Why High Paid Americans Are Actually BROKE!
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- Опубліковано 28 сер 2024
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Even though my wife's grandfather didn't earn much, he retired with over a million dollars. He saved $75 from every paycheck for 45 years and was cautious with his money. If he had invested in mutual funds, he could have been worth several million. It's not about how much you make, but how you manage your income.
Varied sources of income is wise and especially living within your means. My net worth is $2M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
Money advice is subjective, what works for you may not work for someone else, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted a CFP to handle growing my finance. As of today, I'm only 25% short of my $2m goal.
@@IAMBETTERTHANYYOU Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your CFP?
I don't comfortably throw recommendations around on the internet, but I've been working with 'Theresa Dana Peek'. God, she's brilliant! I'm sure there are others who are good.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
I’m a high school drop out
I’ve never done drugs
I have zero debt
I have $30k in the bank
My home is paid
I ride bicycles long distance
I have a beard and a backpack.
I get mistaken for homeless
A LOT
u work
@@rondelllewis6163 I deliver auto parts full time
Same here Mr. Bike, dropped out in my senior year! all it takes is just what you are doing, you will be a winner in this game.
@@traskstoneworks like my boss use to tell me
“Hard work, Lo pay and miserable conditions.”
@@traskstoneworks u got me beat by a country mile.
I live in the very center of Texas. But I got no debt and $30k in the bank. I got $3800. Net income per month with $800. Living expenses. So I can bank $2000 a month for the rest of my life
Anyone who earns a six figure salary and cannot come up with $400 has a bigger issue than finance problems.
True. I have about as much respect for them as I do for the 2 guys from Dumb and Dumber who end up blowing all that money they found in the suitcase. If you're smart enough to make six figures but too dumb to save money then you're still dumb in my opinion.
They may live in Bermuda...
Amen!
yeah, it's called having a family with more than 2 kids and living in CA :-)
Try living in Boston, New York, California or anywhere else in the country that isnt some podunk fuck hole. 100k isn't enough anymore.
I drive a 1997 Lexus ES300 and it gets me from point A to point B. I am a doctor making $210K and nobody knows that. I prefer to keep it that way.
You are the millionaire next door
Buy electric Toyota BZ next year
I know it now do not true
A 2021 Lexus would get you from point A to point B safer and in greater comfort. What good is having money if you don't enjoy it? Most heirs squander the family fortune by the 3rd generation. Also, if you're so humble why are you bragging about being a doctor (named Jady Phan) who makes $210K???
I have a 2015 Lincoln and I love it, and I want to keep it for as long as possible. It’s the nicest car I’ve ever owned. And I’m forming a plan to pay it off in less than 2 yrs.
I've been completely out of debt for several years now and I can't express how easy life becomes when you have no bills ... been saving up lots of cash now. Its wonderful
We are on our way.
We have 30k left to pay off over the next 10 months.
My Wife graduates with her Registered Nursing degree this year too. Which we have been cash flowing.
Next year not only do our bills go away but our income almost doubles too.
Going to be awesome.
Save up for a tropical vacation somewhere to celebrate.
@@getinthespace7715 fantastic 👏👌🙌👍
Congratulations! I just paid my house in November and now I’m paying off my rental property next month. I cannot tell you how liberating and freeing it is especially that I don’t care about material things. I know what I’m worth. 🙌🏼🙌🏼🙌🏼
@@getinthespace7715 That is awesome and well deserved. ❤❤❤🏝️
@@mmp495 fantastic 👏👌🙌👍
So I was the “can’t come up with $400, have credit card balance of $2,500+, living paycheck to paycheck” person. Started listening to Dave Ramsey a little over a year ago and already have a positive net worth for the first time since starting my adult working life.
Excellent!!
Congrats. DR gives you a great foundation, and the money guys fine tune your investing.
Congratulations
Congrats and keep up the good work. Minority Mindset also has great finacial education content too.
Good for you!
The 3 things that trip Americans up: Cars, Clothes, and Eating Out. Conquer these and you'll have more money.
Amen!!!
Let me add one more. Subscription. Americans seem to be into add kind of subscriptions such as Netflix, blue apron, etc etc.
And and vacations
@@Jane5720 I spend very little on road trips stay at friends and relatives buy my own food and picnic camp in my car usually come home with money I my pocket
In general anything fomo related.
I became a millionaire at 40. A decamillionaire at 50. How? I never deviated from living like I did when I had only $1,000 to my name when I was 22. “Lifestyle creep” will get you every time if you let it.
I might have been there had I not gotten pushed down so much.
I'm sure you also invested in stocks and real estate. No way you can save that much money
@@James-mw7zv Absolutely! I spent a lot of time learning about investing and how to make my money work for me. But I wouldn’t have had the money to invest in the first place if I was always focused on buying a bigger, more prestigious house, luxury car(s), the latest tech gadgets, etc.
It really is this simple... I live like this.. I have a hard time spending money on things i want but dont need, at some point has to change for me so I can enjoy some experiences and not just stack paper my whole life...
I still have a slush fund at bank for the rainy day I put some cash in it each mo . I drive to another part of the city to do that thats how I saved for my first house was used to not having that $,$$$ in my pocket each mo stay away from luxury cars and high end apts
It's endemic, it really is. I make about 60k a year-and I live in a small 1000 square ft apartment that costs about $1100 a month. I've had several guests who visit and critique my "crappy apartment". Almost 95% of these people, when I speak to them, turn out to have absurd debt and/or money problems. Funny thing is I would've gotten an even smaller place if I didn't have my dog. XD So many people paying for stupid things.
1k sq ft?! holy dogshit, i live well (?) in less than 300.
btw yer right: most people I know have bigshot accoutrements and house but they're BROKE and indebted over their keesters. I make do happily with what i have and am without debt and happier than many.
as for those who critique your home with their rather sublime judgement ("crappy" ?!) they can always go somewhere else. 😁
Dude, I rather live in a nice studio apartment than a big ass house.
My mortgage payment is lower than your rent and I pay over $100 extra in my payment to get rid of it aka own it.
