You need $500. How should you get it?

Рет қаралды 537,921

15 күн бұрын

The (bad) options for Americans facing an emergency expense.
Subscribe to our channel and turn on notifications (🔔) so you don't miss any videos: goo.gl/0bsAjO
A 2023 Federal Reserve survey found that a third of Americans say that they don’t have the cash to cover a $500 emergency expense. So what happens if they need it?
In this video, we compare six of the ways Americans say they get money when they don't have it: credit cards, bank loans, borrowing from a friend or family member, payday loans, selling something, and going into overdraft. How difficult is each one to access? How does paying off each kind of debt work? And how much does each one cost down the line?
None of these options are great for someone who can’t pay an emergency expense. But some of them are a lot worse than others.
This video is presented by DCU. DCU doesn’t have a say in our editorial decisions, but they make videos like this possible.
Sources and further reading:
The Federal Reserve report: www.federalreserve.gov/public...
A range of interest calculators, if you’re currently weighing your options: www.calculator.net/financial-...
More on the predatory nature of payday loans from the Pew Charitable Trusts: www.pewtrusts.org/en/research...
Watch our full video catalog: goo.gl/IZONyE
Follow Vox on TikTok: / voxdotcom
Check out our articles: www.vox.com/
Listen to our podcasts: www.vox.com/podcasts

Пікірлер: 782

@nicolasbenson009 9 күн бұрын

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

@BridgetMiller- 9 күн бұрын

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

@Michaelparker12 9 күн бұрын

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

@berniceburgos- 9 күн бұрын

Thanks, I just googled her I'm really impressed with his credentials. I reached out to her since I need all the assistance I can get.

@zzzyyyxxx 6 сағат бұрын

This is a bot conversation and scam

@VladTheSour 5 сағат бұрын

nice scam

@laurabowles 13 күн бұрын

It's so expensive to be poor.

@qwikz28 13 күн бұрын

Even banks charge fees for people with less money and give interest to those that have a lot of it. I get the business justification, but I can't help but note the irony.

@alexpieters1354 13 күн бұрын

It’s expensive to not have discipline and live below your means.

@SayAhh 13 күн бұрын

@@alexpieters1354 It's rigged system. Before my time, but college used to be free or close to free, for example, in America. State schools, at least. Plus, every industry gets handouts but not the average person. If only minimum wage was tied to inflation and COL...

@SayAhh 13 күн бұрын

Are all my replies being censored? LOL

@laurabowles 13 күн бұрын

@@SayAhh I don't see any besides this one!

@cms8989 13 күн бұрын

How interest rates of more than 100% per year aren't illegal is absolutely beyond me. These things are basically designed to bankrupt poor people.

@DozIT 13 күн бұрын

Where I live (Canada) anything over a certain APR (50 I think) is criminal and considered loan sharking. Payday loans and pay later services seem to get around that by using a mix of service charges and absurdly high (but still legal) interest rates. I wish the government would do more, I wish we’d follow suit with the US’ current administration starting a war against ‘junk fees’

@oyuyuy 13 күн бұрын

In my country there's a maximum of 'Central Bank Interest' + 40% per year and the total cost (fees and interest) for the whole duration of the loan may never exceed 100% of the amount borrowed. I'd like to see it be even stricter, but it's something at least.

@ryantetreault3447 13 күн бұрын

The easiest answer is a credit card and you have a whole month to pay it off.

@DozIT 13 күн бұрын

@@ryantetreault3447 agreed, but this doesn’t work if you don’t already have a credit card, or have no available credit - a situation I wouldn’t find myself in but have seen it happen time and time again.

@DozIT 13 күн бұрын

@@ryantetreault3447 if only schools taught personal finance, what a credit score is, etc.

@Hororrex2 13 күн бұрын

The placement of that ad made me feel like it was a terrible payday loan option. Would recommend placing relevant ads away from negative statements, or atleast giving a clear transition.

@hw2664 10 күн бұрын

agree

@ipsilonia 10 күн бұрын

what an insanely sus ad transition

@SMNAviation 13 күн бұрын

Terrible ad placement and transition. Should have the commentator or letters make it clear an ad is coming up.

@loucam08 13 күн бұрын

A great reason to use sponsorblock, it shows the ad in clear green on the timebar and skips it automatically.

@SayAhh 13 күн бұрын

While I agree, I would rather that this video existed than not, and journalism is dying due to lack of funds, so I am okay if Vox needs to reach out to advertisers for money to produce videos and pay salaries. God know how many ppl have already been laid off.

@nesquik1001 12 күн бұрын

Agreed, there should also be clear audible cues for those who are just listening in. Especially if the ad kinda relates to the topic of your video..

@VAULT-TEC_INC. 11 күн бұрын

The video literally said PAUSE. What more do you want?

@VAULT-TEC_INC. 11 күн бұрын

@@loucam08Because tapping a few times to skip is too hard for you? Or just inserting your own ad for your app while complaining about an ad?

@georgetrammell176 13 күн бұрын

Fantastic video, but the unintroduced financial ad in the middle felt a little sneaky.

@LeBlafy 13 күн бұрын

This is why Sponsorblock exists

@samuell4004 13 күн бұрын

Absolutely. Super questionable

@simon762321 13 күн бұрын

i thought it was part of the video, as a example of a scam. Lol

@nohjrd 13 күн бұрын

@@simon762321Hahaha, exactly. It seemed like an ad for a pay day loan company.

