Yeah, it is pretty boring until the assets start making more per year than the day job. Just consistent investing over a significantly long time. It is hard to stay motivated in the beginning and most people either never start or give up early. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
A little does a lot, over time. It works both ways, though, which is why tracking expenses is at least as important as making considerate investment decisions.
In the US it takes a bit of hard work, consistent intentional savings and investments for over decade or more and people will achieve some level of wealth. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
@@lukaVer In italy it's not just harder, it's defacto impossible since you cannot put your savings straight into stocks, nor can you manage them personally - that is if you want to put them in non taxed/deferred tax account comparable to a Roth IRA. If you want to manage them, you'll have them taxed every year with the usual rates (26% on capital gains).
Consistent Investing, Patience, and the Self-Discipline to not try to keep up with others spending habits, also make sure your spouse does not like to spend everything they have. (I drive the same car from 12+ years ago until it dies or becomes unreliable, my wife drives the same car from 10+ years ago. I will get a new one for my wife once mine dies and I will take hers, but we are in no rush and like our lives and enjoy simple things in life such as going to the pool, family walks, going out to eat, etc.)
I was making $58k in 2010 in my 40 hr/week day job and then worked another 20+ hours a week scraping metal and other odd jobs for another $10k. The reason for the jump from $0 to $50k was because of the house appreciation and some prior investments.
“Wealth is proportional to financial literacy” thank you for this framing! This is incredibly introspective for all populations and thank you for sharing your wisdom!
The farm sounds like it paid off! I forget who said it but i love the quote "If your money doesn't work for you you will work for money for the rest of your life"
People fall in love while they are dating so never lose / stop what made them fall in love with you in the first place. Too many people get married and then stop dating their wife/husband and then get out of shape and fight over money. Then someone else that is nice and does not fight with them and people are surprised that they leave for someone else. If there is a problem don't tell the other person what to do as they are an equal not a kid. Stand together and together look at the problem as a third party and the two of you are a team against the problem. "How can we figure out..." Well, first you both need to care about each other (physically, financially, emotionally, etc.) and have similar values. I have life insurance, but it will never be for my benefit it is completely because I care for my family. I generally dated women that were friends of mine first. I was also broke at that time that I met my wife, so she had to like me for me, because I had nothing else. To me it is about two people wanting to do whatever it takes to help the other. I want to make sure to provide for my family so I work and pay for everything we have and I want to my family to enjoy our time. So I pay for pool passes and go out to eat. She wants everyone to have clean closes and does laundry for all of us. My wife wants us to have shoes/clothing especially as kids grow out of things so she hunts for sales and buys good clothes at good prices as she wants to reduce the cost for us and I pay for it because I care about our family. We do not argue about money, but we have talked about when can we get cable again and when should we start paying for someone to mow the grass. When she is sick I get her the bucket, medicine, saltines, ice pops, etc. and when I had my appendix issue and thought it was constipation she helped get enemas and magnesium citrate and drove me to the hospital when I could not stop vomiting and ended up having surgery. My wife lets me sleep until 8 am on the week end when everyone wakes up at 6 am as she knows I make UA-cam videos until 2 am some nights. We each do for the other for the selfless good of the other and take from ourselves to do that out of love / care / respect. I put $7,000 a year into my wife's Roth IRA so it is only in her name and if we ever separated it would still be her IRA this is because I care about her well being even in the future and if we stay together then we get more trips / meals together.
@@financial_freedom101 Thank you for responding to that. Many people think relationships and marriage are a "set it and forget it" automatic thing that they never have to work on. It take lots of love, understanding, work, selflessness, and care to have and keep a loving, healthy relationship. It is neither for the weak, selfish, nor for the lazy.
I am glad that you enjoyed it. It was nothing fancy but something that people can copy if they are willing to put in the effort, money, and time. There are always downturns like when I lost my job in 2009 or another crisis that in the moment everyone panics, but life goes on. All investments carry risk and can lose value. Past performance does not guarantee future performance.
I do not like individual stocks as it takes much more time to manage and underperforms the index for 90% of actively managed accounts over a 20 year period. I invest mostly in low cost index funds such as SPY, VOO and mutual funds such as FXAIX. I do not want to hope to be the lucky 10% I have better odds beating the 90% and keep it simple so I can earn more in business and work. All investments carry risk and can lose value. Past performance does not guarantee future performance.
Good stuff. I think overall it’s good you frame it as net worth. Many People don’t realize the vast differs between net worth and liquid assets (you do, obviously). By the fact that 20-30% of your NW is equity, that’s very volatile and not liquid
Rome was not built in a day, I have no rush. I joked when people came over and asked where was my furniture in some rooms and I would act surprised and say "Oh my God. We've been robbed!" and then tell them I will get to filling the room when I find something that we like.
I appreciate the tenacity here. Please do a video on the debt freedom journey on its own, if possible. We own a home with maybe 40K im equity but we have 40 in debt so we are flat broke. 6 kids and a big mortgage to pay but we are determined.
I got my first real job in 2001 with a 401k.. I just turned 50 and only have 950k.. a little disappointed 24 years later. I have Roth IRA $25k. I make $170k year and I need to really step it up for these last 12 years.
Yeah, it is nothing too fancy so many people will think that it takes too much work and not click on it. Of the people that build a million dollar net worth they tend to do so in their late 40's while working normal jobs and consistently contribute to a retirement account and own their home. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
As a future accounting major/professional and finance enthusiast this is one of the best, and most realistic breakdowns of how to obtain wealth. The key factors seem to be the automated savings system, the company match, the side hustles and the average rate of return for the stock market.
Hi,please i was wondering if in all does years that you have invested in the 401K did you have it in Aggressive investing the entire time ? My company 401K has 3 options " Conservative investing, moderate investing and Aggressive investing " I'm in my late 40s please wish one do you recommend and wish one did you use in all the years you have invested in the 401K? Thank you so much in advance.
In the beginning I wasted some time and did not always pick the best returning options. It is hard to say anything about a conservative/moderate/aggressive investing as this does not say what you would actually be investing in company x, y, z. I put the majority of my money 80-90% in the SP500 and total US market low cost ETFs/funds. Around 10% in international funds and up to 10% in bonds when interest rates are going down as they move opposite the interest rate. I will continue to do this until I am 5-10 years away from retirement, then I will put the money I need in the next 5-10 years in CD ladders / Individual bonds / money markets / high yield savings accounts and leave the rest in the above mentioned low cost ETFs/funds. After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
If you Consider the Farm as a Side Hobby and not a Profit Business then yes keep it but you would be better of selling and Rent a Smaller Land and Plant some things..
Would it be bad to go all in on the S&P 500? Rather than investing in a 401k just max out my Roth and add any additional savings into FXAIX? I read in Tony Robins book that 401k's have nasty 1% fees that eat into a lot of wealth
I am still in my 30s so I am very heavy in the SP500, but someone close to retirement may start to carry more bonds and CDs mixed with stock. My 401k has options that cost as low as 0.09% and other funds that cost 1% or more. I read into the details and select my funds to avoid the high fees while providing returns that nearly match the SP500 and total market. If you go on the discord we can talk, but two lines of information is not enough to understand your situation. All investments carry risk and can lose value.
It is 4% company match and 7% additional company contribution. Yes, I try to explain that some employers pay less in salary, but we need to keep in mind all other forms of payment such as 401K, sick time, vacation time, healthcare, stock awards, bonus, ...
I am in the Amazon affiliate program where for my other UA-cam channels if I am using something I put the links in the description and if someone clicks on it and buys anything from Amazon for the next 24 hours I get around 3-4% of the total sale. To qualify I needed around 500 subscribers and sell 3 items within a few months on Amazon. I like it because there is no money out of my pocket so much less risk.
My man, this is an awesome study into your financial path--inspirational! I'm probably about 10 years in my journey, and I'm about ($50k behind you). I doubt I will see such dramatic lieaps in my upcoming years 10-15 like you did. I was just thinking I'd hit the million mark in about 15 years, but now I'm thinking I might be able to hit that mark sooner. 🙏
I have a question - right now my company match is only 1% (I’m with an engineering contracting company). How long would it have taken you to reach 1M without a company match and if that was the case what would you have done differently to make up the difference? I’m 26 and started maxing my Roth IRA 3 years ago. I’m investing $370 per week. I should have a total investing balance of 100k in 2 years if all stays the same or increases. Thank you for the video sir! I plan to make my money with my main career and side hustles and real estate and then retire outside the US where USD is valued higher! I would like to have 10M in spending power when I retire. Hopefully well before 65!
