Does Wealth Make You Meaner?
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- Опубликовано: 2 июл 2019
- Books and movies love to show wealthy people as cruel, unfeeling, and miserly. Turns out science has an explanation for why greater amounts of wealth can turn us into Scrooges. Should you just avoid growing your wealth… or is there a better way to protect yourself from the corrupting influence of money?
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
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SOURCES:
matrix.berkeley.edu/research/a...
nymag.com/news/features/money-...
www.weforum.org/agenda/2016/1...
www.reed.edu/reed_magazine/ma...
www.theatlantic.com/magazine/...
blog.ted.com/6-studies-of-mon...
www.philanthropy.com/article/...
www.forbes.com/sites/erikkain...
www.huffingtonpost.com/david-...
I have always heard money doesn't change you, it enhances what you already are.
Yeah, and most people don't get money by being generous
"Money makes you more of what you already are" - Dave Ramsey hammers this point home constantly.
@@Devinfrbs alcohol does that too.
Very very true. So when you see family members attacking you over money after someones death, which happens a lot, their true selves come out
I don't think so. I've watched people suddenly fall into wealth and it changes them over night. There are studies that show this as well. One shows that if you give someone 100 dollars they are more likely to lie and are less likely to share. Another shows that when people are given power (a management position) they are more likely to be hypocritical, lie, and are less likely to blame themselves. Wealth is power, quite literally. I will try to find them so I may cite them.
HOW DARE YOU not to mention Mr. Krabs !?!?!!!
Mr Crabs is an example of "the love of money is the root of all evil"
Haihaihaihaiahaiii mr krabs laugh
In the short time I drove for uber, i noticed that riders that lived in the "less fortunate" areas were more likely to leave a tip. The "wealthier" riders that I would pick up at the airport and drop off at a huge house, NEVER left a tip. Pretty interesting video.
Interesting. Although if there is a difference in base fare this makes the observation less conclusive. I once had an uber driver tell me he used to live on my street but then sold and moved to a nicer neighborhood. I still left a tip but figured I should not spend any more money on rides.
They were likely paying with a corporate charge card.
I've noticed the same thing waiting tables and panhandling. Has nothing to do with corporate charge cards.
Yes same thing in Finland driving a taxi about 10 years ago although tipping is not required in Finland I noticed that blue collar tipped way more often then white collar
Miguel Cano for me it was opposite. The wealthy ppl in nyc tipped greatly
Please consider making a video explaining compound interest and the best retirement planning strategies. I know that you have already made a video regarding early retirement (great video by the way), but, could you go into more detail regarding the subject? Asking for a friend. (It's me... I'm the "friend".)
Compound interest is basically interest made on the previously made interest. The formula is simple X*1.05*1.05*1.05... where .05 represents 5% interest and is for three years in this case. Extend this to 30 years and it adds up massively. In this case 430% Also in my example there are no recurrent contributions to make it simple, but in real life there will be.
Here is a good calculator: www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator
Hey Mansa Musa. We explored retirement and compound interest in more detail in this episode. Check it out! ruclips.net/video/KA66Wcp1QEc/видео.html
Weren't you the person with the highest net worth in history?
Mansa Munsa you're the richest person of all time, why do you need to worry about that?
Hm... I wonder how the level of empathy and generosity of a person "born rich" differs from a person who grew up poor, but earned a great amount of wealth in their lifetime.
There's a huge difference. Excluding major life changing events, the former is usually stuck with a fixed amount of empathy. They don't know any different. The latter know both sides of life, hence, have something to compare their behaviour to
Ah he’s grew up oor
There was a better explanation in some book i once read, i believe it was "The Selfish Gene". It talked about animals who have a harder time surviving being instinctively more charitable to others at good times because they are more likely to need their help themselves at some point in the future. I think similar instincts have probably carried over to humans.
I would like to read the book as well. Do you recall the name of the author? That would be kind of you. 😊
Jimin you got no jams Charles Darwin
@@jiminyougotnojams6865 only book I know by that name is by evolution scientist Richard Dawkins
But 2 percent of 100 is more then 5 percent of 10 no one sees this
@@jiminyougotnojams6865 Richard Dawkins - The Selfish Gene
My first job after college was working in the office of a non-profit organization. I saw first-hand how a large percentage of contributions went to things like the CEO and CFO's pay raises rather than to what the charity was for. It was considered "administrative costs." I think about that whenever I give to a charity organization, but I prefer to be generous to people I know than people I don't.
exactly ,this behaviour causes people to loose trust in such organizations.
In the early stage of life, you learn from elders. Later you learn from society, in good days you help others but on bad days if nobody helps you, next time you will not help in good days also.
what many people don't recognize, is that earning high incomes comes with a lot of sacrifices. The people with money, naturally will not just give up what they have, because many of them do work very hard for it. I know millionaires, who started out living out of their car, and having to borrow money to start businesses. It takes somewhere between 10 - 15 years or more to build yourself up from poverty level. True, corporations do game the system, with lobbyists, and politicians in their pockets, but for lower to middle, to mid upper class, the amount of wealth you have really depends on how badly do you want the money, and what you are willing to do for it, Legally.
