4 Middle Class Money Traps to Avoid | Phil Town

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wealth management, money management, saving and investing, retirement calculator, early retirement, financial planning, saving money, how to save money,

[PhilTownRuleInvesting]

There are 4 common money traps of the middle class... have you fallen into any of them? Let me know in the comments ⬇

[Riggsnic_co]

These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.

[ganeshsingh-vgie]

For those who are in hurry or who want summary.
Midde-class Money Traps:
1. No emergency funds.
2. Not investing enough.
3. Many middle class American don't trust the stock market.
4. Not thinking long-term with money

[becys]

Another money trap is eating out all the time. Eating out can add up.

[alexk]

My middle class trap was getting a student loan for college. After 20 years and paying off $60k, from a $30k loan, going to college wasn't the only option available. "Go to school, get good grades, go to college will get you a good job...." The compulsory educational system (grades K-12) does not teach or make [students] aware of how to make money work for you.

[hubertkubiak]

I have actually realized how much money I was spending on unnecessary stuff.
Now when I want to buy something (like sweets or other unhealthy things) I go to the store, look how much it is going to cost me, put that thing back, and throw the money into a cash jar I made myself.
It is like I have bought it, but I did not get it - so I am healthier and wealthier.
I open the jar once a month and I am pretty happy with the result every time :)

[mxmx]

Error number 1 to think they are middle class and not poor.

[karyannecaines]

Honestly Phil I think all the information you offer is valuable. I am actually starting to believe that I can do this. Just put the work in and I can succeed at investing.
+ Researching companies is actually so interesting and fun!

[davidthecardcollector]

Money traps = cars, homes, boats, worthless degrees and week after week of wasting money on junk.

[currypablo]

My Financial Formula:

1) Regularly invest 4 to 5 hundred dollars from my paycheck in a Vanguard S&P 500 Index ETF.

1) Aside from my gym membership and phone bill, I don't have any reoccurring subscriptions, no Netflix and Spotify.

3) Drive a used car

4) Buy clothes from Walmart or. Thrift store.

5)I don't drink or go to bars.

Let my investment compound year after year. Oh and do not get married and have kids til you are financially settled.

[robinoozor]

Buying more house than you can afford and getting hooked on a 30yr mortgage is another middle-class trap.

[DJKRYSSofficial]

Most of my young adult life I’ve been caught in that trap. Always had a car payment, carried consumer debt. But me and my wife are more financially aware and have a strict budget. We now have our emergency fund in place, working down our debt and will start investing once we’re completely out of debt.

[warrenbuffett]

Great info Phil. Save your chips and buy those dips

[my_humble_opinion]

1) Massive student loans
2) Buying more house than you actually need
3) Buying or leasing a new, expensive car that you can barely afford
4) Excessive spending on consumer goods
5) Excessive spending on restaurant food

Pay yourself first (build savings), pay your debts, budget the rest, stop keeping up with the Jones’s because many of the people in the big homes, with the great cars, taking lavish vacations are some of the most stressed out and unhappy....

[Thomas-wedu]

If you on a smartphone and you hold the phone far enough from your face and blurr your vision a bit then you will see "professor Charles Xavier" from xmen.

[Sectionmillionaire-fgmm]

I really feel bad for the older people who worked their whole life only to find out they can't stop working and end up employed at a gas station.

[marcotam]

This is my personal money trap experience. When I graduated and was still living at home, I landed a job and bought a brand new $26k car. That was probably the single biggest mistake I could have made at that time. I paid it off in about 2 years but ended up spending more money on modding it as well. Looking back, time is one of the biggest wealth building luxuries that you cannot afford to squander. If you're living at home, that is even more advantageous. I could have bought a more simple car and invested the $30k total that I spent on the car instead. I'm 32 now and I put away 30% per paycheck for investing. It's amazing the leaps and bounds you make when you switch to the mentality of holding onto your money instead of spending it.

[offroadster]

Ugh!.... Great video, but yeah fell into most of these traps. I cashed out my 401k back in 2007-2008 so we could keep paying our bills. Did thinking we'd be able to bounce back really quick and get back on track. 10 years later I wish I would have figured out another way. Thanks for sharing.

[gscriptgallery]

Loved your video! Thanks, Phil. Makes total sense and seems so much true. This definitely helped me.

[InvestingRobinhoodInvestor]

Great video Phil! Thanks for the reminders