Why People Making $200k Are Still Broke
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- Опубликовано: 19 янв 2023
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Even though my wife's grandfather didn't earn much, he retired with over a million dollars. He saved $75 from every paycheck for 45 years and was cautious with his money. If he had invested in mutual funds, he could have been worth several million. It's not about how much you make, but how you manage your income.
Varied sources of income is wise and especially living within your means. My net worth is $2M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
Money advice is subjective, what works for you may not work for someone else, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted a CFP to handle growing my finance. As of today, I'm only 25% short of my $2m goal.
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your CFP?
I don't comfortably throw recommendations around on the internet, but I've been working with 'Theresa Dana Peek'. God, she's brilliant! I'm sure there are others who are good.
@@Ammo-Hoarder Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
I made 104,855 last year. And I'm only 6800 away from being debt free. Super stoked 🙌
That’s AWESOME! Congrats!🎉
Beautiful! Great job!!
Safety and security is the best feeling in the world. Also having options and not feeling strapped down. Enjoy your journey... you will be free soon 🙌🙌🙌
Awesome!! Congratulations!
That’s awesome…keep the discipline. Once that tumbleweed is rolling in the other direction, it’s gets addictive.
Live below your means, your lifestyle should always be lower than your income. I’m 70, finally retired at 65. I have 35% of my investments in an IRA, 25% in index funds, and the balance in an investment acct. I receive income from rental property too. Zero debt. Everything is working well 👍🏻
I agree with you a hundred percent. Living below one's means is so underrated and opens doors for one to do better things with money such as saving, investing and more.
I live well below my wages, it affords me resources to search for worthwhile investments. I need a scheme to generate an attractive % ROI predominantly in quality debt and market securities. One that could take away exposure to equity. You seem to be doing quite well for yourself francis. Do you achieve this via a consultant?
@@ramonfred Yeah I use a consultant who's licensed and proficient. He places a sizable portion of my capital in fixed-income securities like treasury bills, corporate bonds, government securities, and debentures. He also manages over sixty million dollars for clients worldwide in ETFs, stocks and REITs.
Whether it’s long term or short term, profits are guaranteed with his strategies.
@@callumfrank Okay is it possible to get in touch with this person? If so please let me know
It's not about what you make, it's about what you keep!
Its not how much you earn but how you spend it!
Except at the very bottom where people can barely afford their rent even being tight with their money.
Profit over revenue
@@suen5006 the very bottom is less than 1% of people... MOST people can do well over time but MOST will always remain middle class
If you make $100k, live like you only make $80k. If you make $80k, live like you only make $60k. The concept is easy. The implementation is not. But it IS possible.
We find that the key to living "debt free" is to live below our income. There is so much peace with this lifestyle.
Exactly.
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Agree✊
Its the only way. We live well below our income and have a great life.
So glad to live alone, my space, my money habits, nobody else getting in my road. :)
Big car payments, bigger house payments, someone else cleans their house, someone else gets their groceries, someone else cleans their car, someone else mows their grass, out of town all the time, eating out all the time. They also have a habit of replacing things that function just fine, but don't have the latest and greatest style to them (clothes, shoes, furniture, appliances, kitchens, bathrooms, it's never-ending).
People who make 100k+ and are broke are broke because habits they initially formed scale with their income. Behaviour is key!
bingo ego
I totally understand how a family earning $100k could be living paycheck to paycheck. My husband makes $82k a year. After taxes and insurance, he only gets to keep $57k. We just found out that we were $6000 short on our federal taxes for 2022 despite claiming zero deductions before tax return so we lost our entire CTC. Factor in inflation and all the most important things for survival have gone up either 50% or more than doubled (groceries, utilities, gas). Thank God we have a mortgage. I can't imagine paying today's rents. We survive, but it's extremely tough. We don't buy soda, alcohol, packaged food, fast food. No dates, no new clothes, no luxuries. We only have 2 subscriptions that total less than $20 per month. He can only afford to invest 5% into retirement and there is not much money left at the end of the month to put into savings if we have to replenish our emergency fund. Only reason we get by is because we have no debt. I never would have said $100k wasn't enough 3 years ago, but this inflation is just unreal.
