Fees vs. Fines
#fees #fines
People have no problem paying for parking, but hate it when they get a parking ticket. They’re fine with paying fees but want to avoid fines (even if the cost is less). When we pay for things where the price tag may not be immediately obvious, any additional cost feels like a fine. You invest in a stock and because markets are volatile and go down, that loss in wealth feels like a fine. It’s something to be avoided. Things look different if you start to view them as fees. That decline in the market is just a short fee for compounding returns. The tradeoff for the cost is easier to stomach when you reframe why you’re paying it. Uncertainty is a better fee to pay than the fines of regret.