Hey folks! I wanted to chat about the 50/30/20 rule as lots of people in the comments have discussed how it doesn’t fit their reality. I feel like I should have emphasised more that, like everything in the video, it’s is a starting point for a budget rather than a strict rule (if I could go back, I would have not called it a rule and talked more about how it helped me shape my budget). The cost of living has made things harder for everyone (especially rent!) & the book I based the section off was definitely written for the economy of 20 years ago. The reason I ended up including it is because I found it really helpful to know where to start - while I too can’t make the 50% work, I found having a structure to be really helpful as a starting point, of how to think about and structure a budget. I made the video for people like me who were confused and really stressed about money and the last thing I want is to contribute to the stress and confusion. I’m still learning as I go & I hope that this one section doesn’t detract from the overall messages! - Taha 💛 P.S. the scam investing bots are out in full force, I am doing my best to remove them!!

@farragoprismproductions3337

5 ай бұрын

I truly recommend looking up 50/30/20 budgeting for Notion. I used one where I could tinker a bit in order to have the budget fit my financial situation. (e.g. Instead of 50/30/20, you could use the "formulas" to make the money be distributed by 60/30/10, or 30/50/20, or whatever.) As a warning, it can be tricky to use Notion, so try to use examples of the costs of what you would buy, and see if you can make it work on your end. I'm in my second semester of community college, but I use it for expenses outside of my tuition. Good luck!

@vengerofthelight

5 ай бұрын

I appreciate you addressing this. Frankly, at this point we're looking at more of a 80/10/10 split. -_-

@nicojar

5 ай бұрын

Hi Taha! Sounds like it's a good opportunity to create a new video about "best strategy in times of crisis", when so many people are concerned by the crisis. 😊 Like an add-on to this video, but adjusted to reality (to the reality of the vast majority of people watching KZread)

@doujinflip

5 ай бұрын

I seriously wonder what KZread gets out of all these spam bots. Padded "engagement"? They're pretty obvious and consistent with their "comments"; it feels like the KZread algorithms intentionally ignores them for some reason.

@MKisFeelinSpicy

5 ай бұрын

I think you were pretty clear that it was a suggestion, not a hard and fast rule. "If you don't know where to start..." "...and maybe it doesn't work for you..." "'I've tried a budget before and they never work.' ... Common reasons budgets fail is that they ... don't reflect your reality." But I don't think people commenting about it are concerned about you framing it as a "rule". They're commenting on how out of touch it is to even suggest it as a suggestion (not a rule). The economy is so fucked that the 50/30/20 suggestion is only slightly better than suggesting "just pick yourself up by your bootstraps!" It sounds flippant, even as a suggestion. The idea of using X%/Y%/Z% for needs/wants/savings isn't a bad starting point for those who actually make enough money to cover more than their needs (which is far from everyone), but I think it's just the numbers themselves that are taking people aback.

The big issue with "spend less than you earn" is when you make very little. You can't save anything when your "needs" takes up 100% of your income.

@dog-ez2nu

5 ай бұрын

''it goes it goes it goes it goes GUILLOTINEEEEEEEEE yuh'' - MC Ride

@MegaLokopo

5 ай бұрын

You then need to make changes. If you can't afford to drive, you probably should find a way to make not driving work or get a roommate or several. There are always ways to spend less than you make.

@pandemoniousivy4651

5 ай бұрын

​@@MegaLokopoexplain why being homeless is so expensive and how they can cut costs even further 🤡

@alexreid1173

5 ай бұрын

@@MegaLokopoI use public transportation and have a roommate… I still spend 80% of my income on rent alone. And my rent isn’t even that much compared to what many people are paying! I’m extremely frugal and don’t really spend anything on wants

@periidote9778

5 ай бұрын

yeah another channel called how money works talked about this stuff and said point blank that eventually you're just going to have to make more money.

I'm a teacher in the UK and I go for the 80/20/0 rule. 80% necessities (incl food), another 20% on food because my initial budget doesn't cover the cost of living increases, and the remaining 0% on future planning and saving. Bish, bash, bosh

@ogre706

5 ай бұрын

Yolo!

@Siberius-

5 ай бұрын

Now you're getting it! bish, bash, bosh!

@Aidiakapi

5 ай бұрын

At least you have healthcare and a pension, so your emergencies are less likely to be fatal. 😅

@nnov_tech_chan7891

5 ай бұрын

Did you cook your food yourself or just buy a prepared one? Just curious.

@gargantuasounds

5 ай бұрын

Yes - prepare it all myself, and cook larger portions to reheat later on in the week. I even go to a local greengrocer to buy the exact quantities I need to cut down on food waste@@nnov_tech_chan7891

Taha and Grant O'Brian are two people who surprisingly reduce the amount of degrees of separation for anyone on the internet, I suppose it makes sense they know eachother

@gunslingerspartan

5 ай бұрын

also, brian david gilbert I feel like you can really use him to shortcut across these seperation games he's in adventure time, starfield, adsfmovie fallout 76 and a bunch of podcasts and not to mention he was over at polygon for a while, has his own youtube channel and now I mention it, wasn't he on the ai learning episode of answer in progress?

@gunslingerspartan

5 ай бұрын

oh and john DiMaggio, he's everywhere

@wolfiegames1572

5 ай бұрын

Also, pretty obviously mrbeast

@alexreid1173

5 ай бұрын

Hank Green is also pretty good at that lol

@sylvy16

5 ай бұрын

@@alexreid1173funny enough hank was on a dropout show and he’s one degree of separation from grant and he also is friends with taha

I’ve seen a few of these “learn about money” and “get out of debt” videos. They are all great at laying out the basics (especially this one.) But, I’m always disappointed that they don’t add something about the number of people in a community that can’t make more than they need to spend to survive. We always consider personal finance to be personal responsibility and never bridge the gap to community organizing to lobby for more housing and community goods to help people live within their personal means.

@c0ttage

5 ай бұрын

rent control, public transportation, free college, community gardens, and community all help people save money and stretches your dollar, you're absolutely right

@lostbutfreesoul

5 ай бұрын

The one thing that has made a big difference in my life - cheap housing. Just look at how much money goes out of a families budget to the insane housing market these days, and you find a large part of the problem right there. When more then half of your income vanishes instantly it really is impossible for you to do the whole 'saving up' thing. I recognize how lucky I was to have friends and family that do the communal living thing, for it brought the cost of housing down a great deal for us all.

@trekman10

3 ай бұрын

Yeah, every one of these videos should include in each of its points what kinds of policy to advocate for to make all this advice practical to follow. Interest rates aren't just a thing we have to accept as being "high" or "low", these are deliberately exploitative and predatory. The onus shouldn't be on the statistically less educated and less wealthy person to have the right moral fortitude and vigilance when it comes to a financial system designed and controlled by wealthy, educated elites.

Absolutely adding “if you like bad news, I have good news for you” into my dialect

Only 50% towards necessities? Hon, I'm Canadian: 50% of our money just goes to RENT. This does not even include food, utilities, clothing, anything other than rent. It's MADDENING how high our cost of living is. I'm 33 years old and I still live with my parents for this reason.

@creounity

5 ай бұрын

Why renting? Why don't you get a mortgage to buy a house or an apartment of your own? Renting will be forever, while mortgage only lasts for some fixed amount of time.

@4cps777

5 ай бұрын

@@creounity "If you're homeless, just buy a house"

@kylewagner6522

5 ай бұрын

​@@creounity current interest rates make a mortgage significantly more money a month than rent.

@Blukat2-pb8lx

5 ай бұрын

@@creounity Also banks might deny you a loan.

@jamesclawson9243

5 ай бұрын

​@@creounityat least here in the western US, housing is beyond unaffordable to buy. And it's very difficult to save for a down payment when you're spending half your income just on rent.

Reasons Budgets Fail: most people aren't rich enough to spend less than 50% of their income on necessities

@JohnEvans-bc3mk

5 ай бұрын

​​@@durdleduc8520in the US, at least, median rents in every city are roughly 50% of median income or far higher. This means it is literally impossible for large swaths of the population to keep necessary expenses under 50% of their income. Not just difficult. Not just not hustling hard enough. Literally impossible. Wages are too low, rents are too high, and housing is too scarce.

@lessefrost

5 ай бұрын

Keep in mind, this too is a falsehood of housing being scarce. There's a surplus of living space, but since it's kept empty by it's owners for lack of profitability in one way or another.

@gamingwitharlen2267

5 ай бұрын

You have to keep in mind there is always a way to save money whether by working more or not eating out.

