People who are terrible with money

[sunshine05]

I have a friend who is in the process of getting out of debt since her husband was unemployed for 6 months and only recently found a job. So she is planning a vacation to LA to go to a H.S. reunion and also visit family and take the kids to Disney. She lives in Portland, OR and just purchased 4 R.T. airline tickets for $800 and is wondering if she should charge the rest of the trip since she has no savings and a rental car to drive around down there will cost $600!!! WTH? I would never waste money like that. I just don't understand what some people are thinking! But I guess this is pretty typical of Americans today.

[Ponce]

Two kind of people are "terrible" with money.......those with a lot and those with none.

[Osky]

WTH? I would never waste money like that. I just don't understand what some people are thinking! But I guess this is pretty typical of Americans today.

Yes, I have been fascinated in watching this behavior. It seems that as people watch those around them fall prey to the depression (or, in your friend's case, when it actually is happening to them), they just keep doing what they've always done, keep living the way they've always lived.

It's as if they're careening down the highway and see a concrete wall straight ahead, and instead of slamming on the brakes, they punch the throttle ...

[BullionVince]

Oh boy remember my thread "OMFG People are Stupid" over at GIM. That got a lot of people stirred the fuck up.

[k-os]

I think at some point, when someone is fairly deeply in debt, they see it as something that is insurmountable, and they don't bother planning their way out of it. As long as a credit card company keeps giving them credit, they'll keep using it.

[nunaem]

Has she considered running for congress? She'd fit right in!

[TheNocturnalEgyptian]

It's as though not taking a vacation is not an option.

[Rebel Yarr]

Yeah - or how about driving!!!! Portland to LA is like 1.5 days each way - after being felt up and xrayed at LAX and PDX - it wouldn't take much longer than flying - and it is one of - if not - the most beautiful drive/scenery in the country!!!

and as of 5 minutes ago....I am 100% debt free (other than some FRN's I have stashed).....wooohooo

[1970 Silver Art]

Addressing only the symptom (symptom = credit card debt) but not addressing the causes (causes = bad spending habits and living beyond your means) will just result in the symptom coming back again and again and again.

[Jenna]

and as of 5 minutes ago....I am 100% debt free (other than some FRN's I have stashed).....wooohooo


Congratulations, isn't that an incredible feeling? :D

My friends are running around acting like chickens without heads. (Lost my job, oh well, I'll sit on unemployment. WAAH, I have no money, but excuse me while i get a manicure and massage before applying at the local Tim Hortons.)

I've learned long ago to quit trying to talk sense into others and just let them fall on their own sword. Unless, of course, they come to me for advice, which never actually happens. While I'm diligently saving upwards of 50% of my income, they're out blowing every last penny and then crying poor mouth. ???

[iOWNme]

Addressing only the symptom (symptom = credit card debt) but not addressing the causes (causes = bad spending habits and living beyond your means) will just result in the symptom coming back again and again and again.


I say its a symptom too.....

I just had this conversation with someone who was telling me that people shouldnt buy stuff they cant afford. Like houses, cars, etc. I told her i agreed, but why do they do this?

Monetary irresponsibility is a symptom of the disease. Which stems from not being taught/understanding our monetary system. It is not the disease itself. The fraudulent monetary system is the disease.

[peachesinfla]

These people deserve all this crap even if you and I have to pay for it.

[k-os]

I would say that materialism is certainly part of the disease.

[nunaem]

I would say that materialism is certainly part of the disease.

Definitely a big part. As is entitlement, irresponsibility and especially conspicuous consumption (http://en.wikipedia.org/wiki/Conspicuous_consumption).

[Cebu_4_2]

I want more credit, more cards, they just are limiting me. So what if I don't pay my 3 cancelled cards, my mortgage, taxes etc, I deserve more credit LMAO. (NOT!)

My last gas card canceled me after running a check, Amazon seems to not mind or not check. I will pay until they tell me it's over, then I will try again somewhere else.

I am not proud of this but the bankers have a double standard, once they relay that double standard on me I move on. I have never in my life cheated any person or company, I have 100% feedback on ThaBay, everyone that knows me can be character witness that I would give the shirt off my back in the middle of a snowstorm.

Perhaps I am a person gone bad? I think I have figured out the system that has worked to bankrupt millions of people, throw them and their families on the street for taxpayer profit. Why not use that knowledge to keep my own family from sitting on the curb?

Author unknown.

;-]

[1970 Silver Art]

I would say that materialism is certainly part of the disease.


Yeah I will agree with that because MSM brainwashes people to believe that having that nice car or buying that expensive piece of clothing will make you become successful in life. Keeping up with the joneses is the name of the game for the people who feel that materialism will help make them "a somebody".

