I wish I knew this when I was 18. I was encouraged by everyone to take out loans for school. It’s “good” debt they told me. For so many years I had to live with this horrible decision. I felt so hopeless I just went into more debt with credit cards because I was so much in debt already why not just a little bit more? I’m going to be in debt forever anyway. 20 years of my life like this. I finally got it together and paid it all off and will never do this again. The freedom from debt is amazing.
I am so inspired by you! I am 4 months away from paying off my last debt! It taught me a lot. It taught me to treasure my time like the most precious thing in the world. It taught me to not do what friends/family/society tell me to do. It taught me to think for myself. It taught me to be ok with not being liked by others. I am now 100% anti-debt. I am more extreme than you when it comes to mortgage. I rather be homeless yet a free person than be a mortgage slave, living in a home that is in the hands of the bank for the next thirty years, and IF AND ONLY IF I never get sick or lose a job in those 30 years. Otherwise, it's in the hands of the bank forever. What kind of deal is that? I set down with my numbers and the small savings I can make out of my low income. I can live frugally with a roommate for the next ten years and save on low-income enough to buy a small condo fully in cash in just ten years. Just calculate for yourself - it IS possible! Ten years of slight discomfort vs 30 years of anxiety with no guarantee of getting out of it. What's better? Mortgage in my opinion is just another trap. But otherwise, I agree with everything you say. And most people who know me, call me a loser for having such mentality. I am not like those people. When I pay for anything in cash, my body feels safe. When I pay with a loan or debt, I feel like I can't even breathe. . . .Let me elaborate... When you get a thing that you pay for with credit, you feel happy right away, right? But you did NOT earn it yet! You did not spend the time nor the energy yet to actually earn it. SO, you got your thing, got excited - but the goal is not reached yet - you still have to work to pay for it. The excitement dies off long before you finish paying for it. As you work to pay for it, you already want something else, but you still have to be paying for what's already in the past and it feels crazy. It feels like this thing is already here but I have to keep losing my money for many more months/years just because it's here. It's all backwards: you end up working NOT towards a goal, but FURTHER AND FURTHER AWAY from the goal. You get this feeling like you work for nothing because the effort won't bring you anything. Whatever your effort could bring you is already in the past. It won't bring you anything in the future. Thus, the future will be empty because you know it won't bring you anything any more. In other words, your goals/stuff/things will always stay in the past, but the effort to earn them will be forever in the future. You should set a goal to achieve. Then work towards this goal. As you come closer to this goal, you anticipate it and get more and more excited. It makes you feel proud for yourself because you know you are working TOWARDS something (not away from something). Then when you have the money to pay for it - you actually feel like you deserve it and pay for it. Now, you get so excited, but there is nothing left afterwards : no payments, no time or energy to lose in the future - you already earned it! How is that not making sense to people I don't know. . .
Tim, 50 years ago the standard term for a home mortgage was 20 years. What allowed people to live a decent life on a single income was that things like housing prices were much lower. My parents bought a brand new house in 1968 for $20K, which was a bit over two times my step-dad's income. In fact in those days banks wouldn't loan you more than 2.5 times your annual income. Cars were cheaper too. My parents bought a new top end Ford for $3,000 in 1967. Other things were much more expensive. For example a new color TV cost about one month's income. Other types of debt were harder to get since credit cards were much less common and also much harder to get. About the only type of card that was relatively easy to get was a Sears card. That all changed in the 80s. Even back in the 60s and 70s there was societal pressure to buy stuff.
I got a credit card because I needed one to travel ( hotel, plane etc). I was around 19 or 20. I used to then I would pay it off in full asap. Somewhere down the line it caught up with me, i used it too much. When I was broke I used it because I didnt want to ask anyone for money. When I lived on my own I just couldnt pay it all off so the interest built. I also ignored it so I could pay for rent and anything else I wanted. What I am trying to say is it starts off innocently then when the ball gets rolling it is hard to stop. Lately though my focus has been on paying it off and I am past halfway there. I actually had to ask a family member for help. It sucks. But as i reach closer to being debt free my mood is improving.
