@@jeremykeller211 Not futile or silly, but an effective motivator, and entirely realistic. While reaching for wealth, the byproduct we got was becoming more accomplished!
@@dstevens518exactly. Better to be wealthy verses look wealthy. There are many out here masquerading as wealthy but secretly living paycheck to paycheck with cc maxed out.
In 2003 we were approved for $400k the relator started talking about $400k listings. We told her our Budget is $150k and that is what we bought. 2022 that house is already paid off. We have been with $0 debt (other then the mortgage) for decades. Live for you not for strangers.
I find as I grow older and continue to build wealth by living beneath my means, the things I used to covet and not be able to afford, now become the things I can afford but no longer covet. Funny, eh?
Life has a funny way of doing that. You’ll want what you can’t have. When you can have whatever you want, you don’t really want it. Applies to so many things: relationships, jobs, etc
For sure - I remember when I was a late teen early twenties I wanted a big income so I could buy all these nice things. Now in my mid thirties - I just want to chill on the porch with my husband and my dog and to go to bed early 😂
I grew up in Southern California during the early 2000s. I saw many families that "had it all": luxury cars, huge homes, amazing vacations... until the market dropped and they "moved". It was all an illusion. My wife and I live below our means and sometimes it is hard when I see others with things I would like to buy, but have decided to pass on. It makes it a lot easier when I remember my teen years and the lesson of that time. I have no idea how they are really doing, but I know how I am doing and continue to focus on that.
Almost every person I speak to have dumb finances. Buying a new car to save money. Putting 100,000 in a 2% savings account because they lost money in the stock market and don't trust it anymore. Buying solar panels to save on energy. Trying to shop for energy prices. Buying a house and car you can easily afford and putting all your other money to work in the stock market is just too hard for most people. And then complain why they have to work until their 70s...
Yes - my sister-in-law and her family is a classic example of that! Ridiculous cars, obscene McMansion, annual trips to Europe and Hawaii. And then one little hiccup in the economy and the McMansion had to go on the market and they were sucking air for awhile. Now it’s back to their spending ways - I can’t imagine they have more than a few nickels put away for retirement, which is sneaking up on her fast…….🙄
Living below your means is very hard in todays world. The problem in this country is that Finances are not taught in school. I really think it should be a required class in grade school all thru College. People get into bad Financial Debt early in life & it can act as a Financial prison. From credit card spending to Buying that car you want.
@@ag4allgood living below your means: save money each month, only spend money you have left. Stop pretending borrowing money for clothes and a car is normal. It isnt. When you learn how to add and substract you know enough about finance not to go into debt.
@@Ferdinand208 Don't forget to add doing a BUDGET to see exactly where the money goes & how to reduce your expenses. When you have the House & Car paid off with no credit card debt is really when you see the improvement to your Finances. Inflation will still be felt but its not going to ruin your Financial life ! Emergency fund of 6 months saved / fully funded Roth & 401K are also goals to hit before the house & car are paid off.
"nothing to prove to anyone" has to be one of the best financial advice lines I've heard on youtube. The whole point of building wealth is to provide financial security for you and your family - or if you are more philanthropically inclined, causes that you cherish. Financial security provides you with freedom from the anxiety and stress of want and that is essentially "having it all" - at least in a financial sense.
Vacations are the biggest line item in my retirement budget. I love vacations and I am hoping to achieve a level a wealth that allows me to take a 15-20k vacation each year
Looking wealthy is actually a negative. I can’t afford to look wealthy now, but even if I could, I wouldn’t want to, because then you’re more of a target for scammers and criminals. Why would I want to paint a giant target on my back?
I live in a city where rich parents send their kids to university, and those kids often drive outrageously expensive exotic cars painted in look at me custom paint jobs, like a chrome like silver or screaming loud pink. All I ever think when I see them is "Why do you insist on marking your kids to be kidnapped?" It HAS happened before, and I'm sure it will happen again.
I don't think there's anything wrong with other people seeing you as being rich just because you are going about your normal day enjoying the things you value. I'm certainly not going to drive a hateful little pile just to keep people off the mark, thinking I'm broke. I like nice cars. I'm going to keep driving nice cars, that fit in my budget, regardless of how others might perceive me in them.
I'm your typical millionaire. I'm a t shirt and blue jeans guy. I shop at Walmart or Michaels for my t shirts. I still drive my 20 yr old Honda. House paid off. I fully retired at 55. No show, all dough. I love it. Nobody looks at me or ask me for money. Under the radar is what I like.Good video.
Yep - I have a net worth well north of $1-million and my daily driver is a ‘97 Chevy Cavalier! My wife hates it, but I love it since it flies completely in the face of what today’s vacuous “social media society” would tell you to do with your money……..😂
Ditto. I've lived frugally but not cheaply (there's a big difference). I'm a few years older than 55 and still working but I could retire any time I wanted. But I enjoy what I do, these days there's a lot of mentoring and I like that. So as long as that continues, and the company doesn't annoy me, I'll hang around for a bit yet. But I've got to say, any sacrifices I made by not buying this or that have been well worth it. I can't even remember most of the things that at one time or another I would have loved to have, they meant that little to me in the end. Why go into debt for that?
I was a Flight Engineer and I saw this first hand. I met many Captains that were broke despite making 30% more than me. They were so broke that they would take the catering off the airplane because they couldn't afford to eat even though we were paid Per Deim for food. I on the other hand saved 25 to 40% of my pay and invested wisely at times. Now I am wealthy beyond my greatest dreams. I lost my job because the airline that I worked for sold the airplanes that had Flight Engineers and I wasn't a pilot. By then I was ready to retire anyway. The company was up front with us and told us they were getting rid of the airplanes that had Flight Engineers. I used this time to buy a new car for cash and a new home for cash. So I have been retired for 11 years and have no problem meeting my needs and wants. Since I traveled the world for 34 years and have been to over 50 countries I don't take vacations now. I do like nice cars but I pay cash for them. Ir's my only vice. I Don't buy new cars to impress anyone I just like new cars. When you have no bills you need a lot less money to live. More money to invest.
This is what I think is a great retirement. Did it right while you worked, weren't phased in the slightest when they pulled the plug on your job, have money to indulge in things you like, not for the purpose of showing off, but cause you actually like them (I love cars too). Thanks for showing us an example of how to get control of your money and make it work for you, and not the other way around...
This reminds me of when my husband was still heavily and surely gambling our funds away and we were virtually poor (other than our 401K that, thank goodness, we never touched). He would walk about to his aircraft at the airport while wearing his airline pilot uniform and the women would continuously flirt with him while they boosted his ego. If only they knew we couldn't even pay for our utilities! Well, we are past that stage fr a long time ago and have recovered fr the loss bc we became smarter w our finances after his rehab. But my point is, you will never know fr one's facade what is really going on in one's life.
Living a Stealth Wealth with teenagers is really hard. At that age they admire social media, their friends have much nicer cars...even nicer phones.....and it's hard that we as humble parents are hiding our net worth to them. We COULD have nicer things, but choose to spend most of our money in investments such as 401k, Roth IRA, 529, that create value...
@@lijohnyoutube101 If they knew our net worth....they would expect more than a $5,000 beater Toyota at age 16.....yes, they are not entitled, they need to earn things on their own but it just avoids the back and forth bickering and debates.
Is there a possibility you are depriving your children of a much more important thing than stuff? A chance to understand why there are things they can’t have and the long term goals it supports? It might be worthwhile to have open conversations about those things so they can at least be exposed to a different way than the world shows them.
