I will be forever be Liable to you, you have Transformed my entire life and I continue to preach on your behalf for the whole world to hear. I used to trade on my own but with your help i now make profits using long position and short position strategy. Thank you Angie Chen Owens
2:30 I agree when I was tracking every transaction I was stressing the small transactions that add up. When I put a portion of every paycheck aside for bills automatically and the big stuff was taken care of my “budget” went from “can I afford this small purchase and still have enough left for bills” to “the bills are accounted for is there money left in the secondary account for what I want” and it reduced the stress and worry of always redoing the math to make sure there was enough for everything and instead whatever was in the extra account is fair game because the important stuff is in the main/bill account and doesn’t get touched
Yeah. You still have to track your “guilt free spending” vs fixed expenses. And you have to decide what goes into each category like clothes and types of food, etc. CSP is still a budget and there’s nothing wrong with that, but it is off putting he tries to say it’s not.
Yep. Lots of competition giving "budget" advice. However, call it something new and different, and voila the playing field has changed. That is, unless everybody sees through the obvious marketing ploy.
@@beetsbeetsbeets Hear, hear. As long as you don't go crazy with your categories, it's super manageable. And I am dying on the use of "identify gaps and connect resources to goals" Project manager here as well.
We love renting! We're 50 & 60 and live in an amazing town we wouldn't be able to afford to buy in, but get to enjoy all the perks of living there and have lots left over to grow our investments. The freedom and flexibility are wonderful! 😊
I bought my condo during the pandemic, but that was after keeping an eye on interest rates (extraordinarily low) and the condo market for 6 months (soft at the time…most were selling below asking in my area), crunching the numbers and making sure I could pay for repairs, maintenance, upgrades, etc. that my home wanted/needed. Buying at that time was cheaper in my area (Seattle), and h that difference has just grown. I got lucky and was able to time the market, and real estate is the only time I’m willing to time the market (I’m a believer in DCA when it comes to investing). As a result, I’m still able to max out my HSA, my Roth IRA, put 15% of my salary in my 401(k) and save $500 per paycheck in other savings and investment vehicles. I would never think about buying these days, and instead would do what y’all are doing. The stars don’t align every day, after all!
God that created everything, can make anything happen. “I am the Lord, the God of all mankind. Is anything too hard for me?” Jeremiah 32:27 “With man this is impossible, but with God all things are possible” _Matthew 19:26 “The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him” _Psalm 145: 18-19 “And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.” _ John 14:13-17 “Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.” _ Matthew 17:20-21. "For I, the LORD your God, hold your right hand; it is I who say to you, 'Fear not, I am the one who helps you.” _ Isaiah 41:13 Don’t think He can, know He can. Ask God to become successful.
Some of us enjoy fixing things around the house and yard. Gives purpose to maintaining a home. It’s also very satisfying to see your own progress with projects. I guess it also depends on age. As we get older, we enjoy being home more.
Also, we bought a new constuction for that reason. We bought a fixer upper at the age of 21 and HOLY CRAP that was HARD, but I did all my repairs and upgrades myself. I respect those who would rather rent, but my wife and I enjoy the comfort of being home owners.
What he failed to mention is that a landlord is not losing money when they rent to you. You are paying mortgage plus maintenance and repair PLUS a profit margin. All that is included in the rent. Plus no control over when your rent is raised and by how much
@@autchicab Landlords absolutely can lose money. Do you think they can charge whatever they want as opposed to what is competitive in the market? Yes, let me charge $10,000 a month for this studio because I want to profit!1 What if I miss one month of vacancy? I'm still on the hook for the mortgage and possibly wiped out all the year's profit. Ramit has talked over and over (and over) again about this concept and how landlords sometimes don't even know if they're making a profit. The belief that you are paying landlord's mortgage is simplistic because they can only charge what they can, not what their mortgage costs. Even in this video, he calls this out (22:19)!
I think the issue is that some people don't factor in the upkeep and upgrades that come with owning a home. Either their family never owned a home, and they have a rosy view of home ownership, or they didn't have to get involved with homemaking growing up and are just oblivious to the responsibility. But if someone is eager to take these things on and it's within their budget, I say go for it! Renting makes sense for me right now, but I do look forward to eventually having a place I can work on without having to worry about a landlord or safety deposit😊
I’m a homeowner - but I love the questioning of whether or not it makes sense to buy. It did for me and I can comfortably afford it, but I also bought back in 2021 and could NOT afford to buy the same house now. I do love being able to build and make it mine - currently renovating part of my basement so I have an office and craft room (I wfh), but if the timeline was different, I’d probably be perfectly happy renting now too.
I love the fact that I’ve been watching Ramit long enough that when he said anyone who does personal finance online should 100% expect to get yelled at about some things and I already knew he was talking about the rent vs buying a home debate 😂
I agree with your view of a combined personal responsibility with external structural, socio-economic causes. One must look really at both. True liberation comes when both the individual and the collective have been liberated, not before.
I disagree with you about the spreadsheet thing. I’m one of those people that has a pretty in depth spreadsheet where I enter all of my expenses, savings etc…. But I definitely don’t LIVE in the spreadsheet 😜 If I’m being honest, I maybe spend 30 minutes per week in my spreadsheet. The biggest help I get from the spreadsheet is when I start to go overboard on my spending. It’s a hard reality check for me to see it in a sheet and I’m able to push the brakes 😊
Rethinking the idealized living situation ( house vs renting) is just one of the things we need to do. Prior to the end of WW2, many did not own a house; but also, we were financially better off, compared to today. So Ramiro, thank you for being honest and saying what you have.
I really think that you can only get away with "not budgeting" when you reach a certain income. If you're under 50K a year you have a budget and it's needed. You need to have the space to safely "fail"
Because I own my home outright the only market changes I need to worry about is insurance and taxes. It gives me a sense of security and stability.I do need to be careful and not get caught up in unnecessary remodeling and aesthetics and keep I need to keep a house fund for essential repairs. I don’t think owning a home is necessary for everyone, especially if you may frequently move.
Am sure you can agree that’s an emotional /psychological choice which is perfect fine though it is not a wise financial decision. We are humans not robots so this makes perfect sense if you feel secure and your mental health is at check x
@ so is choosing to take vacations in 5 star hotels… it’s what a person defines as a rich life. I’d rather return to a home that feels like a retreat that I own than go to a retreat that I can only go to a few weeks out of the year.
Definitely! As someone with ADHD and a recovering shopping addict, absolutely nothing has helped me more with getting my shit together (and doing it in a way that's kind towards myself and still makes me feel good instead of hating myself) than YNAB, and it's even fun since assigning my money gives me dopamine and I love seeing my money grow.
I also hate micro budgeting. It was useful for a bit, but it makes me fatigued now. I love macro budgeting though. It enables me to pursue my big goals without feeling guilty about spending on other things or spending my precious time on an unpaid task.
The own [a house] vs. rent question is not just an American thing; the same question is discussed here in Europe. For some people, it's almost a religious thing that owning real estate is the only acceptable goal in life.
I'm feeling alone on that regards, in Portugal every of my friend almost mad at me because i'm not owing a house. Oh god, i'm feeling really alone and also doubt about my decision. It's so hard. By the way, in Portugal own a house it's soooo spency related to how less we earn.
