Exactly! As I just posted above, only a small fraction of Americans have a net worth of 1M. Most Americans are living paycheck to paycheck and have a negative net worth. All reputable sources reflect less than five percent of Americans have a net worth of 1M and most all of that is their home value that vary depending on the market. Yes,if you average in the 60 plus billionaires in the U.S. maybe that's true, though they fall into a fraction the 0.1 percent class. Again, that's like 100th of a tenth of a percent.
Worked 45+ years interrupted only for a stint in the Army. Started with a series of minimum wage, first was 90 cents/hour. Ended in mid level management. Early, literally juggled bills by due date but we lived within our means. Always saved (invested) never paid credit card interest, got our son through college without debt, paid off the mortgage before we retired, now new car & truck w/ out a payment, travel, volunteering, just enjoying retirement. Income is still modest, but even so, social security is only for extras and assisting with grandchildren's college. Not rich by any means, but according to your definition, wealthy. Thank you, God Bless America 🇺🇸
The difference is NOT tied to a dollar amount. I may not be rich, aka have lots of money, but I am wealthy in so many ways. To me, wealthy is having good health, family that loves you, being comfortable in your own space and being able to be alone and at peace.
Excellent video! My father's motto "live within your means ." He grew up poor during the great depression. To help support his family, he quit junior year of high school My father was a blue collar worker with many jobs and worked long hours. Growing up we lived modestly yet comfortably. On his menial salary, my father managed to save and invest in the stock market, pay for two educations, masters degree for me and doctorate.for my brother, purchase our home and acquire an investment piece of property following his beliefs. It saddens me to say my father passed 12/26/21 yet say with admiration, he passed a wealthy man.
Who you marry “is the most important financial decision of your life” I went into my marriage with a house and money in the bank, left 9 years later with $17,000 in credit card debt at the age of 43. I started saving aggressively for retirement at 50 and managed to save 1.25 million over the next 17 years. Staying single post divorce contributed to pulling off that nest egg. I certainly don’t feel rich but at an intellectual level know I will be ok. I retired at the end of the year so just getting used to not thinking about work anymore!!! Love it.
My story is similar. I related. I didn’t get married to her 20 years ago because of her gambling addiction. Best decision I ever made to leave that anchor. I wasn’t happy then & stay a bachelor for a reason.
@@yeffblanco good job. I could never marry someone with poor financial impulse control. That's a death sentence.. I don't want to have to baby sit my partner, otherwise I'd just keep a separate account.
My entire career was working in a job that I didn’t really care for, but made a great salary and bonuses. It allowed us to have my wife stay at home to raise our child. Wouldn’t trade it for anything. I retired at 55 and now do whatever I want.
Not a bad approach. I don’t think that your job has to satisfy all your needs. Just your financial needs and it’s a bonus if you don’t hate it or even like it. I guess I subscribe to the work to live, don’t live to work philosophy. Though, I do think it’s neat that some people are passionate about their jobs.
@@floydestelle6242 I am similar to Chris. I picked a career that I wasn't suited for. But apparently, I was good enough at it because I retired at 54. We cannot spend all of our money-you try to spend a million dollars a year on restaurants and hotels-believe me, you will not come close before you are sick and tired of traveling. But I still wonder how much more I might have enjoyed life and maybe been more successful if I had been doing something I loved. Speaking of spending, Dave Ramsey tells a story about how, after he got rich enough that $5,000 was pocket change, he bought his wife a $5,000 purse. First, if my wife wanted a $5,000 purse, she could drive over to the Gucci store as well as me and hand them the same credit card as me. Second, my wife does not want to carry around a billboard that shouts, "Hurt me and steal my purse." We have no desire whatsoever for so-called "luxury goods." I drive a 21-year-old Toyota 4Runner, and my wife drives an eight-year-old Mazda 3. I go to Michelin 3*s wearing an Under Armour shirt and black hiking pants.
I switched to part time work at age 50. I work three days a week from home. I have full benefits, 8 weeks of vacation, 10 holidays and a six figure salary. I plan to fully retire at age 60 if all goes well.
$1 million feels like $500k now. Still nice just different. I feel like the traditional concept of millionaire from 20-40 years ago is now like being worth $5 million thanks to inflation.
@Wabu1 $1M twenty years ago would be like $1.6M today. $1M forty years ago would be like $3 million today. Hardly as stark of a depreciation as people make it out to be. Regardless, it's quite relative. The chances that a millionaire retiree, 40 years ago, purchased a car with all 4 doors having powered windows and a sunroof, a TV bigger 27", fresh mangos year-round, etc. etc. is very unlikely. So just how poor are today's millionaires?
I plan to retire with $5 million at age 60 with a pension. Many of my friends retired at age 50 with $5 million to $10 million and rental properties. I am far behind them in savings.
@@mocheen4837 Quit trying to "keep up with the Jone's". I had a discussion in 2009 with a co-worker about when each of us might retire. At that time I targeted $1 million in investible income. He said he felt he NEEDED a minimum of $3 million. In the end, his number INCLUDED the value of his home. Pretty much anybody can retire with $1 million these days IMHO
I thought the feeling of reaching that million dollar wealth would be exciting. When I reached that goal, it was more of a satisfying feeling of accomplishing that goal.
The best thing I have seen on this subject and it is not mine, is you are comfortable when you do not have to worry about the price of groceries, you are rich when you do not have to worry about the price of a car, and you are wealthy when you do not have to worry about the price of a house.
My 62 year old nextdoor neighbor who brags about everything he has is rich. Me, retired at 54, is wealthy. Thanks for the video and clarifying the difference.
Thanks for the pep talk Erin! I'm glad I was at least rich/wealthy enough to retire and watch TH-cam videos on retirement finance and health care topics. The education has been very valuable resulting in lots of unwasted money.
Excellent video! I have two kids who're very young adults, and I wish they covered this in high school and again in college. Too many kids are influenced by "influencers" who may or may not be wealthy, and they aren't getting this understanding of what it means to be a high earner, what it means to be 'wealthy,' and how to live below their means.
Very true - they believe the college degree means instant six-figure salary. I had this conversation with my kids and nephews. I've seen one nephew think nothing of going into student loan debt by 100k and think he would get a high salary from a run-of the-mill marketing degree. While some can achieve that - they have to have a lot of initiative, creativity, and a portfolio. Unless, of course, they are well-connected and that changes the equation....
