George Kamel - Millionaire Reacts To Bad Financial Takes

Episode Date: January 3, 2025

💵 Start your free budget today. Download the EveryDollar app!  Sometimes the internet nails it, and other times . . . well, I have some thoughts. In this episode, I react to the latest money content on social media and share my key takeaways.  Next Steps:  🎥 Watch my video Money Expert Reacts to Broke TikTokers . . . Again.  Connect With Our Sponsors:  🔒 Get 20% off when you join DeleteMe.  💸 Learn more about opening a high-yield savings account with Laurel Road.  📱 Get $5 off Tello's Unlimited Plan and enjoy great nationwide coverage for only $20 at Tello.  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  💼 The Ken Coleman Show  📈 EntreLeadership    Ramsey Solutions Privacy Policy  Learn more about your ad choices. Visit megaphone.fm/adchoices

Well, it's that time again. You guys wanted more of me reacting to your clips. Now, before we get to it, click those like and subscribe button, share this with someone you know who needs this information. Who actually needs this information? Probably nobody. But hey, we're here. Let's be entertained. Let's learn something while we're at it.

Let's get to it. Did you know that nearly 50% of parents go into debt to take their kids to Disney? Yes, you heard that way. Disney adults, this is on you. Now, this is according to a study by lending. And this is actually up 50% from just two years ago, where parents feel obligated to take their kids to Disney. And because they feel obligated, they go into debt instead of saving up in cash. Now, the magic of Disney comes with a hefty price tag.

And the average parents spend $6,000 on their Disney trip. Things like flights, park tickets, food, hotels, all of these things are really expensive when you go to Disney. But by going into debt, you're putting your family at a huge financial risk. So instead of going into debt, save up in cash, but there are also really great ways that you can travel hack so that you can reduce those costs significantly when you go. Yes, going to Disney with your family can be magical, but don't let it turn into a financial nightmare by going into debt. Just be a little more disciplined and save a little longer. So here's the deal. People that are going into debt for these trips because they feel obligated, because you feel like this is, I guess, a right of passage for your child to experience Disney.

you got to just drop the baggage. You're not a bad parent if you don't take your kid to Disney. However, I think you are going to hurt your own financial future, hurt your own marriage, hurt your ability to raise great kids if you're in crippling debt while you do it. And this is part of the problem. It's not just a Disney thing. Now, Disney is obviously one of those poster children

for the trips we got to take with their kids while they're young, but the truth is your two-year-old's not going to remember. Now, you will remember the trip you took, but you'll also remember the debt that you paid for month after month after month, long after you were back home. So please do what he said. Save up over a long period of time and pay cash.

And if you can't afford it, don't go. Find something else to do. Okay, my kid likes to play with cardboard. We don't need to go see the Disney princess right now. We can hold on that. Let's see who's next. This is how many days you're working. Okay.

Just to pay taxes. Days worked for taxes. And this is how many days you work to pay for things that you need to live on. One, two, three, four, five, five and a half months. What? Months out of the year, you're working for free. I don't even understand. Can we just do some basic math together?

Okay. I'm processing this with you. Five. Point five divided by 12. that is a 46% tax rate, which nobody is paying. So I don't buy this idea that five and a half months of your work is just going to taxes. Okay, when you look at the actual tax brackets, your marginal tax rate, your effective tax rate, most people's effective tax rate, is going to end up somewhere in the 10 to 12% range, maybe 15 or 20 if you make a lot of money.

So that is not five and a half months. That's more like two months, two divided by 12. 16%. That's on the high end. Really, it's going to be for most Americans, closer to one and a half months of your work as going to taxes, which I get it. I'm not a fan of taxes, but it, you know, pays for things like

maintaining the roads, schools, police, firefighters, you name it. There are some benefits here that we do enjoy. So there you go. I know I debunked it. I know that wasn't fun, and that's why this video will get a fraction of the views that this viral video got, because it's more fun to, I guess,

lie and fearmonger for clicks and view. Not! But let's keep going. Maybe we'll have more fun as time goes on. Show me how long it takes you to order at a counter and I will show you your bank account. Why? Was that a counter like one does? A coffee shop.

The lady in front of you takes four centuries to order a coffee and a muffin. What I realize very quickly is, you know, if you want to get something done, you give it to a busy person. That's why they say you should take somebody dinner before you hire them or see how quickly they make decisions. Because people could take forever to order when they stand in line, one, are really comfortable inconvenience in something. which means they have limited self-awareness, maybe borderline narcissism. And then simultaneously, they're not very efficient at the things that don't really matter. And so if we know we are here for a finite amount of time, why spend so much time on that? Uh, okay, there's a lot to unpack here.

