Your 25k vs 25 mill video makes me want to call for a revolution! I spoke with my landlord and they told me they price rent as though 2 people or more will live in an apartment. It is absolutely disgusting. Massachusetts, NY, CT, NJ and the Northeast is becoming unlivable. We need 25 an hour not 18 an hour we need major increases in our incomes! If not we need a revolution!
I make about 50k a year in Berlin, Germany, which is about 2750 euro a month after tax working as a sales manager. - 650 euros for renting 1,5 rooms flat with electricity and internet - 100 euros for car insurance and gas - 29 euros public transportation (Car in the city is not useful) - 400 euros for good quality food - 150 euros for eating outside - 150 euros for phone, gym and other subscriptions = about 1200 euros left. I can travel, buy cloth, and safe some money and even invest in ETFs. University and healthcare are included (free). Just wanted to give you a perspective from Europe.
We and my wife make $70k combined here in the US. We can save roughly $2k a MONTH by paying attention to our money. Not all Americans are the ‘averages’ he’s talking about in the video.
@@good-tn9sr I'm assuming you're not from Germany and not familiar with our (somewhat unintuitive) way of counting rooms: 1,5 rooms doesn't include bath and a kitchen, those aren't counted, which means it's most likely a bedroom and either a smaller room or a dining area in the kitchen. And knowing Berlin it's probably the latter. Given that they're paying 650€ and an average price of 17€/m² I'd say they're probably living in a ~40m² (430sqft) flat. It's not too spacious but enough for a living alone university student.
The added touch of Johnny's money deducting being the same sound used in Yu-Gi-Oh when the players are losing life points reallly hits home. Thumbs up to the sound engineer/editor.
The one thing Johnny forgot to include in this amazing video is STUDENT LOANS. 43 million Americans owe on average $32,000 in debt, and that is also a major expense they have to pay monthly. Some of his assumptions for the middle class earners means they naturally will have to go into debt to afford their lives.
@@johnnyharris Right now the video is perfect mirror of Austria. But if you add the debt in the USA - it means Americans are poorer than us here!? This blew my mind!
Things about this video that I loved: - You did not assume all of your viewers are from the USA - No super annoying music that is louder than your voice - I hear you like you're talking to me personally - The actual real data - Realistic scenarios - Simply put and well explained (video editing is great too) Things about this video that I did not love: - Now I feel obligated to watch your videos because they're such good quality and not giving me a sense of stress, anxiety, or missing out
barista was meant to be a job you do while you work toward something better. Your not supposed to live your entire live supporting a family with a job as a barista
You already know you're a great storyteller. But Johnny youve outdone yourself. This is exactly what people wanted to know and have contextualized and you did it perfectly
@@johnnyharrisThis seems to be for one-person family with no student loan and no dependent child or parent. Also, one need to spend at least 20$ a day for a bare minimum with skipping meals. How you count it as 10$/day for the first two cases?
You don't need to find the next NVDA to succeed in investing. Just choose top-notch ETFs and partner with a financial advisor like I did. I turned $100k into $53,000 in annual dividends-a significant milestone for me today.
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Judith Lynn Staufer for years and highly recommend her. Look her up to see if she meets your criteria.
I found her profile online and reviewed her credentials. She has a lot of relevant experience. Thanks for sharing her information! I've already sent her an email to get in touch.
The costs to repair and maintain that Toyota are not tremendous but as the saying goes, "a thousands dollars isn't a lot of money until you owe it." George is one unexpected repair away from being unable to get to work, losing his job, and being unable to make rent. Something a couple of the examples have in common is that they rely on used cars. Public transportation is often marketed as being better for the environment but it is an economic good too. Unexpected repairs can totally derail the lives of hardworking Americans and cost the public money. Public transportation provides a measure of stability which is good for the overall economy.
Exactly this ^ car dependency's externalities don't just stop at the environment, but reach deep into our personal wallets in the form of both higher taxes and personal vehicle expenses
Cities should rethink public transit. How about autonomous driverless minibuses car pooled and ordered by low income folks from their phones which uses AI algorithm to move people around. City buses are so inefficient. Cities should also provide subsidies for E-bike rentals for people like George. Also how about a big bus, equipped with health facilities and with nurses and some doctors going around low income areas of the city to provide free health and dental health care to folks earning below $40k/year.
You just touched on why extended warranty’s are such big business in the US. They part on people who don’t have the savings for a major repair so they pay monthly for a rip-off warranty for peace of mind. Kind of a poverty tax of sorts.
It’s crazy that I was JUST talking to my grandma about this exact topic a few days ago. She kept saying, “I survived off of $75 back in the day.” I broke everything down as if someone just got out of school and made $15/hr, proving they could not afford an apartment where I live.. it’s sad how terrible this country has gotten in the last 20 years. This video really made me appreciate what I have, I don’t have much.. but it would be ignorant for me to say I have nothing compared to $25K a year. Thank you Johnny for making a masterpiece in-regards to explaining how hard it is for MOST Americans to live.
@@ryanlima2267 while that’s definitely true, it was prior to Johnny releasing a video explaining the same topic we discussed. So Johnny must be listening too.
I live in Romania and work in IT. Started with no experience, I now have 3 years, and while I never got promoted, they made an 'Elite team' in our project, with special assignments, and I got chosen for it pretty quick, which came with a salary increase. Currently I earn 9490 lei, but after taxes and medical insurance I am left with about 5480 lei + some meal tickets (coming on a card) in value of 360 lei / month. That is 2088 USD, from which I am left with 1206 USD and 80 USD on the meal card (money I can generally only spend in grocery shops). I am lucky to be providing support in English and German, and the German language brings me 3000 lei out of the total of 9490 lei. People who don't speak a second language (at work we consider English as a first and a must, so in reality a third language) are not as lucky, especially the ones not being part of our elite team. Most colleagues pay rent or mortgage. I still live with my parents, since my other siblings moved out. We do have 3 bedrooms in total, or a total of 5, if needed, during the summers. My parents' pension combined is less than what I make, so I try to also help out with different monthly expenses. I don't go out much, but I still somehow manage to spend quite more than I can imagine. Especially because of unexpected events - like car breaking down, US cousins coming to visit or traveling though Europe and needing me with them, wedding invitations, computer or different devices replacement or (rarely) upgrades, sometimes a game I like, etc. I keep saying I will be trying to save more, but I rarely manage to do it. I hardly imagine how people with lower incomes can make it. Life in Romania isn't cheap, but it's cheaper than in US. US average price for Diesel is now 3.788 USD (I assume per gallon, which is 3.78541178 liters). In Romania we pay 1.66 USD / liter, which is 6.283 / gallon, which is 1.66 times more than you pay, even though we have lower incomes. A trip of about 1800km (1118 miles) costed me last month 270 USD, if I remember correctly. You would've made the same trip with 163 USD. Other than that, services are usually cheaper, prices of some foods and drinks are the same, but restaurants are generally cheaper, considering that one pays partly for the service, not just the food. Sorry for the long story, I just wanted to let you know everyone feels your problems. My mon's pension when she stopped working (16 to 59, she stopped early) is 308 USD (after taxes). After a few more years she might get up to almost 400 USD. My father has just a bit over that.
@@NightNurseMike It's also easier to make another 100 dollars while making another 100 million doesn't happen with labor alone. (labor being something everyone has while the ability to make another 100 million isn't something most people have)
@ProudAmericanAmericanrobots won’t ta Robots won’t take over labor low wage jobs. Like building houses, roads, walls, buildings. They will take over office jobs that tend to be higher costing 100k pre person pay kinda jobs before it will take away anything from the low wage labors.
I make about $30K a year after tax, working 50 hours a week. Or $2500 a month, My expenses: - Housing = 0 (I live with my parents) - Transport = 0 (Public transport + returns on transportation) - Healthcare = 0 (I still qualify for free Healthcare) - Tuition = $350 (For an accelerated double major bachelor's in a University) - Food = $150 (I live with my parents + ordering here and there) - Electricity and Internet = $0 (I live with my parents) Leftover for vacations, quality of life upgrades or savings: $2000 a month. Conclusion: live with your parents.
@CHILLknowsfootball Around $1400 Per semester (Assuming 2 long semester and a shorter summer one) divided for every month. That's a pretty typical amount to pay in public universities for every country outside America. Private universities aren't much further either...
@@ranx9078 you're right but the difference is the poorest would not be able to pay any tax without the help because they'd be homeless, out of work or dead.
Not unheard of price on the high cost of living coastal cities in the US. Sweetgreen is like 16 already, and poke bowl places are like 19. It would have to be a fancier place but yeah
@@seriousbeesDon't Americans have local markets of local farmers? I can buy there enough saldo, vegetables and fruits for about 20-30 euros for the whole week...
@@houseplant1016 Farmers markets exist but they are expensive. 20 to 30 euros could buy enough for a few salads but depending on your veggie consumption you may need more
Everyone is expected to have one foot in smart investments like the stock market as passive income to compliment the daily 9-5 grind. Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies.
Invest in S&P 500 ETF, for as long as possible. Do it as often as you can. Try not to withdraw this money and let compounding do its work. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
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.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I love how he said “frugal” and not “cheap”. My parents used to own a high-end luggage and handbag store and used to tell stories of how some super rich ppl went out of their way to save as much as a few dollars on a handbag. You wouldn’t believe it.
@@JaiHylRubis I don't think you can become a multi-millionaire just by being frugal. Maaaybe you can make a very dated argument about eventually being able to afford a house or something, but not true wealth. There may be a correlation, but definitely no causation on this axis.
@@JaiHylRubis You're not wrong but being frugal is just 1 aspect of many many more that makes you able to be so obscenely rich, and for many those aspects aren't at all as positive or aspiring as being frugal. The "issue" is systemic, many people who are frugal don't become rich because the incentive structures put in place are so monstrous that those people hold on to their humanity instead of selling it for money. This is especially the case with people who work to keep their family, friends, loved ones and what they believe in above surface in this difficult climate.
@@JaiHylRubisnaah its kinda dumb. Beeing smart is not buying that BMW if you are the person earning 100k. Saving a few bucks when you make millions is insignificant.
@@hansklok3564 truth LOL! A whole video about once you reach a disposable income bracket you can just drop all of that extra money in the stock market and allow it to make money 24/7 as long as you have a good fund manager... But please tell me again about how saving a few dollars puts you on the road to become a millionaire. Step one to fixing society's financial issues education... Although millennials, gen Z, and alpha are all starting to figure out that the game is rigged. Too bad it took millennials so long to catch on with the program.
I went from making around 35k to 85k in the last 4 years through raises and promotions at my current workplace from a machine operator to a management position. Even THAT feels like a COMPLETELY different reality.
Congratulations to you both! I hope more people at the lower income bands work hard and intentionally to go up the ladder and change their lives instead of waiting for others to fix it for them. Well done!
The trick there is to not spend much more than you were. Obviously decent food and health care that extend your life expectancy and health expectancy are worth paying out for, but so many people double their income and immediately double their expenditure in things like housing and a nicer car when they could have been saving and investing that income. You'll see both reactions in the people around you and you'll see which gives people a better future.
Changed by saving 40k more per year and getting out of the "no money" trap in 3-5 years or spending a lot more each month and staying in the same trap (albeit at a higher level) indefinitely?
It's true, I wouldn't spend the money that way. But many do, and aside from that one, I think he told a pretty common and understandable story for each income bracket.
yeah, I thought his 50k and 100k examples were living beyond their means. Maaaaybe if you lived about 20 years on 100k, you'd have the savings to let loose a little bit like that, otherwise you are just pushing your own self down a few notches for no good reason.
I make about $30k /year and bought a $30k van that I now live out of. That’s the new American dream, bundling both my transportation and housing in one. The unexpected cost is that most parking places cost around $600-800/mo so I’m not really saving any money, unless I want to move everyday, which is expensive on gas and exhausting mentally. But I do own my own home!
The spending in the middle class categories seemed pretty lavish to me as well, but not unrealistic. I know many people that make much more than I do, but live more poorly than me, because of their spending habits. Fifteen years ago, I was making about $40k and I felt like I was rich (granted the housing and car markets were very different at the time but other expenses were comparable). I spent money like I was poor, so I was constantly putting money in the bank and never worried about when my next paycheck would arrive... Live below your means and play the game if you want to climb up to a higher bracket. The system isn't made for you to advance, but it's possible if you do it smart and put in the effort.
@@Den3productions Heya, just wanted to chime in here. You might want to try networking with people in the area and see if someone might have a driveway or piece of land you could rent for a few hundred instead. Can also put up ads on Craigslist and such.
The relationship one has with risk is also totally different. You can have an idea, start up a business, hire a team of people highly talented people to help you build it while you steer the ship, and if it fails, it literally doesn't affect you. At all. (Though that team of highly talented people gets cut loose to figure their lives out.) If it succeeds, you can feel secure in the knowledge that you "worked hard and earned your success". A very different experience from the bottom 99%, who might have amazing ideas, but no time, capital, or risk capacity to do a damn thing about it.
Also the implicit cost of paying people like a security guard just barely enough to survive, making them more susceptible to bribes. A society with increasing income inequality makes bribes easier and cheaper for the rich people to do and more necessary for desperate poor people to accept, like a negative feedback loop, leading to more bribes and more unequal society.
@@EggTamago7 Kind of how kids of really rich people have infinite chances to start businesses because they are being bankrolled by their parents money + their connections and if one of those businesses succeeds the media now claims this kid is "self made". Its so ridiculously aggravating.
The fact that health insurance costs this much in the US and then the companies get to move the goalposts and deny all kinds of claims is ridiculous...
@@internetceo At least it's mandatory, employer pays half of it and nobody is scared to get picked up by an ambulance because he would need to declare bankruptcy later... :)
Even with family support. Most likely their family is one accident away from homelessness too :( Tbh, it’s actually a positive for society. It’s really messed up that the 1% gets all the gold, but they are also statistically the most depressed , have kids that overdose , are married multiple times and have lousy relationships, have no real sense of purpose, and die lonely. Meanwhile, the “poor” family has a strong bond, good relationships, give their last dime to help each other, and die surrounded by family and friends :)
Can confirm. Somehow dug myself out of homelessness after AI took my career for a minute there (artist and designer). It was a terrifying moment in my life to go from $80k a year to $25k. Luckily I can already see that AI art is being rejected by many now, so my career is turning around again.
