To the point about putting your financial wellbeing first rather than kids' college money: when you take it to the logical conclusion, putting yourself first IS setting your kids up for success, because they won't be stuck managing the crisis you created by not being prepared for retirement.
100% as an only child and my mother is nearing retirement with barely any savings, it ends up putting the burden on me in the end to make sure she has enough in her later years rather than her investing in herself from the beginning.
I think Katie deserves some mad respect. Working 20-25 hrs as a server and still earning $59000 a year? At 4946 a month, if she works 100 hrs (which would be the high end of her weekly averages) thats $49.46 an hour as a server. Quick research says around $17 an hour is average. She must be working her tail off during those 100 hours (and working at a super swanky restaurant).
yea she did great. i was making that as a bouncer and didnt save a penny lol. i mean the EXACT same pay. id be at the club three or two nights a week making 5 gs a month. if I had Ramit then I would have went full time and stacked lol
If you reading the waitressing subreddit or talk with any waiters in dense cities, you quickly realize they are making 30-100 dollars an hour. That less than minimum wage stuff is bs. And good for them!
I love this format. It truly encompasses all walks of life. Seeing someone who makes $59K a year be more financially responsible than a couple who makes $300K a year shows it's not what you make, but what you keep. I have noticed a trend of these high earners in credit card debt with children are almost never willing to give up the private school. My question to them is, are there not any good public schools in your area? I live in Chicago, and CPS has selective enrollment schools, so if your child tests in, you're getting a quality education for free. Them asking for help for tuition while making that much money is the definition of entitlement. Another great video.
Lived in Chicago too and went to public elementary until high school; went catholic. Being tested in is only relevant for north side of Chicago, where majority of the selective enrollment schools are. If you are on the south side, you are better off going Catholic/private .
@@M_SC I understand their perspective. It's an optimistic outlook, but it oversimplifies more complex issues. Still, I see where she's coming from. As for your point, I hear you. The reality is, you need to earn a certain amount of money just to get by-there's no way around that.
@@M_SCnah it’s something to say to people who don’t make more than they need, but still spend it like they do aswell. As a 19 year old kid who started from nothing just graduated HS last year and got my first apt. 5 months after, this is no joke, I make 20 bucks an hour and with discretionary spending and budgeting I can comfortably put 7% into a 401k with match, invest, just finished saving for and paying for a down payment on a used car with a pre approved loan, not to mention all the other misc. expenses like vacation, paying for ubers etc. AND I just started my job this year in April 16.50$ and started making 20anhour in June. Before that I was literally struggling, getting rental assistance and unemployed trying to make anything do. With financial ability anything is possible. Like they said it’s not what you make it’s what you decide to keep
No point wasting money for private primary school period! Maybe higher school if can’t find quality state school or catholic college for fraction of the price
Third couple: "My wife's reckless spending, and my reckless enabling...". Okay, now I want to see what car(s) this guy drives, what his watch or sneaker collection looks like, and what golf clubs he uses.
This was THE MOST helpful video so far. Thank you for including a median income earner, it was so much more relatable. Your advice to all 3 was outstanding, and I enjoy hearing your takes.
@@nathansmith5726 that cannot be your takeaway from the detailed breakdown he did. I guess it's true that some people can only compute simple binary answers 😅
@@nathansmith5726 If she's earning what she is at 20-25 hours a week, doubling her earnings means either getting a higher paying job, working double the hours OR a second job. That seems very reasonable given her goals and her awesome spending habits.
Quick note on Katie's plan to purchase the house, her CSP still showed only $60 for utilities. When you buy your own home, you'll be possibly expanding the amount you pay for utilities by up to like 4 times what you would pay renting. Things like garbage, water, security systems, and HOA fees, are something to highly consider.
That made me laugh out loud so hard. My vacations growing up were exactly the same. Mom packed a cooler for lunch so our family could eat at rest areas on the side of the road on our way down to LA to stay with family. Thanks for keeping it real Ramit!
Same! We sat at the picnic tables and ate homemade sandwiches at the rest stops going to visit our grandparents (our big family vacations!). Our big splurge was getting a soda from the vending machine... but I gotta tell you, we had just as much fun and made just as many memories as we would have if we had gone on big extravagant, expensive vacations.
I don't think we should class them as a true 300k salary couple. There's a huge difference between 300k salary couple and 300k salary with huge credit card debt disaster.
This video totally dismantled a false belief I had that rich people are good stewards of their abundance and poor people aren't! Wow! For a family to have SO MUCH wealth and still be struggling with deep cc debt and financial irresponsibility! It gives me hope that I can turn my more modest situation around! Seeing so many different situations not only shows men that there are infinite ways to get where you want to go, but that you can go where YOU want to go, and not be beholden to someone else's vision of what's right or best. Thank you for so much clarity!
in CSP#1, doing the 3% withdrawal rate wouldn't be a downgrade based on their current lifestyle compared to the 4%. It was forgotten that they wouldn't have to then invest the $1150/mo into their retirement
Really enjoy these CSP analysis videos, Ramit. They bring real-world examples into a relatable format. These and the tiktok roasts are top tier content!
That last couple reaching out to family to help pay for the child’s school bills is extremely SELFISH. Sorry. They make more than enough money and refuse to sacrifice. If I was a family member they wouldn’t get a dime .
It looks selfish, but maybe it isn't. They have gobs of money, but what if their parents have twice as much and nowhere to put it? But maybe the better option is to have the parents give them max untaxable gifts (let's just say on gift to each of them for a total of $36k) to immediately knock down the credit card debt. Then they can pay for the private school themselves, and have the shame of getting bailed out from credit card debt to remind them when they are tempted to spend recklessly again.
The last couple isn't likely to get outnof debt anytime soon. Hopefully they come from a wealthy family because taking money for your child's education but you don't want to cut back on luxury spending while making $300k is wild.
It sounds like the guy is happy to get out of debt, but the wife (who didn’t fill out this application) probably doesn’t care. People don’t accidentally get into debt and have some random TH-camr stop you. She knows she spends to much.
With the third couple, their daughter is 5. She's not even old enough to appreciate the difference between public and private school. If they send her to a public school for her first year or two of school while they get their finances ordered, they can then enroll her in private school whose tuition fits in their budget.
@IAmebAdger - Yeah, but their assets (house & car) total $1,200, 000 so I'm sure they're living in a nice neighborhood with great schools. They could do it for 1-3 years (if they wanted to 😃
I think no need to skip 1-2 years in public school before going private to get their ducks in a row. It’s an easy fix despite 50k in debt. They just need to adjust their allocation. If they use the $500 monthly 529 contribution plus $100-200 to tuition, that should cover it. Problem is if they can adjust coz a lot of this is behavioral issue in their spending habits. Also, that is if tuition is around 7k annually and not 10k or more. They have a huge income but just not well allocated. Just poor financial decisions hence the 50k debt.
@@IAmebAdgerI'm sure the area they are in is a safe environment with their income. The family's obsession with private school in this country is insane.
If their obsession is private school that tells me a lot about them. It's going to be a giant financial burden and they won't be able to save for her college. Which if all that stuff matters to them is fine, I guess. Solve the current schooling now and the future schooling in the future.