I read an article that said that when you pay for stuff in cash, your body has negative sensations. When you pay with a credit card, your body doesn’t have those sensations. This makes it easier for people to get into debt, because they’re not feeling that unease when they hand over the plastic. My niece is under 30 years old and she has 30K of debt - several vehicles, 2 phones, etc. Very sad. Old McDonalds commercial tag line was: “You deserve a break today... at McDonalds”.
Thanks for the great morning listen Tim! Even if it’s an older video, it’s STILL relevant. I’m currently tackling all of my debt. I miss the free feeling in life when I had no debt. We shouldn’t have to work 40+ hours a week just to pay a lender.
thanks for your videos, been watching for a few years. Ive paid off all credit cards, even sold my house...zero debt now. Live in an apartment with basic bills and actually holding onto my money that I earn working hard. Still planning to downsize even more to smaller apartment and save enough cash to try and buy a small place without debt. Or I may stay in a small modest apartment. The biggest lie is that you HAVE to go to a bank and buy a big house.... f em! If I lost my job today I have enough of a fund saved to last a full year and its building....I can actually breath...
43:43 I haven’t had a car payment in 3 years, and because of the cost of recent car repairs I’ve been tempted to buy a new used one. Even went to the dealership to test drive. Thanks for repositioning my perspective.
@@luzloveslife i AM so glad, i payed off like $43,000 now i owe $12,000 Hopfully bye the end of the year i Pay it off, but it feels real good to pay off, this guy Tim is real , and from now on live with the minimum You need, and use cash
Preach it Tim! You are SO right ON. I was blessed with parents who taught me from my USED Crib and third hand bib overalls that DEBT is a deadly sin. I never forgot that lesson. I do have credit cards now... but ONLY for convenience. IF a month ever came when I could NOT pay that bill... OFF IN FULL.... that's the day those credit cards would go in the trash. Yup, like you, I am a natural saver! The truth is... if you don't have the CASH for it ... you CAN'T AFFORD IT. There is a thing called a Time Horizon. That is the ability to WAIT, to put one's gratifications off into the future.. so that you can SAVE for something... to pay cash. One study pointed out that there is a direct correlation between Poverty and having a SHORT time horrizon. So, people need to learn to resist going into debt. Do NOT follow the crowd. Yes.. it is a trap. Keep on sharing your wisdom... the world NEEDS to hear this.
I have no debt but the cost of living has got me living paycheck to paycheck, feels like debt. Maybe you could make a video about that? I could relate to a lot of what you said in this video.
nothing makes sense in this society. It is all made to serve the people who control everything. The only thing that makes sense is that there's several people in the world who who have all the money and power and make the decisions and eventually they benefit from all this, while nobody questions it
Money management should be taught at HOME it's a life skill schools DON'T teach life skills!! My degree is in accounting it's up to the parents to guide thier children's education
So...in other words, "people should be bound to the circumstances of their birth" (ie which parents/home life they got). No. Schools should teach money management- everyone deserves to start of on an even playing field in terms of knowledge about it (what you do with that knowledge is up to you). Not everyone is as lucky as us to have money competent parents. I didn't grow up rich but my parents taught living within our means. Everyone did not get that. Some people have idiots, irresponsible people, or just uneducated in finances people for parents and it's no fault of their own.
@@yippehanako schools create wage slaves that's what the purpose of the system . But there's this place called the library and this other place called Barnes and nobles that have these things called books and one can educate themselves on anything they need or are curious about stop demanding that the system give you your freedom take the initiative and go take it or else you will.be a victim.of your environment.
