I’m looking for examples of individuals (not institutions like govenments) blowing money. I’m going to give a presentation on financial matters and am looking for examples to use as demonstrations of wasted money and the effects they have on people’s financial well being.
One example I have as an example is I guy I knew who was leasing a truck. The monthly payment was $650. How this got very wasteful was that he wouldn’t drive it many places. He wouldn’t drive it to work or to anywhere he’d have to park it in a parking lot because he was afraid of “door dings.” So he had to buy another car to drive!
He eventually returned it so that he could lease another truck (so that the color would better match his new $30,000 boat - purchased entirely on credit with rates close to credit card rates). He had put very few miles on it. I calculated the amount he had paid per mile for the truck, not including fuel. It may have been around $1.65?
Whatever the $/mile rate was, I calculated that if he’d purchased a car, kept it for 10 years, put 100,000 miles on it, got essentially nothing for resale value, and had spent as much per mile, he could have bought a car woth $165,000.
When I showed him the calculation, his face lost color.
Anyone have other good examples?