Who wouldn't like to achieve financial stability? However, in a world that encourages instant gratification, many of us succumb to the allure of overspending, accumulating debt, and therefore end up living beyond our means.
Interested in what are the biggest pitfalls to avoid, one Reddit user made a post on the platform, asking everyone to share what they believe to be the biggest money mistakes. And to their delight, many responded.
Retirement might seem far away, but the longer we ignore our personal budget, the harder it will be to catch up down the line.
This post may include affiliate links.
Buying designer shoes and expensive jewelry for your baby. eliettgrace replied: I've heard seen stories where parents send their kid to daycare in Gucci and other designer s**t like that and then get mad when the clothes are messed up cause the kid had fun. 1lilhedgehog replied: I once saw a meme that showed tiny preschooler feet in Jordan’s and it said, 'You spend all that money for your preschooler to go to school in Jordan’s...just for them to be jealous of all the kids who have the light-up Paw Patrol shoes. lol too true.
Why buy designer clothes for children? They don’t understand what it is in order to appreciate it and they grow so fast, they’ll have outgrown them in a few months/weeks. Get them something they’ll actually need!
Going into debt for a wedding.
armyofsnarkness replied:
This is so true. A close friend is still paying off her wedding but the marriage ended last year.
Fancy, over the top weddings are nice, but the point of weddings is to display your love to you partner, and it shouldn’t cost thousands to do that!
When they have designer clothes and get their hair and nails done every 2 weeks but can't afford to pay the rent.
People who refinance their home in order to take a vacation.
You took a week off and only thirty years to pay for it.
Brilliant idea, bozo.
AssicusCatticus replied:
The neighbors across the street maxed out $25,000 in credit cards to take the family on a 'dream Disney vacation.' She said she'd be paying them off forever, but it was 'worth it for my kids to have this experience.' I was absolutely dumbfounded.
Downtown_Cat_1172 replied:
Kids don’t need that much. Seriously, give them a bunch of super soakers and let them loose at a picnic ground by a lake. They will talk about it for years.
TJ_Rowe replied:
If you go to any hotel with a pool, they'll be talking about that pool for years. I'm not kidding.
True! I remember all of the random, small things me and my siblings did in summer vacation like going to the park or pool more than any big thing years later
My STBXH.
- Quit his job 2 weeks after we bought our house, and then didn't tell me for 2 months.
- Has been unemployed for a minimum of 6 months every consecutive year since 2019.
- Forgot to transfer his (very small) portion of money to our joint account on payday last month, causing several of our bills to bounce. Got all defensive when I tried to explain why forgetting something like that is extremely risky, and when I tried to explore ideas on how we can prevent recurrence from something like that happening again.
- Bailed/ghosted on our tax appointment last year. As in, never showed up in the first place, and refused to answer phone calls and text messages, leaving me to fend for myself during the tax appointment.
- Suggested we take out a personal loan to cover our escrow shortage. But remember, he's unemployed. So GUESS WHO would be paying back the loan, even though we're already paycheck to paycheck? That's right, yours truly.
I could go on and on, but I'll stop there. I can't wait to be divorced from this deadbeat.
Seeing a a behemoth of a pickup truck with all the bells and whistles parked in front of a mobile home in a trailer park.
Having more kids than you can afford to raise
Ok_Department5949 replied:
I only had two for this reason. Putting them through college and grad school has always been in the back of my mind.
Signing up for a payment plan...for tattoos. I met a woman on a dating app once that had her whole body almost covered of tattoos. She had a low income job so I wondered how she could afford them. Turns out she was on a payment plan with the tattoo studio and I was like 'yeah, no thanks.'
I had a friend who had borrowed money from me, I thought she was in deep s**t at the end of the month, that it was to pay for food for her children. But no, it was for a new tattoo. Fortunately, she refunded me. We're not friends anymore, not because of that, but it didn't weigh in his favor.
My friend's roommate once asked him to borrow money so he could order novelty fart-smell spray from Amazon, instead of waiting for his paycheck.
There are worse financial choices than going into debt for a can of fart spray, but it's certainly the funniest one I've heard.
