AHHHHHHH I can’t believe I made the cut! One of my followers let me know to watch this video ASAP! You’re so right, I’ve easily spent another $12K on repairs and renovations since buying!
When I was house hunting, I used Zillow and the county website to help me estimate the mortgage, HOA fees, taxes, and insurance. It gave me a good baseline amount and I had no surprises.
My favorite part about the S&P is when people say "If you take the top 10 stocks, you'd make 10x the S&P" without realizing how it's impossible to know which 10 to pick
@@GatesontheGo His point is this would be a very bad strategy. If you did this 30 years ago, your stock portfolio would have grown 6.8% annually since then. The S&P 500 grew at at 8.7% over the same period.
Luckily for me, when my wife and I got married we were both dead broke college students. No prenup necessary because neither of us had a dime to our name.
I always say I will feel rich when I can 1. Go in the grocery store and load up my cart without worrying about putting stuff back because I'm over budget 2. All my bills are on autopay WITH enough money to always cover the charges
How much you make a year? Partner? Double income? I can do that but then if I want to vacation I can’t. Partner of mine works two young girls it’s a rat race lol
One other downside of having a low down payment is directly contradicting the reason people buy homes: you don’t have any meaningful equity and you won’t for several years. If you end up in a situation where you have to sell the house within 3-5 years, you probably end up losing money on transaction costs unless the home value has increased a ton in that time.
Agreed. There's a reason the general rule of thumb for buying is if you're planning on staying somewhere for 5+ years. Sometimes the market is really good and you can make back your money in a shorter span, but not always. Also, homes don't always appreciate, which a lot of people don't get, especially if it was purchased in a hot market and you're trying to sell in a cooler one (*cough* 2008).
@@totuudentorvi7781 I have always thought that. You only really realise that equity if you downsize at some point in the future. Otherwise, the cost of housing will rise across the board and so the "equity" in your property will get swallowed up because the next property you buy will have also risen in value over time. You can't "invest" in a property that you can't easily liquidate due to the fact that it's the roof over your head.
Except the equity you would have on the house you still have on cash or something else. Putting more money down doesn't create equity out of nowhere. The real way to increase equity is getting a short mortgage. You spend way less on interests and build equity quicker.
I have a friend who had a business and a house before he got married. They got a prenup and his fiance happily signed it. Still married 25 years later. Another friends daughter and husband got a prenup, not for money, but in case of divorce. Neither really had money at the time, but their prenup was more about if they divorce, who gets the kids (if they have any), the dog, the furniture etc. Still married 15 years later. Anyone who is "offended" by a prenup is suspect.
Makes sense. Talking about a prenup is a heavy topic and if a couple is able to discuss it openly, it is an indication that they can do well in other areas of their relationship. It's no different then talking about if they wanna have kids, how many, move to another city, will one become stay at home etc
I’m happy it worked out for them but prenuptials don’t work for everyone. I personally believe in prenups but they aren’t for every relationship/couple/marriage.
@@MestizoMoney You know, everyone wants to trust their partner and no one gets married thinking that things will end badly. We are going to be together forever, right? However, from the percentage of divorces, it doesn't work out a lot of the time. Money often makes people act in ways that you would not think that person was capable of. Folks need to protect themselves, especially with a second marriage where there are children from other marriages involved. I would have absolutely no problem signing one.
What ppl are having problems with money is money management, you can make 60k with no debt at all only housing then you can do the vacation or free guilt money. But if you are making let’s say 100k a year and you’re in debt then you can’t do the things someone else can with better money management.
Dude is another con man selling his personality. RUclips started feeding me his shit and it just says nothing other than him casually hawking his products.
Gotta love these financial experts who are married. If you ask any sane person if they would take on a 40% risk (divorce rate is 40%) to lose 50% of all of their money, they would tell you you’re absolutely crazy do not do that, and yet, that’s exactly what you’re doing when you get married. And for what? A better tax rate? A signed piece of paper saying you’re married?
@@YaYousef5if you think all you get from marriage is a lower tax rate you shall definitely not get married. Also, if you are thinking about divorce before you even got married, you shall not get married. And also if you think about splitting your shared wealth after marriage as loosing half, you shall, again, not get married in the first place 😉 I’m writing this as a married breadwinner with only my income in the family.
@@michaltakac673 I'll 100% not be getting married because I don't need to sign a paper and risk half of my assets and potentially years of alimony payments to love someone. That's fine if you want to take on that kind of risk or require a signed paper to love someone. It's bizarre to me.
Why? Why should anyone not have the right to complain about inflation?? We spend 3k a month in groceries. Can we afford it? Yes, but I still find it ridiculous that prices have become out of control. Your words remind me of people like you who don't see someone who makes a good living as inspirational because they are too bitter to be inspired.
@@flacadiabla3193 You have wildly confused yourself if you you believe I think people who earn that much money have it good because I'm bitter. People who earn that and manage to make themselves worried sick about money are the ones being too bitter to enjoy what they've earned. Really just reinforcing my original point. That you manage to spend 3k a month on groceries is quite the feat, though. Probably look into how you manage to do that.
Flaca I know several people that make six figures and some that makes millions a year. I DONT see them as inspirational. A few of them are inspiring sure but not really considering I went to school with them and know I’m just as smart. Look a lot of people that borrow 1.6 million at age 23 can do it cause they have rich family members. Or others get into real estate doing deals by having rich friends back them while the poor kid does the leg work. It’s not super inspiring but just another job. Like wake TFU. Most jobs that pay six figures or up pay well because of the monetary system we have today. If you can borrow new dollars into existence you’re rich. You’re rewarded way more than others working in other industries. If gold was still money today banking would look less sexy. Banking and making tons of Money is great cause the money supply is elastic. The federal reserve is privatelyowned paying a 6%dividend to shareholders.
Also how the hell do you spend 3000 on groceries? I could eat out every single day for a month and not spend $3000. Then again I did live in the Philippines among real poor people years ago and now grow a lot of my own food. But the other comment is right. Sure you’re right that rich people can complain just like anyone else. But it’s also true that if you’re rich inflation affects you less end of story. If you’re paying 3000 on food a month that’s like 36000 a year on food which is what some farm workers make in an entire year. Like rich people also have assets that benefit from inflation or money printing technically. The U.S. declared bankruptcy in 1971 and went off the gold standard. So we’ve had Fiat ever since. But what happened after 2020? A crap ton of new currency was created by the government and federal reserve and banks. Banks were told they could lend with zero reserves basically creating new currency out of nothing. Milton Friedman said inflation is always and everywhere a monetary phenomenon. He’s partly wrong cause trade shortages or sanctions etc and government banning or regulations dramatically affect prices on something’s. But ya when ya spend 7 trillion new dollars food costs are going to go up. Workers growing food for instance need to earn more to afford to live or pay rent. It’s nuts how the federal reserve owns 2.7 trillion in mortgages propping up real estate. Like wtf is a private central bank boosting asset prices? The private central bank was setup to be a buyer of last resort to essentially prevent Great Depressions not create massive bubbles which led to great depressions and then they have to do bigger bailouts once bubbles pop leading to bigger bubbles.
@koltoncrane3099 To answer your question, we actually do not enjoy eating out. We purchase high-quality food from farmers in support and wild seafood. We understand most families can't afford the kinds of foods we purchase for our family, yet despite our comforts, there is always someone who has more than we do, but it doesn't mean we feel bitterness that others have more. We are inspired by the success and hard work of others. We learn from others success-which is why all of us clicked on this video. We may not have suffered financially in life, but we think of our kids' future. People who have little don't get to monopolize on complaints. Quit hating on the rich.
Rich is sooo relative. I make under 100kbut have saved most of my adult life and have over 1million in 401K and investments. No mortgage or car payments. So, for me under 100k annual income is rich
It also depends on your families situation. Personally me and my wife are doing great and just started our careers. But our parents are immigrants and sacrificed a lot for us and have close to zero in retirement. At best in about another 5 years they can maybe have their mortgages paid off and paid off cars.
