1. (Failing to plan for) medium term expenses. -> what is coming up in my life, and am i prepared for these expenses? Ex: gifts, study books 2. Making big financial decision without a ‘what-if’ analysis. -> figure out what the financial consequence is of any major decision Ex: new car, different job 3. Not having an emergency fund. -> even when you have to pay debts, make sure you have an emergency fund. Goal 1. 500$ Goal 2. Figure out your minimum monthly expense, and use that. Goal 3. Add goal 1 and 2 together. 4. Carrying a credit card balance. -> don’t use your credit card for credit. Pay it off monthly. 5. Refusing to build credit. -> don’t fear debt so much that you refrain from building up credit. 6. Failing to invest. -> don’t get something with high fees. Do invest to get that compound interest. 6.1 choosing debt payment or investing Find out if debt is something you are emotionally averse to. If yes; pay it off as soon as you can. If not, find out what your debt payments vs interest rates on investments are. Pay off debt with >5% interest. Pay the minimum on don’t let money (or a lack of it) hold you back from personal growth.
I was just going through your older videos from when you started several years ago, and I was so inspired by the amount of improvement over the last few years. While your older videos are still high quality, the videos you produce now are entertaining, informative, your set is amazingly designed, the audio and video quality are top notch, and you exude a confidence and charisma that only comes from professionals. Keep doing what you're doing. You've made such a huge impact already on so many people's lives.
Shout-out to my new editor Tony! This was the first "full" video he worked on. Check out his channel: ua-cam.com/channels/uD_syXDs4tSKExuPjM9ZWQ.htmlfeatured
Drug myself through some really rough years, and finally came out the other side. Now, I'm above American median, investing, taking charge of my finances, becoming physically fit again, and recommitting to learning Korean. As I became more motivated I began to recall your videos that I had seen when I was in the middle of my slump, and had to come back to kickstart some of my own more labored efforts. I know you're busy, and probably won't see this, but thanks dude.
Our education system has failed to to provide us any practical knowledge. Maybe a lesson on taxes or the importance of investing in retirement accounts.
1. Plan for medium term expenses e.g. gifts for the holidays 2. What If Analysis, take data from current finances and ask what if e.g what if I went from full to part time 3. Have an emergency fund, to start target $500, then minimum monthly expenses
I just decided to make a budget and organize my financial life and here's my favorite UA-camr just uploaded a video that answered all my questions and added some extra helpful tips, GOD'S PLAN. TAHNK YOU TOMAS ❤️.
1. (Failing to plan for) medium term expenses. -> what is coming up in my life, and am i prepared for these expenses? Ex: gifts, study books 2. Making big financial decision without a ‘what-if’ analysis. -> figure out what the financial consequence is of any major decision Ex: new car, different job 3. Not having an emergency fund. -> even when you have to pay debts, make sure you have an emergency fund. Goal 1. 500$ Goal 2. Figure out your minimum monthly expense, and use that. Goal 3. Add goal 1 and 2 together. 4. Carrying a credit card balance. -> don’t use your credit card for credit. Pay it off monthly. 5. Refusing to build credit. -> don’t fear debt so much that you refrain from building up credit. 6. Failing to invest. -> don’t get something with high fees. Do invest to get that compound interest. 6.1 choosing debt payment or investing Find out if debt is something you are emotionally averse to. If yes; pay it off as soon as you can. If not, find out what your debt payments vs interest rates on investments are. Pay off debt with >5% interest. Pay the minimum on don’t let money (or a lack of it) hold you back from personal growth.
Hi. I really appreciate this video. I did finally finish paying my school loans. It has been 22 years. When there has been loan forgiveness etc. I chose to pay it myself. I am finished and feel good about it. I like your ideas on how to think ahead and good plans with expenses. All your videos are helpful. I am in my 50’s and enjoy your videos and share your videos with my sons in their late20’s. Thankyou so much
I don't know if they are popular in the States, or if they even exists, but debit cards are a good choice as an alternative to credit cards. They only allow you to use the money that you already have so they force you to plan your expenses ahead. There are excellent for people who often find themselves having trouble with credit cards debts.
Mi inglés es intermedio y eres la única persona que puedo escuchar y entender completamente. Además que me ayuda a mi pronunciación. Gracias!. My English is intermediate and you are the only person that I can fully listen and understand. Also, it helps me with my pronunciation. Thanks!.
this video helped me finally make a budget that looks like a budget and has the potential to operate as one and i feel less pathetic and more hopeful now so thanks you're really great at what you do
Great video. I think the last one is especially important to think about. I actually recently bought a pretty nice "gravel/adventure" bike (fuji jari 1.5 absolutely love it) but I wouldn't let myself buy it until I was consistently biking 100+ miles a week on my old one (commuting to summer class helped that number out a lot). The experience helped me solidify what equipment/parts I really wanted and made it a pretty safe bet that I'd use it a lot. I'm trying out a similar thing with a new guitar and as much as it hurts to not get the shiny new PRS I really want, it makes more sense to have it when my playing ability matches (or surpasses) the quality of the equipment
Time spent watching your videos is time spent doing something productive! Thank you so much for your valuable insights Thomas. You are a true gem for a generation filled with thorns! Absolutely love your work.
