Nice sweater- an xmas gift? You left out one trap that has ruined many mid-level celebs. Substance addiction has ruined many lives both famous or not. Part of true wealth is having other people who will be there for you when life goes wrong. Their job is not to fix you; much if that comes from within one day, hour at a time. Others can support (not enable) through a place to sleep, food, encouragement and perhaps through firm caring (tough love) help the addict reach a realization the addict has a problem - hit bottom. When the movie goes bust, one’s investment goes south (your widget patent expires or is the passé fad), etc. and one has an addiction problem are there people who will be there for you (have your back)? Too much of an entourage will become “hey, where’d everyone go” when the $$ are gone. It’s a matter of “paying it forward” and deep personal connections (this is why “kin” is so important in many cultures). It’s a matter of if asking yourself not only “are there people with whom I would share my last cracker or pizza” but also “are there people who are certain I will do so for them.”
What I think and it also in my culture too is that we see superiority when one has more money than others. However I believe it may be in other societies as well. I have a bad habit of spending on things that clutter the house and it stirs up anxiety. I am retraining myself to avoid that. Though it’s hard because my situation has gotten bad over the years and it gotten to a point where I’ll have to use a gift card to buy what I can. I get influenced so easily that I don’t watch my own status.
that and from the house her family is living in, it seems like they were at least middle class and moved into upper middle. she was probably given solid advice and its really helping her out! but thats just my own theory, idk if shes ever talked about how much money her family has made 🤷♀️
She’s smart and humble- this combination means she was probably able to find a good financial advisor worth trusting, and actually listen to what they say
Emma Chamberlin proudly proclaiming she doesn't know how much money she has....ok girl lmao. "People are gonna say this is irresponsible" because it IS. A lot of the people getting robbed by their money managers have been robbed by family members that they pay WELL. It's never enough money when they know how much you have and how little you care. Sincerely hope she stops that immediately before she gets left ass out.
@@tonijackson3421 not sure what exactly gave you that impression. If I just wanted to be mean I could have insulted her and left it at that. I can’t control what tone you read something in but try reading it again in a different one and maybe you’ll think differently. I could say the same thing about your comment, couldn’t I?
Just because you have a lot of money does not mean you know how to use a lot of money. Good money management isnt about intelligence or talent, it is about discipline, self awareness, values, and listening to people (like Cara!) who know more than you.
That is on so accurate!!! I agree witht he use of money and I would add that investing money on long term projects ( not only in trading but in objects that will last a lifetime) is something that we , as consumers, should focus more on.
… the last part is a no no, 😅 it IS about intelligence and no you shouldn’t just listen to other people when you could learn and have the INTELLIGENCE instead of listening to a random stranger with a degree and getting scammed. What a kiss a$$ comment
Lifestyle inflation is so real. You think you're treating yourself and sometimes end up trapping yourself. My biggest struggle as a freelancer is when clients end a contract abruptly. It feels like if i charge super high, it's harder to book clients. However, if i charge moderately (not low) it feels like I'm living paycheck to paycheck or at minimum wage because of how taxes are set up. Le sigh
Lifestyle creep is so real. And it's not always about having a nicer house or nicer cars. When you make more money, you suddenly feel that you DESERVE BETTER. And I think part of that is valid, but most people don't stop at just a safer, nicer place to live or a slightly nicer car. They start spending more on clothes, handbags, shoes, going out, more expensive vacations. It is never just one thing. How you handle your finances when you start getting a higher salary, is also a good litmus test on how you'd act if you won the lottery. Most people THINK they'd be smart with money, but if you're being bad with money with a 20K salary increase, chances are you won't be smart with a 3000% salary increase.
One area of lifestyle creep that isn't exactly bad, just not well discussed, is people coming out of poverty. For a long time, I was freaking out because my finances weren't increasing as quickly as I wanted them to because there was just so much to replace. I had shoes with holes in them, my clothing was worn threadbare, my mattress was dented since I'd bought it second hand, and I hadn't been to a dentist in four years. I was worried about lifestyle creep before realising that the costs I was paying were just normal parts of life that I was catching up with. Once those things were paid, I was able to start saving money much more quickly. I know these are different situations, but I do think it's an area people forget about when they ask why someone with a new job isn't immediately starting to save money.
@@sebastianmaker6798that is a good point, you should definitely invest in your health, get all the regular check ups that you should be getting. Buy a better quality mattress, as it also has a big impact on your health and quality of life. But people get conned by sales people, that includes the dentist that will try to sell you work that is not necessary. It is nice to have nice things, we all like it, but we all need to think long and hard on how it's actually going to improve your life.
On top of that, we can add the insidious, "natural" lifestyle creep: not the one you create by buying more things and/or more expensive things, but simply the one that comes from inflation + getting older (= not getting young people discounts anymore)... E.g. when I think back to how little money I spent when I was a student, compared to getting the same things now, it's scary. Public transportation is more expensive + obviously I can't claim any 12-25 discounts anymore. Same with restaurants/shops that give an age-based discount. Same with health insurance and insurance in general. Etc etc. Not complaining because typically, as a student, you don't have much means so these discounts are lifesavers, and I totally get that. The point is that, when you factor in this "loss" along with inflation, we're already experiencing a baseline lifestyle creep. All these things just cost more overall, and "living below your means" is more something imposed upon us than a choice that makes much of a difference. For instance, sure, I can opt for cheaper food brands; but they still are more expensive now than what their equivalent from 20 years ago would have been, compared to what I would have earned. So unless I stop eating altogether, my margin of maneuver isn't _that_ big... :(
Dude yes, I got a pay increase when I got a new job and I still try to spend just the same amount as I did before. My bills didn't increase so why should my spending?
No part of that statement is valid. People that have money don’t DESERVE better than other people. Do you even realise what you are implying here? They can afford better but they definitely do not deserve better than any other human being. That’s an insane thing to say. Seriously.
I know doctors and lawyers who make a lot, but live paycheck to paycheck. The entire concept of living below your means is foreign to some people unfortunately. There’s a reason we have record high levels of debt, credit card, personal loans, car notes, mortgages…
I think the other issue is that a lot of influencers don’t understand the tax side of being self employed. Like, that can be pretty complicated, and given how young and inexperienced some of these folks are when they make it big, it can be easy to trip up there.
i think it was a interview Britany did with Trixie Mattle, where she talks about prior to going viral, she worked at a bank, so it makes sense she's a lot smarter about her large influx of money now with her banking background
I think if people who had no money get into money they become better at spending it because one, they DON'T wanna struggle again, but also they know what to do and not to do. This is why I don't trust financial advice from billionaires.
@@vvitch-mist20not necessarily. Money is often equal to education so having no money correlates to not being financially educated. Having then a large influx of money when you had nothing makes you want to experience it all but without knowing all the investments you can do or doing bad ones etc, therefore burning thru your income
Look at the recent issue of Mary Lou Rhetton, former Olympic gymnast who has to do a gofundme because she has no health insurance even though she makes $25,000 a speech. Or look at Kate from John and Kate who had to sell her house and go back to nursing because she blew through all the money. I think that’s what’s so dangerous about our reality tv/influencer/athlete culture in that you have a lot of average people thrust into wealth and limelight and then thrown away at a moments notice - unprepared for life after all the attention.
More than that. She lies in a 6M house and her grifter daughters stole money from poor people to pay for her care because she REFUSED to get insurance and publicly denounced Obamacare or any state exchanges. Sorry, no excuses for their terrible behavior.@@rosesweetcharlotte
Schools should have a mandatory curriculum at senior year on finance. How to pay bills, file a w2, invest, where to buy stocks and not some sketchy place, etc *Ik schools teach it for like a day or week but that’s too short. It’s needs to be an all year class that’s mandatory in 12th.
the same people sleeping thru history class will sleep thru personal finance class. People will whine "I wAs NeVeR tAuGhT" but the info is out there at their fingertips. They have to want to learn it. And if you don't believe me, watch Caleb Hammer's repeat guest episodes
Pretty sure I lot of schools have that, I did, but it’s pretty useless when most kids have a super part time job and don’t make enough to pay taxes on so they don’t get a chance to practice until well into college
@@Michaelengelmannmy school has a personal finance class that lasts a semester and nobody wants to learn in favor of having more AP classes in things like calculus or biology because it looks better on college applications sadly
I thought about this when Drew Gooden made his car video about 4 days ago. He drove a ~2012 honda civic or something for many years and just got a new used Hyundai sedan. that stood out to me as impressive, he is smart with his money. most of the influencers that live in LA and follow our consumerism culture will most likely lose their wealth
love Drew Gooden! maybe parasocial of me to say, but he definitely seems like someone who would be smart with their money and not go overboard with spending
From what Cardi B said I suspect the only difference now might be in the units she does the auditing. Once she probably tracked down to the quarter or dollar level. Now thousands could be the unit of accounting. Or perhaps lower. But IMO Cardi B knows it is HER money and she alone must take responsibility. Otherwise, “easy come, easy go” that became “live fast, go broke, (busk) and die young” could be your obituary.
