Turning $50K Into $1,000,000

[@TScottW99]

Great episode, Erin! I drive a 16-year-old pickup, it's very helpful to not have a car payment when you're building your wealth.

[@ErinTalksMoney]

So true!!

[@Pecunia3]

@@ErinTalksMoneyand even better with no mortgage or credit card.

[@ExileOnMyStreet]

With the right mindset and motivation, it can be done. I didn't get serious about my investments until I was 48 years old. I'm now 54 with no car payment, no mortgage and 500K invested in the market. I don't plan on retiring until I'm 62 and I anticipate having well over 7 figures by then. My only regret is not starting earlier. To be honest, "retirement" is overrated but the freedom that having your finances in order brings, is priceless.

[@tajdvl-advocate6113]

I got my daughter to start early at 26. She is a physical therapy doctor and, at 34 and including her employer match, currently saves 30% of her $100K gross income. She currently has a total of $200K spread across her 401K and IRAs from a previous employer. She’ll have $1.3M saved by 55 even of she doesn’t add anymore to her 401k. Warren Buffett called that the magic of compounding, coupled with starting when you’re very young.

[@ErinTalksMoney]

That’s awesome! She’s in such a great position!

[@FIRED13]

@@tajdvl-advocate6113 I call compounding "pixie dust"

[@jeanne-gord7685]

I have an 06 jeep. Lots of miles but well maintained. OOppps, the motor blew in it only 5 out of 6 cylinders pumping. I looked at buying a used suv 7 or so years old with no more than 75,000 miles. Anything that wasn't in an accident was around $25, ot $30,000 Plus taxes plus, plus, plus. Instead I opted to put in a crate motor. Fully installed and 100,000 mile warranty came to just under $10,000. We really like the jeep and it is again a really solid vehicle. I paid cash for the work. So in the last year I have earned 18% on the $20,000 I left in the S&P 500 eft . Excellent.

[@ErinTalksMoney]

The only issue I’ve ever had with my jeep was that one day the battery exploded. But luck of all luck, it was as I pulled in to get my oil changed. So at least I was at a garage who could fix it 😂

[@tonyherdina9142]

That car repair is worth it if you figure what car payments are. And Jeeps hold their value and last forever.

[@stocksxbondage]

Realistic numbers! I can’t stress enough to friends and family that anyone can improve their financial life. Currently, coming to terms with accepting that maybe me, and so many of you reading this, have a unique personality that predisposes us for financial success. Maybe most people’s money psychology isn’t built for wealth building 🤷🏽‍♂️

[@cpizani]

Agree... Save your cash and drive that thing until the wheels fall off.

[@mattkavanaugh5623]

I am proud to say that my car is 17 years old, and I bought it used at a very good price. It's such a waste of money, IMO, to buy a new or expensive used car every few years.

[@tonyherdina9142]

My dad used to say, if you have a car repair that's $1000 just have it repaired. That's a couple of payments on a new car.

[@dstevens518]

I've recently come to the conclusion that there's two kinds of people in the world. One will accumulate wealth, no matter how little or much they make, they'll always live within their means and save for a rainy day. The other will blow through money and are destined to never retire, doesn't matter if they make tons. Look around you and I bet you know examples of each type. Here's hoping you're the type that gets to retire (in style!).

[@vinyl1Earthlink]

Many people can save 30-40% of their income or more. If you have a good income, you can live simply and save a lot. The big thing is to dodge high housing and car expenses.

[@ErinTalksMoney]

100%!

[@StormGod29]

We've never taken a mortgage for more than about half of what the bank pre-approved us for. Just because we can does not mean we should! Everyone should be living *well* below their means that wants to obtain financial independence early in life.

[@TheOriginalTucriah]

Buy used, pay cash.

[@FIRED13]

@@TheOriginalTucriah Since we tend to keep cars until they die, we likely will buy new next go around.

