She talked about getting married. To me, that's where her house could be a reality. Instead of a $400,000 house she can't afford in a $580,000 market, on two incomes now an actual $580,000 house is in reach. The trick is to put practicality over what you want. Don't get a house you shouldn't, and don't get married just because you want a house.
Great video, I’m 50, retired a while at 45. I have 35% of my capital investments in an IRA. 25% in index funds, and the balance spread across other investments acts. In cumulative of over $5m. I receive income from my rental properties too. Zero debt and all is going accordingly.
Indeed, most people downplay the roles of financial advisors until they are burnt by their mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I’ve been able to navigate the volatilities and scaled up 80k to 20k with an advisor
JOSEPH NICK CAHILL… He is very well known in the financial sector. He not only understands the intricacies of the stock market, retirement and real estate but also has insights into navigating the financial sector for potential gains.
I appreciate this. After searching his name online and reviewing his credentials, I'm quite impressed. I've contacted him as I could use all the help I can get. A call has been scheduled.
I LOVE this format, and agree with comments requesting a line item on CSP for pre-tax retirement situation (just because context would be so helpful in understanding the full picture).
I’ve never found other financial influencers helpful, I mean they were, but I knew in my gut that their tips weren’t their best. Yours are actively engaging and realistic. And doable without real practicality for a diverse range of average ppl. Thank you.
This was brilliant. I'm in the UK and sometimes the figures being discussed are wildly unachievable in my context. But these were all realistic and I took something from each of them.
Hey Ramit -- Why don't you add a question for them to provide their pre-tax retirement contribution amount per month? I bet it would make the assumptions and advice so much more solid. (This is coming from one of those binge-watching money nerds/fans!)
Love this video, Ramit! Huge public school fan here as well. Don't have to send my child to a public school but I choose to! Not into Silicon Valley private school culture down here in Los Gatos, just personally. Stay at home mom here about your age... a tad older. Worked in the corporate world for a long time but now get to devote a ton of my time to volunteer work in our local public elementary school and I am LOVING it. Thanks for the props for public schools here in your video :)
Junk drawer is universal. I feel a little better knowing that on an income of 22k gross annually i have similar figures to somebody older who is on 70k.
6:36 I never thought about it like that. I am low income due to disability and the vulnerability of a lower # in emergency savings makes lots of sense even though percentage-wise it seems like it’s enough but it actually isn’t. Thanks for this insight.
I'm in a similar situation to you - income extremely low due to disability. I hadn't thought about what Ramit said in those specific words, but something I've noticed is how incredibly anxious I always feel about money even though I have a good emergency fund. I've figured out that the feeling is due to housing insecurity - if my landlord ever evicts me I don't have a high enough income to get another rental due to the housing crisis in my country blasting rental prices into the stratosphere (even in tiny rural villages), and my emergency fund is not enough money to purchase a house/unit/apartment/whatever, so I will be homeless. It's very upsetting that despite being in the best financial position that I have ever been in, I'm still one arbitrary decision by my landlord away from complete destitution.
i love this channel. Its really a cool insight to see how others are doing and sort of contrast with how my own family is doing. It seems so taboo to talk about money and finances with friends and family.
@@ElisaAvigayil Caleb is a screamer but that's where the similarities end. Dave is very condescending in his own right. "Withdraw 8%" is totally a shot at Ramsey. He said you can safely withdraw that per year in retirement, and Caleb and anyone else with a brain have strongly pushed back on that. Most reliable sources recommend a 3-4% per year withdrawal rate in retirement. "12% mutual funds" is also totally a shot at Ramsey, who claims its easy to find mutual funds which outperform the total stock market yet. He states he is invested in these products yet never revels what they are, probably because they don't exist. A litany of research suggests its very hard to beat the returns of the total stock market in the long run.
Great to see a single person review. I'm not sure that assuming she would buy the median home as her first home is a good assumption. First homes are usually smaller and more affordable to build up equity. I agree that maybe a house isn't the best idea for her
Love this, being realistic and running some basic numbers that get you 80% of the way to accurate could be life changing. Questioning whether you realisticaly want to sacrifice almost everything just to own a small, single house in a single location which is barely an investment is SO important in my opinion. Even worse here in New Zealand, people seem to trip and fall into a house purchase and will basically bid whatever their bank told them they could maximally borrow.
For #1, the only problem with getting a higher paying job is that you'll need to work all 12 months of the year and maybe get 2 weeks for vacation. Doesn't leave much time for traveling.
It's Temporary. You Will Either Earn A Better Position That Will Give You More Vacation Time OR You Will Save And Invest Your Money Probably Which Will Allow You To Retire Early OR Switch To Working Part-Time And Be Semi-Retired , Which Will Allow You To Have More Vacation.
At @30:39 @Ramit did the math wrong. He is only adding the after tax money ($410) but I’m pretty sure this couple is maxing out 401k pre tax plus a match that is likely around an additional $2.5k a month. So they will have $3.3M in 25 years and can withdraw >$120k a year.
yep, i did some math myself and they're investing over $30K in retirement each year. They *could* reduce pre-tax investments by $1K / mo and still be well on track to withdraw more than their current salary ($108K) in retirement. That $1K should go towards building up their EF massively before being applied to travel, though, and in the future all of their salary increases should go towards maxing out their retirement again.