@justin__roderick 13 күн бұрын

it’s rather weird to see Vox stoop to YT creator - type sponsorships

@joebradshaw8515 13 күн бұрын

Payday loans should be illegal

@xotwod3254 13 күн бұрын

6:04

@McCRBen 13 күн бұрын

Payday loans above a 30% interest rate per year should be illegal.

@SayAhh 13 күн бұрын

Cap maximum rate AND total amount in relation to original loan amount.

@zjones9876 13 күн бұрын

@@McCRBen that's the same thing as making them illegal because no lender would lend at that APR due to the risk

@zjones9876 13 күн бұрын

@@SayAhh aka outlaw payday loans because the effect would be the same

@SkyGravity137 13 күн бұрын

The car was the actual trap

@pcpxbotendorastermace9948 13 күн бұрын

Highways, too, cause you get trapped in traffic.

@takatamiyagawa5688 13 күн бұрын

Gotta love how the pixel artist clearly drew some sort of sports car - a nice-to-have type of car which will likely cost more to run than, say, a compact car. It's a sort of status-symbol that says "I have money to spare to spend on my car for fun".

@kingsleylaurent562 12 күн бұрын

Facts

@TheMikernet 12 күн бұрын

Best part is the car spewing exhaust from the front of the car 😄

@Thegingerbreadm4n 11 күн бұрын

@@SkyGravity137 Thank henry ford.....

@aryanuada847 13 күн бұрын

I remember the sheer relief I had when I got my first bonus at my new company in March. It was small since I started recently, but it meant I could finally cover an emergency expense. One month later my car broke down. The cost? My bonus....

@matthewdancz9152 13 күн бұрын

Yeah, owning a car is very expensive. Most jobs today don't pay enough to actually own and maintain one.

@orangeairsoft7292 13 күн бұрын

@@matthewdancz9152 doesn't help that infrastructure in the US is mostly car centric even in a lot of cities bar the obvious exceptions like NYC.

@andersdenkend 13 күн бұрын

Happens to me all the time. Whenever I think: "Oh, finally saved some money up..." something breaks down or an unexpected invoice comes in. 😂

@jmlinden7 13 күн бұрын

The bonus saved you from going into debt. That's a huge benefit.

@ryanthegoose9456 13 күн бұрын

@@orangeairsoft7292 and then the rent in those cities makes up for it

@warrengebhardt1145 3 күн бұрын

I'm favoured, Getting my own Truck has always been my Dream for my business. I just acquired 2 recently, earning $32K weekly has been really helpful. I can now give back to the locals in my community and also support Charity Organizations. I really appreciate your videos

@patrickgeorge4374 3 күн бұрын

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

@jennifermontague3213 3 күн бұрын

I'd really like to get into crypto Investing. I have about $145k set aside, but I don't know anything about this market. Would you please provide the best approach to make money as well as a trustworthy resource for advice? Your help would be greatly appreciated.

@alexlucas7264 3 күн бұрын

The very first time we tried, we invested $1000 and after a week, we received $7500. That really helps us a lot to pay up our bills.

@richardsami9493 3 күн бұрын

Still regret that I sold my bitcoin early last year, even after my colleague insisted we shouldn't. Please Is Bitcoin still a safe buy to outperform the market this year? I still kept my money in the money market and with over $120k maturing soon, I plan investing well in it. Here for ideas

@martinvaisman8578 3 күн бұрын

As a beginner investor, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Deborah Davis. A widely known crypto consultant

@ziqi92 13 күн бұрын

My best friend from high school got hit with a double whammy a few years ago: medical debt and legal bills. Why? Husband got shot while doing a delivery and was falsely accused of being a thief. They’re working class in TX of all places and so borrowed money from me (after really struggling for a year) to pay off their debts. They profusely thanked me and are currently paying me back gradually, but it’s pretty obvious that they’d literally be on the streets and likely dead from exposure if I hadn’t stepped in. (Their car was compounded as crime scene evidence when her husband got charged and couldn’t afford the fees to get it out.) America can do better than this.

@dormikdelron 13 күн бұрын

Please don't put ads in the middle of short videos. It's compromising the flow and watchability of your videos. It's very distracting. People shouldn't get an objectively worse experience just because a sponsor tells you to.

@alericjohansen6775 13 күн бұрын

i know, right! Put the sponsor thing at the start or end of the video, not the middle. also, i have a sponsorblock, so i didn't even see the ad. i only realized it was there when i went to the comments. ads are the devil! If ads weren't so bad, and could get you malware, or scam you, i wouldn't have an adblock or sponsorblock. it's getting ridiculous with this stuff!

@RobinRaye-np3vw 13 күн бұрын

Not the point of the video, but this is a reason why car dependancy contributes to poverty When you design your society so that everything is super far away, amenities are in a completely different area from houses, public transport is underfunded, and huge crisscrossing highways make walking impossible, you end up forcing people to own a car just to survive This video could've been about any kind of expense, but my point still stands that poorer Americans would be less vulnerable to debt traps like this if they were allowed to limit major expenses, like car payments and repairs

@pan2aja 13 күн бұрын

Not to mention insurance

@jchastain789 13 күн бұрын

There's also an argument of time. We have cars in this day and age and roads to get to far away locations waaaay faster... what if we used dirt trails and horses still...