I would have to put more of my own money into my 401k and IRA earlier. I would have to also invest in a non tax advantaged account to make up the difference. If I did not invest as much it would take longer to reach the same net worth, about 5 extra years without the company match. Life changes things when people get married, have kids, want to stay near family to help with kids, stay near family when parents get sick / old. I have been to countries on 4 different continents and over 12 countries, I still love the US and do not want to be anywhere else. I do like visiting other countries for a few weeks at a time. If you want to retire overseas make sure who ever you marry wants the same.
Thanks for your insights! Its good to see that a simple but consistent approach can pay off so quickly. I started late, unfortunately, but am working on catching up (35yo now) and Im maxing my 401k and Roth IRA for the next few years at least to try to get myself back on track. Do you mind me asking what your day job is? I am also considering starting at UA-cam channel with a few ideas in mind on what topic to focus on. Do you have any advice on fitting that into a busy schedule while also making it profitable? $1500/mo is a great second income stream!
Here is a video on how to start a UA-cam channel and make money: ua-cam.com/video/r0mgMfxlYB0/v-deo.html I currently only have from 9pm to 12 midnight to work on UA-cam. Make a goal and take one step every day towards that goal even when you don't feel like it just like you go to work regardless of how you feel even if it is learning how to do something. It will take ~160 videos on average and 15 months until most people make any money from UA-cam. Pick a topic you enjoy otherwise people give up. I used a month of vacation to produce over 100 videos in January this year and have started making $3/day on this channel in 6 months. Keep at it and try a few different channel ideas and do not get discouraged as it will take time to learn what works and what does not. I have a $500+/month channel on fixing cars, another $1,000+/month channel on home repairs and putting stuff together and gardening, this newer channel just started making $90/month but has the most potential. I also started a video game channel, but no one watches that one so I stopped putting up videos because I follow the data of what works for me. When making content for UA-cam first focus on searchable topics with long format videos then make a UA-cam short from the long format video to gain quick views and subscribers. I still use a cell phone that records in 4K and a $20 tripod when outside and the same with addition of some soft lights for around $80. I use free software for video editing called Divinci Resolve and if you want screen capture another free software is OBS Studio. Goals: 1,000 subscribers and 4,000 hours of long format watch time = $ from Google Adsense If you want to talk I also have a discord link: discord.gg/TpcxEGVrY3 (I am travelling a lot to Europe so there may be a week here and there that I am not online.) I started working construction from 12 to 22 years old until I graduated and then worked as a scientist in process safety, then pilot plant engineering, then process engineering. In addition to the primary position I have consistently tried out various business ideas (bakery, farm, UA-cam, Amazon, landscaping, construction, investing, options trading, marketing, etc.)
Yes, it was not that exciting building it up and it is starting to be impressive now looking back. It is hard to stay motivated when starting and people like to put down others so they do not have to compete or change. They would also tell me such and such (who was broke) knew how to get rich and the new shinny thing would get me there. Boring consistent investments in profitable companies and real estate and a lot of hard work to provide the initial money over a long time got me there. All investments carry risk and can lose value. Past performance does not guarantee future performance.
My regular income was around $68,000 from my job at that point. My stock and investments went up around $8,000 and I used it to buy an undervalued home which I fixed up. I bought the house at $130,000 and was then valued at $170,000 made up $40,000 of the net worth at that time.
or live a GOOD inexpensive life outside the us...many go to become debt free in se-asia Thailand or vietnam where u can live pretty good on 1500-2000$ total incl housing food insurance and visa
I have a BS in Chemical Engineering, BS in Chemistry, MS in Chemical Engineering, PE in Chemical Engineering. I also worked in general construction from age 12 through my early 20's. I also was licensed in life insurance, food handling, and second mortgages.
Capital came from working my day job and investing in my own ideas while limited the cost/risk. For example starting a bakery: I rented a commercial bakery for $125 / night once or twice a week, insurance was $30/month, supplies were around $200/night and then we sold them at a farmer's market which cost $40/day and could sell $500/day just to get started. I find ways to reduce risk to try out an idea. I never want to risk financial ruin and make small bets on business ideas first and allow the business to pay for itself in order to grow.
@financial_freedom101 I like this thought process a lot. I may be aiming to high to start which is causing me to stop in my tracks in fear of the risk. But if I can work like this and make my input minimal, therefore risk low, I may be more willing to try ideas like you. Thanks you for your response. And thanks for the video.
I was exactly doing the same thing but went thru a divorce, you can guess what happened after that. 😢. Lost a full paid house and half of my 401k. But I am back in race. But love your channel. This is great video.
Great effort. I have recently increased my contributions to retirement from 4% to 10% and company matches 7.5%. I'm going to increase that to 12.5% once I get a pay rise. 😀
Good job, keep it up. After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
We pulled money from our 401k when we bought the land to build our house on, and the penalty was steep. Because we have health concerns that mean we probably won't both live to retirement, the Roth seems more attractive because it sounds like it's easier to pull at least the amount we contributed (not the earned interest) if we have to do it early, which is likely. I'd like to hear other people's opinions on whether that's definitely the case. Thank you for the very interesting video.
What are thoughts on selling off shares (that are at least 1 year & 1 day old), getting the profit, and buying back even more shares of the same stock?
If it is a taxable account it will make a new cost basis and you will have to pay taxes on the profit from each share which will reduce the total value.
@financial_freedom101 so wouldn't you have to pay zero taxes on your profits if they don't exceed the zero capital gains tax bracket for that tax year? I read an article on how a guy actually wanted to raise his cost basis so that he made less in profit, which means the profit that he did make would keep him in the zero capital gains tax bracket. Ultimately I just want to know, in your opinion do you think it's a good idea to sell off shares for profit to buy even more shares (your contribution + profits from the sell) or would you not sell at all (until retirement that is).
www.youtube.com/@MountainManMo www.youtube.com/@WelcometotheFamily1 The first channel Mountain Man Mo was making $250/month a few years ago. I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. Each channel has 3,000-5,000 subscribers so all are fairly small.
Where I work has 4% company match, 2% additional stock, and 5% to cash pension which then just went to 401k. I work as an engineer in a pharmaceutical industry. I have seen some small businesses that give half of all money ($11,500) contributed up to the limit for 401k ($23,000).
I will happily talk with you on the channel's discord channel. discord.gg/T4KXrwghMg I don't charge anything currently. I am normally on around 8pm-11pm eastern US time if you want to talk. Just leave a note of which days/times work well with your schedule in the channel and give me a day or two to respond. When I see people in the voice chat I jump on. I am growing a group of people interested in building businesses, investing, and helping each other to improve the lives of our families and communities so join if you are interested.
Yes, it is made up from 4% match, 2% stock, 5% cash balance pension which several years later was then contributed into the 401k as well for a total of 11% company contributions.
With a PE I make more than 75% of chemical engineers on base not including bonus and stocks from an employer. I have not yet started my own engineering firm and do not have a date in mind. Here are the chemical engineering salaries in the US: www.bls.gov/oes/2023/may/oes172041.htm
@@financial_freedom101 thanks. I think it’s a key point in this video that was left out is one of the drivers of early access to wealth is finding a way of significantly increasing your income
2009 ~$10,000 I got laid off, 2010 ~$58,000, 2019 finally made $100,000. (This is not including stock or asset gains.) Currently for this year stocks have made around $5,000-$7,000 per month in addition to normal income.
Good to hear. It seems to go very slow in the beginning where most of the investment is through hard work, but after building up $100,000 a 10% change in value is $10,000 and at $500,000 the change is $50,000 and that's when it really became fun at least when it was going up in value and it is a real test to see one's resolve and dedication to consistent investing when I saw a $100,000 unrealized loss with Ukraine in 2022. The downturns are just additional opportunities to buy good companies at a discount which takes years of investing and seeing the news to realize that things will work out, and if they don't money is the least of our worries. All investments carry risk and can lose value. Past performance does not guarantee future performance.
