$100,000 Salary = BROKE (here's why)

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  • เผยแพร่เมื่อ 27 ธ.ค. 2024

ความคิดเห็น • 884

  • @johnkurian4529
    @johnkurian4529 5 ปีที่แล้ว +832

    Honestly 100,000 is a great salary....the problem is most people raise their standard of living when they make more money rather than maintaining their previous standard of living and investing the new money they are now making to retire sooner.

    • @randallmiller7376
      @randallmiller7376 5 ปีที่แล้ว +48

      This is hitting the nail on the head more so than anything else said here.

    • @InfiniteQuest86
      @InfiniteQuest86 5 ปีที่แล้ว +16

      This was for the average of all things, not above average. I do think $500 car payment is extreme, but the housing cost was quite low, so it probably balances to about average. He was pointing out that you couldn't even raise your standard of living if you wanted to on $100,000 salary. I agree. I've lived it. I've always been very frugal and a saver, but it is so hard to live off only $100k per year. It's essentially paycheck to paycheck if you want to live with dignity as a real adult and not have roommates and such.

    • @badaceblackbelt
      @badaceblackbelt 5 ปีที่แล้ว +22

      Exactly this. I was making about $45k and got a new job where I'm making about 88k before 401k matches and I am living close to the same lifestyle but am able to put 8% into retirement plus another 12k into investing and another 18k towards saving for a house downpayment per year. And that doesn't even factor in my wife's income. I did buy a used car last year though but paid cash for it to avoid payments.

    • @badaceblackbelt
      @badaceblackbelt 5 ปีที่แล้ว +5

      @@InfiniteQuest86 Only in HCOL areas. It's fairly easy to survive on 100k even in MCOL areas and still look like your ballin.

    • @wreckdiver61
      @wreckdiver61 5 ปีที่แล้ว +1

      That’s the plan you want a better life if you make more money I’m not driving a $200 car making 200,000 a year so you buy a $50,000 car or 2 and so on.

  • @darkale658
    @darkale658 3 ปีที่แล้ว +62

    Being able to have a $100 date night every week (or a luxurious date night once a month), a $3k vacation, and still being able to have both savings and retirement contribution is not "broke".

  • @MyfamilyJenkins
    @MyfamilyJenkins 5 ปีที่แล้ว +259

    $100,000=broke means poor management for me

    • @poke-holo-sports
      @poke-holo-sports 5 ปีที่แล้ว

      True but you only live once and I have a Mercedes and own a home.

    • @shoumikchakraborty2529
      @shoumikchakraborty2529 4 ปีที่แล้ว +5

      @@poke-holo-sports what happens if you loose your job or have to move to a job with lower paying how will you pay off your mortgages.
      Mortgages are traps I have been in the 100+ salary range for past 3 years and still did not buy a car. I don’t rent an expensive apartment it brought down my expenses by 20-30% instead I invested the money and it’s growing and will buy my car when I feel I have enough.
      How I know it, when I have enough money to sustain my current lifestyle for 5 years without any job that’s when I will start buying luxury items.

    • @dennisp8520
      @dennisp8520 4 ปีที่แล้ว +1

      @@shoumikchakraborty2529 I wouldn't call buying a home a luxury item and that is actually more of a investment than renting a apartment. It's actually cheaper than renting. Some form of income stability is important to plan out life to a certain degree. If you have a emergency fund where you could got 6 months to 1 year without income that's plenty 5years is excessive and means you could of been doing something better with that money like putting it into a rother ira or your 401k to grow.

    • @shoumikchakraborty2529
      @shoumikchakraborty2529 4 ปีที่แล้ว +3

      @@dennisp8520 for me house is a liability, not Luxury for example I have a house, and I have to pay property tax and maintenance for the house so money is moving out if I loose my job in the pandemic I can’t pay the mortgage if it’s a big house and huge loan it’s hard for me to meet the end.
      Buying an expensive car is luxury.
      I am not in US, But I get your point.
      I feel 401K forces u to give out a huge percentage to the investment funds as brokerage.
      For example you invest 1000$ today if you know the power of compounding after 30 years you end up getting 28 times your investment if you are putting it all in 401K and other investment firms, but if you do it correctly you will end up 39 times of the original money.
      What I am trying to say is to grow wealth/assets and not liabilities
      Turly speaking it took some time for me to understand all this concepts for the first time.
      When you have money it’s hard to resist the temptations.

    • @diapersFTMFW11
      @diapersFTMFW11 3 ปีที่แล้ว

      @@dennisp8520 A house is a liability until it is fully paid. You own 0% of it until it is 100% paid. Not only that but anything repairs needed on the house adds liability on top of that liability. Also with the falling birthrate in the western world houses will not continue to gain value long term and it may fall flat or plunge as population stays the same or decreases. Not to mention the astronomical interest amount you will pay whether you have a 15yr or 30yr mortgage. This is why people rent

  • @cddagr
    @cddagr 4 ปีที่แล้ว +82

    If earning $100,000 is broke, I've been living under a bridge all my life. 😅😂😂

  • @davidjym
    @davidjym 5 ปีที่แล้ว +184

    So true, it's not about how much you make, but how much you $$$$$$$ keep .........

    • @adobotravels
      @adobotravels 5 ปีที่แล้ว +4

      DAVID Y yeah man and 3000 on vacations is way too much. In Southeast Asia, flight tickets are about $60 and good quality hostels are like $11 a night ! It’s all about leveraging hahahah

    • @superMMAfreak99
      @superMMAfreak99 5 ปีที่แล้ว +2

      Rich dad poor dad

    • @Christinathemasterbarber
      @Christinathemasterbarber 3 ปีที่แล้ว +1

      Get rid of the car note, Get a regular car and pay in cash

    • @davidjym
      @davidjym 3 ปีที่แล้ว

      Cash is king

  • @MrsSimoneHill
    @MrsSimoneHill 5 ปีที่แล้ว +307

    Give me 100k and watch me live off of 40K

    • @matthewclevenger197
      @matthewclevenger197 5 ปีที่แล้ว +5

      Simone Miller for real!!!!!!

