Warning: whenever I do a video about money a LOT of manipulative comments creep to the top. They seem like people legitimately talking about a money issue, but then have abnormally large amounts of likes and replies and then one reply will advertise some financial advisor. Beware.
This happens on every financial channel. It bothers me that some otherwise respectable channels don’t take the bots’ comments down, even after months, in some cases. Thank you acknowledging them. I wish RUclips itself would crack down on these bots.
I can't stand those and then they get their buddies to reply and make it look legit for less aware folks. I try to comment that it's a scam when I see them. I encourage any of you to do the same. Hopefully enough people calling it out will save a unknowing soul some heartache
I was on holiday with my dad in spain last year when he fell and broke a hip. Being able to just get a hotel near the hospital, and being able to miss my flight home and book a new flight without worrying about money was amazing. There was so much to stress over already, I'm very happy that i didn't need to worry about money as well.
It is why 80% of those who are wealthy inherited it. They did not earn it so have no need to delay anything. There is no gratification in not living a comfortable life once your death is paid for.
Not a distinct trait. Money slips through my hands faster the less I have of it. As soon as I had a steady job that was more than 2x my rent, I became a budgeting and saving wizard. Funny how that works. And by the way, I didn't get the job by delaying gratification. I had lucky connections.
Your right that postpone gratification the most distinct trait to indicate the capability to build wealth.but what if I do not care about material things. I just don't spend much because i have no desire to spend money on materialistic things because I do not anything.
I’ve been watching a lot of different budgeting channels for about two years now, and the best advice I’ve seen is to budget for your fun spending. Telling yourself you have, say, $100 a month to spend on literally whatever you want really helps to be able to save. It’s like giving yourself an allowance like you’re a child again and we’re forced to save the little bit of money you got 😂
It's like eating healthy. It has to be healthy but not to the extent that it isn't tolerable, and everyone has a different level of discipline they can tolerate.
That just guarantees that you will squander at least $100/MTH. It doesn't save squat. Pissing away $100/MTH every month results in a well stocked abandoned storage unit. Stop buying shirts.
Great advice! The best thing I ever did for myself was plan my retirement ten years beforehand. I tried to picture every REALISTIC scenario of something bad happening (blown furnace, water heater, heat pump, outrageous oil prices) and created individual savings accounts. Each paycheck a small slice of money automatically went into each savings account. When I retired this year my house and car had been paid off already and all of my “oh sh*t!” savings accounts were fully funded. As a result, after bills are paid, I still have 60% of my pension income remaining. The incredible feeling of relief at not having to worry is amazing.
Everything you described is exactly how I approach my finances and I am amazingly blessed to be in the same situation as you (except I have more hair on my head and less on my chin). This means I didn’t learn much, but I greatly enjoyed feeling validated. I guess I learned that I enjoy feeling validated. Thanks for that.
I hate that in the U.S. a medical catastrophe can pretty much kill all your savings and leave you with nothing. If we had access to universal health care, the nation would have a lot fewer destitute people. And we would be less likely to lose everything we worked for because we got sick or had an accident.
Not a bad approach, but this won’t save you a penny. Health care isn’t free so you will pay for it in taxes. If the government controls costs, you will get lower quality or less healthcare value. Admittedly, do we need to spend $500,000 on a 91 year old cancer patient? Answer now and then again when you are 91!
@@samuelbonacorsi2048 IMHO, the discussion shouldn't be around the solution, but what exactly the problem is. US pays the most for some of the worst health outcomes. I don't care what the solution is, but it needs to be fixed. I refuse to accept that we just can't do any better when literally every other developed country does better than us.
I have 2 cousins, brothers, and the older brother, he was in one of those sleazy financial 'bro' jobs, he was making about $400k a year for a decade or so, bought cars, clothes, all that (probably spent an inordinate amount on 'talcum powder' too, you can picture him I'm sure). He lost his job after doing it for years - I think because of a tax thing - and he had........nothing. He hadn't saved any, I think his cars were leased, and so on. His brother, works a dead-end job and isn't the fizziest drink in the fridge, earns very little, but works hard, spends little - this isn't a parable, this is real - he's a good guy, and now, his older brother, kinda mooches off him. Not always, he doesn't live with him, but at any family event, the brother who is diligent and frugal pays for food and drink and hotel rooms and such for his spend-thrift brother. I don't really know where I'm going with this, it just pisses me off.
Some good people don't mind helping others. That works as long as the good person isn't being abused. You gotta realise some people are easily brainwashed with materialism and have blind spots in their IQ. It's not always their fault if they ar born a bit dim and unwise. Many good people don't want to see their annoying siblings on the street poverty stricken and in despair so they 'carry' them to a certain extent.
@@jfree2737 ... And when the winter came, the grasshopper hopped into his sports car and drove to Florida. And the ant got stepped on :) ruclips.net/video/pJAYsKjJtM4/видео.html
I find lists of things I'd like to buy pretty useful. I have hundreds of books and ebooks I've never read, now I just add any new ones to a list and act as if I have them. Once they're on the list the rule is I can buy it the moment I'm ready to start reading. Same goes for hobby stuff, video games, tools, clothes and a whole bunch of other stuff. I have a fortune worth of items I can use at a moments notice. I just haven't bought them yet.
This is brilliant -- I am adopting the same approach from now on! I have so many books that I have not read yet, but kept getting more -- will get a list going :)
Yeah, you can't become a miser. Saving money is great, and there are usually some easy cuts to be made that don't negatively affect, and may actually improve your life. For me cutting fast-food was a big savings, and when I make food at home it is usually healthier.
Hahaha love the humor in this video! I took the same conservative approach for the past 20 years, once I realized I cannot earn much- focused on health and raising my son right (the cheap things in life). Now I’m in my mid 40s and have some old medical bills hanging over my head but it’s nothing considering I’m in better health than many of my peers, have avoided passing the multi-generational trauma on to my kid, and now all I have to do is earn money and enjoy life!
I have a Blu-ray, Comic Book, and Video Game addiction. But I only allow myself to buy things on sale, never full price. I can't believe people are paying $70 for video games when you can just wait a few months.
Used to think the same. Unfortunately, this time has ended. At this point you have to wait for years for AAA games to down in price. Not impossible given just how much stuff is out there, but if you want to be in on a hype the better alternative is to prioritize and just buy less.
Once you have enough wealth to not worry about yourself, you're able to be generous. Even if it's for selfish reasons. Being generous with money is one of the best virtues.
We sponsored 17 families this Christmas at our neighborhood center for Christmas-there were 57 children in all. Driving away I seriously felt like Scrooge after he woke up: Light as a feather, I am as happy as an angel, I am as merry as a schoolboy. I am as giddy as a drunken man. It was the happiest I have been in a long time. I heard someone say If you don't think money can make you happy, you just haven't given enough away yet.
That math equation demonstration...I used to do the exact same thing, EXCEPT, now I figured out an easier way. So, using your example and, say... 10 years: 1000*1.08^10 Or 15 years: 1000*1.08^15 The power of exponents! Hope this helps you too. Edit - I just watched the part where you like to see it grow using the equals sign. That's a good point. I'm with you.