I envy you. I already own a small house in the Midwest, but my job has me move around every few years. Currently on the west Coast, and this price seems to be as good as it gets here. At least if you don't want roommates, which I don't.@@danicegewiss862
@@219Thompson I'm in southeastern PA. Rents are high here, too. We started saving to buy a home before we got married by getting married at the JP. Rents go up constantly. $1,100 is great rent on the west coast! A friend of mine is an LA realtor.
If the class system was based on "net worth" instead of income, fewer people would be considered middle class.
Exactly. I know people making over six figures living from paycheck to paycheck. Meanwhile we are living off $60k with one child and another on the way I'm a stay at home wife with $20k of savings in the bank.
Boom!
Wow Linda!!! You are so right.
Right on Linda, my wife and I in retirement take in about 25k a year gross, but our cash and property assets are worth over two million. We are the upside down people to you logic but in fact we do exist. And you are so right, they are the big hat no cattle people. I've seen people living in two million dollar homes, mortgaged to the hilt, driving 80k Mercedes!
I agree
i drive a 21-year-old Buick Park Avenue and could buy just about any car i want. I live in a modest house i have debt-free properties that afford me to be retired and not work but i choose to. i am in my late 40s and am an immigrant from Eastern Europe. i have and see friends that drive $50k, $60k trucks and vehicles with 500, 600 or more car payments and are absolutely consumed to keeping up with the Joneses. No one knows except my family and brothers what i'm worth. i like it like that.
THEY HAVE TO READ ABOUT THE MONEY COM,MODITY MONEY CYCLE IN CAPITALISM/ IAM FOMA INDA AND LIVE VERY MUCH WITHIN MY MEANS
We from eastern europe are amazing
Keeping up with the Jones’s is a losing battle. There will always be someone with more money than you
Most people like to make others rich. Live simple and be happy.
The 21 year old buick is a much better car. All modern vehicle made in the last 10 years are backaches on wheels
Instead of trying to predict whether or not we’re going into more recession and keep losing your money, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every quarter according to Bloomberg.
Realized how entry, capital, exit, goal and more differ on each assets passively earning with Laurel Dell Sroufe. Currently hold , I have a $122k portfolio averaging a 13% monthly roi in less than a year following. So I do know.
@Parrish Laurel appears to possess a strong grasp of her field. Upon perusing her online page, I reviewed her credentials, educational history, and qualifications, which were all quite impressive. As a fiduciary who prioritizes my best interests, I proceeded to schedule a meeting with her.
Advertising has us chasing cars and clothes, working jobs we hate so we can buy (stuff) we don't need.
-Tyler Durden
Our 401ks and the american economywould get destroyed if OTHER people didn't do that lmfao.
To impress people that we don't like
Eh, that only applies to stupid people
@@username6333 Not necessarily, businesses would become the prime consumers rather than people. It'd be a much different market, sure, but after a painful transition period I imagine it would work fine...
You don’t have to play that game.
I’ve work in the mortgage business for 20 years, NO ONE invest the difference in the payments! They spend it.
The only two reasons I refi'd was to get the lower rate and invest the difference in our Roth IRA, so some of us do invest the difference.
@@natebonebusta agreed at least the ones that watch The Money Guy show 😆
Agreed. On the Paul and Melissa example, I suspect Melissa would be less likely to invest it.
So true
That's true, but they also don't watch The Money Guy. For the type of person that has financial discipline, we do invest the difference
A lot of people do not really know that their net worth is in the negative.
My net worth was in the red all my life
I know mine is at the moment.
I think doing a net worth calculation and a monthly budget are the first steps to becoming a responsible adult. Many people never grow up, ever.
My neighbors complain about my old car - somehow it triggers an insecurity in them....I was a nurse for 35 years and health is wealth. I continue to live below my means and follow my own rules. Don't borrow and don't lend...just give when you can.
@Maria Cullati; "Neither borrower, nor a lender be". "Hamlet" Act 1, Scene 3. Wm. Shakespeare :)))
You sound like a very grounded and just, generally, good person. Wish the bulk of humanity had, well, more humanity.
Tell your neighbors to go to hell
@@monkusbee 👏🏿👏🏿👏🏿💯
I got so many friends who dnt talk to me no more because i refused to lend them money,i had a bad experience with lending money to ppl.
Paid off my mortgage early - in my 30s - and don’t regret it for a second. There is something very freeing about owning a $500k asset free and clear. If my income went away tomorrow I could work at Starbucks and afford this. I sleep better knowing I have options. I started investing at the same time, just a tiny bit at first and eventually moving into maxing out land. As a result I have a six-figure portfolio as well. Yes it could be more if I didn’t pre-pay the mortgage but this is the balance that helps me sleep best at night
Imagine you lost you job in an economic downturn. Having to sell your assets to keep your head above water will hurt deeply. People always play the numbers game when talking about pre paying mortgage vs investing as if investing is a sure thing.
@@SS-sy4uu I have always kept a much larger than normally recommended emergency fund (12-24 months) plus I have six figures invested. I would be ok. But your general point is a good one - you don’t want a huge percentage of your net worth tied up into any one thing
neither of you are in the video
I'm a minimalist and 20 years old so I invest in myself and try to save money. So when I do lose my job I can be prepared for that. Americans need better money habits. Great Vid Guys!!!
Last year, we become millionaires. Me 38 and hubby 41 ... still live the same lifestyle.
You need 2.5 million
@@123koby we will. Compound interest and consistent monthly investment outside our regular Roth 401k will help us get there sooner than you know it. Not to mention we still do a full contribution to our back door Roth yearly. Good luck to ya too.. hopefully you get there soon too.
Congrats!!!so manny work really hard for such position.cherrish it and keep it growing.
@@happylife7542 when I'm there I will move to low cost country
Congratulations. Keep going and take the needy and the community along! 👍
My coworker just discovered at 60 that $70,000 in her retirement account isn’t enough to retire with at 65.
This is what I'm scared of. Not having enough money to retire.
