When I get 8 hours of great sleep, wake up completely rested and with zero aches and pains, and get up and have a great coffee and it´s sunny and warm and I have food to eat and my bills are paid, I feel like a millionaire.
I see this on my street, I’m no way well off financially, but I’m doing ok. But when I’m invited round to a neighbours house and they have nothing in the house and sleep on a mattress on the floor I’m always shocked when they have a brand new BMW , Land Rover on the driveway it blows my mind
@@groberti I was once a minimum wager !!!! At one point, I had to beg for social assistance to pay rent. Another point, the business I had started with next to nothing in the bank, almost went bankrupt, but I knew how to avoid it (legally speaking) thanks to the skills I learned while living off of next to nothing. I know exactly what it's like to pay rent and food, often times with almost no money left over, and in debt with bills to pay. I've always, and I really mean it, I always blamed myself and no one else for my situation, it was always on me to improve. Don't give up, you can do it, it's 100% on you to find a way out! If you make excuses, and blame others for your situation, you'll remain where you are.
I see people's salaries all day long as I do loans, people making 60k and getting 65k car loans. Live a no debt life outside of a mortgage. Invest everytime you get paid (pay yourself first). Love Nischa's advice.
This is apparent when we look all around us every day. Brand new cars worth 50 or 60k in areas where average income does not correlate with that type of purchase. Lack of foresight in my opinion but each to their own.
As the world crisis progresses the smartest thing people do lately is building a strong investment that isn’t controlled by the government. Like digital currencies.
"When most people say they want to be a millionaire, what they might actually mean is "I’d like to spend a million dollars." And that is literally the opposite of being a millionaire." - Morgan Housel
Cor-rect! People who win the lottery spend all the capital instead of investing and living off the income from that investiture. If you choke the chicken, it won't lay any more eggs!
For 20 years, my wife and I watched almost everyone around us, drive around in newer and more expensive cars than we had, they lived in a much nicer home, and annually went away on much more expensive vacations than we did. These days, we have a new more expensive car than most of the people around us, we've been able to retire earlier than most worry free, and we can go on top end travels whenever we please, to a point that we needed to take time off from travelling to recharge the batteries. No one knows what we have, not even close family members, and the skills we learned how to stretch a dollar, remains as important as ever. While in savings mode, we still had plenty of fun in our own way, and to this day, we have fond memories of our low cost travels, our dependable and practical old vehicle (kinda miss it, believe it or not), etc. We had plenty of fun, with no regrets at all!
There will always be someone richer, more beautiful, healthier, smarter, more status... the pursuit of all this imposed is a senseless waste of one's own life and true goals
Very true. Comparing with others will only make a person miserable. Never be in competition with anyone but yourself. The best way to save money as well as to be happy is to ignore all ads and that includes your friends telling you about stuff they bought or have, because those are essentially ads too. Buy nothing that you don´t absolutely need and then occasionally buy something that you really want, but only if you can afford it without risking being in debt or losing your home etc. This is why I have chosen not to have a TV for over 20 years now and block ads on social media and the internet as much as I can. I also don´t go to shops much anymore and shop more online. When I go out, I mainly go for walks when the weather is good and that is absolutely free and good for health! Cook at home and enjoy nature outside. Bring a drink and snack with you and then no need to spend in cafes etc unless you feel like it, which ofcourse is fine too occasionally.
You must learn to live below your means, this means being content with what you have. You don't have to constantly buy everything you see or everything that someone else has.
There is a cost to having a longer commute and it’s in non monetary terms, stuck longer on choked roads, standing in overcrowded trains (When they are running) and raising stress levels before you even get to work, so consider the health benefits of doing a local job you enjoy and make sacrifices, you’ll live longer.
My commute is about 50 minutes - I actually consider that pretty good - and it's one of the best parts of the day. I'm alone! When else can I say that? I read or listen to stuff that interests me, essentially pursuing my hobbies. Of course, it helps that much of the commute is on the train, I don't have to concentrate on driving.
When I started working at the age of 18, I was barely making 600 euro per month. I had to pay rent, food, and bills in my country. Even with this, I still managed to save 250 euro monthly, which was around 3000 per year. It was not much. But this habit stayed with me until today, and I keep using it after moving to Ireland. Then I see people complaining about prices and unaffordable costs. But I have so much money even with an average national salary as I learned of self-control from my early age. Next year, I will buy property with my savings back in my country Croatia, and I will probably pay it off in 3-4 years. Life is not balanced. You either spend or save
Lifestyle creep didn’t happen to me, I’m driving the same car, I move to a cheaper rented house share every time the price goes up and I cook most of my meals and budget for everything. Can’t say the same for my friends who care about designer clothes, parties and the higher purchased car.
One secret to becoming a millionaire is paradoxically growing up poor. I was dirt poor growing up and never had a single luxury. When I moved into a high paying job, I never had a taste for champagne or caviar, had no idea what “Hermes” was and only knew how to make cheap meals. Living below your means makes you a millionaire pretty quickly.
To get to the point. The death of happiness is comparison. Comparing yourself to others or what you would rather see is nonsense. Be grateful for what you have.
Being rich isn't having a lot of money. Being rich is not having any debt. Being rich is having meaningful people in your life. Being rich is being loved by friends and family. Being rich is enjoying every day with good health. Being rich is a lifestyle that incorporates a positive mindset. Life is precious. The fact that we are breathing, and are gifted with consciousness to be able to enjoy life's gifts, should make a person's perception of wealth. Be passionate about life and the people in it, and the money will follow.😊
Careful about thinking that all debt is bad, that's actually the wrong approach. Not all debt has to be bad, there's "good debt" to have, think of "good debt" as if it is a tool that you are renting out to complete a difficult, but worthy job. Like most of us, I was taught that debt was bad and should always be avoided as much as possible, but I used debt to pay for an education, which has long ago paid for itself many times over, and after I started a business, applied some borrowing to invest strategically, knowing the risks, with a backup plan in place should it fail. Not everything worked as planned, however I could always recover given that a failure was planned for, and more so than not, the strategic investments became a highly useful tool to help grow my business. The skills I learned were later applied to my personal investment portfolio. I personally borrowed a lot of money through a flexible line of credit (LOC), which has earned me a lot more than I ever imagined was possible. I lost on a few investments, but again, it was planned for, and no big deal, what mattered was earning more than was lost. These days the bank I'm working with loves me as a customer, and believe it or not, I love the bank that I've been using. Edit to add: I'm always carrying some debt load, even though I can easily pay it all off, it's actually earning more, or costing me less depending on the situations, than if I did not carry the debt. It's important to not over load on debt, and to carefully manage it on strategically targeted investment, and always expect and plan for the inevitable situations where your investments go the wrong way. Debt on depreciating assets, for example a luxury vehicle that you do not need, is usually an example of bad debt, but believe it or not, in some cases, paying for the vehicle in cash, can be more costly than borrowing or leasing to buy it. Me, I lease, it's technically more expensive than paying in cash, but the money not allocated to the vehicle, is instead working for me in better ways. With a business, the lease can be written off as a legitimate expense, reducing the costs from tax otherwise taken away.
Utter nonsense. Yes, London is expensive but £70k/year (£44,525 after tax and student loan payment) covers food, transport, rent and utilities easily even here. On half that, you'd want to look for some flat mates, but still not be in poverty. For people on very little, often with dependents too, poverty is a very real and horrible thing, so don't go conflating that with whatever your misconception of poverty is.
@@ratsliveonnoevilstar1 I mean, sole income providing for multiple dependents is not ideal anywhere, but when I said 'easy' on 70k I'm talking a flat with extra bedrooms acting as home office and lounge, and upmarket groceries for one, so it could be you use those rooms as bedrooms and shop at Lidl. So the budget should stretch to cover some family. I've not been in that situation myself but I'm pretty sure quite a lot of people get by like this. However I imagine at that point it'd be a no-frills slog. On the flip side, you could have more household income if that family includes a partner. Even just help at home so you can focus on work makes a big difference.
I would love to be a fly on the wall for a conversation where someone on £70k tells someone who is _actually_ impoverished, "we're basically in the same boat"...
