Harvard Professor Reveals the Worst Thing To Do with Your Money
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- čas přidán 20. 06. 2024
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About this episode:
Does money really make you happy? In this episode, I’m joined by the brilliant Arthur Brooks, who is helping me answer this age-old question and offering insights into the complicated relationship between wealth and well-being that might surprise you.
Next Steps:
▶️ Watch “Agree To Disagree | The @MinorityMindset & Humphrey Yang (@humphrey)”: • Agree To Disagree | Th...
📚 Pick up a copy of Build the Life You Want: The Art and Science of Getting Happier co-written by Arthur Brooks and Oprah Winfrey: www.amazon.com/Build-Life-You...
🗞️ Read Arthur’s article in The Atlantic, “Why You’re Better Off Not Borrowing”: www.theatlantic.com/ideas/arc...
📗 Order George Kamel’s new book, Breaking Free From Broke: ter.li/fghj
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This episode is sponsored by Tello, a mobile service plan designed to save you money. Go to www.tello.com/George for $5 off your first month of Tello’s unlimited data plan.
Listen to more from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/nrgexc
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🍸 Smart Money Happy Hour ⮕ ter.li/ruezqk
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🧠 The Dr. John Delony Show ⮕ ter.li/sii4ha
💼 The Ken Coleman Show - Highlights ⮕ ter.li/nbekmn
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My outlook on money changed when I realized someone making $300,000 can retire broke & someone making $80,000 can retire a multi-millionaire. Living within your means and living a frugal lifestyle is the first step to financial independence. I just hit the one million mark last year, cheers to everyone striving to get there someday.
Wow! Congrats on that. Is it preferable for me to save money or allocate a significant amount of my salary to stocks in order to accomplish this goal?
Varied sources of income is wise and especially living within your means. My net worth is over $1M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
Although financial advice is arbitrary and what works for one person may not work for another, planning is always preferable. I consider myself fortunate to have been introduced to personal finance at a young age. I started working at the age of 19, purchased my first house at the age of 28, was laid off at the age of 36 during the COVID-19 pandemic, and immediately sought advice from an advisor to manage the expansion of my finances. After further investments, as of right now, I'm only 25% short of my $1 million target.
This intrigues me. I've looked up financial advisors online, but finding one to connect with is a bit difficult. Do you mind if I ask for your recommendation?
Well, I chose Kristin Amber Landis as my advisor after her interview on CNBC In 2020. She is SEC regulated with offices in the US and quite frankly a genius with portfolio diversification. You should look her up
His confidence and how he holds himself is admirable
I say this as an individual (but married for 39 years) for a long time we lived paycheck to paycheck. Finally, that day came where we had this feeling that we needed to make financial freedom a top priority. This meant getting on a budget, paying off debt, having a cash savings for the unexpected, saving up for big purchases, assigning a job to each dollar and investing. We simply made too much money to be living paycheck to paycheck. Now that we have achieved a measure of financial stability, I find that it is true that putting $500 in savings makes us considerably happier than spending that money on something we probably don't need. I really can't brag to my friends and co-workers about the wonderful experience of being debt free, owning our home mortgage free and clear and having a few dollars in my wallet to spend on anything I want. So, I have to keep my happiness to myself but I'm up to the task.
Refreshing to hear this ❤.
My dream
Writing a check (anachronistic, I know) to yourself instead of to X, Y, Z corporation is SUCH A GOOD FEELING!! Getting to a place where you can do that takes time for most people. Teach your kids financial principals, people. The sooner they get there the better!
I say tell it!!! We overcome by the blood of the lamb and the words of our testimony. Someone will NEED to hear it. 😊😊😊😊😊
I loved this on many levels. As a person who retired from the military, and about to retire for the second time, I realized later in life debt is slavery and I can be happy with less. Amazing show.
Arthur was my professor at Harvard, he is the boss. So happy to see him together with the Ramsey team.
His dad tithing before taxes instead of after taxes “just in case” - I laughed out loud! Love it.
I always tithe before taxes because the Bible says “first fruits”. To me that is before taxes.
After the birth of our kid, one of the greatest moments in our life was paying off that mortgage there’s just no way to explain how sweet life is when you have no debts whatsoever on anything along with a fully funded emergency fund you kind of feel invincible to life’s daily hassles, in a funny kind of way.
I very rarely hear of anyone who regrets paying off their mortgage.
So buying that Ford Raptor while working at McDonald’s is a bad idea. Got it!
Used Raptor, McDonald’s CEO
😅😂
Gotta drive a massive SUV around the rugged, untamed wilderness of Manhattan, NYC to show everyone how impotent you are.
Money can't buy happiness but it gives me great joy to pay my bills and do what I have to survive with my money. I don't know if you want to call that happiness. But I've become happy every time. I use money to solve a problem in my life. So money does not guarantee happiness. But it sure makes me happy many, many times a month when I take care of business.
