I really respect this guy the way he lives and he talks. He is just a smart and honest person. All of his points make sense, reasonable, and straight to the points. Other youtube channels, people keep chatting and chatting and I stop watching in the first minute.
Counter-intuitive ideas 1. Being frugal can cost you 2. Spending more can save you more 3. Renting can be a better financial decision than buying 4. Paying your mortgage ahead of time isn't always the best decision 5. A financial advisor costs him 6. Passion alone does not pay the bills 7. Money can make you happier 8. Never make an expensive purchase based on the monthly cost 9. Managing money does not just mean tracking expenses
@@giulanoemrani1445when you rent, you’re not responsible for property insurance/taxes, maintenance and repairs, etc. those are all extra costs on top of one’s mortgage payment that homeowners have to pay. The mortgage payment is the starting figure and there are all these extra costs renters don’t pay for. The rent payment is the max renters pay. Landlord is responsible for all those extra fees. Two problems with the view. First, rent is only locked in for 1-2 years, mortgage payment is locked in (assuming a fixed interest rate). Second, if the rental market can bear it, all those extra costs of ownership might be baked into your rent by the landlord.
@@SomeGuys31415 One thing - Rent is not always only locked in for only 1-2 years. I know plenty of people in Chicago who are in situations where their rent has not gone up (sure, there are some, but it's not a given).
Hey Ramit! I found your videos a few months ago and they have really helped me set a financial foundation as a recent college grad. I've been able to save $2000 in 3 months and got my internet bill lowered from $110 to $23 using your methods. I am confident in my finances now and revel in the fact I have a plan moving forward. Thank you for all that you do to educate people!
Dear Ramit, I had to laugh because I had a little ironing and sewing business, (along with my in home family baby and toddler-care business) lol. I found word-of mouth customers who HATED ironing and (didn't like the sums being charged by the drycleaners either !). Thanks to my mother and grandmothers, who loved ironing dampened, fresh-from-the-clothesline -in -the -sun, shirts, pants, linen tablecloths... etc, I learned to iron to Navy Standards!, practicing 1st on my dad's handkerchiefs and graduating to pillowcases and then shirts, and similarly loved it. I wasn't too crazy about doing pants, but my customers hated it even more, and were glad to pay ME an increased rate to do it instead! (especially those with military husbands) paid for all kinds of school expenses for my sons and some extras for all of us. my front hall closet, where items ready to pick up were hung, made me quite a bit of money (and friends) over several years! Still love doing it.
Absolutely LOVE this channel! Not only is Ramit a brilliant teacher, but he is hilarious! Love learning about money management skills in an entertaining way. 👌🏽
I don't how I missed your video for years? I am 54 and got a new energy after seeing your videos... you are amazing and nailing the facts directly..keep enlightening us
Ramit, you could be accused of being repetitive in your videos but I love it! I've learned so much from them and your podcasts. And your presentation and delivery is just refreshing. ❤
I really admire this man. He is so honest and natural. No fake personality or exaggerated. I wish I knew him earlier. It's never too late. I am positive 😊
Buying a house isn't always about saving money, although in the UK, it makes sense, especially if you are not living in London. To me, it is about stability, knowing that a landlord isn't going to issue a 3 months notice to vacate during the winter. I guess it is part of my 'rich life'
My career has been kind of random (ecologist, urban planner, political aide, etc) but I gained a lot of skills and networking. While my current job (economic development analyst but more real estate) is not my passion, I do make a great salary and it allows me to build my financial wellness on top of mental/emotional health. Mainly because I don’t have issues with setting boundaries to improve my work/life balance. I can also enjoy guilt free spending along with paying off debt. I also rent because it’s simple.
Psychology about debt. You’re right. That’s me. And I’ll tell you what, when I set goals to, for example, pay the mortgage and do it, it turbos my other goals. It does something energetically and to the psyche.
I agree about the buying of a house but I am homeowner (mortgage free)and I currently rent overseas. The cost of rent is once and done, easy to predict 😅 whereas the homes we have owned have often been well over the 3% anticipated maintenance costs. I think Ramit is right about renting if you are transient, are at the top of your needs allocation of your spending or in a high mortgage cost/rates environment. In the UK, where I have my house, buying a house is almost a rite of passage. To a certain extent this conversation is all very privileged... a secure, safe and affordable roof over ones head is the goal!
When financial advisors tell me it's not mathematically sensible to pay off my mortgage early, they never factor in the mortgage payment I'll no longer have in their calculations. In short, it's smart to invest, and it's smart to pay off your mortgage.
Hmmm. Depends how long you have to go to pay off your mortgage. If there will still be several years left, better to put the extra money to investments that yield more than your interest rate on the mortgage. Compounding really adds up. I am 52 and now am very grateful for my 50$ monthly investments I began when I wa 24.
I'm that spreadsheet tracking dude you talk about at the end. "What they're really doing is playing small" - damn bro that hit really hard, and is the most succinct explanation I've ever heard. Totally on point, and I needed to hear that. Tracking things has helped me gain insight, but now I've turned it into a religious practice.
