How To Build Wealth On A Low Income (Investing + Retirement + Saving)
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- เผยแพร่เมื่อ 1 ส.ค. 2024
- The most realistic wealth building video you will ever see with ideas you can actually implement in your life!
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Chapters
00:00 Everyone Can Build Wealth
01:11 What Is Wealth?
02:28 Building An Emergency Fund
04:22 Developing A Basic Investing Strategy
06:54 Employer Sponsored Retirement Accounts
09:21 Individual Retirement Accounts
12:53 Brokerage Accounts
Many people think that having and build wealth is only achievable to people of high income; however, regardless of your income level, if you can develop basic knowledge in financial planning, investing, and the stock market, then you can build wealth in your life. In this, in this video I discuss wealth and various forms to build it in your life.
1. What Is Wealth?
Our view of wealth is often distorted because we believe that a wealthy person is someone who is a big spender and has a bunch of nice material possessions; however, this is false. Real wealth is having financial knowledge, assets that make you money, limiting your liabilities, avoiding debt, and having a long term mindset. Wealth is about creating a financial plan where money doesn't hold you back. In order to build wealth in our own lives, we must see wealth for what it is and focus on building real wealth.
2. Building An Emergency Fund
I personally believe that before you start investing in the stock market, outside of 401k plans, it is extremely important to build your emergency fund. An emergency fund is a financial safety net to protect you against life's emergencies. Ideally, this should be 6-12 months of living expenses. And the reason I believe it's important to build your emergency fund first is because you never want to be pressured to take your investments out at a loss. Before focusing on really growing your money, it is important to make sure your emergency fund will protect you against life's surprises.
3. Developing A Basic Investing Strategy
When it comes to the stock market and investing, I believe in following the Warren Buffet approach, which is invest in index funds and dollar cost average. Index investing is a passive form of investing that has historically had an average return of 10 (though not guaranteed). Dollar cost averaging is an investment strategy where you spread out your investments over time. In the long term, over the course of many years, this basic investment strategy should help you build your wealth. It is not a "get rich quick" strategy, but has shown to produce long term results.
4. Employer Sponsored Retirement Accounts
Once you develop your basic investment strategy, you can now invest in the stock market. The first account you should consider getting to help you build your wealth over time are 401k accounts. These are a pre tax investment accounts where your employer takes out a percentage of your pay before it is taxed and puts it in an investment account where you can invest in index funds and grow your money in the long term. In addition, employers often have matches with 401ks that will help you grow your money quicker. And although you don't pay taxes when you contribute money to these accounts, once you are eligible to withdraw, you will have to pay taxes. It is also important to know that if you withdraw money before you are eligible, you will have to pay early withdrawal penalty.
5. Individual Retirement Accounts
Another retirement account that can help you build your wealth over time are individual retirement accounts commonly known as the Roth IRA and the Traditional IRA. In this video, I focus on the Roth IRA. The Roth IRA is a retirement account you can open through broker like Schwab, Vanguard, or Fidelity. In this account you can contribute money that can grow over time and when you reach the eligible age to withdraw, the interest you gained isn't subject to tax. These accounts are extremely good to have because they have high tax advantages. These accounts are also subject to high early withdrawal penalty if you withdraw before you are eligible.
6. Brokerage Accounts
The final account that can help you build your wealth over time are basic brokerage accounts. Brokerage accounts are investing accounts where you can invest in stocks, bonds, mutual funds, ETFs, and CDs. In this video, I do not go in detail on these various investment; however, the stock market is a great tool to invest and grow your money over time.
**This video is intended for entertainment purposes only, none of it should be interpreted as financial advice. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. ** - แนวปฏิบัติและการใช้ชีวิต
What's another way to build wealth on a low income?
Stay away from credit card debt to buy frivolous things. Credit cards gag and bound. When a bank says you have been preapproved they are actually hoping you become in addict of debt. I can't stress this enough IMO. Been there myself. A sad and sorry state.
@@daviddean6032 I totally agree. Currently trying to dig myself out. smh.
Use your local library for free education and volunteer opportunities in your local community to build "social capital". When adversity strikes and you have proven yourself as an honest and worthy member of your community most likely someone will be there to assist you. Many wealth building opportunities are not openly advertised. They are disguised as work. And some people avoid hard work and therefore miss opportunities to learn, grow, experience life and yes, build wealth.
