George Kamel - Millionaire Reacts to Money Advice from World Leaders

Episode Date: August 9, 2024

💵 Start your free budget today. Download the EveryDollar app!    When politicians decide to give their two cents on personal finance, things can get messy fast. So in this video, I’ll separate the good advice from the bad as we look at what politicians and world leaders have to say about money.   Next Steps  📗 Order George Kamel’s new book, Breaking Free From Broke.  💸 Watch Millionaire Reacts To: Viral “Boy Math” Trend      Offers From Today's Sponsors  This episode is sponsored by Laurel Road. 💸 Open a high-yield savings account and make your savings work harder for you. Check it out here: https://www.laurelroad.com/george  This episode is also sponsored by DeleteMe. 🔒 Remove your personal information from the web at https://joindeleteme.com/george and use code GEORGE for 20% off. 🙌       Listen to 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

Politicians have been known to say some pretty dumb stuff. They get hot, I got a lot of it. I got hairy legs. And when they decide to dip their polarizing toes into the water of personal finance, things can get ugly fast. But every now and then, I hear some good, common sense money talk coming from the world stage. So, who should you listen to? Well, today we'll separate the good advice from the bad as we look at some money advice from politicians and world leaders. But before we do, hit those like and subscribe buttons and share this with all of your friends on both sides of the aisle, because making smart decisions with your money is a good thing,

whether you're voting for a donkey, an elephant, or a brainworm. What does that even mean? Okay, first up, let's look at some recent comments Vice President Kamala Harris made while talking about student loans. As a parent, then, as a homeowner, if you have some equity in your home, you can say to your child, you know, don't take out the loan. I'll take out some of the equity.

No, no, no, no, no. to help you pay for tuition so that you don't graduate with extraordinary student loan debt. And so that when you graduate, you can do your dream job and not worry about those hundreds of thousands of debt. And you can go on and prosper. No! No! No! As someone whose last name is similar to her first name, I do not. I rebuke this entirely.

What she's saying here is basically, hey, adults, parents, don't put on your oxygen mask first. go backwards into debt, put your home at risk with a home equity loan or a HELOC in order to send your kid to college debt-free. Helks have a variable interest rate, which means these loans can increase in any given month. And if you miss a payment or you default on the HELOC, the bank can take your house. You could also pay transaction fees, minimal withdrawal fees, inactivity fees, or early termination fees, in addition to having required balances. And if history and data tells us anything, parents are already broke. And so to add more insult to injuries that your kid can go,

to their precious famous school without debt or with less debt is not a good plan. And using your house like an ATM, using your house like a credit card, moves you in the wrong direction financially. Do I want your kid to go to college debt free? Absolutely. But this is not the way to do it. Avoid this at all costs. And please put your own oxygen mask on first.

Okay, this next video is from personal finance YouTuber. I mean, Canadian Prime Minister Justin Trudeau. Let's take a look at what's happening over in Cold Mexico. Let's talk about credit scores. Wait, don't scroll, this is important. A credit score is basically a rating that banks and financial institutions assigned to you to determine how responsible you are with money, like do you pay your bills on time? So when it comes time for you to ask for a loan, like applying for a mortgage so you can buy

your first home, they'll check your credit score. Having a good credit score means they can offer you a better mortgage, which will give you more choice when buying a home more options to choose from because the bank trusts you to pay it back. For most young people, the biggest and most important payment you make is on rent. And if you've been paying that on time for years, that should count towards your credit score. I think it should work to your advantage. Soon, it's going to. We're going to change the rules of the game so you can report your rent payments towards your credit score so you can get a better mortgage so you can get a place of your own sooner. How sweet. Thank you. Thank you, Justin.

Oh, by the way, I was being sarcastic. First of all, it kind of feels like you're encroaching on my territory here. Okay, explaining personal finance direct-to-camera on YouTube. Little gauche. Okay, and here's the deal. Have you looked at Canada's personal finances, Justin? Because we get these calls on the Ramsey show. Canada's not doing all right.

I don't feel so good. It's impossible to afford anything in Canada, and I don't think the credit score is the issue here. In fact, the credit score is just an I-love debt score. You got to get into debt to build your credit so that you have more access to debt. If that was the solution to our problems, we'd all be living our best life, but unfortunately, people can't afford anything.

And here's why. They have debt payments up to their eyeballs because of this stupid game that we've been required to play. So here's the good news. It's possible to live a great life without a credit score. And yes, you can even buy a house without a credit score like I did through a process called Manual Underwriting, and I will link to a video below where I explain the process. Okay, next up, Ronald Reagan.

I know. Deep cut. Let's take a look at what the Gipper had to say about balancing the budget when he made an appearance on The Tonight Show with Johnny Carson. And for those of you young folks watching, that was a TV show that aired on television back in the day. I think the answer to curing inflation is a balanced budget. Now, how do you do that?

I mean, it's not, how do you balance the budget? Well, balancing the budget is like protecting your virtue. You don't spend more than you take in, right? It's like protecting your virtue. You have to learn to say no. That's wisdom right there. That is some old-school, timeless wisdom. Now, he's talking about macro economics here, but this 100% applies to personal finance and to the government stuff too.

When you have a financial goal you're working towards, sometimes you have to say no to other things in order to reach that goal. That's called delayed gratification. It's called being an adult instead of a toddler and saying, I want it now. I want it now. And I love how Johnny Carson basically just summed up my financial worldview. He said, you don't spend more than you take in, right? And everyone laughs. We're all having a good time.

