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- เผยแพร่เมื่อ 27 เม.ย. 2024
- Personal finance: How to save, spend, and think rationally about money | Big Think
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Whether you have a lot of money or a lot of debt, it matters how you handle your personal finances. A crucial step when it comes to saving is to reassess your relationship with money and to learn to adopt a broader, more logical point of view.
In this video, social innovator and activist Vicki Robin, psychologist Daniel Kahneman, Harvard Business School professor Michael Norton, and author Bruce Feiler offer advice on achieving financial independence, learning to control your emotions, spending smarter, and teaching children about money.
It all starts with education and understanding. The more you know about how money works, the better you will be at avoiding mistakes and the easier it will be to take control of your financial circumstances.
Check Vicki Robin's latest book Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence at amzn.to/3iYISI8
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TRANSCRIPT:
VICKI ROBIN: I was leading a session on a relationship with money. I just was curious about where people were with this at this point. This was in 2016. We had 50 people in the room. We circled up and we went around the room, just say something about your relationship with money. And I realized every person in that room was in fear about money. From the 80 year old who I know has millions of dollars to the 20 year old who's like already $20,000 in debt. And it just, honestly it infuriated me like what kind of society requires that everybody participate in something that terrifies them. This feels so amiss to me.
DANIEL KAHNEMAN: People are not fully rational and they make many choices that if they reflected upon them they would do differently. There's no question about that. The major tendency is people tend to frame things very narrowly. They take a narrow view of decision making. They look at the problem at hand and they deal with it as if it were the only problem. Very frequently it's a better idea to look at problems as they will recur throughout your life and then you look at the policy that you're to adopt for a class of problems. Difficult to do would be a better thing. People frame things narrowly in the sense, for example, that they will save and borrow at the same time instead of somehow treating their whole portfolio of assets as one thing. If people were able to take a broader view they would in general make better decisions. So that is certainly one of the weaknesses of human decision making. We call it narrow framing.
Four layers of financial independence
ROBIN: First of all, I'd like to distinguish between independence and freedom. So, financial freedom is like freeing your mind. Financial freedom is understanding that I'm me and there's an economy out there and I have a relationship with it but it doesn't run my life. It's freeing my mind from the messages of the consumer culture, the messages of the economy. The messages that a house is a starter house. No, that's my house. I could die in my house. It's like there's so many presumptions that drive us into waste slavery, debt, and it doesn't matter whether you are at the low end or the high end. If you are engaged in that sort of anxious process of more, more, more, you are not free.
So the first layer of financial independence I talk about is this freedom of the mind. This freeing your mind. Of saying like I am sovereign. The economy is secondary. I will move my sovereign self into the economy for my own purposes rather than I am a schlump, the economy is my mega-boss and I don't know, my boss seems to be as big as the sky and so I will just let my life be run by my boss and the tax system and I'm just going to let myself be run by this thing. No. So you are sovereign beings so that's your first layer of financial independence is your own sovereignty. And then the second layer is to get out of debt. And for some people debt feels endless. And the first step to getting out of debt is stop going into debt. There's many people who have written to us who flatten their debt in a couple of years. Impossible debt. Debt that was going to be endless. They would die with this debt. And once they see what the debt is doing to them in terms of the actual opportunities, the future opportunities of their lives, that's the sort of link that we try to get people to make so that something in the future is more important than the immediate pleasure of buying one more tchotchke that you're never going to use...
Read the full transcript at bigthink.com/videos/personal-...
What was your favorite personal finance tip from the video?
I really liked Bruce's tips on teaching kids to deal with money. I never had an allowance, but he opened my eyes to the advantages of letting children learn by making their own financial mistakes. Surely this sets them up for a healthier relationship with finances than their peers.
Agree with the silliness of the term “starter house.” It sets you up from the start that you need to look for something bigger and better later on when you actually don’t.
Understanding "how much is enough". Forces you to think about what matters most and your "why". Great video!
All words from Daniel Kahneman
Invest in assets that will in turn become another income.
Having money doesn’t necessarily make you happy but not having money will make you miserable
Money can't buy you friends, but it can buy you a better class of enemy.
For most people, who will never see a 6-figure income, financial freedom should be viewed as a level of freedom FROM money
Living financially frugal, by choice is liberating, being forced to be frugal is miserable.
I've been poor since birth, I definitely felt the miserable part.
I worked and changed jobs and now I can comfortably work from home for a corporation.
Definitely not rich but I can afford healthier food, vacations, even a car!
I still have bad habits like trying to get as much cheap stuff instead of looking for quality but I'm working on it.
Money is definitely needed to live but it shouldn't become a purpose.
@@Bismarck666 felt very identified with your comment! Thanks a lot! And keep up the great work!
Fax
As an elder millennial, one of the few advantages is having lived through the Great Recession. My advice. Reduce unnecessary expenses, increase your savings by investing in financial markets and do not sell. One thing I know for sure is that diversifying your income can help insulate you from much of the craziness going on in the world.