1. Find Gig apps you can turn on and use to get paid for your time…
2. Use tax return if you get back any funds.
3. Get a part time job (Journey of the Broke)
4. Pan Handling in a different town.
5. Find a cheaper rent to save the difference.
@@juliem.3936credit cards are a good thing to have
If you are planning for retirement Here are some key pointers. Firstly, kick-start your savings early to benefit from compounding. The longer your money has to grow, the better. Secondly, make the most of retirement accounts like 401(k)s and IRAs, especially if your employer offers a matching contribution - it's essentially free money. Thirdly, diversify your investments across different assets to mitigate risk. Think stocks, bonds, and real estate.
Great advice for retirement planning! Starting early and taking advantage of employer-sponsored plans can make a huge difference in the long run. And diversifying investments is crucial for managing risk. Thanks for sharing these valuable tips!
Spot on! Planning for retirement is crucial, and these pointers are gold. Diversifying investments is a key strategy plus, having an investment expert by your side can really help navigate the complexities and optimize your financial plan.
Absolutely! Diversifying investments is crucial for long-term success. Having a fiduciary has been transformative. She navigates market fluctuations, identifies opportunities, and keeps me on track for retirement. Her tailored advice boosts confidence and informed decisions. Trusting her skills brings peace of mind, ensuring my future is secure.
That's truly remarkable. I hope you don't mind pointing me towards her direction.
I don't mind, she's Sophia Elaine. One of the finest portfolio managers in the field.
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
Vey accurate from your POV, It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into investment advisors for a strategy that suits your goals
wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
Natalie Lynn Fisk’ is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Not making up to a million before retirement is unfulfilled retirement.!! I’m 50 and my husband 55 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early, even till now we earn weekly.!!.
Credits to *ROCHELLE DUNGCA-SCHREIBER,* she saw me through the process. You can glance her name up on the internet and verify her yourself. she has years of financial market experience
What I think everyone need is an adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit. With this I feel anyone can basically achieve financial freedom.
You better hide your money in a sub s or llc corporation. One major sickness or accident can wipe you out now days.
only 3 million? my wife and I have 10 million.
I didn’t take any business classes in college but got a sales job at Vanguard. I learned so much in the years I worked there. Not just the principles you shared here, but I spoke to thousands of millionaire clients and I’ll tell you right now 90% of them became millionaires by doing the steps in this video. The only caveat I’ll add is I also noticed about 60% of them started their own businesses rather than working a job. Also important to note none of the businesses were sexy. I talked to barbers, house cleaners, painters, roofers, chemical suppliers, etc.
If you don't find a means of multiplying money, you will wake up one day to realise that the money you thought you had, has finished. Investment is key.
One of the best financial presentations of all time! And I am a 35 year career finance professional. Austin is 100% correct, he has some real wisdom here. Use time, compound growth, dollar cost averaging, low cost, diverse, etf or index funds. FYI - I used Vanguard VTI as my main asset 401K / IRA engine. Look at it in 3 or 5 year terms. Do not fear the stock market, but accept it's ups and downs. Remember, you only lose when you sell, don't be frightened by all these negative commentators. It worked for me, as I am in the retirement stage now, and still investing for the long term 100% in VTI (for heirs).
Excellent comment, Mike. What I do as well as if the market dips I have a little extra saved to put a little extra into the stock market in a balanced fund within my TAX-FREE SAVINGS ACCOUNT. TFSA is available to Canadians but it's good for me. I agree do not look at the short-term ups and downs as the markets will bounce like a basketball until the end of time.
It's not the sexy way to do it, but it's the way that actually works!
FIAT ???
I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made millions from the recent 2008 recession and I was wondering if such success rate could be achieved in this present market. and the Federal Reserve taking a more hawkish approach to interest rates and bond purchase tapering. Any recommendations?
@Elizabethadams712 wow! I just look this person up out of curiosity and l'm super impressed with her qualifications.thanks for sharing
I’ve got four traditional brokerage accounts. One earmarked for retirement with growth funds, one for medium term goals (think new car or house) with growth funds, one for swing trading, and one for shareholder perks (cruise line stocks so I get my on board credit). I was lucky to come across the ads of a company called "ferrochrome securities" They organised my wrecked finances and made me set priorities. Cumulative now I'd say I've grown over 220k with their help and still growing. Next goal now is owning my first rental property. The journey becomes exciting once you start. My advice is to anyone who thinks they're too old is to start today, right now. It's never too late trust me.
so why are you watching a low income video?
