Many people are struggling to save for retirement because of low wages, rising prices, and high rents. Homeownership is becoming out of reach for the middle class, so retirement is no longer just a time to relax-it often means figuring out how to make ends meet, possibly by investing in stocks. When is the best time to invest, and how risky is it?
It seems like there's potential , but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
Having an investment advisor is the best way to go about the stock market right now. I used to depend on RUclips videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
That sounds like a good plan. In the past two years, working closely with a financial market specialist, I've built a six-figure diversified stock portfolio. Now, I aim to diversify even more this year.
Talking about a financial market specialist, do you consider anyone worthy of recommendations? I have about 100k to test the waters now that large cap stocks are at a discount... Thanks
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Storch.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
Its unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $287k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@hasede-lg9hj I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
When we bought our house our payment was 20% of our income. After only 4 years, it is now 30% due to increase in taxes and our homeowners insurance tripling in cost. I am afraid to see how much things increase next year. We did the right things and purchased well under what the banks told us we can do, but now the increases are so fast we won’t be able to keep up. I can see why people would stop contributing to retirement when we are just trying to scrape by today. With the increases in groceries, electric, auto insurance, etc. it is getting harder and harder to do our budget each month and make ends meet. Only people who seem to think inflation isn’t a problem are those with very large salaries who are out of touch with those on the lower end of the pay scale.
@@sharondalynnewton7562 The only people who I hear say inflation isn’t a problem and we just need to cut back on spending are people on TV/YT such as Ken and George. I assume they make higher salaries than the average, so they don’t feel the pinch like the average American. In my community people are struggling and it isn’t because of car payments or debt. The cost of everything is adding up and not everyone can just go get another job. I just hate these type of episodes where the hosts seem to be more judgmental than helpful.
I don’t think they are really being judgmental they are just providing information that may help someone. You are correct that maybe everyone can’t just get a 2nd job but there are many who can and choose not too.
That is a substantial increase and certainly difficult to absorb. I'm curious about the tax part. Did your property tax increase because the home is now appraised at a higher value?
I think the retirement crisis made things worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast.
If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in April due to the crash.
Melissa Elise Robinson, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
@@phuongha3113 I got paid yesterday. Just paid all my bills this morning. Spent ALL my check plus almost $300 on the bills, and got a 2% raise this year even though a loaf of bread costs literally $3 now instead of $1 like 2 years ago. Literally all of my income plus some just on rent on my very cheap apartment, power, water, and insurance on my 15 year old car. I spent over $200 on groceries this month which went on a credit card because I can't afford to pay it in cash like I've done for a long time. It makes me want to go back to drinking.
When times were tough in 2008 my parents who were making min wage as immigrants who didn’t speak English didn’t have to worry because their unmarried kids lived with them and we had multiple incomes under one roof. Now with this economic shit storm, we don’t have to worry because parents live with me and we have one set of bills and I never paid a dime in daycare. Just what my dad saved me in repairs and projects around the house is a small fortune. We stick together and happily take care of each other and will never favor other arrangements over a multigenerational household.
“Poor people pay interest and rich people earn interest “. Good one. We have not paid any interest for about 10 years now. Just one of our money markets is paying us about $1800 a month. I guess that qualifies us as being “rich”. Thanks
Well, our son doesn't earn a lot (and lives with us, one year after graduation), but at our urging, paid off his $15K of loans 1st. Now he has savings and earns interest.
I am 61 years old. I am debt free, have a pension (I am already drawing on), have a 401-K, own rental property, and will take social security at 67. I love my job and plan on working till 70. My job pays me to travel. I can take my other half with me when I travel. I got divorced 24 years ago and was broke and trying not to file for bankruptcy. Now I can do what I want but I don't want much. You have to be satisfied with your life not trying to keep up with Joneses, just keep up with yourself.
So you are going to work till 70 because you love your job? And draw SS at 67 and lose some of it because you are still working. And now you are in your slow/go years. Please retire and take it easy. You can love your job, but they will post your job while you are still cold in the coroner’s office.
@@parkerbohnn What a pathetic and idiotic thing to say. Sure, many people don't, and many more are neutral, but there are still many people who love their work. I may not be one of them, but I've known several who did/do. Then again, we aren't self-entitled, degenerate, parasites, and I've found that does make a monumental difference.
@@parkerbohnn I love my field (Psychology) and I plan on working until I no longer can. I can retire now (financially), however I need purpose in my life and this career gives me purpose. I won't need social security. I am not counting on it being there in 15 years.
Wife & I are on Baby Steps 4, 5 & 6. We own both cars, have a mortgage payment below $1k a month, no credit cards, 6 months full income loss emergency fund. And... we've cut investing over the last 18 months. The margin that got us to debt freedom, the 15% above expenses, the snowball of income left over that we were pouring into retirement, college savings & extra house payments... has completely melted due to inflation, and that's to say nothing of side hustles just to keep up. I dont know Ken, we're stalled.
Six figures is middle class in most cities in America. In many low six figures is lower middle class. America has spending issues but inflation has made the American dream more unaffordable than ever. Dave and his personalities often ignore the reality of the situation. Homes are more than 4x annual income. In Dave’s early life it was 1-2x
Some people shrug and say, “I’ll just work forever.” But that may not be an option. Employers don’t necessarily want you on their payroll. A lot of people develop serious health issues in their sixties and beyond, and are unable to work. They think, “I’ll just go on disability,” but that will give you only enough to afford a nice tent and a sleeping bag because it’s sure not enough to pay for rent. We all need to face the fact that we will almost certainly be unemployed for decades, and no one’s going to rescue us. Plan ahead. Spend less, save, and invest.
And many people just dont expect to live ling enough to get old. As bleak as that is, the logic follows not to save for a retirement if you dont think youll ever reach it (This may be more of a lower class problem than middle class though)
No need to buy a new car, buy used. No reason to send your kid to an $$ college, send them to a community college for the first 2 years, they do well then some them off to some bigger school. Send them to an expensive college and it will take most people years to pay that off, not smart. Be smart with $$, only buy what is needed. Learn a trade, the job won't be shipped to someone in some other country. Good luck to all. ✌
Right. Several years ago I took a friends 10 year old out fishing and I saw a truck that looked awesome. I said I would love to have a truck like that. He asked if I couldn’t afford it and I said no I can afford it in cash plus keep my truck. He said why don’t you buy it. I said you will never save money if you buy everything shinny. I love vehicles but not enough to spend those big dollars. I sleep better at night with money in investments than a brand new fully loaded truck in the driveway
I’ve found that as I make more money, I have less interest in spending it. I’m probably an outlier, but if I can buy friends and family a nice meal at a restaurant, that’s all it takes to make me happy. We live in a hyper-consumerist society. It’s easy to equate success and wealth with material possessions. Too many people fall for the consumer marketing hype.
Out of my entire friend circle, I'm the only one that isn't complaining. I'm also the only one who doesn't have a car payment, the only one who has paid off student loans, the only one with no cc debt, the only one who packs my lunch every day, the only one with teeny mortgage balance. On, and I just increased my Roth contributions.
SO MANY young people don't start saving for retirement when they are young. I am one of them and I am paying the price now. I have mentored a few family members though to stress to them how POWERFUL compound interest can be.
"No one is saving"? Son finished his Masters (Engineering) May 2024. Started job June 2024. Had money to buy new car but chose to continue driving a 6 year old low mileage car. Second check had contribution to Roth 401(k). On his way. Priorities.
My daughter is 19 years old. Just started her first job that offers a 401K. Started her out with a 10% contribution investing in the S&P. She’s on her way!!!
Engineer here. Some people don’t have any support at all from their families. I know a couple of Engineers with +3 years of experience and can’t afford a middle class lifestyle in an area that’s MCOL.
@@techno1386 I was recently sharing info with someone from PHX about inflation. He was getting hit pretty hard. Seems better here in the Midwest. Wishing the best to your aquaintences.
I think income is a huge part of the problem. Prices increased 25-50% over the past 3-4 years while at the same time wages only increased 5-10%. Cost of utilities, food, eating out, insurance, everything increased so much faster than wages.
But Dave and company don't like to admit that with price increases as long as income does not rise as fast at least some people will end up super broke!!!
@@Buzz_Kill71the other choices they have are literally anything else except being dumb. Stop paying interest and instead make it. A good car can be purchased for 7,000 dollars used. If you don’t have the money, buy a beater for a 1,000 and save 500 each month until you move up into it. Building credit, thinking about credit, and paying interest are all things that have nothing to do with people who have no money.
