Biggest lesson i learnt in 2022/23 in the trading market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... It took me 5 years to stop trying to predict what about to happen in market based on charts studying, because you never know not having a mentor cost me 5 years of pain I learn to go were the market is wanting to go through the help of my advisor and keep it simple with discipline.
Absolutely! Everything transpired within a year following the guidance of *Camille Alicia Garcia* .Beginning with under $100,000, I am now approximately $17,000 away from reaching a quarter-million dollars.
As long as frugality doesn't rob your life of family, friends, great memories lived without regret. Life is much more than about money and nobody should aim to be the richest man in the graveyard.
There's a huge difference between being cheap and being frugal. Frugality literally can't rob you of family, friends, or great memories, although you could say that the discipline required to be frugal will have you missing out on some social experiences on occasion which is a very healthy compromise to make, particularly while you're just laying down that initial financial foundation and emergency fund; generally $5,000-$10,000 and zero debt, for the average person.
Im retired since 40. Married well and moved to Mexico 🇲🇽. Quality of life through the roof, dont own much, but don’t have many bills or debt. Not the fanciest life but my time is my own. Less is more yall ❤
Being frugal isn’t about not spending. It’s about only spending in alignment with what you value. Our savings rate is 70% and we have everything we want and need.
Well stated. Figure out what’s important to you and spend accordingly. Be selective about how many things you are willing to spend on. In our household, we are more inclined to spend on travel and education, and underspend our income in most other departments.
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my first house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
Please I need someone to help me trade or invest the forex or crypto market because I'm tired of trading in losses myself. I've blown my account twice and it's frustrating.
The lower your self esteem = the higher your costs - and it won't even make you happy. This is today's truth. Thanks for the video. I agree 100%. Today I live within my means, invest about 50% of my salary and reinvest the dividends. My anxiety and blood pressure have dropped to normal levels...
I think you need to achieve a small success at least in one aspect of life to get your self esteem back. For me it was when I got a job in a company I always admired. I was like.. I did it, I have proved myself! Now I don’t care about what others think. So aim for some success in area where you have real passion..
How should I deal with my and my wife relatives who being less successful in life are always trying to make their problems = my problems? They always need help which requires time and money. Mostly time, but it is time taken from my education, self improvement and quality life
@@kosta2177 refuse to help them. Or at least, refuse to help the ones who are chronic help-seekers. Everyone needs help sometime or the other. And even aside from altruism, helping people every now and then is an important investment, so that you'll also have someone to turn to when you need help. But like any investment, it's important to figure out who/what is worth investing in and who is not. Someone who constantly needs help is unlikely to be very useful in your time of need, so you can safely move on and let them deal with their own mess. Now if you have a friend or family member who's trying their best to improve their situation but sometimes needs a helping hand (as we all do) then such a person is definitely worth helping.
I made my last mtg. payment on my house last month. There is nothing like the feeling of financial freedom and the safety and security it offers my family and I. Frugality, focus, discipline and saying "no" is very key. Safety and security is my "why".
Congratulations. I also walked through a divorce and am in the process of paying off my mortgage years early. Alll extra money goes towards paying extra on mortgage principal. Slow and steady wins the race.
Congratulations! When I’ll pay my mortgage off there still will be real estate taxes that are not going anywhere and are only increasing every year. My monthly bill related to owning my house will only reduce in half after paying the mortgage off.
I disagree with this opinion. Financial surplus provides a degree of security, especially in the event of unexpected major expenses (medical, vehicular or home repairs). Those who've lived in financial INsecurity can appreciate this the most.
There is less pressure from friends and family if you’re living frugally. My brother and I did similar degrees and both finished off our student loans within 5 years of graduating. I forbade my parents from telling anyone that I finished my loan but my brother didn’t and he would often show off his new bmw, whereas I still drive my Elantra. People naturally expect him to give them more expensive gifts and lend them money. I actually have more money saved up than my brother atp.
I've been practising frugal wealth for 2 years, I've never been happier. I have everything I need and actually have money in the bank for unexpected expenses.
I enjoyed this well made vlog. I’m a retired CPA and during my “working life” I built and paid for the library of my dreams. I do have the money to do what I want to when I want to, within reason, but spend much of my precious free time at no monetary cost living my dreams in the books I read (or just browse). My money works for me as I read. Sometimes I ponder Warren Buffett’s great insight “If you don’t find a way to make money while you sleep, you will work until you die.” Thankfully, I now make all the money I need while I sleep (or read). And the apple doesn’t fall far from the tree, as just the other day my 30-something daughter told me how much money she made last month as she slept.
My parents have always been frugal and my paternal grandparents, although very wealthy, were the nicest and most unassuming people you’d ever meet. When I was a kid I was jealous of how other kids’ parents spent money while my parents had no interest in new cars and bigger homes. My parents retired early, consider everyday Saturday, still live on a strict budget well below their affordability level, and (unlike others I know, including extended family) have never ever called me for money.
I am a high end house painter in the Nashville TN area. I have lived by these principles my entire adult life. I was living in Philadelphia when the 08 bubble burst. I was wiped off the map. I lived a bare subsistence lifestyle for years after, and there were many times when I felt I would never recover. It was only my discipline that kept me going. But Nashville has been good to me, and I did recover, with the help of good friends, and my reputation. Now I own my first, and perhaps only, modest home. I keep myself and 4 cats fed. There's almost always a $100 bottle of Scotch on the bar tray. And I do this all while working about half time and saving somewhere in the 40-50% range. I do not live the life of most of my peers, and I am totally cool with that. This year was an outlier for me. I was already doing fairly well when I got a celebrity call. My income rose by 30k. What did I splurge on? A $400 wool mattress topper, a $300 Fender Bluetooth speaker, and a $765 set of custom kitchen knives made by a community friend of mine. All 3 of these things will greatly enhance my quality of life, for slightly less than 5% of my excess income.
@@lucrtrvl Real estate in fact, is tough business, not so tough in past few years, but next quarters will be inferno to those, who thinks its riskfree money
I haven't needed to budget for over 15 years. I buy what I need, and on extremely rare occasions buy what I want. I question every purchase, research and price check every large buy, utility or service. I revel in the discipline of the mindset. It can be time consuming, but it's very rewarding.
I know some people think that I am being cheap for not buying the latest gadgets, fancy clothes, or go to upscale restaurants. I use to buy them but then realized i felt good for a little bit but then dissatisfied when the newest trend or gadget changed because other people had it. I wanted to fit in or get the attention. I stopped and focused working on my charisma, fitness, and personality. I'm happier now having good friends and little debt to stress about. Sounds like a win-win.
I am fortunate enough to have been born and raised in a fairly affluent suburb in Melbourne Australia. We had four neighbours in our immediate vicinity that were very wealthy indeed. When I say wealthy, I mean captains of industry type wealthy. Not one of them put on an overt show of wealth. Only one of them owned a house that was above average for the area and even then, it wasn't outrageous. Another lived in a small brick veneer on a small block. Yes, he upgraded his Jaguar every two years but he owned a business that employed four hundred people, so why not. One lived in a fairly rundown weather board cottage and the fourth had a homely but very dated house that just "blended in". There were a number of moderately wealthy people that lived in the area that were all pretty much the same. Then the 80's came, and with it, came new wealth. Big new houses, shiny new Mercedes, boats and swimming pools came with it. And then the 90's recession came. 18% mortgage rates and 10% unemployment came with that. And that's when the banks started putting up mortgagee auction boards around the suburb. And the banks put the auction boards up on all the new shiny houses with the cars and the boats and the swimming pools, but strangely, not the old houses with old cars parked out the front and no boat and no swimming pool. I'm in my fifth decade now. I learned a very long time ago that a great number of truly wealthy people are frugal. And I learned a very long time ago that most of the time, people who you believe to be wealthy, really aren't. And that's why the old saying, "wealth whispers while debt screams" persists to this day.
Seeing that you're in your 50's, I'm sure you've also learned that blanket statements are rarely true. My parents were poor and followed frugality principles in this video to generational wealth. I've made, spent, and lost hundreds of thousands before age 27, and retained a decent net worth. More importantly, I had fun, met many people, and seen the world. People that have lived in beverly hills for 30+ years would spend millions on watches, cars, and boats...so the longevity thing just isn't true. I've learned that the behavior of the wealthy varies from person to person and to not judge a book by it's cover.