@@michaelswami We teach them to work, save, invest.....we also raise them poor purposely. The reality is most 16 year old they just see an iPhone 14 and a Tesla as a sign of wealth and status...not an investment portfolio....we tell them do well in school but especially work hard in life and anything is possible. Most of their friends don't work ....but drive nicer cars than even myself to school....told them to pick poorer friends than....hahahaa
My 15 year old daughter attends a private school, so some of her classmates definitely come from affluent families. We tell her all the time that you can't judge a book by its cover and that many of these folks are not as wealthy as they try to appear. We drive decent, but very ordinary cars - that we paid cash for. We worked hard to pay off our house early. We contribute fairly aggressively to to our retirement accounts and we live well below our means. If we knew the truth about these "rich" people, it's doubtful that there are many of these people that I would be willing swap finances with. I imagine that our financial situation is far better than most of the people who are trying so hard to appear wealthy.
Great information Erin. The car payments over 48 Months are nuts. I always saved 50% down and always had it paid off in 24 months or less. This gave me time to save for at least 8 years to build up for the next 50% or more down. This is so important to teach kids. All three of my kids now use this formula.
Learn how to take care of a car and buy (cash) a “good” used car that you can repair yourself. That’s my “formula”. Been using this way of buying and maintaining my transportation ever since high school and haven’t made a payment yet. Don’t put yourself into financial bondage on a depreciating asset. One of my neighbors chooses to lease a fancy car, another one buys a new car every few years, both enjoy their cars but have to borrow money to pay for college. I on the other hand, was able to pay cash for my kids 12 years of university.
If you have to finance a car for more than 4 years in order to "afford" it, then you really can't afford it. Once a car is paid for, keep driving it and save for the next one. It's a great feeling to get to the point that you don't have to finance at all. Driving off the lot in a car that you paid cash for is an awesome feeling.
Paying cash for a car is so much better than financing one. The only time I ever finance a car is when they’re knocking serious money off of the price. Then I pay the car off within a month of the purchase.
Great info. For cars we never have more than one car payment. Finance it over 72 months but make double or triple payments to pay it off in 2-4 years. We trade them in paid off in full plus a check (never roll negative equity). Don't buy more house than you need. You are stuck with larger repairs, larger tax bill, and larger utility bills as long as you own that house. Never ever go into debt for a vacation. Save up before you go. I travel for work so I rack up all the points and credit card rewards so we travel for almost free when we do travel. Always avoid monthly payments on anything. It is crazy how fast $200 here, $400 there. $500 there etc eats up a paycheck. Just remember there are a lot of people faking it until they make it (unfortunately most don't) out there. The Jones are broke don't keep up with the Jones. Keep the videos coming. Always interesting to watch.
I love that you brought up the misconceptions people have regarding wealth and profession. I am a lawyer married to a teacher and people often assume I am the wealthier one, but they are completely wrong lol. A lot of teachers beat the lawyers and doctors I know as far as wealth accumulation.
It is a challenge to wisely transition into spending on certain things while being a saver at heart. Some things I've learned can be worth spending "more" on: education to improve yourself, experiences with family that create memories, things that improve your health, and things that save you time. I've still done even those things in as frugal a fashion as reasonably possible but I've been more willing to spend when I realize the value.
My wife drives a 2020 Chevy Equinox. She was rear ended one day, backed into two days later and backed into again two weeks later. So, tell me again WHY do I want an expensive car???
I was just invited to my neighbor's birthday party and everyone they knew was invited and the house was packed full of people that didn't know each other. It was obvious my neighbors were not only showing off how many people they are connected with but how well they can throw a $$$ party.
What did they have at the party that made it expensive? We throw parties, we usually just buy some soft drinks and let others bring food pot luck style.
@@toddspangler6669 This was a party for their 1-year-old daughter. They had: - a clown - a live band - lots of decorations - 6 cakes - fridge packed full of food and drinks (Bar-B-Que) - I don't know how many presents were from guests but there was a lot. I guess they are very proud of their little girl. Wow!
Well I do love a nice get-together - but we just throw food on the grill, call it a potluck and play games. Great way to spend a Saturday, great memories, and it doesn't have to be expensive!
House should be no more than 2.5 times household income... You broke my heart there... I have a house that's around 5 times household income and I consider myself lucky since we are able to earn more than average .. the average in my city is more than 10 times the average household income it's crazy here.
I read 'the millionaire next door' about every three years to keep grounded. It keeps my net worth from backfiring on me and doing harm. It can be found at used book stores, or the public library for free. I highly recommend it.
We just bought our first home and decided to buy it outright since it was a modest home in Ohio for 160k. It’s going to be great not having a payment on it. I’ll need the funds to pay for my classic truck restoration.
@@ErinTalksMoney Thanks Erin! I’m having it done at a shop. I don’t have the time, patience, or knowledge to tackle a project like that. I enjoy your content a lot. If I’m not mistaken I believe you’re a Michigan native, like myself?
I bought 3 t-shirts back around 2001 and used them daily for office work, then for play/camping, then later for hard outside labor. Still have one of them left. They would have easily been worth $250 each from the value I got out of them in 2 decades of use, but I didn't pay anywhere near that. I just wish I could buy that same exact quality shirt now.
I hear you. Found some heavy flannel shirts on sale, 80% off. I liked them, and the lovely thought they looked nice, so I purchased five of them; she rolled her eyes at me. Used them as light jackets. Wore one completely out (still hanging at the back door for dirty work), gave one to a friend who needed a light jacket, routinely wear the third and just looked under the stairs to find four and five, still with price tags. Retail price was $27.75; purchase price was $5. Year? 2005. Not here to impress anyone (except the lovely), so what do I care if they are way, way out of fashion.
Ha ha I still wear heavy duty t shirts from 1995 or so, still wear them once or twice a week running my painting business, literally 25+ years of use of made thousands wearing them
@@ErinTalksMoney Definitely takes both to work in unison to be successful in marriage, family, health, finances, etc. Going strong after 35-years! Great channel and best to you and your hubby Erin!
I drive Honda CRV fairly new, Live in a huge home in Texas in upscale area, take tons of vacations to Mexico and Philippines, don't care about brands just want quality products tools or clothes, and I am business owner. I am comfortable in life
@@ErinTalksMoney Yes, But I am almost 60, that is the down side but I am trying to make the most of each day by traveling until my health says no more.
You are hitting the mark of truth and wisdom more and more Erin. Logical and wise well beyond your age. My neighborhood is filled with people who post where they are at or what they are doing every week. My guess is most live paycheck to paycheck. You should have a million subscribers. Younger people need to be listening to your great advice.
We write a check for cars and keep them 15+ years. If you cannot do that, you should not buy it ! That means you have to save a couple years to get that 10K car, then that is what you do. Bought just the right amount of home. Now that our daughter is out of the house, we have spare room and it is perfect for us to age in. We take great trips multiple times a year. Our spend is about 20K per year for travel. Although we have good income now, it has been decades getting here and our wealth was built on the 50 and 100 bucks a month we put away 30 years ago. Not the bucks we are putting away now as they will not compound for 10 years.
We didn’t want to pay fully for our car. It was better for us to put over 20% down, get a 2.49% interest rate and have money for investments for a better return on investment and other things. Doesn’t mean that we can’t afford that car just because we decided to not pay for it fully. We plan on keeping that car for at least 10 years so there is no rush paying it off.
"I like a lot of breathing room in my budget..." I agree wholeheartedly Erin. I try to minimize the stress by minimizing the debt. I was raised to be financially conservative. Take and good luck - I enjoy your channel!
One of the richest people in town, or the state for that matter, was a bank owner that wore bib overalls, and not fancy new ones, drove an old slightly battered pickup and brought lunches from home. And if you were having trouble getting your car started he'd break out the jumper cables and help you get back on the road. He'd plunk down $20 million to buy a startup company that looked promising (I worked at such a company that he bought). But he wouldn't pay $10K for a watch. He'd wear a timex and probably one he got used at a rummage sale ;)
3:55 your household income x 2.5 In my case a house of 100,000 euro. My house is 400,000 euro with 165,000 left to pay the mortgage. I don't think I am taking any risks here. I can pay this whole house off in 8 years but have 28 years left on the mortgage.
