I watched this video years ago right out of high school. Tip #6, about having an emergency fund, has helped immensely. Everyone in my family has called me crazy, yelling at me to spend more money for the "family," but I always told them that I need to maintain some savings, or we could fall into major trouble. At times they were very aggressive attempting to force me to dump my savings to buy a new dvd player, or a down payment for a new car, as my sister did, but I refused. Recently, our land lord gave a notice requiring that we move out, as she is selling the property. Guess what? They had no money, and could not even afford to rent a moving truck. It was my savings that got us out, and it was even my savings which provided for a down payment on a house to give us a low interest rate. They still fail to admit that I was right for pinching every penny, but now I have a greater reason to continue using simple financial common sense. Money is a tool, and all tools need to be treated with respect.
Tr1llobite if your family failed to see what you have done,then their ungrateful. In my life I've learned that sometimes you have to let family go as well as anyone else because they can and will hender you. good thing you think for yourself bro.
First thing: do NOT go to college unless you are focused on a specific major that gets you a high paying job. Most majors outside STEM (science, tech, engineering and math, which includes finance, statistics and actuarial) are worthless. If you want to learn History, pick up a book, especially an old book, and teach yourself, do not go to college for indoctrination. For most people college is a horrible waste of time, money and a risk of your morals.
I was a history major and then went for aa Master's in education. That . was many years ago. I retired as director one year ago, and although I was never a millionaire I always did well.
People think I'm crazy for not buying a new car. I drive a 2001 Hyundai Accent. But it's mine and it's paid for. My goal is to create residual income from my two books and to create jobs for my children. Love this vid
1. 0:44 new car 2. 2:01 home 3. 3:18 doo-dads 4. 4:11 brand-name clothes 5. 5:07 refinancing 6. 5:48 save money 7. 6:21 eating out 8. 6:53 going out too much 9. 7:23 loaning money out 10 8:09 have a budget
FunkMan53 Fine if you don't do all of the above and end up rich at 50 what the heck is the point of having millions in back at 50? Eating out, shopping, clothes, new car gives you happiness.
Great pointers my friend. I own a business my self. A lot of the people I hire are older than me. All I hear every day is I'm over qualified for this and that. Well I also work a few part times to keep my cash flow going. I consider my self over qualified for those jobs. I do them anyway to avoid taking some BS loan. I'm not broke but however I'm building something and yes that does keep me from buying tickets to see my favorite NFL team! If I can make money instead... "if you want to succeed as much as you want to breathe"
Brian Perez Great attitude. Success is there for those who REALLY WANT IT. The nearly people of this world. Are those who talk the talk without walking the walk.
This guy knows what he's talking about.Another hint,set up a savings plan that comes out of your check before you see it and then forget it.Even if it only a little it will mount up with time.
yeah but for a lot of ppl BOOM a medical emergency happens....medical and school debt are there for a reason...he is using personal extrapolation to dictate what should be
Ok Mo here is the deal. If people had their own money they could spend their own money. I bought a plasma televison this year and I paid cash for it. I stimulated the economy but with my money and I was not left in debt. If people did it this way the economy would remain stimulated and people would not be in debt.
Medicare took all of my Cola and rents are high. I am retired, so it is teach online to stay in my apartment, or drop Medicare, and move to a less expensive and safer country. I am 75, and have been retired for almost 6 years. I do have a small savings, but if I continue to live my pension will not support my life here. You are so correct. I invested in non begging people during my working day, had a home, condos, cars etc. I do have an emergency fund and not any debts. I cook at home, and shop online for groceries. You are correct. I can given much money to family and friends. I cannot do it being retired, but I still help my daughter, and she will be 38 in March, not any children, a d teaches around the world. I will not give her any more money.
+PRLostGalaxy2014 Who says you need to choose? Most of what is is advocating is live cheep. But saving all that money do not help you earn more. It is balance. The ratio is more important. As is where the money comes from.
it is worth buying a new car if you do your homework. it depends on what make and model you buy. I bought a Toyota Tacoma in 07 for 35,000. in 2014 it is still worth 23,000. I paid off this truck in 5 years instead of the 7 years worth of payment. college on the other hand is a business. you learn from experience not from a bs book in college they made you pay 200 bucks for. finally, live within your means. I am 50 and am proud to say I do not owe any credit card debt.
@mohammedabshaun - absolutely correct. If you didn't know who Paul McCartney was and saw him on the street you'd never know he was worth almost a Billion dollars. He dresses in simple clothes, no bling, eats at neighborhood restaurants and drives regular cars. People have a conception of the "rich" as Paris Hilton. If you hang with some very wealthy people who have worked very hard for it, they are relatively reserved in lifestyle.
After you have your savings in line , How do you get started buying and selling things . I already have my savings in check I'm having a hard time finding where to plant it .
Tiger you are completly correct. Not only can you learn a new skill of cooking but you have more option if you make it yourself. It brings a family together and good conversation. Please check more of my videos and please comment.
Well I was referring to people who want to take out a loan to save on interest. Most people take out a 30 year loan and incrue a lot of interest over those years and they only make the minimum payment. People like me and you, who are in the minority of America will only try to pay a house as soon as possible. I can tell by your speech you are one of the few who are doing things correctly. Keep it up.
Lol. Wait until you can't get to work because your used car "that someone else ran into the ground and traded in because it is about to need repairs" car broke down. I buy new for warranty and reliability. Sure it will depreciate, but reliability is important to me. Plus when you add up the time and costs of replacing parts you often aren't coming out ahead. It really depends on your responsibilities and support system.
Disagree. There’s a difference between buying used and buying stupid. I bought my car in 2009, it was a2010 model . It had 10k miles on it, was three months old, and traded into the dealership. It still had the 5 year warranty and was practically brand new. It cost me 20k instead of 27k over 20% off the normal price. I saved 7k because someone else got to drive my car for the first three months. Considering that car value depreciates the most rapidly when its new its almost a no brainer. Let someone else eat that initial depreciation, and you’ll be getting a better value over the life of the vehicle. 9 Years later and I’ve put about $3000 of maintenance into, and its still going strong.
Dude, Instead of talking so much about new fancy cars or homes just pause for a minute and realise there's just ONE true reason why the American poor stay poor. It's just because they can't handle their (own or borrowed) money properly. Money is something that should be respected, not wasted away like trash.
+B.J. Raco It must be wasted like trash, or economy would not work cuz rich make their money with the stupidity of the middle class which are begging for their iphones.
Ryder Spearmann If humans would be reasonable and would stop buying things they dont need to survive, the quote of the rich would drop to 95%, but that is what people dont understand, money MUST stay in circulation and and should not be increased by interest, which is generating money out of nothing.
Why is going back,to the stone age "reasonable"???? What do you gain, by throwing your life away... just in order to make sure that people with more than you... have less? What kind of an ass, is so focused on BRINGING DOWN other people, that they are willing to hurt themselves? You are insane. Money in circulation matters not. TRADE matters. Trade with money, or trade with something else... no real difference, except that money is easier to steal or print. Why do you hate people that have more material wealth than you?