How about, how to know when to switch jobs? I am currently 6 months out of college. Working making 67k, but I work 20hrs overtime a week so it’s 117k. I am taking their 3% match that will vest in 3 years. What if another job has a better match and I make 85k in 1 year. Would it be worth it to leave the vested amount for a job with 20k higher pay?
I would say your time is the most valuable thing. Try and other things or strategies to invest in your free time. I was in the same position, was making less and had the opportunity to work for more money. I did, but was just to busy with the job and not having any time for me. I prefer to work less and have my time to learn and do other things that just get more money. You do what you think is right.
Long time horizon, discipline and consistency are keys. Not a fan of 401k but I understand hard to not do it if you have a match. If you are this disciplined and have a moderate understanding of managing your own investments, why not allocate a higher amount to your stock holdings?
We all need to still pay bills. I prefer tax advantaged accounts for stocks such as 401K and IRA. It also reduces my taxable income and allows for me to still make contributions to an IRA. Trading in IRAs also reduce paperwork at the end of the year when I would trade options. Now that I am exceeding IRA limits I will go through backdoor ROTH conversions and will likely go back to long term investing in a normal stock account and the 401k. I like keeping accounting and paperwork to a minimum to reduce my time I spend on them.
It is still 4% of the total income. Make sure you at least contribute enough to get the full match and I prefer around 10-15% of my income to set aside to some form of investment.
We have a 4% match. The 2% company stock and 5% pension were not based on match. The 7% is now added to the 401k as we no longer get a pension. This is a total of 11% company contribution rate to 401k. This is a non US based company. I do not want to provide the name on the channel as my advice and opinions may not necessarily be those of my employer and do not want a conflict between the two. If you want to talk I am on discord a few time per week after 8pm.
thank you for your time making this video fam!! im 22 now with 60k saved in a roth.. i save around 25-30% with 6% match but only make ~60k a year.... hoping for a decent retirement down the line, id also like to start a business as well one day.
Good job, keep it up. After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out. I like the ROTH IRA because after 5 years it has many advantages over a 401k and can be used for items other than retirement (down payment on a home or adoption etc.). All investments carry risk and can lose value. Prior performance does not guarantee future performance.
The three that I am currently earning on have a total of ~11,000 subscribers and total ~300,000 views per month. It is around $5 per thousand views depending on what the channel is about. It can be higher or lower. Shorts get paid a lot less than long format videos.
Most of these videos have the same theme. I bought an undervalue house 🏠. Firstly how did you gain the knowledge to know to buy an undervalue house and where were these houses? Who taught you about this so early and also about the stock market? Is this even applicable in this era?😊
From age 12 to my early 20's I worked in construction and helped me to see how much it would take to fix something up (Drywall, spackle, calk, paint, new windows, some leak repairs, new ceiling lights, ... are cheap and the labor is expensive) So I lived in the house and fixed it while I lived in it for at least 2 years which also made up to $250,000 in gains tax free. I saw 40-50 different homes and this had an overgrown lawn and a bunch of bushes/trees and looked in bad shape but the home was in great condition with no structural issues. I took a chainsaw to everything and cleaned up the yard and recoated the driveway and repainted the external parts as well. The neighboring houses were all selling/sold around $170,000 and I offered $139,000 with seller assist and then renegotiated post inspection which brought it down to $130,000 in the end. Deals are made not found. A similar house on the block was sold for $15,000 and that is not a typo and then sold for $200,000 a few months latter, but it took months of work to replace everything and I wish I put an offer in. For stocks I made some mistakes early on and learned from doing it and talking to others. It took me 5-10 years to understand the majority of investing vs trading and the importance of systems and processes for businesses as when I was younger I tried to do everything myself and just work harder which helped, but would not have got to over a million dollar net worth. I was the first one in my family to do most of what I did. And I did it to never question if we had enough money to pay for food, heat, gas, rent,... as that was an almost daily discussion I heard my parents talk about when I was a kid before they got divorced.
You have a giant farm ($400,000 to $800,000). Why would you not include that in your net worth? Do you fully own it? Are you purchasing it and don't have much equity?
The crop is worth $400,000-$800,000 and it is not guaranteed. I can provide an update when I harvest. I only lease land which was to reduce my upfront risk before making a profit. I rent before buying, then once I know I am making enough revenue to cover buying I then I reinvest and buy.
@@hermanwong7177many Americans inherited land because it was effectively seized from natives. In exchange however, natives got to operate casino's, 8a businesses for contracts, their own health system (IHS), reserved land called reservations, tax benefits, and more... Lots of this goes unmentioned.
www.youtube.com/@MountainManMo www.youtube.com/@WelcometotheFamily1 The first channel Mountain Man Mo was making $250/month a few years ago. I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. Each channel has 3,500-5,000 subscribers so all are fairly small.
2009 ~$10,000 I got laid off, 2010 ~$58,000 from my primary job and another ~$10,000 in scrap metal from dumpsters/trash, 2019 finally made $100,000 from my primary job. (This is not including stock or asset gains.) I bought a house in 2013 for $130,000 which I fixed up and was then valued at $170,000 which made up $40,000+ of the net worth at that time. Currently for this year stocks have made around $5,000-$7,000 per month in addition to normal income. I cannot share my current job income as people I work with also follow my channels.
Forget to mention expenses: 2010: $960/month 1 bedroom rent, $600/month school loans (Overpaid around $1,500-$2,000/month towards loans) $600/month for food 2013: $1,300/month mortgage $60/month water $200/month electric $320/month car $800/month food 2024: $3,090/month mortgage ($3,800/month with extra principle payment) $110/month water $250/month electric/gas $1,200/month for food For most years I had internet, but I did not have cable tv and just used a digital antenna to save money. Car insurance has always been around $100-$200 per month per car. My wife and I still drive the same 10 and 12 year old cars we bought new in 2014 and 2012 and I fix them myself when something breaks. We joke that she finds all the curbs, nails, and screws so I have gotten very good at tire plugs.
I have seven UA-cam channels, but only three that I post anything currently. Here are the car repairs: www.youtube.com/@MountainManMo Here are the home repairs/assembling toys/gardening/and random videos: www.youtube.com/@WelcometotheFamily1
I was 24 when I started investing in stocks and retirement accounts in 2010. I started working when I was 8 silk screening shirts with my dad, started working in pool construction outside of the family at 12 and started a small landscaping business cutting grass and hardscaping around 13.
At the time unemployment benefits would not be paid by the government if you were a student. Since I was a student I was not eligible for unemployment benefits / payments. So I took out additional loans when I lost my job while still a full time student in graduate school.
Are all of your investment/retirement accounts invested 100% s&p 500? If so, why not include any international or total market or smaller cap funds? Just wondering. Good discipline.
I had more bonds while interest rates were dropping and avoided bond funds while interest rates were increasing as they move inversely to interest rates. I generally kept around 10% in international stocks, but they have underperformed the US market and even when the SP500 was down the international funds seemed even worse. The majority of my holdings have been in the low expense index / ETFs that track the SP500/total US market/Midcap stocks over this 14 year period. I also started several businesses and in general most businesses will not become profitable in the first few years and most often close so I would limit my risk and see if each had the potential to become profitable and make early decisions on was it worth the effort, time, and money to continue them. I did make good money in construction, landscaping, marketing, engineering, computer programming, consulting, and sales. I also learned more from doing then I ever could in a class room so even the small losses I gained valuable education. I also purchased real estate and leased farm land. So I am in multiple asset classes (stock, real estate, businesses, etc.). All investments carry risk and can lose value. Past performances does not guarantee future performance.
Past performance does not guarantee future performance. Looking back we can say that, but what if there is shock to the US market (rapid US inflation/tax hikes/trade war/hot war/reserve currency status change/etc.) and the issues do not harm other countries/companies then the international stocks may have outperformed the US. I only keep a very small holding of international stocks and hold around 90% US stocks mostly in the SP500 index.
You count your pension into your net-worth? I thought it was only considered potential future income which isn’t liquid so it doesn’t constitute an asset?
