As a parent of two grown kids, I want to emphasize the point on overspending on your kids. When they are in the newborn to 7yr-old range, they are just as happy with a $10 toy as they are with the swanky uber-popular toy du jour. Also, don't shower them with dozens of these $10 toys to substitute 'quality' with quantity. They'll tend to value each toy less if there are piles of them everywhere - not to mention the mess they'll create. Ever step on a Lego with bare feet? Not good.
My wife and I had our wedding last June at a Wedding Hall in Guri, Namyangju, South Korea. Our total expenditures came out to around ten million won or about $8,500 at the time. Thankfully, as you know, wedding attendees in Korea bring gift money. By the end, our entire wedding was paid for by our guests!
My dad learn his lesson at 64. He lost his retirement savings (as well as our joint mutual fund) to some bogus business opportunity targeting retirees. He didn't dare to tell me, worried that I'll be shocked, until my mom spills the secret. When I found out, he has 7k on his credit card debt and he show me how he's planning to pay it of with his meager pension. He said it'll take years. I told him that's stupid, he'd pay 3x more the original amount. And I just paid off all his debt in one go, all 7k something. I'm not mad. He's the best dad ever. He funded my college and I have 0 student loan. He paid down-payment for my first car. He's just a bit gullible. This is the least I could do. Now he enjoy his days doing simple things, the biggest headache I'm sure it's just my nagging mother hahahahaha!
@@DGA-808 Sure, happy to. I used credit cards to keep up with my friends. Eating out, clothes, home decor, other lifestyle stuff all purchased on credit cards. Then as I made more and more money, I kept increasing my lifestyle expenses. I make a little over $140,000/year and STILL LIVE PAYCHECK TO PAYCHECK. My credit card utilization is so high that's it's lowering my credit score and I'm paying $100s in interest each month. So finally I had enough and came up with a budget to pay off $30K in debt by the end of the year. I'm down to $22k now. Moral of the story: BUDGET, SAVE, USE CREDIT WISELY, INVEST and really focus on financial literacy.
Thanks for all your videos. I’ve learned so much from them. I’m a MBA and there are so many things you don’t learn in school that you have to learn in real life. You learn from your mistakes but like my Dad said “is cheaper if you learn from someone else mistakes”. Keep bringing more vids. 👍
My biggest mistake to date was probably paying off my mortgage early. I knew it was a mistake, that I’d make more keeping all that equity invested in stocks, but my wife and I just wanted to be debt free. It was a liberating experience, and it did a lot for our peace of mind, but I know we would have made significantly more in the long run if we’d been patient.
I am a new subscriber to your channel. I just wanted to say I love your transparency and honesty regarding your own money mistakes. Not a lot of people can provide the details of your past financial mistakes to the world.
Thank you for your humility and talking about your mistakes. I was extremely lucky that my parents and sisters made many of these mistakes and they educated me about them before I made them myself.
The more I listen, the more I like this chanel. Most TH-camrs come here and give you fomo. This guy gives his mistakes and I made the same, ie the credit card at college. I'm a first generation immigrant too so I do connect to this level. Right now I'm working on nit spending money on lunch at work and building my reserve. I'm excited to finally believe in myself and to grow!
I love watching your channel because I can relate to all of your money mistakes as I made almost all of them. I've learned on my own and am much better at it, but I still have anxiety if I have enough.
To be vulnerable, after watching this I double-checked the mutual fund a college buddy signed me up in and saw I was paying nearly 6% in contribution fees. Immediately called Vanguard to create an account and roll it over. Thank you for the quality content, sir!
Thankyou for sharing your mistakes and what you should've done with us! Often, people hide these mistakes and don't help others. You do. Much appreciated!
You know the wedding money has resulted in beautiful photos! You both look amazing and happy! But I get the point… we tried to keep it very small and super simple and still cost us around 20K
This video not only made me look back at all the dumb youthful financial decisions I made, but also made me remember how much I have changed as I grew up.
Currently engaged. I would advise looking at local community centers. They’re nice, can usually hold 200-300 people and the total amount for the venue it’s self is around 2-4k.
Tae, new to the channel and am loving every video! A common thread I'm seeing across most of your mistakes is "living beyond your means". I wish it were not so cultural in America (or any capitalist economy/society) to always spend more and spend bigger - especially without understanding what you're really signing up for responsibility-wise.
I’ve truly learned more from you about investments and financial health in the last few months, than I have in the last decade. Definitely wish I knew all of this in my 20s, and thanks for another great video, Tae!