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $650K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.
That’s why I make it a point to speak with a financial advisor before choosing any investments. I’ve been using one since the pandemic, using profits oriented tactics and minimizing risks as a buffer against inevitable downtrends. In addition they have access to insider knowledge and analysis, making failure virtually impossible for them. I’ve made about a million working with my advisor for over three years now.
@@ThomasChai05Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Credits to "Gertrude Margaret Quinto", she maintains an online presence. Just make a simple search for her name online.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
If possible, live with your parent(s) until at least 25 yrs old. Help them around the house/apartment in exchange for rent. Then save 80% of your paycheck for your emergency fund and invest in a Roth IRA. Doing so will help set you up for success.
Make a video on how to retire in 7-10 years with low income 💯. Great content 👍🏼
Good morning, Mr. Austin Wiliams! No grass grows under your feet and I can't wait to watch this new video of yours as I'm 64. Thank you and have a great day and let it be known I appreciate all your videos.
My investments: Paying off debt, It has a return on investment equal to the money you would have paid in interest. Get rid of/reduce all recurrent bills possible.. Invest in things that lower your cost of living. Rainy day money that keeps you out of debt ( A backup of one month's costs ). An emergency fund for major things.
...and he knocked it out of the park again!
Great video
Thanks
Very sad that 4% is now considered high. In 1990, 10-11% was normal. Now they pay 2-4 and charge up to 30%. We’ve been had.
Yeah, I guess inflation would be hard to control if everyone was getting so much interest on savings.
@@ElAgustin if lots of money were parked in savings accounts with higher interest rates, that would help decrease inflation, it would be cash that's not circulating.
Outstanding! Thank u for the Roth info .
YES PLEASE make a video on brokerage accounts. That is what I'm looking to doing next. Thank you for this video.
Thank you! Loved this, I wanted clarity and this was perfect!
Excellent video, dude. The presentation was comprehensive, helpful and so easy to understand. Each segment was great, but perhaps the best for most people was the explanation of the term "wealth." Great job.
Thanks! This one was a pretty big edit. Over 200 pieces!
New subscriber here,Austin! Please keep uploading great financial content like this one. Thank you.🙏🏽
Thank you so much! This was so informative and you do such a great job explaining everything. I also like using secured money orders to save money because unfortunately when you are on a fixed income in my state there is a limit to how much you can have in the bank at one given time. I always hated that because it almost discourages you from saving and encourages you to spend. Keep up the great work and God bless you
yusss!!! looking forward to watching this one!!! thank you
Thank you . I am on the right track, with my 401 k matched by my employer and a supplemental retirement .
Your videos are so helpful. Thank you for sharing your knowledge. 🙂 I started watching your videos a few months ago and I am already seeing positive shifts in my finances. Muchas gracias!
Great! It makes life a lot more enjoyable!
thank you
Austin, well done, man. Dollar Cost Averaging- like that!
just another great video austin, love the finace stock talk stuff...gets me all giddy!
Investments in stocks real estate and businesses are one of the most effective ways to up your financial game. No one wants to retire at 60 and still have financial issues. The plan on everyone's mind is to retire and be free financially
I am very interested in your stock market strategy videos. Thank you for your advice and guidance @Austin Williams
lol love this channel though. you're a great teacher.
Putting the max you can match in 401K, til it hurts , after have emergency fund then if you are hurting a lot and can't get a side gig can decrease matching for a while. It's a bit of a mind game but NOT hitting the emergency fund helped me. Developed a neuro muscular disease and had to stop working at 58, took 3 yrs to get disability. Lived on $500/mo and food stamps during that time. Home needs massive rehab but free and clear. Now have disability payments until fed fails so still living on the least I can, replenished IRA, did CD, local savings account, and did some rehab work.
Poverty is a state of mind,explore ways that work for you.
It's easy to redefine what wealth is to suit low aspiration/low income lifestyle. But in reality every quality of real wealth you described can be attained by actual, tangible wealth, re.high networth individuals.
Thank you for such a practical explanation that an uneducated person can understand and make use of. I am grateful for your videos
I appreciate it! It's all very simple stuff once you understand it!
Excellent video. I’m trying to teach my 19 yr old daughter about all of this. She lives at home. Do you think she needs an emergency fund?
