budget.” Dawn Marie Joseph, Founder Estate planning and preservation

“When I was a freshman at the University of Texas in the early 1990s, when I registered my credit card, credit card companies were lined up near campus and handed out school T-shirts. Three of my cards were maxed out. The funny thing is, I couldn’t even begin to say what I bought. I know my credit card debt was over $10,000. I remember putting the cards in a Ziploc bag, filling them with water, and freezing them. I thought if a real emergency ever happened, I would have to work hard to thaw those cards. The end of my college days. It took me over a year to pay off these cards for two years. The biggest lesson I learned is to use credit wisely and sparingly. I learned that there are destructive debts (such as stupid credit card spending) and destructive debt (such as stupid credit card spending).” Simary Zoe, Director of Financial Planning edelman financial engine

“My biggest regret with spending money was helping a family financially when I couldn’t afford it myself. Stand up for your loved ones when they need help. I think it’s important to be able to do this, but it shouldn’t be to your own detriment. In this situation, I would help the person pay off debts that really need to be discharged in bankruptcy. They didn’t want to file for bankruptcy, so I helped them until they understood they had to file for bankruptcy. Since becoming a financial planner, I’ve learned how these things work. I now have a deeper understanding of how things work, so I can now advise my family on how to deal with such situations. Also, I am now able to direct some of my savings to I keep it in case of family emergencies, so I have a reserve fund for just situations like this, and I advise my clients to do the same. doing.” – Samantha Gorelick, Managing Financial Planner brunch and budget

“My biggest overspending regret was loaning thousands of dollars to an ex-boyfriend, believing that he would get it back if he corrected certain ‘life circumstances’. Needless to say, I lost that money. I never saw them again, and they’re still ex. It was an expensive but useful lesson because I now only lend money that I’m okay with giving away. Start mixing money and people. And I think things can get very emotional quickly. In my case, being a single mother at the time, I felt very strongly about my ex-husband taking advantage of me and taking financial resources away from my children. I ended up feeling angry. However, it was my decision to lend the money in the first place, so the mistake is mine.” jessica medinaturned lawyer into certified financial counselor

“My biggest regret about spending money was on my first car. Instead of following my parents’ advice and buying something I could easily buy with cash, I decided I needed a newer car. One Saturday afternoon, I went to the car dealership with my certified pre-owned Toyota Camry. The interest rate was 22% and the monthly payment was $535. Add insurance for new drivers and other costs of owning a car. So I was paying $800 a month for this car, which was half my monthly income. Did I mention that I was paying for some of my college tuition and books? Why? Will I regret it? First, I live in an area of ​​New Jersey with easy access to public transportation, so I didn’t need a car at all. Second, I didn’t care about interest rates at all. Third, I was completely over the limit when it came to my monthly car expenses.” Rose Niang, Director of Financial Planning, Edelman Financial Engines

“It was always a little embarrassing to drive a 25-year-old car, even if it ran great and did its job. When I got older and had more financial means, I bought a luxury I decided to buy myself a new car. Wow, was that a mistake! I was worrying endlessly about my car. I was worried about it getting scratched or someone hitting it in the parking lot. Will it not crash or lose value? In the end, I only owned that car for a few years, and my next car was a satisfactory medium – a newer model used car. Since then. , that’s my go-to. A slightly used car that’s in good condition and will last 8-10 years. Now I’m less interested in luxury cars and have more interests for me, like travel and clothes. I want to spend my money on important things.” ― Isabel Barrow, Director of Financial Planning, Edelman Financial Engines

“I wish there was one big item I regret spending money on, but the truth is, the things I regret spending money on most over the years are: I made an impulse buy.I’m glad I gave up, but I ended up buying extra groceries without any meal planning and putting them in the closet with the tags still on (and they weren’t returnable). It ended up going in the trash. I literally cringe when I think about all this wasted money. Individually it may not seem like much, but in total it adds up to an income-producing asset. That can be a lot of money that could be spent. The biggest thing you can learn from overspending regrets is to identify your overspending triggers and plan to avoid them in the future.” Andrea WollockMoney and Budgeting Expert

Answers have been edited and condensed for clarity.