What do Americans do if they have no health insurance? Do they just let you die because you cannot pay or place you and your entire family into severe poverty? Just wondering since I live in a country where I do not have to worry about that. For me it was more than enough to deal with a sever illness, and gratefulI did not have worry about bills.
If you don't have wealth, you don't have health. Everything that keeps you in good health costs money. Annual checkup? Healthy food? Good medical care if you were hit by a red light runner? Cleaning your teeth once every six months?
@peter-pg5yc Incorrect. Plenty of poor people have Medicaid, and middle class folks have employer-based healthcare. Besides that, it's a metaphor that CLEARLY went over your head.
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
I encountered ROCHELLE DUNGCA-SCHREIBER through a CNBC interview, and I look her up. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested. You can hunt her up online if you require care supervision.>
I’m not trying to start anything but this video is really pointless she basically described what it is to be rich not wealthy and with me starting my own financial investment group I will be teaching people what wealth really is and being wealthy doesn’t come with a lifestyle nor having a certain kind of net worth when u are rich it is all about the money but when u are wealthy it’s about something much greater than that because if y’all was to ask her what it is like for a person to be rich she will have to describe it as something similar to this being rich and wealthy are 2 completely different things being wealthy is on an entirely different level what equals wealth is what I call the FO which stands for freedom and ownership so if y’all have 2 people u take 1 person and he have $100,000,000 and he got 3 cars and 2 houses one of them is a mansion he goes on shopping sprees every month and he spend an extra $10,000/month on other entertainment and personal uses the 2nd person owns his own land doesn’t pay any taxes for the land he owns because he has a deed with the person he bought the land from so the banks aren’t involved in his business transactions and the land is still fertile which means it still produces a natural earthly resource in this case the natural resource the land produce on its own is water he diversify himself in a way he doesn’t have one fork nor one face of money he puts his currency into different assets even sone that aren’t apart of the stock market nor Monterrey system the assets he puts his currency into not only generated revenue on its own but he can also use them as a tool of barter he doesn’t have a mansion just a house that he built on his own with all natural and authentic materials now if we take these 2 individuals and put them on a remote secluded island which one of them yall think will last the longest it is very clear who is the one that’s really wealthy in this example I don’t understand why people bring up net worth and money when it comes to being wealthy if a person owns natural and earthly resources he has more than some that even have $50 trillion dollars currency depreciate over time and that’s all rich people have is currency and a bunch of stuff know the difference because they aren’t the same people
Wealth to me is not having to worry about having to work. I'm 62, I still plan to work until 65. But if I lost my job and never worked again I would be just fine. I don't feel that I'm forced to work a job I don't enjoy. I've had to do that in my younger days.
It's a matter of perspective. I grew up poor, and I felt FABULOUSLY WEALTHY when my net worth hit $10k at age 23. $10k in the bank was, to me coming from nothing, the realm of rich folks. When my net worth hit $1 million, I thought I had finally made it. But I wasn't sure it was enough to be financially independent. Now at age 60, my wife and I are decamillionaires, we donate our salaries to charities. In my mind, I know we are pretty rich. But in some ways, I feel less wealthy now than I did at 23. Kinda weird, isn't it?
I am in a similar position. I cut lawns in high school and worked building maintenance in order to pay for college. That paid for the first year of private college, The second year, I worked in a pizzeria and Friendly's(summer only). I continued working at the pizzeria until I finished college. I got, on time, out with no debt and $1200 in my pocket. I started my career and kept my college budget while starting investing. That has grown out to $5.5 mil. However, when we go to the supermarket, we still look at the remaindered and discounted stuff. We keep our budget and are paying for all of my daughters college, so that she will be debt free too. As you get older, you may always feel that it is never enough. It is the trap that the average person does not understands.
@@hogroamer260 I graduated college in 1988... Laid off in 2010. Now I only do contract jobs once in a while to make sure that I don't touch the portfolio. Only 8 more years to go until retirement.
Sorry to hear about your cancer and continuing seizures. It’s hard to be grateful when those things have happened to you, yet I still hear your gratefulness in every video. Be Well!!!
Being retired for 5 years now, my wife and I consider 'wealthy' as being able to pay our monthly bills (utilities, insurance, food, mortgage, etc), have excess left after paying the aforementioned, have a well-funded slush fund, and plenty of cash invested in our 401K's. We have no credit card debt or car payments.
I’m retiring this Friday! I’m somewhat young at 54 but like you said Erin, health is everything. I’ve always been a very fit person but fit and healthy doesn’t always equate. 2 years ago I was diagnosed with heart disease and had to have a triple bypass. I’m fine now, but it immediately changed my view of things and decided since I have the money already, it’s time to call it quits. I doubt I would have even been thinking of retiring if it wasn’t for my health issues. Life is short and way too short to dedicate more than half of it to make other people rich.
My wife and I both had cancer scares. Mine almost killed me. This was back in 2010 and 2011. We had talked for years about taking a trip to Europe, but never felt we had the vacation time or money to do it. After we both had a dose of mortal reality we decided to just do it. We went using frequent flyer miles, hotel points, and credit cards. I know it was not the most wise financial advise to use credit cards, but it was an amazing trip. We had those cards paid off within a year after getting back. We also decided we'd try to retire as soon as possible. My wife retired about 6 months before I took a convenient voluntary layoff at age 61 with 8 months severance pay. It's been 7 years since we retired and we're doing fine financially and have a trip to Iceland planned for later this year.
I’m glad to hear you are fine now Rick!! A health scare changes your perspective for sure - happy retirement on Friday!!!! 🎉 I hope you are able to stay healthy and active and that you have a a lot of adventures planned!
House paid, zero debts, goid health, been retired 6 years, wife is given all documents and knowledge usage of accounts for the time i might not be here. This last step to me is possibly the most important step!
Hi Erin. My wife is also a survivor of a meningioma. With the support of many relatives, friends, and our hero, her surgeon who performed 14-hour surgery to remove the tumor which was located at her brain stem. Like yourself, she has some residual issues, but has bravely pushed forward. To me, wealth is being able to live life as simply or boldly as one wishes without fear of running out of resources (money).
You are an amazing young woman! Didn’t have information you have here in working years. However, somehow, growing up without money I was always aware to plan to have enough money to survive without struggling too much. Thus, have always had a paper-pencil plan. Now 25 years retired, I feel wealthy because it’s not a struggle. Your posts are great for young people starting out. Great proven road map.
Thanks for sharing!! I hope you are having an amazing retirement! And I really like what you said, sometimes a lot about feeling wealthy is simply not struggling.
Erin, I really liked the comments at the beginning about getting a bit away from $ to assess wealth! As someone who's 58 years old and getting near retirement, I'm always observing people 5-10 years ahead of me, and the stark difference is along the lines of health. I know a 70 year old who's in fantastic health and exercises daily to ensure that. I know someone a bit younger than that who doesn't look after his health and that places profound limitations on what he can and cannot do. I know what category I want to end up in! Excellent subject overall!
I am right there with you, I always look at people who are a decade or two ahead of me, and I know who I want to age like. That’s why I think it’s so important to take care of your health if you want to have a wealthy life
I find it interesting that most folks consider that it takes over $2 million to be considered wealthy. I am nowhere near that and I feel wealthy, but I live a simple, frugal lifestyle, only debt is a little left on my mortgage, and have a decent chunk saved and invested. I have a good job with not a lot of stress, I’m active in my church and community, and I try to exercise every day. I guess my wealth feeling goes beyond strictly finances.
I know someone who’s net worth is $400k and feels wealthy. Well to start with, they live a simple life, simple wants, doesn’t cost an arm and a leg for them to be happy, and most importantly has a successful marriage (he picked the right lifetime partner). Lots of people are broke because of broken marriages (one of the most expensive ever).
