Do THIS When You Get Paid (Paycheck Routine)
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- เผยแพร่เมื่อ 10 ม.ค. 2024
- Do you feel like your money disappears as soon as you get paid? In this video, I'll share my 3-step paycheck routine so you know exactly how to set up an automated money system & finally feel like you have money to spend.
Find my book here: iwt.com/book
Download Ch1 free: iwt.com/chapter1-youtube
Ramit Sethi is the host of Netflix's "How To Get Rich" and New York Times bestselling author of "I Will Teach You To Be Rich"
Find Ramit on Instagram: / ramit
When the paycheck comes be it as little $25 or as much as $1k just get started. You will never know how fast you will hit the milestone except you start. Invest too you will be happy you did pals
The only investments people talk about are HYSA and Roth, I feel the APY is quite low.
I just automate my pay to my HYSA which gets me 5.0% , Roth gets me 7.5 % and my main portfolio that gets me passive income basically serves as my second job. Diversifying is the way I get more it's better than just have it in my traditional bank that yields only about 0.01% which is useless
Traditional bank savings interest are just BS. I've couple saved up looking to have a proper investments. I've been doing research, do you have any leads ?
I've got a mentor I follow that gives me advice on finances, it's been going out pretty well. Her name is Rachel Blanc you can look out for her.
Please share I can have a look at it
My goal is to buy several of your books to donate to the library in my low-income neighborhood. This can be a game changer for people.
Very generous. Thank you
What a GREAT IDEA! It took me WEEKS waiting on the Library waiting list for Ramit's book! They told me there was only 2 books in the "system" and a HUGE waiting list!
Low income people dont read, they can read but dont. Sounds mean but its facts.
my goal is to sell you several books and articulacy inflated prices, , to help you reach your goal and feel more rewarded when you get their ,finally
You think ppl in low income neighborhoods read finance books?
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
Her name is Mary Kaliope Braun’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
I know you hate spreadsheets, but I love them. I have a budget for 6 major categories and check in weekly with my husband. I have 6 HYSA set up for different goals. I manually go in and do payments for CC and bills. We saved over $4k last month (50% of our income)🎉🎉
We do the same!!
I remember when I thought that saving 50% was the objective.. 😂 Now I realized that we never celebrated looking at our bank statement every month.. 🤷♂️
One thing I learned watching Ramit is that the focus shouldn't be on how great your saving rate is, but what % do you allocate to pursue your "rich life" as a couple....
I came upon Ramit when I was full on the "Fire/Frugality" movement. I got excited about cutting expenses, raising the saving rate 50% and more... never thinking about "what is my rich life". As a couple, hitting the 50% saving rate on a spreadsheet doesn't provide any kind of memorable moments. But when we started shifting my mindset towards "our rich life", it totally changed our relationship with money. We don't celebrate 🎉 🎉 our savings rate, now we focus on increasing the % we allocate to our CSP. This is where we live memorable experiences as a couple, vacations, going to a nice restaurant, a great stand up comedy show, spending a day at a spa resort.... this where the 🎉🎉 happens now... not the number on a spreadsheet.
Very cool. Which HYSAs do you recommend?
@@Roilan_Goldman Sachs Marcus is a great one
I’ve tried all the software and actually use some for years… I always go back to the good old spreadsheet.😆
Paying myself first was a real game changer, on pay day savings first, then bills, then spend the rest, managed to save 15k in just over a year. Not a lot but more than I have ever had sitting in my account. This is after working for 11 years lol. Yes automated saving is the way to go.
How’d you go about following bills? My situation is I make good good money, but my bills are also ridiculously expensive. I get paid and I immediately put some away into savings. Pay my mortgage, truck, insurance blah blah blah, then of course electric comes up at $500, then heating oil and much more. It’s random too since I’m basically just paying what I can at that moment. Which seems to be how a lot of my bills go. I don’t spend money. I live frugal, I make enough money it’s just like timing is so screwed that I physically can’t seem to get it all paid and under control to start saving. Of course money has never been an issue for me until I got divorced. Then every penny I had ever saved was no longer mine and I got stuck with all the bills. No problem. Sold the house, all the toys and trucks, then been trying to get set up since then and I’m sure it’s something that I’m doing wrong but I can’t seem to figure it out and get everything paid on time, as well as saving some. I eat very well considering I harvest my own meat and grow my own vegetables. But sheesh, I still don’t have a savings account again
@@brandonmontemayor8178have you listed out all your bills and asked what could be decreased or eliminated altogether?