Yes, I also thought about it, self-made rich people can't be judged, they earned it. But I think the video should have mentioned inherited rich or something similar.
My Family has a legacy of Wealth, We are "Upper Class" but we have had some serious ups and downs. But our mentality hasn't changed, it's not the first time that people in our family are experiencing financial success, so we learn from our ancestors and act accordingly. Both my Grandfathers were millionaires, and then their children hit rock bottom and became millionaires again.
They do give alot of charity compared to the people who are newly Experiencing Wealth.
@@ashishkalam9337 good for you.
I still would keep helping.
When I tended bar back in the day, the construction workers were always much better tippers than the IBM executives who showed up after work on Fridays for happy hours. I know that is just anecdotal, but it was consistent.
Hmm probably because the didn't have money on hand i guess , im not wealthy , i don't go to clubs becuase i don't have to psy , soo im guessing
my guess is construction workers understand hardwork that pays craps?
Another thing to consider, construction work is seasonal and many don't budget their money. They overspend and therefore more tips. The IBM guys income in stable throughout the year and the may know how to budget more.
Nope, those construction workers watched me bust my ass and they tipped accordingly. The IBMers were consistently far stingier.
I had the same experience delivering pizza. Welfare neighborhood > yuppie neighborhood.
We have a "giving" section in our budget. It forces us to ask, "are we giving enough?" each time we do our budget. My wife is more generous than I am, so I try to defer to her :)
Yes, so do we Aaron. It's good to have it as a structured thing (in our experience) instead of a "when I feel like I have enough" thing. -- P
Dave, is that you?
Um
I'm from the Caribbean, Trinidad and Tobago to be exact and I simply love your channel! It has taught me a lot despite certain rules being not applicable to where I live. Keep up the great work!
Thanks so much Keisha!
🇹🇹❤
I use to do a direct deposit through work. I set it up so a certain percentage of my paychecks would go to UNICEF.
After I lost my job, and had several hard years i kind of stopped giving to charity. Barely being able to feed yourself will tighten your belt a bit.
Lately I've gone more along the lines of "donating skills and time" lots of young developers want help with their games, solving problems or play testing. And I've been doing that.
I have meant to get back to donating on a regular basis, but I'll wait till more of my student loans are paid off before I do.
I like to calculate 10%, then give that away. Like you both said, helps to keep me master of the money instead of the other way around!
Love that. We do the same.
@@TwoCentsPBS I don't get it?
How is that a possibility for most people after tax and rent?
I used to be a cab driver, poor people tipped generously. Even if they were on welfare. Rich people tipped rarely and when they did it was like $2 and they made it seem like they were doing me a favor. Poorer people gave tips like they know the struggle is real. For the rich, it was like asking a teenager for the xbox controller. They would share it but they really didn't want to. Also as soon as it's their turn to play they rip the controller out of your hands again.
This video speaks the truth. Bill Gates, Warren Buffet and George Lucas spear headed that rich folk donation thing I think. Which is a start. Then again, we are taxed which in a way is like forced donations to the government for programs like welfare, hospitals and social assistance (in Canada). So in a way we are all giving money to people who need it already (depending how the gov budgets it)
Rich people are far more likely to complain about how much hard working poor people make as well. Some how they have convinced themselves that they deserve every dollar they have and poor people (who work far harder) are just mooching.
Interesting! Thank you so much for sharing your personal experience with this!!
Why y’all do Aunt Sharron like that?! 😂
She had it coming A.C.
I feel like the arguments about percentage of your money given to charity being lesser when you are wealthier talks more about how we see quantity than being cheap. If you talk about absolute amounts, it paints another picture: People give about the same amount of their money to charity even if they are richer.
A man who has 3000 Dollars a month can't give away 80 percent to charity without become poor himself.
A man who has 300 000 Dollars a month could give away 80 percent of his income without even becoming unwealthy.
I agree. People forget that the rich pay a lot more taxes and spend more in general. When going to a local restaurant and spending more money on bottles of wine contributes to local businesses although you leave no tip.
Not rich myself but this seems a good reason why they give less money away.
What if the rich person gives 10 dollar to someone collecting for a good cause with a collect can and a poor person 2 dollars. The percentual spending relative to income is less important then.
@@Edwinschuur lmao only an arrogant person would think that their selfish spendings are for the "good of the economy". If a rich person's money was thought of as money of 10 households or something, they would still in total spend the same share buying from restaurants and "helping the economy"
Not to mention that the income brackets outlined have very different tax rates so the overall percentage is skewed heavily the other way.
@@alexanders.170 You missed the point: The point was the absolute dollar amount, not percentage of assets.
I don't make much money (as in, I'm in the bottom income bracket in my country) and I give some money away because I really believe that money is cyclical. Sometimes, it needs to leave my hands. And I rest well knowing that it will come back to me in another way.