Had to retire early at 58,but finally got SSDI at 62. Planned to work till 67. Was topped out in pay at my airline job with high seniority. Planned on banking big money those 9 years. So HEALTH is what matters most, as money doesn't matter in the grand scheme of life, if one can't enjoy spending it. Colleague of mine took airline buyout like I did that finally paid us all off last Sept. 1. She was 6 years older than me I believe and she just died of pancreatic cancer. Money helps cushion life, but whether one has 2 Million or 200K, without health, numbers are just numbers.
Wealthy = living below your means. Poor = spending beyond your means. An unstoppable appetite cannot be filled with any amount of money. Banking 20% of your take-home pay is a pretty safe measure of secured wealth for those in their working years.
For me, 20% is a starting point. That's basically impossible to do if you wait until you've already got 3 kids, a big mortgage, 2 car payments, and a spouse who enjoys the finer things. Live below your means for 30 years so you can live beyond your wildest dreams for the next 30.
Great video! I tore my achilles a year ago and I realized how much I took my health for granted. I'm better now, not 100% and can't do the things that I used to do but it's opened my eyes as to how fragile life can be.
First, I am happy to hear that you are healthy again 🎉! Personally, my wealth journey started later in life. I have always been one to put others needs ahead of my own. Paying my own way through college with no financial help from my parents got me into what I considered huge debt $20,000 - looking back it seems tiny now - but at the time it seemed huge. Working three jobs through college helped and growing up on a farm - where there was always work to do taught me the value of work. It also taught me that there was no way I wanted that life for myself! Then came marriage and a child who I wanted to 'have everything' I did not have- but mainly I wanted my son to graduate college with no student debt. So, after he graduated and after an amicable divorce that cut my net worth in half (not complaining - just facts- I decided (at age 50) that it was (and is) my turn. Now, 12 years later I am 2/3 of the way to the 'wealth' barometer that Forbes lists. I AM NOT a smart man... so if I can do it ANYONE can!
Being wealthy means you pay your bills on time, have a roof over your head and can go to a grocery store and buy what you want without having to look at the prices.
There is so much to unpack in this video - so many thought-provoking ideas. I think it is one of your best. I especially liked the graphic at 4:05 "Money does buy happiness after all." That alone could be an entire video. But talking about your own health struggles balances the message so personally and effectively. I'm sorry for what you have gone through and hope for your continued good health. What an inspiration!
Excellent video! My husband retired at 55 to help me take care of our son with cancer aftereffects and my dad with dementia. We always marked out on retirement and lived a pretty spartan life. We now have the time to research expenses and spot billing mistakes. Not what we planned for, but we are content and enjoy simple hobbies.
This is a very well done video and the guidance is solid. It fits what my wife and I have done in our own lives and we are very satisfied. Wealth is simply having more than you need. So, you can become wealthy by having more, or requiring less. So many people have a distorted view of money and wealth and what it actually means. Being wealthy does not make you better, smarter, or even neccesarily happier. Money simply gives you choices. So by extension, wealth, means you have more choices available to you. My wife and I both grew up extremely poor. In my case, a two room log cabin in a holler in Tennessee, no indoor plumbing and alot of hard work on a hardscrabble farm. I retired at 52 a number of years ago, my wife retires next month,she's 52. We are wealthy, by your definition, but also because we live simply, as we always have, and focus on family and one another. We don't put much stock in "stuff". It seems that if you're not careful the things you "own" can end up "owning" you.
Wealth is relative. I have family scattered all over the planet and what it takes to be wealthy in each place can vary a lot. My most recent "net worth statement" had me over $2m, which would feel wealthy in some places. I am expat in a large metropolis where I commute two hours a day in my 11 year-old Ford Focus. My neighbors are driving fancy German cars and I feel my means are modest by comparison. If you asked me how much I would need to feel wealthy, it would be $5m as I'm only feeling solid middle class at this point.
The irony is many of those neighbors driving BMW's and Mercedes are leasing them and really have a low net worth. It may be a fancy lifestyle, but its just rented. They're trapped working to support cash flow, which of course can't go on forever.
There are many things to add all up when considering happiness/wealth. I very much agree with you when you say that you don't understand how important health is until you don't have it. Prayers for you.
I was over 60 years old when I found out that there are very smart, well educated people that study happiness (sense of well being). My first thought was, what a waste, all that education for nothing. Happiness is not a very salable product. The people that really know aren't so motivated by money. I got happiness by reading Dr Robert Holden quotes online and picking out some that resonated with me to plant as "seeds" in my mind that grew. There's also a "free Yale happiness course" Dr Laurie Santos teaches. Now I imagine a world where we pursue happiness instead of money. I think most of the world does that better than the US.
I agree with what some others have said, for example, I have a non-stressful job that pays well, live simply, stay active, look pretty young for my age, live beneath my means and save about half of what I earn. I go on great vacations, but haven't spent a penny on new jeans in years.
I have watched many of your videos and admired the crystal clear way have been explaining the monetary issues. This particular video made me very sad to know of your health issue. I sincerely pray for your health and well being. May God's blessing be with you every second of the day.
Thank you Erin. Financial plan: 1. Goals Short term 10 years 2. Net worth statement 3. Budget 4. Plan for managing debt (if any) 5. Retirement plan 6. Emergency fund (3-24 months) 7. Insurance coverage 8. Estate plan 92% feel confident they will hit their goals WITH A PLAN. Make a plan. ;)
For people who define themselves by money, title, career and assets I remind them that injury, disease can happen to anyone and I would suggest doing some soul searching regarding what defines you. I chased the Jones's for awhile and was miserable. When I stopped and started to live modesty regarding material things and focused on health and enriching my soul, I found much greater happiness and fulfillment!
Erin, thank you for sharing that bit of personal health information. We have no idea what others have to endure in their every day life. I firmly believe that everyone will have some sort of personal struggle at some point. Every day is a blessing. Be well.
My wife and I are in the top 5% in the USA, so I guess we are wealthy. We are retired, but neither of us ever made really big salaries. My wife was an RN and I was a sales manager. We were good savers and investors, not high earners. I have a friend that I've known since we were 5. We went to school together through our JC days and have been in constant touch all our lives. 5 years ago, he sold his business and instantly catapulted himself into the top 1% of Americans. Compared to him, I'm not wealthy. We were fishing in South Florida earlier this year and decided to go look around in Naples. We drove through one neighborhood where my friend wouldn't have been able to afford a single home lot, much less build a house on it. Wealth is a lot more than money. So is poverty. So many ultra rich people are miserable with their lives.
Rich and wealthy are two different meanings . Real wealth is when u can stop doing what do as doing to become rich . You can remove yourself from the operation and still generate the same cash flow or more without being there. Health #1
Late to the party, but up until about a year ago I considered having 2 - 3 times your current assets would make you feel wealthy regardless of what you actually have. Now it's knowing that you have enough to retire with the lifestyle that you desire. I'm glad that you've largely recovered from the tumor. Your videos are helping a lot of people and helping others is the most important thing we can do in life.
A late entry here, after thinking about this for two weeks. Like all things financial, wealth is based on a ledger. On one side is your budget. On the other side are your assets and income. Those vary for everyone and is the reason everyone has a different dollar amount that they consider wealthy. For me, I feel wealthy if my net worth, throughout my lifetime, is ever increasing.
A-Total up your liquid assets: retirement plans, bank accounts. No real estate or tangible goods. B-Subtract your age from 100 -Divide the A by B. This is a rough estimate of how much money per year you can count on. It's not meant to include taxes, capital gains, interest. It's a simple rounding calc for a guideline. Example, age 50 with $100k 401k, 100k IRA, $50k savings/brokerage; sum = $250k $250k/(100-50) = $5k per year Same numbers, but aged 75: $250k/(100-75) = $10k per year Millionaire, aged 65 $1,000k/(100-65) = ~$28,500 per year There are two points with this exercise: -to give you a quick reference to what you can rely upon -to demonstrate that being a millionaire, especially a 401k millionaire, is no longer "wealthy"; and yet, sadly, being a millionaire does put you near the top of the world's humanity-heap.
