I'm really glad i discovered this channel last week, i was following afew other finance channels but yours has quickly become my favorite. As someone with well over 6 months of emergency fund saved whos been putting off buying a £30 item for the house for weeks now for fear that its 'alot of money' i know which catagory i fall into. Channels like this encourage peaple to work on improve themselves and their relationships with money little by little. Its providing valuble content to the world. keep up the good work man.
Love this feedback thank you so much! Your situation with the £30 item is so relatable i have been there myself! I very much believe we can all improve ourselves little by little and that a healthy relationship with money is as much self improvement as going to the gym.
So interesting, I relate to you so much on your story of the suit, my first job was on £15k too and my highest monthly spending time was when I was in that job and it was on needless things like designer clothes too. It shows it was an insecurity because when you're actually in a position to afford these things you don't buy them anymore really and they lose their appeal or at least that was the case for me.
Really appreciate you introducing this topic to us while being transparent and honest about your own journey… it makes the content that much more relatable.
Thank you mate i really appreciate this! At the end of the day my journey has made me who i am financially especially the mess ups. I hate that so many pretend to be perfect online when I think the truth is far more compelling.
Fascinating video as always. I definitely agree with your point that money scripts can change. I think I would have classed myself as an avoider in my early 20s, largely due to a lack of understanding and education. Fortunately I discovered channels like yours and have since educated myself. Having just taken then test I am now strongly money vigilant (and a bit money focused too)
Subscribed! amazing video, so insightful. I tend to be a 50/50 split between money vigilance and money focus. The story about the £1k suit and £15k salary sounds how I used to be with money many years ago, you clearly have moved on since then which is fantastic. It's a continuous path of learning for sure. Thanks!
Thank you! I am glad you enjoyed the video, it is indeed a continuous path of learning and that is why I thought share the failings instead of sitting here pretending I am perfect
Damo, can you do a video about switching funds. Not so much the process, that's easy to do (Vanguard here), but more the implications of when and the effects its has on the funds themselves. Say, if you partially switch a percentage or small amounts to switching the whole lot in one go. Obviously switching when its in profit would be a start. I'm interested in the ramifications and have found little on this subject, so hoping you might give it a go! Keep up the fantastic & entertaining videos
Great video (as always) Damien. The final section where you discuss your scripts is very relatable as your journey is similar to mine. You're completely right that we aren't fixed to a script from a young age. This should hopefully give plenty of people food for thought and help understand their relationship with money before it becomes too negative!
Glad you thought the video was useful and it is reassuring for me to hear that others have followed a similar path to mine. I hope you are doing well now!
Every day's a school day! Fascinating stuff Damo, will try the test later and also share the video with my children who seem to have very different attitudes to money. Will need to go through some of the papers you've cited as I guess there will be significant Nature vs Nuture debate around this aspect of people's behaviour, as there is with everything else. Great content as always, good luck getting to 100K subs.
Really interesting. I think a lot of financial “common sense” isn’t so common anymore because we don’t explicitly teach it to kids and they’re surrounded by bad examples. Basically money only brings you happiness up to a point, live within your means by budgeting accordingly, always save as much as you can, invest a proportion for your future, there’s no such thing as quick money, spread your risks, work hard to increase your earnings over time.
Great video. My parents were a mess financially and my dad ended up dying. I had to pay of 74k euros of debt for my mom. Took me 4 years. Now I'm finally done and I'm the definition of money vigilant. I make good money but I refuse to get a car and don't like buying new clothes. I call my mom regularly to ensure she's not using any creditcards and I refuse to buy things on credit. Maybe I should ease up a bit.
Great content, love the psychological insight on your channel. I used to be money avoidant most of my life, and Im a psychologist, but since I started working in finance Ive completely shifted into money worship....and since I got signed off work due to chronic illness Ive shifted into money vigilance. So I totally agree with it not being a stable trait. Very few traits are. Especially behaviours that are closely linked to circumstances and affected by conditioning. Maybe you're familiar with my colleague/mentor Adrian Furnham's work? Absolutely agree with the importance of this topic
For me I think all aspects of life need a balance. Money has to be managed, spent, made, invested, borrowed (credit, not wise to always use your own cash).
Fantastic video Damien. I'm inclined to agree with you that a person's attitude towards money can change and evolve over time, but I wonder if there is any research on how likely or often that can happen. I suspect that a significant number of people aren't able to look at their own experiences objectively, leading to belief perseverance. My 2 big criticisms of education today is that schools don't teach basic financial management or critical thinking patterns - people aren't equipped with the right tools to begin with to break out of any negative scripts we form as kids. We're just left to work these out for ourselves.
@@DamienTalksMoney actually thank YOU. You're one of the two people who talk about money and investment whose work i find, without a doubt extremely useful. Everyone else seem to be going out and parroting the same stuff. Yours is truly debate opening on the other hand. That is what we need. Not another person saying the same with different words. 🙏
@@zero-lpds Wonderful feedback. So glad you think the content prompts meaningful debate, really appreciate you taking the time to leave this comment it has made my morning!.
Really good video everything he is saying is true any millionaire l have worked for never drive a Ferrari or Porsche they love saving money buying things that make them money also they will recycle everything only the old school people think this way something that is a dying, Breed, it’s the right way. The thing is everyone’s a millionaire or they think they are because they buy a bmw when it brakes down they can’t fix it. Is that a millionaire? Great video as always remember the one thing l have learned in life nothing is what it seems never judge a book by it’s cover be the true you the one that’s happy with life.
There is no way I would provide financial information on line to a web site that required my email address. This would open me up to scams of all kinds.
Regardless the financial situation one finds themselves in, you’re always damned by someone, or yourself, no matter what you think/say/do or don’t think/say/do.
Great video, thanks for bringing ideas like this to our attention! I need to now do some research about what are possible triggers for the scripts developing. It must be quite complex I imagine. My parents are both leaning into the money avoidant group, they worked hard and have decent standard of living, but they never saved up seriously (nor took any loans, just not willing to deal with any financial stuff) I turned out quite money vigilant, but what baffles me is that my brother is pathologically money status oriented. We grew up in the same household but have such a different attitude towadrs money. I think I was concerned about my parents being oblivious to the lack of security, while my brother just learnt that living paycheck to paycheck and on top of that inflate the image of wealth is a good idea. I wonder how early kids can pick up on stuff like that.