It is my cash balance in this case which I can take with me if I leave the company. I would need to roll it into a traditional IRA or pay taxes if I did so. There are different types of pensions such as defined benefit and defined contribution / cash balance pensions.
It was 4% match, 2% stock, 5% cash pension and changed to just an additional contribution to 401k. So 11% total to the 401k as long as I add 4% to get the 4% company match.
Easier during the longest and largest bull market in history from 2009 until 2020. Also, even with the 35% covid drop and the 2022-2024 bear market, still a massive bull run from 2020 until 2024 too.
Yes, that helped a lot. I also struggled in 2008-2009 when I was laid off of one position and then my other position cut the pay in half and I had to take on an additional $12,000 of loans to pay for my living expenses during my master's degree.
That is step 1. But saving can only take us so far and step 2 is compounding growth through good investments start adding more to the pile than I can save each year at this point. All investments carry risk and can lose value.
I was making $58k at my day job and around an additional $10k when I scrapped metal. I recycled around 34,000 lbs of various metals that year from trash days and dumpster diving. It was also fun taking everything apart and seeing how TVs, microwaves, AC, etc. were made. Microwaves have some nice ring magnets that I would put a rope around to help pick up nails and screws. People also throw out perfectly working video games, CDs, VCRs, vacuum cleaners, etc. that I sold to second hand places. I grew up poor so I found many different ways to make money.
There are currently 24 million millionaires in the US currently. The average age millionaires first become millionaires is in their late 40's and comes from equity in their home and a 401k/403b/IRA or other retirement accounts. It is more achievable than most people think, but it takes consistent investing over many years. All investments carry risk and can lose value. Prior performance does not guarantee future performance.
I see that as taking on extra risk. What if the stock market lost value that year and the bank called the line of credit since the stocks could be worth less than the loan then I could have lost my home. I will never risk complete financial ruin or loss of my family's home. I prefer to take asymmetric risks with small potential loses and larger potential gains.
Now go back and take a look at the S&P500 graph. You do realize that starting from 2010 we had literally the biggest bull run in history, ever? If you started investing anytime, let's say from 1995 to 2005, getting to 2016 you would have had very little appreciation, and you would still be a far cry from 1M.
Yes, there has been higher returns lately and when I saw how low it got in 2009 I wanted to start investing as soon as possible to catch the recovery phase, but I was broke and started in 2010. Bonds and CDs had higher returns before 2010 than lately and I would have invested more in those. I have still have some bonds from 2004 that I will cash out shortly. Jan 1995 SP500 $46 Jan 2005 SP500 $116 (Prior 10 years averaged 9.3%) Jan 2016 SP500 $190 (Prior 21 years averaged 6.8%) Plus quarterly dividends of around which added another ~2% annually on top of the above returns and inflation was very low.
How to become a millionaire ? Just be an American. I worked for an American company. They are merit based. You work more, bring more cash, they pay you more. Simple formula for them.
It was $1700 last month from two other channels. At the time I recorded this I was only making $60/month on this channel, now it is around $400/month and total income from UA-cam is close to $2,000 a month.
Yes, I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. each channel has 3,000-5,000 subscribers so all are fairly small.
I must be getting old. I thought the title was, 'How I became a millennial in less that 15 years.' Anyway, good video. Sounds like you need a lot of self discipline to be successful.
Over 90% of active investors fail to outperform the S&P500 over a 20 year time period. I use the S&P500 due to that fact and it is more passive than looking for individual stocks. Also the SP500 removes and add companies based on if they make a profit quarterly.
Yes, that is true that some people can have great success at an early age. That is very uncommon and difficult to replicate. What I did is more repeatable and may take longer or shorter depending. All investments carry risk and can lose value. Past performance does not guarantee future performance.
It looks great, it is up over 21% over the last year, but I look at this over decades so a couple year dip does not bother me and gives me a chance to buy more shares on sale / discount. I only invest in stocks and real estate money I do not plan to spend for at least 5 years.
This video is gold.
"Not really that exciting" and long time horizon is the secret to wealth building.
Yeah, it is pretty boring until the assets start making more per year than the day job. Just consistent investing over a significantly long time. It is hard to stay motivated in the beginning and most people either never start or give up early.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
A little does a lot, over time. It works both ways, though, which is why tracking expenses is at least as important as making considerate investment decisions.
This is what people don't understand. Getting rich is by no means impossible, it just takes 10-15 years of discipline and proper investments.
In the US it takes a bit of hard work, consistent intentional savings and investments for over decade or more and people will achieve some level of wealth.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
I think in Europe its a little bit harder.
just beetcoin if you understand it
@@fastestRaceIst how to understand Bitcoin.
@@lukaVer In italy it's not just harder, it's defacto impossible since you cannot put your savings straight into stocks, nor can you manage them personally - that is if you want to put them in non taxed/deferred tax account comparable to a Roth IRA. If you want to manage them, you'll have them taxed every year with the usual rates (26% on capital gains).
Savings, investing, compounding.The master key? Self-discipline.🔥
Consistent Investing, Patience, and the Self-Discipline to not try to keep up with others spending habits, also make sure your spouse does not like to spend everything they have. (I drive the same car from 12+ years ago until it dies or becomes unreliable, my wife drives the same car from 10+ years ago. I will get a new one for my wife once mine dies and I will take hers, but we are in no rush and like our lives and enjoy simple things in life such as going to the pool, family walks, going out to eat, etc.)
@@financial_freedom101 GJ!
don't forget to make a lot of money.This guy has to be making 80k or more per year. WOW! 2012 at $0 to 2013 $50,000.
I was making $58k in 2010 in my 40 hr/week day job and then worked another 20+ hours a week scraping metal and other odd jobs for another $10k. The reason for the jump from $0 to $50k was because of the house appreciation and some prior investments.
Took 14.5 years for my current company 401k to hit $1M. Company has a very generous 12% match.
Congratulations, and good job making sure to get the company match it makes it much faster to grow your wealth.
That’s awesome marsh my company has 6% and considered “good” wow ..
@@efthimios mine has no match :(
“Wealth is proportional to financial literacy” thank you for this framing! This is incredibly introspective for all populations and thank you for sharing your wisdom!
What does financial literacy mean in this context? And also sorry for my bad english grammar by the way?
Incredible how you’ve mapped it all out and it was the consistency and power of compounding plus some smart business decisions that got you there!
The farm sounds like it paid off! I forget who said it but i love the quote "If your money doesn't work for you you will work for money for the rest of your life"
A lot a hard work congratulations, all you have to do is never get a divorce
That is the goal. The grass is generally greener in my yard because I water and fertilize it. (I take my wife out very often and we are best friends).
@@financial_freedom101is this really all it takes to have a successful relationship?
People fall in love while they are dating so never lose / stop what made them fall in love with you in the first place. Too many people get married and then stop dating their wife/husband and then get out of shape and fight over money. Then someone else that is nice and does not fight with them and people are surprised that they leave for someone else. If there is a problem don't tell the other person what to do as they are an equal not a kid. Stand together and together look at the problem as a third party and the two of you are a team against the problem. "How can we figure out..."
Well, first you both need to care about each other (physically, financially, emotionally, etc.) and have similar values. I have life insurance, but it will never be for my benefit it is completely because I care for my family. I generally dated women that were friends of mine first. I was also broke at that time that I met my wife, so she had to like me for me, because I had nothing else. To me it is about two people wanting to do whatever it takes to help the other. I want to make sure to provide for my family so I work and pay for everything we have and I want to my family to enjoy our time. So I pay for pool passes and go out to eat. She wants everyone to have clean closes and does laundry for all of us. My wife wants us to have shoes/clothing especially as kids grow out of things so she hunts for sales and buys good clothes at good prices as she wants to reduce the cost for us and I pay for it because I care about our family. We do not argue about money, but we have talked about when can we get cable again and when should we start paying for someone to mow the grass. When she is sick I get her the bucket, medicine, saltines, ice pops, etc. and when I had my appendix issue and thought it was constipation she helped get enemas and magnesium citrate and drove me to the hospital when I could not stop vomiting and ended up having surgery. My wife lets me sleep until 8 am on the week end when everyone wakes up at 6 am as she knows I make UA-cam videos until 2 am some nights. We each do for the other for the selfless good of the other and take from ourselves to do that out of love / care / respect. I put $7,000 a year into my wife's Roth IRA so it is only in her name and if we ever separated it would still be her IRA this is because I care about her well being even in the future and if we stay together then we get more trips / meals together.
