I was an idiot with money not so long ago and far away.

At the root of all this was my enabling behaviour. I took care of my ex’s money needs trying to “help” him before taking care of my own.

Before I remembered that 6th grade math is VALUABLE.

I had to get a PhD
in D.U.M.B

as Dave Ramsey would say.

I borrowed about $10,000 on my 401k in my 30’s because I wanted to pay off credit cards, student loans or something dumb.

UNLESS YOU ARE FACING BANKRUPTCY AND CANNOT GET ANY OTHER LOAN,

DO NOT DO THIS!!!

Here’s what happens:

Your $ stops earning 12% or more in the market.

If I had been let go at that time, the company could have called that loan in 60 DAYS!!!

If you don’t pay back the $10,000 in 60 days, bad things happen:

Now you owe $11,000 with the 10% penalty FROM the IRS

Plus your tax rate.
Maybe 30%

Now you owe
$14,000

Isn’t THAT fun?

You could go TO JAIL if you don’t pay.

Another way to think of this:

“Would you borrow $10,000 at 40% interest to pay off something?”

NO

THAT IS STUPID.

My life IS a WARNING to others.

DO NOT DO THIS.

EVER EVER EVER!!!