My wife’s siblings each just received a 117k disbursement from their mothers trust. So far one brother who doesn’t own a home nor a pension plan and is 55 went out and bought a brand new Harley Davidson Full bagger bike. The other brother, who was homeless three months ago is shopping for a Dodge Charger. He is 65 and can’t afford to retire. Her three sisters haven’t made any big purchases yet.It is tough to watch knowing how hard my in-laws worked to leave a little money for the siblings.
Hmm, at least the bike one the bike is around $30k. That still leaves around $87k. Doesn't say what sort of Dodge Charger so can't really tell how much the other brother is aiming to spend. But if he's got himself back into a place and set some money aside, maybe that's not a terrible thing either. Get a car he loves, keep working til he dies. If he's enjoying himself and happy...
always having the latest iPhone
I don't get how people have a desire to get used to a new phone every year. I just upgraded my Samsung phone. The new one is more fragile, and took me a while to get used to. Just like my old one. It's a pain the a**e. I'm keeping this new one for as long as I can.
I had a coworker who once complained that he was spending more money every week on cigarettes for his wife than what he spends on rent.
Wearing a $900 Gucci belt with your McDonalds staff uniform
Your car payment is more then your rent
Ordering out for breakfast, lunch, and dinner every single day.
Buying a timeshare.
Participating in a MLM scheme.
tripsz replied:
Don't you talk about my sister that way. She's a small business owner! She earned the privilege to get recognized at a company event this month and gets to purchase her own plane ticket! I'm sure her CPA husband is jealous of her success.
Smart fridge.
There is absolutely no reason for a refrigerator to need an internet connection!
Bottled water.
It costs more per gallon than gasoline and most people have been told that city water is sucky even though a ton of bottled water companies get it from municipal sources anyways.
And if you care, filter it at home.
Driving a very expensive car with tons of body damage because all their money is going to their $800 a month car payment and they can’t afford to fix the damage they caused with their s****y driving.
Windir666 replied:
I had this exact conversation with my friend today. If you cant afford to fix your car, you probably shouldn't be owning a 2022 $60,000 Mercedes.
tristanjones replied:
The financially responsible decision is driving a beat-up reliable car because you own it outright and most people intend to drive it into the ground before buying another one.
Firstly, this is why you get insurance. Even if you're the best driver ever and will never have an accident it doesn't mean someone won't smash into you. Secondly, you should be factoring insurance and basic maintenance into the costs. And most fancy cars cost way more than people expect. Even things like tyres cost double, triple or more than a "regular" car. My first car was second hand when I got it, and I drove it for roughly 20 years. In the end it was so worn out I sold it to a wrecker (it as 25ish years old by that point). Unless something drastic happens my current car will be the same.
People keep asking me when I'm going to replace my car, a 2012 Hyundai with 397,000 miles. It's paid for and runs well and I keep current on maintenance. So what if it has a couple of dings. It's not worth taking on a car payment of several hundred dollars a month just because of that.
I have a 2008 Volvo Station car, XC70, old type with actual independent 4x4. It gets the normal TLC and a yearly check at the dealer's garage. It was back then a decision for the future, to last at least 25 years. Technically it was way ahead of other cars, now it matches the features almost all cars come with. However, it looks old fashioned with all the buttons and knobs and no huge screen. But it does have this James Bond sunken display, which pops up out of the dashboard. In the meantime paid off, slightly dented and scratched from all the holiday adventures in rough areas and daily business for the stables. Did you know that 5 bales of hay/straw fit exactly in the back?
I've driven my 2000 Honda Civic for the past 5 years, it's never left me stranded, runs great and it's got new tires on it. I owe nothing to anyone for it.
There is a Hungarian saying: If you want to keep horses, you should have money for hay. Some people like to buy used luxury cars eg. a 15 yo. Merc S Class for $20k, they the go bankrupted when a transmission replacement costs $10k.
Remember that woman who bought her dream car (a Ferrari) but could not afford insurance? She had an accident on her very first drive. Not sure if this was real or only show, but it fits here I think.
