Brutally Honest Financial Advice to Fix Your Sh*t

I’ve helped change the financial lives of millions of people over the last 20+ years…and here are 12 brutally honest lessons about money you need to hear.
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Ramit Sethi is the host of Netflix’s “How To Get Rich” and New York Times bestselling author of “I Will Teach You To Be Rich”
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[@einstein1102]

Ramit woke up on the wrong side of the bed today and decided to spill real facts on us. We all need and could use someone who is telling the truth like this.

[@paulaooook]

I can’t imagine the foolishness he gets in his inbox. He snapped lol

[@vmolina2002]

😂

[@YourFrienjamin]

Passion is a powerful thing

[@DWI_JUiiCE]

That’s why he needs to invest in a good bed 😂

[@mariannagreenlee]

My favorite investment story is when Fidelity decided to interview the people who had really strong performances with their portfolios. When they contacted them they discovered the person forgot they had the account or they were dead. 💀

[@qcspt]

🤣

[@rebeltheharem7028]

Honestly, that's exactly as expected.

[@dinyahome]

@@mariannagreenlee 😅

[@anhdo2196]

Where did you find this, I need to see 😂

[@aking1196]

😂😂😂 makes sense

[@blurrydog1]

“Do not confuse desire with affordability” is the best advice. as soon as you put your desire over affordability you turn to justifying every excess purchase.

[@RobDob1569]

These videos make me think Ramit has a split personality. He’s so patient on the podcast with situations that would make me lose my mind, but here he is popping off. Get out the frustration! I love it!

[@Adman-p4j]

If I was listening to people talk about justifying their debt all day I would have a split personality also. 😂

[@tonyalaw8197]

😂😂😂😂​@@Adman-p4j

[@SilverSaabArc]

@@RobDob1569 I like "Dark" Ramit! 😄

[@TonyCox1351]

He’s like all of us…completely nice and mild mannered when talking to people IRL, and a complete asshole to strangers on the internet 😂

[@DavidSmith-wq3wu]

He's like all of us; he contains multitudes.

[@sherrieludwig508]

When I opened my first business, my accountant said, "You make the money, I'll worry about the taxes. Make as much as you can, don't stress on taxes."

[@matthewjurawan9697]

Do we have the same accountant 😂

[@Azeteck]

Always understand what is Happening. Do Not and your so called mistakes will shape into the meaning of destiny

[@thugsy15]

I work with somebody who worries about her credit card debts and always says she has literally zero in her bank account. Then she recently took out a loan to build a pool. Amazing how financial illiteracy is rampant in America.

[@jvinsnes]

A buddy of mine took a loan for a $20k jaccuzi. a month prior he asked me to borrow $80. I just don’t understand how people let this happen.

[@tushiyakey9677]

@@jvinsnes😂

[@msmaluu]

I buy more or less the same thing at the grocery store. A quick run for fruit and dairy used to be $30-40 now it is more like $70. You don’t need to write down every cent to know things went up

[@dancarbone1742]

My millionaire morning routine is listening to Ramit’s new KZbin videos! 😂

[@eileenwatt8283]

😂😂😂stop doing that. Ramit says routine won't make you rich.

[@neodro4831]

Great one!!

[@TheRailwayDrone]

One of the main reasons I listen to Ramit is because he keeps the shit real.

[@robyn_southafrica]

You're brutally honest so I'd take that over sugarcoated shit any day. Thanks!

[@geovanierguera9330]

My parents providing me with “generational wealth” by teaching me to be smart with money trough their example. Thank you for opening my eyes to this truth.

[@michaelburton]

I saved 15 % by switching to geico.. Now I can eat Avocado toast in luxury 😂😂😂😂😂

[@elmateo77]

Avocado toast is an investment in your taste buds...

[@tspencer661]

😆

[@ariella1357]

Nice marketing gimmick 🤓

[@plot229]

Rich bastard😂😂😂

[@dfaro8453]

Geico is an expensive insurance company. There’s no savings in south Florida.

[@wardensworld6308]

i bought a purple mattress. I had the same rough mattress for over two decades and now my back is doing so much better! While true, in all seriousness, i waited for a sale, compared my hourly paycheck, saved the money, then bought during the sale in full. Got sheets and pillows with it. So, took planning.

[@rachelesmith3342]

This content is top tier!! Too many people want shortcuts or miracles but the real answers and truth are very boring and simple. Trying to live a life you can’t afford or be something you’re not will leave you broke and desolate.

[@georgelane9738]

How do I decide if I can afford: 1) $2k mattress - Do I have at least $2k in undesignated cash reserves? 2) $80k truck - Annual income of at least $400k (20% limit), net worth of at least $1.6M (5% limit), and pay cash 3) $650k house - Limit amount borrowed to twice my annual income, financed on a 15 year note (if age 35 or less). If over age 35, then additional cash would be put down so that the monthly payment on a note that is [50 minus my age] would be the same as the amount borrowed on a 15 year note.

