The graph at 12:50 - we messed up the order of the dates, but the data is correct - the dates should go from left to right 1989 to 2019. Also... how much do you save? Lmk below.
I just recently started saving 10% of my paycheck into my savings account every two weeks. It doesn't feel like much, but I feel a lot more proud of myself now knowing how the average person saves.
To maximize this cycle, focus on growth stocks, small caps, and Bitcoin. As someone pointed out too; Working with a financial advisor can save and make you money. For example, my advisor allocated a small part of my portfolio based on Nancy Pelosi’s investments, which is legal. That portion has increased by 71% in six months.
Sophia Irene Powell is the advisr I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Makes me feel good saving 20%. A great tip is when you’re done paying off you car loan. That same amount you paid every month, just put into a savings from now on. You already built a habit of spending that money a monthly basis but move it to the bank now.
Financial common sense! Unfortunately, many never pay off the car they can’t really afford in the first place, especially with these 6/7 year loans. They’re at the dealership again rolling negative equity into the next one.
Single mom here with toddler. Saved and invested 80 percent for the past 4 years. But business is down now. Never have I ever been so proud of myself for being frugal during the highs and the lows is much easier now.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
I have "Helene Claire Johnson" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
Great job. Fund a Roth IRA fully each year. It saves on taxes. Also be very careful who you marry. Divorce is expensive. You need someone with your same ideas about money and life.
@@happycook6737 great advice but unless the individual makes below 34k a Roth doesn't provide a tax credit or benefit. Although the advice is sound and I would recommend a Roth for many many reasons.
It’s not only spending habits. Higher incomes correlate strongly with being in high-cost areas such as NY or SF. The higher income is essentially negated by local price levels.
I was a company for about 10 yrs. The same year new management came in, I was diagnosed with cancer. Had surgery and treatment and went back to work after 3 months. The following year I was let go, as I was going back to check if the cancer was gone. Fortunately, I had saved 6 months of emergency funds. You just never know what life is going to throw at you
I have been using the 50/30/20 rule for a few years now. I talk with friends who can’t believe I save 20% of my income or even know of this rule. Life style creep is real but this rule makes it so the more money I make I can spend more but also save more. No guilty feeling for spending $1k on eating out if I already know I have saved $1500. Also with this rule any stock by your company (ESPP, RSU), 401k, HSA gets added back into your monthly pay. This made me realize I make way more than I thought on paper.
My only correction is that the majority of savings wasn't stuff people can cut out when not in lockdown. Childcare, gas, school events, parking, etc. all eat into people's money and are often required expenses as a feature of getting to and from employment or having children in school. It wasn't only discretionary spending that had nowhere to go - it was day to day "nickle and diming" as a feature of employer expectations.
School expenses? Just say no to school photos, yearbooks, fancy supplies, expensive overnight field trips, etc. Explain to the kids how finances work. Give them an allowance and let them know they can pay their own money for those school things. Do what is free. Buy school supplies at back to school time when they are sold as loss leaders. The number 1 money trap is thinking anything beyond a roof over your head, food to eat is a "must".
Also inflation on all of those things hasn't helped I'm sure. I agree that many people should be more careful with their finances but irresponsibly or excess doesn't explain it all.
@@happycook6737 Yes, but getting to school costs money (for some families). No matter how money conscious you are, leaving your home has costs associated with it for families or anyone not living beside (very near) their place of employment. And while I could forego my children's school things, I don't want to do that either. When they weren't attending classes in person, there weren't all those little fun things I want them to enjoy. Maybe no to the $5 pizza lunch, but the $20 bus excursion to the museum isn't necessary but is valuable and an important experience. My point is that there was simply much less of both required expenses (such as child care and gas) AND simple expenses as part of the day to day.
Yes, exactly! Plus, in the US some people used stimulus payments to help boost their savings, or there were other Covid relief programs that helped cut back on things that would've been financial strains. Lockdown was an exceptional case for a lot of reasons.
Only if a good amount of folks do what you say, just imagine how many millionaires we already have or will have in the future. Not the sad statistics where at least 50% of people are living paycheck to paycheck, even for high income earners. Great contents as always!
"Even for high income earners" - what about personal responsibility? I make over $400k per year and save roughly 87% of my take-home pay (renting an apartment, taking the bus, never eating out, never taking vacations, etc.) Guess I have it good that I have cheap hobbies, but those "sad statistics" you mentioned aren't even really sad. These are personal failures, not systemic ones. People are spending their money in a way that obviously makes them happy.
It would be all relative. The higher the average income the higher the RRP and taxes. At present we have greedy capitalist Govts that have "deeming rates" and in Australia, they reckon the average income is $120,000AUD, which is a load of BS! That would be the average wage of a degreed engineer or other university discipline (excluding teachers). So our RRP and taxes are based on the average wage of $120,000AUD and the actual average is $69,000AUD and the base wage is $45,905AUD. Very big difference in reality to the deeming rates. Mind you, 1.0AUD is equal to 0.63USD. So anything imported is super expensive.
I'm fully focused on increasing my income right now. I am not someone that struggles with living paycheck to paycheck which is a blessing, but I have dreams of working for myself to exponentially increase my income. This has forced me to increase my savings rate to around 50% for the last few months which has given me the runway I need (and plenty more) to take a chance on myself and my business to see what I can really do with it while I'm young and have fairly limited responsibilities. It all starts with the basics though!! Excellent work on this one man.
@@humphrey It was a lot of work, but like I said, I really don't have much responsibility right now. My main goal has been to save up at least 1-year's worth of an emergency fund so that I could detach from my 9-5 and work on my business full-time which I'm blessed to be able to say I've achieved. Even though my business is mainly my UA-cam channel, being able to focus my full-time effort on it with 12 months of savings (without counting my business income) was that final step I needed to take the leap.
This is an awesome video! I’m just out of college making 55k with no student loans and no car payment. On top of job benefits, I currently put 20% of my paycheck into savings accounts, and about to increase to 30% to save more for a down payment. Been saving 20% of every paycheck since I started working at 16. I’m very fortunate to be in my situation and to have the parents that I do that instilled in me this mindset. This video has incredibly important information and more people need to see this sort of thing.
@@wendytestaburger8321 yes I have investments, but I also do have a good amount in my bank account/ treasuries because I’m saving for a down payment and don’t want something to happen to it to where it couldn’t recover by the time I need it or something.
Love this. It doesn't surprise me that this many people live beyond their means. People love to buy buy and don't plan for their future. Just because you're making good money now doesn't guarantee that you will make this when you retire. You can get laid off at anytime. My dad told me save as much as you can. I'm fugal because that's how he raised me. He told me when you buy a house save up that money for 18 months of mortgage just in case you lose your job and save for an emergency. Buy what you need and not what you want. When you buy a house, he said wait at least five years before you make upgrades like on your kitchen or bathroom. If they are in good condition, it's just for looks and save that money for house repairs because on a resale home you don't know when something needs to be repaired. I know this because I had to do house repairs on my home the first year of ownership.
As the saying goes, "a fool and his money is easily parted". Spending $500 a month while earning $60k a year is bonkers that's 10% of their income, crazy.
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
I found her page by searching for her entire name online. After that, I emailed her and we set up a meeting so we could talk; I'm currently waiting on her response.
150k and I save 55% every month. I've long since gotten over wasting money on things I don't need. It wasn't always like that. But eventually I started feeling happier about having a big savings than I did about instant gratification. I'm probably over saving and not invensting enough of it.
140k and same. It's like a RPG - at first the low numbers suck, but then as you progress the numbers get bigger and you want it to keep growing. Game theory at its best ^_^
I am at 780k (household) and I am only able to save 40% of my after tax take home pay. I am not factoring in the 401ks which do get maxed out. Biggest issue is crazy expensive childcare that wife insists on. I love saving money and my wife loves spending money. That is the issue 😂
@@Matys1975 I am at ~$425k (single) and save roughly 87% of my take-home pay, which likely outpaces your household. Let this be a cautionary tale about marriage for all who read!
