Living below your means" adjust your lifest, be frugal, budget, save and invest. This helped me out as a 6 figure earner. I've grown over a million in retirement savings with this method
Lilly NY , 32. I Just started at my six figure job after being in and out of the poverty line. I really hope I don't end up like this. I'm scared really scared!!!
@@momtalksbudget5407 Don't panic, start out easy, don't buy things you don't need, budget every money, always save a portion of your pay atleast 5%, Invest from your pay check; it grows and helps you accumulate wealth easily.
I'm always working on contentment, I re organize my living space everytime I get the urge of buying a house although we're not ready yet. Just make your space work for now, it really isn't forever.
I wouldn't call it "good money." A senior accountant in 1985 made US$60,000. That's $150,000 in today's money. That's just what salaries are supposed to be, but the problem is that not all professional salaries have kept pace with inflation, so it sounds like a lot. In addition, on the coasts, the price of housing has skyrocketed. $60,000 was the price of a home in the 80's. Today, a home in Los Angeles is going for 800,000 or more. The same can be said for college tuition and student loans. Those who are first generation college graduates will need time to accumulate wealth, and that usually begins by paying off debt. 6 figures isn't 6 figures anymore... it used to be people who made that much money came from wealthy families, got their tuition paid for, got help from their parents, and they could afford the lifestyle creep and image maintaining that was associated with higher-paying professional jobs.
My father struggled with debt and always told me not to spend money that I didn't have unless you planned to pay it off in a month or two with my "play money". I learned to appreciate my hard earned money and wanted my purchases to be worth the cost. Fast forward to today, $360k home and cars are all paid for before the age 36. Now, I'm showing my teenaged sons what they should do to beat my timeline.
The reality is that sacrifices have to be made early on. This includes not looking at friends, neighbors, etc. and understanding that, if your situation allows for it, investments have to take priority. This includes stocks, retirement, and real estate. It takes education and discipline, but it's the only way to ensure financial freedom in life.
I really loved these points! Saving for another baby, saving to get a bigger emergency fund, saving for mini goals, and still trying to enjoy life can get so overwhelming. But knowing this is just momentary is so refreshing and rejuvenating! Thanks 🙏 I think delving into the finance world has been exciting but it’s also hard to not want to get everything accomplished super fast.
$100,000 really is not a lot of money. Yes, if your making that much your ahead of most other people but when most people are behind that salary just allows you to live semi comfortable. You can afford for all your daily needs, saving, a few luxuries, and be better prepared for the future but your definitely not rolling in dough like people make it seem.
It's so hard to avoid increasing your spending over time, I completely agree. We live in a society that always tells us we deserve to have more, practicing gratitude for what we have is such a good skill to practice. I've literally been working at it with a gratitude journal since the pandemic started. It feels a bit nerdy, but it makes bad days feel so much better and helps me not indulge in 'retail therapy' 😂
@@howtoadultschool Having a gratitude journal is a great way to keep the positive in your life! We started sharing 5 positive things from the day, every night with our kids. It definitely helps us have a better atmosphere in our home!
You have to create a budget and stick with it. You have to track your income, expenses, and savings rate meticulously. I make under $60,000 now and will continue doing this even when I make $100,000.
True! I was budgeting when I was still in college, when I just graduated and working minimum wage, and now when I am making more! it keeps me aware of lifestyle creep and be more intentional of what I am willing to pay more (valuable to me) and what is just nonsense to me.
Exactly!! I been doing it off a salary less than 20,000 and soon now my pay will be 5x but I will still not spend more. I will be spending little as possible. I will be making 100,000 once I graduate and I already have a job that agreeed to pay me nearly 80,000 starting off once I’m done with college.
It all depends on where you live. Average income in the US to have a comfortable living and be able to afford the necessities is like 70k. That's the average in all of the US. I you live in a big city it's much much higher. In California where I live the income that's needed to afford a home and be comfortable is 230K+. This is the reason why 6 figure income people feel like they're still living pay check to paycheck.
I’m the first comment. Woohoo! I’m glad I found this video because I’m a computer engineering student, and I’ll soon be looking for a high paying job. I definitely now know how to be smart with my money.
At least you will graduate with a good degree. I hear of too many getting in debt to the tune of &75-100K but end up with a degree in gender studies or history and the jobs they are qualified for with that degree pay $30K. They didn't choose wisely when it comes to degree selection. You did.
I love this! Going down to the water is my contentment activity too. I miss it during the winter here, and take as much advantage during the summer as I can.
