73% Of People Say Finance Is Their #1 Stressor
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- Опубликовано: 19 июн 2024
- 00:00 Intro
02:16 Paycheck-to-Paycheck
03:57 Emergency Fund
06:31 Strategy
08:55 Manage Debt
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Thanks for watching, I appreciate you!
You are definitely winning the wrinkle war Erin! You don’t look a day over 25!!
I started to feel confident in my finances, the next morning my ex wife left 😎
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It took me 10 ten years to build up enough wealth building assets to put into a Will. Nothing happens overnight, you have to play the long game to get anywhere. Just my experience here.
I've never had much more than a mortgage (student loans during my 20's too), and I can attest to the fact that being totally debt free now and with a well stocked emergency fund pays incredible dividends every waking moment in terms of mental well being...far more so than any "thing" one might want to buy. Nice vid Erin!
I have no financial stress due to significant savings/investments for my age, but that doesn't stop me from still being frugal.
What a great topic! I have two WONDERFUL daughters, who couldn't be more different, but what you said about confidence or knowledge so true. My daughters are both on their own, and doing well. My oldest daughter probably makes 60% more than my youngest, yet my baby stresses far less about money. My youngest has a degree in marketing, and so she took business and finance classes. She understands investing, and has had a budget, and tracks her expenses regularly. My older daughter does not have that knowledge. They both purchased new cars in the past six months. My youngest looked at rebates, financing, what down payments worked best, etc. My oldest just bought hers, and she was freaking out about everything, and worrying abut payments, etc. My younges sets goals for spending, savings, looks at what's best, traditional or roth! Needless to say, my younger is obviously worried about expenses, but is not as stressed about it. Fortunately, older sister sees what her sister is doing, and is following her.
Well I’m glad she’s got a sister she can turn to!! And it sounds like they are both very cognizant of financial matters!
I wish I could get my older sister on board, my dad just looks the other way... at least my other sister is starting to listen
Growing up, my parents always had financial stressors - and it carried over to when I was in college and in my 20s - though graduate school when I was in my early 30s. Hey - Franco American Spaghetti was $0.17 a can and a treat was their Macaroni at $0.25 a can. But once I started working a real full time job, there wasn't much stress because I continued to live as a near pauper for many years thereafter. It was even moreso with my wife than I. As we grew older, corporate gyrations caused my wife and I to reconsider our financial plans (in addition to our physical location)) and we found that increasing our emergency funds as we aged allowed us sleep better. But it wasn't until we paid off our mortgage that we felt completely confident with our finances could then look forward to a happy retirement. And I'll add that we have been very fortunate in many respects (health, job markets, family, etc.) and continue to be grateful for all of it. Great video!
Mortgage only and I hate it. Still a few years to go but at 2.5% interest it isn't worth selling anything to pay it off. Being debt free is a magical level of freedom that I am really looking forward to experiencing. Thanks for the video, Erin.
I get that!! Our mortgage is 3% - I feel the same
@@ErinTalksMoney Absolutely. Why pay it sooner? We're down to pretty much principle as it is.
This is wonderful. I would put all the money that you need to pay off the mortgage into a high-yield savings account (think of this as your mortgage emergency fund) and then pull from that account to make each payment. If you are unable to do this because you don't have enough saved, then I would save like crazy until you have all you need.
@@KayKay0314 Essentially it is all in simple liquid accounts. I agree. I want my money to work. I want it to work as hard as I worked for it in the first place. There is a serene calmness in knowing that I could pay it off right now if I wanted or needed to do it for some unforseen issue.
I wish I got in on the magical low interest rates of mortgage. I got a 6.75 percent rate and I'm doing my best to pay extra towards it when I can which is most months but that's also with student debt to pay off. My goal is debt freedom by July 2033
Again, another great video. Being debt free is the best. It really helps your peace of mind. I'm so glad I made that decision and worked to achieve that goal!
I would have never guessed that you were approaching 40. Based on your breadth of knowledge I guess it makes sense. Keep up the good work!
Gained much more confidence after finding the Ramsey plan and working to become debt free. Lessening that burden of debt made it easier to save and get on a path to growth.
Haha. finance is my most confident relaxer. For me it is something I have considerable control over. At my age I always know where the bathroom is 😁
Haha, yes, stuff happens. $25k for an engine replacement in my home last year, $2.5k for suspension work on the home this year, and finally $3.5k for a transmission replacement in my car a few weeks ago. But I had a $50k emergency fund for such things, so life and retirement is still good! Looking forward to a bunch of more cruises this fall!
