I have no debt. I pay off my credit cards every month. I drive a ten year old truck. I wear jeans and a T-shirt. All my tech is old and I carry a flip phone. I have a financial planner. My nightclub is my workshop where I have a couple of cold ones while cleaning up after maintaining my vehicles, equipment, and tools Joe just made me realize I’m a financial genius. Thanks Joe!
Yep. We are kindred spirits .I wear coveralls almost exclusively which I buy new form a few op shops that take in ex company clothing and at $ 10 to $ 20 a hit they are dirt cheap . All of my vehicles are maintained by me because they are all low tech and on historic registration so the 6 added up together do not cost as much as a green slip for just one of them . I can sew and occasionally do make some clothing if I come across some fabric I really like & it is cheap enough . So now I have some thing that most never attain, I have my own style . Like you I spend a lot of time in the garage often with others who come around to borrow tools, do some machining or get help with those awkward 2 person jobs . No alcohol in the workshop but there is a dripolater ( remember them ) and a fridge full of finger food so we have a good time . Finally got serious about the garden so it is a case of "if I don't grow it I don't eat it with the exception of the food swapped with other fellow gardeners and I am Don Bourke in the garden ( LAZY ) . Like you my tech is old usually bought either ex lease or from liquidators when a business goes bust , and the kitchen appliances were all bought the same way . Amazing what the liquidators will pop into a box & call " lunchroom items " For various health reasons I have not done much work since 2019 and find I can live quite well on my franking credits alone while the dividends accumulate in a DRP to hopefuly over take the money I had to borrow when I split with my partner .
Like the comment above mine, I retired early, home paid for, two cars both paid for. I have never had a credit card, don't have any debts. Invest in a private pension as well as the State pension, work hard, save as much as you can over your working life. Don't get into debt for that holiday abroad every year and don't try and keep up with the Jones's. They will probably be up to their necks in debt as well. I grew up in a working class family and remember the words of my Grand Parents ; Never a lender or a borrower be. Live within your means, if you can't afford it, save up and buy it with your own money. There's more to life than money.
You have just described the story of my life. Happily retired early and my only problem now is making sure I spend all my wealth before I pass on. Everything you said used to be common sense!
See, I don't understand spending everything before I pass on I'd wanna have someone in my life, most people would have kids, they could leave the money to BUT before doing that, make sure they are financially literate as well, so the money can keep growing even after you're gone
When I was 20, I bought a used clunker Toyota for next-to-nothing and started to put a 'car payment' into a bank account. 2 years later, I bought my first new car and paid cash. Every month since then, I put a car payment into the bank for my next vehicle. I never paid interest on a loan but earned interest at the bank.
For me "freedom from financial disaster" is my equivalent of "rich." When I was younger a mechanical problem with the vehicle could be a catastrophe. Or an appliance crapping out. Now I get the car fixed and replace the appliance. Less stress has me feeling good.
Thanks Joe. This simple common sense means a lot coming from you. Your credibility make this advice special. Looking forward to any more you have to share.
Don’t get into debt esp credit card debt Don’t by overpriced cars Don’t buy overpriced brands Don’t buy every new tech gadget Don’t drink excessively Don’t forget to invest
I often hear the argument that driving a fancy big car gives you comfort at driving, my argument is that for every hour of comfort in the car, you have to sit one day more at work, paying for the comfort
@@meilinchan7314 Sort of true, you still have to pay, but I have used the above advice even before I have seen them, at 63 I have retired for a couple of years, 1mio$ in the pocket, and the turnover on my stock trading over the last 5 years has been 0.4mio$, and that feeling, that nobody can touch me is amazing.
also, whatever comfort level you have over time, you get used to. our grandparents were probably enjoying their then new car just as much as we do today.
Don't have any debt, no car, never went for brands, no gadgets, no nights out, never had cash to invest. But a family and an regular job (full stack programmer). To say it with Life of Brian: still hanging head down...
This is excellent advice. U have implemented all if these principles and now at age 62 I am very comfortable financially and in my life. I would encourage young people to go down this path.
Joe, ThanK You! You are speaking Truth! Many of us, me included, have failed, because we lack self discipline. We use every excuse we can devise to justify our lack of self discipline!!! Thank You for shining the light of truth on this issue!
Years ago I used to work with a guy who kept borrowing money from his friends. And they used to lend him thinking that he may have been struggling with his family and their upkeep. Until he came in one day, showing off his latest tattoo and told them how much it cost. They stopped lending him from that day and some of them never got repaid.
The first thing they told us when we get our private pension is re invest to make it last your lifetime,going on a world cruise,buying that car,swopping your wife/husband for a younger model really isnt the answer.....re-invest!
Great work, joe. This is one of the best 20 minutes on how to turn your financial situation around. This is literally what i've done over the last 10 years. Get rid of your debt, don't waste your cash on frivolous nonsense then invest what you've saved in good assets.
"Rich dad, poor dad" - old but gold. Still a valid starting point since the financial education is yet not taught in schools. I was almost 40 when I've realized that, better late than never thou ... :)
I only had to take one loan once in my life, 15 years ago, to buy an apartment, and worked really hard to pay it off as soon as possible because I hate the idea of having debt. Since then I've been investing in high yield stocks. My plan is that when I retire I will yearly receive as much from dividends as I get in salary, I'm already halfway there. Single person/income household, no car, no debt, no alcohol, fancy restaurants and no fancy designer clothes. New iPhone every 5 years. Also, I don't live a miserable life but do make a budget for myself every year which includes nice holidays and so on. Seems to be working.
Joe - Excellent video! But, new cars can be a good deal overall if you keep them 15 years. Cars that old that you personally cared for throughout their entire life are actually worth more in utility value than what you could sell them for. My 2011 Toyota RAV4 is running well enough to go another 10 years. Also, keep in mind that wives often insist upon buying brand new cars. And, while new cars are wealth killers, divorce is an even bigger wealth killer.
He won't get too far with constant "Russia is burning" videos ... At some point ppl will notice doesn't 😂. Imagine doing that kind of videos about North Korea 😂 your life would be too short
nothing more annoying than a full time youtuber earning good money and trying to earn more and more talking about how they are retired when quite clearly they are not...real shame hes letting the greed overtake his previous message.
