Do This EVERY Time You Get Paid (Paycheck Routine)
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- Опубліковано 4 чер 2024
- Make sure to do this every time AFTER you get paid. This is a great paycheck budget routine, ritual and habit. It's what I did in the past to maximize the value of my money.
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00:00 Start Here
00:14 Step 1
02:18 Step 2
03:46 Step 3
05:46 Step 4
07:42 Step 5
08:14 Step 6
10:57 Step 7
12:09 Step 8
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All opinions expressed by Vincent Chan are solely Vincent Chan’s opinions. You should not treat any opinion expressed by Vincent Chan as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Vincent Chan’s opinions are based upon information he considers reliable, but does not warrant its completeness or accuracy, and it should not be relied upon as such. Vincent Chan is not under any obligation to update or correct any information provided. Vincent Chan’s statements and opinions are subject to change without notice.
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@@heavenbound7nah, Ramsey would tell you to save 1000 dollars then pay off every single debt not just the ones above 5%.
Our educational system should have these classes soon after adding & subtracting class.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Amber Dawn Brummit is a hot topic even among financial elitist . Just browse, you’d find her, thank me later.
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
I built up my emergency fund and was very happy with it, a good chunk of money, about 6 months of expenses. Then a family trip to Europe happened, but it's fine! I had budgeted for it. What I hadn't budgeted for was a tree behind my house to break and fall on my roof. New roof and hvac system wiped out a huge chunk of that. My friends thought I'd have to take a loan... but nah, I paid that off cash lol. Now to rebuild that emergency fund! I'm hoping to have it back up to 4 months by the end of this year. Just gotta save save save!
That emergency fund gave me so much peace of mind, that even though I was chilling in Barcelona when a tree fell on my house and broke a good chunk of my roof I was able to know that I could still enjoy my vacation, would be able to handle the financial strain, and get back to where I was sooner rather than later without taking on debt.
Build an emergency fund folks, it's the best
FACTS! Build it up until you die! It can NEVER be too big or too much. 😊 Life and Murphy are always around the corner 😮
I know Dave Ramsey gets a lot of hate but it's like he says, "An emergency fund turns a crisis into an inconvenience."
I didn’t build my emergency fund up enough. I had three incidents that wiped out my savings. My washer went out, hot water heater went out and fell thru a wall, and the motor went out on my 2004 Chevy Malibu. I was TRYING to wait one more year to get a vehicle. I did great with a good down payment and great interest rate. I paid cash for the washer and hot water heater. I’m starting over now. I’m giving myself 5 months to get back on track. It did feel good to have the money when I needed it! This time my goal is much larger.
So no insurance for your house?? Something doesn't add up here. I understand you may have insurance (Deductible) but still??? Please explain! :)
Not gonna give you an itemized bill unless you're willing to chip in bud lol@@markmanea302
The best thing and the simplest thing you could do is make sure you're investing $1000 into your brokerage or retirement account monthly. If you aren't able to, figure out how to come up with some extra cash. Your future self needs it.
Love this! Investing isn't as difficult as many think. It requires diligence, which people often lack. If you are starting out with a big chunk, that's where a financial advisor comes in handy.
Low six-figure income, no debt, nearing mortgage payoff ($400k property), age 43. Invested over 15x annual salary, amazed by focus on scraping by in retirement. Aim for surplus. My goal: retire at 55 with $5M. Unless the markets crash, these two points should align. I'm quite lucky to have started working with a financial advisor early.
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I don’t even make 1000 dollars a month dude. That’s completely unrealistic for a lot of people
For step 7. It is okay to not be maximizing productivity in every hour of your life.
