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In this video, we’re going to cover The Top 7 Reasons why most people are BROKE and how to fix each one of these problems.
This isn’t going to be a video telling you that you eat avocado toast too much or that you drink too many extra lattes in a week.
This video is going to focus on BIG issues and BIG wins for your financial life!
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⏰ Timestamps ⏰:
0:00 – Intro
0:28 – Why You’re Broke Reason #1
2:11 – Why You’re Broke Reason #2
3:55 – Why You’re Broke Reason #3
6:01 – Policygenius Spot
7:16 – Why You’re Broke Reason #4
8:18 – Why You’re Broke Reason #5
9:57 – Why You’re Broke Reason #6
11:19 – Why You’re Broke Reason #7
13:53 – Keeping up with the Joneses
Instrumental Produced By ”iAmHaywood” on IG
ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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Hey everybody welcome back to whiteboard Finance thanks to policy genius for Sponsoring this video but more on that Later in this video we’re going to cover The top seven reasons why most people Are broke and how to fix each one of These problems this isn’t going to be a Video talking about that you eat avocado Toast too much or that you drink a few Extra lattes in a week this is going to Focus on big issues and big wins for Your financial life to get you out of Broke hood Broke hood brokenness You get the idea stay tuned number one Is pretty obvious you don’t make enough Money you have a low income so this First one sounds like a no-brainer but Not making enough money is truly the Root cause of most people’s problems With money to begin with you can’t out Save your way out of a small income just Like you can’t diet your way to building Muscle no matter what your savings rate Is if you don’t make enough money and The cost of living is eating you alive You will never be able to get ahead and You’ll be on the hamster wheel forever This is why some families suffer from Generational poverty or they’re no Better or worse off than their parents That came before them you have to focus On making more money if you’re not Making enough so how do you do that so
I’ve recommended this in my videos for Years but the easiest way to make more Money or make more income is through Increasing your marketable skills you Have to ask yourself what skills does The marketplace value figure that out And you will make more money it’s no Different than being an entrepreneur and Figuring out what problem the Marketplace needs to have solved so here Are some examples High roi degrees such as science Technology engineering and math working The trades with the intent of working For yourself down the road blue collar Jobs are looked down upon but most People don’t know how to work with their Hands and that’s only getting worse and Worse as time goes on Also changing jobs every few years with Large pay jumps every time this is a Great way to boost your salary and also Starting a side hustle or a business While working your w-2 job that’s what i Did when i worked in finance taking the Next step in your career such as a nurse Becoming a nurse practitioner this is Low-hanging fruit that pays Significantly more so by using these Tactics you can sometimes even double Triple quadruple what you’re making now Thus eliminating problem number one Which is you having a low income number Two is that you don’t save enough so
Being able to save money is a sign of a Disciplined person okay in our previous Example of people not making enough Money we said that we can’t out save a Low income let’s take a look at the Exact opposite for example so there are Plenty of examples in society of people Who are highly paid but end up losing it All due to their little to no savings Rate there are countless examples of Professional athletes celebrities even Highly paid professionals such as Doctors who don’t have anything to show For all the money they made throughout Their careers the reason for this is Simple most of the time they aren’t Saving as much as they should and even If they were they’re spending at a rate Like the money they’re making will never End this is where you run into trouble This is also a form of lifestyle Inflation which we’re going to touch on Later in this video so what is the Solution to not saving enough obviously The solution is to save more duh but That’s an oversimplification you need to Pay yourself first if you pay yourself First out of the money that you know you Will make consistently you will never Not save enough because you’re paying Yourself first so let’s give a quick Example so for easy numbers let’s say That the smith household nets 100 000 a Year a healthy after-tax savings rate is
Anywhere from 20 to 30 percent this Tells me that the smith household should Automatically put away twenty to thirty Thousand dollars a year or roughly two Thousand dollars a month in order to Meet their savings goals so from here You can easily divide this twenty to Thirty thousand a year into different Savings buckets you can have a travel Bucket a house fund bucket a savings and Emergency bucket and anything else that You may be saving up for this way you Know exactly if you’re able to afford The things that you want Simple the third reason why you’re broke Is because you drive too much car Driving too much car is the easiest way To destroy your wealth okay it’s a Wealth killer that’s the easiest way to Destroy your wealth building dollars so Instead of this money going into Investments that earn you money most People buy cars that depreciate over Time i’m not talking about classic cars Or 911 porsches which appreciate in Value if you buy it right i’m talking About your honda accord that’s sitting In your driveway losing money as we Speak the median household income in the United states was 67 521.2020 the average car payment for new Vehicles is a record high 644 With an average length of 64 months let That sink in 644 times 69 months equals
