Yea selling lies and gaslighting us like most legacy media sources are is better. He could just say go watch any news channel or listen to Joey because they all day the exact same nonsense. Record homelessness, record inflation, wage stagnation, wealth disparity, broken job market and hiring process, mass layoffs Everything is better thsn ever though...lol....and all his sponsors are finance based WHAT A SURPRISE. 100% c0rp narrative propaganda, that's why he will erase this message and all the comments here are "omg ur a God I love u"
He is intellectually dishonest tho. 1. Yeah, you make 2x more money than your parents. Congrats. Everything else is 5x more expensive. 2. Oh, wage growth since Feb 2023 are *a tiny bit* higher than inflation? Amazing. What about 2020-Feb 2023? Are the percentage growths even comparable? NO. I make 2x more money than I made 2y ago, yet I have to cut back on stuff. & on & on. Always tells you to cut back on your stuff, not to grow your income massively.
He is talking about averages, yes we make more than our parents on average but taking income inequality into account, most jobs have a reduced salary adjusted for inflation from 40 years ago, and our parents had 85% more purchasing power from each dollar they spent. I don’t blame Gen Z at all. The worst thing about it is they put that money in the hands of corporations and are rewarding the same institutions that caused these problems in the first place.
“Things can be good and bad at the same time” actually hit me really hard and is a great lesson in nuance. Real life is great with nuance, but internet sucks at it. Loved this
I’m a millennial. What helps me snap out of the doom and gloom is to remember that my immigrant grandparents survived actual poverty and a real depression (not just recession) and world wars. Several of their siblings didn’t survive childhood. Yes, we might not be the luckiest generation, but we certainly aren’t the unluckiest.
i was in a depression in my country. i remember what money not buying anything was like. now we all have more than enough and people are telling me it's worse?? i think it's an issue of collective memory (and manipulation of the public opinion).
Yes my mom always said that unhappiness will expand to fill any void you give it. She’s also an immigrant and has stories of not having enough to eat and boiling fish bones until they disintegrated and drinking the soup. And also when she moved here she was distraught over my brother not getting into a good college lmao and she just reminds herself and us of both of those things. I know sometimes it’s not helpful to hear but for me it always helps me reset whatever situation as I can handle it and it’ll be ok! I find it encouraging.
Another Gen Z here. I refuse to play the fear game. This whole “I have no say over my life” is not for me. Ramit’s compassionate firm but fair financial tips have me investing 100 a month at 25 on a low wage and no credit card debt. I’ll stick to what I’m doing.
Yes! It is hard to do sometimes, but keep it up and it will pay off in a few decades. It seems like it is a long way away, but believe me, it will be here before you know it. I am knocking on the door of retirement in a few years and I am glad that I did something similar and it has paid off. I am trying to convince my niece to do the same. Good luck to you!
Keep doing what you are doing. Investing and no debt is the way to go. I’m 51 with no debt (no mortgage), retirement $ good, 2 kids graduating from college in May ( debt free too) and one more daughter to put through school ( her college is funded as well). I plan to retire when she graduates in 2027 and do what I want to do. I bake as a side hustle now and will continue to do that. My hubby and I started just like how you are doing and it has paid off tremendously. I wish we had a Ramit back in our younger days. I will be gifting my kids his book for graduation too. Be blessed and pray everything works in your favor. Don’t forget to enjoy life and have some fun along the way too😊
It’s not just Gen Z who have this spend send spend, also their parents’ generation behave that way. My friends each added up our salaries over our entire working life and tried figure out where it all got spent. Shocking! - Every single person had earned over $1m, but most had no idea where it went, have no homeownership to show for it, no real pension savings or investments. The attitude of “money is for spending not saving” is way larger than “Gen Z”
The Psychology of Money has some insight on this. What I remember is our modern financial practices are relatively unprecedented, historically speaking. For example, the idea of retirement didn’t exist until the 20th century; before then most people worked until they died. 401ks, credit cards, IRAs are all 20th century inventions. IRAs didn’t even exist until the late ‘90s!!! This floored me
@@AngelaMastrodonatocheapo companies said "no more pensions from us, go save it yourself! The govt helped them by inventing 401k. That was step 1 in the fleecing of Anerica keeping the ruling class ruling.
@@davidcarp5935 something else I remembered from the Psychology of Money is that not as many people had pensions as commonly believed. Sure some lucky people had them, but the idea that it was common place is a myth. Retirement is a relatively new concept. Even today, so many people don’t have jobs with even 401ks. And our schools fail to teach kids the difference between a 401k and an IRA. The whole idea of retirement is almost stressful to me. I would almost rather work in an occupation that evolves with me as I age, with fewer hours but make enough, then squirrel everything away for 40’years so I can completely stop working and be free by the time I’m elderly. To me it’s demotivating.
Thank you Ramit for saying this! I’m 24 and came from a lower income family. I’ve also been chronically ill since I was 15, so my life has taken a considerably different path than my peers. However, I made a decision when I was a teenager that I would NOT succumb to the doomsday attitude and would do everything in my power to break the generational cycles of an impoverished mindset. My motto is “where there’s a will, there’s a way” and that’s what I live by. We are blessed to live in the age of the internet where one of the most powerful things, knowledge, is literally in our pockets. On the other hand, it’s easier than ever to fall into the “doom” mentality because of it. But I make a decision daily to set myself up for peace and prosperity, so I can share it with my posterity and give others the gift of a “rich life”. ❤
Your demographic has entirely different financial needs if you live in the US. Someone needs to specialize in financial planning for the diabetic, RA, crohn’s, MS, etc patient. Those medications and MD visits can get so expensive and our insurance companies are paying less and less for them.
My millennial ass was previously in the camp of "gloom and doom," especially during the financial crisis of 2008. But after stumbling onto Ramit's Netflix series, podcasts, book and youtube vids, I got a much better education on money than I received from anyone else. I have paid off two-thirds of my debt, opened a brokerage account and invested in it monthly, and am doing a much better job managing my money than I have ever done. My biggest mistake was not finding this information before buying a condo. Knowing what I know now, I will be getting rid of it soon and using these high ass mortgage payments for things I LOVE.
Why would you sell your condo ? It's a good long term housing/investmet choice. Owning gives a lot more stability compared to renting. I would think twice before chosing to rent. You will be at the mercy of landlords for your whole life. If you wouldn't want to rent and drive someone elses car your whole life. Why do it for housing ? Some data on home owners vs renters from 2022: Homeowners have a much higher net worth than renters do -- the median for a homeowner in 2022 was $396,200, versus just $10,400 for renters. You can still get ahead as a renter and build some net worth. But statistically you would be the exception instead of the rule.
@@Bertuzz84 I have rented before and have no problem renting again. I live a lifestyle in which I'm constantly on the move, and homeownership is not the lifestyle I want. I have found other ways to increase my net worth, but homeownership is not it for ME. THAT'S why I'm selling. I am doing what's right for ME, regardless of the BS we've been sold on homeownership. And Frankly, with the high mortgage I am paying along with the high property taxes, I'd rather invest that money into something else. But thanks for your advice. I am choosing to do what I think is right for the lifestyle I live.
@@TheRailwayDrone Great, it seems like you have thought this through very well and came to the conclusion that renting is the best option for you. The best of luck to you. I'm a bit passionate about homeownership myself, because my mortgage is a lot lower compared to what i would pay in rent. But everyones situation is different.
@@Bertuzz84 I understand. I felt that way for a time about home ownership until I finally purchased my first home. It's not really for me given how frequently I like to move around, in addition to my plan to move overseas.
Thanks, Ramit! I didn’t know I needed to hear this until now. I think looking at the housing market got me into a funk. Counting my blessings now: good paying job, my health and the health of my loved ones, paying off debt, and my low rent apartment. Hope anyone who reads this can also find hope. ❤
I don’t know about the rest of America, but in NYC the real estate market crash between 1991-1997. I was relatively young, and was able to buy my very own 1-bedroom apartment in cash. Between the maintenance and utilities, I was paying approximately $550-600 a month. Rent for a studio was $650 or so at that time. The moral is, save your money and grab the opportunity when it comes your way. Also, have emergency funds to buffer any layoffs, so you won’t be homeless.
Many of my friends were able to buy houses in 2010-2011, when housing costs bottomed out after the bust. They had spent their 20s and early 30s building up their savings and credit scores, even though the housing bubble had priced them out of the market for a decade. At some point housing construction will rise again, and home prices will moderate. People who have saved up will be able to buy when this happens. The housing market is constantly changing. Another option is to live in flyover country.
Gen z here 👋🏾 Ramit is the only person with a video with this subject I would eagerly click on, because I know he's going to spare us the bullshit and be understanding. The hopelessness people are feeling is so severe. Even gen alpha is being effected. A lot of people are so deep in the doom vortex and it's been building up for years and years, especially post pandemic. I feel many young people spend as a manifestation of self harm, and with an almost suicidal mindset. I talk to a lot of people who believe the world is only going to get worse and worse. I'm optimistic by nature, but for a long time I had a lot of trouble even beginning to imagine myself in the future, and just trying to get through every day.
@@PerceniI think that’s the other issue as well. We live in a glorified instant gratification society now, it’s hard not to be trapped in that mindset. I think more older people need to be honest and open about their stories too as there’s this thing pushed that everyone had their life together at 20, but that’s not true at all.
It’s hard to not feed into doomerism. As a millennial, I feel for the younger generations I really do. I think the best thing many of you can do is delete social for a bit. That was what helped me, it’s hard as I loved sharing my art and my online shop, but it’s not healthy for any of us and it creates cognitive biases because we interact with doom and gloom the most so we see it more. The internet and social media aren’t fun anymore. RUclips is a bit different as I use it to learn or relax, but everything is too fast paced and it’s causing such immense pressure on kids to be perfect. Y’all need to fail, have fun and enjoy life for a bit. Life doesn’t need to always be online.
“We need nuance to live a rich life.” In a world fraught with confirmation bias being reinforced by buzz words/phrases and trends from social media, this thought is gold.
Dawgg you're the only good financial youtuber because you focus on a healthy, fun lifestyle AND the finances. Your book is the same way and is great, I recommend it to everyone because it's the only book that asks you "what is it you actually want?".
