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$100,000 Salary = BROKE (here's why)
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- čas přidán 5. 05. 2019
- Author of "From Side Hustle To Main Hustle To Millionaire" (Available at B&N, Amazon, Library)
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Honestly 100,000 is a great salary....the problem is most people raise their standard of living when they make more money rather than maintaining their previous standard of living and investing the new money they are now making to retire sooner.
This is hitting the nail on the head more so than anything else said here.
This was for the average of all things, not above average. I do think $500 car payment is extreme, but the housing cost was quite low, so it probably balances to about average. He was pointing out that you couldn't even raise your standard of living if you wanted to on $100,000 salary. I agree. I've lived it. I've always been very frugal and a saver, but it is so hard to live off only $100k per year. It's essentially paycheck to paycheck if you want to live with dignity as a real adult and not have roommates and such.
Exactly this. I was making about $45k and got a new job where I'm making about 88k before 401k matches and I am living close to the same lifestyle but am able to put 8% into retirement plus another 12k into investing and another 18k towards saving for a house downpayment per year. And that doesn't even factor in my wife's income. I did buy a used car last year though but paid cash for it to avoid payments.
@@InfiniteQuest86 Only in HCOL areas. It's fairly easy to survive on 100k even in MCOL areas and still look like your ballin.
That’s the plan you want a better life if you make more money I’m not driving a $200 car making 200,000 a year so you buy a $50,000 car or 2 and so on.
Being able to have a $100 date night every week (or a luxurious date night once a month), a $3k vacation, and still being able to have both savings and retirement contribution is not "broke".
If earning $100,000 is broke, I've been living under a bridge all my life. 😅😂😂
$100,000=broke means poor management for me
True but you only live once and I have a Mercedes and own a home.
@@poke-holo-sports what happens if you loose your job or have to move to a job with lower paying how will you pay off your mortgages.
Mortgages are traps I have been in the 100+ salary range for past 3 years and still did not buy a car. I don’t rent an expensive apartment it brought down my expenses by 20-30% instead I invested the money and it’s growing and will buy my car when I feel I have enough.
How I know it, when I have enough money to sustain my current lifestyle for 5 years without any job that’s when I will start buying luxury items.
@@shoumikchakraborty2529 I wouldn't call buying a home a luxury item and that is actually more of a investment than renting a apartment. It's actually cheaper than renting. Some form of income stability is important to plan out life to a certain degree. If you have a emergency fund where you could got 6 months to 1 year without income that's plenty 5years is excessive and means you could of been doing something better with that money like putting it into a rother ira or your 401k to grow.
@@dennisp8520 for me house is a liability, not Luxury for example I have a house, and I have to pay property tax and maintenance for the house so money is moving out if I loose my job in the pandemic I can’t pay the mortgage if it’s a big house and huge loan it’s hard for me to meet the end.
Buying an expensive car is luxury.
I am not in US, But I get your point.
I feel 401K forces u to give out a huge percentage to the investment funds as brokerage.
For example you invest 1000$ today if you know the power of compounding after 30 years you end up getting 28 times your investment if you are putting it all in 401K and other investment firms, but if you do it correctly you will end up 39 times of the original money.
What I am trying to say is to grow wealth/assets and not liabilities
Turly speaking it took some time for me to understand all this concepts for the first time.
When you have money it’s hard to resist the temptations.
@@dennisp8520 A house is a liability until it is fully paid. You own 0% of it until it is 100% paid. Not only that but anything repairs needed on the house adds liability on top of that liability. Also with the falling birthrate in the western world houses will not continue to gain value long term and it may fall flat or plunge as population stays the same or decreases. Not to mention the astronomical interest amount you will pay whether you have a 15yr or 30yr mortgage. This is why people rent
Give me 100k and watch me live off of 40K
Simone Miller for real!!!!!!
lo, watch me live off 15k
Give me 100k and watch me live off of 4k
I don’t believe youTimofei Mihhailo
Dj 912 Sent that is what I am doing right now :) not in America of course. But in small city in Estonia it is quite simple) people couple years back lived here for 300 a month, that was minimal salary) minimum living price here is 160, means that if you do less that that, then government will help you with money.
I did even manage to visit 11 countries last year with only 4K spending through whole year ahahah I traveled like 135 days lol
So true, it's not about how much you make, but how much you $$$$$$$ keep .........
