I watched this video years ago right out of high school. Tip #6, about having an emergency fund, has helped immensely. Everyone in my family has called me crazy, yelling at me to spend more money for the "family," but I always told them that I need to maintain some savings, or we could fall into major trouble. At times they were very aggressive attempting to force me to dump my savings to buy a new dvd player, or a down payment for a new car, as my sister did, but I refused. Recently, our land lord gave a notice requiring that we move out, as she is selling the property. Guess what? They had no money, and could not even afford to rent a moving truck. It was my savings that got us out, and it was even my savings which provided for a down payment on a house to give us a low interest rate. They still fail to admit that I was right for pinching every penny, but now I have a greater reason to continue using simple financial common sense. Money is a tool, and all tools need to be treated with respect.
Tr1llobite if your family failed to see what you have done,then their ungrateful. In my life I've learned that sometimes you have to let family go as well as anyone else because they can and will hender you. good thing you think for yourself bro.
First thing: do NOT go to college unless you are focused on a specific major that gets you a high paying job. Most majors outside STEM (science, tech, engineering and math, which includes finance, statistics and actuarial) are worthless. If you want to learn History, pick up a book, especially an old book, and teach yourself, do not go to college for indoctrination. For most people college is a horrible waste of time, money and a risk of your morals.
I was a history major and then went for aa Master's in education. That . was many years ago. I retired as director one year ago, and although I was never a millionaire I always did well.
People think I'm crazy for not buying a new car. I drive a 2001 Hyundai Accent. But it's mine and it's paid for. My goal is to create residual income from my two books and to create jobs for my children. Love this vid
1. 0:44 new car 2. 2:01 home 3. 3:18 doo-dads 4. 4:11 brand-name clothes 5. 5:07 refinancing 6. 5:48 save money 7. 6:21 eating out 8. 6:53 going out too much 9. 7:23 loaning money out 10 8:09 have a budget
FunkMan53 Fine if you don't do all of the above and end up rich at 50 what the heck is the point of having millions in back at 50? Eating out, shopping, clothes, new car gives you happiness.
Great pointers my friend. I own a business my self. A lot of the people I hire are older than me. All I hear every day is I'm over qualified for this and that. Well I also work a few part times to keep my cash flow going. I consider my self over qualified for those jobs. I do them anyway to avoid taking some BS loan. I'm not broke but however I'm building something and yes that does keep me from buying tickets to see my favorite NFL team! If I can make money instead... "if you want to succeed as much as you want to breathe"
Brian Perez Great attitude. Success is there for those who REALLY WANT IT. The nearly people of this world. Are those who talk the talk without walking the walk.
Dude, Instead of talking so much about new fancy cars or homes just pause for a minute and realise there's just ONE true reason why the American poor stay poor. It's just because they can't handle their (own or borrowed) money properly. Money is something that should be respected, not wasted away like trash.
+B.J. Raco It must be wasted like trash, or economy would not work cuz rich make their money with the stupidity of the middle class which are begging for their iphones.
Ryder Spearmann If humans would be reasonable and would stop buying things they dont need to survive, the quote of the rich would drop to 95%, but that is what people dont understand, money MUST stay in circulation and and should not be increased by interest, which is generating money out of nothing.
Why is going back,to the stone age "reasonable"???? What do you gain, by throwing your life away... just in order to make sure that people with more than you... have less? What kind of an ass, is so focused on BRINGING DOWN other people, that they are willing to hurt themselves? You are insane. Money in circulation matters not. TRADE matters. Trade with money, or trade with something else... no real difference, except that money is easier to steal or print. Why do you hate people that have more material wealth than you?