Yeah, seems like Cardi B has things set up so she can easily check these things. And she seems to have a base-line idea about how much things should cost.
A lot of these ppl grew up poor and think "flexing" is part of being rich. Their parents never had enough money to teach them how to budget. I always think of trixie and katya. Trixie grew up in a trailer and is constantly namedropping and opening new businesses. Katya grew up middle class and seems to be way more reserved in her spending.
I kind of disagree on this one… Trixie opens a lot of new business but doesn`t seem to actually spend a lot, she talked about it in one of her recent TH-cam videos. We see her spend a lot in wigs/clothes etc but it IS an investment at the end of the day, even her Barbie collection could be considered an investment.
There is no correlation. Rich people also flex and end up going broke, showing off is a common phenomenon, anyone spending beyond their means will go broke.
@@gabrielavieira4670Trixie also financially supports her family too. And for her wigs, she usually hires her friends too. Idk if she comes off as too much of a “flexing” kind of person because I can think of drag queens who are worse.
Trixie is one of the few millionaire drag queens and is renown for her work ethic. The fact she specifically branches out so much is wise bc she can fall back and any one of those ventures. Most other queens are obsessed with the “rich woman fantasy” and spend as though they are which is truly dumb … as for Katya , she said herself that Trixie is the true rich one and it just so happens that I encountered two confessions she’s made about spending /investing in things that made no money (her custom pink leather suit and the dentist immersion experience video )
Im a broke university student who doesn’t make enough money so I just avoid keeping tabs to budget. However, I look at my accounts regularly and try to keep up with payments. It’s just scary to get in the nitty gritty of things 😢
Watch Caleb Hammer’s financial audit videos and start learning now… hopefully you will get less anxious as you learn. ❤️ good luck friend, I know it’s tough.
You should watch Ramit Sethi's channel. He shows you how getting into the "nitty gritty" is actually super easy and not as scary as you think. He's such a gift in the world of personal finance imo
I think the younger you are when you get rich, the less you can handle it. Yes, there are older lottery winners that did the same, but someone becoming a big influencer in their 30s will handle any income very differently than someone in their teens. And a lot of athletes and younger actors have been told over and over and over again by their managers and parents to let *them* handle everything and focus on their career. I don't think we can fault them for believing their parents, we can just fault them for *continuing* to do so well into their adult lives.
I agree. I remember my mom telling me years ago that if she had a large sum of money, she wouldn't leave it to her kids until they were at least in their 30s, possibly even 40s. I remember thinking that sounded dumb, but she explained how younger people don't make best decisions when it comes to money. Now that I'm older, I totally understand and she was right
Yeah I see a lot of young influencers that get rich at like 18 say “idk how much money I have”. Compared to people getting rich in their late twenties or thirties, where they already have had to go through either not having money, or just learning how to be responsible with it in general.
A personal finance courses should be required for every American to take before they graduate high school, especially in the junior/senior years, and again in college/university. I took a one- semester course in high school, and I always wished it was a longer course because it was so informative. The best thing I do is keep a close eye on my bank account, and will certainly work on a setting a weekly/monthly budget to reach some saving goals I have. Been a fan of your channel for a while, great work!
The problem with offering those courses is that personal finance is not difficult to understand. You do not need a professor with a PhD to teach you that. You need the discipline to look into it and learn it yourself and that cannot be tought in a classroom
@@ANTREU96true but people trying to learn about personal finance online today are gonna be hit with so much misinformation from scammers. And if you’re starting from 0 it’s really hard to separate good info from bad
the same people sleeping thru history class will sleep thru personal finance class. People will whine "I wAs NeVeR tAuGhT" but the info is out there at their fingertips. They have to want to learn it and want to change And if you don't believe me, watch Caleb Hammer's repeat guest episodes, where they have all the personalized resources and they still spend like no tomorrow.
If I won the lottery or something I would buy a modest house and new but not lavish cars and throw the rest in the bank. I'd keep working, and try to continue to live off my income as much as possible. Without a mortgage or car payments I would be doing pretty well financially! Man that would be great. I can't imagine blowing it all on fancy stuff. I am just happy if I own a home and a good car.
Me too! My husband and I discussed it. We would have a decent but not ridiculous house paid off. Paid off cars, keep our jobs and invest the rest. Then just take 2-3 months paid/unpaid leave a year to travel somewhere (our jobs are flexible like that, we get 4 weeks paid per year but can take unpaid leave up to a year).
I always say the first thing I’d do is give half of the wealth to my parents! They’ve had a lifetime of managing money and taking care of their needs now means that snowballing medical bills later will be less devastating for all of us down the line 😅
That’s not really the reason most of them go broke. It’s the fact that they attract bad luck. You could do all of this right and still end up dead, bankrupt, or in prison because it gives you a celebrity target within your community.
Honestly, all of these highlights are on point and apply to all of us. I’ll never make influencer or celebrity money and I’m okay with that. What I’m not okay with is a lack of responsibility and due diligence that my daughter expects and deserves from me. Giving her our wealth isn’t setting her up for success in her future. Teaching her how to make, manage and understand money as a tool is much more valuable and lasting in the long term.
If anything, just giving children your wealth is setting them up for failure. It's like giving the car keys to a kid who has never been behind the wheel before.
Very good points made! As someone who started youtube fulltime on a SHOESTRING budget, but has thankfully gotten to a place where I'm much more comfortable 5 years later, I still remind myself that there's no guarantees of how things are going to go down the line. So while I am certainly spending more on my expenses than I was before (no more horrible hostels for me! lol), I still am working on a reasonable budget that allows me to put quite a bit away. This is an important lesson for anyone running their own business, no guarantees of long term success, but having a nest egg will definitely help you through any rough patches or if you need to pivot to another career. Great video!
The HGTV show My Lottery Dreamhome is fascinating because the ads are very like MTV Cribs-coded and actually watching it, it’s mostly like blue collar workers who’ve only ever rented buying a typical suburban home after they win the lottery.
I love this show, it's so wholesome to watch people being able to come into their own or provide better for their family, and David (the host) is so sweet. I think it's also good because he listens to their needs and then gives them a range of options, so they're not necessarily needing to spend all of their winnings.
100 dollars or a million: it's a lot easier to spend money then it is to earn it. And yeah, having a lot of money doesn't mean you have the brains to work with it.
Say what you'd like about Cardi- Trust me, I'm not a major fan- but, she has said it multiple times- "A lot of ya'll would be broke if ya'll made it where I'm at because when I talk budget, ya'll talk down on me!" Twitter. She was talking about this during the pandemic and how the groceries were slowly increasing and then rapidly, her budget in groceries, nearly DOUBLED. She goes into greater detail and then even shared how stocked her house must be with Cereal. Hubby at the time is addicted to cereal. IDK if they're still together after the recent cheating scandal.
Hi Cara, I would love to see a video on a topic I think about a lot these days: being frugal vs being cheap. I often find myself wanting to buy the cheapest option and then realising it likely won’t be an ethical/sustainable option. How do you know the right amount to pay for things?
I'm a student, so I cannot save a lot of money that I get from my parents or my grant. Recently my living costs have reduced, because I've moved in with my boyfriend and now I pay less rent. I've already caught myself thinking how I have more money to spend now when I should actually continue living like I did and save up the money I have left at the end of the month. Thanks for the video, helps keeping me on track and reminds me of my financial goals.
Your video made me think. I currently make more money than I actually need per month and all I know is that I spend way less than I make. Maybe I should keep track of my spendings more carefully! I'm not buying expensive things that I don't need or follow any trends, and recently began to think more about things that I spend money on, but now I realise it's not enough
My friend told me I make money as a professional but live like a grad student. I save and invest about 2/3 of my paycheck. I have a 5 year old car which I didn't have to finance and my fun is my motorcycle that gets 80 mpg. I also go out 2-3 nights a week swing/blues dancing which doesn't cost much and take care of my exercise and socializing. Make life simple.
You covered the main pitfalls. Lifestyle inflation & celebrity comes with the pitfall of an entourage as in “my people will call your people” saying. First think in terms of “my employees” in that once the $ stop rolling in will they be there tomorrow? Just look at many celebs for whom many profiles list an agent, manager, publicist, personal trainer, stylist, …. In today’s direct to followers social media environs, not all these need nit be the norm. But with a larger income and assets comes a class of highly paid professionals that remain vital: tax pros and IP & corporate attorneys. The taxing authorities come after the person(s) who sign the returns or to whom the income is imputed. With lifestyle inflation comes inflation in expenses. The upkeep, maintenance, and RE taxes of a 10 bed, 20 (i perhaps exaggerate) 20 bath, 20,000 sq ft mansion could be over 3x a much more modest house. (These days one has several one needs someone to occupy each one to avoid a “vacant property” designation and squatters.) And then there’s liquidity. One often sees multi-million mega mansions of celebs not selling for years. Ask your self does the 7th bedroom keep one warm and dry any better than the second? Having several more modest houses means one has one which is more likely in a price range that others can afford. Nothing is a harder sell than a custom mega mansion. The late gr8 (LGR8) Michael Jackson is instructive. MJ may have been 100s of millions in debt when he passed but did his estate close out in bankruptcy discharge? I don’t know but the estates of LGR8 Prince (Rogers Nelson) or Elvis (Presley) are still in business (Graceland & Paisley Park). So as a content creator as oneself will my products or IP have some form of staying power. Copyrights last 70 years after death and an associated Trademark can last longer as long as it is actively used in commerce (and vigorously defended). Steamboat Willy film clip may be in the public domain but MICKY MOUSE is still an active TM. Ask oneself, will my core fanbase be with me even three years from now? Can I adapt & evolve (will we grow old together) or reinvent myself? In today’s “ fast fashion” “fad fulfillment” world I suspect the path of “legacy legends” who can sell their catalogs for $100s millions may have passed. (& ask who owns my catalog?) If your IP likely is worth tomorrow what a fast fashion item is worth 10 hours after delivery one needs to plan and save. Otherwise your future may be busking as I was once famous. In the reinvention, second act world “many will enter, few will win.”