I'm asking with sincerity and not sarcasm. Have you thought about getting a job?
@@fonz-ys6xu not worth the few hundred dollars I would pocket after paying for daycare. I'm not paying someone else to raise my 3 kids and counting and end my son's ABA therapy services?
Save on payday, not the end of the month.
@@americafirst9144 we already do that, but it doesn't matter since we budget every single penny and whenever somethings unexpected happens, we have to draw from it. It never increases by more than $200 per month.
@Corinna If you don't mind me asking, is your mortgage payment more or less than $2,500.00 per month?
Great video but if you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life, Successful people don't become that way overnight. most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life too 🙏🙏🙏
Hey I'm new here, what exactly kind of investment are you talking about here please I'm interested too
Obviously these investment requires much cash and concentration to start?
you're right Forex trading is surely a lucrative way to invest whether you want growth, leverage, stable income or something in between.
yeah for sure, honestly I made 62,800 dollars within 6days of trading with Bit coin.
It's really profitable for me and and I will encourage anyone interested should invest in it now 💯
This reminds me of HGTV. Wife is a dog walker and the husband is a caterpillar collector. 2 kids. Budget for a house is $1.5 million.
🤣😂🤣
the reality is that a lot of these people are living off their parent's money. They can't give reasonable advice because they dont have experience being in the working class.
Hysterical
😂😂😂 well done
In a lot of states making 100-200k can mean you’ll lose almost 50% to taxes. Not only income taxes but the other taxes too. Property taxes, consumption taxes, corporate taxes, taxes, taxes, taxes.
Especially if you don’t have dependents.
Sounds like you're trying to create an excuse. You have the right to choose where you live.
If you can't afford property taxes and the other taxes you mentioned, then you just answered your own problem, which is: you can't afford to live there.
@@fonz-ys6xu people can’t just move to avoid paying large amount of taxes. As an example, where I live I make $75 an hour in my job but if I work in another state I’ll probably get paid $40. 2nd, family connection. All our family members live here, why would we move somewhere where we don’t know anyone? 3rd, there are pensions to consider in our current jobs, why would we leave that? There are ways to budget and save without relocating.
I'm not trying to give off a bad attitude here. But just like Dave says, this is a math issue.
You can choose to live somewhere and not afford to do much else than pay taxes. Or you can choose to do something about it.
As for your argument of making less in another state, I bet the cost of living is less in that state where you'd make $40 an hr. It's all about what you do with your money. It's all a choice.
Hm, I always thought high-income earners were rich. I guess that was naïve of me. And I’d like to think that I’d never be broke if we made $200K. We actually only make $53K on one income while raising children and paying off six figure debt. We paid off $26K last year and $33K the year before that.
So what Rachel is saying makes sense-the income doesn’t matter if budgeting, spending, etc isn’t managed well.
And thanks for the encouragement, Rachel! Living below our means really is difficult, especially for us as low income earners. We’re having a birthday party for my little girl tomorrow and it’s so tempting to do more and more and more. But this video was a good reminder to stay within our boundaries❤
You're doing great with your goals for not being a 200k+ income! Just don't forget to start investing that income after you've got that debt paid off!
Please share how on $53k a year you paid $26k in debt - the math does not add up when you need to add in paying rent/mortgage, utilities & groceries.
Maybe they don't have rent or mortgage. Temporarily living with family?
Congrats for your hard work. Your sacrifice will reap a greater reward soon.
Happy birthday to your little girl! 🎈
Thank you for this wonderful video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong?
Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong
I strongly advise you against self trading, it's really dangerous and had brought so many investors down, you need someone with the knowledge and strategies, someone dedicated to the crypto currency market business, and I will strongly recommend expert, Mrs Janet
Wow I'm just shock you mentioned and recommended Expert Mrs Janet,I thought I'm the only trading with her
YOU DON'T NEED TO BE SHOCK BECAUSE I'M ALSO A HUGE BENEFICIARY OF expert MRS JANET
I'm a huge fan of crypto, I hold few coins in my wallet, while I trade the rest with my Expert, Mrs Janet She's really Good
Lifestyle creep is something to watch out for and many people are susceptible to it. A really good question to ask yourself is "If my income were half what it is, would I still buy that thing?" If you hesitate at all it means you don't really need that thing (and if you didn't buy that thing when your income was half what it is now it is a much bigger clue that you don't need it). It is extremely important to stay grounded as household income increases and stick to basic wealth-building principles. It is very easy to think "I've made it now so I can spend what I want" when that is not remotely true.