Thank you so much for this! It's actually terrifying that so many people are deciding to just lay down and suffer. Especially if you're younger, you have the most valuable asset, time! If you give up, what are you going to do for the rest of your life? Do nothing to try to make your situation better, suffer and complain the whole time? It's a self fulfilling prophecy. On the topic of the addiction to doom, I think people mistake being "well informed" with being tapped in to every horrible thing happening in every corner of the world at every minute they're awake. We were never built to have access to so much information at any given time.
I think the biggest issue is that it's a lot more obvious and in the open just HOW unfair the situation is now because of the internet and instantly available information. This is not the worst time in American history to be middle class, but it feels like it sometimes because there was a LOT more effective propaganda in the past. The wake up call, for me, wasn't realizing "things are better than they seem" or that "I can take control of my future". It was realizing "things have ALWAYS been this bad, I've just been given enough information to understand how bad it is". Once I realized that, it was a lot easier to see how we make progress by continuing to push for things to get better. It doesn't go as fast as ANY of us want, but it DOES go generally in the right direction.
I'm living in Russia and things kinda sucks more. Average salary is about 30000-40000 rubles(it is less than 500$/month). But the most cheap 1-room apartment costs at least 3m rubles (37000$) I just can't imagine how i can afford my own place. Renting a room costs 200$/month at least, plus bills, food, internet... I'm working to live, not to have fun :(
That thumbnail went crazy 🔥very important insights, its something ive noticed so much with my friends and makes it kind of hard to have more optimistic conversations with them, youve inspire me alot with my channel to spread more positive and accurate education while also empathizing and acknowledging the struggles that exist, things can be good and bad at the same time
I started working 2 years ago, and thankfully I have a dad that paid for my college and I have a job that pays me almost $200k right out of college. But I have friends that do not have this fortune, and I empathize with their feeling honestly. Lots of college debt because university keeps getting more and more expensive than it's ever been, stagnant wages, very expensive living amenities... I'm in a very fortunate minority for my age group, but when your choice is either to live like a rat to save a decent amount of money, or live paycheck to paycheck to have a NORMAL life, I honestly don't blame people for wanting to have a normal life. Cost of living has gotten out of control and wages have not kept up with it, we need to make the economy so that the average person can have a normal life with a good standard of living, that in my opinion is the bare minimum
I’m 25 and live with my family and I have to admit, even with me making above average in my state that it is possible to live the American dream Gen Z, you just have to be wiser than the previous generations, our purchasing power has been destroyed, my grandfather paid $30K for his house and made $32K that year (1976) my dad paid $80K for a 3 bedroom house with a basement (1995) and made $38,000 that year. Now I make $60K and the average house in my city cost $300K. We are not lazy we just don’t have the purchasing power the older generations had. The government endlessly prints money, which also artificially inflates assets like housing. Lastly, 60% of Americans live check to (about 200 million people) I agree that it’s possible to make it and buy a house but Gen Z will literally have to live at home and save for 5 - 10 years and hope inflation stays low if they want a chance at buying a home. (Those who’s parents didn’t buy them a house, about one third of Gen Z will have family gifting them money for a house)
I’m an old millennial with 3 alpha kids. I am not pushing college and if they need college I would encourage state or community. My dream is to buy a triple decker in Boston so each girl had their own floor to live and if they don’t want to live there they can rent it. However, I am fully prepared to have my girls live with me well into adult hood. The hardest thing for kids today is being born into toxic or unsupportive families. Kids today won’t survive if they don’t have support. Oh and my boomer parents saved nothing and live a wonderful life off their pensions. I’m so tired of them.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
Accurate asset allocation is crucial with an Experts guidance especially in times like these. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
My CFA *Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Our 3 kids are Gen Z and we teach them to save first, spend second. 2 of our kids listen and live that way… the other well it’s spend spend spend to keep up with peers. Peer influence is extremely hard, especially when kids are buying coach, gucci, etc. Thus it’s important to save to be able to just survive as housing, insurance and food will continue to rise like crazy.
Sounds like the 3rd would enjoy Ramit’s content when they’re ready to come around to it. As a Gen Z myself, there’s a high possibility that they’re surrounded by “saving is outdated” and/or “I’ll make the money back” narratives. Ramit not being so nickel and dimey about finance will probably really help your child over time ☺️
@@rayofsunshan you could be right around the narratives. As a Gen Xer we didn’t have narratives, it was just go buy whatever you want with zero thought of repercussions.
Gen Z here. Things are very tough I'll have to admit. But I have two options - sitting and complaining or getting up and doing something. Sitting and complaining won't change anything and will only hold me back. So yes I'll have to work harder. My generation will have it harder than the boomers, but that's the reality to live with. I think the best way to go right now is to rack up on certifications if you're going for a certain field and to also learn how to invest. It may not be everything but definitely helps and has helped me so far.
In the past my parents and my grandma didnt have to invest to have a house. Im from South americas welthiest country and my parents got their house at their 20s. They finished paying it off now becouse the government trolled everyone with the bank credits for housing (with an interest that always will go higher). But i dont even have that chance, i cant even find a job not in my country, tried abroad and nothing. My two sisters live abroad and can barely afford her rent and they have to save up for their own house wich they may get by the time they are 70. In the mean time ofcourse they enjoy life and go on holidays or buy small things. But my parents at our age could do all and have it all without having to invest and put their capital at risk on trading.
@@andy381Sw I totally understand and agree with you. It is unfortunate that we have to make risky investments to make anything. Over the past few months I invested a lot of my savings (I'm in college so I don't have more than a few thousand) in crypto. It has given me about a 30% return so far and there is still potential. But at the end of the day, crypto is a risky place to put your money in. It's just what we have to deal with and hope that things get better.
Good for you. I know things are hard, but honestly? Things have been hard since ever. My grandparents lived through two world wars and a depression-my grandparents were from the UK and bombs literally fell from the sky for five years. The world pre-ww2 saw adult children living with their parents AND grandparents. Weddings were simple-couples wore their best clothes and got married in the living room. People didn’t take exotic vacations. We all need to readjust our expectations.
Lol wow the gasliggting. 62.9% labor participation rate prove his point? People with master degrees and 15 years experience in field working minimum wage jobs prove his point? Car lots having zero sales and no one buying cars prove his point? Mass layoffs in every sector prove his point? Wages being "up" means absolutely nothing with runaway inflation. Wages are going up for the top 1% and ceos like always, but have been stagnant for workers for a long time and absolutely HAVE NOT KEPT UP WITH INFLATION, his biggest lie. I guess you just like being gaslit by scammers sponsored by financial ads telling you its so ez to get rich now lol.... Toxic positivity, and false hope. Very soul crushing
In the past my parents and my grandma didnt have to invest to have a house. Im from South americas welthiest country and my parents got their house at their 20s. They finished paying it off now becouse the government trolled everyone with the bank credits for housing (with an interest that always will go higher). But i dont even have that chance, i cant even find a job not in my country, tried abroad and nothing. My two sisters live abroad and can barely afford her rent and they have to save up for their own house wich they may get by the time they are 70. In the mean time ofcourse they enjoy life and go on holidays or buy small things. But my parents at our age could do all and have it all without having to invest and put their capital at risk on trading.
Decelerating inflation doesn't equal prices coming down, it simply means inflation is growing slower. You glossed over that rapid acceleration from 2020-2022, so if you were to look over the last 4 years, costs have outpaced wages significantly. If you were to extend that over the last 20 years, it's a lot worse. Which means most Americans don't have enough disposable income to make investments in the stock market and hence feel like this is the worst economy ever as you framed it. Instead of looking at eggs and lumber, look at housing and education costs, that is where the bulk of expenses go.
Also though, my croceries went up yet again by literally 10% this month. As a low wage earner myself, I can tell you that my wage certainly didn't increase... This is not as "great" of an economy as he's touting.
Inflation mainly hurts cash savings and people who stay at the same job for a million years. If you change jobs every 2-5 years companies have to be competitive with new hires. So your wages will sort of keep up with inflation. Cash you have saved gets hurt the most it's constantly losing value. If you invest in your 401k your savings will grow faster than inflation. I'm not saying it's easy. I changed careers at 30 and lived off of part time jobs and student loans to get it done. Now I'm able to save money in my 401k and it has definitely outpaced inflation. Last time I looked my 401k is up around 24% over three years. We can either do whatever it takes to push through the bullshit or we can do nothing and cry.
@@Maidenless007when is the last time you switched jobs? You should be switching jobs every few years otherwise you will absolutely fall behind. Also look for ways to no longer be a low wage earner. I'm not being a dick I was one. Then I busted my ass in community college at 30 living on student loans to become a mechanic. It's not even that great of a career earnings wise, but it's enough for me to put 8% of my pay in a 401k that is growing faster than inflation and that gives me hope.
There's always noise, and our job is to simply ignore it and stay focused on our financial goals. It's easier said than done, but it's definitely achievable.
I'm Gen Z (20f) working full time and going to college full time. I make a little under 40k a year. I thought everything was hopeless this year when I had to cancel my vacation plans due to not having enough money. Social media also is depressing 24/7. My eyes were opened when I took a Consumer Math class and watched Clearvalue Tax's video on 4 things to do when you get paid. Many people around me are under the impression that just cutting back on everything and saving money with low or no interest is the way to go but it is not.
A useful comparison is my brother and I. Both early 40's. He has earnt more than me most of his career. He also moaned for 15yrs about buying a house being impossible and mocking me for a more financially respinsible lifestyle. I am now almost mortgage free on two houses. He has a huge mortgage on one. This is just to say building some wealth could be as easy as taking your head out of the sand and making a plan
Hey man imma keep it real with you. My parents and I lived a frugal life and it was honestly great. We had 2 vacations a year since I was a kid. We only got what we need and never on luxuries. We are pretty humble people. Frugal does not mean cheap. Frugal means you prioritize what you need and if you want treat yourself but with moderation. Plus we gave back to those in our community who were in need. Parents retired early (Both at 50) and are just enjoying life for what it is and they accumulated great wealth living like this and they are enjoying it together. Frugal lifestyle is good for humble people who are not attached to materialistic things and we still had nice clothes in the process. We just enjoy a low profile and not like to be seen. Cheap is a bad lifestyle. We never did that at all. I think the main thing is frugal people prefer comfortability over anything else. As long as we are comfortable we are happy. Frugal and cheap is not the same. You are describing cheap.
bought a house in 2014 that cost 2X my gross annual income. with 0 down and 3.8 APR, it took me 6 years to paid it off. that same house now worth 2X its 2014 value. although my salary is more than 2X of what it was in 2014, I don’t think I can paid off the mortgage of similar house in 6 years if i buy it tomorrow. Everything is much more expensive now. I’m very concern for my kids’ future!
