I would recommend putting in at least 1-3% into retirement. You can do that once your out of debt if you want. But just because you can’t put the whole 15% in doesn’t mean you should put zero in. 1% is better than nothing.
When you hit the brakes on your car, you say the car is slowing down. This doesn't mean your car is reversing. Same concept as inflation. When they say inflation is slowing down, it doesn't mean prices are getting cheaper. Prices are still getting more expensive, just not as fast.
Is the economy tough right now, yes. But come on, this is Friday and if I pass by Texas Roadhouse this evening there will be an hour plus wait. People spend foolishly and then complain they don't have enough to make ends meet.
This is why some financial articles talk about America does not have a earning problem. America have a spending problem. I hear grown adults saying things like I need to go on vacation. I need the new iPhone. I need a brand new car. My kids learn from their school needs versus wants. I think a lot of adults can benefit from going through that lesson one more time.
I finally got to the point where I was making good money (prior to covid) and then cost of living and housing went crazy... im debt free but stuff is crazy expensive...it sucks.
Everything they are saying here is TRUTH and DOABLE! 1) I have maxed out retirement since my teens (both IRA and 401k when I was eligible) 2) the last car I bought was 0.01% of my net worth - that's right, I am a millionaire driving a $2k car, and 3) I teach my kids to save, invest, then use the returns to buy what they want
Bottom line: most people don’t want to give up their lifestyle, stop all the expensive traveling sports for their kids or stock up on foods when they’re at their lowest sale price. Our society has become a bunch of whiners.
Never cut retirement savings. Cut other spending like going out to eat, the fancy phones, and streaming services. Kids don't need to be in five sports either.
I don't agree with pausing retirement. Especially when you're getting a significant match from your employer. That match is even higher than the interest rate on a credit card
I wish kids would understand the power of compound interest, everyone should at the very minimum get your employer match, max out your Roth then live off the rest.
Inflation is coming down?!?!? No, the rate of increase has slowed but it never reverses, so it’s a fallacy. And the biggest problem is that government isn’t stopping any of the $&#¥ which caused it in the first place.
Inflation by definition is a ratio term. Deflation is also a ratio term just for decrease in prices. If Inflation goes to 1% it doesn't mean prices drop it means on avg they will increase 1% yoy
Yes, that's the right term to use. When you hit the brakes on your car, you say the car is slowing down. This doesn't mean your car is reversing. When prices stop going up as quickly as before, we say inflation is slowing down. This doesn't mean things are getting cheaper (or else it's called deflation).
The fascination with vacations is strange to me. Sure, they're nice, but are people so unhappy with their everyday lives? And if they are, there's got to be a wiser use of their money for improving their situation.
@@danielfurr7356going on holidays sucks 😂lose your routine get jet lag always waiting in line either for a bus plane or taxi 😂 we have set up our life’s to enjoy everyday and now we don’t need to run away from our life’s
@@FancyRPGCanada I heard Dave say a once in a lifetime trip is OK IF you're in solid shape financially. He recently told a grandma it was OK to spend $50K on a trip for her family of 20 to go to Disney. She had saved $30K to pay for part of the trip and was planning to take the other $20K from her retirement. She had over $1M in retirement funds (plus probably other assets like a paid for home) and was 62 so she was healthy enough to enjoy the trip with her grand kids and not put herself at financial risk. Dave said go for it. I've never heard Dave say it's OK for someone with little to no retirement set aside or financing the expense with debt to take any kind of vacation.
The bigger question is have these people stopped going out eating, going to the movies, and living like the Jones's? People need to change their lifestyles, stop buying the newest phone or I watch. It seems people have enough to get their Starbucks plus so these studies are from people who can't balance a budget.
To be fair, things are so expensive because Americans keep purchasing mostly on credit. If most americans stop eating out and buying houses, then prices WILL drop. Supply and demand. But no greedy Americans live on consumerism
One of the things people don’t talk about enough when it comes to buying versus renting. With a traditional fix rate mortgage your principal interest stay the same. that’s one of most peoples biggest expense. so while cost-of-living has gone up, it’s not 20% for everyone.
Agreed but the s and p. Will typically outperform inflation. This is why taxed sheltered retirement accounts are even more important in times like this.
Food was inflating until 2020, but it appeared flat because food also has enough competition and fewer monopolies so they've also been figuring out ways to keep food cheap (more efficient agriculture techniques, streamlined supply chains, aggressive scaling). If we applied our modern techniques to the agriculture and grocery industry of the 1980s, food would've been even cheaper than it was then.
food is up 190% over 4 years... nobody has ever reported its rate of price increase being even close to reality. My groceries were $50 a week in 2020. Now the same grocery list is $145.
Great to see you Jade! George, last time I'm going to mention that I LOVE your hair when you have your previous hair style. Let your hair grow on the sides, PLEASE. I love you when you style your hair elegantly, and handsome, NOT like you're from a "hood" somewhere. George, be yourself, that's why we LOVE you. Great team Jade and George!
Things are better when debt and mortgage is paid off and all of a sudden you have $1k-$3k more disposable income each month. Better if your home is energy efficient. Better when you own a smaller home with less wasted space to heat and cool. Better when you have a large well stocked walk in pantry and deep freezer. Better when you have homestead exemption and senior freeze when 65. Better when you have passive income sources. Etc.,etc.,etc.,……
Inflation is by definition the RATE at which it is rising, not the actual rise. Which is going down. You just fundamentally misunderstand what inflation is.
Came here to say the same thing. Indefinite doesn't necessarily mean forever. It just means the end date isn't finite. Aka can't be determined at this time. Smh
I am Canadian, so our 401K equivalent is an RRSP, and we have Group plans for employers to setup, and we can take out RRSPs our own. But a quick Google shows there is a Solo 401K for you. And I imagine your business can setup a 401K plan with you as the employee, as we do something similar here with group plan RRSPs. Seems logical to me.