DAVID Y yeah man and 3000 on vacations is way too much. In Southeast Asia, flight tickets are about $60 and good quality hostels are like $11 a night ! It’s all about leveraging hahahah
Rich dad poor dad
Get rid of the car note, Get a regular car and pay in cash
Cash is king
Making 100k doesn't make you wealthy, but it's about saving and investing that will.
If you’re broke living on 6 figures, you need to do some SERIOUS soul-searching.
Facts 😂
I remember this concept from Rich Dad, Poor Dad. Higher incomes often lead to higher expenses... for a lot of people the ratio doesn't change and they can never become financially free. Awesome video, you nailed it!
Brandon Beavis Investing completely agree. We don’t have an earnings issue as much as We have a spending issue.
@@matthewclevenger197 Spending issue is what I'm trying to tell people about now. They just dont listen....
An education system should teach that....but that would never 🚫 be “allowed” “the system” requires financially uneducated debt slaves, anyone else is nearly a freak/rebel....😉
Man. It truly is sad. Especially the rising debt we are seeing for those in retirement. That concept is unfathomable to me as well. Fixed income spending above that in retirement is pushing yourself into the corner
Lol the taxes for 100k salary is basically my current wage
Big oof
I am just hitting this type of income and literally every time I look at my deductions (I live in Germany, making Euros and we have a LOT of deductions) I think "wow, I used to make what they deduct". Its bitter sweet... Hang in there. I am 45 yrs old. Took me some time to get here.
@@QueenD75172 thanks for the encouragement, and congratulations on your success!
Cause you live in area that doesn't tax's as hard. New york as a high tax rate. Taxes florida and other areas tax much less. This guy is going by new york cost of living lol
Taxes for your salary is more than my wage ($5k in middle east)
My base salary is 6k away from 100. After my 10% 401k contribution and other PPO, insurance deductions my take home is 75k pre taxes. You factor taxes into the mix and 100k isn’t what I thought it would be when I was earning 40k. You can be frugal all you want but the reality hits home when 100k gets chopped down to 62k-65k take home.
62k take home is a good salary unless you're living in an expensive town.
I feel like we've been programmed to think $100k makes one rich. In reality, it's "just" 2.5 times the median personal income. It's comfortable but certainly not rich! Those folks with the $200k, $300k, $1M incomes are the ones living like kings
@@adriannathegreat9890 I’m in New Jersey
Let’s be real, it’s the taxes that really eat us alive at this income level 😭 $25k in taxes is literally a car lol
401k is retirement money, so you are already saving up for retirement, and then you have to do personal savings if you hav any further goals, i guess that's a good catch?
I’m seriously perplexed:
Left 740$
Savings 400$
Dating 400$
Vacation 250$
---------
Total 1790$ a month...21,480$ a year...
Is it that bad....? Welcome to the real world.
Depends on where you live. $100,000 is a comfortable middle class life in Alabama for a family of 3. My brother lives in California and 100k is enough for 1 person, not a family.
RSAS LLC - House Flipping San Francisco, CA $100K is hard for 1 person
Average house is 4K month mortgage
@@obiclone, can you share what the income taxes, statutory deductions, and, hence, net pay would be on U.S.$100,000 per year personal income in California versus Alabama versus elsewhere?
RSAS LLC, can you share what the income taxes, statutory deductions, and, hence, net pay would be on U.S.$100,000 per year personal income in California versus Alabama versus elsewhere?
Brent Shuffler for instance in San Francisco, real estate is so expensive that so very few people can afford even the
downpayment to buy a house, so most people rent.
When you rent, you do not get a deduction for the rent.
Renting a house will run you about $4,000 a month.
Gas, is also around $5 per gallon in San Francisco.
So the monthly on gas is more like $500 for me.
Also, California state tax, which is in addition to the federal tax is about 10%.
The rest of the numbers are basically the same everywhere else.
Traffic is also far worse here.
But the other issue is that here you also have to pay to park your car everywhere you go.
The meters will cost you 25 cents just for 5 minutes of parking.
$3 per hour.
That’s a conservative $200 a month for parking fees.
So, in SF you need to add an additional $3,300 per month in expenses to what is in the chart of this video.
But, because of the 10% state tax, the take-home income on $100,000 per year is $5116 per month rather than the $5,950 in the video here.
Here in SF, unless you live with family or have a room-mate shared rental situation.
100K per year is worse than broke.
You basically need about $150K to break even.
