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It's great to hear you're enjoying the fruits of your hard work! Enjoying new cars is a personal choice, especially when you've planned financially for it.
I agree that you should always buy a new car...for safty reason. My parents alway buy used car and it was quite dangerous that it often broke down. BUT Car can really cost a lot. The fuel cost, the maintenance cost, insurance cost can all add up. I did not own a car for last 25 years. I took bus and subway to work. If I had a car for last 25 years, I think my portfolio would be at least half-million less. Not to mention that I was never involved in any car accident over last 25 yesrs.
Yes but he should have inherited billions of dollars. What is talking about is the miracle of compound interest. Whether you're paying it or getting it. Buying stuff on twenty eight percent interest credit cards is a money killer. And buying cars that depreciate as you move is a money killer.
If not managed well even great wealth disappears. Some end up homeless on the street. Learn to manage your life incl money and health. For 99.999% in the world future freedom and security take effort.
I have only bought one car I ever made payments on in my life. It is a 1987 Chevy pickup with a small block V-8. It has over 303,000 miles on it. It still has the original alternator and the transmission has never needed work besides changing the fluid and filter. I rebuilt the engine myself and it runs great. I bought it in 1991 and I will never sell it. I also have a 1966 Thunderbird, a 94 Lincoln and a 91 Dodge. Everything I own including my house and a travel trailer is paid for. That's what works for me.
I buy new cars and keep them 10 years minimum. I bought used a few times and spent more in repairs. I know everything my vehicles have required since new. Kept up on scheduled maintenance and never abused them. Paid my Gladiator off in 13 months. Been car payment free for last 3 years. I won’t sell it. Just replace things as they break.
You've really got your car game figured out! Keeping them for a decade and staying on top of maintenance is smart. Plus, paying off your Gladiator that fast is impressive. Goes to show there's no one-size-fits-all approach to cars, right?
I think the smartest thing to do is to buy a newish car, car with very low or no mileage that however cost much much less than a new one because technically it is used. Such cars can cost 10-30% less but are still kind of new from maintenance point if view. New cars are very expensive and not always the cost you pay reflect what the car is actually worth.
I partly agree on the used cars advice. Just be EXTREMELY careful when looking for a used vehicle. Several states lemon laws DON'T cover used vehicles. So if you end up with a lemon then you're still screwed with BOTH a car payment AND constant vehicle repairs
@user-bm6wu9zw9m, many feel the same way. The excitement of a new car fades, but the payments don't. Next time, a pre-owned vehicle might offer a sweet spot-less depreciation, more value for your money.
Good advice mostly but the attack on IKEA was not fair, My experience is the direct opposite, It will save you a ton of money most stuff I bought there since several decades I still have
And do you really wanna look at the same furniture for decades. I bought expensive furniture in my first home, but got tired looking at it after 15 years. In my new home almost everything is IKEA, partly because of the pandemic and they had easy online shopping
Glad to hear you've had a positive experience with IKEA! It's important to remember that everyone's experience can vary, and finding value in what we purchase is key.
@Tom-sg4iv the whole idea is to discipline yourself, not get tired of it. Be grateful for what you have not what you don't have I get your thinking but in the long run you will have much more money saved and invested if you're not always changing stuff out for newer a lot of people try to keep up with the Joneses or fall for marketing tactics. The generations of the past would hold on to good quality stuff forever and retire with very large nest eggs
@@Tom-sg4iv We bought 2 slipcovered sofas in 1990 from Macy's. They're covered in a tough cotton drill fabric about the weight of denim but a neutral shade. Here we are in 2024 and they're still in our living room, comfy as can be, in good shape and hopefully they'll still be around for many years to come. If you use a neutral fabric with a plain style of couch you won't mind looking at it. A couch is a couch.
Another top drawer information. Many Thanks. Appreciate these contents..!!! 100% agree with IKEA crap. I always go for quality over quantity and they last forever.
Interesting though.. my furniture are 90% bought from IKEA. Moved home 3 times in the past 4 years, and the only thing we replaced was a sofa, but everything else stayed in good shape even after 3 home moves. But the video itself is great, I totally agree with all the points mentioned, other than slightly disagree with the IKEA example.
You're absolutely right! Generational wealth can be difficult to sustain, and the Vanderbilt family is a prime example of that. It's important to have a solid financial plan in place to ensure that wealth lasts for future generations.
I think the more important question is to ask yourself: "what is all this money I worked so hard is for?" The reason you accumulated those money is more important than just earning more money for the sake of earning more money. Eg: Is having 10 million in your account on your deathbed more important than spending that 10 million on things that you want when you are alive and healthy? What is the goal of your financial planning? Is it reinvestment for the sake of only getting more profit or is it for future betterment of your life and enjoying the fruits that comes with having a certain amount of income? It is quite nonsense to me that i need to earn more for the sake of earning more instead of spending those money on yourself when it is evident you have more than 90% of the population...
The thing is that you need to find the right balance between increasing your wealth and spending money. If I would start spending money for everything I want I would go down a dangerous spiral leading to being broke till I die. In my case, right now I am renting a place and investing money I would like to use to buy a house in 10 years. In my plan mortgage rate should be lower than my current rent and allow me to improve my lifestyle and increase the money I can invest per year. So, over the years I want to see an improvement in both my lifestyle and my wealth but for that to happen I need to manage my money wisely.
