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  • Bob Brooks

Do You Lose Money Just to Avoid Being Embarrassed? posted this study that is pretty revealing about people and human nature. Here are the major "take-aways."

A recent study commissioned by personal finance comparison site and conducted by Pureprofile revealed that an estimated 104 million (46.8%) American adults have lost money in their lifetime to avoid embarrassment or save face.  The full report can be found HERE When asked why Americans lost money to save face, over half of those claimed they were too worried or embarrassed to ask for money owed by family and friends, with Americans failing to collect an estimated $14.3 billion.  Following in second place is being too embarrassed to return a faulty or unwanted item from a store, with an estimated $6.0 billion collectively.  Following in third, fourth and fifth place are:

  • Failing to collect an overcharge on a bill, with an estimated $4.1 billion collectively behind

  • Failing to resist group spending pressure (like splitting bills): losing an estimated $10.7 billion

  • Failing to ask for a raise they knew they deserved came in fifth, resulting in a total estimated loss of $30.3 billion

In terms of gender, men are more likely than women to leave money owed to them across the board.  I found this study very interesting. Just think about the crazy money banks make in overdraft fees. What else would be a good reason for signing up for overdraft protection other than to protect yourself from embarrassment? Why do people not attempt to collect money that is owed to them? Is it confrontation issues or that they don't want to project the image they need the money?

It comes down to the need to hide financial problems. Financial problems are easy to hide.  It is easy to put up a front of abundance. Think of it this way. When you look around at the image people lead you to believe is you really think that the majority of people have it together financially? What are your thoughts?  

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