I did this out already because I was starting my dividend portfolio and wanted to see how long it would take to reach certain points. I make about 24.4k after taxes and saving 10k a year (average of 833 a month), with the plan being a split between SCHD, JEPI, and USOI. The crazy thing is, even saving that much it still takes about 7-8 years with DRIP to break the first 100k.
You live off 14k? That's impressive and hard to do. Your income will likely increase over time allowing you to save even more. Then your investments will grow more and more on their own. It will grow exponentially. The first 100k is hard, 200k is a bit easier, and it just gets faster and easier for each additional 100k.
My first job out of college, I made $60k and saved 50% of my net income… Now that I make $100k, it’s still only 50%. Lifestyle inflation is real, but honestly, it’s worth the nicer quality of living.
It's tough to save money. I'm thankful my relative helped me out. Things are tougher now, but it'll just take some time and a lot more effort. From personal experience, one bit of advice I have is recommending people treat quarterly and yearly expenses as monthly expenses. Example would be property taxes for those that own their own home. Treat your yearly property taxes as a monthly expense in the same manner you would rent. If you have $2400 a year in property taxes, you've technically got $200 a month in rent. Health insurance paid quarterly is broken down the same way into a monthly expense. I'm fortunate where my monthly expenses allow me to save money, but I also worry about not putting enough money away. It's a tough battle. Biggest thing I did was cut the cable cord and just have phone + high-speed internet with no Netflix, Hulu, Disney+, Amazon Prime, or any streaming services. It's 100% worth it.
That makes a lot of sense for anyone doing a monthly budget. Figure out how much those things cost every month so they're budgeted in and not a surprise bill. I can't stick to a monthly budget no matter how much I try. My spending varies greatly between months. Sometimes I'll load up on Costco, and other months I might not even enter a store. I just try to keep my yearly spending between 20-30k and that seems to work for me.
I paused the video to add up what I save. I'm saving 29% of every pay check. 23% for retirement and 6% for whatever I want ( home upgrades, toys, dinners out, travel)
Well, this makes me feel pretty good. I save 36% of my gross pay (or 50% of my net pay). I control my expenses so that allows me to save more. I even make my own laundry detergent. :)
The recipe is to have a good income. I was struggling 10-15 years ago. But I also made half of what I make now. Of course spending wisely too but there’s a minimum you gotta have to even start thinking about putting money away.
There’s no need to go overboard with the savings, unless you like making your own laundry detergent. Some people get unhealthily obsessed with saving every penny, but it’s ok to spend some of the money you make for enjoyment as well
I remember when I use to live paycheck to paycheck that’s was no joke but now I’m able to save my whole paycheck every time I get paid and I use to think it’s not possible to do but saving the whole 100% of your paycheck every two weeks is a big goal for me and I’m very proud of myself knowing that I’m can pay off my rent in a whole year plus I live in nyc so rent is not cheap another good thing is that I’m single don’t have kids don’t smoke and don’t drink I live below my means and I can care less about living a huge lifestyle like I see another’s out here doing which is sad if u ask me I’m just happy and very blessed
Thats great to hear, but make sure to show thanks for whatever brought you to this situation. It may not seem like it at first but you are very lucky. Being able to save 100% of your paycheck means something fishy is going on with your housing and/or food situation. Remember that hard work is not what got you there, it was mostly chance. Be thankful and help others around you because their happiness is your happiness
If you can afford to save that much while paying rent, it might be even better to spend a tad more and get into a condo. There are allot of factors that could help make renting the better option, just food for thought if it applies to you.
I make around 650,000 Indian Rupees (8,000 USD approx) per annum, I live a frugal life and save around 45-50% per month. I am 37 years old but i plan to retire before 50. Even when i get pay raise i like to keep my lifestyle same.
Also have to add in insurance as a fixed expense. School never teaches you that you have to pay monthly for Medical, Dental, and Vision, at least in America
2 things: 1) It would be useful to clarify if savings rate mentioned is based on net or gross income (unless I missed it). 2) What is the criteria used to define living paycheck-to-paycheck? When it comes to the percentage of wealthier individuals that are supposedly living paycheck-to-paycheck, I would be curious to know if they are taking into account retirement/savings contributions. I could see some people that employ a zero-based budgeting strategy mistakenly claiming that they live paycheck-to-paycheck.
A part time job really makes a big difference! I work about 14 hours a week in a deli & it's been a big help. After 3 years I'd like to quit but afraid to
Even making 100k as a family, -1/3 for taxes = 67 - 15k for retirement, =52k - 15k for rent = 37k, 6k for a car payment = 31k, 6k for family medical, = 25k, -12k for food, leaves about 13k left for auto insurance, gas and any socializing, electric, insurance, heating etc,
@Igor Icovski yea exactly, and being married makes your taxes waaaaay lower, even someone making $108k/yr before 401k contributions in California only pays 19% in taxes if filing jointly. After contributing a reasonable 6% in one's 401k, that number falls to less than 18% if married
Humphrey please don’t stop making videos you are very knowledgeable and skilled at breaking down finances in layman’s terms. I pray that God blesses you and your family for the hard work you put in! THANK YOUUUU ❤
It is possible if you live with your parents, these days. Most young people in the USA and UK leave their parents house to early. There is a very high price for that.
Choosing a Roth IRA is advantageous as it uses after-tax funds and allows tax-free growth. When I retired, I had $3M million saved, and I won't be taxed on my withdrawals.
I'm 32, just paid off all debt. I travel for work (airfare, hotel, car rental paid for). I sold my car, no house or apartment. It's a sacrifice being away from home, but i'm saving tons of money. Have about 20K saved up so far. I love this channel and these comments motivate me!
If you are living paycheck to paycheck and the problem isn’t unnecessary spending but bills on necessities, you just need a bigger shovel at that point Was in the same situation a few months ago, no matter how I saved it’d always get wiped out by student loans, insurance, etc. got a new job that’s triple the income ($52k) I used to have and now I’m able to better practice good saving habits
I am 34 and I just NEVER eat out and just live at my parent's home. That is how you save money. I look like a big baby who didn't grow up, but with inflation rates like this, this is what I can do.
Dude rent a cheap room. Living with your parents is not a good look, with a good paying job (you can get a high paying trade job without college education) you can still save plenty while renting a room. I turn 28 and am doing this currently, soon to be house hacking a rental property, Haven’t lived with my parents since 20 and even at that age it felt too long. I have friends still living with their parents, it seems way too common now days. Y’all gotta leave the nest, just being real.
@@JesseGMan7 I agree to some extent, but IF he is actually saving money at a fairly rapid rate and is not being lazy, there is nothing wrong with that. IF I did the same thing, my net worth would be close to a million at 31 years old. So it honestly depends on the discipline you have in that situation. Sure, you can say its not a good look, but IF life is good at home and he has a higher net worth than you THEN you would not be in the position to say this. There are plenty of people who left their parents home much earlier than me and they live a sad broke life.
@@FloppyDobbys If he wants to save money he can become an OTR truck driver and live for free in the truck. At 34 it’s past the time to leave the nest, unless you’re a special case of helping care for your parents or have disabilities. That’s my opinion. And what age did those people leave home (“living a sad broke life”). Cuz I understand 25 maybe 27 at the latest or coming back for a year or 2 if things went sour in life to get back on your feet. But to have never moved out at 30 or older c’mon!
I’m happy to announce that After having graduated about a year and a half ago, I’ve gotten a decent job to kick start my life with, and within the past 6 months I’ve stashed about 60% of my savings and am currently sitting at 11k in my savings. I’ve been wanting to decrease the ratio I’ve been saving a bit this summer to enjoy myself a bit but at this point seeing my bank account grow is much more addictive. My girlfriend and her family had started saving from a very early age and I’ve always seen myself in a playful competition with her, since her savings is at 80k. However, she is getting a PhD and is planning on using it on her loan for her final years of her program. So I’ve been wanting to save as much money as I can while I still live with my parents.