I can't believe that many people don't bother budgeting! I've always worked with a budget my entire life. Probably to do with the fact I grew up in a poor household with little money but even now when I'm earning good money we budget so we don't end up in financial trouble! That would stress me out so much
As always, great video essay. You might have done something similar in the past but it may be worthwhile to revisit. The idea of wishful buying. For ex, buying workout equipment with the intention of working out, only to have it gather dust. Or buying pants a size smaller in the hopes you'd lose weight but you never do. Sadly, I've been guilty of a thing or two, lol. Maybe some popular wishful products, from workout stuff, to smoothie makers to running shoes.
I agree with your sentiment for the most part but you can't make a smoothie without a blender and you can't go running or workout without proper shoes. But you can always thrift them or get them second hand until you use it enough to justify getting it brand new :) this is what I do and it works like a charm.
i love this channel & i forward your videos to my adult children quite often. i stressed financial literacy throughout their childhood starting with giving them a "budget" for things like school clothes and book fairs. i also incentivized reading books like the millionaire nextdoor. my kids applied for low-limit credit cards once they had high school jobs, which i taught them to pay in full monthly. they also opened Roth IRA's as youngsters and started paying themselves first in their index funds by small but steady automated deposits. i regularly showed them the balance on their 529 college funds so they could see the wisdom of front loading investing & the returns in compound interest. i got a lot of things wrong as a parent, but i think i nailed their financial literacy skills
That generosity one hit way too close to home. I always put others’ needs above my own, so even though I earn good money I always end up living paycheck to paycheck because of my generosity
It’s not celebrities - everyone has a money problem, the celebs problems are just higher profile. Most people grow up thinking that money has one use: you spend it to get things you want. The more you have, the more you can spend. Until you work out that it’s a resource that can be used to make more money, you’re going to have money problems.
Very interesting to see you know about Caleb Hammer, would love to see you on his show and I think your more emotional approach to finances would be fun and insightful to people who might not know you.
The Celebrity Money Problem can be solved by: 1: Hiring a financial advisor 2: Track your spending on a spreadsheet or App 3: After paying off debt, save 20% or more of your earnings
It’s a big assumption that parents are even looking at food labels before giving food to their kids, there is this mindset that it’s “someone else’s” responsibility to monitor what’s safe / not safe in goods, this idea that just bc the FDA approves food it’s safe to eat, which we know is false but so many people think that way & that mindset transcends into skincare products. It would be nice if they take more personal responsibility in learning what their children use but I doubt it’s going to happen. It would be just as simple to tell the child “no you’re not gonna get that not matter how much you want it bc it’s not appropriate for your age group” but they don’t do that either.
Hey Cara, would you consider making a video on how to deal with a huge influx in money? I am personally expecting to have a huge increase in money because I’ll be getting my first real job. I’ll be going from having to be thrifty with necessities to having a good chunk of disposable income. And while I don’t want to fall victim to lifestyle inflation, I also don’t want to continue living in poverty because all my money is in the bank or in investments. I might actually make the switch from surviving to living and I’m very excited but also nervous. This’ll be the first time I get to actually choose what to do with my money instead of using all of it on rent, bills and groceries. So yeah very excited. Your videos helped me a lot already. If you don’t feel like doing a video on this, I understand completely. I know you probably have your own schedule and video idea and all of that. It was merely a suggestion in case you like the idea. Again thank you so much for your content, I really appreciate it
I really think you'll do great, because you already have the right mindset. It's just a matter of figuring out how much you want to put towards spending vs. saving/investing. My (completely unsolicited!) advice is: pay off debts first (if you have any). You'll be amazed at how much easier you'll breathe without a car payment, three credit card payments, a student loan payment, etc. each month. Then put some towards saving, some towards investing, and some towards living, and balance it so that you are doing some of each. Also, recognize that you probably will make some mistakes along the way - we all do - that's called life. Just keep your eyes open and learn from the ones you do make. You're gonna do great.
Your work will probably have someone there who can go over retirement options with you. Those guys usually will give you some options for budgeting too. And don't feel bad about consulting professionals outside your job
WHat could also help is increasing your spending money slowly. If you have a baseline for how much money you need to take care of basic necessities, like you seem to, then you can see how you do with an additional 100 or 200 of "allowance" and keep the rest in the bank at first.
Congrats on your first career job! Quick tip -- Always get that 401K match if your company offers it. It's free money. Also, a good suggestion is to automatically up your savings when your pay goes up either via raise or a new job.
My advice is to set up a budget and have all your expenses laid out on a spread sheet or in the notes app. You can give yourself a set amount each month to spend on non essentials like eating out, cute clothes, fun experiences etc. just make sure you stick to the set amount within the budget
Part of me thinks that if I became suddenly rich I would be GREAT with my money, but another part of me thinks I would be an idiot about it like a lot of people. I main issue would just be awareness and still being VERY careful with spending like I am now. it is absolutely also something to say about consumerism and the whole “I need to reward myself” mentality. If you don’t have any money to spend, why are you buying yourself a coffee as a “sweet treat” every day 💀
Due to my consistent budgeting and saving, I had to buy a ticket for a flight after my first way cheaper one was cancelled. I did it without any issues and knew I was still way within my travel budget. The fact I heard people panicking around me because they didn't have the money to rebook broke my heart
This is maybe an exaggerated example, but i see people in the Forbes billionaires list come and go in the spam of less than a year, lots of them broke... Then nothing in terms of money is secure unless you learn how to manage properly within your means.
The fact that ppl “hit it big” (whether the lottery, fame, inheritance, and the rare occasion of actually working hard lol) and immediately thinks that means they have to spend big is the problem. People start over consuming everything from homes, cars, clothes, luxury goods, vacations, property, etc. and they never stop to think “do I really need or even want this shit?” Buying 6 luxury cars is overconsumption. Buying a $6M home is overconsumption. Going on multiple million dollar vacations a year, is overconsumption.
It's never about how much you can earn but all about how much you can save. Some of them just have no awareness about how important it is to manage yourself financially.
The problem is that the influencer space is people who are 6 figure earners thinking they are spending like 7 figure earners, but are actually spending like someone who makes 8 figures. Going from making 5 figures to 7 figures just means you have more you can save and invest. You really shouldn't increase your lifestyle too much.
I’m definitely a victim. Just graduated college, got a very high paying job, yet I have less money than I did all throughout college. Definitely doing a whole re-build of my budget and sticking to it strictly
The not knowing where the money's going is wild. I look at it like this; it's MY money and I have to know where it is at all times. It won't go anywhere I don't want it and it will go where I want when I want it to.
Funnily enough i have this problem going from having $2k for a year and then having $10k for the whole year and food stamps. Barely knew how to handle living on slightly more money 😂
@@pinkdonut26 i lived with three roommates and paid $500 for rent and utility and used public transportation, just moved back in with my parents but still paying $500 for rent 😭 just getting by atm
Live humbly, tithe, and give. Also I was terrible at math growing up so the only way I was able to get my math credits to graduate high school was to take a math of finance class. BEST CLASS EVER. Like seriously, it taught me how to handle my money, expenses, get out of debt, stay out debt, savings, investment, and even morals. Maybe the most useful class I had in high school besides creative writing.
Apparently Amberlynn Reid was also pulling in $10k/month somehow a couple years ago and she just pissed it all away on plastic earrings, fast food, journals and $1k Torrid hauls
With helping others, I saw this a lot with a homeless friend. Someone needs money for their car and he gives it to them. And then he doesn’t have any money for food or rent. I told him not to give it to them, and he called me cold. He didn’t understand that he for real couldn’t afford to help them.
I see something similar in this town I live in. You see all these seemingly poor people who can barely afford their daily expenses… but then they have multiple properties, a huge new truck, and a new phone every year?? They spend all their money on these huge expenses and then are so broke all the time. And this isn’t a new money thing where I live, it’s the local culture. There are families here with tremendous generational wealth because their family founded the city 500 years ago. Some of these families own entire neighborhoods… but then they might struggle to pay their monthly bills. It’s very curious to me as someone who does not have generational wealth or any properties (yet).