@Lonovavir that still doesn't mean inflation hasn't decreased... It's just inflation on gas was higher before the inflation decrease. You are confused about economics and conflating pricing to inflation.
People complain about costs but most people could cut back on something, they have too much car and eat out too much and take expensive vacations. Some people truly have cut to the bone, but most have not.
70%+ people are in significant consumer debt - so based on what you say, most people in the USA should not be investing- which is what the article says people are now doing.
Years ago, I did the math. Just making a 3% contribution to a 401k reduces your tax withholding enough that you are taking home the same pay as you would without making the 401k contribution. Then you add a company match, and that 3% becomes real money. Then you can always add later.
Investing is important but there is no way that money contributing 3% will save you an equal amount of income tax. That would put you in a 100% tax bracket, which luckily isn’t a thing yet.
I grew up poor in another country. After moving to USA I realized this was a huge asset. I have always lived a very frugal lifestyle. I did buy a new car but 13 years later I still gave it. I keep in the garage not outside and it's like new. No need for another one for years. I'm now about to retire early as a multimillionaire. My friends can't imagine how I did it. The best friends are those with big houses boats and airplanes. You won't need to buy or pay for them. 😊😊
I'm cutting back on retirement funding. Not pausing entirely, but we dropped from 16%(+match) down to 5%(+match) to cover a major home expense. Inflation sucks, but isn't a factor in the decision.
The problem with the “Baby steps millionaire” concept is that if you’re 65 with a paid off house worth 500k and retirement savings of 700k then you’re technically a millionaire, but in practice, you’re poor. With a high 10% annual withdrawal you’re living off of 70k a year. That’s a poor person’s life. They abuse the fact that “millionaire” used to mean something. Now millionaire doesn’t mean rich or even well-off.
To the detriment, more and more businesses are refusing to accept cash, which forces more and more credit card debt. Businesses should be required to accept cash.
I stopped paying into retirement in 2002 but I bought a house in Silicon Valley for 700k, with 250k equity and put 150k into it, it’s worth 2.8 million minimum right now, of course if I sell I got a 450k tax bill and wish I had kept house in Fremont, CA and bought a rental or 2 but my wife did not want that,
Just read an article yesterday...fed chairman does not want prices to go down at all. He just wants them to go up but not more than 2% prices going down is deflation and he says that is bad. These prices need to reduce a lot. What does fed chairman care...his net worth is over 200 million. He has to consider the average person
@@lepojthen something has to give. Either wages have to be higher than inflation without price increases, enough to cover the basics, roof over your head, car payment, food, electric, gas etc and save a little or prices need to drop. Otherwise our economic system will eventually collapse. You can't squeeze people their entire lives and expect them to endure it, it will eventually burst. High wage jobs and careers are far and few between and not enough to accommodate the entire population, skills take time to acquire and move up the chain yet the prices of everyday necessities reflect that of what high earners would be able to afford. I hate to say it and if you told me years ago that this would happen I would not believe you but what is occurring is why people lean towards socialism. Both sides of this argument have a point but never any solutions.
@@lepoj I know how it works but to say that it's just normal and for people to lose their retirements, homes and livelihoods like they did in 2008 and be on the verge of homelessness is not a cycle most will endure much longer.
@@andidede3653 wow a cherry picked event that was caused by outside forces 🤦. The causes of 2008 are nothing like what's going on right now. Get a clue.
I really wish they would replace Social Security with a government sponsored Roth-IRA. All the money they take from you could go there instead. The government would be indirectly investing it's own economy and it wouldn't have to fail at managing the SS trust, and it would give retirees WAY more income. And the politicians could probably even sleaze in some backdoor deals with fund managers, everybody wins!
I’m all for the Ramsey plan, I follow it almost to a T.. but it’s funny hearing George talk about how $300 per month investing for 25-30 years is life changing, but a week ago in one of these highlight videos George spoke to a caller about his $400 spread on his investment vs paying off his house is nothing and won’t be a life changing amount of money over the span of his life…. So hypocritical depending on the reason for the investment…
The more you listen to the Ramsey Team, the more you realize how often they play mental gymnastics to make things fit into their rigid plan instead of adjusting to reality. The Ramsey plan is a good plan for their target demographic, those eyeballs deep in debt & having the financial discipline of a five year old, but the more knowledgeable and more disciplined you get you can see its shortcomings.
Stop complaining about inflation if you still got multiple subscriptions, keep having kids, going on vacations,in debt and the Amazon driver knows you by your full name.
@@LonovavirThere’s no “might” about it. Everything is intentional. It’s meant to keep 90+% of Americans in servitude to the upper .01% muckity mucks forever.
They don't ignore it. Yeah. Buying a home kinda sucks right now. But complaining about it and believing you've already lost so why try doesn't solve the problem. Budget Budget Budget. Odds are your Buying something you don't actually need. Or over spending. I just went to a different grocery store today than i usually shop. There hamburger buns. Same brand I typically buy is around $3 more than my typical grocery store. So yeah. If your shopping there odds are your paying an insane amout for food. I looked around. There prices are ridiculous. Its in a fancy neighborhood. Those millionares are happy to pay $6 for hamburger buns. My point is sometimes just paying more attention to where your purchasing can lower costs. The government holding prime rates ultra low for 20 years absolutely spoiled us. Middle class is not a 3000 sqft house for 450k in the best neighborhood. It's not two 60k suvs in the garage. It's not tvs in every room with your own personal theater. It's not a 5k trip every year. It's not every kid has a 1k+ cell phone. 20 years ago.. all of those things classified you as rich. It's still rich. Holding rates low for 20 years made us all feel like we could do those things. Some of you are being introduced to what life was like before the crash. And yeah.. part of the problem is they don't build modest homes anymore. That are more suited for middle class earners. And when you Budget you should be paying your four walls first. The rest gets to go towards fun and nice to haves. People budget backwards. They pay the car payment. Then groceries. No.. you pay for groceries. The from what's left over tells you what car you can afford.