So what's the point of earning a high salary? So you can have savings in some hypothetical future?
Overbuying on their home and refusing to buy modest used vehicles and pay cash for them are the big reasons many high income earners live paycheck to paycheck or close to it. Furthermore, many chose to accumulate all that extra debt before paying off their student loans, so they put themselves in an even worse position. You can always outspend what you earn.
What really had me accelerate my savings is my Dad passing away last year at age 65 . I’m 40 now and was planning on retiring at 60 but I’ve changed that to age 50. I figure if I suffer the same fate that gives me 15 years to enjoy retirement(hopefully a lot more)
Hey, thanks for sharing. I'm in similar boat and feel the same way
If you can't manage $200 you won't be able to manage $200K. Every income level is susceptible to the idea that you are not in control of your choices and that it is some exterior thing that is to blame.
People also sometimes buy more than they can afford so it might be an income issue not a behavior issue.
thats not true, where can you pay for rent, utilities, groceries, etc with $200?
@@sp123 Yeah almost impossible...
Women will spend money like it is water for things they don't need. Just to impress other people. I know many single guys that are doing well financially. But single women that are NOT onlyfans models seem to just spend what they have hoping to find a rich guy.
I can attest to lifestyle creep. I made $100k in 2022 yet, basically live paycheck to paycheck. The good news is that I’m $5k away from paying off two debts. Once those are paid off, those two payments worth will be going directly into savings each month, and that should be a huge help toward building a nice cushion.
Don’t forget to invest some of it and put money towards retirement!
@@mikellyartisan1384 Definitely 👍🏼
yes debt is the first thing that should be addressed before saving
Thank you for this video! I love the stats and reality of money! Your videos have such digestible information and it is so helpful. Keep on doing what you are doing!
Nothing beats contentment and living below your income.📌📌
I've seen people at my job get a promotion for like $6K, which would put them between $75K and $85K annually and the next thing you see is them driving a brand new luxury car (Lexus, Audi, BMW and Mercedes). I also see brand new Louis Vuitton hand bags.
I have friends that were living paycheck to paycheck when they were making $50,000 and are still living that way now that they make over 6 figures. It's like you've talked about before, it's lifestyle creep. They redid their home, upgraded their cars, phones and toys. I'm not judging, I'm guilty of it myself at times. I can see how easily it can happen. Just because someone starts to make more money, they don't suddenly become a new person and handle money differently.
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Im guilty if this too, but then i cut corners and plan out in areas i can to keep parts of my new lifestyle, so that i pay premium for the things i want in life
When I got a pay rise, I continued to budget as if it wasn’t there. I refused to give in to lifestyle creep.
Discipline, save, invest, lower expenses, live less than your income and stop buying things you truly don't need and can't afford.
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Awesome video Rachel. DIRECT HIT 👌🏽🚀🚀🚀
wealth isn't about what you make, it's about what you spend!
No when I made 10K I was multiple times poor than when I made 20K. Income does matter it is just not the only reason.
REAL wealth is the number of income streams you have. A person needs seven income streams to approach the 'wealthy class'.
@@Brian-dh9lp Not true either.
And also what you keep. 💯
@@morelife7625 Yes and no. Wealth means you can spend what you receive without much consequence, if the income streams are reliable. Many investors, celebrities and money managers worth millions go broke. But that is usually because their ego gets the best of their common sense. These people might be considered Wealthy, but only for a short time. Real wealth will outlive the person.
It’s so hard when you get the higher income to not spend it. We made on average $50k for a decade as a 1 income household with 5 kids. My husband got his break 3 years ago and we have made on average $200k for the past 3 years and on track to do it again (commission). I’d be lying if I said we each didn’t have moments of ridiculous spending but luckily we did manage to get some debts paid off and we refinanced to a 15 yr mortgage at 2.3%. We put money into 401k and IRAs which sadly have taken a hit this past year and we saved $70k in a saving account. We could have done so much better but you live and learn.
you have 5 kids, spending $200k/year is not a stretch
After taxes and rent, 200k turns into 90k max in ca, assuming you are renting a cheap 1 bedroom apartment. Good luck if you have kids here.
