The Psychology of Money | How Your Mindset Drives Your Finances

I would borrow 1B at 0% and buy Brk-A for couple of years.

at 0% i'd borrow any amount.

yes i would take 0% loan, and keep the interest on it for sure lol!!

Great video, I would borrow the $1 billion at 0%.

Very good video. Somewhat apprehensive, but I would take the 0% loan.

For me, my biggest fear is poverty, so I tend to seek and take advantage of opportunities. We are the sum of our experiences, and so are our mindsets. I think money and finance are about the level of consciousness achieved through experiences, study, learning, vocation, and more.

Very informative but the billions $ thing was pretty silly. If you said million that would be more realistic

in retirement can i take my rmd from my 401k and put it into a a roth? Roth says earned income, is the rmd considered earned income.

I would take the money and spead it over 4,000 banks to ensure the billion is covered by the FDIC.

I would absolutely borrow that $1M for 3 or 5 years at 0%. Easy peasy to generate a return on it--and any return would be worth it.

Impressive job, Erin! l've transitioned to a career in construction, primarily in Japan and China. As a risk-tolerant investor focused on dividend yields, my wife and I have invested in the S&P 500 through my government TSP and her Fidelity 401(k).
We withdrew $270k from the S&P and invested with a Financial Planner, MonicaMary Strigle.
Until approximately 3 years ago, we were solely invested in the S&P after more than 30 years. I am retiring at the end of this month at 62, while my wife will retire next year at 60. Under Monica's guidance, I ventured into Bitcoin, Ethereum, Solana, and Cardano during 2022, yielding a 173% return in 2023. I anticipate further gains in 2024 through other speculative assets, including recently shorting the Chinese Index. Currently, we have $3.7 million in our tax-deferred savings. Sharing this for those seeking guidance during these challenging times.

0% guaranteed for 5 years, with no risk of the interest rate changing or the debt being recalled? And no debt payment until it matures? Then heck yes. Even if I park it into a 1% low yield savings account with simple interest for 1 year I'd be set for life.

I'm curious why it's a hard no for you. What do you envision being the risks? Why would this debt stress you out?

Time, I think time is the issue in this question. Would I take it, yes. But what would I do with it. Time? Without knowing when it has to be paid back, I have no idea what I would do with it. Otherwise why would I invest? I am assuming that my money will grow over “time”. Short term, sure GIC.

I would do the same as Graham.

I'm really conservative, but I would absolutely borrow that 1 billion dollars at zero percent.

I’m all in on the $1bil for 0%

borrow only $1bn? No way, but if it were $100bn, yup.🤣

I have and do flow thru all these mindsets

Unless there are delayed payment terms on the $1B, that is not a good idea. With a 10 year loan (120 monthly terms) you owe $8.3M per month which is $100M over a year. You would only get about $51M in interest (5% HYSA) in a single year minus taxes. So you would have to pay out significantly more than you would earn within 12 months. Which means, unless you have a spare $50M already, you are going to miss payments while the money is growing.

I have an investor mindset while keeping my expenses low, meaning I "should" be wealthy in the future by using compound interest to my advantage despite only having a modest income in the very hcol city of San Diego.

Yes!, I’ll borrow the Billion and invest it in a HYS.
Mostly an Investor Mindset

I wrongly guessed your topic was going to center on Morgan Housel book Titled “The Psychology of Money”
It’s worth a read for you if you have not already read it. Not sure how much time you have to read these days. Happy Belated Mother’s Day ETM.

PS, fantastic graphics!!!, love you in the screen while I can see the graphics!

Erin is right. She’s always right

I’ll take the money on condition I’ll have to payback over 10 to 20 year period. Or payback a lump sum in 10 years. Additionally, there’s no penalty for early payment of the entire amount.

I’m on your husband’s side on the billion $ question but my wife is on yours. Interesting. Here’s where I think the conundrum is. Over my life, I had a great fear of retiring with nothing and eating beanies and weenies out of a can during retirement. My wife and I have a couple of years before retirement at 65 (more if I still like my job) and if my numbers are right, we should retire with an income similar to the median income in our area. It’s not great and lower than now but with no debt and with the typical tax breaks we old-farts get, it should be enough to limit the beanies and weenies for dinner.