@@lurker668 While I agree with you, there are many more content-rich and topically relevant directions to take the channel in that don’t assume the audience is financially incompetent.
Don’t get into debt esp credit card debt Don’t by overpriced cars depreciating assets Don’t buy overpriced brands Don’t drink excessively or use substances Don’t forget to invest and budget your spending
- Low interest on debt: Restructure your debt to minimise debt costs. Avoid credit cards debt entirely. - Avoid spending on depeciating assets with high service costs. Especially expensive cars (also living in a house bigger than you need...note you can invest in real estate and rent it instead) - Don't waste money on status symbols: Spend on mid-priced brands, the cheap ones dont last or often have major flaws. Expensive ones you are paying for status and marketing. - Dont waste money on unhealthy consumables (alcohol, drugs, sugar) that will cost you money and also negatively affect your lifespan and quality of life. - Take the extra money and invest it carefully in diverse assets suitable for your risk tolerance/preference. Ideally make this saving automatic when you receive money after setting aside money for taxes and mandatiry expenses.
Another way is to install solar panels to reduce electric bills and even generate income promoting green sustainable development... Also invest in your spiritual and mental capabilities...
Robert Kiosaki said in "Rich Dad, Poor Dad" that there are two sorts of debt: good debt and bad debt. An example of good debt would be real estate. A bad debt is a brand new car. The rental home (if you have the stomach to deal with renters) will appreciate while your renters pay the interest. The brand new car loses half of its value in the first year or two, but you're still on the hook for the full cost.
@@tk80mufa5 Uhhh, his net worth is reportedly $100m, which is hardly broke. As far as real estate, in my experience, yes and no. It seems to appreciate in spurts, but one of the nice things is that your investment is locked in the past. Usually this is OK (Colorado), but sometimes it's not (insert dying little Midwest town name here). The trick is buying places where people are moving to, not from, in good neighborhoods, and having enough cash on-hand in case a tenant trashes the place.
I purchased a shears for cutting my hair 20 years ago & I was a regular in the local barbers. I cut my own hair on a regular basis now & I've saved a fortune on hair cuts!
And now here's something to put a smile on your face: S&P500 Chart going up for 30 years. Thanks Joe. Would love more content on the spending side of retirement. How to not feel empty, etc. Like you seem to have successfully done.
Yes I am doing this in my 60 ties should have done that 30 years ago....instead of work for others.....have your own ..means freedom...and better pay...holiday when I want...
Be smart and work hard is not something we are all privileged enough to do... Being efficient with the money you can earn is a much better tip than telling people to just work harder.
Joe Blogs is a very brave man to be on youTube, yea, review videos here and elsewhere. There are lots and lots of videos on youTube, instagram, and elsewhere that ought to keep him from sleeping at night.
Small purchases over a long time. Do add up. I purchased a coffee machine for $500. Take away, coffee is around $5 each. Buy 4 a week. $20 a week. Times that x 52 weeks. $1040. Bought that coffee machine 4 years ago. Still going strong.
@@monkeh86you’re obviously not a coffee drinker….the point of this video is maintaining a similar level & quality of life, but looking for ways to save on those purchases. Why not say you could stop shopping at Waitrose and go to ASDA or Aldi instead?
Few purchases are more financially inept than buying new car. Payments over 60 to 72 months = 120%+ on the price new .....for a car that's worth 40% at best after paying off?! Let some schmuck eat 30%+ in depreciation over 2 years, or 40% over 3 years ...for that new car smell to show off....his foolishness.
Yeah well maybe some people don't want to buy other people's problems it's not about showing off at all except the van is preferred by my dog so maybe I am showing off to him lol Besides what makes you think that I would sell my six year old vehicle to some low baller?! I would keep it for myself for 20 plus years!
@@peterhumphrys Bravo...you're not a pump and dumper. That said, sorry, profoundly goal post moving comment, and disingenuous comment. You very well know I didn't imply on convey about those who buy and hold a car/van until the wheels fall off. Shame on you. That said, drive it into the ground amigo :) Tough to do with most cars, sadly, especially GM.
When the markets do go down, put every penny you can spare to ride it back up, I do NOT recommend watching it every day. The market usually goes down in September/October and plan around that. ( one time it didn't, and I missed out). Buy when it tanks and people are out. Invest the 400 a month and all you can when it's down.
Every time I've gone anywhere near stocks, I got my fingers badly burned. I've been caught up in three crashes. Never again. I've found timing the narket or timing individual stocks to be near impossible.
@toby9999 same I own only mutual funds, I am done with individual stocks. If you change your mind, I would recommend index funds. When it goes down and it will. That is when we need to put the most in. We should never sell. The first time I lost huge, someone older and wiser than me said, "This is what it feels like to buy low." it felt awful. I'm glad I did it, though.
toby9999 Don't try to time it at all. Just go go go, always. I suggest you read up advice for Warren buffet. Timing the market and missing it once, could mean wiping out everything gained fir years to come, I have always remained consistent, regardless of the state of the rollercoaster. I ride regardless
@MinkieWinkle Warren Buffet says, " Be scared when people are greedy and be greedy when their is blood in the street," so Always be buying but buy more when the market tanks.
@@aleue He does indeed, he always says regardless, continue to buy, instead of trying to hold and time the market, since if you miss it, you are done. Buffets quote. "Be scared when people are greedy and be greedy when their is blood in the street" Is in regards to the fear and hype trains, For instance, when the news is screaming about how everything is terrible. Telling people to worry etc. he suggests that is when people should be getting onboard. doing the opposite to the sentiment of the masses, When everyone else is selling out of irrational panic, he is buying at a discounted price
Excellent advice - someone should I told me about the investment part when I was younger, I would have definitely done that. But the problem is: when you have a partner and you are not singing from the same hymn sheet, it’s never going to work.
Great advice. Young people should heed this advice. Another benefit of not spending your money on alcohol, is a health benefit. Staying healthy will keep your medical costs down and help you live a longer life to enjoy the wealth you built by following the guidelines laid out in the video.
two points: a) regarding debt: something to say is, no point trying to save anything until you have wiped out your debt. people like to save a bit of dosh, which isn't a bad thing, but you won't build wealth if you're chucking money into a bank account getting 2-5% interest a year when you have a debt on a car or card with anywhere between 8 and 25%. Forget saving anything significant until you have paid-down your debt. b) whilst being frugal avoiding buying the latest and greatest tech, designer clothes, going out partying is a necesity to become "rich", at the same time you want to enjoy your life, so factor a bit of "fun" money into your budget to enjoy life NOW as well as getting "rich" later where you can have more fun.