There was a graph I saw onces of how much people earn vs how much they spend and mostly the more you have, the more you spend and the same amount you have left in the end. Its also how people that suddenly get a lot of money usually change their lifestyle, but then run out and try to keep the lifestyle going, ending badly
I could think of nothing more horrifying than having more money than i know what to do with, living a lavish lifestyle temporarily, then have to go back to a 9 to 5 job and be poor again. no spankyou. Slow and steady wins the race.
I appreciate the video and trying to help. I used the $20 rule. I was able to do it even on a fixed income. But once I had $200 saved, I thought, "Hm. I could pay this other bill with that." And then it was gone again.
Personally I use the -1000$ rule. I try to not to lose more than one thousand dollars per month, This way when I am able to turn things around I don't owe more than one a hundred thousand dollars. My point is we all have different challenges but this is good advice.
Paying off other bills for peace of mind-- I don't think it's a bad thing. But I think maintaining the stowing $20 with every paycheck away is what lets you take care of those other needs. And the hope is, with enough needs taken care of, you can have that $20 per paycheck grow into something more meaningful. So I hope you continue to stow away the $20, because it sounds like that system actually was working for you.
I aim to have 2k-3k Australian dollars in my bank account at all times. My savings account presently has 8.5k and will be around 10k soon. It won't ever be enough to survive on, but it'll be enough that without working, I will have several months to survive. If my present situation doesn't change, I should have 25k in savings within the nezt 12 months.
if you turn your phone calculator sideways and you use the x^y (x to the power of y) button you can also just put 1000$ * 1.08^10 to calculate how much your 1000$ will be worth in 10 years. This works at least on my phone
@@WhereWeRoll go try any of the online compound interest calculators online. Some even show you a graph with the difference between just the money you put in and the extra money generated just by the interest. It's not just multiplication. I'm sure there might be a clever mathematical way to approximate the real value, but the simpler way is to do it like mr Waiter here and iterate on each step (each year in this case). Also also, each time you deposit more money you are adding to the total amount, not multiplying it.
I love the title! It’s genius! I may wanna tweak it a little bit, “Having money FEELS better than spending money” since people are spending money to FEEL better.
I’ve been watching you since 2011 and it’s been wild to see the changes in your content but I’ve been enjoying it every step of the way. It’s enjoyable going back to the oldies but I love that it feels like we’ve grown together as your content has evolved throughout the years. Thanks for always being relatable and entertaining Craig.
My husband was on a strike for 2.5 months. He stayed home, worked on projects and cleaned the house. We spent as usual, paid bills and had little worries. We didn’t know if the strike was going to happen, we just been saving + investing out of natural habits for many many years.
Craig, love your quirky style. Status seeking kills financial freedom and that is what you really have. The peace that comes from knowing that your income could cease due to a multitude of reasons and you could carry on. Money is a tool which like a chainsaw deserves respect. Be well
I also like waiting for a sale on the product I've been thinking about for months 😅 like games on steam that wait forever on my wishlist until there's a sweet 50-70% discount 😂
When I started gaming, I added a bunch of games to my steam wishlist while playing the same 2-3 games, knowing I didn't need to buy a ton of games until I got tired of or finished the ones I already had. I quickly realized that games are on sales VERY often lmao, some of the games on my wishlist have a discount every 2 months i swear. So I'm not even tempted to jump right away on the occasion when I see one on sales because I know the sale will come back when I actually need it!
Thank you for addressing the importance of having a healthy mindset regarding money, as opposed to "being wealthy," which doesn't necessarily assure one's future financial security.
One of the best pieces of advice I've gotten is this: Don't skimp on anything between you and the ground, the rest is luxuries, so you can skimp on that. So, your shoes, favorite chair, the tires on your car, bed and the foundation of you house (If you have one). That will keep paying off in better back health, safer driving and less strain on your insurance policies. There are of course allways exceptions to any rules.
this is great advice mr. waiter!! also, a note on deals and sales: they’re ALWAYS advertised as an URGENT, ONE TIME ONLY opportunity. this is ALMOST NEVER the case. deals will come around again! you do not need to jump Right Now!!
You're right. Now with the magical powers of the worldwide internets we can even look up archived price changes on any goods. From that we can roughly estimate how much patience* is needed in case we want to use the next discount. by the time it comes we may realize the stuff is not even needed anymore. *patience = time = money also skill growth = better paying job. Always invest in yourself first
It’s surprising how people are only scratching the surface and don’t take the time to read The Comic Guide to Financial Bombs. Go out of the rabbit hole guys
@@uthmansheikhWhat? As long as you have the amount you're spending and pay it off every month, there's no debt. And if you have a card that rewards you with points you can translate to cash, you're coming out ahead. You're also building a good credit rating in the process.
@@eos_aurora Going into debt and then back out again isn’t avoiding debt; avoiding debt is avoiding debt e.g. using a debit card (with no overdraft facility) instead of a credit card.
Hello! I;m glad you are still making content. I have a lot to catch up on I love your content. I fell off durring a youtube purge because I was wasting to much time on youtube.
Good decision! I had a conversation with my father in law who was asking me how I avoid drinking 2+ beers a day and I told him I just don't buy it. My laziness after a day of work when I'm already home extremely outweighs my desire to have a drink. If it's in the fridge I'm gonna drink so just don't have it in the fridge.
I love this take. I've been saving like this for 2 years now, and next year, I'll have enough equity for a house. It's probably the most sustainable way to save money
I just want my money to keep growing faster than inflation. That’s why I’m looking for companies to invest my retirement savings of $250K I have sitting in the bank. I just don’t know the best strategies to use to make solid gains with steady cash flow.
I agree. Based on personal experience working with a financįal advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest in, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Annette Marie Holt” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Live on less than you make. If you can afford a maximum of $2000/month on rent, find a place for 1900 or below (consider moving towns if you have to). If you can afford a $30/month gym membership, get the one that's $15/month. Apply this everywhere except for food. On top of this, improve the skills you use at your job. It WILL lead to a higher pay cheque. Rinse and repeat. You will be amazed at how fast things can change
I think the biggest difference between your financial world and mine is that I don't make enough to afford my lifestyle initially. I don't have a lavish lifestyle (quite humble, actually), but when you use $1,000 as an example of putting money in the stock market, my reaction is "Wow, Craig has $1,000 that he doesn't have to spend on rent/groceries/mecidine/clothes/basics!" I am lucky most months if I have $20 for that...and that ain't enough to open an index fund. :)
It totally is enough; don't discount the value of putting $20 per paycheck away. There are services out there that allow you to invest smaller amounts and buy fractional shares. In about 2005, I was telling my best friend that he should open an account and put away $10 per week. He totally could have handled it, but he just didn't think it would amount to anything. Almost twenty years later, if he kept it up, and assuming he got a 10% rate of return, he would have almost $30k. That assumes he only did $10 per week, but once you get going, it becomes an addiction. You start wanting to cram everything you can into the market because you see it grow over time. Getting started is the biggest hurdle for many people, but once you do, you really get the savings bug.