U are right there is more to it. This is typical in the Entertainment Industry. Like they used to say: If U ever win the Lottery; take your phone off the hook. I guess it's the same in the Lottery of Life. Great video.
i couldn't search your video anywhere, it never showed up, AND i started watching your video and then had to do log off real quick, however, your video didnt show up ANYWHERE in my history on youtube. youtube is like.. blacklisting you
Budgeting is actually really freeing for me. I use YNAB but there are lots of good tools. The best part is knowing that when I pay for a vacation or new camera or something, I know that my bills are paid and my savings are payed and I can well and truly afford the splurge. Plus when I go over budget, I have to backfill the overspent budget catagory. Spent too much on dining out? Okay well I’m not gonna pull that money from the mortgage bucket. Instead I pull it from my vacation bucket. And that makes the consequences of going off budget obvious
I grew up poor, when I would go to friend’s houses I would dream of living in a big house. Now as an adult who is making good money and owns a big home, I realize at the end of the day I could loose all of this but as long as I have my family that is really all that matters. A house is nice but it’s nothing compared to the love and memories you share with people around you. I didn’t have money growing up but my household was full of love. I hope to teach my children that money, status, things really don’t matter as long as you are safe and happy and have friends and family, that is all that matters.
I don't budget, but I have a separate account for spending and when the monthly transfers don't cover it I know I increased my cost of living somewhere.
I grew up in a family with a disabled father. our money situation has always been awful, my father only gets $800 a month and that hasn’t changed in over 10 years and my mom can’t make more then that or they will count it against my fathers money and then take his away. Same for me cause I still live at home I will never know a life without struggle due to how the systems work against the poor and even more so against the poor and disabled cause I myself will more then likely end up disabled like my father
Thank you for your content. You know, I created a channel a few years ago but I guess I was just joining a wave of overconsumption. I intent to transform the channel now and make it more suitable for former professionals who are now some makers. Whenever I watch your videos, a flow of ideas come to my mind into how should I adapt this content to the Mexican market. Thanks again! I'll keep on watching! 🎉
I don't agree with you. A person making 10 $ an hour can't be good with money, as being good with money requires a financial basis that covers your cost of living. You can't choose to spend as litte as you want, just as you can't choose to spend as much as you want. To live a relatively stable an healthy life, you need a lot of money. Telling people that you don't need much is a lie and it has always been one. 1. The food you eat determines how healthy you are in the longrun.Poor people eat what they can afford, which is usually not healthy. 2. Proper housing is expensive.Wether you rent or buy, you always pay. 3. Health care is expensive, even if you don't recognize it. Not only are you paying your insurance, you have to be prepared to foot some bills yourself. And don't even get me started with dental expenses. Some people will tell you, that good dental hygiene will save you from these expenses. It delays the problem, but sooner or later you're in for an unwanted surprise. 4. Your education isn't cheap. No matter what you do, substantial learning comes with a price-tag. 5. Travelling should be part of your plan. It's expensive. 6.If you want to raise a family, say hello to a lot of bills. 7. For all pet- lovers: it's an expensive hobby. So, to sum it up : you can learn to handle money, to earn it, to save it, to invest it, there's still no way you're not going to have to spend it. Many people barely make enough to survive, let alone can they cover unexpected expenses. You need a lot of money to live a cost- effektive life. Poor people always pay more than rich folk.
I know there’s so many topics you could cover but would you consider a video on what this is like for people coming out of some level of poverty? It’s hard to know what’s worth it to improve quality of life and what’s lifestyle inflation. I’ve made some mistakes with this and find it hard to prioritise. I can actually make some long term savings for the first time but it’s also the first time I can afford to make certain things easier for myself (which matters with chronic illness) or buy things that are higher quality or just better suited to my preferences
I think one in three lottery winner make sense because most people actively playing lotteries are obsessed with money and play the lottery for that reason so it definitely is not the average person
From my understanding is that NFL players only make money for the season. Soo.. having said that they need to stretch their money or budget, or take on a second job until football season.
I’m sorry I just can’t imagine making 5 figures in a month and not thinking “maybe I should save some of this” How do you get $400 million in debt? Just stop buying things you don’t need this is absolutely insane
Plus when you're a celeb, people *expect* you to have a certain lifestyle, live in a certain type of house, etc. You're surrounded by friends and a social circle where people, who may or may not have as much money as you, do spend freely and have a more privilieged lifestyle. Adam Sandler and Mr Zuck are gonna stay rich forever simply by cutting down on clothing costs. Noone expects either of them to roll up in designer clothes and the fanciest cars
There is a channel I used to watch on TH-cam and they got pretty big and where getting really good views on their videos and they kept going on these really expensive vacations and it stopped being fun to watch and last I checked their views where way down and they were doing sponsorships that they never had to before. Not sure what they are going to do now
A THIRD of lottery winners? Would they have been safer taking the monthly installments then? In the UK we don't pay income tax on lottery wins so those monthly installments weren't offered, but there is a "Set For Life" competition where you can win £10,000 a month for 30 years.😢
This is by no means being rich but I know when I graduated high school I got $2000 in graduation money and id never had that much money in my LIFE. So I spent it without even thinking about how it was dwindling. I blew through it in 8 months with no bills or expenses. Important lesson for me to learn luckily at a time where I had no expenses
I am curious what are some examples of someone being bad with money at $10 a hours? That amount can not serve basic needs in most most American states.
I'm so happy famous people are running out of money lol. I don't feel bad in the slightest because I'm working with $641 a month. You give me a million dollars ONCE I will never work a day in my life again, you give me a million on repeat then I'm doing everything possible to help others. This is where greed gets you.
In your 20s, start buying government bonds they take 15 years to mature, so your 50 a week is automatically 100 at age. However, by the time you're 40, you can cash our or reinvest into bank or government bonds again that $50 has turned into about 350. In that case I would buy 250 and a 100 bond for my 60s. So what was 50 a week by retirement will after its 2nd cycle you now get 700 face value + interest a week.
Instead of lifestyle inflation, go for security inflation. Pay off your credit card debt. Pay off your house more. Don't have a home? Invest more every month. I have a well paying IT job and I don't even have a car, and I think I'm happier for it because I cycle everyday and exercise is proven to be good for your mental health.
The first 500 people to use my link will get a 1 month free trial of Skillshare" skl.sh/caranicole01241
Thanks for watching!!
Nice sweater- an xmas gift? You left out one trap that has ruined many mid-level celebs. Substance addiction has ruined many lives both famous or not. Part of true wealth is having other people who will be there for you when life goes wrong. Their job is not to fix you; much if that comes from within one day, hour at a time. Others can support (not enable) through a place to sleep, food, encouragement and perhaps through firm caring (tough love) help the addict reach a realization the addict has a problem - hit bottom.
When the movie goes bust, one’s investment goes south (your widget patent expires or is the passé fad), etc. and one has an addiction problem are there people who will be there for you (have your back)? Too much of an entourage will become “hey, where’d everyone go” when the $$ are gone. It’s a matter of “paying it forward” and deep personal connections (this is why “kin” is so important in many cultures). It’s a matter of if asking yourself not only “are there people with whom I would share my last cracker or pizza” but also “are there people who are certain I will do so for them.”
What I think and it also in my culture too is that we see superiority when one has more money than others. However I believe it may be in other societies as well. I have a bad habit of spending on things that clutter the house and it stirs up anxiety. I am retraining myself to avoid that. Though it’s hard because my situation has gotten bad over the years and it gotten to a point where I’ll have to use a gift card to buy what I can. I get influenced so easily that I don’t watch my own status.
U will learn it @@kidkat0531
Everyone has seen 100 ads for this
Brittany broski worked at a bank pre-influencer career, so that's probably where her money smarts come from
that and from the house her family is living in, it seems like they were at least middle class and moved into upper middle. she was probably given solid advice and its really helping her out! but thats just my own theory, idk if shes ever talked about how much money her family has made 🤷♀️
She’s just a generally smart person. I bet she’d still be money smart if she hadn’t worked at a bank.
She’s smart and humble- this combination means she was probably able to find a good financial advisor worth trusting, and actually listen to what they say
All those money administration knowledge are also on TH-cam
We stan brittany
Emma Chamberlin proudly proclaiming she doesn't know how much money she has....ok girl lmao. "People are gonna say this is irresponsible" because it IS. A lot of the people getting robbed by their money managers have been robbed by family members that they pay WELL. It's never enough money when they know how much you have and how little you care. Sincerely hope she stops that immediately before she gets left ass out.
It's so sad hear that but that's the truth. Very wise words!
Yeah, she needs to look at her own accounts and keep herself educated.
You don’t sound like you genuinely care that you just want to be mean 😅
Her Mom watches / handles her account. She trusts her mom.
@@tonijackson3421 not sure what exactly gave you that impression. If I just wanted to be mean I could have insulted her and left it at that. I can’t control what tone you read something in but try reading it again in a different one and maybe you’ll think differently. I could say the same thing about your comment, couldn’t I?
