Warren Buffett: Be Cheap to Get Rich?
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- Опубліковано 19 чер 2024
- For my private stock portfolio & revealing insights into my investment strategy, head over to: / theswedishinvestor
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Warren Buffett isn’t just one of the richest persons on this planet, he is probably also the billionaire with the lowest expenses out there, and he has kind of always been this way.
- He usually spends $3.17 on breakfast at McDonald’s. If the market is down, he’ll pick the cheaper option.
- He still lives in the same old house that he purchased for just $31,500, more than 60 years ago.
- Heck, he even used to drive a car with a license plate that read “THRIFTY”.
At the same time though …
- In 1989 Warren Buffett’s company spent $6.7 million on a personal jet airplane.
- In 1952 he bought a Dale Carnegie speaking course, which turned out to be quite expensive if you talk in terms of opportunity cost ($291m), but we’ll get to that later.
- Also in 1952, Buffett splurged 6% of his then net worth on a wedding ring.
He even calls his purchase of the wedding ring “the best investment” he ever made. Although Charlie Munger used to call the jet airplane “The Indefensible”. Anyhow, it is clear that the Oracle of Omaha thinks that sometimes - an investor must be willing to pay up - even outside of the stock market. So that begs the question - how frugal should an investor be? In this video - we will boil the topic of deferred gratification down into three separate takeaways.
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Warren Buffett how frugal should an investor be timestamps:
00:00 Intro
01:42 1. Why Frugality?
03:44 2. How Frugal?
07:41 3. Staying Frugal?
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Warren Buffett: When to Sell a Stock? • Warren Buffett: The 3 ...
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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.
I think everyone goes to believe that being as cheap as you can be is the best for your financial independence, which is also completely true but life cannot simply be about making money and dieing with the stack of money you have. You have to use it to enjoy things in life as you get older. You cant enjoy travelling or go sking in your 50s with your terrible health cause you decided to eat instant noodles everyday to save money.
Find the right balance for you that defines you as a frugal investor while still living your life to a point where you are enjoying enough to be happy.
You're not my real mom.
Buffet enjoyed his life, he ate his favorite food, drink his favorite beverage, lived in a house and place he liked and do what he enjoyed doing (Investing).
Oh no, it's the "eating healthy is expensive" meme again!
I'd rather have frugal millionaires than the ones I see where they flaunt it at every turn
Life is easier to live with more money than less. Spend 5 or 6 years making that money, you can spend the rest of your life enjoying it. Depends on your motivation I guess. But id rather use .y youth to make tons of money.
I tried avoiding buying a car at all cost but I ended up purchasing a used Toyota Yaris $4,500 cash. I think it’s one of the best investments I’ve ever made!
Yeah Toyota are good investments. They are easy to manage and they don't give you too many senior citizen problems when they get up in miles.
Datsun B210. I’d buy 2 new ones if they were still made and I’ve never bought a new car.
@@JBulsa Buying a new car is a SCAM.
@MattyI guess what I’m trying to say is everyone or most folks need a car. My Toyota goes 31 mpg in the city and 36 mpg in the highway. I’m saving lots of money compared to the average person in just gas alone. 4 new tires for my car only cost $260. The average American will $620-$750 for 4 brand new tires. Maintenance is also very cheap compared to other vehicles. Toyota are also known to go above 300k-500k mileage . Looks like I won’t ever need to buy another car in my life! I only have 99k and drive an average of 6k-7k miles annually. The math says it all. I know it’s not a true investment but in my eyes I see that I am savings lots of money compared to the average American
It’s not an investment is it doesn’t appreciate brother. Let’s stop looking at everyday things that make our lives easier as investments
Investing is my hobby. I spend a good chunk of my money on it
until you stuck and lose, you have to make solid decision
spend your money where your time goes!!! Eg pople say car enthusiasts are stupid for spending so much on their car... like the person who said it is probably very naïve
@@MixSonaProductions what ?
It is an expensive hobby 😅. At this point I don’t know what non-investors spend their money on. One can only buy so much food, rent, and designer clothes.
@@thegreekgodofwallstreet2509 they say it's expensive but it's made me more money than what my job can pay. The older I get, the more I make
From my point of view this comes down to just 2 points:
1. Try to earn more so that you can put more money aside
2. Get used to living frugally without even thinking about it. You don't need the brand clothes, the shiny new care, or that expensive trip, or you don't need it yet. Get used to that and you'll save a lot of money without even thinking. Don't be cheap, spend money and give money when required, but don't always do it.
This was a really good video, especially when you're talking about how he remains frugal. He could go out and buy more jets, a fleet of yachts, one of every expensive car model in the world and upgrade to a huge mansion but it would not buy him happiness, nor does he feel that it is needed or required for more useful purposes. You can only drive one car at a time, eat so much food at once, live in one house at any given moment. His expectations towards living his life haven't really changed since he was a young man.