Great point about having money that you don’t immediately need to use. That truly is a luxury. I will say that even though you can’t buy an index fund with $20 you can buy an ETF that tracks the s&p just like an index fund for a little as $1.
The amount isnt important. Its all relative. What is important is you're constantly saving for a rainy day, and making sure your savings at least match inflation. don't be chucking it in a regular account, make it work for you.
I believe the same and similar. It's funny that many people think I'm broke and lost because I don't follow status or keep up with others. It's good having money put aside for when it's needed. Index funds are great to put aside and forget about, except when putting more money in (annually).
I do a lot of the things you mentioned. One thing I do is express my money as how many months of living expenses it is. It's both comforting and reminds you that your money would eventually run out without continuing to work. Although I guess one day the lines between age and money will intersect....
I stated working a "real" job in 1989... I built an off grid home in 1997 with cash (yes is was ROUGH). Now with very little expenses (other than medical costs and taxes plus vicious inflation), I'm pretty comfortable. No wife, no kids, no insanely sized house. 3 paid off vehicles.... it could be a lot worse.
I have the same mindset. I just have less money right now. I'm sure some friend's would look at my account and be like "wow" but no. That's my emergency fund. I don't have any extra money. I don't see myself ever wanting to buy designer anything. I'm just not interested. The nicest thing I'll buy in the future is a nicer car and maybe a home.
The single best thing I own is a water bottle. The "Coloral" water bottle. I found it because I figured out exactly what and why I wanted it BEFORE even considering a purchase. I didn't find one thing, and get sold on it, or fall down a well comparing thousands of options. Because that invites confusion, overwhelm, and all the biases that our brains are susceptible to. I asked myself "why" - hydration. - not buying plastic water bottles - plastic waste bad - big water bottle annoying, not easy - not easy, don't actually do Then "what" - stainless steel. No rust, no shatter, cleans well, cleans easy, lasts a lifetime. - NO PLASTIC. Plastic breaks, is bad for you and the environment. Not in the cap, not in the lip of the bottle. I don't want to buy something designed to break. - not giant, water is heavy, and filling a big bottle takes time and decreases the pleasure of drinking it, and lowers the likelihood of actually using it as frequently as I want to use it. - not some weird, long, tapered neck BS bottle. If you have an "old-fashioned" glass it has the same amount of water as a tapered glass that looks twice as big. I don't need to look silly be hydrated. I searched until I stumbled across a small, French company that manufactures small batches of a bicycle water bottle from the 40's, and stocks specific locations worldwide. The time invested in finding that water bottle has saved me hundreds a year, for at least five years now. If you buy five plastic bottles a month from a gas station, that's like $15. The reality, is that if you do that much, it's likely more, because buying plastic disposable bottles is a habit. Get some gas, buy a bottle. So for someone else, that's hundreds a year. Let's say having it also stops me from stopping at fast food three times a month. That's like $45. So this bottle could theoretically save me its cost in ONE MONTH. In a year that's $720. Maybe it's nerdy, but in a world of unreliable stuff, having something tangible you can rely on is an amazing feeling No I am not paid by them, lol
I’m usually pretty stingy with my money, but I’m spending it now. New shoes, new electric razor, chest freezer. All that stuff goes up significantly in price in a months when those tariffs hit.
I appreciate that your $20 rule was $20 a pay period and not a day. A lot of saving methods say to say "however much" a day, and most people don't get paid every day. I never understood those methods.
One of my biggest monthly expenses is arts and crafts supplies because I’m always thinking of different projects I want to try. But most of them are poorly planned and executed so I don’t end up turning these supplies into an investment by creating anything of value. Even if I did I wouldn’t know how to go about managing my hobby in a legit business sort of way. A few years ago I took a whole year off from this hobby and I saved a bunch of money and for a minute I felt like I was finally in a place where I almost didn’t have to worry about money. But then I dove back in and spent it all now I’m in the same month-to-month pattern I was in before. Feels bad.
What iOS calculator was the one mentioned and used in the video for compound interest growth you did in your example? I’m also frustrated that Apple got rid of that continuous equal sign button feature
Thanks! 🥰 Loved the calculator demonstration for annual growth at 8%! 😅 “Look how much money (they) no longer have…” that’s wisdom. I’m going to go to the mall to people watch and say this to reprogram my thinking while shifting more funds into my Roth. 😊
Spending money is so fun though particularly for services and education. Thjngs like therapy, massages, physiotherapists, personal trainers, learning a skill from a poor PhD or masters student or having someone train you Martial arts at home is great and all are things I'd love to have. As long as it doesn't get you into debt
I do kind of the same thing. Start the month with enough money to get through the month (2k). Save/invest, pay utilities and food. If there's anything over 2k at the end of the month it also goes into savings. Been doing this for 6 months now and works great. Also always be tracking your expenses! And look at the funny numbers daily ofc, the "game".
Need to save £100,000 quickly so I can quit my job quicker or I'm in it till I'm 75. I opened a second bank account and move an amount of money into it every month. That's the money to buy food, pay for junk and whatever. My main bank account is then where all the important bills come from. And they all come out on the 1st of the month. This means by the 3rd or 4th my main bank account looks really really empty and it makes me not spend any of it.
Similar but easier if you have direct deposit: split your deposits into multiple accounts. There's no manual moving and when you do check in on the "hidden" account there's a nice surprise in there. My second account I say is my "fun" money, but I usually end up paying bills with it anyway. Though, I suppose that's the purpose if I'm paying off trinkets and gadgets I've bought. If you do this for an emergency fund, you should have a cap that if exceeded gets transferred to an investment account.
Max out that Roth IRA every year, don't have credit card debt, and take advantage of any savings / retirement (for ex 401k) if your work provides one. Great video, Craig!
I totally agree with this. Having more money set aside has dealt with a lot of the anxieties I still had 6 years ago and means I got through the pandemic and hopefully whatever is yet to come. It's not 'enough' but it's a whole lot better than it was.
Super agree with almost all of this! I'll add that the way I think about money has also necessarily evolved over time in a way that requires having more saved and invested. When I was just out of college and didn't have any money, you know, it was kinda okay because I had the realistic possibility of getting a new job that paid really well, or falling back on parents/family if something went wrong. Now as a middle aged person, this is it as far as my income goes. I'm not plausibly going to change careers and bring in $50K-$100K more per year. Likewise, I don't have parents/family I can fall back on anymore. Fewer options and possibilities means I've got to be a lot more careful with what I've got.
Financial security is the ultimate luxury or at least the most important one, because without that, it’s hard to enjoy any of the other ones that money can buy.
Me too, I think of two emergiencies happing at the same tome. For example losing one's job and needing a root canal or car need repair while in that situatiin. So, I am in the process of planning accordingly.
Future value of compounding interest formula. For 8%, do 1.08 ^ 20. This is 8% growth compounding for 20 years. Take that number and multiply by what you started with. In this case that’s 4.66 x what you started with
Yeah...I need to do much better with saving money. I'm improving compared to a few years ago. Setting up automatic alerts for my accounts has definitely helped.
