At 45, I divorced my spend-o-holic spouse, I started to build my retirement. I purchased used cars (2 Toyotas). Eventually bought some land in the country (12 acres) and put a brand new single wide 3 br 2 ba mobile home on the property. Paid everything off before retiring at 59! Life is good with chickens, a garden, and my dog, Buddy! I don’t care about looking “rich.” I wear clothes from Tractor Supply and Walmart. I am the queen of my single wide trailer.😂❤ 🐶🐾
Wow! Looks like you have got it made! Do you use city water, a cistern, or did you have to build a septic system? What about electricity? Generator? What about the costs for the septic?
@@sundancer7381 I do have city water, but also have 500 gal of rain catchment for watering the garden. I have local EMC power and 2000 W solar generator back up with 1000 W of panels. Also a 2500 W Dual fuel (Gasoline and LP gas) generator. Septic was $3300 9 years ago. It's about $6800-$7500 for septic now.
*LOVE* this story! Good for you! I would also love to know how your former spend-o-holic spouse is doing these days. I bet his situation isn’t anywhere near as rosy.
As I've gotten older, I realize that I can't do all the house cleaning anymore. I value my limited time here on planet Earth more than I value a hoard of money in the bank. So I do have a cleaning lady, but it's not to impress anyone. It's to free me from drudgery and a sore back. I live within my means by driving a 9 year old car and paying cash for a small house in a very modest neighborhood. I don't spend money on status symbols, but I do prioritize my time and my health.
This is absolutely true. We have always lived way beneath our means. We retired at 50 and 55 from professional jobs of 25 and 30 years. We immediately started working, I as a housekeeper for independent homes and spouse for a small mom/pop retail hardware store. No one has a clue how financially free we are. We drive a simple vehicle, non name brand clothes, and live in a very small cottage in a rust belt town. We live well, eat well (at home) and sleep well. We look very poor. We are not!
I like looking poor. 1) people generally leave me alone 2) people don't argue with me (and sometimes reveal secrets). 3) I am invisible unless I want attention. Inner peace.
Just reading all these comments, I feel like the people who SHOULD be watching this video are not. And those of us that are watching, are already doing these things
Exactly! And it's heart-breaking seeing friends with good incomes who can "never get ahead." Yeah, well, there's a reason. All of us have a certain amount of money. If people spend more than that and never save -- shock, shock -- they'll simply never get ahead and build actual wealth.
lol… you are 100% correct. The ones who aren’t doing the right thing things (like many people I know) do not want to be told to live beneath their means and thus avoid watching videos on how to manage one’s finances. They want to live the high life and spend all their income instead of saving and investing some of it.
At 56 we downsized our big 6 bed/4 bath home for a one level smaller home. Hubby fought me on this because he liked the status of the big house but with the kids gone….nope. We are both happy beyond words to have a house that’s paid off. Retired a year later because of this. We live near “normal” people instead of snobs like the old neighborhood! We are truly living the dream.
Problem nowadays in many areas its hard to downsize homes as most have been building McMansions for so long that's all that is available. You either have to buy a very old home that likely needs a lot of work and has old windows and poor insulation, or try to find a lot to build on, and hope you can find an honest contractor/builder.
I’ve only learned one financial lesson, that was in childhood from Dickens Great Expectations Mr Micawber “Income 20-shillings a year, outgoings 21-shillings a year, misery. Income 20-shillings a year, outgoings 19-shillings a year, happiness”
Thank you! I cannot understand why I see so many UA-cam shows about how to “look expensive.” I understand wanting to look nice, or look elegant, but looking “expensive” sounds like a negative to me.
I can not give them folks all that money for a new car when I have a title to my 2001 Volvo 😂👍🏽 Shawdy my S paid for in full I’m ok paying for repairs my repairs cheaper than a monthly new car note 😂👏🏾👏🏾✌🏽❤️
I bought my '03 Pilot in 2005 and drove it til the end of last year when the rear frame rusted out. People always kept saying "Why don't you get a new car?" It got me where I was going and it was long paid for!
You ignore them. Just noise! Live how you want to live not how to be afraid to be seen. I don’t give a damn what they think and in retirement I will still drive a new Porsche! It gives me pleasure and satisfaction and the feel good factor is amazing
We’ve lived beneath our means our entire life. As I get closer to retirement I’m going to enjoy the fruits just a bit. I don’t care what my neighbors think.
Good for you! I also have lived below my means most of my life. I've saved enough to be able to enjoy some nicer things, but find it difficult sometimes to justify spending the money. Old ways die hard...
When I turned 50, I realized that we did not really enjoy life as much as we could have. I switched to working 3 days a week and started spending more time with family. I want to travel and splurge a little now that we have a decent cushion. Most of my friends retired at 50 with $5-10 million. I am a little behind them and will have to work until age 60.
The wealthiest person is not the one that has the most. Its the one who needs the least. A 20% sale is still 80% on and may not really be on sale at all. Self control is a great wealth builder.
'Buy straw hats in winter' I try to buy offseason and pick up the best quality I can for the cheapest prices. That way my clothes last and they are functional.
There is no need to look poor. Wearing clean cloths, driving affordable, clean, and well maintained cars, and so on does not look poor. It is not flaunting wealth but it is not poor. Live comfortably and within your means and you will win the game.
Agree. I think looking poor is going overboard . you can still look decent and nice without necessarily flaunting significant wealth. There's poor people that still look decent and clean. Saying Look poor is a bit overdramatic
He didn’t mean looking poor in the literal sense, come on🤦🏾, he meant exactly what you said, I’m sure he and others who say it’s important to look *Poor*, don’t mean for anyone to let their hygiene, don’t groom themselves and not maintain their cars etc, they’re just saying live below your means, don’t be too flashy and spend unnecessarily on useless materialism.
@@squirrelcovers6340 no one said that it did. But just because u have means its a little silly to pretend u r poor to fit in. Thats so middle school. Yes you may not want to flaunt it. Yes I understand that. Average might be a better word.
Hi Kevin, i think another HUGE advantage of "looking poor" is that the people that stick to you do so because of you, and not because of some financial benefit they may obtain from it.
I just live exactly the same as when I was working, not better not worse. Give myself the same monthly pay. Finished at 55 and now 57 and love not working and no 5am alarm 🤩🤩
Answers to doing lawn and other work: Cutting the grass is good exercise and I can think about things without interruption. I spent my whole career behind a desk. I found out that I really enjoy working with my hands. When I do it myself, it gets done the way that I want. I have time now to try new things. Physical work during the day helps me sleep at night. ....
I love detailing our cars- getting quite good at it. Big reward, sun, fresh air, use cheap wireless headphones for tunes while I clean the cars, mow the lawn. Ordinary average guy.. joe walsh etc! 👊🏻
Sitting here in a small house, watching on a secondhand iPad, with a self-maintained 18yr old car, 36yr old washing machine, 44yr old fridge, in cheap & worn supermarket clothing, and doing all my own house maintenance, I couldn't agree more. No amount of swopping perfectly good old goods for new, or having services done by others that you can do yourself, are going to make you happy.
@@Benzknees the most impressive thing is the 44-yo refrigerator. Good luck with any fridge built today lasting that long. Planned obsolescence so you’ll buy an IoT refrigerator. Who needs that?
I learned by watching neighbors. Woman who mowed her own lawn stayed strong & fit into her 90s. Decided I wanted to be like her. 40 years later, I am DIY & strong.
This suggestion is not to challenge what you're doing but to improve the quality of your life. Having old 2nd -hand IPad, 18-yr old car, 36-yr old washing machine, n 44-yr old fridge are not cost effective savings. Why? The old I-Pad cannot run the latest software, apps or programs that can improve and save you time. The 18-yr old car most likely consume more gas, not gas efficient, give less mileage, give less protection in the event of accident, and likely harder to get spare parts for maintenance. The 36-yr washing machine likely consumed more water, takes longer to wash, less cleaner, and noisy. And, the 44-yr fridge likely consume more electric, noisy, less efficient, parts may not be available if it broke dwn. The common theme is all these are electronic gadgets. Today's technology are very advanced, cheap, efficient, safe n convenient, especially from China. Therefore, my suggestion is to replace them cheaply with Chinese made products bcos you get a more effective, efficient, faster, better features, cost saving, time saving, safe products, and the latest innovative technology which will improve the quality of your life. Example, the cheap Chinese tablet will allow you to use 5G internet (faster), use latest apps to get your work done, online global shipping at cheap prices, consume less time, power, and use digital pymts. Unfortunately, many Chinese cars are blocked by many western countries, thus domestic consumers suffered bcos politicians protect big business, not consumers. But the old washing machine can be replaced with cheap Chinese washing machines - energy efficient, cleaner, clean faster, use less water, many features, etc. Likewise, the old fridge can be replaced with cheap Chinese made product. Chinese technologies have vastly improved over the last decade. They are not junk products anymore. Did you know that China is now the world largest cars exporter beating the combined export of Japan, US and Europe. You pay at a fraction of a cost to improve your lifestyle. The emphasis is replace worn out parts for maintenance, not repairs. Why? So that the latest efficient technologies can be used to improve your qualify of life.
@@HeresMyView show us a new washer that will last even 10 years! (Low water washing ruins fabrics) Around here water is still inexpensive and many of us have our own wells. My brother’s vintage truck doesn’t need gas station gasoline & with a solid iron frame that will plow right through new vehicles. Only issue with old iPads is designed obsolescence, the batteries, like just about everything else today. Sounds like you were born post 70’s person unaware of old time solid analog made in the USA stuff?
Nearly 69, spouse is 73, married 35 years - we have always done our own yard in a neighborhood where everyone else has a lawn service!! I even painted my own house - that probably surprised some of the neighbors! I've lived beneath my means most of my life - we haven't made huge salaries but we are financially stable and happy -at our age good health is the true wealth.
You sound like my Dad! He never hires anyone for a job he can do. He mows the lawn, painted the house, and even replaced his own roof! I admire him so much for this.
Before I retired I joked with a fellow worker about who had the worst car in the parking lot. We would kick the back of each other's car to see which rained the most rust and then laughed. We each knew the other was very well to do. Such a good feeling.
@@globalfamily8172 It’s like the delight of getting something for free. You have this cheap old car that just keeps running and cost you basically nothing. So you know all the cash that you’re colleagues and neighbors are spending on vehicles is going to other things you enjoy in life (including the peace of mind of saving). It’s literally very similar to the feeling of getting things for free. It’s also the delight of _being_ free - free from debt, free from the obligation to keep up with the Joneses
We went in between. We retired from living and working in Hawaii to living in Ohio in a modest home that belonged to my in-laws. Our yard is very nice and well landscaped. We use a yard service because we travel so much and don’t have lawn sprinklers - remember it’s an old house and neighborhood. We wear comfortable clothing. We drive a five year old Lincoln suv hybrid for the gas mileage. We stay at budget hotels that have a kitchen for the savings from cooking our own food. The biggest rule we have is no debt. We saved and invested all through our working lives to generate a cash flow that pays us the same income in retirement we made while working.
Your comment is the only one that I've read here that I agree with. Live within your means, enjoy life without over indulgence. But I did not work hard and save 38 years to drive a 20 year old car that stays in the repair shop, never eat out or travel, unless that's just how someone likes thier life. For me, its not to 'over' indulge, but by all means to indulge.
Money buys time. Time means freedom. Time is the biggest luxury. I think you forgot an important aspect of looking poor: safety. I know people who own a luxurious villa in a wealthy neighbourhood, but they fear for their safety every minute of the day. They can't enjoy their wealth. They're addicted to sleeping pills. They're afraid to open the door. They're afraid to go on holiday and leave their property behind.
