CPA Explains: Money Habits That Keep You Poor
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- Опубліковано 29 кві 2023
- This video discusses 10 bad money habits that are simple to correct, yet keep people poor if they go unnoticed.
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INSIPIRING!! Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $109k now to put in the market.
Given the prevailing market conditions and the potential risks associated with the current economy, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
@@MarkFreeman-xi3rk Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Cant reveal much info, Margaret Johnson Arndt is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing..
Food for thought: Place a sizable portion of your capital/savings in fixed-income securities like treasury bills, corporate bonds, government securities, debentures and let it grow. It will take you far I promise.
If you have a problem saving maybe because of a tight financial budget or something then there would be nothing to keep aside to invest in the first place.
@@francescadelight I understand the situation is not the same for every one but it's very important to cut your coat according to your size and find contingent ways to save, then you can find the best options to invest that money. It's possible for anyone.
@@kevincooper0 Well if you put it that way it makes a bit of sense. It's realistically achievable. If you find it hard to do this you can always get a planner, it will save you a lot. They can setup feasible plans for you to save up, plan well for retirement.
@@ramonfred That idea doesn't quite sit well with me, letting another person manage your money for you plus did I also add it costs money too!
@@francescadelight No, true planners are mainly just advice givers and schematic on paper planning, they don't collect any money from you, it remains with you. All you need to do is follow the strategies they give you. Anyone that asks you for money please avoid at all costs.
Maybe slightly outside the topic of money, but definitely bad habits that will keep you poor: smoking, drugs, gambling and heavy drinking.
how is gambling outside the topic of money
I had some seriously deadbeat renters once, people who seemingly should have no problem paying the rent, and the property manager said in his experience it always boiled down to drugs, gambling, or pornography.
@@Plutogalaxy Gambling with your Cash is one thing. Who can Afford Gambling with their Health. Drugs,Smoking ,Drinking. Lol.
@@Plutogalaxy seriously, it is. Smoking lead to medical bills and a coffin + cremate cost. Same with drinking, alcohol is very expensive and so the rehab. Think harder to stay away poverty. Duhhhhhhhhhh
@@stevelopez372 yep, the rehab, the coffin, the cremate are expensive and definitely needed
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio
infact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
Would you mind recommending a specialist with a variety of investment options? This is extremely rare, and I eagerly await your response.
google his name
search his full name;
you will find his webpage
Love this, as a fellow CPA. I so wish we’d focus more on personal financial education with children and young adults.
But that would take away all the ignorant people who are so profitable to exploit! Rent to own, payday loans, ridiculous vehicle loans, etc.
I wish people earned a living wage.
Most people are afraid to take risks. It hard to avoid losing money on scams too.
I used to know a financial advisor who would go to a local high school once a year to teach how money works basically. I helped her develop a board game for the kids to play that would enforce what she was teaching. Keep the kids engaged.
So you wanna ruin the world of finance??😮 And what's next? Pay employees more money?
1-The “spendies”: overspending as soon as you get paid
2-Credit card debt
3-No emergency fund
4-Not knowing where you spent your $
5-Not advancing in your career
6-Not knowing how to minimize your taxes legally
7-Being afraid to take calculated risks with $/investing
8-Waiting too long to invest
9-Belief that $ is bad
10-“Lifestyle creep”: spending more because you make more
1) payday spending 2)credit card debt
3)no emergency fund
4)no expense tracking
5) lack of career growth
6)not minimizing taxes
7)Fearing normal money risks
8) waiting too long to invest
9) belief that money is bad
10)not regularly paying into your own investment accounts
you left out not having a budget and increasing your spending as you pay increases, keeping up with the neighbors
Picking a lousy Major in College and stuck with a debt your hoping the Public will pay for. Lol.
#7: I lost a lot of money in my IRA in 2008 and withdrew my money from stocks. So of course I lost out when the market went up again. Lesson learned.
Adding a pet to your life especially when you don't own your own house and failing to practice birth control would be the biggest Financial blunders
@@20thcenturyrelic Lost (on paper) money during covid. When it recovered I expected another crash because of all of the spending so went into cash. I was right, just a couple of years off.