In a place like Alábama you wouldn’t have that additional $3,300 per month in expenses.
Also, real estate is much lower, so anyone making $100,000 a year will buy a house, and get the interest rate deductions on the home.
(Or probably be able to pay the house off early and not even have a mortgage payment at all)
@@brentshuffler1234 Sorry I can't. I'm a landlord and deduct everything so my example would be very different from the typical W-2 employee.
Next video: "A million dollars a year = broke (here is how)(gone sexual)"
As someone who turned down a corporate accounting position for running a small business. This calculation is COMPLETELY true. I help small business owners run their auto shops and construction companies making more than doctors and lawyers. Keep it up Ryan!
Daniel Iles What do you do exactly to help auto shops and construction companies for instance Dan?
Like some example of your duties...that brings in your revenue
You say avg this and avg that, but you use tax rates from NYC?
No, its New York State, not New York City. Plus, I found the website he used. smartasset.com
@@randyc9356 It would've been a lot worse for NYC. Given that renting a studio in a more-less nice area starts at $2200. If your job doesnt pay health and you have a car or a motorcycle with ridiculous insurance in the city. You're screwed.
It honestly depends where you live 100k is tons in Montana, it’s nothing in Manhattan.
It doesn’t depend where you live because jobs in Montana won’t pay you as well as jobs in California. Your salary is dictated by market wage.
This is a cliche thing to say but it’s faulty because the high paying jobs take into account at least your taxe rate when they dictate your salary.
Oh man I'm only making 40k a year. At least I have no debts, don't pay rent, live with my parents and save and invest everything.
Stay debt free and live with your parents as long as you can and stockpile cash! Smart
Drew V lmao what that’s not always the best option I’m going to med school to become a pharmacist ya I’m going in student debt but i will be able to pay it off in 2 years since my profession makes about 146k median salary .
Remember to take care of your parents and don’t leave them behind when your a millionaire
@@djrajo9014 Medical school is to become a doctor. I believe you are referring to pharmacy school.
Andrew being a pharmacist is a doctor and yes you are right but technically it’s basically the same thing .
you need 500 on groceries an 400 for date night? can you feed me and can we go on a date?
If you eat healthy $400 a month is enough. Unhealthy food will probably run you $200 a month. I go into hibernation during winter months, so that cuts out the $400 dating costs.
Bluereason Remember?, he said he’s in NY.
Who dates like this? I rarely go on dates and even still I am not spending that much money
And $3000 for a “worth while vacation” haha New Yorkers am I right
New york is a lot, his reaching with 100k trust me.
Awesome video. However you left out the biggest expense......kids!!!
This was an example for a single person....wow!
That will be an extra $200k lol
Yea child support....
Chris Wood kids!? Ouch.
@Steven Roy I would usually devote my savings to cover those kind of costs like home maintenance and vehicle repairs and use whats left after puting half in savings to buy furniture, computers, a new pet, ect. Oh and for regular pet expensives I would set a budget of 100-ish per month for food and toys. Assuming that I have one cat or something
FRUGAL LIFE that's the answer!!! Last year I made 120K and now I have debts!! Cos I spent more in crap that I don't need in order to impress people I hate..EXCELENT CLASS AS ALWAYS... I'M ALWAYS WAITING FOR YOUR NEXT VIDEO...Blessings
Love the honesty, only way is up
Don’t listen to this guy 100k is a great salary. Don’t you already cable in this plan so don’t sign up for the extras. Use the extra $800 to pay off you smallest debt when that one is gone you will $1000-1100 extra to pay off the next smallest debt. Before you know it your out of debt and have about $2500-3000 per month to in toward retirement.
Rich and wealthy are not the same thing. Owning the nicest cars and house does not mean your rich. Usually it means your are in debt up to your eyeballs. Pay your debt off and pay cash for everything you can.
Student loan is a bitch
At $100k/yr i'd be able to have over 2k/month left over based on that list of expenses. Nobody needs a $530 car payment, or to go on vacation.
Easy solution: cut down all the unnecessary crap
Car - you save more on public transport and even help the world from preventing more carbon emission
You also save by not having car insurance since you wouldn’t have one anyway. This works if you live in nyc Seattle dc Portland Chicago or cities with good public transport
Gym- you don’t really need this you can lose calories from Public transport your house to bus to work
Netflix - you can go to relative or friend’s house
Clothes - wear simple clothing, you don’t need to impress people who don’t care, your wallet will thank you later
Dates -
If you can cook, why not just invite them over and cook the meal. You will save time and money wasted on waiting for the waiter
Not sure if anyone would read my advice I’m only 23 but saving a Lot of money gave me the freedom to travel to 30 different countries at my age :)
"Why not invite them over and cook the meal?" Yeah, good luck getting to meet your date somewhere that isn't a public place.
