You Can't Budget Yourself Out Of Poverty Or Massive Debt
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- čas přidán 21. 06. 2024
- Note: I don’t know this creator, I am critiquing this particular advice that is repeated far too often, not them. You can’t budget your way out of poverty or out of massive debt. Budgeting is important for many reasons (like not increasing your debt even further), but budgeting alone can only do so much.
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this is why, whenever the higher ups want to find out what will motivate employees, I tell them "a raise"
That only works to a point. Most raises are around 2% which does not outpace inflation. It is why they say you should change jobs every 5 years. You make more money by doing so.
"What if we get you all a pizza lunch, or for Christmas you can all have t-shirts with the company logo?"
@@SophiaAphrodite Pfft. It works when it's an Actual raise. Ya know, like CEO's get.
Yeah, I was once talking to a higher up in the hierarchy colleague, with him saying: Oh, you gotta motivate people, give them more responsibility, let them *do* more of the stuff I do. What, so you can lean back and enjoy more free time with your huge salary while the lower ones work more and have more responsibility while remaining on their sh*tty salry? He really didn't grasp the concept that the motivator is money (or free time) - not more work. How is that motivating?!
@@corvuscorone7735 they understand incentives, they will kick employees teeth in to do the maximum everyday because THEY get the bonus, not the workers. Then the next year, they'll want everyone to do even know for the same money. Then they'll cash out and run, next one.. wants more still. Some never even did the job, they go straight to these positions because they are connected and 'too good' for that peasant labor 🫢
I am disabled. I live on an income that puts me well under the poverty line. I do it by, like you said, wearing my clothes until they rot, eating cheap food, etc. I also have student debt from before I knew I was going to be disabled. That debt is untouched and has doubled, because I don't even have enough money to stay alive without help, much less make a dent in a massive debt. I have a bachelor's degree and was in the process of getting my masters when all this went down. Earning more is not an option. There IS no option.
For those of you who think disability is a free ride for people who just want to sit on a couch and eat bon bons, I hope you are bringing the bon bons, because I sure as hell can't afford them.
I thought that if you were disabled you could have your student loan debt discharged. If you are not on SSID or SSI, there is a form on Nelnet that a care provider can fill out. Is this not so?
@@JLakis There is a process for discharging it. It is labyrinthine and seems to be subject to their whims and timing, as every government program I have dealt with. I have completed the process once. It took 8 months and they dropped it because of the Covid program that suspended student debt loan payments. Now the payments have restarted and I am back to square one. Nothing proceeded with the paperwork during Covid, so it was denied.
And I am on SSDI, but that is not considered enough of a basis for automatic discharge. They require an MD to certify that you are disabled. The paperwork is massive, and it is almost impossible to find a provider who is both knowledgeable of my health and willing to put in the time to fill out the paperwork. I live in rural Kansas, and my local providers are APRNs, and they have told me that they do not process any disability paperwork. I do not have access to an MD at my current healthcare clinic without a referral, which they will not give simply for the purpose of filling out paperwork. That leaves me with the option of paying cash for a provider in a different area, probably with a larger population, who might, _MIGHT_ be willing to submit the paperwork again.
People who have not used public programs are shockingly ignorant of all the ways the government presents a program for assistance, and then deliberately undermines the people that seek help. The government is not in the business of helping people. It is in the business of LOOKING LIKE it helps people while keeping as many people, regardless of their needs, off of the rolls.
@@JLakislike OP said, the gov only looks like it helps ppl. Part of this is to make able bodied people feel justified in feeling like disabled people are sponging, because, wow, don't they get enough grace already? They get everything paid for and free health care and debt forgiveness and here I am working for the food on my table and can't afford health insurance! BUT REALLY we are given an absolute bare minimum by the fed government, and most programs LITERALLY hire people to DENY applicants so that most people have to apply two to five times for these programs. Many disabled people DIE before they are approved. And that's the point.
Plus, we don't have marriage equality. If you get married you get kicked off the programs because you are now your spouse's problem. But what if they're disabled, too? What if your yearly care normally exceeds 1million and you absolutely rely on the gov? What if you're both poor and you would have to be a two income household anyway? The answer is that you can't get married and you might not be able to assure that they can have legal access to your care.
So if you aren't radicalized already, this is your sign. ♿
This is why I'm still working full time while on dialysis.
Besides the insufficient income, having to make sense of all the programs that are allegedly intended to help requires some sort of advanced degree.
@@myrrhis01 I’m sorry you’re going through all this. I think people forget that they are always one accident away from losing everything- because healthcare and societal safety measures in the US = 0. Exactly as you said it’s all smoke and mirrrors. If you try to actually utilize the ‘safety nets’ you will see how many holes there are. We have insurance and it’s still expensive to have anything done. I have gone through all the bills with my kids and then they’ve done the math with minimum wage - unless you have generational wealth, connections with your family, (something!), it feels almost impossible. I hope you can find an actual MD or social worker to get you through the hurdles .
I’m really tired of being forced to participate in a game of monopoly that I didn’t start.
THIS!
This is true, and not just an American problem anymore.
In Korea now, when people (usually young people, often with college degrees that led them to soul-crushing jobs that don't pay well) spend their money on expensive things and don't bother saving, they're calling it the "f*ck-it expense" or "shibal biyong". They aren't trying to save for cars or homes because so many of them see it as pointless. They don't date. They don't have children. Why would they? They see the trap they're in...
And pretty much all the properties have been bought up by another player before you even started playing
That's EVERY generation! Do these dum dums think millennials, x, or boomers STARTED the game?😂
@@rosethorne9155That goes to show "Asians are smart" is a stereotype! Some of them will grow a brain and quit spending on trendy crap when they get some maturity.
As a boomer, Pell grants and the GI bill plus reasonable cost of Universities allowed the middle class to move up. The Reagan administration pulled back on Pell grants, costs skyrocketed, and predatory lending surged to create a massive debt problem. The era also marked the reduction of mental health care, union busting, mass incarceration, golden parachutes for millionaires, and the loosening of gun restrictions. This is what it looks like when the middle class collapses by neglect of the essentials.
Btw the gi bill got ganked back after Gulf 1, lost track after that. But yeah, everything you say is 💯
Robert's got a quick hand...
(In response to messing up education and mental health services, but loosening gun restrictions)
Absolutely right. Unfortunately.
But I just recently learnt that Reagan had one of the highest approval rating? This guy sounds like he absolutely ruined America, the more I find out what he did while in office. How was his approval rating so high?! (Genuinely curious. I am not American)
@esthermeyerhoff4113 he was an actor (unlike trump) and a true believer, so he put a lot of heart into telling people what the wanted to hear.
THANK YOU!
When you are poor, there is so little relief. You don't eat out, you don't go on vacation, you wear your shoes through the soles. Spotify might be the ONE bit of joy for a person, and if anyone needs a bit of joy, it is a person carrying the stress of poverty.
Just remember that the portion of video you’re seeing highlighted isn’t the entire show, each episode is usually an hour or more. I’ve been bingeing Caleb Hammer videos lately and he actually comes across really empathetic and down to earth. There’s a theatrical side where he reads out all the “bs spending” his guests do, but he’s also a proponent for therapy and shares his own mental health (and debt) struggles.
For reference I grew up poor and dug myself out. I bought a house as a single mom in one of the most expensive cities in Canada. The way he advises people is exactly what I did to get out of the debt I won in the divorce and save up for my house down payment.
@@dorcasg5558 that's all fine. I *really* don't care for any drama that supports the prejudice society already has that poor people are lazy or deficient in some way and are poor solely based on bad spending habits.
Even if that person turns out to have some good advice for people.
@@dorcasg5558 "I grew up poor and dug myself out" doesn't change the reality that most people cannot do that.
The way he advises people, won't work for MOST people.
Your life story - while I'm glad it worked out for you - is the anomaly in the data set, used by cruel people to justify not changing the systemic problems. You are not the norm. You are the lucky few.