[@soumyajeetchakrabarty6872]

The 3 lessons that resonated the most with were 1. Worrying about taxes - That I am currently having OCD with. 2. Think about the 30000 dollar question and not the 3 dollar question - that I have come to terms with after listening to like minded people like you and you have drilled it in my brain. 3. If you want to buy something come up with the number , basically delayed gratification over instant dopamine hit - this is thanks to my dad who was an accountant in an MNC and conservative Indian when it comes to money

[@lesbo37]

As a tax accountant, the tax advice was not good. You absolutely should minimise your tax and be actively trying to do so. To not do so is just as bad, or even worse, than paying financial planner fees that he complains about thanks to his sponsor later in the video. The refund stuff is also garbage, you need the self control that having the extra funds isn't going to be wasted, the idea of letting the tax man hold your money because you can't is terrible. If you can't do this simple thing then you're doomed anyway. It's literally advising to another financially bad thing because you're already bad with money.

[@IQLion]

​@@lesbo37Ramit is not saying that you should not look for tax advice or try to minimize your tax obligations. He is all about increasing income and reducing spending. What the video addressed is people who obsess with how much they spend on taxes and how taxes make them poor. An extra 100 per month is unlikely to help them if they are living paycheck to paycheck, because they have high CC debt. It is more beneficial to get your spending under control and increase your income, rather then spend hours and/or more money trying to save an extra $100 on taxes.

[@soumyajeetchakrabarty6872]

@@lesbo37 This is an insightful comment, however I think a couple of assumptions needs to made, 1. If you pay less than due tax amount then you need to pay a penalty however if you pay little more than the due amount you get a rebate. If this be the case then it is always better to pay little more and get a rebate since you don't need to pay extra. 2. Ordinary Citizens and not well off tends to do their own taxes since they cannot take the extra burden of paying an accountant. If this be the case then there is always a chance of miscalculation.

[@latimer442]

@@soumyajeetchakrabarty6872 According to the IRS website, the underpayment would have to be by more than $1,000, or it would have to involve other situations such as self-employment or whatnot where you have quarterly payments. The trouble with discussing these things is that you have to start with a base assumption of the individual behavior. The same person that can stick to a budget should be able to go without a refund without wasting it. They should also have enough sense to be able to go "Well, I had a 3k refund last year, so if I adjust my withholding bit by bit to eliminate that, I won't drastically underpay by thousands of dollars" On the other hand, the people that don't have the discipline to pay off their cards or follow a budget won't have the discipline to properly manage their taxes. Unfortunately, I see Ramit lumping these 2 kinds of people together in the same sentence without distinguishing them.

[@aprilracine]

I work at Trader Joe’s and I’m tired of customers coming up to me telling me that the prices have gone up so much and it’s killing them. I always ask them do they keep a budget, and they always tell me no.😂

[@ramitsethi]

lmao

[@HerAeolianHarp]

I have a sound conscious spending pla n, AND TJ's prices in connection with shrinkflation are a real problem for me.

[@bmorehead]

@@HerAeolianHarp Agreed, probably should'n't be shopping there if worried about money.

[@aprilracine]

@@bmorehead Fortunately for me, I like beans and rice with lots of veggies and fruit. A lot of people at Trader Joe’s are buying trendy new items that just came out. Having been schooled by the Detroit Public School System and needing to self educate myself about saving and investing and living below my means, it can be hard to have any sympathy for others when I wouldn’t allow any for myself. I’m on track to be financially independent by the age of 49 and I’ve never made over $45,000 a year. However I refuse to go into anyone’s establishment and complain about the prices.

[@Yourmission9]

I hear the same thing all the time from people I speak to, they say “these prices are insane at the grocery store! How can we afford this?!” The hilarity (or rather stupidity of it all) is that these were the same people taking talking points from faux news when they tried to raise the federal minimum wage “If we raise the minimum wage then a gallon of milk will be 15.00!!” So now what we have is higher prices and the same federal minimum wage since 2009

[@dinyahome]

I clicked *LIKE* before the video ends because Ramit says it's ok to watch Netflix after waking up. 🎉

[@TheCoppergoat]

Ramit had to plug in Netflix cause he has a show in the network and its a great one !

[@cur244]

I lived in FL for years and one thing I could never understand were people refusing to work OT because the taxes. I tried telling them not 100% would go to taxes and it got me nowhere. It was unbelievable. The same people blame inflation for why they have $0 in retirement.

[@ramitsethi]

Darkly hilarious. Some people truly cannot be helped

[@mninoskaflores7555]

@@ramitsethi I live in FL, and I never pick up an extra shift. Working as a nurse is mentally and physically EXHAUSTING. I rather have less money, and enjoy my days off working in my garden and walking my dogs. THAT IS MY RICH LIFE!!

[@rory644]

@@mninoskaflores7555what’s that got to do with taxes?

[@stevemaurer2259]

@@ramitsethiwill there be a season 2 of How To Get Rich?