    • @NickOloteo
      @NickOloteo 5 ปีที่แล้ว +20

      lo, watch me live off 15k

    • @webdevelopertimofeimihhail3502
      @webdevelopertimofeimihhail3502 5 ปีที่แล้ว +8

      Give me 100k and watch me live off of 4k

    • @dj912sent9
      @dj912sent9 5 ปีที่แล้ว

      I don’t believe youTimofei Mihhailo

    • @webdevelopertimofeimihhail3502
      @webdevelopertimofeimihhail3502 5 ปีที่แล้ว +7

      Dj 912 Sent that is what I am doing right now :) not in America of course. But in small city in Estonia it is quite simple) people couple years back lived here for 300 a month, that was minimal salary) minimum living price here is 160, means that if you do less that that, then government will help you with money.
      I did even manage to visit 11 countries last year with only 4K spending through whole year ahahah I traveled like 135 days lol

  • @CommandoMaster
    @CommandoMaster 5 ปีที่แล้ว +99

    Making 100k doesn't make you wealthy, but it's about saving and investing that will.

  • @beaviswealth
    @beaviswealth 5 ปีที่แล้ว +71

    I remember this concept from Rich Dad, Poor Dad. Higher incomes often lead to higher expenses... for a lot of people the ratio doesn't change and they can never become financially free. Awesome video, you nailed it!

    • @matthewclevenger197
      @matthewclevenger197 5 ปีที่แล้ว +4

      Brandon Beavis Investing completely agree. We don’t have an earnings issue as much as We have a spending issue.

    • @ReaveIdono
      @ReaveIdono 5 ปีที่แล้ว +2

      @@matthewclevenger197 Spending issue is what I'm trying to tell people about now. They just dont listen....

    • @BrMark-cu9ih
      @BrMark-cu9ih 5 ปีที่แล้ว +2

      An education system should teach that....but that would never 🚫 be “allowed” “the system” requires financially uneducated debt slaves, anyone else is nearly a freak/rebel....😉

    • @matthewclevenger197
      @matthewclevenger197 5 ปีที่แล้ว

      Man. It truly is sad. Especially the rising debt we are seeing for those in retirement. That concept is unfathomable to me as well. Fixed income spending above that in retirement is pushing yourself into the corner

  • @ECrespo175
    @ECrespo175 5 ปีที่แล้ว +27

    My base salary is 6k away from 100. After my 10% 401k contribution and other PPO, insurance deductions my take home is 75k pre taxes. You factor taxes into the mix and 100k isn’t what I thought it would be when I was earning 40k. You can be frugal all you want but the reality hits home when 100k gets chopped down to 62k-65k take home.

    • @adriannathegreat9890
      @adriannathegreat9890 3 ปีที่แล้ว +6

      62k take home is a good salary unless you're living in an expensive town.

    • @pozloadescobar
      @pozloadescobar 3 ปีที่แล้ว +6

      I feel like we've been programmed to think $100k makes one rich. In reality, it's "just" 2.5 times the median personal income. It's comfortable but certainly not rich! Those folks with the $200k, $300k, $1M incomes are the ones living like kings

    • @ECrespo175
      @ECrespo175 3 ปีที่แล้ว

      @@adriannathegreat9890 I’m in New Jersey

    • @vontrae
      @vontrae 2 ปีที่แล้ว +3

      Let’s be real, it’s the taxes that really eat us alive at this income level 😭 $25k in taxes is literally a car lol

    • @HareshE
      @HareshE ปีที่แล้ว

      401k is retirement money, so you are already saving up for retirement, and then you have to do personal savings if you hav any further goals, i guess that's a good catch?

  • @minhn1791
    @minhn1791 3 ปีที่แล้ว +2

    Even with your horrible money management ($530 for a car payment!?) your able to save $400 in a savings, $250 in vacation, and $740 left over with lots of room to save money. I don’t see how anyone is “broke” saving $1390 a month with room to improve.

  • @rsasllc-houseflipping6917
    @rsasllc-houseflipping6917 5 ปีที่แล้ว +64

    Depends on where you live. $100,000 is a comfortable middle class life in Alabama for a family of 3. My brother lives in California and 100k is enough for 1 person, not a family.

    • @obiclone
      @obiclone 5 ปีที่แล้ว +3

      RSAS LLC - House Flipping San Francisco, CA $100K is hard for 1 person
      Average house is 4K month mortgage

    • @brentshuffler1234
      @brentshuffler1234 5 ปีที่แล้ว

      ​@@obiclone, can you share what the income taxes, statutory deductions, and, hence, net pay would be on U.S.$100,000 per year personal income in California versus Alabama versus elsewhere?

    • @brentshuffler1234
      @brentshuffler1234 5 ปีที่แล้ว

      RSAS LLC, can you share what the income taxes, statutory deductions, and, hence, net pay would be on U.S.$100,000 per year personal income in California versus Alabama versus elsewhere?

    • @obiclone
      @obiclone 5 ปีที่แล้ว +1

      Brent Shuffler for instance in San Francisco, real estate is so expensive that so very few people can afford even the
      downpayment to buy a house, so most people rent.
      When you rent, you do not get a deduction for the rent.
      Renting a house will run you about $4,000 a month.
      Gas, is also around $5 per gallon in San Francisco.
      So the monthly on gas is more like $500 for me.
      Also, California state tax, which is in addition to the federal tax is about 10%.
      The rest of the numbers are basically the same everywhere else.
      Traffic is also far worse here.
      But the other issue is that here you also have to pay to park your car everywhere you go.
      The meters will cost you 25 cents just for 5 minutes of parking.
      $3 per hour.
      That’s a conservative $200 a month for parking fees.
      So, in SF you need to add an additional $3,300 per month in expenses to what is in the chart of this video.
      But, because of the 10% state tax, the take-home income on $100,000 per year is $5116 per month rather than the $5,950 in the video here.
      Here in SF, unless you live with family or have a room-mate shared rental situation.
      100K per year is worse than broke.
      You basically need about $150K to break even.
      In a place like Alábama you wouldn’t have that additional $3,300 per month in expenses.
      Also, real estate is much lower, so anyone making $100,000 a year will buy a house, and get the interest rate deductions on the home.
      (Or probably be able to pay the house off early and not even have a mortgage payment at all)

    • @rsasllc-houseflipping6917
      @rsasllc-houseflipping6917 5 ปีที่แล้ว

      @@brentshuffler1234 Sorry I can't. I'm a landlord and deduct everything so my example would be very different from the typical W-2 employee.