Understand what all your expenditures are first - create your own benchmark - it’s also valuing your assets - lowering all or eliminating debt - the largest ones being your home and car.. / low debt or no debt - will free you up for saving 😅
What a strong ,resilient and smart woman . I recently lost a friend to a brain tumor , but during his treatment our little yorkie Rosie was at his side , a constant companion ,while they watched him when we were traveling.
Erin: I’m a retired CPA. For years I’ve suggested a plan similar to yours to my clients. Some embraced it and did a great job. Others said it was to hard, they lacked skills or they didn’t think it was useful. When I heard excuses I suggested they look at the task as a part time job with potential huge return. If you spend 4 hours per week (208/ Yr) for 20 years (4160 hrs total) but raise your retirement net worth by ($416,000) that averages $100 for every hour worked. Where else can a person earn such a large potential reward? I did this personally and reaped the benefit. If you don’t want to do it all alone the potential out-ways reasonable cost for help. Obviously each person’s results will be different, but the process does work.
When I first married my wife, most of her 401k was in a guaranteed fund. She said she wasn't interested in retirement planning. I asked her why should she be, it's only the money she will have to live on for the rest of her life. She never forgot that! She still has no interest, but she lets me manage it so she's in a great position now, at 67. It's a second marriage for both of us. We maintain separate finances, it's good to know we are together because we want to be and not because finances dictate it.
I’m so happy to hear of your full and healthy recovery. Congrats to you and your fighting spirit even though it must have been exhausting throughout. You look amazing!!, 🎉❤
8:51 - an estate plan - I don't have such, but every year or so I try to go thru our finances and create a "If Ron is Gone..." document With insurances, investments, etc.. and the contact info for each. This also contains what the current value of each should be on the day of writing.
I think an individual who lives alone or a couple are "wealthy" enough to retire if they have a home paid off, and a fully funded 3 year emergency fund plus 25 to 30 x the cost of their annual household expenditure. Hopefully their annual expenditure includes enough for 6 to 8 weeks vacation every year. I think the value of net worth to achieve this is different for every couple.
I'm pausing at the 10-second mark to give my answer. My gut feeling when I think "wealthy" nowadays is (age dependent) about a $2 million+ net worth. A net worth of $1 million still seems great but not exactly "wealthy" in 2023.
Nice summary. Most people don't consider a capitalized value of their social security payments as part of their wealth. It is. Not something you can pass on, but it is part of your net worth while you are living.
I've always had a financial plan it boggles my mind how many can go through life without one or without a realistic one. Yes things can pop up in life to make you needing to adjust your financial plan so they are definitely no guarantee but I can't imagine getting to where I am today without one. Pandemic threw me for a loop on a side quest but now I'm back to seeing measurable progress towards my financial goals & lately at such a rate I never expected to attain. A financial plan means you can look back and hold yourself accountable whether you attain the goals you set out and make necessary adjustments.
Sorry to hear about your health struggles. It really points out there are things more important than money. We started quitting the corporate world when our kids were very small. It was the best thing we ever did. My wife created our company and structured it to meet the time and need constraints (childcare, school plays, etc.) we felt. Fortunately, it took off and grew and I could leave my corporate job, and we have worked together for decades. Not sure when we will retire, but now we do only the tasks that we want and find interesting.
I’ve never thought about being wealthy in just pure monetary terms. It’s certainly a factor, but it comes down to some of the things you describe in this video. What are your goals? What is your level of health? Can you cover your fixed expenses? How is your social network? Are you taking care of your mental wellbeing? All these things and more contribute to your life’s wealth.
@Erin, This is a very useful and informative video. I thank you for making it. My own sense of what it takes to be wealthy is $10M. (Full disclosure, I am still working on my first million - so I have a very long way to go.) Fortunately, I am extremely healthy. I agree the excellent health is the most important thing. I will study your video and really think this through.
Erin, thanks for sharing again -- in more detail -- of your health issue as an adolescent, and how that affects your health even to this day. As I think about it, an experience like that is a logical predicate for being a financial thinker and communicator as you are (following on your MA in finance, if I recall correctly). After all, a crisis like you suffered makes a person aware of just what "value" is as a metaphysical question. Not just financial value in the sense of money, or even value in the sense of health or peace of mind, but interest rather in just defining what is important and ordering our time and energy around that. Financial thinking, insofar as we weigh money and time, spending priorities and life planning, care for family, our obligations to government and society through taxes and charity, and our retirement and legacy, is a kind of disciplined, systematic conversation about value -- with dollar signs attached. Money, in this sense, is less about hard currency, and more about meaning, priorities, choices, and relationships. Again, thanks for sharing more of your story. I think followers of your channel have yet another reason in that to admire what you do.
i had prostate c and the treatment caused a really bad kidney infection that killed me. Got paddled back to life. Had other event too like if we dont do this in 5 minutes he could well pass on. Not a fun 10 days in hospital got intubated too. But to have monies to make life more interesting is my cake. Im nicer and spend more, i saved a lot. wealth is a very comforting feeling.
To me, feeling wealthy is strictly financial. That being said health is more important than wealth. As you said, wealth is VERY subjective. I am in my very early 60's making more than most with more than many in savings & investments. I don't feel wealthy. Probably because of my particular situation and having to save for a special needs child as well as taking care of my retirement. Good video
Well presented. First step is to learn to live below your means. Understand where your money goes. Write it down. Track it. You'll be shocked how much you waste which can be redirected to savings. Owning a home and being debt free is a game changer on quality of life. So much fun can be had without spending money or buying expensive stuff.
Excellent tips, and a good way to live....but this won't make you "wealthy" or even financially rich. This is akin to Elon telling you that cutting out Starbucks and fancy cell phones could make you more successful, like him, a billionaire. So many Americans actually believe they can make $1 billion dollars if they just save and work hard. 🤦
Growing up, my family was dirt poor, so I learned how to manage money reasonably well. My net worth is about $600k and I am 61 and still working. I lost everything in a divorce, and started again at 45 with $0.00. What makes me feel good about my financial condition, is that my mortgage is paid off, I don't have a car payment, I have almost $100k in Savings, two RSPs, a TFSA, and a GIC, and no debt not even credit card. I make a few thousand less than the average income in BC. Canada is getting really bad for being taxed to death though under the current government, so I still have concern for when I hit my 70's, hopefully my taxation rate will be low.
Why on earth would anyone hand over their money to the taxman? I haven't paid tax after my first pay-paypacket 62 years ago: when my pay was 4 quid short, and the boss explained to me about 'taxation'. Decided it wasn't for me.
Thank you for sharing. Glad to see that you came out of that situation the way you have. You definitely don’t look like what you’ve been through. Anyway, since you asked, I consider being wealthy as being able to pay all of your expenses, and still have money left to get to your next payday. Granted, there’s always room for improvement, like being debt free, but I believe you can be wealthy even with loans as long as they’re manageable. I’ll shut up now
I'll be honest, I recently hit 1M Net worth alone at age 44, I finally feel wealthy. Not that a million is a ton of money, I feel that way because my monthly expenses are $2700 and my passive income is over $3200. On top of that, I make $240,000 a year (gross). So I have a lot of leftover money each month. Savings are north of $13,000 a month. I bust my bum to earn that and feel proud of what Ive accomplished at age 44. My current 'problem' is deciding when to call it quits. Every year I work I save so much that I feel like it's worth continuing. I will hit 2M Net worth by age 48/49 at current savings rate and 5% growth [conservative]. So that's my goal....not that my life will change having 2M saved vs 1M. I just feel like that's the buffer I need to retire at a [relatively] young age.
