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Great video as always @Humphrey Yang! It would be interesting to see the quintiles broken out by age range. For example, $600k net worth for a 20 year old would be considered vastly more financially well off when compared to a 65 year old with the same $600k, yet based on the definition in this video they both would be labeled as upper class.
That statistic Is BS its the government trying to saying you, you are all right, there is some people who do worst than you and reality. Most of society is lower class and some few are middleclass. Fewer yet upper-class. In italy Lower middle-class is when person has 8 year worth of income as net worth on median salary. And even that is not realy accurate. To divide financial class to brackets is deceiving. From middleclass people is expected some resistance to crisis. And also upperclass is not just upperclass there are people who have 5 million in assets and are thouse who have fewhundread billion and thouse who are between.
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
“Rebecca Nassar Dunne” has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
I found her page by searching for her entire name online. After that, I emailed her and we set up a meeting so we could talk; I'm currently waiting on her response.
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.
Impressive insights! For beginners like me, managing and staying updated can be overwhelming. Are you an experienced investor or do you have a strategic approach for staying informed?
People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $275k to around $750k.
That's quite remarkable! I'm genuinely interested in benefiting from the guidance of such experienced advisors, especially considering the current state of my struggling portfolio. May I know the name of the advisor who has been assisting you in navigating these financial challenges?
"Sophia Maurine Lanting" serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
I grew up extremely poor. I have an upper class net worth but a lower to middle class salary. This is called the power of investing early and living a frugal lifestyle.
The upper class net worth is really lower upper class. Since if you are in the upper class earning buckets you can get there in a few years. The solidly upper class bucket is probably around 2-4 Mil.
Same here. Upper class net worth (and no I'm not house rich even though it's paid off) with a middle class salary. I don't consider myself upper class. I live a lower middle class lifestyle.
@@sorka95032 Your net worth is what determines your class not salaray. Mark Zuckerberg famously made 0 salary for a long time, Is Mark Zuckerberg not upper class?
There are a lot of ways to judge wealth. When you get older, there's one parameter that trumps everything. And that is your health. Good health should be your goal.
I got lucky; around my 40th a gastroenterologist ordered off all animal food and it’s been 17 years of positive living. My husband is very much omni, but he still turned the house vegetarian, which blew my mind. But he watched the majority of his family fare very poorly with heart disease and then watched his father die of prostate cancer. That said dementia is at the forefront for me (both grandmothers and currently my mom), so over a decade ago I convinced my husband for us to get our estates in order legally and to take out insurance for long term care (life insurance too). Good health is paramount, but genetics gets in the way sometimes. Investing is awesome, but the worst thing a successful investor can do is not have their affairs in order and letting the government take a chunk of it through probate, especially if you have dependents.
Went from lower middle class to upper class over a span of 25 years. All due to focus, discipline and, yes, pure luck being born in the U.S. Thanks for the reminder that upward mobility is possible in our great country.
Honestly, don't get so focused on the externals. You can only control your own habits and financial destiny. Keep doing the right thing, and just consider bad government as another required expense. That just means you have to work even harder in spite of that. It's not fair, but then again, life isn't fair :). You can make it entirely on your own, regardless of what is going on in politics!
@@KalebSDay Not really. A lot of people (especially men) that retire die. I am in my early 50s and have been paying into social security since I was 16. I also have a 401K with a very nice amount in it plus other things. I will not retire rich, but should not have any issues with money as I currently make over 160k a year and live on a 80k year lifestyle. My wife even makes more -- a lot more.
@@Lex-Rexyou are correct. One issue of successful retirement is good health. Health is wealth. The other issues are taxes, retirement savings, and spending
I’m in my mid 40s. Single, no children. I was fortunate to enter the work force with an engineering degree and no debt, thanks to my parents. I own a modest house (with a mortgage) and a modest car I paid cash for when it was new after the previous one began to fall a part. I don’t live in high cost areas either like NY or coastal CA. My net worth is around $1M which is mostly in retirement accounts. I don’t feel rich or like a millionaire but do feel fortunate and thankful. I also feel if this channel (and others like it) were around 20 years ago, I would be a lot, lot wealthier. No regrets though.
@@username16129 i wish I did a net worth statement starting out. It would have changed the lens by which I viewed financial decisions. I also did some reading of finance books, just not enough and not soon enough.
I agree, I would have put money in an index fund much earlier than leaving it in a savings account. I feel like a fool adding more years to my working life.
According to this video my wife and I are “upper” class based on net worth. Neither of us received any significant inheritance. I grew up very poor, raised on welfare and food stamps. But we both worked hard through college and were able to get rewarding careers. We live modestly, with zero debt, and are maximizing our 401k investments every year. Our goal of a comfortable retirement is looking very possible!
I am in the same boat. I grew up poor and dropped out of college. We worked hard and saved. Now we are comfortable and our net worth is over $3 milllion. We still have another 17 years to work and save for retirement. We live below our means and are always looking for new ways to save. Many of my friends retired early and live off of rental income or investments. Unfortunately we are not that lucky.
Same. We both grew up poor. I ate the real government cheese (grilled cheese) after my great grandmother scraped off the mold. It came in a rectangle unsliced. We both worked multiple jobs. At one time I was working at a marina, fast food restaurant, bookstore and had a side hustle washing boats. Your money can go far if you manage it. You can buy a dozen eggs then boil them then have an egg and fruit for lunch when you're young and you can also learn about Ramen noodles and discounted bread stores etc. You can squeeze those dollars with coupons, roommates and eating with relatives or friends. We both worked and paid for our own college. It took me significantly longer to get my degree, but I did it without a student loan. My wife is now a teacher and I'm a programmer. We have two boys that eat like horses, but we manage to save and spend wisely and do without sometimes to save so we have a high net worth on a middle/lower middle class salary. Like most Americans we were minimum wage workers but didn't stay their long. Anyone can achieve the American dream. They just have to make goals, not buy a new car every three years and prioritize their needs over their wants.
Another one here in 'upper class'. Grew up poor, community college dropout. Started a career at 30 years old and just kept increasing income, keeping lifestyle in check and dumping money into 401k and other investments.
The quality of the lifestyle is an issue. You must have a lot of available wealth to maintain an upper class or close lifestyle and not work. And conversely. I live in a pretty affluent HOA in Palm Beach County and we all do a lot of international travel, its part of the lifestyle. There are code words that denote the really rich. When they talk about tours they say Tauck which is the most expensive tour operator and when they talk about cruises its always suites on regular cruise lines or overpriced luxury cruise lines . We dont do Tauck or do Suites. Tours, I do a lot on my own and set up private tours at the destination and save a ton. Cruises, We are locked into RCCL/Celebrity and are top tier in both and get a lot of perks. There is no belter ships afloat than the Edge class ships. Period. I bought 100 shares of RCCL to get the owners discount for each cruise. I bought it last year and it was not cheap. I have more than doubled my investment in one year. I can fund many cruises if I choose to cash this in and give up the discount but I wont.
I'm a retired welder age 62..I bought a few houses paid them off. I was fortunate enough to inherit the house I grew up in and just recently sold it. No debt. Everything together puts me over 2mm. I try not to be too spendy and live a low key life.
Some days I feel like I need to be doing better, but videos like this help to remind me of how fortunate I am. I am 23 and just celebrated my 1 year work anniversary and after tallying up the OT I put in, I earned $94k as a civil engineer. My net worth is just above 0 as I work on out pacing my student loans, but with an about 60% savings rate I'm hoping to make it to the top. Thanks Humphrey!
Humphrey, that was refreshing. I tend to get lost in the pursuit of financial success, the obsession to earn more and be financially "free". To know that earning +$50/day puts you in the top 20% across the globe - it makes you realise how good we have it and to take a pause occasionally and practise gratitude. I want to create a balance where hunger and drive don't diminish - but also be reflective and grateful enough, that my financial pursuits aren't crippling. Appreciate the breakdown, all the best!
How good we have it? In the US if you make $50 a day you will most likely starve or freeze to death. Now if you are able to live in a poor country where $50 a day is rich and still pull US income of $50 a day you would be able to live like a king due to very low cost of living.
@@ericharold4074 - It's true that geographic location partly defines how well off a person is at a given level of absolute income. For example in many poorer parts of the world, US dollars are in high demand. If you have actual US dollars and a way to trade them on the black market, you can probably get a lot more with your dollars than you can in a high-cost-of-living location like San Francisco or New York City. However, while an actual dollar may go farther in a poor country, finding ways to earn an actual dollar may be much harder. In locations where costs of living are high, job opportunities may be abundant and salaries are often high to match, at least for those with marketable skills. That's why people with high levels of education tend to migrate to big cities with high costs, where they find many more ways to monetize their skills than they might find in say the rural parts of Afghanistan. And when people migrate out of states like California, they tend to create the same kinds of high-cost enclaves wherever they go. But another point that I think supports your premise is social expectation. If you live in the USA, you're expected to have a certain level of material possessions. You have to keep up with people around you. In contrast, if you are in a poor country, there's no shame in being poor. You're surrounded by other people who make do with what they have, and you can learn those life skills from them. Whereas in the USA most people have long forgotten how to do much of anything for themselves, and everything costs money. We don't have good options for being poor in the USA, whereas in a poor country being poor is the main option.
But we have people making that and more sleeping in tents , cars and under bridges, dying from exposure, no healthcare and going to food banks n shelters. But I guess it could be worse. But what's worse than freezing 🥶 the death in a cardboard box.
This actually makes me feel pretty good about myself. I was 16 when my son was born, so it was hard for me to juggle work, school, and fatherhood. I had to very slowly work my way through college. At 29 years old, I bought a house. At 30 years old I graduated college. Now I'm 31 years old. The only debt I have is my house. And my net worth is right around $70,000. At my current rate, I should be hitting the $100k mark before I turn 33.
37 years old, 1.1M net worth, just got huge raises last few years and will make over $400k this year as a pilot. Grew up in poverty but studied hard on finances and ive saved over half my income for the last 7 years.
32 years old, 250k net worth. Started my saving/investing journey late only about 3 years ago wish I started in my early 20s, still a long way to go but never too late to start!
@@humphreyone to consider but maybe you should make a video for the late bloomers because as I’m sure you’re aware there a majority of millennials still don’t know any of this and now have to play catch up. These types of videos are a gem for those around their mid twenty’s and younger as they’ve got a lot of time, potential and prospects but for those in their early thirties and beyond this can be a discouraging reality check. Just some food for thought
Just turned 41. Been investing for 15 years. Started a business 12 years ago, and starting buying rental properties 3 years ago. Should hit $2m next year.
I love how he shows the global scale to REALLY put things in perspective for us. If you’re making $50 or more per day then you’re upper class from a global perspective.
