7 Spending Traps Keeping You Broke
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- čas přidán 24. 07. 2024
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7 Spending Traps Keeping You Broke
We all have at least one friend who’s all “B.S.” Yeah, I said it. . . They’re “Broke Spenders”
Today I’m here to save you from a conflict-induced panic attack by personally volunteering to call out the traps these B.S.-ers are falling for on behalf of self-aware, common sense people everywhere.
Links:
Budgeting For Beginners: • Budgeting For Beginner...
George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
When I began treating everything in my life the way I treat my sobriety ("I am the cause of most of my problems"), I started making progress in every area. 15 years ago I was an obese, unemployed, pack-a-day smoking drunk. Today I have a leadership career at a major institution, I am sober, don't smoke, happily married, and I run ultramarathons for fun. I've built wealth and am paying off a mortgage. All it took was recognizing that if I don't do it for myself, I'll never have it. And then making small, incremental progress every. single. day.
This is hard to believe. You might be exaggerating a little.
Inspiring...
@@juditharsenault2131 I mean I'm not married nor do I run ultra marathons. But I do work out and lost my huge alcoholic belly after I decided 2/2/22 to stop drinking and smoking cold turkey. And I've invested almost 30k between my company 401k and personal investing. And that's less then two years of growth. I could see being where he is at in 13 more years.
12and12
I’ve lost so much in the past 8 months from failed economy and banks,Real estate crash,depressions,stocks,dividend,you name it
What a terrible year it is...
This 100%. I hate the victim of the system mindset from people spending $80k on a car, buying every new Iphone, while working their Walmart store jobs.
Talking to a coworker yesterday about the importance of an emergency fund. He said he can't afford to save because his rent is $2500. I said maybe it's the apartment you can't afford. 🤷 He didn't like that 😆
I told a colleague, that she is not earning too little, but she is spending too much. She also didn’t like that 😆
@@asavannah7439both can be true tho.
My neighbor just bought a $56000 new mini van yesterday, they only have one kid , so I don’t know why they want to buy a mini van. They pay $6000 down payment and car loan is $50000 at 5.6% rate. Monthly payment is around $1300 for 48 months. I was speechless listening to these numbers. Guess what I told them? “ congratulations to the new car and it looks awesome! “ I was just want to be nice, if I told them you shouldn’t buy that car, they probably gonna hate me 😂because they seems very happy with that purchase and feel very excited.
@@bellabobbybob3476 Too many people do stupid things like that. Oh well, they're happy and luckily it's not our money. $1300 a month for a car payment would leave me sleepless at night 😵😱
That could be the cheapest he could find.
Eating and premade food are our biggest downfall. I have significant health issues, so meals fall on my husband and convenience is difficult to resist.
Love starting my Friday morning with your words of inspiration. Just got my paycheck. The old me would have had it spent on all that useless crap over the weekend. The new me just stuffed 95% of it into my "pay off the mortgage" funds. My mortgage will be paid off on the 22nd of this month. I'm getting ready for that debt free scream!!!
That's amazing!!
Great! Good for you!
BIG CONGRATULATIONS TO YOU!!
congrats!! just a few more days to go 🥳
I debt free screamed on 6/14/23. Have you had your moment yet??
I stay broke because I can't say no. I can't say no to me, I can't say no to my family. I am so tired of living this way. Love you videos and they are helping me make the mental shift I need.
You'll make it, bro! Start small, set yourself a goal to say no at least once a week, then maybe once a day, then maybe two times a day. It just gets easier and easier once you get used to saying it. Eventually you'll be saying no all the time.
Got to say “No”
Hi George. Much love from Ghana, West Africa. I love your videos. I am debt free with a paid off house in our insane 53% inflation hit Ghana. It can be done.
Cooking has helped a lot!! And when I’m tired and want to go out to eat all I can hear Dave saying “Oh call the wah-bulances” 😂😂😂 So I go ahead and cook.
I do love seeing my account not moving because we’re eating from home now.
I used to buy more/spend more than I really needed to on my wardrobe. It initially slowed down when I quit fast fashion but when I started thrifting only, That 3k/year decreased to less than $30O/y.
