4 Convincing Financial Scams Americans Are Buying Into (And What You Can Do To Avoid Them)

An incredibly large sum of money is invested in keeping us in the rat race. The tricks to keep you in middle-class America— working to barely squeak by— are subtle and strong. Subtle because you quickly fall into a trap; and strong because it’s so hard to break out. Don’t fall for the financial scams circulating throughout society. If you want to truly be financially free, and in the wealth category of the 1 percent, maybe it’s time to question the status quo. It’s time to reevaluate how society heavily markets a certain way of living. So, what are the convincing financial scams that you are being sold, every single day, and how can you avoid these? Let’s look into it.

Buy A House

Many believe that buying their dream home is the sure path to living the american dream. The problem is that this is actually one of the biggest traps people can fall into. Individuals, couples, or families will stretch their financial limits and fall into large amounts of debt. Stacking on debt is how many feel trapped, subsequently leading to the need to remain in a job and continue to work for money instead of having money working for them.

Owning your house can be great. Don’t get me wrong, but you have to be wise and keep things in the correct order. There are costs associated with owning a home that might be higher than first considered. Take a look at this article that talks about the debate as to whether owning the house you live in is really a wise financial decision.

Debt Avoidance

In the wake of 2008, everyone was focused on getting out of debt— running from borrowing and completely putting off investing altogether. Dave Ramsey became popular during this time (which is understandable), but the most successful and wealthy still have debt. The debt by these individuals is known as “good” debt, which if you get a loan on a property you own and have someone renting from you to help you pay it down that’s good. Debt used to buy depreciating things such as cars, watches etc. is “bad” debt.  Often, ‘the 1 percent’ have millions or billions in loans. Real estate investor, Grant Cardone, says that, “Rich people use debt to leverage investments and grow cash flow. Poor people use debt to buy things that make rich people richer.”

College Degrees

How many of the smartest tech moguls, world influencers, and successful individuals achieved their degree? Well— maybe not as many as you would think. Sean Combs, Bill Gates, Daymond John and Mark Zuckerberg all dropped out of school. There are also many big real estate buyers who never got a degree. Many of the brightest minds stand by the belief that the education system in America is one of the biggest jokes (scams) of all. Personally, I struggled with the decision about college. I wouldn’t change the way I did things. You can find out my story of how I navigated this scam by reading this.


Saving is necessary. That I won’t argue as everyone needs an emergency source of capital saved, but you aren’t going to save your way successfully into a comfortable retirement. Say bank savings rates go up to 4 percent again— that STILL won’t provide enough to get you ahead and make you stay ahead financially.


You need to be aware to know what’s going on out there. Avoid the following the crowd and begin to think for yourself. If the majority goes in one direction, check into what the opposite path looks like. It’s likely that you will discover success in “the different direction.” I have done this in my life and truly believe in its validity.

Sterling White Real Estate Investor Blog