@eklectiktoni 13 күн бұрын

@@jchastain789 Or what if we had efficient, safe, affordable mass transit like high speed rail the way other developed countries do?

@jchastain789 13 күн бұрын

@eklectiktoni I could see realistically how that could work,, had the govt build rails instead of roads reaching every town in America...

@jchastain789 13 күн бұрын

@@eklectiktoni rails are also very limiting.. efficiency is key. What if you wanted to go to the top of a mountain and see the view? Rails couldn't reach as many places a car could.

@SeanMather 13 күн бұрын

I feel like DCU might not be an appropriate sponsor fit for this video. Whole thing feels like an ad now.

@do.not.trust.squirrels 13 күн бұрын

That's the feeling I'm left with. It's like we forgot to click "skip" and all watched the same KZfaq ad.

@billhicks8 12 күн бұрын

a credit union advertising to you is not a bad thing, they are a legitimate alternative that try to do everything they can to make loans easy to pay back. More people should use them.

@bingoberra18 12 күн бұрын

@@billhicks8 Or save up so they dont have to borrow money at all.

@25oddlyenough 13 күн бұрын

Asking money from those you know always has a cost. It may not be monetary though.

@RachelDavis705 13 күн бұрын

I feel bad that 1/3 of people can't just pay for something that's $500. That makes me sad in a country with billionaires who could wipe their butts with $500. Also, I love the pixel art and video game style of this video.

@alexpieters1354 13 күн бұрын

You feel bad that they lack discipline? Not having an emergency fund is a lack of personal discipline and accountability.

@davidrodriguez5804 13 күн бұрын

@alexpieters1354 they will give you all the reasons in the world and blame the government for it, but they will never blame them self for they bad choices.

@davidrodriguez5804 13 күн бұрын

@@alexpieters1354they will give you all the reasons in the world and blame the government for it but they will never blame then self for all their bad choices.

@RachelDavis705 13 күн бұрын

@@alexpieters1354 Spoken like an ignorant clown. The majority of people who are bankrupt in this country had a serious medical circumstance, like an accident or an illness that wiped out all their savings. It's easy to spew baseless nonsense from your cushy little bubble, but maybe you should have a tiny clue as to what you're talking about first.

@crystalseth97 13 күн бұрын

@@alexpieters1354 More like lack of good opportunities and money gives you exactly that

@xjokunen 13 күн бұрын

Been saying this for a while! Poor people dont have the luxury of making better financial choices. For example: If youre struggling to pay necessities, you also probably cant pay for a bigger package that would last longer and saves money in the long run.

@blondie7240 9 күн бұрын

Truly poor, yes I agree. What I’m sick of is all the people who pretend to be poor because they don’t have the self discipline to save money and instead live paycheck to paycheck

@whothou 5 күн бұрын

If you're struggling for necessities then it's either time to downsize, find a new job or move. People are quick to go into debt for a car or if a sudden expense comes up. Would make more sense to go into debt for a move to an area where you can come out positive after pay and bills come through.

@qwertyuiop6792 13 күн бұрын

Stopped watching after that financial ad - pretty low

@billhicks8 12 күн бұрын

I like how nobody here knows what a credit union is, even while it's being explained to them.

@Sirrajj 13 күн бұрын

USA is debt ridden country, so much problems around debts & loans, corporation lobbyists freely prey on citizens, student loans are huge & on top of all Americans are chronic buyers who love to spend what they don't have through credit cards & loans...

@LeoOre2001 13 күн бұрын

Tell me about it. Our credit score goes down when we don't borrow money🤦🤦🤦🤦

@shivamkumarshrivastava5182 11 күн бұрын

@@LeoOre2001 You're joking right? 😶

@dosadoodle 13 күн бұрын

Overdraft fees are scheduled to go down to $8 in the US as early as June 1st thanks to a new rule being pushed forward by the Consumer Financial Protection Bureau, so hopefully this video will be outdated in just over a month after being published.

@coolboss999 13 күн бұрын

I did not know this! Thanks for letting me know

@TheMightyAgency 13 күн бұрын

Don't worry, with the wrong administration in the WH, it will be reversed. The poor who can benefiting from this still voting for the wrong people perplexes me to no end.

@LFTRnow 13 күн бұрын

FYI - BIDEN is behind this, as well as the reduction/elimination of other "junk fees". Remember that when voting. Most people agree this is a very good thing and helps the poor and middle class the most.

@4seeableTV 12 күн бұрын

Republicans have been trying to shut down the CFPB since its inception.

@Mr.Ramirez95 11 күн бұрын

Joe Bidens America.

@Seantherightway06 12 күн бұрын

I learned first hand how terrible payday loans are when I was 19 years old, and I’ll never make that mistake again. What started as $1000 ended up being almost $3200, and narrowly avoided losing my truck. Luckily, I had someone to help bail me out of it, but a lot of people do not have that option or support. I just wish that same support system had done more to educate me on the downfalls of credit/lending prior to that.

@MoeThermodynamics 13 күн бұрын

Imagine you didn't have to own a car to move efficiently around your city/country, and that you didn't have to pay exorbitant amounts of money for basic health care. How much would people save then?

@me-myself-i787 13 күн бұрын

Very little, because the increased taxes would offset the increased healthcare costs, and the company building the railway will probably charge only slightly less than cars cost so they can get their money back faster. Although, there are buses available for shorter trips.

