I've worked as a machinist for 31 years now, since I was 18. Not the best pay or benefits. I cracked the $100k mark at 30ish and now sit at 1.3Mil at just under 50 years old. I'll be done working by the time I'm 55-59 1/2 Keep up the savings, and it'll pay off in decades...... Best thing I've ever done.
How to get $10 per day at any age. Quit smoking, quit drinking, shop for cheaper insurance (any type of insurance), cut cable, cut streaming services, shop at Aldi, make your own meals, get a different job, ask for a raise, get a side hustle. Turn down the heat by a degree or two, raise the a/c by a few degrees, pay off debts, buy a older less expensive car that will lower insurance and taxes, stop buying unnecessary stuff, lessen your travel budget (there are many ways to do this). Stop buying meals out, stop getting the daily coffee out. The list goes on and on.
You can spot the doomers by the comments on this video: "BUT $1 MILLION WILL ONLY BE WORTH $250K WHEN YOU'RE 78!" First, these numbers already factor inflation in. Second, what's the alternative? To sit around and leave disaffected comments on youtube? If you want to become a millionaire before your 50s or 60s, start a business. Negotiate your salary. Find a new job. I show you how to do every one of those things at iwt.com/products. But you can't do any of those if you sit around trying to leave "gotcha" comments about inflation (which you're wrong about anyway). I share my material because I believe everyone should live a Rich Life. You can even do it with a low wage! But you have to start to take control of your own finances and not wait for things to change on their own.
I love that: What's the alternative?? I started getting serious about money about 20 years ago. My husband and I only started jointly earning $100k a couple of years ago. We're now jointly a quiet millionaire, with none of our net worth in real estate or cars. This is after annuitizing a chunk of our capital a year ago. He'd fully retired, I'm soft retired. I like my job and the 10-15 hours a week I work gives me mental stimulation, a sense of satisfaction with each project, and extra income. We did nothing flashy or clever. We've used our 403(bs), ROTHs, Traditional ITAs, cd ladder, and savings account. Boring! Boring is excellent.
@@Lipsmackingsaucesbecause they get a paycheck from investing other peoples or organizations money. They get paid well no matter if the investments win or lose.
It took us 35 years to get to 2 million, but we were lucky because our entire family stayed healthy. You should interview a family with medical struggles (i.e. multiple family members with Type 1 diabetes).
he has already interviewed a few couples with medical struggles. one couple the lady had several heart surgeries and the couple thought she was going to die so they spent recklessly then she ended up surviving. its one of my fav episodes
@@lowlowseesee Yeah, I saw that one. They seemed to focus on what they spent in the past on guilt-free spending. This is understandable in that couple's circumstances. A whole family with Type 1 diabetes, a child with a mitochondrial myopathy or an organ transplant patient will have high medical bills for the rest of their lives.
Boy the end of this video was deep. And hit me hard. We just crossed into 7 figures. And i have a great pension comming @60 We were dead broke @44 y/o. We are now 51&52 y/o. My mom passed on December 29th. And my 21 y/o son is having a hard time finding his way. Despite all the help i have tried to give him. Money doesn't change how you feel. Great video
He prob doesn’t want to slave his best years away like you did - 29 year old who’s a corporate slave and already have about 200k net worth. I feel kinda dead inside though so maybe it’ll matter more when I have a few million and don’t have to work.
@@SomeGal I always include my wife. We moved a mountain in 3.5 years. Paying off over 100k. She worked as hard as I did. Now we know we can accomplish anything together.
My coworker put 30% of his income per week and he retired at the age of 52 with a million in his 401k. Some people say that’s not a lot but don’t they have a million. My coworker and his wife worked things out so they both have their own retirement income to retire together
@@hellfire0332maybe he also had money elsewhere or maybe he worked in a field that allows you to tap into retirement earlier, you're a dummy for assuming. Also, he can get a job at 53/54 and access his 401k money using rule of 55. I plan on retiring between 50 and 55. I have savings, 401k, brokerage l, and Roth IRA ...it will work out with planning.
I’m following Ramit’s advice and have been for almost a year, and I can say the overarching theme here is to make those changes in your life that allow you to “live your rich life”. At least for me I was surprised to see how quickly things took flight, automate your finances if you can, check back every once in a while and you’ll be pleasantly surprised
@@ramitsethi how are you? I am curious, when you said save in an investment tool which investment tool are you talking about? Do you have a cheat sheet teaching people where to auto-save money?
@@ramitsethi, for my learning - can you help me understand why you're discouraging dividend investing? For context, I'm a 35yr. Aside for my Roth, I have two portfolios -first one with a one stock strategy(VOO) and second one is with individual legacy dividend yielding companies. I invest twice a month on the dot and only started to invest since 2021.
Close to finishing your book --> set up my ISA, set up my savings goals, set up my billings to be taken out on more or less the same day close to payday, calculated my costs, set up how much I need to set aside for the month & I now feel in control of my money, to the point where I bought a pair of Yeezys yesterday & felt no guilt because I already covered all the other areas of my life because of your system. Thanks Ramit!
I had a lump sum of money sitting in the bank. I was advised by the bank employees to invest it years ago but still didn’t know enough about investing to do anything about it. 10 years later (currently times) I watched your podcast on DOAC and invested it straight after. Best thing I’ve done in my life.
Great vid. Although I didn’t follow this advice until later in life, it’s something I pushed my son on. He’s 30 and has over $300k in retirement, with 80% of it in Roth. He’s won the game but needs patience for that to continue to grow. Ramit and others taught me this important life lesson of “time in the market.”
I don't want to be millionaire at 65. I want to balance my wealth to enjoy life on my 30s-50s as there will be activities that I won't even be able to do when I get to 65 even with all the money in the world. I found out that being debt free is the best way to do this it is a fine line of investing and enjoying the moment.
@@debbielockhart7762what if you are a pilot and you are forced to retire at 65? What if you are laid off from a job and it’s impossible for older people to transition into other careers?
Hey Ramit. Love your content! So in the video, the example used was having an annual salary of $50k to become a millionaire. However, the thumbnail shows a wage of $9/hr which equates to $18,720 annually ($1560/month). Unless someone has absolutely no financial obligations, it's going to be very improbable for someone to invest and build wealth with that income. With $50k/year ($24/hr), it's much more probable to invest the way that was suggested. Salary definitely plays a role on not only how fast someone builds wealth but even if it is possible to do so.
The $9/hr doesn’t remain constant throughout your life. Generally you earn more as you grow older and he mentioned you invest in percentages of your income.
Hey! Could you create some (or more) content specifically for those of us who started later in life and had one or more kids along the way - The “I wish I read your book 20 years ago” crowd? 🙂 Why? Because the “look what happens when you start investing when you’re 20” can be a little depressing. I did get your book, though, and I’m workin’ the program!
Being late to the game simply means you’ll need to invest more to makeup for the time you missed - what’s your magic number each month you need to invest in order to retire? Once you get clear on your number, you won’t compare yourself to all the 20 something’s that started before you
It’s okay to invest until you are 65 and enjoy it then, but I know so many men that didn’t get to enjoy retirement because they passed right before or as soon as they retired. So, enjoy some of your earnings today
My parents did this from a very young age. They're financially free and they've given me and my brother the greatest gift, not having financially support them in their old age. Please consider doing this if you have kids 🙏
The only problem with this is how difficult it’s become to survive on $50,000 in today’s day and age. Almost all apartments in my area are at least $1,500/month, and they require your income to be 3x the rent, which would be an annual income of $54,000. My teaching salary was $49,500, so most complexes would not have me for that reason alone.
