Wealth Banes: 3 Habits That Will Ruin Your Finances
When I was a little boy, my dad told me that I’ll never be poor if I avoid 3 habits. These three habits are drug use, gambling, and overspending. He calls them wealth banes. As an adult, I have to agree with him. If your life is mired in any of these, your finances will suffer. I am glad to say that I manage to avoid all three to some extent.
Photo by Adam Baker via Flickr
Overspending
It was harder to get into trouble with spending too much before credit cards became ubiquitous. Unfortunately, borrowing has been too easy over the past few decades and we are seeing all kind of problems as a result. These problems include:
- Unprecedented home foreclosure level
- House poor homeowners
- Widespread credit card debt problem
- Unfathomable amount of student loan debt
But you can’t blame this solely on credit card companies. There are also the consumer-oriented media and lack of personal finance education to blame. In general, we’ve forgotten the meaning of the word enough and are trying to live beyond our means.
Gambling
I do gamble for entertainment purpose, but I do have a strict $100 per day policy when I visit Atlantic City or Las Vegas. In this instance, I am not talking about casual gambling. I am talking about compulsive gamblers who believe that the next bet will be the winner, or that they will have to recoup their losses. Basically, I am talking about people who couldn’t resist the temptation to gamble. Those who crossed the line between entertainment and addiction.
Since the odds are stacked against them, most gamblers do lose money. And those who couldn’t resist the temptation invariably lose a lot more than money. Get help for your gambling addiction before it’s too late.
Alcohol and Drug Abuse
Last of the wealth banes is alcohol and drug abuse. Drugs and alcohol rob you of self-control. They create a bottomless pit that you cannot fill. And yes, they are costly in more ways than most people realize. An addiction can cost you money, harm your health and relationships, destroy your career, and even kill you.
Do you know anyone who is afflicted by these wealth banes? I know a few and it’s not fun when you have to deal with them — especially when they are someone you love.
Recommended articles:
All posts by Pinyo
Personal Finance Q&As
Savings, CDs, and Mortgage Rates
Credit Cards
Credit Score
- How To Get Free FICO Credit Score
- How To Get Free Credit Score from TransUnion
- How To Get Free Credit Score from Experian
- What is a Good Credit Score?
Featured Reviews
- CashCrate Review, Make Money By Completing Offers
- The Bill Manager Review, Free budgeting tool
- Streetread Review, Financial Headline News Aggregator
- FreeShipping.org Review, Free Shipping Coupons And Coupon Codes
- NetQuote Review, Free insurance quotes
Featured Articles
- Best Online Discount Brokers For Active Traders
- Best Investment Brokerage For Mutual Fund Investing
- Roth IRA Conversion 2010
- 401k Contribution Limits for 2010
- Traditional and Roth IRA Contribution Limits for 2010
- How To Save Money, Money Saving Ideas And Tips
Recent Articles
- You Need An Emergency Fund: Expect the Unexpected
- 5 Things That You Should Not Cheap Out On
- Budget Once, Spend (or Save) Twice!
- Are You Aware of the Most Common Credit Threats?
- How To Budget And Track Spending For Your Vacation
- How To Spend Less On Your Pets
- Learn from Santa: How to Save Money and Give Great Gifts
- BB&T Customer Service Nightmare and How to Avoid Overdraft Fees
- 5 Things That Are Killing Your Budget
- 10 Characteristics Necessary For Success (Mr. Rogers Style)
9 Comments. Please add yours!
Discuss. Share. Interact. Please leave a comment!
Comment Rules: Constructive criticism is welcomed. Please use your PERSONAL name or initials and not your business name or URL, as the latter comes off like spam and I'll most likely delete your comment. Have fun and thanks for adding to the conversation! Here's our comment policy and guidelines.
Important Notice:
The information found on Moolanomy is provided and intended for informational and entertainment purposes only and does not constitute financial, legal, or other advice of any kind. The information contained on this site is aimed at a general audience, and does not attempt to offer specific advice to your specific circumstances. If you are looking for professional advice, you should consult with an independent financial adviser.This site contains information about third party products and services, such as credit card offers, online banking, discount brokers, and credit score services. While we endeavor to ensure that the information presented on this site is accurate at the time of publication, any offers and rates shown on Moolanomy can and do change without notice. Visit the official site of the offer for up-to-date information.
For additional information, please review our Terms and Conditions.
Your Dad had some wise words – I think all three of those things are bad if you don’t keep them in moderation.
Great advice. I’ve never even been tempted by the allure of gambling and alcohol/drugs have no appeal to me either, though I do drink here and there.
Overspending? That’s MY problem in a nutshell.
Drinking leads to overspending & is closely linked to gambling.
Up until the end of 2008 I was drinking more than I should. I no longer drink at all. I never gambled, but I did overspend and I found that I overspent more while drinking.
Besides costing a lot of money directly, drinking also indirectly leads to bad financial decisions. When intoxicated all decision making abilities are affected, so it makes sense that avoiding intoxicating beverages will ultimately be a sound financial decision! I am speaking from experience.
Excellent points Pinyo.
I like your policy on gambling and although I barely ever am at a casino, try to have a similar limit. When setting the limits and having the will power to walk away you can have fun, the adrenaline rush and not go crazy.
Having riskier investments or being less diversified than you should ought be classified under the gambling rule….
Great advice!
Many of my coworkers are big overspenders– they are so over-extended right now it isn’t funny . . .
As for gambling, it sounds like you take my approach– a trip to a casino is entertainment that needs a budget. How long can I entertain myself on this $60 before it is gone?
Alcohol, like anything else needs to be consumed in moderation.
Unfortunately we live in a society where enough is never enough. From an early age children are bombarded with advertisements about things that they have to have. As they get older it never lets up, they are programmed to buy and buy no matter what their financial situation is.
While I don’t abuse alcohol, I sure do waste a lot of money each month.
As a matter of fact, I spent $60 last night and felt terrible the next day.
I’ve also seen the effects of drug abuse on some talented people – their lives are wasted.
As I am reading through this post again, I realize that all three of these habits are addictive. All three can give you a rush and a short-term feeling of exhilaration whose long-term consequences can be disastrous though.