Buying a banger, breaking a bank …as other REALLY BAD money mistakes

We often ask our guests about their worst money mistakes and their answers can teach us a lot about finance… and life generally. For tennis ace Pat Cash it was taking a friend’s advice, while actor Rex Ryan’s holiday in Russia was memorable for all the wrong reasons. Here are some other choice answers – and tough lessons learned:

Mistake No.1: Visiting Russia

Actor Rex Ryan – son of late radio and TV star Gerry – had some dubious financial experiences on a trip to Russia (before its invasion of Ukraine).

‘A man made me buy a crab meal for €100 in a restaurant. It was horrible,’ he said. ‘A taxi driver showed me a gun and then said he thought the tip should be bigger… he was right.’

No.2: Not getting professional financial advice

Rugby star Devin Toner joined the team at PAX Financial Services after retiring to help people learn ‘about pensions, savings and investments’. He lists some mistakes to watch out for:

■ Believing only wealthy people need advice – if you earn an income, you need advice.

■ People not protecting their income. Everyone insures their home, car, pets, gadgets but not their biggest asset – their income.

■ Saving money long term in the bank (at low interest rates – as opposed to investing it).

No.3: Going rogue

There is no doubt about the worst move by ex-financial trader Nick Leeson, who now lives in Galway with his Irish wife. ‘As money mistakes go, I don’t think anything can rival my answer. Between 1992 and 1995, I ran up £862m of losses from unauthorised trading for Barings Bank – which in today’s money is the equivalent of £1.7bn. It caused the collapse of the bank.’

He went to prison and had his future earnings ‘garnished’ to repay the losses. Leeson now earns more than €5,000 for giving talks about Barings, its impact on him and risk culture.

No.4: Taking a friend’s investment advice

Tennis star Pat Cash, above, who has Irish roots, won a few hundred grand for winning Wimbledon – and lost it all thanks to a friend.

‘My friend created these phenomenal designs for high-speed boats that are put on the back of superyachts. But the company never managed to actually make any and I lost £200,000,’ he said.

No.5: Buying cars

Cars pop up regularly as the answer when we ask people about their worst financial decisions – unless you’re The Stig racing driver of Top Gear fame (Ben Collins) who can tell a bargain from a banger and invests in cars rather than a pension. Unfortunately Paul Walsh, CEO of Peopl Insurance is not The Stig. ‘My second car, a Vauxhall Kadett, was the purchase that just kept on taking,’ he said ruefully when listing his worst investment.

No.6: Marrying three times

Composer Howard Blake made great music for The Snowman (which includes the song Walking Through The Air). Unfortunately, his three big money mistakes were his three somewhat less harmonious marriages. ‘All of them cleaned me out,’ he said.