George Kamel - 5 Signs Someone Is Secretly Broke

Episode Date: January 24, 2025

📈 Are you on track with the Baby Steps? Get a Free Personalized Plan - https://ter.li/t8v6zq You may dream of what it’s like to be wealthy every time you see your neighbor’s Porsche or fishing boat, but you might actually be looking at a giant loan payment. In this episode, you’ll learn five signs someone is secretly broke and how to build true wealth.  Next Steps:  💵 Start your free budget today. Download the EveryDollar app!  📗 Order George Kamel’s new book, Breaking Free From Broke.  🎥 Watch my video How I Went From Broke to Millionaire in Under 10 Years.  Connect With Our Sponsors:  🔒 Get 20% off when you join DeleteMe.  💸 Learn more about opening a high-yield savings account with Laurel Road.  📱 Visit Tello for more details.  Explore More From Ramsey Network:  🎙️ The Ramsey Show    🍸 Smart Money Happy Hour  💸 The Ramsey Show Highlights  🧠 The Dr. John Delony Show  💡 The Rachel Cruze Show  🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership    Ramsey Solutions Privacy Policy  Learn more about your ad choices. Visit megaphone.fm/adchoices

Lots of people out there look wealthy, but they are low-key broke. Now, I hope you're not one of them. Or maybe you have a sneaking suspicion that your jack-leg neighbor Doug isn't actually doing as well as his range rover and speedboat and two Kawasaki Jet Ski Ultra LXs would lead you to believe. So today, we're going to cover the five tell-tale signs that someone is secretly broke. And instead of being fake rich, you're going to learn how to build serious wealth that lasts.

Now, before we get going, hit those like and subscribe buttons and passive-aggressively share this with all the dugs in your life. Just don't tell them, I told you to. lips are sealed. All right, the first sign that someone might be secretly broke, confusing income with wealth. Because at the end of the day, it doesn't matter how much money you make, it matters how much money you keep.

And if you don't believe me, just ask the 51% of people who earn more than $100,000, but still report living paycheck to paycheck. Think about it. If you have two people, and their names are Tom and Jerry, let's say. Tom makes $150K, his buddy Jerry makes $60K. Jerry is smart. He doesn't have debt. He spends less than he makes, and he invests 15% of his income,

into retirement. His buddy Tom, on the other hand, spends everything he makes on frying pans, dynamite, axes, and anvils, and he's not focused on saving or investing. He's more focused on total anarchy. And even though Tom made two and a half times more than Jerry, he's got nothing to show for it. Meanwhile, Jerry's investment of $9,000 a year grows over to $2 million 30 years later. So listen, a secretly broke person might be really proud of their big income and probably uses it as a big flex. And I assume they're hustling and working hard for it, but they're not actually focused on building wealth with that income. They're just trying to show off.

That's the difference. Sign number two that someone might be secretly broke, they spend big to look rich. I'm talking about people who say, girl, if it's not Lulu Lemon, I don't want it. Bro, my cyber truck was on back order for weeks. Totally sucked. We were going to go to Italy and Hawaii,

but now I'm thinking Monaco and Vail. I just can't decide. You got 2587. Not for long. I make bad financial decisions. Basically, if someone's obsessed over having the latest status symbols, there's a chance they are teetering on the edge of broke. Now, I'm not saying you should never buy expensive things

or do expensive things. I'm just saying there's a good chance that people who flaunt those things probably don't have a handle on what actually makes you wealthy, which is saving and investing and living on less than you make. But it's harder to show off your 401K balance in the parking lot. I think we can all agree on that. And let's talk about that neighbor, old Dougie Doug.

You remember, he drives a car that costs more than a salary. He just bought twin jet skis. And don't forget, his carbon fiber wallet is busting at the seams with 16 credit cards that he's trying to, arbitrage or some crap. Doug's problem is that he's using debt to fund a lifestyle he really can't afford, all to look and feel rich. But here's the reality. Doug doesn't actually own that Range Rover in his driveway. The bank does. What Doug does own is a car payment bigger than most people's mortgage. And he's not alone. One third of Americans said that the amount of debt they had increased in the last three months.

And get this, 37% of people owe more money on their credit cards than they have in retirement savings. That is insane. To the truth about looking and feeling real rich is that most of the most of the money. millionaires live in modest homes and they drive used cars. That's facts. And it all comes down to spending less than you earn and being intentional with your money. Plus, real wealthy people avoid lifestyle creep like their high school prom date and Hobby Lobby, even if their income goes up. And instead, what they do is they use that new margin as a tool to keep that wealth train rolling. They don't just inflate their lifestyle with every race. The next one goes deeper than just buying stuff. And this is about the mindset behind those purchases. So sign number three that someone

might be secretly broke, they lack financial discipline. Secretly broke people, want things now. Their spending is often driven by impulse, emotions, instant gratification, over-caffeination with their $7 lattes, rather than planning and budgeting. If they see something they like, they buy it. No second thoughts, no budget considerations. And more often than not, they're not using their own money. They're swiping a credit card, hoping they can pay it back later. They're quick to splurge on a little treat or the latest call of duty, but what they're not thinking about is that none of that money is going toward building a stable financial future. And discipline is not the sexiest concept out there, but it doesn't have to be hard.

