11 Things Broke People Say

About this video

• Video Title: 11 Things Broke People Say
• Channel: George Kamel
• Speakers: George Kamel
• Duration: 17:27

Overview

This video discusses common phrases people use to justify their overspending and financial irresponsibility. George Kamel analyzes 11 such phrases, explaining why they are detrimental to financial health and offering advice on how to adopt healthier financial habits, emphasizing the importance of delayed gratification.

Key takeaways

• "I deserve it": This phrase is a dangerous justification for overspending, as deservingness should not dictate spending habits. True deservingness lies in financial freedom and options, achieved through delayed gratification and saving.
• "Money comes back": This optimistic but often unrealistic belief can lead to significant financial hardship, as illustrated by individuals who face severe financial distress in their later years. It highlights the need for proactive financial planning rather than passive hope.
• "I'd rather enjoy life now": While being present is important, this mindset often serves as an excuse for overspending and jeopardizing long-term financial health for instant gratification. True enjoyment of life can be achieved through financial stability.
• "I'll pay it off later": This common justification for debt only deepens financial struggles and anxiety. It relies on the flawed assumption that future-you will be more capable of handling the debt, neglecting the immediate need for responsible financial behavior.
• "I work hard, so I deserve nice things": Similar to "I deserve it," this phrase links hard work to entitlement for excessive spending, ignoring one's actual financial capacity. Effort does not always guarantee the ability to afford desired items; focusing on income growth and saving is crucial.
• "It's an investment": This phrase is often used to justify purchases that are not truly investments, such as vacations or expensive self-care. While investing in health and wellness is important, it should be balanced with financial reality and not used as a blanket excuse for overspending.
• "We're doing better than most people": Comparing oneself to others financially is unhealthy and diverts attention from personal financial responsibility. True progress comes from running your own race and improving relative to your past self, not others.
• "I spend a lot less than other people": This is another form of financial comparison used to normalize overspending and avoid judgment. Instead of justifying spending, the focus should be on actual spending habits and reducing expenses if they are too high.
• "I'm gonna get a raise soon": Relying on future income increases to justify current overspending is a risky strategy that often leads to lifestyle creep, where increased income is simply met with increased expenses. Sticking to a budget is key to managing raises effectively.
• "It's not a big deal": This phrase is used to downplay financial irresponsibility and avoid shame or embarrassment. However, financial decisions are a big deal, and acknowledging their impact is crucial for taking control of one's financial future.
• "We're investing in a lifestyle": This justification often masks a deep need for external validation and admiration, leading to overspending to impress others. True financial health comes from internal security and addressing emotional needs, not through external spending.
• The Antidote: Delayed Gratification: The overarching solution to these "broke people sayings" is delayed gratification, which involves sacrificing immediate wants for greater future rewards and financial freedom.