I've only told my mom how much money I have, but she's a miser and spend thrift like me, so its no problem. Well, it actually is a problem, since its hard to get her to treat herself sometimes.
Yes! I told my mother CONFIDENTIALLY when I retired as she was very concerned. That info went straight to my sister, who mow resents me and from whom my family and I have been estranged. My bad!
@@rebeltheharem7028 A spendthrift is someone who spends carelessly. It’s really a problem that we now have generations growing up without reading good literature, and they don’t know what words mean.
I am richer than my friends and it really bums me out. I want them to experience the same peace and happiness that I do but I found out quick they don't want to hear it. So I just stopped bringing it up. And whenever they talk about their problems that are easily solvable I just nod and go "uh-huh". It breaks my heart but they don't want to hear anything.
YES! This is arguably the most frustrating thing about loving this content. You want to be a financial education resource to friends/family, but the reality is this. You can sow the seed, but at some point they gotta water it.
Many of my friends make significantly more than me and complain about silly things that should not even be a problem for them. I just cringe and move on. I try to point them in the right direction without being too forward or direct about it so as to not make them feel bad.
I had the same situation with a friend and coworker regarding her health. I said something to her a long time ago, and never said another word as she became more and more overweight and finally obese and prediabetic with bone spurs in her feet. All I said when she complained about this and that was “that’s too bad.” But it put more pressure on me at work, compensating for her low productivity absenteeism, an increasingly bad and manipulative attitude. She wound up ruining my quality of life all around. Thank God for early retirement.
I think the best way of doing that is to casually talk about generic finance things like how the upcoming admin may impact the market. Ask what your friend's investment strats are because you're looking into new strats, or (my favorite) talk about your friends job industry and get some info related to stocks in that industry so you can "make some trades later" with info from someone you trust. At some point they will ask you about some of these things and really understand you know what you're talking about. Personally, I have friends that now ask me financial questions even after they've met with financial advisors because they don't quite trust the advice they were given.
I agree with the guy above! Slow roll it until it becomes a natural part of the convo. 3 years ago my group of friends wouldn't talk about anything. Now financial stuff is one of the top convos we have. I now know what my friends make. Where their money goes. And what their financial goals are. They know the same about me. Now we can compare information we are learning in our everyday lives. Its really fun
As somebody who has been investing for decades, never ever give your friends investing advice. They will invest, and when the market goes down a little, they will sell, and they will blame you.
I don’t care if some people don’t like it. I talk about it and I know for a fact that many people’s lives around me have improved because of it. They have told me as much.
Happily married. Three great kids. Retired!! With enough money to do what I want within reason. Yes, I am wealthy in my way. Highest household income was 62k.
The thing we forget about when they say "Keeping Up With the Jones'" is that we are also the Jones in other peoples eyes. So our overspending impacts other people in our lives.
Truly glad to have found this content in my 20's. This is life changing material if you have the discipline to stick with it. Thank you for the free content!
Just to encourage others: I was broke in 2015 at age 47 and one month away from not being able to pay the rent. Embarrassed, ashamed because I knew better. 2024, own a house that will be paid off in 6 years, $300k in investments. I upskilled, GOT RID OF ALL DEBT - except the house of course. YOU CAN DO IT!!
I took part of this survey, it was fun. Anyway, I am richer than all my friends and my side of the family. Hubby's side of the family is a different beast, they know to save/invest combined with working hard to increase income! I wish the people I know are doing financially well. I want the best for my friends.
@@antionetteportillo1622 you’re ahead of me! I’m 34 and only have 50k saved for retirement. I do have about 185k in house equity so that helps me sleep at night. We’ll get there!
I never compared myself to others, that is the main thing i taught my wife and kids. I listen to people, when they brag and they vent out. I keep the good traits and dump the bad ones. Life is too short enjoy it in the right way. No debt beside the house and almost paid off. College fund set aside for the kids. I always thank God!
Love your content guys! You help even the playing field. Went to an expensive college and have many wealthy friends. I am from a middle class family who had great work ethic, good income, but low financial literacy. They helped me pay for school and I am super grateful. Despite that had to work summers and weekends to get by while my friends partied. Had 2 jobs most of my 20s. 10 years later I'm making more than 90% of my college friends but will likely NEVER catch up to their equity accumulation. Many of them getting 5-6 figure contributions from family towards home purchases, weddings, etc and will inherit 7 figure estates. It's good to be around people who are more successful than you because it will motivate you. and I've learned a lot from my more old money friends about investing. Everyone's journey is different.
It is hard with friends that are much much poorer than us. We live in a high cost of living and high wage area, but a couple of my friends rent small apartments and drive beater cars - not by choice, but because they can't afford more. We are very fortunate that our friends don't make it awkward, but we definitely don't bring up our investments, 401Ks, net worth, how much our cars cost, etc. around them. On a side note: I do agree that habits are more important than income (per The Money Guys)... however, a high income makes it super easy to be a multimillionaire when you already have good habits.
Well that’s dumb. Why would you need to flash your net worth when talking about finance? Dude, the s&p 500 is up 30%, have you checked your 401 lately? Such a statement doesn’t have anything to do with whether or not you have millions.
Just doing the company retirement thing I was able to hit 100k at 30 and be debt free. Withholding from the paycheck is the only way to go. At 41 now I have found that living in one of those HIGH cost of living areas for 15 years and living like we were broke, the cup over floweth now and that is why I have sought out what to do with the excess savings. The power of having roommates when you are paying off student loans, then staying in a 1 bedroom and only owning 10yr old cars for a decade pays off dividends. People thought we were crazy staying in our small place even after kids started showing up but it saves 5 figures a year!
