Everything is relative in life. Let's take a random number, say $80K /year. You've got some people who would be like "how could you even live on that? That's nothing." You'd have other people who would say "I wish I made that much, 80K/year would change my life!" It depends on your expectations and lifestyle, where you live, whether you have kids, and a lot of other factors. Ultimately, the important thing is to be able to make more than you spend, have money leftover to invest, and not feel financially stressed all the time.
Completely agree. One huge indicator is where you live. San Francisco or a small town or Ohio? That determines if your income needs to be 7 figures or 5 to support a middle class life.
Hi Kelly, if you read this, don't stress about it. You're just out of school finding your feet as an adult in the workplace. I made $30k a year when I was your age. Now I make substantially more. Make a plan for the future yes, but not because you are doing bad, but because you have lots of wonderful things to accomplish.
Crazy, I remember first seeing your videos like ten years ago go because I was a big lotr fan as a kid and grew up with legos. Seeing you pop up again now that I’m 24 watching Ramsey is pretty cool.
She is below average for all income earners, yet they never mentioned that this is is her first career type of job out of school. For 22-24 year olds she is still making above the average. She is clearly off to a great start
But dave mentions the avarege is 78k household while comparing her individual income. It doesnt make sense you cannot compare and individual income with a household can you?
Depends on what lifestyle you want. It's more about staying within budget than income. I know people who make $40k/year who own a cheap apartment and people who make $80k who are living paycheck to paycheck as a renter.
@@taylorhirschmusic Nah Just My opinion, I just actually realized how if your not making enough money you need to invest more of that money into yourself first before the stock market or just hoarding it even though that's not so bad but it's better to be investing in yourself, However it's no wrong or right way ❤️💯
To be that young, educated, debt free, and saving $1100 per month, you are doing good. Keep thinking about short and long term goals, and keep the hustle. You have a bright future.
Slight adjustment. It’s what you said, assuming that you are living a lifestyle that you would be comfortable/content living forever. If you’re properly saving but unhappy with your means, you’ve gotta make more.
$20 an hour at 45 hours a week, understanding that may not be average hours, with time off still probably equates to 45-50 K a year. She clears 36. I would say for a single person at age 23, that may not be on the low side.
I was looking for this comment. That is exactly what I said, a household usually implies two earners. That would put her right on target as a single earner.
Exactly! No idea what Ramsey smoked but he literally compared a single income to a double income... Plus she said 36k after taxes, not before, so she's earning more and it also depends on the location where she's living...
@@arcelivezBecause a household has one housing payment. They often cook one larger shared dinner (so less energy use), they’re only heating or air conditioning one space etc. If you’re single, you potentially are spending a lot more money to survive.
a good income depends on what lifestyle you want...if your life costs a lot you need a great income if you live modest you can do it with a good income lol...Doesnt matter what you make as long as your happy with your life and pay all your bills and can still save a little on the side..
She is doing good to start out. She just have to make minor adjustments. But 23 saving for a house? Impressive. She might get that to 40-45k after taxes in 2 years. Mad respect for her. Especially if she is good people
I went to "ministry school" over 20 years ago (got a BA in biblical studies) and I've only ever done "volunteer" ministry. There's absolutely nothing wrong with that, Paul was a tentmaker, too. Sure "the worker is worthy of his wages" - there's nothing wrong with making an income from ministry, but Paul is quick to point out that he didn't, in order to stay above reproach. Sometimes working in ministry and taking nothing in return while supporting yourself through other means is the higher path, just depends on what God's calling you to.
I also got a BA in Biblical Studies. Currently, I work at a farm store and am a little directionless regarding a career. But I'm so glad I went to Bible school. Even if I never make a dime from it, what I learned was invaluable.
This! I also went to bible college and got a BA in Biblical Studies/Missions and I'm glad I went. I just started a custom cabinetry business (6 years past graduation), but I still get to serve the Lord and others now as a carpenter just as much as I did when I was on full time church staff. Just looks a bit different. Taking nothing in return makes it all the more fulfilling FOR ME. I know it doesn't make a difference to some, but it does for me.
It all depends on what your expenses are. I make anywhere from $90-$100k/yr & it’s decent money. I don’t struggle month to month, I can still do things I want to do, & put money away. Some people say the amount I make would change their life. And while I will say it’s nice not to struggle, my income is not enough to live some kind of lavish lifestyle. You can afford to live a modest life, have a decent place, decent car, & enjoy fun experiences, but $100k doesn’t go as far as you’d think. I still have to be mindful of spending.
Bro in certain states yes. But I’m at $85K+ and have a house paid off. Three cars paid off. And I’m about to but a bigger rental cash and rent out the other side. I did this on a $70K-80K salary the last four years. My expenses are $6300 a year. I save all my salary. You can do a lot if you in a low cost state. Relocate if you have to
I make close to what you make and I feel similarly. I can save a good chunk per month, but I plan on putting that away for a house or car. I feel like 120K and up has more room for a cushy lifestyle. I feel like you could save a lot and live more lavishly. It all depends if you live in a very high rent area or not though
It’s all relative. I was making $93k living in a rural area working my job remotely and was living like a king. When they announced return to office I had to move back to the city and my rent doubled. Now I’m paycheck to paycheck even with a “good” income
I agree. A better comparison is the average income of individual college students in their first 5 years after graduation. There are some that land jobs with amazing starting salaries, but there are many others who's careers need time and experience to advance their income.
@@Teamshmo thank you!!!! Yes I agree household income is very different then individual income where I am at making 20 an hour is very difficult. Now a married couple making that that is 40 an hour 80k a year. Even then I dont think that there are jobs giving away 80k a year or 90k a year just like that.
I think it’s good to compare if you want to give good advice. Like if you’re single, your household is just your income. Most things you do, are going to be compared against households, not the individuals. But I also agree that comparing households to individuals doesn’t work well. It only works well to show what you need to survive solo.
It’s about lifestyle choices, if you spend frivolously then you’re going to require a larger income but if you live within your means then in my opinion that is a smarter way to go!
