Connect with us

Personal Finance

How to work at McDonald’s and still become a millionaire

Published

2 years ago

on

Bernd Vogel | Stone | Getty Images

Brad Klontz was drawn to financial psychology after the tech bubble burst in the early 2000s.

Klontz had tried his hand at stock trading after seeing a friend earn more than $100,000 in one year. But he felt immense shame after the market crashed and his investments evaporated.

He set out to discover why he took such risks and how he could behave differently in the future.

Today, Klontz is a psychologist, a certified financial planner and an expert in behavioral finance. He is a member of the CNBC Financial Advisor Council and the CNBC Global Financial Wellness Advisory Board.

In his estimation, psychology is perhaps the biggest impediment to people’s financial success.

More from FA Playbook:

Here’s a look at other stories impacting the financial advisor business.

Klontz’s new book, “Start Thinking Rich: 21 Harsh Truths to Take You from Broke to Financial Freedom” — co-authored with entrepreneur and social media influencer Adrian Brambila — aims to break down the mental barriers that get in the way of financial freedom.

CNBC chatted with Klontz about these “harsh truths” and why he says people earning a McDonald’s salary can still become millionaires by tweaking their mindset.

The conversation has been edited and condensed for clarity.

‘It’s all about the psychology’

Greg Iacurci: Why is psychology important when it comes to personal finance?

Brad Klontz: The basics of personal finance are actually quite simple. Financial literacy has its place, but I think it’s mostly [about] psychology.

Here’s my argument for that: The average American, the two biggest problems we have is we spend more than we make, and we don’t save and invest for the future. And I’ve literally yet to meet an adult who doesn’t know that they shouldn’t do those two things. So, everybody knows it. Nobody stays broke because they don’t know the difference between a Roth IRA and a traditional IRA. That’s not the problem we have.

It’s not really about the lack of knowledge. I think it’s all about the psychology. 

GI: So how does people’s psychology tend to get in the way?

BK: The biggest impediment: money scripts. Most people aren’t aware of their beliefs around money. And there’s a whole process for discovering what those are. Part of it is looking at your financial flashpoints: these early experiences you have around money or that your parents have had, or your grandparents have had. People tend to repeat the pattern in their family, or they go to the extreme opposite. 

The difference between ‘broke’ and ‘poor’

GI: You write very early in the book that there’s a difference between being broke and being poor. Can you explain the difference? 

BK: We’re talking about a poor mindset.

Being broke means you have no money. I’ve been broke, my co-author was broke, our families have been broke, a lot of people have been broke. We differentiate between being broke, which is a temporary condition, hopefully, to a poor mindset, which will keep you broke forever.

It’s not really related to money, because I know people who make six figures and multiple six figures, and they have a poor mindset. We all know stories of people who win the lottery, or they win a big sports contract or music contract, and then all of a sudden [the money is] gone. Why is it gone? They have a poor mindset. That’s the distinction we make.

GI: Does this suggest that people, no matter their socioeconomic circumstances, can lift themselves out of poverty if they adopt a rich mindset?

BK: Yes.

GI: Is that one of your “harsh truths”?

BK: Yeah. We frame it in different ways based on the [book] chapter titles. For example, “It’s not your fault if you were born poor, but it is your fault if you die poor.” That’s a pretty harsh reality that we’re throwing in people’s face.  

Adopt a ‘rich’ vs. ‘poor’ mindset

GI: What is a rich mindset?

BK: It’s an approach to life and an approach to money.

Some of it goes against our natural wiring. There’s a future orientation. You have to have a vision of the future. A poor mindset [is] really focused on the here and now, not really thinking about the future. And if you don’t have a clear vision of your future, you’re not going to save, you’re not going to invest, you’re not going to live below your means.

A rich mindset puts an emphasis on owning their time versus owning a bunch of stuff. A poor mindset, as we describe it, [is] very willing to trade time for stuff.

GI: What do you mean by that?

BK: A poor mindset is like, I want this fancy car. And I’m very willing to work an extra 10 hours a week so I can drive that car around. And the problem with that is that mindset goes everywhere: “I’m gonna buy the biggest house I can get, I’m gonna get the nicest clothes I can get, a big watch.” And then people have no net worth. They’re not saving any net worth.

Accounting for the Human Factor

Meanwhile, a rich mindset is like: How can I own as much time as possible? You might think of that as retirement, where I don’t need to work anymore to fund my life. They have a future orientation, and they think, “Every dollar I get, I’m taking some of that money and I’m going to put it over here so that I can own my time and eventually have that money fund my entire life.”

