Money Expert Reacts To The WORST TikTok Finance Advice
ฝัง
- เผยแพร่เมื่อ 10 ก.พ. 2025
- I'm the host of Netflix's money show “How To Get Rich” and the author of a bestselling money book that's sold over a million copies. Today, I'm diving into more financial advice from TikTok. Let’s see what’s good and what’s dangerous advice.
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After following your approach I’ve gone from no savings to 10k in a year 🎉
congrats! god damn i love to see it
So proud of you!! That's amazing!
@@lowlowseeseeWell done! 🙌🏽
May I ask what specific parts of the approach have helped you? I am in the same boat with no savings!
Automation is the key
I love that you started investing at 14! I taught my daughter to invest 30% of everything she gets at age 12; I've also donated $100 p/mo to her brokerage. Between the 2 of us, she has just under $10,000 invested at age 14. She'll be financially free by the time she's my age and I couldn't be happier for her.
Love that
Good job
now to teach her ethics and that she does indeed have privilege with this money and not let it go to her head.
Good dad, that's what you are. I'll be helping my son with that soon. Thank you for the inspiration.
I am doing the same with my kid as well , she’s 4. Can’t wait to help her understand this process
28k in my savings at 18 years old, all from working fast food, now looking to invest after seeing your videos!
28k at 18??..lmao 😮 great
Invest it. Invest all of it, but in something stable like QQQ (and keep investing more as you make more making sure to maximize things like a Roth IRA to minimize taxes). Do NOT touch it for ~50 years and you will be so ungodly rich.
Put your money in the 2 Funds for Life
S&P 500 index
Mid Cap Index
Enjoy the ride
Came from Africa. Now a millionaire
Great job!
Just stay the course, invest in the low effort SP500 index funds, and you will not only retire early, but retire early AND rich. You'll also keep up good wealth building habits that will last you a life time.
But wholly shit, that's a lot of hours for someone at 18.
"Guess what $750 dinner [divided by 800] is?"
"Like $5?"
Jesus Christ
And they wonder why they are not rich. 😂
😂😂😂
I know right? 😂 1200$ iphone is equal to 1$ something, so 750$ should be 5 times that!? 😂
My expression when I heard this: 🙂-->😑
Honestly I think she went from calculations to then thinking what a low cost meal is midway. That's just my impression.
One thing I have realised from binging on Ramit's videos is that Americans make a lot of money, and they also like their debts
Yes, but rather, they like to spend money, and having no money is not a barrier - just put it on credit.
It's basically compounding, but against you.
As a European living in Australia, I also find that Americans have much higher incomes, but also much much higher expenses. Rent, healthcare, everything is just insanely expensive, so those higher wages don't tend to get them very far
@@sophiagray3191 That’s part of it. We 🇺🇸 earn higher wages but we’re also responsible for more of our own transportation, healthcare, education, retirement, and so forth.
We also have higher expectations for our lifestyle. Homeownership is a big one. As alluded to around 10:00 our norm is that we move out of our parents’ house almost immediately upon becoming legal adults. We expect that we’ll be able to buy a property eventually, and our average home is 70% larger than the average German home. For a significant portion of Americans, large detached homes in unrealizable neighborhoods that make us reliant on our single-occupant vehicles are _good_ things. We’ve _earned_ those by being such hard workers.
I grew up so poor it sounds like I'm making it up when I describe it. I had it all- scarcity mindset, living paycheck to paycheck, the crab bucket. After a year of watching your videos I finally understand finance. Money isn't some ephemeral uncontrollable that slips through my hands like sand. *I* control it. It's predictable, reliable and best of allll it's boring. Blissfully boring.
Can't thank ye enough for the videos and the education. I hope your blessings are many.
This very video made me start investing. I literally finished it and went straight to my computer, opened a brokerage account and threw a $100 in there as a start, and made it recurring, monthly. Thank you so much. Also, just subbed, too.
i only have 1000 bucks in savings but im low income and i just found ramit in feb lol. next year i will have much more.
