01:55 1 Saving $100/Month 08:40 2 Maxing Out Your Roth IRA 14:30 3 Saving $1,000/Month 18:42 4 Monthly Savings>Monthly Debt Repayment 22:02 5 Maxing Out Your 401(k) 26:30 6 Investing 25% Towards Retirement 31:40 7 Your Investments Exceed Your Spending
@@vwilso3224 especially if you max out the IRS first.. now you're talking about investing $30k, which means you mist make over $120k to do this before 25%. It's even worse when you consider that the 25% includes the employer contribution. So if an employer is doing 10%, you get to 25% even sooner yet. Now to max out 401k and IRA before 25%, you have to make $30k/.15=$200k.
This month is the first month I’m putting $583 a month into my ROTH IRA. At age 29 I’m excited to be on my path to financial independence. Thanks Money Guys!
That’s awesome! I’m in a similar boat, I’m 28, only had my Roth IRA two years. Just this year I set up a $134 weekly transfer into my Roth IRA ($580 per month). Recently reached $10k in my Roth IRA. Cheers!
23 year old here. Just here to brag because i don't in real life. I'm just out of university, 100% debt free, got out of university with a paid car and 10k in the bank. Currently saving 1500$/month. Really looking forward to start investing in real estate and have the financial security to start some kind of side gig
Excellent starting position. Remember that if you can develop a lucrative career, you don’t need a side hustle. I used to mess with that. Then after graduate school I make 225k and my spouse makes 400k. No need to worry about side hustles. Just something to think about.
@@james1000 not that I need a side hustle, but I like to stay busy and I would like to build something of my ownmy career is for security, but I only work 35 hours a week so I'll have time to do whatever kind of project seems fun
@@overlay5625Don’t forget to live though too. I am a year older than you and I definitely have done too much work at times and became regretful when I realized how much other areas of my life I put off. I work a full time job and have multiple part time jobs / side hustles. I just quit a part time job, and I’m looking to get more time back than that, because I’m giving up a lot of time for money that I don’t need to.
Good on you! What a great spot to be in. I’m a 53 year old dad of 4. Child 3 will graduate from college this year with zero debt and almost $50k saved. In one generation your families financial tree can turn around. My wife and I both come from middle income families. We both borrowed money for college. Started with nothing but debt and ambition. We have accumulated significant net worth in the last 30 years (over $15 million) and all our kids will have zero college debt and opportunities that I could only dream of. My point is, you are positioned to change your family tree! Now go start a business and go to work every day and pray the prayer of Jabez! Lastly, give generously as you go!!
I found this video to be super super helpful for those of us who aren't at the bottom drowning in debt but aren't quite financial mutants either. Having these quantitative tasks to check off made the path so much clearer. Thank you!
We are both 32, 2 kids. We’ve passed milestones 1,2,3,4, and 6. Step 5 and 7 would be a lot for us, but maybe some day! We both started investing early at 22, so it’s been awesome to see what has happened in 10 years 🎉
I feel pretty darn good after this one. I am 46, debt free and have milestones 1 - 4 knocked out. I also save 41% between my HSA, 401k and Roth IRA and 18% into cash reserves and short term savings so I am also knocking out 6 & 7. Maybe 18% is high for non invested savings but I am saving for an eventual car (current is 14 years old) but that savings rate may shift in a couple of years. The only milestone I am missing is maxing out my 401k. That is an income situation more than anything. I make 65k a year which is pretty good for a single income for my area. I am also a home body and most of my hobbies are things like drawing, reading, running D&D games, playing videogames, cooking, gardening, and playing guitar. So I don't spend on going out too often and I am not really into travel. I might splash out for a game or a vinyl album for my collection but not much spending. I keep my savings aggressive mostly to make up for my 20's. at 46 I have around 300k in retirement and about 15k in savings. I know I am behind so I am trying to load up as much as I can now so I have the most time to compound.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
FYI I did the math and milestones 5 and 6 will be flipped for those who earn less than $136,600 in 2024 and follow the FOO. See below for my explanation of how I came up with that number. People who follow the FOO (i.e.maxing out HSA and Roth IRA prior to maxing out 401k) would have to invest $34,150 in 2024 to max out their HSA ($4150), Roth IRA ($7000), and 401k ($23000). Obviously there is some nuance because this calculation assumes you have an HSA, your employer does not contribute yo your HSA, and that you are under 50 (i.e., not eligible for catch-up contributions). For $34,150 to be a 25% contribution rate, you would have to earn $136,600 (i.e. 34150 * 4). Thus any earnings over $136,600 would max out all retirement account before hitting the 25% investment rate.