That's interesting. I saw a video a long time ago about renting in Switzerland, where people discussed not feeling the need to own a home and how that was the general attitude in their culture. That always stayed with me. But I guess different countries would have different attitudes, or maybe attitudes have changed. Either way, that was a useful perspective for me to see when I was just starting out, and I still don't think now is a good time for me to buy a home.
You know what else does mean anything? 82% of Americans rating their financial situation as good or very good. People have no idea what a good financial situation is. They vastly overestimate how well they’re doing. Medium net worth of $193,000 for a household means nothing without age ranges. $8,000 in checking is absolutely paycheck to paycheck in the eyes of Americans (meaning it’s not rooted in reality), and $8,000 is not a lot of liquid assets for certain parts of the country with a family size of 4+. Didn’t really like those numbers at all - seemed very flawed
I agree, the numbers are being mis-interpreted. Net worth itself is a vague term, especially if all of it is tied in home equity and not physical cash (which is the case for many people).
Thank you for finally talking about a budgeting app that you recommend! Can you please make a video on how to do a monthly meeting? If you are not budgeting or tracking expenses, how can you know if you have gone beyond what you planned on the CSP. (It's easy to overspend on groceries and dining out)
i think the CSP/Ramit is a little disingenuous in saying you don't need to budget... ultimately if you want to keep your fixed costs at a certain percentage, you need to know the number. personally i just looked at my ACTUAL spending all of last month on my credit cards and other purchases and insurance and stuff. that's my "natural" spending rate. from there you can see if it's too high or good. and knowing that number, i based my future spending/CSP in the sense that i know each month i have roughly x money for fixed expenses, and y money for guilt free. probably, it would make sense to have separate accounts for each. so when i visit the grocery store, i'm not budgeting in the sense that i'm not stressing about a $3 difference in the price of grapes. but i do know that i can't spend $200 every grocery trip.
The first method works well for me! Every penny I have does a job for me! Majority of which goes straight into investments and towards next month and the month after expenses. This is encourages me to ensure to increase my cash flow!!
A mortgage is just rent to the bank. And when I’m 65 still paying rent, you’ll still be paying property taxes. It’s not like you’ll be living in a house with no expenses.
I own my own home now because the control over my environment makes the hassle worthwhile, but taxes and maintenance costs will never end, when I can't do the maintenance any more it would totally make sense to downsize to an apartment.
HAHAHA... the second video..."WTF is going on?" You're awesome. I love that you debunk and call out all these old beliefs (perpetuated by industries like the mortgage industry).
One of the best decisions of my life was buying a house however I was very fortunate to get a nice affordable home and have only done a few repairs the most was getting the roof touched up
The point of owning a house is it's an appreciating asset. Drives me bonkers when people talk about not understanding the point of owning a house; yeah it comes with more responsibilities, phantom costs, etc, but there's a very obvious point to it over renting. We bought a townhouse for 195k and sold it for 245k 5 years later (and did it with no realtor so no fee). We can math out what rent would have cost versus the mortgage, how much we put into upgrades (not much), and the HOA fee, but at the end of the day we walked out with a fat proceeds check to put into our current house. Outside of an extreme scenario where we have to sell for less than we bought the house for we have that equity waiting for us and is a huge safety net. My only regret is not buying a house sooner in life. Not for everyone and lots of people get themselves into trouble via buying when they're not ready to, but people glossing over how houses appreciate blows my freaking mind.
I totally relate to the parents leaving a house situation. I want to sell and my sister doesn’t. It’s not in a great neighborhood and hasn’t been updated since the 80’s. Such a financial burden. The money from the sale would benefit me greatly but not her so there’s no motivation to sell on her end. Meanwhile we have a shared savings account where we each put money in for repairs that could be better invested 🙄
I’ve read like 14-15 business, tax, investment, self help, etc. books. I can personally say that I am very happy that I bought & read your book. It was the 1st book that gave me an actual financial game plan VS hypothetical … minutiae 😊. I’m a nurse trying to do a product startup I invented to prevent kids from drowning. Been working on all aspects I had to learn since 5 years ago: design & prototyping, business, tax, investing, communication, sales, networking, marketing, etc. I now understand why successful people say that the 1st 1 million is the most difficult. It’s because before that threshold, financial momentum isn’t in your favor. How do I break the that threshold asap so I can get this damn product on store shelves? - The Dean
Integrate your values and concerns into your eating habits is essential. Aim for balance and sustainability, rather than strict dietary rules. health and well-being are unique to you. Listen to your body and adjust your approach accordingly. Consider what matters to you and don't let anyone crush your dreams!
The CSP is not an exhaustively detailed budget; that's what Ramit objects to. It's a higher level guideline that encourages accountability without getting lost in the weeds. Watch a few more videos.
imagine living and having a career in New York, and then one day a lawyer calls you and says did you know your parents left you a home? Its in Montana" No thank you!
Ramit… you hate budgeting!! My heart 💔 I get what you’re saying though, it does feel like you’re on a tight rope all the time even when you’re not. I realised the other day that I’ve been “living in my spreadsheet”, I’m not ready to give it up yet but have simplified it loads so I can take a step back. It feels good 😊
i don't think living in the spreadsheet or the budgets or accounts is necessarily a bad thing. for me, i like viewing those things because it reminds me of the good choices i've made and it reminds me why it's all worth it. and i personally like keeping track of what i spend because it helps me focus on what's important, and what i want to spend more or less on.
Yeah I got all the finance tips I need from your book and Netflix show. What I really wanna know is what your hair care routine is? Ramit’s looking fresh out here.
God that created everything, can make anything happen. Don’t think He can, know He can. “I am the Lord, the God of all mankind. Is anything too hard for me?” Jeremiah 32:27 “With man this is impossible, but with God all things are possible” _Matthew 19:26 “The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him” _Psalm 145: 18-19 “And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.” _ John 14:13-17 “Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.” _ Matthew 17:20-21. "For I, the LORD your God, hold your right hand; it is I who say to you, 'Fear not, I am the one who helps you.” _ Isaiah 41:13 Ask God to become successful.
I’m approaching retirement and have saved $650,000 outside my pension account. Given the long-term nature of pension investments, how can I optimize my retirement account for maximum growth? My goal is to retire with 2-3 million within 5 years.
I totally agree; it's ideal for a newbie or near-retiree to consider advisory services in order to avoid mistakes. At first-hand experience since the 2020 pandemic crash to date, I've gained over $2.7M ROI after subsequent investments. IMO, nothing beats expertise.
@donhug Good gains! I basically have cash sitting duck in the bank, but with rising inflation, my savings seem threatened. I want my money to work for me even after retirement; how can I connect with your advisor/coach, if they mean the same thing?
Glen Howard Chester is the licensed advisor I use, he is a hot topic even among financial elitist in lower Manhattan with an aum of over 500m usd. You can Just search the name. You’d find necessary details to work with to set up an appointment.
same thing, i've just been binging the most popular videos. i've learned so much, i feel like i already have all the common info he repeats but it's still nice to watch more videos and get a little extra wisdom
Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country, as very few are literate on the subject. Thanks to Caroline Suzan Olson, the lady you recommended.
I don’t think you can simply overlook a home as an investment. Yes, there are opportunity cost, transaction cost, and expenses you have to consider but in the right home and location, purchased at the right price, there is potential to get a very good return. On top of that, you have to consider utilizing the equity, especially if you have a very low interest rate on your mortgage and how that can help you with other investment opportunities. To someone who is about simplicity like yourself, perhaps this isn’t that appealing. But I don’t think you can generalize that owning a home isn’t worth it. I would say, like any investment, you need to be selective.