@@stevrgrs It reminds me of how some of the very wealthy need special therapists who specialize in the exclusive problems they have to deal with. "Does this person actually like me, or are they just using me?", and that thought would drive me crazy, but only answerable if they lose most of their money. They probably don't spend much time with their family either because they are more focused on their company/companies and/or political influence.
I make a little less than $25k a year and I'm still living with my mother at 28. What you said is very true. A couple months ago in May I got a really bad sprain in my left wrist and I've been on light duty at my job ever since (I work as a ramp agent for a major airline). I work part-time on paper, but I used to work between 60-80 hours bi-weekly, making $19.17/hr (now its $19.72/hr after my yearly pay rise :) ). Since I'm on light duty I'm prohibited from picking up hours and I have to work my base hours. I was able to go half with my mother on rent and even paid for her car insurance/phone bill from time to time, but for the last 3 months its been rough. I have to do Uber Eats after work to not only maintain the going half on rent agreement, but to stay alive. I've got a car note, debt, phone, utilities, etc. that I also pay for and after 2 days of receiving my paycheck, I'm in the negatives. Its very disheartening and its made my depression way worse than it already was. I also have diabetes and its important for me to keep up with my doctors. Haven't discussed my diabetes since a day after I reported my injury, which has been 3 months and I'm supposed to meet with my doctors monthly. I haven't been able to relax as I'm always thinking about how I'm going to survive tomorrow and making sure I've got enough gas to make it work. Because I'm relying on my car for a passive income, I'm spending a lot more on gas, as I have to fill it up every 2 days. Its very true that the already shaky wheels do go falling off after something like a simple injury essentially makes you borderline homeless in this country.
yep, has has absolutely no business saving only $500/month. have some friends who live in nyc on around $150k/year who are able to save around half of their post-tax income and still live in nyc. in a normal suburb on $100k that should be enough to save at least $2k/month
@@skifast_takechancesNo way. How much is their rent, the rent here in the West Coast is literally 3k for a 2 bedroom apartment, how is that much money enough for 1-2 people.
lol you could easily afford a 50k bmw on $100k per year that’s $900 per month $8,333 - $900 =$7,433 or if you assumed that’s post tax and made $83k per year after tax you’d still have $6k after paying the car pmt
My God, when you said potatoes as the go-to for 'fresh produce', 2 weeks per year for 'vacations' and sick leave, spending $320 per month for food and not having public transportation options available, I am blessed to live in the EU.
The EU has been crushing it lately. So much so, that you’re making American firms think twice about screwing us over just because your market is so big (Apple switching to USB C comes to mind). thank you!!!!! (Side note, what bothers me about having this discussion with other Americans is that they almost ALWAYS lash out with: ‘Oh America is SO bad - just leave then!’ And it’s like…. They’re missing the point. It’s not that we hate America, it’s just so saddening that we truly could be the best place to live on Earth - we have the human talent, ability and determination to do it. It’s just we have chosen not to….. we’ve opted for the system Johnny outlined in this vid…. And it’s depressing af lol) Anywho enjoy your holiday, healthcare and workers rights :( -a depressed American lol
Yeah... I calculated mine because this video felt kinda stupid? Like the way it works in the US I have ~$1800 left after taxes Rent: $270 laundry, and internet included Electricity: $35 Food: ~$380 Home insurance: $10 I bike to work, because Sweden is bike-friendly And that's it. I have $1105-ish left every month. But I do have some non-essential spendings. I smoke, that's $150 a month I drink beer, I eat out, I have a car, I have Spotify, I have HBO and Disney+ I wash my car twice a month I am still left with like $800 that I save every month America is cooked
As a kid, the USA seemed like a great place. Big detached houses, green lawns and nice cars. As I get older and learn more about the country, I have more appreciation for Europe. The townhouses, walkable neighborhoods, bike lanes, public transport, affordable healthcare, etc.
Which means you've grown up and now appreciate what is truly valueble. In The Netherlands we have bike lanes even in the poorer neighboorhoods, so no one is condemned to cars and suffering
Yep pretty much. I've only ever liked the idea of living in NYC due to transport, walkable neighbourhoods etc. Always loved LA too but the driving is too much. We tried walking between some famous sites & regularly ran out of pavement randomly lol. And the suburbs generally just depress me, can't even drive to local metro/train station stop. Same with Florida, literally just going from 1 AC room to a AC car to an AC office/supermarket etc. I've seen more people walk around in heat of Dubai due to good links between trams to the bigger metro via shaded pathways. Heat shouldn't be an issue either. I expect so much more from the world leader but then you relaise half the country literally refutes the concept of government/taxes or spending on anything that isn't military....usually the poorest people too. So broken...yet so powerful/sucessful. Weird af
As a director in Dubai, a friend was earning USD 15k a month, and was able to save $10k of it - same as the avg $1mln income guy in the US. Rent 1800sqft duplex for $2.5k in 1min walk to office, taxi everywhere, personal trainer, mostly cook at home, 1-2 a week eat out or takeaway, lots of clothes shopping.
I love how "lifestyle creep" is so fundamental in this video. If you are making anywhere between 40-60k a year, this will be a huge thing to master to allow you to save more.
Seriously. If you eventually have the salary of the $100,000/year earner and continue to budget like the $40,000 earner (which, yes, means still driving the crappy Subaru), you will have GENERATIONAL wealth after 10 years of maintaining that lifestyle. Which means if you start making that kind of money at 25, by the time you're 35, you can start living a life that's unrecognizable to the average American, even if you never get a single pay raise. Fully paid off house, new car every three years, high-end speed boat, etc. All it takes is sacrificing for a few years up front, but a lot of people (especially young people) who make that $100,000/year feel like they "deserve" to have extravagant lifestyles immediately, which keeps them from ever attaining financial freedom and becoming truly wealthy.
@@EsotericDichotomyyou need school to tell you that you need to save more and spend less than you earn? The internet is free. “I need to know about interest rates” chill.
Imagine being under that $25,000 a year bracket. I'm permanently disabled and my income is based on whatever social security I paid in while I was able to work. I was making $72,000 a year before I became disabled at age 37. So, I make about $18,000 a year from that. Yes, I do qualify for Medicare and it is helpful, but I still have to pay a monthly premium out of my social security check and copays. And anything medicare doesn't cover is out of pocket. The whole reason I cannot work is because of my health issues. I _need_ to see doctors and get prescriptions filled every month. But, I am extremely lucky. I inherited a house from my grandmother that is paid for. If I didn't inherit a paid off house, I have no idea how I would survive. And even with not having a mortgage or rent, I still have to pay yearly property taxes, home owners insurance, and maintenance on the house. I pay someone to cut my grass and I have a general contractor that I call if the pump breaks down or the dishwasher stops working. Last year, my septic system needed to be pumped. I am still making payments on that. I'm not sure where I'm going to get the $2200 I'm going to own on property taxes next year. I'm seriously considering renting out my spare room to a stranger. The whole reason I cannot work is my health but it's my health care costs that make me wish I had a job.
I have been blind all my life but pretty able to work.. until I was fired a year ago and had to move down with my parents who now live in a rural-ish area. I've applied for SSDI, but they're getting older and the house isn't paid off.. they're consistently like "it'll be fine"... They don't seem to get it. I am fortunate to have my parents, I know.. but man is it mentally rough.
As a non-American, this video taught me a lot about your society. I never realised that paid leave is a 'benefit'. I assumed it'd be a minimum legislative requirement. I feel very fortunate to live in a country where student loans are interest-free (because they're through the government), some healthcare needs are funded by taxes & every worker is entitled to 4 weeks of paid leave.
@dougmacdougall2097 - you're very close. I'm a New Zealander. I think our employment law is very similar to Australia. I don't know how their student loan system works, though.
Watching this, I'm now realizing how wasteful I am! Like I nearly spent what is considered some these people's monthly food budget at a restaurant this weekend and that wasn't even my first time! 😳 And just earlier today, I was convinced I was poor/struggling. This is madness. Thank you for this video. I'm definitely reconsidering my budget right now. Thank you 🙏🏿
Correction: It takes courage to talk about this and make the statements that he made in the end (e.g. raising taxes on the rich) At least in the current US political sphere
After this half hour long, important, well researched piece of journalism I still cannot get over the wooden tub. There are wooden bathtubs?! I want one so bad!
@@samueljensen9896 Social Security and Medicare taxes are not refunded. George would pay nothing in federal income taxes on his income of $25k. State and local taxes are a question mark. Depends where you life. If George could manage to get some capital gains from stocks (that he bought REALLY cheap and sold high), he would pay NOTHING in taxes on it, up to a total income of $47026.
Samuel Robson Walton's Ferrari 250 GTO costs about $120 Million. His mechanic makes Home visits too. He pays ZERO in taxes, but abhors having to provide benefits for his employees.
@@agus.lorenzo Cause a lot of his wealth is tied up in stock, they never or rarely sell , instead they take out loans with stock as collateral & live off that. Banks know they're good forit & they can just pay it off via stock. Equally he inherited his wealth so will naturally have countless private wealth that was only taxed once decades ago. If you want something big or fancy the company can buy or pay for it via offshore firms, be it a private jet, a NFL team, a new house, the expenses of your employees/secuity etc. We have same thing in the UK where one of the largest land owners who is nobelty & a lord is worth billions but never pays anything in taxes. Simmilar to the king/queen. It's old wealth, you hang on to it to avoid capital gains tax & inheritance tax is literally only for the upper middle class to pay who don't have lawyers to avoid it.
@@d.b.cooper1 So I guess the interest rate on the loans taken out with stocks used as collateral is cheaper than them having to deal with income tax/capital gains tax?
@ButteredPecan17 exactly. They get insanely low interest rates because for the bank, the loan is not a huge risk - like Johnny said, "they know he's good for it." Plus, when he goes to pay back the loan, he can just pay it off from his profits on other investments. When you're that next-level wealthy, your money makes you more money (that "passive income" that alpha bro shills love so much) so you want to keep as much of it "working for you" as possible. So by the end of it, you've "spent" 15 million dollars in living expenses, but you haven't lost a cent of your wealth doing so - and in fact probably grew your pile even bigger in the meantime!
Cheap labor and lower overall expenses in India. That's why. I make 120k/year and it's considered solid middle class here in the US. But everytime I visit developing countries, I feel like I live like a king, and I'm basically on par with the upper class locales :/ Wealth inequality is higher in developing countries, sadly.
@@gerardhogan8122 I guess it evokes the memory of the beginning "It was the best of times, it was the worst of times" in large quality of life differences dependent on income. The rate of growth of wealth is even more apparent, where it's actually negative for lower income brackets since it's rather easy to fall into debt traps due to random negative events in everyday life. Two people living within 30 minutes of each other in the same city effectively live on different worlds, as it would seem to indicate.
Higher value investments return more cause companies have more choices with larger sums and they will pay more to get your money. That 100 will easily get 15/20 million return. Can live great life on the returns. Even with 1 million cash invested can still get 100 k a year which is 8500 month for sitting on your ass.
@@rodrigojds It's pretty simple. the S&P 500 for example. If you don't want only a 10% return annually from the S&P 500, you can invest in BRK and get the same returns that warren buffet gets (Approx. 20% per annum)
@@rodrigojds They are both done the same way, the stock market. The problem is the extra $10 can just pay for your meal, while the extra $10 million can pay for hundreds of peoples whole lives.
An interesting twist on this format might have been to frame it as 4 people in 4 income brackets who are all employed by the top "earner". George is the landscaper at Robert's mansion, Simon is Robert's private driver, Tim is Robert's private doctor, and Noah is Robert's dinner guest or something like that. The trickle down people want to show you how Robert is creating this ecosystem for all the little fish to live in underneath him but the illusion of upward mobility means those little fish never really stand a chance at swimming any higher in the pond.
You nailed it. I'm trying to start my own business, but in order to make it real I need capital. I make beyond Tim money, but to make Noah and beyond money, the bank wants me to to use our family home as collateral. I can't risk that no matter how good my start-up is. And before you say "find a private investor!"... 8 out of 10 Angel investing setups are total scams.
A friend of mine just sold his landscape business he started in highschool ... for 1.4 million. Everyone can move up in America, you just have to be smart enough to do it.
People often fail to understand that you can't get rich by just working 9 to 6 jobs. Instead, you should try smart investments like stocks, especially with the help of a good financial advisor. I've made significant gains within a year by investing wisely. It's amazing how much your financial situation can improve when you make your money work for you.
Absolutely, I can vouch for that. I've experienced significant growth in my portfolio through stock investments. The ability to diversify and manage my investments easily has been a game-changer. Plus, the long-term returns have outperformed other investment options I've considered. If you're looking for a flexible and profitable strategy, stocks are definitely worth considering.
A lot of folks downplay the role of advisors 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.
I would like to ask, how did you achieve it? I've been trying to stick with index funds. I feel these new interest rate hikes could crash the economy. I'm looking for a better investing strategy, as I have a lump sum that inflation is steadily eating up.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Judith Lynn Staufer’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
You missed a trick for the mortgage at the $25 million bracket, which highlights how broken the system is. Because you have so much money, a bank will loan you the $15 million at a low interest rate because they know you're good for the money. You can then use that loan to invest in the stock market, which, even at a low-risk investment strategy, will have a higher return than the bank's interest rate over the time you repay the mortgage. So you make more money and have a $15 million asset when everything is said and done.