I'm in that 27.5% but it's not for the reason you think. Almost all of my close family and friends make minimum wage or barely above it, and some struggle even to maintain that. Inflation has really hit them hard, and many have gone through all of the savings they had accumulated before covid. I can't sit here putting $5k in my savings account every month while my mom's phone doesn't work because it's so old they decommissioned the network (3g), or or my best friend has to pray every time he goes to work that he doesn't get pulled over because he can't afford to renew his car registration, or my 17 year old sister-in-law can't afford her college tuition and has to drop out and get job just to help her parents pay for rent and food. The reality is that a person doesn't earn income in a bubble.
Oh wow, that's tough, especially if you have a close-knit family and dear friends who are practically family. It's like you love them so much that their pain is your pain. Are you able to put money aside for your own future, even if it's just $50 a pay period? Maybe if you can stash that in a high yield savings you can still see some benefit. You sound like a decent person and great son/brother in law/friend and I wish you well ❤️
Prioritizing savings is great but how much you need to save depends on how much you want to have in the future- if I am ok with living on the streets or in the h of nowhere, when people refuse to employ me anymore, I probably don't need to save anything. But most people don't want to end up there, so saving is more important than most people realize. Nice content!
I’m 23, just graduated with BME, working as a project engineer. I make 65k, (but hourly so I work tons of OT) and working enough to be able to save 1500$ biweekly, while still living within my means. Fulfilling my wants and needs. I’ve paid off 15000$ of student loans, and have less than 10k left of debt, I’ll be all paid off by October. The best thing I did for myself was discover that everything I consume for media and entertainment turned into finances and health and I’m acting in my goals every day.
The key is always feeling like you're living paycheck to paycheck. If you've maxed out your emergency fund, you should have all your money working for you in whatever investment vehicle you use. This way, you're never tempted to spend the "excess" income
I respect this. But can we get a breakdown of pay that includes maybe employee health ins, life ins etc. That is a necessity if u have a family and lowers the take home pay for most.
I started recently watching similar videos and I’ve realized that I’m a saving genius. I, my wife with 2 little kids in our mid 30s save in a good month around 5k a month. In a bad month (when we pay more services, travel, dentist, etc..) we save around 2k net.
What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?
All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.
@@LarsBergstrom-uh2eu Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The market looks very shaky. The bigger the red candles, the bigger the green ones. I have made over $280k in the last 4 months by investing through my FA.
@@AstaKristjan My financial advisor, "KATHLEEN YANELLI CAROLE", is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
I personally would add paying yourself before the necessities. Like $100 every paycheck will automatically get transferred into your savings without you having to do it. Live on less. Make it a habit and you will slowly adjust to getting paid "less" per paycheck. If you can live off that then slowly start adding more and more to the savings. Add like an extra $50 to see if you can handle the risk tolerance of having less money. Just keep doing it til you've reached the most you feel comfortable with saving per paycheck while having enough for necessities and having fun.
I’m saving 74% of my income. Currently own a home, drive an old car that’s paid off and no school or credit card debt. Only debt is a home mortgage at 4%. I was approved for a 500k loan but bought a simple one story home for 198k. 4 bed 2 bath, with pool & hot tub in a top school district if I needed to sell. I live below my means. No kids. No regrets.
im a 27 yr old male living in singapore earning a mere 25k sgd annually with a savings rate of 30%. i spend a 17% of my income paying off my loans. Is really tough out here then again im ever grateful to have a job.
I am a single 33 year old guy. I am able to save 80% of my income. The key here is to stay single and not have kids! I don’t have to worry about saving up for kids college and other kids expenses.
Lol i agree, whats the point? 😂The IRS will take ur money when you die or your relative will go for shopping spree when dead and gone. Save some but enjoy life. ✌🏽
This may be a dumb question, but can you define "saving?" If I have a healthy emergency savings account and forward a large percentage of my paycheck to my investments (401k, Roth, additional real estate principal) is this considered "saving" by your definition? Thanks!
That is ridiculous that still 28% of people making over $200,000 are living pay check to paycheck. I’m in the $50,000 range and the 2 months I get paid 3 times the 3rd one goes directly into savings. Also, most times I put away a quart of my paycheck to savings.
I agree with you putting 10 percent check-in emergency funds and 15 percent in saving and 15 percent in retirement. Every time I get a raise, I add half of the percent raise to my funds. Once max my emergency fund for the year rest, I move to my roth ira. Grow my divdend payout in my roth ira. When I retire, I'm good to go.
Humphrey does well and appreciate but, lucky for me i had parents or i will say my mom instilled the need for savings at an early age so it comes 2nd nature to me. Personal finance rocks!!
The goal should be 15% of gross salary for retirement. I have been doing 16.5% for about 30 years. This is a pretty tough Target to hit if you're young and you have college loans and you're trying to get your first car and your landlord is shaking you down. So I would say start out at 10% or even 8% if that's what it takes to get started. The other thing is that if you are saving 8% for retirement and then putting another 7% to build up your emergency fund that's all good. Your thoughts are bending in the right direction.
I was able to save 100k in 4 years. I know, it's not much of an accomplishment or achievement at the age of 30, but considering that I live in Southeast Asia where I don't have to pay Uncle Sam, I'm happy I don't have live paycheck to paycheck.
Here’s what I do: dump every check into index funds. If I have over 1200$ in my checking account and bills are paid, the rest gets dumped into an index and forgotten about.
These youtube videos are super helpful to novice investors. I changed my retirement saving rate a few years ago after watching a bunch of videos. I have maxed out my 401k and Roth IRA going on three years now. Something like that was never on my radar before. Now Im looking at looking at building passive income streams on top of my fulltime job. Thanks for all the info!
Your videos are always on point ❤ You and Gary Joe Wilde are highly recommendable investing coaches every investor who wants to get rich investing must work with. Unfortunately, don't know why Gary chose not to own a video channel here like other experts. He is long-established and very advanced in the field.
@higson Run a quick search about him you might see something... I remember Chris and Brian often recommended and promoted him in their early vids... It's been a while though. Learned he is a mentor to many reputable pros here.
i save a little more than 50% each month . i spend only 1\5 of my income . rest goes into emergency savings . 23 no loans , no car , no bike . nada . i live at my company hostel , i walk to work . i eat at home mostly but a couple times a week i ordered out . my biggest purchase by far is a rm3k pc . i almost had an impulse to buy a 7k one but common sense shut me down . i benefited from being a introvert , didn't bother to go out i grow up being middle class , didn't get to own much still didn't care to own much
Lifestyle creep and children, I assume. I have avoided both and have managed at least 20% savings rate most of my career making less than half that amount for the majority of the time.
Don't worry if someone tells you to come to Brazil. Brazil came to you through buy now pay later. We live like that since I was born, and we can pay everything in 12 statements directly on the credit card.
"or maybe don't drink alcohol at all - it's more healthy". Okay, Humphrey, now I LOVE your channel, but my single malt whisky is literally in the Fixed Expenses section in my consumables column on my personal finance spreadsheet. I love seeing at year end what I spent on Scotch 🤣
What do you mean by saving? Like putting into your 401k? or just putting the money into your savings? I'm putting 6% into my 401k and another 6% into my savings until I save 10k for my emergency fund.
In what planet do you spend $125 on utilities? My electric bill alone is $125. Then water is $45 and sewage is $75 and Natural gas is $75. That alone is $420 a month
I feel like having kids is not „helping“ when you want to save. There’s A) the times you cant work full time. B) child care cost. C) College cost. and D) everything is a necessity. When it’s just you it’s easy to skip a meal, forego buying a rain jacket - but with kids you have to deliver. I’m assuming most people are in that family category so overspending will happen all the time.
The problem with using Covid as an example is because you leave out a lot of important things that happened during this time. Many ppl recieve stimulus checks, ppl had rent and mortgage freezes, more ppl were able to work remote giving them the freedom to live in lower cost areas and many more factors to y ppl were saving. It doesn’t just boil down to “poor” saving habits.
I'm curious how they defined "paycheck-to-paycheck." Similar polls/surveys have respondents saying they loved paycheck to paycheck but they were making contributions to 401k and other retirement accounts.
It feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?
So what I do is buy companies that are doing good things, executing on business plans and then short companies that are missing earnings, it’s as simple as that.
