5 Fake Signs of Wealth
ฝัง
- เผยแพร่เมื่อ 5 มิ.ย. 2024
- 00:00 Intro
00:28 Credit Score of 850
02:45 High Income
04:52 Fancy...Anything
07:04 Credit Card Rewards
09:39 Frequent Job Changes
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Thanks for watching, I appreciate you!
Generally, the biggest indicator of wealth is something you'll never see: someone's retirement savings accounts.
Paid off home and no personal debt is a real flex for wealth.
Why specify retirement savings? Why not just say financial assets overall? Money in the bank or brokerage account spends the same.
@@darex0827 A paid off home isn't worth much if you are going into retirement with no savings.
@damontolhurst That's why i said generally. For the top 10% of earners who have already maximized their tax incentivized retirement accounts, brokerage accounts and other assets are a great metric. The problem is that most people haven't.
But there's also a large cohort of people who don't maximize their retirement accounts and still have notable dollars outside those accounts. I just don't think benefit to cutting off non-retirement accounts when you could just say cash/investment accounts (i.e. "financial assets").
As a millionaire now I totally look the same as when I had a negative net worth. Same car, same house, same clothing, same spendings... Maybe one or two more travels, that's it...
That's some smart stealth wealth! 😄
Be rich, dress poor.
YES ! I was going to write the same thing, stealth wealth and Be rich and dress poor. A real wealthy person, will never look wealthy.
So, what’s the point? I bet you’re so much fun. Boring!
@@miketheyunggod2534 If you had $40k in the bank what would you spend it on?
The one real indicator of wealth is contentment. I'm not a rich person by most numerical means or measure, but I consider myself an extremely wealthy person because I am satisfied with the rewards bestowed upon me from my hard work, and I have great relationships with those that I love.
that's what poor people always say...j/k😁
You sir are a lucky man indeed. Welcome to the club.
@@hanwagu9967Your comment is poor and in poor taste. You must have a dearth of self satisfaction in life.
If you can stop working and still maintain your current lifestyle until you die, then you are wealthy.
Nailed it!
Hmmmm.... I see your point, but I'm not sure I agree. I could stop working and maintain my lifestyle. But I am nowhere near wealthy. I just have no debt and have always lived very frugally. I own a very modest home, a decent amount invested and my future Social Security will cover all my expenses. I am comfortable, but not wealthy.
@@chiplangowski3298you may not feel wealthy but compared to most people you certainly are
@@chiplangowski3298 Yes! You nailed it, provided that you invest and understand interest or compound,if you do you've earned it,if you don't you pay it.
@@chiplangowski3298I think it applies more outside /before SS. Glad you're secure though!
My wife's a nurse and I work in construction my whole life, blue collar. We didn't buy our kids a car for graduation we didn't throw them extravagant sweet 16 party. And we now have eight grandchildren. There's never been a surplus of money but there's nobody wealthier than me and my wife.
Nothing but the best knock-offs money can buy for me: i drive a BNW, have a Robex watch, swing Taylor Mode golf clubs and wear only Hugo Ross and Jojo Arnami suits.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Mind if I ask you to recommend this particular coach to you using their service?
Leticia Zavala Perkins, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
The real indicator of wealth is when you ask for guacamole and the clerk says it costs extra and you say "yea that's fine"
ahahahahaha. Just ask for double guacamole.
@@targetegratsettle down mr money bags
not necessarily. See items 1-4 again.
Actually the opposite.
A wealthy person often delays gratification and waits and buys it in the store or makes it at home because of the better value. That’s how she got wealthy
@@user-pj6nn9mr3n That's for a person who is on the path to getting wealthy. Once you are wealthy, you don't have do that anymore. You trade money for conveniences, time, and whatever else you value.. that's the purpose to becoming wealthy.
Just topped off my truck, four gas cans, and two diesel cans everone was in complete awe!
Lol
$$$ you must be rich
If you saw me us you would never think my husband and I are multi millionaires. People we know have lot less dress fancier and drive expensive cars: not us. We are retiring in 2 years with plenty of money to live and travel.
