I'm 19, How Do I Not Blow My $100,000 Inheritance?
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- เผยแพร่เมื่อ 29 ก.ย. 2024
- I'm 19, How Do I Not Blow My $100,000 Inheritance?
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Please don’t tell anyone! People know you inherited money and suddenly you are the one buying things for your friends. Seen it happen.
Yup.
Been there, done that. Never again.
Just deny them, true friends would never ask for things they don't control your life decisions.
Good advice. A relative got a settlement for an accident and she had so many friends! Once it was all gone she suddenly had no friends!
I wouldn't worry about friends, they might ask to borrow but you can easily say no. Family is a big hassle, they will make you feel guilty if you don't help. I don't let my family and in-laws know how much we have. Some of my siblings make way more money than us but because they are so bad at finance and they are always broke then they will ask for help. I told everyone if they make more money than me that means they are not poor and if I can make it that means they can as well.
If I had this money (19yr old here too) I would pay school off to be debt free,max out my Roth each year and match a 401k, put the rest in a high yield savings account
I’m 19 and if I was lucky enough to have that it’s called I go buy a house and still have 20k after buying a 60k house putting 20 into it than selling it for 120 without labor costs because ik how yo do it all myself boom end of conversation
I live in Pittsburgh
Just invest in Apple. In 5 years you should have 2x-3x your money atlest.
True u were right
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@Lourd-Bab Oh please I’d love that. Thanks!
@@lennoxmutterick6434 Judith Ann peace is her name
Lookup with her name on the webpage.
That's the oldest sounding 19 year old I have ever heard
welcome to south carolina
Same thing I thought.
Go listen to Chocolate Rain...his voice will blow your mind! Lol
My son is 17 and his voice has been deeper than this young man’s since he was about 15. No one ever believes he’s as young as he is.
My 13 year old will sound like this. He already has a pretty deep voice, it's crazy.
One of the smartest things the 19 yr old could do... ask how to deal with sudden wealth and not blow it.
And 3 years later, I hope he made that right decisions with it.
I agree the stock market is a very good way to make passive income. I have heard of several investors who were making more than $40k a month from the market. I'm ready to go into the market now, but I'm careful to not make a mistake. Or are there are safe bets?
It's hard to beat the market as an ordinary investor. You don't have access to information that professionals have. So it's just better if you invest with a professional who knows how things work better.
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
Wow! This is just mind-blowing. I have set aside $80k since the start of the year, but I've been hesitant to go into the market by myself because of fear of a crash. How about you recommend your financial advisor, please? I could really use some help.
I have been working with “Sharon Louise Count” for about four years now, and she's made incredible returns. If she meets your discretion, then you could go ahead.
Thanks for this. I'm not just beginning-- I have an already existing portfolio. Could she manage that too?
Lol I wish I had this problem. Wipe that debt and Invest immediately man.
This will be my sons problem and what he went through to get it isn't worth having this problem.
@dachicagoan Bad play. The twist in your story is that housing prices will go up 15% before it crashes 10%, and you'll convince yourself it's a deal.
I mean, it’s great to have the money but his Grandfather just passed away...
NO! Do not invest "immediately". Take some time to learn about investing first _then_ take a small portion of the money and invest it. Focus mostly on school, monitor that small investment AND DO NOT SWING FOR THE FENCES. Keep moving forward.
First rule about getting any monetary windfall. Keep your lips zipped.
I wish I had a grandparent that left me money. So I have a plan to be that aunty to my niece.
Same. I don't have kids of my own so it'll go to her. Even if I have kids, I wouldn't cut her out unless something major between us happened
Have your own children.
Lol don't spend it! But I agree that finishing off school debt free is the best move.
Foreal
Agree. Pay off school and be debt free. Save some and invest in some.
Yes, the timing is perfect to use it for his education. And such a smart lad to be asking for an expert opinion on not pissing it away.
Agreed. Take care of whatever
Is needed and then go from there.
Yes, BEST thing I did was pay off my school debt w/ my first month salary & starting bonus from my first job out of college. It was the only thing I owed and it let me enjoy and invest my money at 23!
Dave should introduce him to WallstreetBets🤣
OTM TSLA calls!