I changed computer a couple of weeks ago- buying a good used model onto which it was easily possible to copy everything from the old laptop and still have plenty space left. The guy gave me back the RAM chips, telling me to keep and sell those!
I think you missed number 7: All your subscriptions. Do you really need a subscription to Netflix, HBO and Amazon Prime? How about your phone plan - can you switch to a cheaper carrier? Insurance - do you have the best and cheapest insurance? Do you have other subscriptions that you really do not need like a subscription to a gym or maybe a book club. It is easy to find 100-200 dollars if you take a hard look at the subscriptions.
RIght- one of my best friends is an accountant of 25 years' experience, but always buys a 2-4 year old car of good quality, rather than a new one with the insane new car markup.
Great stuff Joe. Nothing is rarely new but financial discipline is key and you described it perfectly. I would add one other and that is subscriptions like gym memberships / newspapers / cloud services / streaming should always be under review for usage and the end of offers or trial periods.
I bought a brand new Toyota 4Runner in 2002. I paid off the 5 year note in 2 years and I'm still driving it today. I'm getting ready now to buy a newer car but will be paying cash with the money I've saved over the years by not buying something new every 5 years. LOL...I'll probably still keep driving my 2002 SUV for camping.
I feel you on alcohol, but I think we were going to very different pubs & clubs. At least I know the drain cleaner they feed us is keeping my insides clean 😅
1.) Lifestyle creep 2.) Procrastinating 3.) Debt that is not a mortgage 4.) Poor career choice 5.) Not DIY'ing 6.) Bragspending All of these should leave you a lot of money extra per month that you should invest.
I'm 49 years old, debt free including my house. I've never owned a new car, currently driving a used Prius. Been saving in a 401k and mutual funds on top of that for 25+ years. Could retire now, but I like my work. Outside of work, I dress like a bum. I drink at home. I cook my own meals. I even make my own coffee every morning. I'm balding so I buzz off my hair once a week....
I drive an electric car, huge savings, solar voltaic panels, a water to water heat pump, an A rated insulated house and in time a domestic wind turbine. That’s a lot of tax not being paid.
Insulating the House is far and away the most cost-effective (especially with a solar powered attic fan) -- electric cars are bad investments, and would recommend hybrids. WSHP's (Water Source Heat Pumps) are very cost-effective, especially geothermal, but are overrated on payback period -- Licensed Professional Engineer with an MBA from top schools.
@@Kingcarparpeggio not really. For example I bought a Nissan Leaf with less than 100,000km from Japan for €2,500, it was so cheap because the original battery was in such a poor condition, and replaced it with a nearly perfect cheap second hand battery from a crashed car Nissan Leaf put it into my Japanese made one. It’s got more power (from a 24kw to a 62Kw)and will last way longer than the original. I did this three times, the others are for my wife and my 20 year old daughter who’s at home as she’s working at the weekend in the nearest town. Got a government grant for the insulation, the heat pump, and the solar panels. I have water solar tubes for several years now, also partly paid with a government grant, zero hot water bills from April to September.
@@richardlellip.e.m.b.a.7969 I got lucky/unlucky, when I switched from oil heating to geothermal heating, the pumper messed up and the oil went into the subfloor. As we have underfloor heating, the whole house was gutted and that was our opportunity to insulate the guts of the house. For example no floor is now touching any internal or external walls. Under the floor is 100mm high density insulation which didn’t even exist when we built the house in 2001-2004.
I spend a lot on travel and going out on weekends. During COVID I saved a small fortune. Otherwise I'm good with the other points, especially the investments. It's also important to mention that you always need a lot of liquid cash for the unexpected expenses. Because you know those always happen when the market is low and you've to sell on discount.
Yeah, There's good debt and bad debt. Debt invested in capital - it will repay itself over time. Debt invested in sunk costs/consumables - you won't get it back.
You can buy the best wine and top shelf liquor and drink at home for less than the cheap watered down alcohol at bars, not to mention tips. Invite friends over for drinks and impress them with your taste and you’ll come out much better. The one thing I’d say different is used cars are so expensive and you don’t know the problems the dealer is hiding. So I buy new Hondas and Toyotas and drive them 10 or 12 years.
One other thing I'd mention - if you get into the habit of being reasonably frugal while you're working, not only can you save & invest more for an early retirement, but in retirement, you'll be more comfortable and happy spending a little more without straining your budget.
So many people are lazy and don’t check card interest or running costs of a car, save money for a year that you spend on card interest etc, wait for new phone, price drops after about 6 to 9 months same with cars, buy 3 plus year old.
Refreshing video, Joe! I respect your experience and common sense. Our Canadian government is known for being generous, but let me tell you, it's really not. We get most health care without paying out of pocket, but be careful about your pension. Pension in Canada is not a guaranteed income, it's more like insurance: the more you pay, the more you get. If you're self-employed, and you don't contribute, you get practically nothing. The best thing is to put money away as soon as you start working. Don't rely on pension and even your employer's pension funds-a friend who worked for Sears lost her pension with them after they went bankrupt. Ironically, the only party which really supports pensioners is the Bloq Quebecois, which wants to separate from the rest of Canada. Don't rely on rumors; get a good financial advisor when you're young and save money.
in the country where i live it is actually quite cheap to do some professional education, quite many of these means of education can be done even while doing a full time job - of course quite stressful but possible. in many cases this can open very good job opportunities, but this works only, if 1) you know what you want to do and 2) you really start and also finish it.
Perfect and yet things once considered "of course". Another video, ,"11 Things Poor people waste money on that rich people don't" goes into more detail. You could have added cigarettes to tobacco - expensive in more ways than one. I'm a cook and had a new kitchen installed (my Christmas, Birthday, Anniversary gift - lol). The architect said most of his work came from 1) people building $150,000 kitchens who don't cook and 2) Entire rooms dedicated to clothes, shoes, etc with sunken baths, dramatic lighting, tv/stereo, bars, etc We paid off the house in 15 years. We drive Hondas, shop at Aldis, rarely buy clothes, eat at home most the time, have an old iphone, get wine at Trader' Joe's. I saw a study that 85% of those buying a new phone did so solely because it was new. I have buds who have put in $20 in the lottery every week for 15 years. I don't get it.
