I remember the day that changed everything...I had 10k saved and was proud of myself...and then realized I had 5k in debt...I thought "I'm basically paying 20% interest on my own money by letting the credit balance sit at 5k." so I paid off my cards and never went down that rabbit hole again
Beauferal It is never too late to start! Our household has paid off approximately $26k in 16 months by counting and creating our nickels! It is possible to beat the banking system! Five Cents Matter!
anyone ever wonder why basic finance is not required to graduate high school?? credit cards,mortages, interest and student loans etc...the basics. if kids had knowledge the banks would not be able to enslave them at 18... just a theory.
In australia the bank give you a dollarmite account in year 1 to promote saving. Theyve done the reasearch and found 1/5 of people never change banks. It scares me they do target marketing to kids of such a young age. Ps i have my account from year 1 and never left, and my daughter told me she has a dollarmite account... it scared me. I plan to teach her about finance, money and to avoid debt
My wife and I spent 2 1/2 years of intense effort to become debt free using the Dave Ramsey snowball method. I had a friend who approached me once we mentioned how excited we were to be debt free. He really seemed to be motivated and interested in becoming debt free. To get a gauge for his level of motivation, I asked him one question, “Are you willing to cut up your credit cards and never use them again?” That was pretty much the end of our debt free discussion.
we are getting into debt because we are told it's a great idea, and not dipping into your pocket to pay for things is a pleasant way of doing it, and, it's easy to lose track of how much you are spending, or wasting. it used to start with a mortgage, now it's student loans. debt is fine as long as you USE it, rather than just being a passive customer of the bank.
We are in debt because we want everything NOW. Most of my friends act this way. They will finance cars they really can’t afford and jack up credit card debt like there’s no tomorrow. I pay CASH for everything. This makes me think before I buy. I haven’t used a CC in almost 10 years and have somehow survived. Guess what- I have a healthy emergency and nearly $400K in net worth.
@@TheThelenita - if you’re directing that comment at me, let me respond in kind. If calling someone who has been very strategic with their money and subsequently built wealth “a snob” helps you sleep better at night - good for you. I am able to do things a lot of my friends can’t (to include helping others in real need) because I don’t have debt. I don’t have to budget around a car payment, credit card payments, in store charge card payments, etc, etc. my wife and I pay cash for EVERYTHING, or we don’t buy it. And yes, we have the money to enjoy life to the fullest and it’s not on someone else’s dime.
It's our responsibility to pay our debts, but it's also the government's responsibility to make sure that quality education is affordable. University costs are out of control. Students should not be graduating with six-figure college debt. That is a crime, and the burden is put on the working class. Medical care also should not put anyone into debt. Healthcare is a basic right and human need. Period.
Beeing from Germany I'm always surprised how people living in North America have a totally different approach on debt then us. For many of them it is just normal to constantly consume stuff they can't afford. If you can't afford it then you don't deserve it (yet)! Buying a house should really be the only time in your life when you buy something without having the money. Maybe it's just a cultural thing.
LOLOL. Please do. Then cut up the card and never use it again. I’ve don’t own a single cc and haven’t used one in almost 10 years. It’s a fallacy that you “need” a credit card. Don’t buy into this nonsense.
Wholeheartedly agree! My wife and I paid off over $70K in debt in about 2 1/2 years using this method. The feeling you get when you write that last check is beyond description. I couldn’t fathom every having another car payment or credit card bill.
My parents got a loan of $200'000 in 1996 to build a restaurant and hotel on a land they had bought with their own money. It was the first Italian restaurant in the country (Southern Europe), but soon enough, Italians and foreigners started returning to their countries and the restaurant was about to fail. We rented it to multiple entities during the years but they were never profitable. After 23 years, we just finished paying the interest, and we just started to pay the $200'000. At about $2000/month, we will be debt free in less than 10 years. Problem is, the actual tenant will leave in two weeks, and it will be very hard to find another entity willing to run their business there. Meanwhile, the hotel turned into a "residence" for students...we went from earning $50/night from tourists and businessmen, to earning $300/month from 2-3 students staying in each room.
there is, if you know how to avoid paying it back. credit isn't a loan, it's permission from a bank to create new money, it's a confidence trick to have to "pay it back", you gave money to the bank not the other way around, the way out of paying off credit card debt is to make the bank prove there is a debt, they can't, i've done this.
