People Have Stopped Paying Their Bills (Here's Why)
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- Опубликовано: 12 май 2024
- Ken McElroy and Danille McElroy discuss the financial landscape facing Millennials and Gen Z, who are often portrayed as poor money managers but face significantly less purchasing power than previous generations. They explore why they tend to rent indefinitely, the allure of immediate gratification over long-term savings, and actionable strategies like house hacking to navigate these challenges.
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Thank you so much it really means a lot.
Thanks for such great content! Ken, would you be interested in becoming an Equtiy owner or a lender on a deal in WA with $200k equity ? Thanks!
Mutica😂😂😂
Hey Ken. I was the one who said “pencils down, bro” to you in the locker room at the Village. I also told John Spead to drop that line during your session with him to give you a good laugh. Love the show!!
I'm a millenial and dropped out of high school in 2007, I'm 35 now. I use to watch all my friends go to college and it made me feel like a failure and little did I know I would end up being in a much better financial situation than most of them. I make about 100k/yr, I bought my first home in 2019 and equity has increased nearly 100% since then, meanwhile my friends that went to college have massive student debts with jobs that pay less than what I make. I'm so glad I dropped out of high school.
Lol imagine feeling like a failure because you havent got 100k worth of debt for a useless piece of paper. What a scam college is its unbelievable the way the market and shove it down ppls throat
congrats
Congrats, I'm feeling really vindicated these days too with not going to college. Had exs and other people tell me I wouldn't make it if I didn't, now I make way more and have more assets than them lol
I have a BS degree and I do a job that doesn't require a degree.
Not always the case. I am few years older than you. All my college friends, including myself make $150k/year with a college degree at our mid 30. Most engineering student then owe $10k student loan or zero after college. It is depending on how responsible is the student. If student use student loan as an extra bank account for fun then nothing is enough.
US OLDER PEOPLE ARE HAVING HARD TIMES TOO!!! IM 61 AND THE JOB I WORKED AT FOR 12 YEARS I NO LONGER HAVE. REGARDLESS OF AGE PEOPLE ARE BROKE AND STRUGGLING!!!
exactly
Tired of the cry babies... inflation is killing everyone!
Yep, but many older people are out of the workforce and no longer able to work, so there is no employment income tax for the government to exploit now or in the future.
Thank average joe
No we are not, I'm working 70 hour week's with plenty of overtime and extra money.
People get on my nerves with the pandemic spending. Those checks were spent within less than a week. It’s been 3-4 years who would still have that couple of hundred dollars.
16000 dollars in checks weren't spent in a week
Corporations?
Ppp loans extended unemployment infinity food stamps corp bailout mortgage holding no eviction but all most middle class just got the inflation none of the printed money
@@ErickaWilliamsCCwho got $16,000?
Great question, common misunderstanding. First of all, by far most of the pandemic era stimulus went to the rich in the form of almost immediately forgiven PPP loans and employee retention credits. Then a lot went to people not paying their utility bills, rent, mortgage and student loans for years. But most of where inflation comes from is the Federal (national) debt. As the government gives out money, it trickles up to the hands of the wealthy who have to put it to work so they buy up houses and new cars, often paying all cash. This screws the younger generation who don't own real estate.
The stimulus checks and child care credit and what not were just a red herring to get the unwashed masses distracted while the wealthy gorged on trillions of dollars of free money from the government that is now showing up in inflation.
I'm 75, grew up in the 50s. My parents taught me not to spend money I didn't have
So your saying let the lawn die?
Same !!!! I’m 25, but the principle is the same !! For whatever reason, young people think they’re invincible. Reality will hit them real quick.
@@MikeNapoli1989time in the market beats timing the market
Your parents were sages. First rule of $$$.
Everyone bought a home on a loan and that was money you didn’t have. And home prices were $7k so it would be easy to save up that money.
I finished high school and started going to college, I wanted to be an architect, I started to notice that the classes I was required to take didn't teach me anything about architecture after 3 years, I stopped and asked how long before I could get a job, they said 8 more years, I would've been early 30's by then. I dropped out that same day and went to work. By 25 I bought my 1st home with no debt. I'm 35 now still no debt, house is paid off
College is just an institution to make money. It seems like they dont really train you for any specific jobs..
Same. 35 and went for business. I probably had 2-3 business classes AT most. they made me take "religions of the world" and a bunch of nonsense classes
I've known a lot of people that go to college and not even land a job to what they went to school for
@@MichaelABruce-ew8zs I started my own freelancing biz but it wasn't bc college helped me that's for SURE! I was left with 21,000 in debt for an associates degree (U of Phoenix) and they LIED about absolutely everything!
@@MichaelABruce-ew8zsThat is true of MOST grads unfortunately.
Not too many English or history or gender studies factories around…
If I was 20 again, I'd be in trade school and working as much as possible. I'd be renting a room in a house or have an apartment with a roommate. I'd be saving up, and buy the cheapest house I could find. I'd find some friends or people similar in age and rent rooms to them to help pay off the mortgage. This is a tried and true method a lot of people I knew used to get their start. Also, I wouldn't be wasting money on Starbucks, Tattoos, vacations, luxury cars, luxury clothes, etc like these idiots are.
