4 Truths Why Americans Struggle to Build Wealth (And What to Do About It)

[@ShibaInu4Me]

My uncles became millionaires by saving money early. They told me to "pay yourself first" and I followed their advice. I started to save in my 30s and lived below my means. I am 68 and retired 9 years ago.

[@daveg2545]

Well done!

[@lmr691]

You listened to wise advice. I,too, heard that advice when I was in my 30’s. You will be well off in later years!

[@kburkes4245]

The old system worked well for me too. Unfortunately that is no longer the case for younger people.

[@damienbates]

Why not? I don’t see any issues with the foundational principles. They seem to still hold. Is the issue that you’re envisioning our current state as if it will not change over time. Historical precedent seems to infer a cycle of ups and downs. Good times and bad times. I mean we had two world wars and yet our country came out well on the other side on both occasions. Housing will change, healthcare will change, technology will change, politics will change, population will change and so too will our economy. Let’s not be short sighted. My 83 year old mother was born very poor to a large family in the backwoods of Louisiana. She’s had a large family, put three husbands in the ground and retired a millionaire. She’s extremely conservative with money but learned to invest through her spouse’s. It can be done and you don’t have to be a genius to do it.

[@jacqueslee2592]

@@kburkes4245 If people stop consuming and stop thinking of profiting from housing, then it will normalize. Overconsumption is the cause of why most people today have nothing and is the reason for inflation because overconsumption creates scarcity that the elite want to inflate prices.

[@garyfarley323]

It's because “We buy things we don't need with money we don't have to impress people we don't like...” the bottom line is "The biggest thing you can do for yourself is not care about what other people think. That will make you free...and that's why Americans struggle to build wealth!

[@scottthomas1894]

Great discussion Erin. You are absolutely right about the dual income and sharing your life with someone you love. I was married for over 35 years before my wife passed away from pancreatic cancer. We had a great partnership. We discussed our finances regularly and saved and invested a significant portion of our income over the course of our marriage. My retirement is totally secure but very lonely. Finding the right person is the key to a happy and secure life.

[@thehospitalguy1657]

Choosing a partner is very important. I was married for 13 years to a woman that spent more money than we made each year. She managed the finances which was another mistake, I think both the husband and wife should be on top of the finances for the family. Because of our situation, and me looking into our situation, I put us on a budget to get back on track. That wasn't something my former wife wanted to maintain. We ended up divorcing, with no assets to split up. Three years later I Remarried someone that was living bare bones. She was a single mom doing everything on her own. We both together focuses on that as a way to live. We saved our money and we were able to buy a home together. We built a financially secure lifestyle and have since raised our combined 6 kids. Our 403B accounts are on track. Life is good.

[@michaelswami]

@@thehospitalguy1657 same boat here: I used to sadly joke that I gave my ex an unlimited budget and she exceeded it.

[@michaeltewes7833]

​@michaelswami If my x saw an extra $10 in the checking account after paying the bills, she was off to the mall

[@matthewowcarz8259]

My dudes. Same. And then she dragged out the divorce to extract even more out of me!

[@METVWETV]

​@@matthewowcarz8259 They do that... DON'T LET THEM!! Settle and move on, even if it's in their favor. In the end their wicked hearts will destroy them and you'll be at peace

[@reedb1961]

Just started following your channel Erin. Very good points today. One topic that is a little more basic than what you listed (and maybe you have covered this in earlier videos) is budgeting. Most people have no idea what they spend their money on each month. The only way to get to the point of having money to invest and build wealth is to quit spending money on things you don't need. It took me way too many years to figure this out. And it is a constant process. How much do you spend at the grocery store, on alcohol, on cable TV, on cell phones, etc.? You have to drill down on every expense and cut out those things you don't NEED. That in turn makes more money available to invest.

[@RS-lw9cd]

Another sensible, good informative video. For most people, it is a matter of contributing consistently and EARLY to a retirement fund...and I mean consistently...and then not spending it. Let compounding do it "magic". For instance, if a person making $75k a year is working for a company that has a 401K that has a company match of 4%, if that person contributes just 4% (and gets the 4% match), that person will accumulate a substantial sum in the 401K plan. If invested in the S&P 500 index for 30 years (historically a 9.67% return), the retirement fund will grow to $1,053,695. Again, the key is to start early and contribute consistently. I just wish I knew this when I was in my 20s. That first dollar contributed is worth so much more than the last dollar because of the compounding.