You made it brah@@financial_freedom101
@@financial_freedom101 Thank you for responding to that. Many people think relationships and marriage are a "set it and forget it" automatic thing that they never have to work on. It take lots of love, understanding, work, selflessness, and care to have and keep a loving, healthy relationship. It is neither for the weak, selfish, nor for the lazy.
This gives me peace of mind since I just bought a home and have to stack cash like crazy but definitely helpful to see how 4 to 10% makes a difference
this is really the key! tried and true simple, boring, old Consistency and Discipline! congratulations, thanks for sharing
I am glad that you enjoyed it. It was nothing fancy but something that people can copy if they are willing to put in the effort, money, and time. There are always downturns like when I lost my job in 2009 or another crisis that in the moment everyone panics, but life goes on.
All investments carry risk and can lose value. Past performance does not guarantee future performance.
Favorite 5 stocks to put money into for longer term investment?
I do not like individual stocks as it takes much more time to manage and underperforms the index for 90% of actively managed accounts over a 20 year period. I invest mostly in low cost index funds such as SPY, VOO and mutual funds such as FXAIX. I do not want to hope to be the lucky 10% I have better odds beating the 90% and keep it simple so I can earn more in business and work.
All investments carry risk and can lose value. Past performance does not guarantee future performance.
I love this style reminds me of early UA-cam 🎉
Good stuff. I think overall it’s good you frame it as net worth. Many People don’t realize the vast differs between net worth and liquid assets (you do, obviously). By the fact that 20-30% of your NW is equity, that’s very volatile and not liquid
My favorite part was you telling us your house has empty rooms but you will soon be filling them up. 👼👼👼👍
Rome was not built in a day, I have no rush. I joked when people came over and asked where was my furniture in some rooms and I would act surprised and say "Oh my God. We've been robbed!" and then tell them I will get to filling the room when I find something that we like.
I appreciate the tenacity here. Please do a video on the debt freedom journey on its own, if possible. We own a home with maybe 40K im equity but we have 40 in debt so we are flat broke. 6 kids and a big mortgage to pay but we are determined.
Love this content. Looking to become financially free some day as well. Thank you for the insight 👊🏽
You can do it. It takes time, spending less then you make, and being consistent.
I got my first real job in 2001 with a 401k.. I just turned 50 and only have 950k.. a little disappointed 24 years later. I have Roth IRA $25k. I make $170k year and I need to really step it up for these last 12 years.
You still have more than the majority of all retirees.
170k. What occupation
Nice job! People won't click on this unless you change the time to 1 year that you became a millionaire 😂
Yeah, it is nothing too fancy so many people will think that it takes too much work and not click on it. Of the people that build a million dollar net worth they tend to do so in their late 40's while working normal jobs and consistently contribute to a retirement account and own their home.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
As a future accounting major/professional and finance enthusiast this is one of the best, and most realistic breakdowns of how to obtain wealth. The key factors seem to be the automated savings system, the company match, the side hustles and the average rate of return for the stock market.
Hi,please i was wondering if in all does years that you have invested in the 401K did you have it in Aggressive investing the entire time ? My company 401K has 3 options " Conservative investing, moderate investing and Aggressive investing " I'm in my late 40s please wish one do you recommend and wish one did you use in all the years you have invested in the 401K? Thank you so much in advance.
In the beginning I wasted some time and did not always pick the best returning options. It is hard to say anything about a conservative/moderate/aggressive investing as this does not say what you would actually be investing in company x, y, z. I put the majority of my money 80-90% in the SP500 and total US market low cost ETFs/funds. Around 10% in international funds and up to 10% in bonds when interest rates are going down as they move opposite the interest rate. I will continue to do this until I am 5-10 years away from retirement, then I will put the money I need in the next 5-10 years in CD ladders / Individual bonds / money markets / high yield savings accounts and leave the rest in the above mentioned low cost ETFs/funds.
After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
Wow. You just laid it all out there. This video is AMAZING
Could you share your career trajectory like income, raises, change of jobs?
If you Consider the Farm as a Side Hobby and not a Profit Business then yes keep it but you would be better of selling and Rent a Smaller Land and Plant some things..
Other Than That you have your Financials very Optimized and add to it every Year while still keeping a Family afloat!!
Would it be bad to go all in on the S&P 500? Rather than investing in a 401k just max out my Roth and add any additional savings into FXAIX? I read in Tony Robins book that 401k's have nasty 1% fees that eat into a lot of wealth
I am still in my 30s so I am very heavy in the SP500, but someone close to retirement may start to carry more bonds and CDs mixed with stock. My 401k has options that cost as low as 0.09% and other funds that cost 1% or more. I read into the details and select my funds to avoid the high fees while providing returns that nearly match the SP500 and total market. If you go on the discord we can talk, but two lines of information is not enough to understand your situation.
All investments carry risk and can lose value.
11% company match is nuts. Remember, now is always the right time to invest
It is 4% company match and 7% additional company contribution. Yes, I try to explain that some employers pay less in salary, but we need to keep in mind all other forms of payment such as 401K, sick time, vacation time, healthcare, stock awards, bonus, ...
Congrats man! Question, the youtube is self explanatory but what do you do to make money on amazon? Dropshipping? Selling? Just curious
I am in the Amazon affiliate program where for my other UA-cam channels if I am using something I put the links in the description and if someone clicks on it and buys anything from Amazon for the next 24 hours I get around 3-4% of the total sale. To qualify I needed around 500 subscribers and sell 3 items within a few months on Amazon. I like it because there is no money out of my pocket so much less risk.
My man, this is an awesome study into your financial path--inspirational! I'm probably about 10 years in my journey, and I'm about ($50k behind you). I doubt I will see such dramatic lieaps in my upcoming years 10-15 like you did.
I was just thinking I'd hit the million mark in about 15 years, but now I'm thinking I might be able to hit that mark sooner.
🙏
I have a question - right now my company match is only 1% (I’m with an engineering contracting company). How long would it have taken you to reach 1M without a company match and if that was the case what would you have done differently to make up the difference?
I’m 26 and started maxing my Roth IRA 3 years ago. I’m investing $370 per week. I should have a total investing balance of 100k in 2 years if all stays the same or increases.
Thank you for the video sir! I plan to make my money with my main career and side hustles and real estate and then retire outside the US where USD is valued higher! I would like to have 10M in spending power when I retire. Hopefully well before 65!
I would have to put more of my own money into my 401k and IRA earlier. I would have to also invest in a non tax advantaged account to make up the difference. If I did not invest as much it would take longer to reach the same net worth, about 5 extra years without the company match.
Life changes things when people get married, have kids, want to stay near family to help with kids, stay near family when parents get sick / old. I have been to countries on 4 different continents and over 12 countries, I still love the US and do not want to be anywhere else. I do like visiting other countries for a few weeks at a time. If you want to retire overseas make sure who ever you marry wants the same.
Nicely done man
And most importantly you’re sharing your valuable experience!
Thanks for your insights! Its good to see that a simple but consistent approach can pay off so quickly. I started late, unfortunately, but am working on catching up (35yo now) and Im maxing my 401k and Roth IRA for the next few years at least to try to get myself back on track. Do you mind me asking what your day job is?
I am also considering starting at UA-cam channel with a few ideas in mind on what topic to focus on. Do you have any advice on fitting that into a busy schedule while also making it profitable? $1500/mo is a great second income stream!