I just turned this on. Just because someone buys the cheapest (priced) house in a neighborhood does not mean they are poorer than their neighbors. It just might mean they saved money and like doing upgrades or repairs themselves. But with that said, Brian still makes a great point if indeed they ARE poorer than neighbors.
I don't feel bad about my wealth. I moved to USA at age 11 with English as second language, started working at 18 no college degree making $35k and now making $80k. But I never bought an expensive car and invested everything I could and now have $1.3 million.
I am much poorer than my successful, smart, rich & wealthy sister. She’s already retired at 45. I would have to save 3-5 times as much to catch up to her. Story of my life.
To be fair, it was a box you checked on the survey. I’m 27 and just hit 100k a month ago, so I technically fell into that bucket as well. I think most of the “mutants” in their 20s are in the 100k to 200k range, maybe a bit more
I just turned 30 but I left the decade with an investment account of 255k. Really got the income to make that happen at 26 years old. Wife and I left our 20s with a net worth of 690k. You got this!
I didn't take the comparison as destructive - I need: 1) to know what I have to do 2) to know that it can be done I actually have one of the smallest houses on the street .. it has appreciated more than average (that part is true) .. I don't really know my neighbours we don't talk much
I'll just answer the question. Yes! I'm 38 and I've built up enough to retire in 5-7 years. I live in a nice neighborhood, and everyone is driving around in luxury vehicles, while I drive around in my used minivan. But when I get to talking with my friends, they all have crazy amounts of car debt and HELOCs. I know one guy who did a cash-out-refi on his house and used the money for a down payment on a Tesla.
When i was 19 I remember always thinking how so many people have such nice cars and always felt like I was doing things wrong financially until I got older and realized that the vast majority of people with really nice vehicles are buried up to their eyes in debt.
I'd like to see those household income charts done at say 150k, 200K, 300K, etc. Also, I wonder how much higher the percentage would be that couldn't come up with, say $2k, $3k, $5k, etc for an emergency. I love stats and data! Thanks for the video.
I think they got overly excited with the HH income, cause it’s “household” which means 2 people. They should do another survey asking for individual income.
My friends suck with money. Most of them don't even want to try and get better so I just let them know to talk to me when they change their mind but I can't force them to be better financially. So yes, I'm definitely richer than all my friends.
Can you guys talk about how things change for single vs married people. With only one “potential” SS check, do single people need to save more? I understand being single is cheaper than being married, but many of the fixed costs are the same for single vs married people. So is the 25% general guidance enough for single folks or should we be saving more? What other differences should us single people think about when planning for our future?
If you are living off of 1 income now, then 25% of that income should be enough for retirement (depending on what age you started being able to invest 25%). If you are going into debt while living on 1 income, then investing 25% might not be possible - married or not. Live within your means now (if you can), wisely invest 25% as suggested, then you will have a big and beautiful tomorrow. We are married and we do not take that into consideration when we invest 25% of our combined income. Our combined income is the same as if it was a single income. You can probably use their wealth multiplier if you want to deviate from 25% and then include your cost of living area (low or high), etc. Best to assume 25% or get a financial planner for a more tailored approach.
Thanks as always for the content! I look forward to seeing how you continue to incorporate survey results. I got some catching up to do to reach median net worth of your audience (and average Americans for that matter). Currently expecting to hit $0 by age 30, but should be back in with the financial mutant median sometime in my 40s.
I’ve heard that you end up with the same spendable wealth if ho with traditional but change your contribution to account for the tax savings. Is traditional 401k and Roth IRA the way to go?
If you are able to max out the IRA, then maxing out a ROTH is more money saved since the taxes are already paid. If you are just looking for the maximum tax advantage, then it depends on your income level now vs income level in retirement. I think a mix of traditional and ROTH is desirable, because you can essentially choose your own tax rate. For my 401(k) the employer contribution is traditional, so I do ROTH for my contribution even though I'm in a high tax bracket. In retirement, my income will still be $250k+ from utilizing the 401(k) and RMDs. For estate planning, ROTH is also desirable so your beneficiaries don't have to worry about the taxes. To summarize, look at the tax brackets. I'd say if you are in a 24% and below tax bracket, then ROTH is definitely the way to go. So if you are married, it's if you make less than $364,200. If you are single it's $182,100. Tax rates jump to 32% over those amounts, which is pretty steep. But depending on how much you have in traditional 401(k) and IRAs, it might still make sense to do ROTH.
If the tax rates and investments are the same, then ROTH and traditional are the same, but if you put your riskier investments in Roth and your safer investments in Traditional, you will have some tax advantages. Furthermore, if you will have a high marginal tax rate while contributing, you probably want to go with traditional more often. It takes some bets and sophistication!
Part of why we hit 6 figures before 30 is because $100k today is $75k just four years ago. Rent in my area, for the same apartment, went from $995 to $1650 in those four years. That would even indicate that $100k in my area would be even less than $75k four years ago.
I'm a little confused because it was also household income but they were talking about it and themselves as if it was individual like when he said he wanted to make 6 figures by his 30s and he thinks we are too based on the info. But that chart only shows dual income of 6 figures. It could be 50k a piece.
If you were middle class most of your life but you've become rich... it's hard to fit in with the middle class because you have none of the financial issues they have and you can't really fit in with the ultra-wealthy because you are the poorest of the rich... this a net worth between 4 and 10 million. You are in this phase where you don't fit in with either group.
People definitely lied on that survey. 24 years old and just made 140k this year but I probably know 2-3 others in our 20s breaking 100k. Live in a mid COL city.
$15/hr may sound like a lot for minimum wage workers (and it's much better than the $7.25/hour I was making in TN less than 10 years ago), but even someone working full time at that wage is making just over $30k before taxes. Making $100k is still a great accomplishment today, especially if you're young.
