I know why people are always broke

[FrancisABoyd]

I am in complete agreement, I've fallen victim to the "need a faster computer" or "bigger tv" mind-set even though my existing units were more than adequate. At least I'm paying cash for it and not spending the rest of the year trying to get out of debt!

[snafu]

Where do all these folks find the time to stroll around the mall looking for stuff to buy? Are they the same guys/gals who rent storage units to hold all the stuff they don't use, don't need? Are they buying for self esteem or to fill a hole in their heart? Do they think they are building equity in their home by installing granite counters in a house they don't plan to sell or can't sell due to the economy in their district? Has the education system let them down so far that they can't tell a well prepared pitch written and tested through focus groups is just so much bumph?

Our GP goes ballistic when his patients ask for well advertised drugs based on their self diagnosis. When you hear all the contra facts in the ad, why would you buy danger? Unless you're in a danger zone, you don't need waterless, anti bacterial cleaners, which have played a part in resistant bacteria and Flesh Eating disease.

[happygirl]

It's not JUST the shopping though, it's the lack of concern regarding what the shopping does to their budget long term. I wonder how many people would still recklessly shop if they knew they wouldn't be able to pay off what they just spent for six, eight, or twelve months. I also wonder, if any of these individuals spent any time considering how much money they will need for retirement, would they still shop compulsively. But this always returns to being educated...and most people aren't in the personal finance arena. I think shopping is a symptom for the real problem, lack of education.

I think some people think the ability to make the minimum payment means they can afford something. I don't know that they think it through any further than that, and I wouldn't be surprised if some sales people encourage this kind of thinking.

[disneysteve]

I think some people think the ability to make the minimum payment means they can afford something. I don't know that they think it through any further than that, and I wouldn't be surprised if some sales people encourage this kind of thinking.

Stores absolutely encourage this. Have you ever watched a car ad on TV? "Only $199/month." They don't say how much the car costs. They only say what the payment will be. Sometimes when you walk into the dealer, they do the same thing. They actually ask how much you want your payment to be. They don't ask how much you were looking to spend.

Furniture stores do the same. No interest, no payments until 2015. That's the sales pitch. They don't focus on the cost of the merchandise. They focus on the "great" financing terms.

And you are totally right that many people fall into the same trap. They look at how the monthly payment will fit into their budget rather than how the purchase itself fits. They walk into the store planning to finance the purchase. That's where the mistake gets made.

[cschin4]

Our GP goes ballistic when his patients ask for well advertised drugs based on their self diagnosis.

Well, that is a bit excessive. There is nothing wrong with taking responsibility for one's health and inquiring into different things. And, it is my body, i would like to discuss and concur with the doctor about what i take or not and have some say in it. I am not just some sheep.

[disneysteve]

Our GP goes ballistic when his patients ask for well advertised drugs based on their self diagnosis.

Well, that is a bit excessive. There is nothing wrong with taking responsibility for one's health and inquiring into different things. And, it is my body, i would like to discuss and concur with the doctor about what i take or not and have some say in it. I am not just some sheep.

As a physician myself, I can tell you that what snafu describes is far more common than what you are saying, cschin4. There is a HUGE difference between going to your doctor and saying you heard an ad for a drug for condition xyz and you were wondering if it might be appropriate for you and going to your doctor and saying, "I did a survey in Women's Day magazine and I have fibromyalgia and need you to write me a prescription for Savella."

I have actually had patients come in and request a specific drug by name and when I asked them why, they couldn't even tell me what the drug was for. All they knew was that they had seen the commercial and liked it so they wanted the drug. It is really scary.

Direct to consumer advertising (the industry term for those drug ads) puts the doctor in a very defensive position. Rather than examining and diagnosing a patient and recommending therapies, the doctor is stuck debating with a patient why the drug they saw during the halftime commercial break isn't appropriate for them. It is a colossal waste of time and money that does very little if anything to improve patient care. And sometimes it backfires entirely. I've had numerous times when I recommended a particular medication only to have the patient refuse to take it because of something said in the legal schpiel at the end of the commercial.