I think when people say they want to be a millionaire they misspeak. They really want to be day-to-day wealthy. They want to make a half million per year. A millionaire at 65 isn't that flashy. And its likely going to be a middle flass or less lifestyle.
And have a million dollar nowadays it’s like nothing… a single family in a bad neighborhood here where I live is costing 400k-500k … every month good income and paid off home is the peace that people really want… vacations and fancy stuff is a plus
Ramit I bought your back in 2014 and the second edition too. I blindly put my money in target date funds in roth ira and 401k and works for me. Thank you!
Here in Australia, it's the law for employers to give 11% of your weekly wages in 401k contribution. So, if you earn $2000 before tax, your employer must contribute an extra $220 to your 401k portfolio without wage sacrifice.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
I thought about investing in the real estate market, I heard that people make millions , but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $460,000 but it's hard to bite the bullet and do it. Money is hard to come by
@@Carmenblake524 Yeah exactly, recommends people on TH-cam when it comes to hundreds of thousands or more dollars, of course that person sounds highly like a scam especially from a channel without any content and it's not normal to see people using semicolons in a sentence, that's usually reserved for bots like chatgpt that have rewritten what they need to see because the scammers usually come from third world countries or usually lack education, if they didn't lack education they would know they could earn more money in their life time from not scamming than rely on ripping off old people for petty change, how sad for them. I make hundreds of millions a year leveraging other people working for me in a mutual fund- all legal and every one wins, yet you have scammers out here doing anything for $100 to $1000 to take some ones money without remorse, how terrible and sad is that, they don't know how to make real money so they take crumbs off other misfortunate people.
i’m 28, and only in the past 2yrs have i been in a position to start saving and investing. i don’t currently make a lot, but have been working from home 100% since 2020 and have had several contract jobs, and a short stint full time at a company before i was laid off earlier this year. income has been unstable, but i’ve been able to dump most of what i’ve made into a HYSA and an IRA that i contribute towards monthly (and in bigger chunks when possible). $50 a week is going to my HYSA for my emergency fund, $50 to the investment account, auto-deposited/divided from my paychecks. i’m hoping to get another better job soon, hopefully full time and permanent with benefits again so i can REALLY save again. i’m childfree and have very little debt (student loans im going to pay off or may get forgiven), low cost of living too. i think i’ll be in a good position w/in 5 years and im looking forward to abt & every opportunity! ❤
This videos gets me everytime. Invest and wait 30 years to become a millionaire. No mention of starting a business which can compound your income and invest
While watching the series on Netflix, I wrote out a budget and I plan to pay off close to 4 grand in credit cards within 90 days. I plan to pay off one on Friday.
Great advice Ramit. I think most of the world would like to think retiring with a lot of money requires some super secret knowledge that they don’t know or don’t have access to, and the reality is we all control our own visions and behaviors. You really push us to empower ourselves and believe in the reality we’d like to create and that’s why I love this channel ❤ in a world full of blaming others, accountability is refreshing
I love lattes. But I also focus on investing! lattes are my only treat really. Im an older invester 52. Been through 2 divorces so got a late start investing. But im really enjoying it and learning about it. I just hope I have enough when im ready to retire. Enjoyed watching you today! blessings
Mind if I ask when you got started? I'm 41 and didn't start making decent money until 38 and only in the last year or two found Ramits book and started my journey towards figuring out my finances. I'm hopeful if I focus and invest as much as possible I can POSSIBLY retire at 60 🤞🏻
I'm 42 with $300k in my 401k and a stock and crypto portfolio worth a combined $850k. I started investing just 2 years ago after working for 15years and having just short of 70k in savings. I'm still with the same company but my decision to invest has made the difference for me and my family. Investing is your best friend. The sooner you start, the better off you are.
I got laid off my job and started investing in February, invested 34k in the market and my portfolio is currently worth slightly over 97k. That's more than I make in a year from my job. I’m glad I didn’t shy away from investing
Well first off don’t settle for a low income. Learn a valuable skill or be willing to do jobs others won’t. Make more money for less time. Then it’s simple. Live below your means, save, invest and be frugal. It’s not complicated but it’s also not easy. Don’t worry about some arbitrary goal like being a millionaire.
Actually, using a financial advisor can be incredibly beneficial. They can help you create a personalized financial plan tailored to your goals and risk tolerance and also provide valuable insights and advice on investment strategies, retirement planning, and tax optimization.
My colleagues had a good laugh at me when I told them I started my journey with $5k capital and how I accumulated over 5 figures within a span of 7 months. They never believed me until I pulled out my P&L.
I was skeptical at first, but after working with a financial advisor (Herman Jonas), I’ve seen significant improvements in my financial situation. He’s helped me make better investment decisions and saved me money in the long run.
Love your channel and I listen to your podcast every week! I hate to sound cliché but I wish I would have found you 20 years ago! Could you please do a "catch up" video for those of us that are older and didn't save in our 20s and 30s?
A most learn money habit is to save/invest more than you spent/ earn .Make 250k a year live a 250k lifestyle =poor make 15k a year safe 7.5k a year =road to financial freedom. Thanks a bunch for another great video Ramit.
I’m in mid 50’s and just watched Netflix show, have your book. My question is could you show something with someone in this situation? I have a mortgage, mortgage under $800.00/months. How do I start?? I have a small 401k and owe less than 100,000 on my home…
I love the swipes against “influencers who live in the middle of nowhere” and “you want to be entertained? Get a dog” 😂😂 What a great way to start my day.
solid video sir. i agree with everything in the video, but i think you miss a key way to leapfrog years ahead & increase your savings rate. if/when you get some extra money like the stimulus money, tax returns, a bonus from work, etc. you should invest 100% of it and jump ahead of your savings rate by a significant amount(for a low earner this can be huge!). example, if you invest $400 a month then get a $4k bonus it is a ten month jump that compounds and that one move makes your yearly contribution double.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@Ingridlourd02 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
three tips on how to become a millionaire on a low salary: Budget Wisely: Prioritize saving and invest any extra income wisely. Cut unnecessary expenses and live below your means. Consistently saving even small amounts can add up over time. Increase Income Streams: Look for opportunities to boost your income outside of your primary job. This could include freelancing, starting a side business, or investing in passive income streams like real estate or stocks. Continuous Learning: Invest in your education and skills development to increase your earning potential. Take advantage of free or low-cost resources such as online courses, workshops, and networking opportunities to expand your knowledge and expertise.
I love your honesty and sage advice. You speak the truth. There are no get rich quick schemes unless you inherit a lot of money from family or become a celebrity somehow. Wealth building occurs slowly over time. Thank you for keeping it real, and your advice is so real and awesome, especially for those young people who think they can beat the market.
My good friend Louis, who lived up to 99 years old , lived out of his dividend investments that paid him 90K a year, he died with about 3M in the bank 😮
50k a year after taxes is 40k a year. Minus 7k in investing is 33k a year. Childcare is 14k a year leaving 19k a year. Rent is 13 k a year leaving 9k a year, food is more or less 7000 a year. Leaving 2k, health insurance is 2,400 per year. Leaving -$400 for utilities, gas, clothing, insurance, msc repairs emergencies and savings.