@@ryant2568 she worked four jobs during ministry school to pay for tuition. now, she's working one job, and depending on the state, she's making at a minimum $50k, and maximum $70k. debt free making between $50k-$70k is ahead of most americans.
Great job. My wife and I are self employed truck drivers. Our equipment, truck and trailer, have no debt on them. The company earns around 200k and we take winters off. We pay ourselves only about 20k but yet the business puts away about 30k into retirement. That will increase this year as I start drawing social insecurity. All of that income will be put into retirement as we only have 25k in our retirement plan. This is our 10 year fast track to retirement adventure. Keep up the great work and keep the discipline intact.
I started selling my AMD shares that I bought for $12 back in 2018 and i am sitting on roughly about $300k. Am i better off putting the money somewhere else or sit out and wait for a correction?
Thats when you hire someone to manage your money. You need a financial-advis0r straight up! Even while $300k might seem like much, one bad decision might seriously deplete it.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 30% in 2023.
@@roberttaylor662 Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
Kelly, I am 40 and have a career in full time vocational ministry, went to seminary for an MDiv for 4.5 years (slow I know) and I never made more than what you make now until about age 30. If you are sticking with the vocational ministry route, keep budgeting and following the Baby Steps, continue staying away from debt, and continue praying about your career path and networking with people and you'll be fine. You might end up staying bi-vocational, and you might find a ministry opportunity where you don't need to work a second job financially speaking. Our household (my wife and I) never broke into the 6-figure income category until this year, 2024. We are on Baby Step 6 and plan to be on Baby Step 7 in 1.5 years from now. Slow and steady wins the prize, and don't feel guilty for building wealth eventually, but use that wealth for generosity and ministry.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@ClarieZwiehoff Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
Key is disposable income. She is probably saving alot more than some who are earning double and then some. All about financial discipline and not reaching for those credit cards
I’m starting to really be confused about the new people that’s been on the Dave Ramsey show and are questioning other peoples journeys stay on the financial journey. Thank you.
For most people, it's not about the income, but how they budget and save. I make $100k (well above people around the area), but living almost paycheck to paycheck at the moment. I'vs seen people making $60k and have few thousands saved on top of emergency fund.
They are saving a ton a month and clearly have worked hard to get to this point. I am sure they will do well in life no matter what they decide to do next
This was a horrible answer. She was making $20 /hr 45 hours a week. That’s high 40’s. She told them her NET. Now I don’t think the average NET is 70’s. I feel Ramsey Solutions gets gross and net mixed up way too often.
To be fair, these are in-the-moment conversations and frequently the caller is confused themselves. It can be hard to read into what people are saying.
@@pamelaburleson2063 but they should be savvy enough to distinguish gross v net. It bothers the hell out of me. If she was netting 36000 but maxing out her IRA and living in a cheap area, that’s not bad. ESP at her age. Mean household income in many cases 2 incomes (family).
My neighbor just said if he needed a new roof he would take out a home equity loan. He makes good money. I heard your voice in my head saying that’s a middle class move!
Same here in the UK loads of people remortgage just to go on holiday or put it on the credit card I always think it can be a risky game because how easy credit is given
I went from making 28k to 145k in 3yrs. I live in NYC and I made 145k last year hustling for OT and travel assignments and Saturday shifts. I feel like I need to make 50k to feel like I have a cushion. Wish life was not auch a grind. That being said, I know I am blessed to be in my situation. Everyone just keep hustling.
I make the same amount after taxes and if was debt free I would have $1000 per month to save and still be able to invest in my 401k up to the company match. I am in a 2 income household in a city where the cost of living is fairly low. If I was living alone I probably wouldn't have the $1000 per month to save.
It is not about how much the income is. It's how you manage it. Its perception of what you find valuable. What makes you happy. What fulfills you. You Dave Ramsey your opinion is just that, it's your opinion. Just because you say people need to make a certain amount does not make it the perfect amount. What makes it the perfect amount is are they happy, fulfilled and are they making it work. Paying cash and saving. Everyone has a different perception of life. When a person is dying it doesn't matter if they leave a single penny for family. All that matters is that they lived a good honest life, and the joy that they are now with God.
I'll probably die with gold and silver buried somewhere and nobody will find it and people will think that I was broke. LOL 😂 you're 100 percent correct. Just because you make it doesn't mean you need to spend every dime.
To afford a good life you need to make 150k plus. This will get you in most places a nice house, cars paid, investment for retirement, and enough money to be comfortable with kids/vacations. If you arent clearing 200k a year combined, you likely will always be struggling throughout life.
The entire economic landscape changed over the last few years. Up until the mid 2000s, a 100k salary meant you could afford a nice lifestyle. Today, you would need around 250k to afford the same lifestyle. Last year I made around 300k and it doesn’t feel that much different than when I made 70-80k 10 years ago.
Back in the 1990s there was a study of what level of income would make people relatively happy. That income was $50,000 per year. There is in fact an income threshold that will make your life significantly easier.
I would be miserable if I made less than several times that amount. The dollar doesn’t have nearly as much buying power today as it did in the 1990s. Even then, I needed a lot more.
I think all young people go through this when they start to budget so here some insight from what I have learn: Right out of high school or college don't expect to make "median income" that include people in their 20s, 30s, 40s, 50s, 60s, not to mention people in densely populated cities like NY or LA skew the number higher due to higher cost of living raise wage pressures. Also, those include people who works longer hours, normalized for 40 hours they would make less. So the "average" person in your area is closer to 34-45 in age with at least some college. Middle class is within 80% of average in your area and its simply mean, from the income alone you should be able to live comfortably. As for budgeting if you are properly investing at an early age about 4k-6k,including 401k match, for 7-14 years you can reasonable expect your ROI to more then make up for "low income". I say in your 30s its sort of hard not to make okay income if you got a clean record and a lack of criminal background.
Income isnt the whole story...its how you mange it. I know clowns making 200k+ that have little to show for it but a ton of debt. Learn to manage your money well and as you make more you will be in a good place if you keep up at it.