True..... I'm thinking of investing in stocks or digital assets to grow my money for the first time, but I lack the in-depth knowledge and mental toughness to deal with these recurring market conditions. please any advice or pointer on how to outperform the market producing good returns
@@leonarodwell You're absolutely right! It just takes a good mindset and nerves of steel. I was deeply invested in 2017/2018 in a well-diversified portfolio of stocks and digital assets that grew 4x with capitalization, venturing is not necessarily just about funds but also to be well informed. It's a long term plan for me so I invest and reinvest
@@micheallancelot Exactly why i enjoy my day to day market decisions being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/ analvsis they have, it's near impossible to not outperform, been using a portfolio-coach for over 2years+ and I've netted over 400k
@@jetkastrokdova You are right! I diversified my $500K portfolio across various market with the guidance of an investment coach, I have been able to generate a little bit above $1m in net profit across high dividend yield stocks, ETF and equity during this red season in the market But the truth is that you cannot do that without a tested trading strategy
@@lindholmlille
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too,
investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Natalie Marie Tuttle is the licensed fiduciary I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
1. Pay yourself first · 2. Save for emergencies · 3. Spend less, save more · 4. Lose a habit, gain some savings
Talking life, Thank you. These rules are the best to know and follow.
I been saving money for. A year now and am about to buy some assets this year
Or just become more valuable
No investment huh? Great advice
oh wow. that's genius advice. I mean, all those people born in poverty, they r just not in the right mindset to save money and make more money. if only they learned this genius, magic formula, they'd be ok in just 4 steps.
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
consider financial planning
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the invt-advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@lawerencemiller9720 mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc.
The advisor that guides me is Natalie Marie Tuttle, most likely the internet is where to find her basic info, just search her name. She's established.
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $650K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimize risks and maximize profits, generating around $3 million in three years with my advisor, Stacey Lee Decker.
I'm intrigued by the idea of investing with an analyst, it seems like a wise choice in today's market. Could you provide me with some guidance on how to get in touch with her?
With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
After reading your insights, I researched her full name and found her online webpage. Thanks for your help.
The stock market is only mirroring the incredible innovations going on right now, such as AI. I have profited more than 120k this year alone using this principle of understanding to select companies.
This is exactly what my financial advisor told me. Sometimes instead of fighting the wave, it's best to flow with it.
The market is not the same as 1929. The pessimism is unnecessary. This is a good to profit from the market, and a lot of people are doing so.
This is great. I've been wanting to get a financial advisor. Could you recommend who you work with?
Sharon Lynne Hart is the licensed fiduciary I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this. I'll look her up, and I hope I'm able to get through to her.
Freeing your mind from consumerism is so important. We're literally trained from young to always want more, to never be satisfied to compare ourselves to our neighbors and what they have. I was always a natural saver, but struggled a bit in not comparing myself to others. It's still something I work on, but over time have gotten better. It definitely helped that I realized the image others put forward, the majority of the time is financed by debt! That's not something I'm interested in at all. I hope more people learn this concept and actively practice it. I'll definitely talk about it on my channel as well.
Wow, story of my life, and it's still haunting me now. I'm really scared and I just hope things get easier soon 😞 🙏🏻
Best advice my mate gave me when I was tempted to buy some thing was to stop and think,do I NEED this or do I WANT it,huge difference,most times I just wanted the item,I had no need for if in my life,helped me save spending on unnessecary items.
Same here, as soon as I settled into myself and realized that ‘you’re already enough as you are.”, my outlook changed drastically. Definitely impacts your money habits as well.
Right! In my experience it takes a LOT longer to live the life you want without using debt because you have to go through the process of unlearning the things we were taught about money and gaining a healthier relationship with it. Otherwise there’s this anxiety and need to keep up with the joneses because underneath it all is the emptiness gained from being taught that we always need more, there’s never enough. Great work Mary!
Debt is a great driver if your lazy
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@theresahv Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
Finding financial advisors like Julie Anne Hoover who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@@theresahv Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
“Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.”
― Will Rogers
For me that quote will forever be associated with Tyler Durden.
@C.S.R. B. tbh, no one really knows where that quote came from. Different versions of it can be traced back all the way to early 20th century. So it doesn't matter. Good quote is a good quote. I just prefer Tyler Durden's version of it.
this pandemic teach me a lesson. yeah your absolutely true.
you mean - Tyler Durden?
I always find your comments in almost all videos I watch . But I'm not complaining
So much knowledge! Absolutely free! I was never taught anything about money, I am praying and working to change that. I am 46 no retirement no savings because I made a lot of mistakes when I started investing, trying to correct that now. Already have a few thousand$ saved up to invest for long term. I would like to know what advice you could give to start my investing journey. Listening to you gives me inspiration and wisdom. Thank you so much!
Just buy low sell high. Stick with a good company by either not selling when it’s going lower and/or buying more at that time. Almost always the good well managed companies will come back strong at some point. The other is to get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Well, I recommend you make a diversification plan because it's been harder to build a good financial portfolio since COVID. My colleague suggested I hire an advisor. I did and I've actually made over $926K with my advisor's help during this market crash. She uses defensive strategies to protect my portfolio and make profits despite the ups and downs.
