The 50-20-30 rule makes no sense to me. I am solidly middle class in a 2-income above-median household with no debts, save about 20%, and there is only about 10% left for wants, not 30%. And I'm relatively privileged. The median household would have an even harder time doing 50-20-30 than I do, since Needs make up an even greater proportion of the budget. I assume that a more typical budget is 80-5-15. So many people are paying 60% on just housing and transportation. Forget food and medicine.
Agreed. Just my rent (which is *extremely* reasonable because I've been in the same place for a long time -- an equivalent place now would probably be at least 50% more than I'm currently paying) is about 33% of my take-home pay. Groceries are another 13%. Fixed monthly expenses (phone, internet, tenant insurance, bus pass) are another 13%. That's 59% right there without getting into things like toiletries, cleaning supplies, clothing... I try to save at least 6% of my take-home pay, but any more than that is extremely tricky. And I've got a solid 9-to-5 stable office job. I can't imagine what my friends making minimum wage / part-time work are doing.
My partner had a hard time realising that this 'rule' his parents told him didn't actually work irl. We're dual income, no debt, decently priced rent too where cost of living isn't the worst. Half his paycheque still goes just to rent and utilities, growing up working class actually helped me more because I'm used to making cuts and not living like more affluent people around me.
I think it must be viewed as a regional/relative thing. My household is upper middle class based on the national average, but because we live in a relatively low cost of living area, we're able to save about 40-50% of our income. That same income level up in NYC would see almost all of that excess sucked away into housing.
It helps as a guardrail rule. It means you're in a precarious situation if your spending exceeds 80 percent (50+30) of your income. For example, I knew that I couldn't afford expensive wants if I couldn't find a way to keep my housing cost down. I just didn't assume that I could live wherever I wanted, and knew when I had to move back in with family to be okay. Otherwise, I might have spent almost on autopilot, based on what I "should" have been able to do.
I just wanted to say that this format is great! Honestly I tend to watch only the videos with Chelsea (haha probably just because I like familiar and I'm used to it), so to have you introducing and coming back at the end really "eased" me in to this awesome video. I trully enjoyed Nika's take!
As soon as this alert showed up I clicked. We are struggling out in these recession streets. Gas is rising once again and cost of everything is expensive.
The 50-20-30 budget sounds like a dream. Coming from a 100-0-0 situation I find it extremely hard to spend that much on wants, even when I can afford it. Having worked my way up over the years so that I could have afforded 50-20-30, I still lived by maybe 50-48-2 in fear of needing the saved money one day. And luckily so, as last year I experienced a severe financial setback after months of illness, bringing me right back to 100-0-0. Now it's living outside the city, no car, no wants, till I have worked my way up again. If you are one job loss or illness away from starting at the beginning again and have no help in the background like a financially stable family who could help out, how is 50-20-30 realistically achievable in the long term?
IMHO, one of Nika's points is really important- to the best you possibly can, do not stop putting into your 401k or IRA. Recessions are great times to invest as opposed to sell. As much as there are people who think the system is about to collapse- I'm not sure there's a realistic possibility of that. There has been more than one adjustment in income balance over time- moving from the top to the bottom back to the top- and in all of that time, the market expanded. And her suggestion to invest *if you can* goes right along with that. There's kind of a sick old saying "buy when there's blood in the streets"- but it applies to recessions.
You don't "lose money" in your portfolio when the markets are down. Your portfolio will change in value depending on how much people want your portfolio of stocks. Always expect that these prices change in value daily, monthly yearly. What matters is the change in 5, 7, 10 YEAR increments since first purchase.
Exactly, it's these kinds of misnomers that cause people to fear and overreact by selling to lock in their losses. Educate yourselves financially, people!
I see a recession as an investment opportunity (i invest into a roth) since stocks are low, and you can buy more with your money, which will pay off later when it goes back up.
Yes, the worst possible thing you can do is pull out of the market during a recession. Leave it in there! Other than those with stock in companies that completely failed, people who did so in 2008 would have made that money back in a few years and most would have exceeded it after a few more. Never make a panic decision on when or where to move your money!
More like make sure you are in an industry that is recession and AI proof- like working as a mental health professional because people need that human interaction in therapy and there is more mental health problems during a recession.
@@kristinapaxton9686 is intresting you say so. I am a psychologist (in Mexico) and my salary is barely enough to cover basic needs. The first thing i stopped spending was my therapeutic process
@@kristinapaxton9686 mental health professionals tend to be more protected from recessions but what tends to happen instead of getting laid off is wage stagnation. And this is for the ones working for someone else. If you have your own private practice, unless you already catered towards clients who have high incomes, you start to see a drop in clients or more people who need to be seen on a sliding scale. Usually the ones that aren't that affected are the ones working with clients with Medicaid since those clients don't have copays. But for people with insurance who don't have Medicaid, they usually have a $40-50 copay and if that's for a session a week, that usually tends to get cut first if times are rough.
Like the format. I found this very informative and helpful. Nika was a great addition to TFD this week! Such great energy. Also, I think I need her skincare routine! She glows!