I found your video as part of an assignment for my college class which is basically an intro freshman class. im glad i discovered you tho! subscribing today
Thank you for sharing this crucial information. I've always had problems with managing my money and I've been living abroad for years now, always found myself borrowing from friends and family, and I hated it. Will try to watch this multiple times and follow it.
oh hey this was uploaded today, I'm a totally random guy clicked on your video because I was interested in the content, but then I also realized you're the dude who did that crash course thing on how to study. I'mma check this stuff out. Edit: solid advice, thanks Thomas. I think I'm gonna sit down and ask my bank about credit cards and not do debit anymore.
As always, very useful and very informative video. I live in France and some of the things you described here are different (the use of credit cards) but I found your budgeting/what-if spreadsheet very useful and you gave me motivation to make my own (it was done in a few minutes!). Thanks for the tips and keep on making great videos!
I was about to go to sleep (it's 2am here) and I see this. Obviously, I immediately started watching it and at the mention of the Excel sheet I remembered I did not put my transactions on YNAB today. This video helped me even before it began. :D
Hi Thomas, I'm a 2nd-year college student majoring in finance and management but I'm not completely confident in it. But if its anything like this video I'll be extremely happy. Thank you for this! And if I'm wrong, feel free to correct me (anyone)
Hi. I enjoy your videos. I finally finished paying off my school loans. I did not do loan forgiveness. It was important to me to just keep paying them eve
I find Thomas Frank genuine of helping people specially those who are in confusion, despair, in a rut, struggling in life, a lot are in the 3rd world, in short, those who need it the most, to ignite their dying fire once again... You are a treasure Sir Thomas 🌟
Hey Thomas! Long time fan of your podcast also. Please consider starting to make more videos on the topic of personal finance/money and investing. This was lit!😎🔥🚀
Literally Dave Ramsey's book is all you need. He gives you specifics that Thomas is talking about, especially about and Emergency Fund and how to have a budget. It's really cheap and is a very useful tool. Highly recommend
I live in Czech Republic and it was so surprising to hear Prague all of a sudden when making a comparison with Des Moines:) It's sweet. Also thanks for keeping up with such a great content! Your videos are truly helpful and inspiring:)
I'M one of those people who are very emotional about credit. I wouldn't sleep at night knowing I owe someone money. I'd rather be broke and sane than be debted and mad. At the moment, I can't wait to pay off the last fringes of my credits so i can finally breathe peacefully
Regarding the point on investing your money, yes I agree that you should factor in that the 7% return is long term - but you also need to keep in mind that the 7% is pre-tax. I'm not from the States, but where I'm from that 7% would turn into ~5% after tax. The income component taxed up front, the capital component taxed when the investment is sold. Something to keep in mind.
I always pay my bill of my credit card before of the end of the month, and i only use when I already have the money in my bank account. I buy and I pay instantly.
Agree on the debt topic, there are 2 kinds of debt - a good and bad. Good debt helped you manage your cash flow and increase your earning capacity like loans used for rental apartments or for replenishing inventory. Robert Kiyosaki see this as debt acquiring asset. Bad debt are spent usually on expenses like gadgets and splurging in unnecessary spending. Agree, credit card is the easiest way to build credit history.
Great video with some very solid tips! I use YNAB for my budget and love it, BTW. I wish one more thing was mentioned about debt vs. investing; there is an unspoken assumption that you’ll always have the funds to make debt payments. In reality, if something happens to your income (or expenses) you may not be able to pay and then late fees and possibly increased interest rates pile on, most likely eliminating that gap between debt and investing. On the other hand, not having the funds to invest for a time does no excess harm. Just something to keep in mind about debt in the real world 🙂. To be in debt to someone puts them in control, which typically isn’t a good place to be. Note that I have my fair share of debt and am working towards getting it all paid off (other than the mortgage).
Good point - this is something that I couldn't fit into my outline, but it probably merits a whole video. Ideally the emergency fund, spending cushion, and investment base (given an initial strategy of using fairly conservative investments) would allow someone to weather an income gap when they still have debt. But there can easily be a situation where those things aren't enough. I need to do a video about debt/income ratios, types of debt, etc. Thanks!
