@@BossofBosses111 I would actually extend it to a two year emergency fund. Recessions on average last 12-18 months. So having an emergency fund that can be tapped without dipping into the market investments at low points will extend the lifetime of your retirement savings.
@@latheef1987 if you actually mean assets,I am unsure,that would depend on the rental income you receive in a year on your assets,is it 4% of your assets value?If it is then yes if it is not ajust accordingly.Leave a bit of buffer still through as while rental prices should be quite stable,it can still vary a bit.
Rachel khoo i meant that 4% rule consider as we should have savings to live 25 years ie. 4% per year if your yearly expence 20000 the savings and investments value would be 500000 so my question is this 500k includes the value of out assets like rental property real estate etc.. ?
I'll be 35 next year. Watching all these videos that start in the early 20s is tiring and only partially helpful. Time is the most important factor, so it really matters when you no longer have it
@@kageisuke true, but don't let it be the be all end all. At 35 you might just have to make even bigger changes to achieve the same. Which can be fun if you're open to change
35 seems to be a good age to do an alternative series for. Still enough time to grow income and save, but significantly less compounding time then the 20s scenario,
Once I started my full-time job after graduation, I immediately maxed out my 401k ($731/paycheck in 2019 and $750/paycheck in 2020) and have never looked back. I still take home enough to max out my Roth IRA and do additional investing, but never seeing that money from the beginning has been HUGE in working toward FIRE as a recent college grad. Great video! I look forward to more content from this channel!
Baudelio Magallanes $57k plus any nontaxable travel compensation/reimbursement like per diem and mileage. I cash-flowed my way through college, so I know how to make money go far. No kids.
Work while you go to school! I never really had the chance to invest as a college student since most of my money went towards tuition, but I am damn happy I worked my Junior and Senior years with internships. Working in accounting while eligible for overtime is INSANE. I could get $50/hr in overtime for 10-20 hours a week which I made sure to do despite having full time classes. Best part is they asked me to come back for their second busy season while I finish school. Oh yeah, and I two full-time offers lined up despite graduating during a pandemic. I will have probably made close to 60-70k over my before I start my first full-time job. And that may not sound like much over 5-6 years, but when I combine that with 25k in private scholarships (not including merit or government based) I competed for, plus one year I commuted to save money, that's 100k in student loans I avoided. Thanks to that, I can buy a 20k car cash and be debt free either by graduation or just a few months after starting work.
The power of compounding! Easy and sweet... The younger you are when you start to invest, the more circles of doubling your money will have! Great video and great content!
The power of compounding! Hard and bitter... The younger you are when collecting debt, the more circles of losing your money will have! Great video and great content!
Yup, informative, inspirational and delusional for any normal person who wants to own a home, wedding, pay for college/grad school, has a medical emergency, house repairs, car loans etc
Thanks for the awesome FIRE video. Those three are so important. I’m working hard on all three. I’ve been working 60-70 hours per week to support number 1 and am careful with my money for number 2. For number 3, I spend a lot of my free time planning and learning more about investing.
I was $197,615 in debt living paycheck to paycheck when I truly started using "tax cuts for the rich" within a year I had wiped out all but 60k ish. Today i $452,912.84 in my stock portfolio.
I have heard many who like to emphasize Financial Freedom over the craze of Financial Independence (Retire Early) perhaps out of stigma from what retirement means to them. I don't neccessarily look to quit working or being socially active but having the freedom to do something or not but having the independence or freedom to do so without fear of how I could maintain my lifestyle while doing so is significant of a life's mission that I hope to continue beyond the 'FI number' as it is a feeling of principle for what living the best possible life could mean. I love to give generously to a world I believe in and be a means of shaping it to my fullest capability while learning the many ways of doing so.
I think you missed a couple of things: 1. Discussing the difference between your baseline burn rate (the money you *have* to spend) versus your standard burn rate (the money you are OK with spending per month). The first is what you could get to with a reduced budget if a bad thing (i.e., job loss) were to happen while the second is what you have actually budgeted on average per month. After all, you did discuss a level of FI that was, I think, subsistence, in early videos. 2. You don't discuss how a person figures out what they are going to do in retirement once they hit their goal (and how that changes their expected costs). 3. You don't talk about burnout due to excess work, which may be the biggest advantage to the *online* side hustle. To summarize: being as cheap (not frugal!) as possible while working yourself to death is not going to get you to where you want to be, no matter how much you save.
