I’m a financial advisor and this is great to see. I always say it doesn’t matter where you start. If you have the right mentality you will get there. Best of luck!
the fact that that is so normal for you guys in the us to have 6 figure debt, and its even celebratd being debt free is mind blowing to me. i never been in debt and had a net worth of 5k when i was 20. now at 24 that is way more
Great job with the transparency! With all the financial UA-camrs I’m sure a lot of people watching them might feel hopeless if they don’t have $100,000 in their first 2 years of working!
@@sandraonabudget This was really interesting to hear about, but as someone living in germany i cant imagine having to take out to so much debt just to study or go to school. I am 18 currently and my semester fees are 200 euros ( roughly 190 dollars). I dont think i would mentally be able to deal with that amount of debt. Respect to you for having such a concise plan to pay of your debt. The one thing i still wanted to know is how high or low the intrest on your student loans are... Because i dont really know what kind of rates banks take for this in the United states.
Thank you so much for the transparency! I see so many videos of people who are worth over 300K and over at the age of 6 or something and its refreshing to be reminded that student debt right out of college is normal.
I did get scholarships for undergrad. And if I went to trade school I’d hate my job. I have a doctorate degree that’s necessary to do what I do and I love going to work. I agree that student loans are not acceptable, the pressure to go to college is also not necessary and the price of tuition is disgusting, but saying “get a rich uncle to pay for it” is gross and not helpful.
@@fishandbike please stop advising trade schools! There are a LOT of tradesmen in my family. You aren't making 60k-70k a year until you are a couple of years into your job unless you live in one of the big expensive cities. They are also extremely brutal on your body. School does still have a good ROI if you do it the smart way. There isn't money in trades unless you have the money to start your own business and then 90% of businesses fail... Or you have 20 years of experience. At that point you can find good money just about anywhere.
@@Nonsense116yeah this not to be insensitive but people forget similar modeling to it’s not just about competitiveness over saturation and large starting salaries . Like modeling the trades will wear the body and soul til someone younger can come in and do it better and faster .
Just the fact that you're paying attention and have a plan in place with long term goals puts you way ahead of the pack. I'm sure your channel will help inspire many other young adults. Best of luck on your journey!
I am also an OT! $109,000 in student loans. I've been working as an OT for 2 years now, and I also had the goal of being net worth neutral by 30. I've been super aggressively saving, and now I'm on track to be net worth neutral in 4 months- just in time for my 29th birthday! Keep up the great work- the net worth tracking is super motivating. I use the Money with Katie wealth planner every month and I highly recommend.
Great video! You're significantly ahead of where I was at 25. When I graduated law school, my net worth was something like -180k. At 30 I paid off my student loans, and now at 35 my net worth is over $1 million. Just keep at it. I would throw some of those extra savings (outside of the car fund) on the student loans to really get going on that, but everyone has different risk preferences and it sounds like you're set up for success!
I’m 24 and my net worth is a bit over 4K. You’re on track to successfully. I got a paid BS through the military, I own a condo with a mortgage in California that I bought, and a decent paying job where I’m able to save half my income. My parents never taught me money other than pointing at a homeless person and tell me “you don’t want to be like that guy”. One advice I can suggest is don’t buy stupid stuff and save save save. Also don’t believe in girl math.
Great insightful video, Sandra! I'm 24 (turning 25) next year and spent the last few years learning about investing, savings, etc. Sadly, there was a death in my family that put a stop to my rather aggressive savings/investing approach (I was trying to reach FIRE, but that isn't possible anymore). I am still finding my way with money currently, but like you; I also enjoy having multiple savings accounts so I can visualize what I have and where it is. It's nice to see people share the same mindset, although I used to dump all my money into one savings account when I was much younger. Funny enough, I ALSO have a 14 year old car! Things aligned this year and I decided to get it for a relatively cheap price, although I wish I hadn't. I think biking and public transit (like I had been doing for several years already) was a much healthier and cost effective way to reach both health goals (since I was biking), but also investing and savings goals. I'm paying about $400 a month on insurance (because, Canada is crap lol) and I'd rather be using that money to fund my investments. -_- Butttt, the convenience and leisure of owning a car is so damn worth it!! Also, although I am super self aware of this, I noticed that ever since getting a car my habits and lifestyle has changed - especially with money! I find myself splurging a bit more. I guess it's not totally a bad idea, as I'm still saving, investing, etc., but I think I should have put more thought into my decision with getting a car. Thankfully, no debt! Except for the usual weekly credit card "debt", which I leverage to assist with building up my credit score. No credit score issues (anymore), but I got unlucky a few years back and it impacted my credit horribly for three years. I lived, and my gosh, did I learn! Anyway, oversharing now lol. Great savings, I love how you categorize them. I wish my bank would allow me to do that! But Canadian banks don't seem that intuitive. Great video, you've earned yourself a subscriber!
Also, I know this may sound like a silly question, but have you considered using that 10k from your emergency fund to help pay off that debt you have? I think it's a good idea. Of course having an emergency fund is essential to reaching financial stability, but since you are already in debt, it may be a good idea to use that 10k to your advantage!
Welcome! Isn’t it funny how a relatively small change (ie getting a car) can have so many rippling effects? We moved a little further from town and the opposite happened to me- it was harder to go splurge on a little treat at the store because it takes 10 minutes to drive there so I don’t do it lol It’s so interesting to me to see what other people value! Thanks for sharing!
@ not silly at all because I’ve thought about it, but if I did have an emergency happen I would just have to go into more debt, so I’ll keep it for now! It would only shave a few months of payments off, so I’d rather have the financial security while I pay off the debt than risk needing it and not having it!
@@sandraonabudget Hey - thanks for the reply! Smart move there, makes sense that it's harder to splurge. That will hopefully help you maximize getting rid of the school debt! And true, after posting my question, I quickly realized that it would only take off a few months worth, so it definitely makes a lot more sense to keep the fund in case of a real emergency. Smart move there as well! Thanks again for the reply, and best of luck on your journey! I love when people are transparent about their money and such! It's always cool to see.
We all have our crosses to bear. Since you got a plan and an ,,interesting“ structure, you surely will be able to hit you goal as long as you stay consistent!! Thanks for the transparency!
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
@@viviancarolgioao 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?
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Keep at it, I really wish I woulda hit it hard at 25, thankfully I managed to only have 15k student loans and paid them off within 2.5 years, but I didn’t even think of investing until 35.
Awesome work! That’s a huge accomplishment! Since my page is all about transparency, and I’d hate for some one to read this and think you did all of that on minimum wage, would you mind sharing what your salary was/is to get you there?
@ Of course! My first year out of school, my salary was 125K in a LCOL midwest area. Second year was in a HCOL area on the east cost and I made 145K. Third year I bumped the income up to 200K by working 6 days a week and traveling to different offices. Fourth year 240K through negotiations and working just under 6 days / week. Fifth year I had a child and my wife stayed home from work (she has always made between 35-40k), I slowed down to a standard 5 days a week and still made about 240K (negotiations paying off). I am in year six and projected to make about 245K but I am no longer picking up a ton of shifts and am traveling for leisure far more frequently. I did most of the hard work in years 2-4 where I spent about 20% of my income and invested the rest. I bought a home in year 4 which has helped grow my NW. Negotiating income added about 60K to my income this year but that’s half the story. It added income to years 4 and 5 that I was able to invest and those dollars are compounding quickly.
My long response is gone 😭 Do you have an email I can send full details to? You can use it as a data point for future purposes if you need to. It’s kind of a crazy journey.
I actually subscribed because of the honesty... very refreshing because as you said everywhere else people seem to be doing so well you start doubting yourself and your capacities.