@@mysticpresence I certainly accept that generalisations are indeed just that. And I accept that outcomes vary from person to person with regards to spending habits. But that does not change the observations that I made when Australia was in its last recession. And it does not change the observations that I have made of my peers, even in more recent times. But I am just one. Other's experiences will most certainly be different.
So true especially with the 'nobody'- rather look like a nobody on the outside but have options no stress, than look 'perfect' but really have no options, stressed, in debt.
The best feeling in the world is knowing you have much money, but no one knows about this and therefore you live in ultimate peace. The only part about us that desires others’ attention is the ego, and this part of us brings us the most unhappiness. Once you reach a certain maturity level, this video resonates.
Working on contentment in 2023. Sometimes we buy things to replace what we think is missing in our lives…..not necessarily to look wealthy. I have carried the idea as long as we pay ourselves first I don’t have a problem buying or doing something extra. For example I just bought a new motorcycle. Nothing really wrong with my old one. I don’t ride in groups or seek out to show other riders my bike. Actually it is in the garage covered or I take it out for 2 wheel therapy by myself. Pay yourself first and enjoy what you can with the extra.
My dad's wife called me cheap the other day (she said it snarky) and then she realized everyone was watching her be snarky, so she was like "but in a good way"... I don't feel like I'm cheap, I'm frugal. I paid double for my house this year, than what my dad had bought his house for last year (1 block away from each other), just so that i could be closer to him and have lots of time to be with him before we cant do fun things together anymore. If i dont go shopping every week, its not because im trying to be cheap, its just because its not adding value to my life. I'll pay top dollar for something that i think is worth it (to me). I don't think I'm original in the way that i think, but sometimes it's nice to hear that others are doing the same as me. It's funny because I don't push for spenders to save, but they definitely love to say something about how i live bahaha.
I alienated some family members. By most accounts I'm very easy going and non confrontational. This doesn't mean having entitlement to my cashflow or deciding on my purchasings. I'm normally careful on divulging finances, my fault as I had to put them in their place. Perhaps did a cultural boo boo, hopefully forgiven one day.
Do not marry women like your father's wife. They value material possession and public attention over anything your father can provide through his love and masculine frame. These types of modern females are indoctrinated and broken souls who suck you dry like a parasite and spit you out like an empty shell, then move on to the next one after their ego has been satisfied. It's a pathological mental disease that has no cure, so if you spot this once, it will persist until her last day.
@@Bran08Eman Your family members are all too willing to spend money in someone else's wallet. Tell them to worry about what's in their wallets instead of concerning themselves about what's in yours.
I've reached the point professionally where I can actually afford the luxury car I've always wanted and I've come very close to buying it. It's a conscious effort for me to remind myself how great it feels to not have a car payment.
I don't know your financial situation but honestly... if you can afford it and you know it'll make you happy, why not? Frugality is about saving and not spending on useless things, and it sounds like something that you've been contemplating for a while. There are maintenance fees, of course, but if you can afford it, enjoy it!!
@@oliviaw.2842 Frugality is spending judiciously. Economizing so you have money to spend on long-lasting things that really have meaning to you, and getting even those things at the best price possible. 😀
It's important to remember that with the progressive tax system when you reach a new tax bracket income over that level is taxed at the new rate, not all your income.
Simply accruing money for the sake of it is a shabby kind of fake nobility. The FIRE movement has taught me a lot about managing money. But the lack of vision for what to do with that money is continually surprising.
My philosophy is that when investing and building wealth, oftentimes the downforce is ignored, meaning we only care how much a portfolio can go up, not how much it can go down and stay down. That is a big mistake. Same with preserving wealth, the more frugal you are the more powerful a dollar looks and feels.
Your comment on Forrest Gump is why this is one of my favorite movie in the world. People say that Forrest is dumb - no. He's a genius in a way, because he used the positive in his handicap - not caring what people think because they will always think weird of him - to become incredibly successful. He used his ability to *not think* rather than his ability to think, and was always aware that he wasn't smart, so he became incredibly wise.
Agree with Jas. Also, Forrest allowed himself to be himself, he never thought about trying to be something he wasn't and that's what made him so endearing.
Your 'Low expectations' thesis is so true. Im doing pretty well but people must think im a bum based on my beater car and my lack of caring about clothing. Its liberating alright and nobody has their hand out to you.
I have a tiny little orchid plant in a tiny pot that I paid $8 for 7 years ago. It starts blooming around March 1st every year. It makes me just as happy as a greenhouse full of them.
I enjoy riding my bicycle to the store and library. As practically the only person on the sidewalk, constantly I am passed by expensive cars. But I always get a secret chuckle as little do they know that the bicycle bum has a much greater net worth than they may suspect. I have zero interest in trying to impress anyone. Except on the chessboard. ;-)
In general this is the way to live but be generous if you can when you reach financial independence. My splurge is helping others when I can while living a live 9f frugality.
Great message. Realized a lot of this on my own when I went from a salary at the 37% bracket to the 22% bracket. Weird as I would not have thought this until I lived it.
I am in the ag business and all of my competition have had their needs paid by their parents or partners, while I have suffered through self imposed poverty in order to attain my dream which I'd why I now manage the biggest farm in the area, my mentor's, and am the only male who hasn't dropped out, only because I frugally figured out how to grow mushrooms and hydroponics, because my lifestyle forces me to be super adaptive, which is the challenge that has grown me into the wide ranging professional with a list of businesses asking for me to manage them. I've been retrofitting cargo trailer to live in, which I have sold over 10 as campers for profit as I live and built the next. Also lived off grid for boutique eight years on solar panels, where I really discovered the metrics of needs that I actually had, as I built my own wood stoves and lives primarily by headlamp through long cold winters of long summer days producing food. I am so thankful for living under 30k a year throughout my 20s because now I know the bare minimum of what I need to keep production going, and I cherish the most minute gifts, such a my carharts that was the last present from my parents when I left home, and now look completely tattered but is till functional and warm. While I don't make a lot of money, working by myself and producing my own food has eliminated my overhead to where I have saved about 2/3 of my income, and have enough invested now that I'm merely waiting for property values to drop by the end of 2024. I've really been enjoying your insights, it speaks on a linear and logical level so much better than other channel which are talking the talk but not giving the insight that come from years of study and observation. Ps I hope I didn't ound so egotistical about who I am, but as the only male farmer in my area and the only farmer who doesn't have land of his own, I've succeeded only because of frugal habits and minimalism to focus on my studies and observations
Tae, thank you so much for your channel. I have been tracking my money for decades and living the frugal life, like this video so eloquently articulates. And like you hinted at, when we gain some success, it’s normal to want to diverge from what got us there. In my case, I made the mistake of buying Crypto last year on credit, which ended with me loosing money. It hurts, but watching your channel helps because I know the Frugal Wealth is my home, and it’s what I am committed to. It was a costly mistake I made, but it will serve me as a reminder to focus on the principles expressed in your video. Again, thanks for all the clarity you bring to the world.
money doesnt matter. peace of mind, security, comfort, and the ability to say no matters. that's why i work to build wealth. the actual numerical numbers mean nothing. one of my greatest epiphany's was that wanting things will always lead to dissatisfaction. you'll never be able to attain everything you want, because wants are infinite, so you have to learn to be happy with what you have, and anything extra is just that - extra. so many people with SOOO much more than me are extremely unhappy because their wants always outstrip their capacity to buy, which will ALWAYS be the case, ergo people like this will always be unhappy.
I agree with you! I believe if we have a passion for writing or painting or running, etc., if we have loving, healthy relationships...these are the things that bring us fulfillment. Otherwise, people end up running around their whole lives making big purchases (which they often can't afford), trying to find a way to fill a hole that can never, ever be filled with money or things. Money can never fulfill us no matter how much of it we have.
Love the explanation. At 34, I became very frugal and minimalistic in my late 20s and I enjoy my life more every year and have abandoned the idea of owning super cars and mansions, not because I can't achieve those goals, but because I no longer desire the type of attention those items would have garnered me (or the maintenance/tax costs). In the last 10 years my saving and investment habits have doubled my income and I have no debt other than a tiny mortgage payment that I can pay off, but my investments beat the cost of interest on my mortgage well enough. The main question I ask myself now is, what do I want next in terms of experiences that truly light my soul on fire? It's maybe the most liberating feeling that I didn't know was possible to find myself seeing my new priorities from a place that doesn't involve the ego whatsoever. I just want some passive income and a little part time work so I can travel all over to meet and experience people in a ton of places.
