Welcome to another Community episode! Today we talk about something a little bit negative, but the purpose is to try to let people know that we make mistakes and when it comes to investing that’s partly okay as long as we learn from it. Alvar and Michael will remember some of the worst financial mistakes and what they learned from them. Enjoy!
We also talk about:
- Ponzi and MLM schemes
- Red flags to check
- Evaluating p2p lending companies
Suspiciously high returns
The first type of mistake Alvar and Michale talk about is related to systems that promise unusually high returns and have a not so clear structure. From Alvar’s experience with multilevel marketing while he was a student to Michael’s adventures with cryptocurrencies, fraudulent activities present very similar traits and always try to use this promise to execute their scams.
Cars and insurances
From a car that breaks one hour after the purchase to an all-around German insurance that helped Mathias in more than one occasion, cars and insurances can hide many pitfalls and it’s easy to make mistakes. In the end two lessons can be learned here: avoid shady dealers and always read the fine print!
Managing money while traveling
A decision of the Indian government left Alvar without a way to get money in the middle of his trip, so he had to revert to creative ways to find resources that always ended up with paying some intermediaries. And the choice of an ATM instead of another could potentially make you lose money through very bad commissions. Again, always check twice while traveling.
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