I got back in at pretty much the top and retired just before it fell off the cliff so I've been living off cash. I had three years worth and a backstop anyway.
To achieve greatness, you need to start working towards it. Investing remains the smartest way to prepare for the future. Been into this for 8years and I'm extremely pleased with the good returns.The good news is, it's never too late to start investing.
The first step to success is figuring out your goals and risk tolerance - either on your own or with the help of a financial advisor. If you can get the facts about savings and investing with a well detailed plan, you should be able to gain financial security over the years and enjoy the benefits of managing your income.
Personally i ventured into the stock market so i won't be stranded with the help of an Investment advisor. A colleague of mine introduced me to "Courtney Heath Williams", who drew out investments plans and they all aligned with what i wanted and had to pick one plan and with his exit and entry strategies on commodities, securities and digital assets, my portfolio has really been diversified with good ROI. Im really impressed by how much i have achieved so far with my investment...
@@williamsdavis.that's great, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financially stable. Do you mind sharing more info on how to reach your advisor?
His available on telegam with the username below.
@@GeorgiaMoore.WHCOURTNEY.
My friends dad told me to always pay yourself on payday before you pay anyone else, even if it's only $5. After about 10 years I finally listened to him and now I'm comfortably retired.
My dad told me the same thing. So for forty years I spent 10% of my paycheck on clothes and shoes. Nobody ever told me it was supposed to go into savings.
@@vegansinthewildover5023 hilarious
Lol. No the key is thlo minimize the amount of people you're paying to. I.e. debt
@@vegansinthewildover5023 😅
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@lipglosskitten2610 Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
@@kenanporubsky2122 My advisor is Catherine Morrison Evansshe’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
@@lipglosskitten2610 I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0 , so my question is do I still save in the United States dollar or is this a good time to buy gold?
It’s always a good option to keep some gold. Well with the current market situation and everything at stake with the present economy, I’d say you’re better off staying away from stocks fr awhile or better still reach out to an adviser for guidance.
@@richardhudson1243 true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far
@@darnellcapriccioso I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
@@tatianastarcic It's best you do your due diligence, I have my portfolio overseen by Laurel Dell Sroufe, and her qualifications speak for itself. Most likely, the internet is where to find basic info, she has a noticeable page for consulting.
@@darnellcapriccioso just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!
I use my CC as as a tool. Any of my monthly bills that accept CC I use them. I pay the full balance every month out of my checking account and never carry CC debt. CC are not a problem its the people and how they use them that is.
So true. I have certain amounts in categories in my budget. I don't overspend. But I use CC and payoff before due. CC aren't the problem but over spending and not tracking spending and paying off at due date.
As long as one can distinguish needs from wants.
Among my friends / coworkers - Cars are the big money pit. I'm 57 and have owned two cars, bought both new and took care of them - an 87 Pontiac and a 02Ford, both ran over 250k miles getting me back and forth to work. All my friends buy a new car every few years just because they are bored of the old car and they always have a big car payment. What a waste of money.
I always bought used cars and learned how to fix them myself. I have never had a car payment, which has been a huge financial blessing.
One day, a neighbor came by while I was doing an oil change. He said, "You sure like working on cars. I see you working on them all the time."
I told him I did not like working on cars. He seemed puzzled. I clarified my statement by telling him I liked saving money, so I learned how to fix cars in order to not pay mechanic fees.
Scotty Kilmer bought a 94 Celica for $500
I am also a CPA as well as a Certified Financial Planner. My honest advice to all my clients is to listen to your own basic instinct, but only spend accordingly. People who become rich are usually by chances and not by planning. Stock markets are being manipulated all the time by those who already are rich.
Thanks you.
You don't sound like a CPA.
Some people need guidance though. Instincts is what get a lot of people in financial trouble.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
'Sharon Madorsky Davison' is great. I invested my life savings with her. She stole all my money, I lost my home and am now living under a bridge. Highly recommended!
Inflation and Recession are dilapidating. Quite sad what's happening in the market. Although, even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. The market circumstances are driving me insane, my portfolio has lost almost $13K this month alone, my earnings are tanking. I'd appreciate some financial advice from anyone who knows more going forward.
