20. Extended Warranties
If you’ve ever made a big purchase on something such as a flat-screen TV, then you were probably asked if you would like to purchase an extended warranty. Well, according to Dave Ramsey and other experts, someone who is financially successful would answer “no” to that. Moreover, although people want the most value from products, extended warranties generally don’t give you more bang for your buck. Often, they just put more money into the pockets of large companies, according to Ramsey in an interview on his website.
In fact, according to Consumer Reports, retailers keep about 50 percent or more of what they charge you for an extended warranty. So extended warranties are usually something that rich people tend to avoid. What do they do instead? They do their own research on products before making big purchases, something everyone should do. When buying something expensive from the store, check your manufacturer’s warranty before saying yes to an extended warranty because you might have more coverage than you thought. Also, compare the cost of any potential repairs versus the extended warranty on your product.
19. They Have Lower Interest Savings Accounts
Suppose you like stashing cash into a savings account because it’s secure, and you can pull money out on a whim and would like to see more than pennies on your interest. In that case, you should consider changing your strategy to emulate a financial mogul truly. Regular savings accounts don’t earn you much interest. The national savings account rate is a meager 0.06 percent, which is a big difference from what you can expect from a high yield savings account. By looking beyond traditional brick-and-mortar banks, you can find high-yield savings accounts.
For example, online banks frequently offer higher return rates because they have no or lower overhead costs. Credit Unions provide more attractive rates as well. A recent GOBankingRates survey found the best savings account rates in the country tend to be at credit unions, with some rates topping 7% APR. Explore online savings account options if you are looking to boost your wealth by making more wise decisions with your money.
18. Bad Real Estate
Billionaire investor Warren Buffett still lives in the house he bought for $31,500 in 1958, in Omaha, Nebraska. He paid significantly more for his vacation home in Laguna Beach, California, purchasing the 3,588-square foot home in 1971 for $150,000. In 2017, however, he put that property on the market for $11 million, meaning he could turn a $10.85 million profit if he gets his asking price. Author and entrepreneur Tony Robbins advised millennials to look at property as an income engine rather than as a place to put down their roots.
The truth is, however, few homeowners will be as lucky as Warren Buffett or hang on to homes for as long as he has, and there is never a guarantee a home’s value will go up at all. When it comes to his Fiji resort, Robbins takes his own advice. Not only is the Namale Resort and Spa one of the millionaire’s favorite places to go to for a vacation, but it also has the bank account-building bonus of commanding between $1,244 and $2,500 per night for all-inclusive accommodations for two.
