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

[gamecock43]

I dont really understand it either...basically they feel that it will be 10 yrs before they will break even on their purchase...and that if they choose to walk away they can still live in the house for nearly a year making no payments then they can rent a house in the neighborhood for less money than their current mortgage...and they can also buy a house for less than they bought their current house...they think they can ride the equity train on its way back up. So they see it as a way to save a lot of money over the next few years. Beyond that- I dont think they have thought about it- because its all the long term consequences that will lose them a lot of money. once again- looking at the short term, not worrying about the long term.

[boosami]

Here are a couple little ones. Rather than "financial irresponsibility," I'd lean towards calling these examples more like "financial illiteracy."

A friend claims paying for premium gas is making him go broke. He wants to sell and finance a new car that takes regular unleaded so he can pocket the savings. The kicker? His car payment will go up at least $150/mo with the new car. Premium costs what, ~$3.00 a tank more than unleaded?

Another friend bought a nice skirt and boots at the store, but admitted she felt guilty for spending the $150 or whatever. We were at another store and she grabbed a bottle of vitamins on sale for $7, but when the cashier rung it up the sale did not apply and they were regular price, $14. She almost physically cried about spending the "extra money," and returned the pills.

An associate wants to travel to get away because the stress of managing his struggling financials is causing him to pull his hair out. Where is the money for the plane ticket, hotel room, food and entertainment coming from, I wonder?

[disneysteve]

boosami, your post reminded me of all the people that post over on the Disney board that they have a trip scheduled and now don't have the money but refuse to cancel because they'll lose their deposit. You just can't explain to them that it is better to lose a $300 deposit than to take the trip that will cost an additional $2,000 that they can't afford and will have to charge to their CC and take who knows how long to pay off with double-digit interest.

[boosami]

You just can't explain to them that it is better to lose a $300 deposit than to take the trip that will cost an additional $2,000 that they can't afford...

It's just amazing how many people will ignore simple math and logic when money is involved.

It really annoys me when people who don't have the money decide they want to get or do something they "really deserve." In my opinion, you don't "deserve" it unless you are prepared to pay for it! "That's easy for you to say," they tell me, "You have money and I don't." But I worked very hard to put myself in the position I am in. I worked as soon as I could get a permit at 14 years of age, despite my parents being well off. I put in 40+ hours a week while in full-time college. I put in extra effort to move up from that college-graduate-level job. I didn't have any special chances or a trust fund or magical help, I just buckled down and did it. Too often the person complaining doesn't want to put in any extra effort because they think they're automatically more special or deserving than the next guy.

My associate who "really needs and deserves" a vacation in fact does not. He won't "deserve" it until he has prepared for it by saving the money, and what he "needs" is to eliminate the stress by working out his finances--not temporarily running away from them while making them worse.

[maat55]

It's just amazing how many people will ignore simple math and logic when money is involved.

It really annoys me when people who don't have the money decide they want to get or do something they "really deserve." In my opinion, you don't "deserve" it unless you are prepared to pay for it! "That's easy for you to say," they tell me, "You have money and I don't." But I worked very hard to put myself in the position I am in. I worked as soon as I could get a permit at 14 years of age, despite my parents being well off. I put in 40+ hours a week while in full-time college. I put in extra effort to move up from that college-graduate-level job. I didn't have any special chances or a trust fund or magical help, I just buckled down and did it. Too often the person complaining doesn't want to put in any extra effort because they think they're automatically more special or deserving than the next guy.

My associate who "really needs and deserves" a vacation in fact does not. He won't "deserve" it until he has prepared for it by saving the money, and what he "needs" is to eliminate the stress by working out his finances--not temporarily running away from them while making them worse.

Amen!!!!

[disneysteve]

My associate who "really needs and deserves" a vacation in fact does not. He won't "deserve" it until he has prepared for it by saving the money

I happened to be a big fan of vacation, and by vacation, I mean time away from work. I usually take one week off each year and stay home. I putter around the house, do some repairs that have been neglected, catch up on some business stuff that I don't have time for when I'm working, sleep late, cook a nice dinner each night, etc. It doesn't cost much of anything but gives me time to unwind and recharge my batteries. I think everyone should have a break from work periodically.

[Goldy1]

I am sure at least in small ways we are all guilty of buying stuff we don't need.
My mom had a lump in her breast she had to have multiple mamograms, scans and a biopsy for. Yesterday she found out it was "nothing" and no cancer. I had to listen to her complain about how her copay/deductable was about $169 for a few of the visits and how perturbed she is she has to PAY FOR THAT acting like docs were scamming her running all this tests just to "milk her insurance" and she shouldn't have to pay ANYTHING out of pocket. My dad retired with only 21 yeras into gm on the line at age 48. They have a pension and traditional BC healthcare for LIFE for his 21 years much of which was laid off and she pays not a dime for it. I love her dearly but she should get into reality.
Oh yeah and she smokes a pack a day too. Nice.

[Goldy1]

Oh my dad just bought my mom a $40 pen and he wanted to buy her a $200 pen. The $40 pen is a piece of plastic crap that doesn't even write well.

[disneysteve]

My mom had a lump in her breast she had to have multiple mamograms, scans and a biopsy for. Yesterday she found out it was "nothing" and no cancer. I had to listen to her complain about how her copay/deductable was about $169 for a few of the visits and how perturbed she is she has to PAY FOR THAT acting like docs were scamming her running all this tests just to "milk her insurance" and she shouldn't have to pay ANYTHING out of pocket.

I'm glad your mom is okay.

Being in the medical field, I have run into that mentality many times. Patients who feel they shouldn't have to pay anything if their tests turn out okay since no treatment is needed or given. Makes no sense at all. Would they rather have a positive biopsy?

[Investing First Steps]

I guess they thought they were paying for cancer, not tests.

[GREENBACK]

I happened to be a big fan of vacation, and by vacation, I mean time away from work. I usually take one week off each year and stay home. I putter around the house, do some repairs that have been neglected, catch up on some business stuff that I don't have time for when I'm working, sleep late, cook a nice dinner each night, etc. It doesn't cost much of anything but gives me time to unwind and recharge my batteries. I think everyone should have a break from work periodically.

Steve,
I intend to take this attitude more from now on. In the past, most of my vacation time has been used on some kind of trip or something harder than the work that I get paid for...lol. I think it's time to relax some.

[Goldy1]

speaking of vacations

I enjoy travel. I think it is great to see new places. However, I enjoy doing things close to home and getting things done at home also. I tend to find more things to do than the average person it seems. I go see a play, dine out, home improvements etc. Oh and clean BAsically I don't have to get on a plane every week off.