Being lucky doesn't change how hard you worked. That is something people need to learn, to not get defensive about the fact that luck was on their side. It doesn't mean you didn't work hard. It means when other people work hard, they don't also get what you get. Your work still mattered. But you had opportunity others don't.
@@serenity1378 or won’t. It really depends. It took a ton of belief in myself when other people kept trying to push me back down. Personally I found the kind of statements like you’re making are just discouraging. If you want to use excuses for yourself - that affects me zero, but trying to imply that it’s impossible for everyone is unnecessarily negative.
@@dorcasg5558Nothing that person said was negative in the slightest. You need a dose of reality.
All the $10 cuts in expenses in the world wouldn’t have gotten me out of debt. Now I economize to stay out.
Absolutely
Ultimately, if $10 in cuts to expenses is the thing that's stopping people from being in debt, they either don't have a real problem with debt or things are so tight that there isn't enough self control in the world to keep that up. .
Exactly! The attitude is, "Young people can't afford a home because they waste money on things like avocado toast"
Please. No amount of fawking avocado toast is going to add up to the $80,000 down payment you need for the completely average, run of the mill, completely normal, no frills median house. They're currently priced at over $400,000. This is the median home price where half of houses are priced lower and half are priced higher
We're simply priced out. The system isn't sustainable and it's going to break somewhere
@@rayzerotAnd have you watched channels like @CyFy that even if you CAN get a house built how awful they have been for decades? The new builds are designed to ensure you'll be spending so much on maintenance from being just built to look good enough to gloss over the problems that it's not even an investment anymore
For a budgeting guru the math aint mathing with this one.
A single $10/month charge is pretty reasonable as far as an entertainment budget goes. If there were multiple such charges it would make sense to choose whichever is the most important to you. People do need joy in their lives. A budget needs to be sustainable in the long term.
You really underestimate 10$ a month. It only takes 625 years to pay off 75000 dollars with 10$ a month. Just get your act together.
Not to mention interest
@@justskiddingaround-idontkn7519 Don't forget Netflix, so really $25 a month 🤣
Wait you’re forgetting the Starbucks and Netflix! If you cut those out, it’ll only take 80 years to pay off that $75000 so long as you don’t collect any other type of debt; you might be dead by the time it’s paid off, but that’s the price we pay for Freedom ™
Just bootstrap a little harder! And in ten of your lifetimes, you can FINALLY get there and be like me! (The guy who "bought" my own car at 16 coz I was born with half a mill in the bank)
By the time we are as old as America we can pay off our debt! XD
If i recall correctly, he yelled at this guest for buying medical supplies that weren't covered by insurance. Things to recover from major surgery, that Caleb determined must have been unnecessary since they weren't covered by insurance. In America.
i have no idea who this dude is but he seems so out of touch with reality
@@user-fc2xk3uv8y most of the wealth mindset bros online are wildly out of touch with reality
Sometimes medications and supplies are cheaper without medical insurance, that’s how insane the medical system is.
I wish insurance writers were required to go to med school tbh. SO many things they are like "it's not necessary!" like...unless you want us to all be vegetables, YES IT IS!!!
He used to be good, but he bought in to the "belittling the guests gives me views" way to much.
I remember going to a Christians Against Poverty seminar on budgeting when I was a volunteer in my early 20s. One thing that really stuck with me about that seminar is she had a whole list of expenses on the board, things like rent, phone bill, petrol or bus tickets, clothes for kids, magazines, friday night takeaway, new shoes etc etc. and she asked us to list them as essential and luxury. And once we had done this, and put things like the takeaway and magazines into the luxury list, she then explained to us that little moments of joy, like spending £20 on pizza at the end of the week, are what often keep people going, and without them, people spiral into depression. So they're not actually a luxury. This was a budgeting and debt advisor telling us that pizza was an essential. It really stayed with me, because she was totally right. It might not be pizza for everyone - for someone it might be a new outfit every now and then, or getting your nails done, or having a drink with friends... but those little inexpensive 'treats' are what give people the energy to wake up monday morning and get their kids ready and get to work etc. I know not all moments of joy cost money, but a life without things to look forward to and enjoy, is so much harder than a life where you're looking forward to having that takeout on friday.
It's almost like those so-called "luxuries" are the difference between merely existing and living a life with human decency.
LOL! Some "Christian"! Magazines and fast food don't give your life "meaning"! I had a teacher who told us "credit cards save you money because they let you buy on sale when you don't have any money"!
@@3namechangezalowdevry90day7haha
Credit cards save money if and only if you DONT use them when you don’t have money
Pay it off in full each month, folks. Just collect the cash back
I watched Caleb Hammer for a while but had to stop partly for this reason. I think one of the ways this is perpetuated is that a person with a reasonable income will sometimes make a sacrifice (for example, eating ice cream at home, instead of going out) because of the cost, and extrapolate that to every choice that a poor person makes. The challenge is that the lower income folks don't have those choices often, so the small joys are the exception. It really bothers me when people make pronouncements about others' income and choices without the whole systemic picture around them.
Too, I think it's assumed that there has to be some laziness involved. Even people who are somewhat aware of how poverty can be systematic don't fully process how much poverty traps financial decisions.
@@dermaspaceSC
Poor people usually work at MUCH physically harder jobs.
Poor people quite often run their bodies into the ground to survive.
I also cannot respect how he mocks the people on his videos, there's just no compassion or even an attempt at understanding
@@grmpEqweer tell me something idk. Not sure why my comment inspired yours but people with more money do often assume poor people aren't trying hard enough to get "better jobs" or that they are too lazy to save money. None of those people are going think them working more physically demanding jobs is anything but a sign they are too
lazy or too dumb to do something "better." And since you didn't really get my first comment...I'm not one of those peoples; I'm just aware of some folks' assumptions.
@dermaspaceSC caleb actually pays for trainings and stuff for his members. He really does help even though he does it in the most crude way possible. He's way more in-touch than the Dave Ramseys of the world.
Most of the people he consults for are eating out every other meal.
Cutting out every little extra is not only bad for mental health, but for physical as well; as someone who was living on ramen, white rice, pasta, & sausages for a long time, I can tell you that the medical expenses incurred when certain vitamin defeciencies got so bad that I was hospitalised for them (vit b deprivation psychosis, vit c deprivation scurvy, vit d deprivation bendy bones, severe anaemia, etc.) + time off work, were not worth the few bucks I was saving on frozen veggies + fruit - frozen berries are surprisingly cheap! - + cheese + milk a week.
Buy a cheaper brand of toilet paper. Give up disposable period products. Wait a bit longer to replace your toothbrush. Do whatever you have to, but your nutrition is worth investing in. Your grocery bill _will not be the thing that ultimately gets you out of debt,_ & you only have 1 body. Protecting it saves you money in the long run.
It's cheaper to pay the farmer today than it will be to pay the doctor down the line as they say.
Absolutely! I’m far from rich but I feel soooo much better when I have good nutrition.
Yeah. Brown rice and whole wheat bread/pasta are way better.
This is why the GOVERNMENT should have stopped the Student Loan INTEREST GOUGING 😡The interest is what is causing people to stay in debt. 😡
I think college is a scam at this point. The greed in this nation is evil. Stop the price gouging called inflation! Or how about all the people who buy up properties to get rich on equity? The housing market, the cost of rent- it's just downright wrong!
EXACTLY! Those "income based payments" don't really make it clear what a person is signing up for... honestly, if people KNEW that their interest would be calculated exactly the same, they just will be "allowed" to pay less even that that, so the unpaid interest gets added to principle owed... I wonder how many would just default, instead.
A lifetime of payments to get even more behind... or defaulting and surviving and eventually recovering your credit and moving on....
Idk if that would be an option, tbh, but it could certainly warrant consideration😢
@@KOKO-uu7ydif only there was a law that people had to be provided with all of the information about their loans before they agreed to them. Oh wait; there is. People just don’t actually read it.
@@Newnodrogbob I think there is, but the paperwork that fulfills that requirement is kinda like the "Agree to these terms of service before you can use our app" sort of long, unintelligible, useless rambling things that most times and most people just click "agree" on.