I've never been great with money (the undiagnosed ADHD didn't help) and then I got long covid and was on government aid for about a year. But my husband and I are doing better! We were able to buy a house with help from my dad which actually saves us money because rent is ridiculously high. My husband just negotiated a raise at work and I'm getting an education in a different field to also be able to earn a bit more in the future. (I was a classical singer but the pandemic and long covid screwed that up unfortunately). But most importantly we are actually able to save now, which feels great. Our car just needed some pretty expensive repairs and yeah it sucks, but the fact that we just had that money in a savings account feels amazing. I've always felt intimidated by investing, but now that we have a little bit of money we don't immediately need, it feels like it might be worth looking into.
I have been putting 10% away for 30+ years. Yes, I've missed out on a few things, but I can't really think of any of those that would have been important. I have a house a car (not new but working) and now I have a pile that should out last me as long as I want to keep doing what I'm doing just not any of that work stuff.
Love your way!!!!! And you’re funny. My Dad taught us safe investments and good quality of life with few needs. Feeling safe about money is so much better than flashing money. My dad would walk into a car dealership looking like he couldn’t afford it, and then pay cash. 🤪
Really solid money advice throughout. It's really hard to convince people who DO care about showing off their wealth, that's something they'll need to work on intentionally and probably slowly over time, but the rest of these are small changes that are accessible for everyone to start asap.
If money is a feeling it can be acquired without money. But I do understand the backing of having money saved does enable comfort which allows to take risk
I save more in a year on nearly 1/4 the income of my US peers simply by living in Peru. I own an apartment at age 35, and can easily save $10-15k annually on earnings between $30-40k a year. When you don't need a car, or natural gas, or AC, you save a ton. When your rent is relatively low and basic needs like food and energy are dirt cheap, you suddenly have lots of free income. The biggest drag on your savings potential is high cost of living.
Your 20 dollar video sent me down a path of taking care of my future a lot more than before. I immediately set up a monthly 20 dollar transfer to savings, but since I am getting on in years, that won't be enough, so I eventually decided to do what you mentioned in this video: keep a reasonable monthly expense amount in checking, and move everything else to savings. So future me thanks you very much!!! (I still have not explored stocks yet) I work freelance, so I need to keep a nice bit of padding in my checking account to make sure all bills get paid even on slow months, but in general, I put as much as I can in savings manually every month (with the automatic 20 dollar thing still happening in commemoration of your channel!) My basic philosophy now is to do as much fun free stuff as possible. Go on walks, reread books on my bookshelf, etc. etc. It is amazing how fun life can be when you just put your money away, stick to the necessities, and spend most of your time doing free or really inexpensive stuff.
My wife and I have worked retail jobs for years. We live within our means. In a few years, we will actually get to retire. House paid for, no debt, savings. All this working "normal" jobs. We love our boring life.
Great advice! I've been following a shockingly similar method for about the last 25 years or so and I'm in the same spot as you. It's been maybe 20 years since I've had a money "worry" and I used to have them several times a month.
I agree totally. I get icky feelings when I get attention for things I have. I do not buy items to impress others. That’s hideous to me. I don’t want or need the attention. And I’m not fond of that characteristic in others. And it even mildly embarrasses me when I get attention for accomplishments. I’m glad I’m built that way.
I agree with your philosophy on saving and i have done someting amazingly similar. But, yes there is a but, at being 70, and the change in administration i took a drastic step and took all my money out of stocks and put them into a general securities fund. I am legitimately scared of the coming months and 4 years. And at my age i dont have 20 or 30 years to recover losing all i have saved.
No kidding. I did the opposite. I upped my stock investments after the election. I'm up 3.4% so far, in less than 30 days. normally, it takes 6-8 months for that kind of increase.
The current administration brought us to the brink of ww3 and you're worried about the anti-war president... Go out and touch some grass. You will be FINE.
Try Rocket Money for free: RocketMoney.com/wheezywaiter #rocketmoney #personalfinance
middle rung youtuber with 1 mill subs lol, then iam a non existence youtuber with 2 k
Warning: whenever I do a video about money a LOT of manipulative comments creep to the top. They seem like people legitimately talking about a money issue, but then have abnormally large amounts of likes and replies and then one reply will advertise some financial advisor. Beware.
Yeah I hate those 'financial advisor' bots
Or do I?
This happens on every financial channel. It bothers me that some otherwise respectable channels don’t take the bots’ comments down, even after months, in some cases. Thank you acknowledging them. I wish RUclips itself would crack down on these bots.
You can Delete the Bot comments from your end.
I can't stand those and then they get their buddies to reply and make it look legit for less aware folks. I try to comment that it's a scam when I see them. I encourage any of you to do the same. Hopefully enough people calling it out will save a unknowing soul some heartache
@@lindatodd4411 I do! But I can't sit here all day doing it.
I was on holiday with my dad in spain last year when he fell and broke a hip. Being able to just get a hotel near the hospital, and being able to miss my flight home and book a new flight without worrying about money was amazing. There was so much to stress over already, I'm very happy that i didn't need to worry about money as well.
This is real wealth.
In order to go to the hospital, in Spain, you don't need wealth, they have free health even for tourists.
@@CogitoBcnthe hotel and the flights
Getting a LOT of those “this guy looks like Vsauce” comments as well as “you’re still making videos!!!”
This is good. It means I hit the algo.
Yes! This is the first video of yours that I’ve seen in 10 years! Missed you but I’m glad to see you’re still doing this!
Woo hoo! I hate when a beloved channel stops automatically showing up in my feed
Who else read this and thought "Vsauce is still making videos?" 😂
Wheezer you are literally Michael wdym
yeah, I've never come across your videos, but I liked it...we are a lot alike, so I guess I'm doing something right.
The ability to postpone gratification is the most distinct trait to indicate the capability to build wealth.
It is why 80% of those who are wealthy inherited it. They did not earn it so have no need to delay anything. There is no gratification in not living a comfortable life once your death is paid for.
Maybe - I doubt it.
A BIG FAT INHERITANCE is the fastest way to build wealth. Whether you can hang on to it is another story.
Not a distinct trait. Money slips through my hands faster the less I have of it. As soon as I had a steady job that was more than 2x my rent, I became a budgeting and saving wizard. Funny how that works.
And by the way, I didn't get the job by delaying gratification. I had lucky connections.
Your right that postpone gratification the most distinct trait to indicate the capability to build wealth.but what if I do not care about material things. I just don't spend much because i have no desire to spend money on materialistic things because I do not anything.
@@SophiaAphrodite Most people who are wealthy did NOT inherit it. Many people who inherit money end up broke
I’ve been watching a lot of different budgeting channels for about two years now, and the best advice I’ve seen is to budget for your fun spending. Telling yourself you have, say, $100 a month to spend on literally whatever you want really helps to be able to save. It’s like giving yourself an allowance like you’re a child again and we’re forced to save the little bit of money you got 😂
It's like eating healthy. It has to be healthy but not to the extent that it isn't tolerable, and everyone has a different level of discipline they can tolerate.
That just guarantees that you will squander at least $100/MTH. It doesn't save squat.
Pissing away $100/MTH every month results in a well stocked abandoned storage unit.
Stop buying shirts.
