Get Premium
Dark mode theme is available exclusively for premium users. Learn more about the benefits of subscribing.
No fees, cancel anytime.
Dark Mode 
No fees, cancel anytime 
then open in external browser
and click "Open in External Browser" 
30 Nightmarish Financial Decisions That Left People Broke, Broken, And Bewildered
Interview With Expert
Nobody is born a financial wizard. You learn important lessons about spending, budgeting, saving, and investing through life experience and—hopefully—with the help of a good mentor. And any money mistakes you make, no matter how painful, are potential learning opportunities, so long as you have a growth-oriented mindset.
That’s not to say that any money-related blunders you make don’t hurt in the moment… they do. A lot! Recently, some AskReddit members opened up about the very worst financial decisions they’ve ever made. Scroll down for their stories, as well as the tough lessons they learned.
Bored Panda got in touch with personal finance expert Rick Orford, the author of 'The Financially Independent Millennial,' and he was kind enough to shed some light on getting out of debt and developing a healthier relationship with money. You'll find his thoughts below.
This post may include affiliate links.
#1
Do NOT, under any circumstances, loan money to a friend or co-sign any loans with them. It messes up your life for a long time when they do not pay their bills.
Colleen Glim 1 month ago
Never lend any money you aren’t prepared to lose. Doesn’t matter who it is or how trustworthy you think they are
According to personal finance expert Orford, a healthy relationship with your finances means spending less than you earn while investing the rest of your money. "The sooner we live by this simple rule, the better off we are in the long run!" he told Bored Panda in an email.
He shared some practical advice about how someone who's deeply in debt due to their bad decisions can get out of it. "Single mistakes happen. Life events, bad decisions, or perhaps 'kicking the can' can all lead to someone being deeply in debt. Luckily, no matter how bad the situation is, there's almost always a way out," he said.
"It starts with accepting that you have this debt, owning the fact you'll sort it out on your own, and then coming up with a solution to pay it off. A solution might be getting help, restructuring the debt (i.e. through a consolidation loan) or bankruptcy," Orford explained.
RELATED:
#2
Got 100k from my moms life insurance and blew it within a few years. I was 19. And so dumb. And so depressed. With no guidance. I learned the importance of saving lol.
#3
Buying pointless “things” that now are just clutter I want to get out of the house. Expensive life lesson.
Green Tree 1 month ago
Getting away from consumerism in general will be great for your wallet and mental health. You don't need to be minimalist, just fight the knee jerk to buy without thinking
Whatever the individual case might be, getting out of debt will mean that you'll have to start spending less than you earn. "Easier said than done, right? Well, consider this: to have more money at the end of the month, we either need to increase income, or reduce expenses."
The expert said that he prefers to start by reducing expenses. First, you'll need to create a list of all of your expenses from the last month, or the past three months, ideally. "From the list, it should be very clear what can be cut," Orford said.
"Then, look at ways to increase income. That could be creating a side hustle, asking for a raise, or changing jobs. Once you've done both, the bottom line should be significantly improved, and a surplus of income should be available for you to pay down debt."
As per The Guardian, credit card debt reached $1.17 trillion (yes, ‘trillion’ with a ‘t’) in the United States in the third quarter of 2024. This is up from $770 billion back in the first quarter of 2021. Living with debt can be incredibly stressful.
23% of Americans who earn less than $25k per year do not have a bank account. Meanwhile, 46% of Americans earning between $50k and $99.9k had a credit card balance. Low-income US citizens were more likely to use ‘buy now, pay later,’ payday, or pawn shop loans with average annual interest rates of payday loans at a mind-boggling 400%.
#4
Spent $100k to get a commercial helicopter license and then realised the life of a heli pilot wasn't good at all. Fixed term contract work, traveling around the country looking for work, low pay, couldn't buy a house, build a relationship, have kids in the way I wanted.Took a desk job instead and took 12 years to pay the loan back. Never flew again. My young brain got swept away with the idea of being a helicopter pilot without thinking it through.
In the end it worked out, apart from loving the flight training and living on the airport I also met my now wife. So the way I see it is it cost $100k to meet my wife who is now the guiding light in my life.