What directions have you taken your wealth? How would you describe the value 100k brings you? Im currently struggling while making near 100k in canada with a mortgage and a sizeable chunk of debt being paid off monthly through a government program at 0% interest over the next 4 years. Technically no car payment but the cost exists in those payments towards debt. Not a lot of money spent in my house either with no decor and just old furniture that came with the place or free/cheap from family. I live in a home, while its 70 years old and quite modest, just an average bungalo.
Don't call it a prenup. It is a financial plan. It can start out with talking about how things are managed during the marriage and then move to pre-existing assets.
I think some people don't understand that a prenup can actually protect relationships. If a divorce happens, and the guy loses half his business he built up himself, then sometimes not only could it ruin the business, but it could affect the overall income of what the business generated. Better communication could possibly be coming to a conclusion that if the relationship doesnt work out, to sign an agreement early on that the business owner could support the other person of some agreement/settlement. That would be how I would imagine it.
@@starlightwaters1 yeah im in the chapter about prenups in his book right now. Im purposely single forever so it doesnt pertain to me but I love psychology and money psych. he makes it really clear about why people don't understand its to protect relationships. he also said 98% or so of the population don't need them because people usually have the same amount of wealth when they start dating. its mainly for wealthy folks who had wealth previously before they met their partner
@@starlightwaters1 why you're mentioning only the guy? do women not have businesses and assets? I personally own a house that i want to protect in the unfortunate case of divorce
LOL this is a great idea. I used to tell people spending money on 1-hour photo development was a "waste of money" and that we needed to "keep a budget." Wrong on both.
I’m commenting to follow for a response to your post. A video or a book specifically for teenagers. I have “I will teach you to be rich” and it’s a great book but I’m not sure that my teenager would read it. It would have to be a “fun” or an interactive book somehow.
My kids are tired of hearing me talk about finances. I just start with something simple and not a lot all at once. I have always talked to my kids about credit cards and explain how they work in ways they can understand.
I would say you remind me of a cool guy who was on the tim ferris show more than once. But I realized you are this exact guy. Don't know why I didn't search for your youtube channel before but I'm glad I found it. Cheers from Brazil!
@@brock5946 that's great, however it's impossible to know whether or not Nvidia will continue to be a great buy over the next 10, 20, 30 years. My original post points this out. Pretty much all of the top 10 S&P500 companies from the 80s are no longer in the top 10 or have become low performers Why take such a massive risk when you can beat 90% of investors and get solid performance, at much less risk?
It's not as bad as you think. The top 10 of the S&P 500 in 1994 have returned 6.8% over the past 30 years, compared to the 8.7% returned by the S&P 500. Still a difference of $50k on a $10k investment in 1994 ($120k vs $70k), but you still would have had pretty strong returns.
@@brock5946At the rate world governments are investing in AI as a weapon, NVIDIA is going to be a MONSTER in the stock field. Invest now, and invest steadily, because when it explodes, it's gonna be full on nuclear lol
So thankful for people like you Ramit, who are there to knock silly myths out the water. You've helped me SO MUCH, SO MUCH. and of course that so called "generational wealth tik toker" is selling a course/service lmao because even he cannot outperform the S&P...not even close. He's a wannabe Dan Lok..scammers. I FEEL rich already with a household income of £160k in London, UK.
I was thinking the same thing! I'm tired of business gurus that openly say they have a horrible relationship with their family/parents/dad, don't have kids, don't want kids, and talk about how simple it is to be a billionaire. All you need to do is sell something that someone wants. Well thanks, Captain Obvious! And all the gurus seem to do is talk in circles reciting an essay they "wrote" by compiling prolific quotes.... You know I read, And as so and so said. It made me think of this quote that I heard. And therefore, it's so simple.
I borrowed the audiobook from the library and I loved it! Now I have my own physical copy (guild free spending) and I am reading it again. This book belongs on my bookshelf! 🥰
That was great, more of these quick take reaction videos please. I’m curious what you think of The Budgetnista (I like her, I think you may have recommended her?) and “Your Rich BFF”. (Maybe also Graham Stephan, Romain Faure, Caleb Hammer)
I'm from Norway, where the prenup concept of everything you had going into a marriage is yours going out of it too is written into the marriage laws. You still need to have kept the asset inact though. A bank account that was at 100k before marriage, but was drained during the marriage will only let you keep the lowest amount it ever was at, since the money used to build it up again during the marriage would have been both of your money.
Well yeah, it makes sense. If you had 3 kids or bought a car and crashed it...then divorce, it would be ridiculous to expect to still get a 100 k in the account.
A prenup doesn’t have to be I get 100% you get 0%. You want your partner to know that they won’t be out on the street with nothing if you divorce. Also someone asking for the prenup should offer to pay for a lawyer for their spouse so they’re equally represented. If you don’t want them to have their own legal advice and you want them to get 0%, then you shouldn’t be marrying that person.
If you aren't careful to ensure the split is equitable in your prenup, you risk getting parts of the contract nullified (throwing out the whole prenup is pretty rare). If you are married to someone who is a stay at home parent and try to enforce a prenup without sufficient spousal support, that is very unlikely to hold up in court.
I am living in San Jose, CA. All single family homes in San Jose are over $1M, but they all are very old. Will spend a lot of $ for repair. If I don’t have $1M cash, I never want to think about buying a house. I hate debt.
@@johnle231 Le is not common first name. I was born and grew up in Viet Nam for ~23 years. I only met one female and one male who had first name Le at my schools while living in VN. Have been living in the U.S for 15 years, I haven’t met anyone who has first name Le. My dad named me as Le since I was born.
@@LeNguyen-im8dm Ah ok thank you. I wasn’t sure since I’m Americanized Vietnamese born here in the states haha.. Did you move straight to San Jose from Vietnam?
1 thing about owning is your costs should never go up. I bought 11 years ago. I could not afford rent or a mortgage in the city if I hadn’t purchased back then.
"Unlikely event you get a divorce." It's actually quite likely and it's not romantic to think like this. Since divorce rates are over 50%, it's actually more likely to fail. A prenup can actually weed out gold diggers - they would never sign one and talk about how this is supposed to be love and other manipulative tactics.
You should dig beneath that 50% number. It's considerably lower once you remove second marriages and the divorce rate has been falling for decades. It's quite interesting.
I'm so glad you point out that wealth is a relative term. My old boss used to introduce his sister as the wealthier, better looking, more successful sibling. She had close to $100m more than he did. Both were billionaires. 😅 I think people FEEL successful or "rich enough " when they can keep up with the lifestyle of their friends and family. One of my most vivid money memories is how humiliated my father was when my mom told his brother (my uncle) we couldn't afford to go skiing in Aspen with him.
My wife and I are not Rich but we signed a prenup. We are both ambitious and appreciate a certain level of independence so we wanted to keep certain assets and accounts separate. We also agree anything we build together should be split evenly and anything we grow separately should be the sole property of the builder. Everyone signs a prenuptial agreement when they get married. It's either the terms you want or the default law of your state. We decided we wanted to get married under our own terms.
Yes! Paying new truck prices is nuts! They lose resell value quickly! I paid 40K for my new truck 20years. Was able to get a much nicer truck this year for 45K and it’s only 4 years old. It was a private seller and had a ton of bells and whistles that would be 100K new. Paid cash, so he was willing to sell quickly. FYI Never buy used without an inspection. It’s worth every dollar!
16:10 Who buys a $200k house with only 3% down? I'm sorry but if you can't even put down the $40k to avoid PMI and minimize the cost of having a 6.25% interest rate then you shouldn't be buying a house!