This kid will be set for life if he plays it correctly. Even $50k in a decent fund that starts before he's even 20 will be a very nice start. He'll graduate debt free with an emergency fund, paid for car, and a huge start on retirement 🍻
yep, 50k at 9% average growth for 40 years is 1.57m. he will be set pretty good even if he never put any extra into retirement, but ofc he should add more.
lol not set for life but ya it can help
That’s gonna take ssssoooo long by the time he gets the money he’s going to be to old to enjoy it
@@TheShahZAAM that 50k could easily be 748k-1.57m if it got anywhere from 7-9% average growth. not set for life, but certainly set for retirement.
@@Speedwayjay how do you figure? 60 isnt too old to enjoy money lol. my uncle is 60 and he climbs mountains, goes on international vacations, shoots guns, rides atv's and dirt bikes, rides jetskis etc. he does anything a young person can do. also its not as if the guy isnt going to work and make money to enjoy while he is young.
most people live to 60 and its smart to plan for retirement at a young age. that is the key to becoming an everyday millionaire like so many of the millionaires featured on daves show
Sooooo glad he called Dave before doing ANYTHING
I can relate to this. I inherited under 200K at 14. Haven’t touched it until recently because I’ve been educating myself on investing and the long term game.
I invested during March lows.
wow, congrats man. 40% gains in a few months must be nice.
@@HermannTheGreat ;)
Leave your children enough so that they can do anything. Not so much that they can do nothing.
Bro kickass I saw it drop I watched it saw the bottom then watched that opportunity pass me by man oh man your awesome bro just maybe pull out soon because it's way overvalued
@@austintomkewitz7206 There's only one reason to sell assets you got a good price, and that is if you need cash to cover expenses. Getting back into US dollars, I am bound to lose money due to inflation - QE
“Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.”
― Will Rogers
Just don't be a simp. You will blow your money fast for next to nothing. NO SIMP SEPTEMBER.
Remember when we were 19?
@@tdgdbs1 I was the biggest simp in my neighborhood. Would be a very rich man now if I wasn't simping so much.
@@untouchable360x Simping as in, giving your money away to women because you think that gets you something?
BadMannerKorea not even that you would get something if your simping you probably already got some and got stuck 😂😂
He is gonna spend it on only fans guaranteed.
Love how Dave and Anthony always say buy a car 10k at most very true!!
A honda gets you to the same place as a Mercedes
People are so lucky to have inheritance. Me and my husband both of us paid for our own college courses, parents didn't save any college fund. When we had full time jobs, just jobs, nothing else with a little better pay, suddenly we were the ones should pay for all. So whenever family member asked how much did I make this year I told them none of their business.
I’m not sure where “luck” plays a part in this. A lot of people who receive an inheritance lose somebody in the process. I also don’t come from money, but maybe watch your words next time as many people lose their family (mom, dad, grandparent) to get this “lucky inheritance”. Congrats on your success nevertheless.
your comment is disgusting. nobody's denying death is not a tragedy and that's a benefit. The benefit is luck because you're born in the right place and the right time. That someone did all the work for you and then benefit big time because they decided to will it to you. they didn't have to do any of that.
I have an opinion: only invest your money into things if you know how those things work. For example, if you don't know how the stock market works, don't invest your money there. If you do understand how it works, then go ahead. I don't think there's anything wrong with putting the money in a bank account or a CD and taking your time to learn how to invest. I also think it's OK if you don't invest all of your money in the stock market.
Does anyone agree or disagree with that? I'm open to suggestions.
I’ll put 50k in a SP500 index fund or in QQQ ETF, and pay school for with the rest.
I suggested this in Chris Hogan’s millionaires Facebook group and got banned for a week. Chris and Dave hate hate index fund and only suggest mutual funds.
@@tanpham7411 Yes, they don't get their cut if people buy index
@@perotal What do you mean by they don't get their cut?
Faith They made money by referring people to investment professionals that handle mutual funds. Therefore they do not suggest people investing into index funds.
Tan Pham Yep, Mutual funds are the worse way to invest your money because is actively managed, I follow the advice of Warren Buffet to just put money in a passive Index Funds that track the SP500, I use FXAIX personally because it has low turnover and the expense ratio is dirt cheap.
Really good for him. Fair to say most 19 year olds would blow it.
I would pay off my student loans - The rest, I would immediately lock into a 3-month GIC (I'm in Canadian, American's would do "money market"). This isn't a wealth-building option and I'd miss out on a bit of compounding but that's fine. Chris Hogan recommended this the other day and I entirely agree. If you have access to the money right away you'll likely blow it. I'd need to give my brain time to adjust so I could make wise decisions.
Americans*
Holy, so glad you commented this. Without this form of clarification i would have gone my whole life thinking otherwise.