There’s no way on planet earth that you could repeat what you did with a house similar in value today as that one. At least 15 to 20 years depending on income
Having a difficult time squaring away how home price is 6X annual income (up from 2.5X 40 years ago) and the things can be good and bad at the same time, then saying wages are up.... The fact that wages are going up at a slower pace than housing means there's less discretionary funds for guilt free spending... real or not probably depends on your socio economic class. With that said, all 3 tips are great! Thanks!
Mortgage rates in the 80s were insane. The amount of monthly take home pay needed to make the monthly mortgage payment is actually comparable even though the price of the house has grown more than twice the rate. The Housing Affordability Index chart he showed at the beginning demonstrated that exactly. Housing has been very affordable in the last 15-20 years simply due to the very low interest rates. If that is all you have to compare against, of course younger people are going to complain. As an example, he states a 1984 median house was about $81K, or about $250K in today's dollars. Put $250K into a mortgage calculator at 13.5% interest and a house at $450K @ 7%. You might be surprised how close the number are.
In 1985 my parents had just ended the farming partnership with my uncle. They were struggling with the debt from the flood of 1981 and my grandparents came over every Sunday and berated them for being broke. I was 5 AND THE 80S SUCKED!!!!
Yes wages have been going up for low income earners but so have healthcare costs, education expenses, housing, and effective tax rates. Here's an idea for Ramit's next Netflix special: living in a US city working a low-wage job for a year.
The guy in the stretched out Cisco T-shirt from 2004 has rich life that involves spending extravagantly on technology and clothing is where the cut happens.
Nothing wrong with it at all .. I come same sort of background as him.. and I love fashion but I change that first when I decide to have rich life.. to say I do have clothes which last longer n paid lot of money but worth every cent invested..
Thank you for showing the two sides of the coin and not focusing on the bad news and bad data only. I believe that when we fill our minds with only positive and inspirational thoughts, we end up attracting all the good in our lives. Thank you Ramit!!
We’re not giving up our finances it’s the way how modern society is now today towards Gen Z. It’s the price that we have to pay. Can you imagine that if Gen Z live back in the 80s 90s and early 2000 it would’ve been a lot easier for many of us. Nowadays, it’s so complicated because a lot of jobs are not even paying enough to afford rent and bills that doesn’t cover majority of it. That’s why a lot of these new companies do four payment plans to cover our expenses we can’t pay in full. We have generations before us blaming us because we’re lazy and not mentally strong enough to pull through. Generation Z nowadays it’s all about survival people who make these type of videos, get me frustrated because they lived in a different time where the economy was fine for them they didn’t go through a pandemic. That impact changed everything nobody of Gen Z can afford homes or apartments it’s unrealistic that the number is so high & we have to work harder just to make more money.
Sadly same here in Canada , average home price in Canada is $720k. The average Canadian it will take 12 years to save for a home down payment. Other markets in Canada it can be as much as 25-40 years of saving. I feel for young people. Gone are the days of get a degree, save some money and in a few years you can own a house. 😢
@@dishboy14 But do you guys know that this was always luxury? Only Americans seem to think that owning a house is a must. Most of the world is living in apartments and always has. The golden times have become normal for you folks...
You are right it was unaffordable in the 80s. We made it through. 15% interest was scary. As a boomer that is when my husband and i bought our first house. He was a utility worker and I was a stay at home wife with 2 kids. We had another kid after that. That is the period of time us boomers are referring to. Inflation and unemployment were also high. Every generation has obstacles. My grandson and his stay at home wife (both 26) just moved into the home they bought with the two children. He is a barber. We boomer know the economy sucks right now. You should actually talk to some average retired boomers.
Me and my Roomates (all around 26 years old) are all exactly what you’re talking about, we immediately send half our paychecks to investments which are nearing 6 figures, all have built up emergency funds of around 20k, and can still very much enjoy our lives. Yeah it sucks our generation is getting screwed but we’ve all accepted it and done the best we can to build our lives up and because of it we feel so far ahead. 10/10 would recommend only worrying about what you can control
As long as you guys aren’t putting it into a investment pool where you share your investments because I’ve heard stories of people and investment pools once they get a lot of money than one friend text all of the money and runs It’s like the same with a lottery pool If you win a lottery pool there’s a good chance one person will take all the money and run I wish I had friends that I could work together and invest, but I have to do all this on my own because I don’t have friends
Oh man, what do you have against Chili’s?😂 I try to encourage my teens to not fall into the vortex of doom. My son is 19 with $16,000 in a Roth IRA and a net worth of $45,000. Can’t wait for my daughter to get a job so we can get her started too. Thanks, Ramit!
Yeah I think this is just because they’re young. 😅 I thought exactly the same in my 20’s. It wasn’t until about age 28-30 that I started to take my life seriously. It’s just being human. (Edit: and of course there’s exceptions to this! There are young people who take their finances seriously. I’m just painting in broad brushstrokes. This of course does not represent every person in a certain age demographic)
You are right, but I think the problem is there is a crisis of lack of meaning.... People feel only money can fill that void, but that will never be enough money to replace meaning.
Thanks Ramit I have been following this Financial Breakdown Especially automatic weekly payment to my emergency fund and saving to my wedding and also I am investing(since bit longer) but one thing I am learning is flexing that spending muscle , I no longer crib about those lunches, coffee or dinners and I pay my credit card in full automatically. I feel much more relieved and lively spending on what makes me happy and at same time saving and investing for future. Thanks a ton
I’m a young Millenial but too old to be a Gen Z and what really helped me is getting off social media, the less you see people faking their lives, the less you will compare yourself to others. I use to watch makeup and clothes hauls in the mid 2010s and racked up a lot of debt but since I made a social media detox, I’m on my way to be debt free 🎉
I work a full-time job in Ohio we bring home about $700 a week.. I have a co-worker that's 32 years old live with his mom he just bought a car for $65,000 took out $30,000 of his 401k and said he's living for today😂😮😅
A younger guy I was working on the same shift told me, you only live once, that was his reasoning to go ahead spend the money he was making now, instead of saving. He went ahead and bought a new vehicle instead of buying a cheaper used one. He also believed in buying high end stuff, instead of the bargin stuff.
I am always lost when ppl say that the economy is awful, that people are poorer than ever before. Like really. My grandma and her parent were suffering without food and they had 1 pair of winter shoes for a family of 4 people
What ? Job security no longer exists. You can be fired at any time for any reason, for no reason at all...and you most assuredly will be. The Job Quality Index has collapsed. Our elected leaders have sold us out to foreign interests and self-gain, our borders no longer exist, our savings were inflated away, real wages haven't increased in years, homes are unaffordable, family unit is broken, decent jobs are shipped overseas, low skill workers are imported from other countries to suppress wages, we are FUNDING our own invasion, our government agencies (IRS, Veteran Affairs, etc.. ) are ARMING themselves against the American people, and our Constitutionally recognized rights are violated daily. I give the USA 10 years, tops. when enough people are really struggling there will be chaos and it won't matter if you are ok, it hurts everyone America is done hyper inflation cost of living low wages hate for middle class for no reason so young people wanna live great now the future is bad for the majority of people not the wealthy
Commodities’ price swings are still pretty important to keep an eye on as the dollar continues to weaken IMO. They’re good indicator of what’s to come for certain consumer products in case you need to find an alternative or plan to cut something out completely (eg cocoa prices are mooning right now, so chocolate is probably going to be temporarily priced like a luxury item in the near future). Ultimately you are right though, this is a $5 problem that doesn’t warrant much attention vs the $50k problems most could go tackle in their own lives.
You Americans make me jealouse with houses only costing 6X the annual income. It's 10 times your annual income in the Netherlands. And in some eastern European countries it's 17 times your income. A house costing 6X your income is still incredibly affordable compared to 95% of the world.
Americans don’t know how good they have it. As an example, people love to rave about Canada but not only is housing way more expensive but wages are also very depressed there compared to the US.
To be crystal clear…housing is not affordable in any part of the US where anyone would actually want to live. Wages here are also not high enough for the vast majority of people who don’t already own a home to ever buy a home. The US is a dumpster fire economy, it’s hard to imagine anyone in Europe thinking we have it better in any way.
@@elenakalliste I'm aware that America has problem just like pretty much every other country. The stats that i've read say that the American economy is outperforming most of Europe though. A few places in America have housing affordability on par with some of Europe. But a large part of America has housing affordability better than you will find anwhere in Europe.
I once heard a quote I love to this day "society wants you to be mediocre" And imo it applies perfectly to the current world, with so man Gen Zs just quit trying to be in the workforce, imo the more that leave the less competitive it becomes to the ones that stay. "If you shot to the moon, you might hit the stars", it might sound like a common cliche, but just don't give up.
Born in 1996. I’m not giving up just waiting for the right time. Also we aren’t the only generation getting hit. My grandparents are retired on a fixed income. The older gen is struggling rn and prices are just increasing year after year.
I am 33 about to get a home.. first time I show my mom .. she said well u know you will need to cut back on all ur wants. 😢 that shit hit to fast 😢 & wished to have listen to her 10 years ago
Ramit, Thank you for a balanced viewpoint. You are correct, living in a a high-cost area it is difficult to keep things under 60%. But I am hitting all the other percentages recommended. Please keep up the great podcast!
Honestly people came to the realization that slaving away your whole life just to "enjoy" the WORST 10-20 years of your life. You can't enjoy driving a porche when you can't see the road. Can't enjoy a vacation to Tahiti if you can't walk or are having problems breathing. There's a lot of life that you can't enjoy when your old that the younger version of you would have greatly enjoyed that comes with stories to tell.
Yes and unfortunately tomorrow is never a guarantee. So you don't want to put off everything for those "when I retire" days. I have known soo many older folks that worked all their life and lived extremely frugally and put off having fun or nice things in their younger years and saved every penny so that they can "enjoy retirement" and they either pass away shortly after retiring or their physical health declines soo much that they can't do anything and then eventually they pass and never get to enjoy what they saved for.And then their children/relatives/the state(if there's no family to claim) come in and take all their life savings and get to reap the rewards their parents/relatives worked their whole life away for. It's very sad it's best to try to enjoy life whenever you can and don't put off your dreams forever because tomorrow is never guaranteed.