Nice video. The way you spun a negative net worth into a positive is such an important mindset to have and shows that you're going to be successful. Best of luck
i always feel like im behind than i see how much student loan debt is because none of my friends ever tell me how much school costed being a guy who went to trade school seeing you talk openly about your finances gave me a clear perspective on that life is a journey and not a race no ones going anywhere its all in your head. being smart about your finances is super important especially at an early age. buying a home feels so foreign with the amount people are asking. being 26 i realize im doing amazing especially when everyone is just pretending to look rich than actually be rich. and someone who loves cars seeing you say that you'd rather buy another used car over a brand new one is something few people can do because they want to uphold an image i drive a 11 year old truck and im going to drive it till it dies
Glad I was able to help with your perspective! I sometimes feel guilty about my debt, but then I hear about my friends who hate their jobs and realize I may have paid a little more, but I LOVE getting to show up to work and have an impact on peoples lives. I’m totally with you- it’s a journey and I think trying to keep up with the next cool things can make that journey a lot more financially stressful. I just hope I can share my little journey and make people realize life is a lot more fun when you’re spending money on stuff you care about and that most of us aren’t millionaires!
@@sandraonabudget everyone grows at a different pace and everyone's end goal is different. I'm a licensed diesel mechanic and i spent most of my apprenticeship hating my job mostly because of work culture but I'm now very fortunate to be working where i actually like showing up. its all about determination and seeing your end goal to keep you motivated. i lost everything i had 2 years ago and i have doubled what i lost. financial literacy is super important.
Newly subscribed, I've been watching Dave Ramsey and I'm happy to come across your channel. It's like watching someone as they step by step walk through the process live.. fully here for it. I'm going to be able to say I knew Sandra before she became a millionaire 😏
Ramsey is an out of touch boomer who has no idea what it's like for a GenZ person today. Ramsey started investing back in the 70s when literally everything cheap. He's only been successful because he was in the right place at the right time.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
Just wanted to say, ‘Carol Vivian Constable’, my CFA, is the real deal in his field. Dig deeper into her background; she's got years of experience and is a goldmine for anyone diving into the financial jungle!
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
This is a great video. I must say, finding a good partner/spouse is very important as well. My wife and I went from cheap to now frugal. I am 30, she is 27. We just passed 600k net worth. paying off student loan and first 100k in retirement was the key. Of course getting lucky with the housing market as well. We are still planning on paying off the house in 2 years even the rate is 2.75%. People hate on Ramsey, saying he's only for those who can't control finances. For us, he's been more than good. His advice provides peace and consistency in life.
What's the rationale over paying off a 2.75% mortgage rate when you can still lock in a 4%+ arbitrage in CDs... Sure there's piece of mind, but there's no way you couldn't just liquidate assets if push came to shove, so the fear could be irrational. My main gripe with Dave Ramsey is that he assumes all of his callers have zero discipline and preaches the no debt rule although it's not always ideal. There is opportunity risk in being too conservative.
Your primary residence is not an asset you can liquidate because you’ll always need somewhere to live. The math maths with investing over debt payoff- but there’s also a lot to be said for owing nothing. As a working class citizen being debt free (including a mortgage) can buy freedom faster than investing. The amount of money you’d need to have invested to afford living expenses and a mortgage comfortably is a lot less than the amount to just pay off the debt in most cases- so you can buy freedom faster by paying off the debt. It’s important to be educated, so it’s good to bring up so that people know their options, but people value different things and infinite money might not be one them
@@sandraonabudget The biggest factor in investment success is time. Anything that compromises your time in the market delays or maybe even derails your chance of reaching financial freedom. It's not an "everyone has different values" issue. Every single one of us is facing a day where we either can't work, don't want to work, or no one wants our work and we have to prepare for it. You can't make up for lost investing time.
Nice keep going! You're young so you have time on your side. It's great that you're so into your finances at such a young age. I wish I were more into when I was in my 20s.
There are only 3 rules in life. 1. Your income always needs to be higher than your spending every month (at least most of the months). 2. You need to beat the inflation (usually around 2% yearly). 3. Dont buy an house that is out of your reach.
Beating the inflation at all costs is total bs, if there's inflation of 20%, trying to beat it no matter what will just push you into risky decisions. Yes, you need to beat it in the long run, but not year-to-year
Well, keep it up. I appreciated the transparency perspective. It's all important. You can't not do the 401K because then you lose the time value of money over time, and you can't ignore the student loan. Decent all around strategy.
great video! appreciate you being so transparent and spreading positivity to pay off debt. Looking forward to following your journey and seeing you succeed :)
I'm in the same financial situation as you, but a little further down the road and I can say without a doubt that you're on the right track. I started off with about 170K of student loan debt 2 and a half years ago, and now that I just turned 29, my debt is now down to 60K which I'll likely be paying off in full soon as my HYSA interest is now lower than my loan interest. Aggressively paying it down has 2 major benefits, the first being the obvious: less debt. The second is that once the debt is gone (depending on how aggressive you were). you'll essentially have an entire additional income of cash flow (think what an extra 50K a year will do for you). All this is to say, good job and good luck! I started getting my full income a little later than you, so I'm hovering around 80K, but 100K net worth in 5 years is absolutely doable!
This is the first video of yours I’ve come across and I’m only a minute in but I’m already hooked because we have so much in common, I’m also 25 and a PT who works closely with OTs and just graduated this year! Can’t wait to see what your channel has to offer ☺️
YES to feeling behind just starting to work now! a lot of my friends also went to grad school but I feel like most of the finance creators I watch started earning at 21/22 and the comparison game is real!
Thanks for the transparency and detail into your finances. Best of luck in getting out of debt and building your net worth. It sucks to see that college/universities has became such a scam for the majority of students. It is nothing but a business first then education second if they even provide one. Don't mind me I am just a salty and jaded person.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
Exactly, getting proper financial advise is invaluable, my portfolio is well-matched for every season of the market and recently hit 140% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year.
My CFA SOPHIE LYNN CARRABUS a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Love the transparency and I do think that many people will get inspired by this or feel better about their situation! Congrats for being in 5 figure debt haha, hope you pay it off all very soon! All the best 🙌
I love that you’re sharing your journey! Most Gen Z is so negative but it’s so refreshing to see your optimism and that you’re strategizing different ways to grow your money. Love to see it! :)
Nice! I am 22 and just got accepted into med school, so my situation will look similar to yours once I'm done with residency in 10 or so years haha. Congrats on finishing OT school!
It's crazy that in US you start your life with such high debt. My friends and I (in EU) invest even whilst in University and start our lofe with positive net worth.
Love the transparency and keep up the good work. I was in a similar situation 2 years (23 then and 25) now. I had $76,000 in negative net worth and the biggest difference is mine was ALL high interest credit card debt lol. Idk what your schedule is, but maybe a second job temporarily? Its rough with a family but in that 2 year period I went from that negative $76k mark to now a positive $44k. I’d love to not do my second job lol, but Id figure stick it out to a 6 figure net worth. Hopefully by 28
With the way society is set up, it's hard to be debt free by 30. Usually people just live with debt. I can already retire (hit the number at 24, currently 29) but that got boring really quick. I grew up poor so I kind of focused on not being poor... by being poor. Went into the army to start making money, saved my money when I was in. Saved around 10-12k I think by the time I got out. Spent those nights on guard duty planning out my next moves after. I learned investing, researched companies and saw one I liked when I was a kid. That was AMD when it was $2-3 a share. Now it's in the mid 100s. That gain let me buy a townhouse in cash (before prices went through the roof) and I kept on investing after. Went to college, got a free degree and then retired. Got bored, got a part time job and am now just vibing. I kind of want to start a family but I do have to take care of my mom. She had me at 44 and would last a year before losing all her savings without me. My expenses per month are 1500-1800 depending. Not bad.
Being a personal trainer has been going surprisingly well. I pay all my bills, and split rent with a roomate. I don't have a car because I live in a big city, and at 24 years old (25 in abt 8 months) my net worth is about 74.5k. I don't let it give me the comfort to slack off though
I am just happy I have positive net worth at 23. Sure does help to live in a country where uni is free. Can't comprehend all the expenses you have to put up with on the other side of the pond.