I never had any issue with IKEA furnitures but to be fair I only purchased bed, wardrobe, drawers and desk + chair. They have amazing return policy, customer service and their instructions are really detailed and easy to understand. I really trust and like their brand but to be honest I would never buy a kitchen from IKEA. I think you can get better and more solid kitchen furnitures from other stores.
I purchased a new Honda Civic Del Sol in 1993 and still drive it daily. Yes, multiple repairs and replacements over the years, however I enjoy doing routine maintenance on the vehicle myself. Same approach concerning household items. Sounds boring but I am completely out of debt!
Absolutely, those are wise guidelines for making such a big purchase! It really underscores the importance of thinking long-term and avoiding unnecessary debt. Thanks for sharing!
One rule: Don't spend beyond your means or spend on something that will.make you spend beyond your means. But enjoy your life now to the fullest as long, spend on something that will make you happy and contentented as long as you do not spend beyond your means.
I'm rich and this video will keep you poor. What the heck is being rich for? Exactly so you can buy all of these things without caring. The main reason I wanted to be rich is so I didn't HAVE to care about money (not apathy towards money itself, just material things/services it can buy). My parents always bickered and fought over money. "Don't use so many paper towels!" "I need those coupons!" "Aluminum foil is expensive!" "Turn the heat down, you're heating the whole neighborhood!" - no...that's a stupid way to live. Get rich, and spend it. Just make sure that you can replenish what you spend. And if you can't figure out how to get rich, THEN apply this video to your life.
It's great to hear you've found financial freedom and understand the importance of not stressing over money. However, this video aims to help people build and manage wealth responsibly, so they can achieve their own version of financial security and freedom. Remember, the journey to wealth and how it's utilized can vary greatly from one person to another.
Hardest part of quality of quantity is how to tell if something is quality. But dayum, I'm sure most people in the world would never think a 1.5 million inheritance is a pittance, no matter how much wealth it was before.
Figuring out what's really quality can be tricky but reading reviews online helps a lot and yeah, most folks would be over the moon with a 1.5 mil inheritance but it could have been 1,000x that!
I know lots of rich people. None of them buy used cars. They typically get a new car every two years. Why? Because their time is their most valuable commodity. They can't afford to waste time bringing an old car to a mechanic. If they have a meeting to go to they need a reliable vehicle that won't cause them to be late.
You make a valid point about the importance of time and reliability for those who are well-off, and why some might choose new cars. Our video, however, was geared towards illustrating the economic perspective of car ownership and how avoiding new car depreciation can contribute to financial savings, which is an alternative approach to managing one's assets.
Agreed, sort of. Time is money for sure and spending time on repair shops or spending the weekend fixing a car or waiting on a tow truck on the side of the road is wasted time. But I know upper class (not rich) people and they don't buy new cars that often. They do buy new cars, not used, but they keep them for 7-10 years. And when I visit the rich part of my state (about 20 miles from me) I see cars that are 5-10 years old but in very good condition.
Car repairs in somewhere like california can be much more expensive than the depreciation on a new car. For example. New car 30k. Keep 5 years. Sell for 15k. If repair costs more than 3k per annum, new is cheaper.
warranties on printers, laptops and some desktop units (iMacs) worth it. Pro computer tech here, made claims, and stores like Micro Center sell hardware at cost so if you want vendor to remain in business…. Good advice overall
A warranty on an expensive computer doesn't sound like a bad idea if the manufacturer warranty doesn't offer much or long lasting coverage. Thanks for sharing your thoughts!
The new cars vs. old advice should not be not “one size fits all”. Some cars lose their value faster. Some hold their value better, which makes them more expensive if you want to buy one gently used. The post-pandemic inflation made it even more weird when used car prices inflated even more than new, driven by consumer demand. It’s more prudent to compare total cost of ownership of a used car vs. a new car than just a listed price tag. It depends what kind of deal and financing you can get. I’ve seen cases when a brand new car cost came pretty close to a decent used one once you factor the cost of financing.
It's essential to consider total ownership costs, including depreciation and financing, to make an informed decision. Each situation is unique, especially with recent market fluctuations. Thanks for sharing your insights!
Home repair warranties definitely have their drawbacks, especially with the delays. It's understandable why many opt for immediate fixes on their own or through external services.
They lost it by wasting enormous amounts of money such as building enormous houses all across the country and trying to spend their way into acceptance by other rich families. However, the video focused on wasteful spending, not specifically on how the Vanderbilts went broke. But, thanks for watching!
The depreciation on a new car is about 300 to 500 per month (more for luxury). If repair costs are greater, buying new is cheaper. You also need to consider the hassle factor. Areas like california or new york I am sure repair costs are very high
None of the wealthy people I know buy used cars ( for their daily driver). I buy new keep them for 10 plus years and buy the extended warranty immediately upon purchase ( the cost is equivalent to a brake job which will be needed).
While new cars come with long-lasting warranties, owning a car for 10 years usually means facing some repairs, except perhaps with Toyota or Honda, which are renowned for their reliability.