I've never had this dopamine shot from buying something. I wear my clothes until they fall apart. My car will be 18 years old in one months. The joy from owning my old car and my caravan has become constant. It's not spectacular, but gives me a constant level of joy. Yes, I live a simpler life than I could and I enjoy my financial freedom. I may not look really poor, but definitely not rich. I even ride a bicycle about as old as I am. I got it for free about 40 years ago, because someone thought it wasn't good any more. It's still quite good enough for me.
I have top drawer shirts and bottom drawer shirts. The top drawer shirts are for going out when I want to look halfway decent, but not in any way flashy. Bottom drawer is for when I'm working around the house.👍
The first moments of this video made me chuckle. This is my parents 100%. They are 78 and 83. Their net worth has never stopped going up even after they both retired. My Dad's drives a 20 year old VW Passat and has no interest in replacing it despite having loads of money. Their biggest financial problem is RMDs...
Required minimum distribution - money that MUST be withdrawn from their retirement accounts. People not needing money hate to do this because they are forced to pay taxes on it.
@@globalfamily8172The point is they have complete financial freedom. Not to mention money available for expensive long-term care should that become an issue, and for many of us it will.
When i was a young guy just starting out i worked with an older employee who seemed to have done well for himself over the years. It was a union shop so we made the same salary. I wondered why was it i couldnt seem to get ahead. Ill never forget his response. " It doesn't matter how much you earn, it only matters how much you save". 😊
I haven’t bought new clothes in years. There’s an independent thrift shop I go to that sells nice used clothing for $5 with a 20% discount. Whenever I need another shirt, pants or jacket I just go there and always able to find what I need
I'm 26 years into retirement, thanks to careful planning and careful spending. I live in a relatively large house that is cheap to run, (no mortgage), have enough in an instant account to buy a new car for cash (if I want) and save around £400 a month. I run a 20 month old EV, very cost effective in the UK, and regularly use restaurants to eat out. Some of my clothes are very old but always clean and tidy, My coats were expensive to buy but last many years. My lifestyle comes from never buying unless I can pay in full, my credit card has never been in arrears, Paying into a first class pension, never burning money by smoking and not borrowing to buy. I don't look poor , I look self assured and always get good service when out and about. I live well.
A friend here in the UK was a mortgage adviser. She would have some man walk in having parked a shabby van and discuss should they buy a house outright or would it be sensible to take a mortgage of some kind. Next wpuld be someone in a brand new big car and they would be looking to re mortgage. Sometimes for the second time
I am currently on vacation in the Canadian Rockies and just retired at 62. Live in Dallas Texas, I have a used car and a small Codo that I paid in full in cash. Most of net worth in stocks and bonds that throw off lots of cash. Complete freedom! Loving life.
at work I was mocked for my frugality - making my own coffee, saving money, driving an old used car. Then I retired with enough nearly 8 years ago, and those who mocked me are still working at around 70yo since they couldn't afford to retire !
Being broke in my twenties taught me how to be frugal. Grew up middle class and got a small inheritance that I wasted due to a crazy husband and men who stole from me. I keep my money to myself now.
I agree 100%. I especially agree with the comment about the difficulty of walking back spending habits. I do cringe at the expression of "looking poor". I can have a modest wardrobe of good clothes and "look sharp". I can buy an older car that "looks presentable". A modest home can feel warm and inviting. Perhaps the word we are looking for is looking "content." Open to suggestions.
First Timothy chapter 6 verses 6 to 9 in the Bible reads ... 6#But godliness with contentment is great gain, 7#for we brought nothing into the world, and we cannot take anything out of the world. 8#But if we have food and clothing, with these we will be content. 9#But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.
I tend to dress in very comfy clothes while at home but going to the grocery store I dress better and church I like to wear real nice clothes. Most people have lost pride in looking their best.
I’m sure glad I did exactly what you suggested. At 70 and retired for 4 years ago. I have money, a house and peace of mind. I never made a lot of money, enjoyed my life and was frugal. No debt and no worry.
Yes!!! Your entire message is the subject of a book I devoured as a young man in the 1990s entitled “The Millionaire Next Door.” It was one of the few books that changed my life. I believe it was Sam Walton quoted in that book who said he is a firm believer in “shopping in stores with concrete floors.” Though a bit dated, it’s still a great read. When it comes to buying lots of stuff, there is another book that has changed my life whose message is “If it ain’t eternal, it’s eternally obsolete.” Today, I feel I am wealthy in every way imaginable and in every way that matters. Thanks for the great message, Kevin!
That book and it's follow-up The Millionaire Mind, which is just as good with teaching sound money management and lifestyle choices, quickly put me on the right path at a critical time about mid-way in my earning career. Both of these books should be utilized in high school curriculum as required courses for career and household management studies to get the young people off on the right footing as they start their adult lives.
I totally agree with you. When I drove a new BMW , bought like crazy, and lived in a million dollar house, I was not near as content as I am now, driving a ten year old Prius, no consumer debt, and a house worth less than half of my old house. I do not desire the same things anymore, since they are all empty promises and they just don’t deliver.
You just described me and my husband in your first sentence. We started out poor. We lived within our means even though friends said we should use credit cards! We own our small house and used cars. My husband makes much more money, but we live the same way. We have a very nice savings and I really can't believe we are doing so well! I can't think of anything I want to buy that costs over $1000!
My in-laws had a neighbor worth 600 million. No, he didn’t go around telling people that, it was just commmon knowledge how much he’d sold his program for. This was in the 90s, and he was still driving around in a VW van from the mid 70s. And it looked like it! I think it helped the neighborhood see him as still the same guy.
I whole heartedly thank all those people constantly running on that proverbial treadmill. Without them, no debt would be created, our economy would stagnate, and my investments would become worthless.
Looking poor is subjective. Just like other non- specific words. I live comfortably, with nothing worn out, stained or ripped but not fancy, designers or bigger then need. I like it like that. A long lasting quality value item, place,... that I like. Not a "o-o-o, look at that!" to please or impress someone else. I agree, there is something freeing about knowing you could buy it, but don't because you don't need it. I grew up a long time ago. What I have does everything I need, just fine. If I want to buy something else I can.
Another plus to looking poor is when you get estimates for repairs on your home, they don't automatically jack up the price even higher than usual because you look like you can afford it.
The only caveat I would say ... if you buy a new car embrace it , take care of it so it gives you longevity and reliability for many years to come. I bought a brand new prious in 2011 and I still love it . I plan on keeping it until it no longer serves me.
Yes,and although people say “don’t get the extended warranty”, I always do. It has always paid me back at least three times over. It’s always been an investment. And well worth it.
Me too. Class of 82? I’ll be 60 at the end of the yr. Most friends are still working…suckers. Time is WAY more important than money. I drive a 2016 Nissan pickup, wife has a 2011 Toyota. We could drive Bentleys, but choose not to because that’s just dumb. Good luck on your journey. This video is priceless. Thx
My coworkers all ribbed me for driving a 20 year old Honda civic. They understood why when I walked in at 51 and left to retire early and travel the world full time, forever. They all understood the lesson pretty quickly that day.
I don't have lifestyle creep. Yes i have to up grade things occasionally because things fail over time. But I don't buy things that may give me momentary joy, by that i mean for example if I buy gadget, I fully expect to use the gadget for years. Only exception really is I have bought tools that were only used once and I could not borrow. However the purchase saved me the cost of paying someone else to do a job I was capible of doing for way less than paying someone. So even only used once it saved money and I have it for a similer future repair.
Best advice when I was young: If you can't pay for a car in two years, you can't afford it. Buying near 100k miles & selling about 250k miles has saved a lot over the years. Also buy/sell person-to-person to avoid dealer markup.
I agree, but have never sold a car in my life. When I finish with them they are being towed away by the charity (Cars for Veterans usually) that I donated it to! If it runs I am still driving it!
I've always bought new vehicles and made out okay. With new I avoid sitting in someone else's grime and I potentially avoid taking over someone else's problem vehicle. You just need to not buy more vehicle than you need, stick to reasonably priced vehicles, keep the cost of maintenance and insurance in mind, and take care of your vehicle so that you don't have to replace it often. And, unfortunately today, you really need to be skilled at shopping at a dealership - because they will rob unprepared customers blind. You are looking for transportation, not a soul mate. Get to know the vehicles you might buy ahead of time. Only consider vehicles that are not in short supply at a dealer. Stick to one transaction per day if you can - just buying the car for cash. You can sell a current car later. You can arrange to borrow money ahead of time if needed. Take no dealer addons. No service contracts. No extended warranties. Take your time - my last salesperson kept lowing the price when all I was doing was reviewing my notes of different vehicles that I was considering. Don't accept pressure - head to the door whenever you want. Don't sign anything that isn't a standard government form unless it is printed out and you have read it completely - it protects you and gives you a good reason to nix the finance office products. Each person at the dealer practices selling vehicles perhaps 250 days every year, so you have to shift the purchase process out of their expert hands and into yours.
Ours is the three year rule for buying a car. It was also great when the three year loans had zero interest. I miss those days! The best of both worlds! I would keep our cars even longer, but I have to fight my husband all the time! He loves getting new cars.
I’m a walking contradiction. Transportation and comfy clothes are really important to me. I make jokes about my clothes with “Do I look like a fashionista?”. But, buy pickups brand new and drive till no longer making sense to fix them. In the past, vehicles lasted over a decade but in recent years had a few changes of heart and one unexpected accident (his fault, no harm to my body or insurance rate) have me looking like I change vehicles on a whim. The point is I spend on what’s important to ME, not others. I’ve never been one to consider what the Joneses think. It’s served me well as now I’m retired and able to do what I want, when I want without worrying about needing a paid position. Life in retirement has been awesome!
I've never had a lot of money. But when friends who had been with my last f/t employer since school, were talking of looking forward to their retirement years, I bailed. Sold my little house, bought a 14 acre pasture in the wilds and planted woodland. Now 20 years later I've kept going with small p/t jobs, but now have free heating & cooking fuel, wild swimming and spring water, and people pay me to have breaks on my land. And I'm enjoying my solitude as I turn away women who are trying to move in with me....life's too good to throw my peace away.
You had me until you mentioned women… gotta wonder why. Why even mention that? Odd, that. It makes me think that secretly, you wish you had a woman. Otherwise, why even mention it?
I bought a couple of guitars and a good quality amp just before I retired. I’ve been playing guitar on and off since I was a teenager. I worked full time for the best part of 50 years. I managed to pay off the mortgage and save a reasonable amount of money. I have a good pension. I consider myself lucky to be financially comfortable. I rarely splashed out money on fancy goods over the years. Any big purchases were thought out beforehand, and I always purchased quality stuff. I just wasn’t interested in fancy cars, designer goods etc…I now play for pleasure in bars and social events. I’ve met a good group of people and enjoy their company. Best purchase I’ve ever made.
Bought a Porsche 911, two years before I retire. A life of working hard for everyone else and doing little for myself. Thoroughly enjoying it. Time is running out. What’s the point of dying with loads of money? A few little luxuries make life far more enjoyable.
This is very good advice. When I was working I seemed to be driven by status but since retiring I paid off the mortgage, my wife and I downsized our house, kept kept our car and iPhones and cleared the overdraft. We still cook and eat good food made with natural ingredients, we love our garden and maintain it ourselves and we dress fairly smartly when visiting the theatre and taking breaks whenever we feel like it. It’s very liberating.
