Financial Vampires #4 & 5

Have you seen vampires lurking in the night?

The image of a bloodthirsty creature that shuns sunlight and drains the life force from its victims 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 the financial vampire.

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

The last two types of vampires we want to talk about are the trendy vampire and the emotional vampire. 

Keeping up with the Joneses is a common way people get into debt. The trendy vampire represents our desire to be socially accepted or envied. Outside influences like social media often pressure us to seek the perfect status update. This, in turn, can drive spending habits far past our financial limits, no matter what our net worth.  The result?  We spend and spend on things we don’t need — or even really want — and save very little for the goals we truly care about most. 

The emotional vampire attacks when we are feeling particularly anxious, stressed, worried, or angry.  During these times, we often seek comfort…and one of the quickest sources is retail therapy.  This is when people look for a distraction or mood boost through expensive purchases or deals that seem “too good to pass up.”  It’s an easy way to drive up our credit card bills or lock ourselves into contracts that quickly become deadweight. 

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.  Remember, a vampire can only enter when invited in, so be sure to keep your door shut against these foul creatures…this month and every month.    

Happy Halloween!