Made it through step 4, now working on how to balance additional long-term investments and liquid savings for 1-5 year goals. Want to make sure we aren't so focused on our 30+ year future that we don't enjoy the journey along the way and have cash on hand to avoid financing avoidable debt.
Glad I found this channel, milestone #7 at the age of 35 (now 38), I feel like I life is on cruise control. Now my focus is downloading this knowledge to my kids to set them up for their journey. My hope is that this this knowledge and habits become generational.
Love the episodes and really appreciate everything you guys do. Please clarify that when you are talking about savings that you really mean investing. As a teacher myself, I know how important it is to be clear. Most people hear the word savings and immediate think of a savings account. Investing is different than savings and I really think it’s helpful to be as clear as possible and not assume others have the same frame of mind as we do. Loved Millionaire Mission! ❤❤❤
One place I always save big, food. I have to make everything from scratch and can seldom eat out for health reasons. Even stopping processed snacks saved. Will hopefully be maxing out my Roth for the first time by December if everything goes well. I didn’t start taking things seriously until recently, but watching your videos keeps me motivated!
This is a good list. I’m 49 and reconcile have reached step 7 when comparing investment vs my actual normal spending, but my “spending” in reality also includes setting aside money to help family as well as for travel. So when those are added in it comes out roughly equal or investing is slightly less than “spending” in that sense. But it’s still a good barometer to compare against. I find it helpful to benchmark against various frameworks including FOO, baby steps etc to see where I’m at in any given time.
I’m missing #7… number 4 is questionable as well… I save more than my mortgage and car payments. I put my spending on CC, but always pay it off, never pay interest. For #7, think I’ll surpass that milestone when house is paid off and my last child is through college. Anticipate both will be done in 4 years.
Great show!! I think an important one is missing (#8), and while aspirational is a major milestone, and that's when (whether you are working or not), you have enough cash coming in from unearned income that it meets or exceeds your spending needs. The point at which if you _wanted_ to stop or dial-down your earned income activities, based on your availability of cash from unearned income, you could. That's the financial independence point (as I would define it). #7 of saving more than you are spending is important and an admirable achievement, but a goal for the whole efforts of #1 - #7 is #8 (or another, achieving retirement based just on the level of assets you have), but #8 is living off (or the ability to live off) dividends while generally not needing to touch principal
I’m 19 years old. I currently have a portfolio worth $21k granted 1k was given to me by my parents last year on my 18th birthday, everything else besides that is all my own hard earned money. I have been consistently putting in $400 / week aside for my investments. 270 goes to my brokerage and 130 goes to roth ira. I still need to learn a lot of things on my journey and i would really appreciate it if there was more videos primarily targeting the younger audience. Like what you should do before 20 to be financially set or anything similar to that. So that younger generation like myself have more people to learn from because there are not that many youtube channels that primarily focuses on the youngsters. I really appreciate your guys work and dedication in educating people
Check out their "By Age" videos. I believe they have a "Net Worth By Age" video where they cover typical net worths for each age range and what those age ranges should do to set themselves up for success.
My wife and I invest between 5-6k each month and on average, our net-worth has grown by around 100k each year. Currently sitting 270k at age 33 and have been chasing 300k before turning 34 but won’t get there in time. Definitely think 400k while I’m 34 will happen though! Trying hit a million by age 40.
As an airline pilot I'm amazed that so many of my coworkers are retiring with less than $2m saved up. Even though they were fortunate never to be laid off. The company gives us 16% in our 401k when it hits the max it goes in to HSA accounts. I was furloughed many times and bankrupt after paying for my training. Things didn't pay off until 2016. I saved a lot of money every month and bought a modest home. I lived like I was still I employed. Now I see my fellow pilots loaded with debt. Big houses multiple cars and credit card debts. It's not how much you make it's how much you spend. I'm retiring early. They are looking for another job when they have to retire at 65.
I celebrated every next higher denomination of money in dividends, still working my way up though 1 cent 5 cent 10 cent 25 cent dollar. Lots of work to go.
So! Story behind Dante's Down the Hatch: Awesome fondu place with pirate ships inside the building itself and gators in the water around the ships. My family would frequently go there decked out (pun intended) as pirates. My aunt and uncle, specifically, would go so frequently that they were refered to, by Dante himself, as "his pirates". Several years ago (I want to say back in 2013), Dante decided to retire because the city decided to jack up tax rates. The building was demolished and something like condos or an office building or something were built in its place. THAT is what burned down. Not the actual fondu place. There were rumors that there was going to be a second Dante's, but he unfortunately passed away a few years ago.
This will be the fifth year of the last 6 that I’ve been able to max out my 401k. I haven’t honestly paid much attention to the other steps they are prioritizing. Maybe I’ll work on a few them starting next year??
