SINGAPORE: Singaporeans have taken to an online forum to candidly discuss their worst financial mistakes, either their own or those they have observed others make. The discussion started after a man posted:
“What’s the worst financial mistake you’ve made (or seen someone else make)? … read all the horror stories about buying cars they couldn’t afford, being stuck in a loop of payday loans and credit card debt, and putting it all on black and losing it all…”
Signing up for ILP (Investment-linked insurance policies)
Signing up for ILP is at the top of the list. Numerous Singaporeans on the forum revealed that they have suffered substantial financial losses due to ILP.
One user recounted, “Signed up for an ILP. Cancelled it a few years later and lost $7k. Could have gone on a nice holiday with that money!”
Similarly, another user, who has paid S$12,000 in premiums over the past five years, shared their decision to cancel their ILP, stating, “I finally decided to rip off the bandaid.”
Additional users also shared their own experiences, with losses ranging from S$6,000 to as much as S$20,000. This underscores the widespread impact of ILP-related losses among Singaporean Reddit users and possibly other citizens.
Spending on luxury items
Some users shared that their most regrettable financial mistake revolved around the urge to impress others and gain validation through extravagant spending on luxury items.
One user admitted, “Spending on luxury items just for the validation and attention. Was feeling empty back then because I just broke off from a toxic relationship and felt that i needed to show that i am doing good.”
Buying stocks at a high price
A handful of Singaporeans also admitted that they’d made the error of buying stocks at a high price. One user, in particular, shared his experience buying Alibaba shares around three years ago at $174.
He made this decision after the stock plummeted from an all-time high (ATH) of $320 just six months prior.
Unfortunately, the price of the shares continued to decline, never reaching the ATH again. Expressing his disappointment, the man remarked:
“Today Alibaba is trading at $74 💀 and I am still holding onto all those shares. The actions of the Chinese CCP have shattered all investors’ faith in the Chinese economy and stock market.
Their stock market and economy are languishing now. I don’t know if my Alibaba shares can ever break even.”
Marriage or BTO with the wrong person
Several individuals also confessed that marrying the wrong person or applying for a BTO flat with the wrong partner was perhaps their most devastating financial mistake.
This decision led to financial losses and, in some cases, betrayal as their partners cheated on them, resulting in wasted efforts and money invested in the relationship.
One user shared that she applied for a BTO flat with her partner of five years; however, they separated not long after because he cheated.
“Thankfully I only lost $2k on the downpayment cause I hadn’t started work then. He lost $17k and much more after he fell into a depressive gambling stint.”
Letting other people “trade for them”
A few regrettably fell prey to sketchy trading schemes and allowed others to trade for them. One user admitted that she got involved in a forex trading scheme called Samtradefx and lost S$8,500.
“Ever since then, I have stopped trusting my money to other people,” the user added.
Not taking the time to research about jobs and careers
In addition, a user highlighted that neglecting to research job opportunities and career paths during university, when there is still flexibility to change courses, can also be considered a financial mistake.
He wrote, “Saving 80% of a 5k income just can’t compete with saving even just 50% of a 10k income. Starting out with the right foot forward is very important; trying to improve later on is possible, but it will be harder.”
Losing money to Crypto
Three users shared their stories of losing significant money in the highly volatile cryptocurrency market.
The first user disclosed a loss of over S$250,000 years ago, while the second mentioned losing between S$20,000 to S$30,000.
The third user recounted that he invested early in Bitcoin (2017) when its value was still around $5,000.
However, his approach of frequently buying and selling resulted in a substantial financial loss over time. Had he held it until now, he could have made plenty of money, as BTC just surpassed $64,000.
Reflecting on this experience, the third user commented,“Heck I don’t even know if overall I made [money] after many sleepless nights. I should [have] just bought and hold.”