You’re saying this from aboard your Searay 500 Sundancer aren’t you ? 😅
I get a chuckle or two when I see someone visibly and intentionally flaunt their designer wears/wares. I would make small talk and compliment on it, and it makes their day. Then comes the part what do I do for a living. I simply tell them I'm unemployed. Some feels sympathy for me (whether it's real or not), while others want to hang out with the social upper echelon. I dress like an average person, and unemployed for me means early retired. When you hide the fact that you're affluent, you can learn a lot about others, and the people that you want to hang out with, that likes you for you, not what you have (or don't have).
Eating out at fancy places, taking expensive trips, could be fake indicator of wealth.
Like when Drake or Beyoncé or JayZ are at award shows. Yea, they poor. 😂.
Regarding cars, I always buy them, maintain them, and run them as long as possible. I literally owned and drove a Saturn Ion for 12 years. I often sew people leasing new cars for 2 years, turning them in, and then leasing a newer car for the next 2 years. And they wonder why they're broke???
True! 12 year old car here Bought it 4 years old. Love it and will drive it until it breaks down. After that I will do the same with a smaller one.
I've bought new, bought used, leased. It's all a function of figuring out what the TCO (total cost of ownership) is going to be for the duration of having the asset. I leased a Nissan Leaf for 3 years at $220/mo. Why? Because at that low of a lease payment, it made no sense to buy it. At the end of the lease, Nissan offered it to me for $7000. I paid cash for it, then sold it to an employee of mine for what I paid for it. They got a great deal on a 3-year-old car.
Most cars I buy 1-3 years old and keep for a decade or so unless I can buy it in my business, then I buy new and take the depreciation. The tax savings make buying new the equivalent cost or less than buying a 3-year-old vehicle.
@@andrewdiamond2697 That works if you want to drive a new car. A not so old used car always has a better TCO. But you have to find the point when it doesn’t make sense any longer to maintain it. That’s the (financial) break down part. Even if you could make it run longer with lots of repair.
Edit: So the second part of your comment ist exactly the way to go. 👍
I love those people. I’ve bought many 2 year old cars. Latest was a fully loaded ford explorer st 2022 with a CPO gold warranty and 31k miles for 39k. Original sticker was over 60k. The car looks and drives like new. I usually keep my vehicles 10 years or longer. Had my last pickup for 18 years. Current pickup is 11.
@@robm6803 But it isn't "always" as was the case for me twice. The maker of the vehicle had calculated a really high residual value and low money rate, and as a result, the leases were so incentivized due to bad math on the part of GM and Nissan, it was literally cheaper to take the cheap lease with zero maintenance or chance to buy tires than it was to buy new or used...but just in those instances.
It really needs to be a case of the dealer or manufacturer making the lease vs. buy math so tilted toward the lease that it isn't funny. As usual, if you can figure out the future value of the asset and the cost to operate, knowledge is power.
Looking wealthy can also make you a target. Truly wealthy people do not look it, flaunt it, or care what anyone thinks.
100%!!
Zero debt. Zero mortgages (two paid off houses), no car loans, no credit cards, no nothing.
Last two (gently used) cars paid for with cash.
Every pot that I piss in belongs to ME!
I’m never borrowing another dime in my life if I can help it.
So you went from Zero to Hero
Wow. This was a great video. I paid off my mortgage and was finally 100% debt free (not even a credit card) and my score went from 840 to 750
that happens to practically everyone
And now you dont need credit so who cares
Haha, the Same thing happened to my wife and I.
@@ErinTalksMoney I know. Just sayin'. I took pride in that score.
Paid off home mortgage and no debt, but still have an 835 score from using credit cards regularly. That may stop though if according to Clark Howard merchants may start charging fees this summer for using CCs.
Good health is wealth also!
Let’s see you pay bills with health then
No. Good health is a blessing and an asset. It is more important than money in many ways. But it is not wealth. I wish you health, wealth and happiness!