@Harry Nicholas - so basically, you’re a thief. You sign a contract to borrow money and pay it back at agreed upon time frames, and then purposely default. Congrats - you’re quite the role model.
Money in any bank account is never yours. You are loaning to the bank in return for a small interest. They take your money and loan it out a a greater interest.
also money in a bank account no longer belongs to you, if the bank refuses to pay out you haven't got a hope. also only 3% of money is cash, so if we all trot to the bank and withdraw notes they will run out in no time. 97% of money is electronic. also bills are not money, they are IOU's "i promise to pay the bearer on demand" ask the bank teller for "the sum of one pound" (or one dollar) and see what they do.
Thank you for these great videos We need more of this message to get out there Credit card companies are sharks wanting us to be indebted to them till we die
It is kind of sad that these basic tips from basic strategic analysis are now a TED talk. Institutions and governments surely love people living in automatic, never stopping and thinking the next step. I'm a "millenial", I figured all this out on my own, just taking the time to analyze different scenarios and an optimal solution based on the trend of each solution proposal. I then advised and taught some of my findings to my dad and other adults I've discussed these matters with, surprised that my father was so lost, having a major in business management (way closer to money management than my major in engineering). This isn't a matter of age group, professional training, or social level. I've received plenty of financial advise from relatives, that didn't hold one or two reality checks, but I appreciate them for the good intention. The best advise I've got from financial independence circles: "do your own research".
I don’t get how people can run up massive amounts of debt as if that’s “The American Way!” We have too many people that want to live like they make $150K a year while working a $12/job. It’s the whole “You never know what tomorrow brings. Why should I deny myself the finer things in life”. If they have to rack it up on credit cards - so be it.
Not only do they not teach money management in college, they promote debt. Walk on any college college campus in America, and you will find any number of cc companies giving out free T-shirts to get you to sign up for their wonderful 17.99% APR CARD. They issue out debit cards with the balance of your student loan after books and tuition and then charge obnoxious service fees to use it. Any wonder why these kids blow completely through their student loan balance? They young people start out their post college years strapped down in debt that can take 20 years to pay off. How is this good for our country?
@Second Act - I used to be on Active Duty in the Army. There was a time when Soldiers had a couple of cigarettes included in their field rations. Smoking was not only culturally accepted in the military, but pretty much encouraged. Thank goodness that has changed
Talking about a LAWYER paying off debt fast is like talking about a guy who goes $1M in the hole and comes up with the cure for cancer. Basically the ONLY reason she did it is because of what job she got. If she had done half of the debt and ended up with just a B.A. she would still have tons of debt.
But the only reason she had $120k for university was because she was doing law. Cut that in half in Canada for another degree and cut your income in half. Same effect.
look up "three letter process" if you want to get out of debt. do your research. banks, credit card companies and debt collectors are sloppy, the onus is on THEM to prove you have debt, and they don't usually have the relevant paperwork, you can, and i have done this, keep them tied up in red tape forever.
I don’t understand creditcard debts. I understand student debt and mortgage. But the rest.... I was brought up with the idea that you had to safe before you buy. That way you have some time to contemplate your spending: do you really need that car or that dress or the new playstation? I come from a very poor background and learned the value of money growing up. But somehow a lot of parents don’t teach their children how to manage their finances anymore. This is NOT the governments responsibility. Please parents: teach your children. ❤️
What if the responsibility for the debt was pushed back onto those who loaned the debt as well? Interest rates are a risk premium paid to a lender...they took a risk, the borrower took a risk. Who owns the risk in totality? Debt jubilees might be the only way to solve this systemic issue we have arrived at...
How is a debt jubilee fair for those of us who live within our means. Furniture twenty years old, vehicles 13 years old, no fancy vacations. Worked through school. It makes me mad when the overspenders whine to get their debt forgiven.
student loans are immoral, education is an investment, not a business, the ridiculousness of SL is that there are ways to avoid it, or make it easier, which just screams "we got this idea wrong" from the start. when i went to uni in the 80's i had my own money in the bank and i got a full grant, and went straight into a good job at the end of it, it's not like that these days. the other cause of debt is reagonomics, wages have not increased with the cost of living since the 80's, we should be earning ten times what we actually now are.