Can 1 and 2 be combined? Should you be saving the $100 in something like a HYSA and then maxing out your Roth separately? OR could you save the $100 and contribute that towards your Roth?
I'm 24 and already saving 23% of my gross income to retirement. My company has amazing match. First 4% is automatic. I put in 4% and they give me 13% in addition to my 4. Then I add additional 3% which they match exactly. So I put in 7% but I get my 7% plus their 13 and 3% match. That is 23% with only putting 7% in. And pension contributions is taken out before tax is taken in my country 😮
Pretty sure, monthly debt (#4) are the monthly payments for mortgage, car debt, student debt, consumer/credit card debt, any private loans you have to pay back on a monthly basis. Main bills, going out to eat and whatever else you spend in a month = monthly spending (#7)
Crazy to think I’ve hit that stage at age 26! My only concern is that I could get my income out of the Roth IRA income limits in the next 3-5 years or so and can’t do mega back door Roth IRAs. I guess brokerage will keep being pushed
The BEST financial milestone to reach is when you are educated enough to manage your own finances without paying a CFP an absurd yearly 1% to 2% of your assets!
Ehhhh. I'd posit that the milestone of having the financial literacy and discipline to even consider a CFP is a bigger milestone You've basically already won the game if you're knowledgeable and skilled enough to generate the investments and resources that a big CFP would consider taking you as a client
@@rayzerot Most people are just trying to make the million mark, and that is greatly helped by being financially educated so that you don't waste 10%, 20%, 30% of your hard earned assets paying an AUM over years to a blood sucking CFP.
@kendarcie6613 which is why they always say take the free content while you're in the wealth building phase, then take the relationship to the next level when complexity warrants.
Don't know how it works in other countries, but here in India, we have many fixed fee certified financial planners as well. They'll charge you anywhere between 500-2000 usd a year and help you manage your whole portfolio. Much better than a percentage based fee.
So imagine spending 30k on a singular day that you get zero dollars from at the very start of your journey… wedddings!!! The single dumbest move people make financially in their lives. I spent 6k on mine 140 people fed. 6k in money gifts back after. So zero loss! Make the right choices everyone
I’m currently investment rich but don’t own a house. How can I work toward short-term goals like owning a house (in the HCOL area) meanwhile still investing 25% for my future?
One big milestone is when your portfolio is big enough to grow to your target for retirement by itself without you needing to invest anymore. Everything you invest after that milestone is to have a more comfortable retirement or retire earlier.
@5:25 60% of US households do not have $1,000 in reserve for an emergency. Hey...that was us 8 years ago. Today we have 10 months expenses in reserve, no debt, we are maxing out our 401Ks, putting $1,000 in a taxable brokerage account and still adding to our savings. Was it easy? No. It was very difficult and exhausting. Was it worth it, would we do it again, is our stress level lower, are we optimistic about our future? The answer to all that in a single word...yup!
I’m 31 investing at least 25% as well. Doesn’t that mean we’d need a 51% or more savings rate to hit this milestone? Mortgage/rent, bills, kids, leisure, and taxes are all expenses
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
When they say you need to save x% at Y age to recover Z% of your income in retirement, I am presuming this is based on the idea that your expenses never change from the point you start saving that amount? I have been saving over the past 5 of so years but my income has more than doubled. My expenses haven't more than doubled but they have increased and in retirement I would like to have an expense limit of around the amount I am spending now, not 5 years ago when I started. Does anyone know more details on the maths here or are we just better off doing a cashflow model? thanks!
What we did when we started earning more was to raise the amount of savings in a few steps to 30%. This was easy because of the raises in income. In effect we were saving 4 times the amount of money compared to when we started. I set up a spreadsheet which allowed for 'what-if' tests to check different scenarios. In the end we retired far earlier than we had planned, as our investments brought more money than we planned. What we learned is that active planning is the best way to go, at least for us.
I would like to add that milestones will be different for each person depending on what stage of life they are in. I save $100 out of my first paycheck at age 15 because I had 0 bills. My Mom took me to the bank to open a savings account. I was a homeowner at age 19 with mom's help. I didn't save anything at that point. Everything went to my home and family. New appliances, carpet, lawnmower, furniture, diapers, etc but I was creating a ton of wealth due to sweat equity and house hacking. I paid off the mortgage at age 24 and bought another property at age 26.
Hahaha that's great. I thought it was great that he just casually mentioned that there were alligators in the lobby. I wonder what the rest of the "crazy stuff" was.