Great advice! The best thing I ever did for myself was plan my retirement ten years beforehand. I tried to picture every REALISTIC scenario of something bad happening (blown furnace, water heater, heat pump, outrageous oil prices) and created individual savings accounts. Each paycheck a small slice of money automatically went into each savings account.
When I retired this year my house and car had been paid off already and all of my “oh sh*t!” savings accounts were fully funded. As a result, after bills are paid, I still have 60% of my pension income remaining. The incredible feeling of relief at not having to worry is amazing.
@@gpdoyonare you from Europe or USA? Also when did you retire? 60?
@ I am from the USA. I retired January 2924, age 60.
is this Vsauce's alter ego?
Vsauce, Michael there!!
I clicked thinking it was him 😂
@@MikhailKoslowski Wheezy, Craig here!
i clicked the video just to search this comment
lol
No, VSauce is WheezyWaiters alter ego
15 minutes of disclaimers because Craig is nice + people can't understand that they are not the only people in the world. Love you Craig :)
Everything you described is exactly how I approach my finances and I am amazingly blessed to be in the same situation as you (except I have more hair on my head and less on my chin). This means I didn’t learn much, but I greatly enjoyed feeling validated. I guess I learned that I enjoy feeling validated. Thanks for that.
I hate that in the U.S. a medical catastrophe can pretty much kill all your savings and leave you with nothing. If we had access to universal health care, the nation would have a lot fewer destitute people. And we would be less likely to lose everything we worked for because we got sick or had an accident.
Welcome to capitalism!
If you are not Medicare age; consider medical care in Mexico, due diligence implied.
Not a bad approach, but this won’t save you a penny. Health care isn’t free so you will pay for it in taxes. If the government controls costs, you will get lower quality or less healthcare value. Admittedly, do we need to spend $500,000 on a 91 year old cancer patient? Answer now and then again when you are 91!
I guess this doesn’t apply to billionaires. Unless they get some new disease and spend all their money sponsoring research for it lmao
@@samuelbonacorsi2048 IMHO, the discussion shouldn't be around the solution, but what exactly the problem is. US pays the most for some of the worst health outcomes. I don't care what the solution is, but it needs to be fixed. I refuse to accept that we just can't do any better when literally every other developed country does better than us.
I have 2 cousins, brothers, and the older brother, he was in one of those sleazy financial 'bro' jobs, he was making about $400k a year for a decade or so, bought cars, clothes, all that (probably spent an inordinate amount on 'talcum powder' too, you can picture him I'm sure). He lost his job after doing it for years - I think because of a tax thing - and he had........nothing. He hadn't saved any, I think his cars were leased, and so on.
His brother, works a dead-end job and isn't the fizziest drink in the fridge, earns very little, but works hard, spends little - this isn't a parable, this is real - he's a good guy, and now, his older brother, kinda mooches off him. Not always, he doesn't live with him, but at any family event, the brother who is diligent and frugal pays for food and drink and hotel rooms and such for his spend-thrift brother.
I don't really know where I'm going with this, it just pisses me off.
It's the parable of the ant and the grasshopper.
It’s financial offensive skills Vs defensive
Some good people don't mind helping others. That works as long as the good person isn't being abused. You gotta realise some people are easily brainwashed with materialism and have blind spots in their IQ. It's not always their fault if they ar born a bit dim and unwise. Many good people don't want to see their annoying siblings on the street poverty stricken and in despair so they 'carry' them to a certain extent.
@@jfree2737 ... And when the winter came, the grasshopper hopped into his sports car and drove to Florida. And the ant got stepped on :)
ruclips.net/video/pJAYsKjJtM4/видео.html
I love these money videos because I hate discussing money but you make it palatable.
I feel that! Some FA’s scare the crap out of me.
I find lists of things I'd like to buy pretty useful. I have hundreds of books and ebooks I've never read, now I just add any new ones to a list and act as if I have them. Once they're on the list the rule is I can buy it the moment I'm ready to start reading. Same goes for hobby stuff, video games, tools, clothes and a whole bunch of other stuff. I have a fortune worth of items I can use at a moments notice. I just haven't bought them yet.
This is brilliant -- I am adopting the same approach from now on! I have so many books that I have not read yet, but kept getting more -- will get a list going :)
Yeah, you can't become a miser. Saving money is great, and there are usually some easy cuts to be made that don't negatively affect, and may actually improve your life. For me cutting fast-food was a big savings, and when I make food at home it is usually healthier.
Hahaha love the humor in this video!
I took the same conservative approach for the past 20 years, once I realized I cannot earn much- focused on health and raising my son right (the cheap things in life).
Now I’m in my mid 40s and have some old medical bills hanging over my head but it’s nothing considering I’m in better health than many of my peers, have avoided passing the multi-generational trauma on to my kid, and now all I have to do is earn money and enjoy life!
I have a Blu-ray, Comic Book, and Video Game addiction. But I only allow myself to buy things on sale, never full price. I can't believe people are paying $70 for video games when you can just wait a few months.
Maybe try to cut out the blu-rays. The other things are hard to access other than buying.
I buy most of my games from car boot sales for usually around $2.50 a game, same with dvds buying them for only about 50 cents each.
Used to think the same. Unfortunately, this time has ended. At this point you have to wait for years for AAA games to down in price. Not impossible given just how much stuff is out there, but if you want to be in on a hype the better alternative is to prioritize and just buy less.
Once you have enough wealth to not worry about yourself, you're able to be generous. Even if it's for selfish reasons.
Being generous with money is one of the best virtues.
being generous for selfish reasons is a win win situation, as long as you aren't trying to use money to be a degenerate...
We sponsored 17 families this Christmas at our neighborhood center for Christmas-there were 57 children in all. Driving away I seriously felt like Scrooge after he woke up: Light as a feather, I am as happy as an angel, I am as merry as a schoolboy. I am as giddy as a drunken man.
It was the happiest I have been in a long time. I heard someone say If you don't think money can make you happy, you just haven't given enough away yet.
That math equation demonstration...I used to do the exact same thing, EXCEPT, now I figured out an easier way. So, using your example and, say...
10 years:
1000*1.08^10
Or 15 years:
1000*1.08^15
The power of exponents! Hope this helps you too.
Edit - I just watched the part where you like to see it grow using the equals sign. That's a good point. I'm with you.
There was a graph I saw onces of how much people earn vs how much they spend and mostly the more you have, the more you spend and the same amount you have left in the end. Its also how people that suddenly get a lot of money usually change their lifestyle, but then run out and try to keep the lifestyle going, ending badly
I could think of nothing more horrifying than having more money than i know what to do with, living a lavish lifestyle temporarily, then have to go back to a 9 to 5 job and be poor again. no spankyou. Slow and steady wins the race.
I appreciate the video and trying to help. I used the $20 rule. I was able to do it even on a fixed income. But once I had $200 saved, I thought, "Hm. I could pay this other bill with that." And then it was gone again.
Personally I use the -1000$ rule. I try to not to lose more than one thousand dollars per month, This way when I am able to turn things around I don't owe more than one a hundred thousand dollars. My point is we all have different challenges but this is good advice.