Literally don’t care about that perspective as I want to retire. I don’t want to be working myself to death and broke in the US at 70 just bc I can work at Walmart make $50 a day and be considered globally upper class. Joke of a metric.
My husband and I are 69..retired at age 62. I was an RN, he worked in security. We have combined IRA's and savings totally $650,000.. currently invested in a 6% FHLB bond. Our home is assessed at $ 430,000. And we are debt free. We were fortunate..we eached worked for 2 employers providing Fully paid pension plans!! ..so we live on our social security checks and 4 pensions..we have always lived within our means..we probably will never need to draw on our investments..those will be left for specific charities and student scholarships..
Splurge on yourselves abit. My wife died 2 weeks before our 39th anniversary. I had been retired 5 years. She had been disabled when we were in our late 20s. Our assests will go to our son but if I didn't have him, I'd be spending the money on myself. Most charities and schools waste most money on benefits for those running them. I wish you long and happy lives. Good Luck, Rick
My wife and I achieved middle class recently. Two paid off 4-year college degrees (engineer & teacher), two used fun Hondas paid in cash, a new home, and after a job change, quintupled my modest retirement savings. Have yet to turn 30. Invested heavily into the tools, education and careers that make us unique and useful. Watched a lot of friends hit other goals and live more lavishly for a long time, but now the momentum has picked up and it feels like we are on a rocket ship. Even if we crash, I still feel confident we have what it takes to keep going. It took, and still takes, a lot of discipline and patience! Thank you for the perspectives, tools and insights that make us grateful and optimistic for the future.
My mom was making 30k or less her whole life and we grew up on food stamps. I'm starting my first industry job at 70k and I've been raised to always try to save money where I can by making my own food, renting cheaper, etc. Never thought I'd be able to buy a house for myself and my mom for a permanent home but its possible now even though the market is still expensive.
A really big problem is that this does not brake people down into age groups. As you age in most cases you will climb categories. So the lowest will be mostly young people and the high end will be mostly old people. This does not help people know how they are doing with their age category peers.
To say that I'm both surprised and happy that I'm considered upper-class is an understatement. I came a long way to be here. Lots of hurts but I'm here and I'm fighting to retire comfortably so I don't become a burden to my daughter.
From a daughter's point of view. The greatest gift my parents gave me was to move to a continuing care retirement community (CCRC). They preplanned their funerals and converted all their assets into stocks, bonds and cash prior to moving to the CCRC. Thankfully, they both lived long, healthy lives until they passed after brief illnesses. Their planning for their inevitable decline and deaths made dealing with their estate relatively easy. It was a great gift to me.
it's kind of scary because even with a million plus in retirement, you still need a tight budget to have it last, especially if inflation outpaces interest/dividend earnings.
Little tip for anyone reading. As a 28 year old, apparently upper class with only a highschool diploma, you absolutely DO NOT need a college degree these days to be successful.
The military and then college gave me the confidence I needed to make it. The push was crappy pay at Home Depot and Dicks sporting Goods that's what makes you go for it.
@inthewoods9470 you could've skipped the college part. I did military then a year and a half of college, then dropped out. Still have a solid 2 years of gi bill im just never going to use lmao.
@SpynCycle57 that's dumb. Find better companies. I just interviewed around 7 people for a dev position. I honestly didn't even think to look at their school section.
Based off of net worth, your income does not need to meet those numbers. Real estate appreciation and investing hits net worth even with modest income. Great content!
@@MB-rr1fb oh my. One year it went down? Oh man, I better just put it all in to the bank and have zero risk. Over time, but and hold real estate is what creates wealth. Anyone can take one bad year of any investment and say it’s not good. This is a very small outlook on investing and bodes a poor mindset to have
yes, i've recently been bumped up a bracket due to my homes appreciation. Those of us that bought 4+ years ago and have the 3% or less loans are doing pretty well right now. My stock investments are going gangbusters right now, but I took a HELOC and am looking to use that to leverage into a rental property.
My net worth is over a million and I do not feel rich . I feel comfortable. I still shop bargains ,no debt,no mortgage, but I do buy nice vehicles and pay cash .
Most people's "million" is tied up in their home equity and their 401K, neither of which is liquid enough to use for cash purchases. So yeah, it will feel like you don't even have that money.
$50k net worth and 25 years old. Basically 100% of that is in retirement accounts. No debt, no assets. I know it’ll start to really pick up later in life, but damn it takes a while to get that ball rolling.
Yeah, it really does. I suggest making small goals along the way to keep yourself encouraged, 100k net worth, 100k invested.. Just make sure you can cover expenses in case of an emergency and you'll be golden. Might take you longer than you expect. Since housing is 9-10x more expensive relative to modern salary. But you can still pull way ahead with careful planning. Best of luck.
I am 74, wife 71, made 96000 until 62 yrs, then secondary job 60000 per yr, wife made 70,000 when I made 96000. When i made 60,000 per yr she made 94000 per yr. We accumulate 1,029,000 in retiement funds and had 1,3 million net worth. Now 6 yrs retired, still have net worth1.2 million. We are living comfortably on 108,000 per yr.combined. -in 30 % tax bracket. Have 80,000 mortgage at 2% and making 5% on our investments. Doing well, but not living high off the hog.
I am considered upper middle class due to net worth, but not due to annual income. Real estate income/assets are what got me there. I bought my first property at 23, and recently sold it for over 100k profit (I am in my early 30's). Having good credit in your early 20's really helps to set you up for life. I would recommend student or younger people get a student credit and maintain your credit over the course of 4-5 years your limits will increase (don't use it), keep your expenses low and you'll be in a good position.
One overlooked element for growing net worth is to remain employed with a stable income for an extended period of time. Job loss and lack of relevant skills will undercut any financial goals for anyone.
Oof, that was a wake up call. I'm Upper Middle class by income, but Lower class by net worth (I have a negative net worth right now). I 100% agree with your point that many "lower class" people get stuck in a cycle of debt, which seems to characterize our family since I was little. Working my way up though. My net worth has climbed over the last couple years, so once I pay off a good chunk of debt I can make it to solid middle class after the debt is paid down. Age 27 for context.
Very similar here, near the top of upper middle class income, but at the bottom of that group by networth. Sold my home just before 2020 kicked off. Haven't been able to buy anything usable since. 38.
Been an engineer since I graduated from A&M 7 years ago (29 years old now). Firmly in the upper middle class, I own a modest home in rural Texas (almost paid off), and drive a 2006 Honda Civic. Living below your means and investing in assets is so important for building wealth.
31 here.. Australian couple.. house nearly paid off.. networth about 1 million with retirement accounts.. Household income 170000$ Truck driver and stay at home mom on income insurance (cancer) Being frugal in your 20s can bring you far… This is all in Australian $$
41 years old and I'm considered upper middle class. Just passed $1.5 mil net worth and I still feel lower middle class. I've been investing for 20 years now as I started in college. Really trying to set myself up for retiring early. Thank you for sharing Mr. Yang.
1.5 million worth of real estate can rent for 8k net profit per month with no mortgage and in cash no taxes. How do you blow 8k a month and feel lower middle class?
@@lineage13 It's my net worth, not my portfolio. A majority of the money is in tax deferred accounts meaning I don't have access to it until I hit 59.5. I'll continue to be frugal and enjoy life until I have a big enough taxable account to retire early.
Very good video, where you touch upon so many of the salient points that go into determining net worth. A video that correlates net worth by age would demonstrate how time gradually elevates those who are reasonably smart with their money into the Middle, Upper Middle, and Upper class categories. At age 35, my wife and I were lower middle by net worth and middle class by income. 20 years later and we're in the top category by both classifications. Something worth noting is a lot of people who are truly "Middle Class" at heart may have amassed enough wealth, or net worth, to be lumped into the "Upper" class, but they do not feel that way and do not act that way. That's how they got there, by being humble and grateful. That's also how you stay there.
Hi there, started school at age 5 wearing a borrowed pair of shoes. Most of my clothes came from thrift shops for many years. Finished college. Became an officer in the Armed Forces where I did well, but not exceptional. Years away from home. Wounded, so I literally shed blood for what I've got. Retired as a senior officer. Now UMC. America is a great country.
I am 61. I guess we are upper class. I never thought of myself as wealthy. The only reason is we bought a house in NYC in 1990 and it has appreciated so much. Weird.
According to this, I am well into the upper class but I certainly don't act like it. I walk everywhere, take public transportation, eat 50 cent tacos in Mexico, and pretty much live the same way I did in my early twenties now that I'm in my mid-to-late thirties. I own a lot of income-producing real estate so it's income covers my living expenses several times over. I tend to do the barbell approach, either act really poor 80% of the time or the other 20% of the time to do lavish things. I'm not a fan of middle ground.
Yes, one thing that tends to happen with a lot of people as you build wealth, the more wealth you accumulate, the more frugal you become with certain habits because you're so much more financially conscious. You tend to prioritize and splurge on things that are much more important to you, but you also see the value of money.... that extra 200k on my fav car would have made a great downpayment on an investment property or could have gotten me 10% return on a conservative portfolio!
Just looking over at the analysis, few things are missing. One is that everything is relative to geography in the states, 100k a year in Iowa could go fairly far, in NYC you wouldn’t be able to rent an appointment without having few roommates. Another thing to note, investing 100 dollars a month might get you to 400k retirement in 50 years but it will not have the same buying power as today. The prices (historically) go up over the same time period. So yes, you will have 400k but it might be more 12:48 similar to having 100k in savings today. Still much better than no savings but not going to get you the upper class retirement :).
After 2008, I changed course. Sold out city living, bought 5 acres in the mountains, all very modest. I have a big garden, a food forest, medicinal plants, edibles. No debt, low income. I live modestly, I am not a Consumer Unit. So I save $300 per month, but will eventually need transportation. When I buy something, it tends to kill an expense, like when I added solar. My big garden worked for me during inflation, called my Free Food Diet, and I am healthy, few complaints and garden herbs and fine for that. I tightened my budget and still stick with it. I preserve my garden for all year. I identify with the old janitor guy cutting his own wood, although I was a skilled white collar worker.
A couple of years ago, I used to be over $100K in debt; now I'm debt free with $110K in savings, $120K in income. Debt-free feels amazing. Super glad to make it to middle class at 32.
Good for you! Yes it does feel good to be debt free. I grew up poor. After meeting hubby who is a frugal saver it is nice to retire and not worry about debt. WTG!!!