I learned most this in a book called "The Richest man in Babylon" and again more in Rich Dad, Poor Dad and Suzie Orman then Dave Ramsey... Mann forget the haters ! Your Cool bald headed but cool... I have been following many of your same Money Principles, its got me on a good path... Don't forget the difference between Budgeting and Investing ! One will grow your money and the other protects it !
@leathertanner NOT TRUE. Society says the only way to buy a house is to have credit, get a loan(30 years) and to pay on it until the loan reaches its conclusion. WRONG WAY TO DO IT: Why? With standard interest rates a financial institution offers for a home that cost $150,000 U.S> by the end of the 30 yrs. do you know how much you'll pay for that home....on average of $283,000U.S. !!! Average house payment is $1,300 a month for that house. So if you were to rent for $800, take the difference...
If you take out an 80% mortgage you pay 20% less in mortgage payments. Buy small. Live within your means. But the big risk is price slumps, specially combined with a personal disaster such as a job loss or reduction in income. If prices slump, and you are forced to sell, you are then in a position where you are un-able to cover the mortgage by selling the home.
About the car thing. INSURANCE. if you live in a state that does not require you to have insurance. Get it anyway because accidents happen. Next, don't go out and buy the first supercharged-V6-turbo-300HP-GT you find. Your insurance will go up. Take a Mustang for example. Why buy a Cobra or GT when you can get the base package and upgrade the vehicle later. A base mustang is considered a 'sport' car. A base package is considered a 'family coupe'
Financial Control: 1) You cannot always control money input...you can eventually, but not right away. 2) Money Output is ALWAYS controllable... 3) Investments and Savings run on a snowball effect. The more you put in the bigger it gets. The longer you don't touch investment money...the quicker you will become financially free. 4) Live below your means..which is the behavior thing that you should continue regardless of your current financial status. It must become HABIT. 5) SELF-DISCIPLINE...!!
You can buy a used car, take it directly to a mechanic, fix it so it is like new, and still save a ton of money. I've had a used far for over a year, and the only thing I paid for were new tires. If I bought new, the depreciation would have been more then what I paid for my current car by now.
solid advice and informative. let me ask you why do you recomend paying your house off first instead of investing the money you save? I've heard both have goods and bads but I want your opinion.
Hey I really liked this advice, Mohammed! Excellent! Very smart and straightforward...I can see that you thought this through. I live a very frugal life myself, so I can appreciate this. You might want to add three more items: 1. Invest that saved money in a high interest account (to benefit from compound interest which is huge) 2. Watch out for get rich quick schemes!! People lose their entire fortunes this way 3. Stay healthy and safe--medical expenses can financially destroy you
The biggest piece of advice is to avoid ever having to pay child support. The budget part is the only thing I disagree with. You sould make at least few $100 more than your expenses each month, then just set savings goals. If you want a big ticket item, just set aside a small amount each month until you can afford it.
Really appreciate the time and effort you put into the video. Full of good sound advice which can help many people who are stuck in the cycle of consumerism. A real signpost on how to negotiate the temptations of life and sleep easy without the worry and trauma that can follow in the footsteps of foolish spending. Thank you for posting
I have no money as I have too much compassion for my own good. I rescue dogs and horses which need food and care. I live off grid, building my own house with tyres and dirt, so I wont need much money at all. I own an old car which gets me about.. I will never walk past an animal in need, and every day I look at them, I smile and see how fulfilled my life is. the view I have is sea and mountains..what else do I want? nothing.
yes. but he said, "pay with cash". you don't worry about interest if you don't owe money. and, chances are, if your car isn't brand new, it's not crazy expensive. what he's talking bout is the fact that as long as you owe money to anyone, bank, your friend, the credit card company, you're owned... read, The Millionaire Mind, it's an awesome book. :)
This is a very, very good video. I'd like add, that in terms of a property a two or three family home as a starter home makes more sense. The house is called a "asset" but anything that costs you money is a liability. But a house that produces income is an asset.
What sort of property for investment can you buy for 20% of the value of your home ? Most people work in paid employment. They do not necessarily have the time or expertise to manage investment property. And you have still not got over the problem of risk if, with a 100% mortgage. Say you lose your job. The return from any 20% investment will barely help. It just gives you an extra headache. You may now have to sell 2 properties quickly. No. Pay your mortgage down first.
Also, if you're putting 0% down on a house, to not be "house poor", buy a cheaper house. They have mortgages these days through fannie mae homepath where you can put 0% down and have no Property Mortgage Insurance (PMI). I feel that people need to concentrate on buying cash flowing properties before paying off their primary residence.
@Yankhadenough I think he means refinance on another 30 year loan. Yes there are some instances where refinancing is beneficial like switching from a 30 year loan to a 15 year loan and getting a lower interest rate, but many people refinance or get a second mortgage so they can use it like a credit card and just dig themselves deeper into a hole. I would say credit is the #1 problem currently facing the middle class.
I think that the poster of this video is right on. Pay heed to him. Nothing makes a person more free than being free of debt & being financially secure.
It annoys me when people say cars are bad invesments. When people buy cars they're not thinking about investing. Everything is not about investment and business. Sometimes you gotta enjoy life. Remember that.
I am surprised more people don't say stuff like this. This makes absolutely perfect sense. What makes you wealthy or not is not about how much money you have, but how you spend it. It is amazing how many people don't realize that, even after they are told that. I guess some people will just always be poor and it is nobody's fault but their own. To this day I still usually fix myself PB&J for lunch, not because I love the taste, but because I can save a ton of money versus eating out.
I'll be forwarding this on to some people. :-) I have NO debt other than mortgage, own two houses, rent one out, and I put 20% and 25% down on them. I plan to move to the small one when I retire. I don't have trendy clothes, or a new car, or all the toys and gadgets but I have peace of mind. My retirement funds are in the 6-figures and hope to be a millionaire someday. 12 years ago I had $28k to my name when I bought my first house as a single woman and I've done it all on my own.
He's right, a car is a depreciating asset. One of the greatest deals out there are the auto mechanics. Talk to a few neighbors and ask where they take their vehicle to get repaired. Once you have a good, trustworthy mechanic, then you go out and purchase either a Honda or Toyota or even look to see which auto manufacturers have vehicles that really maintain their value over time, that indicates that those vehicles have low auto repairs because they were designed so well. I'd recommend the top of the line like a Camry XLE because buyers of the fully loaded vehicles rather than the base model tend to take really good care of their vehicles. You can get a good vehicle for $5,000.00 with about 100,000 miles that will last you easily 250,000 to 300,000 miles. I'll take my car into my mechanic twice a year and just ask him to check it over and see if anything needs to be repaired. Half the time he only finds minor issues less than $100 and the other half, he'll find something like the muffler or the brakes that cost less than $300.00. Seriously, the average annual maintenance cost for a reliable car is usually $400 to $500 a year. You cannot beat that, people are paying that a month just to drive a new vehicle.