Amen. We do what we can. If I may, one would never guess looking at you that you had these challenges. I see the entire gambit of answers and realize it encompasses all levels of one's life. As to the money end, not even at the edge of 2M have we ever feel wealthy. There is a calmness about being in a position to deal with normal financial issues and knowing that even a larger bill won't derail our investments or retirement. I started tracking our net worth and overall financial picture about 10 years ago on an excel spreadsheet and it is exciting to see the year over year changes. It really does help me to focus. After a while you begin to see the growth of investments as they start to outpace your annual savings contributions. It is a magical land of "critical mass" where it no longer needs your work to grow and that brings financial peace. God bless. I really do appreciate your videos. Thank you.
I’m glad you’ve hit the critical mass point. It’s so exciting. And hang onto those net worth statement, I lost some of mine from the very beginning, and I wish I had them.
I don't think wealth has much to do with net worth and more to do with passive income levels that are covering expenses. Wealth is measured in time and not in money. How long can you survive and cover all your lifestyle expenses without having to work in the morning. If the answer is indefinitely, then you are wealthy. Wealth is more cash flow than net worth. You may still put in the hours and keep building, but not need to. If you could stop working each day without a significant impact to your lifestyle, then you are wealthy. If you live in a cheaper location it's easier to be wealthy on a smaller cash flow. Net worth is worth less. Cash flow is king.
$1.5M. That's $50K/yr for 30 years at straight math, but add in compounded growth at 5% and you can live on $75K capital gains/dividend/interest and not touch that $1.5M. $100K/yr if you want to draw down on that $1.5M. That's my goal, $1.5M!
Feeling wealthy is a lot different than actually being wealthy! The fact that so many people feel wealthy and aren’t explains why nobody wants to work!
My wife and I never had a financial plan per se but we did consider it important to save as much as possible in our 401K over the years while living comfortably but modestly. Now we are retired and the savings have paid off nicely we still live comfortably and mostly modestly now we can travel and enjoy life.
very good video; good advice; my advice is to keep it simple; your plan won't work in the long run if it is too complicated. Like you say, take care of the basics (e.g. insurance, pay off credit cards every month, and so on). Then calculate how much you need to be financially independent, and by when, and what you need to put away every month, including the interest you expect to make on your investments. Then pay yourself first every month, having it taken out automatically so you don't have to think about it. If you put that in place, you don't have to obsess about it. Last thing is, you have to find a job you love (or at least, like a lot). It makes everything else more than tolerable.
I'm glad you are coping with your complications. My wife has had 3 meningiomas removed, with the second one resulting in a stroke and seizures. She is 68 now, the first one was in 2008, so it does take alot of faith in Jesus Christ to manage all the trials. I hope and pray you will fully recover.
I’m so sorry to hear that - I hope your wife is doing better these days. 🙏 My surgeries were back in 2005 & 2006, so roughly the same time. Thoughts and prayers for your wife
Not much was said about cash flow required to live on a day to day basis. If your long term planning includes having zero debt at retirement you have leveraged the usefulness of your savings and added a degree of security since that lack of cash flow demand is immune to the vagaries of market swings. With zero debt we live comfortably on cash flow. That nest egg is essentially undisturbed and remains a comforting resource that is not diminishing over time. Reducing cash flow requirements is also an inflation hedge since you have lower income needs. Not to mention you aren't feeding compound interest payments.
Great video. Sorry to hear about your health issues. You have a great perspective on building wealth and I agree totally that a person should pay off all credit cards because they are a wealth building killer in the long run you are simply making the financial institutions rich.
Yeah, my numbers are way below what's there. Yet I feel more wealthy than people with way more than I. And I am single so go figure. My heart goes out to you and you're amazing to get through a medical procedure like that. And of course, Peanut is awesome to help along. Hugs from afar. (Can I say that without being thought of as a creepy old guy? Well, I said it anyway). All the best to you! My retirement looks awesome. Oh, good video, good suggestions.
I agree that health is more important than money. I've dealt with my own share of health struggles and can confidently say that I'd rather have health over financial wealth any day. Relationships are also another asset that is much greater than money. My relationship with God, family and friends are what truly make one wealthy.
I wish you the best. You might consider magnets placed around your head keep it on all day and each month look at a thermography and see if the tumor is shrinking or getting larger. If you are using bar magnets you would switch the poles around if the tumor was growing. Medical magnets which are round you would just leave it using all the same side. The Russians had extensive studies on this
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Health is wealth. "If you have your health, you have everything." Words of wisdom spoken by a truly great Dad. 💛
And, if you don't have your health, you have nothing.
What do Americans do if they have no health insurance? Do they just let you die because you cannot pay or place you and your entire family into severe poverty? Just wondering since I live in a country where I do not have to worry about that. For me it was more than enough to deal with a sever illness, and gratefulI did not have worry about bills.
If you don't have wealth, you don't have health. Everything that keeps you in good health costs money. Annual checkup? Healthy food? Good medical care if you were hit by a red light runner? Cleaning your teeth once every six months?
Well without wealth you dont get health care silly. dads wrong. wealth allows freedom from stress etc.
@peter-pg5yc Incorrect. Plenty of poor people have Medicaid, and middle class folks have employer-based healthcare. Besides that, it's a metaphor that CLEARLY went over your head.
net worth is not a measure of wealth. When you passive income exceeds you expenses you are wealthy.
So glad you are healthy Erin!
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
I encountered ROCHELLE DUNGCA-SCHREIBER through a CNBC interview, and I look her up. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested. You can hunt her up online if you require care supervision.>
I don’t know this channel. But this young woman seems very smart and sweet. I’m glad her health is better and wish her all the best!
I’m not trying to start anything but this video is really pointless she basically described what it is to be rich not wealthy and with me starting my own financial investment group I will be teaching people what wealth really is and being wealthy doesn’t come with a lifestyle nor having a certain kind of net worth when u are rich it is all about the money but when u are wealthy it’s about something much greater than that because if y’all was to ask her what it is like for a person to be rich she will have to describe it as something similar to this being rich and wealthy are 2 completely different things being wealthy is on an entirely different level what equals wealth is what I call the FO which stands for freedom and ownership so if y’all have 2 people u take 1 person and he have $100,000,000 and he got 3 cars and 2 houses one of them is a mansion he goes on shopping sprees every month and he spend an extra $10,000/month on other entertainment and personal uses the 2nd person owns his own land doesn’t pay any taxes for the land he owns because he has a deed with the person he bought the land from so the banks aren’t involved in his business transactions and the land is still fertile which means it still produces a natural earthly resource in this case the natural resource the land produce on its own is water he diversify himself in a way he doesn’t have one fork nor one face of money he puts his currency into different assets even sone that aren’t apart of the stock market nor Monterrey system the assets he puts his currency into not only generated revenue on its own but he can also use them as a tool of barter he doesn’t have a mansion just a house that he built on his own with all natural and authentic materials now if we take these 2 individuals and put them on a remote secluded island which one of them yall think will last the longest it is very clear who is the one that’s really wealthy in this example I don’t understand why people bring up net worth and money when it comes to being wealthy if a person owns natural and earthly resources he has more than some that even have $50 trillion dollars currency depreciate over time and that’s all rich people have is currency and a bunch of stuff know the difference because they aren’t the same people
Wealth to me is not having to worry about having to work. I'm 62, I still plan to work until 65. But if I lost my job and never worked again I would be just fine. I don't feel that I'm forced to work a job I don't enjoy. I've had to do that in my younger days.