Just started watching this channel a few weeks ago. Started investing in February due to a strange idea that I had for retirement. I'm looking to retire after I average 8-12k per month in only dividends. The idea is to live on about 25% of said dividends while using the rest for the taxes and reinvestment to increase dividends with dividend growth stock. Eventually to be passed on to kids.
It’s great to talk about the cost of going to college racing your income but, most people have to take out loans to pay for it. Student loans can bury you and take away any benefits that you would see in the first 10 years.
I Really enjoy your videos! I really like how detailed and bare bones it was regarding costs of living and burn rates regarding spending. Would it be possible to do a video running numbers for and detailing those not making 6 figures but more like $40,000/ year salaries for our Teachers, Nurses, Social Workers, etc? Thanks
For people in the average joe level of income - say 40k / year ... the numbers don't add up because nearly half that guy's income is going to go toward government.
Perry Love how does that work? California has the highest state income tax rate in the country and with a $40k salary there, you’d have an effective income tax rate of around 18% including both state and federal taxes. Where do you live that you’re getting close to 50%? Assuming outside the US? Including other costs outside income tax, maybe property tax and sales taxes? Not saying you’re wrong, I’m just genuinely curious.
@nextlevellife would it be possible, to make a video/scenario for a basic minimum wage(ish) worker, for example, I make $11 an hour at Walmart which is more relatable to many people (I assume) would that be possible?
Possible? Yes. However, statistically speaking that is pretty low on the income scale and I don't think that video covering how to achieve financial independence at that level would necessarily be the most helpful to people in that situation. It would have to involve some extreme levels of budgeting. Perhaps something like what's discussed in the book/blog "Early Retirement Extreme" by Jacob Lund Fisker. You may find his ideas intriguing given your question. Here's a link to his blog: earlyretirementextreme.com/. To be fair, many of those budgeting topics (rent/house hacking, buying used or utilizing things like Facebook's local buy nothing groups, getting and staying debt-free, lowering your burn rate, etc.) are already covered on the channel, but I think that finding ways to bump that income up to a more average(ish) level would be more helpful in this particular situation. Even if it takes a few years to do it (whether through the building up of a side hustle, going to school, eventually changing jobs, or just through increased experience and promotions). Statistically speaking the median (middle of the road) household income in the United States according to the Bureau of Labor Statistics is around $78,000 per year (though there's often more than one income earner in a household. Per earner, the median is closer to $60,000 annually according to their report). This is why $60,000 is often used as the income in my videos as it should be [reasonably] close and relatable to a fairly large number of households. At $11/hr you're looking at around $23,000 annually. Sure, you could get and keep an extremely tight budget and eventually achieve FIRE on that income, but it would likely be much faster (not to mention more enjoyable) to achieve it on an income in the $35,000-$40,000 range (or more if manageable). Just as a hypothetical. Say you found a way to live on $18,000 a year (a pretty tight budget, but manageable for someone implementing most [if not all] of the budgeting hacks discussed) and invested the rest. Your savings rate would be about 22%. Assuming your investments earned an average of 8% per year and you followed the 4% rule you'd be able to FIRE in roughly 27-28 years. If you managed to bump your income up to $40,000 while keeping expenses constant that timeline would shrink to around 12 years. Even if your expenses rose (say to $24,000 a year) that timeline would still come out to about 18 years. There are two sides to the financial independence equation and both are incredibly important. However, unless the person's spending is out of control, for those earning minimum wage (or thereabouts) I think that focusing on that side of the equation will be the most impactful. I hope you understand! Thanks for the comment :)
@@NextLevelLife I do understand and thank you for the time for answering my question, especially in such detail, I try to stick to budgeting as much as I can, but it's hard to go to school to learn with such a great amount of debt I'd have to take on, personally I'm trying to get into real estate and become a landlord to reach a continuous financial independence, again thank you so much for taking the time to answer my question 😊
@@darknightmare7216 out of all the things mentioned in that video creating the side hustle is the best option. Not only would it create a much higher pay but it would also allow you to make a portion of your current expense tax-deductible.