Don’t remind me 😞 😢 . I hate the idea of work for the rest of my life .! Completely. Purchase a house in the Caribbean near the beach and open. A smalll business or 2 and stay away from America
Talking about peoole who get jealous of those who are' debt worthy'. There's the other side where those in debt are jealous of or mock those who don't qualify or don't have debt. My grandfather a successful businessman in Africa land abd real estate owner investor back in the day taught me that debt is inevitable for those who are entrepreneurial minded. However one shokd only have one debt at a time. Multiple debts are a more serious problem.
Don't live off credit cards. He you have a balance each month which never gets paid off, try looking back on your life in 20, 30 years and see all the $$$$$ that paid in interest. You allowed the creditors to own your paycheck. BTW, first back in the 1950's there were Charge Cards. You had the pay the balance in 30 days. Then came the revolving credit cards which enslaved everyone.
Amen. As an immigrant I can tell you 100% of most people's debt is due to entitlement. Maybe 1 day I will share my testimony with you. People take on too much debt relativve to their income or earning potential eg. Going to private sch to be a history major. Why? Or getting a dog on credit, stupid. Buying a car for "reliability and safety". We have been sold this lie. You can get a small car loan for a used vehicle and upgrade every 2 years. If you need a puppy, save up or adopt. Buy a smaller home with a smaller mortgage. You can always move later when your money is right.
Is it really debt free if there’s always a chance at losing what you have? Or the possibility of insurance not covering everything? Taxes are a debt to pay nationally. Money is made from debt.
Tim brother what is your opinion on banks man? I just went to cash a check at the teller and once again she was completely rude. I notice whenever my account balance is low or overdrawn they give me dirty looks and attitude. The only reason my bank ever goes red is if i get charged bank fees for stuff at the end of the month. I'm looking into alternatives cause i'm sick of paying people to be rude to me and acting like they own everybody. I don't like Credit and i don't want a Morgage so the bank has no time for me and i got no time for them. Just curios if u have ever had any issues with Bank tellers and if u have looked into some cheaper alternatives that can actually give a bit of interest to us broke guys trying to save a bit.
Imagine you worked for car dealership and this customer had the same old model for donkey years and never wants to upgrade/finance a new car. If anything he doesn't even pay for the repair bill on time too. It's only natural you will feel some sort a way towards him. In their world account balances talk. Its human nature to judge but they shouldn't show you that tho.
Nothing wrong with working..If Jesus was a carpenter why do people think life is free?? It's what rich Republicans did to the concept of working over time that now takes advantage of people..Did away with pensions and unions and here we are..
Absolutely, being debt free + having a good chunk of savings + passive income = true freedom 👍🏾👍🏾
I wish I knew this when I was 18. I was encouraged by everyone to take out loans for school. It’s “good” debt they told me. For so many years I had to live with this horrible decision. I felt so hopeless I just went into more debt with credit cards because I was so much in debt already why not just a little bit more? I’m going to be in debt forever anyway. 20 years of my life like this. I finally got it together and paid it all off and will never do this again. The freedom from debt is amazing.
@Bryan C ....look mate everyone talks about bloody debt and do nothing about it..
We should start a movement called the debt free movement 2023
Amen! I'm here for it. ❤🎉❤
June 28th 2019 marks the end of debt for me of ANY kind! In order for my future plans to work I MUST be debt free first!
Good luck. I am done with my credit card this Friday and will pay off my loans next year. I am close.
ANDYDAVIRGO
Thanks, I’ve got 2 more payments on my car lease May and June and I turn it back in.
Paying off car now, then purchasing travel trailor for cash!
This is possibly the BEST video on TH-cam!!!!!!!!!!!!!!!! Total Mindset CHANGED
I am so inspired by you! I am 4 months away from paying off my last debt! It taught me a lot. It taught me to treasure my time like the most precious thing in the world. It taught me to not do what friends/family/society tell me to do. It taught me to think for myself. It taught me to be ok with not being liked by others.