It's because we are disassociated from the human being we will be in the distant future...so we devote all resources in the here and now. Unfortunately, culture today makes discontent and lifestyle creep very easy. It practically encourages the mindset. So we buy more stuff than we should. Necessities and this extra stuff we buy just happens to be really expensive relative to our earnings. Price of higher education is borderline extortion. But we're told it's a necessity so we need to pay that price to get the high wage jobs...so we can then buy more expensive stuff with that job..as we're saddled with debt...and on and on. It sucks.
yes, learned most of these the hard way over the last few years. but i do agree, your income will rise to the occasion if you're happy / content. i was feeling all these things badly right before my year review and then it magically went well and i started chipping away at the little expenses - cell phone, health insurance, car insurance - just making sure i was intentionally paying for these things and i found a way to save a total of 25% of my income (from raised income and lowered expenses). now this is just temporary, and more expenses will come up (gas increases, rent increases, etc.) but it does feel like i finally got a handle on my income and expenses so honestly, it's as if i finally stopped being caught under the waves and now im able to keep my head above water. thank you for this video, I'm sure it's helping so many people! 🙏🙏🙏
Great points and a very helpful video. I'm someone who has always thrived well in a better environment. So I maxed out my environment but im feeling nervous about it since it costs so much more. I need to accept and appreciate where I am and what I'm doing. And then I can reorganize the budget to adapt the new setting, while reaping the benefits of getting what I asked for
My point is that $100k doesn't seem to go as far as it once did. Especially if you live in a HCOL like we do. I don't live above my means and also I feel that I need to make well above $100k to afford a home in San Diego.
After 401k, health care and taxes. It’s like $5k a month if you are on a single income and have a $2k mortgage, $500-$700 car payment, student loans, groceries etc you don’t have a lot left over
I think people don't understand the definition of living paycheck to paycheck. Spending everything you make doesn't mean you're living paycheck to paycheck. That's just being financially irresponsible. With that mentality, I'm sure it's possible to make 7 figures and live paycheck to paycheck. What it actually means is, after you pay all of your required expenses to survive like your rent, food and utility bills, you don't have anything left over. I think millennials believe that taking vacations, buying expensive clothes and accessories, leasing nice cars, regularly going to bars and restaurants is subsistence level living. It's like the "I work hard, why shouldn't I be able to do all the things I want" mentality.
exactly right, they're entitled. not that the cost of living hasn't gone up, but consumerism is very high rn and people will just frivolously spend spend spend
Sometimes it's hard to stay motivated but knowing there are others like me and my wife working towards financial goals helps. Also child care is so expensive 😱 😂
$100,000 is roughly $8335 dollars a month. Even with rent, food,car payments, child care, insurance, and so on and so forth if you wanted to you could make it work. Even having kids. Your biggest expense is gonna be rent so its better to buy than rent. A lot of mortgages are cheaper that rentals. Remember your throwing your money down the toilet renting. However you also want to be able to pay the house off that you buy. That's why it's smart to buy a town home 🏡 they tend to be cheaper. Also good idea to live on the outskirts a little if the housing seems to be more reasonable. Rents are just going to keep rising so to keep renting is just dumb. You also could be putting away $2000 a month and saving $24,000 yearly. You simply act like you only make $6335 a month and you adjust. We all can adjust. Anyways it's better to find the most reasonable rent, save,.save save and buy something reasonable. Not something that cost $800,000 to a million. Something that's like $300,000 to $500,000. Townhouses are even cheaper then this. Anyways you can make it work and if have a Air b and B then your really on the up and up. It's all about perspective. Find streams of income you can make that is beyond that money you usually make. $100,000 a year is still good money but you gotta be wise with it and not spend it friviously.
I didn't realize how expensive it would be to have children and continue to work full-time. We had our son in 2015 and care was $185/week. When our daughter was born in 2019, it was $350/week. Not to mention the $7,000 we owed the hospital for her birth.
Mara L. And think about it….every one of the illegals coming across the border will have children here for FREE. Nobody to bill, no address to send the bill too. And they will get free healthcare and childcare for many many years. Almost 3 million people this year. All considered homeless, but yet we have a homeless problem in the US already.
I always find it interesting when the different generations are compared. High student loans today are shocking but here in Australia only 1% of females and 2% of males in 1976 went on to university and only 4% total went on in 1987. In the 1960s only 48% completed high school and in the 1970s it rose to 63%. My mother stopped school in grade 9, my father year 11 (but he went on to do a trade apprenticeship). Back then if you could get a job you left school. How many millennials would be willing to give up the internet for a student loan free life? As far as housing goes they paid interest rates of greater than 15% and often bought on the outskirts of cities, which with population increases have become absorbed and yes the realestate is worth more. If one does the same now, buy where you can afford in 40 years time chances are it too will be surrounded by infrastructure and be worth a pretty penny, but you have to play the waiting game like they did. I don’t think too many of us would really choose to swap life circumstances with our parents if it came right down to it .... and 1970 medical and dental care?? Give me present day painkillers any day.