At age 26, I am currently in upper middle class for income and networth, and moving towards the upper class income soon. I was lucky to get hooked on finances videos during college and started my Roth IRA at 18 and started maxing my 401k as soon as I got my first job. Looks like my major in Public Policy worked just fine
hopefully you can continue to max your retirement accounts every year. You will likely be able to retire by 50 if not sooner. I already have nearly $440K in my 401K after only maxing it for only 10 years. I hope to work another 10 or so years and then retire early.
I wish we would have Roth IRA oder 401k here in germany too bit there is not. I do not feel a retirement support here so everything will be taxed which make it a little bit hard. I hope an alternative will come here soon. Nice to hear that it is running for you 👌🏻👍🏻
That is awesome! I wish I was that aware at 18. I didn’t start a ROTH until I paid off my house a few months ago lol. I find that many late teens to young adults don’t understand the importance of tax leveraged accounts and investing in general; this was my case.
Unfortunately, I feel like many young individuals feel hopeless in todays environment with raising mortgage rates, inflation, and the lack of knowledge of where to start. I believe that if at 18 small little steps of just setting aside money in a Roth IRA could be the difference of financial freedom in the future.
This is a great perspective check. I’m surprised someone with a home paid off and mostly debt free would fall so high (upper middle or upper class). I guess people don’t tend to think they’re rich but many regular families are if they’ve simply prioritized good saving and paying debt even if their income is middle class they could be upper class.
You read my mind Michael! My pay is not middle upper class per say, but my networth is middle upper. They always say.. it's not what you make.. it's what you save!
No sociologists define the classes by income quintiles like this video does. The top 1% of incomes is a better rough approximation of the upper class, and the top 10-15% is a decent measure for the upper middle class. Upper middle class is someone with at least a $2 million net worth by retirement. Age is important here, because a 40 year old with at least a $500k net worth is also likely in the upper middle class. For a 30 year old, net worth is hardly a measure of class at all since a 30 year old doctor with a negative net worth (student debt) and a $300k salary is clearly living an upper middle class lifestyle while being in the early stages of growing their net worth. The upper class is more like someone who has saved $10+ million by retirement (in 2023 dollars)
I think about how poor my family was growing up. Sometimes we didn't have electricity. Sometimes, we didn't have food. Now, based on this video, I'm upper middle class. No college. I'm no entrepreneur. Just worked my hardest at whichever his job I had and kept going for better and better jobs. The American dream is real.
I love this. Single mom, never made more than $60 at my peak, still able to retire early and comfortably. Like you, I just kept my head down, lived modestly, and worked hard.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life too. 🙏🙏🙏
Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
I am 80 yrs old and have a 7 figure net worth, with no debts and a home value of about $140,000. I invested in stocks and mutual funds over my working career. I still buy stocks in retirement.
Wow! This places things into perspective and makes me more appreciative of where I'm at in life. I'm an accountant in between upper middle class and upper top 20%. Growing up in poverty sometimes makes a person feel like they constantly have to make more and acquire more. Gotta just learn to enjoy life.
I struggle with this. Grew up with a single mom raising 5 kids. Some birthdays had no presents. I'm now 38 and according to this I'm upper class. Sure don't feel like it. I've been working 60hr weeks and investing for 20 years and can't get enough. I'm shopping for a new car and am looking at 3 year old Honda pilots when I can easily afford Mercedes. Maybe I should spoil the wife with that trip to Florida and a new suv 😂
@@mattvan5100 I'll make it easy for you and vote for your wife to get a new SUV and trip lol. Sounds like you've been on the right track. Ok to splurge every now and again. You don't want to get old and can't enjoy the fruits of your labor. Enjoy some along the way, if you can.
@@mattvan5100 money is a tool. dont forget to reassess how much you need, how much you have, then maybe you can start to loosen the ourse strings if youre set
Bit late but as a 34 year old who was born in abject poverty(we're talking picking bugs out of our food cause we couldn't afford new food kind of poverty) I'm pretty proud to say I'm at that lower middle class position. I just need to go back to school finish my degree and get my way to that middle class position next.
@@humphreythe video started off slow in view count but has taken off to be your 7th most watched. I watch them all but updating this 3 times a year would pull in equal numbers 😎
One big problem with using net worth alone as a measure of wealth is that a young doctor or lawyer that's making a ton of money but hasn't yet paid off their student debt counts as "lower class". On the flip side, someone nearing retirement who's narrowly in the top quintile isn't gonna be able to afford a particularly luxurious lifestyle.
I would fit myself in the middle class but if I were rich I still live and dress like the middle class. My dad raised me not to brag your wealth. This is a great break down.
I forget how much debt folks carry. Retired (59) but my net worth puts me and my wife way above the standard of upper class. In no way would I ever put myself in that class. I wouldn't even include my house (Over 500K) because I wouldn't sell it just to have to live somewhere else. Senior Golfer.
Thanks for this video -- so interesting. Because I came from Depression Era parents, the idea of spending money beyond my budget of necessities doesn't occur to me that much. We were definitely lower middle class growing up, but my parents still managed to buy a house and we had rental property because of my dad's VA benefits -- no money down. But I wore hand-me-downs and cheap clothes from KMart. In the last 10 years with no kids at home, when I've made more money than ever before, I've gotten real pleasure out of seeing how little money I can use between paychecks. And I don't need much.
My wife and I are both 1st generation born in the US. We worked hard, came out of school about a decade ago and went from being at the bottom of the lowest quintile with a very negative net worth to the upper half of the top quintile in that time frame. This was done through hard work, living frugally, having goals, delaying pleasure, and, exactly as you said, investing in a home, retirement accounts, and brokerage accounts.
As I get older it seems to me that cash flow trumps net worth. I am always on the hunt for income, my net worth fluctuates greatly. Rental real estate, option selling and self-employment are my pursuits.
What’s crazy to me is how fast wealth can be built in just 3-5 years with good saving/spending habits and above average salaries. We are a DINK family and have been working full-time since 2019. Starting out we were earning a combined $125k and this year we will be just over $200k. We spend $40-55k per year and also donate around 10% after-tax. Current NW at ages 26 and 28 is $500k
I am, by your definitions in the top 20%. This in spite of spending 20 years, 7 months and 29 days before retiring as an Army Officer. This in spite of my living the first years of Army life far below the average College graduate.Three reasons: First, you mentioned the compounding effect. I started a systematic investment plan-pre IRA days-and invested for 15 years then I stopped and switched my investment into paying off debt-mortgage, auto loans. Then I was able to retire debt free so that except for utilities, insurance and other necessities, all my pensions go into paying off credit card debt in full monthly on a rewards card and some into mutual funds, none of which I draw from.
With the high home prices in California, I think this skews the numbers of net worth. I live in CA where my primary house is currently valued at 1.1M. I bought it 40 years ago for 95K. But instead of net worth, I measure my real net worth by cash flow that I can use for everyday living. For instance dividend paying stocks. My house does not produce any cash, but it does save me by not making any mortgages.
By the common networth definition, everyone that's a home owner in Silicon valley/San fran or SoCal is a millionaire.... which a million doesn't even mean that much nowadays, but even those with 2m homes paid off, they may not have the cashflow to live a luxurious life unless they sell their primary residence. It's complicated!
This video was so powerful! I’ve been following your channel for a while (always a lot of great info/content) but this is hands down my favorite video. Great job!
at nearly 14 yrs old, dad said go out there and ask that farmer if he needs help putting up hay...we worked for him for two days...got a check for about $14...dad said, save half and spend the other half. been doing that for a long time... word spread and every farmer wanted us...made good money for being a kid. great video...nicely done and well documented. thumbs up and subscribe.
I’m 21 and just broke into the upper class with a net worth toward $700k. I’m honestly shocked at it, and didn’t really know I was anywhere near it. Thanks for the informative video
You've had help. Unless you worked as a child, someone has helped you. Very fortunate but give them the credit. Or, you've made $700k in the 3 years since you've left high school, which is better than most professional athletes, so whatever you're doing, keep it up and help others along the way.
Watching this channel, or a lot of financially oriented podcasts/youtube channels/etc, the common theme seems to be that everyone should be focused on amassing as much wealth as possible by the time they retire, or even later in life. I understand that setting yourself up for a comfortable and secure future is important, but is it really best to forgo most frivolous expenditures until you are beyond the age where you could have really enjoyed them? I guess what I'm trying to say, is that perhaps it's important to stop and smell the roses. Try and enjoy yourself within reason, throughout your life, after you have established a stable income and financial security.
I hear what you are saying and I don't think most of the responsible finance RUclipsrs would disagree with you. I think most of them, including myself, think you should slow down and smell the roses but you should really plan for such frivolous spending. As for me, I have a budget for such things. The main concern is that most people do not save enough and if I er saving happens, it's better than undersaving.
I got out of debt a few years ago (other than mortgage). I've never been broke since. According to this guy, I'm "Upper Class." Nope! Just not broke and struggling.
Interesting stuff. According to the chart, I'm in the upper class. In my 40s, married with two children. Wife and I both came to this country in our late teens with no money, no inheritance. Household income of $120k+, combined net worth of $1.25M, own a couple of properties, the only debt is our home. We don't spend on a lot of things but I don't feel "upper class" at all, I'm stressed by the current inflation. I wanted to buy a $30k used "fun car" but feel it's a huge luxury so I guilt myself out of it. Is it weird to feel this way? The upper-class range must be huge.
I drive a 2018 Toyota Rav4 that we paid $28k- $35k (can’t remember)for new then. Prior to that we traded our Range Rover for it. Got tired of it in and out of the (good)mechanic shop. Once saved a bit ($600) by watching RUclips video to change out the 2 headlight bulbs on it myself-it wasn’t hard to do. We’re in the upper bracket. My husband’s slated to make over $1 this year as a physician. He shocked and surprised me when I had to sign our joint tax return and he’d earned more than $200k extra last year. We’re Boomers though. He plans to keep working and we travel, give to churches and charities and have a non-profit helping the homeless in our city. We both grew up in financially challenged homes.
@@linziee.8651 Good on you. I think "live within one's means" is a great virtue, something that isn't really touted by the American consumer culture. Although, we should all remember to enjoy life while we still can.
I've been in poverty my whole life. I'm currently still in poverty although I am saving more. I have the opportunity in the near future to become a business owner in my field, and that would push me to lower upper class. Important to note that God is the author of the world and my life. Thank you Jesus!
I’m 71 years old. I was a college dropout. Got an entry level consumer finance job at the age of 22 for $6,000/year. Retired at 66 years old from a middle management commercial finance job at $85,000/year. Never married, no kids. Did not live spartanly. I bought sports cars and hi-fi equipment and took nice vacations to the west coast every year. But I invested well and today have net worth about $700k, no debt, own my home, take my dream vacations to different parts of Europe every year. Have income from seven different sources: 2 pensions, four annuities and social security. Life is good. Never been happier.