I am now 100% anti-debt. I am more extreme than you when it comes to mortgage. I rather be homeless yet a free person than be a mortgage slave, living in a home that is in the hands of the bank for the next thirty years, and IF AND ONLY IF I never get sick or lose a job in those 30 years. Otherwise, it's in the hands of the bank forever. What kind of deal is that?
I set down with my numbers and the small savings I can make out of my low income. I can live frugally with a roommate for the next ten years and save on low-income enough to buy a small condo fully in cash in just ten years. Just calculate for yourself - it IS possible! Ten years of slight discomfort vs 30 years of anxiety with no guarantee of getting out of it. What's better? Mortgage in my opinion is just another trap. But otherwise, I agree with everything you say. And most people who know me, call me a loser for having such mentality.
I am not like those people. When I pay for anything in cash, my body feels safe. When I pay with a loan or debt, I feel like I can't even breathe. . . .Let me elaborate... When you get a thing that you pay for with credit, you feel happy right away, right? But you did NOT earn it yet! You did not spend the time nor the energy yet to actually earn it. SO, you got your thing, got excited - but the goal is not reached yet - you still have to work to pay for it. The excitement dies off long before you finish paying for it. As you work to pay for it, you already want something else, but you still have to be paying for what's already in the past and it feels crazy. It feels like this thing is already here but I have to keep losing my money for many more months/years just because it's here. It's all backwards: you end up working NOT towards a goal, but FURTHER AND FURTHER AWAY from the goal. You get this feeling like you work for nothing because the effort won't bring you anything. Whatever your effort could bring you is already in the past. It won't bring you anything in the future. Thus, the future will be empty because you know it won't bring you anything any more. In other words, your goals/stuff/things will always stay in the past, but the effort to earn them will be forever in the future.
You should set a goal to achieve. Then work towards this goal. As you come closer to this goal, you anticipate it and get more and more excited. It makes you feel proud for yourself because you know you are working TOWARDS something (not away from something). Then when you have the money to pay for it - you actually feel like you deserve it and pay for it. Now, you get so excited, but there is nothing left afterwards : no payments, no time or energy to lose in the future - you already earned it! How is that not making sense to people I don't know. . .
Tim, 50 years ago the standard term for a home mortgage was 20 years. What allowed people to live a decent life on a single income was that things like housing prices were much lower. My parents bought a brand new house in 1968 for $20K, which was a bit over two times my step-dad's income. In fact in those days banks wouldn't loan you more than 2.5 times your annual income. Cars were cheaper too. My parents bought a new top end Ford for $3,000 in 1967. Other things were much more expensive. For example a new color TV cost about one month's income. Other types of debt were harder to get since credit cards were much less common and also much harder to get. About the only type of card that was relatively easy to get was a Sears card. That all changed in the 80s.
Even back in the 60s and 70s there was societal pressure to buy stuff.
I got a credit card because I needed one to travel ( hotel, plane etc). I was around 19 or 20. I used to then I would pay it off in full asap. Somewhere down the line it caught up with me, i used it too much. When I was broke I used it because I didnt want to ask anyone for money. When I lived on my own I just couldnt pay it all off so the interest built. I also ignored it so I could pay for rent and anything else I wanted. What I am trying to say is it starts off innocently then when the ball gets rolling it is hard to stop. Lately though my focus has been on paying it off and I am past halfway there. I actually had to ask a family member for help. It sucks. But as i reach closer to being debt free my mood is improving.
I read an article that said that when you pay for stuff in cash, your body has negative sensations. When you pay with a credit card, your body doesn’t have those sensations. This makes it easier for people to get into debt, because they’re not feeling that unease when they hand over the plastic.
My niece is under 30 years old and she has 30K of debt - several vehicles, 2 phones, etc. Very sad.
Old McDonalds commercial tag line was: “You deserve a break today... at McDonalds”.
@@420BLUNTLEY she’s very intelligent. But she’s been raised in comfort and very spoiled.