Pro tip for the HSA, you will get more value out of it in the long term if you treat it more like a Roth IRA instead of an FSA. It's a triple tax advantaged account (the only one at that), so everything you put in is pre-tax, you don't have to pay capital gains tax on any investment gains, and you don't pay any taxes on distributions either. Leaving the cash in the account and invested is worth more than the immediate tax savings on current medical expenses. You can submit receipts for reimbursement whenever you want to, even if it is 30+ years after you incurred the expense as long as you keep the receipts. It's best to keep that money in there growing tax free if you can afford to cover medical expenses with regular savings, and then when you need the money later on you can submit the accumulated receipts for reimbursement.
Okay, I’m aware of this but genuinely curious- if you can only spend it on healthcare related costs what’s the benefit of having a crap ton of money in it? I’m never going to need 100k+ worth of health costs if I can’t use it for LTC or to pay my premiums. Can you cash it out for anything past a certain age?
You can keep track of your healthcare expenses and retroactively spend it to refund yourself on those. So say you keep all of your expenses tracked from now until the rest of your life in a drive somewhere. You pay for all of these expenses with a debit or credit card and later down the line you want to pull funds from the HSA to refund yourself for those purchases you would just reference the expenses in the drive.
@@sandraonabudget Starting at 65, you can cash it out for any purpose similarly to a 401k (taxed as income) but qualified medical expenses are still zero penalty/zero tax. So in the worst case scenario, it is just another 401k, but in the best case you completely avoid all taxes. Until then, if you keep track of your medical expenses, you can send in a qualified reimbursement request at any point as long as you have proof of the original payments. So if in 8 years you needed money, you could submit your premium payment receipts going back 8 years and pull out 8 years worth of premium expenses from the account all at the same time. At that point, the contributions would have grown tax free so you would come out ahead and have more in the account than you would have if you paid immediately from the HSA. Trust me, you will have qualified medical expenses that you can use to draw down the account when you retire unless you end up with millions in the account or die before you have a chance to use the funds. My grandparents are in fantastic health, but at 90 and 92 they pay more in recurring medical expenses (supplementary insurance premiums, copays, prescriptions, incidental injuries, etc...) than the average mortgage costs.
I had both of my kids work throughout high school. I have each of them $2,000 to start their Roth IRAs. By the time that finished high school each had $10,000 in their accounts and $10,000 in savings. My daughter received a full STEM scholarship with a generous stipend. She also worked saved and invested throughout college. She is graduating next semester and has maintained straight A’s. She already has a full time offer from a biotech company. She just applied to graduate school. My son is still in college and we are paying for his entire tuition through a 529 plan. He also works and contributes to his Roth each month. I hope they will both continue to save for retirement aggressively once they graduate and enter the workforce. I have been teaching them about finance since they were in kindergarten.
Depending on the interest rate of your loan, it may not be the best idea to pay it off 'aggressively'. Let's say the interest rate is 1% and your payment is $500/mo. Instead of paying $1000 towards that (a 1% gain), invest that $500 where you can easily get 4% (+3%) if not a fair bit more. Yea, it is nice not having the debt hanging over your head, but it doesn't always make sense to pay it 1st. Also, your HSA. Do not touch that $ unless you have to. If you can afford to pay out of pocket, do it, and let that $ grow, as there is no better tax vehicle out there. Save all of your medical receipts because you can reimburse yourself for them at any time. If at some point you are in a tough spot, you could then get the cash for it, while letting the $ grow in the meantime.
1. Nobody has an interest rate of 1% 2. Paying off my loans buys me time freedom. Once my loans are gone I’ll be able to work .5 FTE which is worth a lot more to me than retiring with an extra 200K ❤️ 3. Thank, I’ll look into the benefits of riding out the pretax money in my HSA vs budgeting it out of pocket. Thanks for watching
@@sandraonabudget I have no idea what your rate is, it was just an example, as compared to a CC rate of 26%....that you would want to pay off immediately because you aren't going to make that return on your money very easily! If your peace of mind is worth more than the $ you'll earn, then that's your choice. Just highlighting different theories/options....and I think it would come out to a lot more than $200k over your time frame! As far as 'time freedom', no matter how you slice it you have to trade time for $. You could, of course, work less per year but that may equate to more years you need to work. Or you could opt to work a lot, for less yrs (my option). I am going to 'retire' at 50. The big problem w/ the whole thing is, you have no idea when your time is up. I could have wasted the last 30 yrs, and die at 51. Maybe I'll make it to 100....who knows! Each of us gets to make our own choices! One last thing about the HSA, at 65 (I think), it essentially becomes an IRA. You can withdraw it for anything and just pay tax, no penalty for non medical expenses.
@@Dave_D.she pointed out that 1% is unrealistic bc it’s not an accurate presentation of what interest looks like. If you wanted to use a realistic conservative interest rate your looking at 5% min. The example you used is to theoretical to be used as any valuable advice
@@Aboguaboga My example is a generalization. The actual numbers are irrelevant to explain a concept. If the interest rate is 50%, but you can earn 60%, it's the same idea....just plug in your own numbers.
Im 25, hard focused on paying off debt, and im about 110% of my gross annual income in debt. Plan is to be free of bad debt (high interest loans and credit cards) by early to mid 2026 and low interest debt will remain while i focus on investing. 2-5% student loans arent bad when you can gain 7-9% with the S&P 500. Right now for investing im just meeting my employer match which puts my combined 401k at 9% of my income (5% out of pocket, 4% match)
24 here with 190k net worth. Aggressively investing is key in my opinion. I would rather keep the debt and max out investments. The investments will grow faster than the debt
I'm on the same path. I'm 23 with a net worth of 120k before the bull market takes off this year. I've been aggressively investing in stocks and crypto since I turned 18 with money I had saved up from the jobs I worked since I was 16. I just worked regular jobs and got wage increases to feed more money into my portfolios. Not going to college and going straight into the workforce was the best decision I could have made to give me the best start to my adult life
That is crazy. At 25 I was like 160k in debt but it was a house I didn’t go to school. Now I am a little under a million in debt and it is 3 homes with one paid off. Wife and I had aggressive financial goals. We put off having kids for about the first ten years of our marriage. Wish we had more kids now she is not able to get pregnant anymore. So we only have two. My unsolicited advice is you’re obviously doing well and have a great plan financially don’t put off having kids if it is something you want. If you don’t want kids great but if you do find the right partner and make it a priority before it’s too late.
Before I say anything, A+ for the transparency. But goodness... 120k.... That's gnarly. I looked it up and saw that that's pretty average for occupational therapy. On top of that an occupational therapist is pretty lucky to break into 6 figures of income. That seems like a borderline scam. If it's required to spend a small mortgage in education I would expect to get a small mortgage of income or else I'm not choosing that field. That's CRAZY!
Can’t disagree with you there. Unfortunately, it’s probably the best money I every spent because I LOVE my job and couldn’t imagine doing anything else
I love watching these types of videos, especially when its from smaller youtubers where their net worth isnt heavily skewed by the fortune they made from their channel lol.
As a European this is absolutely insane. In our country the only thing people go into debt is a house! I know absolutely no one at my age (25) who is in debt. Most of my friends have already saved between 50k and 100k, no debt.
@@WiIIy_Wonka I am also European and have lived in Spain and I agree that our system is inhibitory to those that don’t start with money, but the finances and way that the economies operate in the USA versus Spain (which is the only thing I can compare it to) is very different. I know lots of 25 year olds in the states that have no debt and wouldn’t be able to compare their financial situation to 25 year olds I know there. I’m glad I could shed some light into how our system works and where I’m at, and while it may be shocking to you it’s also not the end of the world here!
I’m 20 with $7,000 saved with a full time job car and rent. I have no parental help and I feel very good about the future I know $7,000 isn’t much but for me it’s a great stepping stone
This video was randomly on my redxomended page and I thought u were gonna be another one of those.. 200k or 500k net worth 24 yr olds. This video was a lot more realistic than I thought.
They probably inherited that money because of family death and then they claim to be dropshippers, driving a lambo and selling courses. You’d be in the top 2% in this age group with this much money.
