George Kamel - 4 Signs You’re Doing Well With Money

Starting point is 00:00:08 Oh, hey, didn't see you there. I was just on Instagram looking at pictures of other people's Ferraris and vacation homes in Bora Bora. On a totally unrelated note, do you ever feel like you're behind financially? Like, everyone else seems to have more money than you? He gets it. Well, you're not the only one. According to a recent study, a lot of Gen Z and millennials feel this way. But are you really behind or do you just think you are?

Starting point is 00:00:30 And how do you even know if you're doing well financially? In today's video, you'll find out why you're probably better off than you think, and we'll cover four specific signs you're actually doing well with money. But before we get started, hit those like, subscribe, and share buttons while I buy this Ferrari. Hoodie, because we all know.

Starting point is 00:00:47 Telltale sign of Ferrari owners? Hoodie. Like the people who wear the Harvard? Sweeters? None of them went to Harvard. Think that sweatshirt off. According to a study by Qualtrix, nearly half of Gen Z and 59% of millennials

Starting point is 00:01:01 say they feel behind financially. But here's what's odd. A lot of those people surveyed, had an above average amount of money in savings. And another twist. According to one report, 51% of people earning more than $100,000 annually said they lived paycheck to paycheck,

Starting point is 00:01:17 while making six figures. Seems a little suss. So what's really going on here? Why are these people feeling behind, even if by all measures, they're actually doing better than most? Well, financial experts are calling this money dysmorphia.

Starting point is 00:01:32 This is when a person has a feeling of insecurity around their financial situation, even when they're doing pretty well. Now, I think the term dysmorphia seems a little dramatic, but it makes sense when you think about it. We're talking about having a distorted view of your finances that does not reflect reality. So if you suffer from money dysmorphia,

Starting point is 00:01:48 it could be hurting your wallet. According to the same study we mentioned earlier, quote, 95% of Americans with money dysmorphia say it negatively impacts their finances. Of those, 40% say money dysmorphia has held them back from building savings or led them to overspend and take on more debt. Another 30% say it's held them back from saving for a home and paying down debt.

Starting point is 00:02:09 So ironically, thinking you're behind might actually be holding you back. So what's the antidote? How do we ditch our distorted money mirror and figure out if we're actually doing well with money? We'll get to that in a moment. But first, let's talk about what's really behind this phenomenon. Mark Zuckerberg. That's right, Mark Zuckerberg, the man who made me believe aliens are real. Because he is one.

Starting point is 00:02:30 And I was human. I am human. Still. But seriously, social media is a big factor here. That's what I'm trying to say. Thanks to Facebook and Instagram and TikTok, we're constantly comparing our lives to other people's highlight reels. And instead of just keeping up with the Joneses in our neighborhood, we're now trying to keep up with the Uber wealthy Digital Joneses from all over the world.

Starting point is 00:02:48 And the digital Joneses have a yacht, and they're friends with one of the property brothers. And one of those guys is betrothed to indie icon Zoe Day Chanel. I don't care. So as the old saying goes, we buy things we don't need with money we don't have to impress people we don't like. Anyway, all this keeping up with the Digital Joneses

Starting point is 00:03:04 is not only making us broke, it's also making us unhappy. Because no matter how much money we have, there's always someone who's making more. And we can see the picks from the Bora Bora vacation home right there in our feed while we're waiting in line for a baconator at Wendy's. Almost the same life. Eat spicy goodness? Like a boughs. And all that can make us feel like we're missing out on some grandiose lifestyle that only more money can buy. What happens then?

Starting point is 00:03:28 Well, you feel behind and discouraged. So what do you do? You spend a little more to get the large fry and the frosty. And soon after that comes the indigestion, shame, and regret. And that's just one way social media is making us feel financially behind. On top of all the yacht reels and Ferrari picks, you've got all these people on TikTok talking about how good your grandparents had it back in the day and how it's basically impossible for you to get ahead

Starting point is 00:03:49 because of home prices and wages and inflation and interest rates and the rising cost of a ticket to Magic Kingdom. We are in a silent depression. You remember this guy, Freddie. Plus, a lot of these doom and gloomers are just using their TikTok pity parties to get views and sell some. kind of financial product. But it's easy to get sucked into this woes me mindset. And if you're not careful, you can start to believe that you'll never get ahead and there's nothing you can do

Starting point is 00:04:12 about it. And this is where money dysmorphia can really start to hurt you financially. Because when you feel like you can't control your financial situation, you're not very likely to do anything to change it. So don't listen to these Debbie Downers, or in this case, Freddie Frowners. They don't dictate your financial future. You're in control of that. Which brings us back to the original question. How do you know if you're actually doing well with money? Well, here are four signs you're probably better off than you think. Number one, you live below your means. This just means you're spending less than you make each month,

Starting point is 00:04:42 and you're not having to use debt to pay your bills or make basic purchases. And when you're doing this, you've got some financial margins you can give, save, invest, and even splurge every now and then on some pickle-flavored cotton candy. That's disgusting. And the best way to make sure you're living below your means is by making a zero-based budget every month. More on that later. The second sign, you're better off than you think. you have an emergency fund.

Starting point is 00:05:05 According to our research, 33% of Americans say they have no savings at all, like none. So if you've got an emergency fund, you're doing okay, even better than okay. So how much do you need?

