In this video, I will share six reasons why it is more expensive to be poor. This is not a political video. I have no agenda and frankly no political affiliation. The truth is that being poor can, in many cases be more expensive than being wealthy.
Luckily for us, the majority of the six reasons explained in this video can be prevented or counteracted in one way or another.
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Hi everyone. What videos would you like to see next?
Who is going to FinCon in Washington D.C. September 4-7? You can pick up tickets here: https://finconexpo.com/fincon19/
@Soltani Albir With what?
@lelechim I’m sick I want your help
@lelechim Please, good man, ask me for help, at least try
@Soltani Albir I’m not a man, but I _am_ confused.
@lelechim Help me God help you I am confident
A simple, but elegant video thanks Nate!
Thank you!!!
$0 dollar down is a huge SCAM if not explained correctly at the time of purchase. I’ve seen people get hit hard with retroactive interest after they fail to pay off the full amount in time ( beware everyone) and the bank fees is spot on! Usually the people with lowest income are the ones paying the most in bank fees! 🤯 great video Nate as always!
It really is sad
*yet another reason to increase thy inome* 💪
It’s two important steps: budgeting/saving money and then finding a way to increase income!
@Nate O’Brien tru
Hello my friend, I hope your having a great day . I make videos on how to make a great amount of money online. Let me know your thoughts about the videos, thank you. It’s been epic.
Why are u at 216k subs u deserve more
I would be happy with having only 30 subscribers because it would mean that I’m speaking to a classroom full of people
@Nate O’Brien i don’t know what to say
New sub here
Great information, Nate! Thank you! Great inspiration to keep my YouTube channel growing 🙂
Thanks Jackie
I don’t disagree with you, but I do feel like you are grasping at straws a bit. Nearly all of this still comes down to financial literacy. The problem is that since financial literacy is no longer a part of the public curriculum, those who are in the lowest class tend to receive the least amount of education.
I would agree – even my best in the state public school does a crappy job teaching personal finance (the class is a requirement, but I couldn’t tell you a single thing I learned)
@best boi yeah that is the norm. Even though I want to to be added back to the curriculum, you know it’s going to be watered down like everything else.
Morally disgusting
I hope that one day they teach personal finance in schools
@Nate O’Brien in England they do at least in my secondary school
Money makes you more money. The rich get richer as long as they continue to invest in assets.
I was on grand jury duty a couple months ago. We had a teacher on the panel. She was shocked that I had just retired at age 47 with a 100% tax free income and am debt free after working in a kitchen on the Alaska Pipeline. We got on this topic and I said the same thing. That finance need to be taught. I was told flat out they are prohibited from teaching it because the slaves cant be educated. If the become financially independent they wont pay as much in taxes like me. I am no longer subject to Social Security taxes, Medicare taxes, unemployment taxes, income taxes at the state or federal level. I live in a state with no sales tax. Only local sales tax at 3%. Property tax goes away at age 65 and the state pays every resident an annual dividend. This is why they cant teach this. Im the rare exception. Imagine even 10% of the population doing what Ive done. Government would be finished.
Andrew Horstman You mean BUYING $1000+ cell phones and $400 sneakers WON’T make me rich????? What about $200 blue jeans?
How about if they’re already RIPPED when they’re brand new????
M Detlef that’s what they told me!! 😤 lol
Nate O’Brien It’s 100% SIMPLE, GRADE SCHOOL arithmetic. Taught in EVERY school.
I have 50k in my 401k diversified all over the markets but I feel I am not making shit.
This literally wouldn’t be a problem if schools taught financial literacy and real life skills as well as insight on aspects such as taxes, mortgages, loans, wealth, financial independence. With a little bit of financial advice so many people would be much better off. It’s a shame really.
Billy Paffas yep, government benefits from the more people who aren’t financially literate.
If they taught Financial literacy in schools, Many Colleges would’ve gone bankrupt ages ago since most students would know that college is a rip-off in many situations.
@Smart Joe as a recent college grad i agree! I went for business and got a major that has value however many of my counter parts are in music and art and photography…essentially they gave away $100,000 for something very low value
Depending where you go to school they actually do
The sad reality is that they need people ignorant to financial education, so they can keep them on the hamster wheel…
The dream of becoming rich is the demise of people who are not financially literate.
