Interested in learning more about wealth building? Check out our upcoming course Building Wealth By Doing Nothing: Investing 101 kicking off this Tuesday, Jan 25th! Grab your ticket now: www.eventbrite.com/e/building-wealth-by-doing-nothing-investing-101-tickets-204125493847?aff=TWFB

1:07 Myth number 1: Wealth building requires a windfall of cash 3:07 Myth number 2: You need to be hands-on in order to build wealth 5:00 Myth number 3: If you work hard and are loyal to your company you will be rewarded 7:22 Myth number 4: You need to own a home in order to build wealth 9:47 Myth number 5: You need to time the stock market in order to make money 11:45 Myth number 6: You need an advanced degree in order to build wealth 13:56 Myth number 7: You can build wealth by keeping your money in savings

My husband's grandma(87) told her kids she's not doing inheritance for them to fight over. She's spending her money on the family as she pleases while she's alive and can enjoy it. She off loaded the sentimental furniture and piano on the right family and downsized to a senior apartment. She doesn't want to have tons of strings to deal with in her old age.

"Why is Congress still allowed to trade stocks?!" Amen Chelsea.

As a female working for the same company for 30 yrs., I realized too late about being under paid. Something to consider -- it affects your social security benefits as well since the amount you receive is based on your earned income.

I agree with job hopping! I doubled my income by changing jobs when I was 26 even though a lot of people told me it’s too risky. Best decision of my life and it completely changed the trajectory of my lifestyle and finances.

Not only willI not be receiving an inheritance, I have begun supporting my mother financially at age 40. I’d love to hear advice for elder care when your parents aren’t financially stable and will need to be supported, potentially for decades. And separately, how to unlearn poor financial habits we “inherit” from our parents based on what they modeled as their money mindset when we were young. I’m still struggling to overcome some of these bad decision making values.

We need a video about what careers you can jump into without a college degree. Pretty Please :)

God, that third point hit home. I know a girl who has been working with the same retail employer for a little under 10 years. She has a major role in the employer's marketing for the region we live in: she oversees multiple stores in our city, and often drives to stores in nearby cities to oversee them. She also manages employees at her home location. It isn't unusual for her to work well over 40 hours a week. Her employer pays her less than $2 over our province's minimum wage. TEN YEARS of faithful service, and that's what they think she's worth. All her friends keep telling her to quit her job. I really hope that she works up the courage one day.

I’m 53 and have worked in 11 different companies from age 18, without a university degree. Starting at minimum wage, I soon increased my salary by 20-25% per year. Twice I changed job not for the money, but for the opportunities that pushed me forward. I always knew what my value is on the market, and never hesitated to negotiate. Even today, my salary has increased by 20% over the last two years. So I totally agree that staying in the same company for 30 years isn’t the way to increase our income.

Honestly videos like this are really refreshing. A lot of financial advice videos are very guilt tripping but I come back to the financial diet because these videos are not.

7:05 "These ho's ain't loyal".... 🎶 no they aiiiiin't 🤣🤣🤣🤣 I am so dead 💀💀💀💀💀💀

It's pretty messed up that college has become a purely economical proposition. When I was a teenager, I went away to college to escape my bad neighborhood and messed up home life at the time. The "cost/benefit analysis" there was to finally live in a place where I didn't have to hit the ground when the shooting started anymore. Idk, the debt seems like the cost I would otherwise pay in healthcare for the stress and lack of healthy choices around me. Edit: No shade on Chelsea here, I was just lamenting in general

It's funny how "you don't need to buy a home, renting is fine" seems to be something rich people tell poor people, while at the same time buying homes to rent out...

The only thing I would add about your house only being worth money if you sell it: you can sometimes get a home equity line of credit or cash out refinance to use those funds in other areas. I've personally used the equity in my first home to buy my second. Then I used the equity in my second home by way of cash out refi, to pay off the first one and keep as a rental, consolidate to one mortgage with a better rate. And now I have the option to use the equity in my second home to leverage another investment property. All without selling a home.

Oh the timing of this video in re. To not being loyal to your job is so true!! Be loyal to yourself!!

Investing in the stock market is the best option to make a passive income. Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I’m keeping a diversified portfolio.

