Humorist Will Rogers often wrote about wasting money. He once said, “Too many people spend money to buy things they don’t want to impress people they don’t like.” And of course, that one-liner would be even funnier if it weren’t so true. Today, financial planner and teacher Rob West talks about that and other ways we spend money foolishly.
<ul><li>The Wall Street Journal recently polled a group of personal finance experts, authors, and even a Nobel Prize winning economist about the things people waste money on in their view.</li><li>One of the biggest money wasters is something they call “compensatory purchases.” That’s a fancy name for “keeping up with the Joneses.” And it’s anything you spend money on to make other people think you’re successful.</li><li>Compensatory purchases would include luxury goods and high end clothing with visible logos to indicate you have money and status.</li><li>Next, is buying too much house. One of the experts explained that peoples’ thinking hasn’t caught up with technology that enables us to live comfortably with less space.</li><li>Another big money waster is buying a new car and especially if you’re just trying to impress someone. You’ll have to work 2 to 3 months just to make the payments and insurance. A better option for many people is a dependable late-model vehicle with low mileage.</li><li>The next money waster is a touchy one for many parents. It’s spending money on adult children for things they should be paying for like keeping them on your car insurance and cell phone plan.</li><li>Also mentioned was over-scheduling younger children with too many expensive activities. Better to have the kids focus on one or maybe two things they really enjoy because the cost of extracurricular activities continues to rise.</li></ul>Here are some questions we answered from our callers on this program:
<ul><li>Once you retire, should you roll your 401K into an IRA?</li><li>I am 59 years old. My husband passed. He had insurance and I think I could join that health insurance group. What are my options?</li><li>I used to listen to Larry Burkett. I remember him telling listeners not to buy brand new cars unless they could get an employee discount. My husband used to work for a car dealership. What is your opinion on this?</li><li>I have 3 credit cards. Should I cancel them all at once, or individually?</li><li>My son has a double scholarship. One is paying for school and the other is going into his bank account. What should we do with this money?</li></ul>Ask your questions at (800) 525-7000 or email them at <a href="mailto:questions@moneywise.org">questions@moneywise.org</a>. Visit our website at <a href="http://moneywise.org/">moneywise.org</a> where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Humorist Will Rogers often wrote about wasting money saying, “Too many people spend money to buy things they don’t want to impress people  they don’t like.”  Rob West talks about wasting money on this edition of MoneyWise Live.

The Experts on Wasting Money

FaithFi | Sep 9, 2020

Show Notes

Where Faith Meets Finance

You May Also Like