Student loans .... 187,000

I'm so glad I found your KZfaq channel because fresh out of college I thought 401k s and index funds would get me financially where I want to be in retirement! Thankfully I have avoided most of them so far. :) It would be so awesome if you could make a video on exactly how you became a Rule 1 Buffett/Pabrai style hedge fund manager because I'm really interested in one day going down that path and using leverage, etc. to grow my money and help other people grow theirs. All the resources relate to MPTheory!

Americans epicurean lifestyle is the main culprit.

Student loans :(

krisinphx1 Student loan is not a trap. It is an expensive, but often necessary service you need. It should be cheaper, but still worth it (for most)

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.

Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $21k ROI, and this does not include capital gain.

please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

'Carol Vivian Constable, 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.

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

thank you

THANK YOU

Thanks! Already knew this.

savings mean nothing when banks get wiped out

Saved me 6mins

Very true 😊

I used to do this all the time! And one day last year I opened up my Visa bill and got a big slap in the face when I saw that I had spent almost $600 in one month on eating out, coffees, snacks, and tipping the waiters. That was the end for me. I now enjoy my homemade sandwiches and juice boxes I bring from home!

So True!

@Dave Boyden Long distance relationship is an oxymoron. One or both of you is banging someone else between video calls. I know this, because I was the someone else.

Rebecca Barrett Rich people always eat out. Saving their time from cooking and cleaning and invest those time into making money. They only cook when there is honorable guests.

Very true, business and basic finance should be mandatory in 10th grade. I was lucky enough to get it as an elective at my school. But the modern education system is still set up like a factory to push people into 1970's economic environment. Schools need to charge dramatically from 6th grade up. (At least on the East Coast) If I knew what I know now. I would have gone to a community school for the first 3 years, paid 0 loan interest, and got the same degree I have now. (30k richer) Luckily I was able to negotiate 28k off my totals through a government program.

​@@notosure2148 I really like your comment because I would have told Alex that a 4 year degree is a requirement for some jobs. Actually, if you want to go abroad, a lot of jobs in other countries require immigrants to have a 4 year degree from an accredited university. Of course, one can make an honest living as a certified plumber running their own local business without ever setting foot in a university. The important thing is having a dream and putting everything you have into that dream. Success is determined by the people that are eating, sleeping, and showering their dream. Get distracted, and that dream is gone.

Alex K $30,000 in student loans is nothing. It's completely your fault for taking 20 years to pay it off. That's like buying a used tacoma and taking 20 years to pay it off. Clearly a worthless degree or it would have paid itself off.

60k from a 30k loan? Damn that interest rate.

$30k was actually a ridiculous amount of money 20 years ago. But really, that's not a large debt nowadays. The national average is like $37k and that includes people who had "free" education; so the median is more like $50k. I think you have had more than enough time to pay it off. But I agree with you, college debt is a giant trap.

Great idea.

RoweremWTerenie I just might give this a shot! 🤔

I think i need to do this. I have a chocolate addiction haha. Thanks for the idea! 😊

Unfortunately, it's the healthy stuff that cost a lot unless you are factoring in long-term health care cost.

Invest the savings 😀💵

Whichever firm you select, make sure you get your insurance from a reputable financial adviser, such as *Jenny Pamogas Canaya,* who has dedicated her career to financial planning. Because they will assist you in escalating, navigating better, and completing the task in a safer manner!~~

I've come across several positive endorsements of Jenny Pamogas Canaya on various platforms, including KZfaq channels, seminars, and more.

"It's quite a surprise that you're acquainted with her as well. I've had the privilege of gaining significant profits while learning and investing under her guidance for the past few months. JENNY PAMOGAS CANAYA truly stands out as one of the most exceptional mentors and traders I've had the pleasure of collaborating with in recent years. Her expertise in navigating various market situations is truly remarkable."

Anything with and an engine and wheels is definitely a depreciating asset for sure. But everyone's gotta ride in style and impress assholes they dont know or like!

cutum agree 100%. I drove cars that were shit. I spent my money on education and skill building. Now I live comfortably and still drive a vanilla car that is 6 years old. I laugh at the look at me leasers who are driving a Mercedes or BMW. But are living in a crappy apartment.

@@cutum Not really, limited production cars appreciate in value as we have seen time and time again,

@@-SP. True, but thats not the norm!

There is nothing wrong with buying a new car if you can afford it, or studying something that interests you, or buying a boat. There is nothing wrong with any of that as long as you can afford it. When I say afford I don't just mean that you can make the payments, I mean that you are investing at least 15% of your income, and you have money left over each month. Living life means different things to different people. I love having a nice new truck, not trying to impress anyone, I simply enjoy driving a newer vehicle. I can afford a $400 truck payment though, and I still invest 20% a year in retirement accounts, I avoid credit card debt, and I have a emergency fund. You can walk and chew gum at the same time if you have it figured out.

Mx Mx good point. Many lower and lower middle income people regard themselves as middle class

Exactly. If you are living paycheck to paycheck and don't have even $1000 in savings, you are not middle-class.

Best comment of this video.

