Why Most People Are BROKE (And How NOT To Be) 

Everything You’re Hearing On the Housing Market is WRONG ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-dxj8Gn5vVak.html

I was a kid in the 50's, shoes were bought 2 sizes bigger, jeans 3 sizes rolled up cuffs, torn shirts sewed up worn to school ,eat what's in front of you, work hard ,study hard, shut up and save for a rainy day.

The amount of brand-new, high-end, financed $80,000 cars I see in front of modest homes in this country is shocking.

"If you find yourself in a hole, stop digging." ~Will Rogers

My parents taught me about money management. My mother was gifted at it. When me and my siblings borrowed money from her in our youth, she charged us 100% interest and kept the amount owed in a ledger! She said it was to teach us to never have to borrow money from anyone. She could really stretch a dollar to its max. She was my inspiration to get a business degree and it has served me quite well over the years. We were taught to never get anything that we couldn't pay for. I got a law degree and paid for it myself. I have a friend who owes more on her law school student loans today and we've been out of law school 28 years!! In my interview for law school, I was asked by a professor why I wanted to go to law school. I told him that it was my right as an American citizen to pursue any endeavor I choose AND I have cash money to pay for it. ACCEPTED! 😁

After returning from Ghana in 2002, I realized how wealthy I was, even as a "broke" college student. The opportunity to amass wealth in the U.S. is astonishing, yet people blow their money on useless things. It completely changed my mindset for what I wanted my life to look like, and what was valuable to me. Since then, even when I've been broke, I knew I could recover financially, simply by living in the Land of Opportunity and practicing wise money management. Great topic, Michael!

Great advice! “The things you own end up owning you.” Tyler Durden

I live as a Minimalist, and don't have many materialistic items, and drive a 21 year old truck with 220,000 miles, Just living a minimal simple life in Florida and don't need fancy new cars or mansions, but I also been single my whole life, no wife or kids, which can be a big expense. And No debt at least.

Back in 1966, when I was four years old, my parents had a bitter divorce, and my mother argued that she should have custody of us kids. My father asked how she would support three kids, and she replied, “I’ll get a job.” To which my father retorted, “who’d hire you?” At that time my father was an engineer working at GE in the Plastics division, the very same division Jack Welch came up through to eventually become CEO. Well, my mother did win custody, as was the norm in that era, and my father was ordered to pay $60 per week in child support ($20 per kid). In the years that followed, with just her high school diploma, my mother took all manner of jobs, anything she could get. She cleaned houses, sold Avon, worked in the office pool for Berkshire Life Insurance, decorated wedding cakes, hung wall paper, the list goes on. And then one day, in 1972, with her name in the files of Kelly Girl (the old name for Kelly Temporary Services) she got called up to fill in for a secretary who was going on maternity leave. A six week assignment, secretary to a technician, at GE Plastics Division. She reluctantly took the assignment, knowing she’d be passing my father in the hallways. But kids gotta eat. Six weeks goes by and the woman she was subbing for decides not to return, to stay home with her new child. They gave the job to my mom full time. Six months later her boss, the technician, gets a promotion. GE had a policy of hiring from within, and when they asked him who in the department should replace him in his technician role, he said, give the job to my secretary, she already knows it. And so they did, and saved money in the process when she refused to have a secretary of her own. Over the course of the next 9+ years she rose through the ranks, her and her high school diploma, to a marketing engineer role, a higher rank than my father, with more responsibility and more pay. She didn’t mind so much passing him in the hall anymore. And at ten years and a day, having shown him exactly who’d hire her, she took her partial pension and joined two other engineers to go off and start up a new company. Equality of opportunity allowed my mother to rise beyond anyone’s expectations at a time when women were seen as second-class citizens. And by her example she showed her three boys that women are fully equally capable to tackle any task or career in which they apply themselves. Oh, and she never asked for a cost of living raise to that, wholly inadequate, child support. That never entered her mind. So why tell this story? Because money was a daily concern in our household as I grew up. I learned every facet of how to save it, stretch it, grow it, and what to spend on and what to not spend on. All these years later, with just a high school diploma, I’m a multimillionaire. Thanks for leading the way, mom.

I so agree with everything you said, especially “you don’t have to be rich to be rich”. Health is I believe the most important asset you could ever have, and gratitude for all one has is so important , every day.💜

Instead of saying…”how can I afford that?” We should ask ourselves…”do I really need that?”