Too many people confuse income with wealth. Income can help you increase your wealth, but if you rely on your income to support your lifestyle you will not build wealth. My favorite commercial was for some investment company that shows a guy in a very expensive car rolling up to his huge house and swimming pool and the narrator asks him how he did it all, he comes back with I am in hock up to my eyeballs!
You can rely on income to support the lifestyle, but you must invest a sizable amount.
Especially people trying to "get the rich" through the income tax. Wealthy people don't need an income.
I think that was viagra. The host with the most
I loved that commercial.. "I'm in debt up to my eyeballs"..
Then later... "Somebody help me..."
I worked with a guy once that had a $1000 pair of boots (this was many years ago) but he'd never wear them except to meetings and such and would never wear them outside. He kept them in a box by his desk and would put them on if he was meeting with some company bigwig. Funny thing is the CEO of the company wore blue jeans and a ratty pair of sneakers. He wasn't impressing anyone or making any points. He didn't last long.
There is a difference between being a net worth millionaire with say a house with 500k of equity and a $600k 401k, and someone that has a million bucks in accessible cash. Just because someone has a net worth of $1 million, doesn’t mean they are wealthy or can afford a lavish lifestyle. There are people who make $70k a year that have a paid off home and a decent 401k over time.
My wife bought a cardboard cut out of a BMW and put it in the driveway.
For real? 😂
That’s awesome 😂
My wife bought a Tesla Model Y. Parked it in the garage and made me park my Model 3 in the driveway. You are lucky.
You can get a used 2015 BMW X5 with less than 100k miles for less than $20,000.
Thinking outside the box. 🤙
Great video Erin. I agree with you about the credit score. The factors used to determine it can be deceptive. I have always paid my bills on time since graduating from law school. I had a mid-six figure salary, yet my credit score is only 810. I checked to see why it wasn’t higher. I found out I lost points because I only have 4 open lines of credit: an Apple credit card; a Costco Visa card; and 2 airline credit cards that are staggered 2 weeks apart so I can go back forth between the two and use the float. I haven’t had a car loan since 1982. I haven’t had a mortgage since 2000. I haven’t had student loans since 1990. I haven’t carried a credit card balance in the last 40 years. When I looked at the details of my report it says this area needs work. Having more credit is the last thing I want. Also your comment about high income was spot on. I managed a legal unit made up of 22 attorneys. Everyone had salaries over $200,000 a year; however, several of them had 5 figure credit card balances and could barely scrape by.
Pay off all your debt and your credit score will drop. That will tell you everything you need to know about credit scores.
My credit score is zero. People can't wrap their heads around that. I haven't had any loans for 9 years. What a wonderful feeling of freedom! I feel sorry for all the wage slaves out there in the world who are just working for the banks. Wake up people.
Your comment just tells me you don't understand credit scores.... if you think it has anything to do with debt, you're simply wrong and don't understand the system. You can have no debt and have a great score.
@@user-mo6lh2ie9rNo such thing as a zero credit score..... credit scores in the US range from 350-850.... it doesn't start at 0... there simply isn't sufficient information for a credit score calculator to compute a score.
My only debt is a credit card that I pay off multiple times per month, never paid a dime in interest or fees, and my credit score is over 800. There's not really any value in getting it higher than that. So you don't really have to have/carry debt to have a good score.
@@thehomeless_trucker you are so wrong. It has to do with credit utilization. How likely are you to consume credit and pay it off favorably to the lending institutions. Your an ID 10 T
0% debt to income ratio here
Me too!
And me🤑
Great. Is that with kids? A high or a low cost of living area?
@IrisP989 2 kids. Wife finished her PhD last year and decided to stay home with the kids. We both did live with our parents for a few years after college while working full time so we basically were able to pay for our house (which also has a garage apartment/rent income) with cash. Cost of living: probably middle. We are in a really nice area but in one of the older homes.
right here too bro
Definitely true on the credit card one. I’ve gotten into getting, using and maximizing rewards, but that definitely requires some restraint from flashy cards that don’t actually make sense for my spending habits. The Sapphire lounge will still be there later when and if I can afford it.