Yes, I don't have anyone that I can talk to about money anymore. Not friends, not family, ... kinda an outlier even within the mutant community. Half our siblings (wife and I ) are likely gonna work until they can't anymore and still be scraping by. Only celebrated once with my father who at least has a pension and I've added another 50% since then. I don't want to humblebrag and nobody else is in a position to really improve so I can't even get too many converts. I also feel like now that I have all the funds... I can't find anything that I want to spend it on, sure I've gotten a few "big ticket" items but most were practical items. It's silly but a nice heat-pump combo washer dryer is so nice, just throw in dirties and take out clean, dry, clothes.
Stuff isn't what motivates you, financial peace does, seek out how you can serve others, you will find a new mission, many options. You have the ability to make life long impactful change and develop others.
I know they’re speaking to a wide audience but I feel they need to define a financial mutant as someone who can retire by 60 if not 55. Doesn’t mean they have to stop but they retire and life comfortably on their investments and even social security/pension.
Financial Mutants refers to those following the Financial Order of Operation (aka FOO). Its not that all mutants have already achieved millionaire status but are on the path to a healthier financial outcome.
I will argue with you guys a bit about balance transfers. I did it many years ago when I started my journey. It definitely helped. But like you say, only if the behaviors have changed.
When you're over 70, and all your friends are even older, you find out how effective saving and investing are. We're in a HCOL area, and if you take advantage of the opportunities, you can create real wealth. Net worth of $5 million is not uncommon, and much more is certainly possible.
I find some of the stats around the "56% of Americans would have a hard time coming up with $1000" to be a little off. That stat comes from a bankrate survey on emergency savings and the specific question is basically "how would you pay for a $1000 emergency" - 44% say they'd pay it out of their emergency savings. The next highest answer is "pay with a credit card and pay it off over time" at 21%. The rest are various forms of borrow the money (personal loans, friends and family) and pinching pennies in other places. Despite being perfectly comfortable, my answer would be "put it on a credit card" and make the decision when the bill is due. I also have enough that I stopped thinking about some slice of my money as being an emergency fund. My emergency fund is either $0 or decades of expenses depending on the phrasing. I doubt people like me are a huge swing in the percentages, but they might be measurable.
I make way more money than anyone in my family and all of my friends and it’s honestly weird sometimes. I don’t talk about how much I make or have but I really like doing nice things for them and helping when I can so I’m sure they know I have some disposable funds.
I’m certainly above average compared to general population in my age cohort (40s) but average compared to mutants. That’s fine, I’m on track. What’s hard in the messy middle is keeping up savings rate. We’re at 12-15%. Its hard when hvac breaks, kids need braces, car needs replacement, 529s, new roof etc. We’re also single income by choice and tithe 10%. We’ve made our priorities - retirement will be comfortable, not excessive.
23:50 “1 in 4 aren’t getting full employer match” ?! It’s more like 1 out of 2 don’t put into 401k let alone match. Every company I’ve been at the participation rate is like 45-50%
They say you are who you associate with! Thankfully, our small circle is equally as wealthy as we are. We all earn similar household incomes, have similar portfolios, and are similar in that we each have a pension, or 2 or 3. Fortunately, we're a little above 4.5x the median household income. The bigger the shovel, the easier the task! We're at 25% investment rate. It would be more but with our pensions it doesn't need to be.
Just because someone makes more money than you or has more than you, doesn't mean they're more successful than you. They may work in a more lucrative field, they may come from a family with money and someone bought their home for them or paid for their college education, but you had to take out student loans.
30 from MA, first year making 50k. Roth 401k at 48k and my ESOP account is ~30k~. The only reason I’m doing remotely well is because I’ve been on the slow grind working at the esop factory for 10 years and investing since 21y/o
Share a data point here. I immigrated from Asia in 2017 to assume a professor post at a R1 university in USA at the age 41 with almost nothing, wife always a homemaker, no income ever. Now: saved $340K for retirement investment, bought house in cash (now worth >$500K), and got a $100K annuity for my wife ($1,000/month for life later). Still far behind compared with most people here, but focus on comparing with your younger self-not others.
what's really not clear in the episode is are they talking about individual or household income? individual or household wealth? that makes a huge difference.
29 years old, 1.2M net worth, so I’d say probably. It’s not in my nature to want to brag to them though, so I don’t feel comfortable telling them what I’m worth or asking them what they’re worth.
I get great comfort owning the smallest house model in my neighborhood knowing many of my neighbors are mortgaged to the hilt to live in theirs. I own my 2 nice cars rather than leasing various luxury brands.
We are absolutely not richer than our friends. One couple is older than us and never had to pay for their only child's 3 college degrees. Another couple had the wife's parents purchase a house for them.
I am richer than my friends. Came from nothing. Had a friend from childhood who is still struggling turn on me and tell me I changed because I invited her on a trip to Europe.
My net worth is 160% higher than that of people in their 60's, and I'm only 40 years old. Zero inheritances, zero windfalls, zero marriages, zero kids, zero college, started investing at 20 in my 401k, I finally figured out how to invest in stocks at age 35, and I've only made $50-60k a year income my entire career. Guess I'm doing something right. 😆 I'm definitely a proud financial mutant.