Have fun cruising 🛥️ I bet you found some really great deals!!!
So great to see the channel growing so much, Erin...keep up the great work!👏 👏
Before I retired we started using YNAB to track our spending. One benefit of this, is giving every dollar a job and keeping track of every transaction. Inputting each transaction makes you think about whether that spending, even the small ones, are necessary. Soon those small decisions not to spend, add up. Five years out from retirement now and we live confidently and comfortably. I enjoy your videos. 🙂
I always enjoy your content and the time and effort that you put into each video.
I learned along time ago that I don’t have to keep up with the Jones’ and there is a big different between needs and wants. Personal finance was not taught in the 70s in my high school, and it took until I was 30 before I even started to look closely at money and learn what it does for and against you.
I made sure my son, and now my grandkids know what money can do for you early in life so you can enjoy the years later in life. Though I would guess most of your viewers and subscribers are not novices in money…what you do for us is invaluable. You show us different ways of looking at things and possibly advice we never thought of in the first place. As far as skin care and wrinkles? I had a child and the wrinkles came with his teen age years. Thanks again for the great work.
Huge difference between wants and needs!
I’ll keep that in mind about kids in teenage years and wrinkles 😂😂
All of these strategies helped me become more confident with money. Being debt free helps me feel a lot less stressed and gives me more freedom in my budget. Emergency fund also gives peace of mind.
Erin I don't think I have ever commented on your looks but DAMN !!! That blue color looks really good on you.
Another video idea ? What happens to 401k's and IRA's when you and your spouse die....kids getting the money ? They are being huge taxes on that money ?
In regard when I felt more comfortable with my financial situation. Right after I discovered it on RUclips.
Another good video
Thanks!
Thank you 🙏
One thing I wish was added is you should do all the things you mentioned BEFORE investing in the stock market/ whatever alternative asset class acclimator
One of my friends was sold a universal life insurance policy as an investment vehicle once. I got curious and actually approached the agent about IUL. I got all the fancy brochures but found the deal too good to be true. So, I asked for the detailed paperworks and started doing my own math. I found out about the frontend load, the restrictions on access to the cash value, etc. and concluded that it's only worth it if I exhausted all other retirement vehicles and still had money to invest for generational wealth, which was very not true and is still very unlikely today. Then, I heard almost the same info from the Money Guy Show. That's when I realized that I was at least on the right track to figure a lot of personal finance stuff out.
getting a good nights sleep works well with a few night caps before u sleep.. sleep heals ur cells that break down during the day…I sleep a solid 8 hours after a few… just saying…
Hi Erin, good video as always. Have you ever talked about the strange difference between traditional 401k contribution limit and tax deduction limit? Can you help me understand why there's a difference? Thanks!
I work in the national defense industry as a technology professional for many years… very proud to do that and love the things I work on to support the defense of the USA…. being in that industry for MANY years I’ve never had a finance stress as its a great indsustry to be in.. very stable and in demand… anyone listening going into that industry is very FULLFILLY :)
I don’t really stress over money nowadays. We don’t spend more than we make and that’s all that matters to us. I am a spreadsheet kind of person and I do make goals on what I want to save and spend in a year but I find it more comforting than anything. My kids call it my happy place. Lol
It is sad that I look around your background and see if you get new furniture or plants? haha. As always great content. I only wished they taught money management in in school.
Haha! Well my fiddle fig sprouted 2 new leaves this past week. Other than that, no new furniture plans
I have a feeling there were a few retakes with the tongue twisting confidence competence 😅😅
The nice thing about friends and relatives borrowing money is you then don't see them very often after that.
😂😂
depends on how quickly they burn through that money.
My ultimate number keeps changing. I have a custom spreadsheet that tracks my finances. I keep tweaking certain aspects of it such as: average investment gains each year, social security per year if I were to take it early, and the amount of money for expenses every year. I'm currently estimating that my gains are a pessimistic 5% per year on average, just to be safe. By the end of 2023, it looks like my net worth may finally be greater than the amount my spreadsheet says I will actually need. I'm not going to quit my job just yet. I believe we are about to go into a recession. I want to officially retire early when the worst of the recession is over.
Yes not sitting or laying in bed all day can be stressful 😂❤
hii erine I was working as a sales manager in top japanese firm in india but my confidence and my career got shattered becoz my mother and father diagnosed with cancer with no health insurance.Thankfully my mother survived but still i am struggling in job.But m trying to get financially stable.Hope i will achieve my financial goal with some sound planning and atleast some good luck now.