I can't even imagine making 200k, but then also being in debt and unable to "afford" living with that kind of money is remarkable. Maybe it's time for some of those people to eat a humble pie, live somewhere less expensive on a lower income or I dunno, sell some stupid stuff they own to pay off other stupid stuff they have or crazy debt
This is the best advice. I make 200+ currently (i wont forever, not bragging) and don’t get me wrong I’m disciplined and I save a lot, only debt is my low 2.85% fixed mortgage, but the lifestyle creep is real and must be actively avoided. Family of 4, it should be a good life for anyone who isn’t a dummy but you’re not the Rockefeller’s these days either.
By me its very expensive. 50k is okay. Its not good, but its not bad. Youll barely scrape by on that. You will have to budget carefully. 60k is when i say youre good. A studio by me is at least 2,000 thats assuming you get a good deal. So around 25k will go straight to living. 10k for food, phone, and clothes assuming you budget correctly. 5k for a car(gas, maintenance, insurance, etc).
She said she make $20 an hr working 45 hours a week. $20 x 45hrs = $900. $900 x 52 = $46,800. That doesn't take into consideration her 5 hours overtime per week. She's making close to $50k a year. The ntl "household" income is $78k. That usually means 2+ people. I'd say shes doing alright.
I'm favoured, Getting my own Truck has always been my Dream for my business. I just acquired 2 recently, earning $18K weekly was really helpful. I can now give back to the locals in my community and also support Charity Organizations.
Good question.. Sometimes I think it depends on what type of lifestyle you want.? You may not be a high income earner but you have no debt, but don’t have a lot disposable income. The other extreme is, you can be rich and be broke.
I remember a survey was done where they asked people from all ranges of income; "how much more income would you need to make you happy?" All the answers were the same, "just 10% more".
She sounds like she's doing OK but she's a far cry from "killing it." There are 23 yo engineers making $100k fresh out of college. Dave told her right. Young folks also need to focus on increasing income because earnings at that age could impact the rest of your life.
It doesn't feel long ago, but I remember when I made it to $35,000 I was feeling quite ecstatic. It was about 9 years ago now. Then I learned that all the broke people around me were making much more than I was.
God said trust in him and he will provide your needs. He never said your wants. My grandma and grandpa told me in 1970 no where in the Bible does it say we retire we are to live happily with in our means I was 6 then I’m 60 now and I still remember and live that way
Happy is way more important that the "low" income worry to me. When you don' have debt the "low" income is not that "bad" if you're happy with what you're doing for living and if you can live your life that way. People in the ministry are happy for the most part but that can be any regular job. The problem is when you have dept and or you don't like your job that low income becomes even worst.
Dave is not correct. The MEDIAN household income is about 75K. For family households it is 95, and for non-family households it is about 45, so she is not that far off.
Her single income is $20/hour and she works 45 hours a week. That comes out to $49,000/year. The average household income is $78,000/year, or $29,000/year more than she’s earning by herself. If she was married to someone earning the same amount that she’s earning their household income would be comfortably above the average. I’d say she’s doing great! Especially at 23!
@@raymond_sycamore yes I agree.... making 80k is very difficult let alone 100k. I think it a six figure salary is rare to the exceptions of big urban cities
@@dianabenavides2913 the big urban areas don’t pay you that much more. High income earners usually have their own businesses, no matter location or profession.
@@raymond_sycamore mind boggling to me that someone can survive on that income. I’m 29, I live in a city in TN. Cost of living has risen but it still isn’t terrible like in other large cities. I make $90k+ & still feel like I don’t make enough. Don’t know how people make it on $40k.
@@treidkr3 Move. People are just going to have to start moving. I moved to a small town in Ohio and I spent $18k last year to exist. I own my house outright here. There's nothing about my life that I don't have that I wouldn't have in a big city.
Is this $78k the average income per person, or per household? If two married people are making $20/hr EACH starting out, that can offer a decent lifestyle for a couple, HOWEVER, if you live in a high cost area...
What's truly relative is the cost of living where you are. I make 40k yr with the state plus retirement and benefits etc. I'd be poor in California yet I'm middle class in my small town in Eastern NC
Damn, I make $104k/year base and my goal each month is to save around $1-1.2k/month for a down payment for a home. Don’t worry I invest in my Roth and 401k on top of that, but still impressive that she can do that making what she makes.
Her income is above average for her age. She’s got a great head on her shoulders and is financially literate at a very young age. There’s no reason to have any sort of negative spin on this.
There is plenty of information about income relative to age on the web. That might be more useful than the average (median not mean) income for all ages.
Y'all did not read this note carefully. They make 36k after taxes. So this person is actually earning about 45k a year. Also household income is not for an individual. It's for the household. That's assuming lumped incomes for many multi -person households. Therefore 76k per household is not a comparable measure to one person's 45k salary. For a 23-year-old just out of college I would not call this a low salary, especially if the cost of living for this person is low.
The average annual salary across the U.S. is $59,428. If she is only making $36,000 and can save $1100 a month she is obviously living at home. With a college degree that is embarrassingly low. $36k/yr is $17.30 per hour before taxes. Luckily, she doesn't have student debt.
I’ve never understood the general income numbers when Cost Of Living varies greatly across different areas of the US. For example, If I make 100K in rural TN in my current position, most consider this fairly good in my area, but for my same career, my peers would laugh at anything less than 150-175K in CA.
It's a bit unfair to compare her single income with the average household income. She's probably slightly less than average as a single income earner but I'm not sure if considerably less like Dave is putting it.
Yeah, I don't know why the statistic always thrown around is "average household income." It can be confusing and misleading for this very reason. I think a much more useful stat for people would be "average individual income."
Agreed. She's also younger than average. Her income at 43 would be worse than her income at 23. She will burn out doing 4 jobs though. That is not sustainable especially as she gets older.
The statistics should seperate individual income vs household income. There not many jobs out there giving out 80k. Even for those with a career it is extremely difficult to make 80k.
