Today I read this unusual, honest story about how a financial advisor lost his home in the US.
The story gives us a good insight into how questionable banking practices actually affect individual families. Though obviously a bit embarrassed by his poor planning, the author’s account of the whole story gives me a better idea of how the whole recession began and how it impacted all kinds of people, even those well versed in financial planning can fall into trouble.
There are many stories these days of people who lost their financial bearings during the housing boom and the crisis that followed, but my story is a bit different from most.
I’m a financial adviser. I get paid to help people make smart financial choices, and I speak and write about personal finance issues for this publication and others.
The thing that few people know, though, is that I learned a lot of this from experience. I made a bunch of mistakes, the very same ones that I now go around warning people to avoid.
So this is the story of how I lost my home, the profound ethical questions that arose along the way, and what my wife and I learned from the mistakes that led us to that point.
While the author naturally points to the importance of making wise decisions regarding debt and expectations, another lesson is that oversight of the financial sector is important both for banks and their customers.