*I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market.*
Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.
It's really not easy investing or trading the financial market. I read a lot of books, tried to study, watch some tutorial videos, did a little demo before funding my account and I still lost a lot. The financial market could be very tricky
Hey Erin. As usual, a great video. Just retired at 57 having been an aggressive saver throughout my career. The best advice I received was from a financial planner I became friendly with at the gym I joined after graduating college. He explained the power of dollar cost averaging and compound interest and the importance of establishing a meaningful savings rate in my 401K while I was in my early 20s. By setting this up and steadily increasing it each year as you describe, I never felt the pinch of that extra savings. As you have mentioned in past videos, it is the last decade of working that you really start to see the power of compound interest.
We live in a neighborhood that has 3 phases , each built a few years later with larger more expensive housing. But during the 2008 housing mess,it was the most expensive area had the most foreclosures as you can guess. Almost 80 % of all foreclosures in this entire development was in the “rich side” . Live within your means is the true indicator of success.
Hi Erin, thank you for another great vid and discussion. I am almost 75, retired at 62, like you I also did it; and have a fully funded and comfortable retirement. I married early, had first child and bought first house by 30. I have always been the sole wage earner in household and started investing in my early 20s. I'm a life long learner, interested in finance and investing and never invested in single stocks, always funds. When I started I did not have the abundance of online content like there is today, so it required real effort and dedication to learn about finance and investing. I have been able to help and be very generous with my adult children. My advice would be to never stop being curious and learning, know your goal, make a plan and revisit it annually, stick with the plan regardless of what the market is doing and never deviate, don't be obsessed with what the market is doing each day, increase your savings rate a bit each year, invest and don't speculate or gamble, let time and the power of compounding do its magic. You have a great channel Erin and I pray it is resonating with your younger followers. Have a great week ahead Erin. Larry, Central Valley, Ca.
Great advice, Erin. I understand all investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. But if I can make more return on investment with individual stock at a given time, should I still choose mutual fund? I'm kind of confused.
Yes, my biggest irk with ETFs is the lack of optimization. Large changes in any given stock in the ETF can drag your portfolio down. But in general, ETF or not, I think the stock market isn't showing any sign of slowdown. Investing now instead of parking money in the bank would make thousands of dollars in ROI if done right.
Disciple and education. I’m in my mid-40s and wish I’d learned a lot of things earlier. No regrets though - am actively investing and ahead of the mean figures that I see for saving and retirement. Everyone’s journey is different!
I'm also a late bloomer, and still struggling in a lot of ways due to disability and lack of lifetime supports, but I'm doing my best to teach myself what I can now. I'll never be able to make up the time I've lost as that IS the key to the bigger growth changes with investing safely, but I'm doing it at least.
"Your life should be exciting, but your finances boring".... my thoughts exactly (even though my life can be boring - which isn't all bad). Take Erin; I enjoy your videos!
Great video Erin! I’m 30, my investing philosophy is the more boring, the better. I basically invest in only large caps, and the S&P. As for non financial, I always say I only get one body in my life, so I’m gonna take care of it.
I understand what you are saying, but for many, the 5 dollar latte is just an example of the bigger problem. Your husband is military, well Coast Guard, but close enough, lol. In the military we harp on the small things, “attention to detail”, as they can lead to bigger problems. Start with the small things, establish self discipline and the rest will follow.
Yeah the $5 latte is usually accompanied by a $15 daily lunch, regular $50 nights out on the weekend and lots of random unneeded crap from Amazon and Target. It adds up to several hundred dollars every month for a lot of people.
Rarely ever did Starbucks, until we reached FI. Even then, it is normally on double or triple star days, and especially when there is another promo going on, and don't forget the extra 25 cups for bringing your own mug! Still shop w/ coupons, especially Costco makes it so easy! And our decades old use of timeshares, they DO still continue to provide economical, comfortable accommodations in very nice locations. Always have and always will spend reasonably.
@@Peter-kt2gb this sounds like something you might have heard in 2016. Let me update it for the younger people: Yeah the $9 latte is usually accompanied by a $20 daily lunch, regular $200 nights out on the weekend and lots of random unneeded crap from Temu and SHEIN. It adds up to a thousand dollars every month for a lot of people.
@user-zo2ge3oe8d it really all depends on where you live. Getting a latte from my local Starbucks or Dunkin is gonna be $6-$7. You could eat at Subway or Culver's for $15. I probably undershot the night out a bit. Most cocktails are gonna be $12-$15. So if you get several drinks and bar food etc it can easily shoot past $50. Or you can also get cheap beer. Maybe $100 would be a little more reasonable. But these are numbers for living in a town of 35000 in Indiana. Obviously high cost of living cities are gonna be a bit different.
You're absolutely right; attention to detail is everything! We Marines swear by it! And for the record, the Coast Guard is indeed part of the US military! 👍👍
I remember someone once pointing out that the problem isn't the $5 coffee or the avocado toast, but rather that it's often a sign of a bunch of other consumption habits that are probably bigger problems, like: regular Uber-Eats, eating out for lunch every day, etc.
In college (about a million years ago), I had a professor talk about investing, and these words stuck with me over the past 50 or so years "Never invest over the sleeping line". In others words never invest so much you can't sleep at night.
If you fund a Roth each year, why would you loose sleep? Even without an emergency fund, you could use the principle from the Roth if you really had to. My philosophy was to always strike a balance - treat you and the old you equally.
@@hogroamer260 That "advice" was LONG before IRAs and ROTHs. Back then financial advice was not as regulated as it is now. My first broker (M/L) traded so much I lost money. When the IRA came out, it was not well understood and the ROTH was completely unknown to most people. Those were the "dark ages" of investing to a very young employee with a new family. Today investors have many ways to get good advice. We are OK now in retirement. BTW, I love your advice, keep up the good work!
Yup, keeping up with the Jones' will prevent you from succeeding in retirement many times. I retired at 52 seven years ago and couldn't give a hoot about what others do or think of me. Retirement is awesome.
I’m 3yrs into retiring at 50 years old. Working hard young and investing robustly in boring 💩 got me here. My house is paid and I can do what I want with whom I want for as long as I want. The Jones are still working.
I was expecting "You should be saving 10% in your 401K". Your "whole self" section covered this perfectly! At the end of this year, my daughter and I will contribute $7500 into my grandaughters Roth IRA. She will be 4 and this will be the third year contributing. If we, or later, she don't ever contribute again, that account will be worth $1.5M when she's 60. People who don't plan their retirement will likely never get the satisfaction of doing something like that for their child or grandchild.
The most important message you mentioned - Consistency... my parents told me about the 401k in 1985 at 20. Thank you mom and dad!! You have great content and messages that I share with my kids. The best thing is that they appreciate it - thank you all who produce quality and useful content!
