Case study: Biggest three mistakes as a home maker in 2002

January 1, 2019

Introduction

It is the idea to write top three mistakes I made from Sept. 2001 to August 2002 as a home maker. I decided to study bible and learn to be a Christian, I baptized with my mom in 2001 in Palm Beach Christian church. I like to do a case study on this topic called biggest three mistakes as a home maker.

Case study

I stayed at home and invited my mom to come to Florida second time in 2001 Sept, I made so many mistakes in terms of being a good person in the community and also in my personal finance.

I made so many mistakes and it was so hard for me to learn how to make a living without income. I just made net income over $110,000 US dollar from 1999 to 2001 two jobs in three years. But I did not calculate how much my net income is. I only had less than $20,000 US dollars net asset in my checking and saving account. I burned net income with $90,000 dollars with a 3 years old Ford Explorer with $8000 debt (I paid 27 installments + $3000 down payment), a mortgage, paid off my mom's home and internal furnished ($8000 US dollars), all those cashes went away under pressure of relatives, vacation to Shanghai, long distance phone calls with arguments (60 cents/ minute international long distance), furniture, vacation to California, New York, and Smoky mountains, Miami, Orlando (4 round trips from Boca Raton to Orlando from 1999 to 2002).

Overspending problems

I still paid $2,000 US dollars to my relative after I paid off my mom's home. I paid one way airline ticket to invite my mom to visit me in 2011 second time. I like to live with my mom and try to help her recover from her first stroke in her 70s. She was 70 years old.

I did not have skills to make a living and learn how to save money. I had to push myself learn and live without income in USA.

Waste of food

For example, I bought a bag of white flour, more than 50 lbs from Costco. I tried to learn how to make bread, and then I tried to learn how to use baking soda to make a bread. After a few months, I threw away whole bag of white flour since there were some bugs growing inside.

I also have to learn how to deal with my loss of job, learn how to handle finance challenges. I decided to attend bible study in a small group.

Liabilities

I had car loan to pay every month $376.95 (47 installments, 20 left, $7539), and mortgage to pay $480/ month for a condo, and also I had to pay food and gas and car insurance etc.. Only thing I learned is that Ford manufacturer interest rate is low as 1.99%.

Careless and minor incident

I made a lot of mistakes in terms of driving my car Ford Explor 1999. I did not pay attention to what I did, one time I forgot to close gas cap, the light shows to check gas; I called my friend to ask his advice, and I tightened the gas cap.

Bible study 

I already built a bad habit to show off the wealth. This is the first time in my life that I chose to be a Christian and learned to be humble. I stayed with bible study small group and I chose to be a Christian.

Canadian immigration

I had to push myself to overcome the stigma on myself. I learned that it was hard for me to make a living now. I did not have permanent resident in USA, I started to search for my opportunities, I consulted the Canadian immigrant, I did not have enough score to immigrate to Canada, I missed two points; If I have a spouse with a university degree, I can add 3 points; Or if I have a relative in Canada, I also can have additional 3 points. I had to stay in Florida.

Biggest finance mistake 

First thing I found out today, this New year's day, the biggest financial mistake I made in Feb. 2012. I sold VIGRX mutual fund in my IRA account. Here is my blog.

I may argue to myself that if I do not learn what is growth index fund, then I will sell it as a loss in next recession around 2008 as well.

One of ideas is to purchase the growth index fund back in next recession in 2008. When I closed stock and IRA stock account in 2010, actually I should put everything in VIGRX growth index fund instead, 15 years lowest point, 15 years implies from 1994 to 2009.

Actionable Items

One thing I analyze today, new year's day after more than 17 years.