Tattoos 😅😅😅 I could never...😅😅...about how much is one
@@poincareconjecture5651 i knew someone who got a small skull with floral decor on her shoulder, it costed like 450 dollars, thats alot for that size
I thought the prob was essentials. I dont think starbucks or tattoos are sinking most households
It's easy to harp on Gen Z for "doom spending", but what did we expect? We took away their future. We strapped them with higher college debt and even lower salaries. 60-100k debt and 35-60k salaries for MOST of them. Not to mention cost of living, mostly rent/mortgage going to keep them down. We've got to stop this.
I agree...I always point to the ridiculously horrible example the Federal Government sets by their infinite overspending and debt...why would these kids ever pay off debt if the "authorities" dont???...
Them and us are just letting the elites take all the gdp frowth surplus. Blame yourself too@@chrishewitt8398
Not to mention you only see $28k on a $42k salary due to taxes! Then you get taxed again on everything you buy to survive.
We????
Maybe you, not me. I didn’t strap anyone with anything.
I agree that college tuition is outrageous but college loan debt is a self-inflicted wound.
At what point did parents stop saving for their kids college? When did the families who can't afford to save for college stop applying for scholarships and grants? Why do families with insufficient savings who are ineligible for scholarships and grants still go to college?
I am confused, I graduated in 1982 and could not find the job I studied for, for one and a half years. I had to live at my parent's home as my $200 a week full time waiter income only took care of my expenses which a good amount went to long distance calls as I fought to find that job. I did not spend above my means which meant I had to find adventure / enjoyment in inexpensive things, hiking/camping being the main venue. Also, my car was 10 years old and I had student debt, so thinking about a house was NOT in the cards until I was in my 30s. That initial one and a half years of living paycheck to paycheck while residing at my parent's home taught me how to not spend. Why do the kids today think that creating more debt instead of fighting to get out of debt is OK?.
Because some of them will never win and they know it!!!
@georgia9969 I totally get your point! To answer your question though, we must consider that the US government itself lives off credit (debt,) as do over half of Americans. Furthermore, in today's economy, young people see debt (credit,) as being their only means to obtain their desires. While we can (correctly) say that it is foolish, we must also realize that this is the financial ideology of our times. Sad but true!
@@shinehy403 Well I don't think debt is the issue but ability to pay the debt. Second outpacing expenses requires multiple factors in order to achieve. Last many of the basics require debt for the median person to buy: new cars, basic housing evidence by mortgages, education unless very inexpensive....
I’m a retired X’r and I’ve never felt like something really disastrous is on the horizon more than now. We have dual pensions but recently it’s become obvious that affordability at all levels is out of touch. Car prices shocking, home costs shocking, cost of eating out shocking, gas shocking, eating in, travel, services. I just wish what ever it is would just happen so we can get on with it 🤷♂️.
We arent getting SSI more likely in 15 years they are giving out to Ukraine and spend most of it but this nation seems to be headed into a neo socialism which I dont trust fully
Next step is collapse and the Beast System. Tribulation ahead. Jesus is your only hope.
Gen X here too, retired and living off pension, eyeballing social security checks in the coming yrs. Seems like the only time we could allot for fun financially was when the body has worn out. Alas, I agree with your opinion.
I’m a boomer who lived in an economy through the 1990’s that made the banking collapse look like a walk in the park. Based upon what is happening I suspect that the economy I saw during the 1990’s is going to be preferable than what is in store for us. If it’s half as bad as I think it’ll be it’s going to be brutal.
Gen Xer here, still working for the next 8-10 years, living in the CA Bay Area still have a son in high school. We refinanced our home in 2021, cashed out and built a house in Mexico for $100K ready for retirement. For now, it’s rented to other x pats temporarily. When we retire we plan to rent out our house in California. Our adult sons live with my elderly boomer mom nearby. One has a county job, the other is handicapped and lives off social security and food stamps . We all work together to care for each other. It’s the only way we can make it work for our family.
Back when I was $100k in debt I was more likely to spend because it felt like "who cares what's a little more to owe". Now that I am out of debt I watch every penny.
How much were you paying monthly to get out of debt? How many years did it take?
@@Rockerlady It took about four years and the amount I paid monthly varied, I didn't keep records. I found zero percent intro apr credit cards from credit unions for living expenses and basically my entire monthly paycheck after paying mortgage etc to debt, which varied from $1,500 -, $3,500. I got a better paying job during this too. My friends were all going on vacations, buying expensive cars etc but I lived a poor person lifestyle. I avoided eating out much, but I would go to a restaurant once a week with friends. I also broke up with my girlfriend at the time because she wanted me to spend so much. I am only recently out of debt and the total I paid was probably closer to $120-140k. The debt payoff journey was extremely difficult but I am so glad I did it because I can now start to enjoy life a lot more. Thanks for asking.
@@Silvercardinal7I’m $38k in debt. I just need 1 zero interest card and I will be able to get out of debt a whole lot faster… your story gives me hope
If you truly got out of that huge debt kuddos to you, you're uber unique, I'm super impressed! If you're just yapping shiyat shame on you!
