3 Financial Mistakes EVERYONE Makes
If you're putting money into a savings account, there's a good chance you're setting yourself up for a financial prison. These are the kind of huge financial mistakes that everybody's making.
There's three big ones that are the most common. Number one is savings. The problem that I have with savings is that it's an accumulation strategy. People take their cash, then they throw it into the savings account in case of a rainy day. The problem is, when there's no rainy day, the cash is just sitting there doing nothing. It's not accruing interest at a very fast rate. In fact, the interest that your savings account accrues is slower than the amount of money you're losing to inflation.
The second one is taxes. Most people don't understand that filing as a w-2 is the most expensive way to pay your taxes. They just do it because that's the way they were always told to do. If you file as a business instead of as a w-2 employee, there's actually more deductions that you can take which will save you potentially thousands and thousands of dollars on your taxes every year.
And the third one is education. I think people get this idea in their mind that they need a degree to be successful. The problem is that most degrees cost you tens of thousands, if not hundreds of thousands of dollars. A lot of people get in debt to get them, and then that piece of paper we take to a job that makes you on average from to $40,000 to $60,000 a year.
The most successful people are entrepreneurs. These are people that are self-educated. They go out and find the education that they need that isn't necessarily always traditional, they make infinitely more than your average employee does, and they didn't have to go get a $50,000 student loan to get started.