Influencers are all about the showy lifestyle to earn their income shelling for companies that pay them, and attracting the eyeballs of the naive that don't understand that wealth is really what they're after, and can never be attained if they're too busy showing off they're "rich". We're wealthy after decades of work, saving, and investing, AND now could show off too if we wanted, but funny thing is, when you get to wealthy, you don't care to show off, all you want to do is enjoy being wealthy (the freedom with your time and the peace of mind that comes with it). Drive same old paid off cars, live in same paid off home, eat in lots (it's better food), but take nice vacations (not more often, just nicer), and splurge for the odd nice thing when we want or need it, but that's it, still pretty modest lifestyle, just very comfortable.
I agree. We still live on a budget and it’s comforting, we have what we need. Our children have followed our lead. The wants fade away as you age. Health and time with our family and friends take priority.
I actually thought about this in my early 20s and it took me ~15 years to get rich and ~25 to get wealthy. Simply, rich to me means income high enough so I can live comfortably and not having to make sacrifices. Wealthy is high enough net worth so I can sustain that lifestyle as long as I live. I further break that down to active vs passive income and liquid vs illiquid net worth.
Mean average is pushed up by the very richest. I'm 57 (58 in March) and my net worth is $1.2M. My wife and me combined were are a little short of $2M. I consider myself middle class, certainly not rich - nowhere near, not even remotely.
Just look at the TH-cam channel you are watching, you are 10X the median net worth… you are very rich, comparably… and let’s face it, all of this discussion is about… ‘comparably’.
@@jltsoyowdycjltsoyowdyc1076 depends on where you live - we have about 5.7 net worth and about 3.7 liquid - we are comfortable but wealthy in my area starts at 15m+ - crazy but it is what it is.
I was doing some research for my cousins son and came upon you. Love watching your short videos that are socked full of great info!! You remind me of my “messiah of money” Clark Howard. Keep up the good work Erin!!👍
While I totally understand the difference between median and mean, I’m still SHOCKED that even the avg net worth is over a million bucks. It’s obvious the gap between median and mean has never been more vast
This has been said over and over but when the question arises: Who is rich? The answer is always; The one who is happy with their lot. That being said, if you ask someone who has 5 million dollars and poor health, they would surely give it all back to have the health. Save and invest and hopefully have good health most importantly. One million dollars in Canada will produce 40,000 a year in retirement income on average. That's why i'm still working. Thanks Erin for your beautifully thought out videos, they're great.
I love that you were laying down the law to the sky and climate!!!🤣 I thought only I say things like that! I always love your bloopers! Thanks for being real and vulnerable. 🥰
Your videos are always so comcise and relevant. Even though I feel like I've master many of the points in this, i still benefit from hearing them again. And I always pick up an additional point or two.
Hi Erin. Great out takes, you were very animated it was funny. Todays vid was excellent and I hope your viewers watch it a few times to sieze the full extent of the information and actually let it sink in and have an impact. I'm 75, retired at 62 and was always the sole wage earner. Like you, I was always more risk averse and focused on building wealth, not riches. I was very blessed with a good career and earnings and got started investing in my twenties. We have a very comfortable retirement, with multiple income streams and able to do pretty much anything. The best part is I am able to help support family members, and do generous gifting when needed and appropriate. Kudos to you for your accomplishments and I appreciate all the effort you put into this channel; I am certain it is having an impact. Have a blessed week and I'll see you on the next one. Larry, Central Valley, Ca.
Lately, I’m feeling poor and wealthy. We have less to spend and it goes less far, but our net worth is up there and growing. I’m ready to retire snd enjoying some of our savings. Hubby is still worried it will all disappear.
It doesn’t seem like a $1M net worth is wealthy in a high cost of living area when there is debt and you work for someone to pay for living (no financial freedom). Regardless of assets. We do not consider ourselves wealthy at all. My husband relies on working (for someone else) and having a rental, index funds, etc. does not allow financial freedom of just spending money left and right, etc.
Multiple income streams are good, but some have values that place money in a diffrent place than at the top. Agree about spouse and spending; house, auto etc.
On the subject of two streams of income , another way to look at that is if you only have one stream of income be sure to pay yourself first (meaning Investments) and then pay your bills. This will force you to live below your means. This concept was key in building my wealth.
Well it depends on the year. I'm only in my early 40s, but my retirement savings nearly earned more than my income in 2024. But that is because I saw over a 20% gain in those savings. In 2022 my retirement savings shrunk.
@@kyleolson9636 understandable considering a typical retirement portfolio in your 40’s would be balanced aggressively as compared to a retired person in their 60’s and beyond. Total comfort is achieved when you can be invested conservatively while still covering your needs with net investment returns. Sounds like you’re in a great place at a young age.
I agree with your mom. It's exactly how we built our wealth. We saved one income and lived off the other because I was always scared of a scenario where one of us might lose our job at any time. We ended up retiring early.
I love that! Congrats on the early retirement! I definitely share that same fear, you never know if someone has a situation where they become unable to work, or they lose their job. I love building security into a financial plan.
Great video Erin. There is some benefit to extending your spend for your first house if you can and you have good earnings potential. If you pay more for a great location and schools, it is worth a few years of pain to accrue the growth in the house price. Over time and with a bit of luck, your salary will increase with promotions and transfers and the mortgage will become more manageable and affordable. Later in life, I would definitely buy houses well within your means. This worked out for me and some of my friends - doing your homework on the house and location is the key to making this work.
My personal definition for each of these terms is reversed. "Wealthy" is having a nice portfolio of assets which, is able to generate income plus the current amount of equity in your home. I use the term "Rich" for persons that have achieved a very large sum of money (they can lose millions on several investments and, it makes no change in their lifestyle). For myself, this amount would be about $10 million where, I could lose half and still be fine. Now in my 60's, my current Net Worth is $1.1 million and my wife's Net Worth is $600,000 (for a total household Net Worth of $1.7 million). Erin, you talked about having multiple income sources. I am one who, is a strong believer in having multiple retirement income sources. In 2023, I retired and currently have the following retirement income sources: a private sector pension, a public sector pension, IRA, 401(k), 457plan, social security, and personal savings. (smile ....smile).
I have found that I have bothered less and less about the words I use to discribe my financial situation the larger and larger my net worth grows. Now if someone where to ask how my finances are doing, the honest answer would simply be, "I'm on track with my financial plan."
Net Worth includes what your house is worth minus the obligations you have from a mortgage. But in general, I agree for not including it at all. You need a place to live, so it's not something you can do without. Worse, a house valuation is always approximate, so if you sell your house you may get a lot less than you anticipate.