Never had a car I could trade in. Always then to the ground. My car has just clocked 400,000Km and I hoping to get an extra 50~ 80 thousands out if her.
I have a neighbor with a 20 something daughter that got a brand new Honda Accord a few years ago and it has SO many dents and dings and damage, I'm surprised it's drivable. I realize all those many not be her fault, but if I was her parent, I would have bought her a used car so that the insurance wouldn't be sky high due to all the fender benders and all the dents and dings wouldn't look AS bad.
In France : driving a 300000 km fancy car, buying rims but cannot afford technical control and papers to make it road legal
We have a pretty new mustang in the neighbourhood with messed up fenders... they have not fixed it for a year
1983 red Volvo wagon (Sweden) new condition inside out. The red is fading. Completely paid for, considered a classic, but old enough for insurance and registration to minimal. Best part, does not need a mechanic for repairs.
I'm 56 I have had 2 cars only, always driving. Drove the first till it took its last gasp and doing the same with the current one. I get from a to b just fine with my Toyota Corolla, can't see an expensive car doing much different, except for the deep abyss of costs that would come with it.
my 2004 Pontiac Grand Prix is on its last legs, but I've gotten 307,000+ miles out of it.
I have a rusting 2009 Equinox. It gets me from A to B. It's paid for but is at the point its going to start needing some repairs. I've been glancing at replacements, used only, and just can't justify the cost for a vehicle with tons of mileage, only a couple of years newer. I'm accepting that I'll be driving my rust bucket for a while longer. Repairs n all.
LOL I drive a '97 F250 diesel. Almost 400,000 miles on it but, she is unstoppable. My daughters named her "Molly". 😀
Best car I ever had was one I got for $50 dollars. Fifty. It was back around 1998. Had to start it with a screwdriver. Drivers side door had forklift holes in it cuz last owner decided it'd be funny to raise it into the air. Could only get into the car from the passenger side. Thing ran like a charm and lasted me 3 years. Everything under the hood was in perfect running order which was shocking. Before that car, I got one from my parents as a late graduation gift.in '92 It was a volkswagon rabbit that my aunt/uncle owned. No power steering or power breaks. Bright a*s yellow. I named it Blake and I loved it. Someone ran a red light and hit the front side of the car. i was lucky to survive but Blake was totaled. Parents paid $250 for it. $5.00 filled the tank from empty (gas was like $0.95 a gallon. Oh the good old days.
I jad my 2001 Toyota rav 4, for 20 years. My husband drove it for 2 of those years. It had 117,000 miles on it and when I was given an inheritance from my parents after they had passed, i bout a used suv and it be the last car I own. Paid for it outright and got a insurance repair package for it for 100, 000 miles. Not that bad i der 1500 for 20 years
I drive a 96 caprice classic i inherited from my great grandparents back in 2010 (great grandfather died, great grandmother gave it to me cuz she stopped driving). I am the 3rd owner. I have driven it halfway across the US and back (central ca to new orleans and back). Still runs perfectly. Eta: when i got it it inly had 86k miles on it. It now has 120k
I have 99 Mercury Grand Marquis, bought it with 42000 original miles, it has 74k now. It has a little damage but it runs great and I bought it soley on the low miles and will drive it into the ground which will be around 200k miles
Same platform as a Lincoln. I had one with the 32 valve 4.6L engine. I drove it for 280K miles before the torque converter locked up. Gave it to a Ford transmission engineer and last I heard it was at 350K. Oil changes and really good oil seem to work for longevity.
Load More Replies...
Growing up we had a family friend that had the nicest trans am( hooked up real nice) but his kids were always raggedy
Big rims and tires that cost 4K on a car that's worth 2K.
Using a check cashing store or payday advance type company.
Bizarre_Protuberance replied:
Payday loans are predatory loans and would be forbidden in almost every other country. It's basically a loan shark business. But sometimes low income people need money for emergency purposes like the car broke down and they need to get to work.
nemesismkiii replied:
Oh this 100%. As someone who has worked in financial services, I HATE these places. I will always advocate if you have lower income or cannot seem to work up savings for whatever reason, try switching from a bank to a credit union for your banking needs. They may not be as large as banks or be as good for if you need to travel, but they are local and try to help their local communities since they are owned by them.
