Today marks 5 years since I uploaded my first video! Thanks to all that have been here and watched. If you're new - subscribe! Love you all, thank you for the support.
Congratulations! 🎉 your videos are the best! Thank you to you and your team and all the amazing content - it’s changing lives and generations! let’s dance to your video outro music. 😄🥳
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
Yes, you’re right. I am 84 and not very wealthy but I’m certainly not poor. I live on $34,000 a year and I’m loving it but I didn’t start being educated financially until I was 78 years old. So thank you for being there and adding that line toward me in your number seven.
Humphrey, I have been following you for quite some time, and I must say you have changed my outlook on personal finance. I cannot thank you enough! God bless and cheers to another 5 years! 🎉
Only thing I found wrong, is the stealth wealth. The clothes that they wear are still extremely expensive. 300-400 dollars sometimes. They just look and are meant to look really simply and casual. But to them and compared to the clothes they could afford. Definately super cheap
You are so right. Rich people keep clothes longer and do not waste money on fad clothing. They also take care of their clothes. I am thinking of older relatives I have.
Also houses. Most rich people live in expensive houses. Maybe not an all out mansion but it is at least an average to above average size and in a great area so price per square foot will be high
I will forever grateful to you,you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Sophia
There's a difference between delayed gratification and waiting until you're 65 to enjoy life, you're only young and healthy once need to live sometimes
I held your worldview most of my life. I focused on enjoying life when I was young and healthy. Now I'm 53 and have very little savings or assets and I'm petrified about being retired and destitute. Don't do this to your future self.
Balance is key. It's important to save for rainy days while also enjoying the present. Tomorrow is not promised, and you may not live to see 50. I know a few people who are extremely frugal, saving everything for retirement. They never owned a brand new car or took their family on nice vacations to create memories with their kids, only for cancer to take them before they turned 60. It's so sad.
I'm 43 now. I've "lived". My last date told me she can't believe what I have seen and experienced already. (She is 12y younger.) Most of these experiences were fun at the time and lead to other experiences that were fun at the time, but none actually achieved anything for me. Yes, my live would have been more boring, but hadn't I spent that money (and unfortunately I'm an all-in kind of guy with my hobbies), I could probably retire right now. And that freedom so early is priceless. I've done a 180 now and restarted investing as much as possible with a savings rate of 62% currently, to have a chance to at least have some earlier retirement than 67 (retirement age in my country). If I'm lucky I might be able to do it at 60 if I can keep the savings rate up like that.
@@TheBazino my brother knock on wood but we are all one doctors visit/checkup away from being on borrowed time and if that were the case you would not regret all the memories you made, nothing is guaranteed esp as you get into late 50's -60's
I've been a frugal money hoarder for most of my life, but at the same time, I've always fantasized about having an extravagant, flashy lifestyle as well. So, I understand both sides of the spectrum. Perhaps one day, I'll have the courage to splurge on my dream supercar. As much as I love seeing my portfolio grow, I also don't want to be that guy that never spends a cent of it and dies prematurely out of nowhere or loses it all to an unexpected lawsuit.
I feel you. It's not admirable to spend all your money like a rock star and not prepare for the future but it's also not admirable to save so much that you never get to enjoy life. Everyone needs to figure out for themselves based on their wants and needs how much they should be saving but it's safe to say that the vast majority of people are not saving enough.
You may find that your view changes as you accumulate wealth. Now that I have a net worth of $14 million (30% in stocks and 70% in mortgage-free rental properties), I'm just happy to have more financial security, be able to go on nice vacations, and give more money to worthy organizations. I don't care about an extravagant lifestyle. I drive a 10-year-old Toyota and purchase some of my clothing on eBay. I always lived frugally and still maintain some of my frugal habits. I don't do any social media and couldn't care less if people think I don't have money. Life is good.
Humphrey, I would like to congratulate you on your anniversary of content creation for 5 years! Keep up the hard work because your content is top knotch!
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
That sounds reasonable. I've been consulting with a financial market expert for two years now, and I've built a diversified portfolio worth six figures through stock investments. However, I aim to diversify even further this year.
Kathryn Denise Isernhagen, my CFA, is a highly respected professional in her field. I suggest researching further into her qualifications. With extensive experience, she offers invaluable insights for those looking to navigate the financial market.
My goal is to put myself in rich people group and be low key about it. Yes, some rich people don't brag about their wealth. They are more focused on being success privately and not showing off. If I was rich, I would keep a low profile.
"Delayed gratification" occurs in many ways. e.g., in a large parking lot, as at a shopping center or a supermarket, I nearly always back into a parking space, even though it's much easier to drive into the space forward, as the vast majority of people do. However, it's MUCH easier to drive out of a parking space than to back out of one, when you might have a car coming from the right, or from the left, or people walking behind you when you want to leave. Driving forward into a space is a form of INSTANT gratification, whereas backing into a space is DELAYED gratification, and the reward for delaying gratification can be huge, depending on how busy that the store might be on any particular day. Money works in the same way. Enjoy it a little now, or enjoy it much more later!
Very good points! Also I would say that lower classes tend to be obsessed with money because of the Idéa that consuming is the only way to climb the social ladder. Whilst the people who have money naturally values other things in life that has deaper meaning and is free, like free time, relationchips and nature.
"It's a misconception that individuals with substantial wealth tend to gravitate towards "cheap cloths" $50 outfits. It may not be a flashy, ostentatious attire. In reality, many opt for a classic, timeless, and unpretentious style, albeit with higher price tags. Their clothing may not cost thousands of dollars, but it certainly wouldn't be a $10 shirt either. Similarly, their choice of footwear often exceeds $200 or more." Pants priced between $70 and $200. Etc
I like your point about racing to 6 figures as fast as possible, the thing that struck me most about that is that when you hit $100k, you can have a pretty sizeable emergency and it’ll not only be completely covered by what you have on hand, but very likely completely or mostly covered by what you make in market gains that year. And I experienced that firsthand a few years ago right as I got to about $130k we suddenly needed a second car and it never even felt like a bump in the road much less a real emergency because it was more than offset by what our accounts made that year on top of adding to them
When you have a fully funded emergency fund you sleep so much better. Having something like your A/C unit go out becomes a nuisance vs a crises. So many people use credit cards as a safety nets vs saving up for stuff.