@@SPYgirl199812 They're using the term usually generically. Instead of going into the numbers, they start talking about generational wealth as a rationale behind an investing idea/strategy. I might be overgeneralizing. But I cringe now when people talk about generational wealth. I noticed that the richer people are, the less they worry about that because it's a given.
Id never brag about mortgaging a home. My then-fiancé-now-wife and I bought in a nice area and we were lucky to get a 1450 mortgage with 20% down. Yes, we have decent equity in the home, but its just another means of diversifying. We have plenty of investments to do what we want as long as we still keep investing and saving at out 18-30% rate that we do...
I think the thing with houses is that it is a kind of forced savings. Yes renting can be cheaper overall but most people aren't going to save the difference. They're going to spend and waste that money. Homeowners are paying their mortgage and home repair but they money doesn't disappear. Most of it remains as equality so even if they spend everything else they still have something in the house. That is why most studies show that homeowners have much higher net-worth than renters.
We roughly do 50/20/30 and I still use YNAB to budget my guilt free spending. Good for anyone else who doesn’t need to budget because they don’t live so close to the edge of wanting to spend everything they can without tracking, but that’s not me 😂
On the housing topic, I agree that owning a home isnt for everyone. There is a time and place for every housing situation. Renting is great for all the reasons you stated but owning is also fantastic for all the reasons you failed to mention. If the commentor stated they made a $320k profit from their home, i seriously doubt they care much about the transactional things like fees, commissions, "furniture" and all the other negligible things you mentioned. Subtract all that and you still have a HUGE deposit hitting your bank account which, if you kept your house for more than 2 years, is 100% free from capital gains tax. Owning a home and paying it off CAN be very lucrative. You can earn mailbox money on a bigger house that you owned when you had kids and now that income is paying your mortgage on a smaller home for you and your spouse. Now you're living rent free and will likely have not just one home to pass down to your kids, but two. Another thing that is failed to be mentioned is that when comparing investing 300k to buying a home for 300k is are you paying cash? If not, most people wont be getting a loan for 300k to go drop in the stock market. Thats a crazy gamble if you dont have the assets to back it up. At least with a house, theres a very limited chance the market will decrease amd your home loses value. If you get in a pinch, you can always sell and walk away with a little equity cash. Renting, you walk away with nothing. I dont think the issue for everyone is able to be compared in an apples to apples scenario. I believe there are many factors at play and that people who have careers and intend to stick with the same employer long term absolutely should consider buying. The pro's definitely outweigh the cons. Will there be expenses to owning? Sure! But the cost of renting is nearly 2x the mortgage note. Imagine paying $1500/mo to the LL when you can be paying $750 to the bank and investing the other $750 in the market. Omg, my water heater broke? Pull out $1200 and buy a new one. Move on. At the end of the year, provided you dont have any MAJOR expenses, you save idk.. a s-ton of money! Sure theres insurance and utilities and whatever but even when all these costs are added, there is still monetary value in owning over renting. The only value i see in renting is flexibility.
Not to mention....as a renter you are literally surrounded by the crush of humanity around you 24/7. I bought a nice house out in the countryside and have plenty of privacy. No loud neighbours to contend with. No loud city noises to deal with. Surrounded by nature is the best thing about our house.... You're not finding that in the city.
This is why a condo is a happy medium for those that want to own property, but don’t want to deal with a leaky roof, yard work, etc. Yes, an HOA can be a pain, but with a well managed and realistic HOA, owning a condo (as long as you crunch the numbers and the numbers say that it makes sense to own instead of rent, of course!) may be a better choice. I’ve owned my condo for 3.5 years and it’s still been cheaper to own for me…BUT I also got lucky with a great price and once in a lifetime interest rates (less than 3%), which made a difference. If I was trying to make the decision now, I would rent instead of buy.
I had received (as the last living next of kin, and therefore sole heir to my father’s estate) a modest inheritance. However, given the fact that I am disabled (I am considered legally blind and am autistic) and on SSI at the time (and I still am, something that I’m very slowly trying to change, with plenty of obstacles to overcome), finding a place I could afford WITHOUT exhausting the inheritance (as it could be a crucial lifeline in my journey to maybe even getting off of SSI for good, albeit a big maybe, if I’m being honest) was really important. My probate attorney, a realtor-turned-friend, and I set our eyes on a manufactured home. It’s a VERY nice 850 square foot 2 bedroom, 1 bath single wide, perfect for me, as I live by myself. I turned the second bedroom into a sensory room for myself (the best place for me to be when I’m overwhelmed, overstimulated, and either on the verge, during, or after an autistic meltdown. The best part is that it’s mine . . . The home, that is. The land, not so much, as it’s in a manufactured home park. However, this isn’t THAT big of a deal. Yes, the space rent will most likely go up every year. However, my goal is to eventually get myself off of SSI, and even IF I don’t succeed in that regard, the special needs trust - which would appreciate in value VERY SLOWLY over time - and my SSI could sustain me. Nevertheless, fingers crossed that someday I might not, despite my disabilities, need the SSI and can focus on thriving rather than just surviving. I know, however, that buying a house would have been the financial equivalent to shooting my own foot. Exhausting that inheritance would have left no financial cushion, no lifeline, if the unexpected happened. And that was an expense I could absolutely not afford to risk leaving to chance.
In other words, stability was more important to me than profitability, autonomy (yes, there are rules governing mobile home ownership as well, not entirely different from HOA’s to a limited sense, I suspect), and full ownership.
@@AceAspie11.2.24 agreed, as a fellow neurodivergent person (AuDHD). That was a big part of it for me as well, since I didn’t know how much longer I’d be able to continue working, which is why I’m voluntarily paying PMI right now in order to take advantage of the market and interest rates back in late 2020. I was just lucky that both my need for autonomy and solid financial decisions were met in my situation. I’m also glad that you’re in a situation that works for you. 🙂
I actually like owning a house. I love doing repairs myself since I am in construction. But to the guy that said he made 300k from his house, news flash, you haven't made a dime until you sell that house. Owning a home is a liability. So far I have only spent money on my house. Yes, I have a lot of equity, but It has yet to make me any money as I do not plan on selling this house.
Ask God to become successful. “I am the Lord, the God of all mankind. Is anything too hard for me?” Jeremiah 32:27 “With man this is impossible, but with God all things are possible” _Matthew 19:26 “And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.” _ John 14:13-17 “Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.” _ Matthew 17:20-21. “The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him” _Psalm 145: 18-19 God that created everything, can make anything happen. Don’t think He can, know He can.
I haven't lived anywhere near my family lives in decades. I would not want to be left a house that I would then be in charge of selling. I wouldn't uproot just for a house.
I am curious how this applies to independent contractors like musicians. Typically we are advised to save more and track everything business expense wise. Could you do a video on this subject matter range?
Ramit, I recently was introduced to your channel and really enjoy your channel. My job offers an ESPP plan which I take advantage of. I'd love to hear your thoughts on how to handle these types of funds. What I currently do is save it and don't include it in my conscience spending plan. Any advice on this would be very much appreciated.
On the homeowning vs renting topic (especially the Boomer+ comment on buying a home at $180K that is now worth $500K), why does no one ever talk abut affording the increased property taxes and insurance costs on that half million dollar home. That person is probably paying as much on those two items as the original mortgage when he first bought. Not to mention, any repair costs remain at market rate. You're not paying the plumber today like you could in 1998 when something breaks.