@@Gladiator-qu7co lol thanks! Not just yappin'. Growing up I had family and friends struggling and I didn't want to end up the same way. Well, I kinda did end up the same way, and when I realized this it lit a fire under me.
I hired a real estate agent the day the Repo Markets crashed back in September of 2019. I knew a crash was imminent and knew that I'd have to leave California to somewhere safe. Event 201 was the very next month where the pandemic was planned out and the first cases of covid appeared in California a month after that.
I bought a house in Amish Country. It is 3000sqft with a large lot. I bought it sight unseen but I used my VA benefits as I knew that the VA had my back and wouldn't let me buy trash. I bought this beautiful home for $136k, zero money down and since it is a VA loan I do not have to pay mortgage insurance. Oh yeah, got the place at 3.5% fixed interest. Mortgage, property taxes, and a very aggressive insurance policy costs me a grand total of $905 a month.
The people I left behind are paying $5k a month or more to rent their tiny places. There are homeless everywhere and inflation and energy costs are much much higher there.
That said, I'd be a fool to ever give this place up. I should also mention that I told anyone that would listen about the upcoming economic crash and how I thought weapons of mass destruction would be used on the population but I was viewed as crazy. Well, many of those people are now homeless or on the verge of becoming homeless and didn't listen to me and get out when they had the chance.
I have 2 daughters and 2 nephews all under the age if 25. I taught them from an early age to save and avoid debt at all costs. All of them have a fully funded emergency fund. All of them are saving for retirement. The 2 oldest live on their own (2 are too young), all own their cars debt free (7 cars between my 2 nephews), 1 owns his home, 1 is looking and has plenty to put down. All of this WITH ZERO PARENTAL SUPPORT! They can do this with hard work and NO DEBT MINDSET! Don't fall for this, 'I'll always be in debt... I'll always have a car payment.... I'll never own a home' STAY. OUT. OF. DEBT. live below your means. Save an plan for retirement. If anyone tells you otherwise they're broke.
But Jason doing it since 2022 is almost impossible
You can work hard like my husband and i and still get nowhere. We are debt free but are scraping by just to eat. Our one debt is mortgage. My 4 children i can't see leaving home on minimum wage. It would take at least $25 hr job to get by on your own to save for retirement. Inflation is not matching how much people are getting paid. It takes 3 minimum wage incomes to raise a family today. in the 90s my parents only needed one income. I agree hard work is ok but, over worked is not. We need more parents at home with their kids. Gov & big corp has taken advantage of the middle class far too long. Time to vote out the crooks in congress
Thats awesome!
Unfortunately money is debt and savers get punished for saving with inflation
You must be a student of Dave Ramsey. I taught my children to not borrow money if it is over 4%. Then invest the money you had saved. Long term it is a better strategy as long as you are disciplined
Groceries have gone up 50 to 60 perent! I grocery shop for my family and i see this. The corporations shrink the packaing and put less product while raising costs. Amd colleges were cheaper in 70s and 80! Dont lie now its 50 to 60 k per semester max for a carerr that only starts at 40 or 60 k. Colleges need to be cheaper and the employers need to pay more. This is unsustainable you will see
I used to snack on the "Sharing Size" Peanut M&M's. They were .99 cents before, now they're over $3 while bananas have been steady @ .59 cents a pound. I wonder why a peanut m&m would inflate that much and a banana would not? *WTF!?*
Everything grocery is more expensive by a lot and smaller packaging, 12oz bacon $6 as an example, all products are smaller but made to look the same in the packaging ..
When the government guarantees the student loans, schools are more than happy to raise tuition.
1So true. Fast food their burgers and fries are a lot smaller. Large fries from Wendy's is actually small size now. Every packaged a lot less and a lot expensive yes I noticed that too
There are some that are spending foolishly, but many are using credit cards to just survive.
Why do all these podcasts don't mention us x generation folks ,I'm 58 started paying tax when I was 14 years old ,I worked a 40 hour a week job in a restaurant while attending high school ,I have Paid into social security for 44 years and will probably get none of it back.this being said we Gen x folks are tough,we were basically self raised ,denied pensions and not taught to save invest ect.we had to learn it on our own,I don't understand why we are always not mentioned forgotten or dismissed as nothing.
We're X for a reason. Noone gives a damn about us. Never have and never will.
Wages have not kept up with the economy. The top 1% have received it all. The economy is a zero sum game. Even if the average worker earns more inflation destroys the gain.
100% agree. Severely rigged fake economy.
and poor budgeting doesn't help
@@maryl234you cannot budget if not paid livable wage and expenses to live are higher than wages
Kleptocracy meets Home Economics!
Wow, the people that can't see the system is not working for 60-70% of the people, how can you not see it? The anger is building fast.
There are people who are struggling and people who are not. The ones who are not struggling are keeping this economy going. You can’t spend money you don’t have as the credit dries up
Top priority issues of 2024 voters :
1) Economy.
2) Border.
3) Crime.
We The People...
Stand up to save America...
USA USA USA USA USA USA
Same thing for the past 30 years
@@richardmyers7847 Unfortunately, you're blind 😭!!!!