I’m so glad I started managing every little money movement me and my wife make. I have this huge excel that tracks absolutely everything of what we do. I know exactly everything. How much we’re worth. How much we save (50%!). How much we spend. Combine that with investing and charting as much as I can and setting expectations for the future with said charts. It’s really amazing. Just found out your videos and love them! Instant subscribe. One point that you didn’t mention in this video is: if you die at half time and you just focused on saving you might not enjoy life enough, so there’s a balance that one needs to accept :)
That’s been my mistake! I’ve been watching the scratch golfer videos, trying to get six pack abs.. now I’m 30 pounds overweight but my putting game is on point
At the start I guess but I mean I know people who save away over 3 million a year but are covered in diamonds and have the craziest cars. It’s not really rich or poor at a certain level it’s humbleness
I really enjoy your videos even if a decent portion of your advice is not applicable to me since I don't live in the US. I hope you keep educating and helping people.
I have a 7 figure net worth and my newest vehicle is a 7 year old Toyota Prius that I bought used and I don't count my house as an asset. Why ? Because a house COSTS you money, it doesn't make you money. I use the Robert Kiyosaki definition that there are only assets and liabilities. Even if you own a house, it still costs you money every year in maintenance, taxes, insurance, etc. If I stop paying anything on my stocks, they still are making me money and no one can take them from me. If I stop paying anything on my house, the Government is going to come and take it from me. Now how is a house an asset again ? IT ISN'T !!
@@brock5946 no it is not and here is why. You buy your home 30 years ago for $125,000. You pay $130,000 in interest over the 30 year mortgage at 5.5% You pay $40,000 in homeowners insurance You pay $112,000 over 30 years in maintenance (2% a year average) ------------------------------------------------------------- Total cost $407,0000 over 30 years Your house is worth $250,000 = Net loss of $157,000 Let us say your house tripled in those 30 years and is worth $375,000 in 30 years, $407,000 - $375,000 = a loss of $32,000 Your house would have to increase by 326% for you to show profit and you only get that profit AFTER you sell the house. Does this explain to you why I don't consider a home an asset now ? I realize we have to have a place to live but also why I don't consider a home an asset. And even after you own your home, it still is costing you money in taxes, insurance, maintenance, etc. I don't call something an asset unless it is making money, ie stocks, bonds, gold, etc. If I buy a 1 oz. gold coin it doesn't continue to cost me money, it doesn't cost me anything. If I buy a share of Wal-mart stock, the stock pays me dividends and the stock appreciates and I don't keep paying for it. (Yes I realize there is a small cost for keeping that stock but over all it is a very tiny cost and the overall return is positive.)
Great Point but No, it’s still a liability because it takes money out of your pocket Mortgage PITI , repairs etc. It can be a good investment over renting, and it’s also a good investment only when you sell if you have equity. Most people when they sell forget to calculate all the payments they made along the way, to actually figure the true net net, they’re walking away with.
No you don't need money to have a certain mindset. My wife and I started out investing $2.50 a week and now have a 7 figure net worth. The only mindset you need is to educate yourself about investing, learn what an asset is and isn't, and don't make excuses about your decisions.
8:09 another thing is hedge funds and alternative assets like private debt and private equity funds. These funds generally have higher return but also low correlation to each other and the S&P500 so while a common folk's best bet is buy investment houses and stocks they will get crushed in an economic downturn whereas a multimillionaire who owns a diverse portfolio of private assets will grow faster and probably have 1/10th the losses of the S&P500 in a down year
It’s really easy to save the vast majority of your income when such a small percentage of it is needed to cover bills and necessities. My household has a fairly high income and when we bought our house, we didn’t even need to cut back our discretionary spending to afford the mortgage payments, because our discretionary spending was pretty much negligible compared to our overall income or mortgage payments. Cutting back would have made almost no difference. Granted, we are not THAT rich to be able to buy a $2million home on just cash but even so, we already find it really easy to put $6-8k into stocks every single month. And yes, our focus is very heavily biased towards buying assets, but we have not really had to give up much either. We still travel and buy what we want.
I've recently come into an inheritance of nearly $900,000, i'm being directed towards the stock market. What risk management strategies are recommended to navigate and safeguard my investment in the market?
Explore the option of engaging financial advisors, estate planners, or tax experts. Their specialized expertise can assist you in navigating intricate financial decisions.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
A lot of those who have wealth in the first place tend to come from upper middle class or even wealthy households where the parents started college funds when they were born. So, if you are poor, don't have kids. Only have kids if you can help them save for college and if you can give them the tools to be wealthy when they grow up.
You can do everything right, but the government rewards poor financial choices. They forgive loans, grant better rates and provide assistance to those who choose to spend freely. They should be rewarding and educating people on how to save and live below their means.
Great content, keep up the good work! Delayed gratification is so tough but so valuable. The idea of building knowledge goes all the way in history as building wealth, and it certainly shows. Excited for the next video already!
Not so much "Trust" the financial system, but Understand how financial system WORKS! I was 29 when I was finally out of debt and had money to spare and play around with. I bought stocks, but 2020 was around the corner. So I watched all 12k investments become 8k as soon as the pandemic hit, and left it because I didn't understand it. Additionally, I really didn't know what stocks to choose, or what an IF/ETF fund was then. Now I do... know it's about sharing the knowledge to family and siblings, and who ever needs help with it.
Please definite “rich” first. If only the level of Bill Gates is considered Rich. You are right. If a 5 million investment qualifies one as rich, then many your points may not apply.