Ramit, I wonder what do you think of buying houses and multiple properties to become that landlord as a business. Is it profitable? I’m 22 with a savings rate of almost 50% so I plan to have enough to realistically retire by 40-45, then start buying rentals. Maybe I’ll think of some other business, but I don’t want to retire and do nothing.
I think the word budget is misused & totally misunderstood. Whether you budget by writing it down or mentally, you decide how much you’re going to spend on your finance areas-hence budgeting
Ask God to become successful. “I am the Lord, the God of all mankind. Is anything too hard for me?” Jeremiah 32:27 “With man this is impossible, but with God all things are possible” _Matthew 19:26 “And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.” _ John 14:13-17 “Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.” _ Matthew 17:20-21. “The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him” _Psalm 145: 18-19 God that created everything, can make anything happen. Don’t think He can, know He can.
Watching from Greece, a bit different situation here on housing as available houses are scarse and with few floors. This way their value is high in cities but the rent skyrockets so usually the mortgage payments are of same level or even a bit less than the same realty in rent. (Maybe also Airbnbs are to blame). Also landlords are mostly of the bad kind with mentallity like: "I dont have much money, you pay what you 'broke' (meaning maintenance costs!). Funfact: the "buy your house for you and your kids" logic was strong here too. Also, most parents will give for inheritance one house to two or more kids so it is typical now that we millenials have split ownership on such a house and nobody can actually use it or sell it rendering them the most useless kind of investment ever (and reason for intrafamily fights). Many thanks from Athens, keep up the good content!
How do you track your monthly percent targets in a CSP without tracking costs or a budget? 🤔 How do I get those percentages in actuals to compare to my CSP?
I love nearly everything Ramit talks about except budgeting. My wife and I have money taken out of my paycheck when I get paid that goes to our retirement accounts. We also set aside money for savings. The rest is for us to spend. However, unless we track our expenses, we don't know how much money we have left. We can live a rich life while using a budget, Ramit! Stop spouting that a budget is bad. Geez.
For sure, the second lady is rich with words but I'm not so convinced about her being rich with money after all of that lol. Ramit's reaction makes me laugh but I appreciate the positives he took from it. As for buying a house, it is an emotional expenditure and many people equate their emotions with logic like the comments show. I want to buy a house, not because its an investment, or to leave with my children but because its a dream of mine due to childhood feelings of insecurity because I didn't grow up in one (grew up in a rented apartment with my parents and siblings).
The argument about having a house to leave your kids is especially funny to me. Both of my parents own houses and... I don't want either one of them. Yeah, they could be sold, but assuming nothing terrible happens, my parents shouldn't be going anywhere until I'm retired or almost retired anyways. By that time in my life, even selling a house isn't going to make a meaningful difference in my life (especially after settling whatever debts are on their estates and splitting it with my brother). It's a good thought, but in practice I think most people are probably in a similar situation.
I don't have a house to build wealth, I have a house because by the time I retire I NEED to have a paid for place to live. I won't be able to make rent payments when I'm 80
I own a home too, but please understand after your mortgage is paid off you still need to pay for property taxes, insurance, and maintenance. Often these things will cost more than rent.
When you are retired you’ll still pay property tax, home owners insurance, and maintenance. So you’re still paying. These are sensitive to inflation, unlike your mortgage. I think not being beholden to a landlord and not having to move when you’re old because the landlord decides to sell is a big positive. I can’t imagine being 80 and having my landlord to me to move out.
Lmao so glad Ramit's team decided to hit him with a manifesting wealth TikTok
It's like a hocus pocus incantation. I would not listen to that influencer.
I will be forever be Liable to you, you have Transformed my entire life and I continue to preach on your behalf for the whole world to hear. I used to trade on my own but with your help i now make profits using long position and short position strategy. Thank you Angie Chen Owens
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
Angie Owens strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.
I'm new at this, please how can I reach her?
I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much.
2:30 I agree when I was tracking every transaction I was stressing the small transactions that add up. When I put a portion of every paycheck aside for bills automatically and the big stuff was taken care of my “budget” went from “can I afford this small purchase and still have enough left for bills” to “the bills are accounted for is there money left in the secondary account for what I want” and it reduced the stress and worry of always redoing the math to make sure there was enough for everything and instead whatever was in the extra account is fair game because the important stuff is in the main/bill account and doesn’t get touched
Ramit your whole business is a budget…. A CSP is your terminology. It’s like me calling skittles a twix….. it’s still skittles bro 😅
Yeah. You still have to track your “guilt free spending” vs fixed expenses. And you have to decide what goes into each category like clothes and types of food, etc. CSP is still a budget and there’s nothing wrong with that, but it is off putting he tries to say it’s not.
@@925ProphetI love his content overall, but this is the one point I hate.
Agree. Keeping track of your finances and how you use it IS budgeting. Love Ramit's content, but let's just call a spade a spade.
Yep. Lots of competition giving "budget" advice. However, call it something new and different, and voila the playing field has changed. That is, unless everybody sees through the obvious marketing ploy.
Let the man cook
Didn't realize all you needed to have a rich life was faith, trust, and pixie dust
Where can I buy pixie dust..I live in the Northeast.
@@joycef8443it falls down from the heavens
😂
Pixie dust is the important part. It’s a zero sum pixie game.
Well sure, faith in your trust fund and access to a designer drug called pixie dust will do wonders!
I loved that spreadsheet the first woman was showing and then you said projects mangers love them! I felt so called out 🤣 Project manager here 🙋🏻♀️😂
Same. Point is that once you have it, you can quickly identify gaps and connect resources to goals.
@@beetsbeetsbeets Hear, hear. As long as you don't go crazy with your categories, it's super manageable. And I am dying on the use of "identify gaps and connect resources to goals" Project manager here as well.
Her 3 buckets are essentially accounting. Assets, liabilities and equity. That's cpa 101
Data analyst here and it’s so lovely to see hahaha
I've used her spreadsheet for the past two years and I love it!
We love renting! We're 50 & 60 and live in an amazing town we wouldn't be able to afford to buy in, but get to enjoy all the perks of living there and have lots left over to grow our investments. The freedom and flexibility are wonderful! 😊
I bought my condo during the pandemic, but that was after keeping an eye on interest rates (extraordinarily low) and the condo market for 6 months (soft at the time…most were selling below asking in my area), crunching the numbers and making sure I could pay for repairs, maintenance, upgrades, etc. that my home wanted/needed.
Buying at that time was cheaper in my area (Seattle), and h that difference has just grown. I got lucky and was able to time the market, and real estate is the only time I’m willing to time the market (I’m a believer in DCA when it comes to investing). As a result, I’m still able to max out my HSA, my Roth IRA, put 15% of my salary in my 401(k) and save $500 per paycheck in other savings and investment vehicles.
I would never think about buying these days, and instead would do what y’all are doing. The stars don’t align every day, after all!
I love renters 😊
“I'm rich, I'm rich, I'm rich….” Checks bank account…..
😂
...and? 😒
God that created everything, can make anything happen.
“I am the Lord, the God of all mankind. Is anything too hard for me?”
Jeremiah 32:27
“With man this is impossible, but with God all things are possible”
_Matthew 19:26
“The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him”
_Psalm 145: 18-19
“And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.”
_ John 14:13-17
“Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.”
_ Matthew 17:20-21.
