No matter what level of income you may have at the moment, there are businesses ready to take advantage of your financial situation. There are billion-dollar industries designed to extract the maximum amount of money from your financial decision making. These businesses are dependent upon poverty, poor cash management, poor financial planning, or pressing your weaknesses. Even with a very-low income, if you have any financial literacy then you can sidestep these vultures and remain on your upward financial trajectory. Below are a few examples of these businesses.
Money extractors of the poor:
- Pawn shops
- Payday loans
- Car title loans
- Check cashing
- Cash for gold/jewelry
Money extractors of the middle class:
- Credit cards
- No-money down sales
- Car leases
- Tax refund loan
- Layaway
Money extractors of the wealthy:
- Over spending from lifestyle creep
- Bad financial advisers
- Public philanthropy
- Multiple homes, cars, and boats that isn’t financially sustainable for you
I understand that an unusual set of circumstances can warrant stepping on one of these financial land mines. But if they become a routine part of your life, you are heading in the wrong financial direction. It is a red alarm that you need to make some drastic changes in your life and improve your financial literacy and capability.