44 436 dollars you are literally driving Around in your household income okay or At least two-thirds of it the reason People buy too much car is because of a Few reasons some people are new Graduates and get their first big boy Big girl job and start making more money Than they’ve ever made before so they Feel like they deserve it other people Justify it okay they want a safe car for Their family so they end up buying a Brand new suv going over the top Other people will say hey marco i’m a Car guy my car gives me immense pleasure Which i understand however the way to Buying a car responsively if you want to Finance it is by using the 24 10 rule so Put at least 20 down to finance it no Longer than four years and the cost of Owning the car including insurance and Your loan payment is less than 10 of Your gross monthly income if you can Meet this criteria buy whatever you want I don’t care the best way to buy cars is By finding a private party and paying Cash But you need to know what you’re looking For and if you want to do it that way You can always have your mechanic do an Independent inspection as well my dad And i have been buying cars for years From rich people who maintain it they Take the depreciation hit we basically
Drive them for free or end up making Money depending on the car over time So speaking of cars we’re gonna go into Number four which is buying too much House But before that a word from today’s Sponsor policy genius do you already own A home or car rising inflation rates are Causing concern around the country did You know that one of the easiest ways to Instantly save money is by reshopping Your home and auto insurance using Policy genius customers have saved an Average of one thousand two hundred and Fifty dollars per year over their Existing policies if your home or auto Insurance policy is up for renewal or if Your rates have gone up because of a Claim let policy genius do the work to Look for a lower rate policy genius is Your one stop shop to find and buy the Insurance you need and getting started Is easy first head to policygenius.com Nwbf and answer a few quick questions About yourself and your property policy Genius will show you price estimates for Policies that fit your needs and help You find the best option their team of Experts will look for ways to save you More especially when you bundle your Home and auto policies together the Policy genius team works for you not the Insurance companies if they find a Better rate than what you’re paying for
Now they’ll switch you over for free Policy genius has saved customers an Average of one thousand two hundred and Fifty dollars per year over what they Were paying for home and auto insurance Head to policygenius.com Mwbf to get your free home and auto Insurance quotes and see how much you Could save number four is a quick and Simple one you bought too much house Being house poor is one of the fastest Ways to make sure you remain broke for The rest of your life house poor is a Term used to describe a person who Spends a large proportion of his or her Total income on home ownership including Mortgage payments property taxes Maintenance and utilities Especially hoas and all the other stuff Which i won’t talk about not only will Too much house suck your finances dry But will also prevent you from living a Comfortable and enjoyable life you’re Not comfortable want to travel overseas Sorry you bought too much house can’t Afford it want to switch jobs because You hate your boss sorry you bought too Much house it’s too risky to quit now Want to retire before you’re 60 not Possible too much house Danger danger too much house I may leave that in Don’t buy too much house if you want to Know how to much house you want to buy
Check out my house buying videos i’ll Link it in the description below i also Have a home affordability spreadsheet Which you can get down in the comments Below thank you Reason number five why you’re broke is That you are too comfortable humans are Creatures of habit which keeps us in our Comfort zone most major life changes Come from getting outside of your Comfort zone whether it’s starting a Side business whether it’s asking for a Raise whether it’s pursuing a new career That will pay you more or even going Back to school as mentioned earlier in This video you need to be able to get Outside of your comfort zone in order to Succeed if you operate in your comfort Zone 24 7 365 this is called being Complacent complacency kills the reason I say this is because i used to be Guilty of this let me know if this Sounds familiar i would work all day i Would come home i would try to get a Workout in and then i would eventually Eat dinner watch a show or read then get Ready for bed just to do it all over Again the next day repeat this five days A week monday through friday and the Next thing you know five years of your Life have gone by without you even Realizing it i was able to break the Cycle right here By not being complacent and by starting