Giving 100% of effort every single second would be one of the fastest way to burnout which would cost either physically, mentally or even financially down the line. Not min-maxing productivity every single second is totally okay, we humans do need breaks after all and sometimes doing the chores could be therapeutic
@@pramayudasaleh2172agree with this 100% I burned myself out on my side job. Instead of spreading work out I busted through it day after day and even though I still had work I started getting irritated at the job and bored of it. Had to take a step back and slow down now I enjoy it 2 to 3 times a week rather than 6 to 7
Exactly
Besides sometimes it’s therapeutic cleaning up your home.
No stress 😎
The point of the video is to be able to plan your finances in advance so that you don't have to be productive all the time...
True. I'm counting rest and relaxation as productivity. I can maximize that.
Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
Impressive can you share more info?
Credits to 'Carol Vivian Constable' she has a web presence, so you can simply
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
We have learnt in investing journey that you can't control the market but you have the power to control your actions in the market.
That's correct. At first, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of £550k, which is about 10 times more than I average on.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
@@MariaJoseSanhueza_ Rebecca Charlotte Craig is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
With rent pricing hikes.. essentially unrealistic to have a 30% rent base to income ratio.. unfortunately
Make more money🤷🏽♂️
Roommates, smaller house, buy instead of rent, move to a different part of town or city/country… or make more money… plenty of options
If you have over 30% rent you need a plan to get out of that situation that doesn’t involve a rent decrease in the area you are already in. It’s unsustainable because rents always go up. You either need to find a way to decrease your rent or increase your income in the next couple of years.
@@lukylevelThis has the same energy as "If you're homeless, then just buy a house." Well of course! Such brilliance, why didn't we think of that!?
Agreed. I’m doing the math and would need to make 93,000 a year to have my baseline at 30%. As a single mom of 3, housing like roommates etc aren’t as flexible. I think this is a great goal for some and I will strive for that but I may not be in a position to have the ideal ratios. Still very helpful info!
I’m 15 and I’m watching this video because, I want to learn how to be financially educated since it’s a essential life skill that I’ll have to use later on in life.
Who ordered a yappuchino
Well done! I am impressed at your maturity at such a young age! Would you mind if I suggested a few books for you to read? You can likely find them for free at the library. I believe they could potentially be very helpful to you in building skills conducive to your future success.
@@silverchairsg yes
@@silverchairsgfollowing for those books :P
@@silverchairsgi’d quite like to hear some too
Wish I knew this when I was younger. Trying to start at 60 is very hard. You are very smart young man
These days information is abundant. Don't worry it's never too late, today's a new day!
The fuck did you do for 60 yeads
@@shxco4176so rude, be more respectful with your elders
@@vicenteyanez671 hop off my jock old man!
@@shxco4176probably learned to spell.
While this provide an actual strategy on investment and how to make gains from your paycheck. After buying stocks for just over 10 years, i'm struggling to make gains presently. How do i adjust or revamp my $480,000 portfolio? or should i consider some defensive investments? Any idea?
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at the worth of your portfolio, you should consider financial advisory.
No harm intended, but many people dismiss the importance of advsors until their feelings get in the way. I looked for one profusely a few years ago because I desperately needed a big boost to get by as an investor. Fortunately, I found one who had fortitude. My cash reserve has increased from $450,000 to around $1.1 million as of right now.
@georgeh Who is your advsor please? if you don't mind me asking, I’ve been down a ton, I’m only holding on so I can recoup.
She's one "Amber Russell Bennett", she also maintains an online presence. Just make a simple search for her name online.
I just googled her and I'm really impressed with her credentials; I reached out to her, need all the assistance I can get. Also scheduled a caII.
This video only applies for well-established people with high paying jobs. Looks like I still need to think up my own unique formula to build wealth in difficult times while living with my parents and earning a crappy salary.
If you’re living with your parents it should be easy to save, regardless of your job. You have no outgoing on rent or mortgage so the biggest expense is not there
@@C63Bezthats the biggest ass assumption that ppl dont pay rent when living with their parents💀 better appreciate your parents if they'd let you live rent free
@@liateapot2313I just have to pay for the bell bill which is like $130 every month. That’s it for me the rest is just my stuff
@@liateapot2313 so you’re saying some people pay as much rent with their parents as they would on their own? Doubt it.