Agree with the commenters. It's not so much poor financial decisions as decisions made out of desperation (usually) and people don't think about what happens next when they are desperate to put food on the table today, or fix the truck they need to get to work.
Expensive leased car, living in a sketch neighborhood.
Bragging about how much you spent on something as if it was a positive. "Uhh, congrats on giving a corporation extra money, I guess?"
I had a friend nearly get evicted because he spent all his money on Funko Pops. Thought he'd get rich off them somehow.
Ordering DoorDash several times a week.
Buying a widescreen television on tax return day and bringing it home in a car held together by duct tape and prayers.
"Hey, can I borrow $15? I'll pay you back next week when I get paid."
With the above happening every other week.
Frequents a Starbucks. Coffee is way to cheap and easy to make well to spend that much per cup. If you do need a specialty coffee that often you are doing yourself a massive disserve not learning to make it. Everytime I see a Dutch Bros or Starbucks cup, I instantly register "*Ah, more money than sense.*"
I don't immediately judge someone with a Starbucks cup. It might be a once every few months treat, or they were desperate for coffee and there were no other options handy. But yeah, if they were getting it frequently? I would.
Lottery tickets
Depends. If you're only spending a few dollars here and there then it's as harmless as buying that coffee at Starbucks everyone likes to talk about. It still going to be gone by the end of the day. If your spending hundreds every month, then it's a problem.
I spent over 80$ tryna win a giant pikachu and failed
Could have bought that thing for 34$ but it was well worth it
So judgy. How are someone else's financial decisions really affecting you? So what if they have a new phone? That changes your life ZERO PERCENT. Jesus. Let people live. Life sucks enough without total strangers making sh!tty comments on your freaking belt.
“when I see someone with a Starbucks cup, I think more money than sense.” like geez, relax. It’s a cup of coffee.
Load More Replies...
People who are this financially savvy miss out on life. My grandmother was very frugal. Saved every dime, invested, lived on her "fixed income." Had millions in her retirement account when she got Alzheimer's. Now she's in a really nice facility that she hates bc she has no idea who she is or why she's locked up in some building. Made me realize how much of her life she wasted. She should've had more fun.
Load More Replies...
Poor financial choices or just exploited by capitalism and not paid enough? I do want to do fun things, take nice vacations, eat good food and have some things that bring me joy. I either buy them now and go into debt or hope I will be able to stay miserable for 20 more years and save up for them. If that time ever comes because everything is getting more expensive, only the salaries stay the same.
Right and by then, your knees go, your back goes, your heart goes, etc, etc.
Load More Replies...
HONESTLY - I worked with a man who, in the 1990s, spent all of his extra money on Beanie Babies, bragging that was his retirement plan. (PS: He had a PhD.)
I had an acquaintance who paid for most things with cash and would toss any coins he received as change into the bin in the center console of his car. After a year or so, the bin started overflowing. I pointed out that he probably had at least $100 in there. He said when it gets too full he just dumps the whole thing in the trash. It's too much bother to take the coins to the bank.
This is what I do with pennies. It takes so many to make any real $ so I usually just put them in the tip jar or take a penny leave a penny cup.
Load More Replies...
Spends all their pay on partying on Saturday night and then realizing Sunday night they don't have money left to pay for the rest of their week. But hey what a cool weekend man 🤦♀️
I love it when I see a woman with specialty nails (manicured with designs, etc.), a new phone, fake lashes, designer clothes, a new expensive car, lots of jewelry, but they pay for groceries with food stamps, while also buying beer/alcohol and cigarettes. And the groceries they buy are things like steak, fish, chicken, name brand items ( vs. store brands), all the things that are more expensive, and a massive load of junk food and sodas for the kids.