Cheers to all the people who were too poor to get student loans. What a blessing that has been!
Lucky kid. Be thankful that you lucked into this money. Pay off your debt. Put $10,000 into savings. Put the rest into VTSAX.
Not VTSAX put it into VGT
Kudos to Ramsey for giving away Ramsey+ to this student! This could have changed John's life forever
I mean it's always nice when Ramsey give things away. It's not like it costs a lot of money to begin with. It's very affordable and people are more likely to take it seriously if they pay for it
Helped my ex spend her $100,000 inheritance. We were young and dumb, her mom watched us walk for high school graduation and passed a week later. Retail therapy is terrible and money will NEVER buy you happiness. I have been there don't try to argue until you have spent $100,000 like I have contributed too. Act like it is not there and build a life for yourself before you do anything emotional. 5 years later I built a life for myself, asked for forgiveness, and learned the value of a dollar earned.
My recommendations: All he has to do is pay for the rest of his college debt free. When he graduates first find a job. Make sure you are at the job long term and have stable employment. (1 to 2 years). The 3rd year place a down payment on the home. Do not tell anyone about your money, make sure they get the sense that you only got money from working. Keep the money in savings and build retirement. I wouldn't splurge on anything after graduation. It can take some time to find a job you both like and will be stable at.
The kid needs to read rich dad poor dad
concur
that is total opposite of dave ramsey
LOL
Or a Business School Degree at Yale
Robert uses debt as a tool, Dave doesn't
resist the urge to make your truck look like a dog squatting to do his business in the yard
It says he's from Washington, South Carolina so I'm afraid this very well may happen.
It's called ghost trailer lol
This is 7/10 Americans. See it all the time where I live. People take their 90k inheritance and run down to the Ford or GMC or Chevy dealership and drop 75k of it on a super truck that is then worth as much or more then their house is. 100k and up is way too important for debt control and future investing to do this.
I love how he's papa Dave ❤ he talks to you like you're family
I know I have a large sum of inheritance coming my way when my grandparents pass, and my gameplan is the same as they discussed here. When i first learned about it many years ago i had no financial skills and I am glad I didn't get it then.
He should find another way of paying off the student loan and place the 100k in a trust fund to invest later on in blue chip stocks or mutual funds. Treat the money like a windfall, pretending that it isn't there.
Put all 100k in an index fund. Make 8% on it. You will have 3.2 Million after 45 years. If you spend 20k of it on college, then it will only be 2.55 Million. That is $650,000 he is missing out. The student loans, as long as they are Stafford government loans, are 5.05%. Pay off the 20k in loans over 3 years with your new marketing job. That is the more profitable decision.
You know.. Anthony was giving him solid advice.. Dave though... there is difference between arrogance and confidence. “Remain scared”, “Best program on money on the planet”, “don’t be stupid”.. I mean.. Dave has one mode and most of the time it’s not especially helpful. He should spend the same energy updating his material for his program.
I applaud this young man on seeking wise counsel first.
Once all debt is taken care of I feel it is important to find a good investment advisor that takes you seriously even if you only have a little money left to invest.
My man maxed out on CLEP, AP, and Dual Credit classes to be a junior at 19
Or he was born in sep- dec. Ill be 19 as a junior as well
Probably the worst time to get an inheritance... For most its going to completely sap their motivation to work
My inheritance made me mature almost over night, realizing I had my dads legacy at stake.
Maybe if he got millions of dollars or something.
@normanreeves3536 my man!! 🤝
I know of a few people who absolutely blew inheritances !!
Their parents were the tightest people on the planet . They did not follow suit .
At the end of the call when Anthony makes a final comment about going ahead and buying something even like a five or $10,000 car Dave looks away to his left like didn't I just say to do nothing but pay off your college first and then go from there? And Dave made no comment supporting what Anthony said he just reiterated that it was a good question from the caller.
Yeah, I caught that too. I feel that their personalities are too much together.
He could finish school debt-free and set the rest on fire and will still be in a better position than 90% of people his age
Out of sight out of mind. Lock it up and put a plan in place
Buy a 911 Turbo S. used of course. Dave would approve.