Rachel thank you for all of your fresh content you work really hard
Because their expenses are $200k. They spend it all.
If they made $300k they would spend that too. 😁
Bingo
Well they might have never declared bankrupt.
No, their expenses are $250k, lol
Yep!
So many people are living above their means. Buying and owning homes that costs way over what they can afford, then end up living paycheck to paycheck or having to be super frugal with their monthly budget to own their homes. Shouldn't jump on the band wagon to do what others are doing without reflecting if it's a good fit for your life. Be patient and find happiness without comparing self to others.
Pay yourself first 🙌 Great video, Rachel!
Live within your means regardless of income. I am on SSI disability. I don’t like it but it’s what God has given to me. I’m able to help with some of the household expenses. Still living with my parents but I do my best to improve my situation and I refuse to go into debt to do so because it won’t help anything
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So so true! Amazing video Rachel! ❤
I've created a budget for this whole year in January. This way I know how much can I be spending on groceries, cosmetics, etc. not only per month but in the year, since some categories vary, like medical expenses. I accounted for 10k annual variable spendings. I was at around 12-13k in the past 3 years, but because my fixed expenses went up, I want to decrease the variables. I spend max 50% of my take home income monthly but ideally aim at saving/investing 70%-90%. It costs me lots of sacrifices but I'm fluffing up emergency fund/sinking funds/house downpayment/retirement/investments. I'm renting an awful gloomy place in unsafe area and hate every minute of living here and fear for my life daily. I'm telling myself just few more months to set me up for life.
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No mortgage, car payment or personal debt. We make a combined income of 40k per year. Paying cash for the next car.
That’s great to hear. I make $200K, paid off home and no debt, family of 4. And I always pay cash on cars.
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My spouse and I make low six figures each. We live off one of our incomes, the remainder goes towards extra on the mortgage & retirement. It's easy to let lifestyle creep ruin any income increases without the right mindset.
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Very, very wise 👍🏾
So well said Rachel
$200,000 doesn't get you far in metro areas of California (Bay Area, LA, San Diego). If you live extremely frugally there you'll just break even.
True, how you explain the median household making $70k then if $200k doesn't cut it? Isn't what you earn but what you keep and minimize expenses.
Location location and location. Making $200K and living in the SF Bay Area or Manhattan means nothing. If living in Nebraska, that’s another story.
Ya well Bay Area, LA, San Diego, NYC, Boston, etc are by FAR the most expensive places to live in the USA. U spend 1 million to live in a Shack in those places.
@@jml9550 u don’t have to live in Nebraska for 200k to be a lot.
@@9770G I just use Nebraska as an example. There are plenty of place comfortable at $75K income.
I wish she would talk about how people on Social Security and how they can improve their lives living on a very fixed income
Get a job
Sell things they owe money on
Move in with their adult kids
Other than that what do you want her to tell you? Create and stick to a budget? Hard to stick to a budget thru a massive inflationary period.
What in particular would you like to know?
Hud housing is the biggest thing but the goal is not to set yourself up for that situation when you are young and still working.
Dried blueberries and oatmeal everyday for lunch. $2.
God bless for your teaching and guidance ❤
When I report my income this year for 2022, and for the first time since like 20 years ago, I managed to survive making less than 20k! 😂 This was easier a long time ago when things were a lot cheaper, like rent for a townhouse used to be 700-900 dollar range collectively, but it amazes me I was able to survive now.
Good for you!
After taxes, multiple cars, vacations, shopping sprees, kids' college educations, and instant gratification, there might be nothing left.
Perfectly said!
Only if a good amount of folks do what you guys teach, just imagine how many millionaires we already have or will have in the future. Not the sad statistics where at least 50% of people are living paycheck to paycheck, even for high income earners. Great contents as always!