Is someone who has their home paid for along with two vehicles paid for while having no payments and a great income considered rich? Asking for a friend.
@@traywaters1575 no, because you don't know if it's a single or double wide...among other things. having a "home" and two vehicles paid off doesn't mean you have a high net worth. about 25% of US households are debt-free, but that doesn't actually provide you with any useful information.
I think this is even more true today. ICE cars will soon be "old technology", but EV technology is advancing rapidly. Both will seem outdated/overpriced in a few years.
All I wear are these thin white cotton Hanes T-shirts - 10 each for around 30 bucks. If they stain, no problem, I use them as rags to wipe down my apartment. It' more important for me to feel good under my cloths, and that's where I put in the hard work.
Me: What do they look like? I've read "The Millionaire Next Door." 😁 Then you mention the book. ERIN! Erin ... married, but the most marriable woman on the Internet.
I am 28. I started budgeting my life starting this year. So far I have saved a lot compared to previous years. I just wish I knew stocks, HYSA, CD's nd Roth IRA when I started my first job. I currently have all of them. Folks, start investing now. There is no excuse not to do it, all you need now days is your phone. Do your research, there are tons of tutorials on the internet that can help you guide through it. Dont work for money, let money work for you!
In 2008-2010 I found out several neighbors who (in Buffett's words) had been swimming naked. They lost cars and houses. One was in denial all thru the short sale process. His loan had been listed in the legal notices as foreclosure pending, I know how much he paid for the house in 2007 and that he put a lot into a remodel and landscaping before he moved in. The current owner paid less than half the 2007 sale price - getting the remodel and landscaping for 'free.'
😂 I LOVE my plants! I have 2 fiddles, my husband and I each have a bonsai, I was gifted a money tree (didn't even know there was such a thing!) and i have succulents all over my home. My dreams to to have a whole wall of succulents one day!
We live in an image obsessed culture. People drive nice cars or wear expensive clothes to make people think they’re rich. People get Botox and cosmetic surgery to make people think they’re young. People on social media accumulate followers to make people think they’re popular. If I see someone driving a Tesla, I no longer assume they’re wealthy. I think to myself “this person spent a lot of money to impress total strangers.” The Tesla is also a way to convince people you care about the environment. It all comes back to same thing. Insecurity. If you’re secure with who you are, you won’t derive self-worth from what other people think of you.
It's a false narrative that prfessional athletes are rich, they're highly paid employee's. It's the team owners who are rich since all of them have other businesses besides the team.
I agree and wonder how many highly paid professional athletes can sustain their standard of living long after they are no longer employed as a professional athelte? I assume a majority are rich for a very short time due to living large and often are prime targets of scams, unscrupulous financial advisors, failed business ventures, and/or supporting parasitic friends or family members. Similar to lottery winners who win millions and wind up broke within 5 years or less.
It's so refreshing to seey oung people who are embracing the "saving" lifestyle as opposed to those who are going into horrible debt buying cars, clothes, etc. that they haven't earned yet.
Case in point, my b/f and I were at a local restaurant eating at the bar next to another dating couple. That guy was telling us he owned a local power sports dealership blah,blah,blah. When it came time to pay he whips out a gold AmEx. I am sure his "date" was impressed. My b/f and I just look at each other and smile. We pay in cash. We are not reminded of a meal 30 days later.
A lot of people I know that are wealthy focus on tax advantage situations. They often own a business and that can provide a lot of tax advantages with a car being owned by the business, or having the business cover the cost of a trip to Disney by speaking at a conference at there. Someone like Erin could do that by speaking at a conference on personal finance at some place nice and then paying for it via her company that provides financial advice services. This is a well-worn track on TH-cam with so many financial and real estate types having a channel based on their business.
The vast majority of people I know fall for every single one of these traps. EG: if they see someone in a Lamborghini they say something like "imagine how much spare money he has that he doesn't care about throwing that kind of money". Whenever I suggest the possibility that not everything is as it seems they just calle me jealous lol
Not to mention all of the celebrities who were paid a lot of money, but still ended up drowning in debt because, as you said, they had poor money habits, and didn’t know how to keep and grow it
Charlie Munger flew commercial until Berkshire Hathaway bought NetJets. Buffett joked that they had to install an economy seat to get Munger to fly on a business jet.
My CPA told me he has clients who dress in flannel shirts and blue jeans, drive 10 year old cars, and they're loaded. Point being, you can't tell by looking.
Erin, Here is another cracker of a video. In your videos, you have somehow found the sweet spot between expressing good information in a common sense way without being preachy or looking down on others. Thank you for the great videos 😁
Great video. And I can attest that it is virtually all true. I am worth many millions. I am writing this in a sweatshirt, in a paid for but reasonbly modest house. I drive a paid for Mazda 3. As I am retired, I do take multiple vacations a year, . but all are paid for, and none are significant to my overall net worth. In a book I am writing for Millenials, I do give an example of instead of purchasing a new car, putting $10K down, spend the $10K on areliable used car. Then take the "payment" and invest it. If they did that, when they were in their 60s they would have an account worth many hundreds of %1,000s. The more the average person, makes it a priortity to invest, the more likely they will be wealthy. Oh one thing, my wealth came from investing. I worked as a middle manage, and came from a middle class family. If I did it, so can you too.
As far as expensive cars, if you want to show off, why not rent a luxury vehicle for a day, take lots of pictures and post them? You could still drive a 20-year-old model as your daily driver.
WHAT kind of adult puts a vacation on credit? That is BONKERS!! Who raises these type of adults? How insanely dysfunctional was your childhood, to get to adulthood and make choices like that?
Debt has become normalized over the last few decades, so these folks might not be dysfunctional, but just never knew any better. With the plethora of TH-cam videos teaching financial education now, hopefully they will learn ..
I am not what I think I am. I am not what you think I am. I am what I think you think I am. Seems to be what so many think buying impressive items but being broke.
Lol, "I would have just photoshopped my kids in." Seriously though, a coworker of mine was telling me once about taking her family to Disney's Animal Kingdom. I figured out that my wife and I had actually spent less per person to fly all the way to South Africa and go on "safari". Mind you we snagged an incredible deal on flights, but still.
Expensive cars are definitely not an indicator of wealth. I bought a fancy 2016 Ford fusion a few years ago and I was as poor as dust. I don't know why I needed to buy such a luxury vehicle. It was a big mistake.
I splurged on a Tesla that we paid cash for. Thought it would be cool to no longer pay for gas. Paid off house, no debt. No one knows except my close friends, most of which are much richer than I but also don’t show anyone. The way someone could tell is we like to talk about investments, stock and otherwise.
Living out of a car seems like the play but not as a necessity, but as a life style. Healthcare and housing to be avoided in the states. Make your dental care visits into a international vacation and still pay less than a paying for that visit in the states.
The amount of money people spend on special/important events (birthday parties, weddings, funerals, etc.) can be exorbitant and way out of proportion to their actual wealth.
when discussing cat loans I think it is important to provide perspective. Given individual median income is 37k someone making the median income could afford a $308 car payment per month. Assuming an 8.5% interest rate good not great credit and 48 months you could buy a 14k car. Or another way to look at it average car price is now 47k would be a $930 payment so you would need an income of 112k to afford the average car or roughly be in the top 20% of income earners
My struggle is "what am I saving for?" I'm 40 and think I have retirement under control, but am trying to build wealth beyond that. I don't really know why other than I want to be smart with my money and I like to see it grow. My wife is more like "enjoy life while we still can." So am I saving it just to see it grow or should I enjoy it and take that vacation, etc.
THis is the classic idea of that book.. millionaires are many times just regular people…. I feel I’m one of them.. I am low end multi millionaire just feel like middle class...