I told my wife, we're not keeping up with the Jones but now that we are in better place financially, i just want us to be living better than we previously did.
Very good advice and you brightened my coffee break :)
Love it! :-)
It is amazing how over the last ten years or so, everyone in America has become a "multimillionaire" and everyone is making six figures plus. Yet, the average household income (with two people earning) is between $45k - $60k annually depending on their location.
That’s cuz the 50k earners aren’t on TH-cam bragging
@@19hundoc47Yep. Everyone making $100k-$300k don’t mind speaking on finances that’s why you see most of them like that. B/c they know they have enough.
But people that make the average are more hesitant b/c they don’t want their business out there. Or to be shamed.
It’s like the news, you hear 95% bad, even thou the good is more like 99.99%.
Hoya Saxa!
@@19hundoc47 Exactly. See what happens when you look at the median income. That's siting at about $40K. The percentage of people making $100K to $149K is about 16%.
The US census says it's $75k in 2022. It also doesn't hurt that nearly a third of millennials have college degrees, and almost half of Gen Z are considering pursuing a college degree. According to a New York Times article, 21% of people aged 55-64 are millionaires, but this more than doubles to 45% of the same cohort with a college degree. Basically, a millionaire nowadays means you own your home and have some money in your 401k.
This does, however, taper off at around 5%, with only 26% of college-educated people having that much money. For reference, $1M is high net worth, $5M is very high net worth, and $30M is ultra-high net worth. There are only 500,000 people in the world with ultra-high net worths.
Great thumbnail. On the *_Fancy_* topic, I've been almost obsessed with the whole fake wealth hustler world. Some of the social media tricks are painfully obvious. E.g., Posing near a high-end sports car in a photo. Like you said, it's smoke and mirrors.
The fake luxury market is big too
CC use a 25 day billing cycle to catch you. If you pay the bill off the first of the month eventually they will come a day when you miss it and they hit you with a fee.
I’ve found two options. First keep enough cash that you can always pay off the bill. Second ever 2 weeks when I’m paid I pay off the card. You don’t get the full free 30 day loan, but it’s better than paying the late fee.
Just change the billing cycle so it’s due 5-10 days after the day you set to pay your bills.
Thanks for the advice on 401K plans. Also, you look great, whatever diet and exercise regimen you are doing keep it up!
Excellent comments and, I agree with you 100 percent. Forget about everybody else, the only thing that really counts is, what you decide to do financially for yourself and your family. Also, wealth even as a certain dollar value in your investment, retirement, and bank accounts is very subjective. Prefer to use the term financially comfortable which, for myself is as follows: have a fully pay for home in Southern California, a fully paid for automobile, no student debit, no credit debit, no personal loan debit. Plus, I also have a private sector pension and 401(k) plan, a public sector pension and 457 plan, social security, and personal savings earning 5 percent APY in the bank (smile...smile).
MY goal is to live entirely on my SS. Almost there, even though I have a 6 figure investment portfolio.
Nice goal! May I ask what age you're thinking about taking SS?
@@dbdouglasThese people just type whatever to get likes. You’re not getting answer from them
The opposite of Fake Wealth is Stealth Wealth. And there is zero downside to a Stealth Wealth lifestyle, at least none that I can think of. Erin, a great video idea for for you, hint, hint 😊
People are so insecure, they need to feel better than other people. The classic for me is airline travel. First they board those that need assistance, next veterans or active duty, then airline card holders, THEN zone 1, 2, 3.... Of course people will say they line up to get on as soon as possible so there's room to stow their carry on. Yeah, maybe, my goal is to be last on board, we're all getting there at the same time. I know my situation and that's more important than proving I'm wealthy, to people I don't know.
My goal is to the be the able to store my stuff in the overhead, get setup before someone sits next to me, and when we land grab my stuff in the overhead and get off ASAP. I fly enough to get the first boarding group at no extra cost.
Debt? What is that? We're all financial mutants here on this channel.
haha, true!
wrong channel...that's those monetizing guys over at TMGS.
Interesting , Thank You
Another great video, Erin. I hope my kids are seeing it.