[@Somebodyelse141]

My sister is like that haha

[@Justin_vesting]

Thank you so much for stating the fact that personal finance isn’t so personal. Yes we are all in different positions in life. But I think in the grand scheme of things we’d all like to increase our wealth. Too often “finfluencers” cop out by saying this isn’t financial advice specifically tailored to you. But who is is specifically tailored for? The vast majority of their viewers are in the same position. A 70 year old with 2.5 million is not looking to KZbin for wealth preservation advice. But 18-45 year old working-middle class individuals that typically hate their job and are looking for a way out certainly will look to KZbin for advice. And in that regard, almost all of the viewers would find advantages with general wealth building advice. Plain and simple.

[@jnachtig2]

So true. The foundational principles are universal. Spend less than you make, keep debt to a minimum or zero, invest early and often in boring index funds. If everyone did just those 3 just think of how much better off everyone would be. The personal parts are at the edges and at the middle to end of the journey where you actually have a pile of money to protect. One thing I wish the advisors your say is you dont have to optimize to win. example, moving your money around in a high interest savings account every quarter to get $20 extra in interest instead of concentrating on life and expanding your career is the example that kills me. The amount of electrons killed every month with finfluencers taking about the newest high interest "bank" makes me scream

[@TheNicoliyah]

In my old job I sold property and part of it meant that I had to check peoples ability to pay by looking at their credit scores and bank statements and yeah we are all more similar than you would think 😂

[@eddiemalvin]

As a 50+ individual with a healthy net worth, I still follow the most basic financial principles that I learned in my early 20s. They're what got me here so why change it?

[@amandalashua7684]

Your videos are so much better than other financial people on the Internet. As someone who grew up poor with parents that had very bad money practices it has been extremely hard to transition to having money and not knowing wha to do with it, so many people out there helping people out of debt but so few people tell you what to do when you get out of that lifestyle look around and go what do i do now? I was shocked at how unprepared i was 2 years ago when i got rid of my debt got a raise and was just completely paralyzed. My SO helped me alot having grown up in a family with very good money practices, he helped me find your channel. Is it wrong that I watch your podcast, see how these people live and think to myself I am ok and have my shit together? 😅

[@user-po9ne6tx1c]

Lowkey I knew all of this already but it's nice to get a gentle reminder. Thanks!

[@aprilracine]

Gentle 😂

[@tekneiq]

Ramit's ad transitions are legendary. Only KZbinr I actually actively pay attention to their ads.

[@garettkemp4927]

Bro, you are the man!! There is a lot of information out there that we, as a population, need to search for. It's nice to have some knowledge dropped on us.

[@cathybawlf7282]

So many people on the internet shilling luxury items as “investment pieces”. They’re not investments! Thank you for calling this out Ramit!

[@michaelavery3964]

[@fargnbastage]

Well...inflation is up. I do keep track of my spending at the grocery store and make an amount where I really don't have to worry about what I'm buying. However, I grew up with immigrant parents who taught me the value of a dollar. Dog food is up $12 from 4 years ago. It spiked $10 in just a year since Covid and $2 over the past 12 months.

[@hikingpeaks4377]

Dogfood😂 wait for the vet bill and dogsitting expenses!

[@fargnbastage]

@@hikingpeaks4377 I've got family to watch my pets when I travel. Vet bills are only expensive the few and rare events they get sick. I only pay for rabies vaccine which is cheap. flea/tick meds haven't really gone up. Grooming prices are about the same. Dog food is something I buy on the regular so it's why I mentioned it. Just shows that inflation for services haven't really been impacted. Goods, however, have been impacted heavily.

[@stevemaurer2259]

“Spend guilt free on the things you love, and cut costs mercilessly on the things you don’t”

[@fargnbastage]

@@stevemaurer2259 100% I'm just pointing out inflation is real, much more than the normal 2% we've been use to.

[@fargnbastage]

@@hikingpeaks4377 I have family to watch my pets when I travel. Dog food is something I am buying constantly, not a here and there purchase. Vet bill and grooming have stayed pretty consistent over the past 5 years.

[@chrism9037]

Someone’s corn flakes were soggy this morning. Ramit telling it like it is 😂

[@withthetrans]

it's the best 😂😂

[@danwilliams6206]

Gratitude journals or just thinking about things you are grateful for is important. It's so easy to take good things in your life for granted; being grateful is key to a happier life.

[@lkumar4295]

💯!!! Many are “winning at the wrong game.” Love your straight talk!

[@abhijitbidwe1878]

I like that "decide how you can afford something". I started doing this in my late 20s and it's a great habit for any young person to develop. Now, I can even plan for something that I really want but can't afford right now. Run the numbers!

[@user-ny4qe8zb4j]

Ramit is the best. Im not concerned that the cantaloupe water people are going to revolt

[@JCizzleSoCal]

I agree with most things on your list but let’s be clear that INFLATION is real. My household spending habits have remained the same for the past several years however I have noticed that the cost of insurance, groceries, eating out, fuel, transportation, housing, utilities, etc. have all gone up significantly. I have receipts and bank statements to prove it!