You need to save in non qualified accounts as well. Do your best to have NQ, trad and roth assets. Easier said than done, but living beyond your means will never get you there. But income has to increase with prices and no one ever says anything about relative cost now compared to 40 50 years ago. Income just doesnt go as far and buy as much as it used to.
Dumb question. We are fortunate enough where we are debt free including our home. We are in baby step 7 and make in $200,000ish range and we both max out our 401K contributions which equal to about $60,000 / year. We are not struggling financially and make wise money decisions. We’re both in our early to mid 50s with ~ 1 mil in investments. Thinking about possibly retiring in 6-7 years. Are our contributions too high based on %s? Gracias 🙏🏻
FYI, inflation is based on CPI. The items used in the CPI are weighted proportional to popularity. So if steak goes up 50%, and people stop buying steak and start buying chicken, which is now the same price as steak from the previous year, inflation will show as 0%. This is an exaggerated example to prove the point, but we have all seen prices of food go up ~100%, but inflation numbers don't reflect it because people are being forced into buying less expensive foods. The government is also claiming that wage growth has outpaced inflation, but in the real world we know that's not true. Who has seen a 30-40% wage increase over the last 3-4 years? Raise your hand.
The idea that seniors should be living or striving to live above or equal to the standard of living that they enjoyed while they were in the workforce, is a bit crazy.
Car payments, car payments, car payments 😂😂😂. One of the biggest reasons Americans will always hurt financially, especially low income and middle class families. $600-$700 car payments have become the norm.
This is going to be an unpopular statement, but sooooo many people have kids, and looking at it purely mathematically, they're just a black hole of money. Don't have them unless you're going to be able to afford them without wrecking your finances.
Wait a min: this is the group that says don’t contribute to retirement when you are paying down debt. I googled what percent of Americans have consumer debt and their own website comes up saying 77% of Americans do. So they should be happy people are following their advice.
So out of touch with reality. I'm a millionaire and I'm feeling the pain of inflation. I don't live paycheck to paycheck, but I can't save as much as I used to. I can't imagine what it's like for the average middle class household.
Agree completely. I earn a good salary and have a decent retirement fund balance. But, the high prices of EVERYTHING is absolutely hurting us. I have even adjusted my A/C to 79 degrees (and, it’s been an excessive heat wave for the past 3 weeks here) and 79 is not very comfortable- but making do. Hot water heater- lowest setting possible (barely warm enough to properly was dishes). Have to shop two different grocery stores to get best sale prices--never buy anything not at a great sale price. Don’t eat out anymore- an occasional night out use to be nice. Even cat food and cat litter has gone up. Can’t cut back there- but am making the litter last longer by scooping more frequently. Decided not to run our hot tub- to save on the electric bill. Electricity prices has gone up so much over the past 3.5 years. Cut lawn services- which means that company is making less money. So on and so on. The rising cost of everything over the past 3.5 years is very real. I feel sorry for my adult children who have children to support. And, for all couples with children who might earn an average income. If it’s hard on me right now- I know it’s much harder on them. Yesterday- I even foraged for some blackberries and was happy to cross that off of my grocery list. I was actually excited to save $3.99 by picking my own blackberries! This is sort of crazy!
Wife and I are more frugal. We still mange to save alot and we have 2 kids. We are 100% debt free...no mortgage so that helps. Biggest area inflation impacted I notice is really eating out and food.
Car insurance car insurance car insurance!! Home owners insurance home owners insurance home owners insurance!! We are getting the money $$$ squeezed out of our pockets. Food prices food prices food prices!! The cost of utilities in July and August,
Maybe this is a regional thing, or depends how old a car you're willing to drive. The most we've paid for a used car (in 2021) is $8,000, for a 2009 model, from a private seller. Negotiated down from $10,000.
Maybe your 401k is a joke and if it is that’s your employer’s fault. My 401k is pretax,aftertax,and Roth. Has 6% company match and addition 3% without a match. BrokerageLink account,target date, ETFs,Bonds,CDs,mutual funds,credit union savings,HYSA,money market,etc.. Also can contribute more than $45k/yr. Also early retired at 52 with 2.1 million retirement portfolio currently because of my 401k and 80% of it is Roth.
If your 401k is a joke, get a different employer. You can stash away up to $23.5k per year for retirement. Administrators offer a variety of plans to choose from. Mine offers an S&P500 EFT and a technology EFT in addition to the target date funds. Why are they a joke to you?
joe, if an employer contributes anything, you are earning free money (bonus). If not, then your 401k is like an IRA. If your counting solely on a pension, the money in a pension fund is only as strong as the employer who controls it. My pension at a defunct large airline was zero. IRAs and 401ks are totally in your name, social security number, and you are responsible to the IRS about your savings. Please explain to the earner-savers how 401ks are a joke.
THINGS ARE NOT GETTING BETTER! Just because inflation is lower doesn't mean anything. Prices inflated 20% over wages. Until wages get that 20% back, everything IS on fire! And based on the last fifty years, we're never getting that 20% back. Things are BAD and the most likely outcome is that they continue to get worse. But hey, at least your stocks are up like 30% this year, right? You have nothing to worry about, so of course you don't see a problem.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ann Marie strunk 😊🎉
My Roth IRA earned me $26 last year and even less the previous years. With taxes and the cost of living where it is, today, the money is better in a savings account.
