10 ways to stay broke - forever

[dud]

I actually know someone who regularly commits only four (4) of these fiscal "sins" and lives paycheck-to-paycheck on a six-figure income.

 

[darkxshade]

is that like how you lose weight or get fat?

I would say it's pretty spot on comparison to diet. Some people would argue that genetics play a role to blunt the caloric balance equation and in the case of this scenario, I call the person rich. 😛

 

[mnewsham]

I actually know someone who regularly commits only four (4) of these fiscal "sins" and lives paycheck-to-paycheck on a six-figure income.

My mother? :\🙄

 

[Via]

#10 can be a sleeper.

I used to go out to eat every week and throw it on a credit card. Granted - many served business purposes but being self-employed I still had to pay for it, deductions or not.

I still remember clearly that last irresponsible meal: I came home tired on a Monday or Tuesday and decided to out out of sheer laziness. So we went to The Olive Garden, had big meals, a bottle of wine, and desert; the quality was really subpar and I didn't enjoy it.

After the bill came I looked at the total (almost $90 not including tip iirc) and thought to myself "are you crazy? You could have went to any grocery store and bought great filet mignon and a nice bottle of wine for a fourth of what this is costing you. Stop being a lazy asshole".

I still go out to eat (and enjoy it), but now I have a strict budget and cash-only rule. I roughly estimate I used to spend almost $5000 a year on going out (probably more some years), and now it's less than half of that. Maybe a third of that sometimes.

And that's not even factoring in all of the CC interest. I'm 1 1/2 years into a 5 year second mortage that's paying off all of my CC debt. A lot of that was careless eating out over a long period of time.

And to another point - Yes, the used car market is completely ridiculous right now. It's impossible to find anything decent under 100,000 miles. This "re-pricing" that happend is completely absurd. I hope a correction happens soon.

 

[GotIssues]

This list is a lot like a "How to be fat" list that just spouts off a bunch of food you shouldn't eat. The truth of the matter is, all of it is fine in moderation (except the items like "spend it all" and "pay the minimum" which can't be done in moderation). Nothing wrong with financing, having a big house, taking a vacation, etc. if you do it responsibly.

TBH, I think a lot of people are broke because they can't discern properly between what they "want" and what they "need" and spend on wants like they need them. You need a car, you don't need a car that costs $40k.

 

[ichy]

Restaurant & bar costs can really add up. Thankfully I have a decent job and can afford to indulge sometimes, but I also try to be good about cooking for myself most of the time. Bringing my own lunch to work is a great cash saver.

 

[mvbighead]

I can't say I disagree with it, but some of it seems pretty much pinching pennies to the furthest extent possible.

I would think more appropriate advice, rather than to follow all 10 points, is to pick 2-3 or more of the above that you find more important to your own sanity, and keep doing them. Just make sure you are doing them within your means, and not beyond your means.

I dunno, calling all of the above mistakes just seems foolish.

To me, you could get hit by a bus and die tomorrow, you simply don't know. That doesn't mean you should go out and spend it all. It does mean that you should enjoy life now, and don't put all your earnings away simply to not spend money. Really, what's the point of making money if you can't spend it? Just be smart about it, and don't spend more than you can afford. (Ideally, you'd have savings to be used for big purchases.)

 

[ichy]

Car payments are another fantastic way to stay on the perpetual debt treadmill. I'm not anti-new car with current used car prices, but I have to laugh at idiot guys with mediocre jobs who finance BMWs & Acuras. Idiots.

 

[IndyColtsFan]

nothing wrong with 6, 7, and 8 if you can pay cash for it all while still doing a decent job saving.

This.

Vacations are important to the wife and I. As I've gotten older, I've realized that experiences are more important than possessions, so we try to take a vacation every year. We don't go into debt for vacations, either, which is also something that is important to us. Our rule is that all credit cards are paid off every month and if you want to buy something that you can't pay off at the end of the month, you need to save more. Simple and effective.

