Why People Stay Broke...

Подписаться 3,8 тыс.

Просмотров 2,2 тыс.

50% 1

Lifestyle inflation keeps you living paycheck to paycheck, and it's the main reason the middle class stays poor despite earning more. This video explores how to avoide lifestyle inflation and how to break free from the cycle of financial struggle, preventing them from building wealth and achieving true financial independence. Learn how to identify and combat this silent killer of financial freedom, and discover strategies to avoid it. Don't let lifestyle inflation keep you from reaching your financial goals!
✅ SUBSCRIBE SUBSCRIBE SUBSCRIBE ✅
/ @mikesfinancialedge
Video Links:
1) How To Become A Millionaire On A Middle-Class Salary Using 401Ks
• How To Become A Millio...
2) How to Get Ahead in Life & Get Out of the Rat Race: Master Your Present Self vs Future Self • How to Get Ahead in Li...
3) Habits Keeping You Poor: Break These 8 Habits
• Habits Keeping You Poo...
#lifestylechange #financialsuccess #budgeting
Timestamps:
0:00 Introduction
0:52 What Is Lifestyle Creep
1:43 The 4% Rule
2:28 Dangers of Lifestyle
4:34 How To Avoid Lifestyle Inflation
Disclaimer: I am not a financial advisor. This video, and the ideas presented in it, are for educational and entertainment purposes only and should not be construed as financial or legal advice. It is imperative that you conduct your own research and, if needed, get professional advice suited to your unique circumstances. I am merely sharing my passion for personal finance, stock market investing, other types of investing, and overall money management to help people achieve their financial goals.

Опубликовано:

7 июл 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 52

@MikesFinancialEdge 14 дней назад

Hello Everyone - I would sure appreciate hearing your comments on this topic! Thanks

@virajfaria3832 14 дней назад

The explanation of an additional $100 monthly expense requiring additional $30,000 in retirement balance is quite shocking

@MikesFinancialEdge 13 дней назад

Yes, as we get used to spending more and increasing our lifestyle, it can significantly raise what's needed for retirement. Unless someone is willing to dial back and downsize their life in retirement, which is not always a pleasant option, they will need to plan accordingly. The connection and balance between our present and future selves is always with us, whether we acknowledge it or not. Lifestyle inflation can easily creep into our lives, so we need to ensure that saving and investing for our future is the top priority in our budget.

@rolandosouffrain7957 10 дней назад

These are thing we all should have learned in school. By the time the average person learns this they are used to doing the wrong thing 😢

@MikesFinancialEdge 10 дней назад

I believe the increasing time people spend on social media is exacerbating these issues. Do you think the responsibility of teaching the concepts and ideas in the video falls more on schools, or should it primarily come from parenting?

@rolandosouffrain7957 10 дней назад

@MikesFinancialEdge parents? Lol that's a joke 😂🤣 it's the parents spending all the money 💰 a lot of people don't make good parents and are bad with money. A financial advisor should be teaching in school as soon as the kids can count. They should not have math class but financial classes

@MikesFinancialEdge 10 дней назад

HaHa, I guess I know where you stand on most parents.😉 I completely agree that many adults/parents certainly have poor spending habits and are not practicing sound financial habits themselves, like saving for retirement. I do believe it would be easy to incorporate many investment and compounding ideas into math classes to a greater extent than they are at this point. It seems most schools that do offer a personal finance class in high school just purchase the packaged Dave Ramsey series marketed to them and put anyone in charge of it. Over the years, I have talked with many students from those classes, and they don't come out knowing anything about how to invest or purchase larger items like a home. They remember to never borrow money, that all credit cards are bad, and they talk about budgeting, but that's about it. Anyway, thank you for the comment and discussion. I'm sure there are solutions, but implementing them is usually more difficult than it should be.

@user-ir1dw2cq3m 14 дней назад

Fantastic topic that more people need to be aware of! People in our society need to hear this message.

@MikesFinancialEdge 14 дней назад

Thanks for the comment. It really is something that is so often overlooked and creeps into people's lives without them realizing it.

