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 YOU make
   "FOOLish" decisions FINANCIALLY!

"The way of a fool seems right to him,
 but a wise man listens to advice
(Proverbs 12:15)."



FINANCIAL FOOLISH DECISION #20
NOT READING THIS COMPLETE LIST!

 FINANCIAL FOOLISH DECISION #19
PURCHASING A HOME AND BUYING ALL NEW FURNITURE....AT ONCE!

EXHIBIT A:
  •   Buying ALL new furniture in the "exact" same time frame is silly!
Why?

  • Buying a new home will automatically drop your credit score. Anytime you make a huge purchase (borrowing money from the bank), your debt to income ratio will increase dramatically. This credit drop is normal for anyone who borrows a large sum from the bank. Eventually, as you pay down on your mortgage, your credit score will bounce back.

debt to income ratio definition:
  • A home purchase is extraordinarily stressful, especially for a first time buyer. Many people do not understand the extreme responsibility that is involved in caring for a home. A renter can call the land lord to immediately fix a problem. However, when you are buying your home, you pay out of pocket.
  • Sure there is home owners insurance, but as we all know, insurance only covers a specific amount.
  • Many people lose their homes because they have not adjusted to the extra cost associated with living in a house.


  • EXHIBIT B:

    • WATER BILL
    • ELECTRICITY
    • SEWAGE
    • GAS BILL
    • LIGHT BILL
    • GRASS/OUTSIDE MAINTENANCE
    • UPKEEP INSIDE OF HOME
    • CABLE/TELEVISION
    • COMPUTER INTERNET
    • HOME OWNERS INSURANCE
    • FOOD
    • EXTRA CURRICULAR ACTIVITIES
    • CLOTHES
    • TAXES OUT OF YOUR PAYCHECK
    • CHILDREN (IF YOU HAVE THEM
    • H.O.A (IF YOU HAVE ONE)
    • PETS (YOU PROBABLY HAVE ONE)
    • CAR/TRANSPORTATION
    • GAS
    • STATE TAX
    • FIX YOUR CAR WHEN IT IS BROKE
    • HEALTH INSURANCE (IF YOU ARE SMART)
    • LIFE INSURANCE (IF YOU ARE SMART)
    • MISCELLANEOUS CRAP!!!
    • AND NOW YOUR MONTHLY BILL OF.....FURNITURE BOUGHT TOO SOON?????



EXHIBIT C:
Lets not forget to clean!!!!



I HOPE YOU SAVED MONEY FOR A CREDIT COUNSELOR, THERAPIST, AND LAWYER!






YOU ARE GOING TO NEED ALL THREE AND MORE!!!!

Find a Psychiatrist IMMEDIATELY!
http://www.healthgrades.com/psychiatry-directory
Find a Lawyer IMMEDIATELY!
Find a therapist IMMEDIATELY!
http://therapists.psychologytoday.com/rms/


YOUR WISE CHOICE!
EXHIBIT D:
Lovely!!!!!

EXHIBIT E:
Garbage Chair...lovely but inexpensive!
  • Always purchase furniture for your new home in small increments. Buy a couch this month and a lamp the next. It is never a wise decision to run off and buy an entire house full of furniture....especially after/during a home purchase.
Beautiful House Furniture!!!!
Money Saving Tips for your home!
http://www.greensavetn.com/Money_Saving_Tips.html
Biggest Energy Users

FINANCIAL FOOLISH DECISION #18
NEVER READING YOUR CREDIT CARD STATEMENTS!

EXHIBIT A:
  •  It is very foolish to never read your credit card statements!!!!

Why??



EXHIBIT B :

  • Credit card companies are notorious for changing rules and notifying you only through your statements that YOU NEVER READ! You may be paying more fees than then you think....



EXHIBIT C:


YOUR WISE CHOICE!

EXHIBIT  D:

  •  Read every bank statement or monthly bill that you pay....REGULARLY....

EXHIBIT E:




FINANCIAL FOOLISH DECISION #17
 LIVING OFF OF STUDENT LOANS!

EXHIBIT A:
  • Seriously???? Do I need to explain why this is foolish???
Why?????

  • Eventually, you have to pay back the money you borrow. Student loans can only be deferred for a certain length of time before you are forced to pay them back. Many people continue to go to school in order to defer paying back these loans. This is not smart!! You will still owe them money....just more.
     
The more you borrow, the more you pay!
  • Student loans are EXTREMELY hard to get out of paying, this includes after filing for  bankruptcy.
  • Do not believe that if you file for bankruptcy, you will automatically be free of all of this debt.