Just because you have a lot of money does not mean you know how to use a lot of money. Good money management isnt about intelligence or talent, it is about discipline, self awareness, values, and listening to people (like Cara!) who know more than you.
That is on so accurate!!! I agree witht he use of money and I would add that investing money on long term projects ( not only in trading but in objects that will last a lifetime) is something that we , as consumers, should focus more on.
… the last part is a no no, 😅 it IS about intelligence and no you shouldn’t just listen to other people when you could learn and have the INTELLIGENCE instead of listening to a random stranger with a degree and getting scammed. What a kiss a$$ comment
She literally said that but ok 😂
Lifestyle inflation is so real. You think you're treating yourself and sometimes end up trapping yourself. My biggest struggle as a freelancer is when clients end a contract abruptly. It feels like if i charge super high, it's harder to book clients. However, if i charge moderately (not low) it feels like I'm living paycheck to paycheck or at minimum wage because of how taxes are set up. Le sigh
Keep charging high.
So real...
Lifestyle creep is so real. And it's not always about having a nicer house or nicer cars. When you make more money, you suddenly feel that you DESERVE BETTER. And I think part of that is valid, but most people don't stop at just a safer, nicer place to live or a slightly nicer car. They start spending more on clothes, handbags, shoes, going out, more expensive vacations. It is never just one thing. How you handle your finances when you start getting a higher salary, is also a good litmus test on how you'd act if you won the lottery. Most people THINK they'd be smart with money, but if you're being bad with money with a 20K salary increase, chances are you won't be smart with a 3000% salary increase.
One area of lifestyle creep that isn't exactly bad, just not well discussed, is people coming out of poverty. For a long time, I was freaking out because my finances weren't increasing as quickly as I wanted them to because there was just so much to replace. I had shoes with holes in them, my clothing was worn threadbare, my mattress was dented since I'd bought it second hand, and I hadn't been to a dentist in four years. I was worried about lifestyle creep before realising that the costs I was paying were just normal parts of life that I was catching up with. Once those things were paid, I was able to start saving money much more quickly. I know these are different situations, but I do think it's an area people forget about when they ask why someone with a new job isn't immediately starting to save money.
@@sebastianmaker6798that is a good point, you should definitely invest in your health, get all the regular check ups that you should be getting. Buy a better quality mattress, as it also has a big impact on your health and quality of life. But people get conned by sales people, that includes the dentist that will try to sell you work that is not necessary. It is nice to have nice things, we all like it, but we all need to think long and hard on how it's actually going to improve your life.
On top of that, we can add the insidious, "natural" lifestyle creep: not the one you create by buying more things and/or more expensive things, but simply the one that comes from inflation + getting older (= not getting young people discounts anymore)... E.g. when I think back to how little money I spent when I was a student, compared to getting the same things now, it's scary. Public transportation is more expensive + obviously I can't claim any 12-25 discounts anymore. Same with restaurants/shops that give an age-based discount. Same with health insurance and insurance in general. Etc etc.
Not complaining because typically, as a student, you don't have much means so these discounts are lifesavers, and I totally get that. The point is that, when you factor in this "loss" along with inflation, we're already experiencing a baseline lifestyle creep. All these things just cost more overall, and "living below your means" is more something imposed upon us than a choice that makes much of a difference. For instance, sure, I can opt for cheaper food brands; but they still are more expensive now than what their equivalent from 20 years ago would have been, compared to what I would have earned. So unless I stop eating altogether, my margin of maneuver isn't _that_ big... :(
Dude yes, I got a pay increase when I got a new job and I still try to spend just the same amount as I did before. My bills didn't increase so why should my spending?
No part of that statement is valid. People that have money don’t DESERVE better than other people. Do you even realise what you are implying here?
They can afford better but they definitely do not deserve better than any other human being. That’s an insane thing to say. Seriously.
I know doctors and lawyers who make a lot, but live paycheck to paycheck. The entire concept of living below your means is foreign to some people unfortunately. There’s a reason we have record high levels of debt, credit card, personal loans, car notes, mortgages…
Those jobs also have very high student loans where they have to pay thousands a month in student loans
I hate "live below your means
@@k4nd1incyb3rsp4c3that’s true, it’s expensive to be poor :(
SO HOW ARE PEOPLE SUPPOSED TO LIVE BELOW THEIR MEANS WHEN THEY WORK FULL-TIME AND ARE STILL BARELY SCRAPING BY.
At least they r living good life as long as they can maintain it😊
I think the other issue is that a lot of influencers don’t understand the tax side of being self employed. Like, that can be pretty complicated, and given how young and inexperienced some of these folks are when they make it big, it can be easy to trip up there.
i think it was a interview Britany did with Trixie Mattle, where she talks about prior to going viral, she worked at a bank, so it makes sense she's a lot smarter about her large influx of money now with her banking background
I think if people who had no money get into money they become better at spending it because one, they DON'T wanna struggle again, but also they know what to do and not to do. This is why I don't trust financial advice from billionaires.
She’s just a generally smart person. I bet she’d still be money smart if she hadn’t worked at a bank.
@@vvitch-mist20not necessarily. Money is often equal to education so having no money correlates to not being financially educated. Having then a large influx of money when you had nothing makes you want to experience it all but without knowing all the investments you can do or doing bad ones etc, therefore burning thru your income
Look at the recent issue of Mary Lou Rhetton, former Olympic gymnast who has to do a gofundme because she has no health insurance even though she makes $25,000 a speech. Or look at Kate from John and Kate who had to sell her house and go back to nursing because she blew through all the money. I think that’s what’s so dangerous about our reality tv/influencer/athlete culture in that you have a lot of average people thrust into wealth and limelight and then thrown away at a moments notice - unprepared for life after all the attention.
I had no idea about Kate! That's sad!
The Mary Lou Rhetton thing is ridiculous when you look into it. She is a Christian fundamentalist who got scammed by a Christian pseudo-insurance
Yess, they get a massive lifestyle inflation as if they were expecting to keep making that kind of income indefinetely, not planning for the future.
More than that. She lies in a 6M house and her grifter daughters stole money from poor people to pay for her care because she REFUSED to get insurance and publicly denounced Obamacare or any state exchanges. Sorry, no excuses for their terrible behavior.@@rosesweetcharlotte
@@tigerslillyjust wait until you hear about what she did to the one son
Schools should have a mandatory curriculum at senior year on finance. How to pay bills, file a w2, invest, where to buy stocks and not some sketchy place, etc
*Ik schools teach it for like a day or week but that’s too short. It’s needs to be an all year class that’s mandatory in 12th.
the same people sleeping thru history class will sleep thru personal finance class. People will whine "I wAs NeVeR tAuGhT" but the info is out there at their fingertips. They have to want to learn it. And if you don't believe me, watch Caleb Hammer's repeat guest episodes
@@yippeeioh sure bot, everyone remembers what was taught in school even if it was taught for a day or week. 🙄😂🤡
Pretty sure I lot of schools have that, I did, but it’s pretty useless when most kids have a super part time job and don’t make enough to pay taxes on so they don’t get a chance to practice until well into college
@@thebivocals3754 yea, a days learning on it I’ll surely remember
@@Michaelengelmannmy school has a personal finance class that lasts a semester and nobody wants to learn in favor of having more AP classes in things like calculus or biology because it looks better on college applications sadly
I thought about this when Drew Gooden made his car video about 4 days ago. He drove a ~2012 honda civic or something for many years and just got a new used Hyundai sedan. that stood out to me as impressive, he is smart with his money. most of the influencers that live in LA and follow our consumerism culture will most likely lose their wealth
love Drew Gooden! maybe parasocial of me to say, but he definitely seems like someone who would be smart with their money and not go overboard with spending
From what Cardi B said I suspect the only difference now might be in the units she does the auditing. Once she probably tracked down to the quarter or dollar level. Now thousands could be the unit of accounting. Or perhaps lower. But IMO Cardi B knows it is HER money and she alone must take responsibility.
Otherwise, “easy come, easy go” that became “live fast, go broke, (busk) and die young” could be your obituary.
Yeah, seems like Cardi B has things set up so she can easily check these things. And she seems to have a base-line idea about how much things should cost.
A lot of these ppl grew up poor and think "flexing" is part of being rich. Their parents never had enough money to teach them how to budget. I always think of trixie and katya. Trixie grew up in a trailer and is constantly namedropping and opening new businesses. Katya grew up middle class and seems to be way more reserved in her spending.
I kind of disagree on this one… Trixie opens a lot of new business but doesn`t seem to actually spend a lot, she talked about it in one of her recent TH-cam videos. We see her spend a lot in wigs/clothes etc but it IS an investment at the end of the day, even her Barbie collection could be considered an investment.
There is no correlation. Rich people also flex and end up going broke, showing off is a common phenomenon, anyone spending beyond their means will go broke.
@@gabrielavieira4670Trixie also financially supports her family too. And for her wigs, she usually hires her friends too. Idk if she comes off as too much of a “flexing” kind of person because I can think of drag queens who are worse.