Only because someone is wealthy doesn't mean that he has taste and knows how to choose good looking clothes. One rich person is more into art and this also could reflect in an extravagant outfit and another person might be more into maths and feels more comfortable in conservative clothes. Sometimes it is as easy as that.
Humphrey, thank you for continually sharing top-quality info and videos! I would also love to hear your advice on what someone can do after maxing out all the generally-advised accounts (like 401k, IRA, HSA, 529, etc) - what would be great next steps ideas before investing into taxable accounts? Thank you for all your hard work and generosity. Your content has changed the game for financial education!
Congratulations on 5 years. We are striving to build out investments and have shared the same small sedan among our family of 4 since the beginning of 2023. It's delayed gratification for sure, I would love to have a minivan but I believe there are better things on the horizon. 🙏
Nice video. There is one thing where my personal experience differs from one of your points: wealthy people do have good credit score, but that is because they use credit cards as they are an easy way of paying, and pay them off. I have never known any really wealthy person who uses their good credit score for anything personal. Smaller purchases, like a house, they usually pay directly. Whereas for bigger purchases, like a company, they tend to use separate financial constructs for the credit. If you want to become wealthy, the credit-score is relevant obviously.
There's something I don't understand about the graph about assets that make up wealth - for the $10k, why is "primary residence" even listed there? Wouldn't most people at that level be renters and not homeowners?
Hello! Appreciate the channel! I’m curious, if you have a 401K, do you also have to maintain separate investment accounts? Or does that just depend on your personal situation/goals? I don’t care about becoming insanely wealthy, just want to be financially secure in my old age.
Congrats on your 5yr milestone HY! Most of your content revolves around younger, and likely single individual investment plans. Would you create more content around young families with children, expenses related to their private education, tutoring, savings for future property, etc. You know what the typical Chinese family does for their children 😅
Absolutely agree. These people with flashy clothing, jewelry, cars, actually have no money and no financial literacy. They buy on credit or borrow someone's house or clothing or car for their videos to fool people. Many wealthy people are low key (eat regular restaurants, take subway, use Uber, dress down; no clothing with name brand labels. or at least you wouldn't know it..). Anyone can save, even the person who is a maid. Just takes discipline and financial literacy. Case in point, a friend started landscaping seven years ago, after losing his blue collar job due to downsizing. He said he'd never work for someone again. People laughed that he became a landscaper. He'd start early morning and worked every day, except Sunday. His wife works as a nurse. They lived very simply and saved and saved. Three years ago, they moved to a beautiful, custom made home and purchased new cars in cash. They are debt free.
Education should be with caveats. There are poor people who have student loans. Formal schooling can help, but only if it does not leave one with debt or a disreputable degree (bad major, bad school, poor network, etc.)
You forgot to mention that a lot of them also open up businesses and write off their personal expenses as business expenses and many operate in debt. They don’t own anything until they do. Much of it are assets but cannot easily be liquidated. The value of things are constantly moving as much as the values of society changes.
Once you do become wealthy, then it's OK to spend on luxury items that you can afford - if they are things that you really like, not things to impress your friends. If you are well off, you can live very luxuriously on less than half your income.
If you have a retirement account (attempt to maxing it out), you are covering more than one item in the asset graphic. With a retirement account you can have what represents stocks, mutual funds, fixed income, and retirement, all in one. Then have some physical metals and you’ve got “other assets”. Get a side hustle going and you’ve got business interest. Wealth is accesible to EVERYONE.
Yours is a fresh presentation of personal finance, great work! Especially liked the chart showing the breakdown of assets by wealth strata. Of interest, here in Canada our most recently published census info shows that average Canadian net worth is about $690k USD (USD for easy comparison amongst your viewers), unless home equity is excluded, in which case its $30k USD. If I read the data correctly, the average Canadian has 95% of their net worth in their home, which feels like it breaks the wealth strata chart a little. Guessing the chart was generated to represent Americans.
I think balance is underrated here. You only live once and I do think it's important to indulge and reward along the way. grueling sacrifice over a long haul may not be the best answer. Spend some and definitely sacrifice and save as well. But to just forgo all pleasure for the promise of a bigger pay day in 15 or 20 years you may regret
I live in Australia and it’s interesting seeing the Chinese community here. They wear head to toe designer brands and drive sports cars even if they are students. The sad thing is they all wear the same clothes so they look the same and often it’s assumed their designer stuff is counterfeit. The truely rich don’t try so hard to impress others. I don’t know if their culture understands that the need to impress is seen as a really try-hard thing to do.
That’s so true especially those who are living in the western countries. The trend now in Asia is to be frugal and smart about spending, probably because a majority of them don’t have the spending power as they did precovid. We call those flashy Chinese style 土豪
Congrats on the 5 years. Just started following you recently. Totally agree with you esp the first part - why would a rich person share his ways to success? Makes no sense. On top of making himself a target - he is also creating mass competitors for himself. I also know of people who shows off on social media they bought a LV limited edition bag...ermmm...I don't understand why people would pay so much for such a 'weird-looking' bag to be honest.
Not always the case, guess you haven't heard of a rich tycoon called Ambani, only expensive flashy things. It depends on the individual taste and lifestyle
At 21 years old and just opening a ROTH IRA should I be concerned on investing in bonds? currently i max out my 401k match and put the rest of my available savings in my ROTH with 80% VTI and 20% VXUS but i’m worried on if i should add BND or if not maybe changing my allocation %? any/all help and recommendations are appreciated!
The newly wealthy usually go through that phase. Cars, planes, watches, etc Elon Musk used to famously be a McLaren collector. But when you maintain wealth over time your focus does change.
I got 2 exact same pants and just alternating them in the last 10 years. Wearing the same winter jacket in the last 7 years. I don't see the point of buying new clothes every year.
I bought a few purses that I probably shouldn’t have. But I’m totally debt free. So, I’m a bit embarrassed about the purses but I’m done in that market.