Good video as usual. Totally agree that one should save as soon as possible, however you can save too much, and deprive yourself of life experiences. Always focus on the present while not neglecting the future. Life is not promised nor is health. I don’t regret any money we spent when young, and we spent a lot. What I learned over the years is that saving is also important, and we found the happy middle ground. We are mid 60’s and still quite active, but even now there are experiences that would be way more difficult than they were 20 years ago. Also most people will have a lot of curveballs thrown at them over the decades, which again is why I say enjoy in a responsible way. DO NOT “sacrifice”on purpose, Instead live today while planning for tomorrow.
You sleep better at night knowing that if you miss a paycheck or two that you won't lose everything you have (have not own). A few years ago I had my friends kid in my truck going fishing. I saw a nice new truck and said man I would love that truck. He said can you not afford it? I said I can buy that truck cash plus keep this truck, then he said why don't you buy the truck. I said you don't save money by buying everything that is shinny.
Great video as always, Erin! My favorite quote: “Don’t try to keep up with the Joneses. Declare the Joneses the winners.” The truth is that they might win with more stuff right now, but they also have the stress of it and they definitely won’t win in the end.
Well done. Not only do you go one more year without a car payment but your new car is a year (or two) newer. Being a millionaire is impressive. The new yardstick is being able to live like a millionaire ( the old millionaire of the 1970s )while remaining a millionaire . That’s someone who is not only financially free but financially comfortable .
From the thumbnail, I was a little afraid you were going to come for my $2 sleep mask that lets me sleep in the day. My favorite piece of advice is probably that try to invest $100,000 as fast as you can quote from Charlie Munger. Assuming remotely normal stock returns, if people lived at home for 3-4 years at the very start of their career and invested everything they could in low cost index funds and never touched them until retirement, they'd have over $1 million in retirement. That seems like the easiest way to save for retirement to me. Obviously, it's not available to everyone, but many people probably have parents who would be happy to let their kid stay at home longer for little to no rent if it meant setting them up for a good future.
Great advice. I started saving for retirement in my twenties. My advice: Save aggressively Live beneath your means. Stop trying to hit a home run with single stocks. (Ask me how I know) Stick with it.
Single money losing momentum stocks, fancy options strategies, house flipping... what else did I miss? Oh, I wished I had a future self years ago to knock some sense into my thick skull
Words of wisdom! Every year in January or February we examine our portfolio to determine how it's tracking and if any rebalancing is necessary. This is my 2nd year of retirement (age 66). Everything you mentioned paid off for us!
Yep retired at 48, not a huge savings my bad but downsized and real estate hack brought my expenses to zero. Most could not stomach that but it beats working.
My favorite piece of advice is make a habit of continuously learning about finances and investing. I'm always reading a book on some aspect of personal finance. Never stop learning.
Thank you for doing these videos! My family is scared about investing. They believe most people get wealthy because of a high paying job. A high paying job does help, but investing is a "bigger" wealth handle. Also as incomes increase, make sure to increase the investment amounts. It is essy to say I deserve the trip, I deserve a new car, I deserve a house/bigger house. Budgeting with ynab or like software is a key handle as well.
Very wise words. Thank you for keeping us grounded. Also I love the simplistic impact of the "...none of your business quote and story" I'll look to share that with others when the right times come!
Don’t Deprive yourself of life experiences. Live WITHIN your means and be frugal, but not cheap. Invest in yourself as well as the market. $5 coffee won’t break you and I love good coffee. An $800 car payment will break you. Good words of wisdom. As for me I choose not to have kids and live life as I please. I am debt free and Make well into six figures annually.
This is all great advice. I'm going to send the link to this video to my niece, who's not too far along into her career. And the best piece of advice I ever got, which I ignored (I told myself I couldn't afford to save) and which you mentioned: the power of compound interest.
Once again, I'm taking something away from a video by Erin just as I need it. Her advice that life should be exciting, but your finances should be boring hit me like a mallet. I'm looking to retire in the next 2-4 years depending on the vagaries of life. I've had my investments in 100% equities across multiple low cost index funds based on small, mid and large capitalization. My philosophy has always been I had a long time for market recovery from dips. I think my lifetime return has been very good. About 3 years sgo i put about one fifth of my investments into a stable value (but boring) fund. As my investment recovery time is so small now, I've been thinking of moving half my funds into the stable value fund. That way when I retire I can pull funds from the stable value fund and each year transfer a little bit of equities into stable value. I realize I am figuratively addicted to big market jumps with the corresponding big cash returns. Erin has convinced me to follow through with starting to focus on investment preservation. Thank you, Erin 😊
2:00 Fun with individual stocks: My "risky" stocks, and buy dates, that were winners: AAI (AirTran Airlines) 2001 (after 9/11), Under Armour 2002 (sold 2016), Netflix 2005, Bank of America 2008 (bought during the crash at under $4.00/share), Tesla 2015. My "safe boring" stocks and buy dates, that were losers: Phillips Petroleum 1986, F (Ford Motors) 1999, General Electric 2008. Moral of the story, playing it "safe" can really stink. Better to play it diversified with a few small bets on potential high fliers.
We have always lived beneath our income and invested a lot. We drive regular cars and don’t care what others drive, but I’ve never been pasted by a car that I couldn’t buy several of. When you know that you could buy any car you want, it gives you freedom and allows you not to be envious.
I've had some bad luck in my life (I was hit by a car while I was walking in high school, I fell off a cliff in college, and I was hit by a drunk driver in summer 2022), and I was lucky enough to get a head start on my investment plan from the tragedies. Now, I could survive in retirement, even if I don't invest any more money, assuming the market keeps growing at a similar pace. However, I would only be able to buy the essentials. I'll keep investing and hopefully eventually I'll have a comfortable retirement!
Great wisdom, young lady! My wife and I work hard to Read our Career hey serve 37 years in the Marines and we are both in our mid 60s looking forward to our retirement with a nice nest egg . I am passing this video onto our three daughters who were all in her 30s .
Love your life. The past present and future should have fond memories and welcome anticipation. Don’t let short term distractions that will cost you dearly take up space in your joy and peace
Car maintenance. I learned to work on my own car since I was a teenager. My 22 year old vehicle is cheap to insure (liability only), taxes are way cheap, and it runs like new with over 200k miles. I have always done all maintenance on it myself. I only purchase parts and the occasional tool. That 1 factor has been a huge one over time. Also DIY everything around the house. Plumbing, electric, HVAC, etc. Same deal there. A lifelong skill set that pays huge dividends over time. Hourly, the savings I pocket is more than my day job pays. Totally worth it.
Great video. Almost everyone can improve their situation. There are some who are stuck in a victim mentality, spending energy on complaining about challenges and the macroeconomic environment instead of taking action.
Very well said Erin, it starts with health. That's the one thing you can't start thinking about at 65. And I do start every day with Avocado toast with one jalapeno cut up on it and a big glass of water.
My net worth probably doubled from $2 million in 2019 to $4 million today in 2024 simply from allowing investments to grow without lifting a finger.. I was raised poor and remember clearly that 5 pound block of government cheese as a kid. I do know how there are folks out there today working two minimum wage jobs just to survive. I try and tip 25% or give a $5/$10 bill to cashier's and say thank you for their help. I know I can't help everyone, but I hope I can try to make their day a little better one dollar at a time.