I’m reading a George Soros’ book at the moment. A good video would be about his theory of reflexivity. Although I’m reading a different book, he has stated that the Alchemy of finance is the best book for this, in case you want to read it.
Very interesting content! With money you can invest in whatever is important for oneself. In my opinion, nothing is more valuable than lifetime, so what better investment might be there then a way to either save money systematically or to generate passive income (eg via dividend stocks) so you need less lifetime to work for the money you need? The long term goal is happiness, of course. But the best things in life cannot be bought with money but need time and devotion - for example a happy and lasting relationship.
"Facking Hell Becky" 🤣Man.. your sense of humour is right in line with mine. Love it. Also feel like we must be of similar age as i also had one of those aliens as a kid and for some mad reason believed it would reproduce. Man the stuff we believe as kids! On the financial stuff, love that you've shared part of your own story here. Mine is historically a bit dire, grew up on a council estate, mum was the sole breadwinner, dad was a lazy tw@, remember constantly struggling day to day to keep the heating and electric going let alone anything else. Fast forward to an adult and my first decent paid job i spent like an idiot, got myself in a lot of debt, ended up having to take a Scottish Trust Deed to clear it, took 5 years, got out of the financial hole i dug myself, got a better job and once the remainder of some debt is paid off next year, I should be able to invest just under 50% of my wages each month. I learnt the hard way, I'm 35 soon and it wasn't until... 2020 that i really started taking control of my financial education. Hence why I'm here and enjoy these videos. About to take that test now.. cheers for sharing & the great content as always.
Just don't be too hard on yourself for how you got into a mess at the end of the day you was raised in an enviroment where those around you didn't have good money habits.. Well done for getting yourself straight now and can't wait to hear how you get on with investing
Coming from a poor background and building wealth by hard work and some risk taking I defo have a problem with money in that I'm scared of losing it to the government who did nothing to help me build that wealth but are constantly clawing it back with taxes and inflation. I'm scared to spend it on frivolous things too because growing up poor makes me question every purchase I make. So yes I've definitely been following a script based on my own experiences.
Thank you for sharing this. Great that you can recognise this in yourself now. I have been scared to spend on myself for my own reasons and recently i have got over that by spending money on experiences, recently went climbing as an example.. all the science suggests experiences are a route to happiness over stuff. So maybe consider that as a way to get started with a bit more spending on yourself
@@DamienTalksMoney all my good memories are of doing stuff like climbing , Kayaking , cycling, motor biking, skiing, hiking etc etc. Looking back over the decades those were all money well spent to create happiness and good memories.
Moving to London with nothing changed my view on money… it was simple, make more to move out of a bedsit in a dangerous area or make less and live in deprivation and poverty for the rest of my life. I chose the former.
...and I remember those damn Aliens! We were always told you need to stick 2 of them back-to-back to make them have babies 😂 I wasn't allowed one, Mum told me they were a waste of money lol
Attitude towards money should be that knowing, money has no real value, and the state can print money whenever they want, which definitely helps inflation. Institutions likes the IMF control what the central banks can do.
Hi Damien, so glad I discovered your channel. I'm currently invested in index funds and actively managed funds. Should I buy individual shares instead of funds? is it cheaper? Is it better in the long run? I like the idea of not having to constantly watch my portfolio but would also consider anything that would increase my net worth in the long term. Cheers.
100k on to a million. Onwards and upwards. Be really nice to know the challenges you have faced to get to where you are Damien. No doubt there has been an element of luck and a lot to do with your creativity and how likable you are.
@@bernardo.daSilva If you think it is worth it i will make a video. i am sure it wont get loads of views but i think there is some really important lessons that can be discussed others can apply to their personal development.
I lost over $50K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I find one source to recover my money, at least $9k profits weekly. Thanks so much Mrs Cynthia M. Levi
ive watched many hundreds of hours of financial education content and i can confidently say that you are providing serious additional value in this space. this is good stuff
I was a financial mess. I spent every penny I had at the start of the month. I ran up credit card debt. Got a mortgage with an endowment that wouldn't cover the loan, and never increased it. I ignored letters and had anxiety about confronting my issues. I lost my job in my mid 40s, but got another really quickly, but that was the catalyst to get serious about my finances. In 5 years I cleared £22k of credit card debt. The endowment did well, and I paid the mortgage off by adding some savings to it. I hope to retire at 60 with 60%of my wage plus wife's state pension which I'm buying extra years for. I've been very fortunate, but can't help thinking, where would I be if it hadn't taken four and a half decades before getting my shit together. And yes. I grew up in a house almost in poverty. Some Christmases I got fruit and chocolate, but also lots of love.
The "Money Avoidance" chapter of this video is the most important part, I think. I feel like this kind of stuff should be taught in schools, so no-one enters adulthood without a decent understanding of finances.
Have to agree about the teaching, link this with the pension topic in previous video and I wish I had been presented with it at an early age. Luckily I guess I am classed as a vigilant and fortunately comfortable in retirement, unlike many unfortunately.
Totally agree. My eldest daughter's school ran a course (albeit a kind of add-on to fill the post maths GCSE void) on personal finance. At least it's a start.
One problem with the comments.....Here is the bitter truth, the government do not want you to be good with money. They make too much money from people spending and going into debt. They will never ever teach finance in school. Horrible to think!
It should start earlier, with small steps from parents. Mentioned study from Tang & Gilbert (1995) "Money attitudes are established early in childhood and remain fairly consistent throughout one's life.."
Hi Damien, I am currently in my first year at Durham studying maths! Awesome to know that my favourite content creator went to the same uni as me. You’ve taught me so much that unfortunately just doesn’t get taught in schools and at a young age, having only just left school/college it’s a real shame that still in 2022 I left school having no real knowledge of finances in the outside world. I know I am very lucky to have found your channel and be well educated in finances at my age and so I make sure to share your channel to my friends.