Sucks for her. I’m 32 and going to pay the house off in 9 yrs no way in hell im working full time till I’m 65 no way. After the 9 yrs I’m going to partime. I’m also 32 and contribute to my 401k with a company match
Thats pretty sad :(
Just discovered?!?!?!!! With all the content online, UA-cam and social media. There's no excuse for ignorance anymore!!! This isn't 1970 for God's sake.
That means she’s been acting stupidly for decades. You can’t fix stupid.
31 years old and hit a net worth of $200,000 this year. How? Stay the course and be consistent. Don't compare yourself with what others are doing. Having "things" means nothing. Invest in yourself. Happiness and wealth will follow.
I’m 23 with a $375,000 Net Worth
@@5000MikeMaster how you get there? Any advice? Thank you
I'm 27, 100k net worth
36, $550,000 net worth. But I’m Californian do it wasn’t hard 😁
I’m fifteen and my net worth is $20,000,000
To quote George Carlin: People buy things they dont need with money they dont have so they max out their CC and pay 18% for something that costs $12.99...
If 2020 has taught us anything, it’s that 3-6 months emergency fund just isn’t big enough and it’s NEVER a bad thing to be debt free. We worked to be debt free at the same time we were investing....it’s doing BOTH that creates the financial security.
Having a emergency fund especially long then 3-6 months is just dumb. You can invest in liquid assets where you make money on it and if a energy does happen you can pull it out.
@@robb5270 I never said WHERE my money is invested or how liquid it is. I merely stated that 3-6 months is not long enough for me. No need to belittle or demean.....you do what works for you and I’ll do the same. Best wishes to you.
If you can’t find a new job for 6 months straight something is wrong with the person...
@@Tybward Ehhh depends. Yes, you can find a minimum wage (or slightly above) job within that time frame. However, if you are a professional in a certain field looking to make $75,000+ it can take that long. Now with more and more positions moving to remote employers aren’t limited to talent in their immediate area or those willing to relocate.
@@Tybward also, if you have children, there's a serious opportunity cost to working. It's not enough to just find some random job. It has to be a job worth paying for childcare for instance
It ain’t how much you make, gang, it’s how much you keep!
For sure!
Stack those sats
True, but Making 15k a year (full time, minimum wage), doesn’t work. We have an issue with poverty wages in this country
@@madis1817 I mean... I guess? But as long as we’re talking about the tail of the bell curve for adult earners you aren’t getting ahead on $30,000/ year either. So while I’ll allow that the minimum wage needs a refresh I’d say the much more productive conversation is a society that produces a volume of people (often through no fault of their own) with only replacement level skills, education, opportunity or network.
Be a minimalist.
I'm a single guy, making $32500/yr. I'm saving at least $1000/mo while also contributing about $300/mo to my retirement (working on building my emergency fund, then it'll all go into my retirement). It blows my mind that someone making $100k+ could be broke.
Enjoy it while you can because it's a different ball game when you are married and have kids.
@@BleedCubbieBlue Not really, it's the same game. I don't plan on making the same amount of money until I die, my wife will work, or at least until we can live off of one income. I don't plan on having kids until I am financially stable enough to do so, but I know that doesn't always work out. The excuse that "once you have a family you cant save money" is kinda dumb. yeah, if you don't change lifestyle habits or get higher paying job then of course, but it's not because you have a wife and kids, it's because you aren't earning enough and trying to be creative with money saving.
@@ryanking4942 I’m with you but you have to get your partner on the same page on saving money and investing. I make over 6 figures and my wife doesn’t work and still save 40% of our income but our friends love to spend money and have the latest and greatest toys. My wife doesn’t really care about expensive clothes and purses but her friends on the other hand love to splurge and I don’t ever think they would change.
Where do you live?
@@athens31415 Ames, IA
Highest incomes are usually found in the highest cost geographies. Someone making 100k+ and working the hours to do it in SF is poorer than someone making 60k at a regular 9-5 in Nashville or any other small-mid sized city
Yes in a way you are correct! But part of the cost is the home investment! this is an appreciating asset! I have never owned a home, but have owned over 30 properties with houses on them. It's a mindset, I look at everything I buy as a depreciating asset or an appreciating asset. My vehicles, tools, are depreciating assets but they are necessary to service my appreciating assets. Recently I installed 150 ft of 42" stainless steel railing on this asset I'm living in! I could have bought this in the U.S. at a cost of over 25K but instead I imported it from China myself, total cost $4600. Bought it from the same supplier that the company that wanted to charge me 25K buys if from. Most people don't have the time to waste saving money!
My grandparents own a dozen apartment buildings in San Francisco. Each building is worth millions. They also own stocks and bonds. Today houses are so expensive that to be able to duplicate this would be almost impossible unless your income was over $600,000.
Makes sense.
@@mocheen4837 I love your grandparents! My father came from nothing, growing up in an orphanage in Montana during the depression and ended up a Multi Millionaire. He was in the Marines and shot on Tarawa and later on Iwo Jima. My hat is off to men like him and your grandparents that came from nothing and with drive ambition and self denial made it. We have done well also and to hear it from people we were lucky, lucky to have my brothers lies cheat us out of a house we built, lucky to have my wife have major cancer surgery three times, lucky to live through 35% unemployment on the Oregon coast, lucky to have to pay 12% interest on property we were buying, yes we were so damn lucky!
True. 100k doesn't do much nowadays
Keeping up with other people and their circle of friends from a financial sense is always a dangerous game to play with your future
That was a key point I remember from The Millionaire Next Door - don't live in a neighborhood full of people richer than you.
100k in Ontario Canada takes home 65k , Rent is 1700 for a cheap 2 bed , car insurance is 200 a month . Sales tax on everything is 13% , taxed out the ass . Food very expensive , gas $1.50 per litre (spending 500$ a month on gas)
Not all places are equal.
100k is dogshit in Ontario
Over taxed and super high cost of living
The kind of people that are impressed with displays of wealth aren't the kind of people you'd want to be around.
I bought a 58k house put 5k down and just paid it off last month. It’s now a rental and cash flowing $450/month without a mortgage. Now I have less stress with tenant turnover and less overall worry. I’m 28. Bought the house in 2015.