That $1 calculation annoys they hell out of me. How can you not factor in inflation over a 45 year period?? The message is good, but the number is way off.
The number is not off. $1 will be $88 with their assumptions… you can calculate for inflation if you’d like to bring it to today’s dollars, but it will still. Be $88 in the future
I wonder what percentage of ppl in the United States own a car they can’t afford. Vehicles depreciate so quickly and the interest on the car loan is another wealth killer
It is SO TRUE that saving and investing are SO VERY necessary…. But in my opinion, spending on something that you really really really really want (less need) - as long as you CAN afford and STILL CAN SAVE whatever it is OK too (again, as long as you spend VERY and SUPER WISELY! And NOT OVER SPENDING!! I have witnessed some friends & people passed away sooner 😢 and not being able to enjoy their hard earned money 😢 …. just thought of sharing my life experience. 🙏🏽 so save as much as you can for your retirements but spend less and ok on spending something you REALLY want as long as you can afford it and spend very wisely! 😇
So true. This is why in most Asian countries people have so much credit card debt and still live at their parents homes until they are almost 40 years old.
Delayed gratification can be good not just for saving $$$, but also keeping you healthy🤪For instance, if your craving fast food everyday and instead of eating out everyday you treat yourself to fast food just once a week 😋You save $$ & your health…
After my H.S. gf and I broke up, stayed single for 7 yrs to work on myself. Landed a gorgeous girl when I was ready to start dating again. Delayed gratification always pays off.
The problem with delayed gratification is that you'll be too old to enjoy your new found wealth after saving and investing for many years. Or you'll have to spend it on health care. There is an argument that you should spend and enjoy while you still can.
There is a balance. Spending all of your money now allows you to have a higher lifestyle now, but you will live near the poverty line at retirement. Saving all of your money for retirement means you live near poverty now to be rich in retirement. Neither of those is good. Saving 15 - 25 percent of your gross income per year may force you to reduce your current lifestyle, but you gain the ability to maintain that lifestyle for the rest of your life. It also allows you to absorb financial emergencies without derailing your life. Once you gain enough wealth to cover your expenses for the foreseeable future, you're also then free to start diverting money towards more fun stuff. Delayed gratification (patience) is a fundamental building block for success in most areas. Exercising it typically pays off very well over time.
@catherinewilke5583 - evidence 😅 $500 just isn’t a lot when you are that rich, it doesn’t mean that the owner will keep it longer Also, I’ve got branded t-shirts I still wear that are 20 years old. They are still fine. Whether they are gone in a year is more about whether you buy into a fast fashion mentality, rather than how much you spent upfront or whether it physically lasts a year
Today marks 5 years since I uploaded my first video! Thanks to all that have been here and watched. If you're new - subscribe! Love you all, thank you for the support.
Congratulations!!
Congratulations on your channel anniversary!
Congrats and keep the awesome content coming!!!!! You're helping more people than you'll ever know.
Congratulations! 🎉 your videos are the best! Thank you to you and your team and all the amazing content - it’s changing lives and generations! let’s dance to your video outro music. 😄🥳
congratz and plz pick me for you next portfolio roasting and advice. ty
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
Do you mind sharing info on the adviser who assisted you? I'm 49 now and would love to grow my stock portfolio and plan my retirement
'Jessica Lee Horst' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Yes, you’re right. I am 84 and not very wealthy but I’m certainly not poor. I live on $34,000 a year and I’m loving it but I didn’t start being educated financially until I was 78 years old. So thank you for being there and adding that line toward me in your number seven.
Humphrey, I have been following you for quite some time, and I must say you have changed my outlook on personal finance. I cannot thank you enough! God bless and cheers to another 5 years! 🎉
Bless you too! Thank you so much for the comment Dan!!
Best personal financial anecdote I've ever heard: "The Rich stay rich by living like they're poor. The Poor stay poor by living like they're rich."
Only thing I found wrong, is the stealth wealth. The clothes that they wear are still extremely expensive. 300-400 dollars sometimes. They just look and are meant to look really simply and casual. But to them and compared to the clothes they could afford. Definately super cheap
You are so right. Rich people keep clothes longer and do not waste money on fad clothing. They also take care of their clothes. I am thinking of older relatives I have.
Yeah like mark Zuckerbergs tshirts are like $100 each they aren't Hanes. Now maybe Patrick Bateman buys Hanes, but not many others
Also houses. Most rich people live in expensive houses. Maybe not an all out mansion but it is at least an average to above average size and in a great area so price per square foot will be high
I will forever grateful to you,you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Sophia
Wow that's awesome
Sophia
Thanks bud for the financially keeping updated on how bad it gets on the economy! But I can smile back at my $156k monthly profit
I'm surprised that you just mentioned and recommend Mrs Sophia . I met him at a conference in 2018 and we have been working together ever since
Invsting with her was a dream come through for me
There's a difference between delayed gratification and waiting until you're 65 to enjoy life, you're only young and healthy once need to live sometimes
I held your worldview most of my life. I focused on enjoying life when I was young and healthy. Now I'm 53 and have very little savings or assets and I'm petrified about being retired and destitute. Don't do this to your future self.
@@paulw5039I think really most importantly it's about balance. Be grounded but let yourself have a few Yolo moments too.
Balance is key. It's important to save for rainy days while also enjoying the present. Tomorrow is not promised, and you may not live to see 50. I know a few people who are extremely frugal, saving everything for retirement. They never owned a brand new car or took their family on nice vacations to create memories with their kids, only for cancer to take them before they turned 60. It's so sad.
I'm 43 now. I've "lived". My last date told me she can't believe what I have seen and experienced already. (She is 12y younger.) Most of these experiences were fun at the time and lead to other experiences that were fun at the time, but none actually achieved anything for me. Yes, my live would have been more boring, but hadn't I spent that money (and unfortunately I'm an all-in kind of guy with my hobbies), I could probably retire right now. And that freedom so early is priceless.