@@hankmarks69 Really? I’ve actually been looking to switch to an advisor for a while now. Just never made up my mind. Any help pointing me to who your advisor is?
Sure. There are a lot of independent advisors you might look into. But I only work with “Vivian Carol Gioia” and we have been working together for nearly four years. She has since provided entry and exit points on the securities I concentrate on. She's well-grounded and known, shouldn't be a hassle finding her page.
@@hankmarks69 Thanks a lot for sharing man, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
@@user-zw7cd7pe4u This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name MARTHA ALONSO HARA and everything changed. I started enjoying huge returns from my investment.
@@MaryPatricia-wr3wj Oh, that sounds good but how do I reach out to MARTHA ALONSO HARA
@@user-zw7cd7pe4u quickly do a web check where you can connect with her, and do your research with her full name mentioned
@@MaryPatricia-wr3wj Okay, thank you. I just found her website very impressive and dropped a message for her.,. I hope she replies to me
I'd be retiring or working less in 5 years, and I'm curious how others split their pay, how much goes into savings, shopping, or investing; I earn roughly $250K per year but have nothing to show for it.
You can invest some of your earnings in stocks with market-beating returns and shares that at the very least keep up with the market over the long term. I urge that you seek the advice of a broker or financial counselor for a successful long-term investment.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@talented009 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
You can do your research and be on the lookout for one with intelligent strategies who'll help your portfolio maintain an unwavering and a progressive growth. Elise Marie Terry is my FA. She has the Flexibility & Expertise to Meet Your Needs. Verify her yourself
@@talented009 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Now with the recent economy, To get financial FREEDOM you have to be Making Money while you're asleep
Some traders aim to foresee market moves when they enter the market, which is near impossible
Nothing is impossible in the market as it stands now. speaking out of experience, I've known and worked with professionals like CORINNE CECILIA HEANEY whose stock picks and strategies are topnotch, I accumulated a max total of two hundred thousand dollars a month with her strategies and guidance,
@@marianparker7502 That is wonderful. how can one get in touch with this advisor you speak about?
@@PhilipMurray251 Look her up, You will find more details about her on the web.
I'm not even kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.
I cannot focus on the long run when I ought to be retiring in 4years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?
There are a ton of strategies to make tongue wetting profit particularly in a down market, however such advanced trades must be done by proper market experts
I totally concur, I have been consistent with my profit regardless of the market conditions, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a popular forum, long story short, its been years now and I've gained over $850k following guidance from my investment adviser.
I've been down a ton, I just hold so I can recover, I truly need assistance, who is this investment consultant that guides you
If that is the case, it would be an innovative suggestion to look out for Financial Advisors like Olivia Maria Lucas who can help shape up your portfolio.
Trying times are ahead, and good personal financial management will be vital to weather the storm.
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $700K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
I completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
The thing is that I really don't like making such recommendations. But there are many freelance wealth managers you could check out. I have been working with "Helene Claire Johnson " for a long now, and she's made decent returns. If she meets your discretion, then you could go ahead.
I looked up your advisor's full name and she appears to be trustworthy and knowledgeable. She is a fiduciary who acts in any individual's best interests. So I left a message on her website, and I'm hoping she responds soon.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
@@hunter-bourke21 I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
My advisor is "Mary Onita Wier, A renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@hunter-bourke21 Thank you for this tip , I must say, Mary Onita Wier, appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, educational background, and qualifications, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@Shultz4334 Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.
@@colleen.odegaard That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
My advisor is the quite famous *HEATHER ANN CHRISTENSEN* She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.
@@colleen.odegaard Thanks for the info, i found her website and sent a message hopefully she replies soon.
The most important thing is where you live. This is where we have a problem because most places that people have to live are not that nice and so we are constantly fighting to get somewhere better.
Use cash. It activates the pain sensors in your brain. You’re giving a tangible thing away instead of a card
I tend to spend cash faster than my card. Not knowing what is on the other end of the card swipe causes me pain lol
dave ramsey!
Have discipline and use a good cash back credit card.
I’ve always said that it’s nice to hear someone else say it swiping a card is too ez and I’m talking about debit
How is CASH tangible? What backs it? Its Paper, its just as tangible as #'s on a credit card.. The only things tangible are assets
I was near dirt broke 2.5 years ago... but decided to change a few things with how I approach money. Now I have enough saved (invested) to get me through 12-18 months if I had to without changing my lifestyle. It was tough. But the only downside was I took a job that has been really mentally taxing. But man its nice to not have those money worries any more... My best advice is to reduce the monthly fixed costs. ie bills, rent etc... spend as little as possible on BS things like clothes etc, stop eating out - cook 95% of your meals (but still treat yourself sometimes), and track everything on a spreadsheet.
it's amazing how the education system doesn't talk about these topics.
Right? If high schools taught this America would be in a a far better place
It's designed like that. People that spend too much on junk are forced to work more and therefore pay more taxes. Keeps the economy ticking over
It’s intentional. Most people are lazy and don’t seek out their own truths. They rather just accept what authorities say. The more of that then the more power available.
It’s a battle between smart and rich people only. Dumb and poor people are just insignificant pawns in the system.