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I have recurring monthly donations for two non-profits. I set aside a small amount that doesn't make me feel anxious, but makes me feel like I'm contributing. I also have small monthly donations to two of my favorite creators on Patreon. I budget for this money and it gets automatically deducted from my account so I never see it and I never miss it.
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Then when the opportunity presents itself, if I meet someone on the street who needs money or if I come across a Go Fund Me in my community, I contribute to those on a one-time basis.
Love this so much. We opperate similarly! We've got some organizations that we do on a monthly basis and I love having extra to throw at things that come across my path.
The less money you have, the more you’re going to witness the plight of of people without. From a young age that will program a response in you to want to help. When you’re rich all your life and rarely see people who have to live without. You’re not gonna have that same emotional response. It’d be just like seeing a fly in the house. A nuisance.
Having been fortunate enough to have worked in both Blue collar and White collar jobs, I felt most comfortable amongst my Blue collar associates than I ever did with my White Collar associates. I do not believe this is atypical.
There are many generous, nice wealthy people...like the guy who paid off all the student loans at graduation😀👍
Chris Invests - Personal Finance Videos But we remember that story and it got so much press because it was so unusual. If more people were doing similar act s of kindness I think we would hear about them.
But thats rare. There are millions of wealthy people in the owrld. of course a few are gonna be generous
And then there are guys like Tom Perkins who equated higher taxes on the rich to the persecution of a certain religious group by an infamous right wing political party.
I was a nice thing to do.... but he got it all back in a tax write off’s, millions of dollars in free Publicity, and God only knows how many business deals, because everyone is like we want to work with you because you did this thing, it really was to get future business deals, more like a money marketing scheme he will see Big future paybacks for the endeavor, he will always be able to say he was that guy.
Mrbeast
Maybe instead of looking it as more money equals less generosity, we can also look it like the more generous a person is, the more likely he will give away his wealth and thus is left with less of it.
When you only make $10-$15 an hour, you are never ever going to have "wealth" like Bill Gates. It's not that we give away our "wealth" - we don't have wealth and never would even if we kept it all. It's that we know what being really poor is like. We know we needed help sometimes, and are willing to pass that help along out of kindness.
Yeah, bro, sure, but the 5% difference(or 1/20 of yearly income) here isn't making the difference between rich and poor. Maybe if it's like 20% more saving and investing, then we're talking about a significant difference.
I live in a neighborhood with an interesting mix of really low income families next to very high income families and I see the opposite in my community. The local high school even has an extra event for the distribution of all the many local scholarships awarded. I would love to be able to contribute back like that too someday. I think numbers should be less percentages and more about the actual value given. As money grows so do goals. Money is simply the tangible energy of value we trade or give to each other. Wealthy people donate a ton to what they believe in and value... then they also put a lot into expenses that go toward creating more value for the world.
What's your superpower again?
Batman: I'm rich
2:24 I'm pretty sure that 187 out of 150,000 is closer to 0.125% which is off more than factor of x10
I don't give much to charity but I pay a lot of taxes. My government gives a lot to charity thought.
As long as the money cycles, I think people will be all right.
Did anyone test the idea that maybe mean people tend to accumulate more wealth? I mean, meanness is the cause and wealth is the effect. Not the other way around, at least in most cases. Is there any study on it?
Hmmm... interesting question! I'm not sure, but I'd love to read/see something on it if you find anything.
Or neither is the cause, and both are the effects of some third factor causing both.
When you start saying No to things and people everyone sees you as mean.
@@TwoCentsPBS I looked up but as it seems, nobody asked this question. Let alone trying to find an answer. Then again, since I have no qualification in finance or psychology (academic or otherwise), my search window may be constrained. I would love to hear from you about it.
stupid commie bong
I'm giving away 1% of my total wealth every year - meaning the more i save the more i give... I think it's fair
I feel that even in the examples the rich still gave more over all just not as much as a ratio to income their still giving more money to charity.
@@matthew7693 If you think about it, that means though that a less amount of money will be spent from a given amount of income for charity if it's split between less people.
Which shouldn't be the case and that is why the kind of Jeff Besos donations are outrages lies.
You have more, you should give more in percentage not less.
@@obbavyakti5805 Bull shit, it doesn't matter how much you have or what you make you aren't obligated to give a cent of your money. You sound like a homeless guy thats pissed off a rich guy gave him a dollar and not 10 dollars.
@@amazinglats6020 You are MORALLY obligated. And by the way, you are obligated by law as well, in the form of incomex tax brackets. You can go and fuck yourself. Everything I wrote is true, and how the fuck could I be a homeless guy? Fucking idiot.
I think it's more on the hardships and sacrifices that a wealthy person has to go through in order to achieve such wealth. Most wealthy simply put importance on proper allocation.
it also goes the other way. I served a mission in socal. Two areas I was in were right next to each other.
The more rich members I met were the most kind, charitable, and real people I ever met.
The less rich were rude, less generous, and fake.
it honestly depends on your morals. Also most if not all gave 10% of their income to tithing alone. So many earned such large amounts in the more rich area that auditors had to call every time they gave to ensure it was in fact what they earned, what job they had to earn that much, and so on.
what this video has taught me is that you can make anything appear to what you want when you find studies that support your reasoning, and neglect to mention others that don't. In other words be careful what others say to you, it may not be the whole picture. The truth is usually somewhere in between.