I know a lot of people don’t want to do it, but from working in automotive collision I made 6 figures my first year out of my one and a half year apprenticeship. I bought a house at 21 with no debt. There are ways, people just aren’t looking for them.
In my day Boomers had roommates, bought used cars, didn't pay for doordash/ food delivery, or have $1,000 phones. My first home was a 1,200 sq ft ranch home financed at 13.5 % interest. All the videos I've seen with GenZ or millennials are talking about not being able to afford rent want to live alone and spend alot of money on nonessentials. It's all about priorities.
Doordash and food delivery services didnt exist back then. If the convenience of these services existed back then, you most likely would have taken advantage of them as well. You bought used cars because leasing became the norm and so there were a lot more used cars available after 2-3 year leases ended. The cars were less expensive for younger buyers looking for their first car.
@@japanesecinema6736Im 32 yo. I never use doordash or uber. I packy lunch for work, always bought cheap used toyotas and now own over a million in real estate. My starting salary was 22k and now i jut crossed 75k. It can be done
Even if the average millennial saved 100% of the income, it wouldn’t be enough to buy a home. It’s like you didn’t hear the numbers in this video. It’s a mathematical improbable. You must not be good at math.
My daughter's are millennials and have purchased a home because they got an education, work, and are frugal. I raised them as a single parent, invested for retirement, and am good at math. And no, I wouldn't have used door dash if it had existed because of the cost. Again, priorities and goals!
And what was the total cost of that home? The interest rate tells us nothing. How much of a percentage of your monthly income did the mortgage take up?
What degrees one graduates with is important. Can’t pay off loans if you graduate with a degree that you only make 17 bucks an hour
Many young people who think they have an income problem actually have a worse spending problem.
Oh yeah. while we send 38 billion to israel every year. Also 30 billion to ukraine. Sure yeah. Dang these Millennials and their spending problems lmao.
Back in the days when homes were $100-$200k makes sense to own.
Who wants to pay for homes that are in the millions and pay crazy taxes and maintenance and be a slave for a house and have no life !
That’s exactly how I feel now , pay tax and maintenance, that’s my vacation $$$
And what happens when the bubble collapses? People will be upside on their mortgages.
Dont make a bill. Then you dont have to pay a debt.
If you cant afford to pay, dont go into debt! Smartest Advice and use Cash to buy, not credit cards!
I just decided I was buying junk. I just stopped buying junk. And ironically just bought a new purse!
Just keep in mind what goes inside the purse is more important than the purse itself😊
@mariaines4508 well when you stop buying plastic junk and save $$$ you can afford to buy a better quality purse! Also we have no car payments, our home is paid for and we have 2 clean renewable energies for our home(solar and geothermal), hence our energy bill for our home is nothing. Plus we drive EVs, no gas to pay for and a robot lawnmower, hence also no gas to pay for. I'm pretty sure we are OK. Oh and we grow most our own food.🙄
A new purse is junk
The only people buying houses already have houses to tap into the equity. First time home buyers are priced out. Why the hell would anyone pay $3300/month for a mortgage when the same house rents for $2200? Those numbers are after $80-100k out of pocket down payment. Save the extra $1100/month and earn interest on the $80-100k in savings...wait it out. Unemployment will come after the printed money runs out. Folks are not getting raises as companies cut back due to demand dropping. Layoffs will come and people will have to eventually sell. History does not repeat but it does rhyme.
@@dissident112 It runs out for the poor folks. Companies will still get there handouts from the state and federal gov'ts. The Feds will try to stimulate by offering tax breaks and contracts for big companies but that will boost stock prices and not working people's pockets. The companies will see lower and lower demand, falling prices and layoffs. The Fed will lower rates to boost the stocks and try to keep real estate equity as high as possible so folks can borrow to keep the Ponzi going. We will see when the house of cards falls. This cannot keep going indefinitely.
Totally agree. I can sparse money, time and energy to build career by living in apartment that very accessible for everything.
How can save the savings you never actually had. If someone downsizes that’ll work, otherwise it’s a mental exercise, save what you can. I don’t envy buyers today. I haven’t for about 15 years now.
Open a time account
A jumbo time account
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Charlotte Miller.
The very first time we tried, we invested $1000 and after a week, we received $7500. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I'm new at this, please how can I reach her?
Most people are retiring this year and has nothing to show for. But I assure you it's never late to get your financial life together again.. All thanks to Charlotte Grace Miller for I and my family
Young people are spending a lot because they aren’t starting families. Beyond that, tuition, mortgages and car payments are essentially out of reach, or just unreasonable. Older generations seem indifferent and just say it was hard for them too, but statistically that’s just ignorance. Absolutely no reflection of the policies or behaviors that brought us to this point. Older folks have washed their hands of the issue. Amazing.
I was in Lows this morning at 8:30 and their was literally no customers
Because who wants to pad the pockets of Lowe's top layer of CEO fat.
You want to buy a vowel?
Someone needs an English lesson!
I never seen a store name "Lows", but i shop at Lowes once and a while..