I guess she's saying indecisive people are narcissists? Indecisive people are poor and decisive people are rich. I don't know, I've met a lot of decisive gamblers that are broke. So I don't know that I track with this one. Let's see what the comments have to say. J91 said, dumb. Not true at all. Go lay down, woman.

Okay, wouldn't go that far. Uzi DXB said, rubbish I've ever heard. Not sure that's a full sentence, but I get the sentiment. Linda said, this is absurd. No way I want to work for someone like her. You don't have to. All right, I guess it makes me feel better that I'm not the crazy one because no one else agrees with her.

Maybe there's more context as there is with a 30-second clip out of a full conversation. I'm sure she had a lot of good things to say. I just don't understand where this one was going. And for those reasons, I'm out. It's one of the worst ideas I've ever seen. I'm out. All right, let's see what this is all about. Spin a key, and it's either pointing to Japan or save money. So I guess this person really wants to go to Japan.

And they collabed with an account called Japan Explores. I'm figuring out what's going on here. This is a sponsored post trying to encourage tourism to Japan. and to that I say, Kanichua. Enjoy your trip, my friends. But please budget for it. Pay cash.

Don't put it on the car. Don't use your freaking sky miles. Just save up and pay for your trip. And if you can't afford it, just, I don't know, go to Sarkoo, Japan in the mall and pretend that you're in Japan. It's not the same.

But to be fair, that video is pretty funny. But you know, it's not funny, paying too much for your phone service. And that's why I recommend Tello, one of the sponsors of today's video. They've got phone plans anywhere from $5 a month all the way up to a measly $25 a month for the unlimited everything plan.

There's no contracts, there's no sneaky fees, and you can upgrade, downgrade, change plans whenever you want. They've also got cheap international roaming, so maybe you can actually go on that trip to Japan and save money while you're at it. But before you book your flight to Tokyo, go to tello.com slash George, and you'll get an extra five bucks off

their unlimited data plan for your first month of service. Or just click the link below. And by the way, have you seen the interest on most of the savings accounts out there right now? It's pathetic. And that's why I always recommend a high-yield savings account, like the one offered by Laurel Road, another sponsor of today's video. With Laurel Road, you can earn some S-tier interest, and competitive rates aren't the only reason to check them out.

There's also no minimum balance required to open an account, your deposits are FDIC insured, and there's no hidden sneaky fees like monthly maintenance fees for no reason. You work hard for your money, so let your money start working hard for you. Learn more by going to Laurelroad.com slash George, or just click the link in the description below. Okay, back to the videos. We're going to charge? How about a million dollars? That's probably too much. Zero dollars? We're not doing that again. Let's make a debt so it can be anywhere between 20 and 200 grand. That feels about right. Does it come with any guarantees? What? Like you'll definitely get a job because of this. No? Well, should we limit the number of graduates in areas where there aren't that many jobs? God no. What?

Should we incentivize people to go into fields where there aren't enough workers? You are overthinking this. But it costs a lot and takes years to get these degrees. And you're getting people to make these big decisions when they're like 18. What do you study? Philosophy. And social sciences. Makes sense. Not philosophy.

Comments. Oh, Chris Kohler. I just love this guy. And again, partially because of the accent and partially because his videos are spot on. And it shines a light on how problematic this whole student loan crisis really is. So Chris, if you're watching, we got to clap, bro. Okay, have your people. call my people. Here's the deal. Student loans, the education system, you can call it a scam,

call it what you will, but here's the deal. The people on the other end, the students, the parents that are making these decisions need to think twice about signing the dotted line for 150 grand in student loans for a philosophy degree or really any degree that may or may not pan out, that may or may not have marketplace value. Not to mention, you may or may not actually graduate with a degree and you still have the debt to show for it. That's some of the darkest situations I encounter. So please only pursue higher education if it is the only way and it's the best way, meaning you've done your research, make sure you can find the affordable option. Maybe it's a community school, a trade school, a in-state university, get the scholarships, get the grants,

save up, put it on pause until you can cash flow at whatever you have to do to avoid student loan debt. Capish! Hi-hi-hi-ha-captain. Next up. Boomer is looking at their bank account, $947,000. Gen X looking, love the reber reference, 43 grand in the bank. That's still pretty good. Millennials, $2 and $7. Gen Z, negative 59 grand. Okay, I really like, I don't know what that last song is, but it hits. So this is, I guess, making fun of the fact that older generations have more money, and as we get to the younger generations, they are wildly broke. Okay, it's a lot of generalizing here. I've met a lot of

broke boomers and a lot of Gen Zers that are crushing them, running circles around them. So I call this one mildly entertaining. And remember, you don't have to fit into the stereotype of your generation. I mean, look at me. I'm a millennial. I got more than $2 in my bank account. And I also have the cantankerous demeanor of a boomer who's just spotted some neighbor kids on his lawn. Do you know how hard I worked on that Bermuda?