Paying off other bills for peace of mind-- I don't think it's a bad thing. But I think maintaining the stowing $20 with every paycheck away is what lets you take care of those other needs. And the hope is, with enough needs taken care of, you can have that $20 per paycheck grow into something more meaningful. So I hope you continue to stow away the $20, because it sounds like that system actually was working for you.
Saving can only really start when you’re debt-free. Paying off debts is a good idea
I aim to have 2k-3k Australian dollars in my bank account at all times.
My savings account presently has 8.5k and will be around 10k soon.
It won't ever be enough to survive on, but it'll be enough that without working, I will have several months to survive. If my present situation doesn't change, I should have 25k in savings within the nezt 12 months.
if you turn your phone calculator sideways and you use the x^y (x to the power of y) button you can also just put 1000$ * 1.08^10 to calculate how much your 1000$ will be worth in 10 years. This works at least on my phone
!!! Turn it sideways for more functions !!! Thanks for that, I had no idea!
You'll be missing the compounding factor that way
@@the-mushI don’t think that’s right. Multiplication is communitive and exponents are just repeated multiplication.
@@WhereWeRoll go try any of the online compound interest calculators online. Some even show you a graph with the difference between just the money you put in and the extra money generated just by the interest. It's not just multiplication.
I'm sure there might be a clever mathematical way to approximate the real value, but the simpler way is to do it like mr Waiter here and iterate on each step (each year in this case).
Also also, each time you deposit more money you are adding to the total amount, not multiplying it.
I think you guys are missing a phone update
Best money advice I can give is to read book called Untold Business masterclass.Thank me later
Nice book man ive read it
I love the title! It’s genius! I may wanna tweak it a little bit, “Having money FEELS better than spending money” since people are spending money to FEEL better.
Listening to this while I budget
I’ve been watching you since 2011 and it’s been wild to see the changes in your content but I’ve been enjoying it every step of the way.
It’s enjoyable going back to the oldies but I love that it feels like we’ve grown together as your content has evolved throughout the years. Thanks for always being relatable and entertaining Craig.
I still remember the clones and the Whale who lived below him :)
been saving a ton of money since the last video you put out thanks a ton
My husband was on a strike for 2.5 months. He stayed home, worked on projects and cleaned the house. We spent as usual, paid bills and had little worries. We didn’t know if the strike was going to happen, we just been saving + investing out of natural habits for many many years.
Craig, love your quirky style. Status seeking kills financial freedom and that is what you really have. The peace that comes from knowing that your income could cease due to a multitude of reasons and you could carry on. Money is a tool which like a chainsaw deserves respect. Be well
I also like waiting for a sale on the product I've been thinking about for months 😅
like games on steam that wait forever on my wishlist until there's a sweet 50-70% discount 😂
When I started gaming, I added a bunch of games to my steam wishlist while playing the same 2-3 games, knowing I didn't need to buy a ton of games until I got tired of or finished the ones I already had. I quickly realized that games are on sales VERY often lmao, some of the games on my wishlist have a discount every 2 months i swear. So I'm not even tempted to jump right away on the occasion when I see one on sales because I know the sale will come back when I actually need it!
Thank you for addressing the importance of having a healthy mindset regarding money, as opposed to "being wealthy," which doesn't necessarily assure one's future financial security.
One of the best pieces of advice I've gotten is this: Don't skimp on anything between you and the ground, the rest is luxuries, so you can skimp on that. So, your shoes, favorite chair, the tires on your car, bed and the foundation of you house (If you have one). That will keep paying off in better back health, safer driving and less strain on your insurance policies.
There are of course allways exceptions to any rules.
Your status philosophy is the same way I feel about going to firework shows.
Whooooosssshhhh........ ✨$500✨
this is great advice mr. waiter!! also, a note on deals and sales: they’re ALWAYS advertised as an URGENT, ONE TIME ONLY opportunity. this is ALMOST NEVER the case. deals will come around again! you do not need to jump Right Now!!
You're right. Now with the magical powers of the worldwide internets we can even look up archived price changes on any goods. From that we can roughly estimate how much patience* is needed in case we want to use the next discount. by the time it comes we may realize the stuff is not even needed anymore.
*patience = time = money
also skill growth = better paying job. Always invest in yourself first
Most sales come around every holiday! and if nothing else, you know black Friday will happen yearly.
It’s surprising how people are only scratching the surface and don’t take the time to read The Comic Guide to Financial Bombs. Go out of the rabbit hole guys
I’m a Spaniard living in the UK and love your channel. I like your approach to money, I’m quite frugal too. Thanks for the content.
I’m right there with you. It’s a lifestyle. Super chill and resisting all those companies trying to get into your pockets.
rule number one is avoid debt and every month pay credit card in full
But using a credit card is not avoiding debt.
@@uthmansheikhWhat? As long as you have the amount you're spending and pay it off every month, there's no debt. And if you have a card that rewards you with points you can translate to cash, you're coming out ahead. You're also building a good credit rating in the process.
@@uthmansheikh it is avoiding debt if you pay it off and never accrue debt.
@@eos_aurora Going into debt and then back out again isn’t avoiding debt; avoiding debt is avoiding debt e.g. using a debit card (with no overdraft facility) instead of a credit card.
@@uthmansheikh if you pay every month, you never go into debt
I’m 25 this year, been loving your channel Since I was 19, thanks for being here for us all wheezy
Hello! I;m glad you are still making content. I have a lot to catch up on I love your content. I fell off durring a youtube purge because I was wasting to much time on youtube.
I just realized i spend around 10k on alcohol every year. That’s wild. So I'm done. Today is my first day sober.
Good decision! I had a conversation with my father in law who was asking me how I avoid drinking 2+ beers a day and I told him I just don't buy it. My laziness after a day of work when I'm already home extremely outweighs my desire to have a drink. If it's in the fridge I'm gonna drink so just don't have it in the fridge.
I love this take. I've been saving like this for 2 years now, and next year, I'll have enough equity for a house. It's probably the most sustainable way to save money
We have the same goals and money habits. It feels very comfortable. 🥰
I just want my money to keep growing faster than inflation. That’s why I’m looking for companies to invest my retirement savings of $250K I have sitting in the bank. I just don’t know the best strategies to use to make solid gains with steady cash flow.
Pick quality stocks and keep track of them. If that feels too complicated, consider hiring a wealth manager to grow your money. That's what I do.
I agree. Based on personal experience working with a financįal advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest in, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Annette Marie Holt” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I just googled her now and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Live on less than you make. If you can afford a maximum of $2000/month on rent, find a place for 1900 or below (consider moving towns if you have to). If you can afford a $30/month gym membership, get the one that's $15/month. Apply this everywhere except for food.
On top of this, improve the skills you use at your job. It WILL lead to a higher pay cheque.
Rinse and repeat. You will be amazed at how fast things can change
I think the biggest difference between your financial world and mine is that I don't make enough to afford my lifestyle initially. I don't have a lavish lifestyle (quite humble, actually), but when you use $1,000 as an example of putting money in the stock market, my reaction is "Wow, Craig has $1,000 that he doesn't have to spend on rent/groceries/mecidine/clothes/basics!" I am lucky most months if I have $20 for that...and that ain't enough to open an index fund. :)
It totally is enough; don't discount the value of putting $20 per paycheck away. There are services out there that allow you to invest smaller amounts and buy fractional shares.
