Go to http://audible.com/grahamstephan or text ‘GrahamStephan’ to 500 500 and start listening today – Enjoy! Add me on Instagram: GPStephan
Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP – https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
This last week, one of the biggest headlines in the news was that we have a NEW threat to our economy: Americans are saving like it’s the 1980’s.
https://www.cnn.com/2020/05/12/investing/jobs-coronavirus-consumer-spending-debt/index.html
That’s right…Americans are now SAVING TOO MUCH MONEY, and that’s going to be the new downfall of our economy. After all, if people aren’t spending money…businesses won’t have as many customers, they won’t hire as many people, unemployment will remain high, some businesses might shut down, even more people will be laid off, more people will be competing for the same jobs, that drives DOWN the price of labor, businesses make less money so the stock market declines even more…and now, we’re stuck in a spiraling downtrend of economic mess, all started because people were holding too much money.
Basically…the convention wisdom is: We should all save a portion of our income, and the more money you can save – the better off you’ll be. But, the COUNTER to that argument is: We still need people SPENDING, because – otherwise, businesses don’t do as well, and when businesses don’t do as well, they hire fewer employees – and, when fewer employees are hired, you’ll end up making LESS money – which means you won’t be able to save as much. So, saving money is good for you…but, saving TOO MUCH is bad for everyone else…and that’s where the problem lies.
HOWEVER…in terms of what this means for our economy…we can’t deny that the economy DOES benefit from a surplus of spending…the more money that gets spent, the more it circulates throughout our economy, and the more the entire economy can grow. When the spending stops, that’s bad for business…and bad for growth..
However…if people aren’t spending money…it has to EVENTUALLY go somewhere. And in this case, the more people are saving – generally, speaking – the more money they can INVEST, and the more money they can spend LATER as things slowly improve, which will – again, at some point, end up back into our economy.
Another benefit is that the more money people save, the LESS money is spent on debt re-payment – the less money spent on bankruptcy – the less money spent on payday loans – and that’s MORE free cashflow that can be left over for other, more valuable and important purchases.
We’re in VERY a unique time, NOW, where many businesses were FORCED to shut down, many people were FORCED out of work, and it’s unclear how much demand is going to pick up once things begin to normalize. Should businesses re-open, and there’s NO money to be spent…as it stands right now, that CAN be detrimental – and it’s something to absolutely remember.
So, YES – this is why articles like this point to high savings as a weakness of our economy. After all, the amount of spending and savings is directly correlated with the consumer confidence that they’ll make enough money to pay for the things they buy. When that confidence goes away…they begin saving more money.
HOWEVER…THIS IS A UNIQUE TIME. Businesses might begin to shift more online…restaurants might expand their takeout services…more people could work from home, where retail offices are no longer in demand – and, In the short term, this could be crippling to some businesses…but PROSPEROUS for others.
This might take some time to come back…and, inevitably, there will be businesses that just can’t adapt. Unemployment could remain abnormally high for awhile. But, I believe, EVENTUALLY, businesses will come back up, and spending will increase for the majority of people, although this could very well change the landscape of how we operate our businesses, where we work, and how we smash the like button for the YouTube algorithm.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Graham: *gets mad at working class ppl for spending money on coffee and food*
Also Graham: you’re saving TOO much >:(
Sell comcast stocks now!
What do you think about bitcoin?
I like your videos Graham but I’m gonna have to respectfully disagree with this one.
Why does this crack me up? Simple, because the government keeps pumping money into businesses, yet wonder why people aren’t going out and spending, yet refuse to make sure people have enough monthly income coming in to be able to spend. So yeah, of course people aren’t going to spend when 1) they don’t have work, 2) they may not get work for months, 3) they have to pay bills, and 4) there’s no income coming in, so now they need to save or else potentially become homeless and starve. Now what does the government decide? Do they decide to provide an income to people so as to make sure the ones who keep the economy going can actually support said economy this entire country relies on just to survive? NOPE, they’re gonna give money to businesses and use the honor system in hopes these businesses do the right thing, which as history has shown is never the case. Worst of it is that they’re not even preparing for the second wave of covid 19 that’s gonna make this first wave look like a vactaion, because to them, they don’t expect this to last long, even though history shows that once this country re-opens, if it’s re-opened before scientists and doctors say it’s safe, then we’re gonna see a far worse outbreak with deaths that could reach millions, and unlike other outbreaks, this virus is evolving and is able to reinfect people who have recovered.
I think people can’t really spend money because everything is closed. So they are forced to save it.
You are very motivating and your videos provide a lot of value.
The big oils is running low it will very be pricey in future
It’s a trickle down effect. Us spending will allow him to continue to be sponsored. Notice how Andre Jihk suggested saving on his channel (no sponsorship).