@@sabrinachambers8353 I have them for my HSA, they're good. They have a more advanced interface and better options. I just like Vanguard because it's not owned by a private family, like Fidelity is. But you can't go wrong with either one of them.
I simply looked at my credit card and saw the spending summary and saw how much I was spending on non essentials. It blew my mind! So now I do a no buy month, I don’t spend money on anything other than food, bills and rent. Thus far I’m averaging $900 a month saving. I also paid off my truck that I bought 9 months ago in order to save $4500 in interest payments. So now I have that money plus the monthly payment to invest. It also helps to have a high interest savings account to grow my money for my Roth that I max out every year and I opened up a brokerage account that I can add money to every month. Hoping to have at least 1M when I retire in 15 yrs
I have to say I don’t really watch these type of videos from anyone on TH-cam but this guy spoke facts and I understood everything with him on the screen and with the visuals thank you for these videos man keep up the great work you earned the new subscriber and I know a good amount of investing thanks to my dad so I was able to agree with a lot of things in this video and you helped me a lot as well!
Being a millionaire has been a goal of mine (not a dream) since I was in college I keep hitting roadblocks but like that feeling on the tip your tongue I feel like I'm inching closer to figuring out how I can get there successfully. For me though I don't want to enjoy my riches when I'm old I want to travel and be with my family more while I'm young and can still do things.
53 and my "buying power"hasn't changed much if at all since my early 30s. And at $65k a year there's not a ton of light at the end of the tunnel. Doing what I can.
I like that you put the return assumptions and rate assumptions. And I liked that you used a more conservative percentage. At the start of my career, I looked at the lifetime returns of the lifecycle funds offered at my university. None of them reached 7%, and I’m pretty sure those were the nominal returns, not inflation adjusted. Lifecycle funds are almost never all equities, especially in the latter half of the worker’s tenure and the market average people tend to refer to is stock market, not bond market. Long story short, I ultimately decided to only leave a portion in my lifecycle and put the other portion towards something more representative of the stock market.
"Investing is boring." I wish more financial types would say this. It's one of the reasons I haven't finished any investing or finance books (I've started plenty). Investing really is like watching paint dry.
Good work Ramit. I have been watching your videos lately because I like the idea of creating that guilt free spending room in my budget. I see when you are recommending set percentages for savings, fixed, investment etc but it is based on GROSS income. For someone like me taxes can be about 22-32% of my gross. How does that affect your recommendations?
Have your book downloaded audible. Must say, your candid, honest and fun approach to finance, makes this book the most accesible, easy follow educational piece in a long time. ❤I’m making mandatory to all my staff, teams and closest friends to read or listen to it.
Ummm..... Disagree. Choose who you marry and have kids with wisely. Be on the same page with finances... Shouldn't be a problem. I'm assuming these comments and likes are from very young people who have zero clue about marriage or kids. I am a mom I am 40... We live on a modest lower middle class income I stay home with kids... We have enough and it is working and has been for years.
@@mmd2035 - I don't know too many people living in poverty - jumping for joy! - or - parents arriving at home feeling fully exhausted after a stress filled day at their work.. / Staying single saved my life 😌
Before following your advice, I was saving too much, not spending some of my earnings on what I enjoy and barely investing. Changing my financial behavior really helped motivate me, increased my happiness and also made me not scared to invest a certain percentage each paycheck. The sad part is, I was laid off 6 months ago and am having a nightmare finding a new job in my field, but one thing is forsure, I look forward to balancing my finances again when I finally get a job again. In the meantime, any financial advice for those of us facing layoffs? Especially when unemployment benefits runs out.
If you're young, you have time on your side. Live at mom and pop to save on rent and follow this guy's advice. I wish I had this information when I was 18. I didn't know I would be farther ahead if I immediately joined the workforce instead of struggling my young adult life in college and trying to figure out what to do with my life. Fuck. I feel so frustrated. I could have $500k in investments with a low stress job working 40hrs a week instead of working 50 hrs a week trying to play catch up.
So true. My wife and I both have 4 year degrees yet worked jobs that didn't require a degree. We are retired now and did a good job saving but didn't start saving until age 31. We got lucky. Starting early is the key.
For those that have accumulated enough money to almost retire, but out of work and need health insurance, you just need to make 15k a year to be eligible. If you can do that, your health insurance will be mostly subsidized by ACA. You can get a low paying job but still have insurance.
Big ups to everyone working effortlessly trying to earn a living while building wealth. My husband and I we are both retired with over $2m in net worth and all paid off debts. Living smart and frugal with our money, made it possible for us this early even till now we earn passively with our asset coach Sam Deymon Adapt to a lifestyle be thrifty, set a budget, save money and build more streams.
Can be anything from a 401k(s) with your company, IRA, personal stock brokerage account, or other accounts. Prefer that you go for Roth 401k if available and Roth IRA so that money grows and can be withdrawn at eligible ages tax free.
AMX300K has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures.
I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.
It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years
I've never heard any even remotely informed dividend investor suggest that they'll average "20-25%" returns. Idk what his problem with dividends is, but it wasn't articulated in a way that makes any sense here, not to mention the indexes he recommends contain tons of dividend stocks and pay a dividend themselves.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial expertise. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
Judith B Richards is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
*The problem today is most people always think that, you only need a good job to get rich... These millionaires are operating on a whole other playbook that many don't know exists*
How to learn where to invest if I am in Canada? Is your book relatable to other countries? I wish I have seen your videos years ago. Now at late 40’s and recent disability from back injury. I won’t give up! And even if it is little by little I want to invest for my senior years! Do yo have any shows with people on disability income? Thank you for showing light and guidance to us who did not grow up with financial education. It is never late to learn.
When I first started investing at 22, I was saving 400 a month. Now, it's much more due to my income increasing considerably, so at 40 I have a million. And I had a setback at 30, I had to pay 40k cash loss to finalize the sale of a house due to a divorce. Anyhow, it works.
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
Also, no matter the age, you should pay a credit card off every month and maintain contributions to an emergency fund. If you can't pay the balance, then you can't afford some of the things that were purchased and need to switch to paying with debit/cash until the balance is gone completely and you have an emergency fund growing. You can then use the credit card for only one or two planned purchases a month (like a grocery trip or filling up with gas once a month) until you are comfortable with the practice of paying the balance in full each month. If you find yourself with debt again, you might just need to stick to debit, which is fine. Points are really only good if you don't pay interest. Hope that helps for now ✊
I’m going to piggyback off what the person above me said: Rule #1 Before shopping around for cards, try opening a starter card with your current bank/credit union if you have one. Why? The APR rates are typically lower and you already have the preexisting relationship to get instantly approved for a credit line. Rule #2 Before even touching that card for any purchases, calculate 30% of your credit limit. Why? Because this is the exact amount you need to keep your card usage under so you don’t accidentally max out under the common misconception that credit cards are “emergency money.” You should not be using anything over 30% of your credit card’s limit. Rule #4 Again before touching your card, calculate 1%, 2% and 3% of your credit limit. Why? Just in case you’re ever short on being able to pay your balance in full, you should aim to pay down the card to at least one of these numbers before your statement close date. Rule #5 KNOW YOUR STATEMENT CLOSE AND DUE DATES ‼️ Think of your statement close as your deadline before the credit company snitches on you about what you spent. Ideally, you’ll want them to report that you used a healthy amount of your limit (anything under 7%), so the best thing to do is pay your balance completely off before the DUE DATE. The Due Date only comes into play if you decided to carry a balance over. That is the day you have to pay the balance you carried before any interest penalties are triggered. These dates are very important because you want to limit your card to at least 1 or 2 purchases and leave a week of breathing room to pay your balance off. Rule #6 Don’t get roped into gamifying debt by hustling for rewards points. Keep your card simple until you’re comfortable enough to handle doing that. It’s nice to benefit from the rewards, but remember they’re typically pennies on the dollar and the overall goal with credit is to establish a payment history. Don’t make your credit journey too complicated. Best advice for establishing a payment history: Use your smallest bill/regular monthly purchase and put it on the card if it’s billed before your statement close date. Pay it off. Good luck ☺️
Wow , thank you! Honestly what stops me from investing is the lack of trust I have . I’m scared to do the wrong thing . The invest in the wrong thing. Do you offer coaching at all?