You need to give more information. 2023 was a great year to invest, because there was little movement in the first three quarters. Then about Oct 30, everything bumped, sometimes by a lot. That means you were buying into stocks/funds at cheap prices and now should be seeing nice gains. What are you invested in? Are you following the Baby Steps? What kind of position are you in? Does it have a career path? Are you taking steps to make yourself better? Are there better-paying opportunities out there?
@@damondiehl5637 I have never bought into Stocks or Bonds. I did have a Roth IRA but as I said, it did perform well, over the 5 years that I paid into it.
Their response to a serious economic downturn would be hilarious if it wasn’t so wrong. People that are cutting back on their 401k investments are doing so out of necessity, not out of choice. Anyone who is in that situation isn’t in a position to make “millions” by means of a 3% 401k or Roth IRA contribution. Also, the decline of inflation rates is irrelevant when the damage has already been done. 3% on top of 15% just means the 3% will cause an even greater price increase. They have no solution here.
I would recommend putting in at least 1-3% into retirement. You can do that once your out of debt if you want. But just because you can’t put the whole 15% in doesn’t mean you should put zero in. 1% is better than nothing.
When you hit the brakes on your car, you say the car is slowing down. This doesn't mean your car is reversing.
Same concept as inflation. When they say inflation is slowing down, it doesn't mean prices are getting cheaper. Prices are still getting more expensive, just not as fast.
Precisely
Not according to Biden lol.
Great analogy 😂😂😂
🎯
@@hudsonmilbank Sorry his countless record stock markets aren't enough for you bro
Is the economy tough right now, yes. But come on, this is Friday and if I pass by Texas Roadhouse this evening there will be an hour plus wait. People spend foolishly and then complain they don't have enough to make ends meet.
This is why some financial articles talk about America does not have a earning problem. America have a spending problem. I hear grown adults saying things like I need to go on vacation. I need the new iPhone. I need a brand new car. My kids learn from their school needs versus wants. I think a lot of adults can benefit from going through that lesson one more time.
@@earthring @earthring a lot of ppl including myself, do have spending problems but that doesn’t change the fact that, everything is too high.
I finally got to the point where I was making good money (prior to covid) and then cost of living and housing went crazy... im debt free but stuff is crazy expensive...it sucks.
Everything they are saying here is TRUTH and DOABLE! 1) I have maxed out retirement since my teens (both IRA and 401k when I was eligible) 2) the last car I bought was 0.01% of my net worth - that's right, I am a millionaire driving a $2k car, and 3) I teach my kids to save, invest, then use the returns to buy what they want
Bottom line: most people don’t want to give up their lifestyle, stop all the expensive traveling sports for their kids or stock up on foods when they’re at their lowest sale price. Our society has become a bunch of whiners.
Contra to popular belief, our kids do not need travel soccer or a Disney vacation. Nothing wrong with us if you can afford it.
Exactly!
Bingo
Never cut retirement savings. Cut other spending like going out to eat, the fancy phones, and streaming services. Kids don't need to be in five sports either.
I don't agree with pausing retirement. Especially when you're getting a significant match from your employer. That match is even higher than the interest rate on a credit card
I wish kids would understand the power of compound interest, everyone should at the very minimum get your employer match, max out your Roth then live off the rest.
We start teaching them by 4th grade in our family.
Contributing to Roth at 14.
Inflation is coming down?!?!? No, the rate of increase has slowed but it never reverses, so it’s a fallacy. And the biggest problem is that government isn’t stopping any of the $&#¥ which caused it in the first place.
Yes...if you truly want prices to go down you need DEFLATION, not inflation.
@@travisbickle1455 it’s next and won’t be pretty because all federal and most state entities are criminal enterprises. Grab the 🍿
Inflation by definition is a ratio term. Deflation is also a ratio term just for decrease in prices.
If Inflation goes to 1% it doesn't mean prices drop it means on avg they will increase 1% yoy
Yes, that's the right term to use.
When you hit the brakes on your car, you say the car is slowing down. This doesn't mean your car is reversing. When prices stop going up as quickly as before, we say inflation is slowing down. This doesn't mean things are getting cheaper (or else it's called deflation).
Inflation is decreasing == prices are still increasing but more slowly than before
A bunch of them are pausing their retirement contributions to travel for their vacations
The fascination with vacations is strange to me. Sure, they're nice, but are people so unhappy with their everyday lives? And if they are, there's got to be a wiser use of their money for improving their situation.
@@danielfurr7356going on holidays sucks 😂lose your routine get jet lag always waiting in line either for a bus plane or taxi 😂 we have set up our life’s to enjoy everyday and now we don’t need to run away from our life’s
@@FancyRPGCanada I heard Dave say a once in a lifetime trip is OK IF you're in solid shape financially. He recently told a grandma it was OK to spend $50K on a trip for her family of 20 to go to Disney. She had saved $30K to pay for part of the trip and was planning to take the other $20K from her retirement. She had over $1M in retirement funds (plus probably other assets like a paid for home) and was 62 so she was healthy enough to enjoy the trip with her grand kids and not put herself at financial risk. Dave said go for it. I've never heard Dave say it's OK for someone with little to no retirement set aside or financing the expense with debt to take any kind of vacation.
The bigger question is have these people stopped going out eating, going to the movies, and living like the Jones's? People need to change their lifestyles, stop buying the newest phone or I watch. It seems people have enough to get their Starbucks plus so these studies are from people who can't balance a budget.
Agreed. And they get car loans and vacations, monthly subscriptions. What % of the crying is crying over loss of luxuries? My guess is most of it.