Trixie is one of the few millionaire drag queens and is renown for her work ethic. The fact she specifically branches out so much is wise bc she can fall back and any one of those ventures.
Most other queens are obsessed with the “rich woman fantasy” and spend as though they are which is truly dumb …
as for Katya , she said herself that Trixie is the true rich one and it just so happens that I encountered two confessions she’s made about spending /investing in things that made no money (her custom pink leather suit and the dentist immersion experience video )
Nouveau Riche
Im a broke university student who doesn’t make enough money so I just avoid keeping tabs to budget. However, I look at my accounts regularly and try to keep up with payments. It’s just scary to get in the nitty gritty of things 😢
What was your major?
@@pinkdonut26 Social Work Undergrad
I don’t keep enough tabs on my finances because I’m struggling and it makes me extremely stressed. It’s a vicious cycle
Watch Caleb Hammer’s financial audit videos and start learning now… hopefully you will get less anxious as you learn. ❤️ good luck friend, I know it’s tough.
You should watch Ramit Sethi's channel. He shows you how getting into the "nitty gritty" is actually super easy and not as scary as you think. He's such a gift in the world of personal finance imo
I think the younger you are when you get rich, the less you can handle it. Yes, there are older lottery winners that did the same, but someone becoming a big influencer in their 30s will handle any income very differently than someone in their teens. And a lot of athletes and younger actors have been told over and over and over again by their managers and parents to let *them* handle everything and focus on their career. I don't think we can fault them for believing their parents, we can just fault them for *continuing* to do so well into their adult lives.
I agree. I remember my mom telling me years ago that if she had a large sum of money, she wouldn't leave it to her kids until they were at least in their 30s, possibly even 40s. I remember thinking that sounded dumb, but she explained how younger people don't make best decisions when it comes to money. Now that I'm older, I totally understand and she was right
Yeah I see a lot of young influencers that get rich at like 18 say “idk how much money I have”. Compared to people getting rich in their late twenties or thirties, where they already have had to go through either not having money, or just learning how to be responsible with it in general.
Agreed, some of it is maturity.
this sort of topic puts a lot in perspective, wealth can be divorced from how much you make when you spend recklessly and live paycheck to paycheck
A personal finance courses should be required for every American to take before they graduate high school, especially in the junior/senior years, and again in college/university. I took a one- semester course in high school, and I always wished it was a longer course because it was so informative.
The best thing I do is keep a close eye on my bank account, and will certainly work on a setting a weekly/monthly budget to reach some saving goals I have.
Been a fan of your channel for a while, great work!
The problem with offering those courses is that personal finance is not difficult to understand. You do not need a professor with a PhD to teach you that. You need the discipline to look into it and learn it yourself and that cannot be tought in a classroom
@@ANTREU96true but people trying to learn about personal finance online today are gonna be hit with so much misinformation from scammers. And if you’re starting from 0 it’s really hard to separate good info from bad
@@aeronautique7690 Mhh I guess you are right
My personal finance class in highschool was required…but unfortunately chalk FULL of Dave Ramsey
the same people sleeping thru history class will sleep thru personal finance class. People will whine "I wAs NeVeR tAuGhT" but the info is out there at their fingertips. They have to want to learn it and want to change And if you don't believe me, watch Caleb Hammer's repeat guest episodes, where they have all the personalized resources and they still spend like no tomorrow.
If I won the lottery or something I would buy a modest house and new but not lavish cars and throw the rest in the bank. I'd keep working, and try to continue to live off my income as much as possible. Without a mortgage or car payments I would be doing pretty well financially! Man that would be great. I can't imagine blowing it all on fancy stuff. I am just happy if I own a home and a good car.
Me too! My husband and I discussed it. We would have a decent but not ridiculous house paid off. Paid off cars, keep our jobs and invest the rest. Then just take 2-3 months paid/unpaid leave a year to travel somewhere (our jobs are flexible like that, we get 4 weeks paid per year but can take unpaid leave up to a year).
I always say the first thing I’d do is give half of the wealth to my parents! They’ve had a lifetime of managing money and taking care of their needs now means that snowballing medical bills later will be less devastating for all of us down the line 😅
Having a home, a car, and being able to afford nice groceries every week? The dream. Not expensive cars and gold jewelry, just basic comfort.
That’s not really the reason most of them go broke. It’s the fact that they attract bad luck. You could do all of this right and still end up dead, bankrupt, or in prison because it gives you a celebrity target within your community.
@@andpeg LMFAO bad luck? The bad luck of buying luxury cars, mansions, designer clothes, etc.? Yeah ok
Honestly, all of these highlights are on point and apply to all of us. I’ll never make influencer or celebrity money and I’m okay with that. What I’m not okay with is a lack of responsibility and due diligence that my daughter expects and deserves from me. Giving her our wealth isn’t setting her up for success in her future. Teaching her how to make, manage and understand money as a tool is much more valuable and lasting in the long term.
If anything, just giving children your wealth is setting them up for failure. It's like giving the car keys to a kid who has never been behind the wheel before.
@@jh26pt2 now go read literally any real study on reproduction of poverty
no they dont. people who barely scrap by while working dont need to be told to "live below their means". these are first world problems
Very good points made! As someone who started youtube fulltime on a SHOESTRING budget, but has thankfully gotten to a place where I'm much more comfortable 5 years later, I still remind myself that there's no guarantees of how things are going to go down the line. So while I am certainly spending more on my expenses than I was before (no more horrible hostels for me! lol), I still am working on a reasonable budget that allows me to put quite a bit away. This is an important lesson for anyone running their own business, no guarantees of long term success, but having a nest egg will definitely help you through any rough patches or if you need to pivot to another career. Great video!
The HGTV show My Lottery Dreamhome is fascinating because the ads are very like MTV Cribs-coded and actually watching it, it’s mostly like blue collar workers who’ve only ever rented buying a typical suburban home after they win the lottery.
I love this show, it's so wholesome to watch people being able to come into their own or provide better for their family, and David (the host) is so sweet. I think it's also good because he listens to their needs and then gives them a range of options, so they're not necessarily needing to spend all of their winnings.
100 dollars or a million: it's a lot easier to spend money then it is to earn it. And yeah, having a lot of money doesn't mean you have the brains to work with it.
Say what you'd like about Cardi- Trust me, I'm not a major fan- but, she has said it multiple times- "A lot of ya'll would be broke if ya'll made it where I'm at because when I talk budget, ya'll talk down on me!" Twitter. She was talking about this during the pandemic and how the groceries were slowly increasing and then rapidly, her budget in groceries, nearly DOUBLED. She goes into greater detail and then even shared how stocked her house must be with Cereal. Hubby at the time is addicted to cereal. IDK if they're still together after the recent cheating scandal.
What’s with the “Trust me, I’m not a major fan” lol
Like that even matters
Hi Cara, I would love to see a video on a topic I think about a lot these days: being frugal vs being cheap. I often find myself wanting to buy the cheapest option and then realising it likely won’t be an ethical/sustainable option. How do you know the right amount to pay for things?
Cara's delivery in itself is ASMR. Thanks for the pleasant voice and not yelling at us like most TH-camrs
I'm a student, so I cannot save a lot of money that I get from my parents or my grant. Recently my living costs have reduced, because I've moved in with my boyfriend and now I pay less rent. I've already caught myself thinking how I have more money to spend now when I should actually continue living like I did and save up the money I have left at the end of the month. Thanks for the video, helps keeping me on track and reminds me of my financial goals.
Your video made me think. I currently make more money than I actually need per month and all I know is that I spend way less than I make. Maybe I should keep track of my spendings more carefully! I'm not buying expensive things that I don't need or follow any trends, and recently began to think more about things that I spend money on, but now I realise it's not enough
Ngl, I clicked because I saw Brittany in the thumbnail and I was worried for a minute 😅
My friend told me I make money as a professional but live like a grad student. I save and invest about 2/3 of my paycheck. I have a 5 year old car which I didn't have to finance and my fun is my motorcycle that gets 80 mpg. I also go out 2-3 nights a week swing/blues dancing which doesn't cost much and take care of my exercise and socializing. Make life simple.
You covered the main pitfalls. Lifestyle inflation & celebrity comes with the pitfall of an entourage as in “my people will call your people” saying. First think in terms of “my employees” in that once the $ stop rolling in will they be there tomorrow? Just look at many celebs for whom many profiles list an agent, manager, publicist, personal trainer, stylist, …. In today’s direct to followers social media environs, not all these need nit be the norm. But with a larger income and assets comes a class of highly paid professionals that remain vital: tax pros and IP & corporate attorneys. The taxing authorities come after the person(s) who sign the returns or to whom the income is imputed.
With lifestyle inflation comes inflation in expenses. The upkeep, maintenance, and RE taxes of a 10 bed, 20 (i perhaps exaggerate) 20 bath, 20,000 sq ft mansion could be over 3x a much more modest house. (These days one has several one needs someone to occupy each one to avoid a “vacant property” designation and squatters.) And then there’s liquidity. One often sees multi-million mega mansions of celebs not selling for years. Ask your self does the 7th bedroom keep one warm and dry any better than the second? Having several more modest houses means one has one which is more likely in a price range that others can afford. Nothing is a harder sell than a custom mega mansion.