[@1981lashlarue]

That's why Einstein called compounding interest the 8th wonder of the world.

[@hanwagu9967]

Agreed about comprehensive financial education. The focus seems to be investing for the sake of investing, which is only one part of building wealth. Business Insider posted a YT video a day ago, "Money Lessons From Older Americans Who Learned The Hard Way | Business Insider," which is a sobering take on the lack of comprehensive personal finance education, even for those who invested and saved.

[@Emthon]

Good points about finding a partner for the future. We found each other over 40 years ago and we are now very comfortably retired with two great adult children. We both, early on, agreed to be frugal, save as much as possible, enjoy life with and without spending money and trust one another on financial decisions. Of course, there are countless other benefits that go beyond financial. It all adds up to love… Happy New Year and great success going forward.

[@ErinTalksMoney]

So true!! Happy New Year!

[@stemikger]

I need a thousand like buttons to describe how great this video is. Everything Erin said here was a home run. It really does make a difference who you marry. I'm an old married guy 33 years married, but my wife was always on the same page and I don't think I would have done it if she wasn't. It would be like fighting a losing battle if your partner is not on the same page. What really scares me for the younger generation is the social media they consume is about Crypto and other get rich quick schemes. They all are watching the infuencers who promote this. Ignore them and watch people like Erin (who in my opinion should be the number 1 Money Expert out there) (i.e. books, Netflix show, etc.). I watch a lot of this stuff and she is my new number 1 with knowledge and presentation . Bravo Erin!

[@MrGrumpy1]

I too am married 33 years and my wife and I are pretty close to having the same ideas about money. When I started working, I realized I needed to teach myself how to manage my money. Back then (pre-internet) I read MONEY and KIPLINGER'S magazines. I still do 37 years later, even in retirement.

[@iflyabus320]

You're ignorance over crypto is disheartening

[@mysticaltyger2009]

@@iflyabus320 I think I'll disregard commenters who don't know the difference between "your" and "you're".

[@iflyabus320]

@@mysticaltyger2009 lemme guess... your gal lost. Such a shame.

[@lukehanson5320]

Engagement comment for Erin. Happy Holidays, and keep up the great work!

[@ErinTalksMoney]

Happy Holidays!!

[@Andy28-m6e]

Yes, I lived the first few years of my career at my parent’s home. Saved a lot of $$$$$ doing so.

[@LostInThe0zone]

Erin, you do a great job trying to educate the masses regarding saving for retirement. But you know the old saying, "you can lead a horse to water, but you can't make them drink". Still, keep up the good work!

[@nathanyoder4509]

I am so glad we have you making financial education videos Erin!!

[@ItsAllHis]

As a new KZbin creator your bloopers encourage me so much!😂 Great content!

[@mysticaltyger2009]

I think the biggest thing that throws people off track is who you marry and/or have kids with. When you look at people with money, they typically: 1. Don't have kids outside of marriage. 2. Didn't have kids before they were 25. 3. Are less likely to divorce. 3. Are married to someone who believes in spending less than they earn.

[@dstevens518]

This is an inconvenient truth to the majority that believes in love, kismet. They see it as transactional, that you're filling a position and not looking for your soulmate. But if your soulmate likes to blow through cash, you're destined to work forever.

[@DavidWrasman]

Erin I really enjoy your posts and find your advice to be rock solid and very well researched. I also just love your bloopers at the end. Happy New year to you and your family. 😊

[@curlyfries5095]

Excellent info Erin. I was one who didn’t take savings seriously until my 30’s. Then my employer started offering a 401k which an older fellow employee urged me to take advantage of. I took his advice and now I’m 5 years retired with a nice retirement fund built up. If I had ignored his advice who knows, I would probably still be working. If one can and is able to start saving do so. It does as you said take discipline to save and invest. I urge others not to wait. The best day to invest really was yesterday! Thanks for sharing!

[@ErinTalksMoney]

So true!! I hope you are enjoying your retirement! 😊 Happy Holidays!

[@curlyfries5095]

@@ErinTalksMoneyThank you Erin! Happy New Year to you and yours! 🎉

[@ReneeParsons-vu1hi]

Thank you.

