Personlig ekonomi som skolan aldrig lärde ut
5:39 for bankruptcy can show us
5:40 production means nothing when you have a
5:42 problem with consumption
6:03 a rat race an endless self-defeating or
6:06 pointless pursuit
6:08 sometimes the rat race is conflated with
6:10 working a nine-to-five job it’s a
6:12 comparison often used by certain
6:14 individuals to guilt you into buying
6:15 programs and books for them but this
6:17 seems extremely unfair
6:19 mostly because it aims to villainize a
6:21 job and excludes the fact that there are
6:22 those who either love or are perfectly
6:24 fine with their jobs or have other
6:26 aspirations aside from their nine to
6:28 five
6:28 a real rat race is one that is living on
6:31 a financial edge
6:32 being one paycheck away from broke
6:34 constantly a feeling as though the
6:36 moment money enters your life
6:38 it immediately disappears and the more
6:40 responsibilities you have
6:41 the more dangerous this relationship
6:43 becomes the loss of a job
6:45 an unexpected health accident or any
6:47 unexpected circumstance for that matter
6:49 can throw your entire financial position
6:51 into turmoil and consider the mental
6:53 consequences of living on this financial
6:56 edge
6:56 your job no longer becomes an option it
6:58 becomes a necessity in order to keep
7:00 funding your lifestyle
7:02 or to keep paying off debt to quote
7:04 tyler durden from fight club
7:06 the things you own end up only you
7:11 what’s the silver lining it doesn’t have
7:13 to continue like that
7:15 the first stepping stone in personal
7:17 finance will have you drawing an
7:19 awareness to your relationship with
7:20 money
7:21 this is often done by journaling your
7:23 monthly expenses
7:24 categorized as housing transportation
7:26 food utilities entertainment and so on
7:29 it’s about
7:30 understanding yourself as a consumer but
7:32 this part is tough
7:33 in behavioral finance this feeling can
7:35 often be labeled as the ostrich effect
7:38 which is our tendency to want to avoid
7:40 negative financial information it’s that
7:42 feeling you get when you refuse
7:44 to look at your bank account after a
7:45 night out fearing what it might show and
7:47 yet once you pass this stage
7:49 it’s time for you to take control over
7:51 your behavior as a consumer
7:52 this often involves the idea of
7:54 budgeting deciding each month how much
7:56 you aim to spend on each of these
7:58 categories and sticking to it it’s about
8:00 systematically looking at what you
8:01 consume and finding ways in which you
8:03 can minimize these things to ultimately
8:06 live below your means in other words
8:08 having a lifestyle that still leaves you
8:10 with enough money to save and invest in
8:12 some form or another
8:13 it’s also important to note that before
8:15 you ever decide to invest
8:16 one of the most common practices in
8:18 personal finance is to keep an emergency
8:21 fund
8:21 a specific amount of savings that you
8:23 hold onto in case of an emergency
8:25 this fund would typically hold three to
8:27 six months worth of expenses
8:29 the idea however of living below your
8:31 means is an important one
8:33 because why would we choose to do
8:35 otherwise why would we choose to live a
8:37 lifestyle that we cannot afford or one
8:39 that places us
8:40 on this financial edge i could make an
8:42 entire video on our cognitive biases the
8:44 ostrich effect is just one of which can
8:46 affect your financial position then
8:48 there’s hyperbolic discounting
8:50 a tendency to favor short-term rewards
8:52 as opposed to greater rewards in the
8:54 future this is you choosing to purchase
8:56 a new pair of shoes instead of saving
8:58 that money towards a future investment
9:00 or their social proof
9:01 our tendency to think and act as others
9:03 around us think and act
9:04 when the people around you are buying
9:06 one thing you buy it too
9:08 or when the people around you establish
9:09 money as a means of evil you’re likely
9:11 to assume the same thing too
9:13 the phrase keeping up with the joneses
9:15 summarizes this great problem of
9:17 consumption it’s a phrase defined by
9:19 google as trying to emulate or not be
9:22 outdone by one’s neighbors
9:23 they buy a new porsche you buy one too
9:25 they have nice clothes
9:27 you get some too they renovate their
9:28 home you do it too all in the attempt of
9:31 impressing or trying to keep up with
9:32 others due to some form of social
9:34 pressure only in today’s world the
9:36 joneses
9:37 are not literal neighbors they’re far
9:39 more present than that
9:41 we are all vulnerable to social approval