To give an extreme example of the other end of the spectrum, I was watching another video where Shaq was giving financial advice to new NBA players who are suddenly making a lot of money. Shaq essentially says to save 75% of their salary and play with the remaining 25%. This seems rather wasteful at first because if an NBA player makes 8m, the remaining 25% is 2m - far too much for the average person to spend in a year. However, new NBA players tend to be overwhelmed by their sudden rise in net worth and spend like it's not even their money, while taking on more debt at the same time. A lot of them end up going broke after their career ends. This is what it means to have their self worth defined by their consumption, and to have expensive hobbies.
Getting wealthy is not the problem, staying wealthy is. Rich is not wealth, 1m not invested wisely will become $1 again soon enough.
To whoever reading this , never stop chasing your dreams you can do it . Keep pressing and thriving you will make it ! Consistency is the key to achieve your goals
Bitcoin trading is just like any other business but in this case more sophisticated and advanced .
Investment put you ahead in life , is like buying a day off you don't have to work again , invest now and secure your future .
Making profitable trades isnt as hard as you think, I took the right steps as a beginner by investing with a reliable brokerge where all my trades are being handled by financial expert.
Crypto investment has really changed my financially status positively, I got my first house the year I started investing and today network is over £1.2m😊
Delightful😁 i dont know who need to hear this but saving money wont make you a millionaire investing will, some take out so money and invest, but invest wisely
I always thought Buffet is frugal but he still lives. Buffets no.1 goal was always a good life not just being rich, I think.
he is supposed to be YOLO, he aint got long time
How would he Yolo? He is basically a couch potato
To be honest, I think his primary goal that he would never admit is his score card. Both as being an investor, and his place in the top net worth individuals in the world. This would explain why he's so frugal, because spending would damage his legacy/score card by the time he dies. He wants to always be regarded as the most successful investor in history, and to secure this title, he wants his score card to be as high as possible.
I think it's more about balance. If you make being frugal as a general habit, along with saving and investing a large proportion of your income, you end up with significant investments toward retirement as a consequence.
Plus, once you get used to living that way, it doesn't bother you to be frugal. In fact, it bothers you not to be.
Simple example: housing. You can waste a TON of money on having a fancy big house and filling it with fancy things, living in a fancy area, etc.
Another example: cars. You don't need real fancy cars with all sorts of options. Even basic cars now have a LOT of stuff in them for comfort, entertainment, etc. Being older helps give perspective on this. Now if I buy a base car, it has MORE nice stuff on it than any car I ever had. Also, keeping a car longer and not making lots of car payments is GREAT for cash flow.
Between just being frugal on housing and cars, I saved a TON of money over my career and was able to retire at age 48. I just steadily invested (and reinvested the returns) from all the money I saved on housing and cars. I didn't keep detailed budgets, etc -- I just didn't waste money.
I DID have a set monthly "fun budget" to spend on stuff I liked, like eating out, computer games, etc. so I didn't feel deprived or bored -- but I stuck to that.
The book "The Millionaire Next Door", written in the early 90's, is a really great guidebook for the principle of living frugally, without being crazy about it.
Example: For me, the part about not needing a super detailed budget if you just "create an artificial environment of scarcity, was huge. After I put away money every month for my IRA, 401-K, employer stock plan, money I socked away into mutual funds, paid estimated taxes, etc. there was only so much left, and I was living within that. So artificial scarcity, which I hadn't really consciously thought about in those terms.
Habits matter. Starting ASAP and letting your savings accumulate and grow through investments matters. Investing in efficient stock index funds with low fees (like with Vanguard) is automatically tax efficient, as you generally ONLY pay taxes on the small annual dividends (if you don't trade -- I haven't traded mine for well over 30 years -- I just reinvest the dividends and let it grow with the market). No complexity, stress, worry, or high taxes.
Finally, keeping your eye on the big picture matters most. If you have your overall savings plan under good control (paying yourself first), then you don't need to fret the small details and be miserly -- just stop spending when you've spent what you have set aside for short term spending.
GLTA.
Such a lovely video. I would love to hear more from you on the effect of inflation eating away from the compounded returns. I feel that's one critical factor that we often handwave away.
Well, it would only be for a “short” time, if you look at it historically thus not making it a huge problem, if we’re assuming you’ll be investing throughout your entire life
rg1283: It's ugly in high inflation decades, but over the LONG term in the US, it's not that big a deal. A long term inflation rate over several decades of roughly 3.5 percent pales in the face of a nominal (not inflation adjusted) total stock market return of about 10 percent, or a real (inflation adjusted) return of about 7 percent.