@desertbutterflypic 13 күн бұрын

@@me-myself-i787 Canadian here (not even one of the best countries at implementing either of the mentioned things, by far)! - People who make little enough money to have trouble saving pay relatively little or even no tax (yes, that’s counting all of the taxes) - For a single person, monthly transit pass incl. light metro costs less than monthly gas alone, let alone car down payment, payments, maintenance, and insurance.

@michaelparks3106 6 күн бұрын

@@me-myself-i787 Just not true about "increased healthcare costs". The US already pays more per person for healthcare than any other industrialized nation. Besides the actual healthcare costs we also have to pay for the profit for the drug and medical companies. On top of that, we have to pay for the profit for the medical insurance companies. Why do you think the drug and medical companies spend billions on lobbying our government for favorable legislation every year? Railway passes in Europe are very affordable, that's why trains have such a high usage there. The facts just don't support your comment.

@Square_Peg 13 күн бұрын

I have an emergency fund, but I'm also 46 and have things more together now than I did when I was younger. I had to rely on credit cards for unexpected expenses back then. Now I use a credit card for everything to get the points and I pay it off every month.

@faithpurselover3932 13 күн бұрын

Same here. I feel like poor people are shamed for just not having enough funds. I have an emergency fund and pay off my credit cards every month, thus not paying interest. But it wasn’t that long ago that I didn’t have savings because there wasn’t any money to save and I used credit cards to cover expenses I didn’t have the money for.

@princevanced 13 күн бұрын

as someone who has little to no knowledge about how all these work, this kind of video helps me a lot. the kind of things i wish taught in school

@esselsid3727 13 күн бұрын

2:39 i literally didn't realise this was an ad 😅

@CF-lw4zy 13 күн бұрын

I hate to be the bearer of bad news, but sponsored videos have been around a long time.

@Sigma_Male_Anti_Female 13 күн бұрын

@@CF-lw4zy Okay? Don't care didn't ask.

@SidSparnos_AIEnthusiast 13 күн бұрын

@@CF-lw4zy too bad you're the bearer of bad news , that how you spend your time in your mom's basement when you're not jerking off?

@oyuyuy 13 күн бұрын

@@Sigma_Male_Anti_Female Kid, you're not even part of the conversation, why are you so mad? 😂

@Sigma_Male_Anti_Female 13 күн бұрын

@@oyuyuy This is the Internet. You can join any conversation you want.

@PeterNielson 12 күн бұрын

There's also the problem where people who are on SSI are not allowed to save more than 2000 at all without losing benefits unless they were disabled before the age of 26, and it creates a whole other problem that effectively forces credit card use, as payments and benefits hardly cover living expenses in much of the US

@1237tnb 13 күн бұрын

I'd pay with cash, but fixing my car has literally never cost only $500. Try multiplying that number by 3 or 4. Lol, it was going to cost $500 to fix my oven when it broke, and it would have cost the same just to buy a new oven (thankfully it was still in warranty).

@orangebeagle3068 13 күн бұрын

I don’t know where you live or what type of car you have, but that sounds like way too much! Go to someone else.

@1237tnb 13 күн бұрын

@@orangebeagle3068 I drive an old vehicle. I know I pay a premium, but I'm happy with where I go.

@johnchessant3012 11 күн бұрын

I just don't get how politicians (in either party) can claim our economy is good when there are so many people facing such a precarious situation after just one emergency expense. Also, the stress from this can't be good for people's mental and physical health either.

@a1white 12 күн бұрын

It’s good the way you explain how much more expensive credit cards are than agreed loans. The compound interest (interest paid on interest) is a thing that many people don’t understand

@___g 13 күн бұрын

The stealth ad that Vox has been doing lately are dubious and speak to how little watch time people are actually giving. I would be curious what the difference in watch time is versus the actual total time and see if the total time minus the ad read equal average.

@jessy1982 13 күн бұрын

I recommend the SponsorBlock extension. It skips the ad and shows the actual video time minus the ad time. SO with that extension my "average time" is actually the time without the ad.

@RachelDavis705 13 күн бұрын

That's all videos on KZfaq, it's a graph sloping downward.

@CreativeMovieArts 13 күн бұрын

They need money, chill out

@luisfilipe2023 13 күн бұрын

This is why having an emergency fund is so important

@do.not.trust.squirrels 13 күн бұрын

It is. It's just that it's difficult to have one when you have no money left after bills and cost of living expenses. Low income individuals tend to own older cars and large appliances, which break down more frequently. If you are low income and have a medical condition, but do not qualify for medical assistance, income after living expenses goes to deductibles, copays and coinsurance. I could keep going, but yeah, if you can afford to have an emergency fund you should definitely have one.

@takatamiyagawa5688 13 күн бұрын

@@do.not.trust.squirrels If you don't have an emergency fund, then you're living beyond your means, and if you can't live within your means, what happens when your balance hits zero is not really the root of the problem.

@Liam___ohara___ 13 күн бұрын

As my boy Caleb hammer says: Not having an emergency is an emergency

@someshyv 13 күн бұрын

$500 isnt even a fund. It's spare change

@luisfilipe2023 13 күн бұрын

@@someshyv the recommendation is 3-6 months worth of expenses

@DiN0x33 13 күн бұрын

I did payday loans yearssss ago and learned my lesson. Never again.