Wow, congrats to you on your accomplishment. Just for clarification, when you say 160% of people in their 60s are you talking about mutant 60 yr olds (i.e. $2.5m). If so that puts you at a net worth North of $4m. Doing some quick math based on the info you provided you would be living off less then $3k/month (after 401k max cont, Roth cont, taxes). looking at the max contribution for 401k since 2004 (employer and employee) that would give you $1.1m with a annual rate of return of 10% your total earnings is ~$2.3m so a grand total of $3.4m in your 401k. If you maxed a Roth during that same time the max contributions would have been $112k with same rate of return earning you another $227k for a grand total of $339k. So you total net worth in IRAs is ~$3.8m. Ya, I can see you getting to $4m with some brokerage investments. My suggestion for your before you jump into your retirement is to think about asset location and how your current portfolio might need some massaging to better position you financially. Specifically if a majority of your assets are in tax deferred accounts/locations (aka 401k) you might consider shifting your future contributions to tax free options (i.e. Roth and/or Health Savings Accounts) or other non tax deferred investment vehicles. There are way too many 401k millionaires who get enamored with the statement balances and forget that that balance has yet to be taxed. 401k withdrawals count as Ordinary Income, so they will be taxed at the marginal tax rate with could be in the +20% range for many. Additionally the withdrawals could also impact healthcare tax (IRMAA) and brokerage Capital Gains (Net Investment Income). I for one wish I had routed some of my 401k to Roth and HSA earlier or at least built up a larger cash reserve.
Does it really matter, yes and no! I don’t want to be richer than my friends, but I want to surround myself with people who can make me smarter about managing my finances. I used to say in my classes if nine of your friends are broke, it’s good bet you are going to broke also.
It is really disappointing that so many comments are removed from this comment section. I just want everyone to know this is an echo chamber, and my thoughts at least are not fully represented. How many other knowledgeable commenters are being censored?
Yeah I’m probably richer than more than half of my friends. But I definitely look poor because I don’t care much for material things. I save and invest a lot to give my family a better life, not to buy a bunch of stuff.
i’d love to have graduated with less debt than a years worth of salary but even after getting good scholarships and going to community college there was no way i was getting out with less than 50k 😂 sure that’s the ideal but i graduated with 140k in 2019 - down to 100k, paying it off in 2032 at the latest by my calculations 😂😂 some peoples parents can’t pay for airfare and housing for them to go to the cheapest state school they can find
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My friends don't know how wealthy I am. In fact, I haven't even told my parents. These days, I feel like it's smarter to be quiet with your money.
It’s always been smartest, and considered food manners, to keep it confidential. And you can’t un-ring the bell.
UHC CEO found that out the hard way
I've only told my mom how much money I have, but she's a miser and spend thrift like me, so its no problem. Well, it actually is a problem, since its hard to get her to treat herself sometimes.
Yes! I told my mother CONFIDENTIALLY when I retired as she was very concerned. That info went straight to my sister, who mow resents me and from whom my family and I have been estranged. My bad!
@@rebeltheharem7028 A spendthrift is someone who spends carelessly. It’s really a problem that we now have generations growing up without reading good literature, and they don’t know what words mean.
I am richer than my friends and it really bums me out. I want them to experience the same peace and happiness that I do but I found out quick they don't want to hear it. So I just stopped bringing it up. And whenever they talk about their problems that are easily solvable I just nod and go "uh-huh". It breaks my heart but they don't want to hear anything.
YES! This is arguably the most frustrating thing about loving this content. You want to be a financial education resource to friends/family, but the reality is this. You can sow the seed, but at some point they gotta water it.
They are stuck in the consumer matrix. Just enjoy your time with them. Don’t try to parent them.
This ^^^ 100% This.
Many of my friends make significantly more than me and complain about silly things that should not even be a problem for them. I just cringe and move on. I try to point them in the right direction without being too forward or direct about it so as to not make them feel bad.
I had the same situation with a friend and coworker regarding her health. I said something to her a long time ago, and never said another word as she became more and more overweight and finally obese and prediabetic with bone spurs in her feet. All I said when she complained about this and that was “that’s too bad.” But it put more pressure on me at work, compensating for her low productivity absenteeism, an increasingly bad and manipulative attitude. She wound up ruining my quality of life all around. Thank God for early retirement.
I love personal finance so much that I want the stigma of talking about it gone so I can make sure my friends are on pace, haha.
I think the best way of doing that is to casually talk about generic finance things like how the upcoming admin may impact the market. Ask what your friend's investment strats are because you're looking into new strats, or (my favorite) talk about your friends job industry and get some info related to stocks in that industry so you can "make some trades later" with info from someone you trust.
At some point they will ask you about some of these things and really understand you know what you're talking about. Personally, I have friends that now ask me financial questions even after they've met with financial advisors because they don't quite trust the advice they were given.
I agree with the guy above! Slow roll it until it becomes a natural part of the convo. 3 years ago my group of friends wouldn't talk about anything. Now financial stuff is one of the top convos we have. I now know what my friends make. Where their money goes. And what their financial goals are. They know the same about me. Now we can compare information we are learning in our everyday lives. Its really fun
As somebody who has been investing for decades, never ever give your friends investing advice. They will invest, and when the market goes down a little, they will sell, and they will blame you.
I don’t care if some people don’t like it. I talk about it and I know for a fact that many people’s lives around me have improved because of it. They have told me as much.
Haha I feel this, when the topic comes up I can’t help but vomit up all my knowledge. I wish it was normal to causally talk about it.
Happily married. Three great kids. Retired!! With enough money to do what I want within reason. Yes, I am wealthy in my way. Highest household income was 62k.
That is true wealth. Well done
The thing we forget about when they say "Keeping Up With the Jones'" is that we are also the Jones in other peoples eyes. So our overspending impacts other people in our lives.
Thank goodness I don't compare myself to others, then. I also don't want others to compare themselves to me.
Truly glad to have found this content in my 20's. This is life changing material if you have the discipline to stick with it. Thank you for the free content!