@@FIRED13 I just did some napkin math, and if I am correct the growth for the S&P500 from 2019-end of 2021 is 1.90%----so almost doubled. 2021--26.89% 2020--16.26% 2019--28.88% Let's forget 2022 LOL!
One aspect of an individual's 401k that needs to be considered, is the asset fee. Make sure you are contributing to a fund that offers a dividend that will cover that asset fee and have some left over for compounding interest. If you go for, say those "target date funds" those have massive asset fees where you'll more likely acquire compounding expenses, rather than compounding interest.
When considering expenses, it’s worth noting if it’s going towards an appreciating asset versus just money out the window. For example, are you paying rent or a mortgage? Are you taking a course that opens up new job opportunities? Are you buying a tool that allows you to do a paid job in less time? Some expenses are also investments.
7:10 Good on you. I honestly think building more townhomes and real starter homes would help relieve some of the housing affordability issues in the country, anyway
Here are the four smartest financial moves I've made. First, I started my 401k at age 30 with15% contribution. I'm now the future me at age 53 and so glad I did, its 7 digits and I'm planning to be retired in 17 months. My company also offers a good pension which I also benefit from. Second was buying a home. I bought a $300k home back in 2003 which is now over $500k in value. Third was refinancing my high interest rate 30 yr mortgage at 2.7% for 15 years when rates plummeted, this saved me about $150k in interest. My only regret is that I didn't do 10 year term instead. Fourth, I only buy used vehicles, 2-3 years old and drive them well over 100,000 miles and perform all routine maintenance myself.
Yes, thank you! Address the big expenses. I remember years ago reading an article in a magazine that suggested that women should use a dime-sized amount of shampoo instead of a quarter-sized amount and that would save them a bunch of $$$. Um, I don't think so. How about paying off your car and then "pretending" you have a car payment for the next 5 years, pay cash for your next car and then never have a car payment again. That is what is going to get you ahead.
Appreciate your videos as always! I totally agree we need to start with the big picture items in our budget and also that health is so key!! Hope you and fam have a great weekend Erin!!
God bless you...Erin, you are so RIGHT ON! It's so practical and what my parents (one 100 years old now) taught us, but you can share on this platform with illustrations and in our culture where the American Dream is excessive and unnecessary (an inflated lifestyle), so that when we grow money early we can be outrageously generous now (by living under our means) and radically as this money compounds, gets out of hand, and we give it away so we can die with zero, rather than pass a massive amount at the end.
hope lots of your generation, and younger, watch this. They will thank you in 10+ years. Now I am someone who would likely be about as old as your parents. And lived a life style that you are advocating, and are living. So here is my question to you. What are you going to do with a portfolio that will generate more income than you possibly could or would want to use? Is your plan to leave it to your child? Create a trust? Or some other plan. I will tell you it is something you should consider now, as it may make you choose some decisions now. Such as traveling more. I guess I am with you. For most of middle class Americans. There are no reasons why they can't live a good, fruitful, enjoyable life. And still have an extremely comfortable retirement, without the stress of living off only SS, or a small portfolio. As was written supposedly by a very smart person. (Einstein), "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it."
SO true Erin.... Great video.. I passed this video on to several people I know with younger children including my daughter. Thank you for your efforts. Always great stuff....
I liked your point about working just one year longer, and how much the account can grow in that year. I'm about 10-15 years away from retirement, but at the point where my contributions are miniscule compared to the swings of the portfolio value. It does make me wonder about whether I need to still be contributing the same amount as always, given how little effect it has on the balance. My main reasoning for continuing to contribute is that if I stopped saving for retirement, inevitably my spending would increase---which would also increase the amount needed to fund my retirement. It is a fine line to walk, between spending enough to enjoy life, but also having enough saved so I'm not forced to keep working when I'm ready to retire.
But will that one year longer be another year and another year and another year after? More importantly, what is the marginal value of that one year longer costing you in enjoying your best life? I've recently came upon Azul Wells YT channel and find his perspectives illuminating on the when to retire decision. He's also one of the only channels that really addresses the retirement transition, answering the what now question that many personal finance vloggers never get to. His selling point is his trademarked "The Youth of Your Senior Years". Basically, you really only have 1000 weeks of healthy life in "The Youth of Your Senior Years". Because of this, you really ought to question and put in perspective the marginal financial gain of working another year versus enjoying your life during the 1000 weeks you will have in healthy, active retirement years.
Great video Erin. You're right on the large expenses. The big key is show up to work early, smile and improve your income. Try to limit debt and widen that gap from income to outgoing.
I love Starbucks. But never went there until about seventeen years ago when my son got a job there. By that time our finances were starting to accelerate their compounding. I bought SBUX in 2011 and today got a $1,083 dividend from them. My son still works for Starbucks at the corporate level. He’s got a bit of stock himself.
boring and steady takes less of your time and energy to manage, and reduces stress over market swings or more volatile stock picking. I do own a basket of individual stocks simply because I habitually consume the goods and services of those individual companies. So, I'm literally paying myself.
I totally agree with your investing advice for individual stocks. I also only invest in companies whose products/services I use. When I go shopping, it feels as if the products are free due to stock appreciation.
Erin, I’ve finally binged your channel and have watched all of your videos to date. Have you considered going into practice as a CFP? Your delivery and videos are among the best I’ve seen. I am an avid consumer of EVERYTHING personal finance. I listen to 12 hrs plus podcasts weekly and am a “do it yourself’r” with my personal finance planning. I know that you monetize your videos on CZcams, but with your knowledge and creativity, you could earn MUCH more being a CFP. I’m adverse to hiring an CFP, but if you ever choose to do so, please allow me to be your first client. Keep up the great work that you do! I’ll be watching as you post👍 Sincerely, A huge fan…. Shawn Sears 😊
Hey Shawn! Here’s the low down. Yes, I 100% wanted to be a CFP. Went to school for it, completed the 6 additional required courses, and took the test. Never finished the internship, some 6,000 hours worth. 😂 Maybe one day I will do that - but it just hasn’t been a priority. And here’s why…. I genuinely WANT people to win with their money!! And when I compare what a hourly fee advisor made vs a fee only advisor made it seemed very difficult to make a good living. I DO NOT want to charge a percent of AUM. I pictured an advisor doing that to my mom or my grandparents- and I’m just so opposed to it. It feels like it takes advantage of people. I use my degree on the daily, I love the subject of finance and maybe I can make a bigger impact with this CZcams channel. Also, I have a regular 8-5 job. I have a dental consulting firm. And I truly love what I do. I throughly enjoy the clients I work with, I love the speaking engagements, and I have a small group of employees who love the job. To complete my CFP internship I would have to sell my business (and quite frankly take a pay cut) - neither of which I want to do. So maybe one day that CFP will be completed, but for right now it’s not a priority. I’m focusing on my family, my dental business, and this channel. And that’s enough for now 😊
The smartest person and also the most wealthiest person I know told me this “ until you learn about the stock market and how it works. In best in what you know. If you love Coca Cola. But Coke stock. If you love wallymart. Buy wallymart stock.”
