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- All right, kids, today we're playing Two Truths and a Lie. I'm gonna tell you three facts about myself, and you're gonna tell me which one's the lie. Let's get started. I'm actually 5'6". The first album I ever purchased was Britney Spears' Baby One More Time. My second grade teacher thought my name was Nicholas for a full month. Got your answer? Which one's the lie? It was the last one. My teacher didn't call me Nicholas. She didn't call me anything. She didn't talk to me. - That's just sad. - You thought I was 5'7", didn't ya? Fooled ya. I am 5'6".
And my first album was Britney Spears' Baby One More Time, and I have no regrets. I regret nothing. The end. Listen, the point behind that whole game is that there's tons of myths out there parading around as truth, especially when it comes to money. But the real truth is that these myths are keeping people broke. And it's about time we call out some of these so-called truths for what they really are. Plus, once you know the real truth about money, you can start making real progress on your wealth-building journey. So today, we're going myth-busting.
But first, you know what another myth out there is? That it doesn't really matter if you like, subscribe, and share this video. Because the truth is it 100% matters. It matters to the algorithm. It matters to your financial future. And most importantly, it matters to my mom. She watches the subscriber numbers and she's not that impressed.
So kick that myth to the curb, click those like, subscribe, and share buttons. If not for me, do it for May Camel. She deserves it. I'm doing my part. All right, first myth. My credit score is everything. You see, the finance industry has been working hard to make sure you wholeheartedly believe that a credit score is what you need to conduct business, purchase a house, buy a car, and even get a date. Yeah, literally a date.
You don't believe me? One dating app user, Leah Niswander, went viral when she revealed getting 17 dates in 30 days after adding the exceptional score of 811 to her profile. And her matches responded saying things like, this is the best thing I've ever seen on this app. And that's a plus in my book and marry me. But what these future lovers aren't considering is that your credit score really only judges you based on your relationship with debt. In other words,
It's an I Love Debt score. So hold on to your seats for this truth bomb. You actually don't need a credit score.
Because the only people who need a credit score are people who plan to take on more debt. So here's a better goal, to get out of debt and stay out of debt. And debt-free people don't need a credit score. Why? Because they're not taking on more debt. It's that simple. Despite what people say, you can live a completely normal, successful life without one. Trust me, I've done it. And even if you're thinking, "You can't get a house without a credit score, how am I gonna get a mortgage?"
That's another myth. How do I know? I got a mortgage without a credit score using a process called manual underwriting. And I've done copious amounts of research on this exact topic for my new book, Breaking Free from Broke. And I've got a whole chapter on credit scores and how to live without one. And if you want to check it out, if you want to have your mind blown, I will link to the presale below where you can get a copy. Myth number two, old cars just aren't as safe.
Buy a new car, they said. You won't have to worry about repairs or maintenance, they said. Well, tell they to shut it next time. Because first off, safety is always a top concern. I mean, they call me Cautionary George around here. I keep an EpiPen and paper towels handy at all times, just for safety. But again and again, one of the most common arguments against buying used is that it won't be as reliable as the new ones rolling straight off the assembly line.
Well, that's hogwash. The truth is you can find like-new used cars that are just as safe and dependable as a new car at a much cheaper price. In fact, Consumer Reports data shows that some newer cars, especially models in their first year of production, are among the least reliable cars you can drive. Well, well, well, how the turntables. Sometimes I'll start a sentence, and I don't even know where it's going. I just hope I find it along the way.
It goes on to say that from faulty air conditioners to wonky transmissions, many drivers of newer model cars end up making constant trips to the mechanic or getting manufacturer recall notices in the mail. So when you're buying a used car, here's what to do. Make sure you're choosing a make and model that's been historically reliable and always get a pre-purchase inspection from a mechanic that you trust. So just keep in mind when you're car shopping that new doesn't automatically equal safe. And the same advice applies when boyfriend shopping, Ashley. Swipe with caution. ♪
Hey, look what I got.
Myth number three, I'm too old to win with money. Let's talk about this. According to the State of Personal Finance study from Ramsey, more than half of Americans are not currently investing for the future. And even more, like 60%, feel behind on their retirement savings goals. Let me say this loud and clear, but not too loud. I don't wanna spook you. It's never too late to start preparing for your future. Stop yelling at me! No matter how old you are or how much or how little you have saved so far, there's always something you can do. And if you still think you missed the boat,
Imagine this. Let's say Crystal is 40 years old, still quoting Legally Blonde, and makes $55,000 a year as a pet groomer. Oh, and she has nothing to say for retirement. Zilch. Well, Crystal starts listening to the George Camel YouTube channel and decides to start saving 15% of her gross income for retirement.
which comes out to $688 per month. She puts that $688 into her 401k and IRA and does this for 25 years. By the time she's 65, Crystal could end up cracking the $1 million mark, assuming an 11% annual average rate of return, 1 million. And that's if her income never goes up for 25 years and she starts at 40 years old with zero. And her income will go up because she can prep a pup like no one else.