Yes very true. I have a Honda and i love it minor repairs here and there. Best thing i own it , no car payments paid for in cash!! 😁 have a friend with two cars stressing over paying 2 car payments working her ass off. I keep telling her that cars are and will always be money pits.
I had to get burned after making car payments for a decade, then I realized that my job was looking to lay me off, so I wised up and realized that I wanted at least one car that was paid off. Well, I'm glad that I did, because it took me two years to find another job (thanks, obama) At least I owned my vehicle before then. I've worked for Toyota and Honda and finally figured out what a lot of people should figure out. Cars are made so well these days, just find a good used one and keep it maintained. Spend your money somewhere else.
Wow! I really appreciate the rich lesson. I've downloaded so that I could show my daughter when I go home for holy day leave, since I'm on job in another distant place. My daughter is one of the outstanding students in the class. But the problem is that she is pushed to take time for study. If this continues, then it is a great threat against the bright future of my daughter, and she will be out of the game. That's why I have appreciated this video. Thanx again.
I agree re-financing a home for something you don't need isn't the best decision there is to make. However if our loan reaches a maturity with our bank. Meaning the time to re-pay that loan is over. The borrower has no other choice to re-finance if they want to keep living in that home by borrowing the $ from another bank to take over the loan.
I would actually recommend people initially get a yurt. Low cost, LOW maintenance, and a great place to think. Save money, and great for renting if you're in the right area as it's a nice open space with lots of room and something unique.
I think credit cards can be used to an advantage though. Lets say you need to make a large purchase and your card gives you some kind of point system. You can set aside that real amount of money, use the credit card, then immediately pay off the card. You've not only spared yourself any additional cost from having to pay off the debt, but you've just gained some cool rewards. Unfortunately this requires a lot of discipline, which is basically what people mostly lack.
This guy makes a lot of sense and explains it in a common sense way. Curtains are tacky and couch prob is a craigslist find but he prob has more money in the bank than someone with an HGTV looking room. I disagree with his paying off the house early rule. Save the money instead and you will have enough to get by if you lose your job. W/O a job you can't get a loan, even if you only have 5 years left in the mortgage.
@v12tommy yes, that would be unwise. But I just wanted to differentiate between REFI and Home Equity Loan, two entirely different animals . One is healthy to reduce interest and years of paying, the other is the moneypit of which you speak
I do agree with your other points... borderline on the house thing. I don't think renting the same house for 500 more a month and never getting ANY of that investment back in the long run is better than buying the same home, with lower monthly payments, with the high(er) possibility of at LEAST making your money back when you sell. I think if you can buy a house and you're living within your means and the house is valued at the price you're buying it for... you're better off than renting.
I agree with the most part, but you have to take care your family. I have two brothers and my mom living outside the united states, as a student, I also work full time and I'm I proud to help them by sending them at least five hundreds dollars a month..Family come first!
I disagree with him saying a car is a bad investment. Yes you don't have to buy a new car, but plenty of people get this wrong. A car is a good investment if you factor in the fact it pays for itself by getting you to work especially if you have no alternate public transportation. Also you can drive uber and make the car pay for itself
My dad got a car for around a grand a few years ago. So far, it has gotten my sister through 4 years of college and myself through 2 years after her. I love my 1995 Toyota Camry.
If you lose your job, you may be forced to sell. If house prices have gone down, a house bought for 100,000 might be worth 85,000. You sell your home, but you still owe 15,000. Buying assets when you have debt is NOT normally a good move. Normally, income from the asset will be outweighed by the percentage interest you are paying for the mortgage. If your asset pays a return of 10%, your mortgage might be 15%. So, you are better off paying the mortgage off.
This video is great! However, there is one more reason I think you should have included which is bad habits like smoking, excessive drinking, or slurping sodas. All three of those bad habits are expensive and detrimental one's health.
If you have Good Credit then it's more PRUDENT to Long Term Lease a Brand New Car. The payments are MUCH LOWER than Buying a Car. When you buy a Used Car then you are just buying someone else's REJECT. Repair bills will eat you alive. So you can spend about the same driving New Wheels, or, you can spend it REPAIRING someone else's NIGHTMARE. Just MAINTAIN GOOD CREDIT and you can Roll Over the leases once every Two Years to Two and a Half Years, while driving Repair Free Newer Wheels.
All his comments are great. Let me add something. Saving for 20 years means nothing if you save up a million or 2 and dont live well. Well, you gotta be frugal at first, invest that money from that year or if it takes you 5. $10k to 100k whatever you can save and try to work for yourself. Create a business partner if dont have enough. It will change your life. money makes money, w/o you will never make more of it. start a business or create a product, simple as that.
The people who say something is too expensive to do or buy are the same ones who go on a lavish spending spree on things they don't want in the first place. They buy all these latest fashion and state of the art gadgets, but they can't enroll in some part-time college course because it's too expensive. Does that make sense?
200,000 is easy to turn into millions. if you got that kind of money, then you will have no problem investing in those lines that go up and down like the rocky mountains. remember this number 1 rule to investing and you'll be alright. "Whatever the masses are doing, do the opposite" "if the majority are buying, then you sell" "if the masses are selling, you buy" "if the sheep herd goes left, you go right" #1 rule to winning with investments.
Buying a new car is not a great investment or even a good investment. Don't get me wrong I see your point buying a new car or car period is necessary because of the convenience it provides. But like they say if you are going to buy a new car get one as cheaply as possible try not to pay sticker. But every one knows cars, boats...etc depreciate alot over the years. I got a brand new car a few years ago but I made sure I negotiated a price under the sticker price for it.
.... i dont think you get what hes going for. the quicker you pay off the house the cheaper it is. loans grow with time a 15 year loan may mean your paying more now but it means you'll be paying less in the long run. also the interest rates are lower on most 15 year loans compared to 30 years. 500k house /15 years = $33,333 + interest a year yes its a lot but after those 15 years ITS PAID the 30 year loan your in debt longer and paying double the interest in the long term..
