7 Things BROKE People Waste Money On... | George Kamel

0:00 Most people are wasting their money on wants and not needs.

0:04 Like I don't think renting is wasting money.

0:06 Yet that's the thing people focus on.

0:08 And then I find out they're spending $300 in Door Dash

0:11 every month and they're doing buy now pay later for Coachella tickets.

0:15 And there's all sorts of ways you can get

0:17 the thing you want now without having the money.

0:19 And that's the part that scares me is we are we're such in a yolo

0:22 mindset of just well I'll never have wealth cuz the boomers took it all.

0:27 And who knows if the world's even going to be around.

0:29 Who knows if social security will exist?

0:30 So, let me just enjoy my life now.

0:32 Index funds are boring.

0:34 Retirement is a pipe dream.

0:36 Let's just put it all on black and sports bet and gamble and do

0:40 prediction markets and buy now pay later our way into some level of joy.

0:45 And the problem is that wears off real quick.

0:47 What was this study that came out with Coachella tickets?

0:50 Like over 50% of people borrowed money to go to Coachella.

0:54 It was it was close to half.

0:56 It was I want to say it was 40 40 something percent.

0:59 Yeah.

0:59 Borrowed money to go to Coachella.

1:01 That's crazy.

1:02 Can someone fact check that?

1:04 Over 60 over 60%.

1:06 According to what?

1:08 According to Billboard, over 60% of people that went to Coachella

1:11 borrowed money in order to get the the ticket.

1:13 Those just were the ones that were honest.

1:15 That's the crazy part.

1:16 They're all mostly young people who are mostly broke.

1:19 Wow.

1:20 And they're going, "This is a once- ina-lifetime opportunity.

1:24 Let me go when I'm young.

1:25 my favorite artist is going to be there.

1:27 It's going to be this incredible experience.

1:29 So, people can justify it real easily.

1:31 And when the payment is well, 0% interest on a payment plan.

1:34 I mean, I just went to Disney and interviewed people at Disneyland.

1:37 And half of them are going, "Yeah, I'm on the payment plan for annual pass.

1:40 It's 130 bucks a month, and me and my mom are both trying to pay."

1:43 How much do people spend at Disneyland?

1:45 On average, from talking to people,

1:47 the trips range from 5 to $8,000 for a couple of people.

1:52 So, imagine about a,000 bucks a day per person.

1:55 is what you're going to spend between lodging,

1:57 transportation, and it can go up from there.

1:59 But that's generally what I saw.

2:01 That tells me there there's an epidemic of people going,

2:04 I don't need to have the money now.

2:05 I can get it now and I can justify

2:07 it and eventually future me will deal with that problem.

2:10 What does this tell you about human psychology, human nature?

2:14 I think we're fickle creatures.

2:15 And uh as much as I want to say people are more

2:18 disciplined than I think and they can handle debt and handle payments,

2:23 time and time again, it's proven that it's just too hard.

2:25 I mean, the fall of man got us here.

2:27 And so humans want the thing now.

2:30 And we made it so easy,

2:31 so frictionless to get the thing now because back in the day to go to Coachella,

2:35 you kind of had to have a payment form to get that ticket.

2:39 Now, right there, it'll say, "Use a firm, use CLA,

2:43 use Afterpay, and pay nothing now or pay a small amount now,

2:46 and you can pay the rest over the next couple of months." And so,

2:49 that level of frictionless payment plans have caused us

2:53 to go into way more debt than we would have otherwise.

2:56 Yeah, but isn't that just a lack of personal responsibility?

2:58 I mean, just because it's there doesn't mean you have to go and do it.

3:01 Like, I wouldn't blame a firm because someone

3:04 took out a loan to go to Coachella.

3:06 That's to me it's more of a you know Yeah.

3:10 number one vict number one villain in this story

3:12 is the person doing these dumb things.

3:15 The number two villain is the predatory companies

3:18 that have normalized this and made it so easy.

3:21 So it's not like a firm there's it's not like they're such good people

3:24 of goodwill like we're just going to let these let them go on the trip.

3:27 They don't care about you.

3:29 You are a number to them and even if you default they'll write it off.

3:33 They'll come after you.

3:34 They'll sell it to a collection agency.

3:35 So either way, the lenders are always going to win.

