Warren Buffett :"12 Things POOR People Waste Money On!" financial independence , financial education
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Warren Buffett has mentioned 12 Things POOR People Waste Money On!
If you want to redeem a FREE ebook,
[ The Warren Buffett Way ],
kindly watch until the end.
1. Credit Card Debt
Credit cards do have benefits.
Many providers offer incentives to spend money using their cards like cashback points,
airplane miles, etc.
In this way, credit cards are a smart way to spend money,
only if you clear the full payment every month!
The problems with credit cards arise when you carry a credit balance.
The interest rate of the credit card is about 20%.
That means for every dollar you owed to your credit card company,
you’ll pay an extra 20 cents on top of it every month.
That’s an extra $200 of interest on a $1,000 credit card balance.
So, never carry a credit card balance!
This principle applies to any type of loan or financial obligation that requires paying interest.
Please make sure the loan is worth it.
2. Drinks At Bars
Money spent on pubs and bars amounts to thousands of dollars per year.
A bottle of beer usually costs up to $5 at a bar or restaurant,
sometimes closer to $10. If you buy from a grocery store,
you can expect to get a 6-pack of good beer for about $10,
which is at least 3 times cheaper than getting from bars.
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