Here’s How Money REALLY Works
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- Опубліковано 25 чер 2023
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There is a lot of bad money advice everywhere that’s failing to teach you the truth about money and how to build wealth. But when you see how the system works, you can outsmart it, break free, and build wealth on YOUR terms.
Check Out Financial Peace University: www.fpu.com?UA-cam&GKUA-cam&GeorgeKamel&
George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
The best money advice I ever got was "What you own, owns you." It's the disease of wanting everything that keeps people poor. Once you stop buying so much stuff, you can simplify your life and be content with what you have.
That’ll preach
100%
I've heard it a little differently. "The more you own, the more you have to worry about."
Yea Tyler Durden told me that when I got into that thing I’m not suppose to talk about
@@gusramirez2517 do you know what a duvet is?
Purchasing a home showed me how many people get a piece of my money. The closing statement was a laundry list of entities that got paid. Bank, Appraiser, Inspector, Lawyer, Title Company, Real Estate Agent, The Government (Taxes), and whomever else I am not listing.
I started the debt snowball in January this year. I have been able to eliminate around 50% of my debt in the first 6 months of this year. I should be debt free by the end if 2023 and then I will save up for a house.
Congratulations 🎉😍It's such a great feeling!! We're debt free except for our home we bought 2yr ago and plan to pay it off in the next 7yr.
I dont know who needs to hear this saving for a better investment is a great step to financial freedom you're saving a day off work
The best advice of the year so far-you've covered so much ground. The best step toward financial freedom is saving a day off of work. I am really eager to begin investing.
@@bashirauwal5825 Yes, it has helped my overall income; I earn roughly 2k each week from my investment portfolio
Wow that's awesome I'm really excited about this how do I get started
There's a lot of investing options real estate, cr ypto, ETFs, s tocks but my best advice get a professional lead you into profitable one
@@albertcharles4415 Ok how do I get one of these professionals to guide me through the process can you recommend one ?
Nice to see you have your own channel now. I came from a poorer background so wasn't taught about finance but have learned over the years how to manage money. The shows you and the Ramsey guy produce have further enhanced a different way of understanding Finance so thanks for that. Keep up the good work.
I screamed laughing when I saw that Dr. Delony clip!! I really appreciate you and Dr. D, George. I also appreciate that you don’t yell at people for not having a house right away. That is much more complicated of a decision than I have been lead to believe.
At the end of the day, you need to be ready both financially and mentally to buy a house. Trying to jump in to it before that, based on a fear that you might miss out is a sure fire way to end up regretting the purchase, or worse, ending up in financial ruin. Now there are always exceptions….but I’ve never heard someone who was truly ready end up regretting their purchase. I have encountered far more people that simply jumped in without being fully prepared that do regret their purchase though.
It’s definitely a complicated decision…but it’s definitely worth taking your time and only jumping in once you know it’s right.
@@DB-bw5fz Absolutely! I’m not anti house, I just want to take the time to make sure that I understand the entirety of what I am getting into both in terms of finance and physical labor. I don’t take it lightly and don’t want to be in the position that George talks about where it is more of a curse than a blessing because I felt pressured and got a mortgage to just get in the house and now I’m in too deep.
Great job George Kamel with a K!!! This is great information presented in a way that's informative and funny! Your videos are awesome you and your team are doing a great job! I've already subscribed, I liked, and I'm sharing on the interwebs... Keep up the great work!!!
I can’t go through a conversation without mentioning either Ramsey (BS3) or my weight loss journey. I’ve lost about 60 pounds
Great job!
Love this guys channel, super entertaining and speaks the TRUTH in a simple way that all can understand. My favorite Ramsey cast member
Another awesome video George, we love you man.
You rock man! I love your videos. Keep up the good work my friend!
Man I have been waiting for this all weekend!
Love your videos and your sense of humour !! I live in UK and some things don’t apply, but most of them do.
Love your videos and sense of humor
You are very good at this George. Nice work man.
Student loans have absolutely gutted my financial future.
Outstanding video! you have serious skills on camera
George, you are my hero! 🤩💰
Absolutely love your videos! 😂
Epic video George! Lost it in the Girl Scout meme. Great advice.
Dam Daniel !! Back at it again with the videos!
