These Middle Class Money Traps Are Guaranteed To Keep You Broke Forever

[@THEECATGUY]

Want to turn $50 into $500? Use those $50 to fill up your gas tank and go to work!

[@July.4.1776]

I agree that you must invest while paying down debt. 👍

[@timshipp1145]

It’s mostly about choices: Are you willing to work 40+ hours a week? Yes or No Are you willing to sacrifice spending for saving? Yes or No Are you willing to live within your means? Yes or No Most people fail on 2 out of 3. Self discipline is in short supply. Good luck.

[@heroldjaras9909]

Are you willing to work 40+ hours a week? No Are you willing to sacrifice spending for saving? Yes Are you willing to live within your means? Yes

[@noypi21stcentury]

finance literacy and marriage should be teach in school early childhood

[@schunkelperser1794]

Oh man this is so true

[@ChrisInvests]

Glad you think so!

[@VictorSanchezVS13]

I'm trying, but sometimes the wife isn't on board. All used cars, opened brokerage accounts for my kids, buying a rental home, working long hours to make me money. "I liked you more when you younger. " great, when I was making 20k a year and had no ambition...

[@MRkriegs]

Tell her u liked her more when she was younger too 😁

[@VictorSanchezVS13]

@@MRkriegs hell yeah. I'll let you know how it goes

[@Tayy]

Start planning an off ramp.

[@Donkeyearsa]

Its extremely unlikely that most people will be able to retire in the old way where you completely stop working. At best people will have a working retirement as the cost of retirement is just to costly. The suggestions here would make things go far more smoothly.

[@Lolatyou332]

@7:20 --- This should really be nuanced... Paying off debt is effectively giving you an immediate guaranteed ROI... If the interest rate is over 7% the best possible 'investment' is to pay off that debt, you cannot achieve a risk free 7% ROI on any investments.

[@KatyMccullars]

Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?

[@mark75700]

Remember that investing in the market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.

[@sandra65823]

With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and mutual funds...

[@KatyMccullars]

Pls who is this coach that guides you? I’m in dire need of one....

[@sandra65823]

I started out with an FA named Stephanie Kopp Meeks Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.

[@KatyMccullars]

I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call..

[@jakeandsarahhealthnuts3299]

1. borrowing money- keeps you behind, and you pay interest. 2. Having no idea how much you spend. 3. Buying more liabilities then assets. 4. Trying to look rich. It's an expensive money trap. 5. Focus on saving and not expanding- you can only save so much at the end of the day. 6. Over spending on a home. 7. choosing the wrong partner- divorce is very costly. 8. Waiting until you are debt free to invest. (Thank you Chris I disagree with Dave Ramsey on this) (I think if you are 35 of older you need to invest today if you have not started) In my opinion if you are 40 or older you need to max out a Roth IRA if you have not started yet even if it takes longer to pay off debt.

[@m_rod9562]

For the last one, it really depends. If its high interest rate stuff like CCs, loans, or even auto loans; id say paying that off first is a good idea.

[@brianmccain8818]

I'm with you too on #8. I've heard Ramsey tell people to liquidate $100k+ in investments to pay off a mortgage. That's just too extreme for me. In my case, it would be to stop 401k, sell the truck I just got, replace it with the mythical $2000 car, empty savings so that can start chipping away at the mortgage 1 year earlier. Yeah just starting to feel in charge of my finances so not putting myself through a meat grinder to save a couple of years

[@Jumpman67]

I intentionally don’t try to look rich. I wear regular clothes, drive an old car and save money.

[@YourFrienjamin]

You're less of a target for pickpockets and fair-weather friends.

[@KManAbout]

I don't even have a car. It's cheaper to Uber than purchase a car. Also I have an eletric bike for medium distance trips. Saved tens of thousands over the years.

[@KManAbout]

I work remote so I don't need to commute. Live in a low income area with family in the country. Cheap as fuck. Save 85% of my income a year

[@manfredmann2766]

Same here

[@r8alvar]

I wasted the first 10-15 years of my working life. However I got my shit together and became completely debt free (house included) at 37 1/2. Now I am maxing out 401k and investing an extra 15k into etf's.

[@howellwong11]

You have join a very big club. We all go through the same stages of life, at least most of us.

[@Lolatyou332]

I won't be debt free until my early 40s more than likely. (31 now). My mortgage is only 3%. I'm hoping to hit like 1M in investment assets at 40 then just do the minimum (Max Roth IRA, employer match 401k) and then pay off any debts I have.