New car is a bad idea if you hold it 10 years, let it go to shit, then sell it for 1k. You gotta either keep it mint, sell it on while it still has value. or be a shade tree mechanic and keep it 25+ years with impeccable maintenance record for max reliability. Then you get the best of both worlds, you are first owner so you know the vehicle has never been treated bad. and you have 15-20 years of no car payment without massive repair bills. While we are on the topic of cars. what is your view on leasing? IMO its far worse than buying, because you do not gain ownership after years of payments. But on the flip side, you dont really have to worry about maintence issues that come with ownership. But its still not as good an option as buying new to keep till you run the wheels off it, or buying a good used car and running the wheels off it.
important tips people may not WANT to hear but NEED to hear. My biggest weakness is I have too big of a heart, lending to others who deep down I know might not be able to pay back. even when I didn't think I could afford to but did anyway because they were in a worse situation
AWESOME video! I couldn't agree with you more of what you have shared here. If people would only use common sense in managing their finances, many would be living a stress-free life. If we just start recognizing between what we "need" and what we "want". We all know what we want, but what we need is all that matters, really!! Great share, thank you! :)
Really Great videos!! When I was 20 I had a friend at the University whose father had 100 cows and sold milk for a living. I said that I would study cow farming in the bible and tell my friend Jenny what wisdom the Bible had for cow farmers. The more I studied Genesis 13:2 I saw that the cattle, the silver and the gold were 3 types of money: your career, your cash flow and your investments. The secrets are 1 be a specialist in your career, 2 live on a budget and 3 buy a home at the right time
he got good points why people have no money. ask this question to yourself how long can you live without a pay check ??/ and that determinate if you are rich or poor?
People in USA buy things which they can't have while people in China save 50% of their salary.What do we have? China is main creditor to USA. Read Farid Zakaria - Post American World: "So the average American household now has 13 credit cards, 40 percent of which have an outstanding balance. Debt has gone from $700 billion in 1974 to $14 trillion now."
I feel this advice is more for lower middle class than the truly poor. If you're really poor, you can't even save for emergencies, buy a house/car, or go out.
I have to say to you, AMEN. I hate these people that 'aint got no money to pay the rent, no money to pay the cable, aint got no money to pay for gas in the car' and yet every night, they are eating out in a resturaunt, getting the newest video game for their Xbox, bought themselves a new Iphone. They are out getting their coach bags or out at the club every week. And 6000 channels they dont watch' You said it a few times and it is the best words of the whole video. BE RESPONSIBLE!
I have to disagree, which is ok. I would never recommend anyone to manage their own property. Hire a property manager for 8-10% that way you have more time and less stress so that you can just concentrate on the numbers, not the property management. If you buy an investment property for 100k with 20% down that cash flows 400/month, you can get all of your cash back that you put into it in less than five years. After you get your cash back, you will still have the property, cash-flow, andequity
Abdul, I don't mean to contradict you, but I do all the things you said, except writing down a budget, and I'm still poor. I don't mind admitting. A psychiatric institution has me on a drug that pretty much makes me incapable of working. It's all bogus. There's no problem with me, and my mother, brother and father know it, but they still play along as if there is. I want to work, but I've tried and gotten fired. Severe problems sleeping and fatigue comes with this drug...and I have to use the bathroom frequently. I pray to God about this, and I know you're a Muslim, and God will change things. I'm sure. Then things will change. It's good to know what to do when things change. You give good advice. GOOD VIDEO. GOOD POINTS. Most people don't do what you say, but my father was very conservative with money and I am too. I know keeping it is the first thing people need to do! Salaam alekum--My friend and roommate was Muslim.
This is good stuff. I don't even own a car, I ride a bike or take the bus. This is easier cause I live in the city but I understand if people live in the burbs; people are too concerned with flash and impressing other people. The car thing is soooo fucking spot on. Cars are worth a lot more to a person than their cost, but you can still maximize on that margin. Way I see it, unless you have children and are concerned with safety, there is no reason to buy a new car.
How is it more of a risk to have a 100% mortgage compared to an 80% mortgage? The risk comes into the monthly payments. That is determined on how much expensive their primary residence is. People need to financially educate themselves so that they don't have to "work" for money their entire life. They need to learn how to use leverage of Other Peoples Money (OPM) and Other Peoples Time (OPT) by buying cash-flowing assets.
and i also bought a car cash after that and inherited all kinds of problems. So running around in a hooptie can be a bad investment as well. i.e. 5k on a car that lasts three years, is a worse investment than an AFFORDABLE newer car that lasts 10-15 years.
Don't listen to this man. He speaks common sense. Just put it on the charge card. You deserve it. Everybody else is living like rockstars, why can't you? Yeeeeeeaaaaaahhh. I like this guy. Being fiscally responsible is not conservative or liberal. It's just common sense. Steady on, my man.
@TheDJSTALKER And they aren't just "poor people", do you think that every upper middleclass kid in the Lakeside Prep School in the class of Lakeside Prep made it into the "top 5%"
Refinancing is not dumb, that is just when you REDUCE your interest and years of mortgage payments!!! Refi will get you that property deed into your hands faster!!! What is DUMB is getting a HOME EQUITY LOAN, that just towards paying for more stuff or other bills, that's the people who get a home loan to get a new jet ski!
Its amazing the lack of financial responsibility people in America have. Though I do not agree with all your points in the video, i must say if more people followed the advice you have outlined many people across this nation would be in a better situation financially.
You a very good and 100% true with everything you said. Please continue to speak and maybe start giving seminars, if you're not already. I am sure you'll do really well like Tony Robbins. thanks for posting!
good for you. one of my car's has 284,000. however if I get enough money I will buy a newer car or lease a new one. for hire car service a new car is an investment. it will last longer , not have as many problems, make me late for work....etc. however I agree for most poor people learn to work on your own stuff & buy something used at the auto auction for cash. buy here pay here do the same and sell the car for 5 times more than they paid , after doing nothing to the car but a battery.
I watched this video years ago right out of high school. Tip #6, about having an emergency fund, has helped immensely. Everyone in my family has called me crazy, yelling at me to spend more money for the "family," but I always told them that I need to maintain some savings, or we could fall into major trouble. At times they were very aggressive attempting to force me to dump my savings to buy a new dvd player, or a down payment for a new car, as my sister did, but I refused.
Recently, our land lord gave a notice requiring that we move out, as she is selling the property. Guess what? They had no money, and could not even afford to rent a moving truck. It was my savings that got us out, and it was even my savings which provided for a down payment on a house to give us a low interest rate. They still fail to admit that I was right for pinching every penny, but now I have a greater reason to continue using simple financial common sense.
Money is a tool, and all tools need to be treated with respect.
+Tr1llobite you are very wise young man
Tr1llobite Continue to follow your own advice. They won't admit you're right but they will reap the benefits of your smart planning.😕
Tr1llobite if your family failed to see what you have done,then their ungrateful. In my life I've learned that sometimes you have to let family go as well as anyone else because they can and will hender you. good thing you think for yourself bro.
This was a nice read! Keep up with the awesome decision making.
Parents that want to be stuck in their old ways depending on everybody and everything
WHEN thiNGS ArEE SloW I PuLl MY WiENeR oUt
First thing: do NOT go to college unless you are focused on a specific major that gets you a high paying job. Most majors outside STEM (science, tech, engineering and math, which includes finance, statistics and actuarial) are worthless. If you want to learn History, pick up a book, especially an old book, and teach yourself, do not go to college for indoctrination. For most people college is a horrible waste of time, money and a risk of your morals.
and for those who dont have a career in mind, anyone working full time anywhere should be paid a living wage
I was a history major and then went for aa Master's in education. That . was many years ago. I retired as director one year ago, and although I was never a millionaire I always did well.