The same high-yield potential exists in both bullish and bearish situations; what matters is how information and technique are used. Not neglecting professional advice.
@@trazzpalmer3199 People do downplay the importance of expert counselors up until they experience the consequences of their errors. I wanted to stay afloat between the COVID outbreak and my early 2020 layoff, so I started looking for license advisors. My previously stagnant $325K reserve has so far created significant returns from subsequent investments owing to expert leadership by my FA, who can be found online. I was fortunate to come across someone with her level of practical knowledge and years of experience, and she helped me.
@@graceocean8323 We’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?
My Financial Advisor is JEANNE LYNN WOLF. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.
Right now, I'm literally hanging on by a straw, so your advice couldn't have come at a better time! I'll look her up on the internet and then give her a call.
When I get the Spendees, I buy Certificates of Deposit. 😊
try buying a gold coin
I would buy US saving bonds at the bank when I cash my weekly paycheck. Now I buy silver bars at the local coin shop.
I have been retired for a long time, but I share with my kids and grandkids. We should be talking about this in schools so that it is ingrained into our brains.
Agree, but schools are more focused on teaching gender related material instead of life skills that they can actually use....
@@paulg6309 Particularly self-control and anything resembling capitalism. Instant gratification and government is the rule.
I've often wondered if basic financial knowledge 'isn't' taught in school to create consumers who can be easily exploited.
What about parents talking about it (and many other life lessons) and rely on schools just to give kids a basic education?
@@mikemccormick8115 It's a major problem. For the public in general, support education portability and/or magnet schools.
If I had school-aged kids now, I'd either home school or find an affordable private school. There would be no way I'd let a kid go to public school.
Request: can you create content on how to talk to young-adult children about the many benefits of benevolent giving? From the soft, warm & fuzzy feeling to the financial advantages of sharing one’s wealth with others? Love your channel! ❤
Grew up poor. Got a full time job. Paid every 2 weeks. Developed a bad case of the "Spendees" for decades. Regret that I didn't know then what I know now. Oh well, when you know better you can do better. Even though my employer offered a 401k, I honestly did not fully understand about 401k. Therefore, I missed out until someone prodded me to join the program. Even after signing up, I still did quite understand. Take away message: We need to make sure our young people fully understand about these opportunities. I was raised by an loving but uneducated single mother.
The one thing about my credit cards is that I have no idea what the APR is and I don't care as I pay the cards off every single month via auto pay. I check the account frequently looking for incorrect charges and I know what the balance due is. Credit cards are very useful, if managed carefully.
Thanks Geoff for another great video. CC debt builds up fast and before you know it’s like quick sand. In February 2021 I cut up all of my credit cards except one. by January 2023 paid off all my CC debt. Never again carrying a CC balance. Too many years of that and lost a lot of potential savings. SPENDEES is a behavioral problem and I had it for many years. Thank god my TSP (401k) is north of 400k and climbing. About 5 1/2 years away from retirement ; along with my pension and SS I should have about 85-90% of my pre-retirement income. Plan is to be debt free except for my mortgage when I retire.
I’m confident the current market has an equal possibility of making high-value gains or losses, so I'm cautious with my selections; I recently read an article about someone that accrued over $750k in this current market crash, and I could really need ideas on how to achieve similar profits.
True, My wife and I are retiring this year with over $6,000,000 in tax deferred investments. up until 3 years ago we were 100% in the S&P. During bear markets we had a perfect plan. We got an investment manager in our corner and didn’t look at our portfolio for nearly a year. Just kept buying at low prices.
@@kaylawood9053 that's impressive!, I could really use the expertise of this advisors , I'm a single mom and need such luck this red season....who’s the person guiding you.
@@adenmall7596 My advisor is “ELEANOR ANNETTE ECKHAUS” You can easily look her up, she has years of financial market experience…
Thank you for this amazing tip. I verified her and booked a call session with her. She seems Proficient.
Your videos are so informative, thank you!
The way he describes how "most people" handle their money is terrifying. I've always thought of money as something to preserve so I've always tracked everything.