"For I, the LORD your God, hold your right hand; it is I who say to you, 'Fear not, I am the one who helps you.”
_ Isaiah 41:13
Don’t think He can, know He can.
Ask God to become successful.
@@kay9056 he was rich, hence no time to reply to youtube comments anymore but rather spends time golfing with bankers
😂I😂
Some of us enjoy fixing things around the house and yard. Gives purpose to maintaining a home. It’s also very satisfying to see your own progress with projects. I guess it also depends on age. As we get older, we enjoy being home more.
Also, we bought a new constuction for that reason. We bought a fixer upper at the age of 21 and HOLY CRAP that was HARD, but I did all my repairs and upgrades myself. I respect those who would rather rent, but my wife and I enjoy the comfort of being home owners.
What he failed to mention is that a landlord is not losing money when they rent to you. You are paying mortgage plus maintenance and repair PLUS a profit margin. All that is included in the rent. Plus no control over when your rent is raised and by how much
@@autchicab Landlords absolutely can lose money. Do you think they can charge whatever they want as opposed to what is competitive in the market?
Yes, let me charge $10,000 a month for this studio because I want to profit!1 What if I miss one month of vacancy? I'm still on the hook for the mortgage and possibly wiped out all the year's profit.
Ramit has talked over and over (and over) again about this concept and how landlords sometimes don't even know if they're making a profit. The belief that you are paying landlord's mortgage is simplistic because they can only charge what they can, not what their mortgage costs. Even in this video, he calls this out (22:19)!
I think the issue is that some people don't factor in the upkeep and upgrades that come with owning a home. Either their family never owned a home, and they have a rosy view of home ownership, or they didn't have to get involved with homemaking growing up and are just oblivious to the responsibility. But if someone is eager to take these things on and it's within their budget, I say go for it!
Renting makes sense for me right now, but I do look forward to eventually having a place I can work on without having to worry about a landlord or safety deposit😊
Love YNAB!!! Makes keeping track of finances so enjoyable for me.
Inherit a house or a portfolio. That blew my mind because it's so true! Thank you for all the advice ❤
I’m a homeowner - but I love the questioning of whether or not it makes sense to buy. It did for me and I can comfortably afford it, but I also bought back in 2021 and could NOT afford to buy the same house now.
I do love being able to build and make it mine - currently renovating part of my basement so I have an office and craft room (I wfh), but if the timeline was different, I’d probably be perfectly happy renting now too.
Ngl manifesting the cashmere sweater was amazing 🤣
I love the fact that I’ve been watching Ramit long enough that when he said anyone who does personal finance online should 100% expect to get yelled at about some things and I already knew he was talking about the rent vs buying a home debate 😂
I agree with your view of a combined personal responsibility with external structural, socio-economic causes.
One must look really at both.
True liberation comes when both the individual and the collective have been liberated, not before.
You will achieve true education when you are able to simplify your speech.
I disagree with you about the spreadsheet thing. I’m one of those people that has a pretty in depth spreadsheet where I enter all of my expenses, savings etc…. But I definitely don’t LIVE in the spreadsheet 😜 If I’m being honest, I maybe spend 30 minutes per week in my spreadsheet.
The biggest help I get from the spreadsheet is when I start to go overboard on my spending. It’s a hard reality check for me to see it in a sheet and I’m able to push the brakes 😊
Rethinking the idealized living situation ( house vs renting) is just one of the things we need to do. Prior to the end of WW2, many did not own a house; but also, we were financially better off, compared to today. So Ramiro, thank you for being honest and saying what you have.
I is funny… I is wealthy… people like me… I is nice… I is respectful.. now let’s get that $
I really think that you can only get away with "not budgeting" when you reach a certain income. If you're under 50K a year you have a budget and it's needed. You need to have the space to safely "fail"
Because I own my home outright the only market changes I need to worry about is insurance and taxes. It gives me a sense of security and stability.I do need to be careful and not get caught up in unnecessary remodeling and aesthetics and keep I need to keep a house fund for essential repairs. I don’t think owning a home is necessary for everyone, especially if you may frequently move.
Am sure you can agree that’s an emotional /psychological choice which is perfect fine though it is not a wise financial decision. We are humans not robots so this makes perfect sense if you feel secure and your mental health is at check x
@ so is choosing to take vacations in 5 star hotels… it’s what a person defines as a rich life. I’d rather return to a home that feels like a retreat that I own than go to a retreat that I can only go to a few weeks out of the year.
Here to say YNAB is awesome. Great to hear it being recommended!
Same!! Legit transformed my finances
Definitely! As someone with ADHD and a recovering shopping addict, absolutely nothing has helped me more with getting my shit together (and doing it in a way that's kind towards myself and still makes me feel good instead of hating myself) than YNAB, and it's even fun since assigning my money gives me dopamine and I love seeing my money grow.
Changed My life! But I'd love to graduate away from it, like Ramit says
Yeah what's the point of budgets, I don't understand. The rent, phone bill etc will cost what they cost regardless.
Finally!! YNAB! Yes. Can't skip leg day. But you're right also, one day, they can focus on cash management
I use both YNAB to track/plan down to the penny AND a CSP because there's value in both 🤷
We budget and we're debt free. That works for us. Ramit, one size DOES NOT fit all.
The rent is mentally tough when the cost keeps going up and up. But, obviously, so does the cost of owning or renovating.
I also hate micro budgeting. It was useful for a bit, but it makes me fatigued now. I love macro budgeting though. It enables me to pursue my big goals without feeling guilty about spending on other things or spending my precious time on an unpaid task.
The look of genuine shock and horror on Ramit's face at 11:45 😂
It’s the disgusted stank face at 13:24 for me 🤣
The own [a house] vs. rent question is not just an American thing; the same question is discussed here in Europe. For some people, it's almost a religious thing that owning real estate is the only acceptable goal in life.
I'm feeling alone on that regards, in Portugal every of my friend almost mad at me because i'm not owing a house. Oh god, i'm feeling really alone and also doubt about my decision. It's so hard. By the way, in Portugal own a house it's soooo spency related to how less we earn.
That's interesting. I saw a video a long time ago about renting in Switzerland, where people discussed not feeling the need to own a home and how that was the general attitude in their culture. That always stayed with me. But I guess different countries would have different attitudes, or maybe attitudes have changed. Either way, that was a useful perspective for me to see when I was just starting out, and I still don't think now is a good time for me to buy a home.
There's even a step up from that:
A couple in his show complained that they still live in their "starter home" 😮
Here in Brazil too 😂
You know what else does mean anything? 82% of Americans rating their financial situation as good or very good.
People have no idea what a good financial situation is. They vastly overestimate how well they’re doing.
Medium net worth of $193,000 for a household means nothing without age ranges.
$8,000 in checking is absolutely paycheck to paycheck in the eyes of Americans (meaning it’s not rooted in reality), and $8,000 is not a lot of liquid assets for certain parts of the country with a family size of 4+.
Didn’t really like those numbers at all - seemed very flawed
I agree, the numbers are being mis-interpreted. Net worth itself is a vague term, especially if all of it is tied in home equity and not physical cash (which is the case for many people).
Great positivity. This video could have easily been a "let's dunk on people", but you're better than that.