I use to say it if I could make $60k a year I’d be set. I now make $90k and I feel broke. That being said, it’s all about how you live. When I made 40k I was much more conservative than I am now. It’s all discipline
She is absolutely making the average. She makes 36. Household average is 72. She makes half of the household income. If she had a second income they would be right at 72 in the house
Is she sharing housing right now or living with someone for free? That's good 4 now but when she buys a house or cindo, she will also needs lots of maintenance money.
Kelly is doing a great job, and almost certainly saves more per year than many others with incomes exceeding $100,000. However, it will still be a long slog to get ahead saving $1,100 per month. I'd say a reasonable goes is to get that savings up to $3,000 per month within a decade. Now, you are able to save $100,000 every 3 years and your investments can gain huge momentum at that rate.
A good income is one that you can afford the median household prices in your area, afford gas and grocers, afford to put away 15% of your take home for retirement, and afford to support a family. nationally to do those things its about 100-120k. math is math Dave
IMO an average family of 4 with two payed off decent vehicles and a mortgage is going to need to make a combined 120k a year to be able to get the most out of life. After that the percentage in which money is able to do things for you that moves the happiness scale goes down drastically.
I am graduating college in May and have a job lined up that’s work from home and will be making 100k a year pre tax. Do I live at home and pay off all my debt over the next couple years? I’m 100k in debt from it, so I was thinking I have the opportunity to live at home for the next few years so I won’t have to pay rent. I then plan on saving to get property before I move out. I’m not really sure if I should focus on solely paying off all my debt before I try to invest any of that money elsewhere. I’d love some of you to give me some advice because I know for a 23 year old 100k is a lot of money to be making right out of the gate.
A "good" income is going to be different for every person and it comes down to your lifestyle and location. the only issue I see here is she mentioned she wants to buy a house. The maximum you can ever borrow for a mortgage (we don't all have David Ramsey money) is 40% of your income so that gives you a maximum of $1200 per month for a mortgage or a borrowing capacity of around $200K. I assume a 23-year-old doesn't need much but that won't even get you a 1-bedroom in most cities today.
Average household income is 78… two people in a household means average individual income is 39. Before or after taxes, she’s not low, she’s average, according to Dave’s own stats.
I wouldn’t worry about average household income as a single person since that normally encompasses two or more incomes in that average. Hence household.
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Everything is relative in life. Let's take a random number, say $80K /year. You've got some people who would be like "how could you even live on that? That's nothing." You'd have other people who would say "I wish I made that much, 80K/year would change my life!" It depends on your expectations and lifestyle, where you live, whether you have kids, and a lot of other factors. Ultimately, the important thing is to be able to make more than you spend, have money leftover to invest, and not feel financially stressed all the time.
If today you say it’s never enough, you’ll always have enough in the future.
Completely agree. One huge indicator is where you live. San Francisco or a small town or Ohio? That determines if your income needs to be 7 figures or 5 to support a middle class life.
I can’t live on that where I live. It is low income in orange county, california. But it is a good income in a lot of other states
Why say something so obvious
yeah they should eat bugs
Hi Kelly, if you read this, don't stress about it. You're just out of school finding your feet as an adult in the workplace. I made $30k a year when I was your age. Now I make substantially more. Make a plan for the future yes, but not because you are doing bad, but because you have lots of wonderful things to accomplish.
Crazy, I remember first seeing your videos like ten years ago go because I was a big lotr fan as a kid and grew up with legos. Seeing you pop up again now that I’m 24 watching Ramsey is pretty cool.
@@noahscott8218 thanks! Being a freelancer, I have to be money smart to stay alive. So I often listen to Dave while I animate.
She is below average for all income earners, yet they never mentioned that this is is her first career type of job out of school. For 22-24 year olds she is still making above the average. She is clearly off to a great start
But dave mentions the avarege is 78k household while comparing her individual income. It doesnt make sense you cannot compare and individual income with a household can you?
That is true
@@dianabenavides2913yeah, $78k/2=39k so she is only slightly bellow average individual income.
@@dianabenavides2913household and combined income are two different things.
@@dianabenavides2913there are single person households.
Shorty is killlllling it saving $1.1k/mo on that income omggggggggg
It’s not all about what you make, it’s more about what you owe, 36k no debt, is better than 136k living off of credit cards
It doesn’t have to be either
Depends on what lifestyle you want. It's more about staying within budget than income. I know people who make $40k/year who own a cheap apartment and people who make $80k who are living paycheck to paycheck as a renter.
Good, owning an apartment is stupid
At 21 I was making 27k and blowing it while moving at home. She is off to a fantastic start.
I just want to add it’s not about how much you “make” it’s how much you “keep”!
Yes
I believe it matters how much you make.
@@taylorhirschmusic Nah Just My opinion, I just actually realized how if your not making enough money you need to invest more of that money into yourself first before the stock market or just hoarding it even though that's not so bad but it's better to be investing in yourself, However it's no wrong or right way ❤️💯
To be that young, educated, debt free, and saving $1100 per month, you are doing good. Keep thinking about short and long term goals, and keep the hustle. You have a bright future.
A good income is one that allows you to be under 50% of spending on needs while saving at least 15% for retirement.
I think this is one if the best answer. The answer has to be relative. I don't like or think it's correct to give it a an actual absolute number.
Slight adjustment. It’s what you said, assuming that you are living a lifestyle that you would be comfortable/content living forever. If you’re properly saving but unhappy with your means, you’ve gotta make more.
$20 an hour at 45 hours a week, understanding that may not be average hours, with time off still probably equates to 45-50 K a year. She clears 36. I would say for a single person at age 23, that may not be on the low side.
My thing is he’s saying the avg income of a household is 78K usually that means two people
Yup, plus 78K is different in NY vs TN.
I was looking for this comment. That is exactly what I said, a household usually implies two earners. That would put her right on target as a single earner.
I was just thinking that as well. If you're living in the Midwest, away from a major city, making $78k a year is really good!