Best advice I recieved was give 10% save 10% and live on the 80%. I started saving the worst way possible, coffee can not even buried in the yard 😂. But saving rate is more important interest rate. I've moved on to bonds, retirement and index funds now of course.
Excellent video with important ideas and concepts! As always, thank you! I'm curious, have you done any videos on how to invest "conservatively" if the market volatility is too stressful for someone? Asking as I think it might be interesting to explore that question. Personally, I'm essentially 100% but now technically have some I Bonds so I can have enough at retirement (can't do it all at once due to annual limits) to weather sequence of return risk.
I love this channel. It’s so down to the ground. I always look forward to new videos. Honestly Dave should do a collaboration. You aren’t sensationalist. If he interviewed Graham he should interview you. 😊
@@JohnPMiller agreed - but I like to allot around $1k-$2k to analyze 52 week low stocks and pounce on stuff I think has a solid rebound incoming. The gains go into more stable investments and any losses dont cause stress because that cash allotment is invested knowing the risk.
Building wealth is pretty boring. It's just a matter of consistently investing in low cost index funds over a long period of time. As I get older, it's getting more exciting to see the results of my previous years of saving and investing...And I agree that health is more important than wealth!
Good investing is boring. Too many people complicate things (buying rental properties, buying single stocks or crypto or gold, day trading, etc.) They think they have to be doing something "fancy" to make good money. The other day the SP500 went up 2%. We made over twice as much money in the market that day than we did working. It doesn't have to be fancy. Good investing is supposed to be boring and simple. There is a phrase in golf that "good golf is boring" meaning if you have a great round you hit the fairway, hot the green then 2-putt for par. It doesn't feel special. There were maybe no fun "hero" shots from under a tree. My lowest round ever was 80 and I didn't even realize how well I was playing bc there wasn't much drama to my round. It was just kinda boring.
I like how the money guy show compares wealth building to boiling water. For a long time it looks like absolutely nothing is happening and then one day.... it boils over.
Not everyone can become millionaire, maybe the median american citizen can, but "everyone" means everyone. Not even the median person can. The median worldwide per-capita household income is only $2,920 per year, even if we assume that the median individual has the same income as their household, then saving 7.5% at an 8% rate of return for 40 years would be $88k , far below that $1M. EDIT: So, at least 50% of the world can't, but I would argue that even the americans with the lowest 10%-20% income can't become millionaires in that simple way.
This video is brought to you by Starbucks. Hard disagree with her on the "5 dollar lattes". Your daily venti with oatmilk will run you about $8 plus tip. And because people keep buying them, expect the price to keep going up. I am sure in a couple of years when the price of a Starbucks latte is well over $10, personal finance creators like this will still be saying don't give up the "5 dollar latte". Such bad faith advice.
I invest 11% into my 401k with an additional 4% match. I will also be investing several hundred a month into a brokerage account soon. I just wanna finish paying off my consumer debt first.
I always say when the market is down, the stocks are on sale! I contribute to my Roth every pay day, so by default I am dollar cost averaging with my money.
Alan Watts says that the future never comes, and the past doesn't exist. Our lives are always stuck in the perpetual "now". The hairline on a watch is what life is. If one only focuses on the future, they never actually live
Wait... The tree moved. Something didn't look right. Also, didn't the couch have cup holders? Anyway, great content (and I do enjoy my Starbucks binge once in a while. PSL all day).
The first 20 seconds of this video pretty much spells it out, Erin (& I’m literally posting this having watched 45 seconds of it). There’s no such thing as “get rich quick” unless you magically win the lottery. The key to getting rich is solid diversified investments over many years. (And now I’ll resume watching).
Nice job on the presentation. Your story telling to get your points across is great. It would be good to know what your favorite financial books are. I think you’re a Boglehead!
I’ve been a Boglehead since the late 90s when we were the Vanguard Diehards on the Morningstar website. Your advice is spot on. Just sent it to my teen kids saying, there will be a test!
For five bucks a day, it's probably worth it. $100/month, $1200/yr, at 5% growth for 40 years only amounts to around $153k. You should be able to outearn that in 40 years. That's only about $425/month extra earnings (assuming a tax plus income deduction rate around 25%)
If you had invested in Bitcoin instead of Facebook and VTI, you're net worth would likely be at least 50x what it is now. Bitcoin is the best performing asset during that timeframe, and it's likely to continue to overshadow all other investment options
When I have conversations about investing with my friends, they make fun of me because I’ve made mistakes buying into the FOMO for crypto, gold, and individual stocks. I have since learned from my mistakes and have 100% of my investments in the S&P500 index but that’s “boring” my friends say. ITS SUPPOSED TO BE BORING!!! 😅
The best advice is simple and boring
1. Spend less then you make
2. Save and invest
You can spice it up a bit with spreadsheets that map expected progress and past performance. That kept me enthused to stay the course.
3. Get lucky.
*I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market.*
Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.
It's really not easy investing or trading the financial market. I read a lot of books, tried to study, watch some tutorial videos, did a little demo before funding my account and I still lost a lot. The financial market could be very tricky
Yeah I have same issue also, sometimes I feel like the market is being manupulated
Trading under the guidance of an expert is the best strategy for beginners.
Hey Erin. As usual, a great video. Just retired at 57 having been an aggressive saver throughout my career. The best advice I received was from a financial planner I became friendly with at the gym I joined after graduating college. He explained the power of dollar cost averaging and compound interest and the importance of establishing a meaningful savings rate in my 401K while I was in my early 20s. By setting this up and steadily increasing it each year as you describe, I never felt the pinch of that extra savings. As you have mentioned in past videos, it is the last decade of working that you really start to see the power of compound interest.
Agreed!
Compound Interest! Magical!
We live in a neighborhood that has 3 phases , each built a few years later with larger more expensive housing. But during the 2008 housing mess,it was the most expensive area had the most foreclosures as you can guess. Almost 80 % of all foreclosures in this entire development was in the “rich side” . Live within your means is the true indicator of success.
Hi Erin, thank you for another great vid and discussion. I am almost 75, retired at 62, like you I also did it; and have a fully funded and comfortable retirement. I married early, had first child and bought first house by 30. I have always been the sole wage earner in household and started investing in my early 20s. I'm a life long learner, interested in finance and investing and never invested in single stocks, always funds. When I started I did not have the abundance of online content like there is today, so it required real effort and dedication to learn about finance and investing. I have been able to help and be very generous with my adult children. My advice would be to never stop being curious and learning, know your goal, make a plan and revisit it annually, stick with the plan regardless of what the market is doing and never deviate, don't be obsessed with what the market is doing each day, increase your savings rate a bit each year, invest and don't speculate or gamble, let time and the power of compounding do its magic. You have a great channel Erin and I pray it is resonating with your younger followers. Have a great week ahead Erin. Larry, Central Valley, Ca.
