We count on banks to keep our money safe, but that's not really what they're best at. The financial sector has doubled as a portion of the economy in recent decades, and that's not because they're so good at putting your needs first. It's their job to put your money to work for themselves, and if you aren't careful, they will do everything short of turning you upside down to catch the change that falls out of your pockets. Here are six ways that your bank can turn your money into theirs.
Anyone who's worked in retail or fast food should be familiar with the upsell. "You shoud really get the warranty for that." "The large is only 89 cents more." "Sure, eight inches is probably enough... but with the 10-inch you know you won't be disappointed." But banks have taken that game to the next level. All you have to do is upgrade to a deluxe savings account and you can get compound interest, a the platinum credit card with a higher limit, and a free toaster. Just read this 30-page contract which lays out that the credit card interest doubles after 30 days, but as long as you always keep your account balance above $1,435, and do five PIN transactions and seven signature transactions each month, and never make a withdrawal on a Tuesday, you'll never be hit with any massive...
Do you want to use an ATM for a different bank? That different bank is going to charge you a fee, but guess what? So is your bank. Why? Because they can. Were you not ready for that? Maybe you're cutting it close before your next paycheck? Well now you've earned yourself an overdraft fee, which is to say that you ran out of money, so your bank is going to charge you $35. Unless you also use that card to buy a pack of gum. Then it's another $35. Your monthly Netflix charge comes through the same night? That's another $35. Some rich asshole actually cashes the 13-cent check that you wrote as a joke? $35. Good luck hanging onto your paycheck with all these fees racking up! With very few limits on banking fees, is it any wonder they've been shooting through the roof?
The Wells Fargo fake account scandal became huge news when it was revealed that their sales staff was being pressured to meet quotas that basically guaranteed they would be adding accounts for customers that didn't want them. But Wells Fargo was caught, they paid the fines, and they launched a tone deaf apology campaign. So, story's over, right? Not quite. Turns out that if banks can do some sneaky fraud and not get caught, they absolutely will. Wells Fargo is not the only culprit. You could have fake extra accounts feeding off your real one right now.
If you were a bank, and you didn't want to limit yourself to making loans only to customers who could afford to pay those loans back, what would you do? If you answered, "Give out predatory 'subprime' loans with surprise balloon rates," congratulations! You just triggered the 2008 Housing Crash. And if you thought that banks would have learned their lesson, you obviously don't know that they've been doing the exact same thing with car loans. And now car loans are going into default at record rates. Which is a great sign of things to come...
Bailouts and Subsidies
Well, at least if the banks set us up for another financial crisis, they'll face the consequences, right? Hahahaha! Good one. The great thing about the growth and consolidation of the banking industry is how many banks are now "too big to fail." And they have such powerful lobbies that regulation is not even on the table. The result is that banks can use your money to be as reckless and risky as they want, and if anything goes wrong, they can count on tax payer money to come to the rescue. And on top of that, they also get some annual government subsidies, just for being who they are. Cool.
If you thought it was only customers and tax payers who were getting ripped off by the banks, you thought wrong. Even the bank employees are getting their pockets picked in the form of wage theft. Banks are some of the worst culprits in terms of withholding overtime pay.
So the next time your bank is ripping you off and you call to complain, remember not to direct your rage at the employee on the other end of that call. Just take a deep breath, close your account, then pull up a floorboard to squirrel away your cash.
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Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.