Why People with the Same Income End Up Rich or Broke
Here's how two people making the same income could end up rich or broke. This is a video about the habits and mindset that can be the difference between ultimately ending up wealthy, or with nothing at all.
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Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!
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⏱️ Timestamps:
0:00 – Start Here
1:34 – Mistake #1: Lifestyle Inflation
3:27 – Mistake #2: Too Much Debt
4:52 – Mistake #3: Lack of Tracking
7:31 – Good Habit #1: Investing Early
9:03 – Good Habit #2: Paying Yourself First
9:56 – Good Habit #3: Focus on Assets
11:00 – Psychology Around Money
13:46 – Practical First Steps
This is one of my favorite videos I’ve made on the channel! I hope you enjoy it and make sure to hit subscribeeee
@@humphrey its a great comparison, and very eye opening!
Bc it’s Graham vs Humphrey and Humphrey wins
I really enjoyed the animations used to describe both avatars 🙌🏾
This video is a game changer! The way you break down the habits of the wealthy versus the broke is so eye-opening. Thank you for the practical tips and mindset shift – truly inspiring and actionable
Amazing video! I hope to produce content on My channel like this one day 🙏
I always love the Graham and Humphrey comparisons. I watch and absorb both creators and have each helped me out tremendously over the years.
hahaha yes I did it in good fun
This absolutely made me giggle @@humphrey
i found out the uncle i always thought was well off is $180,000 in credit card debt
Wow
That’s the Spirit!
Jesus Christ.
@@LazyDisciplined . . .loves you❤.
That’s $3,000 in monthly interest payments (assuming a 20% interest rate).
Love the psychology around money. At the end of the day if your expense line always follows your income dollar for dollar, you’ll never build wealth at any level. Sure, you’ll have a fancier lifestyle but your money won’t be working for you.
There are people who make twice as much money and they still don’t have money due to bad spending and bad money management
Graham and his sushi and iced coffee. 😂
Wow, I never realized how much of a difference lifestyle inflation and tracking expenses can make. Your examples with Graham and Humphrey really hit home. This content is gold for anyone wanting to take control of their finances!
Too expensive of a car or too large a house are going to drown out any decisions regarding coffee.
I was stunned when a doctor’s wife friend told me they still had over $200K in med school debt. They had a huge house, an Audi SUV, and their oldest was nearly grown and leaving to be a missionary for two years.
Doctors are notorious for being horrible in finances. The main reason is because its a stigma to look, and play the part of a Doctors life.
It should be a crime to gather so much wealth but not have payed anything for your students debt. Studies are the reason that they made so much money anyway, but they dont pay it and let the taxpayer pay it, that is a crime. I am not sure how it works in USA, but arent your student debts deducted from your salary? How is possible to not pay them when you make that much?
@@jimipetI think they were making payments all those years, but not paying it down aggressively. My best friend has her master’s in nursing, and her husband is a doctor, and they both busted it to pay off their loans within just a few years of earning their degrees. She was a travel nurse, and then when they got married just after he finished his residency, they moved to a rural area that needed doctors and was willing to help pay his loans. I think they’re so impressive!
@kristinanoall it’s gonna be harder to pay off those loans if they’re also paying tithing on their gross income
@@joelsegovia6971lmaooo doctors are so stupid hahahaha 😂 what clowns
I started making about 40k in 1993, then about 60k in 1998, then up to 80 to 120k up to 2016, and 180k in 2024. I’ve been living on 50% and saving / investing 25% for most of the last 32 years. I reached $1M net worth in 2016, $2M in 2022, and $3M in 2025. Likely I could stop adding to my investments and just coast but I will keep going until I reach age 60.
Congrats 🍾, you’ve remained disciplined.
Cool watching a live example of the compound interest.
Congrats on your financial savings!
Your salary numbers don’t make sense. You were earning significantly more early in your career when accounting for inflation.
@@accent11270 I’m a critical care nurse, and I took a weekend position somewhere around 2016 which paid more. I could get social security statement and make sure my #’s are right but my memory is decent so I think it is close enough. There was a bump in my pay in 2020 to about 150k also, due to the pandemic nursing demand followed by inflation in the next 2 to 3 years after that. I’m at the top of my field and I work where they have the greatest demand. I may not get increases after this as I’ve maxed out my hourly rate. I only have about 5 to 10 years before I retire though. It has struck me as odd that I am making almost as much as my nurse anesthetist friends which I didn’t think I’d be able to do.
@@accent11270 I adjusted some of the #’s, it is all based on my memory which I hope is close. I worked a lot of overtime and call, so my income was never just the base wage.
This Graham guy has got to get it together.
Hahahah hahaha hahahahahahahahahahjaa
For me I’ve learned to be able to save money when I started tracking monthly expenses. Don’t be scared to realize you’ve had bad spending habit. You can fix it. Agree with you it’s hard to keep money when you don’t know where money goes. Secondly try to pay off credit card debt every month. Make sure to make paying credit card debt, auto loan and mortgage in first priority than shopping other things. Slightly changing spending money habit in 3 months then when you are set you will be better debt payer, better money saver. You will feel so much relieved. I don’t have kids so it’s so much easier to save money.
Merciful heavens, I wish I’d had you around 20 years ago. That comment about mastering yourself is so true! It took a hard fall for me to learn all these incredibly valuable lessons….. I feel like your videos can help a lot of people avoid those mistakes!
So true. When it comes to successful financial decisions, you are your worst enemy. A lack of income is not the culprit.
This is a great video. I love the comparisons, no truer words. RL Example: my younger sister has always made more money than me ever since she had a full time job. However, she’s in $90k or more consumer debt. I’ve been debt free several years now, single mom on single income and still set to pay off my mortgage in a year or so. Good Money management and living within your means makes a world of difference.
The abundance vs scarcity discussion was something I needed to hear today. Appreciate the openness about discussing how your outlook has been tied to your father’s. It’s good to be reminded of our influences and break the cycle where we need to. As always, appreciate you!
I’ve heard of friends of friends with good incomes but live pay check to pay check, borrowing $20 every now and again from colleagues! You’ve explained so well why these people are always broke 😊
Dentist here. That statistic that 36% of people earning $200k+/year sounds about right among my colleagues.
I’ve found the biggest reason they are basically broke is their monthly subscriptions and memberships. “High tier” memberships like a golf club, expensive car loans, pools/maintenance easily drain them of around $40-60k/year. The other big one is they’re always eating/drinking out. It’s not uncommon for them to shell $400 on a weekend of food/drinks.
Sad to think such an earning potential is wasted.
Wow thanks for your insight.
The biggest reason we live pay check to pay check is spending. People buy too much stuff just to fill voids and to keep up with everyone else.
Having a $500 car loan does make a difference, but the housing prices can differ by $2000-$3000 in different areas even if we take out the 5% of most expensive places.
Someone making a $75k income in Omaha is indeed different from someone making a $75k income in Bay Area.
9:31 i have personal tip here, i have 3 bank accounts, 1st is salary where money is credited. From here i transfer money to a 2 accounts, one for daily expenses and the other for investments, and keep a bit as emergency in the salary account.