We all have that friend. You know, that person who made a most fantabulous money mistake, and never learned from it. They keep taking their money and spending it in various “oh no you didn’t” crazy scenarios.
Back in the day, I knew a girl who did not know how to manage her money well. This is not an understatement. She took out a loan on her home and promptly turned around and bought a car. And a tummy tuck. And new clothes to fit said tummy tucked body. When she told me her plan and asked what I thought about it, I was a bit taken aback. I told her that maybe she should rethink this, and that it’s a really, really, really bad idea to owe more on your house for a tummy tuck. Especially when you don’t need one.
But did she listen? No. Did she adjust her eating habits and start an exercise regimen so that her new figure wouldn’t be for nought? No, she didn’t. She gained all the weight back.
On a separate occasion, she took out more money on her house to “decorate it”. This was during the part of the 2000′s where banks did what ever it was you asked for and interest rates were something to be dealt with later. So she was able to get more money, that she’d eventually have to pay back mind you, to decorate.
She never learned. Her mortgage kept going up and up and finally she couldn’t afford the monthly payments anymore. She had to sell her house. She then ended up being priced out of the area and eventually relocated out-of-state.
Once she moved, she didn’t really keep in contact with anyone, but I think of her often. I hope she finally got her financial act together. She really was a sweet girl, she just didn’t think about the ramifications of her actions in the long run. Instant gratification is no one’s friend.
Not when it comes to money.