Here is a video on how to start a UA-cam channel and make money: ua-cam.com/video/r0mgMfxlYB0/v-deo.html
I currently only have from 9pm to 12 midnight to work on UA-cam. Make a goal and take one step every day towards that goal even when you don't feel like it just like you go to work regardless of how you feel even if it is learning how to do something. It will take ~160 videos on average and 15 months until most people make any money from UA-cam. Pick a topic you enjoy otherwise people give up. I used a month of vacation to produce over 100 videos in January this year and have started making $3/day on this channel in 6 months. Keep at it and try a few different channel ideas and do not get discouraged as it will take time to learn what works and what does not. I have a $500+/month channel on fixing cars, another $1,000+/month channel on home repairs and putting stuff together and gardening, this newer channel just started making $90/month but has the most potential. I also started a video game channel, but no one watches that one so I stopped putting up videos because I follow the data of what works for me. When making content for UA-cam first focus on searchable topics with long format videos then make a UA-cam short from the long format video to gain quick views and subscribers. I still use a cell phone that records in 4K and a $20 tripod when outside and the same with addition of some soft lights for around $80. I use free software for video editing called Divinci Resolve and if you want screen capture another free software is OBS Studio.
Goals: 1,000 subscribers and 4,000 hours of long format watch time = $ from Google Adsense
If you want to talk I also have a discord link: discord.gg/TpcxEGVrY3 (I am travelling a lot to Europe so there may be a week here and there that I am not online.)
I started working construction from 12 to 22 years old until I graduated and then worked as a scientist in process safety, then pilot plant engineering, then process engineering. In addition to the primary position I have consistently tried out various business ideas (bakery, farm, UA-cam, Amazon, landscaping, construction, investing, options trading, marketing, etc.)
@@financial_freedom101 Amazingly generous of you to communicate in such detail.
This is awesome, I love this. Shows that just being consistent over time leads to big results
Yes, it was not that exciting building it up and it is starting to be impressive now looking back. It is hard to stay motivated when starting and people like to put down others so they do not have to compete or change. They would also tell me such and such (who was broke) knew how to get rich and the new shinny thing would get me there. Boring consistent investments in profitable companies and real estate and a lot of hard work to provide the initial money over a long time got me there.
All investments carry risk and can lose value. Past performance does not guarantee future performance.
You must have had a big income to jump from $0 to $50,000 saving in a year
They never state their income and expenses rather than returns. They should be honest
My regular income was around $68,000 from my job at that point. My stock and investments went up around $8,000 and I used it to buy an undervalued home which I fixed up. I bought the house at $130,000 and was then valued at $170,000 made up $40,000 of the net worth at that time.
or live a GOOD inexpensive life outside the us...many go to become debt free in se-asia Thailand or vietnam where u can live pretty good on 1500-2000$ total incl housing food insurance and visa
@@financial_freedom101 okay so real estate. Sigh. Would be good to see these without real estate.
@jetpark374misleading at best.3
Many companies in the S&P 500 pay dividends, making it attractive for income-oriented investors
It serves as a benchmark for performance comparison, guiding investment decisions and strategies
Being traded on exchanges like stocks, ETFs offer liquidity throughout the trading day, allowing investors to buy and sell at market prices
Due to their structure, ETFs typically have lower capital gains distributions compared to mutual funds, enhancing tax efficiency for investors
It serves as a benchmark for performance comparison, guiding investment decisions and strategies
most people don’t realize how important financial planners are until they messed up
I loved the video and am very inspired. I'm wondering what you studied in school and what type of work do you do for your day job?:)
I have a BS in Chemical Engineering, BS in Chemistry, MS in Chemical Engineering, PE in Chemical Engineering. I also worked in general construction from age 12 through my early 20's. I also was licensed in life insurance, food handling, and second mortgages.
How did you manage to start businesses among this? Where did the capital come for that?
Capital came from working my day job and investing in my own ideas while limited the cost/risk. For example starting a bakery: I rented a commercial bakery for $125 / night once or twice a week, insurance was $30/month, supplies were around $200/night and then we sold them at a farmer's market which cost $40/day and could sell $500/day just to get started. I find ways to reduce risk to try out an idea. I never want to risk financial ruin and make small bets on business ideas first and allow the business to pay for itself in order to grow.
@financial_freedom101 I like this thought process a lot. I may be aiming to high to start which is causing me to stop in my tracks in fear of the risk. But if I can work like this and make my input minimal, therefore risk low, I may be more willing to try ideas like you. Thanks you for your response. And thanks for the video.
I was exactly doing the same thing but went thru a divorce, you can guess what happened after that. 😢. Lost a full paid house and half of my 401k. But I am back in race. But love your channel. This is great video.
Great effort. I have recently increased my contributions to retirement from 4% to 10% and company matches 7.5%. I'm going to increase that to 12.5% once I get a pay rise. 😀
Good job, keep it up. After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
@@financial_freedom101 Why put it in roth ira instead of continuing with regular 401k after company match?
We pulled money from our 401k when we bought the land to build our house on, and the penalty was steep. Because we have health concerns that mean we probably won't both live to retirement, the Roth seems more attractive because it sounds like it's easier to pull at least the amount we contributed (not the earned interest) if we have to do it early, which is likely. I'd like to hear other people's opinions on whether that's definitely the case.
Thank you for the very interesting video.
What are thoughts on selling off shares (that are at least 1 year & 1 day old), getting the profit, and buying back even more shares of the same stock?
If it is a taxable account it will make a new cost basis and you will have to pay taxes on the profit from each share which will reduce the total value.
@financial_freedom101 so wouldn't you have to pay zero taxes on your profits if they don't exceed the zero capital gains tax bracket for that tax year?
I read an article on how a guy actually wanted to raise his cost basis so that he made less in profit, which means the profit that he did make would keep him in the zero capital gains tax bracket.
Ultimately I just want to know, in your opinion do you think it's a good idea to sell off shares for profit to buy even more shares (your contribution + profits from the sell) or would you not sell at all (until retirement that is).
Love this video, honest and easy to take in
I am glad you enjoyed it.
At 7:48 you said UA-cam was paying $250/month was it this channel?
www.youtube.com/@MountainManMo
www.youtube.com/@WelcometotheFamily1
The first channel Mountain Man Mo was making $250/month a few years ago. I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. Each channel has 3,000-5,000 subscribers so all are fairly small.
@@financial_freedom101 awesome! I didn’t realize that even small channels have such huge potential.
Where do you guys find companies with such a high 401k match?
Where I work has 4% company match, 2% additional stock, and 5% to cash pension which then just went to 401k. I work as an engineer in a pharmaceutical industry. I have seen some small businesses that give half of all money ($11,500) contributed up to the limit for 401k ($23,000).
Do you do personal consulting?
I will happily talk with you on the channel's discord channel. discord.gg/T4KXrwghMg I don't charge anything currently. I am normally on around 8pm-11pm eastern US time if you want to talk. Just leave a note of which days/times work well with your schedule in the channel and give me a day or two to respond. When I see people in the voice chat I jump on. I am growing a group of people interested in building businesses, investing, and helping each other to improve the lives of our families and communities so join if you are interested.
11% Company Contribution! Wow! I think the average is a 4.8% match.
Yes, it is made up from 4% match, 2% stock, 5% cash balance pension which several years later was then contributed into the 401k as well for a total of 11% company contributions.
How much did you earn from your day job as a PE? Did you do work for your own business or self employed or was it for a company on salary?
With a PE I make more than 75% of chemical engineers on base not including bonus and stocks from an employer. I have not yet started my own engineering firm and do not have a date in mind. Here are the chemical engineering salaries in the US: www.bls.gov/oes/2023/may/oes172041.htm
@@financial_freedom101 thanks. I think it’s a key point in this video that was left out is one of the drivers of early access to wealth is finding a way of significantly increasing your income
Thank you for your video. What was your income during the years you showed? How did your income change during this investment time period?
2009 ~$10,000 I got laid off, 2010 ~$58,000, 2019 finally made $100,000. (This is not including stock or asset gains.) Currently for this year stocks have made around $5,000-$7,000 per month in addition to normal income.
@@financial_freedom101 I love your transparity.
@@financial_freedom101 wow. This is really impressive. I will emulate much of this. Thank you for responding.
Good to hear. It seems to go very slow in the beginning where most of the investment is through hard work, but after building up $100,000 a 10% change in value is $10,000 and at $500,000 the change is $50,000 and that's when it really became fun at least when it was going up in value and it is a real test to see one's resolve and dedication to consistent investing when I saw a $100,000 unrealized loss with Ukraine in 2022. The downturns are just additional opportunities to buy good companies at a discount which takes years of investing and seeing the news to realize that things will work out, and if they don't money is the least of our worries.