[@lint2023]

I thought about money well before the internet age. I only ever got one friend to think about money. She thanked me years later. I wish more of my friends had listened and I wish I had brought it up more. The one point that I told my friend is that she was already living on her wages so why not just put your yearly raises into retirement investment. That made her think and jumpstarted her efforts.

[@erictcarrollcarroll1108]

Yes, VTSAX at Vanguard does have a $3,000 initial minimum, but they offer several mutual funds with only a $1,000 minimum. Someone could open one of those accounts with the lower entry point, contribute to it regularly, and when the balance exceeds $3,000 exchange that fund for VTSAX or any other fund at Vanguard with a $3,000 initial minimum.

[@glenn71144]

Erin says it all at the beginning of the informative video. "Discipline."

[@paulg2132]

You touched on my beliefs toward the end of the video but I believe the elementary basics need more coverage. Basic knowledge of how to budget your money, how to save and how to get out of a poverty mentality are keys to taking the first step toward financial well being.

[@charletfoster8917]

This video is very empowering💎, 👍🏿 reminder to keep investing!!!

[@ErinTalksMoney]

Thanks!

[@shawnbrennan7526]

Excellent description of the challenges. Not sure I noticed any solutions. I wish I had some ideas that could be implemented community-wide to help better educate those who really need it.

[@lint2023]

Update: I just searched and found your video on this topic. It answers maybe all of these questions I posed. One Q not answered was whether or not the older portion in the Roth is accessible while the newer conversion is locked for 5 years. I am 69. Roth conversion as a possible video topic. I should have searched whether you already have a video on it before starting. I have nearly 4 times in my traditional IRA as to my Roth. Possible Q's: If converted, is that when the 5 year period starts for which you have to pay taxes on withdrawals. Maybe you cannot withdraw during that 5 year period. ? Is it taxed lower for the conversion thereby making it beneficial to convert? Upsides and downsides. Thanks. Love your videos even though I am post work.

[@miken7629]

Most Americans didn't pay attention in Algebra, the basic equations for mortgage and compound interest are the same variables rearranged algebraically for the different results, compound interest and paying down loans are the fundamental financial equations.

[@shawnbrennan7526]

In my experience, algebra is rarely taught well and has been proven to be the point at which many girls are turned away from STEM entirely. Instead of random equations, relating the concepts to financial formulas would help kids in so many ways.

[@joeb734]

I think not enough people consider military service as a fast track to many things...easier access to buying a home, free education and skill building, veterans hiring preferences, and a quickly built network of professionals are just a few of the minimum benefits anyone can receive for serving 4 years as active duty...not even counting the additional options and flexibility of National Guard or Reserves. Multiple generations of my family have all served on active duty status. I served for 9 years. If you're smart and sensible about what you choose to do, there are incredible opportunities out there if you know where to look!

[@greggpurviance7252]

50 + years best ever. Great info & perspectives. Keep up the good work

[@dbest4755]

Hi Erin, thank you for all the information and teaching videos in 2024. I look forward to receiving more in 2025! why you not CFP ?

[@edwardstewart9085]

Once again your wisdom is off the charts!

[@davidboyd7494]

That is why Erin gets the big bucks

[@usbankusa]

Thanks for sharing. You are not only seroius but also funny lady as well.

[@keithfrasier]

Great video once again Erin. Happy new year!

[@ErinTalksMoney]

Happy new year!!!

[@davidstephens6458]

All great points Erin. Great video as always. Happy New Year! And I believe in love also.

[@kennethroyer9949]

I know of one small engineering firm (around 200 employees) their wages are below market however the employer matches dollar for dollar up to 10%! Also 50% of any bonus goes into the 401k. There is only one method of investing using Vanguard and it is structured like this: 25% short term bond fund 25% Long Term Treasury bond Fund 25% Precious metals mining companies and other international infrastructure corporations 25% Small Cap growth and value companies rebalance automatically every quarter 20 to 30 year average annual return is close to 7% however drawdowns are SIGNIFICANTLY less than the S&P 500. A 50% decline in the S&P 500 would only be 10% for this 4 fund approach. Roth IRA choose what ever fund you like with Vanguard. The turnover at this company is by disability, death or retirement any other turnover is extremely rare.