We finally bought a house after many years of renting. It has been a great decision for us. If we compare a similar house for rent my estimate is that we'll break even after about 8-10 years of owning. That's including down payment and closing cost fees, the refinance, mortgage, tax, insurance, maintenance, repairs and upgrades. Once the house is paid off then that's when things get really interesting. Our housing expense will be lower. Plus if we want to travel for a few years we can rent the house and use that money to pay for housing in another city/country.😊
Love this! I didn’t buy a home until it made sense! I rented for years, it was the best decision I ever made! Everyone I thought I was crazy now they think I am a genius😊
Agree with 99% of the tips... except the prepped meals. From a financial perspective, the cost of ordering prepared meals regularly adds up quickly. Most importantly if saving time is the main concern, most prepared meals contain preservatives and additives to extend shelf life, which compromises nutritional value and contributes to health concerns in the long term (even when the meals are never frozen and prepared by chefs). There's also a lot of waste associated with the packaging and transportation of these meals. A few prepped meals doesn't hurt during a busy week (we used Factor once or twice), but it's a really bad idea in the long run for finances, health, and the environment...
Thank you Ramit. I just put your budgeting technique from another one of your videos into play. And now i just don't worry about my finances anymore, and even feel great about spending my play money. It's a great balance to save and invest for the future while still living life now. Thank you again. You're a gem.
As a spicy food enjoyer I wholeheartedly agree with your sentiment, Ramit. I would attend a class of Ramit’s spicy food. Grew up in a Mexican household and grew up on spicy food and then I had Indian spicy food and it taught me that intense spiciness and good food do mix. As opposed to the people who make spicy sauces and food just to dump all their effort into the spiciness and not making the food enjoyable.
Been a fan since your Netflix show and about to start reading your book. My coworkers pressuring why I dnt own a house but your right renting is cheaper for me.
thank you Ramit for sharing all of your knowledge, insights and wisdom - I noticed some times people commenting saying "he's just saying the same thing over again" but honestly for myself (can't speak for anyone else), I need this stuff drummed into me and each time Ramit shares something, even if it's a similar message, I always pick up something new or hear it from a different perspective. I really appreciate someone (Ramit) taking time out of their life to make helpful content which is accessible. It may not be helpful for everyone or someone who knows everything already (which I always think there's still room to grow & learn) but for me and I'm sure many others, it certainly is helpful. 💐 Also, for those who already know everything, then you don't need to be watching Ramit's channel, rather you could be making your own videos to share your knowledge with others!
Thank you for all you do for personal finance. I've intuitively followed your advice over the years without realizing if I was doing the right thing or not (but it felt right to me). I'm glad I found your channel and for clearly confirming what I have been doing makes sense (renting vs buying and reinvesting the difference, keep my finances simple, not paying a % based FA (or any FA for that matter), cutting costs mercilessly on things I don't really care about and spending (not quite lavishly yet) on things I love.
I agree with the Money Dials, specially the Eating Out. Some financial advisor said our $400 budget for Eating Out was high ($600 grocery etc, $400 Eating Out, total $1k for food budget). But my husband and child enjoy it. We drive one secondhand car, we don’t spend when we go to the mall (except for occasional kid clothes, or kid toys). I don’t buy expensive bags etc. Our simple joy is eating good food outside our home once a week. And we live in a vibrant city with lots of food diversity. Sometimes these financial advisors want you to cut, cut, and cut because they want to get their commissions. He was selling Whole Life Insurance 😬. You also have to remember that we live NOW. Not in the future. Life is now. I can die tomorrow or later.
Hi Ramit, I appreciate your perspectives on money. It reminds us of a balance of living and saving. I mean some spending habits must be addressed in order to achieve the goal. But too much deprivation often backfires. It also begs an individual to discover his or her own rich life. This is crucial for many of us whose minds and standards are flooded with what is on social media. I also like your gradual approach of achievable and gradual savings. It makes me feel like I can make a gradual change today. One day the compilation of these changes will be a big change. It teaches me patience as striving for my goal and also asess or align my expectations as needed.
I appreciate you calling out the "hate debt" people, I'm one of them. It stresses me out and I think about it all the time. My goal is to pay off my mortgage so that my high-paying but stressful job feels optional soon enough
The best channel that speaks logic about money. I am surprised you do not have 1M subscribers yet. You're a genius. thank you for your videos i always watch them.
been lookin for a good podcast/ speaker to help me come up fixin my mindset with money. Heard you on the Mel Robbins Podcast. Funny as hell bro love listenin to you while im relaxin grinding on my game . Just the few vids ive listened to have really opened my eyes up to some issues Ive had.
Real, non-criticizing question: can charity/benevolence be a money dial? Or are money dails more for individual goals/spending? I know there's nuance and personal beliefs to this topic, but it's not usually talked about in reaching personal finance goals and freedoms. I just want to know where it fits, and if there's a such thing as "turning up the dial" that doesn't spill over into self-righteousness or savior complex or self/familial neglect in a healthy personal finance psychology.
For anyone who is still fighting the 'buy vs rent' idea and want to buy, here's the best advice I've ever heard: Start an LLC, and buy the house with that. Then pay the LLC rent, and use the LLC to pay the mortgage and ownership costs. The LLC can claim repairs and expenses as tax deductions, and you still 'own' the house. Same end result, different path to get there
Key take away from the channel, I never exercised the spending muscle in a healthy manner I didn’t understand my money psychology Did you know he wrote a book and has a Netflix series?! Jokes aside I love that he asks the why question in a very relatable and explainable fashion. It’s lot all about the actual money but what the money translates to and why you are choosing each pathway. With explanation and facts to back it up. That way you move consistently towards goals. Keep up your work my man! I’m a fan, not of every facet but still a lot of great knowledge and thought process benefits in your videos as a whole
I personally disagree with buying vs renting but I also tend to buy and keep property so that it turns into a long term investment I however did do what you said and ran the numbers and in the places I have lived it made more sense to buy. I have been on a binge of watching your videos. I really love how you interact with people, and make them feel comfortable talking about money.
