You Will Never Have Your Finances In Order, Here's Why - How Money Works

___________________________________________________________________________

I want to start this video off on a positive note.

You will never be rich!

It's not something that people hear enough. Based on the demographics of people who watch my videos most of you are from advanced countries so you will be doing well by global standards but you still won't be rich

The one percent is exactly that one percent of the population even if you do everything right even if you save regularly even if you invest wisely even if you binge watch finance channels and even if you were lucky enough to be born in a country with some degree of social mobility you probably have a 1 in 10 chance of making it at best

So why aren't we taught this more often? Well because people don't like to hear it it's much more fun to binge watch channels or read books that promise that if you do this you will be rich if you learn to manage real estate you will be rich if you turn credit cards you will be rich if you live below your means you will be rich it's easy to see the appeal but how many works is where dreams come to die so to kick off the new year i want to look at a few reasons why you will never be truly wealthy

#Retirement #PersonalFinance #HowMoneyWorks

___________________________________________________________________________

Music by Epidemic Sound

Stock footage by Storyblocks

[Genxrgonemad]

I was a financial adviser for many years and I can't tell you how true this video is. I used to have to do suitability by federal law which means I had to ask what people made and almost every millionaire I dealt with income was over 250000. Even more notable was most millionares didn't understand basic investing. Trust me they got more help then the average Joe.

[stephensusman]

"How Money Works is where dreams come to die"

That's why I like this channel

[fairlyfactual]

Remote work has been the best thing to reduce lifestyle inflation in software engineering. No need to live in an expensive city; no need to spend significant sums of money to look great. I hope this trend continues in other fields, since it has really helped to keep a low-spending lifestyle while making the same money as before.

[aaronr]

"Nobody wants to buy a course on building wealth through a 40 year career in medicine."...ain't that the truth?!

[Spiritfba]

I am an independent house cleaner and my husband is in appliance repair. We do pretty well but to us that looks like: 1300 sq ft home, 2013 Honda Odyssey, being able to splurge on food, go on modest vacations, and taking the kids to Chuckee Cheese every now and then. Happiness is not in THINGS. Do you REALLY need a 3000 sq ft house and a new car? To me happiness is taking my time cleaning a house while listening to podcasts, being able to not schedule houses on Fridays, and not working myself to death so I can keep up with the Johnsons.

[daltonstichtenoth]

Really appreciate the no-nonsense this channel provides. I can never get behind the other finance youtubers out there because they just feel like the physical embodiment of survivorship bias. And (anecdotally) you're totally right. I make 6 figures as an engineer, as yeah I'm not destitute or anything, but I wouldn't say I'm on the fast track to financial independence.

[matthewmitchell]

I remember my finance teacher asking us if we were all going to millionaires, he stated that all hands should be raised up because that was what it was going to take to have a decent retirement.

[cristosromania]

Conclusion is true because it nearly impossible to be the 1% but financially comfortable is a much more desirable goal which is achievable

[ToblerX]

Thank you! I was in a crypto sub on reddit. Everyone was spouting off about how they were going to be millionaires and buy lambos. I chimed in stating that I'm a millionaire, and I still go to work and save like everyone else, and That a million dollars wasn't $hit. You'd think I'd had told everyone I ate my own children with the amount of hate I got. No one wanted to hear that a million dollars doesn't make you rich. It reminded me of that quote that "most people say they want to make a million dollars, but most really just want to SPEND a million dollars, and these are 2 very different things."

[onthemoney]

Thank you for being real and honest. Youtube is such a deceptive space where people pretend to be rich so they can actually get rich.

[wfocwyb]

That "lifestyle inflation" is a big one. I used to live in a city, but found I was not happy as I was constantly surrounded by people who had nicer things and more money than I did. It's a constant reminder of your own inadequacy. I moved to a rural town and increased my commute, but am much happier and less inclined to compare myself to others. Around here, the millionaires all wear overalls covered in dirt and grease and drive old pickup trucks, so I never find myself getting jealous. :)

[lordhater]

Most of us already knew this, i didn't become software engineer over becoming a physicist because i wanted to be poor my entire life, and i always hated when my family said "just finish anything it will work itself out" no it won't.

[dutchvanderlinde]

Anyone who says money doesn’t buy happiness isn’t a poor person. Being rich is 100% better then being poor. That is a fact.

[patty]

I read the millionaire next door twenty years ago. I finally got to a household net worth of $1M. I do attribute its long term disciplined saving approach to my mindset.

This video is very accurate. I don’t feel rich at all; $1M isn’t what it used to be, it’s all in retirement and only worth $40k/year anyway.

Our income is high but after money spent on family we have surprisingly little left.

[wadeguidry]

I used to be concerned with "getting ahead" until one day my father told me that you will never really get ahead. It's just life. It's the way the system is designed. Until he told me that I would freak out every time something broke (like a car transmission or some kind of house maintenance problem). After he told me that, I accepted his wisdom and was a lot more comfortable with my average middle class life.

[nickolasbrown]

My ideal 'retirement' is scrimping, getting to around $600k, then getting a part-time job I actually enjoy. I think it's achievable, only due to that last bit xD

[cheyenneharmon]

I’m happy this video included how lifestyle inflation can help people and is necessary depending on where you’re coming from. For example, I grew up in a low income, under resourced community. When I was able to afford to move, I did! And guess what, I have more options for transportation, groceries, and banks.

Surprisingly, I didn’t know what my former zip code meant to people until I moved. Now, when I say where I live, I get “oh nice”, “good for you” as if they’re so proud / impressed. I never would get those responses from my hometown.

In society, if you’re from a “good” zip code, some people would automatically consider you trusted or a “good” person. But if you’re from a “bad” zip code, there are people who will judge you and deny you opportunities because they think you’re “ghetto”, “bad”, “dangerous”, and whatever other perceived judgments they have. SMH!

[ToboldStoutfoot]

I love the advice on “how to get rich by thrift”, because if you follow it, you might actually avoid getting into credit card debt over your head. That isn’y “rich” or “financially secure”, but it is better than average.

[samsulh]

I just want to live in a society where you DON’T HAVE TO BE WEALTHY to live a good, meaningful life.

[genericytprofile]

Honestly all I care about is being financially stable and having a chance at future retirement. But I've learned to set much more realistic goals such as eating and having a roof over my head since then...