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TT #40: How to Squander Money

15 Apr 2009
Thursday Thirteen

How to Squander Money
or Why I Don’t Follow the Step-father’s Financial Advice

Financial adolescents commonly believe it’s not their fault they have money troubles because (1) their parents never taught them about personal finance or (2) their parents were bad with money.  I have two words for these people: Spare me.

Their parents probably never taught them how to use the TV, but I’m sure they figured out how to work the clicker.  And, frankly, at some point–like at the age of 18 at the LATEST–these people need to grow a pair of ovaries (or whatever) and take responsibility for their financial decisions and the consequences of those decisions.

Me?  I was fortunate because I got to watch the step-father make one financial mistake after another and resolved to NOT do what he did.  It’s not rocket science; it’s logic.  He did A and bad things happened, therefore I won’t do A.  That’s all there is to it.  (I’m not saying I haven’t made financial mistakes; I’ve committed a few doozies.   But that’s a topic for another post.)

Number 1
Buy into the greatest scam ever extended warranty.

Number 2
Not use the extended warranty because a phone call is too much hassle.

Number 3
Buy in bulk just because it’s on sale…and end up with 40 lightbulbs collecting dust in the closet for 10 years.

Number 4
Get the latest and greatest features…even if you don’t know what they are or how to use them.

Number 5
Have medical and dental insurance…but don’t use it for fear of annual check-ups being seen as abusing the system. Because, hey, major procedures are so much cheaper than preventative maintenance…especially after you’re laid off.

Number 6
Put too much of your money into your company’s stock…and not follow suit when the senior executives unload their shares.

Number 7
Not pay off your mortgage early because you think you’ll get a better return by playing in the stock market.

Number 8
Chase after the latest investment fad…at the tail end of the fad’s life.

Number 9
Think the stock market will always go up and people who tell you to not be too greedy are secretly jealous and don’t want you to be financially successful.

Number 10
Buy into illiquid, risky investments with money needed in the short term.  (Luckily for him, the Bank of Ann doesn’t charge interest for short-term loans…or long-term loans…or very, very, very long-term loans.)

Number 11
Think high-interest savings accounts and GICs are not worth the time to submit the on-line applications.

Number 12
Assume your employment, raises, and pension are guaranteed and neglect retirement planning.

Number 13
Don’t admit your mistakes because they’re not real unless you say them out loud.  And really, they’ll just fix themselves if you ignore them long enough.

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16 Comments leave one →
  1. 15 Apr 2009 5:56 PM

    Sound advice. I think the trick is not to make the same mistakes twice. Great list. Happy T13!

  2. 15 Apr 2009 7:50 PM

    Great list, and shame on him!

  3. 15 Apr 2009 8:32 PM

    Great List! You’ve given it good thought.

  4. 15 Apr 2009 8:47 PM

    Sounds like you’re pretty frustrated with him. Sorry. He must be such a worry for you and your mother.

  5. 15 Apr 2009 9:33 PM

    great list, very useful,especially now that most people have no money! 😀
    Thursday 13

  6. 15 Apr 2009 9:48 PM

    Great List! I have been guilty of several.

  7. 15 Apr 2009 10:27 PM

    Number 4 sounds like my MIL! This was my first Thursday 13, I like it!

  8. 15 Apr 2009 10:41 PM

    Great advice. Some of it sounds very familiar to me, LOL. Happy TT!

  9. 16 Apr 2009 3:02 AM

    Lol! I’ve made some financial mistakes but none of these, thank goodness. Sounds very frustrating to live with. Great list!

    Thursday 13 – edition 3
    Weekly Plans 4/13-4/20

  10. 16 Apr 2009 5:43 AM

    wow. That all sounds too familiar!

  11. 16 Apr 2009 9:01 AM

    I agree with some and disagree with some.
    Though I do have dental and vision that we pay for, we don’t use it because finances don’t always align, and we never know how much it’s going to cost 😦

    T13 – 54th Edition
    Weekly Plans: Come join in the fun

  12. 16 Apr 2009 4:16 PM

    What a great list! Thanks for the tips. Who doesn’t need a refresher course every now and again?

  13. 16 Apr 2009 4:39 PM

    I think I’ll print this out for a friend or two. *grin*

    Happy TT

    ~X

  14. 16 Apr 2009 5:44 PM

    Hilarious!!!

  15. 16 Apr 2009 6:11 PM

    A great not to do list. My TT is up. We definitely think along the same lines.

    http://collectingmythoughts.blogspot.com/2009/04/thursday-thirteen-miscellany-mostly.html

  16. Ann Bruce permalink
    16 Apr 2009 9:23 PM

    @Sarah @ TM2TS: His insurance covers everything so there is no out-of-pocket costs…yet he won’t use it.

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