Normally I write positive articles about great ways you can save money by making wise choices. Not today. In this week’s article I am calling fools out. I searched twitter for bad ideas on money, and now it’s time to make fun of them.
A good idea with a major flaw
I know of a fellow who drives for Uber in his great big pickup truck. He has a very nice 4 door Subaru sedan that would be great for hauling around people, but instead he drives around his huge pickup which is more efficient at hauling hay bales than people.
Now driving for Uber to make a few extra dollars on the side is a great idea, and I even do it myself from time to time. I wrote an article about it and determined that I make about $15/ hour all things considered. But I drive a Prius, and driving a pickup truck changes the economics completely. I figured out the driving cost of a new pickup using the ABC’s mileage calculator, and it isn’t pretty.
Rerunning the figures I used in my Uber article, instead of making about $15/hour, I only would have made $8/hour if I was driving a pickup. Profit= Income- Expenses, folks. You have to think about both halves of that equation.
Don’t let your credit union trick you
This tweet is from a credit union with a program similar to many other credit unions where they try to trick you into not making a payment on your loan for a month so you can have a little extra money for the holidays. Bad idea.
I wrote a full article about how much extra this skipped payment will cost you that you can read here. For those of you that don’t want to read the article, skipping a payment on an average car loan every year can cost you an extra $400 over the life of the loan, and increase your payoff time by 7 months.
The worst idea you will see today
Man, I feel bad for this guy. He sure is proud of his bad idea. Let’s assume this guy is with Verizon and uses 1/2 G of data every month, which is fairly average. Over the 2 years of his contract, he will be paying $1,200 for that $.99 cent phone. This doesn’t include fees, so it will actually be quite a bit more than that.
As for the people who pay full price for their phone, they are doing much better than this guy. Lets say I pay the full $150 for the Moto G from Republic Wireless, and use the same 1/2 G of data every month. With Republic Wireless, I am going to spend a total of $570 over the next two years. There will be a little bit of fees on top of that, but much less than with a contract carrier. My latest article on RW plans can be found here.
So this poor dumbass is paying an extra $630 plus fees more than the smart people he feels so bad for. Contract phone plans are just about the worst choice you can make as a consumer. Go prepaid.