Hey everyone. Scott Cunningham aka
@scottcbusiness, so today we’re gonna be talking about something a little
different we’re talking about the last 20 years and price changes that have
happened in the last 20 years and how this is extremely reflective for the
middle class today and why they are where they are and what we can learn
from this going forward so this is it and this just for the United States but
this is extremely reflective of of anyone in in North America or just you
know middle class in developed countries so what it what can we take from this
well right away we can see you know the average hourly earnings has gone up
seventy-five percent well that’s nice but it’s stayed pretty close in line
with you know the average cost for all items housing food and beverage but
there’s a little bit of a gap so there’s a little bit of a game right but the the
difference in in what child care costs medical care services hospital services
and post-secondary education all over a hundred percent increase in cost but
let’s look at what what what got cheaper right well first I guess what stayed the
same new cars and and that’s a trap in itself because when you buy a car it’s
instantly worth way less the second you drive it off a lot so that’s that’s a
whole trap in itself household furnishings
again those ninety-nine percent depreciation like you’re not gonna gain
value in on the couch you own and clothing again depreciation all of these
things for the most part are consumer goods that get they lose value over time
and I mean naturally you see a lot of these going down it’s not necessarily
because they’re losing value it’s because technology is improving
and we’re just improving our manufacturing and able to lower the cost
of things but if you buy any of these things you’ll never be able to make more
money off of them you’re only losing money so that that’s consumer goods
right all these things go down in value no matter what now housing usually can
go up I mean I mean it looks like it’s gone up for the most part right but I
mean you can have how real estate crashes you know housing market can
crash but the interesting thing here is that you know your wages are only maybe
like 10 to 15 percent cushion over the things that you generally need to buy to
get by like you need to live somewhere and you need food and stuff to stay
alive though you can rent instead of buying a house
which is a way that you’re gonna get around what I’m going to be talking
about here it’s what garyvee has been talking a lot about lately because it’s
extremely relevant and we’ll be talking about this by looking at this and
extracting insights from it because you can’t afford the other needs like
medical care post-secondary which I’m not a super big fan of but I understand
why it matters for STEM fields hospital child care a lot of things that are very
very very important and you can’t just neglect these things but what you can do
is you can distract yourself with the cheap cheap consumer goods that you can
so easily afford now so what do people do they go when they buy all these
consumer goods and they get they lose value so you decided to sell it later
while you’re just losing money anyways and this tiny little cushion of extra
earnings usually just ends up going down to all these things and then people
either can’t afford school or they stay in debt for a very long time they can’t
afford you know hospital services and you know everything else in Canada they
say yeah but we have free health care but it’s not free it’s taxpayer funded
and a lot of the times it’s pretty awful in my experience it’s not the greatest
so what can we take away from this why is this why does this matter well if you
can sacrifice on some of these consumer items you can take all like the little
cushion you have here plus if you can sacrifice on all these even though it’s
much more enticing because it’s so cheap comparatively if you can make sacrifices
here you can make investments and instead of just this steady increase
while these will exponentially become more expensive and eventually you just
won’t be able to afford them ever no matter what you invest so that all the
extra money can compound and make more money and you can make this line
continue as normal but then you’d have another line come in for your
investments which should exponentially become greater because a lot of wealthy
people they invest in assets they collect fine art they they have stocks
dividends whatever might be real estate they invest because they want money to
make them more money they’re not doing anything with that money they’re well
well here I guess I’ll break real real quick because I’m trying to keep this
under 10 minutes you can trade your time for money you can trade a skill for
money you can pay other people trade your
skills in time to create other like a full business which will generate even
more money and lastly you can make money work for you via investing we want to
take the extra cushion we have and try to sacrifice a little here
so that we can afford to have these needs and more in the future if you’re
in the middle class and you’re struggling or you’re young and you’re
thinking about all these decisions like where you’re gonna go this is important
I wish I wish I had this knowledge five years ago I’m blessed to have it now I’m
pretty early on in my life so I’m not really concerned but this is crucial
information to look at because it’s just gonna get worse plus it’s an indication
of where you might want to invest although I think universities and
colleges are gonna start to hit a turning point very soon if not already
you can see college textbooks have started to drop a little but you know
we’ll see we’ll see you could invest in hospital equipment or whatever it might
be and that’s clearly gonna be a good way to go but um I’m gonna be talking
about a lot of these things in another video talking about the difference
between being rich and being wealthy I think there’s a big big distinction and
it’ll be a really cool video to dive into that but essentially for this the
main takeaway is that if you’re doing a regular job a nine-to-five if you’re the
average middle-class person this is very reflective of the way that your life is
laid out and you need to be much more you need to have a much broader view of
what your finances are going to be based on these things and how you want to set
yourself up if you need to rent rent if you need to make sacrifices in certain
places for consumer items it’s worth it I’m really curious to hear what you guys
have to say about this I’m sure some people are going to criticize or say we
maybe we need the government to do something for us or whatever might be
I’m trying to present actionable things that maybe you could do today to improve
your future because that’s what I’m doing not because I am rich because I’m
like you looking for what I need to be doing and sharing the process with you
along the way and with that I’m Scott Cunningham aka @scottcbusiness, signing off