The corporate match is key. The problem is people can’t save because of the higher cost of everything. As long as you put SOMETHING away every paycheck.
Income is like 90% of it. Quit playing. With high income everything is easier and I mean everything. The other 10% is living within your means and investing at an early age.
A lot of the problem is in the US the poor look pretty wealthy these days. Cell phones, flat screen TVs, cable TV, gaming consoles and cars. Growing up it was a big deal when we got cable because that was something for the people that had money.
That’s because most of that stuff has gotten cheaper over time or inflated in price slower than the biggest necessities (healthcare, housing, education, assets). If you can live on a cable subscription then you’ve done quite well relative to inflation over the past 25 years! Cable was like $150/month, in the 90’s/2000s. That’s like $450/month in today’s terms.
@@martinlutherkingjr.5582 Yeah that should be obvious that some things got cheaper vs. major things go more and more expensive compared to incomes.....
The cumulative inflation is what really killing American families and their pockets. From 2020 to 2024, the cumulative inflation has been around 21%. You can go to any inflation calculator, and see for yourself. The inflation may be cooling off as you put it, but that does not erase the cumulative inflation that already happened. This video comes across as condescending and a little bit of empathy goes a long way.
So you would rather listen to someone who is broke and struggling, than someone who is “…out of touch…”? There are several simple suggestions, hard but simple. What someone chooses to do with that information is up to them.
@@CarysCorner Only issue I have with this video is downplaying inflation because of the 3% YoY CPI number. It's incredibly misleading. Rentals and insurance premiums have gone up significantly more than this which hits the hardest and is simply breaking budgets. If you were already cutting back since Covid and haven't increased your income by 25%-30% minimum (not an easy ask), then inflation is beating you, and you are either slowly depleting your emergency fund or going more in debt.
@@RyChOr2005 completely agree with you on the inflation number. Not sure where CPI is getting 3%. Our grocery bill alone is at least 2x that and in some cases more.
I cut back my 401k after realizing that after 5 years, I had made more gains with half the money on my personal trades than I did with 401k in 14 years. I pulled my 401k contributions back to 10% and invest the extra pay personally.
401ks are a scam , you don’t make back what you lose over the long run. Stock market is so Volatile people don’t recover their losses. The world is too unstable to rely on old investment theories, they don’t apply with today’s challenges.
You realize most 401k plans let you pick the investments held within them, right? Plus, they are tax advantaged, so you not only need to outperform the 401k investment, you need to outperform the tax benefit as well (save on income and capital gains). The reason to "personally" invest is you want to use the money before you retire, and nothing wrong with that, or you have the rare 401k that gives you bad investing options. I just struggle to see investing outside the 401k as a better vehicle for returns.
It sounds like the problem is what you’re invested in. Your 401k provider should have a self directed option. Trading is rarely sustainable unless that is your full time gig and you’re world class at what you do.
I worked in nursing homes for 8 years as a nurse. People please take the time and energy to save for the future. NO ONE deserves to live in a nursing home esp post COVID, they are not safe. Imagine sharing a room with a stranger, you can smell their feces, you may have to wait days or weeks to get a shower, the staff changes daily due to facilities hiring agency staff because they can’t keep regular workers. It’s a horrible way to live and it’s not just 70+ year olds, there’s people in their 50s and 60s stuck in nursing homes because they are super ill (usually due to diabetes, drug and alcohol use, history of smoking and losing limbs) and have NO money. Take care of your self and your finances and focus on having healthy relationships….
My Dad is gone to heaven now.... His quote to me was, Do you plan to live past 65? Do you want to be old? If your answer is below 65 spend every dime you get with maybe the exception of an emergency fund, Enjoy your life but if you want to live you have to prepare for retirement and even then we still don't have any guarantees.. If you are young get a new car ... Live .... If you are 38 take that trip out of the country.... Live... But ask yourself if you want to be old.
Being old is typically better than being dead. Just buy what you need that is functional instead of wasting your time on esthetics. People don’t need $60k cars, there are decent safe ones for $25-$30k new.
At 56 I am staring at the light at the end of the tunnel. Is it a train, or the way out? By knocking out an extra 20 principal payments each year on my mortgage and maxing my ROTH 401k... I think I can see sunshine.
We reached our retirement saving goals years ago because we "over saved" and lived below our means. We now put our money in an Health Savings Account, but spend more on vacation, too.
What you need to do to buy a home now is either get married and have dual incomes or buy a 2 bedroom condo and rent out a bedroom to a roommate if you are single to help pay for the mortgage. Almost nobody can get out of school, save 20% down payment and pay mortgage, insurance, property tax, any HOA fees, repairs and maintenance fees. My wife and I needed our dual income to buy a home back in 2002. It is even worse now.
12.4% is what SS takes and if you make $35k/year for your entire working life it will pay you $1500/month in retirement. If you were allowed to have that in a private account that would be $361/month invested and over a working lifetime of ~45 years you would have $3 million. Withdrawing 4% would give you $10,000 monthly income in retirement, plus inflation adjusted growth and after 20 years of retirement the balance would be north of $10 million.
This. My idea has always been if you are actively investing in a retirement account you should not be forced into pay SS. The average Joe can do better in a target or index than the government. Unfortunately this will never happen because government likes to take that margin you just explained.
"You made the choice to buy more house than you could afford!" In many markets there are literally no starter homes available under $250k. And at today's interest rates using their advice of a 15 year fixed rate mortgage with 25% of after-tax income going towards the payment, you need a gross income of around $90,000 or greater to make that work. This is peak boomer talk.
This show has some great advice but they're so unbelievably out of touch with what younger people are facing. Average home prices in my area went from 380k to nearly 650k over the past 4 years. My salary has increased over the past few years and I wouldn't be able to afford the house I'm right now if I had to buy today
Agreed! We live in a below average community. Shootings have become a norm. The houses around us are selling for $300,000. We couldn't afford to move into our area if we were just starting out.
@@neolithic3you have the option to stay and not own or move and buy a home. It’s the choice of what financial priorities you have vs lifestyle. We moved out of Calif 14 years ago and it was hard leaving family and friends behind but it’s the best decision we have ever made. Some family followed and some stayed. The ones who stayed who are millennials are paying $$$$$$ to rent and are approaching their 40’s with very little savings and no retirement savings.
There is also the issue of banks not lending if the homes are affordable, which is largely due to government interference. Many people can't afford to buy a $45,000 home with cash, outright, but many lenders will not fund a mortgage that small. It's exceptionally difficult to get a straight answer, if you can get anyone to answer at all, but from what I can find, it's mostly due to government regulations on the banks and homebuyers, government mortgage guarantee regulations, government regulations on insurance, and government regulations on bundling and selling mortgage debt. Most of that is federal, but there is also state and county (especially county, because affordable doesn't give them enough of your property tax dollars). The single greatest expense crushing the necks of Americans is the monstrously bloated and all-consuming government that too many stupid Americans are vociferously screaming for.
inflation may be slowing down, but we’re not in a deflationary period yet. so my gallon of milk is no longer increasing every other week but it’s still $2.37 higher than it was two years ago. And that’s the same for about everything that I buy which lot of things are now coming in smaller quantities. That pound of coffee that I buy is now 12 ounces and it’s more expensive than what a pound was two years ago. I think the everyday prices for things are just at a point where most people are really struggling
@@Corn_Pops_Rusty_Razor I believe you’re correct. I’m also unsure what sort of issues a deflationary would have, but it would probably have some unpleasantness. There’s new normal really stinks.
You are not wrong but as consumers “we” have to figure out new ways to make our finances work. Whether it’s doing without things we don’t really need, staying at home more often, etc. it’s “our” job to figure it out. It’s heartbreaking to see people say they are struggling but don’t make any effort to improve things. OK I’m done 😊
The fed has said clearly their goal is not to bring prices back to where they were previously but instead slow the rate of increase. This should be no surprise.
We are net worth / baby step millionaires with 75% equity in our home. We had to pause our contributions after a job loss. 6 months of not contributing has been discouraging, but we will get back to it and make up for lost time when we get back to full employment.
Every immigrant I knew also lived with others and split major bills like housing..... Just saving on the big things first makes a huge difference in doing ok...
I already knew what they'd say. Things actually aren't unaffordable, everyone at the same time is just choosing to flush their retirements in the toilet.
