George Kamel - The $2 Million Mistake You Don’t Know You’re Making

Starting point is 00:00:05 People give me all kinds of reasons why they don't want to pay off their debt. But hanging on to it could be costing you a lot of money. How much exactly? Try $2 million. Now, as usual, your boy is sourced. I've got the data to back this up, and today I'll show you how you can become a multimillionaire simply by trading your debt payment for wealth building instead. And, of course, I'll address the objections from all the haters out there who are clutching their debt like a lobooboo.

Starting point is 00:00:31 Those things are freaky-looking. It makes Furbies look cute. Bring back Furbies. Bring back Furbies. Labibos can't even talk, can they? How is technology resorted back to not talking? You've got to get rid of those Furbies. They've turned Farrell.

Starting point is 00:00:47 Recently, we just did the first ever audience survey for this YouTube channel. And thank you so much sincerely to all of those who took it. And I found some interesting data in here that is also maddening. A lot of you have debt. A third of you have credit card debt. 20% of you have car loans and student loans. and yet eight in ten are investing. And it's the number one thing you want to hear about on this channel.

Starting point is 00:01:09 What is the last thing on the list of things you want to hear about? Debt payoff. And here's the problem. You're not that concerned about the debt part, and you should be. Like I mentioned, you're essentially leaving $2 million on the table by keeping your debt around instead of paying your debt off ASAP. I'm going to show you the connection between wealth building and debt payoff here in just a second. So it's time to put our nerd glasses on and get to work.

Starting point is 00:01:31 Much better. This is a whole new level of nerd. Overall, U.S. consumers send an average of $1,237 each month to their various creditors. Breathe that in. $1,200 a month in debt payments for the average American. So let's see what this looks like. Now, I'm using the Ramsey Investment calculator, and if you want to plug in your own numbers for free, I'll drop a link to this in the description below.

Starting point is 00:01:53 Go check it out. So for this example, we'll say you're 33 years old, and you have a payment of $1,237 every month in minimum debt payments, and you've been living this way your whole adult life and have nothing saved for retirement, which is sadly pretty common. So you're 33, and let's say you plan to retire at 62. Perfect. And what if, go with me here, for two short years, not 20 years,

Starting point is 00:02:15 you gotten tense about this debt and you used the debt snowball method to aggressively knock out all this debt in just 18 months. And then six months after that, you get an emergency fund saved up real fast, three to six months of expenses. So if you're tracking with me at home, you were 33 years old. old. Two years later, you're now 35 years old and completely debt-free with savings in the bank. So that means you could funnel that $1,237 that was going straight to lenders into investments instead. So we're going to plug that into our monthly contribution. You have zero in retirement. One, two, three, seven monthly. And for our annual rate of return, we're going to go with 10%,

Starting point is 00:02:51 which is the average we've seen in the U.S. stock market over the last several decades. Don't at me. I will not respond. Google it. Let's see what pops up. $2,35,7333. That means if you got rid of your debt and you consistently invest that payment for the rest of your life, you would have over $2 million by the age of 62. And that's how your debt is costing you $2 million. No hyperbole, no conjecture, no cap. The numbers don't lie.

Starting point is 00:03:22 And you might even have more if you're younger with more time on your side, or if you have even bigger debt payments that you trade for wealth building instead. And a lot of you watching this, you wish you were 35. with only mild back pain for no good reason. But remember, most people don't retire at 62. Typically, retirement age is 67. That means you could be 40 right now. And if you retired at 67, those numbers would come out exactly the same.

Starting point is 00:03:43 Any 27-year period with that investment amount would equal over $2 million. What I love about this is how little you actually have to put in to become a multimillionaire. So if you add up all of those contributions over 27 years, you've only put in $400,000. That's 20% of this nest egg. 80% is all compound growth, over 1.6 million. It's something you did nothing for, except for sit back, relax, and enjoy the wealth building. But right now, because you have debt, you're too busy paying interest to earn it. So I hope you can see why I'm out here like your dad. I'm not mad, I'm just disappointed. Because you have debt, you're not concerned about it,

Starting point is 00:04:19 and yet you're wondering why it's so difficult to build wealth. And think about this, that $1,200 bucks, it's going to pass through your hands every month through your paychecks. The question is, Do you want it to be used to put a Capital One logo on a skyscraper or to grow generational wealth for you and your family? You get to choose. And the choice is easy for me. But I hear all kinds of reasons why people don't want to pay off their debt. Objection number one, it's too hard and takes too long. I get it.

Starting point is 00:04:45 Paying off debt is hard. And I know because I've been there. When I was in debt, I stopped eating out. I sold stuff. I flipped stuff. I side hustled. I drove for Uber. I budgeted.

