Are We Investing Too Much?! (Investing 50-60% of Our Income!)
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- เผยแพร่เมื่อ 21 ก.ย. 2024
- Are We Investing Too Much?! (Investing 50-60% of Our Income!)
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As long as you can pay your bills and have some fun. Then it doesn't matter.
But I hate when people always say to invest, just to invest. And then never use it.
like saving airline miles and never using them. i forget what the statistic is on unused miles
@@Subterfugeo Blame restrictive zoning laws and NIMBYism for real estate prices. And it sounds like you need to touch some grass
As an old person, I think it's great they are investing 50%+ of their income. My only recommendation would be to not put all of it in retirement accts. I'd probably do something like 25% of income in retirement, and the rest into a brokerage account. They might want to access some of that money when they buy a house, or at this rate, when they retire early.
This is wise. Max IRA get 401k match etc and brokerage a ton in case u need it for life, goals, and experience
lol super jealous. I was in similar situation - was saving ~50% of combined income. Once a kid arrived, that shot down to ~25% ish, and my FIRE plan is gone (well... I was planning to FIRE at 45 but got pushed out to 55~60...). So, do it until you feel like you don't want to/cannot, is what I'd tell you
LOL....yup, don't think you are rich until you have a handle on your future kids....if you think formula, diapers, and daycare is expensive.....wait til they are in high school driving then college. Don't tell me you are debt free while you are in a rental and childless....
@@jimv77 lol sometimes if your child goes to in-state college, daycare is as expensive as those... crazy. If I knew how expensive kids were, I would've delayed having kids and save a bit more at 50%
@@kay203 But we both realize that delaying having kids will effect your FIRE plans....no? Having twins is suicidal, but pretty efficient in terms of money and time..... I was paying $1,200 a month for a NONPROFIT daycare for a 5 and 3 year old back in 2008....can't imagine how much that would be today.
My wife and I just had our second child. First one is going on two years old. When we put the new little man in daycare, it will be roughly $2,700 per month for both of them. We live in the DFW area.
@@jimv77 daycare in my town (suburban NJ) is 1800 per kid. In state college tuition is around 15K-18K a year. Daycare is more expensive... crazy
I’m 26 and I currently invest over 60% of my after-tax income. I can already see it paying off. As long as you’re not overly sacrificing on your material wants, then consider saving the most that you can. It’s worth it for me. You can see how much it pays off even in your 20s.
What's the Goal bro? And can you tell what kind of after tax income we are talking about?
This 26 year old should keep saving for as long as she/he wants to or can. Then coast fire that account into millions over the next 4 decades
I love what you said near the end about not giving up things you can’t come back to in order to save. I’ve been in the hardcore savings mindset for a few months, now I’m trying to learn how to find a balance, where I’m still saving a lot but also not missing out on life to do it
It's definitely a challenge. The way I see it, if my aggressive savings come in the way of jeopardizing my relationships that is where I draw the line. What good is money and wealth if you have no one to share it with?
Loved the answer
I save 40% of my post tax income. Use 40% for expense and the 20% i use for travel and experiences. Sometimes people focus to much saving causing people to give up to much TIME. That cant be given back to you. Learn to save and enjoy life within your means.
Refreshing message to hear! As a 25 year old, I spent the last 3 months living with a family of four to pay dirt cheap rent. It wasn't glamorous but man has it been fun and I saved a lot of money. This year, I'll be saving 37.5% of my gross take home pay. Why? Each dollar is worth $44 at this point! If all goes to plan, I'm on track for an 8-figure retirement!
I'm 54, will likely need 3-6 years long term care in my 80s. 240k a year is my best guesstimate, so I will need around 1.5 million to avoid being a burden to anyone, I only have around a million now, overall I will likely need 2 million to get to my 80's. I make about 25k a year so not saving much.
Live a little . Everything is balance
I would max out my Roth 401k , Roth IRA and I would pay off my home. Everything else would be play money!
Don’t forget HSA if available
what about regular 401k? You prefer roth 401k?
@@bpenguin , yes right now I prefer the Roth 401k! Because I am in the 19% tax rate. Not only are withdrawals tax-free in retirement , it won't impact the taxation of your Social Security benefit and Medicare premiums.This is an important aspect of a Roth account that most people are not aware of.
@@TravelingTheWorld1993 I’m curious to know more. I’m currently maxing a Roth IRA and regular 401k but I have the option of putting some into a Roth 401k but I don’t. Wonder if it’s right for me?
Maybe add in the HSA if you have one, but good plan!
20 rn should be at 100k in two years savings 50%. Only reason I’m doing it so aggressively is to not have as much stress around it as I age. Still go out to concerts and events but just don’t buy almost anything material
This is exactly what I do as well! Keep at it brother!
Bo handing the mantle over to Brian 😆😂
Been “parent hacking” since I got out of college almost 5 years ago. Can be a little awkward bringing a lady home for the first time, but it’s absolutely worth it considering I’ve been able to invest 80+% of my income. 27 years old and my net worth is sitting at $820k today.