Retired really early 6 years ago and when nosey people ask what do I do, my reply "whatever I want to" I travel the world whenever I feel like, my last trip was 5 weeks. Japan 🇯🇵, Hong Kong China 🇨🇳, Seoul South Korea 🇰🇷, Bangkok & Pattaya Thailand 🇹🇭, and Dubai UAE 🇦🇪 then back home. I figured out a long time ago that my money is a better employee than I ever was or could be so I let my money work for me and not me working for money. 🤗🤗
These guys are unbearable to listen to. They say to be independent, then retire, and then say retirement isn't everything its cracked up to be. I'm going to do what I want now with my life. Screw these guys. I'm here to make an f ton of money spend it before I kick the bucket and do things I enjoy.
I'm single. Other than a $170/month car payment that ends in 12 months I'm 100% debt free. Make between 70-80k a year in Miami. Own my small crappy house outright (needs a new kitchen as drawers and cabinets are literally falling apart. 401k is less than 100K and I've already told myself I'll never be able to retire.
@recabitejehonadab2654 Markets always "fall" and rise...ebb and flow.....wax and wane. Also, companies STILL pay out a dividend even during down markets. You are incorrect.
@@angieharris8015 companies with well covered dividends and good net income margins, that still pay out dividends during down markets? That’s what it’s all about right there!
@@angieharris8015He’s talking about a “failing” stock market, not a falling stock market. Eventually things could fail and never recover their purchasing power which is why it’s important to diversify into assets outside the system. It’s impossible to tell if that will happen in 5 or 50 years though.
Despite me losing a side gig job that was giving me nice $ with the work I put in, I am not slowing down retirement contributions from my main job. When you have a plan, stick to it to get the goals you want. The market today is looking bad but it will bounce back in time. Make the moves today to thank your future self.
0:44 Inflation might have cooled but the prices did NOT go back down!! In fact it is still going up, just a lot slower, while salaries remain stagnant!
the problem is that most don't have the knowledge needed to succeed in a challenging economy. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to save or earn a high in these challenging conditions.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
Tax planning is crucial for optimizing investment returns. If not planned well, taxes can eat into your gains and significantly affect your portfolio growth.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skills and knowledge
You need a financial planner, Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
I've been making a monthly contribution to an IRA for close to 20 years. Im 45 and was hoping to bump up the monthly amount by this point, but that has proved challenging. Once the family car is paid off rather than trading it in for something newer I think I'll allocate some of what our monthly payments are and up the monthly IRA contribution. I should have a lot more in the IRA, but at least I have a chunk. My house will be paid off in 10 years and my wife and I balance the C.C.'s every month. Having enough when I'm 65 seems daunting though.
Let's not also forget the crazy price of anything medical. If you have ever had a large bill because of deductible it is hard to dig out of more debt. Let alone how much comes out of your paycheck. Yes inflation has happened and prices are high and did not come down. So you can live below means but there are other factors that hinders some of us getting there in a shorter timeframe. You did mention taking care of older parents as well. I am in that boat too. How can I go get a part-time along with full time one taking care of parents, let alone the paying for stuff for them. Just saying. Other than that I agree with all they are saying. My mother was an immigrant and did well with hard work.
The problem is price gouging! Esp by Insurance companies. I’ve lived in the same house for 16 years but it costs more today to live it in bc of insurance, utilities, taxes, and maintenance. You guys are talking crazy! You’re ignoring the pressing issues we are dealing with. My kids go to public school and it’s expensive. Their senior year cost of graduation is awful. Just to participate in the they have to rent the cap and gown $125.00. School lunch went up and it is NOT cheaper to make at home! For you all not to acknowledge the current crush of expenses is just sad.
Most of it appears that way because the currency their prices are denominated in a currency that has lost 50% of its value over a short period of time.
Greedy stock market. They took all the money. Government is just pathetic. Joe Biden cut all small and medium size cars because they do not make them any more. What choices do you have? Do not watch TV anymore and do your own math.
Exactly right on this video! People can make the changes but they many times will not do so. Cutting expenses is easier than increasing income in my opinion. Here are three fast examples. 1. Food. Chicken goes on sale for a buck many times, buy and freeze. Pork is $4. Beef $8. These are just protein and fat. So just eat chicken! Cabbage is cheaper too than many other veggies. 2. Stop eating out period. Yes, hard to do that. I spent $30 plus on eggs and sausage yesterday eating in a cafeteria. Eggs at most groceries cost maybe 15 cents each on sale. Today, Safeway has a dozen for 1.79. Do the math! 3. Many people are shopping for school supplies and clothes for their kids. I suggest shopping for them on Amazon or the local Goodwill. Once these clothes get washed and dried, there is zero difference than buying at some local store. Most of my clothers are over 5 years old, and get washed weekly. They look great!
Cutting expenses will only get you so far, it’s not a good long term strategy unless you’re already spending an absurd amount. You’re better off switching from a job that pays $150k instead of $50k.
$900/month doesn’t work with IRS restrictions. Correct me if I’m wrong but I thought max contribution allowed was about $7000 for people under 50? I’m only stating this cause I am 45 and I’m not so sure I can get to this goal. Maybe close but not over 1mil.
About $7000 is the max for an IRA but for a 401K, the max is $23000 for 2024. For people older than 50, they can make a catch up contribution of $7500 which totals $30,500. This is all without including the employer match
Right out the gate yall just immediately dismiss inflation and rising cost of living and blame it on cars. What to continue the trend of being detached from reality and out of touch.
You are right on the mark with "This may not be an income problem." I agree with that, because people today do not understand the difference between "Wants" and "Needs". When it gets to the point where you need that new phone every 2 years and new car every 3, along with cable packages plus streaming services, there is a disconnect there.
Amen !! Credit has gotten out of control because it is way to accessible. Couple that with something social media and everyone things they “deserve” it or are “entitled” to it.
I'm moving away from Ramsey stuff. This is like two trainers "helping" obese people lose weight by ripping on them in the gym when they're not there while they nod their heads at one another and make sad eyes about the condition of the world today. Guys, for the normal person, it's really getting hard out there.
I agree with you I was all aboard the Ramsey train I budget make good money have low bills but it's still hard to stay a float but here at Ramsey we are still the problem bec we can't get ahead of it all. Even following the steps
Even if you get away from their social media, stick with their baby steps plan and you will be good. If you walk away and don’t work the plan (give up) you will regret it
We thought our situation was hopeless. Then we started following the Baby Steps and after 5 years of misery, we paid off all of our debt and mortgage. We kept the frugal mindset and have continued saving and investing the money we were previously using to pay off debt. We are less than 2 years from becoming BS Millionaires. Our friends and neighbors think we are broke. We are also putting off retirement to increase our SS benefit. I want to retire just as much as the next guy, but the next guy is not responsible for my retirement upkeep.
Im 50. $900 a month. Are you kidding me. I make 50k as a single person. I have no debt. The price of everything has gone up so much I'm struggling. I'm not a huge spender, only necessities. My electric bill went up, my water bill went up, my gas bill went up, etc. If I had a mortgage or rent I would be screwed and saving for my retirement would be nill. These guys are out of touch.
Why not get a roommate? Understand that single people have the hardest time getting financially ahead in life. There is no real benefit in living alone unless you can afford it.
They sure are. The whole Ramsey system revolves around the false idea that everyone is lazy and undisciplined. That is just not always the case and don’t let them convince you it’s true.
@earthring but why is there a neccesessity for someone to somehow find another 900 $ when 4 years ago we didn't have to have a 2nd job out of necessity or survival
People need to get their priorities straight. Need to be smart with money. Need to be OK with the idea of working your way up the ladder. I see a lot of new grads coming out of school in the last five years or so and they want the big house, the fancy car, two or three kids, vacations, etc. And they wanted all right now. They’re not willing to live in a small house and drive an old car and stay home. So they’re in debt up to their eyeballs and then they say how life is so tough. I know another person that graduated college, started working immediately in his field. Lived in an apartment above someone’s garage and was very frugal. His goal was to pay off his student loans ASAP. He didn’t eat out. He brought his lunch from home, didn’t blow money on Starbucks, etc. But he was able to pay off his student loans. And now he’s saving for a down payment on a house.
I was shocked that our HR have to roll out mandatory contribution for retirement account with company match because only 49% of employees were contributing it voluntary. That’s shocking that someone willingly let go of 5% income (our company match the contribution 1-1 up to 5% of income).
I mean I doubt half the middle class is buying 60k cars. Problem is simple, it’s not just inflation right!!! But it’s also the income is shit. No one is getting paid to keep up with inflation.