Im so inspired on step 2; I'm working for the change.
Apple Watch going crazy with all the wrist movements 😂 Great vid though! Keep it up!!
Love the videos! All true!!!😂
That mitochondria reference was absolutely on point 😅
Helpful showing visible numbers of total monthly payments
So good!
"Its a perfect snowball" SLAM!! 😂😂😂😂😂😂
Get it together Brad!
1:27 "I use it almost on a daily basis... To annoy people" 😂
These video edits are nonstop. 😂🤣. What a journey in just one video.
Life is journey bro
@@GeorgeKamelI show your UA-cam videos to my 12 years old son when I spend time alone with him, he loves listening to your UA-cam videos, thankful for you. ❤😂 he told his dad about your stories about calculating toilet paper costs, eating samples at Costco, spent less than 100, then got your Tesla in-line for Costco gas, left your wife car at home … 😂
holy smokes, love a good crossover! shout out to John and his rocket references
🎶When I get that feeling, I want financial healing.. Financial healing. It’s good for me..🎶
Yes, I know.. I’ll keep my day job
What aAAA FEEEELIIIN... Gloria Estefan? 😁😂
@@motoryzen Irene Cara, RIP.
Man love your content.
Just out of curiosity, you say that the number one wealth builder is your income, yet the only thing you ever discuss are expenses and debt. Why do you never talk about how to increase your income?
Omg. Mitochondria! That's the one thing I remember and no one talks about it. 😅😅😅I can't 😂😂
That was a great video lol
I only have $2 and a VISA credit card in my wallet........But I have $263,000 cash+investments at the brokerage and don't owe anyone any money and I continue to make sure of that. My total budget to live on is
Here's how money works. People say currency is money and it's not. The only thing that gives currencies value is peoples trust. Real money is gold and silver which have value for 5000 years. Currencies all seem to loose value and die over time. Saving currencies is like using a leaking gas can. CREDIT+DEBT=DEBT SLAVE. A pre 1964 quarter's silver content still buys a gallon of gas today. I have less than 1000$ of utility and insurance bills a month. Debt free. I can almost put 5 oz of gold away every year. I used to get coin rolls to look for junk silver coins.
George! I absolutely love your videos. It's insightful and funny. Thank you for sharing! I'm a 23 year old looking to retire in 10 years! I have my doubts but we'll see how it goes :)
Well at least you optimistic :) We all should have dreams and hope.
@@westbccoast Well, I'm over 3% there not including investments, retirement fund, and material assets. :)
I need to see an interview between you and Robert Kiyosaki with such intelligent but different viewpoints with debt!
It's the truth. Will YOU stop being normal. Kick theses things DEBTS to the curb.
Great podcast. Keep up the good work.
As a Brad myself, I enjoyed this video. 😂
This video also made me want to buy thin mints… those are sooo good
now you HAVE TO include link to that Steve Martin tweet LOL
Whilst the debt avalanche (paying off the debt in order of interest rate) will help you pay off your debt faster overall and consolidation helps you pay it off even faster, the snowball will cause you to see results sooner, so you're more likely to stick with it.
Also, if your debt isn't too big, you could get a zero-interest credit card, and borrow from that to pay off your debt. However, if you don't pay off the card within the time limit, then you'll pay massive interest rates (which are sometimes applied retroactively to the interest-free period), and you'll end up paying off the debt slower than you would've with the avalanche. So only do this if you know you'll be able to.
“Brad stadium” is something I could get behind!
I remember my boss made $35K in 1988,and he drove a corvette. I thought if I ever made $35k, I could afford a vette!
Oooof that is a lot. Idk what year theirs was, but a new Corvette back in 1988 was $29k 😬😬… how did he even buy that??
@@guevarasamson1165 I have no idea. But I was making well over $35k in a different job a year later. I kept driving my Mazda 323, and later bought a Toyota Previa. Combined were less than the Vette.
0:38
Nobody:
George Kamel: :3
Chevy Trax is LEGIT! And they are cheap too. Nowhere near $700 a month.
George i can't watch u on my lunchbreak anymore i almost spit my food out because i had to start laughing at your memes
Great stuff and fun compilation. Thanks!
And why are car payments over $700, and mortgages 8x income? Couldn't be inflation, could it?