This is a great video topic. i mismanaged a generous divorce support settlement into homelessness (ok, i traded cat shelter care taking for a place to live). it was humbling. i also had a bankruptcy as a result of debting. I was fortunate to receive government assistance and now receive a generous social security payment courtesy of my ex husband's earning power. He was an audit partner in a Big 8 firm. Recently his widow gave me a wallet of savings bonds purchased during the marriage, 25 years after the divorce. i have been fortunate to now own my own home and small property in a planned community. Your financial advice would have spared me much prosperity, and gratefully i was able to turn my life around. Oh, and i use Dashlane
Getting my first credit card at 21 was exciting, yet scary. Heard the horror stories of credit debt, low credit scores, etc. The greatest advice I ever took was “only spend 20% (or 10%) of your credit limit”. Only used my credit card on gas and whatever sudden bill that comes up. Thankfully, always paid in full with no interest.
Class video man! I know you said in person comments always mean more than online ones, but until I'm able to do that (who knows maybe if I follow these tips then I might), you sir are a baller
Kinda disagree with the 'debt isn't evil' part but then watching this, I realize money and finances are different in America. If you have enough cash, or can prove you have a consistent source of income, you can rent easily and credit rating isn't really a thing where I'm from. The American society is very weird in terms of money tbh, not only does it force everyone to live alone after a certain age and look down on anyone getting support from family but it also forces some lifestyle and expenditure conditions on you.
It's a long read, but I'd recommend the book "Debt: The First 5,000 Years" if you're interested about debt. That's the book that really changed my outlook on the concept of debt itself. I will 100% agree that some of the practices around debt - such as predatory lending, and the general system that allows and even encourages people to get into a LOT of debt - are at best greedy and at worst evil. But debt itself is a great thing. Debt enables resources that aren't currently being used to be moved into the hands of people who could do productive things with them. If everyone tried to avoid debt as much as possible, I think complex society would be impossible. Everyone would eventually find themselves in need of something, and wouldn't have something of equal value to trade. Even the concept of money itself requires debt in order to work. Currency is essentially just an IOU; a dollar bill is basically just a note that says "I've done $1 worth of work; I'm now entitled to $1 worth of goods or services from someone else."
You are awesome and very hard working. I love all your videos and each of the video reflects your passion for continuous improvement and investment in yourself. Pls keep posting
Hi Thomas! I was wondering if you have any advice about studying in a different country. Because i've been wanting to do this for a long time, and your videos have been super helpful for me. So i like to hear what your advice about this. If not, i still want to thank you so much for your videos, your channel is exactly what i needed in life!
Book recommendation: “The Simple Path to Wealth” by JL Collins Most of the information is free on his blog but the book makes it easier to understand. The book makes a few lists of mine: books I’ve read in a day, books I’ve read more than once, books I own multiple copies of across different formats, and books I recommend to everyone not just economics and finance geeks like myself. It seems too simple to work but I started following his methods a few months ago and my Vanguard brokerage is set to overtake my old brokerage, individual contributions and dividends held constant, in the next two years. Hopefully you’ve already recommended this book if not there ya go.
Okay, so basically, the banks in denmark are connected with the government as well as shops and other facilities. So every time i shop for something it registers as a kind of expense in the bank registry. For example rent is for housing, food is for food :D and clothing is wearables, electronics are different etc. And then i can go in the website of my bank, and they have a sheet with cool CSS coding to show me what went where and am i spending more than i earn or less. Also texes here are done before you get any sort of money here, since everything goes through the government facilities first. Good vid tho, thumbs up :)
Some points are quite specific to the situation in the USA, which is fine, but I'm not sure if you're aware. Like in Switzerland you don't have to worry about a "credit history" when using a credit card, but you still need to make sure you pay your bills otherwise you might get a debt enforcement proceeding, which will cause issues in certain areas, such as renting an apartment or working certain jobs. Additionally, falling hugely into debt isn't really a thing here in Switzerland or even Europe. School and universities cost next to nothing due to being heavily subsidized and thus the whole point of holding debt vs investing, doesn't really make sense.
Another Job Club issue for us - "You better think about your living expenses while you still have gas to drive to an interview." Unemployment isn't vacation money - it's job search money. Anyway - Thanks Thomas.
Hi I would like to ask for tip on any good app where I can handle (I mean write down, plan and track) medium term expenses. Exactly as Thomas mention in video I have o lot of expenses which occur once a year or half-year etc. I am looking for application where I can input this expenses with information till which date, how much $, if it is reccuring and it will show me that every month I have to put aside this amount of $. Right now I have my own excel spreadsheet but it is not as comfortable and automated as it could be in some app. Thaks in advance for any tips.