"Dont over spend on housing you can't afford." That's not usually the issue. The problem is housing is to expensive in general now. So many company's that were selling homes new construction and old are buying up and switching over to long term rental homes and apartments now and increasing rent prices astronomically. 😑
That’s absolutely a problem but Tae’s point is valid for a lot of people too. We’ve been marketed to want 3 bathrooms, media room, games room with bar etc. so end up in places bigger than we need. I was pre-approved for a way larger mortgage than I could comfortably afford, but luckily I had already decided on my limit. Location can be an overspender too. Friends were adamant on being downtown close to “the action” and wouldn’t consider housing 20 mins out towards the burbs that were a fraction of the cost for the same size.
I bought a penny stock at 1.3 cents and went to 15.5 cents. The rumor was that it was going to go to 20 cents in which case I would sell. It never came and 18 months after those highs I sold at 1.2 cents.
The 401k might screw you if you pay the marginal tax rate when you withdraw the funds in retirement. Consider a taxable brokerage and the beneficial long term capital gains tax brackets.
Parents get guilted into buying too much, and high end/designer brand stuff for their babies. You don’t need a fully outfitted nursery and a full closet before baby comes. I say buy what you need at the time. My kids never used their crib or playpen, and one was born early and tiny so the pre-purchased clothes never fit before the seasons changed -money wasted. And second hand or yard sales are amazing since kids outgrow things so quickly. I’ve often purchased used toys and clothes and was able to resell them for cost or a profit when my kiddos were done with them.
If you don't look at your past financial self and shake your head, you're not learning. It's a great thing to change habits and not make past mistakes!
My bigger mistake was to live over my posibilities at the moment, I bought a Pc with my credit card that I was able to pay month by month, not a big deal, silly me, I lost my wallet and my phone, my dad lost his job, my sister is on her last years of university, I was too far away from my job so I had to take uber some times and all of us went sick and we are 8 people on the house, I was able to get a better job so I sent my 2 week notice then the employer resigned after they told me my start date for availability when I said and I have recorded that I was Available for all shifts, I was stupid enough to not ask for a written proof or the contract... Well, I'm trying to get a new job now and paid the minimum payments atleast of the credit cards and if the company was stupid enough to not understand a fucking easy sentence that's a Red Flag. Thanks for the video, appreciate it.
If you're a high income earner, would you recommend regular 401k, to reduce taxable income now, or Roth 401k, don't get the reduction now but be able to take money that as compounded interest over time, tax free after 59-1/2yo?
Withdrawals from traditional 401k are taxed as normal income. Think about the tax bracket you’re in now, and the tax bracket you expect to be in when you are eligible to withdraw. Gov will likely raise income tax by the time you retire, and via Required Minimum Distributions(RMD) they force you to take out money. Roth has no RMDs.
Great video Tae. Looks like your wedding was a big event, congrats! I noticed you mainly recommend US stock for investing, what are your thoughts on VT?
I see your 87k and raise you 208. Now that beings said I’m in a pslf and it’ll be forgiven in 4 years and Covid has been amazing since I haven’t had to pay for nearly 3 years but those months have all counted towards forgiveness
Didn't hold a wedding, used instead 5000 USD on a 1 week holiday at a 5 star resort with my wife and a private pool connected to the room. Best 5000 USD every spent.
Buy a nice videogame system like a Nintendo Switch, and spend time with your kids playing videogames, spend just enough as a one-time splurge but it will reduce your overall spending on toys that will end up at Goodwill!
I tell new moms all the time not to go overboard on buying clothes, shoes, and toys because most of the time it’s a waste of money. They grow so fast, they won’t wear half of it and spend more time in pajamas then anything else. I’d say invest in cloth diapers or spend more money on diapers and formula. If you can, breastfeed!! It saves A LOT! If you breastfeed then put some of that money towards food cost (you will drink more water and eat more at first until your body regulates). But yeah people will give you clothes and shoes so take what you can get for free. I definitely agree about the wedding part. That’s way too much to spend on one day and most of the time people just come to eat, get free drinks then leave 😂. All that to please some people who’s just there for the food and free drinks 🤣😭
Actually disgusted the uni is putting their slogans on credit cards. A credit card with your schools logo and some swag, what teenager wouldn’t want that! Guess it helped learn the lesson earlier. But don’t they already make enough sending us into student debt for years and years? So wrong
I’m 18 and about to go to college and I’ve got about 10,000 saved and I want to invest it. Would you recommend investing right now or waiting to see if the market drops lower? Also, should I ignore individual stocks and volatile etfs/funds and only look towards more stable ones like vfiax? Or would it be a better idea to have a majority invested in large indexes and set aside a smaller amount to invest in growth etfs?
