Everyone has pet peeves, those little things that happen that aren’t big enough to require much effort, but come up to annoy you again and again when you least expect it. We all have pet peeves and there’s no denying that.
But what about financial pet peeves? Can you think of any that you might have? I know that I have a few and I’d like to share them with you. I’ll also discuss how you can deal with them and not let them ruin your day or even your entire week.
Here are a few financial pet peeves and how to deal with them:
Greedy banks with tons of fees – I understand that banks help the flow of commerce and make the exchange of goods and services easier. I know they’re instrumental to our economic system. But I hate the fact that these “middlemen” seem to get greedier and greedier each day. I dislike greedy banks that have a ton of fees because they caused the global recession, they want to profit from your tax dollars, and they exploit their customers. Look for a bank that doesn’t charge outrageous fees like an overdraft fee, checking fee, account fee, minimum account balance fee, etc. There are banks out there with very minimal fees and they won’t make you jump through hoops to open an account either. Go with those types of banks. You can also check out a Credit Union if you’re not familiar with them. They have many nice benefits and usually treat their members very well. Here’s a great article about 7 ways Credit Unions are better than banks: http://money.usnews.com/money/blogs/my-money/2011/11/14/7-ways-credit-unions-are-better-than-banks
Following bubbles and trends in the market – The biggest mistake one can make is following bubbles and trends with their investments moving forward. The technology industry is a prime example of a bubble that rewarded many of the industry leaders today. Mark Cuban, one of the few that sold his technology company at the top of this bubble, generated billions of dollars during this time by properly following the market and capitalizing on opportunities. Despite this success story, the average person investing in the market today doesn’t have the technical information available to them in order to properly gauge what the market is doing.
Instead of following trends, invest in markets and companies that you have deep rooted knowledge of at a technical level. Warren Buffett, one of the greatest investors of our time, says that he invests in companies that he knows won’t go away overnight. By following this investment strategy, we can expect long-term returns and steady progression as the years go by. Putting our resources into trends and bubbles is often compared to gambling in a larger scope with more downside involved. Markets such as the food industry, transportation, and real estate markets will always be required to live as a species. When we focus on these sectors we can expect returns on a grand scale. It’s a good idea to steer clear of bubbles and trends when investing your hard earned money.
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Emotional investing and spending – Using our emotions within our finances is one of the biggest pet peeves that experts within the financial market despise. Emotions can lead to impulsive behavior which can negatively impact our finances in a short period of time. Avoid using the internal chatter as a meter in which to invest with when making a decision as to where to place your capital or resources. Here are 7 tips or tricks to help curb those impulse buys: https://www.advantageccs.org/blog/impulse-buying
Instead, follow a system of investing that has shown returns for an extended period of time. The majority of failures within investing and financial practices stem from improper emotions controlling your actions at volatile times. When we see great success with one strategy as opposed to another, keep the nerves calm and stay on course with the strategy that was previously built.
Financing stuff you can’t afford – While financing can be a great way to make certain purchases that you cannot afford at the current time, it debilitates you in the long run. One of the ways that this pet peeve manifests is by financing automobiles that don’t fit within the budget of the buyer at the current time. Many individuals and families purchase brand new cars without putting in much thought as to what their budget can permit. Instead, we should always consult with experts and seek used cars before financing a new vehicle and signing a 5-year contract that will lock you down with payments we can barely afford.
Similarly, financing small purchases such as furniture and interior decorations can lead to a laundry list of problems. Many people feel peer pressured in the showroom by sales people and the intensity of the scenario presented at them. Their emotions take them to what their home could look like if only they make these small purchases. They will rationalize this purchase by negating the impact that the bill will have on their overall finances. Before they know it, the purchase is made and the debt has been accumulated for the individual to pay. Over time, this person will feel the bills piling up and their finances dwindling from poor decision making.
Gambling all of your money away – I’ve never been big on gambling. Not in my life, in my career, or at casinos. Some of my friends love to gamble and some have even won a few times. I just don’t see the appeal in it. With every pull of that slot handle or roll of the dice, I think “This money could have gone towards our emergency savings or my child’s college fund”. I’ve won a few times, so it’s not about me never winning. I just think there are better ways to use my hard earned money than to gamble it away. This is actually one of my biggest financial pet peeves. People say gambling is fun, but imagine taking a vacation or trip with that money, wouldn’t that be even more fun?
Organic food prices – Lastly, it’s important to note the severity that purchasing expensive food can play on one’s overall finances. Individuals often grab food from the shelves that looks appealing to the eye without paying attention to the price tag. By following this method of shopping, the person puts their finances at risk. Organic food is a great example because the trend of today is to only eat organic, but that comes with a hefty price tag. Shop wisely when purchasing organic foods. See if there are better brands or alternatives that are still healthy but cost less money.
Conclusion – Pet peeves exist for a reason. They are reminders of things we can’t stand, for one reason or another. Some people say they even make us a better person and more compassionate, caring, and understanding. I just think they exist to bring more “spice” into one’s life and make it more interesting! 😉
But whatever the reason, moving forward it’s recommended that a person deal with them head on and don’t ignore them. Sometimes even venting to someone about what’s going on can help relieve the stress and tension brought on by that particular pet peeve. If being in debt is your biggest financial pet peeve, give Advantage CCS a call today. It’s free and confidential. You can reach us at 1-866-699-2227 or by visiting us at www.advantageccs.org/contact-us