On paper making more than I ever have but the take home is roughly the same amount due to health insurance costs. My house is worth triple but my homeowners insurance and property tax doubled in the past two years. I was able to save more at a lower income threshold before. Who cares if you make more if the government just takes more in taxes? 401k is great but that doesn't really help me in the day to day 🤷 It is the lack of real progress that is depressing. I think that is why people feel frustrated economically.
Absolutely this! I'm making 50% more than I was 2 years ago, and I'm really happy about that. But I've since lost health insurance, seen massive increases in rent with trying to move to a smaller and cheaper place, and I'm not able to increase how much I'm saving. And with less than 5 years in the workforce, I don't have the leverage or experience to get better paying jobs. There's a massive disconnect between doing so much better on paper to the lived reality that life feels worse off.
If your home value tripled that means you have hundreds of thousands in equity and your mortgage is at 2% interest. Really seems like you’re in a great spot
Such a schizophrenic and disingenuous video. Only thing I have to say is, of course low wage jobs have largest pay increase RATE..when ur going from $12/hr to $15/hr of course it outpaces other jobs on paper. But ur not getting a house or be able to retire in that income class.
@@TonyCox1351 Equity only matters if you sell or cash out/refi. Otherwise it just means taxes and insurance skyrocket. On paper it's great but in practice it is not. And I don't have a 2% rate. It is a good low rate but the total payment is what matters. Tax and insurance will eclipse the mortgage payment in another year or so. My area was a lower COL before Covid but now outside money is moving in and inflating prices.
Wow. I was like « alright another financial guru scammer 🤦♂️ » But then you were not. We need more positive people like you in this world. Keep teaching them healthy financial habits! Keep the good work!
Would you then recommend going back to the same policies our parents grew up under, including higher taxes on the rich, more pensions, and more public services?
no for real!!! we never get a chance to actually save our money and not worry. most of us are stressed. i’m a very frugal person and sometimes i just want to live my life a little but i can’t because i have bills, etc to pay. i budget everything. i don’t care about being optimistic and smarter with my money. i’ve heard enough of that shit. the economy just NEEDS to change. things need to be more affordable. i’ve had enough
Here is some food for thougut....... Inflation is not the only problem. It is corporate greed over empathy for the human condition. It is being told become a minimalist, live frugal and simplicity while the 1 and 10 percent are thriving off the labor and efforts put forth by the poor , all while doing the opposite and living their best life.
If I can add some nuance here: Companies will, by definition, try to maximize profit. It's like that old story of the scorpion. What matters is not "greed" but regulation. How far will we let companies go? How far will we let wealth inequality go? To many -- including me -- the answer is we've let it go too far.
Hi Ramit, I want to thank you for bringing forth the Vortex of Doom. This concept was never explained to me growing up and I had to educate myself (in my late 30s) through self observation and financial literature. There is definitely a psychological aspect to positive cashflow and I would like to encourage anyone reading this to grab a book if a particular topic is creating some aversion but deep down you know you need to master it. Knowledge is being shared so get fired up and educate yourself!
Gen Zers have no clue…. I graduated college in 09 and had to take a job making 30k. Had to share a house with 4 other guys before the place was foreclosed on forcing back in my parents house. A lot of these kids coming out of college are making 80-90k.
I also graduated in 2009 and could not find ANY job except part time retail, minimum wage, no benefits. The idea of being able to graduate and have a 60-70k job waiting for you blows my mind!
My kids get sucked in by ads telling them they need X,Y& Z to make their life better.....i tell them they have fallen prey to marketing. I encourage them to put money towards long term savings/investments (Junior ISA in UK).with the small amount of pocket money they get. Need to develop these habits at young age.
1:05 I'm telling you life is way better back then. Neighborhoods we're actually communities. After 20 plus years of not being in the same room for my parents when I went to visit them two years ago out in Arizona where they arresting and retiring at. And I was just flooded with nothing but great memories from growing up.
This is unbelievably awesome for my older high school students. So relevant, so timely, and so fun to watch with the right mixture of graphics, dynamic speaking, and fun. More like this for Gen Z would be fantastic! Thanks Ramit
I went to school for finance and it turned me into a black eyes nihilist. The problem is inflation compounds and prices rise exponentially while wages go up linearly over time. I would need to invest 6k a month starting now at 24 to have an average retirement at 65 in a monetary system that will fail in the next 10-15 years.
I’ve always been an advocate of investing since a teen. Now in my mid 20’s, after numerous trials and errors, I've boldly delved into the stock market, and it has paid off handsomely.
@LogosandLogic My colleagues had a good laugh at me when I told them I started my journey with $5k capital and how I accumulated over 5 figures within a span of 7 months. They never believed me until I pulled out my P&L. I know that learning the ins and outs of the market isn't for everyone, that's why personally, Jonas Herman oversees my investments.
Jonas Herman is the brain behind my success. I've gotten into a plethora of assets with $4k spread across stocks (options and futures) for the short term and Roth IRA, index funds, and ETFs, for the long term. Now I sit back and just reinvest at intervals while I handle my other businesses.
Im glad I was able to hear some positive thinking for once. I am a local government employee who currently isn't paying rent and has no mortgage (I am currently blessed with a program in the county I work that allows a rent free apartment in exchange for being an emergency point of contact on the property). I started the search for my first home a few months ago. I have always been careful with money and by my own self control and divine intervention, Ive been able to save a decent amount of money. I will say that I am still a bit dissapointed with how expensive things are because it just doesn't seem moral. Good, honest, hard working people should not have to slave away just to get by. Thank you for taking the time to again try and sway people towards a more positive perspective, as we are not living in the Great Depression or WWII as other commenters have said. However, I am having a hard time being optimistic for the future.
This is so true. People love talking negative about the economy but when you say positive things they think you’re crazy. The Psychology of Money book opened my eyes to this reality. Misery loves company, even in 2024. Love your videos bro!
In the UK the young are paying highest taxes sinse ww2 to pay for baby boomers tripple lock pensions. Yet they may never have a state pension themselves. Its going up to 68 and it keeps getting raised. Meanwhile the parties need the boomers vote so theyre punishing the young to pay for the old.
I support your message, but let me explain why these people feel that way. You see, people live in the gap between their spending and their income. When we (me and my wife) were able to save around 10% of our income we felt really bad, because our standard of living is already quite low. Then the circumstances changed and it became 60% because the income grew and the lifestyle stayed the same. So we were feeling pretty great about ourselves. We felt like we have a bright future. Then the opportunity dired out and now we are back to around 30% all with the same standard of living. I would say that the financial confidence and the sense that you can make it starts from 50% of savings if you are a high earner. Anything less feels like working to live this life now and only when it becomes over 50% you feel like you actually contribute towards something. With 10% savings rate we could only afford to save money for emergencies and big purchases. With 30% we can start investing with a little glimpse of hope. Basically I described 3 totally different mental states of the same high earner couple. I'd say this can only come from that gap that you see in your bank account and not from a RUclips video. It's all too personal.
Thanks for not selling fear like many others on RUclips do
Yea selling lies and gaslighting us like most legacy media sources are is better.
He could just say go watch any news channel or listen to Joey because they all day the exact same nonsense.
Record homelessness, record inflation, wage stagnation, wealth disparity, broken job market and hiring process, mass layoffs
Everything is better thsn ever though...lol....and all his sponsors are finance based WHAT A SURPRISE.
100% c0rp narrative propaganda, that's why he will erase this message and all the comments here are "omg ur a God I love u"
He is intellectually dishonest tho.
1. Yeah, you make 2x more money than your parents. Congrats. Everything else is 5x more expensive.
2. Oh, wage growth since Feb 2023 are *a tiny bit* higher than inflation? Amazing. What about 2020-Feb 2023? Are the percentage growths even comparable? NO. I make 2x more money than I made 2y ago, yet I have to cut back on stuff.
& on & on. Always tells you to cut back on your stuff, not to grow your income massively.
It’s really tiresome
@@leoym1803aka gaslighting
He is talking about averages, yes we make more than our parents on average but taking income inequality into account, most jobs have a reduced salary adjusted for inflation from 40 years ago, and our parents had 85% more purchasing power from each dollar they spent. I don’t blame Gen Z at all. The worst thing about it is they put that money in the hands of corporations and are rewarding the same institutions that caused these problems in the first place.
“Things can be good and bad at the same time” actually hit me really hard and is a great lesson in nuance. Real life is great with nuance, but internet sucks at it. Loved this
YES!!!
it's great for rich ppl
*Things are ALOT MORE BAD than good though. It was a nice cope though, gotta give him that.*
@Jay-jb2vr not really it's not that bad you're just whining
I’m a millennial. What helps me snap out of the doom and gloom is to remember that my immigrant grandparents survived actual poverty and a real depression (not just recession) and world wars. Several of their siblings didn’t survive childhood. Yes, we might not be the luckiest generation, but we certainly aren’t the unluckiest.
Yup….daughter of immigrants and they have it together for the most part. No excuses for me!
i was in a depression in my country. i remember what money not buying anything was like. now we all have more than enough and people are telling me it's worse?? i think it's an issue of collective memory (and manipulation of the public opinion).
Yes my mom always said that unhappiness will expand to fill any void you give it. She’s also an immigrant and has stories of not having enough to eat and boiling fish bones until they disintegrated and drinking the soup. And also when she moved here she was distraught over my brother not getting into a good college lmao and she just reminds herself and us of both of those things. I know sometimes it’s not helpful to hear but for me it always helps me reset whatever situation as I can handle it and it’ll be ok! I find it encouraging.
All immigration is part of the problem
Yeah, my Grandpa was born in 1916, grew up during the Depression and served in the Royal Canadian Air Force in WW2.
Another Gen Z here. I refuse to play the fear game. This whole “I have no say over my life” is not for me. Ramit’s compassionate firm but fair financial tips have me investing 100 a month at 25 on a low wage and no credit card debt. I’ll stick to what I’m doing.
Outstanding. I love hearing this!!
I did what you are doing when I was your age in the 90s. Now, I'm not stressing. Slow and steady wins the race. You're doing great
Yes! It is hard to do sometimes, but keep it up and it will pay off in a few decades. It seems like it is a long way away, but believe me, it will be here before you know it. I am knocking on the door of retirement in a few years and I am glad that I did something similar and it has paid off. I am trying to convince my niece to do the same. Good luck to you!