I fully approve bringing that sweater back. Both because, it pops lol, and because there's nothing wrong with repeating outfits. Something Chelsea has spoken on, so she's walking the walk too

LOL I love how she went from super cool and calm to clapping some sense into Congress @11:34

As the “boomer” who is 59 and still working my 16 cent raise was an insult. As the first raise in over 2 years for a nurse working during Covid I could not believe it. However, to change jobs at this age and economy I would lose serious $. I am not going to be able to walk into a job with 35 years of experience and get paid at the top of the pay scale . Not to mention changing health insurance with pre existing conditions... You are spot on about real estate. We bought our first house in 1988 at the height of the market at 11.5% interest and after 10 years we actually had to pay for someone to take it off our hands. We have bought and sold houses multiple times over 30 years and only once have we actually made a profit. Once upon a time you used to be able to deduct the interest from your mortgage, state taxes, union dues etc from your taxes. All those people in bidding wars are CRAZY! Take it from someone with who got caught with their pants down in 2008.

Company loyalty is such BS... been laid off 3 times from 'loyal' companies who tried to move tech jobs offshore to go cheap. Needless to say I found out later it didn't work well for them. Moving around and controlling your own 'promotion' is the best route and steadily stack 401k's has proven to work for us.

My father always compared investing in the stock market to riding a roller coaster: just because it’s going down doesn’t mean you should try to get off the ride yet.

I thought the main benefit to home ownership is that in retirement years your monthly costs will be reduced if you live in a paid off home, not necessarily a wealth benefit.

To a European such as myself the statement that one should treat higher education primarily in terms of an economic decision is such a heresy. 🤯🤯 Seriously messed up.

Small disagreements: 1) depending on area and background, owning a home CAN help with wealth, in terms of relative stability for PITI payments, and the (reduced but very real) deductions in taxes. Owning a home in the USA is a real step forward for minority people here. Rent has gone insane in so many areas of the USA- even in rural areas rent has become expensive- but buying, with the help of various programs, can be a long term way to establish wealth. Just paying down the loan helps with wealth! 2) I absolutely agree with job hopping when you can- I was laid off but given notice- enough time to freshen up my skills and land a new job that pays more. 3) The potential of a Roth IRA or a 401, once you are stable enough to invest in it, is huge.

I one hundred percent agree that real estate is pretty iffy as an investment (unless you are specifically buying it to rent it or flip it, and even that comes with risks). The main reason to buy a home should be because you want to own a home, not because you think it will make you wealthy. But there is one financial perk of owning real estate, which is that you can potentially borrow against it. It's not quick, liquid money, but if I ever suddenly needed a large chunk of money, I could refinance my mortgage and use what I have in equity on my house. I don't love the idea of doing this because I dream of someday not having a housing payment. But emergencies happen, and it's nice to have that option in the tool kit.

I would love to see a video of what to do in a market crash. There's been some pretty negative signs recently and I would like to know what people did in 2008 and even the 1930s to weather the storm.

Chelsea this is one my most favorite financial diet video ❤️ thank you

In my early 20's I received an inheritance of $6000. I bought a very cheap rural block and a house that was being knocked down (which I moved on a truck) which cost me $10000. I have done this 12 times now, am in my 50's debt free and have never been employed due to a disability. Never let anyone tell you that you can't build wealth. I only shop once a year, (never retail) do not spend on 'impulse' buys and grow a lot of my own food. I now live on 100 acres in a newly renovated house and just put in a pool.... all from $6000. It can be done.

I first taught myself business accounting when I was 16, got a degree in project management and programming and am currently working on my MBA. And I'm so glad for videos like this. Most people that love business get into professional investing or entrepreneurship, only to find that the most successful orgs are actually pretty conservative and boring. Most money managers sell mutual funds all day and invest in index funds at night. Most CEOs get rich off a high salary, not off investing in the stock (people paid in stock ownership are still being paid, not investing their own money). As someone who has made mistakes, gotten into MLMs and literally had a business partner leave town without telling me, I appreciate the down to earth advice and grounded logic here.

All this seems like basic info that your regular viewers should be familiar with. You probably need an explainer on the phrase "born on third" (0:43) instead because some viewers may not be from countries that play baseball (a sport that is so uncommon that it has been removed from the Olympics, twice). "Third" means third base in baseball. To score a point, you have to go from home base, 1st base, 2nd, 3rd, and back to home base. If you start from 3rd base, it's much easier for you to score. So "born on 3rd base" is metaphor for those who have a big headstart that gives them an unusual (and maybe unfair) advantage over others. "Nth base" is also a phrase used to describe dating: "I've been dating for 3 months and I haven't even reached 1st base."