@NotParticularlyWitty 13 күн бұрын

I worry for the people for whom the very obvious integrated ad with a watermark was somehow something they didn't notice. Those people are probably the ones who the payday loan cabal are licking their lips at.

@Generic321 13 күн бұрын

Car repairs will cost you $5,000 not $500 this ain’t the 90’s.

@Big-Government-Is-The-Problem 12 күн бұрын

false, my car that gets 40mpg cost only $5000 and there were plenty of options for much less, but since im frugal, im a minimalist, and i have a budget, i had $5k or more to spend. if your car is costing you 5k to fix, youve done something majorly wrong in buying an expensive car or you've had a catastrophic issue that costs more to fix than the car is worth. let me guess you have a $40-60k truck to impress randoms and you dont actually own a ranch or business that would require a truck?

@matthewboyd8689 13 күн бұрын

The problem is that instead of workers getting paid the majority of the profit it goes yo the CEO Used to be they got 10 times their employees, now the average is 350 times That's like saying, why pay my workers $30,000 and myself $300,000 (better than a surgeon) when i could pay them $15,000 and myself $5,000,000. After all they're working for minimum wage and I'm a millionaire so why not? Another example is the Evil stepfather that planned out the entire vacation and then says because of that he doesn't have to do any of the setting up of the camp and gets to keep all the trinkets. Everyone understands how unfair that is, but yet we call CEOs deserving of them deciding to have a larger slice of the pie every year because "THEY earned it" and not yhe workers

@nothere2994 13 күн бұрын

Surgeons make a lot more than that, the Glassdoor/BLS reports hide that. Most make 400k minimum, and the neurosurgeons my father works with make 1 million annually, and receive a 500k sign on bonus when hired.

@__-ln7sb 11 күн бұрын

@@nothere2994"erm, akshually..." honestly, I'm impressed by how many lattes you can balance on your head for the c-suite

@nothere2994 11 күн бұрын

@@__-ln7sb Enjoy your shift at McDonald’s! :)

@dsjsi 8 күн бұрын

@@__-ln7sb When you look at the actual financials of companies, ceo salaries are really not that big of an issue. Worker pay is always the number 1 expense for every single company.

@cihant5438 13 күн бұрын

$1 DOLLAR expense, a coffee!!!! Hahahahahahahah

@kosephdrums 13 күн бұрын

"Start an emergency fund" Translation: "stop being poor"

@ThatEllenGirl 13 күн бұрын

I wouldn’t say that. Even at my lowest in terms of finances, I’d set aside $5-10 each paycheck. It would automatically go into savings so I wouldn’t see it in my checking. Even a very small amount is a bit less you’d have to borrow in an emergency.

@kosephdrums 13 күн бұрын

@@ThatEllenGirl I'm not saying it's bad advice. But many people live paycheck to paycheck and constantly dip in the red, just covering basic needs. The math doesn't math. Your lowest might not be someone else's lowest.

@eklectiktoni 13 күн бұрын

Yes and no. I think the point is IF you can start one, don't procrastinate - DO IT TODAY. Obviously though, some people just can't.

@me-myself-i787 13 күн бұрын

$7.50 per hour × 40 hours per week × 4 weeks per month = $1,200 per month Subtract $1,000 per month for expenses and you're left with $200 per month, so you'll have $1,000 saved within 5 months. And it will take you just under a year to save up enough to pay your deductible (assuming your deductible is $1,763, which is the average). If you put the money in the stock market, you'll save up the deductible even faster.

@eklectiktoni 13 күн бұрын

@me-myself Where I live (in a relatively moderate cost of living city in the southeastern US) rent alone is $1000. So you'd have $200 left to pay for electricity, water, food, medicine, gas/bus fare for work. Where's the leftover money?

@plusHEY 12 күн бұрын

people should be able to use public transport in the first place

@williamnash9900 13 күн бұрын

Simple solution. Live in a country with good public transport, then you won't need a car in the first place

@doujinflip 13 күн бұрын

Even in car-centric places like Dubai and Doha it’s a huge savings to take its public transit. Gas might be cheap but valid insurance and the car itself not so much.

@kennethvanoosten3202 12 күн бұрын

Seeing this makes me feel so relieved to have plenty savings in the bank. Debt of any kind scares me more than anything. Feels like a modern form of indentured servitude when lenders are allowed to charge ridiculous rates and trap people in poverty without consequences (the same way prison labor is essentially modern slavery).

@gemini8project 13 күн бұрын

Well, that’s one way to earn $500

@YoungGandalf2325 13 күн бұрын

"earn" 🙄

@wilsonli5642 13 күн бұрын

IMO the thing to take away from this video is, apply for a credit card before there's an emergency, and pay it off as quickly as you can.

@Maddison809 11 күн бұрын

Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!.

@AlfrezaAndi-tq6bd 11 күн бұрын

Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!

@scpt2 11 күн бұрын

Do you mind sharing info on the adviser who assisted you? I'm 39 now and would love to grow my portfolio and plan my retirement

@Maddison809 11 күн бұрын

She’s OLIVIA SULLIVAN FINANCIALS

@Miguelllll172 10 күн бұрын

She's definitely going to help you. All you have to do is look up her full name and reach out to her

@Filipediincredible 10 күн бұрын

Getting Olivia Sullivan to help me really helped me clear all my debts. I started with what I have left and it's been the best decision I ever made

@pauloquinto 13 күн бұрын

The first problem here is the car.