I've spent $0 on clothes the past 5 year. learned how to sew and just gorilla glue my shoes back together 😂
Plato’s closet has been clutch!
I spent about $3k on suites and other clothes last year. So far I’ve only spent $100 on Jordans that were half off. (Needed new shoes anyways)
I would do that honestly bc second hand stores are alright w me but I am just fearful of bringing home bed bugs
The main spending habits keeping me broke is trying to feed my family anything other than junk food, putting gas in my car to get to work, heating my home, and paying the electric bill.
My biggest trap was opening a student loan for a degree to get a minimum job after graduating. :(
George, when you said that the average 3 day vacation costs $1400, it spoke to me. My hubby and I budged $2000 for our trip to the Upper Peninsula of Michigan for a friend's wedding. We spent the most money on our hotel. We also boarded our dogs, factoring in the gift, food and gas, we spent a little over that $1400. I just defaulted to $2,000 when we budgeted and saved for the past year. That extra $600 stayed put in the sinking fund for next vacation! The saving continues. I used to go on vacation when I couldn't afford it. I 10/10 recommend fully funding a vacation. The peace of mind makes the whole experience that much richer! No pun intended. 🙂
Honestly, the ONLY reason (in my honest opinion) that vacations are THIS expensive, is the hotels. Airbnb prices are also insane (I should not be seeing so many 300+ a night, for A HOUSE) so I would honestly just go with staying at acquaintances or at a Hostel
Budgeted fun is always more fun than just fun! I was young and stupid in my 20's, driving financed cars worth 3x my annual salary. Now i'm 31, debt free, drive a paid off car worth 7% of my annual income and have a budget that allows for life expenses, fun, investing, saving & giving and I've never been more at peace! I'll be retired by 37 if I keep up with the plan!
Having the option to retire at 37 is very cool, good job. However retirement isn't all it's cracked up to be and people can and will come out of it due to sheer boredom. The real perk is financial independence and the ability to choose what exciting work and how much of it you want to do. Plus, if you continue to earn a tidy sum you'll be able to up your living standard when your body eventually forces you to retire out of lack of energy or you may even be able to fund retirement for other people in your family.
@IAmebAdger I don't plan on retiring, I love what I do and have my own business alongside employment. The day I don't enjoy it is the day I try something else rather than nothing. I may take career breaks to travel or whatever but yeah its nice to have mathematical retirement as a motivation!
@@trucker_lukew For sure, sounds like you've got your future figured out, good going
This man speaking like my dad did to me as a teen. All this is true and it works. I’m in great financial shape and I’ve never really made a lot of money aside from selling my houses for profit
The axe throwing reference killed me, no pun intended. How did that trend even happen? lol
Some great advice George. I needed to hear this when I was your age! I was the poster boy for "lifestyle creep". I agree you can't invest or borrow your way out of debt. If I had used all the fees paid to financial "advisors" to pay down debt and cut the spending for stuff I didn't need, I would now have much more financial freedom today. Now retired, but STILL have home ownership debt. The earlier in life one can be debt free, the better!
"It's not an ish-me, it's an ish-you." Love it!!! At this point, I'm pretty familiar with the basics of saving and investing and well on my path. But I love watching your channel for novel ways to explain the basics to others. I show some of your videos to my wife, and they appeal to her--they open her eyes to these ideas. That's something I haven't been able to do. Thank you.
I don't travel or vacations because I am retired. I eat out once or twice a month to my favorite burger shop that costs me $6.12. I put $2500 into my savings every month. I have a 2015 vehicle I paid cash for and it only has 84k miles on it. It will outlive me since I am almost 75 years old. I have no consumer debt except my mortgage at less than 3%. Some family members think and make snide remarks about it must be nice being rich. I am comfortable because I worked hard all my life and never lived above my means. I don't try to keep up with the Jones because I don't care what they do or have. I sleep well at night not owing.
George, the idea they came up with to have you do these videos was GENUS! You totally have the personality for it. I love your snark and your flair for the dramatic. Also, I find your videos educational and worth the watch.
I really appreciate you churning out these videos so quickly
They are not even hiding the 84 and 96 month terms for car loans anymore. Its on the sign!! Embarrassing.