It's a matter of perspective. I grew up poor, and I felt FABULOUSLY WEALTHY when my net worth hit $10k at age 23. $10k in the bank was, to me coming from nothing, the realm of rich folks. When my net worth hit $1 million, I thought I had finally made it. But I wasn't sure it was enough to be financially independent. Now at age 60, my wife and I are decamillionaires, we donate our salaries to charities. In my mind, I know we are pretty rich. But in some ways, I feel less wealthy now than I did at 23. Kinda weird, isn't it?
I remember getting my first real paycheck that had a comma in it (like $1,000) - my thought was THIS IS IT, I’ve made it! 😂
I was much more wealthier when I was 22 y/o and going out with my boys on Friday nights with a mere $20 in my pocket!!!
I am in a similar position. I cut lawns in high school and worked building maintenance in order to pay for college. That paid for the first year of private college, The second year, I worked in a pizzeria and Friendly's(summer only). I continued working at the pizzeria until I finished college. I got, on time, out with no debt and $1200 in my pocket. I started my career and kept my college budget while starting investing. That has grown out to $5.5 mil. However, when we go to the supermarket, we still look at the remaindered and discounted stuff. We keep our budget and are paying for all of my daughters college, so that she will be debt free too. As you get older, you may always feel that it is never enough. It is the trap that the average person does not understands.
@ErinTalksMoney Ha, ha! Ditto and mine was in 1985 @ 26 years old.
@@hogroamer260 I graduated college in 1988... Laid off in 2010. Now I only do contract jobs once in a while to make sure that I don't touch the portfolio. Only 8 more years to go until retirement.
I am wealthy I got up this morning!
Sorry to hear about your cancer and continuing seizures. It’s hard to be grateful when those things have happened to you, yet I still hear your gratefulness in every video. Be Well!!!
Being retired for 5 years now, my wife and I consider 'wealthy' as being able to pay our monthly bills (utilities, insurance, food, mortgage, etc), have excess left after paying the aforementioned, have a well-funded slush fund, and plenty of cash invested in our 401K's. We have no credit card debt or car payments.
Great position to be in, I hope you and your wife have a wonderful retirement
I also like to include an ever increasing net worth. I hope to leave a legacy. ...Maybe that could be the next video " How much is a "Legacy"?"
Those are nice positions. Being able to sleep at night has always been my simplest goal, I don't like worrying about money.
@@bobfeller604same here, a good night sleep is a blessing, that’s is my everyday wish.
To be truly wealthy- you need about 10M…ask folks that actually have 2.2 m whether they feel truly wealthy and the answer will be no…just comfortable
I’m retiring this Friday! I’m somewhat young at 54 but like you said Erin, health is everything. I’ve always been a very fit person but fit and healthy doesn’t always equate. 2 years ago I was diagnosed with heart disease and had to have a triple bypass. I’m fine now, but it immediately changed my view of things and decided since I have the money already, it’s time to call it quits. I doubt I would have even been thinking of retiring if it wasn’t for my health issues. Life is short and way too short to dedicate more than half of it to make other people rich.
My wife and I both had cancer scares. Mine almost killed me. This was back in 2010 and 2011. We had talked for years about taking a trip to Europe, but never felt we had the vacation time or money to do it. After we both had a dose of mortal reality we decided to just do it. We went using frequent flyer miles, hotel points, and credit cards. I know it was not the most wise financial advise to use credit cards, but it was an amazing trip. We had those cards paid off within a year after getting back. We also decided we'd try to retire as soon as possible. My wife retired about 6 months before I took a convenient voluntary layoff at age 61 with 8 months severance pay. It's been 7 years since we retired and we're doing fine financially and have a trip to Iceland planned for later this year.
I’m glad to hear you are fine now Rick!! A health scare changes your perspective for sure - happy retirement on Friday!!!! 🎉 I hope you are able to stay healthy and active and that you have a a lot of adventures planned!
What a scare Matt! I hope you and your wife are both doing well now! Enjoy Iceland - it’s absolutely on my bucket list as well!!
I've had 2 heart attacks 20 years ago so they filled me full of stents....lol....glad your good and have a great life!
Enjoy!
House paid, zero debts, goid health, been retired 6 years, wife is given all documents and knowledge usage of accounts for the time i might not be here. This last step to me is possibly the most important step!
You are a very caring husband, many browny points to you😂
Hi Erin. My wife is also a survivor of a meningioma. With the support of many relatives, friends, and our hero, her surgeon who performed 14-hour surgery to remove the tumor which was located at her brain stem. Like yourself, she has some residual issues, but has bravely pushed forward. To me, wealth is being able to live life as simply or boldly as one wishes without fear of running out of resources (money).
I’m so grateful your wife had such an amazing surgical team and such wonderful family and friends! ❤️ All the best!!! 🙏
No mortgage, no debt. 1.5 million in 401k and 200 k income. Happy and healthy.
You are an amazing young woman!
Didn’t have information you have here in working years. However, somehow, growing up without money I was always aware to plan to have enough money to survive without struggling too much. Thus, have always had a paper-pencil plan. Now 25 years retired, I feel wealthy because it’s not a struggle. Your posts are great for young people starting out. Great proven road map.
Thanks for sharing!! I hope you are having an amazing retirement! And I really like what you said, sometimes a lot about feeling wealthy is simply not struggling.
Erin, I really liked the comments at the beginning about getting a bit away from $ to assess wealth! As someone who's 58 years old and getting near retirement, I'm always observing people 5-10 years ahead of me, and the stark difference is along the lines of health. I know a 70 year old who's in fantastic health and exercises daily to ensure that. I know someone a bit younger than that who doesn't look after his health and that places profound limitations on what he can and cannot do. I know what category I want to end up in! Excellent subject overall!
I am right there with you, I always look at people who are a decade or two ahead of me, and I know who I want to age like. That’s why I think it’s so important to take care of your health if you want to have a wealthy life
I find it interesting that most folks consider that it takes over $2 million to be considered wealthy. I am nowhere near that and I feel wealthy, but I live a simple, frugal lifestyle, only debt is a little left on my mortgage, and have a decent chunk saved and invested. I have a good job with not a lot of stress, I’m active in my church and community, and I try to exercise every day. I guess my wealth feeling goes beyond strictly finances.
I one hundred percent agree with this! And I feel like them or simply you live your life, the easier it is to feel wealthy
I know someone who’s net worth is $400k and feels wealthy. Well to start with, they live a simple life, simple wants, doesn’t cost an arm and a leg for them to be happy, and most importantly has a successful marriage (he picked the right lifetime partner). Lots of people are broke because of broken marriages (one of the most expensive ever).
its not what you make, its what you spend and how much you can invest
Health is so important and I thank you for being so open Erin! ❤
Thanks Shelise!!! 💙
Wow! Very personal reveal. I can relate and validate your approach to life. You really don't know how valuable life is until you almost lose it.
Had to retire early at 58,but finally got SSDI at 62. Planned to work till 67. Was topped out in pay at my airline job with high seniority. Planned on banking big money those 9 years. So HEALTH is what matters most, as money doesn't matter in the grand scheme of life, if one can't enjoy spending it. Colleague of mine took airline buyout like I did that finally paid us all off last Sept. 1. She was 6 years older than me I believe and she just died of pancreatic cancer.
Money helps cushion life, but whether one has 2 Million or 200K, without health, numbers are just numbers.
My financial manager tells me every 6 months one of you will live till 90 be prepared to do so..
Wealthy = living below your means. Poor = spending beyond your means. An unstoppable appetite cannot be filled with any amount of money. Banking 20% of your take-home pay is a pretty safe measure of secured wealth for those in their working years.
For me, 20% is a starting point. That's basically impossible to do if you wait until you've already got 3 kids, a big mortgage, 2 car payments, and a spouse who enjoys the finer things.
