You’re Not the Only Affected By Your Poor Money Decisions

One of the things that can be difficult to understand is that poor money decisions you make don’t just affect you. You may say that you’re only hurting yourself, but your poor money decisions can affect those around you as well. And in ways you might not have anticipated.

Poor money decisions and the future

Your poor money decisions now can affect others in the future. When I was in college, I maxed out more than one credit card. I thought it didn’t matter, since I was young and single. My debt only affected me. Then I got married. My credit card debt suddenly affected my husband as well. We had to make credit card payments — something that took away from our ability to use our money for other things.

Poor credit habits can lead to a low credit score that can limit your ability to get a good rate on a car loan or qualify for a mortgage. This can affect the rest of your family as you miss out on opportunities to improve your living conditions, or save money on financing costs.

If your decisions have been extremely poor, friends and relatives may put their own finances at risk to help you. Your parents, siblings or good friends might sacrifice their own wants in order to help you improve your strained finances.

Emotional strain due to poor money decisions

Your poor money decisions are about more than money, though. If your decisions put you in a difficult financial situation, your emotions can be affected. Many people become anxious and stressed because of their finances. Anxious and stressed people snap at their children and fight with their spouses. Your children might not feel secure in such an environment. And, of course, your marriage could dissolve as a result of financial difficulties. This can be compounded if you know that this is your fault, leading to feelings of depression that can affect those around you.

Friends and other relatives may also be affected by your worries about money. Those who care about you can be hurt by things you say or do when you are stressed out because of your situation. Your reaction to money troubles brought on by poor decisions can have ripples that spread through your entire social circle.

Bottom Line

Few of us live in a social vacuum. We have relatives and friends. Many of us even have spouses and children. Even our pets can be affected by our moods. This means that the things you do with money can move beyond the immediate area of your person. The consequences of the decisions you make now can affect the future, and they can affect several other people. You might not worry too much about yourself when it comes to the consequences associated with poor money choices, but you should consider what it might do to others.

Miranda Marquit is a professional blogger. She specializes in writing about personal finance for a variety of blogs, including Personal Dividends and Credit Score Blog.

Image by Dawn Ashley

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2 People have left comments on this post

» Kevin @ Thousandaire.comNo Gravatar said: { Feb 2, 2011 - 08:02:39 }

The only people I’d ever really consider worrying about would be my kids. If my wife had a problem with how I was spending, then we’d need to work that out together. She has input on that. The kids, on the other hand, have no input into how this affects them. I think they deserve to live in a stress free household.

Jesse MichelsenNo Gravatar Reply:

As cliche as it sounds, when I first had kids it changed everything. I realized I was thinking differently about things I did and who I associated with. As they have gotten older, we get them involved with certain things so they know what we are doing and how we are managing money (my oldest is 4, so we show her the basics) and later on they will have even more input, but I’ll make sure they input is never monetary.

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