Perfect tutorial that I preach. My dad was always in debt and I did not like that feeling since I always saved for what I wanted. I started hanging around with our CFO, he was 8 years older than me with house and cottage paid for by age 44. He said secret to success is get rid of debt. Here I am near 60, own my home with almost a million in other assets and I have never had a 6 figure income. No debt is the secret to financial freedom. A big bonus I fix my own vehicles so I can avoid those large depreciating car payments and work on older used vehicles.

Learned some hard lessons being a poor kid. I told my daughters that even if you have five cents left by the time you're paid again you are ahead of the other 99% of people that go into debt for any reason. Get paid interst, don't pay interest.

Micheal, I'm an avid fan of yours. I am 69 years old,. retired nurse and everyday I feel grateful for what I have. I have a clean, comfortable home to live in, electricity, internet, food in the refrigerator and family. The rest is just icing on the cake. I have a fair income, know how to manage my money and am very happy to buy secondhand from facebook marketplace anything I want. No bad habits other than sugar. I live in a beautiful area and love to walk and hike in the parks which are free. I felt very connected with what you were trying to say. Best wishes to you, Michael

So true, Micheal! We have a lot to learn in America. Gratitude, modesty, and appreciation are among the lessons we need to master.

Just for the record. If you make 200k a year and still live paycheck to paycheck, you are broke as well.

My friend went to Law School he owes 280k, trying to get Biden to pay for it...oh I forgot that's you an me paying for it

Instead of saying “I have to goto work today” I’ve started saying “I get to goto work today” As cliche as it sounds, it works, it’s truly a blessing to have a job in todays climate.

You’re right about parents not teaching the better methods of finance..my parents were absolutely horrible with money and still are…in my late teens/early 20s, I also fell into that bad finance trap and didn’t learn about finances until I met my husband. He was my turning point and got me back on track. Now we own our house and cars free and clear.

Today I have zero debt. I live in a smaller condo that's paid in full, no car payments, no credit card payments, no loans, nothing. I no longer need to make big money to live comfortably. As we speak I am on my 4th vacation in the last year. I live humbly but completely stress free when it comes to finances. I'm 54 now and my only regret is not living debt free when I was younger.

Most people in soflo are broke AF!! Credit cards and leased cars and houses

I read Rich Dad Poor Dad in the late 1990s and it’s worked very well for me. We’ve made a lot of money and lived Under our means. We bought rental properties and stocks (started small). My sister threw lavish birthday parties for her kids and lived in a small house. It makes a difference over the long run. Keep in mind $1650 a month is almost 20k a year. In your 20s… Put that in the sp500 and forget about it. You’ll be a multimillionaire.

I know a guy who has been making $2,000 per week that just bought a $60K truck. Hasn’t received it yet. Just found out his contract ends the end of the month. I know a woman who made sure to get approved for a mortgage before her contract ends. Approved for over 400K. Someone else is about to lose her house, a house that is packed full of designer clothes and things that she HAD to have to the point where she can’t afford her house anymore. These are bright people who do foolish things because they want what they want when they want it.

About 10 years ago my husband and I decided to pay off all our debts and start saving. We now have over $200,000, 100% debt free and have a child. It’s all about saving your money! It’s actually fun to be frugal. I love thrift store shopping for the things I need, driving a used car that is paid for and teaching my child how to save. I wish I would have started living this way a long time ago.

Aargh! Not “Rich Dad, Poor Dad!” It’s gotta be the most overhyped and almost useless book on personal finance.

Everyone would benefit from listening to this video whether they are young or old, rich or poor. Thank you for sharing all your thoughts and wisdom!

Here is how to tell if you are rich or poor. Answer: can you not work for at least one year and live with everything you have right now (all financial obligations). The longer you can not work, the richer you are. Most people wouldn’t last 30 days without borrowing money. Most of us are broke, working for the banks 🏦

The most interesting thing about the US is how people there talk about car payments like it's a normal monthly expense. I didn't even know that financing a car was a thing until i was 25 years old. You saved for it and than you bought what you could afford with your savings. I had never heard of a car payment. Borrowing money is to buy a house.

The main issue is, most people live in debt just to keep up with the Joneses. Which is a terrible mindset to have. My own wife is this way (lucky that we have separate bank accounts). If you have lots of debts, you will ultimately own nothing and be left out.