That's basically what you do with any kind of high net value asset, including stocks. Another thing I learned while workinh in finance is the bank would give basically close to 0% interest loans to high networth individuals as long as they kept a balance in their account (because the bank would turn around and invest that money and give them back some of the earned gains, keep the rest for themselves). Money's funny like that, the more you have the less expensive things actually get ¯\_(ツ)_/¯
As a person with an extremely low budget, I must say that, buying essentials in bulk is KEY, a bag of 10kg of lentils, 10kg of potatoes, 10kgs of rice, but not in the grocery store or the supermarket, you have to search for the distributors, grocery stores charge more for less volume, also knowing how to save in services is also key, using less water, electricity, and gas, also a car is not an option you have to find a way to use only a cheap motorcycle or worst case a bike, but a car is just not worth it if you want to leave that situation with some type of little savings, also if you can get a roommate or roommates you'll be able to save more in order to find another way to make more money. For everyone struggling, I'm sending my best wishes to you
Key tip, public washrooms during daytime. (work, school, gym, etc) Home at night. Saves water use. (I use to purposely stay at the library for a few extra hours after work, till dinnertime, use at library, then walk home. Also, less hair wash days (yes, means more greasy hair sometimes), and or go to the gym. If you are financially blessed and own ur grandma's house, not watering the lawn during summer at all helps too.
Yep. Working at Kroger, at $15/hr, still has me having nothing for lunch, because the few items I would buy doubled in price, and my breakfast is the $2.10 dozen of leftover donuts whenever I can get them. Which leaves lunchmeat sandwiches for dinner. Makes me feel great looking at our store manager, the guy who makes $200k a year with $32k quarterly bonuses, and nobody knows what he does. He and his managers don't hesitate to punish us for the slightest bit of relaxing on the job, meanwhile they get six figures to stand around on their phones, sit in their office and chat, not follow schedules, screw with and screw up timesheets, and demand workers to work days they said they couldn't.
Well my friend we all start somewhere usually at the bottom of the food chain and at the end of the dwy he is your boss , such a high paying job doesn't come by being a good worker but he probably went to university and got a masters degree or a diploma in business management. We shouldn't be angry with what others are earning they live there lives how they want to we are all entitled to that, don't forget those managers were in your shoes once upon a time they probably got the same treatment maybe they testing you see how you would react, don't react be better make more sales got to university and become thier boss.. I hope this wasn't a harsh thing to say I'd rather not feel sorry for you but uplift you :)
Here in Perth Western Australia we have our 3 major shopping centres Coles, Woolworths and IGA. Woolworths ceo alone was making around 8.6mil a year and a store manager would make around 110k per year where as an average employee would make around 56k a year. So what am I trying to say is that we all start somewhere and if you want that luxury lifestyle have to work hard to get it, only 1% of people will be successful most will give up before they even start thats life gets to hard so we switch to what's comfortable for us
@@ArthoireI think that he needs to listen to his boss's do what he's told coz from im reading he's just standard employeeim not saying this in a nasty way either it's just as I stated in my other comments you gotta work hard to get that life and only 1% make it anything is possible tjrough sheer determination be the lappy do whatever they say and you yourself will climb that ladder go to school gets your masters ya know what mean these jobs aren't given lightly but to people who have experience and certificates They can boss you around coz thier the boss if people don't like it then they can quit thier job but that wouldn't be smart lose your only source of income hard enough finding a new job these days. Anyways back to the point if he's on his breaks then they shouldn't have the right by law to ask him to work thats highly illegal and can be charged coz your entitled to your 2 breaks a dayt if he relaxing while on the clock the they do have the right to give you a hard time coz its like what am I paying you for scenario no boss likes to see workers relaxing while on the clock that's just fact
One main thing I noticed in your video is that all this characters are alone. No parents, no girlfriend/wife, no kids. No family. And they should be included in this study as they affect this characters both positively and negatively
I was about to say the same thing. Ive had a kid and in a relationship in the last 3 years and my costs have risen by about 45k a year. Families are expensive, no wonder way less people are having kids
one of your best videos yet man! it doesn't have that intensity and sense of urgency that most of your videos do, which are also very good of course. but this one has a more relaxed approach which can be refreshing at times. that being said the edit and the care with all the little details is top level as usual. good job!
Its a bit weird though. Because it doesnt show the standard of living decay. The 100k guy is like a lower middle class guy in the 80s. And hes the top 10% of earners. The movie vacation has the main character doing better than him. Not only that but hes alone as well. The million dollar guy is more like the 100k guy back then. Its gotten extremely bad period. Like we were past the tipping point in the 90s. People were arguing for $15 mininum wage back then. Most people are living in poverty period. 77% of families need more money just to live.
I make 85k a year in seattle and it's horrible. The median price for a single family home is up to 975,000 and renting a single family home is $3600/month. I take home $4600/month and half of that would still disappear to rent
It's generational... if you're already a homeowner, lucky you! The inflated value of your home means you can sell it and buy a new one and probably upgrade. But those entering the market, oh well... you're priced out entirely. Stuck in your 30's, 40's, even 50's with kids living in an apartment that's too small for you even though you're making "good money"
You live in Seattle ... that's your first problem. Any Democrat run city is going to be wildly expensive. Someone has to pay for all those BLM murals and pride flags.
Thank you for making this video. It really hits close to home. As someone who is struggling making about 28k a year, im really scared. I feel like at any moment i can become homeless. I cant even afford to pay my phone bill next month or fix the Air conditioning in my car. Also massively in debt with CCs and student loans. I really hope it makes waves accross our government and politics. Things need to change fast, as everyday i become more and more terrified.
Have you considered the possibility that your fear is what makes you sink more and more into despair? The cure to fear is courage. Only courage can motivate you to overcome your poverty mindset and use your resources (including intellectual) wisely. There are plenty of rags to riches stories. None of them feature "I get more and more terrified" but rather "i was terrified but I did something about it". All you're doing is watching TH-cam in hopes that someone else will save you.
I make over 200k a year but still driving a 1999 Isuzu with no AC. I pay off my credit cards balance at the end of the month and my student loan within 5 years of graduation. Yet, people making less than 30k a year are spending their money on things they can live without and racking up debts while blaming their society for their self inflicted problems 🤦🏼♂️
@@mercury2cim not no “grandpa” im literally 23, and he is right. Spend less or make more. Crying in ur bathroom abt how the “gov fkd u up” instead of working more and leaening skillsets to get you out of there is your fault. Go make more! Or go spend less
Dumb. Most who are rich started out with low wages. America has best upward mobility of any country. If you work, you can easily rise out of poverty. If you want to game all day and spend your money on sneakers and vape, then you will always be a poor loser.
@@fareshajjar1208 lol bro i work hard not everyone has to be a ceo in this life. It’s just funny how older generations were able to work a trade by a house and raise a family but now my generation can’t do the same.
Love this. Thanks you for all your in-depth research. Just an observation, a trip to the grocery store is never just $100 these days. Closer to $200 in my experience this year.
I live in NYC, and I lived in the $25-$45k income range for most of my 20s. Not an easy task in NYC, especially when you don't have the right work papers. Life was so much more stressful, especially when I dropped into the $25-30k range. Every decision I made related to money was a cause for stress, even trips to the grocery store. Forget eating out, dinners out with friends, the movies. I was stretched so thin all the time, and after a decade, it wore me down so much I'm sure it took years off my life. Now in my 30s and a permanent resident, I make about $70k a year, and life is so much easier. It's like a giant boulder was taken off my back. I still run a tight budget because I know the hard times are closer than you think, but life literally started to have more color. I can't spend like crazy, of course, but I can now do little things like eat out occasionally, buy my friend a drink, or just get a new pair of shoes.
When I was in my twenties, there were some months where I had an Excel sheet to track expenses, so I knew how much I could spend and not go broke. Now I finished my studies and that seems like a completely different life to me
I like how you accentuated the ridiculousness of different scenarios without spiraling into judgement. "this is the way it is, and this is what than means."
I think the one thing that works the opposite is Hotels - the more you pay the less you get for free. Holiday inn Express - free buffet every morning. Ritz Carlton - no free buffet, you have to pay for room service, which is astronomical in cost.
@@Synoopy2 sure, but the room service is going to be lobster and steak. Not saying it's a good value, but you're paying for more expensive food than just Belgian waffles and scambled eggs. (although those free continental breakfasts fucking HIT)
This is so depressing. For many years, I have thought, that the U.S. is a paradise for almost everyone. Now, as I delve deeper and deeper the actual, underlying reailty, it scares me. As a European, I wish the every U.S. citizen a better world and a better country (ragarding average life).
There's a lot of poverty in Europe as well, thankfully we have a social security net in most countries, but we still have growing inequality here too. And once you're trapped in social security dependency it's very hard to get out of it.
Thanks for the well wishings. I don’t think any of us are holding our breath waiting for official relief anytime soon though. You could argue that things are working as designed.
@user-kbascd4o24 How does the culture promote infertility? Our culture celebrate parenthood, we spend a lot of budgets on education and social welfare. Problem is inequality when the Rich keeps higher % of GDP there is less money for poor and middleclass to have children so we get negative fertility rate. This is global problem, they have same problem in South Korea. Inequality promotes infertility, not whatever vague cultural thing you are referring too.
The problem I see here is that you upgrade your lifestyle big time when the salary increases. In my opinion, I would not upgrade my lifestyle that much and invest the extra money to let it grow. Earning more does not mean spending more. You do not need to reach 1M salary to start investing in the market.
Add Japan to that list and it would be an extremely informative video. Japan's economy was stuck for a few decades and it's different than most other countries at the moment.
One of the best parts about this video is getting to see everyone’s comments on their place on the chart and peer into the accuracy of what JH was talking about
I know this is a serious video but I’m obsessed with Johnny’s rich boy Robert persona, specifically when he remembers that he needs to buy his Italy house so he needs to get something more modest 😂
The Torah's concept of Yovel (Jubilee) offers a wise solution to wealth inequality. Every 50 years, land returns to its original owners, and slaves are freed, preventing wealth from being concentrated in a few hands for too long. This allows society to reset and ensures that everyone has a fair chance, no matter their circumstances. Yovel reflects the idea that wealth is a gift from God, meant to be shared fairly. In a world where a small percentage holds most of the wealth, this approach could help create more balance and opportunity for all.
Loved this video. I do wish he included a segment in which he added the cost of having kids/costs of having a family, because that’s a huge factor in many Americans day to day.
It's a decent wage by anyone's standards. Problem is housing economy then. Well, Johnny Harris managed to find a crack den in some suburbs for 750 a month, perhaps you could too?
A formally EU buddy I have at work and I figured out the "tax rate" comparison. It's basically the same but the employer takes the healthcare part, property taxes, gas taxes, sales tax. It all adds up over here in the U.S of A to where it's basically the same. We just don't get as much vacation and the health care is bismal for those that make too much to qualify for Medicaid and too little to be with an employer that provides a group funded policy.
Stop spending money on clothes and irrelevant crap. I make a great six figure living and I canceled my Netflix subscription because it went over $14. That’s the difference between those of us with money and those of us without. Decision making is a big deal.
You see these viral posts of receipts every year from clubs/resturants in London, Monaco, Dubai to Vegas. Truly mind boggling. Even wilder is just how many people follow those insta accounts & suck up to the people.
idk why but i really like watching you, you have this chill nonchalant vibe without pushing too much content and not funny jokes, keep going just subscribed
Seriously tho. This is so bad like wtf? I'm French and earn around €1650 a month and I live rather comfortably and I can put aside 500 to 800 every month. I'm not rich rich but I really am well enough. I have a friend who earns just €200 more than me every month and she has a loan and a house. The difference with the US is astonishing
Americans also seem to have way more health problems, more environmental pollutants, don't have to spend so much on Doc here in EU due to better standards.
Yeah was thinking the same. I earn basically the same in pre-Belgian-tax-euros as the $40 000 example, yet I can live almost like the $100 000 example here (in a simple apartment though, but in a city centre which means I don't need nor even want a car). Really goes to show how well we have it here in Europe.
I used to sell luxury appliances. Some of my clients had two kitchens in their home. A show kitchen with Sub-Zero/Wolf / Viking / Miele appliances and a "dirty" kitchen in the back that they actually used (typically with higher end appliances like Bosch/KitchenAid). These show kitchens are what you see in these multimillion dollar homes.
Fascinating, as someone who likes to cook, i always thought of a kitchen as a working space, not a status symbol. Were the appliances better in the "dirty" kitchen, or did the clients not know about such lowly matters?
One root cause: Owners are more and more disconnected from workers. The American Dream relied on a low level employee impressing the owner with hard work & intelligence and moving up. Owners had companies to make a living for themselves and their employees (so cared more about them & the working environment). Owners of bad companies were known, so could be bad mouthed and avoided (so they had to treat people well to be sustainable). Now most can’t tell you who the owners are … it’s a million different share holders. Owners can’t be held accountable bc they hide behind layers of companies and big crowds of shareholders. The actual company leaders are bound to “shareholder value” over all else - including culture & livelihoods of employees. Even if certain shareholders wanted to prioritize employee satisfaction over certain growth, they couldn’t really do anything bc of other shareholders. Now, companies are purely investments and people are widgets. Genuinely, why would the low or mid level employee break their back to work hard anymore - the upside is capped. True gains are made these days by your connections in the investment world-- a group of people that rarely interact outside their circle & have to even less over time as the wealth gap widens.
Owners were disconnected from workers back in the 1920s, What you are talking about is unionization. Unionization forced Owners to engage with their workers and be present, not just because workers had a seat at the table but if an owner got complacent, their workers would threaten to unionize. If you want good, high paying jobs back in this country, you need robust and strong unions.
As someone who's not from the US, the problem in the US is that everyone encourage the same huge corporations. Instead of having thousands of small and medium sized businesses that create a lot of jobs in the middle class income, you have fewer businesses that make billions. Looking at restaurants and grocery stores are a good way of visualizing it. In France, if you get into a small town, you will see tons of small independant family-owned grocery stores, small family-owned bakers and public markets where farmers sell their food directly to consumers. You will also see tons of small family-owned restaurants In a small town in the US, you'll find a Walmart and a McDonald's
I pay about $20k+ a year for healthcare including $1k per month premiums, $7k deductible plus co-pays and non-covered medications and expenses. That is not for concierge medical care. I still wait for appointments, get charged for out of network docs, and denied for medications not on the formulary and compounded meds. I still have to fight to get some things covered that are supposed to be covered yet get denied. At this point I can afford it, but it’s a big chunk out of my budget. This is healthcare in America.