I think you're right. how do you even account for pre-tax investing on the CSP? do you just subtract from the Gross income? and then Roth IRA which is not deffered would go in "investments"? Very convoluted to see the total monthly investments.
This is what I struggle with on the CSP too! Like okay yes it looks like I'm only contributing a tiny percent to my Roth IRA. But it doesn't factor in the 10% that's coming out already and getting 50% matched in 401k before it ever hits my bank account
@@camille744investments is for both pre and post tax. You know how much your company takes out of your paycheque to put in your 401k, so just add that
I’m surprised that a single mother with debt and a child would think she could afford to travel. We cut all vacations and eating out while we had consumer debt.
The single mom actually sounds like a divorced mom. It's very different raising a child with no support from the father vs being divorced and getting child support and equal custody. Its no wonder she can travel when there is a whole other parents involved.
Solo parenting vs Single Parenting. I get what you’re saying. Likely her food and other items are so low because she splits them with the child’s father or doesn’t include child support in her household money (she’s only counting her food and personal items etc). If she shares custody she has minimal childcare costs when she travels.
I’m 18 years old, studying to become a CPA and EA. I’m a junior in college at SFASU and I’m enjoying your content (as well as the format of this video). 😊
I like this a lot, in addition to that if you want to simplify your financial life keep debt to a minimum. Cut expenses. Develop healthy habits like consistently saving money at regular intervals for investments to help you build wealth. If you work on this, your financial potential will grow exponentially. There are numerous opportunities to make money on the financial market. With the assistance of my financial advisor Abigail Ann Ryan , I was able to earn my first million dollars through passive investment in a variety of assets and right now my friend is on his way to a million too with her help. Goodluck!
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
Love these videos, I've learned a lot from them, even seeing people with quite higher income than mine, being rich is definitely not about numbers but a mindset!
Single woman in the first one. I get her ambition for travel and wanting a place to call home. But she doesnt make enough to afford both on her single income. She either sticks to the travel life while renting, or gives up the travel life to focus on being a homeowner. The only way she can do both would be if her income doubled from what it is now.
At 5:03 that's actually an increase of one percentage POINT not an increase of one percent. When I first heard the suggestion in another video, I wasn't sure whether you were talking about the amount or the percentage point. Even though the term used in the video is incorrect, the visual graph makes it obvious for the viewer what is actually meant.
He did it twice. In retirement your total income can come down by 30% cuz you no longer have to save for retirement. Going from 108k down to $75,000 is perfectly fine
To get a wider stance maybe Casey the single mother could rethink and save her $6k monthly income amount instead of just her $2.3k monthly expenses? If I was her I’d focus on working to get rid of those debts ASAP.
It depends on how and where you travel. I often spend much less when traveling. If I began renting out my home while traveling I would break even or make money. I have never regretted any of my travels. I don’t do debt except for mortgage.
For me the obsession of travel is there because it’s nice to see the world but also it’s actually achievable to go on a trip rather than buying a house. Plus a vacation is not a monthly expense where as housing is
Something I'd add to the Denver teacher is that there are likely downpayment assistance programs she'd qualify for at the city or state level to help, so while she def needs to save for a house, she could consider programs like those.
I was a teacher for 10 years.. took a calculated risk to get a masters degree for 25k and was able to pivot to a new career that doubled my salary. (Teachers with 10 years of experience in my area in Florida are making 47k)
My opinion: No, to the house for now, especially since there is no down payment saved. She needs to save enough in case her landlord sells the house though. Pay off student loan and raise the emergency fund to 1 year of expenses.
13:30 Yes, let's make a society where teachers aren't payed enough to have a good life, what could go wrong... I'm shure the best of the best will want to dedicate their lifes to the craft...
Yeah.... the drawer problem... I believe it's the world's plague. I have one myself (mid-east Europe), I've seen one at my sister's house in England and even my auntie in Rome, Italy. Thank you for all the clues you give to people - it is always good to listen to you 😎
Love these episodes, but I think there was one pretty large oversight. The investment calculation for CSP #2 is completely wrong because it's not taking into consideration the large amount they appear to be investing pre-tax. The current $190k amount already suggests that they're aggressively investing, and you even commented on it when you saw the Gross vs Net income, which indicates aggressive pre-tax investing. But when you ran the investment calculation, you only put in $410 as their contribution amount. They are very clearly investing much more than $410 per month. This is actually something I adjusted on my CSP; I adjusted and calculated the numbers so that the sheet actually shows and accounts for my pre-tax contributions. I'm glad Emily and Steve caught that, but it might be something worth baking into the CSP.