Thank you 🙏
Veery Nice
Great video
WOW! You go boy! GREAT video! This comment is for the algorithm ☺️ Edit: I'm interested on how to invest in stocks.... I'm hoping for a longer video on index funds.
Thanks! I appreciate you always watching, Toya!
We have an emergency fund, but it's in categories. We also have an emergency category, just in case it's a bigger emergency than my categories have in them. If my husband loses his job, we will be fine.
Health Savings Accounts are also great
AMAZING 👏🏼👏🏼👏🏼 THANK YOU AUSTIN🤍
Thanks!
Excellent video!
Thanks!! And thanks for sticking around this long. Once this is all said and done, f we ever meet in person, I'll get you a coffee! haha
@@ElAgustin Of course! Deal 🤝😁
Everything is better than debt living paycheck to paycheck. I use some bank services but that online bank is a great option for many people. 4% works as an investment account and use a physical bank for emergency account and daily use. The other investing is fine too but it is possible to lose money or earn well below 10% so avoid counting unhatched chickens. You could die before accessing that ira. Ira or 401k isn't all bad but it is a scam used by employers to dodge giving pensions.
Would love to know more about Brkerage Accounts.
Excellent ideas of emergency fund and 401K employer match! I'd be interested to know how you manage your $60,000 investment portfolio.
This is all so true! The Warren Buffett way is the true way to build wealth. Dividend stocks is where it's at.
That was extraordinary 🍀
Thanks
@myoutube-channel That’s THE plan ☺️
That was a bot, sorry! I'm El Agustin!
Let’s make the; how to invest in the stock market video please?
Good video! Capital One savings is currently at 4.20%
Watch your Banks is Capital One on the list for FAILURE! ???
I'm assuming before we do anything in the video, we pay down any high interest debt? or all debt?
Love it!!!! Such a wise person..just love your videos… Young people listen to what Austin has to say about life and your finances…It’s all very true..
I appreciate it!
GOLD and SILVER..............."INTRINSIC VALUE" (Hold Maybe 20-40%)
1) DURABLE 2) DIVISIBLE 3) CONSISTENT 4) CONVENIENT
5) VALUE IN IT SELF. by:Aristotle
NOTE: Money......Article 1, Section 10 ???? Thanks, Austin
Wealth building can be for just about anyone. Being a truck driver for 35 years I never made a lot of money but I invested and saved it and what do you know society let me play 😂 oh, no education but contentment! It worked! Easy cheesy! Looking back I’m happy I never pursued education I didn’t need it. I see lots of educated people puffed up with pride and ego disease. Not all but a lot. I enjoy your channel young man . Thank you
My grandpa never made over $50k a year in his career, but retired early and is extremely comfortable. I feel like people who make higher incomes can sometimes be worse with money because they don't feel like they need to budget.
I disagree about the index funds. I prefer div growth etfs because these will eventually give you salary replacement and allow you a constant stream of income. You can also give it to your children as inheritance and as long as they continue to grow it like you eventually even your descendants wouldn't need to work a day in their lives.
In contrast to that, with index funds you still need to time the market, like if you looked at index fund values in 2019 vs 2020 then you know you should have sold in 2019.
Knowledge is power. 🧡 🐪
You are excellent at explaining things! This is coming from somebody who's had zero knowledge when it comes to financing. If I can grasp what you're saying in this video, everyone else should be able to as well!
I really wish I knew this information when I was younger. I've already lost 10 good premium years of my life for saving. I'm hoping I can overcompensate now so I don't have to be working until I die.
I wish this was the same in the UK. They take tax off all your pension withdrawals which is awful when you've already paid tax on it once. :/
You get tax relief paying in and 25% of your pension pot is tax free whether you take it in one hit or take 25% tax free each time you make a withdrawal. And in addition you dont pay tax on the first £12580 of income per annum If you dont want to pay tax use ISAs. In the UK we are very lucky with our tax breaks im afraid your understanding is not correct.
@@Michael-wr1yy Thanks for setting me straight. All I hear anyone ever complaining about is that you get taxed twice and the Gov rips us off, so it's good to know there are some advantages.
@@Michael-wr1yy Just a thought. Does that 12580 include the state pension as well as a private pension? I am assuming the state pension also counts as an income when it is paid out. ie if you are paid your state pension and for instance it comes to 12580 would you be taxed on any of the 75% you take out of another pension per year unless you put it into an ISA.