@@Fman5555 I think the smartest way to "invest" until you hit your first couple hundred thousand is in your business/side hustle/ or real estate. Stocks normally are such a slow, inconsistent return that it's more for people who just have a ton of extra money they have no immediate plans for. Unfortunately, the government's fiscal response to the pandemic has millions of people thinking that investing in stocks and day trading (gambling) is a viable full-time career. All I did was work 45-50 hours weekly from age 18-23 while starting my side business workin on and selling old motorcycles. I went full time with that in my mid 20s and started doing motorcycles, cars, trucks, boats, RVs and trailers. Find what you love and get into it on a small scale and work your way up.
I'm 37 and a lone wolf type so it's very easy to save. You kinda sound like myself in my late 20s. Keep saving. Keep gaining experience by hopping jobs every couple years. In the meantime keep up your travels, get out of your comfort zone and meet people all over the world. I can't stress how much those experiences impacted my life. Now I have a job with a salary I only dreamed of having. You can still travel, and do it frugally now and later when you make more money. One credit card bonus can pay for an entire vacation for me. I just keep getting out there to the national parks and natural beauty around the world.
We’re doing what we can. Just getting debt free was an awesome life goal. It took my wife and I about 3 1/2 years living on a cheap sailboat and then a travel trailer where rents were $260 & $500 a month respectively. The extra saved from the $1900 a month and extra money all went to debt. Debt free attitude took a lot of pressure off our retirement fund needs as well. We’re still working it into as large as possible but those years reset what is really important in life and what you actually “need” to be happy and material things rank very low in the scheme of things. Happy life all!
Part time work is a great way to knock down the tax bill. I halved my income, but income taxes (my biggest expense) are down ~75%. I kinda wish I did it sooner, but the high income was nice for stacking the investments more quickly.
$60k here. Odd feeling paying more in taxes than I used to make. I feel like the IRS should send me a fruit basket or at least a Christmas Card. Cheers 🍻
I love both the message and how well you structure your points! There’s a line from Shakespeare, that to me, beautifully summarizes your video: “Speak less than you know, have more than you show”
I generally agree with this and I quite enjoyed this video. The portion about taxes is not quite accurate. If you are in the 24% tax bracket, it doesn’t mean that you are losing a quarter of your income. We have a marginal tax system in the US and your income is divided into smaller “buckets”. It only means that your top bucket is taxed at 24%, not all of your income.
I completely agree with whatever you said. me and wife, till 2021 we had to cut down our expenses due to covid and her uni tuition fees. But when she got a job in 2021, our lives changed. and so did our expenses. After six months I noticed we have started spending on items which we never needed or never though of before. We have cut down those expenses and are back to our simple life style. your videos assert my belief in that.
I live in an area where I'd guess most are millionaires. I drive a 25-year-old car, and no one has ever said anything close to derogatory about it. In my experience, not one has bragged about wealth, or even mentioned it. And honestly, if one has enough food, housing, and health, in my book that's worth more than millions.
One of my personal finance rules is, "Don't let people smell your money." If you project to the world that you're rolling in cash, people in your life will often subconsciously consider themselves entitled to a cut of it, causing lots of drama. Don't be stingy and cheap, but do exercise restraint. I like to invest in high-quality clothing, shoes, handbags, and travel gear - but instead of splurging on flashy designer items with gaudy logos, I buy extremely durable and domestically-manufactured basic items that will last for decades, if not lifetimes. Dressing well but modestly means I'm not a target for pickpockets or even nosy relatives. Instead, I can dump my extra cash into retirement funds and a 529 for my niece.
Thank you so much for sharing the knowledge with us. I think the hardest park to live a frugal live is the mentality to stay frugal amidst a capitalist society, where people expect us to portray the amount of wealth we have through our possession. We don't want to get excluded from our circle of friends, or from our work colleagues, so we always try to give in to their expectations. But you were right, to be seen as a nobody is more liberating than having your friends come crawling at you to ask for money they won't even be able to repay you back.
Very similar to the advice I frequently give to young people. I also discuss the time-value of money and the arithmetic "miracle" of compound interest OVER TIME. Having enjoyed a frugal life style all of my life thus far (initially out of necessity and now because it's a preference) I have the financial means to buy virtually anything an individual might crave. But, truthfully, I can think of absolutely nothing that would make me happier. I socialize with friends, play sports, give to charities, etc. without the constraints that the absence of money would impose upon me. It is important to me that I not be conspicuous. Typing this, I am reminded of a casual acquaintance who is among the wealthiest of people (congenital billions accumulated over more than 200 yrs.). He lives "below the radar", has only a very small staff in this country, drives an older, small station wagon, dresses comfortably, etc, and is very happy. Things are more often burdens than sources of joy in life. Happiness comes from within.
When my husband and I got transferred to his new work location, he decided to have an average 1715 square ft, 3/2 house built. My dad, on hearing that we were having a house built, remarked, "Why don't you build something interesting?" My husband and I both knew that "interesting" would mean much more expensive and we stuck to our reasonable plan. As a result, we had it paid off in 11 years. We were very happy about this.
Great video. I enjoy watching, then seeing comments from like minded people. You speak a lot of truth. I wear my old wranglers, iron patches on when they rip and am very low key. We save every dollar we can, invest as much as we can so later on we can in theory retire with dignity. I am a dreamer which does at times blur my ultimate vision for my wife and I however quickly get my head right and stay focused.
Warren Buffet’s house isn’t exactly small. It’s 6570 square feet. To me, living frugally is more about not being wasteful and using money for it’s best use which almost always it’s investing it. Of course there are different levels to wealth and there are people who are extremely wealthy and frugal. I’m pretty introverted so if I were making more money than I could ever spend, I wouldn’t spend it on flashy things like a solid gold Rolex and the latest Lamborghini so everybody pays attention to me. I’d rather have a big house on lots of land so I don’t have to be around people and I can have some peace and quiet. You would’t have to worry about the neighbors new drum set or new Harley Davidson, people stealing your packages, and people always trying to be in your business. Plus it’s nice to be in nature in the mountains.
That's not the point at all. The point is that he still lives in the same house he paid such a long time ago while he could live anywhere in the world and own many mansions in some tax free Paradise.
@@jas_bataille This video is still intentionally misleading. Emphasizing the $31k price he paid without any indication of how deceptive that number is. The value of his home is currently $600k+.
I love the topic and mindset. If you live frugally. You will always be able to bounce back from almost any setback. I love the reference of the movie Forest Gump. The last scenes really hit me at the time even though I was still young and didn’t think about having kids yet. Just how devoted and in awe he was that this smart boy was apart of him. Will definitely need to rewatch.
As an Enrolled Agent with a Master in Taxation, I say he knows what he is talking about, rental depreciation is a pretty good free "tax benefit" if you don't plan to sell it anytime soon. Yes, maxing out pretax accounts is a good idea.
Immediately subbed. You're Canadian and believe that once basic needs are met with a little excess you are Privileged and have to combat feeling u grateful and always wanting more ....fantastic. We make 50/60k I stay home my husband works, I have a small side hustle.... I think I'll love this channel. Yet I'm also torn between living in the furgal zone and the idea of abundance mindset sort of contradicting that as in if I feel poor I stay poor.... I think gratitude goes a long way but if you are TOO stingy you won't have a full life fine balance!
Me and my husband are 36 and we live like broke college students. We just don't care about stuff. After getting out of debt 6+ years ago we just don't have the appetite to consume like that. I like skincare and books, he likes video games and D&D. Even though we are solidly dual income (45k + 65k now) we still live on the lesser income and save the rest. But are planning a big vacation:) priorities
Great video! I'm trying my hardest to live frugally. The one problem I'm having is with my car. I purchased an older Porsche 911 five years ago after years of saving and dreaming. I own the car outright and absolutely love driving it. I take my sons for rides and we attend car shows in it. The problem I'm having is that people tend to treat me differently when they see my pull up in it. Little do they know that I paid less for it than a new Toyota Camry. I'm on the fence about selling it because I don't like the image it portrays. Thanks for the great insights.