Exactly! No idea what Ramsey smoked but he literally compared a single income to a double income... Plus she said 36k after taxes, not before, so she's earning more and it also depends on the location where she's living...
@@arcelivezBecause a household has one housing payment. They often cook one larger shared dinner (so less energy use), they’re only heating or air conditioning one space etc.
If you’re single, you potentially are spending a lot more money to survive.
a good income depends on what lifestyle you want...if your life costs a lot you need a great income if you live modest you can do it with a good income lol...Doesnt matter what you make as long as your happy with your life and pay all your bills and can still save a little on the side..
Amen brother
She is doing good to start out. She just have to make minor adjustments. But 23 saving for a house? Impressive. She might get that to 40-45k after taxes in 2 years. Mad respect for her. Especially if she is good people
I went to "ministry school" over 20 years ago (got a BA in biblical studies) and I've only ever done "volunteer" ministry. There's absolutely nothing wrong with that, Paul was a tentmaker, too. Sure "the worker is worthy of his wages" - there's nothing wrong with making an income from ministry, but Paul is quick to point out that he didn't, in order to stay above reproach. Sometimes working in ministry and taking nothing in return while supporting yourself through other means is the higher path, just depends on what God's calling you to.
I also got a BA in Biblical Studies. Currently, I work at a farm store and am a little directionless regarding a career. But I'm so glad I went to Bible school. Even if I never make a dime from it, what I learned was invaluable.
This! I also went to bible college and got a BA in Biblical Studies/Missions and I'm glad I went. I just started a custom cabinetry business (6 years past graduation), but I still get to serve the Lord and others now as a carpenter just as much as I did when I was on full time church staff. Just looks a bit different. Taking nothing in return makes it all the more fulfilling FOR ME. I know it doesn't make a difference to some, but it does for me.
It all depends on what your expenses are. I make anywhere from $90-$100k/yr & it’s decent money. I don’t struggle month to month, I can still do things I want to do, & put money away. Some people say the amount I make would change their life. And while I will say it’s nice not to struggle, my income is not enough to live some kind of lavish lifestyle. You can afford to live a modest life, have a decent place, decent car, & enjoy fun experiences, but $100k doesn’t go as far as you’d think. I still have to be mindful of spending.
Bro in certain states yes. But I’m at $85K+ and have a house paid off. Three cars paid off. And I’m about to but a bigger rental cash and rent out the other side. I did this on a $70K-80K salary the last four years. My expenses are $6300 a year. I save all my salary. You can do a lot if you in a low cost state. Relocate if you have to
@@AFrugalMindsetWithBrandonLee What state do you live in?
@@TheUzamaki1234 Virginia
I make close to what you make and I feel similarly. I can save a good chunk per month, but I plan on putting that away for a house or car. I feel like 120K and up has more room for a cushy lifestyle. I feel like you could save a lot and live more lavishly. It all depends if you live in a very high rent area or not though
@@TheUzamaki1234 Virginia I just saw. Yes we know VA not LCOL. But we have very cheap houses
It’s all relative. I was making $93k living in a rural area working my job remotely and was living like a king. When they announced return to office I had to move back to the city and my rent doubled. Now I’m paycheck to paycheck even with a “good” income
Yeah 93k in a city/urban area is very different
Everyone has a price in business or in life, everything is relative just be happy and find what works for you ☺️
Household income vs Single income is like comparing apples to oranges. Just like comparing median income vs average income in the US.
I agree. A better comparison is the average income of individual college students in their first 5 years after graduation. There are some that land jobs with amazing starting salaries, but there are many others who's careers need time and experience to advance their income.
Plus he said the household income is 78k and is usually two people. That means the individual income is basically what she is making
@@Teamshmo thank you!!!! Yes I agree household income is very different then individual income where I am at making 20 an hour is very difficult. Now a married couple making that that is 40 an hour 80k a year. Even then I dont think that there are jobs giving away 80k a year or 90k a year just like that.
I think it’s good to compare if you want to give good advice.
Like if you’re single, your household is just your income.
Most things you do, are going to be compared against households, not the individuals.
But I also agree that comparing households to individuals doesn’t work well. It only works well to show what you need to survive solo.
It’s about lifestyle choices, if you spend frivolously then you’re going to require a larger income but if you live within your means then in my opinion that is a smarter way to go!
She said 36K after tax, that mean she is making at least 50K before tax
She has 4 jobs though.
imagine working every waking moment of your life to just earn $50K.
@@ryant2568 she worked four jobs during ministry school to pay for tuition. now, she's working one job, and depending on the state, she's making at a minimum $50k, and maximum $70k. debt free making between $50k-$70k is ahead of most americans.
She only has one job now. 45 hours a week at $20 an hour.
People who make 50k don't pay 14k in tax.
45x$20x52=46,000
Great job. My wife and I are self employed truck drivers. Our equipment, truck and trailer, have no debt on them. The company earns around 200k and we take winters off. We pay ourselves only about 20k but yet the business puts away about 30k into retirement. That will increase this year as I start drawing social insecurity. All of that income will be put into retirement as we only have 25k in our retirement plan. This is our 10 year fast track to retirement adventure. Keep up the great work and keep the discipline intact.
Did you meant to say, "social insecurity"? If so, that is funny! 🤣
I started selling my AMD shares that I bought for $12 back in 2018 and i am sitting on roughly about $300k. Am i better off putting the money somewhere else or sit out and wait for a correction?
Thats when you hire someone to manage your money. You need a financial-advis0r straight up! Even while $300k might seem like much, one bad decision might seriously deplete it.
Put it in s&p 500 etf. Will be your best decision.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 30% in 2023.