And look at us in America today. They've got no savings. Nobody's on a budget. We're spending out of control, debt up to our eyeballs, and the answer is right here. It's so simple, but it's so hard. Live on less than you make. So while this was all meant in jest,

I do wish America would take a good look in the mirror and take it to heart. Because if we followed this timeless advice, we would be $0 in debt as individuals and as a nation. God bless. All right, now let's get to some weird stuff. You've earned it. In this next video, Vanilla Ice Claims,

there's a way you can legally avoid paying property taxes, and he says Donald Trump has a... actually done this. And in case you're wondering, yes, I meant that vanilla ice. Let's take a look. You talked about how there's advantages of actually burying someone in your backyard. Yeah. And you said something about it when Trump buried his ex-wife in his backyard. Yes. It got rid of all the liens. So you actually will ever never owe property tax on the entire property forever, forever. You will also- In every state? Yes. In the United States of America. So if I put a dead body in my backyard, anyone, right?

Any dead body? Your family. Only my family. Got to be your family. Okay, so I kill somebody. All right. What do I don't? That was a creepy laugh.

So that you have the tie to them. And people used to do this back in the day. You have to understand it's only been, funeral homes is a business. Okay? If you don't understand how this works, they make millions of dollars. They don't pay property tax on funeral. Ask yourself this.

Does any cemetery in the United States? States of America pay property tax. Wow. I think I've seen enough. And the creepy laughter every time they talk about murder and burying bodies, disturbing. I think someone should check out Vanilla Ice's backyard, just saying. Does anyone else have the hippo-jeepees? Now, my team and I were skeptical of this, so we did a little digging and we found a video from an actual, you know, professional tax lawyer that provides a little more nuance into this whole thing. Let's check that out. I'm a tax lawyer. Let's talk about it. Every state is different. Here in Tennessee, if you have a single burial on your property, that does not make it a family cemetery, which would be exempt

from taxation. However, if you have a family cemetery on your property more than one person, then yes, part of your property could be exempt from tax. But there is a procedure to go through. You have to go through the comptroller's office and you have to fill out paperwork and then, yes, you wouldn't pay taxes on that portion of the property. check with your local state statutes and code sections to find out if that's true in your state. So Mr. Property purchaser, if you can find another grave on that property, maybe you can get that exemption. But check your codes and your statutes and maybe consult with an attorney in your jurisdiction. That's good advice when it comes to anything this slightly illegal.

So bottom line here, this isn't really a tax loophole. Most people are going to want to take advantage of and the laws are going to vary state by state. So unless you want to take over your entire backyard to make it a graveyard and your kids can't play in there, or maybe they can, and that would just be creepy, I would not suggest using this as a wealth hack. So Mr. Ice, or should I call you by your given name, Robert Matthew Van Winkle, check your facts, bro. And if there's a problem, maybe don't solve it because it might involve burying me mom peepop in your flower bed just to avoid paying property taxes. I do not recommend this strategy. All right, before we move on to the next one, let's stop, collaborate, and listen. I want to tell you about a mildly brand new invention,

a place where your money can earn some really good interest with no family graveyards required. And that is a high-yield savings account like the one offered by online bank Laurel Road, a sponsor of today's video. Right now, your account balance earns 5.15% APY, plus a ton of other great perks come along with that. No minimum balance to open an account,

FDIC insured deposits, and no whack maintenance fees. And if you need help, Laurel Rhodes Premium Care Team takes great care of you with real people instead of boss. So make your money work harder than vanilla ice by rolling in your 5.0 down the internet superhighway to this website, Laurelroad.com slash George, or just click the link in the description. The other sponsor of today's video is delete me. They're like the good cops patrolling the underbelly of that internet super highway. Delete me fines and removes your info from hundreds of data broker sites who are going to sell it for a profit,

and then they send you an easy-to-read report showing you exactly what they did. It'll save you tons of time, and it will reduce your risk of online scams and fraud. Yes, please. And because I know these guys and they like me and I like you, they're offering my adoring YouTube fans 20% off any of their plans. Just go to joindeletme.com slash George. Or you can always click the link in the description below. That's joinedeletme.com slash George.

Yo, VIP, let's kick it. Back to some money-related advice from former president, Barack Obama. If you are really confident about your financial situation, you probably are not going to be wearing an eight-pound chain around your neck. because you know, oh, I got banked. I don't have to show you how much I got. I feel good. That'll preach.

Literally, thanks, Obama. Thanks, Obama. And before you accuse me of getting political and picking sides, I don't recommend getting your money advice from politicians on either side of the aisle. But occasionally, they might squeeze out a solid nugget of advice. In general, not usually their area of expertise. But I love what Obama's saying here. He's saying, hey, if you're confident in your own financial plan,

you're not trying to flex, you're not trying to live beyond your means. Who gives a rip? What kind of car you drive, the clothes you wear? It's about your actual net worth, the wealth you're building for you and your family. And so other people don't get a vote and not caring about what other people think is a superpower in today's world. And I suggest you attempt to harness it. All that to say, when it comes to your money, look to trusted financial experts, not politicians. Now, if there's a clip we missed that should have been on this list, please share it in the comments so we can see it and maybe respond in a future video.

And remember that even though America's financial house is not an order, you can take control of your money and make good decisions that lead to wealth. And watching this channel is a great place to start. I commend you. So like, subscribe, and share this video with all of your friends who want a money plan that comes from a financial expert with zero presidential ambitions. Seriously, it's just too much paperwork. All the executive orders, the pardoning the turkeys. Can you imagine the hand cramps? No thanks, Tom Hanks.

I'll stick to YouTube, me and Trudeau. And if you want to see me react to more crazy financial advice, be sure to check out this video next. I'll also link below in the description. Thanks for watching. We'll see you next time.