I guess it depends on the decisions being made based on ‘net worth’ For some net worth is equated to retirement savings. The house shouldn’t be part of retirement planning. As it was said you live in your house, it’s not something you should consider selling to finance your retirement. If you really want to include the house in net worth then at least use only the equity not its market value. But if you are doing retirement planning ignore the market value of the house altogether.
I have analyzed this question a great deal. I liked the definition that described it this way: Rich people manage their spending, and wealthy people manage their money. As far as I am concerned, income is unrelated to rich or wealth. Capital is all that matters, and our experience is that about 25 million is a breakpoint between "rich" and "wealthy." As a general rule, we do not think about spending. But will admit that we are entry-level private jet charterers. And we do think about that spending. We need to fly from Lisbon to Atlanta. $3,900 for the two of us in business class, or $90,000 to fly private. My wife told me the $3,900 is non-refundable, so we aren't spending the 90.
I am wealthy. I live in a tiny house i built out of cash flow located on a lot purchased for cash and I am off grid. I have no mortgage payments and only minimal monthly expenses. I paid cash for an inexpensive used car that i have driven for nearly ten years . This lets me travel both domestically and internationally several times per year, go to restaurants as often as i wish, indulge in a few luxuries, and live a full and enjoyable life all on my social security. An additional benefit of a tiny house is it disincentivizes buying stuff. Where would i put itU?
Once had Fortune 50 clients. Some had such a lifestyle, they couldn't slow down or retire! Social circle requirements at this level are tedious. Their homes and aircraft were also massive expenes.
By that measure we're wealthy. I retired a few months ago, we have no debt, and we've got investments that can fund all our financial obligations with enough left over for a nice set of our wants. There are a lot of people with that level of wealth that you'd never notice. They drive Toyotas and Subarus, have mundane middle class houses, and don't go on expensive trips every other month. But they have enough money to decide what they want to do in life.
Is your mother Suze Orman or maybe your uncle is Dave Ramsey ? :) Actually, I believe your video's example's are more true to real life situations, that are easier to understand then both of them. I believe my wife and I are very average in net worth living in the San Francisco Bay area. Even though we are 3 times over the net worth of the average American as you posted in your title. We retired 2 1/2 years ago and have an income(2 pensions and SS )of about 3/4's of our working income without touching our investments. Our cost of living went way down in retirement, even though we travel several times a year and I budgeted for them before retirement. Boopers: Weather forecasters are taught in weather school if they aren't sure. " Today there is a 50% chance of...." so they are never wrong. Thanks for video's!
@@angiepatterson6338 Angie you are correct, however I was just making a joke. I admire what Erin is doing and my comparison was saying she should be making what Orman and Ramsey are or more.Unfortunately, fame and fortune often make people greedy and lose sight of their early goals of helping everyday people.
I personally define being rich as having high absolute net worth (a concrete value of total assets minus liabilities). Being wealthy is having greater access to both tangible (better products & services) and/or intangible benefits (greater personal freedom, less stress, respect, influence etc) from being rich.
We are fortunate enough to have the money to purchase a new vehicle outright. The dealership was still trying to get us to finance the vehicle after we told them we were paying cash. I think they were disappointed that we were going to pay cash. Erin is always on point with her information. Smart financial decisions is key. Great job Erin thank you.
You will often get a better deal if you use their financing, and depending on the state you live in. You can turn right around within 90 days and pay it off.
@@glynnreid1217 Happens all the time. The worst thing to tell a dealer is "I'm paying cash". And I know you won't believe me, but do a little sleuthing on the internet. When they ask you if you're financing the answer is "I'm considering it, haven't made up my mind yet. Let's talk Out-the-Door price including tax and all fees" After you get the price, ask him if he can do better if the dealership finances it through their bank. The person who gives a price first loses in any negotiation.
@@kerwingray9386 yes. We are very busy with our two kids and we get our monies worth out of the vehicle if there is such a thing. It allowed us to give our old car to a family member so they would not have to incur a vehicle loan at least in the immediate future.
Labels are just that : labels, it may help someone feel good about their financial situation compared to others, but in my opinion is none of that matters as we all face different opportunities and challenges. We can only compare to ourselves the day before: am I today better off than yesterday? as a measure to monitor our progress which should include everything else and finances.
Agree with your advice on house and cars. I would add if you feel you fave to finance a car, you don’t. Purchase a less expense vehicle and after you paid it off don’t go buy a newer vehicle. Start taking what you were paying on the car payment and save it each month. Then you can you can pay for your next vehicle.
In economics, you never use a mean average. You use a median average because those at the top screw the the numbers far above most people’s experience because the tops numbers are so huge
Start organizing these videos into multiple online courses. They're really free financial education for the masses. It's a public service you're providing, good on you, plus you're building your own nest egg in the meantime! How rewarding is that?! Thanks on behalf of those of us who've made it and want others to as well. I wish I knew half of what you teach here, long ago. It would have shortened our journey considerably, PLUS gave us assurance and more peace of mind along the way. Educate yourselves folks and ACT on that education. You'll feel richer, be richer, and earn a wealth borne of knowledge and confidence.
I am so impressed with your work ethic! I strongly agree with everything you recommend, and in fact have lived my life this way, and was able to achieve financial independence by the age of 40, before it was a thing. I never thought of myself as rich or wealthy, but 26 years later our net worth is double what it was at 40. Oh, did I mention ... I retired at 40. And we never had one of those really high paying jobs.🙂
Why is that? I see a major part of the problem being the safety net people have for not working. We incentivize people to not try to create wealth. We used to have a large middle class, but have decimated them. You can’t get ahead if you are just having the government cover your magic needs.
No, it’s not. That’s the statistical result of wealth accumulation math. The median and mean are only approximately equal for normally distributed population statistics. Population wealth statistics are never normally distributed because wealth is cumulative. Wealth also isn’t simply linearly cumulative with age, it’s exponentially cumulative with age and the growth rate is highest for those that invest intelligently. Median statistics for cumulative dependent variables always and necessarily trail their mean statistics. Older people always have more cumulative wealth than people just starting out because they have had time to accumulate their exponentially accumulated wealth. Comparing means and medians for effects that are agnostic of accumulation time are arguments for propagandists.
It's interesting how many folks are unaware of the differences between median and average (let alone talking about the mode, which would most likely be $0 in this example). So many online and print articles conflate the two concepts without understanding the very real and important distinctions. This becomes vitally important when making regulatory and policy decisions by the government. Funny, I always viewed wealthy as the lower amount and rich as the higher number. Wealthy can afford to do what they want and buy what they want within certain limits. Rich can do it and not even think about the pricetag. The old comicbook "Richie Rich" kind of springs to mind.