Keep at it, you don’t realize how much and how fast it adds up even if it’s a small amount
You got this!!! I'm a newbie also
keep going!! A lot of folks don't have even that!
Keep at it. Small steps every month add up. I promise, they will add up.
I started following your channel this year and have already saved $20,000 personally. That 20,000 is split up between emergency fund, vacation fund and kids activities.We paid off both of our cars and don't hold any credit card debt. My husband looked into his retirement and realized it was not investing the money, so he started investing it and has already seen gains in his retirement. We also opened a targeted retirement account that is automated! 😁😁😁 I used to worry a lot about money and never thought that I would ever be wealthy as a middle-class person currently. But the future is bright and I'm happy to say that I am the most comfortable with money that I've ever been. Thank you, from the bottom of my heart, Thank you. 😁
Never gonna take advice from a guy looking like Walmart Logan Paul in the last clip
*crying laughing emoji* So true! X'D
Right? What about that dude says that he has his act together enough to give *other* people advice?
Walmart Logan Paul? You mean Logan Paul?
I'm in my late 70's. I'm doing ok but I could have done so much better if I knew this info in my early work years. To all you young people, please start investing for your future years. Please. TODAY.
Ok I’ll play along, I do find this interesting 🙂
Savings (HYSA): $187,000 (emergency fund and house fund -most of it will be spent in a few months)
Regular savings: $5,000
Checking: $10,000
Investments: $356,000
38yo, nurse anesthetist (in practice about 4 years)
You’re doing great. Good job.
Love this !
Thanks, I’m trying to be smart about it.
I’ve gotten this far while paying down almost $200k in student loans, can’t wait for those to be gone, that’ll free up about $1500/mo 😬
Way too much in HYSA. Better than cash, but you're leaving so much money on the table that should be in the market.
@@LLCOOLJARED1 I would normally agree with you, but the majority of it will be needed less than 6 months from now, I opted not to gamble with a house down payment when I’m earning 4.7% in HYSA.
“Adapt the principle and make it work for you.”-Ramit. Keeping this close for all aspects of life.
Today is Thanksgiving here in the U.S. and I wanted to express my heartfelt thanks to Ramit and the team. I really appreciate the openness of the guests featured on his various shows. I love thinking and talking about money and am pretty transparent but am not sure i'd be brave enough to expose my finances and life choices so publicly. But in hearing their stories, and Ramit's observations and advice there are some very valuable lessons for many of us. And youtubers also have some great comments too. So thank you all.
Thank you for watching and for the very kind words
Thank you for writing this! My thoughts EXACTLY. I am not sure I could be so brave either! But, I sure do learn a lot from all the good folks who are!
@@ramitsethinon-money question, who makes a good gray crew neck sweatshirt these days? Have been looking for a high quality one recently, but haven't found a good one. Yours looks nice!
Thank you for speaking about the pressures to own a home. I often feel terrible being one of the few friends in my friend circle that still rents apartments. I’m working on my emergency savings, clearing my debt and investing and saving for my retirement. With the current housing market, it would be a financial nightmare to attempt home ownership.
I don't want the expense and headache of a house either so I feel you/
27:03 who buys a $100,000 car as their FIRST CAR? 😂😂😂😂Insanity at its finest. Great video 🫡.
12:25 the problem with telling people about your financials is you are choosing to let those people into a deeper point of our lives. Not everyone has good intentions, that’s where trust goes out the door.
At 30 years old I had $0 emergency, $0 retirement, $25k credit debt, $40k private loan (to buy my house as not enough income to get a mortgage.) I was able to start saving for retirement by putting $50 a month in a Roth IRA. I got the Credit card debt down to zero by $35. It wouldn't be until i was nearly 40 that my company would have a retirement plan for the employees. Nearly 56 now and- though not ideal- if I had to, I'd be able to survive early retirement without sacrificing much... And that is with my still sitting at well under $1 million in total investment. I did not get to take advantage of compounding at all in my 20's and not meaningfully even in my 30's, but the build up is exactly what has saved me from a Social Security only retirement.
