The MONEY Expert: The Simple Plan That Made Me A MILLIONAIRE
Added: Jan 29, 2024
In this podcast episode, George Kamel, a personal finance expert, discusses his journey from a negative net worth to millionaire status in under a decade. He emphasizes that anyone can achieve financial success by following a simple plan and being intentional with their money. Kamel shares the top five habits of millionaires that he studied and applied to achieve his own financial success.Key takeaways
Living on less than you make is crucial for financial success, regardless of income level.
Practicing delayed gratification and making sacrifices in the short term can lead to long-term wealth accumulation.
Driving used cars and avoiding car payments can prioritize financial goals over material possessions.
Believing in financial control and taking ownership of past financial mistakes is essential for building generational wealth.
Aligning financial goals with a spouse and being transparent about finances is a powerful tool for wealth building.
Living on Less Than You Make
Kamel emphasizes the importance of living on less than you make, regardless of income level. He believes that many people are willing to live in mediocrity for 30 years instead of sacrificing for three. He encourages intentional spending and delayed gratification, stating that discontentment and fear of missing out often lead to overspending and debt accumulation. Kamel suggests that practicing contentment and focusing on long-term financial goals can lead to greater wealth and peace of mind.
Practicing Delayed Gratification
Kamel discusses the concept of delayed gratification and the impact of instant access and instant gratification in today's culture. He encourages individuals to play the long game and make sacrifices in the short term for long-term financial success. He believes that practicing delayed gratification can lead to greater financial discipline and wealth accumulation over time.
Driving Used Cars
Kamel shares that 97% of millionaires in the study drive four-year-old cars on average. He emphasizes the importance of avoiding car payments and the depreciation of assets. Kamel encourages individuals to prioritize financial goals over material possessions and to make intentional decisions about their spending, especially when it comes to major purchases like cars.
Believing in Financial Control
Kamel highlights the belief of millionaires in their ability to control their financial destiny. He discusses the importance of taking ownership of past financial mistakes and traumas and focusing on building generational wealth. Kamel encourages individuals to shift their mindset from victimhood to empowerment and to take control of their financial future.
Creating a Budget
Kamel stresses the importance of creating and following a budget as a key habit of millionaires. He believes that budgets are not just for broke or wealthy people but for intentional individuals who want to take control of their finances. Kamel encourages regular budget meetings and tracking of transactions to ensure that individuals are aware of their spending and can make informed financial decisions.
Overcoming Financial Stress
Kamel addresses the root of financial stress, which he believes stems from fear of the unknown and economic uncertainty. He encourages individuals to focus on what they can control and to ignore the noise and distractions of external factors. Kamel emphasizes the importance of taking responsibility for one's financial situation and building confidence in a solid financial plan.
Challenging Shame Around Money
Kamel discusses the shame associated with both being in debt and having an abundance of money. He believes that shame around debt has been lost in a culture where debt is celebrated, while shame around wealth stems from comparison and fear of making others feel small. Kamel encourages open conversations about money and wealth, emphasizing the importance of empowering and encouraging others on their financial journey.
The Power of a Spouse in Wealth Building
Kamel believes that a spouse can be one of the most powerful wealth-building tools. He shares his personal experience of starting his marriage debt-free and investing for the future with his wife. By aligning their financial goals and working together, they were able to pay off their home in 26 months and build a substantial net worth. Kamel emphasizes the importance of being on the same page with a spouse when it comes to financial decisions and the impact it can have on long-term wealth building.
Questions to Ask Before Marriage
Kamel suggests asking important questions about financial values and views around debt before getting married. He believes that understanding a partner's financial values and attitudes towards money is crucial for a successful marriage. Kamel also highlights the significance of open and honest communication about finances within a relationship to avoid potential conflicts in the future.
Challenges of Financial Infidelity
Kamel discusses the concept of financial infidelity, where one partner hides financial decisions or actions from the other. He emphasizes the importance of transparency and trust in a relationship, especially when it comes to financial matters. Kamel shares that financial infidelity can lead to resentment and breakdown of trust, which can ultimately impact the overall health of a marriage.
Overcoming Financial Challenges
Kamel acknowledges that financial challenges can be overwhelming, especially for individuals with moderate incomes. He highlights the impact of lifestyle creep, where individuals gradually increase their spending as their income grows. Kamel emphasizes the need to live within one's means and avoid accumulating unnecessary debt, which can lead to financial stress and anxiety.
The Student Loan Crisis
Kamel addresses the student loan crisis in America, describing it as a "normalized scam." He emphasizes the rising cost of college tuition and the lack of guaranteed returns on investment for many degrees. Kamel encourages individuals to consider alternative paths to education, such as trade schools or online learning, to avoid accumulating significant student loan debt.
The Wealth-Killing Impact of Car Loans
Kamel discusses the impact of car loans on wealth accumulation, highlighting the opportunity cost of investing the average car payment over time. He emphasizes that investing the monthly car payment in the stock market could potentially result in millions of dollars in returns over the course of a career. Kamel encourages individuals to consider the long-term financial implications of car loans and prioritize saving and investing over unnecessary expenses.
Debt as a Thief
Kamel emphasizes that debt is a thief and that it has the potential to hinder wealth-building. He believes that debt takes away the ability to use one's income as a wealth-building tool. He encourages individuals to avoid taking on debt and to strive for a debt-free lifestyle. Kamel shares that he has never seen debt benefit people in the long run and that it often leads to financial stress and anxiety.
Home Ownership
Kamel shares that home ownership should be a goal for everyone, but it should only be pursued when financially ready. Kamel stresses the importance of being debt-free before considering buying a home and highlights the potential risks and burdens associated with mortgage debt.
Good Debt vs. Bad Debt
Kamel challenges the notion of good debt versus bad debt, stating that debt is always a burden. He shares examples of individuals who have faced financial challenges due to overleveraging and emphasizes the importance of being financially prepared before taking on any form of debt. Kamel believes that money magnifies who we are and that managing a large sum of money can be daunting if one has not managed smaller amounts effectively.
Lessons for His Daughter
Kamel reflects on the lessons he would leave for his daughter if he could only impart three truths to her. He emphasizes the importance of choosing hope over cynicism, kindness as a valuable currency, and the power of not caring about what others think. He believes that instilling these values in his daughter will help her navigate life with confidence, integrity, and a strong sense of identity.
Personal Reflections
Kamel shares his personal reflections on the impact of becoming a father and how it has shifted his perspective on money and life. He expresses a desire to raise his daughter in a home free from money stress and to instill in her the values of kindness, hope, and self-assurance. He acknowledges the challenges of balancing financial planning with being present in the moment and cherishing the time spent with his family.
Definition of Greatness
Kamel defines greatness as a relentless perseverance for excellence. He admires individuals who strive for personal growth and innovation, driven by a desire to achieve excellence in all aspects of their lives. He believes that greatness is not about competing with others but about continuously challenging oneself to reach new heights and uphold values of integrity and kindness.