Can you show us how to calculate how much we actually need in retirement/investments please? Your statement on over saving and not knowing what to do with your money is a great point.
I will say this is the most truthful and favourite video of all time .I'm in my 50s and I'm more interested in investments that could set me up for retirement . Please what's the strategy behind such returns?
I don't know of any fiduciary financial advisor that would charge 1% on an unlimited amount. Most fees will go down as your AUM goes up. 1% on $2,000,000 is unreasonable and almost never seen. Usually the 1% applies to the first $500k-$1M, and then on a regressive schedule. Hourly is fine and makes sense for many people, but it is not as black and white as Rameet makes it sound. Love your content, and I love how you shed a light on those advisors that charge an ongoing fee for doing nothing but rebalancing and asset allocation.
Good job Ramit, I have seldom seen or heard a smarter contribution when it comes to private finance. The art is really how should treat your savings. And it even starts before: What are your goals / priorities ? That are the key questions. That was well elaborated.
It is not necessarily irrational to pay off a low interest mortgage EVEN THOUGH it may be possible to make more if you don't. It's not about making a suboptimal financial decision or an emotional one; it can be RISK based. "If I lose my job, I need my mortgage to be as low as possible so that I can refinance it and afford it on a lousy job."
Some interesting takes and a lot of it challenges the conventional way of thinking, a lot that was manifested by institutions that stood to make the most out pushing people to think that way. Renting vs buying, it is a math equation and one that is a lot like gambling. We bought a house at the right time ,in the right neighborhood, and it seems as this investment is going to pay off, but the phantom cost to maintain and insure a protest are so high that we would have definitely made more by investing all of those funds. Thinking back I don’t think i would change anything. I was right for us. Paying our house off early was a gut wrenching decision but in the end it just feels different not to owe anyone and that peace of mind is invaluable to us. We are able to change jobs not worried as much about compensation and focusing on quality of life. Having that mental space clear is freeing.
I really struggle to find anything for my guilt-free spending money. I get so much anxiety and I find myself saying no to everything for myself because any extra money goes to making my son happy, taking care of my house or my family, paying down debt or investing. I can never justify spending a cent on myself.
@@ramitsethi you're definitely right, it isn't helpful to frame it that way. I automatically look at money spent on myself as frivolous and wasteful, and if I were giving advice to someone else I would tell them to relax and enjoy their life a bit! It's a mindset that I really need to work on. Maybe I'm too money-focused?
Can you please do a video on your net worth? Portfolio? And real estate assets ? 🙏🏽👍🏼❤️ I do appreciate all your financial videos, I just need to see how you did it 👍🏼
The fees and hidden costs are what gets people. It's not always how much you make but how much you keep. Keeping expenses down is another cog in the wealth machine.
U good brother start listening to you. couple months Really good teacher I never invest but I’m going to do now. My son is 12 year old. I order your book and got it second edition give to my son to read and he listening to you and reading. God bless you brother.
I love your low key humour 😁I totally get it when you said people say they don't care about status, yet they drive an expensive ass car or have high end name brand clothes, purses, watches, etc. Who do they think they're fooling??! Lol
Question: I have an auto loan with an interest of 6%. I tend to pay an additional amount towards the principal, however, I was considering putting that additional money into ETF’s, which generates 10% - 12% annual returns. What would be the best option profit more on?
Thanks for mentioning running the actual numbers irt home ownership. Turns out it's *way* cheaper for us to rent for the next 30 years in our city than to buy. 58k vs 19k annual in favor of renting. The way everyone talks, I really thought it would be the other way around. Makes me rethink a lot of other 'truisms' that I carry about money.
I get why millionaires are careful with their spending. They need to maintain it, if that make sense, and keep working to continue staying rich
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It's like you are making videos to speak right to me.... I'm trying to find things to spend my money on that actually spark joy - the thing is - I can't find much anymore that does that.
Hey Ramit, I checked out your site looking for courses on how to be a financial coach following your theory on money. Is this something you will offer down the road?
After seeing my unfolded clothes on floor for the past week, I'm gonna start paying someone to wash and fold my clothes :) I tried Hello Fresh because I thought they had prepacked meals, but I still had to cook it up...laaame. I just want someone to dial in my macros and make it for me, then I'll be aaaaall set.
Hi Ramit ! Great video I bought your book loved it I bought 5 extra copies for my co workers to learn to save and invest . Thank you you have been a great teacher
I agree that renting can be better than buying but your rental price isn’t the maximum you will pay. Moving costs if landlord decides to sell, kick you out or move back in. Rental prices go up with inflation where as the purchase price of a house stays the same for the entirety of the mortgage period
I really wish Ramit would include rent increases in the rent vs buy calculator. Of course some times it makes more sense to rent, but if you're going to be in your house 7+ years, it's not like rent is going to be the same (so the initial rent isn't the "minimum" you will pay which ramit keeps repeating, but he includes tax/ insurance increases on the buy side) It might still work out to be cheaper, v but you have to include the hidden costs of both. There's also opportunity costs of renting which are impossible to predict
I agree. I am planning to purchase an affordable inexpensive cash bought home for my daughter, perhaps even with an HOA attached, which is a hell of a lot cheaper than rent increases, 35 years from now. To replace a roof for $28,000 is due able, as once or twice in a lifetime this may happen. Rents will continue to skyrocket as they severely have been, and she will not have enough funds to survive.