I strongly agree with the OT comment tho, i work a lot every week, grabbing coworkers shifts(deliver pizza(22)) and through investing and tucking away money have gathered a little over 106K
I know you've mentioned it, at least tangentially, but searching through your videos on retirement calculations I can't find anything on modifying standard plans for when you have a pension. Like the 4% rule, for example, if you have an inflation adjusted $2000/mo pension.
When the author mentions "house hacking" as a way for young people to reduce their monthly burn rate, is this a nice way of saying they are renting a room at someone's house? I did this in my until my late 20's, and it worked out great. Why is he calling it "house hacking", instead of coming out and saying to rent a room at someone's house?
Mainly because it can take a variety of forms. One of those forms is renting a room in someone else's place. Another is splitting rent of a house/apartment between several roommates (like many did in college). Still another is renting a duplex/triplex and living in one unit yourself while renting out the others. And so on. So House Hacking is just meant to be a sort of umbrella term encompassing the various ways that people attempt to lower their effective housing costs. I hope this answers your question :)
My personal takeaways: The real question about financial independence is how can you do it? Thankfully the keys to finding success are the same.. When you have a big income shovel it can go a long way to help in creating financial independence. When you are saving and investing..
You need to make a more realistic benchmark, 1,000 a month is not easy i live at home im able to do this but i lot of people do not have this much extra income
Great tips on how to work towards becoming financial independence! I really like your advice on becoming financially intelligent and planning ahead! Being smart with your money is so important and another channel I follow also makes sure to emphasize that; the channel is Canna Campbell's SugarMamma TV. She shares tips on how to spend wisely, build savings, and eliminate debt; I believe you would like her channel as well! Thanks again for the tips and I'm looking forward to future uploads!
Here's what worked for us: 1. Make frugality a way of life. Pay off all consumer debts as soon as possible. Buy new cars in cash. Do not finance anything! 2. Choose a house in a modest neighborhood below your means; use a 15-year house mortgage and pay off as soon as possible. We did it less than 5 years and this freed up a lot of cash for investments. Most important and impactful decision of our lives. 3. Max out 401k and Roth IRAs yearly. 4. Invest in taxable mutual funds: small company growth, international, and index funds. Buy and hold; never sell anything in a recession at a low value. 5. Invest early in college 529 plan. We had no problem paying for a private university for one child. 6. Have cash or bonds available for buying equity on a recession dip. 7. Defer SS payments until age 70. Result: Financial independence in retirement!
This guys math is off on everything if u invest 37 a year you’ll have 370 k after 10 years and that’s without interest. With interest you’ll have over 700k
Buy a duplex. Live in one unit and rent out the other. The rent collected from the other unit is enough to pay the mortgage and expenses. So you essentially live with no housing cost. You could also buy a 4 bedroom and rent out the other 3 rooms but then there is also shared living space to consider.
13:47 dear John here needs to start making $120,000 a year from his job from the age 3 if he wanted to reach financial independence by the time he's 30.
Uhhh, this is neglecting the real life situations of student loan debt, down payments for homes, medical emergencies, wedding costs.... these hypothetical people apparently don't need to live in the real world. Real life ain't like Bob & Jane FFS
I disagree, and think that's a very limiting mindset. Too many people think you need to run a business or make over $100k a year or it's not worth trying. Your "burn rate" is much more important.
So basically: To attain financial independence, earn as much as you can, spend as little as you can and save as much as you can
invest as much as you can instead of just saving. so your money makes money instead of losing value due to inflation
@Mohib Quadri Try the channels Minority Mindset and Investing with Rose, especially Rose's video on books about investing.
Not save - invest. Earn as much as possible, invest as much as possible (which entails spending as little as possible) and start as soon as possible.
