We recently heard about the Mistakes Carnival, and we got inspired to have a good laugh at some of our dumber financial moments. Please, don’t try these at home!
He took out a payday loan at like 200% interest…then locked his keys in his car in the parking lot and had to call her collect to come rescue him. Yes kids, it’s true: She got a collect call from Check Into Cash.
She bought $500 Manolo Blahnik shoes because Sarah Jessica Parker said they were cool on Sex and the City.
She took out a student loan freshman year of college, right when she was learning about personal finance. She read somewhere that it’s important to start investing young, so she invested $1,000 of her student loan money in a Roth IRA. Her rate of return over the last 6 years: around 1%. The interest rate on that student loan: around 9%, with a term of 30 years. We refuse to calculate the cost of this mistake!
She bought a $300 Hermes silk scarf on ebay as an “investment.” As such, it’s un-wearable.
He got a debt consolidation loan then maxed out his credit cards within 3 months.
He bought a surround sound stereo system for $250 — then decided it wasn’t cool enough. He sold it to an acquaintance for $100, and then bought another home-theatre-in-a-box system for $700. And spent another $200 for an additional subwoofer.
We’re lucky we’re not bankrupt.