YOUR WISE CHOICE!
  • If you know you can not pay back....
  • DO NOT BORROW!!!!

    "The wicked borrows but does not pay back, but the righteous is generous and gives ( Psalm 37:21)."

EXHIBIT C:

"When you vow a vow to God, do not delay paying it, for he has no pleasure in fools. Pay what you vow


EXHIBIT D:

  




FINANCIAL FOOLISH DECISION #16
 "RENT TO OWN"

EXHIBIT A:


  • In the long run it costs more to rent a living room set.  The monthly payments may be lower, but in the end you will be paying much more!

Why?
  • Companies charge more to rent. A renter is a higher risk.

Renting furniture:


YOUR WISE CHOICE?

EXHIBIT B:
This really isn't that bad.....
  • Think twice before you rent. Sometimes renting is a great option. 


College students may benefit from renting furniture!

New York Times, Home Rent Calculator

Renting A Home Costs 15 Percent More Than Buying One! Huff Post



FINANCIAL FOOLISH DECISION #15
  "NEVER PAYING YOUR BILLS!"
EXHIBIT A:




  • Not paying your bills or constantly making late payments is not a smart idea. Creating patterns like these will ruin your credit score. Late fees can become very expensive. Each time a person decides not to pay their bills, many companies will report this information to the 3 credit bureaus. 
EXHIBIT B:


    EXHIBIT C:

Your credit score is your life!


Negative impacts of having Bad Credit:
  • DECREASED ABILITY TO FIND A DECENT JOB!


EXHIBIT D:
  • NOT BEING ABLE TO OWN A HOME!
  • DENIAL OF LOANS OR PURCHASES!
  • CONSTANT COLLECTION CALLS!
  • COURT FEES....AND MUCH MORE!

EXHIBIT E:

    EXHIBIT F:

YOUR WISE CHOICE?

EXHIBIT G:

  • Pay your bills if you have the money. If something happens where you are having difficulties...NEVER RUN FROM YOUR CREDITORS! Contact them immediately and let them know you are having financial difficulties. Many companies make concessions for loyal customers who notify them.




FINANCIAL FOOLISH DECISION #14
 "I GOT A SWEET CAR!"

EXHIBIT A:
Nice to look at!!!!!
  • Never purchase a car that is worth more than your home!

Why?

  • A car depreciates as soon as you drive it off of the lot. Total waste of money! Not to mention, heaven forbid if someone scratched your new sweet ride!
definition of depreciate
1. To lessen the price or value of.

YOUR WISE CHOICE?

EXHIBIT B:
Beautiful because it is probably cheaper....You think???

EXHIBIT C:
No shame in this is there? It still runs!!
  • Nice cars are very NICE! But, if you are going to invest your money, purchase something that increases in value over time, not decreases.
  • Remember as your transportation gets you from point A to point B, that all that matters!

How much is your car worth?
Official Kelley Blue Book










FINANCIAL FOOLISH DECISION #13
 "HOW MUCH ARE YOU SPENDING ON YOUR WEDDING AGAIN?"

EXHIBIT A:
  • Average salary does not allow for the average person to spend thousands on a wedding. Keep a budget!
YOUR WISE CHOICE?

EXHIBIT B:
Okay...not the greatest place...but maybe they have a wonderful marriage?
Hilarious Tacky Weddings!
http://tackyweddings.com/

  • Your wedding is one day, your marriage should be a lifetime. Spend the money where it counts....
Getting married? How to talk about money!
The average wedding costs exceeds median income in the U.S.




FINANCIAL FOOLISH DECISION #12
 CONSTANTLY LENDING MONEY!


EXHIBIT A:


No one will pay you back.....sorry......



Why?
  • This is just the way human beings are. If you continue this pattern, you will be the one who has to do the borrowing.

Guess what?

THE PEOPLE WHO BORROWED MONEY FROM YOU,  
WILL NEVER LOAN IT BACK TO YOU! 

EXHIBIT B:


YOUR WISE CHOICE?

EXHIBIT C:

NOTE TO CHRISTIANS:
 If you reverse the words you always preach, "NO HELL," you can actually use it for your own good for a chance....instead of condemning others.....

  • Never lend ANYTHING and expect it in return. If you would like to help someone out....GIVE THEM THE MONEY!! DO NOT EXPECT IT BACK!


"And if you lend to those from whom you expect to receive, what credit is that to you? Even sinners lend to sinners, to get back the same amount. But love your enemies, and do good, and lend, expecting nothing in return, and your reward will be great, and you will be sons of the Most High, for he is kind to the ungrateful and the evil



BORROWING MAKES ENEMIES!