I never heard the term "rich" used this way, but I like it!! I always heard rich and wealthy used the same way. However, I somewhat disagree with your definition of "wealthy". I have an additional term, "comfortable". I look at comfortable the way you described "wealthy". You can live easily off your income stream/investments indefinitely, but you still have to, to some extent, keep to a certain standard of living. An unexpected chance-of-a-lifetime trip comes up that will cost $10K. If you are comfortable, you can probably swing that (assuming it is TRULY a rare occurrence) without significant financial angst, but if it were $100K you probably would have to pass. To me, "wealthy" is where the $100K is noticed, but not a big deal.
Net worth of one million means nothing with today’s real estate evaluations. Net monthly cash flow sitting in your favorite place with whom you choose is the secret to being wealthy.
I think being considered rich or wealthy is a matter of perspective. A low income person may look at someone with a high 5 or 6 figure salary as rich (or wealthy). As a modestly high earner, I don’t ponder if I’m rich or wealthy but instead recognize I have the means to be considered both.
My wife will retire with a pension. A type of wealth many Americans used to have. Guaranteed income. The only way we know to guess at a "value" of her pension is to take the yearly pension amount and divide by 4%. My retirement income will come from 401K/IRA. We are figuring SS at 75-80% of current SSA estimates due to funding shortfalls.
Erin, Great video. I would write a lot more, but I am late to the party, and not sure anyone will read. A question for you. WHen you make these video, do you separate them into chapters when filming too? Then edit and put together? Oh BTW, you do still have 3 income streams. Your career, your husband's , and your YT income. (Ever think of getting sponsosred, the amout of money going around blows my mind.) Oh as you know for me, weatlthy and rich. And one thing I would say, if you will focus on wealth, the rich comes naturally. THen your propblem is learning to spend that income.
Wow. So much great advice. I am retired and free of these concerns. I lived all of these recommendations and can say it works. I can add one additional recommendation. Invest conservatively. If you earn enough to hit your goals without risky investments, there is very little chance you will fail. Second. Your income is arbitrary. If you believe you are worth more you will find an income source that supports it. Previously owned cars that have a good reliability history will eliminate one of the biggest drains on your budget. I bought 2 yr old luxury cars that were owned by corporate fleets. They are really well maintained and well depreciated by the time you own them. You get a comfortable ride. Only you know that they are cheaper than all those new Toyotas running around. And always pay cash. In fact the only debt to have is to leverage an appreciating asset like a home in a market that will go up.
I was taxiing for takeoff on a budget airline, and the little boy next to me looked out the window at the private jets parked nearby. “Look Mommy! That’s what millionaires fly!” I said, “No buddy. THIS is what millionaires fly.”
If Bill Gates walks into a bar, then the average bar patron has a net worth of $1 Billion.
Go to a bigger bar.
@@AaBbCcDdEeF what?
Facts.
Exactly! As I just posted above, only a small fraction of Americans have a net worth of 1M. Most Americans are living paycheck to paycheck and have a negative net worth. All reputable sources reflect less than five percent of Americans have a net worth of 1M and most all of that is their home value that vary depending on the market. Yes,if you average in the 60 plus billionaires in the U.S. maybe that's true, though they fall into a fraction the 0.1 percent class. Again, that's like 100th of a tenth of a percent.
Exactly.
Being rich is having money
Being wealthy is having time and money.
I'd add health to your list. Wealthy is having time, money, and health.
Meh. Reddit wisdom
Time is money, literally, money frees your time
One of my favorite quotes: “Wealth consists not in having great possessions, but in having few wants.” -Epictetus
Great saying
I don't have digital
I don't have diddly-squat
It's not having what you want
It's wanting what you've got
Soak Up The Sun by Sheryl Crow
So the dead are the wealthiest. We’re all gonna be wealthy eventually, you guys! It’s inevitable!
What about bills? Like, medical? These are not wants, but medical is really expensive as you get older...
@@gorgthesalty The quote pertains to things within our control.
Worked 45+ years interrupted only for a stint in the Army.
Started with a series of minimum wage, first was 90 cents/hour. Ended in mid level management.
Early, literally juggled bills by due date but we lived within our means. Always saved (invested) never paid credit card interest, got our son through college without debt, paid off the mortgage before we retired, now new car & truck w/ out a payment, travel, volunteering, just enjoying retirement. Income is still modest, but even so, social security is only for extras and assisting with grandchildren's college.
Not rich by any means, but according to your definition, wealthy.
Thank you,
God Bless America 🇺🇸
Similar here, wealthy but not rich
🤙
Well Done. A stream of good, steady decision brought you to a good spot.
The first investing book I read had this advice - You get a 100% return on money you don't spend.
The secret to the millionaire next door isn’t that they make a ton; it’s that they don’t spend it all on stupid things.
If you don't invest the money wisely, debasement will greatly devalue you return.
I think Chris Rock had a bit where he says something like, "Shaquille O'Neill is rich. Whoever signs his checks is wealthy."
You stole my quote.
It depends on where you are. Being rich is Seattle is not the same as being rich in Bubblehead Iowa.
Shaq is wealthy too. He is a savvy investor.
I ain't talkin about Shaquille O'Neal, I'm talking bout the man who PAYS Shaquille O'Neal
For those of us who are approaching retirement, don’t forget your health is your wealth regardless you are rich or wealthy.
True... Your health is absolutely vital but, the good news is that health and wealth are not mutually exclusive. Go for both.
The difference is NOT tied to a dollar amount. I may not be rich, aka have lots of money, but I am wealthy in so many ways. To me, wealthy is having good health, family that loves you, being comfortable in your own space and being able to be alone and at peace.
Wealth is when your money works for you. Rich is still working for your money. I am rich now but will retire wealthy.
was a quote in a movie like 25 years ago cant remember the name.
Agree. Retired now and consider myself wealthy because I don't have to work
Excellent video! My father's motto "live within your means ." He grew up poor during the great depression. To help support his family, he quit junior year of high school My father was a blue collar worker with many jobs and worked long hours. Growing up we lived modestly yet comfortably. On his menial salary, my father managed to save and invest in the stock market, pay for two educations, masters degree for me and doctorate.for my brother, purchase our home and acquire an investment piece of property following his beliefs. It saddens me to say my father passed 12/26/21 yet say with admiration, he passed a wealthy man.
And he earned every penny. No free lunch. He planned his work and worked his plan.
@@glynnreid1217 He certainly did!
Never considered myself rich or wealthy but according to your explanation, I am wealthy.