Beer and cigarettes aren't covered by EBT, she has to pay for those. Fish and chicken are healthy and covered. Steak? Well steak is also covered, it's healthier than most cuts of beef, AND you can feed 3-4 people with one steak. As for the snacks, whay, they should be miserable because mom's EMPLOYER pays her such a sh!tty wage that she needs to be on for stamps? Good car? Maybe she was fired or laid off the month after she bought it. Good hair and nails? Should she look raggedy while trying going on interviews? Jewelry? How do you know its real? Or maybe she tried to p**n it and they wouldn't offer a good price. YOU DON'T KNOW THIS WOMAN, mind your own business.
Load More Replies...
My favorite is coworkers complaining about not having any money, but as soon as VTO (voluntary time off [not paid]) is offered, they're out the door. You can forget about them volunteering for extra time/overtime.
I had to hold back from commenting on a lot of these because they showcase behavior of certain groups and I would be deemed culturally insensitive for pointing that out.
My sister learned her hb spend all his, their and her money and collected a lot of debt. But she wasn't any better.. a week after she found out she bought 3 Barbie dolls for her kid? And a few weeks after we went to a second hand market and first table she sees she was picking out carnaval costumes for her daughter. My mum had to pay those.
My thing is people that have bodies of tattoos. No prob if that's your thing. But they have visibility bad teeth. Wouldn't you prefer to eat and have no pain then to have an inked up body?
I could tattoo my entire body and not even come close to my dental expenses. USA USA...
Load More Replies...
This post is bringing out all the judgemental vibes & I really don't like it. Most of it is just gossip...'a coworkers brother's best friend's cousin...' ugh! People sharing these stories only know a little snippet of the situation their probably exaggerating. I don't even know what the point of this is.
Buying real estate in Florida in the 21st century. The insurance companies are bailing on the whole state because they know it's only a matter of time before rapid fire hurricanes start devastating America's w**g.
I had an ex-friend who bragged she was getting almost $8,000 on her tax return because she's a single mom with two kids. Instead of using it for a down payment on an apartment, or a car, or literally anything that would make her and her kids lives easier and keep them from relying on not only her family but also her friends, she bought herself a brand new wardrobe, and a bunch of unnecessary items that she made clear were for her and her only. $8,000 and she couldn't even be bothered to buy a package of diapers for her babies.
A friend was surprised that I had 2 YETI thermal cups since they are not cheap. I told her the truth, one was free (a promotional gift) and the other was on final sale for over 1/2 off as a discontinued color.
I had an assistant who came to work in a newer Mercedes (early 90s). It was a "gift" from her boyfriend, but she bought lunch at the grocery down the street with food stamps. Turns out he wasn't her BF, he was her pimp.
Honestly, the only one on here that I agree with 100% is having kids when you can't afford them. And to add to that: being against all abortions in all cases, but also being unwilling to financially nurture or support all those unwanted children..........that is NOT pro-life. That is just pro-birth. And that is a hugely bad financial decision.
Buying gourmet dog/cat food for your pet, and the cheapest items available for yourself.
I'd starve before I let my pets eat the cheapest food possible
Load More Replies... So judgy. How are someone else's financial decisions really affecting you? So what if they have a new phone? That changes your life ZERO PERCENT. Jesus. Let people live. Life sucks enough without total strangers making sh!tty comments on your freaking belt.
“when I see someone with a Starbucks cup, I think more money than sense.” like geez, relax. It’s a cup of coffee.
Load More Replies... People who are this financially savvy miss out on life. My grandmother was very frugal. Saved every dime, invested, lived on her "fixed income." Had millions in her retirement account when she got Alzheimer's. Now she's in a really nice facility that she hates bc she has no idea who she is or why she's locked up in some building. Made me realize how much of her life she wasted. She should've had more fun.
Load More Replies... Poor financial choices or just exploited by capitalism and not paid enough? I do want to do fun things, take nice vacations, eat good food and have some things that bring me joy. I either buy them now and go into debt or hope I will be able to stay miserable for 20 more years and save up for them. If that time ever comes because everything is getting more expensive, only the salaries stay the same.
Right and by then, your knees go, your back goes, your heart goes, etc, etc.
Load More Replies... HONESTLY - I worked with a man who, in the 1990s, spent all of his extra money on Beanie Babies, bragging that was his retirement plan. (PS: He had a PhD.)