Agreee with everything you’ve said. I have everything I need,but good relationships with my children. They want more and more and more. Yet don’t want to sacrifice for it.
Retired at 35. I eat one meal a day. No friends, gf, kids, car, 5G phone, fancy clothes, etc. I save 90% pm. Invest in small cap stocks. And my dividends see me twice a year. I love them.👌
Please post a clarification on how income tax brackets work. Your explanation in this video makes it seem like a higher tax bracket retroactively applies that rate to all income below that bracket but that is not at all the case. That rate only applies to all income that falls within that income bracket's range, while any income earned below the lower limit of that bracket is taxed at the lower bracket's rate.
Great video man. Ive defintely been able to achieve my great amount of wealth at a young age by living way below my means. Example driving a $1500 truck for the past 7 years while achieving a NW of 15m. Same old cheap clothes too =D
I've been frugal my entire life by living below my means. I'm 29, making 92k/yr single w/ no kids, student loans, cc debt or car note. I've paid off all my debt and saved over 6 figures by choosing to stay at home with my parents and live frugally. However, this year I plan on rewarding myself a little bit by buying myself a few luxury items because 1) I can truly afford to and 2) I deserve it. I've been going back and forth on this decision because it goes against what I've been practicing and I feel a bit guilty for wanting these things, but as someone mentioned, it's good to be frugal with your money as long as it doesn't rob you of living life the way you want to live. Love the message here as I practice a frugal lifestyle and I am extremely happy, but it's ok indulge every once in a while :)
I just hope you’re paying your own way while living with your parents. If you’re giving your parents enough money each month to cover your food, utilities, etc. and helping around the house, then I doubt anyone would say anything negative about you buying a few luxuries. If your parents have been paying your way and cleaning your clothes, dishes, and house space, the first order of “luxury” spending should be repaying them for all the money they’ve spent subsidizing your life. I’m guessing you’re in the first situation since you watch this channel. If so, we’ll done!!
I come from segregated poverty, but I have more money than people who grew up coddled and had affluent parents. I blew every dollar thqt touched my hand when I was younger, because I never had anything. I had to mature faster, and I learned the importance of wealth building by 21 (now)
Spend your money but don't waste it. For example, I just make my own coffee over going to Starbucks. Practically the same thing. I put on jacket instead blasting the heater. I won't go to 7 eleven's to get milk but instead I go to Costco. I'm still spending but doing it wisely. I don't plan on hoarding money to the day I die. I just won't throw it in the trash.
You’ve mentioned a money trap here: Costco. They charge you to shop there! Most savings cannot be realized unless you buy in bulk which isn’t practical with fresh food items. Sounds like the cost of membership is increasing too.
Mr. Kim, this is the first video of yours I’ve seen. I believe you nailed it big time here! Terrific work and I just shared it w my family. Maybe next to our client families.
You are kind of being deceptive during the part where you're talking about Warren Buffets' house. Yes, he only paid 30 grand for it back in 1958, but adjusted for inflation, that amount would be over 330,000 dollars today. His homes current value, according to Yahoo Finance, is 1.4 million, and he pays over 20 grand a year in property taxes. He also had it retrofitted with lots of high tech security. Definitely not frugal living.
Love the content on this channel! I honestly find myself learning something practical I can apply to my personal finances. Please keep making more videos. I am hitting all the like buttons!
I inherited almost 1 million dollars earlier this year. My friends insisted I buy a luxury car. Why I asked? My 2011 Honda Civic drives great. I did pay off the house and have a big nest egg! My friends in Oregon still ask when I’m buying a BMW?
@@junc2191 Thsts a good question. My parents told everyone they were multi millionaires. My mother’s father owned a big cattle ranch/ wheat farmer in Canada. My mother told everyone she grew up with a cook, and a maid. My parents were well paid professionals so it wasn’t difficult to have people imagine what my brother and I inherited. Many people thought I inherited millions more and asked me to help them fund gas stations and bars. Yes, I told people in order to shut them up . A friend in Seattle called me this past November to ask if I would buy him a food truck. I said “ no.” My brother who inherited a little more than me ( too long of a story) thought he was going to receive $3 million. He was confused, angry, and sad on his money. I think what I inherited is a dream. If you have money don’t tell anyone not even your kids.
@@mycatlovesme159 thank you for taking the time to reply in such details. How has your life or money views changed since the inheritance?( other than more people asking you for money).
@@junc2191 : I know I can upgrade and stay in a nice hotel or fly first class or buy something from Gucci. Seriously, it brings financial freedom. I still need to work but I have retirement saved.
I lost my way of frugality when I started to look towards what society deems as what matters or wanting to be noticed. Instead of feeling more fulfilling, I was in the same mental rut I was before, if not worse b/c how much I sometimes regret not investing heavily 4-5 yrs earlier (even sooner if counting the day I started earning my own money in high school). It's never too late to practice frugal wealth. And rather than looking back in regret at the poor/none investing decisions, it's better to focus on the present and follow the long-term investing process. One comment on the video though is the section regarding taxes. I felt it was misleading that higher income leads to higher tax brackets. For those who already know, it might not be an issue, but for newer ppl trying to manage their financials, they could misunderstand that higher income means paying all of your income in the higher tax bracket. Of course we know this is not true. The higher tax bracket only applies to the portion of income exceeding the lower bracket before it. Because you practice frugality, it doesn't mean you should not be demanding a salary matching your worth. You can get paid well and live frugally.
Biggest lesson i learnt in 2022/23 in the trading market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... It took me 5 years to stop trying to predict what about to happen in market based on charts studying, because you never know not having a mentor cost me 5 years of pain I learn to go were the market is wanting to go through the help of my advisor and keep it simple with discipline.
@@maryHenokNft I'd be glad to get the help of one, but just how can one spot a reputable one? How did you spot this adviser
Absolutely! Everything transpired within a year following the guidance of *Camille Alicia Garcia* .Beginning with under $100,000, I am now approximately $17,000 away from reaching a quarter-million dollars.
Thank you. I will search on her site online and do my due diligence. If She seem proficient. I write her an email and scheduled a phone call.
As long as frugality doesn't rob your life of family, friends, great memories lived without regret. Life is much more than about money and nobody should aim to be the richest man in the graveyard.
There's a huge difference between being cheap and being frugal. Frugality literally can't rob you of family, friends, or great memories, although you could say that the discipline required to be frugal will have you missing out on some social experiences on occasion which is a very healthy compromise to make, particularly while you're just laying down that initial financial foundation and emergency fund; generally $5,000-$10,000 and zero debt, for the average person.
(o
@@enthused7591 komkmkpmkomkpk
This is like the best statement I’ve read in a long time! I needed this!
💝💝💝
Im retired since 40. Married well and moved to Mexico 🇲🇽. Quality of life through the roof, dont own much, but don’t have many bills or debt. Not the fanciest life but my time is my own. Less is more yall ❤
What do you mean with "married well"? And why México?
Great channel, Shaun. Hello San Pancho. Well wishes.
Being frugal isn’t about not spending. It’s about only spending in alignment with what you value. Our savings rate is 70% and we have everything we want and need.
Goals !
Well stated. Figure out what’s important to you and spend accordingly. Be selective about how many things you are willing to spend on. In our household, we are more inclined to spend on travel and education, and underspend our income in most other departments.
I'm 48years old living in California, I'm hoping to retire at 50 if things keep going well for me. Bought my first house last month and I can't be more proud that am i now. I'm glad I made great decision about my finances that changed me forever but now I can't seem to make any other smart investment.
Please I need someone to help me trade or invest the forex or crypto market because I'm tired of trading in losses myself. I've blown my account twice and it's frustrating.
@@osae4151 Stop speculating on trading and stick with a long term investing plan in low-cost index funds. Wealth isn’t built overnight.
The lower your self esteem = the higher your costs - and it won't even make you happy. This is today's truth. Thanks for the video. I agree 100%. Today I live within my means, invest about 50% of my salary and reinvest the dividends. My anxiety and blood pressure have dropped to normal levels...
How did you rectify a low self esteem? Feel like my family shames my goals, desires and ideas.
I think you need to achieve a small success at least in one aspect of life to get your self esteem back. For me it was when I got a job in a company I always admired. I was like.. I did it, I have proved myself! Now I don’t care about what others think. So aim for some success in area where you have real passion..