Who you marry “is the most important financial decision of your life” I went into my marriage with a house and money in the bank, left 9 years later with $17,000 in credit card debt at the age of 43. I started saving aggressively for retirement at 50 and managed to save 1.25 million over the next 17 years. Staying single post divorce contributed to pulling off that nest egg. I certainly don’t feel rich but at an intellectual level know I will be ok. I retired at the end of the year so just getting used to not thinking about work anymore!!! Love it.
My story is similar. I related. I didn’t get married to her 20 years ago because of her gambling addiction.
Best decision I ever made to leave that anchor. I wasn’t happy then & stay a bachelor for a reason.
@@yeffblanco good job. I could never marry someone with poor financial impulse control. That's a death sentence.. I don't want to have to baby sit my partner, otherwise I'd just keep a separate account.
I am just the opposite. My wife is not a spender and so am I. We never worry about money now that we are in our old age.
My entire career was working in a job that I didn’t really care for, but made a great salary and bonuses. It allowed us to have my wife stay at home to raise our child.
Wouldn’t trade it for anything. I retired at 55 and now do whatever I want.
Not too bad a job if you could retire at 55, and living another 40 years
Not a bad approach. I don’t think that your job has to satisfy all your needs. Just your financial needs and it’s a bonus if you don’t hate it or even like it. I guess I subscribe to the work to live, don’t live to work philosophy. Though, I do think it’s neat that some people are passionate about their jobs.
@@floydestelle6242 I am similar to Chris. I picked a career that I wasn't suited for. But apparently, I was good enough at it because I retired at 54. We cannot spend all of our money-you try to spend a million dollars a year on restaurants and hotels-believe me, you will not come close before you are sick and tired of traveling.
But I still wonder how much more I might have enjoyed life and maybe been more successful if I had been doing something I loved.
Speaking of spending, Dave Ramsey tells a story about how, after he got rich enough that $5,000 was pocket change, he bought his wife a $5,000 purse. First, if my wife wanted a $5,000 purse, she could drive over to the Gucci store as well as me and hand them the same credit card as me. Second, my wife does not want to carry around a billboard that shouts, "Hurt me and steal my purse."
We have no desire whatsoever for so-called "luxury goods." I drive a 21-year-old Toyota 4Runner, and my wife drives an eight-year-old Mazda 3. I go to Michelin 3*s wearing an Under Armour shirt and black hiking pants.
similar , retired from a high paying job that was stressful at 55. worked at it for 25 yrs. now 3.5 yrs retired.
I switched to part time work at age 50. I work three days a week from home. I have full benefits, 8 weeks of vacation, 10 holidays and a six figure salary. I plan to fully retire at age 60 if all goes well.
INCOME (rich)is what you bring home, WEALTH is what you get to keep!
From France, I really like your videos. They are very clear, optimistic (but realistic too). Really motivating. Thanks!
@@Neran12100 and tres hot
$1 million feels like $500k now. Still nice just different. I feel like the traditional concept of millionaire from 20-40 years ago is now like being worth $5 million thanks to inflation.
@Wabu1 $1M twenty years ago would be like $1.6M today. $1M forty years ago would be like $3 million today. Hardly as stark of a depreciation as people make it out to be.
Regardless, it's quite relative. The chances that a millionaire retiree, 40 years ago, purchased a car with all 4 doors having powered windows and a sunroof, a TV bigger 27", fresh mangos year-round, etc. etc. is very unlikely. So just how poor are today's millionaires?
@@danh2716you should check your compounding assumptions. Seems off.
I plan to retire with $5 million at age 60 with a pension. Many of my friends retired at age 50 with $5 million to $10 million and rental properties. I am far behind them in savings.
@@mocheen4837 but also far far ahead of many.
@@mocheen4837 Quit trying to "keep up with the Jone's". I had a discussion in 2009 with a co-worker about when each of us might retire. At that time I targeted $1 million in investible income. He said he felt he NEEDED a minimum of $3 million. In the end, his number INCLUDED the value of his home. Pretty much anybody can retire with $1 million these days IMHO
My net worth just crossed 1 million yesterday. I was excited to reach the milestone but apparently I am just average.
😃😃😃
average in the US of A is pretty great in the history of the world 🙂
I thought the feeling of reaching that million dollar wealth would be exciting. When I reached that goal, it was more of a satisfying feeling of accomplishing that goal.
Well, Idk if I would call it just average. Plenty of people have that much money but it does feel good to reach that milestone.
Average includes Elon Musk, Warren Buffett, Jeff Bezos, etc. It is a meaningless number.
The best thing I have seen on this subject and it is not mine, is you are comfortable when you do not have to worry about the price of groceries, you are rich when you do not have to worry about the price of a car, and you are wealthy when you do not have to worry about the price of a house.
My 62 year old nextdoor neighbor who brags about everything he has is rich. Me, retired at 54, is wealthy. Thanks for the video and clarifying the difference.
Thanks for the pep talk Erin! I'm glad I was at least rich/wealthy enough to retire and watch TH-cam videos on retirement finance and health care topics. The education has been very valuable resulting in lots of unwasted money.
Excellent video! I have two kids who're very young adults, and I wish they covered this in high school and again in college. Too many kids are influenced by "influencers" who may or may not be wealthy, and they aren't getting this understanding of what it means to be a high earner, what it means to be 'wealthy,' and how to live below their means.
Very true - they believe the college degree means instant six-figure salary. I had this conversation with my kids and nephews. I've seen one nephew think nothing of going into student loan debt by 100k and think he would get a high salary from a run-of the-mill marketing degree. While some can achieve that - they have to have a lot of initiative, creativity, and a portfolio. Unless, of course, they are well-connected and that changes the equation....
Influencers are all about the showy lifestyle to earn their income shelling for companies that pay them, and attracting the eyeballs of the naive that don't understand that wealth is really what they're after, and can never be attained if they're too busy showing off they're "rich". We're wealthy after decades of work, saving, and investing, AND now could show off too if we wanted, but funny thing is, when you get to wealthy, you don't care to show off, all you want to do is enjoy being wealthy (the freedom with your time and the peace of mind that comes with it). Drive same old paid off cars, live in same paid off home, eat in lots (it's better food), but take nice vacations (not more often, just nicer), and splurge for the odd nice thing when we want or need it, but that's it, still pretty modest lifestyle, just very comfortable.
I agree. We still live on a budget and it’s comforting, we have what we need. Our children have followed our lead. The wants fade away as you age. Health and time with our family and friends take priority.