That's awesome and so many people can relate. I came from a single parent household with a mother who made a lot of bad financial decisions. When I first thought of buying a house, I invested heavily in my knowledge and turned my financial life around. When I met my husband, like a lot of people he had no financial education, deferred student loans, an underwater car note, maxed out credit cards and living paycheck to paycheck, but he was the only person I could see having kids and spending the rest of my life with. So I asked him to trust me and my financial education to manage the finances and he did. We got married when I was 32 and he was 38. His debt cancelled out my investments and we had a $0 net worth. We just celebrated our 5th anniversary and we have $0 consumer debt, car notes, or student loans, and $800,000 net worth with $550,000 in investments and savings. Now he teaches his family how to make more purposeful financial decisions and our 3 and 1 year old have more invested than the average American household.
@@asyamondsdavis5889 and main comment give me hope! I'm 30 but have about $30k in savings and investments but my bf who i see marrying has bad money habits but got rid of most of his cc debt after a conversation. I still am not able to max out Roth and am saving up for a house but i have hope now.
@@asyamondsdavis5889 Aww this is amazing! Well done & Congrats :-)
I was scraping by in my 20s getting through college and getting my career going. I had investments that I started when I was 15 but I had to cash them out to pay rent. This advice is pretty much assuming you're making good income early on or you're being subsidized by your parents.
What a comeback story.
I'll never understand why people use "money will be worth less when I retire" as an excuse to not invest. Do they not listen to themselves? If they were truly concerned about value decreasing, they would invest even more so they'll have more.
It's a coping mechanism. I used to borderline be that way. I grew up super poor and had a hard time earlier in my life earning a decent wage.
Basically you don't see a way out so you make excuses to feel better. As soon as I started having some things break my way and some of my efforts paying off I started making decent money and things suddenly started to make sense and I had no reason to make excuses anymore.
I really appreciate Ramit creating a space where we can talk about money. I really like his podcast because it allows me to compare what I am doing to others to see what works and what doesn't. I understand that you have to compare yourself with a grain of salt since everyone's situation is different but it helps me to see that I am not behind or stupid since I didn't have everything figured out by 30.
"That freaking wood smell that haunted my childhood" 🤣
Ramit, I feel you!!!
HAHA RIGHT! I now have a new rich life goal - never go back to Home Depot because I actually hate it. But I already am willing to pay others to do things I just do not want to do so it’s all good.
I live in downtown Toronto with a toddler. My hubby and I have 30k in savings (emergency funds) and 800k in our investments accounts. We’re in our early and mid 30s. Excited to hit our first million in the next 12-18 months 🎉
EDIT: $903k as of Dec 30 2024 🤩. Looks like we’ll be hitting a net worth of a million by April 2025 🙌
Love to hear!
amazing job im on my first 200k
Damn. That’s sick, congrats.
That’s impressive! I’m in Toronto too- have to account for high mortgages here which eat into net worth significantly.
Love to hear it, you guys keep it up and you are going to be wildly rich in about 20 years, like multi million fuck you rich
45 Male: In Los Angeles Ca
Net Income $8300 per Month/$100k Annually
Transportation Worker
(Recently within past 3 years)
$150k in 401k Company Match
$30k in Savings
0 Debt
CSP: 2 Bedroom Apartment Rent $1600
(20% of Monthly Net income)
50% Fixed Cost $4150
23% Investments $3800
10% Savings $830
17% Guilt Free Spending $1411
(Eating Out at Nice Restaurants & 2 Week Vacations during Holidays 1 week Thanksgiving & 1 week Christmas)
Wow that’s amazing 😁
Single?
No student loans?
That’s what has you ahead
Love it
Unless you want to be in your 60s and having to dig ditches or work at Walmart to sing for your supper, invest, invest, invest. The last thing any young person should want is to arrive at age 60 and broke.
You are so me. I need my weekly coffee and pastry sitting alone with my book in fancy coffee shop. I spend 2 hours and it’s worth my mental health.