All investments carry risk and can lose value. Past performance does not guarantee future performance.
How about, how to know when to switch jobs? I am currently 6 months out of college. Working making 67k, but I work 20hrs overtime a week so it’s 117k. I am taking their 3% match that will vest in 3 years. What if another job has a better match and I make 85k in 1 year. Would it be worth it to leave the vested amount for a job with 20k higher pay?
I would say your time is the most valuable thing. Try and other things or strategies to invest in your free time. I was in the same position, was making less and had the opportunity to work for more money. I did, but was just to busy with the job and not having any time for me. I prefer to work less and have my time to learn and do other things that just get more money. You do what you think is right.
Long time horizon, discipline and consistency are keys. Not a fan of 401k but I understand hard to not do it if you have a match. If you are this disciplined and have a moderate understanding of managing your own investments, why not allocate a higher amount to your stock holdings?
We all need to still pay bills. I prefer tax advantaged accounts for stocks such as 401K and IRA. It also reduces my taxable income and allows for me to still make contributions to an IRA. Trading in IRAs also reduce paperwork at the end of the year when I would trade options. Now that I am exceeding IRA limits I will go through backdoor ROTH conversions and will likely go back to long term investing in a normal stock account and the 401k. I like keeping accounting and paperwork to a minimum to reduce my time I spend on them.
10-15 years, sounds achieveable and easy
My company gives 4% match but about 12% annual bonus so I guess that is about 8/9% match
It is still 4% of the total income. Make sure you at least contribute enough to get the full match and I prefer around 10-15% of my income to set aside to some form of investment.
What company do you work for?! A 4%-6% match is now the normal match.
We have a 4% match. The 2% company stock and 5% pension were not based on match. The 7% is now added to the 401k as we no longer get a pension. This is a total of 11% company contribution rate to 401k. This is a non US based company. I do not want to provide the name on the channel as my advice and opinions may not necessarily be those of my employer and do not want a conflict between the two. If you want to talk I am on discord a few time per week after 8pm.
thank you for your time making this video fam!! im 22 now with 60k saved in a roth.. i save around 25-30% with 6% match but only make ~60k a year.... hoping for a decent retirement down the line, id also like to start a business as well one day.
Good job, keep it up. After I got the company match any additional money I put in a ROTH IRA until I max that out and when I had more I would continue increasing the 401k until that becomes maxed out. I like the ROTH IRA because after 5 years it has many advantages over a 401k and can be used for items other than retirement (down payment on a home or adoption etc.).
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
This means nothing without seeing the income per year. It’s just numbers on a board 🤷♂️
Do you have another youtube channel? Curious as to how many views/subscribers it took to get to ~$1500 a month.
The three that I am currently earning on have a total of ~11,000 subscribers and total ~300,000 views per month. It is around $5 per thousand views depending on what the channel is about. It can be higher or lower. Shorts get paid a lot less than long format videos.
Most of these videos have the same theme. I bought an undervalue house 🏠.
Firstly how did you gain the knowledge to know to buy an undervalue house and where were these houses?
Who taught you about this so early and also about the stock market?
Is this even applicable in this era?😊
From age 12 to my early 20's I worked in construction and helped me to see how much it would take to fix something up (Drywall, spackle, calk, paint, new windows, some leak repairs, new ceiling lights, ... are cheap and the labor is expensive) So I lived in the house and fixed it while I lived in it for at least 2 years which also made up to $250,000 in gains tax free. I saw 40-50 different homes and this had an overgrown lawn and a bunch of bushes/trees and looked in bad shape but the home was in great condition with no structural issues. I took a chainsaw to everything and cleaned up the yard and recoated the driveway and repainted the external parts as well. The neighboring houses were all selling/sold around $170,000 and I offered $139,000 with seller assist and then renegotiated post inspection which brought it down to $130,000 in the end. Deals are made not found. A similar house on the block was sold for $15,000 and that is not a typo and then sold for $200,000 a few months latter, but it took months of work to replace everything and I wish I put an offer in. For stocks I made some mistakes early on and learned from doing it and talking to others. It took me 5-10 years to understand the majority of investing vs trading and the importance of systems and processes for businesses as when I was younger I tried to do everything myself and just work harder which helped, but would not have got to over a million dollar net worth. I was the first one in my family to do most of what I did. And I did it to never question if we had enough money to pay for food, heat, gas, rent,... as that was an almost daily discussion I heard my parents talk about when I was a kid before they got divorced.
@@financial_freedom101 Thanks for replying. Makes alot of sense now
You have a giant farm ($400,000 to $800,000). Why would you not include that in your net worth? Do you fully own it? Are you purchasing it and don't have much equity?
The crop is worth $400,000-$800,000 and it is not guaranteed. I can provide an update when I harvest. I only lease land which was to reduce my upfront risk before making a profit. I rent before buying, then once I know I am making enough revenue to cover buying I then I reinvest and buy.
How to invest commercial farm like u have? Steps pls thanks
@@hermanwong7177many Americans inherited land because it was effectively seized from natives. In exchange however, natives got to operate casino's, 8a businesses for contracts, their own health system (IHS), reserved land called reservations, tax benefits, and more... Lots of this goes unmentioned.
Really like your sincere sharing!
What are the youtube channels you created?
www.youtube.com/@MountainManMo
www.youtube.com/@WelcometotheFamily1
The first channel Mountain Man Mo was making $250/month a few years ago. I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. Each channel has 3,500-5,000 subscribers so all are fairly small.
@financial_freedom101 wow that's incredible income from smaller channels and that's just UA-cam Ad revenue?
8th wonder of the world is compounding interest!
Compounding is key over a long time period. I would never get here without it.
Please state your income, and expenses rather than returns. Please be honest
2009 ~$10,000 I got laid off, 2010 ~$58,000 from my primary job and another ~$10,000 in scrap metal from dumpsters/trash, 2019 finally made $100,000 from my primary job. (This is not including stock or asset gains.) I bought a house in 2013 for $130,000 which I fixed up and was then valued at $170,000 which made up $40,000+ of the net worth at that time. Currently for this year stocks have made around $5,000-$7,000 per month in addition to normal income. I cannot share my current job income as people I work with also follow my channels.
Forget to mention expenses:
2010: $960/month 1 bedroom rent, $600/month school loans (Overpaid around $1,500-$2,000/month towards loans) $600/month for food
2013: $1,300/month mortgage $60/month water $200/month electric $320/month car $800/month food
2024: $3,090/month mortgage ($3,800/month with extra principle payment) $110/month water $250/month electric/gas $1,200/month for food
For most years I had internet, but I did not have cable tv and just used a digital antenna to save money. Car insurance has always been around $100-$200 per month per car. My wife and I still drive the same 10 and 12 year old cars we bought new in 2014 and 2012 and I fix them myself when something breaks. We joke that she finds all the curbs, nails, and screws so I have gotten very good at tire plugs.
Just save $25,000 a year. Who would of thought?
Can you make a video about your commercial farm
Thank you for the request, here is the commercial farm video: ua-cam.com/video/1huGUpDZzwE/v-deo.html
Your back!!! 🎉
Yes, I am back from Europe. I will be traveling back and forth for the next few months.
What’re your other UA-cam channels?
www.youtube.com/@MountainManMo
www.youtube.com/@WelcometotheFamily1
Great job!!
Thank you!
How many channels do you have
I have seven UA-cam channels, but only three that I post anything currently.
Here are the car repairs: www.youtube.com/@MountainManMo
Here are the home repairs/assembling toys/gardening/and random videos: www.youtube.com/@WelcometotheFamily1
What age were you in 2010?
Great video!
I was 24 when I started investing in stocks and retirement accounts in 2010. I started working when I was 8 silk screening shirts with my dad, started working in pool construction outside of the family at 12 and started a small landscaping business cutting grass and hardscaping around 13.
@@financial_freedom101Thank you *so* much for your reply!
Thank you. Very helpful
You're welcome!
This is impressive. Kudos sir.
Great video!
Glad you enjoyed it
Great video.