Just to encourage others: I was broke in 2015 at age 47 and one month away from not being able to pay the rent. Embarrassed, ashamed because I knew better. 2024, own a house that will be paid off in 6 years, $300k in investments. I upskilled, GOT RID OF ALL DEBT - except the house of course. YOU CAN DO IT!!
This is trully inspiring, thankyou for sharing
Same here .. yup, it CAN be done like these guys say
All of my friends are pretend wealthy. They're also imaginary.
😆
Same, but I could die tomorrow and they're having fun today.
Wait until you invite them to go on a great vacation, or cruise. Then you know they are not planners.
Whoever came up with "cashnal guard" is definitely a dad.
Cashnal guard is a total dad joke, but it kinda slaps though 😂
Oh I will be using “cashnal guard” for sure. Let’s get this bish into the general vernacular!
I took part of this survey, it was fun. Anyway, I am richer than all my friends and my side of the family. Hubby's side of the family is a different beast, they know to save/invest combined with working hard to increase income! I wish the people I know are doing financially well. I want the best for my friends.
Any other average Americans out there who watch this show?
You have to start somewhere!
Me, I just hit $100k retirement, and I'm 30. I can't imagine having 400k-700k. I also don't own real estate and need to build up my emergency fund 😮💨
@@antionetteportillo1622 you’re ahead of me! I’m 34 and only have 50k saved for retirement. I do have about 185k in house equity so that helps me sleep at night. We’ll get there!
Yup, only have $1000 saved, paying off 5 figure debt, learning retirement and investing!
Their clients are the top earners. Not middle class. But the foo steps still work.
I never compared myself to others, that is the main thing i taught my wife and kids. I listen to people, when they brag and they vent out. I keep the good traits and dump the bad ones. Life is too short enjoy it in the right way. No debt beside the house and almost paid off. College fund set aside for the kids. I always thank God!
I’m very wealthy because I’m retired, healthy, and debt free. That’s all I need.
Love your content guys! You help even the playing field.
Went to an expensive college and have many wealthy friends. I am from a middle class family who had great work ethic, good income, but low financial literacy. They helped me pay for school and I am super grateful. Despite that had to work summers and weekends to get by while my friends partied. Had 2 jobs most of my 20s.
10 years later I'm making more than 90% of my college friends but will likely NEVER catch up to their equity accumulation. Many of them getting 5-6 figure contributions from family towards home purchases, weddings, etc and will inherit 7 figure estates. It's good to be around people who are more successful than you because it will motivate you. and I've learned a lot from my more old money friends about investing. Everyone's journey is different.
It is hard with friends that are much much poorer than us. We live in a high cost of living and high wage area, but a couple of my friends rent small apartments and drive beater cars - not by choice, but because they can't afford more. We are very fortunate that our friends don't make it awkward, but we definitely don't bring up our investments, 401Ks, net worth, how much our cars cost, etc. around them. On a side note: I do agree that habits are more important than income (per The Money Guys)... however, a high income makes it super easy to be a multimillionaire when you already have good habits.
Well that’s dumb. Why would you need to flash your net worth when talking about finance?
Dude, the s&p 500 is up 30%, have you checked your 401 lately?
Such a statement doesn’t have anything to do with whether or not you have millions.
Just doing the company retirement thing I was able to hit 100k at 30 and be debt free. Withholding from the paycheck is the only way to go. At 41 now I have found that living in one of those HIGH cost of living areas for 15 years and living like we were broke, the cup over floweth now and that is why I have sought out what to do with the excess savings.
The power of having roommates when you are paying off student loans, then staying in a 1 bedroom and only owning 10yr old cars for a decade pays off dividends. People thought we were crazy staying in our small place even after kids started showing up but it saves 5 figures a year!
I just turned this on.
Just because someone buys the cheapest (priced) house in a neighborhood does not mean they are poorer than their neighbors. It just might mean they saved money and like doing upgrades or repairs themselves.
But with that said, Brian still makes a great point if indeed they ARE poorer than neighbors.
Did Brian realize when he said 19:01 “we’re right at the halfway point” literally 50% into the video haha 😂
That joke… national guard 😂😂😂😂 love these guys!!!! I am in tears at this reaction… rewind that part 3 times!!!
I'm glad you remade this episode. It's such a catchy phrase and excellent way to think
I don't feel bad about my wealth. I moved to USA at age 11 with English as second language, started working at 18 no college degree making $35k and now making $80k. But I never bought an expensive car and invested everything I could and now have $1.3 million.
I am much poorer than my successful, smart, rich & wealthy sister. She’s already retired at 45. I would have to save 3-5 times as much to catch up to her. Story of my life.
Lol that's me and my brother. However I'm comfortable with that.
Comparison is the thief of joy.
Not if you compare to the right people 😂
@joelplatt2651 good luck with making sure you compare to the right people.
And my parents always comparing me to my sibling means I've never known joy
It’s actually the king of motivation.
Not if you are Elon Musk
400k for 20 y/o’s is crazy
To be fair, it was a box you checked on the survey. I’m 27 and just hit 100k a month ago, so I technically fell into that bucket as well. I think most of the “mutants” in their 20s are in the 100k to 200k range, maybe a bit more
I just turned 30 but I left the decade with an investment account of 255k. Really got the income to make that happen at 26 years old.
Wife and I left our 20s with a net worth of 690k.
You got this!
@@colorblindkid720well done! What’s been your average income throughout the years? How much do you try and save monthly ?
Dang I'm bang in the middle of the financial mutant stats. I'm an average financial mutant! Love it
Excellent work
I love "Cash-nal Guard" !
Hey Brian, I just picked up Millionaire Mission. Going to crack it open on the subway ride home.