In about 2005, I was telling my best friend that he should open an account and put away $10 per week. He totally could have handled it, but he just didn't think it would amount to anything.
Almost twenty years later, if he kept it up, and assuming he got a 10% rate of return, he would have almost $30k. That assumes he only did $10 per week, but once you get going, it becomes an addiction. You start wanting to cram everything you can into the market because you see it grow over time.
Getting started is the biggest hurdle for many people, but once you do, you really get the savings bug.
Right. Don’t feel bad about not following advice that is for someone in a different situation.
Great point about having money that you don’t immediately need to use. That truly is a luxury. I will say that even though you can’t buy an index fund with $20 you can buy an ETF that tracks the s&p just like an index fund for a little as $1.
You can absolutely invest $20 in an index fund, many brokerages allow fractional shares :)
The amount isnt important. Its all relative. What is important is you're constantly saving for a rainy day, and making sure your savings at least match inflation. don't be chucking it in a regular account, make it work for you.
I believe the same and similar. It's funny that many people think I'm broke and lost because I don't follow status or keep up with others. It's good having money put aside for when it's needed. Index funds are great to put aside and forget about, except when putting more money in (annually).
I do a lot of the things you mentioned. One thing I do is express my money as how many months of living expenses it is. It's both comforting and reminds you that your money would eventually run out without continuing to work. Although I guess one day the lines between age and money will intersect....
Me taking advice from Vsauce looking dude
Or do you?
I stated working a "real" job in 1989... I built an off grid home in 1997 with cash (yes is was ROUGH). Now with very little expenses (other than medical costs and taxes plus vicious inflation), I'm pretty comfortable. No wife, no kids, no insanely sized house. 3 paid off vehicles.... it could be a lot worse.
I have the same mindset. I just have less money right now. I'm sure some friend's would look at my account and be like "wow" but no. That's my emergency fund. I don't have any extra money. I don't see myself ever wanting to buy designer anything. I'm just not interested. The nicest thing I'll buy in the future is a nicer car and maybe a home.
The single best thing I own is a water bottle.
The "Coloral" water bottle. I found it because I figured out exactly what and why I wanted it BEFORE even considering a purchase.
I didn't find one thing, and get sold on it, or fall down a well comparing thousands of options. Because that invites confusion, overwhelm, and all the biases that our brains are susceptible to.
I asked myself "why"
- hydration.
- not buying plastic water bottles
- plastic waste bad
- big water bottle annoying, not easy
- not easy, don't actually do
Then "what"
- stainless steel. No rust, no shatter, cleans well, cleans easy, lasts a lifetime.
- NO PLASTIC. Plastic breaks, is bad for you and the environment. Not in the cap, not in the lip of the bottle. I don't want to buy something designed to break.
- not giant, water is heavy, and filling a big bottle takes time and decreases the pleasure of drinking it, and lowers the likelihood of actually using it as frequently as I want to use it.
- not some weird, long, tapered neck BS bottle. If you have an "old-fashioned" glass it has the same amount of water as a tapered glass that looks twice as big. I don't need to look silly be hydrated.
I searched until I stumbled across a small, French company that manufactures small batches of a bicycle water bottle from the 40's, and stocks specific locations worldwide.
The time invested in finding that water bottle has saved me hundreds a year, for at least five years now.
If you buy five plastic bottles a month from a gas station, that's like $15. The reality, is that if you do that much, it's likely more, because buying plastic disposable bottles is a habit. Get some gas, buy a bottle. So for someone else, that's hundreds a year. Let's say having it also stops me from stopping at fast food three times a month. That's like $45. So this bottle could theoretically save me its cost in ONE MONTH. In a year that's $720.
Maybe it's nerdy, but in a world of unreliable stuff, having something tangible you can rely on is an amazing feeling
No I am not paid by them, lol
I’m usually pretty stingy with my money, but I’m spending it now. New shoes, new electric razor, chest freezer. All that stuff goes up significantly in price in a months when those tariffs hit.
Buy a passport to another country and never look back at that dumpster fire of a pretend democracy.
I appreciate that your $20 rule was $20 a pay period and not a day. A lot of saving methods say to say "however much" a day, and most people don't get paid every day. I never understood those methods.
One of my biggest monthly expenses is arts and crafts supplies because I’m always thinking of different projects I want to try. But most of them are poorly planned and executed so I don’t end up turning these supplies into an investment by creating anything of value. Even if I did I wouldn’t know how to go about managing my hobby in a legit business sort of way. A few years ago I took a whole year off from this hobby and I saved a bunch of money and for a minute I felt like I was finally in a place where I almost didn’t have to worry about money. But then I dove back in and spent it all now I’m in the same month-to-month pattern I was in before. Feels bad.
Don't give up. progress involves constantly re training your behaviors.
What iOS calculator was the one mentioned and used in the video for compound interest growth you did in your example? I’m also frustrated that Apple got rid of that continuous equal sign button feature
"Saving pay for healthcare" LOL from Norway. Seriously, move over the pond! 😻
A lot of us in the US would like to, not sure it’s that easy…
Do you want to fake marry me?
Same for here in Canada 😭 can’t imagine having to save for healthcare
How do you guys feel about immigrants though? Because a lot of us really would like to move away from this clown show.
Ya have fun with that 65% tax.
I love how you made the basic Time Value of Money equations so accessible with regular people math tools!
Thanks! 🥰 Loved the calculator demonstration for annual growth at 8%! 😅 “Look how much money (they) no longer have…” that’s wisdom. I’m going to go to the mall to people watch and say this to reprogram my thinking while shifting more funds into my Roth. 😊
Spending money is so fun though particularly for services and education. Thjngs like therapy, massages, physiotherapists, personal trainers, learning a skill from a poor PhD or masters student or having someone train you Martial arts at home is great and all are things I'd love to have.
As long as it doesn't get you into debt
Having a fancy car does say “look how much money I have” but saying “look how much money I don’t have anymore.” That was amazing.
I do kind of the same thing. Start the month with enough money to get through the month (2k). Save/invest, pay utilities and food. If there's anything over 2k at the end of the month it also goes into savings. Been doing this for 6 months now and works great. Also always be tracking your expenses! And look at the funny numbers daily ofc, the "game".
Dude - you are awesome😂😂😂. The more you save the harder it is to spend, isn’t it 😊?
Need to save £100,000 quickly so I can quit my job quicker or I'm in it till I'm 75. I opened a second bank account and move an amount of money into it every month. That's the money to buy food, pay for junk and whatever. My main bank account is then where all the important bills come from. And they all come out on the 1st of the month. This means by the 3rd or 4th my main bank account looks really really empty and it makes me not spend any of it.
Similar but easier if you have direct deposit: split your deposits into multiple accounts. There's no manual moving and when you do check in on the "hidden" account there's a nice surprise in there. My second account I say is my "fun" money, but I usually end up paying bills with it anyway. Though, I suppose that's the purpose if I'm paying off trinkets and gadgets I've bought. If you do this for an emergency fund, you should have a cap that if exceeded gets transferred to an investment account.