@@liateapot2313 If you pay rent to your parents it is way cheaper then a rental
The problem today is most people always think that, you only need a good job to get rich... These millionaires are operating on a whole other playbook that many don't know exists
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits, such as regularly setting aside money for sound investment...
That 6 month of expenses in savings is so important right now. I'm unable to save as much as I like due to inflation. Spending more to maintain.
cost of groceries alone is killing us, not to mention housing inflation
For step 4, TINY correction:
The avg. return stated for a long time was anywhere between 5-8%, during and after COVID people stated anywhere between 6-12%.
At 10%, it will take 7 point something years to double. Given the reversibility of percentages, at 7% per year it will take 10 point something years to double.
The two rules that are commonly used for this are the rule of 70 and the rule of 72. For finance related stuff, it is typical to use the rule of 72 which is to divide 72 by the rate as a whole number to get how many years it will take the principal to double at that rate. The rule of 70 is used outside of Finance and typical in Economics and is basically the same thing.
Some of this may be OVERSIMPLIFIED and SLIGHTLY and COMPLETELY UNNECESSARY to explain and very nit-picky, but as a kid it blew my mind to learn this so maybe another kid watching your video would love this explanation.
Cheers!
Actually, this is very valuable information! Thank you very much!
It is not safe to assume a 6-12% , most financial resources I'm aware of are projecting slower future growth, and a 4% safe withdrawal rate may be less safe
VC your channel has changed the course of my future. Thanks.
Nobody can predict the future. Don't thank him yet
How much money you got
10% of my income on groceries in Vancouver BC as well as 30% on rent is damn near impossible
Pretty true, rent is nearing 50% in Toronto 💀
I currently pay almost 66% of my income in rent in my State...I am hoping to move into a better apt that's $300 cheaper by the end of the month...
@@ashleybaxter8790good luck!
After the massive layoffs, I have defaulted on debts, my savings are lying waste to inflation and my portfolio losing gains everyday. It’s all leading to financial exhaustions and depression.
Having a job doesn't mean security rather join a business trade.
ensure you add value, everyone is replaceable. I am always making sure of this to ensure my own sanity and job security.
Big ups to everyone working effortlessly trying to earn a living while building wealth even after the massive layoffs. My wife and I we are both retired with over $2 million in net worth and all paid off debts. living smart and frugal with our money, made it possible for us this early, even till now we earn passively with our asset coach.
Adapt to a lifestyle, be thrifty, set a budget, save money and build more streams.
Impressive Joe ! having a great savings and more streams to earn makes life goal’s easier, I make most stock purchases when the market is in a confirmed uptrend or cheap cost, although most stocks I bought months ago which showed strong signs of doing well has greatly underperformed. It’s okay for me on the long run, however it’s a good time to add to existing holdings at follow -on opportunities.
Fine steps! you could also take advantage of some growth stocks at the moment, every pro is currently bagging some digital dips. For me, my coach margaret ann myatt the intelligent guide has been using every opportunity to ensure I benefit, well positioned as I’m also privy to improve.
I go shopping, when I get "extra" money. I buy extra stocks! I know how much I need for the different expenses and how much I can spend on food and how much on "fun". It is so much easier that way. I already paid any debt and have a nice size emergency fund. Now my focus is on future income.
I use your videos as inspiration. Keep them coming!
Yes! Every time when I want to buy an item I just invest in that company’s stocks instead.