The system needs the consumerism!
It’s on purpose. You can’t have everyone know these and still expect them to work like a mule 8-5 all their lives. Funny how they taught us to value hardwork, see?
"Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need"
― Tyler Durden
Murica!
Absolutely!
Minus the exploitive I agree because it is true.
To impress people we don’t like
Yep thinking it’s going to make us happier
"Money's greatest intrinsic value - and this can't be overstated - is its ability to give you control over your time."
- Morgan Housel
I recently read the psychology of money. I was surprised how simple ideas there would be powerful insights to change my money mindset. Highly recommended this book.
It's strange how people talk about all the profits, they've been making through trading of bitcoin, while am here making huge loses. Please can Someone put me through on the right path or at least advise me on what strategy to follow.
You don't need to be shocked because I'm also a huge beneficiary of expert Mary Harris trading services . I have earned over $150,000 from her strategy.
Greetings!! from Ontario, Mary Harris is my portfolio manager. She also carries out both orientation and mentorship.
Good to see that her strategy is really helping other traders out.
Keep the good work going Mary Harris🙏
This is impressive.
I haven't watched the video yet, but may I express my appreciation for the thumbnail image - a man's brain falling out as he bends down to pick up money from the ground. Kudos to whoever thought of that!!
So....
..
DEEEEEEEEEEEEEEP
I will always be grateful to my parents for teaching me about money when I was younger. My sister and I used to have a 20$ allowance for the two-weeks long vacations my parents had during summer. With that money we could buy whatever we wanted! But no more, no less than that! On that first year, within one week, my sister and I spent our whole 20$ on candies and cheap toys. But then there was something we REALLY wanted, but didn't have the money for it. We cried to our parents to have it but they just told us that it was part of the deal: 20$ no more, no less, and just too bad if we spent it all. The year after, we got 20$ again to spend however we wanted... During those two weeks, my sister and I spent NOTHING! We suddenly understood that money would be necessary if we wanted to buy things we really needed so we kept it just in case that would happen! Because of this exercice from my parents, we learned the importance of having money for things we wanted, saving money we didn't use and knowing to spend on what was really important to us!
Absolute geniuses
Excellent parenting. My parents’ strategy was to only give money for work and let my grandma give us a dollar/year old every birthday. We grew up moderately poor between 2007 and 2012. The way we stayed afloat was my parents’ hard work and financial skill
@@sethr.c1065 My father told me to invest in gold and platinum. Keep it in a remote safe that only I know where it is and only I know how to open it. I probably have near $4,000,000, in metals. I am not ready to cash any of it in yet.
As a side question: Where do you reside that puts the currency sign after the amount?
@@indridcold8433 In Germany we do it this way, but I obviously don't know where op is from
@@fw--kx6sk In Quebec, it is done that way there also, though not correct. The rest of Canada makes fun of them. I think in the United States of America, the cent symbol is in the back of the amount and the dollar symbol is in the front. In the rest of Canada, we just mainly use the dollar symbol in the front. For cents, we still put the dollar sign in the front but it is starts with a zero, except Quebec.
The hardest thing about money is that...you have to plan majorly for the future... but also enjoy the present...
"The future doesn't matter if you never live in the present"
Things are a bit strange right now. Inflation is making the US dollar weaker for buying things, but it's getting stronger against other stuff. So, stuff like stocks, houses, crypto, and precious metals aren't doing so great because folks are putting their money into dollars for safety. I'm worried about my $320,000 savings losing value fast. Where should I put my money to keep it safe?
I believe having a mentor is crucial. It can be tough to find an experienced mentor, but if you're not familiar with the market, it seems like a smart move.
I agree. Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Stacey Lee Decker, I can say with certainty that their skills are excellent. She helped raise over $480,000 in 18 months from an initially stagnant portfolio of $150,000.
@@MollyLogan- Sure, Fiduciary CFP are outperforming the market and generating good returns, but some charge a lot, as their services are currently in greater demand than ever.
Yes, they can have a positive impact on an individual's portfolio. Stacey’s strategy is transparent allowing full ownership of my tråding account and the fees are very reasonable compared to my return on investment
Out of curiosity, I searched for Stacy using her full name and she seems pretty tight and outstanding. I read her curriculum vitae, her school career. She is a fiduciary who will act in my best interest. So I booked a session with her on her contact webpage and hope she responds soon
If one neighbor buys a BMW and the other buys a Benz, their neighbor will suddenly see all that's wrong with their trusty Honda. The comparison trap is REAL.
This! Comparison is the thief of joy. But it's easier said than done to not unconsciously think about what you're lacking compared to your peers. But that's why it's so important to realize that majority of the time, people are financing their fancy image through debt. Once more people realize that fact, maybe they wouldn't be so envious anymore..
You're absolutely right!!! Though nowadays I think it depends in the neighborhood; maybe of it's a wealthy one but also your mindset. Why should care about what car your neighbor drives; would you rather be debt FREE or drive A fancy car that already depreciates from the moment you drive off the lot!! I think with the FIRE movement becoming popular; folks are waking UP & realizing it ain't worth spending what you ain't got!!! & Having a hefty emergency fund is pretty cool. I think the Pandemic is waking people; you gotta plan for the unexpected emergencies!!! The people thriving in 2020 even with Job loss are those that saved alot of money ahead of time💯💯!!!
