Why Americans Are Actually Broke! (2023 Edition)

Americans might be bad with money, but you don’t have to be. In this episode, we discuss the underlying reason why Americans are so bad with money and how you can do it better.
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Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[@LeslieWagenheim]

Yes you might say that but More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. .

[@Pamcheryl]

Incredible. I believe in investing and working because I love luxury . when a buddy of mine recommended me to a financial advisor. We spoke about investments and money. I began investing with $120,000, and after two months, the value of my portfolio was $314,800. You think this is crazy, but I choose to reinvest my profit and become more intriguing. We have been working together for more than 10 years, consistently turning a profit. a year ago, opened my first restaurant and bought myself a brand new car last week.

[@BEAUTIFULDIANAFRANCIS]

@@Pamcheryl That's quite remarkable! I'm genuinely interested in benefiting from the guidance of such experienced advisors, especially considering the current state of my struggling portfolio. May I know the names of the advisors who has been assisting you in navigating these financial challenges?

[@Pamcheryl]

@@BEAUTIFULDIANAFRANCIS Cynthia Alexandra Jackson is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@Pamcheryl]

“Cynthia Alexandra Jackson” a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@BEAUTIFULDIANAFRANCIS]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@rnt45t1]

This country is two paychecks away from everyone just eating each other. We have no actual idea how bad it is out there, and people are willingly going into crazy amounts of debt for absolutely no reason.

[@gregleavitt1255]

Credit dependency coupled with id-and-ego-driven violence/greed/entitlement/jealousy/fear/loathing. Basically, it is what it is, a juvenile delinquent of a country. But that can be said of all of humanity. So..........🤷‍♂🙏

[@bobknob8440]

Government encourages the debt because without it, the country will fail. Our economics force the taxpaying citizens to spend like crazy and then rely on the gov to help them. Bigger gov to support our dependent nature in this country.

[@AxelQC]

No reason? It's because basic costs like housing, education, daycare, and health care have reason while wages have been stagnant since 1980. That's a big reason why the birth rate in the US is plummeting: children are too expensive to raise.

[@rnt45t1]

@@AxelQC no, the birthrate in the US is plummeting because the powers that be have spent 60 years convincing women that being wives and mothers is the worst fate that could befall them, and they believe it now! Women HATE men now. WAKE UP!

[@tdgdbs1]

@@bobknob8440 Therefore, GDP means very little. Better gauge is gross export.

[@AA-iy4gm]

I know 3 couples/families just off the top of my head that have modest incomes but are in debt because of 2-3 cars that are above average price, supporting dogs, going on tropical vacations yearly, going out to eat often or ordering in and buying clothes each new season to look trendy...so that's why I don't buy the excuses that it's near impossible to save money, people choose to live in denial and to compete with each other for social points.

[@kni9ght]

Exactly, you buy things that you don’t need with money you don’t have to impress people you don’t like

[@melissaguevara724]

Yep. I work at a credit union and I see this all the time!! It’s an overspending / buying items you can’t afford problem most of the time.

[@kni9ght]

@@melissaguevara724 I’ve been trying to live frugally and I have more gym memberships than anything, theirs most of my entertainment

[@ivobiancucci4528]

My Ford Escape is 18 years old still gets me where I need to go

[@joycewright5386]

Yes! Every time I ask my husband how can “so and so” afford all that stuff, he replies that there is wealth and there is the appearance of wealth.

[@ashleyrizzo2177]

We're a two income family of four- its absurd what things cost. Even thrift shops are raising their prices. As a business owner, my health insurance is more than my mortgage. The cost of leasing my mediocre, non-luxury Subaru Imprezza has trippled over 3 years. Groceries for my family of four are more than my mortgage. We don't buy "extras". My car insurance went up, just because. I'm not sure how I'm supposed to save when the cost of basic necessities are skyrocketing every year.

[@mary-jvazquez6306]

The middle class is disappearing did you see that report ? Most of the time the middle class is too busy working 60 + hours to pay attention at our surroundings this allows the politicians and big tech to steal with out us noticing.

[@letmehelpyou470]

Between the two incomes, are you keeping track of every dollar that is being spent? If you want to save, you have to shop around. That means shopping around every year on car insurance if you feel that you are paying too much, shop around for a different internet service/cable bill and the cell phone bill, etc. In order to survive, do your homework.

[@OShackHennessy]

@@letmehelpyou470o they’re not keeping a tight budget and tracking g all spending otherwise you wouldn’t get the woe is me attitude. Oh, and they’re leasing 😂

[@nolongeranurse3369]

You can feed a family of 4 a healthy home cooked food for 400 a month or under e ven in AK and HI...no way your mortgage is that low.

[@cherylT321]

You should also stop leasing your car and look for a used car to buy outright!

[@mrsmcdowell02]

Please consider creating a homeschool high school course! I would love it for my kids. Or even just one episode with the basics s directed toward them that I could have them watch would be great.

[@williamforsythe9180]

Every episode is the “basics”. It’s not rocket science

[@potatoeSSB]

​@@williamforsythe9180 even rocket scientists go into bad debt

[@potatoeSSB]

@@williamforsythe9180 🤓🤓🤓

[@bobknob8440]

@@williamforsythe9180 I drive a Maserati. Keyboard warrior style.

[@bobknob8440]

@@williamforsythe9180 I was BSing. I drive a work vehicle and can't actually afford one today.