#5
Instead of starting my second year of college, I decided to drain my bank account to buy my (now ex) fiance a car. He swore he'd pay me back and that he only needed my money so he could buy the car before it was bought by someone else.
I was only ever paid back $200, our relationship ended a few months after the car was purchased, I nearly ended up homeless, I had to put off college for a few years, and I ended up having to get a restraining order against him. It's been nearly 17 years and I still regret every second of that whole relationship. Don't ever let relationships sabotage your security and independence...and don't be stupid with your money.
Amy Lee 1 month ago
Just like in a cabin depressurisation situation... Help yourself first. If you put yourself in a situation where you're helpless, you're good to no one, esp yourself. So many people put themselves on the line to make someone else's life a little better at a huge potential cost to themselves.
#6
I was in a cult for 3 decades. I learned that religion is stupid.
Research from Harvard shows that positive relationships keep you happy, healthy, and living longer. When you consistently invest time and effort in strengthening the bonds you have with the people you care about (avoid anyone who drains you!), you feel invigorated. And, at the end of the day, it’s your family and friends who truly matter the most in life.
That being said, even though your so-called ‘social fitness’ probably should be a priority, you can’t ignore other aspects of your life. Namely, your physical health and finances. A life full of quality relationships is amazing. But at the end of the day, you still need to put food on the table, keep a roof above your and your family’s heads, and keep the lights on. And you won’t get much of anything done if you’re constantly ill, out of breath, and lethargic because you’ve neglected your fitness and diet.
The simple fact is that so long as you keep your spending in check, a good income, decent savings, and steady investments give you more space to do what you want. More money means better food, education, medical treatment, and more free time. As well as a safety net in case of emergency.
According to Robert Waldinger and Marc Schulz, the authors of ‘The Good Life,’ money won’t buy you happiness, and people with more prestigious jobs and money weren’t happier in their lives. However, money is still a tool that can give you security, safety, and a “sense of control,” Schulz says.
#7
I had a job with a startup where the owner gave me some unrealistic goals and told me if I hit them, he'd make it worth it to me. I had nothing better going on, so I said "f**k it, I'll take that chance." I was salaried, so only getting paid for my 40 hours, while working 60+ hours a week for about a year. I hit the goals though and he surprisingly followed through. He gave me a huge under the table bonus. More than I would've made if he'd just paid me the overtime.
What did I do with that money? He said I should buy a house, it's enough for a down payment and interest rates were really low at the time. Instead I bought my dream car (a 1970 challenger someone had thrown a 440 and T56 transmission into). Don't get me wrong, I love that car, but houses then literally cost half what they do now and I still kick myself every time I think about it.
#8
Being born to poor parents. Just don't do that.
#9
I didn't start saving for retirement until I was 40.
I also grew up in a religious cult that taught me I didn't need to save because Jesus was gonna be back by the time I was 30.
Meanwhile, The Guardian reports that a new study conducted at the Wharton School at the University of Pennsylvania found an increasingly positive association between money and happiness. As per Matt A. Killingsworth’s research, there was a larger happiness gap between wealthy and middle-income people than between middle-income and low-income ones.
According to Killingsworth, “A greater feeling of control over life can explain about 75% of the association between money and happiness. So I think a big part of what’s happening is that, when people have more money, they have more control over their lives. More freedom to live the life they want to live.”
However, he added that “Money alone—which we’re already pretty motivated to pursue—is just one small part of the overall equation for happiness.”
#11
I bought a horse. What I learned from this was that I should buy another horse.
#12
Fell for ‘Buy Now, Pay Later.’ Now I’m Paying Forever.
hungryghost 1 month ago
Yeah, anyone should be avoiding any kinds of paylater payment options like the plague. It's a scam. Period.
What are the very worst financial decisions that you’ve made in life, dear Pandas? What lessons about money did you have to learn the hard way?
On the other hand, what do you personally think are the very best financial decisions you’ve made, whether intentionally or by accident?
We’d love to hear about your experiences. If you have a spare moment, share them in the comments!
#13
Going to a four-year university right after high school. I could’ve gotten my gen-eds done at community college for free and saved so much money before transferring to a 4-year. I was too worried about what other people like my parents, classmates, and guidance counselors thought of me. If I have kids of my own one day I’ll recommend they go to community college first.