I think maybe you just got along with the rich people more. I was one of those homeless people in SoCal. Those wealthy members don't even need to be there. I see literal rich people at the food kitchens all the time, just trying to hoard even more money. They are generally fake as H, they mostly are greedy, they usually have disdain for the actual poor people at the kitchen. Of course there are outliers and you're more likely to see them in Cali because Cali is more excepting of outliers in general. I have been homeless in 30+ US states.
@@usegnu1485 I was also in the most ghetto areas too, like say norwalk and hawaiian gardens for example, those members also were the most kind, giving, and real people I met... they just had a very dysfunctional ward. I hated being in the more rich areas because they were rude, but this one stake changed my mind. They were honestly kind and just as giving, grateful, and good as the more poor areas. Its the faux rich areas that were the worst and I detested. There was a former homeless gentleman in that faux rich ward that agreed with me too, neither of us felt welcome. They were too busy trying to look rich that they were broke and lying to themselves and others. I'm sorry you had those experiences, its funny how you can have two extremes so close to one another.
Two cents has brought out a very honest conversation within the community. I really enjoy engaging with others who comment on these videos. Great job, guys.
I’m having trouble understanding why someone even keeps track of these things. If you are fortunate to have a skill or ability that is considered valuable that wonderful but at no time are you obligated to give anything away. So since someone does keep track of these things it seems that the so called 1% actually donates a lot yet they are the first to be blamed for the disparities of others. I’m not wealthy at all I’m a farmer and I actually took out loan to pay my taxes this year.
Nobody said you're obligated. The point is they won't bury you with your money if you got billions of dollars to your name when you're dying.
Concentration of wealth has always been a problem and cause of many violent revolutions if you look back in the history.
A remarkably well made video!
Not with the traditional and populist view towards wealth but something science-based, with a clear message and explicit and practical recommendations on how to keep your humanity. Although it only talks to the wealthy among us, mostly.
On the other hand, the human history shows probably won't work. But noble attempt nonetheless.
Now go make a video for the poor, but perhaps as you said they are already more relatively generous and don't need it!
Thanks Constantine!
I'd say the way people treat you when you have something they want makes you angry, not the wealth itself
It's also kinda hard to get/stay rich when you're generous
That Monopoly study sounds like the winners were being sarcastic.
This Monopoly study sounds so flawed. People understand Monopoly isn't real. We boast whenever we win in a game. The winner is eating more pretzels because they are in a happier mood and don't have to concentrate on the game.
@@chris4325 I don't think people feel entitled when they win a game of Monopoly or UNO or Snakes&Ladders. Your point maybe true but the Monopoly study doesn't provide valid support for that.
@@chris4325 monopoly is about luck and how the dice roll. skill what?
I remember that study. A documentary actually referred to the same exact Monopoly experiment. The players were filmed, and the responses were reflective of what the hosts talked about.
@@homeysunday4964 ruclips.net/video/wK7xcWFgHoA/видео.html& skill at playing monopoly, you don't know?
Now I understand why my landlord and wealthy landlords in general are so mean and greedy.
Also, you guys reminded me to give more money for people in need and fix a monthly % for charity.
Thank you so much guys, I'm a new subscriber and I'm truly enjoying your amazing content!
The wealthiest people I've met tend to be the happiest actually. They're very positive and always keep a cool optimistic approach to everything
But at the same time, they don't allow individuals to take advantage of them so they are accertive which is where I believe people think they're "mean"
This might be that these are specifically ones that socialize with others as explained in the video.
But yeah, you're right - being mean has a very specific definition here, namely how much money people give to charity.
those are the wealthy people you've met. Maybe its that the nicer ones are the ones that go out and mix with people from different social classes.
Your personal experience is called "anecdotal" evidence. It doesn't disprove the wide body of evidence linking wealth and selfishness.
@@megustAslagt they showing percentages and not cash. If you calculate it...the wealthy give more cash
C B I agree, according to a statistic 80% of millionaires today are self made. So one might say that Jason's "anecdotal" evidence is wrong because of facts and statistics
Wow a lot of comments disagree with the video content, like they took it personally or something.
Anywho, I'm working class (about 21k per year) so I'm super careful about who I donate to since a lot of so-called nonprofits and charities are scams and/or less than 10% of their total donations go to the actual cause. I basically picked three causes that were tge most important to me and donated to local orgs and chapters. I have it set up to pay automatically each month. It's not much, but Congress said money is free speech so it's me saying "I support this cause". Does pateron count? I also support several artists and educational patreon accounts
I'm finding it disturbing how many people find these studies hard to believe. It's just human nature, you emphasise more with your own.
