7 of the WORST Money Habits of All Time | 100% Preventable
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- There is a HUGE distinction between the money habits that make you rich and the money habits that keep you poor. This video, 7 of the Worst Money Habits of All Time, will highlight bad things people do with their money that are 100% correctible no matter what you income.
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For years I have been putting all (and I mean ALL) my purchases on a cash rewards credit card. I pay off the full balance every month. Over time, I have earned over 5,000 dollars in rewards and have not paid even one penny in interest. It takes some discipline; but, for me it is free money.
I never carry a CC balance. Last year I received $1700+ cash back on my Sam's card. Will be similar this year. Close to 5% back and extra promotions adds up for everything. I know they lose money on me big time. It pays for some nice vacations for the family.
Same.
I'm retired & poor, but live within my means & have a few hundred dollars left over at the end of each month. I use a credit card, but never carry a balance. Ironically, my credit score is now over 800, higher than it's ever been. For me it's been the low cost of my housing that's allowed me to live this way. Plus I do have money on hand to pay for an emergency without going into debt. So it can be done.
Hhmm....doesn't sound like you're poor, just smart.
@@morgan97475 $1100/month is poor here in WI. I'm on food stamps, Medicaid & Medicare (I get all the benefits I deserve). But I hope I'm smart too.
In Wisconsin I get about 9 little bit over a month I get no other benefits and I'm a widower for almost 19 years
I had heart failure a couple years ago almost died
@@jimjotka2187 The secret to getting along well be poor & retired is to go after all the money & benefits you are entitled to get, to jump through the hoops to get them because the wealthy and corporations never have any problem doing that.
I squandered alot of money in my youth. If I had invested that wasted money even conservatively, I'd be a millionaire today.
I remember once watching a talk by Warren Buffet. He said the most important financial decision he made was in choosing a partner for life. I could not agree more. Being in a marriage with the wrong person is by far, the costliest decision a person could make. Being in a marriage with someone does not share or listen to your money management strategies can wipe you out financially. My wife definitely cost me into the seven figures and left me nearly broke and with two daughters to raise on my own. The good news is that without her, I was able to restore my finances, support my children, put them through college, and save for retirement.
Kudos to you. I also think that the marriage decisions are taken too lightly by the courts you are in business together when married and the same penalties should apply as in business. If you can prove the other partner was embezzling funds while married they should face the same consequences as a business partner would. On the other hand if it is used maliciously there should be penalties as well.
@@everettcalhoun8197 Unfortunately, when you marry, your spouse is free to take everything and there really is nothing you can do about it. If you decided to fight it out in court, the attorneys will take everything. There basically is no way to resolve anything in family court. These cases can be dragged out indefinitely. My ex spent 9 years filing pointless orders to show cause. Most of the time, neither she or her attorney would show up for court.
You are absolutely spot on regarding your marriage analysis. Fortunately, for me anyway, my wife is the good one with money.
@@richardt1792 - I have a friend going through a divorce now. His wife and her lawyers are doing the exact same thing. They keep submitting the exact same requests that keep getting denied by the courts. This has drug out the divorce for nearly 2 years. What I don't understand is why the judge doesn't somehow sanction the wife and her lawyers, though the judge does have a reputation for be notoriously anti-man in her divorce rulings.
Great point. The wrong partner will drag you down faster than an anchor tied around your neck.
My mother hoarded money and worked into her 80s. Admirable, but she missed traveling to visit her grandchildren, a loss not just for her, but for them.
My husband is like your mom. I can't say that he "hoards" money as he pays no attention to it. He lives to work and lets me handle the finances. I've learned to just go on my own to see the grandchildren but he and the children are missing out IMO.
That's really unfortunate. I am quite frugal myself but my Mother especially always reminds me that I should spend time/money on recreation as you cannot get life back regardless of how much money you have. She's always telling me to go travel since it's hard to get around when you get older (shes in her 80's now).
When my wife retired I realized that we couldn't afford debt. A great awakening!
You should have a million subscribers because this is the best personal finance channel on TH-cam. Thank you for all your efforts to create quality videos.
Thanks Adrian! I appreciate the kind words.
No kidding. This guy is so smooth in his presentation it lowers my blood pressure by ten points when I watch his down to earth videos.
Truth!❤ Best advice and you cover as much good with the bad! Really makes us think of all aspects of what we are looking to achieve! Thank you for all you do to help!
For those who can't seem to pay their bills on time, automatic electronic payments can be convenient. That is, so long as the money is in the account to cover the bill.
I have never cared much what others thought. Even after becoming a millionaire I still sway to my own tune.
I own an old 2003 Chevy 1500 truck with close to 500k miles. Instead of spending an extra $50k on a vehicle in that time I bought a modest fixer upper "near the beach house" with cash and remodeled it over 2 years with cash. We love it.
On the flip side I also invested in my 30th property last month with all cash. Should make for a great retirement.
Those of us that have been somewhat frugal most of our lives and our still living well within our budget we can now purchase things that would have been out of reach during our younger days. We always paid off credit cards and never bought anything we couldn’t afford. Small sacrifices lead to big gains later on.