@@roberttaylor662
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
'Bella Mia Darmon' is the advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Kelly, I am 40 and have a career in full time vocational ministry, went to seminary for an MDiv for 4.5 years (slow I know) and I never made more than what you make now until about age 30. If you are sticking with the vocational ministry route, keep budgeting and following the Baby Steps, continue staying away from debt, and continue praying about your career path and networking with people and you'll be fine. You might end up staying bi-vocational, and you might find a ministry opportunity where you don't need to work a second job financially speaking. Our household (my wife and I) never broke into the 6-figure income category until this year, 2024. We are on Baby Step 6 and plan to be on Baby Step 7 in 1.5 years from now. Slow and steady wins the prize, and don't feel guilty for building wealth eventually, but use that wealth for generosity and ministry.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@ClarieZwiehoff Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@ThamaraSchlossarek Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
Key is disposable income. She is probably saving alot more than some who are earning double and then some. All about financial discipline and not reaching for those credit cards
I’m starting to really be confused about the new people that’s been on the Dave Ramsey show and are questioning other peoples journeys stay on the financial journey. Thank you.
For most people, it's not about the income, but how they budget and save. I make $100k (well above people around the area), but living almost paycheck to paycheck at the moment. I'vs seen people making $60k and have few thousands saved on top of emergency fund.
You have to figure out some ways to cut expenses. How much is your car payment?
As a current college student who doesn't know what they want to do...what do you do? If you don't mind me asking of course.
@@Jack-id4qmjust go into sales
I make 50k and save 70-80 percent of my income cause I live at home and have like no expenses
They are saving a ton a month and clearly have worked hard to get to this point. I am sure they will do well in life no matter what they decide to do next
This was a horrible answer. She was making $20 /hr 45 hours a week. That’s high 40’s. She told them her NET. Now I don’t think the average NET is 70’s.
I feel Ramsey Solutions gets gross and net mixed up way too often.
To be fair, these are in-the-moment conversations and frequently the caller is confused themselves. It can be hard to read into what people are saying.
@@pamelaburleson2063 but they should be savvy enough to distinguish gross v net. It bothers the hell out of me. If she was netting 36000 but maxing out her IRA and living in a cheap area, that’s not bad. ESP at her age. Mean household income in many cases 2 incomes (family).
It’s the expenses not the income I had so much disposable income when my outgoing was really low
My favorite is a S&W 66-1 2.5 inch barrel!
Any income is good. You take that job and experience and go apply for a better job. And so forth.
My neighbor just said if he needed a new roof he would take out a home equity loan. He makes good money. I heard your voice in my head saying that’s a middle class move!
Same here in the UK loads of people remortgage just to go on holiday or put it on the credit card I always think it can be a risky game because how easy credit is given
I went from making 28k to 145k in 3yrs. I live in NYC and I made 145k last year hustling for OT and travel assignments and Saturday shifts. I feel like I need to make 50k to feel like I have a cushion. Wish life was not auch a grind. That being said, I know I am blessed to be in my situation. Everyone just keep hustling.
What's your job?
Cool. Wyd for work?
The fact she’s able to save over $1000 a month on that income is amazing
Great budgeting on a small income. When I made that kind of money I was always over budget. Lol.
it really is, good for her.
She probably dont have many bills to worry about
She probably lives with her parents
I make the same amount after taxes and if was debt free I would have $1000 per month to save and still be able to invest in my 401k up to the company match.
I am in a 2 income household in a city where the cost of living is fairly low. If I was living alone I probably wouldn't have the $1000 per month to save.
It is not about how much the income is. It's how you manage it. Its perception of what you find valuable. What makes you happy. What fulfills you. You Dave Ramsey your opinion is just that, it's your opinion. Just because you say people need to make a certain amount does not make it the perfect amount. What makes it the perfect amount is are they happy, fulfilled and are they making it work. Paying cash and saving. Everyone has a different perception of life. When a person is dying it doesn't matter if they leave a single penny for family. All that matters is that they lived a good honest life, and the joy that they are now with God.
I'll probably die with gold and silver buried somewhere and nobody will find it and people will think that I was broke. LOL 😂 you're 100 percent correct. Just because you make it doesn't mean you need to spend every dime.
To afford a good life you need to make 150k plus. This will get you in most places a nice house, cars paid, investment for retirement, and enough money to be comfortable with kids/vacations. If you arent clearing 200k a year combined, you likely will always be struggling throughout life.
Bring lots of value and a great income will find you ❤
If only that were true for our essential workers
"Relative to expense of necessities of life" is as important as ( if not more so ) "relative to national avaerage".
The entire economic landscape changed over the last few years. Up until the mid 2000s, a 100k salary meant you could afford a nice lifestyle. Today, you would need around 250k to afford the same lifestyle. Last year I made around 300k and it doesn’t feel that much different than when I made 70-80k 10 years ago.
its not about what you earn its what you can keep. as long as you can live below your eans youre fine
In > Out... figure out your expenses (out)... an income greater than that is a good start...
Back in the 1990s there was a study of what level of income would make people relatively happy.
That income was $50,000 per year. There is in fact an income threshold that will make your life significantly easier.
I would be miserable if I made less than several times that amount. The dollar doesn’t have nearly as much buying power today as it did in the 1990s. Even then, I needed a lot more.
@@johnmartin4641That’s you lol. Some people don’t need much to be happy.
For most it's around 85k
@@carryeveryday910 even if that’s true, $50k per year today is nothing compared to what it was in the 90s. Not even remotely the same lifestyle.
Back then I don’t think jobs were as competitive. If you’re working 996 I don’t think there is any money that would make you happy.
I think all young people go through this when they start to budget so here some insight from what I have learn:
Right out of high school or college don't expect to make "median income" that include people in their 20s, 30s, 40s, 50s, 60s, not to mention people in densely populated cities like NY or LA skew the number higher due to higher cost of living raise wage pressures. Also, those include people who works longer hours, normalized for 40 hours they would make less. So the "average" person in your area is closer to 34-45 in age with at least some college. Middle class is within 80% of average in your area and its simply mean, from the income alone you should be able to live comfortably.
As for budgeting if you are properly investing at an early age about 4k-6k,including 401k match, for 7-14 years you can reasonable expect your ROI to more then make up for "low income". I say in your 30s its sort of hard not to make okay income if you got a clean record and a lack of criminal background.