I was with you until the indoctrination part
This is the guy who threw his wife a $25 anniversary party on extreme cheapskates
(Now ex wife)
the hipocrisy tho
YES!!
People think I'm crazy for not buying a new car. I drive a 2001 Hyundai Accent. But it's mine and it's paid for. My goal is to create residual income from my two books and to create jobs for my children. Love this vid
RIGHT ON, also my mom said if you cannot put bread on the table don't make babies,
1. 0:44 new car
2. 2:01 home
3. 3:18 doo-dads
4. 4:11 brand-name clothes
5. 5:07 refinancing
6. 5:48 save money
7. 6:21 eating out
8. 6:53 going out too much
9. 7:23 loaning money out
10 8:09 have a budget
Thanks, I used it.
Cheers buddy I used this too!
Should be added to the description!
FunkMan53 Fine if you don't do all of the above and end up rich at 50 what the heck is the point of having millions in back at 50? Eating out, shopping, clothes, new car gives you happiness.
Great pointers my friend. I own a business my self. A lot of the people I hire are older than me. All I hear every day is I'm over qualified for this and that. Well I also work a few part times to keep my cash flow going. I consider my self over qualified for those jobs. I do them anyway to avoid taking some BS loan. I'm not broke but however I'm building something and yes that does keep me from buying tickets to see my favorite NFL team! If I can make money instead...
"if you want to succeed as much as you want to breathe"
I agree Brian good for you sir.
Brian Perez
Great attitude. Success is there for those who REALLY WANT IT. The nearly people of this world. Are those who talk the talk without walking the walk.
This guy knows what he's talking about.Another hint,set up a savings plan that comes out of your check before you see it and then forget it.Even if it only a little it will mount up with time.
+Denise Hall Not a good idea, pay off ALL debts first and then invest.
Denise Hall It's a great idea! I do this while paying off debts. Rich people pay themselves first.
kikilicious99 I do the same I agree
yeah but for a lot of ppl BOOM a medical emergency happens....medical and school debt are there for a reason...he is using personal extrapolation to dictate what should be
Ok Mo here is the deal. If people had their own money they could spend their own money. I bought a plasma televison this year and I paid cash for it. I stimulated the economy but with my money and I was not left in debt. If people did it this way the economy would remain stimulated and people would not be in debt.
Medicare took all of my Cola and rents are high. I am retired, so it is teach online to stay in my apartment, or drop Medicare, and move to a less expensive and safer country. I am 75, and have been retired for almost 6 years. I do have a small savings, but if I continue to live my pension will not support my life here.
You are so correct. I invested in non begging people during my working day, had a home, condos, cars etc. I do have an emergency fund and not any debts. I cook at home, and shop online for groceries. You are correct. I can given much money to family and friends. I cannot do it being retired, but I still help my daughter, and she will be 38 in March, not any children, a d teaches around the world. I will not give her any more money.
If all minorities think like you Abdul, we all be successful!
Amen brother. I rather live poor and cheap than live greedy and rich.
+PRLostGalaxy2014 Who says you need to choose? Most of what is is advocating is live cheep. But saving all that money do not help you earn more. It is balance. The ratio is more important. As is where the money comes from.
it is worth buying a new car if you do your homework. it depends on what make and model you buy. I bought a Toyota Tacoma in 07 for 35,000. in 2014 it is still worth 23,000. I paid off this truck in 5 years instead of the 7 years worth of payment. college on the other hand is a business. you learn from experience not from a bs book in college they made you pay 200 bucks for. finally, live within your means. I am 50 and am proud to say I do not owe any credit card debt.
The question is 'are you going to retire with at least a million and a half dollars?'
yes
between me and my husband we have 2 pensions coming in that are secured.
@mohammedabshaun - absolutely correct. If you didn't know who Paul McCartney was and saw him on the street you'd never know he was worth almost a Billion dollars. He dresses in simple clothes, no bling, eats at neighborhood restaurants and drives regular cars. People have a conception of the "rich" as Paris Hilton. If you hang with some very wealthy people who have worked very hard for it, they are relatively reserved in lifestyle.
u dont have to eat ramen noodles and live like a peasant
After you have your savings in line , How do you get started buying and selling things . I already have my savings in check I'm having a hard time finding where to plant it .
Tiger you are completly correct. Not only can you learn a new skill of cooking but you have more option if you make it yourself. It brings a family together and good conversation. Please check more of my videos and please comment.
saving an emergency fund this year. hopefully in two years i can have saved 12 months expenses.
you need to do things now to pay your future self.
Well I was referring to people who want to take out a loan to save on interest. Most people take out a 30 year loan and incrue a lot of interest over those years and they only make the minimum payment. People like me and you, who are in the minority of America will only try to pay a house as soon as possible. I can tell by your speech you are one of the few who are doing things correctly. Keep it up.
Lol. Wait until you can't get to work because your used car "that someone else ran into the ground and traded in because it is about to need repairs" car broke down. I buy new for warranty and reliability. Sure it will depreciate, but reliability is important to me. Plus when you add up the time and costs of replacing parts you often aren't coming out ahead. It really depends on your responsibilities and support system.
Disagree. There’s a difference between buying used and buying stupid. I bought my car in 2009, it was a2010 model . It had 10k miles on it, was three months old, and traded into the dealership. It still had the 5 year warranty and was practically brand new.
It cost me 20k instead of 27k over 20% off the normal price. I saved 7k because someone else got to drive my car for the first three months. Considering that car value depreciates the most rapidly when its new its almost a no brainer. Let someone else eat that initial depreciation, and you’ll be getting a better value over the life of the vehicle. 9 Years later and I’ve put about $3000 of maintenance into, and its still going strong.
Dude, Instead of talking so much about new fancy cars or homes just pause for a minute and realise there's just ONE true reason why the American poor stay poor. It's just because they can't handle their (own or borrowed) money properly. Money is something that should be respected, not wasted away like trash.
B.J. Raco I think that's the point... people need to be educated a bit on how to properly use money... and this list is a decent start.
+B.J. Raco It must be wasted like trash, or economy would not work cuz rich make their money with the stupidity of the middle class which are begging for their iphones.
Jonas C. Who do the middle class make their money "off of"?
I can't wait to hear this... because you know what I will ask next... right?
Ryder Spearmann If humans would be reasonable and would stop buying things they dont need to survive, the quote of the rich would drop to 95%, but that is what people dont understand, money MUST stay in circulation and and should not be increased by interest, which is generating money out of nothing.
Why is going back,to the stone age "reasonable"????
What do you gain, by throwing your life away... just in order to make sure that people with more than you... have less?
What kind of an ass, is so focused on BRINGING DOWN other people, that they are willing to hurt themselves?
You are insane.
Money in circulation matters not. TRADE matters. Trade with money, or trade with something else... no real difference, except that money is easier to steal or print.