Well done for getting into Durham! Maths is no joke and such a great choice for a degree i am sure you will do well. Honestly Todd as i discuss in this, my time in education didn't really prepare me in a financial sense for the wider world at all i learn through failure essentially.. I hope you don't need to learn in the ways i did and all i can say is tuck away a little each month and stay consistent and you will do amazing! Next time you are in Castle bar have a Smenergy for me! Damo
I’m teaching my kids in the car on the way to Sunday swimming lessons. Covered inflation and mortgages so far. They are 10 & 7! Should be taught in schools
I just did the test. It looks like I am money vigilance but also money focus. To be honest I am both. But watching your channel for a long time and a few videos more than once makes it easier to understand this financial (not gibberish anymore) noise. It was difficult at the beginning but with your help, Damien is much easier. Thank you again.
Great video Damien! Your personal journey sounds similar to my own, being the same age as well. Took me until I was about 23 to realise that having credit card debt and constantly owing family and friends was no fun. Something clicked and I have transformed into a money conscious, saving, investing, workaholic type creature. Although now fast approaching 35 I’m realising that nothing is more valuable than time. So my next transition will be to create a more healthy relationship with money and enjoy non financial related things more too. Maybe by the time we are retired we will have found the perfect financial script to live by! 😆👍
Hey mate. When I was younger I was terrified of burglars. So much so my dad, who had an old jaguar car at the time, told me that badgers had stolen the famous leaping cat badge from the front of his car during the night. I was way into my 20's about to recount this story about badgers to my workmates before it dawned on me that he'd lied... -SD
HAHA! incredible mate, well at least you didn't tell the story then realise.. But what a beautiful example of how the inputs as children can stay with us long past when they probably should
Everytime i see a ferrari or Lambo I just think mid life crisis lol. I actually don't give a shit about your car or the stuff you are wearing, doesn't impress me. I'd say I'm set on having money and more of it but also stick in the cycle of, I need to buy nice things (meals, sometimes clothes but always latest tech)
Yet another excellent video. Thoughtful, relevant and candid (as well as relatable and amusing at times) As an older (Vigilant) investor, I really do hope your channel continues to grow, especially with the youngsters who I'm certain can really appreciate your approach and content. Kudos Damien.
Very similar to your good self Damo. Graduated in 2008 as a money worshiper. It's no surprise as we are sold the dream, go to uni, get in a load of debt, so you can get a great job and be rich. I then spent time at the large accounting firms and some FTSE companies and realised it's a gilded cage, where enough is never enough. I also grew up with very little money at home. Typical 80/90s working class family, single average wage income from father and stay-at-home mum. So when I transitioned (how 2023...) to money vigilante, I had all the anxiety. I realised the difference between a worshiper and vigilante is 'what is enough'. One is focussed on the external and the other on the internal. At 36, I now ensure all bills are covered, no short term debt, save into my pension and ISAs, and then given myself permission to enjoy myself and live. It isn't a dress rehearsal!
After spending the day reading academic papers for work, I get thrown more by Damien, but I'm not complaining. Love how you actually use research in your videos!
Get this man to 100k. Deservers it massively, the editing is insane, the video flow is master class. I'll also leave an edit to this comment once i've done the money test, quite intrigued
This test is constructed through a lense of belief that capitalism is a natural and positive economic system rather than from an objective viewpoint. I’m my opinion it is likely to create spurious results for many people and actually be of very little value to anybody that philosophically stands outside of the current orthodoxy around economic and social systems.
Really interesting content, I agree that people can change their actions, particularly by educating themselves. I've previously fallen into the trap of buying luxury items for status. Through learning more about money management, I've started to be able to avoid the pitfalls and build a decent financial platform
Yes! Thank you for sharing this Tom. Well done on recognising an area of your relationship with money you could work on. Sounds like you are doing great now
I'm glad you got your finances back on track. Ive gone through a similar process to you. Originally I didn't have any savings but when I was made redundant I started to invest and now I have a more balanced approach.
I know this sounds stupid, but i was money avoidant until since starting DCAing into BTC and learned how and why to save/invest in early 2020. I've cleared all credit card debt and ridden the bitcoin rollercoaster. The emphasis on hard money has revolutionised my thinking about money. From avoidant to being focused on security and retention.
Thanks Damien. This was very interesting stuff. I remember having charts on my wall when I was about 13, showing how close I had got saving up my pocket money to buy something I wanted. (A golf club for £6.85 I think). I have been doing something similar, for a dozen years or so, with a spreadsheet, trying to predict when I can safely retire. So I think you are right, attitudes to handling money get embedded quite early in life.
7:54 I don't think this is the best way, I think the major thing will be to meet them where they are at and say okay money is evil for want of a better word however we live under a system that is based around money therefor to work within the system. You should at least practice good management of their money.
Same as you. When I was in my early late teens/twenties, I was definitely money status and money avoidance (fair amount of debt and no spending control - buying needless stuff). But in my thirties, my attitudes towards money have drastically changed (no debt at all, except mortgage). I would say I'm more money focused and money vigilant. I would put it down to lack of any education about handling money as a youngster.
The test questions are mostly impossible to answer. Poor people are lazy? Well, some are, some not. Rich people are greedy? Some are, some not. In what group do I fall if I answer 'It depends'?
Utter rubbish, you can't pigeon hole people..... Holy crap, that's me !. Easy to see where friends and family sit too. Great info, made me think about myself and me financial behaviour in a way I haven't before. Also interesting to think back to how I have changed as I moved through life without realising it. Great video.
Genuine question, I have been the first one, afraid of discussing it and I have noticed traits of the other 3. Do you know of anything any apps or genuine ways to help organise money in a healthy way? I have debt that I'm trying to sort, I have done some months writing budgets and trying to stick to them but it involves so much work, So much discipline. Surely there are ways. I put money aside for my kids I have some accounts I just leak money into so there is some savings but surely it's better to pay off debt. Also having broken up from a partner I don't have enough spare cash to find somewhere to live so I almost give up. I have tried financial advisors through work but it's like an they have 5 seconds and that's all to help/worry because there's little to gain from helping.