Congratulations! We do this as well! We have a wonderful life! If I wanted to buy a nice outfit, I would. We have the things we want and like. It’s soooo fabulous! Walks in the woods (we pack a picnic and eat it at the picnic shelter), evening walks to see the stars (it’s quiet and lovely and we don’t have to get up at 5:30 am anymore so we can stay out late), weekday trips to the museums, sitting in a coffee shop to chat, taking weekday trips to do middle of the week hotel stays (cheaper) to visit other parts of our state. Visits to friends and can take our time… it’s all wonderful!
“Freedom from dissatisfaction“… I was very pleasantly surprised to see this as your first point! I often think of a quote which probably originated with a glamorous woman of the mid 20th century… “In first class you have luxury, in third class you have fun, in second class you have neither.” When I feel attracted to a luxury item, I remember all the times I paid a lot for something first class that did not live up to the sacrifice I feel I made for it. Yet I’m seldom disappointed with a third class bargain item or experience… they are sometimes free and otherwise usually worth many times what I gave for them. Dopamine generators!
I live a middle class retirement but my bank account is upper middle class. I’ve taught my daughter this way of life, live comfortably, safely, but shun designers and luxury brands. I learned this from my dad, who admired Buffet.
I have always lived below my means, so I know that you are 100% correct. I am now pushing 70 and have a comfortable retirement, no financial worries. Sadly, my sister and her husband only care about showing off. They are of course not well off at all. I manage a small trust that my mother left my sister. My sister wants to take five thousand a month out of the trust upon retiring soon. That would drain the trust in a handful of years. I suggested that she take perhaps three thousand a month so that there would be a good cushion for if she and her husband needed special health care or so the trust would last ten or more years. She became crazy mad. I understand. Without showing off her life is meaningless. She would rather die, she thinks. I have tried telling her that people would like her more if she was not showing off, but she cannot understand that. I hope many people see your video and take it to heart. I doubt it, but a few will.
@@elizabethrufener7280 I would love to do just that, but as trustee I am obligated to protect her. Also, if she ran the trust dry to purchase some show off car or jewelry, it's me who will have to support her and her husband. haha. They have social security, but they love to purchase expensive clothes. On the other hand, I might follow your advice. Thanks.
You have just described my husband and me. We look dirt poor but we are financially very independent. We can do what we want We enjoy buying our needs at good prices. We are happy and content. We don’t want to leave loads of money to relatives, that is not the reason for our way of life. We just like getting our needs at a good economic price. Rebecca x
My wife and I have always lived as you promote, nobody know that we are as financially secure as we are. We don’t drive expensive cars, however we do own a hangar full of expensive aircraft and motorcycles that were paid for when purchased, as is the one modest home we live in. We have only purchased a single new car in forty years of marriage. We sold our second home after realizing it was a wasteful excess that other people used more often than we did. At 67 I still work because my job is so interesting and lucrative, but I haven’t needed to work for many years now.
Because my husband and I have been careful with our spending, we have enough resources to move from our area to a more expensive town to be closer to our children and grandchildren . I'm glad that our choices mean we won't be a financial burden to our children. I am seeing more situations where parents are having to ask for financial help from their children just to pay the rent and buy food.
My hack is to simply consume investments - I can then stay on the hedonic treadmill by getting my dopamine fix every time I put some ETFs or stocks, or buy some more retirement savings ;) After buying a shiny new stock or some mutual fund units I soon feel dissatisfied and want to buy a few more... my hobby is to collect NW.
I retired at the ripe age of 59 with house and cars fully paid and a large enough account not to worry about enjoying my retirement. I owe it all to one coworker that taught me early in my career to pay myself first before paying anyone else, and that included maxing my 401K contributions and personal IRA. I also never had to worry about creating a budget, but I never bought anything I couldn't afford to payoff by the end of the month and never had to worry about savings, since may savings contributions were automated and were beyond my reach. Obviously, I wouldn't have been able to succeed as well, without a spouse that thought the same way and some luck.
Great video. I strive to live below my means. It still amazes me to see friends and acquaintances who live high (eating out several times a weeks at mid and high-end restaurants, taking frequent vacations, attending expensive concerts etc.). Inevitably, when an illness or a death occurs, there is a "go fund me" to pay the expenses. I could not enjoy an expensive meal knowing I did not have adequate health insurance or the ability to cover funeral costs. I am still employed, but I have no major debt, except monthly expenses. I never charge more than I am able to pay off the next month. Yes, I would love to eat out every night, but an occasional splurge is more rewarding, both emotionally and financially.
It depends on what you mean by "looking poor". No one should look homeless or unkept. However, one can look modest, clean, well-groomed, and healthy while living below one's means. If you're doing it right, no normal person will know what your income level is just by looking at you.
Great video! A lot of food for thought. I liked also the point you made that, if you just pile up your home with clutter, not only you won’t enjoy it but also your family left behind will have to clean it up and get rid of it after you pass.
Guess what? It might be even worse than that. I had to clean out a loved one’s mess, and he was not dead. Rather, he was incapacitated in a facility, and desperate for my companionship every weekend. I had to do the entire job myself in order to protect his privacy and dignity. This took my precious time away from him, as well as my grandma, who was in her 90s, lived only two blocks away from his home, and was failing. People, clean up your home NOW. Who knows, the person who suffers the most due to your mess just might be you.
We built our own house. No loans. So it has taken us 10 years to build, but it sure beats a 30 year mortgage with all that interest just given to the banks. We drive 2 older cars. My washer and dryer are both 26 years old. Rarely use the dryer as I like the smell of my clothes hanging on the line outside. All our clothes are older. I love yard sales and thrift stores but only what we need.
Living beyond your income is way to easy, but sooner or later it catches up with you, your credit cards are maxed out, and then the debt collectors start to make your life a misery. Yes that was me 10 years ago, and i still have 3 more years before i will be debt free. Living on a very tight budget is no fun, but at lesat it learns you how to make every penny count. The best advice i was given came from a debt collector of all people, they said the only way is to stop buying items that you don't need, that way you won't suffer buyers remorse and spend many years trying to pay it all back.
Stick with it, Barbara. You will make it. It is such a wonderful feeling to be debt free, not worrying about which bills to pay and avoiding answering dunning calls. Been there, done that. It's amazing how much more money you have when you are not servicing debt.
I have some goals - traveling, good medical care and buying a certain car I like, but I buy the demo and it's not the most expensive car I could afford. I will also hold it until it starts needing repairs. At some point you have to spend because when you hit your 60s, it won't matter how big your nest egg is when you go into a nursing home. I know people who died with millions in the bank but denied themselves modern plumbing! I live in a wealthy neighborhood, but we mow our own lawn, I trim the hedges, we do our own interior painting and I make the slipcovers (we don't use interior decorators). It doesn't bother me at all. I also shop at TJMaxx when our neighbors go to Nordstrom.
It's a fine line. In our materialistic world, books are judged by their covers and if people underestimate who you are, you may be treated rudely and miss some opportunities, especially in the case of older women who tend to become invisible. You need a thick skin, be assertive or at least be quite a sharp dresser to deal with that!
As a 50+ woman I agree. You need to present well but that does not mean expensive designer clothes. I know so many women who waste money on luxury brands. I look great wearing clothes I get a Macy’s on sale.
Not sure where you go and socialize, but none of my friends would ever ever judge by those standards. I am never treated rudely because of the way I dress, and I dress pretty casually. I find that it’s really about my personality. I try to be friendly. I try to ask about others, and then listen. I actually have made so many friends this way that i have a difficult time fitting them all into my social calendar. If anyone ever were to be rude about my appearance, I would simply never speak to them again.
Your body should never be a free advertising platform for status-seeking businesses. The clothing and accessories I wear has no obvious trademark symbols showing.
Have to admit I didn’t have John Wesley on my retirement planning bingo card 😅 I’m the son of a British Methodist minister so Wesley was a name I heard a LOT as a child and the values described in this video were instilled in me from a very early age which probably explains the 2008 car in the driveway.
I'm looking to replace my '05 with something about 15 years newer. But it has to break first. And I will pay cash for it. But I don't care about how I look- rich or poor. And clean out your garage so you don't have to park in the driveway!
I realized years ago that those people who used to look down on me because I didn't wear the latest Nike sportswear, weren't worth knowing. The truth was I couldn't be bothered to. I thought clothes were to keep you warm, not to flash off to the world that you follow whatever trend the advertizers pump at you! And they used to moan all the time that they couldn't come out for a meal because they'd run out of money. They think they'll only get approval from those who behave like themselves (the ones they want to know) if they wear the latest clothes, or have the latest phone. It's ridiculous. The key point here is the need for approval. Not from anybody, but from the people who also follow fashion. They need to disregard fashion advertizers and then they'll be happy.
When we were younger and still struggling, my wife and I paid off our 30 year mortgage in 12 years by paying extra each month on the principal. We had 5 children and the majority of our clothing was nice and acquired from Thrift shops. We are near retirement and have never owned a new vehicle. Instead, we do research and purchase a good used vehicle such as a Toyota or Honda that has about 5 years on it and drive it until the wheels fall off. We are also happy to delay retirement a bit to maximize SS. When we retire in 5 years, we are going to travel and enjoy the fruits of delaying gratification. And our children will receive the balance from our estate when we are gone.
My advice is to RETIRE now while you are both young enough to enjoy travel. Never mind maximizing your SS. The payout will catch up if you have longevity, and if you don’t at least you have Paris. I should know, shit happens.
@@sct4040 I have to laugh when well meaning, but uninformed people, offer advice online without knowing all the details. For instance, would you know that 2 of our children were born very late in our lives and are now in college. As good parents, we are helping them with this education cost and they are still dependents so we also need to cover food, medical, and living expenses. Also, since I have to work to manage these expenses, any SS that I could get paid would disappear because of the earnings criteria since neither my wife nor I are at full retirement age. Thank you, but I have considered what options are at hand and believe we have made the correct choice. We are in good health and our families are blessed with no incidences of cancer and longevity. Yes, anything can happen at any time, but the odds are in our favor.
@@sct4040 I have to laugh when well intentioned, but uninformed, viewers toss out easy advice without knowing all the details. For instance, would you know that 2 of our children were born very late with the last one born in our 40's? These two children are now in college, and as loving and helpful parents, we are assisting them with the cost of this education, plus medical, food, and other living expenses. Since neither my wife nor I are at full retirement age, any earned income will mean the the SS income test will remove the bulk of what we could theoretically draw.... thus no advantage to SS at this time. Both of us have no incidences of cancer in our families or extended families and we are both blessed with longevity as we consider the lifespan of our grandparents and parents. Yes, delaying retirement offers some risk, but we have considered our options and are happy with the choice that we have made.
@@appleman59 We felt that way too. Until our son died by suicide. I view life differently now. Everything is a risk. You feel your life is managed through limited risk. I’m sure it is. But I say, also heed the words of sct4040. He’s just saying, consider what the gift of time could be.
Our Monthly Expenses: 1k. $85 Property tax, $15 UA-cam, Donation $140, Insurance/Towing/Tags/Tires-$130, Power $100, Hair/Grooming/Clothes $100, Eat Out $60, Pets $70, Misc- $175, Groceries $100. Our total Income is $1710 per month. 10K emergency cash & 85K IRA. Bought a fixer upper cabin on 9 acres, our DIY remodel looks great. Drive a 2020 E-Car but our driveway is dirt so we look poor
@@UTP504 Thank you, we're going much of our food, volunteering for 4 free organic meals per week, church potluck, etc. Just getting creative to cover food, it's otherwise our #1 expense.
$100 a month for food? For 2 people? I dont understand?How may free meals do you get a month by volunteering? Potluck means u have to bring something, too. Where do u live
A way to get yourself off the hedonic treadmill: when you think you want something, do all the shopping and research to find the best model, price etc. Decide to buy that one IN A MONTH or so. When the deferment period ends you usually find that you no longer really “need” it. If you still really want it, go ahead, buy it.