May I ask what area or city you buy in? I'm looking to get into rentals but everything in my area is too expensive to cash flow with what I have to put down
House payments in California are obscene My girlfriend and I are paying a total of 4400 dollars a month on our house I told her I want to sell and move out of outrageously expensive California She wants to stay here because her grown up kids live here
I remember the day that changed everything...I had 10k saved and was proud of myself...and then realized I had 5k in debt...I thought "I'm basically paying 20% interest on my own money by letting the credit balance sit at 5k." so I paid off my cards and never went down that rabbit hole again
Dave Ramsey. Act your wage.
The borrower is servant to the lender.
I like that! “Act your wage”
Great to hear this important message. I'm trying to manage my finances more sensibly and feel foolish about how much money I've wasted.
Beauferal It is never too late to start! Our household has paid off approximately $26k in 16 months by counting and creating our nickels! It is possible to beat the banking system!
Five Cents Matter!
Don’t feel bad we’ve all made the same mistakes
anyone ever wonder why basic finance is not required to graduate high school?? credit cards,mortages, interest and student loans etc...the basics. if kids had knowledge the banks would not be able to enslave them at 18... just a theory.
In australia the bank give you a dollarmite account in year 1 to promote saving. Theyve done the reasearch and found 1/5 of people never change banks. It scares me they do target marketing to kids of such a young age. Ps i have my account from year 1 and never left, and my daughter told me she has a dollarmite account... it scared me. I plan to teach her about finance, money and to avoid debt
That's what I really really want it to happen in our generation, money literacy at the junior high school curriculum.
I teach high school and we spend 9 weeks on finance. Kids don't care!
It’s all apart of the game ...
Dave Ramsey. Beans and rice, rice and beans.
My wife and I spent 2 1/2 years of intense effort to become debt free using the Dave Ramsey snowball method. I had a friend who approached me once we mentioned how excited we were to be debt free. He really seemed to be motivated and interested in becoming debt free. To get a gauge for his level of motivation, I asked him one question, “Are you willing to cut up your credit cards and never use them again?”
That was pretty much the end of our debt free discussion.
Discipline and practicality is often over looked when it comes to personal financial management.
The question to ask is - why we are getting into debt in the first place. The banking industry want you to get into debt.
we are getting into debt because we are told it's a great idea, and not dipping into your pocket to pay for things is a pleasant way of doing it, and, it's easy to lose track of how much you are spending, or wasting. it used to start with a mortgage, now it's student loans. debt is fine as long as you USE it, rather than just being a passive customer of the bank.
We are in debt because we want everything NOW. Most of my friends act this way. They will finance cars they really can’t afford and jack up credit card debt like there’s no tomorrow. I pay CASH for everything. This makes me think before I buy. I haven’t used a CC in almost 10 years and have somehow survived. Guess what- I have a healthy emergency and nearly $400K in net worth.
@@Ebayrocks99 Such a snobbism never fails to amaze me.
@@TheThelenita - if you’re directing that comment at me, let me respond in kind. If calling someone who has been very strategic with their money and subsequently built wealth “a snob” helps you sleep better at night - good for you. I am able to do things a lot of my friends can’t (to include helping others in real need) because I don’t have debt. I don’t have to budget around a car payment, credit card payments, in store charge card payments, etc, etc. my wife and I pay cash for EVERYTHING, or we don’t buy it. And yes, we have the money to enjoy life to the fullest and it’s not on someone else’s dime.
It's our responsibility to pay our debts, but it's also the government's responsibility to make sure that quality education is affordable. University costs are out of control. Students should not be graduating with six-figure college debt. That is a crime, and the burden is put on the working class. Medical care also should not put anyone into debt. Healthcare is a basic right and human need. Period.
Diana Hauser 👏👏👏 completely agree
well said
So corona is here. 😷 students have all that debt and no job in sight😱
Buying things we don’t need with money we don’t have to impress people we don’t really like
Such bs never fails to amaze me. People get into debt for the variety of reasons.
Someone has been listening to Dave Ramsey 😁😁
Dave Ramsey 🔥🔥
Beeing from Germany I'm always surprised how people living in North America have a totally different approach on debt then us.