As Mr Micawber said:- "Annual income twenty pounds, annual expenditure nineteen pounds, nineteen and sixpence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and six pence, result misery." Always live below your means.
It’s the same over here and now we seem to have the added problem of “new builds” which are apparently built too quick and laden with problems. 2 bedroom house here in the North West are starting at £260,995. A quick go of the mortgage calculator and you need to deposit £30,000 and be earning £40,000 a year to get a mortgage.
My entire work life I never made over 6 figure. I didn’t own a house. I bought 3 yr old used cars. But I had no stress from being in management (never got promoted) and had done a lot of travel and activities I enjoyed. I retired early 2 years ago with a small pension (half of my old salary) and savings in retirement account. I bought a retirement home using cash I saved aside over the decades. I have no debt and no worry about money. I thought about the trade off a long time ago. I may not have a whole lot of money and no work title but what I have is enough for me (I have no one in my life).
You have reading comprehension issue. I bought used cars that were 3 years old to drive until they couldn’t be worth fixing. The current car I have is a 2003 Honda.
Easier if you decide to not buy anything you do not absolutely need and just make do with what you have for one week and then you start to see how many things you buy are not necessary and start to buy less.
Naval says the same thing - a consistent income makes people feel secure and so they become cavalier with their finances. When I was younger I didn’t get why the boomers told me to save but glad I started when I did.
:30 because they live above there means. :45 they make more money they buy bigger homes and toys so they don't get a head. What she is saying, stop living above your means. Get on a budget, save money first, then spend what's left over. Don't go into debt. If you can't pay cash that means you can't afford it.
@@bastron5 but wise millionaires who stay rich have the ability to pay off their debts quickly if they were forced to do so. They don't borrow more than what their assets can cover in a pinch. But most other people who borrow money don't have the assets to pay off their debts quickly; they borrow so they can spend more than what they can afford, rather than borrowing so they can let higher-earning assets continue growing.
Indeed, most people downplay the roles of financial planners until burnt by their mistakes. productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to Read more
What impresses me most about David is how well he explains the basic concept of winning before letting you use his trade signals. This goes a long way to ensure winning trades.
I'm an advocate for having a diverse investment strategy. I grew to a 7 figure mark with my portfolio having exposure to different areas of the market, including small and large-caps of the ETF index, blue chip stocks, coins, grade bonds and alternatives like cryptocurrency markets, as this helps manage the overall risk on my portfolio managed by my FA.. Credits to my adviser David, i have no doubt investing more
Wow I know Mr David Christopher platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not he outperforms i will always stay invested as his methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit.
I think the answer is London. 100k isn’t a lot in London. I earn more than that, I basically live paycheck to paycheck. Being single in London is super expensive.
The problem is inflation and things getting more expensive beyond the inflation rate. Salaries do not keep up. 100k is just a number. Tax brackets are not adjusted to inflation, most people at 100-130k are paying way to much tax. Things needs to change!
Interesting video. I'm 19 living with my parents (house paid off Alhamdullilah), but I am the top earner of the household. I grew up around friends with even lower incomes than my family, and we always dreamed of having all of these materialistic things like a nice watch, nice car etc. It's really hard not to want these things as somebody who has no rent to pay, but I will be putting my deposit on my first ever property when I finish my studies at university (or before, but unlikely). Anyone young like me knows how easy it is to get influenced to splash once you get your first pay check, but videos like this remind me that if I really want to be that guy, splashing more and more as my income goes up will only leave me broke when it's time for me to move out. So enjoy while you can, and once you can't, I guess you have to get serious. P.S. I can really relate to the Diderot affect. Crazy!
I read in Rich Dad Poor Dad that people often think that having more money or getting paid more would solve their financial issues but having financial literacy/education would be more beneficial than having more money. Something I myself am trying to improve on
@@ThekZnation You don't understand finance. His in Billion in debt but in very well manage. He can sold some of his equity to pay off debt and increase cash-flow. In fact he can just sold half of his equity to pay off all his debt. He still be rich AF. Debt is a tool. Think carefully before you get yourself in.
@@ThekZnation who said I’m learning from him? I just read his book….doesnt mean I think what he says is the gospel….unless something has changed that idk about?
@@tvb4227 Debt is always a liability and never an asset. At current interest rates during the past year or 2, he needs to provide ~100mil a year purely in interest. Why do you think he's threatening that if he goes bust, the bank goes bust? Because he can't provide that LOL
The investment you choose isn't right or wrong, just depends on the kind of business person you are or simply the kind of person you are. However, the end game is investing money long term creates wealth every time. Just pick what you like and understand, invest and it will pay off. A lifetime of investing for 5 mil is not hard to accrue.
Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do.
Investment is the quickest path to financial freedom, the rich stays rich by spending like the poor yet investing! While the poor stays poor by spending like the rich yet not investing. it is good thing to start your Financial freedom this year with good investment idea.
Many people are still getting fantastic returns on their investments during this time. Simply maintain a strong sense of reality or ask for professional assistance.
When I started my first job out of college I was earning $1000 cdn a month. It was a sales job and we only got paid when we sold and worked with clients (personal trainer). This job taught me how to be smart with my money and I still managed to save. Now I'm making almost 7-8x in a month what I was making before, but I still spend and save like I'm not. I still have the same car, mostly the same clothes. My cost of living changed because I moved out, but other then that I still save/invest the rest after bills have been paid.
£100k translates to £5.5k monthly Net pay. Outside of London you can have a mortgage around £1,000 per month and a nice car for £500 per month. That still leaves you with £4k a month for food, bills and everything else. If you cannot save at least £2k a month from that, you're doing something wrong 🤷♂️
Why do people need to upgrade. I make $150K and have about $2M in property. I feel comfortable but not rich. I could care less what people think of me and whatever everyone else drives or wears I find amusing. Important to me are genuine friends, honest women, a good cup of coffee and a nap.
I have rearranged my entire budget becouse of you and my mind is automatically adjusted to minimize cost all day everyday thank you I have downloaded the budgeting tool and will be making good use of it🎉
I am an Engineer on a salary in mid 30k-40k, living in midlands. I never lived in London but learnt pretty quickly that 30k in the rest of the country is equivalent to 100k in London. I have a house, decent car (above the banger category 😂) and gained 10k savings within a year in the role. Pretty content with that, I'm neither stingy nor extravagant. You can do well with £30k income if you avoid 5 of the 7 deadly sins.
I think your one of the most honest reply’s I’ve seen , I’m only on 24000 a year,my wife earns more in accounting, both me and my wife work and have bought our house from 19 years old, life has had its ups and downs but we have been comfortable in life , yes we could have lots of debt and posh new cars like everyone else but we don’t and we’re very comfortable and never worry about bills. We eat out twice a month but easily enjoy simple meals during the week too. Best of luck 😊 in your future endeavors. Shrewsbury
Thank you for the awesome advice. It will help many. For me, luckily I am naturally frugal. I take such pleasure from the simple things: sleep, good coffee and meals at home and hiking, gardening and exercise!
Your take home will still be over 67K if you’re on a 100K salary. you only pay the 40% tax rate on the 49k you earn over the £50,270 threshold for 20% income tax
That lifestyle creep is insidious. We're all really bombarded with highly tuned messages to "spend more" and it's hard to fight. You really need to surround yourself with people and media that reinforce your own preferred message.
I work in property management mostly affordable housing. 24/365 ubereats, doordash and Walmart deliveries. You can't be doing that bad if you have delivery fee and tip on top of food that is marked up 200% 300%.
I'm one of these people but I still go with the rule to never overpay for something. Example, the car market has gone mental the past few years so the car I bought for £38k 4 years ago costs £45k now. So even though I want to buy a car the past couple of years, I'm not. I'd rather wait for opportunities to buy. I do the same for shopping in general. I also put my savings into investments rather than the 4% savings trap. One more thing about pensions, from a personal experience, they are not set in stone. When I left Greece my parents pension got slashed in half because of the financial situation in Greece. Pension funds do not guarantee you'll get your pension.
Another reason for high earners being broke is because of high consumption (Ref: Millionaire Next Door). People living in a consumption lifestyle will realize it comes at a personal financial cost.