Well said.. a big problem is attempting to keep up with the joneses
Hey Nate, im in a weird situation right now. Im 20 yrs old and have $1k saved up so far. I dont make that much since I am working part time as I attend college. And I was wondering what should prioritize putting the $1k in? Should I open up a roth ira or should I put it in my wealthfront savings account? I already have 600 in my savings account. I need some advice!
Brian Alvarez its not enough
Jove Cayanan I know it’s not enough. I work and study 🙄
Well done. When I saw the title I wasn’t sure what to think. Done in a very respectful way
Appreciate it!
👍👍👍👍👍
Thanks for always watching the videos Ken!
What I learned from this Educational Video? Nate DOES NOT have a Political Agenda
I hate how polarizing politics are
@Nate O’Brien amen
I think he is republican.
@Mystery Buyer He is like Dr House, equal opportunity exploiter.
😆😆😆
Auto-Smash That Like Button..
I have found credit unions better to bank with than traditional banks..less fees, better interest rates
Agreed
I find that also true here in upstate NY
I totally agree! And I truly believe we need more financial education, because people in general don’t care about their finances, they only care of how much money they make. Which matters of course, but it’s not everything.
Financial education could solve so many problems
The most predatory business of all: the payday loan lenders. I knew someone who was in a vicious cycle with them and it was horrifying. Luckily they got out and never went back.
I cringe every time I see payday lenders… so sad
Haven’t seen something like this on YT yet, nice one @nate!
Thank you Akash
*Life is a dream for the wise, a game for the fool, a comedy for the rich, a tragedy for the poor.*
Smart man
I feel judged, lol. I’m no fool 😛
Naam Wynn – Personal Finance & Investing Yep!!! STUPIDITY IS a tragedy!!! THAT’s why the poor STAY poor.
TRUE
Neat!
I’m happy that online banks are getting rid of a lot of the fees traditional banks have!
Are you going to Fincon now? 😱
Yes, I realized that it would be foolish to not attend Fincon
@Nate O’Brien Awesome! I’ll be there too
Thanks for sharing your 2 cents about this.
Thanks for watching!
Good explanation Nate! Your decisions can make you either poor or rich. Love from a small youtuber 🙂
Very important topic Nate. Creating awareness, while imparting knowledge & understanding is definitely half the battle. If we can help one another in some small way, it’s much better than completely turning a blind eye to pervasive issue. On a side note: I totally give you props for managing to discuss this issue without acknowledging a political view. We could all tell how difficult it was for you.☺️
Thanks as always, Lisa!
Captain Vimes Boots Theory of Socioeconomic Unfairness.
Lisa Servon’s ‘The Unbanking of America:How the New Middle Class Survives” is a really important read to understand how the traditional banking system has failed many in our country, and how this has paved the way for payday lenders and such. I highly recommend it.
Crazy how the system is rigged to keep the poor poorer.
The real problem is the lack of financial education.
Nice hearing you talk about me.
Any time!
Can you talk more about stock markets? Like best guide for Robin Hood pleaseee and thank you
No more like 100% interest or 1000% interest 400 dollar PlayStation you pay like 1200 furniture for 300 you pay about 1000 basically you pay triple or quadruple for these items stay away from buy here pay here and 0 down schemes!
If I’m being completely honest I was getting douchetuber vibes from your thumbnails but boy was I wrong. Sorry for making that assumption and thank you for the informative videos!
No worries Carl. Thanks for watching the video
Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor –James Baldwin
Depends. When I was poor it taught me the value of living cheap and saving. I never changed my lifestyle. Now In retired at 47 with over $1 million.
CLUTCH_AND STICK They’re IDIOTS!!!!
Awesome vid, Nate
Thanks Brandon!
Solid video Nate, really thoughtful part about the decision making process that poorer people have to make and the lead onto the $0 schemes and predatory businesses are gold. In saying that I don’t like how some people make it an excuse to not improve themselves and dig themselves out of the financial hole they’re in. Seen it too many times when I was helping people in the legal sector who were 10-20 years older than myself. Also which books were you referring to in the video?
this guy is really a good guy because he explicitly states he doesnt have a political agenda and isnt preaching a certain political view, making this video very reliable and unbiased. thanks a lot man, you’re a really helpful guy
Appreciate it. This channel will always be the same. #1 goal is to provide value for free
@Nate O’Brien Thank you 🙂
OTOH, he incorrectly calls out general sales tax (proportional, not capped) as regressive, while payroll taxes are actually regressive (capped, not imposed on wealth-based income, only). It could be less about political bias and more about general lack of knowledge, but either way it’s not good.