Very Informative. I was taught this by my parents at a very young age. I saved more money and didn’t really miss out. Today, this poor lifestyle, built wealth and financial freedom. I retired at age 45, today I’m 55 and really enjoying life. I have no debt, have accumulated considerable wealth to spend going forward.
I don’t think he was talking about that. You buy a nice car because you enjoy it - probably every day. That’s much different than someone else who experiences only momentary pleasure from a new car purchase. A very expensive way to feel good for a week or a month. It’s all about examining what ACTUALLY gives you pleasure. What actually contributes to your feeling of well being. And if you can afford it, then go ahead! His point was: don’t buy things just to buy them. Don’t buy things for that temporary surge of pleasure. Learn about yourself so that you know the difference. And then enjoy what you love, but you don’t really need the rest. However, if you “enjoying your life” means that you never put money aside, then you also cannot reasonably complain when you retire that “you have no money”. It’s always, of course, your choice. I can tell you that now that we are retired, we are very happy to have the money to do the things that give us pleasure. Money is the least of our concerns. And that is very liberating. By the way, our two year old car was paid for in cash. Just went in and wrote a check.
@@deekang6244 Excellent! Totally agree. And if you have little money, retire anyway and enjoy painting, writing, visiting friends or whatever brings you joy.
Peace of mind is more precious then all the consumer crap/cars/houses and designer junk Dont need any of that stuff Free time and bright future is what it is all about
In my town, there’s a lot of very rich farmers. But she wouldn’t necessarily know it. They’re driving an old beat up pick up trucks, wearing worn out overalls, and have enough cash in their pocket to buy a brand new car. It’s quiet money.
I've never found happiness in impressing others. I also never found happiness in extravagance. I don't really care much what others think of me (well, other than not thinking I'm immoral or criminal). I've done well financially because I'm frugal (but don't deny myself quality things that have meaning for me) and learned how to manage my assets and to invest safely (I've never paid a cent in credit card interest). In the end all those you chose to try to impress don't care about you and won't contribute anything to your life so why spend all that money just to impress them ? People who only want to know you because you seem to have a lot of money are people you should avoid.
One more benefit of "pretending poor" is that it is easier to raise good children. When my 2 sons graduated from colleges and they realised that we were not poor but, on the contrary, quite rich, owing 3 houses in Silicon Valley. But, their life styles were already built in. They were never given presents unless they achieved some goals. They love to save and invest money. At age of 30, both of them are millionaires already by being smart in managing money. Another benefit is the enjoyment of purchasing. We spent a lot of time to decide what we want to purchase. The searching, discussing, analysing prolongs the joy of purchasing. We always return wrong purchases. We only buy what we like and continue to enjoy. By making purchasing hard, it is far more enjoyable because it is a sport for us.
Don't wait until you are "preparing for retirement," unless you are taking the long view, and you are "preparing for retirement" starting at age 16. That's the smart move. For the past 20 years, I have driven cars that are at least 10 years old. My business truck is 14 years old...195,000 miles and still going strong. My suit is 12 years old. I unsubscribed from cable TV. I don't eat out. I buy food on sale and I have a 15 year old manual defrost deep freeze and a 30 year old refrigerator. My house is paid for. I pay off all my cards every month. I pay out no interest. When my church has a mission trip, I pay for a portion of someone else who doesn't have all the money to go. When my employer closed in January, I bought that old truck from him and started my own company. I make almost four times what I made as an employee, and I have more personal time... like right now...and it's before 1:30 pm on a Wednesday. I am preparing to write a class for our Christian school about money. DO NOT wait until the last minute to get ready to be "old." Delay your gratification. I submit that if your special someone likes a lot of new stuff all the time, you should find a better someone. I'm not kidding. Marry someone who is also wise about money, or it will tear you both apart. I am truly blessed, and one thing that helped me was not taking the bait of advertising, which encourages you to buy, buy, buy. I also stay away from most social media, like face, tok, pin, and x. Keep other people out of your head, and make room in your heart for God. I wish someone had told me this when I was 20, but I got smart at 43, and it was not too late. Start sooner, and have fun.
Years ago I ran into an Oscar winning actor buying cases of Shasta soda at the 99 cents store. He got into his 1970 era station wagon. This was in the early 2000's.
Here in the Netherlands we use often the proverb "Act normal". If you show off your shiny new car or talk about the money you have, your are considered a idiot. Nobody here cares about your job, the size of your house, your education or the amount of money you make. On average the richest people in this country are the senior citizens that saved a lot of money during their lifetime and now retire without financial problems.
In the Netherlands no one cares about what others make or have because everyone is pretty much equally “low income” due to the horrendous taxes and fees that everyone has to pay. Unlike in a few other countries where people pay much less taxes and have an easier time accumulating wealth. In the Netherlands basic necessities like medical service are “free” so people don’t stress out about trying to get ahead in life and are more content with what they have - thus don’t care what others have.
I have always admired Dutch common sense practicality and their no nonsense, simple approach to life. We could use that mindset in North America in a lot of areas. Would solve a lot of problems.
Both my wife and myself came to the US from a different country, with no money and got a late start with our professional careers (both of u are engineers). We were always savers and had modest cars and we were not big spenders on clothing or eating out. If we had car problems or house maintenance issues, we went to UA-cam to find repair solutions and did as much as possible ourselves. We are now in our early sixties and have way more money than we need for retirement. We are still working because we enjoy what we do. Right now, we are looking into online part-time work, so we work/travel internationally.
My "relatives" .......actually have the skills and resources to keep track of my bank account(s).....etc. Family never gave me $$.......but they want $$. Who would believe?
I've got this down! 10 year old Honda Fit that I bought new right before I retired, 12 shirts, 3 pants, 2 hoodies, a jacket, one pair of shoes and a coat, no real estate, minimal stuff. By choice. If I suddenly got the urge to get my clothes at Neiman Marcus, live in a gated community, and drive a Tesla Cybertruck, it's comforting to know that I could. I guess. But I like my freedom.
For wealthy people , looking poor may work for them. For me, I find that if I dress nicely, look clean and wear a little makeup I'm treated with more respect than I would if I look poor and shabby. I also feel better about myself and act accordingly.
People point at you and say, "Oh look at that poor person, can't even afford a piece of bread, I bet." But I've come prepared, and snatch a lobster tail out of one pocket, a packet of butter from another, and a crustacean glove from my third hidden pocket. I eat my meal in the vicinity of all the prejudiced townfolk as they look on in amazement, realizing how judgemental and naive they have been. At least that's why I enjoy looking poor.
@@kelway74 Great fun! I had smug satisfaction at work when it was stressful and aggravating, because I was making more money on my investments than from my job.
Great advice. My boss can't afford a Ferrari. I can but would never do it because financial freedom is more important. And I do not need a Rolex. I am wearing a cheap Omega watch.
I have an older but great car. Now I can pay cash if I need a new used one. That’s how you avoid high interest rate I have only a small mortgage every month plus expenses food and gas.
I grew up with my Dad doing all the work on our house no matter how much money we had. I never associated it with being poor. My Dad just wouldn't hire someoen to do a job he could do. He replaced our roof by himself. He scraped all the old paint off the house and repainted it. He installed our TV antenna on the roof and even built our TV from a kit! This was in the 1970s and 1980s, but he continued doing it all his life. When I was around 6-10 we lived in a really fancy neighborhood, but I never felt like we "looked poor."
I’ve only recently upgraded to a modern car “expensive” only 4 years old, and to be honest, I appreciate how technology has improved things. But I feel more comfortable dressing in comfortable and practical rather than trendy clothes, growing, cooking and eating mostly at home, only dining out infrequently. I’m spending far below what I’m earning through investments after 16 years of retirement, although part of the reason is deferred gratification earlier in life to allow me to grow my portfolio. To be honest, I have no desire to complicate my life by increasing lifestyle items like boats etc, but I am gradually learning that it’s ok for me to buy the things I would use, for example a solid silver concerto harmonica!
At 45, I divorced my spend-o-holic spouse, I started to build my retirement. I purchased used cars (2 Toyotas). Eventually bought some land in the country (12 acres) and put a brand new single wide 3 br 2 ba mobile home on the property. Paid everything off before retiring at 59! Life is good with chickens, a garden, and my dog, Buddy! I don’t care about looking “rich.” I wear clothes from Tractor Supply and Walmart. I am the queen of my single wide trailer.😂❤ 🐶🐾
Wow! Looks like you have got it made! Do you use city water, a cistern, or did you have to build a septic system? What about electricity? Generator? What about the costs for the septic?
aww good for you
@@sundancer7381 I do have city water, but also have 500 gal of rain catchment for watering the garden. I have local EMC power and 2000 W solar generator back up with 1000 W of panels. Also a 2500 W Dual fuel (Gasoline and LP gas) generator. Septic was $3300 9 years ago. It's about $6800-$7500 for septic now.
*LOVE* this story! Good for you! I would also love to know how your former spend-o-holic spouse is doing these days. I bet his situation isn’t anywhere near as rosy.
@@annietaylorsmith3876 Appreciate the info. Looks like you thought everything out carefully. I'm at that point of wondering which way to go.........
As I've gotten older, I realize that I can't do all the house cleaning anymore. I value my limited time here on planet Earth more than I value a hoard of money in the bank. So I do have a cleaning lady, but it's not to impress anyone. It's to free me from drudgery and a sore back. I live within my means by driving a 9 year old car and paying cash for a small house in a very modest neighborhood. I don't spend money on status symbols, but I do prioritize my time and my health.
This is absolutely true. We have always lived way beneath our means. We retired at 50 and 55 from professional jobs of 25 and 30 years. We immediately started working, I as a housekeeper for independent homes and spouse for a small mom/pop retail hardware store. No one has a clue how financially free we are. We drive a simple vehicle, non name brand clothes, and live in a very small cottage in a rust belt town. We live well, eat well (at home) and sleep well. We look very poor. We are not!
I like looking poor. 1) people generally leave me alone 2) people don't argue with me (and sometimes reveal secrets). 3) I am invisible unless I want attention. Inner peace.
Just reading all these comments, I feel like the people who SHOULD be watching this video are not. And those of us that are watching, are already doing these things
Exactly! And it's heart-breaking seeing friends with good incomes who can "never get ahead." Yeah, well, there's a reason. All of us have a certain amount of money. If people spend more than that and never save -- shock, shock -- they'll simply never get ahead and build actual wealth.
lol… you are 100% correct. The ones who aren’t doing the right thing things (like many people I know) do not want to be told to live beneath their means and thus avoid watching videos on how to manage one’s finances. They want to live the high life and spend all their income instead of saving and investing some of it.
At 56 we downsized our big 6 bed/4 bath home for a one level smaller home. Hubby fought me on this because he liked the status of the big house but with the kids gone….nope. We are both happy beyond words to have a house that’s paid off. Retired a year later because of this. We live near “normal” people instead of snobs like the old neighborhood! We are truly living the dream.
Problem nowadays in many areas its hard to downsize homes as most have been building McMansions for so long that's all that is available. You either have to buy a very old home that likely needs a lot of work and has old windows and poor insulation, or try to find a lot to build on, and hope you can find an honest contractor/builder.
Congratulations! Our house is paid off.
Isn’t that a wonderful feeling???
You have something they may never have ... enough.
Well done! Very sensible ...your husband is a lucky man!
People stay rich pretending to be poor, poor people stay poor pretending to be rich. One of the best sayings ever! I pretend to be poor!
Excellent!
It should be one of the best saying, it’s from the book of Proverbs.
