I recently turned my hobby into a side business. I get so excited when I earn even just $50 from a sale vs. when I earn $50 through my hourly job. There is definitely a rewarding feeling that comes from selling something you created and it inspires me to think bigger about how I earn money in my life.
Financial freedom? Let me share a big laugh with you. As long as you are still making-money, you're not financial free. Ask yourself this question, what happens when you stop making anymore money, whether passive or active? To me, financial freedom is when you no longer need income (make money).
@@oscarore5520 Earned Income also got hit via pandemic just as business and side hustle... And both get unemployment right now so..... Also, you don't fire yourself, you can just adapt and cover your own costs and keep it going. You give yourself the job you don't worry if you have one to go back too. ALSO - believe it or not, some businesses are doing better due to the pandemic. (I am involved one such and am aware of others.) So the question is one of opportunities. You can also invest in the entire network of businesses via the stock market dividend bearing index fund with some of your business income. There are of course other diversifications. But ultimately you need to leave sight of the shore you are on and get those adaptive mechanisms to learn how to overcome the fears of failure that may, or may not - be founded. But if you don't gain momentum through progress and just stay Doomer - you won't get those benefits that you can leverage to overcome circumstances.
The one thing no one tells you is you still have to become an employee before you get financial freedom. Because no business is free to start. You need money to start and where do you get money, a job!
Here is one example of making tons of money with zero money invested: wholesaling real estate. Many have been able to start their business with literally no money to begin with. Where there is a will, there is a way, which is what she is trying to get at here. If you haven't read Rich Dad, Poor Dad, I highly recommend it. She is getting most of her points here from that book.
"Spent most of my waking hours at work." - Yup, been doing that for over 15 years. Missed birthdays, anniversaries, trips, travel...I'm just working so that when I'm too old to move, I have some money. Working 10-12 hour days at a stressful job for people who couldn't care less if you dropped dead or are miserable.
@@PierreLaBaguette Bills to pay. Probably not going to find another job making similar money. But I did change my situation and have a new job now, it's still long hard hours, but not as bad.
Quitting one's job has become a fad these days.Most people think that if you want to be rich you should start a business.Why not keep your job and start a side hustle? Working gives you a lot of experience about business matters and provides you a safety cushion.Stop portraying work as a negative thing.Keep your job and start a side business, the key is to have multiple sources of income.
If one like their job, they wouldn't think of it as restraining their freedom.Do what you love and want to pursue, then you will come to love your job and won't want to quit it.If you love your job then why quit!!Don't do what you do not love!!Then there will be no lack of freedom....
@@fatisummer9106 Most succesful businessmen put in 16-18 hrs a day,don't think that just bcoz you are a business owner you will be free....they are the most hard pressed for time.If you want true freedom you should do what you love and pursue your passion....not by stopping working!!Whether you are in a job or running a business you need to work in some form!!Don't be a lazy unproductive bum who wants to sit around and do nothing all day!!
Agree.. it is not necessary to quit your job to achieve financial freedom. It's about increasing income, reducing expenses and investing wisely using that additional income. Side hustles are a way to achieve that. The experience gained from working gives you the skills you need to earn even more money in the future, be it getting a higher paying job, or starting out your own business.
I was totally inspired by you Rose, opened my Roth IRA at fidelity. I know more about IRA, 401K that I can explain to my kids but I am missing your videos. I hope you are doing alright. God bless.
I just cannot see myself working for someone else for the next 40 years, so I'm definitely working towards the same thing. Congrats Rose on all your success!
@Never lose sleep over the small stuff i guess i'll work for five years and save. live like a king in se asia the rest of my life while my investments grow?
My father told me when I was a little boy; you'll never get rich working for someone. Did I listen to him? No. But that doesn't mean getting a late start is bad. I can't wait till I retire. Investing is going to be my new hobby. Congrats on your success. Took a lot of courage to walk away from a good job.
guess what if she doesn’t have this channel she still going to find another source of passive income. Not working at her formal job. You need to stop putting other people down because you hate your life.
Thank you, Rose. This video is informative and helpful to the right audience. However, many people would like to get a 6 figure job FIRST, so they can eventually quit and apply all these helpful tips. I’ll ADD: -Keep your job. -BE A PERSON OF INTEGRITY -Invest wisely (Apply Rose’s advice) -Start a side business -EMBRACE A SPIRIT OF THANKSGIVING & -When that income replaces your job’s income (by at least 3x as much) then gracefully resign. 😉💡 Have a wonderful rest of your day. ☺️
Love this vid! Explains my sentiments in a nutshell as to how traditionally it has been ingrained on us to study, to get a job, and to work hard, and then only to find out that all of these are still not enough to get that sweet early retirement. I think financial education should be a part of our educational system.
so Rose, I'm 64...retiring soon, been listening to endless financial /investment podcast and your lates$100K Job UA-cam video has been the best income/taxes explainer I've ever heard. Thank you. So sorry I did not learn this sooner...So much wisdom from a young soul!
I love that Rose is one of the *FEMALE* finance gurus on youtube crushing it. I think it was an Asian-American thing to grow up...feel like you followed everything right to reach your dream life...and realize it actually sucks
(South) Asian here, its definitely a let down when you did everything your parents told you to do (study hard, get a good job, etc.) only to realize that the end goal isnt really as hype as it was thought to be.
Joy, Rose is great. But does she ever talk about what she was doing after 2015? It makes it a little easier to quit a $100K job when one can fall back on a relationship with a multimillionaire that is twice her age that she ended up marrying. That is a great investment by her!
@@danielkim672 It is possible she can do this. When I did this with my wife after we paid off two very small homes, we did clip a lot of internet coupons.
I spent years in college to the point of earning my master’s degree, and years “climbing up the corporate ladder.” Meanwhile my 22 year old brother barely graduated high school, started a simple “blue collar” business, works 3 days a week, and makes close to $200,000/year. 🤦🏻♂️ (risk = rewards). Now I’m trying to teach him how to make his earned income work for him through investments and how to avoid being taxed to hell.
last month my rental income and dividends were enough to cover my mortgage(1st time i’ve been able to do that even though i reinvested it). not enough to live on yet but it’s a start. also epstein didn’t kill himself.
@@Mexicobeanpole the argument isn't that his death makes the world better or not, but that it silenced a source of information for a larger network of corrupt and law-breaking members of society who have a disproportionate influence on and advantage over the rest of the public
A really good video, the earlier we realise that we as individuals need not just a single but multiple means of income the better. If these pandemic has taught me anything is that relying on just our paying jobs for income is a huge mistake because if we lose them we are left with zero means of income.
Am trying to beat the financial pressure surrounding me right now and am in need of a good investment I could hold for a long term or short term, that can make good returns on a monthly basis. Any tips would be gladly appreciate.
I've earned over $300k a year working remotely doing technology with multiple 40/hr billables but only working 40/hrs or less. All labor is not created equal and if it takes someone 5/hours to do what I can do in 1. This money was pretax to my business bank account as an independent contractor. So defer tax liability and invest as much as you can with some marginally return; 2% on $200k is better than 0%.
I have to say, being older, this is the only vid of yours that I've left feeling bad about myself. However, I am using your vids to help educate and redirect my kids and grandkids to do things differently.
@@epbrown01 taxation is also a way for the govt too overspend..it's like they have a endless credit card with limits they can exceed.. You see this by the dumb stuff we sometimes end up paying for.
I agree with you there, as a professional CPA, I've seen many investors and clients come to me asking how to reduce their tax burdens. One of the key pieces of advice I have is to show them how to diversify into tax efficient income.
Retired, receiving about 101k in dividends. I have been in the market about 30 years. Am I worried? Of course. Am I selling? Absolutely not. I have purchased stock a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding a little at a time. I am not going to panic. Your videos actually calm me down. It is difficult not to make emotional decisions in times like these. Eye on the prize, stay the course!
Yes it is, but the market can only go lower before going back up right? then I am on the right track by investing right now, although I am inexperienced, i am learning fast.
I wonder what the best opportunities to invest now are, there are opinions but a little later I find out these opinions dont matter as a totally different turn of events play out with the stocks they discussed therein.
what route did you take? how can one invest in the face of the pandemic? help. sounds like you got something going for you. I am new at investing and really want in
Dont just venture into the market in these times without consulting a professional. I began through the guidance of a financial consultant and within 2 years, I own 2homes in the United states and car dealership all with an investment capital of $150,000 so it is best to invest with the help of an expert
@@celiasmith8662 yup 100% correct. Capitalism needs obedient workers and this is not taught in K-12 for the reason of controlling the masses and the workforce.
School taught everyone about nutrition, fitness, and contraception, and THAT worked out great. Everyone would have *totally* listened if they taught finance!
To break it down further, there are 8 Income Streams: Earned, Profit, Capital Gains, Rental, Dividend, Residual, Interest, Royalty. Earned is still the worst type.
@@yeahgirl11 right oh my gosh, what would happen if all the restaraunt workers, nurses assistants, even doctors decided... No earning my income by going to work and helping my community is the worst? Some people over glorify isolating themselves behind a computer. I need my doctors, gas station employees, ect...
@@agood1 Lol, she never said jobs/working for others is bad. It's if you want to have more money, use your earned income to make other investments that make income with higher returns.
