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Money in the News: When we are careless

Things are pretty quiet here in the mid-atlantic. Lots of fruit to be picked, lots of sunny lounging to be done. I’ve been freelancing on the side doing some HTML/CSS/Cross-browser work to bring in some extra cash.

If you have any stories you wouldn’t mind submitting on ways you’ve lost money, if you’ve known anyone that was scammed, or if you have a tip on how you saved money, please send it our way.

Here are some crazy Money Drain stories in the news lately.

National Post tells a story on a young girl who was texting while driving and got into an accident that cost $100,000 worth of damage. Though there are multiple “What was she thinking?” in this story.

The teen was allegedly texting, holding a pet cat and driving at a “high rate of speed” when she lost control and careened into a neighbour’s front yard — smashing through two parked cars, a boat and a house before coming to a stop.

Bargaineering.com posts a question about how you’ve made a big money mistake:

When I began earning money working from home, I didn’t think much about paying taxes. In the back of my mind, I knew I would have to pay taxes, but I didn’t understand the self-employment tax that had to be paid on top of my income taxes. Not that I planned for income taxes, either. I didn’t set any money aside to help pay my taxes, and I certainly didn’t pay quarterly taxes. Needless to say, things got kind of ugly — especially when I used a newly-liberated credit card to pay my taxes, instead of looking into options like the IRS installment plan.

Dave Ramsey on Twitter posted this tweet yesterday that made my jaw drop:

Lady has a $764 16% int. truck payment owing 20k, making 24k/yr. WOW. I will always have work to do.

$764% int. car payment with a 16% interest rate and only making 24k a year? That just hurts my insides.

In fact, using the Federal Debt Reserve Calculator that I mentioned in my Money Tip: Make Use of Free post, having a $20k debt with a 16% interest rate, making minimum payments of $400/month would put you at having this paid off in 44 years with over $38k worth of interest.

Okay, lets break up some of this bad news with some good news.

Wise Bread posts 21 Personal Finances Lessons from Harry potter:

1. Money Doesn’t Buy Happiness…
Some of the most miserable people in the book — the Malfoys — are the richest. And some of the poorest — the Weasleys — are the happiest.

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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