@lexa_power

5 ай бұрын

Most of us spend 100% of our income on necessities and then are so burned out from late stage capitalism and working 60 hour weeks that we spend money we don’t have on credit cards on stuff to provide any little bit of dopamine so we can stay just miserable enough to not off ourselves and keep contributing to the late stage capitalism machine.

@PondScummer

5 ай бұрын

@@gamingwitharlen2267 by working more, you mean 2 full time jobs? lmao. By the way, people who struggle don't even have the money to eat-out in the first place.

basics aside, something I never see talked about is how to actually *spend* money effectively. I grew up poor, so when I became an adult and started working I would just save as much money as possible, minimizing monthly expenses and *never* making big purchases. Now after 4 years of work I'm at a point where the cost-benefit analysis is quite obviously pointing me towards actually buying stuff. I need a new phone, new pc, kitchen appliances, etc. Not buying those things is costing me significantly more time and stress than is worth it. It genuinely feels so alien to be spending money now, almost like some kind of self betrayal.

@biblioholic7139

5 ай бұрын

A properly set up zero based budget is a good way to give yourself permission to spend money while knowing you are still meeting needs and savings targets. You take all the money you currently have and give every dollar a job based on your needs, wants and priorities. I personally use YNAB for this, but spreadsheet or pencil and paper should work too. If you have enough earmarked to any given item to buy it then you don't need to feel guilty making the purchase up to the budgeted amount.

@woutervanr

3 ай бұрын

I swung another way. I grew up with not much money, but we did have food on the table everytime. Anyways, when I got more money I suddenly started spending. I got ADDICTED to spending! And I just never learned what to spend on, what was worth it. So I bought bad stuff and also just stuff I didn't need. And if I couldn't find anything I may need now I started thinking about stuff I needed later when living on my own. FINALLY I have now (a few months ago) really realised that this is bad, after like 5-6 years. So now I have stopped spending on random garbage and am only left with the painful task of selling/throwing away stuff to get my home cleaner and emptier. PLEASE don't fall into this trap either.

@summertime69

5 күн бұрын

I also have trouble spending money. I have this idea in my head that people Will judge me based on my purchases, so getting the expensive butter meant I wasn't allowed to complain about not having money... I'm not going to give advice on how to be better at spending, but the one thing I will advise is separating the spending (not just writing out numbers on a budget sheet - I HATE budgets), but by literally having a separate account for necessary bills and moving my monthly amount into it. What's left in my "spending" account I know I can spend free and clear, no strings attached.

@Chocl8ThundR747

4 күн бұрын

@@summertime69 Great advice! I'm in the same camp as the two of you, and I like to spend on the things that bring me the biggest utility or value in life, and spend conservatively on the rest. Taking a new phone as an example, most people use their phones for over 30 minutes a day (at a very conservative estimate). Over the course of a year, that comes out to 180 hours on the phone, and i think its fine to spend on one if your phone isn't in working order. I also enjoy dining out and treat myself to dinner with family a few times a week because it's something I greatly. To feel comfortable spending on dining out, I spend very little on clothes, electronics and other things in the wants category.

10:09 I feel like everyone needing a main job AND a side hustle to get by is a frustrating symptom of the growing difficulty of covering basic expenses, driven by stagnant wages and increasing inflation (particularly in housing and food). For our parents' and grandparents' generations it was so easy to get by on a median income, but now it feels like you need a main job AND 1-2 side hustles just to get by.

@no-ic5gw

5 ай бұрын

Welcome to capitalism, wage slave.

@SageLegacy

5 ай бұрын

Agreed. Teachers often need side hustles and the more normal this becomes, the more administration and governments feel less pressure to change the flow.

@MegaLokopo

5 ай бұрын

It isn't hard to get a better job or to reduce your expenses.

@a_person5668

5 ай бұрын

@@MegaLokopoEXTREMELY LOUD INCORRECT BUZZER NOISE

@MegaLokopo

5 ай бұрын

@@a_person5668 Why is it so hard for you to get another job that pays more? What prevents you from lowering your expenses? Do you drive a car? I don't, I talked my boss into driving me to and from work as a condition of accepting the job offer. Driving is optional no matter where you live.

I taught high school Econ in Missouri, and one-size-fits-all financial advice really isn't appropriate for kids from different socioeconomic classes. Some families spend 100% of their income on necessities, some are more prosperous but need to take care of extended family, others have a complex, integrated family fortune, etc. In the end I turned that into a teachable moment for the richer kids in the class: I gave them an assignment to plan the finances of a poor family. Sophisticated budgeting or investment techniques are useless when the cost of necessities is higher than the family income. They need to make hard choices like moving the family of 4 into a 1-bedroom apartment to save on rent or having the eldest son leave school to work a minimum-wage job.

@FullLengthInterstates

5 ай бұрын

Sophisticated financial maneuvering is even more important for broke families. The core concepts are the same. Always understand your options for increasing income, getting financing, the importance of liquidity, cutting expenses, and risk management. It may not be politically correct to have kids write out the unpleasant/ grey market stuff but it would definitely help improve outcomes.

@LePetitVingtieme1

5 ай бұрын

Love the teachable moment on this - shows what the reality is for folks who don’t have a great deal of financial means and just how difficult it can be to get out of that situation.

@vigilantcosmicpenguin8721

4 ай бұрын

That's a rough situation you handled uniquely well, it seems.

@NoBodyToDanceWithMe

4 ай бұрын

My econ teacher had everyone play SPENT in high school and it really opened my eyes to how insanely difficult budgeting and life is

@vixxcelacea2778

2 ай бұрын

@@FullLengthInterstates Broke is not the same as poor. Broke is a temporary financial situation. Poor is perpetual. There is a reason almost no one gets out of poverty and it's not because people are stupid. It's because having money allows you to make money, but only once you reach a threshold. You can see this in the uber wealthy. They make money doing nothing because the pool keeps aggregating due to whatever they are invested in. You can't invest at all if you don't have anything left over after basic necessities like rent, food and bills to exist with any measurement of a roof over your head, food in your stomach, clean enough water and some heating/electricity. People assume the pool is bigger than it is. You can't swim in a puddle. You don't have the option to increase your finances when you have to increase your spending in order to do so. Which is usually the case with going to school, moving or getting a mortgage. More than half the world is poor/lower class and stuck in this situation to one degree or another.

This is a small part of the video, but I'd push back at the idea at 5:47 that wealthy parents pass on good financial advice to their children and poor parents pass on bad advice. Being rich doesn't necessarily mean you're good with money or having financial literacy conversations; you may just have inherited a ton of money. Likewise, poor parents often talk much more about money to their kids, and poor kids likely grow up with a much more clear idea of how far a dollar goes (or doesn't). People aren't in poverty because they have bad financial literacy (at least in the vast majority of cases). They're in poverty because they don't make enough money, and it's impossible to save money when you don't make enough to cover the necessities.

@WyvernYT

5 ай бұрын

True so far as it goes, and there are plenty of stupid people with wealthy parents - but if you've got wealthy parents and friends, you can easily find out where to hire a competent money manager. It's much, much easier to stay comfortable once you are comfortable than to pull yourself out of a hole.

@Yous0147

5 ай бұрын

Exactly, very well put. What is also important to now about richer families is that they have connections and a network that places the children well off for the future. That isn't something that will change from a change of curriculum either, although I do like the idea of teaching more responsibility about spending.

@MisterKazoo

5 ай бұрын

yes, but the majority of people who are good with money end up making/having a good amount of it. then they have kids and the kids see how their parents act and learn their habits. all young kids are doing is looking at what the people around them are doing and learning from that. and getting money is the easy part, keeping it is the hard part. most wealthy, or even just well-off people don't waste money, and their kids see that. the exception does not make the rule

@PondScummer

5 ай бұрын

@@MisterKazoo Every well-off person I know spends money like it's water, they have money because their older family or ancestors gained it during a time of wealth, and it stays with them. It's the opposite, once you have money it's hard for it to disappear because it gets invested into something else (like property). If money was easy to gain there wouldn't be so many struggling people, who don't even earn enough to buy anything beyond their basic needs. Even if people work a full-time minimum-wage job and save every single penny, without spending ANYTHING on themselves and existing solely to work every day with zero commitment to their lives outside of that, with the cost of existing getting higher-and-higher, they would still not ever earn enough to be 'rich' or own a house. Guess how I found this out? By sitting down and calculating my current expenses and wages and projected future. :)

@Bolidoo

4 ай бұрын

I disagree, poverty is a complex issue. Sure there are exceptions of poor kids that do great at school but generally children of wealthy parents, say children of lawyers, doctors, etc. do much better because their parents, even if not explicitely, teach them about the importance of education. On the other hand, poorer families tend to not value education as much. Children of poorer families tend to be more problematic, rebelious and generally do worse. Even with iq studies in poorer zones within the same country, get worse results than the richer zones. Does having money somehow make you smarter? Of course not, the influence children get from their enviroment truly is important. At the same time, it is absolutely the case that this is not the full story. Having money is a tremendous advantage. As the saying goes, being poor is expensive. I just wanted to give the nuance that poverty is, in my opinion, a complex issue.

