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If you thought you had an awkward year, check out the people on the list below. We've cataloged some of the most outrageous missteps and glorious gaffes of 2008. Think we forgot something? Let us know in the comments.


Ten Dumbest Money Mistakes

    Mistake #1: Being Ashamed to Invest Small Amounts
    With this attitude, you'll never save anything. What is small to one investor may be huge to another.
    Solution: Begin saving something from your next paycheck. The dollar amount is not important. Developing the habit of saving is.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    Ms L, Flickr

    Mistake #2: Having Inadequate Emergency Savings
    Without this nest egg you could wind up deeply in debt.
    Solution: Stash three to six months' worth of living expenses in a money market fund or bank CD.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    Malingering, Flickr

    Mistake #3: Leaving Cash in a Bank Savings Account
    The interest rate is far too low.
    Solution: Move it immediately to a money market fund, money market deposit account, or online bank.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    nicora, Flickr

    Mistake #4: Operating Too Many Accounts
    If you have several bank accounts, a number of mutual funds, and brokerage accounts, you're spending too much on service fees. And it's way too difficult to keep track of rates, prices, and other details.
    Solution: Consolidate. Have one checking account, two or three mutual funds, and one brokerage account.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    trp0, Flickr

    Mistake #5: Confusing Income with Appreciation
    If you don't know what an investment is for, you're likely to hold or sell the wrong thing. Do not expect growth stocks and growth mutual funds to pay high dividends or income. Do not expect CDs or bonds to rise in price.
    Solution: Read up on these.


    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    phantom kitty, Flickr

    Mistake #6: Avoiding Financial Goal Setting
    Yogi Berra said it best: "If you don't know where you're going, you're probably going to wind up someplace else." Most people devote more time planning their vacations than their financial future. Consequently, they spend as much or more on cruises, airline tickets, and hotels than they do funding their retirement accounts or building up a nest egg.
    Solution: Set just one or two specific goals. Write them down and discuss them with a stockbroker or financial adviser.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    ClintJCL, Flickr

    Mistake #7: Failing to Diversify
    It's tempting to put all your money in one place because it's convenient and easy. No investment is ever sufficiently profitable or safe to justify this lazy approach.
    Solution: Divide your assets among CDs, money market funds, stocks, bonds, Treasuries, and real estate.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    dashananda, Flickr

    Mistake #8: Procrastinating
    Most of us put off making financial decisions because we're afraid we'll do the wrong thing.
    Solution: Set time deadlines and take several small, easy investment steps, one at a time. For example, if you have $3,000 on hand in week number one, put one-third into a money market fund. The next week, buy a bank CD. The following week, use the remaining amount to buy shares of a blue chip mutual fund.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    jetalone, Flickr

    Mistake #9: Ignoring Savings Plans at Work
    Tax-deferred 401(k) or stock purchase plans are good deals, especially if your company matches your contribution. So are automatic EE Savings Bond programs.
    Solution: Talk to your benefits officer this Monday.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    Ms L, Flickr

    Mistake #10: Failing to Have a Will
    If you care about the other people in your life, keep an updated will.
    Solution: Call your lawyer this week.

    From "How to Invest $50-$100" by Nancy Dunnan, ©2007, Collins.

    sean dreilinger, Flickr