Why It Costs More To Be Poor (A Simple Explanation)
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- Опубліковано 25 сер 2019
- In this video, I will share six reasons why it is more expensive to be poor. This is not a political video. I have no agenda and frankly no political affiliation. The truth is that being poor can, in many cases be more expensive than being wealthy.
Luckily for us, the majority of the six reasons explained in this video can be prevented or counteracted in one way or another.
Be sure to subscribe to the channel and leave a like on the video so that we can continue to create content!
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I am not a financial advisor. The ideas presented in this video are personal opinions and for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.
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Hi everyone. What videos would you like to see next?
Who is going to FinCon in Washington D.C. September 4-7? You can pick up tickets here: finconexpo.com/fincon19/
Have you talked about what banks are better to bank with?
How do you know when you can afford to buy something?
How to recover after having ssn and other information stolen
You could make a video about ways to go through a recession as painless as possible. There are countless blogs about it, but if you could find something new or sum it up, that would be great. Cheers!
Loving your topics. After your last video on beginner credit cards I sort of thought you might eventually do a video on business credit cards. Personal credit cards for those with “Good-Excellent” credit scores would also be helpful. Wish I could go to FinCon this year but unfortunately it conflicts with previous plans. I totally have to go next year. Thanks for mentioning it to your audience! I’m sure everyone would love to hear about your experience.
This literally wouldn't be a problem if schools taught financial literacy and real life skills as well as insight on aspects such as taxes, mortgages, loans, wealth, financial independence. With a little bit of financial advice so many people would be much better off. It's a shame really.
You speak the truth
@@NateOBrien Only facts ;)
Schools will never teach it. In fact it is governed
Billy Paffas yep, government benefits from the more people who aren’t financially literate.
If they taught Financial literacy in schools, Many Colleges would've gone bankrupt ages ago since most students would know that college is a rip-off in many situations.
*Life is a dream for the wise, a game for the fool, a comedy for the rich, a tragedy for the poor.*
Smart man
I feel judged, lol. I'm no fool :P
TRUE
Neat!
Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor --James Baldwin
What I learned from this Educational Video? Nate DOES NOT have a Political Agenda
I hate how polarizing politics are
I think he is republican.
@@mysterybuyer3738 He is like Dr House, equal opportunity exploiter.
😆😆😆
It's a pity to see the people who are most in need to be abused the most by systemic exploitation. Hopefully, people use this kind of videos to grow and help others!
Thanks for watching the video. I hope that one day schools will teach personal finance
I love how Nate actually takes context in consideration when discussing these topics. It's so refreshing. There are too many people on UA-cam and elsewhere telling poor people horrible things and making them feel guilty. Guess what? That kind of talk doesn't lead to changes in behavior. Change talk can start in many different ways and one of them is compassion, understanding, and speaking the truth. Someone seeing this video will be much closer to improve their lives than someone watching all those other a-holes on UA-cam being willful ignorants. Thank you Nate. You're my favorite financial guy on UA-cam so far.
I noticed this same thing when I was poor and I always used to say it!!! Being poor is literally more expensive than being middle-class or rich. When you already have money, it's easier to pay off your credit cards and other debts which means you'll have a higher credit score, which means you will qualify for lower interest rates which will save you even more money, and if you're renting a place you might even get to pay a lower deposit just for having a better credit score. It's easy to get money and build wealth when you already have money. It's hard as hell to dig yourself out of poverty when the entire financial systems are already set up to essentially benefit the rich (or those who already have money).
It's hard to build wealth but being poor is also hard. Choose your struggle.
@@bretroberts950 True. I chose to build wealth! Came from a very poor family and working my way up, with no family help at all.
Never had a credit card and never had any debt. I learned to go without. Comfortably retired.
Life is expensive. Take advantage of every free lesson. 💡
Free info is king
Nate O'Brien ::: In the total absolute of the word!!
What if u suck a skool
I've recently found your channel, and I instantly felt the difference from other channels where they just flaunt their wealth or give you obvious but hard to do tips. Instead you come across very genuine and really provide realistic solutions for everyday people. Keep up the good work man!
Having an emergency fund would fix most of these problems but it can be so hard to build one up!
One dollar at a time!
One of the best ways to afford an EF, is to avoid being consumed by consumerism.
The problem is some people might abuse it
Money makes you more money. The rich get richer as long as they continue to invest in assets.
We need personal finance taught in schools
I have $16,000 in Stocks that pays Dividends and I started 1 1/2 years ago. Its awesome
Well someone's been reading rich dad poor dad
@@Ali-rb3ir name of the game!