[@qantes]

I would suggest being more aggressive than that especially early on. S&P and is 9.7%

[@michaelhuber1107]

Losing alot of $ not investing in S&P 500 over long term

[@russlavalle]

Wierd. I found a lot more funds at my brokerage firm than those 4. ;-) My method (not the only method) is the 5 categories mentioned in the excellent book "Simple Wealth, Inevitable Wealth", 20% in each: Large Cap Growth Large Cap Value Small Cap Growth Small Cap Value International

[@davidblack6413]

One of your better videos, Erin, and they are always good, this one covering the four corners of personal finance--mathematical, behavioural, relational, and as a welcome but less typical factor, societal. There's a holism to this one that really resonates, as is clear from the comments here. Also, glad to see you now well north of 100k subscribers.

[@ErinTalksMoney]

Thanks David!

[@turbocfn39]

Great video. I feel like these types of videos are your strong point.

[@ErinTalksMoney]

I appreciate that! 😊

[@PedroRoca-g6r]

Thanks Erin, any suggestion how to teach minors (nephew, niece) about financial issues? Thanks.

[@davidboyd7494]

Start by buying them a copy of The Millionaire Next Door. Easy to read and tons of great info. Then I would hook them up with a Dave Ramsey financial advisor in their area. Avoid debt as much as possible and start investing now.

[@michaelhernandez2868]

The best advice I ever got was for me to be the example. I wanted my son to learn about money. So, I learned as much as I could about stocks, real estate investing, banking, private equity, being the lender to others for real estate or start a business, angel investing & more. I read every book I could get my hands on that was about personal finance & investing. I read so many books on business & investing since the late 1980s. I have a good size library in my house, now. My ex-wife & I divorced in January 1988 & my 2 year old lived with me 'til he was 9 years old. I wanted to pass what I had learned to him. He lived with his mom in several other states 'til he was 13 & came back to live with me during his high school years. I took him several investing seminars, to meet with bankers with me, real estate showings, apartment building showings. He learned to do the math to evaluate rental profits, profit & loss statements, r.o.i. on buildings & stocks & more. Now, he has his own business & owns all of his large equipment outright, no debt. He paid for it from profits from his business & investments. He's taking his 27 year old 1/2 brother with him on jobs & showing him how to bid them, to read profit & loss statements & taxes & investing in stocks & crypto. He's also teaching his cousins how to invest. My grand children are coming to me & him with questions about investing. They're in their late teens and are starting their investing journey, also. We have a brand new great grand daughter & my, now, wife & I are gonna try to stay as healthy as possible to live long enough to teach her, too.

[@NiranjanBendre]

Yes, starting early and making okish financial decisions for a long time makes a lot of difference. Spouse is also a huge part of financial decision apart from other companionship/love reasons. BTW: Nice earlobe ring… might have to get one of those for fun! 🤩

[@chemquests]

I was surprised to learn here that the majority of households aren’t dual income. For years I’ve been hearing about the median household income being ~$80k but had assumed that was mostly dual income. The stats you shared imply it must be mostly single income. I’ll have to look this up, to get better calibrated to how unusual my social bubble is, given the proportion of traditional nuclear families I see. That would definitely make life harder if it’s the norm.

[@HarshColby]

If you're young, and your parents don't talk about investing, it's in your best interest to learn. When you're older, it's much harder to play catch up.

[@Allegan49010]

Excellent commentary!

[@ErinTalksMoney]

Thanks!

[@ljosephdumas3113]

Choosing the correct partner is crucial to success. If one's a spender and the other's a saver there's going to be nothing but head-on collisions. I'm one of those whose mother (my father left us - his THIRD family - when I was four) NEVER spoke of money. It was taboo. I understand what you're saying about single parents, etc. BUT I still say for some saving is realistically impossible. The states of Georgia & Wyoming, in 2024, still have state minimum wages of $5.15/hr, which are overridden by our incredibly generous federal minimum wage of $7.25/hr. If one has rent, childcare, food, etc. $290/wk leaves NOTHING for saving, especially if one lives in a high cost area like I do (northern Virginia). Finally, your comment about financial planners hit home. My wife and I went to one of those free seminars. Put together our package, set up an appointment. The appointment was canceled by the planners' firm, and they never responded to any of our communications (email and phone) about rescheduling.