In the end, it's more or less the same regardless whether you live in the home of capitalism or a socialist european country. It's just that the socialist citizens don't have to think about paying for the healthcare manually, but pay twice the taxes instead. Give or take.
Been there. I was paying $800/Mo for required insurance for my wife and I (thanks Obamacare, not!) that covered basically one physical a year an almost nothing else. I was bringing home about $2k a month at the time. I was more broke every month. Ends did not meet because of the healthcare costs. Wife was too lazy to work and help. She’s now my ex.
making 150k/y in Germany as a consultant (~5 years of exp, working 80h/week), meaning ~6800€/m net: - 1500 rent - 1000 savings for vacations - 800 splurging on random things - 300 food (mostly eat at work which is paid for) - 200 for other household expenses) - no car - company paid transportation - 1000 savings account - 2000 investment account
That grey area where you earn "too much" to qualify for state aid, but not enough to live, is killer. I say this as someone who lives in a state where $7.25 is still the minimum wage.
It’s like “get 20% discount when spend more than 100$ on electric” and those affordable one are 49,50$ so you’re forced to buy 3 instead of 2 or buy the more expensive one which is 80$ or something.
This is a great Analysis! $100,000 use to be the ideal income. It’s still a great income but in this economy it’s the equivalent to $65,000/year. A few years ago my employer had to do a cost of living adjustment to our salary. I’m grateful but not all employers can do so.
@@williamyoung9401 but seeing it told again and again in different ways reminds us that this is the reality we’re living in. And hopefully (hopefully) creates momentum for change. Tax the rich.
The funny thing is johnny makes a lot of money on youtube according to socialblade, possibly a million dollars per year yet criticises his own income bracket.
In Croatia if you earn 5000 € a month (1100 is the average) you can practically live the same lifestyle as your 1,000,000 example. And this is crazy for me to think about.
@@BokaSandro😂😂😂 how life's crazy around the world, if you've never traveled and see different lifestyles , anyway here in Africa most people thrive with 300 dollar a month and it's a decent life so talking about 1millon dollars wooow you're a billionaire in my country's currency 😂
Maybe if you isolate yourself to the local economy. The moment your spendings are based on international prices (eg. Plane tickets), you can no longer spend like the 1m example.
Love this video! Reasons: provides value, interesting,can learn from it,you spent work on (and i can see it),high quality, good character ( and no im not a bot just because i like the video)
The jump from 100K to 1M is wild to me. Should do this for a family of 4 Edit: I also find it interesting that the most replayed spot on this video is at 40K a year
You add a wife and you better be making double for the same lifestyle. Yes you share a home. But she's gonna spend you down as much as you let her. Yes this means a couple at the 25k bracket needs roommates still. The reality is that both of the couple work and contribute, so you have 2 people making 25k each and you just barely make it. EDIT: Add a kid and a 25k couple might as well die.
Holy shit, hear me out: I am a 24yr old university student in one of the most expensive cities for students in Germany. I live almost right downtown in a nice 44 sqm/470 sqft apartment with my girlfriend. We each work around 10-15 hours a week. I have a relatively well paying job for a student and with child benefits (we don’t have kids, we still qualify for it ourselves) we have enough money to afford a lifestyle like the 100k example did. Except house and car, because we rent and live in a city with exceptionally good public transit. Now granted, this is probably not a representation of the average German student because I focus a lot more on making money than on studying, but I’m almost certain that in this city alone more than half of the students can afford a similar lifestyle minus the house and car.
@@seanstewart8942 Child benefits in Germany are paid until you are 25 as long as you are in university or an apprenticeship. As soon as you don't live with your parents anymore they are legally obliged to pass it on to you. It's not heaps, but something like 250€ a month...
You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸also paid for my son's surgery (Oscar). Glory to God.shalom..😊
I have been in the market since 2022, I have a total of 795 thousand realized with my 65 thousand invested in Bitcoin, ETFs and other dividend income, I am very grateful for all the knowledge and information you gave me.
You’re wrong about the taxes on stock compensation. When employee stocks vest they pay income tax just like everyone else. After that if the stock grows then they’d be paying the lower capital gains tax.
@@GeoW-c9b right I learned back in 2010 that buying was insanely cheaper than renting even back then in the middle east coast. Couldn't imagine how much rent is now
You missed a major gap in the distance between 100k and 1M that is common in most of the major cities in the US. Also, getting a 50k vehicle on 100k is really really dumb and not common.
I said the same! $100k a year doesn’t buy a luxury BMW AND a luxury condo with $460/montn HOA AND vacation with $300/night hotel and restaurants. That’s a way into lots of debt
Right lol. I noticed a lot of the comparison videos involve spending on materialistic things to the absolute extreme.. I make roughly 36k per year after taxes. now while I could have gotten a $250,000 house, a nice car, and other waste of money toys I decided to get a smaller fixer upper house with more property for $120,000 and keep my decade old dodge ram and get a 83 dusty truck top camper for free instead of spending $500 a month on a new one. Now by just doing that I was able to cut my cost of living by 30% of what a lot of people pay.. So now with the 30% of money I've saved over the past 5 years I've been able to dump $25,000 into my house which increased the value 2.5× of what I got it for this year. It's possible to live the American dream by controlling your spending and proper investment of the money saved.
@@buck-mq3qo what city do you live in where you can buy any house for 120k? That's an absurdly low amount compared to where a large percent of America lives.
This was scarily accurate for the 40k and 100k brackets - the mortgage for the 100k was spot on ($2300 before any HOA), and the “can get by but doesn’t really have any extra money” for the $40k
Choices. That 40-100k earner can live in the the same place they did as a student (unless it was their parents basement). There is no rule that says you are entitled to an overpriced house and overpriced car because you earn a certain amount. People have lifestyle creep that advances faster than their earning potential. I have played that game, it is mostly self imposed limitations.
@@Miner-dyne Yea but none of these examples have children. Imagine raising a child in a 1 bdr apartment. I agree it isn't perfect, but it shows what is a reality for many.
You forgot an important aspect of the $25MM, or even the $10MM+ networth individuals. The trick is to buy appreciating assets, and then borrow money secured against those assets, often at lower rates than the growth rate of those assets. That way you can 1) spend future money now, and 2) write off expenses against your loans, and 3) lower taxes since you have a close to 0 net income.
Thanks for watching! Make sure to also check out our most recent video on Kurdistan: th-cam.com/video/H3VvJRKZFHc/w-d-xo.htmlsi=2l6vGYlB0Lu8g3K4
Your 25k vs 25 mill video makes me want to call for a revolution! I spoke with my landlord and they told me they price rent as though 2 people or more will live in an apartment. It is absolutely disgusting. Massachusetts, NY, CT, NJ and the Northeast is becoming unlivable. We need 25 an hour not 18 an hour we need major increases in our incomes! If not we need a revolution!
Please make video about the protest in Bangladesh.
You highlighted the wrong category at 8:37. Is the figure still correct?
This income comparison is one of my favourites - even as Swiss Simon version 😃
This is just as applicable to Europe, You really make some good videos😄
I make about 50k a year in Berlin, Germany, which is about 2750 euro a month after tax working as a sales manager.
- 650 euros for renting 1,5 rooms flat with electricity and internet
- 100 euros for car insurance and gas
- 29 euros public transportation (Car in the city is not useful)
- 400 euros for good quality food
- 150 euros for eating outside
- 150 euros for phone, gym and other subscriptions
= about 1200 euros left.
I can travel, buy cloth, and safe some money and even invest in ETFs. University and healthcare are included (free).
Just wanted to give you a perspective from Europe.
The 1.5 room is the trick you are doing here, good for you, very rational
I am the same, i have 1 room all included for 300eur in western europe
you’re living in a shoebox, that’s the difference my friend, though that’s what i would do as well lol
you damn socialists you /s
We and my wife make $70k combined here in the US. We can save roughly $2k a MONTH by paying attention to our money. Not all Americans are the ‘averages’ he’s talking about in the video.
@@good-tn9sr I'm assuming you're not from Germany and not familiar with our (somewhat unintuitive) way of counting rooms: 1,5 rooms doesn't include bath and a kitchen, those aren't counted, which means it's most likely a bedroom and either a smaller room or a dining area in the kitchen. And knowing Berlin it's probably the latter. Given that they're paying 650€ and an average price of 17€/m² I'd say they're probably living in a ~40m² (430sqft) flat. It's not too spacious but enough for a living alone university student.
The added touch of Johnny's money deducting being the same sound used in Yu-Gi-Oh when the players are losing life points reallly hits home. Thumbs up to the sound engineer/editor.
I am happy to know I wasn’t the only person to instantly recognize it.
I was about to point that out I am an avid yugioh player
It sounds beautiful. The instant nostalgia gawd damn.
In the last video they used the Navigating-Sounds of the Nintendo Switch and it kept me confused for half the video until I realized.
Literally so happy I'm not the only one on this haha :)
The one thing Johnny forgot to include in this amazing video is STUDENT LOANS. 43 million Americans owe on average $32,000 in debt, and that is also a major expense they have to pay monthly. Some of his assumptions for the middle class earners means they naturally will have to go into debt to afford their lives.
For the win!
majority of those with student loans follow studies that are completely useless. like sociology studies and stuff like that.
Ohh yeah I should have included that!
@@johnnyharris Right now the video is perfect mirror of Austria. But if you add the debt in the USA - it means Americans are poorer than us here!? This blew my mind!
Most don't have student loans
Things about this video that I loved:
- You did not assume all of your viewers are from the USA
- No super annoying music that is louder than your voice
- I hear you like you're talking to me personally
- The actual real data
- Realistic scenarios
- Simply put and well explained (video editing is great too)
Things about this video that I did not love:
- Now I feel obligated to watch your videos because they're such good quality and not giving me a sense of stress, anxiety, or missing out
Well said. Excellent content.
If your barista cannot afford to live near the cafe, then it's not really a city, it's an amusement park.
Damn😟. Your right.
Pretty much a city run by slaves for the rich to play in
barista was meant to be a job you do while you work toward something better. Your not supposed to live your entire live supporting a family with a job as a barista
@@Shipitontimeplsno, but they should be able to live a simple life while they're getting started
@@Shipitontimeplsthat’s the point!
The job is so insignificant you might as well not work it.
It’s like putting a bandaid on a tumor.
You already know you're a great storyteller. But Johnny youve outdone yourself. This is exactly what people wanted to know and have contextualized and you did it perfectly
Wow what a generous comment. This applies to my incredible team too. They make so much of this come to life. I’ll pass this along ❤
He did it Mr Beast Style ;D and yes, did well.
@@johnnyharrisThis seems to be for one-person family with no student loan and no dependent child or parent. Also, one need to spend at least 20$ a day for a bare minimum with skipping meals. How you count it as 10$/day for the first two cases?
@@Boxels well uh mrbeast fakes his video plus manipulates his fans sooo no but he did an amazing job.
+
This is why I love TH-cam. I hope this video makes the front page and stays there.
@@PaulBilly bidenomics is working, eh?
@@zoanth4Obviously those Trump tax cuts have done wonders
@mr12aT they did help, it raised wages and corporate profits which everyone benefitted from until covid and biden wrecked it all
@@zoanth4 😂 you’re a comedian
@mr12aT are you economically better off from 2016 to 2020, or 2021 to 2024? Be honest
I got 60k now and I got no where to dump bro, everything is jacked up in the stock market.
Semiconductors copper wire manufacturers chip makers. Welcome to the e.v. era
You don't need to find the next NVDA to succeed in investing. Just choose top-notch ETFs and partner with a financial advisor like I did. I turned $100k into $53,000 in annual dividends-a significant milestone for me today.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Judith Lynn Staufer for years and highly recommend her. Look her up to see if she meets your criteria.
I found her profile online and reviewed her credentials. She has a lot of relevant experience. Thanks for sharing her information! I've already sent her an email to get in touch.
The costs to repair and maintain that Toyota are not tremendous but as the saying goes, "a thousands dollars isn't a lot of money until you owe it." George is one unexpected repair away from being unable to get to work, losing his job, and being unable to make rent. Something a couple of the examples have in common is that they rely on used cars. Public transportation is often marketed as being better for the environment but it is an economic good too. Unexpected repairs can totally derail the lives of hardworking Americans and cost the public money. Public transportation provides a measure of stability which is good for the overall economy.
Also, good luck if you have to raise a kid.
Exactly this ^ car dependency's externalities don't just stop at the environment, but reach deep into our personal wallets in the form of both higher taxes and personal vehicle expenses
Cities should rethink public transit. How about autonomous driverless minibuses car pooled and ordered by low income folks from their phones which uses AI algorithm to move people around. City buses are so inefficient. Cities should also provide subsidies for E-bike rentals for people like George. Also how about a big bus, equipped with health facilities and with nurses and some doctors going around low income areas of the city to provide free health and dental health care to folks earning below $40k/year.
If only the AC was broken I could still drive it
You just touched on why extended warranty’s are such big business in the US. They part on people who don’t have the savings for a major repair so they pay monthly for a rip-off warranty for peace of mind. Kind of a poverty tax of sorts.
It’s crazy that I was JUST talking to my grandma about this exact topic a few days ago. She kept saying, “I survived off of $75 back in the day.” I broke everything down as if someone just got out of school and made $15/hr, proving they could not afford an apartment where I live.. it’s sad how terrible this country has gotten in the last 20 years. This video really made me appreciate what I have, I don’t have much.. but it would be ignorant for me to say I have nothing compared to $25K a year. Thank you Johnny for making a masterpiece in-regards to explaining how hard it is for MOST Americans to live.
Your phone is listening you
@@ryanlima2267 while that’s definitely true, it was prior to Johnny releasing a video explaining the same topic we discussed. So Johnny must be listening too.
@@NightmaresBTWjohnny is always listening.👂
I live in Romania and work in IT. Started with no experience, I now have 3 years, and while I never got promoted, they made an 'Elite team' in our project, with special assignments, and I got chosen for it pretty quick, which came with a salary increase.
Currently I earn 9490 lei, but after taxes and medical insurance I am left with about 5480 lei + some meal tickets (coming on a card) in value of 360 lei / month.