@@ALCAN52 amen
Thank you for this video! Gives so much insight into how poverty is so cyclical and it’s a trap that’s hard to escape. I remember my dad telling me how he got his last car because it was $0 down payment and he couldn’t afford a down payment after his old car broke down. He had to pay so much in interest for the past decade :( anyhow, I’m just glad that I’m learning a lot from you and other youtubers on how to be wise with my money now that I graduated college and have my first job!
Nate is underrated
Nate I totally agree! Thank-you for explaining it so well. I will definitely share this with my audience for sure. So many of us have been taught that being rich equates to being a 'bad person', so with videos like this one we can start to change that mindset and show the true realities, like you mention, how being poor actually costs you more! If you were rich instead, you could do so much more good in our world. I always tell me students that money is like a hammer, it's neither bad nor good, it's just a tool. If you have a lot of money and you're a bad person, you will be able to do a lot of bad in our world, but just as equally, having a lot of money and being a good person, means you have the opportunity to do a lot of good in our world. So stop being poor, feeling like it's a more 'moral' option and learn from Nate, being poor only costs you more, it doesn't make our world a better place. That's why I focus on teaching my students how to build a strong, healthy, wealth mentality and I love videos like this one that help show the actual facts being the truth of being poor and being rich. Great job Nate! Hugs 🤗😍😍
The dream of becoming rich is the demise of people who are not financially literate.
Well said.. a big problem is attempting to keep up with the joneses
Great content! I like how you break this stuff down in a way that's easy for anyone to digest. I also like how you strategically touched on the difference in money habits between lower income and higher income people. There are different types of thinking going on there and most financial gurus will talk about that. They'll compare the different types of thinking and behavior using terms like "broke mentality". Granted, they aren't wrong but I can see where some might find such language condescending or otherwise offensive. Your content seems more applicable to the everyday person as opposed to the would be entrepreneur hoping to become rich.
Edit: Creating wealth is hard but being poor is also hard. Choose your struggle.
I totally agree! And I truly believe we need more financial education, because people in general don't care about their finances, they only care of how much money they make. Which matters of course, but it's not everything.
Financial education could solve so many problems
Solid video Nate, really thoughtful part about the decision making process that poorer people have to make and the lead onto the $0 schemes and predatory businesses are gold. In saying that I don’t like how some people make it an excuse to not improve themselves and dig themselves out of the financial hole they’re in. Seen it too many times when I was helping people in the legal sector who were 10-20 years older than myself. Also which books were you referring to in the video?
Credit Unions are thing. Gotta have options. Banks aren’t the only ones on the block.
Very true, I will make a video about this
I have used credit unions for three decades now!
No matter what, you will have the savers and the consumers; which side you choose is up to you. Glad I have friends who are aware of this matter as well. Great video, man. I was literally just thinking of this subject.
Very important topic Nate. Creating awareness, while imparting knowledge & understanding is definitely half the battle. If we can help one another in some small way, it’s much better than completely turning a blind eye to pervasive issue. On a side note: I totally give you props for managing to discuss this issue without acknowledging a political view. We could all tell how difficult it was for you.☺️
Thanks as always, Lisa!
Love the video! So many things people need to beware of here. Personally, I haven't seen a video like this, but it was extremely informative and beneficial!
Just curious, where do you get your shirts? Specifically the long sleeve single colored ones
h&m and uniqlo I believe he said
I worked part-time and raised 2 daughters without child support. After taxes and medical insurance, we lived on less than $15,000 per year. We learned to go without. Never felt deprived. Comfortably retired.
Lisa Servon's 'The Unbanking of America:How the New Middle Class Survives" is a really important read to understand how the traditional banking system has failed many in our country, and how this has paved the way for payday lenders and such. I highly recommend it.
Good explanation Nate! Your decisions can make you either poor or rich. Love from a small youtuber :)
Nate O’Brien, great channel 👍, just curious why you specifically list CIT bank for savings, any good reason? Would love to hear your take on them. Thanks
$0 dollar down is a huge SCAM if not explained correctly at the time of purchase. I’ve seen people get hit hard with retroactive interest after they fail to pay off the full amount in time ( beware everyone) and the bank fees is spot on! Usually the people with lowest income are the ones paying the most in bank fees! 🤯 great video Nate as always!
It really is sad
Can you talk more about stock markets? Like best guide for Robin Hood pleaseee and thank you
I never paid sales tax, because I live in NH. I never took out a loan or used a credit card - no interest rates. If I don't have the cash, I don't buy anything.