As a young man, I wasn't as appreciative of your retirement video. This video however, is realistic advice in my opinion. All of these are lessons i was able to learn early enough to not have a detriment to my future. I cannot say the same of my peers. And i wish they had, for their sake and their long term happiness. I'll watch/listen to future content like this.
Well, I was about to say something a bit snide along the lines of being talked down to like a school kid, but I suppose you're right, this ought to be taught to everyone early on, but it clearly isn't.
No alcohol, crappy IPhone 8, crappy clothes some 10 years old, no mortgage , almost always pay off credit cards monthly , no investments as I don’t trust “ financial advisors “ ( look what happened to Fergie ) 😳
Please consider some videos about the German and Japanese economy in he 1930's and during the second world War. Then you can refer to those as comparative historical perspective with the Russian economy.
Kids...its kids ( and a low salary) that stop you getting rich. I dont do nice cars, tech, debts, nice clothes etc and still never have a penny left to save at the end of the month. ( oh and vets bills!!)
Remember the Rule of 72 : Divide 72 by your rate of return and you will get the time it takes to double your money. So, if you are earning the S&P 500 long-term rate of return of over 10 per cent, you will double your money every 7.2 years. If you invest for about 30 years, your money will double four times. So, in 30 years your money will multiply by SIXTEEN times!
Precisely. I wish more knew of this, then we wouldn't have a pension problem right now. Day one I left education, I maxed my pension contributions and oh boy, has it grown.. absolutely.
Mostly seems right in my experience. Although my luck with used cars hasn't been great. I buy new cars generally that aren't crazy expensive and keep them awhile. Before latest car had one for 27 years, one for 15 years, neither expensive to maintain.
You missed the most important one, number 7 if you like Stay with your partner particularly if there are children involved The fastest way into the poor house is to be paying money for the one that you are not allowed to live in . I spent 9 years in a revolving share house , dubbed "the Menopause Mansion " for obvious reasons . It was amazing the transformation of the men ( all around 50 ish ) when they had to do everything for themselves and the sudden appreciation of just how much their partner did for them . I blame Walt Disney for this as we all seem to expect our partners to be a Cinderella and they seem to think we all have to be prince Charming's and humans are just not like that. Relationships take more work than working does and it was gratifying to see quite a few go back for a second try with a whole new appreciation of exactly what their partner did for them . Divorces and in particular multiple divorces are the domain of those with 6 & 7 digit incomes and most of them men I have come across that have had multiple partners seem just to be little boys who expect a partner to be a sort of doting mother figure with bedroom privileges thrown in on the side whenever they feel like it rather than when they have earned it .
To be rich is almost impossible for the 95% of the people. We can aspire to be wealthy and the way to do so is to know how much you need to be ok. I have seen people earning a lot and it is not enough and others with much less perfectly secure. The key is to know what you want and the numbers. Match what you earn, what you spend and save. Easy. Some people are better off with a renting car whilst others with a second hand one ...
I have no debt. I pay off my credit cards every month. I drive a ten year old truck. I wear jeans and a T-shirt. All my tech is old and I carry a flip phone. I have a financial planner. My nightclub is my workshop where I have a couple of cold ones while cleaning up after maintaining my vehicles, equipment, and tools Joe just made me realize I’m a financial genius. Thanks Joe!
So… did you managed to become rich? 🙄
Yep.
We are kindred spirits .I wear coveralls almost exclusively which I buy new form a few op shops that take in ex company clothing and at $ 10 to $ 20 a hit they are dirt cheap .
All of my vehicles are maintained by me because they are all low tech and on historic registration so the 6 added up together do not cost as much as a green slip for just one of them .
I can sew and occasionally do make some clothing if I come across some fabric I really like & it is cheap enough .
So now I have some thing that most never attain, I have my own style .
Like you I spend a lot of time in the garage often with others who come around to borrow tools, do some machining or get help with those awkward 2 person jobs .
No alcohol in the workshop but there is a dripolater ( remember them ) and a fridge full of finger food so we have a good time .
Finally got serious about the garden so it is a case of "if I don't grow it I don't eat it with the exception of the food swapped with other fellow gardeners and I am Don Bourke in the garden ( LAZY ) . Like you my tech is old usually bought either ex lease or from liquidators when a business goes bust , and the kitchen appliances were all bought the same way .
Amazing what the liquidators will pop into a box & call " lunchroom items "
For various health reasons I have not done much work since 2019 and find I can live quite well on my franking credits alone while the dividends accumulate in a DRP to hopefuly over take the money I had to borrow when I split with my partner .
@@TelmoMartinhoI did the same and yes, I'm comfortable now
@@TelmoMartinho -Retired early and we are living comfortably in a paid off home with two vehicles. Is that rich?
Like the comment above mine, I retired early, home paid for, two cars both paid for. I have never had a credit card, don't have any debts. Invest in a private pension as well as the State pension, work hard, save as much as you can over your working life. Don't get into debt for that holiday abroad every year and don't try and keep up with the Jones's. They will probably be up to their necks in debt as well. I grew up in a working class family and remember the words of my Grand Parents ; Never a lender or a borrower be. Live within your means, if you can't afford it, save up and buy it with your own money. There's more to life than money.
You have just described the story of my life. Happily retired early and my only problem now is making sure I spend all my wealth before I pass on. Everything you said used to be common sense!
See, I don't understand spending everything before I pass on
I'd wanna have someone in my life, most people would have kids, they could leave the money to BUT before doing that, make sure they are financially literate as well, so the money can keep growing even after you're gone
When I was 20, I bought a used clunker Toyota for next-to-nothing and started to put a 'car payment' into a bank account. 2 years later, I bought my first new car and paid cash. Every month since then, I put a car payment into the bank for my next vehicle. I never paid interest on a loan but earned interest at the bank.
I have always tried to avoid debt. It never made me rich, but I know it has saved me money.
