it's impossible for someone to become wealthy suddenly. A valuable lesson I've picked up from billionaires is to always invest in a diverse range of securities and to put in background effort, even if we usually just see the final product. I intend to profit from the approximately $200k that I want to put in stocks this year.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
Most people either do not understand the power of compound interest, or are just impatient. For the average Joe, however, I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-- lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne’” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
1. Having kids 2. New cars (especially trucks/SUV's) 3. Eating out Eliminating those three things from your life can make you wealthy beyond your wildest imagination! I'm a Millennial DINK and my wife and I have so much $$$ saved for retirement and we paid our house off last year! It's the easy life from here on out boys!!!
@johnsonspark171 I would add both arrests and vices/addiction to your list. And expand having kids to 'having kids at the wrong time' and 'marrying the wrong person.'
Take head that you have to pay a fee just to sit in the office outside of the doctor's office and just outside of the emergency room hundreds of dollars. Just to sit there it's called a facilities fee...not covered by health insurance
To be fair, the bigger reason for that is that medical bills in the USA are absolutely ridiculous. Our healthcare system needs a LOT of changes. Even those in good health can fall victim to this.
@@mialovestravel The US healthcare system is overwhelmed with treating unnecessary and avoidable health issues. The availability, quality and timeliness of care would greatly improve if people simply started taking better care of themselves.
you are getting this totally wrong. Medical bills are a problem in US not for poor health but for absurd pricing and insurance payments with poor coverages, with most good insurances tied to good jobs. You get laid off and you get a health scare like emergency room or a surgery or cancer and now you are looking at $20K to $30K medical bills easily. I got an emergency gallbladder surgery due to infection spreading 3 months ago that came out of nowhere. Got billed for $50K but I only paid $6K deductible and coinsurance due to having a good insurance. If I did not have a job with a good insurance like that, I would also be bankrupt now. I could also do the same surgery back in my home country in Asia for less than $500 only.
Seen people drive a Tesla Plaid with car payments $3900 a month, rent $1600, on a $7000 net monthly income and then complain about inflation. Also seen where people buy a $900K Townhome at a mortgage payment of $5000 a month and then complain that $160K is not a good enuf pay.
My neighbor is a renter like me. We both pay $1900 a month. Not bad considering how expensive things are. We just bought a 2023 Tesla model Y, a 2023 Corvette, a 2022 Dodge Ram and a 2022 Porsche Panamera. The guy has double his rent in car payments over his rent. He could be investing and be retired in 10-15 years but instead would rather look flashy and remain poor.
I would put "not earning enough" in the top 5. It's not popular to bring up but the reality is that you're going to struggle if you're below the median income in your area. The baseline cost of living settles at the level that below-median earners can afford by spending all of their income, which leaves very little room for saving and investing. My top 5: 1) Buying too much house, which is basically expert level lifestyle creep 2) Divorce (being single in general doesn't help) 3) Regular use of credit for lifestyle spending (car payments, credit cards, HELOCs, cash out refi's, etc) 4) Not taking care of your health, which will gut you in the long run 5) Not earning enough income
A big key to our wealth-building success - the only debt we have ever carried was a 20% down on our home and our monthly payment including taxes and insurance was never higher than 15% of our income, ultimately less than 10%. And we did not move every 3-7 years like so many folks do. Selling and buying a home can easily eat 8-10% of your equity every time you repeat it. (Caveat: I did have student debt prior to getting married, but I paid it off within two years after school.) This enabled us to max out retirement savings by the time we turned 30.
Sooo many are spending money on eating out, multiple times a week or every day. Even paying premium for delivery. I've never seen a wealth killer as bad as what people spend on food, to be honest. Even worse than money spent on a car, which is also "stupid money" - Inflation isn't an excuse here. No matter what. It's cheaper to go to the supermarket and cook yourself. It's a myth it's more expensive than eating out.
It's insane what people spend eating out and on delivery. Sure, if you're in a high enough paying job working long enough hours, then eating out or outsourcing your food costs makes sense. But, too many will claim that they have no time to make food and/or it's more economical to eat out are simply too lazy or bad at math.
My wife is a chef. We both love to cook. We go out to eat once a month for date night. I agree though even once is expensive. Paying for delivery is insane. Especially if you are in debt.
Basically every episode of financial audit with Caleb hammer is people spending an outrageous amount on food. It comes down to laziness and/or can’t handle having a basic sandwich for lunch or dinner
I've been watching you guys for years, and I can safely say this is one of the most concise episodes you have with some of the most beneficial wealth building information. For those of you who are new to channel, do yourself a favor and take heed of this information, and then start applying it. You will thank yourself later for it.
Great episode, I love how enthusiastic they are about rather mundane things, but it is those mundane things that will get you financial independence. I have done fine, retired at 55, but I regret not being aggressive enough when I was in my 20's. In hindsight, it should have all gone in an S&P index back then. Did some things right, waited on buying a house, and bought modest cars that I drove forever, home mortgage was really the only debt I took on and that was on a modest house. Over the years I have listened to many friends and coworkers lament about their financial situations and I am thinking to myself "yeah, but look at that house your living in and that car your driving, was it necessary to take on all that extra debt for those things? Did they really make you that much happier?".