@@agood1 we need workers. but we dont have to be one. doctors is paid a lot more because theres demand. when demand get even more.. the salary will get even increase. it attracts immigrants doctors =) (welcome to the game, yes, even doctors want to retire early.. its not fun to see dead people everyday after decades).. a doctor profession is meant to be a vehicle to earn enough to start and then reach financial independent early. theres more to life than work and money... but you need money and TIME to enjoy most of them. profession cant give you both.
@@agood1 it is a dream pipe this guys are selling. Even the richest millionaires started with a job. Now the new kids think they will leave high school and just jump to some 'passive' income magically. they are in for a shock of their lives. Even the Donalds have jobs, and so do the Clintons...and the Kennedy ...and.. and..
Hi Rose, Thanks for the incredible videos! I’m a rebel myself and I question a lot of things. I actually was inspired by you and other creators here and decided to finally start a UA-cam channel. I would love to grow with the UA-cam community, and I’m looking forward to that.
I watched this video about 6 months ago and I just rewatched it and shared it with my kids. Your time = your life. No amount of money can buy back your time/ life. Thank you Rose!
You basically summed up everything that went through my mind in the last few years. Beautiful. I earned more money in the last 6 months on a stock (of a company called Fivver) than I earned in my job in the last 3 years.
@Trevor J Yes, I did. It was interesting. I have applied some of the topics already what she has taught in her videos. I wonder how much she has spent making her video presentations because I have video presentations myself on my page. It is somewhat time consuming.
Earned Income is definitely nice. There's a lack of fulfillment just getting free money (through a n inheritance, for example). Passive income is nice too though. I love earned income, but only because I love what I do :P.
We learn the world n people. By working .With my body n mind. There are some genius learn by numbers n data. Jealous. But can be dangerous. Individual values should be considered.
Generally speaking this is dangerous advice. I had my own business for 35 years and some years worked huge hours for short money with a lot of stress and enormous risk. Yes there are perks and write offs but don't confuse your business cash for your cash, it is not! You have to get that cash out and then you do pay income tax, SS, Match, Med, State etc. There are fees you wouldn't dream of as an employee; ins, accounting, legal, HR, Medical and on and on. I am not saying owning your own business is bad but it is no panacea either. This is a complicated topic and not a 15 minute UA-cam video to a wonderful life.
Agreed - my Dad, who was an entrepreneur, always said that if running your own business was easy, everyone would do it. It takes a lot of hard work, time, stress and effort - and often for not much payoff especially in the beginning.
the truth is, not everyone can run a business... but most importantly... NOT ALL BUSINESS is lucrative. One's business experience will really be different to another. I am lucky enough that I run a lucrative one (didnt know it was lucrative until after it ran couple years). Also, every business on the same size have to pay the same thing as their competitor (HR, accounting etc) so if your business biggest challenge is paying those... you dont earn enough margin =\ hard truth~
The term "Capital Gains Tax" used to scare me to death and I felt it was something to be avoided. This video really explained in a way I wish I had learned a long time ago.
I am so happy to find your channel!! I was getting tired of all of the finance dudes. You are so cool. Yay! As a woman learning more about $$, your content is inspiring! Thank you!
After 40+ years in my "Just Over Broke" I am retiring due to COVID-19. My $100K+ job also afforded my family to have almost "free" health insurance, low cost dental, vision, and life insurance for pennies for what it would cost in the market place over those many years. My job also affords me a small pension then there is Social Security and Medicare (with all its premiums which were "free" from my job). However, my rentals and IRA's will keep my mortgage and my two adult children's rents paid while they are out of jobs. I agree what the schools and colleges (unless you study money, banking, the Federal Reserve and tax law) don't teach, are doing a great disservice to the general public. On the other hand, until robots can collect the trash and harvest/transport food, make and fix cars and trucks, stock the store shelves, and hospitals have the Star Trek (original) machine that heals all that lie inside it, etc. a human is needed to provide these vital necessities and services to society.
True. The lack of employees will never be a problem though, because most are too lazy to do what she has done. This is great for industrious people, but plebs will be plebs regardless of the information and opportunities provided to them.
Its impossible to find a balance between it all. Its like a mom trying to balance btw being a super mom, clean the house and now due to covid, homeschool your kids lol something will always fall thru the cracks,you cant be awesome at all the things. But im leaning towards being awesome at that business owner, pay less taxes, income :-)
well that's why i refuse to work past 40h per week. most employers don't compensate past 40h in any way. my employer doesn't even allow me flex hours to come early and leave early. my boss was a boomer who worked 11-12 instead of the mandatory 9h. i stuck to my gun. please don't give in to putting in extra hours past office time.
"No amount of money is worth working and trading your time for" --> this should be a big poster! Very well said though, people constantly complain about their jobs (earned income) without any actions to create business/investment income and they spend their whole lives working for that paycheck. Would love to see a future video on the transition period between Wall Street and now, as well as the move from NYC to Denver! Great video as always 👏👏
That that to the surgeon who will save your life when you need emergency surgery, or the person who waits on your table at a business lunch. Such disrespect to people working and contributing to our communities with their physical presence. There is something special about that.
Wow this was such a good explanation of why we need more than just earned income. I’ve heard of investing and having passive income, personal businesses, etc before. But I’ve never had it broken down so well. Thank you so much for this video. I learned so much!
What you fail to highlight is that you'll need $2 million to invest in order to earn $100,000, assuming a modest 5% return. Most people don't have that type of capital, which is why they have jobs.
Tim P, investing in mutual funds often yields much more than 5%. Many of mine return 50-100%. Sometimes they go down, but I try to sell a portion when the market goes up, safely invest my profit, yet keep money in the game. So even when the market is bad, I have done safely tucked away. When the market goes back up, voila. Returns go back up. I’ve been doing this 35 years. I could quit my day job if I wanted, but I’m in the medical profession and like helping.
Okay Mr. negative complainy pants. Most don't have $2 million because they don't bring $2 million worth of value to the market place. We get paid for bringing value to the marketplace, if one brings little value one earns little ... When one creates a lot of value to the marketplace, one makes a lot. Most don't have that type of capital, "because" they have jobs.The richest people in the world have businesses not jobs for a reason which was a point she made in the video. Nothing wrong with a job but it's a hard, slow path to wealth due to tax friction and no leverage of time or money.
I love you gurl 🙏🙌💜 you’re telling us what we need to hear and I’m great full for it especially as a new grad trying to figure what to do next. Working for someone is not the way to go
A few things not addressed in the video. 1. The lower capital gains tax on investment income is really a secondary tax. Income tax was paid on the seed money (invested money) when it was earned from a job or business, or when it was inherited (inheritance tax). The person giving the inheritance paid taxes at three stages: income tax when he earned the money, investment taxes on any gains he made from that earned income, then estate tax when he passed the asset on to his heirs. 2. When you invest, you are supporting and providing capital to businesses. Which is why capital gains and dividends are taxed lower. 3. A business person takes all the risks, unlike employment wherein the employee is assured a paycheck and benefits, regardless of how the business does. A business requires capital and 24/7 dedication especially the early years and it is not uncommon that the owner himself does not make money during the first few years of a business. 4. Businesses create employment that the government can collect taxes from. Which is why tax laws support the business structure.
Loved that you said “now that you are aware” it made me start thinking of how to take the steps to turn my earned income into business income or investment income. Definitely gave me a lot of inspiration this morning-THANK YOU!!
IMO, earned income is a good starter for those who just started their career. To do business, you need capital and skills. To invest, you need money. Earned income gives you both, the start to accumulate fund and the experience to gain skills. Once you have both, you can start to move on to focus on business and investment. Anyway, thanks Rose for such informative video.
Couldn’t agree more!!! Got laid off last May. I will start my business next month using my earned income for five years. Half of it was used to buy two rental apartments. Soon, I will add investment income.
I agree. I think it can buy you time, and with that wealth accumulation, you have leverage to go after what you end up wanting more easily. Also, the resistance of feeling unfulfilled oftentimes can lead us to our true passions. I get afraid though that many don't crest that resistance to change, and simply get discouraged.
Good point. I'm 22 and make 15.10 an hour. I actually got my first ever job a month ago. I'm not in any debt, and I will graduate with BS in neuroscience in May 2021. I don't regret it and genuinely want to get a PhD and work in the field, but I'm also very interested in developing multiple streams of (passive) income so I can be financially stable! I don't need to be a millionaire, but I hope to make several hundreds of thousands so I can always have money when I need it. I received two paychecks so far, and while they are only several hundreds of dollars only, I plan to save them and invest them and will start doing so.
My son has high performance Autism and it hurts when I can't spend that much time with him because of my job and it is with the restaurant industry. Been at the same company for 5 years already capped based on salary with no likelihood of getting a promotion either. Passive income is something I'm already working on to get F.I.R.E and spend more time with my son. As you said time is very precious and it is more important than money.
@@Brucelee89896 Oh I will get there for sure because I have a merch store, investments, and my job. My goal is to be able to quit here in a couple of months if not sooner.
The tidbit about business taxation after expenses was a bit misleading. A better way to say this is that businesses are taxed on profit (revenue minus costs), not raw revenue. This makes sense and earned income does not come with costs to the individual.
Great points, enjoyed the video. I would add that the education that landed the high paying earned income job allowed you to get to where you are today though. I feel like you berated earned income a bit more than is justified. 20 years into an engineering career making more money annually in investment income than my earned income (depending on the year of course). Putting earned income to work for you is definitely the key point, whether that is via investments or business income. One other thing that jumped out to me was the comment about earned income tax rate vs. 21% business tax rate ... a person making $100k/year has an effective tax rate closer to 18% as earned income taxes are in tiers with marginal tax rate lower than the top tier tax rate you may pay on a portion of your income. I'm sure you know that but the way you covered that point will not be clear to many.