While a $4K premium on a new car might not impact a wealthy person significantly, many of them maintain their wealth through a disciplined approach to spending, avoiding wastefulness even on seemingly minor amounts
I do disagree a bit about IKEA though, I’ve bought some solid and stylish stuff from there that’s lasted years. However, I probably wouldn’t buy a bed, new kitchen or sofa from there 😊
It's awesome to know you've had success with some of IKEA's offerings. I totally get the hesitation on the bigger items - it's important to choose what works best for you.
I'm not historian but something is telling me Vanderbilt didn't lose their fortune because they bought new cars instead of used cars or because they ate out instead of making their own food....
He inherited much more than that. Mostly in trusts and in real estate and art and other non cash items. He also probably makes 10-15 million a year at cnn
That’s true but in my case if you’re grandkids are like mine and these newer generations of kids I would rather splurge it on myself and wife going on a fabulous boat cruise nowadays kids are so ungrateful and think that they are entitled to someone else’s wealth 😢
I think you need to define rich. To me you are talking about the middle upper class. People that make a combined net income of $200k a year. Your avoidance is not even an issue for the truly wealthy: People that net $500k or more.
What one person considers "rich" may differ significantly from another's view. We'll explore these varying perspectives on wealth in our future discussions!
This strategy of using a trust or business for home ownership is a savvy financial move. It transforms regular upkeep costs into deductible business expenses, providing a tax-efficient way to maintain the property. It's a testament to the importance of strategic financial planning in managing personal assets.
Your video information is very similar to Robert Kiyosaki and his Rich Dad Poor Dad company products. Everyone should only buy income earning assets and not by money losing liabilities. 😆
The earlier you start buying liabilities and getting debt the harder it is to get rich later and stop worrying about costs. I am a European and to me one of the worst thing about the US is the student debt, the idea that you might enter the workforce (if you manage to) with a debt of 150,000 USD, an amount that in some european places you could spend to buy a house. Getting rich starting from zero is one thing but starting from -150,000 is nearly impossible and if you also live on rent and need a car to go to work good luck paying off your debt and forget getting rich 😅😅😅
The story of the Vanderbilts serves as a fascinating introduction to the broader topic of spending habits among the wealthy. It's interesting to see how perspectives on what constitutes a 'ridiculous' purchase can vary greatly depending on one's financial philosophy and values.
Vanderbilts had billions and with poor spending they ended up having barely a million. In the same way, a normal person could destroy his financed by puchasing a brand new car he can’t afford. So there is an anology there. Sad part is Vanderbilts’ ended up having 1.5 million because they wasted money but started from billions, while for a regular person it takes much less to get into financial troubles and troubles can lead to actual poverty.
This is not how you get rich lmao maybe if you wanna get rich in 30-50 years you don’t get rich by saving 500 dollars a month you get rich by making more and more money don’t ever cheap out on food and memories never don’t matter you are not gonna get rich by saving 50 bucks trust me the way to be rich is by adding more money to your monthly gross don’t cut back in anything make more money and invest as well into stocks or whatever you like but don’t be cheating out on food god knows if you will even make it to your 30’s 40’s and then you pass away Tryna save 50-100 bucks not eating that good meal please don’t do that dumb shit nobody that is rich gives a fuck about none of this only thing I agree is dont finance a car and don’t get into credit debt other than that the rest you can manage and still invest just make more money simple !
Remember, the video wasn't titled "How to get rich." It focuses on avoiding wasteful spending. It's true that simply saving small amounts isn't typically a fast track to wealth; earning more and smart investing are key components. Yet, it's also about balance-being mindful of spending without sacrificing quality of life. Investing in experiences and good food, while also avoiding debt and making wise financial decisions, can contribute to a rich life in more ways than one.
He wasn't appointing buying cheap food. Indeed it is very important to rely on GOOD food. But going out for dinner doesn't make the food better (more often the food is worse than self cooked) but the price is much much higher.
This video offers basic financial knowledge, but says nothing avout when and how the Vanderbilts lost their money. If you're rich as hell (and the commodor was that rich) buying a car is like bying chewing gum. It seems to me that the mistake they made was to divide their fortune among to many descendents, rather than making poor financial decisions.
The mention of the Vanderbilts was really just to spotlight the bigger picture: how generational wealth survives by dodging certain financial missteps, not to dive deep into their history. It's all about the choices we make between appreciating assets and fleeting expenses to keep that wealth rolling through generations.
@@BlueChipMindset The question why they lost their generational wealth still remains unanswered. It might be necessary for a wealthy family to produce outstanding business people, inventors, artists and attract those into their circle who bring more than just money. Finding out how people stay wealthy is a much bigger challange than finding out how they aquired their fortune in the first place, especially because the first step is far easier, but the second gets much less attention.However, it's much more challenging.
Why become rich when the money is not used on yourself to enjoy and you die with millions in your account?? So you can be remembered as the stupid millionaire that worked so hard to earn money but live like the beggar on the street his whole life???
It's all about finding a balance between saving for the future and enjoying life now. Wealth should enable us to live fulfilling lives, not just accumulate in our accounts. It's important to invest in experiences that bring joy, ensuring we live richly in all ways, not just financially.