Nischa's content is first rate... definitely worth listening to. Beyond that she is drop dead gorgeous which doubtless brings viewers. Beautiful, intelligent producers will always succeed. I'm happy for her and always appreciate what she has to say.
So good video. Thank you. Everyone knows that if you earn more, your lifestyle must be increased just a little bit, but it is so difficult to do. A good strategy could be having some things that make you feel rich but without a monthly payment, for instance renting a ferrari just for a few days, or going to the best restaurant once a year, etc.
On that same note sometimes leaving the once unattainable such as the Ferrari as a treat (renting it from time to time) keeps the inferred value of it. I mean think about all the simple things you wanted as a kid that now you can buy like it’s nothing. Not speaking for every scenario but in some cases, it’s become so accessible, it’s lost its “value” Nothing gold can stay - Robert Frost
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Claudia Jenkins.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
What impresses me most about Claudia Jenkins is how well she explains basic concept of winning before actually letting you use her trade signals. This goes a long way to ensure winning trades.
Your comment about driving old banger in nice neighbourhood reminded me of the time we moved. All our neighbours had nice fancy cars & we had a beat up renault.
Hi Nischa, great video as always. I was wondering if you could talk about the specific financial considerations people might have who are childfree. Often financial advisors are encouraging you to maximise your wealth so you can pass that on to your children but that is not the dream of some (it seems increasing number of) people. We would rather optimise our finances in a way that suits this lifestyles, however the traditional financial products are not always suitable. I would be interested in hearing your thoughts.
Dear Nischa, Thank you very much for this interesting video. Let me allow one further question: What does reach mean? To be free? To do what you really love? To eat good organic food? To be healthy? On the other hand: Why would somebody become wealthy? Save money for the future w/o purpose is pretty dump (sorry for my language). Everybody should trade off between now and future. For instance: Why should you wait for being retired to start your most lovely stuff? Live today and save money if you can afford it. The one million dollar will not buy your youth phase. I am struggling a little bit with the purpose to become a millionaire. Just have fun in your life and do what you love. The money will come, trust me .
it's amazing how people view "necessities". unfortunately, some people think you're mad or asking them to give up fine dining or luxury goods. laziness also comes into play, i know a couple who eats out all the time saying they refuse to cook at home. not even a negotiable. it's the society we live in.
Yeah eating out is ridiculously expensive, it’s one of the easiest things to save money on. There’s nothing wrong in principle with blowing money on loads of takeouts but you can’t then moan about being a victim of circumstance when you can’t save.
I've worked really hard and been really fortunate. Just five years ago (at 30) I was working (hard in) an entry level job and I've gotten two promotions since - I did one upgrade; from surviving to being able to do a few little things, and now I'm saving 15% of my income every month. I've gotten rid of all my debts except a mortgage and have become a tight budgeter. In theory I have it really good (I'm at six figures Australian - which is nowhere near six figures in GBP, EUR or USD) BUT because I don't have a safety net (family to fall back on, financially or residentially) that 15% saving still feels very stressful. I need those savings because if my cat gets sick, if my car breaks down, I MUST use those savings. So I still feel broke, strangely.
I'm slowly getting better at this type of stuff as I've recently increased my pension contributions to 31% including the 10% put in by my employer and have started to max out my ISA allowance each year (£20k). I'm also making large overpayments on my mortgage in an effort to pay it off sooner rather than later. In regards to the later, it became apparent that the £170k I have left on my mortgage to run 16 years was going to cost me £240k (£70k interest) thanks the the jump in interest rates of late, however, if I paid off £90k (equity from a BTL property I've just sold) and took the remaining £80k over 6 years then it would only cost me £91k (£11k in interest).
Also the fact of normalization... buy an expensive new car.. after a while you feel the same as when you were when driving the banger.. result you need to upgrade again
Good advice. I’ve lived within my means all my life and last year was able to retire early. When I told my boss I was retiring, he admitted he would like to do the same, but he had a mortgage for a big house and both him and his wife had loans for new cars. Too many people must have the latest and greatest “stuff” and think it will make them happy…it doesn’t!
You forgot to mention about “magical” bracket of 100k-125k, when earning more money within this range doesn’t actually make you earn more money as you are effectively paying taxes at whopping “60% rate”
Great video! It is pretty accurate. I live in LA, no debt with a professional job and no roommate. lol, And let me tell you people around me look wealthy and well-off but are drowning in debt and living paycheck to paycheck.
Extra-curricular activities for kids isn’t a pointless life upgrade like a car or some more snazzy interior decor IMO: it’s an investment in their future, their opportunities, their health and their wellbeing. Obviously there’s a difference between music lessons/football coaching etc and buying them a horse!
Moving out of london to anywhere in the stock brocker belt which is generally the areas outside the m25 comes with higher transport costs and houses prices are still relatively expensive
My advice is not to buy something that you can still use like car/phone/shoes/etc and don’t eat and drinks too much in restaurant. This is the main reason of big expenses I would suggest to cut CC or tried to not use a lot of CC to buy luxury items. Use you cc to pay bills, utilities, etc and set up a direct debit so don’t missed out the payment and you can earns points and it’s good for your cashflow. Avoid Car loans and save money to pay the deposit for a property
Brilliant - cannot agree with you more. It takes lots of discipline and strong mind to control the spending, when one is earning 6 or 7 digit income. That is why I see many blue collar job earner having more wealth in their retirement than many doctors or high earners. Because they live simple and happy life without getting in the race to show off.
Back then it did before 2010, but not now. Everything is so expensive. Need to live below your means, buy assets, and build a scalable income stream. Takes time but it pays off
The picture in the thumbnail is so sad 😢 lol. 2 things, my saving hack is I got rid of my Audi S3 in 2021 and it’s saved me around £10k a year, plus I don’t pay into a pension because I’m not expecting to live long enough to have it.
Lol nah I don’t see the point in saving it. I worked out (I’m 36) I’ll probably pay about £6k a year, for the next 36 years (£200k+) that I would only get to spend when I’m old and crusty, F that, no offence. Plus I smoke. I think everyone’s assumption is we will live forever but it’s just not true for a majority of us. My mum died 6 years ago at 52, didn’t smoke, didn’t drink. So what chance do I have of old age? Might as well enjoy my fruits whilst I’m young enough to eat them.
Amount of money means nothing. I live in Zagreb, Croatia. Our household take home income is around 8k euro per month (wife a doctor, me as an engineer). We live in a 3br apartment in an affluent part of the city with alot of dispoable income. I think our accomodation expence amounts to 10% of our take home income. Whenever offered a job in e.g. London, first thing I ask is if paycheck will allow me to live in a 3br condo in affluent part of the city. If answer is no - there is no point in any further discussion.
Sorry to say, but you cannot benchmark UK and USA. UK has PAYE so the taxes are taken before you get the net pay. In the USA, it is legal for all employees to be employed as a business and therefore can claim expanses against their business such as travel costs, stationary, printing, sundries etc. In the UK where this existed, the government closed it via IR35. Therefore $100,000 is jot the same as £100,000 salaried. Also, in the USA, cost of items is alot less as a general thing, so it's more like £100, 000 is £150,000 including exchange rate variances.
private school fees and university care, child care, mortgage, designer clothes, 2 expensive holidays per year in 5 star hotels, expensive dinners at Michelin restaurants, expensive lunches, champagne, alcohol, expensive car payments, buying expensive presents, buying expensive jewelry, having your money in the wrong type of account, investing in the wrong things, credit interest.
Here in the US it's car poor. People with 60k salaries should be buying 20k vehicles but are buying 50k cars. the 100k people should be buying 40k cars buying 80-100k cars. these 700-2400 car payments not including insurance or maintenance. But if you look everywhere people own 40-70k pickup trucks. After tax a person making 100k in NY state for example is brining in 6k a month. 1777 in average mortgage and 700-2400 car payment, of coarse they feel poor and paycheck to paycheck. I like cars but as a car person I was into the cheap muscle and rally cars, mustang, golf, charger, camero, civic. Cars where you can get decent used for 15-23k. Once i saved up and mortgage paid off, investments making money etc then i can spoil myself a bit. But many people as soon as they make money want to live the dream. One of my first jobs was working warehouse i had a beater volvo you only made about 2100 a month but everyone was driving BMW and audis and pick up trucks ie 600-900 car payments.