The thing is, now that I can afford the things I couldn't afford as a young person, I don't want them now.
I'm kind of the hoarding guy. Didn't have much money growing up so always want to have a healthy nest egg. I'm very happy with what we have, and I don't buy what I don't need. The bottom line is I have a problem spending money at times for things I would enjoy(and I have more then enough). I have married children and have no problem spending money on them. They all make a good living, but that's my enjoyment. I also want to make sure that if something happens to me, my wife will not be burdened with cash flow. Oh well! I am getting a little better. Thanks Schmidt!
As always, absolutely fantastic informative information. Needs to be taught at every high school or college!
Thank you!
High school or College is too late. 95% of one's personality is formed in the first 5 years.
Mr. Schmidt, you are not old enough to be my dad, but you are the kind of dad we all needed when it comes to financial education.
I use a no annual fee credit card to purchase everything I need each month including some bills. Why? because I get mileage points and haven't paid for a plane ticket in perhaps 18 years. Pay the credit card balance in full every month. Beats carrying cash. I miss not getting a pocket of change because I save coins. Don't get much in the way of change any more. I formed this habit when my husband died 22 years ago and left me with $50,000 in consumer credit debt. Got a good job, canceled all his credit cards, paid off the debt, and decided to make a credit card work for me, not against me. Am still doing it.
We’ll done J!
Thanks Geoff! Another excellent video. I am learning so much from you!
I love that he allowed for people who pay their bills with credit cards because "you are that kind of person." I am one of those people. I track my bills and payments using software (I used to keep a manual ledger) and in my mind, it makes absolutely no difference if I pay bills with a credit card or a debit card. It gets expensed the same either way. I get a little bit of money from cash-back programs but the more important reason I use credit cards is that fraud protection is a bit more robust. I also listen to Dave Ramsey and he cuts us no slack. He thinks if anyone uses a credit card, they are wrong. 😂 But yeah, most people would be better off avoiding credit cards.
The credit card is the single best means to protect any purchase; the debit card is a single worst means to protect any purchase. I love and respect Dave Ramsey, and I completely understand that he can not justify the credit card purchase because he is fighting the psychology behind poor credit card habits. If one on one, he would tell you what I just said. When you are smart enough and have a robust working system in place, you need to use a credit card, points based or not. This keeps all of your purchases separated from your real, actual, cash, money. After your wise purchasing is reviewed/returned/disputed, then and only then, when YOU are ready, do YOU initiate a "bulk" payment to fully pay off the credit card, each and every time.
I completely agree with you and do the same. If I have the option to pay with my credit card, I'll do it. I pay off the entire balance at the end of each month. For me, the benefit is control over my cash, easily keeping track of my expenditures, and points (or cash back).
Jerry, I agree with you...plus I get flight miles!
@@michaelkrawczyk6715 It's good to know that I am not alone! Thank you for stating it.
I have a great aversion to paying CC interest! It’s probably 25 years since paying a dime on interest. But, like you and others, my balance is paid in full every month while I realize the benefits of CC security and cash-back or travel points. My monthly recurring bills (utilities, insurance, etc.) are tied to the CC, and those amounts are immediately deducted in my ledger as if I wrote that check. Same with outside purchases (gas, dining, hotels), deducted the same day. When the bill comes, reconciling the line items is a breeze and the check or bank on line payment is made. By doing this, I’m seeing the true balance in my checkbook and have the proof the bill is paid. Extra benefit, very high credit score. The late, great Larry Burkett (1939-2003) taught me this on his “Money Matters” Christian radio show. I am not able to listen to Dave Ramsey, he uses Larry’s material and never cites him.
Great Video! I watch all of yours, some multiple times, and they give me a lot to think about.
For money mistakes there also is overconfidence. Thinking that your great financial situation will last forever. It takes only one dumb mistake and that great financial situation can evaporate quickly. If you are about to make a big decision that could have major financial impact, stop and think it over. And seek some advice.
Excellent point C.D.
All great points even more important when retired. Never lived to keep up with the Jones' s. Never had to show off or act other than myself. I had a solid upbringing and great parents that instilled in us great values like working for something and delayed gratification.
It makes sense...what you are saying. However, according to Quantum Physics (Law of Attraction), we attract what we think about most..Positive or Negative things. Hence, if we fear spending bcos we don't want to end up broke, we WILL be "Broke" bcos we attracted it.
The more you Give away...the more you attract back.
Thanks for this information
Good video😊 Retiring durring covid has kept me from adjusting my spending. Still spending to little waiting for the world to open up. This year should be my first major trip but still a little worried for hitting the right balance on spending.
Common sense advice, as always. Thanks, Geoff! Appreciate you!
Thanks Tina!
Great video and great information as usual! I'm in business and financially retired but I love your videos that give insight to the pitfalls that can hit the retired. I would rather learn them now...before I get there.