Ramit, why did you completely ignore that the second couple is likely maxing out their 401k when you projected their retirement savings? I am confused why cutting that pre-tax savings rate was not considered. Assume your team missed this. Avid watcher, excellent content overall. Thank you
We had 3 junk drawers. I emptied and cleaned out 1 so for the last several months we’ve had 2 junk drawers and 1 empty drawer 😂. I don’t know what to do with the drawer space now! It’s been junk for 4 years! This is an analogy for my CSP. I need to send it in…
I’m 26, I have no debt, putting $1,200 in retirement a month, make $130k a year, but no house yet. I still feel guilty buying things I want. What is wrong with me? Feel like I’m doing everything right though.
This is just my 2 cents, but do you know exactly what you want to do with your money? If you make short term (yearly), long-term (5-10 years), and lifetime (retirement era) goals you can figure out what you need to get there- money-wise, mental health wise, relationships to establish, etc. Knowing this and having a plan with the right people in your circle to help you grow will probably make you feel more stable.
My guess? You might come from a family of extremely frugal people, probably you observed some financial strain on the family as a kid, and internalized the tension that came along with "unecessary" or unexpected expenses. It's hard to shed, but it really helped me to reflect on my long term goals, then set monthly targets for investing and saving- transfers executed the day I'm paid- and any excess is mine to spend as I want. It's harder to feel guilty when you're working toward a goal and you know you're doing a good job with money management. Basically, following Ramit's advice is very helpful lol
What if you were to have a separate checking account you transfer x amount into each month, after your retirement, short term savings, bills, etc, then using that account ONLY for fun money? It separates it out from the rest, is a set amount you earmarked for living a life you love, and you can spend it without consideration for anything else. Make a list of things you think would make you very happy... then go down the list. If there's a chunk left at the end of the month, consider a donation to a cause you care about. Life changes. You might be living high today, but true security is an illusion. Something could happen down the road and you're struggling. Live your life, don't wait.
Hi Ramit, I love your content BUT I am based in Ireland where investing is really hard to do and is subject to gigantic tax of 41%, so really I would have to go very high risk to see results like this. Would you have any recommendations on how to grow your wealth in this situation?
I appreciate Ramit's content, but I have a couple of questions. First, when reviewing investments, I’ve noticed Social Security income isn’t included, even though it can replace up to 64% of earnings. Is he assuming Social Security won’t be available in the future? Second, when assessing home affordability, why does he use the median home price instead of considering a person's current income? There’s often a lot of inventory available below the median price.
CSP3: high yield investments are really a way you can go, but: 1) There might be more risk involved then you realise 2) They're probably not going to grow as fast, making Ramit's general 7%/year growth calculation unfeasible.
nice to not see certain dark colored token being advertised or an elderly couple who happens to be in every finance video comments who are VERY worried about the price of gas in the future
Loving this format as well as the couples too, already on waitlist for the new book, and waiting to see you live hopefully in Miami. Question: how to calculate how much you will have by retirement. Would love to play around with my own numbers . THANKS ❤
You can search for a compound interest calculator, enter how much you have invested now as the starting point, how much you plan to invest per month (pre-tax and post-tax accounts), enter the average annual return (Ramit recommends 7%), and how many years until you plan to retire (Ramit usually uses age 65). Once you get the ending number, multiply it by 4% (per Ramit's guidelines) to see how much money you can withdraw from your investments as income per year (before taxes).
For the spending plan #2, it’s interesting that you didn’t mention there’s $0 for debt, but they’re in $35,000 of debt. Did you miss that or was it intentional to not hit on it?
Love the video! I just have a few questions related to investing that I would love to get your opinion on. Do you have any suggestions regarding dealing with 401ks? Do you suggest combining different 401ks from previous jobs into one account, or transferring into Roth or Roth IRA? Would you have or would you make a video about best ways to invest in regular brokerage account? For example, i personally dealt with cancer and I’m only in my 20s, and it’s likely that I will experience this issue continuously and won’t be able to treat it. Opening a retirement account and constantly only investing into it wouldn’t make sense for me because I’d have to take money out early regardless before I turn 50 even, so I’m just faced with penalties. But when it comes to investing in general everyone just seems to be talking about retirement accounts and nothing else..Thank you!
I have a question when you talk about investments what do you mean by that and why kind of investments we can do. As I leave in Pakistan making good amout of money but cannot manage my finances and no saving, no investments. That's rising my blood pressure every day. Thanks
Absolutely! Drives me crazy and makes his “are you on track for retirement” completely worthless. He also needs to have a note for categorizing the debt and assets!
I love Ramit’s videos, as a UK resident I can see a lot of advice that is transferable across the pond, are there any examples of International csp’s as US wages seem really high for fairly average jobs! The one thing that irks me slightly is that mortgage costs are treated the same as rent in the fixed costs section, this is made up of interest and repayment, which is reducing the debt over time and giving the participant’s greater net worth (similarly with debt / loan payments) and making them richer over time. Would love to hear if you have any thoughts on this.
With the way some finances are throwing some shade to other channels, id love to see an AI version of Caleb, Dave Ramsey, Suze Orman wrestling. Caleb high pitch screaming at Dave and Dave using his mechanical shotgun firing stupid shells
@15:15 Moving money from the kids college fund to personnel investments did not increase money by "170 thousand from making a flip of a switch". All you did was move money from the kid bucket to the personal bucket. If her rich life is making sure her kid has funds when she is 65 or her kid is older, there is nothing wrong with that. Math is math, but there was no increase in money, just a change in its bucket.