Let’s be honest though. Wealthy people do what Martha Stewart did every day and will never go to jail for it.

don't know about the boonies in usa but in canada with high job demands have real estate that is going up at insane levels. the cost of home ownership is one of the only ways to have a reliable asset. rent is insane. and now cost of home ownership on a freehold property requires 2 full time earners to squeeze by.

And Chelsea really does seem to walk the walk it comes to how she acts as a boss. I can't imagine many founders/CEOs would willingly want to earn less money than their employees

I love this but I want to point out too that I think there needs to be a discussion as to the benefits of pursuing higher education. I feel like there’s so much of this online these days, all this talk about how we don’t need education and just go to trade school. Education is more than its potential for higher wages. It teaches discipline, patience and persistence, humility and reasoning. Yes, you probably don’t need a college education to land a good job but I would surmise that most of the time, it still yields better wages and more opportunities. I have a bachelor’s degree from a foreign country and in the US, they treat me as if i only finished high school. I’ve had difficulties finding a job because of this. Also, I find it really off that the people pushing some sort of anti-education agenda are these billionaires who would be the first to scoff at anyone who dares apply to their companies without a degree. Makes you wonder why they’re pushing it too. All i can think of is, it’s in the wealthy’s best interest to have an undereducated population.

7:57 And this with why California and Prop 13 are so weird. My parents haven’t moved since 1976 and while their house is worth significantly more than mine, they pay half what I do in property taxes.

"Hamburger University..." LOL

Informative and always love a good baseball reference, you steeped up to the plate and hit it out of the park.

I’d like to add something about homeownership. I disagree that a home will only pay off when you sell it. What about when you have your home, well, paid off? Many people count on living in a paid for home in their retirement and not renting or having a mortgage payment forever. Many people also pay off their home early to free up that cash for investing. There are ways your home equity can benefit you that don’t involve selling your house.

This video needs to be broadcast everywhere. Shout it from the mountains.

So, the thing about homeownership, is that it is something you should deliberate on. Financial positives that I didn’t hear you say: 1) A stable monthly payment for decades, which can be negotiated down. 2) You can borrow against a home. 3) Tax deductions 4) You own a valuable asset that you can sell, or bequeath even if it’s not for a sky high price. 5)You can be kicked out of a rental within days of not having payment, you usually have months to get out of a home if things get dire. Some negatives, 1) You may have a nice home in a bad school district 2) You may have a neighbor from hell that you can’t get away from 3) The economy can drop like 2008 and you’re stuck in what you thought was your starter home.

I previously owned a home and now rent. I much prefer renting and have no intentions of going back. All the extra money I was spending on upgrades, repairs, and property taxes is now extra money I put into my IRA. I prefer having clear and predictable payments and can plan long term knowing my housing cost will be consistent

I do want to say this about home ownership though. If you purchase a home that you can afford on the income of one person, it does still give you a place to live as long as there is that one income. So if there are 2 incomes, it allows for more savings. Also, if the market artificially inflates, your contribution doesn't really go up by much. The risks of renting are HUGE: 1) Your rent can go up by hundreds of dollars per month when you renew your lease. 2) A mortgage in my area is often less than the average cost of rent 3) Income of 3 x the monthly rent requirement can price an apartment or rental home out of range for many people. 4) A rental home can be sold out from under you forcing you to move without ample time to secure new living arrangements. 5) A rental home can be seized by the IRS for unpaid taxes, leaving the renter on the hook (this actually happened to us) 6) A rental home can be foreclosed and auctioned off despite the renter never missing a payment 7) If you purchase a home for 200k, and the average home in your neighborhood goes up to 350k within 4 years (again, this happened in my current neighborhood) The higher home price makes homes harder to sell. Then if the market drops, people are on the hook for high mortgages on homes they can't sell, while you are secure in your home that you CAN afford, regardless of what the housing market does. If you are a renter, your rent could double in that same 4 years that the home value increases on paper. 8) If you live in an apartment, the complex can force a renovation that will increase the market value of your unit, also making your rent go up by 2 or 3 hundred dollars a month at lease renewal time. This can be affordable for many people. These are all ery real things that happen to people. I say home ownership is far more secure than renting. Many of us consider our home OUR HOME. The value of having a place to live that can't be taken from you or priced out of your range without your consent is HUGE. It means that when the rent on a 2 bedroom apartment is higher than my 5 bedroom house, my payment doesn't go up with market value. I still have a place to live. I have a family member who was renting for all of the reasons Chelsea discussed. That family member and their roommate we notified when it was time to renew their lease that their rent was going up $300. They agreed to this and signed the lease. A week later, they were told that their unit was marked for renovation and they would need to move to an already renovated unit for an additional 200 per month. They ended up having to find a different place to live in a very short period of time. Fortunately they both made enough to qualify for the rent in another complex in their area. This is NOT true for many people. This is something that will never happen to you if you own your home. If you own your home, you will be well aware in advance of any changes to your interest rate (ARM) or if your income drops making it hard for you to pay yur current rate. There are a lot of ways ownership is more secure, outside of the investment arena. You are not just investing in your finances with ownership. It's insurance against being suddenly displaced.