Great advice, Erin. I understand all investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. But if I can make more return on investment with individual stock at a given time, should I still choose mutual fund? I'm kind of confused.
Yes, my biggest irk with ETFs is the lack of optimization. Large changes in any given stock in the ETF can drag your portfolio down. But in general, ETF or not, I think the stock market isn't showing any sign of slowdown. Investing now instead of parking money in the bank would make thousands of dollars in ROI if done right.
I've been thinking of switching to an FA to manage my investments too. Any idea you could recommend one to me?
Disciple and education. I’m in my mid-40s and wish I’d learned a lot of things earlier. No regrets though - am actively investing and ahead of the mean figures that I see for saving and retirement. Everyone’s journey is different!
I'm also a late bloomer, and still struggling in a lot of ways due to disability and lack of lifetime supports, but I'm doing my best to teach myself what I can now. I'll never be able to make up the time I've lost as that IS the key to the bigger growth changes with investing safely, but I'm doing it at least.
"Your life should be exciting, but your finances boring".... my thoughts exactly (even though my life can be boring - which isn't all bad).
Take Erin; I enjoy your videos!
Great video Erin!
I’m 30, my investing philosophy is the more boring, the better. I basically invest in only large caps, and the S&P.
As for non financial, I always say I only get one body in my life, so I’m gonna take care of it.
I understand what you are saying, but for many, the 5 dollar latte is just an example of the bigger problem. Your husband is military, well Coast Guard, but close enough, lol. In the military we harp on the small things, “attention to detail”, as they can lead to bigger problems. Start with the small things, establish self discipline and the rest will follow.
Yeah the $5 latte is usually accompanied by a $15 daily lunch, regular $50 nights out on the weekend and lots of random unneeded crap from Amazon and Target. It adds up to several hundred dollars every month for a lot of people.
Rarely ever did Starbucks, until we reached FI. Even then, it is normally on double or triple star days, and especially when there is another promo going on, and don't forget the extra 25 cups for bringing your own mug! Still shop w/ coupons, especially Costco makes it so easy! And our decades old use of timeshares, they DO still continue to provide economical, comfortable accommodations in very nice locations. Always have and always will spend reasonably.
@@Peter-kt2gb this sounds like something you might have heard in 2016. Let me update it for the younger people:
Yeah the $9 latte is usually accompanied by a $20 daily lunch, regular $200 nights out on the weekend and lots of random unneeded crap from Temu and SHEIN. It adds up to a thousand dollars every month for a lot of people.
@user-zo2ge3oe8d it really all depends on where you live. Getting a latte from my local Starbucks or Dunkin is gonna be $6-$7. You could eat at Subway or Culver's for $15. I probably undershot the night out a bit. Most cocktails are gonna be $12-$15. So if you get several drinks and bar food etc it can easily shoot past $50. Or you can also get cheap beer. Maybe $100 would be a little more reasonable. But these are numbers for living in a town of 35000 in Indiana. Obviously high cost of living cities are gonna be a bit different.
You're absolutely right; attention to detail is everything! We Marines swear by it! And for the record, the Coast Guard is indeed part of the US military! 👍👍
I remember someone once pointing out that the problem isn't the $5 coffee or the avocado toast, but rather that it's often a sign of a bunch of other consumption habits that are probably bigger problems, like: regular Uber-Eats, eating out for lunch every day, etc.
I don't know how you don't have half a million subs yet. Your content is phenomenal and you are wonderful to watch. Thank you for all you do!
Maybe one day! 😊
In college (about a million years ago), I had a professor talk about investing, and these words stuck with me over the past 50 or so years "Never invest over the sleeping line". In others words never invest so much you can't sleep at night.
If you fund a Roth each year, why would you loose sleep? Even without an emergency fund, you could use the principle from the Roth if you really had to. My philosophy was to always strike a balance - treat you and the old you equally.
@@hogroamer260 That "advice" was LONG before IRAs and ROTHs. Back then financial advice was not as regulated as it is now. My first broker (M/L) traded so much I lost money. When the IRA came out, it was not well understood and the ROTH was completely unknown to most people. Those were the "dark ages" of investing to a very young employee with a new family. Today investors have many ways to get good advice. We are OK now in retirement. BTW, I love your advice, keep up the good work!
Agreed! We have also done lot of similar things! Low Expense, Investing every month in equity index funds & individual stocks & Have Discipline!!❤🔥
Yup, keeping up with the Jones' will prevent you from succeeding in retirement many times. I retired at 52 seven years ago and couldn't give a hoot about what others do or think of me. Retirement is awesome.
You do you. That's awesome!
I’m 3yrs into retiring at 50 years old.
Working hard young and investing robustly in boring 💩 got me here.
My house is paid and I can do what I want with whom I want for as long as I want.
The Jones are still working.
Being comfortably retired in your 50's will Trump a Mercedes, even in the Joneses eyes.
seems declaring you don't give a hoot what others think of you in public fora is actually giving a hoot about what others think of you.
@@hanwagu9967 If you say so. I disagree. Life is good for me.
I was expecting "You should be saving 10% in your 401K". Your "whole self" section covered this perfectly!
At the end of this year, my daughter and I will contribute $7500 into my grandaughters Roth IRA. She will be 4 and this will be the third year contributing. If we, or later, she don't ever contribute again, that account will be worth $1.5M when she's 60. People who don't plan their retirement will likely never get the satisfaction of doing something like that for their child or grandchild.
The most important message you mentioned - Consistency... my parents told me about the 401k in 1985 at 20. Thank you mom and dad!! You have great content and messages that I share with my kids. The best thing is that they appreciate it - thank you all who produce quality and useful content!
Good video as usual.
Totally agree that one should save as soon as possible, however you can save too much, and deprive yourself of life experiences.
Always focus on the present while not neglecting the future.
Life is not promised nor is health.
I don’t regret any money we spent when young, and we spent a lot. What I learned over the years is that saving is also important, and we found the happy middle ground.
We are mid 60’s and still quite active, but even now there are experiences that would be way more difficult than they were 20 years ago.
Also most people will have a lot of curveballs thrown at them over the decades, which again is why I say enjoy in a responsible way.
DO NOT “sacrifice”on purpose, Instead live today while planning for tomorrow.
You sleep better at night knowing that if you miss a paycheck or two that you won't lose everything you have (have not own). A few years ago I had my friends kid in my truck going fishing. I saw a nice new truck and said man I would love that truck. He said can you not afford it? I said I can buy that truck cash plus keep this truck, then he said why don't you buy the truck. I said you don't save money by buying everything that is shinny.
Great video as always, Erin! My favorite quote: “Don’t try to keep up with the Joneses. Declare the Joneses the winners.” The truth is that they might win with more stuff right now, but they also have the stress of it and they definitely won’t win in the end.
Well done. Not only do you go one more year without a car payment but your new car is a year (or two) newer.
Being a millionaire is impressive. The new yardstick is being able to live like a millionaire ( the old millionaire of the 1970s )while remaining a millionaire . That’s someone who is not only financially free but financially comfortable .