I thought the toilet paper effect was the nearer the end of the roll you are the quicker it goes!
Double meaning!
Economies of scale must apply to people too! 🙂
Brilliant video! Learned a lot!
Credit Unions are thing. Gotta have options. Banks aren’t the only ones on the block.
Very true, I will make a video about this
I have used credit unions for three decades now!
Geez…am I the only one that gets this guy John Crestani pop out everywhere in my screen with his annoying ads? This happens to me especially when my patience is red lining while trying to find good, valuable guidance and instead I get a list of videos with fake gurus and characters flossing their rentals. Hoping I’m on to something by watching Mr. O’Brien.
I will never sell courses. This channel will always be free with the priority of providing value
@Nate O’Brien That’s what it looks like to me. Trying to figure out how to start something, but I’m totally overwhelmed.
Thanks for trying to keep the discussion apolitical, bad financial decisions will make you poor and keep you poor. It’s not ‘the man’ or the system whose keeping you poor, it’s a lack of financial education and in the information era ignorance is no longer an excuse.
Um go read a history book pretty sure it’s the man and the system both keeping a certain demographic down
Partly correct. But there are ways to escape it.
Great video, very good info.
Life is expensive. Take advantage of every free lesson. 💡
Free info is king
Nate O’Brien ::: In the total absolute of the word!!
What if u suck a skool
This is why a majority of my retirement portfolio is Wal-Mart stock, has been for 20 years, good returns
No agenda is much worse than admitting what your preferrences are
Great lecturer! Great teacher! Thank you, Nate.
Thanks as always John!
Awesome video! 🙌🤙
Thanks Julie!
Nate are you available for hire to look at my finances?
I am not a financial adviser. I make these videos for general educational purposes. I would suggest talking to a professional
Knowledge is power, and public schools do not give the correct knowledge……you can retire in less than 15 years working a minimum wage job, but if everyone retired at 33, then we would have no one in labor, and products would cost more, so the rich knew they would have to sacrifice 80% of the nation into poverty in order to have 20% in wealth, nature of the beast.
In Canada lower income people receive a sales tax refund from the Federal government every 3 months. It usually works out to between $20-$40 per month, depending on income. I wonder if any U.S. states also do this?
Nope
Nope. But unlike Canada there are places you can live where there are no taxes of any kind. And if you are really smart you can have a tax free retirement. I only pay a small amount of sales tax as our rate locally is 3% but a few miles up the road there is no sales tax. Property tax goes away at 65 and my property taxes are only $2900 a year. Im 47 and now that Im retired 100% of my income is tax free because my interest income isn’t taxed. Dividend and capital gain distributions from mutual funds are taxed at 0% on income less than $50,000. You just have to be smart about taxes and where you live. I don’t feel sorry for stupid people in high taxed states. They choose to be taxed at high rates.
@ALCAN52 Ugh, I live in New Jersey and I don’t think I could retire here 🙁 This is a nice area but the state government sucks.
Nope.
👍
Thanks for watching the video!
Thank you for this video! Gives so much insight into how poverty is so cyclical and it’s a trap that’s hard to escape. I remember my dad telling me how he got his last car because it was $0 down payment and he couldn’t afford a down payment after his old car broke down. He had to pay so much in interest for the past decade 🙁 anyhow, I’m just glad that I’m learning a lot from you and other youtubers on how to be wise with my money now that I graduated college and have my first job!
I’m dissapointed Nate didn’t let the people know that taxation is theft.
In the UK, one of our taxes is National Insurance, it starts off at 12% of our income but as you earn more, the marginal rate drops down to 2%.
Very interesting
Poor people get Tax credit. Like Earned Income credit
I noticed this same thing when I was poor and I always used to say it!!! Being poor is literally more expensive than being middle-class or rich. When you already have money, it’s easier to pay off your credit cards and other debts which means you’ll have a higher credit score, which means you will qualify for lower interest rates which will save you even more money, and if you’re renting a place you might even get to pay a lower deposit just for having a better credit score. It’s easy to get money and build wealth when you already have money. It’s hard as hell to dig yourself out of poverty when the entire financial systems are already set up to essentially benefit the rich (or those who already have money).