For many of them it is just normal to constantly consume stuff they can't afford.
If you can't afford it then you don't deserve it (yet)!
Buying a house should really be the only time in your life when you buy something without having the money.
Maybe it's just a cultural thing.
This just reminded me to pay my capital One bill
LOL!
LOLOL. Please do. Then cut up the card and never use it again. I’ve don’t own a single cc and haven’t used one in almost 10 years. It’s a fallacy that you “need” a credit card. Don’t buy into this nonsense.
The most aggressive way I know to pay back debt is Dave Ramsey’s debt snowball.
Wholeheartedly agree! My wife and I paid off over $70K in debt in about 2 1/2 years using this method. The feeling you get when you write that last check is beyond description. I couldn’t fathom every having another car payment or credit card bill.
@@aeromedical6750 That is a great accomplishment.
Ramsey family represent
My parents got a loan of $200'000 in 1996 to build a restaurant and hotel on a land they had bought with their own money. It was the first Italian restaurant in the country (Southern Europe), but soon enough, Italians and foreigners started returning to their countries and the restaurant was about to fail. We rented it to multiple entities during the years but they were never profitable. After 23 years, we just finished paying the interest, and we just started to pay the $200'000. At about $2000/month, we will be debt free in less than 10 years. Problem is, the actual tenant will leave in two weeks, and it will be very hard to find another entity willing to run their business there. Meanwhile, the hotel turned into a "residence" for students...we went from earning $50/night from tourists and businessmen, to earning $300/month from 2-3 students staying in each room.
sounds liek your family were debt slaves
No. Such. Thing. As. GOOD. DEBT!
there is, if you know how to avoid paying it back. credit isn't a loan, it's permission from a bank to create new money, it's a confidence trick to have to "pay it back", you gave money to the bank not the other way around, the way out of paying off credit card debt is to make the bank prove there is a debt, they can't, i've done this.
Oh but loan officers will tell you there is
@@HarryNicNicholas congratulations. You're an entitled thief.
@Harry Nicholas - so basically, you’re a thief. You sign a contract to borrow money and pay it back at agreed upon time frames, and then purposely default. Congrats - you’re quite the role model.
Rest In Peace Angie!
Money in any bank account is never yours. You are loaning to the bank in return for a small interest.
They take your money and loan it out a a greater interest.
also money in a bank account no longer belongs to you, if the bank refuses to pay out you haven't got a hope. also only 3% of money is cash, so if we all trot to the bank and withdraw notes they will run out in no time. 97% of money is electronic. also bills are not money, they are IOU's "i promise to pay the bearer on demand" ask the bank teller for "the sum of one pound" (or one dollar) and see what they do.
@@Jj-gi2uv too bad we don't really own the land either because of tax debt.
Thank you for these great videos
We need more of this message to get out there
Credit card companies are sharks wanting us to be indebted to them till we die
It is kind of sad that these basic tips from basic strategic analysis are now a TED talk. Institutions and governments surely love people living in automatic, never stopping and thinking the next step.
I'm a "millenial", I figured all this out on my own, just taking the time to analyze different scenarios and an optimal solution based on the trend of each solution proposal. I then advised and taught some of my findings to my dad and other adults I've discussed these matters with, surprised that my father was so lost, having a major in business management (way closer to money management than my major in engineering).
This isn't a matter of age group, professional training, or social level. I've received plenty of financial advise from relatives, that didn't hold one or two reality checks, but I appreciate them for the good intention. The best advise I've got from financial independence circles: "do your own research".
You are quite intelligent and obviously an exception to the rule.
I love TedX
I don’t get how people can run up massive amounts of debt as if that’s “The American Way!” We have too many people that want to live like they make $150K a year while working a $12/job. It’s the whole “You never know what tomorrow brings. Why should I deny myself the finer things in life”. If they have to rack it up on credit cards - so be it.
I cannot agree with him enough.. Solid advice. I live it!
so ironic that higher education (college and above) don't have a required course in money management!
Not only do they not teach money management in college, they promote debt. Walk on any college college campus in America, and you will find any number of cc companies giving out free T-shirts to get you to sign up for their wonderful 17.99% APR CARD. They issue out debit cards with the balance of your student loan after books and tuition and then charge obnoxious service fees to use it. Any wonder why these kids blow completely through their student loan balance? They young people start out their post college years strapped down in debt that can take 20 years to pay off. How is this good for our country?
