Why Everyone is BROKE
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Published 2022-05-23
64% of Americans are living paycheck to paycheck and 54% of Americans don't have enough money to cover a $1,000 emergency expense. Why is it that so many people do not have enough money to live?
I think there are two main reasons:
1. People are not making enough money.
2. People are not managing their money correctly.
I think the problem is very deep and it is a mix between the two, but in this video I want to focus on the second reason because I think one of the main problems is that people are not managing their money correctly.
As we become more advanced as a species, the cost of living goes up, but it doesn't have to be as expensive as many people make it out to be. In this video, I talk about "15 Reasons Why People Are Broke."
Reason 1: The World is Becoming Dystopian
All people want in life now is convenience and pleasure, which is making the world very dystopian. There is an app that will take away any pain and convenience in your life, but these are bad for society and leave you broke.
Reason 2: The Man and His Tricks
The Man is the establishment put in place to bring us down. The man has many tricks that usually involve shiny, expensive possessions to keep you in debt and make you broke.
Reason 3: People Don't Take the Time to Understand Money
People spend their whole lives trying to make money, but don't take a second to understand money. If you spend some time understanding money you won't need to spend as much time making money.
Reason 4: To Justify Hard Work
Many people work extremely hard, long hours and so when they finish work they need to justify all their hard work by spending money. If you spend less money you won't need to work as hard.
Reason 5: They Don't Care About Money
The less you care about money, the more you are going to have to worry about it. Care enough to understand it and respect it and it won't be as important to your life.
Reason 6: It's More Expensive to be Broke
When you don't have the money to pay for something up front, money becomes more complex. You have interest, fees, and monthly payments. Save and buy things in full because it is much cheaper that way.
Reason 7: The Rich Mentality
Many people think that having money means spending everything. The average millionaire does not have fancy cars and big houses, but respects money and uses it to enhance life.
Reason 8: They Celebrate Christmas Everyday
People like to open presents and a company called Amazon has made it possible to get a package to your door every day like a little present. Just like Christmas presents, most of the time these just get put away and you are left with less money.
Reason 9: Lack of Contentment
Our society fails to teach us how to be content. We are constantly upgrading things and seeking happiness externally which is an expensive habit.
Reason 10: They Throw Money Away
People spend a lot of money buying things for the excitement of the purchase. There is a lot of excitement involved in the purchase, but most of the time the excitement fades away and you are left with clutter and less money.
Reason 11: The Don't Have a Balance
Life is about having a balance. You can't save all your money thinking times will be better, but you can't spend all your money and live paycheck to paycheck. It's important to have a balance.
Reason 12: Lifestyle Adjustments
As we get older, we generally start to spend more money because our standards get higher. People, however, will go to an extreme and base their spending off their salary, but when you do this you are often living paycheck to paycheck.
Reason 13: No Budget
You can't live by chance, you have to budget your money so you know where it is going. Create a budget so that you will live intentional and not by chance.
Reason 14: Bigger is Better
In the US, we are told that bigger is better. Big houses, big cars, and big portions. Bigger is often unnecessary and costs a lot more. Don't feel the need to constantly get bigger things.
Reason 15: Constantly Treating Themselves
A treat stops being a treat when you have it all the time. People spend too much money when treats stop becoming treats. Buy treats on occasion instead of all the time.
*None of this is meant to be construed as financial advice, it's for entertainment purposes only. Past performance is not indicative of future results. Austin Williams does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned may not be suitable for you.*
All Comments (21)
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Gracias mijitos for watching!
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I started following a budget 33 years ago and owe nobody anything. My house is paid off, car is paid off. I have investments and money in the bank and can afford to do whatever I want and buy whatever I want. But I don't. I'm still careful with money. And I'm happy.
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More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
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Tyler Durden summarizes this perfectly: ”Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need.”
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Best thing I do for myself is staying far away from people who smoke cigarettes, weed, drinking, gambling, no plans and can't hold a conversation
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“Please do not sell your soul for a pine cone with glitter on it.”
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The rich live like they're poor and the poor live like they're rich.
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I've been drastically reducing my spending and needed this video to help me stick to my new more minimalist (but not completely minimalist) lifestyle. I spent $400 less this month than last!
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New favorite quote: "Don't sell your soul for a pinecone with glitter on it."
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The poor accumulate stuff, the wealthy accumulate assets.
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We simply should follow our grandparents lifestyle! Don’t buy fancy things, don’t throw what can be repaired, don’t buy more food then you could eat in few days etc etc….
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Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
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I think the core of the issue is people trying to live above their means. Spending money on nice things doesn’t mean you’re an irresponsible person, spending money you don’t have is irresponsible.
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All of this. So true! I cancelled my Amazon prime and decided if I really want something I should be willing to pay shipping for it or wait a week to get it. So far it’s been working. I’ve had one purchase in 6 months and it was a necessity.
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“Selling your soul for a pine one with glitter” did it for me 😁😆😄😆
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You’re so right about the Amazon habit being like having Christmas every day. I don’t want to sell my soul for a pine cone covered in glitter. I am definitely going to work on this.
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I have seen my share of “Why People are Broke” videos, and I can honestly say that this is the best and most relatable one I have ever seen. Thank you for this great video ☺️
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LOVED this video! We are a family of 4 living on one income and I have been for a few years now. I have made it my mission to not accept more is better. I also loved your inclusion of the titles within each bullet number, makes me want to take notes! “If you treat yourself everyday, then it’s not a treat, it’s norm.” That hits home!
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Good stuff. Totally agree. I used to be a spendthrift until I went broke and had to start all over at 50, after living a lavish life for quite some time. I now use my laziness and sense of procrastination to avoid spending money. I love minimalism, living in a small space, buying quality things that last and saving the majority of my income as my expenses are miniscule. I notice these big subdivisions that pop up soon have Rooms To Go, all kinds of stores to fill up that new, big house with new furnishings. Restaurants and you need a nice, new car to be like your neighbors who you hate.
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20 years ago, when I was broke, I read the book Rich Dad, Poor Dad and it changed my life. And I wouldn't say I'm very clever with money, I just picked up a few good tips I've used.
