Warren Buffett Say Poor People Waste Money on 12 Things, Our Experts Share Their Thinking, Part 1
by Team Sammy
Ben and Buffet
In a recent Go Banking Rates article, Warren Buffett provided his insights on imprudent spending, pinpointing 12 common expenditures that often burden those with limited financial resources.
Eager to explore this crucial subject further, we reached out to several personal finance experts and community leaders, inviting them to contribute their perspectives.
Now, let's delve into the collective wisdom of these experts as they share their thoughts on seemingly "small expenses" people commonly squander money on. You can find Buffet's list at the end of the article.
Amit Bansal, Director, Center for Financial Health and Wellness, Oklahoma State University
Using payday loans or credit cards with high interest rates for emergency funds is typically not a good choice. It can easily lead to a cycle of debt. Some of the payday loans can have triple digits Annual Percentage Rates (APR). The high interest compounds quickly, significantly increasing the debt owed and often trapping borrowers in a cycle of borrowing and repaying. This system exacerbates financial instability among the poorest, who may have no other options for accessing credit, thereby deepening their economic hardship.
Discover more about Amit by visiting the Oklahoma State University Center for Financial Health and Wellness website.
Patrina Dixon, CFEI, RFC, Founder and CEO, It’$ My Money®️
Purchasing cars with a high interest rate due to poor or bad credit history. It is best to work to clean up or repair your credit so that when financing a car you are not paying a high interest amount over the price of a car. If your interest rate for the purchase is double digits, and you can wait to make the purchase then take some months to work on increasing your credit score then you will find you can get the same vehicle for less interest which ultimately will save you dollars in the monthly payments and for the life of then loan
Learn more about Patrina by visiting https://itsmymoney.info
Peter Kwado Asare Nyarko, Co-Founder & Executive Director Center for Financial Literacy Education Africa
Impulse buying is a spending mistake. It's a very real affliction that many people experience worldwide.
Impulse buying is simply purchasing something on a whim, without any planning. You might buy on impulse at the grocery store by adding things randomly to your trolley, or you might be an impulse buyer on social media or via various online shopping platforms.
Ultimately, there are many different types of impulse buys. But the first step toward solving this issue with frivolous spending is realising that you're doing it.
Read more about Peter by visiting www.cfleafrica.org
Rahkim Sabree, AFC®️
Sometimes it’s not overspending, but not spending at all that can be a problem for low income families. Avoidant behaviors like ignoring bills, not picking up for debt collectors, or delaying payments can be the result of past or present financial trauma.
Individuals may hold on to their money until they feel forced to make a necessary or minimum payment, often resulting in late fees or interest charges due to a fear of not having enough or concern around making it until their next paycheck comes in.
Find out more about Rahkim by visit his website rahkimsabree.com
Buffet's List
Neglecting and not investing in education, personal development
Relying on credit cards
Frequenting bars and pubs
Chasing the latest technology
Overspending on clothes
Buying new cars
Unused gym memberships
Unnecessary subscription services
Over-reliance on skin products
Regular nights out
Gambling
Smoking
Read more of Buffet's thinking in the Go Banking Rates article.