The interesting fact is that the Honda is probably more reliable that the expensive BMW!
@@miken4591 Truer words were never spoken. The Honda neighbour should pity the BMW one.
Everyone doesn’t have this issue! Some people don’t care lol
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name Corinne Cecilia Heaney and everything changed. In in the first quarter of this year i made $370k and counting.
@@PhilipMurray251 Impressive, that sounds good but how do I reach out to Corinne ?
@@Patriciacraig599 Use your browser to search for the name to see her website.
@@PhilipMurray251 out of curiosity i looked Corinne up and she seems really proficient. thanks for sharing
Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.
- Proverbs 13:11
Jesus is God
Word!
Unless the person who got the wealth hastily is smart with their money, it will only grow overall.
@@geradosolusyon511 yes, dear.... Risk free investing gives moderate growth.... 5% high risk 🙄 could be masterstroke
What hit me (in November 2020) was the Plaid Shirt Guy talking about how happiness comes mainly from doing things with others, so spending money on shared experiences adds to your happiness more than buying things to enjoy alone. No wonder 2020 has been such a tough year, when the activities he mentions are mostly off the table due to Covid-19! He does also mention that giving to charity or to other people brings happiness too-and there is plenty of scope for that this year.
Bruh. It took you YT video to figure out what many of us have known for hundreds of thousands of years. 😂🤣😂
Admiring that African touch necklace...Ankara deco ..soo lovely on you mom
After I graduated, I realized school taught me nothing about money. Then I found the book ‘the Richest Man in Babylon’ and learned everything about money that I was not taught. Also started watching videos like this. Lots to learn!
We need to be teaching personal finance in schools and the idea that “enough is enough” needs to spread like wildfire.
Better yet, it would be best if it was taught at home by the parents.
@@mrhollister8520 It would be best if every parent was well informed on this topic AND taught their kids... but since #1 is iffy...
but this doesn't complement consumerism does it, governments and businesses want people to "want" things, new phone, new car, new bag. When people stop spending the economy collapses and its suddenly everyone's problem... we have to get rid of this system first...
It's good in theory. But teaching and engraining fiscal responsibility in school, while most facets of social media flaunt wealth/materialistic items, creates a tough challenge. But still, teaching it is much better than not teaching it.
Kaniaaseelan Siva Seelan abolish consumerism 👍
If you're starting out on a personal finance journey, I'd definitely recommend reading two books:
1. The Richest Man in Babylon - teaches you very simple concepts that you can apply.
2. Your Money Or Your Life (written by Vicki Robin (the lady in the video)) - Gives you a different perspective of what the "cost" of work and the things you buy amount to. A bit technical, but eye-opening.
Thank you 😊
Thanks
How about Rich Dad - Poor Dad?
@@DanRayBeats I honestly haven't read it yet. But most of the creators on YT that talk about PF generally give it good reviews.
@@adhynugroho9424 I just finished reading it recently. While it does have some nice takeaways (that can mostly be found in other books) it seems to be really heavy handed in blaming poor people for being poor, and corporations that take advantage of poor people aren't really taking advantage of them; they are just teaching them a life lesson. If you are poor and are mistreated at work it's your fault for not getting out, when getting out sometimes isn't an option. I agree with some of it, but some people have very little room for applying it.
I liked the Emergency Fund tip. Something we often overlook, but the need for it becomes much more obvious once you have a family
Debt is becoming easier and easier to get into.. Consumerism and getting into debt simply are the easy option for the "I want it now" generation.. great video, thanks for sharing.
I think what brings more happiness is to work for a purpose that makes us feel bigger than our need for survival. A sense of belonging to something greater than ourselves instead of working for money.
This.
This
People have been programmed in such a way that their happiness is connected to spending. Through Advertising when they show you pictures of 'happy people' eating junk food, using iphones, headphones, wireless earphones, drinking sodas, wearing newshoes (Nikes, adidas and the pumas). You have to unplug
Agreed. I am actually considering living in a monastery without internet for a year to learn how to be happy without the “excitement happiness”
I love the concept of thinking of yourself as sovereign.
That was the original american dream actually
Life is weird, beautiful experience when you step back and look at it. Grateful to be here with you all, working with a financial advisor could truly set you up in life. I’m delighted to contact a financial advisor earlier this year because while others were busy whining about the downturn I was busy cashing out from my investment, finally making over $370k for the first quarter of the year.
That's great, this is one of the best advice ever, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financially stable. Please who is your financial advisor you invest with ?
COURTNEY HEATH WILLIAMS! That’s my licensed Financial advisor. he's well accredited, efficient and proficient to help you through managing and guiding you in building a good investment portfolio.
@@williamsdavis. good one, could you please share the contact information of your financial advisor, because I’m seeking for a more effective investment approach on my saving.
His available on telegam using the user name information below..
@@Barbara0015WHCOURTNEY.