Our mortgage (P&I) is 800/mo no other debt. House is almost paid off. We invest around 4850/mo which equates to 35% of our gross income. I guess I need to stop worrying so much about our finances
For the love of god, use chapters feature thats built into UA-cam. The comment with time stamps is one of your subscribers doing your work for you and he should send you a bill for that
Roth IRA's are NOT tax free. You are taxed as throughout its lifetime on what you put in and it makes in dividends. It's pretty much the same as a normal Brokerage account, but it gets capped.
Why would you save 25% for retirement? If you start early 15% is probably too much as well. Why would you not save the gap in a taxable brokerage. Retirement accounts are great but they reduce flexibility. 1 million dollars in your 30s in your retirement accounts that's inaccessible seems pretty pointless, unless your goal is coast fi.
If someone withdraws some of their basis from their Roth IRA, can you later put that amount back into it that doesn’t go against your yearly contribution limit?
When they said "cashflow" I assumed they meant dividends and interest from your wealth - it IS a milestone when your CASHFLOW reaches $100/month!!! BUT ANOTHER saving video is dull...
01:55 1 Saving $100/Month
08:40 2 Maxing Out Your Roth IRA
14:30 3 Saving $1,000/Month
18:42 4 Monthly Savings>Monthly Debt Repayment
22:02 5 Maxing Out Your 401(k)
26:30 6 Investing 25% Towards Retirement
31:40 7 Your Investments Exceed Your Spending
Great! Thanks!
Interesting that these are out of order for non higher income earners (maxing out your 401k is more than 25% for most people)
@@vwilso3224 especially if you max out the IRS first.. now you're talking about investing $30k, which means you mist make over $120k to do this before 25%. It's even worse when you consider that the 25% includes the employer contribution. So if an employer is doing 10%, you get to 25% even sooner yet. Now to max out 401k and IRA before 25%, you have to make $30k/.15=$200k.
Our hero! 🦸♂️
Much Appreciated!
This month is the first month I’m putting $583 a month into my ROTH IRA. At age 29 I’m excited to be on my path to financial independence. Thanks Money Guys!
Had u done any prior?
Even if not you will be set
That’s awesome! I’m in a similar boat, I’m 28, only had my Roth IRA two years. Just this year I set up a $134 weekly transfer into my Roth IRA ($580 per month). Recently reached $10k in my Roth IRA. Cheers!
23 year old here. Just here to brag because i don't in real life. I'm just out of university, 100% debt free, got out of university with a paid car and 10k in the bank. Currently saving 1500$/month. Really looking forward to start investing in real estate and have the financial security to start some kind of side gig
Excellent starting position. Remember that if you can develop a lucrative career, you don’t need a side hustle. I used to mess with that. Then after graduate school I make 225k and my spouse makes 400k. No need to worry about side hustles. Just something to think about.
@@james1000 not that I need a side hustle, but I like to stay busy and I would like to build something of my ownmy career is for security, but I only work 35 hours a week so I'll have time to do whatever kind of project seems fun
@@overlay5625Don’t forget to live though too. I am a year older than you and I definitely have done too much work at times and became regretful when I realized how much other areas of my life I put off.
I work a full time job and have multiple part time jobs / side hustles.
I just quit a part time job, and I’m looking to get more time back than that, because I’m giving up a lot of time for money that I don’t need to.
Good on you! What a great spot to be in. I’m a 53 year old dad of 4. Child 3 will graduate from college this year with zero debt and almost $50k saved. In one generation your families financial tree can turn around. My wife and I both come from middle income families. We both borrowed money for college. Started with nothing but debt and ambition. We have accumulated significant net worth in the last 30 years (over $15 million) and all our kids will have zero college debt and opportunities that I could only dream of. My point is, you are positioned to change your family tree! Now go start a business and go to work every day and pray the prayer of Jabez! Lastly, give generously as you go!!
Making great decisions there, It took me about 5 years after college to get to stable with savings and emergency fund!
I found this video to be super super helpful for those of us who aren't at the bottom drowning in debt but aren't quite financial mutants either. Having these quantitative tasks to check off made the path so much clearer. Thank you!
We are both 32, 2 kids. We’ve passed milestones 1,2,3,4, and 6. Step 5 and 7 would be a lot for us, but maybe some day! We both started investing early at 22, so it’s been awesome to see what has happened in 10 years 🎉
Dont always have to hit them all to have a succesful life. Follow the Financial order of operations. These guys are amazing
Achieving positive cash flow is definitely something worth celebrating.
I recently hit a major cash flow milestone myself. It felt great to see all my efforts paying off.
It can be a game-changer in your financial journey, providing more security and flexibility.
What kind of milestones do you think are worth celebrating?