The late gr8 (LGR8) Michael Jackson is instructive. MJ may have been 100s of millions in debt when he passed but did his estate close out in bankruptcy discharge? I don’t know but the estates of LGR8 Prince (Rogers Nelson) or Elvis (Presley) are still in business (Graceland & Paisley Park). So as a content creator as oneself will my products or IP have some form of staying power. Copyrights last 70 years after death and an associated Trademark can last longer as long as it is actively used in commerce (and vigorously defended). Steamboat Willy film clip may be in the public domain but MICKY MOUSE is still an active TM. Ask oneself, will my core fanbase be with me even three years from now? Can I adapt & evolve (will we grow old together) or reinvent myself? In today’s “ fast fashion” “fad fulfillment” world I suspect the path of “legacy legends” who can sell their catalogs for $100s millions may have passed. (& ask who owns my catalog?) If your IP likely is worth tomorrow what a fast fashion item is worth 10 hours after delivery one needs to plan and save. Otherwise your future may be busking as I was once famous. In the reinvention, second act world “many will enter, few will win.”
Cara, you bring the CALM into my life. Your voice, editing and gentle yet affirmative script is perfect. Keep it up 👏
Thank you so much! I really appreciate it :)
I can't believe that many people don't bother budgeting! I've always worked with a budget my entire life. Probably to do with the fact I grew up in a poor household with little money but even now when I'm earning good money we budget so we don't end up in financial trouble! That would stress me out so much
As always, great video essay. You might have done something similar in the past but it may be worthwhile to revisit. The idea of wishful buying. For ex, buying workout equipment with the intention of working out, only to have it gather dust. Or buying pants a size smaller in the hopes you'd lose weight but you never do. Sadly, I've been guilty of a thing or two, lol. Maybe some popular wishful products, from workout stuff, to smoothie makers to running shoes.
ooh that's a great idea! I don't think I've covered wishful buying yet, thank you!
I agree with your sentiment for the most part but you can't make a smoothie without a blender and you can't go running or workout without proper shoes. But you can always thrift them or get them second hand until you use it enough to justify getting it brand new :) this is what I do and it works like a charm.
Tbf I don't feel bad for them. Some of these people managed to spend in a few years what I'll make in a lifetime
I love so much the value you bring with each video. They're so educational!!
thank you so much!! I'm so glad to hear that!
i love this channel & i forward your videos to my adult children quite often.
i stressed financial literacy throughout their childhood starting with giving them a "budget" for things like school clothes and book fairs.
i also incentivized reading books like the millionaire nextdoor. my kids applied for low-limit credit cards once they had high school jobs, which i taught them to pay in full monthly. they also opened Roth IRA's as youngsters and started paying themselves first in their index funds by small but steady automated deposits. i regularly showed them the balance on their 529 college funds so they could see the wisdom of front loading investing & the returns in compound interest.
i got a lot of things wrong as a parent, but i think i nailed their financial literacy skills
That generosity one hit way too close to home. I always put others’ needs above my own, so even though I earn good money I always end up living paycheck to paycheck because of my generosity
It’s not celebrities - everyone has a money problem, the celebs problems are just higher profile. Most people grow up thinking that money has one use: you spend it to get things you want. The more you have, the more you can spend. Until you work out that it’s a resource that can be used to make more money, you’re going to have money problems.
Very interesting to see you know about Caleb Hammer, would love to see you on his show and I think your more emotional approach to finances would be fun and insightful to people who might not know you.
The Celebrity Money Problem can be solved by:
1: Hiring a financial advisor
2: Track your spending on a spreadsheet or App
3: After paying off debt, save 20% or more of your earnings
I think that unless you were born with money, and raised how to manage it, it's close to impossible to keep it, especially if you "got rich quick"
It’s a big assumption that parents are even looking at food labels before giving food to their kids, there is this mindset that it’s “someone else’s” responsibility to monitor what’s safe / not safe in goods, this idea that just bc the FDA approves food it’s safe to eat, which we know is false but so many people think that way & that mindset transcends into skincare products. It would be nice if they take more personal responsibility in learning what their children use but I doubt it’s going to happen. It would be just as simple to tell the child “no you’re not gonna get that not matter how much you want it bc it’s not appropriate for your age group” but they don’t do that either.
Hey Cara, would you consider making a video on how to deal with a huge influx in money? I am personally expecting to have a huge increase in money because I’ll be getting my first real job. I’ll be going from having to be thrifty with necessities to having a good chunk of disposable income. And while I don’t want to fall victim to lifestyle inflation, I also don’t want to continue living in poverty because all my money is in the bank or in investments. I might actually make the switch from surviving to living and I’m very excited but also nervous. This’ll be the first time I get to actually choose what to do with my money instead of using all of it on rent, bills and groceries. So yeah very excited. Your videos helped me a lot already. If you don’t feel like doing a video on this, I understand completely. I know you probably have your own schedule and video idea and all of that. It was merely a suggestion in case you like the idea. Again thank you so much for your content, I really appreciate it
I really think you'll do great, because you already have the right mindset. It's just a matter of figuring out how much you want to put towards spending vs. saving/investing.
My (completely unsolicited!) advice is: pay off debts first (if you have any). You'll be amazed at how much easier you'll breathe without a car payment, three credit card payments, a student loan payment, etc. each month. Then put some towards saving, some towards investing, and some towards living, and balance it so that you are doing some of each. Also, recognize that you probably will make some mistakes along the way - we all do - that's called life. Just keep your eyes open and learn from the ones you do make. You're gonna do great.
Your work will probably have someone there who can go over retirement options with you. Those guys usually will give you some options for budgeting too. And don't feel bad about consulting professionals outside your job
WHat could also help is increasing your spending money slowly. If you have a baseline for how much money you need to take care of basic necessities, like you seem to, then you can see how you do with an additional 100 or 200 of "allowance" and keep the rest in the bank at first.
Congrats on your first career job! Quick tip -- Always get that 401K match if your company offers it. It's free money. Also, a good suggestion is to automatically up your savings when your pay goes up either via raise or a new job.
My advice is to set up a budget and have all your expenses laid out on a spread sheet or in the notes app. You can give yourself a set amount each month to spend on non essentials like eating out, cute clothes, fun experiences etc. just make sure you stick to the set amount within the budget
Part of me thinks that if I became suddenly rich I would be GREAT with my money, but another part of me thinks I would be an idiot about it like a lot of people. I main issue would just be awareness and still being VERY careful with spending like I am now.
it is absolutely also something to say about consumerism and the whole “I need to reward myself” mentality. If you don’t have any money to spend, why are you buying yourself a coffee as a “sweet treat” every day 💀
Such an interesting topic something that really needs to be discussed more often! Wonderfully explained love the content !!
Due to my consistent budgeting and saving, I had to buy a ticket for a flight after my first way cheaper one was cancelled. I did it without any issues and knew I was still way within my travel budget.
The fact I heard people panicking around me because they didn't have the money to rebook broke my heart
This is maybe an exaggerated example, but i see people in the Forbes billionaires list come and go in the spam of less than a year, lots of them broke... Then nothing in terms of money is secure unless you learn how to manage properly within your means.
The fact that ppl “hit it big” (whether the lottery, fame, inheritance, and the rare occasion of actually working hard lol) and immediately thinks that means they have to spend big is the problem. People start over consuming everything from homes, cars, clothes, luxury goods, vacations, property, etc. and they never stop to think “do I really need or even want this shit?” Buying 6 luxury cars is overconsumption. Buying a $6M home is overconsumption. Going on multiple million dollar vacations a year, is overconsumption.
It's never about how much you can earn but all about how much you can save. Some of them just have no awareness about how important it is to manage yourself financially.
The problem is that the influencer space is people who are 6 figure earners thinking they are spending like 7 figure earners, but are actually spending like someone who makes 8 figures. Going from making 5 figures to 7 figures just means you have more you can save and invest. You really shouldn't increase your lifestyle too much.
I’m definitely a victim. Just graduated college, got a very high paying job, yet I have less money than I did all throughout college. Definitely doing a whole re-build of my budget and sticking to it strictly
The not knowing where the money's going is wild. I look at it like this; it's MY money and I have to know where it is at all times. It won't go anywhere I don't want it and it will go where I want when I want it to.
Let's not forget that basically everything that Boogie says is a lie, even though the problem is real.
Funnily enough i have this problem going from having $2k for a year and then having $10k for the whole year and food stamps. Barely knew how to handle living on slightly more money 😂
$10k for the whole year? How do you even pay for rent/mortgage with that??
@@pinkdonut26 i lived with three roommates and paid $500 for rent and utility and used public transportation, just moved back in with my parents but still paying $500 for rent 😭 just getting by atm
Live humbly, tithe, and give. Also I was terrible at math growing up so the only way I was able to get my math credits to graduate high school was to take a math of finance class. BEST CLASS EVER. Like seriously, it taught me how to handle my money, expenses, get out of debt, stay out debt, savings, investment, and even morals. Maybe the most useful class I had in high school besides creative writing.