Thanks for the kind words
Great points! I will say using cash for everything if you can't control your spending has to be done. We do use our credit cards for paying some of our bills but we are aware of our spending. Cars need gas, cell phone bills need to be paid and groceries need to be bought ... all go on credit card. But we started out years ago on the cash in the envelope system to get into the budget mindset as we lived paycheck to paycheck. Yes, as said saving a little every month helps with other things as that saved money grows. Once you start saving it can snowball into a great amount.
Thanks for the video!
This is a great video. I have issues saving money. Money is my weakness, and I am working on it. I need to learn to be good with money, and I am working on self-control.
Work in progress!
You The Man!
Such good information! Even the basics can get out of hand and cause financial hardship.
Very true
Great video!
Great video. Thank you.
#5...I stopped writing checks for bills three years ago when checks never arrived or ended up somewhere else. I never use a debit card because it took me the better part of a work week to get $160 back in my account after some fraud while grocery shopping. So now all bills are pretty much paid by my 1.5% cash back credit card. Seamless. As soon as the charge goes from pending to a true charge it is paid that day. Best part is at the end of December I have a small wad to use as I please. If one can't handle credit cards then stay away from this.
I do the same. I work for a bank and see fraud with debit cards all the time. Would not have one.
Same here, I have never used my debit card, but once someone at Walmart used my account # and I had to go to the bank to notify them of the fraud.
Love my reward credit card. I get between $25-34 every other month of free money, all from using my CC for groceries and utility bills.
For most of my bills, I use my bank's Bill Pay service.
I had a similar issue with an overpayment to my ISP a few years ago. Changed banks and ended up having the internet bill auto pay from both debit cards in the same month. The ISP said it will take literally twice as long to get my refund because it drew from a debit card & not a credit card. After that cleared up, I switched my ISP bill to credit card payments only.
Admittedly, every other bill resolved from e-check or debit card. I've learned I need that "sting" to control discretionary spending.
Agreed. You don't have the same legal footing with a debit card. I just refuse one and ask for an ATM card. When my bank merged a few years ago they put up a stink and said it would take 4 weeks. I said fine. Everything is now paid via credit card. I have three cards, one for the internet, one for restaurants, and one for any other purchase. The restaurant card gets flagged every other year for fraud by the bank and they issue me a new number.
Great advice!
You are the friend that everyone needs and hates to have in the same breath, great video.
Thanks Adam!
I'll give you credit on this one this is one of your better videos
Thank you.
you bet.
I love “Class.”! Found it when it was a new book and probably read it 12 times because it is entertaining!
OMG!..."Class" by Paul Fussel! The best! It's written in such a comical style that you'll laugh through the whole thing, sort of, because there is so much truth.
The best! Thanks Kendall.
Thx
Great
For #5, I am that kind of person. I always watch what I spend and every day go over my credit card usage to make sure I don't get too out of hand. I also only use two credit cards. I mainly use Amex because it requires full payment at the end of the month and a VISA card, should the Amex not be accepted (very infrequently now-a-days).
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
I'd add is just say no to credit cards that charge an annual fee. It's not a status symbol and a no fee card gives the same service service.
Also just say no to paying bank fees. If you can't carry the minimum balance to be fee free look into a no fee on line bank account.
We’ll done!
I haven't had to open a new card for years but I heard that trying to get a credit card without an annual fee is almost impossible now?? I have a child close to 18 and it made me wonder if they're going to actually be able to get a no-fee credit card...except maybe a store card?? I hope I'm wrong!
I just checked out the book you referenced. My wife always tells friends and family who make large and unnecessary purchases that therapy is cheaper. I’m an atypical credit card user. I’m that kind of person.
Thanks coach Geoff!
Folks find something to flip. So easy and fun and profitable.
I like your videos. I don’t agree with the not paying your bills with a CC though. Pay off every month, automatic set and simple ergo no worry about being late. Plus you get the ‘points’
The psychology of spending always interests me. I use my debit card for every purchase because it makes me more conservative in my spending. Once I withdraw cash at an ATM that money is, in my mind, already “gone” from my account balance so it becomes easier for me to spend cash frivolously. My childhood friend, who is exactly my age, thinks in an opposite way. He is tight with his cash but loose with his cards, because to him cards feel less like spending money than parting with cash does. Everyone is different. Love this channel.
Roderick, in all the time using your debit card have you ever had fraud issues? Almost everyone I know has including myself. Just curious.
Hi there, I guess I’ve been fortunate as I have never had an instance of debit card fraud so far.
Hoarding. Guilty. Not because I like seeing zeros in my bank account but I worry I’ll need it later in life for emergencies and runaway inflation.
You are a prepper more so than a hoarder
@@grayghostmoseby7123 I disagree (I’m a prepper). While Michael is focused on what might be in the future, he’s missing out on his life in the present. It’s all about balance, Proverbs 11:1. Be prepared, enjoy your life on the way. Nobody is promised tomorrow, Proverbs 27:1
I’m also guilty of this. I grew up extremely poor and as a result I am always saving for “what if”.
I've become "that kind of person" who uses the card for bills that pays the most cash back and I pay it off each month. I prefer having one payment date for everything and I take advantage of 0% interest for big things so my cash can stay invested. If I don't have cash, I tend not to spend.