@@BlueChipMindset I’m not trying to be snarky, but perhaps a better title for this video would have been, “Seven tips to save money.” As just one example (of several possible) is that most “rich” people don’t care about a car’s depreciation. Being “rich” means you don’t worry about a car’s expense, or flying first class, or the cost of groceries, or restaurant bills, or hotel costs, etc. Of course there are always random “rich” people who are eccentrically frugal, but they don’t define the class, they are the exceptions. People saving money to more rapidly build a nest egg do the things you suggest. These are facts.
The thing is billionaires like Bills Gates, Jeff Bezos and Elon Musk don’t care about brand new cars vs used cars because to them car depreciation don’t make a difference. However, those billionaires were very frugal before getting rich, they were not wasting money here and there and were very careful with money. And working in a multinational company I know that yes, after getting rich those people spend a lot on things they don’t need, but their companies are doing outsourcing, downsizing departments and changing supply routes all the time to save money on taxes, employees and don’t be pushed out of business. So, at the end before being rich you need to save money on everything and when you are at the top you still need to save money to keep being rich, only you don’t save them on a car but on other things.
@@enlilannunaki9064 well, rich people before getting rich they do observe rules described in the video. After getting rich they do not of course and they can have a very expensive lifestyle and waste money over unnecessary things but they still value and save money. I met rich people, either landlords or business owners with fancy cars, even Ferrari, and so I know what I am talking about and have a clue about what it is like to be rich. I also know rich people who are very frugal but they are the exception. The video is more about how to get rich starting from zero and if no money but of course if you get to make a million a year or more this video is not for you. By the way good for you that you know what is it to be rich and you bother replying to a poor guy like me :)
Manufacturers dont manufacture used cars though. And at times you want new cars as it’s worry free. I bet this dude advising all of these is as flat broke as the most (owing to high cost of living).
Avoiding unnecessary costs isn't being a cheapskate; it's smart money management. By strategically cutting back on superfluous expenses, we can allocate our resources more effectively towards achieving financial goals and securing a more stable financial future.
Are there any other expenses not mentioned in the video that you believe wealthy people avoid?
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I’m pretty well off
I always buy new cars, so what I enjoy them
I worked my whole life and saved my money
Now I enjoy it.
It's great to hear you're enjoying the fruits of your hard work! Enjoying new cars is a personal choice, especially when you've planned financially for it.
I agree that you should always buy a new car...for safty reason. My parents alway buy used car and it was quite dangerous that it often broke down.
BUT Car can really cost a lot. The fuel cost, the maintenance cost, insurance cost can all add up. I did not own a car for last 25 years. I took bus and subway to work. If I had a car for last 25 years, I think my portfolio would be at least half-million less. Not to mention that I was never involved in any car accident over last 25 yesrs.
1.5 million is nothing to spit on. He inherited more than most of us inherit.
True, but very little from the wealthiest man on earth
@@BlueChipMindset It took a few generations to blow through all of that money. I feel no sadness for them. Anderson doesn't suffer one bit.
Yes but he should have inherited billions of dollars. What is talking about is the miracle of compound interest. Whether you're paying it or getting it. Buying stuff on twenty eight percent interest credit cards is a money killer. And buying cars that depreciate as you move is a money killer.
Or earn in a lifetime….
If not managed well even great wealth disappears. Some end up homeless on the street. Learn to manage your life incl money and health. For 99.999% in the world future freedom and security take effort.
I have only bought one car I ever made payments on in my life. It is a 1987 Chevy pickup with a small block V-8. It has over 303,000 miles on it. It still has the original alternator and the transmission has never needed work besides changing the fluid and filter. I rebuilt the engine myself and it runs great. I bought it in 1991 and I will never sell it. I also have a 1966 Thunderbird, a 94 Lincoln and a 91 Dodge. Everything I own including my house and a travel trailer is paid for. That's what works for me.
It's amazing how many miles you can get out of a vehicle with regular maintenance isn't it!?
Amortising the cost over a longer period, whilst keeping the vehicle maintained is a perfectly valid strategy for vehicle ownership….
Ok...your point?
I buy new cars and keep them 10 years minimum. I bought used a few times and spent more in repairs. I know everything my vehicles have required since new. Kept up on scheduled maintenance and never abused them. Paid my Gladiator off in 13 months. Been car payment free for last 3 years. I won’t sell it. Just replace things as they break.
You've really got your car game figured out! Keeping them for a decade and staying on top of maintenance is smart. Plus, paying off your Gladiator that fast is impressive. Goes to show there's no one-size-fits-all approach to cars, right?
I think the smartest thing to do is to buy a newish car, car with very low or no mileage that however cost much much less than a new one because technically it is used.
Such cars can cost 10-30% less but are still kind of new from maintenance point if view.
New cars are very expensive and not always the cost you pay reflect what the car is actually worth.
JAPANESSE cars only
I partly agree on the used cars advice. Just be EXTREMELY careful when looking for a used vehicle. Several states lemon laws DON'T cover used vehicles. So if you end up with a lemon then you're still screwed with BOTH a car payment AND constant vehicle repairs
You're right, being careful with used car purchases is essential. Varying state lemon laws can leave buyers vulnerable. Appreciate your insight!