Can I suggest that the money beliefs evolve over time. I was classic prestige when I was younger. A proper (as opposed to fashion) working class background, where no was the default parent answer to "can I....". I evolved as I worked hard and developed some security. I am now definitely in the money vigilance camp, but I am older now and have a different risk appetite also. What defines you today might not define you tomorrow, so it is worth looking at yourself regularly.
I changed my habits like yourself. The realisation that spending every wage in the first 2 weeks and it still wasn’t enough. My upbringing was very much, don’t worry about money, if you want it buy it. No thought about the future. The film “99 homes” with Andrew Garfield brought the importance of financial preparation to my attention. It’s still tricky envying a newer car/ bigger house (human nature I think), but trying to be aware that keeping expenses low is the goal to enjoy experiences over material goods. Saving and overpaying the mortgage whilst not losing yourself saving every penny and becoming obsessed (did at one point), and enjoying some for the hobbies. It’s a tricky balance for sure! Interesting to see the labels, it allows the brain to rationalise what I see everyday but like you say, it’s reassuring that you’re on the right thought process and there are others that feel the same way!
This seems like the worst period. Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!
The more I watch your videos, the more I believe you are a genius! Thank you for all the incredible and valuable education, humour, and fun 😂 Big ups, DTM!
I definitely used to be in the money avoidance camp in my 20s. It’s what I was taught growing up and used to find money stressful. When things inevitably went tits I had no choice but to face my issues with money, get a grip of my finances and now, according to the test, I’m mostly money vigilant with a lot of money focus. So gotta agree that you’re not necessarily set from childhood.
Name another TH-camr who can fit a sticky alien into a finance video perfectly... I'll wait... I believed you had to put two of them back to back in an egg overnight :D
There is so much good advice in this video. It sums up everyone I know. More money doesn't reduce problems, after a point. Make over about £60k a year and you'll be set. Anything more just save.
I think forgiveness of self is really important. Ive been through the debt cycle you describe many times and i liken it to being a "money junkie/addict/convict" and like being those things its difficult to get nicked, go down amd come out reformed.
Correct nobody cares if you are wearing designer cloths or not. Truth be told the only person that’s interested is the person wearing them, it’s ridiculously stupid to believe that you are better than anyone else because you spent money on designer clothing. I get a great deal of pleasure out of meeting my savings goal every month and I can’t wait to do the same in the next month. I just wish I had started sooner. Thanks again Damien.
I am deffo in the vigilante with a hint of status for sure 🤣. But I absolutely hate feeling being ripped off also, I don’t buy anything that I can’t get the value out of fully or be able to resell the item in the future for the same or more than I paid. That way it justifies owning the item for me. I can just think of the item as “money” that can be liquidated. So idk where I am! I do also feel anxious that I’m not doing well enough (your videos have helped reassure me that actually I’m doing okay and compared to history I am living better than a king from not that long ago). Thanks Damien as always, informative and well researched!
Mentioned study from Tang & Gilbert (1995) "Money attitudes are established early in childhood and remain fairly consistent throughout one's life..". This one is the most important for me. I can see it on myself and trying to change it for my kids. Start talking about money with kids early, give them oportunity to get involved etc. Great topic Damien as always!
Love the topic and have just read Psychology of Money which covers some of this ground. Wouldn't complete that survey though with their use of the information shared and "privacy" policy...🙂. Have to say one thing I found peculiar in lockdown was that there was little to spend money on, I loved not having to go to shops, and enjoyed the bank account growing...sad huh?!!
I'm a money avoider and for the last year I've noticed I had a problem and have been trying to fix it. Still haven't managed to save any money yet but I am trying really hard. I think I need to start small and build a habit first as I'm trying to make up for lost time and save too much.
I'm really glad i discovered this channel last week, i was following afew other finance channels but yours has quickly become my favorite. As someone with well over 6 months of emergency fund saved whos been putting off buying a £30 item for the house for weeks now for fear that its 'alot of money' i know which catagory i fall into. Channels like this encourage peaple to work on improve themselves and their relationships with money little by little. Its providing valuble content to the world. keep up the good work man.
Love this feedback thank you so much! Your situation with the £30 item is so relatable i have been there myself!
I very much believe we can all improve ourselves little by little and that a healthy relationship with money is as much self improvement as going to the gym.
The branch of financial psychology you are referring to is called behavioral finance. It was my favorite class in grad school.
So interesting, I relate to you so much on your story of the suit, my first job was on £15k too and my highest monthly spending time was when I was in that job and it was on needless things like designer clothes too. It shows it was an insecurity because when you're actually in a position to afford these things you don't buy them anymore really and they lose their appeal or at least that was the case for me.
Really appreciate you introducing this topic to us while being transparent and honest about your own journey… it makes the content that much more relatable.
Thank you mate i really appreciate this! At the end of the day my journey has made me who i am financially especially the mess ups. I hate that so many pretend to be perfect online when I think the truth is far more compelling.
Fascinating video as always. I definitely agree with your point that money scripts can change. I think I would have classed myself as an avoider in my early 20s, largely due to a lack of understanding and education. Fortunately I discovered channels like yours and have since educated myself. Having just taken then test I am now strongly money vigilant (and a bit money focused too)
Subscribed! amazing video, so insightful. I tend to be a 50/50 split between money vigilance and money focus. The story about the £1k suit and £15k salary sounds how I used to be with money many years ago, you clearly have moved on since then which is fantastic. It's a continuous path of learning for sure. Thanks!
Thank you! I am glad you enjoyed the video, it is indeed a continuous path of learning and that is why I thought share the failings instead of sitting here pretending I am perfect
Damo, can you do a video about switching funds. Not so much the process, that's easy to do (Vanguard here), but more the implications of when and the effects its has on the funds themselves. Say, if you partially switch a percentage or small amounts to switching the whole lot in one go. Obviously switching when its in profit would be a start. I'm interested in the ramifications and have found little on this subject, so hoping you might give it a go! Keep up the fantastic & entertaining videos
Great video (as always) Damien. The final section where you discuss your scripts is very relatable as your journey is similar to mine. You're completely right that we aren't fixed to a script from a young age.