There was a canadian show called till debt do us part. The hosts rule was home maintenance/ upgrade costs should be budgeted at 1-4% annually of the homes value. New homes leaning to the 1 and older to the 4. My home is work 600k 4 years ago we had to replace our hvac that was 14000 and fits well inside that 1-4% you might go 5 years without a major repair but then sink 50k into a new kitchen and bathroom well that will probably be the 5 years worth of 4%
Ohhh i just love love love this video @Ramit!!! It's Edutainment as its best!! I love the question about how much you need to be rich and people made it all about income. I love the philosophy that you CAN live your Rich Life with a "regular" income if you can manage to hit the % on fixed costs, etc. Ramit recommends. Thank you Ramit! Please keep sharing more videos like this, since they help us open our minds and have perspectives on different financial topics. At the end each one of us is going to make their choices! I wish to incorporate more of the psychological aspects to business’s finances! Any idea?? 🙏
"Contracts are written in love and used in war"... I got that from a Patrick Boyle video and I can't remember who he attributed it to, but I think about that statement a lot.
15:47 On the subject of what a home costs, don’t let people sell you on tax deductible interest. First, you’re paying a dollar to save 20 cents. Second, you may not even get that 20 cents. Mortgage interest is an itemized deduction, and you only benefit to the extent your itemized deductions (mortgage interest, donations, medical expenses, a few other things) _exceed_ the standard deduction ($15K for singles, $30K for couples). Our friend here with a $200K mortgage at 6.25% interest may not see any tax benefit.
Everyone should run the numbers on a house payment for THEIR finances and their LONG-TERM needs! Houses definitely come with much more costs than the mortgage, BUT there are no current laws to protect renters from greedy landlords, and everyone does not have the salary to easily absorb an annual (in some areas, random) 7-15% increases on their rent, like a multi-millionaire.
@animalstylefry There are some housing options that are rent-controlled, but those are not the norm, and in areas where it may be more common, the properties are being turned into "market rate" housing whenever the owner has the very first opportunity.
Think he was being lowkey sarcastic for those who would get it while also suggesting that you shouldn't get married while already planning to expect a divorce.
Never had individual accounts, and glad that way. Makes things mine/yours (assets/responsiblity/etc) from the start. Due to health decline, my wife does 95% of stuff around the house, so how would that work if we did everything 50/50
Why ramit is great is he constantly speaks about the emotional factor with money. Investing is not an exact science like people assume. Would highly recommend reading psychology of money. Similar to ramits advice
Rx 2 to Prenup-refusing lady: I think Rameet brought up some valid points, but I think the discussion about prenups and clear deliniation of assets should have happened long before proposing to the women. - If you notice that the relationship is getting serious and likely headed towards the Alter, and if a Prenup is a redline for you - Then you should start discussing it (and potentially sign a preliminary one) prior to you ever proposing to her. - It would prevent the two of you from being at an impasse after she has already said Yes to you and it would keep her from claiming that she only agreed to it because she was put at risk of embarrassment, if she didn't sign one.
I wouldn’t consider any income to be making someone rich. You’d feel rich if your income easily covers all your expenses and spending. If the income stopped you’d still be broke in 2 months.
Many people who have high income jobs lifestyle inflate to where they can't live their same lifestyle without without those jobs. Say you randomly get laid off (which happens more and more these days even to skilled people) well guess what? You are screwed until you fix your spending habits. A huge chunk of Americans who are millionaires live like they are hundred millionaires and then some of those hundred millionaires act like they are billionaires. It's a hedonistic treadmill that never ends.
Lots of rents include those. I think it was a bad example but his point is that home ownership has a lot of additional costs that people do not factor when they decide to buy a home.
Many rentals have utilities included. I live in a rental appartment and our electricity is not included (every appartment in the building is metered). But our water is include, and so is the heat because we have those olds school radiators with hot water... In the summer electricity bill is about $100-150/month (depending on how much we have to run the ACs), the rest of the yeat it's about $75. If we owned..we owned anhouse we would be paying for the heat and the water too not just electric. If we lived in a condo building, not sure how that works.. but there's the maintenance fees on top of the mortgage which I believe include the utilities? Not sure.
@@charles_cody This. A lot of people don’t consider the increased utility cost that comes with a large home or a house with a pool, etc. I own a 1br condo that is about the same size as the apartment I previously rented, so I don’t really consider my utilities a phantom cost because they are the same as I would pay renting. But I know many people who own SFHs and their utility bills are astronomically more than mine.
@@charles_cody 100x this. Utilities are a phantom cost because you assume that they're going to be comparable to renting. In reality, they're much, much more expensive.
In some states, premarital property remains the property of the individual bringing it to the marriage in the case of a divorce. It’s called the Communjty Property Approach!
People don't realize how rich they are compared to other countries. I live a rich life compared to what I had in my home country. Usa is still the best country in the world. All the people living here should feel proud and happy to live in this country.
On the last video Ramit reacted to, you still generally pay utilities for properties that you rent. And we put 30% down on our house. No PMI, better interest rate, lower monthly payment to invest the difference. We ended up with a mortgage and HOA payment that was similar to what we were paying for in rent at the time which got locked in. The rents in our high COL area have since raised 33%+ while our house has also increased 20% in overall value. In some situations buying is better for wealth building but definitely be sure to consider the phantom costs and if you plan on keeping the house at least 3-5 years before buying.
Have learnt so much from your content, one thing I do disagree with though is that having your money double every year is a safe investment....when inflation is high (I'm talking M2 money supply, not CPI Inflation, which is a botched number), doubling you money every 7-10 years isn't enough to keep up with the increase in M2, and this will only get worse as debt to GDP grows......
I have a problem where I see that I'm making much more than the median household income in my city, but I absolutely don't feel like I'm getting ahead, even though I am. The solution is understanding that, over time, I'll see the difference more and more.
It can be tough if you are middle class and being responsible with your money because you are likely sacrificing significantly compared to your peers. Two households making $125k/yr with one maxing out two 401ks and the other only investing enough for the company match have over a 2k difference in spending money each month. While one household can probably retire a decade earlier than the other, that $2k per year can pay for much better vacations, date nights, hobbies, housing, and cars.
Feeling rich to me: 1. Filling both of our commuter cars every week without worrying about the costs. 2. Shopping for groceries for the week without having to check the bank account. 3. Having enough money in the bank that we can pay the mortgage 1-2 weeks early. 4. All fixed monthly costs on autopay without worrying about overdraft. 5. 6 months of living expenses in a HYSA. 6. Taking the 401k match at my job.
The biggest thing about rich in the Bay Area is it boils down to wether you own your house or not, cause you may have made a lot of bad decisions over the years financially but you entered the market in a crappier city in the Bay at the right time in the 1980s or 1990s and your property now is worth over a million, so on paper you seem rich.
For me to FEEL rich I’d have to have enough money to spend 75% of my current income without needing to work. Being rich to me is freedom of choice. If I choose to do nothing and I’m still alright financially. That’s when I’d feel rich.
This awesome. Love watching these. I think you took Alex Hormozi out of context though. He runs a PE shop. He was talking about multi-millions of dollars. FDIC insurance isn't going to cover that. Better to trade into bonds to get the extra amount of interest and more security.
Don’t ever buy a house where you owe an HOA. They suck and never ever buy a house where the HOA is that high. She should have actually been paying 1750 ish without HOA. Also she is right. Houses cost more. The thing is that times out. 10 years down the road or sometimes less you will be paying less even with the hidden cost because of inflation. I bought mine during the pandemic and because of how high the inflation went, I’m near dead even with renting even including everything she mentioned
"Phantom costs" owning a house. Well, of course! In renting, do you believe the landlord simply takes care of maintenance, taxes... etc out of the goodness of his/her heart? It's all baked into the rent (plus a profit). If the landlord's costs go up, then rent increases. I completely agree with assessing the cost of ownership, prior to purchasing. But, I feel that owning is a good thing, if you have done your financial homework.