Great video! Credit card debt will kill you financially along with too much "good debt". We may have a mortgage and a car payment with both of them at low APRs but if the total per month is too much it's just as bad as credit card debt. Leasing a high end car for $600 a month vs buying a less expensive car for $300 month makes for harder financial times; same thing with big mortgages ... living within our means helps a lot. There were jokes years ago with the small mansions going up that people were buying them and couldn't afford to furnish them; we always felt being house poor is no way to live.
I agree with you 💯 Mortgage, bills on house 🏠 car payments , insurances, groceries to pay, and many more ....There is no more money to invest ....
Car note is not good debt. It's as bad as credit card debt. Think about it. It's a depreciating asset. The only thing worse than a car loan is a car lease, unless it's a business lease/tax write-off.
@Chiara C car debt is not good debt, you are correct but most people don't have $30,000 - $40,000 to just buy a car so to me it's acceptable debt. If you can get low percentage financing then use their money vs your own. If you're paying 4% or more pay it off as soon as possible. But with many retired people struggling they may not be able to pay an additional $200 or more a month to pay the car down faster. Also, not everyone wants a $6000 car.
I have in my retirement budget $300 a month for a car payment. It doesn't mean I will have one but it's a placeholder for if/when we need a new car. My brother in law will not be able to afford car payments in retirement so he is saving up to buy a car outright for when he does retire. Personally I think anyone who plans on driving should assume they will have a car payment at one time unless they are good with car mechanicals and can keep a car for a long time doing the work themselves or had a friend that can do the work.
I believe in living as debt free as possible but houses and cars tend to be things that debt is required.
This video applies to citizens of America and a handful of other countries. Don’t take this place for granted.
My folks solved that problem. Never got the spendys because to get the dollars I had to do the workies. Figured out pretty quick that the junk was OK once in a while, but the savies allowed me to get nicer stuff.
Thank you for your info, Mr. Schmidt 👍
I really like your meaningful videos. Everything you say JUST MAKE SENSE. Thank you.
Another great video-Thank you!!
"I don't want a nation of thinkers, I want a nation of workers." John D Rockefeller
This video is top of my list to show & discuss with every child, youth, and young adult in my extended family.
My dad told me to invest enough to get the 401k match. We stayed diligent, and my husband was able to retire early to help me with my disabled son.
Jeff, always love your videos... Watched for years and never commented. Thanks for common sense!
I’m retired since over 2 years, it came suddenly, because of covid, the company wanted us out, but they offered a good package. Thanks goodness I never had debt, that helped me to retire, I’m not rich, but I live comfortably for now!
but what are the habits that keep you poor which you are avoiding to be comfortable? i gots to know.
@@DrSchor “I gots to know”? What kind of English is this? Writing like this could be one way to keep you poor!
@@beautyRest1 That was extremely hilarious. Proper grammar as we know it, has been extinct for a while, and that is apparent at all socioeconomic levels.
@@beautyRest1 right on
Thanks Mr Schmidt! Great video again
#1 bad habit is getting financial advice from anybody on UA-cam
Geoff another great video. Thank you.
I live in the UK and learned these mistakes the hard way. I'm 50 now and we still don't teach these basic essentials in school. I may have not listened, back at school, but at least I will have known something about how debt can ruin your life. I didn't know what interest rates were until I was 20.
I have saved into my 403b the minute I was eligible to, invested that money, diversified. 30 years later, 🎉🎉🎉. I made my BF (now husband) did the same, 🎉🎉🎉.
Bought my apartment ‼️in cash.
We are comfortable, can pay medical insurance, food, and a small vacation without worry.
that is what you did.
what are the habits you did not do?
I can relate to the “spendy”, and the lifestyle creep. Thank goodness I always paid myself first all those years while working.