Since I started to dig into this topic (around 04) years ago, I always try to talk to people about investing. 90% of them don't invest and worst than that, they don't want to hear about it! They either talk back as if this is a bad idea and pull ideas out of their ass to "explain" why it's not good or they treat me as if I'm trying to bring them into some sort of pyramid scheme and they slowly move away from me by changing the topic. It's kind of frustrating and I'm starting to not give a fuck about others anymore.
Does it make sense to start investing at age 52? I feel like I've missed the boat. Always been too scared that the money would disappear. Also, I live on my own and need savings in case something happens (I can't fall back on anyone else and don't use credit cards). I'm in the UK and have no idea what would be a good (low risk) way to invest.
Not everyone gets a pension. So having $1Mil at 65 the. You can retire and live off of your investments. My Dad is living off a pension and social security and he’s constantly saying he doesn’t have enough money. He’s 78.
You need to have a budget. My husband and I save save and save now we are retired before 60 and live comfortably. We put our children through colleges 5 and 8 years with debt free. We are fortunately ones. But have a BUDGET is the key.
@@ezzy4407 Yeah the creator is busy trying to tell people to apply rather than being honest that the older they are the worst it will likely end up being.
Don’t think of it like that. It’s like here’s a little something on the side to MAKE SURE if my stuff didn’t work, at least I tucked away this 💰🤑 cause trust me no one does it. And if you do you get to actually LIVE again
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I've worked as a machinist for 31 years now, since I was 18. Not the best pay or benefits.
I cracked the $100k mark at 30ish and now sit at 1.3Mil at just under 50 years old.
I'll be done working by the time I'm 55-59 1/2
Keep up the savings, and it'll pay off in decades...... Best thing I've ever done.
What’s a machinist
@@jayislander A metalworker, using machines to produce products.
I make medical devices.
@@devilmonkey427 oh okay sounds like something that would pay good but you said not the best pay . Can I ask where you from?
@@jayislander Midwest.
There are better paying jobs out there. I wouldn't recommend working as a machinist.
@@devilmonkey427 well I’m only 22 really just need a job paying alright salary .
How to get $10 per day at any age. Quit smoking, quit drinking, shop for cheaper insurance (any type of insurance), cut cable, cut streaming services, shop at Aldi, make your own meals, get a different job, ask for a raise, get a side hustle. Turn down the heat by a degree or two, raise the a/c by a few degrees, pay off debts, buy a older less expensive car that will lower insurance and taxes, stop buying unnecessary stuff, lessen your travel budget (there are many ways to do this). Stop buying meals out, stop getting the daily coffee out. The list goes on and on.
This should be pinned
Thank you
Ridiculous 😂😂😂.......
Completely agreed, 1₹ saved is one ₹ Rupee earned
This will get much more than $10/day
You can spot the doomers by the comments on this video: "BUT $1 MILLION WILL ONLY BE WORTH $250K WHEN YOU'RE 78!" First, these numbers already factor inflation in. Second, what's the alternative? To sit around and leave disaffected comments on youtube? If you want to become a millionaire before your 50s or 60s, start a business. Negotiate your salary. Find a new job. I show you how to do every one of those things at iwt.com/products. But you can't do any of those if you sit around trying to leave "gotcha" comments about inflation (which you're wrong about anyway). I share my material because I believe everyone should live a Rich Life. You can even do it with a low wage! But you have to start to take control of your own finances and not wait for things to change on their own.
I love that: What's the alternative??
I started getting serious about money about 20 years ago. My husband and I only started jointly earning $100k a couple of years ago. We're now jointly a quiet millionaire, with none of our net worth in real estate or cars. This is after annuitizing a chunk of our capital a year ago. He'd fully retired, I'm soft retired. I like my job and the 10-15 hours a week I work gives me mental stimulation, a sense of satisfaction with each project, and extra income.
We did nothing flashy or clever. We've used our 403(bs), ROTHs, Traditional ITAs, cd ladder, and savings account. Boring! Boring is excellent.
I would like you to address the very misleading thumbnail which is VASTLY different numbers than used as an example. Sketchy.
Good stuff Ramit. Some people just have to be doomers I guess. Can’t is their favorite word
I love this. Agency is the most important factor not anything going on economically or environmentally
I'm a have to start after 60, bcuz I'm just now learning this new stuff and resolving my debt. 😊 Starting a business will be my primary method.
"Investing is boring" is single handedly the most important investing advice I could've gotten.
people go into investing trading bc emotionally they dont understand how markets work. investing is literally set and forget.
@@djjoshski if that’s the case why are so many investors rich?
@@Lipsmackingsaucesbecause they get a paycheck from investing other peoples or organizations money. They get paid well no matter if the investments win or lose.
@@carlr458 that’s interesting 🧐
lol facts. I have a friend at work who keeps tampering with his stocks. I am trying to get him to stop doin that shit.
It took us 35 years to get to 2 million, but we were lucky because our entire family stayed healthy. You should interview a family with medical struggles (i.e. multiple family members with Type 1 diabetes).
only a problem when you are in the US... if you are in every other country with good healthcare type 1 diabetes ain't a money problem....
he has already interviewed a few couples with medical struggles. one couple the lady had several heart surgeries and the couple thought she was going to die so they spent recklessly then she ended up surviving. its one of my fav episodes
@@lowlowseesee Yeah, I saw that one. They seemed to focus on what they spent in the past on guilt-free spending. This is understandable in that couple's circumstances. A whole family with Type 1 diabetes, a child with a mitochondrial myopathy or an organ transplant patient will have high medical bills for the rest of their lives.
How did you do it?
Fun fact: muscle building reverses diabetes!
Boy the end of this video was deep. And hit me hard. We just crossed into 7 figures. And i have a great pension comming @60 We were dead broke @44 y/o. We are now 51&52 y/o. My mom passed on December 29th. And my 21 y/o son is having a hard time finding his way. Despite all the help i have tried to give him. Money doesn't change how you feel. Great video
He prob doesn’t want to slave his best years away like you did - 29 year old who’s a corporate slave and already have about 200k net worth. I feel kinda dead inside though so maybe it’ll matter more when I have a few million and don’t have to work.
Key word you used is "we". You didn't do it alone, so you don't get to gloat. It wasn't all your money.
@@SomeGal I always include my wife. We moved a mountain in 3.5 years. Paying off over 100k. She worked as hard as I did. Now we know we can accomplish anything together.
How you did it?
@@SomeGalhe didn't even say he did it all by himself. You comment just seems like you are correcting him?