Fantastic job!! Great organization and intent with your dollars! Soo idk your expenses, but considering you spilt cost with your bf, I believe you’re holding too much cash. Put more into your Roth, you can always get the return on your principle so it’s not locked up in any way. You could also open a standard brokerage acct to invest your nest egg! Godspeed
I would like to see how you fair vs someone who didn’t go to college. I did 6 years in the military. I now have a government job making 64k per year. Never had any major debt just car payments. My 401k has 80k in it and I’m 30. You probably make more money but with that debt it’s a huge offset.
Depending on your interest on your stufent loans you could definitely cashflow it (you did mention that theyre federal so likely 6 percent or under). if the interest is low enough i would make the payments lower closer to the minimum, so that i could focus on building up my investments. the reason why is because investments would likely grow at a rate greater than 6 percent. Depending on your personal situation you could also consider this, while paying off debt can be relieving, you are still so young that its better in my personal opinion to have time on your side for your investments to grow because you’ll never get that time for growth and compounding back. Of course personal finance is personal so apply it to your situation as you see fit!
Thanks for the thought! do have a few loans that are greater than 6% so the plan is to aggressively pay those off while investing the minimums and then pull back and invest a little harder. But I want to pay my loans off quicker because without them I’d be able to afford to work part time (while still investing enough to retire early) and what I really want is time freedom ASAP!
@ like the money guys say „time is your greatest asset, but can also be your fiercest adversary“ time really is king and if time freedom is what you value then all the more power to you. You are doing yourself a favor by focusing on that debt but also at the same time investing for your future self. you are making time work for you instead of against you so hats off to you for thinking about these things while youre still so early on in your journey called life:)
I love money!! I built my whole resume to get me somewhere to make more than the average man. The FIRST AND MOST important thing you should invest in is your health via the greatest foods your body needs and a gym. Theres no point in havjng extra money in the future, if your time and money is spent at the doctors office and your quality of life is low. You CANT go back in time when it comes to health
Invest it. The savings accounts give you so little return, your money is just rotting away bc of inflation. Do some proper research on stocks. The best and easiets option would be the s&p500. It would give you an average yearly return of 10%. And with it being the index of the 500 largest companies of the US, the chances of it going to 0 are nearly 0. Just amke sure to invest after a downturn, as many believe that there is a major crash coming next year. But again, having your money in a bank or savings account isn't the best decision for growing your money.
Dudes in my space go how much BTC, ETH, DOGE, MSTR, TSLA, do you have, fiat is trash. I watched the vid, not understanding the title, so theirs good debt and bad debt. U have good debt, ur taking on this debt to aquire a skill that pays more than the average salary, just save, dont invest crazy, if you do no more than 50%, ur pretty much on point and doing things right
I'm 23M here, from Brazil. I'm worth roughly 10k and unfortunately in garbage currency. I undergrad at a public college, so no student loan debt and no debt what so ever. The point here is that I travel for work and work roughly 55-60 hours a week; I only have the Sundays and one day a month free, so my expenses are pretty low, and it allows me to do more investments and savings.
i'm 27 and my net worth is like 30k€ , like 1k checking, 21k index funds, 7.5k crypto lol ive worked an internship that paid 500€/month for a year when i was 23-24, now i'm earning 800€/mo in a training program to be a train driver. the rest of the money is basically my parents giving me 10k€ they had saved for a masters' and i just didn't do a masters' and invested it in index funds, and that + some of the money i earned (around 2000€) is the bulk of the index funds the crypto is more or less a couple of lucky bets being early into BTC with like 100€ when BTC was 1000€, and then some ~500€ additional into ETH when it was around 1000€ too way later, and some switching coins around (and winning some but losing a lot as well lol) and ive basically lived w my parents ever since, that's why i've been able to have no job/shit paying jobs until now lol. Drained a lot of savings + crypto.
Becoming a millionaire is all about your mindset, you do build your mindset through research... also having a Mentor who can help you build your mindset and also be your guide, Although most people think they can do it without having a mentor... that is right and also wrong, having a mentor like Kathleen Eisen I have managed to grow a nest egg of around 3Btc’s to a decent 26Btc’sin the space of a few months. Amidst this, the insights of a knowledgeable guide like that of Kathleen Eisen can be crucial, Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
Glad to see some videos, that are reasonable. not a 20 year old guy telling me i should have at least 100k in savings and debt free, or else i did something wrong
Don't focus on the debt, focus on your investments. Find a high growth vehicle that you can use to compound your way to 1 million over the next 5-7 years.
Why do you have more in your emergency fund than in all of your investments. I think in this society stocks are essentially free cash because of how quick you can pull money out takes 1-2 days at most if not same day. Invest your money into a very safe conservative index fund (basically only goes up).
I have 3 months of expenses in my emergency fund and am not contributing towards it more. Investments aren’t liquid, and if an emergency were to happen I would need cash I could use to avoid debt. I just started working 6 months ago so my investments will grow, but I wanted to have a safety net first.
I’m a financial advisor and this is great to see. I always say it doesn’t matter where you start. If you have the right mentality you will get there. Best of luck!
Nothing like getting encouragement from the experts. Thanks for watching!
@@sandraonabudget Buy Tesla and Palantir stock.
@@rostyloco1 Why
Being debt free by 30 is still way better than most people. Nice work Sandra!
the fact that that is so normal for you guys in the us to have 6 figure debt, and its even celebratd being debt free is mind blowing to me. i never been in debt and had a net worth of 5k when i was 20. now at 24 that is way more
Way more honest than I would’ve anticipated. This is very much appreciated
Great job with the transparency! With all the financial UA-camrs I’m sure a lot of people watching them might feel hopeless if they don’t have $100,000 in their first 2 years of working!
I’ll take one for the team and be honest any time 👍🏻
@@sandraonabudget This was really interesting to hear about, but as someone living in germany i cant imagine having to take out to so much debt just to study or go to school. I am 18 currently and my semester fees are 200 euros ( roughly 190 dollars). I dont think i would mentally be able to deal with that amount of debt. Respect to you for having such a concise plan to pay of your debt. The one thing i still wanted to know is how high or low the intrest on your student loans are... Because i dont really know what kind of rates banks take for this in the United states.
Thank you so much for the transparency! I see so many videos of people who are worth over 300K and over at the age of 6 or something and its refreshing to be reminded that student debt right out of college is normal.
Maybe not “normal” but pretty common in the USA.
But yeah.. still waiting for my parents to surprise me with a trust fund
I did get scholarships for undergrad. And if I went to trade school I’d hate my job. I have a doctorate degree that’s necessary to do what I do and I love going to work.
I agree that student loans are not acceptable, the pressure to go to college is also not necessary and the price of tuition is disgusting, but saying “get a rich uncle to pay for it” is gross and not helpful.
@@fishandbike please stop advising trade schools! There are a LOT of tradesmen in my family. You aren't making 60k-70k a year until you are a couple of years into your job unless you live in one of the big expensive cities. They are also extremely brutal on your body. School does still have a good ROI if you do it the smart way.
There isn't money in trades unless you have the money to start your own business and then 90% of businesses fail... Or you have 20 years of experience. At that point you can find good money just about anywhere.
@Nonsense116 👏🏻👏🏻👏🏻
@@Nonsense116yeah this not to be insensitive but people forget similar modeling to it’s not just about competitiveness over saturation and large starting salaries . Like modeling the trades will wear the body and soul til someone younger can come in and do it better and faster .
Just the fact that you're paying attention and have a plan in place with long term goals puts you way ahead of the pack. I'm sure your channel will help inspire many other young adults. Best of luck on your journey!
I am also an OT! $109,000 in student loans. I've been working as an OT for 2 years now, and I also had the goal of being net worth neutral by 30. I've been super aggressively saving, and now I'm on track to be net worth neutral in 4 months- just in time for my 29th birthday! Keep up the great work- the net worth tracking is super motivating. I use the Money with Katie wealth planner every month and I highly recommend.
Awesome work! You’re crushing it! Thanks for the rec
Really appreciate the transparent view. It is very helpful to see where other people in Gen Z are.