Great discussion Michael. People need to hear what you're saying in this video. I just like a good book to read, a good movie to watch, great popcorn, and a nice clean and safe environment to relax and reflect. This is being in heaven to me. There are a lot of wonderful places to live outside gated communities, elite suburbs, and HOA prisons. There's more peace of mind in these place too!

You're right. Status keeps people drowning in debt. I was fortunate enough to fix my life in time. I stopped waiting for the federal government to pay off my student loan debt and did it myself. My car is old but runs perfectly. Now, I'm using the same five year plan I used to pay off my student loan debt to pay off my mortgage. I love being in this peaceful space.

Basic Financial education was taught in my high school in the early 90’s. Budgets and how to manage a small business. Home economics covered cooking and managing a household.

Hearing you speak reminds me that the best things in life are truly free. People love to overcomplicate their lives to impress others.

My father always said to me, "if you cannot buy cash", do not buy it, and I have done that since I was able to purchase my first home in Santa Monica CA in the 80's cash. I worked extremely hard, since I have not looked back and never been broke even after 2 divorces.

You are spot on as always. My generation,my kids and grandkids were never taught finances in school. The education system needs to start this in Grade School. Great videos!

This video was fun. Every point is so true. We are incredibly blessed. I am 66 and have worked all my life. Am I a millionaire? Nope, but my wife and I have everything we need. There is nothing anyone can come and take away from us. Does that mean I am rich? Yes!! Awesome to be free.

This is a great video. I have a clutter problem from buying stuff that I do not need right away or at all.

Your message is right on. It’s up to us to listen to what your saying. Your one of the first on you tube to speak so clearly about financial matters. Hope you do more on this topic as you travel on

Absolutely. No matter how much properly you have, if you don’t have peace of mind it’s not worth it. Mental pressure is one one of the reasons for Dementia or Altimers at early age. 🙏🏼

❤️being Grateful of what you have ❤️Simple life ❤️

Refrigerator going bad could be a big expense for a lot of people. A new basic fridge can be 1500 to 2500 dollars.

We all have everything we need and it's all free, we just can't see it right before our eyes. Thank you for this awesome walk and talk.

100% correct on all fronts! Can't add anything or say it better. Great video, love the topic of finances, esp everyday people!

Spot on, nailed it…

I literally have everything you mentioned at the end. Modest living. Take care of your health first. That's the most important thing.

Perfectly said! Live within your means, and be happy.

Number ONE rule: It's NOT how much you make. It's HOW YOU USE IT

Living 54 years in Miami I remember when today's 2M homes were 50K. Real estate used to be a bad investment until the 1980's when the government pushed it. The S and L blowup was the first bad result. It's good that you live here as you are one of the few new residents who makes sense. people like you thrive no matter whether the bubble is inflating or deflating As for businesses be careful when owning them jointly. I was involved in a couple and in the end didn't come out ahead. I don't play the lottery either. Would be better to throw money at Forex. I have said the same as you Americans are financially illiterate.

Thanks for confirming all my beliefs, your dropping some serious truth bombs , all direct hits on this One.

My wife and I are making about 200k living in a 60 year old dump with no central air. She drives a 12 year old Camry hybrid. I drive a 5 year old Civic. We are stacking our chips for retirement. Our 11 year old son has had a retirement account since he was 5 and a side hustle acting job. Our house payment is $1284 a month. We are 20 miles from Washington, DC.

It takes a certain amount of discipline. But you have to live below your means.

The monthly budget thing changed my life. It gave me the road map I needed to course correct my finances. Now my credit score is near 800 and I’m putting money away for a down payment and paid off a lot of debt strategically

401ks are great. The money goes in tax free during the years you make the most money. Employers tend to match what you put in which is basically free money and you’re forced to automatically save and not touch this money, unlike a savings account. Even if returns are moderate, over a 30 year + period, you can amass a nice nest egg.

Doctors have roughly 200k plus in student loans. I've heard so many doctors say that they wouldn't recommend becoming a doctor.

Another great video Michael. Great common sense points as usual. Keep them coming !

This is one of your greatest videos. Great job, Michael!

A big problem is wishful thinking. It can apply to how they manage new expenses they want to take on, where they're moving, a job change, and the like. There is this constant assumption that it will just work out because they WANT it to work out. Hope is one thing, but life will always throw unexpected setbacks and there are all kinds of raw deals that are made to look enticing. Like you said, there isn't financial preparation because they don't think it's necessary or don't even think into the future about what might come up. The world of business often preys on this human tendency.