I feel pretty darn good after this one. I am 46, debt free and have milestones 1 - 4 knocked out. I also save 41% between my HSA, 401k and Roth IRA and 18% into cash reserves and short term savings so I am also knocking out 6 & 7. Maybe 18% is high for non invested savings but I am saving for an eventual car (current is 14 years old) but that savings rate may shift in a couple of years. The only milestone I am missing is maxing out my 401k. That is an income situation more than anything. I make 65k a year which is pretty good for a single income for my area. I am also a home body and most of my hobbies are things like drawing, reading, running D&D games, playing videogames, cooking, gardening, and playing guitar. So I don't spend on going out too often and I am not really into travel. I might splash out for a game or a vinyl album for my collection but not much spending. I keep my savings aggressive mostly to make up for my 20's. at 46 I have around 300k in retirement and about 15k in savings. I know I am behind so I am trying to load up as much as I can now so I have the most time to compound.
You're doing great, keep it up!!!!
Keep it up! You’re doing great
This is a good post!
You are crushing it 🎉
Keep it up! Agree this was a good own I feel better 🎉
“Money is not a goal, its just a tool.”
I love that!! What a great mindset!
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
I love the smirk Bo gets every time we hear about the bowling point. 18:02
FYI I did the math and milestones 5 and 6 will be flipped for those who earn less than $136,600 in 2024 and follow the FOO. See below for my explanation of how I came up with that number.
People who follow the FOO (i.e.maxing out HSA and Roth IRA prior to maxing out 401k) would have to invest $34,150 in 2024 to max out their HSA ($4150), Roth IRA ($7000), and 401k ($23000). Obviously there is some nuance because this calculation assumes you have an HSA, your employer does not contribute yo your HSA, and that you are under 50 (i.e., not eligible for catch-up contributions). For $34,150 to be a 25% contribution rate, you would have to earn $136,600 (i.e. 34150 * 4). Thus any earnings over $136,600 would max out all retirement account before hitting the 25% investment rate.
Similarly steps 2 and 3 are flipped for any couples. 1000 per month or 12,000 per year doesn't max out two IRAs in 2024.
Made it through step 4, now working on how to balance additional long-term investments and liquid savings for 1-5 year goals. Want to make sure we aren't so focused on our 30+ year future that we don't enjoy the journey along the way and have cash on hand to avoid financing avoidable debt.
I tried
I love Bo's intro. In every video, Bo would say, "I am so excited about this." It would be really sad if I don't get to hear that.
Glad I found this channel, milestone #7 at the age of 35 (now 38), I feel like I life is on cruise control. Now my focus is downloading this knowledge to my kids to set them up for their journey. My hope is that this this knowledge and habits become generational.
It is better to create chapters for long videos
Somoene usually comments and does it for them
Or just invest 34 minutes of your day and watch the video
Love the episodes and really appreciate everything you guys do. Please clarify that when you are talking about savings that you really mean investing. As a teacher myself, I know how important it is to be clear. Most people hear the word savings and immediate think of a savings account. Investing is different than savings and I really think it’s helpful to be as clear as possible and not assume others have the same frame of mind as we do. Loved Millionaire Mission! ❤❤❤
I brought lunch to work for 40 years, it’s paid off!
I brought coffee in a thermos for 20 years, Hello Jamaica!
Yeah.
I skipped breakfast and brought microwave noodles or left overs for 10 years. Before that I was wasting $15-20/day.
$7k a year I was wasting.
You’d think this wouldn’t be a radical idea. And yet it is and will help you save thousands per year
One place I always save big, food. I have to make everything from scratch and can seldom eat out for health reasons. Even stopping processed snacks saved. Will hopefully be maxing out my Roth for the first time by December if everything goes well. I didn’t start taking things seriously until recently, but watching your videos keeps me motivated!
Good on you! I have to do the same thing and it is wild how the cost of food (and health care) goes down.
20:48 when he said "go for a walk" my wife and I both started laughing because that's totally how we'd celebrate 🤣
This is a good list. I’m 49 and reconcile have reached step 7 when comparing investment vs my actual normal spending, but my “spending” in reality also includes setting aside money to help family as well as for travel. So when those are added in it comes out roughly equal or investing is slightly less than “spending” in that sense. But it’s still a good barometer to compare against. I find it helpful to benchmark against various frameworks including FOO, baby steps etc to see where I’m at in any given time.
I'm 21 and saving about 70% of my income. I'm told it's too aggressive but I want to own a house and be secure in my 20s
I’m missing #7… number 4 is questionable as well… I save more than my mortgage and car payments. I put my spending on CC, but always pay it off, never pay interest. For #7, think I’ll surpass that milestone when house is paid off and my last child is through college. Anticipate both will be done in 4 years.