I have the opposite problem, I am constantly looking at what I buy to the point where buying simple things like a dinner out gives me way too much anxiety. It’s so tiring constantly feeling like you are falling behind financially while hearing about others complaining about how they have not enough cars or yachts

@marskessler

5 ай бұрын

marketing is one of the biggest branches of capitalism and it is constructed to manipulate you, it is impossible to have a full comprehensive and objective conception of the market at any given moment therefore none of the choices can be a customers fault. You are not responsible for it. Billionaires actively brainwashing us every 10 mins on our phone screens are.

@norude

5 ай бұрын

My advice would be to calculate the money-saved-per-hour-of-worrying of such decisions. Then you can divide it by a misery factor of about 2. And then, if it is below your hourly wage (and it probably is) say, that trying to save that little money actually loses money and makes you more miserable. The key is making you believe that something is bad, to get rid of it

Sabrina's editing is next level and Taha's editing is sooooo unhinged I love itttt

@kikitauer

5 ай бұрын

Yes it is but there is at least one image stolen from the image bank. Not cool. Otherwise the video is very cool but this just makes me angry.

@lovell8983

5 ай бұрын

@@kikitauer what?

@kikitauer

5 ай бұрын

@@lovell8983 You can tell by the watermarks. Those images are not free. They are usually put in the image bank by the freelancers who hope to make money out of their hard work and use of their expensive equipment. I don't mean to s**t on the video though. I think it is a great video and we all need to hear the message.

@damiadeniji

5 ай бұрын

@@kikitauerusing images with watermarks is a meme. You’re allowed to use photos that have watermarks. AiP do this often in their videos.

@kikitauer

5 ай бұрын

@@damiadeniji No you're absolutely not allowed to use photos with watermarks when it is from Alamy for example. Which they did. I don't know about the meme stuff and it might be true but the photo from Alamy is stolen, period. Why the *** you think the watermarks are there? To be pretty?

School isn't to teach you how to be a good citizen. It's to teach you how to be a good worker.

@DizzyWhaleX

5 ай бұрын

Facts.

@Danilio.

5 ай бұрын

"I don't want a nation of thinkers, I want a nation of workers." -rockefeller

@FishyFinster

5 ай бұрын

Good slave*

@B_Van_Glorious

5 ай бұрын

A mindless worker is a happy worker Shut up and do your job

@occamsrazor1285

5 ай бұрын

@@B_Van_Glorious Heh. I've been fired from plenty of jobs precisely because I won't do that.

I think an additional part of the problem about financial education, is that the age that we are taught is counterproductive. Learning to manage finances when you yourself don't have finances means you're trying to learn about it without meaningful context or application. And unlike Maths, English, or other classes that iterate year over year hardly giving you time to forget in the meantime, my financial education was a single semester a solid couple years before I would graduate high-school, gain any sort of control of my finances, and try and apply knowledge that unfortunately is two years forgotten. I would rather see it become easier for fledgling adults to find access to high quality resources when the knowledge has meaningful impact on the finances that are now their own, than be taught to a child who has yet to see any meaningful way to apply what they've learned. Well, maybe both is better than one or the other.

@Archbishop_of_the_Noodle

5 ай бұрын

Not really. Minimum age to work tends to be 14 unless you are in outliers like New Jersey or Illinois. Two years before graduating is a perfect time to have it included.

@crymmt6329

5 ай бұрын

You hit the nail on the head. I suspect the biggest reason why people don't remember the financial literacy being taught in schools (as mentioned in the video) isn't just that it's inserted oddly, but also that high schoolers have no need for this information for several years, and as a result are unlikely to pay attention or be invested. How much do most people really remember about most high school subjects? How many people could do some basic trig formulas or calculate the velocity of a paper plane?

@kwanarchive

2 ай бұрын

@@crymmt6329 Maybe kids should respect school more? I don't understand why people like to blame schools for not making them remember things, and not making things interesting for them to remember. Guess what? Most things aren't interesting. Most things are just boring tedious. You just have to suck it up, learn it, and remember it. Even if you don't know why yet. They teach you basic algebra for a reason. Don't know why? Who cares. Just bloody learn it.

11:16 lol and we're immediately in the realm of fantasy. imagine only having to spend 50% of your income on things you NEED to spend money on.

@SageLegacy

5 ай бұрын

Just make enough money right? Also invest with another 10%. Also just pay debt ez. Also also work more because retirement won't cover your life.

@misspatvandriverlady7555

5 ай бұрын

More likely you spend 100% of your money and are still neglecting very real needs like fresh, nutritious food, medical check-ups, dental check-ups, that oil change the car needs, that overdue electric bill. Everything’s super easy if even 90% of your income covers what you really need to keep being functional and productive! 🤦‍♀️

@KimHmrs

2 күн бұрын

Depending on where you live, this is a possibility.

We were required to take a 1 semester econ ed class in my high school. I know they showed us W-2s and tax forms at least once but since it wasn't relevant to me yet, I didn't retain any info about it for when it was. The only thing I actually learned in that class was that student loans don't disappear if you die bc that was kinda shocking.

@Spi314

5 ай бұрын

I'm sure they talked about loans and probably credit cards and banking as well, but I didn't remember any of it even a year later.

@Josh_Quillan

5 ай бұрын

WTF happens to student loans if you die, then?

@Spi314

5 ай бұрын

I think it comes out of your estate (any money, possessions, property, investments etc that you own) before anyone can inherit your stuff? Or the debt is passed onto whoever gets your stuff? I could be wrong though. It does make me wonder though, if you bought a house with a mortgage, what happens to that loan if you pass away? Is a new mortgage negotiated with whoever inherits the house based on what's still owed and that person's credit then? Is credit card debt forgiven if you die? All I remember is something about other debts not sticking around in the same way that student loan debt does. I guess because you gained knowledge from what you paid, which is not something that another person can inherit in the same way as possessions. But I'm not actually sure how any of it works! If someone knows, please comment it!

@feline.equation

5 ай бұрын

@@Spi314i did a business minor in college, so i’m definitely not the most qualified to speak on this, but i think it depends on the type of debt you leave behind. ex: you are a single person with no kids or spouse and you die and your house has a loan. when nobody to takes it over, it’s the bank’s house. when my parents pass, their house goes 50% to me and 50% to my sister. i plan to buy my sister out of her portion, so basically i take on the remaining balance of their loan (they’ve refinanced a number of times, so i definitely anticipate them leaving behind at least some portion of a loan). credit cards are a little different because there’s not an asset the loaner can take like a house. if i die, basically they’ll take money from my estate. if i die after inheriting my parent’s house or cars and those are my only assets, basically they can take those assets. if i were to die with zero assets, it can’t be passed on to people who aren’t cardholders or consigners. i don’t think that’s very common, though. for example, i’m a cardholder of one of my mom’s credit cards. if she died in debt on that card, i’d be responsible for it. luckily, though, my mom makes good financial decisions and i don’t anticipate her passing anytime soon. federal student loans are discharged if you die. private ones may have other rules. (this is US, obviously) another thing to consider is life insurance. this is part of the reason i have it. i get a certain amount for free through my job with the idea that it could theoretically help with any potential outstanding balances i have if i were to die. i don’t have any kids or anything, but a little bit in life insurance can mean that my parents or sister won’t become responsible for paying off debts like a car loan, or being burdened with having to sell my car shortly after my death to cover (some of) the costs. my parents have gone to extensive lengths to set up trusts to make sure my sister and i are financially taken care of in the event they pass sooner than expected, and i plan to do the same if i ever have kids.

@jaxmader7309

5 ай бұрын

Student loan debt is also one of the only (if not the only) types of debt that can't be dealt with through bankruptcy. If someone files for bankruptcy because they don't have enough money to pay their debts, those will be dealt with and you won't have to deal with them anymore but student loans are still there no matter how many times you file for bankruptcy

I’m in middle school and we did this thing called finance park where we were given a person with a job salary possibly a family and we had to make a budget and then spend our money on things we needed and at the end our tablets calculated how our financial situation would be in 10 years and we also did a whole unit on finance in world studies so that something.

@sxmplyblossom8048

5 ай бұрын

that sounds amazing!

@jaxmader7309

5 ай бұрын

Unfortunately, that is often only done once. I'm in early grad school currently and I did a similar exercise back in high school. But to be honest, I don't remember much of it because I was lucky enough to have parents who have worked their butts off to be financially stable. It really needs to be a whole unit, if not a whole class, that is mandatory in school to be useful.