[@motoryzen]

Yes inflation is real AK the declination of the value of the dollar. This has been a fax it's guaranteed within the first quarter of the year 1914 vastly thanks to an idiot named Woodrow Wilson who pissed away the power of our currency on officially December 23rd 1913 off the coast of Jekyll Island when he made a deal with a bunch of foreign bankers giving them the power to print and control our currency with what he dubbed as the Federal Reserve Act. And this has nothing to do with our own federal government and this this act this deal was never legally voted upon by Congress which is supposed to be the voice of the people Ron Paul spent many decades as a Texas Congressman trying to educate any and all political Powers coherent enough that would have the power to finally put a stop to this crap but not enough nor anyone would listen. John F Kennedy was the last Obama understanding by memory the only president who tried to do something about that with the executive order of 01111 or 11110.. Notice one thing that's a coincidence or it may not be in my opinion that he was assassinated not even 6 months later. What's one of the first two or three things that Lyndon B Johnson did when he took office, reverse that executive order This literally would have struck at the heart of the vast majority of all debts that our nation owes and I'm willing to bet today even if our nation was in debt it would nowhere nearly be big as it is had Ron Paul or JFK's Mission succeeded

[@Chris-os5zd]

This was his worst take. People are not complaining about inflation because some podcaster told them it was a problem. They are complaining because it’s a very real and obvious problem that everyone can see ( at least for those who can’t afford $250,000 for a bathroom remodel).

[@AdrienneMcheapo]

Thanks for the call-out on taxes. I blew off that barb, and paid off my mortgage. I feel free!

[@jeanineweise]

Your view on taxes resonated most. I also agree with you about morning routines!

[@thewickedpen]

I had to laugh when you said: "Follow the basics and once you master those you earn the right to be different". It's literally what I would say when I had a training guild for World of Warcraft! Show me you can make the template work, then you can deviate. It's a lesson I learned from WoW, and it's very applicable to a multitude of situations in the real world. Thought others might get a chuckle out of this.

[@wineladycandace1134]

Ramit this video was brilliantly done! Thank you! Just the right amount of being passionately pissed mixed with humor to get the message through. Generational wealth hit home with me. My parents died and left me nothing. Of course they were never good with money which made me hyper vigilant about learning about money. I like how you point out that just teaching my kids about money is also passing on generational wealth. Again, great video. Thank you!!

[@cherylvargas8861]

Brutally honest: Wake up 5 a.m.and watch KZbin!! I'll make my pre workout drink, yes it's Bucked Up. Maybe eat an apple or be later on in the morning. I'm living and working on my rich life!! Yes I been tracking all my finances. Learn to pay off debts and invest for the past three years and I'm Blessed Beyond Measure!!

[@stainsonmycouch3655]

Lit af gummy worm, tastes better 🐛

[@Squintillions]

I seem to be on the opposite schedule as Ramit. I get a lot done in the morning and couldn’t stand to watch Netflix that early, but I am practically useless after about 4pm. Glad he mentioned about the marginal tax rate. I am surprised by the number of people I come across who don’t understand it.

[@barose1]

I am the same. After 3:30 PM I am done but I get up at 4:30 AM to go to the gym and commute to work.

[@chocolatemint9225]

Generational wealth used to mean community service as well. It meant you were supposed to use your money, influence, and connections to help the arts, those that are less fortunate or special causes. In 2024 wealth seems more about just hoarding it and flaunting it.

[@ramitsethi]

Yup. Disgusting

[@eddiemalvin]

Don't let a few greedy folks spoil the idea of "Generational Wealth". *True* proponents of generational wealth view themselves as the custodians of their families wealth rather than the sole owners of it. They seek to ensure a smooth and efficient transfer of that wealth to help improve the lives of their family, friends and/or community members. I think it's a beautiful way of approaching wealth vs. buying a bunch of stuff that ends up in a landfill.

[@beefrempong]

I’ve thoroughly enjoyed watching your Netflix segment, and since then I’ve been hooked to your content. I appreciate your brutal honesty. I can relate, coming from someone who is always told how brutally honest I am. I’ve learned so much from your content, and since then; I have started a plan for my rich life. Thank you for all that you do. Your wisdom is much appreciated!

[@sp4hybridized]

Affordability questions: you can afford the mattress if the money is coming out of house bills/maintenance, guilt free spending, or money saved for this purpose (assuming you have no high interest debt that needs priority). If you have to put it on credit or financing, you cannot afford it. For the truck, if it is 10-20% of your annual income then you can afford it (so minimum 400k annual salary for 80k truck), and you could save the money over 1-3 years to buy it outright; if emergency replacement, you can finance it if you're paying 10% of your monthly salary and will have it paid off in 1-2 years. You can afford the house if over a 20 year fixed mortgage with x interest rate combined with annual taxes, HOA, and any other local fees, the monthly cost is less than 30% of your monthly income.

[@lovelyyoori4265]

Best video ever, Ramit is a sage. Ramit’s angry voice would be so motivating at the gym lol… Love the advice on generational wealth- knowledge is wealth.

