In this episode, A.B. Ridgeway dives deep into the truth behind cash back credit cards. While credit card rewards seem enticing, they may actually lead to hidden losses when fees outweigh the benefits. A.B. provides actionable advice on when to use credit cards versus debit cards, and how to avoid unnecessary costs for convenience.

3 Key Takeaways

1. Cash Back Isn't Free Money
   • Cash back is essentially a discount, not extra income. You could still be paying more through hidden processing fees.
2. Processing Fees Eat into Rewards
   • If a purchase involves a 2.49% processing fee but only earns 1% cash back, you are losing 1.49% of your money.
3. Use Credit Cards Strategically
   • Credit cards offer fraud protection, but they shouldn’t be used for every purchase. Large or recurring payments are often better handled through a debit account to avoid fees.

3 Memorable Quotes

1. “Cash back is nothing but a fancy coupon—just paying a little less.”
2. “Why pay a couple hundred extra dollars to get $150 back of your own money that you didn’t need to spend in the first place?”
3. “We are paying for convenience—how much is that convenience worth to you?”

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📖Free E-Book- 4 Pillars to Christian Investing: https://mailchi.mp/abrwealthmanagement/christianinvesting

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

In this episode, A.B. Ridgeway dives into the lack of financial literacy education in the U.S. and its consequences. He reflects on how credit cards are introduced to students before they learn the basics of budgeting, saving, or understanding interest. A.B. explores practical steps to reverse this trend and empower listeners to become more financially literate through informed choices and better saving habits.

3 Key Takeaways

1. Lack of Early Financial Education is Costly
   • Most people enter adulthood without essential financial skills. This contributes to debt accumulation, with Americans now holding over $1 trillion in credit card debt.
2. Inflation Erodes Purchasing Power
   • Savings accounts with low interest rates lose value over time when inflation rises faster. You must invest or seek better returns to avoid losing purchasing power.
3. Financial Literacy Requires Continuous Learning
   • Financial knowledge isn't static. The ability to learn, unlearn, and relearn is essential for adapting to changing economic conditions and avoiding costly mistakes.

3 Memorable Quotes

1. “We were introduced to credit cards before we were introduced to savings accounts. And that is a scary thing.” – A.B. Ridgeway on the dangers of early exposure to debt without financial education.
2. “Illiteracy is no longer the inability to read and write, but the inability to learn, unlearn, and relearn.” – A.B. Ridgeway on the importance of continuous education in personal finance.
3. “You cannot save yourself from inflation.” – A reminder that saving alone won't protect against the loss of purchasing power due to inflation.

Tune in to this episode to gain a deeper understanding of how financial literacy can empower you and future generations to make smarter financial decisions.

💵Sign up for a Christian Finance Consultation and create your Financial Plan Today!

https://calendly.com/abridgewaywm/consultation

📖Free E-Book- 4 Pillars to Christian Investing: https://mailchi.mp/abrwealthmanagement/christianinvesting

🏠 Visit our Website: https://www.abrwealthmanagement.com

*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

Video/Audio Credit: VOX

In this episode of Financial Advisors Say The Darndest Things, A.B. Ridgeway breaks down the essential steps for deciding if hiring a financial advisor is the right move. He discusses key life changes—like having a baby, marriage, or retirement—when financial advice may be most beneficial.

You'll learn about different types of advisors and when to hire one: proactively before a major decision or reactively after. A.B. also explains various payment structures, including hourly rates, flat fees, and assets under management (AUM), weighing the pros and cons of each. With practical insights, this episode will help you understand how to get the best value from your advisor and avoid costly mistakes.

Whether you’re thinking about rolling over your 401k, planning for home improvements, or just want to strategize better for the future, this episode equips you with the tools and knowledge to confidently decide if and when to engage a financial advisor.

Key Takeaways

1. Timing Matters: Hire Advisors Proactively
   • It’s better to hire a financial advisor before making big financial decisions (like buying a house or vehicle) to avoid costly mistakes and lock in better rates. Reactive help might not fix pre-existing issues.
2. Flexible Fee Structures to Fit Your Needs
   • Financial advisors offer various pricing models: hourly fees, flat fees, and asset-based fees (AUM). Each has pros and cons, so it’s essential to find the one that matches your situation and budget.
3. Financial Advisors as Strategy Experts
   • A good financial advisor can provide strategies beyond traditional savings, such as maximizing investments or minimizing tax liabilities through careful planning.

Memorable Quotes

1. "Having a financial advisor to guide you through different strategies is actually a good idea."
2. "I think you should hire them before, because if you hire them after, everything is going to be reactive instead of proactive."
3. "When your portfolio does well, your fees go up—but so does your wealth. You keep 99%, and your advisor gets 1-2%."

💵Sign up for a Christian Finance Consultation and create your Financial Plan Today!

https://calendly.com/abridgewaywm/consultation

📖Free E-Book- 4 Pillars to Christian Investing: https://mailchi.mp/abrwealthmanagement/christianinvesting

🏠 Visit our Website: https://www.abrwealthmanagement.com

*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

Audio/Video Credits: Today Show