I've always loved how down to earth and realistic TFD videos are, but I've always struggled to implement the advice in my own life because of the career I'm in. Would you ever consider a video about budgeting geared towards people in creative careers, like theatre or music? Work is much more volatile and less predictable in these fields, and because of the need for flexibility, the types of survival jobs we get have less predictable income too.
I used to work as a camera assistant in the film industry, which was heavily influenced by the seasons and the exchange rate. My advice is to save every cent that you can so that when you don't have work you don't go into debt. I also was lucky enough to have a flexible second job working in a restaurant, yes it meant that I had to give up evenings and weekends sometimes, but it definitely helped in months that I was not filming much. You have to be extra careful with your money, because you don't know how much you will make each month. Conventional financial advice is too cookie cutter.
The Savings Rate just collapsed down to 2.2%, the lowest level ever. Means Americans are running out of money. Last time it was this low was 2006-07. Right before GFC. Major Recession Warning. Expect a big decline in consumer spending in 2023. In five years, I would be retiring or working less hours, so I'm just curious about how people divide their income-specifically, how much goes to investments, savings, and consumption. I make about $165K a year, yet there is now nothing to show for it.
As with any big financial decision , it’s important to keep your guard’s up for economic risks. However, smart planning ,time management and seeking advise from a financial adviser can help keep you and your money safe.
@@lisaollie4594 Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Aggressively paying off my student loans helped me get real about my budget. I'm able to live on half my regular income (no partner just me) if I need to. Yes food is more expensive but there are ways to still be healthful and monetarily wise. I would encourage you to do a month of tight budgeting specifically with food and you'll be surprised how much you're wasting or where you can be more economical. One "hack", as an example, is to cook up some spaghetti sauce and freeze part of it so it doesn't go bad. You can eat on this several times through out the month and helps in a pinch so you're not spending money eating out when you "don't have time".
This! I love freezing things for later. I treat myself to pizza once every couple of months and freeze the leftover slices, then I have a fast "treat meal" when I'd otherwise want to go out. The key to awesome frozen food is to learn how to package and reheat it. (For pizza: Thaw in the fridge and reheat in a skillet on the stove. It's actually better than fresh pizza, I think.)
Having lived and worked in the US it's interesting the real issue of most not seemingly knowing a want from a need and living on credit is what the huge issue particularly in US is. I work in Finance and so many can't cover needs because they place wants first. Getting a new TV is not a need, eating out 6 days a week is not a need. That is a bigger issue with mass addiction to consumerism.
I'd say this is a basic beginner budget not necessarily a recession budgeting tool. 30% of your income on wants, more than savings and debt...when life gets more expensive.is asking to be In a tough spot. Reversing the savings and wants category will give more wiggle room and sense of security while also allowing reserved spending
I am shocked every time I see in comments that Americans spend on groceries on average 10-13%. I live in Romania and one of the wonders of the European Union is the tacit alignment of prices in most countries even though incomes are on average 2-3-4 times lower in many countries. As a result of this, if you don't eat bread and potatoes all month you end up spending at least 20-25% of your income on food, if you manage to be very careful, never eat out and only buy products that are on various offers. Not to mention the ridiculous price increases on gas and energy since the whole war situation started, that ended up being 50% of incomes for some people in the winter months. I guess that I still watch these videos in hope that some day it will be relatable for me again.
Though this video mostly feels like a repeat of the Budgeting 101 type content we've seen a few times already in this channel, the bare bones budget section was helpful for recession thinking, and it's a good solid video to save and keep handy for future use. Love Nika too!
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
A strategy to protect against inflation is through the U.S stock market, especially the S&P500 & various ETFs. Investors must know where to put their money and how to distribute it in order to protect it against inflation while still making a profit, especially during a recession.
The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
@@berkrix4312 Yes, a Fidelity financial advisor named "Christine Jane Mclean" put an end to my fears about investing, and after making more investments, I was able to reach the high six-figure mark in less than 3 years. A licensing advisor satisfies the necessary security criteria; hence, reimbursement is guaranteed if I'm dissatisfied with the service, so I'm much better off hiring one.
The things I don't understand are, how I see people filling restaurants, for breakfast lunch and dinner, eating at fast food restaurants, how can ya'll keep affording to do that? Plus all the newer cars? I live in a minimum wage town. How are people doing it? There was a time when it was cheaper to eat out, however not anymore.
@@mickylord21 I don't get 40 hours . Most of us retail girlies only get 10 to 15 hours but they aren't consistent so you can't get another job I get paid $7.25
My advice is to look for a job and if it seems like you are or may be struggling to get an employer to give you a job offer then you may just need to find a job, any job, to get some money in your pocket while you keep looking for the actual job you want. Especially if you have student loans looming and will need to start paying them back soon. A job is better than no job.