Invest more into 401k. Trying to beat the market by yourself rarely works. Let a target date automated fund do all the work and you'll get better returns most of the time
@@lukas______ I don't live in the USA so 401k is not an option. As a Danish citizen I have an other form of retirement saving but I want to retire earlier so I invest in dividend stock that will provide me with income in my early retirement years and in my real retirement years. My automated funds will be my main income in my workless years before retirement
I was able to do this. It allowed me to build a 25k emergency fund, max 401k, and max hsa. I am also looking at maxing my roth IRA. I have no credit, school or car debt. My next goal is paying off my house by the end of 2024. (140k remaining @ 4% - 30 year mortgage)
Good job dude
Well done on everything, but I wouldn't be in any rush to pay off the house.
The 4% mortgage is still a sweet deal. A 30-year fixed-rate mortgage is something people in other countries would kill for. It allows you to pay off today's debt with tomorrow's dollars, making inflation work for you. Mortgage interest is still tax-deductible. If you pay it off, the only deduction left is the property tax. Paying off your mortgage means locking up your cash in your house instead of being easily accessible when you need it (home repairs, emergencies and so on).
So don't do it.
that's awesome my guy, I can't wait til I can say the same
Don’t buy things you don’t need.
Just photosynthesise your nutrients from the sun instead of buying food. It works for me.
@@dee23gamingfood is a need. So is shelter and water. Beyond that, it's up to social requirements, such as a vehicle and work clothes. Avoid the 600 PS5 if you can't even pay your bills.
I’m slowly but surely working on my 6 month emergency fund. :) This is such a good video!!!! It popped up on my recommended👏🏼
10% of income for food may only work on developed countries and privileged households.
The income versus cost of good ratio is very steep in most countries because income is low or tax is high (or both) while raw food is expensive.
10% means I can only spend 235 on food a month.... This feels impossible
@@kaylee132get a better job
Hey Vincent, your video come across to my algorithm time to time and I really enjoy your channel and tips on how to save money etc, I haven’t personally achieved my goal yet but by just watching your clips inspire me to move forward for better and quality life that’s ahead of me. Keep doing you and God bless!!😊
8:14 There are a couple of tax advantages for saving and investing in an after-tax brokerage account. 1) The stocks you invest in can appreciate over time and you owe no tax until you sell them and realize your gains. And if you wait a year before selling, your tax rate on those capital gains is much lower than your regular income tax rate. 2) If you invest in dividend stocks and hold them longer than a year, you can get qualified dividends which are also taxed at a much lower rate. Therefore you can get regular income without selling your stocks without paying a high income tax rate.
Your style of teaching is awesome because you say what should or shouldn’t be done then you give real examples. Please keep making videos 😊
He uses humor well too!
I love this channel. I did contract several times a house cleaning company. After all I did prefer to buy a Roomba and a Braava. It's just my favorite choice. It can clean when I want to and how many times I want to. They are already paid. So I can do whatever I want to with my time and my money. It's just a personal choice. I can be in the woods walking and send a command for Braava to clean the house. Then I come home and it's done. She works, me I enjoy life. It's really up to you to decide what you want to do with your life. Me I really don't see myself cleaning my house or my floor everyday. But I see Roomba and Braava doing it. Also they will never complain. People do. A bit too much for my taste.
Your style of teaching is awesome because you say what should or shouldn’t be done then you give real examples. Please keep making videos
Yes.. I do need that apartment with the indoor pool. I don't have it, but I do need it.
However, it does feel amazing not living paycheck to paycheck.
Pay yourself first. This is the most important rule.
Don't rush to give your money to others by spending it.
How is he not at a million subs yet?! This is great advice. My parents drilled most of this into me at a young age. Mostly mom who’s from another country so she was very meticulous about money lol! It wasn’t until later on that my Dad started teaching me investing because of his own realization on how his was working for him. I hope our younger generations can take this on. It’s really helped me to this point at 35.
Wow this was easy to follow, approachable, safe and didn’t make me feel overwhelmed. Easy follow!
23 yrs ago when I married I made my goal to retire into a life of leisure and charity work. Our finances became my personal hobby. Automating maxed 401k and Roth. Sure, this made our income super low but we found every free entertainment every weekend. Now we are so thankful, Automation was truly the key because the money was already gone from your paycheck for bills and saving so you could spend the rest freely. The emergency fund is still automated. Cause emergencies seem to get more expensive every year.
