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I was watching Rachael Ray's talk show recently in which she featured a young couple who spent $2,500 on four cooking pots.

Pots, I might add, they don't even use. They bought the pots in part because they were promised a free trip to Cancun. The couple were planning to use this trip for their honeymoon. But when they called to book the vacation, their claim was denied. It seems they hadn't registered for the trip within some 30-day window.

I sat there shaking my head, thinking "stupid, stupid, stupid." Who in their right mind would even spend $625 for one pot? For that kind of money, the pot had better be so automatic that it slices, dices and cooks a meal by itself.

But before I got too smug, I began to wonder: Have I ever made a mega-money mistake?

Yes.

I once hired a financial adviser who gave me some incredibly bad advice. He persuaded me to move some money I had in an Individual Retirement Account to a mutual fund his company was pushing. The problem was the mutual fund wasn't really that much different than the one I already was in.

The cost of the switch: $1,800. That was his commission.

And to make matters worse, I watched as the old fund outperformed the new fund. Stupid, stupid, stupid.

I trusted the adviser without doing enough homework. That was a mega-money mistake.

What's yours?

Each year I have a contest to find the biggest penny pinchers. This year I'm starting another contest: "My Mega-Money Mistake." Be bold, and send me a letter or an e-mail outlining briefly what you think is your biggest financial blunder. The amount of money lost or misspent or mismanaged doesn't have to be huge.

Minding mistakes

Perhaps you refinanced your home to pay off credit card debt and then ran up the cards again. That's a mega-money mistake. Or maybe you co-signed for a car for your boyfriend. And now he's disappeared with the car, leaving you stuck with paying the loan. I'm not making this up. It has happened.

If you're brave enough and the sting is gone, tell me about some financial advice you followed that resulted in a huge money blunder. For an example of what I mean, take a look at this question from a participant in one of my online chats: "I am 48 years old and have about $73,000 in credit card debt. I have been advised to cash in my $43,000 annuity from work that I was saving for retirement and apply what's left after taxes and penalty for early withdrawal towards the credit card debt. Does that make sense?"

Lessons learned

No, it does not make sense. If this person follows the advice, it will be a mega-money mistake. Because tax-sheltered annuities are designed specifically for retirement, withdrawals made before age 59 1/2 generally are subject to a 10 percent penalty. That's on top of the regular income taxes due and a possible withdrawal charge. That $43,000 could be reduced by 40 percent or more. There is no question that $73,000 in credit card debt is a massive amount of consumer debt. But this person shouldn't compound that mammoth mistake with an even bigger one.

If you owe a lot of credit card debt, cut expenses or get another job or do both. But don't pull money out of your retirement plan.

When you send your entry, please tell me what you learned from the gaffe. The couple interviewed on Ray's show admitted that they really hadn't read the fine print when they purchased those pots. They promised not to make the same mistake again.

The lesson I learned from my mistake wasn't that I shouldn't hire a financial adviser. My mistake was that I really didn't compare the investment holdings in both mutual funds. And I didn't calculate how much more the new fund needed to return to make up for the commission I paid. Fees have a direct effect on your return.

I have since hired another financial planner and as good as she is, I check and double-check the advice she gives.

The point of this contest isn't to judge but to learn; even smart people make money mistakes. But smarter folks minimize their future financial foul-ups by avoiding past missteps. Imagine how much we all can learn from each other.

So send your entries to colorofmoney@washpost.com. Put "My Mega-Money Mistake" in the subject line. Your submission should be mailed or e-mailed by May 26. Please include your name, day and evening telephone number, and address.