Why Looking Poor Is Important for Retiring Well

In this video, we explore why some of the wealthiest individuals live modestly and how 'looking poor' can be beneficial, especially as you plan for retirement. We discuss the concept of the 'hedonistic treadmill' and how avoiding it can lead to financial freedom, reduced stress, and overall happier life. Learn the three key benefits of living below your means, and get inspired by historical figures like John Wesley who exemplified this principle. This episode offers valuable lessons for both retirees and younger viewers on the importance of mindful spending and building financial margin.

00:00 The Goal of Financial Independence
00:03 The Illusion of Wealth
00:25 A Real-Life Example of Financial Mismanagement
01:00 The Benefits of Looking Poor
01:17 Freedom from Dissatisfaction
02:21 The Hedonistic Treadmill
03:54 Financial Freedom Through Simplicity
05:57 The Trap of Financial Stress
06:21 The Importance of Financial Margin
06:59 Avoiding Lifestyle Creep
07:16 John Wesley's Example
08:36 Concluding Thoughts on Financial Management

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*ABOUT ME*

I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission — pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money — so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!

📅 *THE BASICS OF RETIREMENT PLANNING*

Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.

Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.

Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.

Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund — especially if you have an employer retirement plan that matches any portion of your contributions.

Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.

Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.

❣ *SPONSORED* No, this video was not sponsored.

⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome

[annietaylorsmith]

At 45, I divorced my spend-o-holic spouse, I started to build my retirement. I purchased used cars (2 Toyotas). Eventually bought some land in the country (12 acres) and put a brand new single wide 3 br 2 ba mobile home on the property. Paid everything off before retiring at 59! Life is good with chickens, a garden, and my dog, Buddy! I don’t care about looking “rich.” I wear clothes from Tractor Supply and Walmart. I am the queen of my single wide trailer.😂❤ 🐶🐾

[NoFeeArea]

I like looking poor. 1) people generally leave me alone 2) people don't argue with me (and sometimes reveal secrets). 3) I am invisible unless I want attention. Inner peace.

[cjhoward]

Just reading all these comments, I feel like the people who SHOULD be watching this video are not. And those of us that are watching, are already doing these things

[ultimobile]

at work I was mocked for my frugality - making my own coffee, saving money, driving an old used car. Then I retired with enough nearly 8 years ago, and those who mocked me are still working at around 70yo since they couldn't afford to retire !

[maryd]

At 56 we downsized our big 6 bed/4 bath home for a one level smaller home. Hubby fought me on this because he liked the status of the big house but with the kids gone….nope. We are both happy beyond words to have a house that’s paid off. Retired a year later because of this. We live near “normal” people instead of snobs like the old neighborhood! We are truly living the dream.

[hannible]

People stay rich pretending to be poor, poor people stay poor pretending to be rich. One of the best sayings ever! I pretend to be poor!

[lynndupree]

As I've gotten older, I realize that I can't do all the house cleaning anymore. I value my limited time here on planet Earth more than I value a hoard of money in the bank. So I do have a cleaning lady, but it's not to impress anyone. It's to free me from drudgery and a sore back. I live within my means by driving a 9 year old car and paying cash for a small house in a very modest neighborhood. I don't spend money on status symbols, but I do prioritize my time and my health.

[RyanBerich-uw]

There is no need to look poor. Wearing clean cloths, driving affordable, clean, and well maintained cars, and so on does not look poor. It is not flaunting wealth but it is not poor. Live comfortably and within your means and you will win the game.

[GrnXnham]

100% true. The richer you look, the more family and friends want to "borrow" money from you!

[JanRonandArthur]

This is absolutely true. We have always lived way beneath our means. We retired at 50 and 55 from professional jobs of 25 and 30 years. We immediately started working, I as a housekeeper for independent homes and spouse for a small mom/pop retail hardware store. No one has a clue how financially free we are. We drive a simple vehicle, non name brand clothes, and live in a very small cottage in a rust belt town. We live well, eat well (at home) and sleep well. We look very poor. We are not!

[andycraig]

This video is spot on. I was made redundant in my mid forties and spent 4 years in a lower paid job. Discovered to my amazement that i could live quite happily on the lower income. At 50 i returned to a much higher paid job, and just continued with the same low spending lifestyle. Retired at 60 with no debt and hugh savings. Am now 67 and very very valuable lesson. Andy in uk.

[davidgifford]

I’ve only learned one financial lesson, that was in childhood from Dickens Great Expectations Mr Micawber “Income 20-shillings a year, outgoings 21-shillings a year, misery. Income 20-shillings a year, outgoings 19-shillings a year, happiness”

[Zoydian]

Hi Kevin, i think another HUGE advantage of "looking poor" is that the people that stick to you do so because of you, and not because of some financial benefit they may obtain from it.

[bigseahorsedc]

The wealthiest person is not the one that has the most. Its the one who needs the least. A 20% sale is still 80% on and may not really be on sale at all. Self control is a great wealth builder.

[Hammers]

We’ve lived beneath our means our entire life. As I get closer to retirement I’m going to enjoy the fruits just a bit. I don’t care what my neighbors think.

[daniellecarney]

I totally agree with you. When I drove a new BMW, bought like crazy, and lived in a million dollar house, I was not near as content as I am now, driving a ten year old Prius, no consumer debt, and a house worth less than half of my old house. I do not desire the same things anymore, since they are all empty promises and they just don’t deliver.

[steve]

Answers to doing lawn and other work:
Cutting the grass is good exercise and I can think about things without interruption.
I spent my whole career behind a desk. I found out that I really enjoy working with my hands.
When I do it myself, it gets done the way that I want.
I have time now to try new things.
Physical work during the day helps me sleep at night.
....

[neildillon]

When i was a young guy just starting out i worked with an older employee who seemed to have done well for himself over the years. It was a union shop so we made the same salary. I wondered why was it i couldnt seem to get ahead. Ill never forget his response. " It doesn't matter how much you earn, it only matters how much you save". 😊

[JoseJimenez-]

The consumer financial sector would be devastated if large numbers of people followed this advice. 😢😢😢

[dsmith]

Nearly 69, spouse is 73, married 35 years - we have always done our own yard in a neighborhood where everyone else has a lawn service!! I even painted my own house - that probably surprised some of the neighbors! I've lived beneath my means most of my life - we haven't made huge salaries but we are financially stable and happy -at our age good health is the true wealth.