Im so happy i dont need to worry about this. Mad respect to you guys.
I just moved out of my paren'ts house so this video came at perfect timing, thanks Vin!
You're a genius. I have never seen your channel before and yet this is the 3rd video I've finished today, because your outro is so clever.
Thanks , I now understand a bit on IRA and taxes (I am from an ASEAN country with little to no access to investing with restrictions from every side). Please keep making these kinds of videos on financial education (real adulting).
This was an amazing video with heavy emphasis on amazing. Very educating as well as very insightful by step 7 I thought I was getting ready to hear a sales pitch maybe a sponsor but obviously I was wrong. Also a great transition to the next video , brilliant. Keep up the great work .
Why are you actually kind of goated? This is simple and really useful advice that anyone could use. Keep up the great work.
One of the best personal finance videos I've seen
I love the way you explain everything, I want to learn how to invest but i never know where to start or even understand it.
Who the heck watching this is living in an apartment with an indoor pool.
This is the most concise and helpful video I’ve seen on personal finance. You just got yourself a new subscriber.
i love how straight to it this video went
This is literally what I do already so I’m glad I’m on the right track 😏
This video answers an important question (ironically involving opportunity cost): do you set up the emergency fund first or pay off debt or start investing? If you don't make a lot of money, it's hard to do more than one at a time. The problem with the sequence presented here is some people have so much debt, they'll never be able to start investing.
good question. I specified high interest debt rather than just "regular" debts. you would prioritize paying off debts with an interest rate higher than your average expected return from the stock market (e.g. sp 500 avg return)
I LIKE getting money back at the end of the year on taxes. It's like found money, and I use it for things I couldn't afford otherwise, a nicer fridge than budgeting for, etc.
I do mental accounting and it works for me. I always over estimate my money after taxes, overestimate my expenses, don't factor in one-off or irregular income (such as the tax refund, goes straight into the emergency fund) into my mental income, and then whenever check my bank account there's always pleasantly more in it than I was expecting. I certainly get most people don't have the same self control though, so my method isn't for everyone.
honestly, I was lucky i had parents who taught me this, but I believe it should be taught in school too
10/10 on this video! I needed this!
This was great and straight to the point. Thank you! 👍
I am so glad the algorithm sent me here. That's some great advice, and a most informative video. Of course I had to subscribe. I did dollar cost averaging years back. I remember when I looked at the Fidelity account, I was happily surprised at the dollar amount. Used that to move south, and never started back up for some reason. I will now.
This is called kokaibo in the eastern world. A Japanese way of managing money
Awesome, thank you!
This was great and straight to the point. Thank you!
Love this video, thank you for the tips! I’m going to work on step 8.
This helped me a lot 😊
I appreciate your emphasis on automation to make managing finances less daunting. Could you share any personal experiences or stories that highlight the benefits of automating your financial tasks?
Absolutely right @dotpenji! Kudos!
Thanks for sharing these crucial steps for managing money effectively! This advice is golden. Prioritizing financial stability, paying off debts, and smart investing can truly transform one's financial future.
Saving money for emergencies, proper investing & budgeting or monitoring expenses are significant to achieve financial freedom. Being strategic in financial management is a wise move in securing the future. This insightful video is truly commendable!
Thank you for this helpful video!
I got money problems right now with a lot of bills. This changes my perspective! Great video!💯
Love how this is presented!
I’d like to know where I can find somebody to clean my house for $30 😂😂
I think your nephew can do it for $30! and a few chocolates
I will do
You can t do it yourself for $15. In 2 hours🥴
considering nobody's hiring right now i'll do it lmao
Problem with nephew ($30) vs yourself vs hiring out (more than $30) is... Your nephew will do a shit job.