They rather ignore their past/current bad spending habits and just complain.
To be fair, things are so expensive because Americans keep purchasing mostly on credit. If most americans stop eating out and buying houses, then prices WILL drop. Supply and demand. But no greedy Americans live on consumerism
This is why companies shouldn’t give a match and just give them a % of there pay into retirement
Why should your company tell you what to do with your money? I’d prefer I get paid my salary and invest myself.
I saw the title and I immediately clicked because who wouldn’t want to lose millions of dollars??
Cost of living is still more than 20% higher than 4 years ago. Meanwhile wages have not made the gains to keep up. Its soul crushing.
Corporations gouging us .....taking advantage of us working fools to get richer and richer ...and THEY DONT CARE!
One of the things people don’t talk about enough when it comes to buying versus renting. With a traditional fix rate mortgage your principal interest stay the same. that’s one of most peoples biggest expense. so while cost-of-living has gone up, it’s not 20% for everyone.
Wages have been increasing though and have been outpacing the rate of inflation recently.
Perhaps your wages have not increased but average wages have increased and kept up with inflation recently.
I love these two. They are very concise. Always great advice
Their future selves are going to be so upset at them.
Inflation may come down but prices will never go down 🤦♀️
True...food for many years had been pretty flat. So best we can hope for is food prices stay relatively flat for many years.
Agreed but the s and p. Will typically outperform inflation. This is why taxed sheltered retirement accounts are even more important in times like this.
Prices are coming down.
Food was inflating until 2020, but it appeared flat because food also has enough competition and fewer monopolies so they've also been figuring out ways to keep food cheap (more efficient agriculture techniques, streamlined supply chains, aggressive scaling). If we applied our modern techniques to the agriculture and grocery industry of the 1980s, food would've been even cheaper than it was then.
@@user-tb7rn1il3qno prices are not coming down. Prices coming down would suggest deflation… that will never happen in the USA
food is up 190% over 4 years... nobody has ever reported its rate of price increase being even close to reality.
My groceries were $50 a week in 2020. Now the same grocery list is $145.
The price of food in my region since 2020 has increased vastly more than the numbers cited by the media.
Grow your own
Great to see you Jade! George, last time I'm going to mention that I LOVE your hair when you have your previous hair style. Let your hair grow on the sides, PLEASE. I love you when you style your hair elegantly, and handsome, NOT like you're from a "hood" somewhere. George, be yourself, that's why we LOVE you. Great team Jade and George!
Stop it, things are not better - everything is fuckin expensive and it’s not going to get better.
Things are better when debt and mortgage is paid off and all of a sudden you have $1k-$3k more disposable income each month.
Better if your home is energy efficient.
Better when you own a smaller home with less wasted space to heat and cool.
Better when you have a large well stocked walk in pantry and deep freezer.
Better when you have homestead exemption and senior freeze when 65.
Better when you have passive income sources.
Etc.,etc.,etc.,……
@@blackworldtraveler3711 having a hard time seeing the point u are trying to make?
@@Geletin911
Point is it’s up to you to get better.
I have low expenses and zero debt.
Spending the summer in Switzerland regardless.
@@blackworldtraveler3711 u gotta be a boomer and also a zionist
U.have to stop cry And sak why
Jade, inflation is not going down. Its just not rising as fast as it was.
Inflation is by definition the RATE at which it is rising, not the actual rise. Which is going down. You just fundamentally misunderstand what inflation is.
@@amireallythatgrumpy6508 That is all hearsay and semantics.
@@TonyLambshanks Only an American could possibly make a comment that dumb.
Everything is up except for wages
I don’t think either of them knows the definition of indefinite
Came here to say the same thing. Indefinite doesn't necessarily mean forever. It just means the end date isn't finite. Aka can't be determined at this time. Smh
How should independent contractors save for retirement without access to a 401k?
Roth IRA
I am Canadian, so our 401K equivalent is an RRSP, and we have Group plans for employers to setup, and we can take out RRSPs our own. But a quick Google shows there is a Solo 401K for you. And I imagine your business can setup a 401K plan with you as the employee, as we do something similar here with group plan RRSPs. Seems logical to me.
Start you own Traditional IRA or Roth based on your income. Another option is opening a brokerage account.
Roth IRA. SEP account.
You can start your own 401k or a couple kinds of IRAs.
CPI is a joke. Inflation is way more than 3% in the last year. Prices are not coming down, even if the inflation rate is
Jade said that as grocery bill went from 150-350 😂
Even if inflation comes down that doesn't mean prices come down. You are thinking of deflation.
Gas prices alone are up at least 75%. The CPI numbers are gaslighting.
@Lonovavir that still doesn't mean inflation hasn't decreased...
It's just inflation on gas was higher before the inflation decrease.
You are confused about economics and conflating pricing to inflation.
@@macruizphotography my last sentence makes that differentiation
Prices are not decreasing when the rate of inflation decreases. You need deflation to make prices go down.
Nobody claims, or even cares, whether prices are decreasing.
@@amireallythatgrumpy6508 Lots of ppl thinking exactly the opposite of what I said. Ppl care a lot about prices, clown.
@@beng3345 In America, literally nobody is thinking ANYTHING, clown. None of you are capable of thinking.
People complain about costs but most people could cut back on something, they have too much car and eat out too much and take expensive vacations. Some people truly have cut to the bone, but most have not.
I gaurantee I could look at 95% of these people and find huge leaks in their bucket. Mostly cars, shopping, and eating out.
95% of the people complain but don't want to look. It stares them in the face but they look right past it.
70%+ people are in significant consumer debt - so based on what you say, most people in the USA should not be investing- which is what the article says people are now doing.
Most people don’t pay themselves first , that’s how they got into debt in the first place.