Same
A big difference between a credit card and a debit card is that a credit card gives you the option of disputing payment if you don't receive the good or service (or what they provided was unacceptable), forcing the credit card to do an investigation and putting you at an advantage with the merchant/service provider. A debit card does not allow you to do this. The threat of a credit card dispute is often enough push a reluctant merchant to make the situation right.
Also for large purchases a credit card will very often increase the warranty, even adding break/stolen insurance.
If you can afford to pay cash for an item, and choose to use a credit card for other reasons, that's fine. But if you can't afford to pay cash, you can't afford it.
Regarding the credit card versus debit card Dave Ramsey conundrum, in my opinion, the credit card is the single best means to protect any purchase; the debit card is the single worst means to protect any purchase. I love and respect Dave Ramsey (and Geoff S), and I completely understand that he can not justify the credit card purchase because he is fighting the psychology behind poor credit card habits. If one on one, Dave R would tell you what I just said. When you are smart enough and have a robust working system in place, you need to use a credit card, points based or not. This keeps all of your purchases separated from your real, actual, cash, money. After your wise purchasing is reviewed/returned/disputed, then and only then, when YOU are ready, do YOU initiate a "bulk" payment to fully pay off the credit card, each and every time.
Thanks for your feedback, for more guidance to generate maximum profits on your portfolio
WA our office
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
Agree-we’ve had to protest charges from time to time. May have to do so again. After hours on the phone no one could give us a credit for two weeks of no internet by ATT (construction going on for the road in front of our house). I’m going to pay but charge and protest. Not huge $$ but the principal of it
Wouldn’t be necessary if businesses had decent service but they don’t.
I'll agree with #1 thru #6...all common sense money saving/management ideas. But to put "Hoarding"...#7 into one of the worst money habits of all time is hypocritical in the least. If one chooses to be an avid saver pre/post retirement that habit should be highly commended!! It's my own personal business if I choose to build significant wealth...even if it's for the sole purpose of taking pride in looking at a huge savings/investment portfolio. I'm missing out on nothing if most "money pits" don't interest me.
Status shopping - LOL!
This all comes down to needs & wants period being frugal, not cheap. Also, if you're able to fix or repair things yourself never call a service repairman only as the last resort. We should all learn to manage our own retirement accounts/finances. Likewise, for example, sometimes sealing your driveway is cheaper to hire someone.
I love this channel. I see you are in the Chrysler Building. The lobby of that building is incredible. TY for your insights and wisdom.
You mentioned the buyers high. I live in Vegas and it's fun to watch people at the slots, I call it losers high. The play becomes faster and faster.
I pay myself first. I use a spreadsheet to budget each paycheck. Unlike many - I believe I am correct - I save to invest. Have I been guilty of binging, yes.
I did buy a watch that I wanted, but dealt with a lot of watch brokers; this one was willing to give me the discount that was fair to both of us, 33% off list. This was a want, not a need. And, the watch, a Tissot, I had done boocoo research on.
Finally, I think I do have money hoarding tendencies. Maybe I am too conservative with my money.
Sounds like you are thinking about the right issues. Keep going!
Another excellent video! Thank you!👍🏽
Thanks JP!
Recently, there has been a check washing problem through our local post office,and a bank representative recently suggested that we pay our bills by credit card to avoid the potential for check washing. Just a thought.
What is "check washing"?
@@morgan97475 washing the ink off the check, then writing whatever you want.
@@robertmueller3267 Thank you sir. I also realized I could look it up on The Google....duh! I was unaware of this problem.
keeping up with the Joneses, I am a Jones. if you are trying to keep up with us your on the wrong road, we are just an average couple trying to get through another week. Geoff I love your advice. I am retiring the end of September 2022.keep up the videos.
Crack me up we say keep up with the Jordan’s and we are like you average couple retired enjoying grandkids!
Some very good points in this video. The title addresses money habits, and habits are behaviors. Math is not a behavior. Paying off debt, instead of incurring it, is a behavioral choice with mathematical consequences. Paying debts smallest-to-largest reinforces the very sound behavior of debt elimination versus accrual. Likewise, any behavior that deprecates the value of a credit score is in your best interests. After all, a credit score is nothing more than a number that tells lenders how much money they can make by extending a loan to you. It is a fallacy that a credit score actually benefits the borrower in any way.
help me out with your excellent point what behaviors can i use to reduce my credit score. thanks my friend
@@DrSchor - Eliminate debts by paying them off. Don't incur new debts. With no debt to track, the three companies which do so have nothing to work with and your credit score becomes "indeterminate", meaning they don't have enough data to say whether or not you're a good credit risk.
@@jasonbroom7147 clever, jason, it is a much better idea than worrying about having a low score
@@DrSchor - Many independently wealthy people do not have a credit score, for this very reason. Debt-financing is how the poor get poorer, while making the rich, richer.