@calebhughes975

5 ай бұрын

Did the same thing in middle school and my highschool had a required personal finance class. At the end of the day it all boils down to "save as much as you can, and don't spend too much on 'fun' things" but that's just common knowledge. They don't factor in emergencies, they don't consider how much more expensive it is just to be alive today than it was when those courses were first made, especially when compared to stagnant income. The system simply needs to be reworked

@MisterKazoo

5 ай бұрын

@@calebhughes975 the solution is to make more money and be very very cheap. then either pay of debt or invest. if the investment will earn more than the interest you are paying, do that. if the interest is lets say 10%, and you would make 8% investing, pay the loans first. once you are debt free, just invest. and also have 3-6 months of expenses in a high yield saving account as an emergency fund

@alexisatuatara570

5 ай бұрын

We did that at my school too, it was neat but almost none of it stuck. Also, the workers very clearly didn’t want to deal with my school so they didn’t put in too much effort which didn’t help

I love that Sabrina, Taha, and Melissa each have their own style for their videos and their own brand of chaos

Something that really baffled me about this video was, that it never mentioned inflation much. If you Invest your money and you get a return of 4% each year, and inflation is at 4%. At the end of your career you will have the same purchasing power as at the start. This is something very important to understand! For an investment to be worthwhile it needs to beat inflation most of the time. But I'm also not in the demographic of this video, I do reasonable well financially and I am working on a degree in business and economics with a focus on finance.

@Basu117

5 ай бұрын

Inflation and compound interest are two big missing pieces IMO.

@U1TR4F0RCE

5 ай бұрын

I similarly think that I am not part of the target audience. I like with my parents so I should probably be saving much more than 20% as my necessities are lower cost

@BestOfSound99

5 ай бұрын

@@U1TR4F0RCE I am also living with my mother. I aim for around 80% which goes straight to my investments at the start of the month.

@Serena-or7sl

9 күн бұрын

Even in your case, though, having a return of 4% is still better than having a 0% return, or spending all the money. You basically trade current money with future money. You also add money to that fund every single month, so at the end of it you have more security than if you spent the money.

@BestOfSound99

8 күн бұрын

@@Serena-or7sl Thats partially true, however this is not the point I want to make. there're a lot of bad/expansive financial products on the market which will tell you how you will make 5% profit per year after fees. However after years you will check in and see that you pretty much gained nothing. being aware of inflation will make you choose better funds to invest into. You're only protecting your purchasing power and at that point its pretty much irrelevant if you spend your money today or tomorrow from an economic perspektive.

In response to "dont spend more than you earn", what about when my needs take up 100% of my income? I'll just die I guess

@misspatvandriverlady7555

5 ай бұрын

Yeah, living in poverty really drives home how few people in society really care if you’re housed and healthy or not. Gotta have those people dying on the streets to keep the wage slaves too scared to cause trouble, after all! 😒

@kwanarchive

2 ай бұрын

There are two sides to the equation - how much you spend and how much you earn. You can either decrease your spending, or increase your earnings. If you can't do either, yeah, you're pretty much f***ed. There is no magical advice.

The 50/30/20 rule is a great idea or guideline to spending, but it's becoming increasingly unrealistic, not just in the US. Necessities by now usually exceed 50% of peoples incomes, quite possibly regardless of their income bracket. So, those extra percentages have to come from somewhere, which a) may lead to a lower quality of life or b) makes saving money for emergency difficult or even impossible. Edit just to say that I really enjoyed this video, and it certainly is a great starting point to learning budgeting and what to look out for. You're doing the Internet a service!

This video has good financial knowledge, but it's not exactly applicable to everyone. I live in the U.S., and if you can be in a position of spending only 50% of your income on necessities while living by yourself, that is a huge accomplishment. Oh, and I remember budgeting being taught in my JROTC class in highschool (it wasn't taught well). My dad also had me read a book on managing money, which is where I first learned some of the stuff mentioned here.

Student debt in the US is so messed up, man. I had sizable student loan debt when I quit uni in the Netherlands but with a decent job I was able to pay it off in 6 years because there was practically no interest on it. High school should at least show for different majors / professions something like "this is how much debt you'll likely be in when you graduate; this is how much you're likely to earn". Plus maybe some reasonable numbers on living expenses so you have _some_ idea. _Then_ you can say the 50-30-20 thing.

The problem about cutting out credit cards entirely is, in the US at least, using a credit card *and paying it off* is very important to building up your credit history and credit rating, which is used in a broad range of contexts. Employers use it in background checks, landlords may use it to vet renters, and of course when it comes time to take out a mortgage or a car loan (hopefully a small one), a good credit rating might be the difference-maker in getting the loan approved (and it could save you a lot of money on interest too).

@kwanarchive

2 ай бұрын

The solution is easy - don't actually use your credit card to buy things unless you can pay it off right away (or weeks before whenever the interest kicks in). ie, use your credit card as a bank card. Don't use it to actually borrow money.

My biggest financial issue isn’t that I don’t know how to handle money, it’s that I simply don’t have enough of it to cover even just basic needs, and have no way of getting more. I’m disabled and can’t work, so I’m on SSI, which has a maximum of $943 for a single person but hardly anyone gets the maximum about (I don’t) so I’m expected to live off a few hundred dollars a month, forever.

@lilowhitney8614

5 ай бұрын

To be fair, these types of advice are for mostly for the general audience (who tend to be able bodied but feel lost about how to handle their money). For your situation you'll be better off looking for content that specifically covers it (rather than general advice which doesn't apply) or trying to talk to organizations in your country who work with disabled people and can advise you about your situation.

@mikki_s1100

5 ай бұрын

@@lilowhitney8614 just sharing my experience 🙂 The reason I mentioned it is because I feel like a lot of financial advice is operating on people actually having enough money to begin with, and while the disability part is unique to me, this type of financial struggle is becoming more of a problem. It’s definitely good basic advice and a good video, not discounting that at all, just trying to share another point of view that it’s not always that simple. And also to hopefully raise more awareness about SSI as a lot of people don’t know and are surprised by it

@rachellee5797

5 ай бұрын

If you've been on disability for awhile, you can look into things like Medicare and their supplements or advantage plans to help cover medical, dental, and eye care. There are also many programs that offer extra help like Rx plans, necessity spending cards, food stamps, rent and utilities assistance, etc. If you're able, I'd reach out to an insurance agent that specifically specializes in that sort of area. I do it for a living and do my best to take care of everyone since my dad is also disabled and the disabled community is very underserved

@ferinzz

4 ай бұрын

And if you did decide to start earning some money to cover the gaps you lose the ssi completely.

The feeling of seeing Adam Conover and now Grant O’Brian while directly referencing a dropout show makes me so happy, I love seeing my favourite things cross over

Man, I came to the comments to see people's life stories and how they relate but I'm so early there's no comments😭😭

@arzykr

5 ай бұрын

fr XD

@have_a_cup_of_water_08

5 ай бұрын

True

@fahrenheit2101

5 ай бұрын

Bro you're so early that you haven't watched the whole vid yet, chill.

@vincentngo9186

5 ай бұрын

​@@fahrenheit2101 to be fair while I watch videos I look in the comments section

@baileykeller288

5 ай бұрын

There's Grant

This is why I will always advocate for going to community college and state colleges. Please do not be taken in by the lies of private universities. They are nice, yes, but they are not necessary by any means. The piece of paper you're given at the end qualifies you for the same jobs whether it comes from Podunkville Community College or Ivyleague University. The difference is how you use it and how many good connections you make and opportunities you take. Save your money and invest it in a retirement plan or something.

@Kul3Kow101

5 ай бұрын

For the most part, I wholeheartedly agree with what you're saying. State/community college rules, and more people should be taking advantage of that. I will also say, however, it is still worth applying to some private schools - it's possible to get very need-based financial aid from certain ones. I was lucky enough to get into a private school in Boston and the aid I got covered 95% of tuition, making it cheaper for me in the end compared to a state school. Just something to think about

@MisterKazoo

5 ай бұрын

it depends on which field if you are getting the same jobs. and also the job isnt the only thing you are gaining from university. often the professors have done something big and have lots of experience. you dont want JUST textbook knowledge. also if you are going to school with super rich people you will make connections

@doujinflip

5 ай бұрын

​Right, a lot of the benefits of higher education come outside the classroom. In particular the spontaneous connections you naturally form in and in between classes, which a more elite school has a higher concentration of peers and contacts with more access to opportunities. Sure you could be just a technically competent having learned everything through random Indian instructors on KZread, but that "piece of paper" plays into the biases of gatekeepers like business owners and HR folks looking for something that makes you uniquely attractive out of probably thousands of competitors.

