I have gotten to the point at 31 years old with 5 kids. That I don’t need to focus on money so much. Is money important? Yes! Should it control your happiness? No! I had my daughter at 17 years old and have always just tried my hardest for her since then with money. I haven’t been to college but I have managed to provide a good life for my kids and myself. Though there have been so much stress and anxiety. I got divorced 6 years ago (4 kids with my ex wife) and she constantly tells me how I should be paying her more then I already do with child support (it is 50/50 custody). All she can focus on is wanting to take money from me because she sees the “stuff” I have. But what she misses is I have only brought the “stuff” into my life that makes me happy. The example of that is our camping trailer. We love camping as a family! What she also misses is the fact when we got divorced I gave her everything I owned! The only things I had left were 1 bed for my 4 kids (I bought more), my guns, and some paperwork. I had reset my life and found the minimalist in the same month! Since then money isn’t the focus and my happiness is. Though money is part of life. Dying happy without things seems much more appealing.
From my point of view it's always better to have more than enough to eliminate the stress aspect of loosing some money. But NEVER-EVER put money on top of you life values list! The key idea, from my point of view, is to gain momentum with your capital. Because the more money you have the easier it becomes to make more money with money you already have. Like a snowball, you have to put effort to make it at the beginning, than to push it down the hill, but after that the momentum will do all the work, you will only have to watch it grow bigger and bigger. And from that point on you can figure out for yourself what are your core life values, what you want to do with your life and with your money. You can do so much more good in the world with more money that with less. Do not like the attitude where people say that they do not need money, money is the source of all problems and etc. In todays World money is the function/means to do anything. And in terms of yourself - money will not change you it will only make you more do who you are.
As Ramit pointed out the 4% rule is a guideline. I am 70 and retired at 65. As a minimalist, I found I spent in retirement about 80% of my expenses I incurred during my working life. 20% of expenses were job related: gas to and from work, lunches at work, dry cleaning, new clothes, dinner with colleagues, treating myself well because I got a bonus etc. Ramit is correct. I never like to travel or frequently expensive restaurants during my working life, I don’t spend money on such items during retirement. In 5 years of retirement, I have not withdrawn any money from my retirement accounts, and I don’t clip coupons or shop around for cheap gas. I just live off my social security and passive income. My needs were never extravagant. On the healthcare front, I have both Medicare and supplemental insurance which is expensive, but the combination lowers my risk of running out of money in case of a major medical situation. I also never carried any debt throughout my working life.
Ah, the age old question ? If you live simply , you’ll have plenty. I retired at 53. Yes, everyone has a different number …. I understand the 4% rule as a guide. So , pay off bills/ no debt and invest. You have to have some type of plan or the end of your journey will be bumpy.
I follow a modified version of FIRE which means enough is about $700k CAD total for my household to live on 4%. I’m semi-retired at age 34, allowing my retirement savings to mature to that number with conservative investments by my 60s, and until then we will have to work about 1 every 3 years. It’s a nice way to feel retired without having to wait until we reach our FIRE number - everyone does side gigs and passion projects when retired anyway.
1:58 Why would you want people to start living that 'rich' life? Doesn't that set them up to 'needing' more when they retire? Doesn't that also set them up for acquiring too much stuff that they (or their kids) eventually have to get rid of anyway?
Enough money is different for me personally, and my job. For me to survive, I need to be getting around 50k/y. I can pay all of my bills. It'll probably go up to 80k or so when I have kids. I like to live a fairly minimalistic life right now. That might change after getting married and having kids, but for now, I like keeping things simple. But for my job, a chemist, I need between 1M and 2M a year. Chemicals, machinery, all of that costs money. We usually get all of that through grants, but if a scientist can fund their own research, well then they can study whatever they want without bending to any agency (it never happens, scientists are hilariously underpaid). And I'm a physical chemist, so my funding is on the low end. Biochem researchers can get into 10M per year.
Do not like the narrative from @ramitsethi about pushing people into spending more (the comment about "I want them to start living that rich life, even a taste of it, today"). If a person do not wear fancy clothes don't persuade them to do that, they are ok where they are. Everyone has their own journey through life. You are always talking about one of the biggest problems of our society which are "consumerism", "keeping up with the Jones" and "fitting in". And somehow in this video you allow your co-host to do completely opposite and do not even disagree with him. It's not about the lifestyle that you want it's about your core values (foundation values) that you have. Follow them and the rights lifestyle for you will immerse naturally without the need to think about it.
I don't think Ramit is telling people to spend money on things they don't need, but to spend money on things they value. I've heard other podcasts with him saying this, that's it's not about things, but spending money on what truly gives you value. He also goes to say spending on a few nice things (jacket for example) and keeping it for a long time because it is better quality, similar to what the minimalists teach. Ramit just wants people to figure out what it is they're saving for. It's all a balancing act.
@@GentleBrawl Exactly what I’ve heard also from several podcasts and ITW articles. He always talks about conscious spending, about finding 1 to 3 areas that matter most in terms of joy and fulfillment, and be brutally frugal on the rest (like him having the same computer or car for over 10 years because he does not care, on the other hand he is extravagant on clothes, business class for more than 4-hr flight and convenience).
How much money is enough for you?