This should hopefully give plenty of people food for thought and help understand their relationship with money before it becomes too negative!
Glad you thought the video was useful and it is reassuring for me to hear that others have followed a similar path to mine. I hope you are doing well now!
That joke about the alien made me laugh 😂, I remember kids at school saying the same thing and then begging my mum to buy one so I could try it hahaha
Every day's a school day! Fascinating stuff Damo, will try the test later and also share the video with my children who seem to have very different attitudes to money. Will need to go through some of the papers you've cited as I guess there will be significant Nature vs Nuture debate around this aspect of people's behaviour, as there is with everything else. Great content as always, good luck getting to 100K subs.
Really interesting. I think a lot of financial “common sense” isn’t so common anymore because we don’t explicitly teach it to kids and they’re surrounded by bad examples. Basically money only brings you happiness up to a point, live within your means by budgeting accordingly, always save as much as you can, invest a proportion for your future, there’s no such thing as quick money, spread your risks, work hard to increase your earnings over time.
Great video. My parents were a mess financially and my dad ended up dying. I had to pay of 74k euros of debt for my mom. Took me 4 years. Now I'm finally done and I'm the definition of money vigilant. I make good money but I refuse to get a car and don't like buying new clothes. I call my mom regularly to ensure she's not using any creditcards and I refuse to buy things on credit. Maybe I should ease up a bit.
Another beautiful video, and a flawless delivery!
Thanks for the great insights
Great content, love the psychological insight on your channel. I used to be money avoidant most of my life, and Im a psychologist, but since I started working in finance Ive completely shifted into money worship....and since I got signed off work due to chronic illness Ive shifted into money vigilance. So I totally agree with it not being a stable trait. Very few traits are. Especially behaviours that are closely linked to circumstances and affected by conditioning. Maybe you're familiar with my colleague/mentor Adrian Furnham's work? Absolutely agree with the importance of this topic
I had loads, but it imprisoned me. Now I have enough to be free, which is enough for me. I’m 54. Great content fella.👍
Your story sounds fascinating and I bet we could all learn a-lot from what your are discussing here! Well done for finding balance.
That Sean Paul line was super smooth 😎
Thank you!
For me I think all aspects of life need a balance. Money has to be managed, spent, made, invested, borrowed (credit, not wise to always use your own cash).
Fantastic video Damien. I'm inclined to agree with you that a person's attitude towards money can change and evolve over time, but I wonder if there is any research on how likely or often that can happen. I suspect that a significant number of people aren't able to look at their own experiences objectively, leading to belief perseverance. My 2 big criticisms of education today is that schools don't teach basic financial management or critical thinking patterns - people aren't equipped with the right tools to begin with to break out of any negative scripts we form as kids. We're just left to work these out for ourselves.
Production quality is going up steadily in your work mate. Thanks for the great work. 🚀🚀
Thank you!
@@DamienTalksMoney actually thank YOU. You're one of the two people who talk about money and investment whose work i find, without a doubt extremely useful. Everyone else seem to be going out and parroting the same stuff. Yours is truly debate opening on the other hand. That is what we need. Not another person saying the same with different words. 🙏
@@zero-lpds Wonderful feedback. So glad you think the content prompts meaningful debate, really appreciate you taking the time to leave this comment it has made my morning!.
Was literally looking at your channels homepage about 20 mins before you posted this thinking "12 days, the lazy sod" ;)
Moar ser! Blz MOAR!!!!
Fuck.... "giving it a name, can change everything"
*sighs*
Suppose I better get ADHD checked then
HAHAH! Sorry i wont let it be 12 days again..
Thank you for checking in on me!
Cracking samples and musical references AND sound financial content as always ❤
Really good video everything he is saying is true any millionaire l have worked for never drive a Ferrari or Porsche they love saving money buying things that make them money also they will recycle everything only the old school people think this way something that is a dying, Breed, it’s the right way. The thing is everyone’s a millionaire or they think they are because they buy a bmw when it brakes down they can’t fix it. Is that a millionaire? Great video as always remember the one thing l have learned in life nothing is what it seems never judge a book by it’s cover be the true you the one that’s happy with life.
There is no way I would provide financial information on line to a web site that required my email address. This would open me up to scams of all kinds.
Regardless the financial situation one finds themselves in, you’re always damned by someone, or yourself, no matter what you think/say/do or don’t think/say/do.
Great video, thanks for bringing ideas like this to our attention!
I need to now do some research about what are possible triggers for the scripts developing. It must be quite complex I imagine. My parents are both leaning into the money avoidant group, they worked hard and have decent standard of living, but they never saved up seriously (nor took any loans, just not willing to deal with any financial stuff) I turned out quite money vigilant, but what baffles me is that my brother is pathologically money status oriented. We grew up in the same household but have such a different attitude towadrs money. I think I was concerned about my parents being oblivious to the lack of security, while my brother just learnt that living paycheck to paycheck and on top of that inflate the image of wealth is a good idea. I wonder how early kids can pick up on stuff like that.
Brilliant video big man!
I’m reading a George Soros’ book at the moment. A good video would be about his theory of reflexivity. Although I’m reading a different book, he has stated that the Alchemy of finance is the best book for this, in case you want to read it.
Very interesting content! With money you can invest in whatever is important for oneself. In my opinion, nothing is more valuable than lifetime, so what better investment might be there then a way to either save money systematically or to generate passive income (eg via dividend stocks) so you need less lifetime to work for the money you need? The long term goal is happiness, of course. But the best things in life cannot be bought with money but need time and devotion - for example a happy and lasting relationship.
"Facking Hell Becky" 🤣Man.. your sense of humour is right in line with mine. Love it. Also feel like we must be of similar age as i also had one of those aliens as a kid and for some mad reason believed it would reproduce. Man the stuff we believe as kids!
On the financial stuff, love that you've shared part of your own story here. Mine is historically a bit dire, grew up on a council estate, mum was the sole breadwinner, dad was a lazy tw@, remember constantly struggling day to day to keep the heating and electric going let alone anything else. Fast forward to an adult and my first decent paid job i spent like an idiot, got myself in a lot of debt, ended up having to take a Scottish Trust Deed to clear it, took 5 years, got out of the financial hole i dug myself, got a better job and once the remainder of some debt is paid off next year, I should be able to invest just under 50% of my wages each month. I learnt the hard way, I'm 35 soon and it wasn't until... 2020 that i really started taking control of my financial education.