Why is no one talking about how the subtitles are in Korean???
A high savings rate is good for people. Capitalism only works when people accumulate capital via savings.
Less spending = less waste. #savetheplanet
I think millionaires and billionaires should spend ALL their money. If I’m wrong for having a few K in the bank then, wow.
He is saying get THREE free stocks and the link says TWO. I cant trust this 😂
Why is the subtitle korean? 😅
Top 1% : Please spend! Keep the economy going!
Everyone else: .
Graham going to start buying his coffee from a local coffee shop? And tip the barista?
So… are you gonna stop skimping on your coffee?
Do you play drums?
you want to spend money then spend your own !! DON’T WORRY ABOUT OUR’S!!!!!!
This country doesn’t produce anymore we spend money on Amazon for cheap Chinese junk. Why would I buy junk when I have just lost my job? Were you a used car salesman sir?
The economic shitstorm is unavoidable at this point .. spend less , get rid of what you dont need .. save cash at home , double your food pantry, and expect the worst . We can all hope and pray but we need to be realistic.
Your contradicting yourself.
They want us to spend more well they need to give us monthly or weekly Ubi payments or we gonna save more now so we are prepared for Future economic fallout
Saving is only a problem if you accept the status quo. Insanity is to continue to do the same crap and expect a different result. Things are hugely bad right now because we HAVE THE WRONG BUSINESS MODEL.
0:50 Americans are saving so they can buy that 50k house from the bank and then become rich by folowing your channel
wise man will not waste time with a you tube talking kid wet behind the ears
All these people in the comments saying “oh the rich should spend for us because we only have $1000 on average in savings” LMAO
We all spend, it’s just you buy liabilities and they buy assets. If you’re financially literate you’d understand how to make money work for you. Money doesn’t work very hard if it’s sleeping in a bank account waiting for your next 6 pack purchase.
Disagree with your advice on 3 topics: stocks, economy, and helocs.
I love how a millionaire is telling us regular people to spend our money. That’s why the economy is phucked now rich getting richer and poor staying poor by being high consumers. I bet if the top 1-5% put even 1/4 of their worth in the economy would be better off.
My job is secure. You go spend money
The money should be spent wisely not at someone request. When the value of a product is overvaluated your not throwing them on it. You save them for better deals. This is what everyone should start doing. Stop spending money on useless and overvaluated products so your money can get better.
wtf. saving 13% of your income is a lot? this is one of the dumbest thing ive ever heard ever lol.
I think I’ve learnt more from this channel than my entire time in high school
We are not spending money… Because we have no where to spend it… Theres only so much redbox and takeout.
Biggest threat to the economy is fake news and the Fed
Is this for someone who save money under his/her bed or someone who save money in a bank ?
Hey Graham! What kind of editing software do you use?
Most of you who are commenting negatively about this video clearly isn’t understanding “the message“!
First of all, if Americans don’t eventually spend money there will not be any jobs to give to the 35 million Americans who are unemployed right now. In fact those of you with jobs right now may end up with no job by getting laid off in the future if even the company you’re working for can’t generate revenue… and the only way that happens is when Americans get out and spend money. This is economics 101!
But what you’re also not understanding is he merely created this video to simply talk about the media claiming that the new economic threat is Americans that are just saving money. And he is merely giving you a simple lesson and economics of supply and demand. There will be no supply of new jobs until there is a demand for those jobs… Therefore the only way there will be a demand for more jobs is if you people with jobs and extra money from the government in stimulus checks get out a little and actually spend a little bit.
He’s also discussing that now is the time to cut back in unnecessary stupid and oblivious spending but a lot of Americans are doing such as blowing money on alcohol every weekend or over purchasing clothes or blowing money at strip clubs or high end restaurants and actually spend your money on things that will grow your mind. Which is why in the end of the video he’s offering to read a book on audible.
And I don’t know about most of you guys but not only have I saved my money but I’m also making money by selling stuff on Mercari, Poshmark, and eBay because I am a laid off single mother now a full-time mom… But I’m also spending a little bit of what I make just because I want to.
He’s referring to the paradox of thrift. People saving rather than consuming leads to a decrease in aggregate demand which leads to decreased output. Keynes talked about it, but was also mentioned in Fable of the Bees by Bernard Mandeville.
The YTA method will save everybody Graham 😂
If you had $70,000 in savings, how would you use it? Is that enough to invest and kick off?
You’re a fraud bro
Tell the 1% super rich to stop hoarding money.
Millionaires should go spend their money. Problem solved
I will need you to also go spend some money
Can I touch your drum set?
People would spend money if they knew they could but with prices going up I don’t see how that’s going to happen especially if they have no sense of security with their job.
