Typical Signs of Poor Financial Choices
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In today’s inflated world, financial stability and smart money management have become more critical than ever. Making smart decisions financially is crucial for building a secure future and achieving planned goals.
However, there are certain common signs that will show someone’s likelihood of making poor financial choices. Being aware of these signs can help you gain insights into the factors that add to financial instability and can help you learn to make better decisions.
In this article, we will explore one particular question that sheds light on common mistakes people make when it comes to their finances: What common thing screams, “I make poor financial choices”?
Impulsive Spending Habits
To start, a Redditor said, “Expensive clothes complaining about a lack of money.”
A second Redditor added, “I dated a guy who always impulsively spent his paycheck. If rent came a day or two after payday, it got paid. If it came a day or two before payday, it didn’t. It didn’t occur to him that he had to budget his check to meet expenses.”
Accumulating Credit Card Debt
A user added, “I still think back to those days when credit card companies had booths at colleges that gave out free t-shirts to those who applied for new credit cards. We didn’t even know what APR meant.”
A second user replied, “Having a significant amount of credit card debt.”
Neglecting Savings Or Emergency Funds
One Redditor wrote, “When “saving for retirement” means dumping huge sums into the lottery.”
Living Beyond One’s Means
A popular comment said, “Spending way too much on dating. Every time my girlfriend and I would do something together, I would end up spending at least $200.”
Another was, “Buying a huge house that’s almost empty inside because you can’t afford furniture for it. I’ve heard this is pretty common in McMansion communities.”
Ignoring Budgeting and Tracking Expenses
A user commented, “Get into debt to pay for a wedding.”
A second user replied, “Having a good salary, yet still having no money at the end of the month, every month.”
Overspending On Unnecessary Luxury Items
One Redditor replied, “My cousin, who has declared bankruptcy multiple times, always seems to have a new car.”
Another Redditor said, “Wearing designer wear but struggle to purchase anything else.”
Failing to Prioritize Financial Goals
A user commented, “Weekly overdraft notices from the bank, along with a stack of boxes from Amazon orders.”
A second user added, “Not saving some part of your salary when you can.”
Frequent and Unnecessary Subscription Services
One most-liked comment was, “Sticking with something like cable that costs $250 a month when you don’t use all the things you’re paying for and could easily reduce your costs.”
Relying Heavily on Payday Loans or High-Interest Loans
One user wrote, “Spending student loans on anything other than tuition and basic living expenses. Taking out all the loans offered. (Edit: taking out all the loans offered if it’s more than you need).”
Gambling or Frequenting Casinos
A Redditor replied, “Frequent gambling. More specifically, the people that always have an excuse to keep gambling.”
A second Redditor said, “Regularly buying scratch-off tickets.”
Making Emotional Purchases to Seek Temporary Happiness
A popular comment was, “Getting into a new hobby, and by week 2, you have all the latest and greatest professional-grade gear.”
Poor Investment Choices
One Redditor replied, “Participating in an MLM scheme.”
Lack of Financial Literacy and Understanding
One Redditor replied, “We’ve been dating for 3 months. Of course, let’s join bank accounts.”
Impulsive and Frequent Dining Out or Eating at Expensive Restaurants
A user added, “People who eat out for every meal. I had a coworker who did this but then complained about never having any money. She’d eat out for breakfast and lunch and go down to the Walgreens for a midday snack.”
A second user wrote, “Always going out to eat. literally drains your wallet.”
Financing Depreciating Assets
A popular comment was, “Buying a 2nd car (convertible Corvette) after getting laid off during the pandemic. Shoutout to my neighbor.”
Constantly Upgrading to the Latest Technology or Gadgets
A Redditor wrote, “Upgrading to the next phone on release. I know that most people who can afford this are set, but it just seems so frivolous to me.”
A second Redditor added, “Buying the latest everything. I have a coworker who struggles to pay rent and such but buys a new iPhone every time they release a new model.”
Incurring High-Interest Charges Due to Late or Missed Payments
One user said, “Credit card debt. If you don’t or won’t have the cash by the next bill you cannot afford, don’t buy it. Stop renting money at 18%.”
Source: Reddit
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