I was all in on becoming wealthy until 13:45 in the video. At which point I paused the video, went and watched the 2024 Corvette e-ray commercial and realized I'd rather be broke driving that car. Man was that commercial convincing!
Procrastinating in your career is also a wealth killer, I am struggling with that which is not allowing me to push myself for higher paying positions that my peers at the same level have
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
On the last point about Fear, kinda surprised you didn't expand it into where Fear and Greed have a monster child - Fear of Missing Out (FOMO). People can sometimes try to make up for "lost time" by taking a huge gamble on something speculative and end up losing way more than they would have if they just stuck to a conservative plan.
So I have a question... have you done videos on people with pension plans. I'm a firefighter and a big fan of what yall put out. But there's not alot of info on people who have a pension. So wanted to see your thought... i would be willing to email more info if needed. thanks.
i worked in the mortgage industry from 2007-2010 and now in credit card collections and the stories will scare you to death on how they ended up in that situation
Something funny that I have been seeing is some restaurants lowering their prices recently. Not back to pre pandemic levels, but enough to notice. I think a lot of restaurants jumped the shark and raised prices too much too fast and their customers stopped coming. McDonald's is even now claiming in their investor calls that they raised prices too much, which I find hilarious.
As someone that rarely eats at restaurants I also find the greed hilarious. Instead of just raising prices as absolutely necessary when their costs went up, they just arbitrarily raised prices to make record profits and blamed it on supply chain issues and inflation. I won't be sad to see many of these places go out of business.
Interesting that you used food and energy prices in your inflation example, when those are usually excluded from the core inflation rate due to their high volatility.
Does principal payment portion of the mortgage count as saving or debt servicing? I keep the Intetest, taxes, and insurance part of the total mortgage payment under 25% of my income, but if you include principal, its like 35%. My principal payments account for like 45% of the total mortgage payment. I look at principal payment as forced saving that ill get back when I 1031 or sell it. What am i missing?
Great highlight on the crucial role of financial guardrails in navigating wealth killers like inflation and housing affordability! 🛡 Staying disciplined with spending and investing consistently despite economic fluctuations is key to long-term financial resilience and growth.
Is it possible to make your cut up videos on a separate channel? Like I feel like I watched the longform version and then my feed is overwhelmed by all these short videos. It’s also hard to find the longer videos because I have to sort through Short cuts before I find the long one
I wish their was a class for young adults to attend that can be added to school curriculum. Now that I have a budget and doing everything for retirement. I can say that I am not a rudderless boat in this ocean of finances I feel like I’m heading to that island of retirement. Thanks again
Best thing for me is to actually compare myself to people in worse situations, like just being a healthy person with family and friends to support me is a lot more then some people have
I work, go home, provide myself with a little bit of entertainment to relax before bed and do it again the next day. I have become far better off financially by cutting off expensive hobbies by doing the bare minimum. Continue this for my last 20 working years and once I'm a millionaire, then I can start doing whatever I want.
I am very similar but I also consider myself easily entertained/don't get bored easily. I think this really saves me a bunch of money over a long period of time.
As far as avoiding comparison goes, nobody lays it out better than the late Thomas Stanley in "Stop Acting Rich," the last book in the Millionaire Next Door series. For those trying to keep up with the Joneses, Stanley admonished, "Get Out Of Jonesville." I have always meant to have a T-shirt made up with that message.
I'm going to push back on their advice to have a 3 year car loan. Yes you should budget to pay the car off in three years or less BUT if you sign a 3 year loan it can and most often times does have a pre-payment penalty. If you sign a loan for 60 months or more it CANNOT have a pre-payment penalty by law. It is better to sign the longer loan (which often times has a lower APR) and just double up on your payments.
As someone who graduated college in 2021, it sure seems like it was the absolute worst timing. Couldn’t afford to buy a home before graduation, and definitely can’t afford to buy one now. Won’t bother trying to compare myself to anyone unless I want crippling depression. Costs have gone to the moon in nearly every aspect of life. How can any in this generation expect to live ‘the American dream’ unless they’re looking at run down shacks for homes?
The Gas one is super annoying. America makes enough oil to supply all of our needs 100%. We just export it. Also, if we got rid of oil subsidies, the last calculation I saw was that oil prices would drop by $.50 per gallon. We shouldn’t have to subsidize oil companies when they make billions of dollars every year.
I miss a bit of macro economics in this video. Sure, inflation is a wealth killer, but what caused inflation? One of the factors is rising housing prices, but what causes that?
At 2:32 I think thats a little disangenuous. When the quarantine hit, nobody was driving. Previous to it gas was above $3 a gallon around me and went down to below $2, then jumped to almost $4 and is now mid $3.5. If your going to grab a year. Grab 2019.
The scarry thing about buying a house right now is that averages to revert to the mean. So if houses typically appreciate 4-5% on the long term average, and we have been well above 4-5% the last few years, then it means that we may see "less than stellar" returns on housing the next few years (not that 4% is great to begin with). Buying now, and then seeing your home value sit relatively flat the next few years would hurt a lot if you were already stretched to get into a house in the first place.