You can do simple things like getting on a budget or automating your savings and investments. And to make it even easier, I will drop a link in the description to my favorite budgeting app that you can use for free. Okay, sign number four that someone might be secretly broke, they have money ADD. Secretly broke people often jump from one get-rich-quick scheme over to another. One month it's flipping houses, the next is day trading stocks, then it's throwing money into the latest crypto craze. And before you know it, they're trying to get you to invest in a Dolly Parton-themed fried pickle food truck called Gurkin 9 to 5. Not a bad idea, to be honest. Unless to all he sends me a cease and desist, I'm going to keep talking about it.

And this is just my opinion, but I think this one comes down to being immature, lazy, or apathetic. Which is one letter away from just being pathetic. But here's the deal. Your future is too important to put on the back burner, and you can do better. Now, we're about to get to the last sign that someone is secretly broke. But first, if you've been waiting for a better way to save your money, here's a sign for you. Online Bank, Laurel Road, offers a high-yield sales. savings account that offers top tier rates, and they're also a sponsor of today's episode.

Here's the good part. There's no minimum balance to get started. There's no monthly maintenance fees and your deposits are FDIC insured. And if you ever need help from real people, they've got a premium care team ready to help. The bad part, I can't think of anything. So go check them out today at laurel road.com slash George, or you can click the link in the description below. Another great move for your money is to keep more of it. And you can do that by switching your phone service to TELO. With TELO, you get the same great coverage as the big guys because they piggyback on Team Mobile's towers without the big name prices. And who doesn't love a good piggyback ride?

So stop paying more for the same. They've got plans as low as five bucks, and if you want the unlimited plan, it's just $25. It's easy to switch. There's no contracts. There's no sneaky fees, and you can even keep your same phone number. And you get $5 off the Unlimited Everything plan by going to tello.com slash George or by clicking the link in the description below.

What do you waiting for? Go save some mullah. All right. Sign number five, that someone might be secretly broke. They have no real financial plan. When you got no plans, you automatically become a waiter, waiting for that bonus or race, waiting for your powerball numbers to finally hit,

waiting for Rich Uncle Larry to kick the bucket, respectfully. And I wouldn't bank on that inheritance, because I heard Rich Uncle Larry was actually leaving his fortune to the Flat Earth Society, which, interestingly enough, has offices around the world, makes you think. That's the stupidest theory I've ever heard. So without a plan, it's all someday thinking

with no concrete steps or effort towards improving. So stop talking about one day and start talking about day one. That's what wealthy people do. Secretly broke people don't sit down to create a budget and they don't set financial goals. And without clear goals, they have no roadmap to get to where they want to go, which I'm assuming and hoping is to build wealth and have financial peace. And this isn't just about day-to-day spending. For example, when April 15th rolls around, secretly broke people are panicking over taxes like they had no idea it was coming again. And this trait is generational, because if they don't have a plan, it's a pretty good chance their kids probably won't have

of a plan and they'll go into crippling debt and they'll pass on their bad financial habits to the next generation and they're not going to teach their kids about saving, budgeting, or giving. And this creates a generational cycle of poor financial habits. And even if you have wealth, it's easy for the next generation to squander it if you don't teach them properly. Just ask the Vanderbilt's or Mike Tyson. I mean, the Vanderbilt's once America's richest family, blew through their entire fortune on mansions, parties, and luxury.

And Mike Tyson earned over 400 million and still went bankrupt because no one taught him how to manage money. And that's why it's crucial to have a plan and teach your kids if you have them. Because without a plan, you're secretly or not so secretly going to be broke. Now, all in all, you have the choice to not only be better with your money, but to also build wealth and change your family tree. And if that sounds better than pretending to be rich and being secretly broke instead, then here's what you need to do.

First, don't rely on TikTok for all of your money advice. You're better than that. Where you get your information matters. So make sure it's coming from a trustworthy source, not just a 60-second TikTok that justifies your own bad money habits. So if you want a good source, you want some great financial literacy that's modern and relevant to you, check out my book Breaking Free from Broke, the ultimate guide to more money and less stress. I wrote this because I want to see you change your life and win with money.

Remember, no one is coming to save you. You've got to take control. You've got to create the future you want. And if you're living secretly broke, a financial turnaround can actually happen pretty quick when you put your mind to it. In fact, I was able to go from secretly broke to a million dollar net worth in just 10 years. And guess what? It didn't take any life hacks or shortcuts, and I'm not going to gatekeep. In fact, I'm happy to share exactly what I did, and more importantly, how you can do it too.

So check out this next video or click the link in the description below. Thanks for watching. We'll see you next time.