One of the ‘most destructive beliefs about money’

GI: I thought this was a great line. You write: “The belief that rich people are big spenders could be one of the most destructive beliefs about money ever.”

BK: I’ve done research on this. In one study, we looked at a group of people who [each] had about $11 million in net worth, and we compared them to a group of people who [each] had about $500,000 in net worth. These people had almost 18 times more money. And what we found is they only spent twice as much, on their house, their vacation, their watch and their car.

They had the money to spend 18 times as much, right? The people who are the wealthiest, when it comes to money scripts [they] have money-vigilant money scripts, which is the belief that it’s important to save.

The ones who are the flashiest spenders [have] “money status beliefs.” They had lower income, lower net worth. They’re more likely to come from poorer homes. It’s like, “I’m gonna show the world I’ve made it.” But that keeps you broke.

And I had it, by the way. All these insults about this poor mindset, I had it all.

How to work at McDonald’s and be a millionaire

GI: So what is the No. 1 thing people can do to save themselves?

BK: The first part is embracing some of these harsh realities: Your political party is not going to save you. Your corporation doesn’t care about you. Your beliefs about money are keeping you poor.

These are all meant, in different ways, to just help you shift from an external locus of control to an internal locus of control: The outcomes I’ve been getting in my life are because of me. It’s because of what I did, what I didn’t do, what I didn’t know. It’s a difficult mindset to grasp.  

You need to wake up to the fact that it doesn’t matter who the president is in terms of your financial freedom. None of them are going to make you financially free. They’re not going to send you a check. Your company? They don’t want you to be financially free. The replacement cost for you is really high. Your teachers can’t teach you to do that. They can teach you history and English. But they’re not financially free themselves.

The bottom line is, you have to do this yourself.

Then the next question is, well, what am I supposed to do? And that’s where we want to get people, because that’s a much easier answer.

Bradley T. Klontz, Psy.D., CFP, is an expert in financial psychology, behavioral finance and financial planning.

Courtesy Bradley T. Klontz

GI: And what is the answer?

BK: The answer is really, really simple.

Here’s the rich mindset: $1 comes into your life; you are going to put a percentage of that towards your financial freedom before you do anything else.

You can work at McDonald’s your entire life and be a millionaire if you have that mindset.

Save 30% of your income — or get a roommate

GI: What is the percentage people should be aiming for?

BK: It just depends on how rich you want to be and how fast you want to be rich. That determines the percentage. You’ll hear personal finance experts say you should be saving and investing at least 10% of everything you make. I advocate for 30%; that’s what I shot for, just because I think it helps you get there faster.

And people are like, “Oh my gosh, 30%.” Well, it’s real easy before you get your first job if you have this mindset. It’s real tough if you’ve designed your entire life around 100% of your paycheck. That’s where you have to make cuts.

We have a chapter on cutting expenses. It’s called “Get a roommate, get on the bus, get sober, get bald, and get a side hustle or shut up about being poor.”

We [hear] this all the time: “I can’t afford to invest.” We’re calling bulls— on it. Yes, you can.

We looked at the average amount that Americans spend on rent, on cars, on going to the salon, and on alcohol. Two thousand dollars a month is average rent; if you have a roommate, it cuts it down to $1,000. Just that alone, if you invested the difference, in 25 years you’d have $1.3 million. Now, if you had three roommates, it would go all the way up to $2 million. Just think about that. You now are a multimillionaire just from that, doing nothing else. And by the way, that’s average market returns.

But then when you add in: Take the bus, stop drinking alcohol, shave your head? [That’s] $2.8 million in 25 years.

GI: If you do all those things?

BK: If you do all those things. That’s just one roommate, riding the bus, not drinking alcohol and not going to the salon — watch YouTube [or] get your friend to cut your hair. The richest people I know, this is the kind of stuff they do. And yeah, $2.8 million.

I would say to you all: That sounds terrible.

OK, so why don’t you just go ahead and invest 30% of every dollar you make? Then you don’t have to do any of that s—. If that’s your mindset, it’s impossible for you not to become a millionaire. Unless you do something stupid, like take your investments and do something crazy.

Related Topics:
Continue Reading

Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

Published

7 days ago

on

August 8, 2026

By

The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

Continue Reading

Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

Published

1 week ago

on

August 7, 2026

By

Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

Continue Reading

Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

Published

2 weeks ago

on

August 1, 2026

By

As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

Continue Reading

Trending