This is a great video Rose. While I agree that earned income is by far the worst from a tax perspective, I think there are a variety of other benefits to generating earned income that I wanted to highlight for your viewers. First, experience and quality of workmanship is often developed at this stage. At the start of your career, its often harder to build business income or investment income than it is earned income. For example, for business income, people want to see experience, testimonials, etc. before they give you the work. For investment income, you need a sizable portfolio to generate sufficient money to pay your expenses. Second, there is a risk of relying solely on business income without a fall back. For example, if a recession is to hit, businesses do get hurt and close down. Look at what this pandemic has done to many small businesses. Earned income at a fairly large company is slightly safer (especially if you're good at your job). Finally, I think generating both Investment and Business Income is great, but I think it can be done on top of employment income. I'm not sure if you were an Investment Banking Analyst or if you were on the buy side, but I work a similar job with long hours. I believe everyone can find pockets of time where we can build products for our businesses/work on a skill to improve our business services. Running my UA-cam channel on top of my work day often means I'm working 20 hour days, but because I'm passionate about YT, it feels less like work and more like a hobby. I think people trying to build business income should focus on a hobby that is monetizable with hard work. A bonus of earned income/having a job is that you can make amazing connections through your job/earned income that can help with your business income. My job often allows me to speak with numerous high ranking authorities on the buy side or I can get access to senior management of companies/stocks I want to cover on my channel. A final bonus is that in some earned income roles you can also access favourable equity options for little to no upfront capital! I'm sure Apple/MSFT/Tesla/etc. employees are happy about that. All in all, this was a fantastic video, but I just thought I'd share a counter argument for some people to consider before they run out to quit their jobs :). Keep up the great work Rose. - Shailen
Yes this was on my mind during this. People take this really way to far. A side hustle should be that, whether it grows or not, we still need people in our communities helping eachother and working.
@@agood1 Yup - I agree. Actually a bonus I forgot to mention was the people you can meet at work! Some of my good friends are people I've met at an hourly/salaried job. Of course, I could have just been very lucky with my work experience so far :). - Shailen
@@ValuedInvesting I think the overall message of this video is to be mindful of how you trade your time for money and how to achieve financial freedom so you can do as you wish with your. Having the freedom of choice as far as how you earn your money is a blessing not a lot of people have these days. For example if you are working a job because you love the job then the money wont really play too much of a role as far as you working that job. That is why achieving financial freedom is important because you will be able to make choices as far as how you want to spend your time rather than depend on a job you may not even like in order to live the life of your dreams.
1. depends on what type of business. my business actually rose. Also earned income... you can get fired too with or without recession. Now that we both agree, both have risk.. while the other dont trade time for money... the winner is obvious. top 100 richest people are not doing what they love or working for someone else. cheers
@@Jmanzanillomusic HI Jennifer - thanks for your perspective. I totally agree and I'm a huge proponent of financial freedom. Once you have developed a portfolio of sufficient size or have developed sufficient business income, and hedged against the risks as best you can, If you're unhappy with your work for the time you commit, it's time to either look for something else, or to quit and focus on your business income. My original comment was just focused on showcasing some of the additional synergies that can be achieved if you have (let's call it) a "positive/good" job bringing in earned income. I know in my personal life working for a prominent financial institution lends credibility to my name/experience, which helps lend credibility to my videos/analysis. The perfect example of someone who did this brilliantly is Warren Buffett and that's what helped him in the earlier parts of his career as a PM. - Shailen
Thanks for the advice and encouragement! Finally got my feet on the ground last year to start paying down debt and investing through my employer match 401k. Now I am looking at 2 of my hobbies to turn into part time businesses. I think this would be more of becoming self employed rather than employed by someone else... Which isn't exactly the unlimited earning potential you are talking about, but a step in the right direction. In the end I will probably have a big mix of income. Stable income through an employer, side income from these part time businesses, and hopefully roll that through to investment income. As things progress, move to working more for my businesses, and transition my stable income from my day job to investments. I will always work, I am wired to work. But I like the idea more and more of working for myself at my own pace rather than working a day job with set hours. My wife has a business, so I know it isn't all fun and games... But it is a lot more fun and games than what I am doing now! Lol
@guess what It's technically not welfare. Pretty sure that guy paid a shit load of money into the government system with his 6 figure job. The people who sit around collecting your money while having contributed nothing to society are the ones you should be angry about. That includes the elite who get welfare through bailouts.
When you broke down the taxes it finally clicked for me and it makes so much sense why business and investment income is better. I’ve really enjoyed watching your videos! Thank you for your insight and for making it easy to understand ☺️
I've learned a lot in just 16 minutes of my time watching you and I think this will have a great impact in my life. Thanks. I already have dividend earning stocks and will try to add more to it. I LOVE this video. Super thumbs up. I even recommended this to my wife and sister.
@@troyfullerton1809 As a beginner you don't need to trade for your self, all you need is a good broker that can help you and trade, so that you will make alot of profits
@@mariannavietti7437 I have been thinking of moving into forex investment, can you please assist me with some recommendations?.... I would really love to know how you handle your investment
@@davidepedone7975 Sara Miller is her name, she has been been in the forex market for years and gained lots of experience. I came across her on an investment magazine and you can get in touch with her on telegram @investwithmiller
Don't forget HEALTH INSURANCE! That is one of the major bonuses of earned income. (Yes I know you could get your own. But, this route seems more cost effective).
Not to mention retirement. I think earned income is a good way to get your life/career going so you have experience and a fall back. But don't stay in that loop, look for a way out like she says!
Risk risk risk! For a financial channel, you should at least mention the risk involved for each type of income. Businesses have high failure rate; investment income has it own risk involved (but at least you can control it). Earned income has the least risk out of the three as long as you are decent at your job. The best case scenario is to have all three types of income to diversify the risk. I agree with you that school should teach you more about these stuff, but it's really not to the schools' best of interest to teach kids that their college degree might not mean much... I think parents should teach their kids more about financial education, just like any other life skills.
What about all of the people that are currently laid off from Covid? Earned income isn’t fool proof and is very heavily taxed. Multiple streams of income is best
8 min & 30 sec into the video, already gotten more explained about taxes than any other video I've looked for tagged with dividend income / passive income, thumbs up!
Rose thanks for the great info made simple for everyone. Where were you in the 70s when I started investing probably not born yet??? I subscribed to money magazine and taught myself all the things you are sharing. I also chose Fidelity even back then they were the best. I am now 77 and quite comfortable financially thanks to a bull market and some strict saving choices. I now at my age don't need to take any risk so am in mostly cds and some bonds but love watching your very good info on different investment. I am still with Fidelity. Thanks again. Keep up the good work.
I can’t thank you enough for the content you put out and the delivery in which you do it. Binging your videos has helped me so much in giving me a direction and feeling more comfortable to make financial decisions. Your explanations are very clear and easy to understand and I don’t feel like what your saying is going totally over my head. I noticed on Instagram that you live in Denver which made me even more happy since I was born and raised here myself. So many blessings to you and your channel!
Was told this plan from my parents: good grades, undergrad, grad school, good stable job, get promotions BUT when does it stop? Dropped out of grad school and really fosucing on investment income!
P.S. We did rollover IRA's out of our retirement plans savings into a discount-no fee-brokerage, incurred NO tax consequences and entered the world of options investing. Best financial decision we have ever made. Our home is paid off, we are not limited to mutual funds like we were in traditional 401K and 403B plans and basically determine every week what we want to make. All by doing some research ahead of time and, when good candidates are found, set up short term trades (1-4 week in duration). And...I was able to continue working as well. Rollover IRA's do not require an employee to retire. Check your employer's retirement policies, though.
The caveat in order to prosper in business or investment income (passive income), is that you do have to work your ass off in order to acquire those. Earned income is still the best way to graduate to the other two. It’s not how much you make, it’s how much you keep.
One thing people don't know is, the key to success and a stable finance is through investment . Also invest as early as you can. Don't invest money youll need immediately . Diversify your portfolio take calculated risk then youll realize the joy in investment .
@Emmanuel Boob your right. I've got a lot of friends from work who always argue about what to invest in. In the end they don't agree on anything cause they are not assured what they want to invest in will pay off
There are a lot of credible platforms to invest in but I chose to invest in forex trading cause right now it's very profitable as market conditions are going higher and higher
@Doris O'conner I'll really love to invest heavily in forex. Can you send me Mr Haward number. I've got like $20k to invest at least I won't need the money any time soon.
Thank you so much for this video....I’m a six figures earned income guy, living in a city I don’t like, to work a job I don’t really want, so I can buy things I don’t really need.....I just really needed to hear this, so thank you again!🙏
Excellent explanation on the advantages of business income over earned income. Always impressed when someone can explain this topic with such clarity, great job.....
Mind blown with this video! Definitely have to shift my "income" going forward. Looking to create side hustles in the next year or two in order to reach FIRE sooner.
Thank you 🌹 for sharing. For the past few months i have suffered from enxiety trying to figure how to create and secure a future for my family. I think i finally figured it out! It is finding a mentor that could guide me in the right direction. So again thank you for sharing.
