This TikTok Advice Will Actually Make You Broke
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You can't believe everything you see on the internet. Exhibit A. And may I present Exhibit B. Is that a British guy with a horse mask? No, whatever it is, just no. Now get that thing out of my sight! And today I present another one, Exhibit C. Because we're looking at some viral TikTok money advice that will actually leave you broke. So let's hop in. When you don't pay the debt collectors, which by the way, to the audience, you should never pay a debt collector because the debt doesn't belong to you.

It belongs to the debt collector. Let me explain this to you. If I owe Amex $1,000 and I say, I refuse to pay you, right? And they sell my debt to ABC Debt Collections Company, LLC. The debt doesn't belong to James Chang anymore. The debt belongs to ABC Debt Collectors. Why should I pay a debt that doesn't even belong to me anymore?

Most people get scared because debt collectors, if you don't pay, we're going to garnish your way. They get scared. No, it's against the fair debt collection practices that you don't have to pay debt collectors. Oh, wow. Oh, my gosh, guys. Let me go through this guy's logic with you to tell me if I'm the crazy one. So the company that you took out the debt with, they own the debt and then they sell it to the collection company. So the collection company owns the debt. So technically, you never had the debt, bro. It was never your debt.

It was all in your mind. It was like a Christopher Nolan movie. Okay, let's see the comments here just to make sure that I am sane. Barnacle, already a great start for a username. Bruh, I listened to this a while back. Yeah, I went from a 700 credit score to a 503 credit score. SMH face. I think that's what it's called. Good advice. Glad you took it. Commander Poopy Pants. All right.

Thought that was the bottom. We are only going further south, my friends. Said this. Just did this and now my car and house is gone. Also, is it Argon? Car and house Argon or is gone? Let me know in the comments if you're a grammar nerd. And Jacqui finally said this. Once I didn't pay the debt, but the debt collectors took me to court. I failed to show. Lost the case and the sheriff made sure the debt is paid. So... Okay. Okay.

Let's just go through some facts here. Just because your debt got sold doesn't mean it magically disappeared. You still legally owe the debt. It just changed hands. So debt collectors buy the rights to collect your debt, and legally, they can ask you to pay it. They do have to provide actual documentation of the debt and how much it was, the account numbers, all of that. But...

If all that tracks, you owe the debt. So the better option, don't run from debt collectors. Don't ghost them. Don't yell at them. Negotiate your debt with them in writing. And if you have the money to pay it, just pay it. You know, maybe try to negotiate the fees off, but you took the debt out. You signed the dotted line. Pay the freaking debt. Don't be a scumbag like this diamond neck tattoo idiot over here.

And this is key. Once you settle it, get that in writing that it will be paid in full and never give them access to your checking account. Do a money order, a cashier check, anything but giving them money directly from your account. Then move on and never end up in that situation again. And maybe get off TikTok and don't ever get neck tattoos, kids. You're not going to be Post Malone. There's only one. All right, my blood pressure's already up. So let's move on while we still can. I thought I knew money until I learned this.

The rich and the wealthy, they don't get a traditional mortgage like you and I do. And being a mortgage broker for years, I never learned this until just recently. It's baffling to me why it took me so long to figure this out. What people with assets and money, what they do is they don't get a mortgage. What they do is they take out a lien against their assets. They don't liquidate. They don't

take out their money from their portfolio, from their bank account and buy a house with cash. They take a lien, like a loan against their money, which is interest only. And what it does, it keeps building. It keeps compounding while they pay off their house. So they basically are making money to own their house. And not everyone can do this. Most people can't. You don't have a million, 2 million sitting in a portfolio. You can't do this. So

The way around that is to use a HELOC, which is a home equity line of credit instead of the mortgage to where you pay the interest just like the rich and the wealthy just pay the interest. And I can show you how. - Okay, before I fall asleep into the loving arms of, I assume, a Lambda Chi chapter president, let's go through what's going on here. I couldn't get past the North Face. I'm sorry, if I see a North Face vest, I run. I run away.

I don't know what it is. It's like stranger danger, but with tech bros. Oh my gosh. The good news is about this guy's advice. No one's going to make it through the video. They will literally pass out and never follow the advice. And this guy is, first of all, he's dead wrong that the rich take out HELOCs anytime they can because it's interest only. HELOCs have crazy rates and they don't do this. It sounds fancy, but it's really just financial gymnastics advice.

with risk as the main spotter here. So let's talk about the idea. You're making money on your investments while paying for your house. Sounds genius, except there's a massive gamble here. You're borrowing money at high rates against something volatile, which is your investments, and betting the market is going to behave long enough for your plan to work. So here's the deal. Markets don't care about your plans. They go up, they go down, they go sideways. And if your investments drop, you could get margin called and forced to cough up cash you weren't ready to lose.