Good luck to Katie! How she has changed her financial outcome in the short period of time is amazing. I'm sure she will keep learning, be even better, and make her dream come true!
Thanks for doing this, these are well selected CSP! I think overspenders (those who spend 70%+ on fixed costs) are a bit over represented in the past CSP review videos, so it's refreshing to see the CSP#1 & 2 in this video! Looking forward for more content
My guess is that those who know they're deeply in debt and overspending are more likely to send in a CSP for review than someone with zero debt, frugal lifestyle, who's doing quite well financially.
So Conrad's plan is to have his family fund his child's education so they can keep a pool and a maid service. Sounds good. I want to fly on Delta Plus to Europe so I'll ask my retired mom to pay my mortgage. Talk about financial independence.
i thought i was the only one laughing at the maid service 😭 this guys poor family thinks theyre paying for the kids tuition (which by the way private school at 5yrs old is no different from a public, but to each their own) but theyre actually paying to fund his eccentric lifestyle because it finally caught up to him that he might have to do things by himself instead of someone else doing it for him 😰😰😰😰
Thanks for another great episode. Just cracks me up that a couple makes 330k, has 50k in CC debt, and their family offers to fund their daughter's private school... I wonder where they learned enabling behavior?
Hahaha I love the Sethi family vacation 😂💕 so relatable!! Our family vacations were camping in tents at the campground a mile from our house (at the beach in Carlsbad, I’ll give you that lol)
That third couple seems like they dont want to sacrifice much. But it sounds like they have family with money so they can get away with that. The rest of us who come from modest means cannot.
Couple 1 won't have to decrease lifestyle because currently 11% is going to fund retirement which is no longer happening, so the could easily make it on 3-3.2% withdrawal rate. Also, I guess it depends on how their money will be taxes in retirement vs now - it may be more favorable in retirement if a part of the that money is tax sheltered in a roth IRA, again meaning they would need less in retirement than now
So, this first couple doesn't have homeowners insurance or taxes on their paid for home? Our house is paid off, but taxes and insurance is still about $650/month.
I make the same annual and net $1k less than them monthly. I'd have to drop my 401k and insurance to bring that home. I guess they pay a lot less taxes than I have to.
The insurance portion is either the 15% they didn't account for, or they are self-insuring since you don't need insurance on a paid off house. I personally wouldn't want to take a hit to my investments in the event of a total loss due to a fire or flood at their income and asset level. After some Google Foo, I found 200% of the cost to rebuild the house is a safe number for self-insuring. The tax could be paid out of savings each year and therefore wouldn't get counted or reflect in their CSP since it's not a monthly calculation. There's really not a need to put annual or semi-annual payments in the CSP if it's covered by savings or guilt-free spending.
Our vacations were very similar to Ramits, which wasn't bad when we were going to from OH to TN to visit grandparents, but it sucked when you spent 3 days in a truck traveling to visit my moms family TX. Its crazy because I remember one year where my dad but a futon couch, the ones that were 2 giant cushions sewn together, put it in the back of our truck and that's where we stayed for the whole trip. Only thing worse was riding greyhound for 4 days the year my grandma died and dad couldn't take off work. That was not terrible for me, but my poor mom was traveling with 4 kids, all below the age of 10. Eventually my dad got a conversion van and we thought we were living the good life.
I too had to ride on a mattress in the back of a pick-up. We are so lucky nothing bad happened. My friend rode from the Rocky Mountains to Minnesota sitting on a cooler in van.
I really hope that after his 2025 new book release, maybe closer to 2026, Ramit will place additional focus on his widowed, single and/or divorced subscribers, like those in this video.
Third couple, Conrad: their daughters education I can’t believe that he’s accepting money from his family to help pay for her tuition. I would not I would not do it if I was part of his family. It’s almost like he doesn’t have any pride and not only that, he should just take longer to pay off his debt if he insist that she continue to go instead of asking for donations. It’s ridiculous and this is exactly what the sense of entitlement got him into the situation in the first place.
most do it for the benefit of the kid, not the parents. parents already feel bad and are working hard to fix their financial situation. and as he said.. it's only the first year they are helping with. So not like the parents are relying on the generosity for too long. They do want to pay for the school long term, just need to get rid of the CC debt and build better financial habits.
Can anyone explain how someone living in an upper middle class community is concerned with their public school system? Conrad said he and his wife want their children to have a quality education in a safe environment. Are upper middle class communities unsafe?
For me, it all depends where you live, I believe they were from ATL, I can’t comment on there. But I’m from the SF Bay Area and you could easily make well over $100,000 and house be worth 1,000,000 dollars and still not live a safe/good area.
@CAGChannel1 I was wondering the same thing as OP and that’s a real shame. I grew up in a mid middle class suburb and the public schools were not only safe but had advanced classes available, as well as a program set up with the local community college for high school seniors.
She might be physically safe, but I would not send my children to a public school because the philosophy and moral code does not align with what I believe. I think it's easy for Ramit to make jokes because he has never had a child.
"Quality education" may be a bigger factor. Who knows? Kids get bullied and assaulted everywhere no matter what "no tolerance" to bullying policy may be in place.
In Katie's CSP, saving $1,000 a month she could totally get to that 20% down payment in 5 years, which was her goal. Not doing it today. $12,000/yr adds up quick in just a few years.
@@kickaplan Yep, I had a spreadsheet that I used for this purpose back when I was saving to buy a house. It factored in my savings, real estate average appreciation in the area, and return on house savings account. Let's you project out and see how many years until you can achieve that goal.
She would have enough for the downpayment, but she would also need to factor in moving cost, lawyer fees, furniture, etc. AND THEN also be able to sustain the mortgage, utilities etc. She can buy it, but she can’t afford it (again, all based on the assumption the home is 400k).
I have a $6k/yr (or $500/mo) budget line item for combination vacation and moving expenses. If I don't move one year, I can spend all 6k on vacation, but if I spend 2k on moving can only spend 4k on vacation. I hate moving, but it's hard finding a good apartment in the NYC area (decent wall thickness, decent air quality, recycling, etc.)
So nice to hear a different perspective other than you're a bad person if you have debt. Yes, it's bad, his take is somehow balanced feeling and not trying to make you feel bad about using your money for what you want. Definitely subbed to this and can't wait to read the book.
This is my favourite video series, so interesting and inspiring (plus helps to wait until thé next podcast episode is dropping 😇). Thx Ramit, your work is so valuable🤗
It’s highly localized, but public schools in my urban area have metal detectors, Narcan on hand for overdoses, and regular gang violence. At the very least it’s distracting with poor outcomes to prove it. School systems have degraded in many areas to the point that very little learning takes place, and if you have any other option it’s a necessity if you want a good education for your child.
Even in “bad” areas, kids can excel with parent involvement. School is not a daycare and only as efficient as the parents efforts into their kids education.
@@lucaspm98 I doubt they were dealing with potential gang violence 🤨 With their profile, they would just move or have mentioned magnet schools if that was the case
Hey Ramit! I notice you sometimes call out folks for having "low savings" relative to investments - how much in savings is "enough"? Is it fair to say that if we have 6 months of fixed costs and any specific upcoming expenses (i.e. wedding, new car) then we are all set, and should happily put all $ to investments?