I mean she is switching the money from someone else to her. My kid's money isn't mine. I've invested it for them. So to me that would be a switch. It's also riskier to invest in a college fund because the drawdown for an education fund is a short 4 year period whereas as a regular investment it can be invested for 30-80 years (or more if the kid inherits it)
Technically with compound interest it is more. The $100/month would compound with the money already in her investments and her current/future contributions.
@@sarahb8073 you can roll the 529 into a ira for the beneficiary, send it to another person like a grandchild. You can even pull it out for non education expenses and pay a penalty. I just think my point is that he made a REALLY big deal about 170 thousands being created when it really isn't. My main point though.. if someone wants to save for a house, save for a boat, for 1st class tickets, or wtvr.. thats their rich life. And if someone wants to do that for giving money to their family, thats a GREAT rich life. For some.
There is no guarantee that paying her kids college will ensure that the kid is doing good when Mom is 65. The kid can still fuck it all up and be jobless and have to rely on mom for support
haha i like the portion where ramit said he loves public education when he went through the numbers for the middle school teacher and he mentioned he went to public school all the way up to high school. but not college! cuz he went to stanford growing up in the bay area instead of cal :p lol just giving you a hard time; it'd be hard for anyone to turn down the opportunity to go to stanford
In some state if you contribute to a 529 college fund you get a break on your state taxes. So you should take that into consideration before saying don’t put money into a college savings plan.
The couple doesnt want to buy into the stock market at the wrong time ...So they are considering buying into one of the most inflated housing markets in history
Hi, can you talk about investing 10-16 percent in your 20s and 30s then dialing it back later on in life but the compound will be there. Sorry for the stupid question but invest it in what exactly? I’m about to start a new career and I want to do this as I am in the position to do so. Thank you so much.
I’m assuming she’s not including child support or her child’s items if there’s shared custody. Even if her child is only with her 50% of the time they still need personal items and food for more than $400 a month.
I think the fixed costs on the second review are inaccurate because they used the wrong net. If the net was only net after taxes and they included the pretax 401k in the investments section then the fixed costs would be a lower % and the investments would be higher %.
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Ramit, this is your best format of content. Amazing.
It’s my favorite
I agree with this, easily the most informative and interesting
Less ranting 😂
I agree 100%
1000%
Yay, finally evaluated a single person
She talked about getting married. To me, that's where her house could be a reality. Instead of a $400,000 house she can't afford in a $580,000 market, on two incomes now an actual $580,000 house is in reach. The trick is to put practicality over what you want. Don't get a house you shouldn't, and don't get married just because you want a house.
I like that his channel is geared toward couples, but certainly don’t mind the occasional single audit
He's done a single person in another of the Thursday videos. Also if you subscribe to his newsletter you will see more single people.
More single evaluations please!!
@TonyCox1351 I agree but I wish there was more average incomes and not the "American average"
Even though you say basically the same thing every video, I love watching every single one of them
i cannot tell you how much i look forward to these videos
I’m just
Great video, I’m 50, retired a while at 45. I have 35% of my capital investments in an IRA. 25% in index funds, and the balance spread across other investments acts. In cumulative of over $5m. I receive income from my rental properties too. Zero debt and all is going accordingly.
Indeed, most people downplay the roles of financial advisors until they are burnt by their mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I’ve been able to navigate the volatilities and scaled up 80k to 20k with an advisor
How can I get someone like that?… I’ve been looking to hire someone like this for a while now
You can search on google them, an example is *JOSEPH NICK CAHILL*
JOSEPH NICK CAHILL… He is very well known in the financial sector. He not only understands the intricacies of the stock market, retirement and real estate but also has insights into navigating the financial sector for potential gains.
I appreciate this. After searching his name online and reviewing his credentials, I'm quite impressed. I've contacted him as I could use all the help I can get. A call has been scheduled.
Man… that single mom. I appreciate and respect her having goals. But the realistic expectations and execution?? Good lord.
Yeah that's what I was thinking. Overall she is doing well but those goals are going to be very very hard unfortunately
I LOVE this format, and agree with comments requesting a line item on CSP for pre-tax retirement situation (just because context would be so helpful in understanding the full picture).
I watch all your videos and love this format the most. Really appreciate all the work you do.
Just chiming in to say that these videos are my favorite!
I’ve never found other financial influencers helpful, I mean they were, but I knew in my gut that their tips weren’t their best. Yours are actively engaging and realistic. And doable without real practicality for a diverse range of average ppl. Thank you.
This was brilliant. I'm in the UK and sometimes the figures being discussed are wildly unachievable in my context. But these were all realistic and I took something from each of them.
Seriously that is so true!! UK salaries are pathetic..
I like this series on your channel a lot. Keep up the great work!
ISTG this series is so addictive. just got to know this channel a few days back and am now unable to stop binge-watching this.
Tell me about it!! Madly compelling.