@@WilliamMartinez-vq2bn I agree, it can help achieve a life where you are able to pursue the things in life that make you happy. Such as time with family, travel, hobbies, etc.
It feels good to live within my means now. Last week I took a short trip to Orlando with my girlfriend to see a concert and go to Icon park. I just paid cash for a new car a few weeks ago and I miss seeing the actual progress I made but I'll get my next goals lined up here soon. I just got back from a doctor's appointment as well. I'm glad I can take care of my health too.
get rid of any unnecessary purchases, especially things that cost you monthly or better still, consider financial planning
Exploring the high-stakes world of day trading reveals a blend of risk and reward, where strategic leverage plays and timing during market fluctuations can lead to significant gains from minimal investments. This approach emphasizes the necessity of careful risk management, including setting stop losses and technical analysis, to navigate the volatile markets effectively.....managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to *Julia Lembcke*, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Thanks for the reference
Ohh great! How do I get a reach to her?
@JULIALEMBCKE 💯 ..that's it
SCAM ALERT!!
I live in Boston and once complained about our "worst" weather to a coworker. She casually mentioned she was originally from Siberia. 😳 Boston, you're off the hook!
😅
I live in Boston as well and we have beautiful summer ☀️ weather. Snow ❄️ hasn't been that bad in recent years. 😊
@@sunnyd4734 It's really been a shame-- summer gets too hot, winter isn't nearly cold or snowy enough. Still got plenty of rainy days unfortunately.
I may be overthinking, but I believe he’s done a lot of research
It is good to be reminded of this. I have had no debt for the last 25 years. It doesn't move the needle for me like it used too but when I see these shows it reminds me why I lived this way.
Took a step back from my previous career where I went from 230k to 120k. Went from 11 hours of work to 6 hours of work and relaxing on the weekend. Love it!
Did same thing went from a 180k job traveling to a 110k job back in nc where cost of living is cheap, home everyday weekends off moved back to my roots after military and chasing money.
@@terrencemcphail5782 Nothing beats:
- Restful night
- Mental Health
- Not hearing Teams messages every 5 mins
- Enjoy a 1 hour break
- Not to constantly regret working every single sec
- Not having to dread Sundays nights
- Not sleeping in on Saturdays to recuperate
- Not drinking yourself to numb the pain
@@terrencemcphail5782 can you guys tell me what you all are doing. I’m young and trying to figure out a path for making a living myself. Still in college, uncertain about the specific degree lol
"Life is not about finding yourself. Life is about creating yourself." -Lolly Daskal
George, I like your videos. Even when they're the baby steps formatted for audiences with tiktok length attention spans. I LOVE your videos where you are sitting down and chatting with experts. But THIS video is just phenomenal. The information is life changing, validates the Ramsey plan... Wow. Thank you to you and the team for bringing us HOPE
Yes!! I love the longer formats!
@@vanillasunrise1absolutely! Could've listened to them talk for hours
They are skewed to getting people that will say exactly what Dave Ramsey wants them to say. No one that has a minimal criticism to Dave’s baby steps will not be invited.
Remember Dave has made a living for 30+ years with those flipping baby steps.
This time last year I considered getting into index funds and ETFs without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year down in, I truly cannot stress enough how helpful experts in this field are!
To be honest, I've had a hard time grasping the basics. What insights did you gain, and how are you doing it?
It’s not rocket science. I got into index funds, and ETFs, myself but wasn't getting the results I wanted the first couple of months. Got tired of taking losses and decided to seek mentorship from Jonas Herman, a certified fiduciary who helps oversee my investments for the long term and has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my investment decisions align with market dynamics for optimal profit.
Sounds like I need help so bad. To me, investing is not worth it and I know that's the same mindset holding me back from taking a step forward.
I have learned that when it comes to money, people often mistake hubris for actual knowledge. And this, unfortunately, hampers rational decision making. Jonas is one of the bright ones providing me with a great deal. Investment strategies are just one of the many components.
@@Baptisizm I'm 44, I hope it's not too late for me. Is there a way to learn more about his service?
Im 42 unmarried, no kids. Back when I was 39, I reached my goal to pay off all my debts, including my mortgage. I started making 6-figure income immediately after reaching my goal. I quit my job a month ago to start my own business and travel more. Im attending church more life is great. My next goal is to find a gal to marry and start a family 😊 I enjoyed watching this ☺️ Thanks!
Loving your goals !
How long did it take you to pay off your mortgage?