Before we spend any money on anything , we take 24 hrs to think about it an ask ourselves is it a " NEED OR A WANT" ?, interest rates are 0% on all Cr Cards, on a tight budget an saving money monthly, we always buy in bulk, yeah, me an the wife are not status concious, more frugal an blue collar, love the "ORACLE OF OMAHA", we always pay our bills on time or ahead of time, I know highly unusual. An we keep enough cash back to cover emergencies, mainly home repairs, Did you find that book I told you about ? Thx for the vid Geoff.
Great video. Spending everything you make is a mental illness, not because you really need that junk.
Especially since the pandemic, I use my one and only credit card to pay most of my groceries, gas, meals out, etc.
But, I also enter EVERY transaction into a wallet app, so I know just where I stand at the moment. That includes accruals like an amount per mile that I drive to cover the coming expenses of oil changes, new tires, etc that don’t happen every month. Same with property taxes, home and auto insurance.
For me it works pretty well. When I get to the end of the month, if I’m in the black, I can choose to buy a treat of sorts.
I use a credit card for all my discretionary spending and run a spreadsheet to keep track of my purchases, I have auto pay on my home bills as well as my CC to pay it in full each month. I do not like to use a debit card do to the fact that if it is compromised my account could be drained and then I will have to try to get the money back.
Most people who struggle financially have cable television or Internet. I have no cable or Internet. I know people spending $200 or more. Screw that. Put an antenna on your roof and watch over the air television
I don't agree with #5, I use my CC for groceries and utilities bills and get rewards dollars. I am highly disciplined. 😊 Since the pandemic, my spending pattern has completely changed. It was a life changing event. No longer interested in stuff.
I was wondering about those who wrangle their plastic to their ultimate advantage in miles, other rewards and actually we should pay very close attention to our plastic. I do not make card prestidigitations🤓though I'm coerced to carry more than Amex, that's my primary 💰. Some shuffle their plastic for interest free open cards. Me, I'm looking forward to a point of all my expenses are on auto debit from my account, settled and I can close any left open long dead stuff or is that still a no no 🤨💁🏼♀️‼️I last read as well credit has better protection against fraud and cleaning one out as opposed to debit usage. Who really knows @S CT. We will just have to see how this all shakes out.
“I got rich using credit cards to get points”. - Said nobody with real wealth. Ever.
@@edhcb9359 I guess I missed that chiseled in stone scripture.
The same here,with COVID the credit union stopped accepting personal visits making cash hard to get,I started using the credit card for almost everything. Also the walking distance credit union branch closed permanently.
I don't have a debit card. Too much of a risk. (They finally began allowing visits if you wear a mask)
I do keep some cash for buying gasoline for the car,I fear putting a credit card into a gas pump.
Bills that can be paid online from a checking account,I pay online avoiding the risk that the check will be stolen and "washed". However the electric bill must be paid by mailed in check,the online pay has never worked. Wasted a lot of time trying it. Right now watching my online account,the payment check I mailed in over 2 weeks ago hasn't yet cleared. At least once before have gotten an electric bill showing a missed payment the previous month's bill,paid double and then the check for the "missed payment" showed up and the next bill was for almost nothing. Suspect the electric company misplaces the checks and then finds them later.
Dominion: The gas company makes online payments possible,so does State Farm and so does the very expensive Verizon Phone and Internet,so does the County Tax and Water Bill Collector,I think you could too.
It's not debt if you pay off all your cards every month.
We are living on 1500 a month, we only purchase food and other necessities. Question we have a HELOC that is a 2 part (60k under 4%) in fixed rate and the rest is variable 135k available 0 balance. If interest rates go too high can the bank call the fixed rate balance part because they are losing money?
I pay off my credit card 3 times a month. On the 10th, 20th and end of month. All other bills get my immediate attention as soon as they are known. The electric and gas company deduct automatically from my checking account. I've done this for 40 years now. I don't have to send in a check. No postage ever. I've saved hundreds! Paying bills on time, every time is my goal.
Today I was tempted to make a purchase online. I did research the product for a little while, and then I clicked away. My fun is looking but not owning.
I think you are preaching to the choir, but I am here every week, Geoff.
I'm curious as to why you pay your credit card three times a month?
@@skibum6422 No legitimate reason that I can think of. The only thing I can think of is it keeps my credit score the highest possible by having less of my credit being used at any point. My credit limits are pretty low. I have only 2 cards and I've held them over 25 years. My credit score is always in the low 800's.
@@daveschmarder-1950 I'm curious as to why you are so obsessed with your credit score. Unless you are going to take out a mortgage or car loan in the near future, what does it matter?
@@GrandpaShark It doesn't matter at all. To me it represents being successful. I don't expect to ever apply for more credit. I've locked the credit reporting agencies out of using my credit info years ago.
Geoff, regarding use of a credit card; I have the same credit card you "recommended" in another video. My wife and I use it for buying groceries, gas & occasional dinners out and we always pay it off every month. Why? Because we receive a 3% cash back on those purchases, and use that money to reduce the balance owed at the end of the month. Last year, using this method saved us over $600. Does it take discipline to do this? Yes, but I'd rather - with a little effort - have the money still in the bank, than fluffing a credit card CEO's salary.