For me, I don't necessarily find the studies hard to believe, rather it's the conclusions that can be difficult to swallow. For example: was there any control or method to identify if poor people were more generous, rather than generous people being more poor? All we know from this video is rich people donate proportionally less than poor people. Either could potentially make sense, yet assertions are made about a causal relationship which has not been established given the information we were presented. The conclusions appear to be formed from a bias of the researchers or presenters. This happens a lot with research which is why it's important to think about if the conclusions make sense given the information and methods used, rather than accepting the conclusion at face value.
@@colelane987 On a side note, perhaps the reason wealthy people don't donate to charities is because they already contribute via higher taxation. That in turn feeds into programs that help those in poverty. Just a thought.
@@modernalchemist2690 of course, they might believe they help more already. I'd like to see how the experiment goes with a flat tax system.
@@modernalchemist2690 That's true until you go up to the upper middle class in the US. Once you get to the wealthiest, they're paying a lower effective tax rate on average than the upper middle class. It's all clear. We're taxed heavier on EARNED income, but less on PASSIVE income. How's that for meritocracy and hard work and all that bullshit?
This is a really interesting topic. I always think about the quote "Absolute Power corrupts absolutely" and this definitely applies to money and wealth. I loved hearing your view and opinion on this.
I remember first hearing that quote in high school, Ruby, and it's always stuck in my head. Money and power tend to be highly interrelated, so there's definitely some overlap (more money usually means more power). And as we discussed in the video, wealth often leads to more time spent around other wealthy people, which might decrease concern for the less fortunate. -- P
Since high school one of my old class mates started a detailing buisness and now makes pretty good money compared to everyone else who has graduated and he began to get invited to a lot of birthday partys and weddings from ppl that he never really talked to just because they expected a big expensive gift from him and he eventually stopped going. Also some ppl that joined non-profit organizations would reach out to him and pretty much demand money because they knew that he had it. Ppl just expect handouts if they know someone has money. Since all this happened the guy only hangout with his 2-3 friends that have been with him since middle School and everyone else sees him as snobby but he's just tired of ppl asking for money. He has a plan in life and is saving him money for something big and a good future but ppl just think he is selfish. I think people that became rich from hard work are either very generous because they know what it feels like to not have much or are tired of being asked for handouts and already have a plan for their money. No one is obligated to donate money it's every individuals choice but if rich ppl don't donate maybe it's because they know there are better things to do with their money like investing it.
How exactly is investing money better
than donating to charity?
This! People are fucking leeches and they act like their entitled to other ppls bank accounts. News Flash: You're Fucking Not!! Fuck off with the begging and do you!
Charity is not money given out.
It's help for those who are less fortunate.
If it isn't, it's not a true charity.
Mr beast watches video
“is this Opposite Day ?”
well mrbeast wasnt wealth to start, on top of it he worked for what he has currently, and if you ask him, he wouldnt even consider himself rich. Just be glad he can do what he wanted to do for years. Making youtube videos for living and hanging out with his best friends, and touching people's lives.
The key to sticking to your charitable goals is to give it at the beginning. If your goal is to give X%, then give that percent off every paycheck as soon as your are paid. You won't miss what you barely had.
Totally agree with this approach. We give and safe FIRST then spend the rest without worry or guilt! : )
10%, auto-pay. It's treated just like any other bill in our budget. That makes it an easier pill to swallow each month
I found the Mormon!
@@Sanorace hah no not a Mormon
Hahaha. We've done the same for years. And no, we're not mormon either. ; )
Silly question, but could some of those studies and statistics be skewed?
Haha, sure -- any study or statistic may be skewed. But the trend of the research tends to lean toward one conclusion. If you have evidence (or studies) to the contrary, please share them!
@@TwoCentsPBS If you are successfully building wealth, then you are choosing to be different from the majority, which means to me that we can choose to not be like the studies and statistics in the video, but remain and grow in kindness and generosity. I don't have any statistics of my own, but thinking that money is going to turn us into mean people could be a very disempowering belief. I could wind up self-sabotaging my wealth building efforts with software like that running in the back of my brain. I like the idea of setting a percentage of money for charity. That would take the emotion out of it, although I wouldn't want to do that fully. Anyway, thank you for another great video.
@@robmckee5295 I think, you'll have to come to terms that humans aren't exactly rational creatures if you watched other videos from this channel. Truth hurts, but is it better to tell comfortable lies?
I just cant get enough of you two. You give away so much insight while preserving a positive outlook. Thank you so much :)
I am solidly middle class for my part of the country. I give to charity and volunteer when I can. I hope to one day be wealthier. All this being said, I'm curious about the efficacy of charity on the whole, the reason being I often ask myself "am I truly helping?". The reason I ask is because generosity FEELS good, but does it DO good? Have you folks done a video about that as of yet? If so I'd very much like to see it. Keep up the good work.
Whoa! So you’re saying the people who don’t give away their money have more of it? Life changing.
To answer your question,
I usually just donate whatever I grabbed from my pocket, well, that if it's not super big, like 10 bucks or sth. This laziness actually made me able to think less and just donate.
i've actually given money to Panhandlers on the streets before. but when I hear more stories about some of these people doing it for a living, and getting money tax free, I stopped. Plus, some charity organizations out there are Semi - Scams, meaning the people running them, may take a high salary for doing their so called Work. Do not give money to anybody, unless you know their full story, that includes friends, family or relatives.
