The Ramsey Show’s George Kamel: Do These ‘Infinite Money Glitches’ Really Work?
The idea of stumbling upon some unknown money glitch and making millions is enticing, to say the least. Videos detailing these money hacks go viral on social media, causing viewers to wonder if they should try their luck with them or search for the next infinite money glitch.
George Kamel, a regular personality on the Ramsey Show, recently posted a YouTube video reacting to some of these viral money hacks. Here are his thoughts.
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Buying $1 Coins
The first infinite money glitch that Kamel looks at is a video explaining how people got rich from buying $1 coins. The video explains that the U.S. government pushed the idea of converting $1 bills to coins, as coins are cheaper to make. Those who wanted coins could buy them for $1, which seemed like an even trade. However, the narrator claims that people took advantage of this exchange by purchasing the coin with their credit card and racking up enormous amounts of credit card points that can convert into cash back.
Kamel breaks down the transaction by saying these buyers put thousands of dollars on their credit cards to get the 1% reward, but they also were being charged upward of 20% APR. While it’s possible to pay off your card completely and avoid paying interest, 50% of people don’t. Even though the government put a stop to this loophole, Kamel wouldn’t recommend trying it anyway due to the possibility of not being able to pay everything back in time.
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Creating Fake Employees
The next glitch centers around a Wendy’s manager in Louisiana. This manager created a fake employee and kept the wages paid to them. The narrator claims that the manager made around $20,000 from this get-rich-quick scheme before getting caught.
While the narrator labeled this move as somewhat smart, Kamel corrects him by stating it’s actually fraud that can land you in prison. This account did take place, and the fake employee’s name was William Bright. In the end, it’s important to remember that authorities arrested the manager, making this infinite money glitch not very infinite.
A Vending Machine Hack
A seventh grader found a way to profit from a vending machine. This particular machine refunded the coins fed into it but counted them as payment. Using that one coin, the seventh grader continuously made purchases until he’d acquired everything that the vending machine was selling. He then went to the cafeteria and sold the contents at lower prices, making $255 in total.
Kamel isn’t a fan of the move, pointing out that it’s just stealing. Because the video didn’t provide any source for the story, Kamel isn’t even sure it’s real. He also points out that this isn’t an infinite money hack. The vending machine owner will obviously notice that there isn’t any money to show for the sales. After the machine is fixed, the money hack disappears.
Cash-Back Rewards From Gift Cards
In a more complicated procedure, a video explains how a man made over $300,000 of tax-free money without breaking the law. With an American Express card that offered 5% cash back on purchases made at specific grocery stores, Konstantin Anikeev began buying gift cards. He exchanged these gift cards for money orders to pay off the original credit card debt.
Overall, the fees he acquired from the gift cards and money orders totaled less than his profit on the cash-back rewards. Anikeev repeated the process until he had spent $6.4 million on gift cards. The narrator states that he further benefitted from this money glitch because the IRS doesn’t tax credit card rewards as income. Ultimately, credit card companies discovered this loophole and removed gift cards from cash-back offers.
Even though credit card companies put an end to this particular trick, there are others like it. Kamel explains that this is manufactured spending, which can result in trouble from the IRS. The companies you use for this endeavor will also likely blacklist you for life.
Kamel points out other major risks that make this infinite money glitch a bad idea. If you attempt this feat, you may end up with significant debt. Often, you must spend large amounts in a short time to get signup bonuses that allow you to get cash-back rewards. On top of this, you’ll likely face legal issues that will destroy your credit score.
Better Ways To Make Money
By watching these videos, Kamel’s main takeaway is that people are willing to put a lot of time and effort into dumb things that won’t get them any richer. Looking for shortcuts is a fast way to never get rich. Kamel says there are many wrong ways to build wealth, and these infinite money glitches are just a few examples.
Building wealth requires sticking with legal and safe ways to make money. Kamel offers some suggestions on what to do.
Use a High-Yield Savings Account
High-yield savings accounts are online accounts that offer much higher interest rates compared to traditional savings accounts. Whereas traditional savings accounts might offer a 0.4% return on your investment, high-yield savings accounts can reach up to 5% interest. Using a high-yield savings account is a great place to store your emergency fund or money to meet other savings goals.
Invest In Retirement and Stocks
While high-yield savings offer good returns, investing in the stock market can provide you with up to 10%-12% returns. Investing in a mutual fund means the money you make will be reinvested and make even more money. However, benefiting from this compound interest requires leaving your money alone for long periods and investing over the long term.
Purchasing Appreciating Assets
One final piece of advice from Kamel is to invest in appreciating assets. These are assets with values that increase over time without you having to put in any effort. Examples include your home or rental properties. However, Kamel cautions against buying these assets if you’re not in the right financial position. For example, before making a significant purchase like this, you should be debt-free and have an emergency fund.
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