LOVE THIS! 😍Very concise, relatable, and to the point!
Thank you. Now I see how I'm surrounded by so much B.S. 👀
👍 Thanks George Always intetested in what you have to say Entertaining yet educational Smart man Love your show!
I retired now at 55 Car paid off No kids No debt Live simply lifestyle A budget is a must!
Solid content. Every time.
You may be the king of finding content to tie in. That alone is a full time job.
Fantastic video. True, informative, and funny with no waste. I’d be scared of George doing his own thing if I was Ramsey.
Love your show! ❤
Everything he says is true great video keep them coming and keep me motivated 👏🏾👍🏾👊🏽
Great tips. Keep in mind all cars are money pits. Spend with purpose. The advice i heard once was in you cannot buy that thing you want three times over, you don’t need it.
Be about it! I love it! 🙌
Excellent video thanks!
Thank you George! You are my new favorite financial advisor on CZcams :)
Hey George!
Hope you're doing well!🎉
Great tips and very true!🎉
Have a fabulous day. N week!🎉❤
My biggest financial problem is income. I’ve applied to 100 jobs over the last year with very few call backs. Interviews go well but you never hear back. Jobs that I think I’m over qualified for are rejecting my application. Even Walmart.
Just wanted to provide some encouragement. If you really want a job, you need to be applying to 50 jobs per day. Check out the book What Color is Your Parachute by Richard Bolles. You only have a 4-6% chance of receiving a call back for online applications. This means for every 100 jobs you apply to, you'll receive a call back around 4 to 6 times. It's a numbers game. It's time to increase your odds.
Maybe your interviews aren't going as well and you're nervous without knowing. Can you practice with a friend? Best wishes! Hope you find a Great job soon
Southwest Airlines is hiring ramp agents in Denver. Starting salary is $23.50
Apply. It’s a great company. Good luck
What about DoorDash and stuff like that until you can find a job? Also what about cna or med tech? Cnas can always find jobs and the classes aren’t long or hard. What you pay for the class you can make back in no time. The most I made as a cna was 30 an hour and some have made more by traveling
It took me around 9 months to get my current engineering job, probably did in person interviews at 15 companies and got led on by 2 companies for several on site interviews who never had an intention of hiring me. It sucked but I found a great job with a great salary. The job search feels hopeless until it doesn’t, just keep trying.
You're the man George!
I bought a Mitsubishi Lancer (with cash) in 2017 with ~40k miles. It now has 135k and has had no real problems. I see people online getting 300k+ out of these cars and I'm hoping to do the same.
I have a debt free 2007 Toyota Matrix with 260,000 miles on it. I'm hoping to get +500,000 miles from it. Only problem is they salt the roads here in the winter.
2011 Honda CR-V 291k miles - she's a runner! 🚘🚗🚘🚗🚘
Got the same model in black with the fiance. The dealers at Mitsubishi keep wanting us to trade it since it's no longer made and demand is high for it. We don't plan to trade it, we got no kids and the interior stills looks new. He drives the car, I'ma the designated passenger since I get anxious on the rode but I plan to learn eventually. That same year in 2017 we got our dream home as a Xmas gift. Fast fwd in 2023 my peers and friends still have no house or anything to show for cuz all they do is go on vacation as and tryna drag us with em but we can't cuz priorities.
@@Kuromi10xsurprise you so this because you can't spell out the word because
Great video!! Thanks! I finally started tracking ALL of my spending. I wasn't too surprised by anything except for my food. But, my food spending!!! 😳😳 Oh my!!
Guess it's time to starve.😂
Thank you for this !!!
We are millionaires on paper, with 2 mortgages in CA (also have an emergency fund, investments, etc.).
It’s easier to get rid of mortgage debt when you have no kids. Much easier than if you had two kids and one of them had medical issues and you spent way more than $20K in medical bills before the child even turned two (medical issue that will never go away), so I will take my fake millionaire net worth as is. We do the best that we can.
Loved "buying your personality !!
You need better people around you, I like this quote.
