What's Your Relationship With Money? | Rich Roll Podcast

This is an excerpt from RRP 534. Watch the full episode here 👉🏼bit.ly/richroll534A
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✌🏼🌱 - Rich
EPISODE 534 PODCAST
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[@user-qp6vg9ho8u]

I see money as a safety net and nothing more. I made the conscious decision to be an extreme minimalist focusing only on shelter, food, clothing and family. I’ve never been happier. Everything in life is borrowed. Ownership is a myth and a lie sold to us

[@shembeliever6095]

I come from a poor African country, my parents slaved away for us to grow up a relatively decent life with emphasis on education to save us; there were no cars, travels, holidays, mostly rice on the plate etc..so when I secured scholarships and started university and started making money teaching etc, I was so frugal and happy volunteering with farming tribal communities. However when I got married, moved country and didn't need to work because my husband's business brought in all the money we needed for my own kids grateful to God, I lost my roots and became enamoured with the lifestyle and the money, addicted to collecting things , sad to say. Now I've been trying to build myself up otherways and go back to my lost happy self and soul. Money and how you use it is really the thermostat of your soul.

[@tobiasbienasch4723]

Just want to copy what Jim Carrey once said: „I think everybody should get rich and famous and do everything they ever dreamed of so they can see that it's not the answer." All the Best, Tobi

[@robz.3225]

The Golden Handcuffs!! I wish I new back then to be a minimalist!

[@bobbalfour8971]

I went to rehab in 1986, It was suggested that I ask God for a positive attitude and a greatful heart every day. For the past 33 years I've asked and God delivers, I think if I prayed for fame & fortune each day I would have probably found it. I'm a billionaire in mind and heart, nothing pays better than gratitude,kindness and service to others. I see pain and sadness every day in the eyes of family and friends who chose fame & fortune. Always be humble and kind🙏

[@RichardBrubaker]

Taking another angle on this. It's important to consider how the relationship one has with money changes over time. Yes, the need to resist FOMO and materialism are important, however to ever use those concerns to hold back on generating long term security would be a mistake as well... and how much one makes (or spends) is only one angle of concern. Of greater concern, is how she is investing her money, and how can she ensure that her frugality (i.e. additional savings/ sacrificed) can be invested in a way where she can achieve long term returns that will give her the breathing room in her late 30s, 40s, and so forth. This is where I have seen "the" split among my peers, and it is where I plant a see for Ally to consider.

[@gardenboots7464]

Excellent call and discussion. Really relevant and helpful. Thank you.

[@wildmanmike100]

What is your purpose? This governs how you look at your career in finance. Option 1. Get a job related to your purpose. Is finance related to your purpose? You plan to acquire the mentors, skillset and credibility needed to become the person that live and breathes your purpose. What you'll find is this person will automaticaly attract the resources required from others. E.G if your purpose is to become a tennis player then you are better off practising and getting good. You gotta have faith that you can survive. Which could mean being frugal and working a few hours a week to eat and pay rent. You sacrifice because with this option time is more important than money. Doesn't matter what you do to survive your main focus is your purpose. Option 2. If you decide to work in finance then don't save up for something else. Focus on a career in finance, get a mortgage, pay your taxes, loans, pension, get married and retire. If you think you are going to work, get use to a lifestyle, rack up liabilities and quit to pursue your purpose. Sure you can but you will be exactly where you are right now but without the skills and experience to allocate your sizeable savings. You will probably lose your savings too. So in conclusion either forget your purpose and do finance or go for your dreams. But best is if your dream is related to finance and you can stay off the traps of mortagage, lifestyle and loans.

[@fathmariyadghan728]

Rich roll looks like an intellectual person...His visuals are kinda unique

[@stelter6286]

Great, positive!

[@FrocketGaming]

At the end of the day, you don't know if you're waking up tomorrow or even going to make it through today. Planning for the future is important but you should be mindful of death frequently so that you make decisions to live right now as well. I budget out for the future, should it come, but also set money and resources aside so I can enjoy the work I've done right now.

[@aiwi9498]

The caller Ally, said she HAS student loans to pay off at 0:33 - so she didn’t pay her way through college. Very strange that is not what Adam and Rich heard her say.