What if this poster doesn’t have English as his/her first language? I’m Asian Am and have been in this country for 45 years. Besides that, the country I was born from had English taught to us in the 1st grade side by side with our national language. Then I had my own indigenous vernaculars in my island plus Spanish because my grandparent were of Spanish lineage. So I came speaking about 4 languages. So it’s not far fetched to miss-speak or miss-type here or there. Have some grace.
Really appreciate the down-to-earth perspective you both have. Good to know you can still relate to the financial situations of all. Really like watching you guys, thanks for what you offer!
Nowhere to hang your purse if you don't have a home.
As a boomer, we didn't buy our first home until I was 32 and my husband was 38. Our home outside of Seattle was a repo and it costs $85k. Our debt to income ratio was nothing. But my point is, I think the stats that Danille is quoting about Genzers really don't mean much. Let's check back with the Genzers in 7 years. Of course they need to play now.
The only thing keeping the housing circus tent up is the Govt.
THE GOVT IS THE CIRCUS. R and D
When people say Govt. please clarify what government since it mostly the city and state that causes this, vote out your city counsel.
@@makitata9576 it is the federal govt fault. They were giving out 0 interest loans to the banks which drove everything up. Then they gave out all that free money after they shut the country down. Everybody was then over paying for homes. On top of letting Wall Street in the family real estate markets. And Chinese to buy land and houses. It is all the federal governments fault
Good word: Circus. No doubt!
Smoke and mirrors Literally
Building permits have become unacceptable. 60% of Building costs in some cities
Yup, 100% true. It's $18,000 to get a residential 1" water meter in Clark County Nevada. That is JUST THE FEE. The owner must pull permits and pay for the water service installation. The Las Vegas Valley Water District charges an $18,000. fee just to hook up, PER HOUSE!!!!
Definitely. Decrease these costs for building houses and put a limit on how many houses a company can own.
@@nickelfrizz Ok then a company could form another LLC to buy more homes.
@@anthonyrocchio5419 OK well. Don't live there then.
It doesn't effect YOU if OTHER PLACES are charging high fees. You have a choice.
I was going to build a rental on a lot I bought and the impact fee's were $30K. INSANE!
I am a boomer and there were not any loans to pay off for college tuition. If you didn't have the money you didn't go to school.
That simply isn't true. Ever heard of the GI Bill, Pell grants etc.? Also, many parents borrowed against their homes, Boomers just didn't pay for it and that is why people hate Boomer, because you were spoiled brats and your generation loaded us up with all this debt.
It's was boomers like you that thought going off Breton woods was a good idea too. Now you let all proceeding administration run the printer press and de-base the currency impoverishing all future generations. Thatnear 35 trillion in debt is only going to climb higher and your generation will be the last to receive the social security benefits that we are still paying into to fund yours.. your welcome.
Yeah and clearly as a boomer, youre not smart enough to understand why. "According to Business Insider, Baby Boomers paid $39,780 for a four-year public university in today's dollars."
@@japanesecinema6736 Why the disrespect for Boomers? The Government put this all in place. Factors like, taking America off the Gold Standard ("print" as much money as you want), dropping interest rates to zero, dropping bank reserves to zero with Fractional Banking allowed practically unlimited money expansion/inflation. Vote differently.
@@japanesecinema6736those that went to college. Almost all didn’t ! Most went in the trades .
This is not a housing crisis this is a salary crisis. If you look at the numbers wages have not gone up as inflation has soared.
One lady I know, was 60 years old, and got college loans to pay her living expenses before she retired. She never intented to pay the college loans back.
The only homes they build are 500k
I appreciate you guys taking the time to talk about this even though it's a tough subject. Thank you Ken
In 1974 in the State of Texas,I paid for 3 semesters of medical school for $750 dollars. We paid same tuition as undergraduate per semester.
You two are so creative and generous with your advice. It’s practical and down to earth. Hopefully see you hold a conference in Australia some time. 😊
If whatever cohort decides to YOLO they better not come crying later for a handout to afford a mortgage. Do the hard thing and save or move to where it’s affordable. It’s not the rest of the country’s obligation to make your life easy.
Well said 👍👏👏
I mean I kinda felt that way towards the people who borrowed high student loans and I’m still mad that they got a bail out.
Most Colleges are DRASTICALLY overpriced.
I'm an old millennial. My mechanical engineering degree cost me $20k graduated 2007. My starting salary was $52k.
Now an engineering degree at that same college is $40k after almost 20 years. The starting salary for a mechanical engineer is closer to $70-80k.
The degree cost 20k more. The starting salary is $20k-30k more.
Not so bad.
Kids need to stop wasting money going to these expensive ivy league and private schools.
Many of them are essentially hedge funds that also do teaching. It's insane.
If your starting salary can't pay off your entire degree in the first year or 2 you are doing something wrong.
So what is the problem? You make more money and can pay this off in a year or so.
When I was getting my computer science undergrad degree at UC Berkeley in the early-mid 1990s, it cost about $720 per semester. Stanford, just down the road in Palo Alto, was $20,000 per year. It was a no-brainer. I think state schools (for in-state tuition) are probably still far less than private schools, so as long as you get a degree with jobs waiting when you graduate, it's feasible.
Engineer pay is too low. 5 years in I should be at $250k.