That is 2088 USD, from which I am left with 1206 USD and 80 USD on the meal card (money I can generally only spend in grocery shops).
I am lucky to be providing support in English and German, and the German language brings me 3000 lei out of the total of 9490 lei. People who don't speak a second language (at work we consider English as a first and a must, so in reality a third language) are not as lucky, especially the ones not being part of our elite team.
Most colleagues pay rent or mortgage. I still live with my parents, since my other siblings moved out. We do have 3 bedrooms in total, or a total of 5, if needed, during the summers.
My parents' pension combined is less than what I make, so I try to also help out with different monthly expenses.
I don't go out much, but I still somehow manage to spend quite more than I can imagine. Especially because of unexpected events - like car breaking down, US cousins coming to visit or traveling though Europe and needing me with them, wedding invitations, computer or different devices replacement or (rarely) upgrades, sometimes a game I like, etc.
I keep saying I will be trying to save more, but I rarely manage to do it. I hardly imagine how people with lower incomes can make it.
Life in Romania isn't cheap, but it's cheaper than in US.
US average price for Diesel is now 3.788 USD (I assume per gallon, which is 3.78541178 liters). In Romania we pay 1.66 USD / liter, which is 6.283 / gallon, which is 1.66 times more than you pay, even though we have lower incomes.
A trip of about 1800km (1118 miles) costed me last month 270 USD, if I remember correctly. You would've made the same trip with 163 USD. Other than that, services are usually cheaper, prices of some foods and drinks are the same, but restaurants are generally cheaper, considering that one pays partly for the service, not just the food.
Sorry for the long story, I just wanted to let you know everyone feels your problems. My mon's pension when she stopped working (16 to 59, she stopped early) is 308 USD (after taxes). After a few more years she might get up to almost 400 USD. My father has just a bit over that.
@AbelSorin Thank you for sharing.
"To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable." - edgar bronfman, ceo of Seagram
Or just put it in a cd for 2 years.
It’s easier to lock up your money if you have millions to spare but when you’re dealing with 100 it’s a struggle
@@NightNurseMike It's also easier to make another 100 dollars while making another 100 million doesn't happen with labor alone. (labor being something everyone has while the ability to make another 100 million isn't something most people have)
@ProudAmericanAmerican gpt already halved coding jobs, no?
@ProudAmericanAmericanrobots won’t ta
Robots won’t take over labor low wage jobs. Like building houses, roads, walls, buildings. They will take over office jobs that tend to be higher costing 100k pre person pay kinda jobs before it will take away anything from the low wage labors.
I make about $30K a year after tax, working 50 hours a week. Or $2500 a month, My expenses:
- Housing = 0 (I live with my parents)
- Transport = 0 (Public transport + returns on transportation)
- Healthcare = 0 (I still qualify for free Healthcare)
- Tuition = $350 (For an accelerated double major bachelor's in a University)
- Food = $150 (I live with my parents + ordering here and there)
- Electricity and Internet = $0 (I live with my parents)
Leftover for vacations, quality of life upgrades or savings: $2000 a month.
Conclusion: live with your parents.
$350 for tuition?
@CHILLknowsfootball Around $1400 Per semester (Assuming 2 long semester and a shorter summer one) divided for every month. That's a pretty typical amount to pay in public universities for every country outside America. Private universities aren't much further either...
Somebody once told me “It costs you more to be poor.” 🤯
No it costs you more to be middle class. Poorest get things for free
@@ranx9078 no they don't. that's why there is so much debt trying to stay afloat.
@@NoctLucisCaelum dude middle class does not get any benefits and pay the most tax.
@@ranx9078 you're right but the difference is the poorest would not be able to pay any tax without the help because they'd be homeless, out of work or dead.
@@dns-n8u well, I have seen people in California with 6 kids and making 20k a year getting free healthcare and 5000 additional cash a month…
I cannot stress enough how amazing this video is! Everything from the story telling to the editing, and most of all, the message! Thank you!
Bros rich 💀
bro is not george
Wow!! Thanks for the generous comment. (And the tip!)
@@johnnyharris I've never seen the pay gap explained like this, it's very eye opening!
Bros Noah 😭
"I get to spend 25 dollars on a Salad" This sentence will live rent free in my head for years. I hate it.
Yeah, who eats salad?!
"You’ve accidentally given me the food that my food eats."
Bruh. That's alot just on a salad.
Not unheard of price on the high cost of living coastal cities in the US. Sweetgreen is like 16 already, and poke bowl places are like 19. It would have to be a fancier place but yeah
@@seriousbeesDon't Americans have local markets of local farmers? I can buy there enough saldo, vegetables and fruits for about 20-30 euros for the whole week...
@@houseplant1016 Farmers markets exist but they are expensive. 20 to 30 euros could buy enough for a few salads but depending on your veggie consumption you may need more
Everyone is expected to have one foot in smart investments like the stock market as passive income to compliment the daily 9-5 grind. Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies.
Invest in S&P 500 ETF, for as long as possible. Do it as often as you can. Try not to withdraw this money and let compounding do its work. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
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.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I love how he said “frugal” and not “cheap”. My parents used to own a high-end luggage and handbag store and used to tell stories of how some super rich ppl went out of their way to save as much as a few dollars on a handbag. You wouldn’t believe it.
Thats a lot to do with why they're rich, it's an attitude that the decadent west is fast losing
@@JaiHylRubis I don't think you can become a multi-millionaire just by being frugal. Maaaybe you can make a very dated argument about eventually being able to afford a house or something, but not true wealth. There may be a correlation, but definitely no causation on this axis.
@@JaiHylRubis You're not wrong but being frugal is just 1 aspect of many many more that makes you able to be so obscenely rich, and for many those aspects aren't at all as positive or aspiring as being frugal. The "issue" is systemic, many people who are frugal don't become rich because the incentive structures put in place are so monstrous that those people hold on to their humanity instead of selling it for money. This is especially the case with people who work to keep their family, friends, loved ones and what they believe in above surface in this difficult climate.
@@JaiHylRubisnaah its kinda dumb. Beeing smart is not buying that BMW if you are the person earning 100k. Saving a few bucks when you make millions is insignificant.
@@hansklok3564 truth LOL!
A whole video about once you reach a disposable income bracket you can just drop all of that extra money in the stock market and allow it to make money 24/7 as long as you have a good fund manager...
But please tell me again about how saving a few dollars puts you on the road to become a millionaire.
Step one to fixing society's financial issues education... Although millennials, gen Z, and alpha are all starting to figure out that the game is rigged. Too bad it took millennials so long to catch on with the program.
I went from making around 35k to 85k in the last 4 years through raises and promotions at my current workplace from a machine operator to a management position. Even THAT feels like a COMPLETELY different reality.
Same, I went from 40k to 82k in the last three through raises and promotions. My life is totally changed
Congratulations to you both! I hope more people at the lower income bands work hard and intentionally to go up the ladder and change their lives instead of waiting for others to fix it for them. Well done!
That's wonderful! Now focus on holding on to this amazing achievement and look further in life. Maybe even start taking care of your health more.
The trick there is to not spend much more than you were. Obviously decent food and health care that extend your life expectancy and health expectancy are worth paying out for, but so many people double their income and immediately double their expenditure in things like housing and a nicer car when they could have been saving and investing that income. You'll see both reactions in the people around you and you'll see which gives people a better future.
Changed by saving 40k more per year and getting out of the "no money" trap in 3-5 years or spending a lot more each month and staying in the same trap (albeit at a higher level) indefinitely?
A $50k car and regular detailing is like lighting money on fire. A complete waste of money for the middle class.
It's true, I wouldn't spend the money that way. But many do, and aside from that one, I think he told a pretty common and understandable story for each income bracket.
yeah, I thought his 50k and 100k examples were living beyond their means. Maaaaybe if you lived about 20 years on 100k, you'd have the savings to let loose a little bit like that, otherwise you are just pushing your own self down a few notches for no good reason.
I make about $30k /year and bought a $30k van that I now live out of. That’s the new American dream, bundling both my transportation and housing in one. The unexpected cost is that most parking places cost around $600-800/mo so I’m not really saving any money, unless I want to move everyday, which is expensive on gas and exhausting mentally. But I do own my own home!
The spending in the middle class categories seemed pretty lavish to me as well, but not unrealistic. I know many people that make much more than I do, but live more poorly than me, because of their spending habits. Fifteen years ago, I was making about $40k and I felt like I was rich (granted the housing and car markets were very different at the time but other expenses were comparable). I spent money like I was poor, so I was constantly putting money in the bank and never worried about when my next paycheck would arrive... Live below your means and play the game if you want to climb up to a higher bracket. The system isn't made for you to advance, but it's possible if you do it smart and put in the effort.
@@Den3productions Heya, just wanted to chime in here. You might want to try networking with people in the area and see if someone might have a driveway or piece of land you could rent for a few hundred instead. Can also put up ads on Craigslist and such.
"$27,000 feels to me what $43 feels like to Simon" 😮💀 this world...
Is that compared to the income though, or the net worth? Because Simon's net worth is basically comprised exclusively of his income.
I like how he discusses the very intangible benefits of earning more: access, connections, health, safety, noise, free time, etc
The relationship one has with risk is also totally different. You can have an idea, start up a business, hire a team of people highly talented people to help you build it while you steer the ship, and if it fails, it literally doesn't affect you. At all. (Though that team of highly talented people gets cut loose to figure their lives out.) If it succeeds, you can feel secure in the knowledge that you "worked hard and earned your success". A very different experience from the bottom 99%, who might have amazing ideas, but no time, capital, or risk capacity to do a damn thing about it.
@@EggTamago7 totally... And a lot of things are more expensive for poor people as they have to pay interest and fees a lot
Also the implicit cost of paying people like a security guard just barely enough to survive, making them more susceptible to bribes. A society with increasing income inequality makes bribes easier and cheaper for the rich people to do and more necessary for desperate poor people to accept, like a negative feedback loop, leading to more bribes and more unequal society.
@@EggTamago7this is true
@@EggTamago7 Kind of how kids of really rich people have infinite chances to start businesses because they are being bankrolled by their parents money + their connections and if one of those businesses succeeds the media now claims this kid is "self made". Its so ridiculously aggravating.
The fact that health insurance costs this much in the US and then the companies get to move the goalposts and deny all kinds of claims is ridiculous...
its the same in germany... if not worse.
Thats what happens when he government subsidizes health care. Prices rise.
@@internetceo At least it's mandatory, employer pays half of it and nobody is scared to get picked up by an ambulance because he would need to declare bankruptcy later... :)
If I had it, full insurance for my wife and I, is more than our mortgage...
12:44 @@internetceo
People with 25K a year with no family support are one accident away from homelessness!
Even with family support. Most likely their family is one accident away from homelessness too :(
Tbh, it’s actually a positive for society. It’s really messed up that the 1% gets all the gold, but they are also statistically the most depressed , have kids that overdose , are married multiple times and have lousy relationships, have no real sense of purpose, and die lonely.
Meanwhile, the “poor” family has a strong bond, good relationships, give their last dime to help each other, and die surrounded by family and friends :)
Can confirm. Somehow dug myself out of homelessness after AI took my career for a minute there (artist and designer). It was a terrifying moment in my life to go from $80k a year to $25k. Luckily I can already see that AI art is being rejected by many now, so my career is turning around again.
@@stevrgrs
It reminds me of how some of the very wealthy need special therapists who specialize in the exclusive problems they have to deal with. "Does this person actually like me, or are they just using me?", and that thought would drive me crazy, but only answerable if they lose most of their money. They probably don't spend much time with their family either because they are more focused on their company/companies and/or political influence.
I make a little less than $25k a year and I'm still living with my mother at 28. What you said is very true. A couple months ago in May I got a really bad sprain in my left wrist and I've been on light duty at my job ever since (I work as a ramp agent for a major airline). I work part-time on paper, but I used to work between 60-80 hours bi-weekly, making $19.17/hr (now its $19.72/hr after my yearly pay rise :) ). Since I'm on light duty I'm prohibited from picking up hours and I have to work my base hours. I was able to go half with my mother on rent and even paid for her car insurance/phone bill from time to time, but for the last 3 months its been rough. I have to do Uber Eats after work to not only maintain the going half on rent agreement, but to stay alive. I've got a car note, debt, phone, utilities, etc. that I also pay for and after 2 days of receiving my paycheck, I'm in the negatives. Its very disheartening and its made my depression way worse than it already was. I also have diabetes and its important for me to keep up with my doctors. Haven't discussed my diabetes since a day after I reported my injury, which has been 3 months and I'm supposed to meet with my doctors monthly. I haven't been able to relax as I'm always thinking about how I'm going to survive tomorrow and making sure I've got enough gas to make it work. Because I'm relying on my car for a passive income, I'm spending a lot more on gas, as I have to fill it up every 2 days. Its very true that the already shaky wheels do go falling off after something like a simple injury essentially makes you borderline homeless in this country.
@@MakeYourLifeaWorkofArt hi, could you please specify which company or field did you work for and elaborate how AI made you lose your job?
i love at the end he does not even show how much money a month he has left. it really helps sell the mind of someone at that level
The guy making 100k a year has no business financing a 50k BMW.
yep, has has absolutely no business saving only $500/month. have some friends who live in nyc on around $150k/year who are able to save around half of their post-tax income and still live in nyc. in a normal suburb on $100k that should be enough to save at least $2k/month
@@skifast_takechancesNo way. How much is their rent, the rent here in the West Coast is literally 3k for a 2 bedroom apartment, how is that much money enough for 1-2 people.
lol you could easily afford a 50k bmw on $100k per year that’s $900 per month $8,333 - $900 =$7,433 or if you assumed that’s post tax and made $83k per year after tax you’d still have $6k after paying the car pmt
@@Awc198 Oh I wish my tax was so low
@@sxchen1268 $6k is based on a 25% and marginal tax rate of 34.5%
My God, when you said potatoes as the go-to for 'fresh produce', 2 weeks per year for 'vacations' and sick leave, spending $320 per month for food and not having public transportation options available, I am blessed to live in the EU.
where do you live btw ?