*The statistics on how many high earners are broke is so fascinating and is a perfect example of it doesn't matter how much you make if your financially illiterate financial education is so important* 😁
I work in structured finance and was employed until 2019, at which point between salary and commission i would take home around 12.5k per month, which I felt hard done by. Since 2020 ive run my own company and I turn over around 675k per annum on average. I honestly think I lived more sensibly on a PAYE contract.
The best thing to happen was during the pandemic when remote work became more available. Now you can live in a cheaper area and work for an employer in those high cost living areas. It's hard to find six figure salaries in areas when it only cost 20 or 30k to live there. Usually the income is more like 50 to 60k. The key though is to spend like you are broke and save like you are rich. Balancing is key though. I always think of the scenario where someone saves their entire life to their retirement date, and then keels over the day after. Save first, and spend wisely is the best scenario.
The big problem is lifestyle inflation. That is, as one's income goes up you start spending more. The key is to keep your spending the same even if your income increases. Thats how to get wealthy.
Most young people do not think of retirement, they won't contribute to their retirement account. They thought retirement is so far away. I have talked to my relatives, they don't think in advance and prepare for the future.
Its not how much you make, its how much you save thats important. Also agree on point 2. New house, new furniture, new car then a NEW WIFE. The house then becomes a very expensive purchase 😂
Facts: With so much credit available, many college students are skipping the poor college student phase and instead are living like they already have a high paying job. Once they actually get a high paying job they increase their spending way more. What does this do? It causes a huge amount of wasted money and financial clutter. If you were taking 2 vacations per year as a student you'll probably try to take 5 or 6 as a well-paid employee. If you were spending $1000/month on food and drinks as a student you'll probably spend $2000-3000/month as a high paid employee. You can either live like you're poor to be rich, or you can live like you're rich to be poor.
I always found it strange that people from west count their salary BEFORE taxes are paid. Hewre in Serbia, when I say I earn 10.000 eur per month - that is 10.000 eur in my hand, after all taxes to goverment are paid.Why would I even calculate how much is given to goverment, when this is done automatically? So when we talk to employee, we don;t even mention money that is gogin to the sate - we talk about what we will have in hand, after all taxes paid. Because it is done automatically, I truly don;t know exactly how much goes to taxes. I know it is around 50% of whay I bring home, but who cares? I don;t tell to everyone that I earn 15,000 weur per month - I tell 10.000 eur.
Most countries in Europe are like that. All the eastern countries plus Italy, Austria, Germany, Spain, France... Salary is commonly discussed as Net monthly pay. For some reason in the UK, US and some other countries they like to say the annual amount before tax and social security (where exists). It's either a cultural/traditional thing or just a show off as it sounds better/more. 😅 Also, your employer can give you a 10% pay rise, so your annual pay grows from £50k to £55k; however your monthly Net pay will probably grow by less than 7%. So it's also a money saving tactic for employers 🤷♂️
I'm in the US so I can speak for myself. Taxes aren't necessarily deducted from our pay by default. It's easier that way, but I could tell my employer to withhold 0% for taxes. The following year I would be required to calculate what I owe for taxes and pay it then. So that gross salary IS what I get paid, I would just have a big tax bill every year.
If the tax rate is flat, then it’s alright to measure the net income. Most western countries use a progressive tax system, where the tax % increases with your income. In such a system, it’s much more clear to measure the income before taxes. If you increase your income or have multiple income sources, the tax % will increase.
@@inberyou mean if you earn x, than your tax is (for example) 50%, but if you earn 2x than it is 55%? In my country all income has same tax, with minimum income that is tax free, and for firms, there is a tax on gains (10%) and tax on extra gains (I don;t know how much it is, I am not that rich, so I never bothered to ask:). But in Serbia, everyone pays sam e% of their salarry in taxes - but we NEVER mention it, we just say "I earned" what you actually have in hand or account, after tax. I guess it is just culture - but also, when I listen how much is average yearly income in USA, for example, I get suprised about the amount, and also that people are complaining about it - but it makes much more sense if 50% of that goes on tax and other "must be paid" costs
When I get 8 hours of great sleep, wake up completely rested and with zero aches and pains, and get up and have a great coffee and it´s sunny and warm and I have food to eat and my bills are paid, I feel like a millionaire.
Yeah, Baby!
Facts!
Well said. It's the small things.
Amen!!
You have it figured out.
My partner always states ‘alot of people have champagne lifestyles on orange juice wages.’ 😂
Funny
My dad always used to say "champagne lifestyle on a beer budget" - maybe that's the Canadian version 😄
Champagne lifestyle, lager budget
Champagne taste on a beer budget 😂
I see this on my street, I’m no way well off financially, but I’m doing ok. But when I’m invited round to a neighbours house and they have nothing in the house and sleep on a mattress on the floor I’m always shocked when they have a brand new BMW , Land Rover on the driveway it blows my mind
In short: It isn't what you earn. It's what you keep that is important.
Sure
Tell that to a minimum wager
@@groberti I was once a minimum wager !!!! At one point, I had to beg for social assistance to pay rent. Another point, the business I had started with next to nothing in the bank, almost went bankrupt, but I knew how to avoid it (legally speaking) thanks to the skills I learned while living off of next to nothing. I know exactly what it's like to pay rent and food, often times with almost no money left over, and in debt with bills to pay. I've always, and I really mean it, I always blamed myself and no one else for my situation, it was always on me to improve. Don't give up, you can do it, it's 100% on you to find a way out! If you make excuses, and blame others for your situation, you'll remain where you are.
@@geekinasuit8333 I am not a minimum wager by far but thanks for the tips! 😁
I see people's salaries all day long as I do loans, people making 60k and getting 65k car loans. Live a no debt life outside of a mortgage. Invest everytime you get paid (pay yourself first). Love Nischa's advice.
Very true. Usually people who were poor while growing up live above their means.
This is apparent when we look all around us every day. Brand new cars worth 50 or 60k in areas where average income does not correlate with that type of purchase. Lack of foresight in my opinion but each to their own.
As the world crisis progresses the smartest thing people do lately is building a strong investment that isn’t controlled by the government. Like digital currencies.
Yes very true She replies very fast with that contact.
@jamewilliams7660 Cathie D Wood ?
Phwoar what a goer. The whole town has had a go.
"When most people say they want to be a millionaire, what they might actually mean is "I’d like to spend a million dollars." And that is literally the opposite of being a millionaire."
- Morgan Housel
Cor-rect! People who win the lottery spend all the capital instead of investing and living off the income from that investiture.
If you choke the chicken, it won't lay any more eggs!
But how do you make more money if you don't spend it?
@@MrBenHaynesNah. I'd pay for a house in full with a million and then just live off the rest. A million is enough for a decent lifestyle
Ud have to be a billionaire to be a millionaire
😂😂😂😂😂😂
For 20 years, my wife and I watched almost everyone around us, drive around in newer and more expensive cars than we had, they lived in a much nicer home, and annually went away on much more expensive vacations than we did. These days, we have a new more expensive car than most of the people around us, we've been able to retire earlier than most worry free, and we can go on top end travels whenever we please, to a point that we needed to take time off from travelling to recharge the batteries. No one knows what we have, not even close family members, and the skills we learned how to stretch a dollar, remains as important as ever. While in savings mode, we still had plenty of fun in our own way, and to this day, we have fond memories of our low cost travels, our dependable and practical old vehicle (kinda miss it, believe it or not), etc. We had plenty of fun, with no regrets at all!
There will always be someone richer, more beautiful, healthier, smarter, more status... the pursuit of all this imposed is a senseless waste of one's own life and true goals
Very true. Comparing with others will only make a person miserable. Never be in competition with anyone but yourself. The best way to save money as well as to be happy is to ignore all ads and that includes your friends telling you about stuff they bought or have, because those are essentially ads too. Buy nothing that you don´t absolutely need and then occasionally buy something that you really want, but only if you can afford it without risking being in debt or losing your home etc. This is why I have chosen not to have a TV for over 20 years now and block ads on social media and the internet as much as I can. I also don´t go to shops much anymore and shop more online. When I go out, I mainly go for walks when the weather is good and that is absolutely free and good for health! Cook at home and enjoy nature outside. Bring a drink and snack with you and then no need to spend in cafes etc unless you feel like it, which ofcourse is fine too occasionally.