Agreed. A new car is best because of the risks of a used car. You can get a good deal on used but often you get screwed. It's a gamble.
The Vanderbilt story is unbelievable. Such a shame...
I know, right? It's like something out of a movie!
I bought a new car a couple of years ago, never again. After a couple of months the new car feel wears off and still stuck with payments for years.
@user-bm6wu9zw9m, many feel the same way. The excitement of a new car fades, but the payments don't. Next time, a pre-owned vehicle might offer a sweet spot-less depreciation, more value for your money.
Good advice mostly but the attack on IKEA was not fair, My experience is the direct opposite, It will save you a ton of money most stuff I bought there since several decades I still have
And do you really wanna look at the same furniture for decades. I bought expensive furniture in my first home, but got tired looking at it after 15 years. In my new home almost everything is IKEA, partly because of the pandemic and they had easy online shopping
+1 Ikea has some great stuff.
Glad to hear you've had a positive experience with IKEA! It's important to remember that everyone's experience can vary, and finding value in what we purchase is key.
@Tom-sg4iv the whole idea is to discipline yourself, not get tired of it. Be grateful for what you have not what you don't have I get your thinking but in the long run you will have much more money saved and invested if you're not always changing stuff out for newer a lot of people try to keep up with the Joneses or fall for marketing tactics. The generations of the past would hold on to good quality stuff forever and retire with very large nest eggs
@@Tom-sg4iv We bought 2 slipcovered sofas in 1990 from Macy's. They're covered in a tough cotton drill fabric about the weight of denim but a neutral shade. Here we are in 2024 and they're still in our living room, comfy as can be, in good shape and hopefully they'll still be around for many years to come. If you use a neutral fabric with a plain style of couch you won't mind looking at it. A couch is a couch.
In Thailand I buy things at IKEA because the quality is so much better than elsewhere!
Glad to hear you've had luck at IKEA!
Car insurance is the number one wealth killer!!
Yes, and it seems to have been increasing monthly recently as well.
Mine is hospital bills. They’re out of control.
Another top drawer information. Many Thanks. Appreciate these contents..!!! 100% agree with IKEA crap. I always go for quality over quantity and they last forever.
Glad you like them!
Interesting though.. my furniture are 90% bought from IKEA. Moved home 3 times in the past 4 years, and the only thing we replaced was a sofa, but everything else stayed in good shape even after 3 home moves.
But the video itself is great, I totally agree with all the points mentioned, other than slightly disagree with the IKEA example.
Generational wealth never lasts. That's why the Vanderbilt family lost it all
You're absolutely right! Generational wealth can be difficult to sustain, and the Vanderbilt family is a prime example of that. It's important to have a solid financial plan in place to ensure that wealth lasts for future generations.
I think the more important question is to ask yourself: "what is all this money I worked so hard is for?" The reason you accumulated those money is more important than just earning more money for the sake of earning more money.
Eg: Is having 10 million in your account on your deathbed more important than spending that 10 million on things that you want when you are alive and healthy?
What is the goal of your financial planning? Is it reinvestment for the sake of only getting more profit or is it for future betterment of your life and enjoying the fruits that comes with having a certain amount of income?
It is quite nonsense to me that i need to earn more for the sake of earning more instead of spending those money on yourself when it is evident you have more than 90% of the population...
The thing is that you need to find the right balance between increasing your wealth and spending money.
If I would start spending money for everything I want I would go down a dangerous spiral leading to being broke till I die.
In my case, right now I am renting a place and investing money I would like to use to buy a house in 10 years.
In my plan mortgage rate should be lower than my current rent and allow me to improve my lifestyle and increase the money I can invest per year.
So, over the years I want to see an improvement in both my lifestyle and my wealth but for that to happen I need to manage my money wisely.
i consider IKEA furniture a good buy, some items are excellent others not so
Yeah it's hit or miss really with IKEA
I never had any issue with IKEA furnitures but to be fair I only purchased bed, wardrobe, drawers and desk + chair.
They have amazing return policy, customer service and their instructions are really detailed and easy to understand.
I really trust and like their brand but to be honest I would never buy a kitchen from IKEA. I think you can get better and more solid kitchen furnitures from other stores.
I purchased a new Honda Civic Del Sol in 1993 and still drive it daily. Yes, multiple repairs and replacements over the years, however I enjoy doing routine maintenance on the vehicle myself. Same approach concerning household items. Sounds boring but I am completely out of debt!
Thanks for sharing!
That's not boring!
You can buy a brand new car, if: 1. You're going to use it at least 10 years, and 2. You don't buy it with credit.
Absolutely, those are wise guidelines for making such a big purchase! It really underscores the importance of thinking long-term and avoiding unnecessary debt. Thanks for sharing!
One rule: Don't spend beyond your means or spend on something that will.make you spend beyond your means. But enjoy your life now to the fullest as long, spend on something that will make you happy and contentented as long as you do not spend beyond your means.
Well said, and thanks for watching!