I have gotten to the point at 31 years old with 5 kids. That I don’t need to focus on money so much. Is money important? Yes! Should it control your happiness? No! I had my daughter at 17 years old and have always just tried my hardest for her since then with money. I haven’t been to college but I have managed to provide a good life for my kids and myself. Though there have been so much stress and anxiety. I got divorced 6 years ago (4 kids with my ex wife) and she constantly tells me how I should be paying her more then I already do with child support (it is 50/50 custody). All she can focus on is wanting to take money from me because she sees the “stuff” I have. But what she misses is I have only brought the “stuff” into my life that makes me happy. The example of that is our camping trailer. We love camping as a family! What she also misses is the fact when we got divorced I gave her everything I owned! The only things I had left were 1 bed for my 4 kids (I bought more), my guns, and some paperwork. I had reset my life and found the minimalist in the same month! Since then money isn’t the focus and my happiness is. Though money is part of life. Dying happy without things seems much more appealing.
From my point of view it's always better to have more than enough to eliminate the stress aspect of loosing some money. But NEVER-EVER put money on top of you life values list!
The key idea, from my point of view, is to gain momentum with your capital. Because the more money you have the easier it becomes to make more money with money you already have. Like a snowball, you have to put effort to make it at the beginning, than to push it down the hill, but after that the momentum will do all the work, you will only have to watch it grow bigger and bigger.
And from that point on you can figure out for yourself what are your core life values, what you want to do with your life and with your money.
You can do so much more good in the world with more money that with less.
Do not like the attitude where people say that they do not need money, money is the source of all problems and etc. In todays World money is the function/means to do anything. And in terms of yourself - money will not change you it will only make you more do who you are.
As Ramit pointed out the 4% rule is a guideline. I am 70 and retired at 65. As a minimalist, I found I spent in retirement about 80% of my expenses I incurred during my working life. 20% of expenses were job related: gas to and from work, lunches at work, dry cleaning, new clothes, dinner with colleagues, treating myself well because I got a bonus etc. Ramit is correct. I never like to travel or frequently expensive restaurants during my working life, I don’t spend money on such items during retirement. In 5 years of retirement, I have not withdrawn any money from my retirement accounts, and I don’t clip coupons or shop around for cheap gas. I just live off my social security and passive income. My needs were never extravagant. On the healthcare front, I have both Medicare and supplemental insurance which is expensive, but the combination lowers my risk of running out of money in case of a major medical situation. I also never carried any debt throughout my working life.
WOW, simply impressive, thank you for sharing. My goal is to retire young at 50 or 55.
A big factor is “is your house paid off” when you retire. This saves anywhere from $600 and up
Ah, the age old question ? If you live simply , you’ll have plenty. I retired at 53. Yes, everyone has a different number …. I understand the 4% rule as a guide. So , pay off bills/ no debt and invest. You have to have some type of plan or the end of your journey will be bumpy.
How did you plan for bumpy situations?
I follow a modified version of FIRE which means enough is about $700k CAD total for my household to live on 4%. I’m semi-retired at age 34, allowing my retirement savings to mature to that number with conservative investments by my 60s, and until then we will have to work about 1 every 3 years. It’s a nice way to feel retired without having to wait until we reach our FIRE number - everyone does side gigs and passion projects when retired anyway.
1:58 Why would you want people to start living that 'rich' life? Doesn't that set them up to 'needing' more when they retire? Doesn't that also set them up for acquiring too much stuff that they (or their kids) eventually have to get rid of anyway?
I think he’s referring to his own saying “live your rich life” which means living your life happily with your wants and needs.
That's assuming future is the same as past which won't be
Enough money is different for me personally, and my job.
For me to survive, I need to be getting around 50k/y. I can pay all of my bills. It'll probably go up to 80k or so when I have kids. I like to live a fairly minimalistic life right now. That might change after getting married and having kids, but for now, I like keeping things simple.
But for my job, a chemist, I need between 1M and 2M a year. Chemicals, machinery, all of that costs money. We usually get all of that through grants, but if a scientist can fund their own research, well then they can study whatever they want without bending to any agency (it never happens, scientists are hilariously underpaid). And I'm a physical chemist, so my funding is on the low end. Biochem researchers can get into 10M per year.
Well you are not self employed. You work for a lab or university. Or are you going to turn your garage over to a lab, lol.
Interesting if you say from US. In Brazil we think there you give value and really support scientists 🤔
Consider overseas living.
Well, in Marin County? 4 Million
Do not like the narrative from @ramitsethi about pushing people into spending more (the comment about "I want them to start living that rich life, even a taste of it, today").
If a person do not wear fancy clothes don't persuade them to do that, they are ok where they are. Everyone has their own journey through life.
You are always talking about one of the biggest problems of our society which are "consumerism", "keeping up with the Jones" and "fitting in". And somehow in this video you allow your co-host to do completely opposite and do not even disagree with him.
It's not about the lifestyle that you want it's about your core values (foundation values) that you have. Follow them and the rights lifestyle for you will immerse naturally without the need to think about it.
I don't think Ramit is telling people to spend money on things they don't need, but to spend money on things they value.
I've heard other podcasts with him saying this, that's it's not about things, but spending money on what truly gives you value. He also goes to say spending on a few nice things (jacket for example) and keeping it for a long time because it is better quality, similar to what the minimalists teach.
Ramit just wants people to figure out what it is they're saving for. It's all a balancing act.
@@GentleBrawl Exactly what I’ve heard also from several podcasts and ITW articles. He always talks about conscious spending, about finding 1 to 3 areas that matter most in terms of joy and fulfillment, and be brutally frugal on the rest (like him having the same computer or car for over 10 years because he does not care, on the other hand he is extravagant on clothes, business class for more than 4-hr flight and convenience).
You want money hum?