@@MrSteeDoo, exactly. There is no problem. The problem is idiots choosing to waste hundreds of thousands on worthless degrees and then whining about the results of their choices.
@abel4776 , if you want to make $250k a year for an engineer, you need to start your own business. Problem is they could pay some dude in India $45k to do the same work.
As a side hustle, I'm building a new primary residence every 2 years and taking advantage of the section 121 capital gains tax exclusion of $250k(single)/$500k(married).
If you make $500k profit tax-free every 2 years, it's worth the equivalent of $390k+ as a w2 employee.
Would you recommend to buy a house from new construction in San Antonio or a lot and put a manufactured home there instead if both cash flow?
This was a banger! Thanks guys
A couple of points missing in all this push to get you to “buy, buy, buy” is the mental stress of ownership (repairs, taxes, lawn work, maintenance) and time/energy of organizing all the repairs and projects. I’ve been a homeowner for 17 years with two different houses. It’s important to Know what you are getting into when you buy a house. The $800 Taylor swift ticket money might go to essentials like an exterminator! If you like having a lot of housework and don’t travel too much then you will like it. The “house projects” list for most homeowners is ongoing and causes a ton of stress. My friends just moved into a home that was not in the best shape and they said their “list” is already 10 pages long.
So why do so few schools teach economics and study the cost of living, the average income by trade, and the amortization table for the student loans? It seems most students have no clue as the debt service on those long term loans.
I've learned to pay off a car, save for the next, and have it fully saved for before buying another car. My credit card is on auto pay to pay the balance each month. No interest payments and I receive the cashback bonus.
Without being in debt to pay on high interest rate loans, it has enabled me to invest as an alternative to savings which pay so poorly as to not be paying at all. Investments now pay dividends exceeding $1000/month. The dividend snowball is gaining speed as the dividends are reinvested.
No taught this in school. We need living math classes
They don't teach the common Folk economics because it's easier to just take our money. It Is by Design read the birthdirth. Kings, queens, nobles, and surfs is still a thing. It just has a different label.
Because we are only educated to get a JOB & to not never know anything else~At all~!!!!!!!!!!!!!!!!!!!!
Yeah but don't you get taxed at like 45% on the dividends you make?
@@TyrannicalRUclips Speak with your financial advisor. Stocks held in a Roth IRA are not taxed. There are other exceptions too. Look up the taxed rates online.
Many people are afraid of the tax on stock, and they are often the same people who will not turn down the Christmas Bonus because it too is taxed.
Celebrating a milestone today. One of my stocks WES just crossed the 7X purchase price today. Paid 5.42 per share for it. Today it closed at 35.97. Due to the low purchase price, the $3.50 annual dividend is 64% payback annually now. Yes I pay taxes on the dividends, since that one is not in an IRA.
28:17 dealing with loan advisors most of them are like sleezy car salesmen. They don’t want to help you they just want to run your credit and make the most money possible. They are not looking out for your best interest.
Getting folks to rent rooms is not a new idea for this generation. I am gen x and I did that. I got two roommates through church and it made my $1300/month payment about $300/month. When I got married I had to stop that but it got me into the house
LOVE THAT
That's the only way it's going to work. I currently am married with a roommate. Inherited a house and also have a tenant. Unfortunately wasn't able to get this plan off the ground until now.
Thanks, Joe you’re doing great!
Pencils Down helped me too. Thanks for that one, Ken!
Spending money you don’t have is plain giving into an evil spirit, and a big fat lie that leads to total personal ruin!!
So your saying buy a house in full with cash?
Everyone is not spending money, just to be foolish, people are trying to survive, well most of us anyway.
Why aren’t we talking about entrepreneurship?
In the end, we should be investing in real estate if you wanna be a sustainable business entrepreneur. Cash first then you can implement the golden rule. He who has the gold makes the rules.
@Danielle , you're spot on with statistics and facts today. Ken, you too. Best show I've seen in a while for general statistics. Request for more videos like this from time to time. House hack idea too.....
22:38 thank you for confirming the plan this year
I’m a 32 year old guy who lives in Greensboro, NC
$0 in student loans
Make $120k yr from 9-5
Make $20k yr from a side business
$18k yr house hacking by living in an AUD behind my house and renting my main house.
$100k in home equity
$0 cc debt
$27k car debt
$100k left on mortgage
Would be good but my wife has over $200k in student loan debt and doesn’t even use her degree. She stays home with our two kids.
So I just gotta keep grinding goal is to get the side biz to over 6 figures in 1-2 years.
i hope your wife is pretty as i imagine she is. her education is costing you about 10 k per year in real world economics. and it does not add value.
@@kurtgandenberger6139 She definitely is and I kind of look at her degree as insurance against me being unable to work because she could go make six figures herself tomorrow if she wanted to but she chooses to raise our kids instead. I’d rather them be raised by her than a daycare as long as we can make it work even if it does add more time to our journey of getting out of the rat race.
I also have a friend that lives in an area where there’s more land in San Diego. He is renting out areas for people to live in their ever or trailers. This is something I’m seeing a lot in San Diego since the prices are so high.