Anyway, love your channel and the content. Thanks!
Thank you - great card by the way!
What is the credit card that was recommended?
go noles
Thank you Mr Schmidt!🤑 You know, my brother was single and now retired. He always had new cars, boats, campers and now being retired he has minimum SS do some issues in his working years. I saved and drove used cars, raised a family saved my income into retirement accounts and now I feel I have to help my brother financially.
I hear you!
No, you do not need to financially support someone who is bad with money. Even if he is your brother
I have a theory that if people stopped at owning 8 pairs of shoes (women especially) and instead invested shoe money in the S&P 500, people could retire in more comfort.
How does your theory account for lack of comfort due to sore feet from shoes, especially women's high heels?
I have 3 pairs of garden boots, 3 pairs of shoes, and umpteen slippers! LOL
10 years til retirement (fingers crossed) and luckily none of these apply to me although #7 tugs at my shirt from time to time.
You are not alone!
We do use a credit card to pay some larger bills but only because we get cash back - every bit counts. We always pay the full balance and we also mark the expense down the day we pay so in our eyes its out the door. We have always looked at credit cards as conveniences and not credit.
On cars, I was fortunate enough to work at companies that were suppliers to many car companies. I have worked with Honda, GM, Ferrari, Tesla and more. This made me appreciate a transportation vehicle even more by understanding that a $90,000 BMW is not 3 times better than a $30,000 Honda - actually a Honda is probably better on price, reliability and long term cost. Don’t get me wrong, if someone what’s “and can” buy the BMW have at it but don’t tell yourself it’s a better car - it’s ego and perception.
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I am using a credit card to pay most of my bills. I offset the risk though by having the apps on my phone and monitoring the usage on my credit card. I have a maximum I will spend for twice a month and that is not only bills but all discretionary spending. By paying off twice a month it means I don't let things get away from me. I found I had more money left over at the end of the month. But I still agree it distances you from the money you spend if you don't keep a strict eye on it. In the final analysis you have to use a system that will work for you.
Plus, with a credit card, as long as we pay them off each month, we get the cashback bonus! The new Capital One has 3% for food purchases (groceries and restaurants). No brainer!
But some bills paid with a CC also tack on a fee.
9:02 Your number 5 is a little too old school for today's consumers. Your advice here was far more accurate several years ago than it is today. Most consumers today engage in auto-pay so there is no check to write or cash to hand over. The question now is merely which account to use for auto-pay (debit card, credit card, checking account, or digital app). For a great number of consumers, using a cash-back credit card (or reward points credit card) to auto-pay their bills is often the best way to go. The consumer is "paid" (cash-back) for paying their bills, they continue to collect interest on their money for another 25 days before the credit card come due, some companies give discounts for using auto-pay, the person's good bill paying habits are reported to the credit bureaus to improve their credit score, and the improved credit score both improves their ability to get future financing approved and reduces the costs associated with future financing (to buy car, home, whatever...)
Your rule was a good rule in its day, but I feel the system has changed enough that it is a new day for most consumers so it is time for a new rule given that the majority of people now use some sort of auto-pay feature. Using auto-pay also serves to eliminate those late fees and finance charges resulting from mistake number 6 (late payments).
Never ever would I use a credit card to pay a bill.
OK Jeff, I hit my budget every single month on Mint and pay as many bills I can with credit cards. Plus I maxed out my Roth IRA for 5 straight years. Maxed out HSA for the last 2. This year no HSA but I'm doing 15% in my 401K in addition to the Roth IRA. Of course I spend more because I have more money to spend when I get several hundred dollars in cash back and use it all at once on a big ticket item.
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
Are the numbers correct ? Warren Buffet bought a 6,500 ft house in 1958 for $31,000.00… if the numbers are correct, Guess what, Warren Buffet was always a very wealthy guy. The average middle class house in 1958 was $7,000 dollars or less!
That’s about $337,500 in today’s dollars.
www.usinflationcalculator.com
I hear many different answers on filing income tax when you collect social security. Someone told me you don't need to file income tax if you are collecting social security. But isn't social security considered income some you still have to file it on our taxes? The this that confuses me is how it will work when I retire. If my ex is to receive half of my social security then I am assuming I will receive half of his It doesn't make sense why I should have to wait to collect his when I retie and then he gets half of mine.
If your only income is SS you probably don’t have to. It’s when you have other income also like pensions or IRA distributions. There’s a tool on the IRS website that will tell you if you need to file or not.
High and still high. Plan on leaving this job in February at 65. Twenty plus years at a job I hate is enough. A love of Macroeconomics and history tells me I have nothing to worry about. Though my wife became very I’ll again 20 plus years ago and we almost went belly up I’ve invested well. Though I make slightly less than the national average I live in WV so I make “good” money. Hang tuff people. This is up to the Fed and Congress. You nor the President can do a thing about it.
maybe your best video
Binge spending is a dopamine high for people.