I wish I had those type of opportunities heh. The cheapest condo's around here (Toronto, Canada) are easily $300k + CAD (around $245k USD). You can find land / properties that are $60k (USD - so about $90k CAD), but they are like 8hrs north or east where no one lives so you're not getting rental income and they won't have much appreciation value - they are just shacks in the woods and will probably remain that way for a long time haha.
There's a lot about the American system that sucks when it comes to some of the burdens (health bills being one) but boy the opportunity for smart & hard working people can't be denied. If you're smart to plan for those eventual demises, you can get really far ahead in life in the US, I'm hoping one day I get that chance. You just can't get that type of ahead here in Canada, there's not enough to go around and too much of what is around is already owned by the extremely wealthy, who continue to gauge you out. Happy for you, good luck on continuing to build your wealth, sounds like you're off to a great start :)
@@whoopass2rb thanks abunch! America also has the 1031 exchange which allows you to delay taxes on capital gains when you sell properties for new bigger properties as long as you use all the proceeds. It’s great! Best wishes! You got this
Just curious what market this house is in and its sq ft
@@doomtomb3 outskirts of Pittsburgh in pa and 800 square feet haha. It does have a huge garage included though.
Millionaire at 57, no one knows but us.
Hopefully we will be there too and I won't even let our kids know. They will just be suprised when we pass away.
I am only 31 but depending on the stock market, I should hit millionaire by 40. But unlike you I do gloat about how much money I have. I actually have a lot of nice things plus go on vacation to Europe once a year but I still put 60% of my income away for retirement maxing both my wifes roth 401k, my roth 401k and our roth IRA. Whats the point of having all this money if you can gloat about it lol.
@@SarahR2D2 If I have kids, they will be just as surprised but they will be even more surprised when I leave it all to my current living pets and once they pass it all goes to charity's.
@@tidus9942 like that comment ....why do we have to leave any thing to our kids ,enjoy life , sorry son but it cost us $$$,$$$ for that 1yr around the world trip and $$,$$$ at the nursing home for 2 yrs besides you have a job .
And now all of us 🤣. Nice job though!
I think the biggest trap in existence are the words, "I deserve [X]". It's not just money - pretty much every bad decision in life comes down to, "I deserve this; why should somebody else get to [X] and not me?". The worst part is that it's usually true to some extent; it's just that it never stops at just one thing, and ten years later you wonder how you got here.
George is getting upset!!!
Most people have a “big hat, but no cattle”. They look wealthy but are actually broke.
So it's 2014 and I drive into the local Fred Mayer grocery store over 600 cars in the parking lot, gee i say to the wife we are so poor, look everyone has more money than us, they must have they all own nicer cars than us! At that time we owned about 1.5 mil in paid off real-estate and had 750k in the bank! We're still poor our rigs a p.u. and car are 10 years old!
@@traskstoneworks ha! That’s awesome. You sound a lot like me. Only $500k Net Worth right now but staying the course living way below our means, buying used everything, no debt, and paying off home in 12 years.
@@JorgeRamirezFinance George let me tell you how we did it! We bought our first house from the owner, as no bank would loan on it! We paid it off in three years then rented it out and bought our second, same thing no bank would loan on it, as soon as we'd get them fixed up we'd rent them out. We learned all the repair and fix skills at the library and working with professionals. We sold off some and bought others in better places. Our son suffered most as he went to 8 schools before he was in high school. One of our last big purchases was a ranch, right at the time ranches were going bankrupt due to Jimmy Carters help the family farmer program. We sold off our houses and bought a 640 acre ranch (1985) and lived there while our son did all 4 years of high school. Sold that off in 93 and made 7 times our money then bought some rentals and fixers that we still have. We'd love to sell them and go into CD's but can't due to the low interest rates, the interest on a million dollars won't even pay the taxes on the house we live in! We spent two years in Mexico and could rent a mansion there for less than our property taxes here. Right now we're way to cash heavy and will be buying a winter house in Az. this fall as property prices are going up better than 8% and the bank only pays us 1/4 of one percent. So it's like enjoying your investment! You can do what we did, I didn't even graduate hi school.
@@traskstoneworks you are an inspiration! Thank you for sharing that with me!
@@petetittl8289 thanks sir!
You guys might literally be saving lives with your content. Empowering people to seek financial freedom keeps their optimism up, their joy up, and creates a cash cushion should anything dire happen to them health-wise. Thanks for all that you preach.
Don't be slave of money
U know wats worse the looking rich.. looking poor and being poor... 🤷🏻♂️
🤣🤣🤣
🤣
I think there is also a "relatively speaking" component here in that $100,000 for a single person might get you far in Akron, but $100,000 for a family of 5 in New York City will not. As well as the taxes of where you live, the costs of transportation/food, and a large number of other little things like those can add up to you making a "lot" but only having a little to show for it
100k for a fam of 5 in SF bay area means you are dirt broke and qualify for low income housing lol!
It depends on your decisions.
I would rather be Paul. The peace of mind of a paid off home is priceless.
I would rather rent and invest. Your own house is an anchor and a burden that keeps you from chasing good opportunities. If I were tied down with mortgage and a permanent address, I would be forced to turn down good job opportunities.
@@B1gLupu It does have a lot to do with how you make your living. Good point!
@@maryfields1382 Different personality types too. There really is no wrong way, as long as it's responsible!
@@B1gLupu it depends. I am a lawyer who runs an office out of my house. I KNOW I will be here and I KNOW that I will die in this house (we opted for a ranch and one that is small - 1,000 sq ft yet has 3 beds, 2 bath).
When you KNOW that you will stay somewhere for many, if not, all your remaining years, renting is a poor investment.
@@jasonwilkins1969 Ofc, what in life wouldn't be situation dependant :) There are obviously reasons to own a house, but as a single male with ambitions of traveling across Europe in hopes of the highest paying/coolest jobs, buying a house, for me, is a ridiculous idea.
Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time, I pray that anyone who reads this will be successful in life too 🙏🙏🙏
Amen, you've remind me of what someone once said "The mind is the man, the poor is in it and the rich is it too". This sentence is the secret of most successful investors. I once attended similar and ever since then been waxing strong financially, and i most tell you the truth..investment is the key that can secure your family future.