This was a great video
Wish I would have had your mindset 40-50 years ago. I went through money faster than 10 drunken sailors on weekend pass. I did manage to buy and pay off my home, so it could have been much worse. Now I'm in my mid-60s and often think about how foolish I was.
Cool Info
Thank you!!!!❤
I am broke because of crappy car repairs
Travel can get realy expensive really fast and imo is the biggest trap money wise. You have your hotel bookings, activities, restaurants, rentals (cars, equipment etc) , souvenirs etc and it all adds up pretty fast.
Tracking my spending is what I need to work on.
Well said and true.
Legend!
3 year old good quality vehicles (Honda/Volvo/ Toyota) with roughly 36k miles on it when purchased has been a really good strategy for us at 10+ years of ownership/use for each.
But hard to find! I tried!
“Crypto is Mary Kay for young men and NFTs are timeshares for Gen Z” 🤣
You’re gonna be HUGE on CZcams. A big star
Love that there is at least one reference from The Office every episode haha
Totally stealing, "It's not an Ish-Me, it's and Ish-YOU." 😂 Solid video as always!
hahahaha it's the Jocko Photo for me at the end! Great stuff George! 🤣
I agree with all of this. If anything taking personal accountability nowadays is more essential than ever! But I will say most young people are definitely targets for this system’s tricks and tactics and often too naive to see the traps. Social media, music, tv, etc. are all carefully designed to keep you spending money and enslaved. Now more than ever you have to be extremely cautious with your money because the wolves are out for blood! Just look at the housing and car markets these days.
Honestly, the financial advice is really basic. But the constant reminders and encouragement are great to help stay the course.
Thank you 🐪
❤ Micheal Jordan’s “Stop it, get some help” insert! 😂 Please keep adding that clip. Love it!
I was going to Photoshop myself on vacation, but I stopped my Photoshop subscription to save money. 😢
Kidding. Everything said in this video makes total sense! George you rock!
I love the guy putting potatoes into the pot and then fire 😂😂😂. Love ur content. Hello from Athens
One thing is agreed that hobby and personality come at a price
I like to know that I am not average! Thanks George
Designer beige 😂 never thought I would see a Trevor Wallace reference in your videos!
I agree with almost everything. I drive an old used car, dont go out to eat much and dont buy designer clothing. SO i CAN have my hobbies and travel. Those two things have enriched my life so much more. I am happier and HEALTHIER which is the best thing i can do for my family and myself.
Newsflash: a 2023 Bronco has no business calling itself a Bronco
Definitely need a zero based budget that starts with paying yourself (retirement) to desired % 15-25 depending on who you follow first. A zero based budget solves every other problem in the video.
When I was young and watching every penny my treat was to go to the grocery store. I spent so much time comparing prices but it was productive spending because it was for things my family needed. When you are trying to save money, treat yourself to some mini-splurges on things you need i.e. buy that gourmet coffee brand at a great price rather than going to an expensive coffee place. It is a fun challenge.
Mine is meals out: McDonald's app, the best restaurants near me (on occasion), even the dreaded Doordash during a job transition). The worst part?? I love my own scratch cooking!! Thanks for a great video 🔥
I don’t buy designer clothes or shoes I refuse to be a walking billboard
Our bad habit used to be eating out! Since December, we budget, meal plan and only eat out on Saturday. Not only are we saving a ton of money, but we are losing weight! I couldn’t tell you the last time I had a Big Mac! 😂
You missed the #1 money drain, woman. Purchased a new car in 2019, Hyundai Accent for $13,995 out the door with savings. I always purchased new cars and drive them until fall apart. Last car was 18 years and 230,000 miles.
Lol bro the axe video 🤣
I just brought my 2018 car for trade-in couple months ago and got about 90% of its original price 🤷🏻♀️ car was paid off, paid close to 0% interest on it due to buying during some promo. You can’t really plan for it because market may go crazy, but not all cars depreciate too much.
Im broke right now because im in turbo-mode with paying off my car loan.
minimum payment is $300/mo, im going in for $1000
You, sir, are a genius! I love listening to you and look forward to your next show… I just wonder if that daughter of yours has been born yet❤
Thank you! She hath been borned. I’m holding her right now 🥹
Congratulations George ! Love your channel and your sense of humour 😀
@@GeorgeKamelHUGE Congrats man!🎉 I’m in the girl dad club too! Maybe a future video idea would be your approach to college savings!? I need your wisdom on that one!
