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Warning signs that you're headed for financial ruin

Posted Aug 26 2008, 01:49 PM by Karen Datko
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To borrow a phrase from Dave Ramsey, bad financial behavior has become acceptable and "normal." Are you engaging in all-too-common practices that can lead to ruin?

"Mr. ToughMoneyLove" of the deliciously snarky Tough Money Love blog describes 10 common financial practices that really should be avoided. For example: "You are comfortable being upside down." Somehow, owing more on your house, car, etc., than they're worth has became routine, Mr. ToughMoneyLove laments.

Here are a few more samples from this exceptional post, called "10 warning signs of a normal financial life":

    • You brag when you buy something with no money down.

    • You think repaying the loan you took from your 401(k) is an investment. "This is nonsense," Mr. ToughMoneyLove writes. "Please don't go there."

    • You refinance your house to get cash to pay off debt. He says, "Uh ... what part of 'debt' don't they understand?"

    • "You spend more time monitoring your credit score than you do evaluating the performance of your investments."

    Bonus: If these situations seem all too familiar to you, you might want to take advantage of a free opportunity at MSN Money to pose questions to a certified credit counselor.

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    Comments

     

    People are stupid.... this is why the US is going to be hurting when the baby boomers retire..... the strain of millions of people suddenly retiring with little saved for retirement and the fact they will live longer then their parents did is going to hurt our economy.

    My generation isnt much better..... we would rather look rich then actually be rich.

    Mike Johnson (Posted 08.26.08 11:54 PM ) Report Abuse

    What we all need to do is to work longer to increase social security funds.  It is the truly patriotic thing to do, and we benefit personally as well - it keeps us productive.

    diane (Posted 08.27.08 8:36 AM ) Report Abuse

    To Diana....forget it, I ain't working longer.  I am investing more in retirement funds so I can retire and do all of the things I dreamed about.  

    As for the partriotic part...our gov't squandered the social security fund away.  I am not giving them any more of my hard-earned money to misuse.  

    RealityCheck (Posted 08.27.08 3:26 PM ) Report Abuse

    yeah, as a young person of 25 i must say that i hold no hope that i will receive social security. as jaded as it sounds, i'm used to my government taking my money and using it to their own gains (like 7 homes, *cough*MCCAIN*cough*).

    ring of jade (Posted 08.27.08 6:16 PM ) Report Abuse

    We need to stop overly worrying about economic inflation and start to understand the dangers and fruitlessness of "Lifestyle Inflation"

    Uncommonadvice (Posted 08.28.08 5:19 PM ) Report Abuse

    Okay, Ring of Jade, so what are you going to do about it?  At 25 you have a lot of time to invest in a retirement fund for yourself.  Stop whining, stop spending and start saving

    Recent Retiree (Posted 08.30.08 8:07 AM ) Report Abuse

    PS Ring of Jade.   The government didn't buy those homes for McCain.  He bought them with his own  money which he earned and "invested".   People don't get rich working for other people.   They get rich making their money work for them.  

    Recent Retiree (Posted 08.30.08 8:11 AM ) Report Abuse

    Everyone spends differently but most of us overspend.   It sometimes can seem

    overwhelming owing money.  Easiet way to get out out of debt?   Make small

    changes and stick to them.   Big changes are great if you stick to them.... however

    it is more important changing the direction.   Am I better off this month than last

    month?  Answer yes consistently every onth for 12-24 months and things will turn

    around fast.

    Al / Canada (Posted 08.30.08 8:31 AM ) Report Abuse

    Attn: ring of jade (Posted 08.27.08 6:16 PM)

     Don't worry your young head off about " i hold no hope that i will receive social security."  You will receive Social Security but what good will it be if a loaf of bread costs $5.00 - $6.00 or a slurpee costs $3.50.  Stop regurgitating what all the other college students and fanatics state.  You generation is SCREWED.  Your standard of living is going down unless you take your mindset out of circus politics and focus your energy on accepting the fact that everybody is greedy (Including you).   Greed is the only way out of this terrible mess.  Oh and by the way,  I am a Libertarian and not a McCain supporter.

    Paul L. (Posted 09.01.08 10:34 AM ) Report Abuse

    What else can go wrong we ASK.......Plenty, get your financial house in order and take ownership of your own retirement.  Be conservative with your daily spending habits and live within your means.  Each new generation would rather look rich and spend their golden years poor!

    Marty (Posted 09.04.08 5:17 PM ) Report Abuse

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