I tithe, pay 10%, my income to my church since I started working; however, I never thought about "actively seeking out situations that connects me with people different than me" before. Thank you for the suggestion.
1:13 more you earn more you give:
50k gives 7,6% = 3800
100k gives 4,2% = 4200
200k gives 2,8% = 5600
I love your videos but the audio is too low
They didn't take into consideration that 1 percent of a 200k income person is worth more than 7 percent of a 50k income person. People donate by value of money not percent of their income.
So someone who can barely afford rent should donate the same amount as some one who has three houses and a yacht?
That goes both ways, at 200k, you keep more even with donating the same percentage, too.
@@usegnu1485 no people donate what they can afford
@@barvdw no not really it's all personal preference
@@ParthPatel-lc7eq so you're saying rich people need more money to be happy? Because there is scientific evidence that the richer you get, the more you try to keep, in spite of the larger absolute sums given to charity, and the more often one expects some kind of return from their do-goodery. Let's be frank, you should not feel giving $50 when you make $2,000 or more while you will feel the pinch when you're on $1,000 a month, with $500 in rent and $300 in other fixed expenses. And yet I wouldn't be surprised if the person making $2,000 would snub the idea of just giving away $50 more easily and more often.
I think the studies not only could be interpreted in different ways than what they were presented as (by the people who did the study), but they also dont take many things into account, such as personality traits, how people became wealthy, etc. Someone born into a wealthy family would have a different attidude toward money and generosity as opposed to someone who came out of poverty by working extremely hard. For example, the study where people were given cash and were asked how much they'd be willing to give away and poor people were willing to give away more of it, tells me something entirely different than what the interpretation of the study suggested. Giving away more money that you didn't earn doesn't make you more virtuous or generous, it makes you bad with money. Statistically, those people are more likely to play the lottery and make other bad financial decisions, which is what keeps them poor. On the other hand, wealthy people didn't become wealthy by squandering, so their inherent reaction to keep more of it makes perfect sense why they'd want to do that. That's just one example. I won't go into other studies because nobody wants to read that much on RUclips.
A very large percentage of households don't have $1,000 saved for an emergency. Charity should always begin at home. Wealth is Not built by giving it away, in the accumulation phase, contrary to social narratives. And wealthy people don't hang out with broke people because they simply don't share the same values. From broke to wealthy, these are My 2 cents.
I do love your Videos... Thanks
As hard as it is, I commit to giving 10% of my post-tax income to charity. Hoping to work towards 10% pre-tax!
Rich or poor, I recommend that you do not donate to charity. Often you are helping a CEO buy another mansion with your donation.
I remember the church collection plates coming around when I was a poor college student... I didn't put money in. I wasn't very liquid as I was on a full ride merit scholarship and struggled to make enough to pay my rent. I prayed and told myself I would give 12% once I got my first adult job.
I'm glad to say, almost 10 years later, I kept that promise and give to multiple organizations. On top of that, my husband and I also try our best to meet the difference between our younger siblings', nieces', and nephews' financial state and their peers as both of us are the children of first generation refugees and our families don't have the generational wealth or capital of others. This doesn't have a budgetted percentage, but we're trying to build a savings fund specially for this purpose.
All of it takes a good chunk of our finances but I think it's uplifted our community in small ways and I'm happier for it.
I think the impression that a rich person is meaner is the typical action of a normal human being when he or she don't have to impress anyone, they can afford to not tolerate anyone's bs.
Make sure you do research on charities that you donate to! Some may take a huge chunk of it or all of it.
Charity Navigator is a good site to check in the US. But yeah, most major charities are already known to be good or bad with a quick Google search.
*cough* THE KOCH BROTHERS *cough*
Funny thing about percentages.
The household at 50k gives the least at 3800 with 7.6%.
The household at 70K gives 5320 with 7.6%
The household at 100K gives 4200 at 4.2%
And finally, the household at 200K fixe gives 5600 with 2.8%.
Although the percentage is lower at higher income, you would still give almost as much, or more.
And besides, more money usually means higher spending, because you can afford mortgages, cars and the likes.
I donate to charity every so often, but it annoys me when they get after me whenever they can, then they tell their friends, and they beg as well, and then they ask and ask and ask and call and email and text and everything which turns me off from wanting to give anything. Usually, I give material donations, I have done more of those vs. monetary donations.
Well said! I like how you included solutions in the end😌
Thanks Michelle!
Could it be the other way around? i.e. people who give less tend to get wealthier?
That's what I always thought
Well, it depends, I guess.
Some people give less, but use the money they could've donated on something that's not gonna improve their economy, so they doesn't go anywhere.
Then again, 2% isn't really that big, we probably spend on unnecessary things worth more than that.
they get a higher number, they don't become wealthier
I never binge watch any educational channel unless you guys showed up 😀 big fan here
I just like hanging out with people who are more financially aware or considerate. There's lots of ungrateful "taker" types at all income levels.