Thank you for giving me back 10 min
@@OgZongo I meant to write invest 🤣think my brain was tired when I commented earlier
Checklist to retire:
No debt
Paid off home
At least 1 paid off car
6 month emergency fund
Enough to maintain the 4 % rule.
For retirement I would say at least a year for an emergency fund. That would be enough to combat most prolonged market down turns
@@BossofBosses111 I would actually extend it to a two year emergency fund. Recessions on average last 12-18 months. So having an emergency fund that can be tapped without dipping into the market investments at low points will extend the lifetime of your retirement savings.
is 4% includes the assets value we owned?
@@latheef1987 if you actually mean assets,I am unsure,that would depend on the rental income you receive in a year on your assets,is it 4% of your assets value?If it is then yes if it is not ajust accordingly.Leave a bit of buffer still through as while rental prices should be quite stable,it can still vary a bit.
Rachel khoo i meant that 4% rule consider as we should have savings to live 25 years ie. 4% per year
if your yearly expence 20000 the savings and investments value would be 500000
so my question is this 500k includes the value of out assets like rental property real estate etc.. ?
Consider making a video for people over 35 that still wants to achieve financial independence
I'll be 35 next year. Watching all these videos that start in the early 20s is tiring and only partially helpful. Time is the most important factor, so it really matters when you no longer have it
@@kageisuke true, but don't let it be the be all end all. At 35 you might just have to make even bigger changes to achieve the same. Which can be fun if you're open to change
I agree. I do get tired of the 20 somethings early saving. I'm 33 and I just started
35 seems to be a good age to do an alternative series for. Still enough time to grow income and save, but significantly less compounding time then the 20s scenario,
35? Too late, yolo, blow it all on hookers and booze. Enjoy!
Once I started my full-time job after graduation, I immediately maxed out my 401k ($731/paycheck in 2019 and $750/paycheck in 2020) and have never looked back. I still take home enough to max out my Roth IRA and do additional investing, but never seeing that money from the beginning has been HUGE in working toward FIRE as a recent college grad.
Great video! I look forward to more content from this channel!
Sileena, that's great to hear! Sounds like your well on your way to financial independence. Keep up the great work :)
not to pry but would it be right to assume you are making 6 figures or close to it
How much do you make ?
TheMrjacobjones Not even close, my base is $57k and I receive nontaxable travel compensation when I travel (per diem and mileage). But that’s it.
Baudelio Magallanes $57k plus any nontaxable travel compensation/reimbursement like per diem and mileage. I cash-flowed my way through college, so I know how to make money go far. No kids.
Work while you go to school! I never really had the chance to invest as a college student since most of my money went towards tuition, but I am damn happy I worked my Junior and Senior years with internships. Working in accounting while eligible for overtime is INSANE. I could get $50/hr in overtime for 10-20 hours a week which I made sure to do despite having full time classes. Best part is they asked me to come back for their second busy season while I finish school. Oh yeah, and I two full-time offers lined up despite graduating during a pandemic.
I will have probably made close to 60-70k over my before I start my first full-time job. And that may not sound like much over 5-6 years, but when I combine that with 25k in private scholarships (not including merit or government based) I competed for, plus one year I commuted to save money, that's 100k in student loans I avoided. Thanks to that, I can buy a 20k car cash and be debt free either by graduation or just a few months after starting work.
The power of compounding! Easy and sweet... The younger you are when you start to invest, the more circles of doubling your money will have! Great video and great content!
Thanks!
The power of compounding! Hard and bitter... The younger you are when collecting debt, the more circles of losing your money will have! Great video and great content!
@@ogbm4338 That so true to! I just upload a video about that topic... you are welcome to watch it...
Mister Frugal - Ofir Cohen Sure thing and I like your content, keep posting videos!
@@ogbm4338 yep,ita definitely a double-edged sword and sadly,most people are on the wrong side on the sword.
Very informative and very inspirational. Love how detailed your tips are and how achievable they seem! Been a big inspiration for me!