@@MeltingRubberZ28 probably best case scenario I’ll have around 70K debt but that’s a generous and rough estimate, basically just my full tuition minus what scholarships I have and not taking into account my projected net worth by then.
Keep applying for scholarships throughout your undergrad. I never stopped applying, pocketed 40k in reimbursements and graduated debt free. Also, common advice is to dollar cost into the market. Not what I do, but it’s what most people recommend. Personally I think the market is going to get smoked going into Q2 from 50 basis point rate hike in March and bad Q1 earnings so I’m waiting.
@@Karma-hy6ki Only you can answer that question. Everyone has different income, standard of living and financial goals. Expensive things can be worth it if you can easily afford them and they don't interfere with your other financial goals.
As a parent of two grown kids, I want to emphasize the point on overspending on your kids. When they are in the newborn to 7yr-old range, they are just as happy with a $10 toy as they are with the swanky uber-popular toy du jour. Also, don't shower them with dozens of these $10 toys to substitute 'quality' with quantity. They'll tend to value each toy less if there are piles of them everywhere - not to mention the mess they'll create. Ever step on a Lego with bare feet? Not good.
Exactly and it makes them overwhelmed having so many options to play with. They rather play with a box 😂
My wife and I had our wedding last June at a Wedding Hall in Guri, Namyangju, South Korea. Our total expenditures came out to around ten million won or about $8,500 at the time. Thankfully, as you know, wedding attendees in Korea bring gift money. By the end, our entire wedding was paid for by our guests!
Wow. You learned your lesson about not carrying credit card debt in college 😳 I just learned that lesson at 39. Better late than never I suppose 😂
If you don’t mind me asking, can you share your story? As a young person it’s great to hear all perspectives
My dad learn his lesson at 64. He lost his retirement savings (as well as our joint mutual fund) to some bogus business opportunity targeting retirees.
He didn't dare to tell me, worried that I'll be shocked, until my mom spills the secret. When I found out, he has 7k on his credit card debt and he show me how he's planning to pay it of with his meager pension. He said it'll take years.
I told him that's stupid, he'd pay 3x more the original amount. And I just paid off all his debt in one go, all 7k something.
I'm not mad. He's the best dad ever. He funded my college and I have 0 student loan. He paid down-payment for my first car. He's just a bit gullible. This is the least I could do. Now he enjoy his days doing simple things, the biggest headache I'm sure it's just my nagging mother hahahahaha!
@@DGA-808 Sure, happy to. I used credit cards to keep up with my friends. Eating out, clothes, home decor, other lifestyle stuff all purchased on credit cards.
Then as I made more and more money, I kept increasing my lifestyle expenses. I make a little over $140,000/year and STILL LIVE PAYCHECK TO PAYCHECK. My credit card utilization is so high that's it's lowering my credit score and I'm paying $100s in interest each month.
So finally I had enough and came up with a budget to pay off $30K in debt by the end of the year. I'm down to $22k now.
Moral of the story: BUDGET, SAVE, USE CREDIT WISELY, INVEST and really focus on financial literacy.
THANKS FOR SHARING YOUR EXPERIENCE!@@timothyevo
Thanks for all your videos. I’ve learned so much from them. I’m a MBA and there are so many things you don’t learn in school that you have to learn in real life. You learn from your mistakes but like my Dad said “is cheaper if you learn from someone else mistakes”. Keep bringing more vids. 👍
My biggest mistake to date was probably paying off my mortgage early. I knew it was a mistake, that I’d make more keeping all that equity invested in stocks, but my wife and I just wanted to be debt free. It was a liberating experience, and it did a lot for our peace of mind, but I know we would have made significantly more in the long run if we’d been patient.
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
I am a new subscriber to your channel. I just wanted to say I love your transparency and honesty regarding your own money mistakes.
Not a lot of people can provide the details of your past financial mistakes to the world.
Thank you for your humility and talking about your mistakes. I was extremely lucky that my parents and sisters made many of these mistakes and they educated me about them before I made them myself.
I bounced a 75$ check at the court house to get married. 😂 13 years and still going strong.
The more I listen, the more I like this chanel. Most TH-camrs come here and give you fomo. This guy gives his mistakes and I made the same, ie the credit card at college. I'm a first generation immigrant too so I do connect to this level. Right now I'm working on nit spending money on lunch at work and building my reserve. I'm excited to finally believe in myself and to grow!
