Things I Learned by Watching Daytime Courtroom TV

I admit it…I’m addicted to afternoon Judge shows. There is something fascinating about watching ordinary people work out their differences in front of millions of people. Fortunately, all those hours of couch surfing I’ve logged while watching these tales of woe has actually helped me in my daily life. I’ve developed some financial street smarts that I’d like to pass on to you.

The biggest rule of all is – GET IT IN WRITING. Contracts are written down to protect all parties involved in a transaction. They spell out the benefits and responsibilities on both sides, so there is little chance for a misunderstanding to develop. Though oral contracts are usually binding, do you know what they call people who enter into them? LITIGANTS.

If you enter into a contract, read it BEFORE you sign it. You will be held to the terms you agreed upon, and everyone, including a judge, will assume you’ve read and understood what you signed. If you don’t agree on a term, or you don’t understand what you are signing, STOP. Get clarification before you move forward.

Get a receipt. Don’t let money pass from one until the other hand has a receipt in it! Something funny happens in a courtroom. Cash transactions made without a receipt can cause “catastrophic temporary memory loss,” which could lead to you paying double just because you can’t prove you’ve already paid.

If you lend money to someone you care about, you would be wise to treat it as a gift, unless you’re ready, willing and able to lose the relationship. That also means it is unwise to lend money you can’t afford to get back in a timely manner. You don’t want to feel uncomfortable when Cousin Larry comes to the family barbeque this summer!

Don’t co-sign for someone who can’t get credit on their own, unless you are willing to pay for the whole thing. Odds are, the person asking for your help is either a bad risk, or has not proven that they are a good risk yet. Your credit score is on the line, and you are agreeing to be fully responsible for the agreement. This mistake can cost you thousands of dollars over many years, and a bad credit score is a difficult thing to repair.

Look before you leap! Take a used car to a mechanic, have a potential home inspected, and take dated pictures of valuable things when you lend, lease, or buy them.

Pick roommates carefully. It is not enough to like a person. Keep in mind that you are entering into a business relationship with them, and both parties should be fully prepared to act accordingly.

Good fences make good neighbors—especially when you own a dog! If your dog gets out and injures someone, you could have to pay for their medical bills, and there could be bad feelings between you and your neighbors.

Accidents happen, so keep your insurance current. Schedule periodic checkups with your insurance agent to make sure you are properly covered.

If something sounds too good to be true, it probably is. Do your homework before you invest your money or respond to internet pitches.

Finally, if you must go to court, bring proof of what you are going to tell the judge with you. “Proof” includes signed contracts, receipts, pictures, police reports and witnesses.

A wise person learns from other people’s mistakes. Care enough about your financial well being by following these common sense practices, and you won’t have to learn through your own tale of woe.