[@loganocchionero6621]

Shoutout to the dads that got us investing when we were teenagers. They don't get enough credit for this stuff

[@sailorz3]

Not sure how I've done so well in life, but maybe it was. I need to do the opposite of my dad. When I was a teenager he was gambling his paychecks at the casino.

[@nathinger]

Hell yeah to the taxes comment!! Literally the reason WHY this is a great place to live and work.

[@tommymack3210]

Just don't get seriously ill..😅

[@shadowninja6689]

The worst part about the "the US has the highest taxes" lie is that taxes are at a historic low today. Given our deficit & national debt situation there's every reason to believe that taxes are going to have to go up eventually just to pay interest on our debt.

[@prettybrwneyez7757]

@@tommymack3210exactly

[@problematicpolarbear6065]

THE PEN WAS INNOCENT 😢 !

[@HerAeolianHarp]

I appreciate the 30k q's and the idea that generational wealth is more about teaching kids good money habits than handing them money. Thanks, Ramit. I enjoyed this video, which harkens back to some of the tough humor in your book--good advice and actually an enjoyable read.

[@sparkleparticle]

Riled Ramit is exactly how I need to hear things sometimes, thank you!

[@amandascharf3870]

Oh my, I love this so much!! I am constantly telling people that my grocery bill has gone up 11% over the last SIX years--and I went from having elementary school-aged children to two teenage boys in that time, so I KNOW that they eat more now than then. But people just tell me no, no, no, I MUST be wrong, I MUST not be buying the same stuff now as then. Which, true--I try to avoid the prepackaged food more now than then. But I know that my bananas and cilantro are virtually unchanged in price over the last 6 years. Because, yes--I track it.

[@ExpansiveReviews]

The worst investment I made was buying an individual stock my uncle insisted would do well. It’s a lesson I learned the hard way 😅

[@jnachtig2]

that is a valuable lesson. I am the uncle that gave my niece and nephews $1k. They got to pick and individual stock with half and a SP500 fund with the other half. Just so they could see the difference. 10 years later it was a lesson they could not ignore.

[@TheCoppergoat]

Shoulda bought NVDA stock😂

[@excitedaboutlearning1639]

My aunt recommended I buy a pharma stock. I bought it. It wasn't the worst possible investment as I made about 4.5% a year for the seven and half years that I owned it. The price of the stock was down up to 25% at times. Without dividends it would've been way worse. I barely broke even stock price-wise. BUT when compared to an S&P 500 ETF or MSCI World ETF, my return was horrible as I would've more than doubled my money had I invested it in one of the said indices via an ETF. When I made the investment - which was my first one - I didn't know index funds existed. My aunt's piece of advice was to invest in stocks that pay a high dividend. I've since learned that what matters is not the dividend yield but the total return compared to risk (risk-adjusted risk + understanding the difference between compensated risk and uncompensated risk). The only other individual stock I invested in was Coca Cola. I invested in it before I knew about index funds, too. It has done decently. But it has still underperformed compared to an index. When I bought the stock, I decided I wouldn't sell it before I turned 50 years old. So, I'm keeping it. It's less than 5% of my portfolio. So, I'm just going to keep it. Rationally, it would make more sense to sell it, but I'm going to keep it anyway as reminder that individual stocks will most likely underperform indices as well as keeping my promise to myself.

[@cbcbcbable]

A little more than halfway through this video and I think it’s my favorite of yours yet!

[@ChristianSchaffer]

I really appreciate these candid talks. Especially the bit about taxes, and trying to time the market. Recently learned that last one the hard way, even though I heard you warn against it about 50 times. Won’t make that mistake again haha

[@ryebread447]

Can u afford the 2k mattress? Do u have automated savings rate of at least 10%? A fully funded emergency fund 3-6 months if a stable job or 7-12 months for a less reliable job? Do u have discretionary funds saved to where u can pay for it twice? If yes, buy it. -IMHO

[@Adman-p4j]

Well said. I had a FEELING about making this comment but I knew Ramit wouldn't accept that. 😂

[@MsGenXodus]

Track your spending! This information is extremely valuable. If you don’t know what you’re spending on, you won’t know how to eliminate the excess in your budget.

[@charletfoster8917]

Ramit, thank you for busting these crazy myths, thank you 🙏🏿

[@GroovyCycleworks]

Best life/financial advice this year, thanks for being honest and blunt… subbed!

[@christinasaywon155]

The $30,000 questions rather than the $3.00 ones … MAN ! Thank you!

[@jodeanoconnor6906]

Ramit, can I just say that I loved this video?! Refreshing, honest and down to earth. The crutches, the excuses and the money myths people believe is hair pulling. If a situation is continually getting worse, then obviously something is wrong and needs to be changed (course correction). The importance of self educating, critical thinking and being open to try new things, can't be understated. Thank you for the laughs and breath of fresh air ❤

[@ruffethereal1904]

Thank you for that bit about being happy to pay taxes. Folks out here believe that they personally paid for the roads, the public infrastructure, the reputation with the international market, and all the regulations that ensure their products are safe and labeled properly, they have a weekend and labor protections for their job, and that there's important, boring work being done in the background that we'll never see. As Oliver Holmes said, "I like to pay taxes. With them, I buy civilization."