Do these guys understand that inflation is compounded too? Yes, the rate of inflation is down, but prices are still going up and are way up compared to 4 years ago. It's probably not a bad thing if people are pulling back on savings in order to avoid debt and/or make ends meet. If it's ok to pause to get out of debt it must be good to pause to avoid debt.
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Amber Michelle Smith” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
Regardless of lifestyle choices, its just harder to afford the same amount of what people are used to. Its hard to predict the future and most of the middle class didn't know inflation was going to be this tight this year.
When I finished FPU I experienced lifestyle creep. However, the creep was funding the 401k, funding the IRA, funding the 529, saving for another paid for in cash car, stashing money to pay off the house early. My expenses are much higher now than they used to be partially because of inflation but also because of the massive amount of saving every month.
It's hard to invest when you need to put food on the table for your children and your rent is 50% of your monthly income. The system is broken, and something needs to change. If you bought a house back in 2010, good for you! Alot of us dont have the blessings of a low monthly payment to have a roof over our heads. I still somehow invest 10% of my income into my 401k and I work hard every day. I'm done blaming myself for this messed up world.
8-11% is a pretty generous and not as common return. I will say though, in finding these financial guides, my wife and I have been able to live comfortably, all while generating returns and making additional payments on things. An emergency fund just made it so we paid for roof repairs cash. It is possible, the mindset is everything though
My dad was an immigrant (due to the Vietnam war) who ended up doing finance. When i was a kid growing up through the early 2000's, he would tell me stories about guys/peers who ended up jumping from buildings because they had made big bets and "lived it up". When the house of cards came crashing down because of Y2K, it was a stark reminder that if you live beyond your means and not prepare for the rainy day, you might end up like one of those guys.
Im 27 single make 160k (salary+rent) and live with my parents, rent out my house, and put 5k away into retirement each month. Ramsey would tell me i need to move out, get my own place and increase all my expenses. Why the hell would I listen to that? That's why I take everything these guys say with a grain of salt
@@neolithic3 Yea I didn't ditch my elderly parents so I can take care of them. Glad I wasn't raised with your values. Lucky me I get to spend time with my parents and I get to retire a multimillionaire with multiple properties 🤣 enjoy paying 2.5k a month for a studio
@20f124 I'm just hoping you are paying a substantial amount of your parents bills so they don't have to. For you to live rent free, pay no utilities, etc while your parents use their money & savings just so you can invest for retirement is just absurd
Those who cast off restraint will perish. Self discipline, self control, and long term thinking are at an all time low so it's no wonder retirement saving is at a low, marriages are at a low, divorce rates are at a high, and moral clarity is at a low.
I never did understand when somebody says do you rent or do you own a house and the person that’s asked this question says oh I own my house when in reality they make payments to the bank they really don’t own your house it should be asked do you rent, do you make a mortgage payment or do you own your house outright free and clear? Seldom do I ever hear that question asked in that way.
I think it's about your upbringing and yes I agree culture is a good term for that. Not dependent on your race at all. Just dependent on your parents' attitudes and how they raised you. The attitude "I deserve" is a wealth killer. People who end up with money have the attitude "I will do what it takes". That includes living in poor conditions, driving old cars, no vacations, etc. Whatever you need to do to make ends meet.
I say it has a lot to do with wages not going up. Inflation has gone down to normal levels but that doesn't mean deflation is happening. With everything going up, there is only so much that can be cut out or reduced.
You guys sound out of touch with reality. The middle class is getting squeezed. We have 987 programs to help low income people and children. Lower cost housing, free food, free college. The rich have historically low tax rates. The middle class gets squeezed. They pay full cost for exponentially increasing housing costs, they pay for all of their food, they need to bleed to support their kids going to college or their kids go into debt. Their pay increases also didn’t keep up with inflation
I'm 35 this year, and barely make $50k a year. My rent, for a 1 br, 1 bath apartment is $975/month, and my car payment is $270. Yet somehow, I still feel like I will Never get there, to being 45 years old with a salary of 6 figures. They make it sound like $900 a month is easy. It's Not, when people don't make that 6 figures a year!
I’ve been hearing for a few years that I and those younger than me will work until we die, so people are wondering why save for a future that will never come. Still contribute the max, you can always cash it out and pocket the employer deduction, even with an early withdrawal penalty you still get more than if you’d just saved that few percent on your own.
I'm half a million in debt living in a one bedroom apartment and driving a 20-year old Toyota. Im pretty sure I'm not surviving to retirement, but I certainly haven't saved for it. (45).
Best cost saving tip: get a vasectomy. That small co pay can save you hundreds of thousands in child care costs. It’s what I did at age 28. Today at 44, my wallet is full of disposable income and I still save for retirement. Win-win
Something got to give, if you aren’t making a higher wage and inflation is going up you have to make up the difference. So cuts to your lifestyle or your future.
![Megan Thee Stallion - Neva Play (feat. RM) [Official Video]](http://i.ytimg.com/vi/TpYTyAaTRts/mqdefault.jpg)
Many people are struggling to save for retirement because of low wages, rising prices, and high rents. Homeownership is becoming out of reach for the middle class, so retirement is no longer just a time to relax-it often means figuring out how to make ends meet, possibly by investing in stocks. When is the best time to invest, and how risky is it?
It seems like there's potential , but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points
Having an investment advisor is the best way to go about the stock market right now. I used to depend on RUclips videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Could you recommend your advisor? I'll be happy to use some help.
Her name is 'Rebecca Nassar Dunne” Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
That sounds like a good plan. In the past two years, working closely with a financial market specialist, I've built a six-figure diversified stock portfolio. Now, I aim to diversify even more this year.
Talking about a financial market specialist, do you consider anyone worthy of recommendations? I have about 100k to test the waters now that large cap stocks are at a discount... Thanks
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Storch.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
You trade with Katherine Storch too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
Its unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $287k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@hasede-lg9hj I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@hasede-lg9hj this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing
When we bought our house our payment was 20% of our income. After only 4 years, it is now 30% due to increase in taxes and our homeowners insurance tripling in cost. I am afraid to see how much things increase next year. We did the right things and purchased well under what the banks told us we can do, but now the increases are so fast we won’t be able to keep up. I can see why people would stop contributing to retirement when we are just trying to scrape by today. With the increases in groceries, electric, auto insurance, etc. it is getting harder and harder to do our budget each month and make ends meet. Only people who seem to think inflation isn’t a problem are those with very large salaries who are out of touch with those on the lower end of the pay scale.
Not sure what a large salary is because heck I definitely feel the pinch of the increases! Folks have to go back to having roommates to survive.
@@sharondalynnewton7562 The only people who I hear say inflation isn’t a problem and we just need to cut back on spending are people on TV/YT such as Ken and George. I assume they make higher salaries than the average, so they don’t feel the pinch like the average American. In my community people are struggling and it isn’t because of car payments or debt. The cost of everything is adding up and not everyone can just go get another job. I just hate these type of episodes where the hosts seem to be more judgmental than helpful.
I don’t think they are really being judgmental they are just providing information that may help someone. You are correct that maybe everyone can’t just get a 2nd job but there are many who can and choose not too.
@@sharondalynnewton7562stop acting like a fool ! Large salary are anything over 150K +
That is a substantial increase and certainly difficult to absorb. I'm curious about the tax part. Did your property tax increase because the home is now appraised at a higher value?
I think the retirement crisis made things worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast.
If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in April due to the crash.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Melissa Elise Robinson, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
I just googled her now and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Inflation cooled but the high prices stayed….no deflation….that IS the problem…
Yes. If people stop spending, prices will fall.
@@phuongha3113 I got paid yesterday. Just paid all my bills this morning. Spent ALL my check plus almost $300 on the bills, and got a 2% raise this year even though a loaf of bread costs literally $3 now instead of $1 like 2 years ago. Literally all of my income plus some just on rent on my very cheap apartment, power, water, and insurance on my 15 year old car. I spent over $200 on groceries this month which went on a credit card because I can't afford to pay it in cash like I've done for a long time. It makes me want to go back to drinking.
100% Right
Prices in the midwest have dropped. Except housing.
deflation is bad, read an economic textbook
When times were tough in 2008 my parents who were making min wage as immigrants who didn’t speak English didn’t have to worry because their unmarried kids lived with them and we had multiple incomes under one roof. Now with this economic shit storm, we don’t have to worry because parents live with me and we have one set of bills and I never paid a dime in daycare. Just what my dad saved me in repairs and projects around the house is a small fortune. We stick together and happily take care of each other and will never favor other arrangements over a multigenerational household.