Hey Ramit -- Why don't you add a question for them to provide their pre-tax retirement contribution amount per month? I bet it would make the assumptions and advice so much more solid. (This is coming from one of those binge-watching money nerds/fans!)
its going to happen
Love this video, Ramit! Huge public school fan here as well. Don't have to send my child to a public school but I choose to! Not into Silicon Valley private school culture down here in Los Gatos, just personally. Stay at home mom here about your age... a tad older. Worked in the corporate world for a long time but now get to devote a ton of my time to volunteer work in our local public elementary school and I am LOVING it. Thanks for the props for public schools here in your video :)
Junk drawer is universal. I feel a little better knowing that on an income of 22k gross annually i have similar figures to somebody older who is on 70k.
That video editing bit between 37:33 and 37:40 is an amazing comedic touch. Video editor, I hope you successfully negotiated a raise!
6:36 I never thought about it like that. I am low income due to disability and the vulnerability of a lower # in emergency savings makes lots of sense even though percentage-wise it seems like it’s enough but it actually isn’t. Thanks for this insight.
I'm in a similar situation to you - income extremely low due to disability. I hadn't thought about what Ramit said in those specific words, but something I've noticed is how incredibly anxious I always feel about money even though I have a good emergency fund. I've figured out that the feeling is due to housing insecurity - if my landlord ever evicts me I don't have a high enough income to get another rental due to the housing crisis in my country blasting rental prices into the stratosphere (even in tiny rural villages), and my emergency fund is not enough money to purchase a house/unit/apartment/whatever, so I will be homeless.
It's very upsetting that despite being in the best financial position that I have ever been in, I'm still one arbitrary decision by my landlord away from complete destitution.
This is the best type of content!!
i love this channel. Its really a cool insight to see how others are doing and sort of contrast with how my own family is doing. It seems so taboo to talk about money and finances with friends and family.
29:45 The Dave Ramsey shade is much appreciated.
😂😂😂😂😂 spot on.
I think it was shade at Caleb Hammer. Dave Ramsey doesn't scream. Caleb does - and man, is it painful to watch.
@@ElisaAvigayil Caleb is a screamer but that's where the similarities end. Dave is very condescending in his own right. "Withdraw 8%" is totally a shot at Ramsey. He said you can safely withdraw that per year in retirement, and Caleb and anyone else with a brain have strongly pushed back on that. Most reliable sources recommend a 3-4% per year withdrawal rate in retirement. "12% mutual funds" is also totally a shot at Ramsey, who claims its easy to find mutual funds which outperform the total stock market yet. He states he is invested in these products yet never revels what they are, probably because they don't exist. A litany of research suggests its very hard to beat the returns of the total stock market in the long run.
Great to see a single person review. I'm not sure that assuming she would buy the median home as her first home is a good assumption. First homes are usually smaller and more affordable to build up equity. I agree that maybe a house isn't the best idea for her
Love this, being realistic and running some basic numbers that get you 80% of the way to accurate could be life changing. Questioning whether you realisticaly want to sacrifice almost everything just to own a small, single house in a single location which is barely an investment is SO important in my opinion. Even worse here in New Zealand, people seem to trip and fall into a house purchase and will basically bid whatever their bank told them they could maximally borrow.
For #1, the only problem with getting a higher paying job is that you'll need to work all 12 months of the year and maybe get 2 weeks for vacation. Doesn't leave much time for traveling.
It's Temporary. You Will Either Earn A Better Position That Will Give You More Vacation Time OR You Will Save And Invest Your Money Probably Which Will Allow You To Retire Early OR Switch To Working Part-Time And Be Semi-Retired , Which Will Allow You To Have More Vacation.
At @30:39 @Ramit did the math wrong. He is only adding the after tax money ($410) but I’m pretty sure this couple is maxing out 401k pre tax plus a match that is likely around an additional $2.5k a month. So they will have $3.3M in 25 years and can withdraw >$120k a year.
yep, i did some math myself and they're investing over $30K in retirement each year. They *could* reduce pre-tax investments by $1K / mo and still be well on track to withdraw more than their current salary ($108K) in retirement. That $1K should go towards building up their EF massively before being applied to travel, though, and in the future all of their salary increases should go towards maxing out their retirement again.
I think you're right. how do you even account for pre-tax investing on the CSP? do you just subtract from the Gross income? and then Roth IRA which is not deffered would go in "investments"? Very convoluted to see the total monthly investments.
Yeah CSP needs to be updated to include pre tax retirement which is how most people invest
This is what I struggle with on the CSP too! Like okay yes it looks like I'm only contributing a tiny percent to my Roth IRA. But it doesn't factor in the 10% that's coming out already and getting 50% matched in 401k before it ever hits my bank account
@@camille744investments is for both pre and post tax. You know how much your company takes out of your paycheque to put in your 401k, so just add that
The junk drawer expands to all types of people 😂
I’m surprised that a single mother with debt and a child would think she could afford to travel. We cut all vacations and eating out while we had consumer debt.
She is already traveling and saving.
@@paulinenjeru5980yeah that’s exactly the problem
She sounds like she is creating a joyous life.
@@CherieButler Really??? She’s in debt and she has a child to raise.
@@paulinenjeru5980 She's undersaving by quite a lot - for emergencies and her own retirement.