Years ago, I did the math. Just making a 3% contribution to a 401k reduces your tax withholding enough that you are taking home the same pay as you would without making the 401k contribution. Then you add a company match, and that 3% becomes real money. Then you can always add later.
Investing is important but there is no way that money contributing 3% will save you an equal amount of income tax. That would put you in a 100% tax bracket, which luckily isn’t a thing yet.
I grew up poor in another country. After moving to USA I realized this was a huge asset. I have always lived a very frugal lifestyle. I did buy a new car but 13 years later I still gave it. I keep in the garage not outside and it's like new. No need for another one for years. I'm now about to retire early as a multimillionaire. My friends can't imagine how I did it. The best friends are those with big houses boats and airplanes. You won't need to buy or pay for them. 😊😊
Inflation without wage increases is nothing more than organized price gouging by big corporations.
I'm cutting back on retirement funding. Not pausing entirely, but we dropped from 16%(+match) down to 5%(+match) to cover a major home expense. Inflation sucks, but isn't a factor in the decision.
"we're going to come out of this" - not until wages go up and/or prices come down we're not
The problem with the “Baby steps millionaire” concept is that if you’re 65 with a paid off house worth 500k and retirement savings of 700k then you’re technically a millionaire, but in practice, you’re poor. With a high 10% annual withdrawal you’re living off of 70k a year. That’s a poor person’s life.
They abuse the fact that “millionaire” used to mean something. Now millionaire doesn’t mean rich or even well-off.
lol. i'm sure half these people have vehicle payments of 1000/month cause they gotta have that sweet pickup truck.
Inflation has not gone down, its rate of increase has. This shows lack of basic finance principles is astonishing sometimes.
we stopped eating out twice a week during Covid and never got back in the habit. I wish I had known this 30 years ago
Inflation might be coming down but prices are not, and will not ever go back down!
To the detriment, more and more businesses are refusing to accept cash, which forces more and more credit card debt. Businesses should be required to accept cash.
I stopped paying into retirement in 2002 but I bought a house in Silicon Valley for 700k, with 250k equity and put 150k into it, it’s worth 2.8 million minimum right now, of course if I sell I got a 450k tax bill and wish I had kept house in Fremont, CA and bought a rental or 2 but my wife did not want that,
Just read an article yesterday...fed chairman does not want prices to go down at all. He just wants them to go up but not more than 2% prices going down is deflation and he says that is bad. These prices need to reduce a lot. What does fed chairman care...his net worth is over 200 million. He has to consider the average person
Deflation *is* much worse than inflation 🤦
@@lepojthen something has to give. Either wages have to be higher than inflation without price increases, enough to cover the basics, roof over your head, car payment, food, electric, gas etc and save a little or prices need to drop. Otherwise our economic system will eventually collapse. You can't squeeze people their entire lives and expect them to endure it, it will eventually burst. High wage jobs and careers are far and few between and not enough to accommodate the entire population, skills take time to acquire and move up the chain yet the prices of everyday necessities reflect that of what high earners would be able to afford. I hate to say it and if you told me years ago that this would happen I would not believe you but what is occurring is why people lean towards socialism. Both sides of this argument have a point but never any solutions.
@@andidede3653 You may want to look more into how an economy works. This is a normal part of something that is called the "economic cycle".
@@lepoj I know how it works but to say that it's just normal and for people to lose their retirements, homes and livelihoods like they did in 2008 and be on the verge of homelessness is not a cycle most will endure much longer.
@@andidede3653 wow a cherry picked event that was caused by outside forces 🤦. The causes of 2008 are nothing like what's going on right now. Get a clue.
we live on 2500 a month and are home owners
People absolutely need to stop spending/charging! It's fueling inflation
As is the rate of increase of inflation slowing decreasing suddenly makes things cheaper!
Good points
401k employer matching is free money. Literally.
Simple finance mantra: Just invest in savings and investment instruments that beat inflation.
Indefinitely only means ‘until further notice’
People just keep hoping that changing the President will fix all their financial problems.
I gave up on all of that in the 80s.
Became apolitical and focused more on myself.
5:07 onwards 🙌🏽
Young people should never stop contributing into their 401ks.
And never withdrawal
Easier said than done.
Yep even in paying off debt atleast contribute up to any employee match.
That’s not true. To get out of debt it’s ok to temporarily stop contributing.
I agree. I tell every young person, even if it’s $25 a month, you start and never stop. You increase with every raise you get.
Step 1: take investing and mortgage advice from Ramsey
Do these two know what indefinitely means?
Dang, everyone has a new car payment avocado toast bills!
I really wish they would replace Social Security with a government sponsored Roth-IRA. All the money they take from you could go there instead. The government would be indirectly investing it's own economy and it wouldn't have to fail at managing the SS trust, and it would give retirees WAY more income. And the politicians could probably even sleaze in some backdoor deals with fund managers, everybody wins!
I work for the city government, we can’t pause our retirement.
I’ve always paid for my cars for cash I don’t understand why someone would buy new you loose money as soon as you drive out the lot ..😊
I’m all for the Ramsey plan, I follow it almost to a T.. but it’s funny hearing George talk about how $300 per month investing for 25-30 years is life changing, but a week ago in one of these highlight videos George spoke to a caller about his $400 spread on his investment vs paying off his house is nothing and won’t be a life changing amount of money over the span of his life…. So hypocritical depending on the reason for the investment…
The more you listen to the Ramsey Team, the more you realize how often they play mental gymnastics to make things fit into their rigid plan instead of adjusting to reality. The Ramsey plan is a good plan for their target demographic, those eyeballs deep in debt & having the financial discipline of a five year old, but the more knowledgeable and more disciplined you get you can see its shortcomings.
