“Don’t worry about it; I charged it”
“Whatever it is I bought as a favor for you, you don’t have to be in a hurry to pay me back. It’s on a credit card, so I won’t really miss the money.” And then when they do pay, I usually spend the money on something else that I can’t live without because it has to go into my checking account before it goes to my credit card. Do yourself a favor and don’t charge things for other people!
“I don’t care how much it is, I only care about the monthly payment”
I have bought so much shit this way. Cars, RVs, houses. “How much wiggle room do I have left every month? Let’s fill it with a payment for the next 5 years or more.” Especially stupid if you haven’t been saving or contributing to your retirement!
“I can afford it; I haven’t hit my credit limit yet”
For years, I ignored the balance on my debts and only focused on how much I had left available to spend. I felt like I was “winning” if I wasn’t tapped out yet.
“I’ll take the 0% financing deal; I’ll pay it off way before then”
This has only ever worked for me once, and even then it was a stupid risk. Most people won’t take the time to read the fine print, and if you don’t meet the deadline of the end of the financing offer, you could be hit with ALL of the interest since you bought the item, even if you only owe $1! And the interest rates are always horrible on offers like this.
“Give me the 30 year mortgage and I’ll pay it off in 15”
This is related to making financial decisions based on how much the monthly payment is. I’ve had both 30- and 15-year mortgages, and I can tell you on a 30-year you just keep paying and paying and paying for practically no progress. The balance never seems to change. The 15-year mortgage is like a financial orgasm every month when that balance goes down right from the get-go. Make the sacrifice and get the 15. And if you can’t afford the payment for the 15, then you need a cheaper house.
“I can afford the higher payment because I’ll get raises and start spending less”
No, you won’t. Your spending habits are not going to magically change and life just gets more and more expensive. Especially since chances are whatever you’re buying has hidden costs that you didn’t think about, like maintenance or insurance. And your annual 3% raise isn’t going to make that much of a difference every month, trust me. You would be far better off adding that 3% to your retirement account.
“This is a once-in-a-lifetime opportunity so I’ll charge it if I have to”
I’ve said this a few hundred times. This is buying on emotion, which is never a good thing. Funeral homes excel at this. Other opportunities always come around. And if they don’t, it’s not the end of the world. Trust me, no one is going to know or care and they certainly won’t remember if you bought the expensive casket or the cheap one.
What are some financially stupid statements you used to say?