Warren Buffet in a 6500 sq foot home is a bad example. Its still 6500 Sq feet....LOL
Yes but… it’s Warren Buffett
1) binge spending (compulsive spending) 2)ignoring interest rates 3) living paycheck to paycheck ) watch subscriptions automatic renewal stuff)4)status shopping 5) using credit cards to pay your bills 6) paying bills late 7) hoarding your money
If you have autopay with debit card and you mess up you could have overdraft fees.
09:07 Debt to pay bills. This is one of the few times I have to kinda disagree. IF you pay your bills off at the end of the month AND have extra that you're saving then this really shouldn't be a problem.
Don't forget that:
1. Auto payments with a credit card will tie into his point 6- On Time. It eliminates late fees / penalties.
2. Paying with bills / debit cards / checks- Can also hide spending. If you're having problems tracking how much your bills are you're just as likely to not keep track of your checking account balance, or how much you're withdrawing if you're using cash.
Plus certain credit cards offer additional discounts / cash back if you use them to pay certain bills. Like your cell phone bill.
Essentially, while eliminating using debt MIGHT help out if you're having a problem managing your spending it will most likely not solve the underlying problem. At least not in my opinion.
I definitely appreciate the downward spiral and continuous loop explanation that happens with paycheck to paycheck living. Unfortunately, too many people have no way to get out...the month they choose to spend nothing to "recover," an unplanned expense will occur: a car will become disabled, a child will break a bone, a moving voilation you've committed for over 10 years will suddenly earn you a citation, a partner will be laid off or some other downturn-in-earnings will occur. I can go on and on and on about the slightest life-offense events I've heard that have kept individuals, and families, in the cycle of poverty that would be minor inconveniences to a CPA or the middle class...that it's criminal.
Thanks for your feedback, for more guidance to generate maximum profits on your portfolio
WA our office
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
Finances is 80% behavior and only 20% knowledge. That is from Dave Ramsey. I own a semi truck and trailer and we run it using only cash. No credit cards or credit of any kind. My philosophy is if you can't pay cash for it, you can't afford it.
I know that you are not a fan of subscription services, but how do you feel about credit monitoring/protection services (Lifelock)?
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
My credit cards do that for me for free. I got access to my credit report and they email me and text me anytime something happens on it. Last time I opened the new credit card I got within 10 minutes got five different texts from five different credit cards telling me about a new credit card in my name.
Needs to be taught at home, not teachers responsibility to raise your child!
I always pay for EVERYTHING with my credit cards - for AIRLINE MILES - and 100% pay them off every month. For YEARS..... ZERO balance. In NOV 2021 - I flew to Thailand FOR FREE using my MILES............ in Bangkok now, but going back to "stupidville" in 8 days. So sad.
66 years old ......... NOT retired yet, but getting my S.S. now......... but will be looking for a SAFE income when I get back because S.S. is small......... and want my annual Thailand trip...... and can't live without it.
My aunt said “ if the purse cost more then you have money you have in it, then you shouldn’t have purchased the purse”.
Why do people want to pay off their mortgage, then end up having to equity release later just get by? Seems odd to me.
Mostly good advice but I strongly disagree with not using credit cards to pay bills. I save money each month by having auto pay for phones, internet and other services. Also I get cash back every couple of months that gets applied directly to my savings account which is free money because I never pay interest due to paying off my card in full every month. I monitor my spending by going over my statement from the bank each month and add up different categories of spending to see what my habits are and make adjustments for the next month.
Thanks for your feedback, for more guidance to generate maximum profits on your portfolio
WA our office
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
I like what you said about people who spend just to look like they’re in a higher class. I hate the “Keeping up with the Joneses” mindset. I just mentioned yesterday that the richest people in the restaurants in Manhattan often wear jeans and T shirts.
Thanks Cindy.
Geoff, I have had the 'aren't I sumthin' rush of dropping a load of cash in one day. No gamer here but post divorce furnishings⁉️ However what you say is true and the 💸 is not getting compound interest etc once spent, but gads, for example BEHOLD: what a movie theater set up😳‼️💸 Outside of that and the usual money mistakes I think myself no Hattie Green (talk about missing life,) but I'm working a trajectory I hope pans out. Looking hard at Panama. No mail, no addresses is a good pill to swallow ahead of time. Panamanian Spanish is different than say Mexican or Castilian dialects as well, just saying. One problem with being completely dialed down budgetary wise(mine,1.25% mort, Watch the utility discount hours like a hawk, driving a used Nissan Leaf whee!), is there's little place to further cut back! And that is where plan b 🇵🇦 comes in. Great stuff. Appreciate your generous, easy to understand videos🤗💯👵🏻‼️🇵🇦
Panama is looking pretty good these days.
Thanks Dawn!
My biggest vice, besides smoking and drinking too much, is going to the strip club. After payday I love to "make it rain" and the girls dig it. I even took another job that paid me weekly rather than my previously monthly, even though it was less money because like to go to the club on payday.
One way to go : sell your TV, terminate your video subscriptions but subscribe to your local library. Don’t travel, stay home, read books, talk to friends and family. And cook your own food.
