Financial Vampires #3

Have you seen vampires lurking in the night?

The image of a bloodthirsty creature that evades sunlight and drains its victims’ life force probably came to mind.

Thankfully, these vampires are entirely fictional, so there’s no real threat. However, there’s another type of vampire that is very real – and it’ll sink its teeth into your funds.

We are talking about financial vampires.

What is a financial vampire? The term refers to an individual or habit that gradually drains your financial resources.

One type of vampire is the mini vampire. 

When we use credit cards but consistently pay only the minimum each month, we become prey to this creature. People choose to make only minimum payments for many reasons, but for most, this vampire represents delaying immediate pain, only to cause greater pain later.  People often end up paying a higher interest rates, and the payment terms can feel truly “immortal,” adding years to the payoff, eating into savings, and reducing your ability to invest for retirement.

Financial vampires come in many forms and recognizing them can help you transform your spending habits. Reviewing your expenses regularly, tracking your spending, and keeping any unnecessary spending in check can help you stay on budget…and ward off vampires better than even the sharpest stake. 

Happy Halloween!