Happy to over share any time in the name of helping others 👍🏻
Great video! You're significantly ahead of where I was at 25. When I graduated law school, my net worth was something like -180k. At 30 I paid off my student loans, and now at 35 my net worth is over $1 million. Just keep at it. I would throw some of those extra savings (outside of the car fund) on the student loans to really get going on that, but everyone has different risk preferences and it sounds like you're set up for success!
Congrats on the huge accomplishment yourself! Thanks for the motivation
Gah damn, lawyers make way too much money
How did you manage to get to a $1 mill net worth?, what is your salary?
@@Mdksupreme1 ~150k-350k over those years.
I’m 24 and my net worth is a bit over 4K. You’re on track to successfully. I got a paid BS through the military, I own a condo with a mortgage in California that I bought, and a decent paying job where I’m able to save half my income. My parents never taught me money other than pointing at a homeless person and tell me “you don’t want to be like that guy”.
One advice I can suggest is don’t buy stupid stuff and save save save. Also don’t believe in girl math.
Thanks for your service! Good luck out there. My girl math will allow me to retire early ❤️
Great insightful video, Sandra! I'm 24 (turning 25) next year and spent the last few years learning about investing, savings, etc. Sadly, there was a death in my family that put a stop to my rather aggressive savings/investing approach (I was trying to reach FIRE, but that isn't possible anymore). I am still finding my way with money currently, but like you; I also enjoy having multiple savings accounts so I can visualize what I have and where it is. It's nice to see people share the same mindset, although I used to dump all my money into one savings account when I was much younger.
Funny enough, I ALSO have a 14 year old car! Things aligned this year and I decided to get it for a relatively cheap price, although I wish I hadn't. I think biking and public transit (like I had been doing for several years already) was a much healthier and cost effective way to reach both health goals (since I was biking), but also investing and savings goals. I'm paying about $400 a month on insurance (because, Canada is crap lol) and I'd rather be using that money to fund my investments. -_- Butttt, the convenience and leisure of owning a car is so damn worth it!!
Also, although I am super self aware of this, I noticed that ever since getting a car my habits and lifestyle has changed - especially with money! I find myself splurging a bit more. I guess it's not totally a bad idea, as I'm still saving, investing, etc., but I think I should have put more thought into my decision with getting a car. Thankfully, no debt! Except for the usual weekly credit card "debt", which I leverage to assist with building up my credit score. No credit score issues (anymore), but I got unlucky a few years back and it impacted my credit horribly for three years. I lived, and my gosh, did I learn!
Anyway, oversharing now lol. Great savings, I love how you categorize them. I wish my bank would allow me to do that! But Canadian banks don't seem that intuitive. Great video, you've earned yourself a subscriber!
Also, I know this may sound like a silly question, but have you considered using that 10k from your emergency fund to help pay off that debt you have? I think it's a good idea. Of course having an emergency fund is essential to reaching financial stability, but since you are already in debt, it may be a good idea to use that 10k to your advantage!
Welcome! Isn’t it funny how a relatively small change (ie getting a car) can have so many rippling effects? We moved a little further from town and the opposite happened to me- it was harder to go splurge on a little treat at the store because it takes 10 minutes to drive there so I don’t do it lol
It’s so interesting to me to see what other people value! Thanks for sharing!
@ not silly at all because I’ve thought about it, but if I did have an emergency happen I would just have to go into more debt, so I’ll keep it for now! It would only shave a few months of payments off, so I’d rather have the financial security while I pay off the debt than risk needing it and not having it!
@@sandraonabudget Hey - thanks for the reply! Smart move there, makes sense that it's harder to splurge. That will hopefully help you maximize getting rid of the school debt!
And true, after posting my question, I quickly realized that it would only take off a few months worth, so it definitely makes a lot more sense to keep the fund in case of a real emergency. Smart move there as well!
Thanks again for the reply, and best of luck on your journey! I love when people are transparent about their money and such! It's always cool to see.
I feel blessed coming out of college with no debt. Keep up the grind and you will make it to six figures positive in no time.
Yes, time is the wind at your back. Only a little goes a long way. Great job!
This was a really cool video to see, big ups for being open and transparent! You're doing awesome, keep going!!!!! :D
Around $140k net worth at 24. Started investing and working at 19.
The first 100k were the hardest. Hopefully the next will be a lot easier 😅
No wayyyy I was just watching your video this morning, I love your work man keep it up
Awesome work you’re crushing it- I’m excited to get to that first big milestone!
Thank you for being so transparent and showing a realistic scenario! :)
We all have our crosses to bear. Since you got a plan and an ,,interesting“ structure, you surely will be able to hit you goal as long as you stay consistent!! Thanks for the transparency!
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
@@viviancarolgioao 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?
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Keep at it, I really wish I woulda hit it hard at 25, thankfully I managed to only have 15k student loans and paid them off within 2.5 years, but I didn’t even think of investing until 35.
Graduated from grad school with 340K of debt and no assets at 24. Currently 30 with a net worth of $385K. It can be done!
Awesome work! That’s a huge accomplishment!
Since my page is all about transparency, and I’d hate for some one to read this and think you did all of that on minimum wage, would you mind sharing what your salary was/is to get you there?
@ Of course! My first year out of school, my salary was 125K in a LCOL midwest area. Second year was in a HCOL area on the east cost and I made 145K. Third year I bumped the income up to 200K by working 6 days a week and traveling to different offices. Fourth year 240K through negotiations and working just under 6 days / week. Fifth year I had a child and my wife stayed home from work (she has always made between 35-40k), I slowed down to a standard 5 days a week and still made about 240K (negotiations paying off). I am in year six and projected to make about 245K but I am no longer picking up a ton of shifts and am traveling for leisure far more frequently. I did most of the hard work in years 2-4 where I spent about 20% of my income and invested the rest. I bought a home in year 4 which has helped grow my NW. Negotiating income added about 60K to my income this year but that’s half the story. It added income to years 4 and 5 that I was able to invest and those dollars are compounding quickly.
My long response is gone 😭
Do you have an email I can send full details to? You can use it as a data point for future purposes if you need to. It’s kind of a crazy journey.
@Corey25 why don't you just post on here?
At first I read that as 385k debt lol
Girl you’re doing better than a lot of Americans right now. way to go!
I'm impressed.. Sorting out your finances early on and focusing on financial stability is awesome..you'll out pace many for starting out early
I actually subscribed because of the honesty... very refreshing because as you said everywhere else people seem to be doing so well you start doubting yourself and your capacities.
Nice video. The way you spun a negative net worth into a positive is such an important mindset to have and shows that you're going to be successful. Best of luck
i always feel like im behind than i see how much student loan debt is because none of my friends ever tell me how much school costed being a guy who went to trade school seeing you talk openly about your finances gave me a clear perspective on that life is a journey and not a race no ones going anywhere its all in your head. being smart about your finances is super important especially at an early age. buying a home feels so foreign with the amount people are asking. being 26 i realize im doing amazing especially when everyone is just pretending to look rich than actually be rich. and someone who loves cars seeing you say that you'd rather buy another used car over a brand new one is something few people can do because they want to uphold an image i drive a 11 year old truck and im going to drive it till it dies
Glad I was able to help with your perspective! I sometimes feel guilty about my debt, but then I hear about my friends who hate their jobs and realize I may have paid a little more, but I LOVE getting to show up to work and have an impact on peoples lives. I’m totally with you- it’s a journey and I think trying to keep up with the next cool things can make that journey a lot more financially stressful. I just hope I can share my little journey and make people realize life is a lot more fun when you’re spending money on stuff you care about and that most of us aren’t millionaires!
@@sandraonabudget everyone grows at a different pace and everyone's end goal is different. I'm a licensed diesel mechanic and i spent most of my apprenticeship hating my job mostly because of work culture but I'm now very fortunate to be working where i actually like showing up. its all about determination and seeing your end goal to keep you motivated. i lost everything i had 2 years ago and i have doubled what i lost. financial literacy is super important.