I am doing exactly what you have advised, however I was late. I figured this out after 70. Still I am much better off now at the age of 80.
For me "freedom from financial disaster" is my equivalent of "rich." When I was younger a mechanical problem with the vehicle could be a catastrophe. Or an appliance crapping out. Now I get the car fixed and replace the appliance. Less stress has me feeling good.
Thanks Joe. This simple common sense means a lot coming from you. Your credibility make this advice special. Looking forward to any more you have to share.
Don’t get into debt esp credit card debt
Don’t by overpriced cars
Don’t buy overpriced brands
Don’t buy every new tech gadget
Don’t drink excessively
Don’t forget to invest
I often hear the argument that driving a fancy big car gives you comfort at driving, my argument is that for every hour of comfort in the car, you have to sit one day more at work, paying for the comfort
It depends on what the fancy big car is used for.....if it's used as part of a business there is a reason to have it.
@@meilinchan7314 Sort of true, you still have to pay, but I have used the above advice even before I have seen them, at 63 I have retired for a couple of years, 1mio$ in the pocket, and the turnover on my stock trading over the last 5 years has been 0.4mio$, and that feeling, that nobody can touch me is amazing.
also, whatever comfort level you have over time, you get used to. our grandparents were probably enjoying their then new car just as much as we do today.
Too many people go out their way to buy things they do not need, with money they do not have, To try and impress people they don't even know
Someone's been watching dave ramsey 😄
That's why I make and I sell soap
@thinkdeep8806. I have been watching dave for about 10 years, it's entertaining, to be honest.
Don't have any debt, no car, never went for brands, no gadgets, no nights out, never had cash to invest. But a family and an regular job (full stack programmer). To say it with Life of Brian: still hanging head down...
Come on Brian, you know what they say! Some things in life are bad. They can really make you mad. Other things just make you swear and curse.
@@huma474 okay, go on. What's the punchline?
This is excellent advice. U have implemented all if these principles and now at age 62 I am very comfortable financially and in my life. I would encourage young people to go down this path.
We die only once, but we live every day, this is worth to remember
Joe, ThanK You! You are speaking Truth! Many of us, me included, have failed, because we lack self discipline. We use every excuse we can devise to justify our lack of self discipline!!! Thank You for shining the light of truth on this issue!
Great video! More videos like this. You pick the subject 👍
Years ago I used to work with a guy who kept borrowing money from his friends. And they used to lend him thinking that he may have been struggling with his family and their upkeep. Until he came in one day, showing off his latest tattoo and told them how much it cost. They stopped lending him from that day and some of them never got repaid.
The first thing they told us when we get our private pension is re invest to make it last your lifetime,going on a world cruise,buying that car,swopping your wife/husband for a younger model really isnt the answer.....re-invest!
The 7th item in the west is don't have a girlfriend
I have a husband. He is just like an expensive girlfriend. On male stereoids.
Just find one with the same financial common sense. You might be happier than being single. And there is more to life than being rich.
Found the guy who can’t get a girlfriend.
This is smart, solid, and *actionable* advice. Learn these lessons as early as you can.
(Wall St financial analyst)
Everything he said is absolutely true, I have been able to experience it over time.
So many are living from hand to mouth 😂😂
They don't like to hear this.
Too many people not wanting to take personal responsibility
Thanks Joe 😊
Great work, joe. This is one of the best 20 minutes on how to turn your financial situation around. This is literally what i've done over the last 10 years. Get rid of your debt, don't waste your cash on frivolous nonsense then invest what you've saved in good assets.
It's often said that those who fail to understand compound interest end up paying it, while those who do understand EARN interest.
"Rich dad, poor dad" - old but gold. Still a valid starting point since the financial education is yet not taught in schools.
I was almost 40 when I've realized that, better late than never thou ... :)
I only had to take one loan once in my life, 15 years ago, to buy an apartment, and worked really hard to pay it off as soon as possible because I hate the idea of having debt. Since then I've been investing in high yield stocks. My plan is that when I retire I will yearly receive as much from dividends as I get in salary, I'm already halfway there. Single person/income household, no car, no debt, no alcohol, fancy restaurants and no fancy designer clothes. New iPhone every 5 years. Also, I don't live a miserable life but do make a budget for myself every year which includes nice holidays and so on. Seems to be working.
Joe - Excellent video! But, new cars can be a good deal overall if you keep them 15 years. Cars that old that you personally cared for throughout their entire life are actually worth more in utility value than what you could sell them for. My 2011 Toyota RAV4 is running well enough to go another 10 years. Also, keep in mind that wives often insist upon buying brand new cars. And, while new cars are wealth killers, divorce is an even bigger wealth killer.
Joe has become a finfluencer.
More money in this type of content.
He won't get too far with constant "Russia is burning" videos ... At some point ppl will notice doesn't 😂. Imagine doing that kind of videos about North Korea 😂 your life would be too short
nothing more annoying than a full time youtuber earning good money and trying to earn more and more talking about how they are retired when quite clearly they are not...real shame hes letting the greed overtake his previous message.
@@lurker668 While I agree with you, there are many more content-rich and topically relevant directions to take the channel in that don’t assume the audience is financially incompetent.
I miss the variety of the countries he used to do economic analysis on. Gets a bit boring doing Russia and China constantly.
Don’t get into debt esp credit card debt
Don’t by overpriced cars depreciating assets
Don’t buy overpriced brands
Don’t drink excessively or use substances
Don’t forget to invest and budget your spending
Tip number #$$%? : Make sure you don't exist: it helps to have no needs like eating or lodging...
- Low interest on debt:
Restructure your debt to minimise debt costs. Avoid credit cards debt entirely.
- Avoid spending on depeciating assets with high service costs. Especially expensive cars (also living in a house bigger than you need...note you can invest in real estate and rent it instead)
- Don't waste money on status symbols: Spend on mid-priced brands, the cheap ones dont last or often have major flaws. Expensive ones you are paying for status and marketing.
- Dont waste money on unhealthy consumables (alcohol, drugs, sugar) that will cost you money and also negatively affect your lifespan and quality of life.
- Take the extra money and invest it carefully in diverse assets suitable for your risk tolerance/preference. Ideally make this saving automatic when you receive money after setting aside money for taxes and mandatiry expenses.