And it's not like you can easily predict inflation, time inflation, etc. And if you chase inflation hedges AFTER they've risen a lot (like gold), that gets ugly when inflation returns to normal.
I was obsessed with inflation for decades, growing up (as a teen) through the 70's, but really, stocks take care of that in the US IF you keep your long term perspective and keep right on buying index funds, month after month, and don't try to time things.
Naturally, people who sell various inflation hedges like gold will try to scare you into buying what they sell....
Always enjoy your videos! Super concise and informative!
Thankss~~~~
All I do is investing 75% of my income and powerlifting. Thats life for me and its great.
Gains ftw!
errr food costs i invest 100pc
I'm likely similar but the damn fuel costs are eating me atm. But replace powerlifting with buying unique but bot expensive watches. I got stuff from the USSR, east Germany, Switzerland, west Germany, USA, Japan, all different odd stuff. Right down to special editions only given to certain USSR military veterans NOT originally sold on the open market.
Great video, Buffett is the perfect example of how to be a … human.. it was never about the money. Buffett remains an investment hero of mine and not necessarily because of his success or net worth but moreso because of his frugality and his understanding that true wealth is from within, 🙏🏼
He doesn't have a good life outside of his job.
He has a sedentary lifestyle with no real hobbies.
You do not want his life, except his money.
@@ThisIsGoogle mcdonalds for breakfast is a pretty bad start 😂 the dude is pretty old tho
Buffett is a greedy old miser that doesn't care about anything except money. The reason he spends so little on things most people enjoy is so he can have more money. There is no stopping... he wants all the money. Sure he's a great investor but to me I'd rather have happy life experiences and make memories with people I love then to have a life that revolves around money.
Dude he's a fraud and it's obvious, if he really ate mcdonalds and drank coke everyday he would have died years ago. His frugality and other "habits" is just for his role as a spokesperson for his investments.
Imagine this, the guy made 100 dollars from Buffet back in the days invested that 100 dollars in Buffet.
Thankfully my hobby has always been investing, I don't really enjoy splurging on unnecessary things ,albeit sometimes. But I do keep it in check and not to overspend my budget!
Informative as heck thanks
By starting young, you let time do all the heavy lifting.
I agree! You let time grow your money, without doing any hard labor on it. I hope everyone can have the same mindset that you have and realize how investing can help us financially stable in the future.
I always appreciate your videos!
Question sir , is it possible to get daily-updated readings of the indicator i.e. 3-year earnings yield you have should us in this Vedio ? If so from where ?
I find the data at Multpl.com, but unfortunately you have to create this indicator yourself by combining the earnings data and pricing data. There's something called the "Shiller PE Ratio" on that website too though, which shows you the same thing but with 10 years of earnings averaged.
How does one compound in stock market? Did you use dividend or capital gain to repurchase same stock or invest in another?
The richer you are the more you have left for others to spend, there really is no point being mega billionaire rich ,it’s a vicious cycle you spend your life being frugal to accumulate vast sums of money to be rich beyond your wildest dreams but too old to enjoy it!
Your life is now you have to experience it when you can and enjoy the sports cars the holidays the food and stop worrying about what a 100 dollars will make you in 50 years! A balanced plan is the best plan.
I agree with what you're saying, but I believe the only reason Buffet is a billionaire is because he has a passion for what he does. Im sure even in his 40s he had more than enough money for generations to live off of. Easily 4 decades ago he could have left the company but he's probably lived as long as he has because investing is his purpose in life. Imagine doing someone you love every day for your entire life!
Balance is definitely key why live life if you can't enjoy it, but it's also important to come up with a game plan to enjoy life later on and not to struggle financially
I have been following your channel for some months now but this vid made me hit that notificatipn button. Keep up the good work, you are an inspiring force!
Always think about investing as 'is there a good chance I will gain more in the long term than I might lose in the short term'. This does not have to be about money per se. I invested in courses, which may not have helped me gain promotion in my job, but helped my confidence and made me a more rounded character. I also believe it improved my thinking and thus my investment choices. So now I have more freedom because all life's big bills (Mortgage especially) are long gone.
Yes, you are not really losing money when you have invested it for your self - career and character growth. Having a financial investment, though, can really help us in the long run, as it may either grow your money by stock profit, or you earn dividends on it.
Great video! But I didn't fully understand when you talked about the S&P 500 analysis
Great video ~ thank you !
thanks it was useful, even i like theme of video, the green color, plants, even gree money plants
Nice narrative... 👍
I used to oversave, to the point that it felt like I was poor. I'm all for saving as much as you can, but not to the point where you're miserable
I used to be like this as well. Nowadays I have no problem spending $70 instead of $30 on a good pair of running shoes or an extra $20 on my grocery bill so I can have a healthier meal and ultimately feel better as a person. Not only that, but even staying home when my friends wanted to go out and do something because I “didn’t have enough money” (at least, in my checking account). There definitely is a good balance to find.