You must learn to live below your means, this means being content with what you have. You don't have to constantly buy everything you see or everything that someone else has.
This is exactly right. The definition of a rich person is "A person that is satisfied with what they have."
She's right though that high paying jobs tend to be in high cost areas.
There is a cost to having a longer commute and it’s in non monetary terms, stuck longer on choked roads, standing in overcrowded trains (When they are running) and raising stress levels before you even get to work, so consider the health benefits of doing a local job you enjoy and make sacrifices, you’ll live longer.
My commute is about 50 minutes - I actually consider that pretty good - and it's one of the best parts of the day. I'm alone! When else can I say that? I read or listen to stuff that interests me, essentially pursuing my hobbies. Of course, it helps that much of the commute is on the train, I don't have to concentrate on driving.
@@kingbolo4579almost an hour ? that’s awful, lol I drive 15 mins and I’m at work and I don’t live in a town/city
When I started working at the age of 18, I was barely making 600 euro per month.
I had to pay rent, food, and bills in my country.
Even with this, I still managed to save 250 euro monthly, which was around 3000 per year.
It was not much.
But this habit stayed with me until today, and I keep using it after moving to Ireland.
Then I see people complaining about prices and unaffordable costs.
But I have so much money even with an average national salary as I learned of self-control from my early age.
Next year, I will buy property with my savings back in my country Croatia, and I will probably pay it off in 3-4 years.
Life is not balanced.
You either spend or save
iconic.
That is because of the high salaries in Ireland caused by their tax system that steals tax money from other EU countries and the USA.
I see that Nisha has a fan club here in Croatia :)
Tako je buraz! Zivim u Chelsea, London i koliko god da zaradim, svaki mesec uspem da sklonim sa strane. Sve je stvar prioriteta 😊
@@analovrak279 Not only in Croatia. 😅
Lifestyle creep didn’t happen to me, I’m driving the same car, I move to a cheaper rented house share every time the price goes up and I cook most of my meals and budget for everything. Can’t say the same for my friends who care about designer clothes, parties and the higher purchased car.
💯 agree.
I'd be somewhere in between these two groups
If those things bring joy then why not spend the money on them? But balance is important for sure
One secret to becoming a millionaire is paradoxically growing up poor. I was dirt poor growing up and never had a single luxury. When I moved into a high paying job, I never had a taste for champagne or caviar, had no idea what “Hermes” was and only knew how to make cheap meals. Living below your means makes you a millionaire pretty quickly.
To get to the point. The death of happiness is comparison. Comparing yourself to others or what you would rather see is nonsense. Be grateful for what you have.
Being rich isn't having a lot of money. Being rich is not having any debt. Being rich is having meaningful people in your life. Being rich is being loved by friends and family. Being rich is enjoying every day with good health. Being rich is a lifestyle that incorporates a positive mindset. Life is precious. The fact that we are breathing, and are gifted with consciousness to be able to enjoy life's gifts, should make a person's perception of wealth. Be passionate about life and the people in it, and the money will follow.😊
Although I agree, this sounds like a fairy tale approach.
Careful about thinking that all debt is bad, that's actually the wrong approach. Not all debt has to be bad, there's "good debt" to have, think of "good debt" as if it is a tool that you are renting out to complete a difficult, but worthy job. Like most of us, I was taught that debt was bad and should always be avoided as much as possible, but I used debt to pay for an education, which has long ago paid for itself many times over, and after I started a business, applied some borrowing to invest strategically, knowing the risks, with a backup plan in place should it fail. Not everything worked as planned, however I could always recover given that a failure was planned for, and more so than not, the strategic investments became a highly useful tool to help grow my business. The skills I learned were later applied to my personal investment portfolio. I personally borrowed a lot of money through a flexible line of credit (LOC), which has earned me a lot more than I ever imagined was possible. I lost on a few investments, but again, it was planned for, and no big deal, what mattered was earning more than was lost. These days the bank I'm working with loves me as a customer, and believe it or not, I love the bank that I've been using.
Edit to add: I'm always carrying some debt load, even though I can easily pay it all off, it's actually earning more, or costing me less depending on the situations, than if I did not carry the debt. It's important to not over load on debt, and to carefully manage it on strategically targeted investment, and always expect and plan for the inevitable situations where your investments go the wrong way. Debt on depreciating assets, for example a luxury vehicle that you do not need, is usually an example of bad debt, but believe it or not, in some cases, paying for the vehicle in cash, can be more costly than borrowing or leasing to buy it. Me, I lease, it's technically more expensive than paying in cash, but the money not allocated to the vehicle, is instead working for me in better ways. With a business, the lease can be written off as a legitimate expense, reducing the costs from tax otherwise taken away.
35k in the north of England allows you a fairly decent quality of life, 70k in London and you’re living in borderline poverty.
Utter nonsense. Yes, London is expensive but £70k/year (£44,525 after tax and student loan payment) covers food, transport, rent and utilities easily even here. On half that, you'd want to look for some flat mates, but still not be in poverty. For people on very little, often with dependents too, poverty is a very real and horrible thing, so don't go conflating that with whatever your misconception of poverty is.
@@dananskidolfso not really sustainable as a sole income for a family??
@@ratsliveonnoevilstar1 I mean, sole income providing for multiple dependents is not ideal anywhere, but when I said 'easy' on 70k I'm talking a flat with extra bedrooms acting as home office and lounge, and upmarket groceries for one, so it could be you use those rooms as bedrooms and shop at Lidl.
So the budget should stretch to cover some family. I've not been in that situation myself but I'm pretty sure quite a lot of people get by like this. However I imagine at that point it'd be a no-frills slog.
On the flip side, you could have more household income if that family includes a partner. Even just help at home so you can focus on work makes a big difference.
70k is not poverty but I see what you mean. A basic life style for the salary in London.
I would love to be a fly on the wall for a conversation where someone on £70k tells someone who is _actually_ impoverished, "we're basically in the same boat"...
As Mr Micawber said:- "Annual income twenty pounds, annual expenditure nineteen pounds, nineteen and sixpence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and six pence, result misery." Always live below your means.
Solid advice, Nischa, thank you! It's always crucial to resist lifestyle inflation and instead prioritize saving and investing.
Happiness is not determined by how much you have, but by how little you need.
housing is INSANE. I was looking at a townhome for my 22 year old and they now start over $200k. 3 years ago $75-90k for 2 bedroom
It’s the same over here and now we seem to have the added problem of “new builds” which are apparently built too quick and laden with problems.
2 bedroom house here in the North West are starting at £260,995. A quick go of the mortgage calculator and you need to deposit £30,000 and be earning £40,000 a year to get a mortgage.
@@carinaadams6797then imagine here in Canada….. a TH sold for over $1mm cad..
@@keyboardmanyoutube3189 ye but Canada looks nice
$200k??? Cheap - have you seen Australian houseing?
500k is starting point!!!
Not sure if I'm more in love with your looks, your brain, or your accent. But thank you for the advice. Great stuff.
It’s the accent. You’re welcome :).
My entire work life I never made over 6 figure. I didn’t own a house. I bought 3 yr old used cars. But I had no stress from being in management (never got promoted) and had done a lot of travel and activities I enjoyed. I retired early 2 years ago with a small pension (half of my old salary) and savings in retirement account. I bought a retirement home using cash I saved aside over the decades. I have no debt and no worry about money. I thought about the trade off a long time ago. I may not have a whole lot of money and no work title but what I have is enough for me (I have no one in my life).
lol 3 year old cars?? I’ve never had one less than 8 year old
You have reading comprehension issue. I bought used cars that were 3 years old to drive until they couldn’t be worth fixing. The current car I have is a 2003 Honda.