I just happened to have some idea of the pitfalls to look for, and the deceptively vague wording and odd terms pushed my alarm bells.
I honestly think "interest only" payments should be outlawed. Perhaps some provision of "No matter how it happens, loans are completely paid off and discharged once 2x original loan amount is paid" would be good too. I mean, that would still be predatory af, but some of the amounts getting paid only to have the "amount owed" be even MORE sometimes is just pure evil.
I know loan forgiveness is chipping away at this and helping a lot of people. That's GOOD! There's unquestionably more needing to be done, tho
Sorry. I ramble on stuff 😅
Edit: I also had my phone freeze up and couldn't read your last couple lines until it cooled off... I had given you the benefit of the doubt. You might want to consider some of that in your own life? To others? 🙄
We expect people to read instructions at a 4th-8th grade level, but life impacting legal docs are in legalese thst is gibberish to most.
That's not lazy. That's being victimized.
Also, maybe you missed it in my original post, but the people that were SUPPOSED TO HELP, that I should supposedly TRUST the guidance of, were kinda glossing over or unaware of those nasty little details... again, they were probably just following THEIR OWN training. Still, thst makes for a system that seeks to victimize vulnerable individuals with few options.
I did NOT finish my education because of the financial challenges, and society lost out as much as I have. We lose SO MANY HUMAN RESOURCES, just because of shortsighted or power-hungry pricks who don't give af ...
Have as lovely a life as you support others in having.
@@KOKO-uu7yd the difference between the EULA on an app and the terms of a multi thousand dollar loan is one impacts your life (and is legally enforceable) and the other isn’t. It’s criminally irresponsible not to understand your loan. And these are loans for university degrees FFS. People should not sign up for loans they can never expect to pay back.
I agree this stuff is out of control. Loan forgiveness is the hat trick of government help: it rewards bad decision making (thus encouraging it in the future) punishes good decision making (I busted my ass and paid off my loans like a sucker so I get nothing) and utterly fails to address the core problem: access to billions in easy government money led colleges to balloon their prices, vastly outpacing all other forms of inflation.
Edit: “easy” government money, not “East.”
Thank you finally someone said. I am so tired of these money gurus going around talking about how easy it is to budget the money that you don't have.
Yes it is possible to be a compulsive spender and if you are a compulsive spender budgeting skills might help a lot but if you're just broke know about a budgeting is going to help you pay your bills. The only thing that's going to help you pay your bills is greedy people start paying you what you're worth.
That’s the issue though, most people live above their means. People are going on his show for help, but don’t take the advice he is giving.
I loathe the ones that are like make easy passive income, just take $1000.... And already I'm like who has $1000 that isn't immediately going to go to pay off some debt or to do some car maintenance you've been postponing. Or replace an appliance or piece of furniture instead of adding a new piece of duct tape. Or even just be able to cook some healthier meals.
@pri.sci.lla. no, they don't. Maybe once, but no, they don't. People are aghast at what folk like me don't have, but this is because we live within ourvmeans, and so do so many folk we know. We have a few small things, but if we gave them up it would in no way pay for a big thing we should have.
@@Asongbookyes they do. I am not denying your experience, but it’s a fact that most people spend more than they make. This is not a character judgement, it’s just a fact of where we are in society that is costs more to exist than we can make.
I love the money gurus.
"Buy my book on How To Get Out Of Debt. Send $19.95 plus s&h 😂
Same here. I lived paycheck to paycheck. Only thing that helped was making more money. Once that happened like a miracle I was able to save money.
10 years later it is still hard for me to replace something if it is still "usable" or to buy something I want vs just what I need.
Spending money wasn't my problem nor was debt. It was lack of money.
...If I become better off, I'm still going to dumpster dive and trash pick.
I've gotten too much good stuff that way.
That's not a problem that most financial influencers want to acknowledge. You do need a certain level of income in order for budgeting and money management to do any good.
You already have the saver's mindset, so that puts you ahead! Other people would just spend more as they made more ( hedonic treadmill) and stay broke!
@@SmallSpoonBrigade Not true. You have to start telling your money where to go from the time you start making it. If you don't develop a responsible saver's mindset, no amount of money will get you out of debt.
Ahh yes, I really hate when my student debt doubles after I subscribe for Spotify premium or my fav. youtuber's patreon...
Politicians have literally gone on the record saying the reason we have inflation is because too many people have "too much" money in savings and that prices won't go down until those savings are drained.
It doesn't matter how hard we work or how many comforts we deny ourselves, they will not allow us to have any breathing room. We must ALWAYS be in danger of falling into poverty. It's how their system works.
Along those lines, did you know it's illegal for someone on welfare to scrimp and save and through diligent denial of all their pleasures over the years to somehow manage to put $2000 into a savings account for emergencies? Anyone with $2000 in savings is kicked off welfare. So the system is literally built to deny you the opportunity to better yourself, or to have any security at all. Nothing less than a huge leap in income can get you safely off welfare. You cannot budget your way off of needing welfare, even though you can budget your way out of qualifying for it.
They're so close to being right. Too much money is being held out of circulation; it's the mountains of money that the top 10% and 1% are holding onto that keep our society from working for everyone. Nobody's life is made better by those mountains existing or growing bigger, not even the lives of the owners of the money-mountains.
@@rebeccas265
I keep telling people that the top 10% hold about 75% of our national wealth.
...The bottom economic HALF hold 2.1 percent of the national wealth.
...The top 10% have enough money to buy our representatives, so that their wealth is protected.
Capitalism demands 100% until you're in the 1%
@@grmpEqweer It's not the top 10%. Probably not even the top 1%. It's the absurdly wealthy that are hoarding all the money, a fraction of a fraction of a %.
also doomspending is a symptom of lack of trust in the economy, not just irresponsibility
Exactly!! It's infuriating to me that people don't realise that
If you were RESPONSIBLE you could at least trust yourself to prepare for the future, not spend on crap!😂
I started the year with about 15k in credit card debt due to a mix of emergency payments, having to rely on it when my bank account was dry (which was often), and a few admittedly poor choices I made. I’m set to clear it by the end of the year thanks to getting a roommate to cover some costs, getting a pay raise at my job, and, the biggest reason, an inheritance that got rid of 2/3 of my debt.
Even though I could have cleared it eventually at the rate I had been going at before, it would have taken two years of me being miserable. No amount of budgeting would make it easier.
Planning and budgeting is part of frugality. If you hadn't developed that skill, you'd have blown any extra money you made.
My spouse and I had to lower ourselves to beg for $2000 from my father-in-law because the property taxes on the house I inherited from my grandparents had gotten beyond our ability to pay the city enough to avoid a lien on the house. We are in our 30s, and this man had me in tears lecturing us because he heard that we had gone to a "concert" the weekend before...it was a small venue show that we had planned and put aside money for months before...the show was $20 total and we had saved a little extra to ride the subway and have dinner in the city before the show. We entertained ourselves before the evening by walking around the city and enjoying the sights at no cost. I grew up poor and have always budgeted well, but this man made me feel like a misbehaved child for not "being more responsible" with our money. We eventually paid him back in full, and now we are facing down another huge (about $2000) tax payment... we are no further for having gone through that. ..maybe if we hadn't had that day out.
The day out kept you going your dad is a jerk
Sorry dad in law
I'm so sorry you're struggling. It's not right that it may come to this, but please do have a thorough plan in place to sell the house in case you or your spouse can't get a substantial raise or better job soon. I'm sure grandparents' home means a lot to you. I know that selling the house may feel like selling the strongest connection you have to your deceased loved ones. Still, it might be an inevitable tragedy that you cannot keep the house, and you don't want to be left both heartbroken and financially destitute in one blow. I hope things turn out well for you. All the best ❤
You know property has taxes! Plan ahead and start saving for next year! Stop feeling sorry for yourselves, you get a roof over your heads unlike so many.
Yes! Yes! Yes! This needs shouting from the rooftops. Ordinary workers across all industries and sectors are increasingly underpaid while senior and board level management are generally overpaid. And, worse yet, the huge amount of money hurled at shareholders above all else is obscene.