I have been telling myself for years to do what is necessary: open a brokerage account, buy ETFs or whatever, just play it safe. My last five or six New Year's resolutions have included this. However, I can't force myself to do it, for some reason. I think it's time to admit that I'll never be the smart, thrifty, DIY investor like all millennials are supposed to be
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I could care less how badly a lucky person spends their money.
How they treat others in order to obtain that money is more of a concern.
I have a friend that grew up poor and still poor to this day. One thing she knew and told me years ago was “the more you make…the more you spend “. I had no clue what she meant but I know now and I still wonder how…to this day…did she know all this…since like I said she never had money and still doesn’t ..and mostly hung out with people that didn’t have money. I can look at comments of people saying they thought anyone making that kind of money was rich…and up until maybe five years ago…that is what I thought tooo. And btw..I do not have money. But I do have family with it. The funny thing is though..I actually have family members that are living way way below their means and I grew up thinking you pay cash for a car for instance. I have in debt family members tooo…all I can do is shake my head. But the ones who spend correctly is who I was around growing up.
I’m living paycheck to paycheck, but only because I’m gazelle intense on paying my house off by the end of the year.
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People always spend on items they don't need. Instead of saving for the future (house, car, retirement) they waste it on the following (and it adds up: Paying for 4-6 streaming services, buying $5 coffee everyday, driving a $60-70k car when a $40k car is fine, eating out WAY too often since eating at home is x3-x4 cheaper, going on 1-3 vacations a year, etc. There are so many but the main ones are eating out too often, expensive car, and vacations.
a lot of us making 6 figures are living paycheck to paycheck because it took a lot of debt for us to get there. Now we're aggressively paying off that debt which doesn't leave much room. The issue for a lot more than a lot of people is not living outside their means but realizing their means aren't much for now due to what comes out of it. paying 5k/mo for some of us means getting out of debt in 2+ years
Yes… so true…my close friend makes FAR more than that ($350K) plus bonuses and she simply spends it as fast as she can…on more expensive items…and is miserable. She is 60 days past due on a mortgage because she wasn’t “paying attention” for a home she built 36 years ago. Yep… refinanced over and over to pay off credit cards. At 1/3 of her income I have none of her problems and am debt free. Trying to help her is of no use…she can’t control her spending.
They should really have a course in high school regarding finances. It should be required period. However, that won’t happen since it will make it harder for credit card lenders to prey on college students.
When we have extra income, it gets saved for future family trips, home repairs that will inevitably happen, or saving for future car purchase. We act like it's not there and live like we are used to living on the lesser income.
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In my profession, people are expected to have a certain lifestyle - high-end foreign car, huge houses and fantastic vacations. Given the amount of student debt they accrued to get to this position along with a high tax bracket, it can be a prescription for disaster.
I would love to hear you discuss how to have peace of mind in retirement about potential eventual nursing home costs. Such as a couple who had been frugal their whole lives and have assets of a million but want it to go to their kids not a nursing home
Loved this video!!!🤑🤩🤩🤩
My parents divorced in 1972 leaving me vunerable at age 16. I struggled through junior college, entered the Air Force and served for 24 years. I married a poor woman from the Philippines who became a nurse. We bought a home and paid it off. We put 2 sons through university, they have professional lucrative careers. We helped her family in the Philippines. We helped my South Carolina family. We have money saved and just won a federal lawsuit. We are not happy with what we see around us!
I've always been surprised by how many people in each income bracket live paycheck to paycheck. But so many times, I've seen people and heard stories of people making tons of money a year that end up bankrupt and don't have much to show for it. It's not easy, but I've continually worked on lowering my monthly expenses and raising my income to the point that I now live on about 40% of what I net and less than 50% of what I gross. I've a lot of friends wonder why I don't buy more toys or cars, etc, and it seems backwards to a lot of them, but there's no comparison to the peace and control I experience in knowing that I'm not in trouble if an emergency comes up or I have to find a new job.
No judgement against my friends or people who like to spend their whole budget on fun. I get why people do it, and they often have fun stories of vacations and other things they go on. It's just my experience, and what is said here that when you have control of your finances, everything just goes much easier.
