What Keeps 99% of People Broke | George Kamel - Money Expert & Top Ramsey Podcast Host

PostedApril 15, 2025

Here are the top 10 takeaways from George Kamel's discussion on the "Success Story" Podcast that reveal why most people struggle financially and how you can break free from the cycle of debt.

1. The education system promotes misleading financial paths

The traditional advice to "get good grades, study what you want, and your life will be amazing" often leads to financial struggles. George explains that this path is "paved with a bunch of lies" because many graduates end up with substantial student loan debt, credit card debt, and car payments that make achieving financial success extremely difficult.

This education-to-debt pipeline creates an immediate disadvantage for young adults. Instead of entering their careers with financial freedom, they begin with what George describes as "an 800-pound gorilla strapped on your back," making it nearly impossible to build wealth while constantly servicing debt.

2. The credit score system is designed to keep people broke

George describes how the financial system promotes credit scores as "the most paramount thing in your adult life," but this focus actually encourages harmful debt behavior. The system teaches people to open multiple credit cards, utilize rewards programs, and normalize debt as a lifestyle, while financial institutions profit enormously.

This credit-focused approach trains people to become comfortable with debt. As George puts it, "You just sort of swipe and swipe and swipe, and it trains your body to be okay with debt." The reality is that chasing a good credit score often leads to accumulating more debt than income, creating a negative financial spiral that's difficult to escape.

3. There is no such thing as "good debt"

One of the most controversial Ramsey principles is that all debt is harmful, even types commonly considered "good debt." George challenges the popular notion that certain debts like mortgages, student loans, or "strategic debt" are beneficial for building wealth.

The idea that accumulating debt is a path to a peaceful, non-stressful life is what George calls "a total myth." He shares his personal experience of living without a credit score and successfully renting apartments, cars, and even purchasing a home through manual underwriting. This demonstrates that the supposed benefits of maintaining debt are largely overblown.

4. The debt snowball method can eliminate debt quickly

George shares how he used the Ramsey plan to eliminate $40,000 of debt in just 18 months. The approach focuses on listing all debts, creating a budget, and systematically paying off debts using the "debt snowball" method - paying minimum payments on all debts while putting extra money toward the smallest debt first.

This method creates psychological wins as each debt is eliminated. George emphasizes that the key is willingness to make temporary sacrifices: "If you're just willing to make a small sacrifice for a short period of time, it will pay dividends for the rest of your life." His experience shows that debt freedom is achievable in a relatively short timeframe with focused effort.

5. Car payments are one of the biggest wealth killers

Among various predatory financial products, George identifies car payments as particularly damaging to middle-class wealth building. With average car payments now exceeding $700 monthly, this continuous expense prevents people from building savings and investments.

The justification that new cars are needed for reliability or safety is largely a myth. As George points out, "A 2003 Honda Accord is safer than some of the cars that are out there on the road today." The emotional and psychological justifications for expensive vehicles often mask simple desire rather than necessity, creating a significant obstacle to financial progress.

6. Creating margin is essential for financial progress

To make financial progress, George emphasizes the concept of "margin" - the gap between income and expenses. The formula for creating margin is simple: make more money or spend less, with George recommending both approaches simultaneously.

For spending less, he suggests evaluating subscriptions, implementing no-spend months, and reducing eating out. For making more, he recommends leveraging existing skills for freelance work, participating in the gig economy, or upgrading career skills. Creating sufficient margin allows for debt payoff and investment that wouldn't otherwise be possible.

George notes a concerning trend where social media creates unrealistic financial timelines and expectations. Young people now believe they're "losers" if they haven't accumulated a million dollars by age 25, creating unhealthy pressure and encouraging risky financial behavior.

This mindset leads people to overleveraging themselves in pursuit of arbitrary wealth goals. George's approach is to question "and then what?" when people state financial ambitions, revealing that many haven't thought beyond the number. He emphasizes that "money should not be the goal. Money is a tool to help you accomplish your goals."

8. Millionaires typically follow modest financial habits

Based on Ramsey Solutions' study of 10,000 millionaires, George shares that most millionaires don't display flashy lifestyles. They typically drive modest, used vehicles (often 4-year-old Toyotas or Hondas), pay off their mortgages rather than maintaining them for tax deductions, and are intentional with every dollar.

These millionaires aren't extreme cheapskates but are thoughtful about purchases. They save up for purchases rather than using credit, research to find the best deals, and aren't concerned with impressing others. George notes, "Frugal people just aren't concerned about what other people think. It's one of their superpowers."

9. Roth accounts offer significant retirement advantages

For building wealth, George strongly recommends Roth retirement accounts (Roth IRA, Roth 401k, etc.) over traditional retirement accounts. These accounts use after-tax money but grow tax-free and can be withdrawn tax-free in retirement.

The advantage is certainty about tax treatment. As George explains, "I know what the tax rates are now. I don't know what they'll be 20, 30 years from now." Additionally, Roth accounts don't have Required Minimum Distributions (RMDs), giving more control over retirement withdrawals and estate planning.

10. Character matters more than money for true success

Despite his focus on financial principles, George concludes that character ultimately matters more than money for true success. He emphasizes that being a person of integrity who is kind and generous with time, talents, and resources leads to a life without regrets.

Financial problems can make it harder to focus on character development. George suggests that resolving money issues removes obstacles to focusing on what truly matters in life. He believes that good character naturally leads to success: "Your character matters. That's what will carry you through life and as a byproduct, I think people find success."