Well done. When I saw the title I wasn’t sure what to think. Done in a very respectful way
Appreciate it!
I really wish I knew about the things mentioned in this video earlier in my life... aka in high school! I legit did not know what student loans or savings accounts were until I was 19, which is terrible! My parents really didn’t teach me that much about finances either unfortunately, so I had to learn on my own (I found Dave Ramsey through YT lol)
Great Video💕 Very informative!
WASTED MONEY:
Gave rides to friends and family.
Gave my brothers a portion of my inheritance.
Bought sweaters that just stretched out anyways.
People stole, broke or lost a large amount of my things.
My boyfriend forced me to give my things to his friends.
My boyfriend made me pay for all the Xmas presents.
My boyfriend never paid for his share of the bills.
Paid for the bills at restaurants.
Believed in a bunch of liars, such as my ex-husband, boyfriends, friends, family, daughters, auto mechanics, financial advisors, lawyers, doctors, co-workers, neighbors, etc.
I'm happy that online banks are getting rid of a lot of the fees traditional banks have!
Are you going to Fincon now? 😱
Yes, I realized that it would be foolish to not attend Fincon
@@NateOBrien Awesome! I'll be there too
Still watching but I can already tell this is gonna be another great authentic video as always Nate 👍 let’s go 👊🏼
Thank you Oscar!
Economies of scale must apply to people too! :)
I've watched a few of your videos now. I just wanted to say that I greatly appreciate this, and I hope you keep up the good work!
Thank you!
@@NateOBrien ^-^
I’m in the Academy of Finance at my High School. It’s a Top 3 Finance Academy in the US! I feel so prepared to buy a house, invest and I have many important certifications. I am also practicing and getting certified to be able to do my own taxes!
this guy is really a good guy because he explicitly states he doesnt have a political agenda and isnt preaching a certain political view, making this video very reliable and unbiased. thanks a lot man, you're a really helpful guy
Appreciate it. This channel will always be the same. #1 goal is to provide value for free
@@NateOBrien Thank you :)
OTOH, he incorrectly calls out general sales tax (proportional, not capped) as regressive, while payroll taxes are actually regressive (capped, not imposed on wealth-based income, only). It could be less about political bias and more about general lack of knowledge, but either way it's not good.
I think state run lotteries is a regressive tax too. Only poor people participate in those , and they often spend big sums on them as they believe it is their only way out of poverty although the chances of winning it is nearly 0%.
I'm glad you're teaching this stuff man, love your content, keep educating!
I think that this video has very interesting content and watched several vids of other youtubers that give financial advise no one made a vid about this topic.
Haven't seen something like this on YT yet, nice one @nate!
Thank you Akash
I am watching from Romania and the tax system you are presenting in this video does not match(and other information as well) .I would like to understand more about dividents and how do they generate income.Keep up the good work!I am watching your channel with interest!
Thanks for the video! It will surely help many people to understand what's going on with their money
I truly hope so
thank you very much for sharing !!! Very interesting, your channel is so helpful for me !
Starting love your vids bro💯
Brilliant video! Learned a lot!
Thank you!
Great video! Very true points.
What great timing this video was! Thanks so much man! This motivates me more than anything to try and become financially free. I don't wanna be rich I want to make money myself and quit working a 9-5 to spend more time with my family. Because of you I was motivated to pick up a camera and recording and documenting my journey through UA-cam! -thankyou so much man! Keep the uploads coming👍❤️
🙏🙏💯
@@fractureDzn thankyou so much
Great lecturer! Great teacher! Thank you, Nate.
Thanks as always John!
Thank you for the video. :)
A simple, but elegant video thanks Nate!
Thank you!!!
Avoid high tax ratios.
Avoid high interest rates. Build a good credit score.
Avoid zero-down purchases with high interest rates.
Avoid bank fees. Comply with their policies.
Budget thoroughly. To save money, buy bulk at least expensive stores.
Great information, Nate! Thank you! Great inspiration to keep my UA-cam channel growing :)
Thanks Jackie
Very informative video! :)
Great video man
Auto-Smash That Like Button..
Great video, very good info.
Thanks!
Thanks for sharing your 2 cents about this.
Thanks for watching!
Awesome vid, Nate
Thanks Brandon!
Here's an idea that I've found helps with them bank fees. It's called budgeting properly first. And then, setting up a minimum account balance requirement. E.i.- Let's say that minimum account balance is set at $500 for your account to be free. You would then make sure you have more than the minimum account balance at all times. Any funds that is left after you've met the requirement is free cash.