Why do you hate people that have more material wealth than you?
I learned most this in a book called "The Richest man in Babylon" and again more in Rich Dad, Poor Dad and Suzie Orman then Dave Ramsey...
Mann forget the haters ! Your Cool bald headed but cool... I have been following many of your same Money Principles, its got me on a good path...
Don't forget the difference between Budgeting and Investing ! One will grow your money and the other protects it !
@leathertanner NOT TRUE. Society says the only way to buy a house is to have credit, get a loan(30 years) and to pay on it until the loan reaches its conclusion. WRONG WAY TO DO IT: Why? With standard interest rates a financial institution offers for a home that cost $150,000 U.S> by the end of the 30 yrs. do you know how much you'll pay for that home....on average of $283,000U.S. !!! Average house payment is $1,300 a month for that house. So if you were to rent for $800, take the difference...
If you take out an 80% mortgage you pay 20% less in mortgage payments. Buy small. Live within your means.
But the big risk is price slumps, specially combined with a personal disaster such as a job loss or reduction in income.
If prices slump, and you are forced to sell, you are then in a position where you are un-able to cover the mortgage by selling the home.
About the car thing. INSURANCE. if you live in a state that does not require you to have insurance. Get it anyway because accidents happen. Next, don't go out and buy the first supercharged-V6-turbo-300HP-GT you find. Your insurance will go up. Take a Mustang for example. Why buy a Cobra or GT when you can get the base package and upgrade the vehicle later. A base mustang is considered a 'sport' car. A base package is considered a 'family coupe'
you can buy a gaming computer and only change the cpu every 5 years. Not only that you can get the new game from internet half the cost
Financial Control:
1) You cannot always control money input...you can eventually, but not right away.
2) Money Output is ALWAYS controllable...
3) Investments and Savings run on a snowball effect. The more you put in the bigger it gets. The longer you don't touch investment money...the quicker you will become financially free.
4) Live below your means..which is the behavior thing that you should continue regardless of your current financial status. It must become HABIT.
5) SELF-DISCIPLINE...!!
You can buy a used car, take it directly to a mechanic, fix it so it is like new, and still save a ton of money.
I've had a used far for over a year, and the only thing I paid for were new tires. If I bought new, the depreciation would have been more then what I paid for my current car by now.
solid advice and informative. let me ask you why do you recomend paying your house off first instead of investing the money you save? I've heard both have goods and bads but I want your opinion.
Hey I really liked this advice, Mohammed! Excellent! Very smart and straightforward...I can see that you thought this through. I live a very frugal life myself, so I can appreciate this. You might want to add three more items: 1. Invest that saved money in a high interest account (to benefit from compound interest which is huge) 2. Watch out for get rich quick schemes!! People lose their entire fortunes this way 3. Stay healthy and safe--medical expenses can financially destroy you
so straight forward. it hurts but i like it
The biggest piece of advice is to avoid ever having to pay child support. The budget part is the only thing I disagree with. You sould make at least few $100 more than your expenses each month, then just set savings goals. If you want a big ticket item, just set aside a small amount each month until you can afford it.
Really appreciate the time and effort you put into the video. Full of good sound advice which can help many people who are stuck in the cycle of consumerism. A real signpost on how to negotiate the temptations of life and sleep easy without the worry and trauma that can follow in the footsteps of foolish spending. Thank you for posting
I have no money as I have too much compassion for my own good. I rescue dogs and horses which need food and care. I live off grid, building my own house with tyres and dirt, so I wont need much money at all. I own an old car which gets me about.. I will never walk past an animal in need, and every day I look at them, I smile and see how fulfilled my life is. the view I have is sea and mountains..what else do I want? nothing.
yes. but he said, "pay with cash". you don't worry about interest if you don't owe money. and, chances are, if your car isn't brand new, it's not crazy expensive. what he's talking bout is the fact that as long as you owe money to anyone, bank, your friend, the credit card company, you're owned... read, The Millionaire Mind, it's an awesome book. :)
This is a very, very good video. I'd like add, that in terms of a property a two or three family home as a starter home makes more sense. The house is called a "asset" but anything that costs you money is a liability. But a house that produces income is an asset.
Real talk there...you just got a new subscriber
Who's watching 2020
What sort of property for investment can you buy for 20% of the value of your home ?
Most people work in paid employment. They do not necessarily have the time or expertise to manage investment property.
And you have still not got over the problem of risk if, with a 100% mortgage. Say you lose your job. The return from any 20% investment will barely help. It just gives you an extra headache. You may now have to sell 2 properties quickly.
No. Pay your mortgage down first.
Also, if you're putting 0% down on a house, to not be "house poor", buy a cheaper house. They have mortgages these days through fannie mae homepath where you can put 0% down and have no Property Mortgage Insurance (PMI).
I feel that people need to concentrate on buying cash flowing properties before paying off their primary residence.
@Yankhadenough I think he means refinance on another 30 year loan. Yes there are some instances where refinancing is beneficial like switching from a 30 year loan to a 15 year loan and getting a lower interest rate, but many people refinance or get a second mortgage so they can use it like a credit card and just dig themselves deeper into a hole. I would say credit is the #1 problem currently facing the middle class.
I think that the poster of this video is right on. Pay heed to him. Nothing makes a person more free than being free of debt & being financially secure.
It annoys me when people say cars are bad invesments. When people buy cars they're not thinking about investing. Everything is not about investment and business. Sometimes you gotta enjoy life. Remember that.
I am surprised more people don't say stuff like this. This makes absolutely perfect sense. What makes you wealthy or not is not about how much money you have, but how you spend it. It is amazing how many people don't realize that, even after they are told that. I guess some people will just always be poor and it is nobody's fault but their own. To this day I still usually fix myself PB&J for lunch, not because I love the taste, but because I can save a ton of money versus eating out.
my car has 150,000 miles bought it for $3500 and I am still moving. Premaintenance is all you need.
I'll be forwarding this on to some people. :-) I have NO debt other than mortgage, own two houses, rent one out, and I put 20% and 25% down on them. I plan to move to the small one when I retire. I don't have trendy clothes, or a new car, or all the toys and gadgets but I have peace of mind. My retirement funds are in the 6-figures and hope to be a millionaire someday. 12 years ago I had $28k to my name when I bought my first house as a single woman and I've done it all on my own.
He's right, a car is a depreciating asset. One of the greatest deals out there are the auto mechanics. Talk to a few neighbors and ask where they take their vehicle to get repaired. Once you have a good, trustworthy mechanic, then you go out and purchase either a Honda or Toyota or even look to see which auto manufacturers have vehicles that really maintain their value over time, that indicates that those vehicles have low auto repairs because they were designed so well. I'd recommend the top of the line like a Camry XLE because buyers of the fully loaded vehicles rather than the base model tend to take really good care of their vehicles. You can get a good vehicle for $5,000.00 with about 100,000 miles that will last you easily 250,000 to 300,000 miles. I'll take my car into my mechanic twice a year and just ask him to check it over and see if anything needs to be repaired. Half the time he only finds minor issues less than $100 and the other half, he'll find something like the muffler or the brakes that cost less than $300.00. Seriously, the average annual maintenance cost for a reliable car is usually $400 to $500 a year. You cannot beat that, people are paying that a month just to drive a new vehicle.