The landlord can't simply pass along their costs. They can charge what the market will bear. Sometimes that generates a profit, other times not, and often the landlord doesn't even know his/her own costs.
Just looked up the median income where I live and it’s only $27k. This trips me out cuz I thought I was just doing fine and my income is $145k. He’s right, I guess you never do feel “rich”
The young woman who paid a mortgage of $1100 and after expenses (phantom costs) was paying $2030 ( or so). But she WAS covering a big unexpected repair in her Home Warranty of $35/mo. That’s cheap! Good for her.
I love this content- so normal and common sense! That being said- you’ve said “investments” should be from take home pay but 401(k) is pre tax- can you please discuss a CSP model with that in mind (or point to a video that includes such a revised model)?
yes and the security of not having to move or be at the mercy of others. Though having said that you are at the mercy of a bank if you have a bad mortgage.
Reacting to the Prenup-refusing lady: Assuming the video is not just a skit, HE SHOULD NEVER MARRY HER. - She is making it clear that she wants absolute rights to all his assets (w/out him having any rights to her's), regardless of how and when he acquired them. - Her attitude about the prenup suggests that she is in the relationship partly (or fully) due to money. - If she ever relents and signs one, she could use this video as evidence that she was coerced and pressured into signing it against her will. Ultimately, that kind of an argument is not something you want to win and there are other women who will be willing to sign a reasonable prenup without causing such headaches.
his attitude is not the best either I would break up with a guy if he talked to me like that and I DON'T MIND THE PREUP because I also have assets I want to protect but his delivery.....horrible. he's gonna be a horrible husband. Also i don't think she understand that prenup is more about protecting assets before marriage not during the marriage I also didn't know that until after I researched about it our education system is not the best. money is important in relationship and as a woman if they're planning on having children the woman will likely go on maternity leave and stay with a child maybe even for a couple of years so she's gonna take a break from her career and the idea that she's sacrificing her career for her to get nothing if the husband wants a divorce is terrifying. Again I wouldn't be with him his attitude is not responsible husband he said you came with nothing undervaluing her contribution to the family they're gonna start...from the beginning of the relationship. biggest red flag.
Prenup Is for both partners, to come to some agreement. I don't understand the heated emotions in there, she don't want to sighn something she has discusion about before?
@@barborakopalova4583 I'm assuming he probably never gave her a heads-up early in their relationship that if their relationship progresses to engagement and marriage, then he'll expect that they negotiate and sign a prenuptial agreement.
Actual costs of home ownership matter. Utilities don’t typically belong in a comparison as they apply with most rentals as well. Other costs are usually just hidden in a rental price that increases each year. Of course with renting you are just gambling all the time. Landlords and connected neighbors can really make or break a rental and you won’t know till you are locked into a lease. Landlords and neighbors will definitely constantly change in high density housing situations. You can move, sure, but that isn’t exactly cheap. Especially as you get into larger properties and get more stuff. When I got my house one of the most freeing feelings I had was knowing I could crank up some music and no one was around that would care. It took a couple of days to realize my new freedoms after years of repression.
I love your show, and get a lot out of it, but I do live outside of the US. @Ramit, I'd love to see some shows with folks elsewhere - France, UK, Australia, Malaysia... perhaps sharing insights on money culture, expectations, habits and challenges. I feel like that would give some new ideas on the choices we make.
People who don’t sign a prenup should realise their partner is deliberately choosing for them while having the financial freedom to leave them without thinking about it.
AHHHHHHH I can’t believe I made the cut! One of my followers let me know to watch this video ASAP! You’re so right, I’ve easily spent another $12K on repairs and renovations since buying!
Thank you for an awesome video and for being so candid
Your breakdown was great!
@resumeofficial where can we follow you? 🙏🙏🙏 loved your video!!! ❤
Love this one!
When I was house hunting, I used Zillow and the county website to help me estimate the mortgage, HOA fees, taxes, and insurance. It gave me a good baseline amount and I had no surprises.
I love “fight for simplicity” - it’s such a mental load off when things are simpler and work even better.
"An idiot admires complexity, a genius admires simplicity"
@@BabySisZ_VRI'm feeling personally attacked right now
My favorite part about the S&P is when people say "If you take the top 10 stocks, you'd make 10x the S&P" without realizing how it's impossible to know which 10 to pick
Yeah, investing would be so much easier if I could predict the future
You would know if you did your research 😂 the audacity of these people
Well top 10 means highest market cap of the S&P so if you want to follow that advance they provide the list. Go buy
@@GatesontheGo His point is this would be a very bad strategy. If you did this 30 years ago, your stock portfolio would have grown 6.8% annually since then. The S&P 500 grew at at 8.7% over the same period.
Or could get a large cap growth fund like SCHG, VUG, QQQM and take advantage of the MEGA cap companies
Luckily for me, when my wife and I got married we were both dead broke college students. No prenup necessary because neither of us had a dime to our name.
That's the way 😂
You sir are living the dream! Build it together.
Same
That makes sense 😂
did you guys make it
I always say I will feel rich when I can
1. Go in the grocery store and load up my cart without worrying about putting stuff back because I'm over budget
2. All my bills are on autopay WITH enough money to always cover the charges
I feel you. ❤
How much you make a year? Partner? Double income? I can do that but then if I want to vacation I can’t. Partner of mine works two young girls it’s a rat race lol
Agree, I have a third... Able to invest 5% of each paycheck towards retirement.
Auto-pay without stressing and having to quickly move money from one account to another to avoid overdraft is the biggest flex
I have this and I'm definitely not rich. My current income is well below median, it's just that my outgoings are also below average.
One other downside of having a low down payment is directly contradicting the reason people buy homes: you don’t have any meaningful equity and you won’t for several years. If you end up in a situation where you have to sell the house within 3-5 years, you probably end up losing money on transaction costs unless the home value has increased a ton in that time.
Agreed. There's a reason the general rule of thumb for buying is if you're planning on staying somewhere for 5+ years. Sometimes the market is really good and you can make back your money in a shorter span, but not always. Also, homes don't always appreciate, which a lot of people don't get, especially if it was purchased in a hot market and you're trying to sell in a cooler one (*cough* 2008).
Yes but what is home equity really? How is it of benefit? How do you use it? When you really think about it, does home equity even really exist?
@@totuudentorvi7781 I have always thought that. You only really realise that equity if you downsize at some point in the future. Otherwise, the cost of housing will rise across the board and so the "equity" in your property will get swallowed up because the next property you buy will have also risen in value over time. You can't "invest" in a property that you can't easily liquidate due to the fact that it's the roof over your head.
Except the equity you would have on the house you still have on cash or something else. Putting more money down doesn't create equity out of nowhere.
The real way to increase equity is getting a short mortgage. You spend way less on interests and build equity quicker.
I bought a year then met my wife who also owned a home. Ended up selling mine at a loss but at least got down to one mortgage payment.
"Why don't you learn to drive a Honda Civic first?" Ramit, you are the best!!
Thanks for your advice
Because I don’t need to drive a Honda Civic First
I have a friend who had a business and a house before he got married. They got a prenup and his fiance happily signed it. Still married 25 years later. Another friends daughter and husband got a prenup, not for money, but in case of divorce. Neither really had money at the time, but their prenup was more about if they divorce, who gets the kids (if they have any), the dog, the furniture etc. Still married 15 years later. Anyone who is "offended" by a prenup is suspect.
Makes sense. Talking about a prenup is a heavy topic and if a couple is able to discuss it openly, it is an indication that they can do well in other areas of their relationship. It's no different then talking about if they wanna have kids, how many, move to another city, will one become stay at home etc
I’m happy it worked out for them but prenuptials don’t work for everyone. I personally believe in prenups but they aren’t for every relationship/couple/marriage.