[@The_Fancave]

Saving the equivalent to a car payment every month is a great idea. I've done the same thing since paying my car off nearly 3 years ago. I put $10K into a high-interest (4.25%) savings account, and the remainder into low-cost index funds. I could use that to buy a new car, but plan to keep my car forever. As petty as this sounds; I can't stand the convoluted and unnecessary features of new cars, and the fact that I would have to sacrifice my beloved CD player, LOL.

[@dstevens518]

Not petty at all, and you also have to consider that while the new features in cars might be useful, especially the safety ones, the car is still MORE inherently UNSAFE! Why? Cause manufacturers insist on burying often used features like defogging the windows or adjusting the temperature in the vehicle IN THE MENUS. So you're busy looking through layers of menus instead of watching the road...

[@The_Fancave]

@@dstevens518 Agree 100%! I drove a rental car last year that had this hideous IPad-esque monstronsity in the dash which controlled basically everything in the car. I couldn't make heads or tails out of it. My car still has the two knobs for the radio, and three dials for the climate controls. I wouldn't have it any other way!

[@Random-ld6wg]

2 car purchases ago, in 2015. i was asking the salesperson where the CD player was and she gave me a funny look.

[@The_Fancave]

@@Random-ld6wg I guess I'm lucky, my 2017 Forester seems to be one of the last vehicles to have a CD player as standard equipment. I'm not going to cough up subscription fees for Apple Carplay, Sirius/XM and such when I have literally thousands of CD's

[@Random-ld6wg]

@@The_Fancave i put about 50 discs on a thumb drive and stick it in the USB port and that does make it easier to go through the albums. i should have put more onto the drive. i am a luddite i haven't even made a copy of the thumb drive to go onto the other car. i don't use the subscription services as well.

[@joel530johnson2]

We bought a new Honda CRV in 2008, and paid about $25K. Last year our daughter needed a car, so we decided to give her our 2008, We went looking for a new car and ended up getting a 2024 Honda CRV EXL for about $39K (cash). We know we over paid for the car but since we only travel about 10K a year (and will be reducing that to 5K) and it had so many safety features (that, we as senior citizens need) we felt is was worth it. Like you, we plan to keep it until the wheels fall off.

[@sirheisenberg4459]

Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as stock, EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE

[@jasongallagher631]

I very much appreciated this one. I am 34, 35 in a few months, will make $80k for the first time this year, and have a bit more than Miriam had in her account at 33, enough to be “on track.” It feels like I am Miriam’s younger self, and it’s nice to know I’m doing well. I don’t plan on retiring-I have a good job-but I have a lot of clients to make that $80k, and it would be very nice to work less hours each week.

[@valerieproctor517]

I just turned 35 in July and feel the same - We're hoping to step away from the workforce at 60. I was lucky enough to have a coworker encourage me to contribute up to the match when I was 22 - without knowing what I was doing I was already building wealth!

[@jasongallagher631]

@@valerieproctor517Wonderful! I’m glad that coworker came into your life. It makes me so sad that wealth is so dependent on happening across the right information when you’re young enough. For me, it was Harold Pollack’s interview on Freakonomics for his book The Index Card. It made me open my Roth IRA at 26.

[@livingunashamed4869]

My car is 16yrs old with 184k miles and I love it lol. Will drive it for as long as I can.

[@ErinTalksMoney]

My car is going to hit 80,000 miles this week! I think tomorrow actually. It’s going to be a big day. 😊

[@thebookwasbetter3650]

Mines 12 years with 104k. Now that I work remotely I do about 4k miles a year. It'll last forever!

[@mbank3832]

So, is it a Toyota or a Lexus ?

[@srl0003]

Toyota 4Runner at 210k 😄

[@Dan-kd3ft]

2005 Honda Civic. 19 going 20 yrs old now with 180000. Love it!

[@chaselesser3191]

At 37 I had maybe $5k. I started very late. I just turned 38 and up $40k in the next week. Hopefully have over 100k by age 40, and hopefully $375k by 44.

[@ErinTalksMoney]

That’s awesome! I’m so proud of you!