Don’t forget to live while saving….. that’s my motto
👏🏿🙌🏿👍🏿💯
I am a Marketer (36yo) based in London, UK. I live on my own and have a side income with summer rental. I recently started rebuilding my emergency savings after losing my job in 2020. Subsequently, I renovated an inherited rental property and spent the last two years paying off my large reno debt.
HYSA cash ISA: £3500
just started investing in global ETFs : £500
Pension: £40.000
House reno debt: -44.000 EUR
If the last guy is so worried about being replaced, maybe he should stop leasing cars and start raising children 🤣🤣🤣
He DEFINITELY SHOULDN'T procreate 🤦
As a fellow white guy, if that's the attitude of other white people then it makes me glad to see white people "replaced" like that.
I’m a 53 year old recovering compulsive gambler. I spent my entire adult life blowing every dime I had. I entered recovery about 4 years ago. In that time, I have walked the straight and narrow. I live on a strict budget, that includes some guilt free spending as you recommended. I got lucky and started the best job of my life in summer 2021. First 100k/year income I’ve ever earned. I now invest as much as I can. In 2024 I invested 22k between my Roth, and work 401k, and saved 3k in my emergency fund. Total net worth is over 100k from just over 3 years of diligently investing, and NOT GAMBLING. I will never be rich, but at least I will be able to modestly retire in about 12 years if all continues to go well. It’s never too late to get it together.
Excellent 🎉
GREAT job!
Great inspiration. For you to turn your life around is an incredible model to yours kids and loved ones. And it’s great to read that you have been rewarded with a good life as well. It’s also very relatable to other people. Proof that anyone can do it!
I live in LA making 160k +/- 20k and cannot even think about buying a home. Starter houses are still $1.4m, condos are 700k+. This market is disastrous.
Hello there. Yout videos have inspired me to finally start an emergency fund. I put away $50 per week. I'm going with a 2-tier approach: eventually $1,000 in a designated checking account (yes, I know, but it's at my local bank, and I can have my money in minutes) for urgent emergencies, and once I accrue $1,000 there, I'll start a high-yield savings account for (eventually) several thousand more. That'll be for emergencies that can wait a few days for the money to hit my main bank account.
hey this is exactly what i did, can guarantee it’s a good idea! my main checking account is at a local credit union, i have a savings account there too but it’s currently empty. my emergency fund is in an online HYSA, connected to my main checking and can transfer funds w/in 2 days usually.
i currently have 6mo of living expenses sitting in that HYSA and am automatically sending 40% of my salary to it so it’s growing w/o much effort from me. this works for me!
keep it up dan, you’ll feel SO RELIEVED when you reach your target ❤
There's something called wisdom. And wisdom advises me that the whole public does not need to know what my savings are. The only people who should know what my savings are, are my trusted family and friends.
Ditto - Sometimes, private info stays private.
The same people who say $300 is unachievable to invest are also the ones spending like $1000 a month on eating out alone.
Or 1000$ on a phone ever two years
33, $1.18M across all. ~40k cash, no debt but live in VHCOL city. Managed to save 125k this year (~45% of gross income)
Income went from 150-275/300 in a year. Work full time and started a small independent solo business.
With all due respect, great job, but that’s not normal.
You’re literally literally in the top 7% top 5%.??
Pleaseee anyone young watching this LISTEN TO THIS MAN. I am turning 39 in a month and was always intimidated by investing and now worrying my ass off about retirement with the cost of living in my home state of NY. I wish i listened to guys like this sooner
33 year old Med Tech- I have $12.5k in savings, $140k split between my Roth 401k and Roth IRA
I'm a licensed advisor in Texas. I do the same thing when it comes to estimating costs I want to overestimate, and estimating returns I want to under by using the real. It helps to set expectations in a more reasonable light and serves to drive behaviors that will be beneficial in the long run. Great channel, keep up the great work!
27yo, web dev for a small company, so unfortunately not making web dev money:
- High Yield Savings - $4,000 (Was bigger but bought a house and spent quite a bit on improvements)
- ROTH - $18,000
- Regular investments - $15,000 (grows and falls drastically because I have quite a bit in leveraged ETFs)
- Crypto: $850 (Not taking that seriously)
- Checking stays at around $1,500 at minimum
- Every credit card I've used in the past few years has always been paid off in time, so banks haven't profited off of me for a while.