Great show!! I think an important one is missing (#8), and while aspirational is a major milestone, and that's when (whether you are working or not), you have enough cash coming in from unearned income that it meets or exceeds your spending needs. The point at which if you _wanted_ to stop or dial-down your earned income activities, based on your availability of cash from unearned income, you could. That's the financial independence point (as I would define it).
#7 of saving more than you are spending is important and an admirable achievement, but a goal for the whole efforts of #1 - #7 is #8 (or another, achieving retirement based just on the level of assets you have), but #8 is living off (or the ability to live off) dividends while generally not needing to touch principal
I’m 19 years old. I currently have a portfolio worth $21k granted 1k was given to me by my parents last year on my 18th birthday, everything else besides that is all my own hard earned money. I have been consistently putting in $400 / week aside for my investments. 270 goes to my brokerage and 130 goes to roth ira. I still need to learn a lot of things on my journey and i would really appreciate it if there was more videos primarily targeting the younger audience. Like what you should do before 20 to be financially set or anything similar to that. So that younger generation like myself have more people to learn from because there are not that many youtube channels that primarily focuses on the youngsters. I really appreciate your guys work and dedication in educating people
Check out their "By Age" videos. I believe they have a "Net Worth By Age" video where they cover typical net worths for each age range and what those age ranges should do to set themselves up for success.
I’m on milestone #7 I’m a 29 year old construction worker and I came from no family money. It’s all about discipline and automating good habits.
Hey, did Brian write a book? He doesn't mention it much 😉
Millionaire Mission
Milestone 8, you're generating passive cashflow from your book. :P
Haha😂
Yes he did (“Millionaire Mission”). I’ve read it. It’s really good. If you like the podcast, it’s worth reading.
🤣😂
Beau’s smirk when he hears “bowling point” is a major podcast milestone you guys should get “excited about”.
*Bo
I hit them all including maxing out not just 401k but also mega backdoor, but i live my life in constant fear of losing my job
Sheeeeeeesh lol great job! I’m about at 1/3 maxing out the mega Roth … hopefully to get there one day
My wife and I invest between 5-6k each month and on average, our net-worth has grown by around 100k each year. Currently sitting 270k at age 33 and have been chasing 300k before turning 34 but won’t get there in time. Definitely think 400k while I’m 34 will happen though! Trying hit a million by age 40.
As an airline pilot I'm amazed that so many of my coworkers are retiring with less than $2m saved up. Even though they were fortunate never to be laid off. The company gives us 16% in our 401k when it hits the max it goes in to HSA accounts. I was furloughed many times and bankrupt after paying for my training. Things didn't pay off until 2016. I saved a lot of money every month and bought a modest home. I lived like I was still I employed. Now I see my fellow pilots loaded with debt. Big houses multiple cars and credit card debts. It's not how much you make it's how much you spend. I'm retiring early. They are looking for another job when they have to retire at 65.
I celebrated every next higher denomination of money in dividends, still working my way up though
1 cent 5 cent 10 cent 25 cent dollar. Lots of work to go.
"a fondue place that's since burned down"... there's a story there and I think that we deserve to hear it.
So! Story behind Dante's Down the Hatch:
Awesome fondu place with pirate ships inside the building itself and gators in the water around the ships. My family would frequently go there decked out (pun intended) as pirates. My aunt and uncle, specifically, would go so frequently that they were refered to, by Dante himself, as "his pirates".
Several years ago (I want to say back in 2013), Dante decided to retire because the city decided to jack up tax rates. The building was demolished and something like condos or an office building or something were built in its place. THAT is what burned down. Not the actual fondu place.
There were rumors that there was going to be a second Dante's, but he unfortunately passed away a few years ago.
I am proud 27 and hit #1,#2#4,#6,#7 not there yet but we are trying!
Thanks money guys for reminding us we are CRUSHING it
Keep on going strong 💪
Love this! Thanks you for teaching me ❤
Having the little pop-ups that show the FOO is awesome. Great video quality. Thanks for making this!
This will be the fifth year of the last 6 that I’ve been able to max out my 401k. I haven’t honestly paid much attention to the other steps they are prioritizing. Maybe I’ll work on a few them starting next year??
Reached all these already 🎉.
Unfortunately I started later than I should have so I missed out on a lot of compounding!
same here, just imaging I started investing in index ETF when I was 20 something intead stocks.
Can 1 and 2 be combined? Should you be saving the $100 in something like a HYSA and then maxing out your Roth separately? OR could you save the $100 and contribute that towards your Roth?
I'm 24 and already saving 23% of my gross income to retirement. My company has amazing match. First 4% is automatic. I put in 4% and they give me 13% in addition to my 4.
Then I add additional 3% which they match exactly.