I actually thought about this in my early 20s and it took me ~15 years to get rich and ~25 to get wealthy.
Simply, rich to me means income high enough so I can live comfortably and not having to make sacrifices. Wealthy is high enough net worth so I can sustain that lifestyle as long as I live. I further break that down to active vs passive income and liquid vs illiquid net worth.
Mean average is pushed up by the very richest. I'm 57 (58 in March) and my net worth is $1.2M. My wife and me combined were are a little short of $2M. I consider myself middle class, certainly not rich - nowhere near, not even remotely.
Just look at the TH-cam channel you are watching, you are 10X the median net worth… you are very rich, comparably… and let’s face it, all of this discussion is about… ‘comparably’.
@@jltsoyowdycjltsoyowdyc1076 depends on where you live - we have about 5.7 net worth and about 3.7 liquid - we are comfortable but wealthy in my area starts at 15m+ - crazy but it is what it is.
I was doing some research for my cousins son and came upon you. Love watching your short videos that are socked full of great info!! You remind me of my “messiah of money” Clark Howard. Keep up the good work Erin!!👍
Thanks so much! Welcome to the channel! 🙏
One of your best videos to get me thinking.
While I totally understand the difference between median and mean, I’m still SHOCKED that even the avg net worth is over a million bucks. It’s obvious the gap between median and mean has never been more vast
Knowing the mean in this case tells you nothing.
To me, wealth is about contentment; which in my case means financial discipline to stay within my means, WITH MARGIN. Erin, yet another great segment!
This has been said over and over but when the question arises: Who is rich? The answer is always; The one who is happy with their lot. That being said, if you ask someone who has 5 million dollars and poor health, they would surely give it all back to have the health. Save and invest and hopefully have good health most importantly. One million dollars in Canada will produce 40,000 a year in retirement income on average. That's why i'm still working. Thanks Erin for your beautifully thought out videos, they're great.
Excellent job, Erin! Great to explain wealth vs rich.
I love that you were laying down the law to the sky and climate!!!🤣 I thought only I say things like that! I always love your bloopers! Thanks for being real and vulnerable. 🥰
Your videos are always so comcise and relevant. Even though I feel like I've master many of the points in this, i still benefit from hearing them again. And I always pick up an additional point or two.
Hi Erin. Great out takes, you were very animated it was funny. Todays vid was excellent and I hope your viewers watch it a few times to sieze the full extent of the information and actually let it sink in and have an impact. I'm 75, retired at 62 and was always the sole wage earner. Like you, I was always more risk averse and focused on building wealth, not riches. I was very blessed with a good career and earnings and got started investing in my twenties. We have a very comfortable retirement, with multiple income streams and able to do pretty much anything. The best part is I am able to help support family members, and do generous gifting when needed and appropriate. Kudos to you for your accomplishments and I appreciate all the effort you put into this channel; I am certain it is having an impact. Have a blessed week and I'll see you on the next one. Larry, Central Valley, Ca.
Sound advice and excellent delivery.
Thank you kindly!
Rich: How much you earn.
Wealthy: How much you are worth.
90+% of us won't have to worry about the difference.
Good stuff Erin. Your mother gave you good advice!!!
I am at 3 million investible asset at 40 year old. I rent one bedroom in boston, and my monthly rent is $750 utility included
Where in beantown?
Nobody cares
I’m almost there, same situation. Good place to be right now
Lately, I’m feeling poor and wealthy. We have less to spend and it goes less far, but our net worth is up there and growing. I’m ready to retire snd enjoying some of our savings. Hubby is still worried it will all disappear.
Country's cost of living plays a role.
This is best advice I have ever heard regarding financial freedom. If you heed it, you will achieve financial freedom.
rich = showing off that you "have". wealthy = knowing that you "have".
Agree. Two completely different mindsets.
Love it...
Can you be “wealthy” while having real estate and car debt?…
@@IrisP989 Why not? Net worth also looks at assets, not just liabilities.
It doesn’t seem like a $1M net worth is wealthy in a high cost of living area when there is debt and you work for someone to pay for living (no financial freedom). Regardless of assets. We do not consider ourselves wealthy at all. My husband relies on working (for someone else) and having a rental, index funds, etc. does not allow financial freedom of just spending money left and right, etc.
I'm not obsessed about being rich, but am totally focused on building wealth, the bed on which retirement rests.
Multiple income streams are good, but some have values that place money in a diffrent place than at the top. Agree about spouse and spending; house, auto etc.
On the subject of two streams of income , another way to look at that is if you only have one stream of income be sure to pay yourself first (meaning Investments) and then pay your bills. This will force you to live below your means. This concept was key in building my wealth.
I’m very fortunate that this question is something I do wonder and ask often. At 41 I struggle with under/over saving a lot.
Great commentary on wealth.
Thanks for watching
After being retired 11 years our assets make more than we spend. It feels good.
2 years into retirement, and yes it’s a wonderful feeling! Also interesting that as I get older, I don’t want “things” that I did in my younger years.
Well it depends on the year. I'm only in my early 40s, but my retirement savings nearly earned more than my income in 2024. But that is because I saw over a 20% gain in those savings. In 2022 my retirement savings shrunk.
@@kyleolson9636 understandable considering a typical retirement portfolio in your 40’s would be balanced aggressively as compared to a retired person in their 60’s and beyond. Total comfort is achieved when you can be invested conservatively while still covering your needs with net investment returns. Sounds like you’re in a great place at a young age.
Love how the way numbers can be presented to people vary, case in point exactly how you started the vid! Went from 1M to 196k real fast! LOL
I agree with your mom. It's exactly how we built our wealth. We saved one income and lived off the other because I was always scared of a scenario where one of us might lose our job at any time. We ended up retiring early.
I love that! Congrats on the early retirement! I definitely share that same fear, you never know if someone has a situation where they become unable to work, or they lose their job. I love building security into a financial plan.
One of my favorite finance TH-camrs. Thanks for this amazing content. Cheers. 🙌👏
Wow, thanks! 🙏
Cloudy or sunshine your videos always brighten my day!
Awe 😊🙏
Congrats! We finally did it!
Great video Erin. There is some benefit to extending your spend for your first house if you can and you have good earnings potential. If you pay more for a great location and schools, it is worth a few years of pain to accrue the growth in the house price. Over time and with a bit of luck, your salary will increase with promotions and transfers and the mortgage will become more manageable and affordable. Later in life, I would definitely buy houses well within your means. This worked out for me and some of my friends - doing your homework on the house and location is the key to making this work.