Many people who ARE rich see it as a HOBBY. You shouldn't FEEL stressed by how cheap you are. But the millionaires I know are frugal like it's a game they enjoy. I often ysed to THINK like I was poor and instead of having a budget, that MENTALITY ITSELF would stop me overspending. It's funny how you can be in the supermarket going "that's enough, not this week, can we do without, I'm not paying that much" as in the back of your mind you know you're well into 5 figures in the bank. Then I found ebay and started enjoying myself a bit...
@@OffGridInvestork why are you so pressed?
Great one!
For more enquires contact on WhatsApp
Thank you for this great video
Me having bought a CAR as soon as I could afford it when I stated working at 23yo despite have a good enough 2nd hand car I had bought with summer jobs : FML! (Still got the same car 18 years later though!)
I don't think your car owes you anything after 18 years!
@@simplewelshman Yeah i'm going to see how many more years I can get out of it. Saving $$$$ as I go.
Very cool didnt know you're a power lifter!
Great video!
With all due respect... Buying McDs breakfast sandwiches and picking the cheaper one when the market is down it utterly ridiculous to the point of illness. But I respect this man greatly. Just saying
Feel free to keep on just saying because no one cares 😂😂
@@BG-wm2tw I totally understand his point and i agree with him. Whats the point of having billions of dollars if you don't enjoy it? balance is the key for me
@@Tareek23 it’s his money. He is doing what he wants with it. I don’t think he ever asked anyone how he should live.
@@BG-wm2tw I mean we aren't telling him what to do, but I think along with others that your 93 years old you can't take your money with you, and your one of the richest people in the world. It's more habit than anything at this point
@@connordutton674 how long have been in charge of monitoring peoples lives and habits and who appointed you??
If I was that rich, I would have just traveled to every country for sightseeing. Other than that, nothing much worthwhile doing. Eat okay, roof over head, creative hobby, good relationships with people is all we need.
The first line would guarantee you WOULDN'T BE rich.... your mind instead would be saying "why would I blow that much money to see another country full of malls or deserts".
@@OffGridInvestor because malls and desserts does not equal beauty of land, culture and experience. Which is worth more than gold.
Very frugal if they want to compound process to grow you their wealth as fast as possible
Real estate has gone up 15X since 1971 in Oregon. Silver has gone up about 15X since 1971. Gold has gone up 44X since 1971. We have had more inflation from 1996-2021 than we did from 1971- 1996. Most people are unaware of this because the news media has downplayed inflation..
Vim pelo "Um pouco melhor".
Ainda não sei falar o idioma mas comecei ontem o curso e espero daqui a 3 meses já começar a pelo menos entender pelo contexto.
Cool! I do the same with French and it has improved my language skills tremendously! Continue assim!
Whatever!!
Nice video. Newly subscribed :)
On the car purchase - What was the % rate the person was earning? It looks like it would have to be 15.5% to reach the numbers they are showing. 95k at 30, 350K at 40, 890K at 50.
thanks
7:35 *accidentally buys lambo*
Yep the ego is what keeps us investors going. Living a poor life to have a rich portfolio. Undeniably diamond hands
he has personal driver, body guard.. he is not ordinary
just to be clear, $31,500 in 1958 is equivalent in purchasing power to about $298,178.56 today, an increase of $266,678.56 over 63 years.
How can it be equivalent and an increase at the same time?
@@jonathanwoo9829 he meant inflation growth
@@jonathanwoo9829 equivalent to 298k and growth (difference) of 267k. Those are two different numbers
one of the MAJOR differences is that back then - savings accounts were at 10%.Now,, yeah, not so much...
I just bought my first car. It's a staggering 5% of my liquid net worth. Hahaha felt good to not splurge knowing I can buy a few more of the said car if I want to.
Life lessons
went will the dip stop ?
Wise words! I can't agree more
Lol I don't spend anything I invest it all
The S&P 500 and NASDAQ are now relatively very expensive. A monthly chart with 10-period moving average line shows how excessively extended price is above that line. True the stock market trends up in the long-term, but there are also periods of significant mean regression. During the low of corrections, the S&P 500 and NASDAQ can trade down to near or even below the 50-period MA line on a monthly chart. It last happened in Dec, 2018, and March, 2020. Now is not the time to be heavily invested.
What would you propose instead? I don’t love the value in the equity market but I don’t know of anything that is much better.