Live below your means for 30 years so you can live beyond your wildest dreams for the next 30.
Savings are more then 401k.
Great video! I tore my achilles a year ago and I realized how much I took my health for granted. I'm better now, not 100% and can't do the things that I used to do but it's opened my eyes as to how fragile life can be.
First, I am happy to hear that you are healthy again 🎉! Personally, my wealth journey started later in life. I have always been one to put others needs ahead of my own. Paying my own way through college with no financial help from my parents got me into what I considered huge debt $20,000 - looking back it seems tiny now - but at the time it seemed huge. Working three jobs through college helped and growing up on a farm - where there was always work to do taught me the value of work. It also taught me that there was no way I wanted that life for myself! Then came marriage and a child who I wanted to 'have everything' I did not have- but mainly I wanted my son to graduate college with no student debt. So, after he graduated and after an amicable divorce that cut my net worth in half (not complaining - just facts- I decided (at age 50) that it was (and is) my turn. Now, 12 years later I am 2/3 of the way to the 'wealth' barometer that Forbes lists. I AM NOT a smart man... so if I can do it ANYONE can!
Having great relationships with your family and friends is next on the wealth list over health and time.
Being wealthy means you pay your bills on time, have a roof over your head and can go to a grocery store and buy what you want without having to look at the prices.
And read the menus from left to right.
@@harleyb.birdwhispererwithout reservations 😊
This would be better than many have, but I feel an emergency stash would be a necessity.
That is what should be considered normal.
I guess I’m wealthy then (and very grateful!).
But I’m not sure I always will be able to do those things … Maybe it takes a little more than that.
There is so much to unpack in this video - so many thought-provoking ideas. I think it is one of your best. I especially liked the graphic at 4:05 "Money does buy happiness after all." That alone could be an entire video. But talking about your own health struggles balances the message so personally and effectively. I'm sorry for what you have gone through and hope for your continued good health. What an inspiration!
I may have already done a video on money + happiness 😉
Excellent video! My husband retired at 55 to help me take care of our son with cancer aftereffects and my dad with dementia. We always marked out on retirement and lived a pretty spartan life. We now have the time to research expenses and spot billing mistakes. Not what we planned for, but we are content and enjoy simple hobbies.
Congratulations! Great Job!
Tracking our net worth was a game changer for us.
Love it!
This is a very well done video and the guidance is solid. It fits what my wife and I have done in our own lives and we are very satisfied. Wealth is simply having more than you need. So, you can become wealthy by having more, or requiring less. So many people have a distorted view of money and wealth and what it actually means. Being wealthy does not make you better, smarter, or even neccesarily happier. Money simply gives you choices. So by extension, wealth, means you have more choices available to you. My wife and I both grew up extremely poor. In my case, a two room log cabin in a holler in Tennessee, no indoor plumbing and alot of hard work on a hardscrabble farm. I retired at 52 a number of years ago, my wife retires next month,she's 52. We are wealthy, by your definition, but also because we live simply, as we always have, and focus on family and one another. We don't put much stock in "stuff". It seems that if you're not careful the things you "own" can end up "owning" you.
A friend of mine died from choking during a seizure that began while he slept. I'm glad you have your pup to warn you when one is coming.
Wealth is relative. I have family scattered all over the planet and what it takes to be wealthy in each place can vary a lot. My most recent "net worth statement" had me over $2m, which would feel wealthy in some places. I am expat in a large metropolis where I commute two hours a day in my 11 year-old Ford Focus. My neighbors are driving fancy German cars and I feel my means are modest by comparison. If you asked me how much I would need to feel wealthy, it would be $5m as I'm only feeling solid middle class at this point.
The irony is many of those neighbors driving BMW's and Mercedes are leasing them and really have a low net worth. It may be a fancy lifestyle, but its just rented. They're trapped working to support cash flow, which of course can't go on forever.
There are many things to add all up when considering happiness/wealth. I very much agree with you when you say that you don't understand how important health is until you don't have it. Prayers for you.
I was over 60 years old when I found out that there are very smart, well educated people that study happiness (sense of well being). My first thought was, what a waste, all that education for nothing. Happiness is not a very salable product. The people that really know aren't so motivated by money. I got happiness by reading Dr Robert Holden quotes online and picking out some that resonated with me to plant as "seeds" in my mind that grew. There's also a "free Yale happiness course" Dr Laurie Santos teaches. Now I imagine a world where we pursue happiness instead of money. I think most of the world does that better than the US.
I agree with what some others have said, for example, I have a non-stressful job that pays well, live simply, stay active, look pretty young for my age, live beneath my means and save about half of what I earn. I go on great vacations, but haven't spent a penny on new jeans in years.
I have watched many of your videos and admired the crystal clear way have been explaining the monetary issues. This particular video made me very sad to know of your health issue. I sincerely pray for your health and well being. May God's blessing be with you every second of the day.
Yes, it’s often said that “Health is wealth”. Without good health, wealth seems somewhat less important.
So true!
Thank you Erin.
Financial plan:
1. Goals
Short term 10 years
2. Net worth statement
3. Budget
4. Plan for managing debt (if any)
5. Retirement plan
6. Emergency fund (3-24 months)
7. Insurance coverage
8. Estate plan
92% feel confident they will hit their goals WITH A PLAN.
Make a plan. ;)
Plan your work. Work your plan.
For people who define themselves by money, title, career and assets I remind them that injury, disease can happen to anyone and I would suggest doing some soul searching regarding what defines you. I chased the Jones's for awhile and was miserable. When I stopped and started to live modesty regarding material things and focused on health and enriching my soul, I found much greater happiness and fulfillment!
Erin, thank you for sharing that bit of personal health information. We have no idea what others have to endure in their every day life. I firmly believe that everyone will have some sort of personal struggle at some point. Every day is a blessing. Be well.
My wife and I are in the top 5% in the USA, so I guess we are wealthy. We are retired, but neither of us ever made really big salaries. My wife was an RN and I was a sales manager. We were good savers and investors, not high earners.
I have a friend that I've known since we were 5. We went to school together through our JC days and have been in constant touch all our lives. 5 years ago, he sold his business and instantly catapulted himself into the top 1% of Americans. Compared to him, I'm not wealthy.
We were fishing in South Florida earlier this year and decided to go look around in Naples. We drove through one neighborhood where my friend wouldn't have been able to afford a single home lot, much less build a house on it.
Wealth is a lot more than money. So is poverty. So many ultra rich people are miserable with their lives.
Erin your attitude and gratitude is amazing. Our world needs more people like you.
Thank you for sharing, and may God continue to bless you.
Rich and wealthy are two different meanings . Real wealth is when u can stop doing what do as doing to become rich . You can remove yourself from the operation and still generate the same cash flow or more without being there. Health #1
Late to the party, but up until about a year ago I considered having 2 - 3 times your current assets would make you feel wealthy regardless of what you actually have. Now it's knowing that you have enough to retire with the lifestyle that you desire.
I'm glad that you've largely recovered from the tumor. Your videos are helping a lot of people and helping others is the most important thing we can do in life.
I like that definition - as long as it covers the life you want, you’re golden!
A late entry here, after thinking about this for two weeks. Like all things financial, wealth is based on a ledger. On one side is your budget. On the other side are your assets and income. Those vary for everyone and is the reason everyone has a different dollar amount that they consider wealthy. For me, I feel wealthy if my net worth, throughout my lifetime, is ever increasing.
Erin thats a great way to look at it. Hang in there!
A-Total up your liquid assets: retirement plans, bank accounts. No real estate or tangible goods.
B-Subtract your age from 100
-Divide the A by B.
This is a rough estimate of how much money per year you can count on. It's not meant to include taxes, capital gains, interest. It's a simple rounding calc for a guideline.