@@georgemuller2329 we’ve been in a rally for the last decade, you just gotta accept not everyone is as knowledgeable in the market to handle the opportunities a crash market presents, and unfortunately for me too, I got in 2019 right before the market’s melting point, I just hope I recover soon enough before retirement. S`tay strong. I think the market will suffer more downtrends before full recovery, esp. with the inflation, hiked interest rate and looming recession bound to happen 2023, you should understand the market is not just finance and valuation, it’s history, it’s market psychology, it’s understanding how the world moves, which is why at this point in time, it’s ideal to work with an Investment-adviser with an unparalleled track record, from first hand experience, I could say they stand a better chance than most of us ever would and it has been reflecting on my portfolio. I made over $850k in net gains this year alone and I’m unbothered about the market outcomes cause I’m certain I’ll make a killing, it’s all perspective guys.
@@haywarddisean2539 Nicely said, I was thinking about going that route too, UA-camrs has been going on about opportunities at stake in this present market and I’d really love to set my portfolio up for whatever is coming 2023, could you recommend this coach that guides you?
@@guesswilson290 Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Location location location.... 200k on the Bay Area is like 100k or less in the midwest city. BnPL success is a clear indication of our addiction to consumerism.
It all just seems out of reach, or my expectations of financial independence are very high. I am 29, I started making 100k last year, my net worth is about 200k. I was only able to save this amount the last 4 years by living with my family. With inflation and current interest rates I would barely be able to afford a 130k mortgage. This means if I wanted a decent 200k condo in my area I need 70k down at least. Assuming 3% inflation, by the time I retire in 35 years I would need about 2.5million dollars to support a 40k life in today's money. This is just on my needs alone. I've just been depressed lately because becoming financially free by age 40-50 isn't realistic (or safe without a huge nest egg). I enjoy my job, but unless I make big moves I won't be able to live my "best life"
Nice video. When looking at the budget though, you left out that most people have to pay something toward their work benefits (e.g. health insurance), so take-home pay might be even less.
I have challenged myself to put away 50% of my monthly income into stock options which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager James Fletcher Brennan who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.
Why? Hopefully you aren't missing out on living life while you're still healthy. And did you mean $200k or is $20k your salary. Because if it's $20k you're for sure missing out.
It is not just spending habits it’s school loans and debt. I know this is a personal finance channel and you’re not necessarily ruling out what I’m saying here, but I hope others watching don’t think people just spend their life into immeasurable debt when they’re making alot of money. Usually you had to borrow before getting to those higher wages.
That is the scary part. Some had to have money to access higher wages so they already start with debts they must pay so their higher incomes are thought of as being a response to higher debts too. And for some the cost of living is much more expensive....
I also think that in 2020 most people had excess income from the extra unemployment. The few checks did not really make a dent, people used them to pay for debt.
"If you don't have a networth of $14,000 by 35 that's not when you should be panicking..." Up until the day I saw this video I wouldn't have ever believed a statement like that. I just turned 29yo and my net worth is way beyond that. If you're 35 and don't have a networth at or above $14,000 then what are you doing with your life? You're probably being scammed somehow.😅
Are we sure that the jump in personal savings in 2020 wasn't due to the stimulus payments? I know I was able to put my stimulus money into savings for awhile until I decided to put it toward an extra payment on the mortgage. That sounds about right for the timing and would make more sense.
I heard the spike was because they changed the laws about moving your money in and out of savings accounts and that made the available money (the metric you’re using) go up a lot. I’m not a finance guru FYI
I've been doing my expense tracking since 2015, and I am well clear on how much I'm spending each category each month and how much I'm saving. Also it would help to understand how much excess spending I can save. With all the figures, it's easy to plan for big purchases and plan for FIRE. With multiple streams of income, and right amount of expense, I can save 12k per month now.
Super interesting video! Makes me wonder about how I can change the path I’m on. Perhaps after saving 6 months of fat emergency expenses, I’ll be free to take more risks with my career. $50k is all I need for that
ty very much for this informative video im 21 making $975 after tax every week and I wanted to know how much I should save so i can spend more confidently
The graph at 12:50 - we messed up the order of the dates, but the data is correct - the dates should go from left to right 1989 to 2019. Also... how much do you save? Lmk below.
$1.20
I just recently started saving 10% of my paycheck into my savings account every two weeks. It doesn't feel like much, but I feel a lot more proud of myself now knowing how the average person saves.
@ 76.5% for the year so far.
6% into roth tsp. 8.5% into roth ira. The match is 5%, not sure if I should include the matching, but there ya go.
👆Thanks for the comment.
Text I have something lucrative to offer. 🚀
I have $80,000 in the money market that I want to move into stocks, but I’m scared of buying at the top. Any suggestions?
Stop trying to time the market; it’s far from peaking. Consult a financial advisor if you’re unsure to avoid being others’ exit liquidity.
To maximize this cycle, focus on growth stocks, small caps, and Bitcoin. As someone pointed out too; Working with a financial advisor can save and make you money. For example, my advisor allocated a small part of my portfolio based on Nancy Pelosi’s investments, which is legal. That portion has increased by 71% in six months.
wow!! this is impressive.. how can i reach this advisor if you don't mind me asking?
Sophia Irene Powell is the advisr I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Makes me feel good saving 20%.
A great tip is when you’re done paying off you car loan. That same amount you paid every month, just put into a savings from now on. You already built a habit of spending that money a monthly basis but move it to the bank now.
THIS Comment!!!! 🎉
I actually just thought that same thing yesterday! 😮
Yes I do this. Never have a car payment
Financial common sense! Unfortunately, many never pay off the car they can’t really afford in the first place, especially with these 6/7 year loans. They’re at the dealership again rolling negative equity into the next one.
And then you'll have enough $$$ to buy another car with cash or for emergencies.
Single mom here with toddler. Saved and invested 80 percent for the past 4 years. But business is down now. Never have I ever been so proud of myself for being frugal during the highs and the lows is much easier now.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead or retirement. Can I get access to your advisor?
I have "Helene Claire Johnson" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
Thanks for the info, i found her website and sent a message hopefully she replies soon.
21 and saved $40k so far 😎
Wow! Nice man
Great job. Fund a Roth IRA fully each year. It saves on taxes. Also be very careful who you marry. Divorce is expensive. You need someone with your same ideas about money and life.
@@happycook6737 great advice but unless the individual makes below 34k a Roth doesn't provide a tax credit or benefit. Although the advice is sound and I would recommend a Roth for many many reasons.
Great momentum.. now you have no excuse to not hit the $100k savings mark at least once🎉🎉
Buy a house!
It’s not only spending habits. Higher incomes correlate strongly with being in high-cost areas such as NY or SF. The higher income is essentially negated by local price levels.
Lifestyle-influation is the biggest trap that keeps people poor.
I don’t think anybody seriously says it’s only spending habits lol
I was a company for about 10 yrs. The same year new management came in, I was diagnosed with cancer. Had surgery and treatment and went back to work after 3 months. The following year I was let go, as I was going back to check if the cancer was gone. Fortunately, I had saved 6 months of emergency funds. You just never know what life is going to throw at you
How does one become a company?
@@jackfranklin1185 Clown
I have been using the 50/30/20 rule for a few years now. I talk with friends who can’t believe I save 20% of my income or even know of this rule. Life style creep is real but this rule makes it so the more money I make I can spend more but also save more. No guilty feeling for spending $1k on eating out if I already know I have saved $1500. Also with this rule any stock by your company (ESPP, RSU), 401k, HSA gets added back into your monthly pay. This made me realize I make way more than I thought on paper.
LOVE that Caleb, great job.
My only correction is that the majority of savings wasn't stuff people can cut out when not in lockdown. Childcare, gas, school events, parking, etc. all eat into people's money and are often required expenses as a feature of getting to and from employment or having children in school. It wasn't only discretionary spending that had nowhere to go - it was day to day "nickle and diming" as a feature of employer expectations.