I mean, the argument can always be turned around on wanting one. You don't trust your partner?
@@MestizoMoney You know, everyone wants to trust their partner and no one gets married thinking that things will end badly. We are going to be together forever, right? However, from the percentage of divorces, it doesn't work out a lot of the time. Money often makes people act in ways that you would not think that person was capable of. Folks need to protect themselves, especially with a second marriage where there are children from other marriages involved. I would have absolutely no problem signing one.
@@bunacat1right? Just because I have car insurance doesn’t mean I don’t trust my own driving.
I love the deep dive you did on the guy that gave terrible investing advice. So many blatant and very bold scammers and hacks thanks to social media
“I love LOVE, too” and the background with lots of pink hearts 💖 💖 💖
Funny! 🤣
Loved the "in order to feel rich" commentary. Bang on my friend. Education is absolutely key to making financial decisions.
What ppl are having problems with money is money management, you can make 60k with no debt at all only housing then you can do the vacation or free guilt money. But if you are making let’s say 100k a year and you’re in debt then you can’t do the things someone else can with better money management.
Or you could be making even less, but have a property that you own, so that your housing costs are really low.
Alex Hormozi said it takes 20 hours to learn a musical instrument and another 20 hours to master it. I’d pay to see him try
When did he say that?
Dude is another con man selling his personality. RUclips started feeding me his shit and it just says nothing other than him casually hawking his products.
@@huebothedog665 on a podcast episode a few months ago, couldn’t believe it.
Good lord, I've been a guitar player for 40 years and I still wouldn't say I'm a master. 20 hours is ridiculous.
@@debbielockhart7762 why are you trusting what a random guy said on a RUclips comment 😭
1:59 That’s the most rational, logical explanation I’ve ever heard for getting a prenup 😃
Ramit: “In the unlikely event of a divorce.”
Divorce rate: “Hold my beer.”
Gotta love these financial experts who are married. If you ask any sane person if they would take on a 40% risk (divorce rate is 40%) to lose 50% of all of their money, they would tell you you’re absolutely crazy do not do that, and yet, that’s exactly what you’re doing when you get married. And for what? A better tax rate? A signed piece of paper saying you’re married?
@@YaYousef5dude so right. That data tells me stay away too much risk aha
@@andrewdixon681 😜🤣
@@YaYousef5if you think all you get from marriage is a lower tax rate you shall definitely not get married. Also, if you are thinking about divorce before you even got married, you shall not get married. And also if you think about splitting your shared wealth after marriage as loosing half, you shall, again, not get married in the first place 😉 I’m writing this as a married breadwinner with only my income in the family.
@@michaltakac673 I'll 100% not be getting married because I don't need to sign a paper and risk half of my assets and potentially years of alimony payments to love someone. That's fine if you want to take on that kind of risk or require a signed paper to love someone. It's bizarre to me.
People who earn 500k a year complaining about grocery prices is self-induced insanity.
Why? Why should anyone not have the right to complain about inflation?? We spend 3k a month in groceries. Can we afford it? Yes, but I still find it ridiculous that prices have become out of control.
Your words remind me of people like you who don't see someone who makes a good living as inspirational because they are too bitter to be inspired.
@@flacadiabla3193 You have wildly confused yourself if you you believe I think people who earn that much money have it good because I'm bitter. People who earn that and manage to make themselves worried sick about money are the ones being too bitter to enjoy what they've earned. Really just reinforcing my original point.
That you manage to spend 3k a month on groceries is quite the feat, though. Probably look into how you manage to do that.
Flaca
I know several people that make six figures and some that makes millions a year. I DONT see them as inspirational. A few of them are inspiring sure but not really considering I went to school with them and know I’m just as smart.
Look a lot of people that borrow 1.6 million at age 23 can do it cause they have rich family members. Or others get into real estate doing deals by having rich friends back them while the poor kid does the leg work. It’s not super inspiring but just another job.
Like wake TFU. Most jobs that pay six figures or up pay well because of the monetary system we have today. If you can borrow new dollars into existence you’re rich. You’re rewarded way more than others working in other industries. If gold was still money today banking would look less sexy. Banking and making tons of Money is great cause the money supply is elastic.
The federal reserve is privatelyowned paying a 6%dividend to shareholders.
Also how the hell do you spend 3000 on groceries? I could eat out every single day for a month and not spend $3000. Then again I did live in the Philippines among real poor people years ago and now grow a lot of my own food.
But the other comment is right. Sure you’re right that rich people can complain just like anyone else. But it’s also true that if you’re rich inflation affects you less end of story. If you’re paying 3000 on food a month that’s like 36000 a year on food which is what some farm workers make in an entire year.
Like rich people also have assets that benefit from inflation or money printing technically.
The U.S. declared bankruptcy in 1971 and went off the gold standard. So we’ve had Fiat ever since. But what happened after 2020? A crap ton of new currency was created by the government and federal reserve and banks. Banks were told they could lend with zero reserves basically creating new currency out of nothing.
Milton Friedman said inflation is always and everywhere a monetary phenomenon. He’s partly wrong cause trade shortages or sanctions etc and government banning or regulations dramatically affect prices on something’s. But ya when ya spend 7 trillion new dollars food costs are going to go up. Workers growing food for instance need to earn more to afford to live or pay rent. It’s nuts how the federal reserve owns 2.7 trillion in mortgages propping up real estate. Like wtf is a private central bank boosting asset prices? The private central bank was setup to be a buyer of last resort to essentially prevent Great Depressions not create massive bubbles which led to great depressions and then they have to do bigger bailouts once bubbles pop leading to bigger bubbles.
@koltoncrane3099
To answer your question, we actually do not enjoy eating out. We purchase high-quality food from farmers in support and wild seafood. We understand most families can't afford the kinds of foods we purchase for our family, yet despite our comforts, there is always someone who has more than we do, but it doesn't mean we feel bitterness that others have more. We are inspired by the success and hard work of others. We learn from others success-which is why all of us clicked on this video. We may not have suffered financially in life, but we think of our kids' future. People who have little don't get to monopolize on complaints. Quit hating on the rich.
Rich is sooo relative. I make under 100kbut have saved most of my adult life and have over 1million in 401K and investments. No mortgage or car payments. So, for me under 100k annual income is rich
Exactly, wealth is a ratio: income/outcome
It also depends on
your families situation. Personally me and my wife are doing great and just started our careers. But our parents are immigrants and sacrificed a lot for us and have close to zero in retirement. At best in about another 5 years they can maybe have their mortgages paid off and paid off cars.
@@hz1056
That's really good man. Way above most people for sure!
What directions have you taken your wealth? How would you describe the value 100k brings you?
Im currently struggling while making near 100k in canada with a mortgage and a sizeable chunk of debt being paid off monthly through a government program at 0% interest over the next 4 years. Technically no car payment but the cost exists in those payments towards debt. Not a lot of money spent in my house either with no decor and just old furniture that came with the place or free/cheap from family. I live in a home, while its 70 years old and quite modest, just an average bungalo.
Remember: Its about time in the stock market, not timing the stock market.
Don't call it a prenup. It is a financial plan. It can start out with talking about how things are managed during the marriage and then move to pre-existing assets.
But you still have this before the marriage. Thus PRE nuptials
I like that! ❤
we usually refer to it as "Before-We-Got-Married-Asset Management and Plan"
Prenap is not only for pre marital assets
You're single. 😂
That should be your next book: what is a prenup? How to discuss it with your partner. Remit's take on life.
I think some people don't understand that a prenup can actually protect relationships. If a divorce happens, and the guy loses half his business he built up himself, then sometimes not only could it ruin the business, but it could affect the overall income of what the business generated. Better communication could possibly be coming to a conclusion that if the relationship doesnt work out, to sign an agreement early on that the business owner could support the other person of some agreement/settlement. That would be how I would imagine it.