I'm rich and this video will keep you poor. What the heck is being rich for? Exactly so you can buy all of these things without caring. The main reason I wanted to be rich is so I didn't HAVE to care about money (not apathy towards money itself, just material things/services it can buy). My parents always bickered and fought over money. "Don't use so many paper towels!" "I need those coupons!" "Aluminum foil is expensive!" "Turn the heat down, you're heating the whole neighborhood!" - no...that's a stupid way to live. Get rich, and spend it. Just make sure that you can replenish what you spend. And if you can't figure out how to get rich, THEN apply this video to your life.
It's great to hear you've found financial freedom and understand the importance of not stressing over money. However, this video aims to help people build and manage wealth responsibly, so they can achieve their own version of financial security and freedom. Remember, the journey to wealth and how it's utilized can vary greatly from one person to another.
Hardest part of quality of quantity is how to tell if something is quality. But dayum, I'm sure most people in the world would never think a 1.5 million inheritance is a pittance, no matter how much wealth it was before.
Figuring out what's really quality can be tricky but reading reviews online helps a lot and yeah, most folks would be over the moon with a 1.5 mil inheritance but it could have been 1,000x that!
1. This is a normal car. An EV would loose 40% within the first year, and be scrap value after 5
I couldn’t have said it better
Buy a very good new car. Look after it and maintain it for 25 years. Still come out ok.
I need your help finding a 2019 Tesla for under $10,000. (or whatever you consider “scrap”)
Very true, thanks for watching!
@@leonadams1053 Try Hertz, they are dumping all their Teslas and Polestar. Way too expensive to operate.
I know lots of rich people. None of them buy used cars. They typically get a new car every two years. Why? Because their time is their most valuable commodity. They can't afford to waste time bringing an old car to a mechanic. If they have a meeting to go to they need a reliable vehicle that won't cause them to be late.
You make a valid point about the importance of time and reliability for those who are well-off, and why some might choose new cars. Our video, however, was geared towards illustrating the economic perspective of car ownership and how avoiding new car depreciation can contribute to financial savings, which is an alternative approach to managing one's assets.
Agreed, sort of. Time is money for sure and spending time on repair shops or spending the weekend fixing a car or waiting on a tow truck on the side of the road is wasted time. But I know upper class (not rich) people and they don't buy new cars that often. They do buy new cars, not used, but they keep them for 7-10 years. And when I visit the rich part of my state (about 20 miles from me) I see cars that are 5-10 years old but in very good condition.
Or it’s a tax write off for them so why not?
Car repairs in somewhere like california can be much more expensive than the depreciation on a new car. For example. New car 30k. Keep 5 years. Sell for 15k. If repair costs more than 3k per annum, new is cheaper.
$50 for a meal out? Not eating at that restaurant.
I guess you haven't seen the price of steak lately? Ridiculous...
It's a burger and a beer in Tate Modern, London. You want fries? That's extra! Next time, I'm taking a sandwich!!
good advice in general. But pretty sure it wasn't Disney plus subscription that ruined Vanderbilts
Actually, my latest video is all about what ruined them, check it out!
The only expense rich people avoid is taxes.
warranties on printers, laptops and some desktop units (iMacs) worth it. Pro computer tech here, made claims, and stores like Micro Center sell hardware at cost so if you want vendor to remain in business…. Good advice overall
A warranty on an expensive computer doesn't sound like a bad idea if the manufacturer warranty doesn't offer much or long lasting coverage. Thanks for sharing your thoughts!
The new cars vs. old advice should not be not “one size fits all”. Some cars lose their value faster. Some hold their value better, which makes them more expensive if you want to buy one gently used. The post-pandemic inflation made it even more weird when used car prices inflated even more than new, driven by consumer demand.
It’s more prudent to compare total cost of ownership of a used car vs. a new car than just a listed price tag. It depends what kind of deal and financing you can get. I’ve seen cases when a brand new car cost came pretty close to a decent used one once you factor the cost of financing.
It's essential to consider total ownership costs, including depreciation and financing, to make an informed decision. Each situation is unique, especially with recent market fluctuations. Thanks for sharing your insights!
Home repair warranties are terrible. If you have a repair the lead time is outrageous. You'll end up fixing it yourself or hiring someone else.
Home repair warranties definitely have their drawbacks, especially with the delays. It's understandable why many opt for immediate fixes on their own or through external services.
"This way, you're not throwing money at a problem that might not ever exist." Sounds like required insurance.
Pretty much!
If you can prove you have enough money to cover any damages in cash you don't have to buy car ins.
The secret to wealth: Don’t let lifestyle inflation creep up on you. Save those raises!
Exactly!
And not buying a $50 Stanley cup for each member of the family
Exactly, that fad needs to stop for sure!
Ah, poor Anderson......only 1.5 million $$. Off to the Poorhouse you go.
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I don’t think the Vanderbilt family lost their fortune due to new cars. 😂
They lost it by wasting enormous amounts of money such as building enormous houses all across the country and trying to spend their way into acceptance by other rich families. However, the video focused on wasteful spending, not specifically on how the Vanderbilts went broke. But, thanks for watching!
Silly to start with Vanderbilt.
I have a full video about their story coming soon. Stay tuned...
New cars can be cheaper than used under certain circumstances, especially in areas with high labour costs (repairs).