All these people saying can't live a respectable lifestyle on 100k and here I am making not even a quarter of that..
Wheres my frugal gang at?? Even if I was making like 280k a year after tax, I would only change my lifestyle a bit. A more expensive house, car and an increased budget on clothes, grocerys, and whatever crap. My point is I would still cringe when I buy an 80 dollar T shirt. 30 dollars I could manage.
@@16krez1 same.
You can easily cut some items in this list and save 2000$ so I disagree this salary as being “broke”
FR. A 530 car payment is a merc or BMW. That's not broke. My wife's parents barely survive on less than 15k a year. That's broke.
Yea it sounds like somebody don’t know how to budget they’re money😂 I definitely disagree with this too
You can cut the car, which will then have cheaper insurance, you can cut eating out/groceries you can be healthy for less, cut out cable, get a roommate, cut utilities, and so on
Kevin Devers
530 payment is the very of low end for bmw. Try closer to 800$-1000$ I’m saying this bc i have had a beemer for 3 years so I know
Kevin Devers not to mention car insurance.... through the roof for a beemer... 500$ is more like for an average car
I don't know about you guys, but almost every one of the expenses listed costs much less per month for me. My car payment is $360, car insurance is $50, cell phone is $80, groceries are $300, gas is $80, utilities are $180, etc. and I have no student loans (paid them off earlier this year). I added it up, and I'd have $1800 more than Ryan mentions in this video. It just shows that it depends on where you live and how much you spend on certain things in your life.
LOL, that mortgage + tax + insurance is ridiculously low for California. Mine is $2600, and I'm probably way below the median.
This guy has never been "broke". Video is informative for an introductory lesson on budgeting at least. However, if you can afford $400/month for savings, date nights, retirement fund, etc... you are far from broke. Don't less a$$ clowns tell you otherwise. Happiness is a better measure of success.
Married with 4 kids, single income (wife works as stay at home mom and we homeschool). Grossed just over $97k last year (in Montana, USA) and I must say I totally agree with your assessment Ryan. Even with average stuff (even average housing here is starts around $1200-1400 a month for mortgage payments) it is still paycheck to paycheck mostly. Just enough to keep you alive, but not much more.
The problem is that some people are not willing to live below their means. I was investing 75% of my pay into the Stock Market and making less than $100k per year. Now my portfolio alone is bringing in $100k+ on average 😁👌
Teach me your ways please, I beg you!
The expenses that could be cut down are:
1) 530 car payment. Instead, buy cheaper used car or pay off car with cash.
2) 400 date night. This could be lowered to 200 a month. Chick has gotta pay half.
3) 3000 vacation. This could be lowered to 2000 or less. You could pay 1000 of it just using credit card points you accumulate through the year.
4) 390 student loans. You gotta pay this off and perhaps pay less into retirement until its paid off.
Feasibily, you could save another 500 to 600 a month by cutting or slashing the above, allowing you to save closer to 1500 a month.
But otherwise, yes these expenses are real and somewhat accurate. Scary that 100k isn't actually much now.
Glad I'm below average for all of these expenses lol. 6 figure salary would be luxury to me compared to now.
Yep,me too !!!
Brunark me 4
In Boston 100k feels like 40k did in upstate New York
Have to agree, last year I achieved $100k a year online and after taxes, paying my own insurance, etc..is not as much money as I thought. Luckily I live a very frugal life and don’t spend lots of money on useless crap
Lester Diaz What’s up Lester. 👋
Pls. Teach me the online business that made u a lot of that amount ,even any that can give me quarter of that I will be grateful. . Am ready to pay for the info.Pls, help a bro.
@@agentsmith2798 What do you mean "incorporate your online activity with an offshore company"? Like what does one do exactly with what you're saying here?
I'm a 20 year retired Air Force guy: Master's degree paid in full, little to no health insurance costs, and I have 3000/month pension (started pension at age 39). With the education and skills I received in the military, I was able to land a salary of over 100k living in Nebraska of all places! The Air Force treated me well. I highly advise it as a possible path to any young person unsure of a direction. Granted, I did a few stints overseas but they came with many fond memories and friendships. Just an idea...