Is the hot tub a time machine?
George... T-Mobile is forcing their autopay customers to change from paying with a credit card to a debit or bank account in order to keep the $10/mo discount for being an autopay customer... Is this legal if you are already a customer???
Yes, absolutely legal.
Yes.
This is probably the best advise on the internet on how money works, but I wanted to express a real world example on how wrong it is to take out a loan (for this argument let's say a car debt at 3% for three years) and then taking that money and investing it in an index fund in the stock market to beat the debt for the next three years. Lets say that you borrow $15,000 to buy a new car at 3% interest, and then you take your $15,000 cash and invest it in an index fund that on avarage brings you about 6% return (sometimes it may be as low as 1% or even into the negative, you never know with the stock market). Well this looks like would work and you are using debt to beat the system, right. Well in my opinion it's wrong, and I actually put thought behind it, and did my own math, because you are borrowing money to buy the car, the car actually is not yours and you have to get expensive full coverage insurance for it, so not only are you making debt payments, you are paying through your nose for full coverage, and depending where you are in the country, that can be as high as $1,200 every 6 months, or higher if you are not a good driver. So all of a sudden your payments are actually higher than your originally planned, however if you paid cash for it, and then invested only $5,000 and you save money because you buy "cheap" insurance, only what is required by law, now you don't have anything draining your income, and you can increase your investments if that is what you want to do. There is a reason why immigrant families don't borrow money, because immigrants (legal or illegal) come to this country to make money, and they know that debt is bad, and they save like crazy to make sure they have a good strong base for emergencys. When I decided to pay off my debt, it litterarly changed my life, I can equate it to deciding to get fit, just like getting physically fit, it is important to get financially fit. In the financial world, debt = fat, and we know that fat weight is bad, therefore you get rid of the fat via dieting and exercise. In the financial world the dieting is paying off debt using the snowball method, and exercise is increasing your income by changing jobs, dong a side job (not a business, but side work that bring immediate income).
So get in financial and physical shape, and you will feel better, after the begenning, you will actually eventually enjoy the process.
I will never understand how money is such a taboo topic in families.
Hey George, the Girl Scouts have gluten free cookies now 👍 😜 🍪 I learned from a neighbor, because I don’t buy them haha. Eat pretty healthy 🌱 😉
Although the message is great that it's more about "the money you keep and not what you make", I have never agreed with the message that you can invest 100% of the paid-off car payment. The message should be that you use that to save up for the next car by paying yourself (keeping your cash). This then turns into an emergency car maintenance fund. It's a given that a person will need to replace a paid off car.
Or you setup a line item in your budget for car maintenance. You don't just buy a new car when your car needs to be maintained. I prefer investing it. I'll save later on when I'm ready to buy a car. A well maintained car can last you many years. Investing the majority of that car payment makes quite a bit more. That's investing in yourself.
@@RBMastersinc Geez I didn't say buy a new car when the old breaks. And not everyone can find 10k to 20k to purchase a replacement car. Must be great you can. Continue to make some kind of car payment to yourself is planning ahead which keeps you out of debt and more consistent with investing...
Hard seeing a finance guy that's funny 🤣
I could only WISH for a 23% interest rate. Mine is 28.99% 😭
Who else wants to see John DeLoney‘s reaction to his brief appearance in this video?
“Money is deb-“
Oh sorry wrong channel.
Mr Kamel, if I may - as a gen x'er with ADD, the watch face lighting up throughout the talk was a pretty good "squirrel!" moment for my brain. I kept up, but thought you may want this info for future videos. Attention spans arent getting longer these days. Thank you for your videos.
Basically times are uncertain, the market is out of control, and banks are gradually failing. I was really hopeful of my investments this year, but I followed some stock suggestions that didn't go so well. I've been studying the stock market and I realized some investors made millions from the last recession and I was wondering if such success rate could be achieved in this present market.
Clearly the recommendation is switch all your savings to bitcoin. Cryptocurrency crashed the last couple years, so it should be starting a new run to a new high.
I built a 7 figure well-diversified portfolio just by following Trisha Jean Webb's recommendations. I buy quality firms, anticipate to hold them regardless of what happens, pay up but not too much, keep track, sell only when necessary, and be ready to course correct. also ignore the forecasts and market views which are at best entertaining but completely useless.
