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What is the one biggest waste of money in life today i’m going to share with you guys what that one thing is how it is the biggest waste of money out there and how you can avoid this i can’t wait to share this with you guys today good day subscribers thank you so much for joining me today on the financial education channel so today we’re talking about a very
Important subject what is the number one biggest waste of money you can possibly do out there and what it is it is paying interest paying interest is by far the biggest waste of money you can possible other than maybe burning the money that’s probably the biggest waste of money honestly it is so bad i want to run through a scenario with you guys let’s say you want
To get a car loan you don’t have a ton of credit built up because you’re under the age of 30 and most people under the age of 30 don’t have a ton of credit built up or they’re just might have missed some bills when they were younger because they weren’t as financially savvy those types of things so you might not have the best credit so let’s say you need this car
Loan and you want to get this $40,000 car okay cool nice car nothing too insane but a nice car $40,000 loan the bank says okay yeah we’ll give you that loan but we’re gonna give you a 20 percent interest rate you say okay that’s fine you know i just want the loan i want the car 20 percent interest rate sounds like a deal well let’s say you get that car loan for 10
Years most car loans or seven years first off so 7 years but we’re gonna do this 10 years just for simples sake by the end of those 10 years when you finally have paid off that car you will have paid for that $40,000 car you will have paid over ninety two thousand dollars fifty two thousand dollars in interest alone is that insane or what 90 mm is what you will
Have paid for that $40,000 car all because of the interest so that is how that’s how those big things got built that’s how they make billions of dollars in profits if you ever wondered it is it’s just some magic trick they do how do they make money it is on interest it is disgusting how much money they make on interest and it’s by far the biggest waste of money out
There other bad thing about interest is the interest gets paid first on any type of loan so whether it’s a mortgage a car loan a credit card loan whatever the interest always gets paid first so your first few years of owning a car you’ll notice the balance won’t even go down very much if you buy that $40,000 car the balance might have only gone down 3,000 $2,000
But yet you’re paying you know six thousand eight thousand dollars a year to the credit card bill how’s that happening because the interest is what’s getting paid first once the interest paid then the principal will really start going down so most people won’t see the amount go down very much until they’ve been paying on it for two three four years down the road
Same thing with the mortgage but a mortgage is usually 30 years so you can pay the first 10 15 years and you won’t even have much of the principles still paid off so it is sick it is sick how much money they make off interest so my suggestion being do not get a loan unless that loan is at a rate of interest that you feel comfortable you could make on stocks or real
Estate or other investments of your own assets so the way i think about it is the stock market goes up on average over the last 50 years or whatever about 8% a year so if you can’t get a loan for about around 8 percent or less then don’t get a loan and for sure as heck not if it’s over 10 percent and i know a lot of people get these loans at 15 12 20 % loans you
Know and it is just in seyn literally insane and you can build credit through getting a credit card and always paying off that credit card before the interest starts so as long as you always pay on time you won’t have to pay the interest on it that’s the smartest way to build credit so you get those lower loan rates i thank you so much for watching this guy’s i
Hope it was super simple as it should have been number one biggest waste of money paying interest if you haven’t subscribed you may want to i talk a ton about personal finance some about business and a little stock market and basically just overall education of the financial world and just try and do my best thank you so much for watching guys and have a great
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Biggest waste of money By Financial Education