Warren Buffett re-balances based on pure fundamentals. More cash and less stocks when markets become extended. March, 2020 was the biggest buying opportunity in the last 10 years. Counter-intuitive to most, but this was the time to sell everything and put into triple leveraged ETFs like SPXL and TQQQ. Based on historically monthly charts, the market dropped below the 50-period moving average line on a monthly line. Now we are in an opposite situation where S&P 500 and NASDAQ are still trading way extended above the 10-period moving average line on a monthly chart. Time to get off any margin, or leveraged ETFs. Still stay in stocks, but with reduced exposure. Market still trading below declining 50-day EMA line on daily chart. QQQ and SPY still trading *below* declining 200-hour EMA 1-hour chart. Seasonally, market tends to go up early November through to end of year. But end of year rally hasn't started yet.
The S&P 500 and NASDAQ short-term trend turned back up again on Oct 15th when the 10-day EMA line crossed back above the 21-day EMA line. They are now pointed up with price trading above the lines. I am still long the S&P 500 and NASDAQ. I react rather than predict to stock market trends.
THIS AGED WELL. most car companies even foreign ones are down over 45% in the last year.
Thank you
Great advice. Finding gratification in investing vs. In consuming non-essentials: genius.
Here's my personal, slightly uneducated view.
Not every hobby has to be expensive, and not every expense is negative.
Lets say someone spends $30 on a gym membership. And someone spends $30 a month on beer. Despite both costs being identical, the health cost of drinking alcohol vs the benefits (both mental, physical as well as social) of going to the gym are polar opposites. You could spend $3.17 in macdonalds, or buy a salad or cook some fish and veg for a similar price at home?
If your idea of fun is going to bars and nightclubs, you pay for alcohol and the experience. However there's something to be said for appreciating cheaper or more rewarding things in life.
In my country (UK), a night out in a club costs around $30-$40 (alcohol/food+entry). A flight to another country like...Spain? Costs around $40 with return.
When you focus on having expenses that benefit you financially, like investing, or benefit your health, like eating better. Sacrificing life in the city, for space in the countryside and suburbs. You end up with a more rounded lifestyle.
Is it easy? No. Does it require sacrifice? Yes. But there's levels between frugality and consumerism that benefit you, your family and your finances.
My Advice, if you've gotten this far, is to get a pen and paper, or the note app on your phone and write every single expense you have, then write your entire income/household income/investment income/dividends/capital appreciation on your property/money you have saved.
If the end number is a greater number of outgoings than income, then you know what needs to change. Moving to a cheaper area and commuting further, searching for remote work, maybe downsizing where you live, looking for work in a different area, buying a car that's cheaper to run, or looking at where your money goes can benefit you.
If you save $200 a month. You put that in a vanguard fund, you'll have over 12,000 saved up within 5 years, plus the gains from the stock market. which should average at around a gain of around $1,500-$2,000 profit
$14,000 could be a 7.5% downpayment on a $200,000 home. 12 different states have a median average house sale price of LESS than $200,000. Meaning it's entirely possible for you, to have your foot in the door within 5 years to owning your own home. If you can save $250 a month, or if your investments generate greater returns then you can either
1) Hit that downpayment quicker
2) Secure a lower interest rate (meaning you can save more when you secure the mortgage).
3) Get a more expensive home
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I know that for some people, saving $250 a month sounds insane. However to put it into perspective. $250 a month is $3,000 a year. There's a couple ways to be able to secure quicker savings.
1) renting a room in a house.
- yes it sucks, but renting a room as opposed to a house or apartment can seriously lower your monthly expenses and can help massively with splitting bill costs.
2) shared ownership with family.
- if you're seriously struggling, then team up, whether it's with your siblings/parents/spouse/cousins, splitting the ownership of a home can allow you to combine your incomes and save up together, if you can save up $125 and "Person 2" can save up $125 a month, you can secure a downpayment and split the mortgage, this should be seen as a stepping stone to help you save up for a second home which you fully own eventually, as home ownership is typically much more affordable than renting and you can use the equity of the home towards getting another home
otherwise you can live with family can massively cut your rental costs down (my advise is to pay double the cost for utilities as "rent" or a third of the total rent/mortgage, whichever feels best.
3) Work 2 jobs
- Sucks, easy to get burned out, but an extra $100-$200 a week means you could save $800 a month, this can cut down your time needed to save from 5 years down to 2.5-3 years. It'll also alleviate some other costs and help you pay off debt (this should not be a full time solution as you'll get burned out quickly)
I managed to save $15,000 in 2 years by house sharing/splitting living costs/using cheaper public transport in the city that I live (my commute cost was around $30-40 a week) and not drinking alcohol/smoking/taking drugs.
For fun I'd practise doing hobbies that aren't as cost heavy, like drawing/art, hiking/walking, playing video games (specifically older games from the PS2 era) and treating food as more of a social thing.