[@TheThreatenedSwan]

That's his most asinine take. The government is extremely inefficient and haphazard with how it spends money because it has bad incentive structures. Rather than patting yourself on the back as if that's a good thing and we should actually spend more money for worse outcomes, we should try to align the incentive structures more toward better outcomes. You can look at almost anything, crime, health, education, where the amount spent could be slashed and we could have even better outcomes. Crime especially because it costs trillions. Those are probably gross underestimates due to downstream effects, and most crime is done by a relatively small number of people

[@ruffethereal1904]

@@TheThreatenedSwan I've seen changing incentive structures from the government to the private sector and it resulted in both the US healthcare and prison systems. I'd rather stick to government. What is your idea, anyway?

[@TheThreatenedSwan]

@@ruffethereal1904 Having the government do everything is not a panacea, and you do know the US has a bad underpolicing problem, right? And when policing is cut, it's the "oppressed" communities who are most affected. Locking away violent criminals=less victimization

[@ruffethereal1904]

@@TheThreatenedSwan You didn't answer my question. What is your grand idea of changing incentive structures that would work better than government? Where is your theory? Where is your experiments, if available? Because a good idea would generally have people trying to study how to do it better.

[@soumyajeetchakrabarty6872]

This has been very very insightful...... listening to you is an investment

[@hunchung2172]

I see lots of great wisdom to be gained from this video. The points I liked the most are the ones related to [1] not buying stuff you really can't afford (especially status symbols) and [2] focusing on building wealth in a diligent manner, the boring-but-correct way. Something I'd add is to question yourself for a clear and honest understanding of why you want to build wealth. This requires some introspection. And, once you have an answer to that question, never lose sight of your purpose. Personally, my desire for wealth is for the peace of mind that financial independence can offer to myself and my family so that I can be master of my own time and my of my own life.

[@davidtibbetts6274]

😂 A few years ago, I went to a urologist because of an injury. I was 55 at the time. During the exam, he asked me how often I woke up at night to urinate. I told him, and he said, "That's a lot. How much water do you drink each day." I answered, "12-18 glasses a day. He asked me why l was drinking so much water. I said, "That's what every health expert says to do for health." He snickered and replied with this: "Your body already has a mechanism for telling you how much water to drink. It's called thirst. Drink water when you're thirsty." I took his advice, and now I don't go to the bathroom so much after falling asleep.

[@aking1196]

😂😂

[@audisiojunior21]

One of the best videos from the channel. You can actually right a full book on this video alone.

[@MoneyVikings]

Keeping it real Ramit! Right on. Love your tax analysis. My grandfather never minded paying some reasonable taxes, it meant he made money and supported our country.

[@fredfinger7092]

How do I decide if I can afford a $2,000 mattress? 1. No mattress is worth that. 2. I can't. That's how I decide if I can afford it. The truck? Same answers.

[@diptisingh6762]

Love it! No meditation, journal, or drink a boat load of water! 😂❤

[@jrbrannan]

The answer to your affordability question to me is fairly easy. For the mattress and the truck I would say if the buyer has a fully funded emergency fund, no debt, saving 15% of their paychecks or more and can pay cash for the truck or mattress then they can afford it. For the house it is the same as above plus 20% down and no more than 35% of your take home for housing costs.

[@luisdiegocr]

a person in that position should safe that cash of that truck and invest it, grab more cash of the same amount and invest it, doing that some 3 ~ 4 times you will have investments that can pay the leasing of such truck. Affordability of very nice things have to come not from your income source, but from the investments returns of your income source. That is were you can really afford it

[@andresgarciacastro1783]

Matress and shoes, I don't save money. You will spend 99% of your life in either one of those.

[@StevenChristenson]

@@andresgarciacastro1783 The question wasn't "is it worth it" the question is: "How do you know you can afford it?" Lots of worthwhile and quality things are unaffordable absent the right plan (income, savings, and spending). I know someone who leased a $1k / mo vehicle while already in $60K of tax debt AND also unable to cover basic expenses. Also, to point out some errors: unless you sleep with your shoes on or are confined to bed all the time, 66% is the most time you will spend wearing shoes. About 40% of your life - assuming you get 9 hours of sleep a night - is what you'll spend in bed - unless your bed is also your couch, and easy chair. The number 99% is the kind of rationalization that gets people in financial trouble. The better plan is to buy a pair of shoes and a mattress you can pay for outright in cash now without going into debt or jeopardizing your financial future. When your situation improves you can buy a better mattress and more shoes.

[@nr6010]

I cancelled all subs I do not use…after that I realised I could afford a $50 a month Gym that will genuinely give me health benefits. 0 changes to my finances but a better life. Cut back on takeaways, focused on fresh groceries and planning meals for the week. The money saved goes to buying my clothes, outings, and spending money on vacation Still earning the same (since I started a few months again but due to change in a few more months) but so far, I eat better, I am healthier, I have more money And continue to save 15% of my income for my investments & emergency while slowly paying off my credit card debts. With the rest going on necessities & what I enjoy…. Life has never been better, less stressed and more in control. This guy…literally changed my life

[@rene9892]

Ramit, your angry advice is absolutely great. Thanks for making your core philosophy so graspable to us.

