If you really want to be financially free and wealthy, you may want to question the status quo and reevaluate these heavily marketed ways of living life.
Billions of dollars are invested in confusing us and keeping us trapped in the rat race. Don’t fall for it. Be careful of making these blunders—and focus on getting ahead instead.
4 Financial Scams Sold to Americans on an Everyday Basis
1. Buying a House
Buying their “dream home” is one of the biggest traps people can fall into. Most people stretch their limits, get into massive debt, and get stuck paying the bank for the rest of their lives, while working 2 or 3 jobs to pay the mortgage. That novelty of a new home can wear off fast. Owning your own house can be great. But you’ve got to do it wisely and in the right order of things. The true costs of owning and maintaining a home can be far higher than most realize. Many also find they get financially stuck in that home, and that can begin affecting all other areas of life, from careers to relationships. Check out this debate on whether owning the house you live in is really a wise financial decision or not.
2. Avoiding All Debt
Focusing on getting out of debt, avoiding all borrowing, and putting off investing became a popular trend in the wake of 2008. It made authors like Dave Ramsey very popular. It’s understandable. However, the most successful and wealthy are not those who have no debt. They are those who know how to leverage wisely. They are ironically often those with millions and even billions in loans. Like Grant Cardone says, “Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.”
3. Going to College
Many of the smartest and most established individuals are those who dropped out. That includes Sean Combs, Bill Gates, Oprah, Larry Ellison, Mark Zuckerberg, and more. Many are also big real estate buyers. Many top minds now say that college and the education system in America is one of the biggest scams of all. I personally struggled with this decision. I wouldn’t change the way I did things. Find out how I navigated this giant scam in this article.
4. Save, Save, Save
Don’t get me wrong—saving is necessary at times. Everyone should have some emergency capital saved. But you aren’t going to successfully save your way to a comfortable retirement. Even if bank savings rates go up to 4% again, that just doesn’t provide the necessary juice to get and stay ahead financially. Don’t even expect it to keep you in the middle class, if there is even such a thing anymore.
It takes a high level of awareness to know what is really going on out there. Avoid the herd mentality, and start to think for yourself. If the masses are going one way, then by going the opposite route, it is highly likely that you will find success. I truly believe this.
[Editor’s Note: We are republishing this article to help out our newer members.]
What would you add to this list? Would you agree that these constitute financial scams?
Let me know your thoughts with a comment.