If you plan on living in your home 10+ year then why does the appreciation value even matter? I don’t care what my home is worth and never think about it. I’m living here until death do us part or I hit the lottery. FYI I don’t play the lottery.
Did you all not hear the part where they explained why they started from 2020? It’s just a continuation from the last time they did a comparison. You can look at the previous episode if you want a different reference point.
Maybe I’m wrong, but the way I think of a “case study” is when you look at a real individual case (i.e. person). In my mind, when you guys say “case study”, you’re actually talking about a hypothetical, not a case study. Is it just me…?
Solution: 1) Work from home and most things delivered. 2) Live at home with parents for free. 3) Debt? 4) Happily single 5) Still under parents health plan and no transportation liability.
These are all good if they're options to you but many people don't have these options. Most parents want their kids out in their 20s and work from home jobs tend to pay significantly less and be significantly harder to get on average. I make $23/hr now but when I worked from home I made just a mere $7.50/hr. Granted, I was working from home in 2020 and now I earn my larger pay rate in 2024 so part of that difference is inflation, but it certainly isn't all of it.
Please help me to understand this approach to inflation the Federal Reserve is taking. They increased interest rates to fight inflation in a distal way as relates to consumer products, but this had a proximate effect on home mortgage rates. So are we materializing the risk to have home costs be hundreds of dollars more per month than they were by trying to mitigate the risks of a dozen eggs costing $3 instead of $1.50?
Their strategy worked, because it discouraged borrowing for large assets like homes and equipment, to cool demand. We don't have $5 eggs for that reason. Lower mortgage rates encouraged people to get way more home than they otherwise could. The problem is that developers are not building starter home stock anymore, and the existing starter home stock needs major updates right around now.
@@vulpixelful Ok, fair enough. I don't know that I am convinced that there would be $5 eggs, but even if that is the case is it not better that people have $5 eggs than a $3000 mortgage when it otherwise would have been $1500?
@@docmartin42 It's more like people should be finding homes where that $1500 mortgage is possible. The problem is that those starter homes aren't being built. If on the other hand people could continue to make up for that by buying more home with lower rates, it doesn't set them up for success--they may not be able to comfortably afford the new payment once the property taxes are reassesed. That's a contributor to the cost of living crisis. A lot of people got a rude awakening with their property tax bill increases.
In the time I have been in the US, here are the top 5 1. Social Security taxes. FICA taxes prevent most people saving in a private retirement account 2. Property Taxes. There's no good reason people should be paying $1000 per month property taxes to a local government in perpetuity 3. Infinite government spending. That causes more and higher taxes which instantly reduces your standard of living 4. Credit Cards 5. Inflation. Normally tame but under the current regime it's a massive wealth killer. Could be #1 soon.
Regime has diddly to do with inflation since its a global thing. Property taxes where I live pays for infrastructure. Do I want a separate fee for every repair and upgrade? Nope I sure don't.
@@laundrygoddess4 I think the poster is saying $1000 per month is more money than it should be for the services it provides to the residents in that area. Not that property taxes should be nothing.
I'd never recommend anyone buy a luxury car unless they can pay cash. You don't borrow money for luxuries. Just my opinion. That's like borrowing money for a vacation.
Your first example of gas as a measure of inflation seems to miss the point. I get that it's a driver of inflation but that price increase isn't caused by inflation. It's a very different measure than groceries, housing, etc
You don't have to watch influencers on social media trying to get you to buy stuff. You can watch money guys, and there are all sorts of frugal, frugal retired living, minimalist mom, cheap RV living from Bob Wells, living big in a tiny house, never too small apartment living, and all kinds of channels about how to live cheaply, retire cheaply, how to live as an expat in pretty much every country, how to learn new languages for free tutorials, less is more, etc. My UA-cam feed is filled with that stuff. UA-cam is great. I also like to put on a cleaning video when I have to clean lol. Search for these videos and watch them and your life will improve. Totally stay away from the architectural digest channel lol.
22 years old with $12,400 in my 401k and $6,900 in my Roth IRA :) my goal is to have my first six figures by 25, I’ve been working hard and saving like crazy 😆 (this would include all accounts, not just retirement accounts since I have brokerages with Schwab, fidelity, Robinhood and ML between retirement, equity at work, HSA, and independent investing. Oh and regular high yield savings)
The cost of everything we buy is near 100% due to the cost of gasoline and diesel. Imagine what the world will be like when the economy is no longer 100% dependent on gasoline and diesel. That's the future I want to live in.
"Have financial guardrails in place"? Guys, the whole point is that people are having financial guardrails imposed upon them. Maybe it's time to create a "plan B FOO" that better reflects what so many people are facing. People would appreciate it.
I don't think that our 2.49% on our car loan is killing our wealth. We still reached a 7 figure net worth with other debt too and we live in a high cost of living area in an expensive state.