[@rffinances8567]

With the lack of knowledge, a lot of it could be that they don't think they have a lack of knowledge, or don't consider they need to learn more. There is a ton of useful information on the internet, but for someone to take advantage of it, they need to seek it out. And if they're caught up in their day to day lives, this might not be something that occurs to them they need to learn. Something related here is that many people don't have a long-term mindset when it comes to finances. Many people think they're doing it right if they can cover their monthly bills and have some money in savings. And while this is better than the alternative, they won't build wealth like this. Another reason people struggle is not having the income to build wealth. You can have all the financial knowledge, but if you don't have the income to save and invest, you're not going to make progress. And while it's simple to say just get a better job, there might not be better jobs where a person lives, and the good jobs often require some type of schooling to get these skills.

[@timothythompson4036]

This was a good video. Nut not discussed here. Have life insurance that you own personally. Away from your employer. If you only have a work life insurance plan, when you get laid off you lose your life insurance. A good whole life policy helps off set the risks involved in investing in stocks in your 401k.

[@loborocket]

Insurance away from employers sure. Whole life….maybe not for everyone, it can be loaded with fees and a trap for many. Simple inexpensive term policy gives you the protection you need for your loved ones.

[@timothythompson4036]

@loborocket The problem with term is that only 1 % of term plans pay any death benefit. A twenty year term policy seems cheap, but it ends right when you need it. If you need to renew it becomes very expensive. That is why, long term, whole life is better.

[@loborocket]

@@timothythompson4036 yeah exactly right. If all goes as planned I never get a payout on life insurance. It is there to replace my lifetime earning for my loved ones in case I die “early”. Once my obligations are met and I am no longer working there is nothing to insure. I don’t want a payout. Paying a premium for a “death benefit” is not part of my financial plan.

[@hunnybunny4306]

As someone who's more frugal than probably 90% of people and who's never had a partner as frugal as me, I've always spent much more when I've been in a relationship than when I'm single because expenses like travel, food, gifts, and entertainment increase drastically.

[@audreycrouch4228]

Killing it! Love your videos ❤

[@billy2807]

Hey guys! What's up. Awesome video, as usual, Erin!

[@ErinTalksMoney]

Thanks! 😊

[@meh4062]

Another thing is make sure you invest in your retirement and not just fund it. So meaning make sure you dont leave your money in your checking account and put it into your savings. (Makes more money than your checking).

[@brandonblahnik6002]

I try to encourage my coworkers to invest and save for retirement but I have had mixed results. Some listen and want to learn about personal finance while others are not receptive at all. Some understand the importance of saving for retirement but cannot do so for various reasons, such as an inability to say "no" to family or friends. Personally, I am grateful for everything Erin does on this channel and wish her and her family a great 2025! 🎉

[@jameskilrain9350]

Lots of persons are afraid of losing money.Ironically,some of these same persons spent a lot of money on lotto tickets and never win.

[@richardwysocki7490]

Wants vs Needs. What brings you joy. Clothe and things are worthless imo. I enjoy the savings for the future and enjoying trips and adventures now

[@davidhorton5965]

I was fortunate enough to take an interest in investing and personal finance at 17yo. Started investing at 18yo and have continued ever since. Many mistakes later, I'll be finally able to retire in 6 years. I have a public service job that never paid well but enough to provide and some left for building wealth. I'm one of the lucky ones who will collect a pension too. Start early, be consistent and you will need less money to grow big.

[@trackguy4038]

Can you do a video on the steals of deals you were able to get with after Christmas shopping?

[@ErinTalksMoney]

I actually didn't buy any gifts this year. We simply did a family trip 😊

[@lphlamb]

😂 love the bloopers at the end of every video

[@recoveredconservative]

It's a hugely complicated question, but at it's core--it's a political one, sadly. I know some fantasize about a world where the "laws" of economics play out unfettered by government "interference," but that's pure fantasy. It's never happened and never will. So the question comes down to the distribution of profit that comes from the sale of goods and services. We set up rules for that, like the minimum wage, for instance, tax codes, industry regulations (or lack thereof), and in many other ways. At one time we set up those rules to create a middle class society and we did, we became the middle class envy of the world. But those days are long gone, the rest of the developed world has moved passed us, as we decided instead to create rules to benefit the super-wealthy. And that's where we're at. That's why so many are unable to get out of a paycheck to paycheck life.