@seanhepner7813 11 күн бұрын

Emergency funds are so important, I wish everyone understood this!

@yuvalne 12 күн бұрын

as someone who's not from the US, this is terrifying to look at. like my country is also bad, but it's definitely not this bad.

@Banane1321 13 күн бұрын

These are by far the best short educational videos on youtube, I especially love the animations.

@lnteIligent 13 күн бұрын

So this is why I see great cars in the US on every video that shows a parking lot / city? I'm european and I'm amazed so many americans have expensive cars and when you look at them, they're clearly struggling. In my european country, if you can't afford an expensive car, you can't buy it / lease it, banks won't lend money either since they know you can't pay it. Then why do american banks borrow like 80k for a poor person to buy a car and knowing they won't be able to pay it? Makes no sense as an european

@TheFireGiver 13 күн бұрын

That is part of it. Americans legitimately do make more money, but you are correct that many borrow to live above our means. It's a cultural thing because we focus so much on status symbols like luxury cars. That being said, the US also has millions of millionaires who don't do that. They drive that old 2016 Sonata and laugh their way to the bank. Essentially the US has set a trap for people to fall into poverty. The only way to avoid the trap is living below your means and saving the difference. Most Americans don't understand that though because of lack of education/social pressure.

@bimasetyaputra8381 13 күн бұрын

Lack of public transport in the US means that its sometimes made owning a car for work nearly mandatory.

@Trumani 13 күн бұрын

@@TheFireGiver Hey my 2016 sonata is not old, haha.

@pan2aja 13 күн бұрын

Lack of public transport and city designed for car (you absolutely cannot go anywhere within walking distance)

@sirjmo 13 күн бұрын

There's a huge difference between owning a ten thousand dollar car and a thousand dollar car. Don't spend what you don't have

@liams923 9 күн бұрын

I'm not saying this to gloss over the other problems discussed in the video... but so many Americans needing cars they can't afford is a problem in it of itself. We need to start building good transportation infrastructure other than roads

@pepperonipizza6115 13 күн бұрын

Moral of the story: Don't ask any financial institution for help, unless you know you can pay it off and earn credit.

@DemoEvolvedGaming 13 күн бұрын

Actually this video does a really good job of telling me I should save up some money so I can start a Payday loan company....

@user-gi7vi9gm4t 13 күн бұрын

people complaining about a "stealth" ad. meanwhile the super obvious watermark & transition not to mention the end of the ad where it is like the most obvious thing ever. the only reason i did not notice is because i run sponsorblock and did not see it

@Honeneko. 13 күн бұрын

I think PayPal was the first to let me know that minimum payments didn't cover the interest. Always pay a little more than minimum when you can.

@ckhound1 13 күн бұрын

One thing to mention about Credit Cards, many card companies, if you have a card already, will give you 0% interest periods. Discover, every time I have asked has given me 18 months of 0% apr. Different companies may not give you anything, but its definitely something to ask if something has happened in an emergency.

@gabedarrett1301 12 күн бұрын

This is why personal finance should be mandatory in high school

@evolancer211 13 күн бұрын

Back when I was an addict, payday loans were my best friend lol

@ThoughtCog 13 күн бұрын

Even if you have the cash sitting in the bank, just put it on a credit card and pay it back later. Don't wait until your car breaks down to get a credit card. Get a secured card if you need to raise your credit score.

@LastSider 8 күн бұрын

Its so important to have an emergency fund and a budget.

@PrincessSachiko 13 күн бұрын

Thanks, this is a great video. (And I love the video game-style animations!) I like how the video clearly explained these financial concepts that honestly... I didn't really understand before. I didn't learn these things in school. Hopefully schools today are teaching these things but I don't know. Everyone needs to learn these financial basics so they can be aware of the dangers of being poor and falling into debt. Once you're in a financial hole, it's hard to get out. The best thing you can do is borrow from family or friends, but that can potentially strain relationships. Still, it's the best option out of these. Selling something could work out well, but how long will it take to find a buyer and how much will they pay? So that can be tricky too. My recommendation for people struggling financially is to start an online side hustle. There are plenty of ways to freelance online and it can be an additional source of income if your main one isn't enough. Freelancing online is not easy, trust me, but I'm saying that it can work if you do your research, put in a lot of effort, and stick to it consistently.

@RutiYT 13 күн бұрын

I would borrow directly from my 401k. Usually

@fkutube1234 13 күн бұрын

Great Topic, many people Badly in need of this guidance...

@wowsuchname1939 13 күн бұрын

Overdrafts are a brilliant facility when used responsibly.. Mine is 0% interest up to a pretty high number. Can be a bit of a trap if used irresponsibly though. I am in the UK though, overdrafts seem a lot friendlier over here. Even if I go over my arranged number I have a grace period before any fees are charged.

@PSNDonutDude 13 күн бұрын

Most financial items are great if used responsibility and terrible if used incorrectly or coming from poverty or low income where paying down debt is difficult.

@wowsuchname1939 13 күн бұрын

⁠@@PSNDonutDudeabsolutely, I got trapped in my overdraft for a while after having to use it for an emergency. Spent ages getting out of it, put me in an odd space psychologically where I just gave up trying to fix my finances as it was there and cost me nothing. But equally saved the day when I needed it, wanted to cut it but just learned form the experience and build up an emergency fund (which is ultimately the only true answer to the question this video poses..)