@5:00 "Qualified dividends are taxed at 15% in the lowest tax bracket..." ??? They are taxed at 0% on the lowest two tax brackets, not 15%. If you are single in 2020 and your taxable income is $0 to $9,875 your taxable income tax rate is 10% and your dividend income tax rate is 0%. If you are single in 2020 and your taxable income is $9,875 to $40,000 your taxable income tax rate is 12% and your dividend income tax rate is 0% Married in 2020 and your taxable income is $0 to $19,750 your taxable income tax rate is 10% and your dividend income tax rate is 0% Married in 2020 and your taxable income is $0 to $80,000 your taxable income tax rate is 12% and your dividend income tax rate is 0% You don't start paying taxes on your dividends until your taxable income is $40,001 as a single person or $80,001 as a couple. If you put the standard deduction back into those incomes, in other words gross income with no other deductions at all (like kids, 401K, IRA, medical expenses, etc) the minimum that you will earn before you start paying taxes on qualified dividends as a single person is $54,800 and $104,800 as a married couple. In other words, most people can have income tax free dividend income. I enjoy your videos, but this is a pretty large error. How did it happen? Income tax information can be found in seconds on the web or even your brokerage firm might have it on their website.
Thank you for posting this. I’m in that zero bracket and making strategic dividend picks to grow my dividends. When your income is low you have to start with small goals. My dividends currently pay my property taxes.
Hey rose. Just wanted to mention something and hopefully get your comment to it. We hear a lot people especially on UA-cam today, talking about all this financial education, REAL LIFE education and how to actually make money etc... And it will usually come along with some statement about how insignificant a college degree is. I just can't help but disagree with this approach because I'm sure that whatever field your studies were in, your college degree provided you with a lot of important knowledge and tools that you're using today to run your business and do the stuff you do. Of course financial education is very important and we all wish that we would get some practical knowledge in highschool. But that doesn't mean it has to come in place of a college degree, as long as your studying something of your interest of course...
Education is very valuable. I don't like how people who push 'wealth creation' discredit the acquisition of education. Education is power! You can have a degree and career and become wealthy. Often times it is the job we get due to having the required educational qualification (degree etc), that provides us with the starting capital. Having a degree and being wealthy aren't mutually exclusive. I will never regret my degree because it is serving me well!
Hi Rose, thank you soooo much for everything you're providing! Sincerely appreciate your time. Would it be possible to get a video on what various types of stocks and how their income/dividends are accomplished? (sorry if I didn't phrase that correctly)
Great info, but I read that most new businesses fail and most business owners work more than 40 hours a week. I actually decided to launch my freelance writing business this year. The lack of leads and rejection is discouraging but I’m hopeful.
Rose, in your dividend example, you made about $20 that quarter. I would imagine that came from an investment of about $30k in large cap stocks. If you want to use that $20, then the stocks can’t be in a 401k. So, it doesn’t look like a good use of $30k spare cash.
actually, there are five types of incomes 1. earned income including your investments or businesses. 2. inherited income 3. marriage income 4. gamble income (lottery etc) 5. rob the bank income (any illegal sources).
Anyone else confused on how to actually generate investment income? Everything I see is geared towards retirement (I have a 401(k) and Roth IRA already!)
Even though I agree. There are ways to claim lower income if you're earning is high by utilizing 401K and HSA. You can defer taxes and invest your money from both accounts :) For those who are not aware about 401K match stipulation. Employers will not talk about this but you have to make sure you read the 401K match policy. Employer will offer the match but it's not technically yours until you work there for a certain minimum amount of year. Their match amount will show up on your account but once you quit, the money will disappear if do not meet their condition. Just something that I want to share :)
The real problem is that businesses sometimes fail or take a long time to start making a profit and there's lots of risk in hoarding stocks because the market can crash.also..you have to first earn income to start a business or buy stocks unless of course you get a large inheritance...so I wouldn't say that schools are are wrong to only teach us how to earn an income
i absolutely agreed with you there. especially with the current state of affairs buying stocks is the equivalent to gambling online. i wouldn't preach others to invest or put money into anything when we are close to record high stock market. investing in yourself make sure you have money for the cold winter and a roof over your head food on your table. having a job is actually the most practical position to be in at the moment let your boss shelter the risks. at least that is secured given the pandemic is not going anywhere any time soon. i run 3 in types of businesses food / entertainment types and two of them have gone under because of rent / lease my employees were crying as we were closing our shops down. the overheads, the physical distancing and tourism industy can wipe you out. i'm not trying to be a negative bag here but reality is it is a lot tougher out here.
Some divindens stock from big companies which we call to big to fail, would you lose them in an eventual crash? I read and searched they stay intact but they get hit but never dies.
I recently turned my hobby into a side business. I get so excited when I earn even just $50 from a sale vs. when I earn $50 through my hourly job. There is definitely a rewarding feeling that comes from selling something you created and it inspires me to think bigger about how I earn money in my life.
When your side hustles make more money than your job you’ll be on your path to financial freedom🙌🏿
YES! That’s the plan!
Until it fails 😂
@@moolipit like getting hit with a pandemic :/ lol
Financial freedom? Let me share a big laugh with you. As long as you are still making-money, you're not financial free. Ask yourself this question, what happens when you stop making anymore money, whether passive or active?
To me, financial freedom is when you no longer need income (make money).
@@oscarore5520 Earned Income also got hit via pandemic just as business and side hustle... And both get unemployment right now so.....
Also, you don't fire yourself, you can just adapt and cover your own costs and keep it going. You give yourself the job you don't worry if you have one to go back too.
ALSO - believe it or not, some businesses are doing better due to the pandemic. (I am involved one such and am aware of others.)
So the question is one of opportunities.
You can also invest in the entire network of businesses via the stock market dividend bearing index fund with some of your business income.
There are of course other diversifications.
But ultimately you need to leave sight of the shore you are on and get those adaptive mechanisms to learn how to overcome the fears of failure that may, or may not - be founded.
But if you don't gain momentum through progress and just stay Doomer - you won't get those benefits that you can leverage to overcome circumstances.
The one thing no one tells you is you still have to become an employee before you get financial freedom. Because no business is free to start. You need money to start and where do you get money, a job!
Exactly
Actully she mentioned that u start with earned income...
where to get money = be self employed, specifically on the internet
Here is one example of making tons of money with zero money invested: wholesaling real estate. Many have been able to start their business with literally no money to begin with. Where there is a will, there is a way, which is what she is trying to get at here. If you haven't read Rich Dad, Poor Dad, I highly recommend it. She is getting most of her points here from that book.
So true
Almost slipped there. "Lunches and dinners with frrrr....customers..." lol
Frrrr became perspective customers 😁
Lmao I read this before Rose mentioned it, but now I get it! 😂😂😂
haha I heard that too
Nothing worse than getting customer-zoned!
Haha heard it as well lmao
I loved "Get creative" and "Don't make excuses, because I know you have it in you."
"Spent most of my waking hours at work." - Yup, been doing that for over 15 years. Missed birthdays, anniversaries, trips, travel...I'm just working so that when I'm too old to move, I have some money. Working 10-12 hour days at a stressful job for people who couldn't care less if you dropped dead or are miserable.
Why did you not change your situation? It sounds completely horrible
@@PierreLaBaguette Bills to pay. Probably not going to find another job making similar money. But I did change my situation and have a new job now, it's still long hard hours, but not as bad.
Quitting one's job has become a fad these days.Most people think that if you want to be rich you should start a business.Why not keep your job and start a side hustle? Working gives you a lot of experience about business matters and provides you a safety cushion.Stop portraying work as a negative thing.Keep your job and start a side business, the key is to have multiple sources of income.
the reason why ppl quite their and start their business is to get freedom if it's not something you wish for , stay at your job
If one like their job, they wouldn't think of it as restraining their freedom.Do what you love and want to pursue, then you will come to love your job and won't want to quit it.If you love your job then why quit!!Don't do what you do not love!!Then there will be no lack of freedom....
@@fatisummer9106 Most succesful businessmen put in 16-18 hrs a day,don't think that just bcoz you are a business owner you will be free....they are the most hard pressed for time.If you want true freedom you should do what you love and pursue your passion....not by stopping working!!Whether you are in a job or running a business you need to work in some form!!Don't be a lazy unproductive bum who wants to sit around and do nothing all day!!
Agree.. it is not necessary to quit your job to achieve financial freedom. It's about increasing income, reducing expenses and investing wisely using that additional income. Side hustles are a way to achieve that. The experience gained from working gives you the skills you need to earn even more money in the future, be it getting a higher paying job, or starting out your own business.
@@fatisummer9106 some people enjoy their 9-5 jobs so stop saying is bad
Probably the clearest breakdown and explanation I’ve heard. I had a $100k job - but was taxed heavily. Thank you sooo much Rose
I was totally inspired by you Rose, opened my Roth IRA at fidelity. I know more about IRA, 401K that I can explain to my kids but I am missing your videos. I hope you are doing alright. God bless.
I made $100k/year doing IT support for traders. And I have a pretty chill job. My side hustle is trading stocks.
I just cannot see myself working for someone else for the next 40 years, so I'm definitely working towards the same thing. Congrats Rose on all your success!
@Investing With Rose will you just be posting and also interacting with the what's app group?
@Investing With Rose LMAO this looks like a fake account to trick and scam the naive
@@aim-for-greatn3z947 a post from the real channel would have a border around the channel's name
Never lose sleep over the small stuff I’m in South Asia .. lol .. we can really stretch the dollar
@Never lose sleep over the small stuff i guess i'll work for five years and save. live like a king in se asia the rest of my life while my investments grow?