Keep doing what you are doing. Investing and no debt is the way to go. I’m 51 with no debt (no mortgage), retirement $ good, 2 kids graduating from college in May ( debt free too) and one more daughter to put through school ( her college is funded as well). I plan to retire when she graduates in 2027 and do what I want to do. I bake as a side hustle now and will continue to do that. My hubby and I started just like how you are doing and it has paid off tremendously. I wish we had a Ramit back in our younger days. I will be gifting my kids his book for graduation too. Be blessed and pray everything works in your favor. Don’t forget to enjoy life and have some fun along the way too😊
@@Nisa-gm5wglooooove this!!! Congratulations 🎉
It’s not just Gen Z who have this spend send spend, also their parents’ generation behave that way. My friends each added up our salaries over our entire working life and tried figure out where it all got spent. Shocking! - Every single person had earned over $1m, but most had no idea where it went, have no homeownership to show for it, no real pension savings or investments. The attitude of “money is for spending not saving” is way larger than “Gen Z”
The Psychology of Money has some insight on this. What I remember is our modern financial practices are relatively unprecedented, historically speaking. For example, the idea of retirement didn’t exist until the 20th century; before then most people worked until they died. 401ks, credit cards, IRAs are all 20th century inventions. IRAs didn’t even exist until the late ‘90s!!! This floored me
The boomers started that
@@AngelaMastrodonatocheapo companies said "no more pensions from us, go save it yourself! The govt helped them by inventing 401k. That was step 1 in the fleecing of Anerica keeping the ruling class ruling.
@@davidcarp5935 something else I remembered from the Psychology of Money is that not as many people had pensions as commonly believed. Sure some lucky people had them, but the idea that it was common place is a myth. Retirement is a relatively new concept. Even today, so many people don’t have jobs with even 401ks. And our schools fail to teach kids the difference between a 401k and an IRA. The whole idea of retirement is almost stressful to me. I would almost rather work in an occupation that evolves with me as I age, with fewer hours but make enough, then squirrel everything away for 40’years so I can completely stop working and be free by the time I’m elderly. To me it’s demotivating.
@josephl6727”need”
Thank you Ramit for saying this! I’m 24 and came from a lower income family. I’ve also been chronically ill since I was 15, so my life has taken a considerably different path than my peers. However, I made a decision when I was a teenager that I would NOT succumb to the doomsday attitude and would do everything in my power to break the generational cycles of an impoverished mindset. My motto is “where there’s a will, there’s a way” and that’s what I live by. We are blessed to live in the age of the internet where one of the most powerful things, knowledge, is literally in our pockets. On the other hand, it’s easier than ever to fall into the “doom” mentality because of it. But I make a decision daily to set myself up for peace and prosperity, so I can share it with my posterity and give others the gift of a “rich life”. ❤
You are awesome. I love your attitude. Thank you for sharing your perspective here! And I wish you positive health going forward!
Your demographic has entirely different financial needs if you live in the US. Someone needs to specialize in financial planning for the diabetic, RA, crohn’s, MS, etc patient. Those medications and MD visits can get so expensive and our insurance companies are paying less and less for them.
Good for you! I became disabled at 21 but had your attitude and I'm 50 now. I'm in good shape. You will be too with that attitude. Good for you
tell that to the peeps with passed away from self harm.
My millennial ass was previously in the camp of "gloom and doom," especially during the financial crisis of 2008. But after stumbling onto Ramit's Netflix series, podcasts, book and youtube vids, I got a much better education on money than I received from anyone else.
I have paid off two-thirds of my debt, opened a brokerage account and invested in it monthly, and am doing a much better job managing my money than I have ever done.
My biggest mistake was not finding this information before buying a condo. Knowing what I know now, I will be getting rid of it soon and using these high ass mortgage payments for things I LOVE.
Why would you sell your condo ? It's a good long term housing/investmet choice. Owning gives a lot more stability compared to renting. I would think twice before chosing to rent. You will be at the mercy of landlords for your whole life.
If you wouldn't want to rent and drive someone elses car your whole life. Why do it for housing ?
Some data on home owners vs renters from 2022: Homeowners have a much higher net worth than renters do -- the median for a homeowner in 2022 was $396,200, versus just $10,400 for renters.
You can still get ahead as a renter and build some net worth. But statistically you would be the exception instead of the rule.
@@Bertuzz84 I have rented before and have no problem renting again. I live a lifestyle in which I'm constantly on the move, and homeownership is not the lifestyle I want. I have found other ways to increase my net worth, but homeownership is not it for ME. THAT'S why I'm selling. I am doing what's right for ME, regardless of the BS we've been sold on homeownership. And Frankly, with the high mortgage I am paying along with the high property taxes, I'd rather invest that money into something else. But thanks for your advice. I am choosing to do what I think is right for the lifestyle I live.
@@TheRailwayDrone Great, it seems like you have thought this through very well and came to the conclusion that renting is the best option for you. The best of luck to you.
I'm a bit passionate about homeownership myself, because my mortgage is a lot lower compared to what i would pay in rent. But everyones situation is different.
@@Bertuzz84 I understand. I felt that way for a time about home ownership until I finally purchased my first home. It's not really for me given how frequently I like to move around, in addition to my plan to move overseas.
@Bertuzz84 @TheRailwayDrone
I love seeing this construct and judgment-free conversation 😍
Thanks, Ramit! I didn’t know I needed to hear this until now. I think looking at the housing market got me into a funk. Counting my blessings now: good paying job, my health and the health of my loved ones, paying off debt, and my low rent apartment. Hope anyone who reads this can also find hope. ❤
YES!!
I don’t know about the rest of America, but in NYC the real estate market crash between 1991-1997. I was relatively young, and was able to buy my very own 1-bedroom apartment in cash. Between the maintenance and utilities, I was paying approximately $550-600 a month. Rent for a studio was $650 or so at that time.
The moral is, save your money and grab the opportunity when it comes your way.
Also, have emergency funds to buffer any layoffs, so you won’t be homeless.
Many of my friends were able to buy houses in 2010-2011, when housing costs bottomed out after the bust. They had spent their 20s and early 30s building up their savings and credit scores, even though the housing bubble had priced them out of the market for a decade. At some point housing construction will rise again, and home prices will moderate. People who have saved up will be able to buy when this happens. The housing market is constantly changing. Another option is to live in flyover country.
Amsterdam 2012, pretty similar. Small studio but students pay more in rent for a box room then I pay down on my mortgage. Best investment ever made
Gen z here 👋🏾 Ramit is the only person with a video with this subject I would eagerly click on, because I know he's going to spare us the bullshit and be understanding.
The hopelessness people are feeling is so severe. Even gen alpha is being effected. A lot of people are so deep in the doom vortex and it's been building up for years and years, especially post pandemic.
I feel many young people spend as a manifestation of self harm, and with an almost suicidal mindset. I talk to a lot of people who believe the world is only going to get worse and worse. I'm optimistic by nature, but for a long time I had a lot of trouble even beginning to imagine myself in the future, and just trying to get through every day.
It’s because younger people are chronically online. I’d be depressed if I wasted my whole life on the internet. I say this as someone who is gen z.
@@PerceniI think that’s the other issue as well. We live in a glorified instant gratification society now, it’s hard not to be trapped in that mindset. I think more older people need to be honest and open about their stories too as there’s this thing pushed that everyone had their life together at 20, but that’s not true at all.
It’s hard to not feed into doomerism. As a millennial, I feel for the younger generations I really do. I think the best thing many of you can do is delete social for a bit. That was what helped me, it’s hard as I loved sharing my art and my online shop, but it’s not healthy for any of us and it creates cognitive biases because we interact with doom and gloom the most so we see it more. The internet and social media aren’t fun anymore. RUclips is a bit different as I use it to learn or relax, but everything is too fast paced and it’s causing such immense pressure on kids to be perfect. Y’all need to fail, have fun and enjoy life for a bit. Life doesn’t need to always be online.
The self harm part .....mmm
The world will likely get worse, but we will likely survive. It's not like there hasn't been mass extinctions or climate change before.
“We need nuance to live a rich life.” In a world fraught with confirmation bias being reinforced by buzz words/phrases and trends from social media, this thought is gold.
caleb hammer's thumbnail designer has entered the chat
hysterical!!
That dude is a terrible mess
His financial score thing is absurd. I said that i had 0 debt, 6 months of savings, 0 real estate and invest 50% and it gave me a score of 6/10... wtf
@@bruce7244 maybe ur not hitting your net worth by age?
Dawgg you're the only good financial youtuber because you focus on a healthy, fun lifestyle AND the finances. Your book is the same way and is great, I recommend it to everyone because it's the only book that asks you "what is it you actually want?".
Thank you for watching! And reading my book
Yeah the rest yell at poor people for being poor lol
Thank you so much for this! It's actually terrifying that so many people are deciding to just lay down and suffer. Especially if you're younger, you have the most valuable asset, time! If you give up, what are you going to do for the rest of your life? Do nothing to try to make your situation better, suffer and complain the whole time? It's a self fulfilling prophecy.
On the topic of the addiction to doom, I think people mistake being "well informed" with being tapped in to every horrible thing happening in every corner of the world at every minute they're awake. We were never built to have access to so much information at any given time.
I think the biggest issue is that it's a lot more obvious and in the open just HOW unfair the situation is now because of the internet and instantly available information. This is not the worst time in American history to be middle class, but it feels like it sometimes because there was a LOT more effective propaganda in the past.
The wake up call, for me, wasn't realizing "things are better than they seem" or that "I can take control of my future". It was realizing "things have ALWAYS been this bad, I've just been given enough information to understand how bad it is". Once I realized that, it was a lot easier to see how we make progress by continuing to push for things to get better. It doesn't go as fast as ANY of us want, but it DOES go generally in the right direction.
I'm living in Russia and things kinda sucks more. Average salary is about 30000-40000 rubles(it is less than 500$/month). But the most cheap 1-room apartment costs at least 3m rubles (37000$)
I just can't imagine how i can afford my own place. Renting a room costs 200$/month at least, plus bills, food, internet... I'm working to live, not to have fun :(
That thumbnail went crazy 🔥very important insights, its something ive noticed so much with my friends and makes it kind of hard to have more optimistic conversations with them, youve inspire me alot with my channel to spread more positive and accurate education while also empathizing and acknowledging the struggles that exist, things can be good and bad at the same time
🙌
I started working 2 years ago, and thankfully I have a dad that paid for my college and I have a job that pays me almost $200k right out of college. But I have friends that do not have this fortune, and I empathize with their feeling honestly.