Normally, I love your videos, but I feel like this one is really perpetuating a false stereotype. You should really read the book Everyday Millionaires, the largest comprehensive study of millionaires habits. The majority of those who build wealth have normal jobs, do it over time, and live humble lifestyles. Many of them give quite a bit as well. The data you mentioned in this video just looks at small slices of people or those who have enormous wealth. I hope you take this comment seriously, I hate to see this channel giving out bad advise, you've been so great up to this point.
How would a book be the largest comprehensive study? That's a semantic error
Your videos are awesome guys. Thank you so much for all your work in making all this information available for us. Me and my wife constantly watch your clips. Huge regards from Bucharest :D
Thank you so much! Love to Bucharest!
yeah this checks out with my uncle whos a banker. he lives in a middle class neighborhood even tho he makes a lot of money. He does have a second house away from everyone but its in the woods and he built the entire place on his own just because he can. good guy
Guys , what is your view on giving tips in restaurants? A frugal mind like mine (and probably yours too) definitely fights a mental battle everytime we're asked for the check.
Thanks for the great vids!
Rich people earned their money and they font owe favors to anyone.
Love from India
Makes you more responsible which incline makes you less fun sometimes as you have a goal and don't cave to peer pressure.
Instead of quoting the percentages , they could have just given the actual figures , quoting Percentages makes it seem like one person is giving significantly more, when in fact the amounts are very similar.
*So on the other hand, Being more mean will make you more rich* ??!!
*disagreeable Not necessarily mean, but willing put your interests ahead of others in negotiations.
AniRuddh SiNH Jadav You don’t make more money by giving more away. Why do you think Amazon workers don’t have a high salary? It’s the harsh reality.
Absolutely. Now go fuck yourself
@@kshitiz06 you must have earned like a million for that mean comment 😬
AniRuddh SiNH Jadav nope it didn’t. I think I am gonna try and steal food from homeless today and see if that works.
People usually give money to charity the amount it takes to get tax benefits... that is the same no for most of the tax brackets.
My church denomination fasts once per month. We donate at least the amount we would have spent on the meals. 100% of this money is used to help those in need both in the congregation and without.
This video is based on the view that you are required to give people your money to "be nice". While giving to charity is an amazing thing to do,its called charity and not obligation for a reason. I'm not rich but if I ever get wealthy from me or my family working our butts off I shouldn't be forced to give some of it away. You can still treat others well and be a good person without a financial obligation
good video but the more money you have makes you less generous is not entirely true. using the percentages of in your vid, we can calculate how much each household really donate:
50000-70000/yr: gives around 3800-5320 to charity
100000/yr: gives around 4200 to charity
+200000/yr: gives around +5600 to charity
It would be better to say this:
As your income level rises, the amount u give to charity stays roughly the same.
we all probably have a fixed amount of cash our heads that we give away every year and we don't tend to think about it that much as we rise in income.
so it depends on the person at the end of the day.
^This^
You beat me to it
@@srivatsajoshi4028 to me too
And there's also that feeling that there's no need to give to charity if the government taxes the living shit out of you for social programs. Americans used to give to charity much more before the great society and they still give much more that socialistic countries in europe.
@@turand1201 I believe they said income in the video, but let's play with your idea for a moment. So after the 48% of annual taxes on top of all the normal taxes, which are increased in proportion to their income, the rich are still donating a greater amount in dollars, even if slightly, then those that are not only deeply in-debt, which gets written off, but feeding off both the charities and the government whilst they get a tax return instead of paying 48% of their income to taxes.
And no, I'm not some rich guy, I'm job hunting while using foodstamps. But I do something called research. It's quite fun!
Actually I think you got the cause and effect opposite, they are rich, because they understand the value of the money better than the poor and that's why they are rich in the first place, these non logical spending habits do not summarized in charity spending, it also similarly happen when poor people spend money on cars or restaurant or goods, and that's the exact reason why they are poor.
I love how the idea that mean people can be better equipped to make money in ways kinder people would find unappealing is not even considered in this video, not even to be debunked
This is one of the cornerstones of wealth building. If you do not donate you will never appreciate what you have.
I am a Muslim and we have to give away 2.5% of our total wealth every year......... :).that is what i am planning on doing.
saif akib 2,5% minimum
@@fgj8294 ow yeah my bad
I wonder if the people who gave less to these charities pay more in taxes 🤔 just a thought 💭
The more money you make, the more you are taxed. This tax money goes to things like Medicare, foodstamps, and other things implemented to help the poor class. Just a few drops of communism to dilute our capitalism enough to be slightly more humane.
Taxes aren't "giving". Paying taxes isn't and indicator of niceness, especially considering how hard people work to pay as few taxes as possible. Now, this is my personal perception, but it seems to me that the rich are incredibly guarded about their wealth when it comes to taxes.
It might still be true that the rich have a greater net benefit effect thanks to taxes. But that doesn't affect the thesis of this video, which is that wealth makes you mean.
@@spennyb89 Who cares about being nice. You owe no one a favor.
