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Is It Ever Smart to Be Stupid With Money?

Is It Ever Smart to Be Stupid With Money?In the last couple of weeks, an interesting financial concept has made it’s way into my life. I’ve begun to wonder if it’s ever a good idea to be what some would perceive to be as stupid with money.

Before you slam your laptop shut, hear me out by reading the following example. The reason this has come up is because of a trend I’m seeing in my hometown of Miami among my millennial peers.

This post was written by Amanda Abella – a fabulous writer, speaker, and financial coach!

Is It Ever Smart to Be Stupid With Money?

While our local economic situation is a long story, here’s the short version: Rent is through the roof and millennials are still living at home as a result. We’re pretty sure this market is going to tank and rent will come down because Miami has a rich history of this, but we’re getting tired of waiting it out.

So, in essence, many of my fellow millennial Miamians are faced with a dilemma. Do we wait for the real estate market to tank? Or, do we take a risk with our money and suck it up? We’ve got jobs. We’ve got some savings. In theory, despite all the scary statistics, we might be able to pull it off.

As a financial writer who is pretty methodical about her money, I want to say “Wait it out.” As a 28-year-old who’s been living at home while she gets her business off the ground and is finally making some money, I want to take the risk of being what may be perceived as being stupid with money.

Money Isn’t Black and White

While financial experts will try to tell you what to do with your money, the reality is no one’s situation is the same. As much as people try, money isn’t black and white and there is no one-size-fits-all solution.

In fact, much of the overwhelm we feel with money management comes from the fact that not even the experts can agree on what to do! Experts have been saying for years to have about six months worth of emergency savings, but just last week I saw a piece published in TIME about how that’s a myth.

If the so-called experts don’t know what we need to do, how are we supposed to know?

It’s More Complicated Than Just Money

Many would argue that we could leave the city. Let’s be real though, Miami is a pretty cool place to live. If we’re willing to pay the price tag, then shouldn’t we just suck it up and figure it out? Also, while I’m not in this situation, many of my friends are tied to their jobs here.

That being said, this is about way more than money. It’s about freedom and independence. As much as we love our families, it’s time for us to leave. The real estate market just isn’t on our same schedule.

That’s where the question of whether or not you should be stupid with money comes into play. If you’re saving money, but compromising your happiness, is it worth it? The answer is usually a resounding no.

That’s why, while we need to give money the importance it deserves, we can’t make it more important than it actually is. We want to do what’s best for us, but sometimes in order to do what’s best we need to compromise our finances. For some of us who spend a lot of time in the world of finance, this is a difficult concept to grasp.

So, should you be stupid with money?

To be honest, I don’t have an answer for this one. I can’t have an answer because there isn’t one. All I know is I have some numbers to crunch and some decisions to make.

Did you ever do something stupid with money that ended up working out? Share in the comments below!

Battle of the Mind Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. I got really lucky and bought a house towards the peak of the housing crisis. I was lucky that my house never went under water but man oh man was it close. It’s now recovered and I’m up roughly 20% on what I paid for the house. However, unfortunately that’s equated to about a 2% return on my money. It’ not an ideal return but I’ve really enjoyed living where I do.

    • At least you were smart enough to hold onto it! I knew so many people that walked away from their homes during that stretch because they were worth less than when they bought them. Soooooo dumb. Congrats on sticking with it!

  2. While I certainly wouldn’t advise proactively being stupid or careless with money, I have to say that some of the most valuable lessons I have ever learnt have come in the wake of misjudged financial decisions. That was a great article in TIME, by the way!

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