My personal definition for each of these terms is reversed. "Wealthy" is having a nice portfolio of assets which, is able to generate income plus the current amount of equity in your home. I use the term "Rich" for persons that have achieved a very large sum of money (they can lose millions on several investments and, it makes no change in their lifestyle). For myself, this amount would be about $10 million where, I could lose half and still be fine. Now in my 60's, my current Net Worth is $1.1 million and my wife's Net Worth is $600,000 (for a total household Net Worth of $1.7 million). Erin, you talked about having multiple income sources. I am one who, is a strong believer in having multiple retirement income sources. In 2023, I retired and currently have the following retirement income sources: a private sector pension, a public sector pension, IRA, 401(k), 457plan, social security, and personal savings. (smile ....smile).
Back in 2008 I read an article that said the buying power of a million dollars today was about 360 thousand in 1980’s dollars.
two thumbs up for the outtakes!
I have found that I have bothered less and less about the words I use to discribe my financial situation the larger and larger my net worth grows.
Now if someone where to ask how my finances are doing, the honest answer would simply be, "I'm on track with my financial plan."
Average 👎
Median 👍
I’m of the opinion a house shouldn’t be included in net worth calculations, especially if there’s still a mortgage on the house.
Isn't the mortgage subtracted from net worth?
Net Worth includes what your house is worth minus the obligations you have from a mortgage.
But in general, I agree for not including it at all. You need a place to live, so it's not something you can do without. Worse, a house valuation is always approximate, so if you sell your house you may get a lot less than you anticipate.
I guess it depends on the decisions being made based on ‘net worth’
For some net worth is equated to retirement savings. The house shouldn’t be part of retirement planning. As it was said you live in your house, it’s not something you should consider selling to finance your retirement.
If you really want to include the house in net worth then at least use only the equity not its market value.
But if you are doing retirement planning ignore the market value of the house altogether.
You're right on Erin, i tell our kids, it not how much you make, its what you spend.
I have analyzed this question a great deal. I liked the definition that described it this way: Rich people manage their spending, and wealthy people manage their money.
As far as I am concerned, income is unrelated to rich or wealth. Capital is all that matters, and our experience is that about 25 million is a breakpoint between "rich" and "wealthy."
As a general rule, we do not think about spending. But will admit that we are entry-level private jet charterers. And we do think about that spending. We need to fly from Lisbon to Atlanta. $3,900 for the two of us in business class, or $90,000 to fly private. My wife told me the $3,900 is non-refundable, so we aren't spending the 90.
I am wealthy. I live in a tiny house i built out of cash flow located on a lot purchased for cash and I am off grid. I have no mortgage payments and only minimal monthly expenses. I paid cash for an inexpensive used car that i have driven for nearly ten years . This lets me travel both domestically and internationally several times per year, go to restaurants as often as i wish, indulge in a few luxuries, and live a full and enjoyable life all on my social security. An additional benefit of a tiny house is it disincentivizes buying stuff. Where would i put itU?
Well Done!😊
Thanks! 😊
Once had Fortune 50 clients. Some had such a lifestyle, they couldn't slow down or retire! Social circle requirements at this level are tedious.
Their homes and aircraft were also massive expenes.
By that measure we're wealthy. I retired a few months ago, we have no debt, and we've got investments that can fund all our financial obligations with enough left over for a nice set of our wants. There are a lot of people with that level of wealth that you'd never notice. They drive Toyotas and Subarus, have mundane middle class houses, and don't go on expensive trips every other month. But they have enough money to decide what they want to do in life.
Nice video, wish I heard this 40 some years ago...
Is your mother Suze Orman or maybe your uncle is Dave Ramsey ? :) Actually, I believe your video's example's are more true to real life situations, that are easier to understand then both of them.
I believe my wife and I are very average in net worth living in the San Francisco Bay area. Even though we are 3 times over the net worth of the average American as you posted in your title. We retired 2 1/2 years ago and have an income(2 pensions and SS )of about 3/4's of our working income without touching our investments. Our cost of living went way down in retirement, even though we travel several times a year and I budgeted for them before retirement.
Boopers: Weather forecasters are taught in weather school if they aren't sure. " Today there is a 50% chance of...." so they are never wrong.
Thanks for video's!
Bad comparison, Susie Orman is clueless and only wants to sell her books to the financially ignorant.
@@angiepatterson6338 Angie you are correct, however I was just making a joke. I admire what Erin is doing and my comparison was saying she should be making what Orman and Ramsey are or more.Unfortunately, fame and fortune often make people greedy and lose sight of their early goals of helping everyday people.
I personally define being rich as having high absolute net worth (a concrete value of total assets minus liabilities). Being wealthy is having greater access to both tangible (better products & services) and/or intangible benefits (greater personal freedom, less stress, respect, influence etc) from being rich.
Great job ETM! Tony
Thanks for the visit 😊
The Money Guy Show suggests 20/3/8 for car buying. 20/4/10 will get you a nicer car but 20/3/8 will have a better impact to your wealth.
You are awesome Erin !! Many thanks for you work.
We are fortunate enough to have the money to purchase a new vehicle outright. The dealership was still trying to get us to finance the vehicle after we told them we were paying cash. I think they were disappointed that we were going to pay cash. Erin is always on point with her information. Smart financial decisions is key. Great job Erin thank you.
You will often get a better deal if you use their financing, and depending on the state you live in. You can turn right around within 90 days and pay it off.
Was your old car still running?
@@teekay_1 Have never heard a dealer lowering the sale price to buy financed compared to a cash sell.
@@glynnreid1217 Happens all the time. The worst thing to tell a dealer is "I'm paying cash". And I know you won't believe me, but do a little sleuthing on the internet.
When they ask you if you're financing the answer is "I'm considering it, haven't made up my mind yet. Let's talk Out-the-Door price including tax and all fees"
After you get the price, ask him if he can do better if the dealership finances it through their bank.
The person who gives a price first loses in any negotiation.
@@kerwingray9386 yes. We are very busy with our two kids and we get our monies worth out of the vehicle if there is such a thing. It allowed us to give our old car to a family member so they would not have to incur a vehicle loan at least in the immediate future.
Great advise. Reminds me of the book "the millionare nextdoor"
“ I am SO excited for this video” 😊🎵🎶🎵😍.
“I just can’t hide it” 🎵🎶😊😍
Labels are just that : labels, it may help someone feel good about their financial situation compared to others, but in my opinion is none of that matters as we all face different opportunities and challenges. We can only compare to ourselves the day before: am I today better off than yesterday? as a measure to monitor our progress which should include everything else and finances.
