who's the most frivolous spender you know?

[Gailete]

That guy was me, about 6 years ago

So sorry to hear this. Thank you for sharing. I trust you are happier at this point in time.

[Gailete]

Does it bother anyone else that people so irresponsible can simply file for bankruptcy, and most or sometimes all of their problems go away? It doesn't seem fair to people or banks or stores who lend them the money

Yes! That is what aggravated me most about my co-worker. While she spent the summer after declaring bankruptcy wearing new clothes, I who had been frugal was wearing my same shabby stuff as I couldn't afford to buy clothes at that point in time (I still wear some of that same stuff!). In the years leading up to her bankruptcy she never, ever put the brakes on her spending whatsoever. Really, unless you might be taking and putting your car up for sale, who NEEDS to get their car detailed. If you can't afford to pay cash for that, then clean it yourself. But everything had to be the 'best'. After the bankruptcy, her sister loaned her a credit card as our job required travel and overnight hotel stays which you pretty much need a card for. In no time she had her sister's card maxed out.

She always looked for the 'easy' way out, including gastric bypass since she 'couldn't' stick to a diet.

[EEinNJ]

My ex-wife. Repeat, EX wife.

[LivingAlmostLarge]

My mom, but she does better with preset savings then spends the rest.

[dawnwes]

Oh man. I am so sorry you experienced this deep loss.

Dawn

I knew a guy who had no real debt, and a good income. Then, he lost someone very close to him two months after she was diagnosed with cancer; both of them were completely blind-sided by the diagnosis and her death. Coincidentally, the same month she passed away, he got an increase on his credit card limit to allow about an additional $20,000.00 in spending; a second card was raised about $8K. He went on a "retail therapy binge." Within a year, he had run up his credit cards to over $50K in debt, plus owed an additional $25K to Amex. Other than some camera equipment, he had nothing to show for his spending. He did, though have two additional cards, and a few store cards in his wallet. As has been said in the past, "He spent thousands on wine, women, and song. He just wasted the rest of it."

He had problems with his fuel pump, so he parked his car and he went to a dealer and bought a $35K car with zero down payment. He then made about $25K improvements on his house over a two month period, paying others to do most of the work, although he was more than capable himself of doing 90% of the work.

He was in a severe depression, no doubt. When all was said and done, he owed about $155K in unsecured debt (car is included, but it was way upside-down). Except for the Amex, which he could have and should have paid (and eventually did pay after Amex sent his account to collections), he wasn't behind on any of his bills, but he had nothing left over to spend. His spending binge went on for about 2 years or so.

That guy was me, about 6 years ago.

[NuggetBrain]

*sigh* Unfortunately my mom. She's 62, has about $100k in her 401k (that's a generous estimate) and she took out about $60k to put a downpayment on a new townhome and pay off her credit card bills. Which she has now racked back up. She also said she "needs" a new camera (she's gotten into photography lately) and "needs" a Mac for her pictures. Even though she already has a desktop and a laptop.

Meanwhile, she's driving a car that my grandma bought for her. It terrifies me because I know that we're going to end up being responsible for her care when she hits 70 and is now out of 401k money but still needs to pay her mortgage (she just bought the townhome last year with a 30 year mortgage).

[Goldy1]

Frankly and honestly the worst money managers I know are people with union jobs and pensions. They have job secuirty and a guaranteed checks for life not to mention health insurance for life so they bleedmoney bc that check will always roll in. Not sayin they are all like that, but my husbands dad died penniless after being retired from the big 3 for decades. Unreal. His brother works on the line for big 3. his vacations run in the 10 grand range at times, and he travels about 10 times a year and has a buying addiction. His house is filled with crap. They can't have kids so they don't have to worry about supporting any like I do.

[Blessed]

Frankly and honestly the worst money managers I know are people with union jobs and pensions. They have job secuirty and a guaranteed checks for life not to mention health insurance for life so they bleedmoney bc that check will always roll in. Not sayin they are all like that, but my husbands dad died penniless after being retired from the big 3 for decades. Unreal. His brother works on the line for big 3. his vacations run in the 10 grand range at times, and he travels about 10 times a year and has a buying addiction. His house is filled with crap. They can't have kids so they don't have to worry about supporting any like I do.

Having been raised by a union member and having a spouse as a union member plus lots of other family union( all private unions) I can say I do not see that to be the normal with union members at all. Though don't get me wrong I know some! We personally don't live like the pension and healthy care will be there in the future. We hope so but do our financial planning without it. May I ask what the big 3 are? I believe I know but am unsure.

[Wino]

Oh man. I am so sorry you experienced this deep loss.

Dawn

No worries, Dawn. I was just telling the side of the "frivolous spenders" that others were belittling. I'm not saying everyone who spends like I did was depressed or pitiable (I was the former, but not the latter). It's just that sometimes, the spending isn't the problem. It's the symptom.

But the spending becomes a problem if it isn't stopped. I was just lucky enough to stop before the bills were insurmountable. It's all good now.

I sure do like those new DSLR's though....

[laurend1985]

A lot of my cousins are very frivolous with their money. Years ago I wanted to start a family investment club, no one showed up except my immediate family members. Those same cousins were at the boat gambling their money away.
My sister spends a lot of money and make a lot too. She just recently is trying to save and spend less.

[Ramose]

I have a friend from high school who makes the worst financial decisions. She got a full time receptionist job when she was around 19 and had nothing in her savings account. Although her parents were happy for her to stay at home while she built her savings she almost immediately moved out of home when she got the job to start renting with her boyfriend (he currently works as an apprentice). Then they both got loans to purchase two brand new cars. Recently when I was talking to her she complained that she has no money and doesn't know where it all goes. She still has no savings and has accumulated debt on depreciating assets!

[elessar78]

This kid I went to high school with. He's 33 and declared for bankruptcy 3 times! Always has to have the latest stuff and the very tip top of whatever line it is. iPhones, laptops, cameras, bicycles, shoes, cars. I partially blame his status-seeking parents for this behavior. But it's mostly on him now too. What an idiot.

[sagremus]

Me, I paid over $100k for a bachelor's degree. I didn't listen to anyone when I was younger about going to such an expensive school. I am very fortunate that I have an excellent job at the moment, but I am also saddled with 70k of student loans.

Please DO NOT get student loans if you can help it!!!

[bethasaver]

My mother in law. She's almost 60, lives in the basement of the home of her elderly father and has no assets (other than some expensive furniture in storage which she refuses to sell), no retirement. Just a large car loan (upside down on it) and credit card debt. She buys gifts for people frequently, not even for any occasion sometimes and charges it to her card and pays high interest on it as well. She works part time for a little more than minimum wage. At least she works.

I told my husband, we are not supporting her when she can't work anymore. She's chosen to spend (literally) her life completely recklessly financially speaking and has never worked very hard her entire life. At about that time, we'll be putting kids through college anyway.

[elessar78]

My dad is the same way. Not saying this is a holier than thou moment but my sister and I choose to support him with a small, monthly stipend. We just feel pity for him. Yes, a lot of it is self-imposed but can't help but feel sorry for the guy.