My wife's family has a long history of pace punching financial moves. She is actually an outlier now as the only one who is making sound decisions and financial progress. I won't go into all of the stories (way too many examples), but I'll share some of the highlights below:
- MIL: "we can't do auto-bill pay because FIL is a realtor, and we don't know when his commissions will come (every bill is practically always past due with added penalty fees)"
- MIL: FIL sadly passed away unexpectedly a few years ago, and she received about $200k in insurance payouts. There is $23k left in the account today. Nothing to show for it. No idea where it all went, but she doesn't work, so every day has to be a net outflow to fill the loss of FIL.
- BIL #1: "Real estate here (mid-atlantic metro ex-burbs) is too expensive, I think we might move to FL in the next couple years because it's warmer and cheaper. If I ever do buy a place here, it will be a rental property... my landlord makes a killing off of the triplex that we rent." ($0 saved living paycheck to paycheck)
- Uncle #1 (approx 52 y/o) who thinks he's rich: "Love del friscos, they treat me like a king there, I do like $50k / yr with them in business deals and family meals (fancy executive you ask? nope - mortgage broker / snake oil salesman)."
- Uncle #1: "Yeah we're killing it this year, going to open up a couple new offices in FL, I go to the Ritz all the time in Orlando and they always hook me up, love it there! - Shows pic of fancy rental car, disney, the whole vacation works -
- Uncle #1: "Just got [his daughter] new wheels, wife got the new Lincoln Aviator, and I just traded in my 1 y/o BMW for the new fancy BMW... tight!" - proceeds to show me how he can steer it out of the garage with a fob key - ... Uncle #1 foreclosed on his beach house, and had to downsize his primary in 2008... now has $200k in car loans, and talking about a vacation house in FL! lovely!
- Uncle #2: Restaurant owner banking on his restaurant profits to retire off of. He did nothing to change his business during 2020, instead he just dug into his savings to pay the lease each month, and closed. During the holidays he was so stressed out that he pulled a gun on a guy who cut him off at a stop light. Proceeds to blame everything on politics for why he's close to broke. Fast forward to this spring after he re-opened... rolls up to the house in his brand new $90k truck, with his son right behind him in brand new muscle car that he bought for him. Classic.
- Aunt #1: You should really look into this boxing subscription, it's like peloton for boxing! The bag is $1,500 and the classes are like $40/month.
- Uncle #3 - has a very profitable business, and can afford all of his fancy spending... but the waste is cringe worthy. Has about 10 vehicles parked in his driveway, and is currently building a new house that is about 8,000 square feet (mansion).
- Cousin #1: We need a new car, I hate my Honda Pilot (huge pricey SUV). Her husband was about to buy a brand new Yukon, but the wife nixed it because it's not big enough. Fast forward a few weeks... "I love my new Yukon XL (or something like that that's even bigger), the kids love the TVs in the back. She has 2 kids.
- BIL #2: 25 y/o, asking me for advice on investing, personal finance, etc... wow good for him heading down the right path and seeking advice at such a young age! I got him set up with a retirement account and contributions, and then a brokerage account for money he makes on his side hustles. After a few months, he makes a couple thousand dollars in appreciation (the post-covid boom). I ask him how it's going, and he said he emptied out his accounts to take profits, so he could add tinted windows, chrome wheels, and a new spoiler to the new Jeep that he just bought. FACE PUNCH
I honestly don't know how my wife escaped this toxic family spending dynamic.
Cheers to you all for keeping me sane through the years!