Great video, always helpful to give out and receive tips. To add to this, for entrepreneurs, understanding the Lifetime Value (LTV) of a customer can drastically change how you invest in customer acquisition - it's not just about the initial sale but the long-term relationship and revenue. Keep an eye on your customer acquisition costs (CAC) compared to LTV for sustainable growth.
Buying back time is a golden egg I have been relying on more and more over the years. Like if my job/specialty is X and I have to do Y, despite me being capable of doing Y (unless a hobby), am I losing more money by trying to do Y? As in, if I can do a thing rather than pay someone to do it, but takes me longer and in that time I could have either generated more income that I am "losing" or was able to enjoy the time with friends and family, then it's a no brainer.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
If you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
If I rent out my home (apartment) and live somewhere else, and I still have mortgage for that apartment, do I list the mortgage payments for the "investments" proportion in IWT's conscious spending plan? Or what? Thank you ❣️
Love your approach - just starting to try to separate from my % financial advisor. You mention all the low cost investing options in USA but do you know the best ones for Canadians?? My advisor has me in over 100 positions so to simply this mess is going to be a challenge!! Appreciate the time it might take you to answer this question Kind Regards 😊
I have thought of the buy vs rent for years now. I bought out my ex when we got divorced "for the sake of the kid", and I feel like I've been house poor ever since, even though I said I'd never be house poor. Now my equity is way more than the single capital gain exemption and the realtor fee would be so much... seems like it's better now to stay because of what it would cost me to sell, and rent here in HCOL area is so high. But I'm now dealing with high maintenance and repair costs since I've been here so long.
I love to splurge on travel and stay at beach resorts. Fresh omelets and coffee in the morning, snorkeling and swimming in the ocean, tanning, and fun nighttime entertainment.
After a year of ynabing, I really can’t tell how much my savings rate is because the line between saving and spending is so blurred. What do you mean by ‚saving‘? Keeping money to spend it later? How much later? Tomorrow? Next week? Next year? In retirement? I will spend all of my money at some point.
If you wanted someone to handle your laundry for you, I bet we could look through your Conscious Spending Plan, make a few changes, and outsource it. You can choose where to spend extravagantly and where to cut costs mercilessly
It all comes down to which house you buy. I've bought over 200 houses and made 30-200k net on almost every single one. Buying luxury homes is often not profitable though. To buy, you need to be willing to live where the deals are for awhile until you get RICH from it.
That TCO also counts for pets, because you also pay for shots, vet visits, food, and a bunch of other things. Getting a pet is a double-whammy: you have the emotional impact of Fluffy, but also the emotional impact of the money, and the surface-level cost of the pet is just the beginning.
Hi Ramit I want to invest in index funds. Do you have a link on the funds you recommend? I called Charles Shwab and guy said it’s all online. I can’t seem to find a way to do it online though lol
Great video, Ramit. Quick question. What hoodie are you wearing at 15:24? I have a longer question of particular quality clothing brands you'd recommend in general, but if you don't know offhand then no need - thanks!
![[TH] 2024 PMGC League | Survival Stage วันที่ 1 | PUBG MOBILE Global Championship](http://i.ytimg.com/vi/FVFT-PFwU80/mqdefault.jpg)
My guy, please get fit. You look sick.
Show me a video of you so I can critique it please
@@ramitsethi😁😁😁😁
He's not sick he's maturing. People change as they ages.
What is wrong with you? It’s sick that you post comments like this!
He doesn't look sick at all
I really respect this guy the way he lives and he talks. He is just a smart and honest person. All of his points make sense, reasonable, and straight to the points. Other youtube channels, people keep chatting and chatting and I stop watching in the first minute.
Counter-intuitive ideas
1. Being frugal can cost you
2. Spending more can save you more
3. Renting can be a better financial decision than buying
4. Paying your mortgage ahead of time isn't always the best decision
5. A financial advisor costs him
6. Passion alone does not pay the bills
7. Money can make you happier
8. Never make an expensive purchase based on the monthly cost
9. Managing money does not just mean tracking expenses
Thank you.
"Rent is the maximum you will pay, a mortgage is the minimum you will pay." I am going to use this line - that's great.
yep same here!
Can you help me understand this phrase?
@@adrian3747_i didn't get it. What does he mean by that? Can you help me understand? Thanks!
@@giulanoemrani1445when you rent, you’re not responsible for property insurance/taxes, maintenance and repairs, etc. those are all extra costs on top of one’s mortgage payment that homeowners have to pay.
The mortgage payment is the starting figure and there are all these extra costs renters don’t pay for.
The rent payment is the max renters pay. Landlord is responsible for all those extra fees.
Two problems with the view. First, rent is only locked in for 1-2 years, mortgage payment is locked in (assuming a fixed interest rate). Second, if the rental market can bear it, all those extra costs of ownership might be baked into your rent by the landlord.
@@SomeGuys31415 One thing - Rent is not always only locked in for only 1-2 years. I know plenty of people in Chicago who are in situations where their rent has not gone up (sure, there are some, but it's not a given).
Hey Ramit! I found your videos a few months ago and they have really helped me set a financial foundation as a recent college grad. I've been able to save $2000 in 3 months and got my internet bill lowered from $110 to $23 using your methods. I am confident in my finances now and revel in the fact I have a plan moving forward. Thank you for all that you do to educate people!