 

[ichy]

I've taken three trips in the last year. As all the other sensible people have pointed out it's all about balance & moderation though. I drive a banged up old car & have a roommate to help with the mortgage so I can afford to spend money on my enjoyment priorities.

 

[TheSlamma]

This.

Vacations are important to the wife and I. As I've gotten older, I've realized that experiences are more important than possessions, so we try to take a vacation every year. We don't go into debt for vacations, either, which is also something that is important to us. Our rule is that all credit cards are paid off every month and if you want to buy something that you can't pay off at the end of the month, you need to save more. Simple and effective.

I think their aim is at the people who put them right on their credit cards. My best friend and his wife do that, my wife and I have a separate savings account called the "vacation fund", our rule is no money for the trip can come from any other source but that.

 

[Baked]

If a woman causes you to go broke, you're hanging out w/ the wrong woman.

 

[skyking]

If a woman causes you to go broke, you're hanging out w/ the wrong woman.

Preach it brother! A good woman can support you and one of your friends.

 

[HumblePie]

Preach it brother! A good woman can support you and one of your friends.

If you go for the rich cougars while you are still young and good looking. But then again you aren't spending HER money. You are spending her husbands or ex-husband(s) money.

 

[Red Squirrel]

I'm guilty of #7. Not so much ATVs and toys like that, but computer/electronic stuff. I have to stop it! That and house projects. I tend to overdo things.

 

[AstroManLuca]

End of the year is the best time to buy, when they are trying to push out the old models.

Also go at the end of the month and see if you can find a salesperson desperate to squeeze in one more sale before the month is over.

 

[SlitheryDee]

I'm guilty of not worrying about saving dollars here and there. I buy gas wherever I happen to be when I realize I need gas. I pay more for stuff when it allows me to have it more quickly. I don't bother with coupons or comparison shopping for the most part. Beyond a certain point, penny pinching eats into your free time to the extent that you spend all your time either working to earn money or working to keep it. I find that the working to keep it part often has a much smaller return rate than the working to earn it part. In other words, why work yourself to death to save a dollar when you could simply spend it and earn 3 dollars to replace it with.

 

[IronWing]

1. Get seriously ill. All your good planning, saving, frugality, and insurance will avail you not.

 

[mooncancook]

Except for 1 to 3, the rest is fine as long as you budget it. Just don't spend more than you can make. Saving too much money in the bank is not good for the economy.

 

[ShawnD1]

1) Finance everything
2) Pay the minimum — on everything
3) Spend it all
4) Buy a huge house
5) Buy a new car
6) Take a vacation
7) Buy more toys
8) Pay more when you can
9) Shop every day
10) Eat out

It looks like this list was written by a woman. If it were written by a man it would be called "1 way to stay broke forever" and #1 would be "suck at math"

All 10 of them are the result of being bad at math. And being a retard. And possibly being bipolar (I must buy right now!!!!!).

 

[AyashiKaibutsu]

Fail.

Number 1: Woman


/thread

This. Having an extra person or more (kids) doing 1-10 in the list is way worse than doing a couple of those yourself.

 

[TakeNoPrisoners]

A lot of these are normal things rich people do, just without the financing. Financing is bad.

 

[ShawnD1]

Nothing wrong with 5 either considering the used car market is asinine right now.

What's interesting about used cars from a dealership is that slightly used cars can actually cost more than new cars if you factor in the interest rate. If you get a new car, you can get interest rates around 0.9 or 2.9 or something like that. With a car that is 2 years old (off lease) they knock a few grand off the price but the interest rate is up around 7%. If you don't pay it off quickly, the cost of borrowing adds a couple thousand to the price!

 

[disappoint]

and for maximum effect, become a politician and employee these same practices with everyone's money

Politician and what? Don't be silly politicians don't actually DO anything. They just eat up resources.

 

[Fritzo]

I do 6 out of 10 🙁