@tpower1912 13 күн бұрын

In the UK too. I don't believe we get charged when we use overdraft do we? Been a while since I used it.

@wowsuchname1939 13 күн бұрын

@@tpower1912depends on your terms. Varies bank to bank, it’s never a high amount though, I think there are laws in place surrounding overdraft fees.

@a1white 12 күн бұрын

Yes, if it’s an agreed overdraft before. The UK banking rules were changed for overdrafts a few years ago to stop extortionate overdraft fees (though banks then cut interest rates on current accounts and started to charge more for premium accounts to claw back their revenue from other streams!).

@NicksDynasty 13 күн бұрын

Take the bus, train, bike and walk until you save up the $500 if you don't have it

@PrincessSachiko 13 күн бұрын

A lot of people can't get to their workplace with buses, trains, bikes, or walking. They have to have a car because there's no other way to get to work.

@loucam08 13 күн бұрын

This video is for Americans, the way their cities were built requires cars

@NicksDynasty 13 күн бұрын

@@PrincessSachiko The vast majority of people can use these methods but never think about anything else besides the car. Most Americans have a car only brain Suburbs yes, many band public transit

@NicksDynasty 13 күн бұрын

@@loucam08 America is all about car dependency unfortunately

@NicksDynasty 13 күн бұрын

@@PrincessSachiko The vast majority of people can use these methods but never think about it. Some suburbs with banned transit and rural areas are the issue Americans are just car only people at heart

@florianfuchs5788 11 күн бұрын

Under German law, an interest rate may be considered usurious if it is either double the market rate or exceeds the market rate by 12 percentage points. With a market rate of 6.5%, the usury threshold can be calculated in two ways: either double the market rate, yielding 13%, or adding 12 percentage points to the market rate, yielding 18.5%. The lower of these two values, 13%, is the maximum permissible interest rate before it is considered potentially usurious. If a loan agreement includes a usurious interest rate, it is deemed immoral ("sittenwidrig") and legally invalid.

@jimmysieng2563 13 күн бұрын

There's gotta be a effective way to teach financial literacy in our society....

@arthurshangareev7202 10 күн бұрын

2 things lifelong poor people have in common: -- external locus of control -- priority of subjective hapinness over objective success (competition-aversivity) I have friends of the same age with the same socio-economic background and when I try to persuade them to be more career-oriented and competitive, all I hear is that this is not their priority. They are doing good (but can do better) financially, but they enjoy spending their free time on hobbies. And I just cant argue with this kind of answer. However, once they decide to start a family and enter middle age, I already imagine how their children will be envy of mine. Also, once I moved to the 1st world country for education, I usually hear how a lot of undergrads who was born here take gap year in their studies for "traveling" and it's considered normal. All I can say is that young generation getting more and more naive and self-indulgent. Millenial from eastern europe here

@GioEarthling 13 күн бұрын

john oliver did a great piece for this a while back

@BenjaminJex 12 күн бұрын

I was rear ended in recently which wiped out the $2000 I had set away for such a case. I’ve been looking for any basic retail job for more than a month now and haven’t heard back from anyone, and now I’m out of money. 2 days ago I suddenly needed to replace my spark plugs, coils, and an engine mount, which cost me 800 putting me $500 in credit debt. I also have $800 in taxes due in 2 weeks, and again, even Target turned me down with my Bachelors of Science. I’ve had to rely on my family who are not in a good position to take care of this right now, I don’t understand how people without my education and support network are supposed to survive if I can’t do it even with the resources I have.

@cosmosnomad 13 күн бұрын

I mean, got there in the end, but really you should have included an emergency fund as an option right from the beginning. Not everyone will make it to the end of this video

@pioneer7777777 13 күн бұрын

This probably could have been just an image of a graph.

@pierrejean5095 11 күн бұрын

I understand things can get very tough for some people,that why when people come to borrow money from me,I usually it always give them the money 💰. But,there is a problem. I usually or never get that money back. For instance, someone borrowed $1000 from me and said will give 2 weeks after. Well,it's been 6 years and still waiting for it. Same for another $500 ,two $$300, a few $$100. Never get them back.

@JustJulyo 8 күн бұрын

Can't believe loan sharks are much more ethical than going to the government for help

@williamwilson6499 13 күн бұрын

$500? I use my credit card to get a percentage back and pay off the balance before finance charges kick in. Like I do with 95% of my spending.

@BenjaminMcLeod815 13 күн бұрын

I’m 55 and have been retired for 6 years. I have a 130K annuity, plus a 401k depleted to 150K of money that I’m not sure what I can do with at this point.

@kurttSchuster 13 күн бұрын

Not a great April so far but if you step back and actually look you will see the S&P 500 was up for the first Quarter. In the last 30 days, my IRA saw a gain of $70k. You might consider financial advisory if you're experiencing significant drop.

@eastwood224 13 күн бұрын

Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.

@BenjaminMcLeod815 13 күн бұрын

That's fascinating. How can I contact your Asset manager?

@BenjaminMcLeod815 13 күн бұрын

Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

@525Lines 13 күн бұрын

Never in my life have I encountered 12% interest. $565 on a $500 loan sounds great. Just never experienced it. People been paying off their student loans for 20 years and still owe ALL the principal. I suppose this is good info if you're 16 and in a universe that isn't here.