I hope so too!
Hey erin i hope you can do a video on insurance advice for wealth planning. For example-- Long term care, disability, and umbrella.
5:55 that is an M Roadster ... I bought one used in 2019 and it's only gone up in value. Very fun to drive!
...but I make far over 17K and am building wealth. It was the most expensive car I've ever bought at $13,500
It's OK to have one or two indulgences if done responsibly ... I do 95% of any repairs myself
The part that's not obvious to non-car enthusiasts is that's a 25+ year old car!
I worked for a self made millionaire, he said check the quality of their shoes as people often do not spend any money them in relation to other clothing when trying to show off.
So very true. However, when confronted directly some people justify their spending habits by arguing they'd rather live than survive. I think that's really funny.
Nothing to add here for sure, I've always been heads down focused on my own goals I didn't really have time to look around to see what's fake what's not
A very good post
I never tried to raise my credit score but years ago went to buy a car and they told me my credit score was 843. Only had a mortgage at that time, always paid everything on time. My actual gross income was fairly high ($100k in 2006, $160k just before I retired this year)...but my net paycheck was never more than 45% of that, and I still saved from the that.
I made an average of $27,000 per month from my businesses in the US. BUT I live in Dominican Republic $500 per month apartment. I have zero debt. No credit card. Only my apartment and $1000 per month for rental car. I travel freely and eat out everyday. I feel more wealthy then before when I live in the states on $1 million home with $5000 per month mortgage and $2000 per month Mercedes
True wealth is hidden. It's what you don't see. People can also appear to be very poor but have a large savings in their bank and retirement accounts.
I get a kick out those who live in cheap apartments, yet drive luxury car.
My boss's wife drives a Mercedes and he couldn't comprehend how I pay $400 year liability car insurance for 2 cars vs his full coverage $6,000 year for 2 cars
They lease both. They are making other people rich with their income.
Just stopped into the gas station and flashed a hundred dollar bill. I'm rich! 😂
If someone is trying to impress you with their wealth....walk away from them....they need your money to sustain.
Building onto Erin's example, some people with credit scores of 840 can get turned down for loans because their debt-to-income ratio is unreasonable
Great vid and on point. Just found you...think I'll stick around.
Welcome! 😊
I love the thumbnail with the monopoly money 💰
haha you got me on the credit card one. My next card will be the chase sapphire reserved just because its a metal card and the great sign up bonus. I always wanted to say I own a premium metal credit card. Soooo for me its worth the $95 annually fee lol.
haha! I hope you love it!
It's generally more important not to have bad credit overall than it is to have a perfect 850 credit score. Speaking as someone who has been on both ends of this spectrum. And it definitely doesn't say anything about your level of wealth beyond your ability to service the debt you accrued.
I have an 840ish score. Only long term debt 8k mortgage. Just wrote a check for a used car. 21 year old salesman told me he drive a BMW.
Love the Apple Card. It has built in security features like a rotating CV2 code and no physical numbers that someone can see by looking at the card. I don’t know it was metal until it showed up. It has no fees that I’m aware of so it’s been a favorite card of mine especially since you have the wallet app which makes paying it off the second purchases process.
The wealthiest people I know drive a basic car, live in a humble home in a decent neighborhood, cook most meals at home, and live a healthy lifestyle.
Hi @Erintalksmoney I have a personal question... Do you think your passion for financial freedom or responsible decisions are a way you were born or education impressed on you by parents? I'm now subscribed and love your content!
Any woman who is not wearing a ring on the left ring finger is 100% available. I love this....
9:09 I ask myself that same question about the Sam's Club Membership.... Now Sam's has a Plus Membership, and Walmart has a membership, out local HyVee Grocery Store has a membership....etc...
It seems more and more are having memberships touting some mysterious benefits where the end goal I believe is to gain customer loyalty. This is so sad because stores used to gain customer loyalty by being friendly, giving great service, and trying to go the extra mile for the customers they valued. This means they were giving to you to help establish this relationship, but now we are supposed to be giving to them for the 'right' to be a customer!