Glad you enjoyed it
0:10 what does “not eligible for unemployment” mean in this context? And also sorry for my bad english grammar by the way?
At the time unemployment benefits would not be paid by the government if you were a student. Since I was a student I was not eligible for unemployment benefits / payments. So I took out additional loans when I lost my job while still a full time student in graduate school.
Are all of your investment/retirement accounts invested 100% s&p 500? If so, why not include any international or total market or smaller cap funds? Just wondering. Good discipline.
I had more bonds while interest rates were dropping and avoided bond funds while interest rates were increasing as they move inversely to interest rates. I generally kept around 10% in international stocks, but they have underperformed the US market and even when the SP500 was down the international funds seemed even worse. The majority of my holdings have been in the low expense index / ETFs that track the SP500/total US market/Midcap stocks over this 14 year period. I also started several businesses and in general most businesses will not become profitable in the first few years and most often close so I would limit my risk and see if each had the potential to become profitable and make early decisions on was it worth the effort, time, and money to continue them. I did make good money in construction, landscaping, marketing, engineering, computer programming, consulting, and sales. I also learned more from doing then I ever could in a class room so even the small losses I gained valuable education. I also purchased real estate and leased farm land. So I am in multiple asset classes (stock, real estate, businesses, etc.).
All investments carry risk and can lose value. Past performances does not guarantee future performance.
Why international? They’ve consistently underperformed. General growth funds and U.S. equities are the way to go.
Past performance does not guarantee future performance. Looking back we can say that, but what if there is shock to the US market (rapid US inflation/tax hikes/trade war/hot war/reserve currency status change/etc.) and the issues do not harm other countries/companies then the international stocks may have outperformed the US. I only keep a very small holding of international stocks and hold around 90% US stocks mostly in the SP500 index.
You count your pension into your net-worth? I thought it was only considered potential future income which isn’t liquid so it doesn’t constitute an asset?
It is my cash balance in this case which I can take with me if I leave the company. I would need to roll it into a traditional IRA or pay taxes if I did so. There are different types of pensions such as defined benefit and defined contribution / cash balance pensions.
Damn, 11% match? Is this normal? I work for a major healthcare organization amd get 4.5%
It was 4% match, 2% stock, 5% cash pension and changed to just an additional contribution to 401k. So 11% total to the 401k as long as I add 4% to get the 4% company match.
Time for a nice af business! airbnbs are crazy $$
I'm around $450K NW @ 28 years old. Been in my field for roughly 7 years now!
Great video man! Thank you!
Debt level?
I have over 1.5 million in assets and 400,000 in liabilities (debt) which equals around 1.1 million in net worth.
10 years is just too much, I need to do it in 3 years at most
Never mentioned income amount. I make 20 dollars an hour and owe 10 grand in student loans. I'm a zillonair...as in zero ...
I made $29/hr and was $43,000 in student debt at the start of this time frame.
Easier during the longest and largest bull market in history from 2009 until 2020. Also, even with the 35% covid drop and the 2022-2024 bear market, still a massive bull run from 2020 until 2024 too.
Yes, that helped a lot. I also struggled in 2008-2009 when I was laid off of one position and then my other position cut the pay in half and I had to take on an additional $12,000 of loans to pay for my living expenses during my master's degree.
Who tf was giving you an 11% 401k match? Between 4%-6% match is considered good employer match
It is 4% match, 2% stock regardless of contribution, and 5% cash balance pension for a total of 11%. This is in the pharma industry.
@@financial_freedom101 fasho
Great job, 👏
Secret....save a TON.
That is step 1. But saving can only take us so far and step 2 is compounding growth through good investments start adding more to the pile than I can save each year at this point.
All investments carry risk and can lose value.
Scrapping metal at night?. I got lost here. How much you were making to contribute 401k?
Something is off here
I was making $58k at my day job and around an additional $10k when I scrapped metal. I recycled around 34,000 lbs of various metals that year from trash days and dumpster diving. It was also fun taking everything apart and seeing how TVs, microwaves, AC, etc. were made. Microwaves have some nice ring magnets that I would put a rope around to help pick up nails and screws. People also throw out perfectly working video games, CDs, VCRs, vacuum cleaners, etc. that I sold to second hand places. I grew up poor so I found many different ways to make money.
Great advice
You are my hero
There are currently 24 million millionaires in the US currently. The average age millionaires first become millionaires is in their late 40's and comes from equity in their home and a 401k/403b/IRA or other retirement accounts. It is more achievable than most people think, but it takes consistent investing over many years.
All investments carry risk and can lose value. Prior performance does not guarantee future performance.
Instead of selling stock for your house, would a securities backed line of credit (SBLOC) worked better?
Good video
I see that as taking on extra risk. What if the stock market lost value that year and the bank called the line of credit since the stocks could be worth less than the loan then I could have lost my home. I will never risk complete financial ruin or loss of my family's home. I prefer to take asymmetric risks with small potential loses and larger potential gains.
@@financial_freedom101good analysis
Now go back and take a look at the S&P500 graph. You do realize that starting from 2010 we had literally the biggest bull run in history, ever? If you started investing anytime, let's say from 1995 to 2005, getting to 2016 you would have had very little appreciation, and you would still be a far cry from 1M.
Yes, there has been higher returns lately and when I saw how low it got in 2009 I wanted to start investing as soon as possible to catch the recovery phase, but I was broke and started in 2010. Bonds and CDs had higher returns before 2010 than lately and I would have invested more in those. I have still have some bonds from 2004 that I will cash out shortly.
Jan 1995 SP500 $46
Jan 2005 SP500 $116 (Prior 10 years averaged 9.3%)
Jan 2016 SP500 $190 (Prior 21 years averaged 6.8%)
Plus quarterly dividends of around which added another ~2% annually on top of the above returns and inflation was very low.
How to become a millionaire ? Just be an American. I worked for an American company. They are merit based. You work more, bring more cash, they pay you more. Simple formula for them.
True for the most part, but not always.
There are 340 million Americans and 24 million Americans are millionaires so around 7% are millionaires in the US by total population.
@@financial_freedom101 So you're not in the 24 million, since you're married and therefore a half millionaire?
1500$ from this channel? Or other channels too
It was $1700 last month from two other channels. At the time I recorded this I was only making $60/month on this channel, now it is around $400/month and total income from UA-cam is close to $2,000 a month.
Hi there, very interesting
Thanks for visiting
UA-cam pays you $1500 a month? From what? Do you have other channels? It doesn’t look like you have much views on this channel
Yes, I am making ~$1,000 on a home repair/family channel and ~$500 from a car repair channel, this one was not making money then, but is now in the $300-$400 range so it is close to $1,800+ per month in total. each channel has 3,000-5,000 subscribers so all are fairly small.
The most relevant information isn’t shared in this video. You talk about percentages but you don’t specify percentage of what…15k? 150k?
Read through the comments and you will see I was making $58k at my day job in 2010 and another $10k working an extra 20hr/week scraping metal.
@@financial_freedom101 my bad to not read all the comments. So sorry
I must be getting old. I thought the title was, 'How I became a millennial in less that 15 years.'
Anyway, good video. Sounds like you need a lot of self discipline to be successful.
I don't like sp500 i buy my stock based on my knowledge
Over 90% of active investors fail to outperform the S&P500 over a 20 year time period. I use the S&P500 due to that fact and it is more passive than looking for individual stocks. Also the SP500 removes and add companies based on if they make a profit quarterly.
I have "O" in my account but I believe in Jesus name I am going to be a millionaire in U .S A not China.
and the crazy part is that there are some mfs making mil / couple mo at age 19
Yes, that is true that some people can have great success at an early age. That is very uncommon and difficult to replicate. What I did is more repeatable and may take longer or shorter depending.
All investments carry risk and can lose value. Past performance does not guarantee future performance.
What UA-cam channel
www.youtube.com/@MountainManMo
www.youtube.com/@WelcometotheFamily1
How a that 401K look now? 🤔
It looks great, it is up over 21% over the last year, but I look at this over decades so a couple year dip does not bother me and gives me a chance to buy more shares on sale / discount. I only invest in stocks and real estate money I do not plan to spend for at least 5 years.