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Internet Scams We Are Still Falling For

Internet Scams We Are Still Falling For

In the old days, snake oil scams were incredibly prevalent–and successful. Anyone with charm and a way with words could waltz into a small town and swindle the entire population by promising eternal youth, extreme happiness, or riches beyond anyone’s wildest imagination.

You would think that with all the information available on the Internet nowadays these scams would be impossible to pull off. Unfortunately, thousands of people still fall for similar “too good to be true” schemes every day. Scammers prey on innocent people who put their trust in anyone seeming to be offering assistance all the time. As you browse the World Wide Web, be on the lookout for:

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Disaster relief scams

This is perhaps the most despicable method people use to swindle others out of their hard-earned cash. Whenever a natural disaster or terrorist attack occurs, the vast majority of the population is more than willing to open their hearts and their wallets to help those in need–and scammers know this. When Hurricane Katrina hit the United States, hundreds of people saw their fellow countryman’s suffering as an opportunity to profit. At a time in which people are most vulnerable, some scumbags only see dollar signs.

Collector’s items scams

Most people who collect specific items as a hobby do so with no ulterior motive in mind. Those who have amassed a collection of baseball cards or supposedly rare silver dollars throughout their lives aren’t looking to profit; for the most part, they want to share their collection with their children and pass down something that represents them. Of course, it would be nice if they were able to sell some of their collection if absolutely necessary. Unfortunately, when the time comes to cash in on their investment, many collectors are heartbroken to discover that their memorabilia is virtually worthless. And, of course, by the time they figure this out, the person who sold them the useless junk is long gone, and the poor collector is left with nothing.

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Auction scams

You’ve probably seen commercials for auction sites that offer iPads and Xbox consoles for a fraction of the retail price and wondered how they do it. Hopefully you stopped at this stage, realizing that if something is too good to be true, it probably is. But if you didn’t stop yourself and opened a $50 bid on a new $1,000 Macbook, you likely immediately regretted your decision. These sites often charge a monthly subscription fee to use their services–whether you use them or not. Not only that, but some of them also take the money you bid on an item regardless of whether or not you actually won the auction. Now you see how they can afford to “give away” these expensive items for a tenth of the price, right?

Free trial scams

I like to live by the old saying, “If it’s free, it’s for me!” I think a lot of people do. But you have to use discretion while living by this motto, especially when browsing the Internet. A lot of sites offer free trials for their services or products for one month, but they require your credit card information “just for verification.” What they really use your information for is to charge your card the minute your free trial period runs out and the paid monthly subscription kicks in. And–you guessed it–these subscriptions aren’t cheap. And they aren’t refundable, either. These companies bank on people forgetting to cancel their subscription within the first month. Then they count on you being too busy to deal with the hassle of complaining, so you chalk up the $49.99 fee as a loss and move on with your life. While it might not seem like making fifty bucks from a once-off customer might not seem like a lot, think about it. If only 1% of the population of America falls for the scam, the “company” will make about $150 million for doing absolutely nothing!

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Work from home scams

When you see the phrase “work from home,” you most likely imagine lounging on your couch with your iPad in your hand, the TV on in the background, and a cup of coffee (or a glass of wine) next to you while you breeze through your day. While working from home is certainly possible (ahem), it’s not like you won’t be working. But that’s exactly what many “work from home” scams promise–the ability to click around on your computer for an hour a day and spend the rest of your afternoon watching soap opera reruns while the dividends roll in. They’ll promise to give you “the secret” to making residual cash with minimal effort–but only if you pay an upfront, non-refundable fee. Of course, the “secret” usually involves some type of Ponzi scheme that requires you to either admit you’ve been swindled, or become a swindler yourself. Take it from me, there are much better ways to make a living working from home.

Featured photo credit: A Fool and His Money / David Goehring via farm4.staticflickr.com

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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