So sure, if you're a bajillionaire, you can play these games. But for an average tech bro, I'm not buying it. Moving on. When I was in my early 20s, I used to think that the market was kind of like this and like this and like this and a little bit all over the place and no one knew what was going to happen.

Or worse, what a lot of people think is it just goes like this. You'll never go wrong if you just invest in real estate long term. And in reality, guys, the market goes like this. It's very, very predictable. It cycles. It does the same thing over and over and over again. These periods of the ups or the bull markets typically last seven to nine years. The one we're in right now is lasting an extra long time because of a whole bunch of fake money that was injected into the system.

but let it be known this part is coming and with that much more of a high that means we have that much more to hit bottom and the most important thing that i wish i knew in my early 20s is that these periods right here at the very bottom it typically takes two years for a market once it starts crashing to actually hit the bottom and if it's not abundantly clear where we're at right now is the beginning of the crashing

So if I was in my early 20s, I would be stockpiling cash, hoarding cash, not trying to invest right away, not trying to do a bunch of Airbnb arbitrage or passive income generation or just putting a whole bunch of money into stocks. That'd be ridiculous. There is a time for reaping and a time for sowing. This is the time to stockpile cash. This is the time to learn. Oh, boy. OK, I think he's about to pitch me on his course while shirtless. That's the worst combination. No one wants to see all.

Also, can you imagine watching this guy from afar making the worst sand art you've ever seen? Good job, bud. Keep it up. You're doing good. The market does like a big circle, but it doesn't go straight up and across. It kind of goes like a little wave. A wave in the water.

Okay, I like it, Picasso. Happy for you. So, he's partially right. The market does go through cycles, but trying to time the market is like only surfing when you're sure the wave will be perfect, which, spoiler, you'll miss most of the ride. Plus, the market has always recovered every single time. Absolutely.

After any kind of crash or dip, the average return over the long term is 10 to 12 percent in the U.S. stock market. And that includes all the downturns, the recessions, the pandemics, the wars, you name it. So actual wealthy people, they keep investing during the downturns. They don't try to time the market and stockpile for the crash to then buy. They know downturns are not something to be afraid of, but something to take advantage of because stocks are literally on sale.

So they put money in consistently time and time again, year after year, knowing the market's going to do this. And they're putting the same amount of money in every single month. Plus, if you're in your 20s, now is the time to invest. You've got time and compound interest on your side. So get rid of the debt, get the emergency fund in place so that you have margin to invest consistently for the rest of your life. So bottom line, time in the market beats timing the market.

You don't build wealth by stockpiling cash and waiting for the perfect moment. You build it by being consistent over time. And as you build wealth, you've got to protect it too. And that includes your digital footprint. And the best way to do that is by using Delete.me, a sponsor of today's video. You may not realize it, but your personal info is probably floating around hundreds of shady data broker sites that you've never even heard of. And that makes you and your family an easier target for phishing attacks, impersonation, and other types of fraud.

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All right, back to the digital action. Ooh, an old guy. If you want to be financially independent someday, it's called one, two homes in one car. What? The average American gets two cars in one home. Here's a good advice. Two homes in one car. You buy the second car after you've bought the second home. Wise use of your resources.

That's it? That's the entire video? That was scary. Like, I was legitimately scared. This guy is like giving Batman villain. Oh, I see what's going on here. He's old. To be fair, that man is a legend. That is Jim Rohn, self-made millionaire, motivational speaker, and author of a lot of the self-help books on your grandpa's bookshelf. If you've seen tweets from grandpa, it's from this guy. And get grandpa off Twitter. Nothing good's happening there. Except for the Elon Trump beef. That is...

Chef's kiss. Thank you, Internet. Oh, boy. A lot of people need two cars in today's world if you have, you know, two working people or even a stay-at-home spouse who needs to, you know, lug kids around during the day. So I don't think this is practical advice, but I get it. He's saying don't have a bunch of stuff going down in value. So to that, I say kudos to you, Mr. Roan. He's no longer with us. R.I.P., Mr. Roan.

Moving on. If I were starting over in my 20s and wanted to make $1 million in the next one to two years, here are the three things I would do immediately. Number one, I would buy an existing business with owner financing, and I would implement modern marketing and automation tactics. And yes, this is doable with little to no money. Start by going to BizBuySell or LoopNet.com. Number two...