[@christopherzehnder]

Thank you for pointing out how strange it is to want to constantly be upgrading to the newest things. I have extended family with great incomes that live close to poverty because they need a new car every year or two…😮

[@ErinTalksMoney]

Ouch!

[@dstevens518]

The capitalist machine is very effective at normalizing debt and the desire to keep up with the crowd. You know how folks look at drug addicts and feel sorry for them, their utter inability to stop their self destructive behaviour? I feel the same way looking at folks who can't stop spending, who are destined to live a life of money stress and never be able to retire. Get off the hamster wheel, the FIRE folks have the right concept. Take control of your own life and time, don't answer to a boss.

[@archeanchaos-s4c]

I retired from the military 5 years ago (45 y/o)with about $80k in investments and another $150k in equity in my home and 2 rentals. Downsized for a few years and bought a cheap doublewide so I could save aggressively. Lived primarily off my pay from work and saved my entire retirement for 4 years and sold one of the rentals last year. Currently i have a $750k net worth, with $500k cash and investments. My plan when I retired was to hopefully have a net worth of at least $500k at 60 and retire completely. Now my plan is to have a net worth of $1.5 mil by 57 and retire then.

[@davidcollier3604]

14 year old Honda Accord here still looks like new, drives great no mechanical issues. The Previous one I had for 18 years. I do not think this will be possible with what is available now days.

[@ErinTalksMoney]

My car still looks like new too!! that’s partly why I still enjoy driving it, take care of it, and it will last!

[@HighCountryRambler]

Did I hear correctly, Erin's HOA said to buy a new car? OMG, thanks for reminding me why a HOA is a BIG show stopper on any property I'm looking to buy. My wife and my last 5 vehicles have been cash purchases, don't remember when I've had a car loan last. Cash is king, especially 6 years into retirement.

[@ErinTalksMoney]

To be clear, they were not telling me I had to buy a new car. They were teasing me and wanted me to buy a new car. It is certainly not a requirement to live on my street. 😂 although, funny story I was walking past my next-door neighborhood just bought a new car last week. And I complimented him on his new car, and he said I had to buy a new car to keep up with everyone on the street. I wanted to slap by forehead. You always hear about keeping up with the Joneses at least proverbially, I’ve never actually heard it spoken aloud.

[@tothra]

YES! Erin has released another video with bloopers! Excellent 😁

[@ErinTalksMoney]

Thanks so much for watching!

[@paulg2132]

Hi Erin, I have watched a number of your videos and am a subscriber. As a former radio personality, I just wanted to applaud you for your diction, voice quality and pacing. Younger people speak quickly and older people like me often cannot process speech as quickly as we used to. Again, thank you and keep up the great work 🙌👏👍

[@ErinTalksMoney]

Thank you so much! I listen to a local morning radio show in my state every morning as I drive my son to daycare. And I try to call in as often as I can. I love the morning shows on radio so they are so much fun and so interactive. The days I get through on the phone are probably the best ways I could possibly start my day. So all of this is to say that radio personalities are so wonderful, and bring so much joy to peoples days. Including mine. I imagine so many people enjoyed listening to you!!

[@ld5714]

Hi Erin. Good video and discussion. Kudos to Miriam; she is definitely knocking it out of the park. I've never been a big follower of the FIRE movement. I retired in 2012 at the age of 62. I too have always kept and driven my cars a long time, and you are spot on about the expense factor. The problem is I've always been a car guy and owned a few over the years. I'm done now but did treat myself to a very nice new truck in 2022 (replaced my 18 yr old Chevy truck) which I rationalized with myslef as being the last vehicle I would purchase. My oldest is a '68 Mustang GT, and 4 other vehicles ('85, '06, '15, '22). I really liked Miriam's approach to try to save 10% off a trip and invest it. Great approach and that creativity and committment is what it takes. Keep up the great content Erin and have a blessed week. Larry, Central Valley, Ca.