[@GAFB1122]

💯 Exactly! America celebrates "labor" one day a year. "Labor" should be celebrated every day of the year. But labor is not valued in this country. Certainly not anymore and not for a long time.The only thing that is valued is wealth. That is a recipe for failure.

[@Miner-dyne]

Some of the playing field is set by politics, but it is mostly behavior. I don't think you are operating in reality, if you believe the minimum wage was set up to create a middle class. It is only to set the floor for a training wage. The tax code is highly progressive. Taxes are quite high, especially if you live in a state that likes to 'help' people a lot. Even so, anyone can save and retire comfortably. The largest impediment for most people is the lack of delayed gratification. People want things now, and want to pay later. This is a very old story. The Richest Man in Babylon by George S. Clason is from 1926. Today he would have been on KZbin trying to tell the same story. Financial illiteracy and the need for instant gratification are the real wealth killers. We do people a disservice when we let them think it is harder now than 100 years ago. We have had (and always will have) poor, and rich, and the folks in between. Most developed nations are variation on the same theme.

[@GAFB1122]

@Miner-dyne You and those like you are the primary reason the poor and middle-class struggle while the rich flourish. While absolute equality is not possible or even desired, the larger the gap between the have's and the have not's is detrimental to society. America's income and wealth gap is larger than the Grand Canyon is wide. I bet you are one who says phrases like, be thankful you even have a job. And I bet you believe in the wrong headed trickle down economics that has resulted in the greatest transfer of wealth from to bottom to the top. So long as America values wealth over work and labor, then the country is destined for failure. I cherish labor whether they are skilled or unskilled. But I am sure none of what I said registers with you. That's ok. I will carry the flag for labor and the working poor.

[@recoveredconservative]

@@Miner-dyne Yeah, that's the story-line--that's exactly what we're taught to believe by those who own everything. We are by far the most unequal developed nation on earth--not even close, and you think it's because people can't delay gratification? Good grief. We once fought a revolution to separate ourselves from the most unequal nation on earth. And then we set up a government for the people, by the people, where individuals rise or fall based on their own merits--there was to be no no hereditary wealth here. But all that has gone out the window now--we most recently elected a man determined to set up permanent billionaire control of this country--exactly what we fought to escape in the 18th century.

[@GAFB1122]

@recoveredconservative You said it 👏 💯 Miner-dyne and those like him are what keeps the rich getting richer and the poor getting poorer.

[@princesskaitlinhazelwood4703]

I opened VOO vanguard ETF for each of my kids. You can open with a small amount of money and buy fractional shares. Much better for people getting started and for kids.

[@gr8bkset-524]

Erin, You touched on the my formula for being able to retire at 45. First, live with parents to save down payment for home. Second, buy a home near work, and invest the $10k/year saved not owning a car. That $10k can become $1M in 22 years. Third, rent out extra rooms in your home and use the income to pay off the mortgage. Finally, max out 401k.

[@donaldjohnson-y6n]

I think it was SNL that had a Suzy Orman skit where a homeless guy calls in and she starts advising him on needing a Roth.

[@ErinTalksMoney]

I am looking this up right now 😂

[@ClassicCanoes]

The wealthy barber and the richest man in Babylon are life changing books

[@trackguy4038]

Back when I was starting investing in the mid 1980s, firms such as American Century and others would waive the 1K minimum if you setup automatic withdraw from your checking account.

[@mclark42]

I have heard that cuts to Social Security are inevitable around 2030 unless the FICA cap is raised sufficiently. I'll be 70 in 2030 and was planning to wait until then to draw my benefits, but feel like I should start drawing SS at 65 since the future of SS is so uncertain. If benefits ARE cut in the future, will they apply to everyone or only to people who apply f/benefits after the cuts?

[@paulbrungardt9823]

To younger Folks : Remember D.O.G. -- Delay of Gratification . Dog is man's best friend.