@@sigfigronath not op, i live in poland and i am amazed too at the differences
The EU has been crushing it lately. So much so, that you’re making American firms think twice about screwing us over just because your market is so big (Apple switching to USB C comes to mind).
thank you!!!!!
(Side note, what bothers me about having this discussion with other Americans is that they almost ALWAYS lash out with: ‘Oh America is SO bad - just leave then!’ And it’s like…. They’re missing the point. It’s not that we hate America, it’s just so saddening that we truly could be the best place to live on Earth - we have the human talent, ability and determination to do it. It’s just we have chosen not to….. we’ve opted for the system Johnny outlined in this vid…. And it’s depressing af lol)
Anywho enjoy your holiday, healthcare and workers rights :(
-a depressed American lol
Yeah... I calculated mine because this video felt kinda stupid? Like the way it works in the US
I have ~$1800 left after taxes
Rent: $270 laundry, and internet included
Electricity: $35
Food: ~$380
Home insurance: $10
I bike to work, because Sweden is bike-friendly
And that's it. I have $1105-ish left every month.
But I do have some non-essential spendings.
I smoke, that's $150 a month
I drink beer, I eat out, I have a car, I have Spotify, I have HBO and Disney+
I wash my car twice a month
I am still left with like $800 that I save every month
America is cooked
Bro i literally go through the same stuff in europe(belgium)
As a kid, the USA seemed like a great place. Big detached houses, green lawns and nice cars. As I get older and learn more about the country, I have more appreciation for Europe. The townhouses, walkable neighborhoods, bike lanes, public transport, affordable healthcare, etc.
they have those in the US too but they are usually some of the most expensive parts of the country like Lincoln Park Chicago or Greenwich Village NYC
Which means you've grown up and now appreciate what is truly valueble.
In The Netherlands we have bike lanes even in the poorer neighboorhoods, so no one is condemned to cars and suffering
@@Jagdkomodo I know, I live in the Netherlands ;-)
I thought the same, currently live in Australia! Very grateful to live here, I like free /affordable health care :)
Yep pretty much. I've only ever liked the idea of living in NYC due to transport, walkable neighbourhoods etc. Always loved LA too but the driving is too much. We tried walking between some famous sites & regularly ran out of pavement randomly lol. And the suburbs generally just depress me, can't even drive to local metro/train station stop. Same with Florida, literally just going from 1 AC room to a AC car to an AC office/supermarket etc. I've seen more people walk around in heat of Dubai due to good links between trams to the bigger metro via shaded pathways. Heat shouldn't be an issue either. I expect so much more from the world leader but then you relaise half the country literally refutes the concept of government/taxes or spending on anything that isn't military....usually the poorest people too. So broken...yet so powerful/sucessful. Weird af
As a director in Dubai, a friend was earning USD 15k a month, and was able to save $10k of it - same as the avg $1mln income guy in the US. Rent 1800sqft duplex for $2.5k in 1min walk to office, taxi everywhere, personal trainer, mostly cook at home, 1-2 a week eat out or takeaway, lots of clothes shopping.
I love how "lifestyle creep" is so fundamental in this video. If you are making anywhere between 40-60k a year, this will be a huge thing to master to allow you to save more.
Self discipline is the key to avoiding and destroying debt. Financial knowledge is the key to growing what you have.
@@starventure I wish they taught Financial Literacy in schools. It is a disgrace how uninformed people are on such a crucial aspect of being an adult.
@@EsotericDichotomy they do - in the private expensive schools. Public schools? never.
Seriously. If you eventually have the salary of the $100,000/year earner and continue to budget like the $40,000 earner (which, yes, means still driving the crappy Subaru), you will have GENERATIONAL wealth after 10 years of maintaining that lifestyle.
Which means if you start making that kind of money at 25, by the time you're 35, you can start living a life that's unrecognizable to the average American, even if you never get a single pay raise. Fully paid off house, new car every three years, high-end speed boat, etc.
All it takes is sacrificing for a few years up front, but a lot of people (especially young people) who make that $100,000/year feel like they "deserve" to have extravagant lifestyles immediately, which keeps them from ever attaining financial freedom and becoming truly wealthy.
@@EsotericDichotomyyou need school to tell you that you need to save more and spend less than you earn? The internet is free. “I need to know about interest rates” chill.
Imagine being under that $25,000 a year bracket. I'm permanently disabled and my income is based on whatever social security I paid in while I was able to work. I was making $72,000 a year before I became disabled at age 37. So, I make about $18,000 a year from that. Yes, I do qualify for Medicare and it is helpful, but I still have to pay a monthly premium out of my social security check and copays. And anything medicare doesn't cover is out of pocket. The whole reason I cannot work is because of my health issues. I _need_ to see doctors and get prescriptions filled every month. But, I am extremely lucky. I inherited a house from my grandmother that is paid for. If I didn't inherit a paid off house, I have no idea how I would survive. And even with not having a mortgage or rent, I still have to pay yearly property taxes, home owners insurance, and maintenance on the house. I pay someone to cut my grass and I have a general contractor that I call if the pump breaks down or the dishwasher stops working. Last year, my septic system needed to be pumped. I am still making payments on that. I'm not sure where I'm going to get the $2200 I'm going to own on property taxes next year. I'm seriously considering renting out my spare room to a stranger. The whole reason I cannot work is my health but it's my health care costs that make me wish I had a job.
have you tried lifting yourself up by your boot straps?
@@yidavv Aw, man. Why didn't I think of that? lol
@@xliquidflames 😄
I live in fear of disability that prevents me from employment, so I sincerely wish you luck, perseverance, and the much needed political change.
I have been blind all my life but pretty able to work.. until I was fired a year ago and had to move down with my parents who now live in a rural-ish area. I've applied for SSDI, but they're getting older and the house isn't paid off.. they're consistently like "it'll be fine"... They don't seem to get it. I am fortunate to have my parents, I know.. but man is it mentally rough.
As a non-American, this video taught me a lot about your society. I never realised that paid leave is a 'benefit'. I assumed it'd be a minimum legislative requirement. I feel very fortunate to live in a country where student loans are interest-free (because they're through the government), some healthcare needs are funded by taxes & every worker is entitled to 4 weeks of paid leave.
where do you live
Which country is that?!
I’m going to guess this person is talking about Australia
@dougmacdougall2097 - you're very close. I'm a New Zealander. I think our employment law is very similar to Australia. I don't know how their student loan system works, though.
Yes tell others to go where you live. We're so glad you are fortunate. The US is full, please go.
Watching this, I'm now realizing how wasteful I am! Like I nearly spent what is considered some these people's monthly food budget at a restaurant this weekend and that wasn't even my first time! 😳 And just earlier today, I was convinced I was poor/struggling. This is madness. Thank you for this video. I'm definitely reconsidering my budget right now. Thank you 🙏🏿
Probably the best and by far one of the most important videos you guys have put out. Thank you to the entire team and the courage to make this!
Courage ???
This topic doesn't take courage to talk about. It's even discussed in public schools.
Correction: It takes courage to talk about this and make the statements that he made in the end (e.g. raising taxes on the rich) At least in the current US political sphere
+
@@batessdd 😂😂😂😂😂
As someone from Atlanta, I can tell you right now you do NOT want to live in the houses you chose for the lower incomes 😅
Agreed. I was going to say… that place chosen is probably a health hazard.
Isn’t that part of the problem tho?
Curious to know why it is a health hazard. Is it industrial area or what?@@michelleivyknudsen
Unfortunately there's no "other choice"
I don't live in Atlanta, but been around the area a lot and was thinking maybe the same.
This was really well done! I like the style of Johnny taking on each persona. Killer job by the editors too!
I don’t know anyone making 100k/year who can reasonably afford a 50k BMW without going over budget.
After this half hour long, important, well researched piece of journalism I still cannot get over the wooden tub. There are wooden bathtubs?! I want one so bad!
My first thought was how do you clean it?😂
@@BallistikKittyme too!!
@@BallistikKitty You don't. You're rich. That's for someone else to figure out.
@@Unbreathlessthat’s so real ! Nice comment.
Sounds like it's going to be a smell problem at some point
People earning $25k or less in a whole year shouldn’t pay taxes at all 😭
They don't. It will be refunded.
@@samueljensen9896 why didnt he include that in the video
Not if it's via 1099's...right?
Yeah, they get some tax breaks.
@@samueljensen9896 Social Security and Medicare taxes are not refunded. George would pay nothing in federal income taxes on his income of $25k. State and local taxes are a question mark. Depends where you life. If George could manage to get some capital gains from stocks (that he bought REALLY cheap and sold high), he would pay NOTHING in taxes on it, up to a total income of $47026.
Samuel Robson Walton's Ferrari 250 GTO costs about $120 Million. His mechanic makes Home visits too.
He pays ZERO in taxes, but abhors having to provide benefits for his employees.
Why doesn’t he pay taxes?
Because politicians are cheap to own
@@agus.lorenzo Cause a lot of his wealth is tied up in stock, they never or rarely sell , instead they take out loans with stock as collateral & live off that. Banks know they're good forit & they can just pay it off via stock. Equally he inherited his wealth so will naturally have countless private wealth that was only taxed once decades ago. If you want something big or fancy the company can buy or pay for it via offshore firms, be it a private jet, a NFL team, a new house, the expenses of your employees/secuity etc. We have same thing in the UK where one of the largest land owners who is nobelty & a lord is worth billions but never pays anything in taxes. Simmilar to the king/queen. It's old wealth, you hang on to it to avoid capital gains tax & inheritance tax is literally only for the upper middle class to pay who don't have lawyers to avoid it.
@@d.b.cooper1 So I guess the interest rate on the loans taken out with stocks used as collateral is cheaper than them having to deal with income tax/capital gains tax?
@ButteredPecan17 exactly. They get insanely low interest rates because for the bank, the loan is not a huge risk - like Johnny said, "they know he's good for it."
Plus, when he goes to pay back the loan, he can just pay it off from his profits on other investments. When you're that next-level wealthy, your money makes you more money (that "passive income" that alpha bro shills love so much) so you want to keep as much of it "working for you" as possible.
So by the end of it, you've "spent" 15 million dollars in living expenses, but you haven't lost a cent of your wealth doing so - and in fact probably grew your pile even bigger in the meantime!
So basically you need $25 million dollars in America to live the life of an upper middle class Indian.
Quality comes into the play, Cars also.
Tbf we also have wealth inequality
Cheap labor and lower overall expenses in India. That's why. I make 120k/year and it's considered solid middle class here in the US. But everytime I visit developing countries, I feel like I live like a king, and I'm basically on par with the upper class locales :/ Wealth inequality is higher in developing countries, sadly.
One of your best and most relatable videos so far. Really gives of vibes of a Tale of Two Cities.
How so? A tale of two cities was about homelessness in London and Paris my bad I was thinking of Down and out in London and Paris by George Orwell
@@gerardhogan8122 I guess it evokes the memory of the beginning "It was the best of times, it was the worst of times" in large quality of life differences dependent on income. The rate of growth of wealth is even more apparent, where it's actually negative for lower income brackets since it's rather easy to fall into debt traps due to random negative events in everyday life. Two people living within 30 minutes of each other in the same city effectively live on different worlds, as it would seem to indicate.
Turning $100 into $110 is work. Turning $100 million into $110 million is inevitable
Higher value investments return more cause companies have more choices with larger sums and they will pay more to get your money. That 100 will easily get 15/20 million return. Can live great life on the returns. Even with 1 million cash invested can still get 100 k a year which is 8500 month for sitting on your ass.
Nope you can get the same 10% return on $100.
@@canada-gl7si where/how?
@@rodrigojds It's pretty simple. the S&P 500 for example. If you don't want only a 10% return annually from the S&P 500, you can invest in BRK and get the same returns that warren buffet gets (Approx. 20% per annum)
@@rodrigojds They are both done the same way, the stock market. The problem is the extra $10 can just pay for your meal, while the extra $10 million can pay for hundreds of peoples whole lives.
An interesting twist on this format might have been to frame it as 4 people in 4 income brackets who are all employed by the top "earner". George is the landscaper at Robert's mansion, Simon is Robert's private driver, Tim is Robert's private doctor, and Noah is Robert's dinner guest or something like that. The trickle down people want to show you how Robert is creating this ecosystem for all the little fish to live in underneath him but the illusion of upward mobility means those little fish never really stand a chance at swimming any higher in the pond.
wow
that's eye opening and gives a completely different perspective to the video
You nailed it. I'm trying to start my own business, but in order to make it real I need capital. I make beyond Tim money, but to make Noah and beyond money, the bank wants me to to use our family home as collateral. I can't risk that no matter how good my start-up is. And before you say "find a private investor!"... 8 out of 10 Angel investing setups are total scams.
Noah could also be the general manager for a subcontractor who services Robert's business, or some other sort of junior business partner.
I was expecting that, but it's good video nonetheless.
A friend of mine just sold his landscape business he started in highschool ... for 1.4 million. Everyone can move up in America, you just have to be smart enough to do it.
People often fail to understand that you can't get rich by just working 9 to 6 jobs. Instead, you should try smart investments like stocks, especially with the help of a good financial advisor. I've made significant gains within a year by investing wisely. It's amazing how much your financial situation can improve when you make your money work for you.
Absolutely, I can vouch for that. I've experienced significant growth in my portfolio through stock investments. The ability to diversify and manage my investments easily has been a game-changer. Plus, the long-term returns have outperformed other investment options I've considered. If you're looking for a flexible and profitable strategy, stocks are definitely worth considering.
A lot of folks downplay the role of advisors 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.
I would like to ask, how did you achieve it? I've been trying to stick with index funds. I feel these new interest rate hikes could crash the economy. I'm looking for a better investing strategy, as I have a lump sum that inflation is steadily eating up.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Judith Lynn Staufer’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Searched the web and saw her profile and accreditations, someone with great experience I must say, thanks!
