Avoid These HUGE Post Pandemic Money Traps

so with the world in total chaos there are a number of financial events that are going to occur to millions of people throughout the world and some of these events are going to be worse than others now our goal here on this channel is to help educate people with personal fineness showing them how to save money and make money invest and create a better financial future for yourself so if you're new here to the channel and make sure that you subscribe and let's get started here discussing some of these money traps these events that are going to occur to so many people that we need to avoid and don't forget to hit the like button I guess if you if you want to so the first money [ __ ] is get-rich-quick schemes now these always seem to really crop up during recessions or during times when 26 and a half million people in America are out of work suddenly you see people coming out in droves telling people that they can show them the way to make money and you know you probably see these ads before my videos all the time or if you're on Facebook or Instagram or snapchat or pretty much anywhere on social media I don't like to generalize but it tends to be a 20 year old guy with the Gucci t-shirt and a BMW i8 and he sticks his phone in your face he says I made fifty four thousand dollars last month with Shopify dropshipping I'm gonna change your life just join my free webinar or my free training or pay me two thousand dollars and I'll show you how to do it that's what that means they're squeezing money out of people and this isn't to say that all online courses are bad but during a time like this sometimes you see people who are preying on others and they're using specific ads to target specific people telling them that they can get them out of the debt that they're in it they can change their lives and by next month they're making $100,000 now maybe this is the case for some people but there are far too many fake gurus squeezing money out of people who cannot afford to put food on their table tomorrow they convince them to buy their two thousand dollar online course with their credit card rack up more debt and then take advantage of those people you know it's it's really a shame to see it happen it's 2020 this is what happens that's not to say that all online courses are bad I have a number of friends who actually have some really great courses look at me Kevin or Graham Steffen or Ryan Scribner some of my friends who have some really good courses and they care about their students they care about the information that they're putting out there and they're helping the people but there's a lot of bad apples in industry so please be aware of these get-rich-quick schemes if somebody's telling you that overnight they can double your stimulus check or make you extra money just please watch out for them there are so many scams out there at the moment it's absolutely pathetic you hate to see it happen but when people are in financial stress that is when the terrible people come out and they just squeeze money out of people if they just wring you out like a sponge not cool now another thing that comes up in many times like this are predatory loans and this is really looking at financial institutions and companies and that prey on people who they know that they can't pay their bills they know that they can't afford anything and so they go out and they say hey don't worry we can front you some money we can lend you some money and then next thing you know this person who is desperate they sure you could say it's their fault but when somebody's absolutely desperate they need to put food on the table tomorrow they're more likely to end up getting into these predatory loan programs whether it's payday loans it's this app that maybe you've seen those ads or they're like I'm at the gas station filling up on gas but I don't get paid till next week thanks to this payday loan right a lot of these I just don't like them if you've been watching this channel for a long period of time you'll know that we're very against debt we're not as crazy as Dave Ramsey about it yeah but please try to stay away from debt in any of those loans that are predatory or ones that are really trying to keep it pretty deceptive they they want you to end up in their programs where they confront you some money they can lend you some money they want you to not read the fine print that says you owe 30% interest on this money and it's it's just a really bad situation for a lot of people who end up in that debt now I always try to avoid politics on this channel because honestly I don't care what your political views are I don't even care about politics but I really don't like to see companies that prey on people who have no money they cannot afford to pay their bills and they know that they can squeeze pennies and nickels out of these people because they can take advantage of their current financial situation I don't like when companies do that there's plenty of money from middle class upper class other businesses but the companies that solely focus on how can we squeeze as much money out of this person who makes 725 an hour I just don't like it I don't think it's good so one that we've seen occurring for a quite a period of time is letting market fluctuations make you do something that going to regret in the future I'll give you an example of this I I know people who bought a lot of stocks in January and February when the Dow Jones is at 29,000 points and then they watch the market slide they got very scared they thought they were going to lose a lot of money they did lose a lot of money but they ended up selling when the market was at eighteen thousand five hundred points on the Dow they ended up selling when the markets was we're down forty percent and then now they've recovered a good bit I don't know how much of its real I did to be honest I had the markets are sitting pretty high right now but they sold at these bottom parts and this actually occurs to a lot of people where they end up buying high and then the markets come crashing down they get scared so they sell they sell when it's low and then they watch the market recover and they say Amen I just missed down on some good returns I better buy if they buy at the top again and next thing you know it goes down again this is a really vicious cycle that I see dozens of people getting into all the time so the key here and we said this in many other videos is to use logic rather than emotion you're gonna see news you're gonna see a lot of fear-mongering and there are a lot of extremely valid problems in the economy at the moment of course but make sure that you keep your head in the long-term thinking about companies long-term profitability if you are investing into the stock market rather than looking at a news article saying that the world's actually going to blow up next year and then selling everything because you think that the markets are going down to absolutely zero no I can't tell you where the markets are going but I can tell you this that when the markets were below 20,000 on the Dow I was buying stock it was a difficult time to do that