Best video to date. Financial education is a vacuum in the US curriculum. Like the Rich Dad, Poor Dad approach. Like the Ramsey budgeting and save to buy approach. This line of critical thinking about money is helpful. Keep going.

So happy you made this video Human Brother! Thank You! 🙂

Well said Michael !!

One of biggies is vehicles. It's a depreciating asset in almost every case. I can never understand why someone goes out and every four or five years and buys a new car because they're bored with the car or truck. I've never understood leasing of a persons personal vehicle. You pay a down payment and make payments for three years yet after 36 months you hand the keys over and now you own nothing.

Blame it on schooling Never teach financial education And back then no internet Average people didn't have computer at home No smartphone back then Now it so easy to get information from internet People can educate themselves how to buy home How to invest etc

I agree with so much you said in this vid and thank you for sharing and supporting also my beliefs when it comes to money and success. The only thing I also would like to mention is that I’m originally from one of those third world countries and life is very ironic sometimes. I see people in third world countries way happier with their life with way less of what people here in America. I think that a lot has to do with the fact that they’re aren’t exposed to all these ideas of having the latest and greatest car or owning a house with so many rooms and a pool etc. they’re just very happy with covering the basics which is food, home/shelter and health. It’s all about expectations and also I think that ignorance in these cases is a bliss. Here in a America for good or bad we live in a very materialistic economy in which we are a lot of times judged based on the assets we have and not necessarily the ones we own. I own a Honda CR-v 2013 and I’m more than happy with my car but I’m happier because the car I reliable and most importantly I haven’t had a car payment in more than 9 years. I try to keep my lifestyle simple and make sure that I can afford something before buying it. I hate loosing sleep over money.

This is very true. I somehow lucked out on genetic wiring that made me natural with financial concepts. Then went on to get a bachelors degree in finance and everything I learned was basically just second nature for me. I definitely don’t blame the majority of the population that struggles with these sorts of things and perhaps don’t realize they should be seeking out information and learning. I agree it should be introduced into curriculum starting very young for our children.

Love it brother! How can I afford it was defo a game changer & yesss the poorest citizen on welfare in the US is richer than 80% of the population in the world! Lmk when you’re ready for that cerveza! Love your integrity!

People make more money in stock market when it goes down! Stock market isnt passive but it is less work...........I love stock market!

I read the wealthy barber when I was a kid. I remembered these 2 concepts, dollar cost average in the market. And I always lived below my means. It has paid off.

Much needed video, Michael, as people don't seem to realize what behavior is bankrupting them along with wanting to buy the latest technological gadget.

🎉🎉🎉🎉😮😮😮😮😮 I think that I may have mentioned this before…….. But it really upsets me to see expensive Cars 🚗 at apartment parking lots. Just doesn’t make sense to me. I have EVERYTHING I need and don’t remember the last thing I bought for myself. I’m working on paying off my credit cards and that’s the most important thing for me at this time. Thank you Michael for today’s video. Blessings my friend, Carlos ✝️🙏❤️😊❗️

Thank you, this was a good video. I also read Rich Dad and the sequel book. We are forced in life to take risk in order to try to keep pace with inflation, but most of those that teach us in school live a life of guarantees (pension, benefits, etc...). I always thought that if educators were forced to take risk and invest for their futures, they would have the understanding to teach that to their students.

Once again, You have out done yourself! Not only have you expanded from one point of view (property) you now have evolved. I think this is your 2nd best video, your best video was the last one! Keep up the good work. Honesty, true and reality!

Michael - Probably your best video. Unfortunately, as you said, messages like this are necessary due the the abysmal state of education in this country. Nice job!

I still drive my 1979 Trans Am in summer months & my 1992 Toronado Trofeo both black…both run like new. I never gave up on them and always maintained them. Went to automotive school and learned how to repair them too

Super luxury house. Super luxury car. Endless luxury food. Overpriced cell phones. The list goes on. When you borrow and spend, you will rapidly go broke.

