Ep 106The 24-Year-Old Who Discovered the Money Secret Adults Still Don't Talk About
I used to be very cheap: learning to spend without guilt
I saved for it I thought about it and I wanted it and I earned it and I got it.
Dave Katz
The 24-Year-Old Who Discovered the Money Secret Adults Still Don't Talk About
with Dave Katz
The key is just intentionality.
More moments · 1
Try this · top 3
Quotes
“Never open your bank account apps, never open your credit card and just hope that everything works.”
“I think the problems come when there's no thought process as to why I'm spending it.”
“I saved for it I thought about it and I wanted it and I earned it and I got it.”
“Don't pursue the largest paycheck when you're 21 and finding your first job. Put a little thought into it.”
“Wealth without intention quickly leads to a life that may be rich in things but it's poor in meaning.”
Takeaways
- 1 Dave started a company at 23 and suddenly earned more than his friends. He didn't know how to feel about it, and his spending rose with his income without any plan.
- 2 Many young people earn more than any generation before them (starting salaries of $60-70K out of yeshiva), but no one teaches them how to spend.
- 3 Most people's instinct is to avoid looking at their accounts. Facing the numbers gave him a feeling of control for the first time.
- 4 Two people with the same salary can feel and act completely differently about money. Money is psychology.
- 5 Lifestyle creep is fine when it is planned. If you earn more you can spend more - just save more too.
- 6 For natural savers, learning to feel good about a planned purchase can matter as much as cutting back.
- 7 Most of his friends only make a budget two or three years into marriage. Couples earning $200-300K hit the same problems as kollel couples.
- 8 Your 20s are the time for risks and learning. Focus on one thing rather than seven; 'pursue your opportunities, not your dreams.'
- 9 The deeper problem is that young people don't know they need to learn about money. Parents and schools should start the conversation early, without making kids anxious.
- 10 The host cites Rav Chaim Kanievsky: not budgeting leads to jealousy of what others have.
- 11 Talking openly about money, even when it's uncomfortable, is where change starts.