@@starlightwaters1 yeah im in the chapter about prenups in his book right now. Im purposely single forever so it doesnt pertain to me but I love psychology and money psych. he makes it really clear about why people don't understand its to protect relationships. he also said 98% or so of the population don't need them because people usually have the same amount of wealth when they start dating. its mainly for wealthy folks who had wealth previously before they met their partner
Ramit has an interview done by Tim Ferris (look for it here on RUclips) where they talked a lot of prenups and his experience! It's amazing!!!
I'd buy this!
@@starlightwaters1 why you're mentioning only the guy? do women not have businesses and assets? I personally own a house that i want to protect in the unfortunate case of divorce
Video idea: your bad financial takes you use to have lol
LOL this is a great idea. I used to tell people spending money on 1-hour photo development was a "waste of money" and that we needed to "keep a budget." Wrong on both.
@@ramitsethicommenting so that the algorithm tells me when this video is out! lol
One more time in English?
@ramitsethi how did you understand what was said?
@tf4606 you can read it like this .." your bad financial take* you used* to have "
Can you please make a podcast on how to teach kids finance, when to start, what to start with and how to advance their knowledge! Thanks
I’m commenting to follow for a response to your post. A video or a book specifically for teenagers. I have “I will teach you to be rich” and it’s a great book but I’m not sure that my teenager would read it. It would have to be a “fun” or an interactive book somehow.
@@jenya7092 i told my under 18kids that i would add 50% to whatever they save. Take it out, you pay me back my 50%. They learn really quick.
My kids are tired of hearing me talk about finances. I just start with something simple and not a lot all at once. I have always talked to my kids about credit cards and explain how they work in ways they can understand.
I would say you remind me of a cool guy who was on the tim ferris show more than once. But I realized you are this exact guy. Don't know why I didn't search for your youtube channel before but I'm glad I found it. Cheers from Brazil!
>just invest in the top 10 of the S&P500 bro.
>Lets take a quick squizz at the top 10 from the 80s
>Oh.......
😂
Nvidia has paid me well so far. Just diversify I would say
@@brock5946 that's great, however it's impossible to know whether or not Nvidia will continue to be a great buy over the next 10, 20, 30 years.
My original post points this out. Pretty much all of the top 10 S&P500 companies from the 80s are no longer in the top 10 or have become low performers
Why take such a massive risk when you can beat 90% of investors and get solid performance, at much less risk?
It's not as bad as you think. The top 10 of the S&P 500 in 1994 have returned 6.8% over the past 30 years, compared to the 8.7% returned by the S&P 500. Still a difference of $50k on a $10k investment in 1994 ($120k vs $70k), but you still would have had pretty strong returns.
@@brock5946At the rate world governments are investing in AI as a weapon, NVIDIA is going to be a MONSTER in the stock field. Invest now, and invest steadily, because when it explodes, it's gonna be full on nuclear lol
So thankful for people like you Ramit, who are there to knock silly myths out the water. You've helped me SO MUCH, SO MUCH. and of course that so called "generational wealth tik toker" is selling a course/service lmao because even he cannot outperform the S&P...not even close. He's a wannabe Dan Lok..scammers. I FEEL rich already with a household income of £160k in London, UK.
About time someone calls out all these financial guru click bait idiots
I was thinking the same thing! I'm tired of business gurus that openly say they have a horrible relationship with their family/parents/dad, don't have kids, don't want kids, and talk about how simple it is to be a billionaire. All you need to do is sell something that someone wants. Well thanks, Captain Obvious!
And all the gurus seem to do is talk in circles reciting an essay they "wrote" by compiling prolific quotes.... You know I read, And as so and so said. It made me think of this quote that I heard. And therefore, it's so simple.
Yes! I read your e-book through my library for free!
Great! I love public libraries. Glad you got my book there
I borrowed the audiobook from the library and I loved it! Now I have my own physical copy (guild free spending) and I am reading it again. This book belongs on my bookshelf! 🥰
That was great, more of these quick take reaction videos please. I’m curious what you think of The Budgetnista (I like her, I think you may have recommended her?) and “Your Rich BFF”. (Maybe also Graham Stephan, Romain Faure, Caleb Hammer)
I'm from Norway, where the prenup concept of everything you had going into a marriage is yours going out of it too is written into the marriage laws.
You still need to have kept the asset inact though. A bank account that was at 100k before marriage, but was drained during the marriage will only let you keep the lowest amount it ever was at, since the money used to build it up again during the marriage would have been both of your money.
Well yeah, it makes sense. If you had 3 kids or bought a car and crashed it...then divorce, it would be ridiculous to expect to still get a 100 k in the account.
In the unlikely event of a water landing, .01% In the unlikely event of a divorce. 50%. Thats why a prenup.
I love your agro commentary “why don’t you learn to drive a fricken honda” 😂 every time you take on that aurora I get a kick out of it
A prenup doesn’t have to be I get 100% you get 0%. You want your partner to know that they won’t be out on the street with nothing if you divorce. Also someone asking for the prenup should offer to pay for a lawyer for their spouse so they’re equally represented. If you don’t want them to have their own legal advice and you want them to get 0%, then you shouldn’t be marrying that person.
If you aren't careful to ensure the split is equitable in your prenup, you risk getting parts of the contract nullified (throwing out the whole prenup is pretty rare). If you are married to someone who is a stay at home parent and try to enforce a prenup without sufficient spousal support, that is very unlikely to hold up in court.
Exactly!!
@@fml5910 don’t get married then.
I need a $100,000 huge truck so I can bring home one bag of lunch from the Home Depot that is a mile away once or twice a decade
lmao
If you need to pick up lunch then you definitely need a McLaren!!
life is not just about surviving but also enjoying things you want and desire (if you can afford them)
@@ace9848 and that is where the performance sedans/hot hatches come in
Never been this early; excited to see this new format!
Regarding Prenups - the government already has one in place, so if you don’t it’s the state that decides how all that works
I am living in San Jose, CA. All single family homes in San Jose are over $1M, but they all are very old. Will spend a lot of $ for repair. If I don’t have $1M cash, I never want to think about buying a house. I hate debt.
Why do you have 2 last names
@@johnle231 My first name is Le.
@@LeNguyen-im8dm is Le a common first Vietnamese name? I think you’re the first I seen with Le as a first name
@@johnle231 Le is not common first name. I was born and grew up in Viet Nam for ~23 years. I only met one female and one male who had first name Le at my schools while living in VN. Have been living in the U.S for 15 years, I haven’t met anyone who has first name Le. My dad named me as Le since I was born.
@@LeNguyen-im8dm
Ah ok thank you. I wasn’t sure since I’m Americanized Vietnamese born here in the states haha..
Did you move straight to San Jose from Vietnam?
8:06 Uh... How did this guy know EXACTLY how much is my checking account?... Fvck 🤣
The last example and your feedback Ramit was very helpful! Thank you.
I love when you “Act frustrated” about what people say 😂 I share those same “what are you doing” moments 😂
1 thing about owning is your costs should never go up. I bought 11 years ago. I could not afford rent or a mortgage in the city if I hadn’t purchased back then.
Haha… Ramit said “read Ch 6…” I went to bookshelf and turned to Ch 6. Thx, Ramit!
"Unlikely event you get a divorce." It's actually quite likely and it's not romantic to think like this. Since divorce rates are over 50%, it's actually more likely to fail. A prenup can actually weed out gold diggers - they would never sign one and talk about how this is supposed to be love and other manipulative tactics.
You should dig beneath that 50% number. It's considerably lower once you remove second marriages and the divorce rate has been falling for decades. It's quite interesting.