We keep a running spreadsheet sheet that contains a formula to calculate every single spend during our fortnightly pay cycle. We are absolutely diligent about entering every single spend, no matter how small. We round up each spend to the next dollar and cross check it with the actual bank balance, and what is still to go out (power/water/other regular payments). It takes a little bit of time and discipline but we know exactly where every cent goes. We have all of our regular payments set up on auto pay systems and if there are any unexpected bills we always pay them immediately. All of our food is prepared from scratch and we bulk shop once a month using a list. We collect shower water in a bucket and this is used to flush the toilet, we don't use a clothes dryer but instead hang laundry outside or on a rack in a sunny room. It sounds very laborious but it's not. We both still work and we contribute to our retirement scheme from each paycheck. Because of these small habits, we are able to slowly but steadily grow an emergency fund, and a treat fund.
Sounds good except for the hanging laundry part. Our natural gas bill is $130 a month for heating, hot water, cooking and for the gas clothes dryer. Natural gas is still pretty cheap in America. They want us to electrify everything eventually though. The prices went up a bit when the war in Ukraine started but are still fairly low.
If you’re in the UK or the EU your natural gas bill is probably higher than what it is in the U.S.
Being obsessed with money is NOT a good thing.
there is therapy for obsessive compulsive disorder, get some.
My Dad used to say "that money is burning a hole in your Pocket" LOL
Thank you Sir for your advice.
THANKS for your youtube videos !
"Watch your pennies & the dollars will take care of themselves" or "Do without now, so you can have much more later."
Yes I have the Spendies I'm trying to change that so Thanks for the video 😊
Keeping people poor is the need to feel like what we have is part of a competition… reminding us what and who is important is winning in life.
Excellent advice and explanations. Now I'm secure enough in my career that I can invest a decent amount each year. Most years I am able to max out my 401K contribution. My biggest mistake besides doing everything on your list in my youth was failing to roll over a 401K about 20 years ago and instead cashing out with the age penalty.
Thanks for your insights.
Thank you, Jeff.
Hey Geoff Kyosaki is right about good debt ( house ) & bad debt ( credit cards ). Paying off my BAD debts 1st was like a lead weight being lifted off my chest. Once that happened the good debts got paid off too. Living debt free now in retirement feels so good. Only regret was not saving earlier in my life. Some chances I took in Real Estate did not work out but I learned. Today's S&P 500 companies have a P/E over 22/ 23. Not a good time to invest if you look at a chart over the past 50 years comparing the P/Es of the companies in the S&P 500 ! Too many bubbles exist & I'll invest in short term T Bills / CDs & some low P/E companies that pay a good dividend until this market comes back to REALITY !
Thanks. I just closed my Roth IRA and plan on buying gold and silver. Then I'll get real estate after the market crashes. I hear it will crash 💥
@@gypsyluv1118 Housing prices are already down 20 to 30 % in certain areas.
My biggest money issue, Payday loans the interest rates on $300 is 400% I was paying triple just borrow few hundred dollars. Eating out and even buying Coffee wasted $13-$25 per month. Why spend $1.50 to $2.25 per cup when make it home for .15 cents cup.
Great and insightful video as usual Geoff. You really hit the nail on the head with how you "feel" about money. I have always seen money as freedom and a friend. Treat money with respect and it will do the same for you. 55 and financially retired...just run my company for fun.
Thanks!
Nice work Shamile!
As a person who worked for many years for modest salaries, I found the best way to minimize my taxes was to put as much as I could feasibly afford into my company's 401K. I tried to at least contribute enough to trigger the company's contribution.
Also, I took advantage of health care flexible spending accounts to the extent I thought would cover out of pocket health care expenses. And I bought a small house when the standard deduction was lower, and I could itemize deductions. That turned out to be one of my best decisions!
Stupid games!
I had to do chores like cleaning for my allowance. I've raised my daughters to do the same thing and I expect that they are doing the same with their kids, at least the older one whose kids are old enough to do so. I would take my allowance and save for books (fiction) of little things I wanted while putting some in the bank account that my father helped me open. By grade school I would walk about 1 mile to a small store to guy candy or gum. When I would bring the 12" Big Buddies to school, other kids would offer me more for them than I paid! So I started buying as many as I had money for to buy them at 5 cents then sell them for 10! Or 3 for a quarter.I even bought a tote bag big enough to carry a large amount! The kids would swarm me in the morning until I was sold out! Then I got called to the office because one of the winy little customers told his mother he couldn't have lunch because he spent his lunch money all on gum! So his lack of control put me out or business! ☹
you think that was bad? i grew up without remote control. I had to walk all the way across the room to change channels, sometimes in my bare feet.
