ilmscore | ACCOUNTANT EXPLAINS: Middle Class Habits Keeping You in the Rat Race

ACCOUNTANT EXPLAINS: Middle Class Habits Keeping You in the Rat Race

Published: 2023-04-16
Status: Available | Analyzed

Predictions from this Video

Total: 8
Correct: 0
Incorrect: 0
Pending: 8
Unrated: 0
Prediction
Topic
Status
Switching jobs can result in a 10-20% salary increase, significantly higher than the 3-4% typically offered by remaining with the same employer.
"A more typical pay increase when you move between organizations is 10 to 20 far higher than the three to four percent you would have got if you stayed in the company."
Salary Increase
Pending
It is recommended to allocate no more than 15% of your annual income towards car expenses, including payment, insurance, and maintenance.
"The rule of thumb is to spend no more than 15 of your annual income towards your car."
Car Finance Guideline
Pending
Mortgage payments should not exceed 28% of gross annual income.
"The general guideline is that you don't want to be spending more than 28 of your income on your mortgage payments that's 28 of your gross income income before tax."
Mortgage Payment Guideline
Pending
To escape financial limitations, individuals should develop multiple income sources, such as a second job, online business, or investments in stocks and real estate.
"To break free from the rat race you need to diversify your income streams get a second job whether it's babysitting being an Uber driver starting an online business or investing in other cash generating assets like the stock market or real estate."
Diversifying Income Streams
Pending
Financial freedom is best achieved by owning equity in a business rather than solely relying on earning income from one's time.
"You're not going to get rich renting out your time you must own Equity a piece of a business to gain your Financial Freedom."
Owning Equity
Pending
The average debt held by Americans is $96,000.
"The average American holds a debt balance of ninety six thousand dollars."
Average American Debt
Pending
The average personal debt in the UK exceeds £33,000.
"The average personal debt in the UK is over 33 000 pounds."
Average UK Personal Debt
Pending
While a lack of financial literacy in one's early 20s may have limited consequences due to lower income, continuing this ignorance into one's 30s and 40s will make it significantly harder to rectify.
"it might just be excusable not to invest in our financial literacy in our early 20s we're busy living life dating seeing new places having expensive items and because we don't have much money to begin with the consequences of our lack of financial literacy are actually limited however if we carry that mindset through with us to our 30s and to our 40s and don't bother developing our knowledge base of financial literacy it'll become harder and harder to undo."
Financial Literacy Timing
Pending