They said "we cut brutally". But not brutally enough to cut their own lawn, clean their own pool, or pick between groceries or meal service lmaoo. Like why do you have a meal service, that's what the groceries are for.
It's because of my love for my kids, not in spite of, that I've applied discipline and rigor to instilling my kids' belief in their abilities and strength to create a great life for themselves, knowing I'll always have their six. Following my parents' examples, I've been able to discipline myself to support, teach and comfort rather than rescue, usurp and sabotage. They've grown into it beautifully, and on their own power!
Well when you have politicians fear mongering about public schools and denigrating teachers some people believe it. Even if they live in an affluent area and the public schools are top tier.
Little gal in public school For one year is going to be just fine. She will only be in 1st grade 💗 not a grade where they want her to excel academically or are worried about peer pressure
@@Callie_FL one more situation that I wish we could do over - I would have them all in private for those very , very fundamental first few grades. The individual attention and so much more was beyond invaluable for my kids that went to. private vs. public in a “ very good” area. Relatives across this nation had similar experiences with a child / children who went to public vs. private in those critical years of getting the “ basics” down. Those that learned whole language vs. phonics in the initial years were hurt the most and never caught up. You would be surprised how bad things have gotten in government schools in the lower grades; it comes down to a roll of the dice on the teacher and directed curriculum in that particular district.
I feel like the goal should rarely be early retirement and rather freedom to work any job regardless of pay level or risk. And most work will pay you something.
So, looking at CSP1, while 3% would mean taking less than they earn now, you could throw in 2 factors which mitigate that. 1) They have children, so by that time they may be leaving or have left home, potentially reducing the cost burden for groceries etc 2) they were putting over $1k a month into that investment for retirement, the 3% (or 4%) is calculated off putting no more money in, so you could argue they`d be $1150x12 (13.8k) lower per year on the expenses also, which at 3% would bridge the small deficit.
….. for the girl saving for a house in Portland. She already has $30K and she’s saving $12k per year so in 5yrs she’ll have $90K so she’s actually fine for a 20% down?
Yeah I feel like he missed the 5 years thing. But he had a point on trying to go to 40 hours a week and upping income so that the monthly is not as hard to achieve
Buying the house and maintaining the house are two different things. Portland has a high cost of living, it wouldn't have been responsible to say that she was ready to buy a house there with part-time income in an unstable field.
The second CSP will not be able to buy a home in Portland Oregon for $400,000 unless they buy an absolute money pit. A lot of the homes in Portland are very old. I’m not kidding. Also Katie, the rental market in Portland is extremely unstable. Vancouver, Wa only minutes across the river might be slightly better. However I can tell you from experience living in Vancouver, WA and working in Portland sucks financially. Oregon will make you pay income tax (even if you’re a WA resident) and what should be a 15 drive could easily be 90min. WA doesn’t have income tax if you work in WA. Also I think Oregon is in the top 10 for property taxes. Just some food for thought. Vancouver definitely isn’t Portland, but lots of Portland folks have moved here and it’s growing super fast. If you live close to the border you can easily shop tax free in Oregon which is also very helpful.
She can head out down the I-205 corridor towards Lents and get a fixer upper and then get roommates. Milwaukie. Canby. But that gal is going to want to live in SE or NE. Rents are so high. So so high.
Re retirement, your assets do not stop growing once you retire, it will grow, so in reality you can tactically rely on the growth, utilising a several year income buffer
We are all humans and have our problems. CSP # 3 was concerning and I can see how lifestyle creep and “competing with the neighbors” happen, especially in a high-end area that they likely live. They likely felt that they had to live that way in order to fit in with their surroundings. The wild part is their small grocery service bill. That seems crazy given their position and how carelessly they spend; I bet that they spend a lot more on food than that. Lastly, there's no way as man that I could accept money for my children’s education from family when my wife and I make nearly $350k a year. Sorry, it’s a pride and honor thing for me. Good luck to them, however.
Only watched the first one, I KNOW several ways besides inheritance. Two I will mention now. He worked for a company that went public and their ESO came woth a lot. Second, he may hve invested in a "hyper grothh stock. (risky, unless you know alot about the industry you were invested in., and a third potential is of course a gambling win. What ever it was, they were smart and didnt spend it at their age, and applied the funds towards investing. I know. I also had about that much at their age.
6:34 drawing "less" than your current income during retirement DOES NOT automatically mean it's a downgrade, DOES NOT automatically mean you have less to spend, since you won't have to put away money for retirement. I wish people would stop talking about income but just focus on expenditure.
That third couple must have things they can sell if they were overspending by 5k a month. Can't take vacations all the time 😂 They probably have the house staff because their house and lawn is too big to clean and maintain on their own. Something to consider when you get a big house in a neighborhood that demands perfect curb appeal 🤷🏾♀️
If the woman who wants to move to Portland ... and can do her current job from home... she should consider moving to Vancouver, Washington (adjacent to Portlant but has no income taxes and homes for the same quality will be less expensive.) All the benefits of Portland are accessible... and many of the problems are avoided.
Really envious of the low fixed costs. I’m at about 50% now, but hoping to decrease that as my income increases over the years. Unfortunately health issues keep my grocery and skincare costs higher than I’d like.
You're right, Ramit. There is no $300K housing in Portland unless you're willing to fix it yourself. We bought our house for $350K in 2019, but it's $450K now. Average 1R rent in Portland is about $1700. Also, the property tax is pretty high even for an old house. (Property tax for a new/newer house is insane.) Our property tax was $3,900 this year.
6:30 you forgot to include the $13,800 they invested per year to the withdrawal rate when comparing to current income. That income that's available to spend freely now, it's kinda like having that much xtra per year so the 3% rate would basically be the same income as the current income.
The 20% down advice differs significantly from person to person. I think its overall better to get in sooner on a nicer house than wait to save up for a larger down payment. And that's coming from someone that did put down 20%. We would have been better off putting down 10% and getting a nicer house honestly.
@@pioneer7777777 ironically the ppl who put 20% down are the ones who don't really need to as they can afford a bigger mortgage, and the people who would struggle to put 20% are the ones who most need to as they need better affordability.
Didnt seem like the last couple learned too much but they have the ability to ask others for help for their daughter’s schooling and are doing well enough to afford taking longer to fix their finances. Overall, I guess it’s good to see they’re communicating more and are weighing what means most to them
I had no idea I would gain so much knowledge and relate so heavily to people making at least 6 times more money than me per year. Somehow our financial situations are very similar.
My wife and I used to live frugally on $65k/year in upstate South Carolina. We had older vehicles that are paid off, our 3-bed, 2-bath house cost $145k, and we avoid major subscription services. Until Abby Joseph Cohen, our financial advisor, started managing our investment portfolio and made us see the need for professional advice. Now it seems as we grow older, we grow wealthier. Complex strategies for managing retirement investments during meltdowns aren't something the average person understands, but Abby’s expertise has been a game-changer for us.
@PoshanMindWell her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Great share! Out of curiosity, I searched Abby Joseph Cohen Services online, found her consulting page ranked at the top, and scheduled a call session. I've read many reviews about advisors, but none seem as impressive as hers.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, she was able to scale this quickly to $150,000.
I would love for my parents to stop calling me for a few bucks here and there. Parents take care of yourself. Hight incomes are not guaranteed in your children's future
Wow interesting CPSs, it would be nice to have more people with the $50K annual salary, that is the median salary in USA and the most relatable for the people.