@@DrSchor No I think it's a good life long lesson! And my sister and I didn't even have TV's in our rooms until one Christmas morning at ages 8-10. They were black and white with no remote controls either. But I remember those as the best gifts we ever received! And we did get a lot of things, probably more than most kids our age. 😊
Haha. I did this too. I used to buy candies in bulk and sold in retail at school
Winnny is still around, it's not my fault I'm a victim 🤣🤣🤣
@@ricgunn1439 Whiney, are you still destroying businesses? 🤔
There are hundreds if not thousands of these types of shows on UA-cam. I like him best. Simple, does not expect for you to be rich to start with and something I share with friends and FAMILY!
Thank you! Is Holy your first name? Just kidding, I love your videos!
These are excellent and good common sense guidelines.
Unfortunately, most financially ignorant people are not capable of following your guidelines.
I have witnessed many failed families, and even up to the point of losing everything, they still didn't see their spending or habits as faults.
This is spot on advice however it is all predicated that the work ethic and political will associated with that work ethic stays balanced. Things are changing faster than investors, retirees and savers can react.
Thanks for this clear overview!
Coming from a relatively poor background I had a great, if inadvertent, lesson in how and why to manage money.
Typical 9-year-old kid, I "needed" to buy a 50c comic book and asked my Dad for an advance on next-week's 25c allowance. His response was, "No. I don't know where our next meal is coming from." Yikes!
True or not, this hit me pretty hard as a pre-teen. My comic book would have to wait. But I thought, "Well, I really want to know where my next meal is coming from." So, saving those few extra pennies in my pocket would become my lesson. I'm not sure if that was my Dad's intent, but it got me thinking.
...and the lesson has treated me very well, even if the comic books and bubble gum didn't happen as often.
Note: Certainly, I didn't know it at the time, but if I'd been able to actually buy those comic books, and kept 'em properly, they'd have been worth a LOT more today! There's a lesson in investment, even if retrospectively.
- Cheers
Similar background to me! In the words of Lex Luthor: some people can read war and peace and come away thinking it’s a simple adventure story. Others can read the ingredients on a chewing gum wrapper and unlock the secrets of the universe…
You can't retire with debt plain and simple, pay off everything by any means necessary then if you retire poor it's still better than retiring with debt.
Great Video!
My biggest regrets come from impulse buying.
I become convinced that I need something I don’t really need.
My new rule: i listen to the salesman, take the brochure, thank him and say “I will give this some thought. If I am interested, I will get back to you”
Don’t be caught thinking time is of the essence, or if I snooze, I will lose.
Like the Buddy Holly rock song “Think it over”.
Also- Be aware of giving someone your time, with the promise “You are in my will”
Many estates change hands on a death bed.
Very good video and advice. I've said this before on a similar video that a major point about how people stay poor is not doing their own life maintenance. They have a housekeeper, a lawn person, an accountant, a car detailer and a handyman. Today maybe they spend on regular food/grocery/product deliveries. We grew up in a small town and if we didn't clean it or fix it, it didn't get done because there was no "guy" to call. This use of funds for personal convenience, dare I say, might be referred to as laziness and can drain one a couple of hundred thousand dollars during most folks able bodied years. If this is you - you do you - but the point is made. I retired at 55 years old, and fortunately am still able do ALL of my own household maintenance. Even more rewarding, am financially able for the past 10 years since then to privately fix local retired folks appliances, small engines, PCs, do some A/C diagnostics for home/auto and such 3 days/week (on my schedule) FREE from service charge except parts giving me a purpose in retirement. The charity is approaching approximately $400,000 in free services and costs nothing more than gas and time being a helpful neighbor.
I wash and detail my own cars and do my own home maintenance. I'm still young enough. Some day I'll have to pay someone, better invest now, it'll cost more $$$ then...
