{"id":85907,"date":"2020-07-09T10:00:43","date_gmt":"2020-07-09T16:00:43","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=85907"},"modified":"2024-02-23T16:44:52","modified_gmt":"2024-02-23T23:44:52","slug":"biggest-financial-scams","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/biggest-financial-scams","title":{"rendered":"4 Massive Financial Scams Sold to Americans on an Everyday Basis"},"content":{"rendered":"

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.<\/span><\/p>\n

Billions of dollars are invested in confusing us and keeping us trapped in the rat race. Don\u2019t fall for it. Be careful of making these blunders\u2014and focus on getting\u00a0ahead instead.<\/span><\/p>\n

4 Financial Scams Sold to Americans on an Everyday Basis<\/h2>\n

1. Buying a House<\/h3>\n

Buying a “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 two or three jobs to pay the mortgage. That novelty of a new home can wear off fast. Owning your own house can be great. But you\u2019ve got to do it wisely. <\/span><\/p>\n

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 <\/span>this debate<\/span><\/a> on whether owning the house you live in is really a wise financial decision or not.<\/span><\/p>\n

\"BRRRR-strategy-deal\"<\/p>\n

Related:<\/strong> Grant Cardone is Right: Owning a Primary Residence Usually ISN\u2019T Smart<\/a><\/em><\/p>\n

2. Avoiding All\u00a0Debt<\/h3>\n

Focusing on getting out of debt, avoiding all borrowing, and putting off investing became popular trends in the wake of 2008. This made authors like <\/span>Dave Ramsey<\/span><\/a> very popular. It\u2019s understandable. However, the most successful and wealthy are not those who have no debt. They are those who\u00a0know how to leverage wisely. They are ironically often those with millions and even billions in loans. <\/span><\/p>\n

Like Grant Cardone says, \u201cRich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.\u201d<\/span><\/p>\n

3. Going to College<\/h3>\n

Many of the smartest and most established individuals are those who\u00a0dropped 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. <\/span><\/p>\n

I personally struggled with this decision. I wouldn\u2019t change the way I did things, though. Find out how I navigated this giant scam in this <\/span>article<\/span><\/a>.<\/span><\/p>\n

\"college-rental\"<\/p>\n

Related:<\/strong> Dave Ramsey Is Wrong: You DON\u2019T Need to Be Debt-Free to Hit Financial Freedom<\/a><\/em><\/p>\n

4. Save, Save, Save<\/h3>\n

Don\u2019t get me wrong\u2014saving is necessary at times. Everyone should have some emergency capital saved. But\u00a0you aren\u2019t going to successfully save your way to a comfortable retirement. Even if bank savings rates go up to 4% again, that just doesn\u2019t provide the necessary juice to get and stay ahead financially. Don\u2019t even expect it to keep you in the <\/span>middle class<\/a> (<\/span>if there is even such a thing anymore). <\/span><\/p>\n

Summary<\/h2>\n

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.<\/span><\/p>\n

\"Blog<\/a><\/p>\n

What would you add to this list? Would you agree that these constitute financial scams?<\/em><\/p>\n

Let me know your thoughts with a comment.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

We commonly believe that going to college, buying our dream home, and eradicating debt is the “correct” path. But are we falling for massive scams?<\/p>\n","protected":false},"author":12140,"featured_media":117244,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4433],"tags":[],"class_list":["post-85907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/85907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/12140"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=85907"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/85907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/117244"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=85907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=85907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=85907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}