Broke is a condition, poor is a mindset.

Anthony Bush. In this cruel capitalist society? Sounds like loser talk.

Awesome work- you got this!

Americans have fewer children now but houses are biggest in history!Why?I know, to store all the stuff we never use!

Unless you are lucky, a house is a money pit. If you can do without that $30,000 kitchen with the $3,000 stainless fridge in order to impress your friends; some privacy. In my life, and five houses, I have learned that renting was the way to go for me. The biggest money pits: a house, transportation, a spouse, children.

Marco Tam I'm 24 right now and did similar although a much cheaper car. I think you're a bit hard on yourself. You didn't lose all the value in the car it's still worth something it's not like you gambled 30k away. Did you end up keeping the car or selling?

I did the same mistake than you... I wish I had been told about being financially responsible when I was 20!

@@jFranco1994 Absolutely, I didn't lose all the value in the car and the ownership was actually what made me become a car enthusiast. I think the point is that in order to build wealth, time and discipline are two of the most powerful tools so that money could have gone a long way in helping me kickstart my journey. I ended up selling the car and bought a Honda Civic. There are temptations all around us that will make you overspend or be less effective with your money. I've had my current car for nearly 2 years now and I'll keep it until I have a healthy nest egg that continues to grow itself year after year. Even then, I'd never buy a new car again.

Marco Tam that's great to hear you weren't too prideful to sell and get into a cheaper car. I agree completely time and discipline are key. Sad we are not so wired to think of the future as much as the present.

I don't even own a car. Terrible for the environment, your health, and as an investment. There is a lot of value in downsizing and living minimally if you can make it work. I personally don't need shiny new things to show off and be happy.

That's why we have the second amendment

Lol, yeah, he probably is related to Patrick Stewart.

More insurance too.

Ha! To me, a 3 bedroom house is huge, unnecessary and wasteful.

Fred you can buy a single room studio if that fits your needs. If you can live with your parents for a symbolic rent or free even better. Regards

I hate HOA but every new community being built has one in Vegas.

Good advice.

I was just saying this to myself yesterday. I'm 50 and just spent the last year learning about how this whole market, FED and economic system is tied together so I can make the best of last decade or so of working hopefully pay off to the max. Always was taught to save for retirement but not as a Rule One investor.

I was on a message board the other day and commented the same thing. I was surprised at how many people said they started to learn about financial education in the sixth grade. I went to a good school but never a class like that and my kids haven't had anything like that yet either.

Totally Agree

They won’t teach financial literacy in school. Dissecting frogs, and the Pythagorean Theorem is way more important.

@@Salsero81889 lol ain't that true lol, you can be called on at anytime to perform a hear transplant for an amphibian that was just in a hit and run.

GradeAUnderA had to teach the Pythagorean Theorem to a literal wanker.

The system wants miseducated slaves and no financially independent people

They apparently won't teach grammar as well.

Nietflix lol nope!

Schools teach health, yet Americans are fat and don't exercise ... why expect financial education would have a different result?

👍👍👍👍👍👍👏👏👏

then you earn more money by doing BUSINESS

I think it's fine to spend some money for fun as long as you also are saving up money over time and can actually afford what you buy (without loans and in combination with more important things to spend money on). You gotta live life too. But of course be rational about it

You must see it as money you don’t have. Save or invest it before it EVER goes into your hands. Automatic deductions! You are stealing from your future... you just have to believe it.

Very true. I was pretty frugal right out of high school and saved up $40,000. Thought about investing/buying real estate/etc. Then decided to move to Hawaii for 8 years. Best decision and don’t regret it one bit. Thought process was wait my entire life to possibly move to Hawaii when I’m 50/60 or do it when I was young and able to hike/swim/explore. Guaranteed I’ve had more “vacation time” than most millionaires. You’re right when thinking about life as a balance. Once you learn about living below your means, all else financially will fall into place. What’s the point of saving several million only to buy a few nice things when you’re older?

Just blow all your money and vote for democrats. Don't worry, democrats promise to make everything free!

Start with his rule #1 investing book. It's still one of the best out there. Also, the Intelligent Investor by Graham.

@@stevetaylor3164 added to my reading list, thank you!

Thanks for watching!

You lie

Please share brother. How did you achieve this formula

What are your streams of income if I may ask?

Vineet Gangadharan Well this his how I have my streams working 1. I work two government jobs = 140k yearly 2. I resell used phones / electronics (all it takes is searching for good products on OfferUp , Craigslist and letgo to resale in sites like swappa.com or eBay sometimes I resale in the same websites I purchase from, last years earnings was (15k ). 3. I have money flowing in investments (stocks) . Like I stated what’s helping me is that I have no car notes no credit card debt i just live off 60k family of 5 ( 60k is aggressive numbers ) the rest of my cash flows into my other ventures I have 5 bank accounts I spread my money that way it looks like I don’t have any. All you got to do is work a tad bit harder then the rest for a short amount of time to get ahead. I’ve been doing this for 2.5 years first year was paying off my 45k in debt that I had after that it’s save save save and invest. I Recommend a book called the richest man in Babylon.