- On top of that every major flight overseas (I have family in EU) has been paid with points.
Started putting $100 a month in my kids investment accounts they are 3 and 1. Bought the book 4 Money bears book to teach them about the differences of spending, saving, giving and investing and how together is a powerful way to understand money.
I wish I had parents who taught me how to be good with money, I really had to learn it all myself and only really started at 30. But I hope I can show my kids the power of financial literacy
$1,200 iPhone is like $1.36 to her. Guess how much $750 meal is to her?
Like…. $5? 🤦♂️🤦♂️🤦♂️
We saved 30% down. 20% directly against the house, 10% for closing, moving, and repairs
Our closing costs were high because we purchased membership in the loaning organization that was able to finance farmland at reasonable rates.
I started listening to you specifically a little over two weeks ago. I do well with savings, finances, investments. I am fighting for simplicity. Thanks for the motivation. I know my net worth, I set up savings goals.
34M engineer: $35k emergency fund $295k combined retirement funds, $12k car loan left and no other debt, rent $2200/mo. Would like to buy a condo or house eventually but would need to save up a pretty hefty chunk for the down payment
20k savings (had 50k at the start of the year but decided to just pay off all my student loans so rebuilding my savings) and 150k in investments! 31 years old, occupational therapist! We lucked out and got a cheap studio during the pandemic. It has rent control, we've learned to communicate, and we have 3rd spaces so no plans to move. Ramit's advice to spend on things you love and cut everything else has hugely helped us. We don't really care about housing, but I like working part time, we like being able to afford taking care of our Mom's, and we like traveling. So we spend a very little amount on housing. We actually applied to his show but his book really helped us hone in our issues and overcome our detrimental money scripts. Anyhoo I think this is actually a thank you! So thank you Ramit!!!!!
We have a 9 month emergency fund - but yeah for most folks, I know it's not easy to save - but as a low paid peasant - I can say that it's possible! Don't give up
I got a concussion from that car advice. I paid $3500 for my Focus at an estate auction. I win.
maybe. because that thing is going to break down tomorrow lol.
@@lowlowseesee That's an idiotic thing to say. I assume you're one of those people that pays 10x what you could be paying for cars by buying a new one every year?
1. Get job
2. Live with parents
3. No big stuff like car, animals kids
4. Keep expenses same for 3 to 4 years and invest heavily in world or us etf
5. Don't look at it for at least 30 years.
6. Retire early or profit big a few yesrs later even and be rich
@patdennis2586 then either live in a cheap appartment alone or better together with a friend. Gonna get you far if you can do that for a few years.
@@patdennis2586 then they’re lousy parents and shouldn’t have had kids. Ain’t no “mooching” going on. Boomers need to appreciate the cost of things nowadays before saying dumb things online and embarrassing yourselves.
@@patdennis2586 My mom loved having me live with her as a young adult. First: she doesn't hate me and actually likes being around me. Second: cleaning, cooking, grocery shopping, yard work, and other house chores become easier when split between more people. I didn't pay rent, but I still contributed to the household and was willing to pay a reasonable rent if she wanted it. I saved her plenty of money just by sharing the space and doing my part to maintain it as well as acting as a free house-sitter and Uber driver, but it was obviously not just about the money for her, as my mother.
@@stellacalder5023 congrats. I did pay rent, but that was ok too. I never really wanted to be in a shared household with people i didn't really know. I already knew my mother and we got along well so it was a win win.
@@GetGwapThisYearI think it depends on the situation and how the parents want to live. I see no issues with a parent not wanting their 26 year old kid living with them anymore if they don’t have to.
I talk to my spouse about advice from Aunit Suze and Dave, and cousin Ramit and Humphrey. All been helpful over the years.
HYSA (emergency): 6.5k
TFSA: 4.3k
RRSP: 42k
Working on building my Emergency Savings up to 12k, and my debt down to zero (except my mortgage, that's lower priority)
Me: 37 years old, 14 years in public service (so got a pension building as well).