It’s the big fancy house in the prestigious neighborhood. Ive never understood needing the big house
I never understood paying rent to live in your own home (taxes)
Not many small houses built.
It’s easy to live above your means, or just at them. My wife and I scratched by when I was the sole income making under 40k in the military. Now we make above 200k and certainly live a lot better, but we remember full well how hard it was years ago.
Never going back to that… living well under our means.
some millennials fail to do one thing right which is INVEST. I made my first million from blue chips and top etfs using a broker so i invested and re-invested my profits. I also acquired large amount of high-quality dividend-paying stocks too that gives me a solid base of passive income. ever grateful to Susan Kay Mack handling my portfolio, two years now and he still surprises me
The thoughts and ideas here are remarkable
I did read about Susan Kay Mack on the web., quite a great resume she has
I also think that we salary earners need to realize that monthly income will not make you rich.
Did a quick web search, she has a pretty decent bio, I wrote her and I'm waiting on her reply.
Same goes for Gen Z
First and foremost. Max out your 401-k. Not the company match. The government limit. That money is not taxed until later in life. If your wife or husband is working and not making that kind of money. Do the same thing. That's over$ 22000.00 dollars that is not taxed. For each of you.I maxed out every year and I never grossed that much. If your at 4% at work change it to 30% or whatever it takes to max out the government limit. It's all about taxes, taxes taxes. That money will be taxed at a lower rate when you retire. Be smart. Be different. We both retired at 55. Work sucks.
Absolutely. Cut down on taxes as much as you can.
Living below ones means is powerful 💯
Because they spend all their money
Haha, common sense is still alive 👍
They may have spent it before they had it....
@@donaldlyons17 Possibly.
One principle that has held our finances to scrutiny and intentionality from making $13/ hour back in 2009 all the way to (1,2,3, etc)00k / year income, is always having a 40% savings {Retirement + Brokerage Investing + HSA + Cash} when times are good, or bad. Live on less than you earn (1), and that money and income is not a measure of success, wealth is (2), and finally money does not make someone a better person, be humble and kind and graceful (3). We've been doing this for so, so, so long that there simply is no other way to live. If it's not 40% set aside each pay period, its not happening. There is always a way with less, and its often more fulfilling, liberating and rewarding.
📩✍️👆👆👆.
what should be on everyone’s mind currently should be to invest in sectors based on performance and projected growth, pretty much how i made my first million. Especially with the current economic crisis around the world. i'm taking advantage of the low prices. I have a diversified portfolio that spread across stocks, grade bonds, coins and etfs. my broker James Fletcher Brennan, handles all my investments and ensures I stay above the market.
Impressive!! Also, I did read about James Fletcher Brennan on the web, I was able to find his webpage and leave a mail. I'm willing to make consultations to improve my portfolio
love this!
The funny thing is you’re not wrong, it took me 5 years to stop trying to predict what’s about to happen in the market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain lol. I just searched your guy on the web. I’m not gonna lie I’m impressed.. he’s professional, mature and he’s worked with some really successful people in the past.
he really seems to know his stuff. I also found his online page and read through his resume, educational background, qualifications and it was really impressive. he is a fiduciary who will act in my best interest. So, I booked a session with him
just did a google search and found his webpage. I must say his resume is pretty impressive.. will be writing him shortly.
Unfortunately our grocery bill has doubled with inflation as well as other things of course. I have said it so many times that I don’t know how people are making ends meet. We claim zero dependents and still end up owing money every year. We have done our best to save, but it’s hard to save much with all this inflation hitting us. We don’t have any debt other than a mortgage and bills. I hope things can turn around at some point.
Take a second look at that grocery spending. With inflation, mine has almost reached 20% over budget at times. But I get it back in check by doing better and employing the tips and tricks I’ve learned from others. I hope your statement was a rough estimate, but even if it wasn’t, you really can do better.
I knew a person who used to make 140k USD in Ukraine annually, and in Ukraine it's an astronomical amount for a working guy, he wasn't a businessman.
He somehow lived paycheck to paycheck. Literally.
You can spend any amount in a day. It is an attitude.
Question for everyone. I am on baby step 4 making a little over $70k a year. I am renting and saving up for a down payment and closing costs on either a condo or a house (haven’t decided yet).