Another way is to install solar panels to reduce electric bills and even generate income promoting green sustainable development...
Also invest in your spiritual and mental capabilities...
Robert Kiosaki said in "Rich Dad, Poor Dad" that there are two sorts of debt: good debt and bad debt. An example of good debt would be real estate. A bad debt is a brand new car. The rental home (if you have the stomach to deal with renters) will appreciate while your renters pay the interest. The brand new car loses half of its value in the first year or two, but you're still on the hook for the full cost.
Robert Kioyosaki is broke.
And btw , real estate is not a good investment.
@@tk80mufa5 Uhhh, his net worth is reportedly $100m, which is hardly broke. As far as real estate, in my experience, yes and no. It seems to appreciate in spurts, but one of the nice things is that your investment is locked in the past. Usually this is OK (Colorado), but sometimes it's not (insert dying little Midwest town name here). The trick is buying places where people are moving to, not from, in good neighborhoods, and having enough cash on-hand in case a tenant trashes the place.
I purchased a shears for cutting my hair 20 years ago & I was a regular in the local barbers. I cut my own hair on a regular basis now & I've saved a fortune on hair cuts!
Do you still look attractive?
@@beatrichey hahahaa XD
I did that once, but I was 5 at the time, and it happened to be the day before the school photo, which was ... shall we say... memorable
@@beatrichey TBH, when i first bought a pair of clippers in the 90s i was already pretty ugly.
And now here's something to put a smile on your face: S&P500 Chart going up for 30 years.
Thanks Joe. Would love more content on the spending side of retirement. How to not feel empty, etc. Like you seem to have successfully done.
Nothing wrong with debt as long as it’s income generating asset. Debt has leverage our wealth astronomically.
Start and own a successful business and don't work for anybody -- you have to be smart & hard working.
Yes I am doing this in my 60 ties should have done that 30 years ago....instead of work for others.....have your own ..means freedom...and better pay...holiday when I want...
Facts!
Be smart and work hard is not something we are all privileged enough to do...
Being efficient with the money you can earn is a much better tip than telling people to just work harder.
Or being lucky
Working Full-Time & starting a Business Part Time where you have write-offs and build Tax-Free Equity on Capital Investments is also priceless
Joe Blogs is a very brave man to be on youTube, yea, review videos here and elsewhere.
There are lots and lots of videos on youTube, instagram, and elsewhere that ought to keep him from sleeping at night.
Small purchases over a long time. Do add up. I purchased a coffee machine for $500. Take away, coffee is around $5 each. Buy 4 a week. $20 a week. Times that x 52 weeks. $1040. Bought that coffee machine 4 years ago. Still going strong.
Alternatively you could’ve just saved yourself buying a $500 coffee machine and just drank instant coffee every day 😎
that is a hall of a coffee machine
@@monkeh86you’re obviously not a coffee drinker….the point of this video is maintaining a similar level & quality of life, but looking for ways to save on those purchases. Why not say you could stop shopping at Waitrose and go to ASDA or Aldi instead?
Parents with huge public sector db scheme always told me…. “Don’t buy shocks and scares” buy bonds and property. Shares are just gambling to them.
Hope this isn't the new style of video's.
better than a constant reminder we have to be afraid of Russia nuclear power
I don't have much hope for this channel. I'm beginning to think that the whole "stolen channel" fiasco was actually a scam.
well, you already know the state of russian economy - it's in the toilet - what more do you want to know?
Few purchases are more financially inept than buying new car.
Payments over 60 to 72 months = 120%+ on the price new
.....for a car that's worth 40% at best after paying off?!
Let some schmuck eat 30%+ in depreciation over 2 years, or 40% over 3 years
...for that new car smell to show off....his foolishness.
What if you end up with a car that has been in a flood? I would rather play a bit extra for peace of mind.
Yeah well maybe some people don't want to buy other people's problems it's not about showing off at all except the van is preferred by my dog so maybe I am showing off to him lol
Besides what makes you think that I would sell my six year old vehicle to some low baller?!
I would keep it for myself for 20 plus years!
"new car smell" always made me laugh... thats toxic off-gassing
@@gug1970 Gassing? Pull my finger.
Sorry, too easy :)
@@peterhumphrys Bravo...you're not a pump and dumper.
That said, sorry, profoundly goal post moving comment, and disingenuous comment.
You very well know I didn't imply on convey about those who buy and hold a car/van until the wheels fall off.
Shame on you.
That said, drive it into the ground amigo :)
Tough to do with most cars, sadly, especially GM.
I bought a new PHEV outlander. Replaced a car that was costing me more then a new car.
I drive my cars until they are useless and worn out.
When the markets do go down, put every penny you can spare to ride it back up, I do NOT recommend watching it every day. The market usually goes down in September/October and plan around that. ( one time it didn't, and I missed out). Buy when it tanks and people are out. Invest the 400 a month and all you can when it's down.
Every time I've gone anywhere near stocks, I got my fingers badly burned. I've been caught up in three crashes. Never again. I've found timing the narket or timing individual stocks to be near impossible.
@toby9999 same I own only mutual funds, I am done with individual stocks. If you change your mind, I would recommend index funds. When it goes down and it will. That is when we need to put the most in. We should never sell. The first time I lost huge, someone older and wiser than me said, "This is what it feels like to buy low." it felt awful. I'm glad I did it, though.
toby9999
Don't try to time it at all.
Just go go go, always. I suggest you read up advice for Warren buffet.
Timing the market and missing it once, could mean wiping out everything gained fir years to come, I have always remained consistent, regardless of the state of the rollercoaster. I ride regardless
@MinkieWinkle Warren Buffet says, " Be scared when people are greedy and be greedy when their is blood in the street," so Always be buying but buy more when the market tanks.
@@aleue He does indeed, he always says regardless, continue to buy, instead of trying to hold and time the market, since if you miss it, you are done.
Buffets quote. "Be scared when people are greedy and be greedy when their is blood in the street"
Is in regards to the fear and hype trains,
For instance, when the news is screaming about how everything is terrible.
Telling people to worry etc. he suggests that is when people should be getting onboard. doing the opposite to the sentiment of the masses, When everyone else is selling out of irrational panic, he is buying at a discounted price
Excellent advice - someone should I told me about the investment part when I was younger, I would have definitely done that.