Thank you for finally talking about a budgeting app that you recommend! Can you please make a video on how to do a monthly meeting? If you are not budgeting or tracking expenses, how can you know if you have gone beyond what you planned on the CSP. (It's easy to overspend on groceries and dining out)
This will be in my new book, Money for Couples. Get the book here: iwt.com/moneyforcouples
i think the CSP/Ramit is a little disingenuous in saying you don't need to budget... ultimately if you want to keep your fixed costs at a certain percentage, you need to know the number.
personally i just looked at my ACTUAL spending all of last month on my credit cards and other purchases and insurance and stuff. that's my "natural" spending rate. from there you can see if it's too high or good. and knowing that number, i based my future spending/CSP in the sense that i know each month i have roughly x money for fixed expenses, and y money for guilt free. probably, it would make sense to have separate accounts for each. so when i visit the grocery store, i'm not budgeting in the sense that i'm not stressing about a $3 difference in the price of grapes. but i do know that i can't spend $200 every grocery trip.
The first method works well for me! Every penny I have does a job for me! Majority of which goes straight into investments and towards next month and the month after expenses.
This is encourages me to ensure to increase my cash flow!!
A mortgage is just rent to the bank. And when I’m 65 still paying rent, you’ll still be paying property taxes. It’s not like you’ll be living in a house with no expenses.
Property tax, insurance and HOA that are left over once you are done with principal and interest are much lower than rent.
@@zedalvea841that is a complete joke, saying it like it is a blanket thing.
I own my own home now because the control over my environment makes the hassle worthwhile, but taxes and maintenance costs will never end, when I can't do the maintenance any more it would totally make sense to downsize to an apartment.
Your videos continue to get better! The part where you talk about working out - absolutely awesome! Keep up the great work Ramit
~Only project managers care about budget spreadsheets
Dang you got me. As a PM, that hits deep 😂
HAHAHA... the second video..."WTF is going on?" You're awesome.
I love that you debunk and call out all these old beliefs (perpetuated by industries like the mortgage industry).
One of the best decisions of my life was buying a house however I was very fortunate to get a nice affordable home and have only done a few repairs the most was getting the roof touched up
The point of owning a house is it's an appreciating asset. Drives me bonkers when people talk about not understanding the point of owning a house; yeah it comes with more responsibilities, phantom costs, etc, but there's a very obvious point to it over renting. We bought a townhouse for 195k and sold it for 245k 5 years later (and did it with no realtor so no fee). We can math out what rent would have cost versus the mortgage, how much we put into upgrades (not much), and the HOA fee, but at the end of the day we walked out with a fat proceeds check to put into our current house. Outside of an extreme scenario where we have to sell for less than we bought the house for we have that equity waiting for us and is a huge safety net.
My only regret is not buying a house sooner in life. Not for everyone and lots of people get themselves into trouble via buying when they're not ready to, but people glossing over how houses appreciate blows my freaking mind.
13:00 I feel wealthier already, I didn’t even have to recite the novel she has prepared.
I’ll just listen to the video every morning…
The sarcasm is spot on !
Thank you Lord Jesus for the gift of life and blessings to me and My family $14,120.47 weekly profit our lord Jesus have lifted up my Life!!!
Investing in crypto/forex is a good idea,
a good trading system would put you
through many days of success.
Investing $15,000 and received $174,000
Same, I met Mrs Anna Davis last
year for the first time at a conference in
Manchester, after then my family
changed for good. God bless Mrs Anna
YES!!! That's exactly her name (Mrs Anna ) so many people have
recommended highly about her and am
just starting with her 😊 from United States
Please who is Mrs Anna
Ramit’s face @ 13:06 - 13:34😂🤣😂
It really should be a meme
I totally relate to the parents leaving a house situation. I want to sell and my sister doesn’t. It’s not in a great neighborhood and hasn’t been updated since the 80’s. Such a financial burden. The money from the sale would benefit me greatly but not her so there’s no motivation to sell on her end. Meanwhile we have a shared savings account where we each put money in for repairs that could be better invested 🙄
I’ve read like 14-15 business, tax, investment, self help, etc. books. I can personally say that I am very happy that I bought & read your book. It was the 1st book that gave me an actual financial game plan VS hypothetical … minutiae 😊. I’m a nurse trying to do a product startup I invented to prevent kids from drowning. Been working on all aspects I had to learn since 5 years ago: design & prototyping, business, tax, investing, communication, sales, networking, marketing, etc. I now understand why successful people say that the 1st 1 million is the most difficult. It’s because before that threshold, financial momentum isn’t in your favor. How do I break the that threshold asap so I can get this damn product on store shelves? - The Dean
5:55 here I am just drinking my coffee and wind up getting called out to my face.
Also you got me.
Integrate your values and concerns into your eating habits is essential. Aim for balance and sustainability, rather than strict dietary rules. health and well-being are unique to you. Listen to your body and adjust your approach accordingly. Consider what matters to you and don't let anyone crush your dreams!
“I hate budgeting, use my CSP… which is a fancy name for a budget “
Right, I never understood why he says he doesn't budget or like budgets. Spending plan = budget.
The CSP is not an exhaustively detailed budget; that's what Ramit objects to. It's a higher level guideline that encourages accountability without getting lost in the weeds. Watch a few more videos.
@@rpguitar I've watched plenty of videos. It's still inconsistent. "Budgets are dumb, unless they're high level guidelines then they're ok".
@ a budget… can’t do a CSP without calculating fixed and variable cost.
Honestly that was a great template, it just looks more complicated than it is in a spreadsheet. Using an app simplifies these things a ton.
imagine living and having a career in New York, and then one day a lawyer calls you and says did you know your parents left you a home? Its in Montana"
No thank you!
Any financial strategy that depends on "manifestation" is not likely to be more useful than a plan (any actionable plan is better than none.)
If you don’t own a home, many people think you didn’t make it. But they don’t even own the home yet, they’re still paying huge mortgage on it.
This was Excellent. This 55 years young lady do not own home, njoy renting as I am able to pick up & go.....
This was such a great video Ramit! I thought you’d mock that second woman but your compassionate answer was really wise.
Ramit… you hate budgeting!! My heart 💔 I get what you’re saying though, it does feel like you’re on a tight rope all the time even when you’re not. I realised the other day that I’ve been “living in my spreadsheet”, I’m not ready to give it up yet but have simplified it loads so I can take a step back. It feels good 😊
Your account name 😂
i don't think living in the spreadsheet or the budgets or accounts is necessarily a bad thing. for me, i like viewing those things because it reminds me of the good choices i've made and it reminds me why it's all worth it.
and i personally like keeping track of what i spend because it helps me focus on what's important, and what i want to spend more or less on.
12:38 shady producers set Ramit up with this one. 😂
Yes. How will I leave 7 children one house. That’s what I often think.
One could pay the others and live there. Or they could sell it.
If the house is right for you, don't overthink it too much.
Yeah I got all the finance tips I need from your book and Netflix show. What I really wanna know is what your hair care routine is? Ramit’s looking fresh out here.
God that created everything, can make anything happen. Don’t think He can, know He can.
“I am the Lord, the God of all mankind. Is anything too hard for me?”
Jeremiah 32:27
“With man this is impossible, but with God all things are possible”
_Matthew 19:26
“The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him”
_Psalm 145: 18-19
“And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.”
_ John 14:13-17
“Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.”
_ Matthew 17:20-21.
"For I, the LORD your God, hold your right hand; it is I who say to you, 'Fear not, I am the one who helps you.”
_ Isaiah 41:13
Ask God to become successful.
I’m approaching retirement and have saved $650,000 outside my pension account. Given the long-term nature of pension investments, how can I optimize my retirement account for maximum growth? My goal is to retire with 2-3 million within 5 years.
