Individuals’ financial decisions can determine whether they qualify for a mortgage, car loan, or credit card. Some people make terrible choices with their Money and don’t seem to realize it or even care. An online group was asked to describe the things that indicate someone is awful at handling their finances, and the answers will astonish you.

1. Damaged Luxury Cars

It’s nice to drive a new car, especially a luxury vehicle. But it’s a bad look to drive a luxury car with considerable body damage that can’t be repaired because of the $800 a month car payment, one user remarks. Suppose a car payment is so high that essential car maintenance and repairs are unaffordable. In that case, that’s a sign of being overextended.

2. Dapper Babies

Dressing up babies in cute new outfits is a lot of fun. However, some parents take it further by purchasing jewelry, designer clothes, and shoes for their infants. Someone says buying designer clothes and shoes that will probably only fit them for a few weeks is silly and wasteful. And no infant has to be blinged out with gold and diamond necklaces and bracelets.

3. Expensive Cars in Sketchy Neighborhoods

There’s something illogical about seeing someone who drives a pricey late-model vehicle yet lives in a neighborhood that looks like a war zone. Conversely, many people live in six-figure homes in nice communities and drive cars at least ten years old. Owning a nice house versus a new car shows where their priorities are.

4. Check Cashing Stores and Payday Loans

Check-cashing stores are an expensive alternative to banks for people who don’t or can’t have a bank account. These stores charge cash paychecks for a substantial fee. Payday loans provide high-interest, short-term loans that can be difficult to pay off. These establishments tend to be located in lower-income neighborhoods, where residents don’t have access to traditional financial services.

5. Home Loan Refinancing

A commenter observes how people are refinancing their homes to take a weeklong vacation, only to spend the next 30 years paying it off. It’s one thing to refinance a mortgage for something urgent, but refinancing for a vacation means they can’t afford to go. Save up for a trip next year without going deeper into debt.

6. Wedding Debt

Numerous people in the discussion chide those who spend tens of thousands of dollars in debt to have their dream wedding. Not only is that a wrong way to start a marriage, but it’s also wholly unnecessary. Opting for a small, simple ceremony and saving for the future is a better use of that money instead of a one-day celebration.

7. Paying for Extras First

When someone has enough money to buy designer clothes and get their hair and nails done every two weeks but can’t afford to pay their monthly rent, that’s a clear sign that their finances are not in order. Rent should be at the top of the list of bills to pay each month. Designer clothes, hair, and nails are nice extras but aren’t necessities.

8. Frequent Food Delivery

Having food delivered from a favorite restaurant is a convenience many people enjoy. It can also be expensive, primarily if those deliveries occur several times a week. It’s much cheaper to limit the number of restaurant deliveries and instead eat meals prepared at home. It’s incredible how much money can be saved by cooking at home.

9. Designer Handbags

For one contributor to the discussion, they find it baffling to spend thousands of dollars on a single handbag just because the logo on it is a status symbol. They write, “It doesn’t hold your phone and wallet any better than a moderately priced bag.” Besides, a designer bag is only a status symbol if you have money to put inside it.

10. Always Buying the Newest Thing

Companies are constantly updating their products, like cars and smartphones. No matter how new a car or smartphone is, the market will always have an updated model. And there will always be that person who’ll spend their last dime buying it just to say they had it first. Chasing every shiny new object is an easy way to stay broke.

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Originally Published on https://thefrugalexpat.com/

Steve Cummings Journalist, Traveler, and Personal Finance Enthusiast

Steve Cummings is a traveler, writer, and personal finance enthusiasts that has taken an adventure to leave his home country to travel and live around the world with his family. Through many years of learning he seeks to help those to save more and travel better. He has been featured in MSN, The Associate Press Wire, and various other content outlets with his writing and publications through his website The Frugal Expat. In the last six years, He has traveled to all seven continents, over 30 different countries, and has lived abroad learning and teaching others about good financial habits and travel hacks.

As an ex-English Teacher, he hopes to provide good tips and education on money and travel to help people think outside the box and achieve the impossible.