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| How Loyalty is Costing You Money |
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And for the most part, it works for us. Your parents were doing you a favor when they taught you loyalty. Yet when it comes to money, being loyal is one of the worst things you can do. By being loyal, you and your money are missing out on other investing opportunities, better returns and more income. Your spouse demands your loyalty and has every right to do so. Your money doesn't, yet we are loyal to a fault to it. Here are some of the ways loyalty is costing you money.
At Work Are you doing a great job at work, yet aren't being paid what you're worth? Then what are you waiting for? Sure, the economy is still in tough shape, but there's no harm in throwing some resumes around and seeing what competing companies are willing to pay you for your services. Your company has absolutely no problem laying people off once times get tough, so why should you be loyal to them? Even if it means moving to another city, you owe it to yourself to at least look at your options. Perhaps there's a city where your work is in demand, yet living costs are lower than where you're at now. These days moving to find work is very common. You'd just be moving to find better work. There's also something to be said for getting a fresh start somewhere else. Getting away from a toxic workplace is worth more than a simple raise. Even if you don't really want to leave, you can use your new job offer as leverage against your current boss. At The Bank How many of you just went to your bank or credit union when it was time to get a mortgage? How about when buying CDs or other investments? I'm guilty as charged, and I bet most of you are too. While the rate I got on my mortgage was competitive, it wasn't the lowest rate out there. Even when it comes to your checking account, it pays to shop around and see what deals other banks are offering. Buying Employer's Stock It's a tough situation buying your employer's stock. Yes, if they give you a 25% discount, you should be buying as much of it as you can. You just shouldn't be holding it for long periods of time. Having your salary and savings tied up in the same company is horrible diversification. If the company goes under, you lose your job and your nest egg. I don't want this to happen to you. You should sell most of your company's stock on a yearly basis, locking in that excellent 25% return. Then diversify those investments somewhere else. Groceries There's a Walmart and three other grocery stores in the town I live. Each of them run weekly sales, allowing me to buy cheap stuff at each. Even though one is ran much better than the others, I spread my business around to save money. Insurance How many of you just shopped for car insurance once and now just keep paying each year once the renewal shows up in the mailbox? Two years ago I was†disappointed with my rates, so I did a quick Google search to find some competitors. 15 minutes later, I was signed up at a rate that was $500 per year less than what I was paying. Those are just some of the ways being loyal is costing you money. There are advantages to being loyal to businesses or brands, I'm not denying that. Sometimes you just have to look at a product or service critically and make sure you're still getting value. This is a guest post by Financial Uproar. He writes about all things finance related, with a focus on investing. You can subscribe to his RSS Feed or follow his 140 character musings on Twitter.
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Your parents probably taught you way back in the day that loyalty is a good quality. And for the most part, it is. We're loyal to our family, our friends, our spouse and to a host of other things.
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