I've done a 180 now and restarted investing as much as possible with a savings rate of 62% currently, to have a chance to at least have some earlier retirement than 67 (retirement age in my country). If I'm lucky I might be able to do it at 60 if I can keep the savings rate up like that.
@@TheBazino my brother knock on wood but we are all one doctors visit/checkup away from being on borrowed time and if that were the case you would not regret all the memories you made, nothing is guaranteed esp as you get into late 50's -60's
I've been a frugal money hoarder for most of my life, but at the same time, I've always fantasized about having an extravagant, flashy lifestyle as well. So, I understand both sides of the spectrum. Perhaps one day, I'll have the courage to splurge on my dream supercar. As much as I love seeing my portfolio grow, I also don't want to be that guy that never spends a cent of it and dies prematurely out of nowhere or loses it all to an unexpected lawsuit.
Same
I feel you. It's not admirable to spend all your money like a rock star and not prepare for the future but it's also not admirable to save so much that you never get to enjoy life. Everyone needs to figure out for themselves based on their wants and needs how much they should be saving but it's safe to say that the vast majority of people are not saving enough.
You may find that your view changes as you accumulate wealth. Now that I have a net worth of $14 million (30% in stocks and 70% in mortgage-free rental properties), I'm just happy to have more financial security, be able to go on nice vacations, and give more money to worthy organizations. I don't care about an extravagant lifestyle. I drive a 10-year-old Toyota and purchase some of my clothing on eBay. I always lived frugally and still maintain some of my frugal habits. I don't do any social media and couldn't care less if people think I don't have money. Life is good.
I think it's all about balance. Life's a bit boring if you're essentially saving/investing for being old.
Balance bro...
This is very true. People with actual wealth prefer quality and comfort over brand named items, and never really flaunt it.
When I finally found out the cost of that humble looking shirt… 😮
Humphrey, I would like to congratulate you on your anniversary of content creation for 5 years! Keep up the hard work because your content is top knotch!
Thank you!! Thank you for being here and watching.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
Awesome! Thank you!
That sounds reasonable. I've been consulting with a financial market expert for two years now, and I've built a diversified portfolio worth six figures through stock investments. However, I aim to diversify even further this year.
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
Kathryn Denise Isernhagen, my CFA, is a highly respected professional in her field. I suggest researching further into her qualifications. With extensive experience, she offers invaluable insights for those looking to navigate the financial market.
I recently googled her name online and was very impressed by her qualifications. I decided to contact her because I could really use her help.
My goal is to put myself in rich people group and be low key about it. Yes, some rich people don't brag about their wealth. They are more focused on being success privately and not showing off. If I was rich, I would keep a low profile.
Love to hear that Courtney!
Congratulations on 5 years! Steady paid off!
Thank you for another great video with awesome visuals. You stand out from the rest.
"Delayed gratification" occurs in many ways. e.g., in a large parking lot, as at a shopping center or a supermarket, I nearly always back into a parking space, even though it's much easier to drive into the space forward, as the vast majority of people do. However, it's MUCH easier to drive out of a parking space than to back out of one, when you might have a car coming from the right, or from the left, or people walking behind you when you want to leave. Driving forward into a space is a form of INSTANT gratification, whereas backing into a space is DELAYED gratification, and the reward for delaying gratification can be huge, depending on how busy that the store might be on any particular day. Money works in the same way. Enjoy it a little now, or enjoy it much more later!
*Thank you😊 for this video, do you offer account management or have any recommendations?*
As a beginner investor, it's essential for you to have a guide. Myself I'm guided by Mrs Victoria K Walter, a widely known consultant
That's true. a lot of people today have been
having lots of disappointments in trading in light of helpless direction and awful consultants
That's true. a lot of people today have been
having lots of disappointments in trading in light of helpless direction and awful consultants
@@BrittanyDorisI've been trying to trade but I keep making losses and it's frustrating
Could you suggest a consultant for me?
Very good points! Also I would say that lower classes tend to be obsessed with money because of the Idéa that consuming is the only way to climb the social ladder. Whilst the people who have money naturally values other things in life that has deaper meaning and is free, like free time, relationchips and nature.
Grateful for you Humphrey. Thanks to you, I am way ahead financially than other people my age at 26
lets go Hunter!
"It's a misconception that individuals with substantial wealth tend to gravitate towards "cheap cloths" $50 outfits. It may not be a flashy, ostentatious attire. In reality, many opt for a classic, timeless, and unpretentious style, albeit with higher price tags. Their clothing may not cost thousands of dollars, but it certainly wouldn't be a $10 shirt either. Similarly, their choice of footwear often exceeds $200 or more." Pants priced between $70 and $200. Etc
All great stuff, no doubt. One problem with delayed gratification is that tomorrow is never assured.
Waste most of today's assets would probably assure poverty in the old age.
Rich people do not fantasize about nice clothes or a fancy car. They fantasize about power and discretion. Poor people want to show off.
Exactly! Fake LV bags, gold chains, furs?, stolen cars, brand tennies, and then go home to the ghetto or trailer park.
So poor people buy Lamborginis and Ferraris ?
Have you lost your marbles ?
@@chriskappert1365 a rich person COULD buy a Lamborghini, but it means nothing to them.
I like your point about racing to 6 figures as fast as possible, the thing that struck me most about that is that when you hit $100k, you can have a pretty sizeable emergency and it’ll not only be completely covered by what you have on hand, but very likely completely or mostly covered by what you make in market gains that year. And I experienced that firsthand a few years ago right as I got to about $130k we suddenly needed a second car and it never even felt like a bump in the road much less a real emergency because it was more than offset by what our accounts made that year on top of adding to them
When you have a fully funded emergency fund you sleep so much better. Having something like your A/C unit go out becomes a nuisance vs a crises. So many people use credit cards as a safety nets vs saving up for stuff.