You must be the uber-rich that the Democrat party seems to hate so much! Everytime politicians tell us they want to 'soak the rich' the middle class begins to shrink.
Great video ...again! I don't need much, I get much more satisfaction out of making donations and helping family than a luxury car or jewelry. Form over function is such nonsense to me - just the opposite of impressive!
Of course there is a few janitors in the world that started with nothing and ended with millions, like there is albino zebras, but please... Except that, another excellent video from you ty!
@@ErinTalksMoney :)). There's currently 1 in the wild, and 1 in a zoo (plus 2 others that lived in zoos in the past, one around 1880 and the other around 1975). I just googled is there millionnaire janitors in the world, and it answered 3, so I was hilariously spot on!
When you can rent an excellent car for $1000 a month, but most months drive your BMT (Basic Means of Transportation) into the ground, why would you buy or lease a new car?
Love this video! We are in crisis mode spouse and me. When we were married it was on a very low budget. My Mom baked the cake, the mayor performed the ceremony, friends/family brought over food. Our honeymoon was 3 days in Lancaster PA and Harpers Ferry WV. The whole trip was about $500 LOL this was 38 years ago. We had a nice time and no debt on that trip. Today we are 1+ year debt free, paid off a ton of consumer debt, kids college and our mortgage, and have a few dollars in the bank. Because we were in intense debt pay-off mode for 5 years, we haven't been literally anywhere since 2016, that's 6 or 7 years. So for our anniversary, which is next week, we are going to (...drum roll...) Lancaster PA and Harpers Ferry WV, 3 days, two nights, each night is $200 plus transportation, food and entertainment we should be able to accomplish this for about $1000 - $1200 maybe a little more but we are not going to think about it just have a nice time because we can actually afford this adventure. Our first night in Lancaster we are staying in the exact same room as we had in 1985. The place we stayed at in Harpers Ferry is no longer in operation. I had to ask for a vacation day at my place of employment. When I spoke to my closest co-workers about the reason for my vacation request they couldn't believe we were going to open up our wallets and spend some bux. We have been on a strict budget for years. Some of my friends go on 2 or 3 vacations each year they, by their own admission are in personal financial doo-doo but they do look like they are doing well. Our car looks a bit rough but I don't care, it's paid for. Our net worth is approaching that magic number.
What are you going to do in Lancaster, tour ALL the farms there? Not a whole lot to do in that quiet place! But i hope you enjoy your well-earned vacation! Maybe you can catch a Barnstormers baseball game, if you dare afford it! LOL I lived relatively close to Lancaster for many years, including in 1985. never considered it a vacation destination, but to each their own! Bon voyage!
@@inconnu4961 We live about 25 miles north of Allentown in the Poconos. Really just looking for a getaway without making this into a big production. We are going to go to Sight and Sound, a few of the smorgasborg's, hit a few civil war sites, basically just wander aimlessly around, send a few dollars and swat a few gnats. Life is good when you have no debt and live a simple existence, easy to entertain ourselves.
Oh yeah lol @ 10:02 Im a welder and my gross pay is at $103,587 as of this week at the halfway point of the year. Its looking like $200,000+ this year. Im 28
Genuine questions: What does "go into debt for a vacation" mean? If I put the vacation on a credit card and pay it off within one payment cycle, does that count? What if I do a payment plan which spreads it out over months (so I am always carrying a positive credit card balance for that time interval due to the vacation) but with an interest rate of 0, and I just pay off what I need to each payment cycle thereafter?
she mentioned that it was going to take x months to pay off, so paying off during the grace period where you aren't charged interest is not going into debt.
Great information Erin. True wealth/ riches on one's life is having Jesus. All these material things will pass; eternal riches with Jesus will never perish.
a Rolex or a fine stone can be a good investment the people that buy those fine things as an investment treat it as such and never flaunt it. My father taught me that "as soon as you show the world what you have they will line up to take it from you"
I love this video Erin! I get quality brands from Goodwill. Probably never worn because they gained weight or received a gift that didn’t suit their taste. I am a mutant, though.
WOW! These stats! I haven't had a car loan since 2001 and that was only because it was -0- (Yes, ZERO) percent interest. I've always put 20% on every house I bought. I do go to Disneyworld, a lot, with a season pass! I went on 6 cruises this past winter and didn't pay more than $100 for any one of them.
@@ErinTalksMoney I am a fan of Carnival. I’ve been on others but they are just not fun to me. I’m single so I enjoy that there is always something to do. And when they give those amazing offers I just can go anywhere else! $100 for a 7 day cruise!! Plus port fees and gratuities but the cruise itself was $100 and for a single person in the room. Why I did 6 this winter.
Unreal, it’s so sad that we actually have to make a video explaining the most basic principles of wealth. It just shows how extraordinarily financially illiterate most people are.
Don't look rich...be rich.
Futile and silly objective. Be accomplished instead. Wealth should be a byproduct, not a goal.
@@jeremykeller211 Not futile or silly, but an effective motivator, and entirely realistic. While reaching for wealth, the byproduct we got was becoming more accomplished!
@@dstevens518exactly. Better to be wealthy verses look wealthy. There are many out here masquerading as wealthy but secretly living paycheck to paycheck with cc maxed out.
Very true - keeping in mind that "being rich" is much more than monetary wealth.
In 2003 we were approved for $400k the relator started talking about $400k listings. We told her our Budget is $150k and that is what we bought. 2022 that house is already paid off. We have been with $0 debt (other then the mortgage) for decades.
Live for you not for strangers.
I find as I grow older and continue to build wealth by living beneath my means, the things I used to covet and not be able to afford, now become the things I can afford but no longer covet. Funny, eh?
Life has a funny way of doing that. You’ll want what you can’t have. When you can have whatever you want, you don’t really want it. Applies to so many things: relationships, jobs, etc
For sure - I remember when I was a late teen early twenties I wanted a big income so I could buy all these nice things. Now in my mid thirties - I just want to chill on the porch with my husband and my dog and to go to bed early 😂
I grew up in Southern California during the early 2000s. I saw many families that "had it all": luxury cars, huge homes, amazing vacations... until the market dropped and they "moved". It was all an illusion. My wife and I live below our means and sometimes it is hard when I see others with things I would like to buy, but have decided to pass on. It makes it a lot easier when I remember my teen years and the lesson of that time. I have no idea how they are really doing, but I know how I am doing and continue to focus on that.
Almost every person I speak to have dumb finances. Buying a new car to save money. Putting 100,000 in a 2% savings account because they lost money in the stock market and don't trust it anymore. Buying solar panels to save on energy. Trying to shop for energy prices.
Buying a house and car you can easily afford and putting all your other money to work in the stock market is just too hard for most people. And then complain why they have to work until their 70s...
Yes - my sister-in-law and her family is a classic example of that! Ridiculous cars, obscene McMansion, annual trips to Europe and Hawaii. And then one little hiccup in the economy and the McMansion had to go on the market and they were sucking air for awhile. Now it’s back to their spending ways - I can’t imagine they have more than a few nickels put away for retirement, which is sneaking up on her fast…….🙄
Living below your means is very hard in todays world. The problem in this country is that Finances are not taught in school. I really think it should be a required class in grade school all thru College. People get into bad Financial Debt early in life & it can act as a Financial prison. From credit card spending to Buying that car you want.
@@ag4allgood living below your means: save money each month, only spend money you have left.
Stop pretending borrowing money for clothes and a car is normal. It isnt. When you learn how to add and substract you know enough about finance not to go into debt.
@@Ferdinand208 Don't forget to add doing a BUDGET to see exactly where the money goes & how to reduce your expenses. When you have the House & Car paid off with no credit card debt is really when you see the improvement to your Finances. Inflation will still be felt but its not going to ruin your Financial life ! Emergency fund of 6 months saved / fully funded Roth & 401K are also goals to hit before the house & car are paid off.