Just on the off chance that Katie reads the comments, you’re amazing and have accomplished so much! Since you seem to value freedom and simplicity, as me and my partner do, don’t buy a house (and definitely not a condo or anything with a HOA) - I did what you did and got my dream of a place in Washington DC and it’s great and all but houses are an absolute money pit. It’s a purchase, not an investment. People get stuck in ‘starter’ homes - think bigger on what you could do to live your dream like a community you could rent in that focus on shared gardening plots or coops or something. If I could go back, I’d invest in long term investments and put more money into gaining more freedom in my life. Also, just to note I LOVE to garden, and we LOVE DIY’ing - did our bathroom entirely ourselves even. We’re who people think love a house but it still wasn’t the right call. Think long and hard before taking the leap! Good luck to you and yours :)
At $1000/ month, she would need to save for 50 months, which is 4 years 2 months, which is less than her timeline of 5 years and I dont know whether or not you took the down payment fund out of it.
If I'm the 3rd couple I am pulling out of the 529, and using some of the emergency fund as well. 50k in credit card debt is an emergency. They could easily pay it off even faster than 10 months if they treated it like the crisis it is.
We can see your priorities through your spending. If you have a big income but there is no money left for education... Other things were more important than the education. Otherwise that would have been the first thing you save from your income.
hello, I am from Ukraine, and i am 35 years old also, I have lives in the USA for 6 months, I have a permanent resident card, I want to ask a few questions, since I did not find answers to them in your videos, so: 1) should I manage my investments myself on vanguard or pay a commission and entrust it to the platform? 2) how to trust this platform? people from former Soviet Union countries lost money on similar investments when the country collapsed. 3) can you give some personal investment advice? what proportion should there be between investments and deposits in a deposit account?
Not only does she need the money for the down payment, she also needs money for closing costs, inspections, appraisal etc. that come up when you're buying a house. So add about 1-3% of whatever price of the house she buys.
Can someone help me out here. So when they say Invest, is there an area I can invest for short term? For example, I max out my Roth IRA, HSA and company patch for retirement. I believe that should be plenty to retire? I’m also sitting on 100k in cash. I plan on getting married in the next 2 years, getting a house around 2-3 years too. Should I invest more or is sitting on the 100k the better choice.
Did the first couple with the mystery source investment money ever do a follow up? Not seeing it. Wondering if they shared if the money was family money / gift, whatever.
To the point about putting your financial wellbeing first rather than kids' college money: when you take it to the logical conclusion, putting yourself first IS setting your kids up for success, because they won't be stuck managing the crisis you created by not being prepared for retirement.
100% as an only child and my mother is nearing retirement with barely any savings, it ends up putting the burden on me in the end to make sure she has enough in her later years rather than her investing in herself from the beginning.
I've heard lots of people from X and Facebook talking about this one
AWS is still extremely undervalued
very promising
Much better than all those shits altcoin with no utilities
I think Katie deserves some mad respect. Working 20-25 hrs as a server and still earning $59000 a year? At 4946 a month, if she works 100 hrs (which would be the high end of her weekly averages) thats $49.46 an hour as a server. Quick research says around $17 an hour is average. She must be working her tail off during those 100 hours (and working at a super swanky restaurant).
AWS to the moon! 🚀
yea she did great. i was making that as a bouncer and didnt save a penny lol. i mean the EXACT same pay. id be at the club three or two nights a week making 5 gs a month. if I had Ramit then I would have went full time and stacked lol
If you reading the waitressing subreddit or talk with any waiters in dense cities, you quickly realize they are making 30-100 dollars an hour. That less than minimum wage stuff is bs. And good for them!
Tip culture is out of control, that's all.
@@erichcas1778 this. No shade to anyone, but as people keep getting tired of tipping heavily, this will probably change.
I love this format. It truly encompasses all walks of life. Seeing someone who makes $59K a year be more financially responsible than a couple who makes $300K a year shows it's not what you make, but what you keep. I have noticed a trend of these high earners in credit card debt with children are almost never willing to give up the private school. My question to them is, are there not any good public schools in your area? I live in Chicago, and CPS has selective enrollment schools, so if your child tests in, you're getting a quality education for free. Them asking for help for tuition while making that much money is the definition of entitlement. Another great video.
Lived in Chicago too and went to public elementary until high school; went catholic. Being tested in is only relevant for north side of Chicago, where majority of the selective enrollment schools are. If you are on the south side, you are better off going Catholic/private .
Boy it’s boring reading “it’s not what you make it’s what you keep”, which is something to say to people who make more than they need.
@@M_SC I understand their perspective. It's an optimistic outlook, but it oversimplifies more complex issues. Still, I see where she's coming from. As for your point, I hear you. The reality is, you need to earn a certain amount of money just to get by-there's no way around that.
@@M_SCnah it’s something to say to people who don’t make more than they need, but still spend it like they do aswell. As a 19 year old kid who started from nothing just graduated HS last year and got my first apt. 5 months after, this is no joke, I make 20 bucks an hour and with discretionary spending and budgeting I can comfortably put 7% into a 401k with match, invest, just finished saving for and paying for a down payment on a used car with a pre approved loan, not to mention all the other misc. expenses like vacation, paying for ubers etc. AND I just started my job this year in April 16.50$ and started making 20anhour in June. Before that I was literally struggling, getting rental assistance and unemployed trying to make anything do. With financial ability anything is possible. Like they said it’s not what you make it’s what you decide to keep
No point wasting money for private primary school period! Maybe higher school if can’t find quality state school or catholic college for fraction of the price
Third couple: "My wife's reckless spending, and my reckless enabling...". Okay, now I want to see what car(s) this guy drives, what his watch or sneaker collection looks like, and what golf clubs he uses.
Yes! The hisband'scars/motorcycles/tech/ATVs are always glossed over when talking about the wife's spending.
This was THE MOST helpful video so far. Thank you for including a median income earner, it was so much more relatable. Your advice to all 3 was outstanding, and I enjoy hearing your takes.
I’m only 2 min in but the first couple just wanted to flex 😂😂
lolol
100%. 35 year old millionaires with one person staying at home, lmaooo ya'll not worried about nothing. 🤣
I'd bet a paycheck that there was was significant inheritance in that investment balance...
Generational Wealth, people that have it always like to show it off
I was on another channel and a guy was like 'i'm 40 and want to retire early at around 50, I have 5 million saved' . I'm like gtfo 😂😂
I loved the CSP follow ups. These videos feel like an Express version of your podcast. Please keep doing it!
It is funny that not everyone knows about AWS
this is a life changing project
Excited for AWS's potential gains ahead! 🚀
Happy to invest in AWS together!
Feeling positive about AWS's future!
Katie's example was so helpful! Amazing work Katie 👏🏾👏🏾
The only half realistic one there although his advice was pretty bad - yeah just 2x your income lol
@@nathansmith5726 that cannot be your takeaway from the detailed breakdown he did. I guess it's true that some people can only compute simple binary answers 😅
@@nathansmith5726 The advice was actually 'you cannot afford this, unless you 2x your income or do some other wizardry'. Nuance, people.