Lots of college debt because university keeps getting more and more expensive than it's ever been, stagnant wages, very expensive living amenities... I'm in a very fortunate minority for my age group, but when your choice is either to live like a rat to save a decent amount of money, or live paycheck to paycheck to have a NORMAL life, I honestly don't blame people for wanting to have a normal life.
Cost of living has gotten out of control and wages have not kept up with it, we need to make the economy so that the average person can have a normal life with a good standard of living, that in my opinion is the bare minimum
Wow, that’s great! What did you study in college?
@@sunnc Computer Science, I work as a software engineer
I’m 25 and live with my family and I have to admit, even with me making above average in my state that it is possible to live the American dream Gen Z, you just have to be wiser than the previous generations, our purchasing power has been destroyed, my grandfather paid $30K for his house and made $32K that year (1976) my dad paid $80K for a 3 bedroom house with a basement (1995) and made $38,000 that year. Now I make $60K and the average house in my city cost $300K. We are not lazy we just don’t have the purchasing power the older generations had. The government endlessly prints money, which also artificially inflates assets like housing. Lastly, 60% of Americans live check to (about 200 million people) I agree that it’s possible to make it and buy a house but Gen Z will literally have to live at home and save for 5 - 10 years and hope inflation stays low if they want a chance at buying a home. (Those who’s parents didn’t buy them a house, about one third of Gen Z will have family gifting them money for a house)
I’m an old millennial with 3 alpha kids. I am not pushing college and if they need college I would encourage state or community. My dream is to buy a triple decker in Boston so each girl had their own floor to live and if they don’t want to live there they can rent it. However, I am fully prepared to have my girls live with me well into adult hood. The hardest thing for kids today is being born into toxic or unsupportive families. Kids today won’t survive if they don’t have support. Oh and my boomer parents saved nothing and live a wonderful life off their pensions. I’m so tired of them.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
Accurate asset allocation is crucial with an Experts guidance especially in times like these. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
My CFA *Julianne Iwersen Niemann* a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Our 3 kids are Gen Z and we teach them to save first, spend second. 2 of our kids listen and live that way… the other well it’s spend spend spend to keep up with peers. Peer influence is extremely hard, especially when kids are buying coach, gucci, etc. Thus it’s important to save to be able to just survive as housing, insurance and food will continue to rise like crazy.
Sounds like the 3rd would enjoy Ramit’s content when they’re ready to come around to it. As a Gen Z myself, there’s a high possibility that they’re surrounded by “saving is outdated” and/or “I’ll make the money back” narratives. Ramit not being so nickel and dimey about finance will probably really help your child over time ☺️
@@rayofsunshan you could be right around the narratives. As a Gen Xer we didn’t have narratives, it was just go buy whatever you want with zero thought of repercussions.
Funny you sound just like me I have three children 22 24 and 30 they all think I'm funny when I tell them how to save money they laugh at me😢😂
@@davidbrooks8809 yeah it’s awful… someday hopefully they will get it!
@@davidbrooks8809 We were probably the same way… wish we could go back in time and smack the back of our heads to wake up. 😂
Gen Z here. Things are very tough I'll have to admit. But I have two options - sitting and complaining or getting up and doing something. Sitting and complaining won't change anything and will only hold me back. So yes I'll have to work harder. My generation will have it harder than the boomers, but that's the reality to live with. I think the best way to go right now is to rack up on certifications if you're going for a certain field and to also learn how to invest. It may not be everything but definitely helps and has helped me so far.
In the past my parents and my grandma didnt have to invest to have a house. Im from South americas welthiest country and my parents got their house at their 20s. They finished paying it off now becouse the government trolled everyone with the bank credits for housing (with an interest that always will go higher). But i dont even have that chance, i cant even find a job not in my country, tried abroad and nothing. My two sisters live abroad and can barely afford her rent and they have to save up for their own house wich they may get by the time they are 70. In the mean time ofcourse they enjoy life and go on holidays or buy small things. But my parents at our age could do all and have it all without having to invest and put their capital at risk on trading.
@@andy381Sw I totally understand and agree with you. It is unfortunate that we have to make risky investments to make anything. Over the past few months I invested a lot of my savings (I'm in college so I don't have more than a few thousand) in crypto. It has given me about a 30% return so far and there is still potential. But at the end of the day, crypto is a risky place to put your money in. It's just what we have to deal with and hope that things get better.
Good for you. I know things are hard, but honestly? Things have been hard since ever. My grandparents lived through two world wars and a depression-my grandparents were from the UK and bombs literally fell from the sky for five years. The world pre-ww2 saw adult children living with their parents AND grandparents. Weddings were simple-couples wore their best clothes and got married in the living room. People didn’t take exotic vacations. We all need to readjust our expectations.
It’s hilarious to see the doomer comments prove Ramit’s point.
Right it’s very sad. Instead of blaming each other or thinking it’s all going to end, we need to be supportive and hopeful.
Lol wow the gasliggting.
62.9% labor participation rate prove his point? People with master degrees and 15 years experience in field working minimum wage jobs prove his point? Car lots having zero sales and no one buying cars prove his point? Mass layoffs in every sector prove his point? Wages being "up" means absolutely nothing with runaway inflation.
Wages are going up for the top 1% and ceos like always, but have been stagnant for workers for a long time and absolutely HAVE NOT KEPT UP WITH INFLATION, his biggest lie.
I guess you just like being gaslit by scammers sponsored by financial ads telling you its so ez to get rich now lol....
Toxic positivity, and false hope. Very soul crushing
In the past my parents and my grandma didnt have to invest to have a house. Im from South americas welthiest country and my parents got their house at their 20s. They finished paying it off now becouse the government trolled everyone with the bank credits for housing (with an interest that always will go higher). But i dont even have that chance, i cant even find a job not in my country, tried abroad and nothing. My two sisters live abroad and can barely afford her rent and they have to save up for their own house wich they may get by the time they are 70. In the mean time ofcourse they enjoy life and go on holidays or buy small things. But my parents at our age could do all and have it all without having to invest and put their capital at risk on trading.
Thank you for the positivity. Everyone need it now more than ever.
Decelerating inflation doesn't equal prices coming down, it simply means inflation is growing slower. You glossed over that rapid acceleration from 2020-2022, so if you were to look over the last 4 years, costs have outpaced wages significantly. If you were to extend that over the last 20 years, it's a lot worse. Which means most Americans don't have enough disposable income to make investments in the stock market and hence feel like this is the worst economy ever as you framed it. Instead of looking at eggs and lumber, look at housing and education costs, that is where the bulk of expenses go.
Live in a LCOL area, work remotely.
@@Scott_Stone
1) not everyone is able to work remotely, and
2) not everyone wants to relocate
Also though, my croceries went up yet again by literally 10% this month. As a low wage earner myself, I can tell you that my wage certainly didn't increase... This is not as "great" of an economy as he's touting.
Inflation mainly hurts cash savings and people who stay at the same job for a million years.
If you change jobs every 2-5 years companies have to be competitive with new hires. So your wages will sort of keep up with inflation.
Cash you have saved gets hurt the most it's constantly losing value.
If you invest in your 401k your savings will grow faster than inflation.
I'm not saying it's easy. I changed careers at 30 and lived off of part time jobs and student loans to get it done.
Now I'm able to save money in my 401k and it has definitely outpaced inflation. Last time I looked my 401k is up around 24% over three years.
We can either do whatever it takes to push through the bullshit or we can do nothing and cry.
@@Maidenless007when is the last time you switched jobs? You should be switching jobs every few years otherwise you will absolutely fall behind.
Also look for ways to no longer be a low wage earner. I'm not being a dick I was one. Then I busted my ass in community college at 30 living on student loans to become a mechanic. It's not even that great of a career earnings wise, but it's enough for me to put 8% of my pay in a 401k that is growing faster than inflation and that gives me hope.
There's always noise, and our job is to simply ignore it and stay focused on our financial goals. It's easier said than done, but it's definitely achievable.
I'm Gen Z (20f) working full time and going to college full time. I make a little under 40k a year. I thought everything was hopeless this year when I had to cancel my vacation plans due to not having enough money. Social media also is depressing 24/7. My eyes were opened when I took a Consumer Math class and watched Clearvalue Tax's video on 4 things to do when you get paid. Many people around me are under the impression that just cutting back on everything and saving money with low or no interest is the way to go but it is not.
A useful comparison is my brother and I. Both early 40's. He has earnt more than me most of his career. He also moaned for 15yrs about buying a house being impossible and mocking me for a more financially respinsible lifestyle. I am now almost mortgage free on two houses. He has a huge mortgage on one. This is just to say building some wealth could be as easy as taking your head out of the sand and making a plan
I could not be more thankful for living in this timeline. We can simply log on the internet and have Ramit talk to us about money.
I would rather live in the 80s where I could afford rent with one full-time job
Because I would sacrifice the Internet for affordable housing
Hey man imma keep it real with you. My parents and I lived a frugal life and it was honestly great. We had 2 vacations a year since I was a kid. We only got what we need and never on luxuries. We are pretty humble people. Frugal does not mean cheap. Frugal means you prioritize what you need and if you want treat yourself but with moderation. Plus we gave back to those in our community who were in need. Parents retired early (Both at 50) and are just enjoying life for what it is and they accumulated great wealth living like this and they are enjoying it together. Frugal lifestyle is good for humble people who are not attached to materialistic things and we still had nice clothes in the process. We just enjoy a low profile and not like to be seen. Cheap is a bad lifestyle. We never did that at all. I think the main thing is frugal people prefer comfortability over anything else. As long as we are comfortable we are happy. Frugal and cheap is not the same. You are describing cheap.
bought a house in 2014 that cost 2X my gross annual income. with 0 down and 3.8 APR, it took me 6 years to paid it off. that same house now worth 2X its 2014 value. although my salary is more than 2X of what it was in 2014, I don’t think I can paid off the mortgage of similar house in 6 years if i buy it tomorrow. Everything is much more expensive now. I’m very concern for my kids’ future!
There’s no way on planet earth that you could repeat what you did with a house similar in value today as that one. At least 15 to 20 years depending on income
kids can buy an apartment and sell it and upgrade to a house few years after (I did that) nobody needs a big house on day 1.
Having a difficult time squaring away how home price is 6X annual income (up from 2.5X 40 years ago) and the things can be good and bad at the same time, then saying wages are up.... The fact that wages are going up at a slower pace than housing means there's less discretionary funds for guilt free spending... real or not probably depends on your socio economic class. With that said, all 3 tips are great! Thanks!