Congrats on 5 years Humphrey! 🍾 You have a great channel with excellent content & and a great vibe! 🎉
I’m so glad I started managing every little money movement me and my wife make. I have this huge excel that tracks absolutely everything of what we do. I know exactly everything. How much we’re worth. How much we save (50%!). How much we spend. Combine that with investing and charting as much as I can and setting expectations for the future with said charts. It’s really amazing.
Just found out your videos and love them! Instant subscribe.
One point that you didn’t mention in this video is: if you die at half time and you just focused on saving you might not enjoy life enough, so there’s a balance that one needs to accept :)
That’s been my mistake! I’ve been watching the scratch golfer videos, trying to get six pack abs.. now I’m 30 pounds overweight but my putting game is on point
Wealthy people definitely don't give advice on how to become wealthy
Congrats on your 5-year anniversary! I get a ton out of your content. Good reminder about delayed gratification. Keep the content coming. :)
At the start I guess but I mean I know people who save away over 3 million a year but are covered in diamonds and have the craziest cars. It’s not really rich or poor at a certain level it’s humbleness
I buy most of my clothes from Costco now. Cheap, comfy, and i could care less about what others say.
There’s actually a super funny clip of a comedian saying that wearing Costco clothes is peak not caring, in a good way 😎
I really enjoy your videos even if a decent portion of your advice is not applicable to me since I don't live in the US. I hope you keep educating and helping people.
I have a 7 figure net worth and my newest vehicle is a 7 year old Toyota Prius that I bought used and I don't count my house as an asset. Why ? Because a house COSTS you money, it doesn't make you money. I use the Robert Kiyosaki definition that there are only assets and liabilities. Even if you own a house, it still costs you money every year in maintenance, taxes, insurance, etc. If I stop paying anything on my stocks, they still are making me money and no one can take them from me. If I stop paying anything on my house, the Government is going to come and take it from me. Now how is a house an asset again ? IT ISN'T !!
@humphrey13 SCREW YOU Scammer !!
How about the appreciation of your houses value? That can make it an asset right
@@brock5946 no it is not and here is why.
You buy your home 30 years ago for $125,000.
You pay $130,000 in interest over the 30 year mortgage at 5.5%
You pay $40,000 in homeowners insurance
You pay $112,000 over 30 years in maintenance (2% a year average)
-------------------------------------------------------------
Total cost $407,0000 over 30 years
Your house is worth $250,000
= Net loss of $157,000
Let us say your house tripled in those 30 years and is worth $375,000 in 30 years,
$407,000 - $375,000 = a loss of $32,000
Your house would have to increase by 326% for you to show profit and you only get that profit AFTER you sell the house. Does this explain to you why I don't consider a home an asset now ? I realize we have to have a place to live but also why I don't consider a home an asset. And even after you own your home, it still is costing you money in taxes, insurance, maintenance, etc. I don't call something an asset unless it is making money, ie stocks, bonds, gold, etc. If I buy a 1 oz. gold coin it doesn't continue to cost me money, it doesn't cost me anything. If I buy a share of Wal-mart stock, the stock pays me dividends and the stock appreciates and I don't keep paying for it. (Yes I realize there is a small cost for keeping that stock but over all it is a very tiny cost and the overall return is positive.)
Great Point but No, it’s still a liability because it takes money out of your pocket Mortgage PITI , repairs etc. It can be a good investment over renting, and it’s also a good investment only when you sell if you have equity. Most people when they sell
forget to calculate all the payments they made along the way, to actually figure the true net net, they’re walking away with.
@@columbus400 show me the math.
If there is a sign on top of our head that displays our net worth, a lot of people will be humble.
It's fascinating how their financial habits and mindsets vary. Although you need money to have a certain mindset
The only difference I can see between the rich and the poor is MONEY😅 and maybe life style
I bet it's more like they have a secret handshake and a decoder ring that tells them which stocks to buy.😂
No you don't need money to have a certain mindset. My wife and I started out investing $2.50 a week and now have a 7 figure net worth. The only mindset you need is to educate yourself about investing, learn what an asset is and isn't, and don't make excuses about your decisions.
8:09 another thing is hedge funds and alternative assets like private debt and private equity funds. These funds generally have higher return but also low correlation to each other and the S&P500 so while a common folk's best bet is buy investment houses and stocks they will get crushed in an economic downturn whereas a multimillionaire who owns a diverse portfolio of private assets will grow faster and probably have 1/10th the losses of the S&P500 in a down year
I love the Money Guy show! Awesome for you to reference them.
But...but, I like posting my trips especially when (social media) reminds you of your memories 😁
It’s really easy to save the vast majority of your income when such a small percentage of it is needed to cover bills and necessities. My household has a fairly high income and when we bought our house, we didn’t even need to cut back our discretionary spending to afford the mortgage payments, because our discretionary spending was pretty much negligible compared to our overall income or mortgage payments. Cutting back would have made almost no difference. Granted, we are not THAT rich to be able to buy a $2million home on just cash but even so, we already find it really easy to put $6-8k into stocks every single month. And yes, our focus is very heavily biased towards buying assets, but we have not really had to give up much either. We still travel and buy what we want.
I've recently come into an inheritance of nearly $900,000, i'm being directed towards the stock market. What risk management strategies are recommended to navigate and safeguard my investment in the market?
Explore the option of engaging financial advisors, estate planners, or tax experts. Their specialized expertise can assist you in navigating intricate financial decisions.
A lot of folks downplay the role of advisors until being burnt by their own emotions.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
How can I reach this advisers of yours?
Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
The Money Guys are great! Humphrey & Money Guys collab would be awesome
I love them
The wave of "Here's my Net Worth at X age" videos I've seen on YT recently has been wild.
remember, that your future is NOT guaranteed. You can go at any time so make sure you live life for today because you can't count on tomorrow.
A lot of those who have wealth in the first place tend to come from upper middle class or even wealthy households where the parents started college funds when they were born. So, if you are poor, don't have kids. Only have kids if you can help them save for college and if you can give them the tools to be wealthy when they grow up.