My coworker put 30% of his income per week and he retired at the age of 52 with a million in his 401k. Some people say that’s not a lot but don’t they have a million. My coworker and his wife worked things out so they both have their own retirement income to retire together
Anyone who says that's not a lot isn't worth listening to.
7% is 70k. On million if you put it in stock real estate business at a point you don't use the million
How did he retire at 52 off a 401(k)? You can't withdraw from those until 59 and 1/2 without penalty and fees. He's a dummy if he did that.
@@hellfire0332that's not 100% true.... There is a way around paying the penalty...SEPP for one
@@hellfire0332maybe he also had money elsewhere or maybe he worked in a field that allows you to tap into retirement earlier, you're a dummy for assuming. Also, he can get a job at 53/54 and access his 401k money using rule of 55. I plan on retiring between 50 and 55. I have savings, 401k, brokerage l, and Roth IRA ...it will work out with planning.
I’m following Ramit’s advice and have been for almost a year, and I can say the overarching theme here is to make those changes in your life that allow you to “live your rich life”. At least for me I was surprised to see how quickly things took flight, automate your finances if you can, check back every once in a while and you’ll be pleasantly surprised
Yes! Great work
@@ramitsethi how are you? I am curious, when you said save in an investment tool which investment tool are you talking about? Do you have a cheat sheet teaching people where to auto-save money?
It is not relevenat beyond USA
@@MrAllywood79foreigners can invest in the US stock market.
@@ramitsethi, for my learning - can you help me understand why you're discouraging dividend investing? For context, I'm a 35yr. Aside for my Roth, I have two portfolios -first one with a one stock strategy(VOO) and second one is with individual legacy dividend yielding companies.
I invest twice a month on the dot and only started to invest since 2021.
Close to finishing your book --> set up my ISA, set up my savings goals, set up my billings to be taken out on more or less the same day close to payday, calculated my costs, set up how much I need to set aside for the month & I now feel in control of my money, to the point where I bought a pair of Yeezys yesterday & felt no guilt because I already covered all the other areas of my life because of your system. Thanks Ramit!
I had a lump sum of money sitting in the bank. I was advised by the bank employees to invest it years ago but still didn’t know enough about investing to do anything about it. 10 years later (currently times) I watched your podcast on DOAC and invested it straight after. Best thing I’ve done in my life.
What is the podcast you watched?
th-cam.com/video/ORqd9QAC8OY/w-d-xo.htmlsi=1Z7cnBYvlgfPsKFV
@@rakion226 th-cam.com/video/ORqd9QAC8OY/w-d-xo.htmlsi=jW1fChO06qOFbMw1
This is what i need to do😢😢😢!
@@rakion226 Diary of a CEO. It's on TH-cam
Great vid. Although I didn’t follow this advice until later in life, it’s something I pushed my son on. He’s 30 and has over $300k in retirement, with 80% of it in Roth. He’s won the game but needs patience for that to continue to grow. Ramit and others taught me this important life lesson of “time in the market.”
Thank you for this!
I don't want to be millionaire at 65. I want to balance my wealth to enjoy life on my 30s-50s as there will be activities that I won't even be able to do when I get to 65 even with all the money in the world. I found out that being debt free is the best way to do this it is a fine line of investing and enjoying the moment.
I also would like to be able to enjoy my 30s and 40s… but what will happen if I get to retire when I’m old and I don’t have enough money? 😢
65 is the new 45. You should be able to do everything (unless you are a hard-core drinker/smoker or have some serious health condition).
@@debbielockhart7762what if you are a pilot and you are forced to retire at 65? What if you are laid off from a job and it’s impossible for older people to transition into other careers?
Or you want to move to charity work where the pay is awful, but you are doing something important?
Having money gives you options.
Hey Ramit. Love your content!
So in the video, the example used was having an annual salary of $50k to become a millionaire. However, the thumbnail shows a wage of $9/hr which equates to $18,720 annually ($1560/month). Unless someone has absolutely no financial obligations, it's going to be very improbable for someone to invest and build wealth with that income. With $50k/year ($24/hr), it's much more probable to invest the way that was suggested. Salary definitely plays a role on not only how fast someone builds wealth but even if it is possible to do so.
What was he thinking putting that up?
Wow never thought of that....good catch! Maybe he is assuming married couple?
@AlyssaWolverton that's still only 37K
Try to generate side income to increase your annual income still you can invest and make half a million 🥸
The $9/hr doesn’t remain constant throughout your life. Generally you earn more as you grow older and he mentioned you invest in percentages of your income.
Ramit is the realest tbh. I want to buy him all the appetizers in the world. ❤
😂 That was a good one! I love him too! Lucky wife. ❤
Love this
Hey! Could you create some (or more) content specifically for those of us who started later in life and had one or more kids along the way - The “I wish I read your book 20 years ago” crowd? 🙂 Why? Because the “look what happens when you start investing when you’re 20” can be a little depressing. I did get your book, though, and I’m workin’ the program!
This is us too. The answer is "go hard with monthly investments for the next 10-20 years." Like in the $4000-5000/month range.
You might like the “Catching up to FI” podcast!
Being late to the game simply means you’ll need to invest more to makeup for the time you missed - what’s your magic number each month you need to invest in order to retire? Once you get clear on your number, you won’t compare yourself to all the 20 something’s that started before you
I am also late to it, and plan to invest about $60k per year for the next 10 years. I will also have maximum OAS and CPP (Canada's pension programs).
It’s okay to invest until you are 65 and enjoy it then, but I know so many men that didn’t get to enjoy retirement because they passed right before or as soon as they retired. So, enjoy some of your earnings today
My parents did this from a very young age. They're financially free and they've given me and my brother the greatest gift, not having financially support them in their old age.
Please consider doing this if you have kids 🙏
🤣Sorry..... But I miss read it and thought you typed "My parents *died* from a very young age"
I was like.... WOW. That's harsh.
🤣🤣🤪🤪
The only problem with this is how difficult it’s become to survive on $50,000 in today’s day and age. Almost all apartments in my area are at least $1,500/month, and they require your income to be 3x the rent, which would be an annual income of $54,000. My teaching salary was $49,500, so most complexes would not have me for that reason alone.
I think when people say they want to be a millionaire they misspeak. They really want to be day-to-day wealthy. They want to make a half million per year.
A millionaire at 65 isn't that flashy. And its likely going to be a middle flass or less lifestyle.
They want to spend like a millionaire. To get to a million, you need to save like a millionaire, not spend like one
And have a million dollar nowadays it’s like nothing… a single family in a bad neighborhood here where I live is costing 400k-500k … every month good income and paid off home is the peace that people really want… vacations and fancy stuff is a plus
@@FIREownyourtimeand if you spend you will become poor again
I'd rather have 5 million dollars at 30 then 300 million dollars at 85. Just saying........
Ramit I bought your back in 2014 and the second edition too. I blindly put my money in target date funds in roth ira and 401k and works for me. Thank you!
Same, my money grew after reading his book
Here in Australia, it's the law for employers to give 11% of your weekly wages in 401k contribution. So, if you earn $2000 before tax, your employer must contribute an extra $220 to your 401k portfolio without wage sacrifice.
On July 1st 2024 it will go up to 12%
@DavidWillanski it's actually going up by 0.5% this year and again 0.5% next year.
@@helloman121220 I guess all today's news reports on the changes to paid parental leave got it wrong then
We have something similar here in Denmark. I contribute 6% and employer 12%.
