Everybody is trying to make money. Some in more grey zones than others but you can count of many bombardments of people trying to sell you STUFF. Sometimes it could be convoluted financial instruments that will only bite you years later, other times you might not even notice you received an inferior products. Let me point to some of the bigger pitfalls you could have so that you may avoid them in the future.
How’s it going everybody this is beat the bush today’s topic is going to be know your finances or perish we live in such a world worth basically a financial minefield out there we do live in a capitalistic country so that everybody is trying to make a profit off of you very few people and companies actually try to give you the most value for your money so basically
If you go out there unprepared people are easily gonna be able to take money away from you swindling or whatnot and just basically trick you out of your hard-earned money now today i’m just gonna cover a few basic topics which would prevent you from losing your money like crazy but first of course let me take a sip of my milk tea over here it kind of cooled down a
Little bit by the time i did the intro anyhow the first thing is predatory lending and it comes in many many different forms one of them being when you go to a electronics store and they try to sell you something and they say 0% down and no payments for like a year or two years the fine print here if you ever read the contract is that if you fail to pay before the
Promotional period they’re going to go back to the very beginning and charge you a really high interest rate like 17% or something so if you borrowed let’s say $1,000 for a mattress and it’s 12 months of no payments or something 0% apr if you fail to pay in full the whole $1,000 before the 12 months so you’re gonna go back and charge you something crazy like 25%
Apr from the very beginning so they’re gonna pretend that it was 25% from the very beginning that you never made payments or they’re just gonna keep on compounding at 25% 25% right so if you fail to make that payment at the very end you’re gonna end up owing like $2,000 where rather than that $1,000 so this is what i call predatory lending other types of predatory
Lending comes in the form of adjustable rate mortgages now to meet whenever i look at this i’m like oh my gosh i cannot believe this is allowed to happen that they can just somehow reduce the rate and people not in the know they’re gonna look at this rate and go oh it’s really low okay yeah i can afford that and they just look at what they need to pay right then and
Right now and they do not really look at what they have to pay if they get locked into this armed mortgage suddenly the interest rate gets adjusted really high five percent six percent or something and suddenly they cannot make the mortgage payment and this is what caused a lot of people to default on their mortgages before because they look at the our mortgage and
They think they can afford it but it turns out that once it switched over to the adjustable rate rather than the really low introductory rate they get in trouble because their payments inflate a lot these types of lending is just all over the place they like to change the contract around it’s always something to trick you so then you know i would get mailings and
Stuff and i read them i’m like oh yeah you know there it is there’s the trick it comes all the time and it comes in different forms so this is something that you have to be alert about and read the fine print once in a while for any kind of new type of lending scheme that they try to give you other things i can hurt your finances is buying things that are really
Not worth it and buying things that causes you to spend a lot on other things as accessories this is what i call casualty spending now if you’re interested in things that you should not buy i’ll leave my playlists of don’t buy it you don’t need it over here many people just like to ignore finances altogether it’s not a very interesting topic to some people it’s just
Something that you have to do and i think everybody needs to do it and everybody needs to get really good at it because it is your livelihood after all an example of people ignoring their finances is that yes they go find a job they go work they get a paycheck and all this money goes in the pay checking account and they spend it yeah okay they’re paying their bills
And stuff however a lot of people just like to ignore their 401 k when you start a job a lot of places they did not use to start investing in something for you nor do they select a matching amount i’ve seen several companies these days now where once you start a job they would automatically turn on the matching they would make sure that you invest at minimum the
Matching amount and on top of that whatever amount that you put in there they would automatically invest it for you already on some index fund or whatnot now not all companies are gonna do this and for people that just put money in there it basically sits in the cash and you forget to even look at it or try to invest it in something this is kind of ignoring your
Investment and many many months can go by before you kind of have time to go in there and then go okay how do you do this you have to search for your login first sometimes people don’t even know their login and they have to go in there figure out what’s going on and like pick selections and this is a really boring thing because you don’t see the money immediately
So you’re like okay this is so far off why do i have to do this well this is really important to just get a handle on just kind of knowing where all of the funds in your 401 k k are invested people that are financially savvy they all know if they’re fully vested in 401 k what percentages they have and whatnot i i personally know this myself so part of all this is
Knowing your finances knowing about your 401 k and not perishing in the real world one other financial landmine out there is when you buy a new car they often like to ask you to prepay for the service and they offer you a really good price so the first year or two it might be free and then they’re like oh okay you can have one year two year or three years more of
Service like changing oil spark plugs and things like that except tires and then they can offer you a really big lump sum i don’t know it’s usually like couple thousand dollars or even ten thousand dollars that’s added on on top of the car and then you can go okay yeah if you pop buy this you can get free service it’s not really free you’re just pre paying for the
Service but when you really look at how much it costs you to get the same service that they’re offering it’s actually a lot lower than what they want you to pay for example if you add up like the service of oil change if you find a good place exchanged oil or if you know how to change it yourself change brake pads change add coolant all of those things cost really
Little and even if you haven’t done outside not at the dealership and not pay this lump sum it’s oftentimes much much cheaper to not buy the packages at the dealership and just go find your own place to get this stuff done the last thing i like to cover that’s a financial landmine is scams on the street you’re gonna get scammed people are gonna try to scam you
But one good metric to do is to not ever pay anyone on the street even if they’re trying to sell you something sometimes people might walk up to you and then go hey look you know i’m selling you this and this or they’re selling stuff out of their trunk they stop you they want to you know want you to buy like some stereo system i think i read somewhere that you know
After you buy inside is all these cheap components inside it’s basically worth a lot less now i never had a good experience from when someone finds me and tries to sell me something this is the most shadiest of things because why are there on the street in the first place and why are they selling me some something maybe they stole there so the easiest easiest way to
Avoid any kind of scams is to not do any kind of financial transactions with people that find you make it a point to not take any cash out of your wallet in one form or another just always remember this and whenever that happens you kind of have to think really really hard about this before going on with the transaction i hope you enjoyed being warned about these
Different types of financial time bumps if you didn’t know about them before i guarantee you if you apply this in the future you’re gonna save yourself a lot of money you’re gonna save yourself a lot of headache don’t forget to give me a like on this video comment down below let me know of other types of financial time bombs on you know about if you’re interested
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Transcribed from video
Avoiding Financial Land Mines By BeatTheBush