So I put in 7% but I get my 7% plus their 13 and 3% match.
That is 23% with only putting 7% in. And pension contributions is taken out before tax is taken in my country 😮
42, own my home, no debt, maxing my 401k $23k/yr. I live poor, I look poor. Life would be less stressful for me if my wife worked a job.
Why doesn’t she?
Is her being a stay at home wife (mom?) something you agreed upon? Best to have a conversation before resentment builds.
I love your milestone videos. It helps me look forward to hitting those goals eventually and knowing what the next goal should be. Great work guys.
Best episode in a long time! Great job!
I like the Masters polo.
I did that calculation with the Nvidia stock I sold 10 years ago 🤦🏻♂️ lol
This was one of my favorite and most informative videos I’ve watched from you guys. Great work fellas👊🏾🙌🏾😎
I’m a bit confused , what do we prioritize first the employee 401k or the IRA ?
Does the April 15th deadline apply to 401k contributions the same as they do for an IRA ?
As usual, he is so excited
Great video 🔥
I got all 7! Neat!
27 years old and have 2 more to go! Think I need the income to increase to max the 401k, but I’m getting close
What exactly does the monthly debt include? Just my main bills or going out to eat and such as well?
Pretty sure, monthly debt (#4) are the monthly payments for mortgage, car debt, student debt, consumer/credit card debt, any private loans you have to pay back on a monthly basis.
Main bills, going out to eat and whatever else you spend in a month = monthly spending (#7)
@@ladypanther3thank you
Crazy to think I’ve hit that stage at age 26!
My only concern is that I could get my income out of the Roth IRA income limits in the next 3-5 years or so and can’t do mega back door Roth IRAs. I guess brokerage will keep being pushed
The BEST financial milestone to reach is when you are educated enough to manage your own finances without paying a CFP an absurd yearly 1% to 2% of your assets!
Ehhhh. I'd posit that the milestone of having the financial literacy and discipline to even consider a CFP is a bigger milestone
You've basically already won the game if you're knowledgeable and skilled enough to generate the investments and resources that a big CFP would consider taking you as a client
@@rayzerot Most people are just trying to make the million mark, and that is greatly helped by being financially educated so that you don't waste 10%, 20%, 30% of your hard earned assets paying an AUM over years to a blood sucking CFP.
@kendarcie6613 which is why they always say take the free content while you're in the wealth building phase, then take the relationship to the next level when complexity warrants.
Don't know how it works in other countries, but here in India, we have many fixed fee certified financial planners as well. They'll charge you anywhere between 500-2000 usd a year and help you manage your whole portfolio. Much better than a percentage based fee.
Rock on troll! Complain about AUM.. but listen to a channel with an AUM model🎉
Shoutout to the production team. The graphics have gotten much better since I started watching about 2 years ago. Keep it up team!
So imagine spending 30k on a singular day that you get zero dollars from at the very start of your journey… wedddings!!! The single dumbest move people make financially in their lives. I spent 6k on mine 140 people fed. 6k in money gifts back after. So zero loss! Make the right choices everyone
Should number 7 be last step? I did 1-6, 8,9, then currently at 7
I’m currently investment rich but don’t own a house. How can I work toward short-term goals like owning a house (in the HCOL area) meanwhile still investing 25% for my future?
One big milestone is when your portfolio is big enough to grow to your target for retirement by itself without you needing to invest anymore.
Everything you invest after that milestone is to have a more comfortable retirement or retire earlier.
@@maxinoume that's more a networth milestone than a cash flow milestone. Basically it was covered in another video.
@5:25 60% of US households do not have $1,000 in reserve for an emergency. Hey...that was us 8 years ago. Today we have 10 months expenses in reserve, no debt, we are maxing out our 401Ks, putting $1,000 in a taxable brokerage account and still adding to our savings. Was it easy? No. It was very difficult and exhausting. Was it worth it, would we do it again, is our stress level lower, are we optimistic about our future? The answer to all that in a single word...yup!
Congratulations, nothing worth having is easy. That’s an achievement worth celebrating.
31 and working on #7!
12 and working on step 8
I’m 31 investing at least 25% as well. Doesn’t that mean we’d need a 51% or more savings rate to hit this milestone?
Mortgage/rent, bills, kids, leisure, and taxes are all expenses
#7 Is true Financial Independence.
Dante's! Man that place was wild!
Putting pension and social security COLA increases into a brokerage account where it can pay you monthly and grows with the stock market.
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
When they say you need to save x% at Y age to recover Z% of your income in retirement, I am presuming this is based on the idea that your expenses never change from the point you start saving that amount?
I have been saving over the past 5 of so years but my income has more than doubled. My expenses haven't more than doubled but they have increased and in retirement I would like to have an expense limit of around the amount I am spending now, not 5 years ago when I started.
