Facts About Money Everyone Should Know

foreign show So today we're going to look at 10 fascinating facts about money that might just change the way you think about it I love seeing facts because I'm like okay this is what's actually happening out in the world and again it helps me with my perspective sometimes when I can get down and out to be like okay this is what was really happening so facts are your friends as my friend Dr John baloney says so let's dive in are you ready let's start with the big bucks so did you know that the overwhelmingly majority of millionaires in the U.S 79 did not receive any inheritance at all from their parents or other family members yeah eight out of ten and while only 21 received some inheritance and only three percent received an inheritance of a million dollars or more and those are net worth millionaires so this is what people own minus what they owe equals a million dollars or greater a lot of them are self-made you guys like it is so empowering to know that you can still go out and win today and a lot of these people again it's not like big flashy things that they're doing with their money they're investing in their 401K they're paying off their house like they're doing really smart things with their money and they're winning so it should just give you some hope that you can do that too all right number two similarly eight out of ten millionaires come from families at or below middle income level and only two percent of millionaires surveyed said they came from an upper income family which again gives hope that like yeah regardless of how you grew up yes some people start further along the path but it shows like you can do this no matter where you came from what you're doing now if you implement good money habits smart money habits it's realistic to the Future versus just the presence that you can win and if you have not picked up my dad Dave Ramsey's book baby steps millionaires make sure to because we talk about the survey so much in that book and he writes about you know not only people's stories but the plan for you to walk down to become a baby steps millionaire because it is possible all right we have been talking about millionaires but what about billionaires so out of 8 billion people on the planet there are only 3 311 billionaires I don't know why it's kind of shocking I kind of would have thought there was more I don't know why 3 000 doesn't seem like a ton but granted we're talking billionaires which is a lot of millions like it's just a lot of money that's a lot of money so the U.S has the most billionaires of any country at 975 and the next closest is China with around 400. all right up next something a little bit more common nearly 7 and 10 reward credit card holders sit on unused cashback points or miles so you guys the credit card companies are banking on you not cashing in and getting your rewards and they're banking on you racking up credit card debt and paying interest and making them a lot of money so this is one place that people kind of get so mad because they're like what you say no credit cards and listen do people have a credit card and pay it off every month and use their Southwest points or whatever their miles like yeah some people do but this is proof that a lot of people don't so you end up this is true statistically that you spend more on a credit card because in the back your head you're thinking oh I'm going to get points and rewards and this just proves that not everyone uses those so you're spending more money to do nothing and again paying interest if you're not paying off your bill so be aware of that okay here's another fun one about credit cards as of 2022 Q4 the average credit card interest rate is at 20.4 percent so that's literally the highest it's ever been so just imagine putting a thousand dollar iPhone on your credit card and that means you will pay 200 in interest to do to do that so it is it is bizarre how much those interest rates have gone up you guys and what happens again if you don't pay your bill in full you're paying interests and people that are struggling when it comes to inflation they're struggling with their budgets or their jobs all of it they rely on credit cards to be the thing that's their safety net and I want you to rely on your money that's why I don't want you to be tempted with credit cards have a debit card get an emergency fund in place and all of us will help you avoid 20.4 percent in interest all right before I tell you about the next fact I want to tell you about one of our sponsors Christian Healthcare Ministries so I know we're all looking for ways to save especially on health care costs so do yourself a favor and check out Christian Healthcare Ministries it's biblically based Health cost sharing that could keep your budget under control so learn more today at chministries.org budget now next up the average American spends 276 dollars a month on impulse buys alone so that comes out to three thousand three hundred and twelve dollars a year and 198 720 in a lifetime almost two hundred thousand dollars in just impulse buying so again not all of that is bad things are going to come up that you forget about but this idea that you're just gonna buy on impulse on a whim whenever you feel like it ends up costing you money so much money so you just want to be aware of number one why are you spending it what's going on because here's what's crazy two out of three impulse buys happen when you're in bed on your phone and I'm guilty of that too you're scrolling you see something so just wait 24 hours I sometimes add the car and not purchase and wait like two or three days and if I still want it then I think about it and think okay do I have the money is it in the budget all those questions but sometimes it's just that impulse and you don't even want it and then 24 48 hours later you you don't want it anymore so just add the cart and wait 24 hours and see if you still want