@@ChristopherCurtis every year you should bump your emergency fund up to account for inflation.
Max out that Roth IRA every year, don't have credit card debt, and take advantage of any savings / retirement (for ex 401k) if your work provides one.
Great video, Craig!
I totally agree with this. Having more money set aside has dealt with a lot of the anxieties I still had 6 years ago and means I got through the pandemic and hopefully whatever is yet to come. It's not 'enough' but it's a whole lot better than it was.
rt saved $ is more valueable then anything you can buy
Super agree with almost all of this! I'll add that the way I think about money has also necessarily evolved over time in a way that requires having more saved and invested. When I was just out of college and didn't have any money, you know, it was kinda okay because I had the realistic possibility of getting a new job that paid really well, or falling back on parents/family if something went wrong. Now as a middle aged person, this is it as far as my income goes. I'm not plausibly going to change careers and bring in $50K-$100K more per year. Likewise, I don't have parents/family I can fall back on anymore. Fewer options and possibilities means I've got to be a lot more careful with what I've got.
Financial security is the ultimate luxury or at least the most important one, because without that, it’s hard to enjoy any of the other ones that money can buy.
Me too, I think of two emergiencies happing at the same tome. For example losing one's job and needing a root canal or car need repair while in that situatiin. So, I am in the process of planning accordingly.
Imagine saving so well that a car wreck or a friend's destination wedding isn’t even a stressor! This is adulting goals right here. 💯
I just ran across this channel and you think just like me since I was 20 and I am 80 and it has worked for me so far.
Dude, you're my soulmate. I feel every word, in fact I live every word, not many people will get it. Thank you.
Future value of compounding interest formula.
For 8%, do 1.08 ^ 20.
This is 8% growth compounding for 20 years. Take that number and multiply by what you started with. In this case that’s 4.66 x what you started with
Yeah...I need to do much better with saving money. I'm improving compared to a few years ago. Setting up automatic alerts for my accounts has definitely helped.
What brokerage do you use and how do you like it?
E*Trade. No complaints but I haven’t used many of them.
I've never been great with money (the undiagnosed ADHD didn't help) and then I got long covid and was on government aid for about a year. But my husband and I are doing better! We were able to buy a house with help from my dad which actually saves us money because rent is ridiculously high. My husband just negotiated a raise at work and I'm getting an education in a different field to also be able to earn a bit more in the future. (I was a classical singer but the pandemic and long covid screwed that up unfortunately).
But most importantly we are actually able to save now, which feels great. Our car just needed some pretty expensive repairs and yeah it sucks, but the fact that we just had that money in a savings account feels amazing.
I've always felt intimidated by investing, but now that we have a little bit of money we don't immediately need, it feels like it might be worth looking into.
Buy index fund(s).
fart in a jar
I have been putting 10% away for 30+ years. Yes, I've missed out on a few things, but I can't really think of any of those that would have been important. I have a house a car (not new but working) and now I have a pile that should out last me as long as I want to keep doing what I'm doing just not any of that work stuff.
Future money = Money x 1,08 ^ Years. In general the amount of money doubles every ten years.
Bro this is the first of your videos I ever watch and you’re literally me in every aspect hahah
I’m glad you mentioned the iPhone’s recent calculator update and how it messed up the equal sign function. 🤣🤣 It’s so maddening.
Can vouch for this as it's what I've done over the decades.
Love your way!!!!! And you’re funny. My Dad taught us safe investments and good quality of life with few needs. Feeling safe about money is so much better than flashing money. My dad would walk into a car dealership looking like he couldn’t afford it, and then pay cash. 🤪
Really solid money advice throughout. It's really hard to convince people who DO care about showing off their wealth, that's something they'll need to work on intentionally and probably slowly over time, but the rest of these are small changes that are accessible for everyone to start asap.
I first time I received dividends from my stock I was surprised! It’s great to save.
100% agree that the lack of an equals function on the default calculator sucks!
I agree with you accept I diversify, precious metal,cyrpto, real estate, cashflow,cash.
I wanna be more like you. Thank you for helping us think through these things.
For the calculator, now you can use the xY formula where you can put the years as an Y. So you can say 10.000 * 1,08 xY 20 = 46.600
Yep! I like to say that having a safety net "makes a broken leg feel like a bee sting."
If money is a feeling it can be acquired without money. But I do understand the backing of having money saved does enable comfort which allows to take risk
Your first sentence is a great quote, thanks. I'll be reflecting on it!
I like your shirt, Craig...😊
@11:20 "It was a brief lapse in judgement." LMAO🤣😅
I save more in a year on nearly 1/4 the income of my US peers simply by living in Peru. I own an apartment at age 35, and can easily save $10-15k annually on earnings between $30-40k a year. When you don't need a car, or natural gas, or AC, you save a ton. When your rent is relatively low and basic needs like food and energy are dirt cheap, you suddenly have lots of free income. The biggest drag on your savings potential is high cost of living.
Your 20 dollar video sent me down a path of taking care of my future a lot more than before. I immediately set up a monthly 20 dollar transfer to savings, but since I am getting on in years, that won't be enough, so I eventually decided to do what you mentioned in this video: keep a reasonable monthly expense amount in checking, and move everything else to savings. So future me thanks you very much!!! (I still have not explored stocks yet)
I work freelance, so I need to keep a nice bit of padding in my checking account to make sure all bills get paid even on slow months, but in general, I put as much as I can in savings manually every month (with the automatic 20 dollar thing still happening in commemoration of your channel!)
My basic philosophy now is to do as much fun free stuff as possible. Go on walks, reread books on my bookshelf, etc. etc. It is amazing how fun life can be when you just put your money away, stick to the necessities, and spend most of your time doing free or really inexpensive stuff.
My wife and I have worked retail jobs for years. We live within our means. In a few years, we will actually get to retire. House paid for, no debt, savings. All this working "normal" jobs. We love our boring life.
I needed this video! Thank you Craig ❤
Thank you for this video!
Great advice! I've been following a shockingly similar method for about the last 25 years or so and I'm in the same spot as you. It's been maybe 20 years since I've had a money "worry" and I used to have them several times a month.
I agree totally. I get icky feelings when I get attention for things I have. I do not buy items to impress others. That’s hideous to me. I don’t want or need the attention. And I’m not fond of that characteristic in others. And it even mildly embarrasses me when I get attention for accomplishments. I’m glad I’m built that way.
I agree with your philosophy on saving and i have done someting amazingly similar. But, yes there is a but, at being 70, and the change in administration i took a drastic step and took all my money out of stocks and put them into a general securities fund. I am legitimately scared of the coming months and 4 years. And at my age i dont have 20 or 30 years to recover losing all i have saved.
No kidding. I did the opposite. I upped my stock investments after the election. I'm up 3.4% so far, in less than 30 days. normally, it takes 6-8 months for that kind of increase.
I have the money but not the wants. ...freedom
The current administration brought us to the brink of ww3 and you're worried about the anti-war president...
Go out and touch some grass. You will be FINE.
I needed to hear this. Thanks