Mortgage rates in the 80s were insane. The amount of monthly take home pay needed to make the monthly mortgage payment is actually comparable even though the price of the house has grown more than twice the rate. The Housing Affordability Index chart he showed at the beginning demonstrated that exactly. Housing has been very affordable in the last 15-20 years simply due to the very low interest rates. If that is all you have to compare against, of course younger people are going to complain.
As an example, he states a 1984 median house was about $81K, or about $250K in today's dollars. Put $250K into a mortgage calculator at 13.5% interest and a house at $450K @ 7%. You might be surprised how close the number are.
@@bgoode652 Quick google says 80s rate were 18%... this logic makes sense to me. Thanks!
In 1985 my parents had just ended the farming partnership with my uncle. They were struggling with the debt from the flood of 1981 and my grandparents came over every Sunday and berated them for being broke. I was 5 AND THE 80S SUCKED!!!!
they did the 80's wrong
Yes wages have been going up for low income earners but so have healthcare costs, education expenses, housing, and effective tax rates. Here's an idea for Ramit's next Netflix special: living in a US city working a low-wage job for a year.
That Netflix special would be a reality check for high wage earners😂
The guy in the stretched out Cisco T-shirt from 2004 has rich life that involves spending extravagantly on technology and clothing is where the cut happens.
Nothing wrong with it at all .. I come same sort of background as him.. and I love fashion but I change that first when I decide to have rich life.. to say I do have clothes which last longer n paid lot of money but worth every cent invested..
His wife owns a fashion company, so I’m pretty sure that shirt is worth more than your Roth
Thank you for showing the two sides of the coin and not focusing on the bad news and bad data only.
I believe that when we fill our minds with only positive and inspirational thoughts, we end up attracting all the good in our lives.
Thank you Ramit!!
We’re not giving up our finances it’s the way how modern society is now today towards Gen Z. It’s the price that we have to pay. Can you imagine that if Gen Z live back in the 80s 90s and early 2000 it would’ve been a lot easier for many of us. Nowadays, it’s so complicated because a lot of jobs are not even paying enough to afford rent and bills that doesn’t cover majority of it. That’s why a lot of these new companies do four payment plans to cover our expenses we can’t pay in full. We have generations before us blaming us because we’re lazy and not mentally strong enough to pull through. Generation Z nowadays it’s all about survival people who make these type of videos, get me frustrated because they lived in a different time where the economy was fine for them they didn’t go through a pandemic. That impact changed everything nobody of Gen Z can afford homes or apartments it’s unrealistic that the number is so high & we have to work harder just to make more money.
Sooooooooo glad you continue to encourage the GenZ as well as other generations! Let's work at losing the fear and gaining confidence in yourself!
Doubt this works in Australia. Currently working full time eating $1 bags of porridge and I’m borderline homeless here.
Sadly same here in Canada , average home price in Canada is $720k. The average Canadian it will take 12 years to save for a home down payment. Other markets in Canada it can be as much as 25-40 years of saving.
I feel for young people. Gone are the days of get a degree, save some money and in a few years you can own a house. 😢
@@dishboy14 But do you guys know that this was always luxury? Only Americans seem to think that owning a house is a must. Most of the world is living in apartments and always has. The golden times have become normal for you folks...
This content is extremely refreshing
“Just cut back on avocado toast” 🥑 🤣that’s great
Chili’s is my rich life, you take that back Ramit
You are right it was unaffordable in the 80s. We made it through. 15% interest was scary. As a boomer that is when my husband and i bought our first house. He was a utility worker and I was a stay at home wife with 2 kids. We had another kid after that. That is the period of time us boomers are referring to. Inflation and unemployment were also high. Every generation has obstacles.
My grandson and his stay at home wife (both 26) just moved into the home they bought with the two children. He is a barber. We boomer know the economy sucks right now. You should actually talk to some average retired boomers.
Me and my Roomates (all around 26 years old) are all exactly what you’re talking about, we immediately send half our paychecks to investments which are nearing 6 figures, all have built up emergency funds of around 20k, and can still very much enjoy our lives. Yeah it sucks our generation is getting screwed but we’ve all accepted it and done the best we can to build our lives up and because of it we feel so far ahead. 10/10 would recommend only worrying about what you can control
Great work focusing on what you can control!
As long as you guys aren’t putting it into a investment pool where you share your investments because I’ve heard stories of people and investment pools once they get a lot of money than one friend text all of the money and runs
It’s like the same with a lottery pool
If you win a lottery pool there’s a good chance one person will take all the money and run
I wish I had friends that I could work together and invest, but I have to do all this on my own because I don’t have friends
What companies do you invest in?
Your telling me that the restaurant that used to have 150 staff member that now has 50 and payes them 5% more is progress.
Oh man, what do you have against Chili’s?😂
I try to encourage my teens to not fall into the vortex of doom. My son is 19 with $16,000 in a Roth IRA and a net worth of $45,000. Can’t wait for my daughter to get a job so we can get her started too. Thanks, Ramit!
Great work teaching your kids about money!
@@ramitsethiANSWER THE QUESTION😂 What did Chili’s do to you lol
Yeah I think this is just because they’re young. 😅 I thought exactly the same in my 20’s. It wasn’t until about age 28-30 that I started to take my life seriously. It’s just being human. (Edit: and of course there’s exceptions to this! There are young people who take their finances seriously. I’m just painting in broad brushstrokes. This of course does not represent every person in a certain age demographic)
You are right, but I think the problem is there is a crisis of lack of meaning.... People feel only money can fill that void, but that will never be enough money to replace meaning.
I think a lot of people don’t think the world will exist by the time they retire
Thanks Ramit I have been following this Financial Breakdown Especially automatic weekly payment to my emergency fund and saving to my wedding and also I am investing(since bit longer) but one thing I am learning is flexing that spending muscle , I no longer crib about those lunches, coffee or dinners and I pay my credit card in full automatically. I feel much more relieved and lively spending on what makes me happy and at same time saving and investing for future. Thanks a ton
I’m a young Millenial but too old to be a Gen Z and what really helped me is getting off social media, the less you see people faking their lives, the less you will compare yourself to others. I use to watch makeup and clothes hauls in the mid 2010s and racked up a lot of debt but since I made a social media detox, I’m on my way to be debt free 🎉
The sad thing is that our parents had no debts on our age
Love it when people say "work harder" not acknowledging the underlying issues.
I work a full-time job in Ohio we bring home about $700 a week.. I have a co-worker that's 32 years old live with his mom he just bought a car for $65,000 took out $30,000 of his 401k and said he's living for today😂😮😅
Hell yeah
A younger guy I was working on the same shift told me, you only live once, that was his reasoning to go ahead spend the money he was making now, instead of saving. He went ahead and bought a new vehicle instead of buying a cheaper used one. He also believed in buying high end stuff, instead of the bargin stuff.
No need to work to feel bad it comes for free, but to be grateful oh boy… it’s really to walk in the dark and find the good one by one
"We need nuance to live a rich life." Amen!
I am always lost when ppl say that the economy is awful, that people are poorer than ever before. Like really. My grandma and her parent were suffering without food and they had 1 pair of winter shoes for a family of 4 people
What ? Job security no longer exists. You can be fired at any time for any reason, for no reason at all...and you most assuredly will be.
The Job Quality Index has collapsed.
Our elected leaders have sold us out to foreign interests and self-gain, our borders no longer exist, our savings were inflated away, real wages haven't increased in years, homes are unaffordable, family unit is broken, decent jobs are shipped overseas, low skill workers are imported from other countries to suppress wages, we are FUNDING our own invasion, our government agencies (IRS, Veteran Affairs, etc.. ) are ARMING themselves against the American people, and our Constitutionally recognized rights are violated daily. I give the USA 10 years, tops.
when enough people are really struggling there will be chaos and it won't matter if you are ok, it hurts everyone America is done hyper inflation cost of living low wages hate for middle class for no reason so young people wanna live great now the future is bad for the majority of people not the wealthy
@@calmlights Exactly. Every nation has its breaking point and it's approaching fast
Commodities’ price swings are still pretty important to keep an eye on as the dollar continues to weaken IMO. They’re good indicator of what’s to come for certain consumer products in case you need to find an alternative or plan to cut something out completely (eg cocoa prices are mooning right now, so chocolate is probably going to be temporarily priced like a luxury item in the near future). Ultimately you are right though, this is a $5 problem that doesn’t warrant much attention vs the $50k problems most could go tackle in their own lives.
They ARE NOT giving up-
They acknowledged the deck was stacked AGAINST them.
Sadly yes but they must fight and correct the mistakes being manipulated in this current shitfight.
If you say economy is gone, then you're trying to sell me something....😅
The budget system you mentioned is good…if you live in your parents’ house.
"Stretched out Cisco T-shirt" this one broke me.😆😆
You Americans make me jealouse with houses only costing 6X the annual income. It's 10 times your annual income in the Netherlands. And in some eastern European countries it's 17 times your income. A house costing 6X your income is still incredibly affordable compared to 95% of the world.
Americans don’t know how good they have it. As an example, people love to rave about Canada but not only is housing way more expensive but wages are also very depressed there compared to the US.
95% of the world?? Sir, you described Europe. More like 20%.
To be crystal clear…housing is not affordable in any part of the US where anyone would actually want to live. Wages here are also not high enough for the vast majority of people who don’t already own a home to ever buy a home. The US is a dumpster fire economy, it’s hard to imagine anyone in Europe thinking we have it better in any way.
@@KiingM Even though i only gave examples about Europe. The stats are still true that America is ranked 5th for most affordable housing worldwide.
@@elenakalliste I'm aware that America has problem just like pretty much every other country. The stats that i've read say that the American economy is outperforming most of Europe though. A few places in America have housing affordability on par with some of Europe. But a large part of America has housing affordability better than you will find anwhere in Europe.
I once heard a quote I love to this day "society wants you to be mediocre"
And imo it applies perfectly to the current world, with so man Gen Zs just quit trying to be in the workforce, imo the more that leave the less competitive it becomes to the ones that stay. "If you shot to the moon, you might hit the stars", it might sound like a common cliche, but just don't give up.
Solution : living with parents while saving for house until 30
And if your parents are abusive or don’t allow that?
I am a man & I agree my parents are very abusive.
Once they even called me a bastard & kicked me on my face.
Born in 1996. I’m not giving up just waiting for the right time. Also we aren’t the only generation getting hit. My grandparents are retired on a fixed income. The older gen is struggling rn and prices are just increasing year after year.
