3 Financial Diseases That Can Give Your Savings Cancer
Gather round! It’s time for a mandatory health check-up – a financial health check-up. Believe it or not, the victim count of such diseases range in billions and yet they roam freely among us without getting detected. Fortunately, none of these diseases are contagious so you don’t need to start biting your nails fearing another Ebola-esque pandemic.
Here are the 3 major types of financial diseases to watch out for and help you identify the symptoms associated with them. Keep in mind that with a little bit of effort and perspective, all these ailments can be reversed and restore your financial health. So without further ado, here are the top 3 financial diseases you need to immunize yourself against:
Saving money is an admirable trait, but trying to outdo the money conservation strategy of the homeless man in your neighborhood is like betraying your own well-being. There is no reward for scraping pennies and compromising on basic necessities like food, shelter, and water.
People who belong to this category tend to view their purpose in life similar to how the survivors of a zombie apocalypse would look at theirs. They believe everyone is out to rip them off their hard-earned money and leave them with a severe case of buyer’s remorse.
Hence, their constant paranoia and mistrust leads to their own downfall as they fail to recognize the difference between smart spending and overspending. Super cheapskates are far less proactive in the investment world as they are constantly stuck in an analysis paralysis and fail to put the pedal to the metal on promising investment opportunities.
Some of them take their cheapskatery to the next level by refusing to follow through on essential medical check-ups or getting the right kind of insurance coverage. Unfortunately, they fail to understand the logic that the lack of preventative care will end up hammering their finances harder than that of others.
Their self-centric view extends to their professional life as well, and many of them look upon specialized education, outsourcing their work, or seeking expert consultation, as frivolous expenses. Instead, they lose time and multiple money-making opportunities by juggling too many things at one time.
I would like you to check your Facebook, Twitter, and Instagram feeds right now. Now, find the friend with the highest concentration of product purchases and selfies accompanied by a dearth of horrendous hashtags. Congratulations! You have found the type of person we’re referring to – the “show-off”.
With egos fueled by materialistic conquests, uncontrolled spending is the biggest demon these people will battle their entire lives. Unfortunately, getting through to such individuals is often the hardest because of how strongly they attach their identities with the things they own. Hunting for the coolest cars, branded designer wear, and the hottest gadgets is second nature to these people.
No one can deny the importance of pleasure from occasional indulgences, because not all of us are born with the Buddha gene. Mindless consumerism is a financial carcinogen and uncontrolled spending can destroy your financial future while you are out seeking instant gratification at every step of your life.
When you already have arduous financial obstacles like home loan repayments and fulfilling the minimum CPF sum requirement, extravagance is not your best ally unless you were born with a silver spoon.
A recent government report revealed that bankruptcy orders in Singapore rose sharply in 2013 and the household debt-to-income ratio was climbing to an unhealthy level as well. There is no cake for competing with the lifestyles of the rich and fabulous when you simply lack the financial resources to support it or the business acumen to achieve it.
Hipsters believe themselves to be the protagonists trolling the slaves of mindless consumerism and the corporate overlords who profit off them. Ironically, champions of this subculture are defined by consumerism as well. It’s just that their motivations are driven by their all-important goal of ‘sticking out’ instead of ‘fitting in’ like the folks they rebel against.
As consumers, they might be seen spending on outlandish clothing, hair styling products, overpriced chai lattes, unique gizmos, and miscellaneous vintage junk. Sometimes, they can even extend this attitude in their financial portfolio management style by experimenting with several new investment products and schemes that have not been reviewed by adequately qualified investors yet.
The hipster’s urge to stay ahead of the market and position himself as an undisputed leader of thought can come back to bite them when their choices underperform in the market due to miscalculated risk management.
Standing up for small businesses and fighting against monopolies is a noble endeavor, but hipsters are usually more interested in glamorizing their lifestyle by pursuing aggressive and risky bargains and investment opportunities.