I love talking to broke kids. They drive a new BMW, doordash lunch, and eat out every dinner.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
Honestly there is never any culture of wealth gathering or wealth creation to keep multiplying your finance that lacks an investment value Instead of saving money in the bank . This means, if you want to be successful you must be an investor,
I agree with you had a senior colleague at work who was doing well but never had an investment. Unfortunately he lost his job and went from living a comfortable life to hardship. There would had been something to fall back on if he had an investment
that's why I always urge everyone to start investing somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an ex pert can lead to a great loss too
exactly! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
Young people have more expenses as well. Streaming services, cell phones, etc.
Thanks for the great content !
I don’t see gen Z ever moving out. These prices are insane
My son is 12 and we already know he's going to be living with us forever. Hopefully we can get our small mortgage paid off before the dollar collapses and he'll always have a home.
I don’t understand how people have so much debt. I was a single of 2 little children and graduated B.S degree in engineering in Dec 2018, but I didn’t have a single dollar debt. Since graduated, I have saved at least $30K cash/year and plus contribution of 20% 401K, 10%ESPP, good amount of HSA. I know how to save. That’s all.
It’s not what you saved, it’s what you earned. You earned enough to save that much. Not everyone is an engineer!
That’s wonderful for you, but this is so tone deaf.
It's very depressing. I see why it's hard for Ken to stay motivated.
They'll never be able to afford a home
New viewer from central Illinois. Really enjoyed watching tonight. I especially liked the charts. It really put things into perspective. I'm a baby boomer who bought my first house in 1985 for 36,000 in Chicago. Very nice house and raised 5 kids there. But today, divorced and raising a disabled adult son is a much different scenario. I rent but have been blessed, a very nice home at a modest price. I am able to live a balance of four walls, food, no debt and save at 65 years of age. It all has changed so much. I worry for my kids who can't stay home to raise their kids bc they, daughters and husbands HAVE to work. I worry for them. I remember the Carol Roth book..."YOU WILL OWN NOTHING AND BE HAPPY".
😢
Wait. I thought george soros said you'll own nothing and be happy. Who is Carol Roth?
Buy a 4 Plex Owner Occupied. Live in One Unit, Rent the Other 3 Units Out. Live in It for One Year and One Day and Then Do It Again 🤔🤔The Next Two Years Will Be a Possibility to Do This. Multi Family (Residential 1-4 units) is More Labor Intensive, But Quicker Time to Acquire Real Estate.
Thank you Ken, Danille, and team for another data driven video with impactful takeaways. Inflation is going to continue to squeeze the typical W-2 worker--especially if they have floating rate debt. Now is the time to invest in hard assets, like real estate, that go up with inflation so these forces are working for you plus the government rewards you for providing housing with additional tax savings. We cannot save our way out of rising costs with the diminishing purchasing power of the dollar and wages are not keeping up with inflation. In fact, inflation is eating away at your savings if not invested in an asset that returns a yield greater than inflation like real estate. To your success!
It should be illegal to offer pointless degrees
It should be illegal to loan an 18 year old money with no job. Who does that? Oh our govt. stop borrowing money to go to school
And YOU are the one to decide which ones are pointless? It sounds like you want to control people.
@@MrSteeDoo Really you cant think of a few gender studies ,professional political activism, harry potter and taylor swift classes, its not controlling people when your tax dollars bail them out for stupid classes that do no get you a job.
It should be illegal to be so dumb you choose a direction without job opportunities.
@@MrSteeDoo Degrees that offer no ROI should not be obtained with loans. It’s not control; it’s common sense.
Wait a minute. You said in the 70’s a boomer made 25 k a year and had a 100k house & you said they could pay it off in 4 years? What?? Did you ever hear of other expenses to live? Lol
It’s hypothetical for ratio purposes.
What is house to income ratio in Canada? Vancouver Canada?
I’ve done wholesaling, flips, invested with a small home builder, owned a handful of small commercial properties and owned a few residential rentals. I’d like to get into more commercial properties like maybe some small 30-50 unit apartment complexes. Can you spend some time talking about how to raise capital and how to structure the deal? Should investors just be debt or should it include equity?
Love how you both keep teaching us. Thank you
My plan is 203 (K) via FHA to start. 4plex qualifying now. Cash flowing from the beginning. Sounds easy but I'm getting opposed by every side
I never had any financial education at home. The book Rich Dad Poor Dad that I read while I was going through Community College was a really “eye opening” for me. I got my 4 year college degree with under $15k in student loan which I paid off in less in 3 years and right after I started to save for my first home which was the best thing I ever did in 2013.
Hello, how do one finds an investor to lend the $ to a young college graduate who wants to buy a house that needs repairs?
Ty
I don't see unaffordability putting upward pressure on rent prices. I hear about countless colleagues who have Gen z children living at home with them. That's decreased demand for housing, multigenerational bundling means lower household formation.
And on another note, if Fannie and Freddie start servicing HELOCs well be a stones throw away from another 08 crisis I'd say.
You are right about that.
I'm not college educated and I make more than the average 😜🤣 college is a scam.
Your doing a great job!