“Real investment is like watching paint dry” 💪🏿 couldn’t have said it any better
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
I thought about investing in the real estate market, I heard that people make millions , but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $460,000 but it's hard to bite the bullet and do it. Money is hard to come by
Fantastic! Can you share more details?
@@dawsondanny990u sound like a bot
@@Carmenblake524 Yeah exactly, recommends people on TH-cam when it comes to hundreds of thousands or more dollars, of course that person sounds highly like a scam especially from a channel without any content and it's not normal to see people using semicolons in a sentence, that's usually reserved for bots like chatgpt that have rewritten what they need to see because the scammers usually come from third world countries or usually lack education, if they didn't lack education they would know they could earn more money in their life time from not scamming than rely on ripping off old people for petty change, how sad for them.
I make hundreds of millions a year leveraging other people working for me in a mutual fund- all legal and every one wins, yet you have scammers out here doing anything for $100 to $1000 to take some ones money without remorse, how terrible and sad is that, they don't know how to make real money so they take crumbs off other misfortunate people.
BTC
i’m 28, and only in the past 2yrs have i been in a position to start saving and investing. i don’t currently make a lot, but have been working from home 100% since 2020 and have had several contract jobs, and a short stint full time at a company before i was laid off earlier this year. income has been unstable, but i’ve been able to dump most of what i’ve made into a HYSA and an IRA that i contribute towards monthly (and in bigger chunks when possible).
$50 a week is going to my HYSA for my emergency fund, $50 to the investment account, auto-deposited/divided from my paychecks. i’m hoping to get another better job soon, hopefully full time and permanent with benefits again so i can REALLY save again. i’m childfree and have very little debt (student loans im going to pay off or may get forgiven), low cost of living too. i think i’ll be in a good position w/in 5 years and im looking forward to abt & every opportunity! ❤
Good luck with your journey!
Keep it up!
This videos gets me everytime. Invest and wait 30 years to become a millionaire. No mention of starting a business which can compound your income and invest
What happens at 4:02
While watching the series on Netflix, I wrote out a budget and I plan to pay off close to 4 grand in credit cards within 90 days. I plan to pay off one on Friday.
🎉🎉🎉 keep it up!
@@snowjae9380 thank you!
Great advice Ramit. I think most of the world would like to think retiring with a lot of money requires some super secret knowledge that they don’t know or don’t have access to, and the reality is we all control our own visions and behaviors. You really push us to empower ourselves and believe in the reality we’d like to create and that’s why I love this channel ❤ in a world full of blaming others, accountability is refreshing
I love lattes. But I also focus on investing! lattes are my only treat really. Im an older invester 52. Been through 2 divorces so got a late start investing. But im really enjoying it and learning about it. I just hope I have enough when im ready to retire. Enjoyed watching you today! blessings
Mind if I ask when you got started? I'm 41 and didn't start making decent money until 38 and only in the last year or two found Ramits book and started my journey towards figuring out my finances.
I'm hopeful if I focus and invest as much as possible I can POSSIBLY retire at 60 🤞🏻
I'm 42 with $300k in my 401k and a stock and crypto portfolio worth a combined $850k. I started investing just 2 years ago after working for 15years and having just short of 70k in savings. I'm still with the same company but my decision to invest has made the difference for me and my family. Investing is your best friend. The sooner you start, the better off you are.
You could retire now If you moved to a
cheaper country. Good job.
It’s scary how this is the life of an average American. Years of working and very little or nothing to show for it.
Living from paycheck to paycheck is no way to live, Was stuck in the rat race for a long time, been there, and investing will always be better.
The importance of investing can never be overestimated.
I got laid off my job and started investing in February, invested 34k in the market and my portfolio is currently worth slightly over 97k. That's more than I make in a year from my job. I’m glad I didn’t shy away from investing
Well first off don’t settle for a low income. Learn a valuable skill or be willing to do jobs others won’t. Make more money for less time. Then it’s simple. Live below your means, save, invest and be frugal. It’s not complicated but it’s also not easy. Don’t worry about some arbitrary goal like being a millionaire.
I've been thinking about whether I should hire a financial advisor. Are there any real benefits to it, or is it just an added expense?
Actually, using a financial advisor can be incredibly beneficial. They can help you create a personalized financial plan tailored to your goals and risk tolerance and also provide valuable insights and advice on investment strategies, retirement planning, and tax optimization.
Yes it can be beneficial. Just shop around for the lowest fee. I would do vanguard or fidelity. Avoid all other companies especially Primerica.
@@Rmorales799
How do I go about finding one since the finance sector is a huge mess with so many charlatans?
My colleagues had a good laugh at me when I told them I started my journey with $5k capital and how I accumulated over 5 figures within a span of 7 months. They never believed me until I pulled out my P&L.
I was skeptical at first, but after working with a financial advisor (Herman Jonas), I’ve seen significant improvements in my financial situation. He’s helped me make better investment decisions and saved me money in the long run.
Love your channel and I listen to your podcast every week! I hate to sound cliché but I wish I would have found you 20 years ago! Could you please do a "catch up" video for those of us that are older and didn't save in our 20s and 30s?
"If you think you can or if you think you can't, either way you're right" -Henry Ford
"Is this video just one of Ramit Sethi's grievances after another? Because, if so, this is my favorite videos of all time!" 😆
A most learn money habit is to save/invest more than you spent/ earn .Make 250k a year live a 250k lifestyle =poor make 15k a year safe 7.5k a year =road to financial freedom. Thanks a bunch for another great video Ramit.
I’m in mid 50’s and just watched Netflix show, have your book. My question is could you show something with someone in this situation? I have a mortgage, mortgage under $800.00/months. How do I start?? I have a small 401k and owe less than 100,000 on my home…
I love the swipes against “influencers who live in the middle of nowhere” and “you want to be entertained? Get a dog” 😂😂
What a great way to start my day.
solid video sir. i agree with everything in the video, but i think you miss a key way to leapfrog years ahead & increase your savings rate. if/when you get some extra money like the stimulus money, tax returns, a bonus from work, etc. you should invest 100% of it and jump ahead of your savings rate by a significant amount(for a low earner this can be huge!). example, if you invest $400 a month then get a $4k bonus it is a ten month jump that compounds and that one move makes your yearly contribution double.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@Ingridlourd02 However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@Ingridlourd02 Clementina Abate Russo is her name
Lookup with her name on the webpage.
@Ingridlourd02 You are welcome .
well sorry, but the fact you had 150k lying around to "invest" is very telling that you were already in a better situation than most...
Automatic investing is the 🔑 to a comfortable life🙏🏿😊
Thank You Ramit Your advice is real. My father is 90 and has done what you are saying 50 years ago.
three tips on how to become a millionaire on a low salary:
Budget Wisely: Prioritize saving and invest any extra income wisely. Cut unnecessary expenses and live below your means. Consistently saving even small amounts can add up over time.
Increase Income Streams: Look for opportunities to boost your income outside of your primary job. This could include freelancing, starting a side business, or investing in passive income streams like real estate or stocks.
Continuous Learning: Invest in your education and skills development to increase your earning potential. Take advantage of free or low-cost resources such as online courses, workshops, and networking opportunities to expand your knowledge and expertise.