In a very bad economy (like the one we are currently in now), this is what happens..............materialism + bad spending habits + losing a job + no savings = A financial facade that will eventually crumble and fall to the ground.

[sunshine05]

Yeah - or how about driving!!!! Portland to LA is like 1.5 days each way - after being felt up and xrayed at LAX and PDX - it wouldn't take much longer than flying - and it is one of - if not - the most beautiful drive/scenery in the country!!!

and as of 5 minutes ago....I am 100% debt free (other than some FRN's I have stashed).....wooohooo


Outstanding! Good for you.

[1970 Silver Art]

Yeah - or how about driving!!!! Portland to LA is like 1.5 days each way - after being felt up and xrayed at LAX and PDX - it wouldn't take much longer than flying - and it is one of - if not - the most beautiful drive/scenery in the country!!!

and as of 5 minutes ago....I am 100% debt free (other than some FRN's I have stashed).....wooohooo


Thanks for that. It is going to take me a while to become 100% debt free but I plan to become debt free in about 3 1/2 years. Once I become debt free, then I will be a very happy person.

[dysgenic]

Unfortunately in today's world, the debt IS insurmountable. It used to be that people could bail out by selling their home, now with the real estate collapse that isn't true anymore.




I think at some point, when someone is fairly deeply in debt, they see it as something that is insurmountable, and they don't bother planning their way out of it. As long as a credit card company keeps giving them credit, they'll keep using it.

[Nomen luni]

While I'm diligently saving upwards of 50% of my income, they're out blowing every last penny and then crying poor mouth. ???
Good for you. Is that avatar a picture of your living room? ;)

[General of Darkness]

I'm horrible with money, I spend the excess on silver, preps and ammo. I'm an idiot. :morph:

[Ash_Williams]

I bought a platinum coin years ago and showed a few people, 'cause I thought it was interesting and I had never seen one before (or since). They asked the price. It wasn't 1700 or whatever it is today but it was still pretty high. "You could have taken a trip for that amount of money!" "You're just loaded aren't you?" "Why would you spend that much on a coin?"

I explained I could take a trip anyway, I have money. I'd spend that much on a coin because I will sell it for more (which I did). There's no comprehension with people. Money is meant to be spent immediately.. that's why you get it, to spend it right away on something pointless that you want. Try to tell someone, I could double that money, then spend 1/2 on whatever you'd spend it on, and still have the money. That's crazy talk.

I have a relative... the guy worked for a 18 years at a 60k job until the place shut down AND they paid out 2 years severance + vacation pay. How much did he manage to save in that time, and what was left after the bonus of $130k or so severance? -$80,000. Yeah somehow he managed to spend a million bucks in that time with nothing to show for it but a mortgage on a 300k house and vacation photos of him drinking on a beach. He has 15k in payments left on a car that is barely running and would sell for $500.

Of course it's everyone else's fault. It's just too hard to make it, you see. He only spends what he needs to in order to have an ok life. And what is life without the big TV and 300 boring channels of digital cable with movies on demand? And without trips to the casino? And without a visit to cuba once a year? Not even worth living, I guess.

The sad part is that if he had just paid off his credit card debt a couple decades ago he could easily have afforded the 300 channels and the casino and the vacations. But it would have been too much for him to delay gratification for a couple years to get out of debt. So instead he's paid hundreds of thousands to the CC companies, just so he never had to take a break from his lifestyle.

The sadder part is that he won't change. He'll probably end up in a nursing home in his old age, nothing but the government left to pay his way now that he's blown it all.

[chad]

ash williams is in my head.

[steveoc]

Wow - thats bad.

But its not just limited to the USA. I have a friend here in OZ, who is as broke as a blind chicken in a pile of pig shit. (Its worth dwelling on that idiom for a bit).

For some reason the banks gave him an extra credit card with another $15k credit on it, even though he has no job.

Within a 2 weeks, he had spent the lot .. alcohol, hookers and cars .... used cars ... not just 1 or 2 .... 5 of them. Yes, you read that right - FIVE of the f*%king things, puchased off ebay without any pre-purchase inspection. The intention was to horse trade them and 'make money'.

Actually, I lie - it was 5 cars and 1 motorbike.

Anyway, its a year later now - still no job - and 4 cars remain, sitting there rusting and losing value whilst the interest bills continue to accumulate on the now maxed out credit card. In his head, they are still worth at least double what he paid ... and therefore, he has 'made about $10k profit so far'.

Its just that no buyer can be found who even remotely agrees with him.

