how many financially irresponcible people are out there in the world?

[disneysteve]

Someone I work with is hooked on craigslist. To her credit, she both buys and sells, but I think she buys more. She's always telling us what great bargains she's gotten, and they are, in fact, good deals. But I happen to know that she also has a few thousand in CC debt. Now, if she was using craigslist to buy things she truly needed at a greatly reduced cost, I'd admire that, but she's not. She's buying all wants - decorating and home furnishing items. She's currently selling her basement sofa because they just redid the room and got all new furniture (probably adding to the CC debt).

As we alway say, it isn't a bargain if you don't need it or can't afford it.

[Ima saver]

Real estate was booming around here a few years ago. Everyone wanted to move to the mountains. So, everyone started building subdivisions and everyone else became a builder. Our grading guy became a builder. The guy that put in our septic tank became a builder. All the realtors became builders. Of course, none of them can even use a hammer.
So we have all these not well built spec houses sitting for sale around our county and the new "builders" cannot make the payments on them,

I agree with Disneysteve, it really is not a bargain if you don't really need it.

[mommyof4]

Up until a few years ago, I did every stupid thing you can think of with my money. Thanks to the likes of Dave Ramsey, Suze Orman, and a few other authors/financial advisors, I am now a reformed spend-aholic, and I am one of the most fiscally responsible, frugal, budget-loving persons that I know.
However, I will be working for years to pay off the debt that I accumulate during my ignorant years.

[disneysteve]

I have relatives who have zilch. They have been through bankruptcy once, have no savings to speak of and live paycheck to paycheck. Twice in the past 2 years, they have vacationed at a nice all inclusive resort in the Caribbean. The last time we got together, we were talking about it and they said, "As soon as we pay off that trip, we're going again." So not only are they taking trips that they can't afford, they charge them and take a year to pay them off, meaning they probably pay 20% more than the actual cost due to interest.

[EEinNJ]

The visitors to this forum inherently have a different view than the people described in this thread. I would add, the entire mess on Wall Street and the banking industry was caused by irresponsibility and mismanagement of risk. So maybe the answer to "How Many?" is "Most All". Greed, and wanting "stuff" as a way to feel good/enjoy life is the root of it. What many of us here might call irresponsible, those with a different view might call "risk taking", "enjoying life", not "being Stingy", or maybe "just getting by"

[mommyof4]

The visitors to this forum inherently have a different view than the people described in this thread. I would add, the entire mess on Wall Street and the banking industry was caused by irresponsibility and mismanagement of risk. So maybe the answer to "How Many?" is "Most All". Greed, and wanting "stuff" as a way to feel good/enjoy life is the root of it. What many of us here might call irresponsible, those with a different view might call "risk taking", "enjoying life", not "being Stingy", or maybe "just getting by"

Good point. But I have to say that I've been on the other side of things financially, and I'm here to say that it STINKS. I am so much happier now that I'm in (better) control of my money, my spending, and my life now when I'm living frugally than I was before.

[Joan.of.the.Arch]

My friend told me that a nurse she works with described her decision about a possible purchase in a Coach store (purses & bags). Supposedly she was just saying to herself, "Purse or mortgage?...Purse or mortgage?" She was explaining how she happened to come to work with yet another Coach purse. My friend says the nurse has quite a few of these purses and that she laughs about her husband's objections to her spending. I wonder whether the husband is covering all the essentials or if their needs really require her contribution as well.

[maat55]

There are 100 in the senate and 400+ in the house. Oh, and at least 1 in the white house.

[cptacek]

lol, maat!

When my grandpa died, he and my grandma were worth $7million. 20 years later, as of last December, she had spent $6million of it. I don't know what this last drop has done to her...

[Cassandra]

I do wonder about the people who have rapidly gone through inheritances/money left from the loved ones who died. Maybe part of why they spent the money so fast was their way of (not) dealing with their loss? I know after my mom died I went on a mini-spending spree. Fortunately my dad saw what I was doing and made me return all of the items I bought.

We have a family friend who does not have a good grasp on reality. She is addicted to pain meds (ironically, her husband is a drug counselor) and is on disability. When bills come she usually stashes them in the back of her desk because "if I pay the bill now, there won't be any money in the account to buy clothes, movies, etc.". Even worse is her daughter.

The daughter is graduating this spring from college with about $130,000 in student loans. She plans on taking a year off and living in Paris and then going onto law school, which she will also need loans for. I wouldn't be surprised if she starts her career with over $200,000 in debt. She also refuses to save any money from she earns. She spends each paycheck and all of each paycheck.

[cptacek]

My grandpa handled ALL the money decisions, investment decisions, etc. He was very, very good at it. I wish I had had the chance to talk to him about things like this, but he died when I was a 2nd grader. Anyway, grandma didn't know how to handle any of the decisions, but she thought "I'm an independent woman now...I don't need help from anyone." And the only people who did "help" her scammed her, and she didn't even know it! She wouldn't listen to her children or their spouses, and we couldn't do anything about it.

[SnoopyCool]

Hmm... that's interesting about people blowing through inheritence money. My cousin did the same thing - about $10,000 in a few months, from her dad.

[disneysteve]

Oprah did a show last year about people who received windfalls and what happened. Lots of stories about people blowing through them, getting scammed, getting hit up by friends and relatives to give them money, etc. As much as we all play the "what would you do with $1 million" fantasy, the reality of it is usually much different.

Keep in mind that most of these windfalls go to people who aren't financially savvy. That's why they're playing the lottery in the first place.

[gamecock43]

I know someone who inherited 10k from a great Aunt that they were close to and the same year decided to quit their job to look for something else. No backup job lined up- they figured they would use some inheritance if they needed it. 5 months later- still no job and inheritance all gone.

A neighbor told me the other day she and her family are considering walking away from their new construction house that they have lived in for 1.5 yrs because it has lost about half its value and "it will take about 10 yrs to get that value back." Never mind they are able to make mortgage payments and they were originally planning to stay in the house at least 10 yrs so their sons could be raised in the house. But they really feel the smartest thing is to walk away and buy a similar sized place for less money than they bought their place for. In the long run they think they will come out ahead that way.

[SnoopyCool]

A neighbor told me the other day she and her family are considering walking away from their new construction house that they have lived in for 1.5 yrs because it has lost about half its value and "it will take about 10 yrs to get that value back." Never mind they are able to make mortgage payments and they were originally planning to stay in the house at least 10 yrs so their sons could be raised in the house. But they really feel the smartest thing is to walk away and buy a similar sized place for less money than they bought their place for. In the long run they think they will come out ahead that way.

What?!? I cannot make a lick of sense out of that reasoning.