@@stevensheegog3942 Really? I never knew that. I thought mark twain or someone like that. Thanks
@@hannible1002 Some who are poor pretend to be rich; others who are rich pretend to be poor.
Proverbs 13:7 NLT
I love this one as well:
Those who love pleasure become poor; those who love wine and luxury will never be rich.
Proverbs 21:17 NLT
I’ve only learned one financial lesson, that was in childhood from Dickens Great Expectations Mr Micawber “Income 20-shillings a year, outgoings 21-shillings a year, misery. Income 20-shillings a year, outgoings 19-shillings a year, happiness”
Great quote….I thought the novel was David Copperfield…
@@SteveHaycock I thought Expectations was the one with Pip...
Very true!! Love to read Charles Dickens.
Pity the government does not follow this.
A lesson that never changes….ever!
Thank you! I cannot understand why I see so many UA-cam shows about how to “look expensive.” I understand wanting to look nice, or look elegant, but looking “expensive” sounds like a negative to me.
Yup. My sisters laugh at my 20 year old Honda Pilot. They know I can buy any car I want but I get to laugh when they have to work and I don’t. lol
Get a bumper stick that says, "it's paid for!".
My Honda is only 15 yrs old. No reason to let it go.
I can not give them folks all that money for a new car when I have a title to my 2001 Volvo 😂👍🏽 Shawdy my S paid for in full I’m ok paying for repairs my repairs cheaper than a monthly new car note 😂👏🏾👏🏾✌🏽❤️
@@LadyChelleish very smart. Congratulations!!
I bought my '03 Pilot in 2005 and drove it til the end of last year when the rear frame rusted out. People always kept saying "Why don't you get a new car?" It got me where I was going and it was long paid for!
100% true. The richer you look, the more family and friends want to "borrow" money from you!
Amen.
You ignore them. Just noise! Live how you want to live not how to be afraid to be seen. I don’t give a damn what they think and in retirement I will still drive a new Porsche! It gives me pleasure and satisfaction and the feel good factor is amazing
yes indeed and the more likely you are to be used too
in that case I don't want to look rich at all
there's nothing wrong with spending below ones means. it's smart.
We’ve lived beneath our means our entire life. As I get closer to retirement I’m going to enjoy the fruits just a bit. I don’t care what my neighbors think.
Sounds like a great plan.
Good for you! I also have lived below my means most of my life. I've saved enough to be able to enjoy some nicer things, but find it difficult sometimes to justify spending the money. Old ways die hard...
When I turned 50, I realized that we did not really enjoy life as much as we could have. I switched to working 3 days a week and started spending more time with family. I want to travel and splurge a little now that we have a decent cushion. Most of my friends retired at 50 with $5-10 million. I am a little behind them and will have to work until age 60.
@@mocheen4837 we have 1.5M in 401k at 50 so we have to work till 60 too, even tho we own our cars and home. Sometimes it takes a little bit longer. 🩷
@howard6433 Do t worry your kids will spend it
The wealthiest person is not the one that has the most. Its the one who needs the least. A 20% sale is still 80% on and may not really be on sale at all. Self control is a great wealth builder.
'Buy straw hats in winter' I try to buy offseason and pick up the best quality I can for the cheapest prices. That way my clothes last and they are functional.
There is no need to look poor. Wearing clean cloths, driving affordable, clean, and well maintained cars, and so on does not look poor. It is not flaunting wealth but it is not poor. Live comfortably and within your means and you will win the game.
Agree. I think looking poor is going overboard . you can still look decent and nice without necessarily flaunting significant wealth. There's poor people that still look decent and clean. Saying Look poor is a bit overdramatic
He didn’t mean looking poor in the literal sense, come on🤦🏾, he meant exactly what you said, I’m sure he and others who say it’s important to look *Poor*, don’t mean for anyone to let their hygiene, don’t groom themselves and not maintain their cars etc, they’re just saying live below your means, don’t be too flashy and spend unnecessarily on useless materialism.
I agree!
yes than dont use the word poor than. U can say average or working class. Using poor as a buzzword for clicks
@@squirrelcovers6340 no one said that it did. But just because u have means its a little silly to pretend u r poor to fit in. Thats so middle school. Yes you may not want to flaunt it. Yes I understand that. Average might be a better word.
Hi Kevin, i think another HUGE advantage of "looking poor" is that the people that stick to you do so because of you, and not because of some financial benefit they may obtain from it.
And the status race...who needs it?
I just live exactly the same as when I was working, not better not worse. Give myself the same monthly pay. Finished at 55 and now 57 and love not working and no 5am alarm 🤩🤩
Answers to doing lawn and other work:
Cutting the grass is good exercise and I can think about things without interruption.
I spent my whole career behind a desk. I found out that I really enjoy working with my hands.
When I do it myself, it gets done the way that I want.
I have time now to try new things.
Physical work during the day helps me sleep at night.
....
I love detailing our cars- getting quite good at it. Big reward, sun, fresh air, use cheap wireless headphones for tunes while I clean the cars, mow the lawn. Ordinary average guy.. joe walsh etc! 👊🏻
Sitting here in a small house, watching on a secondhand iPad, with a self-maintained 18yr old car, 36yr old washing machine, 44yr old fridge, in cheap & worn supermarket clothing, and doing all my own house maintenance, I couldn't agree more. No amount of swopping perfectly good old goods for new, or having services done by others that you can do yourself, are going to make you happy.
@@Benzknees the most impressive thing is the 44-yo refrigerator. Good luck with any fridge built today lasting that long. Planned obsolescence so you’ll buy an IoT refrigerator. Who needs that?
I learned by watching neighbors. Woman who mowed her own lawn stayed strong & fit into her 90s. Decided I wanted to be like her. 40 years later, I am DIY & strong.
This suggestion is not to challenge what you're doing but to improve the quality of your life. Having old 2nd -hand IPad, 18-yr old car, 36-yr old washing machine, n 44-yr old fridge are not cost effective savings. Why? The old I-Pad cannot run the latest software, apps or programs that can improve and save you time. The 18-yr old car most likely consume more gas, not gas efficient, give less mileage, give less protection in the event of accident, and likely harder to get spare parts for maintenance. The 36-yr washing machine likely consumed more water, takes longer to wash, less cleaner, and noisy. And, the 44-yr fridge likely consume more electric, noisy, less efficient, parts may not be available if it broke dwn. The common theme is all these are electronic gadgets. Today's technology are very advanced, cheap, efficient, safe n convenient, especially from China. Therefore, my suggestion is to replace them cheaply with Chinese made products bcos you get a more effective, efficient, faster, better features, cost saving, time saving, safe products, and the latest innovative technology which will improve the quality of your life. Example, the cheap Chinese tablet will allow you to use 5G internet (faster), use latest apps to get your work done, online global shipping at cheap prices, consume less time, power, and use digital pymts. Unfortunately, many Chinese cars are blocked by many western countries, thus domestic consumers suffered bcos politicians protect big business, not consumers. But the old washing machine can be replaced with cheap Chinese washing machines - energy efficient, cleaner, clean faster, use less water, many features, etc. Likewise, the old fridge can be replaced with cheap Chinese made product. Chinese technologies have vastly improved over the last decade. They are not junk products anymore. Did you know that China is now the world largest cars exporter beating the combined export of Japan, US and Europe. You pay at a fraction of a cost to improve your lifestyle. The emphasis is replace worn out parts for maintenance, not repairs. Why? So that the latest efficient technologies can be used to improve your qualify of life.
@@HeresMyView show us a new washer that will last even 10 years! (Low water washing ruins fabrics) Around here water is still inexpensive and many of us have our own wells. My brother’s vintage truck doesn’t need gas station gasoline & with a solid iron frame that will plow right through new vehicles. Only issue with old iPads is designed obsolescence, the batteries, like just about everything else today. Sounds like you were born post 70’s person unaware of old time solid analog made in the USA stuff?
What brand of washing machine?
Nearly 69, spouse is 73, married 35 years - we have always done our own yard in a neighborhood where everyone else has a lawn service!! I even painted my own house - that probably surprised some of the neighbors! I've lived beneath my means most of my life - we haven't made huge salaries but we are financially stable and happy -at our age good health is the true wealth.
You sound like my Dad! He never hires anyone for a job he can do. He mows the lawn, painted the house, and even replaced his own roof! I admire him so much for this.
I do my own oil change on the car. The neighbour really hates it. LOL!
@@deborahcurtis1385 😁
@@deborahcurtis1385 , that is great and saves a lot - please dispose of the old oil properly as it's a super contaminant for groundwater.
Before I retired I joked with a fellow worker about who had the worst car in the parking lot. We would kick the back of each other's car to see which rained the most rust and then laughed. We each knew the other was very well to do. Such a good feeling.
That's all very well but I prefer the comfort and safety of late model cars - having said that, my 2yr old Ford Focus isn't extravagant 😁
@@kkiwi54 My wife had the nice car. We lived only 3 miles from my job so for me driving the junker was ok. Thanks for the comment.
What was the good feeling? That you could buy one but you preferred not to?
@@globalfamily8172 It’s like the delight of getting something for free. You have this cheap old car that just keeps running and cost you basically nothing. So you know all the cash that you’re colleagues and neighbors are spending on vehicles is going to other things you enjoy in life (including the peace of mind of saving). It’s literally very similar to the feeling of getting things for free.
It’s also the delight of _being_ free - free from debt, free from the obligation to keep up with the Joneses
That’s a great story! I love visualizing the rust sprinkling down.
The more things one buys, the more money is needed to store them, transport them, insure them, and care for them. Retail therapy is a vicious cycle.
Gotta clean it out. Nasty job.
So true.
It's really hard to find stuff that feels like it's worth the money anyway
We went in between. We retired from living and working in Hawaii to living in Ohio in a modest home that belonged to my in-laws. Our yard is very nice and well landscaped. We use a yard service because we travel so much and don’t have lawn sprinklers - remember it’s an old house and neighborhood. We wear comfortable clothing. We drive a five year old Lincoln suv hybrid for the gas mileage. We stay at budget hotels that have a kitchen for the savings from cooking our own food. The biggest rule we have is no debt. We saved and invested all through our working lives to generate a cash flow that pays us the same income in retirement we made while working.
Your comment is the only one that I've read here that I agree with. Live within your means, enjoy life without over indulgence. But I did not work hard and save 38 years to drive a 20 year old car that stays in the repair shop, never eat out or travel, unless that's just how someone likes thier life. For me, its not to 'over' indulge, but by all means to indulge.
I’m millionaire but I drive a 2007 Toyota Camry stick shift and I sleep well at night.
Yep. 1999 Ford Explorer
2000 Jeep Wrangler. 2nd engine, and 2nd transmission. Completely rebuildable.
You are very wise
My cousin drives a new 70k Range Rover. I drive a 10 yo Mazda 3 with no mechanical issues or expenses in that time. She been carjacked!
Same here. Drive a 13 years old Toyota rush. Have zero debt . Net worth above a million.
Money buys time. Time means freedom. Time is the biggest luxury.
I think you forgot an important aspect of looking poor: safety. I know people who own a luxurious villa in a wealthy neighbourhood, but they fear for their safety every minute of the day. They can't enjoy their wealth. They're addicted to sleeping pills. They're afraid to open the door. They're afraid to go on holiday and leave their property behind.
EXACTLY! That's no life it's a living prison.
I've never had this dopamine shot from buying something. I wear my clothes until they fall apart. My car will be 18 years old in one months.
The joy from owning my old car and my caravan has become constant. It's not spectacular, but gives me a constant level of joy.
Yes, I live a simpler life than I could and I enjoy my financial freedom. I may not look really poor, but definitely not rich.