Don't be discouraged if it's hard for you to find a job after school. Find smaller technical certifications that make you better qualified for introductory jobs. Do not be ashamed to accept a position which you obtained because of "who you know". Friends and family are some of the best resources in trying to find a job which suits you, despite the "nepotism baby" criticism which the internet loves right now. Buy frozen fruits and vegetables and frozen "fast food". Chicken nuggets in an air fryer, if you can afford one, are cheaper and taste similar to fast food - which is not generally too cheap of an option these days. Eating out can be one of the biggest and easiest expenses to cut. I'm a Biology major and had a very difficult time finding a job after graduation in my field. 1-2 years after graduating I'm now in my field and love my job, but still make a minimum wage - I made more working in a grocery store. I know computer science majors who have had a much easier time finding a high paying introductory job, so I wish you the best of luck. Keep your head up, keep your confidence, and make the best decisions you can for your mental and physical health.
Use your career center to the max. This is an underused resource on college campuses. Be open about where you are in your professionalization journey. If you haven't had many internship opps, list significant class projects and extracurriculars. Network early! (4 months out). This can look like informational interviews. Once you graduate, you won't have access to college resources, so use them while you can. Reframe: maybe your first job out of college won't be what you imagined, but focus on gaining key skills that can be applied across industries. All of this requires time and effort and can feel like a lot, so ask for help and ask early. You got this!
I will add that if you have a hard time finding a job, look into recruitment centers. They could get you started with temp jobs to get experience. The good thing is you have a great degree
I graduated during a recession as well (2008 recession). I was one of the fortunate ones at the time who managed to get a full time entry-level job offer in my field for my first job, which has since blossomed into a 15 year long career. If you haven't already done so, establish a good rapport with your professors. I'm not saying to suck up to them unnecessarily. Just make sure they know your face and understand what kind of person you are. Visit them during their office hours if you have any questions on your assignments. If you didn't have any luck getting internships, see if your comp sci department is hiring any work study positions to do even simple stuff like office admin work. The key here is for people in your comp sci department and professors to know you so that you are one of the first people on their minds if any job opportunities come across the professors' desks and they will be more willing to vouch for you and write letters of recommendations. My company recruits from universities all the time. I landed my first job because one of my college professors invited me to be the student presenter on my senior design project at a networking event he was attending. One of the event attendees was so impressed by my presentation that he offered me the job on the spot. While being good at what you do is crucial to performing well at a job, networking and knowing the right people are even more important to getting your foot in the door and landing said job. Good luck!
As a doomscroller, I'm stoked for this series. One of my values is peace of mind, so I plan to save more than I "need" to, when I can. Thanks for starting this series. Can't wait!
NO WAY THE PHANTOM TOLLBOOTH IS MY FAVORITE BOOK OF ALL TIME TOO! Sorry for all caps but ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh never heard another person say that! It's the only book I can reread because I genuinely get something from it every time!
This is definitely one of the things where it's better late than never. Yeah, it's not as good as if you started in your 20s, but what's the alternative? Just not planning for retirement at all? That's a quick trip to never being able to retire. Get started whenever you can, no matter how "late" it is! The general advice stays the same, but the later you start, the more aggressive you may want to be as far as how much you're putting away.
Thank you for the advice. The “happy” tone made this one a bit grating to me. Recessions mean a lot of people lose their jobs, and a big percentage will enter poverty. I realize that there’s other channels that capitalize on people’s fear (“Recession! Be afraid!”). There is a spectrum between that and this. Imagine if that tone was used for a “How to prepare for cancer” video.
The #1 thing that makes me not want to watch TFD guest videos, is the bad the sound quality. Get your guests some better microphones! It’s always so tinny, piercing loud points and echoey quiet parts
Thanks for pointing out the big opportunity in buying stocks of your valued companies when the markets are down, like during a recession. Stocks on Sale!
Its always a good time to buy a house if you have the money. The future is unpredictable. If you have enough for a down payment, but you're assuming your savings wont hold up with a job loss, then no, don't do it. If you have enough and you can afford a fixed rate mortgage (and other variable costs) then yes, do it sooner rather than later and start building equity. Buying a house should involve both long term and short term considerations. Consider the equity you'll gain by buying sooner, consider your savings, and that will answer the question better than any random commenter or youtube video could tell you.
@@Nohandleentered not true. in ontario canada houses that were going for 300k in 2020 are going for 600k-800k. Debt is future income used today and you are basically giving up 500k of future income just to house yourself. Obviously it depends on where you live and and there are other factors but it is not always a good time to buy. that's objectively false.
Personally, I would wait. Right now, Sweden is expecting a 20% reduction in housing costs, and economists are thinking that will carry over to the US as well.
Yeah. I had a call with them, and they literally told me I didn’t need their services, which is actually really admirable. They gave me free advice about my current situation and goals, and suggested I consume free content.
Market is down actually, I've been looking into techniques and obviously both bull and bear economic situation gives equivalent road to accumulate monstrous additions, I mean I've known about individuals making up to $300k during this accident and I might want to know how.
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
@Dragon Jee I've actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it's gained since 2019, mind if I looked-up this one coach you use?
Ngl, kinda disappointed. I was hoping for something more than super basic stuff I read in a book in 2000, some of which simply doesn't work anymore (hello 50-20-30 rule, I wish I had ever gotten to apply you to my life). I guess if you already know the basics, there's nothing really more to learn? =/ Overall it was a decent primer on personal finance, it just wasn't anything I couldn't have found in a hundred other places, and that's unusual for TFD.