Stay within a low tax-bracket. If you work over-time, it could you put into the next tax bracket where you would pay more in taxes.
Watching this video made me think of that Rush Card debacle a few years back. I felt so bad for those who were affected by it.
Where are the spreadsheets about budgeting?
Hey Nate, im in a weird situation right now. Im 20 yrs old and have $1k saved up so far. I dont make that much since I am working part time as I attend college. And I was wondering what should prioritize putting the $1k in? Should I open up a roth ira or should I put it in my wealthfront savings account? I already have 600 in my savings account. I need some advice!
Brian Alvarez its not enough
Jove Cayanan I know it’s not enough. I work and study 🙄
Good motivation for those in the lower class to increase their incomes
Thanks Justin!
Great video Nate, Love your insight on stuff like this!!!
Thanks Johnny!
@@NateOBrien Anytime and Every time. :)
A warning about buying food or consumables in bulk though. Ensure you will consume it before the use-by date. It's a waste in food & money to buy... like, a half-gallon pail of yogurt and throw more than half of it out because your family couldn't finish it.
Same thing with nonperishables. They can end up taking space in your home or garage, and have low or no resale value.
In Canada lower income people receive a sales tax refund from the Federal government every 3 months. It usually works out to between $20-$40 per month, depending on income. I wonder if any U.S. states also do this?
Nope
@@ALCAN52 Ugh, I live in New Jersey and I don't think I could retire here :( This is a nice area but the state government sucks.
Nope.
Anyone find the Excel sheets he said were in the description? 🤔
I have found credit unions better to bank with than traditional banks..less fees, better interest rates
Agreed
I find that also true here in upstate NY
No more like 100% interest or 1000% interest 400 dollar PlayStation you pay like 1200 furniture for 300 you pay about 1000 basically you pay triple or quadruple for these items stay away from buy here pay here and 0 down schemes!
You missed Inflation. It is the number one insidious factor that disproportionately hurts those in a lower income.
This is why a majority of my retirement portfolio is Wal-Mart stock, has been for 20 years, good returns
I'm dissapointed Nate didn't let the people know that taxation is theft.
Amen!
I love Dave Ramsey’s explanation of buying a home poor, Murphy starts living in your spare bedroom 😂😂
yes! Good ole dave
And there’s no room cause Sallie Mae already moved in 😂
Captain Vimes Boots Theory of Socioeconomic Unfairness.
Nice hearing you talk about me.
Any time!
Nate are you available for hire to look at my finances?
I am not a financial adviser. I make these videos for general educational purposes. I would suggest talking to a professional
No agenda is much worse than admitting what your preferrences are
u make 15 grand a year like minimal age so they dont get taxed a hole lot u make 60 k a year yes probably the highest tax if then when u start making more and more a year taxes get less and less
I thought the toilet paper effect was the nearer the end of the roll you are the quicker it goes!
Double meaning!
*yet another reason to increase thy inome* 💪
It's two important steps: budgeting/saving money and then finding a way to increase income!
@@NateOBrien tru
He's good looking!.!.
Crazy how the system is rigged to keep the poor poorer.
The real problem is the lack of financial education.
You're wrong about interest rates, low interest rate generates inflation which means it reduces the buying power of your dollar and it encourages people to live in debts instead of saving capital for investment.
Thanks for trying to keep the discussion apolitical, bad financial decisions will make you poor and keep you poor. It's not 'the man' or the system whose keeping you poor, it's a lack of financial education and in the information era ignorance is no longer an excuse.
Um go read a history book pretty sure it's the man and the system both keeping a certain demographic down
Hi Nate I recently opened a netsaver account after realising I can put away $400 a month 😃 and thanks heaps for the videos
Daniel -australia
The POOR keep getting POORER, and the RICH keep getting RICHER!! We’re all screwed!
I don't think we are all screwed
It’s your choice to stay poor or not.
Of course not I was being sarcastic :)
Solid Finance haha for sure man 😁
Poor people get Tax credit. Like Earned Income credit
U rock
If I’m being completely honest I was getting douchetuber vibes from your thumbnails but boy was I wrong. Sorry for making that assumption and thank you for the informative videos!
No worries Carl. Thanks for watching the video
Ohh the irony right now!
Please--in first 3 minutes he says 'not political'
You get the money from the poor, the rich keep it.
Cost of being poor
Watching your Video at 240p
👍
Thanks for watching the video!