@kpro8908 12 күн бұрын

The video specifically mentions that few banks issue personal loans for just $500, the point was to illustrate if you *could* get a bank loan, it would likely be at 12%. 12% is a perfectly reasonable interest rate in this market, and would’ve been on the high side 2 years ago.

@TheMazTheSpaz 13 күн бұрын

I’ve come to terms with my 401(k) loan being my “emergency fund”. Then not solely relying on that being my only retirement plan. Having other retirement plans like a roth ira, retiring at max social security age, HSA, paid off house, etc.

@Knight_of_Helles 13 күн бұрын

Like how do u live if ya don’t got 500 bucks available to spend?

@NiggletFarm 13 күн бұрын

Da gubment

@tpmiranda 13 күн бұрын

What if you have money applied? Like in a savings accounts, national debt, gold, pension fund or others? What are the costs associated with those? And the risk? And how much you stand to lose in the long term if you rely on them? And how could taxes bring you extra expenses later in the year?

@Bobbleoff 11 күн бұрын

400% interest on a payday loan is nothing. In the uk I’ve seen interest rates of 3000%

@JJacobs803 10 күн бұрын

I'm at the point where I'm not borrowing bc its too expensive. Think about your future income

@shavitea2399 12 күн бұрын

i needed this thanks

@arcturusmeow1290 10 күн бұрын

When you realize this video is a 6 min ad setup

@ThePeterDislikeShow 5 күн бұрын

You forgot that in modern economies, one person's savings is another person's debt. So if you manage to save $500 in your emergency fund someone else out there is $500 in debt somewhere.

@HopelessCT 4 күн бұрын

We live in a world where people buy what they cant afford out of pocket. This is what drove the prices up.

@toritomarven 12 күн бұрын

This is so informative thanks for sharing

@jonesfrederick1228 12 күн бұрын

The introduction of a Bitcoin ETF marks a groundbreaking moment in the cryptocurrency world, merging digital currencies with traditional investment methods. This innovation could stabilize Bitcoin prices and broaden its appeal to a wider range of investors, potentially increasing demand and value. At the heart of this evolution is Sarah Jennie Davis, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment

@amaeryamidus 12 күн бұрын

The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH... Stock)

@udeikechukwu2348 12 күн бұрын

How please I'm pretty new and feel I have much to learn, I would appreciate if you show me how to go about it?

@jonesfrederick1228 12 күн бұрын

She is really a good investment advisor. I was privileged to attend some of her seminars. That is how I started my crypto investment

@terry5468 12 күн бұрын

I have heard about her excellent trading expertise in CNBC news, guess she's more popular in United States

@valleygray 12 күн бұрын

I realized that the secret to making a million is making better investment.

@0brooo 3 күн бұрын

Something that’s not talked about is how credit cards are great if you can pay them back within them time frame. If you genuinely believe you can pay back the debt within your next pay check a credit card is great.

@SMUGGLING-SCHOOLBOY 13 күн бұрын

DOES VOX PAY A GOOD LIVABLE WAGE 👀🤔

@jockelocopajdoman 5 күн бұрын

1/3 of USA population don't have $500 at this moment. Good job

@stevengravelle2150 10 күн бұрын

I’ve been a DCU member for over 20 years and they are the most honest, straightforward company I’ve ever done business with. Credit unions are better than banks any day.

@wixostrix 13 күн бұрын

Wow I never new the way predatory payday loans worked but always heard about how terrible they were. I had gotten quite a few when I was younger and they were great. The last one I didn't pay on time and set owed for almost a year. I eventually went to pay it and it was still the original cost. Maybe I was lucky 😌. It was in California though so I'm sure there's some sort of regulation for it 😅.

@arlowelee 10 күн бұрын

I know this doesn't relate to the message of the video, but I'm super privileged to have the resources to fix my own cars. I've for sure saved over 15 maybe 20 thousand dollars in labor over only a few years. I implore people to do the same if they can :)

@mirauxd9512 9 сағат бұрын

I have a question: Couldn't you theoretically open a new bank-account and overdraft that one? Then you will never use that account (= no fees = 500$ stays 500$). Is that podsible aswell?

@liamhodgson 13 күн бұрын

0:15 “there are a lot of bigger picture reasons for that, but this video is going to look at something really specific.” This should be in the channel description. No shade, but worth pointing out because in my opinion this is the mindset difference between “effective” altruism strategies and those of solidarity, justice, and mutual aid. Edit spelling

@darexinfinity 8 күн бұрын

So glad to see my local payday business go out of business.

@bjaminH 9 күн бұрын

This is why not having an emergency fund is an emergency

@welsthe3rd 13 күн бұрын

Have an emergency savings for a car before buying a car!!

@a1white 12 күн бұрын

To be fair they do say this is the best option

@rosarodgers7539 2 күн бұрын

There's an odd overlayed tapping /game (like Pac-Man) sound/noise on this video post

@Dara-wk5ty 13 күн бұрын

I don't have a lot of my money at the end but thats because a huge chunk goes into stocks So I would just sell off something

@user-xg7dh3lu1i 11 күн бұрын

your video is what makes me understand the market more each day, and change from my emotion involved to be a signal and reason for point of entering than I was before thanks to you