We bought a few Rental Houses a few years ago and I can’t believe what they have done to our Net Worth!
My wife and I purchase items with cash (debit card), we do not need a Credit Score.
The only people who think they need a Credit Score are the ones who go into debt and hence avoid building personal wealth.
Thank!
Wealthy people don't finance cars, and for some houses either. Exceptional credit over 830, and could care less, it's never used. In fact I locked my credit at Experian several years ago and forgot about it. Erin, you are so correct, I know people who dress like they live on the streets, and could afford to buy my life's assets with 'walking around money'.
One friend called me in 2009 and said- "there's a couple short-sales you were looking for. Told him, I don't have my finances lined up short $95K. "I'll bring it over tonight"... He drives a 1997 Ford pickup like mine.
I think the 'glittery' rich are what most people think of as being rich because it's what they have been fed. The term was coined by Dr. Stanley who wrote The Millionaire Next Door. The typical millionaire next door has little in common with the glittery rich.
@@TheGoldenAgeofHardRock So true, and it's what caused the bubble to explode in the 2008 housing crash. People unaccustomed to amounts of cash suddenly noticed $400K+ equity in their overvalued homes, mad scramble to cash-out-refi and parked new BMW's in their driveways, 4 months later their homes were worth 1/4 of their $600K mortgage.
Half of homes on a city block were in bankruptcy, ripe for some bum in a warn out tee shirt driving a 97 Ford pickup.
*couldn’t care less
@@HighCountryRambler Yep, two sayings come to mind, all hat and no cattle, and we found out who was swimming without a bathing suit.
My credit score has hovered in the 815 range for the last 3 years and is actually DOWN from 820s. What did I do to get it to go down? I paid off my mortgage and now I have no debt. The little bit of credit I use each month I pay off each month. My income to available credit is "too low" they say. In other words, they want me to take out more debt to raise my credit score. Um, no thanks. Cash only for this guy.
My score is in the same range. According to my credit card company my credit score would be higher if I had installment loans. Kind of ironic that someone who paid off his mortgage and can easily pay cash for one's car has a lower credit score then someone who needs a loan to buy a car.
I think credit score is a joke I have been paying off my credit cards monthly for 30years I have paid off all my loans over the years and have two homes paid off so I have no debt but my score wont go above 825 how does someone with lots of debt get an 845 score doesnt make sense
You have not used credit via loans, etc. That is why your score is lower. The score is to rate your credit worthiness based on your credit usage. I have the same issue, but as Erin pointed out once you get about 820 or so it really does not matter.
My wife has one classic designer bag that I splurged on for her 40th birthday. The idea being that she'll use it the rest of her life for special events and occasions. Otherwise, the $20 purse is just fine.😁 I agree about paying off CC's monthly if you can, however, I also view a CC as an emergency fund to be used when your cash reserves are not enough to cover an expense. I don't believe they should be used for regular discretionary expenses.
I gave up all my credit cards that had an annual fee - now only have 2 free cards but Atleast with lounge access
I received a letter from a big box store letting me know that if I didn't make a purchase on my credit, my credit limit would be reduced and it would affect my credit rating. Trying to make sense of that!
Great video. It is funny how I see all the things you mentioned every day from people who are pretending to be wealthy. One of the biggest I see is the fancy house. It looks like they have wealth but instead they are just swimming in debt.
Well... actually, if they manage to pay it off, it is quite likely they made a great financial decision. People who bought real-estate 20 years ago and didn't lose their jobs in 2008 or even people who took out a loan 10 years ago, now have huge lead in net worth over those who didn't. They got to take advantage of very low interest rates + huge increases of real-estate values, that in combination means, that their net worth has to be quite high. But if you take out a loan and have to sell your house just a few years in, then yes - then you made wrong decision.
About 15 years ago I read news piece that used the term “wealthy” and defined it as a couple that made at least $100k combined.
If you are wealthy you won’t even know you have a credit score. Be an owner not a loaner or borrower.