Hence why I'm here and enjoy these videos. About to take that test now.. cheers for sharing & the great content as always.
Just don't be too hard on yourself for how you got into a mess at the end of the day you was raised in an enviroment where those around you didn't have good money habits.. Well done for getting yourself straight now and can't wait to hear how you get on with investing
Coming from a poor background and building wealth by hard work and some risk taking I defo have a problem with money in that I'm scared of losing it to the government who did nothing to help me build that wealth but are constantly clawing it back with taxes and inflation.
I'm scared to spend it on frivolous things too because growing up poor makes me question every purchase I make.
So yes I've definitely been following a script based on my own experiences.
Thank you for sharing this. Great that you can recognise this in yourself now. I have been scared to spend on myself for my own reasons and recently i have got over that by spending money on experiences, recently went climbing as an example.. all the science suggests experiences are a route to happiness over stuff. So maybe consider that as a way to get started with a bit more spending on yourself
@@DamienTalksMoney experiences are priceless, I always wanted to do a sky dive, time to make that happen I think as a start.
@@DamienTalksMoney all my good memories are of doing stuff like climbing , Kayaking , cycling, motor biking, skiing, hiking etc etc.
Looking back over the decades those were all money well spent to create happiness and good memories.
Moving to London with nothing changed my view on money… it was simple, make more to move out of a bedsit in a dangerous area or make less and live in deprivation and poverty for the rest of my life. I chose the former.
Thanks as ever for your insights, Damo - legend, son!
Big love from London, my G 🙏🏻❤🇬🇧
Edit: 11:37 dude... 🔥
...and I remember those damn Aliens! We were always told you need to stick 2 of them back-to-back to make them have babies 😂
I wasn't allowed one, Mum told me they were a waste of money lol
Your mum was spot on about the aliens! haha
Really insightful video 👍
Attitude towards money should be that knowing, money has no real value, and the state can print money whenever they want, which definitely helps inflation. Institutions likes the IMF control what the central banks can do.
Appreciate the Sean Paul at the end!!
Glad someone did!
Love the hip hop references
Hi Damien, so glad I discovered your channel. I'm currently invested in index funds and actively managed funds. Should I buy individual shares instead of funds? is it cheaper? Is it better in the long run? I like the idea of not having to constantly watch my portfolio but would also consider anything that would increase my net worth in the long term. Cheers.
Funds
Tom Po with some wisdom here.
@@tom7676 thanks mate, appreciate a second opinion!
Jodie and Rebecca! 😂
Great vid as always, pissed myself laughing at the alien 👽 scene at the end. 😂
For all the guys out there, money brings women, that's most of the focus 😂
Talk about money:
“I saw one of those old £5 notes the other day”
If you know where this is from you’re a legend 👌🙈
How do you spell Arrods? with a capital A.... Love a bit of only fools and horses.
@@DamienTalksMoney cushy! 👌👌
500 more
How this channel doesn’t yet have 100k subs is criminal. The quality of videos is second to none
Thank you so much!
100k on to a million. Onwards and upwards. Be really nice to know the challenges you have faced to get to where you are Damien. No doubt there has been an element of luck and a lot to do with your creativity and how likable you are.
@@bernardo.daSilva If you think it is worth it i will make a video. i am sure it wont get loads of views but i think there is some really important lessons that can be discussed others can apply to their personal development.
@@DamienTalksMoney second channel maybe? With a lot of cobweb. You're so creative I'm sure we'll all have a lot to learn
Exactly! He's soooo creative!
I lost over $50K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said.
I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market,
I'm really grateful I find one source to recover my money, at least $9k profits weekly. Thanks so much Mrs Cynthia M. Levi
Mrs Cynthia changed my life because of the huge profits I got from investing with her.
please I’m new at this, how can I reach your broker?
investwithMLevi💯
I am definitely contacting her, thank you
ive watched many hundreds of hours of financial education content and i can confidently say that you are providing serious additional value in this space. this is good stuff
I was a financial mess.
I spent every penny I had at the start of the month.
I ran up credit card debt.
Got a mortgage with an endowment that wouldn't cover the loan, and never increased it.
I ignored letters and had anxiety about confronting my issues.
I lost my job in my mid 40s, but got another really quickly, but that was the catalyst to get serious about my finances.
In 5 years I cleared £22k of credit card debt.
The endowment did well, and I paid the mortgage off by adding some savings to it.
I hope to retire at 60 with 60%of my wage plus wife's state pension which I'm buying extra years for.
I've been very fortunate, but can't help thinking, where would I be if it hadn't taken four and a half decades before getting my shit together.
And yes. I grew up in a house almost in poverty. Some Christmases I got fruit and chocolate, but also lots of love.
The "Money Avoidance" chapter of this video is the most important part, I think. I feel like this kind of stuff should be taught in schools, so no-one enters adulthood without a decent understanding of finances.
Have to agree about the teaching, link this with the pension topic in previous video and I wish I had been presented with it at an early age. Luckily I guess I am classed as a vigilant and fortunately comfortable in retirement, unlike many unfortunately.
I will say it again …you would be a massive asset for a school program helping kids understand money and the system that wants to keep us down.
Totally agree. My eldest daughter's school ran a course (albeit a kind of add-on to fill the post maths GCSE void) on personal finance. At least it's a start.
One problem with the comments.....Here is the bitter truth, the government do not want you to be good with money. They make too much money from people spending and going into debt. They will never ever teach finance in school. Horrible to think!
It should start earlier, with small steps from parents. Mentioned study from Tang & Gilbert (1995) "Money attitudes are established early in childhood and remain fairly consistent throughout one's life.."
Hi Damien, I am currently in my first year at Durham studying maths! Awesome to know that my favourite content creator went to the same uni as me. You’ve taught me so much that unfortunately just doesn’t get taught in schools and at a young age, having only just left school/college it’s a real shame that still in 2022 I left school having no real knowledge of finances in the outside world. I know I am very lucky to have found your channel and be well educated in finances at my age and so I make sure to share your channel to my friends.
