May the Financial Force Be With You! | St. Johns Bank
The team at St. Johns Bank did a lot of thinking when everyone took advantage of the May 4th saying, “May the FOURTH be with you!” And we came to the conclusion that there are a lot of things that Star Wars can teach you, especially when it comes to finances.
Are You a Financial Jedi?
For example, the first of the Star Wars series taught you the value behind the purchasing of a used car. Remember when Obi Wan Kenobi and Luke Skywalker have to quickly raise money to pay for admittance on the Millennium Falcon? Luke Skywalker had to end up selling his land speeder at a value that was way less than he had hoped for, which is just how our cars depreciate once they pull away from the lot. In fact, according to research, when you purchase a new ride, you can go ahead and take approximately 20 percent off the value of the car. However, if you select a used vehicle, you don’t have to worry about the vehicle depreciating as fast as a new ride.
Star Wars also taught us the cost that comes with debt. For instance, Han Solo shows us what control we give a person (or financial institution) when we owe him or her (or them). In Episode 4, Han Solo starts running from the debt he owes Jabba the Hutt, only to be caught in Episode 5, and, then, in Episode 6, frozen in carbonate as an example of what can become of you when you owe money to Jabba the Hutt. Therefore, it’s important to take hold of this lesson to help ensure you won’t fall into the same financial trap. While, yes, chances are the debt collector won’t be freezing you in carbonate, you will be headed toward a downward spiral full of fees and interest if the debt isn’t paid in a timely manner. In turn, your credit score can suffer, which can then hurt your chances of one day owning a home or purchasing a new vehicle.
As a result, you want to avoid debt as much as possible by establishing a household budget (which you review at least every quarter) and stick to the budget. In fact, aim to stay below budget so that you can ensure you’re protected against the “debt trap.”
The team at St. Johns Bank wants the financial force to be with you—now and always. Visit our website to learn more about how our services can work for you and your finances.