9:43 we really care
9:44 what other people think of us but the
9:47 problem is
9:48 we’re measuring our self-worth by how
9:50 many people
9:51 like what we’re posting governor of the
9:55 bank of canada stated it’s succinctly
9:57 for most canadians debt is a fact of
10:00 life
10:00 at least at some point
10:08 to be clear i’m not saying that
10:09 purchasing an expensive piece of
10:11 clothing
10:11 jewelry or sports car is a bad thing nor
10:14 do i think consuming is a bad thing the
10:16 aim of this video isn’t to philosophize
10:18 about the repercussions of a
10:19 materialistic view of the world
10:21 it’s about drawing an awareness to who
10:23 you are as a consumer
10:25 do you care more about appearing as
10:27 though you have money or actually having
10:29 money
10:30 the rat race isn’t about working a
10:32 nine-to-five job
10:33 but living life on such an edge that it
10:35 means that you are chasing the next
10:36 thing whether a paycheck or a material
10:38 possession
10:39 such that your greater life goals and
10:41 ambitions are placed in the background
10:43 in order to continue this race
10:44 a budget and keeping account of your
10:46 expenses have proven time and time again
10:48 to work and draw you out of this race
10:51 it’s fun to talk about making money or
10:53 imagining having as much wealth as
10:54 possible but what’s the point when your
10:56 relationship with money as a consumer
10:58 means losing it all or having to work
11:00 non-stop in order to fund that lifestyle
11:02 that is the real rat race but with all
11:06 of that being said
11:07 let’s talk about making money
11:11 now the stuff we teach here and have for
11:14 almost 30 years
11:16 is proven what’s up you guys it’s graham
11:19 here so we got to take a moment and talk
11:20 about what’s going on in the stock
11:22 market because as we’re finishing up the
11:24 week
11:24 stocks personal finance channels like
11:26 graham stefan or dave ramsey are great
11:28 for learning how to work on your
11:30 consumption side of the equation but if
11:32 there was one thing i wish they spoke
11:34 more about
11:34 it would be their ability to make money
11:37 and i understand why they don’t do this
11:39 it’s easier to reduce your expenses in
11:41 the amount that you consume than it is
11:43 to increase your income
11:44 when speaking to a mass audience giving
11:47 the advice that will work for most
11:48 people is typically the best choice
11:50 we see that there are entire communities
11:52 built up around focusing on frugality
11:55 the fire community is one example of
11:57 this a movement that adopts the strategy
11:59 of living extremely frugally
12:01 saving and investing as early as
12:03 possible with the intentions of retiring
12:05 as early as possible
12:06 minimalists also share a similar view to
12:08 the fire community although
12:10 more deep-rooted in philosophical
12:11 positions about the world and
12:12 materialism at large
12:14 people like graham steffen or dave
12:16 ramsey promote strategies that fall in
12:18 the spectrum of living frugally saving a
12:20 lot of money and investing in the long
12:22 run
12:22 and there’s nothing inherently wrong
12:24 with this strategy it works for a wider
12:26 range of people with varying degrees of
12:28 income
12:29 but let’s be honest graeme stefan
12:31 doesn’t rely on cutting coupons or
12:33 living an incredibly frugal lifestyle to
12:35 be making a hundred to two hundred
12:36 thousand dollars a month
12:38 from youtube nor does dave ramsey rely
12:40 on these strategies to have an estimated
12:42 net worth of 55 million dollars
12:44 these people are utilizing a means of
12:47 production at mass scale
12:48 in my video the untold truth about money
12:51 i talked about money being equivalent to
12:53 your perceived value in the market and
12:55 the most impactful way of increasing
12:56 your value is finding a problem in the
12:58 market
12:59 creating a solution for that problem and
13:01 selling that solution to the market at
13:03 scale
13:03 this is the entrepreneurial route a
13:05 successful business at scale
13:07 is able to produce a large amount of
13:08 value to a society such that your
13:10 production side of the equation grows
13:12 exponentially in comparison to a
13:14 standard job
13:15 but this isn’t a route that everyone can
13:17 take nor should they try to
13:18 it’s about reflecting on your own
13:20 capabilities and whether
13:21 entrepreneurship is best suited to your
13:23 direction
13:24 with that being said increasing your
13:26 production doesn’t have to just come
13:27 from the strict definition of a business