From the thumbnail, I was a little afraid you were going to come for my $2 sleep mask that lets me sleep in the day.
My favorite piece of advice is probably that try to invest $100,000 as fast as you can quote from Charlie Munger. Assuming remotely normal stock returns, if people lived at home for 3-4 years at the very start of their career and invested everything they could in low cost index funds and never touched them until retirement, they'd have over $1 million in retirement. That seems like the easiest way to save for retirement to me. Obviously, it's not available to everyone, but many people probably have parents who would be happy to let their kid stay at home longer for little to no rent if it meant setting them up for a good future.
Great advice. I started saving for retirement in my twenties. My advice:
Save aggressively
Live beneath your means.
Stop trying to hit a home run with single stocks. (Ask me how I know)
Stick with it.
Single money losing momentum stocks, fancy options strategies, house flipping... what else did I miss?
Oh, I wished I had a future self years ago to knock some sense into my thick skull
This commentary is one of your very best...keep investing simple and boring, it will reward you for your future!!
I appreciate that! 😊
Words of wisdom! Every year in January or February we examine our portfolio to determine how it's tracking and if any rebalancing is necessary. This is my 2nd year of retirement (age 66). Everything you mentioned paid off for us!
Yep retired at 48, not a huge savings my bad but downsized and real estate hack brought my expenses to zero. Most could not stomach that but it beats working.
My favorite piece of advice is make a habit of continuously learning about finances and investing. I'm always reading a book on some aspect of personal finance. Never stop learning.
Thank you for doing these videos!
My family is scared about investing. They believe most people get wealthy because of a high paying job.
A high paying job does help, but investing is a "bigger" wealth handle.
Also as incomes increase, make sure to increase the investment amounts.
It is essy to say I deserve the trip, I deserve a new car, I deserve a house/bigger house.
Budgeting with ynab or like software is a key handle as well.
Very wise words. Thank you for keeping us grounded. Also I love the simplistic impact of the "...none of your business quote and story" I'll look to share that with others when the right times come!
Don’t Deprive yourself of life experiences. Live WITHIN your means and be frugal, but not cheap. Invest in yourself as well as the market. $5 coffee won’t break you and I love good coffee. An $800 car payment will break you. Good words of wisdom. As for me I choose not to have kids and live life as I please. I am debt free and Make well into six figures annually.
This is all great advice. I'm going to send the link to this video to my niece, who's not too far along into her career.
And the best piece of advice I ever got, which I ignored (I told myself I couldn't afford to save) and which you mentioned: the power of compound interest.
Thanks for sharing!! 😊
Once again, I'm taking something away from a video by Erin just as I need it. Her advice that life should be exciting, but your finances should be boring hit me like a mallet. I'm looking to retire in the next 2-4 years depending on the vagaries of life. I've had my investments in 100% equities across multiple low cost index funds based on small, mid and large capitalization. My philosophy has always been I had a long time for market recovery from dips. I think my lifetime return has been very good. About 3 years sgo i put about one fifth of my investments into a stable value (but boring) fund. As my investment recovery time is so small now, I've been thinking of moving half my funds into the stable value fund. That way when I retire I can pull funds from the stable value fund and each year transfer a little bit of equities into stable value. I realize I am figuratively addicted to big market jumps with the corresponding big cash returns. Erin has convinced me to follow through with starting to focus on investment preservation. Thank you, Erin 😊
Love this 😊
2:00 Fun with individual stocks:
My "risky" stocks, and buy dates, that were winners: AAI (AirTran Airlines) 2001 (after 9/11), Under Armour 2002 (sold 2016), Netflix 2005, Bank of America 2008 (bought during the crash at under $4.00/share), Tesla 2015.
My "safe boring" stocks and buy dates, that were losers: Phillips Petroleum 1986, F (Ford Motors) 1999, General Electric 2008.
Moral of the story, playing it "safe" can really stink. Better to play it diversified with a few small bets on potential high fliers.
"don't want to hear" ... OH!! I need to hear this.
We have always lived beneath our income and invested a lot. We drive regular cars and don’t care what others drive, but I’ve never been pasted by a car that I couldn’t buy several of. When you know that you could buy any car you want, it gives you freedom and allows you not to be envious.
I was an indexer for 25 years, but I realized as I got older that good individual stocks is the way to go for a soon-to-be retiree.
Because of dividends? Or something else?
I've had some bad luck in my life (I was hit by a car while I was walking in high school, I fell off a cliff in college, and I was hit by a drunk driver in summer 2022), and I was lucky enough to get a head start on my investment plan from the tragedies. Now, I could survive in retirement, even if I don't invest any more money, assuming the market keeps growing at a similar pace. However, I would only be able to buy the essentials. I'll keep investing and hopefully eventually I'll have a comfortable retirement!
Great wisdom, young lady!
My wife and I work hard to Read our Career hey serve 37 years in the Marines and we are both in our mid 60s looking forward to our retirement with a nice nest egg .
I am passing this video onto our three daughters who were all in her 30s .
Love your life. The past present and future should have fond memories and welcome anticipation. Don’t let short term distractions that will cost you dearly take up space in your joy and peace
Car maintenance. I learned to work on my own car since I was a teenager. My 22 year old vehicle is cheap to insure (liability only), taxes are way cheap, and it runs like new with over 200k miles. I have always done all maintenance on it myself. I only purchase parts and the occasional tool. That 1 factor has been a huge one over time. Also DIY everything around the house. Plumbing, electric, HVAC, etc. Same deal there. A lifelong skill set that pays huge dividends over time. Hourly, the savings I pocket is more than my day job pays. Totally worth it.
Great video. Almost everyone can improve their situation. There are some who are stuck in a victim mentality, spending energy on complaining about challenges and the macroeconomic environment instead of taking action.
Very well said Erin, it starts with health. That's the one thing you can't start thinking about at 65. And I do start every day with Avocado toast with one jalapeno cut up on it and a big glass of water.
My net worth probably doubled from $2 million in 2019 to $4 million today in 2024 simply from allowing investments to grow without lifting a finger..
I was raised poor and remember clearly that 5 pound block of government cheese as a kid.
I do know how there are folks out there today working two minimum wage jobs just to survive. I try and tip 25% or give a $5/$10 bill to cashier's and say thank you for their help.
I know I can't help everyone, but I hope I can try to make their day a little better one dollar at a time.
That's a nice four year return. What is your portfolio comprised of?
@@FIRED13 100% S&P500 since 2018. Disclaimer is we annually maxed out our 401k+403b+457 so we threw about $60,000+ annually towards this growth.
@@FIRED13 I just did some napkin math, and if I am correct the growth for the S&P500 from 2019-end of 2021 is 1.90%----so almost doubled.
2021--26.89%
2020--16.26%
2019--28.88%
Let's forget 2022 LOL!
