One of my favorite things about personal finance is hearing all the crazy excuses people use to justify bad decision making. For example my friend pulled the, “My transmission just went out so I HAD to buy a brand new car” Since when did a little car work, justify the need for a new car loan? Maybe it’s a sense of entitlement, or perhaps a lack of responsibility? Maybe I’m crazy, but I think it’s time we slap our peers back to reality and remind them that financing a boob job (wonder how many pervs are gonna click that link) is a terrible idea. Here are some of the most common “crappy excuses” I’ve come across…
The only thing stupider than financing a new car, when your old one is broke, is financing a new car when there is nothing wrong with your old one. Seriously people, cars are not like shoes. They do not need to match your outfit. I know at least three people who sold there, perfectly fine, cars for some type of hybrid or ‘fuel efficient’ car. Ummm, really? You are going to sell your $8,000 Toyota Camry that gets 25mpg, and go finance a $30,000 Prius that gets 47mpg? Did you know, that prius will only save you about $600 a year in gas? Which means it would take more than 20 years to actually save money. Fuel efficiency is NOT a valid excuse for financial stupidity. (I’m not talking about people who can afford Hyrbids, so all you hyrbid owners can stop foaming at the mouth.)
Similar to the hybrid model above, I can’t believe how many people used the $8,000 tax credit as their excuse for buying a home. Since when did getting $8,000 from the government, warrant spending $300,000 of your own? Seems a bit crazy to me. Again, if you were already looking to buy a home and had adequate liquidity, then you made a smart move by taking advantage of the low market and the tax credit. Something tells me, however, a bunch of people went and bought homes they couldn’t afford, just because they felt like they were suppose to. Do you know anyone that took advantage of this credit or any other credit, that should not have?
This is probably the excuse that makes me want to punch a baby the most frustrated. You know exactly what I’m talking about, and sadly, some of you are probably guilty of it. I’m talking about the woman, who after complaining about how broke she is, goes and buys a pair of boots from Nordstrom because they were on sale. Or the unemployed dude who puts rims on his car because he got four rims for the price of three. You know the guy. He loves to say “I saved $300 buying these rims” when the truth is he SPENT $900 to get them. There is nothing wrong with looking for a good deal, but there is absolutely something wrong with buying crap you don’t need just because “It’s on sale!”
Man oh man, the list goes on and on and on. I can think of at least three more categories I could rant about (balance transfers, student loans, unemployment) but for the sake of not offending everyone, I’ll bite my tongue and call it a day. I’m sure many of you come across excuse makers every day. Care to share any of the ridiculous things these people come up with?