Newly subscribed, I've been watching Dave Ramsey and I'm happy to come across your channel. It's like watching someone as they step by step walk through the process live.. fully here for it. I'm going to be able to say I knew Sandra before she became a millionaire 😏
Ramsey is an out of touch boomer who has no idea what it's like for a GenZ person today. Ramsey started investing back in the 70s when literally everything cheap. He's only been successful because he was in the right place at the right time.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
Just wanted to say, ‘Carol Vivian Constable’, my CFA, is the real deal in his field. Dig deeper into her background; she's got years of experience and is a goldmine for anyone diving into the financial jungle!
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
This is a great video. I must say, finding a good partner/spouse is very important as well. My wife and I went from cheap to now frugal. I am 30, she is 27. We just passed 600k net worth. paying off student loan and first 100k in retirement was the key. Of course getting lucky with the housing market as well. We are still planning on paying off the house in 2 years even the rate is 2.75%. People hate on Ramsey, saying he's only for those who can't control finances. For us, he's been more than good. His advice provides peace and consistency in life.
Definitely couldn’t do it without a good partner!
What's the rationale over paying off a 2.75% mortgage rate when you can still lock in a 4%+ arbitrage in CDs... Sure there's piece of mind, but there's no way you couldn't just liquidate assets if push came to shove, so the fear could be irrational. My main gripe with Dave Ramsey is that he assumes all of his callers have zero discipline and preaches the no debt rule although it's not always ideal. There is opportunity risk in being too conservative.
Your primary residence is not an asset you can liquidate because you’ll always need somewhere to live. The math maths with investing over debt payoff- but there’s also a lot to be said for owing nothing. As a working class citizen being debt free (including a mortgage) can buy freedom faster than investing. The amount of money you’d need to have invested to afford living expenses and a mortgage comfortably is a lot less than the amount to just pay off the debt in most cases- so you can buy freedom faster by paying off the debt. It’s important to be educated, so it’s good to bring up so that people know their options, but people value different things and infinite money might not be one them
@@sandraonabudget The biggest factor in investment success is time. Anything that compromises your time in the market delays or maybe even derails your chance of reaching financial freedom. It's not an "everyone has different values" issue. Every single one of us is facing a day where we either can't work, don't want to work, or no one wants our work and we have to prepare for it.
You can't make up for lost investing time.
Nice keep going! You're young so you have time on your side. It's great that you're so into your finances at such a young age. I wish I were more into when I was in my 20s.
I was very similar to you at 25. Keep pushing and you will be surprised what you can gain in the next 5 years.
Love the transparency and great call on tackling that debt! Keep it up! 👍
There are only 3 rules in life.
1. Your income always needs to be higher than your spending every month (at least most of the months).
2. You need to beat the inflation (usually around 2% yearly).
3. Dont buy an house that is out of your reach.
Paying off debts with rates higher than S&P500 yearly gains works too.
Beating the inflation at all costs is total bs, if there's inflation of 20%, trying to beat it no matter what will just push you into risky decisions. Yes, you need to beat it in the long run, but not year-to-year
Point 2 is wrong, You should be aiming to bet asset price inflation roughly around 10-12% YoY after taxes.
GOOD GOING SANDRA !
GREAT STUFF
KEEP MOVING FORWARD
YOU HAVE DONE REALLY WELL !
Well, keep it up. I appreciated the transparency perspective. It's all important. You can't not do the 401K because then you lose the time value of money over time, and you can't ignore the student loan. Decent all around strategy.
The fact that nobody talks about the book Forbidden Money Behind Closed Doors talks about dark techniques how people attract money
I literally hear about this book everywhere.
Nobodys falling for it dude
great video! appreciate you being so transparent and spreading positivity to pay off debt. Looking forward to following your journey and seeing you succeed :)
I'm in the same financial situation as you, but a little further down the road and I can say without a doubt that you're on the right track. I started off with about 170K of student loan debt 2 and a half years ago, and now that I just turned 29, my debt is now down to 60K which I'll likely be paying off in full soon as my HYSA interest is now lower than my loan interest. Aggressively paying it down has 2 major benefits, the first being the obvious: less debt. The second is that once the debt is gone (depending on how aggressive you were). you'll essentially have an entire additional income of cash flow (think what an extra 50K a year will do for you).
All this is to say, good job and good luck! I started getting my full income a little later than you, so I'm hovering around 80K, but 100K net worth in 5 years is absolutely doable!
Congrats on the achievement!
This is the first video of yours I’ve come across and I’m only a minute in but I’m already hooked because we have so much in common, I’m also 25 and a PT who works closely with OTs and just graduated this year! Can’t wait to see what your channel has to offer ☺️
YES to feeling behind just starting to work now! a lot of my friends also went to grad school but I feel like most of the finance creators I watch started earning at 21/22 and the comparison game is real!
Welcome! And congrats on your accomplishment! Love my PT counterparts and it’s so nice to know someone who feels the same way! We got this!!
Thanks for the transparency and detail into your finances. Best of luck in getting out of debt and building your net worth. It sucks to see that college/universities has became such a scam for the majority of students. It is nothing but a business first then education second if they even provide one. Don't mind me I am just a salty and jaded person.
I’m with you.. the cost is very yucky
I like how it's organized! Very promising that you're putting in the effort. Can't wait to see the 30 results!
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory
Exactly, getting proper financial advise is invaluable, my portfolio is well-matched for every season of the market and recently hit 140% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year.
@@PatrickLloyd- this is awesome! can you please leave the info of your advsor here? i’m in dire need of financial advisory
My CFA SOPHIE LYNN CARRABUS a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Really doing great! Best wishes for this channel
super cool, wishing you more luck in the wealth building journey!
Bold to share your personal finances! Thank you and wish you well 🙏
Happy to be brave for the greater good 👍🏻
Enjoyed this a lot! Would love to see more of these type of videos. Keep it up!
High-quality video. Liked and subbed.
Love the transparency and I do think that many people will get inspired by this or feel better about their situation!
Congrats for being in 5 figure debt haha, hope you pay it off all very soon! All the best 🙌
I love that you’re sharing your journey! Most Gen Z is so negative but it’s so refreshing to see your optimism and that you’re strategizing different ways to grow your money. Love to see it! :)
Honestly. It needs courage to make videos on topics like this! You go girl 🎉
Subscribed!
Im tagging along to watch this all happen in the next 4 years
Happy to have you!
You're still young with plenty of time and you're making significant progress!
Nice! I am 22 and just got accepted into med school, so my situation will look similar to yours once I'm done with residency in 10 or so years haha. Congrats on finishing OT school!
Congrats on the accomplishment and good luck in med school!
It's crazy that in US you start your life with such high debt. My friends and I (in EU) invest even whilst in University and start our lofe with positive net worth.
Take it up with our government 🤷♀️
Nice work! I used to pay toward my loans every Sunday night. I used a spreadsheet and also wrote it out on my bathroom mirror.
Love the transparency as an OT!
loved the video and your response to comments. look forward to more.
Thanks for watching!
thank you for an honest video :) just subscribed for the transparency!
Welcome :)
Oohh just found your channel and i love it here!! Regardless of the debt, you're doing great, Sandra! 😀
Welcome!!
Love the transparency and keep up the good work. I was in a similar situation 2 years (23 then and 25) now. I had $76,000 in negative net worth and the biggest difference is mine was ALL high interest credit card debt lol. Idk what your schedule is, but maybe a second job temporarily? Its rough with a family but in that 2 year period I went from that negative $76k mark to now a positive $44k. I’d love to not do my second job lol, but Id figure stick it out to a 6 figure net worth. Hopefully by 28
Awesome work! Totally worth it in the long run. I should have all my debt paid off in 3-4 years, which is fine with me.
