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Read on to learn about twomiddle-class money traps and how to beat them.
Money Trap No.
Chan cited the 0.1% figure, but the national average isaround 0.45%, according to other sources.
If youre keeping your money in a typical low-interest savings account, its not working for you.
Its working for the bank.
Worse still, youre actually losing money.
So, how do you remedy this?
How To Beat This Money Trap
Chan offered a good solution:high-yield savings accounts.
These kinds of accounts, typically offered by online-only banks, pay interest rates above 5%.
Money Trap No.
2: Not Understanding How To Leverage Debt
Most people have apretty straightforward relationshipwith debt.
The truth is a bit more complex than that.
At the same time,not all credit card debtis bad, Chan said.
Be careful, thoughtful and realistic before borrowing for education.
The same rules apply tocredit card use.
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