[@gabrielabaerga822]

Thank you, needed this

[@marialopresti8890]

amazing perfect in every way great way to start my day. You help me so much keep on making these podcast 😊

[@atowari]

The lesson on not trying to time the market resonated with me the most because I needed the reminder that as well as I think I’m investing/can invest, I’m not Warren Buffet, so if I’m planning to buy a stock, I should just buy it. At the end of the day, if the aim is to be a long term investor, and you expect that stock to rise and create wealth, timing whether it’s up by $1 or $2 in a day shouldn’t make too much of a difference in the long run.

[@sunshinejuliannetv]

Great video! I may have missed this- when he talked about #6 and what you can afford, how do you calculate if you can truly afford it if not based on the monthly payments? Ramit mentioned "running the actual numbers". Thank you!

[@masterfiddler11]

Yes, inflation is not destroying our grocery bill!!! I tracked my groceries expenses 10 years ago and today - yes, they’ve gone up, but not at a doomsday rate. So glad Ramit mentioned this!

[@maiaheiss2991]

It’s a doomsday rate for people who have less money than YOU, which is a large part of the demographic. So it effects things economically on the broader scale which will effect you subsequently, it’s just not effecting you personally. Good for you.

[@krisg2355]

I agree that groceries haven’t skyrocketed. I spend about the same if not less than what I spent 4 years ago. Planning and limit junk food is key.

[@bmorehead]

@@maiaheiss2991 No its because most of the people are not intentional with their spending and buy crap.

[@BTrain-is8ch]

​@@maiaheiss2991 "You don’t find out who’s been swimming naked until the tide goes out." A lot of people have been swimming naked and want to sell rest of us on the idea that their current predicament is through no fault of their own.

[@mmmd3429]

​@@bmoreheadPeople who make less money are failing to adjust their spending. You're dead on about them buying crap, you can see in real time at the store.

[@LiamRichie825]

Ramit, you are so right about most people’s situations not being all that special. I work for a student loan servicer and if I had a dime for every time someone gave me their whole life story for five minutes when it has nothing to do with what I’ve asked and could have finished the call in that time, I could pay off everyone’s student loans.

[@semajsemaj9280]

Thank you for your honesty and hard truths we all need to know about money as well as your sense of humor 😊

[@i.m.7777]

Truth! Unfortunately I already found out the hard way... put in $118k into home renovations and when it came time to sell, appraisal came in very low. I will never renovate again unless it is for extremely good reasons other than to "improve" for improvement's sake.

[@bmorehead]

I've sold multiple houses and primarily renovate myself, replacing flooring and painting. Get it inspected and fix anything that's reasonable before it goes on the market. The main thing people want is a move in ready home. I've never spent more then 10-15k before I sell. The only home I ever felt was a loss was my first one I bought in 2007 that just never got back to the price I paid and I finally gave up and sold it, was able to rent for about 14 years and the people that bought it took it "as is" and wanted to put renovate the whole thing because they bought it as an investment. I was like good luck and good riddance.

[@coreyburke3493]

It makes sense. People renovate often based on things they want or need. But the next person may not care or may want to put their own spin on the house so paying extra for things they plan on replacing isn't reasonable.

[@lightweightben]

We spent more than that renovating, but at least because we wanted the place to live in for us, not for profit. We had the place revalued and it came in at what we paid for the place, plus the cost of the renovations. Sounds like break even, but I did a lot of work myself and if I had paid myself for the time, I’d be at a loss.

[@coreyburke3493]

@@lightweightben I think we would all be better off if people had your attitude. We should buy homes because we want to live in them not because it's an investment.

[@sailorz3]

You renovated for the wrong reasons, I'm renovating my house right now. I plan on living on it in it for 30+ years and then willing it to my children. My renovation's going to make my life extremely comfortable in this home and into old age

[@liliane_c]

I think the idea of buying something because it's an investment when in actual fact it's a luxury, is genius! I will try to remember this!

[@GabyT]

This is why i prefer to watch you then those big finances youtubers 🎉❤

[@connie0613]

Ty for real advice! Need it!!!

[@belnananana]

Love your content, keep going!

[@janaynmelis5250]

Your brutally honest moments are my favorite. 😅❤

[@highonsmog]

After watching Gaza getting leveled, I look at taxes very differently. Taxes are across multiple categories, not merely Federal. Besides state taxes, you have property and sales, let alone the weird windfall taxes, gas taxes, fees and assessments. I'd say, everyone is contributing multiple ways for the same result. Those complaining merely need to efficiently get something of significant value in return. Lets take retirees: they earn 12,000 to 30k in pensions and social security, yet will usually pay 5 to 6000 in property tax. That's at least 30%. So, you often have folks living in trailers, broke, no capacity for further education (either mentally, or situationally), complaining of intractable poverty, and taxes. It isnt the tax that is the issue, but the lack of return they enjoy accross multiple forms of payment. That 1% to foriegn aid, like the portion for Israeli bombs, is nothing to you, but a few dozen billion will go a long way in any poor area of USA, or at least to educate, be kind, and de-prison the Gaza population. Again, taxes aren't the problem. The resentment stems from how they use it.