Great work!!
@@glorias.2930 Spectrum! (unfortunately)
How did you get ur internet bill lowered? Mine is currently 95$ a month which is crazy
Dear Ramit, I had to laugh because I had a little ironing and sewing business, (along with my in home family baby and toddler-care business) lol. I found word-of mouth customers who HATED ironing and (didn't like the sums being charged by the drycleaners either !).
Thanks to my mother and grandmothers, who loved ironing dampened, fresh-from-the-clothesline -in -the -sun, shirts, pants, linen tablecloths... etc, I learned to iron to Navy Standards!, practicing 1st on my dad's handkerchiefs and graduating to pillowcases and then shirts, and similarly loved it.
I wasn't too crazy about doing pants, but my customers hated it even more, and were glad to pay ME an increased rate to do it instead! (especially those with military husbands) paid for all kinds of school expenses for my sons and some extras for all of us.
my front hall closet, where items ready to pick up were hung, made me quite a bit of money (and friends) over several years! Still love doing it.
Absolutely LOVE this channel! Not only is Ramit a brilliant teacher, but he is hilarious! Love learning about money management skills in an entertaining way. 👌🏽
I don't how I missed your video for years? I am 54 and got a new energy after seeing your videos... you are amazing and nailing the facts directly..keep enlightening us
Ramit, you could be accused of being repetitive in your videos but I love it! I've learned so much from them and your podcasts. And your presentation and delivery is just refreshing. ❤
Having good finances is exactly that, repetition.
I really admire this man. He is so honest and natural. No fake personality or exaggerated. I wish I knew him earlier. It's never too late. I am positive 😊
Buying a house isn't always about saving money, although in the UK, it makes sense, especially if you are not living in London. To me, it is about stability, knowing that a landlord isn't going to issue a 3 months notice to vacate during the winter. I guess it is part of my 'rich life'
My career has been kind of random (ecologist, urban planner, political aide, etc) but I gained a lot of skills and networking. While my current job (economic development analyst but more real estate) is not my passion, I do make a great salary and it allows me to build my financial wellness on top of mental/emotional health. Mainly because I don’t have issues with setting boundaries to improve my work/life balance. I can also enjoy guilt free spending along with paying off debt. I also rent because it’s simple.
Psychology about debt. You’re right. That’s me. And I’ll tell you what, when I set goals to, for example, pay the mortgage and do it, it turbos my other goals. It does something energetically and to the psyche.
I agree about the buying of a house but I am homeowner (mortgage free)and I currently rent overseas. The cost of rent is once and done, easy to predict 😅 whereas the homes we have owned have often been well over the 3% anticipated maintenance costs. I think Ramit is right about renting if you are transient, are at the top of your needs allocation of your spending or in a high mortgage cost/rates environment. In the UK, where I have my house, buying a house is almost a rite of passage. To a certain extent this conversation is all very privileged... a secure, safe and affordable roof over ones head is the goal!
When financial advisors tell me it's not mathematically sensible to pay off my mortgage early, they never factor in the mortgage payment I'll no longer have in their calculations. In short, it's smart to invest, and it's smart to pay off your mortgage.
Hmmm. Depends how long you have to go to pay off your mortgage. If there will still be several years left, better to put the extra money to investments that yield more than your interest rate on the mortgage. Compounding really adds up. I am 52 and now am very grateful for my 50$ monthly investments I began when I wa 24.
I'm that spreadsheet tracking dude you talk about at the end. "What they're really doing is playing small" - damn bro that hit really hard, and is the most succinct explanation I've ever heard. Totally on point, and I needed to hear that. Tracking things has helped me gain insight, but now I've turned it into a religious practice.
Almost finished reading your book and ready to automate my finances. Thank you Ramit! Enjoying the podcast as well, keep up the excellent work.
Love your content Ramit. I just ordered your book and can’t wait to read it! ❤
Hi Ramit i just want to say thank you for the conscious spending plan its really helpful. Hope u have a great day bro.
My pleasure!
We finally bought a house after many years of renting. It has been a great decision for us. If we compare a similar house for rent my estimate is that we'll break even after about 8-10 years of owning. That's including down payment and closing cost fees, the refinance, mortgage, tax, insurance, maintenance, repairs and upgrades.
Once the house is paid off then that's when things get really interesting. Our housing expense will be lower. Plus if we want to travel for a few years we can rent the house and use that money to pay for housing in another city/country.😊
Love this! I didn’t buy a home until it made sense! I rented for years, it was the best decision I ever made! Everyone I thought I was crazy now they think I am a genius😊
Agree with 99% of the tips... except the prepped meals. From a financial perspective, the cost of ordering prepared meals regularly adds up quickly. Most importantly if saving time is the main concern, most prepared meals contain preservatives and additives to extend shelf life, which compromises nutritional value and contributes to health concerns in the long term (even when the meals are never frozen and prepared by chefs). There's also a lot of waste associated with the packaging and transportation of these meals. A few prepped meals doesn't hurt during a busy week (we used Factor once or twice), but it's a really bad idea in the long run for finances, health, and the environment...
Thank you Ramit. I just put your budgeting technique from another one of your videos into play. And now i just don't worry about my finances anymore, and even feel great about spending my play money. It's a great balance to save and invest for the future while still living life now. Thank you again. You're a gem.
