all right guys so three expenses I think
we should eliminate by 40. now this list
of expenses is for the middle class
group and that's just because I think
the majority of people want to live an
average good life not everybody wants to
have millions of dollars in their bank
account not everybody wants to fly
private so I think going over this list
for the middle class will be most
applicable right it'll cover the
majority of people now when I say
eliminate this can mean two things one
you can offset the expense with passive
income or you can just eliminate the
expense altogether right pay that
expense off and just never have it after
age 40. all right so let's jump into the
list number one the number one expense
that you should eliminate by age 40 is
your rent slash mortgage I think for the
middle class the mortgage expense is
their biggest expense so if they can get
rid of this by 40. I think this will put
them ahead of people that are just
taking out a 30-year mortgage and
they're paying that payment until
they're 70 or 80. now a lot of people
would say oh why would you take all that
money and dump it into a house so let's
just say the house costs three hundred
thousand what I'm not saying is that you
should write a check and just pay your
whole house off in one shot I'm saying
by age 40 you should have made enough
payments to pay off the house and that's
where creativity needs to come in you're
probably not gonna make enough money at
your nine to five to pay off your
mortgage at 40 years old so this is
going to require you to make additional
Investments maybe start up a side
business so that way you can accumulate
that additional cash to pay off that
mortgage early and I think right now the
average mortgage or the average rent
lies between sixteen hundred to twenty
five hundred dollars so just think about
it if you can have that money freed up
by 40. that's additional money that you
can use each month to invest save for an
emergency or use it for whatever you
like but you freed up that 16 to 2500 a
month and now you don't have to worry
about that rent payment to me this is
the biggest stressor for the middle
class they wake up every morning to go
to their nine to five to pay off their
rent on mortgage so if they can pay this
off by 40. I think one is just going to
relieve a lot of stress and then two
it's gonna put a lot of cash back in
their pocket or they can use it for many
other places typically people have their
mortgage or their rent payment until
they're 60 or 65 and it's just eating up
their Capital yes it's going to take you
some time to figure out a business
strategy or an investment to come up
with the additional Capital to be able
to pay off the mortgage by 40 and to
allocate that to vehicles that are going
to help you down the line all right so
number two the number two expense that
you should eliminate by 40 is all
Consumer Debt and mainly I'm talking
about credit card debt now I'm not
talking about the credit card debt that
you accumulate on a daily basis and that
you pay off at the end of the month
because typically if you pay your
balance for your credit cards at the end
of the month you're not accumulating any
interest I'm talking about the credit
card debt in which you bought some
furniture or you bought a big screen TV
or whatever the case may be be and
you're carrying that credit card debt
for months on in or years on in and
you're accumulating a bunch of Interest
I think at 40 this should all stop you
shouldn't be unless you're getting like
a promotion where you're getting one
year free interest and you're just
letting it sit on the credit card but I
think at age 40 and Beyond you should be
paying all your credit card debt at the
end of the month when your balance is
due and to be honest 40 is a generous
age that I'm giving for you to eliminate
all Consumer Debt that lasts over months
and years honestly I think by early 30s
35 you should not be accumulating
expenses like this where credit card
debt is just sitting and you're
accumulating all this interest because
as you move into that retirement phase
this is all going to catch up to you and
it's going to eat away from Capital that
you have saved up for medical expenses
other emergencies vacations it's going
to dip into all these other buckets and
it's going to make retiring a lot more
complicated than if you were to just
have eliminated this type of expense by
age four 40 and again I think 40 is a
safe age to eliminate these expenses but
it doesn't hurt you to eliminate these
expenses a lot earlier alright so the
third expense on the list that you
should eliminate by 40 is student loan
debt now specifically I'm talking about
student loan debt that's at 40 000 or
more and the reason I chose 40 000 or
more is because typically student loan
debt carries a smaller interest rate so
for student loan debt that's 40 000 or
lower yes you're going to be
accumulating interest but again student
loan debt is at a lower interest rate
and if you have to carry out a loan
amount of 40 000 or lower for a long
period of time I don't think it's going
to hurt you that much to pay that loan
off at a slower rate now the problem is
when you have 70 80 90 a hundred
thousand dollars in student loan debt
and you're letting all that interest
accumulate after your 40s I think if you
have such a high amount of student loan
debt even at a smaller interest rate
that could be really damaging in your
later years because with an amount like
a hundred thousand student loan debt
let's just say at a two percent rate you
can accumulate like ten thousand dollars
in interest over the years very easily
so that's something you guys need to be
very careful about if you did rack up
student loan debt to pay that off by 40
if you can because again that interest
is going to come back and bite you and
dip into the buckets that we talked
about earlier in your later years like
Medicaid or Medicare vacation buckets
your emergency savings and things like
that you do not want to deplete these
buckets in your later years where it's
not as easy to generate new streams of
income but yeah guys those are the three
expenses that I believe you should
eliminate by age 40. rent slash mortgage
long-term consumer credit debt and
student loan debt and if you can get rid
of those expenses earlier than age 40 I
think it would be even better for you
but yeah that's the video If you guys
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one take care
foreign
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