I’d suggest you consider financial advisory. Working with a well-experienced advisor can save you the cost of any fiasco.
I totally agree; it's ideal for a newbie or near-retiree to consider advisory services in order to avoid mistakes. At first-hand experience since the 2020 pandemic crash to date, I've gained over $2.7M ROI after subsequent investments. IMO, nothing beats expertise.
@donhug Good gains! I basically have cash sitting duck in the bank, but with rising inflation, my savings seem threatened. I want my money to work for me even after retirement; how can I connect with your advisor/coach, if they mean the same thing?
Glen Howard Chester is the licensed advisor I use, he is a hot topic even among financial elitist in lower Manhattan with an aum of over 500m usd. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I looked him up and found his consulting page. I’ve got to say his credentials are truly impressive! I've scheduled a call to discuss further
found this channel 2 weeks ago have watched many videos a day and do not regret a single second
same thing, i've just been binging the most popular videos. i've learned so much, i feel like i already have all the common info he repeats but it's still nice to watch more videos and get a little extra wisdom
You are PREACHING in this video Ramit, love it and thank you!!
Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country, as very few are literate on the subject. Thanks to Caroline Suzan Olson, the lady you recommended.
I don’t think you can simply overlook a home as an investment. Yes, there are opportunity cost, transaction cost, and expenses you have to consider but in the right home and location, purchased at the right price, there is potential to get a very good return. On top of that, you have to consider utilizing the equity, especially if you have a very low interest rate on your mortgage and how that can help you with other investment opportunities. To someone who is about simplicity like yourself, perhaps this isn’t that appealing. But I don’t think you can generalize that owning a home isn’t worth it. I would say, like any investment, you need to be selective.
12:29 the way Ramit’s shoulders slumped 😩😂
I've used the same spreadsheet to budget and plan for over twenty years.
When he talked about tracking every dollar. I thought he was going to drop the every dollar app 😂
Everyone I know that uses the term “generational wealth” is really poor.
How are they using in the term?
I wouldn't say that is true
Are you saying financially poor? Or mental?
@@SPYgirl199812 They're using the term usually generically. Instead of going into the numbers, they start talking about generational wealth as a rationale behind an investing idea/strategy. I might be overgeneralizing. But I cringe now when people talk about generational wealth. I noticed that the richer people are, the less they worry about that because it's a given.
My bank app will break down my expenses by category automatically. It was really interesting to review.
Ramit you are a legend
Didnt manifest, we worked and invested…S&P. This be weird
Id never brag about mortgaging a home. My then-fiancé-now-wife and I bought in a nice area and we were lucky to get a 1450 mortgage with 20% down. Yes, we have decent equity in the home, but its just another means of diversifying. We have plenty of investments to do what we want as long as we still keep investing and saving at out 18-30% rate that we do...
I think the thing with houses is that it is a kind of forced savings.
Yes renting can be cheaper overall but most people aren't going to save the difference. They're going to spend and waste that money.
Homeowners are paying their mortgage and home repair but they money doesn't disappear. Most of it remains as equality so even if they spend everything else they still have something in the house.
That is why most studies show that homeowners have much higher net-worth than renters.
We roughly do 50/20/30 and I still use YNAB to budget my guilt free spending. Good for anyone else who doesn’t need to budget because they don’t live so close to the edge of wanting to spend everything they can without tracking, but that’s not me 😂
On the housing topic, I agree that owning a home isnt for everyone. There is a time and place for every housing situation. Renting is great for all the reasons you stated but owning is also fantastic for all the reasons you failed to mention. If the commentor stated they made a $320k profit from their home, i seriously doubt they care much about the transactional things like fees, commissions, "furniture" and all the other negligible things you mentioned. Subtract all that and you still have a HUGE deposit hitting your bank account which, if you kept your house for more than 2 years, is 100% free from capital gains tax. Owning a home and paying it off CAN be very lucrative. You can earn mailbox money on a bigger house that you owned when you had kids and now that income is paying your mortgage on a smaller home for you and your spouse. Now you're living rent free and will likely have not just one home to pass down to your kids, but two. Another thing that is failed to be mentioned is that when comparing investing 300k to buying a home for 300k is are you paying cash? If not, most people wont be getting a loan for 300k to go drop in the stock market. Thats a crazy gamble if you dont have the assets to back it up. At least with a house, theres a very limited chance the market will decrease amd your home loses value. If you get in a pinch, you can always sell and walk away with a little equity cash. Renting, you walk away with nothing. I dont think the issue for everyone is able to be compared in an apples to apples scenario. I believe there are many factors at play and that people who have careers and intend to stick with the same employer long term absolutely should consider buying. The pro's definitely outweigh the cons. Will there be expenses to owning? Sure! But the cost of renting is nearly 2x the mortgage note. Imagine paying $1500/mo to the LL when you can be paying $750 to the bank and investing the other $750 in the market. Omg, my water heater broke? Pull out $1200 and buy a new one. Move on. At the end of the year, provided you dont have any MAJOR expenses, you save idk.. a s-ton of money! Sure theres insurance and utilities and whatever but even when all these costs are added, there is still monetary value in owning over renting. The only value i see in renting is flexibility.
Not to mention....as a renter you are literally surrounded by the crush of humanity around you 24/7. I bought a nice house out in the countryside and have plenty of privacy. No loud neighbours to contend with. No loud city noises to deal with. Surrounded by nature is the best thing about our house.... You're not finding that in the city.
This is why a condo is a happy medium for those that want to own property, but don’t want to deal with a leaky roof, yard work, etc.
Yes, an HOA can be a pain, but with a well managed and realistic HOA, owning a condo (as long as you crunch the numbers and the numbers say that it makes sense to own instead of rent, of course!) may be a better choice.
I’ve owned my condo for 3.5 years and it’s still been cheaper to own for me…BUT I also got lucky with a great price and once in a lifetime interest rates (less than 3%), which made a difference.
If I was trying to make the decision now, I would rent instead of buy.
I had received (as the last living next of kin, and therefore sole heir to my father’s estate) a modest inheritance. However, given the fact that I am disabled (I am considered legally blind and am autistic) and on SSI at the time (and I still am, something that I’m very slowly trying to change, with plenty of obstacles to overcome), finding a place I could afford WITHOUT exhausting the inheritance (as it could be a crucial lifeline in my journey to maybe even getting off of SSI for good, albeit a big maybe, if I’m being honest) was really important. My probate attorney, a realtor-turned-friend, and I set our eyes on a manufactured home. It’s a VERY nice 850 square foot 2 bedroom, 1 bath single wide, perfect for me, as I live by myself. I turned the second bedroom into a sensory room for myself (the best place for me to be when I’m overwhelmed, overstimulated, and either on the verge, during, or after an autistic meltdown. The best part is that it’s mine . . . The home, that is. The land, not so much, as it’s in a manufactured home park. However, this isn’t THAT big of a deal. Yes, the space rent will most likely go up every year. However, my goal is to eventually get myself off of SSI, and even IF I don’t succeed in that regard, the special needs trust - which would appreciate in value VERY SLOWLY over time - and my SSI could sustain me. Nevertheless, fingers crossed that someday I might not, despite my disabilities, need the SSI and can focus on thriving rather than just surviving. I know, however, that buying a house would have been the financial equivalent to shooting my own foot. Exhausting that inheritance would have left no financial cushion, no lifeline, if the unexpected happened. And that was an expense I could absolutely not afford to risk leaving to chance.
