Clarification (I have not taken their course either but have learned these from their videos): 1. Deductibles Covered means that you have enough liquid financial reserves to cover the largest of your three deductibles. This is a bare minimum that only considers 1 of the 3 events (car, home, health), but at least covers the most expensive of these deductible amounts. 2. Employer Match 3. High Interest is 6% or higher if you're in your 20s, 5% or higher in your 30s, 4% or higher if you're in your 40s. By your 50s you want to be debt free with the possible exception of your mortgage. However, if you still have a mortgage you are not allowed to call yourself "financially independent." 4. 3-6 months of financial reserves will differ from person to person depending on if and/or how much others depend on your income and how easy it will be for you to find a new job. 5. Roth IRA and HSA would range from contributing $0.01 to one of these accounts all the way up through maxing both of these accounts annually. 6. Maxing out your retirement accounts means taking advantage of other retirement accounts available to you up to either the max of what you can contribute or until you are saving 25% of your gross income for retirement, whatever happens first. 7. Hyper Accumulation is the three bucket strategy. If you have maxed out your available retirement accounts and are not yet saving 25% of your gross income, then you save the remaining of the 25% in a taxable brokerage. If you are saving 25% but have not maxed out your retirement accounts because you do not have a super high income, you can choose to continue putting more into your retirement accounts beyond 25%, put into a brokerage beyond 25%, or move on to step 8 or 9 at your discretion. You should not go out of your way to increase your lifestyle for the sake of it if you do not actually want to spend more money, but you do have the grace to stop saving more for retirement once you hit 25%, even if you have not literally maxed out your retirement accounts yet. Technically, step 7 can be saving anywhere 25% up to 100% (minus taxes) and taking into account what else you want out of life and how your tax free, after tax, and deferred tax buckets are currently at. I'm making this next part up but this could be considered a "4 bucket strategy," where the 4th bucket is lifestyle because you do have the permission to stop saving more after 25%. 8. Save for future expenses, such as education for children. 9. Low interest debt, debt with a lower interest than that of step 3.
Good work putting yourself out there! If you have full coverage insurance, your deductible will be per event. You could have 2 accidents in a week, and both would be separate deductibles, however that is obviously unlikely. I only mention this because you said something about "6 months," which is how often you pay your insurance premium.
I’m still confused about prepaid future expenses. We save for our kids college and some money for hopefully a down payment on a house for each of them. But this is kind of where I drop off for know what else is a prepaid expense.
It always shocks me when employees don't take advantage of 401K plans, even if starting small, the payoffs are big! And starting off small you barely notice. (Nice quote) 🤪 #6 👍👍 100% Super super important to invest in yourself at a younger age and throughout your life. Fantastic advice with #8! Awesome following your journey and looking forward to 2022 for you! Lots to come! 👍👍
Same I could never not take advantage of it! Thank you James I'm looking forward to your journey on RUclips in 2022 as well! I hope you have a great Sunday!
Lotta good information! Seems like a lot of these guys preach the same stuff, but at the same time, it is good information and stuff that we should all do and take advantage of.
Overall, good video. One note: Employer matches are only "your money" once you are fully vested (could be 5+ years, could be right away). Otherwise, if you leave the company, you only get the vested amount, if any.
Since when is going into debt financially responsible? Oh, you like this car that will be worth a shitload less than you'll be paying for it the instant you drive it off the lot? Then hey! Go into debt for it! It'll be responsible!
@@MarkNealJr Agreed. The only debt that is remotely responsible is a mortgage. Everyone has to have somewhere to live, but no one needs an expensive car. My current car cost 3000$ and my wife and I paid cash for it. Owned it before I paid the taxes and license fees. Debt sucks ass.
Love it! We were really excited to see this video!
Thank you for watching and for all of the wisdom! I tell a lot of my friends (and younger brothers) to watch your show!
Clarification (I have not taken their course either but have learned these from their videos):
1. Deductibles Covered means that you have enough liquid financial reserves to cover the largest of your three deductibles. This is a bare minimum that only considers 1 of the 3 events (car, home, health), but at least covers the most expensive of these deductible amounts.