I even ride a bicycle about as old as I am. I got it for free about 40 years ago, because someone thought it wasn't good any more. It's still quite good enough for me.
I get a lot of stuff by the side of the road that people discard for no known reason. Once picked up a push mower that only needed a new spark plug.
40 year old bike? You may want to loosen the purse strings a little
I have top drawer shirts and bottom drawer shirts. The top drawer shirts are for going out when I want to look halfway decent, but not in any way flashy. Bottom drawer is for when I'm working around the house.👍
Funny, I do this too!
The first moments of this video made me chuckle. This is my parents 100%. They are 78 and 83. Their net worth has never stopped going up even after they both retired. My Dad's drives a 20 year old VW Passat and has no interest in replacing it despite having loads of money. Their biggest financial problem is RMDs...
RMDs?
@@laurencecheyne593 required minimum distribution from IRA. I'm trying to up my RMD.......
What is the point? You can't take it with you.
Required minimum distribution - money that MUST be withdrawn from their retirement accounts. People not needing money hate to do this because they are forced to pay taxes on it.
@@globalfamily8172The point is they have complete financial freedom. Not to mention money available for expensive long-term care should that become an issue, and for many of us it will.
When i was a young guy just starting out i worked with an older employee who seemed to have done well for himself over the years. It was a union shop so we made the same salary. I wondered why was it i couldnt seem to get ahead. Ill never forget his response. " It doesn't matter how much you earn, it only matters how much you save". 😊
My Apache mom's mother said the same . Bless you
I haven’t bought new clothes in years. There’s an independent thrift shop I go to that sells nice used clothing for $5 with a 20% discount. Whenever I need another shirt, pants or jacket I just go there and always able to find what I need
And China doesn't profit from it.
What about suits for your board meetings?
I sell the nice clothes I bought when working. Instead of buying. I get maybe one nice outfit a year. My winter coats are not new but look good.
I'm 26 years into retirement, thanks to careful planning and careful spending. I live in a relatively large house that is cheap to run, (no mortgage), have enough in an instant account to buy a new car for cash (if I want) and save around £400 a month. I run a 20 month old EV, very cost effective in the UK, and regularly use restaurants to eat out. Some of my clothes are very old but always clean and tidy, My coats were expensive to buy but last many years.
My lifestyle comes from never buying unless I can pay in full, my credit card has never been in arrears, Paying into a first class pension, never burning money by smoking and not borrowing to buy.
I don't look poor , I look self assured and always get good service when out and about. I live well.
I forget who said it, but this reminded me.
'You can be rich, or look rich. But you probably won't live long enough to be both.
A friend here in the UK was a mortgage adviser. She would have some man walk in having parked a shabby van and discuss should they buy a house outright or would it be sensible to take a mortgage of some kind. Next wpuld be someone in a brand new big car and they would be looking to re mortgage. Sometimes for the second time
I am currently on vacation in the Canadian Rockies and just retired at 62. Live in Dallas Texas, I have a used car and a small Codo that I paid in full in cash. Most of net worth in stocks and bonds that throw off lots of cash. Complete freedom! Loving life.
This has been my strategy my whole life. I like saving more than spending purely for the feeling of independence.
at work I was mocked for my frugality - making my own coffee, saving money, driving an old used car. Then I retired with enough nearly 8 years ago, and those who mocked me are still working at around 70yo since they couldn't afford to retire !
Being broke in my twenties taught me how to be frugal. Grew up middle class and got a small inheritance that I wasted due to a crazy husband and men who stole from me. I keep my money to myself now.
I agree 100%. I especially agree with the comment about the difficulty of walking back spending habits. I do cringe at the expression of "looking poor". I can have a modest wardrobe of good clothes and "look sharp". I can buy an older car that "looks presentable". A modest home can feel warm and inviting. Perhaps the word we are looking for is looking "content." Open to suggestions.
Well said.
Excellent points! Love your terminology suggestion.
First Timothy chapter 6 verses 6 to 9 in the Bible reads ...
6#But godliness with contentment is great gain, 7#for we brought nothing into the world, and we cannot take anything out of the world. 8#But if we have food and clothing, with these we will be content. 9#But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.
I tend to dress in very comfy clothes while at home but going to the grocery store I dress better and church I like to wear real nice clothes. Most people have lost pride in looking their best.
The consumer financial sector would be devastated if large numbers of people followed this advice. 😢😢😢
I’m sure glad I did exactly what you suggested. At 70 and retired for 4 years ago. I have money, a house and peace of mind. I never made a lot of money, enjoyed my life and was frugal. No debt and no worry.
Yes!!! Your entire message is the subject of a book I devoured as a young man in the 1990s entitled “The Millionaire Next Door.” It was one of the few books that changed my life. I believe it was Sam Walton quoted in that book who said he is a firm believer in “shopping in stores with concrete floors.” Though a bit dated, it’s still a great read. When it comes to buying lots of stuff, there is another book that has changed my life whose message is “If it ain’t eternal, it’s eternally obsolete.” Today, I feel I am wealthy in every way imaginable and in every way that matters. Thanks for the great message, Kevin!
The Millionaire Next Door is a terrific book. Based on proper research and I agree, if any reader takes in the message, it will change their life.
That book and it's follow-up The Millionaire Mind, which is just as good with teaching sound money management and lifestyle choices, quickly put me on the right path at a critical time about mid-way in my earning career.
Both of these books should be utilized in high school curriculum as required courses for career and household management studies to get the young people off on the right footing as they start their adult lives.
I totally agree with you. When I drove a new BMW , bought like crazy, and lived in a million dollar house, I was not near as content as I am now, driving a ten year old Prius, no consumer debt, and a house worth less than half of my old house. I do not desire the same things anymore, since they are all empty promises and they just don’t deliver.
You just described me and my husband in your first sentence. We started out poor. We lived within our means even though friends said we should use credit cards! We own our small house and used cars. My husband makes much more money, but we live the same way. We have a very nice savings and I really can't believe we are doing so well! I can't think of anything I want to buy that costs over $1000!
My in-laws had a neighbor worth 600 million. No, he didn’t go around telling people that, it was just commmon knowledge how much he’d sold his program for. This was in the 90s, and he was still driving around in a VW van from the mid 70s. And it looked like it! I think it helped the neighborhood see him as still the same guy.
I whole heartedly thank all those people constantly running on that proverbial treadmill. Without them, no debt would be created, our economy would stagnate, and my investments would become worthless.
Looking poor is subjective. Just like other non- specific words. I live comfortably, with nothing worn out, stained or ripped but not fancy, designers or bigger then need. I like it like that. A long lasting quality value item, place,... that I like. Not a "o-o-o, look at that!" to please or impress someone else. I agree, there is something freeing about knowing you could buy it, but don't because you don't need it. I grew up a long time ago. What I have does everything I need, just fine. If I want to buy something else I can.
Another plus to looking poor is when you get estimates for repairs on your home, they don't automatically jack up the price even higher than usual because you look like you can afford it.
The only caveat I would say ... if you buy a new car embrace it , take care of it so it gives you longevity and reliability for many years to come. I bought a brand new prious in 2011 and I still love it . I plan on keeping it until it no longer serves me.
Yes,and although people say “don’t get the extended warranty”, I always do. It has always paid me back at least three times over. It’s always been an investment. And well worth it.
I'm not rich but I was able to retire early at the age of 59. The people around you are more jealous of you than having money..
Me too. Class of 82? I’ll be 60 at the end of the yr. Most friends are still working…suckers. Time is WAY more important than money. I drive a 2016 Nissan pickup, wife has a 2011 Toyota. We could drive Bentleys, but choose not to because that’s just dumb. Good luck on your journey. This video is priceless. Thx
Good planning I’m the same age but still have a 3 years before retirement . I’m going to use social security and let my ira and 401k keep making money
@@dannyknapp515don’t take SS early if you don’t need it,it pays off longer you wait
My coworkers all ribbed me for driving a 20 year old Honda civic. They understood why when I walked in at 51 and left to retire early and travel the world full time, forever. They all understood the lesson pretty quickly that day.
@@tomf9292 Maybe they love their job?
I don't have lifestyle creep. Yes i have to up grade things occasionally because things fail over time. But I don't buy things that may give me momentary joy, by that i mean for example if I buy gadget, I fully expect to use the gadget for years. Only exception really is I have bought tools that were only used once and I could not borrow. However the purchase saved me the cost of paying someone else to do a job I was capible of doing for way less than paying someone. So even only used once it saved money and I have it for a similer future repair.
Best advice when I was young: If you can't pay for a car in two years, you can't afford it. Buying near 100k miles & selling about 250k miles has saved a lot over the years. Also buy/sell person-to-person to avoid dealer markup.
I agree, but have never sold a car in my life. When I finish with them they are being towed away by the charity (Cars for Veterans usually) that I donated it to! If it runs I am still driving it!
I've always bought new vehicles and made out okay. With new I avoid sitting in someone else's grime and I potentially avoid taking over someone else's problem vehicle. You just need to not buy more vehicle than you need, stick to reasonably priced vehicles, keep the cost of maintenance and insurance in mind, and take care of your vehicle so that you don't have to replace it often.
And, unfortunately today, you really need to be skilled at shopping at a dealership - because they will rob unprepared customers blind. You are looking for transportation, not a soul mate. Get to know the vehicles you might buy ahead of time. Only consider vehicles that are not in short supply at a dealer. Stick to one transaction per day if you can - just buying the car for cash. You can sell a current car later. You can arrange to borrow money ahead of time if needed. Take no dealer addons. No service contracts. No extended warranties. Take your time - my last salesperson kept lowing the price when all I was doing was reviewing my notes of different vehicles that I was considering. Don't accept pressure - head to the door whenever you want. Don't sign anything that isn't a standard government form unless it is printed out and you have read it completely - it protects you and gives you a good reason to nix the finance office products. Each person at the dealer practices selling vehicles perhaps 250 days every year, so you have to shift the purchase process out of their expert hands and into yours.
Ours is the three year rule for buying a car.
It was also great when the three year loans had zero interest. I miss those days! The best of both worlds!
I would keep our cars even longer, but I have to fight my husband all the time! He loves getting new cars.
I’m a walking contradiction. Transportation and comfy clothes are really important to me. I make jokes about my clothes with “Do I look like a fashionista?”. But, buy pickups brand new and drive till no longer making sense to fix them. In the past, vehicles lasted over a decade but in recent years had a few changes of heart and one unexpected accident (his fault, no harm to my body or insurance rate) have me looking like I change vehicles on a whim.
The point is I spend on what’s important to ME, not others. I’ve never been one to consider what the Joneses think. It’s served me well as now I’m retired and able to do what I want, when I want without worrying about needing a paid position. Life in retirement has been awesome!
I've never had a lot of money. But when friends who had been with my last f/t employer since school, were talking of looking forward to their retirement years, I bailed. Sold my little house, bought a 14 acre pasture in the wilds and planted woodland. Now 20 years later I've kept going with small p/t jobs, but now have free heating & cooking fuel, wild swimming and spring water, and people pay me to have breaks on my land. And I'm enjoying my solitude as I turn away women who are trying to move in with me....life's too good to throw my peace away.
You had me until you mentioned women… gotta wonder why. Why even mention that? Odd, that.
It makes me think that secretly, you wish you had a woman. Otherwise, why even mention it?
I agree! Very telling!
I bought a couple of guitars and a good quality amp just before I retired. I’ve been playing guitar on and off since I was a teenager. I worked full time for the best part of 50 years. I managed to pay off the mortgage and save a reasonable amount of money. I have a good pension. I consider myself lucky to be financially comfortable. I rarely splashed out money on fancy goods over the years. Any big purchases were thought out beforehand, and I always purchased quality stuff. I just wasn’t interested in fancy cars, designer goods etc…I now play for pleasure in bars and social events. I’ve met a good group of people and enjoy their company. Best purchase I’ve ever made.
