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Hes dedicated his career to helping people achieve financial freedom and avoid destructive debt.
Here are thetwo tips that will keep you out of debt.
The Danger of Credit Card Debt
Credit card debt is what many money experts call bad debt.
Average credit card rates hit 21.76% in August 2024 a jump of more than 6.5% since 2019.
Kiyosaki shared these tips to help consumers minimize their credit card use and keep more of their money.
Going cashless may be convenient, but it leads to thoughtless purchases, especially on a smaller scale.
The problem is that those purchases add up.
With cashless spending, its easy to miss how those micro-spends pile up.
Thats why Kiyosaki recommends using cash for anything under $20.
You become more aware of your spending and have to plan for it.
If you dont have the cash in hand, you cant make that purchase.
It adds approximately 20% to the total.
That 20% comes from compounding interest, Kiyosaki explained.
Now, your balance is $1,200.
By considering that extra 20% upfront, you become more aware of what your credit truly costs.
For that strategy to work, you gotta charge only what you’re free to afford.
In other words, imagine that your credit card is a debit card.
If the money isnt in your bank account today, hold off on that purchase.
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