My father told me when I was a little boy; you'll never get rich working for someone. Did I listen to him? No. But that doesn't mean getting a late start is bad. I can't wait till I retire. Investing is going to be my new hobby. Congrats on your success. Took a lot of courage to walk away from a good job.
Not everyone can or should work for themselves. I'm tired of hearing that. It's not plausible.
guess what if she doesn’t have this channel she still going to find another source of passive income. Not working at her formal job. You need to stop putting other people down because you hate your life.
Thank you, Rose.
This video is informative and helpful to the right audience.
However, many people would like to get a 6 figure job FIRST, so they can eventually quit and apply all these helpful tips.
I’ll ADD:
-Keep your job.
-BE A PERSON OF INTEGRITY
-Invest wisely (Apply Rose’s advice)
-Start a side business
-EMBRACE A SPIRIT OF THANKSGIVING
&
-When that income replaces your job’s income (by at least 3x as much) then gracefully resign. 😉💡
Have a wonderful rest of your day. ☺️
Love this vid! Explains my sentiments in a nutshell as to how traditionally it has been ingrained on us to study, to get a job, and to work hard, and then only to find out that all of these are still not enough to get that sweet early retirement. I think financial education should be a part of our educational system.
so Rose, I'm 64...retiring soon, been listening to endless financial /investment podcast and your lates$100K Job UA-cam video has been the best income/taxes explainer I've ever heard. Thank you.
So sorry I did not learn this sooner...So much wisdom from a young soul!
I love that Rose is one of the *FEMALE* finance gurus on youtube crushing it. I think it was an Asian-American thing to grow up...feel like you followed everything right to reach your dream life...and realize it actually sucks
(South) Asian here, its definitely a let down when you did everything your parents told you to do (study hard, get a good job, etc.) only to realize that the end goal isnt really as hype as it was thought to be.
yeah asians are pushed towards being smart by their parents and then the stereotypes from society continue to enforce it.
I think many Asians and Asian-Americans need to listen to her. You are correct, Ms. Joy.
Joy, Rose is great. But does she ever talk about what she was doing after 2015? It makes it a little easier to quit a $100K job when one can fall back on a relationship with a multimillionaire that is twice her age that she ended up marrying. That is a great investment by her!
@@danielkim672 It is possible she can do this. When I did this with my wife after we paid off two very small homes, we did clip a lot of internet coupons.
I spent years in college to the point of earning my master’s degree, and years “climbing up the corporate ladder.” Meanwhile my 22 year old brother barely graduated high school, started a simple “blue collar” business, works 3 days a week, and makes close to $200,000/year. 🤦🏻♂️ (risk = rewards).
Now I’m trying to teach him how to make his earned income work for him through investments and how to avoid being taxed to hell.
combine your efforts and your smarts, and you will both be rich
Damn that’s a beautiful story. You’re also a Beautiful Guy :)
Wow very impressive! Glad to see you’re working together 😉
"started a simple “blue collar” business, works 3 days a week, and makes close to $200,000/year." Care to say what this 'blue collar' business is ?
Nice story. I agree if you combine your lessons learned and what you are good at, you'll do great. 💰😎👍
last month my rental income and dividends were enough to cover my mortgage(1st time i’ve been able to do that even though i reinvested it). not enough to live on yet but it’s a start. also epstein didn’t kill himself.
Brent Talbert
😂😂”Epstein didn’t kill himself.”👍🏾Agree
😂 good for you, that’s very exciting. Seems like you’re almost self sufficient 😄
Nice! No, Epstein didn’t kill himself, but who cares, the world’s a better place without him.
@@Mexicobeanpole the argument isn't that his death makes the world better or not, but that it silenced a source of information for a larger network of corrupt and law-breaking members of society who have a disproportionate influence on and advantage over the rest of the public
@Satoshi Analysis taxation is infrastructure. incompetent and bloated bureaucracy is borderline criminal, though
A really good video, the earlier we realise that we as individuals need not just a single but multiple means of income the better. If these pandemic has taught me anything is that relying on just our paying jobs for income is a huge mistake because if we lose them we are left with zero means of income.
I totally agree that what happened to millions of Americans.
Covid19 is an eye opener and challenges us to do better financially.
Hope a vaccine is found in time so the world can return to normalcy.
@@brianrosetti4684 not just American the rest of the world also.
Am trying to beat the financial pressure surrounding me right now and am in need of a good investment I could hold for a long term or short term, that can make good returns on a monthly basis. Any tips would be gladly appreciate.
I've earned over $300k a year working remotely doing technology with multiple 40/hr billables but only working 40/hrs or less. All labor is not created equal and if it takes someone 5/hours to do what I can do in 1. This money was pretax to my business bank account as an independent contractor. So defer tax liability and invest as much as you can with some marginally return; 2% on $200k is better than 0%.
I have to say, being older, this is the only vid of yours that I've left feeling bad about myself. However, I am using your vids to help educate and redirect my kids and grandkids to do things differently.
@Satoshi Analysis Taxation is how we pay for a civilized society.
@@epbrown01 taxation is also a way for the govt too overspend..it's like they have a endless credit card with limits they can exceed.. You see this by the dumb stuff we sometimes end up paying for.
@Satoshi Analysis taxed to death…..
I agree with you there, as a professional CPA, I've seen many investors and clients come to me asking how to reduce their tax burdens. One of the key pieces of advice I have is to show them how to diversify into tax efficient income.
Hi handsome
Retired, receiving about 101k in dividends. I have been in the market about 30 years. Am I worried? Of course. Am I selling? Absolutely not. I have purchased stock a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding a little at a time. I am not going to panic. Your videos actually calm me down. It is difficult not to make emotional decisions in times like these. Eye on the prize, stay the course!
Yes it is, but the market can only go lower before going back up right? then I am on the right track by investing right now, although I am inexperienced, i am learning fast.
I wonder what the best opportunities to invest now are, there are opinions but a little later I find out these opinions dont matter as a totally different turn of events play out with the stocks they discussed therein.
what route did you take? how can one invest in the face of the pandemic? help. sounds like you got something going for you. I am new at investing and really want in
Dont just venture into the market in these times without consulting a professional. I began through the guidance of a financial consultant and within 2 years, I own 2homes in the United states and car dealership all with an investment capital of $150,000 so it is best to invest with the help of an expert
Everything you said sounds pretty apt. I need some advice. please who is your financial consultant and how can i get in touch?
I sincerely hope you’re ok. If you just need a break from all thing digital, that’s understandable too. Wishing you peace and safety
What happened?
Yep, super well explained. I'll be sharing this with friends
@@thebearablebull3749 I’m trying to invest some of this love with rose 😻
It’s sad that schools and colleges don’t bother teaching students about life skills, money, etc. Work smarter, not harder folks.
The conditioning is for a reason, so we all don't become rich and the system can exploit our labour.
@@celiasmith8662 yup 100% correct. Capitalism needs obedient workers and this is not taught in K-12 for the reason of controlling the masses and the workforce.
well, we have You Tube now!
yeah schools only teach kids to hate America and to be racist to white people
School taught everyone about nutrition, fitness, and contraception, and THAT worked out great. Everyone would have *totally* listened if they taught finance!
To break it down further, there are 8 Income Streams: Earned, Profit, Capital Gains, Rental, Dividend, Residual, Interest, Royalty.
Earned is still the worst type.
Why is earned income the worst type?
@@yeahgirl11 right oh my gosh, what would happen if all the restaraunt workers, nurses assistants, even doctors decided... No earning my income by going to work and helping my community is the worst? Some people over glorify isolating themselves behind a computer. I need my doctors, gas station employees, ect...
@@agood1 Lol, she never said jobs/working for others is bad. It's if you want to have more money, use your earned income to make other investments that make income with higher returns.
@@agood1 we need workers. but we dont have to be one. doctors is paid a lot more because theres demand. when demand get even more.. the salary will get even increase. it attracts immigrants doctors =) (welcome to the game, yes, even doctors want to retire early.. its not fun to see dead people everyday after decades).. a doctor profession is meant to be a vehicle to earn enough to start and then reach financial independent early. theres more to life than work and money... but you need money and TIME to enjoy most of them. profession cant give you both.
@@agood1 it is a dream pipe this guys are selling. Even the richest millionaires started with a job. Now the new kids think they will leave high school and just jump to some 'passive' income magically. they are in for a shock of their lives. Even the Donalds have jobs, and so do the Clintons...and the Kennedy ...and.. and..
Hi Rose,
Thanks for the incredible videos! I’m a rebel myself and I question a lot of things. I actually was inspired by you and other creators here and decided to finally start a UA-cam channel. I would love to grow with the UA-cam community, and I’m looking forward to that.
I watched this video about 6 months ago and I just rewatched it and shared it with my kids. Your time = your life. No amount of money can buy back your time/ life. Thank you Rose!
You basically summed up everything that went through my mind in the last few years. Beautiful. I earned more money in the last 6 months on a stock (of a company called Fivver) than I earned in my job in the last 3 years.
@HIRO It wouldn't sound so sad to you if you new how much I make for a living.. thanks though..
@HIRO No. It is the first time I heard about them... I will check it out...
Congrats quitting your job Rose! I love how you demystify a lot of money myths! Keep these videos coming 👌
“Earned income is the worst type of income.” Who else agrees? 🙋♀️
Yes and no. You need earned income to get the investment and business income. It is a start. Overall, you may be right.