Grab that cash with both hands and make a stash 😂
Erin, I have been reading that the Marcus business of Goldman Sachs is going out of business. Do you know anything about that?
Is it still an emergency fund if my money is in a brokerage account and it's invested mostly in TLT, Treasury funds and a cash sweep account? Oh yeah and some money in I-Bonds too. If I had to guess, I think I could live on that money for the next 5 years. I'm trying to build up enough to bridge the gap between now and 59 1/2
no, it's not an EF. EF you want to preserve and have when and where you need it. Why would you own a bond fund ETF or treasury fund, when you get no benefit like no state and local income tax benefit like you would holding actual treasuries? cash sweep account is fine, because that is still liquid and essentially no risk. some in i-bonds if fine, too, since no risk, although access to i-bond makes it a negative for being an EF unless your one year hold period has passed or you have other EF funds to cover your EF timeline until i-bond holding period expires. an EF should be separate from your retirement gap bridge.
@@hanwagu9967 I bought TLT because when interest rates finally drop, the ETF will go up which could be quite significant. I have 400 shares so far. Once the interest rates are stable for about 9 months, then I'll likely switch to buying the SPY each month like I do with T-Bills. TLT also gives small monthly dividends too. I know it's not really an emergency fund, but I am also not concerned if I happen to lose my job once the recession hits.
The way I look at liquidity is how quickly would I need to get to it. There’s what you need immediately and then what you would need month 3-6. If you can’t get to it within those 3-6 months then it doesn’t count as EF. Obviously volatility is a factor, since you don’t want to lose value when you need to pull it out.
Do you have a clue?? I have been thru three relationships.....And it could be reason. If I could have got her head out of the sand, she finally admitted cash is tight after we split.
Hello Erin. I have been watching your videos for about a year. This one seems to have more editing FX than usual. Are you doing your own editing?
Still doing my own….but I get lots of emails from potential editors telling me that my editing needs work 😂
It's the content that counts. Put that editing money in Vanguard or in treats for Peanut.
@@ErinTalksMoney I watch videos all the time with great editing, but the content is terrible. As long as the content is good, editing is secondary!
Imagine how much better the videos would be if Peanut 🥜 was in every video!!!
Don’t listen to them Erin. Keep dressing beautifully
When I hear reports that people cannot cover a $400 emergency type expense without debt this topic is to be expected.
Yeah for real. Like people like the host work multiple job and or live in duel household or super cheap places compared to expenses. So with those advantages they can avoid some of the issues.... While many others are stuck in issues and will not have ways out because math and conditions matter..... WTF whey not just be honest about why so many have issues besides their behavioral problems.
I started feeling confident after butt-head knocked me off a 2 story house. Don’t worry I’m ok. The ground broke my fall or something
I’ve got a 2.125% mortgage with 9 years to go. I’m 52 y/o and my portfolio is $1.5 million. No reason to pay extra. I’m saving about 25% of my income. My concern will be spending it. I’m not a shopper. Seriously considering making a donation to my local YMCA in order to build a new pool. That would make me very happy ❤️
Animal shelter donation.
@@northeasterndirtandpropert7974 fantastic suggestion. Maybe donate 1/2 to them?
You look at decade younger Erin! I just turned 40 this year and always get compliments that I look young too! We don’t have kids and only a fur baby, I think that helps 😅
Haven't had money stress since age 24 and am 31 now. I have been able to make different decisions in my life over the last 7 years as a result.
You sure it was not your conditions? I only say that because I was able to live off $10 an hour while making $12 an hour. Well now the situation is $18 an hour and yet to have similar I will need to make at least $20 if lucky $22. WTF the basics seem similar to before so not sure decisions matter much if the underling reasons are al the same.....
Agree 100%. Finances are a huge stressor, because people do not have financial goals. When you are in debt, you focus on that debt. You get out of debt, by having finacial goals and plan for getting out of debt. I would also say people who aren't in debt, also have financial stressors because they worry they aren't saving enough or don't have enough saved or saved for retirement. Again, having financial goals and a plan for investing and saving helps alleviate that stress. People need to be active in their personal finances, most are passive. That's why all this passive income nonsense is ridiculous, it gives the impression that you can get rich doing nothing. The fact is, nearly everyone needs to be active in their personal finances.
What they have different problems all together. Many just don't make multiple times what they spend over time so they will end up broke.