There is no other way to put it than sometimes good people make bad financial decisions. Had a bbq at my place for memorial day and a few friends over.
Ms C is a school teacher who bought a new house recently for $430k. Her dream home and it's lovely. Needs easily $200k in renovations but they got into a great town. However before they move in they have to rip out the electrical since it's Nobbin 2 and redo the entire place before it burns down. Should cost at least $10kish. They are closing on June 9th to buy and selling their current home June 12th if everything goes to plan. They however to buy the new house had to borrow from her husband 401k for the down payment and said they'll pay it back after they sell their other place. Plus afterwards they'll have money and be able to live again. This house will be able to fit in their budget again and they couldn't afford to close sooner since they can't afford to have a mortgage payment before August.
Writing that paragraph made me cringe. By the same token Ms A is at it again. Though her mother is kicking her out at the end of June from her pretty much rent free apartment, and she hasn't found a place to live, she went with her family away for memorial day weekend. Spending as she put it a fortune on a hotel at the last minute at an extremely expensive tourist area. They needed to get away from the stress of their life. They needed to bond. Sure it all went the CC but she said it was "needed".
Again writing that previous paragraph was tough. I know what can I say? We are throwing away all our income and moving on a whim. And we're living off savings as of right now. But at the same time we aren't borrowing money we don't have and we aren't borrowing in hopes of making it.
We are spending what we save. But perhaps it's just a hair different. Who knows. But there are a lot of bad financial decisions out there. And it's certainly hard for me to button my lip and not say "don't borrow against your 401k or charge stuff on a CC".
Bad financial decisions
May 29th, 2015 at 02:58 am
May 29th, 2015 at 03:04 am 1432868699
May 29th, 2015 at 03:11 am 1432869111
May 29th, 2015 at 01:27 pm 1432906029
Uh, seriously? 20k more to make ends meet? Then your ends are too far apart!
May 29th, 2015 at 04:31 pm 1432917070
AR I hope that we do find friends more in tune with our lifestyle. But part of the blessing of the move is just moving somewhere I think we fit in better in general.
Thriftorama, Ms A and Ms C say that all the time. An extra $20k or making more than $100k would solve their problems. Truth is at any income you have to still live within your means.