Financial independence is something that people spend decades trying to achieve. For the average American worker, this can be a slow grind of saving a few hundred dollars per month in the hopes of being financially free at sixty-five so they can finally enjoy retirement. The problem? You spent three or four decades at a job, waiting to do what you want. Buddy, INVEST if you want to crack the code to financial freedom, retire early. In three years, I've earned more than $5 million.
Congrats. My husband is 55 years old, and I am almost 42. We saved about $386,000 from our farm. We're thinking about putting half of our money into the stock market. Having said that, we have been tracking stock recommendations from TH-camrs, particularly Jim Cramer.
@TeresaBrickle I completely agree. I recall losing $120,000 in a savings account when my bank failed in 2008. I tried to get it out, but they refused. I was devastated and needed to invest as a backup plan. As a result, I sought the advice of an investment advisor. I recently received $148,000 in investment earnings. Credit to KATHERINE DUFFY BURKE
@GarrettDills You can find her by searching her full name online. She is well-known. She has appeared on Fox Business, Bloomberg and WSJ to discuss market and portfolio growth.
@@ThormanBoucher I looked her up, and she appears to be very competent, with a proven track record. I also discovered her website, where I left a message in the hope that she will respond soon. What a sight to behold!!
"it may be necessary for you to reduce your expenses to save money. A few examples of common expenses that you can swap to save money are: cable for one or two streaming services, name brand for a store brand or generic items, new clothes for thrift store or consignment shop, coffee shop coffee for brewing coffee at home, and of course, dining out for eating more food at home and taking your lunch to work. Whatever the expense, there's usually a less expensive alternative that can save you money." ---------------------------- right ... ok ... but ...... for the even harder cut because the reality of this capitalisthellscape ---------------------------- what is the less expensive alternative to: streaming services generic items consignment shop coffee at home (the coffee and the home) food at home (the food and the home) ??
*It’s no longer a story that the world is experiencing a global economic downturn I’m so happy that I’ve been receiving $64,000 from my $15,000* Investment every 8 days...
@@erichenry6683 The smiles on my family’s face is heart warming, every week when I give the news that our $32,000 biweekly profit have been received to our digital assets portfolio.. God bless Mrs Olivia Renae Marks and her trading services
I thought am the only one that knew her but I guess not because her good and honest deeds speaks for her now. Such a genius when it comes to investments.
Be brave, your heart will lead you the way, to a new version of yourself, full of love and light, finally you recognise the illusion of negative patterns of the mind and you are moving forward with great inner peace, much love to all of you 🙏✨❤️
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
A strategy to protect against inflation is through the U.S stock market, especially the S&P500 & various ETFs. Investors must know where to put their money and how to distribute it in order to protect it against inflation while still making a profit, especially during a recession.
The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
The 50-20-30 rule makes no sense to me. I am solidly middle class in a 2-income above-median household with no debts, save about 20%, and there is only about 10% left for wants, not 30%.
And I'm relatively privileged. The median household would have an even harder time doing 50-20-30 than I do, since Needs make up an even greater proportion of the budget. I assume that a more typical budget is 80-5-15. So many people are paying 60% on just housing and transportation. Forget food and medicine.
Agreed. Just my rent (which is *extremely* reasonable because I've been in the same place for a long time -- an equivalent place now would probably be at least 50% more than I'm currently paying) is about 33% of my take-home pay. Groceries are another 13%. Fixed monthly expenses (phone, internet, tenant insurance, bus pass) are another 13%. That's 59% right there without getting into things like toiletries, cleaning supplies, clothing... I try to save at least 6% of my take-home pay, but any more than that is extremely tricky. And I've got a solid 9-to-5 stable office job. I can't imagine what my friends making minimum wage / part-time work are doing.
My partner had a hard time realising that this 'rule' his parents told him didn't actually work irl. We're dual income, no debt, decently priced rent too where cost of living isn't the worst. Half his paycheque still goes just to rent and utilities, growing up working class actually helped me more because I'm used to making cuts and not living like more affluent people around me.
I think it must be viewed as a regional/relative thing. My household is upper middle class based on the national average, but because we live in a relatively low cost of living area, we're able to save about 40-50% of our income. That same income level up in NYC would see almost all of that excess sucked away into housing.
I'd personally say save at least 50% and spend no more then 50% AFTER EXPENSES.
It helps as a guardrail rule. It means you're in a precarious situation if your spending exceeds 80 percent (50+30) of your income. For example, I knew that I couldn't afford expensive wants if I couldn't find a way to keep my housing cost down. I just didn't assume that I could live wherever I wanted, and knew when I had to move back in with family to be okay. Otherwise, I might have spent almost on autopilot, based on what I "should" have been able to do.
I just wanted to say that this format is great! Honestly I tend to watch only the videos with Chelsea (haha probably just because I like familiar and I'm used to it), so to have you introducing and coming back at the end really "eased" me in to this awesome video. I trully enjoyed Nika's take!
Not familiarity for me, I love her cuz she's iconic and funny as hell lol
As soon as this alert showed up I clicked. We are struggling out in these recession streets. Gas is rising once again and cost of everything is expensive.