But the problem is: when you have a partner and you are not singing from the same hymn sheet, it’s never going to work.
Great advice. Young people should heed this advice. Another benefit of not spending your money on alcohol, is a health benefit. Staying healthy will keep your medical costs down and help you live a longer life to enjoy the wealth you built by following the guidelines laid out in the video.
two points: a) regarding debt: something to say is, no point trying to save anything until you have wiped out your debt. people like to save a bit of dosh, which isn't a bad thing, but you won't build wealth if you're chucking money into a bank account getting 2-5% interest a year when you have a debt on a car or card with anywhere between 8 and 25%. Forget saving anything significant until you have paid-down your debt. b) whilst being frugal avoiding buying the latest and greatest tech, designer clothes, going out partying is a necesity to become "rich", at the same time you want to enjoy your life, so factor a bit of "fun" money into your budget to enjoy life NOW as well as getting "rich" later where you can have more fun.
I changed computer a couple of weeks ago- buying a good used model onto which it was easily possible to copy everything from the old laptop and still have plenty space left. The guy gave me back the RAM chips, telling me to keep and sell those!
People need to unlearn many things to make money.
Good one!
I think you missed number 7: All your subscriptions.
Do you really need a subscription to Netflix, HBO and Amazon Prime? How about your phone plan - can you switch to a cheaper carrier? Insurance - do you have the best and cheapest insurance? Do you have other subscriptions that you really do not need like a subscription to a gym or maybe a book club.
It is easy to find 100-200 dollars if you take a hard look at the subscriptions.
Great content
8:59 Gucci and Prada, the way you pronounce it is so lit 🔥 😂
RIght- one of my best friends is an accountant of 25 years' experience, but always buys a 2-4 year old car of good quality, rather than a new one with the insane new car markup.
Great stuff Joe. Nothing is rarely new but financial discipline is key and you described it perfectly. I would add one other and that is subscriptions like gym memberships / newspapers / cloud services / streaming should always be under review for usage and the end of offers or trial periods.
I bought a brand new Toyota 4Runner in 2002. I paid off the 5 year note in 2 years and I'm still driving it today. I'm getting ready now to buy a newer car but will be paying cash with the money I've saved over the years by not buying something new every 5 years. LOL...I'll probably still keep driving my 2002 SUV for camping.
I feel you on alcohol, but I think we were going to very different pubs & clubs.
At least I know the drain cleaner they feed us is keeping my insides clean 😅
So for the most part just don't engage in consumerism ( as the consumer that is ).
I agree, also buy what you NEED - not what you WANT.
1.) Lifestyle creep
2.) Procrastinating
3.) Debt that is not a mortgage
4.) Poor career choice
5.) Not DIY'ing
6.) Bragspending
All of these should leave you a lot of money extra per month that you should invest.
After listening to "The riches man in Babylon" I immediately started to invest in the stock market
It's such a great book
It really is !!!
I'm 49 years old, debt free including my house. I've never owned a new car, currently driving a used Prius. Been saving in a 401k and mutual funds on top of that for 25+ years. Could retire now, but I like my work. Outside of work, I dress like a bum. I drink at home. I cook my own meals. I even make my own coffee every morning. I'm balding so I buzz off my hair once a week....
This is simply brilliant and brilliantly simple. Thank you, Joe, for concentrating on what you know so very well!
I drive an electric car, huge savings, solar voltaic panels, a water to water heat pump, an A rated insulated house and in time a domestic wind turbine.
That’s a lot of tax not being paid.
Yeah…..and a hell of lot of money to get it 😂😂😂😂😂
Insulating the House is far and away the most cost-effective (especially with a solar powered attic fan) -- electric cars are bad investments, and would recommend hybrids. WSHP's (Water Source Heat Pumps) are very cost-effective, especially geothermal, but are overrated on payback period -- Licensed Professional Engineer with an MBA from top schools.
@@Kingcarparpeggio not really.
For example I bought a Nissan Leaf with less than 100,000km from Japan for €2,500, it was so cheap because the original battery was in such a poor condition, and replaced it with a nearly perfect cheap second hand battery from a crashed car Nissan Leaf put it into my Japanese made one. It’s got more power (from a 24kw to a 62Kw)and will last way longer than the original.
I did this three times, the others are for my wife and my 20 year old daughter who’s at home as she’s working at the weekend in the nearest town.
Got a government grant for the insulation, the heat pump, and the solar panels.
I have water solar tubes for several years now, also partly paid with a government grant, zero hot water bills from April to September.
Yet. It will be taxed very very soon.
@@richardlellip.e.m.b.a.7969 I got lucky/unlucky, when I switched from oil heating to geothermal heating, the pumper messed up and the oil went into the subfloor. As we have underfloor heating, the whole house was gutted and that was our opportunity to insulate the guts of the house. For example no floor is now touching any internal or external walls.
Under the floor is 100mm high density insulation which didn’t even exist when we built the house in 2001-2004.
Dragging a mortgage on an negative equity property; but there is light at the end of the tunnel!!
What about education investing in yourself as i am trying to do in in-demand IT courses
I spend a lot on travel and going out on weekends. During COVID I saved a small fortune. Otherwise I'm good with the other points, especially the investments. It's also important to mention that you always need a lot of liquid cash for the unexpected expenses. Because you know those always happen when the market is low and you've to sell on discount.
Taking on debt was the key to becoming rich these past decades... It's a shame many of us missed the boat.
Yeah, There's good debt and bad debt.
Debt invested in capital - it will repay itself over time.
Debt invested in sunk costs/consumables - you won't get it back.
You can buy the best wine and top shelf liquor and drink at home for less than the cheap watered down alcohol at bars, not to mention tips. Invite friends over for drinks and impress them with your taste and you’ll come out much better. The one thing I’d say different is used cars are so expensive and you don’t know the problems the dealer is hiding. So I buy new Hondas and Toyotas and drive them 10 or 12 years.
Thanks
One other thing I'd mention - if you get into the habit of being reasonably frugal while you're working, not only can you save & invest more for an early retirement, but in retirement, you'll be more comfortable and happy spending a little more without straining your budget.