Cleaning the house is not just "mopping" with a solution and just basically your typical janitor at public washrooms.
If you don't get the reference, in referring to using a solution to disinfect the floor but the shit that's on the floor stays on the floor.
And cleaners don't just do the floor or the washroom. They do the house, take many hours and charge a butt load.
Well, this is all assuming you actually have a side hustle that pays well and not mentally burnt out from your normal job.
I am so happy I am now debt free!!!!
Great video. You have a gift in explaining the material.
there are plenty of finance channels i like and i dont like. i usually choose the channel i watch based off of personal research the channel owner has done and what they say about that information. Like if they say i understand this based off of facts. Given these facts are correct and are easily obtainable through solid research. I also choose the channels i watch based on voice unfortunately. Some people just dont have a great voice even though they have good thoughts and knowledge about finance. It just makes it not as easily digestible for me to fully understand the concept being stated. I say this to also say, you have a great influencer voice and have very reliable and provable points and opinions on finances.
TLDR: vincent is a smart and educated person who people should definitely listen to. Always take a grain of salt with any information from the internet, but i feel the way Vincent presents his information is wise and trustworthy. Also some people dont have the voice to be public figure to speak and be an enjoyable listen. This guy has a good calm voice.
Some good points, but you are coming from a point of view that just isn't the general case. You approach this as someone who is well off, who has a high income and most people don't. I'm in the top 60-70% of people for my age, yet there isn't a chance I'd manage to get housing for anywhere close to 30% of my income - 50% is a realistic minimum making a bunch of sacrifices - got it down to 62% currently
I only spend on bills and sometimes on food. Saving the rest and in less than 8 months I already save $12k, I would had save $14k but, I need to also have fun lol.
Great video. I love to use the the motto "Pay yourself first." Your landlord get's your rent money, the big grocer gets your food budget, a big telecom company gets money for your phone and so on and people pay them every month like clockwork. Don't forget to pay yourself and put money to work investing and make it part of your routine!
Started doing most of these tactics last week when I got a new job, had to rewrite down any future payments since I forgot to account for union fees and taxes, this video is gonna help refine my methods and help me get out of debt :]
30% on rent lmfao
I was thinking the same thing. It is my full time job that covers rent. Florida is horrible!!!
Great video VC! Your explanations are very concise. I have a question, seeing that the 6 month worth of baseline expenses for the emergency fund comes before paying off the high interest debt, would it not be smart to consider a smaller emergency fund, say, one worth 2 or 3 months of baseline expenses then throwing the extra money at the debt and then after that building the emergency fund back to 6 months worth of baseline expenses then proceeding with step 4?
I think the idea of having of 6 months of baseline emergency of 6 months, is if you have to pay something immediately, like in this video a car accident, you would pay it with that money instead of a credit card and adding more debt and interest. So its better to have 6 months saved rather than starting early with paying the debt because you might get more debt in this way if you don't have an emergency money saved and you encounter an emergency.
Also when you see your bank account have money saved up for emergency you would feel at peace.
Another remark, you might not need to save 6 months of emergency if lets say your family/parents can lend you that money in case of emergency instead of using a credit card. This approach only works for certain relationships and culture, that's why its not recommended for the masses. In that case you can indeed put money more towards your debt and while building up your emergency fund.
Agree.
@@HanaTNT
You are correct! I didn’t save 6 months and THREE incidents wiped out my savings! I saved $6,000 and started paying on credit card debt. If I hadn’t started paying debt, I would STILL have a little savings left. It felt awesome to have that security. I’m working hard to get back on track. This time I’ll have a much larger emergency fund.
@@tamarar.4642 Good luck in reaching your goals! Living debt free is so freeing!
totally not a click bait UA-cam video titla
Great content, Vincent. Just found you on youtube. Im not bad at finances, but you're a gush of fresh air people need to hear
Would it not be smarter to pay off debt before building up an emergency fund? By putting money that you would have put toward an emergency fund towards the debt instead, you’re now lowering the interest every month and paying it off sooner, therefore lowering the amount of time paying that interest as well. And if it’s credit card debt you’re paying off, you can then just use that credit card for an emergency.