School expenses? Just say no to school photos, yearbooks, fancy supplies, expensive overnight field trips, etc. Explain to the kids how finances work. Give them an allowance and let them know they can pay their own money for those school things. Do what is free. Buy school supplies at back to school time when they are sold as loss leaders. The number 1 money trap is thinking anything beyond a roof over your head, food to eat is a "must".
Also inflation on all of those things hasn't helped I'm sure. I agree that many people should be more careful with their finances but irresponsibly or excess doesn't explain it all.
@@happycook6737 Yes, but getting to school costs money (for some families). No matter how money conscious you are, leaving your home has costs associated with it for families or anyone not living beside (very near) their place of employment. And while I could forego my children's school things, I don't want to do that either. When they weren't attending classes in person, there weren't all those little fun things I want them to enjoy. Maybe no to the $5 pizza lunch, but the $20 bus excursion to the museum isn't necessary but is valuable and an important experience. My point is that there was simply much less of both required expenses (such as child care and gas) AND simple expenses as part of the day to day.
Yes, exactly! Plus, in the US some people used stimulus payments to help boost their savings, or there were other Covid relief programs that helped cut back on things that would've been financial strains. Lockdown was an exceptional case for a lot of reasons.
@@nicokelly6453 saved them just to spend them later smh
Only if a good amount of folks do what you say, just imagine how many millionaires we already have or will have in the future. Not the sad statistics where at least 50% of people are living paycheck to paycheck, even for high income earners. Great contents as always!
"Even for high income earners" - what about personal responsibility? I make over $400k per year and save roughly 87% of my take-home pay (renting an apartment, taking the bus, never eating out, never taking vacations, etc.)
Guess I have it good that I have cheap hobbies, but those "sad statistics" you mentioned aren't even really sad. These are personal failures, not systemic ones. People are spending their money in a way that obviously makes them happy.
It would be all relative. The higher the average income the higher the RRP and taxes. At present we have greedy capitalist Govts that have "deeming rates" and in Australia, they reckon the average income is $120,000AUD, which is a load of BS! That would be the average wage of a degreed engineer or other university discipline (excluding teachers). So our RRP and taxes are based on the average wage of $120,000AUD and the actual average is $69,000AUD and the base wage is $45,905AUD. Very big difference in reality to the deeming rates. Mind you, 1.0AUD is equal to 0.63USD. So anything imported is super expensive.
Supply and demand, everything would get exponentially more expensive.
I'm fully focused on increasing my income right now. I am not someone that struggles with living paycheck to paycheck which is a blessing, but I have dreams of working for myself to exponentially increase my income. This has forced me to increase my savings rate to around 50% for the last few months which has given me the runway I need (and plenty more) to take a chance on myself and my business to see what I can really do with it while I'm young and have fairly limited responsibilities. It all starts with the basics though!! Excellent work on this one man.
Damnnn 50% is insane. excellent work yourself
@@humphrey It was a lot of work, but like I said, I really don't have much responsibility right now. My main goal has been to save up at least 1-year's worth of an emergency fund so that I could detach from my 9-5 and work on my business full-time which I'm blessed to be able to say I've achieved. Even though my business is mainly my UA-cam channel, being able to focus my full-time effort on it with 12 months of savings (without counting my business income) was that final step I needed to take the leap.
Awesome, unfortunately not everyone can have side hustles... :(
This is an awesome video! I’m just out of college making 55k with no student loans and no car payment. On top of job benefits, I currently put 20% of my paycheck into savings accounts, and about to increase to 30% to save more for a down payment. Been saving 20% of every paycheck since I started working at 16. I’m very fortunate to be in my situation and to have the parents that I do that instilled in me this mindset. This video has incredibly important information and more people need to see this sort of thing.
Well done, good financial discipline! 🎉
Mann. The sky is the limit for you ! Wish I knew this knowledge at the age. But I'm learning now. Your already ahead of the curb. Keep going !
You mean you put the money into investments that make you money right not put it into your bank and wait till your money becomes worth less
Talk to us when you pay rent. And don't say you do cuz you don't
@@wendytestaburger8321 yes I have investments, but I also do have a good amount in my bank account/ treasuries because I’m saving for a down payment and don’t want something to happen to it to where it couldn’t recover by the time I need it or something.
Love this. It doesn't surprise me that this many people live beyond their means. People love to buy buy and don't plan for their future. Just because you're making good money now doesn't guarantee that you will make this when you retire. You can get laid off at anytime. My dad told me save as much as you can. I'm fugal because that's how he raised me. He told me when you buy a house save up that money for 18 months of mortgage just in case you lose your job and save for an emergency. Buy what you need and not what you want. When you buy a house, he said wait at least five years before you make upgrades like on your kitchen or bathroom. If they are in good condition, it's just for looks and save that money for house repairs because on a resale home you don't know when something needs to be repaired. I know this because I had to do house repairs on my home the first year of ownership.
Well said Courtney
As the saying goes, "a fool and his money is easily parted". Spending $500 a month while earning $60k a year is bonkers that's 10% of their income, crazy.
Great fathers are rare to find! This is great counsel that he gave you. You are blessed.
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
The current market conditions may provide opportunities to increase revenues swiftly; however, experience is required to carry out such a plan.
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
That does make a lot of sense; you appear to understand the market better than we do. This coach is who?
Actually its a Lady. Yes my go to person is a ‘Rebecca Nassar Dunne'. So easy and compassionate Lady. You should take a look at her work.
I found her page by searching for her entire name online. After that, I emailed her and we set up a meeting so we could talk; I'm currently waiting on her response.
150k and I save 55% every month. I've long since gotten over wasting money on things I don't need. It wasn't always like that. But eventually I started feeling happier about having a big savings than I did about instant gratification. I'm probably over saving and not invensting enough of it.
140k and same. It's like a RPG - at first the low numbers suck, but then as you progress the numbers get bigger and you want it to keep growing. Game theory at its best ^_^
I am at 780k (household) and I am only able to save 40% of my after tax take home pay. I am not factoring in the 401ks which do get maxed out. Biggest issue is crazy expensive childcare that wife insists on. I love saving money and my wife loves spending money. That is the issue 😂
@@Matys1975 What's your profession?
@@Matys1975 I am at ~$425k (single) and save roughly 87% of my take-home pay, which likely outpaces your household. Let this be a cautionary tale about marriage for all who read!
@@ladye2818probably sells feet pics on onlyfans
I did this out already because I was starting my dividend portfolio and wanted to see how long it would take to reach certain points.
I make about 24.4k after taxes and saving 10k a year (average of 833 a month), with the plan being a split between SCHD, JEPI, and USOI.
The crazy thing is, even saving that much it still takes about 7-8 years with DRIP to break the first 100k.
Yes, it does take awhile but once you hit 100K the next 100K is easier!
In those 7-8 years your income will increase for sure! People generally don’t stay in those jobs for long
You live off 14k? That's impressive and hard to do. Your income will likely increase over time allowing you to save even more. Then your investments will grow more and more on their own. It will grow exponentially. The first 100k is hard, 200k is a bit easier, and it just gets faster and easier for each additional 100k.
My first job out of college, I made $60k and saved 50% of my net income… Now that I make $100k, it’s still only 50%. Lifestyle inflation is real, but honestly, it’s worth the nicer quality of living.
It's tough to save money. I'm thankful my relative helped me out. Things are tougher now, but it'll just take some time and a lot more effort.
From personal experience, one bit of advice I have is recommending people treat quarterly and yearly expenses as monthly expenses. Example would be property taxes for those that own their own home. Treat your yearly property taxes as a monthly expense in the same manner you would rent. If you have $2400 a year in property taxes, you've technically got $200 a month in rent. Health insurance paid quarterly is broken down the same way into a monthly expense.
I'm fortunate where my monthly expenses allow me to save money, but I also worry about not putting enough money away. It's a tough battle. Biggest thing I did was cut the cable cord and just have phone + high-speed internet with no Netflix, Hulu, Disney+, Amazon Prime, or any streaming services. It's 100% worth it.
That makes a lot of sense for anyone doing a monthly budget. Figure out how much those things cost every month so they're budgeted in and not a surprise bill.