You can't cut costs when your costs are required for survival. Not even thriving, just surviving.
You can just about always cut SOMETHING. Learn to DIY some of the things you pay for. Or move to a cheaper place. Don't be helpless.
@@3namechangezalowdevry90day7 again, you can't cut costs when they are required for _survival_ .
That means your options are to eat or live indoors. You can either put money towards your transportation, or you can keep the lights on.
You're still stuck in the mindset that poor people are spending money they don't need to be spending. That's the same sort of thinking that convinces people that the Welfare Queen myth is real.
The reality is there are parents who are going hungry so that their children can eat.
Cut what?
@@3namechangezalowdevry90day7People struggling to survive already understand these concepts. We're not morons. Do you think moving to a cheaper place is some brilliant life hack that people just can't figure out? The last brainlet who suggested that to me lacked basic reading comprehension skills.
I totally agree. Budgeting is for people who haven’t yet fallen into massive debt, and need to learn how to spend to AVOID getting into trouble by managing their money well. The student debt problem, imo, should be the main issue to solve, with housing costs being second. Starting your adult life with crushing debt is just setting most up for failure, unless you are going into a very high paying career. College and universities need to be more affordable, and the student loan system needs to be overhauled.
Back in the time when dinosaurs roamed the earth, junior college was tuition-free.
"Starting your adult life with crushing debt is just setting most up for failure, unless you are going into a very high paying career."
Credential inflation has taken root and the solution isn't making credentials even more readily available. It's the opposite. People who seriously want credentials will continue to pay for them. People whose credentials are seriously valuable will continue to pay for them. At some point people acquiring worthless credentials will figure out that they're wasting their money and they will stop doing it. That is the solution to the problem.
If someone is 75k in debt on some IBR/IDR program because they make 42k/year that's an indicator that they had no business in a post-secondary institution in the first place. Getting people that do that to understand that they could have been making 38k/year with their high school diploma and probably more than 42k/year four or more years later with experience is the problem that needs solving. The problem isn't having debt. It's taking on debt for an asset that's not even worth what it cost.
@@BTrain-is8ch I agree with your point, but I think you are also simplifying the issue too much.
First, our culture has been conditioned since at least the 80’s to believe that they must have a college degree to succeed. Meanwhile, the cost of education has skyrocketed, and the wages going down vs. inflation have made it much more difficult for parents to have college funds for their children to offset the amount of money they will need to borrow to fund their college education.
Also, the idea of credentials relevant to one’s career requires that everyone knows before they start college what their career will be. While some people may follow the career plan they had at 18, many don’t. Part of the growing up we do in college is finding out what we like to do, what we’re good at, developing skills and learning about ourselves. Then when we get into the job market, it can change again, because you don’t know what it is to be a teacher (for example) until you actually start doing it.
Next, you assume that everyone who gets a certain education is able to get work in their field of study as soon as they graduate. Sometimes there are too many people entering the job market with the same degree and there aren’t enough positions, so they have to find a different job while trying to get into a position in their chosen field.
So getting a college degree helps keep your options open to try jobs that require degrees, but unfortunately we can’t see in to the future and know what jobs we will have in the future. This concept of credential awareness should be part of the counseling students should have when applying for student loans, but imo it’s not a blanket solution. Loans need to be more flexible, so that when the student’s plans change, they can be advised of the impact on their future debt and change their loans accordingly.
@@diamondstud322 1) People who say "but society told me" are least suited to be in post-secondary institutions. If you are in a post-secondary institution "because society said so" with no other reason and no other research shame on you. That is an absolutely absurd reason to borrow any amount of money.
2) Every engineer goes into the post-secondary scenario knowing what they intend to do afterwards. They have to. There's too much curriculum to cover to be wishy washy about it. As do doctors, lawyers, and a large percentage of the degree paths that produce positive ROI. Coincidence? You should not be borrowing thousands of dollars a year to "find yourself". That's bull. Go work. Have life experiences. Get out of your parents' house. Get into and out of trouble without mommy and daddy's assistance. That's how you find yourself and figure things out WHILE making money instead of spending it. Figure it out THEN go to school if necessary.
3) If you learn something useful in a field with real demand there are never "too many people entering the job market". The BLS keeps stats on job growth, incomes, and more. People claim they can't "see the future" but the BLS has been monitoring and documenting job market trends for decades and the same jobs the BLS said were in high demand with high growth when I was a teenager are still in high demand with high growth decades later.
I live in France, and believe me it's not a perfect country, but there is a lot of social financial aid. There is still systemic racism and classism, but at least there is a system to help people live. There is a financial aid system that provides benefits for families, elderly, disabled, etc. Government programmes such as before and after school childcare, including lunchtime childcare (it's 2 hours here so children are looked after by an after school programme) are subsidised by the government and what you pay is income based, including your meal. So every child eats the same at school (a complete, healthy meal) but families will pay different amounts according to your income. I'm one of the highest earners in my children's school district so I pay more than most parents, but I think it's a fantastic system. It's still very affordable to me and I'm glad those who have a lot less income than me pay basically less than €1 a day per child. At least it gives lower income children some kind of opportunity to do well in school and in life. And university is basically free here as well (except for the grandes écoles which is a problem).
You forgot to include "For now" because if Macron loses the snap election, you're going to look like Britain real soon, and nobody should want to be Britain right now.
@@scottsmartky
Britain does this too though.
@@kellycowley3535 You might want to check again. Brexit has decimated Britain's economy. They can't even guarantee you'll get an ambulance if you call needing one now. They're slowly eroding the NHS too. The pre-Brexit Britain was as good as France in a lot of aspects, but once you elect far-right loons, things go south rapidly and turn everything to ruin.
I watched a couple of this guys' videos like a year ago. The people would spend money on very dumb things sometimes and he'd give them solid advice imo. I don't know what happened, but this is just reminds me of that "poor people have fridges" fox news segment LOL
I've got a lot of trauma around spending money thanks to how my parents fought about it all the time, but fortunately, I've worked very well past it over thirty years. It's true! You can cut out all the joys in your life, minimize your spending, etc. and it won't make a huge difference. The best thing I did was, by almost 100% luck, end up taking a job in a career (that I DIDN'T GO TO COLLEGE FOR MIND YOU) that helped land me a white collar job. I have friends that are sitting on the poverty line. I pay for them to have little joys when I can afford it because it isn't fair to make yourself miserable in hopes of getting out of it. I wish it was easier and not just based on chance most of the time.
Ive seen a few of that guys videos and some of his guest make bad financial decisions (like trying to pay for credit cards with credit cards), but ive seen a number of guest who make reasonable decisions and just are in unfortunate situations, who he just shames and berates and makes comments like in the above video that dont really lead to any real solution. People think if youre poor you should have no pleasures in life, just work and sleep, but unless you make enough money none of that matters. The reality is in no world is giving up $10 spotify going to help her resolve $75000 of student debt.
Then they wonder why so many poor people are bitter and irate.
Free streaming exists! $10= 8 food items at $ tree if y'all are really that desperate! A stocked pantry means you can pop open a can of soup not order door dash and the savings builds up!
I'm sure she had far more vice and entertainment spending that could be easily eliminated to help her pay off debt!
It’s the interest rates that get you, with all debt. It’s how they profit by lending you money. However, to get a low interest line of credit, to buy a home, to have anything - they make sure that you make enough money first.
Evictions in Canada are now 36 hours & you’re out of your rental with a sheriff. It happened to a nurse that I know, once her rental was sold. 36 hours - she’s employed but homeless. There’s a 2% rental vacancy. She’s lucky she has friends - money really does fix everything. Access to money fixes everything.
That is the national tenant rights' law? Jeez. In Philadelphia it takes at least three months, and there is landlord/tenant court. It's not the same in all the states, but golly. I thought Canada would be better.
@@JLakis Canada is starting to have tent cities. They raised interest rates, doubled down payments, didn’t build enough housing for the population, then utilize an evil eviction law. There’s a 2% vacancy. Rent sky-rocketed. There’s homeless people everywhere, in a country as abundant as ours. Even people with good jobs are struggling against inflation & the carbon tax. Everyone is in debt. Many young professionals don’t even drive anymore. Gas is way too expensive. The service industry is crumbling. No one wants to go out. No one wants to tip or spend money.