[@amitychief3061]

Loved the statement "You own your time". I started saving and investing early. Retired at 55. Now I am on nobody's schedule but my own.

[@Fred-F4]

good for you! enjoy!

[@DaveM-FFB]

Great advice. Forty years ago, I actually purchased my first home (a condo) with 1% down, as part of a first time homeowners program. Over 5 years, the appreciation outpaced my ability to save. That allowed me to put 10% down on my next home, which I kept for ~5 years, once again benefitting from the appreciation. On my 3rd home, I was able to put 20% down, just from the appreciation on the previous homes.

[@mrjuvy49]

Did you go to a 15yr and pay if off?

[@DaveM-FFB]

@@mrjuvy49 Yes (15y), and no (pay off), doesn't make sense at 3% interest.

[@ddellwo]

You must live in a different market than me! Here in Houston, I purchased the home I currently live in back in 2002 and it really didn’t start escalating much in value until the last five years or so. As a child of the 70’s, who watched some of my older siblings enjoy some pretty hefty appreciation in their home values (also a different market - Minneapolis) I was a little miffed about how my home wasn’t the same economic engine for me……..🫤

[@DaveM-FFB]

@@ddellwo Perhaps we've been lucky in that regard. We purchased our current house 6 years ago and the value has increased by 50%.

[@ewitte12]

In a Houston suburb since 2001 price is up about 2.5 times.

[@TheFirstRealChewy]

I went to an event today and everyone drove what looked like a new luxury car. I couldn't help but feel behind. It made me want to make more money. These days financial independence is the luxury I'm pursuing. I want to be wealthy before I look wealthy.

[@genxx2724]

I wouldn’t feel “behind”. You don’t know their numbers.

[@flicks28]

Remember, you always see other peoples expenses, but you never see their wealth.

[@bunacat1]

I don't want to look wealthy (I am succeeding at that lol). I drive an 11 year old car and don't care what people think (my friends like to tell me that I need a new car). My luxury is having no car payments for the last 8 years and counting. I would never tell anyone how much money we have.

[@ddipas]

Great show! I'm in my mid-50's and I wish I had heard this advice when I was young! I started late but I'm on my way now!

[@mattlynn464]

I love this show and have gotten so much out of it. However, citing the United States GDP alongside poor savings rates without mentioning the enormous wage disparity between America's ultra-wealthy class and rest of the country is a huge omission here, in my opinion. Are there things individuals can do to improve their savings rates? Of course! But there are larger systemic issues at play here.

[@dgfreshx]

At the end of the day, you can only control the variables that are you in your power to control. I can't change institutions, but I can sure as hell not spend loads of cash on stupid cars and coffee. That is all they are preaching. Plus I don't see how a rich person existing impacts my own ability to save. How is the wage gap preventing you from saving money?

[@mattlynn464]

@@dgfreshx Great question! The wage gap prevents working people from saving because working people's incomes have stayed flat (and have for many years) while cost of living and c-level salaries have skyrocketed. When earnings stagnate, saving becomes increasingly difficult.

[@dgfreshx]

@@mattlynn464 That still doesn't explain the fact that of the countries they list, only Norway has a higher median income per capita. On top of that, several countries listed (Israel, Denmark, and Norway) have higher costs of living. Ireland and South Korea are nearly identical in terms of cost of living to the US. Several countries earn less money and have higher costs and still save more than the US.

[@jasonwilkins1969]

I was thinking the same thing. I don’t know why they would cite GDP. A much more accurate figure would be savings rate in relation to median income.

[@denniss8048]

The ultra wealthy do not earn a wage they own companies and / or assets. When Biden says he's going to help the poor with various hand outs, he needs to print money to do it. This devalues the US dollars and causes inflation. High inflation hurts the poor the most while it drives asset prices higher benefiting the rich! Be careful when voting for a party that claims it "helps the poor" !!

[@Jamie-dz8dg]

70% of GDP in the US is consumer spending...most aren't saving money because everything bit of marketing is spend, spend, spend. Lots more nuance and complexity to the economy in the US vs other countries. People could save more, but they just don't do it and many do not know any better.

[@al4465]

We have a winner here. GDP is a fake number in US and includes services such as Healthcare and banking / financial . Examples. A company with a spreadsheet and 3 table office in let’s say Connecticut doing trades on Wall Street with a company in NJ , through Wall Street stocks. Both companies bought and sold a Billion $ worth of stocks with net profit of $0. But GDP is $1 Bln. Another example. Healthcare - the more population is sick the more they spend on drugs etc and the higher is the GDP. It’s absurd.

[@arielgoldfarb4118]

@@al4465 Interesting. Could you explain it more because gdp numbers in US always seemed to me overly exaggerated for a economy that grows 2% average.

[@anniealexander9616]

I don't even try to keep up with my friends. They can't possibly afford all the luxuries they purchase. It feels like 2006.

[@terryli340]

I never forget what my account said to me 35 years ago...... "It's not how much you make, it's how much you keep in your bank". This wisdom enabled me and my spouse to retire early in life. Pay off all your debt and live within your means, but still enjoy your life.