I work at a gas station and the lottery players give me the you can’t win if you don’t play line. I’m not totally down with that logic.

I agree with the point on job hopping. I almost doubled my take home pay after changing jobs from the one I had for 2 years. I'm sticking where I am for 3-5 years then I'll see if there's anything good out there. Changing too often also might not be the best look either.

Loved this video! So informative and I loved the account comparison at the end

Not having a house or a rent payment when you are retired is good. But people tend to forget that homes require maintenance, and the elderly are often not as spry as we once were. Hiring someone to do what we've always done ourselves is an actual cost. So make certain that bank account earmarked "Home Maintenance" is really healthy. And buy the house with your retirement in mind (no staircases or front steps, wide doors to allow wheelchair access, etc.) Also, taxes can shoot up out of the blue when our properties are rezoned because of economic shifts that couldn't've been predicted 20-30 years ago. I've driven by many an old farm house surrounded by newer retail complexes. Or the opposite happens. Your older, charming, wonderful-for-raising-children, thriving little community becomes a ghost town, or a slum. You want to move to a newer, more suitable home to be closer to family or medical facilities. This was always your plan, and you counted on selling your current house to make it happen. But there's no work there, or it is too dangerous there, and no one wants to buy.... Buy a house because you want to buy a house. Not because it makes your elder years secure. Because it doesn't really do that.

I would love to hear your ideas about how to save when you're self employed. I'm a graphic designer and my income fluctuates every month, sometimes by a lot! Just when I feel like I'm getting somewhere with my cc debt, I have to use them to buy groceries, gas and other necessities because I only had a few projects one month. It's very frustrating! I wish you could speak on fluctuating income and how to save/pay off debt better. Thank you for your info!!!

Thanks so much for your effort 🌹

7:00 hahaha great reminder! I’ve been laid off twice in only a 6 year career so I’ve learned that lesson the hard way. But I’ve also gotten to switch jobs for much higher pay like you mentioned 👍🏻

Correction: Insider trading is illegal unless you're a member of congress, if you're a member of congress it's a normal part of your compensation package

Listen Hamburger University is real. I have a degree from a state school but when I was in management at McDonald's we took trainings from HU.

Everyone should play around with a compounding interest calculator now and then. It can be eye opening to what is possible.

Love when you say "Look I have employees, I am different" Brilliant. Good video too :)

Ok I love this video and actually have digit but didn’t know about this option 🏃🏾‍♀️🏃🏾‍♀️🏃🏾‍♀️

This was a great practical video. My only disagreement is that most employers only give on average a 3% raise not 5%, and some employees aren’t always eligible for bonuses.

Always invest outside of your job, so that whilst you are working, your money is working for you.

The truth is more important than the facts. Access to productive information is what we all need to become successful in life. To possibly create wealth good enough to retire, proficiency is indeed necessary; causing most affluent entrepreneurs to acquire the synergy of wealth managers that offers high-net-worth operations that encompasses all parts of a person’s financial life. Get yourself an aid.

Offered sound like they say would you like this amount? Most companies however, make it seem like "this is what the job pays" like you don't get an opening for negotiation.

Can you make a video about investment accounts? Perhaps a things to know type video and how to go about choosing the right one?

Good info, thanks.

Fantastic lessons.

Hey Chelsea, I was trying to advise a friend just today on how to lower his taxes as it takes half his new 6 figure income. The only thing I could think of was to invest in 401k, traditional IRA and HSA as well as a one time trip to a well vetted financial advisor to uncover more tax incentives. Would love to see a vid of how to keep some of your earnings once you've made it. As it is, his quality of life has declined as a medical professional in state taxed Vermont.

