Are You Broke, Average Or Wealthy? Dave Ramsey Host Breaks Down the Financial Behaviors That Define Each Class

George Kamel, a popular host on The Ramsey Show, has made quite an impression through his financial advice. Yet, on his own YouTube channel, George digs even deeper, shedding light on questions like: "Are you broke, average or wealthy?" He breaks down behaviors that set apart these financial categories in the video. 

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Traits of Those Struggling Financially

Kamel starts with the "predictable money traps" that often ensnare those struggling financially. "One of the things I hate with a specific and fiery passion, other than the new iOS update," he quips, "is the predatory system designed to take advantage of people struggling financially." He dives into payday loans, which he describes as legalized extortion with interest rates that can soar up to 664%. "Yikes," he adds with an eye-roll, emphasizing how they're designed to trap people in a cycle of debt. He warns, "Please stay away from these and tell your friends to never set foot in one of these buildings."

Kamel continues with title loans and rent-to-own schemes. "Guess what happens when you can't pay it back? Now they own your car," he says of title loans, pointing out the dangers of putting a car up as collateral. Rent-to-own setups come with similar pitfalls, preying on those with poor credit by promising home ownership but often leading to repossession when borrowers can't secure traditional financing. "It's predatory and evil," Kamel declares.

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The Habits of the Average

But what about the middle class? According to Kamel, some habits are equally predictable here, just subtler. One example: the pursuit of airline miles. "Credit card companies wouldn't waste their time handing out rewards if it didn't ultimately make them richer," he explains, noting how they profit from interest fees and higher spending from those chasing points. He adds, "At the end of the day, the juice ain't worth the squeeze on these rewards. Become your own reward system. Become your own bank."

Kamel also points out the financial pitfall of buying a new car. "Here's what that new car does – it makes you look wealthy even though you're middle class, struggling to get by," he says. "Nobody is impressed because behind the scenes, you've got to make that $600, $700 car payment and you're not getting ahead." He highlights the rapid depreciation of new vehicles: 60% in just five years. Leasing? Even worse. "It's the most expensive way to operate a vehicle," he emphasizes.

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Traits of the Wealthy

While Kamel's video centers on avoiding financial pitfalls, it inherently points to what sets apart the truly wealthy. They don't fall for high-interest shortcuts and they don't chase after every deal or shiny object. Instead, they focus on maintaining wealth through sustainable practices and resisting temptations that promise instant gratification.

Kamel's practical advice? Stop playing the financial games designed by others. "Become your own reward system," he repeats, urging viewers to take charge of their financial future by being deliberate and avoiding pitfalls that enrich others at their expense.

The wealthy often share habits that build long-term security – like living below their means, making smart, patient investments and avoiding trends that bring quick debt. They focus on assets that grow rather than on instant pleasures. To build similar habits, it's wise to consult a financial advisor who can tailor strategies to your goals, helping you focus on wealth that lasts instead of quick gains. 

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