George Kamel - 7 Spending Traps Keeping You Broke

Episode Date: September 1, 2023

We all have at least one friend who’s all “B.S.” Yeah, I said it. . . They’re “Broke Spenders”. Today I’m here to save you from a conflict-induced panic attack by personally volunteering to call out the traps these B.S.-ers are falling for on behalf of self-aware, common sense people everywhere. Links: Budgeting For Beginners EveryDollar Budget Deal: I love a good deal, when you sign up using this link, I’ll hook you up with a 14-day free trial and $15 off your first year of the premium version of EveryDollar. Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

We all have at least one friend who's all BS. Yeah, I said it, broke spender. You know the one. You invite them to a highly rated Yelp Eatery with $2 signs, and they immediately counter with a $3 sign spot because of the vibes. I'm going to hang by the bar. Put out the vibe. But hey, you like a good aesthetic, right?

So you say yes, and you show up in your nice jeans, the clean ones, and they show up looking like they're auditioning for a succession spinoff. Ooh, feisty. I mean, just covered in designer beige from their head to that cropped ankle hem. And you stare in awe, as they casually order a $47 per glass vintage red. And that's when it happens. They look up at you and say,

So anyway, I don't know how my boss expects me to make ends meet on this salary with everything going on in the world. Have they even heard of inflation, interest rates, antibiotic-resistant bacteria threatening our very lives? Can we get a reality check over here? That's a broke spender. And today I'm here to save you

from a conflict-induced panic attack by personally volunteering to call out the traps these BSers are calling for on behalf of self-aware, common sense people everywhere. All I'm asking a return for this public service is that you like and subscribe, and then share this video with all your rich friends who think they're broke, because their spending is out of control. I do require payment up front though, so come on, clickety click.

I'm waiting! Dear broke people, the reason most of you don't feel rich isn't because you don't make enough money. It's because you spend everything you make on stuff you don't need and debt payments you just had to have. You see, the more you make, the more you spend. That's called lifestyle creep. And that's when you start to complain, which makes you sound pretty tone-deaf to basically everyone except Elon and Bezos. Oops, I'm rich again.

Oh, I can't hear you. No, they can't hold the noise. Don't believe me? Let's do some amateur sleuthing to figure out if you're actually broke or if you're just letting these seven common spending traps hold all of your money hostage. Number one, new cars. Is your entire personality based on your 2023 Matt Blue Bronco?

Well, that's a bummer, because buying your personality ain't cheap. The average car payment in America just hit 700. $133 a month. That's a huge chunk of take-home pay. I've said it once and I'll say it again. Cars are depreciating assets. They may not even deserve to be called assets because of how quickly they lose their value.

In fact, the average new car loses 60% of its value in the first five years. That is insane. So why are you going broke paying interest on something plummeting in value? Instead, pay cash for an older used car that will transport you

out of broke fill. Number two, eating out. Some of y'all out here eating all your money, and then wondering where it went. The bum stole my wallet. Check your large intestine, bro. Listen, I know you love the convenience and the sugar rush for that $6. Grande no-whip, half-calf, white chocolate mocha with a single pump made with coconut milk

and the lunch out with coworkers because brown bagging feels lame. And that door-dash dinner because you're too tired to cook. And then throwing a brunch or two every month and your paycheck basically just went down the tube, probably the small intestine at this point. So if you can break this habit by learning to grocery shop on a budget, eat more meals at home, you will feel like a time. lottery winner the next time that check hits your bank account. Excellent!

Number three, subscriptions. Now, be honest, can you even name all the subscriptions you pay for? Off the top of your head? Don't hurt yourself. Most Americans underestimate how much they spend on subscriptions by at least $100. And the average person has 12 subscriptions and pays $219 monthly. So if you feel broke, try reviewing all of your subscription charges. Maybe you cut them all out.

Or maybe you just limit yourself to one streaming service per month. Maybe you still mooch off your old roommate's subscriptions without them knowing. Hey, secrets safe here. All right, then, keep your secrets. But whatever you're paying for, it's time to trim the fat. Because it's physically impossible to watch Outlander, the Lion King, and Star Trek Voyager all at the same time. You only got two eyes, or four in my case.

Number four, hobbies. Look, hobbies are great. I wish I had some. This is my hobby, okay? But hobbies can get expensive. Have you ever actually made a business deal on the golf course? Let's go golfing! And how many more axe throwing bars do we need in this country?

Enough. Instead of coping by throwing sharp heavy objects while drinking, just go to therapy. Okay, it's cheaper and it's better for you. Now, I don't care if your hobby's skydiving, sports betting, or pickleballing. You know that those lessons, the gear, the gas money, and the ice cream cone to celebrate your first ever hole in one, are all bleeding your bank account dry. So if you constantly complain about being broke, maybe it's time to track how much your hobbies and entertainment is costing you. And potentially find a cheaper option.

