That's how you know it's good technique here.

Welcome back to another episode.

It is coffee time now.

Some of you guys may think I'm pretty cheap.

If I live in a place like this and I've got news for you.

I'm not cheap.

Maybe you're the one who thinks you're rich.

You're just going around spending tons of money.

You think you're richer than me?

You're not.

Maybe you just don't know how to manage money.

Let me explain to you why I'm so cheap.

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The biggest mistake that see a lot of people making is that they are assuming that the income that they're receiving it's going to come in every single day for the rest of their lives is not is going to stop.

At some point.

It's going to stop when you get fired or when you just voluntarily quit because you've had enough.

You don't like your manager.

You don't like how something's going at work.

Anything can happen.

Maybe just simply want to retire early.

And so that's the first thing is of thinking that what?

Each day, you're getting 100 bucks, 500 bucks, 1000 bucks a day, Whatever it is that you're making, that's not going to come in every single day.

You need to average that across the whole duration, in which you're going to be living up to say, 80 years old, maybe 90 years old.

If that's going to be your life span, and when you factor all that and you're not making like 500 bucks a day, you're making like, 50 bucks a day.

Maybe, and that's really your actual budget.

The other thing is that it is quite likely that at some point you're going to need this money, right?

You might need that when you're like, say, 60 years old, you've just had triple heart bypass surgery.

You've spent a ton of money and then you need to buy some food.

And you might be thinking to yourself, maybe even kicking yourself for that Porsche that you bought what you're in your twenties, you may be thinking, man, I wish I could just save some of that money such that I can actually buy some McDonald's today when I'm like, 60 years old.

Instead, what may happen is you gotta go around crawling around on the floor looking for rats or ends to eat for that day.

I like to imagine when I'm spending money that I'm spending from the end of the pile that picture myself.

Not when I have a bunch of money that bacon I'm healthy like I am today.

But when times are tough, when I'm actually going to need that money, when I've spent most of it in the bank, what decisions will that be proud of?

If I had made today And the thing is that most people don't have enough money to last them throughout their entire lifetime in the decently sustainable ego, the way they're going to have to end up leeching off their Children, maybe their friends.

And so we think about who's really paying for this Porsche that you get in your twenties.

It's your Children, is your friends, is the people who you're going to have to go ask him for help later on.

That's right.

You're asking for other people to help you buy that Porsche.

And unless you're absolutely sure that you're not going to need a single dime of help from anybody throughout your entire life, even when you get old, then I would think twice before you go ahead and buy some luxurious Porsche or something, some cars, some luxury that you don't really need.

Now the other portion of this has to do with lifestyle, and this has to do with budgeting.

Now.

I thought a lot about how can I set up a budget?

How can I decide how much I can spend suitably well and well, I can tell you one thing that if you decided to just be cheap.

You get rid of almost every single argument that anybody's going to have about you if you're cheap.

No one's complaining when you go and buy yourself some food, some water, some toilet paper, some basic clothes, that's all fine.

And that one's got a problem with that.

It's really going to cause a fuss where you go and you decide to buy yourself to Louis Vuitton belts.

Hey, you only need one.

Why did you go by two?

They don't understand your spending habits, your values off money.

What's going on here?

Maybe you guys can help me out here, but I've been thinking a long time about how I could set up a budget.

For example, let's say we set up a $500 budget.

Me and my wife, we each get 500 bucks to spend every month, whatever we want.

My question is with them, people just start splurging there on things that they don't really need.

Like it could encourage poor values around money, poor ideas about how it should be used, how should be safe and worse.

I think that it can cause an imbalance in the way that you use it For example, let's imagine that every month I decide to blow my $500 budget on a PlayStation for and I already have five PlayStation for his bun, just going to keep buying them just because I'm going to become a PlayStation collector.

I'm just going to have a bunch of these consoles sitting in my living room, and I don't really need them.

I only need one, but I'm just going to collect the bunch of them.

And then one day my TV breaks any TV.

Well, how good of a TV show that be at this point due to my money habits, maybe I don't want to just settle for basic TV.

Maybe I don't even want a standard for KO led TV.

Maybe I want an 8k HD TV.

Just because I'm used to being able to splurge on entertainment like I normally do well, I'm saying, is that there's an inconsistency in people spending behavior, right?

Like, how can they be that on some things you decided to go all out and that long other things that really matter.

You don't really know how much you should be spending.

You may even have to go very cheap.

Maybe just end up getting a release standard used old TV where that really counted.

You know, this could also happen.

If you were to go on that vacation trip on the vacation trip, there could be a bunch of activities cool restaurants to try.

Where's the money going to come from that?

If you've been blowing your budget every single month and so you may say, Well, you're going to just save your budget every single month you're just going to save your money and that's fine.