However, I am struggling to figure out how much money a month is okay to spend on fun for myself. Any suggestions?
Thank you 🙌🌼🌺🏵🌻🌹
I make that money but live as if I make 80k a year!! And nope I don't feel that I'm missing out on luxury items or fancy dinners or expensive clothes!! Happiness in small things and lots of saving is my mantra!!
Very interesting. What about people who have a high net worth but low income ? Please make a video on that too.
I made $44,000 last year and I don’t live paycheck to paycheck. Should make $60,000 this year. I plan on giving myself 10% more for myself, the other 90% will go to retirement and growing my emergency fund. I honestly don’t believe in lifestyle creep. You either live within your means or you don’t. Simple.
I don’t get it, live below your means!
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Are you stating the income before or after taxes and deductions like health insurance?
Whoa, I've been an avid SDer for over a decade, crazy to see them sponsor a video, though I suppose they've been doing sponsored listings on the site more often these days. Used to be easier to get ridiculous deals back in the day, but it is a bit more difficult now that there are more people watching it. Still, at the risk of sounding like a shill, slickdeals is legit, y'all. It's my first stop whenever I want to buy almost anything outside of groceries.
But yeah, lifestyle creep is a real killer, which is made doubly worse by people borrowing against their future. Lifestyle creep before you can even afford it! I was definitely one of those people until I finally snapped out of it in my mid-30s.
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thats cool but i need that new gmc sierra elevation and the wide body hellcat challenger
This is mind boggling cause you think people will be smarter with their own money since they make so much. However some people who make less money than some of the high income people are managing their money a lot better.
$200k is the new $100k
Im guilty of this as well, me and my wife work very hard, from both serving in the military, janitorial work, puttin her through nursing graduate practitioner school. Together we make nearly 180k a year. We have no fancy cars, small 1450sqt foot house. And live paycheck by paycheck because i failed to budget our finances. Its unfair to her. She deserves better after working so hard we should have something to show for it. I know many who make less and live stress free and healthy financially. I need to get it together as a husband and father.thank you for this video
Don't give up that 1450 sq ft home! We had 8 people living in a smaller home than that and we all made it OK.
I understand completely; don’t give up. We are in a similar situation - we are living paycheck to paycheck because of our lack of budgeting. You can make changes and get in a better situation, I know we will. Tell your wife that you want better for both of you and make a plan.
Majority of my paycheck goes to daycare. I have three kids and we pay 2k month just in daycare and after school care. i am left with a few hundred to cover food.. lucky my husband work so he take care of the mortgage and insurances.. just to survive we both need to work..
Remember- it’s not how much you make, it’s how much you keep!
You really need to understand just how bad inflation is… people just say it like it’s a bullet point and move on.
Most people have an idea of the value of money that becomes a fixed point of reference for them for most of their life.
For me, my idea of the value of a dollar is rooted in about 1996. So my idea of what $100k is requires $189k.
To have what I feel is $100k after taxes would require $260k gross in todays dollars.
As someone who lives in the DMV area. The reason is state taxes are incredibly high so they take $200-300 every check. Then when people start making 100k+ they spend beyond their means. I am working on making 200k in the next 2 years in IT and that's about 10k a month.
You could easily get a home for 2-3k a month
pay all your phone\internet and water bills for 1k
save & take care of your kids health insurance $1k
Car payments $1k ( married, bread winner)
Point I am getting at is with all this money you are just wasting it. I make 86k right now and I made terrible decisions that last year that I have no choice but to make more money pay them off and do better financially. Otherwise I'll be stuck forever.
We were pretty comfortable till we bought some land to start farming. I’ve never encountered such a money sink endeavor before. We consider selling out constantly. Even with substantial tax breaks, it takes everything we can make to keep it going.
It’s not about how much you save or make. Spend every dime you make until you leave this planet. There is no right or wrong way to live. Trade the money you make for the things that make you happy. But don’t go broke before you leave.
200k in a tax heavy state after taxes is only about 130k. Generally you don’t get any tax breaks. In California and New York, it’s pretty much impossible to buy a decent house under 1mm, that’s 60k a year going to your mortgage/house insurance/property taxes a year. If you have 1 kid, it’s 30k a year in childcare. That’s not even mentioning student loans or if you have more than 1 kid.
