Reason #4: Why Americans Are Actually Broke

Reason #4: Why Americans Are Actually Broke

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[stevenporter]

2:45
Being generous with what you have: good. Being generous with your credit or what you don't have: self defeating.

[glasshalffull]

My parents grew up in the depression and were pretty frugal, but not overboard. One thing I did learn is NEVER carry credit card debt. If you didn’t have the money to pay it off each month, you didn’t buy whatever it was. They also didn’t buy new cars and neither did I. After getting a STEM degree and going to work, my #1 goal was to save enough to buy a house. To meet that goal, we saved like crazy and my wife worked three part-time jobs til she landed a good full time one. Always took the 401K match and then upped it every raise til I maxed out. Never owned a new car until I was 50. Beginning salary was $22K.

[THAOpeacockcichlids]

I tried budgeting but never stick to it in the past. 😆 The way I do it now is:

1. Auto draft cash saving 10% of my pay every month
2. Auto Invest 25% in my 401k and max Roth IRA
3. Pay all my bills
4. Grocery
5. Save 5% for vacation
6. Whatever is left I spend with no guilt 😊

[Moist._Robot]

Bedazzle your basic life.
Cycle touring to a quality destination.
The joy is in the journey.

[IrisP]

We never carry credit card debt. It is always paid off on time. Also, we are trying to be smart with our spending. We spent money on a vacation in two months for our family. Recently were invited to go to a world renowned celebrity chef owned restaurant with friends and said no. There is no reason to go there and spend $50-$100 per person there. We want to go a cheaper place (they like expensive restaurants).

[Lolatyou]

I'm just glad I naturally just didn't even consider debt as an option growing up and even going through college I worked before going and paid cash and got scholarships halfway through.
After college I just wasn't spending any money so just invested literally everything I was making at the time

[Waffle_Haus]

Autopay your bills but just keep an eye on them. Especially internet that will go up $5 every few months with some servicers.

[Jakenine]

I understand the metaphor and sentiment, but you can make budgets all day, but they won't matter without discipline. There are no guardrails to a budget. The only way you'd get guardrails for spending is if your bank had a system they could implement in your bank account that tracked how much you spend and cuts your card off after you've spent the limit. Buuutt banks don't care and they only want your money. It all starts with discipline first. A budget won't do a person any good if they don't have the discipline to follow it.

[zo_]

Budgets don’t work because of Parkinson’s law. I never liked setting a specific amount for variable spending. As per Parkinson’s law, if I give my self 300 for food I will spend 300 for food. Instead my goal is 0 or as close as possible to 0. I learnt this from Liz at the frugalwoods.