[@vanessaf7259]

As the head of HR for a financial institution, I’ve realized that there’s not nearly enough retirement saving education for employees who come from financially illiterate families. We have auto enrollment (opting out is easy but very few do) and we make employer matching contributions, which might be leading some of our financially insecure employees to make retirement saving decisions they don’t fully understand. I’ve have quite a few (relative to our headcount) hardship withdrawal requests that don’t actually qualify. And so often, those requests come from the same employees whose biweekly retirement contributions are so big, their net pay has me wondering how they can possibly pay their bills 👀 Saving even $5 a month for retirement is better than nothing. But saving more than you can afford to not touch is just hurting yourself. In another scenario, an employee had a very difficult time understanding why she couldn’t withdraw 100% of her 401K funds while staying employed. That particularly blew my mind, because she had worked in banking a long time and DID understand how the CDs she sold to customers worked 🤦‍♀️🤷‍♀️

[@dovydasstasionis]

Considering diversity quotas, affirmative actions and another nonsense existing nowadays, it's absolutely no surprise that some people working in institutions and taking positions, where actually they shouldn't be even close

[@mattsarff2793]

Thinking about ditching my expensive car for a cheaper one that I will buy in cash. I will live next to public transit to get me to work and really want to focus on savings so I can buy an investment property in a few years.

[@brandonkinne9221]

Sounds like an awesome plan! As long as you get from point A to point B, you're good! The only people who care about what car you drive are probably in debt up to their eyeballs with their own giant car loan.

[@wesleyterry877]

The average housing price has gone up, but so has the size of the houses. Average sqft per resident is up from 370sqft/res in 1980 to 1100sqft/res in 2021.

[@donaldlyons17]

Well and there are housing restrictions. The majority of people care about the value of their house. I don't because I want an income that can outpace expenses.

[@texasboy5117]

I’m 73 and did this for decades. We now have a sizable 6 figure income in retirement and only spend part of the income.

[@amandaarndt4778]

Excellent show today!!! I’m really thankful I found your channnel and I’ll be sharing this with friends 🎉

[@cyclingphilosopher8798]

Lao Tzu: "When you know you have enough, you are truly wealthy". A quote I live by. Regarding the disconnect between wage growth and prices, you might perhaps also want to compare GDP per capita and median wage since the 1950. You'll see the disconnect between value added by wage earners and the median wages themselves have started to disconnect in the early 1970's. Over here in Europe, the difference in growth rate between GDP per capita and median wages is on average about 1.25% per year. Doesn't sound like much, but over about 55 years your compensation lags by about 50% with respect to GDP per capita growth. The assumed rate of return of 10% is a bit high for my taste as it is a very specific time frame and a very specific market index. The average growth rate of nominal global GDP is about 6.3% per year. But still, any average percentage growth is an exponential function. Another lesson we can draw from this: paying attention during math class pays handsomely.

[@thecurrentmoment]

How is the GDP per capita calculated? I think it would be averaged across the population, which means it will be heavily skewed towards the people at the high end, which is why people use median income instead of average income. Looking at the average income and average GDP might be a better comparison, although I'm sure the people with the most income prefer to not be too obvious about it and it would come under their net worth rather income. It would be interesting to know what the MEDIAN GDP per person is, maybe this is a better fit with the median wage

[@thecurrentmoment]

To get over the comparison problem, maybe try calculating your wealth in terms of time, rather than money. I.e. how many months/years can you go without working, based on your current lifestyle/expenses? Another way to look at it is how long can someone sustain their lifestyle? Among the group of millionaires in the room, there will be some who are barely above water and will be facing stress, whereas there will be some in the room who have the same lifestyle but are super relaxed and have peace of mind because they know they can comfortably sustain their lifestyle no matter what happens, because they are not overextending themselves. It's like someone buying a lambo who has spent a fraction of their wealth on it, versus someone who put everything they have into it, and have next to nothing left.

[@77Tadams]

Took all the the 401k out during the pandemic. It was taxed over three years. With that money we bought Real Estate and started our own business in 2021. We have been doing wonderful. We plan to scale on getting more Real Estate until we retire on the money coming in from the cashflow of renting those out. Never looking back to working for a 9-5 paycheck. Make your money work for you. Don't work for money.

[@wecvgb9]

Amen. work to become wealthy, dont worry about investing for a retirement, that is a pipe dream for the rare few. a 401K enriches money managers, nothing more. Owning a business is the surest method to financial success. That, or working for the government.

[@ked147971]

Seems like the answer to this is companies making profit, which is just unpaid labor. Seems like that's what we need to fix.

[@tylersanders2388]

@ 11:39 The latte decisions are a huge deal. The problem with that point is that it doesn’t reach the people it needs to because the latte problem isn’t explained correctly. Lattes are a placeholder for wasteful lifestyle. Have a system set up where you have sustainably priced coffee that you love, and enjoy a nice latte once in a while. Do this in all areas of your life and that’s what turns the latte problem into wealth

[@nicodimus2222]

Not everyone tries to keep up with the Joneses. I live on an animal farm in a 1428 square foot house (free and clear, and no debt.) Almost all of our money goes towards necessary expenses to take excellent care of the animals and maintaining the property. I don't know or care who my neighbors are, or what they have. Because the farm is surrounded by forest, we can't see them and they can't see us. We're also not on social media.

[@cashflow68]

Great tips here from a millionaire next door. Currently driving my 2008 Honda Civic LX bought new. T shirts & jeans from Walmart. Im a no show, all dough guy living under the radar. I love it. Nobody looks or even bothers me.

[@stevenporter863]

Dave Ramsey had a great example how compounding savings works and why not that much happens at the beginning. He says think of an ice cube in a 25 degree room where you increase the temperature 1 degree at a time. From 25 to 32 - nothing. 33 and up it starts to melt. The higher (longer) the more it melts (money compounds).

