Most personal finance bloggers like to tell you what you should do with our finances, whether it’s spending less, earning more, investing wisely, or saving for a rainy day. While these methods are tried and true, they usually only help yourself and your family. There’s nothing wrong with that. However, a lot of people don’t realize personal finance can also affect the public or other people around them. For this reason, you should be very careful about what type of personal finance practices you’re involved in. You can potentially hurt yourself and others if you’re not wise about how you use money, whether it’s yours or someone else’s. Here are seven personal finance practices that bring bad karma and hurt others:
- Dining and dashing: I have never and will never do this. Dining and dashing is when someone goes out to eat, and instead of paying their bill, they leave, having had a free meal. I’ve seen in movies they make people who don’t have enough money wash the dishes. I don’t know if restaurants still do this, but I think it would be a totally acceptable consequence, don’t you? When you dine and dash, you give customers a bad reputation, you shortchange the waiter or waitress, the cook, and the restaurant owner. Meals have prices for a reason. If you can’t afford to eat at a certain restaurant, look for cheaper options.
- Borrow and default: Some people have bad credit because they borrow money and then don’t pay it back. Therefore, their loan defaults and goes into collections. Sure, it may be your credit that you’re messing up, but you’re also not paying back the lender. No matter how “rich” you may assume the person or institution is, invested money that doesn’t yield a return is still a loss. Be sure to work out a payment plan that works for everyone involved.
- Taking a job you got by lying: I’ve never done this either – lying on my resume. Have I thought about it? Sure. But it’s never happened. I’ve always feared being found out, and for good reason. Nowadays, there is an average of 7 people competing for every 1 job opening. That’s a lot of people! Many of those people are unemployed or underemployed. If you accept a job offer you got based on falsified information on your resume or during your interview, it will catch up to you. Maybe not immediately, but it will one day.
- Insurance fraud: Lying about something being stolen, broken, or non-functional then collecting benefits from an insurance company is known as insurance fraud. This happens more often than you think. People pretending to be disabled, people who intentionally get into car accidents, and people who claim they lost something in a natural disaster when in fact they didn’t have it are just a few of the scenarios. Don’t be greedy; be honest. If something truly did happen, provide accurate paperwork.
- Squatting: I’ve heard from a few people that rent is just as high as a mortgage, and I believe them. However, that is absolutely no excuse to be a squatter. A squatter is someone who stays somewhere rent free when they should definitely be paying rent. If you can’t afford a place to stay, see if you can work something out with the landlord, a family member or friend. People fail to realize that while rent may be additional income to some people, it is also an investment strategy or even sole income for others.
- Identity Theft: It’s October, meaning we’re getting closer to the holidays. Identity theft seems to spike around the holidays, as people are on the prowl to open up false accounts and charge up someone else’s credit cards, all in the name of gift giving. It’s not right! Even if you find someone’s credit card or debit card, do the right thing and return it to them or to their banking institution. Identity theft is a crime, and you won’t get far.
- Stealing: Probably one of the most obvious personal finance no-no’s, thou shalt not steal. While it’s one of the Ten Commandments, it’s also something you should avoid like the plague. Stealing, whether it’s money, information, or items, will bring you some of the worst karma. Yes, things may be bad, but it’s never bad enough to steal.
What are some other personal finance practices people should avoid?
I have never read an article like this before. I’m really glad someone put this out there. Too many people these days default on loans intentionally when they really can afford the payments. I beleive karma will get the best of them.
It’s not only the bad Karma that will get you, it’s the lack of integrity. Some people don’t value their honesty very highly and that’s a huge mistake. Most of the great opportunities in life come to those who are trustworthy. Sure, there are some people who lie and cheat to get ahead. But, they often lose out later when they are caught. People who have character and integrity build a lasting success and they never have to worry about being found out.
Fantastic post – we should really strive to be decent human beings in all aspects of life.
Excellent ideas to ponder. I am dealing with someone who borrowed from me and intentionally is defaulting. Instead of getting my money back I receive threats and insults. I’m so glad to have found this. I know karma will catch up with this individual.
Hello..yes I believe you know the feeling..of lending someone money and having to beg for it afterwards..I also gave my life savings to help someone..now I’m penniless…its been three years and still I hear all the lies that it’s coming…but it never comes…..the hatred I feel for this person…I’ve even cursed him that he loses double…..GOD forgive me…how I hate this man for taking advantage of me……..I would love to see him lose everything as my money is helping him live the high life…..all the best to you..
Interesting post. I’m crippled and have had several people steal from me, before I was disabled and afterward. It particularly galls me, to think of how hard I worked to achieve a decent life and now that I can no longer work, others take advantage of me–because they can. This is includes a thieving trash neighbor, handyman, gardener, even a vet. My life is very simple, I can’t afford to eat out, buy a new car (mine is 35yrs old, just well maintained), even fix up my house and my entire life revolves around struggling to get by. I truly hope and pray that these greedy slobs get their just due.