[@coltfeltes]

What they likely meant was that she is *paying* for her way. As opposed to having someone else pay for it.

[@WheelerRickRambles]

‘Financial Plan’ and ‘relationship with money’ are two different things.

[@desislavamustakertcheva7231]

❤❤❤❤

[@tomasr64]

I was born into a scarcity mindset about money and purpose, I created so much stress with that lifestyle. I cut my ties, went way low and have been in a much better abundance mindset. But I wonder when my meegerr savings will go to zero. Trying many ways to get the capitalist ways in me to manifest plenty of love.

[@diegonayalazo]

Merci

[@bankaihadouken1180]

Im ok with it..im not materialistic..and i give to animal charities each month....but i spend very little..drive an old car..live modest and simple..but then i dnt wana touch my bank...so its swings and roundabouts

[@FASHIENLILYD]

Have you read RICH DAD POOR DAD? Robert KIYOSAKI

[@keshakellogg5995]

Yeeeeess!! I attended a Rich Dad conference a decade ago and it turned my whole life toward thinking in terms of cash flow and which of the four quadrants I'm operating in! Sharon Lechter was the co-author (her name has been removed from recent editions) and I highly recommend her interviews on YT and books as well to get an amazing woman's perspective and advice.

[@berniceberry8530]

Stayed call

[@puddlesplasher7]