Hello +Thomas Frank! I can't recommend highly enough the slim little book _The Richest Man in Babylon._ Very timeless, in the guise of ancient parables from Babylon. :-)
+Anthony Ikani, agreed. The lessons are so relevant for today, even though they never use the terms "mortgage," "compound interest," or "mutual funds" they talk about them just the same. My favorite Amazon review of this book was from a guy who was selling radio advertising in his town, and as he made his rounds, he'd call upon a certain business owner every year. The guy had a car dealership, owned 3 of the nicest restaurants in town, and drove an expensive car. Yet he was about the same age as our radio salesman, so one day he asked him how he made his money. He expected to hear something like "inheritance" or "stock market" but instead he said "Once a year I re-read _The Richest Man in Babylon_ and the rest of the year I put into practice all the lessons it contains." Boom! :-)
A basic safety rules is to get minimum 3 months of your wages or of your expenses cash ahead, as cash flow or as an invest you could get back in a second without any cost or fees. The deal is, with 3 months ahead it let you a bit of a time to fix the bad situation you are. Well, obviously it seems that most of people don't get it...
I have been told by many people who have US Student Debt Loans that paying it off all quickly or right away is actually really bad. By doing that the bank loses money and for some reason that means you credit score goes down! Its unreal and seems rigged and illogical. but if you can, TRY to pay off student loans over the course of your loan agreement. It might cost a bit more money with interest rates, but itll help your credit score and youll have some money to invest. Long run it is better!
I suppose taking the whole time to pay off the loan would result in more on-time payments. But AFAIK it's not about the bank losing money. I'd love to see a source for that claim if you have one. For people with loans above 5% - or for those who hate being in debt - the on-time payments issue isn't a good enough reason to take the hit on paying extra interest. For what it's worth, I paid off my student loans extremely early (before graduating).
Honestly, its all logical fallacy of argument from experience. For all I know it could be bs, but I know 4 people who paid of their debts really really quickly and all 4 of them ended up taking massive credit score hits. I went to Uni outside of the states so I personally avoided student debt so I don't know exactly how it works. Maybe all 4 of them just signed really bad contracts that they didnt read well! If it was me I would try and pay it off as quickly as I could
If you live away from family I would suggest making your emergency fund be able to cover the cost of a plane ticket there and back. In Canada that is more than five hundred dollars depending on where you live and what time of year tragedy strikes.
Instead of thinking about emergency fund in terms of value, we should think it in terms of duration. Something like emergency fund equals 3 or 6 month expenses. And this should be spiked by a little percentage around 5 every year to take care of inflation.
CUE THE LLAMAS
Literaly heard it and went straight to the comments to see if someone mention it and guess which is the first commemt that i see😂
@@luzareizaga2141 yall is readin my mind
your remind me of murdoc from murdoc mysteries
1. (Failing to plan for) medium term expenses.
-> what is coming up in my life, and am i prepared for these expenses?
Ex: gifts, study books
2. Making big financial decision without a ‘what-if’ analysis.
-> figure out what the financial consequence is of any major decision
Ex: new car, different job
3. Not having an emergency fund.
-> even when you have to pay debts, make sure you have an emergency fund.
Goal 1. 500$
Goal 2. Figure out your minimum monthly expense, and use that.
Goal 3. Add goal 1 and 2 together.
4. Carrying a credit card balance.
-> don’t use your credit card for credit. Pay it off monthly.
5. Refusing to build credit.
-> don’t fear debt so much that you refrain from building up credit.
6. Failing to invest.
-> don’t get something with high fees. Do invest to get that compound interest.
6.1 choosing debt payment or investing
Find out if debt is something you are emotionally averse to. If yes; pay it off as soon as you can. If not, find out what your debt payments vs interest rates on investments are.
Pay off debt with >5% interest. Pay the minimum on don’t let money (or a lack of it) hold you back from personal growth.
I really like Thomas. He seems like just a really nice guy.
I agree. Seems like someone I could be friends with.
I was just going through your older videos from when you started several years ago, and I was so inspired by the amount of improvement over the last few years. While your older videos are still high quality, the videos you produce now are entertaining, informative, your set is amazingly designed, the audio and video quality are top notch, and you exude a confidence and charisma that only comes from professionals. Keep doing what you're doing. You've made such a huge impact already on so many people's lives.
++++++
Shout-out to my new editor Tony! This was the first "full" video he worked on. Check out his channel: ua-cam.com/channels/uD_syXDs4tSKExuPjM9ZWQ.htmlfeatured
Drug myself through some really rough years, and finally came out the other side. Now, I'm above American median, investing, taking charge of my finances, becoming physically fit again, and recommitting to learning Korean.
As I became more motivated I began to recall your videos that I had seen when I was in the middle of my slump, and had to come back to kickstart some of my own more labored efforts. I know you're busy, and probably won't see this, but thanks dude.
Awesome tips! Glad to see more people talking about money. We can’t rely on school or our parents to teach us this stuff anymore 🙌
Our education system has failed to to provide us any practical knowledge. Maybe a lesson on taxes or the importance of investing in retirement accounts.
That is true.