Wow this question is extremely relatable. I inherited $96,000 at age 19. Now I am 21 years old, have no degree, and have $25,000+ in student loans. I spent $20k+ on a car. I also spent around $10k on personal computers (I got two custom built desktops, a $3000 Macbook Pro, a $1400 iPhone 10s Max, 2 pairs of headphones, airpods, and an apple watch.) I also got more expensive housing and unnecessary home goods such as a robot vacuum, expensive trash can, among other items. I probably spent a little over half of my inheritance on College expenses but the rest I just seem to have wasted. Plus student loans give the excess funds to your checking account making it seem like I can spend more money than I actually have. It really is no surprise to me that Americans struggle so badly with debt because no one teaches them about investing, paying off debt, living below your means, etc. In addition to the $25k+ in student loans I also have 4 credit cards with a total credit limit of around $30,000 so it is very easy for my spending to go out of wack and constantly be in debt. Plus most of the credit cards I own have a 20+% interest rate. I am more aware of what I have done now, but still make mistakes, and wish that I knew more about finances sooner.
bruh
My God I hope you figured out how to be not so stupid with your money. How are you doing now?
Findca way to use it to acquire a high income skill, then you'll be making that 100,000 per year or half- year or month
When I got one I spent $50 on one of my best friends. That was it on other people. No one can force you to give it up without your permission. And money advice - I didn't do what DR would have done but that was okay. In the end I wound up in a WAY better financial place. But finding out your options is the best. But in the end make your own decision.
I hope it is $100,000 flat after taxes.
A Security Guard that money has already been taxed so it’s 100,000 flat
@@kellys3515 ok cool cool
I didn't think inherited money was taxable.
JoeAceJR well good for you but the irs is gonna have some questions regardless
JoeAceJR because usually it’s gonna be transferred by bank account.. and it’s all tracked and reported at that amount....unless he’s leaving you 100k in cash. That’s a different story.
This was EXACTLY me three years ago. Same age and amount of money. I spent some of it on education and the rest is in mutual funds until I am ready to buy a home in the next 2-3 years. Just pretend it doesn’t exist except for education or purchasing a home, you’ll be good.
Sell those mutual funds and get into ETFs. They have the same benefits with lower fees.
Also, should probably stop listening to Dave Ramsey.
Get into the habit of living well below your means - pay off high interest debt first, and stick a big chunk of it in a roth IRA, then savings account. Keep emergency buffer.
Technically he can’t use inheritance for a Roth IRA though right? Although if he has a part time job he can prob show he has a few thousand in income to use. Just thinking about 5 decades of compound interest on say $25k is mind boggling. He could turn that into a million dollars and never contribute another dime after age 19...
By not spending it invest and save for the future
The fact that this kid is asking this question shows good responsibility at his age.
The most 19 years old are going out party and spending money like crazy.
Do not care about their financial is like dave said YOLO is for kid.
This was good advice. My other thought is that if he needs money to live on while in school, put himself on an "allowance" where he gets a monthly transfer to his checking account and doesn't even see the "big money." This money is enough to be a great start in life, but not enough to live on ultimately. If he is working while in school, keep working (assuming he can handle work and school.).
And don't increase your lifestyle..
Nice to see that not all trust fund babies are completely detached from the real world.
When I see Dave, I have to CLICK!!👆
invest the 100k and dont touch it for 40 years and you could have 4.5m...
sure 100k doesnt sound like much, but if he leaves it invested until retirement then his retirement is already funded.
This is why you don't listen to Dave Ramsey. 60k initial investment is 2.7 million over 40 years. 100k is like you said around 4.5. The interest rate on the student loans is irrelevant.
@@BadMannerKorea yep, i 100% agree. he should just get a job and pay off the student loan with that income and invest the full 100k
It wont be nowhere near 4.5M in 40 years. That would be 10% increase each year. 1.5M is more realistic with 7%. Still a good headstart though.
Rouhunaattori The average over decades is 10%. Even 7% there’s still no reason to pay off the loans.
@@BadMannerKorea I agree, no reason to pay off the loans with lower %. However, the increase in networth at 10% compounded annually does not take inflation into consideration which is why I usually calculate with 6-7%
Save it, don’t get married (unless prenup), live below your means.
I remember those times.
Hard to see beyond 19.
Hope he stays focused for at least ten years...’til that feeling of _______passes
Im 19 and my goal is to be as wise as possible before 32
@@DriftyJayy that's a great goal to have!! I'm 27 years old and man oh man do I wish I could go back sometimes lol I would have started saving much earlier. Stopped chasing boys, and read more books.
Ah yes, those old college simple days where 100k felt like power.
Great advice! Other big advice is: Don't tell people about it!! People can get uncomfortable or expect you to pay if you have way more money than them.