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an ex pert can lead to a great loss too
exactly! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
Nice comments, please what exactly kind of investment are you talking about here, I'm really interested too
subscriptions are one of the most dangerous product going around now because everyone has them and nobody knows how much their actually spending on them
I used to be exactly what they described... I had a 6 figure income and nothing to show for it. After I read and applied the principles of "The Richest Man in Babylon" my whole situation and circumstances changed. 6 Years of this wonderful journey and I could retire now any time I wish... I just love what I do and running my businesses are a joy! Good luck to everyone with the will to change their story's narrative.
This is a sad reality for many. We all see it daily - but many will never change their behavior because they enjoy instant gratification. Wealth is quiet, not flashy - and doesn’t need anyone’s affirmation - it affirms itself.
I never had a high paying job...... worked a 2nd part time job and that check went into stocks ( $400/mo.)..since 1980 now am worth $5.5 mil. still have my other full time job ( $50,000.00) and chuckle whenever a coworker gets his veh repo'd right out of company parking lot , happens once / mo.....but I still drive my 2011 rusted out compass.
Are you just in a S&P500 index?
I’m not a high income earner, but (at my level) My problem was not doing a formal budget. Never really tracked expenses until this last year. Finally have that fiscal discipline-1st step was budgeting.
Having $10,000 in the bank was so comfortable and relieve of the stress associated with unexpected cost was amazing.
I agree 100%.
I appreciate you for sharing such video with good content here and i will keep following you because you're the best.
When you read articles about financial freedom, you may hear people drone on and on about how they are spending practically nothing so they can retire at a younger age, like 30. Conversely, they may have already achieved financial freedom and are bragging about how frugal they were so they could retire well before the typical retirement age.
Planning for retirement, or even financial freedom, is a marathon and not a sprint, as the saying goes. Breaking up your financial independence goals into small chunks can help keep you on track while making the process a bit more manageable and, hopefully, a little less stressful. Even if you are starting small, the important thing is to get started.
Investment creates a safe haven for the future, Everyone needs it so you don't go bankrupt when you stop working.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor
I don't like making such recommendation but i will tell you how to reach out to him.
All the rich folks I've ever known (exceptions for those who inherited it) are thoughtful, careful and deliberate with money, they have NO DESIRE to show it off.
Right. People who flash their “money “ usually have very little or none at all.
The correct word is wealthy
And I found that they are also educators when asked how they got there.
@@midnull6009 Yes. Don't we all enjoy 'teaching' tho? (that sounds condescending but you get it) It feels good somehow if only making ourselves momentarily 'important' but it's a positive human trait that all of us should gain from--learn from others and spread what we have learned.
@@midnull6009 I certainly don't think of self as "wealthy" and a $1M isn't what it used to be but you'd never guess my NW is North of $1M. I live in a shack and wear mostly work cloths, only obvious luxury is ONE special (to me) sports car. My only expensive desire is to build a new quality small house in a few yrs.
Goal is to BE wealthy not LOOK rich. Good one. 1. Make a great income. 2. Build resources that pay you. 3. Keep more than you spend on fun. 4. Use a wealth coach/advisor.
How’d I do?
Understand money is an illusion and is make believe. It’s a vehicle. It’s important because it helps support your life.
But ultimately health is wealth.
Having financial goals is great but remember to
Men's Warehouse, two suits on sale for the price of one. Three dress shirts for $100 on sale. Keeps you dressed appropriate for the business environment. Pack a lunch 2 to 3 days a week saves a bundle. I love Starbucks coffee on the way to work, so I buy it at the supper market - 1.8 lbs for $15 vs. $6 to $8 per cup.
I realize I’m blessed to be in my position, but I happen to fall in this high earner category. 35 years old and a household net worth that is 1m+. Of that, almost 1m is liquid assets. I see my other colleagues and friends and notice the lifestyle creep or the what I assume is high debt lifestyle.
My family lives in a relatively average house and we drive almost 10 year old vehicles. We didn’t start that way but we’ve definitely followed some guidance to end up at this point.
Some will say this is a humble brag, and maybe it is (it’s not my intention)...but just wanted to say thank you for your content. I’m still learning and growing each day, but your information has helped tremendously.
Don't apologize, you're killing it. I feel the same way with some people I know as well
Prove it. I watched my entire neighbourhood pretend to be making it over the last 20 years. It's easy to type word on the internet.
@@stuff2008 Not sure how I’m supposed to prove it besides posting bank statements and that’s not my intention either. My point is basically like you said, there’s a lot of people pretending. Just keep plugging away day by day.
@@BG-qs6ii Thanks friend. It’s easy to get caught up with maintaining appearances. Wish you the best.
My current ride is a 2016 Honda Accord. Paid for in full. I plan to drive it until the wheels fall off.
If you see someone who's job and spending don't make sense, it's 1 of 3 things:
1) in debt upto their eyeballs
2) No 401k, RothIRA, 529, HSA, etc etc.
3) wealthy parents paying for them.
Reminds me of pro athletes. No matter how much you make, you can always spend it by buying too much house.
They also have to pay higher taxes and can’t pay it because they already spent it all 🤣
And have “a guy” who provides them money advice.
Poor peoples homes are full of good deals
@@Iamthenextmultimillionaire4400 It's called a budget, it does wonders regardless of ones income!!
I had a 6% mortgage and paid it off in 11 years...but I was saving alot during the same time. It's never and 'either or' question.
I had a 10% mortgage back in 74 and paid it off in three years, then rented that house out and bought another and used the rent from the first one and our earnings and paid off the second one in five years. We just kept that up, of course my wife had cancer three times and that set us back and of course 35% unemployment in our area didn't help either! Today we own 6 homes free and clear!
Shouldn't have had a 6% mortgage in that case
@@kemikunle9360 Yea, and I shouldn't have had an 10% mortgage either but was happy to get it when many were paying 16%. Wake up!!! how long do you think these lowest rates of interest in the history of the world have been around????