"nothing to prove to anyone" has to be one of the best financial advice lines I've heard on youtube. The whole point of building wealth is to provide financial security for you and your family - or if you are more philanthropically inclined, causes that you cherish. Financial security provides you with freedom from the anxiety and stress of want and that is essentially "having it all" - at least in a financial sense.
Vacations are the biggest line item in my retirement budget. I love vacations and I am hoping to achieve a level a wealth that allows me to take a 15-20k vacation each year
Looking wealthy is actually a negative. I can’t afford to look wealthy now, but even if I could, I wouldn’t want to, because then you’re more of a target for scammers and criminals. Why would I want to paint a giant target on my back?
I live in a city where rich parents send their kids to university, and those kids often drive outrageously expensive exotic cars painted in look at me custom paint jobs, like a chrome like silver or screaming loud pink. All I ever think when I see them is "Why do you insist on marking your kids to be kidnapped?" It HAS happened before, and I'm sure it will happen again.
That is a tenant of the Millionaire Next Door theory. You cannot tell they are wealthy.
I don't think there's anything wrong with other people seeing you as being rich just because you are going about your normal day enjoying the things you value.
I'm certainly not going to drive a hateful little pile just to keep people off the mark, thinking I'm broke.
I like nice cars. I'm going to keep driving nice cars, that fit in my budget, regardless of how others might perceive me in them.
I'm your typical millionaire. I'm a t shirt and blue jeans guy. I shop at Walmart or Michaels for my t shirts. I still drive my 20 yr old Honda. House paid off. I fully retired at 55. No show, all dough. I love it. Nobody looks at me or ask me for money. Under the radar is what I like.Good video.
Yep - I have a net worth well north of $1-million and my daily driver is a ‘97 Chevy Cavalier! My wife hates it, but I love it since it flies completely in the face of what today’s vacuous “social media society” would tell you to do with your money……..😂
May I ask what you do in your retirement days now?
Love it!
Ditto. I've lived frugally but not cheaply (there's a big difference). I'm a few years older than 55 and still working but I could retire any time I wanted. But I enjoy what I do, these days there's a lot of mentoring and I like that. So as long as that continues, and the company doesn't annoy me, I'll hang around for a bit yet. But I've got to say, any sacrifices I made by not buying this or that have been well worth it. I can't even remember most of the things that at one time or another I would have loved to have, they meant that little to me in the end. Why go into debt for that?
Me too
I was a Flight Engineer and I saw this first hand. I met many Captains that were broke despite making 30% more than me. They were so broke that they would take the catering off the airplane because they couldn't afford to eat even though we were paid Per Deim for food. I on the other hand saved 25 to 40% of my pay and invested wisely at times. Now I am wealthy beyond my greatest dreams. I lost my job because the airline that I worked for sold the airplanes that had Flight Engineers and I wasn't a pilot. By then I was ready to retire anyway. The company was up front with us and told us they were getting rid of the airplanes that had Flight Engineers. I used this time to buy a new car for cash and a new home for cash. So I have been retired for 11 years and have no problem meeting my needs and wants. Since I traveled the world for 34 years and have been to over 50 countries I don't take vacations now. I do like nice cars but I pay cash for them. Ir's my only vice. I Don't buy new cars to impress anyone I just like new cars. When you have no bills you need a lot less money to live. More money to invest.
Because all these Capt.are humpin around like hell and spending their money on ladies!!!
This is what I think is a great retirement. Did it right while you worked, weren't phased in the slightest when they pulled the plug on your job, have money to indulge in things you like, not for the purpose of showing off, but cause you actually like them (I love cars too). Thanks for showing us an example of how to get control of your money and make it work for you, and not the other way around...
This reminds me of when my husband was still heavily and surely gambling our funds away and we were virtually poor (other than our 401K that, thank goodness, we never touched). He would walk about to his aircraft at the airport while wearing his airline pilot uniform and the women would continuously flirt with him while they boosted his ego. If only they knew we couldn't even pay for our utilities!
Well, we are past that stage fr a long time ago and have recovered fr the loss bc we became smarter w our finances after his rehab. But my point is, you will never know fr one's facade what is really going on in one's life.
Living a Stealth Wealth with teenagers is really hard. At that age they admire social media, their friends have much nicer cars...even nicer phones.....and it's hard that we as humble parents are hiding our net worth to them. We COULD have nicer things, but choose to spend most of our money in investments such as 401k, Roth IRA, 529, that create value...
Why hide? We explain in great depth and very frequently why we have made our choices.
@@lijohnyoutube101 If they knew our net worth....they would expect more than a $5,000 beater Toyota at age 16.....yes, they are not entitled, they need to earn things on their own but it just avoids the back and forth bickering and debates.
Is there a possibility you are depriving your children of a much more important thing than stuff? A chance to understand why there are things they can’t have and the long term goals it supports? It might be worthwhile to have open conversations about those things so they can at least be exposed to a different way than the world shows them.
@@michaelswami We teach them to work, save, invest.....we also raise them poor purposely. The reality is most 16 year old they just see an iPhone 14 and a Tesla as a sign of wealth and status...not an investment portfolio....we tell them do well in school but especially work hard in life and anything is possible. Most of their friends don't work ....but drive nicer cars than even myself to school....told them to pick poorer friends than....hahahaa
My 15 year old daughter attends a private school, so some of her classmates definitely come from affluent families. We tell her all the time that you can't judge a book by its cover and that many of these folks are not as wealthy as they try to appear. We drive decent, but very ordinary cars - that we paid cash for. We worked hard to pay off our house early. We contribute fairly aggressively to to our retirement accounts and we live well below our means. If we knew the truth about these "rich" people, it's doubtful that there are many of these people that I would be willing swap finances with. I imagine that our financial situation is far better than most of the people who are trying so hard to appear wealthy.
Great information Erin. The car payments over 48 Months are nuts. I always saved 50% down and always had it paid off in 24 months or less. This gave me time to save for at least 8 years to build up for the next 50% or more down. This is so important to teach kids. All three of my kids now use this formula.
I like your auto buying formula.
Learn how to take care of a car and buy (cash) a “good” used car that you can repair yourself. That’s my “formula”. Been using this way of buying and maintaining my transportation ever since high school and haven’t made a payment yet. Don’t put yourself into financial bondage on a depreciating asset. One of my neighbors chooses to lease a fancy car, another one buys a new car every few years, both enjoy their cars but have to borrow money to pay for college. I on the other hand, was able to pay cash for my kids 12 years of university.
My sister married a Kirkland. ( I tell her that she just needs to go get some of that Kirkland Brand money from her Costco sales!! LOL)
If you have to finance a car for more than 4 years in order to "afford" it, then you really can't afford it. Once a car is paid for, keep driving it and save for the next one. It's a great feeling to get to the point that you don't have to finance at all. Driving off the lot in a car that you paid cash for is an awesome feeling.
Paying cash for a car is so much better than financing one. The only time I ever finance a car is when they’re knocking serious money off of the price. Then I pay the car off within a month of the purchase.
Great info. For cars we never have more than one car payment. Finance it over 72 months but make double or triple payments to pay it off in 2-4 years. We trade them in paid off in full plus a check (never roll negative equity). Don't buy more house than you need. You are stuck with larger repairs, larger tax bill, and larger utility bills as long as you own that house. Never ever go into debt for a vacation. Save up before you go. I travel for work so I rack up all the points and credit card rewards so we travel for almost free when we do travel. Always avoid monthly payments on anything. It is crazy how fast $200 here, $400 there. $500 there etc eats up a paycheck. Just remember there are a lot of people faking it until they make it (unfortunately most don't) out there. The Jones are broke don't keep up with the Jones. Keep the videos coming. Always interesting to watch.