Azaria Bell so true gotta take Personal Finance into our own hands too much noise out there in the world
1. Plan for medium term expenses e.g. gifts for the holidays
2. What If Analysis, take data from current finances and ask what if e.g what if I went from full to part time
3. Have an emergency fund, to start target $500, then minimum monthly expenses
#1 is super important.
so is #2.
EDIT: & #3,4 & 5.
RE-EDIT: ALSO 6 & 7.
i hope my comment helped.
John Andrew sherlock!
Make it rain Thomas, Make it rain with knowledge.
I just decided to make a budget and organize my financial life and here's my favorite UA-camr just uploaded a video that answered all my questions and added some extra helpful tips, GOD'S PLAN.
TAHNK YOU TOMAS ❤️.
I agree with you Frank, awareness of our cash-flow (especially expenses) using data is a great way to start understanding one's financial health.
Great video!
But a summary at the end of it would have been perfect. I can't remember all the points laid out in a 15 minute video.
1. (Failing to plan for) medium term expenses.
-> what is coming up in my life, and am i prepared for these expenses?
Ex: gifts, study books
2. Making big financial decision without a ‘what-if’ analysis.
-> figure out what the financial consequence is of any major decision
Ex: new car, different job
3. Not having an emergency fund.
-> even when you have to pay debts, make sure you have an emergency fund.
Goal 1. 500$
Goal 2. Figure out your minimum monthly expense, and use that.
Goal 3. Add goal 1 and 2 together.
4. Carrying a credit card balance.
-> don’t use your credit card for credit. Pay it off monthly.
5. Refusing to build credit.
-> don’t fear debt so much that you refrain from building up credit.
6. Failing to invest.
-> don’t get something with high fees. Do invest to get that compound interest.
6.1 choosing debt payment or investing
Find out if debt is something you are emotionally averse to. If yes; pay it off as soon as you can. If not, find out what your debt payments vs interest rates on investments are.
Pay off debt with >5% interest. Pay the minimum on don’t let money (or a lack of it) hold you back from personal growth.
wupsje1 Thank you!
It would be nice of you to also post this in a separate comment, where more people will be able to see this.
Check Frank's blog post related to this topic collegeinfogeek.com/budgeting-for-college-students/
You can also take notes while listening and then reflect afterwards, so it's active and not passive learning
Take Notes. It helps
This is easily one of the most concise yet pragmatic videos I've seen on managing personal finances. Very well done, and no fluff. Thanks.
Hi. I really appreciate this video. I did finally finish paying my school loans. It has been 22 years. When there has been loan forgiveness etc. I chose to pay it myself. I am finished and feel good about it. I like your ideas on how to think ahead and good plans with expenses. All your videos are helpful. I am in my 50’s and enjoy your videos and share your videos with my sons in their late20’s. Thankyou so much
Great video. 100% on the credit cards, that can ruin your credit fast if you are not smart.
I don't know if they are popular in the States, or if they even exists, but debit cards are a good choice as an alternative to credit cards. They only allow you to use the money that you already have so they force you to plan your expenses ahead. There are excellent for people who often find themselves having trouble with credit cards debts.
100% True story :)
Mi inglés es intermedio y eres la única persona que puedo escuchar y entender completamente. Además que me ayuda a mi pronunciación. Gracias!.
My English is intermediate and you are the only person that I can fully listen and understand. Also, it helps me with my pronunciation. Thanks!.
Yepp, agree to everything.
I really appreciate that you are showing awareness of your audience not only being from the US, but other parts of the world 💛
Only around 30% of my views come from the US! 😁
Oh, wow! I wouldn't have expected that 😮 I often feel like I'm the only "foreigner" watching, but I suppose I'm not 😂
"analysis paralysis" is so true, Tom!
this video helped me finally make a budget that looks like a budget and has the potential to operate as one and i feel less pathetic and more hopeful now so thanks you're really great at what you do
Great video. I think the last one is especially important to think about. I actually recently bought a pretty nice "gravel/adventure" bike (fuji jari 1.5 absolutely love it) but I wouldn't let myself buy it until I was consistently biking 100+ miles a week on my old one (commuting to summer class helped that number out a lot). The experience helped me solidify what equipment/parts I really wanted and made it a pretty safe bet that I'd use it a lot. I'm trying out a similar thing with a new guitar and as much as it hurts to not get the shiny new PRS I really want, it makes more sense to have it when my playing ability matches (or surpasses) the quality of the equipment
Spencer Lemon wow, what a great way to plan your money. I like this a lot
Still have the best timing. Literally just looked at finances and... thanks :)
Time spent watching your videos is time spent doing something productive!
Thank you so much for your valuable insights Thomas. You are a true gem for a generation filled with thorns! Absolutely love your work.
Money management is the art of predicting the future e.g. planning for irregular expenses
I found your video as part of an assignment for my college class which is basically an intro freshman class. im glad i discovered you tho! subscribing today
That Parks and Rec reference was pure perfection. Genius Thomas.