I've been thinking about joining the Air Force lately before I get too old. I'm currently 28 and I have a bachelor's in nursing. I haven't started working in the nursing field yet though. Any advice that you could give me with making my decision would be greatly appreciated.
@@deezy6867 ---Shondez----I know I'm waaaay late to this blog. But.....if you're health is good (you'll have to pass a physical) and if you're willing to sign up for 4 years, the AF will take you in a heartbeat. They're always looking for good medical personnel. You'll be an officer, so the pay rate is higher. You can look the pay charts up online, and see what people make for each promotion and for every year they stay in. I did 27 myself. I highly recommend it.
How is affording all average stuff being broke? Wouldn’t it be more like 100k is the new middle class? Your logic went kind of wanky there at the end
This is so true! If you see where I live you would question if we really make 100k/yr. Forgot to mention child support, phones for the kids, it just all adds up. Cant even think about vacation for another few years. We’re literally living paycheck to paycheck on 100k.
1 salary of $100 000/year = you are richer then 90% of Americans
I made 95k for year and I'm still broke after taxes, and child support. But contribute 16k in my 401k..
For context, NYC Councilman are paid $150k with six figure pension plans. You know the economy is broken when government workers are doing better than private sector workers.
"Those" govt workers are living large because they're sucking the blood from teachers, police, fire, etc.
@@stevemcdonald6001 Wrong, at least when it comes to NYC. Firefighters and Teachers have lucrative pensions in NYC, we'll into six figures. You know the economy s broken when government works do better than private sector workers
I stand corrected, but I mean the world of most ordinary Americans.
The economy is broken mainly due to monopolists buying unlimited favors from politicians. Did I mention the social-darwinist Republican agenda? May numerous fly larvae escort it across the Styx
Unless it is hybrid or electric, don't buy a new car on a loan. Then rent some cheap apartment while building a savings account, then you can spend on things later.
Even with your horrible money management ($530 for a car payment!?) your able to save $400 in a savings, $250 in vacation, and $740 left over with lots of room to save money. I don’t see how anyone is “broke” saving $1390 a month with room to improve.
1000 bucks for a house that's really cheap in California.
RUBEN M for real. I doubled that in my mind instantly.
That's because California is expensive! Move to Ohio, midwest, or Oklahoma.
So why not call this the paycheck to paycheck for 100k. A real 100k isnt being used to its max. You spend 45k at most and the rest you save/invest.
The concept is .. you can make 1M per year or 100M and still be broke. All depends on what you save/invest for later and your discipline on spending
That is super crazy! I was looking into houses and I live in NY too Ryan. For an average house to get a mortgage you’d need at least this $100k salary due to the debt to income ratio. It’s sad to think $100k is not a lot. Goes wayyy to quick 😱
Exactly why I'm moving away from NY/NJ it ain't worth it honestly. Plus since I can work remotely I can save tons of money. I plan on moving to North Carolina or Pennsylvania. But I know there is more then cost of living on why people live where they live
@@stephenlevine3116 actually NJ is still pretty affordable for now but in Hudson county which is next to NY is getting just as expensive like NY I move from NYC to Hudson county
It's not how much you make it's how you spend your money that really makes or breaks your wealth.
Made $80k last year, saved $32k, invested it all. It’s not that difficult. Just don’t waste money on shit you don’t need, trying to impress people you don’t care about.
So you only spend $2000 a month….. as Kevin McAllister from Home alone said; “I don’t think so”. I think you assume people will not do the math.
@@scottkint I was a grad student for too long. Once you learn to live on nothing, it’s hard to break the habit. Having a partner to share costs is huge. Plus, no kids, no mortgage (rent) also makes it possible.
If you make $100,000 a year, why do you have a car payment?! Just buy a car for about $5,000. You can get a very nice, dependable car for $5, 000
RYAN: Great job. On behalf of the MILLIONS of people who think a hundredG is “rich”, THANKS! We need to set our sights higher.
With that amount you are broke/poor in the bay area. People think you can live frugal lives and you would be OK. But in reality you would not. most stuff that they choose to be frugal with end up costing them more, medical bills.
The key is to pay off your debt first and then not carry a car payment
$530 per month for a car, $150 monthly for a phone. $400 on date nights after already spending $500 on groceries. Is this really average spendings or luxury spending?