trust me it's a lot more difficult to actually press the Buy button when you look and you just lost like thirty thousand dollars the week prior and then you're buying more stocks it's extremely difficult to get yourself to do that and it's not always the right option but during this time I thought it was the right option and I was buying stocks when they were down and so now I'm up quite a bit and it's not to say it's going to stay up forever I think we're due for some many many headwinds in the future but make sure that you were not making decisions that you're going to regret in the future because you were using emotion rather than logic for your investment so another trap is expecting the government to bail you out in these situations and once again I don't get political on this channel but if you are banking on the government giving you another stimulus check please don't because I think there will be more stimulus checks I think there will be more money flowing out into the hands of can people but don't bank on it don't don't factor it into your finances and use it as a last resort I'm talking like plan ABCD efg plan G is rely on government everything before that you should be doing to ensure that you are able to fend for yourself and fend for your family and make sure that you are helping others in your community before you rely on the government to assist you now this might sound a little bit personal to some people and then I'm not personally coming out anybody here but if before this procession you were making a hundred thousand dollars a year or more and you are suddenly sitting here now and you're not able to pay your bills you can't pay your mortgage it can't pay for your new BMW that's your fault and it's important to take responsibility for that if you're making $20,000 a year or $30,000 a year and you can't afford to pay your bills at the moment that's understandable but what we're referring to here are the people who were making a lot of money middle-class and upper-class people who did not save any of it they don't have an emergency fund they don't have a rainy day fund and now they're sitting here struggling to pay their bills that's your fault and it's important to take responsibility for that and I I know some people can get really angry at that but it's true and people have been watching this channel for a long period of time you've saved your money you've built that six to eight-month emergency fund and you're sitting there hopefully with that emergency fund feeling a little bit okay in terms of finances I know there's a lot going on the world but in terms of finances you're feeling a little bit ok knowing that you're able to pay your bill for the next six months because you've saved up that emergency fund so it's important to take responsibility for our actions so that in the future we can set ourselves up for success for the next recession that occurs we know that okay this is what we need to do it's important to take responsibility for that so we have those funds set aside for any type of event such as what we're dealing with at the moment and a lot of people don't like to take responsibility for that they'll find any way to blame possible they'll say it's somebody's fault for starting the virus or spreading the virus or or just find somebody to blame besides themselves and it's something that takes a lot a lot to really look at yourself and say you know this is my fault for doing this and this happens to me all the time sometimes I'll be pointing the finger you know if you get in a car accident because you rear-ended somebody say it's their fault because they were braking too hard but in reality sometimes you have to look at the situation say you know I was probably tailgating them I was probably too close to them and it's difficult to do that it's difficult to do that because in a lot of cases it's easy for us to look at selves as the victim because it's easy to be the victim it's true you know that's that's that's a little personal there but it's true and please don't fall into the trap of paying just the minimum payments especially on your credit cards now I know there's a number of people doing this because they're they're struggling to pay their bills but if you get your stimulus check if you get some money pay those high interest debts as fast as possible don't just pay that minimum payment if you can afford to pay more pay more because those credit card bills is what's going to haunt so many people so paying just that minimum payment it's it's going to be detrimental to your finances because at the end of the year when you look at your finances and you see that you've eight thousand dollars worth of credit card bills at a twenty five percent interest rate it's going to be absolutely detrimental it's gonna be difficult to dig out of that hole you're digging yourself in a hole and you need to get out of it as fast as possible so avoid just paying the minimum payment if you can of course if you can't there are other options I mean you could transfer it to a 0% APR card or you could find other ways to pay it off consolidate loans but please avoid just paying the minimum payment if you can and finally make sure that you avoid some of those 0% APR deals that are only for a certain period of time now there are actually a lot of good deals that are opening up at the moment for buying certain products I saw that GM just extended a 72 month 0% interest deal for their cars because they're trying to sell cars now honestly is actually not a bad time to buy a car and probably throughout 2020 should be a pretty good time to buy a car because you're gonna have really low interest rates and you can probably negotiate pretty well because a lot of dealers they need to move inventory these car manufacturers they need to move inventory but who's buying a car right now not many people and so there could be good deals but I want you to avoid some of those ones that you're going to see in big letters it says zero percent APR zero percent interest and then really tiny next to it you'll price you like a little star and then you got to go all the way down to the bottom of the page and then you'll see some really tiny fine print that says 0% APR for the first 12 months and then it's 30% APR 25 percent interest be careful of that make sure that you read all of that fine print they make it tiny on purpose because it's not good it's bad and so make sure you read through that before you sign on any dotted line for any type of loan so I hope you found some value in this video if you did make sure you drop a like subscribe to the channel if you haven't done so already and I'll see everybody in next week's video

Channel: Nate O'Brien

Views: 163,458

Rating: 4.9481306 out of 5

Keywords: nate o'brien, 20s, financial mistakes, financial mistakes to avoid, how to investment, how to save money, how to start investing, learn to invest, money, money mistakes, money mistakes to avoid, money pits, money tips, money traps, money traps to avoid, personal finance, save money, saving money, stock market, finance news

Id: 3ger5jlT6Js

Length: 11min 5sec (665 seconds)

Published: Tue Apr 28 2020