Thanks for the great morning listen Tim! Even if it’s an older video, it’s STILL relevant. I’m currently tackling all of my debt. I miss the free feeling in life when I had no debt. We shouldn’t have to work 40+ hours a week just to pay a lender.
thanks for your videos, been watching for a few years. Ive paid off all credit cards, even sold my house...zero debt now.
Live in an apartment with basic bills and actually holding onto my money that I earn working hard. Still planning to downsize even more to smaller apartment and save enough cash to try and buy a small place without debt. Or I may stay in a small modest apartment. The biggest lie is that you HAVE to go to a bank and buy a big house.... f em! If I lost my job today I have enough of a fund saved to last a full year and its building....I can actually breath...
I am curious how much equity did you have in the house you sold as a %
43:43 I haven’t had a car payment in 3 years, and because of the cost of recent car repairs I’ve been tempted to buy a new used one. Even went to the dealership to test drive. Thanks for repositioning my perspective.
I could listen to you talk about this subject all day! Also, I will pay off my student loans by the end of this year.... $58,000.
Hey did You play off your lomas?
@@mrchitown21 I did! Made a big payment of $18,000 in December 2019 and that was it 🙌.
@@luzloveslife i AM so glad, i payed off like $43,000 now i owe $12,000 Hopfully bye the end of the year i Pay it off, but it feels real good to pay off, this guy Tim is real , and from now on live with the minimum You need, and use cash
This is so powerful, most people are enslaved to student loans from a very young age.
I wish I could give this 100 👍🏾!!!!
You are making a lot of sense with this special presentation. Thanks for the clarity in your content!!
Preach it Tim! You are SO right ON. I was blessed with parents who taught me from my USED Crib and third hand bib overalls that DEBT is a deadly sin.
I never forgot that lesson.
I do have credit cards now... but ONLY for convenience. IF a month ever came when I could NOT pay that bill... OFF IN FULL.... that's the day those credit cards would go in the trash.
Yup, like you, I am a natural saver!
The truth is... if you don't have the CASH for it ... you CAN'T AFFORD IT.
There is a thing called a Time Horizon. That is the ability to WAIT, to put one's gratifications off into the future.. so that you can SAVE for something... to pay cash.
One study pointed out that there is a direct correlation between Poverty and having a SHORT time horrizon.
So, people need to learn to resist going into debt. Do NOT follow the crowd. Yes.. it is a trap.
Keep on sharing your wisdom... the world NEEDS to hear this.
I have two credit cards to keep a good credit so I can get an apartment sometime in the future. I would never get any loans as it’s a trap.
I love this long form, podcast style content and it’s such a great topic! I’m crawling my way out of debt now😭
Thank you so much for the support! And I’m glad you enjoyed the episode!
I have no debt but the cost of living has got me living paycheck to paycheck, feels like debt. Maybe you could make a video about that? I could relate to a lot of what you said in this video.
I'm putting that on my list of videos to make right now. Thank you for the suggestion!
I predict this man will have over 50k subs by 2021 if he keeps up the good work.
Now, he’s over 100K! 👏
No debt. Period
Credit cards build credit and debt and sink you..credit is a double edge sword..
nothing makes sense in this society. It is all made to serve the people who control everything. The only thing that makes sense is that there's several people in the world who who have all the money and power and make the decisions and eventually they benefit from all this, while nobody questions it
Im.hoping to have my student loans paid off in five years
Man, i have 12k in student loans to pay. I'm close to paying it off if i don't lose my job.