Income isnt the whole story...its how you mange it. I know clowns making 200k+ that have little to show for it but a ton of debt. Learn to manage your money well and as you make more you will be in a good place if you keep up at it.
I can't even imagine making 200k, but then also being in debt and unable to "afford" living with that kind of money is remarkable. Maybe it's time for some of those people to eat a humble pie, live somewhere less expensive on a lower income or I dunno, sell some stupid stuff they own to pay off other stupid stuff they have or crazy debt
This is the best advice. I make 200+ currently (i wont forever, not bragging) and don’t get me wrong I’m disciplined and I save a lot, only debt is my low 2.85% fixed mortgage, but the lifestyle creep is real and must be actively avoided. Family of 4, it should be a good life for anyone who isn’t a dummy but you’re not the Rockefeller’s these days either.
By me its very expensive. 50k is okay. Its not good, but its not bad. Youll barely scrape by on that. You will have to budget carefully. 60k is when i say youre good. A studio by me is at least 2,000 thats assuming you get a good deal. So around 25k will go straight to living. 10k for food, phone, and clothes assuming you budget correctly. 5k for a car(gas, maintenance, insurance, etc).
She said she make $20 an hr working 45 hours a week. $20 x 45hrs = $900. $900 x 52 = $46,800. That doesn't take into consideration her 5 hours overtime per week. She's making close to $50k a year. The ntl "household" income is $78k. That usually means 2+ people. I'd say shes doing alright.
I'm favoured, Getting my own Truck has always been my Dream for my business. I just acquired 2 recently, earning $18K weekly was really helpful. I can now give back to the locals in my community and also support Charity Organizations.
God bless you more abundantly for your generousity
I'm genuinely curious to know how you earn that much weekly
Big thanks to Elizabeth Marie Hawley
She's a licensed broker here in the states 🇺🇸
Her top notch guidance and expertise on digital market changed the game for me
For Ohio and debt free you're doing great 👍
Good question.. Sometimes I think it depends on what type of lifestyle you want.? You may not be a high income earner but you have no debt, but don’t have a lot disposable income. The other extreme is, you can be rich and be broke.
It all comes down to comfortability. Some people can be comfortable and make due with 36k and some with 75k.
I remember a survey was done where they asked people from all ranges of income; "how much more income would you need to make you happy?" All the answers were the same, "just 10% more".
The art isn't in making money, it's saving it
They are so wrong here its all about the margin. Not about how much you make but how much you keep. She is killing it at 23.
Wrong. That is how bosses can get away with paying you a low income.
Totally agree. When you start from a place of absolutely no debt, you can achieve a pretty good monthly margin on even a modest income.
She sounds like she's doing OK but she's a far cry from "killing it." There are 23 yo engineers making $100k fresh out of college. Dave told her right. Young folks also need to focus on increasing income because earnings at that age could impact the rest of your life.
Yea until a pregnancy happens, hopefully she’ll be married to someone with high income. Kids change everything 😅
"Killing it" is a wild stretch. But good for her having margin on $36K
It doesn't feel long ago, but I remember when I made it to $35,000 I was feeling quite ecstatic. It was about 9 years ago now.
Then I learned that all the broke people around me were making much more than I was.
The more some people make, the more they want to spend. God said to keep yourself small.
God said trust in him and he will provide your needs. He never said your wants. My grandma and grandpa told me in 1970 no where in the Bible does it say we retire we are to live happily with in our means I was 6 then I’m 60 now and I still remember and live that way
Happy is way more important that the "low" income worry to me.
When you don' have debt the "low" income is not that "bad" if you're happy with what you're doing for living and if you can live your life that way.
People in the ministry are happy for the most part but that can be any regular job.
The problem is when you have dept and or you don't like your job that low income becomes even worst.
Household is the 78k figure. Individual is around 40k so they are not far off
Dave is not correct. The MEDIAN household income is about 75K. For family households it is 95, and for non-family households it is about 45, so she is not that far off.
Good point
The misunderstood the numbers on this call: she’s making $36K AFTER taxes! With her job paying $20/hr at 45hr/wk she’s making about $45K gross.
$78k - the relative average - is a household income before taxes. Her $36k is for a single person after taxes. They are closer than Dave implies
Way closer. She is probably making 50-55k gross which is above the median for individual income. Dave and Ken are completely wrong here.
@@knightfox4121had a feeling something was off
@@knightfox4121 Agree!
Her single income is $20/hour and she works 45 hours a week. That comes out to $49,000/year. The average household income is $78,000/year, or $29,000/year more than she’s earning by herself. If she was married to someone earning the same amount that she’s earning their household income would be comfortably above the average.
I’d say she’s doing great! Especially at 23!
20x45x52=46.800
@@devilskitty5032 You forgot about overtime.
Exactly..people forget that the average ‘household’ is 2.6 people. 78k / 2.6 = 30k per person
I am confuse the avarege household income? Means husband and wife make 78k? So what about the avarege individual income?
Average single American male still only makes about $41k
@@raymond_sycamore yes I agree.... making 80k is very difficult let alone 100k. I think it a six figure salary is rare to the exceptions of big urban cities
@@dianabenavides2913 the big urban areas don’t pay you that much more. High income earners usually have their own businesses, no matter location or profession.
@@raymond_sycamore mind boggling to me that someone can survive on that income. I’m 29, I live in a city in TN. Cost of living has risen but it still isn’t terrible like in other large cities. I make $90k+ & still feel like I don’t make enough. Don’t know how people make it on $40k.
@@treidkr3 Move. People are just going to have to start moving. I moved to a small town in Ohio and I spent $18k last year to exist. I own my house outright here. There's nothing about my life that I don't have that I wouldn't have in a big city.
I live in California, I’d be homeless on the streets if I made $36k a year.
And then you would get a place for less than $12k a year.
@@MeatballMedic How do you get that ?
Is this $78k the average income per person, or per household? If two married people are making $20/hr EACH starting out, that can offer a decent lifestyle for a couple, HOWEVER, if you live in a high cost area...
Household, they never properly addressed this. Big difference.