@@nathansmith5726 If she's earning what she is at 20-25 hours a week, doubling her earnings means either getting a higher paying job, working double the hours OR a second job. That seems very reasonable given her goals and her awesome spending habits.
@nathansmith5726 Not really, if she worked full time she might be able to do that.
Quick note on Katie's plan to purchase the house, her CSP still showed only $60 for utilities. When you buy your own home, you'll be possibly expanding the amount you pay for utilities by up to like 4 times what you would pay renting. Things like garbage, water, security systems, and HOA fees, are something to highly consider.
Exactly. He forgot those expenses will be more.
Ramit accounted for this in adding phantom costs to the mortgage
@@samwilson4754 Maybe, but I think phantom costs are more like roof, water heater, and future high-cost repairs.
Great point! I think people need to be aware of these cost differences when considering buying a house!
He also left out the major fact that she will be splitting the cost with her husband (they do their finances separately).
That made me laugh out loud so hard. My vacations growing up were exactly the same. Mom packed a cooler for lunch so our family could eat at rest areas on the side of the road on our way down to LA to stay with family. Thanks for keeping it real Ramit!
Same! We sat at the picnic tables and ate homemade sandwiches at the rest stops going to visit our grandparents (our big family vacations!). Our big splurge was getting a soda from the vending machine... but I gotta tell you, we had just as much fun and made just as many memories as we would have if we had gone on big extravagant, expensive vacations.
300k salary and have family paying for school. I though I was out of touch 🤣
LOL ikr this is fucked
Showflakes
A privledge to have family stepping in. It seems like they come from money lol
I don't think we should class them as a true 300k salary couple. There's a huge difference between 300k salary couple and 300k salary with huge credit card debt disaster.
@@IAmebAdger they ARE a true 300k salary couple. The choice to spend beyond that extremely high salary is their own.
This video totally dismantled a false belief I had that rich people are good stewards of their abundance and poor people aren't! Wow! For a family to have SO MUCH wealth and still be struggling with deep cc debt and financial irresponsibility! It gives me hope that I can turn my more modest situation around! Seeing so many different situations not only shows men that there are infinite ways to get where you want to go, but that you can go where YOU want to go, and not be beholden to someone else's vision of what's right or best. Thank you for so much clarity!
“The new vacation is walking around your backyard holding hands” 😂😂😂 I’m dying laughing!
Same here! I laughed SO HARD! Lmao
That would work in Our big farm😅
in CSP#1, doing the 3% withdrawal rate wouldn't be a downgrade based on their current lifestyle compared to the 4%. It was forgotten that they wouldn't have to then invest the $1150/mo into their retirement
not to mention if it averages 7% a year growth their money would still compound whilst withdrawing.
Exactly!
@@GodlyhankI think that’s the point of the 4% rule. It accounts for inflation and puts a buffer in case there’s a recession
thanks for sharing, I just bought it
Also will likely have an advantageous tax situation, ie capital gains tax instead of normal income tax
That last couple needs to go on Caleb Hammer stat. They need someone to yell at them even more.
Really enjoy these CSP analysis videos, Ramit. They bring real-world examples into a relatable format. These and the tiktok roasts are top tier content!
That last couple reaching out to family to help pay for the child’s school bills is extremely SELFISH. Sorry. They make more than enough money and refuse to sacrifice. If I was a family member they wouldn’t get a dime .
Grandkids- we will do anything we can for them! ( even if the parents do stupid sh-
Yep. That baby is 5, send them to public school and keep it pushing.
I was just going to comment the same thing! Very selfish
It looks selfish, but maybe it isn't. They have gobs of money, but what if their parents have twice as much and nowhere to put it? But maybe the better option is to have the parents give them max untaxable gifts (let's just say on gift to each of them for a total of $36k) to immediately knock down the credit card debt. Then they can pay for the private school themselves, and have the shame of getting bailed out from credit card debt to remind them when they are tempted to spend recklessly again.
😂”I heard it on tik tok” love it ❤
The last couple isn't likely to get outnof debt anytime soon. Hopefully they come from a wealthy family because taking money for your child's education but you don't want to cut back on luxury spending while making $300k is wild.
It sounds like the guy is happy to get out of debt, but the wife (who didn’t fill out this application) probably doesn’t care. People don’t accidentally get into debt and have some random TH-camr stop you. She knows she spends to much.
@@stephenirving9846she could be just one spoiled brat
With the third couple, their daughter is 5. She's not even old enough to appreciate the difference between public and private school. If they send her to a public school for her first year or two of school while they get their finances ordered, they can then enroll her in private school whose tuition fits in their budget.
Yes, exactly! As long as they can find a good one with a safe environment that is.
@IAmebAdger - Yeah, but their assets (house & car) total $1,200, 000 so I'm sure they're living in a nice neighborhood with great schools. They could do it for 1-3 years (if they wanted to 😃
I think no need to skip 1-2 years in public school before going private to get their ducks in a row. It’s an easy fix despite 50k in debt. They just need to adjust their allocation. If they use the $500 monthly 529 contribution plus $100-200 to tuition, that should cover it. Problem is if they can adjust coz a lot of this is behavioral issue in their spending habits. Also, that is if tuition is around 7k annually and not 10k or more. They have a huge income but just not well allocated. Just poor financial decisions hence the 50k debt.
@@IAmebAdgerI'm sure the area they are in is a safe environment with their income. The family's obsession with private school in this country is insane.
If their obsession is private school that tells me a lot about them. It's going to be a giant financial burden and they won't be able to save for her college. Which if all that stuff matters to them is fine, I guess. Solve the current schooling now and the future schooling in the future.
Good luck to Katie! How she has changed her financial outcome in the short period of time is amazing. I'm sure she will keep learning, be even better, and make her dream come true!
Thanks for doing this, these are well selected CSP! I think overspenders (those who spend 70%+ on fixed costs) are a bit over represented in the past CSP review videos, so it's refreshing to see the CSP#1 & 2 in this video! Looking forward for more content
My guess is that those who know they're deeply in debt and overspending are more likely to send in a CSP for review than someone with zero debt, frugal lifestyle, who's doing quite well financially.
So Conrad's plan is to have his family fund his child's education so they can keep a pool and a maid service. Sounds good. I want to fly on Delta Plus to Europe so I'll ask my retired mom to pay my mortgage. Talk about financial independence.
i thought i was the only one laughing at the maid service 😭 this guys poor family thinks theyre paying for the kids tuition (which by the way private school at 5yrs old is no different from a public, but to each their own) but theyre actually paying to fund his eccentric lifestyle because it finally caught up to him that he might have to do things by himself instead of someone else doing it for him 😰😰😰😰
@@maru8473he must have learned that entitlement from someone…. Parents?
@@loft27ss Private school can do that to a person.
Delta Plus to Europe is not bad at all or hell SAS Business is not that bad. It cost something like 1K USD per ticket and 35K points. EASY MONEY
Whoever edits your videos is top class!
“You guys want me to fix this?” Pulls up sleeves 😂 I freaking love these videos!!!
This is good project from Amazon
I am also AWS Holders 🚀
Feeling optimistic about AWS! 👍
Excited about AWS! Let's see where this journey takes us!
Thrilled about AWS's potential! Happy to be part of this community and looking forward to gains!