Credit card rewards to pay for vacations is my favorite way to travel!
Erin is calling it like it is she is spot on. That the kind of woman my son needs. He seems to like the phony type and it will never workout
He definitely needs a lady who has a good financial head on her shoulders!
I love that you brought up the misconceptions people have regarding wealth and profession. I am a lawyer married to a teacher and people often assume I am the wealthier one, but they are completely wrong lol. A lot of teachers beat the lawyers and doctors I know as far as wealth accumulation.
It is a challenge to wisely transition into spending on certain things while being a saver at heart. Some things I've learned can be worth spending "more" on: education to improve yourself, experiences with family that create memories, things that improve your health, and things that save you time. I've still done even those things in as frugal a fashion as reasonably possible but I've been more willing to spend when I realize the value.
You are 100% correct! There are definitely areas worth spending in! And you have a great list here
Work a state-city job 30 years in California get a CALPERS pension close to 100 K USD annually plus COLA
sheesh, that's peanuts for California public officials isn't it?🤣 Definitely peanuts compared to Fauci's federal pension of over $400k/yr.
My wife drives a 2020 Chevy Equinox. She was rear ended one day, backed into two days later and backed into again two weeks later. So, tell me again WHY do I want an expensive car???
oh my goodness!
When did a 72 month car loan become the norm? None of mine have ever hit 48 months
Interesting video Erin. Many people would rather look rich than actually be rich
I think that's definitely the case
I was just invited to my neighbor's birthday party and everyone they knew was invited and the house was packed full of people that didn't know each other. It was obvious my neighbors were not only showing off how many people they are connected with but how well they can throw a $$$ party.
What did they have at the party that made it expensive? We throw parties, we usually just buy some soft drinks and let others bring food pot luck style.
@@toddspangler6669 This was a party for their 1-year-old daughter. They had:
- a clown
- a live band
- lots of decorations
- 6 cakes
- fridge packed full of food and drinks (Bar-B-Que)
- I don't know how many presents were from guests but there was a lot.
I guess they are very proud of their little girl.
Wow!
@@acidicK9 Wow!! That is way overboard for a 1yr old.
Well I do love a nice get-together - but we just throw food on the grill, call it a potluck and play games. Great way to spend a Saturday, great memories, and it doesn't have to be expensive!
House should be no more than 2.5 times household income... You broke my heart there... I have a house that's around 5 times household income and I consider myself lucky since we are able to earn more than average .. the average in my city is more than 10 times the average household income it's crazy here.
haha! I know that rule doesn't work in most places! Like I said, I like to ultra conservative!
I read 'the millionaire next door' about every three years to keep grounded. It keeps my net worth from backfiring on me and doing harm. It can be found at used book stores, or the public library for free. I highly recommend it.
Buy a Toyota and keep it for 20+ years. That's been my game plan.
Average car on the road is 12 years old, most aren't Toyotas.
@@hogroamer260 ok
my car is 15 years old - I'm aiming to keep it for 20! Wish me luck!
We just bought our first home and decided to buy it outright since it was a modest home in Ohio for 160k. It’s going to be great not having a payment on it. I’ll need the funds to pay for my classic truck restoration.
I hope you have fun restoring the truck!!
@@ErinTalksMoney Thanks Erin! I’m having it done at a shop. I don’t have the time, patience, or knowledge to tackle a project like that. I enjoy your content a lot. If I’m not mistaken I believe you’re a Michigan native, like myself?
I bought 3 t-shirts back around 2001 and used them daily for office work, then for play/camping, then later for hard outside labor. Still have one of them left. They would have easily been worth $250 each from the value I got out of them in 2 decades of use, but I didn't pay anywhere near that. I just wish I could buy that same exact quality shirt now.
I hear you. Found some heavy flannel shirts on sale, 80% off. I liked them, and the lovely thought they looked nice, so I purchased five of them; she rolled her eyes at me. Used them as light jackets. Wore one completely out (still hanging at the back door for dirty work), gave one to a friend who needed a light jacket, routinely wear the third and just looked under the stairs to find four and five, still with price tags. Retail price was $27.75; purchase price was $5. Year? 2005. Not here to impress anyone (except the lovely), so what do I care if they are way, way out of fashion.
Ha ha
I still wear heavy duty t shirts from 1995 or so, still wear them once or twice a week running my painting business, literally 25+ years of use of made thousands wearing them
Those who do not appear wealthy are the ones to lookout for.
Go read the Millionaire Next Door. Great book.
He definitely needs a lady who has a good financial head on her shoulders!
@@ErinTalksMoney Definitely takes both to work in unison to be successful in marriage, family, health, finances, etc. Going strong after 35-years! Great channel and best to you and your hubby Erin!
I drive Honda CRV fairly new, Live in a huge home in Texas in upscale area, take tons of vacations to Mexico and Philippines, don't care about brands just want quality products tools or clothes, and I am business owner. I am comfortable in life
Sounds like an amazing position to be in 👏👏
@@ErinTalksMoney Yes, But I am almost 60, that is the down side but I am trying to make the most of each day by traveling until my health says no more.
You are hitting the mark of truth and wisdom more and more Erin. Logical and wise well beyond your age. My neighborhood is filled with people who post where they are at or what they are doing every week. My guess is most live paycheck to paycheck. You should have a million subscribers. Younger people need to be listening to your great advice.
We write a check for cars and keep them 15+ years. If you cannot do that, you should not buy it ! That means you have to save a couple years to get that 10K car, then that is what you do. Bought just the right amount of home. Now that our daughter is out of the house, we have spare room and it is perfect for us to age in. We take great trips multiple times a year. Our spend is about 20K per year for travel. Although we have good income now, it has been decades getting here and our wealth was built on the 50 and 100 bucks a month we put away 30 years ago. Not the bucks we are putting away now as they will not compound for 10 years.
Love this! This is how it's done!
We didn’t want to pay fully for our car. It was better for us to put over 20% down, get a 2.49% interest rate and have money for investments for a better return on investment and other things. Doesn’t mean that we can’t afford that car just because we decided to not pay for it fully.
We plan on keeping that car for at least 10 years so there is no rush paying it off.
"I like a lot of breathing room in my budget..." I agree wholeheartedly Erin. I try to minimize the stress by minimizing the debt. I was raised to be financially conservative.
Take and good luck - I enjoy your channel!
One of the richest people in town, or the state for that matter, was a bank owner that wore bib overalls, and not fancy new ones, drove an old slightly battered pickup and brought lunches from home. And if you were having trouble getting your car started he'd break out the jumper cables and help you get back on the road. He'd plunk down $20 million to buy a startup company that looked promising (I worked at such a company that he bought). But he wouldn't pay $10K for a watch. He'd wear a timex and probably one he got used at a rummage sale ;)
3:55 your household income x 2.5
In my case a house of 100,000 euro. My house is 400,000 euro with 165,000 left to pay the mortgage. I don't think I am taking any risks here. I can pay this whole house off in 8 years but have 28 years left on the mortgage.
Erin way to go 👏 great video!!!! Some people show money 💰 but I like to grow money by listening to videos like yours!!!
growing the money is better in my book - at least in the accumulation years 😊
Is someone who has their home paid for along with two vehicles paid for while having no payments and a great income considered rich? Asking for a friend.
Yes. That would be in the top 10% of the country I believe in terms of net worth
Well it sounds like you are in a wonderful position! Why not count yourself as rich
@@traywaters1575 no, because you don't know if it's a single or double wide...among other things. having a "home" and two vehicles paid off doesn't mean you have a high net worth. about 25% of US households are debt-free, but that doesn't actually provide you with any useful information.
As luxury as a car is, it loses value everyday. It’s a depreciating item ironically used to show how well off one is. NO
I think this is even more true today. ICE cars will soon be "old technology", but EV technology is advancing rapidly. Both will seem outdated/overpriced in a few years.