[@ErinTalksMoney]

Here’s the thing, I’ve only ever bought one car, it’s my current vehicle. And I bought it brand new. I know everyone says to buy used. But I didn’t want to. When I go to buy my next car, I will buy new, simply because I want to. And I will keep that car for as long as I possibly can. To me it’s worth it. Spend your money in a way that best suits your lifestyle. 😊 I have nothing against new. I have nothing against used. I think by the one you want and more importantly, by the one you can afford.

[@ld5714]

@@ErinTalksMoney I agree 100%. You are an intelligent woman and more than capable of making infomed and correct decisions for you and the situation Be true be true to yourself!!

[@kayemiller3093]

Yes, thank you Erin!! My hubby and I put our first house on 15 years and paid it off in 10. Although we upgraded our housing several times, we never had a mortgage or any other debt after that. We maxed our employer matched accounts, put bonuses and other windfalls in the bank, did some other investing along the way and retired at 52!!

[@gv6943]

Here's another bit of advice - no HOA!🤣

[@tothra]

@@gv6943 Although it seems like she's on good terms with them. I have heard rumors that there are a few good HOAs out there. Just rumors 😆

[@ErinTalksMoney]

Touché 😂

[@darrendent8288]

HOA’s do help to keep the home value/properties in the area maintain its value. Even tho its tedious.

[@StormGod29]

@@darrendent8288 they can serve a good purpose but they always do so at a cost. I live in a neighborhood w/o an HOA and my property value has tripled in 9 years.

[@archeanchaos-s4c]

@@darrendent8288 I live in an amazing neighborhood and no HOA telling me I can't park on the grass in my front yard. This actually happened in my old neighborhood and I was only parked there for about 30 minutes to drop off some plants in my backyard and got the letter in the mail the next day. Final straw was when they sent out a notice after hurricane Matthew that everyone had 2 weeks to get their properties fixed or they could get up to $100 a day fine. I was f this were out of here.

[@odannio]

We also have a 16 year old vehicle that we love given how simple it is to maintain, the looks, and that it still runs great!

[@MouseRetirement]

Thanks Erin. I like the individual analysis. I remember when you used to do the long form interviews. I loved them even though you said they didn't get as many views. Maybe a video idea would be like this but rather than discussing an article you could be talking about individual subscriber stories. 😊 Maybe i should make my own KZbin channel ti do that but mine would look like your end credits 😂 and i'd give up! I just noticed how many subscribers you have now.. I've been here years. Very well deserved. Thanks for the content xxx

[@ErinTalksMoney]

Hey Sarah! I didn’t really think of doing this regularly, but it could be really fun. If you ever start your own KZbin channel, send me a link. I’d love to watch your videos and subscribe. Don’t worry there’s plenty of bloopers that you don’t see, we all mess up. I’m so glad you’ve been here for so long, thank you for hanging in here with me. 😊🙏

[@modernsoccer1860]

I started a bit late at 37, I have only done it consistently for 3 months, but I am contributing $ 2200 per month, so hopefully, I can retire by 50.

[@charletfoster8917]

Great story!!! I’m motivated🙏🏿😊💵💵💵💵

[@brucef1299]

I love hearing the success stories of others. My only add is the concepts presented work regardless if you are a single or family. For me, FIRE went out the window when I married late and our child arrived when I was 40. Knowing I didn't want to saddle him with soul crushing student loan debt, I put FIRE on hold for a bit. I'm still planning to retire before he graduates.

[@ErinTalksMoney]

I hear you! I’m 37, and I have a one-year-old, and I definitely want to make sure that he is set up and not saddled with debt

[@xaldath4265]

2015 Mazda 3, here. Bought it new before I found "FI" content, but it's paid off now and runs just fine. There is absolutely rush to replace and I look forward to a continued free and clear vehicle journey, complete with hundreds more saved+invested, rather than lifestyle inflating.