Very interesting to see how these categories are defined, and also a little depressing as someone in their mid-20s with a good amount of student debt still. I work in a "specialized profession" that carries with it the social capital of an upper class occupation, but starting salary for the first 5-10 years is sub-100K and with my student loans I technically fall in the lower class bracket by net worth...
The ratios of net worth to income are surprisingly low for the middle class groups. I would have guessed middle class homeowners would have a lot more home equity built up as well as a lot more in retirement accounts than the median net worths suggest. There has been substantial growth in real estate and stock values over the years so I would have assumed that would be more reflected in the net worths of these groups than it is.
This is so helpful. I would never expect our level. We are such frugal people. All our cash is already named for something. We go on vacation for almost free with our points and we always pay things in full.
I've been in the upper class for most of my adult life. My parents preached to never buy anything on credit that you are unable to pay for in cash. My only loan was a 30 yr mortgage that I paid off in 5. I've always lived quite happily below my means, prioritized saving/investing and currently have over $2 Million is assets. I still work because I enjoy it, not because I have to. IMO, it's not how much one makes that determines their wealth. It's what they spend it on that matters. It seems that too many people have confused needs with wants and they've conflated material goods with self worth.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Lourd-Bab However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
Poor ? Middle class ? Wealthy ? I couldn't care less. Those are just arbitrary labels. I am 63, starting my retirement, bit by bit. I have enough. Not by making gobs of money - but by living within my means. A lesson many people would do well to learn. I am single, with no kids...and NO debts. I haven't had any debts for over 25 years. I do just fine and will continue to do so. The KEY is and always has been - living within your means. If you make $75,000 per year...live a $50,000 lifestyle and save the rest, for example. Too many people over-extend themselves when young - and stay over-extended throughout their lives. That is a recipe for misery.
$350k net worth at 25. Started saving 50% of my pay at 21 after college. Now making 245k give or take per year and putting away 70-75% into a diversified portfolio (HYSA, CDs, and index funds). I grew up lower middle class as well. Sometimes it’s hard to shake the habit of skipping meals/eating really simple food. I live a pretty frugal life but find a lot of joy in it. Makes me appreciate the little things in life
I’m 33 and in the upper class. And I’m also retired :) hit my first million through investing when I was 30 and now I am managing my personal multimillion investment.
Dude that is awesome! What are your current investments if you don’t mind sharing? I got burned on some higher risk investments like startup companies and stock options, so I’m currently working back into steady dividend investing and real estate opportunities
@@jseels I’m currently holding some PLTR and TSLA shares for majority of my investments and I have been trading options too :) For options I sell covered calls and puts.
@@charlescg3904 there are more traders that blow their account up, than end up making millions. Pro tip...dont believe anyone trying to sell you a course on how to do it. Covered calls and puts are the key there....COVERED...it means he has the money in his account if he gets put to, or shares called away. Everyone thinks options are a get rich quick method, if you just buy the course, look at some trends etc. It works till it doesnt.
@@camaro6810 I’m an entrepreneur by trade I’ve touched a tiny bit of trading in recent years but yes I blew up all my experiments. Not planning to make a career out of it anytime soon but I do see people who have good systems in place making a killing. Especially in forex, it’s something I’m considering when I sell my business or go into soft retirement.
This was quite eye opening - thanks for this video. I am currently 31, married to my high school sweetheart, we have two children (8 and 4). We are blessed that she’s able to be a stay at home mom, but will be starting her own business once our little one is in school. Our net worth is currently 250k and my income is 125k this year. We have a huge amount of equity in the home that I built as the owner builder with tons of sweat equity. I have about 2-3 streams of income right now, but my goal is to have 5 streams of income by this years end. This net worth would be higher but I recently took on more risky investments, startup companies and higher risk stocks. I learned the hard way to not trust others with my money, I am now refocusing my efforts into consistent monthly dividend investing, and my first real estate opportunity. Honestly it’s more about saving and investing consistently rather than “getting rich quick”. But none of this is as important as the peace and happiness I have beyond temporal wealth. I thank God who provides all things… for I am blessed beyond measure just to wake up healthy every day and be with the ones I love. And I am a huge huge believer in the law of tithing or charitable donations - we donate 10% of our income and feel it has come back to us 10 fold. I wish this peace and blessing upon all who read this. May god bless you and may you continue to grow both spiritually and temporally 🙏🏼
Thanks for the informative program. I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made millions from the recent 2008 recession and I was wondering if such success rate could be achieved in this present market. and the Federal Reserve taking a more hawkish approach to interest rates and bond purchase tapering.
I feel exceptionally lucky I started investing in my early 40s and consistently compounded my income to create more cash flow. I grew to a 7 figure well-diversified portfolio having exposure to different prolific investments mainly stocks, real estate, precious metals, and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A... keep investing and you will be fine.
I started my kids with Roth IRA Accounts as soon as they had their first high school jobs. Then they continued with a Roth each year. State college degrees, no loans. Now in their 40s, and on target heading for upper class!
Yeah man. Feel you there. Still remember wife and I graduating with 100k in student loans and buying a house 3 months later...crazy time. 10 years of making some decent decisions and good income bumps really can change things.
@@humphrey School. Job. Save. Quit. Start company. Sell. Start 2 more companies. Sell one. Pivot the other and still working and saving. Time is on your side.
Having a net worth of $2M to $3M with a household income of $400,000 is considered below average in Silicon Valley. No exaggeration and that is sad and unfortunate!!!
Very informative video, and full of great info. Thanks for putting out this content, regardless of whether people use it as a sounding board to grow their personal worth.
36, Fit in upper middle class by this video. Own multiple small businesses that we are hoping to grow over time as well as continue to pay down start up debt so hopefully we can get to the next level in the coming years.
Thanks for the continued viewership lately! I love you all, it's been awesome to see. Please subscribe to the channel & Hump Days Newsletter: humpdays.substack.com
Great video as always @Humphrey Yang! It would be interesting to see the quintiles broken out by age range. For example, $600k net worth for a 20 year old would be considered vastly more financially well off when compared to a 65 year old with the same $600k, yet based on the definition in this video they both would be labeled as upper class.
@@robertbobm thanks Robert/bob, will take a look and see if the data is broken down further
你好像吴彦祖啊
That statistic Is BS its the government trying to saying you, you are all right, there is some people who do worst than you and reality. Most of society is lower class and some few are middleclass. Fewer yet upper-class. In italy Lower middle-class is when person has 8 year worth of income as net worth on median salary. And even that is not realy accurate. To divide financial class to brackets is deceiving. From middleclass people is expected some resistance to crisis. And also upperclass is not just upperclass there are people who have 5 million in assets and are thouse who have fewhundread billion and thouse who are between.
@@humphreywelcome to Loudoun county
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
The current market conditions may provide opportunities to increase revenues swiftly; however, experience is required to carry out such a plan.
Many people minimise the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm solvent. I looked for licenced advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
Sounds interesting! Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
“Rebecca Nassar Dunne” has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
I found her page by searching for her entire name online. After that, I emailed her and we set up a meeting so we could talk; I'm currently waiting on her response.
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.
Impressive insights! For beginners like me, managing and staying updated can be overwhelming. Are you an experienced investor or do you have a strategic approach for staying informed?
People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $275k to around $750k.
That's quite remarkable! I'm genuinely interested in benefiting from the guidance of such experienced advisors, especially considering the current state of my struggling portfolio. May I know the name of the advisor who has been assisting you in navigating these financial challenges?
"Sophia Maurine Lanting" serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
I grew up extremely poor. I have an upper class net worth but a lower to middle class salary. This is called the power of investing early and living a frugal lifestyle.
The upper class net worth is really lower upper class. Since if you are in the upper class earning buckets you can get there in a few years. The solidly upper class bucket is probably around 2-4 Mil.
Good for you. We are the opposite unfortunately. High income, not good at investing.
Same here. Upper class net worth (and no I'm not house rich even though it's paid off) with a middle class salary. I don't consider myself upper class. I live a lower middle class lifestyle.
@@sorka95032 Your net worth is what determines your class not salaray. Mark Zuckerberg famously made 0 salary for a long time, Is Mark Zuckerberg not upper class?
@@sorka95032 Well said..... same for me. You only need to impress yourself.
There are a lot of ways to judge wealth. When you get older, there's one parameter that trumps everything. And that is your health. Good health should be your goal.
I disagree there is only one way to me. If your kids still want to visit you and spend time with you once adults then you’re wealthy and successful.
@@arno222444 If you are dead your kids will have to wait to visit you and spend time with you in heaven.
I got lucky; around my 40th a gastroenterologist ordered off all animal food and it’s been 17 years of positive living. My husband is very much omni, but he still turned the house vegetarian, which blew my mind. But he watched the majority of his family fare very poorly with heart disease and then watched his father die of prostate cancer.
That said dementia is at the forefront for me (both grandmothers and currently my mom), so over a decade ago I convinced my husband for us to get our estates in order legally and to take out insurance for long term care (life insurance too). Good health is paramount, but genetics gets in the way sometimes. Investing is awesome, but the worst thing a successful investor can do is not have their affairs in order and letting the government take a chunk of it through probate, especially if you have dependents.
You're absolutely right
Health and time are priceless
Went from lower middle class to upper class over a span of 25 years. All due to focus, discipline and, yes, pure luck being born in the U.S. Thanks for the reminder that upward mobility is possible in our great country.
noice.
It (upward mobility) won't be for much longer if our government keeps up the insane spending levels of the past 15 years.
Honestly, don't get so focused on the externals. You can only control your own habits and financial destiny. Keep doing the right thing, and just consider bad government as another required expense. That just means you have to work even harder in spite of that. It's not fair, but then again, life isn't fair :). You can make it entirely on your own, regardless of what is going on in politics!
50k Net worth at 25 years old. Started with $100/mo when i was 18 years old making 30k/year. Now making 60k/year shooting to save $500+ per month.
Continue,smart kid ,but stay with it when bumps arise as they will
Don't get sick or killed. Nothing worse than living like a pleb to save a lot of money and never get the chance to enjoy it.
@@Lex-Rex you don't sound like you plan at all for retirement with that thinking haha. You can do both, honestly.
@@KalebSDay Not really. A lot of people (especially men) that retire die. I am in my early 50s and have been paying into social security since I was 16. I also have a 401K with a very nice amount in it plus other things. I will not retire rich, but should not have any issues with money as I currently make over 160k a year and live on a 80k year lifestyle. My wife even makes more -- a lot more.