I’m 55 too, and it amazes me how many people use Grub Hub and Uber Eats.
That's a poor person's mindset! The time you're wasting doing repairs can be used to generate income. If you make $100/hr, paying a housekeeper $40/hr for cleaning is wise. Plus hiring an expert will help you avoid costly mistakes. I thought I was smart doing my own taxes, but I paid the government 2x much as I would've paid the accountant when I should've paid nothing. Never again!
@@manfredmann2766 Indeed but delivery convenience is what modern advertisers promote as the way to go (if one falls into it). Yes it's convenient but when it becomes habitual, often by average or below average income households, the using up of their limited resources is the rub. I've also done limited analysis on convenient toll roads when I was reviewing my daughter's family expenses where they might save and found the actual cost/per time saved was about $60/hour! Don't get me started on convience stores where I see people buying high priced cigs, drinks and snacks daily. I'm not here to tell others what choices they should make including conveniences but share my views on how to keep one's costs low while still enjoying the journey. Also, happy 55 to you but I am 65 now, 10 years ago I stopped working for pay at 55/retired.
Credit card is because my online doesn’t take cash . I pay my credit card bill online before it’s due .
two words: debit card
My credit card is easier to deal with than a bank if it becomes hacked, and it has .
@@DrSchor You get CASH BACK on credit cards. Be smart and have automatic payments to pay off every month’s balance!
@@johnp139 agree I’m in my 60’s and never held $1 balance that I didn’t pay . I’m not paying credit card interest.
#11 - Don't lease your vehicles.
Take a 3-5yr loan and drive them for 10yrs or more.
Got a 1996 Honda that was the cheapest new car I could afford back then. Still runs. Looks old but I will drive it until it needs major work. Figure roughly 27 years made it a good buy.
@@shrikeofterven6006 you've got it figured out.
I have a habit of taking jobs that don't pay me what I'm worth. That's what's keeping me poor.
If it is any consolation to you, and you do not have a huge amount of college debt, then do not feel too bad.
I know a coworker in his mid fifties who told me he has almost 200 k in student debt and is making an above average income, but still lives from paycheck to paycheck.
I tell younger people to learn a trade, if they are unsure of what to do, or if they are underpaid.
My weakness is that my job allows me to draw from my next paycheck. I'm living beyond paycheck to paycheck. So I have to pay bills exactly when they are due. Usually a week before I actually get paid. But they charge me $5 bucks per advance. I make decent money. I was never taught how to save or manage money. So I'm always playing catch-up.
I’d recommend you slowly work your way out of this cycle with a little spending discipline. Then keep going and build an emergency fund.
the number one reason :: SPENDING MORE THAN YOU HAVE - simple economics (from ECON-101)
Thanks
My father chided my brother that money burned a hole in his pocket. Spending on big trucks with big wheels and tires all to look cool not smart. My high school math teacher was angry one morning as one of her students was going to quit school to support a car! Her comment “all cars eventually end in the junk yard.”
all people return to dust
New to your channel sir. Great content.
An investment is something that pays you - debt is something that sucks money from you 😮
Spendees vs Savees.
Wish more people would listen..!
Subbed cause you're funny 😄
A great set of bad habits. The credit card one is key. 18% is a huge hole to dig for yourself.
I began my investment journey at the age of 33, primarily through hard work and dedication. Now at the age of 58, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
*@sloanmarriott5* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Gertrude Margaret Quinto, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I feel like eating out is a bad one. Not just because its ungodly expensive, but also because most of the time these restaurants serve food thats worse for you than alcohol from a health perspective. Its like a double whammy - you get poorer and your health degrades lol
Definitely talk to your children about financial investments , to few parents talk about money within the family .
too few parents can spell too
I paid off and cut up my 1 and only credit card 33 years ago.
Credit cards as fine when used properly- use it as convenient cash for purchases, then pay the balance in full when it’s due vs the minimum payment- I haven’t paid interest in > 20 years.
why can't you trust yourself?
@@DrSchor i have never needed to use credit. If I don't have the money, I don't buy.