But what really ends up happening is it just causes everybody to kind of revert to living the cheapest possible life that they can being very basic about their spending.

And then that $500 budget that everybody caught each month is not really useful anymore, is it?

And so for me, the way I budget, which may not be the best way, by the way, is I don't have a fixed dollar amount.

I just have a standard of living that I'm a day, and their standard of living the way I value money is pretty basic, pretty much on part with the way anybody else spends money you know, when I was in my twenties and I was making some pretty good money at that point, I would just go around parking in illegal areas.

And if I had to pay like a $40 parking fee, I would just say, Fine, I got money, I'll pay it.

And I would just go around paying $40 parking fees.

I don't do that anymore.

I don't waste money like that because I think it disrespects money.

It disrespects people.

I go around collecting coupons.

I don't pass up good deals, either.

Now, why is this important?

Well, it's important when you're surrounded by other people.

Let's pretend that a friend buys you a $20 dinner and let's say that this friend was not very rich.

There were maybe pretty poor, and they spent their hard earned money to buy you a dinner within the bacilli.

If on the way to that dinner I decide that they just blow 40 bucks on parking fees because I felt rich and then yet my friend had to spend 20 bucks off their hard earned money to get me dinner.

I won the value, that person, the gifts they give me their hard earned money.

And the only way for me to really do that is to share the same value of money and to appreciate that as much as they do.

If I go around wasting a bunch of money on parking fees, blowing a bunch of money on expensive luxury goods and then the next moment I'm receiving a gift from somebody who worked far harder than me for something you know, that just wouldn't be consistent with my behavior.

The best thing for me to do at that point would be to refuse to give give it back in general.

I'd also note that when you're alone when you're single, it's very easy to go around spending money.

You know, you can go around by yourself a $5000 watch and you're fine.

You're all good with that.

But the funny thing is, when you're with a family, shouldn't everybody else also get a $5000 watch?

If I could get one, then everybody should get one.

You may be my wife should get one.

My kids, you get one.

Even my dog should get a $5000 watch.

Why not?

Why am I better than everybody else.

Why should I deserve it more than somebody else, right?

I don't really want to be in the position where I'm elevating myself above anybody else, and it was really going to happen is for every dime that you waste, it's going to be multiplied by the number of people in your life.

At that point, it becomes a lot of money that becomes wasted, unless I just want to be selfish about it and I'll be the only one who gets the waste money.

Nobody else can do it.

Nobody else would be approved for that.

Only I'm approved to waste money on luxury items.

One final point that I might make here is that spending money generally does not equate to bringing happiness a certain point.

It's good to have some comfort in your life, some security, some freedom.

But after that, it's not like buying things really makes you all that happy.

Sometimes I think about what If I were to buy this Porsche, it would be so much trouble for me, I would have to worry about maintaining it.

I would worry about every little scratch.

I'd have to keep checking it I want to protect this resale value.

It would be a burden on my shoulders on the type of person who would like to protect the resale value if just value and something I'm going to try and protect that to maintain it and make sure that I can resell it at the future point, at least recoup some of my costs.

That's just good practices.

That's consistent with the type of behavior that I like to have.

Materialism will make us late.

You don't own the things you buy, the things you buy, only you.

That's not all bad news.

There's certain areas where I really enjoy spending money, and that's with experiences with people.

When you're with people, everybody gets to enjoy an experience.

That luxury is shared among everybody.

Everyone can have a fun time.

There's no jealousy.

There's no arguments.

There's no unfairness.

There's no selfishness.

And usually when you look back on the time like that, you don't regret it either.

A good time had by all a good memory.

Something that people can remember generally is going to be worthwhile.

Usually in that scenario is not so much money.

That's the cost is going to be everyone's time, their availability, their willingness to do something altogether.

Getting everybody together.

That's going to be the primary issue at stake.

And I would say that over time this is about raising everybody standard of living together, such that everyone can together rise up his long term process.

Over time, you may get to the point where you can say, Well, yeah, we can afford this vacuum cleaner.

Seems good, everyone that our life is doing Okay, this is a purchase that we're not going to really regret.

It's useful.

It's going to save us a lot of time.

Grab that vacuum cleaner.

It's a little bit of electorate, but the purchase that you're sure you won't regret.

So as you're going through, just make sure that every purchase you make, you're sure you're not going to regret it.

Who knows?

You're always going to want to keep the option of early retirement open to yourself, right?

It's going to be sad when one day maybe you find you have some serious health condition.

You don't have much time left.

You're gonna want to retire early, such that you could enjoy the time you have left and yet you find that you had bought a Porsche early on in your life in your twenties.

And now you have to work another extra a year or two just to make that money back.

And you just don't have enough money at the time The luxury to afford for that time that you could have had any way Please feel free to share your comments below Let me know what you think If you like the video give a like and subscribe bounce you next time Bye.