[@FrugalTeacherFI]

Teacher here. Cost me $55,000 to get two degrees. Starting salary? $27,000. And they wonder why there is a teacher shortage in this country. Demand a masters degree in my state but won’t pay you a comparable wage to other masters degree professions.

[@amysteele9778]

Great show

[@nicksmith8141]

Scary number. My wife and I are close to 30% savings and that is probably too low. We are millennials, but on the older end. I have never touched my 401k, or either my traditional or Roth IRAs. I have three layers of emergency fund in several brokerage accounts. We have cash and high income fund in the 1st layer, Index funds and ETFs in the 2nd layer and individual stocks in the 3rd. I did have to scratch the 1st layer this year after a series of car issues, but have a plan to restore that amount by early next year and resume growing.

[@Aerrow62]

Here is two counter points for your 'wealthiest nation' trope. Most of the gdp is paper valuation and not the base value of goods and tangibles. The national debt makes you practically broke and bankrupt with over 124 % debt to gdp. Total debt is over 700% of gdp. You are not just broke but broke 7 times over. The creditors are beginning to move towards stopping the lending.

[@Vitone22]

The day you stop comparing yourself to others, that’s the day you’ll become free!

[@frederickmorton275]

Great content guys. Love this channel. I'm fan of Dave Ramsey channel but I think you are going a bit more into detail of things and devil is in the detail

[@anpham1011]

Being born and raised to be a spender In this heavily influenced capitalism country is the reason why. I am from a developing country and we don't rely on government nor 401k. WE SAVE every cent we make.

[@GaganSingh-il2tl]

The American GDP is big because of consumer spending which is the biggest component of our GDP. The GDP would fall drastically if the savings rate goes up and that's why so much stimulus was pumped during Covid. Catch-22

[@jpdriver1967]

When your passive investments become the #1 earner in the household, you have made it!

[@kimberlyturner820]

Wow. Valuable information.

[@ronaldslater7755]

Where were you guys 30 years ago? I restarted contributing to my 403b at the age of 51.5. I am living on rice without the beans, trying to save for my retirement. But it is tough to save much on my public school teacher salary. I am contributing as much as I can, starting all over again.

[@zeldat6654]

It's never too late to start. Even small amounts

[@emilytruesdell5969]

4:46 is Rule #1 in YNAB- Give every dollar a job. I'd love to hear the money guys' opinions on YNAB- thanks for all of this important knowledge and keep up the great work!!!

[@vancelee3506]

I honestly don’t know what to do anymore. I have a wife and 2 teenagers and I make almost double minimum wage in my state. My wife has been making a little less money lately but all in all we are bringing in close to the same amount as we were before the pandemic. My electric bill rates have been increased. Groceries are about double what they were (we kept receipts to compare to). Now I literally feel broke. We have cut back so much it’s unbelievable. Yet still I can’t buy a home. I can barely keep my bills paid. I’m struggling mentally and emotionally at this point because I feel like I’m busting my ass day in and day out and can barely keep my family above water. I rent for $500 a month which is laughable in todays time. I don’t understand it anymore I can’t save money despite having slashed all extra spending and sticking with it consistently

[@vancelee3506]

@@BenTomes-vi6bg I guess that’s a fair point. I believe in Virginia it’s $12 at the moment and I make 20

[@jamestrotter6489]

Thank you for all of your financial advice…👍

[@delayedgratification581]

You should check the reality of the car market. The average car nowadays is bought just under 50K. Next to no one can buy that in a year.

[@KS0102]

In school, we knew who had money and who didnt. The poor kids were always ranked on for wearing KMart clothes.

[@donaldlyons17]

Or had very different priorities.

[@briangode1381]

I left out what is never seen ontv advertising auto insurance all details on spending saving costs just ask before signing getting your policy it varies somewhat in different areas towns wher we live or mucho we all need only basics of life but thank you

[@zeldat6654]

What do you include in home payment besides mortgage, insurance and taxes. Utilities? Maintenance?

[@livefreeandwise6044]

All right, now here's where everybody writes in the comment section how they are 5 years old and have $500,000,000 saved, just because they want to get thumbs up and feel better about their pathetic existence where their savings is literally the only good thing about their life.

[@CheckThisOut77]

Cars: I always buy used and pay cash. I do not leverage any depreciating items.

[@hcalo]

North and South America are American countries 🌎,So technically we are Americans not just the USA 🇺🇲

[@joycewright5386]

I couldn’t afford to save until I was 30 but now happily retired, no debt, large net worth.

[@GLRYB2GD]

Gr8 job. 👊🏻

[@YoungMule]

Felt like I just listened to a church sermon but it was about money 😂 thanks for the message

[@ShakeyHuron]

Great information as always!

[@jacksonbrumfield1061]

Interesting how most of the countries in this list have single payer healthcare. It’s almost as if predatory pharmaceutical and insurance companies is bad for us.

[@Shawn-oh5yq]

Why did they choose 1990 as the starting point for the S&P returns example?

[@July.4.1776]

The savings rate is low due to everyone spending which drives the economy.

[@KC-dr3cg]

Inflation means being careful in large AND small purchases.

[@ewitte12]

Doesn't seem leaky I've had issues getting money out just to move to a better plan.

[@ezramullen4551]

No mention of credit cards? Those can be a huge barrier to building wealth. The amount of credit card debt is bananas.

