Everyone wants to know the “secrets of the rich”. There are many books and articles written about these secrets. What do rich people do that’s different to the rest of us?
What do they buy? Where do they buy it from? Where do they live?
What do they invest in? What kind of businesses do they start? How do they make so much money? How do they get so much done?
People expect to hear feats of superhuman activity. Exotic investments and exciting once-in-a-lifetime deals that made them millions overnight.
Wealthy people do simple things that just add up over time.
They do small things that help make progress towards their goals. They make sure they’re productive every day. They put their money into things that will benefit themselves first and foremost.
Wealthy people use proven strategies that have been tested over decades. Strategies that have a chance of working out to their own benefit.
It’s not only what they do. It’s also about what they don’t do. They don’t do crazy things with their money. They don’t chase every get-rich-quick scheme that comes along. They don’t go to the wrong places.
Wait a minute, they don’t go to the wrong places? What does that mean?
Wealthy people stay away from places that will make them poor. If you want to be rich and build wealth then here are 3 places to avoid:
The Check Cashing place
Check cashing stores are strange. People go in there to cash their paychecks. The strange thing is that they pay a fee for this service. Paying someone to get your own money!
I personally have never used a check cashing place because the idea never made sense to me.
If you regularly take your paycheck to a check cashing place then my advice to you is this:
Get a bank account.
Find a bank that offers free checking accounts and open an account. Today.
The bank will cash your paycheck for free. That way you will get the full amount of your pay. The less unnecessary fees you pay, the further your money will go.
Rent-to-Own stores
Another money pit that will keep you poor is the rent-to-own store. This type of store is where you can buy furniture and electronics on a payment plan.
These stores allow you to make monthly or even weekly payments on items. In the meantime you get to use the item as soon as they can deliver it to your house.
The rent-to-own store brags about letting you sign up without a credit check. Basically, you can finance your purchase without risking damage to your credit score. Unfortunately, you’re also making payments that don’t improve your credit either.
There is a price for the convenience of these “no credit needed” payment plans. You end up paying way more for these items. That’s what happens when you finance purchases, the interest doubles or triples the purchase price.
If you want to build wealth, don’t overpay for consumer items. You can buy stuff for much better prices at regular stores.
Don’t get sucked into the trap of “low, easy payments”. The lower the payment, the longer the payments drag on.
That furniture or big screen TV then becomes a liability draining money from your wallet consistently. It’s an easy way to make others rich and keep yourself poor.
Instead, save money beforehand to make your next big purchase. Once you have enough to buy it outright, then you go to the store.
This way you’ll have the item and no stress over making payments.
Payday lender
This one may be the worst of all. The payday lender will give you a short-term loan that needs to be paid back by your next payday. Of course, there’s a fee for this “service”.
Imagine borrowing kes300 and having to pay it back within 2 weeks plus a kes100 fee. That’s equal to 33% interest added on in only 2 weeks.
If you can’t make that deadline then you can always roll the loan over for another 2 weeks. You can keep pushing the deadline back but there’s a fee each time you do that.
You can see how easy it would be to get stuck in a never-ending loop. People who take out payday loans usually don’t have extra money sitting around. They don’t have their finances organized and fall victim to these predators easily.
If you’re stuck in the payday loan trap already, don’t despair. It will be hard to get out of it but it can be done.
If you have other debts, get your debt snowball rolling. Do whatever it takes to pay the loan off.
Find a way to make some more money. Get a second job. Get a third job if you have to. Suspend your cable or any other bill that you can temporarily. Sell anything that isn’t bolted down.
Then make sure to never to go back to the payday lender again. The solution, besides making more money, is to take full control of your money.
It’s not just how much you make. It’s also about cashflow. Learn how to create a budget.
Remember, you can’t win with money when you’re paying unnecessary fees. Stay away from these 3 places and get on the road to wealth.