Bought a Porsche 911, two years before I retire. A life of working hard for everyone else and doing little for myself. Thoroughly enjoying it. Time is running out. What’s the point of dying with loads of money? A few little luxuries make life far more enjoyable.
I agree. If it's not stressing you out, you can (easily) afford it, and it brings you joy well after the honeymoon period, then yes.
Maybe you get credits in Heaven?
Pick an extravagance and keep everything else mellow
Absolutely nothing wrong with that. I live below my means , mortgage paid off, but I bought my dream car, a Mustang GT ❤️
No difference between a Porsche and a Toyota, why waste the money on going from A to B? Give it away to charity instead of selfish pursuits.
This is very good advice. When I was working I seemed to be driven by status but since retiring I paid off the mortgage, my wife and I downsized our house, kept kept our car and iPhones and cleared the overdraft. We still cook and eat good food made with natural ingredients, we love our garden and maintain it ourselves and we dress fairly smartly when visiting the theatre and taking breaks whenever we feel like it. It’s very liberating.
Congratulations! We do this as well!
We have a wonderful life! If I wanted to buy a nice outfit, I would.
We have the things we want and like. It’s soooo fabulous! Walks in the woods (we pack a picnic and eat it at the picnic shelter), evening walks to see the stars (it’s quiet and lovely and we don’t have to get up at 5:30 am anymore so we can stay out late), weekday trips to the museums, sitting in a coffee shop to chat, taking weekday trips to do middle of the week hotel stays (cheaper) to visit other parts of our state. Visits to friends and can take our time… it’s all wonderful!
“Freedom from dissatisfaction“… I was very pleasantly surprised to see this as your first point! I often think of a quote which probably originated with a glamorous woman of the mid 20th century… “In first class you have luxury, in third class you have fun, in second class you have neither.” When I feel attracted to a luxury item, I remember all the times I paid a lot for something first class that did not live up to the sacrifice I feel I made for it. Yet I’m seldom disappointed with a third class bargain item or experience… they are sometimes free and otherwise usually worth many times what I gave for them. Dopamine generators!
I live a middle class retirement but my bank account is upper middle class. I’ve taught my daughter this way of life, live comfortably, safely, but shun designers and luxury brands. I learned this from my dad, who admired Buffet.
I have always lived below my means, so I know that you are 100% correct. I am now pushing 70 and have a comfortable retirement, no financial worries. Sadly, my sister and her husband only care about showing off. They are of course not well off at all. I manage a small trust that my mother left my sister. My sister wants to take five thousand a month out of the trust upon retiring soon. That would drain the trust in a handful of years. I suggested that she take perhaps three thousand a month so that there would be a good cushion for if she and her husband needed special health care or so the trust would last ten or more years. She became crazy mad. I understand. Without showing off her life is meaningless. She would rather die, she thinks. I have tried telling her that people would like her more if she was not showing off, but she cannot understand that. I hope many people see your video and take it to heart. I doubt it, but a few will.
@@elizabethrufener7280 I would love to do just that, but as trustee I am obligated to protect her. Also, if she ran the trust dry to purchase some show off car or jewelry, it's me who will have to support her and her husband. haha. They have social security, but they love to purchase expensive clothes. On the other hand, I might follow your advice. Thanks.
$3k a month is very difficult where I live. I spend $3,500 a month, however, brings in more than that from SS + 403b.
You have just described my husband and me. We look dirt poor but we are financially very independent. We can do what we want
We enjoy buying our needs at good prices. We are happy and content. We don’t want to leave loads of money to relatives, that is not the reason for our way of life. We just like getting our needs at a good economic price. Rebecca x
My wife and I have always lived as you promote, nobody know that we are as financially secure as we are. We don’t drive expensive cars, however we do own a hangar full of expensive aircraft and motorcycles that were paid for when purchased, as is the one modest home we live in. We have only purchased a single new car in forty years of marriage. We sold our second home after realizing it was a wasteful excess that other people used more often than we did. At 67 I still work because my job is so interesting and lucrative, but I haven’t needed to work for many years now.
I truly admire looking poor.
It is a blessing when you reach your Slow Go & No Go years.
Because my husband and I have been careful with our spending, we have enough resources to move from our area to a more expensive town to be closer to our children and grandchildren . I'm glad that our choices mean we won't be a financial burden to our children. I am seeing more situations where parents are having to ask for financial help from their children just to pay the rent and buy food.
That’s just strange. Unless you’ve had catastrophic medical bills or something similar, I have to wonder why?
My hack is to simply consume investments - I can then stay on the hedonic treadmill by getting my dopamine fix every time I put some ETFs or stocks, or buy some more retirement savings ;) After buying a shiny new stock or some mutual fund units I soon feel dissatisfied and want to buy a few more... my hobby is to collect NW.
Well nothing wrong with moderation.
I retired at the ripe age of 59 with house and cars fully paid and a large enough account not to worry about enjoying my retirement. I owe it all to one coworker that taught me early in my career to pay myself first before paying anyone else, and that included maxing my 401K contributions and personal IRA. I also never had to worry about creating a budget, but I never bought anything I couldn't afford to payoff by the end of the month and never had to worry about savings, since may savings contributions were automated and were beyond my reach. Obviously, I wouldn't have been able to succeed as well, without a spouse that thought the same way and some luck.
Great video. I strive to live below my means. It still amazes me to see friends and acquaintances who live high (eating out several times a weeks at mid and high-end restaurants, taking frequent vacations, attending expensive concerts etc.). Inevitably, when an illness or a death occurs, there is a "go fund me" to pay the expenses. I could not enjoy an expensive meal knowing I did not have adequate health insurance or the ability to cover funeral costs. I am still employed, but I have no major debt, except monthly expenses. I never charge more than I am able to pay off the next month. Yes, I would love to eat out every night, but an occasional splurge is more rewarding, both emotionally and financially.
It depends on what you mean by "looking poor". No one should look homeless or unkept. However, one can look modest, clean, well-groomed, and healthy while living below one's means. If you're doing it right, no normal person will know what your income level is just by looking at you.
Great video! A lot of food for thought. I liked also the point you made that, if you just pile up your home with clutter, not only you won’t enjoy it but also your family left behind will have to clean it up and get rid of it after you pass.
Guess what? It might be even worse than that. I had to clean out a loved one’s mess, and he was not dead. Rather, he was incapacitated in a facility, and desperate for my companionship every weekend. I had to do the entire job myself in order to protect his privacy and dignity. This took my precious time away from him, as well as my grandma, who was in her 90s, lived only two blocks away from his home, and was failing. People, clean up your home NOW. Who knows, the person who suffers the most due to your mess just might be you.
We built our own house. No loans. So it has taken us 10 years to build, but it sure beats a 30 year mortgage with all that interest just given to the banks. We drive 2 older cars. My washer and dryer are both 26 years old. Rarely use the dryer as I like the smell of my clothes hanging on the line outside. All our clothes are older. I love yard sales and thrift stores but only what we need.
I hang up most of my clothes, too. But the towels - no! They’re like sandpaper if I line dry them.
Living beyond your income is way to easy, but sooner or later it catches up
with you, your credit cards are maxed out, and then the debt collectors start to make your
life a misery.
Yes that was me 10 years ago, and i still have 3 more years before i will be debt free.
Living on a very tight budget is no fun, but at lesat it learns you how to make every penny count.
The best advice i was given came from a debt collector of all people, they said the only way
is to stop buying items that you don't need, that way you won't suffer buyers remorse and spend
many years trying to pay it all back.
Stick with it, Barbara. You will make it. It is such a wonderful feeling to be debt free, not worrying about which bills to pay and avoiding answering dunning calls. Been there, done that. It's amazing how much more money you have when you are not servicing debt.
@@phylliscarlton7110 Thanks, it has taken a chunk out of my life, but i am determined
to never overspend again.
Speaking for myself - I stayed single - never wanted to become a parent / that saved my life…
I have some goals - traveling, good medical care and buying a certain car I like, but I buy the demo and it's not the most expensive car I could afford. I will also hold it until it starts needing repairs. At some point you have to spend because when you hit your 60s, it won't matter how big your nest egg is when you go into a nursing home. I know people who died with millions in the bank but denied themselves modern plumbing! I live in a wealthy neighborhood, but we mow our own lawn, I trim the hedges, we do our own interior painting and I make the slipcovers (we don't use interior decorators). It doesn't bother me at all. I also shop at TJMaxx when our neighbors go to Nordstrom.
My brother has always said that about my husband and me. Now that we are retired, we are very comfortable. No regrets.
It's a fine line. In our materialistic world, books are judged by their covers and if people underestimate who you are, you may be treated rudely and miss some opportunities, especially in the case of older women who tend to become invisible. You need a thick skin, be assertive or at least be quite a sharp dresser to deal with that!
As a 50+ woman I agree. You need to present well but that does not mean expensive designer clothes. I know so many women who waste money on luxury brands. I look great wearing clothes I get a Macy’s on sale.
Too worn out.....and bored with what others think.......to care about what they think. What are they doing with their lives afterall?
Not sure where you go and socialize, but none of my friends would ever ever judge by those standards.
I am never treated rudely because of the way I dress, and I dress pretty casually.
I find that it’s really about my personality. I try to be friendly. I try to ask about others, and then listen. I actually have made so many friends this way that i have a difficult time fitting them all into my social calendar. If anyone ever were to be rude about my appearance, I would simply never speak to them again.
Your body should never be a free advertising platform for status-seeking businesses. The clothing and accessories I wear has no obvious trademark symbols showing.
Have to admit I didn’t have John Wesley on my retirement planning bingo card 😅 I’m the son of a British Methodist minister so Wesley was a name I heard a LOT as a child and the values described in this video were instilled in me from a very early age which probably explains the 2008 car in the driveway.
Ha. Wesley’s economic writings are fascinating.
I’m hereby holding us accountable as I have an 07 car in the driveway. Meet back here in 5 years , for I promise to still have mine.
Same here, got a 07 car in the garage.
I'm looking to replace my '05 with something about 15 years newer. But it has to break first. And I will pay cash for it. But I don't care about how I look- rich or poor. And clean out your garage so you don't have to park in the driveway!
@@ok2tmtsgI got 2001 Corolla, but it has to fall apart but it’s still pretty good 😂. I am buying new now heck with it.
I realized years ago that those people who used to look down on me because I didn't wear the latest Nike sportswear, weren't worth knowing. The truth was I couldn't be bothered to. I thought clothes were to keep you warm, not to flash off to the world that you follow whatever trend the advertizers pump at you! And they used to moan all the time that they couldn't come out for a meal because they'd run out of money. They think they'll only get approval from those who behave like themselves (the ones they want to know) if they wear the latest clothes, or have the latest phone. It's ridiculous.
The key point here is the need for approval. Not from anybody, but from the people who also follow fashion. They need to disregard fashion advertizers and then they'll be happy.
When we were younger and still struggling, my wife and I paid off our 30 year mortgage in 12 years by paying extra each month on the principal. We had 5 children and the majority of our clothing was nice and acquired from Thrift shops. We are near retirement and have never owned a new vehicle. Instead, we do research and purchase a good used vehicle such as a Toyota or Honda that has about 5 years on it and drive it until the wheels fall off. We are also happy to delay retirement a bit to maximize SS. When we retire in 5 years, we are going to travel and enjoy the fruits of delaying gratification. And our children will receive the balance from our estate when we are gone.