All this sounds good, but the number one thing is how to EARN money. In the US we need money to pay for basic things like health care and housing and I think more people struggle with that than struggle with being "unhappy" or whatever while having too much money. Saving is good, but it doesn't matter if you're not making enough to cover basic needs in the first place. A big medical emergency can wipe out savings instantly, sometimes even if you have insurance.
Exactly
Right on the money! Spot on!
This was a good video. And I have been reading most of the interesting comments. But your comment here totally mirrors my own sentiments about personal finances, saving, spending, earning etc.. And what you said about medical emergencies wiping out your savings overnight is absolutely true. The very thought haunts me sometimes. The crucial challenge is still about how to earn money, and earn enough to live and feel secure and happy.
Thanks. The lack of personal finance knowledge is very very risky for our happiness.
Funny thing is, my phone must have been listening in on all of my conversations because I just came across this video during the same time I met Jessica Marie Gibbs.
Wow, I'm surprised that you brought up Jessica Marie Gibbs Financials, as she is also my current broker.
You don't have to be
shocked, Jessica Marie Gibbs as helped so many newbies become millionaires through çrýptö trãđinğ
@Jordi William I would recommend you get started with a professional that will help you while you get the returns
@Jordi William I would recommend my current broker Jessica Marie Gibbs financials. She is currently earning a lot of profit for me and het services are top notch
*Jessica* has changed my financial status for the best. All thanks to my sister who introduced her to me.
A 17 minute video clarified how I should act with money better than any high school class I’ve taken
One thing that's helped me control my spending is, before I buy something I think "do I need this, or do I just want this?" Spending a few moments thinking that through and you realize you don't need most things that you think you do. You can get by without them.
Yup, bc buying is so easy but committing to actually using the things let alone continuously is the hard part huh
"I am sovereign, the economy is secondary... I will move myself into the economy for my own purposes" 🤯🤯
I was 10 and this was the late 90s, so GIJoe action figures were still a thing in India. I asked my father to purchase me one if I was able to score high grades in my exams.
He told me that he will buy me one after the fact anyway but I should always remember to do something because I want to do it, not because there is an incentive at the end of it. When that incentive is removed you will not do things because nothing else is there that motivates you. Never thought that lesson would be so helpful in the longer run.
FYI: I never got paid an allowance for household chores.
You cannot have happiness without safety. At the most fundamental level, financial security helps with happiness.
“Every time you borrow money, you're robbing your future self.”
--Nathan W. Morris
Never heard that one. Nice!
My future self is a corpse, so imma borrow all the money. HAHAHAHA!
@@ChaosmanOne Fair point. Michael Jackson was between $400 million and $500 million in debt when he died.
depends what you do with that debt
Same goes with time.....(viz. Procrastination)
I always say about stuff that it’s not just about the money I’m spending but also the visual clutter and space they take up. Because of this, before I buy something I ask myself “should I invite this thing into my house?” It stops a lot of unnecessary purchases in their tracks.
Retiring early is possible but tough, it definitely requires discipline and big sacrifices. It’s not only about saving, the huge step is boosting earning capacity. The stock market and real estate are by far the most profitable my portfolio has experienced.
I firmly believe everyone striving for financial independence should own both stocks and real estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide.
@@seanroger6954 I’m retired with a 7 figure portfolio and receiving about $400k annual earnings from my investment coach Frost Hilda, and this earnings are profits from consistent trading in stocks. I have been in the stock market about 4 years. Am I worried? Absolutely not. I bought my first house with those profits. I am going to sit back because my investment and consistent profits actually calms me down. Eye on the prize, stay the course!
@@joerobert1801 this is pure genius, It hasn't been easy being a growth investor over this past few months.
@@joerobert1801 I’m aware of Frost Hilda, I’ve been playing defense in this current market, how has he enhanced your earnings?
@@rahultoggi4672 Expertise does play a major role in my investment journey and I was able to achieve this with the guidance of my investment coach Frost Hilda. Frost's expertise helped build a portfolio that helped clear all my debt and created a sustainable flow of income that’s fully funding my retirement all in 4 years.
1:35👌👌👌
2:15 Financial Freedom
3:30 Debt
4:55 Savings
6:00 Compound
8:50 Spending
10:00 Experiences vs Stuff
11:45
12:35 🔥🔥🔥
13:00 Stuff
13:15 New Road Map
Thanks,
I am adding few things to your work hope you won't mind.
1. Free your mind
2. Get out of debt as soon as possible
3. 6 month of emergency money
4. Super savings habit and put that into investment.
Excellent points - especially that of financial education of children !
i love thesseeeeee
Interesting how we get educated on numbers, but not on finances. Some really good takes here!
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
It's a delicate season now, so you can do little or nothing on your own. Hence I will suggest you get yourself a professional that can provide you with entry and exit points on the securities you focus on.
Very true, Shortly after my port-folio took a big hit in April, I was forced to employ the services of an Investment-analyst that has not only accrued a profit of $180k for me since then but has also taught me how.
@@cyrilbalistreri4348
Please can you leave the info of your investment advisor here? I’m in dire need for one.