Automate your investment as well. You will thank me later.
@@brandonmontemayor8178 Is there a way to lower the electric bill to start. Are you already using led bulbs, power strips to turn off at bed time. Then look at other utilities as well.
You have changed my life. I’m 39 going on 40 this year and I finally understand my finances! When my wife and I get paid biweekly we truly look forward to watching all our money automatically go to where it needs to go. We were living paycheque to paycheque and had no idea where our money was, and where it was going. Somehow we now have money and don’t feel like we have sacrificed anything. Just realized what we really wanted in our life.
I honestly hope to meet you one day to shake your hand and say thank you.
It's really sad this stuff is not required learning in the 12 years of education mandated by our governments. Thankful for the Internet for making information more accessible.
@@verb0ze so many people would struggle so much less if they understood these concepts
Saaammnmne
Careful to check what your bank does with their bill pay system. I had to switch banks because the bank I was with didn't deduct the check amount until the payee cashed the check. Sometimes the payee wouldn't cash the check for weeks and then SURPRISE!! Try to find a bank that will deduct the check the day you schedule it so the surprises wont happen.
One very helpful automation for me, since I get paid every two weeks, is to move half a month's rent into a rent-only savings account and I pay my rent from those funds. It's great knowing ahead of time that I won't have to worry about my checking account being too low to pay rent. Also, I've been able to save a buffer over the years with the occasional third paycheck in a month.
Same
I do the same thing for my rent. It gives me piece of mind.
Whattt this is a game changer. I will do this. Thanks!!
Automation was the biggest game changer I learned from your book! I have my paycheck split into 3 accounts on payday, 1 checking account for bills, 1 savings account for sinking funds and investing, and a 2nd checking account for spending money, that is also where I pay off my credit cards from. I don't have to do anything to make sure everything gets paid while I'm also saving and investing. Love the low effort of it all!
If your employer allows you to do allotments with your paycheck, you can have portions of your paycheck sent to other accounts automatically. I do this for my savings account and investment accounts. It works well and requires no action from me.
I am slowly, surely, and aggressively working on getting my financial life in order after 54 years of being totally self-employed and lost. Ramit, your book and these videos have been a huge part of making financial knowledge accessible and in fact inviting to someone like me. I can't thank you enough for your work!
It's my pleasure!
Congrats to you. I had some prick young(25) I’m 33 white boy passively aggressively attempt to “check” me by commenting 5k a year or $14 a day is not a lot as a 25 year old. (I didn’t want to play the race card, or mention generational curses some have to overcome)
Not everyone gets their finances together in their 20s, 30s, or 40s. Thank you for being open enough to share your experience.
@@truh_von_tay just subbed to your channel. Looking forward to following!
im starting at 43. two months in and already seeing a difference. im also obsessed with learning so its fairly easy for me lol.
@@truh_von_tay Thank you for sharing yours too! Those kind of shamining/dismissive comments can really undermine our attempts to get on top of this stuff. I'm glad you're sticking to it!
I live on Social Security first thing I do is put a set amount of money into savings ( 20%) pay all my bills the only thing I pay yearly is my real estate taxes the rest ( I get paid 3rd Wednesday ) I divide by however many weeks that check has to last that's my budget been doing this since May of 2020 works for me
I do this but I made sure to set up due dates for a few days after my payday so that there's a couple of days of buffer between the two in case something goes wrong with my direct deposit. So if you get paid on the 1st set up due dates for the 5th.
I used to work in customer service for a major credit card and there were so many people who didn't understand that you can actually pay your bill early. So if you get paid on the first and your credit card bill isn't due until the 17th, it's not a huge deal. Just pay your card on the 1st or 2nd of the month. There is no rule that says you have to wait until the exact due date to make your payments.
The last section is super helpful for those of us who contract! It is always so difficult to find budgeting tips for those not on fixed income so thank you for including this super helpful section! :)
I finally automated my investments, I’ve been doing it manually each pay period but after about the 97th video of yours I’ve watched telling us to automate our finances this video stuck and I made it so
I truly appreciate that someone lines out exactly HOW to do this! A lot of people are just saying do x, y, z, but not very often do we hear anyone break down exactly HOW to do these things!