The 50-20-30 budget sounds like a dream. Coming from a 100-0-0 situation I find it extremely hard to spend that much on wants, even when I can afford it. Having worked my way up over the years so that I could have afforded 50-20-30, I still lived by maybe 50-48-2 in fear of needing the saved money one day. And luckily so, as last year I experienced a severe financial setback after months of illness, bringing me right back to 100-0-0. Now it's living outside the city, no car, no wants, till I have worked my way up again. If you are one job loss or illness away from starting at the beginning again and have no help in the background like a financially stable family who could help out, how is 50-20-30 realistically achievable in the long term?
How fun!! Nika had such great energy, thanks for bringing her on.
I really like the opportunity fund… I have a “buffer” fund for when I need to buy in bulk but I think I’ll rename the account to that!
IMHO, one of Nika's points is really important- to the best you possibly can, do not stop putting into your 401k or IRA. Recessions are great times to invest as opposed to sell. As much as there are people who think the system is about to collapse- I'm not sure there's a realistic possibility of that. There has been more than one adjustment in income balance over time- moving from the top to the bottom back to the top- and in all of that time, the market expanded. And her suggestion to invest *if you can* goes right along with that. There's kind of a sick old saying "buy when there's blood in the streets"- but it applies to recessions.
You don't "lose money" in your portfolio when the markets are down. Your portfolio will change in value depending on how much people want your portfolio of stocks. Always expect that these prices change in value daily, monthly yearly. What matters is the change in 5, 7, 10 YEAR increments since first purchase.
Exactly, it's these kinds of misnomers that cause people to fear and overreact by selling to lock in their losses. Educate yourselves financially, people!
I see a recession as an investment opportunity (i invest into a roth) since stocks are low, and you can buy more with your money, which will pay off later when it goes back up.
Yes, the worst possible thing you can do is pull out of the market during a recession. Leave it in there! Other than those with stock in companies that completely failed, people who did so in 2008 would have made that money back in a few years and most would have exceeded it after a few more. Never make a panic decision on when or where to move your money!
The best plan is not lose your job or get a pay cut. If you are already broke af, you already know how to get through a recession.
I was just reminding myself of this.
More like make sure you are in an industry that is recession and AI proof- like working as a mental health professional because people need that human interaction in therapy and there is more mental health problems during a recession.
@@kristinapaxton9686 is intresting you say so. I am a psychologist (in Mexico) and my salary is barely enough to cover basic needs. The first thing i stopped spending was my therapeutic process
@@kristinapaxton9686 mental health professionals tend to be more protected from recessions but what tends to happen instead of getting laid off is wage stagnation. And this is for the ones working for someone else. If you have your own private practice, unless you already catered towards clients who have high incomes, you start to see a drop in clients or more people who need to be seen on a sliding scale. Usually the ones that aren't that affected are the ones working with clients with Medicaid since those clients don't have copays. But for people with insurance who don't have Medicaid, they usually have a $40-50 copay and if that's for a session a week, that usually tends to get cut first if times are rough.
😂❤
Like the format. I found this very informative and helpful. Nika was a great addition to TFD this week! Such great energy. Also, I think I need her skincare routine! She glows!
I've always loved how down to earth and realistic TFD videos are, but I've always struggled to implement the advice in my own life because of the career I'm in. Would you ever consider a video about budgeting geared towards people in creative careers, like theatre or music? Work is much more volatile and less predictable in these fields, and because of the need for flexibility, the types of survival jobs we get have less predictable income too.
I used to work as a camera assistant in the film industry, which was heavily influenced by the seasons and the exchange rate. My advice is to save every cent that you can so that when you don't have work you don't go into debt. I also was lucky enough to have a flexible second job working in a restaurant, yes it meant that I had to give up evenings and weekends sometimes, but it definitely helped in months that I was not filming much. You have to be extra careful with your money, because you don't know how much you will make each month. Conventional financial advice is too cookie cutter.
The Savings Rate just collapsed down to 2.2%, the lowest level ever. Means Americans are running out of money. Last time it was this low was 2006-07. Right before GFC. Major Recession Warning. Expect a big decline in consumer spending in 2023. In five years, I would be retiring or working less hours, so I'm just curious about how people divide their income-specifically, how much goes to investments, savings, and consumption. I make about $165K a year, yet there is now nothing to show for it.
My portfolio has good companies, however it has been stalling since last year. I have approximately $600k stagnant in my reserve that needs growth.
As with any big financial decision , it’s important to keep your guard’s up for economic risks. However, smart planning ,time management and seeking advise from a financial adviser can help keep you and your money safe.
@@lisaollie4594 Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Look her up online; she has a website where you can get in touch with her and get to touch base with her properly to find out.
This channel inspires me to take control of my life and to not give up on my money goals
Aggressively paying off my student loans helped me get real about my budget. I'm able to live on half my regular income (no partner just me) if I need to. Yes food is more expensive but there are ways to still be healthful and monetarily wise. I would encourage you to do a month of tight budgeting specifically with food and you'll be surprised how much you're wasting or where you can be more economical. One "hack", as an example, is to cook up some spaghetti sauce and freeze part of it so it doesn't go bad. You can eat on this several times through out the month and helps in a pinch so you're not spending money eating out when you "don't have time".