@@Lex-Rexyou are correct. One issue of successful retirement is good health. Health is wealth. The other issues are taxes, retirement savings, and spending
I’m in my mid 40s. Single, no children. I was fortunate to enter the work force with an engineering degree and no debt, thanks to my parents. I own a modest house (with a mortgage) and a modest car I paid cash for when it was new after the previous one began to fall a part. I don’t live in high cost areas either like NY or coastal CA. My net worth is around $1M which is mostly in retirement accounts. I don’t feel rich or like a millionaire but do feel fortunate and thankful. I also feel if this channel (and others like it) were around 20 years ago, I would be a lot, lot wealthier. No regrets though.
Why what would you have done differently?
@@username16129 i wish I did a net worth statement starting out. It would have changed the lens by which I viewed financial decisions. I also did some reading of finance books, just not enough and not soon enough.
😐😒
I agree, I would have put money in an index fund much earlier than leaving it in a savings account. I feel like a fool adding more years to my working life.
Who are you amassing all that money for ? Such wealth without having children is pretty pointless in my opinion.
According to this video my wife and I are “upper” class based on net worth. Neither of us received any significant inheritance. I grew up very poor, raised on welfare and food stamps. But we both worked hard through college and were able to get rewarding careers. We live modestly, with zero debt, and are maximizing our 401k investments every year. Our goal of a comfortable retirement is looking very possible!
I am in the same boat. I grew up poor and dropped out of college. We worked hard and saved. Now we are comfortable and our net worth is over $3 milllion. We still have another 17 years to work and save for retirement. We live below our means and are always looking for new ways to save. Many of my friends retired early and live off of rental income or investments. Unfortunately we are not that lucky.
Brilliant. So wise.
Same. We both grew up poor. I ate the real government cheese (grilled cheese) after my great grandmother scraped off the mold. It came in a rectangle unsliced. We both worked multiple jobs. At one time I was working at a marina, fast food restaurant, bookstore and had a side hustle washing boats. Your money can go far if you manage it. You can buy a dozen eggs then boil them then have an egg and fruit for lunch when you're young and you can also learn about Ramen noodles and
discounted bread stores etc. You can squeeze those dollars with coupons, roommates and eating with relatives or friends. We both worked and paid for our own college. It took me significantly longer to get my degree, but I did it without a student loan.
My wife is now a teacher and I'm a programmer. We have two boys that eat like horses, but we manage to save and spend wisely and do without sometimes to save so we have a high net worth on a middle/lower middle class salary. Like most Americans we were minimum wage workers but didn't stay their long. Anyone can achieve the American dream. They just have to make goals, not buy a new car every three years and prioritize their needs over their wants.
Same here... Congrats to you! 😊
Another one here in 'upper class'. Grew up poor, community college dropout. Started a career at 30 years old and just kept increasing income, keeping lifestyle in check and dumping money into 401k and other investments.
The definition of wealth should be the amount of time that you can maintain your lifestyle without working
Yeah, how much of your time do you spend with people you enjoy being around? Vs 😱
No, thats lavish.
@@Subremedy having the option not to work because you lived frugally to attain that ability is anything but lavish.
The quality of the lifestyle is an issue. You must have a lot of available wealth to maintain an upper class or close lifestyle and not work. And conversely. I live in a pretty affluent HOA in Palm Beach County and we all do a lot of international travel, its part of the lifestyle. There are code words that denote the really rich. When they talk about tours they say Tauck which is the most expensive tour operator and when they talk about cruises its always suites on regular cruise lines or overpriced luxury cruise lines . We dont do Tauck or do Suites. Tours, I do a lot on my own and set up private tours at the destination and save a ton. Cruises, We are locked into RCCL/Celebrity and are top tier in both and get a lot of perks. There is no belter ships afloat than the Edge class ships. Period. I bought 100 shares of RCCL to get the owners discount for each cruise. I bought it last year and it was not cheap. I have more than doubled my investment in one year. I can fund many cruises if I choose to cash this in and give up the discount but I wont.
Bingo!
I'm a retired welder age 62..I bought a few houses paid them off. I was fortunate enough to inherit the house I grew up in and just recently sold it. No debt. Everything together puts me over 2mm. I try not to be too spendy and live a low key life.
Some days I feel like I need to be doing better, but videos like this help to remind me of how fortunate I am. I am 23 and just celebrated my 1 year work anniversary and after tallying up the OT I put in, I earned $94k as a civil engineer. My net worth is just above 0 as I work on out pacing my student loans, but with an about 60% savings rate I'm hoping to make it to the top. Thanks Humphrey!
What a salary at such a young age. Is this after or before taxes?
@@_Wai_Wai_most likely before taxes.
That's great for an entry level engineer.
@@_Wai_Wai_ it’s before taxes.
Savage, congrats!
Never been called middle class and broke at the same time. Thanks brother 😂
Same! I knew my spending habits were bad... but this just hammered that point home pretty severely. Wakeup calls are good though!
Same here.
Humphrey, that was refreshing. I tend to get lost in the pursuit of financial success, the obsession to earn more and be financially "free". To know that earning +$50/day puts you in the top 20% across the globe - it makes you realise how good we have it and to take a pause occasionally and practise gratitude. I want to create a balance where hunger and drive don't diminish - but also be reflective and grateful enough, that my financial pursuits aren't crippling. Appreciate the breakdown, all the best!
you are welcome!
50 dollars a day is less than 20 k a year?
How good we have it? In the US if you make $50 a day you will most likely starve or freeze to death. Now if you are able to live in a poor country where $50 a day is rich and still pull US income of $50 a day you would be able to live like a king due to very low cost of living.
@@ericharold4074 - It's true that geographic location partly defines how well off a person is at a given level of absolute income. For example in many poorer parts of the world, US dollars are in high demand. If you have actual US dollars and a way to trade them on the black market, you can probably get a lot more with your dollars than you can in a high-cost-of-living location like San Francisco or New York City. However, while an actual dollar may go farther in a poor country, finding ways to earn an actual dollar may be much harder. In locations where costs of living are high, job opportunities may be abundant and salaries are often high to match, at least for those with marketable skills. That's why people with high levels of education tend to migrate to big cities with high costs, where they find many more ways to monetize their skills than they might find in say the rural parts of Afghanistan. And when people migrate out of states like California, they tend to create the same kinds of high-cost enclaves wherever they go.
But another point that I think supports your premise is social expectation. If you live in the USA, you're expected to have a certain level of material possessions. You have to keep up with people around you. In contrast, if you are in a poor country, there's no shame in being poor. You're surrounded by other people who make do with what they have, and you can learn those life skills from them. Whereas in the USA most people have long forgotten how to do much of anything for themselves, and everything costs money. We don't have good options for being poor in the USA, whereas in a poor country being poor is the main option.
But we have people making that and more sleeping in tents , cars and under bridges, dying from exposure, no healthcare and going to food banks n shelters. But I guess it could be worse. But what's worse than freezing 🥶 the death in a cardboard box.
This actually makes me feel pretty good about myself. I was 16 when my son was born, so it was hard for me to juggle work, school, and fatherhood. I had to very slowly work my way through college. At 29 years old, I bought a house. At 30 years old I graduated college. Now I'm 31 years old. The only debt I have is my house. And my net worth is right around $70,000. At my current rate, I should be hitting the $100k mark before I turn 33.
in us?
@@ionutruxanda7477 Yes
Congrats dude! You're chugging along and showing your kid(s?) What it means to be an adult.
@@ionutruxanda7477 Yes, in the US.
37 years old, 1.1M net worth, just got huge raises last few years and will make over $400k this year as a pilot. Grew up in poverty but studied hard on finances and ive saved over half my income for the last 7 years.
Killin it bro!! Happy for You 😁👍👍
Make it
Save it
Welcome to the middle class
Congrats!!! I’m impressed!
I'm retired...you need more!
32 years old, 250k net worth. Started my saving/investing journey late only about 3 years ago wish I started in my early 20s, still a long way to go but never too late to start!
amazing Yifei!
@@humphreyone to consider but maybe you should make a video for the late bloomers because as I’m sure you’re aware there a majority of millennials still don’t know any of this and now have to play catch up. These types of videos are a gem for those around their mid twenty’s and younger as they’ve got a lot of time, potential and prospects but for those in their early thirties and beyond this can be a discouraging reality check. Just some food for thought
You saved $250,000 in 3 years? How?
@Lala-ft1mb : I did it by working lots of OT, making good money, and not blowing anything .
Hard work and dedication to yourself.
@@ada-yw1bb You didn't blow anybody?
Just turned 41. Been investing for 15 years. Started a business 12 years ago, and starting buying rental properties 3 years ago. Should hit $2m next year.
I love how he shows the global scale to REALLY put things in perspective for us. If you’re making $50 or more per day then you’re upper class from a global perspective.
thank you! yep.
Which is also a pretty useless thing to know considering this doesn't account for cost of living.
Yh worthless statistic, since it doesnt factor in differences in cost of living
Literally don’t care about that perspective as I want to retire. I don’t want to be working myself to death and broke in the US at 70 just bc I can work at Walmart make $50 a day and be considered globally upper class. Joke of a metric.
@@MentalChoresPeople in undeveloped countries have drastically lower access to contraceptives and reproductive care, hence the higher birthrates.
My husband and I are 69..retired at age 62. I was an RN, he worked in security. We have combined IRA's and savings totally $650,000.. currently invested in a 6% FHLB bond. Our home is assessed at $ 430,000. And we are debt free. We were fortunate..we eached worked for 2 employers providing Fully paid pension plans!! ..so we live on our social security checks and 4 pensions..we have always lived within our means..we probably will never need to draw on our investments..those will be left for specific charities and student scholarships..
Splurge on yourselves abit. My wife died 2 weeks before our 39th anniversary. I had been retired 5 years. She had been disabled when we were in our late 20s. Our assests will go to our son but if I didn't have him, I'd be spending the money on myself. Most charities and schools waste most money on benefits for those running them. I wish you long and happy lives. Good Luck, Rick
No. No. Spend and enjoy some of that money. Travel to five new places.
My wife and I achieved middle class recently. Two paid off 4-year college degrees (engineer & teacher), two used fun Hondas paid in cash, a new home, and after a job change, quintupled my modest retirement savings. Have yet to turn 30. Invested heavily into the tools, education and careers that make us unique and useful. Watched a lot of friends hit other goals and live more lavishly for a long time, but now the momentum has picked up and it feels like we are on a rocket ship. Even if we crash, I still feel confident we have what it takes to keep going. It took, and still takes, a lot of discipline and patience! Thank you for the perspectives, tools and insights that make us grateful and optimistic for the future.
My mom was making 30k or less her whole life and we grew up on food stamps. I'm starting my first industry job at 70k and I've been raised to always try to save money where I can by making my own food, renting cheaper, etc. Never thought I'd be able to buy a house for myself and my mom for a permanent home but its possible now even though the market is still expensive.
all the best!