“Poor people pay interest and rich people earn interest “. Good one. We have not paid any interest for about 10 years now. Just one of our money markets is paying us about $1800 a month. I guess that qualifies us as being “rich”. Thanks
Janet Yellen is paying my mortgage, too.
Right. I’ve always said you only make so much in your lifetime…. How much do you want to give to the bank. Keep up the great job.
Well, our son doesn't earn a lot (and lives with us, one year after graduation), but at our urging, paid off his $15K of loans 1st. Now he has savings and earns interest.
Have fun being stolen from via inflation
That's a big chunk of change at 5%.
I am 61 years old. I am debt free, have a pension (I am already drawing on), have a 401-K, own rental property, and will take social security at 67. I love my job and plan on working till 70. My job pays me to travel. I can take my other half with me when I travel. I got divorced 24 years ago and was broke and trying not to file for bankruptcy. Now I can do what I want but I don't want much. You have to be satisfied with your life not trying to keep up with Joneses, just keep up with yourself.
So you are going to work till 70 because you love your job? And draw SS at 67 and lose some of it because you are still working. And now you are in your slow/go years. Please retire and take it easy. You can love your job, but they will post your job while you are still cold in the coroner’s office.
@@tonylevine2716IMO it’s better he does what he wants to do unless he’s living in an authoritarian state.
No one loves their job and in reality you hate your job.
@@parkerbohnn What a pathetic and idiotic thing to say. Sure, many people don't, and many more are neutral, but there are still many people who love their work. I may not be one of them, but I've known several who did/do. Then again, we aren't self-entitled, degenerate, parasites, and I've found that does make a monumental difference.
@@parkerbohnn I love my field (Psychology) and I plan on working until I no longer can. I can retire now (financially), however I need purpose in my life and this career gives me purpose. I won't need social security. I am not counting on it being there in 15 years.
Wife & I are on Baby Steps 4, 5 & 6. We own both cars, have a mortgage payment below $1k a month, no credit cards, 6 months full income loss emergency fund. And... we've cut investing over the last 18 months. The margin that got us to debt freedom, the 15% above expenses, the snowball of income left over that we were pouring into retirement, college savings & extra house payments... has completely melted due to inflation, and that's to say nothing of side hustles just to keep up. I dont know Ken, we're stalled.
What’s your house hold income and family size?
@@Zombiebeast1995 Just under $50K a year. Family of 3.
@@CYCO1631 you’re doing great then! On the spending side. Just have to work to get the income a little higher if possible, that would go far
Six figures is middle class in most cities in America. In many low six figures is lower middle class. America has spending issues but inflation has made the American dream more unaffordable than ever. Dave and his personalities often ignore the reality of the situation. Homes are more than 4x annual income. In Dave’s early life it was 1-2x
$900k is not middle class, even in New York.
Some people shrug and say, “I’ll just work forever.” But that may not be an option. Employers don’t necessarily want you on their payroll. A lot of people develop serious health issues in their sixties and beyond, and are unable to work. They think, “I’ll just go on disability,” but that will give you only enough to afford a nice tent and a sleeping bag because it’s sure not enough to pay for rent. We all need to face the fact that we will almost certainly be unemployed for decades, and no one’s going to rescue us. Plan ahead. Spend less, save, and invest.
And many people just dont expect to live ling enough to get old. As bleak as that is, the logic follows not to save for a retirement if you dont think youll ever reach it
(This may be more of a lower class problem than middle class though)
Over 55 with a full-time job is a luxury in 2024.
What if people don’t want to live until they’re old?
@@martinlutherkingjr.5582why not ?
@@trustnun_staylow The reasons probably vary but some people don’t want to. Probably health span concerns.
Cook at home and don't get caught up with the social media consumerism.
No need to buy a new car, buy used. No reason to send your kid to an $$ college, send them to a community college for the first 2 years, they do well then some them off to some bigger school. Send them to an expensive college and it will take most people years to pay that off, not smart. Be smart with $$, only buy what is needed. Learn a trade, the job won't be shipped to someone in some other country. Good luck to all. ✌
"We're not here for the shiny stuff. We're here for the freedom stuff." PLEASE make that a bumper sticker for sale at Ramsey.
Right. Several years ago I took a friends 10 year old out fishing and I saw a truck that looked awesome. I said I would love to have a truck like that. He asked if I couldn’t afford it and I said no I can afford it in cash plus keep my truck. He said why don’t you buy it. I said you will never save money if you buy everything shinny. I love vehicles but not enough to spend those big dollars. I sleep better at night with money in investments than a brand new fully loaded truck in the driveway
“Drive the cheapest car your ego can afford”
@@davidhughes6048 That's me, for sure! My dog is worth more than my car.
I’ve found that as I make more money, I have less interest in spending it. I’m probably an outlier, but if I can buy friends and family a nice meal at a restaurant, that’s all it takes to make me happy. We live in a hyper-consumerist society. It’s easy to equate success and wealth with material possessions. Too many people fall for the consumer marketing hype.
Out of my entire friend circle, I'm the only one that isn't complaining. I'm also the only one who doesn't have a car payment, the only one who has paid off student loans, the only one with no cc debt, the only one who packs my lunch every day, the only one with teeny mortgage balance. On, and I just increased my Roth contributions.
Great job! Keep up the good work.
Broke people pay interest.. Rich people earn interest!!Drop the mic!!!
Dividends &rental payments! appreciation is the icing on the cake for me!
That’s true unfortunately many are in the poor category 😢
It’s better for them to earn unrealized capital gains though
Keep your money in the bank.
@@miketheyunggod2534 Bad idea to do that with more than is necessary
SO MANY young people don't start saving for retirement when they are young. I am one of them and I am paying the price now. I have mentored a few family members though to stress to them how POWERFUL compound interest can be.
"No one is saving"? Son finished his Masters (Engineering) May 2024. Started job June 2024. Had money to buy new car but chose to continue driving a 6 year old low mileage car. Second check had contribution to Roth 401(k). On his way. Priorities.
Engineering.... as a fellow Engineer we don't represent the "average" American.
My daughter is 19 years old. Just started her first job that offers a 401K. Started her out with a 10% contribution investing in the S&P. She’s on her way!!!
@calvinhaynes5781 my dad helped me set up a retirement account when I was 19 too. It was a life saver.
Engineer here. Some people don’t have any support at all from their families. I know a couple of Engineers with +3 years of experience and can’t afford a middle class lifestyle in an area that’s MCOL.
@@techno1386 I was recently sharing info with someone from PHX about inflation. He was getting hit pretty hard. Seems better here in the Midwest. Wishing the best to your aquaintences.
I think income is a huge part of the problem. Prices increased 25-50% over the past 3-4 years while at the same time wages only increased 5-10%. Cost of utilities, food, eating out, insurance, everything increased so much faster than wages.
But Dave and company don't like to admit that with price increases as long as income does not rise as fast at least some people will end up super broke!!!
People be buying vehicles at $30k with a 9.24% interest or 90% of what they make in a year but won’t take the initiative to look at finances
What other choices do they have? Don't the greedy car makers and banks take any blame? BTW, a new car at 30k is probably a crap car.
@Buzz_Kill71 used private sales start are $6000
@@Buzz_Kill71the other choices they have are literally anything else except being dumb. Stop paying interest and instead make it. A good car can be purchased for 7,000 dollars used. If you don’t have the money, buy a beater for a 1,000 and save 500 each month until you move up into it. Building credit, thinking about credit, and paying interest are all things that have nothing to do with people who have no money.
@@douglassmith9445 just.... Bad.
@@Buzz_Kill71I get your point but that is like blaming restaurants for being overweight.
The corporate match is key. The problem is people can’t save because of the higher cost of everything. As long as you put SOMETHING away every paycheck.
Prices don't fall prices rise we'll have the same conversation next year and 5 years from now
@@davidbrooks8809 2% is one thing, 10% is another. Wage growth versus CPI
Income is like 90% of it. Quit playing. With high income everything is easier and I mean everything. The other 10% is living within your means and investing at an early age.
Quit playin games wit mah mindddd
Exactly if you’re making over 150k you have no excuse at all. That’s considered high income
My wife and I will have 4 million if we stopped investing by age 40 for retirement, both of us never made a buck more than 100k each for last 22 years
And one child with one on way. It’s about consistency and hard work . There are ups and downs but it’s possible
@@FinanciallySavvyPT2012 $200K family income. Must have been tough. Congrats!