This! I love freezing things for later. I treat myself to pizza once every couple of months and freeze the leftover slices, then I have a fast "treat meal" when I'd otherwise want to go out. The key to awesome frozen food is to learn how to package and reheat it. (For pizza: Thaw in the fridge and reheat in a skillet on the stove. It's actually better than fresh pizza, I think.)
Having lived and worked in the US it's interesting the real issue of most not seemingly knowing a want from a need and living on credit is what the huge issue particularly in US is. I work in Finance and so many can't cover needs because they place wants first. Getting a new TV is not a need, eating out 6 days a week is not a need. That is a bigger issue with mass addiction to consumerism.
I'd say this is a basic beginner budget not necessarily a recession budgeting tool. 30% of your income on wants, more than savings and debt...when life gets more expensive.is asking to be In a tough spot. Reversing the savings and wants category will give more wiggle room and sense of security while also allowing reserved spending
One recession proof thing and beyond we are doing is having 1 car payment at a time or none at times. Our current car payment is $324 a month.
Yes! At the start of COVID my husband and I paid off both of our cars because we didn't know how our job situation would be.
No offense, but that's not even a high car payment. Imagine those folks with a $500+ car note. Makes me twitch thinking about it.
@Matt Tran No offense taken. That was also intentional for the reason you stated... high car payments make me twitch.
I am shocked every time I see in comments that Americans spend on groceries on average 10-13%. I live in Romania and one of the wonders of the European Union is the tacit alignment of prices in most countries even though incomes are on average 2-3-4 times lower in many countries. As a result of this, if you don't eat bread and potatoes all month you end up spending at least 20-25% of your income on food, if you manage to be very careful, never eat out and only buy products that are on various offers. Not to mention the ridiculous price increases on gas and energy since the whole war situation started, that ended up being 50% of incomes for some people in the winter months.
I guess that I still watch these videos in hope that some day it will be relatable for me again.
wonderful video!! shes so well spoken and knowledgable
Though this video mostly feels like a repeat of the Budgeting 101 type content we've seen a few times already in this channel, the bare bones budget section was helpful for recession thinking, and it's a good solid video to save and keep handy for future use. Love Nika too!
I love Nika! This is awesome.
Came for the financial advice, stayed for the favorite books 😆 (Always great to hear love for Phantom Tollbooth!)
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
A strategy to protect against inflation is through the U.S stock market, especially the S&P500 & various ETFs. Investors must know where to put their money and how to distribute it in order to protect it against inflation while still making a profit, especially during a recession.
The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
@@EllenAbrex How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
@@berkrix4312 Yes, a Fidelity financial advisor named "Christine Jane Mclean" put an end to my fears about investing, and after making more investments, I was able to reach the high six-figure mark in less than 3 years. A licensing advisor satisfies the necessary security criteria; hence, reimbursement is guaranteed if I'm dissatisfied with the service, so I'm much better off hiring one.
@@EllenAbrex I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!
I have been using this method for a few years. It helped me save more once covid started and gave me the freedom to quit a job that I didn't want.
The things I don't understand are, how I see people filling restaurants, for breakfast lunch and dinner, eating at fast food restaurants, how can ya'll keep affording to do that? Plus all the newer cars? I live in a minimum wage town. How are people doing it? There was a time when it was cheaper to eat out, however not anymore.
Credit cards and debt for most
Did anyone else hear "The Minimalists" when Chelsea said "with a few exceptions"? 🤣
Really Loved ❤This! She make this topic so easy to understand and relatable.
My takehome pay is literally 150 biweekly 😭😭😭😭
Girly talking about $1000+
You're making $2 an hour?
@@mickylord21 I don't get 40 hours . Most of us retail girlies only get 10 to 15 hours but they aren't consistent so you can't get another job
I get paid $7.25
@@mickylord21 she is probably part time
This was such a great interview!
Thank you, I know it must be common sense, but I didn't know about a Sinking fund until now. I will start a Sinking fund account this week❤
Hi, i'm graduating this year with a degree in compsci this year. Is there any advice for new graduates during a recession?
My advice is to look for a job and if it seems like you are or may be struggling to get an employer to give you a job offer then you may just need to find a job, any job, to get some money in your pocket while you keep looking for the actual job you want. Especially if you have student loans looming and will need to start paying them back soon. A job is better than no job.
Don't be discouraged if it's hard for you to find a job after school. Find smaller technical certifications that make you better qualified for introductory jobs. Do not be ashamed to accept a position which you obtained because of "who you know". Friends and family are some of the best resources in trying to find a job which suits you, despite the "nepotism baby" criticism which the internet loves right now. Buy frozen fruits and vegetables and frozen "fast food". Chicken nuggets in an air fryer, if you can afford one, are cheaper and taste similar to fast food - which is not generally too cheap of an option these days. Eating out can be one of the biggest and easiest expenses to cut. I'm a Biology major and had a very difficult time finding a job after graduation in my field. 1-2 years after graduating I'm now in my field and love my job, but still make a minimum wage - I made more working in a grocery store. I know computer science majors who have had a much easier time finding a high paying introductory job, so I wish you the best of luck. Keep your head up, keep your confidence, and make the best decisions you can for your mental and physical health.