@Trevor J Yes, I did. It was interesting. I have applied some of the topics already what she has taught in her videos. I wonder how much she has spent making her video presentations because I have video presentations myself on my page. It is somewhat time consuming.
I don't know what the worst type of income is, but the best kind of income is that which you pay to yourself.
Earned Income is definitely nice. There's a lack of fulfillment just getting free money (through a n inheritance, for example). Passive income is nice too though. I love earned income, but only because I love what I do :P.
We learn the world n people.
By working .With my body n mind.
There are some genius learn by numbers n data. Jealous.
But can be dangerous.
Individual values should be considered.
Generally speaking this is dangerous advice. I had my own business for 35 years and some years worked huge hours for short money with a lot of stress and enormous risk. Yes there are perks and write offs but don't confuse your business cash for your cash, it is not! You have to get that cash out and then you do pay income tax, SS, Match, Med, State etc. There are fees you wouldn't dream of as an employee; ins, accounting, legal, HR, Medical and on and on. I am not saying owning your own business is bad but it is no panacea either. This is a complicated topic and not a 15 minute UA-cam video to a wonderful life.
Thank you for this comment. Not everyone can or should start their own business!
I agree. But if your business is just yourself, you don't need HR etc.
Her audience is mainly young people in their 20s and 30s who have the energy to start and run a business.
Agreed - my Dad, who was an entrepreneur, always said that if running your own business was easy, everyone would do it. It takes a lot of hard work, time, stress and effort - and often for not much payoff especially in the beginning.
the truth is, not everyone can run a business... but most importantly... NOT ALL BUSINESS is lucrative. One's business experience will really be different to another. I am lucky enough that I run a lucrative one (didnt know it was lucrative until after it ran couple years). Also, every business on the same size have to pay the same thing as their competitor (HR, accounting etc) so if your business biggest challenge is paying those... you dont earn enough margin =\ hard truth~
The term "Capital Gains Tax" used to scare me to death and I felt it was something to be avoided. This video really explained in a way I wish I had learned a long time ago.
I am so happy to find your channel!! I was getting tired of all of the finance dudes. You are so cool. Yay! As a woman learning more about $$, your content is inspiring! Thank you!
After 40+ years in my "Just Over Broke" I am retiring due to COVID-19. My $100K+ job also afforded my family to have almost "free" health insurance, low cost dental, vision, and life insurance for pennies for what it would cost in the market place over those many years. My job also affords me a small pension then there is Social Security and Medicare (with all its premiums which were "free" from my job). However, my rentals and IRA's will keep my mortgage and my two adult children's rents paid while they are out of jobs. I agree what the schools and colleges (unless you study money, banking, the Federal Reserve and tax law) don't teach,
are doing a great disservice to the general public. On the other hand, until robots can collect the
trash and harvest/transport food, make and fix cars and trucks, stock the store shelves, and hospitals have the Star Trek (original) machine that heals all that lie inside it, etc. a human is needed to provide these vital necessities and services to society.
True. The lack of employees will never be a problem though, because most are too lazy to do what she has done. This is great for industrious people, but plebs will be plebs regardless of the information and opportunities provided to them.
It’s all a balance between finding the right income, a good enough job, and make enough money to pursue your passions!
INVEST, ALWAYS INVEST
Its impossible to find a balance between it all. Its like a mom trying to balance btw being a super mom, clean the house and now due to covid, homeschool your kids lol something will always fall thru the cracks,you cant be awesome at all the things. But im leaning towards being awesome at that business owner, pay less taxes, income :-)
Hey thank you for all of your help with investing your awesome as hell
well that's why i refuse to work past 40h per week. most employers don't compensate past 40h in any way. my employer doesn't even allow me flex hours to come early and leave early. my boss was a boomer who worked 11-12 instead of the mandatory 9h. i stuck to my gun. please don't give in to putting in extra hours past office time.
Investing With Rose what is the number please
"No amount of money is worth working and trading your time for" --> this should be a big poster! Very well said though, people constantly complain about their jobs (earned income) without any actions to create business/investment income and they spend their whole lives working for that paycheck. Would love to see a future video on the transition period between Wall Street and now, as well as the move from NYC to Denver! Great video as always 👏👏
That that to the surgeon who will save your life when you need emergency surgery, or the person who waits on your table at a business lunch. Such disrespect to people working and contributing to our communities with their physical presence. There is something special about that.
Love the wisdom Mr. Chang😜👍
@@mindleaves Hahaha thank you Minika! I'm surprised you found me on Rose's video 😅
Wow this was such a good explanation of why we need more than just earned income. I’ve heard of investing and having passive income, personal businesses, etc before. But I’ve never had it broken down so well. Thank you so much for this video. I learned so much!
Spot on advice I'm shocked this hasn't been taken down yet.
@InvestingWithRose can you invest my money for me idc if you make money and also may I marry you.. 💍
What you fail to highlight is that you'll need $2 million to invest in order to earn $100,000, assuming a modest 5% return. Most people don't have that type of capital, which is why they have jobs.
Exactly.
No videos go into numbers like that
Tim P, investing in mutual funds often yields much more than 5%. Many of mine return 50-100%. Sometimes they go down, but I try to sell a portion when the market goes up, safely invest my profit, yet keep money in the game. So even when the market is bad, I have done safely tucked away. When the market goes back up, voila. Returns go back up. I’ve been doing this 35 years. I could quit my day job if I wanted, but I’m in the medical profession and like helping.
Okay Mr. negative complainy pants. Most don't have $2 million because they don't bring $2 million worth of value to the market place. We get paid for bringing value to the marketplace, if one brings little value one earns little ... When one creates a lot of value to the marketplace, one makes a lot. Most don't have that type of capital, "because" they have jobs.The richest people in the world have businesses not jobs for a reason which was a point she made in the video. Nothing wrong with a job but it's a hard, slow path to wealth due to tax friction and no leverage of time or money.
Nobody is saying you can get rich making zero risk 5% investments. Dummy.
The $2M isn't the issue for most people. It's the patience to get there.
Rose!!!! Where are you??? I miss your weekly videos!
I love you gurl 🙏🙌💜 you’re telling us what we need to hear and I’m great full for it especially as a new grad trying to figure what to do next. Working for someone is not the way to go
A few things not addressed in the video.
1. The lower capital gains tax on investment income is really a secondary tax. Income tax was paid on the seed money (invested money) when it was earned from a job or business, or when it was inherited (inheritance tax). The person giving the inheritance paid taxes at three stages: income tax when he earned the money, investment taxes on any gains he made from that earned income, then estate tax when he passed the asset on to his heirs.
2. When you invest, you are supporting and providing capital to businesses. Which is why capital gains and dividends are taxed lower.
3. A business person takes all the risks, unlike employment wherein the employee is assured a paycheck and benefits, regardless of how the business does. A business requires capital and 24/7 dedication especially the early years and it is not uncommon that the owner himself does not make money during the first few years of a business.
4. Businesses create employment that the government can collect taxes from. Which is why tax laws support the business structure.
Good post. This video is actually predatory if you read between the lines.
@@dennismicallef9350 wanna elaborate on your claim? I'd be curious about your arguments. she feels manipulative to me
Loved that you said “now that you are aware” it made me start thinking of how to take the steps to turn my earned income into business income or investment income.
Definitely gave me a lot of inspiration this morning-THANK YOU!!
IMO, earned income is a good starter for those who just started their career. To do business, you need capital and skills. To invest, you need money. Earned income gives you both, the start to accumulate fund and the experience to gain skills. Once you have both, you can start to move on to focus on business and investment.
Anyway, thanks Rose for such informative video.
Couldn’t agree more!!! Got laid off last May. I will start my business next month using my earned income for five years. Half of it was used to buy two rental apartments. Soon, I will add investment income.
I agree. I think it can buy you time, and with that wealth accumulation, you have leverage to go after what you end up wanting more easily. Also, the resistance of feeling unfulfilled oftentimes can lead us to our true passions. I get afraid though that many don't crest that resistance to change, and simply get discouraged.
Good point. I'm 22 and make 15.10 an hour. I actually got my first ever job a month ago. I'm not in any debt, and I will graduate with BS in neuroscience in May 2021. I don't regret it and genuinely want to get a PhD and work in the field, but I'm also very interested in developing multiple streams of (passive) income so I can be financially stable! I don't need to be a millionaire, but I hope to make several hundreds of thousands so I can always have money when I need it. I received two paychecks so far, and while they are only several hundreds of dollars only, I plan to save them and invest them and will start doing so.
My son has high performance Autism and it hurts when I can't spend that much time with him because of my job and it is with the restaurant industry. Been at the same company for 5 years already capped based on salary with no likelihood of getting a promotion either. Passive income is something I'm already working on to get F.I.R.E and spend more time with my son. As you said time is very precious and it is more important than money.
wow sorry to hear that, hopefully you can have alot of free time later on
@@Brucelee89896 Oh I will get there for sure because I have a merch store, investments, and my job. My goal is to be able to quit here in a couple of months if not sooner.
Wow! in the first five minutes you just taught me about earned income and more than I was ever taught in school and college. Thank you!
That's a Robert Kiyosaki thing isn't it? Earned income...heavily taxed. Investment income...not heavily taxed. Poor...no time. Rich...time to waste. Message can't be emphasized enough.
