Post the most financially outrageous things you've ever heard of...

[littleteapot]

So here is a question for all you SAHMs on the board. Do YOU have life insurance? NOT on DH, but on YOU? If something happens to you, who is going to do what you do? I have a male friend who lost his wife to cancer. It has been a financial struggle since "we don't need life insurance on Suzy" (Name changed to protect the innocent) Well, now it's a one man shop and some of the things Suzy did for "free" have to be paid for. Things like child care????

Yes, I have life insurance. I always had a small policy, but we got a significant one when we decided to home school. It would be horrible for my children to lose Mom and then immediately start Public school. My insurance would allow dh to stay home for a while, or allow him to pay for good tutors or private schools.

 

[FluffyPumpkin78]

I have one to add!

On another board I frequent, this mom was venting because she wanted laser hair removal on her chin and face, and her husband wouldn't let her. SHe claimed that she had a gift card for $300, and the laser clinic was having some kind of sale so she only had to pay $600 oop.

So everyone was telling her to go ahead and do it, that she deserved it, to open a new credit card, or finance it at the clinic if need be. A couple of people questioned why her dh wouldn't allow her to do it, and she says that they don't really have the money and they are a "little behind" in bills.

Then she comes back to say her husband finally agreed to let her go ahead and do it.

I just shook my head at that one!

 

[DMRick]

Likewise, everyone we know refuses to sign-up for the "budget billing" program offered by their electric company. Seems they'd much rather deal with paying $200 one month then $450 the next in stead of $325 all the time. Whatev. Just stop bringing me all your BMW (*itching, moaning, and whining).

I have no problem paying my heat and light bill, but I also have no interest in doing the budget plan. I don't want to give them one penny in advance. I'll pay the $200 through the summer, and collect interest and/or use of my money until I have to give them the $450 a month in the winter. Maybe all the other people you know feel the same way.

That said, you guys know way more about your relatives and friends financial circumstances that I do (or would ever want to know). And they sure as heck don't know anything about mine, because other than suggesting stocks back and forth in fun, we never talk finances.

 

[ducklite]

Tell me what person earning the max $70K income can afford a $350K home?

Actually I think it was less than $70K--it is a ridiciculous amount that makes it IMPOSSIBLE for her to sell her home for what it is worth....and makes it LIKELY that in order to avoid a financial mess that is all but certain with her track record and current habits. But there ain't no way in heck that even with a MILD home appreciation over the years will the minimal income increases for the maximum allowed on her property--will ever match. Of course, maybe mortgages will catch up and it will be doable--but the house was on the market for a bit and got no bites.

It really is an illogical rule. B/c of the rule, the owner/builder--who foolishly agreed to that 99 year shackle, had to sell his home for 200K less than what it could have gone for. Of course he wouldn't have obtained a building permit and no home would have been built.

And sure if they had a monster down payment--they could do it...but it ain't likely. But with no buyers waiting--that is why they finally sold to my mom for the "deal" that she got--there was noone who could qualify.

In the end...my point was she probably could sell it--at a HUGE loss..at which point, foreclosure may be the better option she has most of the darn thing financed anyway.

OK, that makes sense now. My friend is married with two kids, so their maximum income for qualifying is probably higher, and I know that the home they bought wasn't worth anywhere near $300K. Sorry you're going through this with your mom.

Anne

 

[SlightlyGoofy]

CarolA, not only do we only have a tiny bit of insurance on me, the SAHM, but not much more on my hubby who is much older than I.

I asked him about insurance years ago and he replied "If I am dead what do I care"?

Just a warning to all you SAHM - most of you are only one man away from financial disaster. You can well end up working for the family for decades to find yourself broke in your old age.

Just a thought.

Slightly Goofy (who plans to rent a furnished room near a library)

 

[IluvDonald!]

A friend of mine, who has no extra money what-so-ever, went to the new casino when it opened.

Not only did she spend the $250 cash she took with her, but she inserted her credit card, and maxed it out at $1500!

Came home broke........

 

[MrsPete]

I just thought of another one:

When I was in my 20s, I had a friend who did NOT plan to have children -- didn't want them, ever, never. Children? Not a good choice for her and her husband. They weren't the nurturing parenting type, but instead they preferred to lavish all their attention on one another and spend their evenings and weekends drinking and partying. He had a child from a previous marriage, and it was a trainwreck all around: the child didn't like coming to thier house, she hated being a step-mom, and dad was rather lukewarm towards the child. She told me at least 1000 times that she didn't want to be pregnant -- ever -- because she thought it'd be really gross to grow fat and "out of control" of your body. She seemed fearful about the idea of being pregnant. She also had some serious medical issues, so pregnancy would've been dangerous for her. On top of all that, they were really, really bad with money. Bottom line: it was a good thing that these two had already made a "no child" commitment to one another.