You're a good kid. My sons have the same drive. Being raised in poverty was hard, but I still taught them how to budget and always pay their bills.
😊
The key is to never lose hope and keep aiming higher!
Age 44. $300k net worth. No debt. No Student loans. Modest $70k yearly income. Life is great.
Nicely done
No kid? Kids become a symbol of wealth now because they are so expensive.
I would agree.
I actually think I'm very close to that similar statistic. Not quite there, but close.
I'll take that and be happy.
Dang, that means my sister had a network north of 2 million. Wow!
Do you live in a van down by the river?
A really big problem is that this does not brake people down into age groups. As you age in most cases you will climb categories. So the lowest will be mostly young people and the high end will be mostly old people. This does not help people know how they are doing with their age category peers.
He did mention that for a minute and explained it fairly well
@@moisesalfaro3265 To be fair its still such a big factor that it deserves more than a minute at the end.
@flimmaytinstone8980 True so you have to hedge against that by saving and spending at the same time. It's hard to strike a good balance
To say that I'm both surprised and happy that I'm considered upper-class is an understatement. I came a long way to be here. Lots of hurts but I'm here and I'm fighting to retire comfortably so I don't become a burden to my daughter.
From a daughter's point of view. The greatest gift my parents gave me was to move to a continuing care retirement community (CCRC). They preplanned their funerals and converted all their assets into stocks, bonds and cash prior to moving to the CCRC. Thankfully, they both lived long, healthy lives until they passed after brief illnesses. Their planning for their inevitable decline and deaths made dealing with their estate relatively easy. It was a great gift to me.
it's kind of scary because even with a million plus in retirement, you still need a tight budget to have it last, especially if inflation outpaces interest/dividend earnings.
Little tip for anyone reading. As a 28 year old, apparently upper class with only a highschool diploma, you absolutely DO NOT need a college degree these days to be successful.
It does help and it is always worth investing in yourself but it is not mandatory.
The military and then college gave me the confidence I needed to make it. The push was crappy pay at Home Depot and Dicks sporting Goods that's what makes you go for it.
@inthewoods9470 you could've skipped the college part. I did military then a year and a half of college, then dropped out. Still have a solid 2 years of gi bill im just never going to use lmao.
@SpynCycle57 that's one of the ones you don't need. It's a good one, but not needed. I'm a computer science drop out. Everything you need is online.
@SpynCycle57 that's dumb. Find better companies. I just interviewed around 7 people for a dev position. I honestly didn't even think to look at their school section.
Based off of net worth, your income does not need to meet those numbers. Real estate appreciation and investing hits net worth even with modest income. Great content!
I advise you to research the year 2008, real estate does not ( and realistically can't) go up year over year, same with the stock market.............
@@MB-rr1fb oh my. One year it went down? Oh man, I better just put it all in to the bank and have zero risk.
Over time, but and hold real estate is what creates wealth.
Anyone can take one bad year of any investment and say it’s not good.
This is a very small outlook on investing and bodes a poor mindset to have
@@FIRE_Dan_ I agree! Same goes for investing in the stock market long term!!
yes, i've recently been bumped up a bracket due to my homes appreciation. Those of us that bought 4+ years ago and have the 3% or less loans are doing pretty well right now. My stock investments are going gangbusters right now, but I took a HELOC and am looking to use that to leverage into a rental property.
Appreciate the comment about income. Income has nothing to do with Net Worth.
My net worth is over a million and I do not feel rich . I feel comfortable. I still shop bargains ,no debt,no mortgage, but I do buy nice vehicles and pay cash .
Exactly, I'm the same as you!
You wanna marry me?
You are rich because you do not waste your money.
Same here! I feel comfortable!
Most people's "million" is tied up in their home equity and their 401K, neither of which is liquid enough to use for cash purchases. So yeah, it will feel like you don't even have that money.
Behavior determines outcome. Delayed gratification usually wins out.
$50k net worth and 25 years old. Basically 100% of that is in retirement accounts. No debt, no assets. I know it’ll start to really pick up later in life, but damn it takes a while to get that ball rolling.
Yeah, it really does. I suggest making small goals along the way to keep yourself encouraged, 100k net worth, 100k invested..
Just make sure you can cover expenses in case of an emergency and you'll be golden. Might take you longer than you expect. Since housing is 9-10x more expensive relative to modern salary. But you can still pull way ahead with careful planning. Best of luck.
It will be worth it… keep putting it into retirement if youre able…. It snowballs.
You only got that through privilege, we need to redistribute your wealth between illegals and people who suffer from generational welfare.
I am 74, wife 71, made 96000 until 62 yrs, then secondary job 60000 per yr, wife made 70,000 when I made 96000. When i made 60,000 per yr she made 94000 per yr. We accumulate 1,029,000 in retiement funds and had 1,3 million net worth. Now 6 yrs retired, still have net worth1.2 million. We are living comfortably on 108,000 per yr.combined. -in 30 % tax bracket. Have 80,000 mortgage at 2% and making 5% on our investments. Doing well, but not living high off the hog.
I am considered upper middle class due to net worth, but not due to annual income. Real estate income/assets are what got me there. I bought my first property at 23, and recently sold it for over 100k profit (I am in my early 30's). Having good credit in your early 20's really helps to set you up for life. I would recommend student or younger people get a student credit and maintain your credit over the course of 4-5 years your limits will increase (don't use it), keep your expenses low and you'll be in a good position.
One overlooked element for growing net worth is to remain employed with a stable income for an extended period of time. Job loss and lack of relevant skills will undercut any financial goals for anyone.
Oof, that was a wake up call. I'm Upper Middle class by income, but Lower class by net worth (I have a negative net worth right now). I 100% agree with your point that many "lower class" people get stuck in a cycle of debt, which seems to characterize our family since I was little. Working my way up though. My net worth has climbed over the last couple years, so once I pay off a good chunk of debt I can make it to solid middle class after the debt is paid down. Age 27 for context.
nice, you got this. and you're young! Keep goign!
Very similar here, near the top of upper middle class income, but at the bottom of that group by networth.
Sold my home just before 2020 kicked off. Haven't been able to buy anything usable since. 38.
Keep plugging brother.
Dang, upper middle class income at 27. You’re doing really well.
Cool im the opposite of you, my income sucks but i made a great investment making my networth better
Been an engineer since I graduated from A&M 7 years ago (29 years old now). Firmly in the upper middle class, I own a modest home in rural Texas (almost paid off), and drive a 2006 Honda Civic. Living below your means and investing in assets is so important for building wealth.
Hope that's an Si!
nobody cares
Wait another 5 years before getting married and cut back on drinking.
@rickybosephus2036 you cared enough to comment ...
@@DizzKidz bragging about not having children requires criticism. saving money when the world needs children is shamful not good
I was born with nothing and I still have most of it left.
Same fam. No matter how much I strive.
That made me laugh 😂
That is the product of good saving habits. You've lost none of your net worth.
@@bradh9800 Indeed! 🤣
I enjoy his calm presentation. Not overhyping things but is factual
31 here.. Australian couple.. house nearly paid off.. networth about 1 million with retirement accounts..
Household income 170000$
Truck driver and stay at home mom on income insurance (cancer)
Being frugal in your 20s can bring you far…
This is all in Australian $$
41 years old and I'm considered upper middle class. Just passed $1.5 mil net worth and I still feel lower middle class. I've been investing for 20 years now as I started in college. Really trying to set myself up for retiring early. Thank you for sharing Mr. Yang.
1.5 million worth of real estate can rent for 8k net profit per month with no mortgage and in cash no taxes. How do you blow 8k a month and feel lower middle class?
@@lineage13 It's my net worth, not my portfolio. A majority of the money is in tax deferred accounts meaning I don't have access to it until I hit 59.5. I'll continue to be frugal and enjoy life until I have a big enough taxable account to retire early.
I think the OP's number is household income, unless you are single.
@@dipperq I'm sorry. What are you referring to? The video is about net worth.
@@marinekappa82 i meant household net worth.
Very good video, where you touch upon so many of the salient points that go into determining net worth. A video that correlates net worth by age would demonstrate how time gradually elevates those who are reasonably smart with their money into the Middle, Upper Middle, and Upper class categories. At age 35, my wife and I were lower middle by net worth and middle class by income. 20 years later and we're in the top category by both classifications. Something worth noting is a lot of people who are truly "Middle Class" at heart may have amassed enough wealth, or net worth, to be lumped into the "Upper" class, but they do not feel that way and do not act that way. That's how they got there, by being humble and grateful. That's also how you stay there.
Hi there, started school at age 5 wearing a borrowed pair of shoes. Most of my clothes came from thrift shops for many years. Finished college. Became an officer in the Armed Forces where I did well, but not exceptional. Years away from home. Wounded, so I literally shed blood for what I've got. Retired as a senior officer. Now UMC. America is a great country.
I am 61. I guess we are upper class. I never thought of myself as wealthy. The only reason is we bought a house in NYC in 1990 and it has appreciated so much. Weird.
According to this, I am well into the upper class but I certainly don't act like it. I walk everywhere, take public transportation, eat 50 cent tacos in Mexico, and pretty much live the same way I did in my early twenties now that I'm in my mid-to-late thirties.
I own a lot of income-producing real estate so it's income covers my living expenses several times over.
I tend to do the barbell approach, either act really poor 80% of the time or the other 20% of the time to do lavish things. I'm not a fan of middle ground.
Yes, one thing that tends to happen with a lot of people as you build wealth, the more wealth you accumulate, the more frugal you become with certain habits because you're so much more financially conscious. You tend to prioritize and splurge on things that are much more important to you, but you also see the value of money.... that extra 200k on my fav car would have made a great downpayment on an investment property or could have gotten me 10% return on a conservative portfolio!
You're the first financial youtube content creator I've seen do a global comparison. Very eye opening. Thanks for the content!
Just looking over at the analysis, few things are missing. One is that everything is relative to geography in the states, 100k a year in Iowa could go fairly far, in NYC you wouldn’t be able to rent an appointment without having few roommates. Another thing to note, investing 100 dollars a month might get you to 400k retirement in 50 years but it will not have the same buying power as today. The prices (historically) go up over the same time period. So yes, you will have 400k but it might be more 12:48 similar to having 100k in savings today. Still much better than no savings but not going to get you the upper class retirement :).
100/month to start. 10yrs from now it should be $200/month
If you can get someone on the road to retirement at age 25 with $100/mo, they will change that amount quickly.
The strength of compounding interest is the most gorgeous thing to view!
After 2008, I changed course.