When I used to travel for work I got an airline credit card that had a $90/year fee. But the card gave me 2 free checked bags on every flight. It took me 2 round trips of personal travel that wasn’t reimbursed by my employer a year to justify that expense, which easily happened.
Last year my credit took a hit because my property taxes changed slightly and therefore my automatic payment was not enough🤦♂️Learned my lesson!
ouch!
I went to a lake resort a week ago. We were watching the Kentucky Derby in a red neck bar, and I felt like I was the poorest dude in the bar. I dont have a big boat, or 100 K pickup truck. I havent had any debt since 1986. I also have an 820 CS. I feel poor compared to the rich guys I know.
High credit score also helps with insurance rates.
1) your credit score (at least here in the UK) is not only how well you are repaying debt, but just as much how likely you are to make money for the lender.
If you have your health, love and a good job, you have something greater than financial wealth.
Additional one: Extravagant vacations/social media flexing. I know some people who have credit cards to the max and yet, 6 times a year are vacationing to elaborate far off places with their family. Others: Fancy cars (average car cost is what 45k now? A fully loaded truck is closing in on 80k, and yet banks/dealerships still require 0% down on a depreciating asset - the car financial crisis is coming).
I think in most people's lives there are 2 how large can I live numbers. Earlier in life it is your credit score, get the biggest house you can get a loan on and the most expensive car you qualify for. In retirement your number becomes what percent chance you have of not running out of money before you die. If you can have your same income level for the rest of your life, you can spend at the same level but, if you are thinking of retiring and having less coming in, you need to look at your chance of outliving your money. Even with a 850 credit score going into retirement, you aren't going to be able to borrow more than you can pay back.
5:18 The “I make 400k selling cheese” video title sounds like someone you would see on House Hunters:
“My husband is a retired rodeo clown and I sell cheese professionally. We are looking for a 1.2 million dollar house that is in the city while also having a beachfront view”.
😂😂😂 Those have to involve some kind of trust fund kicking in because there's no way "a school teacher" and "part-time poet" has a budget of $1.5 mill or whatever scenario
Hey rodeo clowns are no joke. It can be a dangerous job.
I literally LOL-ed :-)
the whole craft cheese business seems pretty lucrative to me...have you seen the prices they charge?
2:45 DTI can lie as well. My DTI isn't great, but that's a function of two things. First, I have a 15-year mortgage, so the monthly payments of nearly $5k include nearly $3000 in principal. Second, I own my own business, so the income that comes to me personally is lowered by expenses in the business. Some of my business expenses are expenses I would incur as an individual (e.g., cell phone, Gigabit internet, etc.), but they're necessary to do my work, so I have the business pay for them. We still save between $36k and $48k for retirement each year, and still have a net worth in the seven figures.
The financial independence community loves to judge a book by its cover, but in reverse. 😂 Maybe people just have money and can easily afford their lifestyle, while also taking care of their future selves. Why automatically assume that they’re faking it just because some might be. Maybe we simply shouldn’t judge based on appearances, either way. 🤷♀️
Yep "anti-clout" is just another form of clout especially when it comes to cars. They could afford to get more efficient hybrid/electric vehicles but they pride themselves in driving 20 yo gas guzzlers. They already aren't working in society, they could at least contribute to making their immediate air quality a bit better 😅 Half joking
@@vulpixelfulmore efficient cars really 😂. What do you plug your EV into? Coal plant Nat gas plant? They end up in landfills over a fender bender that damages the battery that took tons of fossil fuels to mine😮. That said there are plenty of people that can afford the nice house, new cars and nice vacations like my sisters family that make over 400k and live in a 1 million dollar house.
Oh here is another one. I got my house with a 640 credit score. Gi bill 3.5 interest. 0 down. And it was 175k in 2021 and now it's 240k depending on who you ask. Credit scores are just a scam to get you to borrow more money. I have a few. But I'd never let my credit situation tell me who I am as a person or my wealth. If your ability to obtain credit is tied into your value. You are in trouble from a personal stand point. I wake up happy everyday.