Stop complaining about inflation if you still got multiple subscriptions, keep having kids, going on vacations,in debt and the Amazon driver knows you by your full name.
How do you save when wages suck and everyday needs are 3x 😂
Yeah. They just ignores that.
They are just focusing on thinking that everyone just spends for no reason.
You don't, I fear this might be intentional.
I agree. It's hard just to stay afloat let alone get ahead.
@@LonovavirThere’s no “might” about it. Everything is intentional. It’s meant to keep 90+% of Americans in servitude to the upper .01% muckity mucks forever.
They don't ignore it. Yeah. Buying a home kinda sucks right now. But complaining about it and believing you've already lost so why try doesn't solve the problem.
Budget Budget Budget. Odds are your Buying something you don't actually need. Or over spending. I just went to a different grocery store today than i usually shop. There hamburger buns. Same brand I typically buy is around $3 more than my typical grocery store. So yeah. If your shopping there odds are your paying an insane amout for food. I looked around. There prices are ridiculous. Its in a fancy neighborhood. Those millionares are happy to pay $6 for hamburger buns. My point is sometimes just paying more attention to where your purchasing can lower costs.
The government holding prime rates ultra low for 20 years absolutely spoiled us. Middle class is not a 3000 sqft house for 450k in the best neighborhood. It's not two 60k suvs in the garage. It's not tvs in every room with your own personal theater. It's not a 5k trip every year. It's not every kid has a 1k+ cell phone. 20 years ago.. all of those things classified you as rich. It's still rich. Holding rates low for 20 years made us all feel like we could do those things. Some of you are being introduced to what life was like before the crash. And yeah.. part of the problem is they don't build modest homes anymore. That are more suited for middle class earners.
And when you Budget you should be paying your four walls first. The rest gets to go towards fun and nice to haves. People budget backwards. They pay the car payment. Then groceries. No.. you pay for groceries. The from what's left over tells you what car you can afford.
Inflation is not coming down.
So what you're saying is you don't understand what inflation is. Got it.
@@amireallythatgrumpy6508 I don’t think you do. A slightly lower rate of extremely high inflation is still extremely high inflation.
@@Imfromtheyear3452 That's the dumbest thing I've ever heard. Only an American would say something that dumb.
You need to save in non qualified accounts as well. Do your best to have NQ, trad and roth assets. Easier said than done, but living beyond your means will never get you there. But income has to increase with prices and no one ever says anything about relative cost now compared to 40 50 years ago. Income just doesnt go as far and buy as much as it used to.
Dumb question. We are fortunate enough where we are debt free including our home. We are in baby step 7 and make in $200,000ish range and we both max out our 401K contributions which equal to about $60,000 / year. We are not struggling financially and make wise money decisions. We’re both in our early to mid 50s with ~ 1 mil in investments. Thinking about possibly retiring in 6-7 years. Are our contributions too high based on %s? Gracias 🙏🏻
FYI, inflation is based on CPI. The items used in the CPI are weighted proportional to popularity. So if steak goes up 50%, and people stop buying steak and start buying chicken, which is now the same price as steak from the previous year, inflation will show as 0%. This is an exaggerated example to prove the point, but we have all seen prices of food go up ~100%, but inflation numbers don't reflect it because people are being forced into buying less expensive foods.
The government is also claiming that wage growth has outpaced inflation, but in the real world we know that's not true. Who has seen a 30-40% wage increase over the last 3-4 years? Raise your hand.
Thank you for this example- this really helped me understand CPI calculations.
🗣️Listen Up People...."If you don't want to Lose Millions of Dollars..... Don't Marry The Wrong Person! Period, thats it, 🤷♂️End of Story!
The idea that seniors should be living or striving to live above or equal to the standard of living that they enjoyed while they were in the workforce, is a bit crazy.
Inflation has slowed doen, it ha snot come down. The only way for it to come down is to see a negative percentage
False. Inflation is by definition the RATE at which prices are rising. Do you know what a rate is? Stay in school kids.
Saying inflation is coming down is bs literally every cost I have keeps going up
You people don't understand that inflation is the RATE of increase. You probably don't even know what a rate is.
Please don't listen to these people, don't pause retirement contributions
Car payments, car payments, car payments 😂😂😂. One of the biggest reasons Americans will always hurt financially, especially low income and middle class families. $600-$700 car payments have become the norm.
It’s the silent killer of most people retirement plans.
@blackworldtraveler3711 what makes you say that?
Don't buy new cars. Baby the cars you have. Try to drive fewer miles
🐺
Squeeze savings. Thank you sleepy Joe.
This is going to be an unpopular statement, but sooooo many people have kids, and looking at it purely mathematically, they're just a black hole of money. Don't have them unless you're going to be able to afford them without wrecking your finances.
These people just need to get one of those part-time jobs that pays $50,000 per year, which are abundant according to Ramsey, et al.
So you choosing to give up? Sounds like it.
Wait a min: this is the group that says don’t contribute to retirement when you are paying down debt. I googled what percent of Americans have consumer debt and their own website comes up saying 77% of Americans do. So they should be happy people are following their advice.
Most of those people are not paying down their debt. They have consumer debt and they are staying in debt.
Household income is higher than $67k.
It’s in the 70s
So out of touch with reality. I'm a millionaire and I'm feeling the pain of inflation. I don't live paycheck to paycheck, but I can't save as much as I used to. I can't imagine what it's like for the average middle class household.