  • @DanielIles
    @DanielIles 5 ปีที่แล้ว +63

    As someone who turned down a corporate accounting position for running a small business. This calculation is COMPLETELY true. I help small business owners run their auto shops and construction companies making more than doctors and lawyers. Keep it up Ryan!

    • @BlakeTedKord
      @BlakeTedKord 5 ปีที่แล้ว +2

      Daniel Iles What do you do exactly to help auto shops and construction companies for instance Dan?
      Like some example of your duties...that brings in your revenue

  • @pault4749
    @pault4749 5 ปีที่แล้ว +55

    You say avg this and avg that, but you use tax rates from NYC?

    • @randyc9356
      @randyc9356 5 ปีที่แล้ว +5

      No, its New York State, not New York City. Plus, I found the website he used. smartasset.com

    • @andreiolefyrenko2046
      @andreiolefyrenko2046 5 ปีที่แล้ว +4

      @@randyc9356 It would've been a lot worse for NYC. Given that renting a studio in a more-less nice area starts at $2200. If your job doesnt pay health and you have a car or a motorcycle with ridiculous insurance in the city. You're screwed.

  • @OrlyDelgadillo
    @OrlyDelgadillo 5 ปีที่แล้ว +32

    FRUGAL LIFE that's the answer!!! Last year I made 120K and now I have debts!! Cos I spent more in crap that I don't need in order to impress people I hate..EXCELENT CLASS AS ALWAYS... I'M ALWAYS WAITING FOR YOUR NEXT VIDEO...Blessings

    • @nabilyasin2088
      @nabilyasin2088 4 ปีที่แล้ว +2

      Love the honesty, only way is up

  • @greggatsby39
    @greggatsby39 5 ปีที่แล้ว +38

    It honestly depends where you live 100k is tons in Montana, it’s nothing in Manhattan.

    • @dradexx
      @dradexx 3 ปีที่แล้ว

      It doesn’t depend where you live because jobs in Montana won’t pay you as well as jobs in California. Your salary is dictated by market wage.

    • @dradexx
      @dradexx 3 ปีที่แล้ว

      This is a cliche thing to say but it’s faulty because the high paying jobs take into account at least your taxe rate when they dictate your salary.

  • @MarlinRoth
    @MarlinRoth 5 ปีที่แล้ว +50

    Lol the taxes for 100k salary is basically my current wage

    • @16krez1
      @16krez1 4 ปีที่แล้ว +1

      Big oof

    • @QueenD75172
      @QueenD75172 3 ปีที่แล้ว

      I am just hitting this type of income and literally every time I look at my deductions (I live in Germany, making Euros and we have a LOT of deductions) I think "wow, I used to make what they deduct". Its bitter sweet... Hang in there. I am 45 yrs old. Took me some time to get here.

    • @MarlinRoth
      @MarlinRoth 3 ปีที่แล้ว +2

      @@QueenD75172 thanks for the encouragement, and congratulations on your success!

    • @dhtj3618
      @dhtj3618 3 ปีที่แล้ว

      Cause you live in area that doesn't tax's as hard. New york as a high tax rate. Taxes florida and other areas tax much less. This guy is going by new york cost of living lol

    • @SinemaSurf
      @SinemaSurf 3 ปีที่แล้ว

      Taxes for your salary is more than my wage ($5k in middle east)

  • @Keon994
    @Keon994 5 ปีที่แล้ว +45

    Oh man I'm only making 40k a year. At least I have no debts, don't pay rent, live with my parents and save and invest everything.

    • @drewv5119
      @drewv5119 5 ปีที่แล้ว +6

      Stay debt free and live with your parents as long as you can and stockpile cash! Smart

    • @djrajo9014
      @djrajo9014 5 ปีที่แล้ว

      Drew V lmao what that’s not always the best option I’m going to med school to become a pharmacist ya I’m going in student debt but i will be able to pay it off in 2 years since my profession makes about 146k median salary .

    • @rodrigorodriguez2299
      @rodrigorodriguez2299 5 ปีที่แล้ว +4

      Remember to take care of your parents and don’t leave them behind when your a millionaire

    • @aahsimovieprojects
      @aahsimovieprojects 5 ปีที่แล้ว +1

      @@djrajo9014 Medical school is to become a doctor. I believe you are referring to pharmacy school.

    • @djrajo9014
      @djrajo9014 5 ปีที่แล้ว

      Andrew being a pharmacist is a doctor and yes you are right but technically it’s basically the same thing .

  • @Deus_Intus
    @Deus_Intus 5 ปีที่แล้ว +10

    Married with 4 kids, single income (wife works as stay at home mom and we homeschool). Grossed just over $97k last year (in Montana, USA) and I must say I totally agree with your assessment Ryan. Even with average stuff (even average housing here is starts around $1200-1400 a month for mortgage payments) it is still paycheck to paycheck mostly. Just enough to keep you alive, but not much more.

  • @jeremycook1242
    @jeremycook1242 5 ปีที่แล้ว +14

    Don’t listen to this guy 100k is a great salary. Don’t you already cable in this plan so don’t sign up for the extras. Use the extra $800 to pay off you smallest debt when that one is gone you will $1000-1100 extra to pay off the next smallest debt. Before you know it your out of debt and have about $2500-3000 per month to in toward retirement.
    Rich and wealthy are not the same thing. Owning the nicest cars and house does not mean your rich. Usually it means your are in debt up to your eyeballs. Pay your debt off and pay cash for everything you can.