[@GAFB1122]

I think it's a mistake to not acknowledge that the country has moved from a manufacturing / producing economy which provided the average unskilled laborer with a decent life including retirement to a consumer & service driven economy and these jobs have been a disaster for unskilled labor i.e. the working poor. I always say it is tough out there so don't make it tougher by making poor choices but that does not negate the fact that the government needs to implement policies and programs that help unskilled labor i.e. the working poor. Ronald Reagan instituted the greatest transfer of wealth this world has ever seen from the bottom to the top, and it goes on to this day. We need to correct this injustice.

[@antillie7]

Hot take: Given how much a 1% or 1.5% AUM fee can cost you over the course of 30+ years it probably makes financial sense for many, maybe even most, people to take some or even all of the courses required to become a financial planner/advisor.

[@michaelswami]

Come for the financial wisdom stay for the bloopers

[@JackDaniels1965]

This is exactly why I left the private sector so many decades ago and got a civil service job because I wanted a secure career and retirement. And now, 30 years later, I'm going into my 3rd year of retirement and my passive income exceeds my expenditures. Oh, and I've been married for 30 years as well but my spouse had to leave the workplace over 10 years ago due to health issues. Overall, we are living comfortably in retirement. 👍😉

[@wagon9082]

Good video

[@ErinTalksMoney]

Thanks!

[@richgrada4322]

Interesting advice that came from my brother-in-law`s mother applies here "if you can't marry a rich girl then marry a frugal one"

[@jameshawkins9453]

Love the video . I believe in love to I've been with my wife for 19 years and 15 years married. Its a matter of who you pick. You need someone that have similar views and common future of what you want in life.

[@lanwatcher9104]

Surprised you did not mention Fiduciaries.

[@tjava2338]

Wealthiest humans on the planet ever in the wealthiest empire in all of human history, destroys people psychologically to be unable to rationally evaluate what are needs vs wants. It affects all of us. Breaking out of this gravity takes discipline and intentional self awareness.

[@sdmod1]

A great marriage is a great blessing in so many ways, including having a true partner to share life, expenses and plan a future together.

[@victorbaird8220]

I have low income and I wish I could invest more 😮😢

[@jacobside2656]

The mindset that you can't save. I lived paycheck to paycheck, pay this or that bill late every month for years, but the entire time i always contributed 10% to my 401k.

[@tjava2338]

Starting points dont guarantee a good finish. It's a strawman in modern internet times. Character, self discipline, and motivation are the true superpowers to mold a successful financial life.

[@datther]

I learned about money on my own, there’s no reason to ever pay for advice. Of course, you have to want to learn. I was fortunate. I had a job where i could save money to then buy funds like Vanguard, they’re the cheapest no load funds. Concerning comingling finances with a partner: if you’re a woman, yes. As a man, be extremely careful and only marry if you want kids. Women don’t even need a reason to divorce you thanks to no fault divorce. And family divorce court consistently favors the female. There’s a reason why >70% of divorces are initiated by women

[@kbart9576]

Healthcare ....

[@TampaFloRaider]

Financial starting points - Some people are just stupid and spend money on stupid stuff. Like $8 for coffee every day.

[@KISSGreatestFan]

👍👍👍

[@BarnabyBarry]

Most do not know the importance of a California state pension-but you have to work 30 years!

[@markmalloy3438]

Great video! Wait, do you have a partner, Erin?

[@KrustyKlown]

Americans for generations have been taught to "get good credit"... then USE all that credit to buy a house, cars and things to signal that you "doing well" .. LOL. buying such liabilities on credit is beyond DUMB. None of those liabilities will generate INCOME ... instead "buy" what does.

[@marklopez4762]

Having good credit is different from buying cars and other liabilities. Having good credit can be very beneficial in the interest you pay on your primary home and rental properties.

[@Donkeyearsa]

I am Gen X and that has never happened by my experience. What I know to be true was everyone was told to work really hard and to keep your nose to the grindstone and magically when you get to retirement age you will be able to retire because that's what happened with The Greatest Generation and Silent Generation aka my generations grandparents who where retired at or around 55 who where the generations who just happen to have had the luck of being around for the golden age of retirement which has been long gone for decades. Now days you have to make retirement happen as you wont be given it as pensions are just not a thing anymore you have to do it your self by putting the effort into it and do your own saving and not expecting others to do it for you. Generation Z just may be the generation who will have the luck of bringing around the second golden age of retirement because they have unrestricted information to make it happen. I will never know as I will have been dead, buried, and long forgotten for decades by the time that comes around.