I'm so glad you point out that wealth is a relative term. My old boss used to introduce his sister as the wealthier, better looking, more successful sibling. She had close to $100m more than he did. Both were billionaires. 😅
I think people FEEL successful or "rich enough " when they can keep up with the lifestyle of their friends and family. One of my most vivid money memories is how humiliated my father was when my mom told his brother (my uncle) we couldn't afford to go skiing in Aspen with him.
I love catching his videos freshly updated.
My wife and I are not Rich but we signed a prenup. We are both ambitious and appreciate a certain level of independence so we wanted to keep certain assets and accounts separate. We also agree anything we build together should be split evenly and anything we grow separately should be the sole property of the builder. Everyone signs a prenuptial agreement when they get married. It's either the terms you want or the default law of your state. We decided we wanted to get married under our own terms.
Yes! Paying new truck prices is nuts! They lose resell value quickly! I paid 40K for my new truck 20years. Was able to get a much nicer truck this year for 45K and it’s only 4 years old. It was a private seller and had a ton of bells and whistles that would be 100K new. Paid cash, so he was willing to sell quickly. FYI Never buy used without an inspection. It’s worth every dollar!
I bought off lease, with full service/warranty record. Saved about 35%-45%.
16:10
Who buys a $200k house with only 3% down? I'm sorry but if you can't even put down the $40k to avoid PMI and minimize the cost of having a 6.25% interest rate then you shouldn't be buying a house!
Homegirl moved straight from generational wealth to ancestral wealth
There was a canadian show called till debt do us part. The hosts rule was home maintenance/ upgrade costs should be budgeted at 1-4% annually of the homes value. New homes leaning to the 1 and older to the 4.
My home is work 600k 4 years ago we had to replace our hvac that was 14000 and fits well inside that 1-4% you might go 5 years without a major repair but then sink 50k into a new kitchen and bathroom well that will probably be the 5 years worth of 4%
YUP!
Same here. Also had roof replacement 4yrs earlier. Almost got thru the year with low cost until washer/dryer needed to be replaced.
Ohhh i just love love love this video @Ramit!!! It's Edutainment as its best!!
I love the question about how much you need to be rich and people made it all about income. I love the philosophy that you CAN live your Rich Life with a "regular" income if you can manage to hit the % on fixed costs, etc. Ramit recommends.
Thank you Ramit! Please keep sharing more videos like this, since they help us open our minds and have perspectives on different financial topics. At the end each one of us is going to make their choices!
I wish to incorporate more of the psychological aspects to business’s finances! Any idea?? 🙏
3:39 we grew up on the Pokémon theme song and you're sounding like Team Rocket right now
"Contracts are written in love and used in war"... I got that from a Patrick Boyle video and I can't remember who he attributed it to, but I think about that statement a lot.
15:47 On the subject of what a home costs, don’t let people sell you on tax deductible interest. First, you’re paying a dollar to save 20 cents. Second, you may not even get that 20 cents.
Mortgage interest is an itemized deduction, and you only benefit to the extent your itemized deductions (mortgage interest, donations, medical expenses, a few other things) _exceed_ the standard deduction ($15K for singles, $30K for couples). Our friend here with a $200K mortgage at 6.25% interest may not see any tax benefit.
Love your podcast and I recently bought your book on Amazon. I am loving it.
Glad you like it!
Everyone should run the numbers on a house payment for THEIR finances and their LONG-TERM needs!
Houses definitely come with much more costs than the mortgage, BUT there are no current laws to protect renters from greedy landlords, and everyone does not have the salary to easily absorb an annual (in some areas, random) 7-15% increases on their rent, like a multi-millionaire.
Many places are rent-controlled?
@animalstylefry There are some housing options that are rent-controlled, but those are not the norm, and in areas where it may be more common, the properties are being turned into "market rate" housing whenever the owner has the very first opportunity.
@@animalstylefryLOL! Not in Seattle.
There are NO rent control laws in Washington.
And some areas outside of US have to renegotiate mortgage rates every 3-5yrs. Currently some mortgage payments 40% higher than original.
@@mmbarbon2955 True. I was stunned when I heard of that practice. Insanity.
Love this! Please remember to give credit to the original posters of the video examples you use.
Since when has divorce been a 'rare' event? Especially for Americans.
Think he was being lowkey sarcastic for those who would get it while also suggesting that you shouldn't get married while already planning to expect a divorce.
Patrick Bett-David says a prenup should break out: my money, your money & our money.......puts it into buckets and takes out the emotions!
Never had individual accounts, and glad that way. Makes things mine/yours (assets/responsiblity/etc) from the start. Due to health decline, my wife does 95% of stuff around the house, so how would that work if we did everything 50/50
Why ramit is great is he constantly speaks about the emotional factor with money.
Investing is not an exact science like people assume. Would highly recommend reading psychology of money. Similar to ramits advice
Rx 2 to Prenup-refusing lady:
I think Rameet brought up some valid points, but I think the discussion about prenups and clear deliniation of assets should have happened long before proposing to the women.
- If you notice that the relationship is getting serious and likely headed towards the Alter, and if a Prenup is a redline for you
- Then you should start discussing it (and potentially sign a preliminary one) prior to you ever proposing to her.
- It would prevent the two of you from being at an impasse after she has already said Yes to you and it would keep her from claiming that she only agreed to it because she was put at risk of embarrassment, if she didn't sign one.
100% Talk before the engagement
I wouldn’t consider any income to be making someone rich. You’d feel rich if your income easily covers all your expenses and spending. If the income stopped you’d still be broke in 2 months.
Many people who have high income jobs lifestyle inflate to where they can't live their same lifestyle without without those jobs. Say you randomly get laid off (which happens more and more these days even to skilled people) well guess what? You are screwed until you fix your spending habits. A huge chunk of Americans who are millionaires live like they are hundred millionaires and then some of those hundred millionaires act like they are billionaires. It's a hedonistic treadmill that never ends.
Sign a prenup, but the prenup must encompass the price of domestic labor.
how is "utilities" a phantom cost of home ownership when you would incur those if you were renting as well?
It’s saying I can afford that mortgage or rent, but then you’re not calculating the $200/month or whatever in addition to that
Lots of rents include those. I think it was a bad example but his point is that home ownership has a lot of additional costs that people do not factor when they decide to buy a home.
Many rentals have utilities included.
I live in a rental appartment and our electricity is not included (every appartment in the building is metered). But our water is include, and so is the heat because we have those olds school radiators with hot water...
In the summer electricity bill is about $100-150/month (depending on how much we have to run the ACs), the rest of the yeat it's about $75.
If we owned..we owned anhouse we would be paying for the heat and the water too not just electric.
If we lived in a condo building, not sure how that works.. but there's the maintenance fees on top of the mortgage which I believe include the utilities? Not sure.
@@charles_cody This. A lot of people don’t consider the increased utility cost that comes with a large home or a house with a pool, etc.
I own a 1br condo that is about the same size as the apartment I previously rented, so I don’t really consider my utilities a phantom cost because they are the same as I would pay renting.
But I know many people who own SFHs and their utility bills are astronomically more than mine.
@@charles_cody 100x this. Utilities are a phantom cost because you assume that they're going to be comparable to renting. In reality, they're much, much more expensive.
In some states, premarital property remains the property of the individual bringing it to the marriage in the case of a divorce. It’s called the Communjty Property Approach!
People don't realize how rich they are compared to other countries. I live a rich life compared to what I had in my home country. Usa is still the best country in the world. All the people living here should feel proud and happy to live in this country.
On the last video Ramit reacted to, you still generally pay utilities for properties that you rent. And we put 30% down on our house. No PMI, better interest rate, lower monthly payment to invest the difference. We ended up with a mortgage and HOA payment that was similar to what we were paying for in rent at the time which got locked in. The rents in our high COL area have since raised 33%+ while our house has also increased 20% in overall value. In some situations buying is better for wealth building but definitely be sure to consider the phantom costs and if you plan on keeping the house at least 3-5 years before buying.