The average cost of a shot of whiskey in Seattle, Washington is between $16-$26. (44ml is the standard shot glass.) Go out and go broke quick!
1 no debt, 2 no new car, just a beater , 3 no brands,
Excellent information
Worst financial decision I ever made in 42 years was buying a car that was less than 15 years old
So many people are lazy and don’t check card interest or running costs of a car, save money for a year that you spend on card interest etc, wait for new phone, price drops after about 6 to 9 months same with cars, buy 3 plus year old.
Refreshing video, Joe! I respect your experience and common sense. Our Canadian government is known for being generous, but let me tell you, it's really not. We get most health care without paying out of pocket, but be careful about your pension. Pension in Canada is not a guaranteed income, it's more like insurance: the more you pay, the more you get. If you're self-employed, and you don't contribute, you get practically nothing. The best thing is to put money away as soon as you start working. Don't rely on pension and even your employer's pension funds-a friend who worked for Sears lost her pension with them after they went bankrupt. Ironically, the only party which really supports pensioners is the Bloq Quebecois, which wants to separate from the rest of Canada. Don't rely on rumors; get a good financial advisor when you're young and save money.
Joe thanks for great advice, I needed this 😅
If you pay 20% on debt, if you pay down that debt, that is a guaranteed 20% return on your money, a 20% return that is tax free
Thanks Joe. Tell us how to reduce our taxes.
in the country where i live it is actually quite cheap to do some professional education, quite many of these means of education can be done even while doing a full time job - of course quite stressful but possible. in many cases this can open very good job opportunities, but this works only, if 1) you know what you want to do and 2) you really start and also finish it.
Perfect and yet things once considered "of course". Another video, ,"11 Things Poor people waste money on that rich people don't" goes into more detail. You could have added cigarettes to tobacco - expensive in more ways than one. I'm a cook and had a new kitchen installed (my Christmas, Birthday, Anniversary gift - lol). The architect said most of his work came from 1) people building $150,000 kitchens who don't cook and 2) Entire rooms dedicated to clothes, shoes, etc with sunken baths, dramatic lighting, tv/stereo, bars, etc We paid off the house in 15 years. We drive Hondas, shop at Aldis, rarely buy clothes, eat at home most the time, have an old iphone, get wine at Trader' Joe's. I saw a study that 85% of those buying a new phone did so solely because it was new. I have buds who have put in $20 in the lottery every week for 15 years. I don't get it.
As a young man, I wasn't as appreciative of your retirement video.
This video however, is realistic advice in my opinion. All of these are lessons i was able to learn early enough to not have a detriment to my future. I cannot say the same of my peers. And i wish they had, for their sake and their long term happiness.
I'll watch/listen to future content like this.
In America, we call it, big hat, no cattle.
I thought his channel got hacked again.
Joe start of talking finance and news before heavy on russia due to the invasion
Theres a reason they dont teach this in school. They want us in dept and financially clueless
Well, I was about to say something a bit snide along the lines of being talked down to like a school kid, but I suppose you're right, this ought to be taught to everyone early on, but it clearly isn't.
No alcohol, crappy IPhone 8, crappy clothes some 10 years old, no mortgage , almost always pay off credit cards monthly , no investments as I don’t trust “ financial advisors “ ( look what happened to Fergie ) 😳
Please consider some videos about the German and Japanese economy in he 1930's and during the second world War. Then you can refer to those as comparative historical perspective with the Russian economy.
Kids...its kids ( and a low salary) that stop you getting rich. I dont do nice cars, tech, debts, nice clothes etc and still never have a penny left to save at the end of the month. ( oh and vets bills!!)
I would really prefer if Joe Blogs created a second channel for influencer content, as I follow this channel for the economic/political content.
I need to get my wife to watch this!
Remember the Rule of 72 : Divide 72 by your rate of return and you will get the time it takes to double your money. So, if you are earning the S&P 500 long-term rate of return of over 10 per cent, you will double your money every 7.2 years. If you invest for about 30 years, your money will double four times. So, in 30 years your money will multiply by SIXTEEN times!
Precisely.
I wish more knew of this, then we wouldn't have a pension problem right now.
Day one I left education, I maxed my pension contributions and oh boy, has it grown.. absolutely.
Good video but should I be buying shares in auto manufacturers and luxury clothing brands?
Good advice, unfortunately minority of borrowers don’t have a clue when it comes to interest rates.
Especially with PCP’s .
That’s the predator prey behaviour in the finance sector
Investors saying "cash is trash" as an investment.
Mostly seems right in my experience. Although my luck with used cars hasn't been great. I buy new cars generally that aren't crazy expensive and keep them awhile. Before latest car had one for 27 years, one for 15 years, neither expensive to maintain.
You missed the most important one, number 7 if you like
Stay with your partner particularly if there are children involved
The fastest way into the poor house is to be paying money for the one that you are not allowed to live in .
I spent 9 years in a revolving share house , dubbed "the Menopause Mansion " for obvious reasons .
It was amazing the transformation of the men ( all around 50 ish ) when they had to do everything for themselves and the sudden appreciation of just how much their partner did for them .
I blame Walt Disney for this as we all seem to expect our partners to be a Cinderella and they seem to think we all have to be prince Charming's and humans are just not like that.
Relationships take more work than working does and it was gratifying to see quite a few go back for a second try with a whole new appreciation of exactly what their partner did for them .
Divorces and in particular multiple divorces are the domain of those with 6 & 7 digit incomes and most of them men I have come across that have had multiple partners seem just to be little boys who expect a partner to be a sort of doting mother figure with bedroom privileges thrown in on the side whenever they feel like it rather than when they have earned it .
Saved all my life. Retired early…. Living on an island for cheap. Not missing any Jordache jeans I never bought! 🤣🤣🤣
Run for congress Joe
To be rich is almost impossible for the 95% of the people. We can aspire to be wealthy and the way to do so is to know how much you need to be ok. I have seen people earning a lot and it is not enough and others with much less perfectly secure. The key is to know what you want and the numbers. Match what you earn, what you spend and save. Easy. Some people are better off with a renting car whilst others with a second hand one
...
I'm so happy that I live in a city with great public transportation so I don't need a car.
Very few can buy a house or appartment without dept.
And those who can no longer need to get rich.
1.integrity.