Financial Advisors React to OUTRAGEOUS Money Advice on TikTok!
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- เผยแพร่เมื่อ 9 มิ.ย. 2022
- Brian and Bo react to some of the craziest financial advice on TikTok - like how to commit mortgage fraud, why you shouldn't save money, and how to make $10k a month as a teenager.
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"Don't save your money until you get 100,000 or 1 mill" ...what
Think what he means is invest it all until you hit that 100K+ capital from investment. Issue there is that people will misunderstand that due dilegence and effort into research before astute investment is not as easy as that 😂
That’s exactly why i always spend all of my paycheck at the strip club every 2 weeks. Great minds think alike.
It's not as stupid as it sounds.
Say you became an adault 40 years ago and started saving. Every single dollar made in the 80's would be worth between 20 and 25 cents.
Not only are you likely making less than at any point in your life, so you can afford to save less, but inflation will ravage your savings.
Basically you're making your life more miserable to save a hundred bucks that will be able to buy 20 bucks worth of goods in the future, when you're making ten times or more than you were making then.
That's the 80's.
Today, a dolar saved is 20 cents spent on nothing at the end of the year. Buying a higher quality version of something you were Buying anyway on the other hand, will pay off. If you can, for example, spend $100 on a good pair of boots that will last 5-10 years, or $50 on a cheap pair that last 1-2, by the end of year 2, the cheap pair you need to replace might cost $72 bucks, which not only eat your 50 dollar savings, but put you $12 in the hole and another pair that will likely need to be replaced before the first.
Alternatively, buying a bike so as to reduce reliance on a car might pay off incredibly quickly, even if you just use the bike to go to the store, rather than to work.
Currently I would say, where possible, invest in stuff that saves you money down the road.
@@NCPhotography you gotta be trolling…unless you’re coke guy is at the strip club also.
@@NeoHellPoet$150 dollar boots last me 6 months
I made my worst financial decision this past January( 22) , paid my home off. Now i don't have that close relationship with Wells Fargo anymore .
Lol Wells Fargo is the worst.
good job... wells Fargo will you see as a better credit risk now
LoL 🤣
Only issue I had paying off loans early is it kills credit.
@@IL_Bgentyl paid off all my debt 5 years ago. My credit score is 820.
Half of the advise was basically "Here is how to commit fraud and attempt to get away with it!"
The airbnb guy assumed he could charge 700 a night and get 100% occupancy. It is very uncommon to achieve more then 70% occupancy unless using agressive dynamic pricing which adjusts price per night according to how far out someone books. If using dynamic pricing which is highly reccomended the average price per night might be 500 with occupancy of 90%. Theres almost no airbnb that has 100% occupancy with a super high nightly rate!
Also, no factoring tax, bills, damage, maintenance. Was crazy.
And rules may change on how many nights you can actually rent out
That first guy who talked about lying to the bank when getting a loan cannot even spell LOAN properly 😂
What never goes out of style, is living within your means.
My wife and I also did Dave's plan (we are completely debt free, including our mortgage), and here's what everyone leaves out and forgets: the big baby step of the debt snowball does NOT include mortgage. Before you even come close to paying it off, the baby steps are: save 3-6 months emergency fund, invest 15% of gross, invest in your kids' education (start a 529 or some other plan). If you have all those in place, then you can ALSO start paying off your mortgage, but it's not a priority over all those other things. People are misrepresenting Dave's plan.
Totally agree!
Exactly! And he even say you can have a car payment, if its just that and the house. He doesn’t recommend it but he's fine with it if it's under 50% of your income and u have no other debt (except morgage)
@@countrymusicandcher8593 Dave is not okay with car payments.
They lie because they don't want to accept his plan at face value. They need reasons to discount it so they don't need to address their own mishandling of money.
“I also would not lie on federal paperwork…” 😂😂😂 So true!
My wife and I are on Dave's plan and our net worth has shot through the roof over the past few years. With no debt besides our mortgage, we also get to enjoy money much more than those in our age/income bracket. Slow and steady works much faster than most realize.
LOL, that's because the fed has been printing money like there is no tomorrow and all assets went up. But the flip side is coming and that is when we will see who is a real investing genius, OR not.
My wife and I are on Ramsey's plan too😊👍. It has brought us closer together and given us so much peace. It worked through the pandemic, and continues to serve us well today. We're in step 7, maximizing our investing, giving generously. It comes down to 2 things, living below our means and being in agreement on the path we take moving forward.
Ramsey is for poor people that are too stupid to understand debt. Congratulations on being poor?