Just Bought your book Monday! I hope to start it soon. So glad you came on my feed weeks ago, now I’m obsessed ❤❤❤❤❤
Can't wait for you to read it! Thanks for watching
Please read it all the way through, and if possible, more than once. On every read-through, I learn something I missed the last time
As a spicy food enjoyer I wholeheartedly agree with your sentiment, Ramit. I would attend a class of Ramit’s spicy food. Grew up in a Mexican household and grew up on spicy food and then I had Indian spicy food and it taught me that intense spiciness and good food do mix. As opposed to the people who make spicy sauces and food just to dump all their effort into the spiciness and not making the food enjoyable.
I call Indian food "spiced", not spicy.
Been a fan since your Netflix show and about to start reading your book. My coworkers pressuring why I dnt own a house but your right renting is cheaper for me.
thank you Ramit for sharing all of your knowledge, insights and wisdom - I noticed some times people commenting saying "he's just saying the same thing over again" but honestly for myself (can't speak for anyone else), I need this stuff drummed into me and each time Ramit shares something, even if it's a similar message, I always pick up something new or hear it from a different perspective. I really appreciate someone (Ramit) taking time out of their life to make helpful content which is accessible. It may not be helpful for everyone or someone who knows everything already (which I always think there's still room to grow & learn) but for me and I'm sure many others, it certainly is helpful. 💐 Also, for those who already know everything, then you don't need to be watching Ramit's channel, rather you could be making your own videos to share your knowledge with others!
Thank you for all you do for personal finance. I've intuitively followed your advice over the years without realizing if I was doing the right thing or not (but it felt right to me). I'm glad I found your channel and for clearly confirming what I have been doing makes sense (renting vs buying and reinvesting the difference, keep my finances simple, not paying a % based FA (or any FA for that matter), cutting costs mercilessly on things I don't really care about and spending (not quite lavishly yet) on things I love.
Love that you’re embracing that touch of grey in your hair and beard, Ramiro. Very distinguished looking.💕
I agree with the Money Dials, specially the Eating Out.
Some financial advisor said our $400 budget for Eating Out was high ($600 grocery etc, $400 Eating Out, total $1k for food budget). But my husband and child enjoy it. We drive one secondhand car, we don’t spend when we go to the mall (except for occasional kid clothes, or kid toys). I don’t buy expensive bags etc. Our simple joy is eating good food outside our home once a week. And we live in a vibrant city with lots of food diversity.
Sometimes these financial advisors want you to cut, cut, and cut because they want to get their commissions. He was selling Whole Life Insurance 😬.
You also have to remember that we live NOW. Not in the future. Life is now. I can die tomorrow or later.
Hi Ramit, I appreciate your perspectives on money. It reminds us of a balance of living and saving. I mean some spending habits must be addressed in order to achieve the goal. But too much deprivation often backfires. It also begs an individual to discover his or her own rich life. This is crucial for many of us whose minds and standards are flooded with what is on social media. I also like your gradual approach of achievable and gradual savings. It makes me feel like I can make a gradual change today. One day the compilation of these changes will be a big change. It teaches me patience as striving for my goal and also asess or align my expectations as needed.
I appreciate you calling out the "hate debt" people, I'm one of them. It stresses me out and I think about it all the time. My goal is to pay off my mortgage so that my high-paying but stressful job feels optional soon enough
I heard some advice along these lines years ago, and now I’m in a place in my life where I’m psychologically ready to listen and act on this advice.
I love to iron. It is relaxing and calming.
The best channel that speaks logic about money. I am surprised you do not have 1M subscribers yet. You're a genius. thank you for your videos i always watch them.
Buying back my time honestly saved me. one thing I will always focus on now , love your videos
been lookin for a good podcast/ speaker to help me come up fixin my mindset with money. Heard you on the Mel Robbins Podcast. Funny as hell bro love listenin to you while im relaxin grinding on my game . Just the few vids ive listened to have really opened my eyes up to some issues Ive had.
Dude you're the goat, I'm considering you from now on my true life guidance and mentor.
Real, non-criticizing question: can charity/benevolence be a money dial? Or are money dails more for individual goals/spending? I know there's nuance and personal beliefs to this topic, but it's not usually talked about in reaching personal finance goals and freedoms. I just want to know where it fits, and if there's a such thing as "turning up the dial" that doesn't spill over into self-righteousness or savior complex or self/familial neglect in a healthy personal finance psychology.
I love this channel, it is so motivational and always put me into action!
I can't believe how happy Ramit looks when he's ironing... it's ridiculous 😂😂😂😂😂😂😂😂😂😂😂
For anyone who is still fighting the 'buy vs rent' idea and want to buy, here's the best advice I've ever heard:
Start an LLC, and buy the house with that. Then pay the LLC rent, and use the LLC to pay the mortgage and ownership costs. The LLC can claim repairs and expenses as tax deductions, and you still 'own' the house.
Same end result, different path to get there
Key take away from the channel,
I never exercised the spending muscle in a healthy manner
I didn’t understand my money psychology
Did you know he wrote a book and has a Netflix series?!
Jokes aside I love that he asks the why question in a very relatable and explainable fashion. It’s lot all about the actual money but what the money translates to and why you are choosing each pathway. With explanation and facts to back it up. That way you move consistently towards goals. Keep up your work my man! I’m a fan, not of every facet but still a lot of great knowledge and thought process benefits in your videos as a whole
A video comparing debt payoff and investing the difference would be dope!