Not a “reading comprehension issue” if you didn’t mention those things in your original comment
Guilty. When the income increases so does the lifestyle. The hard bit is cutting back when you've been doing it for so long.
Easier if you decide to not buy anything you do not absolutely need and just make do with what you have for one week and then you start to see how many things you buy are not necessary and start to buy less.
Naval says the same thing - a consistent income makes people feel secure and so they become cavalier with their finances. When I was younger I didn’t get why the boomers told me to save but glad I started when I did.
:30 because they live above there means.
:45 they make more money they buy bigger homes and toys so they don't get a head.
What she is saying, stop living above your means.
Get on a budget, save money first, then spend what's left over.
Don't go into debt. If you can't pay cash that means you can't afford it.
Millionairs always pays with debts. Their interest rates are higher than the debt rate. So, they don't burn their money.
@@bastron5 but wise millionaires who stay rich have the ability to pay off their debts quickly if they were forced to do so. They don't borrow more than what their assets can cover in a pinch. But most other people who borrow money don't have the assets to pay off their debts quickly; they borrow so they can spend more than what they can afford, rather than borrowing so they can let higher-earning assets continue growing.
I love investment and i want to invest more and more
Indeed, most people downplay the roles of financial planners until burnt by their mistakes. productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to Read more
What impresses me most about David is how well he explains the basic concept of winning before letting you use his trade signals. This goes a long way to ensure winning trades.
I am surprised that this name is being mentioned here, his clients testimonies on CNBC news last week..
I'm an advocate for having a diverse investment strategy. I grew to a 7 figure mark with my portfolio having exposure to different areas of the market, including small and large-caps of the ETF index, blue chip stocks, coins, grade bonds and alternatives like cryptocurrency markets, as this helps manage the overall risk on my portfolio managed by my FA.. Credits to my adviser David, i have no doubt investing more
Wow I know Mr David Christopher platform maintains a unique perspective and is very transparent with their investors.
Regardless of whether or not he outperforms i will always stay invested as his methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit.
A great example of individuals deciding to take on more debt and liabilities the more their income increases! Great video.
I think the answer is London. 100k isn’t a lot in London. I earn more than that, I basically live paycheck to paycheck. Being single in London is super expensive.
Being single is super expensive anywhere nowdays
Is the housing cost taking over the majority of your post tax income? I find that to be the cost in London
To be the case*
What matters is not what you make, but what you keep!
The problem is inflation and things getting more expensive beyond the inflation rate. Salaries do not keep up. 100k is just a number. Tax brackets are not adjusted to inflation, most people at 100-130k are paying way to much tax. Things needs to change!
Interesting video. I'm 19 living with my parents (house paid off Alhamdullilah), but I am the top earner of the household. I grew up around friends with even lower incomes than my family, and we always dreamed of having all of these materialistic things like a nice watch, nice car etc. It's really hard not to want these things as somebody who has no rent to pay, but I will be putting my deposit on my first ever property when I finish my studies at university (or before, but unlikely). Anyone young like me knows how easy it is to get influenced to splash once you get your first pay check, but videos like this remind me that if I really want to be that guy, splashing more and more as my income goes up will only leave me broke when it's time for me to move out. So enjoy while you can, and once you can't, I guess you have to get serious.
P.S. I can really relate to the Diderot affect. Crazy!
I read in Rich Dad Poor Dad that people often think that having more money or getting paid more would solve their financial issues but having financial literacy/education would be more beneficial than having more money. Something I myself am trying to improve on
Learning financial literacy from a person that's more than a billion in debt 💀
@@ThekZnation You don't understand finance.
His in Billion in debt but in very well manage. He can sold some of his equity to pay off debt and increase cash-flow. In fact he can just sold half of his equity to pay off all his debt. He still be rich AF.
Debt is a tool. Think carefully before you get yourself in.
@@ThekZnation who said I’m learning from him? I just read his book….doesnt mean I think what he says is the gospel….unless something has changed that idk about?
@@tvb4227 Debt is always a liability and never an asset. At current interest rates during the past year or 2, he needs to provide ~100mil a year purely in interest. Why do you think he's threatening that if he goes bust, the bank goes bust? Because he can't provide that LOL
@@tvb4227 Looks like you're the only tool around here.
The investment you choose isn't right or wrong, just depends on the kind of business person you are or simply the kind of person you are. However, the end game is investing money long term creates wealth every time. Just pick what you like and understand, invest and it will pay off. A lifetime of investing for 5 mil is not hard to accrue.
Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do.
Investment is the quickest path to financial freedom, the rich stays rich by spending like the poor yet investing! While the poor stays poor by spending like the rich yet not investing. it is good thing to start your Financial freedom this year with good investment idea.
Many people are still getting fantastic returns on their investments during this time. Simply maintain a strong sense of reality or ask for professional assistance.
That does make a lot of sense, good for you though, unlike me, you seem to have the Market figured out. Who is this consultant?
When I started my first job out of college I was earning $1000 cdn a month. It was a sales job and we only got paid when we sold and worked with clients (personal trainer). This job taught me how to be smart with my money and I still managed to save. Now I'm making almost 7-8x in a month what I was making before, but I still spend and save like I'm not. I still have the same car, mostly the same clothes. My cost of living changed because I moved out, but other then that I still save/invest the rest after bills have been paid.
Not being funny, but £100,000 isn't that much these day's. 😮
Depends on the location. DT London a lot different than rural Durham.
True, that’s not much in London especially post-tax
£100k translates to £5.5k monthly Net pay. Outside of London you can have a mortgage around £1,000 per month and a nice car for £500 per month. That still leaves you with £4k a month for food, bills and everything else. If you cannot save at least £2k a month from that, you're doing something wrong 🤷♂️
@@vecsy90thank you.
Totally agree
Why do people need to upgrade.
I make $150K and have about $2M in property. I feel comfortable but not rich. I could care less what people think of me and whatever everyone else drives or wears I find amusing.
Important to me are genuine friends, honest women, a good cup of coffee and a nap.
I have rearranged my entire budget becouse of you and my mind is automatically adjusted to minimize cost all day everyday thank you I have downloaded the budgeting tool and will be making good use of it🎉
I feel so bad for anyone buying homes or cars right now. It’s a difficult market to start out in.
It’s enslavement and a money trap.
Make a lot of money but keep a modest lifestyle, modest taste and modest friends. I make six figures but drive a cheap, cheap, car.
I am an Engineer on a salary in mid 30k-40k, living in midlands. I never lived in London but learnt pretty quickly that 30k in the rest of the country is equivalent to 100k in London. I have a house, decent car (above the banger category 😂) and gained 10k savings within a year in the role. Pretty content with that, I'm neither stingy nor extravagant. You can do well with £30k income if you avoid 5 of the 7 deadly sins.
I think your one of the most honest reply’s I’ve seen , I’m only on 24000 a year,my wife earns more in accounting, both me and my wife work and have bought our house from 19 years old, life has had its ups and downs but we have been comfortable in life , yes we could have lots of debt and posh new cars like everyone else but we don’t and we’re very comfortable and never worry about bills. We eat out twice a month but easily enjoy simple meals during the week too. Best of luck 😊 in your future endeavors. Shrewsbury
What are the 7b deadly sins?
@@richardeyiangho3269 Pride, Lust, Gluttony, Greed, Sloth, Anger (Wrath), Envy
Yes, London has become unaffordable for most.
@@richardeyiangho3269 Gluttony, Greed, Lust, Envy, Pride, Sloth and Wrath.
I’d say avoiding 6/7 is necessary.
Thank you for the awesome advice. It will help many. For me, luckily I am naturally frugal. I take such pleasure from the simple things: sleep, good coffee and meals at home and hiking, gardening and exercise!
This lady is smart in finance, will take her advice
More than half of the 100k go into taxes
Your take home will still be over 67K if you’re on a 100K salary. you only pay the 40% tax rate on the 49k you earn over the £50,270 threshold for 20% income tax
You should throw a very high amount into your pre-tax pension contributions to offset the tax. At least then you get the money instead of the taxman
These are such good videos. So many people think that there is some secret to being well off. No, it is years of consistency, grind and sacrifice.
