I have a bit of a love-hate relationship when it comes to TikTok. While there is some great content on there, there are also some videos that make me question what people are thinking. This is especially true when it comes to financial advice. Today, I want to comment on some of the weirdest videos out there, both good and absolutely horrible. So, hit the like button and subscribe, because I need to scrub my eyeballs after watching this!
Questioning Outlandish Financial Claims
There are people out there claiming to make $10,000 a day. That’s $300,000 a month and $3 million a year. If you work for 10 years, that’s $30 million before taxes. Even after 40% in taxes, that’s still a lot of money, right? Wrong. Once you deduct living expenses, you might be left with around $15 million. While that may sound like a lot, it can be spent quickly. Alternatively, you could work for 10 years and aim for $100 million. What’s the point of that? It’s the stupidest thing I’ve ever heard.
Here’s the reality: with $15 million after taxes, at a 3% withdrawal rate, you would be making $450,000 a year for the rest of your life. If you increase the withdrawal rate to 4%, you would be making over half a million dollars a year. Who wouldn’t want that? People work their entire lives for much less, so why would anyone be disappointed with $15 million?
The Emotional Impact of Selling a Business
There’s a misconception that selling a business and having a windfall of money will automatically make you happy. However, that’s not always the case. It can bring up a whole wave of emotions and questions. What do you do next? What drives you? Many people find themselves feeling lost and depressed after selling a business because they are unsure of what comes next. Having money and time doesn’t automatically make a person feel fulfilled. It’s important to have a sense of purpose beyond money.
Unethical Financial Advice
One TikTok video suggests taking out a credit card in your child’s name to build for their future. However, the advice is not about building credit, but rather destroying it. The person in the video claims to have 18 different credit cards maxed out in their son’s name. This would ruin the child’s credit score and make it difficult for them to buy a home or a car. This advice is highly unethical and likely illegal.
Criticizing Dave Ramsey’s Teachings
Another video criticizes Dave Ramsey’s teachings. The person claims that Ramsey wants people to be poor because he encourages them to prioritize paying off debt over making money. The video also points out that Ramsey is not wearing socks or shoes, which the creator finds distracting. While it’s important to eliminate high-interest credit card debt, not all debt is bad. Debt is what this country and many wealthy individuals are built on. It’s about understanding the difference between consumer debt and strategic use of debt for investment purposes.
About controlling money to make money, Dave Ramsey takes the approach of paying down debt as the best option for the average person. He believes that paying off a mortgage with a guaranteed return of 4% is safer than risking it with other investments. He has been consistent with this philosophy for many years and is unlikely to change it.
On the other hand, Steve Harvey suggests having four bank accounts: a joint account for household expenses, a savings account, and personal accounts for independence. This approach allows for shared expenses while maintaining financial independence. Many people find this advice helpful.
Regarding the concept of making money, it is more accurate to say that money is exchanged for goods and services. Both parties benefit from this exchange, and if done well, one can make a profit. It is important to avoid the mindset that someone else’s gain is your loss.
As for financial advice, the speaker suggests saving 50% of income, although this may be challenging for most people. However, the idea is to prioritize saving and living within one’s means. The speaker emphasizes the uncertainty of life and encourages finding a balance between saving for the future and enjoying the present.
The speaker also shares a personal experience of visiting a Ferrari dealership to create the perception of affluence. While acknowledging that this may be misleading, the speaker highlights the importance of not wasting people’s time.
In terms of finding work, the speaker recommends approaching neighbors and offering services at an affordable rate. This can be a win-win situation where the neighbor gets help with tasks they have been putting off, and the speaker earns some money.
Here are some tips on how to become skilled in graphic design:
- Learn Photoshop and other graphic design tools.
- Sell your services on platforms like Fiverr or Upwork for as low as $10 per hour.
- Consider becoming a paid intern to gain experience and learn from professionals.
If you choose to become a paid intern, offer to work for a lower rate initially to showcase your dedication and willingness to learn. At the end of the month, if your employer feels you were not worth the agreed amount, they do not have to pay you.
Initiative goes a long way in finding work opportunities. Approach neighbors or local businesses and offer your services at a reasonable rate. Even as a 15-year-old, showing this kind of initiative can open doors for you.
Paid internships are a great way to gain experience while getting compensated for your work. This is especially useful in industries like real estate, where it may take time to start earning commissions. By working for free or at a minimal rate for a set period, you can learn the ins and outs of the business from experienced professionals.
Playing Monopoly with real money may seem like a fun idea, but it is not recommended. Investing wisely and diversifying your assets is a better approach. Consider investing in assets like gold, silver, and stable currencies like Swiss francs, US dollars, and Singaporean dollars. However, relying too heavily on physical assets may not be the best strategy.
Instead, focus on building an emergency fund and investing in a diversified portfolio of index funds. This way, you can have both short-term security and long-term growth. Additionally, consider keeping essential supplies like food and water in case of emergencies.
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