6 Brutally Honest Financial Truths You Can't Afford to Ignore

in this video I'm going to share with you six brutally honest pieces of financial truths that you may not have considered would absolutely need to know if you ever want to get your financial life together now let's not waste any more time and jump right into it let us start with a statement that might be a very controversial statement the economy is not really to blame for your financial troubles now before you roll your eyes hear me out yes wages haven't kept up with the rising cost of things especially housing but if you look at the data St stigant wages are not the main cause of most people's Financial struggles crazy as it sounds more than half of Canadians and Americans earning over $100,000 a year say they are leaving paycheck to paycheck so clearly income alone isn't the problem if you're making six figures and you still can't pay your basic bills it is not the economy it is that you're living beyond your means and let's be honest we've all been there if you've got a $500 car payment and you're constantly ordering takeout because you can't be B bothered to cook you're living beyond your means if you are always on Amazon shopping even for things you don't really need you are probably living beyond your means it's not about how much money you earn it's about how much money you keep someone making $75,000 but living on $50,000 is doing better than someone earning $200,000 but living off $250,000 so unless you're optimizing every dollar the economy isn't your biggest problem you are and since we're talking about leaving beyond your means this next point is something I know you may definitely resist but I know I've got to say it all the same your car is costing you way more than you think many of us are driving cars we just cannot afford maybe there's something in the water we are drinking because why do we all buy cars that we can't afford that monthly car payment is killing your ability to save and invest and if you didn't know let me announce to you that an expensive car does exactly the same thing as a cheaper one it gets you from point A to point B the only thing is that you won't have people walking up to you after church to say boy your car is a machine while you smile sheepishly and say now God apart from that there's no difference if you cannot walk into a dealership and pay for a car outright then you cannot afford it car financing is a trap that keeps you in a cycle of NeverEnding payments trust me you will be much better off financially if you save that car payment money and invest it instead but you won't hear but I've said it anyway next let's tackle something else that I see is gaining popularity on social media and that is this there's a lot of people on social media saying don't go to college it's a waste of time and money and a college degree isn't worth it anymore now there are people selling the idea that a college degree does not give you a good return on your investment the reality is many people are drowning in debt for degrees they didn't need or are not even using but even though this school of thought is gaining popularity I beg to differ sure do the math and don't blind assume that getting a degree will lead to a higher paying job it's not the guarantee it used to be however I think that earning a degree dramatically increases your lifetime earning potential and is absolutely required in many fields for example to be a registered nurse you need to go through school and then pass certain exams to get a license the key is to choose a career wisely and not going into debt for a degree that will not give you the income you desire a college degree gives you options and having options is great and don't think of college as a job training it's about improving yourself which makes for a better foundation for whatever you end up doing later as a career overall a college or university education is what it that's what I think and I also o think that I would appreciate it if you could just like the video if you are gaining any value and leave a comment on what your thoughts are on this college or no College debate and now for some tough love there's generally nothing like quick wealth Building Wealth is slow and boring Building Wealth is like watching grass grow or was waiting for the Wi-Fi to reconnect it's slow and honestly little boring if you're hoping to wake up a millionaire tomorrow well you might want to hit the snooze button on that dream forget all those get rich quick schemes they are just that schemes real wealth building happens over time through consistent long-term investing That's The Not So Glamorous truth except you inherit wealth or win the lottery there's no magic button just the SL slow steady grind of long-term investing and Building Wealth trust me no one ever got riched by accident they just stuck with it one step or $1 at a time now this next one is another thing that I struggle with I hear it all the time and I have even said it myself and that is that you will never Achieve Financial Freedom working for someone else but that is a nuanced statement it it's true if you an employee your income is capped sure you might get a raise or a promotion but your boss is never going to pay you what you're truly worth however when you work for yourself whether through a side hustle or your own business your earning potential is practically unlimited you decide your rates and you can scale up as much as you want that statement is generally true but I have to disagree with the idea that one cannot become financially independent unless they own their own business it is not always true there are employees at high income jobs that are more financially independent than many business people some business people are losing money meanwhile some employees are financially independent simply because they save and invest if you living below your means and saving aggressively you can become financially independent even though you are an employee moreover working for an employer can provide benefits that self-employment does not specifically group rate Health life and disability insurance matching rrsp or 401K contributions and if you're lucky lifetime pensions and please you should only work for yourself if you you have the temperment for it it sounds glamorous but it definitely is not for everyone plenty of people cannot take the stress of not knowing how much money they will be making at the end of the month and not everyone has the creativity or the variety of skills needed to make it work if you can you should but if you can't don't feel bad about working for someone else the stability and reliability of income can be what the tradeoff but not everyone is cut out to be self-employed I need to say that over and over again this next piece of advice is for those who invest in the stock market please note that time in the market beats timing the market rather than stressing over when to invest based on Market highs or lows focus on investing consistently it's all about staying in the game long enough for compound growth to work its magic why don't you do this instead you invest into your Diversified funds and you just let that money grow over time and I know it doesn't sound glamorous there's nothing exciting or sexy about putting your money into an index fund and then just waiting for what 30 years but that is honestly how true wealth is built it's not about hitting home runs it's about hitting singles consistently and letting time do the heavy lifting now for the last Point number six this is probably one of the most important yet often overlooked pieces of financial advice you have to stop caring what other people think about you seriously one of the biggest reasons people end up broke or in Deb is because they feel pressured to keep up with others we've all been there you see someone driving a fancy car or living in a big house and you think to yourself I want that too but here's the thing you have no idea what their financial situation really looks like that person in the expensive car might be drowning in debt barely making their payments while you're over here trying to keep up and dig yourself into a hole of debt the truth is most people are too busy worrying about their own lives to care about what kind of car you're driving or what brand of clothes you're wearing so why stress yourself out trying to impress people who aren't even paying attention living within or below your means is one of the smartest Financial moves you can make and it gives you the freedom to live life on your terms not someone else's none of these brutally honest pieces of financial truths are particularly fun or flashy but they are the truth they are brutally honest Financial truths that some of us already know but are ignoring or some of us need to be reminded about and if you're serious about getting your finances together these are the principles you need to follow religiously now you tell me what is that one piece of financial advice that has changed the way you manage your money drop a comment down below and don't forget to like And subscribe for more content like this now talking about Investments to grow your wealth why don't you check out this video next to learn about the best investments in Canada you need to that thanks so much for watching and I'll see you in the next one