You people don't know. Rent now is 50% of my paycheck. Back then it was way less.
Get some roommates
Yeppp ppl don’t care about this but say “it’s not inflations problem it’s you for not working 70 hour weeks”
@@fvw88 he may live in a small studio apartment. You want him to share the bed?
@@neolithic3reduce expenses or increase income, two choices, or do neither and just whine about it.
Clueless.
A lot of the problem is in the US the poor look pretty wealthy these days. Cell phones, flat screen TVs, cable TV, gaming consoles and cars. Growing up it was a big deal when we got cable because that was something for the people that had money.
That’s because most of that stuff has gotten cheaper over time or inflated in price slower than the biggest necessities (healthcare, housing, education, assets). If you can live on a cable subscription then you’ve done quite well relative to inflation over the past 25 years! Cable was like $150/month, in the 90’s/2000s. That’s like $450/month in today’s terms.
@@martinlutherkingjr.5582 Yeah that should be obvious that some things got cheaper vs. major things go more and more expensive compared to incomes.....
The cumulative inflation is what really killing American families and their pockets. From 2020 to 2024, the cumulative inflation has been around 21%. You can go to any inflation calculator, and see for yourself. The inflation may be cooling off as you put it, but that does not erase the cumulative inflation that already happened. This video comes across as condescending and a little bit of empathy goes a long way.
Thank you so much for addressing the REAL problem. People living way, way beyond their means. Huge SUVs, houses and full shopping carts everyday.
That old adage; it's not what you make, it's what you spend. Living within one's means is the number one "secret" to financial comfort and stability.
No, it’s what you keep in assets that matters.
These people are so out of touch it’s insane. Most are struggling to eat and have shelter.
BOO HOO
So you would rather listen to someone who is broke and struggling, than someone who is “…out of touch…”? There are several simple suggestions, hard but simple. What someone chooses to do with that information is up to them.
@@CarysCorner Only issue I have with this video is downplaying inflation because of the 3% YoY CPI number. It's incredibly misleading. Rentals and insurance premiums have gone up significantly more than this which hits the hardest and is simply breaking budgets. If you were already cutting back since Covid and haven't increased your income by 25%-30% minimum (not an easy ask), then inflation is beating you, and you are either slowly depleting your emergency fund or going more in debt.
@@RyChOr2005 completely agree with you on the inflation number. Not sure where CPI is getting 3%. Our grocery bill alone is at least 2x that and in some cases more.
I cut back my 401k after realizing that after 5 years, I had made more gains with half the money on my personal trades than I did with 401k in 14 years. I pulled my 401k contributions back to 10% and invest the extra pay personally.
@@kevinreichert3254 what 401K funds were you investing in?
401ks are a scam , you don’t make back what you lose over the long run. Stock market is so Volatile people don’t recover their losses. The world is too unstable to rely on old investment theories, they don’t apply with today’s challenges.
You realize most 401k plans let you pick the investments held within them, right? Plus, they are tax advantaged, so you not only need to outperform the 401k investment, you need to outperform the tax benefit as well (save on income and capital gains). The reason to "personally" invest is you want to use the money before you retire, and nothing wrong with that, or you have the rare 401k that gives you bad investing options. I just struggle to see investing outside the 401k as a better vehicle for returns.
It sounds like the problem is what you’re invested in. Your 401k provider should have a self directed option. Trading is rarely sustainable unless that is your full time gig and you’re world class at what you do.
I worked in nursing homes for 8 years as a nurse. People please take the time and energy to save for the future. NO ONE deserves to live in a nursing home esp post COVID, they are not safe. Imagine sharing a room with a stranger, you can smell their feces, you may have to wait days or weeks to get a shower, the staff changes daily due to facilities hiring agency staff because they can’t keep regular workers. It’s a horrible way to live and it’s not just 70+ year olds, there’s people in their 50s and 60s stuck in nursing homes because they are super ill (usually due to diabetes, drug and alcohol use, history of smoking and losing limbs) and have NO money. Take care of your self and your finances and focus on having healthy relationships….
My Dad is gone to heaven now.... His quote to me was, Do you plan to live past 65? Do you want to be old? If your answer is below 65 spend every dime you get with maybe the exception of an emergency fund, Enjoy your life but if you want to live you have to prepare for retirement and even then we still don't have any guarantees.. If you are young get a new car ... Live .... If you are 38 take that trip out of the country.... Live... But ask yourself if you want to be old.
Being old is typically better than being dead. Just buy what you need that is functional instead of wasting your time on esthetics. People don’t need $60k cars, there are decent safe ones for $25-$30k new.
@@martinlutherkingjr.5582 YEECH! Being young isn't better than being dead, let alone being old being better.
At 56 I am staring at the light at the end of the tunnel. Is it a train, or the way out? By knocking out an extra 20 principal payments each year on my mortgage and maxing my ROTH 401k... I think I can see sunshine.
We reached our retirement saving goals years ago because we "over saved" and lived below our means. We now put our money in an Health Savings Account, but spend more on vacation, too.
What you need to do to buy a home now is either get married and have dual incomes or buy a 2 bedroom condo and rent out a bedroom to a roommate if you are single to help pay for the mortgage. Almost nobody can get out of school, save 20% down payment and pay mortgage, insurance, property tax, any HOA fees, repairs and maintenance fees. My wife and I needed our dual income to buy a home back in 2002. It is even worse now.
im 25 years old and will come back to my comment in 20 years and update 🙏 can’t wait! 💰
12.4% is what SS takes and if you make $35k/year for your entire working life it will pay you $1500/month in retirement. If you were allowed to have that in a private account that would be $361/month invested and over a working lifetime of ~45 years you would have $3 million. Withdrawing 4% would give you $10,000 monthly income in retirement, plus inflation adjusted growth and after 20 years of retirement the balance would be north of $10 million.
This. My idea has always been if you are actively investing in a retirement account you should not be forced into pay SS. The average Joe can do better in a target or index than the government. Unfortunately this will never happen because government likes to take that margin you just explained.
@@TheNotimprezed very true; 85% (just a guess) won’t invest the money and elderly poverty would skyrocket…
@@calvinhaynes5781 it should still be not optional and not accessible until retirement age
@@calvinhaynes5781 Hey, life is hard. It's a lot harder when you're (they) stupid.
"You made the choice to buy more house than you could afford!" In many markets there are literally no starter homes available under $250k. And at today's interest rates using their advice of a 15 year fixed rate mortgage with 25% of after-tax income going towards the payment, you need a gross income of around $90,000 or greater to make that work. This is peak boomer talk.
This show has some great advice but they're so unbelievably out of touch with what younger people are facing. Average home prices in my area went from 380k to nearly 650k over the past 4 years. My salary has increased over the past few years and I wouldn't be able to afford the house I'm right now if I had to buy today
Where I live, a one-bedroom condo is a million dollars. Houses are several million. These guys are so out of touch.
Agreed! We live in a below average community. Shootings have become a norm. The houses around us are selling for $300,000. We couldn't afford to move into our area if we were just starting out.
@@neolithic3you have the option to stay and not own or move and buy a home. It’s the choice of what financial priorities you have vs lifestyle. We moved out of Calif 14 years ago and it was hard leaving family and friends behind but it’s the best decision we have ever made. Some family followed and some stayed. The ones who stayed who are millennials are paying $$$$$$ to rent and are approaching their 40’s with very little savings and no retirement savings.
There is also the issue of banks not lending if the homes are affordable, which is largely due to government interference. Many people can't afford to buy a $45,000 home with cash, outright, but many lenders will not fund a mortgage that small. It's exceptionally difficult to get a straight answer, if you can get anyone to answer at all, but from what I can find, it's mostly due to government regulations on the banks and homebuyers, government mortgage guarantee regulations, government regulations on insurance, and government regulations on bundling and selling mortgage debt. Most of that is federal, but there is also state and county (especially county, because affordable doesn't give them enough of your property tax dollars). The single greatest expense crushing the necks of Americans is the monstrously bloated and all-consuming government that too many stupid Americans are vociferously screaming for.
inflation may be slowing down, but we’re not in a deflationary period yet. so my gallon of milk is no longer increasing every other week but it’s still $2.37 higher than it was two years ago. And that’s the same for about everything that I buy which lot of things are now coming in smaller quantities. That pound of coffee that I buy is now 12 ounces and it’s more expensive than what a pound was two years ago.