    • @16krez1
      @16krez1 4 ปีที่แล้ว

      Student loan is a bitch

  • @codywaldron2486
    @codywaldron2486 4 ปีที่แล้ว +19

    If you’re broke living on 6 figures, you need to do some SERIOUS soul-searching.

  • @keykey7394
    @keykey7394 5 ปีที่แล้ว +2

    If you make $100,000 a year, why do you have a car payment?! Just buy a car for about $5,000. You can get a very nice, dependable car for $5, 000

  • @jssilverwolf3225
    @jssilverwolf3225 5 ปีที่แล้ว +4

    At $100k/yr i'd be able to have over 2k/month left over based on that list of expenses. Nobody needs a $530 car payment, or to go on vacation.

  • @Viccano85
    @Viccano85 5 ปีที่แล้ว +56

    You can easily cut some items in this list and save 2000$ so I disagree this salary as being “broke”

    • @badaceblackbelt
      @badaceblackbelt 5 ปีที่แล้ว +11

      FR. A 530 car payment is a merc or BMW. That's not broke. My wife's parents barely survive on less than 15k a year. That's broke.

    • @Markk8ththe3rd
      @Markk8ththe3rd 5 ปีที่แล้ว +12

      Yea it sounds like somebody don’t know how to budget they’re money😂 I definitely disagree with this too

    • @stevengtv
      @stevengtv 5 ปีที่แล้ว +1

      You can cut the car, which will then have cheaper insurance, you can cut eating out/groceries you can be healthy for less, cut out cable, get a roommate, cut utilities, and so on

    • @frandoherty
      @frandoherty 5 ปีที่แล้ว +1

      Kevin Devers
      530 payment is the very of low end for bmw. Try closer to 800$-1000$ I’m saying this bc i have had a beemer for 3 years so I know

    • @frandoherty
      @frandoherty 5 ปีที่แล้ว

      Kevin Devers not to mention car insurance.... through the roof for a beemer... 500$ is more like for an average car

  • @nelsoncopo7529
    @nelsoncopo7529 2 ปีที่แล้ว +1

    2022 this aged horrendously with inflation and mortgage rates now.

  • @jonquebyrd3105
    @jonquebyrd3105 5 ปีที่แล้ว +1

    Well my car is paid for cash so thats $550 in my pocket, my health insurance is 140 so thats $300 in my pocket and i have no student loans so thats $390 in my pocket, so thats $1,240.00 in my pockets monthly which equals to 14,880 a year in my pocket.

  • @calvinraab8798
    @calvinraab8798 5 ปีที่แล้ว +15

    It's not how much you make it's how you spend your money that really makes or breaks your wealth.

  • @bkinouye
    @bkinouye 5 ปีที่แล้ว +17

    LOL, that mortgage + tax + insurance is ridiculously low for California. Mine is $2600, and I'm probably way below the median.

  • @oopsisolditagain4191
    @oopsisolditagain4191 5 ปีที่แล้ว +2

    Get your student loan paid off and pay cash for your car... now you have 1700 left over... and you've already put retirement and every other major thing in the equation... that's good money

  • @adobotravels
    @adobotravels 5 ปีที่แล้ว +4

    Easy solution: cut down all the unnecessary crap
    Car - you save more on public transport and even help the world from preventing more carbon emission
    You also save by not having car insurance since you wouldn’t have one anyway. This works if you live in nyc Seattle dc Portland Chicago or cities with good public transport
    Gym- you don’t really need this you can lose calories from Public transport your house to bus to work
    Netflix - you can go to relative or friend’s house
    Clothes - wear simple clothing, you don’t need to impress people who don’t care, your wallet will thank you later
    Dates -
    If you can cook, why not just invite them over and cook the meal. You will save time and money wasted on waiting for the waiter
    Not sure if anyone would read my advice I’m only 23 but saving a Lot of money gave me the freedom to travel to 30 different countries at my age :)

    • @carultch
      @carultch 5 ปีที่แล้ว

      "Why not invite them over and cook the meal?" Yeah, good luck getting to meet your date somewhere that isn't a public place.

  • @kieranbird5869
    @kieranbird5869 5 ปีที่แล้ว +1

    $530 per month for a car, $150 monthly for a phone. $400 on date nights after already spending $500 on groceries. Is this really average spendings or luxury spending?

  • @Samsaraindo
    @Samsaraindo 4 ปีที่แล้ว +3

    The expenses that could be cut down are:
    1) 530 car payment. Instead, buy cheaper used car or pay off car with cash.
    2) 400 date night. This could be lowered to 200 a month. Chick has gotta pay half.
    3) 3000 vacation. This could be lowered to 2000 or less. You could pay 1000 of it just using credit card points you accumulate through the year.
    4) 390 student loans. You gotta pay this off and perhaps pay less into retirement until its paid off.
    Feasibily, you could save another 500 to 600 a month by cutting or slashing the above, allowing you to save closer to 1500 a month.
    But otherwise, yes these expenses are real and somewhat accurate. Scary that 100k isn't actually much now.

  • @nobodyinparticular983
    @nobodyinparticular983 5 ปีที่แล้ว +1

    I have never spent $3000 on a vacation. In fact, I take 2-3 vacations per year and never spent $3000 on vacations in a year. We just take advantage of the national park system and go to popular places in the off season. Never dropped $100 on a date night. My mortgage is less than $450 per month. Your numbers certainly sound reasonable. It's just that people tend to adjust their expectations for their standards of living based on income. Of course if I had $100,000 a year to work with, I'd probably have a house that didn't have rotting floors and maybe I'd buy a car with fewer than a quarter million miles on the odometer. But at $800 per month, my health insurance and medical expenses eat up a third of my gross income. That's why I'm broke. Since my learning disabilities and income prevevented me from getting the education necessary to earn six figures, I learned how to live well with what I can earn. I can't imagine, since I can manage on roughly a third of it, being broke with $100,000 per year coming in unless I was living somewhere like Boston or San Diego.