[@darkmediatracks]

That's why behavior is the biggest component of finance. For example, the average man can't sustain being actually single for x amount of time, naturally and for bragging rights.

[@monocle8868]

Focusing on savings, not increasing income. This is the hardest part for most people. Others are just logic! The most stupid one: Having kids.

[@bradleyvanzile1111]

Got student loans paid off and car paid off working on mortgage

[@jswan312]

I hate car culture. Cars as status symbols rather than a means of transportation is peak idiocy.

[@Lolatyou332]

Depends, I personally just like to drive faster cars as it's an experience rather than just a status symbol to me. The only thing I hate is 'luxury' cars or expensive trucks / SUVs.. I'd never buy a luxury sedan or SUV. Camry / RAV4 is all you'd ever need and those are under 30k. You should only spend more when you can pay cash and if it's a sports car it should be less than 10% of your net worth.

[@TheFirstRealChewy]

We got caught in all of these traps, now we are trying to escape. The biggest thing is spending money on things you don't need.

[@ciscoshibler3214]

I agree! Once i was able to recognize these money traps i made giant strides financially. It's easier than you think one you have a plan

[@toddaustin2198]

Great video! The only one I'm guilty of is your final point. We finally paid off all our non-mortgage debt and saved up our full 6 months of expenses Emergency Fund. Now at 55 1/2 I'm finally beginning to contribute to and max out our Retirement Accounts for the first time in nearly 20 years. We should have our home paid off in another 4 to 5 years as well. We're still planning to achieve a Millionaire Net Worth though.

[@domdrty]

Having a large credit card debt and buying new cars every few years was killing me until my mid-30s. I finally got smart, and things are worlds better.

[@ThePantherproof]

Trying to look rich? One of the few disadvantages of being rich is more people asking you for money. Who needs that?

[@Lolatyou332]

If you never give money then they don't ask. Don't want to be surrounded by people who want to be given handouts. I personally hate when people even try to give me gifts. I'd rather earn everything myself.

[@LilT2o00]

I can't even escape to escape the low class. I'd love to be middle class lmao where are the lower class/poverty advice videos

[@ciscoshibler3214]

Work 6 jobs until you get there... you have a phone, so you obviously aren't that poor.....😂

[@Krashoan]

The point in the video about focus on increasing income over decreasing expenses becomes more and more relevant the less you currently make (assuming you spend at or less than what you make). Being frugal can help to some degree in almost any situation, but it is limited in benefit. Also, credit card and other high interest debt is not an “expense” but rather something to eliminate as quickly as possible. You may not have had a better option but to take that debt on at the time, but it still has to go. After that, some amount of emergency fund is crucial to avoiding bad debt situations if you don’t have much to your name.

[@LilT2o00]

@@ciscoshibler3214 It doesn't even have service. I'm wifi only. I haven't had phone service since 2010; with the same phone I've had since 2010

[@LilT2o00]

@@Krashoan My only expenses really are rent and utilities. I just make min wage. I don't have a car(I ride a bicycle). I don't have phone service (wifi only), been hit by a car on my bike, told the ambulance no thanks, etc. Still paycheck to paycheck lol

[@Krashoan]

@@LilT2o00if you don’t mind me asking, how much is rent, how much is min wage where you are, were you permanently injured by the crash?

[@brucestiles6477]

Thank you. When you didn't post a video last Sunday, I missed it.

[@ChrisInvests]

Thank you, Bruce!

[@JoseFlores-xh5cj]

6:56 Really bro? Divorce causes financial hardship to BOTH parties? You might want to do some research on that statement

[@lilchef2930]

HAHA ik all of this and I’m only 18, I will be rich and retired by 30🎉

[@ChrisInvests]

Great 👍

[@lilchef2930]

@@ChrisInvests great video

[@landonc5355]

Better find some skills

[@harrycee656]

The right partner is huge in wealth building. The wrong par may be a wealth leech, sometimes making divorce a better option for wealth.