Probably my favourite video on your channel! And I've been following the channel for a few years now! Congrats!
Thank you for sharing this crucial information. I've always had problems with managing my money and I've been living abroad for years now, always found myself borrowing from friends and family, and I hated it. Will try to watch this multiple times and follow it.
dude I "what if" wayyyy too much
My wife and I love you Tom! You’re an awesome dude. Thanks for sharing your knowledge.
I always pay off my balance but I have to work on medical debt sooo badly. Love your videos 🥰
LOVE this video. Not just your generic ‘save 10%, save for a down payment’ very helpful tips. Thanks!
oh hey this was uploaded today, I'm a totally random guy clicked on your video because I was interested in the content, but then I also realized you're the dude who did that crash course thing on how to study. I'mma check this stuff out.
Edit: solid advice, thanks Thomas. I think I'm gonna sit down and ask my bank about credit cards and not do debit anymore.
As always, very useful and very informative video. I live in France and some of the things you described here are different (the use of credit cards) but I found your budgeting/what-if spreadsheet very useful and you gave me motivation to make my own (it was done in a few minutes!). Thanks for the tips and keep on making great videos!
I was about to go to sleep (it's 2am here) and I see this. Obviously, I immediately started watching it and at the mention of the Excel sheet I remembered I did not put my transactions on YNAB today. This video helped me even before it began. :D
No money no mistakes
Necessities only
Thank you for sharing you are very intelligent
It is cute that you mentioned Prague, the capital of the country I am living in. :)
He really do seem like a nice guy. He sounds like an honest guy.
Hi Thomas, I'm a 2nd-year college student majoring in finance and management but I'm not completely confident in it. But if its anything like this video I'll be extremely happy. Thank you for this! And if I'm wrong, feel free to correct me (anyone)
"...cutting out the chocolate you buy in the grocery store... Yes, this is a projection."
* i feel ya there *
Anyone else notice he buys $50 worth of alligator food every month at 2:50??
Gotta feed Reginald
In Des Moines, Iowa? LOL
Cool content, man! Fellow Des Moinesian here, keep up the good work!
Hi. I enjoy your videos. I finally finished paying off my school loans. I did not do loan forgiveness. It was important to me to just keep paying them eve
I find Thomas Frank genuine of helping people specially those who are in confusion, despair, in a rut, struggling in life, a lot are in the 3rd world, in short, those who need it the most, to ignite their dying fire once again... You are a treasure Sir Thomas 🌟
Hey Thomas! Long time fan of your podcast also. Please consider starting to make more videos on the topic of personal finance/money and investing. This was lit!😎🔥🚀
Literally Dave Ramsey's book is all you need. He gives you specifics that Thomas is talking about, especially about and Emergency Fund and how to have a budget. It's really cheap and is a very useful tool. Highly recommend
I live in Czech Republic and it was so surprising to hear Prague all of a sudden when making a comparison with Des Moines:) It's sweet.
Also thanks for keeping up with such a great content! Your videos are truly helpful and inspiring:)
Full of tourists but nice and beautiful as during any other season:)
I'M one of those people who are very emotional about credit. I wouldn't sleep at night knowing I owe someone money. I'd rather be broke and sane than be debted and mad. At the moment, I can't wait to pay off the last fringes of my credits so i can finally breathe peacefully
Do you mind if I borrow you some money? XDDD
@Tyler Durden lll
Read "Rich Dad Poor Dad" , there are good debt and bad Debt. All debts are not bad.
Always like to watch you! You are so smart and knowledgeble!!! Love your tips!
Regarding the point on investing your money, yes I agree that you should factor in that the 7% return is long term - but you also need to keep in mind that the 7% is pre-tax. I'm not from the States, but where I'm from that 7% would turn into ~5% after tax. The income component taxed up front, the capital component taxed when the investment is sold. Something to keep in mind.
Havnt meet u. But you have a Golden heart 🙏♥️ thank you for making videos. Learn alot from you.
I always pay my bill of my credit card before of the end of the month, and i only use when I already have the money in my bank account. I buy and I pay instantly.
I subscribed because of that fantastic spreadsheet thank you for sharing! Also, the sums exported to Excel perfectly nice one!
Thank you, great budget spreadsheet!! And the video of course as always)
Agree on the debt topic, there are 2 kinds of debt - a good and bad.
Good debt helped you manage your cash flow and increase your earning capacity like loans used for rental apartments or for replenishing inventory. Robert Kiyosaki see this as debt acquiring asset.
Bad debt are spent usually on expenses like gadgets and splurging in unnecessary spending.
Agree, credit card is the easiest way to build credit history.
That Jingle All the Way reference was top tier, man. I wouldn't trust your advice if you didn't know that piece of popular culture.
Your video quality is so satisfying.
Great video with some very solid tips! I use YNAB for my budget and love it, BTW.