Go Dave
My biggest issue with Dave is his religious devotion to the snowball method. Avalanche is so much more cost effective, you can potentially lose thousands going with the snowball
I always cringe when I see people advocate for buying multiple real estate properties. Working in lending industry these are the first ppl who are stuck in bad situation when it goes bad. Make sure to do your research first.
Yeah, but they are also the reason why I got my house for 1/3 of its current value!
This out a smile on my face
Same, like when a pandemic hits and people stop their bills.
Fraud works until it doesn't. The car idea is clever but ultimately a horrid idea, if you do get caught get ready for any future business ventures real or illegal to be under heavy scrutiny. All for a car, a depreciating asset that could be taken from you for the fraud, worth it? No
I started buying some more stocks at the beginning of the year, but nothing big. Why am I treating this so harshly? I still want to be the first person in my polygamous family to make a million dollars despite the fact that others in my field make six figures per person. I am well aware of the costs associated with working more to get more money.
If the market has taught me anything, it's that it usually makes a comeback, but I can't seem to concentrate on the long term, especially because important things like my retirement and my reserve are having a disastrous impact on inflation. I need a solution and a data trajectory that I can trust as soon as it is practicable.
Wow!
I love reading this little scammy threads. There's so much effort put into them. Plus, I almost always believe the first comment is real!
can somebody delete these spam messages?
This channel really changed my life in a big way. The whole 1 dollar = 88 at retirement works out so if you can put your feet to the floor as far as saving and investing diligently 10k becomes 880k at retirement. I’ve been cutting expenses and working a little bit more and I’m steadily working towards that goal since I’m only 21 right now and it’s crazy that I can hopefully really secure my retirement because I’m starting this early.
It's amazing that you're starting at 21
I’m proud of you! Almost 24 here.
I didn't even start until 33, so you're doing great lol.
expecting a 9.8% rate of return is pretty crazy. That isn't even accounting for inflation either.
I WISH I got it into finance as young as you did. Keep it up!
For many of these strategies, it works until it doesn't.. It seems like the hysteria is coming to and end, so it will be interesting to see how this leverage works out for them.
People on tik tok clearly don't remember the financial crash of 2008. The businesses that were levered up to their eye balls in debt at the time went bankrupt, the ones that had cash on hand were able to withstand the hard times and eventually went on to grow rapidly.
Yeah, the guy saying he'd get $700/night for an entire month is being very optimistic.
@@fitonkurti1179 How you gonna remember something that happened before you were born?
Most of the people giving financial advice on tik tok are in their mid to late 20s so they should definitely remember the 08 crash. I’m 28 and I remember it vividly
Leverage works great unless deflation hits. We have inflation instead so debt financing is paying off big time.
🤣🤣 No one pays $700/night for that basic a$$ Airbnb. He's broke now... guaranteed.
That’s khang he is definitely not broke he been marked as one of the richest and wealthiest real estate professionals. People don’t realize that these financial advisors tell you how to retire with a few million but skip over how people get to hundreds of millions before they are 60. Those two types of people would not agree on money I promise, because the game is played differently
Most people leave out the spiritual component of being debt free. I have been on Ramsey's baby step 7 for 14 years (no debt, not even a mortgage). The feeling of freedom and low stress has been invaluable. I have also managed to become relatively wealthy over these years largely because I am not stressed about finances so I make long term decisions and don't stress during inevitable downturns. I am retiring in 9 months at 53 years old. Sorry tic toc, but Ramsey will make you rich if you go all in.
Congrats on your retirement!!! 🎉 🍾 here's to many more peaceful years to come! 🥂
I wanna be just like you when I grow up congratulations!
It really does depend on the individual. Seems to come down to how people _feel_ about money, which in turn is affected by how they were raised.
Personally I don't lose a moment of sleep over zero-interest debt (have 4 accounts on monthly payments, ranging from 3-12 months), but I've been working as hard as possible to pay off my credit card and line of credit because they're at 15.5% and 20% respectively.
These crazy Tik Tokkers are the reason I started teaching long-term investing for free after learning the markets for 20+ years.
These kids are insane. Budgets are important. Investing is important. Consistency is important.
If getting rich was easy, everyone would be rich. Anything worth happening takes work.
Thanks for a great video! 😀👍
I was basically doing Dave Ramsey before I heard about him. With parents that had massive credit card debt I was taught at a young age to only buy what you can afford and never carry a balance on a credit card. I built a budget and now we have paid off our house and have a net worth of 1m+. With overtime we make just over 100k the last few years. 18yrs ago we made
You should be looking to increase your income.
