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Good day subscribers thank you so much for joining me to date i am jeremy this is the financial education channel and today we’re doing part two of the three-part series five biggest myths and today we’re doing the biggest myths about personal finance yesterday i broke down a video on the five biggest myths of investing in the stock market and tomorrow i’m gonna do
The five biggest on opening a business and entrepreneurship those kinds of things but today we’re talking personal finance what are the five biggest myths i’m going to share this with you guys now number one by far the biggest myth about personal finance is people thinking that they make too little to be able to save money the fact that you don’t have enough income
To actually save money i can tell you guys in almost every scenario you can find ways to cut costs and lower your living expenses so you can actually put some money towards savings and it will eliminate stress off your shoulders even if you’re living a little a lifestyle a little less than what you were living before just the mere fact that you’re able to save
Money you’re actually able to have money in the bank you’re actually able to make that money into more money the short term sacrifice will make for a long term gains in a long term better life for yourself so it is it’s all beautiful if you can get a better job or start a business and be successful that way and get more income that would be ideal but at the same
Time even if you cannot do that you guys i’m telling you every single person can find ways to cut this cost and that cost you know maybe find ways to eat a little cheaper maybe don’t go out as often maybe don’t spend as much on this or that all these kinds of things guys live under your means it’s by far the biggest key to financial freedom in life it absolutely
Without question is the biggest key to financial freedom living under your means because at the end of the day you could be making a million dollars you could be making a million dollars a month but if your bills are a million dollars a month also what does it matter what does it matter you’re still living paycheck to paycheck even if you do make a million dollars
So regardless of how much money you have coming in you need to live under your means that way you have money to put towards savings so that’s by far the biggest myth that oh i only makes such amount of money so you know what i can’t put anything towards savings no cut some costs here and there you’ll be able to do it in short-term sacrifices make for long-term
Gains down the road guys number two biggest myth is that you need credit cards you absolutely do not need credit cards by no means you need credit cards that’s the bottom line guys you credit cards will be very beneficial when you’re trying to build credit when you’re young absolutely credit cards can help you if you say you’re very controlled i haven’t how you
Spend them and you just use them to get the perks of credit cards because credit cards do have perks if you spend such and such an amount of money but you’ve got to be very disciplined and you’ve got to pay those credit cards off on time which is why i don’t like credit cards because most people like big credit cards that are americans they’re very undisciplined
They don’t pay them off on time though the debt starts to add up and add up and add up and that’s how you get the average american only something like thirty thousand dollars in credit card debt something ridiculous that number is and i’m like how does that happen because people are very undisciplined because they go they don’t know how to control it and once that
That ball that snowball starts rolling then it gets bigger and bigger and then the interest starts adding up the interest so i preach don’t don’t get credit cards guys unless you’re trying to build credit or unless you’re a super disciplined person and you can use it for business expenses and you pay it off right away every time and you just get the perks of that
Credit card unless you’re in that one of those two categories guys you do not need credit cards by any means you do not need them that’s another number two biggest myth number three biggest myth is i need to pay somebody to manage my money okay i have savings left over now what do i do that money i need to give it to somebody else so they can manage that for me
Because i’m not smart enough to do that i can’t do that absolutely not guys if you’re the type of person maybe you just don’t want to do it because you think it’s too much work or whatnot that’s fine then pay someone to manage your money you know no different then you know if i didn’t have a wife to help me and whatnot maybe i might pay someone to clean my house
For me right i might do that that’s fair enough so maybe you’re the type person you don’t feel like managing your money so you just want to pay somebody finding deities you can do that but you do not need to pay somebody you every person is plenty smart out there to manage your own money and make your money into other money you just have to have a work ethic and
You have to have a disciplined plan and you have to execute on that plan if you can do that guys you can manage your money just fine by yourself you don’t need someone else to you know pass that money on to and then they make you a little 3% a year and then they take up for set in half of what they made you away from that guys and then you you wind up barely making
Anything in the long run so it’s like everything in life you’ve got to be able to put in the work you’ve got to have a plan you got execute on that plane if you can do that guys you don’t need anybody managing your money you can do it just find yourself and you can probably do it way better than they’ll do it honestly that’s the truth guys because no one cares
About your money as much as you care about your money bottom line number four i need to buy a house when i’m young that’s absolutely a myth in my opinion the reason being is when you’re young and what i’m speaking young i mean under 30 you know in your twenties you moved out of your parents maybe you’re living an apartment or renting a house or not you do not need