I can't stick to a monthly budget no matter how much I try. My spending varies greatly between months. Sometimes I'll load up on Costco, and other months I might not even enter a store. I just try to keep my yearly spending between 20-30k and that seems to work for me.
I paused the video to add up what I save. I'm saving 29% of every pay check. 23% for retirement and 6% for whatever I want ( home upgrades, toys, dinners out, travel)
Well, this makes me feel pretty good. I save 36% of my gross pay (or 50% of my net pay). I control my expenses so that allows me to save more. I even make my own laundry detergent. :)
What's the recipe if you don't mind?
The recipe is to have a good income. I was struggling 10-15 years ago. But I also made half of what I make now. Of course spending wisely too but there’s a minimum you gotta have to even start thinking about putting money away.
@@daviddaviedavidson Definitely but there's also people who throw away their money on things they don't need.
@@chimera5542 for sure …all the time. You’re right.
There’s no need to go overboard with the savings, unless you like making your own laundry detergent. Some people get unhealthily obsessed with saving every penny, but it’s ok to spend some of the money you make for enjoyment as well
I remember when I use to live paycheck to paycheck that’s was no joke but now I’m able to save my whole paycheck every time I get paid and I use to think it’s not possible to do but saving the whole 100% of your paycheck every two weeks is a big goal for me and I’m very proud of myself knowing that I’m can pay off my rent in a whole year plus I live in nyc so rent is not cheap another good thing is that I’m single don’t have kids don’t smoke and don’t drink I live below my means and I can care less about living a huge lifestyle like I see another’s out here doing which is sad if u ask me I’m just happy and very blessed
Thats great to hear, but make sure to show thanks for whatever brought you to this situation. It may not seem like it at first but you are very lucky. Being able to save 100% of your paycheck means something fishy is going on with your housing and/or food situation. Remember that hard work is not what got you there, it was mostly chance. Be thankful and help others around you because their happiness is your happiness
If you can afford to save that much while paying rent, it might be even better to spend a tad more and get into a condo.
There are allot of factors that could help make renting the better option, just food for thought if it applies to you.
I make around 650,000 Indian Rupees (8,000 USD approx) per annum, I live a frugal life and save around 45-50% per month. I am 37 years old but i plan to retire before 50. Even when i get pay raise i like to keep my lifestyle same.
Also have to add in insurance as a fixed expense. School never teaches you that you have to pay monthly for Medical, Dental, and Vision, at least in America
2 things:
1) It would be useful to clarify if savings rate mentioned is based on net or gross income (unless I missed it).
2) What is the criteria used to define living paycheck-to-paycheck? When it comes to the percentage of wealthier individuals that are supposedly living paycheck-to-paycheck, I would be curious to know if they are taking into account retirement/savings contributions. I could see some people that employ a zero-based budgeting strategy mistakenly claiming that they live paycheck-to-paycheck.
A part time job really makes a big difference! I work about 14 hours a week in a deli & it's been a big help. After 3 years I'd like to quit but afraid to
Even making 100k as a family, -1/3 for taxes = 67 - 15k for retirement, =52k - 15k for rent = 37k, 6k for a car payment = 31k, 6k for family medical, = 25k, -12k for food, leaves about 13k left for auto insurance, gas and any socializing, electric, insurance, heating etc,
How do you pay 33% in taxes with 15k going to retirement?
@Igor Icovski yea exactly, and being married makes your taxes waaaaay lower, even someone making $108k/yr before 401k contributions in California only pays 19% in taxes if filing jointly. After contributing a reasonable 6% in one's 401k, that number falls to less than 18% if married
Humphrey please don’t stop making videos you are very knowledgeable and skilled at breaking down finances in layman’s terms. I pray that God blesses you and your family for the hard work you put in! THANK YOUUUU ❤
It is possible if you live with your parents, these days. Most young people in the USA and UK leave their parents house to early. There is a very high price for that.
Choosing a Roth IRA is advantageous as it uses after-tax funds and allows tax-free growth. When I retired, I had $3M million saved, and I won't be taxed on my withdrawals.
Currently, my primary worry is how to increase revenue during periods of quantitative easing. I cannot afford to witness my savings dwindle away.
I'm 32, just paid off all debt. I travel for work (airfare, hotel, car rental paid for). I sold my car, no house or apartment. It's a sacrifice being away from home, but i'm saving tons of money. Have about 20K saved up so far. I love this channel and these comments motivate me!
What field do you work in? Traveling for work sounds awesome.
You should do a graph on people who only make roughly 2,000 a month
If you are living paycheck to paycheck and the problem isn’t unnecessary spending but bills on necessities, you just need a bigger shovel at that point
Was in the same situation a few months ago, no matter how I saved it’d always get wiped out by student loans, insurance, etc. got a new job that’s triple the income ($52k) I used to have and now I’m able to better practice good saving habits
I am 34 and I just NEVER eat out and just live at my parent's home. That is how you save money. I look like a big baby who didn't grow up, but with inflation rates like this, this is what I can do.
Dude rent a cheap room. Living with your parents is not a good look, with a good paying job (you can get a high paying trade job without college education) you can still save plenty while renting a room. I turn 28 and am doing this currently, soon to be house hacking a rental property, Haven’t lived with my parents since 20 and even at that age it felt too long. I have friends still living with their parents, it seems way too common now days. Y’all gotta leave the nest, just being real.
@@JesseGMan7 I agree to some extent, but IF he is actually saving money at a fairly rapid rate and is not being lazy, there is nothing wrong with that.
IF I did the same thing, my net worth would be close to a million at 31 years old. So it honestly depends on the discipline you have in that situation.
Sure, you can say its not a good look, but IF life is good at home and he has a higher net worth than you THEN you would not be in the position to say this.
There are plenty of people who left their parents home much earlier than me and they live a sad broke life.
@@FloppyDobbys If he wants to save money he can become an OTR truck driver and live for free in the truck. At 34 it’s past the time to leave the nest, unless you’re a special case of helping care for your parents or have disabilities. That’s my opinion.
And what age did those people leave home (“living a sad broke life”). Cuz I understand 25 maybe 27 at the latest or coming back for a year or 2 if things went sour in life to get back on your feet. But to have never moved out at 30 or older c’mon!
It is other way to say he’s a loser
@@JesseGMan7not a good look for who? Why should he care about what others think?
I’m happy to announce that After having graduated about a year and a half ago, I’ve gotten a decent job to kick start my life with, and within the past 6 months I’ve stashed about 60% of my savings and am currently sitting at 11k in my savings. I’ve been wanting to decrease the ratio I’ve been saving a bit this summer to enjoy myself a bit but at this point seeing my bank account grow is much more addictive.
My girlfriend and her family had started saving from a very early age and I’ve always seen myself in a playful competition with her, since her savings is at 80k. However, she is getting a PhD and is planning on using it on her loan for her final years of her program. So I’ve been wanting to save as much money as I can while I still live with my parents.
I'm in that 27.5% but it's not for the reason you think. Almost all of my close family and friends make minimum wage or barely above it, and some struggle even to maintain that. Inflation has really hit them hard, and many have gone through all of the savings they had accumulated before covid. I can't sit here putting $5k in my savings account every month while my mom's phone doesn't work because it's so old they decommissioned the network (3g), or or my best friend has to pray every time he goes to work that he doesn't get pulled over because he can't afford to renew his car registration, or my 17 year old sister-in-law can't afford her college tuition and has to drop out and get job just to help her parents pay for rent and food. The reality is that a person doesn't earn income in a bubble.
Oh wow, that's tough, especially if you have a close-knit family and dear friends who are practically family. It's like you love them so much that their pain is your pain. Are you able to put money aside for your own future, even if it's just $50 a pay period? Maybe if you can stash that in a high yield savings you can still see some benefit.
You sound like a decent person and great son/brother in law/friend and I wish you well ❤️
Prioritizing savings is great but how much you need to save depends on how much you want to have in the future- if I am ok with living on the streets or in the h of nowhere, when people refuse to employ me anymore, I probably don't need to save anything. But most people don't want to end up there, so saving is more important than most people realize. Nice content!