DelvianBlue 1 month ago
I took a lot of community college classes and later became an adjunct professor at one for a number of years. If you're careful and pick a good one, community colleges can have classes that are just as good, if not better, than a 4 year college - and for a fraction of the cost! I took organic chemistry and physics classes that were just as challenging as the biochemistry classes I later took at a 4 year school. Community colleges can offer a quality education!
#14
I thought I was going to k*ll myself in 2021. I used credit cards like it was my last month on earth!
I am now paying interest on my s***idal ideation.
#15
I've p*ssed a lot of money into my parents' situation. I've come to the bitter realization that all their problems are the result of poor decisions and bad behavior, and no amount of money will ever dig them out of the hole they're in.
#16
Bought a 200 year old house.
I guess I learned. The next one we bought is only 100 years old.
Tamra 1 month ago (edited)
Our house is over 100 years old. I can attest that heating and cooling is an issue. Plaster walls with minimal to no insulation. Plus, repairs of any kind are usually more expensive, because you're dealing with materials and measurements that are no longer "standard".
#17
Marrying the wrong person.
Don’t marry the wrong person.
Ange Marsden 1 month ago
Marrying the wrong person lost me at least half a million - when people promise they'll change after marriage, they won't.
#18
Borrowed money to purchase a car. My wife and I were newly married and had started our first real jobs out of college. We purchased a car after 4 months of starting our jobs.
When we multiplied our payments times the number of months of the loan, we were horrified by how much that car was going to cost. This was made worse because she was a mathematician and I was an engineer.
We made double and triple payments to end the loan and swore to never again pay interest for anything. Except for a mortgage, we never have: no car loans, no credit card debt, no home equity loans, nothing.
#19
Buying a gym membership in January. Turns out motivation only lasts two weeks.
#20
Bought a brand new car. No one can afford a brand new car unless they just have tons and tons of money. The $400 a month payment was the worst thing in the world and by far the worst financial decision I ever made. I grew to hate that car.
Bi.Felicia 1 month ago (edited)
I've been looking into buying a new to me car, hopefully at some point this year, but holy c**p are they expensive. My current vehicle is 10 years old with about 145k miles. I was able to buy it out right, 6 years ago and it's been so nice not having a car payment. I've been looking at cars that are slightly used, about 2-3 years old and my payments are estimated to be at least $600/month. So I'm planning on saving as much as I can, as well as selling my current car privately, rather than trading it in, because you get more money this way, imo. I've also been working on my credit score, which should also help to bring my payments down. It's absolutely crazy, how much cars cost these days. You can't even find a hooptie for $500-$1000 nowadays. 🤦🏻♀️
#21
Got a car loan at 10% when prime was 3%, Never trust the salesman. Claimed the 10% was just a place holder until the banks opened.
Glen Ellyn 1 month ago
Use a credit union and always have your own financing ahead of time when you head to the car dealership.
#22
Move without securing a job first because I had a good amount saved up. It took me 6 months to find a job despite being in a high demand profession and with experience. The job market is tough af.
I had $22,000 saved up. Drained it all.
GreatWhiteNorth 1 month ago
This is why I just give a blank stare when people tell me if I hate my job so much just move and find another.
#23
I didn't file the proper form when I surrendered my house before foreclosure in 2016. One. Form. Didn't know, used an online tax service and that was that?
I was told by the collector I would never hear from them again. Oh, how wrong I was. See, the IRS thinks I owe taxes on the sale of the property, but I just handed over the property under the guise of washing my hands of the dire situation.
Last time I checked, the IRS wants over 100 grand. I got nothing for the house. Now I had to go to a CPA. My tax guy has delayed them, tried too casually to get a tax advocate to correct the problem. Almost 9 years later, they have kept every refund and I have this STILL hanging over our heads. The IRS has not waived a thing.
All because of one form.
Lost a house, lost all my money I put into the house, currently paying twice as much in rent as my previous house payments. Not a dime to spare. One. Form.
Shoulda. Coulda. Woulda.
#24
Gambling. You can't outgamble your losses.
Losing is not a problem in gambling, if u lost everytime you will not gamble anymore. Winning on the other hand is the problem.