Thanks! I'm so glad to hear that they have been inspirational for you :)
Yup, informative, inspirational and delusional for any normal person who wants to own a home, wedding, pay for college/grad school, has a medical emergency, house repairs, car loans etc
Thanks for the awesome FIRE video. Those three are so important. I’m working hard on all three. I’ve been working 60-70 hours per week to support number 1 and am careful with my money for number 2. For number 3, I spend a lot of my free time planning and learning more about investing.
Sounds like you're well on your way to FIRE. Keep up the great work :) You've got this!
@@NextLevelLife thank you so much! I am doing my best!
Great video! Thanks for all the valuable information!
Glad it was helpful!
$2000 a month of fun money? As someone who nets $1600 a month that’s a pipe dream.
unfortunate reality is the RE part of FIRE can't be acheived by everyone. FI is still a good goal for normal retirement though.
I was $197,615 in debt living paycheck to paycheck when I truly started using "tax cuts for the rich" within a year I had wiped out all but 60k ish. Today i $452,912.84
in my stock portfolio.
I thought I was splurging with $300 a month for fun money
I only get $600 a month to live on saving money is not really a possibility living on ramen noodles and grown inside strawberries
@@Trumpetdude213 earning twice national average in UK and no kids I spend about the same as you on fun! Lol
I have heard many who like to emphasize Financial Freedom over the craze of Financial Independence (Retire Early) perhaps out of stigma from what retirement means to them. I don't neccessarily look to quit working or being socially active but having the freedom to do something or not but having the independence or freedom to do so without fear of how I could maintain my lifestyle while doing so is significant of a life's mission that I hope to continue beyond the 'FI number' as it is a feeling of principle for what living the best possible life could mean. I love to give generously to a world I believe in and be a means of shaping it to my fullest capability while learning the many ways of doing so.
Proper budgeting and planning will get you there. Plan for the long term.
Absolutely!
This info is gold,am totally sold.
I think you missed a couple of things:
1. Discussing the difference between your baseline burn rate (the money you *have* to spend) versus your standard burn rate (the money you are OK with spending per month). The first is what you could get to with a reduced budget if a bad thing (i.e., job loss) were to happen while the second is what you have actually budgeted on average per month. After all, you did discuss a level of FI that was, I think, subsistence, in early videos.
2. You don't discuss how a person figures out what they are going to do in retirement once they hit their goal (and how that changes their expected costs).
3. You don't talk about burnout due to excess work, which may be the biggest advantage to the *online* side hustle.
To summarize: being as cheap (not frugal!) as possible while working yourself to death is not going to get you to where you want to be, no matter how much you save.
Just started watching this channel a few weeks ago. Started investing in February due to a strange idea that I had for retirement. I'm looking to retire after I average 8-12k per month in only dividends. The idea is to live on about 25% of said dividends while using the rest for the taxes and reinvestment to increase dividends with dividend growth stock. Eventually to be passed on to kids.
It’s great to talk about the cost of going to college racing your income but, most people have to take out loans to pay for it. Student loans can bury you and take away any benefits that you would see in the first 10 years.
Income taxes will extend the time to attain the goals of all these examples by at least double.
I Really enjoy your videos! I really like how detailed and bare bones it was regarding costs of living and burn rates regarding spending. Would it be possible to do a video running numbers for and detailing those not making 6 figures but more like $40,000/ year salaries for our Teachers, Nurses, Social Workers, etc? Thanks
Your stuff is so good. Always packed with so much info. I always have to watch them multiple times.
Glad you like them!
Awesome video! I love the simplicity that you brought to a topic that can be overwhelming to many. We strive to do the same on our channel.
For people in the average joe level of income - say 40k / year ... the numbers don't add up because nearly half that guy's income is going to go toward government.
Perry Love how does that work? California has the highest state income tax rate in the country and with a $40k salary there, you’d have an effective income tax rate of around 18% including both state and federal taxes. Where do you live that you’re getting close to 50%? Assuming outside the US? Including other costs outside income tax, maybe property tax and sales taxes? Not saying you’re wrong, I’m just genuinely curious.
Average Salary in the US is 56K
@@MrSampsonne Don't forget to include property taxes, sales tax on purchases.
