I'm the host of Netflix's “How To Get Rich” and in this video, I'll react to some financial TikToks. Let's see if they're good, misleading …
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I'm the host of Netflix's “How To Get Rich” and in this video, I'll react to some financial TikToks. Let's see if they're good, misleading …
source
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39 comments
I’m going to keep my 2011 Chevy Express van. I just ticked over 48,000 miles. Best feature? It’s paid for! PS: I was always taught 25% save/invest, 25% house & cost, 25% Food/Clothes and 25% for family spending (fuel, food, medical copays)
I bought my first home at age 11 years old. My second at 15. My third at age 21. I got a divorce at age 29. I pulled out my equity in our marital home. I paid cash. (The homes I owned as a child were income producers for college and medical school) Since the home I bought with that equity. I saved all those “phantom” house payments, and as a single parent, I sent both children to Harvard and paid cash! No student loans. I even had money leftover in the college fund, and gave each child their first home! I sold that divorce home and I was able to pay cash for this retirement home. Now that my two children are set up for great careers, I am now setting my sights on all those fun hobbies I can now do, with time and money.
I am no 63 years old and I am fully retired. I’m setting up a trust fund t pay for my grandchildren to go to college. I purchased several 100 acres, which will be divided amongst adult age grandchildren. I always buy land, land is FINITE, G-d is NOT building Earth 2.0!
PS: I taught my children about money. They still follow my tips and understand that living below your means is a wise way to manage their income. They are both M.D.’s and are frugal, invest and they love to buy gold. They are only 43 and 37 years old. ON BUDGETS, I have to make up a monthly budget and taught my children to budget. I can give you every one on my budget since 1971!!!
As international student I would like to invest in the USA, but I want to know if it is legal to do it? I earn $800 per month. Its because I cant work more than 20 hours.
For anyone that was curious about the 300k lady. That is combined income (150k+150k), and they are buisness founders.
My fiance and I were curious about the whole 3% down thing recently. We were looking at a house (an old manufactured one on rented land) and the monthly total cost would have been over $4000 usd. We don’t make that much monthly. We went and talked to a guy at chase and he straight up told us, yes you can get that house for just a few thousand right now and he can get it all done almost as soon as we walk out the door that day, but he told us that he doesn’t want to do that, then said we do better saving up as much money as we can and coming back when we can put a higher down payment giving us lower monthly costs we can afford or even saving just a bit longer and buying a house outright. Edit to add: this is in Bay Area, California.
I was one of those inflation zombies, I no longer stumble after you yelling "eRoDiNg PuRcHaSiNg PoWeRrrrr"
Deranged looser😂😂😂😂
There's a piss off in Canada if you're on minimum wage rent can be 80 to 90% of your income
Dave’s pretty on track with the average person being dumb. Just check out literacy rates….
I guess billionaires love the 3$ questions as they keep us busy blaming ourself
I agree with the old guy, 90% of people are stupid, 9% reasonable, 1% is smart. Im part of the 9%, people keep saying im a genius, but i know its because they stupid. Also the only reason why this channel exists. I mean everything you said is common sense, but to the masses its financial guidance. Im being too blunt, i will shutup now.
To defend NIMBYs, since I am one and was raised by them while living in an area of extremely high development, I can tell you that "more development lowers housing prices" sounds nice, until you see just how scummy developers are and how harmful new developments typically are to existing communities. It's not as simple as adding new houses in an area that has open land for grabs. New development is typically thousands of homes or apartments. It vastly raises taxes on everyone, restricts or depletes resources while raising their costs, overcrowding infrastructure, and saddling the existing communities with new infrastructure like disruptive construction, water tanks, power lines, and more. Developers are out to fill their own pocket and will lie to expand their plans 3, 5, 10 fold and then dump all the adjacent responsibilities of 20,000 new homes on the neighboring communities.
Also, NIMBY only applies to communities that don't want to support 100,000 new people who moved into their area from other states or cities that are seeking homes. Many folks who are happy with city living or urban living (which typically have no restrictions on new development and already have it permitted and planned) move out of those areas because of soft-on-crime policies that made their communities dangerous, crappy policies that inflated taxes and cost of living beyond what is bearable, or laws that restrict freedoms and lifestyles. California is the ever-excellent example. Massive population growth has historically and drastically shifted political foundations and values across the country to match that of the newcomers.
It's true. I can't put 500. But I can put in 50 in a tough month. Absolutley.
funny seeing you dunk on Humhrey Yang in this video. i follow him and he provides a lot of sound financial wisdom. homeownership aside, i think yall would agree on probably majority of things.