Agree completely. I earn a good salary and have a decent retirement fund balance. But, the high prices of EVERYTHING is absolutely hurting us. I have even adjusted my A/C to 79 degrees (and, it’s been an excessive heat wave for the past 3 weeks here) and 79 is not very comfortable- but making do. Hot water heater- lowest setting possible (barely warm enough to properly was dishes). Have to shop two different grocery stores to get best sale prices--never buy anything not at a great sale price. Don’t eat out anymore- an occasional night out use to be nice. Even cat food and cat litter has gone up. Can’t cut back there- but am making the litter last longer by scooping more frequently. Decided not to run our hot tub- to save on the electric bill. Electricity prices has gone up so much over the past 3.5 years. Cut lawn services- which means that company is making less money. So on and so on. The rising cost of everything over the past 3.5 years is very real. I feel sorry for my adult children who have children to support. And, for all couples with children who might earn an average income. If it’s hard on me right now- I know it’s much harder on them. Yesterday- I even foraged for some blackberries and was happy to cross that off of my grocery list. I was actually excited to save $3.99 by picking my own blackberries! This is sort of crazy!
Wife and I are more frugal. We still mange to save alot and we have 2 kids. We are 100% debt free...no mortgage so that helps. Biggest area inflation impacted I notice is really eating out and food.
Fortunately the middle class hasn't existed for 100 years.
Car insurance car insurance car insurance!! Home owners insurance home owners insurance home owners insurance!! We are getting the money $$$ squeezed out of our pockets. Food prices food prices food prices!! The cost of utilities in July and August,
Do yall know a used Corolla or Honda or Volkswagen costs around $20K! Unless you know someone who can give you one.
No No No you just need to get you one of those $1000 beater cars and deliver Pizzas in that beater car. It's a formula that can't lose.
Maybe this is a regional thing, or depends how old a car you're willing to drive. The most we've paid for a used car (in 2021) is $8,000, for a 2009 model, from a private seller. Negotiated down from $10,000.
Never ever pick up another credit card!
I increase my 401k contribution every January by 1%. And I've been at my current job for 6 years
"Billions!" Vote for Biden.
I’m sure it’s because mortgages and rent are high as hell
401ks are a joke. When are these two gonna understand that?
It’s not a joke. You need to invest wisely and be consistent. And, never withdraw until eligible for retirement.
Maybe your 401k is a joke and if it is that’s your employer’s fault.
My 401k is pretax,aftertax,and Roth.
Has 6% company match and addition 3% without a match.
BrokerageLink account,target date, ETFs,Bonds,CDs,mutual funds,credit union savings,HYSA,money market,etc..
Also can contribute more than $45k/yr.
Also early retired at 52 with 2.1 million retirement portfolio currently because of my 401k and 80% of it is Roth.
If your 401k is a joke, get a different employer.
You can stash away up to $23.5k per year for retirement. Administrators offer a variety of plans to choose from. Mine offers an S&P500 EFT and a technology EFT in addition to the target date funds.
Why are they a joke to you?
joe, if an employer contributes anything, you are earning free money (bonus). If not, then your 401k is like an IRA. If your counting solely on a pension, the money in a pension fund is only as strong as the employer who controls it. My pension at a defunct large airline was zero. IRAs and 401ks are totally in your name, social security number, and you are responsible to the IRS about your savings. Please explain to the earner-savers how 401ks are a joke.
before you invest learn how to do your due diligence
Everyone knows the quickest way to become a millionaire is to become a billionaire and then go into the movie business.
Or get married
Lets hear how the Ramsey team is dealing with inflation?
THINGS ARE NOT GETTING BETTER! Just because inflation is lower doesn't mean anything. Prices inflated 20% over wages. Until wages get that 20% back, everything IS on fire! And based on the last fifty years, we're never getting that 20% back. Things are BAD and the most likely outcome is that they continue to get worse. But hey, at least your stocks are up like 30% this year, right? You have nothing to worry about, so of course you don't see a problem.
where is inflation is going down please show with facts
I do $6-700 a week into retirement and im 29, will i be a millionaire by the time im 55?
Net worth Millionaire, maybe, if that's your ultimate goal.
@@timfoote2874 fine by me, my house house is worth 700k now
Keep 'er rolling LI. Divide up your investment vehicles and follow the Ramsey Team recommended methods like a variety of mutual funds.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ann Marie strunk 😊🎉
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Maybe the are cutting back because the are in baby step 1,2,3
Always live in their in little world, and everyone makes a living wage.
My Roth IRA earned me $26 last year and even less the previous years. With taxes and the cost of living where it is, today, the money is better in a savings account.
Look at your statement from January 1 to to today. If you only earning $26, that means you don’t have enough money in there.
@@earthring there's nothing to put in.
You need to give more information. 2023 was a great year to invest, because there was little movement in the first three quarters. Then about Oct 30, everything bumped, sometimes by a lot. That means you were buying into stocks/funds at cheap prices and now should be seeing nice gains.
What are you invested in?
Are you following the Baby Steps?
What kind of position are you in? Does it have a career path? Are you taking steps to make yourself better? Are there better-paying opportunities out there?
@@damondiehl5637 I have never bought into Stocks or Bonds. I did have a Roth IRA but as I said, it did perform well, over the 5 years that I paid into it.
@@damondiehl5637 We don't have a mortgage and we are almost debt free.
Their response to a serious economic downturn would be hilarious if it wasn’t so wrong. People that are cutting back on their 401k investments are doing so out of necessity, not out of choice. Anyone who is in that situation isn’t in a position to make “millions” by means of a 3% 401k or Roth IRA contribution.
Also, the decline of inflation rates is irrelevant when the damage has already been done. 3% on top of 15% just means the 3% will cause an even greater price increase. They have no solution here.
she’s gorgeous wow
Jade looks so hot in those glasses 🥵 I'm digging it!
She seems confused. Inflammation is not coming down. It can come down, but it's not.
Inflammation? It would be YOU that is confused, sir.