The investment-advisor guiding me is Diana Luise Hines, she is popular and has quite a following, so it shouldn't be a hassle to find her, just search her
@@cyrilbalistreri4348 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
This is arguably one of the BEST pieces of content on TH-cam.
I’ve taught personal finance for my church. The key, in my mind, is being honest with yourself. People are afraid to face the truth and money/stuff offers them an illusion of happiness. It can be scary to let go of that illusion and face the truth.
No credit cards, no loans. That's been my rule ever since I cleared off my debt. I've never been happier.
I have an economist as a close friend who would always say for every purchase you make, you can't buy something else and that making money is action, keeping money is behavior, and growing money is knowledge. He showed and taught me how to use Aixprobot an Auto-trader, which I used to make over $150k from trading alone just this year with no Federal taxes paid. He is a smart dude, and I like him. using this medium to appreciate him. Grateful!
Had this Aixprobot recommended to me by my Fin.Advisor sometime after the 2009 market crash even created an account on the software but was skeptical about Autotraders
@@aguilarkristine7022 Same here was skeptical about automated traders too. But in all honesty, Aixprobot is very good. It is what most of these experts even some TH-cam experts use to make enormous profits from the seemingly unknown market. Only the truthful few will let you know this.
@@hunantrain Thanks
As a beginner, I did prefer auto traders to direct investing because you mustn't be an expert to earn,,, used this aixprobot the software version. Learnt they have upgraded.
It works. I've done it and went from debt to where I am today. Start with savings, paying off debt, then work for happiness. it works.
I read 'Your Money Or Your Life' and it completely blew my mind, changed the way I think about money forever. I went from scraping by as a salaried worker with no savings or concept of passive income, to seeing the things I could create as capital that can make life better instead of trading time for money. Essential read.
Will check it out. Thanks for the recommendation
One thing I do to save money is using my credit card dividing what I buy in 12 parcels. Save for food and other basics, I can only use my credit card, nothing else, and if I want to buy something new, I have to wait for months until I pay enough parcels to free space to make more debt. What often happens is that after months waiting, I realize I don't want to buy that thing anymore, or that I found a much cheaper version, or used one that cost much less. This forces me to search for cheaper prices, so I can fit it in my budget sooner. I force myself into a scarcity mentality even when I have money in my account. But it's not good to save too much money, inflation will eat it away, so I have no quarrels in doing some spending from time to time.
Nice video as always. However, simply telling people to ‘have savings’ doesn’t help when you work paycheque to paycheque. And no, depriving yourself of a can of beer after a 12-hour shift isn’t going to cut it.
Brew your own beer.
@@mitesh8utube Walt, is that you?
ask yourself why you are "living paycheck to paycheck". There is always a reason for that. Then ask yourself can I change something about that? Then if you can change something, use the tips you got from that video.
Furthermore, they were also saying that one's relationship to money depends on how we value our own live. Here we could ask oneself if we let the rules of the market rule our lives or if we learn to live with the rules of the market and become our own sovereign.
If 1 cheap beer is going to affect your retirement plans....you need a job that pays more than minimum wage..
That's for 14 year old clowns that are simply working to get fired
If this is your career...wow
@@gordonsands No need to be condescending and judgmental. Everyone has a different path through life and as such peoples' lives will look different.
Once you have a comfortable level of money saved, invested, etc., remember - in order for that money to have meaning you have to turn it into something. A object you would get pleasure from, an experience you would enjoy and learn from, or a gift to someone or charity donation. Otherwise money is just numbers on a quarterly statement. (And you will NOT be the first person to take it with you.)
So you're saying i should spend all my savings on dildos?
🤷♂️
Ok, but surely after about 38 it gets a bit redundant to buy any additional ones? What is dildo #112 going to bring to the table, really?
4 layers of financial independence
Layer 1: Free your mind Sovereign Being
Layer 2: Debt Free
Layer 3: 6 months emergency fund
Layer 4: Invest your surplus savings
Layer 5: Understanding expenses
Love this. I'm 23 and save 65% of my income without any debt. Excited to be financially independent soon!
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It's not happiness that money buys, but rather it affords you more and better choices.
10:19 Baffles me. Playing a game is an experience. It can be a social one. It can be satisfying. It isn't an especially extroverted experience, but that's part of the charm.
Vicki Robbins is a genius. I read her book, your money or your life, when I was young and it shaped my entire view of money for the better and has allowed me to live a life very different from a lot of people and with a lot more freedom.
That point about mistakes is so great and just applies to so much more of life than even just finances. Also I was very happy to learn about financial freedom as a sort of reaction against a consumerist society - I feel Marie Kondo’s book about Tidying Up, which I read recently, aligns with this very well. Great content overall!
This is by far one of the best videos that do actually educate about money ! Sharing wildly
LEVELS OF Financial Independence
1. Free mind- own sovereignity
2. Debt free
3. 6 months savings in liquid
4. Monitor your DEBIT, never credit, spending habits
6. Pay attention on purchases that make you happy
7. Experiences rather than stuff makes people happier
8. Limit the influence of money in your family. Chores @home are not to be paid. Its a team responsability.
New Road Map: True hapiness and purpose of life is a sweet spot where enough is enough for you.