Again, great perspective on wealth.
Agree with your advice on house and cars. I would add if you feel you fave to finance a car, you don’t. Purchase a less expense vehicle and after you paid it off don’t go buy a newer vehicle. Start taking what you were paying on the car payment and save it each month. Then you can you can pay for your next vehicle.
Passive income exceeds daily expenses wealth is generated. It's not what you make, it's what you keep that matter.
In economics, you never use a mean average. You use a median average because those at the top screw the the numbers far above most people’s experience because the tops numbers are so huge
Start organizing these videos into multiple online courses. They're really free financial education for the masses. It's a public service you're providing, good on you, plus you're building your own nest egg in the meantime! How rewarding is that?! Thanks on behalf of those of us who've made it and want others to as well. I wish I knew half of what you teach here, long ago. It would have shortened our journey considerably, PLUS gave us assurance and more peace of mind along the way. Educate yourselves folks and ACT on that education. You'll feel richer, be richer, and earn a wealth borne of knowledge and confidence.
I am so impressed with your work ethic! I strongly agree with everything you recommend, and in fact have lived my life this way, and was able to achieve financial independence by the age of 40, before it was a thing. I never thought of myself as rich or wealthy, but 26 years later our net worth is double what it was at 40. Oh, did I mention ... I retired at 40. And we never had one of those really high paying jobs.🙂
I LOVE that! Being able to retire at 40 is incredible! I hope you are having a very enjoyable retirement!!! 😊
That is crazy that the median is under $200K and the mean is 1.06 million.
A recent mention in the news was 3 people in US have 20% of the wealth. Not ironically, they were on the dais for the recent US inauguration.
And the trend has been for that gap to grow!
Why is that? I see a major part of the problem being the safety net people have for not working. We incentivize people to not try to create wealth. We used to have a large middle class, but have decimated them. You can’t get ahead if you are just having the government cover your magic needs.
Not surprising. The richest people have $400+ Billion. And wealth distributions always had such outliers.
No, it’s not. That’s the statistical result of wealth accumulation math. The median and mean are only approximately equal for normally distributed population statistics. Population wealth statistics are never normally distributed because wealth is cumulative. Wealth also isn’t simply linearly cumulative with age, it’s exponentially cumulative with age and the growth rate is highest for those that invest intelligently.
Median statistics for cumulative dependent variables always and necessarily trail their mean statistics. Older people always have more cumulative wealth than people just starting out because they have had time to accumulate their exponentially accumulated wealth. Comparing means and medians for effects that are agnostic of accumulation time are arguments for propagandists.
Great content and video. As always concise, precise and informative. Keep up the great work!
Love the ending!
It's interesting how many folks are unaware of the differences between median and average (let alone talking about the mode, which would most likely be $0 in this example). So many online and print articles conflate the two concepts without understanding the very real and important distinctions. This becomes vitally important when making regulatory and policy decisions by the government.
Funny, I always viewed wealthy as the lower amount and rich as the higher number. Wealthy can afford to do what they want and buy what they want within certain limits. Rich can do it and not even think about the pricetag. The old comicbook "Richie Rich" kind of springs to mind.
I said the same thing. The Median wealth in the US is about $176K for all cohorts of ages.
Great video, thanks Erin.
There is a difference.....money is one part but the one we focus most on.
Thanks for the advice about paying for a car. That's useful.
Watching this at 70 years old I think I did very good 👍
1:18 Lol, average v/s median is 8x difference. When in doubt, always refer the median numbers. Screw average.
Great synopsis!
In my mind, they're synonymous with wealthy sounding a little snootier, which makes me picture old money as opposed to money one earned oneself.
I never heard the term "rich" used this way, but I like it!! I always heard rich and wealthy used the same way. However, I somewhat disagree with your definition of "wealthy". I have an additional term, "comfortable". I look at comfortable the way you described "wealthy". You can live easily off your income stream/investments indefinitely, but you still have to, to some extent, keep to a certain standard of living. An unexpected chance-of-a-lifetime trip comes up that will cost $10K. If you are comfortable, you can probably swing that (assuming it is TRULY a rare occurrence) without significant financial angst, but if it were $100K you probably would have to pass. To me, "wealthy" is where the $100K is noticed, but not a big deal.
Chris Rock had a bit about the difference between being rich and being wealthy.
I thought rich was higher than wealthy. After watching this video, i now have no idea what rich and wealthy mean. I am comfortable.
As Chris Rock said, “Shaquille O’Neal is rich. The old guy signing his checks is wealthy.”
Net worth of one million means nothing with today’s real estate evaluations.
Net monthly cash flow sitting in your favorite place with whom you choose is the secret to being wealthy.
I think being considered rich or wealthy is a matter of perspective. A low income person may look at someone with a high 5 or 6 figure salary as rich (or wealthy). As a modestly high earner, I don’t ponder if I’m rich or wealthy but instead recognize I have the means to be considered both.
My wife will retire with a pension. A type of wealth many Americans used to have. Guaranteed income. The only way we know to guess at a "value" of her pension is to take the yearly pension amount and divide by 4%. My retirement income will come from 401K/IRA. We are figuring SS at 75-80% of current SSA estimates due to funding shortfalls.
Erin, Great video. I would write a lot more, but I am late to the party, and not sure anyone will read. A question for you. WHen you make these video, do you separate them into chapters when filming too? Then edit and put together? Oh BTW, you do still have 3 income streams. Your career, your husband's , and your YT income. (Ever think of getting sponsosred, the amout of money going around blows my mind.) Oh as you know for me, weatlthy and rich. And one thing I would say, if you will focus on wealth, the rich comes naturally. THen your propblem is learning to spend that income.
Wow. So much great advice. I am retired and free of these concerns. I lived all of these recommendations and can say it works.
I can add one additional recommendation. Invest conservatively. If you earn enough to hit your goals without risky investments, there is very little chance you will fail.
Second. Your income is arbitrary. If you believe you are worth more you will find an income source that supports it.
Previously owned cars that have a good reliability history will eliminate one of the biggest drains on your budget. I bought 2 yr old luxury cars that were owned by corporate fleets. They are really well maintained and well depreciated by the time you own them. You get a comfortable ride. Only you know that they are cheaper than all those new Toyotas running around. And always pay cash. In fact the only debt to have is to leverage an appreciating asset like a home in a market that will go up.
I was taxiing for takeoff on a budget airline, and the little boy next to me looked out the window at the private jets parked nearby. “Look Mommy! That’s what millionaires fly!” I said, “No buddy. THIS is what millionaires fly.”