So, enough about their background, on with the really outrageous thing they did: They hit a rough patch financially -- well, more rough than usual -- and she decided to save $20-30 per month by STOPPING BIRTH CONTROL PILLS! She figured that if she got pregnant, she'd just deal with having a baby she didn't want.

I tried to point out to her that birth control pills were something she couldn't afford NOT to buy, but she wouldn't hear it. Her doctor'd told her that IF she ever wanted to get pregnant, it'd be difficult for her, so it's not quite as bad as it would've been for the average person . . . still, to take a chance with conceiving a baby that you adamantly do not want . . . it's beyond reprehensible.

I wondered if she secretly had decided that she wanted a baby, but as I talked to her about that, I don't think that was the case. I don't think she was trying to catch her husband with a "surprise". I think she genuinely thought, "Hey, this is a place I can save $20-30 per month."

This couple moved across the country, and I lost track of them. As far as I know, she hadn't become pregnant. I hope her luck held out. Idiot.

 

[andrews1]

Anything on MTV's My Super Sweet Sixteen

 

[ExPirateShopGirl]

Good topic, Anne. The scary thing is, I think we all know people who do dumb things like this.

I have neighbors who went from doing well to making every bad decision possible. They live 3 doors down. We bought ur homes in 2000. From the sale of their previous condo, they were able to buy a $230k home and their mortgage was about $140k. I remember that figure because I was somewhat envious that my own mortgage wasn't under $200k. In any case, from the time we closed escrow on our homes they appreciated about $10k a month for nearly 6 years. That's a lot of equity. In nearly every subsequent year, these neighbors have refinanced and taken out more of their home's equity. Up until 2005 when the husband lost his full time job and they couldn't get approved for a higher mortgage. Recently she came to me to review letters she'd written her creditors to reduce the interest on her accounts. One was over 32% because she'd made late payments. THIRTY TWO PERCENT!!! I nearly died. Needless to say, I told her that telling the bank to reduce her interest rate because she couldn't afford it and in the same breath tell them her kids come first wouldn't go a long way to achieving her goal. If it weren't so sad, I'd laugh.

The things I find saddest of all, though, are the people who dont place value on things that can seem like a waste; insurance, longterm disability, dentistry, preventive healthcare, etc. and refuse to purchase them.

 

[tink2dw]

I should have know better but I spent $7000.00 of my mortgage refinace to go to WDW for 15 days!!

 

[EMom]

I have no problem paying my heat and light bill, but I also have no interest in doing the budget plan. I don't want to give them one penny in advance. I'll pay the $200 through the summer, and collect interest and/or use of my money until I have to give them the $450 a month in the winter. Maybe all the other people you know feel the same way.

That said, you guys know way more about your relatives and friends financial circumstances that I do (or would ever want to know). And they sure as heck don't know anything about mine, because other than suggesting stocks back and forth in fun, we never talk finances.

It's called "Balanced Billing'' or something like that here. We don't do it because our electricity bills are much higher in the summer. When they are lower in the winter, we have other expenses such as birthdays and Christmas. I want the lower winter electricity bills so that there is extra money in the budget for those things. We don't spend as much money in the summer, so I'd rather pay the higher electricity bills then.

 

[samanthacatangel]

It's called "Balanced Billing'' or something like that here. We don't do it because our electricity bills are much higher in the summer. When they are lower in the winter, we have other expenses such as birthdays and Christmas. I want the lower winter electricity bills so that there is extra money in the budget for those things. We don't spend as much money in the summer, so I'd rather pay the higher electricity bills then.

We don't do the Balanced Billing plan here because I know someone who did, and wound up using more than the gas company's estimate of her monthly usage. She got hit with a huge bill at the end of the year to make up for the difference.

I just pay as I go, for what I use. My electric and heat balances out between summer and winter with their inverse relationship.

As far as dumb $$ mistakes, I have made my share, but thankfully, most were in my twenties. Of course, that money would be real money with 20 years of growth by now. On the positive side, I definitely LEARNED from them.

I tend to think I know more about my good friend's personal lives with their husband's than their finances. I mean, I have friend's that I can only assume are in huge amounts of debt, with new houses, redone kitchens with Viking appliances, new cars, vacations all the time, never saying "no" to buying their kids things. There is no way they are in the black; I don't know how they sleep at night.

But it just makes me glad its not my problem. Although, sometimes I am a bit envious of the Viking fridge.

Samantha