I'm moving to a cheaper place (over 120 miles away from my hometown) with my wife where the rent is $700ish a month and cost of living is around 10% cheaper, whilst my monthly income is around $2,000 after tax, I work remotely ($30,000 P/A) and can save $300-400 a month if I stick to my discipline and in 2 years I plan on buying a home for $250,000-$300,000, the monthly cost will be around $1,000 a month but by splitting the mortgage with my wife, it'll be closer to $600 (I pay proportionate to my income as opposed to 50/50).
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My advice for people is this, in short. Saving/Investing is important, but frugality to the point of suffering will harm you. Cutting living costs and replacing a hobby for a cheaper hobby can help you and with home ownership. You can leverage your home ownership to buy rental properties/second homes/commercial land to rent, but you cannot leverage your rent to do the same things.
Thank you for reading this.
I know this was commented months ago but thanks for sharing! I’m 18 and plan on reaching financial freedom in my early 30s. Awesome to see others with similar goals
@@tylerwaymire7709 That's great to hear. I think even just having a good mentality around finances is important and to save proportionaly to your income is great, too many people live lives they can't afford/stack credit or buy a 4 bedroom home for 2 people when a 2 bedroom home would be just as effective and reduce costs for both utilities and mortgage (obviously depends on location).
Saving in your 20s is great, by the time you're in your mid 30s - 40s you'l have a home and enough saved to be able to ensure a good quality of life for you and your family. Your job title/position doesn't matter, the focus should be getting full time work to ensure you have healthcare coverage and can be prepared for unexpected costs.
As interest rates rise in the near future, we can expect house prices to fall, hopefully you'll have funds to capitalise on that within the next couple years, your first home does not have to be a dream home but an asset is an asset, a well built home in an area with consistent/growing population will ALWAYS have buyers, check stats for the areas you think of buying, decent GDP, low crime and growing population is always a good sign especially if unemployment is going down/remaining the same percentage as population increases.
@@trashbank6148 Yeah, I see many people living paycheck to paycheck including people in my family. I hope you’re right and it crashes, I’m located in California so things are quite pricy here but I plan on having at least 20k for a down payment for a fixer upper house when the market crashes. I am a handyman so fixing it shouldn’t be to hard and hopefully much less expensive. I currently invest/save over 60% of my annual income but I just started working full time so I don’t have much invested/saved. Thank you brother for your encouragement And I wish you the best of luck with your financial journey
Amazing page
Thankss~~~~
I also subscribed as well
0:14 Now that's an expensive breakfast, if I've ever seen one. Might be because I make my own breakfast at home, but wow that's expensive. I could probably eat for a day or two with that kind of money.
I wouldnt confuse frugality with stealth wealth, where the rules are the following:
Spend money on
1) things that will secure your income and generate safety
2) makes your life easier, creates comfort
3) fulfill your passion
MEANWHILE
Do NOT buy things that
- you dont enjoy
- risk the former list
Yes... renting or buying a property that cost more than what your household earns is a thing too...
Upkeeping a car when public trasport or even cycling is cheaper and faster is pointless, or... chose a job in heavy traffic city center when there is a better commuting oppurtunity outside skirt...
Thanks!
Thankss~~~~
In 1950-1960 31,500 inflation adjusted would be about 360k-400k in 2022.
If you are thinking to be ready and start a business, you will never be ready, unless you start now.... while doing your business you can learn and get ready ! a fellow creator.....
👍👍
Thankss~~~~
I am kinda late on this, however I have always had a bit different view on stuff.
First of all, the only reason I care to invest is to have money and abilities in the future to do what I want.
Second I am a car guy, so one of those stuff that I want is a nice and fancy sports car.
Obviously I cannot afford that now (well I can, but that would mean spending literally everything I have + loans), but I can afford a cheaper version.
The question this video raises is how low should I go? Obviously a car is a great choice since it saves me time. I could go with a Yaris and have 0 enjoyment out of it which would cost me a tenth of my income,
effectively forgoing my hobby, or go with an old but fast Mercedes which gives me a lot of enjoyment but costs me a fifth of my income per month.
Of course I can save that money and turn it into lambo 10 years down the line, but would it be worth the 10 years wait?
I guess the right answer is in plannings for what you need and when you need it, then saving for it.
Buy and drive relatively cheap car that goes up in value
I’d consider using your free cashflow number over gross income. After all taxes, life expense, groceries, needy girlfriends, everything that detracts from that gross number. The why is most important.
If gross income is 100k, after tax and deductions we have 75k. Subtract rent, groceries, clothes, leisure and fun.
We now have 50k left over on an unreasonably generous estimate.
If you buy a used M3 for 50k, you’ll spend the ENTIRE year working to pay for that car. It will actually be more, because of excessive insurance and high maintenance. If financed, significantly longer. Unless income is particularly low; I believe there is never a reason to finance a vehicle, this conventional societal wisdom is nonsense.