In two years, you will be healthier and wealthier.
I'm with you!
But travel while you are young and healthy!
Credit Cards are so passé
Isn't using a credit card more secure than say a debit card?
yes without a doubt
Yes, absolutely. My debit card is limited to the ATM at my bank.
This is oversimplifying, but If you have fraudulent transactions on your debit card, it’s your problem. Fraudulent transactions on a credit card are the bank’s problem.
YES!
I'm retired and guilty of #7 but I'm debt free
十𝟏𝟕𝟒𝟎𝟗𝟕𝟑𝟐𝟔𝟕𝟕埋面埋
my bar won't let in any horses unless they have their shoes on.
Agree that no one is perfect, but I'm really close on this one ;) My only "fault" would be that our spending is so low that the cash builds up so fast. Oddly enough, we usually only spend when it's both efficient and effective as it's easy to anticipate our needs and watch for a good deal well ahead of time. I'm also one of "those" that view everything as "cash" from credit/debit cards to cash and even store credits and gift cards as that's their true nature...frankly I'll never understand how most others can't see this. I have a relative who thinks as long as they have a store credit or gift card everything is "free" and no amount of explaining that it's a cash equivalent will get through to them. This while I have to constantly suffer their complaining about how broke they are which makes me wonder how this can be since so much of what they buy is "free", lol.
Even when I try to spend money, it never seems to work out. I've been wanting to get a drill guide to drill perpendicular and angled holes with a cordless drill in larger lumber or when I'm away from my drill press for almost 30 years now but every time I looked at them they had really bad reviews so I'd always just figure out another way to do it. I've been re-organizing my tools and thought I'd take another look at what's available now as there are a few newer models. Turns out while they're much better, they're hundreds of dollars and I'll never come close to making that a worthwhile purchase. Instead I found several videos of guys that built their own, and by refining the design not only can I make a great one but I can save even more. For instance the store bought ones can be used with any drill and have a 3/8" chuck to hold the drill bit but if I make the upper carriage to custom fit my cordless drill and just use the drill's 1/2" chuck I can completely eliminate the additional smaller capacity chuck, drive shaft and 2 bearings, making it more accurate with less run-out. I could purchase the 2 main precision shafts online for about $20 or I can scrounge some from old copier/printer parts or even from a couple of old shock absorbers which I can easily get from my friend's shop. The rest is just scrap 3/4" plywood I already have in abundance and about $10 worth of hardware, much of which I already have. By making the ability for the 2 main shafts to adjust below the base and thus tilt the base, I can drill angled holes simply and accurately as well as using them as centering pins when drilling in the exact center of a board. The best part is that I've got a new fun project to design and build which is priceless...Cheers!
"Woah is me...what am I gonna do with all this money???" 🙄
@@mangos2888 It may sound "funny" but its actually a bit of an unsolved "problem" to find a way to effectively and efficiently spend it in a way that will meaningfully improve our lifestyle. Imagine after all the bills are paid, the meals enjoyed, our needs and modest wants all met, the investments made, our savings bolstered and even the all of the vacations taken to have a sizeable chunk left with no need or desire to spend it so it just becomes the beginning of next year's savings and investments. A nice quandary to have but still a quandary.
@Pinnedby Holy Schmidt!.. Don't call this number...it's just some guy that can't stop talking about how much he loves chicken nuggets, picking his nose and eating the boogers. Interestingly enough, he loves BBQ sauce with his nuggets and sweet and sour for the boogers...a true gourmand.
Great video Geoff. Never too late. I’m in the process of refinancing my mortgage and unfortunately it’s a bad time for that because I’m going from 2.99% to 5.5% but I need to cash out and pay off credit card debt and 2 loans. Inflation is killing the economy, feds raising interest rates is causing mortgage rates to go up. Not my president for sure. By the end of the year I need to eliminate almost as much debt as possible. I’m a little under 5 years until I retire (Dec 2026) and need to be as close to debt free (except my mortgage) before I retire as possible
Hi Stephen, it sounds you are focusing in the right area.
@@HolySchmidt my loan refinance paperwork is showing an increase in my mortgage payment of nearly $725 based on 5.5% interest rate !! Financially this isn’t a good decision. In 60 months time that’s nearly $44k in extra mortgage payments. I’m going to withdraw $ from my TSP (10% early withdrawal penalty) and pay off all my debt. The main purpose/reason why people refinance is to lower their monthly mortgage payment not increase it.
@@stephendibari5010 Glad to hear you backed out of the bad deal. The one time 10% penalty is a much better avenue, IMHO. You’ll sleep better, Psalm 127:2 KJV.
@@barbaraguy3491 thanks! I edited my response above to show what the actual increase in mortgage payment would’ve been! $725/month. Totally ridiculous. The loan officer gave me this final amount then I killed the deal.
The videos are awesome. That holy schmidt bit at the beginning is REALLY annoying.
It’s expensive to be poor.
I say it's miserable. I can't understand why some people choose it
It is stressful to rich, so stressful, if it wasn't for the money, I would not do it .