3:38 And so the question you have to ask yourself is,

3:40 do I want to be a part of the system knowing that I'm

3:43 going to make terrible decisions all for a temporary experience or product?

3:48 What percent responsibility falls on the person versus the company?

3:52 100% responsibility on the person.

3:54 Uh I I think there's a lot less we can

3:57 do about Poly Market and Khi and FanDuel and Bet MGM.

4:02 There's too many lobbyists out there.

4:04 like we I I'm not going to spend my life trying to go after these companies.

4:08 I'll make YouTube videos about them trying to take them down,

4:10 but that's nothing to them.

4:11 They don't care.

4:12 They're making billions of dollars a year, growing exponentially,

4:15 increasing their shareholder value at the expense of a broke generation.

4:20 And so, I just know I'm don't I don't have

4:22 the power to go to the White House and fight the lobbyists,

4:25 but I do have the power to tell that person

4:27 to stop doing that, to get out of the system,

4:30 to use their own money, to wait, save up to where they can afford it.

4:33 And if they can't afford it, it's just a not now.

4:37 And if I can teach people how to budget, how to get out of debt,

4:40 all of a sudden they can start affording the things

4:42 in their life that they want without needing to turn to these companies.

4:45 So to the hundreds of thousands of people that are watching

4:47 this right now that are not where they want to be financially,

4:51 you George Camel, money expert,

4:54 would say this is proof that the system is rigged or it's just a personal

4:58 failure of the person listening right now

5:00 that's not where they want to be financially.

5:01 It's on them.

5:02 Yes.

5:04 Both and this is like improv.

5:06 Yes.

5:06 And so I wrote the book Breaking Free from Broke.

5:09 And the first twothirds of the book is about the system.

5:13 How the system exists to screw you over.

5:15 The system exists to keep you broke.

5:17 And then you have a choice as a human being with free will.

5:21 You get to decide whether or not you want to be a part of the system,

5:23 whether you want to participate and play the game

5:26 and play with snakes hoping you don't get bit,

5:28 which is how most people operate their life.

5:30 Right?

5:30 At 18, we're told, "Got to get your credit score.

5:33 Got to get a credit card.

5:34 Well, might as well get a car payment cuz who can afford a new car these days?

5:36 You want something reliable?

5:38 You don't want it to be in the shop all the time.

5:39 Well, who can afford college with the current rates?

5:41 Let's go into student loan debt.

5:42 Maybe a parent plus loan.

5:43 Maybe the government will forgive it." And all of a sudden,

5:46 there's payments all around us.

5:48 And we sign on the dotted line.

5:50 Nobody forced us.

5:50 Nobody had a gun to your head going,

5:52 "You're going to get in a brand new Kia Sto." You decided you wanted

5:56 the brand new car instead of the used one that you could afford in cash.

5:59 So that's the the growing gap is the people who decide I'm not going

6:02 to do debt are thriving because they're not

6:05 playing the game as interest rates go up,

6:07 as the costs of all this stuff go up with inflation.

6:10 Instead, real millionaires are buying four-year-old used Toyotas and Hondas.

6:15 And instead of going to the new car lot saying,

6:18 "Sign me up for whatever payment I can afford.

6:20 Stretch the loan out to 84 months.

6:21 I don't care.

6:22 I want to be in that car." So,

6:24 it's really all about fighting the inner child who wants

6:27 the thing and is whining about the thing versus maturity,

6:30 delayed gratification, saying, "I'm going to pause." So,

6:33 then a directly actionable thing to the people watching right now,

6:36 they're not where they want to be financially.

6:38 The actionable thing is to pay attention to your money,

6:41 probably for the first time.

6:43 When I ask people, "Do you do a budget?" They go, "Yeah, I mean, I do a budget.

6:47 I I've looked at my bank statement." No, no, no.

6:49 Do you do a budget?

6:50 Do you know what's coming in?

6:51 and do you know exactly what's going

6:52 out where it's proactive instead of reactive.

6:55 That one thing alone, like when you download every dollar,

6:58 you plug in your income, you list out all your expenses.

7:01 If you just do that, you are doing probably better than

7:04 99.9% of America cuz you have a true picture of if

7:07 you're spending more than you make or if there should be

7:10 margin that's disappearing into money leaks like buy now pay later,

7:13 eating out, and who knows what else.

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