@jasonreed7522

5 ай бұрын

I'm from a pair of towns with 4 universities (each town has 2). 1 private liberal arts school 1 public (SUNY) liberal arts school 1 private tech/stem/buisness school And 1 public (SUNY) tech school. I'm sorry but the SUNY schools just aren't the same as the private schools. Sure the "piece of paper" might have the same title on it, but everyone (hiring managers and the gate keepers to employment) knows which school has better teachers, harder curriculums, and more in-depth coverage of topics. This isn't a slam against public schools like the SUNY system in New York, but the fact is they qualify you for very different positions than the private universities. One will get you a job as a lineman or other "technician", and the other makes you an Engineer designing the system who knows 8 layers deeper theory and has been tortured with second order differential equations until you intuitively understand the topic.

@misspatvandriverlady7555

5 ай бұрын

Others are making the point that you are more likely to get a better-paying job with the private school degree. I’d counter this is a huge risk; no guarantees of that, plus said “well-paid” job might be in NYC or LA where the cost of living will put you into de facto poverty. My advice to my son is to get a cheap 2-year degree at the community college and see if he can get an entry-level job with that; a lot of employers will help pay towards a 4-year or master’s degree so a young, bright (white, straight, non-disabled; yes, these all sadly make a difference, but my son lucked into every privilege except generational wealth) man can move up in the company.

In grade school math class, we played a game where every one had 10K (simulated) to invest in stocks for a month. Everyone loss money except the dude that didn't buy and kept everything in cash.

@alexreid1173

5 ай бұрын

Buying individual stocks is usually a terrible idea so yeah

@MisterKazoo

5 ай бұрын

first of all, the more risk you are taking on, the more reward. so if you do some less risky things you have less chance of losing money. also, you need to have diversity. investing in 100 okay things is better than investing in one bad thing and one good thing. finally, you are going to lose money, that doesnt mean you should give up. you should invest 1k, if you lose it invest another 1k, then keep going gradually increasing the money invested

@theepicgamer1196

5 ай бұрын

I did the same thing in high school and I ended positive. Don't remember how much, though. I didn't know about index funds back then and just chose companies I knew about. Grade school seems pretty early for that stuff, though. I don't imagine kids that age making great decisions without being given specific advice.

Paying off the smallest amount first does have one big advantage that's not just how you feel. It clears a debt which reduces your minimum payments. If you're the kind of person who doesn't have a lot of wiggle room in the budget for emergencies that may be worth paying more long term if it means a short term emergency doesn't cause you to miss minimum payments or borrow more to meet them.

@misspatvandriverlady7555

5 ай бұрын

So hurtle toward maxing out all the credit cards faster to have “savings”? Yeah, that makes no sense. My cards are paid off now, BTW. Finally have enough to live on. In my *40’s*! 🤦‍♀️

50% on necessities is a pipe dream. At minimum, just with groceries, rent / bills in general, and gas, 70% of my budget _must_ go to necessities. That’s why they’re called necessities. I then have about $825 to spend or save. That book is incredibly outdated.

@misspatvandriverlady7555

5 ай бұрын

Glad to hear 100% of your budget isn’t going to necessities and then you get to decide whether you risk the electric or phone getting shut off this month! At least you have SOME extra! 😮‍💨

In the USA, home ec and other such classes used to be much more prevalent. Generally speaking, school districts started lowering funding for those in order to increase funding for classes related to standardized tests and college. I personally only remember doing money stuff in math classes, but that was basically just using USD as a unit and not working on personal budget skills etc. As another commenter put it, schools are here nowadays to teach us how to be "good workers" who are compliant (at the very least, see the normalization of horrible schedules and heavy workloads). Shit sucks Oh yeah, also the 50% necessities doesn't really work for most people, at least in the USA. We don't make enough money to spend that little on necessities. Love to see Grant here! Maybe Adam can join too

@MegaLokopo

5 ай бұрын

What else are you spending money on? I have 80% of my income going to just rent, I make it work why don't you?

@pjschmid2251

5 ай бұрын

What is this nowadays with this Garbage About "school didn’t teach me to be a grown-up" 😭. Schools have never been there to teach you how to live as a responsible adult. They have always been there to teach you how to read, write do mathematics, science, history, etc. any home Ec classes that I ever recall having were basic things about sewing and cooking and never included how to manage your money. That’s what you have parents for. They’re supposed to raise you to be a responsible adult. If your parents failed you I’m sorry, but that really isn’t the school’s fault. I was raised and taught how to cook, clean, do laundry, balance a checkbook, and the fact that you shouldn’t spend more than you earn really wasn’t mentioned because it was kind of obvious. Everything we ever wanted wasn’t simply given to us we had jobs and saved for special things that we wanted. It was all part of being brought up to be responsible adults.

@sterlingodeaghaidh5086

5 ай бұрын

I was at first shocked to hear these skills were not taught everywhere. I come from a rural town in Kansas, and no courage isn't my neighbor, but I do serve him coffee on the weekends, anyway, my school taught those classes, financial literacy, home economics, entrepeneurship, on top of the stem classes, in fact they werent just electives, they were core classes you had to have. We were even taught government, beyond just how to vote, and into politics, what everything meant, how the system worked (to an extent), we were taught geography. To this, it was shocking hear how we didnt see these classes everywhere, we were not a rich town, hell, most people in my school had to be on lunch programs, but somehow we taught that stuff and I am thankful. I wish this was more previlant, I am glad we are starting to get there, but man is the road a long one ahead. As to why, the U.S educational system we know came about in the 50's as a response to the new baby boom generation and was geared to prepare the new generations to become good in the work environment of the time, 9-5, M-F work week, do what your told, regimented schedule, even the fact you don't talk to co workers was there to prepare people to the life of a factory worker and more. It stuck sadly because people didn't want to change, its a normal human psychology that we dont want to change how things are because that leads to vulnerability, the thought we have to face the unknown almost. This leads to a mindset of "I learned this way, my kids can learn this way too." when in reality, not only is that not ideal now, it wasnt even ideal back then, and we see that now, but those people still are in power so here we are fighting this fight.

@bananamittens

5 ай бұрын

@@pjschmid2251 Thank you! School isn't about raising kids. It's about giving them critical thinking skills and knowledge that they can add on to as they grow.

@MisterKazoo

5 ай бұрын

simple solution if you arent making enough money: make more money. there are hundreds of ways to do this on the internet, and u can learn for free and start for cheap. the best way to make money is employ yourself

I teach a personal finance course in the United States. North Carolina Public Schools requires an entire course for every high schooler. To be fair to everyone commenting here: this was passed two years ago. I got specialized training to teach it, and half the course (9 weeks) is budgeting (including the 20-30-50 plan and emergency funds), investing, taxes, credit formation, and loan management. I pull a lot from Next Generation Personal Finance, which is a New York based curriculum that has a great youtube channel.

Something that I noticed you didn't cover, but I absolutely know messes people up is the "recurring expenses no money" problem, where you signup for something on a yearly basis or every N months. Very often people treat this as "oh shit I've a €80 bill for my amazon prime this month!! I don't have it!?!?" The solution is to "amortise this cost", this basically means dividing the total price by the number of months that the cost recurs in. E.g., Amazon Prime is yearly, so you can have a "bills" account where every month you put in €6,70, and then when that bill comes round, you then have that money! It removes a lot of irregular stress around money. In my case, that's basically my budget: all my recurring expenses & how often they recur, both in original currency and local (e.g., domain names are often in USD and exchange rates can mess with you)

I hate the attitude of don't spend $5 on coffee every day, that's the thing holding you back from being successful in life. Yes, buying $5 coffee everyday does cost a little less than $2000 a year, but the fact of the matter is most people don't buy fancy, mocha frappe whatevers everyday. That's like saying, "going to an ice cream parlor every day costs a lot of money, why would you do such a silly thing?" Of course people aren't doing that, that's a crazy thing to assume that people buy that everyday. What is strangling the people of today's wallets is the stupid costs of being alive, spending money on housing, food, utilities, and transport. I live in a pretty suburban area and it costs around $2000 a month just to exist. That's an insane figure for just being alive with no fancy coffee, accommodations, eating out, or grand vacations every other year. I shouldn't need to make $30,000 a year to just be alive, especially when most jobs in my area offer less than that starting out.

@billclinton1235

5 ай бұрын

And this is why I refuse to go to America. Europe might not be a paradise but it's at least not this hellish and scary. I hope things get better and people realize the power they have and changes are made to improve the situation.

