Never Take Life Advice From a TikTok Video
The Ramsey Show
Deep Dive
Why shouldn't I use credit cards for rewards and cashback?
Credit card rewards come from a wealth transfer from less educated and poorer individuals to wealthier, more educated individuals. The credit card companies profit from those who pay interest and fees, not from the rewards they give out. Building wealth through credit card rewards is a false narrative and can lead to debt accumulation.
Why do millionaires still need to budget?
Even millionaires need to budget to ensure they are spending wisely, saving enough, and not falling into a scarcity mindset. Budgeting helps in planning for taxes, unexpected expenses, and maintaining financial discipline.
Why did the husband lie about his net worth before marriage?
The husband likely lied about his net worth to present himself in a better financial light, possibly to secure the marriage or to avoid revealing his financial troubles. This deception can lead to trust issues and financial strain in the relationship.
Why is it unwise to use home equity lines of credit for paying off a mortgage?
Using home equity lines of credit (HELOCs) for paying off a mortgage can add risk, as the HELOC is secured by your home. If you fail to make payments, you could lose your home. It's simpler and safer to pay extra directly towards the mortgage principal.
Why is it important to budget even for high-income earners?
Budgeting is crucial for high-income earners to ensure they are not overspending, to plan for taxes and retirement, and to maintain financial discipline. It helps in tracking expenses and making informed financial decisions.
- No one has built wealth because of credit card rewards.
- Credit card companies make money from interest and fees paid by less educated and less wealthy individuals.
- Building wealth comes from living on less than you make and investing the difference.
Shownotes Transcript