I like looking broke. Also use coupons and take advantage of 2 for 1 sales at the grocery store. Probably the reason we are retiring in our 50s. We never outspent our income even when we lived at the poverty level when we first started out. Still had money going in savings. As job changes and income went up, we marginally expanded our living but made sure we saved and invested first before having any other fun ( pay yourself first ).
The credit score thing is very true, it's still good to have to use as a tool for finances overall if you plan to leverage debt. But it's really just for that, debt.
And OMG haha that CNBC make-it on that actor dude with the red BMW Z4 is hilarious, I came out with the same conclusion.
Unfortunately it's not just for leveraging debt. Employers, insurance companies, and landlords use credit scores in their decision-making. My current job checked my credit score, and they used it as a measure of ethics since our industry is regulated.
@@vulpixelful ohh you're right, sorry I forgot that's a thing now. Pretty wild
Just live with in your means ! And no everyone cannot have New Cars and large new home if you do not have the income to support it.
I have had an 850 FICO off and on for the past five years. I guess it gives me a buffer, but otherwise no difference than an 800. I still have a mortgage, but no other debt
Wealth is invisible. 📈🙃
No matter how many years of a perfect payment history, You’ll never have an 800+ credit score if you’re maxed out like in your example. A large chunk of the score is based on credit utilization (not debt to income). Percentage of outstanding credit card debt to total credit lines. Your score often gets dinged down to 700s by using just 10-20% of your available credit. Maxed out even with all payments on time can easily bring you down to the 600s. Even having a single maxed out card and 4-5 cards with zero balance can still bring your score down to 700s.
I was going on a trip last Oct that cost over $4000. I got the American Express Delta skymile card w 88,000 bonus miles do I was able to Fly almost Free! Since I was going to spend that money anyway, it made sense. There is $99 annual fee after the 1st yr so I might not renew it?
Credit score: two-edged sword 🗡️ to have a great one you have to actively use credit, using credit is how people are getting into trouble
As someone who is pretty well off but not super rich, I don't really care too much about credit score because if I really want something, I could just buy it upfront without loans. I also don't pay much attention to my bills, I put them on auto payment and they get the job done every month. You can say this is me being lazy but it's about the only hint you'll ever notice that I have decent money. Otherwise I wear the same clothes I had for 10 years, I don't wear any accessories, old phone, cheap hobbies, etc.
I have a simple metric that i follow. If you want to look wealthy to most people make twice as much as you need to live. If you want to feel wealthy make 3x or more what you need to live. And by live I mean all your required expenses including your saving and retirement. This means i have 2 numbers that I can adjust, to achieve the ratio I would like. As I work on increasing income, I can also work on lowering my required expenses.
Zero debt, minimal bills. Over 50% gross income goes to investments.
I always pay my credit card in full, and then I assume I can’t use it until the new billing cycle starts. Is that correct? So after my payment, I never use my card until the next billing period.
A good indicator of wealth is happiness.
I know several quite wealthy people that are unhappy. Money doesn’t buy love or happiness. Sorry to disagree with you.
Biggest signs of fake wealth is people wearing the type of luxury brands that poor people associate with rich people, summarized best by a Casually Explained video: “I could’ve worn a $5000 Gucci suit and people might think I’m cool, but if I was really cool then Gucci would’ve paid me to wear it.”
I have a Rolex and I have it because I like it, want it, and have worked hard enough to be able to afford it without the cost having the slightest impact on my finances. I hate it when people say “but my $10 Casio can do the same job.” Good for you. I like my Rolex for myself and don’t care what anyone else thinks. Normally I wouldn’t have said even that much about it, but it’s pertinent to the topic.
@@angiepatterson6338I agree with you here, actually. I don't think there's anything wrong with somebody setting a goal to get luxury items when they can afford it. You don't know if they can't afford it just because they have it.
I think people tell themselves that everybody with luxury items are actually broke so that they can resist playing the comparison game in their own minds. But in reality they can't know that for sure.
I have a lot of debt on a lot of income property. I don't worry about the debt. The rent services triple the mortgages.
Clever thumbnail! Made me giggle a bit.