Incredibly relieved to find out I'm already doing these things, but just not so structured. Appreciate the organization! Thank you!
Got this as a suggestion from TH-cam and didn't expect to get blown of my mind with this routine. I'll switch my money management system to this routine that seems easier and better than my current one. Thanks!
I like this! I do something similar actually, where my paycheck is actually divided by payroll and broken out directly into my Fixed Expenses Account, Emergency Savings Account, Guilt Free Spending Savings account (like saving for vacations and w/e), and general checking. It's worked for me thus far! Just always re-evaluating to be sure I actually have the fixed expenses properly accounted for 😅 next is setting up automatic payments for most of my cards, already have it for my utilities.
I automated almost everything after reading your book. Changed my life.
Shout out to your editor! Whoever it is, he/she/they deserves a raise! 😊👍
It is Xe/Xem/ Xyrs you biggot
I have learned so much in the past year reading your book and listing to your podcast at age 58 I finally got it all under control thanks to you. You made it all so easy to understand and now I'm investing aggressively. It's NEVER TO LATE Thank you
Great work!!
We just arrived here 🇺🇸 10 months ago, I thought we will be negative in our networth as we have a car loan. Our First loan ever!😅, we travel to other states, eat out like 2-3x a month and send money back home. Surprisingly, we stay positive and hit our 2 months worth of Emergency fund, have our joint account, match our 403B, start funding Roth IRA. Our annual income falls to the lower bracket and we don’t do extra shift coz we love day offs!
It is the saving and spending awareness that matters. We spend only what we can afford. We use credit cards and paid it off monthly. Having cashback rewards from CC is a plus.
Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,
Love this guy !! Simple & straightforward, no BS with his tips 🙌🏽💰💰
Thank you for making this video. Funny enough I do all of these things already. I try to share these ideas with friends and family but they usually don’t listen. Now I can just send them this link.
I just paid off my car loan last week and that created a ton of margin in my budget to put more to my last debt -my student loan. Also, I can save more and create a bigger buffer. I pay my credit cards every week. I’ve been doing it for many years and it has become second nature 😅 I do have automatic transfer through payroll at my job to send to my health savings account, which is nice because I don’t have to think about it. I’m definitely thinking about changing my due dates for my bills though
this video was just suggested to me by "the algorithm". Great advice. I've been using a system like this for a few years. In your first flowchart, I would also add an HSA in addition to the 401K funded with pretax salary funds. And have the HSA funded so your paycheck schedule funds the HSA limit by the end of the year. Same philosophy with funding the Roth IRA. I have my contributions deducted from my checking account weekly at 1/52 of the annual limit to take advantage of dollar cost averaging. Also as far as contributions, I would say first meet your company 401K match percentage (pretax dollars), then max your HSA contribution (pretax dollars) then max your Roth IRA contribution, and then go back to increasing your 401K contribution as your budget and other savings goals allow. Keep in mind that your Roth contributions can always be taken out penalty free, so is essentially an invested emergency fund.
Wife and I have a ton of student debt to pay back so we built up a healthy (to us) high yield savings account and have stopped adding to it. Every month we have an automated investment in a brokerage account into a low cost index fund. We also max our 401(k). We venmo our landlord for rent. Then we aggressively apply the avalanche method to our student debt currently but we are considering buying a house so we may shift some of that to saving for a larger down payment.
The phone call bit and "that's how you do it" was hilarious but it does work! Thanks for the tips Ramit
Never read your book, but I use the system you teach. Always pay yourself first, savings, investments etc.
@ramit words can not describe what kind of a wonderful person you are. Thank you for your time.
I am SO thankful I discovered Ramit’s book late last year! I love his strategy.
You’re incredible !!! Thank you so much for this, it’s THE video that we all needed
I set my system up a while back but after a few unexpected life changes, I need to go back a reset a few things. The good thing about this system though, is even if its a little out of whach, I've still been able to save, invest and pay for essentials each month without fail. Once I refocus, I should be able to invest even more.