The single mom actually sounds like a divorced mom. It's very different raising a child with no support from the father vs being divorced and getting child support and equal custody. Its no wonder she can travel when there is a whole other parents involved.
Solo parenting vs Single Parenting. I get what you’re saying.
Likely her food and other items are so low because she splits them with the child’s father or doesn’t include child support in her household money (she’s only counting her food and personal items etc).
If she shares custody she has minimal childcare costs when she travels.
I’m 18 years old, studying to become a CPA and EA. I’m a junior in college at SFASU and I’m enjoying your content (as well as the format of this video). 😊
Wow out here in Seattle a lot of HOA fees are more than that Michigan mortgage payment!
I like this a lot, in addition to that if you want to simplify your financial life keep debt to a minimum. Cut expenses. Develop healthy habits like consistently saving money at regular intervals for investments to help you build wealth. If you work on this, your financial potential will grow exponentially. There are numerous opportunities to make money on the financial market. With the assistance of my financial advisor Abigail Ann Ryan , I was able to earn my first million dollars through passive investment in a variety of assets and right now my friend is on his way to a million too with her help. Goodluck!
Truly these are the best investment decision you can make both short term and long term for steady money flow. Kudos
recently started saving for retirement and I don't mind investing a substantial sum, i'd like to know your advisor ?
Look her up, she’s not hard to find.
The thoughts and ideas here are remarkable
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
I love this format. Also very educational learning from various situations. Thank you!
😂😂😂😂😂 CSP #3 When Ramit says "Where did I get that number??? I don't know! Fix your shit!!" 🤣🤣🤣🤣🤣🤣
Holy cow.
I. DIED.
I think the junk drawer is a universal phenomenon hahaha right down to the oven mits thrown on top 😂
Love these videos, I've learned a lot from them, even seeing people with quite higher income than mine, being rich is definitely not about numbers but a mindset!
Why do we look focus on gross monthly income instead of net?
I love these videos so much, thanks Ramit, please keep them coming!
Single woman in the first one. I get her ambition for travel and wanting a place to call home. But she doesnt make enough to afford both on her single income. She either sticks to the travel life while renting, or gives up the travel life to focus on being a homeowner. The only way she can do both would be if her income doubled from what it is now.
At 5:03 that's actually an increase of one percentage POINT not an increase of one percent. When I first heard the suggestion in another video, I wasn't sure whether you were talking about the amount or the percentage point. Even though the term used in the video is incorrect, the visual graph makes it obvious for the viewer what is actually meant.
I love this format thank you for sharing
Yes this format is his best one
Love these videos, Ramit!
He did it twice. In retirement your total income can come down by 30% cuz you no longer have to save for retirement. Going from 108k down to $75,000 is perfectly fine
Love this style and content. Great stuff. Junk drawer is universal brother.
To get a wider stance maybe Casey the single mother could rethink and save her $6k monthly income amount instead of just her $2.3k monthly expenses? If I was her I’d focus on working to get rid of those debts ASAP.
These are my favorite videos!
This has been very insightful
This obsession with travel is crushing people.
Seriously. Travel is fun but holy shit it’s expensive. Especially if you’re talking about intercontinental travel.
True. I also feel like you get a lot of slack when you overspend on travelling versus on housing, cars or other stuff.
It depends on how and where you travel. I often spend much less when traveling. If I began renting out my home while traveling I would break even or make money. I have never regretted any of my travels. I don’t do debt except for mortgage.
For me the obsession of travel is there because it’s nice to see the world but also it’s actually achievable to go on a trip rather than buying a house. Plus a vacation is not a monthly expense where as housing is
go to LatAm and stay in hostels. More fun and more affordable than overpriced hotels in overrated western europe destinations 👍
Something I'd add to the Denver teacher is that there are likely downpayment assistance programs she'd qualify for at the city or state level to help, so while she def needs to save for a house, she could consider programs like those.
For the first one finally a normal person who don’t make 500k plus
I was a teacher for 10 years.. took a calculated risk to get a masters degree for 25k and was able to pivot to a new career that doubled my salary. (Teachers with 10 years of experience in my area in Florida are making 47k)
I desperately need Ramit to review my CSP 😊
People need to understand the power of compound interest
My opinion:
No, to the house for now, especially since there is no down payment saved. She needs to save enough in case her landlord sells the house though.
Pay off student loan and raise the emergency fund to 1 year of expenses.
Subscribed. I’ve watched too many of these over the last few days to not have.
Loved this video!!!
13:30 Yes, let's make a society where teachers aren't payed enough to have a good life, what could go wrong... I'm shure the best of the best will want to dedicate their lifes to the craft...