That lifestyle creep is insidious. We're all really bombarded with highly tuned messages to "spend more" and it's hard to fight. You really need to surround yourself with people and media that reinforce your own preferred message.
I work in property management mostly affordable housing. 24/365 ubereats, doordash and Walmart deliveries. You can't be doing that bad if you have delivery fee and tip on top of food that is marked up 200% 300%.
I'm one of these people but I still go with the rule to never overpay for something. Example, the car market has gone mental the past few years so the car I bought for £38k 4 years ago costs £45k now. So even though I want to buy a car the past couple of years, I'm not.
I'd rather wait for opportunities to buy. I do the same for shopping in general. I also put my savings into investments rather than the 4% savings trap.
One more thing about pensions, from a personal experience, they are not set in stone. When I left Greece my parents pension got slashed in half because of the financial situation in Greece. Pension funds do not guarantee you'll get your pension.
Another reason for high earners being broke is because of high consumption (Ref: Millionaire Next Door). People living in a consumption lifestyle will realize it comes at a personal financial cost.
Nischa's content is first rate... definitely worth listening to. Beyond that she is drop dead gorgeous which doubtless brings viewers. Beautiful, intelligent producers will always succeed. I'm happy for her and always appreciate what she has to say.
So good video. Thank you. Everyone knows that if you earn more, your lifestyle must be increased just a little bit, but it is so difficult to do. A good strategy could be having some things that make you feel rich but without a monthly payment, for instance renting a ferrari just for a few days, or going to the best restaurant once a year, etc.
On that same note sometimes leaving the once unattainable such as the Ferrari as a treat (renting it from time to time) keeps the inferred value of it.
I mean think about all the simple things you wanted as a kid that now you can buy like it’s nothing. Not speaking for every scenario but in some cases, it’s become so accessible, it’s lost its “value”
Nothing gold can stay - Robert Frost
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Claudia Jenkins.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
What impresses me most about Claudia Jenkins is how well she explains basic concept of winning before actually letting you use her trade signals. This goes a long way to ensure winning trades.
You trade with Claudia Jenkins too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Your comment about driving old banger in nice neighbourhood reminded me of the time we moved. All our neighbours had nice fancy cars & we had a beat up renault.
I know a lot of people with no degrees and they earn more than other people I know with degrees. I think experience is more important than degrees
Yes definitely, are you in Australia? This is especially true in Aus
Hi Nischa, great video as always. I was wondering if you could talk about the specific financial considerations people might have who are childfree. Often financial advisors are encouraging you to maximise your wealth so you can pass that on to your children but that is not the dream of some (it seems increasing number of) people. We would rather optimise our finances in a way that suits this lifestyles, however the traditional financial products are not always suitable. I would be interested in hearing your thoughts.
Dear Nischa, Thank you very much for this interesting video. Let me allow one further question: What does reach mean? To be free? To do what you really love? To eat good organic food? To be healthy?
On the other hand: Why would somebody become wealthy? Save money for the future w/o purpose is pretty dump (sorry for my language). Everybody should trade off between now and future. For instance: Why should you wait for being retired to start your most lovely stuff? Live today and save money if you can afford it. The one million dollar will not buy your youth phase. I am struggling a little bit with the purpose to become a millionaire. Just have fun in your life and do what you love. The money will come, trust me .
I agree. You have to live for today and also save for tomorrow.
It’s a balance
Poor savings, Investing, and investment management
It's always good to have a financial plan,
Very true, that's why I hire professional guidance in my investments, to mitigate unforseen circumstances amd mistakes.
Yeah, in my case Carl Jason Cohen has assisted me effectively in that for years.
it's amazing how people view "necessities". unfortunately, some people think you're mad or asking them to give up fine dining or luxury goods. laziness also comes into play, i know a couple who eats out all the time saying they refuse to cook at home. not even a negotiable. it's the society we live in.
Yeah eating out is ridiculously expensive, it’s one of the easiest things to save money on. There’s nothing wrong in principle with blowing money on loads of takeouts but you can’t then moan about being a victim of circumstance when you can’t save.
That's insane. I just get tired of going to restaurants after a few days of vacation... 😮
I've worked really hard and been really fortunate. Just five years ago (at 30) I was working (hard in) an entry level job and I've gotten two promotions since - I did one upgrade; from surviving to being able to do a few little things, and now I'm saving 15% of my income every month. I've gotten rid of all my debts except a mortgage and have become a tight budgeter. In theory I have it really good (I'm at six figures Australian - which is nowhere near six figures in GBP, EUR or USD) BUT because I don't have a safety net (family to fall back on, financially or residentially) that 15% saving still feels very stressful. I need those savings because if my cat gets sick, if my car breaks down, I MUST use those savings. So I still feel broke, strangely.
I'm slowly getting better at this type of stuff as I've recently increased my pension contributions to 31% including the 10% put in by my employer and have started to max out my ISA allowance each year (£20k). I'm also making large overpayments on my mortgage in an effort to pay it off sooner rather than later.
In regards to the later, it became apparent that the £170k I have left on my mortgage to run 16 years was going to cost me £240k (£70k interest) thanks the the jump in interest rates of late, however, if I paid off £90k (equity from a BTL property I've just sold) and took the remaining £80k over 6 years then it would only cost me £91k (£11k in interest).
Wow
Also the fact of normalization... buy an expensive new car.. after a while you feel the same as when you were when driving the banger.. result you need to upgrade again
I worked out a year ago sometimes “The juice aint worth the squeeze”
love that expression
Good advice. I’ve lived within my means all my life and last year was able to retire early. When I told my boss I was retiring, he admitted he would like to do the same, but he had a mortgage for a big house and both him and his wife had loans for new cars. Too many people must have the latest and greatest “stuff” and think it will make them happy…it doesn’t!
You forgot to mention about “magical” bracket of 100k-125k, when earning more money within this range doesn’t actually make you earn more money as you are effectively paying taxes at whopping “60% rate”
Yes - good time to add more to pension or get company car
@@kandacewalker848 exactly this^
I wasn't interested in the subject matter but I kept watching anyway. I could watch this woman talk about anything for hours and hours.
Great video! It is pretty accurate. I live in LA, no debt with a professional job and no roommate. lol, And let me tell you people around me look wealthy and well-off but are drowning in debt and living paycheck to paycheck.
I love that your spreading the message... I'm mortgage free and debt free life is amazing with freedom. Great lessons learnt from hardships
It's as simple as this: "Don't try to live beyond your possibilities' and spend money wisely!
Extra-curricular activities for kids isn’t a pointless life upgrade like a car or some more snazzy interior decor IMO: it’s an investment in their future, their opportunities, their health and their wellbeing. Obviously there’s a difference between music lessons/football coaching etc and buying them a horse!
Moving out of london to anywhere in the stock brocker belt which is generally the areas outside the m25 comes with higher transport costs and houses prices are still relatively expensive
Its called lifestyle inflation. Avoid it at all costs😊
Great video. So many people just spend too much, spending like millionaires 🌸
from just buying a new sofa to an entire new house 🤣🤣
Amazing that this needs to be explained… You were a high earner and lived paycheck to paycheck and seriously were surprised???
Turns out I was spending it! Who knew?
My advice is not to buy something that you can still use like car/phone/shoes/etc and don’t eat and drinks too much in restaurant. This is the main reason of big expenses
I would suggest to cut CC or tried to not use a lot of CC to buy luxury items.
Use you cc to pay bills, utilities, etc and set up a direct debit so don’t missed out the payment and you can earns points and it’s good for your cashflow.
Avoid Car loans and save money to pay the deposit for a property
Brilliant - cannot agree with you more. It takes lots of discipline and strong mind to control the spending, when one is earning 6 or 7 digit income. That is why I see many blue collar job earner having more wealth in their retirement than many doctors or high earners. Because they live simple and happy life without getting in the race to show off.
Back then it did before 2010, but not now. Everything is so expensive.
Need to live below your means, buy assets, and build a scalable income stream. Takes time but it pays off
The picture in the thumbnail is so sad 😢 lol. 2 things, my saving hack is I got rid of my Audi S3 in 2021 and it’s saved me around £10k a year, plus I don’t pay into a pension because I’m not expecting to live long enough to have it.