I hope you aren't saying you and Kyle live paycheck to paycheck? You save a TON of money for investing in stocks, sinking funds (car, mortgage), vacations, and are able to buy stuff like massages, alcohol, going out to eat, etc. Also, living in a high cost of living area like California is going to require more income.
This video made me feel a lot better. I've been feeling super drained because I'm currently in my debt payoff journey and it feels like it's never gonna end, and I also just started a new job that is really overwhelming me. My goal is to be debt free by Thanksgiving of this year, I'm hoping and praying it happens 🙏 Thank you for putting me at ease a little bit and reminding me that I'm not alone in the way I'm feeling 🙂. My favorite activities that bring me contentment are taking my dog for a nice 6 mile walk to the shoreline and back and relaxing in my living room with the candles burning after a long day.
I love this video Justine! I just found out we're expecting our second baby. I'm not sure if I want to return to work outside of the home for babies first year. Adjusting our budget for what is necessary in the next two years is such a relief rather than stressing about investments, saving for a house ect.
Exactly. I had to remind myself that the budget needs to reflect immediate needs right now: a nanny, formula, diapers, etc. Then once we get everything under control again, we can add back in our investments.
Does living paycheck to paycheck mean people aren’t putting money in savings? I’ve never really understood that. For example we do zero based budgeting and put all extra into savings at the end of the month so technically does that mean we live paycheck to paycheck?
I think living paycheck to paycheck can mean different things. If you missed a few paychecks, could you still cover your living expenses? If you have enough cash reserves to miss a few paychecks, then you are not living paycheck to paycheck. If you NEED your next few paychecks to cover the monthly budget then are you are living paycheck to paycheck.
When I wrote this list of “what brings me joy without costing $”, it makes me realize how much of a consumer I have been (conditioning??) and how I want to back away from all that... like wow thanks for that advice 100%
yeah when it comes down to it - there are a lot of things that cost money that can also bring joy (attending a football game, doing HH, going on vacation) but hopefully you came up with a good list of no spend activities!
If you’re making 100k and still living paycheck to paycheck that just means you’re not budgeting and living beyond your means. Stop trying to impress others with your purchases.
People spend money they don’t have, to buy things they can’t afford, to impress people they don’t like. I don’t feel sorry for the greedy/irresponsible for these people. There is a difference between income & wealth. Stop spending your money on liabilities instead of assets. If they double their incomes tomorrow, they’d just double the debt/bills they have. It’s called stupidity. I don’t feel sorry for you.
Thank you for this. I feel frustrated at times when I see family and friends traveling, going out, buying new cars. We just moved to a much nicer location and climate. We can't afford much, but love were we live now.
My wife and I are 28 and debt free. One of the best decisions we made was not going to grad school. It didn’t make sense at the time and I’m so glad we didn’t go into debt for that since our careers are going really well and a grad degree would not have made any difference. IMO grad school doesn’t make sense for most career paths.
Financial education is so vital today. It should be mandatory curriculum in our K-12 schools. As mandatory as math, english, and science. Ninety percent of money problems are due to poor money management. Most people think more income would be the perfect resolution. But the lack of financial education always rears its ugly head in a short time. You see people paying $600-$800 a month for a brand new car. But then have trouble paying the rent or buying food. Many can't balance a checkbook, or calculate interest, or maintain a budget, etc, etc, etc.
Good for you. Saving for the car is cash. Proud of you. I just recently purchased mine out of a lease, but was able to get a 2% rate at a credit union. I had the cash but took the 2% loan instead
I agree with most of this, but I don’t think it’s a hard truth that your income will rise to the occasion. Sometimes the reality is that it won’t. We’ve been married & living in San Diego for 15 years (I grew up north of here). With our position & circumstances, it’s been impossible to keep up with cost of living. We do make 6 figures, no debt, humble older cars paid off, emergency fund & money for a down payment (still saving) - but it’s just not enough fast enough. We’ve even considered commuting as far as Murrieta, but with this last year having moved the goal posts even further, we are now starting to feel like it’s coming to a time where we need to make a choice. Maybe it’s because my kids are 6 & 12 I’m feeling that time pressure more, but we simply can’t stay in a 2 bed 1 bath no yard for 2-5 more years, especially with some of our circumstances. Pricing out other places & seeing the ease in burden makes us wonder if we’d have a better quality of life elsewhere. I think sometimes you have to compromise and know when enough is enough. But we are still having a conversation about it.