Yeah.... the drawer problem... I believe it's the world's plague. I have one myself (mid-east Europe), I've seen one at my sister's house in England and even my auntie in Rome, Italy. Thank you for all the clues you give to people - it is always good to listen to you 😎
Love these episodes, but I think there was one pretty large oversight. The investment calculation for CSP #2 is completely wrong because it's not taking into consideration the large amount they appear to be investing pre-tax. The current $190k amount already suggests that they're aggressively investing, and you even commented on it when you saw the Gross vs Net income, which indicates aggressive pre-tax investing. But when you ran the investment calculation, you only put in $410 as their contribution amount. They are very clearly investing much more than $410 per month. This is actually something I adjusted on my CSP; I adjusted and calculated the numbers so that the sheet actually shows and accounts for my pre-tax contributions. I'm glad Emily and Steve caught that, but it might be something worth baking into the CSP.
Ramit, why did you completely ignore that the second couple is likely maxing out their 401k when you projected their retirement savings? I am confused why cutting that pre-tax savings rate was not considered. Assume your team missed this. Avid watcher, excellent content overall. Thank you
We had 3 junk drawers. I emptied and cleaned out 1 so for the last several months we’ve had 2 junk drawers and 1 empty drawer 😂. I don’t know what to do with the drawer space now! It’s been junk for 4 years! This is an analogy for my CSP. I need to send it in…
I’m 26, I have no debt, putting $1,200 in retirement a month, make $130k a year, but no house yet. I still feel guilty buying things I want. What is wrong with me? Feel like I’m doing everything right though.
This is just my 2 cents, but do you know exactly what you want to do with your money? If you make short term (yearly), long-term (5-10 years), and lifetime (retirement era) goals you can figure out what you need to get there- money-wise, mental health wise, relationships to establish, etc. Knowing this and having a plan with the right people in your circle to help you grow will probably make you feel more stable.
Talk to a therapist in case there’s something deep rooted making you feel guilty for spending your own money.
My guess? You might come from a family of extremely frugal people, probably you observed some financial strain on the family as a kid, and internalized the tension that came along with "unecessary" or unexpected expenses. It's hard to shed, but it really helped me to reflect on my long term goals, then set monthly targets for investing and saving- transfers executed the day I'm paid- and any excess is mine to spend as I want. It's harder to feel guilty when you're working toward a goal and you know you're doing a good job with money management. Basically, following Ramit's advice is very helpful lol
What if you were to have a separate checking account you transfer x amount into each month, after your retirement, short term savings, bills, etc, then using that account ONLY for fun money? It separates it out from the rest, is a set amount you earmarked for living a life you love, and you can spend it without consideration for anything else. Make a list of things you think would make you very happy... then go down the list. If there's a chunk left at the end of the month, consider a donation to a cause you care about.
Life changes. You might be living high today, but true security is an illusion. Something could happen down the road and you're struggling. Live your life, don't wait.
Hi Ramit, I love your content BUT I am based in Ireland where investing is really hard to do and is subject to gigantic tax of 41%, so really I would have to go very high risk to see results like this. Would you have any recommendations on how to grow your wealth in this situation?
I appreciate Ramit's content, but I have a couple of questions. First, when reviewing investments, I’ve noticed Social Security income isn’t included, even though it can replace up to 64% of earnings. Is he assuming Social Security won’t be available in the future? Second, when assessing home affordability, why does he use the median home price instead of considering a person's current income? There’s often a lot of inventory available below the median price.
It's better to not expect social security and have an extra 2000 dollars a month than expected to have social security and be 2000 dollars short
CSP3: high yield investments are really a way you can go, but:
1) There might be more risk involved then you realise
2) They're probably not going to grow as fast, making Ramit's general 7%/year growth calculation unfeasible.
I like how your comments aren't filled with bots
nice to not see certain dark colored token being advertised or an elderly couple who happens to be in every finance video comments who are VERY worried about the price of gas in the future
@@sarahallen8739 Or that someone has $300k+ in liquid and does not know where to put all their cash. Then someone pops up and says to use their FA
Loving this format as well as the couples too, already on waitlist for the new book, and waiting to see you live hopefully in Miami. Question: how to calculate how much you will have by retirement. Would love to play around with my own numbers . THANKS ❤
You can search for a compound interest calculator, enter how much you have invested now as the starting point, how much you plan to invest per month (pre-tax and post-tax accounts), enter the average annual return (Ramit recommends 7%), and how many years until you plan to retire (Ramit usually uses age 65). Once you get the ending number, multiply it by 4% (per Ramit's guidelines) to see how much money you can withdraw from your investments as income per year (before taxes).
Use a compound interest calculator, there are many available online.
Then play with variables (rate of return, monthly/annual contributions, etc).
For the spending plan #2, it’s interesting that you didn’t mention there’s $0 for debt, but they’re in $35,000 of debt. Did you miss that or was it intentional to not hit on it?
I think it is the mortgage because they said they were almost done paying it off
Love the video! I just have a few questions related to investing that I would love to get your opinion on. Do you have any suggestions regarding dealing with 401ks? Do you suggest combining different 401ks from previous jobs into one account, or transferring into Roth or Roth IRA? Would you have or would you make a video about best ways to invest in regular brokerage account? For example, i personally dealt with cancer and I’m only in my 20s, and it’s likely that I will experience this issue continuously and won’t be able to treat it. Opening a retirement account and constantly only investing into it wouldn’t make sense for me because I’d have to take money out early regardless before I turn 50 even, so I’m just faced with penalties. But when it comes to investing in general everyone just seems to be talking about retirement accounts and nothing else..Thank you!