So having a house, a $500/month car, $500/month groceries, a college degree, money set aside every month for retirement, a new phone etc is being broke? Of course all your money is spent, you bought everything you wanted/needed.
Many of the expense are too high, my cell bill is $30 a month, date night once a month is $60, car insurance is 75 a month, nobody making less than 200k should have a $530 a month car payment.
You actually forget the biggest expense, daycare.
$30/month for a cell bill !! Wow, you are good, because most people who have fancy iPhone are probably paying around $80/ month. I actually agree that $530/month for car payment is way too much for most people (90% of American are making less then $100 000). I recently sold my car and I’m now saving a lot of money.
My Dad said a zillion times "if you are smart enough to know how to make it, you better be smart enough to know how to keep it !!!"
I shared your father's advice in my WhatsApp status👌👍
I make an equivellant of around a 100k a year and I'm definitely not broke... :)
Depending on where you live in the south 100k can go a long way because its reasonably way cheaper than everywhere else
thats nice. what state do you live in because I know you dont live in san francisco, or los angeles or new york city.
which state do you live in?
@@jobob47 wrong 100k in LA is still a lot of money. I'm from LA and make just shy of 100k. I live more than comfortable. I just dont spend my money on dumbass shit or go around getting myself in debt for a brand new car. Now San Fran, that's a whole different story.
eliminate car payment and school loan that's $920.00 saved
As a senior systems analyst I was making 102,546 (just looked at my w-2 from 2016) I'm at 115K now and I TOTALLY agree with this. This is the reason I busted my ass in search for passive income.
You shouldn’t have added the $440 for health insurance. If you’re salary is $100k than your health insurance is probably a free benefit.
OP: Says $100k isn’t much money. OP: Proceeds to list expenses that poor people can’t afford at all.
Sure man.
$1030 for a mortgage payment? Not here on the west coast. Apartments start at $1500 let alone a house mortgage.
Get your student loan paid off and pay cash for your car... now you have 1700 left over... and you've already put retirement and every other major thing in the equation... that's good money
If you make 100k a year and your broke.. you’re living way above your means
$100 per week for date night, saving for future expeses, saving for retirement, a $3000 vacation every year, and $740 per month left over? Doesn't sound "broke" to me. Thumbs down.
Spending habits and whether you are single/have kids factor in greatly. I was living pretty well on a low 50's salary because I'm frugal and do not try to impress people with fancy stuff. Not having kids help too.
Thats the new broke? I must be Ethiopia then 😂
This was a great breakdown of how the average lifestyle can make you broke. It fuels me to not just make more money but generate wealth.
Great explanation Ryan! It depends on many things but I like your example, keep it up!
Money management is the cause of al lot of broke people .. good info 🔥
I make $110K+, and live in NYC. He’s extremely correct. When you factor in expenses, I feel like I only make $40K/year. Note: The numbers that he used here aren’t reflective of NYC, where the cost of living is extremely higher than the national average. We also pay local/city taxes, which means that our take home is much less than the national average. What he’s saying isn’t foreign to NYers (specifically those who live in the five boroughs), because we know that money doesn’t go far here.
The key is to always live below your means
I have never spent $3000 on a vacation. In fact, I take 2-3 vacations per year and never spent $3000 on vacations in a year. We just take advantage of the national park system and go to popular places in the off season. Never dropped $100 on a date night. My mortgage is less than $450 per month. Your numbers certainly sound reasonable. It's just that people tend to adjust their expectations for their standards of living based on income. Of course if I had $100,000 a year to work with, I'd probably have a house that didn't have rotting floors and maybe I'd buy a car with fewer than a quarter million miles on the odometer. But at $800 per month, my health insurance and medical expenses eat up a third of my gross income. That's why I'm broke. Since my learning disabilities and income prevevented me from getting the education necessary to earn six figures, I learned how to live well with what I can earn. I can't imagine, since I can manage on roughly a third of it, being broke with $100,000 per year coming in unless I was living somewhere like Boston or San Diego.
U.S.$100,00 is nearly double the median household's income even in the U.S.A; almost anywhere else in the world, that would be a very high income. The easiest path to financial independence is not earning more, but saving more, and spending less, no matter where you live or what you earn. E.g., my first wage was Bds$125 per week (= U.S.$62.50) and I travelled by bus and ate only home-made meals. I saved about $50 per week. Sometimes, that means moving to a cheaper place or to a cheaper city, State, . . . or COUNTRY.