I got my daughter starting to invest 10% of her income towards retirement as well, and she's already got it built as a habit!
I did almost exactly this while living with my parents. $300 was nothing without bills.
Compound interest is wild
I am 42, started investing late, been investing for 2 years now, I put 1k a month in now into dividend stocks and a few etfs, I can see it growing now, it is slow but will see the benefit as the dividends compound.
I agree with your advice. That said, everyone who waxes poetic about the dream of renting is on the other side of the fence. They have never seen their rent go up 10% year after year, meanwhile hearing about home ownership and stabilizing your shelter costs is totally overrated. It's variable on the city and region, unfortunately.
As with anything, I think it's most a matter of what's practical for any given situation. The issue is homeownership at all costs is pushed as the American dream, so I think many people's perception is skewed. If you live in a major city with strong tenants rights and decent rent control, your living costs are more or less stabilized. If you live in a lower cost of living area and plan to stay there for a while, I think homeownership makes more sense. If you have kids, there are a whole new set of factors to consider.
I have $14k in my emergency fund. Just about 3 months of expenses
That's awesome man
You spend 4,5k every month? That’s quite a lot
@@ruinerblodsinn6648 not that much relative to my income
Wife and I are both 29 in the Midwest with a 1-yr old. Both college educated with undergraduate degrees.
We have $41k as a 6-month emergency fund in a HYSA.
We keep about $10k in our joint checking as a minimum that we have decided we feel comfortable with (all paychecks go in automatically, all payments are automatically pulled from this account).
We have about $10k in a 529.
We have $20k in a HSA.
We have $180k across our retirement funds combined (ROTH, 401ks).
We have no individual brokerage accounts right now.
We have about $130k of equity in our home.
We have no debt other than our mortgage.
I think we are reasonably above average for our age and in upper class for our area, so we may or may not be a good comparison for the average person.
I've been saving since 15 and I'm now 52 and no where near $1M in savings. I've never stopped saving whether I had $5 or $500 a month. But what DID happen was living through 2 market CRASHES and recessions which nearly wiped me out both times. This is to say nothing is an absolute so don't beat yourself up if you can't do $300 a month, do what you can because it's better than $0 👍🏽
Thank you, Ramit, for sharing your social attitudes (showing the racist/replacement guy’s other clips). You show that you sincerely care about others.
Another phantom cost of homeownership: you will most likely have to own a car too
You can buy apartments in cities. But they will probably be at least as expensive as a nice mansion in the country side ;-)
@ and the HOA fees cost as much as the mortgage
I just LOVE Ramit’s videos, and particularly the tictoc reviews. I laughed and laughed at the “3-yr-old steak tartare” reference as I recalled being out at a Japanese restaurant with my son’s family, and the 9-yr-old boy asked for the tuna sushi appetizer with “ponzu and rayu sauces on the side, please.” WHAT!? “And I’ll just have misu soup and shrimp tempura, thank you.”
that car dude was pure idiocy lolol
So ladies, if you see that guy with the car lease, swipe left.
My first car cost me 3200€ second hand. 8 years old Peugeot 106 which I drove for 12 years and could sell for 1500€. It's probably still running amazingly well
HAPPY THANKSGIVING! Thankful for this content 🤑
Happy Thanksgiving!
My car was $5000, less than 100k miles, takes my kids and I around town just fine, got TAGGED so has residual spraypaint on it, and just…yes I look dumpy. But we have 30K in savings, 50k invested and debt free. You wouldn’t know it when you see me in my minivan 😂🎉
I'm glad he mentioned the cost of insurance. Home owners insurance can get very expensive, and often, the insurance rates increase annually. It depends on the area you live in and whether that state forces an increase. It also depends on the dwelling limit of the house in question.
True I spend 50% of my income on housing and it’s a good thing I have agoraphobia. Can’t afford to leave it
That thinking of "who has 300 to invest at 18" and the other statements are why I feel so crazy now that I had thought of it that way a decade ago. Would have been awesome if I'd done my proper research back then like I do now.
