Sunday, February 19, 2012

Bang Head Here "X"!!

Time for another rambling rant.  I just can't understand a persons need to spend money recklessly.  Without thought, without plan.  I'm not talking about the occassional "let's go to lunch" or "I'll have a coffee" type of splurg....I'm talking big things.  Like buying a car on a whim, or having elective surgery.  I'm not saying that you are wrong and if you want to get into debt to do it....well, that's your choice.  I'm saying I will never understand it. 

I know someone who is about to "unplug" their 401k (borrow from it) to do something that well, doesn't really need to be done.  Let me explain why this does not make sense.  First you are taking money out of your retirement, which means it is no longer there to earn money for you.  Then you are paying it back with interest, which means you are "paying" to borrow your own money and you are paying interest, which as a frugal person I will never understand.  If you are to "leave the company" for any reason, that money is due in full or it will be deemed an early retirement and you will be taxed and penalized as though you took your retirement out early....about 40%.  If you die, you survivors will owe the money or they will have the tax bill and penalties to pay. 

I was sitting at lunch the other day talking to a friend about saving money, about how I did not choose to spend money until I had it saved to pay cash.  Another person at the table got all disgusted with me and told me to "stop being so cheap!"  I wasn't shocked, I was sort of happy he noticed.  I let him know that I'm not cheap, I'm frugal....there is a difference!!  I will spend money when I have it.  When I have planned and saved and it does not harm the families finances in any way.  I will not pay interest to have something now that I can not afford.  Cheap people will not spend the money at all. 

I listen to people talking about how they can't pay their bills as they smoke their cigarettes and toss back a $4 beer.  I see people getting forclosure notices and they have a brand new car sitting in the driveway.  I see people living on Ramen Noodles, but buying lottery tickets everyday.  I can't help it, I can't understand it!! 

I have had people tell me the reason they buy stuff on credit or borrow to have things is because they "deserve it, they work for it".  Guess the way I look at it is you don't deserve it unless you have already worked for it, saved for it and can pay for it (other than a home mortgage - and I am trying to change that too). 

Yes, I know it is none of my business how and why you spend your money.  It does not concern me.  I do hear you talk and I do hear the sad tales, but I'm not saying anything anymore.  I have found very few people want advice, they just want sympathy.  Sorry, I don't play that game anymore.  If you can't help yourself, if you can't make it happen....I'm not sympathetic.    I will truly care when I see that you are really trying and that you are doing all you can.  There are still people like this out there!!

I just want a place to "bang my head" when I hear it. 

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