This is my second job :)
Way to go Sandra. Gen Z listening
With the way society is set up, it's hard to be debt free by 30. Usually people just live with debt. I can already retire (hit the number at 24, currently 29) but that got boring really quick. I grew up poor so I kind of focused on not being poor... by being poor. Went into the army to start making money, saved my money when I was in. Saved around 10-12k I think by the time I got out. Spent those nights on guard duty planning out my next moves after. I learned investing, researched companies and saw one I liked when I was a kid. That was AMD when it was $2-3 a share. Now it's in the mid 100s. That gain let me buy a townhouse in cash (before prices went through the roof) and I kept on investing after. Went to college, got a free degree and then retired. Got bored, got a part time job and am now just vibing. I kind of want to start a family but I do have to take care of my mom. She had me at 44 and would last a year before losing all her savings without me. My expenses per month are 1500-1800 depending. Not bad.
"Got bored, got a part time job." 😂
Being a personal trainer has been going surprisingly well. I pay all my bills, and split rent with a roomate. I don't have a car because I live in a big city, and at 24 years old (25 in abt 8 months) my net worth is about 74.5k. I don't let it give me the comfort to slack off though
I’m 26 and 225k positive network in California. I’m self made first generation. Let’s get this!!
I am just happy I have positive net worth at 23. Sure does help to live in a country where uni is free. Can't comprehend all the expenses you have to put up with on the other side of the pond.
Im always so worried about money. Videos like this make me feel like im doing okay
Money can be very stressful, I like to control what I can
Made me feel a lot better for my own finacial status, thank you!
I never know if these comments are compliments or insults so I get to choose to take it as the former and I'm so glad I made you feel better
@sandraonabudget it's a complement🙌 (I'm a university student that thinks it's behind in life for context)
Pro tip for the HSA, you will get more value out of it in the long term if you treat it more like a Roth IRA instead of an FSA. It's a triple tax advantaged account (the only one at that), so everything you put in is pre-tax, you don't have to pay capital gains tax on any investment gains, and you don't pay any taxes on distributions either. Leaving the cash in the account and invested is worth more than the immediate tax savings on current medical expenses. You can submit receipts for reimbursement whenever you want to, even if it is 30+ years after you incurred the expense as long as you keep the receipts. It's best to keep that money in there growing tax free if you can afford to cover medical expenses with regular savings, and then when you need the money later on you can submit the accumulated receipts for reimbursement.
Okay, I’m aware of this but genuinely curious- if you can only spend it on healthcare related costs what’s the benefit of having a crap ton of money in it? I’m never going to need 100k+ worth of health costs if I can’t use it for LTC or to pay my premiums. Can you cash it out for anything past a certain age?
You can keep track of your healthcare expenses and retroactively spend it to refund yourself on those. So say you keep all of your expenses tracked from now until the rest of your life in a drive somewhere. You pay for all of these expenses with a debit or credit card and later down the line you want to pull funds from the HSA to refund yourself for those purchases you would just reference the expenses in the drive.
@@sandraonabudget Starting at 65, you can cash it out for any purpose similarly to a 401k (taxed as income) but qualified medical expenses are still zero penalty/zero tax. So in the worst case scenario, it is just another 401k, but in the best case you completely avoid all taxes.
Until then, if you keep track of your medical expenses, you can send in a qualified reimbursement request at any point as long as you have proof of the original payments. So if in 8 years you needed money, you could submit your premium payment receipts going back 8 years and pull out 8 years worth of premium expenses from the account all at the same time. At that point, the contributions would have grown tax free so you would come out ahead and have more in the account than you would have if you paid immediately from the HSA.
Trust me, you will have qualified medical expenses that you can use to draw down the account when you retire unless you end up with millions in the account or die before you have a chance to use the funds. My grandparents are in fantastic health, but at 90 and 92 they pay more in recurring medical expenses (supplementary insurance premiums, copays, prescriptions, incidental injuries, etc...) than the average mortgage costs.
So helpful- honestly hadn't gotten around to digging deeper, but definitely will now! Thank you
I had both of my kids work throughout high school. I have each of them $2,000 to start their Roth IRAs. By the time that finished high school each had $10,000 in their accounts and $10,000 in savings. My daughter received a full STEM scholarship with a generous stipend. She also worked saved and invested throughout college. She is graduating next semester and has maintained straight A’s. She already has a full time offer from a biotech company. She just applied to graduate school. My son is still in college and we are paying for his entire tuition through a 529 plan. He also works and contributes to his Roth each month. I hope they will both continue to save for retirement aggressively once they graduate and enter the workforce. I have been teaching them about finance since they were in kindergarten.
They’ll be so grateful in the future (if they’re not already)!
3:00 you can contribute to your Roth IRA until April of next year.
I love you, internet stranger, for making me aware of this
Sort of in the same $ range but all invested so can swing high and come down low only difference . 2025 we all gonna grow!
Depending on the interest rate of your loan, it may not be the best idea to pay it off 'aggressively'. Let's say the interest rate is 1% and your payment is $500/mo. Instead of paying $1000 towards that (a 1% gain), invest that $500 where you can easily get 4% (+3%) if not a fair bit more. Yea, it is nice not having the debt hanging over your head, but it doesn't always make sense to pay it 1st.
Also, your HSA. Do not touch that $ unless you have to. If you can afford to pay out of pocket, do it, and let that $ grow, as there is no better tax vehicle out there. Save all of your medical receipts because you can reimburse yourself for them at any time. If at some point you are in a tough spot, you could then get the cash for it, while letting the $ grow in the meantime.
1. Nobody has an interest rate of 1%
2. Paying off my loans buys me time freedom. Once my loans are gone I’ll be able to work .5 FTE which is worth a lot more to me than retiring with an extra 200K ❤️
3. Thank, I’ll look into the benefits of riding out the pretax money in my HSA vs budgeting it out of pocket.
Thanks for watching
@@sandraonabudget I have no idea what your rate is, it was just an example, as compared to a CC rate of 26%....that you would want to pay off immediately because you aren't going to make that return on your money very easily! If your peace of mind is worth more than the $ you'll earn, then that's your choice. Just highlighting different theories/options....and I think it would come out to a lot more than $200k over your time frame!
As far as 'time freedom', no matter how you slice it you have to trade time for $. You could, of course, work less per year but that may equate to more years you need to work. Or you could opt to work a lot, for less yrs (my option). I am going to 'retire' at 50. The big problem w/ the whole thing is, you have no idea when your time is up. I could have wasted the last 30 yrs, and die at 51. Maybe I'll make it to 100....who knows! Each of us gets to make our own choices!
One last thing about the HSA, at 65 (I think), it essentially becomes an IRA. You can withdraw it for anything and just pay tax, no penalty for non medical expenses.
@@Dave_D.she pointed out that 1% is unrealistic bc it’s not an accurate presentation of what interest looks like. If you wanted to use a realistic conservative interest rate your looking at 5% min.
The example you used is to theoretical to be used as any valuable advice
@@Aboguaboga My example is a generalization. The actual numbers are irrelevant to explain a concept. If the interest rate is 50%, but you can earn 60%, it's the same idea....just plug in your own numbers.
Stay laser-focused on your finances, make smart decisions with your money, and good things should happen.
Im 25, hard focused on paying off debt, and im about 110% of my gross annual income in debt. Plan is to be free of bad debt (high interest loans and credit cards) by early to mid 2026 and low interest debt will remain while i focus on investing. 2-5% student loans arent bad when you can gain 7-9% with the S&P 500. Right now for investing im just meeting my employer match which puts my combined 401k at 9% of my income (5% out of pocket, 4% match)
24 here with 190k net worth. Aggressively investing is key in my opinion. I would rather keep the debt and max out investments. The investments will grow faster than the debt
Sounds like great advice, you should share it on your channel ❤️
23, 113k equity 170k in assets using margin at 5.8%, started investing aggressively at 19, I agree and glad to see like-minded individuals!
I'm on the same path. I'm 23 with a net worth of 120k before the bull market takes off this year. I've been aggressively investing in stocks and crypto since I turned 18 with money I had saved up from the jobs I worked since I was 16. I just worked regular jobs and got wage increases to feed more money into my portfolios. Not going to college and going straight into the workforce was the best decision I could have made to give me the best start to my adult life
That is crazy. At 25 I was like 160k in debt but it was a house I didn’t go to school. Now I am a little under a million in debt and it is 3 homes with one paid off. Wife and I had aggressive financial goals. We put off having kids for about the first ten years of our marriage. Wish we had more kids now she is not able to get pregnant anymore. So we only have two. My unsolicited advice is you’re obviously doing well and have a great plan financially don’t put off having kids if it is something you want. If you don’t want kids great but if you do find the right partner and make it a priority before it’s too late.
