2. Watch for Red Flags: How to Spot Financial Fraud
Financial scams continue to rise, targeting people of all ages. Ric outlined seven red flags to watch out for: advisors who stress their honesty, request direct payments, provide their own statements, or promise guaranteed returns. Avoid any investment you don’t fully understand. Always request a second opinion and use services with third-party, independent custodians. If it feels too good to be true, it probably is.

3. Automate Portfolio Rebalancing
Portfolio rebalancing is key to long-term investing success. It ensures your portfolio doesn’t become too risky or too conservative by regularly selling overperforming assets and buying underperformers. Ric recommends using your 401(k)’s automatic rebalancing feature if available. This “set-it-and-forget-it” strategy helps maintain your risk tolerance and supports the classic rule: buy low, sell high.

4. Breaking Free from Financial Abuse
Rene Renick of the National Network to End Domestic Violence highlighted how financial control is a common tactic used in abusive relationships. Financial dependence can trap victims. Steps like opening a separate bank account, saving small amounts of money, and gathering documents like pay stubs and bank statements are powerful first moves. Resources like the National Domestic Violence Hotline (1-800-799-SAFE) and nnedv.org provide crucial support.

5. Say No to Reverse Mortgages on Non-Primary Homes
Reverse mortgages are often marketed as easy cash, but they can be a trap—especially if the property isn’t your primary residence. Ric advised against using a reverse mortgage to pay off credit card debt. Instead, consider financial counseling and behavioral changes to address compulsive spending. Tackling the real problem will put your family on a more sustainable financial path.

6. Don’t Time the Market—Stay Invested
Missing just a few of the best-performing days in the market can destroy your returns. For example, in 2010, all of the Dow’s 14% annual gain happened in just four days. Ric’s advice: don’t try to time the market. Consistency is your best friend. Stay invested to ensure you don’t miss out on growth.

7. Improve Your Financial Literacy
Financial knowledge is your first line of defense. Educate yourself on how money works, the risks of debt, and how to invest wisely. Ric recommends visiting TruthAboutMoneyTV.com for a deep dive into personal finance topics and tools. Initiatives like the Jump Start Coalition for Personal Finance Literacy aim to bring these lessons to schools and communities nationwide.

Financial Confidence Starts with Education

Whether you’re managing credit card debt, preventing fraud, or learning how to grow wealth, financial education is the key. Stay consistent, seek out resources, and empower yourself with the knowledge to make smart financial decisions.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Build Wealth and Protect Yourself: Financial Literacy, Debt, and Fraud Prevention appeared first on ROI TV.

Here’s a breakdown of the most effective strategies to take control of your money, stop living for the next payday, and start building real, lasting wealth.

1. Recognize the Cycle—Then Break It

Millions of Americans struggle to make ends meet each month. But that cycle can be broken. It starts by recognizing that money management isn’t about how much you make—it’s about how you use it.

Changing your financial future doesn’t require luck. It requires a system—and commitment to follow it.

2. Set Up Three Separate Bank Accounts

Start with structure. One of the most practical first steps is to open three dedicated accounts:

• One for spending (bills and essentials)
• One for investments (to build future wealth)
• One for savings (your financial cushion)

Keeping your money in separate accounts reduces temptation, increases clarity, and helps you prioritize long-term goals over impulse purchases.

3. Follow the 75/15/10 Plan

This simple framework gives every dollar a job:

• 75% of your income goes to spending (needs and lifestyle)
• 15% goes to investments (stocks, ETFs, real estate)
• 10% goes to savings (emergency fund)

If your current expenses exceed 75%, it’s time to trim the excess and reprioritize. Remember: saving and investing should never be optional.

4. Automate Everything

Don’t leave your future up to chance—or memory.

Set up automatic transfers from your checking account into your investment and savings accounts. This removes human error and ensures you consistently build wealth every month.

Use banks or brokerages that allow:

• Free recurring transfers
• Automated investment plans (like dollar-cost averaging)
• No minimums or fees for basic transactions

5. Be Smarter About Spending

Impulse buying is the enemy of long-term success.

Try these proven tactics:

• The 24-hour rule: Wait a day before making non-essential purchases
• The Rule of Five: If you can’t afford five of something, don’t buy one
• Need vs. Want: Prioritize essentials and delay luxury items

Financing should only be considered for appreciating assets (like a home). Never finance liabilities like clothes, gadgets, or cars unless absolutely necessary.

6. Know the Difference Between Assets and Liabilities

This mindset shift is critical to wealth building.

• Assets = things that put money in your pocket (stocks, rental property, businesses)
• Liabilities = things that take money out (cars, consumer debt, unnecessary subscriptions)

Wealthy individuals focus on acquiring assets. Broke individuals collect liabilities. Which side are you on?

7. Choose Your Investment Strategy: Active vs. Passive

There’s no one-size-fits-all, but every investor needs to start somewhere.

• Active investing: Researching specific companies (e.g., AI startups or tech stocks), higher potential returns—and higher risk.
• Passive investing: Broad, diversified funds like SPY, VOO, or VTI, offering lower risk and long-term stability.

Whichever you choose, adopt the Always Be Buying (ABB) strategy—invest consistently, even during downturns.

8. Understand Real Estate Investing

Real estate is a powerful wealth builder—when done right.

• Active investing: Buying and managing properties yourself (higher risk, higher involvement)
• Passive investing: Joining syndicates or using platforms like Fundrise or REITs for hands-off returns

Do your research, understand the risks, and make sure the numbers make sense before you commit.

9. Build a Real Emergency Fund

Your savings should be your safety net—not your primary wealth builder.

Aim for:

• 3–6 months of expenses if you’re young and single
• 6–12 months if you have a family or more responsibilities

Once your savings are where they need to be, redirect excess cash into investments to build long-term wealth.

10. Define What Wealth Really Means

Wealth isn’t a dollar amount—it’s freedom.

When your investments cover your monthly expenses, you’ve reached financial independence. That’s when work becomes optional and you’re truly in control.

But to get there, you need a system—like the 75/15/10 plan. You need discipline, automation, and clarity about your priorities.

Final Thoughts: Start Small, Stay Consistent

No matter where you’re starting, the key to escaping the paycheck-to-paycheck cycle is structure + consistency.

• Open those three accounts
• Automate your savings and investing
• Learn to spot assets vs. liabilities
• Commit to building wealth with every paycheck

The road to financial freedom isn’t about being perfect. It’s about sticking with the plan—even when life throws you off track.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post How to Break the Paycheck-to-Paycheck Cycle and Start Building Real Wealth appeared first on ROI TV.