@@traskstoneworks Yeah, I'm a millenial lol
Should have just kept paying for next 30 years and invested that money. Inflation is ur friend if ur a home owner
Remind me of one of my clients . Dude lives in a small 2 bedroom 2 bath home. Little did I know he owns the 30 unit property across the street . There's always maintenance workers checking in and out of his home.
He always has shorts on and the same hawaiian palm tree shirt on. I've never seen him act flashy.
Goals.
Lifestyle Creep can kill your financial gains!
Exactly!. It kills and can make one helpless telling himself “had I known?”
The fact is that. Most people save rather than investing. Stop saving all the huge money rather let your money bring more money for you. If you really want financial freedom
Another thing is that 80% of these highly paid people love expensive liabilities not investments that's why when an emergency happens they can't come up with $1000 because there's nothing but liabilities laying around
@@gilbertaaroon32 Once you have an income that's support investing, even if it's just $600 a month - you can set your account to auto deduct the money from your bank account anytime your paycheck comes in. That is how to avoid losing everything
@@raymondthomas3898 In what ways and strategies can one invest $600 to yield good return?
When looking at the Social Security shortfall, it's important to note that if you earn say $200K/yr and you save 25% or more, then your living expenses are more like those of a person making $150K/yr or less, so you're getting the benefit of higher savings AND having a smaller expense shortfall to cover.
If I could go back 20 years, I'd laugh at my neighbors instead of trying to keep up with their material show and tells. Today, I just chuckle inside at some of the dumb decisions I made back then. I've redeemed myself, so all is awesome today.
I've laughed at people like that my whole life.
"Oh, look. Another overpriced doodad that will probably be outdated in 3 years the way technology is progressing." I'm more impressed with how intelligent another person is or what games they play and books they read than I am by the latest overpriced butt scratcher, TV, or chair that massages your face. Maybe I've always just been a cynical person with a bad attitude toward material things.
@Chris Nilsson The truth is that consumer junk is cheap and has gotten much cheaper relative to wages. Its the things that matter that have gotten much more expensive...housing, education, health insurance, child care, etc. I know it makes people feel good about themselves to tell other people that cell phones and tvs are making them poor, but it's really not the main reason so many are struggling. I bought my house at the bottom of the market with historically low interest rates. Thats enabled me to keep my housing costs level for 12 years while my household income has doubled. Houses in my area have gone up 80% and interest rates are higher by 3%. That new I phone every year doesn't make a shred of difference when you are talking about numbers like that.
No debt and when I temporarily lost my job at the beginning of COVID-19 it was more like a vacation than a crisis. I remember hearing about people not having money for this and that and thinking that was people on another planet.
Today it's not about return ON capital. Today it is about return OF capital.
As a manufacturing engineer, one of the first things you learn in school is that transportation does not add value to the product. One could apply this to commuting to work. It takes time and money just to get to work. The best thing you can do is work remote, reduce the time, or reduce the cost of the car. It BAFFLES me that people go for luxury cars and huge trucks just to commute when it does nothing for you. Driving a beater versus a supercar does not change the fact that you get where your going at the same speed limit.
I got a used car that will last me 10-15 years and next to where I park I see trucks, Cadillac's, and sports cars. I look online and these cars run $700-1200 a month and you know they don't have great credit scores so that's a higher interest rate right there! Throw in eating out, clothes, jewelry, expensive vacations, a lack of investing, and they will not retire before 80!
Keeping up with the Jones' gone wild.
Oh man I love this concept. I remember a financial commercial from when I was a kid. A penny saved is a penny earned that was the tag line. Stuck with me forever. Hope to be an everyday millionaire one day.
Benjamin Franklin ☺
These days is even better than earned since that saved penny is tax paid.
I get what you're saying about 15 yr loan vs a 30 yr loan for the house. It's pretty amazing. I went the "Paul" way because I lived in fear every day until I paid off my house. I guess I considered the down side of borrowing money to buy a house. I didn't like the thought of making a bet with the bank that I would be gainfully employed and could make that payment every month for the next 30 years. If I lost the bet, I lose the house, I lose the down payment, and I lose any money I paid towards the loan. In the mean time, I'm paying insurance, repair costs, property taxes, and utility costs. I wimped out and went for the 15 yr loan. Thanks for running the numbers and showing why we should take emotion out of major financial decisions.
I think there’s something to be said for the mental lightness that comes from having a paid off mortgage. What their video assumes is that the person who got the 30 yr mortgage would DILIGENTLY invest the difference for all 30 years. I’m not so sure I’d count in that, as stuff happens. (I say this as a person who paid off my mortgage by the age of 40).
Your average monthly expense table shocks me. I have a healthy income, but don't spend much on any of these luxuries. I'm happier living a simple life. I feel at peace. Spending so much on this stuff would just stress me out.
Most people have been socially successful. They have the social prowess to slide by with mediocre performance at work and yet get the promotions and accolades. I never got any breaks in my jobs, in spite of my accomplishments, and this gave me the feeling of insecurity which made me build up my savings. Now, I'm financially-independent in spite of years of below-normal earnings compared to others in my field. Being a social reject has its benefits.
Nice! Congrats on turning your situation into an opportunity and achieving FI!
I know quite a few people who are utterly brilliant at their jobs, but have turned down promotions, just worked steadily at a role that allows them to easily find the same job in the field somewhere else. like you, they're very money careful and now we're all in our 40s and 50s they're the ones who are financially ahead, unlike me who chased promotions, spent too much time at work, my job was the first to go whenever there was trouble and I'd have start at the bottom and work up. Those guys were totally onto something, just like you.
It’s a good approach, Phil. Sounds like you maintained the discipline to see it through. Now go and enjoy your success, you’ve earned it.
I’m just generalizing but we live in a world where consumerism is the way to live....spend, spend, spend on material things we don’t need. Most people don’t have a strong mindset and they feel the need to keep up with the latest and/or with other folks. It’s a vicious cycle.
Make money...buy stuff. Make even more money...time to upgrade. 🤦🏻♀️
So true. I almost fell into this trap. 10 years ago my husband and I bought a home , it was really cheap and a nice house. Fast forward 10 years we are making way more money and I almost wanted to upgrade because we made more and the smartest thing is for us to stay put and save.