[chad]

thanks for the laugh steve ;D

[Nomen luni]

In his head, they are still worth at least double what he paid ... and therefore, he has 'made about $10k profit so far'.

Its just that no buyer can be found who even remotely agrees with him.LOL! I have a friend a little like this... not nearly as bad, though. His latest acquisition is a piece of rock with some beryl encrusted in it. He got it at auction from a shop closure. There was a hand written price tag on it saying 1500, so he is convinced he got a steal on it at 250. Every time I visit him he spends all his time on the internet finding expensive (and far superior) examples to convince himself how much it is worth, and every time, he adds one or two hundred onto the price he is certain he will get for it.

[sirgonzo420]

Wow - thats bad.

But its not just limited to the USA. I have a friend here in OZ, who is as broke as a blind chicken in a pile of pig sh*t. (Its worth dwelling on that idiom for a bit).

For some reason the banks gave him an extra credit card with another $15k credit on it, even though he has no job.

Within a 2 weeks, he had spent the lot .. alcohol, hookers and cars .... used cars ... not just 1 or 2 .... 5 of them. Yes, you read that right - FIVE of the f*%king things, puchased off ebay without any pre-purchase inspection. The intention was to horse trade them and 'make money'.

Actually, I lie - it was 5 cars and 1 motorbike.

Anyway, its a year later now - still no job - and 4 cars remain, sitting there rusting and losing value whilst the interest bills continue to accumulate on the now maxed out credit card. In his head, they are still worth at least double what he paid ... and therefore, he has 'made about $10k profit so far'.

Its just that no buyer can be found who even remotely agrees with him.


Has he ever considered running for public office?

[tekhen]

and as of 5 minutes ago....I am 100% debt free (other than some FRN's I have stashed).....wooohooo


CONGRATS!

I don't think many see how significant this is!

[madfranks]

I have a friend who, about 2.5 years ago, maxed out his student loans for one year of college, and ended up with roughly a $15,000 "refund" after tuition, books, etc. He bought a new guitar setup (guitar, amps, effects, etc.), a Vespa scooter, went on an extravagant vacation to Las Vegas, and used the rest to pay for his girlfriend's tuition because she didn't want to take out a loan. He dropped out of college after that year, has no girlfriend anymore, sold the guitar & scooter after getting laid off from his data entry office job, and has been living on unemployment while his student loans are deferred. He's been using his generous unemployment monies to take vacations; three so far: a roadtrip across the country, a trip to Mexico and a trip to Hawaii. He's been on unemployment for a very long time, now on the gov't extensions.

I don't know if he's the stupidest person I know, or the smartest. The rate he's going he'll be living off the system his whole life enjoying every moment of it.

[1970 Silver Art]

I have a friend who, about 2.5 years ago, maxed out his student loans for one year of college, and ended up with roughly a $15,000 "refund" after tuition, books, etc. He bought a new guitar setup (guitar, amps, effects, etc.), a Vespa scooter, went on an extravagant vacation to Las Vegas, and used the rest to pay for his girlfriend's tuition because she didn't want to take out a loan. He dropped out of college after that year, has no girlfriend anymore, sold the guitar & scooter after getting laid off from his data entry office job, and has been living on unemployment while his student loans are deferred. He's been using his generous unemployment monies to take vacations; three so far: a roadtrip across the country, a trip to Mexico and a trip to Hawaii. He's been on unemployment for a very long time, now on the gov't extensions.
I don't know if he's the stupidest person I know, or the smartest. The rate he's going he'll be living off the system his whole life enjoying every moment of it.


I think that you will end up being right on this as long as the Congress whores continue to keep extending the unemployment benefits.

[sunshine05]

What gets me is it's the people who always acted responsibly and paid their own way that are getting screwed. I had student loans too and it was a pain paying those things off - but 10 years later, they were finally paid in full. We are debt free aside from the mortgage and I have a credit score over 800 and for what? To pay for everyone else's irresponsibility. So sick of it.

[1970 Silver Art]

What gets me is it's the people who always acted responsibly and paid their own way that are getting screwed. I had student loans too and it was a pain paying those things off - but 10 years later, they were finally paid in full. We are debt free aside from the mortgage and I have a credit score over 800 and for what? To pay for everyone else's irresponsibility. So sick of it.


I hope to have all of my student loans paid off within 3 years.

That is unfair that the responsible ones are getting the shaft. When the gov't bails out homeowners who have bought more house than they can afford and bail out banks that have been reckless with their lending practices, that is telling us that it is ok to be irresponsible and reckless with money because mama gov't will be there to take care of them when they financially fall flat on their face. A large moral hazard in the making IMO.