This guy knows what he's talking about.Another hint,set up a savings plan that comes out of your check before you see it and then forget it.Even if it only a little it will mount up with time.
yeah but for a lot of ppl BOOM a medical emergency happens....medical and school debt are there for a reason...he is using personal extrapolation to dictate what should be
it is worth buying a new car if you do your homework. it depends on what make and model you buy. I bought a Toyota Tacoma in 07 for 35,000. in 2014 it is still worth 23,000. I paid off this truck in 5 years instead of the 7 years worth of payment. college on the other hand is a business. you learn from experience not from a bs book in college they made you pay 200 bucks for. finally, live within your means. I am 50 and am proud to say I do not owe any credit card debt.
Medicare took all of my Cola and rents are high. I am retired, so it is teach online to stay in my apartment, or drop Medicare, and move to a less expensive and safer country. I am 75, and have been retired for almost 6 years. I do have a small savings, but if I continue to live my pension will not support my life here. You are so correct. I invested in non begging people during my working day, had a home, condos, cars etc. I do have an emergency fund and not any debts. I cook at home, and shop online for groceries. You are correct. I can given much money to family and friends. I cannot do it being retired, but I still help my daughter, and she will be 38 in March, not any children, a d teaches around the world. I will not give her any more money.
AWESOME video! I couldn't agree with you more of what you have shared here. If people would only use common sense in managing their finances, many would be living a stress-free life. If we just start recognizing between what we "need" and what we "want". We all know what we want, but what we need is all that matters, really!! Great share, thank you! :)
Ok Mo here is the deal. If people had their own money they could spend their own money. I bought a plasma televison this year and I paid cash for it. I stimulated the economy but with my money and I was not left in debt. If people did it this way the economy would remain stimulated and people would not be in debt.
+PRLostGalaxy2014 Who says you need to choose? Most of what is is advocating is live cheep. But saving all that money do not help you earn more. It is balance. The ratio is more important. As is where the money comes from.
Lol. Wait until you can't get to work because your used car "that someone else ran into the ground and traded in because it is about to need repairs" car broke down. I buy new for warranty and reliability. Sure it will depreciate, but reliability is important to me. Plus when you add up the time and costs of replacing parts you often aren't coming out ahead. It really depends on your responsibilities and support system.
Disagree. There’s a difference between buying used and buying stupid. I bought my car in 2009, it was a2010 model . It had 10k miles on it, was three months old, and traded into the dealership. It still had the 5 year warranty and was practically brand new. It cost me 20k instead of 27k over 20% off the normal price. I saved 7k because someone else got to drive my car for the first three months. Considering that car value depreciates the most rapidly when its new its almost a no brainer. Let someone else eat that initial depreciation, and you’ll be getting a better value over the life of the vehicle. 9 Years later and I’ve put about $3000 of maintenance into, and its still going strong.
Guys you better watch your money.invest in land.money use to be back up with Gold and sliver.now it is back up by a bunch of old men .signing a note.God is a good buy.sometimes it is hard to cash in.
I learned most this in a book called "The Richest man in Babylon" and again more in Rich Dad, Poor Dad and Suzie Orman then Dave Ramsey... Mann forget the haters ! Your Cool bald headed but cool... I have been following many of your same Money Principles, its got me on a good path... Don't forget the difference between Budgeting and Investing ! One will grow your money and the other protects it !
The Annual Recipes book from that allrecipes website is awesome, made my momma jealous when she came to visit. Sound advise to stop throwing away money.
I have no money as I have too much compassion for my own good. I rescue dogs and horses which need food and care. I live off grid, building my own house with tyres and dirt, so I wont need much money at all. I own an old car which gets me about.. I will never walk past an animal in need, and every day I look at them, I smile and see how fulfilled my life is. the view I have is sea and mountains..what else do I want? nothing.
I agree re-financing a home for something you don't need isn't the best decision there is to make. However if our loan reaches a maturity with our bank. Meaning the time to re-pay that loan is over. The borrower has no other choice to re-finance if they want to keep living in that home by borrowing the $ from another bank to take over the loan.