Wow someone tried to impersonate rose, By creating fake account how low can people go
Investing With Rose Is this your whats app?
The tidbit about business taxation after expenses was a bit misleading. A better way to say this is that businesses are taxed on profit (revenue minus costs), not raw revenue. This makes sense and earned income does not come with costs to the individual.
Great points, enjoyed the video. I would add that the education that landed the high paying earned income job allowed you to get to where you are today though. I feel like you berated earned income a bit more than is justified. 20 years into an engineering career making more money annually in investment income than my earned income (depending on the year of course). Putting earned income to work for you is definitely the key point, whether that is via investments or business income. One other thing that jumped out to me was the comment about earned income tax rate vs. 21% business tax rate ... a person making $100k/year has an effective tax rate closer to 18% as earned income taxes are in tiers with marginal tax rate lower than the top tier tax rate you may pay on a portion of your income. I'm sure you know that but the way you covered that point will not be clear to many.
This is a great video Rose. While I agree that earned income is by far the worst from a tax perspective, I think there are a variety of other benefits to generating earned income that I wanted to highlight for your viewers.
First, experience and quality of workmanship is often developed at this stage. At the start of your career, its often harder to build business income or investment income than it is earned income. For example, for business income, people want to see experience, testimonials, etc. before they give you the work. For investment income, you need a sizable portfolio to generate sufficient money to pay your expenses.
Second, there is a risk of relying solely on business income without a fall back. For example, if a recession is to hit, businesses do get hurt and close down. Look at what this pandemic has done to many small businesses. Earned income at a fairly large company is slightly safer (especially if you're good at your job).
Finally, I think generating both Investment and Business Income is great, but I think it can be done on top of employment income. I'm not sure if you were an Investment Banking Analyst or if you were on the buy side, but I work a similar job with long hours. I believe everyone can find pockets of time where we can build products for our businesses/work on a skill to improve our business services. Running my UA-cam channel on top of my work day often means I'm working 20 hour days, but because I'm passionate about YT, it feels less like work and more like a hobby. I think people trying to build business income should focus on a hobby that is monetizable with hard work.
A bonus of earned income/having a job is that you can make amazing connections through your job/earned income that can help with your business income. My job often allows me to speak with numerous high ranking authorities on the buy side or I can get access to senior management of companies/stocks I want to cover on my channel.
A final bonus is that in some earned income roles you can also access favourable equity options for little to no upfront capital! I'm sure Apple/MSFT/Tesla/etc. employees are happy about that. All in all, this was a fantastic video, but I just thought I'd share a counter argument for some people to consider before they run out to quit their jobs :). Keep up the great work Rose.
- Shailen
Yes this was on my mind during this. People take this really way to far. A side hustle should be that, whether it grows or not, we still need people in our communities helping eachother and working.
@@agood1 Yup - I agree. Actually a bonus I forgot to mention was the people you can meet at work! Some of my good friends are people I've met at an hourly/salaried job. Of course, I could have just been very lucky with my work experience so far :).
- Shailen
@@ValuedInvesting I think the overall message of this video is to be mindful of how you trade your time for money and how to achieve financial freedom so you can do as you wish with your. Having the freedom of choice as far as how you earn your money is a blessing not a lot of people have these days. For example if you are working a job because you love the job then the money wont really play too much of a role as far as you working that job. That is why achieving financial freedom is important because you will be able to make choices as far as how you want to spend your time rather than depend on a job you may not even like in order to live the life of your dreams.
1. depends on what type of business. my business actually rose. Also earned income... you can get fired too with or without recession. Now that we both agree, both have risk.. while the other dont trade time for money... the winner is obvious. top 100 richest people are not doing what they love or working for someone else. cheers
@@Jmanzanillomusic HI Jennifer - thanks for your perspective. I totally agree and I'm a huge proponent of financial freedom. Once you have developed a portfolio of sufficient size or have developed sufficient business income, and hedged against the risks as best you can, If you're unhappy with your work for the time you commit, it's time to either look for something else, or to quit and focus on your business income. My original comment was just focused on showcasing some of the additional synergies that can be achieved if you have (let's call it) a "positive/good" job bringing in earned income. I know in my personal life working for a prominent financial institution lends credibility to my name/experience, which helps lend credibility to my videos/analysis. The perfect example of someone who did this brilliantly is Warren Buffett and that's what helped him in the earlier parts of his career as a PM.
- Shailen
Thanks for the advice and encouragement!
Finally got my feet on the ground last year to start paying down debt and investing through my employer match 401k. Now I am looking at 2 of my hobbies to turn into part time businesses. I think this would be more of becoming self employed rather than employed by someone else... Which isn't exactly the unlimited earning potential you are talking about, but a step in the right direction.
In the end I will probably have a big mix of income. Stable income through an employer, side income from these part time businesses, and hopefully roll that through to investment income. As things progress, move to working more for my businesses, and transition my stable income from my day job to investments.
I will always work, I am wired to work. But I like the idea more and more of working for myself at my own pace rather than working a day job with set hours. My wife has a business, so I know it isn't all fun and games... But it is a lot more fun and games than what I am doing now! Lol
The exact reasons why I quit my own 6-figure job (Just Over Broke hah) as a digital marketing manager. Have never looked back since.
@guess what and why does that bother you?
@guess what It's technically not welfare. Pretty sure that guy paid a shit load of money into the government system with his 6 figure job. The people who sit around collecting your money while having contributed nothing to society are the ones you should be angry about. That includes the elite who get welfare through bailouts.
Violet Haye
It’s a Troll, don’t “feed” it.
How is earning a 6 figure income just over broke? There are people that live off of $30 -$40,000 a year
guess what He’s actually not sitting at home collecting welfare - he’s an entrepreneur!
Rose, we all hope you are okay ❤️
When you broke down the taxes it finally clicked for me and it makes so much sense why business and investment income is better. I’ve really enjoyed watching your videos! Thank you for your insight and for making it easy to understand ☺️
the hardest part is when u get out of school u still broke asf. can't start on the business/investment income aspect without any money/experience
Side hustles! I used to sell used board games on Amazon for great profit. It helped me start my business which is now my full-time job.
I've learned a lot in just 16 minutes of my time watching you and I think this will have a great impact in my life. Thanks. I already have dividend earning stocks and will try to add more to it. I LOVE this video. Super thumbs up. I even recommended this to my wife and sister.
You’re the financial adviser/mentor/life coach I never knew I needed!
I don't think that thier is any other legitimate way to earn money nowadays rather than investing
I'm seeking a way to make money of trading a few thousand dollars in forex trade?
@@troyfullerton1809 As a beginner you don't need to trade for your self, all you need is a good broker that can help you and trade, so that you will make alot of profits
@@troyfullerton1809 Actually a professional trader handles my forex investments while I invest in some real estate with the profit I make
@@mariannavietti7437 I have been thinking of moving into forex investment, can you please assist me with some recommendations?.... I would really love to know how you handle your investment
@@davidepedone7975 Sara Miller is her name, she has been been in the forex market for years and gained lots of experience. I came across her on an investment magazine and you can get in touch with her on telegram @investwithmiller
Good stuff! Thanks for making it so simple!
Don't forget HEALTH INSURANCE! That is one of the major bonuses of earned income. (Yes I know you could get your own. But, this route seems more cost effective).
Not to mention retirement. I think earned income is a good way to get your life/career going so you have experience and a fall back. But don't stay in that loop, look for a way out like she says!
My health insurance barely covers anything but is way better than buy it on my own
depends on where and if you work full time, you don't always get insurance if you work part time.
Risk risk risk! For a financial channel, you should at least mention the risk involved for each type of income. Businesses have high failure rate; investment income has it own risk involved (but at least you can control it). Earned income has the least risk out of the three as long as you are decent at your job. The best case scenario is to have all three types of income to diversify the risk. I agree with you that school should teach you more about these stuff, but it's really not to the schools' best of interest to teach kids that their college degree might not mean much... I think parents should teach their kids more about financial education, just like any other life skills.
What about all of the people that are currently laid off from Covid?
Earned income isn’t fool proof and is very heavily taxed. Multiple streams of income is best
If only this were true, people are the worst variable of all, worse than the stock market
Yup, same boat. I’m a lawyer making 6 figures but I need to make my money work harder than I am.
8 min & 30 sec into the video, already gotten more explained about taxes than any other video I've looked for tagged with dividend income / passive income, thumbs up!
7:28 ..."lunches out with ffffff clients and prospective customers".... lol :))
Rose thanks for the great info made simple for everyone. Where were you in the 70s when I started investing probably not born yet??? I subscribed to money magazine and taught myself all the things you are sharing. I also chose Fidelity even back then they were the best. I am now 77 and quite comfortable financially thanks to a bull market and some strict saving choices. I now at my age don't need to take any risk so am in mostly cds and some bonds but love watching your very good info on different investment. I am still with Fidelity. Thanks again. Keep up the good work.
I can’t thank you enough for the content you put out and the delivery in which you do it. Binging your videos has helped me so much in giving me a direction and feeling more comfortable to make financial decisions. Your explanations are very clear and easy to understand and I don’t feel like what your saying is going totally over my head.
I noticed on Instagram that you live in Denver which made me even more happy since I was born and raised here myself. So many blessings to you and your channel!
Was told this plan from my parents: good grades, undergrad, grad school, good stable job, get promotions BUT when does it stop? Dropped out of grad school and really fosucing on investment income!