Don’t worry, I definitely won’t be living with Mom and Dad forever. The plan was always to hit $1M within 5-7 years then get my own place. I presented my vision to them when I first asked to move back in, and they were more than happy to help me out. As long as the market doesn’t decide to go down another 25%, I should be able to get there in the next year or so.
so a net income of 250,000 per year ?
What's your income to hit $820k after 5 years?
@@mikesantos011 About $130k after tax, investments have also done pretty well (aside from the last 12 months). I kept buying and buying and buying some more stocks during this downturn so I’m looking forward to riding the rocket ship as the market heads back up. I want to get more into real estate so I can boost my monthly cashflow coming in, but these interest rates are hideous.
Do it in two incomes so you can more easily have kids and drop to one income later. Anyone on two incomes should be banking one of them, good job.
Yes, even if his wife says she'll always want to work. They don't know until they hold that little baby in their arms that she will want to go back to work full time.
When you say bank one of them, do you mean after taxes?
@@TheFirstRealChewy typically yes, so you don't go beyond the lifestyle that you would have with kids.
Keep the pedal to the medal, that’s my advice!
2:35 “do they have a pillow menu” lol
This is me! 😂
Pillow menu!!! On real vacations I'm still looking at hotels you might get shot in. On short vacations by myself I might be sleeping in the back seat.
Great advice!
When you say 50% of income does that mean pre or post tax? I look at everything from a post tax standpoint unless it’s pre tax investments.
As pharmacists, they probably make somewhere in the neighborhood of $250-350k a year combined...meaning them dumping 50-60% into investing isn't even an issue.
How do we ask them questions?
Speak out loud to the screen
We’re at 64 percent but we have no mortgage and in our 50s
Good work. What line of work are you in in your 50s?
There are a lot more people out there wishing that they’d invested more and sooner than those wishing they’d invested less and later! Err on the side of caution, folks. Keep the pedal to the metal!
I doubt there’s such a thing but I guess it can happen
My rule is 1/3rd each for taxes, saving and spending
So 50% post tax
I am 41 with house paid off, and cars paid paid off, making 6 figures and really close to getting promoted to a leader position, making even more money. I'm stuck on investing mode. I am not married and have no kids. How do I relax and start spending my money? My focus all my life has been my career. I'm not complaining because I love my job. But I am getting older. 🤷♂️
good job. It's hard to say when you can relax. Know your expenses, it's the most important thing in retirement, and aim to save enough to use the 4% withdrawal rule in retirement. make sure you have your beneficiaries on all your account set up, POA, and living will too.
Keep it up.
Those who invest early will become rich.
Bottom line: are you also enjoying life?
If not cut back a bit on your savings you will stay ahead.
Trust me.
live and drive like no other, so that you give, drive, and live like no other!
Invest 50-60% of pre-tax income? That's difficult.
The top 1% invest 60% or more of their income. The goal should be to build valuable skills so you can increase your income while simultaneously reducing expenses a reasonable amount, making 40% of your income more than enough to live happily and comfortably!
I’m at an 80% savings rate with three kiddos.
@@brandonhenneke4226 that’s pretty sick. Nice work. I hope you make $500K a year!
I wish you guys were more succinct
TikTok advice is that way
: )
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy have been earning $ 60,000 returns from my $7,000 investment every 10days..
Wow! How's that possible please I'll appreciate your assistance on how to go about it.
@@dan_fuenntes we always here to make it easy for you.
@@partners80comfortableincome You save me my life out of debt I do think I can thank you enough,I will keep telling my friends and family and my Facebook page and all about your platform, god bless you so much
What is it you're missing out on if you're investing most of your savings?
Travel, experiences. I found a balance between both.
@@nielsvandenkieboom5034 I travel as well but what is it you're missing out on?
@@robocop581 Well nothing now, because I balanced it. I could save more, but then I wouldn’t be able to take trips to Greece, Italy and Norway this year. That’s also worth a % of savings rate as I’m already at about 25% for a few years now.
@@nielsvandenkieboom5034 My friends have bought nice cars for the "experiences". I saved and invested my money instead. Today my investments can buy me a new sportscar every year in cash but I still haven't bought because I realized I don't really want one. I only wanted one back then because my friends were buying it so I felt like I was missing out. Same with trips. My friends went to Europe and I traveled locally. Today they're up to their necks in debt and I can take a trip to Europe anytime. But I don't because I'm happy mostly traveling locally or near my country. This is why I posed the question "what is it you're missing out on?" because a lot of that is just perception.
@@robocop581 Whatever is your hobby man. I’ve lived in the Caribbean, Asia and Eastern-Europe. Sometimes for six months on end for less than €5k at a time. Those experiences are worth tenfold to me now. I also combined it with working so I made most of it back while I was there anyway. I don’t have to be a hardcore saver or investor as I’m in the Netherlands and I could basically sit on my ass all my life and still be taken care of when I would reach retirement age 🤷♂️