[@TheSilvertrigger]

You lost me when you started talking about auto loans. Its okay to have a mortgage but don't finance a car 🚙 get a cheap reliable vehicle with cash.

[@peezy-wheezy]

I share your content with all young people I meet. This may be far fetched, but I think every high school should have a mandatory class that teaches this kind of content.

[@RobWilliams007]

Savings rates are low cuz we’re idiots.

[@autumnmoore1492]

Hey, Gen Xer!

[@keithjansen1734]

It does not help that money managers of retirement plans invest in the stock market and my $100,000 turns into $5,000, this actually happen to several people I know.

[@hugohabicht9957]

0:56 No . Switzerland , Norway, Luxembourg still way ahead of you guys

[@jsebby2284]

What do you mean no lol

[@hugohabicht9957]

@@jsebby2284 Just read 😂

[@jsebby2284]

@hugohabicht9957 I did. And your comment makes no sense lol. That's why I asked. Unless I'm missing something?

[@DJPleasureSeekingMissle]

GDP is not a good indicator of wealth. PPP is a better metric and China beats us in that.

[@DeportillegalAliens]

So many ways to gamble that's part of the reason for sure! That and alcohol/drugs.

[@MaryTongx]

With changes in the economy leading to instability in the stock market, some individuals may face a decrease in their investments in an effort to benefit from the current market conditions, I am considering liquidating my $725k portfolio consisting of bonds and stocks. Someone else in the same situation? Please tell me in the comments!..

[@AllisonSherman7]

would suggest you thoroughly evaluate the companies you have invested in and their estimated future performance, as we may expect to see the market decline further. To minimize stress and improve efficiency, it might be wise to seek the assistance of an investment advisor to help restructure your portfolio and identify any underperforming investments to offset. This approach has been successful for me and has reduced my stress levels.

[@MaryTongx]

I have been exploring the possibility of utilizing advisors to help navigate the stock market during these uncertain times. However, I am still evaluating their potential effectiveness in providing the support I need. @@AllisonSherman7

[@AllisonSherman7]

@@MaryTongx Christy Vallen D'souza is an esteemed coach known for her proficiency in her area of expertise. You probably might have come across her. I found her on a CNBC interview where she was featured and i reached out to her afterwards. She has since provided entry and exit points on the securities I focus on. You can carry out a quick internet research on her name for more info. I basically follow her market moves and haven’t regretted doing so...

[@feeddaneed]

I don't hear health care or medical costs/bills mentioned. This is a BIG reason for being BROKE in the US. :/

[@beny9997]

Cuz ppl in other countries don't get sick

[@hahamasala]

I read that medical bills are the number one cause of bankruptcy in the US. But conservatives and Republicans will never talk about this. They'd rather fight against health care for all while cutting taxes for the wealthy and corporations.

[@wonderingthoughts926]

This is true in some cases, but in many cases people spend too much on non essentials such as flashy cars etc. Leaving them without the margin needed to cover such emergency bills.

[@mary-jvazquez6306]

Yes , there is a lot of money in the US but the very few are hogging it all with the assistance of corrupt politicians who make laws and regulations and bail outs so the rich get richer and the poor get poorer.

[@autumnmoore1492]

@@wonderingthoughts926 This is true in some cases buying a car is not likely you to bankrupt you like medical bills.

[@ddellwo]

Yes - looking back, my parents did a pretty good job of masking the kids in my family from the reality that we didn’t have much money! I was the first child in my family to go to college, and qualified for Pell Grants to do so. It wasn’t until much later in life that I realized you don’t qualify for Pell Grants unless you’re on the lower end of the economic spectrum! Social media is the arch-enemy of financial sanity! My wife falls every time for the latest “FakeBook” post that shows one of her friends with a new car or on a fancy vacation! I know most of these people, and unless mommy and daddy are paying for the trip, the only way they can afford a lot of this stuff is because they are making a choice between “living for today” at the expense of their future financial security……..😐

[@Erginartesia]

I agree! And in fact, I remember them teaching me ‘never talk about your $’

[@vanessaf7259]

Social media is definitely a huge culprit for so many people. Growing up, my family was upper middle class. But my parents consistently lived below their means, their mortgage was their only debt, and my dad never missed a chance to remind my brother and me that having a lot of “stuff” doesn’t mean someone has a lot of money. I understood the lesson, but I don’t think I comprehended the huge impact of regularly hearing it from a young age, until I was in my late 20’s and started to observe a broad variety of financial habits within my social and work circles. My money habits still aren’t perfect, but I don’t feel the need to buy status symbols and I’m not influenced by how other people spend their money.

[@ddellwo]

@@vanessaf7259 - That attitude will serve you well long term! We all have financial weaknesses, but overall if we spend less than we make an invest the difference there’s no reason anyone living in a country with so many opportunities shouldn’t do well…….👍

[@joelwillems4081]

Are you my older brother? Seriously, similar stories. Although we weren't masked that perfect from not having much money. We got the free lunches at school, qualified for WIC and got some small county jobs where us kids did some minor work and parents got some money. First kid of six to go through college got loads of free government money. I was the fourth but got the most academic scholarships while some other members got some athletic ones. We all made it through without nearly the average debt of a college kid today. Two had zero debt and two had less than $10k each. The other two were girls, higher spending, but still had only about $20k. All private colleges too. It can be done.