There are a two phrases that a immediately precede an act of sheer stupidity. One is "Don't tell the bank"... the other is "Hold my beer"
I have never watched TikTok, but it looks like it has replaced the late night “get rich quick” info-mercials… 🤪
Love the analysis of these videos!
These guys are still the best financial advisors I've found on the internet or any social media platform.
me too
No doubt...
These guys are JL Collins are my favorites.
These guys are JL Collins are my favorites.
Yep, it's sensible, considered and not prone to hyperbole. So much "advice" on social media is borderline fraud.
Liked the couple with $5 mil in assets. Sounded like they have major debt. And, as you said, $5 mil in assets does not equate to $5 mil in net worth. Not even close.
Preach!!! That popped out to me too. What are your liabilities?
‘How to make a million dollars: First, get a million dollars…’ Steve Martin
Airbnb that is rented 30 nights per month. I’m sure. I wonder what the average actually is.
Also, there are no costs, cleaning, broken equipment, utilitues
it's wild how they expect people not to do any common sense math at all. They'll manufacture a completely random token or NFT, then use the highest earning success story and act like those should be your expectations. "Buy idiotcoin! If bitcoin can go up 300000% then so can mine!"
Thank you guys for realistic and balanced opinions. True professionals👍
Money can’t buy self-discipline or respect.
I get all my financial advice from TikTok and Breaking Bad 👌
don't forget about the brilliant financial tips on the ozarks lol
I actually looked up some of these peoples socials, scary. The credibility factor is in the basement.
You two have great radio show chemistry! It was a joy to watch and informative.
This TikTok series is one of my favorites. These reactions are highly amusing!
i hope yall do more reactions, i love these
Love this Tik Tok series. I usually resort to listening on podcast but for TikTok reactions I just love seeing their honest opinions on camera.
I know myself well enough to know that I have terrible self-control when it comes to credit cards. Dave Ramsey’s plan was the best thing that could’ve happened to me at the time that it did. I am now debt-free except for my house and I don’t use credit cards anymore. It is so nice to pay cash for something, one and done. I don’t have that payment lingering around. It is such a feeling of peace. You just have to find what works best for you.
The flim flam couple at just after 10:00 are recommending to do the same thing that led to a young Dave Ramsey's bankruptcy.
This was the first vid I saw of yours and I'm already loving it! Going to check out some more!
Excellent analysis. Love the content.
First rule of financial advice - never listen to anyone who has ever been in the same room as Grant Cardone.
You guys are great!
I love these reactions!
love the guy that just openly admits to bank fraud
Wow! This was great! I love nuance.
That Armageddon sound byte in the background was awesome! Robert D Raiford reference?
I haven't heard of yall in a while and this the first video on algorithm and this video was on the money
They guy at 5:16 who wants you to be in debt is a type of a person who, after winning a million dollars in lottery, would take out a loan for house, blow the rest of the money and then get a surprised pickachu face that can't afford to make payments or pay property taxes.
Bo should post his workout routine
Diet too! Bo’s swole 💪🏽
I'm really glad you guys started doing react videos because there is a lot of bull put there on TikTok. I'm also impressed whoever edited this video used a battle theme sampled from the game Earthbound.
You guys just earned a new follower
Five years is a pretty aggressive rule of thumb for buying a home. More like 10 years.
A lot of lottery winners end up broke. It's the same reason generational wealth disappears and it all goes back to discipline and the behaviors that they've learned while becoming an adult.
Great show! Thank you for wise insight and good times. I only acquired my first credit card at age 29, right when I formed my LLC for my new business. I only use my card, still, 3 years later, for business purposes online. I just don't like debt! I know MANY people who have been crushed by debt and who live in debt. I do understand OPM and leveraging for business purposes, but have been very fortunate to grow my own company without borrowing, though VERY hard at times.
Epic new intro graphic and music! Haha
I love the notion that following ideas like, living debt free, living within your means, saving money and investing that money, paying cash for things means youll die broke…. Im sorry but no 😂. The only way youll die broke is if you follow the credit building/stay in debt system most people die poor using.
Paying cash for things is just stupid in today's day.
Exactly. When the economy comes crashing, if you pay cash for everything you're going to lose NOTHING!!!!! You're not gonna lose your house, you're not gonna lose your car, you're not even gonna lose your jet ski. If you're overleveraged, you will lose your house, you will lose your car, and they will repo your jet ski. Peace of mind is worth more than a few extra dollars.
I also find it funny that people who are always advocating for a leveraged lifestyle never actually get to the place they're talking about being. The people who have the discipline to pay everything in cash, have already proven that they could accomplish anything.
@@kaberle71 Were you dropped on your head as a child or as an adult? In what bizarro world is paying cash stupid?
