99.99% of People Stay Broke Because They Make These 5 Money Mistakes / Newhitzgh


 

1. Paying on credit versus cash

Paying in cash offers very little benefit. No rewards, no protection, with credit cards, you gain those benefit. Plus you build credit which impacts all areas of your life

Unless you can’t handle having a credit card, opt to use one.

2. Actively or passively investing

It’s cool to pick individual stocks but it will likely keep you poor. Passive investing is proven to yield better returns, It also saves you a ton of time. Time you can use to make more money to invest with

3. Buying or renting a home

You should own if:

- You plan to settle in one area

- Can afford interest rate rises

- Want the pride of ownership. You should rent if:

- You’re transient

- You’d rather invest your free cash

- You want less responsibility.

4. Investing or paying debt

You should invest if:

- Returns exceed cost of debt

- Don’t mind carrying debt. You should pay debt if:

- Interest exceeds returns

- Debt stresses you out

- Your debt stops you from taking on more debt.

5. Paying or free learning

You can literally learn anything you want for free. But you probably shouldn’t. Most people need something to be at stake for learning to take place

You’re probably better off paying to learn because there is a cost to “free”

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