Top 5 Ways I Make Poor Choices With Money

I try to do most things the right way, or at least what I think is the right way, but due to some combination of laziness, inexperience, or overconfidence, I often manage to goof things up.

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But even with money, I have made and continue to make choices that many would consider suboptimal. These are my top five money mistakes.

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Top 5 Ways I Make Poor Choices With Money

In spite of the math, I can’t say I regret these decisions. While I did miss out on some gains, real estate accounts less than 15% of our net worth, so it wasn’t a make or break deal.

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There is one smart play that I am making with the HSA. I never put any expense directly on the debit card that came with the account.

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I always charge our expenses to a credit card with excellent travel or cash back rewards. I then reimburse myself from the HSA; this nets me 1.5% to 2% or more, besting that smaller tax drag, and is totally worth the hassle.

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3. We have a second home.

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If you are planning to take the standard deduction, you might as well not have almost $24,800 in deductions (or $12,400 for single filers in 2020.

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This is where the bunching of deductions can make sense, which is essentially what we do with our DAF.

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Top 5 Ways I Make Poor Choices With Money

I try to do most things the right way, or at least what I think is the right way, but due to some combination of laziness, inexperience, or overconfidence, I often manage to goof things up.

But even with money, I have made and continue to make choices that many would consider suboptimal. These are my top five money mistakes.

Top 5 Ways I Make Poor Choices With Money

In spite of the math, I can’t say I regret these decisions. While I did miss out on some gains, real estate accounts less than 15% of our net worth, so it wasn’t a make or break deal.

1. I carry no mortgage.

There is one smart play that I am making with the HSA. I never put any expense directly on the debit card that came with the account.

2. I spend from our Health Savings Account (HSA)

I always charge our expenses to a credit card with excellent travel or cash back rewards. I then reimburse myself from the HSA; this nets me 1.5% to 2% or more, besting that smaller tax drag, and is totally worth the hassle.

3. We have a second home.

If you are planning to take the standard deduction, you might as well not have almost $24,800 in deductions (or $12,400 for single filers in 2020.

4. We don’t always itemize deductions.

This is where the bunching of deductions can make sense, which is essentially what we do with our DAF.

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