Part 3/13:
The problem with high-interest credit card debt, often exceeding 20%, is that compound interest works against the borrower, making debt harder to pay off. Wealthy individuals pay off their credit card balances in full, avoiding costly interest payments that drain resources needed for investment or savings. Instead, they understand the power of compound interest and use it to grow their wealth.
2. Glamour and Personal Maintenance
The spending on appearance—such as manicures, jewelry, fashion, and grooming—can be a drain for those who can't afford it. Mathis suggests that many people waste money trying to look attractive or impressive without a corresponding return on investment, unless their careers depend on their appearance.