Starting point is 00:04:54 Hardcore. And you're not hardcore unless you budget hardcore. I ate lean cuisines for months when they were on sale $5 for $10. My intestines aren't doing well, in case you're wondering. And here's the thing. It took me 18 months to pay off $40,000 in consumer debt between my student loans and my credit cards. And I would do it all over again. And this was all while being a W-2 employee.

Starting point is 00:05:16 I didn't own a laundromat. I didn't buy a vending machine or ATMs. I didn't drop ship on Amazon. I just, you know, went to work every day and showed up and paychecks showed up along with it. Now, objection number two, I don't want to use my safety. to pay off debt. These are the people who say things like, well, I could pay off the debt, but I don't want to see that money leave my account. I like seeing that big number in there. Makes me feel good. That's like someone saying, I could get rid of the giant Grizzly rating my kitchen, but I feel better having the bear spray in the can rather than spraying it at the bear. I like the heavy feeling of the can when the mace is in it. Here's the reality. You're never going to build wealth as long as you carry debt. And you'll build back up your savings real quick once you free up those debt payments. So if your goal is to build wealth, which you told me it is in the survey, you need to pull the trigger and spray the bear. Spray the bear, spray the bear.

Starting point is 00:06:03 If I don't get to hit the desk, what's the point of this channel? Why live? Oh, don't be so dramatic. Okay, objection number three is one that even the smartest people fall for. But before we get to that, I want to tell you about something that poses a threat to all of us, whether you've built any wealth or not. And that's your sensitive data, just hanging out on the internet. Yeah, did you know, just because you delete an account on the internet,

Starting point is 00:06:23 it doesn't mean your info is also gone. Every box and field you've ever put your information on is still alive and well on a data broker site nowhere near you. But the good news is it doesn't have to stay there. Our friends at Delete Me can help remove your personal data from hundreds of these data broker sites. I use them and you can too. Delete Me saves you tons of tedious work trying to find and remove the data on your own. Plus they'll send you an easy-to-read report so you know exactly what they did. And right now, you can protect your data and get 20% off by going to join DeleteMe.com slash George

Starting point is 00:06:53 or just use the link in the description. Okay, the final objection people cling to that keeps them paying down debt instead of building for their future? Mathematically, I'm winning. Now, this is a YouTube finance bro favorite. You'll hear them say things like, well, the interest rate on my debt is so low, it's better to keep it because I can make a bigger return in the market. It's called arbitrage, bro. Google it. I don't want to see another puppy.

Starting point is 00:07:16 Stop wagging its tail because I heard the word arbitrage. And I see you, Caleb Hammer. You're not finessing the system, bro. You're not an asset, man. You're just a... You know what? I'm not going to do it. Because Nehemiah's watching. Alalooia's watching.

Starting point is 00:07:28 The homeschool community at large is watching. And I'm not going to use that kind of language in this house. No. My mother taught me better. And your mom did too. Shout out. Shout out to your mom. If I single-handedly bring your mom jokes back,

Starting point is 00:07:41 I will have done the Lord's work. Says who, your mom? Now, sure, you could crunch the numbers and show me hypothetically what kind of spread you could make on your debt. But paying off debt is way more than just a math problem. It's going to free you up mentally, emotionally, on top of freeing up your income.

Starting point is 00:07:57 Whether you have a 0% or 29% interest rate, just pay it off. And if you miss the debt, you can always go back and get more. Trust me, the lenders will immediately start sending you more offers as soon as you pay off that debt. We miss you. We love you. Come home. It's creepy and I don't like it and they have old man moth breath. And their hands are grimy. Not like sticky, clammy like when you're like nervous. I'm talking grimy.

Starting point is 00:08:21 Like they've been in multiple gas station bathrooms without. washing their hands. They weren't even doing their business. They were just touching stuff. Just touch this urinal. They like the cake, the forbidden cake, they call it. People call it the forbidden cake. We don't know. They say it tastes like lemon, lemon pound cake. You know, this is getting completely out of hand. Plus, living like this is just more stressful. Your debt is living rent-free in your head while you're paying for the past instead of building for the future. Okay. Now, hopefully, we've cleared the objections. What do you do next? Well, you can take control of your money and get out of debt and you don't have to do it alone. Budgeting is the cornerstone of the

Starting point is 00:08:56 debt snowball method that I mentioned earlier, and there's an app that I use that can help you out. It's called Every Dollar. It's a free download. It's super easy to use. It does all the math for you, and it will coach you through this process. So if you want to check it out, click the link in the description, or go to Everydollar.com slash George and start your free trial today. And if you want to learn more about the method that millions have used to pay off debt, including yours truly, check out this next video right here where I break it down. Click to watch it or use the link in the description. Don't forget. to hit those like and subscribe buttons and share this video with someone who maybe has a bear problem.

Starting point is 00:09:27 I don't know. You figure it out. Thanks for watching. We'll see you next time. Holy crap. I just saw into another dimension.

George Kamel - The $2 Million Mistake You Don’t Know You’re Making

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