Well done for getting into Durham! Maths is no joke and such a great choice for a degree i am sure you will do well. Honestly Todd as i discuss in this, my time in education didn't really prepare me in a financial sense for the wider world at all i learn through failure essentially.. I hope you don't need to learn in the ways i did and all i can say is tuck away a little each month and stay consistent and you will do amazing! Next time you are in Castle bar have a Smenergy for me!
Damo
I’m teaching my kids in the car on the way to Sunday swimming lessons. Covered inflation and mortgages so far. They are 10 & 7! Should be taught in schools
Really appreciate your holistic approach towards finance. You got something special here, keep it up!
Sign up to The Daily Upside on bit.ly/3XAtMNu It is completely free and the newsletter is incredible.
Signed up to the upside after months of intending to! Good man.
@@SmigtySmig Hope you enjoy it Mark!
I just did the test. It looks like I am money vigilance but also money focus. To be honest I am both. But watching your channel for a long time and a few videos more than once makes it easier to understand this financial (not gibberish anymore) noise. It was difficult at the beginning but with your help, Damien is much easier. Thank you again.
Great video Damien! Your personal journey sounds similar to my own, being the same age as well. Took me until I was about 23 to realise that having credit card debt and constantly owing family and friends was no fun. Something clicked and I have transformed into a money conscious, saving, investing, workaholic type creature. Although now fast approaching 35 I’m realising that nothing is more valuable than time. So my next transition will be to create a more healthy relationship with money and enjoy non financial related things more too. Maybe by the time we are retired we will have found the perfect financial script to live by! 😆👍
Hey mate. When I was younger I was terrified of burglars. So much so my dad, who had an old jaguar car at the time, told me that badgers had stolen the famous leaping cat badge from the front of his car during the night.
I was way into my 20's about to recount this story about badgers to my workmates before it dawned on me that he'd lied...
-SD
HAHA! incredible mate, well at least you didn't tell the story then realise.. But what a beautiful example of how the inputs as children can stay with us long past when they probably should
@@DamienTalksMoney true, I'm amazed it never dawned on me though that badger sets weren't full of car badges though 😅
Could it not have been a slang term for people stealing badges?
It started with VW badges. A trend due to the Beastie Boys wearing them.
I've lived like I have nothing my whole life - so that I don't have to live with nothing. Very strange, but working out ok.
Everytime i see a ferrari or Lambo I just think mid life crisis lol. I actually don't give a shit about your car or the stuff you are wearing, doesn't impress me. I'd say I'm set on having money and more of it but also stick in the cycle of, I need to buy nice things (meals, sometimes clothes but always latest tech)
Yet another excellent video. Thoughtful, relevant and candid (as well as relatable and amusing at times) As an older (Vigilant) investor, I really do hope your channel continues to grow, especially with the youngsters who I'm certain can really appreciate your approach and content. Kudos Damien.
Very similar to your good self Damo. Graduated in 2008 as a money worshiper. It's no surprise as we are sold the dream, go to uni, get in a load of debt, so you can get a great job and be rich.
I then spent time at the large accounting firms and some FTSE companies and realised it's a gilded cage, where enough is never enough.
I also grew up with very little money at home. Typical 80/90s working class family, single average wage income from father and stay-at-home mum.
So when I transitioned (how 2023...) to money vigilante, I had all the anxiety.
I realised the difference between a worshiper and vigilante is 'what is enough'. One is focussed on the external and the other on the internal.
At 36, I now ensure all bills are covered, no short term debt, save into my pension and ISAs, and then given myself permission to enjoy myself and live. It isn't a dress rehearsal!
Here in the UK this channel should be on the A-Level Economics curriculum.
After spending the day reading academic papers for work, I get thrown more by Damien, but I'm not complaining. Love how you actually use research in your videos!
Mate the fact you work all day then watch me is enough for me to feel sorry for you... let alone the papers!!
Get this man to 100k. Deservers it massively, the editing is insane, the video flow is master class.
I'll also leave an edit to this comment once i've done the money test, quite intrigued
My guy! Thank you. Honestly you are not far behind me. i always knew you would kill it
This test is constructed through a lense of belief that capitalism is a natural and positive economic system rather than from an objective viewpoint. I’m my opinion it is likely to create spurious results for many people and actually be of very little value to anybody that philosophically stands outside of the current orthodoxy around economic and social systems.
Another great video 👍😁 very interesting
I'm high on money vigilant
Really interesting content, I agree that people can change their actions, particularly by educating themselves. I've previously fallen into the trap of buying luxury items for status. Through learning more about money management, I've started to be able to avoid the pitfalls and build a decent financial platform
Yes! Thank you for sharing this Tom. Well done on recognising an area of your relationship with money you could work on. Sounds like you are doing great now
Balance is what works for me, I don't dream big, have small goals to begin with, and grow them just bigger and bigger as time goes by.
Loving the content this year. It's fresh, different and honest. Thanks for the time you take to make them.
Really appreciate this feedback! Thank you
I'm glad you got your finances back on track. Ive gone through a similar process to you. Originally I didn't have any savings but when I was made redundant I started to invest and now I have a more balanced approach.
Dude, what if the goo you found on your chin was the little alien baby you've been waiting for?
Nooooooo 🤣
I know this sounds stupid, but i was money avoidant until since starting DCAing into BTC and learned how and why to save/invest in early 2020. I've cleared all credit card debt and ridden the bitcoin rollercoaster. The emphasis on hard money has revolutionised my thinking about money. From avoidant to being focused on security and retention.
Thanks Damien. This was very interesting stuff. I remember having charts on my wall when I was about 13, showing how close I had got saving up my pocket money to buy something I wanted. (A golf club for £6.85 I think). I have been doing something similar, for a dozen years or so, with a spreadsheet, trying to predict when I can safely retire. So I think you are right, attitudes to handling money get embedded quite early in life.