😂😂
Dude...save something for pension. Who knows..
Veeeeery curious what your job is!
Why are u not going to live that long?
lol I always think I will die before pension age aswell. But I pay into my pension monthly.
Lol nah I don’t see the point in saving it. I worked out (I’m 36) I’ll probably pay about £6k a year, for the next 36 years (£200k+) that I would only get to spend when I’m old and crusty, F that, no offence. Plus I smoke.
I think everyone’s assumption is we will live forever but it’s just not true for a majority of us. My mum died 6 years ago at 52, didn’t smoke, didn’t drink. So what chance do I have of old age? Might as well enjoy my fruits whilst I’m young enough to eat them.
Amount of money means nothing.
I live in Zagreb, Croatia. Our household take home income is around 8k euro per month (wife a doctor, me as an engineer).
We live in a 3br apartment in an affluent part of the city with alot of dispoable income. I think our accomodation expence amounts to 10% of our take home income.
Whenever offered a job in e.g. London, first thing I ask is if paycheck will allow me to live in a 3br condo in affluent part of the city. If answer is no - there is no point in any further discussion.
Sorry to say, but you cannot benchmark UK and USA. UK has PAYE so the taxes are taken before you get the net pay. In the USA, it is legal for all employees to be employed as a business and therefore can claim expanses against their business such as travel costs, stationary, printing, sundries etc. In the UK where this existed, the government closed it via IR35. Therefore $100,000 is jot the same as £100,000 salaried. Also, in the USA, cost of items is alot less as a general thing, so it's more like £100, 000 is £150,000 including exchange rate variances.
Let’s not forget about the restaurants they go to and gain weight on. No sympathies there.
Thanks for another great vid. I’ve made rapid improvements in all areas of my finances since I found your videos and started following your advice. ❤
private school fees and university care, child care, mortgage, designer clothes, 2 expensive holidays per year in 5 star hotels, expensive dinners at Michelin restaurants, expensive lunches, champagne, alcohol, expensive car payments, buying expensive presents, buying expensive jewelry, having your money in the wrong type of account, investing in the wrong things, credit interest.
Defo can't have that shopping list on a £100k gross.
Here in the US it's car poor. People with 60k salaries should be buying 20k vehicles but are buying 50k cars. the 100k people should be buying 40k cars buying 80-100k cars. these 700-2400 car payments not including insurance or maintenance. But if you look everywhere people own 40-70k pickup trucks. After tax a person making 100k in NY state for example is brining in 6k a month. 1777 in average mortgage and 700-2400 car payment, of coarse they feel poor and paycheck to paycheck. I like cars but as a car person I was into the cheap muscle and rally cars, mustang, golf, charger, camero, civic. Cars where you can get decent used for 15-23k. Once i saved up and mortgage paid off, investments making money etc then i can spoil myself a bit. But many people as soon as they make money want to live the dream. One of my first jobs was working warehouse i had a beater volvo you only made about 2100 a month but everyone was driving BMW and audis and pick up trucks ie 600-900 car payments.
great video! ive heard of the diderot effect before but never remember the name!! thanks for the reminder! 🎉
she is stunningly beautiful and so smart and well-spoken
*The statistics on how many high earners are broke is so fascinating and is a perfect example of it doesn't matter how much you make if your financially illiterate financial education is so important* 😁
some people are so stuck wanting the high class life that they end up so miserable
Mo’ money mo’ problems.
Too many people play the keeping up with the Jones’ game.
Saying that you have enough money automatically makes you richer than any rich person, because they never get enough.
Unfortunately the debt based system doesn't reward savers. People who take on debt to buy assets have done way way better than savers.
I work in structured finance and was employed until 2019, at which point between salary and commission i would take home around 12.5k per month, which I felt hard done by.
Since 2020 ive run my own company and I turn over around 675k per annum on average.
I honestly think I lived more sensibly on a PAYE contract.
Mortgage, vehicles, and lavish lifestyle, make you broke
Pay yourself first, that was my moto during my working years.
I met a freind in Mayfair last week and felt poor, an hour later at home in my sprawling country manor in Buntingford I fet rich again.
The best thing to happen was during the pandemic when remote work became more available. Now you can live in a cheaper area and work for an employer in those high cost living areas. It's hard to find six figure salaries in areas when it only cost 20 or 30k to live there. Usually the income is more like 50 to 60k.
The key though is to spend like you are broke and save like you are rich. Balancing is key though. I always think of the scenario where someone saves their entire life to their retirement date, and then keels over the day after. Save first, and spend wisely is the best scenario.
The big problem is lifestyle inflation. That is, as one's income goes up you start spending more. The key is to keep your spending the same even if your income increases. Thats how to get wealthy.
Most young people do not think of retirement, they won't contribute to their retirement account. They thought retirement is so far away. I have talked to my relatives, they don't think in advance and prepare for the future.
Young people should start investing 10%-20% as soon as they’re earning. They’ll be in a much nicer position 20-30 years from their youth.
Its not how much you make, its how much you save thats important.
Also agree on point 2. New house, new furniture, new car then a NEW WIFE. The house then becomes a very expensive purchase 😂
Facts:
With so much credit available, many college students are skipping the poor college student phase and instead are living like they already have a high paying job.
Once they actually get a high paying job they increase their spending way more.
What does this do? It causes a huge amount of wasted money and financial clutter.
If you were taking 2 vacations per year as a student you'll probably try to take 5 or 6 as a well-paid employee.
If you were spending $1000/month on food and drinks as a student you'll probably spend $2000-3000/month as a high paid employee.
You can either live like you're poor to be rich, or you can live like you're rich to be poor.
some people when they earn more, spend more, that's the wrong move.
Yes, that was the main point of the video.
So true
lifestyle inflation
Terrible that money creates such a sense of regular anxiety.
I always found it strange that people from west count their salary BEFORE taxes are paid. Hewre in Serbia, when I say I earn 10.000 eur per month - that is 10.000 eur in my hand, after all taxes to goverment are paid.Why would I even calculate how much is given to goverment, when this is done automatically? So when we talk to employee, we don;t even mention money that is gogin to the sate - we talk about what we will have in hand, after all taxes paid. Because it is done automatically, I truly don;t know exactly how much goes to taxes. I know it is around 50% of whay I bring home, but who cares? I don;t tell to everyone that I earn 15,000 weur per month - I tell 10.000 eur.
Most countries in Europe are like that. All the eastern countries plus Italy, Austria, Germany, Spain, France... Salary is commonly discussed as Net monthly pay. For some reason in the UK, US and some other countries they like to say the annual amount before tax and social security (where exists). It's either a cultural/traditional thing or just a show off as it sounds better/more. 😅
Also, your employer can give you a 10% pay rise, so your annual pay grows from £50k to £55k; however your monthly Net pay will probably grow by less than 7%. So it's also a money saving tactic for employers 🤷♂️
I'm in the US so I can speak for myself. Taxes aren't necessarily deducted from our pay by default. It's easier that way, but I could tell my employer to withhold 0% for taxes. The following year I would be required to calculate what I owe for taxes and pay it then. So that gross salary IS what I get paid, I would just have a big tax bill every year.
@@djsone3499Do you have progressive income tax in the US or a flat one?
If the tax rate is flat, then it’s alright to measure the net income.
Most western countries use a progressive tax system, where the tax % increases with your income. In such a system, it’s much more clear to measure the income before taxes. If you increase your income or have multiple income sources, the tax % will increase.
@@inberyou mean if you earn x, than your tax is (for example) 50%, but if you earn 2x than it is 55%? In my country all income has same tax, with minimum income that is tax free, and for firms, there is a tax on gains (10%) and tax on extra gains (I don;t know how much it is, I am not that rich, so I never bothered to ask:). But in Serbia, everyone pays sam e% of their salarry in taxes - but we NEVER mention it, we just say "I earned" what you actually have in hand or account, after tax. I guess it is just culture - but also, when I listen how much is average yearly income in USA, for example, I get suprised about the amount, and also that people are complaining about it - but it makes much more sense if 50% of that goes on tax and other "must be paid" costs