I personally disagree with buying vs renting but I also tend to buy and keep property so that it turns into a long term investment I however did do what you said and ran the numbers and in the places I have lived it made more sense to buy. I have been on a binge of watching your videos. I really love how you interact with people, and make them feel comfortable talking about money.
Can you show us how to calculate how much we actually need in retirement/investments please?
Your statement on over saving and not knowing what to do with your money is a great point.
The Pie illustration is just what I need now🙏🏿😊😊😊
I will say this is the most truthful and favourite video of all time .I'm in my 50s and I'm more interested in investments that could set me up for retirement . Please what's the strategy behind such returns?
I don't know of any fiduciary financial advisor that would charge 1% on an unlimited amount. Most fees will go down as your AUM goes up. 1% on $2,000,000 is unreasonable and almost never seen. Usually the 1% applies to the first $500k-$1M, and then on a regressive schedule. Hourly is fine and makes sense for many people, but it is not as black and white as Rameet makes it sound. Love your content, and I love how you shed a light on those advisors that charge an ongoing fee for doing nothing but rebalancing and asset allocation.
Good job Ramit, I have seldom seen or heard a smarter contribution when it comes to private finance. The art is really how should treat your savings. And it even starts before: What are your goals / priorities ? That are the key questions. That was well elaborated.
I love that part ' if you think black paper is spicy then definitely we are not friends'.🤣
I love your videos Ramit!!! I have been too frugal pinching pennys to build a house and it is nothing but a money pit! I am selling as is.
I bought the book today!
It is not necessarily irrational to pay off a low interest mortgage EVEN THOUGH it may be possible to make more if you don't. It's not about making a suboptimal financial decision or an emotional one; it can be RISK based. "If I lose my job, I need my mortgage to be as low as possible so that I can refinance it and afford it on a lousy job."
Some interesting takes and a lot of it challenges the conventional way of thinking, a lot that was manifested by institutions that stood to make the most out pushing people to think that way.
Renting vs buying, it is a math equation and one that is a lot like gambling. We bought a house at the right time ,in the right neighborhood, and it seems as this investment is going to pay off, but the phantom cost to maintain and insure a protest are so high that we would have definitely made more by investing all of those funds. Thinking back I don’t think i would change anything. I was right for us.
Paying our house off early was a gut wrenching decision but in the end it just feels different not to owe anyone and that peace of mind is invaluable to us. We are able to change jobs not worried as much about compensation and focusing on quality of life. Having that mental space clear is freeing.
I really struggle to find anything for my guilt-free spending money. I get so much anxiety and I find myself saying no to everything for myself because any extra money goes to making my son happy, taking care of my house or my family, paying down debt or investing. I can never justify spending a cent on myself.
What if you didn't have to "justify" spending money on yourself? What if that's entirely the wrong frame to use?
@@ramitsethi you're definitely right, it isn't helpful to frame it that way. I automatically look at money spent on myself as frivolous and wasteful, and if I were giving advice to someone else I would tell them to relax and enjoy their life a bit! It's a mindset that I really need to work on. Maybe I'm too money-focused?
Can you please do a video on your net worth? Portfolio? And real estate assets ? 🙏🏽👍🏼❤️ I do appreciate all your financial videos, I just need to see how you did it 👍🏼
Dude, you're a gift for our time!
The fees and hidden costs are what gets people. It's not always how much you make but how much you keep. Keeping expenses down is another cog in the wealth machine.
You are 100% correct. Guilt free spending is hard for me at 37 and I’m debt free and mortgage paid off
U good brother start listening to you. couple months Really good teacher I never invest but I’m going to do now. My son is 12 year old. I order your book and got it second edition give to my son to read and he listening to you and reading. God bless you brother.
I love your low key humour 😁I totally get it when you said people say they don't care about status, yet they drive an expensive ass car or have high end name brand clothes, purses, watches, etc. Who do they think they're fooling??! Lol
Question: I have an auto loan with an interest of 6%. I tend to pay an additional amount towards the principal, however, I was considering putting that additional money into ETF’s, which generates 10% - 12% annual returns. What would be the best option profit more on?
I'm interested in becoming a financial coach in the UK. What would you advise?
Thanks for mentioning running the actual numbers irt home ownership. Turns out it's *way* cheaper for us to rent for the next 30 years in our city than to buy. 58k vs 19k annual in favor of renting. The way everyone talks, I really thought it would be the other way around. Makes me rethink a lot of other 'truisms' that I carry about money.
Great job running the numbers!
Ramit I'm from Brazil and I love your videos!! Thank you so much!!
Love the money dial concept! Most of those are my motivators to make more. Thanks, Ramit!
I get why millionaires are careful with their spending. They need to maintain it, if that make sense, and keep working to continue staying rich
It's like you are making videos to speak right to me.... I'm trying to find things to spend my money on that actually spark joy - the thing is - I can't find much anymore that does that.
Hey Ramit, I checked out your site looking for courses on how to be a financial coach following your theory on money. Is this something you will offer down the road?
After seeing my unfolded clothes on floor for the past week, I'm gonna start paying someone to wash and fold my clothes :)
I tried Hello Fresh because I thought they had prepacked meals, but I still had to cook it up...laaame. I just want someone to dial in my macros and make it for me, then I'll be aaaaall set.
If you want to just heat up a ready made meal their is another service for that
Bought a tumble dryer recently. Buys me back a decent amount of time and a lot less worrying about laundry.