My grandad bought a house at 19 for 25k. He worked for $3/hr 40-50hrs/week during the winter (let’s say 3-4 months). The year before, he took a 30k loan while he was in high school so he could work with his dad who didn’t pay him. He understands that can’t happen today but my grandma thinks her success can be replicated. She went to college, her dad paid for the first quarter at UGA (you read that right) and she exited college DEBT FREE. Yeah a few scholarships and grants but she still had to pay. Oh yeah…she washed planting pots in a lab for $1.50/hr….
Do you have content discussing insurance?
At least I’m changing my mind, to start save and investing, thank you Ramit Sethi to your book I will teach you to be reach.
Love your content Ramit. The way you deliver your content keeps me locked in with your humor. I have your book "I will teach you to be rich" and I'm looking forward to get through more chapters during the holidays. Keep up the great work on your channel and your other ventures.
I'm house poor and I don't even own a house
This is great advice. It would be great if you could do a video on planning for retiring abroad. I've looked into this and Roth IRAs make very little sense when retiring abroad. This has changed my retirement post-tax allocation a lot.
Dude…I've been wondering for quite some time why people don't just build new homes in a lot of places (just an on and off thought I've had for like 15+ years no biggie lol) and you answered my question telling us about NIMBY's. I had no idea this was a thing but it doesn't surprise me in the least bit! You definitely gotta be the real deal cause you definitely just earned a real sub. 🙏
to be honest its a big flex that people what a 40m video till the end without crazy edits. Recpect
I love the "generation lessons" about wealth.
Its true. I dont regret spending my money young. Those memories are worth more than a million bucks
What about a regular IRA to get the tax advantage and then roll it over into Roth IRA?
16:59 my main goal of trying to learn more about investing
Bro I like but not trying to be negative even tho it's gonna sound this way. More people are going in debt to take vacation then in history.
this guy legit doesn't believe poor people exist… relatable
I’ve bought both of my houses with just 5% downpayment. I now have a total of $400,000 in equity. I don’t understand why it matters if the value of the house drops below what you still owe…. You pay your monthly payments and the equity will slowly build itself.
Good video, but I disagree on the “Generational Wealth” section. This is not an either-or situation. People can build wealth, enough to pass to the next generation, in a multitude of ways. People need somewhere to live and owning is almost categorically better than renting over a long enough time horizon.
Is it the most efficient way to build wealth? Absolutely not. Real estate is non-fungible. The rate of return on real estate has historically lagged behind the market.
With that said, is it a bad way to generate wealth? Absolutely not. I quite like the idea of fixing my housing costs for the next 30 years in order to free up extra cash flow for investing over that time period. I like the idea of socking away some of my mortgage payment by paying down my principal.
It’s a different strategy, and honestly it adds some diversity to a wealth building portfolio. I think home ownership should be encouraged, and wealth building is one of the best aspects of it.
Came for the advice, stayed for the Humphrey roast
500/mo is not impossible, but I only figured out spending now. I am overly close to retirement.
Same! I keep saying I'm going to live forever so my money can grow 😂
36ms: I love it. "One doesn't have to be smart to earn money, however, one should be smart about how to spend/invest that money." I had high hopes years ago to build a real estate investment portfolio for passive income, but after I began investing in 2023, I did the math (somewhat..) and realize that the ROI on real estate rental properties was not worth the time or energy if I where to just invest it in high-yielding dividend ETF. That said, dealing with tenants, cost, maintenance, taxes, vacancies, repairs, is a headache. Sure I can hire a property management to handle these things but its just not work the headache. In my opinion, being new to all of this, the main benefit from having real estate is borrowing equity to invest. So I invest on my own and forgo real estate. If my kids wish to invest in real estate, I will help them, but I've decided I just don't need that headache.
I'm a single mom, work in tech, make a low 6 figs. I have a low 6 figs portfolio due to investing in my early 20s, I own a home that's gonna be paid off by my tenants. It's absolutely doable.
What you will be able to learn in this video.❤
• The host, a financial expert and bestselling author, emphasizes the importance of being cautious about financial advice on TikTok, noting that while some content is valuable, much of it can be misleading.
• The video features a review of various TikTok financial tips, highlighting the necessity of discerning which advice is legitimate and which should be disregarded.
• The host discusses the benefits of investing in a Roth IRA and low-cost index funds, suggesting that consistent investment can lead to significant wealth accumulation over time.
• Homeownership is addressed as a potential means of building generational wealth, but the host stresses the importance of financial stability and having savings before making such a commitment.
• The video critiques the common TikTok narrative that buying a home automatically leads to equity, arguing that many people overlook the ongoing costs associated with homeownership.
“The economy is great” cue the house on fire dog meme
A two bedroom apartment is 2000-2500 a month in Everett WA a one room studio is 1400-1700
I make way less than 70k a year and put more than $500/month into my investment savings.