it okay here's one about a bigger purchase in life your car so a brand new car loses somewhere between nine and eleven percent the moment you drive it off the lot bump onto the road and with a thirty thousand dollar new car that's three thousand dollars gone just like that before you even get home now after one year a new car is worth about twenty percent less than what you bought it after five years a new car will lose around 60 of its value so here's the deal with cars I never want you to lease a car I don't want you to go and take out a huge car loan because you are you are paying interest on something you're going into debt for something that is going down in value okay so it's just not a good Financial picture in general now if you have a million dollar net worth or more then you mathematically can take the hit of that three thousand dollars when we drive it off the lot but if you don't have that I mean get a reliable used car you guys there are so many great cars out there that someone else took that hit and you could get a two three four five year old car and it's still a great car and it will save you so much money remember your car is to get you from point A to point B that's what it's there for and sadly in our world today it's become our identity it's become so much more than that but when you look at it on a really tactical standpoint that will help you save so much money take the emotion out and just say okay if I didn't care what people thought about this car then you're probably not going to buy a crazy expensive car or go take a car loan on a nice car and it's just like okay I can save up and pay cash for a reliable used car which is a great plan all right another interesting fact about your car is that the average new car payment is around 700 and the average used car payment is around 515 dollars and again this is what's crazy is you are paying that per month which could free up 700 in your budget and you if you have two car payments for two brand new cars which a lot of people do it's fourteen hundred dollars like that's a whole lot of money per month that's just going out to car payments and again with interest and an asset that's going down in value it's just an absolute mess so instead of that invest it let your money work for you versus paying interest it's a way to think about it all right this one this one's a little scary this fact but one in four working Americans have zero dollars in retirement savings not a fun thing to think about but here's the deal retirement is going to happen right like if you live a great life and I think the life expectancy in America I saw was like 79 years old 80 years old so when you get to that point like you're not going to want to work right like everyone most people it's like okay when I get to retirement age I want to be able to retire so you want to be able to plan for the future and I get it if you're not a saver and you're like you have to put money away that you could be using now it is hard like when we fund you know Roth IRAs in our 401K all of that I have to tell myself future Rachel's gonna be so happy that present Rachel is doing this but it is hard just to put money away and know that you're not going to see it for decades but when you become older and that retirement age starts creeping in you can have peace so once you add a debts have a fully funded emergency fund and then start funding 15 of your income into retirement all right the last interesting fact which kind of goes back to the last one we were talking about according to the Social Security Administration Social Security benefits are only meant to replace about 40 of your income when you're not working which means if you solely rely on Social Security you're going to cut back your lifestyle by 60 percent oh I said please do not rely on the governments to be your financial planner do not rely on the government to be the thing that's going to help you in retirement because some people would even say social security is not even going to be there when we when I get to retirement age again you could argue that but the point is don't rely on them you take control of your money you say hey I'm going to get out of debt get an emergency fund in place and start funding my own retirement for your future self and that will give you such peace all right I know we covered a lot of these facts but again I just want you to understand like what is going on in the world we hear some lies around you know wealthy people or debt whatever it is and when you get the facts around you it does help you kind of steer what do I need to be doing or I don't want to be that or I want to be that so what are the steps I need to take to avoid or to help me get to this financial goal so the biggest part is to understand that you're the one that has control of your money you're the one that has control of your spending you're the one that has control of your income and you have the ability to wake up and make decisions about your money that's either going to further you or push you back financially because ultimately I want you to have Financial Peace I want you to have this confidence with your money to be able to say man I can sleep good at night I can you know do the things that I enjoy and that I want to do I want to change my family tree I want to give generously and all of that is so so key when you understand that you have the ability to make money decisions that can help you and you guys can do it you can do it all right thank you so much for watching today and make sure to share this video with a friend who you think will find it a little fun with all these interesting money facts and remember to take control of your money and create a life you love [Music]

Channel: Rachel Cruze

Views: 28,933

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, Facts About Money Everyone Should Know

Id: 7O_3xpnUo6c

Length: 11min 23sec (683 seconds)

Published: Fri Mar 31 2023