I’m 23, just graduated with BME, working as a project engineer. I make 65k, (but hourly so I work tons of OT) and working enough to be able to save 1500$ biweekly, while still living within my means. Fulfilling my wants and needs.
I’ve paid off 15000$ of student loans, and have less than 10k left of debt, I’ll be all paid off by October. The best thing I did for myself was discover that everything I consume for media and entertainment turned into finances and health and I’m acting in my goals every day.
The key is always feeling like you're living paycheck to paycheck. If you've maxed out your emergency fund, you should have all your money working for you in whatever investment vehicle you use. This way, you're never tempted to spend the "excess" income
About 50% for taxes, 10% of gross to TFSA (roth-ish). 20% daily savings for rent and emergencies.
I like to save 30% of my net income minimum every month and this month I’m saving 35.7% 🙌🏽
Keeping my costs very low. I only earn like 2700 + 1500 from my own business a month and I manage to save around 1000 up to a 1200 each month.
I respect this. But can we get a breakdown of pay that includes maybe employee health ins, life ins etc. That is a necessity if u have a family and lowers the take home pay for most.
If the insurances are offered through the employer, it is already factored into the take home pay
I started recently watching similar videos and I’ve realized that I’m a saving genius. I, my wife with 2 little kids in our mid 30s save in a good month around 5k a month. In a bad month (when we pay more services, travel, dentist, etc..) we save around 2k net.
What happened to SVB is really scary, and goes to show that no corporation, however big, is immune to collapse. I have always had a deep-seated mistrust for corporations. I have plans to pull out most of my money, but don't know what to do with $350k sitting idly. I'd like to go into the stock market, maybe. Any ideas?
All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.
@@LarsBergstrom-uh2eu Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The market looks very shaky. The bigger the red candles, the bigger the green ones. I have made over $280k in the last 4 months by investing through my FA.
@@Erinmills98 Wow. I've heard similar success story from people who work with advisors. How do I get in touch with yours, please?
@@AstaKristjan My financial advisor, "KATHLEEN YANELLI CAROLE", is a highly qualified and experienced professional in the financial market. She possesses a broad understanding of portfolio diversification and is recognized as an expert in this field.
@@Erinmills98 Definitely gonna check her out.
I personally would add paying yourself before the necessities. Like $100 every paycheck will automatically get transferred into your savings without you having to do it. Live on less. Make it a habit and you will slowly adjust to getting paid "less" per paycheck. If you can live off that then slowly start adding more and more to the savings. Add like an extra $50 to see if you can handle the risk tolerance of having less money. Just keep doing it til you've reached the most you feel comfortable with saving per paycheck while having enough for necessities and having fun.
Nothing like a finance video to make me realize financially I am very far behind from where i’d want to be
I’m saving 74% of my income. Currently own a home, drive an old car that’s paid off and no school or credit card debt. Only debt is a home mortgage at 4%. I was approved for a 500k loan but bought a simple one story home for 198k. 4 bed 2 bath, with pool & hot tub in a top school district if I needed to sell. I live below my means. No kids. No regrets.
very nice, mark.
What state do you live in? Today's deal getter homes cost 500k in California
@@twinkletooty8358 Dallas Texas
why do u have a 4 bedroom if u dont have kids? just curious. do u have a lot of guests or work from home?
@@trailertrish planning on having kids in the future. I got married last year. Yes I work from home a lot as does my wife
At least 10 percent of your gross income. Ideally between 25 and 50 percent of your income will set you on the fast track to financial freedom.
Yes sir exactly
im a 27 yr old male living in singapore earning a mere 25k sgd annually with a savings rate of 30%. i spend a 17% of my income paying off my loans. Is really tough out here then again im ever grateful to have a job.
I am a single 33 year old guy. I am able to save 80% of my income. The key here is to stay single and not have kids! I don’t have to worry about saving up for kids college and other kids expenses.
Sad.
Lol i agree, whats the point? 😂The IRS will take ur money when you die or your relative will go for shopping spree when dead and gone. Save some but enjoy life. ✌🏽
or a life
And live with your parents?
You can save some more if you stop eating. Hey maybe trade shoes for flip flops and save 99%.
Ive been saving 35-42% of my monthly income since i was 21. 23 now and gearing up to buy an investment property
Excellent video. People blew all of those stimulus checks with nothing to show for it.
thanks Will!
Not me
This may be a dumb question, but can you define "saving?" If I have a healthy emergency savings account and forward a large percentage of my paycheck to my investments (401k, Roth, additional real estate principal) is this considered "saving" by your definition? Thanks!
That is ridiculous that still 28% of people making over $200,000 are living pay check to paycheck. I’m in the $50,000 range and the 2 months I get paid 3 times the 3rd one goes directly into savings. Also, most times I put away a quart of my paycheck to savings.
I agree with you putting 10 percent check-in emergency funds and 15 percent in saving and 15 percent in retirement. Every time I get a raise, I add half of the percent raise to my funds. Once max my emergency fund for the year rest, I move to my roth ira. Grow my divdend payout in my roth ira. When I retire, I'm good to go.
27, got about 10k for an emergency and 35k in etf's
Saving 25% a month + whatever is left at the end of the month
Already gained so much knowledge from you man! We definitely need to spread awareness about saving and how important it is
thank you my bro, absolutely
Humphrey does well and appreciate but, lucky for me i had parents or i will say my mom instilled the need for savings at an early age so it comes 2nd nature to me. Personal finance rocks!!
The goal should be 15% of gross salary for retirement. I have been doing 16.5% for about 30 years. This is a pretty tough Target to hit if you're young and you have college loans and you're trying to get your first car and your landlord is shaking you down. So I would say start out at 10% or even 8% if that's what it takes to get started. The other thing is that if you are saving 8% for retirement and then putting another 7% to build up your emergency fund that's all good. Your thoughts are bending in the right direction.
I was able to save 100k in 4 years. I know, it's not much of an accomplishment or achievement at the age of 30, but considering that I live in Southeast Asia where I don't have to pay Uncle Sam, I'm happy I don't have live paycheck to paycheck.
That's a huge accomplishment, don't sell yourself short, keep up the good work 👍🏾
Saving 25 thousand dollars a year is excellent not sure where youre coming from thinking that is not an accomplishment
Here’s what I do: dump every check into index funds. If I have over 1200$ in my checking account and bills are paid, the rest gets dumped into an index and forgotten about.
These youtube videos are super helpful to novice investors. I changed my retirement saving rate a few years ago after watching a bunch of videos. I have maxed out my 401k and Roth IRA going on three years now. Something like that was never on my radar before. Now Im looking at looking at building passive income streams on top of my fulltime job. Thanks for all the info!
Great to hear Masood!!!
I share a house with my sister and her family and we split the bills and expenses. I've been putting away 400 dollars a month lately .
Your videos are always on point ❤ You and Gary Joe Wilde are highly recommendable investing coaches every investor who wants to get rich investing must work with. Unfortunately, don't know why Gary chose not to own a video channel here like other experts. He is long-established and very advanced in the field.
@higson Run a quick search about him you might see something... I remember Chris and Brian often recommended and promoted him in their early vids... It's been a while though. Learned he is a mentor to many reputable pros here.
@Sonya Ken Same here. Convincing me was hard now I wish I knew him before the crash. lol
scam
i save a little more than 50% each month . i spend only 1\5 of my income . rest goes into emergency savings . 23 no loans , no car , no bike . nada . i live at my company hostel , i walk to work . i eat at home mostly but a couple times a week i ordered out . my biggest purchase by far is a rm3k pc . i almost had an impulse to buy a 7k one but common sense shut me down .
i benefited from being a introvert , didn't bother to go out
i grow up being middle class , didn't get to own much
still didn't care to own much
Very curious on how you can live paycheck to paycheck making 100k a year. That's crazy😭
Lifestyle creep and children, I assume. I have avoided both and have managed at least 20% savings rate most of my career making less than half that amount for the majority of the time.
Don't worry if someone tells you to come to Brazil. Brazil came to you through buy now pay later. We live like that since I was born, and we can pay everything in 12 statements directly on the credit card.