One aspect of an individual's 401k that needs to be considered, is the asset fee. Make sure you are contributing to a fund that offers a dividend that will cover that asset fee and have some left over for compounding interest. If you go for, say those "target date funds" those have massive asset fees where you'll more likely acquire compounding expenses, rather than compounding interest.
When considering expenses, it’s worth noting if it’s going towards an appreciating asset versus just money out the window. For example, are you paying rent or a mortgage? Are you taking a course that opens up new job opportunities? Are you buying a tool that allows you to do a paid job in less time? Some expenses are also investments.
Assets vs liabilities 101
7:10 Good on you. I honestly think building more townhomes and real starter homes would help relieve some of the housing affordability issues in the country, anyway
The hoa rent needs to go on those, though
Here are the four smartest financial moves I've made. First, I started my 401k at age 30 with15% contribution. I'm now the future me at age 53 and so glad I did, its 7 digits and I'm planning to be retired in 17 months. My company also offers a good pension which I also benefit from. Second was buying a home. I bought a $300k home back in 2003 which is now over $500k in value. Third was refinancing my high interest rate 30 yr mortgage at 2.7% for 15 years when rates plummeted, this saved me about $150k in interest. My only regret is that I didn't do 10 year term instead. Fourth, I only buy used vehicles, 2-3 years old and drive them well over 100,000 miles and perform all routine maintenance myself.
Engagement comment for Erin. Keep up the great work!
Discipline, Consistency, and Patience! Start as soon as you can. Take advantage of everything your company offers you including stock purchase plan!
Yes, thank you! Address the big expenses. I remember years ago reading an article in a magazine that suggested that women should use a dime-sized amount of shampoo instead of a quarter-sized amount and that would save them a bunch of $$$. Um, I don't think so. How about paying off your car and then "pretending" you have a car payment for the next 5 years, pay cash for your next car and then never have a car payment again. That is what is going to get you ahead.
Oh my gosh! I can’t believe that someone actually suggested a smaller dollop of shampoo.
Appreciate your videos as always! I totally agree we need to start with the big picture items in our budget and also that health is so key!! Hope you and fam have a great weekend Erin!!
Thanks Nathan! I hope you have a great weekend as well!! 😊
God bless you...Erin, you are so RIGHT ON! It's so practical and what my parents (one 100 years old now) taught us, but you can share on this platform with illustrations and in our culture where the American Dream is excessive and unnecessary (an inflated lifestyle), so that when we grow money early we can be outrageously generous now (by living under our means) and radically as this money compounds, gets out of hand, and we give it away so we can die with zero, rather than pass a massive amount at the end.
This should be posted on CNBC.😂
hope lots of your generation, and younger, watch this. They will thank you in 10+ years. Now I am someone who would likely be about as old as your parents. And lived a life style that you are advocating, and are living. So here is my question to you. What are you going to do with a portfolio that will generate more income than you possibly could or would want to use? Is your plan to leave it to your child? Create a trust? Or some other plan. I will tell you it is something you should consider now, as it may make you choose some decisions now. Such as traveling more.
I guess I am with you. For most of middle class Americans. There are no reasons why they can't live a good, fruitful, enjoyable life. And still have an extremely comfortable retirement, without the stress of living off only SS, or a small portfolio. As was written supposedly by a very smart person. (Einstein), "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it."
SO true Erin.... Great video.. I passed this video on to several people I know with younger children including my daughter. Thank you for your efforts. Always great stuff....
Thanks for sharing!! 🙏
I liked your point about working just one year longer, and how much the account can grow in that year. I'm about 10-15 years away from retirement, but at the point where my contributions are miniscule compared to the swings of the portfolio value. It does make me wonder about whether I need to still be contributing the same amount as always, given how little effect it has on the balance. My main reasoning for continuing to contribute is that if I stopped saving for retirement, inevitably my spending would increase---which would also increase the amount needed to fund my retirement. It is a fine line to walk, between spending enough to enjoy life, but also having enough saved so I'm not forced to keep working when I'm ready to retire.
But will that one year longer be another year and another year and another year after? More importantly, what is the marginal value of that one year longer costing you in enjoying your best life? I've recently came upon Azul Wells YT channel and find his perspectives illuminating on the when to retire decision. He's also one of the only channels that really addresses the retirement transition, answering the what now question that many personal finance vloggers never get to. His selling point is his trademarked "The Youth of Your Senior Years". Basically, you really only have 1000 weeks of healthy life in "The Youth of Your Senior Years". Because of this, you really ought to question and put in perspective the marginal financial gain of working another year versus enjoying your life during the 1000 weeks you will have in healthy, active retirement years.
Drive old cars, use cheap cell phones with NO contract, avoid a fast food habit. Retire with 1 million dollars in IRA. That simple.
Great video Erin. You're right on the large expenses. The big key is show up to work early, smile and improve your income. Try to limit debt and widen that gap from income to outgoing.
Great way to phrase it!
I love Starbucks. But never went there until about seventeen years ago when my son got a job there. By that time our finances were starting to accelerate their compounding. I bought SBUX in 2011 and today got a $1,083 dividend from them. My son still works for Starbucks at the corporate level. He’s got a bit of stock himself.
boring and steady takes less of your time and energy to manage, and reduces stress over market swings or more volatile stock picking. I do own a basket of individual stocks simply because I habitually consume the goods and services of those individual companies. So, I'm literally paying myself.
I totally agree with your investing advice for individual stocks. I also only invest in companies whose products/services I use. When I go shopping, it feels as if the products are free due to stock appreciation.
Erin, I’ve finally binged your channel and have watched all of your videos to date. Have you considered going into practice as a CFP? Your delivery and videos are among the best I’ve seen. I am an avid consumer of EVERYTHING personal finance. I listen to 12 hrs plus podcasts weekly and am a “do it yourself’r” with my personal finance planning. I know that you monetize your videos on CZcams, but with your knowledge and creativity, you could earn MUCH more being a CFP. I’m adverse to hiring an CFP, but if you ever choose to do so, please allow me to be your first client. Keep up the great work that you do! I’ll be watching as you post👍
Sincerely,
A huge fan…. Shawn Sears 😊
Hey Shawn! Here’s the low down. Yes, I 100% wanted to be a CFP. Went to school for it, completed the 6 additional required courses, and took the test. Never finished the internship, some 6,000 hours worth. 😂
Maybe one day I will do that - but it just hasn’t been a priority. And here’s why….
I genuinely WANT people to win with their money!! And when I compare what a hourly fee advisor made vs a fee only advisor made it seemed very difficult to make a good living. I DO NOT want to charge a percent of AUM. I pictured an advisor doing that to my mom or my grandparents- and I’m just so opposed to it. It feels like it takes advantage of people.
I use my degree on the daily, I love the subject of finance and maybe I can make a bigger impact with this CZcams channel.
Also, I have a regular 8-5 job. I have a dental consulting firm. And I truly love what I do. I throughly enjoy the clients I work with, I love the speaking engagements, and I have a small group of employees who love the job. To complete my CFP internship I would have to sell my business (and quite frankly take a pay cut) - neither of which I want to do.