Yes! Great comment. It's fine to recalibrate your system every so often. That's totally normal. Thanks for watching
I really like the idea of setting up a buffer and will probably go down that road. I kept watching your videos about automating money, but has been skeptical about it, because some of our bills are irregular in amount and timing. For example, most of our utilities are based on a 30-day month, rather then set date. Also, something like electric bill could vary between $90 and $150 depending on usage, weather, etc. Since me and my spouse have a joint checking account, that may be a perfect place to setup a buffer to ensure everything gets paid on time and my wife is aware of what payments are being made.
Exactly what I have done for years. It feels good.....and no worry in case something comes up out of the blue.
A lot of times you can send you paycheck to more than one direct deposit location. I do this with my regular savings along with retirement. Helps me skip the step of it hitting my checking account which, for me at least, help me budget and automate even more. Just A thought. Love the automated budget life.
The 3 steps were very informative. I'm actually already doing almost exactly the 3 steps unconscious. Learning from other types of budgeting methods being combined and adjusting which suited be best 😊😊
Your videos are such a blessing, so glad they came up in our algorithm!!! Thank you! -josh&kari
Thanks Ramit for another great video. I bought your book and it motivated me and my husband to start investing. We live in the UK. So the investments have different names but i opened an isa and found a global index fund and we have started with that. We are late starter's in our 50's but we are not going to use that as an excuse. No one in our families has ever held investments so they can't help. So we have started with vanguard. I feel at least we will have a bit more for when we do retire and that will help. So thanks for pointing us in the right direction.
yeah that's a good path, focus on a good strategy, relax back and watch it compound within the years. In good time you'll see returns.
Loving these practical videos❤
Finally the video i was looking for, from step one.💯
Love these videos better than when you do the videos with the couples. Keep it coming
Ramit thank you. More videos more often pls....
Great video!… Thanks!
I have watched several of your videos this weekend. I’m going to buy your book!
I read your book, but I didn’t realize it was you when I clicked on this video. Really great advice thank you!
Thank you for this video! I love the tips and advice and I love your humor!
Hi, Mr. Ramit I'm in Costa Rica just want to say Thank You for an awesome channel.
I love this guy! I watched his Netflix series. He makes things so easy! I’ve got to apply this method starting next month.
I am currently reading your book and I've found this video...why are I SO ANXIOUS to automatically auto pay my bills??!!?? I usually spend Thursday Mornings going over my bills and paying what needs to be paid, I am going to try and let go of the control and use your Automated system!! 😬
Thank you so much for your all financial advice I love it!!! 🇨🇦😍
Thank you kindly Mr.Sethi!
Thank you for sharing this video . I’m new to this channel and have learned tons from just watching 1 show a day.
What I like about this channel.
is that clearly whatever you think about attracts more of the same. I daily review my richer life accomplishments...attracting more!
Love that colour cashmere sweater on you
Love this! Thank you!
Really good video - easy to follow too - forwarding to my family.
That sweater looks really comfy
Omg! I finally watch you on Netflix!❤. I need help!😢.. seriously at53..fail in restuarant business. Went back to work ,four year later we now started another business with everything we got!.
No retirement savings 😢
Been doing this for years!!! Ive learned have different accounts with names, groceries, gas ect. And it tracks my spends easy. I prefer it than one bank account only.
Same different accounts for the win. I don't like mixing all the funds together.
Ramit--- This is God sent... I've been looking for something that works for me.. Listened to budgeting gurus and financial tips and tricks, but just wasn't helping. The idea in mind was what works for me--- single mom -- that needs to overhaul her finances, teach my kids to save now, create an AI system to do it for me.. I love the perspective you have am so grateful your video popped up in my thread... Where can I get advice to create a strategy to get me out of credit card debt---options using my equity from my house or the snowball/avalanche system?
I like your voiceovers, you sound like me when I'm explaining things🤣🤣🤣 you've got a sub here.
Thank you implemented right on time for payday thank you I have your book 📕
This is an amazing n simple system🙏🏿💯
Need to do this today!
This almost sexy to listen to 😂. The budgeting for dummies video we didn't know we needed 💪
Wow one of the best videos I seen in a while.cutb& dry
I’m doing this! Automate savings account. This gives me stress-free monthly budgeting. The day after the payday, funds were already transferred to its allocated savings account. What’s left on my checking are just for the bills payment. What ever is left in the checking after all bills will be paid will be moved to the buffer fund.