I love your honesty and sage advice. You speak the truth. There are no get rich quick schemes unless you inherit a lot of money from family or become a celebrity somehow. Wealth building occurs slowly over time. Thank you for keeping it real, and your advice is so real and awesome, especially for those young people who think they can beat the market.
Thanks for the concise and well-paced video. I'm sharing it with my kids 🙌
At the beginning stages of using your side kick program. Being consistent is the key and having patience 😅 appreciate your content. The best out there
My good friend Louis, who lived up to 99 years old , lived out of his dividend investments that paid him 90K a year, he died with about 3M in the bank 😮
So what was the point?
50k a year after taxes is 40k a year. Minus 7k in investing is 33k a year. Childcare is 14k a year leaving 19k a year. Rent is 13 k a year leaving 9k a year, food is more or less 7000 a year. Leaving 2k, health insurance is 2,400 per year. Leaving -$400 for utilities, gas, clothing, insurance, msc repairs emergencies and savings.
These numbers are fudged up. You need to crunch these numbers and submit them again.
I invest with vanguard as a self investor, so no management fees
I did the same and that made a HUGE difference in my returns.
what is your opinion on fidelity
@@sabrinachambers8353 I have them for my HSA, they're good. They have a more advanced interface and better options. I just like Vanguard because it's not owned by a private family, like Fidelity is.
But you can't go wrong with either one of them.
@@sabrinachambers8353 They're good.
The funds still have a yearly management fee.
I simply looked at my credit card and saw the spending summary and saw how much I was spending on non essentials. It blew my mind! So now I do a no buy month, I don’t spend money on anything other than food, bills and rent. Thus far I’m averaging $900 a month saving. I also paid off my truck that I bought 9 months ago in order to save $4500 in interest payments. So now I have that money plus the monthly payment to invest. It also helps to have a high interest savings account to grow my money for my Roth that I max out every year and I opened up a brokerage account that I can add money to every month. Hoping to have at least 1M when I retire in 15 yrs
*DONALD NATHAN SCOTT.*
Huh?
I have to say I don’t really watch these type of videos from anyone on TH-cam but this guy spoke facts and I understood everything with him on the screen and with the visuals thank you for these videos man keep up the great work you earned the new subscriber and I know a good amount of investing thanks to my dad so I was able to agree with a lot of things in this video and you helped me a lot as well!
Thanks for subscribing!
Being a millionaire has been a goal of mine (not a dream) since I was in college I keep hitting roadblocks but like that feeling on the tip your tongue I feel like I'm inching closer to figuring out how I can get there successfully. For me though I don't want to enjoy my riches when I'm old I want to travel and be with my family more while I'm young and can still do things.
53 and my "buying power"hasn't changed much if at all since my early 30s. And at $65k a year there's not a ton of light at the end of the tunnel. Doing what I can.
I like that you put the return assumptions and rate assumptions. And I liked that you used a more conservative percentage. At the start of my career, I looked at the lifetime returns of the lifecycle funds offered at my university. None of them reached 7%, and I’m pretty sure those were the nominal returns, not inflation adjusted. Lifecycle funds are almost never all equities, especially in the latter half of the worker’s tenure and the market average people tend to refer to is stock market, not bond market. Long story short, I ultimately decided to only leave a portion in my lifecycle and put the other portion towards something more representative of the stock market.
"Investing is boring." I wish more financial types would say this. It's one of the reasons I haven't finished any investing or finance books (I've started plenty). Investing really is like watching paint dry.
Well that might depend on how much money is thrown in. I consider making more than I spend better than any investment SH*T period!!!
Glad I watched until the end. That last tidbit is golden!
Good work Ramit. I have been watching your videos lately because I like the idea of creating that guilt free spending room in my budget. I see when you are recommending set percentages for savings, fixed, investment etc but it is based on GROSS income. For someone like me taxes can be about 22-32% of my gross. How does that affect your recommendations?
You're a real gem Sir🎉❤
Have your book downloaded audible. Must say, your candid, honest and fun approach to finance, makes this book the most accesible, easy follow educational piece in a long time. ❤I’m making mandatory to all my staff, teams and closest friends to read or listen to it.
Thank you for listening!
What do we invest into? The s&p 500 ?
That's a good place to start. I cover investments in my book: amzn.to/3GrLywk
great I can become a millionaire when I'm old and after years of living on a tight budget (assuming I don't die first). Yayyyy.
Don’t get yourself trapped in a marriage or parenthood… if you’re living on a low income - just my thoughts
Agreed. Don't run to monetary partnership, and get there entirely on your own.
Ummm..... Disagree. Choose who you marry and have kids with wisely. Be on the same page with finances... Shouldn't be a problem.
I'm assuming these comments and likes are from very young people who have zero clue about marriage or kids. I am a mom I am 40... We live on a modest lower middle class income I stay home with kids... We have enough and it is working and has been for years.
Right. Don't live and dont create life. Just pile up money 😂
@@mmd2035 - I don't know too many people living in poverty - jumping for joy! - or - parents arriving at home feeling fully exhausted after a stress filled day at their work.. /
Staying single saved my life 😌
@@mmd2035 - it is a crime and a sin to bring children into hardship and poverty - that's why birth rates are coming down...
Before following your advice, I was saving too much, not spending some of my earnings on what I enjoy and barely investing. Changing my financial behavior really helped motivate me, increased my happiness and also made me not scared to invest a certain percentage each paycheck.
The sad part is, I was laid off 6 months ago and am having a nightmare finding a new job in my field, but one thing is forsure, I look forward to balancing my finances again when I finally get a job again. In the meantime, any financial advice for those of us facing layoffs? Especially when unemployment benefits runs out.
If you're young, you have time on your side. Live at mom and pop to save on rent and follow this guy's advice. I wish I had this information when I was 18. I didn't know I would be farther ahead if I immediately joined the workforce instead of struggling my young adult life in college and trying to figure out what to do with my life. Fuck. I feel so frustrated. I could have $500k in investments with a low stress job working 40hrs a week instead of working 50 hrs a week trying to play catch up.
So true. My wife and I both have 4 year degrees yet worked jobs that didn't require a degree. We are retired now and did a good job saving but didn't start saving until age 31. We got lucky. Starting early is the key.
What's up Ramit.. i'm Ibe's uncle.. We haven't seen each other since Jersey City.... love your work! Tell Nagina , Rachi & Manesh that I said hi..
Subscribed recently and I’m loving your content! Thank you so much for your insight 🙂
Awesome! Thank you!
For those that have accumulated enough money to almost retire, but out of work and need health insurance, you just need to make 15k a year to be eligible. If you can do that, your health insurance will be mostly subsidized by ACA. You can get a low paying job but still have insurance.
I wish they taught more about investing in school.
They don't teach it for a reason. Financially literate people don't make for good worker drones. Someone needs to serve the McFries I guess...
I love when you talk about people with a low o medium salary.
Big ups to everyone working effortlessly trying to earn a living while building wealth. My husband and I we are both retired with over $2m in net worth and all paid off debts. Living smart and frugal with our money, made it possible for us this early even till now we earn passively with our asset coach Sam Deymon Adapt to a lifestyle be thrifty, set a budget, save money and build more streams.
What type of investing are you referring to in this video? Sorry absolute beginner here
Is anyone else here from Louisiana? How do you manage to trade? Does it require large capital for beginners?
Can be anything from a 401k(s) with your company, IRA, personal stock brokerage account, or other accounts. Prefer that you go for Roth 401k if available and Roth IRA so that money grows and can be withdrawn at eligible ages tax free.