The best thing I did was to read The Richest man of Babylon Rich Dad Poor Dad The Millionaire Next Door Think and Grow Rich The intelligent Investor These books should be mandatory to read in high school to avoid the disaster of society we have now. Thank God I was blessed with this knowledge. Financial education is the key to success. Michael Thank You for your content Great job

I have to say, this is one of the BEST videos you have ever done! Every point you made about the lack of financial education in schools is 100% correct! When I was in high school nothing was taught about money! Big mistake! I venture to say that many students who were forced to learn algebra never used it in our adult lives! A financial course about compound interest, investing, stocks vs bond, etc would have served us much better! I was blessed to get a job which allowed me to purchase a home! I finished my college education with help from my employer. As long as you passed the class they covered 100%! I know those options don’t exist today, sadly! I fell hook line and sinker for credit card debit! Sure, I can make the minimum payments! What a fool I was. I since have learned to never have credit card debt. I can not tell you how freeing it was to pay them off! Never again! Thank you for the wonderful advice and counsel! If it helps just one person, you made a positive impact! 👍🏻

Thank you for reminding me that I’m rich, compared to many other people in this world. 😊

Great content. We make 7x our expenses and live like minimalists and love the unburdened lifestyle.

Thank you brother. 🙏🏼 blessings. From Las Vegas.

Man, that was the book that changed my outlook in life 20yrs ago during my senior year in college. All those r true but the thing i remember most is "just because u invest doesnt mean your an investor, most people are just average so dont be average"

Go Michael!❤❤I am Rich. I’ve got God!❤❤❤ Preach Brother. This is a work d from God!!!!🙏🏾🙏🏾🙏🏾🙏🏾👍🏿👍🏿❤️

In my house when I was growing up, money discussions were taboo.

I have said for years that, if we added money management to the school curriculum at an early age, we would all live prosperously...assuming that is what a person wants. But most kids get absolutely NO education in managing money or how the economy works, but instead get their "learning" from listening to the 24/7 marketing on TV, radio, internet, magazines, billboards, etc. and trying to live up to the Joneses. It is totally heartbreaking...

Great advice! Being grounded and managing your budget will reward your future assets.💐

True happiness comes from within! Be like water my friend!

im always astonished to the lack of finance basics. its by design and i am heartbroken the amount of wealth that will be lost due to ignorance. my inner circle, most are millionaires on paper, but will probably wiped out in 6 months

That is so true!! It really doesn't matter how much money you make, what really matters is how much money you keep💫💙

Thank you Michael. Such a pleasure listening to the smart common sense things you speak about.

Most of your videos are walking and discussing housing issues. Are you wearing flip flops or casual shoes? Your topics are spot on. Most ppl is broke but yet their car is at the dine in restaurant. When in high school in the 60s, my school taught us finance and budgets. How to manage a check book, saving, and job interviews. Today, all has changed. My granddaughter can't get a job at 17 because her skills lack register management, the will to work, attitude, and cell phone use. Her interview, the cell kept ringing, texting, and no ambition to work.

Thanks for the positive video👍

22:11 I have that. Thank you for reminding me. I’m still grieving. I appreciate this video.

Thank you for some pragmatic suggestions about how to live within our means.

Got dupted to watch thinking it was todays show but it was from 9 months ago but it was the best one I've seen you make. Thanks Michael, Great ending. Being grateful daily is a must.

I grew up in low income housing and it took me till I was 26 to get out of debt. Since then I've always said the hardest dollar to make is the FIRST DOLLAR OUT OF DEBT (all of it) It's not easy trying to crawl up out of all the financial traps that society (big corps) set to suck all your money up.

I used to live in a 10,500 SQ ft house.....went to $50k property taxes EVERY year......now I live in a 2,000 square ft house, got rid of Ferrari's and got smarter .. I LAUGH at those with 30 yr mortgages, brand new cars, Uber Eats.....and they are flat broke🤪🤪🤪🤪🤪

So very true!! No financial planning in the educational system! Just a lot of useless information in most schools!

Phenomenal advise! Doing what the Government won’t do!

retired electrician..nearly 80..RE has made me very well off.. retirements are crap.. ss is one good monthly rental.. once borrowed .5 mil. been doing this for 30 yrs.. can work in nearly all trades.. ac and plumbing are the key ones.. lot of work, but rewarding in the end.

America prioritizes money in this way: 1) Fun and pleasure 2) Investing in the latest fad stocks 3) Necessities In reality, people will usually do better in this priority: 1) Necessities 2) Investments in quality stocks 3) Fun and pleasure

I totally goofed up my spending. I’m learning from people like your viewers and you.