[@ElliottNest41]

I have no debt. And yet, I feel like I’m broke due to the impact of inflation. Have eliminated most of my discretionary spending.

[@tatripp]

I feel you, man. It's tough out there, especially for young people.

[@KC-dr3cg]

replay in small segements?

[@Generationcomeback]

That's sucks abs it's tough for most people these days facing inflation. For you is could be the pay per hour for the reason you struggling or it something else. The reason I say this because that was my situation last year struggling paying everything until I job hop to three jobs now paying alot better and even invest the money for the future

[@ethanmurray9417]

Sounds like your income needs to increase to match or beat inflation

[@roburb73]

Maybe an income/spending problem? Maybe I'm different, but inflation hasn't affected us much at all. Sure, groceries are higher and so is gas. However, it's not making a difference in our standard of living or our investment strategy.

[@terrisewell4729]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life too 🙏🙏🙏

[@limburgerfarrell3499]

You may never know the value of that €1 you have until you go bankrupt, the bad experience I had last year really made me feel that our school curricula should contain more financial knowledge and education. It is never enough to have a good job, a huge salary and all the luxuries at your disposal. But saving money and investing it wisely is never a bad idea,... I learned how to invest, no matter how little, but life really believed me the hard way.

[@jimbouchilon389]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time.

[@johnalex4006]

I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.

[@Soboj-oy8me]

yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an ex pert can lead to a great loss too

[@nengsolavillasorda8519]

exactly! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn

[@bonniegaither3994]

That’s why it’s hard for me as a lower income person to have sympathy for people who make over $100,000 a year and claim they’re living paycheck to paycheck

[@joelwillems4081]

My take is that there is always someone out there making less than me and making it stretch even better than me. I'm in the non-profit field so will never make $100k. I'm far wealthier than the peers in my age and income range though so there's that.

[@donaldlyons17]

@@joelwillems4081 What does your wealth compared to your peers and age have to do with what you need to worry about? Making stuff work for you should be the goal right and if so why does what someone else do have to do with you?

[@cloudtim8955]

in VHCOL living areas 100k is barely surviving.

[@bellmattwebb]

Never made more than 50k until I got married. Will probably never make more than 200k between the two of us. Still planning on being just fine.

[@donaldlyons17]

@@bellmattwebb Well it all depends on lots of factors. Some people don't need to make as much as others. The whole idea something works for X will work for Y is part of the problem anyway because that is not true. I know someone who pays 50K just to rent an apartment!!!!

[@mosesabruzzi3087]

This is scary. Rich people pay politicians to make sure they get access to taxpayer funds first when banks shutter or they're in jeopardy of losing all their money. I feel bad for the lowest paid workers that may be affected, but not CEO's. A lot of them have created this abusive corporate pay structure where they are paid 300 to 400 percent above the salary of entry level workers. Most add very little value. They posture and perform with speeches, meetings, and excessive travel to provide the appearance of working hard. It's a con.

[@Gdrtffd]

Very big con and that is why i have always maintained that people should never have their money in the bank! Get a financial advisor and even make so much more while saving!

[@pogiboy3571]

the rich control the world, put that in your thick head.

[@dippy2482]

Rich people pay politicians to stay rich or keep what they have.

[@bigmatt503]

You should become a CEO since it's a con and any moron could do it

[@jsebby2284]

Saying most CEOs add very little value is just crazy lol. And divide those CEO salaries by the number of employees at the company and see how much they're actually costing their employees. You'll be surprised

[@cuz129]

What's so impressive is how many other personal finance influencers mention you two as being among their favorite content creators. I think the chemistry of your mutual respect and affection is powerful!

[@cuz129]

It doesn't hurt you both look like very fit ESPN broadcasters. Taking care of ourselves physically is just as important as taking care of our finances. You guys are obviously consistent across all areas of life.

[@davidmilhouscarter8198]

0:02 Why Americans are broke: look in the driveway.

[@davidbobo9740]

I was a cook for 2 years in my early 20's. Now that skill I use at home and save oodles of money without sacrificing quality . I taught all my kids to do the same

[@fonz-ys6xu]

Nice! I took it upon myself to learn, thankfully KZbin provides the foundation that I built on. Same for basic maintenance on our cars, as well as mixing good cocktails at home. Not to brag too much, but now when we do go out my wife and I are usually disappointed by the drinks because I can mix better at home 😅

[@Howdy1957]

Americans are big consumers! We want everything and wantit now!!We have very poor financial knowledge!

[@bunacat1]

I was never a spender, but one thing this pandemic taught me was that I can have a good life on even less. I hardly buy anything anymore unless it runs or wears out. This isn't because I am trying to be extra frugal (but it's a perk), it's because I don't care that people think I should get a new car or more stylish clothes. I haven't bought a pair of shoes/clothes since before the pandemic started, now I am wearing everything that has been stagnating in my closet. It feels awesome! Plus because I'm not spending I can up my contributions and investments!