I love watching your channel because I can relate to all of your money mistakes as I made almost all of them. I've learned on my own and am much better at it, but I still have anxiety if I have enough.
Tae - love your channel. I've shared a number of your mistakes too. Learning from mistakes = newfound wisdom. Keep sharing your voice. :)
To be vulnerable, after watching this I double-checked the mutual fund a college buddy signed me up in and saw I was paying nearly 6% in contribution fees. Immediately called Vanguard to create an account and roll it over. Thank you for the quality content, sir!
Thank you!. I've spent 5k for my wedding 20 years ago.
Very happy to see this channel growing ! Great content
Thankyou for sharing your mistakes and what you should've done with us! Often, people hide these mistakes and don't help others. You do. Much appreciated!
You know the wedding money has resulted in beautiful photos! You both look amazing and happy! But I get the point… we tried to keep it very small and super simple and still cost us around 20K
Next time I get married it will be very small as well!
Subscribed. This is great advice. Good job.
This video not only made me look back at all the dumb youthful financial decisions I made, but also made me remember how much I have changed as I grew up.
My first advisor took my $1000 and put it into 11 funds with mer just shy of 4% back then
Currently engaged. I would advise looking at local community centers. They’re nice, can usually hold 200-300 people and the total amount for the venue it’s self is around 2-4k.
Tae, new to the channel and am loving every video! A common thread I'm seeing across most of your mistakes is "living beyond your means". I wish it were not so cultural in America (or any capitalist economy/society) to always spend more and spend bigger - especially without understanding what you're really signing up for responsibility-wise.
I’ve truly learned more from you about investments and financial health in the last few months, than I have in the last decade. Definitely wish I knew all of this in my 20s, and thanks for another great video, Tae!
Thank you for sharing. I’m not the only one who’s made mistakes then. Hard not to when we’re really not taught these things.
Solid advices, great video !
Looking for other rational reminders like these, keep up the good work !
A FI from France
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
"Dont over spend on housing you can't afford." That's not usually the issue. The problem is housing is to expensive in general now. So many company's that were selling homes new construction and old are buying up and switching over to long term rental homes and apartments now and increasing rent prices astronomically. 😑
That’s absolutely a problem but Tae’s point is valid for a lot of people too. We’ve been marketed to want 3 bathrooms, media room, games room with bar etc. so end up in places bigger than we need. I was pre-approved for a way larger mortgage than I could comfortably afford, but luckily I had already decided on my limit. Location can be an overspender too. Friends were adamant on being downtown close to “the action” and wouldn’t consider housing 20 mins out towards the burbs that were a fraction of the cost for the same size.
Note to non-Asians, that wedding amount tracks. Some of us throw two ceremonies. It's not money wise but tradition peer pressure is real.
Humbling and truthful - thank you
Yeah I remember signing up for a CC at school as well.
I bought a penny stock at 1.3 cents and went to 15.5 cents. The rumor was that it was going to go to 20 cents in which case I would sell. It never came and 18 months after those highs I sold at 1.2 cents.
Any time the public gets excited about a penny stock is exactly the time to sell. I've learned that the hard way too.
The 401k might screw you if you pay the marginal tax rate when you withdraw the funds in retirement. Consider a taxable brokerage and the beneficial long term capital gains tax brackets.
Wow. This is so helpful. Thanks, Tae!
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
You and I are about the same age…and you just described my life to a T.
Parents get guilted into buying too much, and high end/designer brand stuff for their babies. You don’t need a fully outfitted nursery and a full closet before baby comes. I say buy what you need at the time. My kids never used their crib or playpen, and one was born early and tiny so the pre-purchased clothes never fit before the seasons changed -money wasted. And second hand or yard sales are amazing since kids outgrow things so quickly. I’ve often purchased used toys and clothes and was able to resell them for cost or a profit when my kiddos were done with them.
If you don't look at your past financial self and shake your head, you're not learning. It's a great thing to change habits and not make past mistakes!
My bigger mistake was to live over my posibilities at the moment, I bought a Pc with my credit card that I was able to pay month by month, not a big deal, silly me, I lost my wallet and my phone, my dad lost his job, my sister is on her last years of university, I was too far away from my job so I had to take uber some times and all of us went sick and we are 8 people on the house, I was able to get a better job so I sent my 2 week notice then the employer resigned after they told me my start date for availability when I said and I have recorded that I was Available for all shifts, I was stupid enough to not ask for a written proof or the contract...
Well, I'm trying to get a new job now and paid the minimum payments atleast of the credit cards and if the company was stupid enough to not understand a fucking easy sentence that's a Red Flag.