Damo oh Damo! Absolutely nailed this one. Thanks for sharing. And that ending. 🤣💯💯💯💯💯💯💯💯
7:54 I don't think this is the best way, I think the major thing will be to meet them where they are at and say okay money is evil for want of a better word however we live under a system that is based around money therefor to work within the system. You should at least practice good management of their money.
Same as you. When I was in my early late teens/twenties, I was definitely money status and money avoidance (fair amount of debt and no spending control - buying needless stuff). But in my thirties, my attitudes towards money have drastically changed (no debt at all, except mortgage). I would say I'm more money focused and money vigilant. I would put it down to lack of any education about handling money as a youngster.
The test questions are mostly impossible to answer. Poor people are lazy? Well, some are, some not. Rich people are greedy? Some are, some not. In what group do I fall if I answer 'It depends'?
Utter rubbish, you can't pigeon hole people..... Holy crap, that's me !.
Easy to see where friends and family sit too.
Great info, made me think about myself and me financial behaviour in a way I haven't before.
Also interesting to think back to how I have changed as I moved through life without realising it.
Great video.
The biggie comment took me out lol
My attitude towards money has definitely changed throughout my life. Im very happy to see some footage of cobweb. 👍
The Jodie and Rebecca gag at the end was quality Damo. Had me belly laughing. Good video buddy.
Genuine question, I have been the first one, afraid of discussing it and I have noticed traits of the other 3.
Do you know of anything any apps or genuine ways to help organise money in a healthy way?
I have debt that I'm trying to sort, I have done some months writing budgets and trying to stick to them but it involves so much work, So much discipline. Surely there are ways. I put money aside for my kids I have some accounts I just leak money into so there is some savings but surely it's better to pay off debt.
Also having broken up from a partner I don't have enough spare cash to find somewhere to live so I almost give up. I have tried financial advisors through work but it's like an they have 5 seconds and that's all to help/worry because there's little to gain from helping.
Can I suggest that the money beliefs evolve over time. I was classic prestige when I was younger. A proper (as opposed to fashion) working class background, where no was the default parent answer to "can I....". I evolved as I worked hard and developed some security. I am now definitely in the money vigilance camp, but I am older now and have a different risk appetite also. What defines you today might not define you tomorrow, so it is worth looking at yourself regularly.
Nearly 100k subs. Yeah Boi!!! Well done. BTW C.R.E.A.M is a great album!!
I changed my habits like yourself. The realisation that spending every wage in the first 2 weeks and it still wasn’t enough. My upbringing was very much, don’t worry about money, if you want it buy it. No thought about the future. The film “99 homes” with Andrew Garfield brought the importance of financial preparation to my attention.
It’s still tricky envying a newer car/ bigger house (human nature I think), but trying to be aware that keeping expenses low is the goal to enjoy experiences over material goods.
Saving and overpaying the mortgage whilst not losing yourself saving every penny and becoming obsessed (did at one point), and enjoying some for the hobbies.
It’s a tricky balance for sure!
Interesting to see the labels, it allows the brain to rationalise what I see everyday but like you say, it’s reassuring that you’re on the right thought process and there are others that feel the same way!
This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!
The more I watch your videos, the more I believe you are a genius! Thank you for all the incredible and valuable education, humour, and fun 😂 Big ups, DTM!
Hey Damien, great video quality! Can I ask what camera you are using please? tks
I definitely used to be in the money avoidance camp in my 20s. It’s what I was taught growing up and used to find money stressful. When things inevitably went tits I had no choice but to face my issues with money, get a grip of my finances and now, according to the test, I’m mostly money vigilant with a lot of money focus. So gotta agree that you’re not necessarily set from childhood.
Wait Sean Paul isn't P Diddy's son?
🤣🤣🤣
Jodie and Rebecca 😂
Name another TH-camr who can fit a sticky alien into a finance video perfectly... I'll wait...
I believed you had to put two of them back to back in an egg overnight :D
There is so much good advice in this video. It sums up everyone I know.
More money doesn't reduce problems, after a point. Make over about £60k a year and you'll be set. Anything more just save.
After watching this I now know exactly which category I come under! Thankyou for the insight …fascinating stuff!
I think forgiveness of self is really important. Ive been through the debt cycle you describe many times and i liken it to being a "money junkie/addict/convict" and like being those things its difficult to get nicked, go down amd come out reformed.
Correct nobody cares if you are wearing designer cloths or not. Truth be told the only person that’s interested is the person wearing them, it’s ridiculously stupid to believe that you are better than anyone else because you spent money on designer clothing. I get a great deal of pleasure out of meeting my savings goal every month and I can’t wait to do the same in the next month. I just wish I had started sooner. Thanks again Damien.
Brilliant vid. I'm coming back for a rewatch. My own history with money and actions for money are all over the place. Cheers
I am deffo in the vigilante with a hint of status for sure 🤣. But I absolutely hate feeling being ripped off also, I don’t buy anything that I can’t get the value out of fully or be able to resell the item in the future for the same or more than I paid. That way it justifies owning the item for me. I can just think of the item as “money” that can be liquidated. So idk where I am!
I do also feel anxious that I’m not doing well enough (your videos have helped reassure me that actually I’m doing okay and compared to history I am living better than a king from not that long ago).
Thanks Damien as always, informative and well researched!
Mentioned study from Tang & Gilbert (1995) "Money attitudes are established early in childhood and remain fairly consistent throughout one's life..". This one is the most important for me. I can see it on myself and trying to change it for my kids. Start talking about money with kids early, give them oportunity to get involved etc.
Great topic Damien as always!
Yes! The data suggests talking to kids about money as early as possible is so good for their development, don’t hide money from them
You put a lot of work in making these videos, thank you for the service provided
Love the topic and have just read Psychology of Money which covers some of this ground. Wouldn't complete that survey though with their use of the information shared and "privacy" policy...🙂. Have to say one thing I found peculiar in lockdown was that there was little to spend money on, I loved not having to go to shops, and enjoyed the bank account growing...sad huh?!!
I'm a money avoider and for the last year I've noticed I had a problem and have been trying to fix it. Still haven't managed to save any money yet but I am trying really hard. I think I need to start small and build a habit first as I'm trying to make up for lost time and save too much.