I would leverage any credit or borrowing opportunities I had, and I would go all in on crypto research and trading. There's huge opportunity in crypto right now, especially if you're following new coin launches. Pro tip, become an expert airdrop hunter. There's just huge potential here. Number three, I would immerse myself in AI.

and become an expert in the field. From there, I would launch and test AI-generated art, digital products, or educational-based AI talking head content. Once I got some traction, I would work endlessly to maximize my eyeballs in revenue and engage with associated influencers to help. No...

Oh, bless you, Robert. Okay. I know Robert. He's a nice guy, a good guy, founder of Silly Bands. That's why he's like a bajillionaire.

Made all his money off the chillins. I bet he's the guy behind the gibbets and the crocs, too. Not a far stretch. Okay, the advice was dizzying, and while it could work for a guy like Robert, I don't know that a bank is loaning a kid in his 20s or some owner selling a business is going to loan a kid in his 20s a million dollars to take over a business. I just don't see that happening. And also, to become a millionaire in a year, just become an expert in AI and make a bunch of money off AI. What are you doing, you dimwits? Quit going to college.

Quit the beer pong and just become an expert in crypto and AI and make a billion dollars. It's not that hard. But all that being said, Robert does have a lot of nice things to say. I was on his show one time and we had a good time ripping up whole life insurance and telling people how much of a scam it is. So I know this guy to tell you that

He has good advice. I just don't know that I can get behind this one. Well, let's explain what he means by owner financing. This also could be known as seller financing. And it means the seller of a property or business provides the loan to the buyer instead of a traditional bank or lender. And that can easily end up shady, put you in a financial hole fast because the terms can be anything the seller wants. And the second thing he said about creditors

investing in crypto. Look at it this way. He wants you to use debt to trade in the most volatile, speculative market in the world. Way too much risk. It's going to be a no from me, dog. Way more people are going to end up broke than they are ending up like Robert. So if your goal is to be a millionaire, don't chase shortcuts like these. Most millionaires built wealth over 20 to 30 years. It's not going to happen in one or two. You're way more likely to fall on your face doing that than you are to build any real wealth.

So instead, here's what I would tell a 20-something who wants to be a millionaire. Live way below your means, get out of debt, every dollar of it, don't get into any more debt, and invest 15% of your income consistently into retirement. And then grow your income through your skills, not speculation. And avoid anyone who uses the words leverage and crypto in the same sentence. That frightens me. All right, we saved the best for last. This one comes from producer Alex, and he claims it's actually pretty good advice. We'll find out.

You could drop me in any city in North America with $20 in my pocket and I would be a millionaire in one month. And I'll tell you how. It's a little thing I like to call networking. I would go on LinkedIn and I would find all the richest guys nearby. And I would look at their photos and I would see which bars and restaurants they like to go to. And then I would go to one of those and I would wait until one of those really rich guys showed up. And I would start talking to him. And...

Then when he says that he likes to play GameCube in his free time to unwind, I would say, "Oh, do you ever play Mario Kart Double Dash?" And he would say, "Yeah, dude, but I just can't unlock the parade kart because I can't get gold in the All-Cup Tour on Mirror Mode." And I would say, "I will come to your house tonight and I will unlock it for you, but it's going to cost you $1 million." And he would say, "Yes, I have been trying to unlock this for 23 years."

And then I would pick Toad and Paratroopa in the Parawing cart.

And about 35 minutes later, I'm a millionaire. So I actually did it in one night. And it would take you so much longer. Honestly, you find the right millionaire who also has this problem. It's all about service. You know, you serve other people. They give you dollar bills with president faces on them. And that's what my man Mark over here is attempting to do. But it's a needle in a haystack to find millionaires who are out there actively playing GameCube. Actively.

You know what I mean? They gave it up to become a millionaire. You have to choose at some point in your life. It's either live with mom and rock the GameCube and get the paratrooper, or you become a millionaire. There are only two options in this life.

This is a tough decision. All right, I have hit my emotional and I think spiritual limit of bad financial advice from the internet. So I'm gonna go binge some Dave Ramsey greatest hits to cleanse my palate. But if you don't want the madness to stop, keep watching to see me react to more videos of broke people doing broke people things or click the link in the description below. And if you enjoyed this content or you just wanna make me smile, hit those like and subscribe buttons. Thanks for watching. I'll catch you next time.