Yes very true. I have a Honda and i love it minor repairs here and there. Best thing i own it , no car payments paid for in cash!!
😁 have a friend with two cars stressing over paying 2 car payments working her ass off. I keep telling her that cars are and will always be money pits.
I had to get burned after making car payments for a decade, then I realized that my job was looking to lay me off, so I wised up and realized that I wanted at least one car that was paid off. Well, I'm glad that I did, because it took me two years to find another job (thanks, obama) At least I owned my vehicle before then.
I've worked for Toyota and Honda and finally figured out what a lot of people should figure out. Cars are made so well these days, just find a good used one and keep it maintained. Spend your money somewhere else.
@MrHoppers002 Why should he keep it to himself?
what if you are not poor, instead, far from poor? is it okay to shop at nice stores?
Wow! I really appreciate the rich lesson. I've downloaded so that I could show my daughter when I go home for holy day leave, since I'm on job in another distant place. My daughter is one of the outstanding students in the class. But the problem is that she is pushed to take time for study. If this continues, then it is a great threat against the bright future of my daughter, and she will be out of the game. That's why I have appreciated this video. Thanx again.
I agree re-financing a home for something you don't need isn't the best decision there is to make. However if our loan reaches a maturity with our bank. Meaning the time to re-pay that loan is over. The borrower has no other choice to re-finance if they want to keep living in that home by borrowing the $ from another bank to take over the loan.
I would actually recommend people initially get a yurt. Low cost, LOW maintenance, and a great place to think. Save money, and great for renting if you're in the right area as it's a nice open space with lots of room and something unique.
I think credit cards can be used to an advantage though. Lets say you need to make a large purchase and your card gives you some kind of point system. You can set aside that real amount of money, use the credit card, then immediately pay off the card. You've not only spared yourself any additional cost from having to pay off the debt, but you've just gained some cool rewards. Unfortunately this requires a lot of discipline, which is basically what people mostly lack.
This guy makes a lot of sense and explains it in a common sense way. Curtains are tacky and couch prob is a craigslist find but he prob has more money in the bank than someone with an HGTV looking room. I disagree with his paying off the house early rule. Save the money instead and you will have enough to get by if you lose your job. W/O a job you can't get a loan, even if you only have 5 years left in the mortgage.
@v12tommy yes, that would be unwise. But I just wanted to differentiate between REFI and Home Equity Loan, two entirely different animals . One is healthy to reduce interest and years of paying, the other is the moneypit of which you speak
Here is the million dollar question.Do all people use common sense? That is what success is common sense.
I prefer thrift stores and dollar stores! Can stretch 10 dollars really far at the dollar store! Good ideas on your youtube post, thank you!
I do agree with your other points... borderline on the house thing. I don't think renting the same house for 500 more a month and never getting ANY of that investment back in the long run is better than buying the same home, with lower monthly payments, with the high(er) possibility of at LEAST making your money back when you sell. I think if you can buy a house and you're living within your means and the house is valued at the price you're buying it for... you're better off than renting.
Simple yet important. Follow most of these tips on a daily basis.
I agree with the most part, but you have to take care your family. I have two brothers and my mom living outside the united states, as a student, I also work full time and I'm I proud to help them by sending them at least five hundreds dollars a month..Family come first!
I disagree with him saying a car is a bad investment. Yes you don't have to buy a new car, but plenty of people get this wrong. A car is a good investment if you factor in the fact it pays for itself by getting you to work especially if you have no alternate public transportation. Also you can drive uber and make the car pay for itself
My dad got a car for around a grand a few years ago. So far, it has gotten my sister through 4 years of college and myself through 2 years after her. I love my 1995 Toyota Camry.
If you lose your job, you may be forced to sell.
If house prices have gone down, a house bought for 100,000 might be worth 85,000.
You sell your home, but you still owe 15,000.
Buying assets when you have debt is NOT normally a good move. Normally, income from the asset will be outweighed by the percentage interest you are paying for the mortgage.
If your asset pays a return of 10%, your mortgage might be 15%. So, you are better off paying the mortgage off.
This video is great! However, there is one more reason I think you should have included which is bad habits like smoking, excessive drinking, or slurping sodas. All three of those bad habits are expensive and detrimental one's health.
@belmonciara A "shady house" wouldn't have crown molding... check the upper left corner of the frame. I question your powers of observation.
if I had the money I would buy a new car any day. it's a great investment instead of plowing money into a used car, plus mechanics ... etc.
If you have Good Credit then it's more PRUDENT to Long Term Lease a Brand New Car. The payments are MUCH LOWER than Buying a Car.
When you buy a Used Car then you are just buying someone else's REJECT. Repair bills will eat you alive.
So you can spend about the same driving New Wheels, or, you can spend it REPAIRING someone else's NIGHTMARE.
Just MAINTAIN GOOD CREDIT and you can Roll Over the leases once every Two Years to Two and a Half Years, while driving Repair Free Newer Wheels.
All his comments are great. Let me add something. Saving for 20 years means nothing if you save up a million or 2 and dont live well. Well, you gotta be frugal at first, invest that money from that year or if it takes you 5. $10k to 100k whatever you can save and try to work for yourself. Create a business partner if dont have enough. It will change your life. money makes money, w/o you will never make more of it. start a business or create a product, simple as that.
The people who say something is too expensive to do or buy are the same ones who go on a lavish spending spree on things they don't want in the first place. They buy all these latest fashion and state of the art gadgets, but they can't enroll in some part-time college course because it's too expensive. Does that make sense?
200,000 is easy to turn into millions. if you got that kind of money, then you will have no problem investing in those lines that go up and down like the rocky mountains. remember this number 1 rule to investing and you'll be alright. "Whatever the masses are doing, do the opposite" "if the majority are buying, then you sell" "if the masses are selling, you buy" "if the sheep herd goes left, you go right" #1 rule to winning with investments.
I have a bad habit of eating out too much
Buying a new car is not a great investment or even a good investment. Don't get me wrong I see your point buying a new car or car period is necessary because of the convenience it provides. But like they say if you are going to buy a new car get one as cheaply as possible try not to pay sticker. But every one knows cars, boats...etc depreciate alot over the years. I got a brand new car a few years ago but I made sure I negotiated a price under the sticker price for it.
.... i dont think you get what hes going for. the quicker you pay off the house the cheaper it is. loans grow with time a 15 year loan may mean your paying more now but it means you'll be paying less in the long run. also the interest rates are lower on most 15 year loans compared to 30 years. 500k house /15 years = $33,333 + interest a year yes its a lot but after those 15 years ITS PAID the 30 year loan your in debt longer and paying double the interest in the long term..