The BLESSING of Preparing now, verses the DESPARATION of Later.
Hey Brian. Your audio book is not available on Spotify. Could you please confirm when it’s gonna available. I would love to listen your book. Ty
I didn't take the comparison as destructive - I need:
1) to know what I have to do
2) to know that it can be done
I actually have one of the smallest houses on the street .. it has appreciated more than average (that part is true) .. I don't really know my neighbours we don't talk much
The real question is can you afford to be around your friends and vice versa; and if not, is everyone okay with that?
When i saw the title of this video my first thought was "who cares".
That's the mindset you need. Don't compare yourself, just do what you need to do.
They care! Lots of jealousy out there
I'll just answer the question. Yes! I'm 38 and I've built up enough to retire in 5-7 years.
I live in a nice neighborhood, and everyone is driving around in luxury vehicles, while I drive around in my used minivan. But when I get to talking with my friends, they all have crazy amounts of car debt and HELOCs. I know one guy who did a cash-out-refi on his house and used the money for a down payment on a Tesla.
When i was 19 I remember always thinking how so many people have such nice cars and always felt like I was doing things wrong financially until I got older and realized that the vast majority of people with really nice vehicles are buried up to their eyes in debt.
My family thinks we are struggling because I work a lot and we drive old cars.
Congrats on your success.
@@bucknut9475 Thanks. And go Buckeyes!
I'd like to see those household income charts done at say 150k, 200K, 300K, etc. Also, I wonder how much higher the percentage would be that couldn't come up with, say $2k, $3k, $5k, etc for an emergency. I love stats and data! Thanks for the video.
I think they got overly excited with the HH income, cause it’s “household” which means 2 people.
They should do another survey asking for individual income.
I have the ability to give my savings accounts nicknames; I've just renamed one of them to my "Cashional Guard"
“Cashonal Guard” to your self-rescue. Great contribution Nick! Thanks Money Guy for sharing.
My friends suck with money. Most of them don't even want to try and get better so I just let them know to talk to me when they change their mind but I can't force them to be better financially. So yes, I'm definitely richer than all my friends.
I have $6k at 0% left owed on my mattress. Other than that, I have zero credit card debt.
Can you guys talk about how things change for single vs married people. With only one “potential” SS check, do single people need to save more? I understand being single is cheaper than being married, but many of the fixed costs are the same for single vs married people. So is the 25% general guidance enough for single folks or should we be saving more? What other differences should us single people think about when planning for our future?
Being married is cheaper per person than being single. It's not apples to apples. Also depends on lifestyle.
If you are living off of 1 income now, then 25% of that income should be enough for retirement (depending on what age you started being able to invest 25%). If you are going into debt while living on 1 income, then investing 25% might not be possible - married or not. Live within your means now (if you can), wisely invest 25% as suggested, then you will have a big and beautiful tomorrow. We are married and we do not take that into consideration when we invest 25% of our combined income. Our combined income is the same as if it was a single income. You can probably use their wealth multiplier if you want to deviate from 25% and then include your cost of living area (low or high), etc. Best to assume 25% or get a financial planner for a more tailored approach.
Thanks as always for the content! I look forward to seeing how you continue to incorporate survey results. I got some catching up to do to reach median net worth of your audience (and average Americans for that matter). Currently expecting to hit $0 by age 30, but should be back in with the financial mutant median sometime in my 40s.
What is the youtube page for Poor Money Guy Show?
Any get-rich-quick sub will do
Caleb Hammer 😂
Dave Ramsey Show
Dave Ramsey's mindset approach is excellent - follow him closely until you're at least out of high interest (more than ~10%) debt.
I like the cashnal guard!
We have friends that are all over the financial range.
I’ve heard that you end up with the same spendable wealth if ho with traditional but change your contribution to account for the tax savings. Is traditional 401k and Roth IRA the way to go?
Depends on your tax rate now vs. what it will be in retirement.
If you are able to max out the IRA, then maxing out a ROTH is more money saved since the taxes are already paid.
If you are just looking for the maximum tax advantage, then it depends on your income level now vs income level in retirement. I think a mix of traditional and ROTH is desirable, because you can essentially choose your own tax rate. For my 401(k) the employer contribution is traditional, so I do ROTH for my contribution even though I'm in a high tax bracket. In retirement, my income will still be $250k+ from utilizing the 401(k) and RMDs.
For estate planning, ROTH is also desirable so your beneficiaries don't have to worry about the taxes.
To summarize, look at the tax brackets. I'd say if you are in a 24% and below tax bracket, then ROTH is definitely the way to go. So if you are married, it's if you make less than $364,200. If you are single it's $182,100. Tax rates jump to 32% over those amounts, which is pretty steep. But depending on how much you have in traditional 401(k) and IRAs, it might still make sense to do ROTH.
If the tax rates and investments are the same, then ROTH and traditional are the same, but if you put your riskier investments in Roth and your safer investments in Traditional, you will have some tax advantages. Furthermore, if you will have a high marginal tax rate while contributing, you probably want to go with traditional more often. It takes some bets and sophistication!
How many houses has Brian visited so far and where am I on the list? Another good video as always. I’ll leave the light on!
He won't come unless you leave some milk and cookies by the fireplace.
When you’re talking about net worth by age towards the end, is this individual net worth, or joint / household net worth for married couples?
I believe the survey they did was household vs individual
Thank you MG! This is the survey recap we were hoping for. Already shared this episode multiple times!❤
Part of why we hit 6 figures before 30 is because $100k today is $75k just four years ago.
Rent in my area, for the same apartment, went from $995 to $1650 in those four years. That would even indicate that $100k in my area would be even less than $75k four years ago.