2. Employer Match
3. High Interest is 6% or higher if you're in your 20s, 5% or higher in your 30s, 4% or higher if you're in your 40s. By your 50s you want to be debt free with the possible exception of your mortgage. However, if you still have a mortgage you are not allowed to call yourself "financially independent."
4. 3-6 months of financial reserves will differ from person to person depending on if and/or how much others depend on your income and how easy it will be for you to find a new job.
5. Roth IRA and HSA would range from contributing $0.01 to one of these accounts all the way up through maxing both of these accounts annually.
6. Maxing out your retirement accounts means taking advantage of other retirement accounts available to you up to either the max of what you can contribute or until you are saving 25% of your gross income for retirement, whatever happens first.
7. Hyper Accumulation is the three bucket strategy. If you have maxed out your available retirement accounts and are not yet saving 25% of your gross income, then you save the remaining of the 25% in a taxable brokerage. If you are saving 25% but have not maxed out your retirement accounts because you do not have a super high income, you can choose to continue putting more into your retirement accounts beyond 25%, put into a brokerage beyond 25%, or move on to step 8 or 9 at your discretion. You should not go out of your way to increase your lifestyle for the sake of it if you do not actually want to spend more money, but you do have the grace to stop saving more for retirement once you hit 25%, even if you have not literally maxed out your retirement accounts yet. Technically, step 7 can be saving anywhere 25% up to 100% (minus taxes) and taking into account what else you want out of life and how your tax free, after tax, and deferred tax buckets are currently at. I'm making this next part up but this could be considered a "4 bucket strategy," where the 4th bucket is lifestyle because you do have the permission to stop saving more after 25%.
8. Save for future expenses, such as education for children.
9. Low interest debt, debt with a lower interest than that of step 3.
Thank you for the comment!
Good work putting yourself out there!
If you have full coverage insurance, your deductible will be per event. You could have 2 accidents in a week, and both would be separate deductibles, however that is obviously unlikely. I only mention this because you said something about "6 months," which is how often you pay your insurance premium.
Thanks James! That is a good point
I’m still confused about prepaid future expenses. We save for our kids college and some money for hopefully a down payment on a house for each of them. But this is kind of where I drop off for know what else is a prepaid expense.
It always shocks me when employees don't take advantage of 401K plans, even if starting small, the payoffs are big! And starting off small you barely notice.
(Nice quote) 🤪
#6 👍👍 100%
Super super important to invest in yourself at a younger age and throughout your life.
Fantastic advice with #8!
Awesome following your journey and looking forward to 2022 for you!
Lots to come! 👍👍
Same I could never not take advantage of it!
Thank you James I'm looking forward to your journey on RUclips in 2022 as well! I hope you have a great Sunday!
Lotta good information! Seems like a lot of these guys preach the same stuff, but at the same time, it is good information and stuff that we should all do and take advantage of.
Overall, good video. One note:
Employer matches are only "your money" once you are fully vested (could be 5+ years, could be right away). Otherwise, if you leave the company, you only get the vested amount, if any.
Thank you and great point!
At my job it's 3 years.
@@kennethguin6974 nice!
Mine is 5 years.
You are doing great bro
I appreciate that bro thank you
very interesting content! maybe a slight suggestion for improvement? a warm welcome to the audience with a cheerful ‘klok’ would be awesome ☺️
Thank you Emmy! That’s a great suggestion, thank you! The audience will get the warm welcome! 😁hopefully I do it right lol!
How old are you?
23?
@@TartarianTopG yes 23
Since when is going into debt financially responsible? Oh, you like this car that will be worth a shitload less than you'll be paying for it the instant you drive it off the lot? Then hey! Go into debt for it! It'll be responsible!
It’s not something I would personally do anytime soon and I work in the automotive industry 😂!
@@MarkNealJr Agreed. The only debt that is remotely responsible is a mortgage. Everyone has to have somewhere to live, but no one needs an expensive car. My current car cost 3000$ and my wife and I paid cash for it. Owned it before I paid the taxes and license fees. Debt sucks ass.