You can do everything right, but the government rewards poor financial choices. They forgive loans, grant better rates and provide assistance to those who choose to spend freely. They should be rewarding and educating people on how to save and live below their means.
Great content, keep up the good work! Delayed gratification is so tough but so valuable. The idea of building knowledge goes all the way in history as building wealth, and it certainly shows. Excited for the next video already!
Not so much "Trust" the financial system, but Understand how financial system WORKS! I was 29 when I was finally out of debt and had money to spare and play around with. I bought stocks, but 2020 was around the corner. So I watched all 12k investments become 8k as soon as the pandemic hit, and left it because I didn't understand it. Additionally, I really didn't know what stocks to choose, or what an IF/ETF fund was then. Now I do... know it's about sharing the knowledge to family and siblings, and who ever needs help with it.
I never get bored of the rich vs poor videos haha they’re always the same but it’s always a good time
Congrats!!!👏🏿👏🏿Enjoy every upload
Please definite “rich” first. If only the level of Bill Gates is considered Rich. You are right. If a 5 million investment qualifies one as rich, then many your points may not apply.
If rich people are so modest, how do explain their multiple gated mansions, private jets and political fund raises, all well known?
He is not talking about billionaires
He is talking about most of the rich people
And I think you re just jealous that you don’t have those things
Not always, there are also a lot of Rich dudes out there who love to Show their wealth with luxury Brands, Cars and so on.
Only because someone is wealthy doesn't mean that he has taste and knows how to choose good looking clothes. One rich person is more into art and this also could reflect in an extravagant outfit and another person might be more into maths and feels more comfortable in conservative clothes. Sometimes it is as easy as that.
Humphrey, thank you for continually sharing top-quality info and videos! I would also love to hear your advice on what someone can do after maxing out all the generally-advised accounts (like 401k, IRA, HSA, 529, etc) - what would be great next steps ideas before investing into taxable accounts? Thank you for all your hard work and generosity. Your content has changed the game for financial education!
Congratulations on 5 years.
We are striving to build out investments and have shared the same small sedan among our family of 4 since the beginning of 2023. It's delayed gratification for sure, I would love to have a minivan but I believe there are better things on the horizon. 🙏
Nice video. There is one thing where my personal experience differs from one of your points: wealthy people do have good credit score, but that is because they use credit cards as they are an easy way of paying, and pay them off. I have never known any really wealthy person who uses their good credit score for anything personal. Smaller purchases, like a house, they usually pay directly. Whereas for bigger purchases, like a company, they tend to use separate financial constructs for the credit. If you want to become wealthy, the credit-score is relevant obviously.
There's something I don't understand about the graph about assets that make up wealth - for the $10k, why is "primary residence" even listed there? Wouldn't most people at that level be renters and not homeowners?
Hello! Appreciate the channel! I’m curious, if you have a 401K, do you also have to maintain separate investment accounts? Or does that just depend on your personal situation/goals? I don’t care about becoming insanely wealthy, just want to be financially secure in my old age.
Congrats on your 5yr milestone HY! Most of your content revolves around younger, and likely single individual investment plans. Would you create more content around young families with children, expenses related to their private education, tutoring, savings for future property, etc. You know what the typical Chinese family does for their children 😅
Absolutely agree. These people with flashy clothing, jewelry, cars, actually have no money and no financial literacy. They buy on credit or borrow someone's house or clothing or car for their videos to fool people. Many wealthy people are low key (eat regular restaurants, take subway, use Uber, dress down; no clothing with name brand labels. or at least you wouldn't know it..). Anyone can save, even the person who is a maid. Just takes discipline and financial literacy. Case in point, a friend started landscaping seven years ago, after losing his blue collar job due to downsizing. He said he'd never work for someone again. People laughed that he became a landscaper. He'd start early morning and worked every day, except Sunday. His wife works as a nurse. They lived very simply and saved and saved. Three years ago, they moved to a beautiful, custom made home and purchased new cars in cash. They are debt free.
Cash flow is crucial for maintaining the lifestyle you desire.
Education should be with caveats. There are poor people who have student loans. Formal schooling can help, but only if it does not leave one with debt or a disreputable degree (bad major, bad school, poor network, etc.)
You forgot to mention that a lot of them also open up businesses and write off their personal expenses as business expenses and many operate in debt. They don’t own anything until they do. Much of it are assets but cannot easily be liquidated. The value of things are constantly moving as much as the values of society changes.
Once you do become wealthy, then it's OK to spend on luxury items that you can afford - if they are things that you really like, not things to impress your friends. If you are well off, you can live very luxuriously on less than half your income.
If you have a retirement account (attempt to maxing it out), you are covering more than one item in the asset graphic. With a retirement account you can have what represents stocks, mutual funds, fixed income, and retirement, all in one. Then have some physical metals and you’ve got “other assets”. Get a side hustle going and you’ve got business interest. Wealth is accesible to EVERYONE.
i wish i saw your channl two yrs back.
Yours is a fresh presentation of personal finance, great work! Especially liked the chart showing the breakdown of assets by wealth strata. Of interest, here in Canada our most recently published census info shows that average Canadian net worth is about $690k USD (USD for easy comparison amongst your viewers), unless home equity is excluded, in which case its $30k USD. If I read the data correctly, the average Canadian has 95% of their net worth in their home, which feels like it breaks the wealth strata chart a little. Guessing the chart was generated to represent Americans.
Cool presentation! Thankful for uploading the production.
Great video mate! Subscribed!🎉
I am retiring at 45. Managing your money the right way will help you reach your goals so fast.
I think balance is underrated here. You only live once and I do think it's important to indulge and reward along the way. grueling sacrifice over a long haul may not be the best answer. Spend some and definitely sacrifice and save as well. But to just forgo all pleasure for the promise of a bigger pay day in 15 or 20 years you may regret
I live in Australia and it’s interesting seeing the Chinese community here. They wear head to toe designer brands and drive sports cars even if they are students. The sad thing is they all wear the same clothes so they look the same and often it’s assumed their designer stuff is counterfeit. The truely rich don’t try so hard to impress others. I don’t know if their culture understands that the need to impress is seen as a really try-hard thing to do.