Approximately 1/4 of our entire working life will be spent earning to pay taxes on our earned income. This is a big part of the why to investing. It is scalable infinitely, where our income is not. The implication of this over time is almost incomprehensible to our linear thought and why generational wealth is so often destroyed. Every third generation the trust fund baby needs a new McLaran or Bugatti every few years.
It sounds like you have the advantage of significant time. Those who don’t understand interest, pay it.
Something to think on for anyone that actually read my nonsense. I used to want a Porsche, now I want more income. I can afford the Porsche, but I’m perfectly content with my POS jeep.
But FOR RELIABILITY. You obviously NEVER EVER owned an older Mercedes-Benz. They're bloody NIGHTMARES of repairs that will guarantee you NEVER INVEST A DOLLAR and BMWs are far worse! You need to actually WATCH car repair channels like I did when I was considering starting a car wrecking business. And you'll see what I mean. Trust me, get a hobby in watches or SOMETHING else because cars and the car hobby are MONEY PITS. I know people that have blown 6 figures on cars before age 30.
@@OffGridInvestor Actually I have. I have had CLS 500 from 2006, CLS 55 from 2006 and S600 from 2006.
The CLS 55 is the best car I have ever driven, and I will buy it again.
Because I keep a tight list of what I have purchased I can tell you this:
I spent 1k euro on the CLS 500 for about a year. After that I sold it and got CLS 55.
I spent around 5k euro, including new rims and new tires. The reason I spent 5k is because I got it under market value, but it needed repairs.
I bough it for 11k euros and I did around 3k in repairs I knew were needed. The median market value for them were 13-15k.
However, another car crashed in me and I had to scrap the car. The insurance paid me 15k euro.
The S600 was a nice car, but was an overkill - I should not have bought it. I lost around 10k euro on that car after I sold it.
You just have to know your stuff when buying a car. Even that 10k euro loss, summed with other expenses such as taxes and insurance, would total to around 15k for 4 years of cars.
If I bought a new Toyota 4 years ago at around 40k euro, I would have lost around 20-25k till now just in car value. The insurance and maintenance, as well as the leasing taxes(for example you have to repair the car at mechanics the leasing company tells you to, which usually are more expensive) and interest it would go more than 30k.
And at the end of the day I’d drive a Toyota.
Not a 500hp luxury sedan.
It’s just that I love cars, sometimes I work on them myself, and always research and read a lot about the model I like. So more or less I know how to fix everything relatively quickly and cheaply.
I save 32% for I am young but I invest only 12%of which 10% goes to stock market small cap and 2% goes to eth.
Personally i'd put that 10% into Eth and 2% in the stock market. Or avoid the stock market all together and put it into precious metals.
Another great video mate, very wise advice from Buffett, this should be taught in school.
A 31,500 house from 60 years ago is quite a bit of money now.
Yea. Well it isn't too bad looking at the size of it
Je suis nouveau dans la cryptographie et j'ai du mal à bien utiliser ces stratégies. Où puis-je trouver un courtier légitime ? qui gérera mon compte et m'apprendra également à trader avant qu'il n'augmente
J'adore son éthique de travail, j'échange avec Retta Amber jusqu'à ce jour. Je suis passé de 2 000 euros à 9 310 euros en seulement quelques semaines d'application de sa méthode grâce à elle
Travailler sous sa direction a élevé mon statut commercial à un niveau professionnel en moins d'un mois
@Janeth Catherine Comment puis-je la contacter s'il vous plaît ?
@Janeth Catherine Merci
Yes!! Another Warren Video😀😀😀😀😀😀
But he had saved all the money, that he did not managed to enjoy them.
I guess the tips should be he had managed or lower the expectation in life.
Jesus bot at least copy the channel's name with weird spacing
(context: bot account named Admin... spamming the usual wapp junk - comment now deleted)
I would imagine being as successful as him is quite satisfying. Being completely free from monetary stimulants is not a 'low expectation' in life. You got it backwards.
Great!
Thanks~~~~< for watching_and don't forget••• to hit the like>watsap
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Why does @Financial Wisdom have almost identical videos to yours, but is a newer channel? is it you, or is he copying you?
We are not related in any way, so you can make your own conclusions, haha.
@@TheSwedishInvestor Ah, yes...I understand now :)
This is the Swedish Investor bringing you the best tips and tools for achieveing the financial freedom through stock market Investing.
Thank You so Much Sir..👍
I drive a beater car that I got for 2K few years ago.
And most of my income goes towards investments.
I can say that its been working out for me so far.
Same. Was driving 3k car for years. Love the compounding effect!
Yes. I spend more but keep wearing cars out due to high mileage. But I never buy new. Never financed a car once either.
That Dale Carnegie course will make Buffett $ 291 Billion in time
I find it satisfying imagining the Swedish investor as a buff powerlifter making informative youtube videos in his cute little apartment.