@@EarthsGeomancer
Haha, you wealthy?
@@spennyb89 o contraire, it does. Imagine you work hard for your money, and instead of the government giving you a handout, you have to pay half to support a mixture of people that can't work, and people that choose not to work. Then find charities that aren't corrupt to donate to, because you're painfully aware how the organisations spend their money. And despite this, still donate more cash than lower classes and make a bigger impact. To become rich, it takes an extreme amount of calculation and planning. Unless you were given all your money, knowledge of where the taxes are going is automatic, especially when you used to be on the other end.
Now this is one of the issues with the poor class, my class: lack of empathy. They try to blame the rich for all of their issues instead of taking ownership. They expect the rich, whom half their income is already going to the poor, to take pity and be the knight in shining armor. When they don't, they are treated like a great villain. Here's an idea, stop being a damsel in distress. Research, study, make a plan, and set smart goals to save yourself just like most of the rich have instead of making excuses on why they have what you want.
More and more people are doing this, and "safe jobs" are becoming obsolete at the edge of the A.I. revolution. The time is now. Your mindset is the first thing that needs to change.
Saw the Ted talk a year ago. The scientist with the monopoly game was so much fun to see. I recommend that video also! I started by donating 1 % and I increase my donations yearly, by finding a new charity to donate a specific amount each month, including the ones I'm already supporting. It increases slowly, so I don't notice it in my budget.
The 200k household giving 2.8% to charity is still giving more in total than the 50k household giving 7.6% or the 100k one giving 4.2%
1:22 I mean, when you make more money, a % of your income will be more money. Therefore, you're not going to give a bigger % away, because it will be way more money. I don't think that means you're less into charity.
The set % thing is the truth. I gave 10% of my income to charity from the day I started working when I was 16, to now at 39. Sometimes it's more but it's never less.
olandir respect 👍
I feel like the percentage people give to charity is somewhat unfair to say rich people are stingy. 7% of 50k is $3500 but just 2.5% of 200k is $5000. So the rich are actually giving more money.
It's easier for someone with 500$ to give away 5 than it is for someone with 5$ to give away 5$.
Both situations they gave away enough for a Starbucks coffee. However one of them can buy a night in a 5 star hotel and the other can't buy himself a coffee. If you wanted to pretend the numbers themselves matter then the % is more important. A generous person gives something up for other people. No one making 200k is giving up anything donating 2%. In most cases they are doing it to reduce their own tax burden not to help people.
When it comes to empathy, some of the best people I've known were rich. I don't know why. And some of the worst selfish people with questionable morals were very poor. I also don't know why.
Also, I tried my very best to donate when possible. I never donate money, I prefer to give clothes, toys, books, furniture (yes, they were good quality and in almost perfect shape) (even donated blood because I am 0 type). I always give food and like sharing it with no matter who.
People don't want my donations. Some even screamed at me "I don't want your stupid books, I want money. Give me money!!!". It made me sad and angry and disappointed.
Each time I offer a poor person to work for money + food + I pay for your transportation --> they refuse and go away.
Sorry for my English. It is not my native language
Maybe poor people stay poor by giving it away and not caring much how they handle their finances. Poor people who manage their finances well, including less donation to charity might get rich.
This might also be a reason. Essentially, you can't claim causation only correlation at best
I tell people "The poor are poor because they suck with money"
LOL. Sure, it has nothing to do with the fact that they are quite literally Stuck in dead end jobs and forced to pay rent. You either were payed .1 cent to say that or you've actually been convinced, either way, you are a tool.
*Elon Musk is a proof*
That you can become a meme instead
I work in the table games department at my Casino, most of the tips earned from the blackjack tables came from the low limit $5 tables where as our high limit tables earned less tokes overall.
That's so interesting!! Thank you for sharing that!
could be a 'never had hardship so struggle with emapathy thing' or could be a had so many life problems it's made a wee bit sociopathic. If you've had hardship you don't want others to have that burden too whereas my friends who are middleclass through and through don't really understand basics such as 'some people can't afford to hang out at expensive restaurants'. I've come from both worlds so its interesting to witness both in play. Addiction to money can also play a part, traumatised people who can't fill a void see their money as a way to leverage that void
I believe its not that money makes you meaner but mean people make more money.
Life can be tough on everybody. it is like a free for all. Usually, when people go thru certain hardships, and find that no one is willing to help you, you become mean. And you may channel that meanness into lifting yourself up by the bootstraps so to speak.
As someone who works with ultra high net worth families every day, I’d say no. In terms of charity, I have some clients who are VERY charitable (and not motivated by tax benefits or side perks) and some who are much less charitable.
Good for you, then.
@@AryaPDipa Really curious what your intent behind your comment.
I would really enjoy a video about prenups
I personally don't give to Charity. I rather help those who in need personally, and I tend to focus on those around me instead for say, starving African children. The most important thing is that I don't just give away my money in the name of Charity, I lend money to people, and when they couldn't afford to pay (especially when it's for things like healthcare or education), I let the debt go, but still expect people to pay me back so people don't use me to get money.