  • @chriscarvalho1786
    @chriscarvalho1786 5 ปีที่แล้ว +23

    The problem is that some people are not willing to live below their means. I was investing 75% of my pay into the Stock Market and making less than $100k per year. Now my portfolio alone is bringing in $100k+ on average 😁👌

  • @ScentJunkie03
    @ScentJunkie03 5 ปีที่แล้ว +1

    I don't know about you guys, but almost every one of the expenses listed costs much less per month for me. My car payment is $360, car insurance is $50, cell phone is $80, groceries are $300, gas is $80, utilities are $180, etc. and I have no student loans (paid them off earlier this year). I added it up, and I'd have $1800 more than Ryan mentions in this video. It just shows that it depends on where you live and how much you spend on certain things in your life.

  • @LesterDiaz
    @LesterDiaz 5 ปีที่แล้ว +32

    Have to agree, last year I achieved $100k a year online and after taxes, paying my own insurance, etc..is not as much money as I thought. Luckily I live a very frugal life and don’t spend lots of money on useless crap

    • @BlakeTedKord
      @BlakeTedKord 5 ปีที่แล้ว

      Lester Diaz What’s up Lester. 👋

    • @kasarachipeter8816
      @kasarachipeter8816 5 ปีที่แล้ว

      Pls. Teach me the online business that made u a lot of that amount ,even any that can give me quarter of that I will be grateful. . Am ready to pay for the info.Pls, help a bro.

    • @BlakeTedKord
      @BlakeTedKord 5 ปีที่แล้ว

      @@agentsmith2798 What do you mean "incorporate your online activity with an offshore company"? Like what does one do exactly with what you're saying here?

  • @johnscott353
    @johnscott353 5 ปีที่แล้ว +1

    This way of thinking is why 100k is broke. You dont accrue all this debt just expecting monthly payments to be the norm. If you didnt have a $530 a month car payment you'd have another $530 to pay off your student loans...

  • @DnG100
    @DnG100 5 ปีที่แล้ว +12

    This is so true! If you see where I live you would question if we really make 100k/yr. Forgot to mention child support, phones for the kids, it just all adds up. Cant even think about vacation for another few years. We’re literally living paycheck to paycheck on 100k.

    • @olyl3859
      @olyl3859 2 ปีที่แล้ว +1

      1 salary of $100 000/year = you are richer then 90% of Americans

  • @thatplantguy
    @thatplantguy ปีที่แล้ว +2

    Made $80k last year, saved $32k, invested it all. It’s not that difficult. Just don’t waste money on shit you don’t need, trying to impress people you don’t care about.

    • @scottkint
      @scottkint ปีที่แล้ว

      So you only spend $2000 a month….. as Kevin McAllister from Home alone said; “I don’t think so”. I think you assume people will not do the math.

    • @thatplantguy
      @thatplantguy ปีที่แล้ว

      @@scottkint I was a grad student for too long. Once you learn to live on nothing, it’s hard to break the habit. Having a partner to share costs is huge. Plus, no kids, no mortgage (rent) also makes it possible.

  • @hbarudi
    @hbarudi 5 ปีที่แล้ว +11

    Unless it is hybrid or electric, don't buy a new car on a loan. Then rent some cheap apartment while building a savings account, then you can spend on things later.

  • @Brunark
    @Brunark 5 ปีที่แล้ว +43

    Glad I'm below average for all of these expenses lol. 6 figure salary would be luxury to me compared to now.

  • @skinsfan1980
    @skinsfan1980 5 ปีที่แล้ว +134

    Awesome video. However you left out the biggest expense......kids!!!

    • @javigo78
      @javigo78 5 ปีที่แล้ว +11

      This was an example for a single person....wow!

    • @TigerTT
      @TigerTT 5 ปีที่แล้ว +8

      That will be an extra $200k lol

    • @MrDonny27
      @MrDonny27 5 ปีที่แล้ว +5

      Yea child support....

    • @rons.6683
      @rons.6683 5 ปีที่แล้ว +3

      Chris Wood kids!? Ouch.

    • @16krez1
      @16krez1 4 ปีที่แล้ว

      @Steven Roy I would usually devote my savings to cover those kind of costs like home maintenance and vehicle repairs and use whats left after puting half in savings to buy furniture, computers, a new pet, ect. Oh and for regular pet expensives I would set a budget of 100-ish per month for food and toys. Assuming that I have one cat or something

  • @vsolcar3696
    @vsolcar3696 5 ปีที่แล้ว +20

    Next video: "A million dollars a year = broke (here is how)(gone sexual)"

  • @MisterMike101
    @MisterMike101 5 ปีที่แล้ว +1

    Having less than 100$ in your pocket for 5 months is BROKE now think about that shit!

  • @nedzadcavka8741
    @nedzadcavka8741 5 ปีที่แล้ว +1

    just goes to show you 500 something dollars every month for a car payment is stupid.
    buy a car with cash and never have a car payment is the way to go.
    also - you don't really need to spend $400 on date nights every month, that's excessive. Spending $1000 a month on date night and your car is what's killing that hypothetical person's wealth.

  • @keirak2545
    @keirak2545 5 ปีที่แล้ว +11

    All these people saying can't live a respectable lifestyle on 100k and here I am making not even a quarter of that..

    • @16krez1
      @16krez1 4 ปีที่แล้ว

      Wheres my frugal gang at?? Even if I was making like 280k a year after tax, I would only change my lifestyle a bit. A more expensive house, car and an increased budget on clothes, grocerys, and whatever crap. My point is I would still cringe when I buy an 80 dollar T shirt. 30 dollars I could manage.

    • @souhridyobose4362
      @souhridyobose4362 4 ปีที่แล้ว

      @@16krez1 same.

  • @MrDonny27
    @MrDonny27 5 ปีที่แล้ว +30

    I made 95k for year and I'm still broke after taxes, and child support. But contribute 16k in my 401k..

  • @randytaylor4766
    @randytaylor4766 5 ปีที่แล้ว +8

    I'm a 20 year retired Air Force guy: Master's degree paid in full, little to no health insurance costs, and I have 3000/month pension (started pension at age 39). With the education and skills I received in the military, I was able to land a salary of over 100k living in Nebraska of all places! The Air Force treated me well. I highly advise it as a possible path to any young person unsure of a direction. Granted, I did a few stints overseas but they came with many fond memories and friendships. Just an idea...