I think the everyday prices for things are just at a point where most people are really struggling
The govt will never allow true deflation, this is the new "normal"
@@Corn_Pops_Rusty_Razor I believe you’re correct. I’m also unsure what sort of issues a deflationary would have, but it would probably have some unpleasantness.
There’s new normal really stinks.
You are not wrong but as consumers “we” have to figure out new ways to make our finances work. Whether it’s doing without things we don’t really need, staying at home more often, etc. it’s “our” job to figure it out. It’s heartbreaking to see people say they are struggling but don’t make any effort to improve things. OK I’m done 😊
The fed has said clearly their goal is not to bring prices back to where they were previously but instead slow the rate of increase. This should be no surprise.
Ĺ🎉🎉❤
We are net worth / baby step millionaires with 75% equity in our home. We had to pause our contributions after a job loss. 6 months of not contributing has been discouraging, but we will get back to it and make up for lost time when we get back to full employment.
Ken is astute. The immigrant family comes with little, works really hard and avoids debt at all costs.
Every immigrant I knew also lived with others and split major bills like housing..... Just saving on the big things first makes a huge difference in doing ok...
Live on $900 less... That means I'm living on about $500 a month... I don't think that's going to work.
If your monthly income is only $1400 you need to work on increasing it by changing jobs, retraining or taking on a side hustle.
@@denisesantana355Most Americans aren’t smart enough for that
@@denisesantana355 Maybe they can't work more for reasons......
I already knew what they'd say. Things actually aren't unaffordable, everyone at the same time is just choosing to flush their retirements in the toilet.
I am glad I started saving for retirement in my 20s. Between my 403b and Roth IRA, I have at least $100K saved for retirement at age 30.
Retired really early 6 years ago and when nosey people ask what do I do, my reply "whatever I want to" I travel the world whenever I feel like, my last trip was 5 weeks. Japan 🇯🇵, Hong Kong China 🇨🇳, Seoul South Korea 🇰🇷, Bangkok & Pattaya Thailand 🇹🇭, and Dubai UAE 🇦🇪 then back home. I figured out a long time ago that my money is a better employee than I ever was or could be so I let my money work for me and not me working for money. 🤗🤗
Love this 😂
These guys are unbearable to listen to. They say to be independent, then retire, and then say retirement isn't everything its cracked up to be. I'm going to do what I want now with my life. Screw these guys. I'm here to make an f ton of money spend it before I kick the bucket and do things I enjoy.
I'm single. Other than a $170/month car payment that ends in 12 months I'm 100% debt free. Make between 70-80k a year in Miami. Own my small crappy house outright (needs a new kitchen as drawers and cabinets are literally falling apart. 401k is less than 100K and I've already told myself I'll never be able to retire.
How old are you? If young enough, you should be able to retire someday. Don't give up.
You’re a prime candidate for retirement!
It's personal decisions people make on finances throughtout the years, not last 10 years, but need to start by your 30's!
I would NEVER pause, especially if you have a large debt. You can never ever make up that *time* (for compounding) again.
Especially in Roths. You'll never get the opportunity to contribute into that Roth that year ever again.
Compounding doesn’t work in the failing stock market.
@recabitejehonadab2654 Markets always "fall" and rise...ebb and flow.....wax and wane. Also, companies STILL pay out a dividend even during down markets. You are incorrect.
@@angieharris8015 companies with well covered dividends and good net income margins, that still pay out dividends during down markets? That’s what it’s all about right there!
@@angieharris8015He’s talking about a “failing” stock market, not a falling stock market. Eventually things could fail and never recover their purchasing power which is why it’s important to diversify into assets outside the system. It’s impossible to tell if that will happen in 5 or 50 years though.
Despite me losing a side gig job that was giving me nice $ with the work I put in, I am not slowing down retirement contributions from my main job. When you have a plan, stick to it to get the goals you want. The market today is looking bad but it will bounce back in time.
Make the moves today to thank your future self.
Agreed.
0:44 Inflation might have cooled but the prices did NOT go back down!! In fact it is still going up, just a lot slower, while salaries remain stagnant!
The fed has stated many times their goal is NOT to have prices decline but slow their rate of increase.
Let's just blame everyone but ourselves for our inadequacies and see how far that gets you.
the problem is that most don't have the knowledge needed to succeed in a challenging economy. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to save or earn a high in these challenging conditions.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
Tax planning is crucial for optimizing investment returns. If not planned well, taxes can eat into your gains and significantly affect your portfolio growth.
Poor tax planning can definitely affect retirement savings and investment
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skills and knowledge
You need a financial planner, Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
I've been making a monthly contribution to an IRA for close to 20 years. Im 45 and was hoping to bump up the monthly amount by this point, but that has proved challenging. Once the family car is paid off rather than trading it in for something newer I think I'll allocate some of what our monthly payments are and up the monthly IRA contribution. I should have a lot more in the IRA, but at least I have a chunk. My house will be paid off in 10 years and my wife and I balance the C.C.'s every month. Having enough when I'm 65 seems daunting though.
Excellent decision to keep your current vehicle and allocate that money to savings. Number one savings killer is never ending car payments.
Let's not also forget the crazy price of anything medical. If you have ever had a large bill because of deductible it is hard to dig out of more debt. Let alone how much comes out of your paycheck. Yes inflation has happened and prices are high and did not come down. So you can live below means but there are other factors that hinders some of us getting there in a shorter timeframe. You did mention taking care of older parents as well. I am in that boat too. How can I go get a part-time along with full time one taking care of parents, let alone the paying for stuff for them. Just saying. Other than that I agree with all they are saying. My mother was an immigrant and did well with hard work.
Discipline its not what you make its what you keep
The problem is price gouging! Esp by Insurance companies. I’ve lived in the same house for 16 years but it costs more today to live it in bc of insurance, utilities, taxes, and maintenance. You guys are talking crazy! You’re ignoring the pressing issues we are dealing with. My kids go to public school and it’s expensive. Their senior year cost of graduation is awful. Just to participate in the they have to rent the cap and gown $125.00. School lunch went up and it is NOT cheaper to make at home! For you all not to acknowledge the current crush of expenses is just sad.
Most of it appears that way because the currency their prices are denominated in a currency that has lost 50% of its value over a short period of time.
Greedy stock market. They took all the money. Government is just pathetic. Joe Biden cut all small and medium size cars because they do not make them any more. What choices do you have? Do not watch TV anymore and do your own math.
Exactly right on this video! People can make the changes but they many times will not do so. Cutting expenses is easier than increasing income in my opinion. Here are three fast examples. 1. Food. Chicken goes on sale for a buck many times, buy and freeze. Pork is $4. Beef $8. These are just protein and fat. So just eat chicken! Cabbage is cheaper too than many other veggies. 2. Stop eating out period. Yes, hard to do that. I spent $30 plus on eggs and sausage yesterday eating in a cafeteria. Eggs at most groceries cost maybe 15 cents each on sale. Today, Safeway has a dozen for 1.79. Do the math! 3. Many people are shopping for school supplies and clothes for their kids. I suggest shopping for them on Amazon or the local Goodwill. Once these clothes get washed and dried, there is zero difference than buying at some local store. Most of my clothers are over 5 years old, and get washed weekly. They look great!
Maybe the best post ever! 🙌
Cutting expenses will only get you so far, it’s not a good long term strategy unless you’re already spending an absurd amount. You’re better off switching from a job that pays $150k instead of $50k.
$900/month doesn’t work with IRS restrictions. Correct me if I’m wrong but I thought max contribution allowed was about $7000 for people under 50? I’m only stating this cause I am 45 and I’m not so sure I can get to this goal. Maybe close but not over 1mil.
About $7000 is the max for an IRA but for a 401K, the max is $23000 for 2024. For people older than 50, they can make a catch up contribution of $7500 which totals $30,500. This is all without including the employer match
It’s called discipline over time. Too many people trying to start in their 50’s…
I agree with the American dream being too accessible.... Especially around student loans.
My Grandmother worked at first A&P in Harrisburg,Pa. 1918. I asked her once why she didn't save more money? She said I was raising your father.
Right out the gate yall just immediately dismiss inflation and rising cost of living and blame it on cars. What to continue the trend of being detached from reality and out of touch.
You are right on the mark with "This may not be an income problem." I agree with that, because people today do not understand the difference between "Wants" and "Needs". When it gets to the point where you need that new phone every 2 years and new car every 3, along with cable packages plus streaming services, there is a disconnect there.
Amen !! Credit has gotten out of control because it is way to accessible. Couple that with something social media and everyone things they “deserve” it or are “entitled” to it.