[@Sunshine-wn4eg]

Great video Ramit. I just got your book. Excited to read.

[@anthonykrystek3239]

One pf the most honest and to the point videos out there.

[@cluelessxbelle]

$2,000 mattress: Can i save up before i need it? $80k truck: Even if i could afford this, i didn't care enough about cars to do this math ... But probably, can I buy it outright? Or pay less than 10% of the total value in interest (pay off very quickly) $650k home: Can I afford to put enough down so the monthly mortgage is less than 20% of my take-home? Can I afford the potential increases in insurance, property taxes, or maintenance? And is the opportunity cost worth the personal satisfaction?

[@jeanettecaines8096]

Thank you for always being honest. I read your book and had already implemented many of your recommendations. Will continue to get financial educated.

[@RB-rx6hr]

Love your straight talk (with no chaser.. lol) ! 💯🔥

[@dietzyfly]

I loooved the first one...hilarious😂 There is so much snake oil and huckstering on the interwebs. Everyone is an expert. Thanks for being a genuine, real, intelligent human with actual information.

[@Nb61777]

11:15 that’s a really good question. Don’t know what’s the best way to decide but I would start with: (1) do I have the cash, yes or no. (2) if yes, how much liquidity will I have left after purchase and am I okay with giving that money. (3) if no, how much leverage would I be taking on with financing and am I okay with the payments.

[@easternacademy]

I've wasted hours watching Ramit's videos. This one is not a waste, though I already know and apply most of the information. The point on tax avoidance is one of my favorites. I would, however quibble with the idea that focus should be on the big expenditures at the expense of small. I contend that every expenditure should be scrutinized. However, It should take seconds to decide which cut of meat to buy at the grocers. Those quick decisions quickly add up. Making the similar small decisions repeatedly is just as significant as making one big bad decision.

[@JStephenYoung]

Duuuuuude! this is the first and probably only time I will ever pause a freaking, insanely, amazing, no BS KZbin video to 👍in the comments... Every KZbinr and wanna-be YTer should watch this ENTIRE video - THIS IS HOW TO DO IT PEOPLE. OK, now back to the video. I have some life changes to make. Thank you Ramit.

[@chelseymichelle]

Love this side of ya, we need the cold hard truth sometimes!! Best parts for me were #6 & 7! Thank You!

[@griseo3300]

Personally, to answer the mattress question, it's not about how I know, it's when. I make 14 USD an hour, after taxes that's like 900 bucks biweekly. If I saved around 15% of my check each paycheck, that's 135 dollars. Divide that by 2,000 and in 14 paychecks or 7 months (barring some months where I get 3 paychecks). For reference, most buy-here-pay-heres usually have an offer with a similar structure. Pay it off in 6-12 months; except in this case just saving the money and buying later you pay no interest or fees.

[@deehope6186]

LOVE THIS!! On point!!!

[@NikkiLee0076]

FACTS!!!! So good. Brutally honest and much needed. #10 gave me a slap on the hand. I auto invest but I also attempt to time the market. Thanks!

[@Azel247]

11:11 That's a great question Ramit. I guess for "smaller" things like a mattress or even a car, I can afford it if I have the cash to pay for it without selling my investments. If I don't have $80k for a truck, can I save up that amount in 1 year and pay cash? If not then I can't afford it. For a house, I aim for a 30 year mortgage + property tax + insurance + maintenance that's below 30-40% of my net income.

[@lilio6442]

Love these!!!!

[@NancyRichmondTarot]

Great video! Most people don't want to hear that they don't have a clue about money and they sure don't want to be accountable or responsible. I'm a fan of keeping it real.

[@rebeltheharem7028]

Inflation is killing me. I used to be able to buy 4~5 corn hobs for 1 dollar, now I'm lucky if I can get 2 for 1. And tomatoes, when was the last time you saw round tomatoes for less than 50 cents a pound? Oh and gas, man, I remember when it was less than 2 dollars when I was a kid. And don't get me started about burgers. I remember when A double stack at Wendy's was .99. Now? In the span of 1 decade, the price of everything increased by 100%, and fast food by 200%. That's crazy high. I recognize I'm an exception. I keep a mental track of prices on things I buy all the time. All of these things don't apply to me because I'm slightly crazy and manic. I even keep a tight double entry level accounting spreadsheet for my finances due to it, so I know exactly how much I have in all of my accounts, at any time. Now that I've typed this out loud, I think I should probably relax a bit on some of these things, since I'm not living in childhood poverty anymore.

[@StevenChristenson]

Those numbers are most relevant if your income / savings / investments haven't grown proportionally. Inflation has always existed. Rising fast food rates are linked to grocery costs, minimum wage hikes and in some cases corporate greed.