@@J.B.Layne_Music Fellow Canadian here. All of this is true.
@@AlyssaIrvine Even if you start a business or work overtime to attempt to pay off debts - you get taxed to death. There is little incentive to be productive in Canada. Add the harsh winters? Misery Country.
The only thing that has ever changed at colleges is the price of tuition always going up.
I remember my therapist offered to help me with budgeting several times and my answer was always that I had nothing to budget. My situation got better when I got promoted at work and made more money
Poor ppl need joy too. It's evil to make someone cut out their Spotify premium and favorite slushie.
It's just more victim blaming and oppression.
And yes! Homeless ppl do need smartphones. Don't even go there.
*Rich Boy:* “Stop Buying Spotify Premium, Its The Reason You're Poor!!”
*Folks:* “Kay So, How About You Stop Buying Gucci and Chanel And Start Paying Taxes?”
*Rich Boy:* “OMG WHAT?? WHY WOULD I DO THAT??”
It’s not evil, it’s a suggestion. These people go on his show for financial help and that’s what he offers. He is showing them the quickest way to get out of debt, it’s their choice to listen to whatever they want but there is a reason they are asking him for help…
@@pri.sci.lla. and his "quickest way" out of debt is "fuck you be miserable"
@@pri.sci.lla.he is showing them a delusion, not a solution.
@@pri.sci.lla.he has some helpful advice, for sure. I stopped watching because he kind of acts like an a-hole, now. And it’s for views. So he can make more money. 😂
For people like these, Poor people shouldn't have the right to enjoy small things like them because well...how about paying for your massive debt first instead of getting small things that make you happy instead of realising that the system most of us live in doesn't allow us to do that and pushes us further down
Yea a lot of this conversation really speaks to how people think of poor people, like if you don't earn a certain amount you're not allowed any simple pleasures, what kind of life is that? Also expecting people to live under capitalism and constantly be bombarded with messaging to buy and never do so is asinine.
Bet you have never had powdered milk, or actually government cheese.
Have you ever seen the inside of a shelter? Gone to bed hungry?
No? Didn't think so,
You thought you ate, but you should sit down.
Your plate is full
@@marilyne4324 lmao "shut up and stop caring about poor people because you've never been this poor, ignore all the people who are this poor damnit, and stop showing empathy"
@@marilyne4324That's hilarious, considering the fact that I've had nights where we'd eat nothing, had to work really hard to get basic necessities like water and electricity (for literal light bulbs and a fan), no father so everyone had to do anything to get the food on table for almost all of mine and my family's life, maybe don't talk sh*t if you don't know sh*t
I AM very fortunate to not be homeless.
Just because I have not been all the way to the bottom of that barrel doesn't mean I'm not poor, doesn't mean I can't SEE that bottom. With my health problems I'd likely expire, being homeless.
It doesn't mean it isn't extremely frustrating to keep my geriatric little car on the road _because I can't get to my job without a car._
The car has topped 200,000 miles now, it's needing expensive repairs.
I'm mentally fried over this.
Yep. I had someone try to "help" me figure out "how to stretch your budget". After a bunch of the usual stuff like "Make coffee at home" (I don't even like coffee), they finally found something....dropping my home internet. My internet plan is like $40/month, an extra $480 per year isn't gonna make a dent in anything. Hell, it's not even my portion of one months rent. I'm not giving up my ability to keep in touch with my sister and friends so I can "save for a down payment". Yeah, I'll just love spending the next 97 years saving up for a down payment, so if I live older than any human has ever lived I'll finally be able to buy a house.
If you have a smart phone you don't need BOTH that and home internet. I'd let it go and put the savings on your highest interest rate debt unless you're using the computer for work or school!
Even if you had no minutes on the phone you could talk and text your sister over public wifi with a free downloaded app! ANY smartphone will do this, even a $40 used one!
@@3namechangezalowdevry90day7 data on mobile phones can be sketchy and many job applications assistance programs function online now. Sorry but internet is necessary for a lot of people.
@@3namechangezalowdevry90day7 oh no, my $7 per month phone plan that gives me 4GB per year, so much savings. I mean you can do so much on 4GB like uh...run out in a couple weeks if you have no internet at home from just doing basic things like checking email and the weather forecast. You need to learn to read context. Seriously. My comment was about obnoxious people trying to deprive me of every scrap of joy in my life to save a few dollars and you decided to join in.
Also I don't have debt, so I guess I'll put my savings on my non-existent debt. I'm just poor and barely afloat. I'm also chronically ill, I'm not giving up my ability to contact people unless I leave my home when I often can't leave my home. I do call my sister over VoIP because my plan also has limited minutes. I do buy used phones (literally never bought a new one and it's at least a few years old every time). Having to drive somewhere every time I want to use Wi-Fi would cost me more in gas than I would save.
Ditching my phone AND my portion of the internet bill would save me a whooping...$320 per year. That's not worth it. Well thanks for proving the point that I was talking about.
The Wagen and the Inflation are the problem, not poor people spending money on things that are heavily advertised.
The rich keep us poor.
And than they say we have to take respnsibility.
For what? The last financial crash or the next?
You're not in control of society. You're responsible for your own decisions, though.
Wait!? Did you just solve poverty? Is "making more money" the only real way to end poverty? Yes! Hearing the wealthy look down on The Poors and say they have a budgeting problem is like telling a bare field of crops they just overused their water allotment last season, and if they had just saved a little more, we would have more corn. The condescension is vomit-inducing.
Well put! And most of the time when the rich folks do finally realize that the only way for us poors to get out of poverty is to make more money they then immediately assume that that is an option that's immediately available to us, as if it were there all along and we simply hadn't asked for it yet out of ignorance. The sad reality is that the most amount of money that a person can get paid is the amount that they can convince employers to pay them, not the amount they need or the amount they actually deserve. Some of us just aren't worth very much to employers because there's no incentive for employers to value us.
So many people with that attitude are comfortably middle class inbreds who piss and moan about taxes while owning more vehicles they need, plus an RV and a boat. They're projecting
It took decades of hard work and luck for me to finally get to where I earn enough money to be out of debt. You are absolutely right, earning more is the answer, but sadly it is out of reach for so many. The vast majority of the wealthy and middle class have no idea what it's like to have to decide whether to eat or pay an overdue bill.
When the coins on the floor of my car were the only reason I had enough gas to get home from work.
The other half is the boots theory of it, too. When you only stick to the cheap stuff, it tends to cost more over time because a lot of cheap stuff breaks, or doesn't work, or leaves you vunerable to expensive accidents. When you never allow yourself little pleasures every once and a while, you tend to be constantly stressed out and burn out, which itself can lead to a bunch of expenses.
Also, as someone that has the free version of Spotify, its legitimately awful. You can't chose which song you want to play, and you generally get an average of one unskippable 30 second ad for every song you hear.
Just rip a bunch of albums , put them in drive and listen to that! 120 a year could go a long way toward stocking your pantry, which saves you the cost of eating out.
Yes, a lot of people who have money do not take into account that budgeting your way out of poverty isnt possible. If you have managed to pay most of your daily necessary bills (in some cases that's a big if) no amount of tightening one's belt is going to help you pay another bill. What poor people need is money! When poor people get a lot of money, they put that money back into circulation by buying the stuff they need and paying their bills with it! Theyre not out buying alcohol and drugs. They're getting the things they need.
..then there's just being too depressed to do much of anything at all
Some people don’t have the privilege of not being able to do nothing at all. Even with a clinical diagnosis.
@@pri.sci.lla. Pretty much.
100% THIS all day long! Grew up poor too. And my wife and I, who just celebrated our 20th wedding anniversary) bought our first home last year. For most of our marriage, we worked as community based counselors (which paid less than teachers in the early years), and did every single frugal thing imaginable. We did without, drove small cars, did not go on vacation, cooked every meal, etc. It wasn't until we both became licensed therapists that we were able to DOUBLE our income that we were able to build the life we wanted and get a house. Like, 18 years of struggle and doing without when it was more money that changed our lives completely.