I've never heard that reasoning before, but then again, I haven't been to every corner of the world, so it may be the case in certain parts.
For example, the check engine light came on on my wife's car, and she was quoted €5000 for repairs.
The depreciation on a new car is about 300 to 500 per month (more for luxury). If repair costs are greater, buying new is cheaper. You also need to consider the hassle factor. Areas like california or new york I am sure repair costs are very high
this is so true
1.22 I’m sure every financial services type or equivalent was trying to rinse the Vanderbilts of their wealth from the get go
I have a video about them coming next week. Stay tuned...
None of the wealthy people I know buy used cars ( for their daily driver). I buy new keep them for 10 plus years and buy the extended warranty immediately upon purchase ( the cost is equivalent to a brake job which will be needed).
While new cars come with long-lasting warranties, owning a car for 10 years usually means facing some repairs, except perhaps with Toyota or Honda, which are renowned for their reliability.
A new car with a $4K premium isn’t going to break a wealthy person.
While a $4K premium on a new car might not impact a wealthy person significantly, many of them maintain their wealth through a disciplined approach to spending, avoiding wastefulness even on seemingly minor amounts
I do disagree a bit about IKEA though, I’ve bought some solid and stylish stuff from there that’s lasted years. However, I probably wouldn’t buy a bed, new kitchen or sofa from there 😊
It's awesome to know you've had success with some of IKEA's offerings. I totally get the hesitation on the bigger items - it's important to choose what works best for you.
I wouldn't mind inheriting 1.5 million!
For sure, but that's less than .001% of what he could have gotten.
i feel the video forgets "vices" as well? gambling, alcoholism, etc...
Yes, those factors can definitely be detrimental to building and maintaining wealth. Thanks for your input!
I'm not historian but something is telling me Vanderbilt didn't lose their fortune because they bought new cars instead of used cars or because they ate out instead of making their own food....
I'm working on a video about them in full, stay tuned...
He inherited much more than that. Mostly in trusts and in real estate and art and other non cash items. He also probably makes 10-15 million a year at cnn
Yes, he has done well for himself even though his family burned through almost all of the family's wealth.
The one MEGA Expense forced upon us all.... INFLATION! :-( AND... a second MEGA Expense forced upon most of us... TAXES! :-(
For sure! Thanks for watching.
Last time I got a pay raise I used the money to buy Gold bullion. It may never benefit me bur it will see the grand kids through Uni.
That’s true but in my case if you’re grandkids are like mine and these newer generations of kids I would rather splurge it on myself and wife going on a fabulous boat cruise nowadays kids are so ungrateful and think that they are entitled to someone else’s wealth 😢
Sadly I think your right. I'll take my other half on a cruise around Alaska. @@mikethompson3534
Gold will never go to zero that's for sure!
OK. Don't forget to try the world's tastiest salmon when your ashore.
Great graphics!
Glad you like them!
I think you need to define rich. To me you are talking about the middle upper class. People that make a combined net income of $200k a year. Your avoidance is not even an issue for the truly wealthy: People that net $500k or more.
What one person considers "rich" may differ significantly from another's view. We'll explore these varying perspectives on wealth in our future discussions!
I couldn’t have said it better
Thanks for watching!
They put their houses in a trust or business so that anything they do to the house is an expense. Cutting the grass or painting the house
This strategy of using a trust or business for home ownership is a savvy financial move. It transforms regular upkeep costs into deductible business expenses, providing a tax-efficient way to maintain the property. It's a testament to the importance of strategic financial planning in managing personal assets.
Why does the girl in the thumbnail have two right arms?
I only see left arms, good eye though!!
Your video information is very similar to Robert Kiyosaki and his Rich Dad Poor Dad company products. Everyone should only buy income earning assets and not by money losing liabilities. 😆
Ever read his book, "'Rich Dad, Poor Dad?" It's is a must-read for everyone, and it's best to experience its lessons early in life."
The earlier you start buying liabilities and getting debt the harder it is to get rich later and stop worrying about costs.
I am a European and to me one of the worst thing about the US is the student debt, the idea that you might enter the workforce (if you manage to) with a debt of 150,000 USD, an amount that in some european places you could spend to buy a house.
Getting rich starting from zero is one thing but starting from -150,000 is nearly impossible and if you also live on rent and need a car to go to work good luck paying off your debt and forget getting rich 😅😅😅
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Starting the Vanderbilts and transitioning to a person who would buy a $40,000 car is the most ridiculous thing I've seen lately.
The story of the Vanderbilts serves as a fascinating introduction to the broader topic of spending habits among the wealthy. It's interesting to see how perspectives on what constitutes a 'ridiculous' purchase can vary greatly depending on one's financial philosophy and values.
Vanderbilts had billions and with poor spending they ended up having barely a million.
In the same way, a normal person could destroy his financed by puchasing a brand new car he can’t afford.
So there is an anology there. Sad part is Vanderbilts’ ended up having 1.5 million because they wasted money but started from billions, while for a regular person it takes much less to get into financial troubles and troubles can lead to actual poverty.