@ChaoticNeutralMatt

Ай бұрын

​@@billclinton1235i don't blame you. There are good things, but huge issues like that really overshadow others.

Watching this video I’m realizing I managed to have good basis over the years I’m just too poor to apply them correctly :’) being disabled sucks

Was almost all the way through the video before I realized this went up today. My debt has been on my mind a lot lately. Currently between jobs for... Complicated reasons that were beyond my control. That said: even before I lost said job I was avoiding thinking about my debt. I paid what I could, but I didn't have a plan. I've got about a dozen screenshots from this video pasted into a private Discord channel and I'm thinking about my budget. I know that I can tackle this. I know I need to forgive my younger self for putting me where I'm at with debt, stop thinking about the past, and start thinking about where I'm going next. This... Yep. It's what I needed to see today. Impeccable timing. And thank you.

@misspatvandriverlady7555

5 ай бұрын

Best wishes; there’s work out there. This was not the case from 2008-2020! 👍

@missdenisebee

5 ай бұрын

I hate past me, too :/ I’d like to go back in time exclusively to slap some sense into myself.

I was lucky enough to have a Social Studies teacher who taught us how to budget instead of having us write an essay because he thought it would be more useful to high school seniors than an essay - we had to find a job - if the per hour was not listed we had to call - then we had to find an apartment within out means that was less than a third of our pay so we could have room for utilities - which we were also required to call to find out how much an apartment of the size listed would run per month. He showed us how to budget so we had enough money left over so we could put some away every month. I'm grateful to him.

You need to make a video on how to make 6 figures monthly because I have read about investors making up to $650,000 within 5 months and I really want to know how to outperform the market and make a significant profit

@MakaiTruong

19 күн бұрын

To be 100% honest with you. I had the same question 4 years ago. I was confused as heck. Now copying other traders for over 3 years, I would like to tell you, YES copy trading is a good approach. Just keep in mind that the success of copying another trader lies in their transparency. Make sure you know who you are dealing with before copying them. My two cents. Goodluck!

@MercyDaugherty431

19 күн бұрын

proper research, good analysis and luck is what you need to make profit in this constant market decline.

@ChanaMay

19 күн бұрын

it's all about finding the right moment to take advantage of and generate colossal profit, which is why you need to do your research

@GunnarBlankenship

19 күн бұрын

Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.

@BruceSellers422

19 күн бұрын

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.

Balancing a checkbook is NOT taken care of by your bank. Your bank will process payments in the order they are received, and most businesses bill immediately because they want their money, but it is still absolutely the responsibility of the individual to know what they’re spending and if they have outstanding payments that haven’t cleared yet. I know so many people who find themselves suddenly overdrawn because they see $20 in their back account, spend the money, and then some charge from the day before, or a preordered product from months ago, causes them to become overdrawn. Also, doing a monthly reconciliation is a fantastic opportunity to see what you’re spending money on, and if your spending habits are in line with your personal properties. One of the biggest difficulties with teaching about money in school is how different the money situation can be between students. At my high school there were some students who were given $1000 from their parents to experiment with the stock market, and students whose parents were taking payday loans to pay rent. What can a teacher teach in class that is helpful to both of these students?

@3nertia

5 ай бұрын

Yeah but what I'm assuming you're unaware of is that some banks actually stack the payment processes so that they can charge you late fees. My roommate used to get hit with late fees literally every week (they're paid weekly) when they had Woodforest National Bank but now that they closed that account and now have one at a community bank, they haven't seen a late fee since ...

@alanboyle6751

5 ай бұрын

I’ve not seen a cheque book in nearly 20 years…might as well teach me to saddle a horse or string my longbow. Cheques are a thing of the past.

@ludwig2345

5 ай бұрын

It's impossible to even use checks at all in my country. Everyone uses credit/debit cards

@tremkl

5 ай бұрын

@@ludwig2345 Balancing a checkbook isn't about having a checkbook, strangely enough. Like, technically it would more accurately be called bank reconciliation, but nobody really calls it that. The idea is if you swipe your card, you should know that you have spent that money, and when you check your bank account and it says you have $50, you should know whether you actually have that $50, or you have $10, because the $40 of gas you spent two days ago hasn't come out of the account yet.

@tremkl

5 ай бұрын

@@alanboyle6751 I just explained to another comment, so I won't do the whole thing again, but the point is about knowing which transactions you have already made have cleared your bank yet or not. It doesn't matter whether that transaction was made with a check or an ATM card.

I was taught a lot about money growing up, including in school, but the kinds of things were not the most actionable or sensible ... Like I was taught about making a budget, but not prioritization and getting a sense of my individual values.

@danielsykes7558

5 ай бұрын

7:15 HA!

@MegaLokopo

5 ай бұрын

I was taught to balance a checkbook, you already know how many times I have done that.

@alexreid1173

5 ай бұрын

@@MegaLokopoMy school made us learn how to use checks in 4th grade when we were like 9. I have literally never written a real check in my life

@MegaLokopo

5 ай бұрын

@@alexreid1173 Same here, And even back then it was clear as day I would never write a check in my life.

@racool911

5 ай бұрын

@@alexreid1173As much as I write in cursive lol

Yes, a good way to connect deferent communities with Grant O' Brian. + Facts about the queen.

It's easy to say "cut down on spending" but no one really talks about what to do when your bills take up everything. I'd love to see someone who had real advice on how to get out of that kind of situation.

@kwanarchive

2 ай бұрын

But there's nothing you can do except cut down on spending, even if it is your bills. You just have to find a way of cutting down your bills. There's no way around it. There's no trick to it. If you're doing to drastically cutting down your utilities use day-to-day, then you're f***ed.

Total Forgiveness is one of the most amazing shows I have ever watched but it's terrifying and sad.

@SageLegacy

5 ай бұрын

I really like it because it feels like a real show created from their stress and desperation to help themselves. It's very sad but they are using their knowledge and resources to help themselves at the same time making content. We just live in a sad time where student loan debt is content despite the stress they actually have.

We aren't comfortable planning our financial futures because we don't feel like we have one to look forward to. All we can do is our best. That doesn't provide opportunity for retirement though. My focus is on making sure I have enough of a buffer to not end up homeless in any foreseeable situation. That leaves no opportunity for me to even get the continuing education that I need to go for my actual career goals. They're society benefiting career goals, not financially benefiting ones. So loans would just tank my entire life and increase the destitution risk rather than decrease it.

People in rich countries talking about budgets sounds so wierd to me, like, what do you even mean spending 30% on wants. Where I live it's more like, spend 200% of what you make on basic necessities and then die.

@misspatvandriverlady7555

5 ай бұрын

Don’t worry, we have homeless people who can’t get healthcare here in the US of A, too! 🙃🙃🙃

The thing about finances is that they're full of contradictions, like don't use credit cards, but you can't get a place to live without a credit history, so you have to use credit cards. 50% for needs? well, your rent is 200% of what your job pays so you need to work 2 full time jobs just for that. Your investment needs to pay off in 20 to 30 years, but the company you work for wants to see returns every quarter or else you lose your job, your wages stagnate, or you work more for less. It just doesn't work out, unless you get lucky. And here is where everyone says you need bootstraps and not realize what they are saying is a contradiction to many others' lived experience.

@Serena-or7sl

9 күн бұрын

They said "don't use a credit card if you know you will misuse it".

This video couldn't come at a better time for me. I just graduated, I'm months away from getting my title and I'm about to have my first job next year. I live in Mexico so my conditions are different and I don't have to think about rent but the idea of using money well, knowing how much to use, how much to save and how much I can actually enjoy is still haunting. Not even life here is cheaper or easier

@amirmirzaei3940

5 ай бұрын

Just pay debt as fast as you can, thats the only tip you need

The fun fact with debt, is that sometimes it's better to take debt even if you have the money, because you can use the money to make a bigger interest than the interest of the debt you would take.

@guyman1570

5 ай бұрын

That's an extreme limited case. Almost every debt will cost you MORE than what you "make out of it".

@ShaharHarshuv

5 ай бұрын

@@guyman1570 That's not true. Debts like student loans or mortgage will not necessarily cost you more. It's a more complicated and neuanced approach to investing and should only be exercised if you know exactly what you are doing. This will not always be true. Also these kind of things are generally more accessible to the rich, which usually have a lot of debt.

This is fine advice for folks who are earning enough money to start with. Few people have control of their overhead. When your income potential and options are limited, budgeting is useless.

@misspatvandriverlady7555

5 ай бұрын

A LOT of people are pointing out that just the rent/mortgage is often around 50% of people’s incomes! This is the ACTUAL problem!

Love the attention given to shame, avoidance and acceptance. I sense a common theme with Taha's previous work on procrastination, and I'm here for it.

