6 Money Traps The Middle Class Is Falling For

6 Money Traps The Middle Class Is Falling For

George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.

This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.

[beth]

Today at noon I’m heading to the bank to pay off my mortgage. That’s the last loan I’ll carry for the rest of my life. Yippee

[brandonb]

No student loans, no car loans, no keeping up with the Joneses - but I do have an air fryer that I love.

[roarrman]

1) Student Loans
2) Auto loans
3) Buying too much house
4) Trying to Game the credit card system
5) Get rich quick traps
6) Keeping up with the joneses

[freedomring]

the biggest trap of all .. listening to broke unsuccessful people tell you how to be wealthy and successful

[ericmoore]

$38, 000 paid off. It really was not that bad to pay it off. Just live like a college student for awhile. People give up so easy.

[lindadorman]

More middle-class traps: buy now/pay later, payday loans, layaway, zero down programs.

[LoveOnTheEdge]

Another trap we fall into is overpaying for day to day things like groceries from a particular grocer chain.

[RRASK]

Pro tip: if your sticky hand is no longer sticky, rinse it off under the faucet, let it air dry, and it’ll be like new.

[barttfisher]

Very clear and helpful. thanks! I'm working extra to keep my ROI flowing into my mortgage payment. it's the last piece of debt i have and i'm a bit overeager to see it gone. Any index fund or stock tips to help that get done?

[allaboutroofing]

Being house poor for about 5 years in the beginning was the best "mistake" I ever made. Everyone tried talking me out of buying a house at 20 years old too, but again, it worked out exceedingly well for me. I now own a 800K home outright at 45 and just bought the house next door.

[brandymeidl]

Honestly, I'm so used to being frugal now it's becoming a way of life. It's ok to buy nice things! Gives me time to think if i really want them. I think that's a good thing! Gives me peace to pay in cash and not rely on debt. Be in the driver's seat. ☺️

[Mrcool]

George is so talented and is giving such good advice. My wife and I have been debt free for 2 years (house and all) and we spent 4.5 years on the Ramsey plan and beans and rice. You can do it and the peace of mind is worth all the blood, sweat, and tears it took to rip off the chains of debt. You can do it!

[DJSliick]

Also, a trap could be when the middle class make more money (like getting a raise), they spend more money still living paycheck to paycheck.

[twiga]

I just got my student loan forgiven because I worked in public service for years. If I had to do it again, would go to community college instead. Student loans are not worth it anymore.

[sherryie]

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

[jacqjacq]

This Jones ain't broke... baby step 7!! Thank you Ramsey team, and you too George!❤

[aliciaeasterwood]

Air fryer is legit! I use it daily.
The housing is definitely hard to overcome with the comparison trap. Praying God daily to keep focus in alignment of His will.

[elizabethsaviteer]

"Is that simple, and it's that hard" so true! Thanks for another great video!

[CYCO]

Money Trap of the Middle Class: Using, or utilizing financial gifts poorly. My wife and I are on baby step 4. I'd like to think we achieved this all on our own, and entirely without help, but part of what got us there, is that we were given a moderate sum... not huge, but a chunk of change as a Christmas gift several years ago. We could have just gone and bought a new TV, new furniture, etc. and blown through all that $ on 'stuff' we didn't need. Instead, it went towards paying off our car, putting a larger down payment on our home, and expanding an emergency fund when the debt snowball was finished. Years later, we received another gift as part of an estate settlement... but because we were smarter then, we can then use that $ to expand savings goals, to invest, to give some, and maybe to have a little fun.

[bigcahuna]

#7 - Eating out half of your meals instead of eating at home. Most middle class can afford to eat out every now and then, but not frequently. Middle class people in the 50s and 60s did not eat out anywhere near as much as the middle class does now. Put that air fryer to good use!