This is not how you get rich lmao maybe if you wanna get rich in 30-50 years you don’t get rich by saving 500 dollars a month you get rich by making more and more money don’t ever cheap out on food and memories never don’t matter you are not gonna get rich by saving 50 bucks trust me the way to be rich is by adding more money to your monthly gross don’t cut back in anything make more money and invest as well into stocks or whatever you like but don’t be cheating out on food god knows if you will even make it to your 30’s 40’s and then you pass away Tryna save 50-100 bucks not eating that good meal please don’t do that dumb shit nobody that is rich gives a fuck about none of this only thing I agree is dont finance a car and don’t get into credit debt other than that the rest you can manage and still invest just make more money simple !
Remember, the video wasn't titled "How to get rich." It focuses on avoiding wasteful spending. It's true that simply saving small amounts isn't typically a fast track to wealth; earning more and smart investing are key components. Yet, it's also about balance-being mindful of spending without sacrificing quality of life. Investing in experiences and good food, while also avoiding debt and making wise financial decisions, can contribute to a rich life in more ways than one.
He wasn't appointing buying cheap food. Indeed it is very important to rely on GOOD food.
But going out for dinner doesn't make the food better (more often the food is worse than self cooked) but the price is much much higher.
This video offers basic financial knowledge, but says nothing avout when and how the Vanderbilts lost their money. If you're rich as hell (and the commodor was that rich) buying a car is like bying chewing gum.
It seems to me that the mistake they made was to divide their fortune among to many descendents, rather than making poor financial decisions.
The mention of the Vanderbilts was really just to spotlight the bigger picture: how generational wealth survives by dodging certain financial missteps, not to dive deep into their history. It's all about the choices we make between appreciating assets and fleeting expenses to keep that wealth rolling through generations.
@@BlueChipMindset
The question why they lost their generational wealth still remains unanswered.
It might be necessary for a wealthy family to produce outstanding business people, inventors, artists and attract those into their circle who bring more than just money. Finding out how people stay wealthy is a much bigger challange than finding out how they aquired their fortune in the first place, especially because the first step is far easier, but the second gets much less attention.However, it's much more challenging.
Frankly, I’d watch a video that analyzes how the fortune disappeared, in detail.
@@edsanville
The answer given were not clear.However, frankly, there's a lot more to the subject than just general saving tips.
Why become rich when the money is not used on yourself to enjoy and you die with millions in your account?? So you can be remembered as the stupid millionaire that worked so hard to earn money but live like the beggar on the street his whole life???
It's all about finding a balance between saving for the future and enjoying life now. Wealth should enable us to live fulfilling lives, not just accumulate in our accounts. It's important to invest in experiences that bring joy, ensuring we live richly in all ways, not just financially.
I don’t think you know as much as you think you do about “the rich.”
I appreciate your opinion, but I respectfully disagree and thanks for watching and dropping your thoughts.
@@BlueChipMindset
I’m not trying to be snarky, but perhaps a better title for this video would have been, “Seven tips to save money.”
As just one example (of several possible) is that most “rich” people don’t care about a car’s depreciation. Being “rich” means you don’t worry about a car’s expense, or flying first class, or the cost of groceries, or restaurant bills, or hotel costs, etc. Of course there are always random “rich” people who are eccentrically frugal, but they don’t define the class, they are the exceptions.
People saving money to more rapidly build a nest egg do the things you suggest.
These are facts.
The thing is billionaires like Bills Gates, Jeff Bezos and Elon Musk don’t care about brand new cars vs used cars because to them car depreciation don’t make a difference.
However, those billionaires were very frugal before getting rich, they were not wasting money here and there and were very careful with money.
And working in a multinational company I know that yes, after getting rich those people spend a lot on things they don’t need, but their companies are doing outsourcing, downsizing departments and changing supply routes all the time to save money on taxes, employees and don’t be pushed out of business.
So, at the end before being rich you need to save money on everything and when you are at the top you still need to save money to keep being rich, only you don’t save them on a car but on other things.
@@hellboy0189
Two comments:
1. Your comment about corporations has nothing to do with the video.
2. You have no idea what it is to be rich.
@@enlilannunaki9064 well, rich people before getting rich they do observe rules described in the video.
After getting rich they do not of course and they can have a very expensive lifestyle and waste money over unnecessary things but they still value and save money.
I met rich people, either landlords or business owners with fancy cars, even Ferrari, and so I know what I am talking about and have a clue about what it is like to be rich.
I also know rich people who are very frugal but they are the exception. The video is more about how to get rich starting from zero and if no money but of course if you get to make a million a year or more this video is not for you.
By the way good for you that you know what is it to be rich and you bother replying to a poor guy like me :)
So billionaires stay home and make macaroni and cheese? What a stupid clip
Never once was it said or implied that billionaires stay home and make mac n cheese but thanks for watching and dropping a comment!
Manufacturers dont manufacture used cars though. And at times you want new cars as it’s worry free. I bet this dude advising all of these is as flat broke as the most (owing to high cost of living).
You're going to pay a premium for 'worry free' but to each their own. Thanks for watching.
In other words, be a cheap skate.
Yes
Avoiding unnecessary costs isn't being a cheapskate; it's smart money management. By strategically cutting back on superfluous expenses, we can allocate our resources more effectively towards achieving financial goals and securing a more stable financial future.