It’s hard to build wealth but being poor is also hard. Choose your struggle.
@Bret Roberts True. I chose to build wealth! Came from a very poor family and working my way up, with no family help at all.
Great video man
I’m in the Academy of Finance at my High School. It’s a Top 3 Finance Academy in the US! I feel so prepared to buy a house, invest and I have many important certifications. I am also practicing and getting certified to be able to do my own taxes!
You don’t say being poor cost more hmm maybe because your POOR ? -_- poor people don’t have money but they waste alot of Money
You missed Inflation. It is the number one insidious factor that disproportionately hurts those in a lower income.
I’ve watched a few of your videos now. I just wanted to say that I greatly appreciate this, and I hope you keep up the good work!
Thank you!
@Nate O’Brien ^-^
HE EATS BRAINNNNNNS!!!!!!!!
You are not being political yeah that’s true but you are definitely talking about politics here, I hope you realize that. Thanks for the video very helpful
You’re wrong about interest rates, low interest rate generates inflation which means it reduces the buying power of your dollar and it encourages people to live in debts instead of saving capital for investment.
I really wish I knew about the things mentioned in this video earlier in my life… aka in high school! I legit did not know what student loans or savings accounts were until I was 19, which is terrible! My parents really didn’t teach me that much about finances either unfortunately, so I had to learn on my own (I found Dave Ramsey through YT lol)
Great Video💕 Very informative!
92% of the poor ARE poor because they CONSTANTLY do STUPID stuff!!!!
Where are the spreadsheets about budgeting?
Love the video! So many things people need to beware of here. Personally, I haven’t seen a video like this, but it was extremely informative and beneficial!
Nate I totally agree! Thank-you for explaining it so well. I will definitely share this with my audience for sure. So many of us have been taught that being rich equates to being a ‘bad person’, so with videos like this one we can start to change that mindset and show the true realities, like you mention, how being poor actually costs you more! If you were rich instead, you could do so much more good in our world. I always tell me students that money is like a hammer, it’s neither bad nor good, it’s just a tool. If you have a lot of money and you’re a bad person, you will be able to do a lot of bad in our world, but just as equally, having a lot of money and being a good person, means you have the opportunity to do a lot of good in our world. So stop being poor, feeling like it’s a more ‘moral’ option and learn from Nate, being poor only costs you more, it doesn’t make our world a better place. That’s why I focus on teaching my students how to build a strong, healthy, wealth mentality and I love videos like this one that help show the actual facts being the truth of being poor and being rich. Great job Nate! Hugs 🤗😍😍
I think state run lotteries is a regressive tax too. Only poor people participate in those , and they often spend big sums on them as they believe it is their only way out of poverty although the chances of winning it is nearly 0%.
Nate O’Brien, great channel 👍, just curious why you specifically list CIT bank for savings, any good reason? Would love to hear your take on them. Thanks
Just curious, where do you get your shirts? Specifically the long sleeve single colored ones
h&m and uniqlo I believe he said
I’ve recently found your channel, and I instantly felt the difference from other channels where they just flaunt their wealth or give you obvious but hard to do tips. Instead you come across very genuine and really provide realistic solutions for everyday people. Keep up the good work man!
Here’s an idea that I’ve found helps with them bank fees. It’s called budgeting properly first. And then, setting up a minimum account balance requirement. E.i.- Let’s say that minimum account balance is set at $500 for your account to be free. You would then make sure you have more than the minimum account balance at all times. Any funds that is left after you’ve met the requirement is free cash.
Nate is underrated
No matter what, you will have the savers and the consumers; which side you choose is up to you. Glad I have friends who are aware of this matter as well. Great video, man. I was literally just thinking of this subject.
Great video! Very true points.
That toilet paper effect! Not having a car is a huge way that the poor spend more money, indirectly! When I was in college, I didn’t have a car so I took the bus and train EVERYWHERE. I was fortunate enough to live in a town with good public transportation, but I was still rather limited in what stores I could access, so I ended up having to shop at stores where goods were more expensive. I shopped at A&P, just a short bus ride away (the Kings down the street was even more expensive), since the ShopRite on the nearby highway would require a transfer. Way too much hassle for a grocery store trip. I couldn’t buy much at once either since I had to take my groceries with me on the bus.
