Is there a worse feeling in the world than when you realize you’ve been ripped-off? Cue sinking feeling. We all want to be good field generals for our Army of Dollar Bills. Part of being a good leader and steward of your money is keeping as much of it safe and productive as possible.
Unfortunately, there are quite a few products, services, and straight-up rip-offs that you need to be aware of so that you can decide what is appropriate and what will detract from your financial vision. It’s sometimes difficult to tell the difference between useful investment or expenditure and the equivalent of lighting your money on fire.
Several of the items we cover in this episode of The Money Guy Show do serve legitimate needs and you will only be able to tell what’s appropriate versus slick sales through education. Remember, knowledge is power!
This show is also stocked full of useful and surprising information that you may not have been aware of. Even if you are a Money Master, there are nuggets of information you can share with your tribe. Be sure to tune in as we share our thoughts on the worst financial rip-offs so you can determine if they are useful to you or if you should steer clear.
Here’s a High-Level Summary of What We Delve Into:
- Interest on Credit Cards and why you should avoid paying it altogether
- Bank fees including ATM fees. If your ATM card charges ATM fees, you should not use that ATM card or find a different bank.
- Guaranteed returns. Guarantees are expensive. Understand what type of guarantee you’re hoping for and assess whether that is something you can guarantee for yourself (i.e. emergency cash reserves) rather than paying a premium for it.
- Brick and Mortar Saving and Money Market Accounts. Online banks are offering high-yield savings accounts with much better interest rates than brick and mortar savings accounts.
- Annuities in IRAs. Annuities often have an additional 1-1.5% of annual annuity expenses.
- Certain college degrees. Be sure to do your research before picking a degree. You want to know the lifetime ROI on the degree and what the job market for that degree looks like.
- Time Shares. Do you really want to own one?
- Cable and satellite TV. How much cable do you actually use? There are other options. Check out our show, “Is It Time to Cut The Cable Cord?”
- Whole Life Insurance. Understand what you need life insurance for and why you would choose whole life over term.
- Pay Day Loans. These carry some of the highest interest rates and are rarely your best financial option.
- Lottery Tickets. What if you could increase your odds of winning money? There are better uses for your $1. Check out this past episode on Wealth by Generation.
Every dollar in your army is valuable and should be viewed as a tool for the future. We hate seeing hard-earned money lost through slick sales, fear, or manipulation. We often say our best clients are educated clients. We have the hearts of educators and feel that understanding these items could help you better analyze your options.
Resources and Research Mentioned in this Episode
- As of September 5, 2018, the average card rate has risen to 16.92% https://www.creditcards.com/credit-card-news/rate-report.php
- The average American household carries a balance of $5,700 https://www.businessinsider.com/average-credit-card-debt-in-every-state-ranked-2018-8
- The average American spent $329 on bank fees in 2017 – https://www.fool.com/investing/2018/04/19/you-may-be-paying-more-in-bank-fees-than-you-reali.aspx
- A 2015 Bankrate article shared that 78% of Americans said they prefer financial products with guaranteed returns over other options, but those guarantees can be expensive https://www.bankrate.com/retirement/guaranteed-returns-can-be-costly-in-retirement/#slide=1
- Online rates were at 1.6% – an 8 fold multiplier https://www.cnbc.com/2018/01/04/where-to-earn-the-best-interest-on-your-money-right-now.html
- The difference in lifetime earnings between the highest-paying college majors and lowest-paying majors is $3.4 million https://www.kiplinger.com/slideshow/college/T012-S001-worst-college-majors-for-your-career-2017-2018/index.html
- Why Buying a Timeshare is a Bad Idea
- Past decade prices for TV service have risen almost twice as fast as inflation. Cable and satellite TV bills have soared 53% since 2007, to $100.98 in 2017 https://www.usatoday.com/story/money/media/2018/01/05/tv-rate-hikes-why-cable-bills-rising-again-and-what-can-you-do/1006639001/
- Dave Ramsey video from May 2016 about Whole Life Insurance https://www.youtube.com/watch?v=c4lnaZJKGvU
- Where lottery money comes from https://money.cnn.com/2018/01/06/news/powerball-mega-millions-who-buys/index.html
Tune In and Go Beyond Common Sense with the Money Guys
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