If You're 30+ And Still Broke - Watch This Video Today
Published: 2024-04-10
Status:
Available
|
Analyzed
Published: 2024-04-10
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Paying down high-interest debt (15-25% interest) should be prioritized over investing in the stock market (7-10% historical return).
"Well, the reality is when you put your money into the stock market, you're trying to get a 7 to 10% return on your money. This has been the historical stock market return over the last century. But when you have these high interest debts, you are paying 15 to 25% a year in interest. So, what I want you to do first is pay down this because this is a bigger number than this."
Pending
The recommended emergency savings fund has increased from $1,000 to $2,000 due to inflation.
"Right now, the majority of Americans do not have $1,000 saved up for an emergency. Well, what we've been seeing happen, especially over the last few years, is that inflation has made things much more expensive. And so now, if you want to be able to have a little bit of a financial cushion to save you and protect you against little financial emergencies, you got to have at least $2,000 saved up."
Pending
A 'decade of sacrifice' is recommended, involving spending less and earning more to build wealth.
"I call it the decade of sacrifice, where you're going to have to go through this period of spending less and earning more."
Pending
A 75/15/10 plan is proposed for managing earned income: maximum 75% for spending, minimum 15% for investment, and minimum 10% for saving.
"And a simple funnel that you can follow is something like a 751510 plan, which says that for every dollar that you earn from now on, 75 cents is the maximum that you can spend. 15 cents is the minimum that you invest and 10 cents is the minimum that you save."
Pending
The ideal savings goal is between 3 to 12 months of expenses, adjusted based on individual risk tolerance and financial stage.
"You want to save somewhere between 3 to 12 months worth of expenses. And the amount of money that you save is going to depend on you, your risk tolerance, and where you are in your financial goals."
Pending
Historically, stocks, real estate, and businesses have been the most effective asset classes for wealth building.
"The three places, the three asset classes that have built more wealth than any other asset class over the last century are stocks, real estate, and businesses."
Pending
Consistent investment during recessions and market crashes, despite economic cycles, leads to greater wealth building over the last century.
"What we've seen over the last century is that despite the recessions, despite the market crashes, if you just keep buying, you will be able to build more wealth because our economy has gone through cycles."
Pending
Financing purchases is discouraged unless the item directly generates income, with the exception of a home.
"Do not finance anything that's not putting money in your pocket. The only exception being your home."
Pending
A 'rule of five' suggests that one can only afford an item if they could afford to buy five of them, implying a need for significant disposable income for a purchase.
"One of the rules I like to follow is a rule of five which says if I can't buy five of them, I can't afford one of them."
Pending
Statistically, increasing income without addressing poor spending habits often leads to a larger financial deficit for most people.
"You cannot outearn bad money habits. And the thing that most people try to do is when they realize, oh, I'm broke. I need to figure out my money. I need to invest more money. I need to go and get more money. And when people make more money, statistically what we've seen happen is that the majority of people end up in a bigger financial hole."
Pending
To earn more money, focus on solving significant problems that people are willing to pay for, with greater willingness to pay for more difficult or needed solutions.
"The bigger the problem, the more that people will be willing to pay for it. The more difficult it is to solve the problem, the more that people will be able to pay for it. The bigger this need, the more that people will be willing to pay for it. But you have to be able to solve a problem and monetize that solution if you want to be able to make more money, especially if it's something that you create."
Pending
As wealth increases, hiring good attorneys and tax advisors becomes crucial for legal entity protection, insurance, and managing potentially rising tax liabilities.
"So, the best thing for you to do right now is you got to figure out how you can find a good attorney. Now, you want attorneys to protect you if you have businesses to create legal entities, legal sheets, how insurance, but you also want to have your tax advisors and financial adviserss because well, as you make more money, your tax liabilities can also go through the roof."
Pending