Making informed financial decisions is crucial to avoid unnecessary stress and financial hardship. Some people have even lost their lives due to the devastating consequences of poor financial choices.
A user asked the forum, “What’s the worst financial decision you’ve seen someone make?”. Let’s look at the top responses.
BUYING A PURE-BRED PUPPY
“Buying a pure-bred puppy while on a low-wage job with the end of your contract in sight. While also being a single parent in a rented apartment. Yeah, within a year, she was on food stamps.”
BOUGHT A BRAND NEW AUDI RS3
“Someone at my work bought a brand new Audi RS3! around 70-80k euros. He got 40k from his grandma because she gave it to him for ‘if’ she was about to die, a small fortune to buy a house maybe, but no. what he did was put another 30k from his own money to buy the car. The guy has no house and has no money left.”
BUYING THE WRONG WATER FILTRATION SYSTEM
“A friend of mine who is very bad with money and his girlfriend bought some sort of water filtration system from a door-to-door salesman. He has to pay something like $300/month for this filtration system. He was all stoked because it came with a free set of pots and pans.
Fast forward a year, and his girlfriend has broken up with him, moved out of the house, and he’s had to sell his home because he can’t afford to live there. The water filtration system is now sitting in a storage unit where he still pays $300/month for it because he’s on a two or 3-year contract (sorry, the details are fuzzy).
We have great water quality in my area.”
BETTING MONEY IN GAME
“A guy in my fraternity got 30k for an undisclosed reason, I’m guessing a family death or something, and he bet it all on the Yankees winning one game. They lost.”
TAKING DEBT CONSOLIDATION
“Ran up credit card debt requiring bankruptcy. Once they were able to build credit again (7 years later), they proceeded to run up a massive amount of debt again, but couldn’t go bankrupt again, so they used ‘debt consolidation.’
The debt didn’t come from sudden expenses. They just needed to buy things to feel better.”
TOOK HOME LOAN
“My coworker worked every second of overtime he could for several years. He did this to save up for a house. When he applied for the house loan, he based his mortgage payment on all of the overtime he had been working.
I tried to tell him that wasn’t a good idea, but he didn’t want to hear it. He ended up divorced a few years later because his wife got tired of him always working.”
SPENDING ON FIDGET SPINNERS
“A dude who owned a small convenience store in our town spent like $20,000 on fidget spinners. He was posting for like a year, begging people to buy them as he would lose his business, and his marriage was falling apart due to it.”
PUTTING ASSETS IN HIS GIRLFRIENDS NAME
“Put everything in his GF’s name to hide assets as he owed the IRS, the gf sold his business, cashed out his accounts, and ran.”
SPENDING ON A LIABILITY
“My supervisor took out a loan against their 401k to pay their rent because ‘their credit cards were maxed.’ Two weeks later, they bought a brand new 60k Lincoln with basically nothing down because “her daughter just had a baby, and I need a bigger car for that.”
MAXED CREDIT CARDS WITH HUNDREDS OF THOUSANDS IN CASH WITHDRAWALS
“My former sister-in-law had a thriving medical practice. She got so stressed that she joined the Scientologist and started taking their classes. She opened up five-six credit cards without telling my brother, maxed the cards out with hundreds of thousands in cash withdrawals, and gave it to that cult.”
GAMBLING
“Apply for a 5k loan, didn’t accept quick enough, so applied for another 5k loan, both got accepted and ended up gambling it all.”
JOINING MLM SCHEME
“A guy I dated for a short time had been joining an MLM scheme selling insurance. I listened to his monologue and told him I had no money. He was furious and tried to sell insurance to our waiter at the restaurant. He failed again. I’m still laughing today; he was no good guy.”
SPENDING MONEY ON CASINO
“I knew someone who got a loan for their wedding but decided to blow it all at a casino. Now they have a loan for 20k to pay off and nothing to show for it.”
EATING OUT TOO MUCH
“My roommate buys door dash almost every day. They’ll maybe cook for themselves once or twice a week, but other than that, they order food 5-6 times a week. I know how much they make, and I have no clue how they can afford that.”
TRYING TO GET PREGNANT WHEN THEIR FINANCES ARE NOT STABLE
“My brother and his wife were in massive debt, didn’t work high-paying jobs, and could no longer afford their two-bedroom apartment while trying to pay off the debt. They moved back home into our parent’s basement.
A week before they moved in, they built a computer, and a year after that, they consciously decided to get try to get pregnant (which they did) while still living in the basement and knowing they hadn’t improved their financial state whatsoever.”
LETTING GO OF THE PROPERTY FOR FORECLOSURE EVEN THOUGH IT HAD EQUITY
“Neighbors. The bread earner died. Her sister and her daughter were left with the place. They could not afford the payments. They would NOT sell.
They let it go to foreclosure even though it had about $120,000 equity in it. New owners came in did very little cosmetic work, just a little paint, and fixed the fence. They sold it and made a $200k profit in about six months.”
INVESTING IN CRYPTOCURRENCY
“Guy I knew convinced his girlfriend to invest six figures worth of Apple stock that she’d had for many, many years into cryptocurrency right before it all crashed. No, they are not together anymore.”
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