LOVE the CASHinal Guard
Great information 🎉🎉🎉
What was the sample size for your survey?
I'm a little confused because it was also household income but they were talking about it and themselves as if it was individual like when he said he wanted to make 6 figures by his 30s and he thinks we are too based on the info. But that chart only shows dual income of 6 figures. It could be 50k a piece.
Doesn’t really matter - response bias would be incredible.
If you were middle class most of your life but you've become rich... it's hard to fit in with the middle class because you have none of the financial issues they have and you can't really fit in with the ultra-wealthy because you are the poorest of the rich... this a net worth between 4 and 10 million. You are in this phase where you don't fit in with either group.
You don't need to fit in. Just enjoy your life and do you booboo.
Keep living middle class. There's no need to discard friends - everyone has their own struggles. And bring nice food to the potlucks!
@arh1234 this. When you reach that point its time to give back, and do it with joy.
People definitely lied on that survey. 24 years old and just made 140k this year but I probably know 2-3 others in our 20s breaking 100k. Live in a mid COL city.
Lol no ur in the extreme, 24 making 140 is rare it's probably just your peers that make u think it's common
Agreed. I am 29 making 130k and I feel like it's still a lot compared to most. I am quite good at budgeting so wealth has accumulated.
Making $100K is not the same as it was 25 yrs ago. Min wage jobs 25 yrs ago was ~$5 per hour. Today fast food workers make +$15 per hour in CA.
Ok. But 100k is still a lot in the vast majority of states bro.
$15/hr may sound like a lot for minimum wage workers (and it's much better than the $7.25/hour I was making in TN less than 10 years ago), but even someone working full time at that wage is making just over $30k before taxes. Making $100k is still a great accomplishment today, especially if you're young.
I got 60k now and I got no where to dump bro, everything is jacked up in the stock market.
These guys usually recommend a fund geared to the S&P 500 as a starter
My cashional guard is lead by General Dollar
I'm glad to hear it isn't Major Bummer!
Bo is so excited
Yes, I don't have anyone that I can talk to about money anymore. Not friends, not family, ... kinda an outlier even within the mutant community. Half our siblings (wife and I ) are likely gonna work until they can't anymore and still be scraping by. Only celebrated once with my father who at least has a pension and I've added another 50% since then. I don't want to humblebrag and nobody else is in a position to really improve so I can't even get too many converts. I also feel like now that I have all the funds... I can't find anything that I want to spend it on, sure I've gotten a few "big ticket" items but most were practical items. It's silly but a nice heat-pump combo washer dryer is so nice, just throw in dirties and take out clean, dry, clothes.
Stuff isn't what motivates you, financial peace does, seek out how you can serve others, you will find a new mission, many options. You have the ability to make life long impactful change and develop others.
I know they’re speaking to a wide audience but I feel they need to define a financial mutant as someone who can retire by 60 if not 55. Doesn’t mean they have to stop but they retire and life comfortably on their investments and even social security/pension.
Financial Mutants refers to those following the Financial Order of Operation (aka FOO). Its not that all mutants have already achieved millionaire status but are on the path to a healthier financial outcome.
I will argue with you guys a bit about balance transfers. I did it many years ago when I started my journey.
It definitely helped. But like you say, only if the behaviors have changed.
When you're over 70, and all your friends are even older, you find out how effective saving and investing are. We're in a HCOL area, and if you take advantage of the opportunities, you can create real wealth. Net worth of $5 million is not uncommon, and much more is certainly possible.
I find some of the stats around the "56% of Americans would have a hard time coming up with $1000" to be a little off. That stat comes from a bankrate survey on emergency savings and the specific question is basically "how would you pay for a $1000 emergency" - 44% say they'd pay it out of their emergency savings. The next highest answer is "pay with a credit card and pay it off over time" at 21%. The rest are various forms of borrow the money (personal loans, friends and family) and pinching pennies in other places. Despite being perfectly comfortable, my answer would be "put it on a credit card" and make the decision when the bill is due. I also have enough that I stopped thinking about some slice of my money as being an emergency fund. My emergency fund is either $0 or decades of expenses depending on the phrasing. I doubt people like me are a huge swing in the percentages, but they might be measurable.
I'm the poorest among my closer friends. Richer than my acquaintances. I like it that way.
I make way more money than anyone in my family and all of my friends and it’s honestly weird sometimes. I don’t talk about how much I make or have but I really like doing nice things for them and helping when I can so I’m sure they know I have some disposable funds.
I have no friends.
Problem solved. 😆
The wealthier I become, the less friends I have. I'm fine with that.
For us financial mutants I feel like the answer is almost always going to be yes. 😂
I’m certainly above average compared to general population in my age cohort (40s) but average compared to mutants. That’s fine, I’m on track. What’s hard in the messy middle is keeping up savings rate. We’re at 12-15%. Its hard when hvac breaks, kids need braces, car needs replacement, 529s, new roof etc. We’re also single income by choice and tithe 10%. We’ve made our priorities - retirement will be comfortable, not excessive.
Right when I get a pay raise I get behind the curve :D Is that normal?
*Looks around* I should of decided to be born with an emerald mine.
23:50 “1 in 4 aren’t getting full employer match” ?!
It’s more like 1 out of 2 don’t put into 401k let alone match. Every company I’ve been at the participation rate is like 45-50%
They say you are who you associate with! Thankfully, our small circle is equally as wealthy as we are. We all earn similar household incomes, have similar portfolios, and are similar in that we each have a pension, or 2 or 3.
Fortunately, we're a little above 4.5x the median household income. The bigger the shovel, the easier the task! We're at 25% investment rate. It would be more but with our pensions it doesn't need to be.