We also have S&S ISA’s in the UK though. You invest your post tax pounds and all growth in this account is tax free when you drawdown. We defo have a lot of tax benefits in the UK too, just different forms 💕
Hi Austin great points My wife has a 401k but the company does not have a match, she is almost 54 yrs. old, If you were like her would you still contribute to the 401k? She contributes 5% thanks keep up the great work.
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. All roads have pointed to the equity market of some sort which is a good idea buh where else should I put money besides the equity/stock market?
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
Speaking with an advisor helped me stay afloat in the market and grow my portfolio to about 65% since January 2022, and in a couple months, I was able to earn over $350K in net profit They have strategies that are specifically suited to your long-term objectives and financial aspirations.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
I started out with an FA “Lisa Ann Moberly”. Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a FA.
I looked up the name and came across her web page, I went through her resume and I must say it was quite impressive. I reached out to her and I have scheduled a call with her.
You can do that, if your country doesn't forbids to buy foreign papers. In my country you can only buy few foreign stuff, but only if you have 70k dollars, if you have invested $70k, or if you have higher economical education that says that you're an analytic now. Sounds like low income, right?😂 With the average annual income with 3 500$ in my country.
is the roth IRA from robinhood worth it?
I'm interested in the investment video. Please consider making it. 😊
Will do!
My man. I would just like to tell you something you don't know. I work at Walmart and do the 401k matched for 6%. I contribute 50%(the max they allow) to this. So I'm saving 50% of my own plus their match of 6%. Now the part you don't know.
I'm able to contribute my portion as Roth and the portion they contribute is still traditional. I am not sure but I think this is a relatively new thing.
I would also like to say. I invest all the money I make working at Walmart. I also go to college for free through Walmart. For computer science. Plus I get discounts and other perks. It's quite the side job for real
@@dreamleaf6784you are very smart for taking advantage of the opportunity available to you!! Congrats! Computer science is a great major!
@@Nikolasto77 thanks. I'm trying to be a role model. Because some people just feel hopeless.
@@dreamleaf6784 Exceedingly proud of you. Keep doing what you are doing and when you are my age (64) you will be quite content.
@@daviddean6032 I'm working on it. i'm 39. So its better late than never. I didnt have opportunitys that are so good like I do now.
Thanks for the advice, I’m currently investing as we speak started my brokerage account this year I own shares of several companies I even received dividends from my investments 👏
No gurantees and to wait for 6 to 12 month of living expenses can take a decade
Don't finance consumer lifestyle like a cars, holidays, motorcycle etc.. Never carry a credit card balance. Live below your means. Save at least 10% of your income and don't touch this unless there is an EXTREME emergency e.g. you lose your job and need to pay bills.
Tax deferred not tax free.
I think rich people do have real wealth, but they flaunt the superficial because that is what rich people do.
❤❤❤
no new information and video over 15 minutes..🙈
This is the kind of video I have been looking for. I know about 401ks and Roth IRAs, but I went the route of investing into those accounts before building a solid emergency fund. My goal is to get up to that point by next year. I'm just starting, but my goal is to get to a 3 month emergency fund while paying off my student loans. Once I get to the 6 month emergency fund, I will start to invest as much as i can again.
Awesome! Good luck on your journey!
You failed to define a low income versus average mean income versus upper income.
Excellent job, Austin! I would love to see a breakdown of the stock market: What are stocks exactly? How predictive of the future is past performance -- with the world changing as rapidly as it currently is, is wealth creation via the stock market something we should count on? If not, what are other options? Finally, how do people in other countries plan their financial futures? It seems in the USA we're individually on our own: if you make 'smart' decisions, great. If you don't, you're on the street. As a society, is it right that the stakes should be so high given that most people don't have a high level of financial competence?
It seems similar to the UK overall
Could you possibly explain the difference between Index and Mutual Funds, please, Mr. Austin Williams? And when, perhaps, one is better than the other taking into age. I absolutely loved your video today and if only I had someone like you to listen to when I was in my 20s and 30s and even 40s. When I was a young man, an older man said to me, "Keep your dollars safe and your coins will look after themselves." I didn't understand back then. But then again, I didn't have you, Mr. Williams.
Thank you for all your wisdom and advice. I try to follow your suggestions and i'm so delighted that my emergency fund was the first thing i saved for. Who can forget your aborted countryside video when your car broke down. The same thing happened to me last week and although really annoying until i get my car back at least not the total financial disaster it would have been before i became one of your disciples.