I had an acquaintance who paid for most things with cash and would toss any coins he received as change into the bin in the center console of his car. After a year or so, the bin started overflowing. I pointed out that he probably had at least $100 in there. He said when it gets too full he just dumps the whole thing in the trash. It's too much bother to take the coins to the bank.
This is what I do with pennies. It takes so many to make any real $ so I usually just put them in the tip jar or take a penny leave a penny cup.
Load More Replies... Spends all their pay on partying on Saturday night and then realizing Sunday night they don't have money left to pay for the rest of their week. But hey what a cool weekend man 🤦♀️
I love it when I see a woman with specialty nails (manicured with designs, etc.), a new phone, fake lashes, designer clothes, a new expensive car, lots of jewelry, but they pay for groceries with food stamps, while also buying beer/alcohol and cigarettes. And the groceries they buy are things like steak, fish, chicken, name brand items ( vs. store brands), all the things that are more expensive, and a massive load of junk food and sodas for the kids.
Beer and cigarettes aren't covered by EBT, she has to pay for those. Fish and chicken are healthy and covered. Steak? Well steak is also covered, it's healthier than most cuts of beef, AND you can feed 3-4 people with one steak. As for the snacks, whay, they should be miserable because mom's EMPLOYER pays her such a sh!tty wage that she needs to be on for stamps? Good car? Maybe she was fired or laid off the month after she bought it. Good hair and nails? Should she look raggedy while trying going on interviews? Jewelry? How do you know its real? Or maybe she tried to p**n it and they wouldn't offer a good price. YOU DON'T KNOW THIS WOMAN, mind your own business.
Load More Replies... My favorite is coworkers complaining about not having any money, but as soon as VTO (voluntary time off [not paid]) is offered, they're out the door. You can forget about them volunteering for extra time/overtime.
I had to hold back from commenting on a lot of these because they showcase behavior of certain groups and I would be deemed culturally insensitive for pointing that out.
My sister learned her hb spend all his, their and her money and collected a lot of debt. But she wasn't any better.. a week after she found out she bought 3 Barbie dolls for her kid? And a few weeks after we went to a second hand market and first table she sees she was picking out carnaval costumes for her daughter. My mum had to pay those.
My thing is people that have bodies of tattoos. No prob if that's your thing. But they have visibility bad teeth. Wouldn't you prefer to eat and have no pain then to have an inked up body?
I could tattoo my entire body and not even come close to my dental expenses. USA USA...
Load More Replies... This post is bringing out all the judgemental vibes & I really don't like it. Most of it is just gossip...'a coworkers brother's best friend's cousin...' ugh! People sharing these stories only know a little snippet of the situation their probably exaggerating. I don't even know what the point of this is.
Buying real estate in Florida in the 21st century. The insurance companies are bailing on the whole state because they know it's only a matter of time before rapid fire hurricanes start devastating America's w**g.
I had an ex-friend who bragged she was getting almost $8,000 on her tax return because she's a single mom with two kids. Instead of using it for a down payment on an apartment, or a car, or literally anything that would make her and her kids lives easier and keep them from relying on not only her family but also her friends, she bought herself a brand new wardrobe, and a bunch of unnecessary items that she made clear were for her and her only. $8,000 and she couldn't even be bothered to buy a package of diapers for her babies.
A friend was surprised that I had 2 YETI thermal cups since they are not cheap. I told her the truth, one was free (a promotional gift) and the other was on final sale for over 1/2 off as a discontinued color.
I had an assistant who came to work in a newer Mercedes (early 90s). It was a "gift" from her boyfriend, but she bought lunch at the grocery down the street with food stamps. Turns out he wasn't her BF, he was her pimp.
Honestly, the only one on here that I agree with 100% is having kids when you can't afford them. And to add to that: being against all abortions in all cases, but also being unwilling to financially nurture or support all those unwanted children..........that is NOT pro-life. That is just pro-birth. And that is a hugely bad financial decision.
Buying gourmet dog/cat food for your pet, and the cheapest items available for yourself.
I'd starve before I let my pets eat the cheapest food possible
Load More Replies...