I can see your point. And also I think you're right - if the income doesn't increase then it is time to start having those conversations about compromising and doing what's best for your family.
They have to stay downtown/uptown paying $2k to $4k in rent for a one bedroom nice car, eating out all the time, shopping every week and then boom reality hits I made 150k and don't have 10k saved.
once you have kids, you can stop right there. here in CA, each kid is $1000/month for child care. 2 kids, 2K/month. That's like a utility bill. the most basic. No bells and whistles. Anything else just adds on top of that. So save money BEFORE kids.
I make $40k w $40k in student loans and there were times where I did live paycheck to paycheck but I never *had* to. It’s a budget problem not an income problem. It was my choice to spend recklessly.
Great video. I make about $120k a year and feel like we're broke. Bills are about $3500 a month and I have about that same amount left over for gas, food, entertainment, etc. Some months we run out of money and have to stop spending for a couple days til I get paid again. It's exhausting. I tell my wife and son, that $60 pants and $200 shoes are just too much for a 13 year old.. they seem to disagree. We obviously have spending problems and it's hard to fix.
My perspective was the fact that 6-figure millennials are trying to do all of the things like saving for retirement, a home, and staying on top of expenses that it feels like living paycheck to paycheck.
I think the reason why Henry's feel broke is because 100k is not what it used to be. Also the pressure is true; these days most people are good at showing off status! Even if it's invented. Now imagine what would happen if everything made money. Lifestyle creep is dangerous!
My Strategy is simple. Always have a minimum cash on hand level in the bank account before spending big . Eg: lets say my monthly expenses = $3k , take that number and multiply by 12 months . The minimum is $36k. After that, keep increasing that minimum based on your comfort level. My ideal minimum cash on hand now is $150k. I have paid off student loan, mortgage, and 2 new cars by using this method.
The only relevant point in this video is the Inflation bit. People in post WWI Germany also had a lot of money. Yeah. 2 Billion Marks for a loaf of bread. You ought to either demand that your employer pay you at least enough to cover inflation or find someone else who will or start your own business. At least, you did not mention side hustle as a solution to this stuff. Having to side-hustle to cover the inflation gap is an abomination.
@@DebtFreeMillennials ohh!! I assumed small town, smaller school! My mom grew up close to manhattan, so I am pretty familiar with the area! Love your channel. Great to see fellow debt free millennials
How you feel may not be reality. If you asked me I would tell you I've always lived paycheck to paycheck. If you are saving for anything you are not living paycheck to paycheck. Somehow ended up with pension, IRA's Social Security , 4vehicles yearly vacations , paid off house. But always lived paycheck to paycheck. Part of that paycheck went into all those things I just listed,
U must have a really expensive lifestyle if u make 6 figures living paycheck to paycheck. I got no sympathy for these people. Most of these people spend an enormous amount of money of worthless items. No u don’t need a Benz. Ur kid doesn’t need an iPhone. U don’t need a house. No u don’t need materialistic stuff. Live like a peasant and a rat 🐀. & u will save quite a bit of money.
Living below your means" adjust your lifest, be frugal, budget, save and invest. This helped me out as a 6 figure earner. I've grown over a million in retirement savings with this method
The term HENRY. Is really so hilarious. Sadly there's actually people living paycheck to paycheck
Great Job friend . You said it all right there!
the term Henry is so funny. I literally laughed whenever it was mentioned in the video
Ps: my first time hearing it
Lilly NY , 32. I Just started at my six figure job after being in and out of the poverty line. I really hope I don't end up like this. I'm scared really scared!!!
@@momtalksbudget5407 Don't panic, start out easy, don't buy things you don't need, budget every money, always save a portion of your pay atleast 5%, Invest from your pay check; it grows and helps you accumulate wealth easily.
I'm always working on contentment, I re organize my living space everytime I get the urge of buying a house although we're not ready yet. Just make your space work for now, it really isn't forever.
I wouldn't call it "good money." A senior accountant in 1985 made US$60,000. That's $150,000 in today's money. That's just what salaries are supposed to be, but the problem is that not all professional salaries have kept pace with inflation, so it sounds like a lot. In addition, on the coasts, the price of housing has skyrocketed. $60,000 was the price of a home in the 80's. Today, a home in Los Angeles is going for 800,000 or more. The same can be said for college tuition and student loans. Those who are first generation college graduates will need time to accumulate wealth, and that usually begins by paying off debt. 6 figures isn't 6 figures anymore... it used to be people who made that much money came from wealthy families, got their tuition paid for, got help from their parents, and they could afford the lifestyle creep and image maintaining that was associated with higher-paying professional jobs.