How should I deal with my and my wife relatives who being less successful in life are always trying to make their problems = my problems? They always need help which requires time and money. Mostly time, but it is time taken from my education, self improvement and quality life
Same here at about 75% of income.
@@kosta2177 refuse to help them. Or at least, refuse to help the ones who are chronic help-seekers. Everyone needs help sometime or the other. And even aside from altruism, helping people every now and then is an important investment, so that you'll also have someone to turn to when you need help. But like any investment, it's important to figure out who/what is worth investing in and who is not. Someone who constantly needs help is unlikely to be very useful in your time of need, so you can safely move on and let them deal with their own mess. Now if you have a friend or family member who's trying their best to improve their situation but sometimes needs a helping hand (as we all do) then such a person is definitely worth helping.
I made my last mtg. payment on my house last month. There is nothing like the feeling of financial freedom and the safety and security it offers my family and I. Frugality, focus, discipline and saying "no" is very key. Safety and security is my "why".
Congratulations!
@@adrabruzzese7610 thank you. It was a journey with a divorce in the middle of it. Antything is possible. 🤗
Congrats. I’ve done the same. And now the “1st of the month” passes with no meaning! 👊🏼
Congratulations. I also walked through a divorce and am in the process of paying off my mortgage years early. Alll extra money goes towards paying extra on mortgage principal. Slow and steady wins the race.
Congratulations! When I’ll pay my mortgage off there still will be real estate taxes that are not going anywhere and are only increasing every year. My monthly bill related to owning my house will only reduce in half after paying the mortgage off.
"Money isn't that important once our basic needs are met", so so true.
I disagree with this opinion. Financial surplus provides a degree of security, especially in the event of unexpected major expenses (medical, vehicular or home repairs). Those who've lived in financial INsecurity can appreciate this the most.
Indeed😮
Living the way you want is true wealth. I appreciate that line. Doing what I want, not buying what I want, is where freedom really sets in.
As a CPA, I approve this message.
There is less pressure from friends and family if you’re living frugally. My brother and I did similar degrees and both finished off our student loans within 5 years of graduating. I forbade my parents from telling anyone that I finished my loan but my brother didn’t and he would often show off his new bmw, whereas I still drive my Elantra. People naturally expect him to give them more expensive gifts and lend them money. I actually have more money saved up than my brother atp.
There's something to living cheap and secretly having a nest egg. So much peace of mind.
Same. We live frugal and no one expects things
Kudos to you!!
I've been practising frugal wealth for 2 years, I've never been happier. I have everything I need and actually have money in the bank for unexpected expenses.
I enjoyed this well made vlog. I’m a retired CPA and during my “working life” I built and paid for the library of my dreams. I do have the money to do what I want to when I want to, within reason, but spend much of my precious free time at no monetary cost living my dreams in the books I read (or just browse). My money works for me as I read. Sometimes I ponder Warren Buffett’s great insight “If you don’t find a way to make money while you sleep, you will work until you die.” Thankfully, I now make all the money I need while I sleep (or read). And the apple doesn’t fall far from the tree, as just the other day my 30-something daughter told me how much money she made last month as she slept.
My parents have always been frugal and my paternal grandparents, although very wealthy, were the nicest and most unassuming people you’d ever meet. When I was a kid I was jealous of how other kids’ parents spent money while my parents had no interest in new cars and bigger homes. My parents retired early, consider everyday Saturday, still live on a strict budget well below their affordability level, and (unlike others I know, including extended family) have never ever called me for money.
I wear the same jeans every day because no one knows it because all the pants look the same this is just one way to save money thank you tae kwon do .
And never wash the jean unless stained/soil......save even more money.
I am a high end house painter in the Nashville TN area. I have lived by these principles my entire adult life. I was living in Philadelphia when the 08 bubble burst. I was wiped off the map. I lived a bare subsistence lifestyle for years after, and there were many times when I felt I would never recover. It was only my discipline that kept me going. But Nashville has been good to me, and I did recover, with the help of good friends, and my reputation. Now I own my first, and perhaps only, modest home. I keep myself and 4 cats fed. There's almost always a $100 bottle of Scotch on the bar tray. And I do this all while working about half time and saving somewhere in the 40-50% range. I do not live the life of most of my peers, and I am totally cool with that. This year was an outlier for me. I was already doing fairly well when I got a celebrity call. My income rose by 30k. What did I splurge on? A $400 wool mattress topper, a $300 Fender Bluetooth speaker, and a $765 set of custom kitchen knives made by a community friend of mine. All 3 of these things will greatly enhance my quality of life, for slightly less than 5% of my excess income.
I’d bought a rental property with $30K as a downpayment and then would bought all these toys using the income from a rental property.
@@lucrtrvl Real estate in fact, is tough business, not so tough in past few years, but next quarters will be inferno to those, who thinks its riskfree money
I haven't needed to budget for over 15 years. I buy what I need, and on extremely rare occasions buy what I want. I question every purchase, research and price check every large buy, utility or service. I revel in the discipline of the mindset. It can be time consuming, but it's very rewarding.
I know some people think that I am being cheap for not buying the latest gadgets, fancy clothes, or go to upscale restaurants. I use to buy them but then realized i felt good for a little bit but then dissatisfied when the newest trend or gadget changed because other people had it. I wanted to fit in or get the attention. I stopped and focused working on my charisma, fitness, and personality. I'm happier now having good friends and little debt to stress about. Sounds like a win-win.
I am fortunate enough to have been born and raised in a fairly affluent suburb in Melbourne Australia. We had four neighbours in our immediate vicinity that were very wealthy indeed.
When I say wealthy, I mean captains of industry type wealthy. Not one of them put on an overt show of wealth. Only one of them owned a house that was above average for the area and even then, it wasn't outrageous. Another lived in a small brick veneer on a small block.
Yes, he upgraded his Jaguar every two years but he owned a business that employed four hundred people, so why not. One lived in a fairly rundown weather board cottage and the fourth had a homely but very dated house that just "blended in". There were a number of moderately wealthy people that lived in the area that were all pretty much the same.
Then the 80's came, and with it, came new wealth. Big new houses, shiny new Mercedes, boats and swimming pools came with it. And then the 90's recession came. 18% mortgage rates and 10% unemployment came with that.
And that's when the banks started putting up mortgagee auction boards around the suburb.
And the banks put the auction boards up on all the new shiny houses with the cars and the boats and the swimming pools, but strangely, not the old houses with old cars parked out the front and no boat and no swimming pool.
I'm in my fifth decade now. I learned a very long time ago that a great number of truly wealthy people are frugal. And I learned a very long time ago that most of the time, people who you believe to be wealthy, really aren't. And that's why the old saying, "wealth whispers while debt screams" persists to this day.
David, thanks for sharing thought - provoking insights 🤝
Well said!!
Seeing that you're in your 50's, I'm sure you've also learned that blanket statements are rarely true. My parents were poor and followed frugality principles in this video to generational wealth. I've made, spent, and lost hundreds of thousands before age 27, and retained a decent net worth. More importantly, I had fun, met many people, and seen the world. People that have lived in beverly hills for 30+ years would spend millions on watches, cars, and boats...so the longevity thing just isn't true. I've learned that the behavior of the wealthy varies from person to person and to not judge a book by it's cover.
@@mysticpresence I certainly accept that generalisations are indeed just that. And I accept that outcomes vary from person to person with regards to spending habits. But that does not change the observations that I made when Australia was in its last recession. And it does not change the observations that I have made of my peers, even in more recent times.
But I am just one. Other's experiences will most certainly be different.
There is another old saying I rather like that goes, "one can be rich or one can act rich, but one cannot do both". For most this true IMHO.
Living frugal is liberating. I can't imagine going back to how I used to be trying to impress complete strangers with flashy cars and wherever else.
So true especially with the 'nobody'- rather look like a nobody on the outside but have options no stress, than look 'perfect' but really have no options, stressed, in debt.
Simplicity and minimalism really enrich our mind. Real freedom without decision fatigue comes with it too.
The best feeling in the world is knowing you have much money, but no one knows about this and therefore you live in ultimate peace. The only part about us that desires others’ attention is the ego, and this part of us brings us the most unhappiness. Once you reach a certain maturity level, this video resonates.