EXHIBIT D:



FINANCIAL FOOLISH DECISION #11
 TAKING OUT A SECOND MORTGAGE FOR A PAINT JOB?

I am speechless...!!!!!!

What are second mortgages?


YOUR WISE CHOICE?
  • Unless your paint job looks like the any of the  images below, YOU DO NOT NEED TO TAKE OUT A SECOND MORTGAGE FOR IT!!!

EXHIBIT A:

EXHIBIT B:

EXHIBIT C:


EXHIBIT D:

  •  Always concentrate on paying off your first mortgage. A second mortgage should only be taken out for EMERGENCIES ONLY....

EXAMPLES OF EMERGENCIES:
  • SICK FAMILY MEMBER
  • EXTREME NEED FOR DISABILITY ACCOMMODATIONS
  • DEATH

This house....emergency!!!!


EXHIBIT A:




Even her face is an emergency!!!
EXHIBIT B:


NON-EMERGENCIES BELOW:

EXHIBIT C:
ATLANTIS .... GORGEOUS!!!!

FAMILY VACATION PRICING INFORMATION:


EXHIBIT D:
I really really want one of these dresses....I have got to take out a second mortgage!!!!

FINANCIAL FOOLISH DECISION #10
 PLANNING TO START A FAMILY, BUT YOU CAN NOT AFFORD YOUR RENT!

EXHIBIT A:
How many is too many?????


??????????
Why?

  •  Children are expensive! Having a child without being able to pay your mortgage is a HUGE mistake. Financial problems will increase....dramatically!

YOUR WISE CHOICE?

EXHIBIT B:




 EXHIBIT C:
Get a dog !!!!
  •  Do not listen to your friends when they tell you "you will never have enough to have a child!" This may be true...to a certain extent. Many people will never be able to give their children "everything" they want and need. However...
YOU SHOULD BE ABLE TO AFFORD FOOD AND WATER FOR YOURSELF FIRST.....

EXHIBIT D:

Did you know?
  • The average median income family will spend $235K , excluding college, to raise a child from birth to age 18.

 Child costs until age 18
Childcare costs survey 2012
Average child care costs by zipcode
Baby costs calculator



FINANCIAL FOOLISH DECISION #9 
 TAKING OUT 300 CREDIT CARDS BUY NOW, PAY LATER!

EXHIBIT A:
"BUY NOW, PAY LATER!"
       At least they were honest!!!!!!!!!!!!
  • If you have to purchase anything on credit....YOU DO NOT HAVE THE MONEY! Interest accrues on each of these cards. If you do not pay it completely off before or on  the mandatory date, you have a SERIOUS problem approaching!

YOUR WISE CHOICE?

EXHIBIT B:
  • It is perfectly fine to have a few credit cards, but too many at one time is another scenario.
  • All of the credit card payments that you currently do not have to pay, will ALL be due around the same time......AT 100% more interest rate...GUARANTEED!






FINANCIAL FOOLISH DECISION #8
 PURCHASING A HOME THAT REQUIRES THE "ENTIRE "INCOME OF TWO PEOPLE

EXHIBIT A:



It takes two right?

  • A  home purchase should not require  the "entire" income of BOTH partners. If one person loses their job, BOTH will be out of a home.

    EXHIBIT B:


YOUR WISE CHOICE?

EXHIBIT C:



EXHIBIT D:


  • Live below your means. Always have enough money saved for emergencies.


You never know what may happen in life!



FINANCIAL FOOLISH DECISION #7
SPENDING 50,000 ON YOUR ONE YEAR OLD'S BIRTHDAY PARTY!

  • STUPID, FOOLISH, CRAZY!!!!!!!!!!

    EXHIBIT A:
Why?
  • Because a one year old really understand the meaning of money.
  • AND BECAUSE YOU WANT EVERYONE ELSE TO BELIEVE YOU ARE A WONDERFUL PARENT.....THIS HAS NOTHING TO DO WITH YOUR CHILD AND EVERYTHING TO DO WITH YOUR EGO.



YOUR WISE CHOICE?

EXHIBIT B:





  • Throw them a small party. They will still be happy, and so will your bank account.


Birthday party ideas for parents!




FINANCIAL FOOLISH DECISION #6
CHOOSING FORECLOSURE?