Pay yourself first, hold yourself accountable, and invest in a S/P 500 index fund
I am a 46 installer technician. 900 is half my paycheck. People's wages are not keeping up relative to the inflationary environment.
I'm moving away from Ramsey stuff. This is like two trainers "helping" obese people lose weight by ripping on them in the gym when they're not there while they nod their heads at one another and make sad eyes about the condition of the world today. Guys, for the normal person, it's really getting hard out there.
I agree with you I was all aboard the Ramsey train I budget make good money have low bills but it's still hard to stay a float but here at Ramsey we are still the problem bec we can't get ahead of it all. Even following the steps
Even if you get away from their social media, stick with their baby steps plan and you will be good. If you walk away and don’t work the plan (give up) you will regret it
We thought our situation was hopeless. Then we started following the Baby Steps and after 5 years of misery, we paid off all of our debt and mortgage. We kept the frugal mindset and have continued saving and investing the money we were previously using to pay off debt. We are less than 2 years from becoming BS Millionaires. Our friends and neighbors think we are broke. We are also putting off retirement to increase our SS benefit. I want to retire just as much as the next guy, but the next guy is not responsible for my retirement upkeep.
Im 50. $900 a month. Are you kidding me. I make 50k as a single person. I have no debt. The price of everything has gone up so much I'm struggling. I'm not a huge spender, only necessities. My electric bill went up, my water bill went up, my gas bill went up, etc. If I had a mortgage or rent I would be screwed and saving for my retirement would be nill. These guys are out of touch.
Or look at it like this, what can you do right now as a single person to make an additional $900 a month?
Why not get a roommate? Understand that single people have the hardest time getting financially ahead in life. There is no real benefit in living alone unless you can afford it.
They sure are. The whole Ramsey system revolves around the false idea that everyone is lazy and undisciplined. That is just not always the case and don’t let them convince you it’s true.
You can do it.
Just Beans & Rice, Rice & Beans for the next 30-40 years.
@earthring but why is there a neccesessity for someone to somehow find another 900 $ when 4 years ago we didn't have to have a 2nd job out of necessity or survival
People need to get their priorities straight. Need to be smart with money. Need to be OK with the idea of working your way up the ladder. I see a lot of new grads coming out of school in the last five years or so and they want the big house, the fancy car, two or three kids, vacations, etc. And they wanted all right now. They’re not willing to live in a small house and drive an old car and stay home. So they’re in debt up to their eyeballs and then they say how life is so tough. I know another person that graduated college, started working immediately in his field. Lived in an apartment above someone’s garage and was very frugal. His goal was to pay off his student loans ASAP. He didn’t eat out. He brought his lunch from home, didn’t blow money on Starbucks, etc. But he was able to pay off his student loans. And now he’s saving for a down payment on a house.
I was shocked that our HR have to roll out mandatory contribution for retirement account with company match because only 49% of employees were contributing it voluntary. That’s shocking that someone willingly let go of 5% income (our company match the contribution 1-1 up to 5% of income).
I mean I doubt half the middle class is buying 60k cars. Problem is simple, it’s not just inflation right!!! But it’s also the income is shit. No one is getting paid to keep up with inflation.
Do these guys understand that inflation is compounded too? Yes, the rate of inflation is down, but prices are still going up and are way up compared to 4 years ago. It's probably not a bad thing if people are pulling back on savings in order to avoid debt and/or make ends meet. If it's ok to pause to get out of debt it must be good to pause to avoid debt.
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Amber Michelle Smith” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.
Regardless of lifestyle choices, its just harder to afford the same amount of what people are used to. Its hard to predict the future and most of the middle class didn't know inflation was going to be this tight this year.
When I finished FPU I experienced lifestyle creep. However, the creep was funding the 401k, funding the IRA, funding the 529, saving for another paid for in cash car, stashing money to pay off the house early. My expenses are much higher now than they used to be partially because of inflation but also because of the massive amount of saving every month.
It's hard to invest when you need to put food on the table for your children and your rent is 50% of your monthly income. The system is broken, and something needs to change. If you bought a house back in 2010, good for you! Alot of us dont have the blessings of a low monthly payment to have a roof over our heads. I still somehow invest 10% of my income into my 401k and I work hard every day. I'm done blaming myself for this messed up world.
Bitcoin is an alternative to the broken system
8-11% is a pretty generous and not as common return. I will say though, in finding these financial guides, my wife and I have been able to live comfortably, all while generating returns and making additional payments on things. An emergency fund just made it so we paid for roof repairs cash. It is possible, the mindset is everything though
Problem is most people's dont have an extra $1000 per month to put into stock market 😢
My dad was an immigrant (due to the Vietnam war) who ended up doing finance. When i was a kid growing up through the early 2000's, he would tell me stories about guys/peers who ended up jumping from buildings because they had made big bets and "lived it up". When the house of cards came crashing down because of Y2K, it was a stark reminder that if you live beyond your means and not prepare for the rainy day, you might end up like one of those guys.
One of the better discussions. Thank you.
Im 27 single make 160k (salary+rent) and live with my parents, rent out my house, and put 5k away into retirement each month. Ramsey would tell me i need to move out, get my own place and increase all my expenses. Why the hell would I listen to that? That's why I take everything these guys say with a grain of salt
A grown man acting like a baby sponging off mommy and daddy...😂
@@neolithic3 Yea I didn't ditch my elderly parents so I can take care of them. Glad I wasn't raised with your values. Lucky me I get to spend time with my parents and I get to retire a multimillionaire with multiple properties 🤣 enjoy paying 2.5k a month for a studio
There is nothing wrong with living with family and saving money. It's actually pretty smart.
@20f124 I'm just hoping you are paying a substantial amount of your parents bills so they don't have to. For you to live rent free, pay no utilities, etc while your parents use their money & savings just so you can invest for retirement is just absurd
Inflation has a compounding effect in itself so yes that could definitely be playing a major role
Those who cast off restraint will perish. Self discipline, self control, and long term thinking are at an all time low so it's no wonder retirement saving is at a low, marriages are at a low, divorce rates are at a high, and moral clarity is at a low.
I love your advices short and sweet you making it easy to understand ❤ By the way this team is fire 🔥
I never did understand when somebody says do you rent or do you own a house and the person that’s asked this question says oh I own my house when in reality they make payments to the bank they really don’t own your house it should be asked do you rent, do you make a mortgage payment or do you own your house outright free and clear? Seldom do I ever hear that question asked in that way.
I think it's about your upbringing and yes I agree culture is a good term for that. Not dependent on your race at all. Just dependent on your parents' attitudes and how they raised you. The attitude "I deserve" is a wealth killer. People who end up with money have the attitude "I will do what it takes". That includes living in poor conditions, driving old cars, no vacations, etc. Whatever you need to do to make ends meet.
You are 100% spot on!
I say it has a lot to do with wages not going up. Inflation has gone down to normal levels but that doesn't mean deflation is happening. With everything going up, there is only so much that can be cut out or reduced.
Thank you for giving a reality example of someone starting at 45 with nothing
You guys sound out of touch with reality. The middle class is getting squeezed.
We have 987 programs to help low income people and children. Lower cost housing, free food, free college.
The rich have historically low tax rates.
The middle class gets squeezed. They pay full cost for exponentially increasing housing costs, they pay for all of their food, they need to bleed to support their kids going to college or their kids go into debt.
Their pay increases also didn’t keep up with inflation
I'm 35 this year, and barely make $50k a year. My rent, for a 1 br, 1 bath apartment is $975/month, and my car payment is $270.
Yet somehow, I still feel like I will Never get there, to being 45 years old with a salary of 6 figures. They make it sound like $900 a month is easy. It's Not, when people don't make that 6 figures a year!
I’ve been hearing for a few years that I and those younger than me will work until we die, so people are wondering why save for a future that will never come. Still contribute the max, you can always cash it out and pocket the employer deduction, even with an early withdrawal penalty you still get more than if you’d just saved that few percent on your own.
I'm half a million in debt living in a one bedroom apartment and driving a 20-year old Toyota. Im pretty sure I'm not surviving to retirement, but I certainly haven't saved for it. (45).
Best cost saving tip: get a vasectomy. That small co pay can save you hundreds of thousands in child care costs. It’s what I did at age 28. Today at 44, my wallet is full of disposable income and I still save for retirement. Win-win
Something got to give, if you aren’t making a higher wage and inflation is going up you have to make up the difference. So cuts to your lifestyle or your future.
It’s called the national obsession with Credit and the ability to delay gratification