I am at 450k net worth at mid 30's. I think I am gonna hit 7 figures by 40 or so but I have a 30 year mortgage with a 2% interest rate, a luxury electric vehicle with a 1.5% 60 month rate (my gas costs went from 500 a month to 100 and I have solar). I don't think those things are wealth killers because they haven't impacted my savings rate and in fact, they allowed me to save even more (not having to worry about rent and energy costs is pretty nice). I would say my mortgage and car is around 25% of my monthly gross income. No cc or student loan debt either so I am in a very comfortable position.
@@Diggler569 Your mortgage is lower than our mortgages at 2.99% and 3%. That's awesome. What electric vehicle are you driving? When did you get that amazing 1.5% rate? We have a Tesla model Y (not luxury) and we are spending between $40 to $50 a month to charge it without solar. We are paying for a program under our electric company in addition so we are charging when it is the cheapest (after midnight). No student loans and no credit card debt ever (we are paying it off every month). Our ages are 39 and 40 and we have kids.
Car strategy may be a bit unrealistic as the used car market price for vehicles has increased significantly. It's important to select a vehicle based on total cost of ownership over the time period you plan to own it, and safety. Somethings are worth spending money on because if you dont make it to 50 years of age, whats the point of saving?
@@goraidersndodgers It is run by seven members, or "governors," who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate… so people in the government 🌚 same thing
Guys, as has been stated, you can't tie inflation to gas prices in 2020....🙄 and then using egg prices...please, anyone who reads knows it was tied to a avian flew that wiped out a large number of egg-laying hens...it's like co.paring usedcar prices in 2021-2022 to now, deflation? You guys are better than this. Actually a little disappointed....☹️
18:30 you could make that example even more impressive, especially since people think they can just do more later... You can double the contribution each decade you start later and never catch up. You could even have them all contribute their amount for the remainder of the 40 years and they won't catch up. You could start with $5k for 40 years then $10k for 30, $20k for 20, $40k for 10. The numbers don't matter but everyone is going to say they can't save $10k in their 20's so make it half 😂
Checked this channel years ago and rolled my eyes at your sample case studies. Years later you are still here using eight percent and ten percent return over *DECADES* to prove the power of compounding. Yes, compounding is great, but you are deliberately deceptive assuming 8-10% returns over *DECADES*. It's ridiculous and a disservice to the innocent viewers watching.
it's impossible for someone to become wealthy suddenly. A valuable lesson I've picked up from billionaires is to always invest in a diverse range of securities and to put in background effort, even if we usually just see the final product. I intend to profit from the approximately $200k that I want to put in stocks this year.
It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
Most people either do not understand the power of compound interest, or are just impatient. For the average Joe, however, I think it is just best to invest in the S&P 500, and just wait, which is reliable, albeit extremely long-- lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the latter.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne’” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
Yes!! I’ve had roommates for 3 years …after the hit to my pride, I’m SO grateful for the freedom it’s given me
0:45 Inflation
9:36 Comparison
17:15 Procrastination
24:46 Debt
31:54 Fear
1. Having kids
2. New cars (especially trucks/SUV's)
3. Eating out
Eliminating those three things from your life can make you wealthy beyond your wildest imagination! I'm a Millennial DINK and my wife and I have so much $$$ saved for retirement and we paid our house off last year! It's the easy life from here on out boys!!!
@johnsonspark171 I would add both arrests and vices/addiction to your list. And expand having kids to 'having kids at the wrong time' and 'marrying the wrong person.'
1. Poor health (particularly in the US). There is a reason why medical bills are the number one cause of bankruptcy in the USA.
Take head that you have to pay a fee just to sit in the office outside of the doctor's office and just outside of the emergency room hundreds of dollars. Just to sit there it's called a facilities fee...not covered by health insurance
Edut: heed
To be fair, the bigger reason for that is that medical bills in the USA are absolutely ridiculous. Our healthcare system needs a LOT of changes. Even those in good health can fall victim to this.
@@mialovestravel The US healthcare system is overwhelmed with treating unnecessary and avoidable health issues.
The availability, quality and timeliness of care would greatly improve if people simply started taking better care of themselves.
you are getting this totally wrong. Medical bills are a problem in US not for poor health but for absurd pricing and insurance payments with poor coverages, with most good insurances tied to good jobs. You get laid off and you get a health scare like emergency room or a surgery or cancer and now you are looking at $20K to $30K medical bills easily. I got an emergency gallbladder surgery due to infection spreading 3 months ago that came out of nowhere. Got billed for $50K but I only paid $6K deductible and coinsurance due to having a good insurance. If I did not have a job with a good insurance like that, I would also be bankrupt now. I could also do the same surgery back in my home country in Asia for less than $500 only.
Seen people drive a Tesla Plaid with car payments $3900 a month, rent $1600, on a $7000 net monthly income and then complain about inflation.
Also seen where people buy a $900K Townhome at a mortgage payment of $5000 a month and then complain that $160K is not a good enuf pay.
My neighbor is a renter like me. We both pay $1900 a month. Not bad considering how expensive things are. We just bought a 2023 Tesla model Y, a 2023 Corvette, a 2022 Dodge Ram and a 2022 Porsche Panamera. The guy has double his rent in car payments over his rent. He could be investing and be retired in 10-15 years but instead would rather look flashy and remain poor.