It shows the disconnect too when they harp on things like avocado toast. Where it is popular, out here in CA, it's because avocados are dirt cheap in season. Hit your local farmer's market at the right time of year you'll find them for 3/$1. So half an avocado, plus toast plus maybe an egg? You've got a meal for maybe 50 cents that will keep you full for most of the day. Which they would know if they were actually shopping on a budget instead of trying to dictate down to people who have less coming in than they do how to spend their own money.
Preach, I was an e-nothin' in the navy when the whole avocado toast thing happened. It was something you bought on the side of the road outside of base in San Diego. I didn't get it.
Trying to make a crawl out of poverty myself rn. Thank you for speaking out on this. Your nails are on point today btw!
A week ago, I went to a fast food joint and got a burger, fries, and a shake. I had to convince myself the entire drive over that it was okay, that I wasn't being wasteful, that this was a normal thing that lots of normal people do and I shouldn't feel guilty spending a little bit of money on a treat for myself. I haven't had fast food in probably seven or eight years. It will probably be another seven or eight before I can convince myself it's okay to do it again.
I also had that student loan debt experience. About a decade of diligent payments, and when I looked it up, a big fat NEGATIVE ONE PERCENT paid off was staring back at me. I think I cried then. (Still in that situation, for the record.)
Spotify is the thing that allows me to go to work because it's the only thing that can help me overcome my agoraphobia enough to get there (have to walk and take publix transport, can't afford a car and am too terrified to drive). Cutting it out is not an option, even though I have considered it
What about CZcams? I’ve never used Spotify I have always listened to my music on CZcams and refresh the tab to skip ads
@@anastasiya8314 CZcams drains data because it plays videos, and I don't have unlimited. With Spotify premium, I can download and listen to it without ads and without using data. CZcams is fine for when I'm connected to the Internet, but not when I'm on the bus
That's the same when people say you should save around 20-30% of your salary to invest, some people just don't earn enough to be able to do that and it's not because they go out for dinner or buy expensive clothes.
When the whole student loan debate first started I had a disagreement with someone about this. I suffered to pay off my loans. I wore mittens in my apartment so I didn't have to turn up the heat and ate nothing but potatoes and ramen. I still wanted loan forgiveness to go through. The other person couldn't understand why current graduates shouldn't suffer like I did. I asked why would anyone want another living person to be cold and hungry?
The people who say “fuck them, they can suffer like I did!” obviously never suffered.
Those people are lying/cosplaying.
No one who actually suffered says crazy shit like that.
I got sick of those people and just tell them to prove it now. Prove to me you suffered. I don’t believe your tall tales.
Usually then they admit mommy and daddy helped them out, but their FRIEND who suffered blablabla…
I am making double what i was this time last year. I'm still living at home. I still have no idea when I will be able to get out. I'm thankful for my father who is allowing me to attempt to get out of the rent race. I'm literally trying to buy a camper so that I can own a place to live.
YES! Being poor IS more expensive than being wealthy. When you’re poor you put off fixing that weird noise in your car, getting that toothache checked out, or fixing a leaky faucet because you literally do not have the money in your bank account to do so. And then those become bigger, more expensive problems down the road. It’s a vicious cycle that no amount of budgeting can solve.
Budgeting is key, as is learning DIY skills. A pipe wrench is a one-time expense.
Massive dept is one thing but combined with high interest rate breaks your neck. it is such a huge difference between 75.000 and 1,5 % and 75.000 and 8% (between 1.125 € and 6.000 € per year in interest. massive dept is not nice but the interest rate can make it so much worse and trap you forever
Also: You have to have that little splurge thingy in your life, whether it's Netflix or whatever. Just one thing is enough, because it is well-known that it helps improve your mental health as you still get a sense of belonging in society and not being outside of society. I wrote a book about poverty, the endless hurdles in job hunting and the effects it can have on ones own mind. It's called "A Life's Worth: The Life of a Nobody" by Katharina Hawthorne.
Penny pinching can’t get someone out of a debt so big the interest is more than they can possibly save, but it can go a long way to becoming less “poor.”
I know a lot of middle class people who are “broke” because they spend too much money on crap they don’t need. They act like they’re poor because they can’t afford to replace a crapped out appliance when they’ve got several streaming services, unlimited data on every family member’s young cell phone, and frequent eating out. They *can* afford it, but they don’t want to, so they put the appliance on a high interest credit card, which generates debt.
It’s a lot easier to spend your way into poverty than it is to save your way out of it (the latter sometimes being impossible).
but professor, you don't understand. telling poor people to budget and cut out all the frills is how we keep them poor AND miserable, and isn't that what america is all about?
Caleb Hammer's financial audits are pretty solid. the points that he makes is that people spend on little ones and twos, and at the end they've spent 1000 a month on eating out and subscription services. your response to this is totally valid, but I recommend watching a longer one to get a better idea of what he's really about. He might also piss you off, but that's kind of the point.
i am not in debt (well to banks. i cant give back to my friend even if i thought it would be month thing i think i can't do it for like half year). but i can't go with spotify or avocado because i just don't have money on that. even on not not-ad spotify like usual spotify so i listen music on youtube. and i literally can't buy one avocado.
but this video calmed me down. i spent more on food than i though i will (and probably was tricked by vegy seller once) and i was so angry on myself for "spending" this money and not calculate strong enough. But now i see that it is not my fault that i missed some numbers which took like, i don't know, not much more than one dollar and now i am hungry and can't get work because i can't post my art which is my income because of social media "bag"
Cutting out all the joy, but still broke and in debt.
What you're saying is true. However, I don't know if you watch the show, but he does tell people to earn more - to get a better job, a second Job. If they're already interested in education he does encourage them to go to college
This is just one of the tips he gives. He tells them they need to work more / different job, possibly different career. Then he also tells them to, yes, stop spending on a lot of little things. He offers to pay for IT certifications for them. I don't know anything about the certification program he partners with, but he goes through quite a few options
I believe the person he was interviewing in the video had every intention of finding a job in their field, and quite possibly earning at least a modest income. There are others who, we see over and over, get a degree and don't use it, they go get a minimum or close to minimum wage job. They put tens of thousands of dollars in small purchases or even in large purchases on credit and are drowning in debt
I'm just saying, he often has reason to be concerned, to push them, and to try to get them to see that their spending result adds up. I enjoy your videos, have a great day!!
Thank you so much! It's been so depressing to have made $400 mon payments faithfully for 10 yrs and not see my debt decrease by even a penny! I haven't been able to get a wage increase that kept up with the price of living. I've had to abandon ever owning a home and my 2 kids shouldn't be treated like a luxury by society.
You hit the nail on the head! You can't budget your way out of poverty, but if you are using credit cards while in poverty, and yes they will give them to you, then you will only make your poverty even worse. The only way to get out of poverty is to change what you are doing. You have to make more money. You still can't afford to be spending on things that people who are the above the poverty line spend money on. I am currently on disability which definitely puts me below the poverty line. I am working to get off of disability because like I said, I have to do something different and I can't afford to live on it. I don't own a TV. I don't pay for streaming services. I don't eat out. Doctors are always wanting me to get out and go to meetups and do fun stuff, but they don't seem to understand, that I live below the poverty line, and I have to live by a budget. I can't just spend money on things that I can't afford. I am hoping to have a job in the next few weeks or so, and start to have money to drive my car to the park. To be able to actually buy a used washer and dryer! I don't have the cheapest cell service, but I do have one of the cheapest phones. I can't wait to start being able to go to meetups to meet other people, and do a few fun things. Even then I will have to live by a budget.
Not even Dave Ramsey who is hard ass on debt will tell someone they can budget their way out of debt or poverty. He will literally tell them they need to make more money. If he sees this, then people like this guy should be seeing that too.
Also taking time to take care of yourself, buying shoes that can help you walk further, and clothing that makes you feel confident in yourself, can help you easily move up in the world.