Starting point is 00:05:16 Well, I recommend having three to six months of expenses saved for emergencies. That way, you can rest easy knowing you'll be able to handle just about any unexpected expense that might arise. Like replacing your car door

Starting point is 00:05:27 after a bear ripped it off trying to get the pickle-flavored cotton candy you left in the front seat. Rookie mistake. Okay, the third sign you're doing pretty well financially is you don't rely on credit cards. Almost 40% of Americans rely on credit cards to cover their basic monthly needs. And according to the Federal Reserve, 26% of American adults with at least one credit card said they carry a balance most or all

Starting point is 00:05:49 of the time, which is not good. No, it is not. Because paying interest at those ridiculously high rates is a bigger waste of money than that pickle-flavored cotton candy. I have no regrets. But seriously, when you have to send huge chunks of your income out the door every month, to make debt payments, it's going to be pretty hard to make progress with your money, especially with an average APR of over 22% on credit cards. And while you're keeping money out of lender's hands, let's talk about how to keep your personal info out of scammer, spammers, and big data brokers' hands. And for that, I use and recommend Delete Me.

Starting point is 00:06:20 They scour the internet to find and remove your info from hundreds of data broker websites, and they send you an easy-to-read report. And for the last 13 years, Delete Me has been the number one personal data removal service out there. So help protect yourself from the risks of identity theft and online scams with DeleteMe. And right now, you can get 20% off their plans by going to join Deleteme.com slash George. That's Join Deleteme.com slash George or click the link in the description. And another way you know you're doing financially well is if you're earning interest instead of paying it. And one of my favorite ways to earn interest is through a high-yield savings account.

Starting point is 00:06:56 I mean, you're basically making money while you sleep with these things. And that's why I love what Online Bank Laurel Road has to offer. only will your account balance earn 5% APY right now, but they've got a ton of other great perks, too. No minimum balance, no monthly maintenance fees, and your deposits are FDIC insured. So it's time your money started making money. Go to laurel.com slash george or click the link in the description to get started. That's laurel road.com slash george. Okay, let's move on to the last one on the list.

Starting point is 00:07:24 You're probably better off than you think if your net worth is growing over time. Your net worth is a basic math equation. It's what you own minus what you owe. So you take the total value of your assets, things like your house, cars, investments, cash, minus your liabilities, things like credit card debt, student loans, your mortgage, and the remaining $4.25 you owe afterpay because you buy now pay later to another five-pound bag of Sower Patch Kids in a moment of weakness. In your defense, they were the watermelon ones, which are fire. Dang, they're all just so good.

Starting point is 00:07:57 The resulting number is your net worth, assets minus liabilities. you own minus what you owe. And that means your net worth is not just the stuff you have, because you could have a million bucks in cash and investments, but if you also have a million bucks tied up in debt, you're not a millionaire, you're broke. So your net worth is the most accurate scoreboard to assess how you're doing financially, way better than your stupid credit score. And if you're doing the right things with money, living below your means, avoiding debt, saving, investing, your net worth will naturally go up over time. So if that's the case for you, you are on the right track, my friend. So what if you're doing all of those things,

Starting point is 00:08:31 and you still feel behind. Well, I'm not technically a doctor, but it sounds like a classic case of money dysmorphia. And hey, at least you're aware that your perceptions about your money situation don't actually reflect reality. So there's that. So what can you do to stop feeling so behind?

Starting point is 00:08:45 It comes down to one word. Math. Now, before you zone out and click that Graham-Steffen video in your sidebar, hear me out. No! No! I'm not talking about hard math that requires one of those TI calculators that has more buttons than a build-of-air workshop.

Starting point is 00:08:59 What I'm talking about is much more. basic. In fact, it's pretty much just writing down numbers. Instead of worrying about your money and obsessing over how to make more or get rich, try this. Put some real numbers down on paper and find out what you actually need to be able to pay your bills, to give, to save, and to invest. That will give you a much more accurate picture of your finances. And the way to do this, the way I do this, is with a zero-based budget, because it tells you where every single dollar is going. And doing a budget every month will help keep you on top of your finances and on the right track. And let me tell you, to make this easy on you, check out my favorite budgeting app called

Starting point is 00:09:33 Every Dollar. I've linked it below in the description, and you can get started for free. Now, when you budget, instead of just looking in the freaky financial funhouse money mirror, you'll be looking in a regular money mirror, the boring flat kind that gives you an accurate reflection of your finances. And while we're at it, consider unfollowing these accounts that are making you feel less than, and maybe even get off social media for a little while. That's probably a good move for all of us, especially this guy. Remember, your happiness should not depend on how. how much money you have or how rich you look to other people. Chasing status always leads to disappointment.

Starting point is 00:10:05 And you shouldn't be thinking about money all the time. Ask yourself what's really important to you in life and then make sure that your lifestyle and your actions reflect that. And here's something interesting. A recent study asked the question, what does financial happiness mean to you? And the answers people gave were kind of surprising because they weren't things we associate

Starting point is 00:10:22 with the lifestyles of the rich and the famous. So check out this video to see the top four things people said would make them financially happy. I'll also link it below in the description. Thanks for watching. We'll see you next time.

George Kamel - 4 Signs You’re Doing Well With Money

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