@18:43 I asked myself the same thing about you when I found your channel back in April of 24. Since finding you, Rachel and Dave Ramsey. I've completely changed my life for the better and you all have even motivated me to start a CZcams channel trying to pass on everything i learn from you all. One day I hope I can get the chance to meet you all. The life I'm creating for myself wouldn't be possible without all the knowledge I've learned from your whole tribe. Thank you from the bottom of my heart. You guys are changing people lives everyday, I know this cause you've changed mine! Thank you!
Dave too?
@@mandypdx of course
I don’t know. I rarely buy stuff, but when I do buy I tend to be happy. Sometimes it’s momentary, sometimes I just feel good enjoying the stuff I’ve bought. It’s not everything, but there is some happiness there.
I actually didn’t like my honeymoon & it was dirt cheap.
But I was thrilled that it was dirt cheap because then me and my 20-year-old spouse were able to buy a duplex six months later
Now we own three .
Sometimes experiences are not worth the investment
Most people find that their "experiences" are totally worthless when they try to sell a few to come up with enough money to pay their rent at the end of the month.
Owning a home is a wonderful experience! And having a real estate portfolio, once again, great experience.
As a homebody that hates traveling and the travel industry, I don’t relate to the beach/couch story at all.
Yeah like if you like video games a lot, what's wrong with buying a lot of video games ? If it makes you happy then you do you. Buying video games or buying toys if you are a child with money makes you happy.
Agree. I would have brought a couch. Thats essential. The beach trip is a want.
Same! I hate traveling. Correction, everyone hates traveling but they won’t admit it. Have you heard all the horror stories people have returning from vacation? Lost luggage, sickness, injuries.
You don't have to travel , it may be an experience on an anniversary, like going to a concert or a game. That memory will stay longer.
Wow ! A professor that actually makes real world sense with many of the things he speaks of but not all of it. A rare occurrance.
We all know PH'd stands for "Poor Helpless & Deperate" which describes 99.9% of those with a PH'd.
He made me grateful I have a boss I actually like. We work well together and what I do helps his job immensely and I guess I get gratification out of this
Arthur's focus of a happiness mindset being regulated by your brain is spot on for decisions of being debt free and living below your means
I’ve been telling EVERYBODY about this channel! George, you’re an ALL STAR! This entire video was LEGENDARY!!! 💪🏾
It’s Proverbs 11:24, to receive back more than you give
What about spending all your money you don't have with your beloved's on booze, food, smokes, and gambling in Vegas? That is an experience you will never forget, or maybe not remember.
"Trust because you are willing to accept the risk, not because it's safe or certain." -Motivation
LOVE this!!! Now I’m going to binge all the Arthur Brooks videos. Rock on!
5 Things To Do With Money
1)Buy Things
2)Buy Experiences
3)Buy Time
4)Give It Away
5)Save It
I invest my money to make more money. I dont buy anything LOL.
@@philiptran617 Doesn't that mean you buy assets or pieces of companies? 😅
@@EmilyAllan didn’t he refer “buy stuffs” to buying things around you that later on not making you happy? I invest in assets that make me happy. 😄
Buy things. I buy stocks and ETFs 😁😎
@@philiptran617 investing is buying things 😂
Love you George!!!!!! ❤❤❤❤ good video!!!!!! More of this please. All my respect to Arthur Brooks!
Great interview - thank you for sharing
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
I know this lady you just mentioned. Abby Joseph Cohen Services is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. Abby Joseph Cohen has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
How can i reach her, if you don't mind me asking?
Well her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Abby Joseph Cohen. I am at $128k right now and LOVING that you have to bring this up here
Abby Joseph Cohen Services has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's.
One of the most enlightening 30 minutes I’ve ever watched. I’m looking up this guy’s books rn
If he doesn't have any memories with his wife on that couch, he didn't do something right.
His wife wouldnt be too thrilled to make any memories on that couch because they didnt go to the beach
@@jesssc402😂😂
He only had the one couch and it wasn’t the most expensive one.
😂😂😂😂
@@jesssc402😂😂
What a Fantastic Interview George and Prof Brooks! Thank You!
LOVE this interview videos 👏🏼
Thank you for the awesome and hopeful interview.
"If money can't buy happiness, I guess I'll have to rent it." - Weird Al Yankovic
Love Weird Al
😅
Shure go Leasy a Big Car 😆😆😆 it's cheaper LOL
Loved this. And loved Arthur Brooks! What a gem of a dude. He's right about the four investments: Faith, Family, Friends, and Work. Thank you for this content!
Great interview and message!
This is a great episode. This guy is great!!
Correlation is not causation. People who give more are already in financial privileges, it is not that once you start giving more you get rich
Excellent conversation. I appreciate it!
Great episode. I love this guy!!!
This is actually true in my case. During the pandemic when all were uncertain, just by having no debt made me less stressed out with all the happenings and lockdown.
Great show. I’m saving this one to watch later
great sharing as always. love this a lot!