    • @deezy6867
      @deezy6867 5 ปีที่แล้ว

      I've been thinking about joining the Air Force lately before I get too old. I'm currently 28 and I have a bachelor's in nursing. I haven't started working in the nursing field yet though. Any advice that you could give me with making my decision would be greatly appreciated.

    • @peterharrison5833
      @peterharrison5833 4 ปีที่แล้ว

      @@deezy6867 ---Shondez----I know I'm waaaay late to this blog. But.....if you're health is good (you'll have to pass a physical) and if you're willing to sign up for 4 years, the AF will take you in a heartbeat. They're always looking for good medical personnel. You'll be an officer, so the pay rate is higher. You can look the pay charts up online, and see what people make for each promotion and for every year they stay in. I did 27 myself. I highly recommend it.

  • @minhn1791
    @minhn1791 3 ปีที่แล้ว +1

    If your financial irresponsible, you will be broke no matter how much you make. People that won millions from the lottery even become broke. That being said 100k a year is like what top 30% of all American salaries which I would definitely consider rich. 30 years at this job will get you over 2million after taxes. The video is just an example to getting yourself into too much debt

  • @stevesilverman3213
    @stevesilverman3213 3 ปีที่แล้ว +5

    This guy has never been "broke". Video is informative for an introductory lesson on budgeting at least. However, if you can afford $400/month for savings, date nights, retirement fund, etc... you are far from broke. Don't less a$$ clowns tell you otherwise. Happiness is a better measure of success.

  • @michaelscott6216
    @michaelscott6216 5 ปีที่แล้ว +1

    You shouldn’t have added the $440 for health insurance. If you’re salary is $100k than your health insurance is probably a free benefit.

  • @pulzone05
    @pulzone05 2 ปีที่แล้ว +2

    Yeah $100,000 a year is even worse now with how inflation is today lmao. Money is a strong word…

  • @RealLifeMoney
    @RealLifeMoney 5 ปีที่แล้ว +16

    That is super crazy! I was looking into houses and I live in NY too Ryan. For an average house to get a mortgage you’d need at least this $100k salary due to the debt to income ratio. It’s sad to think $100k is not a lot. Goes wayyy to quick 😱

    • @stephenlevine3116
      @stephenlevine3116 5 ปีที่แล้ว

      Exactly why I'm moving away from NY/NJ it ain't worth it honestly. Plus since I can work remotely I can save tons of money. I plan on moving to North Carolina or Pennsylvania. But I know there is more then cost of living on why people live where they live

    • @kingc1198
      @kingc1198 5 ปีที่แล้ว

      @@stephenlevine3116 actually NJ is still pretty affordable for now but in Hudson county which is next to NY is getting just as expensive like NY I move from NYC to Hudson county

  • @kp-gbuniqueinterest
    @kp-gbuniqueinterest 5 ปีที่แล้ว +7

    With that amount you are broke/poor in the bay area. People think you can live frugal lives and you would be OK. But in reality you would not. most stuff that they choose to be frugal with end up costing them more, medical bills.

  • @TheEntrepreneurChannel
    @TheEntrepreneurChannel 5 ปีที่แล้ว +23

    In Boston 100k feels like 40k did in upstate New York

  • @barefeg
    @barefeg 4 ปีที่แล้ว +5

    How is affording all average stuff being broke? Wouldn’t it be more like 100k is the new middle class? Your logic went kind of wanky there at the end

  • @paolobenedicti1319
    @paolobenedicti1319 5 ปีที่แล้ว +5

    I’m seriously perplexed:
    Left 740$
    Savings 400$
    Dating 400$
    Vacation 250$
    ---------
    Total 1790$ a month...21,480$ a year...
    Is it that bad....? Welcome to the real world.

  • @bluereason
    @bluereason 5 ปีที่แล้ว +35

    you need 500 on groceries an 400 for date night? can you feed me and can we go on a date?

    • @blockaderunner
      @blockaderunner 5 ปีที่แล้ว +5

      If you eat healthy $400 a month is enough. Unhealthy food will probably run you $200 a month. I go into hibernation during winter months, so that cuts out the $400 dating costs.

    • @rons.6683
      @rons.6683 5 ปีที่แล้ว +1

      Bluereason Remember?, he said he’s in NY.

    • @jcw034
      @jcw034 5 ปีที่แล้ว +2

      Who dates like this? I rarely go on dates and even still I am not spending that much money

    • @jonnymorrill8627
      @jonnymorrill8627 5 ปีที่แล้ว +4

      And $3000 for a “worth while vacation” haha New Yorkers am I right

    • @dhtj3618
      @dhtj3618 3 ปีที่แล้ว

      New york is a lot, his reaching with 100k trust me.

  • @diapersFTMFW11
    @diapersFTMFW11 3 ปีที่แล้ว +4

    The concept is .. you can make 1M per year or 100M and still be broke. All depends on what you save/invest for later and your discipline on spending

  • @chich22
    @chich22 5 ปีที่แล้ว +1

    Your estimates seem super inflated. I earn around $55000 a year. My mortgage is $1170 for a $580000 house and all my other outgoings are roughly $400.00. So $1570,00 for bills and the rest for me. Its true for some people the more you earn the more you spend but people just need to spend and save within their means. Whoever's on $100000 a year and is broke is stupid and needs financial help. I am in the UK so maybe you guys in America pay more for things.

  • @brandonbryson3317
    @brandonbryson3317 5 ปีที่แล้ว +1

    I’m a little under 50k...I have almost double left over than this 100k person.

  • @InvestingHustler
    @InvestingHustler 5 ปีที่แล้ว +15

    Depends on the person if you can make 100k and put 60k in the bank then reinvest that 60k and continue doing that you’re money will grow like the snowball effect

    • @riceandbeansandandoil
      @riceandbeansandandoil 5 ปีที่แล้ว +2

      Who's out here putting 60k if they only have $990 left a month

    • @dumbeezy5480
      @dumbeezy5480 5 ปีที่แล้ว

      Investing Hustler your take home pay is about $70ishk if you’re making $100k. How are you saving 86% of your take home pay unless you have zero bills.