That said, sitting right next to the fear of not having enough is the fear of getting to retirement without experiencing many of the things that we won’t have the health to do later. My wife has already started backing off some of her hobbies because of health. Sure, that trip to Costa Rica we took when we turned 50 and the trip to Yellowstone in one year and the 10-day one to the southwest USA in other years (Maine was also a blast) probably stunted our retirement growth but they were done without debt and were experiences we may not have gotten were we to wait.

Just food for thought. You have a great channel and I hope it continues to get traction.

Very interesting video. I'm a mix of growth, saver, abundance and empowered. Also as a Christian I have another mindset that supercedes all of these. I believe God will always provide for my needs as I seek to follow and obey. This gives me peace and rest that no amount of saving, investing or financial security can provide.

Zero percent? Absolutely!

A great video. The majority of financial videos are on what to do, but I believe one will have to figure out where you sit on how you deal with money is also very important. If you have a fear full mind set, it would be very difficult to invest money in the equities verses some type of CD or annuity. On the other hand, you have a consumer mind set, your withdraw rates and initial nest egg would have to be larger.

BTW, I would take the money depending on the payment schedule back. If I had to pay it back in a lump sum after 5 years, sure I'll take it. If I had to pay a schedule monthly, I am not sure.

I'd divorce you if you didn't take a $1M loan at 0%

This video should be a mandatory pre-marital counseling lesson. I'll bet most arguments about money come down to conflicting money mindsets. For me, I'd say I've always had the investor mindset and to a lesser extent the abundance and growth mindsets in that order of emphasis.

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Yes to the $1 billion if I can pay it back early without consequences. I would keep it for a year or two, accruing interest in a bond, pay back the initial loan then play around investing or spending the interest. I wouldn't make as much but anything is better than nothing and I would feel more secure.

Us treasury bonds and Florida homestead make the question a nobrainer

Duh. Yes! you could buy an annuity with all the risk on the insurance company with 5 years guaranteed. Just a little knowledge leads to an absolute yes...

Erin, did you trip over the curling iron cord and whack your head? That's $2.6B over 20 years @ 5%!

I would take a billion at up to 4% interest. Worst case you might break about even. Over 5-10 years you can easily come out way ahead. This is exactly what large companies do, they borrow at 6-8% and seek to return 20% or more on this capital.

Veruka Salt: I want it now!

i hate debt... but i would 100% take the 1,000,000,000 dollar loan for 0% ...if u get a 4% bond for 10 years, .... .thats 40 million a year , dont touch the principle and pay it back after 10 years

Problem with a billion dollars is that it would be hard to park it in a CD and keep it FDIC insured. You would need I think 4000 CDs from different companies to stay FDIC insured. Maybe a combination of CDs and short term treasuries. It would be a little stressful but I would do that. Maybe only for a year though. Longer term I would probably hire someone to build a CD and treasury portfolio to manage.

Growth & Empowered

And YES! Half in going into a high yield savings and half in a CD without a second thought

Yes I would borrow it. Let it grow for those 5 years and pay it in full and move on with my newly rich life

How bout that psycho Dave Ramsey. He acts like a military seargent, yelling at people. Hes a grifter too!

sure

Hard yes…. In a heartbeat. You and Dave can guilt yourself to death but I’ll be smart and never work again. If something happens where Hysa and treasury defaults I won’t be worrying about someone trying to collect that mil or bil

I would borrow the $1B. :D

I'm really RICH spiritually. Nothing is more important then having a relationship with the Most High Jehovah God.... Bc having it now amd forever allows a person to be able to have peace of mind and a real inner peace and real inner Joy!! 😊😊😊

Assuming there are no conditions on how to use the money, I would absolutely take the $1B, purchase 5 year treasuries (non-zero coupon) to lock in the rate at 4-5% and minimize principal risk, pay back principal when the treasuries mature, and net well over $250M (assuming reinvesting interest payments)

of course on the 1 billion, i would invest what i would have earned in interest after 10 yrs at the start in an index fund for bigger gains without risk.

everybody has several of the mindsets you described. i had an abundance mindset early and while single as i knew i would be getting a larger salary after my training. then a scarcity mindset is a good thing to have especially as a solo provider and to live below your means with a saving, growth and investor mindset. finally an empowered mindset with a belief that i alone am responsible for good or bad of whatever my financial outcome will be and the confidence to make decisions to propel it in the proper direction.

yes I would borrow a million @ 0 percent interest.

I agree with your husband I invest it😊

I’d never borrow the money