Thanks for another great episode. Just cracks me up that a couple makes 330k, has 50k in CC debt, and their family offers to fund their daughter's private school... I wonder where they learned enabling behavior?
Hahaha I love the Sethi family vacation 😂💕 so relatable!! Our family vacations were camping in tents at the campground a mile from our house (at the beach in Carlsbad, I’ll give you that lol)
For 1st couple, also possible Megan banked her income before she became a stay at home mom, allowing them to accumulate a large sum.
Damn, everything I said about all 3 cases someone else said first.
They also paid off their house and student loans. So something still doesn't add up, unless she was a surgeon (but not old enough).
No. Not with a paid off house too at their age.
That third couple seems like they dont want to sacrifice much. But it sounds like they have family with money so they can get away with that. The rest of us who come from modest means cannot.
Couple 1 won't have to decrease lifestyle because currently 11% is going to fund retirement which is no longer happening, so the could easily make it on 3-3.2% withdrawal rate. Also, I guess it depends on how their money will be taxes in retirement vs now - it may be more favorable in retirement if a part of the that money is tax sheltered in a roth IRA, again meaning they would need less in retirement than now
So, this first couple doesn't have homeowners insurance or taxes on their paid for home? Our house is paid off, but taxes and insurance is still about $650/month.
I make the same annual and net $1k less than them monthly. I'd have to drop my 401k and insurance to bring that home. I guess they pay a lot less taxes than I have to.
Right? Property tax does not go away when you pay your mortgage off.
They are probably very frugal and not actually spending the 15% for miscellaneous, which would help cover that
@@nodsib I get that, but was surprised it wasn't in their budget. Even though it's a semiannual expense for us, I still budget for it monthly.
The insurance portion is either the 15% they didn't account for, or they are self-insuring since you don't need insurance on a paid off house. I personally wouldn't want to take a hit to my investments in the event of a total loss due to a fire or flood at their income and asset level. After some Google Foo, I found 200% of the cost to rebuild the house is a safe number for self-insuring. The tax could be paid out of savings each year and therefore wouldn't get counted or reflect in their CSP since it's not a monthly calculation. There's really not a need to put annual or semi-annual payments in the CSP if it's covered by savings or guilt-free spending.
Not convinced the last couple will change much, especially since their "transparency" led to their families helping fund the schooling.
Our vacations were very similar to Ramits, which wasn't bad when we were going to from OH to TN to visit grandparents, but it sucked when you spent 3 days in a truck traveling to visit my moms family TX. Its crazy because I remember one year where my dad but a futon couch, the ones that were 2 giant cushions sewn together, put it in the back of our truck and that's where we stayed for the whole trip. Only thing worse was riding greyhound for 4 days the year my grandma died and dad couldn't take off work. That was not terrible for me, but my poor mom was traveling with 4 kids, all below the age of 10. Eventually my dad got a conversion van and we thought we were living the good life.
I too had to ride on a mattress in the back of a pick-up. We are so lucky nothing bad happened. My friend rode from the Rocky Mountains to Minnesota sitting on a cooler in van.
Your mom is a superhero
I really hope that after his 2025 new book release, maybe closer to 2026, Ramit will place additional focus on his widowed, single and/or divorced subscribers, like those in this video.
The original book is applicable to anyone.
Katie is goals. Bravo!
Third couple, Conrad: their daughters education I can’t believe that he’s accepting money from his family to help pay for her tuition. I would not I would not do it if I was part of his family. It’s almost like he doesn’t have any pride and not only that, he should just take longer to pay off his debt if he insist that she continue to go instead of asking for donations. It’s ridiculous and this is exactly what the sense of entitlement got him into the situation in the first place.
Grandkids - you might see someday. It’s different.
most do it for the benefit of the kid, not the parents. parents already feel bad and are working hard to fix their financial situation. and as he said.. it's only the first year they are helping with. So not like the parents are relying on the generosity for too long. They do want to pay for the school long term, just need to get rid of the CC debt and build better financial habits.
@@kingsgold I'd believe that but they insist on keeping their maid and pool service so it's not like they're living a tough life.
@@MissGirl1450Right. It would be different if they were really struggling to make ends meet, but at $300k they have plenty of ends to meet 😂
Kept the maid and pool clean but had to ask the family for tuition - ridiculous!
Can anyone explain how someone living in an upper middle class community is concerned with their public school system? Conrad said he and his wife want their children to have a quality education in a safe environment. Are upper middle class communities unsafe?
For me, it all depends where you live, I believe they were from ATL, I can’t comment on there. But I’m from the SF Bay Area and you could easily make well over $100,000 and house be worth 1,000,000 dollars and still not live a safe/good area.
Yep, they can have very sucky public schools. Things are soooo different now
@CAGChannel1 I was wondering the same thing as OP and that’s a real shame. I grew up in a mid middle class suburb and the public schools were not only safe but had advanced classes available, as well as a program set up with the local community college for high school seniors.
She might be physically safe, but I would not send my children to a public school because the philosophy and moral code does not align with what I believe. I think it's easy for Ramit to make jokes because he has never had a child.
"Quality education" may be a bigger factor. Who knows? Kids get bullied and assaulted everywhere no matter what "no tolerance" to bullying policy may be in place.
In Katie's CSP, saving $1,000 a month she could totally get to that 20% down payment in 5 years, which was her goal. Not doing it today. $12,000/yr adds up quick in just a few years.
I was hoping someone else would pick up on this. Surprised Ramit didn't account for how much she'd save towards the down payment in 5 years.
@@kickaplan Yep, I had a spreadsheet that I used for this purpose back when I was saving to buy a house. It factored in my savings, real estate average appreciation in the area, and return on house savings account. Let's you project out and see how many years until you can achieve that goal.
She would have enough for the downpayment, but she would also need to factor in moving cost, lawyer fees, furniture, etc. AND THEN also be able to sustain the mortgage, utilities etc. She can buy it, but she can’t afford it (again, all based on the assumption the home is 400k).
@@Iykyk003 She's already also saving up for moving costs.
Within five years is different from in five years. Within five years can be in 1,2,3, or 4 years.
I have a $6k/yr (or $500/mo) budget line item for combination vacation and moving expenses. If I don't move one year, I can spend all 6k on vacation, but if I spend 2k on moving can only spend 4k on vacation. I hate moving, but it's hard finding a good apartment in the NYC area (decent wall thickness, decent air quality, recycling, etc.)
So nice to hear a different perspective other than you're a bad person if you have debt. Yes, it's bad, his take is somehow balanced feeling and not trying to make you feel bad about using your money for what you want. Definitely subbed to this and can't wait to read the book.
This is my favourite video series, so interesting and inspiring (plus helps to wait until thé next podcast episode is dropping 😇). Thx Ramit, your work is so valuable🤗
Private schools is such a racket. Just be an active parent and save the money.
Disagree. Public school is not what it was for previous generations. I was shocked, even in a so called “ nice” area.
Agreed. There's other ways to address academic or extracurricular gaps without spending college tuition money on k-12 education
It’s highly localized, but public schools in my urban area have metal detectors, Narcan on hand for overdoses, and regular gang violence. At the very least it’s distracting with poor outcomes to prove it.
School systems have degraded in many areas to the point that very little learning takes place, and if you have any other option it’s a necessity if you want a good education for your child.