    • @bitsandpiecesonly6462
      @bitsandpiecesonly6462 5 ปีที่แล้ว

      I agree. I put 60k annually in my savings account and use 50k for living. I have nice cars and a 300k house (payment of 1800 monthly) .. everything else (expenses) under my control.

  • @rons.6683
    @rons.6683 5 ปีที่แล้ว +9

    RYAN: Great job. On behalf of the MILLIONS of people who think a hundredG is “rich”, THANKS! We need to set our sights higher.

  • @louislim1337
    @louislim1337 5 ปีที่แล้ว +2

    Just an honest opinion: If you are going to say 740 a month left, i assume you mean disposable income? If you add your savings (400) and date night (400), which are definitely disposable income, and even your retirement contribution (400), you are getting at least 1940 dollars a month in disposable income. Dont separate what u save and spend from disposable income as those are wants, not needs. You just seem to be lowering the numbers to make things feel more exgaggerated. And dont get me started on separating cell phone (150), and Cable/wifi (150). I highly doubt you need 300 a month on just wifi, netflix, and installment payments on your new phone.

  • @applebawstm1228
    @applebawstm1228 5 ปีที่แล้ว +1

    And then you are not even calculating a wife or children.
    I don't know how easy it is to make $100.000 a year in America but i like the tax rate over there... Wish it was that low over here in Europe

  • @erikrohr4396
    @erikrohr4396 4 ปีที่แล้ว +1

    $100 per week for date night, saving for future expeses, saving for retirement, a $3000 vacation every year, and $740 per month left over? Doesn't sound "broke" to me. Thumbs down.

  • @zirkenkadu2636
    @zirkenkadu2636 5 ปีที่แล้ว +5

    this was really an eye opener, more reasons as to why passive income is incredibly important

  • @JoniAntonio
    @JoniAntonio 5 ปีที่แล้ว +15

    As a senior systems analyst I was making 102,546 (just looked at my w-2 from 2016) I'm at 115K now and I TOTALLY agree with this. This is the reason I busted my ass in search for passive income.

  • @beastfromtheeast9318
    @beastfromtheeast9318 5 ปีที่แล้ว +2

    I’m glad you broke this down for the people blinded by Instagram and Facebook posts .

  • @personallyjoua
    @personallyjoua 2 ปีที่แล้ว +1

    So true...100k is new broke..we are looking to increase our incomes too.

  • @Paulie8K
    @Paulie8K 5 ปีที่แล้ว +4

    Spending habits and whether you are single/have kids factor in greatly. I was living pretty well on a low 50's salary because I'm frugal and do not try to impress people with fancy stuff. Not having kids help too.

  • @PatrickCogen
    @PatrickCogen 5 ปีที่แล้ว +37

    Great explanation Ryan! It depends on many things but I like your example, keep it up!

  • @RF1octane
    @RF1octane 5 ปีที่แล้ว +1

    100k is enough to have a confortable life, but really not everyone wants to go on vacation every year or drive a new car every year or even a nee phone every time another comes out. You can even quickly burn through a 7 figure salary if you dont have some sort of financial discipline, doesnt matter how much you make you can alway be broke if you want to be broke.

  • @josephgaray6933
    @josephgaray6933 3 ปีที่แล้ว +1

    100k in san diego,ca is nothing. 100k in el paso, tx is a lot.

  • @KudaFamily
    @KudaFamily 3 ปีที่แล้ว +1

    So having a house, a $500/month car, $500/month groceries, a college degree, money set aside every month for retirement, a new phone etc is being broke? Of course all your money is spent, you bought everything you wanted/needed.

  • @black4vcobra
    @black4vcobra 4 ปีที่แล้ว +1

    Many of the expense are too high, my cell bill is $30 a month, date night once a month is $60, car insurance is 75 a month, nobody making less than 200k should have a $530 a month car payment.
    You actually forget the biggest expense, daycare.

    • @olyl3859
      @olyl3859 2 ปีที่แล้ว +1

      $30/month for a cell bill !! Wow, you are good, because most people who have fancy iPhone are probably paying around $80/ month. I actually agree that $530/month for car payment is way too much for most people (90% of American are making less then $100 000). I recently sold my car and I’m now saving a lot of money.

  • @SchizophrenicGamer
    @SchizophrenicGamer 2 ปีที่แล้ว +3

    I learned from this video that you are bad with money :)

  • @951ruben
    @951ruben 5 ปีที่แล้ว +14

    1000 bucks for a house that's really cheap in California.

    • @RayRayDontPlayPlay
      @RayRayDontPlayPlay 5 ปีที่แล้ว +1

      RUBEN M for real. I doubled that in my mind instantly.

    • @Scott-by9ks
      @Scott-by9ks 3 ปีที่แล้ว

      That's because California is expensive! Move to Ohio, midwest, or Oklahoma.

  • @Liyahbeat
    @Liyahbeat 5 ปีที่แล้ว +1

    I make $110K+, and live in NYC. He’s extremely correct. When you factor in expenses, I feel like I only make $40K/year. Note: The numbers that he used here aren’t reflective of NYC, where the cost of living is extremely higher than the national average. We also pay local/city taxes, which means that our take home is much less than the national average. What he’s saying isn’t foreign to NYers (specifically those who live in the five boroughs), because we know that money doesn’t go far here.

  • @winm7479
    @winm7479 4 ปีที่แล้ว +1

    I make 100k life is good. Not even close to being broke.

  • @BriEwing
    @BriEwing 5 ปีที่แล้ว +5

    This was a great breakdown of how the average lifestyle can make you broke. It fuels me to not just make more money but generate wealth.