Agree 100%. When your rent is so high, plus utilities, food, gas and everything else. You just end up barely getting by and in horrible debt. This is how so many Americans are living unfortunately
i can live without spotify premium i just use it on laptop only and then use youtube or download my music for free, and in my head if its 10 a month thats 120 a year which is insane for music with no ads
Nevermind that giving up those little things isn't gonna make a significant impact on massive debt of the bulk of your income is AJAY GOING to bills anyway.
But also, I have this idea, and it's a little crazy so bear with me here, that people actually deserve to ENJOY their lives. Not just scrape by going little more than surviving.
Little deserve to feel good in what they wear, deserve to do things that are fun, deserve some joy.
You should be v ALLOWED to get some fun snacks, simply because they're tasty, instead of just eating the most basic, cheap shit. You deserve to wear fresh clothes that make you feel good, not threadbare rags that you're trying to squeeze every last ounce of life out of before you replace them. You deserve to just enjoy listening to music on Spotify instead of constantly being annoyed by ads. And you deserve to go out every once in a while, go to the movies or go do something with friends. You deserve to buy yourself a treat once in a while, simply because that little thing, whatever it is, will bring you joy and make you happy.
What's the point of your life if you're not even really living it? If you've cut out every ounce of joy, fun and/or happiness?
I don't care of someone is poor or why. That person still deserves to enjoy their life. Should you go crazy and never save, spend money like crazy and wrack up even more debt? No, obviously not.
But when your favorite artist ever comes some and you wanna go see them sooo bad, should you spend that $200 on tickets, even though it's not in the budget and won't help in terms of lowering your debt? Yeah, you should. Because life shouldn't only be about work and money.
People deserve to enjoy their lives. And it's fucked up that we live in such a broken system that there are literally people out there who have to cut every ounce of joy out of their lives, just to get by.
I learned very recently that we weren’t overspending when we had young kids and were racking up debt. Unless you count not living in a mouldy home or having our kids in safe child care as overspending.
We just needed more money and that didn’t happen until two years ago.
Same goes for homelessness. I was a homemaker for 18 years of marriage. I have had trouble finding work I can physically do enough of to earn any kind of living. I won't go on about falling through the cracks of a broken system that (at least) helps (a little.) I don't have debt to speak of, because I have no credit card. I keep (foolishly?) hoping that I'll somehow find a job that will be enough to at least qualify me for a housing assistance program. (Because yes, you CAN be too poor for a lot of them!)
It's the same here in the UK. Doctors and nurses study for five years or more, accruing MASSIVE student loan debts, so they can be in a career that SAVES LIVES. And when they graduate, they're paid an absolute pittance, unless they decide to defect from the NHS and work in private hospitals. Footballers can be paid in the region of £6,000 PER WEEK just for booting a ball around a field, while a nurse with several thousand pounds of student loan debt behind them after years of study, to qualify for working 40+ hours a week, would be lucky to earn even HALF of that in a MONTH.
I got out of massive, MASSIVE credit card debt by filing bankruptcy when my really good paying job laid me off. The next job I got paid significantly less but it felt like a LOT more without the debt.
I LOVE that channel - but you're right. He makes me think about things but I can't budget my way out of educational debt as a government employee.
Thanks Reagan. I did the same thing to get out of debt. I got out of a bad relationship and had credit card debt, student loans, and needed a new car. I went without for a few years working two jobs and picking up any extra shifts I could no internet no smartphone. I know it doesn't work for everybody but I was fortunate.
Spent my 30s getting out of debt. After 20 years of working and student loan finally paid off, I had a child. After 6 months of maternity leave I was handed several thousands of dollars of debt in taxes I somehow aquired while not working. The debt roles in anyway. Never had a lot of money and still don't.
I consider all these little things that are not that expensive and don't add up to significantly prevent me from paying bills as part of the "Mental Health Budget"
If I am depressed one day and a Starbucks makes me capable of functioning, that is a win.
If I am stir crazy and taking a friend out for some cheap appetizer at a favorite spot calms the indomitable urge to distract myself the rest of the day, then that is worth it.
If the purchase in question can be moderated such that the net productivity it provides is significantly positive, it is an INVESTMENT, not a COST.
What is not "worth it" is cutting out all the little hacks I have to use to make my brain say "Okay, let's do this thing" so that my brain never gets shaken out of the rut of "I'm poor and thus worthless"
Or you could call it "gIrL mATh" or any other excuse! Spending on "self care" BS is BUYING you the continued stress of worse and worse debt!
Hi. We really enjoy your content. Great job. If remembering correctly, you are a teacher, right? If you work for a public institution, you can get your student loan(s) forgiven. Please contact the federal student loan department (not the company that’s servicing your loan or that you make payments to). “You deserve a break today” but seriously…please get the unadvertised benefits for public/federal/state employees.
Community College I believe.
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Add a time I was drowning in debt, mostly credit cards with insane interest, I only got my head above the water by getting into a $10k medical study by lying about my health so as not to be disqualified. It was dangerous to do that but I genuinely felt out of options
It's heartbreaking... 💔💔
And thank you for sharing your personal experience in this talk, Speech Prof! You are strong person. I wish you all the best!
I totally agree with you. Even the professor at school says a person cannot even think of investing to grow wealth until they have their basic needs met, i.e. rent, food, transportation, clothes, phone & medical expenses.
That's like telling me the $6 on fries I spend almost every paycheck or that one Boba every 3 months is what is keeping me from being able to pay more than the min on my bills, buy a house, or concert tickets. No. No, it is not. It's the fact I don't get paid enough for the things I NEED: a car that runs reliably to get to work ((no public transport where I live), a phone for work and school to call me, rent (already the lowest around), loan for the car (because I needed something more reliable than a KIA with a cracked engine block), and my student debt. That's just how it is. I need more money, budgeting is keeping me afloat, not helping me save.
Learn to cut up a potato and fry it. You are a grown person! 😂Change your own oil and D.I.Y. your own minor repairs.
Every dollar you spend paying back what you owe decreases the accumulating interest. You're buying yourself the stress of accumulating debt with every $ you waste!
Preach! And we keep getting gaslit into pennyhoarding when it's super clear that we all deserve better!!!
It really depends. There are some issues with Caleb, mostly the screaming and the thumbnails, but this is not one of them. He always calculates necessary spending vs income. There were several times when he said that the income is just too low. But usually his guests - which are not representative of all poor people - just spend way too much on dumb stuff, or don't understand finances and hence make dumb decisions. There were many guests whose income was enough to support them, like 100k/year with no kids etc., but they still lived paycheck to paycheck because they spend like 2000/month on eating out. Or they bought some car they can't afford. Etc. You trying your best to be smart with finances and failing to make a dent doesn't mean the advice of calculate your budget and cut out things you don't need is not relevant. You just need to actually calculate it first, what is causing you trouble: income or spending (or both).
You can't budget yourself out of poverty but not every paycheck-to-paycheck is poverty. And you can see whether you are in it or not by calculating your budget. And even with low income sometimes cutting out some spending moght help you get a basic emergency fund that will save you from spiralling financially later. But you can calculate it before you cut out your sources of happiness.
Okay, yeah? But this is not what Speech Prof was talking about. In this example, he is blaming someone who has crippling debt that will only be paid of by pure luck for spending 10 dollars on something as simple as Spotify. No amount of cutting 10 dollar spendings out of your budget will get you out of crippling debt. The system was made to keep the poor in their positions, and that's what Speech Prof is talking about. Not people who are bad with money.
@@Dragonkitty_101but that is who the person who he is responding to was talking to.
Thank you, Prof. This is why I cringe every time I see these videos. Finfluencers telling poor folks they need to cut back while they’re making massive amounts of money on their backs is gross.
I'm currently trapped in poverty, with no real access to education and chronic illness. I'm barely capable of doing the labour available to me, its not sustainable, and it will never pay rent. I've heard every line in the book at this point, and it's because it's easy. It's easy to pretend like poor people are stupid and lazy and those 10 dollars are gonna get you into heaven, rather then recognize that everyone who isn't stuck in the underclass is lucky. Everbody works for it, the only difference is a coinflip.