My father struggled with debt and always told me not to spend money that I didn't have unless you planned to pay it off in a month or two with my "play money". I learned to appreciate my hard earned money and wanted my purchases to be worth the cost. Fast forward to today, $360k home and cars are all paid for before the age 36. Now, I'm showing my teenaged sons what they should do to beat my timeline.
Dude, that's seriously impressive. On what gross household income?
Good luck with inflation. At least you can pass on your home to your teenage kid one day
The reality is that sacrifices have to be made early on. This includes not looking at friends, neighbors, etc. and understanding that, if your situation allows for it, investments have to take priority. This includes stocks, retirement, and real estate. It takes education and discipline, but it's the only way to ensure financial freedom in life.
I really loved these points! Saving for another baby, saving to get a bigger emergency fund, saving for mini goals, and still trying to enjoy life can get so overwhelming. But knowing this is just momentary is so refreshing and rejuvenating! Thanks 🙏 I think delving into the finance world has been exciting but it’s also hard to not want to get everything accomplished super fast.
$100,000 really is not a lot of money. Yes, if your making that much your ahead of most other people but when most people are behind that salary just allows you to live semi comfortable. You can afford for all your daily needs, saving, a few luxuries, and be better prepared for the future but your definitely not rolling in dough like people make it seem.
Right!!! 100K means somewhat poor but not starving.
A single person earning $100k puts you into the 10% earners in the US
Lifestyle creep is the hardest for me! We don't make that much, and are trying to be content with our lives, and the things we do have!
It's so hard to avoid increasing your spending over time, I completely agree. We live in a society that always tells us we deserve to have more, practicing gratitude for what we have is such a good skill to practice. I've literally been working at it with a gratitude journal since the pandemic started. It feels a bit nerdy, but it makes bad days feel so much better and helps me not indulge in 'retail therapy' 😂
@@howtoadultschool Having a gratitude journal is a great way to keep the positive in your life! We started sharing 5 positive things from the day, every night with our kids. It definitely helps us have a better atmosphere in our home!
You have to create a budget and stick with it. You have to track your income, expenses, and savings rate meticulously. I make under $60,000 now and will continue doing this even when I make $100,000.
Budgeting is a lifelong skill!
True! I was budgeting when I was still in college, when I just graduated and working minimum wage, and now when I am making more! it keeps me aware of lifestyle creep and be more intentional of what I am willing to pay more (valuable to me) and what is just nonsense to me.
Exactly!! I been doing it off a salary less than 20,000 and soon now my pay will be 5x but I will still not spend more. I will be spending little as possible. I will be making 100,000 once I graduate and I already have a job that agreeed to pay me nearly 80,000 starting off once I’m done with college.
It all depends on where you live. Average income in the US to have a comfortable living and be able to afford the necessities is like 70k. That's the average in all of the US. I you live in a big city it's much much higher. In California where I live the income that's needed to afford a home and be comfortable is 230K+. This is the reason why 6 figure income people feel like they're still living pay check to paycheck.
Amen to finding joy in contentment. Learn to be happy with the simple things. Once you learn to be happy with the simple things in life, you've won.
Tell that to my 13 year old. He thinks $300 shoes are the only way to be happy...
All goes to mortgage intetest on a million dollar home in Vancouver. You need to go to the foodbank to subsize your survival costs
I’m the first comment. Woohoo! I’m glad I found this video because I’m a computer engineering student, and I’ll soon be looking for a high paying job. I definitely now know how to be smart with my money.
At least you will graduate with a good degree. I hear of too many getting in debt to the tune of &75-100K but end up with a degree in gender studies or history and the jobs they are qualified for with that degree pay $30K. They didn't choose wisely when it comes to degree selection. You did.
My favorite “contentment activity” is going for a walk at the beach at least once a week.
I love this! Going down to the water is my contentment activity too. I miss it during the winter here, and take as much advantage during the summer as I can.
@@howtoadultschool why limit going outside to just summer? I run at the beach in blizzards lol
It's because we are disassociated from the human being we will be in the distant future...so we devote all resources in the here and now. Unfortunately, culture today makes discontent and lifestyle creep very easy. It practically encourages the mindset. So we buy more stuff than we should. Necessities and this extra stuff we buy just happens to be really expensive relative to our earnings. Price of higher education is borderline extortion. But we're told it's a necessity so we need to pay that price to get the high wage jobs...so we can then buy more expensive stuff with that job..as we're saddled with debt...and on and on. It sucks.