Working on contentment in 2023.
Sometimes we buy things to replace what we think is missing in our lives…..not necessarily to look wealthy. I have carried the idea as long as we pay ourselves first I don’t have a problem buying or doing something extra. For example I just bought a new motorcycle. Nothing really wrong with my old one. I don’t ride in groups or seek out to show other riders my bike. Actually it is in the garage covered or I take it out for 2 wheel therapy by myself.
Pay yourself first and enjoy what you can with the extra.
My dad's wife called me cheap the other day (she said it snarky) and then she realized everyone was watching her be snarky, so she was like "but in a good way"... I don't feel like I'm cheap, I'm frugal. I paid double for my house this year, than what my dad had bought his house for last year (1 block away from each other), just so that i could be closer to him and have lots of time to be with him before we cant do fun things together anymore. If i dont go shopping every week, its not because im trying to be cheap, its just because its not adding value to my life. I'll pay top dollar for something that i think is worth it (to me). I don't think I'm original in the way that i think, but sometimes it's nice to hear that others are doing the same as me. It's funny because I don't push for spenders to save, but they definitely love to say something about how i live bahaha.
I alienated some family members. By most accounts I'm very easy going and non confrontational. This doesn't mean having entitlement to my cashflow or deciding on my purchasings. I'm normally careful on divulging finances, my fault as I had to put them in their place. Perhaps did a cultural boo boo, hopefully forgiven one day.
Do not marry women like your father's wife. They value material possession and public attention over anything your father can provide through his love and masculine frame. These types of modern females are indoctrinated and broken souls who suck you dry like a parasite and spit you out like an empty shell, then move on to the next one after their ego has been satisfied. It's a pathological mental disease that has no cure, so if you spot this once, it will persist until her last day.
@@Bran08Eman Your family members are all too willing to spend money in someone else's wallet. Tell them to worry about what's in their wallets instead of concerning themselves about what's in yours.
Great video - money is 98% psychology and 2% math. Your behavior towards money will dictate your financial well being. happy investing everyone
I think it’s 97% psychology and 3% math
@@zekewatson6489 yeah you’re right. I’m not very good at math 😂
I've reached the point professionally where I can actually afford the luxury car I've always wanted and I've come very close to buying it. It's a conscious effort for me to remind myself how great it feels to not have a car payment.
And luxury cars have astronomical maintenance fees.
Do a track day once a year in one then hand back the keys
I buy certified pre-owned.
I don't know your financial situation but honestly... if you can afford it and you know it'll make you happy, why not? Frugality is about saving and not spending on useless things, and it sounds like something that you've been contemplating for a while.
There are maintenance fees, of course, but if you can afford it, enjoy it!!
@@oliviaw.2842 Frugality is spending judiciously. Economizing so you have money to spend on long-lasting things that really have meaning to you, and getting even those things at the best price possible. 😀
The Millionaire Next Door is a great resource book on this topic. RIP Thomas Stanley.
It's important to remember that with the progressive tax system when you reach a new tax bracket income over that level is taxed at the new rate, not all your income.
Simply accruing money for the sake of it is a shabby kind of fake nobility. The FIRE movement has taught me a lot about managing money. But the lack of vision for what to do with that money is continually surprising.
Frugality is a good concept unless taken to the extreme.
Yes. Frugal habits keeps you grounded
My philosophy is that when investing and building wealth, oftentimes the downforce is ignored, meaning we only care how much a portfolio can go up, not how much it can go down and stay down. That is a big mistake. Same with preserving wealth, the more frugal you are the more powerful a dollar looks and feels.
Thanks!
Thank you!
i agree with frugal wealth. i love being underestimated and not having any expectations on how one should act or spend.
Your comment on Forrest Gump is why this is one of my favorite movie in the world. People say that Forrest is dumb - no. He's a genius in a way, because he used the positive in his handicap - not caring what people think because they will always think weird of him - to become incredibly successful. He used his ability to *not think* rather than his ability to think, and was always aware that he wasn't smart, so he became incredibly wise.
Agree with Jas. Also, Forrest allowed himself to be himself, he never thought about trying to be something he wasn't and that's what made him so endearing.
My social anxiety basically forced me into a frugal lifestyle. Thanks brain!
Your 'Low expectations' thesis is so true. Im doing pretty well but people must think im a bum based on my beater car and my lack of caring about clothing. Its liberating alright and nobody has their hand out to you.
all right
I have a tiny little orchid plant in a tiny pot that I paid $8 for 7 years ago. It starts blooming around March 1st every year. It makes me just as happy as a greenhouse full of them.
I enjoy riding my bicycle to the store and library. As practically the only person on the sidewalk, constantly I am passed by expensive cars. But I always get a secret chuckle as little do they know that the bicycle bum has a much greater net worth than they may suspect. I have zero interest in trying to impress anyone. Except on the chessboard. ;-)
In general this is the way to live but be generous if you can when you reach financial independence. My splurge is helping others when I can while living a live 9f frugality.
I have no "hey look at me" in me whatsoever. I've had such a difficult decade, treading water. tHanks for the video
Great message. Realized a lot of this on my own when I went from a salary at the 37% bracket to the 22% bracket. Weird as I would not have thought this until I lived it.
I am in the ag business and all of my competition have had their needs paid by their parents or partners, while I have suffered through self imposed poverty in order to attain my dream which I'd why I now manage the biggest farm in the area, my mentor's, and am the only male who hasn't dropped out, only because I frugally figured out how to grow mushrooms and hydroponics, because my lifestyle forces me to be super adaptive, which is the challenge that has grown me into the wide ranging professional with a list of businesses asking for me to manage them. I've been retrofitting cargo trailer to live in, which I have sold over 10 as campers for profit as I live and built the next. Also lived off grid for boutique eight years on solar panels, where I really discovered the metrics of needs that I actually had, as I built my own wood stoves and lives primarily by headlamp through long cold winters of long summer days producing food.
I am so thankful for living under 30k a year throughout my 20s because now I know the bare minimum of what I need to keep production going, and I cherish the most minute gifts, such a my carharts that was the last present from my parents when I left home, and now look completely tattered but is till functional and warm. While I don't make a lot of money, working by myself and producing my own food has eliminated my overhead to where I have saved about 2/3 of my income, and have enough invested now that I'm merely waiting for property values to drop by the end of 2024.
I've really been enjoying your insights, it speaks on a linear and logical level so much better than other channel which are talking the talk but not giving the insight that come from years of study and observation.
Ps I hope I didn't ound so egotistical about who I am, but as the only male farmer in my area and the only farmer who doesn't have land of his own, I've succeeded only because of frugal habits and minimalism to focus on my studies and observations
I do not recommend wearing the same shirt everyday. But a shirt with the same colour everyday is definitely the way to go.
Following Jesus, I see the value of frugality! Thanks for the wisdom, bro
Amen! 🙏🏼✝️🕊️
But we must remember we can't take it with us. Being frugal is great but use your money you don't need to help others.
I got the frugal down pat. Still working on the wealth.
Same!
Some people crave attention; but then again, there are others who don"t. I"m all for the second category. Thanks for the video!
Tae, thank you so much for your channel. I have been tracking my money for decades and living the frugal life, like this video so eloquently articulates. And like you hinted at, when we gain some success, it’s normal to want to diverge from what got us there. In my case, I made the mistake of buying Crypto last year on credit, which ended with me loosing money. It hurts, but watching your channel helps because I know the Frugal Wealth is my home, and it’s what I am committed to. It was a costly mistake I made, but it will serve me as a reminder to focus on the principles expressed in your video.
Again, thanks for all the clarity you bring to the world.
money doesnt matter. peace of mind, security, comfort, and the ability to say no matters. that's why i work to build wealth. the actual numerical numbers mean nothing. one of my greatest epiphany's was that wanting things will always lead to dissatisfaction. you'll never be able to attain everything you want, because wants are infinite, so you have to learn to be happy with what you have, and anything extra is just that - extra. so many people with SOOO much more than me are extremely unhappy because their wants always outstrip their capacity to buy, which will ALWAYS be the case, ergo people like this will always be unhappy.
Agree!