The more u win, the more u increase your stakes. You lose some, win some. No big deal, I went to a casino once with 2 euros and came out with 500, the next day went in with 150 and ended up with -300 euros.
Its a brutal cycle where the money you make will not be enough to make long term changes in your life and you ll loose them anyway on the next round of gambling.
Meanwhile your brain gets so hooked on, that you make radical, illogical financial decisions on your daily life even if its not gambling. Like buying expensive stuff for your soulmate, cause u either feel bad losing the same ammount last night or feel confident that you can make more money if u won.
#25
Recently fell for a romance scam. Lost all my savings. I hate myself.
#26
I bought some fine art as an investment, but sold it a few years later for less than half what I'd paid. I should have trusted my gut, rather than some slick advisor.
#27
Have children. I learned not to have anymore. .
Blah Blah Blah 1 month ago
OVERRATED! Come at me all you want, I'll die on this soapobx.They're completely overrated especially in the US for SO MANY reasons!
#28
Racked up $20k in credit card debt in my early 20’s. My mom always warned me to be careful but since I knew better I just knew it wouldn’t happen to me. Lol. Anyways, aggressively paying for a few years + two covid stimulus checks + totaling my car helped finish it off. Haven’t carried a balance since.
#29
Legos long term strategy in the 90s was to hook kids on them and then drop their dream sets when they had the money.
I'm still learning from it.
#30
Lending friends or family significant amounts of money… just don’t.
Don’t mind lending you a few hundred until payday or something. But have had 2 different situations where I played myself.
Lent an uncle $5000 in like 2015. I was young and doing okay, uncle was in hard times. Asked him about it numerous times, always comes up with a new excuse as why he can’t pay me. I asked just to pay back monthly, throw me $50 a check or something to work it off. Haven’t seen a penny from him. We rarely talk anymore, and it’s definitely ruined our relationship.
Had a good buddy who I was friends with for years. Got himself in a bad situation. Begged for some help and the sucker I was, lent him $3000 to help out. It’s crazy cause the work this dude put in to sucker me; was honestly impressive. Had me totally convinced he just needed help and genuinely wanted to turn his life around.
Saw the dude few days later, gooned out of his mind. Guy promised me he was using my money to get a new apartment to get away from some people. Plot twist, he used it for d***s and alcohol.
Lesson learnt, don’t lend out money unless you expect to lose it. That extra $8,000 could’ve helped me out a boatload over the years. Or at minimum, took the wife and I on a sick vacation haha.
What do you think ?
ThisIsMe 1 month ago
Former friend of mine bought hundreds of Beanie Babies as an investment, thinking she was one day going to sell them for a lot of money. Do I need to explain why that was a bad idea?
Binky Melnik 1 month ago
Ah, geez. I hope she doesn’t own a buttload of NFTs, too. 😕
Load More Replies...
Earonn - 1 month ago
I've learned that not teaching your child about budgeting and saving, and instead always giving them money, even if it's not much, is also a form of neglect. And that some men only stay until the shared loan is paid off and the savings are high enough for them to "start a new life". Didn't work out for him, so that's that, but I'm also not able to save for retirement now.
ThisIsMe 1 month ago
Former friend of mine bought hundreds of Beanie Babies as an investment, thinking she was one day going to sell them for a lot of money. Do I need to explain why that was a bad idea?
Binky Melnik 1 month ago
Ah, geez. I hope she doesn’t own a buttload of NFTs, too. 😕
Load More Replies... Earonn - 1 month ago
I've learned that not teaching your child about budgeting and saving, and instead always giving them money, even if it's not much, is also a form of neglect. And that some men only stay until the shared loan is paid off and the savings are high enough for them to "start a new life". Didn't work out for him, so that's that, but I'm also not able to save for retirement now.
You May Like Guy Hides His Lottery Millions For Years Until He Meets The One And Can Finally Reveal It Netizens Are Sharing Scams Most Folks Fall For Without Realizing It, Here Are 32 Of The Worst Man Puts Off Buying Wife Much-Needed Car, Turns Out He Secretly Loaned The Cash To His Mom Instead
Monika Pašukonytė
Rūta Zumbrickaitė
Monika Pašukonytė
Related on Bored Panda