@mohammedabshaun - absolutely correct. If you didn't know who Paul McCartney was and saw him on the street you'd never know he was worth almost a Billion dollars. He dresses in simple clothes, no bling, eats at neighborhood restaurants and drives regular cars. People have a conception of the "rich" as Paris Hilton. If you hang with some very wealthy people who have worked very hard for it, they are relatively reserved in lifestyle.
@belmonciara lol I think you need to read the Millionaire Next Door, because what you just described is a real Millionaire. They don't dress fancy, they shop at thrift stores and they live in middle class neighborhoods, they drive ford taurus', they clip coupons, wow thanks for the compliment. You have labeled me as a Millionare Next Door. It's the fake ones that buy all of the materialistic junk, oh that must be you, lol.
Well I was referring to people who want to take out a loan to save on interest. Most people take out a 30 year loan and incrue a lot of interest over those years and they only make the minimum payment. People like me and you, who are in the minority of America will only try to pay a house as soon as possible. I can tell by your speech you are one of the few who are doing things correctly. Keep it up.
@duanescot my friend you will get on track, being that you lost your job you need for other things,Start a lawn mower service. A mobile Car Wash, provide services for people who need them. Clean houses, just get some cash, humble yourself and get moving. Don't wait on the money to come to you. I like country guys because they are already frugal people.
@leathertanner So I can see already I am wasting my time with you. You made this statement "I'm not going to chase money around when my folks give me all the money I want." I don't know hold old are you but if you are over 21 your freeloading, and you and I have different mindsets.
Tiger you are completly correct. Not only can you learn a new skill of cooking but you have more option if you make it yourself. It brings a family together and good conversation. Please check more of my videos and please comment.
@leathertanner my friend I reading a book now where a guy was a multi millionaire at the age of 30. You are following and outdated system. You need to buy the book, the millionaire fast lane.
This is good, practical advice. The goal should be to invest some so it can grow and fund retirement. But If my family didn't loan me any money I would never have started my business so I'm glad they didn't follow that one. But in the end it is good for them since they now share in the profit.
I disagree with him saying a car is a bad investment. Yes you don't have to buy a new car, but plenty of people get this wrong. A car is a good investment if you factor in the fact it pays for itself by getting you to work especially if you have no alternate public transportation. Also you can drive uber and make the car pay for itself
I would actually recommend people initially get a yurt. Low cost, LOW maintenance, and a great place to think. Save money, and great for renting if you're in the right area as it's a nice open space with lots of room and something unique.
200k in the bank is a waste. invest that shit. NOT day trading, thats bullshit. You want triple A Bonds and blue chip stocks and/or ETFs. If the money is not making 5%+ per year for you, its not working for you. I guarantee you 200k in the best savings account in the country will not break 2% per year.
This is a video on how to save money not how to b wealthy. U can very well be wealthy and have a new car buy a house eat out etc. give real advice and don't be a hater on people who have nice things
His advice is obviously for people that are not already wealthy. But even people with high paying jobs can end up broke. Spending every cent they make on a fancy lifestyle, recession hit and all of a sudden the former wall street banker is getting his house foreclosed on. Not everyone will end up rich, but making smart decisions can make a poor person less poor, a keep a rich person rich. A rich person with no common sense may very well end up poor.
You only have one life to live when you die you can't take your money with you do what makes you happy with your own money besides wasn't just got on the extreme cheapskates
Calling a car an investment is generally not true since it generally doesn't generate a profit - read Rich Dad, Poor Dad - however, most of this is great information. Having a vision or dream of what you are saving the money for might make it more acceptable. People who spend every dime and live from paycheck to paycheck usually don't have a goal to shoot for. Even just not having to be worried sick when a problem comes up is one good reason to live beneath your means.