yes, learned most of these the hard way over the last few years. but i do agree, your income will rise to the occasion if you're happy / content. i was feeling all these things badly right before my year review and then it magically went well and i started chipping away at the little expenses - cell phone, health insurance, car insurance - just making sure i was intentionally paying for these things and i found a way to save a total of 25% of my income (from raised income and lowered expenses). now this is just temporary, and more expenses will come up (gas increases, rent increases, etc.) but it does feel like i finally got a handle on my income and expenses so honestly, it's as if i finally stopped being caught under the waves and now im able to keep my head above water. thank you for this video, I'm sure it's helping so many people! 🙏🙏🙏
I’m one of the 60%. I agree and am debt free lol
Great points and a very helpful video. I'm someone who has always thrived well in a better environment. So I maxed out my environment but im feeling nervous about it since it costs so much more. I need to accept and appreciate where I am and what I'm doing. And then I can reorganize the budget to adapt the new setting, while reaping the benefits of getting what I asked for
Anyone who earns 100k and think they can't afford shit is living way above their means 🤷
My point is that $100k doesn't seem to go as far as it once did. Especially if you live in a HCOL like we do. I don't live above my means and also I feel that I need to make well above $100k to afford a home in San Diego.
@@DebtFreeMillennials in California you’d better be making a million a year 😂 taxes are bad there too.
After 401k, health care and taxes. It’s like $5k a month if you are on a single income and have a $2k mortgage, $500-$700 car payment, student loans, groceries etc you don’t have a lot left over
I think people don't understand the definition of living paycheck to paycheck. Spending everything you make doesn't mean you're living paycheck to paycheck. That's just being financially irresponsible. With that mentality, I'm sure it's possible to make 7 figures and live paycheck to paycheck. What it actually means is, after you pay all of your required expenses to survive like your rent, food and utility bills, you don't have anything left over. I think millennials believe that taking vacations, buying expensive clothes and accessories, leasing nice cars, regularly going to bars and restaurants is subsistence level living. It's like the "I work hard, why shouldn't I be able to do all the things I want" mentality.
exactly right, they're entitled. not that the cost of living hasn't gone up, but consumerism is very high rn and people will just frivolously spend spend spend
Sometimes it's hard to stay motivated but knowing there are others like me and my wife working towards financial goals helps. Also child care is so expensive 😱 😂
We're all in the same boat!
$100,000 is roughly $8335 dollars a month. Even with rent, food,car payments, child care, insurance, and so on and so forth if you wanted to you could make it work. Even having kids.
Your biggest expense is gonna be rent so its better to buy than rent. A lot of mortgages are cheaper that rentals. Remember your throwing your money down the toilet renting. However you also want to be able to pay the house off that you buy. That's why it's smart to buy a town home 🏡 they tend to be cheaper. Also good idea to live on the outskirts a little if the housing seems to be more reasonable. Rents are just going to keep rising so to keep renting is just dumb. You also could be putting away $2000 a month and saving $24,000 yearly. You simply act like you only make $6335 a month and you adjust. We all can adjust. Anyways it's better to find the most reasonable rent, save,.save save and buy something reasonable. Not something that cost $800,000 to a million. Something that's like $300,000 to $500,000. Townhouses are even cheaper then this. Anyways you can make it work and if have a Air b and B then your really on the up and up. It's all about perspective. Find streams of income you can make that is beyond that money you usually make. $100,000 a year is still good money but you gotta be wise with it and not spend it friviously.
That is before taxes, 401k, health insurance. $100k doesn’t go as far as it once did.
@@brandoncone6965 Right medians homes when from 200K to 400K....
I didn't realize how expensive it would be to have children and continue to work full-time. We had our son in 2015 and care was $185/week. When our daughter was born in 2019, it was $350/week. Not to mention the $7,000 we owed the hospital for her birth.
Mara L. And think about it….every one of the illegals coming across the border will have children here for FREE. Nobody to bill, no address to send the bill too. And they will get free healthcare and childcare for many many years. Almost 3 million people this year. All considered homeless, but yet we have a homeless problem in the US already.
I always find it interesting when the different generations are compared. High student loans today are shocking but here in Australia only 1% of females and 2% of males in 1976 went on to university and only 4% total went on in 1987. In the 1960s only 48% completed high school and in the 1970s it rose to 63%. My mother stopped school in grade 9, my father year 11 (but he went on to do a trade apprenticeship). Back then if you could get a job you left school. How many millennials would be willing to give up the internet for a student loan free life? As far as housing goes they paid interest rates of greater than 15% and often bought on the outskirts of cities, which with population increases have become absorbed and yes the realestate is worth more. If one does the same now, buy where you can afford in 40 years time chances are it too will be surrounded by infrastructure and be worth a pretty penny, but you have to play the waiting game like they did. I don’t think too many of us would really choose to swap life circumstances with our parents if it came right down to it .... and 1970 medical and dental care?? Give me present day painkillers any day.