AMX300K has the most potential to do more than X10. ETH and BTC will most likely do a X5-X6, but that's fine for me. Gotta look for better entry points while I stake IRIS and PGEN, then wait for Polygen's next raise as I also look at their new partnership with Kenzo Ventures.
Somebody bagholding AMX300K
I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.
It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
I've never heard any even remotely informed dividend investor suggest that they'll average "20-25%" returns. Idk what his problem with dividends is, but it wasn't articulated in a way that makes any sense here, not to mention the indexes he recommends contain tons of dividend stocks and pay a dividend themselves.
This was super inspiring thank you!
Just ordered your book yesterday and here you are first on my page on youtube😁
Never seen any of your videos and this one was really good, thank you!
Great to have you on the TH-cam channel! Enjoy the book
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial expertise. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?
Judith B Richards is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
*The problem today is most people always think that, you only need a good job to get rich... These millionaires are operating on a whole other playbook that many don't know exists*
Thanks Remit
How to learn where to invest if I am in Canada? Is your book relatable to other countries? I wish I have seen your videos years ago. Now at late 40’s and recent disability from back injury. I won’t give up! And even if it is little by little I want to invest for my senior years! Do yo have any shows with people on disability income? Thank you for showing light and guidance to us who did not grow up with financial education. It is never late to learn.
dudes got rad eyebrows
When I first started investing at 22, I was saving 400 a month. Now, it's much more due to my income increasing considerably, so at 40 I have a million. And I had a setback at 30, I had to pay 40k cash loss to finalize the sale of a house due to a divorce. Anyhow, it works.
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
Stacy Lynn Staples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
1 million is the goal - let's make this happen!
So I buy index s&p 500 correct!
Hi Remit,
Is Robinhood a good way to start investing? I’m 59 single woman and just now educating myself regarding money. Thoughts?
No, Robinhood incentivizes very risky behavior. Please get a copy of my book from a bookstore or library to focus on low-cost, long-term investing
See I’m not actually worried about the amount to save. I’m concern on that time like what age group you talking about ..
Automatic investing is the key! Thanks for sharing!
hey could you do a video on what type of money habits you should have when you turn 18 such as credit cards ? thanks
Also, no matter the age, you should pay a credit card off every month and maintain contributions to an emergency fund. If you can't pay the balance, then you can't afford some of the things that were purchased and need to switch to paying with debit/cash until the balance is gone completely and you have an emergency fund growing. You can then use the credit card for only one or two planned purchases a month (like a grocery trip or filling up with gas once a month) until you are comfortable with the practice of paying the balance in full each month. If you find yourself with debt again, you might just need to stick to debit, which is fine. Points are really only good if you don't pay interest. Hope that helps for now ✊
I’m going to piggyback off what the person above me said:
Rule #1 Before shopping around for cards, try opening a starter card with your current bank/credit union if you have one. Why? The APR rates are typically lower and you already have the preexisting relationship to get instantly approved for a credit line.
Rule #2 Before even touching that card for any purchases, calculate 30% of your credit limit. Why? Because this is the exact amount you need to keep your card usage under so you don’t accidentally max out under the common misconception that credit cards are “emergency money.” You should not be using anything over 30% of your credit card’s limit.
Rule #4 Again before touching your card, calculate 1%, 2% and 3% of your credit limit. Why? Just in case you’re ever short on being able to pay your balance in full, you should aim to pay down the card to at least one of these numbers before your statement close date.
Rule #5 KNOW YOUR STATEMENT CLOSE AND DUE DATES ‼️ Think of your statement close as your deadline before the credit company snitches on you about what you spent. Ideally, you’ll want them to report that you used a healthy amount of your limit (anything under 7%), so the best thing to do is pay your balance completely off before the DUE DATE. The Due Date only comes into play if you decided to carry a balance over. That is the day you have to pay the balance you carried before any interest penalties are triggered. These dates are very important because you want to limit your card to at least 1 or 2 purchases and leave a week of breathing room to pay your balance off.
Rule #6 Don’t get roped into gamifying debt by hustling for rewards points. Keep your card simple until you’re comfortable enough to handle doing that. It’s nice to benefit from the rewards, but remember they’re typically pennies on the dollar and the overall goal with credit is to establish a payment history. Don’t make your credit journey too complicated.
Best advice for establishing a payment history: Use your smallest bill/regular monthly purchase and put it on the card if it’s billed before your statement close date. Pay it off.
Good luck ☺️
Wow , thank you! Honestly what stops me from investing is the lack of trust I have . I’m scared to do the wrong thing . The invest in the wrong thing. Do you offer coaching at all?
Yes, iwt.com/moneycoaching
Great and direct advice
Thank you for watching!
Since I started to dig into this topic (around 04) years ago, I always try to talk to people about investing. 90% of them don't invest and worst than that, they don't want to hear about it! They either talk back as if this is a bad idea and pull ideas out of their ass to "explain" why it's not good or they treat me as if I'm trying to bring them into some sort of pyramid scheme and they slowly move away from me by changing the topic. It's kind of frustrating and I'm starting to not give a fuck about others anymore.
Does it make sense to start investing at age 52? I feel like I've missed the boat. Always been too scared that the money would disappear. Also, I live on my own and need savings in case something happens (I can't fall back on anyone else and don't use credit cards). I'm in the UK and have no idea what would be a good (low risk) way to invest.
me too at age 56. investing takes years to build compound interest but maybe we don't need a million ;)
Yeah, I'm going to be a millionaire at 65, but I can't do a sh*t at that age, I preffer enjoy life in my younger years and just die at 65.
Ramit I liked you until you started trashing my dividend investment 😂
Apart from rent, my biggest expenses is take outs, eating out
why do I need $ 1mil after age of 65😂😂 That money become useless when you are old age pensioner mate.
Not everyone gets a pension. So having $1Mil at 65 the. You can retire and live off of your investments. My Dad is living off a pension and social security and he’s constantly saying he doesn’t have enough money. He’s 78.
How do you know? Are you 65yrs old or older?
Did yo pay for a wedding for your kids?
You need to have a budget. My husband and I save save and save now we are retired before 60 and live comfortably. We put our children through colleges 5 and 8 years with debt free. We are fortunately ones. But have a BUDGET is the key.
You have no idea at all’
Hey Ramit, I've been following you for some time now. What's your investment advice for your UK audience?
Check out the UK version of my book!
Can you drop the link here?
Is there an Australian version?
Dude, I am already older that 24! So tired of you people… we are 35. Or 40 years old…
I'm tired of people who can't apply a lesson to their own individual situation, aren't you?
Over $20K a year he said to invest if you want to retire in 20 years… I know it’s a lot though.. 😩
@@ezzy4407 Yeah the creator is busy trying to tell people to apply rather than being honest that the older they are the worst it will likely end up being.
People will complain about anything. Something is better than nothing
@@suburbanboymusic Well tell that to the criminal and civil court system next time they start finding problems!!!!
Excelente como siempre Ramit. Mil gracias por educarnos.
Who wants to wait until 65 to become rich like wth am i going to do in life at 65 smmfh
A lot....
Don’t think of it like that. It’s like here’s a little something on the side to MAKE SURE if my stuff didn’t work, at least I tucked away this 💰🤑 cause trust me no one does it. And if you do you get to actually LIVE again
65 is not old and decrepid and dying.