I wish one more thing was mentioned about debt vs. investing; there is an unspoken assumption that you’ll always have the funds to make debt payments. In reality, if something happens to your income (or expenses) you may not be able to pay and then late fees and possibly increased interest rates pile on, most likely eliminating that gap between debt and investing. On the other hand, not having the funds to invest for a time does no excess harm.
Just something to keep in mind about debt in the real world 🙂. To be in debt to someone puts them in control, which typically isn’t a good place to be.
Note that I have my fair share of debt and am working towards getting it all paid off (other than the mortgage).
Good point - this is something that I couldn't fit into my outline, but it probably merits a whole video. Ideally the emergency fund, spending cushion, and investment base (given an initial strategy of using fairly conservative investments) would allow someone to weather an income gap when they still have debt. But there can easily be a situation where those things aren't enough. I need to do a video about debt/income ratios, types of debt, etc. Thanks!
Dude, you're so awesome!! Keep up the good work!!!! 😁🍀
I didn’t have savings problem, i had lack of income problem. My mistake was working for money. Now money works for me.
Thomas you were roaming about monthly rates or anual rates?
Greetings from Colombia
omg you mentioned Prague!! I'm from there, greetings and keep up the great work!
This is a great video topic. i mismanaged a generous divorce support settlement into homelessness (ok, i traded cat shelter care taking for a place to live). it was humbling. i also had a bankruptcy as a result of debting. I was fortunate to receive government assistance and now receive a generous social security payment courtesy of my ex husband's earning power. He was an audit partner in a Big 8 firm. Recently his widow gave me a wallet of savings bonds purchased during the marriage, 25 years after the divorce. i have been fortunate to now own my own home and small property in a planned community. Your financial advice would have spared me much prosperity, and gratefully i was able to turn my life around. Oh, and i use Dashlane
Thanks for keeping me accountable, Boo 😘💕
Thank God you are there
Getting my first credit card at 21 was exciting, yet scary. Heard the horror stories of credit debt, low credit scores, etc.
The greatest advice I ever took was “only spend 20% (or 10%) of your credit limit”. Only used my credit card on gas and whatever sudden bill that comes up. Thankfully, always paid in full with no interest.
Please make a video on learning to how to learn. You the best!
I think he has one explaining the Feynman technique.
Class video man! I know you said in person comments always mean more than online ones, but until I'm able to do that (who knows maybe if I follow these tips then I might), you sir are a baller
Money spent on an alpaca are money well invested. Thanks Thomas, I think I have understimate my credit card cost so far.
Kinda disagree with the 'debt isn't evil' part but then watching this, I realize money and finances are different in America. If you have enough cash, or can prove you have a consistent source of income, you can rent easily and credit rating isn't really a thing where I'm from. The American society is very weird in terms of money tbh, not only does it force everyone to live alone after a certain age and look down on anyone getting support from family but it also forces some lifestyle and expenditure conditions on you.
It's a long read, but I'd recommend the book "Debt: The First 5,000 Years" if you're interested about debt. That's the book that really changed my outlook on the concept of debt itself.
I will 100% agree that some of the practices around debt - such as predatory lending, and the general system that allows and even encourages people to get into a LOT of debt - are at best greedy and at worst evil. But debt itself is a great thing.
Debt enables resources that aren't currently being used to be moved into the hands of people who could do productive things with them. If everyone tried to avoid debt as much as possible, I think complex society would be impossible. Everyone would eventually find themselves in need of something, and wouldn't have something of equal value to trade.
Even the concept of money itself requires debt in order to work. Currency is essentially just an IOU; a dollar bill is basically just a note that says "I've done $1 worth of work; I'm now entitled to $1 worth of goods or services from someone else."
You are awesome and very hard working. I love all your videos and each of the video reflects your passion for continuous improvement and investment in yourself. Pls keep posting
I love ALL your videos! You're awesome!!!!
More personal finance videos Thomas! Awesome video as always!
Another Helpful Video!! Loved It!!!
Hi Thomas! I was wondering if you have any advice about studying in a different country. Because i've been wanting to do this for a long time, and your videos have been super helpful for me. So i like to hear what your advice about this. If not, i still want to thank you so much for your videos, your channel is exactly what i needed in life!
What expenses management apps do you recommend?
Book recommendation: “The Simple Path to Wealth” by JL Collins
Most of the information is free on his blog but the book makes it easier to understand. The book makes a few lists of mine: books I’ve read in a day, books I’ve read more than once, books I own multiple copies of across different formats, and books I recommend to everyone not just economics and finance geeks like myself. It seems too simple to work but I started following his methods a few months ago and my Vanguard brokerage is set to overtake my old brokerage, individual contributions and dividends held constant, in the next two years. Hopefully you’ve already recommended this book if not there ya go.
i was just thinking of this topic! thank you!