Sold out city living, bought 5 acres in the mountains, all very modest. I have a big garden, a food forest, medicinal plants, edibles. No debt, low income. I live modestly, I am not a Consumer Unit. So I save $300 per month, but will eventually need transportation. When I buy something, it tends to kill an expense, like when I added solar. My big garden worked for me during inflation, called my Free Food Diet, and I am healthy, few complaints and garden herbs and fine for that. I tightened my budget and still stick with it. I preserve my garden for all year.
I identify with the old janitor guy cutting his own wood, although I was a skilled white collar worker.
A couple of years ago, I used to be over $100K in debt; now I'm debt free with $110K in savings, $120K in income. Debt-free feels amazing. Super glad to make it to middle class at 32.
On the path to upper class!
Those are some serious strides. Gj
Good for you! Yes it does feel good to be debt free. I grew up poor. After meeting hubby who is a frugal saver it is nice to retire and not worry about debt. WTG!!!
Congratulations!
At age 26, I am currently in upper middle class for income and networth, and moving towards the upper class income soon. I was lucky to get hooked on finances videos during college and started my Roth IRA at 18 and started maxing my 401k as soon as I got my first job. Looks like my major in Public Policy worked just fine
hopefully you can continue to max your retirement accounts every year. You will likely be able to retire by 50 if not sooner. I already have nearly $440K in my 401K after only maxing it for only 10 years. I hope to work another 10 or so years and then retire early.
I wish we would have Roth IRA oder 401k here in germany too bit there is not. I do not feel a retirement support here so everything will be taxed which make it a little bit hard. I hope an alternative will come here soon. Nice to hear that it is running for you 👌🏻👍🏻
That is awesome! I wish I was that aware at 18. I didn’t start a ROTH until I paid off my house a few months ago lol. I find that many late teens to young adults don’t understand the importance of tax leveraged accounts and investing in general; this was my case.
Unfortunately, I feel like many young individuals feel hopeless in todays environment with raising mortgage rates, inflation, and the lack of knowledge of where to start. I believe that if at 18 small little steps of just setting aside money in a Roth IRA could be the difference of financial freedom in the future.
Don’t forget you capitalized on the pandemic stock market crash - am I right! DOGE to the moon!
This is a great perspective check. I’m surprised someone with a home paid off and mostly debt free would fall so high (upper middle or upper class). I guess people don’t tend to think they’re rich but many regular families are if they’ve simply prioritized good saving and paying debt even if their income is middle class they could be upper class.
exactly
It's because people don't actually pay off their homes. If you look at the over 65 crowd something like 2/3 still have a mortgage.
You read my mind Michael! My pay is not middle upper class per say, but my networth is middle upper.
They always say.. it's not what you make.. it's what you save!
Also depends where you live, my numbers rank high, but I live in San Jose, CA. Expensive.
No sociologists define the classes by income quintiles like this video does. The top 1% of incomes is a better rough approximation of the upper class, and the top 10-15% is a decent measure for the upper middle class. Upper middle class is someone with at least a $2 million net worth by retirement. Age is important here, because a 40 year old with at least a $500k net worth is also likely in the upper middle class. For a 30 year old, net worth is hardly a measure of class at all since a 30 year old doctor with a negative net worth (student debt) and a $300k salary is clearly living an upper middle class lifestyle while being in the early stages of growing their net worth. The upper class is more like someone who has saved $10+ million by retirement (in 2023 dollars)
I think about how poor my family was growing up. Sometimes we didn't have electricity. Sometimes, we didn't have food. Now, based on this video, I'm upper middle class.
No college. I'm no entrepreneur. Just worked my hardest at whichever his job I had and kept going for better and better jobs.
The American dream is real.
CONGRATULATIONS!!!
I love this. Single mom, never made more than $60 at my peak, still able to retire early and comfortably. Like you, I just kept my head down, lived modestly, and worked hard.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life too. 🙏🙏🙏
Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
exactly! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
Hello nice comments here, please what exactly kind of investment are you talking about here, I'm really interested too
I believe there several businesses one can do easily and succeed, like for me I do forex trading
I am 80 yrs old and have a 7 figure net worth, with no debts and a home value of about $140,000. I invested in stocks and mutual funds over my working career. I still buy stocks in retirement.
If you work for a living, you are working class. Period. Class solidarity
Wow! This places things into perspective and makes me more appreciative of where I'm at in life. I'm an accountant in between upper middle class and upper top 20%. Growing up in poverty sometimes makes a person feel like they constantly have to make more and acquire more. Gotta just learn to enjoy life.
dont forget one bad day and you could lose it all lmao
I struggle with this. Grew up with a single mom raising 5 kids. Some birthdays had no presents. I'm now 38 and according to this I'm upper class. Sure don't feel like it. I've been working 60hr weeks and investing for 20 years and can't get enough. I'm shopping for a new car and am looking at 3 year old Honda pilots when I can easily afford Mercedes. Maybe I should spoil the wife with that trip to Florida and a new suv 😂
@@mattvan5100 I'll make it easy for you and vote for your wife to get a new SUV and trip lol. Sounds like you've been on the right track. Ok to splurge every now and again. You don't want to get old and can't enjoy the fruits of your labor. Enjoy some along the way, if you can.
@@mattvan5100 money is a tool. dont forget to reassess how much you need, how much you have, then maybe you can start to loosen the ourse strings if youre set
Age 26. Net worth of about $5k. $10k in student debt but I have absolutely no plans to pay it back. Salary about $18k a year. Never been happier truly
Bit late but as a 34 year old who was born in abject poverty(we're talking picking bugs out of our food cause we couldn't afford new food kind of poverty) I'm pretty proud to say I'm at that lower middle class position. I just need to go back to school finish my degree and get my way to that middle class position next.
Depends on the type of degree. Right now Plumbers make a hell of a lot more than 80 % of degree holders that are not AI Techies. Apprentice maybe?
This is going to be Humphrey’s most popular video.
haha i hope so!
@@humphreywell, I’m adding a like and a view. Maybe I’ll share it too!
his most popular, he will never have another video reach this popularity again
It was a great video. I gave it a like and I don’t do that very often on here lol
@@humphreythe video started off slow in view count but has taken off to be your 7th most watched. I watch them all but updating this 3 times a year would pull in equal numbers 😎
One big problem with using net worth alone as a measure of wealth is that a young doctor or lawyer that's making a ton of money but hasn't yet paid off their student debt counts as "lower class". On the flip side, someone nearing retirement who's narrowly in the top quintile isn't gonna be able to afford a particularly luxurious lifestyle.
I would fit myself in the middle class but if I were rich I still live and dress like the middle class. My dad raised me not to brag your wealth. This is a great break down.
Subtle wealth is the way!!!
Exactly, bragging about wealth is a fast way to get robbed.
I forget how much debt folks carry. Retired (59) but my net worth puts me and my wife way above the standard of upper class. In no way would I ever put myself in that class. I wouldn't even include my house (Over 500K) because I wouldn't sell it just to have to live somewhere else. Senior Golfer.
Thanks for this video -- so interesting. Because I came from Depression Era parents, the idea of spending money beyond my budget of necessities doesn't occur to me that much. We were definitely lower middle class growing up, but my parents still managed to buy a house and we had rental property because of my dad's VA benefits -- no money down. But I wore hand-me-downs and cheap clothes from KMart. In the last 10 years with no kids at home, when I've made more money than ever before, I've gotten real pleasure out of seeing how little money I can use between paychecks. And I don't need much.
My wife and I are both 1st generation born in the US. We worked hard, came out of school about a decade ago and went from being at the bottom of the lowest quintile with a very negative net worth to the upper half of the top quintile in that time frame. This was done through hard work, living frugally, having goals, delaying pleasure, and, exactly as you said, investing in a home, retirement accounts, and brokerage accounts.
As I get older it seems to me that cash flow trumps net worth. I am always on the hunt for income, my net worth fluctuates greatly. Rental real estate, option selling and self-employment are my pursuits.
My cashflow moves me to upper middle class. Yearly investment gains are like having another part time job.
What’s crazy to me is how fast wealth can be built in just 3-5 years with good saving/spending habits and above average salaries. We are a DINK family and have been working full-time since 2019. Starting out we were earning a combined $125k and this year we will be just over $200k. We spend $40-55k per year and also donate around 10% after-tax. Current NW at ages 26 and 28 is $500k
Agreed! 29 and 32 with net worth of 700k and houseold income that recently jumped from 100k to 700k
@@vmptaz1685Jesus wtf do you guys work to pull that much. Also what was the HUGE jump in income
Yeah, I dont believe it. This sounds like a phoney Dave Ramsey call.
Dear Penthouse…
So at 69, after working 50 years, with a bachelor's degree, I'm poor. Thank God for social security and my wife who is a RN. Whew
What was your profession?
I am, by your definitions in the top 20%. This in spite of spending 20 years, 7 months and 29 days before retiring as an Army Officer. This in spite of my living the first years of Army life far below the average College graduate.Three reasons: First, you mentioned the compounding effect. I started a systematic investment plan-pre IRA days-and invested for 15 years then I stopped and switched my investment into paying off debt-mortgage, auto loans. Then I was able to retire debt free so that except for utilities, insurance and other necessities, all my pensions go into paying off credit card debt in full monthly on a rewards card and some into mutual funds, none of which I draw from.
I'm an Architect and my wife is a lawyer. You pretty much stuck us exactly where your projections show (both 35 yr old). Thanks for the insight.
With the high home prices in California, I think this skews the numbers of net worth. I live in CA where my primary house is currently valued at 1.1M. I bought it 40 years ago for 95K. But instead of net worth, I measure my real net worth by cash flow that I can use for everyday living. For instance dividend paying stocks. My house does not produce any cash, but it does save me by not making any mortgages.
By the common networth definition, everyone that's a home owner in Silicon valley/San fran or SoCal is a millionaire.... which a million doesn't even mean that much nowadays, but even those with 2m homes paid off, they may not have the cashflow to live a luxurious life unless they sell their primary residence. It's complicated!
@@charlescg3904 right on point. Every homeowner in most areas are millionaires. That’s why I use cash flow from my assets to really measure my wealth.
@@charlescg3904 If you have assets and a place to live, you are rich. Cashflow is another issue.
I track my home price in my NW statement at its purchase price instead of current market only because of the inflated prices in real estate
This video was so powerful! I’ve been following your channel for a while (always a lot of great info/content) but this is hands down my favorite video. Great job!
at nearly 14 yrs old, dad said go out there and ask that farmer if he needs help putting up hay...we worked for him for two days...got a check for about $14...dad said, save half and spend the other half. been doing that for a long time... word spread and every farmer wanted us...made good money for being a kid.
great video...nicely done and well documented. thumbs up and subscribe.