@@Iceaxehikes That's not the point. We have credit cards, plural. Each one has different rewards and sometimes those rewards change. We spend on the card that gives us the most desirable benefit. In most cases that is a cash back program of 2 to 4%. That is like getting a discount on items we need when they aren't even on sale. We flew to Hawaii last February on the miles we earned for 2022. We never carry over a balance and so the bonus is real.
We don't buy things we don't need. They are simply normal expenses.
@@bryanwhitton1784 you are supporting a system that enslaves less fortunate people. That IS the point.
I will not play.
#1 is living below your means .
I know. I filed bankruptcy because of my overspending on hunting trips and travel! Living beyond my means 😢
Having a credit card balance is the worst thing anyone can do with interest averaging 20-29%.
Paying it off is (one of) the best investments in the world!
@@HolySchmidt Never having one is what intelligent people do.
Not at all. Payday loans are the worst.
You forgot a HUGE one no divorce..
Several commenters mentioned Dave Ramsey. While his advice is not perfect, many, if not most, people would be better off if they followed Dave's advice.
Excessive materialism not supported by income creating too much debt.
All good advice, however, i moved my investments to more conservative investment portfolios, had to stop the bleeding and now just sitting on the sidelines for the last 9 months waiting for positive signals to jump back in. Also, what are your thoughts on the possibility that homebuyers with good credit may be paying more in interest than people with lower scores? I ask this because most of your recommendations, if implemented, would help boost your credit score
help us out. what are the positive signals?
You are timing the market. This is not good. By the time you realize it’s time to jump back in, you’ve lost the gains you could have had. You are also buying high when you should be buying low. Back in 2008 when people were freaking out and moving money into “safe” investments, we stayed the course and kept buying. In two years, we had many thousands more than what we had “lost”.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them..
#1 thing keeping you poor, having to waste money period
Sometimes people have to start over and I would like to hear some advice for people who have to start over at age 70 because maybe they were financially wiped out with medical debt or a tornado or massive flooding or wildfires
simple: to start over, get a job.
@@DrSchor for people who have no physical disabilities that's great advice but for the others at 70 years old there has to be a different strategy.. it probably entails making huge geographic change...
Buy Insurance!!!!!
Very good advice!
I would like to add that purchasing gigantic trucks, vans, and SUVs is literally double or even triple the cost of a car.
Being fat consumes an additional two hundred to five hundred dollars per month per person in a family. In addition, it means the person is of no use in the military should we have a war. The Pentagon has issued a report that the majority of volunteers are rejected for being fat.
Never looked at the fatness factor that way.
All I know is that I work my arse off to stay thin at 55, and work harder to pay higher medical insurance premiums because of people not taking care of their health, granted you have the capability to control it. There are diseases out there that cause obesity, but most people choose that lifestyle.
The auto thing is just stupid in and of itself. Knock on wood, if I wreck my paid off car, then I will buy another paid off car, or use a bike in the interim.
Oh yes and those ridiculously huge SUVs and Trucks (unless you work in agriculture) make the gas prices higher. It is all because of the sheep mentality.
You should always use credit cards but only if you can pay them off each month. It will build your credit. So you can take loans for a car of house. Or qualify for an apartment.
We are a retired couple in our 60s with no debt, no major expenses and plenty of savings in taxable retirement funds.
Say we need $100k to purchase a house beyond the cash from the sale of our old house.
One option would be to take out a $100k mortgage and keep our income in the 12% federal income tax bracket.
Paying as much towards principal as we can each year.
The other option would be to take $100k from retirement funds, so no debt,
but our 2023 federal income tax bracket would likely rise to 24%.
What type of professional would be best to advice us? Certified Financial Planner™ (CFP) · Chartered Financial Analyst (CFA) · Personal Financial Specialist (PFS) ·Enrolled Agent (EA) · Certified Public Accountant (CPA)? Thanks.
Hello sir, could you put a time stamp on each points. It’s easier for the viewers to navigate
I appreciate this channel and all the info given, don't like the goofy noises recently added in.
Holy 🎉🎉
Live within your means
Dont be afraid to hold on to your money. It seems like folks are always in a hurry to spend each and every check as soon as possible.