Chelsea Fagan deserves her own TFD playlist! She's a co-founder and has a great personality

I’m a graduate of AACC. Took me 5 years plus working ft. Don’t ask how long it took to get the bachelor 🙄. It’s all with what you do with $. Start early and do automatic investing, match employers retirement contribution and leave it alone.

Wow... Almost 1 MILLION Subscribers !!!

@11:54 Now I feel like crap for going back to school in my 30s. Please don’t rub in the fact that you didn’t have to in our (my) face. 🤣 But really, I tried the “alternative route” and wasn’t going anywhere in my career. I got to a certain level and stayed stuck for years. I think either way, it like playing a game of chance.

13:20 - So glad to see a KZfaqr talking about college the right way. It's first and foremost an economic decision and a college and a degree should be judged on that merit. It's an investment and like any other investment, risks should be clearly understood and the reward should be judged on that.

That part about student loans and the lowest decile? I'd love to know more about that and would click a deep dive on that from TFD in a split second.

I'm a boomer, and none of my peers worked at the same company for thirty years. That was the generation before us

I love your videos!!

After this year's expose from Hbomberguy about plagiarism I've been thinking more youtubers need to have their citations credited properly and thankfully your 2 year old vid was already ahead on that point. Great video. I "knew" 6 out of these 7 ideas but just explaining them well is not easy to do. Your vid and with the backing sources makes my job easier explaining this to other people. Thanks.!

Excellent video.

You’re from Maryland? 👀 And of course, great video!

Hey, I went to hamburger university. It's what McDonald's calls it's manager training course. You can actually get transferable credits, although I didn't.

Liked for the baseball metaphor in the first 60 seconds!

I love this and your sweater chelsea

There has been many times in my family when someone passed and it has caused huge bills, never and inheritance. Very sad.

This video soothes my psyche. Being part of the sandwich generation where I’m building wealth for myself, my parents, and future children can feel daunting at times. But we can do it and it can be done by being a lazy investor.

Nice video, putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for

I’ve been at my fortune 100 company for 8 years. I’ve looked at BLS and I’m in the 95% for what I do. I look at job posts and the best I’ve found is a max salary equal to mine. I work from home 3 days a week, go in once and have Fridays off. I guess I’ll stay with my 3% COLA.

This is at least the fifth video I’ve watched where you say you need money to make money lol. Can you tittle your videos so we know which ones are for poor people.

The main reason I bought a home was to have a set mortgage instead of rent that can go up on a whim. There's no way I could afford the current rents in my neighborhood now.

Would it be possible to get options or recomendations for resources that do something similar to the TFD for Europe??

8) the market will go up forever because it has for the last 150 years

I just love you Chelsea. You embody such empowerment!

We need a video about how healthcare is more affordable outside of USA for Americans, even when that requires money fot flight, hotel etc still cheaper than here

Cold take... being born into wealth, especially from the 3rd generation and beyond, is more of a predictor of losing that wealth than building it.

Might be rude to ask in TFD comments - but - does anyone know of a similar type of channel that has financial advice in simple terms but is UK based? I love this channel but obviously so much of the American aspects just aren't relevant. I'd love to get more advice that's useful to my day to day, as well as watching this content for fun.

Great video Chelsea

Invaluable content.

Can you make some videos considering Indian subcontinent , like food prices here and Indian sharemarket

Not a criticism, just a curiosity! I'd love to see an explanation on the "bottom 50% average inheritance of $7900" that's a tricky phrasing to me as a data person. Is it if we take the average of the bottom 50% or is it the Q1 number, the median of the bottom 50%?

Might I add, seeing housing as an investment opportunity is something we should all stop doing as a society. This mindset is exactly what is making unaffordable for many owners and renters alike. Housing is a right, not a side hussle. Stop renting shit out and get a real job.

Maybe it's the cultural difference, but I have always viewed homeownership as a safety net. Down the line, when you're 70 you'd want to live somewhere that's fully yours and nobody can evict you on short notice. Of course, renting vs buying debate depends on where you live, and sometimes it makes more sense to rent. But I could never see a house simply be an investment, to me it's a base where you can go to even if everything else fails. But then again, I live in a country where 90% people own the property they live in.

I love her so sassy and cute with so much good info

What are your thoughts on UBI or a negative income tax?

If there is a lottery pool at work, I participate because I don't want to be the only one still left when everyone quits. I call that an insurance. Ha ha...

Time in the market beats timing the market 🤓

Don't be loyal to your company, brilliant advice!