I had a coworker who would continually surprise me with her bad decisions with money. She was 54 and had been through a divorce a few years prior that left her with nothing and she ended up filing for bankruptcy. She made around 45-50k. She had a 45+ minute commute each way and paid over $1100/month for rent in a nice suburb. There were much cheaper places to live near work but she was convinced that the entire city that our workplace was located in was a ghetto and she'd get shot if she lived here (this is nowhere near the truth). When she found out that HR automatically enrolls you in the 6% 401k + 6% match, she immediately had it switched to zero contribution because she needed that money in her paycheck. She was living paycheck to paycheck and would say "I need to start playing the lotto more" when things got scary. She didn't get all of her points for the work wellness plan her first year, so her insurance premiums went up $1,000 annually for the next year. She drove a Toyota Sonata that she was making high payments on, but would constantly wish she could drive a Lexus again. A couple of months before her car was paid off, she was in a car accident that totaled her car. What kind of car do you think she got next? A Lexus SUV, of course! (Used, at least.) Even though neither of us work at that place anymore, we occasionally meet up for lunch. First thing she asks me is if I've gotten a new car yet. Nope. I drive a 2002 Chevy Cavalier that is looking rather shabby these days, but it's saving me too much money right now to consider upgrading quite yet.