Just because someone makes more money than you or has more than you, doesn't mean they're more successful than you. They may work in a more lucrative field, they may come from a family with money and someone bought their home for them or paid for their college education, but you had to take out student loans.
Shoutout to the cashional guard
30 from MA, first year making 50k. Roth 401k at 48k and my ESOP account is ~30k~. The only reason I’m doing remotely well is because I’ve been on the slow grind working at the esop factory for 10 years and investing since 21y/o
Good video
Yall are legit
Share a data point here. I immigrated from Asia in 2017 to assume a professor post at a R1 university in USA at the age 41 with almost nothing, wife always a homemaker, no income ever. Now: saved $340K for retirement investment, bought house in cash (now worth >$500K), and got a $100K annuity for my wife ($1,000/month for life later). Still far behind compared with most people here, but focus on comparing with your younger self-not others.
what's really not clear in the episode is are they talking about individual or household income? individual or household wealth? that makes a huge difference.
Is it just me or around 18 minutes you can hear Brian breathing in the background as boau is talking. 😂
I was looking for this comment 😂🌬
I read and see all the statistics but when I drive around America more than 50% of the folks surely looks rich.
A whole lot of averages here. I would MUCH rather see median amounts.
Where is Florida on that list ?
29 years old, 1.2M net worth, so I’d say probably. It’s not in my nature to want to brag to them though, so I don’t feel comfortable telling them what I’m worth or asking them what they’re worth.
Nice, how’d you do that?
I get great comfort owning the smallest house model in my neighborhood knowing many of my neighbors are mortgaged to the hilt to live in theirs. I own my 2 nice cars rather than leasing various luxury brands.
The approach in The Hidden Path to Manifesting Financial Power ebook is mind-blowing. Feels like I've stumbled upon the ultimate shortcut to wealth!
Man i would have loved to participate in that survey. Above average but not mutant lvl. Yet.
Buy the cheapest house in the best neighborhood that you could afford the best house.
We are absolutely not richer than our friends. One couple is older than us and never had to pay for their only child's 3 college degrees. Another couple had the wife's parents purchase a house for them.
What degrees?
@@evr0.904 All three are science degrees. Bachelors from a university that I do not remember. Masters and PHD from MIT.
@IrisP989 Why not just say Ph.D? Rhetorical question btw...
@@evr0.904 I can say what I want and how I want it. You are just looking to fight with a strange.. smh....
Yes I am.
I am richer than my friends. Came from nothing. Had a friend from childhood who is still struggling turn on me and tell me I changed because I invited her on a trip to Europe.
My net worth is 160% higher than that of people in their 60's, and I'm only 40 years old. Zero inheritances, zero windfalls, zero marriages, zero kids, zero college, started investing at 20 in my 401k, I finally figured out how to invest in stocks at age 35, and I've only made $50-60k a year income my entire career.
Guess I'm doing something right. 😆
I'm definitely a proud financial mutant.
Not richer than me, unless your are the .1% ers.
Food for thought
700k+?
Wow, congrats to you on your accomplishment. Just for clarification, when you say 160% of people in their 60s are you talking about mutant 60 yr olds (i.e. $2.5m). If so that puts you at a net worth North of $4m. Doing some quick math based on the info you provided you would be living off less then $3k/month (after 401k max cont, Roth cont, taxes). looking at the max contribution for 401k since 2004 (employer and employee) that would give you $1.1m with a annual rate of return of 10% your total earnings is ~$2.3m so a grand total of $3.4m in your 401k. If you maxed a Roth during that same time the max contributions would have been $112k with same rate of return earning you another $227k for a grand total of $339k. So you total net worth in IRAs is ~$3.8m. Ya, I can see you getting to $4m with some brokerage investments. My suggestion for your before you jump into your retirement is to think about asset location and how your current portfolio might need some massaging to better position you financially. Specifically if a majority of your assets are in tax deferred accounts/locations (aka 401k) you might consider shifting your future contributions to tax free options (i.e. Roth and/or Health Savings Accounts) or other non tax deferred investment vehicles. There are way too many 401k millionaires who get enamored with the statement balances and forget that that balance has yet to be taxed. 401k withdrawals count as Ordinary Income, so they will be taxed at the marginal tax rate with could be in the +20% range for many. Additionally the withdrawals could also impact healthcare tax (IRMAA) and brokerage Capital Gains (Net Investment Income). I for one wish I had routed some of my 401k to Roth and HSA earlier or at least built up a larger cash reserve.
My immediate non married friends? Yes. My Married friends? Sometimes. My old friends I haven't seen? No.
You should do the net worth with home equity removed
Does it really matter, yes and no! I don’t want to be richer than my friends, but I want to surround myself with people who can make me smarter about managing my finances.
I used to say in my classes if nine of your friends are broke, it’s good bet you are going to broke also.
Preaching to the choir
It is really disappointing that so many comments are removed from this comment section. I just want everyone to know this is an echo chamber, and my thoughts at least are not fully represented. How many other knowledgeable commenters are being censored?
My friends know I have money but they know I'm hoarding it in retirement accounts so I'll never touch it haha
Yeah I’m probably richer than more than half of my friends. But I definitely look poor because I don’t care much for material things. I save and invest a lot to give my family a better life, not to buy a bunch of stuff.
i’d love to have graduated with less debt than a years worth of salary but even after getting good scholarships and going to community college there was no way i was getting out with less than 50k 😂 sure that’s the ideal but i graduated with 140k in 2019 - down to 100k, paying it off in 2032 at the latest by my calculations 😂😂
some peoples parents can’t pay for airfare and housing for them to go to the cheapest state school they can find