@hortensiasoto4389 14 дней назад

Thanks for always reminding us about the impact of spending intentionally vs impulsively.

@MikesFinancialEdge 14 дней назад

Thanks for checking out the video and leaving a comment!🙂

@oneday268 13 дней назад

Ive felt this too, especially as my family has grown.

@MikesFinancialEdge 13 дней назад

I think everyone feels it to varying degrees! Very few people are immune to it. 🙂 It's just a matter of keeping it in check and maintaining a healthy financial balance in our lives. Thank you for checking out the video and leaving a comment.

@user-ir1dw2cq3m 12 дней назад

Came back to watch this one again and sending it to a few family members that need to think about these ideas! Good topic and so important in today's society.

@MikesFinancialEdge 12 дней назад

Oh great! Glad to hear you liked the video and felt it was worth sharing. Thank you.

@dgray60 10 дней назад

Brilliant video and very wise advice.

@MikesFinancialEdge 10 дней назад

Thank you so much for the comment. I'm glad you liked the video and I do appreciate the feedback!

@nakitabanana 13 дней назад

Thank you for your examples and clear teachings. You’re providing excellent value to the cluttered RU-vid finance space.

@MikesFinancialEdge 12 дней назад

Thank you so much for the comment. It's tough breaking through all that clutter, but knowing the videos are appreciated is a big help. Thanks for checking the video out. It's nice to hear you liked it.

@Citygirlinthesticks 13 дней назад

That 50% rule of extra money is a good idea!

@MikesFinancialEdge 13 дней назад

If someone could stick to that, it would make a huge difference in their life down the road! Glad you liked it. Thanks for checking out the video and leaving a comment!

@KPad87 12 дней назад

I need to stop buying ammo . That is making me broke

@MikesFinancialEdge 11 дней назад

HaHa, yes that can be areal problem for some people.🙂 I actually know of a couple people that have 200K to 300K rounds in their basement.

@eddieslittlestack7919 11 дней назад

Same. I too like precious metals, copper, lead & brass!

@MikesFinancialEdge 10 дней назад

I have some precious metals in the form of gold and silver.

@Niafunn 10 дней назад

Set yourself up to save as a percentage of your income. That way when a raise, overtime, bonus comes, you know what you bring home is yours.

@MikesFinancialEdge 10 дней назад

Yes, hopefully people make it automatic right out of their paycheck every month. Pay yourself first and get it invested. Thanks for checking out the video and leaving a comment.

@corysmith6770 12 дней назад

Right as always. Great, concise, simple explanations. Thanks Mike!

@MikesFinancialEdge 12 дней назад

Glad you liked it! Thanks for watching and leaving a comment.

@ronaldcambridge3126 5 дней назад

Much of what's espoused here is all about being financially literate, which is evidently lacking when it comes to being "broke".

@MikesFinancialEdge 4 дня назад

Yes, financial literacy is a big issue in our society, and combining that with the need many feel to keep up with others certainly creates many problems for people. The social media explosion in recent years doesn't help either. Anyway, thanks for checking out the video and for your comment.

@kristenxmarie00 14 дней назад

I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.

@MikesFinancialEdge 14 дней назад

If someone is interested in cryptocurrencies, they should keep the total allocation to no more than 2-5% of their portfolio. It is a highly speculative asset class.

@alecd3345 13 дней назад

Amazing video!!!!

@MikesFinancialEdge 13 дней назад

Thank you! I appreciate you checking it out and leaving a comment. Happy to hear you felt it was worth your time.

@seanmoore7207 12 дней назад

Without watching the video, let me take it wild guess. The number one reason people are broke is because they consistently waste money on vehicles.

@MikesFinancialEdge 12 дней назад

Well, vehicles can be a real problem for people, but the video is about much more than that example.

@Downey32 14 дней назад

I'm favoured $130k every 4 weeks! I now have a good house and can afford anything and also support my family

@MikesFinancialEdge 14 дней назад

That sounds great, as that would make it roughly $1.69 million in a year. Is your monthly income from a salary? Anyway, congratulations. Life should be pretty comfortable.