This video is a solid miss. The 20/30/50 is a beautiful concept, from a time when life was different. Learning personal finance does nothing if you don't have the personal finance.

@a_person5668

5 ай бұрын

Exactly

@cfromnowhere

5 ай бұрын

No amount of financial education can fix increasing socioeconomic inequality.

@JohnEvans-bc3mk

5 ай бұрын

Yeah, little to no mention of systemic issues and the comment section is toxic as hell. The vast majority of this video is only relevant to people making far above their local median income as median rent at best is about 50% of median income in US cities, let alone all other necessary expenses.

@prunusserrulata7686

5 ай бұрын

That's why 'be realistic'

@TheNewblade1

5 ай бұрын

I'd argue that's why they dnt teach it to us in school. It's too readily apparently b.s.

"Especially in Europe, where public transit is generally pretty good" *Cries in Bald Eagle*

@misspatvandriverlady7555

5 ай бұрын

I hear the public transit is functional in NYC… you know, that least affordable city to live within an hour’s commute of? That place? 🙃

My financial plan: fake it till you make it.

I used to stress about money, and I'd scrutinize my spending trying to make sure I was still saving money as well as getting my needs met, often seeing that I spent everything I earned or close to it, and then I started making more money and realized that life and finances are much MUCH less stressful when you actually make enough money. Learn about budgeting all you want, but the problem is society isn't supporting a large chunk of our population, and no amount of penny-pinching changes that. Remember that in the next election cycle.

@misspatvandriverlady7555

5 ай бұрын

Yep; when my husband died last year, my costs went down but the amount my family got from social security (he had been on disability prior to his death) went UP! So, yeah, I can pay my bills much more easily now, go figure… this makes me very uneasy, as many people who end themselves “believe” they are a financial burden to their family… that may often not just be a “belief”… 😬

Might be a weird corner of my world, but thanks for not mentioning Dave Ramsey for this whole video. Really means a lot.

"the financial education you received in school was probably outdated, so let's fix that! you should be spending 50% of your income on necessities" yeah chief that was already outdated 15 years ago lol

@misspatvandriverlady7555

5 ай бұрын

People are lucky to be spending less than 50% of our income just on housing! 🫠

Thanks so much for this video! I never knew how to spend money, just save and let it sit, like you used to. And then when I got more as I got a job I couldn't stop spending!!! It's a hard to find emotional balance, but luckily budgeting and math can help, thanks for reminding me of that.

I'm of two minds on this video. On the one hand, I think it's a worthwhile topic, and explained in a straightforward and entertaining way, probably a good starting point that someone can build off of. On the other, it seems to be pointedly avoiding talking about one of the biggest challenges when it comes to finances: predatory financial practices and hostility built into the system. Technical jargon used to make a system opaque so that regular people can't navigate it. Otherwise optional purchases made mandatory by laws or circumstances, often controlled or at least influenced by people making money off of the fact those needs are inflicted on people. Debt structures that are deliberately obscured so they're harder to get out of, because the longer you're stuck in debt the more money made by the company you owe while they neither need to put in any effort or provide any value for the money they're making. I assume it's because understanding all that isn't always helpful, sometimes it's just depressing, and the way someone gets out of a crushing financial situation is by setting it aside for a time rather than confronting it. But the way things are going, I think we're going to need these things, and they're what we'll really need to find solutions for if anything worthwhile is going to happen.

@misspatvandriverlady7555

5 ай бұрын

I pointed out that our system takes freshly-minted 18-year-olds with zero adult life experience and within a year can easily saddle them with $50,000 in student loan and credit card debt, whether that ends up bettering their job prospects or not. Then all the budgeting in the world can’t help them! 😕

I actually was taught about money in school by multiple teachers. For example, one class I had in middle school had us take a budget and see what you could buy to live of. But hey, I'm just one random Texan that probably got lucky this was during the 2010's

@mineton1293

5 ай бұрын

At least at my high school financial literacy was a required course. Though it might not have been the most comprehensive class, it was better than nothing.

@noisemaker432

5 ай бұрын

We did a similar budgeting project (and oddly, it was in a theology class? I can't recall why we did it in that class, but it's better than nothing). My main take away was "wow, it costs so so much money to live a basic life, and that's assuming you're doing everything you can to save money, earn money, and not buy things I want all the time. If one things goes wrong in life (injury, accident, natural disaster), I'm basically stuck in debt forever."

THANK YOU! I run a VERY small high school in the US and as a community we decided that our students needed more personal finance literacy, but as teachers we have almost NO training on how to teach it! This is a great jumping off point.

I get what you're trying to do here Taha, but you fall into the trap that everyone says when talking about good money habits, and that would be: "don't be poor." The federal minimum wage in the US is $7.25/hr. So if you work a full time job (40 hrs/week), we'll say 4 weeks in a month to make it easier to calculate, that's $1160 a month. Now lets take out a VERY conservative 15% in taxes (again, just to make it easy to calculate) you're looking at $986 per month. So with the 50/30/20 rule, that's $493 for needs. Average rent in the US is $1700 (first result on google). So i hope you like sharing what is likely a 2 bedroom apartment with 4 other people. Now, you could get another job, sure, but then you have to decide if that work life balance is worth it.

@Cynthia63636

5 ай бұрын

Exactly.. "just earn more money than you spend" lmao just don't live in a house or eat food every day ig...

@thekingoffailure9967

5 ай бұрын

My needs are 80% of my income and I dont buy clothes.

@SageLegacy

5 ай бұрын

I totally agree with this comment, even his qualified financialist touts the idea that money takes time through small investments is narrow in the idea that many college students like Grant and Ally scraping by don't have luxuries of investable income or the prospect of time or a future. I get he's trying to do the basic catch up of good financial investment but schools don't want that because it doesn't help the schools past good college acceptance. That's what they go for as it's what gives money toward school programs from govts. I'd much rather a break down of school's intentions how we can break that cycle rather than another fast and broad finance 101 video. Even before the ad break, I get side hustles are good for more income obviously but this is the unfortunate problem of accepting the normalization of underpaid jobs like teachers, grocery stores, and other essential positions.

@mikki_s1100

5 ай бұрын

Exactly, spot on. My financial problem isn’t I don’t know how to handle my money, it’s that I simply do not have enough of it

@misterkite

4 ай бұрын

In Arizona, the minimum wage is $13/hr.. so just moving to another state has *doubled* your income... and average rent in Tucson for a 1 bedroom apartment is $977.. so you've also cut your living expenses in half. Amazing.

Percentage rules may work as rough guidelines for people with median salaries, but for anyone with low or high income, they are pretty useless. Even if most expenses have a range (cheap vs expensive car), there is always a lower boundary that you cannot cross. Or a tradeoff where you need to spend much more time/energy to save money (cooking vs takeaway, walking vs driving, ...). Which then means you may have less time/energy to earn money as well (which may include studying for a better job).

@misspatvandriverlady7555

5 ай бұрын

Yes; time and energy are also finite resources, but talking about those leads to accusations of being “lazy” and stories about how people managed to work full-time night-shift jobs and still ace college. Well, kudos to you, not everyone can do that! 😒

We didn't just get taught about money in school, we even visited a local bank branch in primary school and a national bank HQ in high school. At the local bank, I was impressed by the brand-new building's pneumatic tube system. After visiting the national bank HQ in Amsterdam, we went to a café, and I remember listening to a former sailor telling wild stories about his life. In other words, these lessons are forgotten because teenagers aren't interested in learning financial responsibility - even less than factoids about the Queen.

I'm saving this video for the aging-out foster care program my wife and I are building in LA. Thank you!

I find having at least one credit card is super important when you're young to help build your credit score, but you really need to remember to pay it off. Just us it like you would a debit card and pay it off every month. I've had many friends my age who couldn't get a loan because of no credit history.

@misspatvandriverlady7555

5 ай бұрын

One credit card is really all you need, but you do need one for all kinds of nice stuff like being able to shop online (some items can’t easily be found in stores), building a credit history, being able to book hotels, rental cars, and flights; or even being able to buy an expensive item (like a car repair) without carrying around easily stolen items like a checkbook or a lot of cash. If a credit card is stolen, you just report it and any fraudulent charges get canceled. You only need ONE Visa or Mastercard for these purposes, though. Credit cards are very easy to get and very hard to get rid of, and the more you have, the easier it is to lose track of what you’re spending and how much you owe next month! 😬

Once I was complaining about this exact thing to, of all people, an accountant. I was like "if I were taught in school about this stuff I wouldn't have to feel so stressed and I would actually have more control over my finances". And his response was, simply, "if you were taught all of this in school, I'd be out of a job". I've never wanted to punch someone in the face more than that time...