All I wear are these thin white cotton Hanes T-shirts - 10 each for around 30 bucks. If they stain, no problem, I use them as rags to wipe down my apartment. It' more important for me to feel good under my cloths, and that's where I put in the hard work.
Me: What do they look like? I've read "The Millionaire Next Door." 😁
Then you mention the book. ERIN!
Erin ... married, but the most marriable woman on the Internet.
😂😂😂😂
I am 28. I started budgeting my life starting this year. So far I have saved a lot compared to previous years. I just wish I knew stocks, HYSA, CD's nd Roth IRA when I started my first job. I currently have all of them.
Folks, start investing now. There is no excuse not to do it, all you need now days is your phone. Do your research, there are tons of tutorials on the internet that can help you guide through it.
Dont work for money, let money work for you!
Wealth is to be discovered not announced.
Toys, men try to flaunt fake wealth with four wheelers, side by sides, snowmobiles etc. As a man I'd rather have the actual wealth.
In 2008-2010 I found out several neighbors who (in Buffett's words) had been swimming naked. They lost cars and houses. One was in denial all thru the short sale process. His loan had been listed in the legal notices as foreclosure pending, I know how much he paid for the house in 2007 and that he put a lot into a remodel and landscaping before he moved in. The current owner paid less than half the 2007 sale price - getting the remodel and landscaping for 'free.'
To me, wealth is the fact that your fiddle leaf fig tree is so tall and healthy looking. stellar.
😂 I LOVE my plants! I have 2 fiddles, my husband and I each have a bonsai, I was gifted a money tree (didn't even know there was such a thing!) and i have succulents all over my home. My dreams to to have a whole wall of succulents one day!
Keith Crain, publisher of Automotive News, stated the industry runs on credit. See a luxury car out there? Very good chance it's leased.
We live in an image obsessed culture. People drive nice cars or wear expensive clothes to make people think they’re rich. People get Botox and cosmetic surgery to make people think they’re young. People on social media accumulate followers to make people think they’re popular. If I see someone driving a Tesla, I no longer assume they’re wealthy. I think to myself “this person spent a lot of money to impress total strangers.” The Tesla is also a way to convince people you care about the environment. It all comes back to same thing. Insecurity. If you’re secure with who you are, you won’t derive self-worth from what other people think of you.
It's a false narrative that prfessional athletes are rich, they're highly paid employee's. It's the team owners who are rich since all of them have other businesses besides the team.
I agree and wonder how many highly paid professional athletes can sustain their standard of living long after they are no longer employed as a professional athelte? I assume a majority are rich for a very short time due to living large and often are prime targets of scams, unscrupulous financial advisors, failed business ventures, and/or supporting parasitic friends or family members. Similar to lottery winners who win millions and wind up broke within 5 years or less.
It's so refreshing to seey oung people who are embracing the "saving" lifestyle as opposed to those who are going into horrible debt buying cars, clothes, etc. that they haven't earned yet.
Saving leads to a life of more opportunities!!
Case in point, my b/f and I were at a local restaurant eating at the bar next to another dating couple. That guy was telling us he owned a local power sports dealership blah,blah,blah. When it came time to pay he whips out a gold AmEx. I am sure his "date" was impressed. My b/f and I just look at each other and smile. We pay in cash. We are not reminded of a meal 30 days later.
A lot of people I know that are wealthy focus on tax advantage situations. They often own a business and that can provide a lot of tax advantages with a car being owned by the business, or having the business cover the cost of a trip to Disney by speaking at a conference at there. Someone like Erin could do that by speaking at a conference on personal finance at some place nice and then paying for it via her company that provides financial advice services. This is a well-worn track on TH-cam with so many financial and real estate types having a channel based on their business.
It's a slippery slope. It's not as simple as youtubers say. TH-camrs aren't willing to write tax opinions.
@@joeb1522 for sure
Slapping a sign on your car that says Pete’s barbecue, or Joe’s plumbing
Does not mean you get a full deduction of the car
The vast majority of people I know fall for every single one of these traps. EG: if they see someone in a Lamborghini they say something like "imagine how much spare money he has that he doesn't care about throwing that kind of money".
Whenever I suggest the possibility that not everything is as it seems they just calle me jealous lol
oh goodness! Well at least you can ensure that you are handling your finances wisely 😊
Not to mention all of the celebrities who were paid a lot of money, but still ended up drowning in debt because, as you said, they had poor money habits, and didn’t know how to keep and grow it
T-shirt and sweats
Best outfit ever!
that's just lazy...Suit Up! -Barney Stinson
Excellent info, you’ve made my day👍
woo-hoo!
Charlie Munger flew commercial until Berkshire Hathaway bought NetJets. Buffett joked that they had to install an economy seat to get Munger to fly on a business jet.
😂😂😂 I love that! Warren Buffett and Charlie Munger have to be the best duo that have ever existed
My CPA told me he has clients who dress in flannel shirts and blue jeans, drive 10 year old cars, and they're loaded. Point being, you can't tell by looking.
250,000.... where I'm from that's a very luxurious home...
Erin, Here is another cracker of a video. In your videos, you have somehow found the sweet spot between expressing good information in a common sense way without being preachy or looking down on others. Thank you for the great videos 😁
Easy credit can be one of the most dangerous things. Remember, you are still paying for something you probably can’t afford.
Great video. And I can attest that it is virtually all true. I am worth many millions. I am writing this in a sweatshirt, in a paid for but reasonbly modest house. I drive a paid for Mazda 3. As I am retired, I do take multiple vacations a year, . but all are paid for, and none are significant to my overall net worth. In a book I am writing for Millenials, I do give an example of instead of purchasing a new car, putting $10K down, spend the $10K on areliable used car. Then take the "payment" and invest it. If they did that, when they were in their 60s they would have an account worth many hundreds of %1,000s. The more the average person, makes it a priortity to invest, the more likely they will be wealthy. Oh one thing, my wealth came from investing. I worked as a middle manage, and came from a middle class family. If I did it, so can you too.
As far as expensive cars, if you want to show off, why not rent a luxury vehicle for a day, take lots of pictures and post them? You could still drive a 20-year-old model as your daily driver.
Or take it for a test drive!
I've read stories about people doing exactly that!
My house is about half of your rule (2.5X household income). However, we do a week getaway every year to an all-inclusive.
I do think a good (paid in full) vacation is well worth it!
WHAT kind of adult puts a vacation on credit? That is BONKERS!! Who raises these type of adults? How insanely dysfunctional was your childhood, to get to adulthood and make choices like that?
Debt has become normalized over the last few decades, so these folks might not be dysfunctional, but just never knew any better. With the plethora of TH-cam videos teaching financial education now, hopefully they will learn ..
@@dstevens518most people don’t seek financial info on the internet. Like you said, dent has become so normal
I have had a number of people tell me they do this - it's crazy! I hope they learn from it and don't do it going forward!
But they get points
I am not what I think I am. I am not what you think I am. I am what I think you think I am. Seems to be what so many think buying impressive items but being broke.
Lol, "I would have just photoshopped my kids in." Seriously though, a coworker of mine was telling me once about taking her family to Disney's Animal Kingdom. I figured out that my wife and I had actually spent less per person to fly all the way to South Africa and go on "safari". Mind you we snagged an incredible deal on flights, but still.
OMG! That’s crazy!
We prepay our flights and hotels. Then when on the trip we feel like we can eat wherever we want and buy a few souvenirs and not feel guilty.
Expensive cars are definitely not an indicator of wealth. I bought a fancy 2016 Ford fusion a few years ago and I was as poor as dust. I don't know why I needed to buy such a luxury vehicle. It was a big mistake.
😂😂😂
Good advice Erin, thank you.