Or take a few seasons off, like Michael Jordan. Stop it. Get some help. Number five. and vacations. I know it feels like everyone is off on the amouty coast except for you, but if it makes you feel better, maybe they're trolling and just really good at Photoshop. But I'm sort of an expert at Photoshop, so it turned out fine in the end. Now I'll be blunt. If you have debt payments weighing you down and you've only got 20 bucks in the console of your Bronco for emergencies, you don't have any business going on vacation.

And I'll prove it to you. Today, the average three-day vacation will cost a solo traveler about $1,400. Now, if I stole $1,400 from your bank account right now, would you feel panicked and for cash? Yes. So quit stealing from yourself to temporarily escape the financial dumpster fire you've been living in. Put the fire out and get out of debt as fast as you can so that you can actually enjoy your life with some peace. Or get really good at Photoshop on your next vacation and make your friends think you own a supri-gat. Hmm? Number six, luxury and designer items. I'll admit it. You can look pretty fly for a broke guy. Cash money. I'm gonna make it rain. But the markup on these luxury items is downright offensive and embarrassing. Now once again, I would like to

point out that buying your personality comes at a price. Wearing name brands doesn't make you more valuable as a person. Okay, if the motive is to flex on the people around you, you need better people around you. And if you just really love the style, no, you don't. It's not the checkerboard design on the Louie that you love. It's the status. And it's okay to admit that, and it's also okay to decide you are too broke to be buying designer clothing. Who are you wearing tonight? Number seven, investments. Okay, I know your intentions here are good. I'm a big fan of investing.

But if you're investing while also constantly adding to your debt like it's an award-winning sourdough starter, you are doing yourself a disservice. Because interest never sleeps. It's always got its eyes on you. And the interest on your debt is likely close to or higher than the ROI you're getting on those investments. So do not think that you can invest your way out of debt.

Pay off your debt first, don't invest, then invest once you're out of debt. And don't even get me started on NFD. in crypto. Okay, if you're smart enough to watch this channel, I'm gonna guess that you know by now that crypto is just Mary Kay for young men and NFTs are just time shares for Gen Ziers. We just bought three weeks of a time share. So before you dive into investing, pay off all of your consumer debt except for your mortgage. And make sure that you get an emergency fund of three to six months of expenses in the bank

so that you don't have to cash out your investments if you get in a financial bind. So if you're feeling called out in your BS, here's the big takeaway. Jets setting to a Biza decked out in the latest Louis Vuitton is not going to give you that rich feeling you crave. You want to know what will? Actually being rich instead of trying to look rich. That means living debt-free with no monthly payments. It means having a stacked emergency fund that always has your back. It means setting a goal to increase your net worth, not your status. That's what I did, and it's how I went from broke to millionaire in 10 years. It's that simple and it's that hard. Because not caring what other people think

is a superpower in today's culture. So harness it and you will begin to build true wealth. And I believe all these things I mentioned are 100% possible for you. But, but you, but But only if you stop blaming everything on everyone else for your brokenness and start living on less than you make and start building for the future instead of paying for the past. Will it require some discipline in the present? Sure, all good things do. But you can do it. Go listen to a Jocko podcast and drink some Jocko Malk if you need to get pumped up.

Okay, I can't do that for you. He can. He's strong. That's freaking awesome. I have a photo with Jocko. You want to see it? That's us. So here's a few tactical steps to get you headed in the right direction. First things first, start tracking your spending with a zero.

based budget. And if you want to know more about this, check out my budgeting for beginners video. If you need a quick crash course on this, I will link it below. A budget is going to show you where your money is actually going, and that can be scary at first. But once you see it, you can't unsee it, and it just might convince you to start spending less through slashing expenses, cutting subscriptions, eating out less, and it might motivate you to go make more money by selling stuff or picking up some side hustles to increase your income. That will allow you to pay off debt faster, save up that emergency fund faster, and invest more in the long run. If you're intentional, you can build an incredible future with the money you're already making. It's not always an income

problem, but it's always a you problem. It's not an issue. It's an issue. You're talking to me? So act like you're the problem and act like you're the solution, and then you will start winning with money. So stop complaining to your friends about being broke. It gets old after a while, okay? You want to really impress your friends. Do something about it. Be about it. Now let me know in the comments below which of these broke spender habits you struggle with the most let's be vulnerable okay let's brine brown in the comments together it'd be a good time maybe we can even share some tips and tricks to help us all grow together and win with money and pass this on to the other broke spenders in your own life maybe they'll see the like and ditch the dolce for some true wealth thanks for

watching we'll see you next time