That’s so true especially those who are living in the western countries. The trend now in Asia is to be frugal and smart about spending, probably because a majority of them don’t have the spending power as they did precovid. We call those flashy Chinese style 土豪
Congrats on the 5 years. Just started following you recently. Totally agree with you esp the first part - why would a rich person share his ways to success? Makes no sense. On top of making himself a target - he is also creating mass competitors for himself. I also know of people who shows off on social media they bought a LV limited edition bag...ermmm...I don't understand why people would pay so much for such a 'weird-looking' bag to be honest.
祝贺你的5周年！
Not always the case, guess you haven't heard of a rich tycoon called Ambani, only expensive flashy things. It depends on the individual taste and lifestyle
Can you please make a video about the TSP?
Hell yeah, government gang rise up
At 21 years old and just opening a ROTH IRA should I be concerned on investing in bonds? currently i max out my 401k match and put the rest of my available savings in my ROTH with 80% VTI and 20% VXUS but i’m worried on if i should add BND or if not maybe changing my allocation %? any/all help and recommendations are appreciated!
The newly wealthy usually go through that phase. Cars, planes, watches, etc Elon Musk used to famously be a McLaren collector. But when you maintain wealth over time your focus does change.
Money Guys referenced! Heck yeah I love their channel. Great points that we should all remember Humphrey.
I got 2 exact same pants and just alternating them in the last 10 years. Wearing the same winter jacket in the last 7 years. I don't see the point of buying new clothes every year.
Another great informative video. I appreciate you! Thank you!
I bought a few purses that I probably shouldn’t have. But I’m totally debt free. So, I’m a bit embarrassed about the purses but I’m done in that market.
As long as the stock market lasts for another 40 years I'll be all set. Can't say I'm not worried about the world's impending energy crisis though...
Love to see the Brian Preston show referenced- I think they help people really focus on the fundamentals of building wealth early on!
That $1 calculation annoys they hell out of me. How can you not factor in inflation over a 45 year period?? The message is good, but the number is way off.
The number is not off. $1 will be $88 with their assumptions… you can calculate for inflation if you’d like to bring it to today’s dollars, but it will still. Be $88 in the future
1:19 bad example, sorry. The gym influencers have genetics (and juice) you will never have (nor want).
But I see your point.
Thanks!
I wonder what percentage of ppl in the United States own a car they can’t afford. Vehicles depreciate so quickly and the interest on the car loan is another wealth killer
Specially dudes in big trucks 95% empty and with gas prices and insurance so high🥵🥵
Not many. A car you can afford is one you buy with cash. I’ve never had a car loan. That’s poor people stuff.
Can you do a video on budgeting when you receive quarterly salary checks instead on weekly or bi-weekly checks.
Let’s see. Inheritance. Family contacts. Family habits in relation to using money.
It is SO TRUE that saving and investing are SO VERY necessary…. But in my opinion, spending on something that you really really really really want (less need) - as long as you CAN afford and STILL CAN SAVE whatever it is OK too (again, as long as you spend VERY and SUPER WISELY! And NOT OVER SPENDING!!
I have witnessed some friends & people passed away sooner 😢 and not being able to enjoy their hard earned money 😢 …. just thought of sharing my life experience. 🙏🏽 so save as much as you can for your retirements but spend less and ok on spending something you REALLY want as long as you can afford it and spend very wisely! 😇
I totally agree with you. This is why I subscribed!
So true. This is why in most Asian countries people have so much credit card debt and still live at their parents homes until they are almost 40 years old.
I regret for only start investing after age of 35.
To be fair I didn't have much before that anyway and job wasn't that stable either.
Delayed gratification can be good not just for saving $$$, but also keeping you healthy🤪For instance, if your craving fast food everyday and instead of eating out everyday you treat yourself to fast food just once a week 😋You save $$ & your health…
Thank you for your videos @humphrey your amazing
No rich people show off all the time. Fancy houses, posh schools etc. They compete and compare all the time.
After my H.S. gf and I broke up, stayed single for 7 yrs to work on myself. Landed a gorgeous girl when I was ready to start dating again. Delayed gratification always pays off.
Great vid Humphrey!
Everything here is so true, thanks for this video.
The problem with delayed gratification is that you'll be too old to enjoy your new found wealth after saving and investing for many years. Or you'll have to spend it on health care. There is an argument that you should spend and enjoy while you still can.
There is a balance. Spending all of your money now allows you to have a higher lifestyle now, but you will live near the poverty line at retirement.
Saving all of your money for retirement means you live near poverty now to be rich in retirement.
Neither of those is good. Saving 15 - 25 percent of your gross income per year may force you to reduce your current lifestyle, but you gain the ability to maintain that lifestyle for the rest of your life. It also allows you to absorb financial emergencies without derailing your life.
Once you gain enough wealth to cover your expenses for the foreseeable future, you're also then free to start diverting money towards more fun stuff.
Delayed gratification (patience) is a fundamental building block for success in most areas. Exercising it typically pays off very well over time.
Medicare/Medicaid exists
He means not spend on things you want at that moment (thats how marketing tricks you)
Most people want things to brag to others 😂
"stealth wealth" the rich people you showed are literally wearing $500 plain non-branded clothes.
Yep and that plain $500 shirt will last
Decades, whereas the silly branded shirt will be gone in a year
@catherinewilke5583 - evidence 😅
$500 just isn’t a lot when you are that rich, it doesn’t mean that the owner will keep it longer
Also, I’ve got branded t-shirts I still wear that are 20 years old. They are still fine. Whether they are gone in a year is more about whether you buy into a fast fashion mentality, rather than how much you spent upfront or whether it physically lasts a year