So maybe one day that CFP will be completed, but for right now it’s not a priority. I’m focusing on my family, my dental business, and this channel. And that’s enough for now 😊
And I forgot to say this in my previous comment….THANK YOU SO MUCH for watching 💙
The smartest person and also the most wealthiest person I know told me this “ until you learn about the stock market and how it works. In best in what you know. If you love Coca Cola. But Coke stock. If you love wallymart. Buy wallymart stock.”
Good content Erin - it's the simple things that bring incredible results. Keep up the good work!
Best advice I recieved was give 10% save 10% and live on the 80%. I started saving the worst way possible, coffee can not even buried in the yard 😂. But saving rate is more important interest rate. I've moved on to bonds, retirement and index funds now of course.
Saving more as you make more is so important!
Excellent video with important ideas and concepts! As always, thank you!
I'm curious, have you done any videos on how to invest "conservatively" if the market volatility is too stressful for someone?
Asking as I think it might be interesting to explore that question. Personally, I'm essentially 100% but now technically have some I Bonds so I can have enough at retirement (can't do it all at once due to annual limits) to weather sequence of return risk.
I love this channel. It’s so down to the ground. I always look forward to new videos. Honestly Dave should do a collaboration. You aren’t sensationalist. If he interviewed Graham he should interview you. 😊
Trust me, if Dave ever calls, that would be a call I would answer in a heartbeat. He’s an absolute legend. 💙
Indeed. A normal person wouldn't want to hear those tips, because those tips are parts of common sense.
Long term investing is the smart play. But gambling in the market with money you are okay with losing is a vice of mine 😅
Owning part of a company you believe in through stock purchase is not gambling.
@@JohnPMiller agreed - but I like to allot around $1k-$2k to analyze 52 week low stocks and pounce on stuff I think has a solid rebound incoming. The gains go into more stable investments and any losses dont cause stress because that cash allotment is invested knowing the risk.
You’re very wise, especially for someone so young!
Great video, thank you!
Building wealth is pretty boring. It's just a matter of consistently investing in low cost index funds over a long period of time. As I get older, it's getting more exciting to see the results of my previous years of saving and investing...And I agree that health is more important than wealth!
Good investing is boring. Too many people complicate things (buying rental properties, buying single stocks or crypto or gold, day trading, etc.) They think they have to be doing something "fancy" to make good money. The other day the SP500 went up 2%. We made over twice as much money in the market that day than we did working. It doesn't have to be fancy. Good investing is supposed to be boring and simple. There is a phrase in golf that "good golf is boring" meaning if you have a great round you hit the fairway, hot the green then 2-putt for par. It doesn't feel special. There were maybe no fun "hero" shots from under a tree. My lowest round ever was 80 and I didn't even realize how well I was playing bc there wasn't much drama to my round. It was just kinda boring.
i dont get advice that i dont want to hear because i keep quiet until im in "my investor circle"
I like how the money guy show compares wealth building to boiling water. For a long time it looks like absolutely nothing is happening and then one day.... it boils over.
Not everyone can become millionaire, maybe the median american citizen can, but "everyone" means everyone. Not even the median person can. The median worldwide per-capita household income is only $2,920 per year, even if we assume that the median individual has the same income as their household, then saving 7.5% at an 8% rate of return for 40 years would be $88k , far below that $1M.
EDIT: So, at least 50% of the world can't, but I would argue that even the americans with the lowest 10%-20% income can't become millionaires in that simple way.
Excellent advice
This video is brought to you by Starbucks. Hard disagree with her on the "5 dollar lattes". Your daily venti with oatmilk will run you about $8 plus tip. And because people keep buying them, expect the price to keep going up. I am sure in a couple of years when the price of a Starbucks latte is well over $10, personal finance creators like this will still be saying don't give up the "5 dollar latte". Such bad faith advice.
You give excellent advice. Thank you.
Glad it was helpful!
I invest 11% into my 401k with an additional 4% match. I will also be investing several hundred a month into a brokerage account soon. I just wanna finish paying off my consumer debt first.
Best advice I got was to start saving young.....start now!
Thanks for sharing!
Thanks as always for the content and the thoughts and ideas that generate from it.
My advice would be to have a plan. For me it was a game changer.
I always say when the market is down, the stocks are on sale! I contribute to my Roth every pay day, so by default I am dollar cost averaging with my money.
How long have you been investing Erin?
Well…bought my first stock at 8 years old 😂 so technically 28-29 years….started getting really serious about it at 16 - so about 21 years
@@ErinTalksMoney Haha that’s early. I didn’t start until 25, I’m 27 now but my assets are only $30K
Just stick with it!!
@@ErinTalksMoney Will do and your videos definitely help
1st comment!🎉 always look forward to Monday and Friday!
Any advice that Erin tells me I will listen even if I don't want to hear it! Because it is Erin saying it.
😂
Alan Watts says that the future never comes, and the past doesn't exist. Our lives are always stuck in the perpetual "now". The hairline on a watch is what life is. If one only focuses on the future, they never actually live
Investing in your health is the most profitable index fund you can make.
Wait... The tree moved. Something didn't look right. Also, didn't the couch have cup holders? Anyway, great content (and I do enjoy my Starbucks binge once in a while. PSL all day).
The tree did move, but the cupholders were only there accidentally in one video. 😂 I take them off before I film, so it looks cleaner.
The first 20 seconds of this video pretty much spells it out, Erin (& I’m literally posting this having watched 45 seconds of it). There’s no such thing as “get rich quick” unless you magically win the lottery. The key to getting rich is solid diversified investments over many years. (And now I’ll resume watching).
Nice job on the presentation. Your story telling to get your points across is great. It would be good to know what your favorite financial books are. I think you’re a Boglehead!
I am a Boglehead!! 😊
I’ve been a Boglehead since the late 90s when we were the Vanguard Diehards on the Morningstar website. Your advice is spot on. Just sent it to my teen kids saying, there will be a test!
Because someone said I couldn't accumulate as much as you say, I missed 1 5 years of investing.
Very good and informative video!!
My 5 dollar coffee is the reason why I can retire early. It helps me focus on getting more comp, more money
For five bucks a day, it's probably worth it. $100/month, $1200/yr, at 5% growth for 40 years only amounts to around $153k. You should be able to outearn that in 40 years. That's only about $425/month extra earnings (assuming a tax plus income deduction rate around 25%)
@@dstevens518 I would rather spend that mental gymnastic earning more.
If you had invested in Bitcoin instead of Facebook and VTI, you're net worth would likely be at least 50x what it is now. Bitcoin is the best performing asset during that timeframe, and it's likely to continue to overshadow all other investment options
Great video Erin. Thank you!
Thanks for watching!
When I have conversations about investing with my friends, they make fun of me because I’ve made mistakes buying into the FOMO for crypto, gold, and individual stocks. I have since learned from my mistakes and have 100% of my investments in the S&P500 index but that’s “boring” my friends say. ITS SUPPOSED TO BE BORING!!! 😅
Great video Erin.
Thank you!