Most of the doctors in my hospital spend so much money and as a registered nurse I am saving roughly 70% of my money. You'd think it's the other way lol
Middle class better off in USA , in Australia we equally poor unless you're in political class or Union class a multi millionaire
The high salaries in health care hurt society. I used to tutor nursing students and didn't think much of their intellect. As an inventing research scientist and seeing nurses make 2-3 times myself, it made me sick. Society loses from the huge inequity.
@@coopsnz1 that's because it is not a capitalist country
@@Jane5720 up to 90% tax on purchases fuel , liquar, products, cars, smokes.. min tax you pay weekly $400 including income tax. Thom Hartmann are liar
@@compresswealthdivideeconom3757 Just to clarify are you saying that tutors and research scientists should make as much as a nurse?
Hey guys, I stumbled upon your channel today while I was doing some end of year/beginning of year financial planning/personal goal planning. I really enjoy your content and look forward to checking out more of your videos. I have to say - not even joking - I feel like you guys represent the state of Georgia quite well and gave me a better impression of it. Thanks and great content.
What I like about as far as budgeting is my bank breaks down my spending for me and categories of food,medical,entertainment, cards etc. and gives you an idea by tracking how much you’ve spent month over month and how much you have saved month over month. Helps me keep track in real time and with real money.
Here's a crazy idea:
Find an occupation/job you enjoy so you don't spend the first 30-40 years of your life thinking, "how do I make enough money to retire?"
I have a job I enjoy, but I'm still thinking about how I can retire early. Work will still be work at some point.
Well I failed that one. Tried to pursue my dreams and that was a mess let me tell ya, good thing all the jobs I worked paying my way through college gave me actual valuable skills. I am a wealthy man now and I don't regret working jobs I hated or even my current career that I am indifferent to as a business owner. To hell with that philosophy of doing what you love, that kind of idealism ruins so many lives. Do what makes money, do what you love on the side. The goal is to make enough money to retire early and then do what you love full time!
That’s a myth. Work will always be work. Cake is pretty good but if you were forced to eat cake twice a day for 40 years you’d fucking hate it.
I don't follow that philosophy. Things I enjoy don't pay much. I'd much rather go to a job I don't particularly love, but make enough money so I can fund my hobbies outside of work.
Exactly. And sometimes you get lucky and have both. Love the job. And make the money. It took me a lonnng time to get there, but the payoff is worth it.
It’s not how much you make. It’s how much you money you save and invest Into the stock market and/or real estate on a consistent basic month after month and year after year.
So I'm in the merchant marine and we're up in Seattle and I'm one of the low guys on the finical totem pole, the guy next to me is the officers waiter. He says to me "kid it's not what you make it's what you do with what you make" a few minutes later the captains wife come and picks him up in an older Chevrolet. The waiter laughs, and says my wife will be here in a few minutes and will pick me up in our new fleetwood! He was very rich, he had learned the business of buying and selling from my father who was his senior officer on many ships he had sailed. I was nothing but a f king drunk till I met you dad he told me, your dad showed me how to become wealthy. He owned 5 homes in Seattle that he had rented out! This was back in the early 70's
I have never forgotten "it's not what you make it's what you do with what you make" and I have lived by that! we're not poor!
I deliver food to people, sometimes to very rich neighborhoods. Only 2-3 times have I ever seen a Rolls-Royce or a supercar there. These rich people typically buy a Toyota Camry, or occasionally a used Audi/Lexus.
I was quite surprised at first but now I understand. These people are just smart with their money.
Wow this video touches on so many incredibly important topics. As someone who is extremely passionate about personal finance, I love being able to listen to this stuff because I don't have many peers that like to talk about this stuff😂
Live like no one else so that one day you can live and GIVE like no one else
-Dave Ramsey
I like your approach to buying a car. I buy new, at the end of the year with lots of incentives. I keep my cars for at least 5 years. I keep them in good condition and when I buy a new one, I use the sales proceeds as a down payment. Usually payoff within 12 to 18 months. I was amazed that Dave Ramsey said you need to have a net worth in excess of $1 million dollars.
I became a millionaire last month. I only told one other person because we were having a conversation about building wealth.
Congratulations!
@@adbbbbbbbbbbb Thank you!
congrats!!
@@MarkNealJr Thank you!
I won’t tell anybody either congrats
I do HVAC work in Texas. 100% of the bounced checks my company has been written in the past 20 years were by customers in big houses in Southlake Texas, one of the most affluent towns in the USA...
Big hat, no cattle. Big house, no money.
Most wealthy people know that as their net worth grows, so does the target on their back. That is just one reason why they don't advertise it.
Just discovered you guys. Awesome stuff! As a 33 year old who just sold my first house (wish I would have rented it out instead), this hit the nail on the head.
Tummy, it's okay, this year with the pandemic we saw how risky being a landlord can be. Many landlords ended up losing so much money when tenants stopped paying for months on end...
Cracked $2million net worth 2yrs ago and nobody would think it looking at me, my sisters don't know 😂
I’m part of the high paid and broke...I consider myself middle class..I’m 42 and I have over 200,000 worth of law school debt. Great content. I learned a few pointers.
Geez
What is your net worth (if you don’t mind sharing)?
I did the opposite. After 50 I finally took the $100k in 401k and turned it into being a multimillionaire. As my rents paid for my properties and debt i also landed a $140k IT contract and wife job was bring in $50k. I reinvested it all over a couple years then made some more in the stock market.
$666/mo on vehicles for someone making 100k gross is INSANE. This country is drowning in debt and vanity vehicle purchases drive so much of the “living beyond your means” trend. My father and aunt are UHNW and both drive 10+ year old vehicles. 8% of my own household gross would be around 3400/mo and we have 0 vehicle debt. NEVER buy things you can’t afford to impress people you don’t know.
Every point made:
Dave Ramsey enters the chat.
have you tried beans and rice? ;-)
@@bjkarana That's such an insult to a Puerto Rican. We love our rice and beans!!!🤣
I am proud to be both a Melissa and a Paul - refinanced a 30yr mortgage at 2.375% and am investing every penny in the payment difference in dividend paying securities. Slow and steady. We can all do this if we keep reminding ourselves about the right financial practices to live our lives by.