@@JuneroseCarcina i just looked up your broker and found her web page. she has a pretty decent bio, I wrote her and I'm waiting on her reply.
To save money I have been shaving my head since I was 19. I’ve long since accepted I’ll never be a sexy hunk o man like George (I’m not gay). Anyways every couple of weeks when I would’ve been getting a haircut, I’ve just been saving and investing that. I’m 40 now and you wouldn’t believe how much I have in savings.
I make a lot of money on credit card points. But I'm also responsible and disciplined and never carry a balance. I realize not everyone is like that though.
@@SmackdownOutdoors fair enough. I am essentially getting some of my money back that I wouldn't have if I had paid with debit or cash.
Most people have the temptation to overspend then get hit with late fees and interest and ruin their credit score
On top of the free trips with miles, no $75 bag fee, no comprehensive insurance on car rental, global entry fee reimbursed, and you board in group 2😊
Never stop talking about Costco.
Try and limit the interjections to 2-3 an episode. Just a bit excessive from what I’ve seen.
I want cinnamon rolls!!!!
I kinda wish he’d get to the point instead of making bad Jokes, but I’ll still watch sometimes I guess
Georges channel is seductive.
Bro, how could you ever hate on Steve Martin.
I was young and dumb
Im the only one who wants the personalities be taken out of context for memes 3:21
time to leverage my cash back on arbitrage lol (yes i'm being sarcastic)
1 waiting wonder who
Dude, that snowball short was hilarious.
George, I like your videos. However mortgage should not get some special treatment being separated from debt. This is because mortgage equity built is not liquid and immaterial until sold (long, stressful and expensive process). Then realistically being forced to buy something else to live in with the equity, so it is not available for other than housing. Really a mortgage worse than consumer debt in that it is usually way larger and the consequences if defaulting are usually much greater.
Agree and disagree. Everyone has to live somewhere. A home is one of the major wealth building tools for Americans. The asset generally appreciates over time. As long as you don't overpay for the home and the expense is less than 25% of your take home pay for a 15-year-fixed mortgage, most homes are blessings to Americans. In a pinch, you can resell a home. You should not buy a home unless you plan to live there for greater than three to five years. But, a home should not be considered a liquid asset. A mortgage is debt, but it is fundamentally different than credit card debt. No one wants to re-buy your groceries from two weeks ago that you forgot to cook. This is why the Dave Ramsy crew recommends paying off a home when all consumer debt is cleared, concurrent to saving for retirement and saving for your children's education.
You have to pay for housing. It doesn't matter if you own your home and just pay a mortgage and property taxes or if you rent, you are still paying! Even after you paid off your mortgage, you still have to pay your property taxes, maintenance fees (if you own a condo, apartment, or live in an HOA area), and home insurance.
@@roythousand13 Since everyone has to pay for housing, which is true and going by that logic: a reasonable mortgage and the equity should just be considered a sunken cost of living, not wealth since living somewhere is an overhead cost that has to be paid. You think a grocery store manager would sell groceries based on a paper gain? There are exceptions but generally.
@@stevenporter863 Not all wealth is liquid. If one wants to extract the monetary wealth in the appreciated value of a home, they can sell the home then begin to rent, downsize homes, or move to a less expensive location. Home equity could be considered overhead that has the theoretical ability to be retained when sold.
@@anonymouspianoman5156 That is the point. Equity is really worthless until you sell -like a stock paper gain is worthless until sold. That is why there is the term house poor, really illiquid. Like having a car with no gas. The car is useless until you fill up with liquid gasoline.
Money is debt -Robert Kiyosaki
No. Borrowing is debt. Money you earn is you own.
Take public transport. Sell the car
That isnt a practical reality for many people even in the USA.
Not every place is Denver CO
LOL pretty sure Dave Ramsey uses debt with his Ramsey Solutions businesses
He's talked about how he doesn't regularly.
He literally doesn’t. He paid cash. He cash flows his business. Even his business card is a debit card. So yeah… you’re wrong.