The truth is there's still time to get back in the game, even if at your age, the game is more like bingo than baseball. But you need to get intense and you've got to start putting these habits in place that will help you get to where you need to go. You can't change the past, but you can still change your future. And if you can still fog up a mirror, there is hope for you yet. All right, the next myth is somewhat along the same lines. Here it is. I can always save later. Okay, I get it. If you're so young and single that you call your toes dogs, yes, I don't know why they do that. I don't like it, but I can't do anything about it.
it youths then retirement may seem a lifetime away for you you say to yourself i can save later you know a little bit of yolo now i'll be all right i mean you've got you've got trails to blaze ice lattes to drink a world to see but there's a balance between living for today and saving for tomorrow in fact when you're young you stand to lose the most by postponing investing for retirement and delaying even by a few years could cost you hundreds of thousands of dollars
down the road. Here's why. Let's say Brandon graduates debt-free from college and begins his first job also as a pet groomer, making around 55 grand a year. And with the doodle varieties taking over the suburbs, that's job security. So our boy's off to a great start, but he makes a big but common mistake. Instead of saving for retirement, Brandon spends his income on a MacBook Air, a new car, and several trips to Iceland.
I mean, how many geothermal baths in those fish-rich waters do you really need to take? Let's fast forward a few years. Brandon is now 30, newly married and thinking about the future. So he takes a page from Crystal's book and starts investing 15% of his income into retirement. Again, that's $688 a month. By age 65, he'll have almost $3.4 million, assuming that 11% average return, and he never gets a raise.
Incredible. But listen to this. If Brandon started investing when he was 24, he could have almost doubled his retirement savings with close to $6.6 million. If you're doing the math, that means he missed out on over $3 million with the mindset, I can always save later. Sure, but you'll miss out on $3 million. Plus, when you compare that to what Crystal was able to save at age 40, that's a no-brainer. Side note, I'm curious how many dogs Brandon will have groomed by age 65. I'm going to go 50K. Comment your guess below. Winner will get an imaginary toy chihuahua.
Listen, when you're young, you have three huge benefits on your side that older people don't have. Time, the power of compound growth, and regularity. Be grateful. My tummy hurts.
The sooner you take advantage of compound growth, the less money you'll have to save in the long run to get the retirement you want. All right, the last myth we're busting today, I will always be broke. Now, if you believe you're always going to be broke, you're probably right. And guess what? What you believe has a direct influence on what you do. If I believe I can fly like an eagle to the sea, fly like an eagle, let my spirit carry me, I'm gonna jump off something and break my clavicle.
And if I believe gluten is equivalent to poison for me, I'm not going to eat it. I swear gluten's what killed Gandhi. So if you believe you're always going to be broke, you're probably not out there looking for ways to get ahead and prepare for the future. And to beat this mindset, my friend Dave Ramsey says you need to have a "never again" moment.
Now for Dave, it was going bankrupt. For you, it might be a little less dramatic. And for me, it was realizing my debt payments ate up almost all of my salary when I graduated college and I had no money to accomplish any of my goals. I had no money to buy bubble tea and I gotta have my boba.
- Oh my God, I choked on something. - These moments change you, they scare you, and they give you an opportunity to stop and say never again. Never again will I rely on debt to pay my bills. Never again will I have only 30 bucks saved up for an emergency. Never again will I ignore my bank statements for months on end. Never again will I spend rent money on Taylor Swift tickets and tacos. Never again. You see, broke people get out of debt and start winning with money when they decide they're sick and tired of being sick and tired. You're in control of your actions.
So it's up to you to get off the paycheck to paycheck hamster wheel. Now, it'll take some hard work and getting fired up and motivated, but I'm telling you, you can break free from broke.
Now, if you want some tips on how to do this, check out my video on how to stop living paycheck to paycheck. I'll link that below as well. So whether you've bought into some of these myths or not, the truth is they're still just myths. Either way, you can leave this nonsense behind for good. And I hope you do. You see, one of the things I'm most passionate about is helping people take off these rose-colored glasses and see lies that they've been fed
that are designed to keep them broke and make other people rich. Now, I'm curious what other financial myths you guys encounter on the daily. So comment below what myth grinds your gears when it comes to money. And while you're at it, share this video with an acquaintance who also grinds your gears. Consider it an olive branch of peace. Namaste. As always, thanks for watching. We'll see you next time.