I agree that what you bring in the house is for both, but if it ends then you take what you brought with you away.
Thank you for your videos! Do you think you could make a video on how to budget as a teenage with no real fixed costs at the moment.
Have learnt so much from your content, one thing I do disagree with though is that having your money double every year is a safe investment....when inflation is high (I'm talking M2 money supply, not CPI Inflation, which is a botched number), doubling you money every 7-10 years isn't enough to keep up with the increase in M2, and this will only get worse as debt to GDP grows......
❤ this style of video explaining why getting financial advice from random uncredentialed people is dangerous to your financial well-being.
I have a problem where I see that I'm making much more than the median household income in my city, but I absolutely don't feel like I'm getting ahead, even though I am. The solution is understanding that, over time, I'll see the difference more and more.
It can be tough if you are middle class and being responsible with your money because you are likely sacrificing significantly compared to your peers. Two households making $125k/yr with one maxing out two 401ks and the other only investing enough for the company match have over a 2k difference in spending money each month. While one household can probably retire a decade earlier than the other, that $2k per year can pay for much better vacations, date nights, hobbies, housing, and cars.
Are they really paying for it, or is it on the credit card ?
Feeling rich to me:
1. Filling both of our commuter cars every week without worrying about the costs.
2. Shopping for groceries for the week without having to check the bank account.
3. Having enough money in the bank that we can pay the mortgage 1-2 weeks early.
4. All fixed monthly costs on autopay without worrying about overdraft.
5. 6 months of living expenses in a HYSA.
6. Taking the 401k match at my job.
The biggest thing about rich in the Bay Area is it boils down to wether you own your house or not, cause you may have made a lot of bad decisions over the years financially but you entered the market in a crappier city in the Bay at the right time in the 1980s or 1990s and your property now is worth over a million, so on paper you seem rich.
For me to FEEL rich I’d have to have enough money to spend 75% of my current income without needing to work. Being rich to me is freedom of choice. If I choose to do nothing and I’m still alright financially. That’s when I’d feel rich.
I relaxed when you started swearing 😂😂😂
This awesome. Love watching these. I think you took Alex Hormozi out of context though. He runs a PE shop. He was talking about multi-millions of dollars. FDIC insurance isn't going to cover that. Better to trade into bonds to get the extra amount of interest and more security.
I don't think Alex Hormozi's audience are Millionaires, so Ramit was clarifying how to think about it for regular people!!
Don’t ever buy a house where you owe an HOA. They suck and never ever buy a house where the HOA is that high. She should have actually been paying 1750 ish without HOA. Also she is right. Houses cost more. The thing is that times out. 10 years down the road or sometimes less you will be paying less even with the hidden cost because of inflation. I bought mine during the pandemic and because of how high the inflation went, I’m near dead even with renting even including everything she mentioned
"Phantom costs" owning a house. Well, of course! In renting, do you believe the landlord simply takes care of maintenance, taxes... etc out of the goodness of his/her heart? It's all baked into the rent (plus a profit). If the landlord's costs go up, then rent increases. I completely agree with assessing the cost of ownership, prior to purchasing. But, I feel that owning is a good thing, if you have done your financial homework.
The landlord can't simply pass along their costs. They can charge what the market will bear. Sometimes that generates a profit, other times not, and often the landlord doesn't even know his/her own costs.
Just looked up the median income where I live and it’s only $27k. This trips me out cuz I thought I was just doing fine and my income is $145k. He’s right, I guess you never do feel “rich”
The income in our area has dropped recently. Lots of original owners from 25yrs ago now retired!
"unlikely divorce" LMAO
understanding what our individual relationship / experince to wealth is
Such a great video - thanks Ramit
Just had an image of you in a tutu. lol!
“In the unlikely event of divorce…”. 🤣🤣🤣🤣🤣
The young woman who paid a mortgage of $1100 and after expenses (phantom costs) was paying $2030 ( or so). But she WAS covering a big unexpected repair in her Home Warranty of $35/mo. That’s cheap! Good for her.
Your input regarding a prenup is very insightful. 10:29
The mortgage story I never thought about before, but it makes so much sense wow
man I like your videos so far, so genune, keep this path 👍. Is it possible to get audio book?
I love this content- so normal and common sense! That being said- you’ve said “investments” should be from take home pay but 401(k) is pre tax- can you please discuss a CSP model with that in mind (or point to a video that includes such a revised model)?
The phantom costs of a mortgage are usually beat out by equity gained over the years
yes and the security of not having to move or be at the mercy of others. Though having said that you are at the mercy of a bank if you have a bad mortgage.
Different story depending on location/timing. The owner of my daughters house has seen equity drop much greater than rent collected.
swear it off ramit ! i enjoyed this video
Reacting to the Prenup-refusing lady:
Assuming the video is not just a skit, HE SHOULD NEVER MARRY HER.
- She is making it clear that she wants absolute rights to all his assets (w/out him having any rights to her's), regardless of how and when he acquired them.
- Her attitude about the prenup suggests that she is in the relationship partly (or fully) due to money.
- If she ever relents and signs one, she could use this video as evidence that she was coerced and pressured into signing it against her will.
Ultimately, that kind of an argument is not something you want to win and there are other women who will be willing to sign a reasonable prenup without causing such headaches.
💯
his attitude is not the best either I would break up with a guy if he talked to me like that and I DON'T MIND THE PREUP because I also have assets I want to protect but his delivery.....horrible. he's gonna be a horrible husband.
Also i don't think she understand that prenup is more about protecting assets before marriage not during the marriage I also didn't know that until after I researched about it our education system is not the best.
money is important in relationship and as a woman if they're planning on having children the woman will likely go on maternity leave and stay with a child maybe even for a couple of years so she's gonna take a break from her career and the idea that she's sacrificing her career for her to get nothing if the husband wants a divorce is terrifying. Again I wouldn't be with him his attitude is not responsible husband he said you came with nothing undervaluing her contribution to the family they're gonna start...from the beginning of the relationship. biggest red flag.
@@nanomiaShe was talking like a complete gold digger. If she wasn't one, she wouldn't take that arritude. She was awful.
Prenup Is for both partners, to come to some agreement. I don't understand the heated emotions in there, she don't want to sighn something she has discusion about before?
@@barborakopalova4583 I'm assuming he probably never gave her a heads-up early in their relationship that if their relationship progresses to engagement and marriage, then he'll expect that they negotiate and sign a prenuptial agreement.
This is a good video very informative thanks
Great video. Bought your book on Kindle just now :)
That is also what makes condos interesting: less "phantom" costs overall.
Lol, yeah, they're bundled neatly into the ever-increasing monthly dues you pay ON TOP of the mortgage.
Actual costs of home ownership matter. Utilities don’t typically belong in a comparison as they apply with most rentals as well. Other costs are usually just hidden in a rental price that increases each year.
Of course with renting you are just gambling all the time. Landlords and connected neighbors can really make or break a rental and you won’t know till you are locked into a lease. Landlords and neighbors will definitely constantly change in high density housing situations. You can move, sure, but that isn’t exactly cheap. Especially as you get into larger properties and get more stuff.
When I got my house one of the most freeing feelings I had was knowing I could crank up some music and no one was around that would care. It took a couple of days to realize my new freedoms after years of repression.
😂14:58 You do know this guy is Alex Hormozi, and he's worth $ 1 billion! Lololol
Alex Hormozi is not worth $1 billion
He's also a nihilist...
I love your show, and get a lot out of it, but I do live outside of the US. @Ramit, I'd love to see some shows with folks elsewhere - France, UK, Australia, Malaysia... perhaps sharing insights on money culture, expectations, habits and challenges. I feel like that would give some new ideas on the choices we make.
People who don’t sign a prenup should realise their partner is deliberately choosing for them while having the financial freedom to leave them without thinking about it.
Another great video!