Thanks for the video, appreciate it.
Start your own podcast already brother
Love your channel and common sense advice. What funds/investments would you recommend for T.Rowe Price? Thank you.
Top of the morning TK
If you're a high income earner, would you recommend regular 401k, to reduce taxable income now, or Roth 401k, don't get the reduction now but be able to take money that as compounded interest over time, tax free after 59-1/2yo?
Withdrawals from traditional 401k are taxed as normal income. Think about the tax bracket you’re in now, and the tax bracket you expect to be in when you are eligible to withdraw.
Gov will likely raise income tax by the time you retire, and via Required Minimum Distributions(RMD) they force you to take out money.
Roth has no RMDs.
@@ironfur2000 Two great points you raised. Thank you!
Great video Tae. Looks like your wedding was a big event, congrats! I noticed you mainly recommend US stock for investing, what are your thoughts on VT?
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
I see your 87k and raise you 208. Now that beings said I’m in a pslf and it’ll be forgiven in 4 years and Covid has been amazing since I haven’t had to pay for nearly 3 years but those months have all counted towards forgiveness
Great info 👍 👌 👏 😀 🙌
Didn't hold a wedding, used instead 5000 USD on a 1 week holiday at a 5 star resort with my wife and a private pool connected to the room. Best 5000 USD every spent.
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
What did you do in the military?
any reasons why all the index funds mentioned are mutual fund and no ETF ?
Buy a nice videogame system like a Nintendo Switch, and spend time with your kids playing videogames, spend just enough as a one-time splurge but it will reduce your overall spending on toys that will end up at Goodwill!
I tell new moms all the time not to go overboard on buying clothes, shoes, and toys because most of the time it’s a waste of money. They grow so fast, they won’t wear half of it and spend more time in pajamas then anything else. I’d say invest in cloth diapers or spend more money on diapers and formula. If you can, breastfeed!! It saves A LOT! If you breastfeed then put some of that money towards food cost (you will drink more water and eat more at first until your body regulates). But yeah people will give you clothes and shoes so take what you can get for free.
I definitely agree about the wedding part. That’s way too much to spend on one day and most of the time people just come to eat, get free drinks then leave 😂. All that to please some people who’s just there for the food and free drinks 🤣😭
HELLO, don't forget to write me directly for more useful information ℹ️ and recommendations.
Actually disgusted the uni is putting their slogans on credit cards. A credit card with your schools logo and some swag, what teenager wouldn’t want that! Guess it helped learn the lesson earlier. But don’t they already make enough sending us into student debt for years and years? So wrong
You read all the books behind your background?
I’m 18 and about to go to college and I’ve got about 10,000 saved and I want to invest it. Would you recommend investing right now or waiting to see if the market drops lower? Also, should I ignore individual stocks and volatile etfs/funds and only look towards more stable ones like vfiax? Or would it be a better idea to have a majority invested in large indexes and set aside a smaller amount to invest in growth etfs?
Vtsax. Also, don't come out of college with debt
@@MeltingRubberZ28 probably best case scenario I’ll have around 70K debt but that’s a generous and rough estimate, basically just my full tuition minus what scholarships I have and not taking into account my projected net worth by then.
It’s about dollar cost averaging meaning is about investing consistently and not if is low or high.
@@weird-guy thanks that really helped me make a decision
Keep applying for scholarships throughout your undergrad. I never stopped applying, pocketed 40k in reimbursements and graduated debt free.
Also, common advice is to dollar cost into the market. Not what I do, but it’s what most people recommend. Personally I think the market is going to get smoked going into Q2 from 50 basis point rate hike in March and bad Q1 earnings so I’m waiting.
👍
What … you passed on living on the base?? I’m still in my parents bunker ie basement
Five
I want the brand new car tho, esp since I got 50% down payment for it as well.
As he said, there's nothing wrong with a brand new car as long as you can easily afford it.
@@Lazirus951 so it’s ok if it’s a benz? Cuz my friends telling me it’s too expensive but ya only live once
@@Karma-hy6ki Only you can answer that question. Everyone has different income, standard of living and financial goals. Expensive things can be worth it if you can easily afford them and they don't interfere with your other financial goals.
@@Lazirus951 yea no ur right, thanks. It is is bit excessive to spend 75k on a car but i do want one
6:21 😏😏😏
Overspending on kids, or having kids altogether? 😂
Second
Most financial advisors are the worst. The Obama administration passed the rule that they had to be fiduciaries, but guess who revoked that?
Fiduciaries are no better