It's here!!!!!!
Your book is so good . I love it
Okay, so basically, the banks in denmark are connected with the government as well as shops and other facilities. So every time i shop for something it registers as a kind of expense in the bank registry. For example rent is for housing, food is for food :D and clothing is wearables, electronics are different etc. And then i can go in the website of my bank, and they have a sheet with cool CSS coding to show me what went where and am i spending more than i earn or less. Also texes here are done before you get any sort of money here, since everything goes through the government facilities first. Good vid tho, thumbs up :)
haha 2:51, Alligator food.
Some points are quite specific to the situation in the USA, which is fine, but I'm not sure if you're aware.
Like in Switzerland you don't have to worry about a "credit history" when using a credit card, but you still need to make sure you pay your bills otherwise you might get a debt enforcement proceeding, which will cause issues in certain areas, such as renting an apartment or working certain jobs.
Additionally, falling hugely into debt isn't really a thing here in Switzerland or even Europe. School and universities cost next to nothing due to being heavily subsidized and thus the whole point of holding debt vs investing, doesn't really make sense.
Another Job Club issue for us - "You better think about your living expenses while you still have gas to drive to an interview." Unemployment isn't vacation money - it's job search money. Anyway - Thanks Thomas.
Hi I would like to ask for tip on any good app where I can handle (I mean write down, plan and track) medium term expenses. Exactly as Thomas mention in video I have o lot of expenses which occur once a year or half-year etc. I am looking for application where I can input this expenses with information till which date, how much $, if it is reccuring and it will show me that every month I have to put aside this amount of $. Right now I have my own excel spreadsheet but it is not as comfortable and automated as it could be in some app. Thaks in advance for any tips.
I've never been this early but you always know what I need when I need it
Hello +Thomas Frank! I can't recommend highly enough the slim little book _The Richest Man in Babylon._ Very timeless, in the guise of ancient parables from Babylon. :-)
Flat Earth Math the best book of money management of alltime. Period!
+Anthony Ikani, agreed. The lessons are so relevant for today, even though they never use the terms "mortgage," "compound interest," or "mutual funds" they talk about them just the same.
My favorite Amazon review of this book was from a guy who was selling radio advertising in his town, and as he made his rounds, he'd call upon a certain business owner every year. The guy had a car dealership, owned 3 of the nicest restaurants in town, and drove an expensive car.
Yet he was about the same age as our radio salesman, so one day he asked him how he made his money. He expected to hear something like "inheritance" or "stock market" but instead he said "Once a year I re-read _The Richest Man in Babylon_ and the rest of the year I put into practice all the lessons it contains." Boom! :-)
I love guessing when the segue to the ad is about to happen
Great video! Greetings from Prague btw :D housing here isn't rly cheap, so don't expect some low-cost living...
A basic safety rules is to get minimum 3 months of your wages or of your expenses cash ahead, as cash flow or as an invest you could get back in a second without any cost or fees. The deal is, with 3 months ahead it let you a bit of a time to fix the bad situation you are. Well, obviously it seems that most of people don't get it...
I have been told by many people who have US Student Debt Loans that paying it off all quickly or right away is actually really bad. By doing that the bank loses money and for some reason that means you credit score goes down! Its unreal and seems rigged and illogical. but if you can, TRY to pay off student loans over the course of your loan agreement. It might cost a bit more money with interest rates, but itll help your credit score and youll have some money to invest. Long run it is better!
I suppose taking the whole time to pay off the loan would result in more on-time payments. But AFAIK it's not about the bank losing money. I'd love to see a source for that claim if you have one. For people with loans above 5% - or for those who hate being in debt - the on-time payments issue isn't a good enough reason to take the hit on paying extra interest.
For what it's worth, I paid off my student loans extremely early (before graduating).
Honestly, its all logical fallacy of argument from experience. For all I know it could be bs, but I know 4 people who paid of their debts really really quickly and all 4 of them ended up taking massive credit score hits.
I went to Uni outside of the states so I personally avoided student debt so I don't know exactly how it works. Maybe all 4 of them just signed really bad contracts that they didnt read well! If it was me I would try and pay it off as quickly as I could
Incredible financial tips!
If you live away from family I would suggest making your emergency fund be able to cover the cost of a plane ticket there and back. In Canada that is more than five hundred dollars depending on where you live and what time of year tragedy strikes.
I really like the humor in this video Thomas! Very informative and funny
Instead of thinking about emergency fund in terms of value, we should think it in terms of duration. Something like emergency fund equals 3 or 6 month expenses. And this should be spiked by a little percentage around 5 every year to take care of inflation.
Awesome video man. I needed this type of video. BTW, I am not getting notifications for your Channel even though I am in notification squad.
What card did you get at 18?
he's so nice he gave a good sum towards charity
Wonderful video. Could you make a video about how you make 6 sources of income? Thank you!