I am 19 years old in one month I turn 20 years old. I was able to save 15k, and I started to invest $400 a month. I was able to do it because I still live with my family, and I have a used car (cost 5k all pay in cash) I only pay for insurance and gas.
You are doing great! Keep the used car as long as possible and live at home as long as possible!
Fantastic! You are outpacing 90%+ of your peers. Great forward thinking!
@@SixthSenseSynesthete 😊 thankss!!
@SixthSenseSynesthete thanks! 🙌
If I live with my
Parent I would save a lot too
Ramit knows his $h!t! he reminds me of how i was raised with great parents! if you follow his advice and wisdom you will not be led astray! Ramit has your best interest he is a good man with a good heart! God Bless you my friend! Keep spreading the good word!
@3:23 I almost spat out my coffee. Props to you and your video editor
Yep Australians sometimes have "a lot" of savings, but our houses cost a ridiculous amount, and our individual income tax rates bleed you dry
When I was 18, I made a salary of 26,500 and saved 6% or $132/month in my 401k.
Whats it at now?
The most hilarious part is the guy saying that there's no interest in a car lease. The "Money factor" or "Lease Factor" is the interest paid on the lease payment. There's nothing quite like a "fake expert? Thank God for Sethi! Finally someone checking these fake gurus.
i have 5k (planning for 6k) as a single 28 year old living with my parents, which is close to 12 months of my living expenses (but that money would also cover housing if i can't live at home for whatever reason so closer to 6 months). i have roughly 300,000 in all my investments - because i was privileged enough to live at home my entire adult life with parents who paid for college, and i maxed all my retirement accounts as well as investing a lot of my income after that.
I follow what I call the "3-Rule". 1: Pay at most 1/3 of your household income for your living space (rent/loan+additional costs like electricity, heating, internet etc.); 2nd: If you buy a house or condo, have 1/3 down payment. 3rd: Have 3 times your household income in a savings account that you can access immediately for emergencies, anything above that can go into investments. This rule might sound conservative, but it has given my wife and me a nice condo, a nice garden, a nice car and a nice boat (nothing luxurious, but really nice), without being burdened with debt.
I agree with him that if it's your first car you should lease it. You can lease a brand new Toyota Corolla for like $250/month. I bought a used car as my first car, and it broke down a few times, ending its life needing a new transmission which cost more than the car was worth. The payments on that car were almost double what a lease would have been, not even counting the repair costs.
I enjoy these videos man, but I really struggle with the disparities between the US and UK. Our cost of living compared to rates of pay are ridiculous, and these numbers are insane. 😅
Ramit…buy a car, rent a house?
So rent an asset and buy a liability? I’m not rocking with this at all.
$300 to $1.8 mil. My kids are more than halfway and they’re still teenagers.
$50 a month since birth and my 16 year old has $21k. My 13 year old has $15k.
They mow lawns as a side hustle and started doubling that contribution to $100 a month.
I gave them a start in life. My brother gave his kids nothing. His 18 year old has no job, no money, and no motivation.
Regarding that first video, I remember a business "anecdotes" book from when I was a teen that told a story of a CEO who gave up smoking cigars. I can't remember all the details but the punchline to the story was not that he quit smoking to be healthy, but that at his "hourly" rate, the 30 seconds he took to light the cigar cost him $6000 or something. (Obviously his income was mostly passive from the investments in his company, but it is the same concept as the video referencing Taylor Swift.)
If I hadn't gone to college and gotten myself completely buried in student loans for decades, I easily could have invested $300/month at 18. But I just didn't get it at all at that age. At least I can work on catching up now.
Actually, let people who believe in Great Replacement Theory take bad financial advice.
❤
34, oil and gas industry. $80k In cash savings. $400k in retirement/brokerage accounts. No debt except mortgage. ~$350k household income.