@nextlevellife would it be possible, to make a video/scenario for a basic minimum wage(ish) worker, for example, I make $11 an hour at Walmart which is more relatable to many people (I assume) would that be possible?
Possible? Yes. However, statistically speaking that is pretty low on the income scale and I don't think that video covering how to achieve financial independence at that level would necessarily be the most helpful to people in that situation. It would have to involve some extreme levels of budgeting. Perhaps something like what's discussed in the book/blog "Early Retirement Extreme" by Jacob Lund Fisker. You may find his ideas intriguing given your question. Here's a link to his blog: earlyretirementextreme.com/.
To be fair, many of those budgeting topics (rent/house hacking, buying used or utilizing things like Facebook's local buy nothing groups, getting and staying debt-free, lowering your burn rate, etc.) are already covered on the channel, but I think that finding ways to bump that income up to a more average(ish) level would be more helpful in this particular situation. Even if it takes a few years to do it (whether through the building up of a side hustle, going to school, eventually changing jobs, or just through increased experience and promotions).
Statistically speaking the median (middle of the road) household income in the United States according to the Bureau of Labor Statistics is around $78,000 per year (though there's often more than one income earner in a household. Per earner, the median is closer to $60,000 annually according to their report). This is why $60,000 is often used as the income in my videos as it should be [reasonably] close and relatable to a fairly large number of households.
At $11/hr you're looking at around $23,000 annually. Sure, you could get and keep an extremely tight budget and eventually achieve FIRE on that income, but it would likely be much faster (not to mention more enjoyable) to achieve it on an income in the $35,000-$40,000 range (or more if manageable).
Just as a hypothetical. Say you found a way to live on $18,000 a year (a pretty tight budget, but manageable for someone implementing most [if not all] of the budgeting hacks discussed) and invested the rest. Your savings rate would be about 22%. Assuming your investments earned an average of 8% per year and you followed the 4% rule you'd be able to FIRE in roughly 27-28 years.
If you managed to bump your income up to $40,000 while keeping expenses constant that timeline would shrink to around 12 years. Even if your expenses rose (say to $24,000 a year) that timeline would still come out to about 18 years.
There are two sides to the financial independence equation and both are incredibly important. However, unless the person's spending is out of control, for those earning minimum wage (or thereabouts) I think that focusing on that side of the equation will be the most impactful. I hope you understand! Thanks for the comment :)
@@NextLevelLife I do understand and thank you for the time for answering my question, especially in such detail, I try to stick to budgeting as much as I can, but it's hard to go to school to learn with such a great amount of debt I'd have to take on, personally I'm trying to get into real estate and become a landlord to reach a continuous financial independence, again thank you so much for taking the time to answer my question 😊
@@darknightmare7216 out of all the things mentioned in that video creating the side hustle is the best option. Not only would it create a much higher pay but it would also allow you to make a portion of your current expense tax-deductible.
I strongly agree with the OT comment tho, i work a lot every week, grabbing coworkers shifts(deliver pizza(22)) and through investing and tucking away money have gathered a little over 106K
That's awesome, Tanner!
I know you've mentioned it, at least tangentially, but searching through your videos on retirement calculations I can't find anything on modifying standard plans for when you have a pension. Like the 4% rule, for example, if you have an inflation adjusted $2000/mo pension.
When the author mentions "house hacking" as a way for young people to reduce their monthly burn rate, is this a nice way of saying they are renting a room at someone's house? I did this in my until my late 20's, and it worked out great. Why is he calling it "house hacking", instead of coming out and saying to rent a room at someone's house?
Mainly because it can take a variety of forms. One of those forms is renting a room in someone else's place. Another is splitting rent of a house/apartment between several roommates (like many did in college). Still another is renting a duplex/triplex and living in one unit yourself while renting out the others. And so on.
So House Hacking is just meant to be a sort of umbrella term encompassing the various ways that people attempt to lower their effective housing costs. I hope this answers your question :)
For uk citizens these sums are ludicrous average wage about £26,000 a year
My personal takeaways:
The real question about financial independence is how can you do it?
Thankfully the keys to finding success are the same..