Jonathan Nava greatest financial book

@@GANJAGURUS Stay there while you can man, build up a healthy savings account. Everyone is so quick to move out but those bills are no joke.

@@GANJAGURUS I would reference a man named Dave Ramsey. I wouldn't listen to his investing tips, but he has amazing money management advice. He has his patented "7 baby steps," and I would start off with a few of those. First, have an emergency savings of $1,000 in case anything goes wrong unexpectedly. This is vital because if you don't have this, you're putting the money on a credit card and now you're paying it off with interest. I had to get 4 new tires for my car AND blew the PCV valve within a week, altogether it ran me $900 which would have went on a credit card if I didn't have $1000 saved up for an emergency. Use the money, then work on periodically rebuilding that fund without having to pay a bank interest. Once you have that, save up 3-6 months of living expenses, living at home this won't be too hard to do but it's also very important for when you move out because people lose jobs, recessions happen, layoffs happen, people get fired, if that happens to you and you start putting your living expenses on credit cards, it could take you years to pay them back. Once you have those two things, pay off any debts you've accrued, hopefully you can stay debt free. When those 3 steps are completed, I would consider that a "healthy," bank account. People like to give objective numbers for this, but I think its subjective, living in the midwest you'll have to save less money than I do in San Diego. Then you start putting money into investments or small projects and businesses. Hope all of this helps!

Yes they do, its their job, they need to make a living too. Nothing is free including managing someone else money. Money managers can't control the market. I have no problem paying 1 or 2% a year to have a professionally managed portfolio.

@tewkbury 5) Paying money managers 1 or 2% per year. Just buy index funds

MR ZACAT3TAS M3XXXICO LOL 😆😂😂😂😂😂😂

Thanks for subscribing, Dan! Welcome to the Rule #1 community.

I hear these statements a lot. I think it's quite idiotic. Children are the ultimate investment. They are like dividend stocks themselves. If loved well, treated well, raised properly, children can be your greatest investment. I've seen elderly ppl alone, no one to advocate for them, being taken advantage of in their old age. Those who have children/ family invested in their lives, are less vulnerable to predators. It may save you money in the beginning of life, but eventually, having to hire someone to care for you as you age and are left alone is still quite costly.

In the USA maybe, in Europe things are a bit different. School and College are for free as well as daycare. Makes a big difference where you live!

Children are just cute bills.

millertoyal These days, raising a child is more expensive than ever before and most kids will grow up to be Starbucks baristas indebted for life to student loans. I’m not saying that those kids aren’t lovable to their parents, but that scenario as a financial incentive to have kids is a tough sell, at best.

@@millertoyal Even if you treat your children well, there is no guarantee they will advocate for you or take care of you in your old age. They maybe too busy with their own families to take care of their parents. I have seen many horror stories on the elderly that were perpetrated by children. In many cases, the children just want access to their parents' money and not take care of them.

Shouldn't it be: if you *have* $1000 , you are not a middle class. idk man, that amount of money sounds too high for me

A middle class mindset would put it on a credit card. The middle class arent wealthy...they finance their lifestyle.

But Nope. Until you have a net worth of 3+million, you are middle class. Your lifestyle doesnt change until you hit that point. $1m isnt what it used to be a few decades ago. My parents could by a lot more with their money than I can.

You have to make 70.000$ a year to be middle class in 2019, I have so many friends living like they are rich but they are living pay check to paycheck. I live like I’m broke but in 7 years I never have to work again and I’m 33 now. I live in a 2 bedroom apartment and drive a 11 year old car. I save up and invest half my income a month

Hey Investing Book Summaries. Great KZfaq Channel you have. Please consider doing a Video series on Phil's book - Rule 1 Investing. I have a few investing books in my library and would be happy to collaborate with you on creating some content.

Yeah I bought a Ford F-150 platinum and a travel trailer that I use about 5 to 6 times a year. I just calculated the math.. truck payment trailer payment insurance registration and gas and the cost of renting the space for the weekend 5 to 6 times a year averages out to $1,333 per month keep in mind I only use it from June to September. It is fun but not $15,000 a year fun. And we don't go anywhere far because it's hard to tow this giant trailer. You're better off just taking mini vacations it would be way less and you're not limited

@@ElimitechPest I havent even spent that much over 3 Japan trips - though im single and somewhat thrifty ;)

I know people who haven't used their boat, even once, for 5+ years.

@@cbilljones :) in the exact same boat. 3 japan trips :)

Use a 401K or Roth IRA. Unless you are extremely good, most of us are not, don't risk buying individual stocks. trust me that approach usually doesn't go well. I learned the hard way. Just open up a plan and start putting money there as early in your career as you can.

More means you are in a trap

JS Fitness Anything saved in your name, an account you control or are at least vested in (pension) counts towards the 20%.

It depends on the interest you have to pay on your loan. If it's a few %, then you will make more % in the stock market without even trying much. It's always best to use someone else's money, as long as that money is cheap. You can't do much with $300/month. That's only $3600 a year. The only reason to put this in a stock market is to learn, not actually expect to make a lot of money.