They are entitled and stupid
I would put "not earning enough" in the top 5. It's not popular to bring up but the reality is that you're going to struggle if you're below the median income in your area. The baseline cost of living settles at the level that below-median earners can afford by spending all of their income, which leaves very little room for saving and investing.
My top 5:
1) Buying too much house, which is basically expert level lifestyle creep
2) Divorce (being single in general doesn't help)
3) Regular use of credit for lifestyle spending (car payments, credit cards, HELOCs, cash out refi's, etc)
4) Not taking care of your health, which will gut you in the long run
5) Not earning enough income
A big key to our wealth-building success - the only debt we have ever carried was a 20% down on our home and our monthly payment including taxes and insurance was never higher than 15% of our income, ultimately less than 10%.
And we did not move every 3-7 years like so many folks do. Selling and buying a home can easily eat 8-10% of your equity every time you repeat it.
(Caveat: I did have student debt prior to getting married, but I paid it off within two years after school.)
This enabled us to max out retirement savings by the time we turned 30.
Sooo many are spending money on eating out, multiple times a week or every day. Even paying premium for delivery. I've never seen a wealth killer as bad as what people spend on food, to be honest. Even worse than money spent on a car, which is also "stupid money" - Inflation isn't an excuse here. No matter what. It's cheaper to go to the supermarket and cook yourself. It's a myth it's more expensive than eating out.
Agree completely, the food delivery trend is just outrageous and doesn't seem sustainable.
It's insane what people spend eating out and on delivery. Sure, if you're in a high enough paying job working long enough hours, then eating out or outsourcing your food costs makes sense. But, too many will claim that they have no time to make food and/or it's more economical to eat out are simply too lazy or bad at math.
My wife is a chef. We both love to cook. We go out to eat once a month for date night. I agree though even once is expensive. Paying for delivery is insane. Especially if you are in debt.
Basically every episode of financial audit with Caleb hammer is people spending an outrageous amount on food. It comes down to laziness and/or can’t handle having a basic sandwich for lunch or dinner
And the people that waste all their money on nonsense are the same people say the system is rigged against them 😂😂
I've been watching you guys for years, and I can safely say this is one of the most concise episodes you have with some of the most beneficial wealth building information.
For those of you who are new to channel, do yourself a favor and take heed of this information, and then start applying it. You will thank yourself later for it.
Great episode, I love how enthusiastic they are about rather mundane things, but it is those mundane things that will get you financial independence. I have done fine, retired at 55, but I regret not being aggressive enough when I was in my 20's. In hindsight, it should have all gone in an S&P index back then. Did some things right, waited on buying a house, and bought modest cars that I drove forever, home mortgage was really the only debt I took on and that was on a modest house. Over the years I have listened to many friends and coworkers lament about their financial situations and I am thinking to myself "yeah, but look at that house your living in and that car your driving, was it necessary to take on all that extra debt for those things? Did they really make you that much happier?".
I'll save you some time:
1) Corn
2) DraftKings (Parlays specifically)
3) Not having unlimited Data
4) Auburn Fans
5)
As an Auburn fan this made me crack up.
@@makjmk2408 ❤️
😂
War Eagle
wdym unlimited data
100% agree! #1. Cars are the worst!!! & Credit Card debt
I've basically seen them talk about the same thing countless times lol but I want to keep my mindset locked in.
I was all in on becoming wealthy until 13:45 in the video. At which point I paused the video, went and watched the 2024 Corvette e-ray commercial and realized I'd rather be broke driving that car. Man was that commercial convincing!
“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.” - Robert Kiyosaki
What are examples of liabilities that “they think are assets”?
@@sophialharper probably most material things like new cars, furniture, appliances, etc.that doesn't generate income.
Robert “just borrow someone else’s money” kiyosaki
That's how its done, Almost every rich person I know did that at one stage or another.
Rich people can afford assets and liabilities, poor people can only afford liabilities and consumables.
Procrastinating in your career is also a wealth killer, I am struggling with that which is not allowing me to push myself for higher paying positions that my peers at the same level have
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
On the last point about Fear, kinda surprised you didn't expand it into where Fear and Greed have a monster child - Fear of Missing Out (FOMO). People can sometimes try to make up for "lost time" by taking a huge gamble on something speculative and end up losing way more than they would have if they just stuck to a conservative plan.
There was no social media in the 90s but people still compared to others and lived beyond their means.
I have a friend who mocks everyone else for being addicted to social media on social media.
The duality of man
So I have a question... have you done videos on people with pension plans. I'm a firefighter and a big fan of what yall put out. But there's not alot of info on people who have a pension. So wanted to see your thought... i would be willing to email more info if needed. thanks.
i worked in the mortgage industry from 2007-2010 and now in credit card collections and the stories will scare you to death on how they ended up in that situation
Something funny that I have been seeing is some restaurants lowering their prices recently. Not back to pre pandemic levels, but enough to notice. I think a lot of restaurants jumped the shark and raised prices too much too fast and their customers stopped coming. McDonald's is even now claiming in their investor calls that they raised prices too much, which I find hilarious.