Use your career center to the max. This is an underused resource on college campuses. Be open about where you are in your professionalization journey. If you haven't had many internship opps, list significant class projects and extracurriculars. Network early! (4 months out). This can look like informational interviews. Once you graduate, you won't have access to college resources, so use them while you can. Reframe: maybe your first job out of college won't be what you imagined, but focus on gaining key skills that can be applied across industries. All of this requires time and effort and can feel like a lot, so ask for help and ask early. You got this!
I will add that if you have a hard time finding a job, look into recruitment centers. They could get you started with temp jobs to get experience. The good thing is you have a great degree
I graduated during a recession as well (2008 recession). I was one of the fortunate ones at the time who managed to get a full time entry-level job offer in my field for my first job, which has since blossomed into a 15 year long career. If you haven't already done so, establish a good rapport with your professors. I'm not saying to suck up to them unnecessarily. Just make sure they know your face and understand what kind of person you are. Visit them during their office hours if you have any questions on your assignments. If you didn't have any luck getting internships, see if your comp sci department is hiring any work study positions to do even simple stuff like office admin work. The key here is for people in your comp sci department and professors to know you so that you are one of the first people on their minds if any job opportunities come across the professors' desks and they will be more willing to vouch for you and write letters of recommendations. My company recruits from universities all the time. I landed my first job because one of my college professors invited me to be the student presenter on my senior design project at a networking event he was attending. One of the event attendees was so impressed by my presentation that he offered me the job on the spot. While being good at what you do is crucial to performing well at a job, networking and knowing the right people are even more important to getting your foot in the door and landing said job. Good luck!
Good video! C.F.; hair game is still strong!!❤
Learned something new, barebones budget. Definitely going to make one tonight
As a doomscroller, I'm stoked for this series. One of my values is peace of mind, so I plan to save more than I "need" to, when I can. Thanks for starting this series. Can't wait!
Nika is such a charismatic person! I wish she had YT channel
It’s coming! 😉💜
Thanks for stepping in Nika!
Love this series concept ty ladies
NO WAY THE PHANTOM TOLLBOOTH IS MY FAVORITE BOOK OF ALL TIME TOO!
Sorry for all caps but ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh never heard another person say that! It's the only book I can reread because I genuinely get something from it every time!
Any tips for late starters for retirement planning, or is late 30s too late?
@b1merio
The sooner you start the better, don't wait until your career takes off.
It's only "too late" when you are 65 and trying to retire.
Not too late!
As they say thebest time to start a retirement fund was 20 years ago the second best time is today.
This is definitely one of the things where it's better late than never. Yeah, it's not as good as if you started in your 20s, but what's the alternative? Just not planning for retirement at all? That's a quick trip to never being able to retire. Get started whenever you can, no matter how "late" it is! The general advice stays the same, but the later you start, the more aggressive you may want to be as far as how much you're putting away.
Bad Blood was amazing. It’s one of the few non-fiction books that I’ve ever really wanted to read, and it lived up to all of my expectations!
Thank you for the A DOWRY OF BLOOD shoutout and for always feeding us with such fab content!
Thank you for the advice. The “happy” tone made this one a bit grating to me. Recessions mean a lot of people lose their jobs, and a big percentage will enter poverty. I realize that there’s other channels that capitalize on people’s fear (“Recession! Be afraid!”). There is a spectrum between that and this. Imagine if that tone was used for a “How to prepare for cancer” video.
Really great video!
So much Cheers from the Pacific West Coast of Canada.less fear when you've Socialized Medicine, feel bad for you Americans.
Great tips!! :)
Can we expect too good to be true coming out with more episodes?
The Secret History was a great book. 👍🏽
omg is it going to be Miss be helpful guest hosting???
Phantom Tollbooth and The Secret History omg
The #1 thing that makes me not want to watch TFD guest videos, is the bad the sound quality. Get your guests some better microphones! It’s always so tinny, piercing loud points and echoey quiet parts
Thanks for pointing out the big opportunity in buying stocks of your valued companies when the markets are down, like during a recession. Stocks on Sale!
Nooo!!! February is my birthday month and I only want Chelsea 🤣 so be it, I’m open to learning always! Love you guys so much!!
999k subs make a wish 🥳
We’ve got a Ruth Goodman stan in our midst!!
So... Now's not a good time to buy a house?
Its always a good time to buy a house if you have the money. The future is unpredictable. If you have enough for a down payment, but you're assuming your savings wont hold up with a job loss, then no, don't do it. If you have enough and you can afford a fixed rate mortgage (and other variable costs) then yes, do it sooner rather than later and start building equity. Buying a house should involve both long term and short term considerations. Consider the equity you'll gain by buying sooner, consider your savings, and that will answer the question better than any random commenter or youtube video could tell you.