@@aeromedical6750 The cigarette companies used to give free cigarettes out at college too. My mother died of lung cancer. That is how she got hooked.
@Second Act - I used to be on Active Duty in the Army. There was a time when Soldiers had a couple of cigarettes included in their field rations. Smoking was not only culturally accepted in the military, but pretty much encouraged. Thank goodness that has changed
I paid a credit card off recently, 3 days later a brand new card arrived.
Thank you
i opened my window the same time i played the video and the intro sound scared tf outta me i thought an airplane was about to crash into me
Bc its important for ppl to eat and gas to get to their jobs. If you send all your money to debt and have nothing left to survive. Then what.
Just don't create debt, and DO NOT waste your time and money on schools.
There are some exceptions to this as we need doctors and such.... but I see the general point you're making. And I agree with you completely
mahirap maging mahirap....
Better do not live with debts. Sell whatever you are having and settle the debts.
Talking about a LAWYER paying off debt fast is like talking about a guy who goes $1M in the hole and comes up with the cure for cancer. Basically the ONLY reason she did it is because of what job she got. If she had done half of the debt and ended up with just a B.A. she would still have tons of debt.
But the only reason she had $120k for university was because she was doing law. Cut that in half in Canada for another degree and cut your income in half. Same effect.
@12:41 “CHEQUING ACCOUNT” *winces*
The lady with cancer - should have asked for the red pill and passed her savings on to her children
look up "three letter process" if you want to get out of debt. do your research. banks, credit card companies and debt collectors are sloppy, the onus is on THEM to prove you have debt, and they don't usually have the relevant paperwork, you can, and i have done this, keep them tied up in red tape forever.
bro but for those who are making 18 an hour how can you afford those payments when you have rent and car payments
Strike debt.
I don’t understand creditcard debts. I understand student debt and mortgage. But the rest.... I was brought up with the idea that you had to safe before you buy. That way you have some time to contemplate your spending: do you really need that car or that dress or the new playstation? I come from a very poor background and learned the value of money growing up. But somehow a lot of parents don’t teach their children how to manage their finances anymore. This is NOT the governments responsibility. Please parents: teach your children. ❤️
What if the responsibility for the debt was pushed back onto those who loaned the debt as well?
Interest rates are a risk premium paid to a lender...they took a risk, the borrower took a risk. Who owns the risk in totality?
Debt jubilees might be the only way to solve this systemic issue we have arrived at...
I have no debt btw...
How is a debt jubilee fair for those of us who live within our means. Furniture twenty years old, vehicles 13 years old, no fancy vacations. Worked through school. It makes me mad when the overspenders whine to get their debt forgiven.
student loans are immoral, education is an investment, not a business, the ridiculousness of SL is that there are ways to avoid it, or make it easier, which just screams "we got this idea wrong" from the start. when i went to uni in the 80's i had my own money in the bank and i got a full grant, and went straight into a good job at the end of it, it's not like that these days. the other cause of debt is reagonomics, wages have not increased with the cost of living since the 80's, we should be earning ten times what we actually now are.
I have friends pay $50,000 and up for vehicles I spend $50,000 on a house rent it for a thousand a month they pay a thousand a month
May I ask what area or city you buy in? I'm looking to get into rentals but everything in my area is too expensive to cash flow with what I have to put down
House payments in California are obscene
My girlfriend and I are paying a total of 4400 dollars a month on our house
I told her I want to sell and move out of outrageously expensive California
She wants to stay here because her grown up kids live here
you have poor friends.. they are bringing you down
@@dondressel4802 dump her.. get hotter hookers in costa rica for a fraction
What’s in your wallet ?
Money
The time is now to pay off debt? Guess they didn't get the message.
Donald Trump entered the chat
Not good
☯️🌏👣
Everyone has a Ted Talk now that they are meaningless and pretty valueless. Good job watering down your brand to ANYONE.
Consolidate debt!!!...thats among the biggest financial sins one can perform...cannot beleive such shallow advice passoff as TED talk
He's saying pay off debts