I’m 21 and just broke into the upper class with a net worth toward $700k. I’m honestly shocked at it, and didn’t really know I was anywhere near it. Thanks for the informative video
You've had help. Unless you worked as a child, someone has helped you. Very fortunate but give them the credit. Or, you've made $700k in the 3 years since you've left high school, which is better than most professional athletes, so whatever you're doing, keep it up and help others along the way.
🧢
yeah right ;)
I scratched and clawed my way into the top 20% and I'm paving the way for my kids to do the same.
Lower class by net worth, but lower middle by income :( . Working on that
Watching this channel, or a lot of financially oriented podcasts/youtube channels/etc, the common theme seems to be that everyone should be focused on amassing as much wealth as possible by the time they retire, or even later in life. I understand that setting yourself up for a comfortable and secure future is important, but is it really best to forgo most frivolous expenditures until you are beyond the age where you could have really enjoyed them? I guess what I'm trying to say, is that perhaps it's important to stop and smell the roses. Try and enjoy yourself within reason, throughout your life, after you have established a stable income and financial security.
I hear what you are saying and I don't think most of the responsible finance RUclipsrs would disagree with you. I think most of them, including myself, think you should slow down and smell the roses but you should really plan for such frivolous spending. As for me, I have a budget for such things. The main concern is that most people do not save enough and if I er saving happens, it's better than undersaving.
I got out of debt a few years ago (other than mortgage). I've never been broke since. According to this guy, I'm "Upper Class." Nope! Just not broke and struggling.
I have so much climbing to do. What makes me happy is, I see progress. My goal is to be in upper middle class.
Thanks for the reality check. I’m early 30s and sitting very comfortably in upper class by your numbers but I definitely spend like lower class lol
Great job!
Interesting stuff. According to the chart, I'm in the upper class. In my 40s, married with two children. Wife and I both came to this country in our late teens with no money, no inheritance. Household income of $120k+, combined net worth of $1.25M, own a couple of properties, the only debt is our home. We don't spend on a lot of things but I don't feel "upper class" at all, I'm stressed by the current inflation. I wanted to buy a $30k used "fun car" but feel it's a huge luxury so I guilt myself out of it. Is it weird to feel this way? The upper-class range must be huge.
I drive a 2018 Toyota Rav4 that we paid $28k- $35k (can’t remember)for new then. Prior to that we traded our Range Rover for it. Got tired of it in and out of the (good)mechanic shop. Once saved a bit ($600) by watching RUclips video to change out the 2 headlight bulbs on it myself-it wasn’t hard to do. We’re in the upper bracket. My husband’s slated to make over $1 this year as a physician. He shocked and surprised me when I had to sign our joint tax return and he’d earned more than $200k extra last year. We’re Boomers though. He plans to keep working and we travel, give to churches and charities and have a non-profit helping the homeless in our city. We both grew up in financially challenged homes.
@@linziee.8651 Good on you. I think "live within one's means" is a great virtue, something that isn't really touted by the American consumer culture. Although, we should all remember to enjoy life while we still can.
I've been in poverty my whole life. I'm currently still in poverty although I am saving more. I have the opportunity in the near future to become a business owner in my field, and that would push me to lower upper class. Important to note that God is the author of the world and my life. Thank you Jesus!
It’s not shameful to be poor. I’m poor and I worked 30 years and raised 2 children.
I’m 71 years old. I was a college dropout. Got an entry level consumer finance job at the age of 22 for $6,000/year. Retired at 66 years old from a middle management commercial finance job at $85,000/year. Never married, no kids. Did not live spartanly. I bought sports cars and hi-fi equipment and took nice vacations to the west coast every year. But I invested well and today have net worth about $700k, no debt, own my home, take my dream vacations to different parts of Europe every year. Have income from seven different sources: 2 pensions, four annuities and social security. Life is good. Never been happier.
I invested $500 in 1984 at 18 yo. I still own that $500 and it’s $36,000 brothers and sisters. Compounding is amazing.
Very interesting to see how these categories are defined, and also a little depressing as someone in their mid-20s with a good amount of student debt still. I work in a "specialized profession" that carries with it the social capital of an upper class occupation, but starting salary for the first 5-10 years is sub-100K and with my student loans I technically fall in the lower class bracket by net worth...
I'm gonna guess vet or massage therapist
The ratios of net worth to income are surprisingly low for the middle class groups. I would have guessed middle class homeowners would have a lot more home equity built up as well as a lot more in retirement accounts than the median net worths suggest. There has been substantial growth in real estate and stock values over the years so I would have assumed that would be more reflected in the net worths of these groups than it is.
I like the comedian who simplifies this:
Name on your shirt - lower class
Name on your desk - middle class
Name on your door - upper class
That's good. How about No Name on your door - Owner.?
@@richarddebeer9081How about no name needed, living on private wealth.
This is so helpful. I would never expect our level. We are such frugal people. All our cash is already named for something. We go on vacation for almost free with our points and we always pay things in full.
I've been in the upper class for most of my adult life. My parents preached to never buy anything on credit that you are unable to pay for in cash. My only loan was a 30 yr mortgage that I paid off in 5. I've always lived quite happily below my means, prioritized saving/investing and currently have over $2 Million is assets. I still work because I enjoy it, not because I have to.
IMO, it's not how much one makes that determines their wealth. It's what they spend it on that matters. It seems that too many people have confused needs with wants and they've conflated material goods with self worth.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Lourd-Bab However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@TerriVess Oh please I’d love that. Thanks!
@@Lourd-Bab Judith Ann peace is her name
Lookup with her name on the webpage.
Poor ? Middle class ? Wealthy ? I couldn't care less. Those are just arbitrary labels. I am 63, starting my retirement, bit by bit. I have enough. Not by making gobs of money - but by living within my means. A lesson many people would do well to learn. I am single, with no kids...and NO debts. I haven't had any debts for over 25 years. I do just fine and will continue to do so. The KEY is and always has been - living within your means. If you make $75,000 per year...live a $50,000 lifestyle and save the rest, for example. Too many people over-extend themselves when young - and stay over-extended throughout their lives. That is a recipe for misery.
A famous line, pay yourself first.
$350k net worth at 25. Started saving 50% of my pay at 21 after college. Now making 245k give or take per year and putting away 70-75% into a diversified portfolio (HYSA, CDs, and index funds). I grew up lower middle class as well. Sometimes it’s hard to shake the habit of skipping meals/eating really simple food. I live a pretty frugal life but find a lot of joy in it. Makes me appreciate the little things in life
I'm a retired mailman. My income when I left was only 78,000 per year but my investments and retirement account put me in the upper class.
I’m 33 and in the upper class. And I’m also retired :) hit my first million through investing when I was 30 and now I am managing my personal multimillion investment.
Dude that is awesome! What are your current investments if you don’t mind sharing? I got burned on some higher risk investments like startup companies and stock options, so I’m currently working back into steady dividend investing and real estate opportunities
@@jseels I’m currently holding some PLTR and TSLA shares for majority of my investments and I have been trading options too :) For options I sell covered calls and puts.
Traders and entrepreneurs, quickest hacks to getting ahead!
@@charlescg3904 there are more traders that blow their account up, than end up making millions. Pro tip...dont believe anyone trying to sell you a course on how to do it. Covered calls and puts are the key there....COVERED...it means he has the money in his account if he gets put to, or shares called away. Everyone thinks options are a get rich quick method, if you just buy the course, look at some trends etc. It works till it doesnt.
@@camaro6810 I’m an entrepreneur by trade I’ve touched a tiny bit of trading in recent years but yes I blew up all my experiments. Not planning to make a career out of it anytime soon but I do see people who have good systems in place making a killing. Especially in forex, it’s something I’m considering when I sell my business or go into soft retirement.
This was quite eye opening - thanks for this video.
I am currently 31, married to my high school sweetheart, we have two children (8 and 4). We are blessed that she’s able to be a stay at home mom, but will be starting her own business once our little one is in school. Our net worth is currently 250k and my income is 125k this year.
We have a huge amount of equity in the home that I built as the owner builder with tons of sweat equity. I have about 2-3 streams of income right now, but my goal is to have 5 streams of income by this years end. This net worth would be higher but I recently took on more risky investments, startup companies and higher risk stocks. I learned the hard way to not trust others with my money, I am now refocusing my efforts into consistent monthly dividend investing, and my first real estate opportunity.
Honestly it’s more about saving and investing consistently rather than “getting rich quick”.
But none of this is as important as the peace and happiness I have beyond temporal wealth. I thank God who provides all things… for I am blessed beyond measure just to wake up healthy every day and be with the ones I love. And I am a huge huge believer in the law of tithing or charitable donations - we donate 10% of our income and feel it has come back to us 10 fold.
I wish this peace and blessing upon all who read this. May god bless you and may you continue to grow both spiritually and temporally 🙏🏼
Thanks for the informative program. I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the market crashes and I realized some investors made millions from the recent 2008 recession and I was wondering if such success rate could be achieved in this present market. and the Federal Reserve taking a more hawkish approach to interest rates and bond purchase tapering.
The market always bounces back. Make sure you are taking the time, and putting yourself in a position, to be able to do so when the timing is right.
I feel exceptionally lucky I started investing in my early 40s and consistently compounded my income to create more cash flow. I grew to a 7 figure well-diversified portfolio having exposure to different prolific investments mainly stocks, real estate, precious metals, and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A... keep investing and you will be fine.
@@RandyPelletier checked for your FA and found her web page. she is very impressive , I wrote her and I'm waiting on her.
Im 28 with a paid off home and zero debt, having a net worth of $430,000. And staying away from debt is definitely the key!
I started my kids with Roth IRA Accounts as soon as they had their first high school jobs. Then they continued with a Roth each year. State college degrees, no loans. Now in their 40s, and on target heading for upper class!
They will never be upper class. Maybe upper working class
Upper class, but I remember when my net worth was $0.
tell us how you did it!
Yeah man. Feel you there. Still remember wife and I graduating with 100k in student loans and buying a house 3 months later...crazy time. 10 years of making some decent decisions and good income bumps really can change things.
@@humphrey School. Job. Save. Quit. Start company. Sell. Start 2 more companies. Sell one. Pivot the other and still working and saving. Time is on your side.
Having a net worth of $2M to $3M with a household income of $400,000 is considered below average in Silicon Valley. No exaggeration and that is sad and unfortunate!!!
It most definitely is not. I dont think you understand what average means
Very informative video, and full of great info. Thanks for putting out this content, regardless of whether people use it as a sounding board to grow their personal worth.
36, Fit in upper middle class by this video. Own multiple small businesses that we are hoping to grow over time as well as continue to pay down start up debt so hopefully we can get to the next level in the coming years.