  • @TheLifeFormulaa
    @TheLifeFormulaa 5 ปีที่แล้ว +1

    $100k is not even enough in NYC to be fair. I did a breakdown and the leftover money after taxes, rent, food, and bills can either be saved or used for personal entertainment not both. However, as part of bills I did include student loan debt iirc

    • @zacharystevens6193
      @zacharystevens6193 5 ปีที่แล้ว

      If you live in Brooklyn 100k a year is okay. But you can forget about it if you plan on living in Manhattan.

  • @1025Dom
    @1025Dom 5 ปีที่แล้ว +2

    The key is to pay off your debt first and then not carry a car payment

  • @justinsorci5998
    @justinsorci5998 5 ปีที่แล้ว +1

    $1030 for a mortgage payment? Not here on the west coast. Apartments start at $1500 let alone a house mortgage.

  • @devanjohnson3092
    @devanjohnson3092 5 ปีที่แล้ว +1

    alot of people need to realize a good life is subjective. all depends on the person you are. i have an average house, a good truck, wife has a good car, fridge is full, and kids are happy. im very well off.

    • @olyl3859
      @olyl3859 2 ปีที่แล้ว

      In Canada, life is good when you are on the Top 20%.

  • @brentshuffler1234
    @brentshuffler1234 5 ปีที่แล้ว +1

    U.S.$100,00 is nearly double the median household's income even in the U.S.A; almost anywhere else in the world, that would be a very high income. The easiest path to financial independence is not earning more, but saving more, and spending less, no matter where you live or what you earn. E.g., my first wage was Bds$125 per week (= U.S.$62.50) and I travelled by bus and ate only home-made meals. I saved about $50 per week. Sometimes, that means moving to a cheaper place or to a cheaper city, State, . . . or COUNTRY.

  • @jcw034
    @jcw034 5 ปีที่แล้ว +1

    So why not call this the paycheck to paycheck for 100k. A real 100k isnt being used to its max. You spend 45k at most and the rest you save/invest.

  • @harrychu650
    @harrychu650 5 ปีที่แล้ว +2

    For context, NYC Councilman are paid $150k with six figure pension plans. You know the economy is broken when government workers are doing better than private sector workers.

    • @stevemcdonald6001
      @stevemcdonald6001 5 ปีที่แล้ว

      "Those" govt workers are living large because they're sucking the blood from teachers, police, fire, etc.

    • @harrychu650
      @harrychu650 5 ปีที่แล้ว

      @@stevemcdonald6001 Wrong, at least when it comes to NYC. Firefighters and Teachers have lucrative pensions in NYC, we'll into six figures. You know the economy s broken when government works do better than private sector workers

    • @stevemcdonald6001
      @stevemcdonald6001 5 ปีที่แล้ว

      I stand corrected, but I mean the world of most ordinary Americans.

    • @stevemcdonald6001
      @stevemcdonald6001 5 ปีที่แล้ว

      The economy is broken mainly due to monopolists buying unlimited favors from politicians. Did I mention the social-darwinist Republican agenda? May numerous fly larvae escort it across the Styx

  • @HonestFinance
    @HonestFinance 5 ปีที่แล้ว +1

    And it doesn’t help that healthcare and tuition keep going up every year, but salaries can’t keep up

  • @badmothertucker6579
    @badmothertucker6579 5 ปีที่แล้ว +1

    HOA dues, daycare, clothing, etc. This is why so many Americans are living paycheck to paycheck!

  • @thepatriarchy7934
    @thepatriarchy7934 5 ปีที่แล้ว +2

    My Dad said a zillion times "if you are smart enough to know how to make it, you better be smart enough to know how to keep it !!!"

    • @Mahtab_1377
      @Mahtab_1377 4 ปีที่แล้ว

      I shared your father's advice in my WhatsApp status👌👍

  • @ScottLeonard
    @ScottLeonard 4 ปีที่แล้ว +1

    I make 100k and save about 4k a month, and have a really nice car. This just depends on your priorities tbh...

  • @yolandarose2765
    @yolandarose2765 3 ปีที่แล้ว +1

    100,000 is not rich but it definitely is not “broke.” It’s pretty blessed in my opinion

  • @chrismorring3352
    @chrismorring3352 5 ปีที่แล้ว +1

    eliminate car payment and school loan that's $920.00 saved

  • @iamtylerman
    @iamtylerman 3 ปีที่แล้ว +1

    if you make 100k and are broke, you just suck at managing your money

  • @babehc
    @babehc 5 ปีที่แล้ว +1

    I keep see financial posts everywhere saying cellphone bill is $150. I don’t understand how can that be. I pay $40 for unlimited text/talk/data in california. $70 is the most expensive plan I have seen here

    • @sams5746
      @sams5746 5 ปีที่แล้ว

      Ivy Gomez56 phone payment iPhones and Samsung’s are upwards of $40 a month if you don’t buy it out right or have your own.

    • @uglypotata6110
      @uglypotata6110 5 ปีที่แล้ว

      maybe 150$ for family plan

  • @danzbeard
    @danzbeard 5 ปีที่แล้ว +1

    Excellent breakdown

  • @semidag2216
    @semidag2216 4 ปีที่แล้ว +2

    The key is to always live below your means

  • @MrNicks-gn8jc
    @MrNicks-gn8jc 3 ปีที่แล้ว +1

    Make 100k, live like you make 50k......so, its renting smaller living spaces, HIGHER MILAGE TOYOTAS/HONDAS, omad diet (ONE MEAL A DAY), and date someone who is growing in your career/business area so you can skill up together and get a higher income.

  • @cindymiller7187
    @cindymiller7187 หลายเดือนก่อน

    I would make a little under this on paper IF I could work consistently and i do not have most of these luxuries. What i do have is a lot of debt from 7 unpaid medical leaves over 8 years due to "pre-existing" health conditions and ongoing medical costs for me and my special needs child. I can no longer take a medical leave no matter how bad my health gets because we will end up homeless. So yes if you throw in medical issues, you can struggle immensely on $40 an hour. Eventually we will get the debt paid off and life will get much better but that may take another 3 years. Until then its going to be a HUGE struggle. This guy also did not mention childcare/daycare costs.