No cap, bussin fr fr
This has a “Translate to English” option lol
Cowabunga dude!
@@exxology1Of course. We don’t speak brainrot
I am 33 about to get a home.. first time I show my mom .. she said well u know you will need to cut back on all ur wants. 😢 that shit hit to fast 😢 & wished to have listen to her 10 years ago
Ramit, Thank you for a balanced viewpoint. You are correct, living in a a high-cost area it is difficult to keep things under 60%. But I am hitting all the other percentages recommended. Please keep up the great podcast!
Honestly people came to the realization that slaving away your whole life just to "enjoy" the WORST 10-20 years of your life. You can't enjoy driving a porche when you can't see the road. Can't enjoy a vacation to Tahiti if you can't walk or are having problems breathing. There's a lot of life that you can't enjoy when your old that the younger version of you would have greatly enjoyed that comes with stories to tell.
Yes and unfortunately tomorrow is never a guarantee. So you don't want to put off everything for those "when I retire" days. I have known soo many older folks that worked all their life and lived extremely frugally and put off having fun or nice things in their younger years and saved every penny so that they can "enjoy retirement" and they either pass away shortly after retiring or their physical health declines soo much that they can't do anything and then eventually they pass and never get to enjoy what they saved for.And then their children/relatives/the state(if there's no family to claim) come in and take all their life savings and get to reap the rewards their parents/relatives worked their whole life away for. It's very sad it's best to try to enjoy life whenever you can and don't put off your dreams forever because tomorrow is never guaranteed.
On paper making more than I ever have but the take home is roughly the same amount due to health insurance costs. My house is worth triple but my homeowners insurance and property tax doubled in the past two years. I was able to save more at a lower income threshold before. Who cares if you make more if the government just takes more in taxes? 401k is great but that doesn't really help me in the day to day 🤷 It is the lack of real progress that is depressing. I think that is why people feel frustrated economically.
Absolutely this! I'm making 50% more than I was 2 years ago, and I'm really happy about that. But I've since lost health insurance, seen massive increases in rent with trying to move to a smaller and cheaper place, and I'm not able to increase how much I'm saving. And with less than 5 years in the workforce, I don't have the leverage or experience to get better paying jobs. There's a massive disconnect between doing so much better on paper to the lived reality that life feels worse off.
If your home value tripled that means you have hundreds of thousands in equity and your mortgage is at 2% interest. Really seems like you’re in a great spot
Such a schizophrenic and disingenuous video. Only thing I have to say is, of course low wage jobs have largest pay increase RATE..when ur going from $12/hr to $15/hr of course it outpaces other jobs on paper. But ur not getting a house or be able to retire in that income class.
@@TonyCox1351 Equity only matters if you sell or cash out/refi. Otherwise it just means taxes and insurance skyrocket. On paper it's great but in practice it is not. And I don't have a 2% rate. It is a good low rate but the total payment is what matters. Tax and insurance will eclipse the mortgage payment in another year or so. My area was a lower COL before Covid but now outside money is moving in and inflating prices.
What a winner view on life and personal finance. I bless the day 7 years ago that your book ended up in my hands!
11:25 made me lol way too hard
This was such a positive point of view - thank you 🙏🏾
I think people find it easier to only view the negative and become a Doomer because then they have an easy excuse to use for their bad spending
Don't ever give up on you r self support 💯
He’s trying to give us hope, and we need it.
Thank you so much for this. I’d love to see more content on nuanced conversations about current economics.
Don’t have Chilli’s in the UK so not missing out 😂
Wow. I was like « alright another financial guru scammer 🤦♂️ » But then you were not. We need more positive people like you in this world. Keep teaching them healthy financial habits! Keep the good work!
You can be optimistic all you want but math is math. A majority of us will live poorer than our parents before us due to cost of living.
Would you then recommend going back to the same policies our parents grew up under, including higher taxes on the rich, more pensions, and more public services?
no for real!!! we never get a chance to actually save our money and not worry. most of us are stressed. i’m a very frugal person and sometimes i just want to live my life a little but i can’t because i have bills, etc to pay. i budget everything. i don’t care about being optimistic and smarter with my money. i’ve heard enough of that shit. the economy just NEEDS to change. things need to be more affordable. i’ve had enough
Thank u for providing a positive economy shift.. We miss that
Here is some food for thougut....... Inflation is not the only problem. It is corporate greed over empathy for the human condition. It is being told become a minimalist, live frugal and simplicity while the 1 and 10 percent are thriving off the labor and efforts put forth by the poor , all while doing the opposite and living their best life.
If I can add some nuance here: Companies will, by definition, try to maximize profit. It's like that old story of the scorpion. What matters is not "greed" but regulation. How far will we let companies go? How far will we let wealth inequality go? To many -- including me -- the answer is we've let it go too far.
Hi Ramit, I want to thank you for bringing forth the Vortex of Doom. This concept was never explained to me growing up and I had to educate myself (in my late 30s) through self observation and financial literature. There is definitely a psychological aspect to positive cashflow and I would like to encourage anyone reading this to grab a book if a particular topic is creating some aversion but deep down you know you need to master it. Knowledge is being shared so get fired up and educate yourself!
Gen Zers have no clue…. I graduated college in 09 and had to take a job making 30k. Had to share a house with 4 other guys before the place was foreclosed on forcing back in my parents house. A lot of these kids coming out of college are making 80-90k.
I also graduated in 2009 and could not find ANY job except part time retail, minimum wage, no benefits. The idea of being able to graduate and have a 60-70k job waiting for you blows my mind!
@@talizorah I remember getting a job that paid $50k a few years later and thinking I was set! And I finally made it! We definitely had it rough…
Stop Capping
@@stevenyia2778 seems unbelievable in todays age doesn’t
Hey Mr Nuance, there is a happy medium between a $200,000 wedding and a t-shirt with a hole in it! 😂😂😂
My kids get sucked in by ads telling them they need X,Y& Z to make their life better.....i tell them they have fallen prey to marketing. I encourage them to put money towards long term savings/investments (Junior ISA in UK).with the small amount of pocket money they get.
Need to develop these habits at young age.
1:05 I'm telling you life is way better back then. Neighborhoods we're actually communities.
After 20 plus years of not being in the same room for my parents when I went to visit them two years ago out in Arizona where they arresting and retiring at.
And I was just flooded with nothing but great memories from growing up.
Tell em Ramit!!!
So I was buying an RV a couple weeks back and...
The forums were absolutely flooded with kids looking to buy an RV to live in.
Dont give up, revolt
Funnily enough, my own rich life does have a small place for wearing overstretched Cisco t-shirts 😂
This is video gonna get negative comments but ramit is right. And if you disagree the data disagrees with you 😂
This is unbelievably awesome for my older high school students. So relevant, so timely, and so fun to watch with the right mixture of graphics, dynamic speaking, and fun. More like this for Gen Z would be fantastic! Thanks Ramit
They are hiring but cutting your hours to balance out. Raise pay but hours cut.
I went to school for finance and it turned me into a black eyes nihilist. The problem is inflation compounds and prices rise exponentially while wages go up linearly over time. I would need to invest 6k a month starting now at 24 to have an average retirement at 65 in a monetary system that will fail in the next 10-15 years.
Please show me your numbers. I do not believe you.
I’ve always been an advocate of investing since a teen. Now in my mid 20’s, after numerous trials and errors, I've boldly delved into the stock market, and it has paid off handsomely.
@LogosandLogic My colleagues had a good laugh at me when I told them I started my journey with $5k capital and how I accumulated over 5 figures within a span of 7 months. They never believed me until I pulled out my P&L.
I know that learning the ins and outs of the market isn't for everyone, that's why personally, Jonas Herman oversees my investments.
Jonas Herman is the brain behind my success. I've gotten into a plethora of assets with $4k spread across stocks (options and futures) for the short term and Roth IRA, index funds, and ETFs, for the long term. Now I sit back and just reinvest at intervals while I handle my other businesses.
The stock market is gambling. I see no reason why anyone would want to gamble their hard earned money.
@@Miawilmore I’d like a discussion with him. I've bought courses and still can't make any progress with my investments. Any means to reach him?
Sure,
Hermanw jonas (a g mal comm
Im glad I was able to hear some positive thinking for once. I am a local government employee who currently isn't paying rent and has no mortgage (I am currently blessed with a program in the county I work that allows a rent free apartment in exchange for being an emergency point of contact on the property). I started the search for my first home a few months ago. I have always been careful with money and by my own self control and divine intervention, Ive been able to save a decent amount of money. I will say that I am still a bit dissapointed with how expensive things are because it just doesn't seem moral. Good, honest, hard working people should not have to slave away just to get by. Thank you for taking the time to again try and sway people towards a more positive perspective, as we are not living in the Great Depression or WWII as other commenters have said. However, I am having a hard time being optimistic for the future.
Wage growth might be higher now but the inflation is compounded more year over year than most wage growths
This is so true. People love talking negative about the economy but when you say positive things they think you’re crazy. The Psychology of Money book opened my eyes to this reality. Misery loves company, even in 2024. Love your videos bro!
In the UK the young are paying highest taxes sinse ww2 to pay for baby boomers tripple lock pensions. Yet they may never have a state pension themselves. Its going up to 68 and it keeps getting raised. Meanwhile the parties need the boomers vote so theyre punishing the young to pay for the old.
Wow……I thought the US had it bad 😮
Also read an article about the UK young adults and the polarizing of the “haves” vs “have nots”
I support your message, but let me explain why these people feel that way. You see, people live in the gap between their spending and their income. When we (me and my wife) were able to save around 10% of our income we felt really bad, because our standard of living is already quite low. Then the circumstances changed and it became 60% because the income grew and the lifestyle stayed the same. So we were feeling pretty great about ourselves. We felt like we have a bright future. Then the opportunity dired out and now we are back to around 30% all with the same standard of living. I would say that the financial confidence and the sense that you can make it starts from 50% of savings if you are a high earner. Anything less feels like working to live this life now and only when it becomes over 50% you feel like you actually contribute towards something. With 10% savings rate we could only afford to save money for emergencies and big purchases. With 30% we can start investing with a little glimpse of hope. Basically I described 3 totally different mental states of the same high earner couple. I'd say this can only come from that gap that you see in your bank account and not from a RUclips video. It's all too personal.
Americans still have a lot of earning potential. They should be able to balance the future and the now if they work hard enough.