The main reason people are living paycheck to paycheck is because companies don’t give the same percentage of pay and mostly keep the profits.
So nothing is the person's fault? It's all external circumstances? I doubt that very very much
@@TalkingMoneyWithNozi so I don’t think we are talking about the same thing. It seems like you’re talking about individuals. I’m talking about why most Americans have less buying power than past generations.
@@Luis-qm2boI’d argue it’s the central banks that have inflated our currency vastly more than a cabal of corporations could.
Shoulda went to college 😂 don't complain about your future when you were partying with the homies 😅😅😅😅😅😅
@@danielenriquez3457 personally I don't like to party. College is very unaffordable for many people each year it gets worse their are grants but the likely hood is that you have to sacrifice living to go to work and go to school. I think it's very important to complain to speak your concerns especially if it's justified. Anyway have a great day 🤟🏽
Establishing a solid paycheck routine is paramount for financial stability. From budgeting to saving and investing, each step plays a crucial role. However, many individuals face challenges in crafting an effective routine, often leading to financial stress. Introducing the idea of having a financial advisor can significantly enhance the efficiency of this process.
I think it was very smart how you enticed me to watch the next video by correlating the value of the next video to the value of this one 👍🏿
Love this message! My goal is to retire at age 50, I'm a physician but I don't spend like one, though I do focus on experiences such as eating out and traveling and saving and investing the rest. Reading "Die With Zero" by Bill Perkins really changed my perspective on focusing on splitting my life into time buckets and retiring early.
My question is: you say the second step is to get an emergency fund but that obviously is counterintuitive with the principals you stated in the investment section. Should I be working towards my emergency fund and fully committing to investing at the same time? Or should I complete my emergency fund first before I start investing? Personally, the idea of already having an emergency fund lined up before investing is more attractive to me just because it would make me feel more safe with investing but I am also financially illiterate.
EFUND first before making investing. Its a no touch fund only to be used when all hell breaks lose
Low risk investments could work as a semi-stable emergency fund. The money is still there and accessible. If it loses some% in a year it's no biggie, in the end it's still money not in your spendings account and is untouched. If an emergency arises you withdraw. If there is no emergency, you let your money marinate in some ETF investment.
In my opinion, these two can be merged together, as the losses in low risk investment market is basically inflation loss on cash. Your investments can be your emergency fund at the start, it will accelerate both in a no-emergency scenario, and once the opportunity is there you can always fully stack your emergency fund with a combination of cash and withdrawing investments, and then continue as planned.
for me, absolutely build the emergency fund first. likely it may take about a year. my tip is to put it in a higher interest earning savings account and making sure you meet the requirements for the maximum rate
Dave Ramsey's program spells it out more clearly:
1.) Save $1000 emergency fund.
2.) Pay off all consumer debt. (CC's, student loans, car payments)
3.) Save for 3-6 months of expenses.
4.) Begin investing 15% of income into Roth IRA and pre-tax retirement funds. (Do not invest until steps 1-3 are accomplished)
5.) Save up for college expenses for your children if you have kids.
6.) Pay off your house early.
7.) Build wealth and give back through charitable causes.
Couldn’t agree more on understanding your financial baseline! Too many people don’t know what their baseline is. Keeping up with the Joneses is such a huge problem in society. Thx for sharing! Great video.
Great videos! The linking from one to another is an amazing idea!
BUT VINCENT! I need my free range pasture raised gluten free non-GMO grass fed paraben free avocados! They're essentials!