In the beginning you guys are making the assumption that she paid her way through college, but that's not true at all. She would have received a lot of help from family, at least 75-100k from family over the 4 years if she lived on campus....I can explain how I know this. If it's only two loans, we basically already know it's the federal student loans (un-subsidized loan and subsidized loan.)... these are capped at 31k total toward an undergraduate degree. These only offer a tiny bit of money each year, split up amongst 4 years, so in the end it is only a total of 31k spread out amongst all undergraduate years.... so with those, if your family can't foot the rest of the bill per year, you would have to take private loans. She has no private loans. She only has (a maximum of) $31,000 of federal student loan debt (Her two loans are only 1 un-subsidized federal loan, and 1 subsidized federal loan)... and undergraduates don't have to begin paying federal loans immediately upon graduation (although interest would accrue in non-pandemic times, but is not currently); there is a grace period, PLUS, ON TOP OF THAT she has been given a mega opportunity this year to save up and prepare for paying her tiny 31k loan, because federal student loans stopped accruing interest during pandemic, so you can pay your principal balance directly if you want to, and making payments have been only by choice since March or so, you aren't even required to make payments during this time, and interest won't accrue. Also, with FEDERAL loans, there is a ton of flexibility: you can pay them back under income-based plans, other non-traditional payment plans, tiered plans, etc, and you can do deferments or hardship situations to avoid paying for a few months if needed, or many months. Also, if you make under a certain amount of money, you don't have to pay at all, so most new graduates can get off the hook for a couple years if needed, bc that income-based amount is based on your taxes from like 1-2 years prior. Also, if you work in a non-profit or certain fields you can get a chunk written off or stop paying early. ===== ====== Tuition (credit hour/class fees) ONLY is average of 12k/year for in-state public institution; 26k for out-of-state students; 40-50k for private institutions Then add on a couple thousand for textbooks/licenses (even if you buy used, it can still be expensive, and you may still need to buy access code to the online publisher stuff if the previous owner already used the code and if professor makes students use those resources) Then add on room/board/food/etc and you've added on another 15-25k Total minimum is about 32,000/school year for in-state on campus Let's assume the cheapest paths possible for this young lady 1.) Ohio State (or any public uni as an in-state resident), lives on campus = 25k/school year MINIMUM (according to their prices for tuition, room/board rent, and possibly meal plan is included in that, if you take cheapest option for meal plan) doesn't include parking, AND I didn't even add in costs for textbooks, laptop/hard drives, personal expenses, insurance... so probably closer to 32k/year)... at minimum her 4 years would cost 100k, but in reality, closer to 128k. So, her family had to have paid about 75k - 100k over the 4 years (plus more, not accounted for there, if her family is paying her medical insurance, auto insurance or bus pass, cell phone bills, etc). ...and much much higher if she went to a private institution or was an out-of-state student somewhere. And her working a job isn't going to off-set that, at all... a job would maybe give her money for books, social events/restaurants as a treat, money for personal expenses like clothes, food, appliances, gas for car, parking, etc. 2.) A cheaper path would be Ohio State (or any public in-state university) as a commuter where she continues living with family and assuming they don't expect her to contribute for food and such or pay auto insurance or cell phone bill or anything for herself, and perhaps has a job for gas/personal expenses = she still would be on the hook for at least tuition (12k), parking (1k/year), books, etc (1-2k) = $15000/school year So that would still be MINIMUM of 60k for 4 years. ** ** Many universities force 1st year and sometimes 2nd year to live on campus, not be commuters, so that would increase cost that I did not take into account here. It's nearly impossible for any young person, following a traditional path of going to college just after high school, to be in a job that allows you to make enough money to pay for your own college completely, since the amount of money you make per hour with only a high school degree (and under age 18, if working job in HS to attempt to save for college) is hardly anything compared to the cost of tuition. I did this, too, and the amount of money I made and saved for college expenses covered hardly anything -- maybe parking pass, textbooks, and gas/day-to-day expenses to an extent. I worked before college (as HS student) and during college.... and still ended up with 2 federal loans (unsubsidized and subsidized) + 3 private loans bc I literally had nobody to pay my way through college like this girl did. I had $120k student loan debt when I graduated; most of that being private loans, which don't have the grace periods when you graduate, don't have any safety nets for hardship, and aren't income based and give zero fucks about how many other loans you're paying... and the interest rates are cruel... or were...maybe not for people who took them out in more recent years. Also, private student loan lenders are cut-throat, not nicey-nice like the federal ones who actually care and want you to not default and are nice if you miss a payment or talk to them and will remove late fees and help you get back on track if you miss payments without getting further behind...whereas private loans would laugh at you, have no safety net, and expect you to pony up the money regardless, and want you to fail, because it makes them more money, bc they've already taken out insurance on that entire loan at the moment they gave it to you (for the the principal + expected interest over the lifetime of loan), so if you default, they don't lose any money, bc they've already insured it... BUT they often gain money bc they can try to force you to settle, which then they get the insured amount of loan (all of it) plus the settlement cost, or they can put liens on your property, or sell the defaulted loan to an associated debt collector that then also gets them more money... because they collect the insurance, plus get money from the debt collector they hire, or could be a side company owned by same major company as the private lender. I am lucky, though...One of my 3 private loans somehow got written off years ago in a class-action legal thing due to the lender not following certain federal fair debt collection practices...it was for 20k..., but it then got added to my taxes as income and caused massive issues which was a stressor I had to deal with, and hire someone to help me (with money I didn't have), and the IRS still took issue with me and it was stressful, and I had still already paid a bunch of money to that loan at that point for no reason, and it was lost forever. Either way, my debt went from 120k to 100k basically overnight, which was nice. However, in total, I still pay $1000/month in student loans. By now, I've paid nearly as much or more than what I initially borrowed, but it still looks like i've made hardly any progress. I also live in Cleveland, Ohio, and it's not an area that pays a lot of money because the cost of living is much less here (which is partially why I stay, although I have been offered 100k/year job in Portland OR, but that's about the same as 50k here, and it probably would have been demolished during pandemic anyway, so I probably made a good choice not taking it), so I only make about 50k/year, and that's only more recently... I was still paying $1000/month toward student loans when I was making 30k as a new grad, 36k for a couple years after that, 40k for couple, 43-46 for a couple, and now only finally 50k.... but man, it's hard.... so I don't feel bad for this chick at the beginning who only has a maximum of 31k of federal student loans. That could be paid off easily in 3 years if she wanted to live how I lived as a new grad and paid $1000/mo to her loans. I actually feel somewhat jealous of her and think she is immature, instead of mature (like y'all seemed to think) , if she can't figure out how to manage paying off 31k of easy-peasy federal loans.

[@McBain2024]

Distant

[@maytons]

Money is a manmade concept, not a thing. Government and country are also manmade concepts, and fairly destructive ones. Though the representations of these concepts are physically manifest, the manifestations always have intrinsic values of zero.

[@ragheadand420roll]

What a shame she doesnt have a family instead of going into debt