5 Reasons Why Most Americans are Broke.

in this video I'm going to describe to you why most Americans are broke and what you can do to change your situation because after all your situation is not permanent you can go from broke to wealthy to Rich to middle class to anywhere in between so watch to the end of this video and hopefully these tips and tricks will help you to change your situation wherever you are hi my name is Adrian and this is always talk money I like to talk money as it relates to Everyday Life with that being said let's get into the video thank you the first reason why most Americans are broke is what's going on next door yes keeping up with the Joneses as humans we are predisposed to comparisons right comparison is a thief of Joy but comparison is also the thief of wealth when you compare to what's going on in your neighbor's driveway in your neighbor's backyard or even on your neighbor's house you are predisposing yourself to wanting to achieve the same things or even better in some cases and that's not going to help you if your financial situation cannot match what your neighbor is doing and oftentimes your neighbor cannot do what they're doing either they're relying on other sources of income that are not long-term that are not repeatable and will get them in trouble in the long run so if you are looking at your neighbor and thinking you need to keep up with the cars they buy the size of their house their backyard pool or Garden or just the schools that their kids go to I'm telling you right now it's best to stay low it's best to save invest live below your means not try to compare and just give it time because you can and getting the nice things in life but there is an order to things you don't just go from crawling to Flying you crawl and then you walk and then you run and then you can fly obviously not literally because humans can't fly but the metaphor is you have to go through the stages of growth in life and that's no different to when it comes to wealth and finances the second reason why a lot of Americans are broke is they don't know how money Works you'd be surprised at how many people actually do not know how money Works yes you can add you can subtract and so on and so forth but they don't know how money Works in real terms for instance a lot of people don't know that you spend 40 percent more when you swipe a plastic versus paying cash because you have that emotional attachment to that money leaving your hands you do not have an emotional attachment when you make a purchase swiping also 401ks investing stocks bonds ETFs a lot of people look at that as something that rich people do or something that people on Wall Street and suits and ties do but at the end of the day you're hurting yourself you're keeping yourself broke if you don't try to learn investing you cannot earn your way to wealth not unless you're an athlete or an Entertainer or you have a super super high paying job and with the way how the real estate market is you cannot rely on your home to be your wealth building platform you have to learn investing I've seen older generations and I'm sure some people might have grandparents in their family that they've never invested they're like the market is going to go down it's gambling you're going to lose all of your money and so on and so forth and at the end of the day they just read the news too much the news is programmed to make people feel like the world is burning down around them because that's what gives good ratings as humans because of our survival instincts we are biased to negative emotions versus positive emotions because when we're living in the wilderness that negative emotion and pessimistic mindset is what caused us to survive modelings by ears or lions or other wild animals but now that we have Safety and Security in modern society we still have those instincts we are instinctively designed to believe the bad thing stocks and investing aren't bad yes you can lose your money but by and large if you know what to do you know what the right things are you can invest in your 401k you can buy stocks bonds ETFs you have to learn how money Works you're not going to earn 100 200k for the rest of your life and just save that money in the bank by the way if you want to learn ETFs and investing I have an ETF ebook down in the description down below and if you're liking this video so far please give a thumbs up and subscribe if you want more practical money tips in order to improve your financial situation the third reason why most Americans are broke and I touched on it in the last point and that's their mindset listen you are what you believe if you believe you're going to be broke if you believe you're going to be living paycheck to paycheck if you believe you're never going to build wealth then that is what's going to happen because in human psychology and I'm a big fan of evolutionary psychology I love to read those types of books but by and large in human psychology right when you believe something you are predisposed to that your actions kind of follow suit because in your brain your brain cannot tell what is real from what is fake let me explain if your brain perceives you are in danger by watching a movie you're gonna feel scared and have panic attacks just as if there was real danger in front of you because your brain is perceiving that movie screen as being just as dangerous as the real world and so when you have limiting beliefs around wealth and money when you believe that getting rich is bad then that's how you're going to move through life that's how your brain is going to perceive things you're not going to try hard you're not going to get the financial knowledge and education just the fact that you are watching this video right now there's 99.9 of people who do not watch videos like this because they believe that they can never build but I do not want you to be like one of those people I want you to persevere and build world and help your family and help your community so when people talk about wealth building is evil and so on and so forth who are the people that are really giving back look at Mark Cuban he has the Cost Plus drug website where you can get drugs generic drugs for cheap and that's because he's a billionaire he has the resources to do so so if you don't fix your mindset if you don't open up the possibility that you can build wealth is going to keep you broke the next reason why most Americans are broke is bad debt because there's debt that you can leverage to build wealth but then there's bad debt like Consumer Debt that's the Cardinals that's the credit card payments and that's even the upgrades on the house because you're trying to keep up with the Joneses right so you want to avoid debt at all costs millionaires the wealthy they play a different game but before you can play that game you have to play the game of eliminating Consumer Debt that is one of the biggest things that keeps Americans broke when you have Consumer Debt you are paying over the odds for interest rate even if you are investing in the market getting 10 to 12 returns you are paying 18 APR on that Cardinal you are paying five to six percent on your mortgage you are paying 25 on your credit cards you cannot out earn or out invest all of those debt payments mortgages aren't always bad debt you can always sell it you can refinance the property can appreciate but credit card debt car loan debt you know and even student loan debt right nowadays it's becoming one of the biggest factors of people preventing them from Building Wealth you have to get out of debt if you want to build wealth the final reason why a lot of Americans are broke these days and it's not all your fault right and inflation is a big drainer of wealth in these times and eventually we're gonna go go back down to regular inflation because inflation is necessary in a capitalistic Society but we aim to have two percent inflation year over year obviously you know in the last few years because of the pandemic and all of the Ripple effects from that we have had close to double-digit inflation and that's really keeping a lot of people broke because even if you got a raise even if you were able to increase your income somewhere somehow things are so much more expensive fuel is one of the biggest things right people buy fuel all the time I know from someone who comes from a trucking background and have a trucking business fuel cost me twenty thousand dollars more year over year from a previous year and that's a hard pill to swallow so I know that while people are out there spending recklessly trying to keep up with the Joneses getting into student loan debt card debt and so on and so forth inflation is a big factor for people not being able to get ahead I know it's not all our faults we are not the ones who cause any of this stuff to happen but this is why it's important that you do all of the things that's necessary and good for your financial well-being that's eliminating that live way below your means save and invest be prudent and then when something bad happens you have a buffer you have a safety net in order to ride that way until it gets better that's what the rich and the wealthy do the rich always get richer because in times of economic distress they're able to build and grow their assets because people are selling assets for cheap just to make ends meet and if you are keeping on doing that that's why you're going to remain broke and I don't want that for you guys well this is the end of the video I appreciate you guys for watching new videos every Monday and Thursday shout out to Mikko for editing this video leave a like subscribe check the links in the description down below and until then you guys have a great wonderful rest of your day peace [Music]

Channel: Always Talk Money

Views: 409

Keywords: why most american are broke, americans broke, american is broke, broke, americans are going broke at alarming rate, american crisis, usa crisis, us debt explained, us debt crisis 2023, us debt ceiling explained, the american crisis, economic collapse, rich vs broke, how to not be broke, strict budget, spending freeze, broke habits, i'm broke... what should i do?, how to stop being broke, dave ramsey how not to be broke, im always broke, why you're still broke

Id: HF-eWTHJJVY

Length: 9min 42sec (582 seconds)

Published: Thu Jun 29 2023