I agree with you! I believe if we have a passion for writing or painting or running, etc., if we have loving, healthy relationships...these are the things that bring us fulfillment. Otherwise, people end up running around their whole lives making big purchases (which they often can't afford), trying to find a way to fill a hole that can never, ever be filled with money or things. Money can never fulfill us no matter how much of it we have.
Love the explanation. At 34, I became very frugal and minimalistic in my late 20s and I enjoy my life more every year and have abandoned the idea of owning super cars and mansions, not because I can't achieve those goals, but because I no longer desire the type of attention those items would have garnered me (or the maintenance/tax costs). In the last 10 years my saving and investment habits have doubled my income and I have no debt other than a tiny mortgage payment that I can pay off, but my investments beat the cost of interest on my mortgage well enough. The main question I ask myself now is, what do I want next in terms of experiences that truly light my soul on fire? It's maybe the most liberating feeling that I didn't know was possible to find myself seeing my new priorities from a place that doesn't involve the ego whatsoever. I just want some passive income and a little part time work so I can travel all over to meet and experience people in a ton of places.
Where did you invest?
This is life!😊
@@Fman5555 I think the smartest way to "invest" until you hit your first couple hundred thousand is in your business/side hustle/ or real estate. Stocks normally are such a slow, inconsistent return that it's more for people who just have a ton of extra money they have no immediate plans for. Unfortunately, the government's fiscal response to the pandemic has millions of people thinking that investing in stocks and day trading (gambling) is a viable full-time career. All I did was work 45-50 hours weekly from age 18-23 while starting my side business workin on and selling old motorcycles. I went full time with that in my mid 20s and started doing motorcycles, cars, trucks, boats, RVs and trailers. Find what you love and get into it on a small scale and work your way up.
You sir, have won at life.
I'm 37 and a lone wolf type so it's very easy to save. You kinda sound like myself in my late 20s. Keep saving. Keep gaining experience by hopping jobs every couple years. In the meantime keep up your travels, get out of your comfort zone and meet people all over the world. I can't stress how much those experiences impacted my life. Now I have a job with a salary I only dreamed of having. You can still travel, and do it frugally now and later when you make more money. One credit card bonus can pay for an entire vacation for me. I just keep getting out there to the national parks and natural beauty around the world.
After your basic needs are met, money can distract you from the things in life that truly give it meaning if you let it.
We’re doing what we can. Just getting debt free was an awesome life goal. It took my wife and I about 3 1/2 years living on a cheap sailboat and then a travel trailer where rents were $260 & $500 a month respectively. The extra saved from the $1900 a month and extra money all went to debt. Debt free attitude took a lot of pressure off our retirement fund needs as well. We’re still working it into as large as possible but those years reset what is really important in life and what you actually “need” to be happy and material things rank very low in the scheme of things. Happy life all!
I am on baby step #7 it is a great feeling not having payments. I hate taxes, I paid 47K just in Federal taxes in 2022. 😭
Fucking hate taxes.
Part time work is a great way to knock down the tax bill. I halved my income, but income taxes (my biggest expense) are down ~75%. I kinda wish I did it sooner, but the high income was nice for stacking the investments more quickly.
$60k here. Odd feeling paying more in taxes than I used to make. I feel like the IRS should send me a fruit basket or at least a Christmas Card. Cheers 🍻
I love both the message and how well you structure your points! There’s a line from Shakespeare, that to me, beautifully summarizes your video: “Speak less than you know, have more than you show”
I generally agree with this and I quite enjoyed this video. The portion about taxes is not quite accurate. If you are in the 24% tax bracket, it doesn’t mean that you are losing a quarter of your income. We have a marginal tax system in the US and your income is divided into smaller “buckets”. It only means that your top bucket is taxed at 24%, not all of your income.
I completely agree with whatever you said. me and wife, till 2021 we had to cut down our expenses due to covid and her uni tuition fees. But when she got a job in 2021, our lives changed. and so did our expenses. After six months I noticed we have started spending on items which we never needed or never though of before. We have cut down those expenses and are back to our simple life style. your videos assert my belief in that.
I live in an area where I'd guess most are millionaires. I drive a 25-year-old car, and no one has ever said anything close to derogatory about it. In my experience, not one has bragged about wealth, or even mentioned it. And honestly, if one has enough food, housing, and health, in my book that's worth more than millions.
One of my personal finance rules is, "Don't let people smell your money." If you project to the world that you're rolling in cash, people in your life will often subconsciously consider themselves entitled to a cut of it, causing lots of drama. Don't be stingy and cheap, but do exercise restraint. I like to invest in high-quality clothing, shoes, handbags, and travel gear - but instead of splurging on flashy designer items with gaudy logos, I buy extremely durable and domestically-manufactured basic items that will last for decades, if not lifetimes. Dressing well but modestly means I'm not a target for pickpockets or even nosy relatives. Instead, I can dump my extra cash into retirement funds and a 529 for my niece.
Thank you so much for sharing the knowledge with us. I think the hardest park to live a frugal live is the mentality to stay frugal amidst a capitalist society, where people expect us to portray the amount of wealth we have through our possession. We don't want to get excluded from our circle of friends, or from our work colleagues, so we always try to give in to their expectations. But you were right, to be seen as a nobody is more liberating than having your friends come crawling at you to ask for money they won't even be able to repay you back.
Tai, as always, I loved this one. I love your unique take on things and this one has a lot of heart.
Very similar to the advice I frequently give to young people. I also discuss the time-value of money and the arithmetic "miracle" of compound interest OVER TIME. Having enjoyed a frugal life style all of my life thus far (initially out of necessity and now because it's a preference) I have the financial means to buy virtually anything an individual might crave. But, truthfully, I can think of absolutely nothing that would make me happier. I socialize with friends, play sports, give to charities, etc. without the constraints that the absence of money would impose upon me. It is important to me that I not be conspicuous. Typing this, I am reminded of a casual acquaintance who is among the wealthiest of people (congenital billions accumulated over more than 200 yrs.). He lives "below the radar", has only a very small staff in this country, drives an older, small station wagon, dresses comfortably, etc, and is very happy. Things are more often burdens than sources of joy in life. Happiness comes from within.
When my husband and I got transferred to his new work location, he decided to have an average 1715 square ft, 3/2 house built. My dad, on hearing that we were having a house built, remarked, "Why don't you build something interesting?" My husband and I both knew that "interesting" would mean much more expensive and we stuck to our reasonable plan. As a result, we had it paid off in 11 years. We were very happy about this.
Great video. I enjoy watching, then seeing comments from like minded people. You speak a lot of truth. I wear my old wranglers, iron patches on when they rip and am very low key. We save every dollar we can, invest as much as we can so later on we can in theory retire with dignity. I am a dreamer which does at times blur my ultimate vision for my wife and I however quickly get my head right and stay focused.
Warren Buffet’s house isn’t exactly small. It’s 6570 square feet. To me, living frugally is more about not being wasteful and using money for it’s best use which almost always it’s investing it. Of course there are different levels to wealth and there are people who are extremely wealthy and frugal. I’m pretty introverted so if I were making more money than I could ever spend, I wouldn’t spend it on flashy things like a solid gold Rolex and the latest Lamborghini so everybody pays attention to me. I’d rather have a big house on lots of land so I don’t have to be around people and I can have some peace and quiet. You would’t have to worry about the neighbors new drum set or new Harley Davidson, people stealing your packages, and people always trying to be in your business. Plus it’s nice to be in nature in the mountains.
That's not the point at all. The point is that he still lives in the same house he paid such a long time ago while he could live anywhere in the world and own many mansions in some tax free Paradise.
@@jas_bataille This video is still intentionally misleading. Emphasizing the $31k price he paid without any indication of how deceptive that number is. The value of his home is currently $600k+.
I don't know why, but I cried a little watching this. This was very touching!
I like your stuff. All very true. Simple and effective. It’s my go to TH-cam channel currently
I love the topic and mindset. If you live frugally. You will always be able to bounce back from almost any setback.
I love the reference of the movie Forest Gump. The last scenes really hit me at the time even though I was still young and didn’t think about having kids yet. Just how devoted and in awe he was that this smart boy was apart of him. Will definitely need to rewatch.
i save 90% of my money after bills and debt. I just eat the necessities to survive. I save about $3500 to 4000 a month avg a month
At 7:56 you’re talking about a study done at Harvard but showing drone footage of Yale University.