You missed a trick for the mortgage at the $25 million bracket, which highlights how broken the system is. Because you have so much money, a bank will loan you the $15 million at a low interest rate because they know you're good for the money. You can then use that loan to invest in the stock market, which, even at a low-risk investment strategy, will have a higher return than the bank's interest rate over the time you repay the mortgage. So you make more money and have a $15 million asset when everything is said and done.
That's what Adele did apparently!
Not to mention the appreciation on the house :)
And even in a downturn you are probably hedged and it doesn’t even affect you :P
That's basically what you do with any kind of high net value asset, including stocks. Another thing I learned while workinh in finance is the bank would give basically close to 0% interest loans to high networth individuals as long as they kept a balance in their account (because the bank would turn around and invest that money and give them back some of the earned gains, keep the rest for themselves). Money's funny like that, the more you have the less expensive things actually get ¯\_(ツ)_/¯
But stocks are shit, and no one predicts crashes. 😂😂😂
@@verb0ze oh poor people,,I feel their struggles... actually I WOULD really like to feel that type of struggle too
22:24 “Do I cook? No I do not cook” (dramatic pause) 😂
Goals
The super rich need more time for playing golf... Or tennis.
@@CausticCrator83 For them time is money, so spending money on a chef gives them more time to work and earn money.
@@CausticCrator83 ofcourse, with company executives!
Best moment in this video 😂
And money rain in the back
$2,200 a month for taxes at $100,000 annually is wild.
It's true
I usually get around $300-$500 a check taken out with two checks a month and I make around 60k
I pay about that and maybe a bit more (~2300/mo & ~30%) of my income in Federal+State+Local taxes at a 100k salary. Can confirm it's pretty wild.
26% tax whats wild about that
@@eduard2113 That's literally an entire extra salary for the first guy
As a person with an extremely low budget, I must say that, buying essentials in bulk is KEY, a bag of 10kg of lentils, 10kg of potatoes, 10kgs of rice, but not in the grocery store or the supermarket, you have to search for the distributors, grocery stores charge more for less volume, also knowing how to save in services is also key, using less water, electricity, and gas, also a car is not an option you have to find a way to use only a cheap motorcycle or worst case a bike, but a car is just not worth it if you want to leave that situation with some type of little savings, also if you can get a roommate or roommates you'll be able to save more in order to find another way to make more money. For everyone struggling, I'm sending my best wishes to you
Key tip, public washrooms during daytime. (work, school, gym, etc)
Home at night. Saves water use.
(I use to purposely stay at the library for a few extra hours after work, till dinnertime, use at library, then walk home.
Also, less hair wash days (yes, means more greasy hair sometimes), and or go to the gym.
If you are financially blessed and own ur grandma's house, not watering the lawn during summer at all helps too.
Yep. Working at Kroger, at $15/hr, still has me having nothing for lunch, because the few items I would buy doubled in price, and my breakfast is the $2.10 dozen of leftover donuts whenever I can get them. Which leaves lunchmeat sandwiches for dinner. Makes me feel great looking at our store manager, the guy who makes $200k a year with $32k quarterly bonuses, and nobody knows what he does. He and his managers don't hesitate to punish us for the slightest bit of relaxing on the job, meanwhile they get six figures to stand around on their phones, sit in their office and chat, not follow schedules, screw with and screw up timesheets, and demand workers to work days they said they couldn't.
I'm really sorry and no one should have to live like that, you are worth more.
Well my friend we all start somewhere usually at the bottom of the food chain and at the end of the dwy he is your boss , such a high paying job doesn't come by being a good worker but he probably went to university and got a masters degree or a diploma in business management. We shouldn't be angry with what others are earning they live there lives how they want to we are all entitled to that, don't forget those managers were in your shoes once upon a time they probably got the same treatment maybe they testing you see how you would react, don't react be better make more sales got to university and become thier boss.. I hope this wasn't a harsh thing to say I'd rather not feel sorry for you but uplift you :)
Kroger store manager definitely not making 200k a year😂😂😂😂
Here in Perth Western Australia we have our 3 major shopping centres Coles, Woolworths and IGA. Woolworths ceo alone was making around 8.6mil a year and a store manager would make around 110k per year where as an average employee would make around 56k a year. So what am I trying to say is that we all start somewhere and if you want that luxury lifestyle have to work hard to get it, only 1% of people will be successful most will give up before they even start thats life gets to hard so we switch to what's comfortable for us
@@ArthoireI think that he needs to listen to his boss's do what he's told coz from im reading he's just standard employeeim not saying this in a nasty way either it's just as I stated in my other comments you gotta work hard to get that life and only 1% make it anything is possible tjrough sheer determination be the lappy do whatever they say and you yourself will climb that ladder go to school gets your masters ya know what mean these jobs aren't given lightly but to people who have experience and certificates
They can boss you around coz thier the boss if people don't like it then they can quit thier job but that wouldn't be smart lose your only source of income hard enough finding a new job these days. Anyways back to the point if he's on his breaks then they shouldn't have the right by law to ask him to work thats highly illegal and can be charged coz your entitled to your 2 breaks a dayt if he relaxing while on the clock the they do have the right to give you a hard time coz its like what am I paying you for scenario no boss likes to see workers relaxing while on the clock that's just fact
One main thing I noticed in your video is that all this characters are alone. No parents, no girlfriend/wife, no kids. No family. And they should be included in this study as they affect this characters both positively and negatively
Real life!!! Because we exist in societies, and the pressures abound!!!
I was about to say the same thing. Ive had a kid and in a relationship in the last 3 years and my costs have risen by about 45k a year. Families are expensive, no wonder way less people are having kids
theres no data for that he merely based characters on the data provided
Your right most have family's and that definitely changes the amount very quickly
I am Tired of Life 😢
“And hope that no big maintenance issues arise” Oh but they always do, and at the worst possible time 😭
Yeah, I had to replace parts in my car for 1400... while I was in labor.
Yup, went homeless the other year because of it
I am truly sorry about this...
Thank you
one of your best videos yet man!
it doesn't have that intensity and sense of urgency that most of your videos do,
which are also very good of course.
but this one has a more relaxed approach which can be refreshing at times.
that being said the edit and the care with all the little details is top level as usual.
good job!
bro went from foodstamps to chevron ceo in 30 mins. Thats some serious talent right there !
he was on the grind set XD
And yet his name kept changing with each promotion.
Its a bit weird though. Because it doesnt show the standard of living decay. The 100k guy is like a lower middle class guy in the 80s. And hes the top 10% of earners. The movie vacation has the main character doing better than him. Not only that but hes alone as well. The million dollar guy is more like the 100k guy back then. Its gotten extremely bad period. Like we were past the tipping point in the 90s. People were arguing for $15 mininum wage back then. Most people are living in poverty period. 77% of families need more money just to live.
I make 85k a year in seattle and it's horrible. The median price for a single family home is up to 975,000 and renting a single family home is $3600/month. I take home $4600/month and half of that would still disappear to rent
Same thing here in NJ. Median price for single family home is less but property taxes are some of the worst in the country.
It's generational... if you're already a homeowner, lucky you! The inflated value of your home means you can sell it and buy a new one and probably upgrade. But those entering the market, oh well... you're priced out entirely. Stuck in your 30's, 40's, even 50's with kids living in an apartment that's too small for you even though you're making "good money"
Hallelujah!!! I'm favored and blessed with $60,000 every week! Now I can afford anything and also support the work of God and the church.
You live in Seattle ... that's your first problem. Any Democrat run city is going to be wildly expensive. Someone has to pay for all those BLM murals and pride flags.
@@orion7873 LOL... thanks for this. I need my daily dose of blatant ignorance to laugh at. Of course.
this should be a series comparing people in different countries, it'll be really interesting to see who has the best life in your income bracket
Thank you for making this video. It really hits close to home. As someone who is struggling making about 28k a year, im really scared. I feel like at any moment i can become homeless. I cant even afford to pay my phone bill next month or fix the Air conditioning in my car. Also massively in debt with CCs and student loans. I really hope it makes waves accross our government and politics. Things need to change fast, as everyday i become more and more terrified.
There are two options:
Earn more.
Or Spend Less.
@@FWtravelsyou had it easy grandpa
Have you considered the possibility that your fear is what makes you sink more and more into despair? The cure to fear is courage. Only courage can motivate you to overcome your poverty mindset and use your resources (including intellectual) wisely. There are plenty of rags to riches stories. None of them feature "I get more and more terrified" but rather "i was terrified but I did something about it". All you're doing is watching TH-cam in hopes that someone else will save you.
I make over 200k a year but still driving a 1999 Isuzu with no AC. I pay off my credit cards balance at the end of the month and my student loan within 5 years of graduation. Yet, people making less than 30k a year are spending their money on things they can live without and racking up debts while blaming their society for their self inflicted problems 🤦🏼♂️
@@mercury2cim not no “grandpa” im literally 23, and he is right. Spend less or make more. Crying in ur bathroom abt how the “gov fkd u up” instead of working more and leaening skillsets to get you out of there is your fault. Go make more! Or go spend less
It’s honestly a slap in the face when you really look at the difference in incomes. We slave ourselves for the few that exploit our sufferings
Capitalism in a nutshell...
@@helene8854 imagine if WE organized ourselves and sought justice against the greedy elites maybe Hollywood will make movie about it idk
@@helene8854what's the alternative?
Dumb. Most who are rich started out with low wages. America has best upward mobility of any country. If you work, you can easily rise out of poverty. If you want to game all day and spend your money on sneakers and vape, then you will always be a poor loser.
@@fareshajjar1208 lol bro i work hard not everyone has to be a ceo in this life. It’s just funny how older generations were able to work a trade by a house and raise a family but now my generation can’t do the same.
Bro went from real life to Succession really quickly😂
Lol
Succession is a level above the last one, with net worths in the dozens of billions
😂😂😂
Love this. Thanks you for all your in-depth research.
Just an observation, a trip to the grocery store is never just $100 these days. Closer to $200 in my experience this year.
I live in NYC, and I lived in the $25-$45k income range for most of my 20s. Not an easy task in NYC, especially when you don't have the right work papers. Life was so much more stressful, especially when I dropped into the $25-30k range. Every decision I made related to money was a cause for stress, even trips to the grocery store. Forget eating out, dinners out with friends, the movies. I was stretched so thin all the time, and after a decade, it wore me down so much I'm sure it took years off my life.
Now in my 30s and a permanent resident, I make about $70k a year, and life is so much easier. It's like a giant boulder was taken off my back. I still run a tight budget because I know the hard times are closer than you think, but life literally started to have more color. I can't spend like crazy, of course, but I can now do little things like eat out occasionally, buy my friend a drink, or just get a new pair of shoes.
In other countries it would've been impossible to leave the 25k bracket. Good for you to have the opportunity and incentives to do so
@@dtegg91 I left nyc once I got near the 100k threshold. 50% of my income was going down the drain as the city was decaying around me
Go to a trade school. Plumbers and electricians easily earn 6 figures. People are just lazy these days.
@@noob.168 that's what I did essentially, learned a trade
When I was in my twenties, there were some months where I had an Excel sheet to track expenses, so I knew how much I could spend and not go broke.
Now I finished my studies and that seems like a completely different life to me
I like how you accentuated the ridiculousness of different scenarios without spiraling into judgement. "this is the way it is, and this is what than means."
I think the one thing that works the opposite is Hotels - the more you pay the less you get for free. Holiday inn Express - free buffet every morning. Ritz Carlton - no free buffet, you have to pay for room service, which is astronomical in cost.
@@Synoopy2 sure, but the room service is going to be lobster and steak. Not saying it's a good value, but you're paying for more expensive food than just Belgian waffles and scambled eggs. (although those free continental breakfasts fucking HIT)
This is so depressing. For many years, I have thought, that the U.S. is a paradise for almost everyone. Now, as I delve deeper and deeper the actual, underlying reailty, it scares me. As a European, I wish the every U.S. citizen a better world and a better country (ragarding average life).
There's a lot of poverty in Europe as well, thankfully we have a social security net in most countries, but we still have growing inequality here too. And once you're trapped in social security dependency it's very hard to get out of it.
Thanks for the well wishings. I don’t think any of us are holding our breath waiting for official relief anytime soon though.
You could argue that things are working as designed.
It is a paradise for people who came from a 3rd world country.
@user-kbascd4o24 How does the culture promote infertility? Our culture celebrate parenthood, we spend a lot of budgets on education and social welfare. Problem is inequality when the Rich keeps higher % of GDP there is less money for poor and middleclass to have children so we get negative fertility rate. This is global problem, they have same problem in South Korea. Inequality promotes infertility, not whatever vague cultural thing you are referring too.
@@user-ds8gf3ki2gHe meant that europe is a paradise for the 3rd world.
The problem I see here is that you upgrade your lifestyle big time when the salary increases. In my opinion, I would not upgrade my lifestyle that much and invest the extra money to let it grow. Earning more does not mean spending more.
You do not need to reach 1M salary to start investing in the market.
It would be so cool if he did this as a series for each country. Would love to see the perspective in Canada vs UK vs Australia.
Add Japan to that list and it would be an extremely informative video. Japan's economy was stuck for a few decades and it's different than most other countries at the moment.
One of the best parts about this video is getting to see everyone’s comments on their place on the chart and peer into the accuracy of what JH was talking about
I know this is a serious video but I’m obsessed with Johnny’s rich boy Robert persona, specifically when he remembers that he needs to buy his Italy house so he needs to get something more modest 😂
The funny thing is johnny makes a lot of money on youtube according to socialblade yet criticises his own income bracket.
The Torah's concept of Yovel (Jubilee) offers a wise solution to wealth inequality. Every 50 years, land returns to its original owners, and slaves are freed, preventing wealth from being concentrated in a few hands for too long. This allows society to reset and ensures that everyone has a fair chance, no matter their circumstances.
Yovel reflects the idea that wealth is a gift from God, meant to be shared fairly. In a world where a small percentage holds most of the wealth, this approach could help create more balance and opportunity for all.
Loved this video. I do wish he included a segment in which he added the cost of having kids/costs of having a family, because that’s a huge factor in many Americans day to day.
Good thing hundreds of dollars in repair costs a month was budgeted out for a brand new 50k car you don’t even need!
