We all have pets although they might not take the form an actual furry animal. You’ve might have a financial pet that you feed and keep in the house.
I bet you’ve even taught him a few tricks so that he’d be housebroken. You might even keep him hidden from others, so you don’t have to explain why you still have that old pet around.
- Credit Card Puppy– For the majority of us, credit cards have gotten us into trouble and we don’t want anything to do with them. You might still be keeping your credit card around because he’s just so cute. Plus you get free airline miles, cash back, and an assortment of freebies. Did you know you’re probably spending more per purchase than the average debit card user and cash only spender? You’re also just one late payement away from a 26% APR. Perhaps it’s time put the pooch up for adoption?
- Extra Insurance Duck– Do you take out extra insurance (beyond your life and health) for just in cases occurrences you fear most? Most likely your health insurance will cover it or a small rider on your current life insurance would cover that fear. That duck is costing you money each month, time to let if fly south for winter.
- Cool Car Cat- You just love to drive a cool car, even if it isn’t the best financial decision. That fat cat is eating your retirement especially if you are leasing. According to Consumer Reports leasing is the most expensive way to operate a vehicle.
- School Loan Elephant- Those school loans are big eh? The elephant is like a member of the family. I know what you’re thinking, “I’ll keep him around a bit, he’s useful and it’s only 4% interest. I’ll use the money I would have paid towards my school loan and invest it and get 8%…that’s a 4% return!” Take a look at the mice (interest and risk) and you’ll be scared Dumbo into paying off that pachyderm. One. Bite. At. A. Time.
Photo Credit Durindarda (Creative Commons)