Before I say anything, A+ for the transparency.
But goodness... 120k.... That's gnarly. I looked it up and saw that that's pretty average for occupational therapy. On top of that an occupational therapist is pretty lucky to break into 6 figures of income. That seems like a borderline scam. If it's required to spend a small mortgage in education I would expect to get a small mortgage of income or else I'm not choosing that field. That's CRAZY!
Can’t disagree with you there. Unfortunately, it’s probably the best money I every spent because I LOVE my job and couldn’t imagine doing anything else
I love watching these types of videos, especially when its from smaller youtubers where their net worth isnt heavily skewed by the fortune they made from their channel lol.
Thanks for watching ❤️
As a European this is absolutely insane. In our country the only thing people go into debt is a house! I know absolutely no one at my age (25) who is in debt. Most of my friends have already saved between 50k and 100k, no debt.
@@WiIIy_Wonka I am also European and have lived in Spain and I agree that our system is inhibitory to those that don’t start with money, but the finances and way that the economies operate in the USA versus Spain (which is the only thing I can compare it to) is very different. I know lots of 25 year olds in the states that have no debt and wouldn’t be able to compare their financial situation to 25 year olds I know there. I’m glad I could shed some light into how our system works and where I’m at, and while it may be shocking to you it’s also not the end of the world here!
@@sandraonabudget Yeah thanks for sharing :) Although it's shocking, it's also very interesting :)
Love the transparency
I’m 20 with $7,000 saved with a full time job car and rent. I have no parental help and I feel very good about the future I know $7,000 isn’t much but for me it’s a great stepping stone
You’re doing amazing!
Good luck you are in the good path.
I definitely appreciate the transparency!
I'm paying off debt and trading and investing 📈
This video was randomly on my redxomended page and I thought u were gonna be another one of those.. 200k or 500k net worth 24 yr olds. This video was a lot more realistic than I thought.
Thought the same. Very refreshing to see normal people lol
They probably inherited that money because of family death and then they claim to be dropshippers, driving a lambo and selling courses. You’d be in the top 2% in this age group with this much money.
Fantastic job!! Great organization and intent with your dollars!
Soo idk your expenses, but considering you spilt cost with your bf, I believe you’re holding too much cash. Put more into your Roth, you can always get the return on your principle so it’s not locked up in any way. You could also open a standard brokerage acct to invest your nest egg! Godspeed
I would like to see how you fair vs someone who didn’t go to college. I did 6 years in the military. I now have a government job making 64k per year. Never had any major debt just car payments. My 401k has 80k in it and I’m 30. You probably make more money but with that debt it’s a huge offset.
This makes me feel great all I have is a truck that I owe money on then whenever I buy a house that’ll be it unless something else comes up
At your service 🫡
Depending on your interest on your stufent loans you could definitely cashflow it (you did mention that theyre federal so likely 6 percent or under). if the interest is low enough i would make the payments lower closer to the minimum, so that i could focus on building up my investments. the reason why is because investments would likely grow at a rate greater than 6 percent. Depending on your personal situation you could also consider this, while paying off debt can be relieving, you are still so young that its better in my personal opinion to have time on your side for your investments to grow because you’ll never get that time for growth and compounding back. Of course personal finance is personal so apply it to your situation as you see fit!
Thanks for the thought! do have a few loans that are greater than 6% so the plan is to aggressively pay those off while investing the minimums and then pull back and invest a little harder. But I want to pay my loans off quicker because without them I’d be able to afford to work part time (while still investing enough to retire early) and what I really want is time freedom ASAP!
@ like the money guys say „time is your greatest asset, but can also be your fiercest adversary“ time really is king and if time freedom is what you value then all the more power to you. You are doing yourself a favor by focusing on that debt but also at the same time investing for your future self. you are making time work for you instead of against you so hats off to you for thinking about these things while youre still so early on in your journey called life:)
I love money!! I built my whole resume to get me somewhere to make more than the average man. The FIRST AND MOST important thing you should invest in is your health via the greatest foods your body needs and a gym. Theres no point in havjng extra money in the future, if your time and money is spent at the doctors office and your quality of life is low. You CANT go back in time when it comes to health
Invest it. The savings accounts give you so little return, your money is just rotting away bc of inflation. Do some proper research on stocks. The best and easiets option would be the s&p500. It would give you an average yearly return of 10%. And with it being the index of the 500 largest companies of the US, the chances of it going to 0 are nearly 0. Just amke sure to invest after a downturn, as many believe that there is a major crash coming next year. But again, having your money in a bank or savings account isn't the best decision for growing your money.
Dudes in my space go how much BTC, ETH, DOGE, MSTR, TSLA, do you have, fiat is trash. I watched the vid, not understanding the title, so theirs good debt and bad debt. U have good debt, ur taking on this debt to aquire a skill that pays more than the average salary, just save, dont invest crazy, if you do no more than 50%, ur pretty much on point and doing things right
I'm 23M here, from Brazil. I'm worth roughly 10k and unfortunately in garbage currency. I undergrad at a public college, so no student loan debt and no debt what so ever. The point here is that I travel for work and work roughly 55-60 hours a week; I only have the Sundays and one day a month free, so my expenses are pretty low, and it allows me to do more investments and savings.
i'm 27 and my net worth is like 30k€ , like 1k checking, 21k index funds, 7.5k crypto lol
ive worked an internship that paid 500€/month for a year when i was 23-24, now i'm earning 800€/mo in a training program to be a train driver. the rest of the money is basically my parents giving me 10k€ they had saved for a masters' and i just didn't do a masters' and invested it in index funds, and that + some of the money i earned (around 2000€) is the bulk of the index funds
the crypto is more or less a couple of lucky bets being early into BTC with like 100€ when BTC was 1000€, and then some ~500€ additional into ETH when it was around 1000€ too way later, and some switching coins around (and winning some but losing a lot as well lol)
and ive basically lived w my parents ever since, that's why i've been able to have no job/shit paying jobs until now lol. Drained a lot of savings + crypto.
Becoming a millionaire is all about your mindset, you do build your mindset through research... also having a Mentor who can help you build your mindset and also be your guide, Although most people think they can do it without having a mentor... that is right and also wrong, having a mentor like Kathleen Eisen I have managed to grow a nest egg of around 3Btc’s to a decent 26Btc’sin the space of a few months. Amidst this, the insights of a knowledgeable guide like that of Kathleen Eisen can be crucial, Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
She’s mostly on Telegrams, using the user name.
@KathleenEisen
Glad to see some videos, that are reasonable. not a 20 year old guy telling me i should have at least 100k in savings and debt free, or else i did something wrong
Don’t worry- lots of 20 year old guys in the comments to remind you they exist
Sandra, I think you'd really like the YNAB budgeting app
We use it for our combined expenses- big fan!
Great vid! What are some other financial influencers you're following? Regards from Sweden 🇸🇪
Big fan of @herfirst100k and @erinconfortini on instagram. Also loved Die with Zero (book) and listening to the money for couples pod
Don't focus on the debt, focus on your investments. Find a high growth vehicle that you can use to compound your way to 1 million over the next 5-7 years.
@@jhoncena1111 no ❤️
Need more vids!! Thx for sharing
Thanks for being here! Working on more!
Why do you have more in your emergency fund than in all of your investments. I think in this society stocks are essentially free cash because of how quick you can pull money out takes 1-2 days at most if not same day. Invest your money into a very safe conservative index fund (basically only goes up).
I have 3 months of expenses in my emergency fund and am not contributing towards it more. Investments aren’t liquid, and if an emergency were to happen I would need cash I could use to avoid debt. I just started working 6 months ago so my investments will grow, but I wanted to have a safety net first.