Thank You 🇮🇳❤️
The $6.7M was probably almost entirely written off for taxes. Apparently almost all private jets used for work related purposes are written off.
Business expense (which it is), not a write off!
@@raheelakhtar7 do a lot of businesses invest in airplanes in your country?
@@BG-wm2tw corporate jets are a legitimate business expense. I live in USA. Yea, most top companies have corporate jets. What’s your point?
He eats McDonald's and buys boomer stocks like Coca Cola. He's not as brilliant as everyone thinks he is.
@@raheelakhtar7 why are you here?
I pay what i must pay monthly. The house. Gas water electric.. grocery’s. Taxes.. insurance . The rest of the income i save.
It looks boring . And it is. But nowadays i’m happy that i did/do that… Oh yes i have a car! But when i buy a car i drive it until the doors fall out. And when i want something i save money for it. If i not have enough i wont buy it. Never take loans never use creditcards.
Aim to keep more than you spend and you will surely reach the top
Well... If you spend 99% of what you make it will take forever
Well I have a different perspective to this. And I'm not making much money, and I don't have that much debt, but honestly life is a time-line. I want to enjoy the time now, even if it means spending. Why? Because later you marry, probably at some point kids and not everybody's hobby should and can be money making, so you want to invest into all of that rather than save and bring unable to do because your health doesn't allow it or you can't because you have children. I don't know, maybe some people didn't need to save when they were with their parents or could enjoy traveling to locations far away - unfortunately I haven't had that, so I'm trying to enjoy my young years without saving at my max potential rate...
Smartest thing to drop: Stop going to bars and if you can, just stop drinking altogether.
How do I start investing
Am from Nigeria
Expensive hobbies. You mean my German car addiction. Ooops
Breakfast at home .65 cents of oatmeal and .15 for a pour over 2 cups of coffee. .80 cents total.
That sounds awful 🤮🤮
Hey you, you are amazing! ❤
What is swedish about being an investor ?
Hey buddy,
I would like to contact you. Can you please share more details how do I do that.
@The Swedish lnvestor this is a scam btw don't fall for it
@@randombanana640 I am not a scammer but I genuinely wanted to reach out and speak with owner of this channel.
@@VishalThe101 no i mean the swedish investor above
@@randombanana640
Stop misleading people
Hey man! You can reach me at the email address in the "about" page on this channel 👍
@ 3:58 he makes light humour about spending 2 or 3 cents in every dollar he makes, which also could mean spend 2% - 3% and investing the rest.
I think it does
one good trade by mike
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How do i invest without a broker. Anyone???
I am 35 here and just bought a 19k euro car. Well...
5-10 educational books on a topic of achieving financial freedom, investing, sources of income and healthy relationships with money? Thanks for any recommendations 🤙
I love your channel's content.
I've recommended it to all my friends, except my Finnish friend, for fear he might stop being my friend if I do
Haha, what's up with your Finnish friend? He doesn't like us Swedes? 😢
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It's impossible to get a $3.75 breakfast today with money flooded everywhere.
Taco Bell. Where you can still get gas for $1.99. 🌶🥵💨
That McMuffin needs to be adjusted for inflation
Me, owning a horse, to Warren Buffett: you guys know nothing about real life!
I love cars...so I'm f@&ked...still keeping my 25 years old reliable car...but god it feels so depressing to keep doing what I should instead of what I would love to do...get a 1M Coupe or an Alfa Romeo 4C!hahah
I think when you're this rich it's time to buy some nice stuff for yourself. There's just no reason in the world I can think of not to use a buy once cry once mindset when buying things. Something like never eating at McDonalds again would be at the top of my list.
It's the consumer mindset that "buys nice stuff" not the hardcore investor / frugal mindset. This is what is so funny in the comments section. A bunch of people who you CAN TELL won't be rich BY their exact consumerist mindset. Most millionaires I know tend to know the price of things to the dollar and really need to buy themselves new clothes because the current ones are worn out or don't fit. 9 times out of 10, millionaires dress like crap in clothes that need throwing out. ABSOLUTELY NOT like people think. The people who OTHERS ASSUME are millionaires are actually CHOKING in debt and can't miss a weeks pay.
@@OffGridInvestor If you're good at running numbers you'll realize it's not going to matter. You don't need to be hardcore you need to be consistent with a plan. Buying a few nice things isn't a yearly Ferrari or all high end designer goods. Maybe if you haven't hit 100k invested yet it's time to keep the throttle pressed all the way down.
I'm 82 - how much should i save?
Let’s see… one foot in the grave and other on a banana peel… hmmmm….. well, I’d say zero 😁😁
It’s just his philosophy and nothing to do with frugality!
Why did Berks Hathaway buy a private jet?