[@SanJoseCA-ot3qy]

👋👍

[@kni9ght]

Exactly, I ain’t bought new clothes until I have to and any friends that care about my clothing don’t care about me

[@SuperT]

I can’t tell if I’m the one who’s normal and everyone else is brainwashed to want things or if I’m not normal and other people genuinely want things. I don’t buy stuff because I don’t want anything because I don’t really need anything

[@kni9ght]

@@SuperT I’m the same way, If it isn’t something I need for one ways to express myself authentically and sincerely it doesn’t matter, also I believe it’s bad for the soul to be able to buy everything you want but can’t truly afford what one needs

[@ddsgabo]

I only spend for food and travel; that's it. I contribute every single paycheck. No excuses

[@TecnamTwin]

There are exactly ZERO places to rent or buy for 25% of my income to house my family. I'm at 56% of my income for housing in a rental that's considered on the low end for my area. You say you understand everything's gotten more expensive then you proceed to say the exact same tone-deaf thing you've been saying for years. Those percentages are just not realistic in many places. They're just not. Use some real numbers please. On the flip side, I'm up 40% this year on my investments having pumped into last year's end market freefall.

[@Dohair879]

Gen X also. I didn’t know until I was 16 my dad was a multi millionaire. I had an economic project in school and when we started taking about business it hit me. My parents had their house paid off the year I graduated HS. They were 41. My dad retired at 58 years. I’m trying and have wonderful role models but I can say I’m definitely behind them. Not doing bad but not doing as well as they did.

[@miguelasilvestre]

To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal. Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.

[@miguelasilvestre]

@@christinaryan9554 MARTHA ALONSO HARA

[@miguelasilvestre]

look her up online if you care for supervision.

[@Mark-oq9fl]

The US also ranks #47 on the wealth equality index - one spot above Haiti. We rank #20 on the cost of living index, 27 places higher. If you are doing well here, there is no excuse. If you are doing poorly here, then it is hard to deal with the double whammy of wealth inequality and high cost of living.

[@thecurrentmoment]

Wealth equality or income equality? Wealth equality is based on how people choose to spend their money (mostly, I.e. do they invest it or spend it) whereas income equality is about money coming in, I.e. what you use to build wealth. What the income equality stats for the could tries you mentioned? Because if people are making lots of money but not saving any of it (the savings rate they mentioned) then the wealth equality of the usa has little to do with their income equality, I.e. the wealth busing potential

[@pensacola321]

I am comfortably retired with no Financial issues. But I do think the younger people have a gripe, especially when it comes to wealth and income inequality. We are a wealthy Nation with many poor people. And that's the problem.

[@luxyminimalist]

I always laugh when I hear people say many wealthy people don’t drive nice cars. I live around some of the wealthiest people in the country. Despite what these financial people say, the majority of them aren’t out here rolling in Corollas or Hyundais. Many or most of them either have high-end, luxury cars like BMW, Audi, etc. or a Prius/Tesla as they are the flex among the wealthy and environmentally conscious. They still like to drive nice cars, but the difference is that their cars are PAID OFF or leased for business tax purposes. Either way, they aren’t out here taking out car notes of $1,000 for 84 months. It’s totally OK to want to own nice things-as long as you don’t destroy your finances getting there.

[@tammyturowski6703]

Nice cars also hold their value better than cheap cars

[@lwwarren]

​@@tammyturowski6703show me an example of this? Most luxury vehicles lose initially value much faster than economy cars. That used Ferrari may cost "only" $25,000 but it was $250k new and the oil change is $1200, new brakes are $5000. That Corolla may have lost its value down to $5000 but it only cost $25,000 and the oil change is $50 and new brakes are $400. The lower upper class consists of some of the most frugal people and some of the most extravagant spenders. The frugal ones will have a comfortable retirement. The others will struggle.

[@whothou]

Yes ONCE you're wealthy you're free to splurge. Also you're not considering that these people may just have high incomes and are living close to pay check to pay check just on a higher income.

[@jeran881]

The numbers these guys are talking about, I could afford a tent and a bicycle. The new American dream.

[@ThePatriots010304]

This stuff has to be mandatory senior year of high school. The best classes I took were Finance I and II my senior year and those were elective classes.

[@rosepetal9067]

I grew up in middle class and my parents weren't extravagant, didn't keep up with the joneses and never spoiled us and I think that motivated me and my siblings to be wise with money. My dad drilled into us too about a pension and it stuck.

[@JesusChrist2000BC]

Cool story. Middle class is nonexistent now.

[@anotherpace]

While I understand the purpose of the show is about individual accountability - as far as I can tell from outside the country, access to 401k is based on your employer setting something up and having options that aren't an absurd MER vs. in Canada anyone with employment income last year can set up an RRSP through a bank/credit union (employers can also set up RRSP matching, but you aren't tied to them doing so). US as a whole is rich, but the economic inequality is bad and widening.

[@hteadx]

A breakdown of recommended expenses and savings for each tax bracket would be helpful and set realistic goals for people. Not just percentages actual hard numbers.

[@Erginartesia]

Aka … a budget

[@Steven-xf8mz]

I think the only thing I don't agree is 25% of gross income = housing. Generally speaking most people live around major cities, in these cities and their nearby area aren't exactly cheap, 25% of their income get their the most dangerous neighborhood where safety is a concern and these housing price often don't go higher.

[@Steven-xf8mz]

@@ilsa_xo I only this only applies to people who are working in major cities. To get under 30% of gross income for rent, I bet the solution is 3+ hour commute, or sharing 3-4 bedroom apt with 1 bathroom, and a guy sleeping on the couch. lol.

[@OShackHennessy]

Buying men’s sports Rolexes is never a bad thing you will always come out ahead. It’s the only thing I’ll actually spend money on otherwise I live like a poor person. They’ll all be given to my child when I leave this earth for them to blow as they see fit. In 5 years the value of my watch collection has appreciated by approximately 250%.