This youtube channel your solution of Being too comfortable may be different Than mine but what i would recommend to Everyone is to identify all the things That take up most of the time in your Life instead trade those things for Something that will get you outside of Your comfort zone okay so instead of i Don’t know watching netflix for three Hours a night why not start a blog why Not you know start a channel why not Start something start some sort of Consulting business take whatever you Are a subject matter expert in and Spread it to the masses through youtube Social media tick tock there’s a million Different ways to do that now if you’re Introverted and don’t feel comfortable In front of a camera or in front of Social media there’s so many other ways To start a business all you have to do Is think outside of the box and get Outside your comfort zone okay number Six is that you think short-term you Have no goals having long-term goals Gives you purpose in life if you’re Simply clocking in and clocking out day After day with no goal or purpose it’s Easy for you to give into the short term Pleasures in life because you don’t even Know what you would sacrifice these Pleasures for without having any Long-term goals in the first place every Successful salesperson that i’ve worked
With throughout my career loves two Things uh being deep into debt and Having kids They use both of those things as Motivation So now i’m not saying go into debt and Pop out seven kids but this was their Version of a long-term goal In my opinion this is very short-sighted But hey it works for them what i would Recommend is going through a Visualization of who and what you want To be 1 5 10 and 20 years from now okay So you want to visualize yourself this Exercise forces you to think about how You can get to these milestones both Financially and lifestyle wise if 20 Years from now you want to have a Mansion and three lamborghinis well you Need to reverse engineer that and figure Out how to achieve that financially if Five years from now you want to be Married and have a house you need to Figure out how to start saving for a Down payment if 10 years from now you Want to have an established career in a Certain field you have to start thinking About what education and jobs you have To have before that dream Career becomes true so think long term And have a goal you have to think about The milestones okay finally number seven Is fomo keeping up with the joneses the Joneses can kiss my assets keeping up
With the joneses is the fastest way to Become broke and unfulfilled keeping up With the joneses is measuring your Financial success against that of your Peers and letting their spending Behavior influence your own your buddy Buys a sports car you want to get a Sports car Your neighbors go on an extravagant Vacation now you get the itch to go jet Setting as well your friends send their Kids to a private school now public School isn’t even in the question Anymore right So on and so forth comparing yourself to Others is a fool’s errand this has only Been perpetuated exponentially by the Rise of social media and instagram People are comparing themselves to Others subconsciously just by scrolling Through infinite pictures of happiness And lavish lifestyles when in reality Most people they only post positives That are going on in their lives my Solution is to not keep up with the Joneses and is to focus on a few things That you know will make you happy That have steps and meaning to them if That makes sense also you’re the average Of the five people you hang out with the Most make this a very tight and Strategic group i can count on one hand The number of Close friends that i have outside of my
Own family i have a million friends and Acquaintances but close friends are Where you need to be smart and strategic These people shouldn’t care if you drive A 98 corolla or a 2022 porsche 911 turbo They will like you for who and what you Are not for the material possessions That you have or the lifestyle you lead So you have to find friends that add Depth and quality to your life which Complement your lifestyle and not forces You to exceed it by keeping up with the Joneses right so it’s another thing About finding true friends they don’t Care who you are or what you drive as Mentioned earlier they are your friends And they like you for you the best part Is is when you guys grow together so if You both came from poverty or whatever And you both become successful that Relationship just becomes that much more Stronger so i hope you guys got value Out of this thank you for watching the Policy genius spot thank you for looking At all the links in the description Below i will be opening up whiteboard Uni uh finance university it’s going to Be my Private discord or private chat group I’ll be going on their live streams you Know once a week you can pick my brain For an hour along with a million other Benefits such as things that i’m buying Selling
Et cetera Keep an eye out for that it’s not Launched just yet if you haven’t watched My stock market for beginners video for 2022 i just released that a couple weeks Ago Please check that out if you’re Interested in learning about the stock Market And if you know someone that wants to Learn about it send them that link that Is an hour and a half free course that i Put online thank you so much and have a Prosperous day did you hear that sally Got a new kia italia ride oh i hear They’re great i’m actually bob and i are Going to go down to the kia dealership And check them out i heard they get Great reviews Boring [Music]