Thank you, guys! I learned so much from you. I just discovered you:)
Great video
I don't feel sorry for them. If you don't have the money, you stay home and go to community college for 2-years before transferring to in-state public college. If you want to go out of state and pay that tuition and live in an apartment, well then you pay the bill.
Thanks!
I know a couple on San Diego that rented one of their rooms out to a college student and they had a family
They're doing it up in Tacoma, WA as well. $800 for a _room_ is pretty standard.
Same thing here
I don't understand ?? how is inflation lowered? I keep hearing that but everything seems doubled in price ?? Rent keeps going up medical costs keep going up? Groceries shy high! Cant buy a home , can't buy a new car and can't even get parts ? Or workers like mechanics..
The _rate_ of inflation. For prices to drop it'd be _deflation._ The hope is that our current inflation rate will stall at zero and then we get to stay where are for awhile, rather than the constant price hikes that're killing us all.
Join the military, they are having recruiting issues, and they can help with student loans with the G I Bill
100% true!!!
That's how i paid for college ... got an MBA with 0 student loans.
The best way to obtain a house is to inherit it. That's my advice to deeply in debt folks.
When I work with somebody who’s in debt, I look to redirect some of their funds and utilize what’s called a debt action plan. One of my clients have almost six figures in cc debt, and it would take them 13 yrs to pay it off (and the mortgage). But by redirecting, we’re able to get rid off the third party creditors in four years and 11 months.
I didn't go to college. I saved several years for a down payment. I found a nice house in 2011. I took out a 30-year mortgage. I didn't do much for myself for the next 8 years. I paid my house off in 8 years and 3 months. It is great not having this debt.
In other words you’re old, and were born at a good time. lol. We all could do this if given prices in 2011
A choice comes to mind ... Are you willing to share your home with another person to slash your house pymt?
Or will you go the other route...end up unable to afford and lose your home.
These times point to accommodate to live
35:40 sine curve, everything is a cycle.
So true 🙌… ah I never go to Home Depot on Saturday @ 12 noon because of crowds… Today we did go & Shock, got those bags of crushed stone, a helper & check out in 5 minutes!!! Insane, ah Also noticed BNPL/ Klarna on buy box sites including Walmart….lastly, Starbucks taking time to refresh the store $$$. Thanks for your channel 💕
Hi All, I always watch from South Africa and am a bit curious...how come some of the US banking and political executives say there is no debt problem in US and the general population seem to perceive otherwise?
They're gaslighting us..fortunately some people are starting to call bullshit
Because they lie! They are trying to save face while they treat their citizens like garbage and send funding and TAX PAYER MONEY overseas
The real reason as to why, I wouldn't know, but the banking system benefits from the debt so why would they see it as a problem?
I own a rental and I had to look for a new tenant and one applicant wanted me to come down on the rent because he couldnt afford the amount I was asking for because he had to pay his Tesla. 🤦🏻♂️
did you tell him to live in his tesla then ? lol
One thing you are missing is the multiple of the loan. Back in my investor days to figure out the monthly PITI payment I would take the price and multiply it by .007. In my head, 400k mortgage times .007 is $2800 a month. When rates were low it was a multiple of .005 (400k mortgage was $2000 a month). Now it's .009 (400k mortgage is $3600 a month)!!! The crazy thing is that it's the same interest rate now (approx. 7.5%) as it was back then. Because of the crazy taxes and insurance fees the multiple has gone up by 2 times
The cost of housing also includes permits. in Santa Cruz County, California.It's about seventy five thousand dollars for the permit and about a six month wait
Thank you Ken and crew for making content. We know you don’t need to make it but it’s appreciated.
When there are stats about boomers, I always wonder what boomers they're talking sbout..my parents both had masters degrees and it took them months of driving the country to take any job they could get in the 70s. Their salary was like $5,000. I just looked it up and median Household income 1970 was $9,000. That was 2 parents working and sometimes a parent living with them also working. We had a tiny trailer with no a/c and had to sell our couch to ear potatoes. No food stamps! What fantasy world are people living in when they say boomers had it good. Not where we lived.
The boomers destroyed our economy over the years and the trouble we’re in now is a direct result of reckless spending and greed. Every generation since has been suffering because of them!
Boomers have things because they have worked 40+ years. You can have things too but you just can have them RIGHT NOW.
While all true I’m sure nobody is trying to compare who had to eat the most ramen to get ahead.. it’s about the fact that in general, not in some specific circumstance, but in general, boomers had more opportunities to get a little piece of the American pie if they worked for it.. now it seems in general, not in some specific circumstances but in general, they are not seeing opportunities to own and build their own little piece of America.. a fear of being a renter all your life is not cool, or fear of being a debtor all their life.. I’m not a gen z but I get it because it’s obvious how things have changed to me..
@@MrNick615 so your saying the problem is fear.
@ the local Home Depot and or Lowes no discounts a 3 bedroom home can be built with ~$30,000 even with Alaska prices but rather than traditional ways pf bidding has changed now they X3 the material costs.
Our neighbor rents out their garage and fixed the upper pert of their house with a separate upstairs. Good for them, thing is I’m not getting an annoyance fee. The renters get loud at times and forget there are others in the neighborhood besides them.