As someone that rarely eats at restaurants I also find the greed hilarious. Instead of just raising prices as absolutely necessary when their costs went up, they just arbitrarily raised prices to make record profits and blamed it on supply chain issues and inflation. I won't be sad to see many of these places go out of business.
Interesting that you used food and energy prices in your inflation example, when those are usually excluded from the core inflation rate due to their high volatility.
However those are like...20% of peoples budgets.
Does principal payment portion of the mortgage count as saving or debt servicing? I keep the Intetest, taxes, and insurance part of the total mortgage payment under 25% of my income, but if you include principal, its like 35%. My principal payments account for like 45% of the total mortgage payment. I look at principal payment as forced saving that ill get back when I 1031 or sell it. What am i missing?
Cars. All the liabilities associated with your house and people not comparing the "appreciation" to inflation.
1. Kids 2. Kids 3. Kids 4. Kids 5. UA-cam Premium
The top 5 things that will make your mid to late life meaningful:
1. Kids
2. Kids
3. Kids
4. Kids
5. UA-cam premium, fuck ads
@@luck3yp0rk93Just click skip ads and don't pay the premium.
Meaningful life:
1. Kids
2. Kids
3. kids
4. Grandkids
5. Grandkids
6. UA-cam
7. Future great grandkids.
So true, I’ve NEVER met anyone who didn’t have kids and is past 50 and is happy.
Great highlight on the crucial role of financial guardrails in navigating wealth killers like inflation and housing affordability! 🛡 Staying disciplined with spending and investing consistently despite economic fluctuations is key to long-term financial resilience and growth.
They're disconnected with the employment market
Is it possible to make your cut up videos on a separate channel? Like I feel like I watched the longform version and then my feed is overwhelmed by all these short videos.
It’s also hard to find the longer videos because I have to sort through Short cuts before I find the long one
I wish their was a class for young adults to attend that can be added to school curriculum. Now that I have a budget and doing everything for retirement. I can say that I am not a rudderless boat in this ocean of finances I feel like I’m heading to that island of retirement. Thanks again
Best thing for me is to actually compare myself to people in worse situations, like just being a healthy person with family and friends to support me is a lot more then some people have
I work, go home, provide myself with a little bit of entertainment to relax before bed and do it again the next day. I have become far better off financially by cutting off expensive hobbies by doing the bare minimum.
Continue this for my last 20 working years and once I'm a millionaire, then I can start doing whatever I want.
I am very similar but I also consider myself easily entertained/don't get bored easily. I think this really saves me a bunch of money over a long period of time.
As far as avoiding comparison goes, nobody lays it out better than the late Thomas Stanley in "Stop Acting Rich," the last book in the Millionaire Next Door series. For those trying to keep up with the Joneses, Stanley admonished, "Get Out Of Jonesville." I have always meant to have a T-shirt made up with that message.
I'm going to push back on their advice to have a 3 year car loan. Yes you should budget to pay the car off in three years or less BUT if you sign a 3 year loan it can and most often times does have a pre-payment penalty. If you sign a loan for 60 months or more it CANNOT have a pre-payment penalty by law. It is better to sign the longer loan (which often times has a lower APR) and just double up on your payments.
Love you guys - keep up the great work.
Any chance we could get a discord group? I really dislike Facebook
That gas one really isn’t fair since the demand for gas dropped so significantly during the pandemic that it should be an outlier
As someone who graduated college in 2021, it sure seems like it was the absolute worst timing. Couldn’t afford to buy a home before graduation, and definitely can’t afford to buy one now. Won’t bother trying to compare myself to anyone unless I want crippling depression. Costs have gone to the moon in nearly every aspect of life. How can any in this generation expect to live ‘the American dream’ unless they’re looking at run down shacks for homes?
Right there with you on that one.😂😢
You just graduated. The audacity of you to think you deserve to buy a home immediately afterwards is laughable
The Gas one is super annoying. America makes enough oil to supply all of our needs 100%. We just export it.
Also, if we got rid of oil subsidies, the last calculation I saw was that oil prices would drop by $.50 per gallon.
We shouldn’t have to subsidize oil companies when they make billions of dollars every year.
I miss a bit of macro economics in this video. Sure, inflation is a wealth killer, but what caused inflation? One of the factors is rising housing prices, but what causes that?
“Disheveled billionaires”. I was not ready to hear that on a Friday.
At 2:32 I think thats a little disangenuous. When the quarantine hit, nobody was driving. Previous to it gas was above $3 a gallon around me and went down to below $2, then jumped to almost $4 and is now mid $3.5.
If your going to grab a year. Grab 2019.
22:44 the dad voice peaking through
The C8 costs less than the big trucks on dealer lots now.
Fantastic episode. Love the 6 year example at the end to show my teenagers who just funded their Roths.