Lower expectations, yes! It’s such a good feeling to not feel pressure to compete with the Joneses!
Great advice, thank you. (From the guy with an iphone 7 and 3rd gen apple watch.)
Slow and steady is the key to making a comfortable living without any financial worries. The greatest wealth is great health!
More than Good Advice, but a good way to live and see the world.
This is the first vid I've seen on your channel and you're my fave already!
As an Enrolled Agent with a Master in Taxation, I say he knows what he is talking about, rental depreciation is a pretty good free "tax benefit" if you don't plan to sell it anytime soon. Yes, maxing out pretax accounts is a good idea.
Immediately subbed. You're Canadian and believe that once basic needs are met with a little excess you are Privileged and have to combat feeling u grateful and always wanting more ....fantastic.
We make 50/60k I stay home my husband works, I have a small side hustle.... I think I'll love this channel.
Yet I'm also torn between living in the furgal zone and the idea of abundance mindset sort of contradicting that as in if I feel poor I stay poor.... I think gratitude goes a long way but if you are TOO stingy you won't have a full life fine balance!
Me and my husband are 36 and we live like broke college students. We just don't care about stuff. After getting out of debt 6+ years ago we just don't have the appetite to consume like that. I like skincare and books, he likes video games and D&D. Even though we are solidly dual income (45k + 65k now) we still live on the lesser income and save the rest. But are planning a big vacation:) priorities
Great video! I'm trying my hardest to live frugally. The one problem I'm having is with my car. I purchased an older Porsche 911 five years ago after years of saving and dreaming. I own the car outright and absolutely love driving it. I take my sons for rides and we attend car shows in it.
The problem I'm having is that people tend to treat me differently when they see my pull up in it. Little do they know that I paid less for it than a new Toyota Camry. I'm on the fence about selling it because I don't like the image it portrays.
Thanks for the great insights.
There's "frugal" and "minimalism." You can't take it with you and your ingratitude offspring will thank you for your frugal ways.
Agreee with everything you’ve said. I have everything I need,but good relationships with my children. They want more and more and more. Yet don’t want to sacrifice for it.
Nice to see that I am not the crazy one ;)
Retired at 35. I eat one meal a day. No friends, gf, kids, car, 5G phone, fancy clothes, etc. I save 90% pm. Invest in small cap stocks. And my dividends see me twice a year. I love them.👌
I feel sorry for you.
Please post a clarification on how income tax brackets work. Your explanation in this video makes it seem like a higher tax bracket retroactively applies that rate to all income below that bracket but that is not at all the case. That rate only applies to all income that falls within that income bracket's range, while any income earned below the lower limit of that bracket is taxed at the lower bracket's rate.
Finally I have found somebody that thinks the way I do. Anonymity is freedom.
OMG! I am grateful for discovering your channel! Thank you!
I needed this reminder. Thank you very much.
Great video man. Ive defintely been able to achieve my great amount of wealth at a young age by living way below my means. Example driving a $1500 truck for the past 7 years while achieving a NW of 15m. Same old cheap clothes too =D
I've been frugal my entire life by living below my means. I'm 29, making 92k/yr single w/ no kids, student loans, cc debt or car note. I've paid off all my debt and saved over 6 figures by choosing to stay at home with my parents and live frugally. However, this year I plan on rewarding myself a little bit by buying myself a few luxury items because 1) I can truly afford to and 2) I deserve it. I've been going back and forth on this decision because it goes against what I've been practicing and I feel a bit guilty for wanting these things, but as someone mentioned, it's good to be frugal with your money as long as it doesn't rob you of living life the way you want to live. Love the message here as I practice a frugal lifestyle and I am extremely happy, but it's ok indulge every once in a while :)
If it’s something you value, there’s no harm.
I just hope you’re paying your own way while living with your parents. If you’re giving your parents enough money each month to cover your food, utilities, etc. and helping around the house, then I doubt anyone would say anything negative about you buying a few luxuries. If your parents have been paying your way and cleaning your clothes, dishes, and house space, the first order of “luxury” spending should be repaying them for all the money they’ve spent subsidizing your life. I’m guessing you’re in the first situation since you watch this channel. If so, we’ll done!!
@@cheerfulgirl8835 Yes, definitely in the first situation, lol. My dad says I’m the cheapest person he knows and that I should treat myself sometimes
I come from segregated poverty, but I have more money than people who grew up coddled and had affluent parents. I blew every dollar thqt touched my hand when I was younger, because I never had anything. I had to mature faster, and I learned the importance of wealth building by 21 (now)
When you can finally afford a Lamborghini, you no longer want one. This is another definition of true wealth.
Spend your money but don't waste it. For example, I just make my own coffee over going to Starbucks. Practically the same thing. I put on jacket instead blasting the heater. I won't go to 7 eleven's to get milk but instead I go to Costco. I'm still spending but doing it wisely. I don't plan on hoarding money to the day I die. I just won't throw it in the trash.
You’ve mentioned a money trap here: Costco. They charge you to shop there! Most savings cannot be realized unless you buy in bulk which isn’t practical with fresh food items. Sounds like the cost of membership is increasing too.
Saving money is making money
Mr. Kim, this is the first video of yours I’ve seen. I believe you nailed it big time here! Terrific work and I just shared it w my family. Maybe next to our client families.
You are kind of being deceptive during the part where you're talking about Warren Buffets' house. Yes, he only paid 30 grand for it back in 1958, but adjusted for inflation, that amount would be over 330,000 dollars today. His homes current value, according to Yahoo Finance, is 1.4 million, and he pays over 20 grand a year in property taxes. He also had it retrofitted with lots of high tech security. Definitely not frugal living.
Love the content on this channel! I honestly find myself learning something practical I can apply to my personal finances. Please keep making more videos. I am hitting all the like buttons!
Super helpful and solid. Thanks, Tae. Awesome perspective.
I inherited almost 1 million dollars earlier this year. My friends insisted I buy a luxury car. Why I asked? My 2011 Honda Civic drives great. I did pay off the house and have a big nest egg! My friends in Oregon still ask when I’m buying a BMW?
How did they know you inherited a million? You told them about the amount?
@@junc2191 Thsts a good question. My parents told everyone they were multi millionaires. My mother’s father owned a big cattle ranch/ wheat farmer in Canada. My mother told everyone she grew up with a cook, and a maid. My parents were well paid professionals so it wasn’t difficult to have people imagine what my brother and I inherited. Many people thought I inherited millions more and asked me to help them fund gas stations and bars. Yes, I told people in order to shut them up . A friend in Seattle called me this past November to ask if I would buy him a food truck. I said “ no.”
My brother who inherited a little more than me ( too long of a story) thought he was going to receive $3 million.
He was confused, angry, and sad on his money. I think what I inherited is a dream. If you have money don’t tell anyone not even your kids.
@@mycatlovesme159 thank you for taking the time to reply in such details. How has your life or money views changed since the inheritance?( other than more people asking you for money).
@@junc2191 : I know I can upgrade and stay in a nice hotel or fly first class or buy something from Gucci. Seriously, it brings financial freedom. I still need to work but I have retirement saved.
@@mycatlovesme159 thank you for your reply!
Yes. 37% in taxes. This is a great point about how your lifestyle shows frugality.
Thank you for making this video. I agree with you 100%.
I have some house cleaning I need to do so I get back to the reality of life!
Thanks man. For helping, I’ve decided that I will no longer abide to luxury things
I lost my way of frugality when I started to look towards what society deems as what matters or wanting to be noticed. Instead of feeling more fulfilling, I was in the same mental rut I was before, if not worse b/c how much I sometimes regret not investing heavily 4-5 yrs earlier (even sooner if counting the day I started earning my own money in high school). It's never too late to practice frugal wealth. And rather than looking back in regret at the poor/none investing decisions, it's better to focus on the present and follow the long-term investing process.
One comment on the video though is the section regarding taxes. I felt it was misleading that higher income leads to higher tax brackets. For those who already know, it might not be an issue, but for newer ppl trying to manage their financials, they could misunderstand that higher income means paying all of your income in the higher tax bracket. Of course we know this is not true. The higher tax bracket only applies to the portion of income exceeding the lower bracket before it. Because you practice frugality, it doesn't mean you should not be demanding a salary matching your worth. You can get paid well and live frugally.