Even in “bad” areas, kids can excel with parent involvement. School is not a daycare and only as efficient as the parents efforts into their kids education.
@@lucaspm98 I doubt they were dealing with potential gang violence 🤨 With their profile, they would just move or have mentioned magnet schools if that was the case
I like seeing these videos with all income levels, it's interesting to think about your own lifestyle choices.
Hey Ramit! I notice you sometimes call out folks for having "low savings" relative to investments - how much in savings is "enough"?
Is it fair to say that if we have 6 months of fixed costs and any specific upcoming expenses (i.e. wedding, new car) then we are all set, and should happily put all $ to investments?
I loved hearing Katie’s breakdown and she’s right, that was a refreshing (relatable!) change
Yikes CSP 3. We cut mercilessly, have a 2k credit card payment, but also budge $500 for vacation. WUT
They said "we cut brutally".
But not brutally enough to cut their own lawn, clean their own pool, or pick between groceries or meal service lmaoo. Like why do you have a meal service, that's what the groceries are for.
I feel SO much more equipped to handle my finances. This video was so so so incredibly helpful! Thank you Ramit!
It's because of my love for my kids, not in spite of, that I've applied discipline and rigor to instilling my kids' belief in their abilities and strength to create a great life for themselves, knowing I'll always have their six. Following my parents' examples, I've been able to discipline myself to support, teach and comfort rather than rescue, usurp and sabotage. They've grown into it beautifully, and on their own power!
Everybody is so scared of public school lol
Yeah it's giving "social fragility" 😂
The anxieties of the white middle class
Ignoring the fact that private school teachers don’t need to be credentialed and private schools don’t need to follow a curriculum 🤪
Well when you have politicians fear mongering about public schools and denigrating teachers some people believe it. Even if they live in an affluent area and the public schools are top tier.
@@navysubwife85yeah it might even be the most prevalent in those affluent areas, oddly enough
I feel so seen right now! I'm also struggling with debt and trying to balance saving for the future. Thanks for sharing this detailed breakdown.
Little gal in public school
For one year is going to be just fine. She will only be in 1st grade 💗 not a grade where they want her to excel academically or are worried about peer pressure
Have you seen public school lately , depending on where they are? It ain’t the school I went to; that’s for sure.
@@CAGChannel1Do you really think their 4k/month mortgage home is in a bad school district? 😂
@@Callie_FL doesn’t have to be . Take a deep dive. Even in “,good” areas, it is not good in many places. It is not like the prior generations.
@@Callie_FL one more situation that I wish we could do over - I would have them all in private for those very , very fundamental first few grades. The individual attention and so much more was beyond invaluable for my kids that went to. private vs. public in a “ very good” area. Relatives across this nation had similar experiences with a child / children who went to public vs. private in those critical years of getting the “ basics” down. Those that learned whole language vs. phonics in the initial years were hurt the most and never caught up. You would be surprised how bad things have gotten in government schools in the lower grades; it comes down to a roll of the dice on the teacher and directed curriculum in that particular district.
First one was just a humble brag.
They weren’t really humble lol. Someone clearly gave them a ton of money but they presented it as “Look how well we’ve done.”
Please make this a weekly type of video (if you can)! It's so helpful when Ramit goes through everyday people's finances and breaks it down.
I share CSP analyses almost every week on my newsletter: iwt.com/youtube
This was such an impactful video! Really appreciate this one Ramhit
I feel like the goal should rarely be early retirement and rather freedom to work any job regardless of pay level or risk. And most work will pay you something.
So, looking at CSP1, while 3% would mean taking less than they earn now, you could throw in 2 factors which mitigate that.
1) They have children, so by that time they may be leaving or have left home, potentially reducing the cost burden for groceries etc
2) they were putting over $1k a month into that investment for retirement, the 3% (or 4%) is calculated off putting no more money in, so you could argue they`d be $1150x12 (13.8k) lower per year on the expenses also, which at 3% would bridge the small deficit.
Conrad's follow up is... concerning
A lot of self affirmation and hedging lol
Wife’s fault; not mine! Makes me wonder what side of the family is paying for daughter’s school.
….. for the girl saving for a house in Portland. She already has $30K and she’s saving $12k per year so in 5yrs she’ll have $90K so she’s actually fine for a 20% down?
and she also said she’d be splitting the mortgage with a partner
Yeah I feel like he missed the 5 years thing. But he had a point on trying to go to 40 hours a week and upping income so that the monthly is not as hard to achieve
Buying the house and maintaining the house are two different things. Portland has a high cost of living, it wouldn't have been responsible to say that she was ready to buy a house there with part-time income in an unstable field.
I noticed that too, he kept missing the fact that she plans to safe for the next 5 years
@@vulpixelful I agree, just pointing out the basic math of it all
About the third couples daughter “I’m sure she’s wonderful, she’s great, she colors - whatever!” 😂 LOL
I laughed too hard at that 😂😂
Me too, why was that so funny 😂
What do you think sets AWS apart from other projects? It seems to be dominating discussions lately
lets PUMP this to the sky guys!!
When the world knows this, we already x50 🚀
The second CSP will not be able to buy a home in Portland Oregon for $400,000 unless they buy an absolute money pit. A lot of the homes in Portland are very old. I’m not kidding. Also Katie, the rental market in Portland is extremely unstable. Vancouver, Wa only minutes across the river might be slightly better. However I can tell you from experience living in Vancouver, WA and working in Portland sucks financially. Oregon will make you pay income tax (even if you’re a WA resident) and what should be a 15 drive could easily be 90min. WA doesn’t have income tax if you work in WA. Also I think Oregon is in the top 10 for property taxes. Just some food for thought. Vancouver definitely isn’t Portland, but lots of Portland folks have moved here and it’s growing super fast. If you live close to the border you can easily shop tax free in Oregon which is also very helpful.
She can head out down the I-205 corridor towards Lents and get a fixer upper and then get roommates. Milwaukie. Canby. But that gal is going to want to live in SE or NE. Rents are so high. So so high.
Re retirement, your assets do not stop growing once you retire, it will grow, so in reality you can tactically rely on the growth, utilising a several year income buffer
Exactly
Katie is an absolute beast! Taking serious notes from her.
The reactions to the SCP #3 was mad funny LMAO. People really out here making outrageous financial decisions
We are all humans and have our problems. CSP # 3 was concerning and I can see how lifestyle creep and “competing with the neighbors” happen, especially in a high-end area that they likely live. They likely felt that they had to live that way in order to fit in with their surroundings.
The wild part is their small grocery service bill. That seems crazy given their position and how carelessly they spend; I bet that they spend a lot more on food than that.
Lastly, there's no way as man that I could accept money for my children’s education from family when my wife and I make nearly $350k a year. Sorry, it’s a pride and honor thing for me. Good luck to them, however.
My favorite moment was you showing the picture and talking about about how your family took vacations growing up.
Only watched the first one, I KNOW several ways besides inheritance. Two I will mention now. He worked for a company that went public and their ESO came woth a lot. Second, he may hve invested in a "hyper grothh stock. (risky, unless you know alot about the industry you were invested in., and a third potential is of course a gambling win. What ever it was, they were smart and didnt spend it at their age, and applied the funds towards investing. I know. I also had about that much at their age.