[@kristing8357]

What doesn’t ever get talked about is the brutal truth of IQ and educational advantage. A university education requires an IQ of at least 105 and the top earning majors require a higher IQ. All other factors being equal, you can say that more than half of the population is grossly disadvantaged. Neither government nor corporate America accounts for this. We do not all start from the same place.

[@Aldo-d6z]

Your title for this video asks why Americans struggle to build wealth. That implies that the rest of the planet is hitting it big and it’s not. The truth is that that a very large part of society is never going to be wealthy. The wealthy, not so wealthy and the poor will always be here. It doesn’t mean people can’t improve their situation. but thinking that everyone is going to be wealthy just isn’t going to happen.

[@alkatmsu]

People assume social security will take care of everything, so why bother saving when the government will take care of them 🙄 we need to sunset the program and get folks taking care of themselves again

[@trackguy4038]

Erin - You could be an hourly only advisor and charge $250 an hour, you would make a killing

[@educatedwanderer9293]

I have no idea how I initially decided to increase investing into my 401k beyond the matching or into an IRA. I suppose it was the debt I had paid off, and then realizing I had to start saving more to build a margin or equity. Then as I saw growth and read more, I realized I was on the right path and I increased savings and investing as I earned more.

[@russlavalle]

Another financial benefit to being married is your tax bracket in retirement, especially when being hit by RMDs. Ditto with Roth Conversions.

[@fasteddy3336]

I’m gonna ask a crazy question, have you been tanning? I noticed about five or six videos back that you looked tan.

[@ErinTalksMoney]

🤣 funny! I wear a fake tanner, so basically lotion. But I am way too skin care conscious to do real tanning. I have very fair skin, and I burn easily. So I wear sunscreen a lot!

[@kevinobrien9271]

@@ErinTalksMoney Whatever you’re doing, it’s working.

[@garypeiffer1362]

@@ErinTalksMoneykeep wearing that sunscreen, especially on the face daily if you can. UV radiation from sun exposure ages the skin and is mostly irreversible. Your future self will thank you!

[@ErinTalksMoney]

oh, trust me, I know! I have been religiously wearing sunscreen since I was an early teen! I think that's a big contributing factor as to why my skin is aging well. 😊

[@joelcorley3478]

You don't have to be married to someone to have a partner or share expenses.

[@martinyeager7948]

Thanks and Happy New Year. I hope people find love and a happy marriage but, even setting a goal of living with a roommate for five years while saving an amount equal to their half of the rent, utilities, internet, etc. would help people get off to a good start. Or maybe just live at home, contribute to your parents expenses and save an extra 20% of your income for your eventual place of your own. Today is a great day to start that journey (any today!).

[@darrienramsey6370]

she is intelligent and easy on the eyes, lucky husband. I really enjoy her content on finance information.

[@bobbert1945]

This brings back memories. I desperately wanted to invest in a Vanguard mutual fund back in 1997, and it took me forever to scrape 3K together. My boyfriend "loaned" me part of the money so i could finally open an account, which turned out to be a good investment since we're married now.

[@jhopkins2258]

Your husband is one lucky man, just saying!

[@mikepiper6077]

The most important thing one can due in life is to marry the right person in the right place by the right authority. Bruce R McConkie.

[@fredswartley9778]

I agree that having a good partner will definitely help you financially. Marriage does have financial benefits. However, no one should ever marry just for money. You should only marry if God has led you to a godly person who would make a great partner. Marrying for the wrong reasons can end up in divorce and cause significant emotional damage as well as financial loss. It's better to be single than married to the wrong person.

[@darbyohara]

Simple: they spend as much as or more than they make

[@ace-c7j]

You can't build lasting wealth, or any wealth at all when you get laid-off 9 times in 20 years. All you can do is lose money!

[@tommcgregor-l6e]

Hey... my video had no like button, only a thumbs down...just sayin

[@rhaythe]

Before watching the video, my guess is simple. Too damn much useless debt.

[@darinherrick9224]

whether you're likely to divorce has less to do with who you married than the kind of person you are. I have severe behavioral and psychological disorders and have been married 13 years. All my co-workers were amazed. I'm a devout Christian who lives by bible principles. My divorced and unmarried co-workers... aren't.