EXHIBIT A:
Will ruin your life!!!!
  • It costs a bank more to foreclose then it would to let the current "owner" (as people have been falsely taught) of the home remain. 
Why?
  •   Because when that property is left by the previous "owner" then the bank has to pay a lot of money just to keep the property looking decent.

YOUR WISE CHOICE?
EXHIBIT B:
Information about short sales
DIRECT QUOTE FROM MY OTHER ARTICLE:
HOW TO GET FREE MONEY!




FINANCIAL FOOLISH DECISION #5
RUNNING AWAY FROM YOUR CREDITORS


REFER BACK TO FOOLISH # 15 IN ADDITION!


EXHIBIT A: 

  •  Pay your bills if you have the money. If something happens where you are having difficulties...NEVER RUN FROM YOUR CREDITORS! Contact them immediately and let them know you are having financial difficulties. Many companies make concessions for loyal customers who notify them.

How debt collectors track you!
Creditors can sue you
How to handle Debt Collectors!

If you are going to "attempt" avoiding your creditors, you may as well do it right.
(You can thank me later ;o).

Right ways to hide from creditors












FINANCIAL FOOLISH DECISION #4
BUYING EVERYTHING NAME BRAND

EXHIBIT A:

  • Why would you pay extra for a giant "G" that symbolizes Gucci??? ALL THE TIME?????

 EXHIBIT B:

EXHIBIT C:
I love this Gucci purse! I am super happy it is on sale for $1500!!
Check it out! Originally over 2,000!
No haters please :o/


YOUR WISE CHOICE?
EXHIBIT D:

My latest handbag creation!! What do you think??

  • I am a very creative person! Pay me the the money and I will take a shirt half price and sew the "G" on for you. I promise no one will ever know the difference.
Sorry No Refunds though...

 EXHIBIT E:






FINANCIAL FOOLISH DECISION #3
SPENDING MORE THEN YOU EARN
EXHIBIT A:



 Why?

  • If your bills total two thousand a month, and you spend four thousand per month, that just means you are in the negatives.

EXHIBIT B:
EXHIBIT C:


YOUR WISE CHOICE?
EXHIBIT D:
  •  An increase in money will NEVER resolve your financial problems. Learn to be diligent over what you currently have. There are PLENTY of millionaires who are broke.





FINANCIAL FOOLISH DECISION #2
 CO-SIGNING FOR A FAMILY MEMBER

Why?
EXHIBIT A:
  • Unless you are intending to pay the entire amount, this is a definite "NO NO!" Family members....you "gotta love em" but many people go into major debt because their irresponsible family member neglects their bills. If you co-sign, you are telling the lender  you will make the payments (in it's entirety) when your family neglects to pay. You pay TWICE for what they could not pay for ONCE!




YOUR WISE CHOICE?
EXHIBIT B:
  • I know you may be trying to be nice, but NEVER CO-SIGN! It is better to just give the person a small amount out of pocket, then it is to get your name off of that credit statement.
How cosigning affects your credit score:
Additional information on Cosigning: Hub Pages

 



FINANCIAL FOOLISH DECISION #1
 TAKING ADVICE FROM PEOPLE WHO ARE MORE FINANCIALLY IGNORANT THAN YOU!


DO I NEED TO REALLY EXPLAIN THIS????????

WOULD YOU......
  • Take marriage advice from a person who has been divorced 20 times?
  • Get hair advice from a person who is bald?
  • Make-up advice from a clown?
  • College advice from a kindergartner?
  • Home advice from a person who has foreclosed on their home many times?
  • Sex advice from a toddler????
  • Cooking advice from me??????


EXHIBIT A:


EXHIBIT B:
COME ON FOLKS, YOU MAY NOT HAVE AGREED WITH THE ALTERNATIVES I PROVIDED YOU WITH
 BUT....

GET IT TOGETHER!!!!!

EXHIBIT C:

"It is better to heed a wise man's rebuke than to listen to the song of fools
 (Ecclesiastes 7:5)."



WRITTEN BY: TE-SHANDRA HASKETT, MBA



SPECIAL NOTE TO READER: 


Did you notice that the choices provided went from one extreme to the other? Many times we purchase things that are above our means for other people. We want to "show" others how well we are doing by our fine possessions. Unfortunately, making fancy purchases specifically for this reason, will only lead you into a path of misery and destruction. If you are embarrassed to be seen buying anything that is not fancy, be sure to ask yourself why.

As embarrassing as it is to purchase a piece of crap....it is still better than filing bankruptcy......

Think twice before you buy!




Somewhere in the middle is probably your wise choice!













" Of what use is money in the hand of a fool, since he has no desire to get wisdom

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