Hey George, I completely agree with you and the rest of the Ramsey team...except for one thing - credit scores. Now while I also agree that chasing points and miles are a corporate scam, unfortunately, not having a credit score can make things harder. Some examples are getting a rental car, outrageous deposits for apartment and utilities, car insurance rates, and even potential employers check credit. What I've been doing is living predominantly on cash, but putting things like my Netflix, some utilities, and dollar shave club membership on credit and paying then off immediately. What are your thoughts on that?
my favorite people are the ones that get angry because you tell using credit cards are stupid ... then they go into "but but but muh airline miles and points" ... hate to break it to you kid ... no one ever became wealthy through airline miles and points
The same can be said when anyone says using debit cards are stupid. I'm in banking and I REFUSE to use my debit card because the protections 100% are NOT the same. Also the bank does an investigation and if they find its not fraud they don't give you your money back. At least with credit cards its their money on the line. I've had banks find not in my favor when my card was hacked. Yep I switched banks but never got my $2,000 back...
I make 1000s per year on points redeemable as cash. I think if that is invested in an S&P500 index fund I would be a millionaire based on that investment account alone. So, I think you can get wealthiER with CC points and miles. But of course you have to spend that money to earn points. Same as a debit card that earn points, like the Gazelle was going to be. . .
Lol then I'm one of them cause I've never paid cc interest in my life and I'm 40. My favorite are the ones that can't think for themselves and control spending and blame the cc. Kinda like blaming the spoon for making people fat.
All debt paid off including home here. Maybe it's not for everyone, but I've never paid credit card interest ever, paid off in full every month on auto pay. I might as well get a few free family vacations a year. I never claimed to get rich on points. You just have to have discipline to not buy more for the points. With a family you have so many fixed costs. The home insurance / utilities/ gas is going to be the same price regardless if I put it on a credit or debit card.
@@jake9167
Agree gotta pay it, might as well make a few dollars back.
Cheaper by the Dozen 2 may not have been as good as one but it's still great so...anyway, guess that's my two cents.
Debt is a good way to live out of your means. It can be used to build wealth, I did. But I am in a extreme minority.
I used a VA Loan to buy my 218k house, appraised 245k, with 0 down. The rate was 2.5% and I pay 1180/monthly.
The 1180, includes the property tax and insurance.
So if I got the math right you paid 218k with a 2.5% interest rate which means by time you pay it off you will have paid 225k ish ? It's currently worth 245k which means you are up 20k if nothing major goes wrong like a roof or H/vac ? How much more would you be up if you put 20% down instead of 0% another 43k so in total you would've been up 63k correct?
Interest you earn is a reward? Really? what if you earned that interest from banks who are charging your fellow countryman interest? Then that interest earned is a SIN.
If the banks were only charging foreign nations interest, then OK, I'd be willing to accept interest profits from them. But not if the bank is charging my fellow American countrymen.
That’s not all the payments, electricity, heat , taxes etc
I understand the credit card thing about people missing payments and piling up debt. But I just used my brain and didn't spend more than I had on a credit cards. Never paid a dime in interest until I bought my house. And got free money/rewards on the way. That being said. We don't use cards cause of dave ramsey now. So now we don't get rewards and spend the same amount of money.
Consumer debt is bad, and rest can be good
God, the Lord Jesus Christ loves you! Restore your relationship with God by repenting of your sins and putting your faith in Jesus Christ, "... that Christ died for our sins according to the Scriptures, and that He was buried, and that He was raised on the third day according to the Scriptures..." (1 Corinthians 15:3-4)
Using debt as a tool to build wealth is that you buy assets like real estate, and then pay off that debt with the gains that you get from having that asset increase in value or its cash flow. It’s not about spending money you don’t have on things that don’t increase in value, like cars. Stop lying.
Most people who dont buy a house listening to this guy end up worse off then the person who buys a house.
People expect schools to raise their children. It's not the school's job to teach your kids about money.
I'm so disappointed. You mention diarrhea, show funny clips, but neglect Beavis & Butthead. "Diarrhea, cha cha cha". SMH
Sorry, but you are wrong on so many levels! A little ketchup on pizza is excellent! Just saying 😀
Not helpful. Jokes unfunny.
Try 20% less memes? Im here for a 10 to 20 minute video. Im not in need of another source to ruin our generation's attention span.
Parents should be taching money not schools.
He makes it sound so EZ!
georgeTHEarab