I never thought of sales tax as a regressive tax. That’s a good point.
I’m fortunate enough to have a great credit score, and I’ve reaped so many rewards from my American Express, like a free Shoprunner membership and once got a free 3-month trial for Amazon Prime. I feel sad for those who don’t have access to such rewards 🙁
He’s good looking!.!.
Would it be Wise to live in Camper van or Class C RV to avoid taxes, Rent and or House Insurance and rent? I am 23 plan on learning to drive in December. I have my parents house to stay yet jobs are outside my range of public transit. ( I am Special needs not Nero Typical Human being) THe job I will apply for pays 35 to 40k per year out of that plan on only taking 6k for my self what should I do with remainder? Open a vanguard account and invest in ETF Bounds Money markets? IF Employers gives me 40k per year that leaves me with 34 before taxes to invest. What would $ smart person do with 34 per year to invest with?
No shit lol didnt need a video to figure that out
Please–in first 3 minutes he says ‘not political’
u make 15 grand a year like minimal age so they dont get taxed a hole lot u make 60 k a year yes probably the highest tax if then when u start making more and more a year taxes get less and less
Starting love your vids bro💯
I am watching from Romania and the tax system you are presenting in this video does not match(and other information as well) .I would like to understand more about dividents and how do they generate income.Keep up the good work!I am watching your channel with interest!
I love how Nate actually takes context in consideration when discussing these topics. It’s so refreshing. There are too many people on YouTube and elsewhere telling poor people horrible things and making them feel guilty. Guess what? That kind of talk doesn’t lead to changes in behavior. Change talk can start in many different ways and one of them is compassion, understanding, and speaking the truth. Someone seeing this video will be much closer to improve their lives than someone watching all those other a-holes on YouTube being willful ignorants. Thank you Nate. You’re my favorite financial guy on YouTube so far.
Watching this video made me think of that Rush Card debacle a few years back. I felt so bad for those who were affected by it.
I’m glad you’re teaching this stuff man, love your content, keep educating!
I think that this video has very interesting content and watched several vids of other youtubers that give financial advise no one made a vid about this topic.
Yard sales can help you save if you can get to them. You find amazing deals. I bought:
5 new 32 oz. shampoos for $1.00 per bottle some lady just happened to have.
A new Mach 3 razor for $1.00
$3.00 for a sleeping bag
$10.00 virtually new artist desk
$2.50 for new large bottles of antibacterial Lysol and Windex
Not to mention you can also purchase some things you can flip. Go to the flea market the next day and sell and make all of your money back making your investment virtually free:
I bought a lawn mower for $20 and sold it for $50
8 copper trees made from wire $0.25 cents per tree. Sold two already for $5.00 per tree.
Gallon jug of crystals and stones for $3.00. Already have sold $17.00 worth of crystals and stones and the jug is still over half full.
Great content! I like how you break this stuff down in a way that’s easy for anyone to digest. I also like how you strategically touched on the difference in money habits between lower income and higher income people. There are different types of thinking going on there and most financial gurus will talk about that. They’ll compare the different types of thinking and behavior using terms like “broke mentality”. Granted, they aren’t wrong but I can see where some might find such language condescending or otherwise offensive. Your content seems more applicable to the everyday person as opposed to the would be entrepreneur hoping to become rich.
Edit: Creating wealth is hard but being poor is also hard. Choose your struggle.
I honestly don’t understand how can people dislike your video
Amen!
You get the money from the poor, the rich keep it.
Anyone find the Excel sheets he said were in the description? 🤔
Rich people eat more so they shit more so they can buy toilet paper in bulk.
Are you into gaining paychecks over the internet? , a profitable place online for the motive of work for Moolha over your private laptop is for the most part *HomePAY .M E* , It will permit me work for 3 hr each day.
just been there, for sure Lenien
just saw it, it’s Better
magical and Confident
man , so Dignified
absolutely Singular
Hm. This topic is also highly dependent on the geographical location, infrastructure of the area, how the person was educated, their personal values etc etc.
For the toilet paper effect I kinda get it but you could also argue after several “buying tests” to see if you actually like the item, you could then buy in bulk and save money long term on repeat purchases.
Issues like how available grocery deliveries are, how efficient online shopping can be weren’t discussed…
I also think this video is applicable more to younger unmarried people with less family needs.