Example, age 50 with $100k 401k, 100k IRA, $50k savings/brokerage; sum = $250k
$250k/(100-50) = $5k per year
Same numbers, but aged 75:
$250k/(100-75) = $10k per year
Millionaire, aged 65
$1,000k/(100-65) = ~$28,500 per year
There are two points with this exercise:
-to give you a quick reference to what you can rely upon
-to demonstrate that being a millionaire, especially a 401k millionaire, is no longer "wealthy"; and yet, sadly, being a millionaire does put you near the top of the world's humanity-heap.
Understand what all your expenditures are first - create your own benchmark - it’s also valuing your assets - lowering all or eliminating debt - the largest ones being your home and car.. / low debt or no debt - will free you up for saving 😅
What a strong ,resilient and smart woman . I recently lost a friend to a brain tumor , but during his treatment our little yorkie Rosie was at his side , a constant companion ,while they watched him when we were traveling.
My TWO CENTS. money gives options and thats good. But It's Not the end all. if you can find contentment in your life you've won.
Erin: I’m a retired CPA. For years I’ve suggested a plan similar to yours to my clients. Some embraced it and did a great job. Others said it was to hard, they lacked skills or they didn’t think it was useful. When I heard excuses I suggested they look at the task as a part time job with potential huge return. If you spend 4 hours per week (208/ Yr) for 20 years (4160 hrs total) but raise your retirement net worth by ($416,000) that averages $100 for every hour worked. Where else can a person earn such a large potential reward? I did this personally and reaped the benefit. If you don’t want to do it all alone the potential out-ways reasonable cost for help. Obviously each person’s results will be different, but the process does work.
When I first married my wife, most of her 401k was in a guaranteed fund. She said she wasn't interested in retirement planning. I asked her why should she be, it's only the money she will have to live on for the rest of her life. She never forgot that! She still has no interest, but she lets me manage it so she's in a great position now, at 67. It's a second marriage for both of us. We maintain separate finances, it's good to know we are together because we want to be and not because finances dictate it.
I’m so happy to hear of your full and healthy recovery. Congrats to you and your fighting spirit even though it must have been exhausting throughout. You look amazing!!, 🎉❤
God bless you Erin. Well done!
Wealthy is being debt free and not owning a credit card. Having food clothing and shelter. The more money most make...the more they spend.
You are the first financial consultant who points out the importance of insurance in your financial plan. Good job. 👍
A very comprehensive and well presented session. It included excellent steps to having a more secure future. I really enjoyed your video.
Paul (UK)
Glad you enjoyed it! Thanks for watching Paul!!! 😊
Is this2.2M for individual or couples?
Health is Wealth !
8:51 - an estate plan - I don't have such, but every year or so I try to go thru our finances and create a "If Ron is Gone..." document With insurances, investments, etc.. and the contact info for each. This also contains what the current value of each should be on the day of writing.
You've created a net worth statement. I suggest your plan is in process. Is a budget next?
Wow, I am SO sorry this happened to you. You look amazing for having gone thru such a horrific event!
I love this channel. This episode was so real. Much respect exposing the hand you've been delt. You're amazing
Appreciate revealing that money is just a part of the wealth equation.
I think an individual who lives alone or a couple are "wealthy" enough to retire if they have a home paid off, and a fully funded 3 year emergency fund plus 25 to 30 x the cost of their annual household expenditure. Hopefully their annual expenditure includes enough for 6 to 8 weeks vacation every year.
I think the value of net worth to achieve this is different for every couple.
I like that!
And if you're lucky enough to have a small pension, getting S.S and debt free, then I'd say around 20 x.
I'm pausing at the 10-second mark to give my answer. My gut feeling when I think "wealthy" nowadays is (age dependent) about a $2 million+ net worth. A net worth of $1 million still seems great but not exactly "wealthy" in 2023.
Pretty spot on with the survey!
Nice summary. Most people don't consider a capitalized value of their social security payments as part of their wealth. It is. Not something you can pass on, but it is part of your net worth while you are living.
Thank you for sharing your personal health challenge. Having had a lifelong disability, I believe we help ourselves and others when we are open.
Great job Erin. Glad you kept going and continue to thrive through the hardships
I've always had a financial plan it boggles my mind how many can go through life without one or without a realistic one. Yes things can pop up in life to make you needing to adjust your financial plan so they are definitely no guarantee but I can't imagine getting to where I am today without one. Pandemic threw me for a loop on a side quest but now I'm back to seeing measurable progress towards my financial goals & lately at such a rate I never expected to attain. A financial plan means you can look back and hold yourself accountable whether you attain the goals you set out and make necessary adjustments.
No plan survives contact with the enemy but always have a plan!
Sorry to hear about your health struggles. It really points out there are things more important than money.
We started quitting the corporate world when our kids were very small. It was the best thing we ever did. My wife created our company and structured it to meet the time and need constraints (childcare, school plays, etc.) we felt. Fortunately, it took off and grew and I could leave my corporate job, and we have worked together for decades. Not sure when we will retire, but now we do only the tasks that we want and find interesting.
I think you illustrate a really great point here, and how important it is to have the right life partner, to have a happy, wealthy life
@@ErinTalksMoney Having the Right partner is a Huge factor, it makes all the difference.
I’ve never thought about being wealthy in just pure monetary terms. It’s certainly a factor, but it comes down to some of the things you describe in this video. What are your goals? What is your level of health? Can you cover your fixed expenses? How is your social network? Are you taking care of your mental wellbeing? All these things and more contribute to your life’s wealth.
Absolutely!
@Erin,
This is a very useful and informative video.
I thank you for making it.
My own sense of what it takes to be wealthy is $10M.
(Full disclosure, I am still working on my first million - so I have a very long way to go.)
Fortunately, I am extremely healthy. I agree the excellent health is the most important thing.
I will study your video and really think this through.
Erin, thanks for sharing again -- in more detail -- of your health issue as an adolescent, and how that affects your health even to this day. As I think about it, an experience like that is a logical predicate for being a financial thinker and communicator as you are (following on your MA in finance, if I recall correctly).
After all, a crisis like you suffered makes a person aware of just what "value" is as a metaphysical question. Not just financial value in the sense of money, or even value in the sense of health or peace of mind, but interest rather in just defining what is important and ordering our time and energy around that. Financial thinking, insofar as we weigh money and time, spending priorities and life planning, care for family, our obligations to government and society through taxes and charity, and our retirement and legacy, is a kind of disciplined, systematic conversation about value -- with dollar signs attached. Money, in this sense, is less about hard currency, and more about meaning, priorities, choices, and relationships.
Again, thanks for sharing more of your story. I think followers of your channel have yet another reason in that to admire what you do.
i had prostate c and the treatment caused a really bad kidney infection that killed me. Got paddled back to life. Had other event too like if we dont do this in 5 minutes he could well pass on. Not a fun 10 days in hospital got intubated too. But to have monies to make life more interesting is my cake. Im nicer and spend more, i saved a lot. wealth is a very comforting feeling.
This channel contains a remarkable amount of wisdom.
To me, feeling wealthy is strictly financial. That being said health is more important than wealth. As you said, wealth is VERY subjective. I am in my very early 60's making more than most with more than many in savings & investments. I don't feel wealthy. Probably because of my particular situation and having to save for a special needs child as well as taking care of my retirement. Good video
Similar situation. Working hard to have a second retirement for special needs child.
Glad you’re thriving to teach us finance on TH-cam ❤😊
Well presented.
First step is to learn to live below your means. Understand where your money goes. Write it down. Track it. You'll be shocked how much you waste which can be redirected to savings. Owning a home and being debt free is a game changer on quality of life. So much fun can be had without spending money or buying expensive stuff.
Excellent tips, and a good way to live....but this won't make you "wealthy" or even financially rich.