[@jahmeshacoffie1606]

Love it. Great episode

[@chuckwhitlow995]

Had to finally depart with my 06 Navigator, said I'd drive it till the wheels fell off and was pretty close. Got a 22 QX80 since I still want some big metal around the kiddos, 16K miles on it and was about 25+K off msrp (personal lease). Paid half cash, financed the rest since I didn't want to totally deplete my cash reserves but will pay off within 2 yrs then try for another 16 of no car payment. :)

[@stephenlogan184]

Only have two issues: $1M won’t have the buying power of $1M in 12 years. If using the 4% rule as a reference, that’s just $40k/year which is half her income now. In 12 years, the buying power will be something close to half of that. Second issue: they have been seriously flooding the system with money since the 2008 mess, that’s why my portfolio and hers grew so much. Eventually that will stop and the returns will be more modest. Love that she’s paying her future self. Love that she’s conscious of where she wants to be in the future. But I think having a realist view of what she needs should be stated. Always include inflation in your goals/numbers. Btw, I think the fire movement gets a lot of things right but a lot of things wrong. Some may very disappointed with their future situation

[@dstevens518]

All good points. Still, these FIRE chasers already have the qualities needed to get where they want to go, namely purpose, motivation, and self discipline. Agree, there's plenty of nuances (mostly math related) they could be a little clearer on, but they're still lots closer than most, including the ones who sarcastically post asking which investment will pay off in 7 figures. There's no getting around wealth takes time and effort to build, and some folks just don't have it in them.

[@BaileyMxX]

Her salary should also increase over those years too? So her 15% she's paying in will also increase thus the total saved and invested will also be higher than the numbers given. Works both ways

[@stephenlogan184]

@@BaileyMxX Then it’s not $1M you’re seeking. It’s the equivalent of $1M buying power today or close to $2M. It took me about 10 years to get to my first $1M.

[@littlejohnjp]

Haha that’s great! I’m still driving a 15 year old Jeep, with NO payments. I will never make a car payment again. Not ever. One of the largest thieves of wealth there is! Great and informative video, thanks for your time.

[@myvalium1]

This video is incredibly important, especially for younger people. With time on your side, a disciplined plan can accomplish so much. Playing catch-up later in the game can become a daunting task. Rules to live by that I passed on to my kids … 1) pay off your credit card balance every month and never pay exorbitant interest 2) put whatever you possibly can into either your 401k - especially if there’s a match provision, or your Roth IRA.

[@erinhuff2701]

I still drive my 2004 Honda Element and love it. Kinda plan on getting a new car in 2025 but I dread a car payment and higher insurance/personal property taxes. I will probably talk myself out of it! 😆

[@Adrian.adrian24]

That’s great! I just sold my Element with 260,000 miles. Those cars run forever.

[@MarkfromTexas73]

Keep the bloopers! Love it ❤

[@whhsfordian]

In addition to the content, I really enjoy your bloopers...you are so cute!!

[@LifeInvestor999]

Great episode, it's a simple concept - delayed gratification. Much later, the results will show.

[@Scarletcroft]

Ooh this is still a great example for me (I have about the same goal). My income is quite a bit lower (but so are my costs), although me at my most frugal allows me to save/invest 80% at max. ( I don't actually do this all the time, because it's not very fun to keep up) Also yes, I love my car, I'm driving it until it dies. This involves alot of penny pinching, living with multiple people in one house (Pooling costs as a family). Wearing clothes until the holes are in them, shoes until the fake leather crumbles. Eating cheap, but healty meals. (Very limited eating out), no drinking, no smoking, no wasting gas, no vacations. Gather the nuts and seeds from the trees behind my house (free food people). Buy from the local farmer (cheaper than the supermarket). Doing your own repairs/home improvements as much as possible. We live near a river. We could fish behind our house if it wasn't illegal so sadly we don't.

[@glenn71144]

Paid off my truck in July. Now, the $500.00 truck payment goes to my house payment.

