Actions that Scream You Make Bad Financial Decisions: Are You Guilty of Any?

We can’t all make great financial decisions all the time. But sometimes, people’s actions are so egregiously bad for their finances that we can’t help but wonder what they’re thinking. 

When people do stuff like this, we can assume they consistently make horrible financial decisions. 

Constantly Asking Friends for Money

A man begs a woman for money as she holds it out of reach.
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It’s one thing to be short on cash every now and again, but it’s a different ballgame when you’re constantly begging friends for help with bills. It’s even worse when you don’t pay them back but buy vacations, games, and other luxury items. 

Fake Emergencies

Man shrugging as if to say "oh well"
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Some people take begging their friends to a whole new level by manufacturing emergencies they need money for. Perhaps their non-existent dog got sick, their grandmother passed away for the 6th time, or they spin a wild tale about a robbery. 

We can accept one emergency. But when emergencies happen constantly and get crazier as they go, we assume you’re lying for money. 

Poor Choices

Woman with glasses and one eye closed looks confused and unsure of herself.
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Some folks say they can’t afford clothing for their child yet constantly purchase expensive vehicle upgrades. We don’t want to tell people shouldn’t have anything for themselves, but if you aren’t putting your responsibilities first, you probably make poor financial decisions. 

Flea Market Economics

Stall full of random items at a flea market.
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People go to flea markets because items there cost less than they do at other stores. People who fail to understand this dynamic and, say, purchase a ton of nail polish and cosmetics from Walmart to sell it at a flea market probably don’t make good overall financial decisions. 

Don’t Know the Full Cost

woman shrugging with a confused look on her face on a pink background.
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When you make a big purchase, you should know everything about it. You should know the total purchase price, the loan amount, the interest rate, the payment timeframe, and the monthly payment amount. Folks focusing only on the monthly payment amount without worrying about the rest may not make the best financial decisions. 

Money Gone on Payday

Pretty money throwing money around on a light pink background
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Payday comes, and you rush to the store to buy all the things. That money burns a hole in your pocket so quickly that you barely even know you have it. 

Rent vs. Fun

bags of money balancing on a scale with a model of a house on the other side represening home equity.
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Why pay the rent when you can blow the money on a night out? You only live once, right? Well, most of us would rather not be homeless, but some folks make poor financial decisions and can’t plan that far ahead. 

Champagne Tastes

Fashionable wealthy woman ewaring white coat and hat with gold jewelry.
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Some people have champagne tastes on a beer budget. They insist on top-of-the-line luxuries for everything, opting for name-brand purses, expensive cars, and high-end clothing they can’t afford. 

Scarcity Mindset

Man holding money in one hand but shrugging with the other and making a face as if to say it doesn't matter.
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Poverty breeds a scarcity mindset. Sometimes people spend money immediately because they assume it will be the last big chunk they’ll see. Saving money is pointless because it will be gone. It’s hard to escape a scarcity mindset even when you’re no longer poor. 

Getting Suckered Into an MLM

Example of an MLM downstream pyramid with one person at the top and their downstreams.
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MLMs are financial blackholes. They prey on desperation; once you get sucked in, it’s nearly impossible to escape. 

Trying Too Hard To Look Wealthy

trendy woman dressed in blue wearing blue shaded sunglasses and making a duck fave towards the camera
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Some folks think wealth is about image. They’ll drown themselves in debt to make others think they’re wealthy. These folks drive expensive cars and deck themselves out in designer clothes filled with logos while barely scraping by. 

But hey, at least they look rich. 

Payday Loans

Woman looks at a bill and costs the palrty few dollars she has aina her wallet with a worried expression on her face.
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Payday loans are so predatory that the military forbids soldiers from using them. We get emergencies happen, and some folks literally have no other options. But vacations and engagement rings aren’t emergencies, yet people still turn to payday loans to pay for them. 

Make Better Decisions with a Financial Plan

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You don’t need to pay a financial advisor to craft a financial plan. Here’s how to do it on your own!

Read it Here: How To Make a Financial Plan

Want To Quit that Toxic Job?

Woman with her arms up and a pile of money in one hand glowing with happiness.
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Want enough money to quit your toxic job and not have to stress about it? You need an FU money fund. 

Find out how to build your FU Fund here

Extreme Frugality

A happy woman holding a piggy bank in one sign and giving the "okay" signal with the other.
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People share the most drastic things they’ve done to save money

Protect Yourself from Identity Theft

A hooded man working on a laptop with the words password flying down in a verticle direction to show he's a hacker.
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The threat of identity theft constantly lingers. Here are steps you can take to protect yourself

Frugal Hacks that Aren’t So Frugal

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These common myths about frugality often cost people more in the long run. 

Source: Reddit