In other words, stability was more important to me than profitability, autonomy (yes, there are rules governing mobile home ownership as well, not entirely different from HOA’s to a limited sense, I suspect), and full ownership.
@@AceAspie11.2.24 agreed, as a fellow neurodivergent person (AuDHD).
That was a big part of it for me as well, since I didn’t know how much longer I’d be able to continue working, which is why I’m voluntarily paying PMI right now in order to take advantage of the market and interest rates back in late 2020.
I was just lucky that both my need for autonomy and solid financial decisions were met in my situation.
I’m also glad that you’re in a situation that works for you. 🙂
I wish I never bought a house. It's nothing but headaches and makes it difficult to move. Being poor limits your choices.
Another hilarious and brilliant clip by Ramit. Dude is a beast.
I actually like owning a house. I love doing repairs myself since I am in construction. But to the guy that said he made 300k from his house, news flash, you haven't made a dime until you sell that house. Owning a home is a liability. So far I have only spent money on my house. Yes, I have a lot of equity, but It has yet to make me any money as I do not plan on selling this house.
Ask God to become successful.
“I am the Lord, the God of all mankind. Is anything too hard for me?”
Jeremiah 32:27
“With man this is impossible, but with God all things are possible”
_Matthew 19:26
“And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.”
_ John 14:13-17
“Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.”
_ Matthew 17:20-21.
“The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him”
_Psalm 145: 18-19
God that created everything, can make anything happen. Don’t think He can, know He can.
I haven't lived anywhere near my family lives in decades. I would not want to be left a house that I would then be in charge of selling. I wouldn't uproot just for a house.
I love renters they help with cash flow,tax deductions,Principal reduction and 2-3 percent capital appreciation 😊
I am curious how this applies to independent contractors like musicians. Typically we are advised to save more and track everything business expense wise. Could you do a video on this subject matter range?
Ramit, I recently was introduced to your channel and really enjoy your channel. My job offers an ESPP plan which I take advantage of. I'd love to hear your thoughts on how to handle these types of funds. What I currently do is save it and don't include it in my conscience spending plan. Any advice on this would be very much appreciated.
My favorite take away is “live outside the spreadsheet”.
13:00 was actually incredible
"I've been doing this for 20 years and I've never heard the phrase 'mirror work'" 🤣
On the homeowning vs renting topic (especially the Boomer+ comment on buying a home at $180K that is now worth $500K), why does no one ever talk abut affording the increased property taxes and insurance costs on that half million dollar home. That person is probably paying as much on those two items as the original mortgage when he first bought. Not to mention, any repair costs remain at market rate. You're not paying the plumber today like you could in 1998 when something breaks.
Ramit, I wonder what do you think of buying houses and multiple properties to become that landlord as a business. Is it profitable? I’m 22 with a savings rate of almost 50% so I plan to have enough to realistically retire by 40-45, then start buying rentals. Maybe I’ll think of some other business, but I don’t want to retire and do nothing.
Haha I'm just gunna start saying I'm skinny, maybe it'll just happen. Wait. Nevermind. Cancer. Don't want that. 😳
Yes, you have to get the exact wording right. Who knows what happens otherwise.
@BelleDividends is it like making a wish with a Genie or a sea witch? 🤣
I think the word budget is misused & totally misunderstood. Whether you budget by writing it down or mentally, you decide how much you’re going to spend on your finance areas-hence budgeting
Ask God to become successful.
“I am the Lord, the God of all mankind. Is anything too hard for me?”
Jeremiah 32:27
“With man this is impossible, but with God all things are possible”
_Matthew 19:26
“And whatever you ask in My name, that I will do, that the Father may be glorified in the Son. If you ask anything in My name, I will do it. “If you love Me, keep My commandments.”
_ John 14:13-17
“Truly I tell you, if you have faith as small as a mustard seed, you can say to this mountain, 'Move from here to there,' and it will move. Nothing will be impossible for you.”
_ Matthew 17:20-21.
“The Lord is near to all who call on him, to all who call on him in truth. He fulfills the desires of those who fear him; he hears their cry and saves them. "He will hear and help us if we worship and serve Him with a Holy awe of Him”
_Psalm 145: 18-19
God that created everything, can make anything happen. Don’t think He can, know He can.
Thank you for emphasizing structural reform. Private equity firms have created a dysfunctional structure.
Don’t want to rent and never have. I just hate moving and love making my house a home
Watching from Greece, a bit different situation here on housing as available houses are scarse and with few floors. This way their value is high in cities but the rent skyrockets so usually the mortgage payments are of same level or even a bit less than the same realty in rent. (Maybe also Airbnbs are to blame). Also landlords are mostly of the bad kind with mentallity like: "I dont have much money, you pay what you 'broke' (meaning maintenance costs!).
Funfact: the "buy your house for you and your kids" logic was strong here too. Also, most parents will give for inheritance one house to two or more kids so it is typical now that we millenials have split ownership on such a house and nobody can actually use it or sell it rendering them the most useless kind of investment ever (and reason for intrafamily fights). Many thanks from Athens, keep up the good content!
How do you track your monthly percent targets in a CSP without tracking costs or a budget? 🤔 How do I get those percentages in actuals to compare to my CSP?
Ramit face when that girl say I am rich, I am rich 😂
I love nearly everything Ramit talks about except budgeting. My wife and I have money taken out of my paycheck when I get paid that goes to our retirement accounts. We also set aside money for savings. The rest is for us to spend. However, unless we track our expenses, we don't know how much money we have left. We can live a rich life while using a budget, Ramit! Stop spouting that a budget is bad. Geez.
Don’t buy life insurance for kids
For sure, the second lady is rich with words but I'm not so convinced about her being rich with money after all of that lol. Ramit's reaction makes me laugh but I appreciate the positives he took from it. As for buying a house, it is an emotional expenditure and many people equate their emotions with logic like the comments show. I want to buy a house, not because its an investment, or to leave with my children but because its a dream of mine due to childhood feelings of insecurity because I didn't grow up in one (grew up in a rented apartment with my parents and siblings).
The argument about having a house to leave your kids is especially funny to me. Both of my parents own houses and... I don't want either one of them. Yeah, they could be sold, but assuming nothing terrible happens, my parents shouldn't be going anywhere until I'm retired or almost retired anyways. By that time in my life, even selling a house isn't going to make a meaningful difference in my life (especially after settling whatever debts are on their estates and splitting it with my brother). It's a good thought, but in practice I think most people are probably in a similar situation.
I don't have a house to build wealth, I have a house because by the time I retire I NEED to have a paid for place to live. I won't be able to make rent payments when I'm 80
I own a home too, but please understand after your mortgage is paid off you still need to pay for property taxes, insurance, and maintenance. Often these things will cost more than rent.
When you are retired you’ll still pay property tax, home owners insurance, and maintenance. So you’re still paying. These are sensitive to inflation, unlike your mortgage. I think not being beholden to a landlord and not having to move when you’re old because the landlord decides to sell is a big positive. I can’t imagine being 80 and having my landlord to me to move out.
I think this might be a bot. There’s no way someone is watching a personal finance channel who doesn’t understand what wealth and housing cost are.
@@rb2kTubeyou’d be surprised 😂
Genuine question - why won’t you be able to pay rent when you’re 80? Are you not planning to have retirement funds?