Thanks for watching Keith!! 😊
I splurged on a Tesla that we paid cash for. Thought it would be cool to no longer pay for gas. Paid off house, no debt. No one knows except my close friends, most of which are much richer than I but also don’t show anyone. The way someone could tell is we like to talk about investments, stock and otherwise.
Living out of a car seems like the play but not as a necessity, but as a life style. Healthcare and housing to be avoided in the states. Make your dental care visits into a international vacation and still pay less than a paying for that visit in the states.
The amount of money people spend on special/important events (birthday parties, weddings, funerals, etc.) can be exorbitant and way out of proportion to their actual wealth.
Wealth is quiet, Rich is loud, Poor is flashy.
when discussing cat loans I think it is important to provide perspective. Given individual median income is 37k someone making the median income could afford a $308 car payment per month. Assuming an 8.5% interest rate good not great credit and 48 months you could buy a 14k car. Or another way to look at it average car price is now 47k would be a $930 payment so you would need an income of 112k to afford the average car or roughly be in the top 20% of income earners
:) I'm a dog person.
Good job lady 😊👍
Thanks Kurt!
"I would probably just photoshop my kids into Disney photos." 😂 You're my kind of gal, Ms Erin
My struggle is "what am I saving for?" I'm 40 and think I have retirement under control, but am trying to build wealth beyond that. I don't really know why other than I want to be smart with my money and I like to see it grow. My wife is more like "enjoy life while we still can." So am I saving it just to see it grow or should I enjoy it and take that vacation, etc.
Is there a happy compromise? She gets a decent vacation, and you SAVE the difference?
Your list is missing toys: motorcycles, boats, trailers, and RVs.
Very accurate.
THis is the classic idea of that book.. millionaires are many times just regular people…. I feel I’m one of them.. I am low end multi millionaire just feel like middle class...
You must be the uber-rich that the Democrat party seems to hate so much! Everytime politicians tell us they want to 'soak the rich' the middle class begins to shrink.
Great video ...again! I don't need much, I get much more satisfaction out of making donations and helping family than a luxury car or jewelry. Form over function is such nonsense to me - just the opposite of impressive!
Of course there is a few janitors in the world that started with nothing and ended with millions, like there is albino zebras, but please... Except that, another excellent video from you ty!
I literally googled if there was an albino zebra - turns out there is 😊
@@ErinTalksMoney :)). There's currently 1 in the wild, and 1 in a zoo (plus 2 others that lived in zoos in the past, one around 1880 and the other around 1975). I just googled is there millionnaire janitors in the world, and it answered 3, so I was hilariously spot on!
When you can rent an excellent car for $1000 a month, but most months drive your BMT (Basic Means of Transportation) into the ground, why would you buy or lease a new car?
Love this video!
We are in crisis mode spouse and me.
When we were married it was on a very low budget. My Mom baked the cake, the mayor performed the ceremony, friends/family brought over food.
Our honeymoon was 3 days in Lancaster PA and Harpers Ferry WV. The whole trip was about $500 LOL this was 38 years ago. We had a nice time and no debt on that trip.
Today we are 1+ year debt free, paid off a ton of consumer debt, kids college and our mortgage, and have a few dollars in the bank. Because we were in intense debt pay-off mode for 5 years, we haven't been literally anywhere since 2016, that's 6 or 7 years.
So for our anniversary, which is next week, we are going to (...drum roll...) Lancaster PA and Harpers Ferry WV, 3 days, two nights, each night is $200 plus transportation, food and entertainment we should be able to accomplish this for about $1000 - $1200 maybe a little more but we are not going to think about it just have a nice time because we can actually afford this adventure.
Our first night in Lancaster we are staying in the exact same room as we had in 1985. The place we stayed at in Harpers Ferry is no longer in operation.
I had to ask for a vacation day at my place of employment. When I spoke to my closest co-workers about the reason for my vacation request they couldn't believe we were going to open up our wallets and spend some bux. We have been on a strict budget for years. Some of my friends go on 2 or 3 vacations each year they, by their own admission are in personal financial doo-doo but they do look like they are doing well. Our car looks a bit rough but I don't care, it's paid for. Our net worth is approaching that magic number.
What are you going to do in Lancaster, tour ALL the farms there? Not a whole lot to do in that quiet place! But i hope you enjoy your well-earned vacation! Maybe you can catch a Barnstormers baseball game, if you dare afford it! LOL I lived relatively close to Lancaster for many years, including in 1985. never considered it a vacation destination, but to each their own! Bon voyage!
@@inconnu4961 We live about 25 miles north of Allentown in the Poconos. Really just looking for a getaway without making this into a big production. We are going to go to Sight and Sound, a few of the smorgasborg's, hit a few civil war sites, basically just wander aimlessly around, send a few dollars and swat a few gnats. Life is good when you have no debt and live a simple existence, easy to entertain ourselves.
Oh yeah lol @ 10:02
Im a welder and my gross pay is at $103,587 as of this week at the halfway point of the year. Its looking like $200,000+ this year. Im 28
Buy auto at under 2% loan rate for five years and deduct interest and depreciation over the five years from your business revenue.
It is so much better to start the vacation with it being paid for and not have that on your mind to worry about.
Genuine questions: What does "go into debt for a vacation" mean? If I put the vacation on a credit card and pay it off within one payment cycle, does that count? What if I do a payment plan which spreads it out over months (so I am always carrying a positive credit card balance for that time interval due to the vacation) but with an interest rate of 0, and I just pay off what I need to each payment cycle thereafter?
she mentioned that it was going to take x months to pay off, so paying off during the grace period where you aren't charged interest is not going into debt.
To me, that is 1 month of debt, but fair enough! Thanks for the partial answer! :)
I've got a guy at work trying to convince me to buy a $100k pick up truck... we do make good money, but.. bruh.
Going to a famcy restaurant or buying expensive food
Great information Erin. True wealth/ riches on one's life is having Jesus. All these material things will pass; eternal riches with Jesus will never perish.
Thanks for the video great content Erin!
a Rolex or a fine stone can be a good investment the people that buy those fine things as an investment treat it as such and never flaunt it. My father taught me that "as soon as you show the world what you have they will line up to take it from you"
rolex is expensive but not rare
I love this video Erin! I get quality brands from Goodwill. Probably never worn because they gained weight or received a gift that didn’t suit their taste. I am a mutant, though.
Cheers to you, fellow mutant 🙂
I get some very decent clothes from Walmart and get complements😂 like you, it’s not how much it cost, but how well you style yourself
I've gotten many great deals at Goodwill in the past.
My shirt in this video is from a bargain store -absolutely love it!
I don't have a lot of money, but consider myself rich.
I'll keep my 2007 Honda as long as I can. 😂😊
All dough no show is the way to go’
Hopefully my future wife can be as financially conservative as you🤣🤞🏾
I bet she will be amazing!! 😊
WOW! These stats! I haven't had a car loan since 2001 and that was only because it was -0- (Yes, ZERO) percent interest. I've always put 20% on every house I bought. I do go to Disneyworld, a lot, with a season pass! I went on 6 cruises this past winter and didn't pay more than $100 for any one of them.
We just did our first cruise lasts month - had the best time! What's your favorite cruise line?
@@ErinTalksMoney I am a fan of Carnival. I’ve been on others but they are just not fun to me. I’m single so I enjoy that there is always something to do. And when they give those amazing offers I just can go anywhere else! $100 for a 7 day cruise!! Plus port fees and gratuities but the cruise itself was $100 and for a single person in the room. Why I did 6 this winter.
You can’t beat that!
Unreal, it’s so sad that we actually have to make a video explaining the most basic principles of wealth. It just shows how extraordinarily financially illiterate most people are.
Love it
Generally speaking wealthy individuals have good hygiene. Specifically good teeth
6:20 I know it's a little off-topic but **cough** Clarence Thomas.