Just an honest opinion: If you are going to say 740 a month left, i assume you mean disposable income? If you add your savings (400) and date night (400), which are definitely disposable income, and even your retirement contribution (400), you are getting at least 1940 dollars a month in disposable income. Dont separate what u save and spend from disposable income as those are wants, not needs. You just seem to be lowering the numbers to make things feel more exgaggerated. And dont get me started on separating cell phone (150), and Cable/wifi (150). I highly doubt you need 300 a month on just wifi, netflix, and installment payments on your new phone.
Me and my wife's combined salary are right at this threshold and we are living paycheck to paycheck. This is why I decided to start a business on the side to help me get over those financial boundaries. Very motivating video.
you hate to see it. luckily you started a business, hope it's helping.
Who controls the checkbook in your house . Not saying you do , but alot of people Twitter away a lot of money every month on stuff they dont realize .
It’s not gonna be easy growing, but I’m gonna make it happen.
Well my car is paid for cash so thats $550 in my pocket, my health insurance is 140 so thats $300 in my pocket and i have no student loans so thats $390 in my pocket, so thats $1,240.00 in my pockets monthly which equals to 14,880 a year in my pocket.
This way of thinking is why 100k is broke. You dont accrue all this debt just expecting monthly payments to be the norm. If you didnt have a $530 a month car payment you'd have another $530 to pay off your student loans...
Try living on less than 10k/year (777/month-disability) and tell me that 100k/year is any sort of 'broke'.
I can cut out the $400 a month on dates, because no guys want to date me. And I don't know any guys that are even worth a Big Mac, nevermind a $100 date.
I’m glad you broke this down for the people blinded by Instagram and Facebook posts .
This is ridiculous 😂 I live in a house hold that generates 150,000 a year and we have 4 cars, a decent sized house, and lots of entertainment bills, plus we have money to spend on multiple vacations and miscellaneous items
only 28.6% on taxes, in FInland you would pay close to 50%.
Korkinmäen kikkeli We have to pay for healthcare, and college, and possibly other things that your tax money goes too.
And that's broke as a single adult. That's the scary thing, it's a system designed to price out families.
LOL stupid
this was really an eye opener, more reasons as to why passive income is incredibly important
just goes to show you 500 something dollars every month for a car payment is stupid.
buy a car with cash and never have a car payment is the way to go.
also - you don't really need to spend $400 on date nights every month, that's excessive. Spending $1000 a month on date night and your car is what's killing that hypothetical person's wealth.
$400 for a date night? Must been some hot date!
I learned from this video that you are bad with money :)
Get rid of the car and take public transportation, you will save a lot of money.
shebakali6 unfortunately, not a viable option for the average American
"Vacation fund"....awww, bless your heart.
And it doesn’t help that healthcare and tuition keep going up every year, but salaries can’t keep up
A long time ago, a sales manager warned me and a lot of my teammates about lifestyle inflation.
Dave Ramsey and his baby steps will set you free.
No mortgage, no car payment, no motorcycle payment, $45 per month electricity, $60 per month property taxes, $60 per month heating, $50 per month phone, $80 per month internet... That's why I could afford to spend the last 2 1/2 months in SE Asia and flying back to USA today... Start my garden in a few days...You can't control how much you make, but you can control your expenses.... Thanks for the video
Depends on the person if you can make 100k and put 60k in the bank then reinvest that 60k and continue doing that you’re money will grow like the snowball effect
Who's out here putting 60k if they only have $990 left a month
Investing Hustler your take home pay is about $70ishk if you’re making $100k. How are you saving 86% of your take home pay unless you have zero bills.
I agree. I put 60k annually in my savings account and use 50k for living. I have nice cars and a 300k house (payment of 1800 monthly) .. everything else (expenses) under my control.
I say people who earn $100k are not better off by $100k or whatever, they simply have learned how to spend $100k.
100,000 is not rich but it definitely is not “broke.” It’s pretty blessed in my opinion
If your financial irresponsible, you will be broke no matter how much you make. People that won millions from the lottery even become broke. That being said 100k a year is like what top 30% of all American salaries which I would definitely consider rich. 30 years at this job will get you over 2million after taxes. The video is just an example to getting yourself into too much debt
Easier to reduce your spending than to increase your salary. The more you earn, the more stressful the job has to be.