My advice is to RETIRE now while you are both young enough to enjoy travel. Never mind maximizing your SS. The payout will catch up if you have longevity, and if you don’t at least you have Paris.
I should know, shit happens.
@@sct4040 I have to laugh when well meaning, but uninformed people, offer advice online without knowing all the details. For instance, would you know that 2 of our children were born very late in our lives and are now in college. As good parents, we are helping them with this education cost and they are still dependents so we also need to cover food, medical, and living expenses. Also, since I have to work to manage these expenses, any SS that I could get paid would disappear because of the earnings criteria since neither my wife nor I are at full retirement age. Thank you, but I have considered what options are at hand and believe we have made the correct choice. We are in good health and our families are blessed with no incidences of cancer and longevity. Yes, anything can happen at any time, but the odds are in our favor.
@@sct4040 I have to laugh when well intentioned, but uninformed, viewers toss out easy advice without knowing all the details. For instance, would you know that 2 of our children were born very late with the last one born in our 40's? These two children are now in college, and as loving and helpful parents, we are assisting them with the cost of this education, plus medical, food, and other living expenses. Since neither my wife nor I are at full retirement age, any earned income will mean the the SS income test will remove the bulk of what we could theoretically draw.... thus no advantage to SS at this time. Both of us have no incidences of cancer in our families or extended families and we are both blessed with longevity as we consider the lifespan of our grandparents and parents. Yes, delaying retirement offers some risk, but we have considered our options and are happy with the choice that we have made.
@@appleman59
We felt that way too. Until our son died by suicide. I view life differently now.
Everything is a risk. You feel your life is managed through limited risk. I’m sure it is. But I say, also heed the words of sct4040. He’s just saying, consider what the gift of time could be.
Our Monthly Expenses: 1k. $85 Property tax, $15 UA-cam, Donation $140, Insurance/Towing/Tags/Tires-$130, Power $100, Hair/Grooming/Clothes $100, Eat Out $60, Pets $70, Misc- $175, Groceries $100. Our total Income is $1710 per month. 10K emergency cash & 85K IRA. Bought a fixer upper cabin on 9 acres, our DIY remodel looks great. Drive a 2020 E-Car but our driveway is dirt so we look poor
Y’all are doing a great job.
15 bucks UA-cam premium $ well spent.... 👌
@@beerman204 I agree beermat. Best $15 I've ever spent.
@@UTP504 Thank you, we're going much of our food, volunteering for 4 free organic meals per week, church potluck, etc. Just getting creative to cover food, it's otherwise our #1 expense.
$100 a month for food? For 2 people? I dont understand?How may free meals do you get a month by volunteering? Potluck means u have to bring something, too. Where do u live
A way to get yourself off the hedonic treadmill: when you think you want something, do all the shopping and research to find the best model, price etc. Decide to buy that one IN A MONTH or so. When the deferment period ends you usually find that you no longer really “need” it. If you still really want it, go ahead, buy it.
I’ve successfully used this strategy as well!
Very Informative.
I was taught this by my parents at a very young age.
I saved more money and didn’t really miss out.
Today, this poor lifestyle, built wealth and financial freedom.
I retired at age 45, today I’m 55 and really enjoying life.
I have no debt, have accumulated considerable wealth to spend going forward.
Love the reference to John Wesley. He is known to have said, “earn as much as you can, save as much as you can, and give as much as you can.”
It's not about looking rich or poor, it's about enjoying your life. I like nice cars, I'm going to have a nice one.
I don’t think he was talking about that.
You buy a nice car because you enjoy it - probably every day. That’s much different than someone else who experiences only momentary pleasure from a new car purchase. A very expensive way to feel good for a week or a month.
It’s all about examining what ACTUALLY gives you pleasure. What actually contributes to your feeling of well being. And if you can afford it, then go ahead!
His point was: don’t buy things just to buy them. Don’t buy things for that temporary surge of pleasure. Learn about yourself so that you know the difference. And then enjoy what you love, but you don’t really need the rest.
However, if you “enjoying your life” means that you never put money aside, then you also cannot reasonably complain when you retire that “you have no money”. It’s always, of course, your choice.
I can tell you that now that we are retired, we are very happy to have the money to do the things that give us pleasure. Money is the least of our concerns. And that is very liberating. By the way, our two year old car was paid for in cash. Just went in and wrote a check.
@@deekang6244 Excellent! Totally agree. And if you have little money, retire anyway and enjoy painting, writing, visiting friends or whatever brings you joy.
Peace of mind is more precious then all the consumer crap/cars/houses and designer junk
Dont need any of that stuff Free time and bright future is what it is all about
In my town, there’s a lot of very rich farmers. But she wouldn’t necessarily know it. They’re driving an old beat up pick up trucks, wearing worn out overalls, and have enough cash in their pocket to buy a brand new car. It’s quiet money.
I've never found happiness in impressing others. I also never found happiness in extravagance. I don't really care much what others think of me (well, other than not thinking I'm immoral or criminal). I've done well financially because I'm frugal (but don't deny myself quality things that have meaning for me) and learned how to manage my assets and to invest safely (I've never paid a cent in credit card interest). In the end all those you chose to try to impress don't care about you and won't contribute anything to your life so why spend all that money just to impress them ? People who only want to know you because you seem to have a lot of money are people you should avoid.
One more benefit of "pretending poor" is that it is easier to raise good children. When my 2 sons graduated from colleges and they realised that we were not poor but, on the contrary, quite rich, owing 3 houses in Silicon Valley. But, their life styles were already built in. They were never given presents unless they achieved some goals. They love to save and invest money. At age of 30, both of them are millionaires already by being smart in managing money. Another benefit is the enjoyment of purchasing. We spent a lot of time to decide what we want to purchase. The searching, discussing, analysing prolongs the joy of purchasing. We always return wrong purchases. We only buy what we like and continue to enjoy. By making purchasing hard, it is far more enjoyable because it is a sport for us.
Not only do you have the knowledge to build wealth, you have wisdom regarding it. Excellent video.
Thanks!
Don't wait until you are "preparing for retirement," unless you are taking the long view, and you are "preparing for retirement" starting at age 16. That's the smart move. For the past 20 years, I have driven cars that are at least 10 years old. My business truck is 14 years old...195,000 miles and still going strong. My suit is 12 years old. I unsubscribed from cable TV. I don't eat out. I buy food on sale and I have a 15 year old manual defrost deep freeze and a 30 year old refrigerator. My house is paid for. I pay off all my cards every month. I pay out no interest. When my church has a mission trip, I pay for a portion of someone else who doesn't have all the money to go. When my employer closed in January, I bought that old truck from him and started my own company. I make almost four times what I made as an employee, and I have more personal time... like right now...and it's before 1:30 pm on a Wednesday. I am preparing to write a class for our Christian school about money. DO NOT wait until the last minute to get ready to be "old." Delay your gratification. I submit that if your special someone likes a lot of new stuff all the time, you should find a better someone. I'm not kidding. Marry someone who is also wise about money, or it will tear you both apart. I am truly blessed, and one thing that helped me was not taking the bait of advertising, which encourages you to buy, buy, buy. I also stay away from most social media, like face, tok, pin, and x. Keep other people out of your head, and make room in your heart for God. I wish someone had told me this when I was 20, but I got smart at 43, and it was not too late. Start sooner, and have fun.
Years ago I ran into an Oscar winning actor buying cases of Shasta soda at the 99 cents store. He got into his 1970 era station wagon. This was in the early 2000's.
Here in the Netherlands we use often the proverb "Act normal". If you show off your shiny new car or talk about the money you have, your are considered a idiot. Nobody here cares about your job, the size of your house, your education or the amount of money you make. On average the richest people in this country are the senior citizens that saved a lot of money during their lifetime and now retire without financial problems.
In the Netherlands no one cares about what others make or have because everyone is pretty much equally “low income” due to the horrendous taxes and fees that everyone has to pay. Unlike in a few other countries where people pay much less taxes and have an easier time accumulating wealth. In the Netherlands basic necessities like medical service are “free” so people don’t stress out about trying to get ahead in life and are more content with what they have - thus don’t care what others have.
I have always admired Dutch common sense practicality and their no nonsense, simple approach to life. We could use that mindset in North America in a lot of areas. Would solve a lot of problems.
Both my wife and myself came to the US from a different country, with no money and got a late start with our professional careers (both of u are engineers). We were always savers and had modest cars and we were not big spenders on clothing or eating out. If we had car problems or house maintenance issues, we went to UA-cam to find repair solutions and did as much as possible ourselves. We are now in our early sixties and have way more money than we need for retirement. We are still working because we enjoy what we do.
Right now, we are looking into online part-time work, so we work/travel internationally.
Appearing poor is invaluable when you have adult children. It's truly a balancing act.
My "relatives" .......actually have the skills and resources to keep track of my bank account(s).....etc. Family never gave me $$.......but they want $$. Who would believe?
I've got this down! 10 year old Honda Fit that I bought new right before I retired, 12 shirts, 3 pants, 2 hoodies, a jacket, one pair of shoes and a coat, no real estate, minimal stuff. By choice. If I suddenly got the urge to get my clothes at Neiman Marcus, live in a gated community, and drive a Tesla Cybertruck, it's comforting to know that I could. I guess. But I like my freedom.
For wealthy people , looking poor may work for them. For me, I find that if I dress nicely, look clean and wear a little makeup I'm treated with more respect than I would if I look poor and shabby. I also feel better about myself and act accordingly.
Hello 👋Beautiful Lady 🌹,How are you and the weather condition like ?
Looking poor is great especially when you are rich!😅❤
Oh it’s so fun!
What’s great about it?
People point at you and say, "Oh look at that poor person, can't even afford a piece of bread, I bet."
But I've come prepared, and snatch a lobster tail out of one pocket, a packet of butter from another, and a crustacean glove from my third hidden pocket.
I eat my meal in the vicinity of all the prejudiced townfolk as they look on in amazement, realizing how judgemental and naive they have been.
At least that's why I enjoy looking poor.
@@donf4227 hahahah A+
@@kelway74 Great fun! I had smug satisfaction at work when it was stressful and aggravating, because I was making more money on my investments than from my job.
Yep. We drive 20+ year old cars and live in a 1100sq ft house. I mow the lawn. Mostly retired at 60.
Great advice. My boss can't afford a Ferrari. I can but would never do it because financial freedom is more important. And I do not need a Rolex. I am wearing a cheap Omega watch.
I have an older but great car. Now I can pay cash if I need a new used one. That’s how you avoid high interest rate I have only a small mortgage every month plus expenses food and gas.
I grew up with my Dad doing all the work on our house no matter how much money we had. I never associated it with being poor. My Dad just wouldn't hire someoen to do a job he could do. He replaced our roof by himself. He scraped all the old paint off the house and repainted it. He installed our TV antenna on the roof and even built our TV from a kit! This was in the 1970s and 1980s, but he continued doing it all his life. When I was around 6-10 we lived in a really fancy neighborhood, but I never felt like we "looked poor."
I’ve only recently upgraded to a modern car “expensive” only 4 years old, and to be honest, I appreciate how technology has improved things. But I feel more comfortable dressing in comfortable and practical rather than trendy clothes, growing, cooking and eating mostly at home, only dining out infrequently. I’m spending far below what I’m earning through investments after 16 years of retirement, although part of the reason is deferred gratification earlier in life to allow me to grow my portfolio. To be honest, I have no desire to complicate my life by increasing lifestyle items like boats etc, but I am gradually learning that it’s ok for me to buy the things I would use, for example a solid silver concerto harmonica!
I’m finally successful in my financial plan.
I'd rather look poor than be poor!