[cschin4]

I have actually had patients come in and request a specific drug by name and when I asked them why, they couldn't even tell me what the drug was for. All they knew was that they had seen the commercial and liked it so they wanted the drug. It is really scary.


So what? If it is an appropriate indication then you discuss the appropriateness of it with the patient, the indications and benefits and risks and then decide together. No patient can make you give them something you do not feel is indicated. And, that decision is on you whether the patient likes it or not. But, if they have a condition they beleived would be helped, what is wrong with broaching the subject and letting them give it a try. Again, i presume you would not give if contraindicated.
But, the onus is on the doctor, not the patient, the doctor has the responsiblilty to make the decision. The doctor does not have the luxury to complain about the patient whining, bullying, or whatever. Just say no if you don't want to prescibe it, that is up to you and you alone.

[couchrobt]

I have to agree to that. Shopping is a man's worst nightmare next to house-bills! That is what breaks the monthly budget. If it is a scheduled shopping then it is fine, but worry more about the impulse buys. That's the cracker. I know.

[snafu]

cschin4: Perhaps I didn't word it well or make my point as I was railing about carefully crafted commercials and print advertising. Now direct to consumer ads are leading people to desire prescription drugs that are not appropriate for them ...better described by DS.

[PatMil]

Aren't people broke because they are greedy and stupid? To be conned by TV and so called "savings" even as you spend is a pretty pathetic excuse!

We need to be realistic and not ransom our future for some immediate gratification!!

[disneysteve]

Now direct to consumer ads are leading people to desire prescription drugs that are not appropriate for them

Not only do the commercials make people want drugs that aren't appropriate, they make people want drugs that may be appropriate but are 100 times more expensive than other options. The problem then becomes that the doctor is stuck trying to justify practicing cost-effective medicine but the patient isn't the least bit interested in that since they don't pay for the medicine. Their insurance pays for it. To them, it is free (or a small copay). That is a definite part of what is wrong with healthcare in this country.

The doctor ends up in a very difficult situation. If a patient requests a particular product and the doctor gives them something else and anything goes wrong - side effect, allergic reaction, bad outcome, etc. - the doctor is held liable. So in the real world, most times we will give the patient what they asked for even if we know there is a better, more cost-effective choice. I'll offer other options, but thanks to the wonders of TV, the patient usually comes in with their mind already made up and nothing I say will change their mind. Plus, thanks to the placebo effect, if the patient doesn't get what they wanted, I can count on a call back a few days later that the new medicine isn't working or has some other problem.

[DKAS]

Absolutely agree with you Steve. Your discovery may seem obvious but is ignored by many. I've done some mindless spending for new gadgets in college days and it takes a lot of self-education to get rid of the habit so I try not to look down on people who do it. Rather, I do my bit to educate them about how much their spending habits could cost them.
On a side note, I'm in a middle of a frugal experiment of not buying any clothing for a year and suprisingly it has not been difficult at all except an occasional temptation from so called "sales".

[jerrycates]

SHOPPING always craps up the budget. The reason is why do some people just cannot do without it. Well... women are! lol

[smoothsailingfs]

I agree...I think spending more than you make (the use of credit), not having a budget (intent with your money), and shopping is why we are broke. I have never been a shopper (just to go to the mall and see what we can find), but I know a lot of people do. Which, isn't necessarily a bad thing...you can end up getting a lof these items at a huge discount when they have a garage sale.

[KennySoward]

Very astute, sir. People definitely have a lot of spending control problems...and I did go ahead and write a book about it...hah!

I actually have an amazing story. My girlfriend and I went to a casino for her friend's birthday. I'd never been to the casino, but was curious (since I was there) to try and figure out how these folks think.

While having dinner before hand, one lady in the group was going off about how to pick and choose your slot machine, how many lines to play and how much to bet. I was fascinated. I asked her how much she gambled and whether or not she'd won more than she'd lost. Admittedly, she did not think she was in the green by any means. And then she said something amazing.

"One month we were low on bills, so I thought it would be a good idea to hit the casino." I just about fell out of my chair.

BTW...if you watch the show Hard Core Pawn...it is set in Detroit near the casinos...and you will be amazed how many people come into the store several times a day pawning things to go back and gamble.