So true. Loser friends come out of the woodworks. "Act like its not there". Good advice but easier said then done.
Thats a reall good answer dave make your grand father proud
Wow challenging experience but I hope they can learn from this so they can built it back up again
Downpayment on a good house and put tenants in the house to owy it off. If he buys well it can pay off. Of course emergency fund comes first.
1. Change your degree to finance, engineering or IT.. marketing is tough industry. They laid off so many people in marketing teams and the remaining don’t make decent money and are stressed!
2. Keep a 6 month emergency fund
3. Put the rest in VOO. Max out IRA. Don’t you touch until you retire. Then, when you get a job put in more as you go. You can easily be a multimillionaire like this. Compound interest is your bff.
Congrats! 🎉
Same boat, inheriting a large sum from my grandpa who worked his whole life to make sure we'd be taken car of after he died, it's so much responsibility it's scary.
1. Pay off all your loans
2. Finish school debt free
3. Save a chunk for your emergency fund
4. Dump all the rest in the s&p 500 index
5. ?????
6. PROFIT!
$100k in South Carolina. One lucky kid..
This is some great advice.
Terrible advice, actually. Putting the 100k immediately in the market generates statistically better returns than the interest in loans. Taking out student loans is better.
Kudos for him for seeking advice and guidance!! 👏🏾👏🏾👏🏾 Esp. at 19!!!
Im 25 inherited over 400k at 18 and I only spent 50k living life .
My friend took 6 yrs to finish her bachelor's by paying cash at 19 there shoul be no rush. Glad that he have common to ask for advise.
Good kid, accepted that he doesn't know best and sought advice from someone who does, even accepted his own shortcomings. He can really go far
invest your money in retirement accounts and don't touch it
I went to HS with a girl who inherited a substantial amount from her GM her senior year. She lived with her dad only and immediately bought a new Nissan 240SX...she was dead within 4 years of graduation due to drugs and alcohol
:( sad
I have a 240sx but I don’t drink or do drugs
Sounds like a made-up story
Pay for college, set up emergency fund, invest the rest. You will be way ahead of everyone else when you enter the working world.
Time to go on Wall Street Bets. That’s the wisest decision with money.
Don't brag about what you have. I would keep it to myself.
I feel most of these type of calls will end up fine if you have 100k and you’re scared of it it won’t go anywhere
pay for college, 3 mouth emergency funds, invest the rest, and then start putting money form you job into your 401l and i 7 years if he add to it, he could have a HUGE down payment on a house, and money for retirement
My uncle was in this exact situation. He went to college but took out student loans so he’s taking out the max 10,000 a year to pay it. That’s all he used it for and keeps it in the stock account it was in
I wish I was fortunate enough to have this problem !! I would pay off all my debt and invest into my family’s financial future .
set at least 5k to 10k to play with lol he's young so he should enjoy some of it at least. just don't overdue it. you're only young once
That’s a lot of money to throw away
@@bonsaikiss not compared to 100k. as I said in another comment he should start up a business and or buy property to rent out
Antonio ok that’s not realllllly playing with it. Good choice
Number 1 rule don’t spend if u don’t need to!
Stay single
Don’t need to stay single just keep your finances to yourself until marriage
i like that, pay off his debt, pay for school in cash, be debt free and invest the rest so that it pays you
Sorry, it's not logical to pay for college instead of investing. There's no mathematical reasoning, only emotional. You will net more profit by taking out more loans and investing.
Mathematically that is true, but if he is not trained or doesn't understand how that all works then he will not make the right calls in order for that formula to work in his favor.
So the smart and safer move is to not have debt until he knows how to manage it.
One of the best Dave advises. Amount of wisdom and how he span this situation from purely mathematical and common sense (what Anthony said) and into a deeper psychological realm. Dam!
Common Sense will make you rich.
I drop my extra money on my mortgage so I don’t spend it….
INVEST IN YOUR SELF MY DEAR
Sounds like a good problem to have John
My husband left $150K for both of my kids when they turn 18. I hope they have the sense this young man has.
My guy said Washington DC
Wow great advice!
Any 'extra' cash we have we start rationalizing purchases that shouldnt be making.
I just hope he does not buy any expensive cars or trucks. Just invest it
S&P 500 index fund…every penny
I wish I had that opportunity 😭
Get a job, work maybe 15-25 hours a week, and use that money first to cover debt & living expenses, anything else, then you use the $100k
This is some solid advice.