The scarry thing about buying a house right now is that averages to revert to the mean. So if houses typically appreciate 4-5% on the long term average, and we have been well above 4-5% the last few years, then it means that we may see "less than stellar" returns on housing the next few years (not that 4% is great to begin with). Buying now, and then seeing your home value sit relatively flat the next few years would hurt a lot if you were already stretched to get into a house in the first place.
If you plan on living in your home 10+ year then why does the appreciation value even matter? I don’t care what my home is worth and never think about it. I’m living here until death do us part or I hit the lottery. FYI I don’t play the lottery.
Yous are top dogs! I love your channel!
Did you all not hear the part where they explained why they started from 2020? It’s just a continuation from the last time they did a comparison. You can look at the previous episode if you want a different reference point.
Gas is 5.60 in California. Almost reaching 6 to 7 dollars in Los Angeles.
What if i don't put anything down on my car, take the lease, and only pay 3% of my income towards it?
Leases are for those who don't want to build wealth.
Maybe I’m wrong, but the way I think of a “case study” is when you look at a real individual case (i.e. person). In my mind, when you guys say “case study”, you’re actually talking about a hypothetical, not a case study. Is it just me…?
Solution:
1) Work from home and most things delivered.
2) Live at home with parents for free.
3) Debt?
4) Happily single
5) Still under parents health plan and no transportation liability.
Ah yes, the depressed basement dwelling hermit life.
These are all good if they're options to you but many people don't have these options. Most parents want their kids out in their 20s and work from home jobs tend to pay significantly less and be significantly harder to get on average. I make $23/hr now but when I worked from home I made just a mere $7.50/hr. Granted, I was working from home in 2020 and now I earn my larger pay rate in 2024 so part of that difference is inflation, but it certainly isn't all of it.
You should buy off lease only
Please help me to understand this approach to inflation the Federal Reserve is taking. They increased interest rates to fight inflation in a distal way as relates to consumer products, but this had a proximate effect on home mortgage rates. So are we materializing the risk to have home costs be hundreds of dollars more per month than they were by trying to mitigate the risks of a dozen eggs costing $3 instead of $1.50?
Their strategy worked, because it discouraged borrowing for large assets like homes and equipment, to cool demand. We don't have $5 eggs for that reason. Lower mortgage rates encouraged people to get way more home than they otherwise could.
The problem is that developers are not building starter home stock anymore, and the existing starter home stock needs major updates right around now.
@@vulpixelful Ok, fair enough. I don't know that I am convinced that there would be $5 eggs, but even if that is the case is it not better that people have $5 eggs than a $3000 mortgage when it otherwise would have been $1500?
@@docmartin42 It's more like people should be finding homes where that $1500 mortgage is possible. The problem is that those starter homes aren't being built. If on the other hand people could continue to make up for that by buying more home with lower rates, it doesn't set them up for success--they may not be able to comfortably afford the new payment once the property taxes are reassesed. That's a contributor to the cost of living crisis. A lot of people got a rude awakening with their property tax bill increases.
In the time I have been in the US, here are the top 5
1. Social Security taxes. FICA taxes prevent most people saving in a private retirement account
2. Property Taxes. There's no good reason people should be paying $1000 per month property taxes to a local government in perpetuity
3. Infinite government spending. That causes more and higher taxes which instantly reduces your standard of living
4. Credit Cards
5. Inflation. Normally tame but under the current regime it's a massive wealth killer. Could be #1 soon.
Regime has diddly to do with inflation since its a global thing. Property taxes where I live pays for infrastructure. Do I want a separate fee for every repair and upgrade? Nope I sure don't.
@@laundrygoddess4 I think the poster is saying $1000 per month is more money than it should be for the services it provides to the residents in that area. Not that property taxes should be nothing.
Not to mention, if you wait to save, it kills your lifestyle later because all spare income has to go towards savings/investing.
I'd never recommend anyone buy a luxury car unless they can pay cash. You don't borrow money for luxuries. Just my opinion. That's like borrowing money for a vacation.
They said the P word 😣 (procrastination) That is the one killing me.
My first question, at the time of the posting of this video, why are The Money Guys talking as if inflation is over and a thing of the past?
Your first example of gas as a measure of inflation seems to miss the point. I get that it's a driver of inflation but that price increase isn't caused by inflation. It's a very different measure than groceries, housing, etc
I don’t understand how someone’s house payment could exceed 25% let alone 40% plus. Insane
You don't have to watch influencers on social media trying to get you to buy stuff. You can watch money guys, and there are all sorts of frugal, frugal retired living, minimalist mom, cheap RV living from Bob Wells, living big in a tiny house, never too small apartment living, and all kinds of channels about how to live cheaply, retire cheaply, how to live as an expat in pretty much every country, how to learn new languages for free tutorials, less is more, etc. My UA-cam feed is filled with that stuff. UA-cam is great. I also like to put on a cleaning video when I have to clean lol. Search for these videos and watch them and your life will improve. Totally stay away from the architectural digest channel lol.
lawsuits and hospital visits
If you have money, your luck is going to run out, and they/them will COLLECT!