I can relate to this one!
Please do more of these videos!
The mom/teacher is probably putting 10% or so pre-tax into a pension with a state/district match.
Even small side gigs can help you reach your goals faster without sacrificing your current lifestyle.
Love these
Hey Ramit, do you look at people from outside the US?
I know he’s done couples from Canada.
I have a question when you talk about investments what do you mean by that and why kind of investments we can do. As I leave in Pakistan making good amout of money but cannot manage my finances and no saving, no investments. That's rising my blood pressure every day. Thanks
Love the shot at Dave Ramsey
According to the chart, this is excellent.
How does someone add a pension to the CSP?
Doesn't apply to the CSP. When calculating what you need for retirement, use the pension to decrease how much your nest egg needs to cover.
@@arh1234 thanks!
This template needs to include info on how much pre-net is being invited into 420k/hsa
Absolutely! Drives me crazy and makes his “are you on track for retirement” completely worthless.
He also needs to have a note for categorizing the debt and assets!
The junk drawer is universal but not the $2k miscellaneous budget lol!
I love Ramit’s videos, as a UK resident I can see a lot of advice that is transferable across the pond, are there any examples of International csp’s as US wages seem really high for fairly average jobs! The one thing that irks me slightly is that mortgage costs are treated the same as rent in the fixed costs section, this is made up of interest and repayment, which is reducing the debt over time and giving the participant’s greater net worth (similarly with debt / loan payments) and making them richer over time. Would love to hear if you have any thoughts on this.
The first one is a regular person. The second and third are among the immortal top 5 percent.
Will we be getting a new netflix show any time soon 👀
Sure hope so.
I wonder y Ramit is so against buying a home. Best choice I've ever made.
Ramit is not against buying a house. Ramit is for running the numbers
With the way some finances are throwing some shade to other channels, id love to see an AI version of Caleb, Dave Ramsey, Suze Orman wrestling. Caleb high pitch screaming at Dave and Dave using his mechanical shotgun firing stupid shells
Ramit the thumbnail for this video shows a BOA account and rent for somebody at $26,930 which is kinda wild lol
I have A pension and a 457b. Just opened a Roth IRA. Should I open a taxable brokerage too?
The junk drawer is universal Ramit😂
@15:15 Moving money from the kids college fund to personnel investments did not increase money by "170 thousand from making a flip of a switch". All you did was move money from the kid bucket to the personal bucket. If her rich life is making sure her kid has funds when she is 65 or her kid is older, there is nothing wrong with that. Math is math, but there was no increase in money, just a change in its bucket.
I mean she is switching the money from someone else to her. My kid's money isn't mine. I've invested it for them. So to me that would be a switch. It's also riskier to invest in a college fund because the drawdown for an education fund is a short 4 year period whereas as a regular investment it can be invested for 30-80 years (or more if the kid inherits it)
Technically with compound interest it is more. The $100/month would compound with the money already in her investments and her current/future contributions.
@@sarahb8073 you can roll the 529 into a ira for the beneficiary, send it to another person like a grandchild. You can even pull it out for non education expenses and pay a penalty. I just think my point is that he made a REALLY big deal about 170 thousands being created when it really isn't. My main point though.. if someone wants to save for a house, save for a boat, for 1st class tickets, or wtvr.. thats their rich life. And if someone wants to do that for giving money to their family, thats a GREAT rich life. For some.
There is no guarantee that paying her kids college will ensure that the kid is doing good when Mom is 65. The kid can still fuck it all up and be jobless and have to rely on mom for support
I feel personally attacked about the shoelaces lmao
haha i like the portion where ramit said he loves public education when he went through the numbers for the middle school teacher and he mentioned he went to public school all the way up to high school. but not college! cuz he went to stanford growing up in the bay area instead of cal :p lol just giving you a hard time; it'd be hard for anyone to turn down the opportunity to go to stanford
In some state if you contribute to a 529 college fund you get a break on your state taxes. So you should take that into consideration before saying don’t put money into a college savings plan.
The couple doesnt want to buy into the stock market at the wrong time
...So they are considering buying into one of the most inflated housing markets in history
Anyone notice the number formatted incorrectly in the thumbnail?
See you in DC bro!
Middle of video shade thrown towards a certain Dave XD
Hi, can you talk about investing 10-16 percent in your 20s and 30s then dialing it back later on in life but the compound will be there. Sorry for the stupid question but invest it in what exactly? I’m about to start a new career and I want to do this as I am in the position to do so. Thank you so much.
Check out the investment chapters in my book: iwt.com/book
Where are taxes and health insurance in the csp?
CSP #1 is weird. Is there child support or a roommate not mentioned? The numbers just don’t make sense
I’m assuming she’s not including child support or her child’s items if there’s shared custody. Even if her child is only with her 50% of the time they still need personal items and food for more than $400 a month.
I think the fixed costs on the second review are inaccurate because they used the wrong net. If the net was only net after taxes and they included the pretax 401k in the investments section then the fixed costs would be a lower % and the investments would be higher %.