13:29 graeme stefan uses youtube as a vehicle
13:32 to produce something
13:33 in this case videos about personal
13:35 finance at mass scale
13:36 it’s one reason that i chose to create
13:38 videos on youtube as well
13:40 it’s a vehicle to produce something in
13:41 this case documentary style videos at a
13:43 mass scale
13:44 to a point where i can now do it full
13:46 time and build a business around it
13:48 producing is about providing relative
13:50 value to the market in some shape or
13:52 form i utilized my skills with acting
13:54 presenting storytelling and video
13:56 editing to create videos that i hope to
13:58 be somewhat entertaining and educational
14:00 and thankfully the market responded
14:02 positively your form of production may
14:04 be developing an
14:05 app or software that is solving a
14:07 problem you believe the market would pay
14:08 money for its solution
14:10 or perhaps a fitness brand that is
14:11 branded extremely well and utilizes its
14:14 community better than most other fitness
14:16 brands as i believe is the case with ben
14:17 francis and what he did with gymshark
14:20 for most people labour in the form of a
14:22 standard 9-5 job will be their means of
14:24 production
14:25 but this doesn’t mean that your ability
14:26 to produce stops there
14:28 understanding yourself as a producer is
14:30 about understanding ways in which you
14:32 can produce value to the market
14:33 if you can produce value at a large
14:35 scale then it means earning money
14:37 at a large scale the internet has
14:39 thankfully provided a great deal of
14:40 opportunity for us to be able to produce
14:42 something and put it out to the market
14:44 whether the market actually wants what
14:46 you have produced can only be determined
14:48 once you’ve released whatever it is that
14:49 you’ve produced
14:50 so to summarize it’s first important to
14:53 bring awareness to yourself
14:54 as a consumer understanding what you
14:56 purchase and why you purchase by
14:58 journaling your consumption and then
15:00 giving yourself a budget to manage and
15:01 control that consumption producing then
15:04 becomes a matter of maximizing the
15:05 amount of value you can bring into
15:07 society
15:08 through a job a business or some other
15:10 means of production
15:11 this is a framework that has helped me
15:13 greatly as i’m sure it’s helped
15:15 countless others who have a vested
15:16 interest in making money
15:19 like this isn’t just sushi we’re talking
15:21 about anymore like this is this is
15:22 substantial
15:23 yeah and then to go from that to like
15:25 this focusing
15:27 is that 170 454 dollars yeah
15:31 that’s insane
15:41 hello hello my friends before you click
15:44 off the video just yet i want to say one
15:46 thing thank you
15:47 so much for watching to the end of this
15:49 video you watching to this point is
15:51 hopefully proof that i’ve provided some
15:53 kind of value to you in some way or
15:55 another so
15:56 be sure to hit the like button and if
15:58 you want to see more videos around the
16:00 topics of
16:00 business money finance in general then
16:03 be sure to hit the subscribe button i’ve
16:05 also got a patreon where i post behind
16:07 the scenes stuff and i do
16:09 questions and answers and i’ve got a
16:11 bunch of other exciting plans for it so
16:13 if that interests you and you’d like to
16:14 support the channel further do check it
16:16 out the link is in the description below
16:18 now for me personally combining what i
16:20 know about personal finance
16:22 and entrepreneurship has really helped
16:24 me the most and as i mentioned
16:26 this youtube channel was one way in
16:28 which i knew i could produce some kind
16:30 of value
16:30 into the market at scale if you want to
16:33 do more extra reading on these subjects
16:35 if it interests you there’s two really
16:36 good books
16:37 on personal finance related stuff the
16:40 millionaire next door
16:41 and your money or your life these are
16:43 really good personal finance books
16:45 and of course if you know me you know i
16:47 really love
16:48 mj demarco’s work so check them out if
16:50 you want to also see the
16:51 entrepreneurship side of stuff but with
16:53 all of that being said my friends i hope
16:55 you have a wonderful rest of the day
16:57 i will catch you in the next video or on
16:59 my instagram or twitter if you have me
17:02 on there
17:02 as usual hands ahead salute
17:06 too many days is yet to come
17:12 too many times has come to pass
17:19 too many moments put aside
17:23 getting out alive
17:26 getting out of
17:32 letters in the sand