New car is a bad idea if you hold it 10 years, let it go to shit, then sell it for 1k. You gotta either keep it mint, sell it on while it still has value. or be a shade tree mechanic and keep it 25+ years with impeccable maintenance record for max reliability. Then you get the best of both worlds, you are first owner so you know the vehicle has never been treated bad. and you have 15-20 years of no car payment without massive repair bills.
While we are on the topic of cars. what is your view on leasing? IMO its far worse than buying, because you do not gain ownership after years of payments. But on the flip side, you dont really have to worry about maintence issues that come with ownership. But its still not as good an option as buying new to keep till you run the wheels off it, or buying a good used car and running the wheels off it.
@niceguy243446 not necessarily. a car is an expense, it doesnt make you any money, you lose money after you buy a car
important tips people may not WANT to hear but NEED to hear. My biggest weakness is I have too big of a heart, lending to others who deep down I know might not be able to pay back. even when I didn't think I could afford to but did anyway because they were in a worse situation
AWESOME video! I couldn't agree with you more of what you have shared here. If people would only use common sense in managing their finances, many would be living a stress-free life. If we just start recognizing between what we "need" and what we "want". We all know what we want, but what we need is all that matters, really!! Great share, thank you! :)
Really Great videos!! When I was 20 I had a friend at the University whose father had 100 cows and sold milk for a living. I said that I would study cow farming in the bible and tell my friend Jenny what wisdom the Bible had for cow farmers. The more I studied Genesis 13:2 I saw that the cattle, the silver and the gold were 3 types of money: your career, your cash flow and your investments. The secrets are 1 be a specialist in your career, 2 live on a budget and 3 buy a home at the right time
he got good points why people have no money. ask this question to yourself how long can you live without a pay check ??/ and that determinate if you are rich or poor?
People in USA buy things which they can't have while people in China save 50% of their salary.What do we have? China is main creditor to USA.
Read Farid Zakaria - Post American World:
"So the average American household now has 13 credit cards, 40 percent of which have an outstanding balance. Debt has gone from $700 billion in 1974 to $14 trillion now."
I feel this advice is more for lower middle class than the truly poor. If you're really poor, you can't even save for emergencies, buy a house/car, or go out.
I have to say to you, AMEN. I hate these people that 'aint got no money to pay the rent, no money to pay the cable, aint got no money to pay for gas in the car' and yet every night, they are eating out in a resturaunt, getting the newest video game for their Xbox, bought themselves a new Iphone. They are out getting their coach bags or out at the club every week. And 6000 channels they dont watch' You said it a few times and it is the best words of the whole video.
BE RESPONSIBLE!
I have to disagree, which is ok.
I would never recommend anyone to manage their own property. Hire a property manager for 8-10% that way you have more time and less stress so that you can just concentrate on the numbers, not the property management.
If you buy an investment property for 100k with 20% down that cash flows 400/month, you can get all of your cash back that you put into it in less than five years. After you get your cash back, you will still have the property, cash-flow, andequity
roughly how much do you live on per week? what's your rent?
Abdul, I don't mean to contradict you, but I do all the things you said, except writing down a budget, and I'm still poor. I don't mind admitting. A psychiatric institution has me on a drug that pretty much makes me incapable of working. It's all bogus. There's no problem with me, and my mother, brother and father know it, but they still play along as if there is. I want to work, but I've tried and gotten fired. Severe problems sleeping and fatigue comes with this drug...and I have to use the bathroom frequently. I pray to God about this, and I know you're a Muslim, and God will change things. I'm sure. Then things will change. It's good to know what to do when things change. You give good advice.
GOOD VIDEO. GOOD POINTS. Most people don't do what you say, but my father was very conservative with money and I am too. I know keeping it is the first thing people need to do! Salaam alekum--My friend and roommate was Muslim.
+How To Find Your Passion Now No, sir.
I don't live paycheck to paycheck often.
This is good stuff. I don't even own a car, I ride a bike or take the bus. This is easier cause I live in the city but I understand if people live in the burbs; people are too concerned with flash and impressing other people. The car thing is soooo fucking spot on. Cars are worth a lot more to a person than their cost, but you can still maximize on that margin. Way I see it, unless you have children and are concerned with safety, there is no reason to buy a new car.
How is it more of a risk to have a 100% mortgage compared to an 80% mortgage? The risk comes into the monthly payments. That is determined on how much expensive their primary residence is.
People need to financially educate themselves so that they don't have to "work" for money their entire life. They need to learn how to use leverage of Other Peoples Money (OPM) and Other Peoples Time (OPT) by buying cash-flowing assets.
"Constructive dialog" begins when we as individuals begin to use our money wisely.
and i also bought a car cash after that and inherited all kinds of problems. So running around in a hooptie can be a bad investment as well. i.e. 5k on a car that lasts three years, is a worse investment than an AFFORDABLE newer car that lasts 10-15 years.
FINALLY! SOMEONE WHO HAS THE SAME BELIEF! I DON"T BELIEVE IN PAY CAR NOTES EITHER! I RATHER PAY CASH FOR WHATEVER I'M BUYING
Don't listen to this man. He speaks common sense. Just put it on the charge card. You deserve it. Everybody else is living like rockstars, why can't you? Yeeeeeeaaaaaahhh.
I like this guy. Being fiscally responsible is not conservative or liberal. It's just common sense.
Steady on, my man.
@TheDJSTALKER And they aren't just "poor people", do you think that every upper middleclass kid in the Lakeside Prep School in the class of Lakeside Prep made it into the "top 5%"
Refinancing is not dumb, that is just when you REDUCE your interest and years of mortgage payments!!! Refi will get you that property deed into your hands faster!!! What is DUMB is getting a HOME EQUITY LOAN, that just towards paying for more stuff or other bills, that's the people who get a home loan to get a new jet ski!
15 years are you out your mind. In the UK a decent house is about £180,000 that's double in $.
Its amazing the lack of financial responsibility people in America have. Though I do not agree with all your points in the video, i must say if more people followed the advice you have outlined many people across this nation would be in a better situation financially.
Very well put! Common Sense solutions to everyday situations. I am so sick & tired of hearing people "Poor Mouthing"!!!
You a very good and 100% true with everything you said. Please continue to speak and maybe start giving seminars, if you're not already. I am sure you'll do really well like Tony Robbins. thanks for posting!
this is the first video I ever watched of yours. We need more channels like yours on RUclips!! Great advice brotha!!
good for you. one of my car's has 284,000. however if I get enough money I will buy a newer car or lease a new one. for hire car service a new car is an investment. it will last longer , not have as many problems, make me late for work....etc. however I agree for most poor people learn to work on your own stuff & buy something used at the auto auction for cash. buy here pay here do the same and sell the car for 5 times more than they paid , after doing nothing to the car but a battery.