Ah yes. Because it’s always possible to have essentials only take 50% of your earnings and always possible to make enough money to save any in the first place.

@misspatvandriverlady7555

5 ай бұрын

Just get a job making six figures in a low COL area! So easy! Why isn’t everyone doing this? Silly people! 🙃🙃🙃

For the entirety of the sponsor segment I was crying at how amazing the segway was

gran turismo 3 and 4 taught me more about money than my high school financial education class. yes, you read that correctly, gran turismo. not grand theft auto, gran turismo. you will be forced to learn how to budget your races with your car parts and services and saving money by buying a customizable transmission and suspension etc enabling you to enter that one-time purchased car into a broader spectrum of races and tournaments, and for whatever reason all of those challenges somehow translated into real life budgeting for me. i dont know how, it just did.

A lot of great advice here, but it seems like the scales of our financial problems are just way bigger than previous generations. A car, college, a house were all a couple years of working and saving to achieve back then, so you could really take things step by step and it wasn't a big deal if you made a mistake and learned from it. Today's students are forced to gamble with a college degree with decades of poverty on the line. I don't think any amount of personal finance tips can prepare someone for that kind of decision.

@WyvernYT

5 ай бұрын

Sure. You've probably heard senior citizens talking about "working your way through college." They say that because when they were twenty, people could do that! The buying power of minimum wage was higher and tuition rates were much lower; people really did just get basic jobs and take some classes.

@lilowhitney8614

5 ай бұрын

Oh definitely, people today are struggling much more economically. However, that doesn't mean you're completely helpless to try to make your circumstances better.

Great financial advice for the top 5-10% of earners! The rest of us don’t make enough compared to the cost of living for any of this to be valuable information.

@amirmirzaei3940

5 ай бұрын

no the advice works fine for everyone. I make like 10k a year after tax and I'm not stressed about money

@SageLegacy

5 ай бұрын

​@@amirmirzaei3940i live in CA so 10k doesn't even cover rent for the year. Too many variables to have a KZread video help with financial advice. It's not "wrong" advice but i imagine even Grant wouldn't get anything out of this video that he didn't know or can apply immediately

@amirmirzaei3940

5 ай бұрын

@@SageLegacy Then don't live in Californian. I am so sick and tired of people complaining about living in the most expensive states and cities like LA, NYC, Las vegas, Miami, and complaining about unaffordable rent and housing. Move and live in another place, because in so many places , 30k is enough to raise a family even

@misspatvandriverlady7555

5 ай бұрын

@@amirmirzaei3940You offering jobs in those low COL areas and a few thousand dollars to move? 🤨 BTW, I live in a cheap area, and you must live in a small, paid-off house and use public transportation if you can live on 10k a year… 🤔

I used to watch only Sabrina's videos but as I subscribed I started to know more about your content and Melissa's. You all rock! You are such an awesome team!!!

Regarding the strategies at 17:52 I’ve been using the second option. It’s incredibly satisfying to eat away at the smallest loan and snowball that momentum

Most of what you say here makes sense as fundamental stuff we ought to be taught at school (assuming you can pass the hidden "Step 0: live in a situation where it's possible for you to make ends meet at all" requirement), but I have to tell Pete Matthew, we were taught how to do simple calculations at school, sure, but we were not able to apply that sort of stuff on realistic problems. But at no point were we taught anything about stuff like tax - how tax works, how to pay it, which taxes to pay, how it varies - or what inflation actually is or how interest rates work, or how benefits and welfare systems operate; THAT stuff is actual useful financial literacy. Teaching the average person about investment is like teaching 12-year-olds Chaucer; you'll get a couple of people interested but for most of them, it's useless information they will never use.

school is teaching me about money and it is not some "money school" and it is not a small part of another subject. It's its own subject. It's called "Wirtschaft und Recht" which in english means "economy and law" and it's being taught in the normal highschool I go to.

@expired___milk

5 ай бұрын

to be fair, I don't live in america.

@FelicityUwU

5 ай бұрын

Fair enough.

@loft777

5 ай бұрын

that's a very good advantage @@expired___milk

@darthbigboy7978

5 ай бұрын

Witchcraft and retch ?!

Thank you so much! This video is what’s I’ve been looking for for a really long time! 🙏

this was indeed very helpful! it took a lot of the stress around money management for a zoomer who's dying in college, thanks taha

Recently I was thinking back to the financial education I did get in highschool. We started out using real numbers for income and expenses, but very quickly the teacher had to have us start using made up numbers because otherwise it didn't add up. I remember thinking, how is this helpful, how are we learning to make it in the world if we aren't being realistic? About 10% of my classmates still live with parents and we graduated 20yrs ago 😔

@misspatvandriverlady7555

5 ай бұрын

My son’s father and I have been apart since son was an infant, and naturally, his father has always been salty about child support (he supposedly wanted son; he was NOT a “surprise”!), making “What is your mother DOING with all that money?!?!” type comments to an elementary-schooler. Then, son went with me to do the weekly shopping at Wal-Mart when he was 12. We overfilled the cart and the total came to over $300 just getting the basics to get our family of 4 through the week. Son was like, “That costs THAT much?!?” “Yep.” “And you have to do this EVERY WEEK?!?!” “Well, yes; I have to take care of my family!” “Well, now I know where your money is going!”. A good life lesson! I also had to appraise him regarding the costs of decent houses and cars around age 7 for similar reasons. 🤷‍♀️

In my high school, we had a semester of a class called "Consumers Education" that delved a bit into personal finance, the only rough part was that it was trying to get 14-year-olds to take insurance premiums and blue chip stocks seriously

incredibly well edited! wow! and thanks for sprinkling in the memes here and there, honestly it helped my understanding of the subject. i've been taught a bit in school (and do remember it) and tried to read up and figure it out, but it so often just turns into numbers without meaning, but this idk portrayal made so much sense! well done, once again, taha and the team

Normally I avoid thinking bout my finances so this video definitely gave me a bit of a wake up call. Great and very informative video

I agree. As an american i too wasn't properly taught about money. Instead i felt like they focused way too much on paper writing, obscure history, and facts about the queen.

This is why i love you guys! What a great helpful introduction to clear our heads and give us some sort of "north" as to what to do. Everyone around me says stuff like "you should know that" and never bother to explain things, this video literally comes to me at a perfect timing as i just graduated, got a job and have realized that I'm constantly stressed with anything money related because i don't know what to do when i have it, when i dont, and when i need it.

There are a lot of things related to personal finance that we learn in school. Even something like the difference between exponential growth and linear growth is something that's often taught using money in its examples. That can be an important understanding to have when it comes to investing, but most people forget about it after their exams, because they're just not interested in it enough to retain the information.

This might actually be one of the most important youtube videos I've ever watched. thanks taha :)

my cousin taught high school economics, never heard of the money multiplier. it was personal economics, taught kids to get loans and credit cards. merika school system, teach 'em what you want 'em to be

Watching this video after just setting up a budget and having to figure out how to do it all by myself hits different

Man, this is my fav Taha video. This is your master piece, bro

Wonderful episode! So relevant, honest, and practical, thank you!

This was the most sincere, honest and informative video talking about money I have seen in a while if not ever. It's nice to talk about the shame we feel around debt and also trying to use our money to feel happy. Thank you! :)

damn its weird seeing an answer in progress video that isn't from 8 months ago 💀

@qwertt14

5 ай бұрын

which is really weird since the last ones were 5 days, then 4 weeks ago

Taha, big kudos to the actually hilarious way you scripted and edited this video. I feel like you've stepped up your game, but the way a kid tries to step up as many steps in one stride as possible to beat their older siblings to the top. In any case, wanted to point out it's noticed, it's appreciated, and I can't wait to see more of this wonderfully dryly chaotic energy! I love how each presenter on this channel is allowed to have their own unique video style that they can make their own ❤

I really love this account. It's always a high quality video but you never know what the topic will be until it's out

Shout out to my school for having business and finance courses, and my AP Lang teacher for weirdly turning his class into a Microeconomics course. Like bro had us write a synthesis essay about shopping culture and the manipulation of the lower class via advertising.

Another piece of advice I wish I learned a lot sooner. Have your savings account with a credit union rather than a bank. They tend to have waaaaayyy better interest rates and also tend to support a local community rather than an evil major corporation. I have my checking with the big bank for money I need quick access to (they have branches and ATMs everywhere) but most of my money is with the credit union.

Thanks Taha, interesting reflection. Thanks for the emphasis on taking multiple perspectives and doing what works best for your reality

"Never believe a single source, consider lots of different viewpoints and a consensus will emerge". That is just a fantastic lesson for many facets of life.