😂
lol
Should I pay off my credit card debt or focus on my emergency fund ? Which should be first
That with the higher interest. Debt stellt your Money. E- Fund could you biuld in the same time with little steps
This is exactly aligned with what Ramit says in his book. Let’s go people 💪
I prepared aggressively before retirement by putting aside full 401K contributions and investing savings and building an emergency and annual expenses fund (taxes and insurance). I paid off my car and mortgage, and cut expenses even further (not worth sharing most won’t do what I did). When full social security hit (70), I was able live (conservatively) on it with a margin to save and do a bit more. I still work part time (10 to 20 hours a week), and 35% goes to a new 401K that is matched. I enjoy what I do, plus it’s from home. When people learn I work, they feel sorry for me. Ha!
I thought this was all being an adult but people shock me how clueless they are with personal finance. Doing this is simple as a single person. Getting a spouse to have the same mindset is another story
Bingo
I’m 21 living with my parents still. I’ve progressively increased my income from $7k in 2020 to $64k in 2023. It may seem like I’m doing amazing financially, but my $1200/mo car expenses keep me from being able to buy a house. I barely decided to start cutting unnecessary spending and aiming to save $1000/mo. I already have $1100 in my savings account and with enough money to cover my necessities for the next two weeks in my checking acc, until I get my next paycheck. Right now I’m considering saving that amount for either an emergency fund or a house. Regarding the house I already have $25k in my 401k which I plan to use for that and a couple thousand invested in some brokerage accounts. And even still, I’m living paycheck to paycheck💀
Get rid of that 1200/mo car expense.
@@OREOGORILLA I got like $10k negative equity on my car💀I can’t get rid of it any time soon and I just got it like around 6mo ago prbbly. Dumbass decisions but I still save more money on gas compared to the truck I had before
I wish this video was released sooner but been fl doing this for about two months so far so good 😇
mortgage under 30% is mad 😂
Murphy's law! So real, it's so important to have a sizeable emergency fund that covers at least 6 months of expenses
The only things I have to do is investments, pay off high interest loans, and reopen my other savings account. I didn’t know that my banking app had a spend tracker so, when I’m not sleepy eyed, I’ll set it up with this upcoming check in mind. I’m going into 2024 and beyond money smart!
This video came to me by mistake in the timeline , im at minute 1:40 , im already thankful that someone created this
Thanks a lot buddy
Great, informative video! Motivates me to keep myself on track. I'm in a better financial position than when I was making $35,000 less.
I mean...if you're making 35k more I would assume you're doing better lmao
@@pzrosSpending less now than when I made way less money. Lifestyle creep is a thing!
@@pzrossame lol
For step 8, if you're been wise and responsible with your money, why not use 5% cashback credit cards for each category?
This would be bad for the vast majority of Americans. I get it, those rewards can be awesome if you leverage them for your benefit. Caleb Hammer has had 0 credit card people on his show so far. That's not to say it can't work, but I think it's more nuanced than giving people the tools. If the average person lived within their means and had good self control then yeah I'd see your point, but for the average person clicking a UA-cam video it could be the difference between a little debt and too much debt to climb out of
Thank You For this Profound Words. of Knowledge.. Blessings and Love from South Africa Amen 🙏 ❤️
This was a very good video, I'm only 16, and my baseline monthly expenses are under $400, i have a truck, and insurance on that, and a gym membership. and i got a great job so I'm way under the percentage, I don't have a good emergency fund though. i have to work on that.. i watched this video because typical teen fashion, i was getting paid more money than id ever thought i would at this age, and then next time, i didn't know where the last paycheck went... so i put together a monthly budget. Thank you!
I need to get better at my budgeting. I will say one thing that I am happy about: unlike everyone at my job, I don't waste money every morning on an expensive Starbucks coffee I can make at home.
With rent at 30% of income, is this pre or post tax income? If post tax this will be difficult for the vast majority to achieve - especially with a family (additional bedrooms)
Only 30% more like 60%-70%
Excellent video with great finance tips.
Good financial info for beginners, loved it.
Housing