@@Nohandleentered not true. in ontario canada houses that were going for 300k in 2020 are going for 600k-800k. Debt is future income used today and you are basically giving up 500k of future income just to house yourself. Obviously it depends on where you live and and there are other factors but it is not always a good time to buy. that's objectively false.
Personally, I would wait. Right now, Sweden is expecting a 20% reduction in housing costs, and economists are thinking that will carry over to the US as well.
@@russwes7778 You proved their point. If you bought in 2020 when you had the money you would have equity now
@@vulpixelful yes bought in 2020 fresh out of school with $0 and $30 000 in student loan debt. Maybe i should've just been born earlier. sigh
beg your family and friends for money .... yup.... great advice.
I hate to have to b%$ch about your sponsor but really? A service that costs $3000 annually? That's more than my car is worth.
Yeah. I had a call with them, and they literally told me I didn’t need their services, which is actually really admirable.
They gave me free advice about my current situation and goals, and suggested I consume free content.
Market is down actually, I've been looking into techniques and obviously both bull and bear economic situation gives equivalent road to accumulate monstrous additions, I mean I've known about individuals making up to $300k during this accident and I might want to know how.
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
@Dragon Jee I've actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it's gained since 2019, mind if I looked-up this one coach you use?
@Dragon Jee Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially.
Humans are idiots making money required to B R E ATH
Ngl, kinda disappointed. I was hoping for something more than super basic stuff I read in a book in 2000, some of which simply doesn't work anymore (hello 50-20-30 rule, I wish I had ever gotten to apply you to my life). I guess if you already know the basics, there's nothing really more to learn? =/ Overall it was a decent primer on personal finance, it just wasn't anything I couldn't have found in a hundred other places, and that's unusual for TFD.
Why are debt payments in the Savings section? Surely, they should be in the Needs section, since you *need* to pay them?
999k followers!!! Omg!!!
6
Financial independence is something that people spend decades trying to achieve. For the average American worker, this can be a slow grind of saving a few hundred dollars per month in the hopes of being financially free at sixty-five so they can finally enjoy retirement. The problem? You spent three or four decades at a job, waiting to do what you want. Buddy, INVEST if you want to crack the code to financial freedom, retire early. In three years, I've earned more than $5 million.
Congrats. My husband is 55 years old, and I am almost 42. We saved about $386,000 from our farm. We're thinking about putting half of our money into the stock market. Having said that, we have been tracking stock recommendations from TH-camrs, particularly Jim Cramer.
@TeresaBrickle I completely agree. I recall losing $120,000 in a savings account when my bank failed in 2008. I tried to get it out, but they refused. I was devastated and needed to invest as a backup plan. As a result, I sought the advice of an investment advisor. I recently received $148,000 in investment earnings. Credit to KATHERINE DUFFY BURKE
@GarrettDills You can find her by searching her full name online. She is well-known. She has appeared on Fox Business, Bloomberg and WSJ to discuss market and portfolio growth.
@@ThormanBoucher I looked her up, and she appears to be very competent, with a proven track record. I also discovered her website, where I left a message in the hope that she will respond soon. What a sight to behold!!
"and or increasing your income"
i know the intent was not to be flippant ... and yes , it is just a fact ... but ........
"it may be necessary for you to reduce your expenses to save money.
A few examples of common expenses that you can swap to save money are:
cable for one or two streaming services,
name brand for a store brand or generic items,
new clothes for thrift store or consignment shop,
coffee shop coffee for brewing coffee at home,
and of course, dining out for eating more food at home and taking your lunch to work.
Whatever the expense, there's usually
a less expensive alternative that can save you money."
----------------------------
right ... ok ... but ...... for the even harder cut because the reality of this capitalisthellscape
----------------------------
what is the less expensive alternative to:
streaming services
generic items
consignment shop
coffee at home (the coffee and the home)
food at home (the food and the home)
??
When you talk about recessions but don't even know the actual definition 😂😂
Bro yall are crazy with that woke ass recession definition. 😂
*It’s no longer a story that the world is experiencing a global economic downturn I’m so happy that I’ve been receiving $64,000 from my $15,000*
Investment every 8 days...
Sounds good!! I would really appreciate if you show me how to go about it?
@@erichenry6683 The smiles on my family’s face is heart warming, every week when I give the news that our $32,000 biweekly profit have been received to our digital assets portfolio..
God bless Mrs Olivia Renae Marks and her trading services
I thought am the only one that knew her but I guess not because her good and honest deeds speaks for her now. Such a genius when it comes to investments.
Please how can I reach out to Mrs Olivia ? I also want to benefit from her investment strategy.
@@beverlyj.newman2480 She’ll guide 👇👇
I think you are 3 months late on your video
Be brave, your heart will lead you the way, to a new version of yourself, full of love and light, finally you recognise the illusion of negative patterns of the mind and you are moving forward with great inner peace, much love to all of you 🙏✨❤️
Could you please speak a bit more slowly? ;-). Thanks.
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
A strategy to protect against inflation is through the U.S stock market, especially the S&P500 & various ETFs. Investors must know where to put their money and how to distribute it in order to protect it against inflation while still making a profit, especially during a recession.
The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
Her name is “Vivian Carol Gioia can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!