[@johnmichael8748]

60 years old and this stuff still motivates me!

[@keptkozy]

I have zero debt, I make $90k/year but feel completely broke. 2 kids and only income for the family. We're in a 600 sqft 4th story walk up apartment, stuck in an area where rent is like $4-5k/month for 2br in an elevator building. I will never own a home. 😂

[@thoryan3057]

You're getting ripped off. Could you rent somewhere else?

[@keptkozy]

​@@thoryan3057 I'm paying $1785 in an areas where the average is like $4-5k. Not a ripoff for the market.

[@1227Masher]

Time to move somewhere else…

[@leamontana199]

Upstate NY you can buy a nice 3 bedroom home for $200,000-250,000. Time to move.

[@tonyc6996]

@@leamontana199being from upstate ny can’t support anyone to live anywhere in NY. Sooo many better parts of the country to live in

[@BeeTimesTwo]

Always encouraging - I’m still in the sub-10 year mark and it feels stagnant most of the time. Definitely won’t stop 💪🏻

[@jasonmoquin]

I know just how you feel. I just hit year 13 and I can already see the money making money for me. Trust me, you WILL see it start to climb, but boy is it agonizing at the start. Stick with it….you’re winning! 😊

[@jpdriver1967]

It feels that way for many many years. Be patient. The day will come. One day in the future though, that money starts earning more than you do and it is fantastic!

[@kents.2866]

A lot of people around me have 600 dollar car payments, the newest cell phone, etc. Then complain about being broke.

[@mrjuvy49]

They will not take vacation like we do, all paid from investment gains, not debt

[@jasonmoquin]

Right?! That is happening all around me, as well. When they say they have no money to save or invest, I ask them why they spent a grand on that new phone when their prior one worked just fine, or why they traded in their less than 5 year-old perfectly good car for one 30+ grand more expensive they usually just give a blank stare…like it’s a stupid question. Then you get the ‘but you gotta have STUFF, man’ rebuttal. There was a point in my life that I had that attitude, as well, so I get it….it’s just painful to witness and hear. I just wish that I had someone calling me out about it back then and had access to the advice of people like these guys. Maybe some of it would have stuck sooner.

[@genxx2724]

@@jasonmoquin There were always books on this subject. No, it wasn’t being spoon fed to you by the internet, you actually had to go to the library or book store and seek it.

[@proper.role.model.819]

And go on vacation and use the excuse they’re stressed from life and put it on a cc all while complaining they’re underpaid and don’t make enough while living in a house over their means

[@cancel.lgbtq.6892]

My coworkers are driving Lexus , BMW , Tesla , 50k+ SUV. They look surprised when I told them I drive a 23 year old Acura. Not that I can't afford new car. I just hate having car payments. They looked even more surprise when I told them my house is paid off. I paid my son college tuition in cash so he doesn't have any student loan debt.

[@mike125520002000]

In 40 years I’m hoping to buy a Toyota Camry at a quarter of a mil

[@janetasullivan-white-pomon2639]

If we compare ourselves to the European savings rates and GDPs , we should also consider that in those countries the bottom 50% of their population shares 20% of the gdp. Our bottom 50% has to split 10%. Also Europeans can give birth for free, have a medical emergency for free, free day care. Think what would happen to the American savings rate if our bottom 50% doubled their share of the nations gdp and didn’t have to pay for healthcare.

[@Lillith.]

Let me see if it checks out what you say for my country. Giving birth is included in health insurance which you are required to have. So there are no additional costs, no. Medical emergencies are largely covered, but the first €385 is money you will most likely have to pay. Bills like you see from people in the US are nonexistent for common ailments. Free day care is just a big fat no. There are subsidies for lower income families, but people complain about the cost of day care a lot.

[@Never_again_against_anyone]

Day care is not generally free in my country. In some places it is, but in most the cost depends on the parents' income. If they are poor enough the day care might be free, if not, it won't. But it is subsidized and affordable. If it is a good deal in terms of quality for the money is a whole other question, though.

[@jsebby2284]

It's not free. It's paid for with taxes

[@Never_again_against_anyone]

@@jsebby2284 You really think people are not aware of the difference? It is just being a bit of laziness in expressing oneself...

[@jsebby2284]

@tanbivo9424 I genuinely think that yes. But if that's not the case for you then all good haha. I still believe it's something that needs to be pointed out if you're just going to use free as an argument though

[@nathanielcarreon5634]

This happens when their ego is more important than financial common sense.

[@susanclaire901]

Toyotas forever! I'm on my 3rd now (no car note).

[@sunso1991]

The thing about car payment is different if you can get zero interest rate. My sister got her honda in 2020 july for $14000 and was offered 6 year at 0 rate.

[@mlhundt2064]

Did not buy my first "new" car until I was 42. It was nice because I was able to qualify for a first time buyer discount. :-)

[@chrisfreeman4876]

WIsh more would concentrate on horrible student loan debt. I am called an old man or its a tropism when I tell people to pay for their own college. I worked full time for my undergrad, chose a responsible major, and paid for my Master degrees and doctorate on my own. So not saying higher education is bad, just probably 75% of the majors and/or GPAs are bad and people should not be going into debt for that. Undergrad is not that hard, get off your rear, join the military and/or work your rear off to minimize these life destroying loans colleges try to push on you. Colleges are there to collect money no matter what lies they need to tell 18 year old to do it.