How To Spend The Money From Your First Job

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  • Опубліковано 29 чер 2024
  • "The first thing you need to do is pay yourself first," says co-founder of AE Wealth Management and best-selling author David Bach. For Bach, this means you should set aside a portion of the money you make from your first job in a retirement account.
    Bach suggests putting money into a 401(k) plan if it's available. A 401(k) is is an employer-sponsored retirement savings account that offers tax advantages. Since money is taken from your paycheck before it reaches your checking account a 401(k) helps automate the savings process. Many companies offer a 401(k) match, which is essentially free money.
    How much of your first paycheck should you save? Bach suggests thinking about how much to save in terms of hours of your life. He suggests keeping "one hour a day of your income." If you earn $50k per year that works out to about $25 per day. If you think about savings in terms of percentages this comes out to roughly 10% of your gross income.
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    How To Spend The Money From Your First Job
  • Розваги

КОМЕНТАРІ • 34

  • @DanielIles
    @DanielIles 5 років тому +121

    Don’t buy material things. Invest in yourself and double the money. This is what I did and am so glad I did. My friends are barely scraping by and just a few years later I’m already dropping down my work hours and taking consistent vacations. More to come!

    • @xtian96gt
      @xtian96gt 4 роки тому +7

      Must not get paid enough..I was able to travel immediately, buy fashion clothes, and still save a lot with no problem

    • @a1gdotbrixx716
      @a1gdotbrixx716 3 роки тому +3

      What did you invest in ?

    • @dog8110
      @dog8110 3 роки тому +1

      How do I do these things or where can I start

    • @user-yx2wn4hx1f
      @user-yx2wn4hx1f 3 роки тому

      invest in real estate or stocks

    • @nychoppedcheese7202
      @nychoppedcheese7202 2 роки тому +2

      how ima invest when I’m a minor

  • @ChrisInvests
    @ChrisInvests 5 років тому +62

    You should invest the savings in yourself. Self education is very inexpensive and priceless. 🤷‍♂️👍

    • @marcelrodriguez2067
      @marcelrodriguez2067 5 років тому +1

      What kinda education? I dont even know what i like.

    • @ChrisInvests
      @ChrisInvests 5 років тому +3

      Business, finance, investing...

    • @DanielIles
      @DanielIles 5 років тому +2

      Second to this. Books, courses, classes, ect!

    • @wutwut1728
      @wutwut1728 5 років тому +1

      @@marcelrodriguez2067 self education. With means khanacademy.com coursera.com udemy.com skillshare.com youtube and more

  • @grant3849
    @grant3849 5 років тому +24

    Put it in a Roth IRA, or high interest savings, trust me you be glad you did

  • @JF238xLearning
    @JF238xLearning Рік тому +1

    Financial freedom is the key to many opportunities!

  • @victoriosaito9075
    @victoriosaito9075 5 років тому +3

    Hola, por supuesto que miró al dinero es un bien necesario para la humanidad hay que repartir un poco para los que los necesitan

  • @campy3
    @campy3 5 років тому +10

    The only way a ROTH IRA or a 401k plan is worth it is if you plan to take it out when you're 60+, otherwise it all gets taxed/penalized and isn't really worth it. If you wanna retire early invest in passive incomes that can create revenue for the rest of your life. I personally don't see the appeal in waiting till you're old and gross to enjoy retirement, start early.

    • @63falcondude
      @63falcondude 5 років тому

      campy :3 fortunately that’s not true. You can withdraw contributions from a Roth IRA at any time and can get early access to 401k funds using IRS rule 72(t).

    • @campy3
      @campy3 5 років тому +1

      @@63falcondude That's assuming you meet neat exceptions; for both of these instances. Never said you couldn't withdrawal before you're 60, I said it's not worth it. Long lasting restrictions on your money, in my opinion, aren't worth it because there are many other avenues you can take in investing that would have better return and much little restriction on what you can do with your money.

    • @anonymousnoname2239
      @anonymousnoname2239 8 місяців тому

      ​@@campy3what are those other avenues? (if you dont mind id loveto know)

  • @Liz-gy6bj
    @Liz-gy6bj 3 роки тому +2

    What is a 401 k ???

  • @anatoliydyachenko428
    @anatoliydyachenko428 5 років тому +2

    Хуже переделать, чем недоделать.
    Хуже поспешить, чем опоздать.
    Упреки совести всегда больнее за то, что сделал, чем за то, чего не сделал.

  • @nychoppedcheese7202
    @nychoppedcheese7202 2 роки тому +1

    What’s a Roth IRA and 401k sum1 let me know !!

    • @Brazen765
      @Brazen765 2 роки тому +1

      A 401K is a retirement account where you do not pay taxes when putting money into the account. A Roth IRA is an account where you pay taxes when you put money into the account. They both invest the money and hopefully will compound and earn you a moderate return.

  • @anatoliydyachenko428
    @anatoliydyachenko428 5 років тому +1

    Есть одно самое важное дело для всех людей.
    Дело это в том, чтобы жить хорошо.
    Жить же хорошо - значит не столько делать то хорошее, что мы можем делать, сколько не делать того дурного, которое можем не делать.
    Главное НЕ ДЕЛАТЬ ДУРНОГО.

  • @ahmadsarwar6814
    @ahmadsarwar6814 5 років тому +7

    I wouldn’t recommend 401k. Instead invest in an S&P 500 ETF for around 8% return annually.

    • @ScrollTD
      @ScrollTD 5 років тому +3

      Why not both? Be safe and reap the reward

    • @ahmadsarwar6814
      @ahmadsarwar6814 5 років тому

      You right!

    • @kevinjohnanand
      @kevinjohnanand 2 роки тому

      401k can be good because your employer will often match some of what you put in. That's literally just free money.

  • @charletfoster8917
    @charletfoster8917 5 років тому

    👍🏿👍🏿👍🏿👍🏿

  • @stevenclara6868
    @stevenclara6868 5 років тому +3

    Second

  • @Lavo.
    @Lavo. 5 років тому +4

    First

  • @dsanti4069
    @dsanti4069 5 років тому +7

    401k is a scam . Ask any baby boomer who lost millions , when it came time to retirement .

  • @d3thtr4p10
    @d3thtr4p10 Рік тому

    America‘s a shitshow. I don’t know a single person who I went to Uni with that had any form of loan/mortgage to pay back. (I am from Germany)

  • @victoriosaito9075
    @victoriosaito9075 5 років тому +2

    Hola, por supuesto que miró al dinero es un bien necesario para la humanidad hay que repartir un poco para los que los necesitan