And here you are, just stepping all over it on my fescue. No, thank you. Youth. So to this video, I say, yes, ha, ha, give it a like, and then don't be like any of these people. And by the way, I've never met a boomer that just has $947,000 sitting in a checking account. That would be unwise at best. I'm being told we have one more and a bonus one. And why am I pointing to the ear without the earpiece?

Beats me. Could have done this. I'll never make it in show business. Is it really cheaper to live at an all-inclusive resort than it is to live in a city in America? Let's find out. So the super average house in Boulder, Colorado is $800,000 with an... How is that an average house? 46-41.

Here's our property tax estimate about $339 a month, and you're probably going to need a car because you live in America, so let's drive a CX-5. Now if you're in a couple, you probably need two cars, but let's just say you have one. Your SUV payment is going to be $5009. Why do we need a payment? You're going to have a house and car insurance. So here's another $206 a month. So we have a mortgage payment, property tax, car payment, insurance on your house and your car, you're probably H-O-A fees, sewer and water, lawn care, trash services, electricity and power, gas, got to eat, cell phone, Wi-Fi, gym member, and if you want to go out, you have to spend money.

I'm probably forgetting something, but your grand total to live in Boulder, Colorado is. So you'll need $7,700 after tax income to live in Boulder, Colorado, plus health insurance premiums. So is it actually cheaper to live at an all-inclusive resort? This spot in Punta Cana looks like this. All right. It is Ray on the Beach. All your drinks are included. The property has multiple bars and restaurants, including a buffet.

Is she being paid by this resort in Puttacana? are a spa on site. Housekeeping is included, yoga classes in a gym, and your Wi-Fi. And the cost for two adults to stay at this resort is $6,100. Okay. Got it. So, okay, there's a lot to unpack here. Number one, the average person shouldn't be buying an $800,000 house with a $4,600

mortgage payment, okay? Unless you're making a healthy six-figure income, that is insane. You will be broke. Next up, the assumption that you will be broke. Next up, the assumption that you have to have a car payment, you've got to drive a brand new Mazda CX5, also an insane assumption. And that's just the start of these problems. The average house, this is a super average house, 3,200 square feet in Boulder, Colorado, one of the most expensive places to live in the country. And again, leasing a car, having a car payment, a giant waste of money.

Instead, just save up, pay cash, have no payment. Third, not everyone has HOA fees, and most that do pay less than 50 bucks a month, according to the U.S. Census Bureau. But what do they know? What are they? Just a bunch of fact-checking idiots over there, I guess. Fourth, you don't have to spend $300 a month on drinks and entertainment. So what she's doing here is trying to appeal to the pain point people are feeling of high prices and high cost of living by saying you should live on a resort, never build any equity, and never call a place your own.

Instead, just, I guess, be on vacation for the rest of your life. That won't be, that won't get old anytime soon. That's a terrible idea. So this presentation, it's a little bit rigged to make it seem worse. and I think still spending $6,100 a month to live, you could still do better than that. So I'm not a fan of videos like this because they make people feel hopeless

and imply that you're screwed. There's nothing you can do about it. But hopefully if you're watching this channel, you know that is not the case. And to prove it to you, let me read some of these comments. That's my favorite. I watched the videos, but really, I'm headed straight to the comment section. K marshmallow said, this is stupid.

Code Drosso said stupid comparison. After the mortgage ends, you own the house. The house is quite big. bigger than the room and the resort. Good point. You need to have a car and its insurance no matter where you stay. All in all, this comparison is, tell me you are from the U.S. without telling me you are from the U.S. Don't know what that means. I guess he is not from the U.S. because I think he was told. The mind of a poor, said Mike home. Okay. I think I'm done with the comment section. You can only take so much before you feel the vomit start to rise in the old esophagus.

This is displeasing. We have a bonus one, I'm being told. Is this true? Exactly. Okay. All right. This is not final. I found some wild glizzy content. Oh! What is happening? Glizzies.

Why have I had to, I'm watching this way too many times. It's addictive, disturbing all at once, and I think that describes the internet. So apparently he's actually taking a bite of a cat tail plant. I'm being told by the caption. Best comment, the Forbidden Corn Dog. Big fan of that. Me want bite. want plant corn dog delight. Again, the comments do not disappoint. Okay, I'm going to stop

watching this on loop. That's about all I can handle in one sitting. Thanks to everyone who's been sending me these videos. And as always, if you come across any good money-related reels or TikToks while you're scrolling yourself to sleep at 2 a.m., go ahead and share it with me, and maybe I'll include it in one of these videos, like this one, where I may or may not have lost my cool with a guy in a tight shirt giving terrible advice. Keep watching or click the link in the description to check it out. Thanks for watching. We'll see you next time.