Does anyone know more details on the maths here or are we just better off doing a cashflow model?
thanks!
What we did when we started earning more was to raise the amount of savings in a few steps to 30%. This was easy because of the raises in income. In effect we were saving 4 times the amount of money compared to when we started. I set up a spreadsheet which allowed for 'what-if' tests to check different scenarios. In the end we retired far earlier than we had planned, as our investments brought more money than we planned. What we learned is that active planning is the best way to go, at least for us.
I would like to add that milestones will be different for each person depending on what stage of life they are in. I save $100 out of my first paycheck at age 15 because I had 0 bills. My Mom took me to the bank to open a savings account. I was a homeowner at age 19 with mom's help. I didn't save anything at that point. Everything went to my home and family. New appliances, carpet, lawnmower, furniture, diapers, etc but I was creating a ton of wealth due to sweat equity and house hacking. I paid off the mortgage at age 24 and bought another property at age 26.
Is that $1000 a month include employee retirement savings? Or in addition to?
"Bryyyyyyan I am so excited bout this" lol
"Brian I am so excited..."
15:03 So you're saying there was a Dante's inferno?
Hahaha that's great. I thought it was great that he just casually mentioned that there were alligators in the lobby. I wonder what the rest of the "crazy stuff" was.
Can't wait for my army of dollar bills to reach their "bowling point"! Haha thanks B&B for your content!
We need to meet Mr. Moro
Even in the Army in 1968 I was saving$50, $ 250 would be the equivalent today.
I paid $100k in federal income tax for the first time this year. I don't feel like celebrating that milestone....
DAYUM
Our mortgage (P&I) is 800/mo no other debt. House is almost paid off. We invest around 4850/mo which equates to 35% of our gross income. I guess I need to stop worrying so much about our finances
You're doing a good job.
I think the team needs to add a Nintendo Wii bowling graphic/sound every time Brian says “boiling” 🤣
What about 5-digit/month savings? Some of us have a lot of catching up to do (with thankfully big shovels). I guess that is just the last milestone.
Definitely not hitting them in order but checking a few of them off.
I'm 24, apparently I need to have 7 celebrations. My savings/investments is 67% of my income
Good morning! Love you guys! Thanks for all the priceless knowledge you provide. Have a blessed day! 🎉❤
For the love of god, use chapters feature thats built into UA-cam. The comment with time stamps is one of your subscribers doing your work for you and he should send you a bill for that
instructions unclear, I save 1000 bucks a month but when I go out to celebrate my account is empty.
"BOWLING POINT!"
I wish the would talk about Roth Ralph 😂😊
They*😊
Do the contributions to the 401k and roth ira counts toward the 1,000 /month goal? Or do the 1,000 need to be additional?
@@JoseMunoz-cs8le they absolutely count. They even say that's the majority of most people's investments.
~25 years ago, my first milestone was saving 3K so I could open an IRA at Vanguard. It took me over 2 years.
Roth IRA's are NOT tax free. You are taxed as throughout its lifetime on what you put in and it makes in dividends. It's pretty much the same as a normal Brokerage account, but it gets capped.
20:46 go for a walk? 😂 no danger of getting carried away here.
I have the first 6 covered, sometimes #7 but other times not, depends on the month you look at me. But close each month.
Is Beau excited?
Where am I putting the $100 a month to invest ?
I have always put it in my emergency fund
S&P 500 index fund is the popular, reasonably safe, long term answer.
Fondue spot that burned down? Don’t gloss over that.
Why would you save 25% for retirement? If you start early 15% is probably too much as well. Why would you not save the gap in a taxable brokerage. Retirement accounts are great but they reduce flexibility. 1 million dollars in your 30s in your retirement accounts that's inaccessible seems pretty pointless, unless your goal is coast fi.
Bo, How many people are still working on advanced degrees in their 20s so that early 30s actually is the logical time to start saving?
So saving $100 translates into investing $100. Right?
No. Saving is holding onto your money in the bank. Investing is putting your money into an asset so that the asset can make you extra money.
@@ColbyBarradas got ya. Thanks for clarifying for me.
I invest 25 percent of my income but my TSP isn't maxed out because I don't make enough money 😂
If someone withdraws some of their basis from their Roth IRA, can you later put that amount back into it that doesn’t go against your yearly contribution limit?
Nope. It's not the same as a 401k loan. All the more reason to cherish those Roth IRA contributions each and every year.
When they said "cashflow" I assumed they meant dividends and interest from your wealth - it IS a milestone when your CASHFLOW reaches $100/month!!! BUT ANOTHER saving video is dull...