A buy a house when you’re young the reason being is sometimes young people we don’t know what the hell we’re gonna do in the future we don’t know what path we’re gonna lead on we don’t know who we’re gonna meet we don’t know where we want to live in the future maybe we’re moving up the corporate rings maybe you know you don’t know if you’re gonna be transferred
To another place last thing you want to do is go buy a house at 24 25 years old and the next thing you know you don’t even want to live in that state anymore you want to go live somewhere else or you get promoted to a new position and then you go move to that other state and you end up taking a ten twenty thirty thousand dollar loss on that house which i’ve seen
So many people do because they plan a house and they’re little young so they might not know how to negotiate as well they overpay for that house a bit the housing market doesn’t go anywhere in the short term over that year they own it and then they have to dump it because they have to get rid of it because they need that money to funnel into the new house which
Is in some other state or whatnot and they have to they don’t want to be keep paying the mortgage on that house so then they have to sell it for a poor price so that’s why absolutely it’s a myth in my opinion that you have to buy a house when you’re young if you absolutely are 100 percent certain that this is where i want to live for the future and you know that
When you’re young and then bravo you can do that but the fact is 90 95 percent of people you know that are 25 26 years old you don’t know sometimes you know i’ve moved from state to another state and then i realized that stated he really liked it you know what i was ready to move together they moved it ready again and now i feel like i’m in a place that you know
Will raise the family in and this is where we’ll stay actually but i’m 27 years old now when i was 24 years old i didn’t know that when i was 22 years old i didn’t know that so i’m glad i didn’t buy a house during that time because i might have just taken a huge loss guys so when you’re young well let things kind of play out renting is fine you know yeah you throw
Away some money but you know what you might throw away a lot less money than if you buy a house and go move somewhere else really soon number 5 i needed buy a used car because it will save me a lot of money versus buying a new car this is another huge myth guys that i don’t know how it’s perpetrated out there but oh you’re gonna save so much money by yet buying a
Used car you’re not you’re really not guys i bought several used cars in my time and i realized that you know what it’s not damn cheaper i believe in this whole process oh you know what buy a used car it’s gonna be so much cheaper absolutely false reason being is when you buy a used car let’s say you buy a used car it’s got sixty thousand miles on it’s five years
Old sixty thousand miles on it right not super old the mileage isn’t super high yeah you get that for a much cheaper price than what it would have been if it was new but at the same time you’re getting a car then who knows what the hell happened to that that car in those sixty thousand miles is five years old it’s got five years of wear and tear on everything on
That car pretty much and what you’re gonna have to do is you’re gonna have to then buy a warranty for that car if you buy a new car the warranties included it’s like three years most places do three years 36,000 miles that’s the three-year warranty that comes with buying a new car when you buy a used car you do not get a warranty you have to buy the warranty and
The warranty is usually three thousand to five thousand more dollars for a three-year warranty on that car on top of whatever the car cost and then you add that on your like you know what this isn’t quite as cheap as i thought oh and then things are gonna go wrong with that car probably that aren’t even on the warranty just because older cars got wear and tear that
The warranty is not going to cover and you never gonna have to bring that out of pocket then when you actually go to get rid of that car in let’s say in the next five years say you take a five year get rid of that there course 10 years old at that point it’s probably got hundred thousand miles on it guys who you know how many people really want a ten year old car
That’s got a hundred thousand piles it’s gonna be worth very little at that point so for those reasons a used car doesn’t mean that it’s way cheaper than a new car maybe on paper it does maybe that new car is twenty four thousand dollars versus a five year old car which is sixteen thousand dollars a fifteen thousand dollars guys but you know ahead at the end of
The day there’s a lot of cost when you get up that warranty and sure you can say okay you know what i won’t get the warranty i won’t get the warranty i won’t have it with three or five year warranty oh then good luck you know if something major goes wrong with that car in that amount of time guys it’s not gonna be pretty for you you’re gonna have to come out with
That cost out of pocket or take out you know if you don’t say you don’t have savings and you have to take out some kind of loan at a rediculous rate or something to get that car fixed so guys that’s the number five biggest myth in my opinion that buying a used car is somehow so much cheaper than buying the new car it’s really not true at the end of the day i hope
These five myths help you guys immensely today i would love to hear from you guys if you think these are all true and accurate and whatnot i would love to hear your opinion on other myths about personal finance that maybe i didn’t mention on this video i would love to hear from you guys hit that thumbs up button if you enjoyed this video today and if you have not
Subscribed you may want to talk about personal finance on the channel just like we did today i talk about entrepreneurship i’m an entrepreneur i give entrepreneur tips and we talk about the stock market more than anything on this channel and how to be a successful investor thank you for watching guys and have a great day
Transcribed from video
Top 5 Biggest Myths about Personal Finance! By Financial Education