This was super resonant. Thank you, Justine 🙂
Woww super great video thank you!!!
I hope you aren't saying you and Kyle live paycheck to paycheck? You save a TON of money for investing in stocks, sinking funds (car, mortgage), vacations, and are able to buy stuff like massages, alcohol, going out to eat, etc. Also, living in a high cost of living area like California is going to require more income.
Yeah, she's either a liar or just a moron. Nothing she's saying remotely makes any sense
Great advice (stuff each generation has to learn through experience)
Great video, love this stuff! I need to make more content like this. Keep it up
This video made me feel a lot better. I've been feeling super drained because I'm currently in my debt payoff journey and it feels like it's never gonna end, and I also just started a new job that is really overwhelming me. My goal is to be debt free by Thanksgiving of this year, I'm hoping and praying it happens 🙏
Thank you for putting me at ease a little bit and reminding me that I'm not alone in the way I'm feeling 🙂.
My favorite activities that bring me contentment are taking my dog for a nice 6 mile walk to the shoreline and back and relaxing in my living room with the candles burning after a long day.
Just wondering if you managed to be debt free and are managing with the lifestyle creep? Or other bills?
That’s a no lol
I love this video Justine!
I just found out we're expecting our second baby. I'm not sure if I want to return to work outside of the home for babies first year. Adjusting our budget for what is necessary in the next two years is such a relief rather than stressing about investments, saving for a house ect.
Exactly. I had to remind myself that the budget needs to reflect immediate needs right now: a nanny, formula, diapers, etc. Then once we get everything under control again, we can add back in our investments.
👏🏾💯👏🏾💯👏🏾💯
Does living paycheck to paycheck mean people aren’t putting money in savings? I’ve never really understood that. For example we do zero based budgeting and put all extra into savings at the end of the month so technically does that mean we live paycheck to paycheck?
No it does not. You have money left by your next paycheck so you aren’t living paycheck to paycheck
I think living paycheck to paycheck can mean different things. If you missed a few paychecks, could you still cover your living expenses? If you have enough cash reserves to miss a few paychecks, then you are not living paycheck to paycheck. If you NEED your next few paychecks to cover the monthly budget then are you are living paycheck to paycheck.
@@NadyaPena-01- bingo!
When I wrote this list of “what brings me joy without costing $”, it makes me realize how much of a consumer I have been (conditioning??) and how I want to back away from all that... like wow thanks for that advice 100%
yeah when it comes down to it - there are a lot of things that cost money that can also bring joy (attending a football game, doing HH, going on vacation) but hopefully you came up with a good list of no spend activities!
If you’re making 100k and still living paycheck to paycheck that just means you’re not budgeting and living beyond your means. Stop trying to impress others with your purchases.
I needed that
Great video. Totally relate
this woman just called 100k a year a decent amount of money
A fellow Kansan! Great advice!
People spend money they don’t have, to buy things they can’t afford, to impress people they don’t like. I don’t feel sorry for the greedy/irresponsible for these people. There is a difference between income & wealth. Stop spending your money on liabilities instead of assets. If they double their incomes tomorrow, they’d just double the debt/bills they have. It’s called stupidity. I don’t feel sorry for you.
Thank you for this. I feel frustrated at times when I see family and friends traveling, going out, buying new cars. We just moved to a much nicer location and climate. We can't afford much, but love were we live now.
My wife and I are 28 and debt free. One of the best decisions we made was not going to grad school. It didn’t make sense at the time and I’m so glad we didn’t go into debt for that since our careers are going really well and a grad degree would not have made any difference. IMO grad school doesn’t make sense for most career paths.
What is your career?
@@mukaniwatkins2598I work in tech as a customer success manager
Financial education is so vital today. It should be mandatory curriculum in our K-12 schools. As mandatory as math, english, and science. Ninety percent of money problems are due to poor money management. Most people think more income would be the perfect resolution. But the lack of financial education always rears its ugly head in a short time. You see people paying $600-$800 a month for a brand new car. But then have trouble paying the rent or buying food. Many can't balance a checkbook, or calculate interest, or maintain a budget, etc, etc, etc.
False I could buy more making $12 an hour than I could make $6. Income does impact outcomes....
Good for you. Saving for the car is cash. Proud of you. I just recently purchased mine out of a lease, but was able to get a 2% rate at a credit union. I had the cash but took the 2% loan instead
Theres only one reason, they spend money on dumb, unnecessary shit!! Tryna keep up with the joneses...stop the insanity!!
exactly
I agree with most of this, but I don’t think it’s a hard truth that your income will rise to the occasion. Sometimes the reality is that it won’t.