This is akin to Elon telling you that cutting out Starbucks and fancy cell phones could make you more successful, like him, a billionaire.
So many Americans actually believe they can make $1 billion dollars if they just save and work hard. 🤦
You are very good and I can see your channel is growing. Keep up the good work ! 🍀
Thanks so much!!
Growing up, my family was dirt poor, so I learned how to manage money reasonably well. My net worth is about $600k and I am 61 and still working. I lost everything in a divorce, and started again at 45 with $0.00. What makes me feel good about my financial condition, is that my mortgage is paid off, I don't have a car payment, I have almost $100k in Savings, two RSPs, a TFSA, and a GIC, and no debt not even credit card. I make a few thousand less than the average income in BC. Canada is getting really bad for being taxed to death though under the current government, so I still have concern for when I hit my 70's, hopefully my taxation rate will be low.
Why on earth would anyone hand over their money to the taxman? I haven't paid tax after my first pay-paypacket 62 years ago: when my pay was 4 quid short, and the boss explained to me about 'taxation'. Decided it wasn't for me.
Thank you for sharing. Glad to see that you came out of that situation the way you have. You definitely don’t look like what you’ve been through. Anyway, since you asked, I consider being wealthy as being able to pay all of your expenses, and still have money left to get to your next payday. Granted, there’s always room for improvement, like being debt free, but I believe you can be wealthy even with loans as long as they’re manageable. I’ll shut up now
Absolutely, as long as you are covering all of your expenses, you can absolutely feel like you’re still wealthy
Praying for healing from your seizures!
I'll be honest, I recently hit 1M Net worth alone at age 44, I finally feel wealthy. Not that a million is a ton of money, I feel that way because my monthly expenses are $2700 and my passive income is over $3200. On top of that, I make $240,000 a year (gross). So I have a lot of leftover money each month. Savings are north of $13,000 a month. I bust my bum to earn that and feel proud of what Ive accomplished at age 44.
My current 'problem' is deciding when to call it quits. Every year I work I save so much that I feel like it's worth continuing. I will hit 2M Net worth by age 48/49 at current savings rate and 5% growth [conservative]. So that's my goal....not that my life will change having 2M saved vs 1M. I just feel like that's the buffer I need to retire at a [relatively] young age.
Amen. We do what we can. If I may, one would never guess looking at you that you had these challenges. I see the entire gambit of answers and realize it encompasses all levels of one's life. As to the money end, not even at the edge of 2M have we ever feel wealthy. There is a calmness about being in a position to deal with normal financial issues and knowing that even a larger bill won't derail our investments or retirement. I started tracking our net worth and overall financial picture about 10 years ago on an excel spreadsheet and it is exciting to see the year over year changes. It really does help me to focus. After a while you begin to see the growth of investments as they start to outpace your annual savings contributions. It is a magical land of "critical mass" where it no longer needs your work to grow and that brings financial peace. God bless. I really do appreciate your videos. Thank you.
I’m glad you’ve hit the critical mass point. It’s so exciting. And hang onto those net worth statement, I lost some of mine from the very beginning, and I wish I had them.
@@ErinTalksMoney Thank you.
I never had a formal plan.. Spend less than you make, live reasonably and save as much as you can. Seemed to work out.
I'm sorry to hear about your tumor. Im glad you got the puppy to help you.
HEALTH is WEALTH! Absolutely!
Sheesh! I didn’t know about your health issues! Hope you’re doing well. Thanks for sharing your passion for personal financial management with us!
I don't think wealth has much to do with net worth and more to do with passive income levels that are covering expenses. Wealth is measured in time and not in money. How long can you survive and cover all your lifestyle expenses without having to work in the morning. If the answer is indefinitely, then you are wealthy. Wealth is more cash flow than net worth. You may still put in the hours and keep building, but not need to. If you could stop working each day without a significant impact to your lifestyle, then you are wealthy. If you live in a cheaper location it's easier to be wealthy on a smaller cash flow. Net worth is worth less. Cash flow is king.
Great perspective
$1.5M. That's $50K/yr for 30 years at straight math, but add in compounded growth at 5% and you can live on $75K capital gains/dividend/interest and not touch that $1.5M. $100K/yr if you want to draw down on that $1.5M. That's my goal, $1.5M!
Great info! Thanks for sharing this information along with your personal challenges. I agree. Your health is your greatest asset.
Youre amazing to fight through your health conditions and do this highly successful channel 🎉
Feeling wealthy is a lot different than actually being wealthy! The fact that so many people feel wealthy and aren’t explains why nobody wants to work!
My wife and I never had a financial plan per se but we did consider it important to save as much as possible in our 401K over the years while living comfortably but modestly. Now we are retired and the savings have paid off nicely we still live comfortably and mostly modestly now we can travel and enjoy life.
Your great attitude is impressive
You can’t control everything in life, but you can control your attitude
very good video; good advice; my advice is to keep it simple; your plan won't work in the long run if it is too complicated. Like you say, take care of the basics (e.g. insurance, pay off credit cards every month, and so on). Then calculate how much you need to be financially independent, and by when, and what you need to put away every month, including the interest you expect to make on your investments. Then pay yourself first every month, having it taken out automatically so you don't have to think about it. If you put that in place, you don't have to obsess about it. Last thing is, you have to find a job you love (or at least, like a lot). It makes everything else more than tolerable.
I'm glad you are coping with your complications. My wife has had 3 meningiomas removed, with the second one resulting in a stroke and seizures. She is 68 now, the first one was in 2008, so it does take alot of faith in Jesus Christ to manage all the trials. I hope and pray you will fully recover.
I’m so sorry to hear that - I hope your wife is doing better these days. 🙏 My surgeries were back in 2005 & 2006, so roughly the same time. Thoughts and prayers for your wife
Not much was said about cash flow required to live on a day to day basis. If your long term planning includes having zero debt at retirement you have leveraged the usefulness of your savings and added a degree of security since that lack of cash flow demand is immune to the vagaries of market swings. With zero debt we live comfortably on cash flow. That nest egg is essentially undisturbed and remains a comforting resource that is not diminishing over time. Reducing cash flow requirements is also an inflation hedge since you have lower income needs. Not to mention you aren't feeding compound interest payments.
Great video. Sorry to hear about your health issues. You have a great perspective on building wealth and I agree totally that a person should pay off all credit cards because they are a wealth building killer in the long run you are simply making the financial institutions rich.
Yeah, my numbers are way below what's there. Yet I feel more wealthy than people with way more than I. And I am single so go figure.
My heart goes out to you and you're amazing to get through a medical procedure like that. And of course, Peanut is awesome to help along. Hugs from afar. (Can I say that without being thought of as a creepy old guy? Well, I said it anyway). All the best to you!
My retirement looks awesome.
Oh, good video, good suggestions.
So much of it comes down to how you live your life and what your life costs! I am so happy to hear that you feel wealthy! 😊🙏
I agree that health is more important than money. I've dealt with my own share of health struggles and can confidently say that I'd rather have health over financial wealth any day. Relationships are also another asset that is much greater than money. My relationship with God, family and friends are what truly make one wealthy.
Agreed! Stay healthy Fred!!
Excellent road map presentation to financial planning.
Thanks!
I wish you the best. You might consider magnets placed around your head keep it on all day and each month look at a thermography and see if the tumor is shrinking or getting larger. If you are using bar magnets you would switch the poles around if the tumor was growing. Medical magnets which are round you would just leave it using all the same side. The Russians had extensive studies on this
Great video. You have a great outlook on life. Wishing you good health in the future!
You play the hand you're dealt, everybody has to. You're a good player, thanks for teaching the rest of us.
$2.2M? I'd prefer closer to $4M myself.
I think I’m more in line with your number 😊