Okay, really really small detail, but I absolutely love the Earthbound reference at 11:24.
Lol, I put that stress on myself when I'm young to save money for a reason (2:00), sure is mapping out where your money goes, and constantly setting money aside super fun, nope, but it means that if I want to take a month long vacation to Spain, I can and I don't have to worry about debt or my financial future because I have done the groundwork to live a freer life
I never wanted to buy a house because I plan to move relatively frequently but now that I live in a place where agents/landlords ask for so much information from you just to rent (I find it incredibly invasive😣) I am considering buying even though I think I'll move again in 1-2 years.
If I buy, I'll buy something small and
cheap (to keep the payments below what I currently pay in rent) and I might keep it as investment after I leave. Maybe. Or even if I take bit of a loss at the end, I'll sell - this might even out with the equity I will have built in the place.
Just some thoughts I'm having these days 🤔
I think this conversation really hinges on what market you are in. I live in DC. DC is pretty much recession proof, nobody ever loses their jobs, and people are always moving into the area. I can easily find a roommate to pay $1500 a month for a room. You can charge almost $2000 a month for the English basement.
I would by the property and property and rent it out so that other people are paying your mortgage. Just make sure you have money set aside for the cost of repairs. When you go to purchase the house make sure you get someone to do a architectural/engineer inspection, a full roof inspection, a plumber, and electrician to come out. Do not rely on the normal home inspector. Pay the extra $1000 in inspector fees to have a true assessment performed on the property so that way you can know what the capital needs are going to be for the property and what type of condition it's in. Pretty much every person I know, who bought a house, had some major issue happened as soon as they Moved in. for whatever reason, these issues were never found by the general home inspector. It may cost a bit more but it's going to save you in the long run.
I like Dave Ramsey but I like the money guys advice as well
Love these videos
😂. These are fun. Thank you
“When you want to make money, commit fraud” Genius. Why didn’t anybody think of this?
Dave's advice on some things is great, not so on others. I would've agreed with paying off your house when he had the baby steps first created in the 90s and mortgages were at 9-10% interest. Now with 2.75%? Not the best use of your extra money.
It's really all about what you want. Even now his core audience are those that have or have had crippling debt, those that don't or are very responsible might do better by following different advice. I personally have never had much debt thanks in part to his work and learning from my parents mistakes, but I still follow a lot of his principles because while I want to grow my wealth I personally just don't like having too much debt
Dave Ramsey is good at helping people get out of debt and control their spending. I wouldn’t take his advice on investments.
a comment on the tiktok on renting sometimes paying rent is actually less than the interest on the mortgage payment along with property tax, maintenance etc (called unrecoverable costs) which don't actually build you equity when your paying them (ie. your principal isn't getting paid down)
True. Plus a house isn’t as liquid as stocks if you need the money…I guess there is no one right way bc everyone is different
In the long run, buying and renting costs are very similar, contrary to popular belief.
I think it's so funny the Luna guy said it was a rug pull and people still bought it
A good example of what money is capable of when wielded properly is the ‘cross the country with a penny in a month.’
I am so confused about that video at 3:30, like...what the heck did I just watch?!?
I'm not even a quarter into the vid and I'm so glad I found you,... at 40!
+1 for the Wilhelm Scream at 13:05
That guy at the five minute mark. It’s a terrible financial decision to be debt free? There’s a balance there to the point made here. Lots of people are over leveraged and don’t necessarily have a plan especially in the times we’re in right now. Debt is only good if it makes you money. Great video guys!
If it makes you more than the cost of the debt, otherwise it's pointless.
At 4:00 the lady is talking about wholesaling. Its a real RE strategy, but its pretty saturated due to the "quick money" perception. Sometimes investors go to wholesalers to find deals if they're having trouble finding them themselves. You can't analyze every property as a small time investor!
the intro was fire okayyyy
To the discussion on the clip about buying vs. renting I'd add to consider not just if you're likely to live in the same place for five years, but also how stable your job is. I for instance was employed in a cyclical industry without much job security. I never knew if I'd still be employed in a year as my employment was very dependent on the state of the economy. That's quite different from being in a situation where job security is not an issue. I owned but had to live with the stress of not knowing if the mortgage obligations would sink me. Renting would have reduced the stress as it is inherently more flexible. The renter can more easily find more economical housing and more easily move to another city if necessary. Buying a home is the right choice for far fewer people than many people think.
Editors were having a blast with this one. We'll done!!!
Did The Money Guy Show actually use audio from “Earthbound” at 11:24? I was not expecting that to be mixed with my daily financial content.
