Anyone else have a boss who is lousy with money?

[disneysteve]

I get so frustrated at work. I work in a small business and the owner, my boss, is absolutely lousy at managing money. Fortunately, I have no ownership interest in the business, though sometimes I wish I did so that I could have more say about how things are done.

This is a guy who is always buying stupid stuff, toys, etc., but at the same time bought our building 4 years ago and has yet to finish the remodeling of the 2nd floor so he can rent it out. In the process, he's losing a potential $1,500/month in rental income. He also bought a shore house a few years ago that he hardly ever uses but also doesn't rent out, so I'm sure that's costing him a bundle. Not a week goes by that we don't get a box from Amazon, usually with DVDs that he has ordered. He buys every movie he wants to see. He must own hundreds at this point. He leases a new car every 2 years. I've been with him 7 years and he is on his 4th car during that time (I'm still driving the same one I bought used in 1998). He graduated 4 years before me but is still repaying his student loans (I paid off mine over 2 years ago). He thinks nothing of buying a new computer when there is nothing wrong with the old one. Same for office furniture. One day he came in and had bought all new desk chairs (5 of them) for the office just because he got a "good deal" somewhere. Oh, he also hasn't paid his 2006 taxes yet and admitted today that the penalties are piling up by the minute.

Being someone who is frugal and very much in control of my finances, this just drives me nuts.

[QueenOphelia]

Some people just spend every penny they have without regard for the future. He also might make alot more than you realize and all the things he buys don't make a dent in his finances.

Then again, he might be a teetering on the financial edge of disaster.

[disneysteve]

Some people just spend every penny they have without regard for the future. He also might make alot more than you realize and all the things he buys don't make a dent in his finances.

He is the first type - spends every penny. Over the years, we've discussed finances numerous times pretty candidly. We've talked about retirement savings and he's said he has very little set aside. Like I said, he is still repaying student loans that totaled about the same as mine and he's been out 4 years longer than me. One big strike against him, besides his spending habits, is that he is divorced. His wife was very high maintenance and still costs him a fortune so I know that doesn't help, but overall he is his own worst enemy.

[SnoopyCool]

My husband's employer is like this. They're a small site excavation company (around 50 employees) and the owners are a married couple, with the wife the legal owner so that they can take advantage of all kinds of perks for being owned by a woman.

Anyway, she calls most of the shots, so they've moved into a HUGE office that they don't need. Ms. Owner leased all of her office help new Mercedes to drive (it was a great deal!). They take the entire company on a cruise every year during the holidays (looks like they can't afford to do it this year, though). They, themselves, just bought a huge house in a very influential neighborhood last year, and Mr. Owner told my husband that his mortgage is $10,000 per month! *gasp*

It makes my husband slightly worried because they're possibly putting the company at risk. He's also a little ticked because they've promised him a company truck for over a year now, while all the office staff got new cars to drive from home to work and back (DH needs the truck to haul stuff, drive from job to job, etc.). I just try to remind him to be happy with his situation and focus on the important things in life (but let's hope these people don't cause him to lose a job!). On a positive note, they have picked up several jobs and things are looking great for the time being.

[scfr]

I am my own boss, so no, it's not a problem.

But disneysteve, if I were in your shoes, I'd definitely keep my finger on the pulse of that guy's finances and have a backup plan just in case you need to jump ship.

[Hedy]

He is the first type - spends every penny. Over the years, we've discussed finances numerous times pretty candidly. We've talked about retirement savings and he's said he has very little set aside. Like I said, he is still repaying student loans that totaled about the same as mine and he's been out 4 years longer than me. One big strike against him, besides his spending habits, is that he is divorced. His wife was very high maintenance and still costs him a fortune so I know that doesn't help, but overall he is his own worst enemy.

Does this effect your paycheck at all? I'd just think someone who's that bad with personal money might have it spill over to his professional accounts.

[LuxLiving]

Have you had a frank conversation with him that you are worried about his future?

[Staceyy]

I'd start looking for a new job!

[disneysteve]

Does this effect your paycheck at all? I'd just think someone who's that bad with personal money might have it spill over to his professional accounts.

No. In 7 years, I've never seen any indication that it is threatening the business. He's been in practice for 18 years, most of those running his own place. He always puts the needs to the practice first. No bounced or late paychecks or anything like that. Nothing in collections, etc.

I'd start looking for a new job!

I really don't see a need for that. The job has been stable and I really don't see any reason to think that will change. If the situation ever arises that the practice is in trouble, I could always make him an offer to buy him out and hire him back as an employee. My finances are in very good shape and I'd have no trouble doing that.

On the plus side, he does own our office building and the shore house, both with a fair amount of equity, so he has those assets to fall back on. He is thinking about selling the shore home since he doesn't use it much and could put those proceeds toward firming up his other financial needs.

[LuxLiving]

I'd negotiate & offer to act as his contractor (for a fee) to get the 2nd story completed and to then obtain a small percentage of any future rents. Also to see if you can act as a broker to get him a renter for both office & his shore house. Again w/a flat fee for the arrangment and a percentage of rental fees!

[scfr]

I'd negotiate & offer to act as his contractor (for a fee) to get the 2nd story completed and to then obtain a small percentage of any future rents. Also to see if you can act as a broker to get him a renter for both office & his shore house. Again w/a flat fee for the arrangment and a percentage of rental fees!

What an incredible idea, Lux!!!

[DebbieL]

Steve, I can understand how it would drive a person nuts when someone is living the opposite of everything you believe in. It is amazing how many otherwise smart (and obviously he's no idiot if he's a doctor with his own practice) people are financially stupid. I honestly don't care how my boss handles his own finances. I know he carries thousands of dollars on his Visa that he could just pay and stop paying hundreds in interest every month, but it's not my problem. He makes great money and has other investments (and some I don't know about I'm sure). He also owns a little strip mall type thing with 6 or 7 retail renters. He isn't broke, and beyond that I really don't care how he runs his finances.

I am the bookkeeper, so I know all the office's bills are paid, every staff member is paid on time, etc. There is no danger to the business or my job. If I were advising him personally, I would tell him not to carry balances on his credit cards, but I'm not so I don't care. He also replaces his vehicle every 4 years or so (always with flashy new cars - he's in a Jag right now). He and his wife spend a lot on dining out and travel too. None of my business.

[moneybags]

I'm more worried about the relatives I have like this. They may come knocking on my door in the future while I am enjoying my well planned retirement.

[Broken Arrow]

Unfortunately, all of my bosses are like that. Except possibly for one, but I've never discussed money with him before, so I am not sure.

[librarylady]

Oh yes, I do have a boss who is lousy with money. Try the state of Texas. Ha!