22 years old with $12,400 in my 401k and $6,900 in my Roth IRA :) my goal is to have my first six figures by 25, I’ve been working hard and saving like crazy 😆 (this would include all accounts, not just retirement accounts since I have brokerages with Schwab, fidelity, Robinhood and ML between retirement, equity at work, HSA, and independent investing. Oh and regular high yield savings)
Oh my gosh. We are not through a high inflationary period.of time we are STILLl in it. prices are still doubting..3% my A☆☆
When the market crashes ante up even more money, buy cheap.
Haven't finished the video yet but I wonder if they have children as one of the 5
The cost of everything we buy is near 100% due to the cost of gasoline and diesel. Imagine what the world will be like when the economy is no longer 100% dependent on gasoline and diesel. That's the future I want to live in.
It’s a bit weird to hear inflation has dropped while things cost 20 to 30 % more 🤷♂️
Housing, rent, and cars are really the killer inflation. Nobody going broke because of eggs or milk.
And 3-4% inflation is compounding and that 30-40% already baked in.
Cars, Interest, eating out, credit cards, and inflation
"Have financial guardrails in place"? Guys, the whole point is that people are having financial guardrails imposed upon them. Maybe it's time to create a "plan B FOO" that better reflects what so many people are facing. People would appreciate it.
6) Living in the United States
I don't think that our 2.49% on our car loan is killing our wealth. We still reached a 7 figure net worth with other debt too and we live in a high cost of living area in an expensive state.
No one really has car loans like that currently. Most are over 6% and then some
@@Kipketer911 I think that they are referring to any car loan regardless of the interest.
I am at 450k net worth at mid 30's. I think I am gonna hit 7 figures by 40 or so but I have a 30 year mortgage with a 2% interest rate, a luxury electric vehicle with a 1.5% 60 month rate (my gas costs went from 500 a month to 100 and I have solar). I don't think those things are wealth killers because they haven't impacted my savings rate and in fact, they allowed me to save even more (not having to worry about rent and energy costs is pretty nice). I would say my mortgage and car is around 25% of my monthly gross income. No cc or student loan debt either so I am in a very comfortable position.
@@Diggler569 Your mortgage is lower than our mortgages at 2.99% and 3%. That's awesome. What electric vehicle are you driving? When did you get that amazing 1.5% rate? We have a Tesla model Y (not luxury) and we are spending between $40 to $50 a month to charge it without solar. We are paying for a program under our electric company in addition so we are charging when it is the cheapest (after midnight). No student loans and no credit card debt ever (we are paying it off every month). Our ages are 39 and 40 and we have kids.
@Kipketer911 Anything below 4% is usually a good deal. I agree though that 6% and up is a killer
Is there nothing that Bo isn't excited about?
Has Bo ever worn flannel before?
I have never perceived him to be a flannel guy.
19:05 these names 🤣
good
Am I the only one that starts these guys videos and then realizes they are over a half hour long and am like nope ain’t got time for that.
Feel free to check out our shorter edited highlight clips. Thanks for the watch and comment 👍
Car strategy may be a bit unrealistic as the used car market price for vehicles has increased significantly. It's important to select a vehicle based on total cost of ownership over the time period you plan to own it, and safety. Somethings are worth spending money on because if you dont make it to 50 years of age, whats the point of saving?
You don't go on Facebook but you have a Facebook page okay
in 20 yrs i might just be dead...lol
Government also picks what they count in there inflation cost. 💀
The Federal Reserve does that. Not the government.
@@goraidersndodgers It is run by seven members, or "governors," who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate… so people in the government 🌚 same thing
Car culture ruins at lot of peoples finances
Whole life insurance...
I’m so excited about this just like boo 😉
I like to joke that the chickens/cows are going on strike or demanding higher wages when eggs/milk prices go up.
Corporal greed isn’t inflation.
Guys, as has been stated, you can't tie inflation to gas prices in 2020....🙄 and then using egg prices...please, anyone who reads knows it was tied to a avian flew that wiped out a large number of egg-laying hens...it's like co.paring usedcar prices in 2021-2022 to now, deflation? You guys are better than this. Actually a little disappointed....☹️
18:30 you could make that example even more impressive, especially since people think they can just do more later... You can double the contribution each decade you start later and never catch up.
You could even have them all contribute their amount for the remainder of the 40 years and they won't catch up. You could start with $5k for 40 years then $10k for 30, $20k for 20, $40k for 10. The numbers don't matter but everyone is going to say they can't save $10k in their 20's so make it half 😂
Taxes, Fees, and Market Volatility ... those are the three true enemies of wealth.
Where u getting gas for $3.36? 😅😂 I just paid 4.36
They forgot chilren and marriage
Electing Potatoes in the White House has consenquences.
It’s cute you think any president has a say in this
Some eggs are closer to $6 for a dozen.
Checked this channel years ago and rolled my eyes at your sample case studies. Years later you are still here using eight percent and ten percent return over *DECADES* to prove the power of compounding. Yes, compounding is great, but you are deliberately deceptive assuming 8-10% returns over *DECADES*. It's ridiculous and a disservice to the innocent viewers watching.
Omg you guys suck. Paying off a car in 3 years? Do you expect everyone to drive a 99 corollla?