- Monthly credit card balances
Credit cards usually carry very high interest rates that greatly diminish a person’s cash flow. Once freed up from high-interest debt, someone can begin building wealth and accomplishing their personal and financial goals. Pay it off and keep it off.
Housing, transportation, appliances, furniture, equipment, and even our own paychecks (see next topic). Businesses like Rent-A-Center make a “killing” off of our inability to budget and save enough money to buy our own stuff. People end up paying way more by renting than if they saved up the money to buy it outright.
- Mishandling paychecks
Paycheck advances and paying to cash checks are diminishing people’s income. I recently talked to someone who said they cash all of their checks at a corner store for a 10% fee. I asked them why they don’t just get a bank account so they can cash them for free and they said because it was more convenient to go to the corner store. I told him most banks and credit unions have e-deposit and he could just take a picture of the check to cash it. He seemingly didn’t think about that. If his paychecks total $30,000 annually, he is giving up $3,000 a year just because he didn’t know e-deposit existed. Expensive.
- The Lottery
Statistically, the poor are betting on the lottery and losing, while the rich are betting on the economy (by investing in stocks) and winning.
I created Captain in order to help end generational/cyclical poverty. I plan to do this through easily understandable financial education, as well as taking the time to meet with individuals/families regarding their own personal finances. We are here to offer free, unbiased, and helpful financial advice. Schedule an appointment today.