The problem is taxes take 40 percent and houses food and cars are up multiple tens of percent the past few years.
Is that 200k before tax or take-home pay?
Rachel, nice video, always informative.
Please stop trying to hard.
I brought $69 net income in 2022. Saved $30k cash and lived on $39k. No debt except the house which I will be paying off in eight years.
Also cost of housing is nightmare. The 30% income rule just doesn't apply anymore. It's closer to 50% to sometimes 70%.
I made 100,000 last year and have over 900,000 liquid cash in the bank. House paid for on 5 acres with no car loans because I pay cash for only used cars. Bills I pay are water, gas, cell phone, car and house insurance. I woke up in my 30s now at 48 I can rest at ease me and my wife. We are still young with no debt. I tell family and friends why buy all this stuff and work all day just to live flamboyant and do not own any assets at all and work 40 to 60 hours killing yourselves. Be smart with your money and invest it right and let it work for you instead of u working for it.
I have a good friend that makes over 200k a year and he is very very stressed with the income. He always tell me you makes 130k a year and have no stress. I had to be really blunt with him, its all about discipine. I dont buy stuff just cause I can. To add i pay everything off and I ratther rent instead of buying a home. Hopfuly he sees the tree though the forrest now.
I'm 32, single, make 65k a year before taxes. All my bills total to around $1500 a month, and I put about 2k a month in savings. Also, Currently have a net worth of around 235k. Is that decent for someone my age? I have always felt like I am behind the curve.
The way I look at is that I need to live a life style where I can save at least 50% of my take home pay or greater. No matter how much money I make. I figure this should be the controlling factor to my life style. Currently, live on 35% of my take home pay and that's still too high. But its hard to live any cheaper than I'm living. I live comfortable.
Can you put a definition on "Paycheck to Paycheck"?
My wife and I make $75k a year and the only debt we have is our $160k house. I'd love to make $200k per year. We save money every two weeks when we get paid. Unfortunately everytime we turn around something brakes or you have to take the dog to the vet so the emergency fund gets used and abused. I say to my wife I'd love to have a good solid year without an emergency. Last time we took the dogs to the vet $275 then the vet said I need to remove the tumor that's going to be $500. Then I find out my step son is getting married in 2024. We have $5k saved for his wedding but I need to save another $3k for travel expenses. We have $1500 saved for that. I was trying to focus on getting the wedding expensive of $3k saved up,but now I'm having to split the money I save every two weeks with the wedding travel expenses and emergency fund.
Making $75M a year and what is the mortgage? If mortgage is $1K a month, add tax, insurances, utilities and food, there is not much left. Not dissing you guys, but $75K a years from 2 income is simply too little.
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Get rid of the dogs lol too expensive 🤣
The universe is telling you that you can't afford to have dogs.
Yep, there’s always something to pay for when you think things are moving in the right direction!
I make 101, yeah, it's pretty crazy how fast it goes if you're not careful
In 9 years we've gone from having $300/month to $2,300/month for medical insurance. That'll take a high chunk of any paycheck.
3 kids added to the same plan, one special needs - this is the only plan comprehensive enough to cover his costs which will be ongoing.
I've had healthy pregnancies with high risk births (expensive ones).
Luckily, because people donate blood, we survived. Thank God!
PS I lost employers' plan when I stopped work for kids. Started/-ing a biz serving others with a special skill I developed for that employer. He was the first client and remains a favorite.
To say we are stretched tjin when groceries went from $200/month to $800/ month in that time frame is insane. Because you',are denying certain realities in today's world. You'd probably say I'm in denial about traitoonal math in any world.
It's not that people don't get that income has to max over outgo or they won't make it.
It's that at certain points yoh've had so many actual emergencies that cost exponentially higher each year...
That you find yourself choosing to pay rent or medical insurance one month. Groceries or rent the next.
All too often I hear the phrase, "I can afford it." or "They can afford it." Many people use the balance in their chequing account to determine if they have money to spend on something else. And many people have their paycheck deposited to their chequing account. See the LINK ?