Tag Archives: banks

Everything You Need to Know About Hoarding Money

While hoarding money is not really a common phenomenon, it does happen from time to time. Nine times out of ten, distrust, paranoia, and fear are the motivating factors for individuals who willfully chose to hoard cash.

An Overview of Paranoia and Money

Reports from Money Instructor affirm that the decision to hoard money is often indicative of mental health ailments such as obsessive-compulsive disorder. When most people think of someone hoarding cash, they generally imagine a frenzied individual shoving large amounts of bills into mattress holes. While the aforesaid behavior can occur, there are also other prevalent behaviors associated with hoarding money.

For example, people who hoard money are usually very particular, even to a fault, about saving on expenses. Frugality has its merits, but, as the old saying goes, too much of a good thing is never good. Someone who suffers from money-related mental health issues will frantically fret over money spent down to the last cent. They may furthermore refuse to rid themselves of purchased items, even ones that have considerably depreciated or otherwise lost their value.

Unfortunately, money paranoia is not limited to hoarding cash and taking frugality to extreme measures. Individuals who are plighted with money-related mental health issues are moreover likely to retain all purchased possessions, review bank statements on a daily basis, and refuse to use certain resources for fear of “wasting” money. Chronic money hoarders may even cheat or swindle their relatives and friends for the sake of preserving or sustaining capital.

What Prompts Someone to Hoard Money?

Although one certain cause of hoarding has yet to be found, Psychology Today affirms that there are certain factors and circumstances which can increase the likelihood and susceptibility to hoarding. For instance, individuals who struggle with decision-making, have undergone past trauma, or have relatives who hoard are more probable to become hoarders themselves. Many people who frequently hoard money also usually suffer from variations of anxiety or depression related disorders.

Unfortunately, additional reports from Psychology Today affirm that hoarding can persist as a lifelong ailment. However, there is some light at the end of the tunnel. Treatment options to combat hoarding include cognitive-behavioral therapy, antidepressant prescriptions, and treatment designed to help afflicted individuals make better choices, lessen stress levels, and learn organizational skills. The ultimate goal of professional treatment is to help afflicted individuals feel comfortable with letting certain things go and absolve the need to obsessively hoard money.

A Final Word

Each person has their own unique relationship with money. However, said relationship can become problematic when money management is taken to extreme and unprecedented levels. Paranoia, regardless of its target, is never healthy and should always be remedied when its presence is made apparent.

Overcoming the desire to hoard money and other objects may be tough in the beginning, but with the proper work, time, and treatment, it can be done. Afflicted individuals are furthermore recommended to seek out professional help to combat hoarding as opposed to self-medicating.

Authored by Gabrielle Renee Seunagal

Should You Keep All Your Money in the Bank?

In this day and age, money management is a critical skill for financial success. A considerable aspect of money management involves knowing where to store one’s funds. Although people have traditionally kept their money in banks, more and more people are beginning to question the wisdom of the aforementioned decision. Furthermore, those who are against keeping some or all of their earnings in banks are wondering about the existence of other alternatives. Thankfully, there are options for people who wish to store their funds elsewhere. The case for keeping minimal capital in the bank is also quite strong.

The Necessity and Flaws of Banks

In 2018, banks are, arguably, a necessary evil. Virtually everyone has a bank account. In most situations, these accounts are essential for transferring, receiving, and withdrawing funds. Nevertheless, banks are inherently flawed and while closing a bank account is ill-advised, exercising certain degrees of caution and pragmatism is highly recommended.

First and foremost, whenever one deposits money into a bank, it is no longer truly “theirs.” Granted, the numbers of the deposited amount shows up on any account, but in actuality, banks loan out deposited funds. These funds are why accounts which incur negative balances are still able to function in at least some capacity. Nestmann furthermore states that were everyone who deposited money into a bank to withdraw all their money simultaneously, the bank would not be able to cover it. This, in and of itself, serves as credence to the reality that your money stops being “your” money when you deposit it into banks.

Despite the aforementioned flaws, keeping somewhat minimal amounts of money in the bank is still a sound judgment call. There are still some businesses which do not accept cash payments. Therefore, a credit or debit card will be necessary in order to receive certain goods or services. Transportation via Lyft/Uber, travel accommodations such as Airbnb, and the purchase of plane tickets are several instances where a credit or debit card is required for payment.

In the case of banks, keeping some, but not all or even most of your funds in an account is the smartest decision in 2018.

Other Places to Store Capital

While many people are aware of the problematic factors of banks, they remain unaware of other places to store their earnings. While some individuals opt to keep large amounts of cash in safe boxes or other hidden places, Investopedia confirms the variety of options for those who wish to store their capital outside of banks.

Government bonds, precious metals, and other collectible assets are great avenues for those who wish to store their money outside of traditional banks. Unfortunately, there is not a risk-free location where money can be stored, however, with the proper steps and decisions, each person can greatly minimize the risk of losing capital. Many people have found that storing various amounts of earnings in different locations is preferable than keeping all of their money in one metaphorical basket.

A Final Word

Banks should be viewed and treated as necessary evils. While some people may view banks as virtually secure, this is not as accurate as most would like to think. Ultimately, the decision lies with each individual; however, most people usually feel the inclination to protect and preserve their earnings.

Authored by Gabrielle Seunagal