I have adopted a hybrid of You + Dave Ramsey financial philosophy, lol. It's a great fit for me :)
Thanks you so much for this great inf.👍
I actually do this now and it’s working really well for us!
Watching in Netflix has opened my eyes!
This is really good info.
i had to take a picture of the chart you had for my 22 year old with adhd. apparently i dont know what im doing as a almost debt free mom working 10-15 hours overtime every pay.
Wow, this was so helpful. Especially that last section about adjusting this for those of us with an irregular income. Is it possible to make a video about how to make bigger plans for yourself and your family(marriage, education, building a home etc.) if you have a inconsistent income sources?
I'd recommend my book and Money Coaching program: iwt.com/moneycoaching
Okay, this paycheck routine is like a game-changer for real. No more 'oops, I spent too much' moments.
I got your book today. 😊
The changing the bill dates 🤯
Ramit, keep up the outstanding work man. I love your channel.
Thank you
Thank you for your video
Thank you so much.
New subscriber 💯💯
I love these smaller videos
Great content I love it! Could you do a video for artists? We don’t have a regular monthly pay check so how would you do in this particular case? Thanks in advance :)
self-employed here, I typically do all my transfers manually after the money has cleared the accounts. Will work on the savings buffer to automate investing.
Edit. my base income is disability $1,500 that money is set up already on pre-authorized payments for rent and electricity, then what is deposited into my account. has it's own job.
More power to you, being self employed is very challenging but very fulfilling and there is where you can see your true potential. It’s scary at the beginning but super simple once you get a workflow. For people reading this just getting into the entrepreneur lifestyle from a 9 to 5. Just used the schedule and apply it to your line of work. Also do not start a business with a loan, choose a net 30 instead.
Smart paycheck routine! Taking actionable steps right when you get paid is key to financial success. Practical advice for better money management. #FinancialWellness
I need one of your books
Reasonable guidelines :)
Yes sir!! Keep the knowledge going.
This is gooooood!
If your job has allotments, you can have your money divided that way. Allotments are separate from net to bank. My job has three slots. One I set for my expenses account, roth ira, and savings. My expenses account is set up to have all bills automated. My net to bank is variable spending like gas and groceries or out to eat etc. However, do what works for you. This is just something I do since reading his book. Good luck
thank you
A little off topic, but where are these sweaters from? They look fantastic.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Claudia Jenkins.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $1400 and after a week, we received $5230. That really helped us a lot to pay up our bills.
Jenkins' expertise in customizing investment portfolios based on changing market conditions and personal risk profiles is exceptional. It's not a one-size-fits-all approach, which is crucial in crypto investing.
You trade with Claudia Jenkins too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
One thing I’ve always wondered since reading Ramit’s first book: Because we are paying our bills with the credit card, wouldn’t the credit card’s due date be the only billing date we need to adjust?
I indeed pay most of my bills via my credit union cc that gives 1.5% back on *every* charge (so I ultimately get a 1.5% discount on those bills), but some places charge fees if paid via cc, so those I auto-pay via checking.
Billing is typically more complicated than this. There's the close date and the due date, which can be anywhere from 2 weeks to 6 weeks apart. Best to just not live paycheck to paycheck so you don't have to worry about this at all.
Its not that hard. U set up autopay accordingly to match your pay schedule. You can pay bills before they’re due…. You just pick a day for the autopay. And some bills let you choose the due date anyway when u set up acct.
Billing is only complicated if you allow it to be. Also what does this method have to do with living paycheck to paycheck. I do something very similar but have my funds go in their designated accounts with direct deposit including investing & I have over a year of regular living expenses saved up. How does that equate to living paycheck to paycheck? I also invest almost 50% of my income. So I'm sure I don't fall in the category of living paycheck to paycheck; however, people need strategies in order to be successful.
Also 6 weeks on a credit card is such a stretch. They're generally about 10 days.
I’m talking to a ton of people who make so much money but only allocate a percentage of it. One person said their take home was 60% of what it actually was and doesn’t account for where the other 40% goes. It would be great if they could specifically say where that money in their budget goes
Fantastic 🎉