Apparently Amberlynn Reid was also pulling in $10k/month somehow a couple years ago and she just pissed it all away on plastic earrings, fast food, journals and $1k Torrid hauls
With helping others, I saw this a lot with a homeless friend. Someone needs money for their car and he gives it to them. And then he doesn’t have any money for food or rent. I told him not to give it to them, and he called me cold. He didn’t understand that he for real couldn’t afford to help them.
We was talking about this at church (just a conversation) but when you get a lump sum (ie my first tax refund) it looks unlimited.
I see something similar in this town I live in. You see all these seemingly poor people who can barely afford their daily expenses… but then they have multiple properties, a huge new truck, and a new phone every year?? They spend all their money on these huge expenses and then are so broke all the time. And this isn’t a new money thing where I live, it’s the local culture. There are families here with tremendous generational wealth because their family founded the city 500 years ago. Some of these families own entire neighborhoods… but then they might struggle to pay their monthly bills. It’s very curious to me as someone who does not have generational wealth or any properties (yet).
U are right there is more to it. This is typical in the Entertainment Industry. Like they used to say: If U ever win the Lottery; take your phone off the hook. I guess it's the same in the Lottery of Life. Great video.
Thank you so much for adding the helping other aspect. This is the part I struggle with with money.
i couldn't search your video anywhere, it never showed up, AND i started watching your video and then had to do log off real quick, however, your video didnt show up ANYWHERE in my history on youtube. youtube is like.. blacklisting you
I just hate when thay brag about shit
Budgeting is actually really freeing for me. I use YNAB but there are lots of good tools. The best part is knowing that when I pay for a vacation or new camera or something, I know that my bills are paid and my savings are payed and I can well and truly afford the splurge. Plus when I go over budget, I have to backfill the overspent budget catagory. Spent too much on dining out? Okay well I’m not gonna pull that money from the mortgage bucket. Instead I pull it from my vacation bucket. And that makes the consequences of going off budget obvious
I have no money and I’m extremely aware of it so no risk of being stolen from at least.
I grew up poor, when I would go to friend’s houses I would dream of living in a big house. Now as an adult who is making good money and owns a big home, I realize at the end of the day I could loose all of this but as long as I have my family that is really all that matters. A house is nice but it’s nothing compared to the love and memories you share with people around you. I didn’t have money growing up but my household was full of love. I hope to teach my children that money, status, things really don’t matter as long as you are safe and happy and have friends and family, that is all that matters.
The struggle is real! Whether you're a celeb or not, managing money is no joke.
I don't budget, but I have a separate account for spending and when the monthly transfers don't cover it I know I increased my cost of living somewhere.
This is such a great, insightful video and I feel like I can apply it to my own finances/it helped me see myself a bit more clearly. Love this tysm
Didn't Brittany Broski work for a bank? She would have seen all the bad financial decisions and the aftermaths.
I grew up in a family with a disabled father. our money situation has always been awful, my father only gets $800 a month and that hasn’t changed in over 10 years and my mom can’t make more then that or they will count it against my fathers money and then take his away. Same for me cause I still live at home I will never know a life without struggle due to how the systems work against the poor and even more so against the poor and disabled cause I myself will more then likely end up disabled like my father
Extremely random but the light ding in the background music is driving me insane 🤣
Huge fan of Caleb!! Love this personal finance crossover
Thank you for your content. You know, I created a channel a few years ago but I guess I was just joining a wave of overconsumption. I intent to transform the channel now and make it more suitable for former professionals who are now some makers. Whenever I watch your videos, a flow of ideas come to my mind into how should I adapt this content to the Mexican market. Thanks again! I'll keep on watching! 🎉
I don't agree with you. A person making 10 $ an hour can't be good with money, as being good with money requires a financial basis that covers your cost of living.
You can't choose to spend as litte as you want, just as you can't choose to spend as much as you want.
To live a relatively stable an healthy life, you need a lot of money.
Telling people that you don't need much is a lie and it has always been one.
1. The food you eat determines how healthy you are in the longrun.Poor people eat what they can afford, which is usually not healthy.
2. Proper housing is expensive.Wether you rent or buy, you always pay.
3. Health care is expensive, even if you don't recognize it. Not only are you paying your insurance, you have to be prepared to foot some bills yourself. And don't even get me started with dental expenses. Some people will tell you, that good dental hygiene will save you from these expenses. It delays the problem, but sooner or later you're in for an unwanted surprise.
4. Your education isn't cheap. No matter what you do, substantial learning comes with a price-tag.
5. Travelling should be part of your plan. It's expensive.
6.If you want to raise a family, say hello to a lot of bills.
7. For all pet- lovers: it's an expensive hobby.
So, to sum it up : you can learn to handle money, to earn it, to save it, to invest it, there's still no way you're not going to have to spend it.
Many people barely make enough to survive, let alone can they cover unexpected expenses.
You need a lot of money to live a cost- effektive life. Poor people always pay more than rich folk.
No one can budget themselves out of poverty 👏👏
I know there’s so many topics you could cover but would you consider a video on what this is like for people coming out of some level of poverty? It’s hard to know what’s worth it to improve quality of life and what’s lifestyle inflation. I’ve made some mistakes with this and find it hard to prioritise. I can actually make some long term savings for the first time but it’s also the first time I can afford to make certain things easier for myself (which matters with chronic illness) or buy things that are higher quality or just better suited to my preferences
Athletes don’t understand personal finance. Lot of them buy designer and pay high resell for clothing that will be out of style in a few years.
I saw broski, i clicked on the video. (I love these videos.)
I think one in three lottery winner make sense because most people actively playing lotteries are obsessed with money and play the lottery for that reason so it definitely is not the average person
From my understanding is that NFL players only make money for the season. Soo.. having said that they need to stretch their money or budget, or take on a second job until football season.
A bit disappointing that a video about being money smart is being sponsored by skillshare imo
I’m sorry I just can’t imagine making 5 figures in a month and not thinking “maybe I should save some of this”
How do you get $400 million in debt? Just stop buying things you don’t need this is absolutely insane
Plus when you're a celeb, people *expect* you to have a certain lifestyle, live in a certain type of house, etc. You're surrounded by friends and a social circle where people, who may or may not have as much money as you, do spend freely and have a more privilieged lifestyle.
Adam Sandler and Mr Zuck are gonna stay rich forever simply by cutting down on clothing costs. Noone expects either of them to roll up in designer clothes and the fanciest cars
There is a channel I used to watch on TH-cam and they got pretty big and where getting really good views on their videos and they kept going on these really expensive vacations and it stopped being fun to watch and last I checked their views where way down and they were doing sponsorships that they never had to before. Not sure what they are going to do now
Living by “you can’t spend money if you have money, you can only spend it if you earn money” really helps in my opinion.
Cara, you and Spencer Cornelia should do a collab on topics like this.
A THIRD of lottery winners?
Would they have been safer taking the monthly installments then?
In the UK we don't pay income tax on lottery wins so those monthly installments weren't offered, but there is a "Set For Life" competition where you can win £10,000 a month for 30 years.😢
I would say my favorite content creator is Ethan Klain. One funny dude. Shout out to H3H3
This is by no means being rich but I know when I graduated high school I got $2000 in graduation money and id never had that much money in my LIFE. So I spent it without even thinking about how it was dwindling. I blew through it in 8 months with no bills or expenses. Important lesson for me to learn luckily at a time where I had no expenses
Celebrities have a money management problem 🙁
I am curious what are some examples of someone being bad with money at $10 a hours? That amount can not serve basic needs in most most American states.
i would love if your videos were wayyy longer, i thought you were only just getting into the topic and then the video was over
ive never seen that kevin hart and rock interview clip😂😂he honestly took the words out of my mouth
Just found this page, wow thank you so much I needed this! Broski saving 50% of what she makes 😮😮😮 incredible
I'm so happy famous people are running out of money lol. I don't feel bad in the slightest because I'm working with $641 a month. You give me a million dollars ONCE I will never work a day in my life again, you give me a million on repeat then I'm doing everything possible to help others. This is where greed gets you.
In your 20s, start buying government bonds they take 15 years to mature, so your 50 a week is automatically 100 at age. However, by the time you're 40, you can cash our or reinvest into bank or government bonds again that $50 has turned into about 350. In that case I would buy 250 and a 100 bond for my 60s. So what was 50 a week by retirement will after its 2nd cycle you now get 700 face value + interest a week.
would love a video on lifestyle creep and what is worthwhile lifestyle creep and what is excessive!
why is it celebraty money problem? looks just like a regular old financial illiteracy to me
Instead of lifestyle inflation, go for security inflation. Pay off your credit card debt. Pay off your house more. Don't have a home? Invest more every month. I have a well paying IT job and I don't even have a car, and I think I'm happier for it because I cycle everyday and exercise is proven to be good for your mental health.