New car is a bad idea if you hold it 10 years, let it go to shit, then sell it for 1k. You gotta either keep it mint, sell it on while it still has value. or be a shade tree mechanic and keep it 25+ years with impeccable maintenance record for max reliability. Then you get the best of both worlds, you are first owner so you know the vehicle has never been treated bad. and you have 15-20 years of no car payment without massive repair bills. While we are on the topic of cars. what is your view on leasing? IMO its far worse than buying, because you do not gain ownership after years of payments. But on the flip side, you dont really have to worry about maintence issues that come with ownership. But its still not as good an option as buying new to keep till you run the wheels off it, or buying a good used car and running the wheels off it.
If you had the cash at 22 too buy a home (Full payment) Would you do it, Not having 700 a month rent payments seems like a great investment. (I am inheriting 20 grand)
I was going to bought a used car for 20.000 including taxes. Good thing my credit was really good i end it up with a new car and O miles... for the same amount of money. 2013 nissan
Sir, I refinanced my property to buy a rental property. Was that dumb? May I suggest to our brothers and sisters to get married and not to have kids left and right. That will catch up to ya.
love this, agree with it, exactly why i would not get my own flat because id have to work full-time in order to sustain it, plus i already have a car.. id never have money for myself! haha not an option. wish my family would see that its all a trap!!
solid advice and informative. let me ask you why do you recomend paying your house off first instead of investing the money you save? I've heard both have goods and bads but I want your opinion.
You don't need 10 reasons/causes to explain poverty. It's your Mentality and Attitude. Look closely at the big groups of Chinese from China who waltz into Beverly Hills Louis Vuitton and buy 4-5 items per person and pay by CASH!. Even the front door has to be closed and locked for security!. WHY? Get to know those people well, SEE how they work, and if you can change your mentality to theirs, 100% guaranteed your poverty problems will be solved. But of course, you don't want to change
good for you. one of my car's has 284,000. however if I get enough money I will buy a newer car or lease a new one. for hire car service a new car is an investment. it will last longer , not have as many problems, make me late for work....etc. however I agree for most poor people learn to work on your own stuff & buy something used at the auto auction for cash. buy here pay here do the same and sell the car for 5 times more than they paid , after doing nothing to the car but a battery.
The idea of an investment is that it appreciates and returns you more money than you initially put in. Gold & Silver are good investments, money/currency steadily loses value as the Fed. Continues to print paper that also is no longer backed by Gold or Silver. Gold & Silver are real money, it doesn't rot or die like a banana or a cow used during the bartering system days. Gold & Silver are rare precious metals that appreciate in value and are real money. Check out > watch?v=Vyx8zgPtvFo.
Well...you know the 95% poor 5% rich story right? Well...If you really think about it, the 5% NEED the other 95% of people to work for them, its that simple, so that bullshit about how EVERYBODY can be rich is totally false and if you think that way you are not using common sense. There wont be a time where everyone is equal and rich in the same time... And as "motivators" say : business is a key to sucess- well it maybe , but you need someone to work for you eventually - poor people.
WOW - You wouldn't even give money to your relatives? You would rather give to strangers and let them go to multi-billion profit creaming organisations? What not just go to a lawyer and make a formal loan arrangement with them? Yes. family will take advantage of your relationship - and that can ruin relationships long term. If you know none of them would lend to you, then YES! don't lend to them either.
@kmcl11 NO these books werer written by banks and give metaphors to illustrate the advantages of finacial security through using your skills, knowledge, saving, onvesting, learning about money investments and paying off debts. The Richest MAn Is very good, I came to it through Rich Dad Poop Dad. RDPD though doesn't account for your personality type and management skills - which are essential that you look into for financial success. Your Plan must fit your personality.