One of my fave episodes so far ☺️
Fabulous! Thanks for sharing
I don't have the words to explain how important I think this video is.
Great interview !
$75,000 in 2005 is around $120,610 in today's money.
In Frisco tx it’s $520k😊
The fact that fewer and fewer people are marrying and having families is going to have a HUGE long-term effect on how people save and spend their money because a large segment of the population will have no incentive to care about transferring their wealth to the next generation. For people like me, who have no family, the advice to save out of love for your family makes no sense. And, people like me are a quickly increasing segment of the world’s population.
Excellent discussion/interview!
you've outdone yourself george. this is cray good.
I bought Tesla in 2023 Y for 73K in Canada, got tired of payments and sold it for 10K loss. Bought 2014 car and paid cash. I didn’t take 10K loss, amount of interest I will save, and car payment, it was the good decision I made.
I invest in real estate and was worried about this video. It was actually quite refreshing. The Dr. clearly understands the differences in debts for investments and non-investments. I took down several notes, thanks for having him on.
Amazing guest , thanks so much for the video.
Can we choose to be happy with what we already have?❤🎉
I’m sending this to everyone I know. Excellent video
Thank you for the guest. Awesome knowledge. I am about research and learning. At 67, I gained knowledge and applied past knowledge. As I age, I can finally share my knowledge, and it feels awesome.
The clip of Dave right after 20:51 had me rolling on the floor
So what’s the moral of the story for students - don’t go to college if you need to take anything out in student loans? Or goto community college first? The message of “student loans conflicts with happiness” just doesn’t seem right
Thanks for the good channel George. 👋
“The amount of money you need to make to be happy” studies are so out of date… I think it’s more closely tied to housing costs than almost anything else. The ~$75 K amount is laughable if you live in Southern California 🙄
I’m 10 minutes in and this is an unbelievable convo! Thank you!
Great Video George!!
Give this guy a spot on the Ramsey show. So much good information.
This has been very very insightful
Best video so far, sincerely. This was a great discussion.
Love it! Great conversation.
Incredible video … connecting the dots on how we feel.
Incredible insight.
What a positive and amazing person - made my day ❤
TLDW ***Key points: Out of the only 5 things you can do with money, only 4 of them can buy you happiness.
1. Buy Stuff (worst thing to do with money towards happiness)
2. Buy Experience
3. Buy Time
4. Give It Away
5. Save It
What an incredible episode ♥️
Well, we book hotel, car and fly using PayPal credit card 0% interest for 6 months in every vacation. We have the money to pay all up front, but borrowing at 0% help us invest and pay our student loan debt more aggressively.
Also, human physiology with money is “the more you make the more you spend”. Stop impressing ppl, nobody care what you drive what you wear, live bellow your mean, save money and invest. Yes, it’s scary to not be “normal”, learn, knowledge is power. Finally, be aware of a lot of these so called experts, run away from those with a suit and selling you a fast path to be rich.
Great video!
Hmmm great talk. This covered all the important ideas but also was upbeat and humorous.
Absolutely fantastic!
I listen to these videos in the car and I was leaving tupelo when he said "tupelo mississippi" which really threw me off
George, you make so many people happy and I love your videos!!!
I needed this video two weeks ago before I bought my small used truck. I thought I needed a truck so that I could do yardwork. Take the grass to the dump do tree trimming and small projects around the house. This guy totally reframed it because the $700 a month I would spend on the payment and insurance and fuel could go to people that would do the things I needed done and it would free me up time. Wow, did I miss the boat on that one?
Fantastic video, George! My wife and I watched it and are planning to share it with our children (ages 23, 19, and 15) very soon!
Really good conversation
This is not just wonderful financial information but great life information too
This is one of the best videos you have ever done George!
One of the best episodes i ever watched. I really loved it. He dropped some incredible gems
He is the perfect guest for this show George. He basically aligns with all the Ramsey principles - backed with the science and psychological side of things. Let's invite him on the main Ramsey show - that would be great.
Sounds to me like the choice for the "beach vacation" simply showed how necessary the couch was... Ended up buying it anyways, resulting in "spending twice" 😅
My favorite episode yet❤️. This is so good 😊
This guy is amazing. Learning so much right now
Awesome interview.
Exceptional video relaxant for most cultures. Bright people working at brightening THE Path WE are all on.. And you know it!
7:45 idk man you can make a lot of memories on a couch
A man of Culture you are
2009 call of duty modern warfare 2.. alot of memories playing that game 😅
I have a lot of good memories on my couch, I have a lot of bad memories of the beach.
Go George! Love your style and your videos! Did you design your studio and attire yourself?
One of the best videos I've ever watched, hands down.
Love it!
I'm the type who would remember the couch 🛋....because I'd keep it for years! And remember all of the movies we've watched sitting on it...what an experience 😊