When you have a big income shovel it can go a long way to help in creating financial independence.
When you are saving and investing..
Some good points
Basically what he's saying is work consume and die
Insightful and entertaining
I was determine today not to miss another video.
You need to make a more realistic benchmark, 1,000 a month is not easy i live at home im able to do this but i lot of people do not have this much extra income
great Video
Thanks!
The real key to financial independence is to spend less than you earn.
Simple math is often all it takes.
At 15:00 he said nothing costs less than 0. Not true oil futures did a few weeks ago lol.
haha, touche!
Go glad Anthony Fantano makes finance videos now.
Don't forget The trades! Never thought I'd be making near 200k a year with a highschool diploma!
Put away 1k a month at 23? Living at home maybe.
Can you teach us this pretending the economy is really bad and most of the US is unemployed? Just as a fun scenario
The 3 u need for fire is 1. Ignition source 2. Fuel 3. Oxygen. Happy Firefighting! 3 keys for $ 1. Discipline 2. Commitment 3. income Happy Investing!
Great tips on how to work towards becoming financial independence! I really like your advice on becoming financially intelligent and planning ahead! Being smart with your money is so important and another channel I follow also makes sure to emphasize that; the channel is Canna Campbell's SugarMamma TV. She shares tips on how to spend wisely, build savings, and eliminate debt; I believe you would like her channel as well! Thanks again for the tips and I'm looking forward to future uploads!
Where is tax calculation 🧮
That 8% interest though? Where can I find that lol
Buy some AT&T with a 7.2 percent dividend alone plus business growth should get close
average return of s&p 500 over the last 20 years i guess so a low cost index tracker.
Vanguard S&P 500 etf it will vary year to year but over time the average out. This is a long term investment 20+ years.
Here's what worked for us:
1. Make frugality a way of life. Pay off all consumer debts as soon as possible. Buy new cars in cash. Do not finance anything!
2. Choose a house in a modest neighborhood below your means; use a 15-year house mortgage and pay off as soon as possible. We did it less than 5 years and this freed up a lot of cash for investments. Most important and impactful decision of our lives.
3. Max out 401k and Roth IRAs yearly.
4. Invest in taxable mutual funds: small company growth, international, and index funds. Buy and hold; never sell anything in a recession at a low value.
5. Invest early in college 529 plan. We had no problem paying for a private university for one child.
6. Have cash or bonds available for buying equity on a recession dip.
7. Defer SS payments until age 70.
Result: Financial independence in retirement!
A great plan!
Thank you for sharing this valuable information!
Do not defer SS till 70. Collect at 62 and invest it.
Explain #6 please?
This guys math is off on everything if u invest 37 a year you’ll have 370 k after 10 years and that’s without interest. With interest you’ll have over 700k
👊👊
To keep it as simple as possible: "Take Care Of You Pennies And The Dollars Will Take Care Of Themselves"
A good quote!
You keep mentioning 'house hacking'. Please make a video which explains this.
Buy a duplex. Live in one unit and rent out the other. The rent collected from the other unit is enough to pay the mortgage and expenses. So you essentially live with no housing cost. You could also buy a 4 bedroom and rent out the other 3 rooms but then there is also shared living space to consider.
8% return on a 1000 dollar is no where to be found
13:47 dear John here needs to start making $120,000 a year from his job from the age 3 if he wanted to reach financial independence by the time he's 30.
JOB = Just Over Broke.
I swear, all these videos just find new ways to say the same old thing over and over again.
Uhhh, this is neglecting the real life situations of student loan debt, down payments for homes, medical emergencies, wedding costs.... these hypothetical people apparently don't need to live in the real world. Real life ain't like Bob & Jane FFS
Unless the video maker is financially independent I don’t believe him
If you train your mind as a worker you will never reach financial independence! Change examples or Keys on your video.
I disagree, and think that's a very limiting mindset. Too many people think you need to run a business or make over $100k a year or it's not worth trying. Your "burn rate" is much more important.
"Get a higher paying job" ...
😂😂😂
8% return on a 1000 dollar is no where to be found