I have only emergency fund in my savings. The rest invested.
thats dope but I hope you are not oversavings
+1 on the fast talking on those videos. I've stopped so many videos because the delivery was overly fast paced and neurotic and instead of receiving onformation, i received anxiety
I hate literally the same reaction when my mom kept hounding me to invest in a 401k: "I need that money now, not when I'm 65". Wrong, I had to adjust my budget so I could invest. Having some money as liquid money is alwasy a good idea. But the bulk of your money should be working for you in some way, whether stocks, property, or whatever. It's like having an extra house and not renting it out because "I might need that house..."
I don’t keep much in savings. I put most of my cash in a brokerage and periodically invest. But I don’t keep much in an actually bank savings account. I like this strategy because it prompts me to invest regularly.
automate that investing. trust me and trust Ramit on that. periodically investing is not enough
@ I imagine it is when my periodic invest is on average 3 times a month.
I think that your basic premise is that everyone has the discipline and the desire to save and invest properly. If you do not, then you should consider “forced savings” like a mortgage, automatic withdrawals, 401k or other investments that require you save. For people like that and me, these things saved me. Maybe not the most efficient investments, but they worked.
I just want to say that since finding you I've completely changed the way I think of money. I used to pay my bills and the rest would be for me as long as my account had over 1000 I'd be fine for emergencies, right? The idea of changing bills to come out on the same day, paying yourself before spending, thinking about it in percentages, and then automating all these payments makes saving and life in general so much easier.
I have $5k in savings so far. Lowered my savings amount for now to work on high interest credit card Debt.
Thank you for sharing! I enjoy these episodes.❤
Starting as simple as $5 a week or every two is helpful. Seeing the growth will give them more incentive to add more as they make more and not touching it. Having it grow and what you contribute grow as you do by making it a percentage I think is the key for people to get started on this path. I wish I would've known and started when I was younger instead of at 37. Hoping to get my niece and nephew to get started now
I like these videos;especially the lady’s question about savings👍🏿💵
The "what house can you afford" guy is INSANE. My mortgage plus taxes and insurance is ~6% of gross. Before our salaries were higher, it was closer to 10%. Every mortgage lender said "33% of gross is the rule"! Great advice to avoid advice from lenders!
I recently saw a YT short from someone who just bought their first house for $179k. They put down 3k. Yes, 3k, not 30k. And that did not include the land the house was placed on.
After watching many financial advice videos, I can now see how dangerous that deal is. Thank you for putting out the information in an easy-to-understand way :)
Alternative just don't get a $100K car, get something you can reasonably afford, preferably bought outright with no finance.
Married couple 33 years old with two kids - $28k in savings which is 4 months of emergency fund for our fixed costs, primary residence and rental property. We are rebuilding to 6 month of savings after a sudden loss of a job a few months ago. We have $150k invested which is 2x our gross annual salary.
At the 17:26 marker in the video, there is no discussion of Mortgage Insurance - Typically for a conventional loan with less than twenty percent applied, you will have to secure this thereby increasing the monthly for the additional coverage.
Pro growth pro investment pro moderate enjoyment pro people. Love to see it man. Great job
Kudos for calling out the racist idiot, clearly he’s out of touch with reality if he thinks someone’s first car should cost $100K 🤦🏻♀️ Also, I saw a TH-camr (LifewithBu) mention on her page that she is reading your new book!! She told viewers to go out and buy it 😊She creates content about doing gig work for Spark. Still a fledgling channel, but she is delightful to watch and she works very hard.
I tell people all the time our monthly car payments and our mortgages are less than 13% of our income. 🤷. If I told you the actual cost you'd say I was stupid! 🤣
So happy I found this channel! I’m a 18 year old starting my career and really want to start in investing.
28yo Game Developer in Seattle:
$187k in my 401k
$11k in personal savings (big purchase account such as home improvements, new car, etc)
Mortgage locked in at 3.125% as my only source of debt
Could grow faster if I made some adjustments but I'm pretty happy overall
33 years old. Married.
Household income over last 5 years ranged 100k-150k. Zero debt including 400k paid for home.
40K in savings. 100k in investments. Didn’t start investing heavily until 30. It stacks quickly when you can max out two Roth IRAs.