Poverty is not a lack of character....it's a lack of cash.
Yes, this. So well said. Thank you.
Thank you for the straight up honesty
I had a tremendous loan debt, much difficulty paying but I was paying. Job based on my degrees, teaching civics and history. Car accident, TBI, coma, years of memory lost. So now I have enormous medical bills. I did a budget and asked my parents if they would pay my student loans then I pay them without interest. They knew I couldn’t hold a job teaching any more and few places wanted to deal with that gap in employment right after college. Give them an explanation and they don’t want to deal with their opinion of brain injury. So I was able get a lot of medical bills reduced and insurance pay off. Paying my parents slowly, I started my own business because of my issues working with others due to brain injury.
Amen. I couldn't have said it better, thank you
I remember this one twitter post I saw recently that stuck with me.
I don't remember the exact words so bear with me but lmao
It said "How I became a millionaire working as a tech guy"
Step one- Got the job
Step two- Put in extra hours
Step three- Got run over by the company bus and gained 2 million dollars from the lawsuit
Step 4- Got another raise
And it just really puts it into perspective how you don't get rich through working. You get rich through getting lucky (or, unlucky in his case. But as far as I know he managed to walk away with minimal long term injuries)
I remember once during a zoom meeting at an old job, my boss got on a rant about how eating out and Starbucks and Netflix were the reason people couldn’t get out of debt and he was going on and on and a really good work friend messaged me “Do you think he even realizes half his employees are living paycheck to paycheck?” And we were all very well-paid for what we did. But there’s also the economy to consider. No amount of skimping on the little things is gonna matter when your rent goes up 35% and gas is $3.50 a gallon
Thank you!
Um, so, first generation college student here with a bachelor's and master's degree. First of all, can we just agree that Caleb Hammer is a giant tool? He is not there to give out sound financial advice, he is there to be the Jerry Springer of personal finance. Second, some of what you say is true, but let's not make things more hopeless than they need to be. I finished college with less than 10k in student loan debt. Same for my masters. If I had the information that I have now, I wouldn't have even done that. Yes, more money is necessary at some point, but more than that, financial education is vital. If you don't know how to manage your money, it won't matter how much you make. Recognizing that someone is making poor choices is not the same as judging them. I took financial coach training in order to help other people from low income backgrounds make more informed choices. From what you say in this video, it sounds like you could have benefited from more guidance in that realm when you were younger. I know I sure could have.
I have listened to my mom last weekend telling me that the reason I'm in the negative every single month this year is bc i got a nose piercing and occasionally dye my hair funky colours (box dye at home, not at a salon) while she's the person providing me with only 70% of *the minimum* that is officially suggested in our situation and arrangement. Also completely ignoring that I've been fine the 2,5 years living alone before, actually was slightly saving up money, while having had the exact same livestyle, maybe even a bit fancier before, and that most of this is just everyday expenses and inflation there. I'd be absolutely fine with the official amount of money and could live comfortably. I broke it down for my sisters bc they questioned me if maybe I'm being unfair with our mom, turns out after rent, food, clothes, transportation, household expenses, fees for beaurocracy, I'm left with 20€ of monthly spending money out of her budget. And im in a pretty wealthy state in middle europa, am privileged enough to go to university and don't have to worry about student loans and healthcare costs like in the US, and this still is an absolute hellscape.
I had to take an economics class when I went to social work school and the professor said cable was actually a cost-effective form of entertainment for a family who was financially strapped/burdened with debt.
I feel immensely privileged that I never really had to struggle with money and grew up in a country where you can actually afford going to university..
What helped me most though, was that I grew up in a very basic working class household. Never no money but never much too. When I went to university my dad was even able to support me a bit when I started living alone but a couple years in I was also lucky enough to be able to lend a bit of money from friends, i.e. no interest. Since then I live pretty stable financially and paid the money back years ago.
But I notice still with friends who didn't grew up like me or make way more money than me how horrible they are at budgeting (looking at the two friend couples planning their wedding). And also how little understanding they have around not everyone being able to just go along with any activity/vacation and e.g. splitting the bill at a restaurant, when you specifically order something that's cheaper.
Honestly can't imagine how that must be for people in massive debt. I wish you all good luck, that the US finally gets its shit together and abolishes student loan debt - among other things.
I always thought I was just crap with money. Wasteful or something. But you cannot put any money buy, when there is never enough to go round in the first place, andtaht only for the cost of living, not for fancy clothes, holidays etc.
Then I got a second job and suddenly I was able to save some money. Consistently. Not as much as I would have wanted, because there was always first the hole to fill taht came from the cost of living, but the rest I was able to put away.
Saving is all well and good, but you can only do that if you have enough to cover your daily expenses AND THEN SOME.
Went through a tricky divorce a few years back, which resulted in me taking on more expenses. Obviously, some of those bills (groceries) went down, but at the end of the day, a much larger portion of my income was going to things like housing than before. Like you, I really cut down on things. To be honest, I think I learned some good life skills in the process. But there's really only so much you could cut back. I remember sitting down to go over my finances one weekend and realizing that all of the money I had saved by painstakingly air-drying my laundry that month had basically been spent by going to Burger King after a rough day, and burst into tears. Ultimately, what put me in a better place was getting raises. When you can save a chunk of change by cutting a whole bunch of subscription services you're probably not even using, then that's a spending issue. When the "issue" is a ten-dollar Spotify subscription, that's an income problem. I did get bonus financial anxiety over the whole situation, which was fun.
Ah yes, the fabled American Dream: Work hard and Be Good™️ and you too can become rich!
And of course its very damaging corollaries:
1) Wealthy people must then by definition be the best people and the hardest workers (& we must worship billionaires because they deserve it)
2) Poor people must then by definition be terrible, lazy people who deserve to be poor (because if they were better they'd be rich)
2a) Except when we ourselves are poor, because we are obviously not a terrible lazy person but a good and hard working one, so we must be a future wealthy person who just hasn't made it yet (and therefore we must protect the wealthy class we will one day be a part of)
In reality of course social mobility like that is all but nonexistent in the US.
All the advice to cut back on spending in order to get out of debt or save money isn't actually advice for people in poverty. It's advice for people with a decent income who are living beyond their means or have significant debt. That group of people is bigger that you might think it is, but it's not the $10 Netflix that is breaking them. It's not knowing that their ISP, car insurance, and phone provider are raising rates on them constantly and if they switched they'd be paying a lot less. A significant number of people I know who live with poverty wages already know that and don't actually have Internet at home because they can't afford it, may not have a car at all or one car shared with extended family, and their phones are their lifelines and only tech related expense.
Thank you for your videos and your nails are on POINT
This kind of super thrifty budgeting actually saved me for maybe 4-5 months in short-term when I was very poor, and had a really, really bad time because of like an unexpected vet bill, or broken appliance. But it seems so ridiculous to consider in the long-term. And I was almost always job hunting for the next way to improve my scenario. It's so stressful.
When I was first a single mom, age 20, very little support, I experienced this so often. My stepmom, a bookkeeper by trade, would often recommend that everything would be easier for me if I just budgeted. Then she did my taxes and was absolutely befuddled by the number. I _grossed_ $11,000. When you are choosing between phone and electricity on a monthly basis, there is no budget that will solve that problem.
I remember this clip!!!
I didn't like how he judged her for the one thing she kept to make her sane. Actually, this was something that happened to me in a previous relationship in which I was in debt but I was paying down everything consistently and put some money to the side for myself. I budgeted a day for my friends and then I got chewed out for wanting to buy myself something to drink at a store because I was not working and $4 was something that I apparently couldn't afford 😕
It was degrading. Yes, little things do add up, but if you're already doing due diligence, then I don't see having one thing that keeps you happy and motivated.
I don't think I watched anymore of his videos after that one.
You don't understand. Those 12 extra bucks a month really add up. That's 144 dollars a year! You could pay a third of July's electric bill with that kind of money. Or even alcohol to treat your self inflicted crippling depression!