What's truly relative is the cost of living where you are. I make 40k yr with the state plus retirement and benefits etc. I'd be poor in California yet I'm middle class in my small town in Eastern NC
Damn, I make $104k/year base and my goal each month is to save around $1-1.2k/month for a down payment for a home. Don’t worry I invest in my Roth and 401k on top of that, but still impressive that she can do that making what she makes.
Her income is above average for her age. She’s got a great head on her shoulders and is financially literate at a very young age. There’s no reason to have any sort of negative spin on this.
Shouldn't we use average household income in the town you live? The average for the town I live in is about $50,000 for example.
$36k sucks for working 45 hours.
that's take home (after taxes)
That’s $60,000/yr gross for a single earner with benefits/retirement deductions.
@@blakecarpenter8171yep, no idea what they are talking about. A lot of people would be happy with those metrics
@@Madchris8828 not in high cost cities.
There is plenty of information about income relative to age on the web. That might be more useful than the average (median not mean) income for all ages.
I was owing a loan of $200,000 to my bank, no longer in debt after I invested $60,000 and got my payout several times for the past 2 months.
A good income is an income that doesn’t go straight out as soon as it comes in.
Kind of insane she can save over 1k on tat income. props
Y'all did not read this note carefully. They make 36k after taxes. So this person is actually earning about 45k a year. Also household income is not for an individual. It's for the household. That's assuming lumped incomes for many multi -person households. Therefore 76k per household is not a comparable measure to one person's 45k salary. For a 23-year-old just out of college I would not call this a low salary, especially if the cost of living for this person is low.
The average annual salary across the U.S. is $59,428. If she is only making $36,000 and can save $1100 a month she is obviously living at home. With a college degree that is embarrassingly low. $36k/yr is $17.30 per hour before taxes. Luckily, she doesn't have student debt.
It also depends on where you live. I live ina rural area where what she makes would be considered a "good income."
I’ve never understood the general income numbers when Cost Of Living varies greatly across different areas of the US.
For example, If I make 100K in rural TN in my current position, most consider this fairly good in my area, but for my same career, my peers would laugh at anything less than 150-175K in CA.
You are the most tactful of the bunch with Ramsey.
What kind of ministry?
She makes $36K AFTER taxes with ZERO debt and living below her means. She's 23. With her discipline and drive, she's doing INCREDIBLE. Go Kelly!
Plus saving $1100 a month! You go, Kelly!!!
All that has nothing to do with whether her income is good. Which it isn’t.
It's a bit unfair to compare her single income with the average household income. She's probably slightly less than average as a single income earner but I'm not sure if considerably less like Dave is putting it.
Yeah, I don't know why the statistic always thrown around is "average household income." It can be confusing and misleading for this very reason. I think a much more useful stat for people would be "average individual income."
FAIR is a place for clowns and pigs. This is FACT.
Agreed. She's also younger than average. Her income at 43 would be worse than her income at 23. She will burn out doing 4 jobs though. That is not sustainable especially as she gets older.
The statistics should seperate individual income vs household income. There not many jobs out there giving out 80k. Even for those with a career it is extremely difficult to make 80k.
I use to say it if I could make $60k a year I’d be set. I now make $90k and I feel broke. That being said, it’s all about how you live. When I made 40k I was much more conservative than I am now. It’s all discipline
She is absolutely making the average. She makes 36. Household average is 72. She makes half of the household income. If she had a second income they would be right at 72 in the house
I don't think that's how it works. "Average household income" includes households with single-earners.
Average is like 2.4 people per household
@@chazmcgooski83 Average family income in the US is 99k, 33% of that are single earners.
Is she sharing housing right now or living with someone for free? That's good 4 now but when she buys a house or cindo, she will also needs lots of maintenance money.
Kelly is doing a great job, and almost certainly saves more per year than many others with incomes exceeding $100,000. However, it will still be a long slog to get ahead saving $1,100 per month. I'd say a reasonable goes is to get that savings up to $3,000 per month within a decade. Now, you are able to save $100,000 every 3 years and your investments can gain huge momentum at that rate.
A good income is one that you can afford the median household prices in your area, afford gas and grocers, afford to put away 15% of your take home for retirement, and afford to support a family. nationally to do those things its about 100-120k. math is math Dave
IMO an average family of 4 with two payed off decent vehicles and a mortgage is going to need to make a combined 120k a year to be able to get the most out of life. After that the percentage in which money is able to do things for you that moves the happiness scale goes down drastically.
Not what you make, it’s what you save.
It’s not about your income as much as it’s about your expenses and free cash flow.
“The richest person is not the one who has the most, but the one who needs the least.”
For me, 50k after tax, 401k contribution, and health insurance.
I am graduating college in May and have a job lined up that’s work from home and will be making 100k a year pre tax. Do I live at home and pay off all my debt over the next couple years? I’m 100k in debt from it, so I was thinking I have the opportunity to live at home for the next few years so I won’t have to pay rent. I then plan on saving to get property before I move out. I’m not really sure if I should focus on solely paying off all my debt before I try to invest any of that money elsewhere. I’d love some of you to give me some advice because I know for a 23 year old 100k is a lot of money to be making right out of the gate.
A "good" income is going to be different for every person and it comes down to your lifestyle and location.
the only issue I see here is she mentioned she wants to buy a house.
The maximum you can ever borrow for a mortgage (we don't all have David Ramsey money) is 40% of your income so that gives you a maximum of $1200 per month for a mortgage or a borrowing capacity of around $200K.
I assume a 23-year-old doesn't need much but that won't even get you a 1-bedroom in most cities today.
Average household income is 78… two people in a household means average individual income is 39. Before or after taxes, she’s not low, she’s average, according to Dave’s own stats.
Good income in 2015: $60,000 per year
Good income in 2024: $$120,000 per year
Times have changed!
At no point in the 21st century was $60,000 "good".
Good = $125,000+
$100k is solid!
I wouldn’t worry about average household income as a single person since that normally encompasses two or more incomes in that average. Hence household.
The title was greater than the answer given