I’m saving all I can. Don’t care what it does to the economy. I’m 47 and I am TIRED of my job. It is EXHAUSTING. I’m a healthcare provider and we are TIRED. Especially given this pandemic. Society will be lucky to keep those of us with lots of experience that have been doing this a long time. Good luck! I am saving, investing and getting the heck out of this career field. I have always loved helping people, but after 20 long years…I’m preparing to leave asap! You millionaires and billionaires can spend YOUR money! You all depend on us being idiots and consuming continuously and being in debt. Done, done and done!
Good job buddy for changing ur mind. Life is still ahead of you. Save for few years and do sthing that u r passionate about.
Agreed sir
“The problem isn’t that people have no money right now, its that they aren’t spending the money that they don’t have!!” wow…
Maybe as he have money he sees things in different prespectice.
Keep saving this was the way‼
You have failed to do it before.
Buy silver and gold to escape fake
Stock Market bubble.
Stock Market should be forbidde
it is science fiction giving trust money
value for the future and gamble.
The company’s should be rewarded only for the product the produce.
Not give them Artificial future value
that’s what this scammers are doing.
Creating superstar companies monopolies that look like God’s.
When a other bussines has to
do everything with their own profit.
The threat is HYPERINFLATION. That is why you should STOP SAVING. Turn whatever dollars you have into useful items. The more you save, the more the bankers will steal.
Ring prices down and I’m down
you need to start going to starbucks
Billionaires will still be fine. If we want to do any recovery it has to come from the bottom.
a tremendous employments web site is *_ONEBiz Op p .c om_* . it’ll empower you to put your hands on Pay checks enough without dwelling your home.
absolutely Can-do
so Engaging
When you have a debt based economy built on interest of course you need people to spend, because each consecutive individual owes another individual higher up and the higher ups owe each other. When currency has no value or is backed by nothing the illusion needs to be maintained or everything falls apart. Reality is, if you do not have gold or hard assets in hand right now you are in big trouble. Gold is at a shortage, when people come asking for their physical gold and no gold is produced, there will be a lot of trouble and you will see gold skyrocket to unbelievable figures.
So dumb, the fact that the majority of the country is struggling to pay there bills after not working for only a month is a terrible sign for the country
A lot of Youtubers recently are talking about a crash is coming a crash is coming.
However every week the economy is opening back up more and more people are going back to work. The unemployment rate will still be reletively high compared to last year but like i said every week more people are going back to work. I think the “crash” happened in the last week of March. The youtubers that keep saying a crash is coming this year dont take into account that every week more people are going back to work, every week positive Vaccine news is coming, new stimulus bill is coming, and this is an election year so Trumps crazy ass will do everything he can to bring the economy up so he could get re elected next year.
I predict in 2 years when the virus is gone we will have a new normal where people wash their hands more often and have to vaccinate their kids for covid before going back to school. I also think in 10 years the poor class will get way bigger, middle class way smaller. Houses more expensive but millineals wont be afford them so there might be laws or acts to lower the house prices 10 -15 years from now.
Stop saving coming from the millionaire who saves most of his income
I dont think he still save as much as he used to.
Get your CDL drive truck u gonna make money trust me
Graham: save money
Also Graham: Dont save money!
Me, and intellectual: Buys stuff, the steals the money so I spend and save
Austrian econnnnnn
The people in the comments, really watched the video?
This is the biggest “problem” in Japan
Companies have been ripping off workers for decades. They need to raise wages to raise consumer spending.
Too much adds in the content ;(
Hey Graham, just wanted to let you know that I’m using my free YT account on another phone to watch your videos instead of my premium account without ads, just so you get ad revenue from my watch time. That’s how much I appreciate your videos. xD
And yes, I smash the like button on both accounts! 😀
People are saving just in case they lose their job, or to make sure they are more prepared for something like this. Imagine having not saved anything and then getting laid off. People don’t want to be out of money either when the government tries to claim there is a second wave of this hoax virus coming in the Fall.
Literally just aggregate demand and aggregate supply. Its really just the rich and the governments move now in order to recover the economy.
audible is such a waste of money. books from the libary is way cheeper
Mr beast be like:
Gotcha
i kind of been spending alot lately. At first i dont believe this because when the stores first opened up they were so busy! literally flooding with people
Interesting how saving money allow us to invest and advance ahead BUT if everyone does it and nobody buys the economy collapses!! Holy Jasus!!
Definitely saving for a rainy day
to be honest, just know that everytime you remind people to smash that like button, it really works LOL. I keep watching all your video and forget liking it, so it’s a good reminder. keep up the good work
hypocrite?
I’ll admit i’m a hoarder.
So the rich that have the cash should spend and I am going to save for a house. Good to know.