Love these episodes
6:34 drawing "less" than your current income during retirement DOES NOT automatically mean it's a downgrade, DOES NOT automatically mean you have less to spend, since you won't have to put away money for retirement. I wish people would stop talking about income but just focus on expenditure.
Great one Ramit!!! This is one of the best ones with comparison.
Your videos always make a difference!
Was there a follow-up video for CSP #1? Time stamp? 🚨
No
The second person feels like a YNABer. Purposeful planning for "true expenses".
Yes!! Felt the same. I have been a YNABer for 5 years and just recently started paying attention to Ramit. I love how the two work together.
That third couple must have things they can sell if they were overspending by 5k a month. Can't take vacations all the time 😂 They probably have the house staff because their house and lawn is too big to clean and maintain on their own. Something to consider when you get a big house in a neighborhood that demands perfect curb appeal 🤷🏾♀️
If the woman who wants to move to Portland ... and can do her current job from home... she should consider moving to Vancouver, Washington (adjacent to Portlant but has no income taxes and homes for the same quality will be less expensive.) All the benefits of Portland are accessible... and many of the problems are avoided.
She works at a restaurant & fills in as a Library Substitute.
Really envious of the low fixed costs. I’m at about 50% now, but hoping to decrease that as my income increases over the years. Unfortunately health issues keep my grocery and skincare costs higher than I’d like.
You're right, Ramit. There is no $300K housing in Portland unless you're willing to fix it yourself. We bought our house for $350K in 2019, but it's $450K now. Average 1R rent in Portland is about $1700. Also, the property tax is pretty high even for an old house. (Property tax for a new/newer house is insane.) Our property tax was $3,900 this year.
It was $7,100 for our 1st house which was a new construction.
6:30 you forgot to include the $13,800 they invested per year to the withdrawal rate when comparing to current income. That income that's available to spend freely now, it's kinda like having that much xtra per year so the 3% rate would basically be the same income as the current income.
lol!! That was our vacations too! We would drive from Louisiana to Los Angeles to visit and stay with family and food was packed for the trip. Lol
We brought our own food even in the rare times we went to an actual amusement park. We shut down those canopied picnic table areas 😂
The 20% down advice differs significantly from person to person. I think its overall better to get in sooner on a nicer house than wait to save up for a larger down payment. And that's coming from someone that did put down 20%. We would have been better off putting down 10% and getting a nicer house honestly.
@@pioneer7777777 ironically the ppl who put 20% down are the ones who don't really need to as they can afford a bigger mortgage, and the people who would struggle to put 20% are the ones who most need to as they need better affordability.
Didnt seem like the last couple learned too much but they have the ability to ask others for help for their daughter’s schooling and are doing well enough to afford taking longer to fix their finances. Overall, I guess it’s good to see they’re communicating more and are weighing what means most to them
I had no idea I would gain so much knowledge and relate so heavily to people making at least 6 times more money than me per year. Somehow our financial situations are very similar.
My wife and I used to live frugally on $65k/year in upstate South Carolina. We had older vehicles that are paid off, our 3-bed, 2-bath house cost $145k, and we avoid major subscription services. Until Abby Joseph Cohen, our financial advisor, started managing our investment portfolio and made us see the need for professional advice. Now it seems as we grow older, we grow wealthier. Complex strategies for managing retirement investments during meltdowns aren't something the average person understands, but Abby’s expertise has been a game-changer for us.
@PoshanMindWell her name is 'ABBY JOSEPH COHEN SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Great share! Out of curiosity, I searched Abby Joseph Cohen Services online, found her consulting page ranked at the top, and scheduled a call session. I've read many reviews about advisors, but none seem as impressive as hers.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Abby Joseph Cohen. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, she was able to scale this quickly to $150,000.
❤❤
It's quite reassuring to meet other beneficiaries of Abby's expertise
I would love for my parents to stop calling me for a few bucks here and there. Parents take care of yourself. Hight incomes are not guaranteed in your children's future
In the 3rd CSP could Ramit not see the 900 dollars in utility costs ??? That’s a really high number
Wow interesting CPSs, it would be nice to have more people with the $50K annual salary, that is the median salary in USA and the most relatable for the people.
Just on the off chance that Katie reads the comments, you’re amazing and have accomplished so much! Since you seem to value freedom and simplicity, as me and my partner do, don’t buy a house (and definitely not a condo or anything with a HOA) - I did what you did and got my dream of a place in Washington DC and it’s great and all but houses are an absolute money pit. It’s a purchase, not an investment. People get stuck in ‘starter’ homes - think bigger on what you could do to live your dream like a community you could rent in that focus on shared gardening plots or coops or something. If I could go back, I’d invest in long term investments and put more money into gaining more freedom in my life. Also, just to note I LOVE to garden, and we LOVE DIY’ing - did our bathroom entirely ourselves even. We’re who people think love a house but it still wasn’t the right call. Think long and hard before taking the leap! Good luck to you and yours :)
At $1000/ month, she would need to save for 50 months, which is 4 years 2 months, which is less than her timeline of 5 years and I dont know whether or not you took the down payment fund out of it.
Any chance you’ll upload these to the podcast too? I love these but don’t get a chance to watch them very often.
No, these are for TH-cam only
@@ramitsethi I understand. Thank you!
Question- for the Fixed #, is it a percentage off of Gross or Net?
If I'm the 3rd couple I am pulling out of the 529, and using some of the emergency fund as well. 50k in credit card debt is an emergency. They could easily pay it off even faster than 10 months if they treated it like the crisis it is.
I’m a new mom and really want a cleaner once a month on hard items like ceiling, windows, etc. what would be good cost for cleaning?
I loved this! This is so, so helpful. I'll be submitting mine as well in hopes you review it
For #2 she said she'd still be splitting housing expenses with her partner in Portland, but your analysis assumed she wouldn't
We can see your priorities through your spending. If you have a big income but there is no money left for education... Other things were more important than the education. Otherwise that would have been the first thing you save from your income.
Wow, really good advice here, thank you!
What’s the website for that investment calculator?
hello, I am from Ukraine, and i am 35 years old also, I have lives in the USA for 6 months, I have a permanent resident card, I want to ask a few questions, since I did not find answers to them in your videos, so: 1) should I manage my investments myself on vanguard or pay a commission and entrust it to the platform? 2) how to trust this platform? people from former Soviet Union countries lost money on similar investments when the country collapsed. 3) can you give some personal investment advice? what proportion should there be between investments and deposits in a deposit account?
Not only does she need the money for the down payment, she also needs money for closing costs, inspections, appraisal etc. that come up when you're buying a house. So add about 1-3% of whatever price of the house she buys.
Can someone help me out here. So when they say Invest, is there an area I can invest for short term? For example, I max out my Roth IRA, HSA and company patch for retirement. I believe that should be plenty to retire? I’m also sitting on 100k in cash. I plan on getting married in the next 2 years, getting a house around 2-3 years too. Should I invest more or is sitting on the 100k the better choice.
Are people including their retirement funds as investments? I struggle to equate the two since it is in not as liquid as other investments.
Did the first couple with the mystery source investment money ever do a follow up? Not seeing it. Wondering if they shared if the money was family money / gift, whatever.