Well I tried to explain to my wife the difference between owning something and renting something and your responsibilities about taking care of it. And then she got mad because I bought two new small farm tractors. She wanted me to buy a motorcycle so we could ride around on the weekends I bought the tractors so I could grow and sell vegetables to supplement our income. Last year she lost her job I made all of the payments and the bills and still had money left over after that. Because instead of buying a motorcycle a toy I bought an investment in the tractors to produce more income. So I work a full-time job and I farm part time and farming is getting more full-time every month it seems that my income is better growing and selling vegetables than it is working as a mechanic
Wow… this podcast changed my entire perspective. I am 25 making 150k a year and basically living like I’m a millionaire lol. Despite my income I have nothing in the bank, a good bit in retirement and investments but that’s it. This totally changed my outlook thank you so much
How are you doing now ? Are you living on less than you make ? And what do you do for a living ?
How are you pulling down 150K at 25? I assume you have a good education or are self employed.
I pray everyone who reads become Extremely successful and encounter a kind of blessing that will overcome all your fears,spend less and invest more !!
We should be careful on money useage,if you are not spending to earn back,then stop spending.
Thank u, same to U
I once hear an expression that says something along the lines of
“If you own your own home you’re working class, if you own someone else’s home you’re middle class”
#1 tip: stop listening to broke ppl. So many ppl told me what I NEEDED & DESERVED to buy who had no access to my financial info. On top of that, most of them were behind on their bills !
One of the problems is we don't look at things long term. Prime video, $6.97/month. Doesn't sound like much. That's $83.64/month. A monthly oaper fee for your checking account. $2/month. Thats $24/year.
What i have done is created a second dividend stock portfolio that pays me monthly. Those dividends pay for my monthly subscription for Prime video.
Started a small business and tripled my income in a couple years, we both (hubby and I)still are in the same apartment, saving, growing and making the right next decision. I became more frugal once I had to pay taxes, bills, overhead etc. Now I think about spending as a form of investment. If it's back into my business - is this going to result in more income or business? Or is it just a frivolous expense? Everyone should have to run a small business, it makes you frugal and conscientious in your decision making. Just my experience.
Where did that data suggesting 58% of people making 100k are carrying 2k of cc balance come from? I suspect that is average current balance, which would not be an unusual number for someone who pays off statement every month, rather than average carried balance.
Exactly what I was wondering. It also probably includes people with 0% promotions.
0% interest on a card or an auto is still really bad. Using the car example, that’s $500 a month to the bank rather than your brokerage account for 72 to 84 months.
@@flashoflight8160 0% financing is better than spending cash. You can invest what you would have spent and earn $ on it. That's assuming the financed price is the same as the cash price. In the case of credit card promotions, it is. You also often get 1-2% back in points on top of that.
@@flashoflight8160 At 0%, that’s 500 a month of current and future earnings going towards a purchase, not a banker. It is possible to invest a portion of your income monthly while buying things you want. Why is it always all or nothing in these financial circles.
It’s almost that time of year for the annual Warren Buffet episode
It’s coming 👍
@@MoneyGuyShow I'm as excited as Bo for that show.
One of my richest client had the same purse for 8 years. Also does her own hair.
Great information guys. Very well explained and I can relate to a lot of this as I'm sure many people can. I really liked the mortgage/investing comparison between the two options of 15 year and 30 year with investing. Thanks for sharing! 👍
Live like you aren’t a millionaire. I’m 61 and have only owned three trucks. I plan to keep my current 12 year old truck until it’s 25. Just because you can afford a Porsche, doesn’t mean you should buy one. I see young people working for me driving Lexus’ but they have no savings. I constantly talk to my workers about the importance of investing.
Please start spending money on things you will enjoy. If you’d enjoy a Porsche, get it if it’s only one percent of your wealth. One day something debilitating is going to happen, as it will to most of us, and you won’t be able to enjoy a sports car or go on a trip.
@@genxx2724 i dont think he enjoys a porche
@@BeastMode19799 Me neither, but he should get what he does enjoy.
I bring home 1900 $ a week after taxes I bought two houses rent out both and live in one on the first floor I save 1100 a week out my check I was homeless in my teens to early 20s I vowed to never be on that position again Iam only 35
Wow! Good for you!
*Paris Hall* What area of the country do you live in?
@@ayeflippum nyc
@@parishall114 Cool. I'm looking to purchase real estate in the future.
@@ayeflippum I got my Realestate in nj though currently trying to seek both properties while the market is at its peak when I crash I’ll start all over
I make $138K gross ($105K after taxes) and I save $60K per year - most in a taxable brokerage account.
Killin it man keep grinding
You are a true player, congratulations
What do you invest in ??
@@jeremytaylor5230 index funds and ETFS
@@jeremytaylor5230 65% IVV 20% IJH and 15% IJR if you want to know exactly
I'm a everyday millionaire (Dave Ramsey), debt-free, and am leaving most of my estate to charity.
Give me some? Please?
@@theblessedblackwoman Why?
@@jvolstad Because you said you want to give it away. I could use some money to start my handmade natural skincare business. I dont waste money. I plan to grow it.😊
Same here brother!! Before Chris Hogan's fall from Ramsey solutions he featured me on his podcast, website article and last November money conference at Ramsey solutions. Shriners hospital for children will get my retirement brokerage accounts. And I'm still investing to this day, retired and living off my pensions.
Amen.
I am from the South Side of Chicago, very lower middle class, blue collar. When I moved to Southern California, I realized that it was extremely important to look wealthy, expensive car, big home, fashionable clothing. I moved here in 1969. Everyone was trying to keep up with the Kardashians before there were Kardashians. Under the veneer of wealth there is often way too much debt. It seems like back in the 70's people were allowed to carry an absurd amount of debt. During the great recession, we saw how that played out. Over 10 million homeowners bought homes they could not possible afford. Today, you can get an infinite number of credit cards and a 19 year old with a $20K job can buy a $100K truck.