[@ChrisInvests]

Absolutely 💯

[@johnnycatR58]

Losing half of your money is better than losing all your money

[@codykoon5520]

I’m shocked you didn’t talk about a 15 year fixed rate mortgage instead of a 30 year mortgage. It ties in well with you point about buying too much house, but a 30 year mortgage will cost you twice as much by the time you pay it off

[@epistax4]

Conversely I've paid off my house too quickly. Interest rates were so low I would have been better off investing the difference in monthly payments. I did a fixed 10, wish I did a fixed 20. Still it's nice to have the house almost completely paid off right now

[@codykoon5520]

@@epistax4 I’ve never heard someone say that before. I suppose if/when rates drop again(I understand this may take 10 or 15 years), you can take out another mortgage to leverage your house.

[@epistax4]

@@codykoon5520 that's true. It sounds a little different when you consider something already in your possession.

[@domdrty]

I would argue against a 15yr homeloan for those that are young. That extra money that was put towards the house will earn more in the long term if invested.

[@codykoon5520]

@@domdrty you end up paying 2 or 3 times in interest. You’ll be able to invest more once your house is paid off early

[@ClaytonLonetree-xv9yz]

You lost me at "In the words of Robert Kiyosaki"

[@Powder148]

I drive a 2004 Subaru with 260k miles when I can afford 100 of the same car

[@TheFirstRealChewy]

It gets the job done. My car is approaching 15 years old this fall. I have two repairs I need to make, but otherwise it's running fine. Plus the repairs will cost far less than buying a new car.

[@Supafly1906]

Don't agree on the debt one. It depends on the interest rate. Interest rates on debt compound the exact same way as investments. Except, debt is usually guaranteed and investments are not. So putting $100 against 9% debt guarantees ill save $9 a year until the debt is paid off (ignoring compounding). Putting $100 in the market could make me more or it could make me less. It's a risk. Getting rid of the debt is a much better plan. If you wait, you might have a lot saved, but you'll probably have to spend it on paying off debt. (Plus investments are taxed so you'd have to average 12% returns just to pay off 9% debt.

[@thraknar3363]

I think it's one of those areas where debt is an outlier. 90+% of the time debt needs to be erased. Credit Card Debt with 20-30%APR is a no brainier. Medical debt that cant afford and can be skirted with small monthly payments, may be an exception. Even when it comes to a house, I see making extra payments towards the principle as a form of both paying debts and investment. Less interest. More equity. A 0% APR for 18 month card could be an excellent exception, so long as when it comes due it is paid in full. These things could help give you the edge, but also lead to many pitfalls.

[@djpuplex]

100% of divorces start with a marriage.

[@ChrisInvests]

😬

[@TheFirstRealChewy]

That last one. What you want to do is pay off your debts only as fast as you need to have it paid off and invest the rest. Even for the person who got to 50 and just finished paying off their debt, they are in a good position. They might not have much saved for retirement, but they now have lower expenses. This means that any income they receive will go a far way and they may have more options to make the income they need to cover their expenses. Remember that a lot of people spend money on things they don't really need. How much of the decorations in your house are necessary for survival?

[@jonathanpritchard6464]

While most of this is decent advice in a vacuum where personal choice is the only factor influencing socio-economic status, it fails to acknowledge the systemic issues driving most of these "choices": predatory lending, immoral and disgusting advertising practices conflating primal human needs and emotions with stupid products, many of the rich being rich not through hard work but simply through generational wealth, and a lack of social safety nets allowing even "fiscally responsible" people to be screwed over by things outside of their control to name a few.

[@ltsFears]

And what would be your solution to this?

[@SarahlovesSerge]

I completely agree with you, but I don't think he's implied that you fell in those money traps without anyone/anything having pushed you. It takes discipline not to let them :)

[@MRkriegs]

Personal accountability

[@kelvinreyes64]

The best and the most basic financial advice is 1. Live within your means 2. Invest atleast 15% 3. Be generous

[@pensacola321]

Getting in or staying in the "middle class" is not bad for many people. I guess it beats the lower class.

[@musemellow]

Middle class people are just poor people with expensive liabilities.

[@paulinejackson5861]

can you please also discuss the impact of the gender pay gap towards women who are trying to save money? It is a huge challenge for women that is overlooked by society

[@MRkriegs]

If women get paid less to do the same work as men. Why would companies hire men? 😎🤐🤯

[@Nickot33n1988]

💰💰

[@MvpAlexis]

FIRST

[@leonadams1053]

All goodness here. 👍👍

[@pensacola321]

Stop saying "most people". Often that is not true.

[@niklaswallin5436]

ok

[@pensacola321]

Divorce is expensive. But worth it. ,🤑🛵