We’ve been married & living in San Diego for 15 years (I grew up north of here). With our position & circumstances, it’s been impossible to keep up with cost of living. We do make 6 figures, no debt, humble older cars paid off, emergency fund & money for a down payment (still saving) - but it’s just not enough fast enough. We’ve even considered commuting as far as Murrieta, but with this last year having moved the goal posts even further, we are now starting to feel like it’s coming to a time where we need to make a choice. Maybe it’s because my kids are 6 & 12 I’m feeling that time pressure more, but we simply can’t stay in a 2 bed 1 bath no yard for 2-5 more years, especially with some of our circumstances. Pricing out other places & seeing the ease in burden makes us wonder if we’d have a better quality of life elsewhere. I think sometimes you have to compromise and know when enough is enough. But we are still having a conversation about it.
I can see your point. And also I think you're right - if the income doesn't increase then it is time to start having those conversations about compromising and doing what's best for your family.
This is a great point.
They have to stay downtown/uptown paying $2k to $4k in rent for a one bedroom nice car, eating out all the time, shopping every week and then boom reality hits I made 150k and don't have 10k saved.
Rent
once you have kids, you can stop right there. here in CA, each kid is $1000/month for child care. 2 kids, 2K/month. That's like a utility bill. the most basic. No bells and whistles. Anything else just adds on top of that. So save money BEFORE kids.
I saw this article and felt it was click-baity
I make $40k w $40k in student loans and there were times where I did live paycheck to paycheck but I never *had* to. It’s a budget problem not an income problem. It was my choice to spend recklessly.
Great video. I make about $120k a year and feel like we're broke. Bills are about $3500 a month and I have about that same amount left over for gas, food, entertainment, etc. Some months we run out of money and have to stop spending for a couple days til I get paid again. It's exhausting. I tell my wife and son, that $60 pants and $200 shoes are just too much for a 13 year old.. they seem to disagree. We obviously have spending problems and it's hard to fix.
I don’t even make over 23 thousand a year smh. I feel like I live paycheck to paycheck monthly. That is why I budget..
Well yeah but your still working poor even with you budget.....
Surely she can't be referring to her situation. She has done many videos on how much they save as they strive towards home ownership.
My perspective was the fact that 6-figure millennials are trying to do all of the things like saving for retirement, a home, and staying on top of expenses that it feels like living paycheck to paycheck.
I think the reason why Henry's feel broke is because 100k is not what it used to be. Also the pressure is true; these days most people are good at showing off status! Even if it's invented. Now imagine what would happen if everything made money. Lifestyle creep is dangerous!
6 figures just ain’t what it used to be unless you’re making like 250K to half a million.
Funny. When I was 19 I always wanted a ford escort zx2 lol!
My Strategy is simple. Always have a minimum cash on hand level in the bank account before spending big . Eg: lets say my monthly expenses = $3k , take that number and multiply by 12 months . The minimum is $36k. After that, keep increasing that minimum based on your comfort level. My ideal minimum cash on hand now is $150k. I have paid off student loan, mortgage, and 2 new cars by using this method.
What was your total income vs. what was your total expenses? I smell CR*P because you should not have cash if you ran short or broke even!!!
The only relevant point in this video is the Inflation bit. People in post WWI Germany also had a lot of money. Yeah. 2 Billion Marks for a loaf of bread. You ought to either demand that your employer pay you at least enough to cover inflation or find someone else who will or start your own business. At least, you did not mention side hustle as a solution to this stuff. Having to side-hustle to cover the inflation gap is an abomination.
Small town, college town Kansas? I guess Emporia or maybe Pittsburgh
Manhattan! Not as small as Emporia or Pittsburgh.
@@DebtFreeMillennials ohh!! I assumed small town, smaller school! My mom grew up close to manhattan, so I am pretty familiar with the area! Love your channel. Great to see fellow debt free millennials
How you feel may not be reality. If you asked me I would tell you I've always lived paycheck to paycheck. If you are saving for anything you are not living paycheck to paycheck. Somehow ended up with pension, IRA's Social Security , 4vehicles yearly vacations , paid off house. But always lived paycheck to paycheck. Part of that paycheck went into all those things I just listed,
Hell yeah life's not worth living...
Wait, life is DEFINITELY worth living!
No surprise here lol
U must have a really expensive lifestyle if u make 6 figures living paycheck to paycheck. I got no sympathy for these people. Most of these people spend an enormous amount of money of worthless items. No u don’t need a Benz. Ur kid doesn’t need an iPhone. U don’t need a house. No u don’t need materialistic stuff. Live like a peasant and a rat 🐀. & u will save quite a bit of money.
They might be from for reasons...
This is full of crap
You all spend too much on coffee and other things.