“Look at this pamphlet that we typed up”😂😂😂😂😂😂 #dead
Awesome video ! Can't agree with you more !
facts i took loans for years and never even knew what the interest rate was lmaoooo. i have seen the light
AMAZING talk 👏👏👏
i couldn’t agree more
Debt is the nasty part of life!
good talk thanks timothy
Money management should be taught at HOME it's a life skill schools DON'T teach life skills!! My degree is in accounting it's up to the parents to guide thier children's education
So...in other words, "people should be bound to the circumstances of their birth" (ie which parents/home life they got). No. Schools should teach money management- everyone deserves to start of on an even playing field in terms of knowledge about it (what you do with that knowledge is up to you). Not everyone is as lucky as us to have money competent parents. I didn't grow up rich but my parents taught living within our means. Everyone did not get that. Some people have idiots, irresponsible people, or just uneducated in finances people for parents and it's no fault of their own.
@@yippehanako schools create wage slaves that's what the purpose of the system . But there's this place called the library and this other place called Barnes and nobles that have these things called books and one can educate themselves on anything they need or are curious about stop demanding that the system give you your freedom take the initiative and go take it or else you will.be a victim.of your environment.
Say it one more time for the people in the back.
Your spending money you haven’t made yet
I call it tim talk
Great Video , great content. I will subscribe. Are you a Dave Ramsey disciple by any chance ? 😁
I want to pay my ATV loan off early, but it’s be 3.5 years too early, and I know that would ding the hell out of my credit score.
Don’t remind me 😞 😢 .
I hate the idea of work for the rest of my life .! Completely.
Purchase a house in the Caribbean near the beach and open. A smalll business or 2 and stay away from America
The only debt I will incur is to facilitate my ambitions of going to flight school.
Perfecto 🤩
Talking about peoole who get jealous of those who are' debt worthy'. There's the other side where those in debt are jealous of or mock those who don't qualify or don't have debt. My grandfather a successful businessman in Africa land abd real estate owner investor back in the day taught me that debt is inevitable for those who are entrepreneurial minded. However one shokd only have one debt at a time. Multiple debts are a more serious problem.
45:36 Societal norms were in your favor. Societal norms are negative.
Don't live off credit cards. He you have a balance each month which never gets paid off, try looking back on your life in 20, 30 years and see all the $$$$$ that paid in interest. You allowed the creditors to own your paycheck. BTW, first back in the 1950's there were Charge Cards. You had the pay the balance in 30 days. Then came the revolving credit cards which enslaved everyone.
Amen. As an immigrant I can tell you 100% of most people's debt is due to entitlement. Maybe 1 day I will share my testimony with you.
People take on too much debt relativve to their income or earning potential eg. Going to private sch to be a history major. Why? Or getting a dog on credit, stupid. Buying a car for "reliability and safety". We have been sold this lie. You can get a small car loan for a used vehicle and upgrade every 2 years. If you need a puppy, save up or adopt. Buy a smaller home with a smaller mortgage. You can always move later when your money is right.
38:40
Solid
Is it really debt free if there’s always a chance at losing what you have? Or the possibility of insurance not covering everything? Taxes are a debt to pay nationally. Money is made from debt.
👍🏾
🥳
Tim brother what is your opinion on banks man? I just went to cash a check at the teller and once again she was completely rude. I notice whenever my account balance is low or overdrawn they give me dirty looks and attitude. The only reason my bank ever goes red is if i get charged bank fees for stuff at the end of the month. I'm looking into alternatives cause i'm sick of paying people to be rude to me and acting like they own everybody. I don't like Credit and i don't want a Morgage so the bank has no time for me and i got no time for them. Just curios if u have ever had any issues with Bank tellers and if u have looked into some cheaper alternatives that can actually give a bit of interest to us broke guys trying to save a bit.
Imagine you worked for car dealership and this customer had the same old model for donkey years and never wants to upgrade/finance a new car. If anything he doesn't even pay for the repair bill on time too. It's only natural you will feel some sort a way towards him. In their world account balances talk. Its human nature to judge but they shouldn't show you that tho.
Try a credit union.
D E B T debt!
It's a scam
Nothing wrong with working..If Jesus was a carpenter why do people think life is free?? It's what rich Republicans did to the concept of working over time that now takes advantage of people..Did away with pensions and unions and here we are..