This financial wisdom is what most people need.
Avoid debt as much as you can… if you do need loans, _use_ them wisely (as leverage not just for things) & then pay it back asap!
That’s my own top tip for any level of income.
The comment about people saving whilst being in debt at the same time is always something that’s been odd to me.
Your messages are not just uplifting; they're life-changing. Thank you for making a positive impact! 🌈
We need to be talking more about money in a productive, informative solution based way. Empowerment is essential!
Four layer of financial freedom:
1 free your mind
2 get out of debit
3 six months of emergency fund saving in liquid assets
4 invest your surplus savings
Finance and emotions:
1 Your need to be good at numbers; you need to understand about compound interest.
2 You have to frame things broadly, not in a narrow way;
3 money can buy happiness if you spans it right.
We just have a third of our life to do whatever we want. The other 2 thirds are sleeping etc.
This is excellent advice and the biggest take away for me was to figure out who you want to be. That's the most important step in all of this in my opinion. The rest of the advice revolves around who you want to be.
13:11 Wow that is mind blowing! I never thought about it that way thank you
7:45 - 8:32 . That hit different ❤
6:19 is life-changing and really puts it all in perspective. Life is a series of wins and losses.
I will say I’ve been an adult for about 20 years of my life. You find out life is expensive and it really takes about 20 years to acquire just about everything you need. I try to hit the sweet spot. Have struggled with debt a couple times . There’s just so much that happens that you have to pay for. I don’t like wasteful spenders but I don’t like the cheap skates either that would rather borrow stuff from you than buy their own stuff. You figure out what you need and you can become pretty content but you will have to spend more than you’re going to want to in the first part of your life. Also living in a city in an apartment is a whole different ball game than living in your own house in the suburbs with kids and multiple vehicles. Houses and vehicles WILL keep you poor for a long time.
Vicky Robin's book "Your Money or Your Life" changed my perspective about money.
Nowadays I am afraid for my earned money because of what I cant remember.There was a memorywar over my money. But the bottom line is I need and want my earned money.
This isn’t just a video about personal finance. It’s a lot more than that. Thanks!
Very happy to see someone produce a real logical financial video. Well done!
money wasn't really a talk for me growing up. my parents passively taught me it. about 6 i was helping rip the insulation out of the walls. i can't remember exactly what my role was. it wasn't much though. at the end me and my siblings got a handful of change each for doing a good job. we were sent to the corner store to pick out something for ourselves. i didn't know much about numbers and stuff then. with help i found out the change i had was enough to buy so many candies or a soda. that was my first lesson in managing spending
it went that way my entire childhood. my mom would give me money on a irregular basis. to spend on whatever i wanted. i would look over stuff and decide whether to spend it now or save it to put with more. most interesting find was arcades. that i could spend $5 in a matter of minutes on a single game, or reset instead of continue and spend a massive amount of time playing the same game
Limiting the influence of money blew my mind. Thank you.
This video is a great reminder that small changes can add up to big savings over time. It's inspiring to see how easy it can be to start building wealth with just a few adjustments to our habits.
I watch a lot of TH-cam. This is the best video I've watched in 2021 so far.
Much appreciation for this informative video on how to save, spend, and think rationally about money . I had a very distorted model around money. Thankfully it’s become relaxed and easier now
This was a wonderful and very much needed piece! Young people must understand that saving is not enough. It's a good start, but given the way the economy is going, you have to do better. Investing that saved money is a must and diversifying your investments so you have multiple streams is key. Of course, well informed on the right ones or better still, get a pro to handle it for you (that way, you save time and minimise risks). Made my first million this way earlier this year through something as casual as forex. Good luck!
Amazing approach though its quite as easy... You mentioned something about using a pro., if it's not a bother, do you mind telling who or recommending any good one? I could definitely use help right now as my finances are currently in a terrible state... I look forward to your reply...
real solid talk right there
@@manofsteel7635 Funny enough, I can honestly relate. Nobody said it was easy as it takes some level of decisiveness and discipline. I don't know if I am permitted to drop it here, but her name is "Leah Marie Sandock". Was in the news a lot in 2018. You may look her up for more.
@@yvonne5449 wow I know this little lady. Once attended a fundraiser she was also in attendance in Vancouver,, Great speaker with a funny accent,, She's American though, I doubt she works with foreigners,,,
@@yvonne5449 Thank you...
This video is amazing, I think I finally found what exactly is happening with my bad decisions on money I include too much emotions when spending and I think that is really bad but this video is great so that I can teach my kid how to control his money!
Something else to big think: is it more efficient to have every citizen in a society need to do these mental gymnastics, or to redesign the system to where it's purpose is a freed mind & rationality?
This is such valuable and wise advice and is exactly how I have been thinking as I reflected on my life, at 67 years of age, if only 40 years ago I had put these principles into practice, but other things mattered more then, maddening now to reflect what life could have been like.
U turn is better then none. Peace and health.
I am marveled by the more on enough...wau...
Thank you Big Think!