Abdul, I don't mean to contradict you, but I do all the things you said, except writing down a budget, and I'm still poor. I don't mind admitting. A psychiatric institution has me on a drug that pretty much makes me incapable of working. It's all bogus. There's no problem with me, and my mother, brother and father know it, but they still play along as if there is. I want to work, but I've tried and gotten fired. Severe problems sleeping and fatigue comes with this drug...and I have to use the bathroom frequently. I pray to God about this, and I know you're a Muslim, and God will change things. I'm sure. Then things will change. It's good to know what to do when things change. You give good advice. GOOD VIDEO. GOOD POINTS. Most people don't do what you say, but my father was very conservative with money and I am too. I know keeping it is the first thing people need to do! Salaam alekum--My friend and roommate was Muslim.
brand new car yes . i can agree. i perfer used but used cars have there pro's and con's .pfft hell with the doo dads. only thing i need is a cell phone . pfft hell with the fancy clothes . who the hell buys 200 dollar jordans . some of my best buys were at thrift stores. i think ppl now a days are way into status
People in USA buy things which they can't have while people in China save 50% of their salary.What do we have? China is main creditor to USA. Read Farid Zakaria - Post American World: "So the average American household now has 13 credit cards, 40 percent of which have an outstanding balance. Debt has gone from $700 billion in 1974 to $14 trillion now."
I agree with the most part, but you have to take care your family. I have two brothers and my mom living outside the united states, as a student, I also work full time and I'm I proud to help them by sending them at least five hundreds dollars a month..Family come first!
@belmonciara - Yes - You need to make your background look more convincing. Image often says more than words - and people respond to what the see over what they are told. That's why many believ those in big houses have lots of money, when they may be struggling inside.
@belmonciara Actually i know a billionaire and if you walked past him in the mall (and you might have) you wouldn't have guessed he had a dollar over $10,000, you never know! Anyone can be a critic, not everyone can have vision.
some do and they get fixed for nothing. would rather have a new car anyday it's not as likely to ever make me late for work or an important money making opportunity.
Wise advise, unfortunately in this country, too many people are so obsessed with class jealousy and appearing to be rich via credit, your points fall on deaf ears for many
too many people are concerned about how others view them which causes them to make irrational financial decisions and buy something they cannot afford.
hahah i agree with u 1 million% i don't have stylls at all i just wear what i get and i it looks more better and last more long then the brand new ones
This guy totally misses the mark on refinancing. Refinancing SAVES you money. Most people are smart enough to refi into lower interest rates: $300,000 loan at 7.25 would have a mortgage payment of $2046. If it was paid down to $250,000 over 5 years and then refi'd at 5.25 the mortgage would drop to $1380. If it was paid down further to $200,000 over the next 5 years and refi'd at 3.25 the payment would be $870.00. That's how you end up paying less than rent.
If you lose your job, you may be forced to sell. If house prices have gone down, a house bought for 100,000 might be worth 85,000. You sell your home, but you still owe 15,000. Buying assets when you have debt is NOT normally a good move. Normally, income from the asset will be outweighed by the percentage interest you are paying for the mortgage. If your asset pays a return of 10%, your mortgage might be 15%. So, you are better off paying the mortgage off.
I'm not sure what you were trying to say when you are forced to sell, you will be in a position where you are un-able to cover the mortgage by selling the home. I'm not saying his advice is bad, it's just a poor and middle class mentality. I find it to be risky. What happens when people lose their job, the will have $0 income coming in. Buy assets first, liabilities second. A home is not an asset even though your bank tells you it is.
How is it more of a risk to have a 100% mortgage compared to an 80% mortgage? The risk comes into the monthly payments. That is determined on how much expensive their primary residence is. People need to financially educate themselves so that they don't have to "work" for money their entire life. They need to learn how to use leverage of Other Peoples Money (OPM) and Other Peoples Time (OPT) by buying cash-flowing assets.
I have to disagree, which is ok. I would never recommend anyone to manage their own property. Hire a property manager for 8-10% that way you have more time and less stress so that you can just concentrate on the numbers, not the property management. If you buy an investment property for 100k with 20% down that cash flows 400/month, you can get all of your cash back that you put into it in less than five years. After you get your cash back, you will still have the property, cash-flow, andequity