Kids don't cost all that much as far as buying things... it's the opportunity costs.
Gross: $48,000
Net: $31,000
Savings: $22.38
It's a decent wage by anyone's standards. Problem is housing economy then. Well, Johnny Harris managed to find a crack den in some suburbs for 750 a month, perhaps you could too?
Claim 9 dependants and then just don't file taxes.
gross: 39.600 € pa
net: 27.972 € pa
Savings: ~ 5000 € pa
And that's in a country US citizens call "high tax"
A formally EU buddy I have at work and I figured out the "tax rate" comparison. It's basically the same but the employer takes the healthcare part, property taxes, gas taxes, sales tax. It all adds up over here in the U.S of A to where it's basically the same. We just don't get as much vacation and the health care is bismal for those that make too much to qualify for Medicaid and too little to be with an employer that provides a group funded policy.
Stop spending money on clothes and irrelevant crap. I make a great six figure living and I canceled my Netflix subscription because it went over $14. That’s the difference between those of us with money and those of us without. Decision making is a big deal.
Someone's restaurant bill is entire yearly income of Someone's family.
You see these viral posts of receipts every year from clubs/resturants in London, Monaco, Dubai to Vegas. Truly mind boggling. Even wilder is just how many people follow those insta accounts & suck up to the people.
Someone has to hire George.
idk why but i really like watching you, you have this chill nonchalant vibe without pushing too much content and not funny jokes, keep going just subscribed
“My name is Noah I’m in finance” lol 🤣
Bros building an ark Megayacht
"I'm very important"
Noah....
Seriously tho. This is so bad like wtf? I'm French and earn around €1650 a month and I live rather comfortably and I can put aside 500 to 800 every month. I'm not rich rich but I really am well enough. I have a friend who earns just €200 more than me every month and she has a loan and a house. The difference with the US is astonishing
Try doing that in Paris 😂
@@maximusg88 yeaaah no 😂 I'm better off in a smaller city
Americans also seem to have way more health problems, more environmental pollutants, don't have to spend so much on Doc here in EU due to better standards.
@@hufflepuffjoh 1650 net?
Yeah was thinking the same. I earn basically the same in pre-Belgian-tax-euros as the $40 000 example, yet I can live almost like the $100 000 example here (in a simple apartment though, but in a city centre which means I don't need nor even want a car). Really goes to show how well we have it here in Europe.
I used to sell luxury appliances. Some of my clients had two kitchens in their home. A show kitchen with Sub-Zero/Wolf / Viking / Miele appliances and a "dirty" kitchen in the back that they actually used (typically with higher end appliances like Bosch/KitchenAid). These show kitchens are what you see in these multimillion dollar homes.
Fascinating, as someone who likes to cook, i always thought of a kitchen as a working space, not a status symbol. Were the appliances better in the "dirty" kitchen, or did the clients not know about such lowly matters?
@@andreaslind6338 He says higher end like KitchenAid but I never considered KitchenAid to be higher end than Wolf or Viking.
Probably one kitchen for their cooks and one for their own use, people generally enjoy privacy
Imagine if every rich person in America donated 1% of their wealth every year to poor people
I love how he was getting into character
The 1 million dollar finance bro😆
His revenue from TH-cam is probably around that much tbh
One root cause: Owners are more and more disconnected from workers. The American Dream relied on a low level employee impressing the owner with hard work & intelligence and moving up. Owners had companies to make a living for themselves and their employees (so cared more about them & the working environment). Owners of bad companies were known, so could be bad mouthed and avoided (so they had to treat people well to be sustainable).
Now most can’t tell you who the owners are … it’s a million different share holders. Owners can’t be held accountable bc they hide behind layers of companies and big crowds of shareholders. The actual company leaders are bound to “shareholder value” over all else - including culture & livelihoods of employees. Even if certain shareholders wanted to prioritize employee satisfaction over certain growth, they couldn’t really do anything bc of other shareholders. Now, companies are purely investments and people are widgets.
Genuinely, why would the low or mid level employee break their back to work hard anymore - the upside is capped. True gains are made these days by your connections in the investment world-- a group of people that rarely interact outside their circle & have to even less over time as the wealth gap widens.
Bingo!
Exactamendo
Owners were disconnected from workers back in the 1920s, What you are talking about is unionization. Unionization forced Owners to engage with their workers and be present, not just because workers had a seat at the table but if an owner got complacent, their workers would threaten to unionize. If you want good, high paying jobs back in this country, you need robust and strong unions.
This might explain why US tech companies have few decades shelf life. Atari, IBM, Motorola etc. Now Intel is in decline.
As someone who's not from the US, the problem in the US is that everyone encourage the same huge corporations. Instead of having thousands of small and medium sized businesses that create a lot of jobs in the middle class income, you have fewer businesses that make billions.
Looking at restaurants and grocery stores are a good way of visualizing it.
In France, if you get into a small town, you will see tons of small independant family-owned grocery stores, small family-owned bakers and public markets where farmers sell their food directly to consumers. You will also see tons of small family-owned restaurants
In a small town in the US, you'll find a Walmart and a McDonald's
I pay about $20k+ a year for healthcare including $1k per month premiums, $7k deductible plus co-pays and non-covered medications and expenses. That is not for concierge medical care. I still wait for appointments, get charged for out of network docs, and denied for medications not on the formulary and compounded meds. I still have to fight to get some things covered that are supposed to be covered yet get denied. At this point I can afford it, but it’s a big chunk out of my budget. This is healthcare in America.
In the end, it's more or less the same regardless whether you live in the home of capitalism or a socialist european country. It's just that the socialist citizens don't have to think about paying for the healthcare manually, but pay twice the taxes instead. Give or take.
Been there. I was paying $800/Mo for required insurance for my wife and I (thanks Obamacare, not!) that covered basically one physical a year an almost nothing else. I was bringing home about $2k a month at the time. I was more broke every month. Ends did not meet because of the healthcare costs. Wife was too lazy to work and help. She’s now my ex.
You should get an agent if you don't already have one. They can help you find a better plan.
making 150k/y in Germany as a consultant (~5 years of exp, working 80h/week), meaning ~6800€/m net:
- 1500 rent
- 1000 savings for vacations
- 800 splurging on random things
- 300 food (mostly eat at work which is paid for)
- 200 for other household expenses)
- no car
- company paid transportation
- 1000 savings account
- 2000 investment account
Would be interested in a future version if this video that covers a bracket or two between $100k and $1m, and with a typical family with 2 kids.
That grey area where you earn "too much" to qualify for state aid, but not enough to live, is killer.
I say this as someone who lives in a state where $7.25 is still the minimum wage.
It’s crazy!
It’s like “get 20% discount when spend more than 100$ on electric” and those affordable one are 49,50$ so you’re forced to buy 3 instead of 2 or buy the more expensive one which is 80$ or something.
Do better.
You only get paid 7.25 an hour when you're only worth 7.25 an hour...
So so true!
this video should be more views its too good
This is a great Analysis! $100,000 use to be the ideal income. It’s still a great income but in this economy it’s the equivalent to $65,000/year. A few years ago my employer had to do a cost of living adjustment to our salary. I’m grateful but not all employers can do so.
Not all employers can and often times those that can won’t
Just remember who created the inflation and made your dollars worth far less ... Democrats
Really nice to see Johnny make content other than Geopolitics. Would love to see more content similar to this in the future!
Except this isn't news. I've known about this all my life...
this is literally politics
@@williamyoung9401 but seeing it told again and again in different ways reminds us that this is the reality we’re living in. And hopefully (hopefully) creates momentum for change. Tax the rich.
The funny thing is johnny makes a lot of money on youtube according to socialblade, possibly a million dollars per year yet criticises his own income bracket.
In Croatia if you earn 5000 € a month (1100 is the average) you can practically live the same lifestyle as your 1,000,000 example. And this is crazy for me to think about.
No way. 5k euros will not even cover 2 international trips a year, forget business class
@@gamelover8968 yes it will, i do it as a student on a much lower budget
@@BokaSandro😂😂😂 how life's crazy around the world, if you've never traveled and see different lifestyles , anyway here in Africa most people thrive with 300 dollar a month and it's a decent life so talking about 1millon dollars wooow you're a billionaire in my country's currency 😂
Next month to albania for holidays. hopefully your statement is true
Maybe if you isolate yourself to the local economy. The moment your spendings are based on international prices (eg. Plane tickets), you can no longer spend like the 1m example.
Love this video! Reasons: provides value, interesting,can learn from it,you spent work on (and i can see it),high quality, good character ( and no im not a bot just because i like the video)
The jump from 100K to 1M is wild to me. Should do this for a family of 4
Edit: I also find it interesting that the most replayed spot on this video is at 40K a year
which billionaire/millionaire is having 4 kids?
@@dusk2308 Lol no a family of 4. 2 adults, 2 kids. And i'm sure there are plenty of millionaires with 4 kids.
You add a wife and you better be making double for the same lifestyle. Yes you share a home. But she's gonna spend you down as much as you let her. Yes this means a couple at the 25k bracket needs roommates still. The reality is that both of the couple work and contribute, so you have 2 people making 25k each and you just barely make it.
EDIT: Add a kid and a 25k couple might as well die.
Hallelujah!!! I'm favored and blessed with $60,000 every week! Now I can afford anything and also support the work of God and the church.
@@AnnaMiller-u7q Really? Did you also get scammed by Ana Graciela Blackwelder?
Holy shit, hear me out: I am a 24yr old university student in one of the most expensive cities for students in Germany. I live almost right downtown in a nice 44 sqm/470 sqft apartment with my girlfriend. We each work around 10-15 hours a week. I have a relatively well paying job for a student and with child benefits (we don’t have kids, we still qualify for it ourselves) we have enough money to afford a lifestyle like the 100k example did. Except house and car, because we rent and live in a city with exceptionally good public transit.
Now granted, this is probably not a representation of the average German student because I focus a lot more on making money than on studying, but I’m almost certain that in this city alone more than half of the students can afford a similar lifestyle minus the house and car.
Why are you receiving child benefits? Seems strange unless you're a genius 8 year old at uni 😅
@@seanstewart8942 Child benefits in Germany are paid until you are 25 as long as you are in university or an apprenticeship. As soon as you don't live with your parents anymore they are legally obliged to pass it on to you. It's not heaps, but something like 250€ a month...
And your public transport is phenomenal, so no need to have a car even
You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires.
I pray that anyone who reads this will be successful in life
How
..? Am a newbie in crypto investment, please can you guide me through on how you made profit?
Thanks to Mrs Deborah Davis.
She's a licensed broker here in the states
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸also paid for my son's surgery (Oscar). Glory to God.shalom..😊
I have been in the market since 2022, I have a total of 795 thousand realized with my 65 thousand invested in Bitcoin, ETFs and other dividend income, I am very grateful for all the knowledge and information you gave me.
Truly one of the best videos i have seen recently and im not even from the U.S.
That was the most Mr. Beast opening Johnny has ever done.
Wdym he didn’t groom anyone
not sure wat you mean, i didn't see a single gambling lottery for kids in there
@@slick3996😂😂 loving how the recent allegations completely changed our views on him.
20:44 "I'm Robert. I'm an eccentric boy". That hit me in a way I wasn't expecting
Actually had me mad, ngl.
the mr. beastification of johnny harris
if the algorithm demands, so it is
What does this video have to do with the vapid content that Mr beast churns out exactly?
This comment makes no sense whatsoever
T'as marché sur ma langue😅😅
I thought it was a Mr Beast video
You’re wrong about the taxes on stock compensation. When employee stocks vest they pay income tax just like everyone else. After that if the stock grows then they’d be paying the lower capital gains tax.
"my budget for housing is $854.... I'll think i'll be renting. "
Think again my friend.
So live in car.
Live in a trashcan on a skateboard and save up for a down payment
@@GeoW-c9b right I learned back in 2010 that buying was insanely cheaper than renting even back then in the middle east coast. Couldn't imagine how much rent is now
Thinkin again , guess I'll be homeless.
Roommates.
You missed a major gap in the distance between 100k and 1M that is common in most of the major cities in the US. Also, getting a 50k vehicle on 100k is really really dumb and not common.
Yeah I agree 😂😂😂
I said the same! $100k a year doesn’t buy a luxury BMW AND a luxury condo with $460/montn HOA AND vacation with $300/night hotel and restaurants. That’s a way into lots of debt
Things like BMWs are why so many people who make a good income, still have a low networth.
Right lol. I noticed a lot of the comparison videos involve spending on materialistic things to the absolute extreme.. I make roughly 36k per year after taxes. now while I could have gotten a $250,000 house, a nice car, and other waste of money toys I decided to get a smaller fixer upper house with more property for $120,000 and keep my decade old dodge ram and get a 83 dusty truck top camper for free instead of spending $500 a month on a new one. Now by just doing that I was able to cut my cost of living by 30% of what a lot of people pay.. So now with the 30% of money I've saved over the past 5 years I've been able to dump $25,000 into my house which increased the value 2.5× of what I got it for this year. It's possible to live the American dream by controlling your spending and proper investment of the money saved.
@@buck-mq3qo what city do you live in where you can buy any house for 120k? That's an absurdly low amount compared to where a large percent of America lives.
This was scarily accurate for the 40k and 100k brackets - the mortgage for the 100k was spot on ($2300 before any HOA), and the “can get by but doesn’t really have any extra money” for the $40k
Choices. That 40-100k earner can live in the the same place they did as a student (unless it was their parents basement). There is no rule that says you are entitled to an overpriced house and overpriced car because you earn a certain amount. People have lifestyle creep that advances faster than their earning potential. I have played that game, it is mostly self imposed limitations.
@@Miner-dyne Yea but none of these examples have children. Imagine raising a child in a 1 bdr apartment. I agree it isn't perfect, but it shows what is a reality for many.
You forgot an important aspect of the $25MM, or even the $10MM+ networth individuals. The trick is to buy appreciating assets, and then borrow money secured against those assets, often at lower rates than the growth rate of those assets. That way you can 1) spend future money now, and 2) write off expenses against your loans, and 3) lower taxes since you have a close to 0 net income.