P.S. We did rollover IRA's out of our retirement plans savings into a discount-no fee-brokerage, incurred NO tax consequences and entered the world of options investing. Best financial decision we have ever made. Our home is paid off, we are not limited to mutual funds like we were in traditional 401K and 403B plans and basically determine every week what we want to make. All by doing some research ahead of time and, when good candidates are found, set up short term trades (1-4 week in duration). And...I was able to continue working as well. Rollover IRA's do not require an employee to retire. Check your employer's retirement policies, though.
Literally just did the same thing. Not as easy as people think though. You have to pay attention to the market and trades don't always go your way.
Rich dad poor dad is the most recommended book i suggest for someone who need to understand why we invest and why you have to quit your current job
The caveat in order to prosper in business or investment income (passive income), is that you do have to work your ass off in order to acquire those. Earned income is still the best way to graduate to the other two. It’s not how much you make, it’s how much you keep.
"It’s not how much you make, it’s how much you keep..."
A penny saved is a penny earned.
Motto from my grandmother, a successful businesswoman and entrepreneur.
Well said
One thing people don't know is, the key to success and a stable finance is through investment . Also invest as early as you can. Don't invest money youll need immediately . Diversify your portfolio take calculated risk then youll realize the joy in investment .
@Emmanuel Boob your right. I've got a lot of friends from work who always argue about what to invest in. In the end they don't agree on anything cause they are not assured what they want to invest in will pay off
There are a lot of credible platforms to invest in but I chose to invest in forex trading cause right now it's very profitable as market conditions are going higher and higher
@Tom Szoke I've heard a lot about this forex thing and ill really love to invest in it if I can get adequate aid from a trusted professional
@Doris O'conner I'll really love to invest heavily in forex. Can you send me Mr Haward number. I've got like $20k to invest at least I won't need the money any time soon.
Mr Haward knows how to relate with his clients . He acts like a brother and I appreciate that
I realized this a year ago and I'm so glad you explained it so well. Rich get richer because of investments not earnings
I learned more from you in one afternoon of listening to your videos than I have listening to Dave Ramsey for 2 years! Keep it up, you're fantastic!
Thank you so much for this video....I’m a six figures earned income guy, living in a city I don’t like, to work a job I don’t really want, so I can buy things I don’t really need.....I just really needed to hear this, so thank you again!🙏
Excellent explanation on the advantages of business income over earned income. Always impressed when someone can explain this topic with such clarity, great job.....
Well said!! Earned income is the first step to getting investment and business income. Need money to make money.
Mind blown with this video! Definitely have to shift my "income" going forward. Looking to create side hustles in the next year or two in order to reach FIRE sooner.
Thank you 🌹 for sharing. For the past few months i have suffered from enxiety trying to figure how to create and secure a future for my family. I think i finally figured it out! It is finding a mentor that could guide me in the right direction.
So again thank you for sharing.
Someone's been reading Rich Dad Poor Dad. Great video!
@5:00
"Qualified dividends are taxed at 15% in the lowest tax bracket..."
???
They are taxed at 0% on the lowest two tax brackets, not 15%.
If you are single in 2020 and your taxable income is $0 to $9,875 your taxable income tax rate is 10% and your dividend income tax rate is 0%.
If you are single in 2020 and your taxable income is $9,875 to $40,000 your taxable income tax rate is 12% and your dividend income tax rate is 0%
Married in 2020 and your taxable income is $0 to $19,750 your taxable income tax rate is 10% and your dividend income tax rate is 0%
Married in 2020 and your taxable income is $0 to $80,000 your taxable income tax rate is 12% and your dividend income tax rate is 0%
You don't start paying taxes on your dividends until your taxable income is $40,001 as a single person or $80,001 as a couple.
If you put the standard deduction back into those incomes, in other words gross income with no other deductions at all (like kids, 401K, IRA, medical expenses, etc) the minimum that you will earn before you start paying taxes on qualified dividends as a single person is $54,800 and $104,800 as a married couple.
In other words, most people can have income tax free dividend income.
I enjoy your videos, but this is a pretty large error. How did it happen? Income tax information can be found in seconds on the web or even your brokerage firm might have it on their website.
Thank you for posting this. I’m in that zero bracket and making strategic dividend picks to grow my dividends. When your income is low you have to start with small goals. My dividends currently pay my property taxes.
@@MamaDee737
no problem :-)
Makes a big difference in planning investments too if you are heading into retirement.
11:00 The moment you realize that you don't have anything to put on that list.
Well, it's a wake up call and now you know. Get cracking!
Hey rose. Just wanted to mention something and hopefully get your comment to it. We hear a lot people especially on UA-cam today, talking about all this financial education, REAL LIFE education and how to actually make money etc... And it will usually come along with some statement about how insignificant a college degree is. I just can't help but disagree with this approach because I'm sure that whatever field your studies were in, your college degree provided you with a lot of important knowledge and tools that you're using today to run your business and do the stuff you do. Of course financial education is very important and we all wish that we would get some practical knowledge in highschool. But that doesn't mean it has to come in place of a college degree, as long as your studying something of your interest of course...
Education is very valuable. I don't like how people who push 'wealth creation' discredit the acquisition of education. Education is power! You can have a degree and career and become wealthy. Often times it is the job we get due to having the required educational qualification (degree etc), that provides us with the starting capital. Having a degree and being wealthy aren't mutually exclusive. I will never regret my degree because it is serving me well!
True !!!!
I grew up with a father who is a master chief and Mechanic. Not having a financial education is very unwise.
And I place it over having a degree.
Hi Rose, thank you soooo much for everything you're providing! Sincerely appreciate your time. Would it be possible to get a video on what various types of stocks and how their income/dividends are accomplished? (sorry if I didn't phrase that correctly)
@@RiquezaDias You're the best!!!
Great info, but I read that most new businesses fail and most business owners work more than 40 hours a week. I actually decided to launch my freelance writing business this year. The lack of leads and rejection is discouraging but I’m hopeful.
It sounds like I still have to "earn" earned income first to be able to "earn" unearned income unless I get an inheritance.
Pretty sure she literally says this at 13:00 So I think she agrees ;)
Yea if you want to do absolutely nothing and be rich, yes you will need a windfall.
Sounds about right.
This woman speaks the truth. I just forwarded this video to 2 of my soon to be FORMER coworkers
This video really broke down exactly how I need to get started and what to do! Thank you for putting it into a perspective I really understand
Rose, in your dividend example, you made about $20 that quarter. I would imagine that came from an investment of about $30k in large cap stocks. If you want to use that $20, then the stocks can’t be in a 401k. So, it doesn’t look like a good use of $30k spare cash.
actually, there are five types of incomes
1. earned income including your investments or businesses.
2. inherited income
3. marriage income
4. gamble income (lottery etc)
5. rob the bank income (any illegal sources).
I learned 7: earned, profit, interest, capital gains, dividend, royalty, rental
This is a very lightbulb moment for me. I’m 50 yrs young and still learning . Thank you 😊
I hope you are doing well and this pause from posting videos is something out of choice. Looking forward for more of these. Take care.
Anyone else confused on how to actually generate investment income? Everything I see is geared towards retirement (I have a 401(k) and Roth IRA already!)
I love your sharing without ads in the video, so much to learn and so much focus without ads.
Even though I agree. There are ways to claim lower income if you're earning is high by utilizing 401K and HSA. You can defer taxes and invest your money from both accounts :)
For those who are not aware about 401K match stipulation. Employers will not talk about this but you have to make sure you read the 401K match policy. Employer will offer the match but it's not technically yours until you work there for a certain minimum amount of year. Their match amount will show up on your account but once you quit, the money will disappear if do not meet their condition. Just something that I want to share :)
I really hope you come back soon. Hope you are safe and healthy.
The real problem is that businesses sometimes fail or take a long time to start making a profit and there's lots of risk in hoarding stocks because the market can crash.also..you have to first earn income to start a business or buy stocks unless of course you get a large inheritance...so I wouldn't say that schools are are wrong to only teach us how to earn an income
Everything you said is factual however would you be willing to risk that to gain financial freedom? or just play it safe?
i absolutely agreed with you there. especially with the current state of affairs buying stocks is the equivalent to gambling online. i wouldn't preach others to invest or put money into anything when we are close to record high stock market. investing in yourself make sure you have money for the cold winter and a roof over your head food on your table. having a job is actually the most practical position to be in at the moment let your boss shelter the risks. at least that is secured given the pandemic is not going anywhere any time soon. i run 3 in types of businesses food / entertainment types and two of them have gone under because of rent / lease my employees were crying as we were closing our shops down. the overheads, the physical distancing and tourism industy can wipe you out. i'm not trying to be a negative bag here but reality is it is a lot tougher out here.
Some divindens stock from big companies which we call to big to fail, would you lose them in an eventual crash?
I read and searched they stay intact but they get hit but never dies.
There are surely pros and cons to everything.
7:25 “A lot of my expenses are now business expenses lunches with frie.....clients.” Good save good save
Lol, I caught that too!
Yep, because she is writing off those lunches with Friends as clients, LOL.
Yeah. #audit
Friends can be clients/customers, vendors, etc.
Hi Rose. I LOVE YOUR VIDEOS SO INFORMATIVE 👋🏾👋🏾👋🏾❤️❤️ I need to leave my 6 figures job and work for myself. I am overwhelmed
Thank you rose PLEASE keep it up with the high quality content. Your channel will surely grow larger everyday!