Hobbies!! I never noticed how much money i threw away on bikes.
I like that you pointed out that hobbies can really hit your wallet pretty hard. I defiantly agree with changing your hobbies up to where it’s cheaper for you to enjoy them. For example, I play basketball several times per week and I hardly costs me anything other than has to get there. I work from home so I don’t consume much gas. Another hobby that’s a money saver is video games. I buy a game one time and I get hours upon hours of enjoyment and I can put it down and come back to it whenever. I am very picky on which game I buy so the amount of games I own is not much or it’s growing because I’ve had them for years.
Bro that Eminem with the “watch your profanity” guy was the best thing I have EVER seen 😂😂😂😂👍🏼👍🏼
You have to have some hobbies. You guys all live boring lives. I have no debt, a good emergency fund, invest regularly, own property, no car payment, and I have multiple hobbies that cost money: baseball, golf, guns, skydiving, surfing, travel, etc. It makes life fun.
Only if you can afford it. Sometimes you can't and many times you can have cheap hobbies.
I know the biggest one for me when I see it in my dollar app is eating out
Eating out is my kryptonite. Even though I’ve tried cooking at home, sometimes the food doesn’t turn out the way I hoped. 😅
Mostly because I can't cook and watching cooking videos makes me depressed because my food wont turn out like that
Just bought a used Truck. Had 1 vehicle for our family for 10 years. Needed the second one now.
The first 2 years before I bought it the truck it deprecated 40% or $750/month. Looks like depreciation flattens out after that quite a bit for this model.
We got a good deal. Flew to pick it up and drive it back for $7k less than our local market.
We took out a loan but are paying 4x our monthly payments. Wipe the loan our in less than a year.
You get a like for the Frodo clip!
Living 400m from railway station and busses, eating out only lunch priced sushi buffet and occasional pizza having writing for a hobby and not caring about brands and luxury items at all really do good for my savings and investing.
Unfortunately first one of those isn't possible in most places in car dependent place like usa.
I’m an outlander fanatic, but I always wait for STARZ to do their promo rate before a new season drop and then once Droughtlander hits, I cancel. Then when they launch the next season or half-season, I rinse and repeat.
You coulda bought a cheaper watch than that Apple Watch and invested the difference in a loaded index fund. Lol
My biggest struggle is using credit cards for groceries and gasoline for vehicle. My income is not enough and I know I need additional income to help my current situation
“Mary Kay for young man” hahaha!
Lol I do none of those things. I am going on a luxury cruise but fully paid for by my bonus. Love to spend guilt free money when it's part of my budget.😊
Trying to fix 1 or 2 broke spender categories at a time! Seems overwhelming to try and cut it all out at once!
Havent even watched the video
..saw the Fast Food icon & l have to point out that at this point in this economy, enough ppl are in argreement that groceries are almost just as high as going thru the drive thru😂😂😂
I spent 14 days in Thailand and even travelled to Malaysia for 2 days all for 1400 usd.
Credit card debt. One credit card went up to 20%. Trying to pay off as fast as I can.
Income to car price ratio for Americans are a dream for so many people. It's really dirt cheap compared to some part of the world. *envy*
I live Vizzini in The Princess Bride-he’s also great on Young Sheldon.
Most people venture into crypto to be a millionaire meanwhile I just want to be debt free
That's very practical and smart goal a wise man once said do everything in your power to get out of debt one of his tips on getting rich
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
@@cassiejacobs4197I'm enjoying working under a platform that brings good returns all in crypto currency with the help of my account manager Mrs Catherine
@@cassiejacobs4197Learn and trade under a guide I do same and I hardly make losses in the market
Starting early is the best way to getting ahead of build wealth, investing remains the priority
That MJ meme never gets old 😂
my only bad habit is eating out too much. trying to get better
If you want to do vacations on the cheap try camping. Yes the first time out will be very expensive as y9u have to bay all of that camping gear but from then on its really cheap.