"or maybe don't drink alcohol at all - it's more healthy". Okay, Humphrey, now I LOVE your channel, but my single malt whisky is literally in the Fixed Expenses section in my consumables column on my personal finance spreadsheet. I love seeing at year end what I spent on Scotch 🤣
hahaha Lise! fair enough
Hey, as long as it's in the budget, yaknow? 🤷😂
Yea isn't poisoning yourself so awesome?
I like this woman. Red label the best
What do you mean by saving? Like putting into your 401k? or just putting the money into your savings? I'm putting 6% into my 401k and another 6% into my savings until I save 10k for my emergency fund.
60k annual salary.. take home is 3880?? Where i make 66k annual and take home about 2880. I put 125 towards 403b
This! The take home pay is less than that for our family after taxes, medical, life ins etc
I'm 23. Worked full time during highschool and 80 hours a week age 18 to 23. Now have enough for a house 0 mortgage.
In what planet do you spend $125 on utilities? My electric bill alone is $125. Then water is $45 and sewage is $75 and Natural gas is $75. That alone is $420 a month
Yup, very unrealistic.
Common in cities like NYC. I don't pay for water, sewage or natural gas. Just an electric bill.
@@dannyaskins9754same, I just pay electric and cooking gas 🤷🏻♀️
My electric, water, sewer, gas, and internet are $200-250 on the bad months. Live in the Midwest and make ~120k
I feel like having kids is not „helping“ when you want to save. There’s A) the times you cant work full time. B) child care cost. C) College cost. and D) everything is a necessity. When it’s just you it’s easy to skip a meal, forego buying a rain jacket - but with kids you have to deliver. I’m assuming most people are in that family category so overspending will happen all the time.
This is one of the many reasons I don't want kids.
The problem with using Covid as an example is because you leave out a lot of important things that happened during this time. Many ppl recieve stimulus checks, ppl had rent and mortgage freezes, more ppl were able to work remote giving them the freedom to live in lower cost areas and many more factors to y ppl were saving. It doesn’t just boil down to “poor” saving habits.
I'm curious how they defined "paycheck-to-paycheck." Similar polls/surveys have respondents saying they loved paycheck to paycheck but they were making contributions to 401k and other retirement accounts.
It feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?
So what I do is buy companies that are doing good things, executing on business plans and then short companies that are missing earnings, it’s as simple as that.
@@georgemuller2329 we’ve been in a rally for the last decade, you just gotta accept not everyone is as knowledgeable in the market to handle the opportunities a crash market presents, and unfortunately for me too, I got in 2019 right before the market’s melting point, I just hope I recover soon enough before retirement. S`tay strong. I think the market will suffer more downtrends before full recovery, esp. with the inflation, hiked interest rate and looming recession bound to happen 2023, you should understand the market is not just finance and valuation, it’s history, it’s market psychology, it’s understanding how the world moves, which is why at this point in time, it’s ideal to work with an Investment-adviser with an unparalleled track record, from first hand experience, I could say they stand a better chance than most of us ever would and it has been reflecting on my portfolio. I made over $850k in net gains this year alone and I’m unbothered about the market outcomes cause I’m certain I’ll make a killing, it’s all perspective guys.
@@haywarddisean2539 Nicely said, I was thinking about going that route too, UA-camrs has been going on about opportunities at stake in this present market and I’d really love to set my portfolio up for whatever is coming 2023, could you recommend this coach that guides you?
@@cruzchristiana991 The coach I use is actually quite known, Emily Louisa Bahr. She has a wide presence on the web, so you can just search her.
@@guesswilson290 Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I save a minimum of 40% as a 30 year old. I've been doing this for about 5 years. Now I have no debt & a 180k net worth.
Nothing but quality and value comes from this channel. I love it.
I appreciate that!
Location location location.... 200k on the Bay Area is like 100k or less in the midwest city.
BnPL success is a clear indication of our addiction to consumerism.
It all just seems out of reach, or my expectations of financial independence are very high.
I am 29, I started making 100k last year, my net worth is about 200k. I was only able to save this amount the last 4 years by living with my family.
With inflation and current interest rates I would barely be able to afford a 130k mortgage. This means if I wanted a decent 200k condo in my area I need 70k down at least.
Assuming 3% inflation, by the time I retire in 35 years I would need about 2.5million dollars to support a 40k life in today's money. This is just on my needs alone.
I've just been depressed lately because becoming financially free by age 40-50 isn't realistic (or safe without a huge nest egg).
I enjoy my job, but unless I make big moves I won't be able to live my "best life"
The utilities cost in your example blew my mind. My utilities on a very modest home (
I share your videos with my family and friends all the time. Thank you for always making these concepts feel doable!
Awesome! Thank you!
Nice video. When looking at the budget though, you left out that most people have to pay something toward their work benefits (e.g. health insurance), so take-home pay might be even less.
I have challenged myself to put away 50% of my monthly income into stock options which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager James Fletcher Brennan who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.
Consistently investing in quality dividend paying companies over the long term is a relatively easy strategy to create generational wealth.
out of curiosity I did read about James Fletcher Brennan on the web.,he has a great resume.
i'm happy there are lots of people doing so well...Love this channel for the transparency
Fucking bots.
Why? Hopefully you aren't missing out on living life while you're still healthy. And did you mean $200k or is $20k your salary. Because if it's $20k you're for sure missing out.
It is not just spending habits it’s school loans and debt. I know this is a personal finance channel and you’re not necessarily ruling out what I’m saying here, but I hope others watching don’t think people just spend their life into immeasurable debt when they’re making alot of money. Usually you had to borrow before getting to those higher wages.
That is the scary part. Some had to have money to access higher wages so they already start with debts they must pay so their higher incomes are thought of as being a response to higher debts too. And for some the cost of living is much more expensive....
@@donaldlyons17 agreed
I also think that in 2020 most people had excess income from the extra unemployment. The few checks did not really make a dent, people used them to pay for debt.
yeah that is true
aside: replacing the income tax with a consumption tax (i.e., FairTax) would encourage greater savings & investment
"If you don't have a networth of $14,000 by 35 that's not when you should be panicking..."
Up until the day I saw this video I wouldn't have ever believed a statement like that. I just turned 29yo and my net worth is way beyond that. If you're 35 and don't have a networth at or above $14,000 then what are you doing with your life? You're probably being scammed somehow.😅
When you say put away money, is that included in 401K, Roth IRA, & Savings? Or just specifically savings
Are we sure that the jump in personal savings in 2020 wasn't due to the stimulus payments? I know I was able to put my stimulus money into savings for awhile until I decided to put it toward an extra payment on the mortgage. That sounds about right for the timing and would make more sense.
I heard the spike was because they changed the laws about moving your money in and out of savings accounts and that made the available money (the metric you’re using) go up a lot. I’m not a finance guru FYI
Great video by Humphrey as always!
ty!!!
is it possible that some are saying paycheck to paycheck AFTER their savings goals are met?
So, 1 thing is, you’re forgetting healthcare. Which is huge in the US
Yes true, this person worked for the government which offered good health insurance included
@@humphrey Fair point.
I am 26 years old and I am currently able to save 65% of my Income. 😀
I've been doing my expense tracking since 2015, and I am well clear on how much I'm spending each category each month and how much I'm saving. Also it would help to understand how much excess spending I can save. With all the figures, it's easy to plan for big purchases and plan for FIRE. With multiple streams of income, and right amount of expense, I can save 12k per month now.
Amazing GTD
My only question is how much apart from putting 20% away for savings, how much “fun” money do you keep for yourself ? $200-400 if that ?
Super interesting video! Makes me wonder about how I can change the path I’m on. Perhaps after saving 6 months of fat emergency expenses, I’ll be free to take more risks with my career. $50k is all I need for that
ty very much for this informative video im 21 making $975 after tax every week and I wanted to know how much I should save so i can spend more confidently
3800 AFTER deductions?! Lol I make 56k and I take home 2600.
Your sister definitely knows what she is doing! Even before the end result I was like damn!!!!!🙌🏾👐🏾