Hi Ramit ! Great video I bought your book loved it I bought 5 extra copies for my co workers to learn to save and invest . Thank you you have been a great teacher
It's my pleasure! Thanks for sharing my book
I agree that renting can be better than buying but your rental price isn’t the maximum you will pay. Moving costs if landlord decides to sell, kick you out or move back in. Rental prices go up with inflation where as the purchase price of a house stays the same for the entirety of the mortgage period
I really wish Ramit would include rent increases in the rent vs buy calculator. Of course some times it makes more sense to rent, but if you're going to be in your house 7+ years, it's not like rent is going to be the same (so the initial rent isn't the "minimum" you will pay which ramit keeps repeating, but he includes tax/ insurance increases on the buy side)
It might still work out to be cheaper, v but you have to include the hidden costs of both. There's also opportunity costs of renting which are impossible to predict
I agree. I am planning to purchase an affordable inexpensive cash bought home for my daughter, perhaps even with an HOA attached, which is a hell of a lot cheaper than rent increases, 35 years from now. To replace a roof for $28,000 is due able, as once or twice in a lifetime this may happen. Rents will continue to skyrocket as they severely have been, and she will not have enough funds to survive.
Great video, always helpful to give out and receive tips. To add to this, for entrepreneurs, understanding the Lifetime Value (LTV) of a customer can drastically change how you invest in customer acquisition - it's not just about the initial sale but the long-term relationship and revenue. Keep an eye on your customer acquisition costs (CAC) compared to LTV for sustainable growth.
Buying back time is a golden egg I have been relying on more and more over the years. Like if my job/specialty is X and I have to do Y, despite me being capable of doing Y (unless a hobby), am I losing more money by trying to do Y? As in, if I can do a thing rather than pay someone to do it, but takes me longer and in that time I could have either generated more income that I am "losing" or was able to enjoy the time with friends and family, then it's a no brainer.
Great video! Watching it in Guatemala. Thank you
I hate spicy food and never use black pepper but I LOVE Ramit's advice!!! Ramit's podcast gives me all the spice in my life that I need.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
If you are thinking of investing in the stock market and you are not well versed, its advisable to work with a financial advisor who is an expert to guide you through the process. this way you could make more profit with less risk
Ramit, what’s the brand of shirt you’re wearing in this video? I like the look. Gotta start building my rich life wardrobe
What are your inputs on paying off an investment property? Thanks inadvance.
If I rent out my home (apartment) and live somewhere else, and I still have mortgage for that apartment, do I list the mortgage payments for the "investments" proportion in IWT's conscious spending plan? Or what? Thank you ❣️
Love your approach - just starting to try to separate from my % financial advisor.
You mention all the low cost investing options in USA but do you know the best ones for Canadians??
My advisor has me in over 100 positions so to simply this mess is going to be a challenge!!
Appreciate the time it might take you to answer this question
Kind Regards 😊
always glad to see your projects, you never disappoint. clearest concise.
Don’t listen to the negative comments. One thing I know is that There are people who will always like what you do
I have thought of the buy vs rent for years now. I bought out my ex when we got divorced "for the sake of the kid", and I feel like I've been house poor ever since, even though I said I'd never be house poor. Now my equity is way more than the single capital gain exemption and the realtor fee would be so much... seems like it's better now to stay because of what it would cost me to sell, and rent here in HCOL area is so high. But I'm now dealing with high maintenance and repair costs since I've been here so long.
Thank you Ramit!
I love to splurge on travel and stay at beach resorts. Fresh omelets and coffee in the morning, snorkeling and swimming in the ocean, tanning, and fun nighttime entertainment.
After a year of ynabing, I really can’t tell how much my savings rate is because the line between saving and spending is so blurred. What do you mean by ‚saving‘? Keeping money to spend it later? How much later? Tomorrow? Next week? Next year? In retirement? I will spend all of my money at some point.
I love Ramit!! He is so brilliant and funny too 😂 great down to earth, clear advice! DAVE RAMSEY listen up!!! 😅
I love that he has advice for people that are already rich!
Like bro… I have to do my own laundry wtf?
But for real. Those are goals 👍
If you wanted someone to handle your laundry for you, I bet we could look through your Conscious Spending Plan, make a few changes, and outsource it. You can choose where to spend extravagantly and where to cut costs mercilessly
Please we need more videos on buying a house and how crazy it is
It all comes down to which house you buy. I've bought over 200 houses and made 30-200k net on almost every single one. Buying luxury homes is often not profitable though. To buy, you need to be willing to live where the deals are for awhile until you get RICH from it.
Your 6th point on passion should be discussed with every high school and college student in the country.
That TCO also counts for pets, because you also pay for shots, vet visits, food, and a bunch of other things. Getting a pet is a double-whammy: you have the emotional impact of Fluffy, but also the emotional impact of the money, and the surface-level cost of the pet is just the beginning.
14:47 😂 Best thing I've seen today that was so unexpected, luckily i don't think it's spicy, so I'll stay subscribed!
Hi Ramit I want to invest in index funds. Do you have a link on the funds you recommend? I called Charles Shwab and guy said it’s all online. I can’t seem to find a way to do it online though lol
Hi from Mexico, I'm starting to apply the advice from the video 😅
Great video, Ramit. Quick question. What hoodie are you wearing at 15:24?
I have a longer question of particular quality clothing brands you'd recommend in general, but if you don't know offhand then no need - thanks!