When I was young my grandma gave me the best advice ever. She said never use flour in biscuits. Use sugar instead. My biscuits have been sweeter ever since. 🤦🏻
For 236 dollars you can pay for a lot of things that will be a lot better than saving it. Countless programming courses. Application fees for university. A suit for interviews.
Yea they shouldn’t have said don’t save. Save and invest in yourself first, not the stock market
Yeah, but it costs at least $50k to go to an in-state school, assuming you live at home. The application fee is the least of your worries. It also helps to get a degree that's actually useful, not one that is going to land you behind the counter at Starbucks. In that case, you should just put the $50k in the stock market.
@@darylfoster7944 If you are worried about 236 you don't have 50k to put in the stock market.
@@bogella2225 you were the one who mentioned university. Why would you apply if you can't pay tuition?
@@darylfoster7944 Grants
12:22
HEAD-LUNATIC
🤣🤣🤣
At 4:45 ,that is my idea of the negative interest rate environment
Abominable.
I can't stand tiktok. But I love seeing you both react to things
Haha, "The Big House"? Isn't that just another name for jail?
In Canada you still need 20 percent down . CMHC the banks insurance won't cover it so you need 20 percent down min.
I love Dave Ramsey. His babysteps saved me from being broke and allowed me to live debt-free, mortgage free and retire early.
Love the content. How can we buy the famous koozies?
11:22 My ears perked up. Did NOT expect to hear Earthbound music on a channel like this. We’ll played, editor 🤓
I know of that old guy being interviewed by the younger guy - he is against saving as in stick money in your savings account in the bank - he is ALL for investing which is how your dollar will turn into 88 bucks
Most of these people will be homeless with one little stumble. Some might even end up buried in the desert.
Nobody has ever had a "private loan" go bad..... Right?
How many of these TTs live in mom's basement? vs. How many have a diversified portfolio worth millions, including real estate investment? Just curious.
Hi I'm new to the channel (today, second video) and the couple at 10 min seems to be trying to execute a strategy similar to what Robert Kiyosaki promotes. What do you guys think about what Robert teaches and do you use debt to lower tax liability? I have no experience, just trying to learn and understand. Thanks
My dad doesn’t believe me Roth IRAs are good. I wish someone had told me at age 15 about them. I learned at 29. After 14 years (Well, 13) of time when I could’ve been earning, instead of a bank account. Using the principle for college but leaving the interest to grow…could’ve made a mint. 😢
0:58 This is mortgage fraud and if you get caught, you are looking at 10 to 30 years in federal prison.
The biggest thing this showcases that has plagued our current society is that everyone thinks they know better than professionals. Everyone thinks they know science better than professionals, history better than professionals, economics better than professionals etc. And these know-it-alls say stuff with confidence and dumb people want to believe then because doing what the professionals say is usually harder or hasn't ended up making rhe listener rich yet.
Dave Ramsey and FPU was the best thing that ever happened to me. I paid off my house at 34! I paid all my debts at 30 besides my house. My family is doing better than ever especially during Covid and after Covid. For the first time in our lives, we don’t have to worry if we have enough money to make it through the month. My family is secure. Now it’s time to invest beyond my 401K, not before.
The guy talking about Dave Ramsey, it was Warren Buffett who said you find out who’s skinny dipping when the tide goes out! Well I think the tide is going out.
Grant Cardone is like the real version of Coke snorting guy beating his chest from The Wolf Of Wall Street
With average Air BnB occupancy rate being in the region of 50%, the first guy can halve his income expectations straight away.
The beater car can be driven by your college kid, the wife or your sister if you need miles on it for the IRS.
How about getting an STD while doing something in someones car and then suing for damages? Some chick is getting $5M from Geico unless that judgement is reduced or reversed.
Worth it? Who knows
I much rather play it safe and follow Ramsey’s advice instead of someone who feels comfortable being in debt their entire life.
People that criticize Dave haven’t studied his program at all, they just hear clips online. And they want the shortest distance to wealth.
Now hold on a sec, you don’t need to have spidey sense for underperforming properties, what you need is the ability to convince some dumb schmuck you have spidey sense for underperforming properties. It’s a sales skill.
He's right about investing in yourself above all else
When they said don’t save I think they meant just save in a savings account or leave the money in the bank as the value would diminish to inflation
You should still keep a savings balance, no matter how old you are. You need a safety net in case of emergencies, otherwise you’ll end up losing more money by taking out debt to cover an unexpected expense.
Keep it alive guys 😁👏🏻
What some people don’t realize is without debt, you have more risk tolerance and peace of mind. Some people prefer those.