Corporations get millions in bailout money and I get $1200? Sorry, Graham, but I stopped spending as a PROTEST against corporate control of America. I really don’t give a flying rat’s a** what happens to corporate america. Enough of it will survive to meet my basic needs.
Show some love and watch my new video!🥳
Ur an outright hypocrite
It sounds like a “generation step back” to me. Simply put, the older generation that came through the 80’s were used to loans, credit cards and pissing money on expensive consumables (alcohol and cigarettes), and have since retired and are no longer affected by lifestyle creep because they simply can’t afford it. The average 25 year old now is probably more financially savvy than the previous generations were at their age.
Thanks to sites like YouTube, we now live in a world where it’s easy to learn how to do things yourself. Saving money is very simple – if you can’t answer “How much do I spend” then you need to start tracking your outgoings. Note every purchase you make over a month and assess how much is going on stuff you don’t really need. If you have a car loan, get rid of it! Trade it in for something you can actually afford and promise you’ll never overpay for anything ever again. There is no such thing as a “good finance deal” because the lender is the only one that wins. Take a flask to work rather than buy a Starbucks, take food to work rather than buy from the corner shop. Walk wherever you can or travel for free where you can (get a bicycle). Get fit – most people could do with shedding a few pounds so clean up your diet and save some money too. Quit drinking, quit smoking and quit gambling. Learn how to invest. Set a savings target and smash it out of the park by thinking of ways how you could save money through good habits that day. I’m not advising people to stop enjoying things completely either, but do things as a treat rather than it be part of your daily or weekly routine. Learn to “make do” with what you have rather than want the next thing.
Most people’s expenses are autonomous and repetitive which is why things get out of hand so quickly. If you’re renting, could you live somewhere smaller and cheaper that’s also closer to work? Does your next device need to be new, or would a 2yr old second hand model that’s half the cost do? How many monthly subscriptions are you paying for but not getting the value out of? Spotify & Netflix is an expensive combination compared to Amazon Prime as you get access to both Music & Video together. Granted, you might have to lose out on certain content – but is that worth double the cost? Are you claiming tax relief on the things you need to buy for work, why not? Keep it simple, why not repair those damaged jeans instead of buying a new pair? It’s all just food for thought….
If you take anything away from this ridiculously long post please let it be that all of this can be broken down into a manageable, progressive lifestyle change. You don’t have to change everything in the space of a week, chances are you’ll make mistakes and go too far if you do. Just do 1 of those things this month, then reevaluate.
Need another channel to watch? Check out my content!
I hit likes to all your videos but when I want something in return like you replying back to my instagram posts aren’t answered.
I watch all your ads but you never reply back to me on instagram.
Hi Graham, I’m a huge fan. I follow you on all social media and see you as a role model as I am only a beginner in my personal finance business endeavors. As a person of color very interested in the personal finance sphere, and a big admirer of your work, I just wish you would say something about the Black lives matter movement. Anything at all. So many people look up to you and you have such a huge platform.
This seems like a problem becouse of the top %1
I save x amount of dollars by switching to quarantine
Do a quick google search for *ECOM BAZZOID* someone posted your courses Graham
Do a quick google search for *ECOM BAZZOID* someone posted your courses Graham
0:32 it’s the RobinHood investors.
Why are the auto generated subtitles Korean?!? How to fix this? ‘Cause I had to slow the playback to 75% to hear @grahamstephen properly with out subtitles to read faster >.<
I was left jobless since March 13, 2020. Only 5 months later am I finding a new job. Of course I am going to save as much as I can. And no I was not receiving unemployment benefits. You know how many millions applied for those benefits?
Yea I’m gonna have to give this video a dislike. OPEN UP BUSINESSES/SCHOOLS etc and just have HERD IMMUNITY. People should have been saving from the get go and we wouldn’t be in the whole mess we are in now, OR CONGRESS SHOULD BE SPENDING BY HELPING THOSE WHO WERE FORCED TO STOP WORKING. Sorry but you don’t have a leg to stand on, SINCE YOU ARE A MILLIONAIRE WHO DOESNT WANNA SPEND $5 ON A COFFEE.
No
I earn my living at a grocery store and do almost all of my consumer spending on groceries. Sue me.
As observerd lately,interest of making a fortune from crypto currency keeps growing but a lot of people seem to delve in without a properly laid strategy,which is important irrespective of your hodling or trading route
I have this coins pilled up in my wallet don’t know one can actually invest think am going to give Lydia kotevski a trial
Honestly I don’t usually comment but this section got me what people don’t understand is that this is a great opportunity.
This is quite needful for starters they shouldn’t settle only for videos,but rather have a deep thought about life which is not showed or made available to everyone
Wow I can proudly say that Lydia kotevski has really managed my account in such a way that winning is the only standard I know
I even checked her on Google she’s online too
1:02c.