[@lindatodd4411]

I am retiring next yr at 57 with steady income stream from my dividend portfolio total $250,000 a yr to live comfortably, All thanks to my Fee only Advisor. I love TSLA so much! Also 3 houses paid off worth 4.5 million. One is my place of residence the other 2 properties will give me $150,000per/yr rent. I also have no debts... Stay Motivated!! 🌹✅

[@xiuying6874]

Amazing! I have Liquid $300K to put into stocks, but I want to ensure good profits & safety. With tons of Advisors now, how did you find the right Investment Advisory?

[@lindatodd4411]

Essmildaa Morgan is the name, she is well known, just look her up

[@anthonypayne8106]

Wow, Thank you for sharing your experience. I know Essmildaa too! She’s helped grow my reserve, despite inflation, from $100k to $240k as of today

[@xiuying6874]

Thank You so much Linda! Access to good information like this, is what we investors needs to progress financially and generally in life. this is a good one and I appreciate…

[@jaymetheaccountant]

Like most people, to retire easier than my parents. Simple changes. Enjoy the journey. Don't be reckless with money. Watch the nickels and dimes during the hard times. Spend when times are good.

[@nicksmith8141]

Good advise I drive a 9 year old Lexus that I bought new and paid off in 3 years. I. also have a 2022 Tesla , but purchased used from a relative and paid cash after selling my old Model 3. Instead of monthly car payments my wife and I invest about $675 per week which requires me to budget out everything months in advance. We are in our early 40s and on track to retire in 7-10 years depending on the markets.

[@RubbingPotatoes]

I'm 40 years old and have not yet bought a car. The last one is from 2005 my parents bought for me while I was in college! But yeah repairs and maintenance is another story ...

[@victorbaird8220]

25% savings rate to the moon 😊

[@keithfrasier]

Once again, great video Erin!

[@lonnieevans4127]

Common sense is not very common.

[@timopraxis]

Just realized I wasn't subscribed. I've now remedied that problem. Good luck getting to 80k!

[@ErinTalksMoney]

Thanks so much! I’m so glad you subscribed! It made my day 😊

[@wanger07]

I drive a 2008 crv, previously I drove my car from highschool until 2018 (97 Sentra). I was an engineering manager at a major Fortune 100 company and everyone at work told me to buy a new car 😂.

[@vulpixelful]

I love that this showed a realistic path to FIRE 🙌🏾 That makes people actually believe in the impact they can make with saving more over time. Not everyone automatically trusts what FINfluencers say about retirement investing and jump in. A lot of people need to see examples from someone making under $100k and who didn't have a major windfall of some kind.

[@bradleygraves5915]

I love my 16 yr old car as well ... 2008 F-150. Looks good, runs fine and I will drive it for as long as I can.

[@ronrae4029]

I save similar. Under budget put $ away. Retired no debt whatsoever. 15 yr car hope it lasts 20 yrs in great shape

[@matthewroth5062]

I hate car payments, lol. I just paid off my current car June 2024 (I financed a few months into covid... 0% interest loan, and then inflation really surged. Got really lucky here). Erin used 8% in the video and I also assume 8% ROI on future years for my investments... but I've actually seen 10% ROI too.

[@BrianK-zz4fk]

dont count on it to continue. Japans market took 30 years to get back to there highs this year. I am a believer in the market but usa is atificially inflated with gov spending. Still seems alright but going to get a nice dip soon to buy up.

[@nathanyoder4509]

I learned the hard way about cars that are too expensive for my budget😂 I do expect it to last me a little while yet though! I always enjoy the bloopers Erin!

[@ErinTalksMoney]

Ouch! However, sometimes the best lessons are the ones we learned the hard way. Because we never forget them.

[@FIRED13]

Three cars here 1999-2002, by far the oldest in our gated community 😊

[@ErinTalksMoney]

Yes! 🙌

[@FIRED13]

🙌

[@maximumutility]

Agree that car expenditures make people feel poor, even when they have solid income. The run up in car prices over the last 15 is more driven by people driving cars that are larger, more luxurious and more expensive to drive and insure. Our 10+ year-old, 4-cylinder Subaru Outback and Honda Fit are reliable, gas-efficient, and inexpensive to drive.

[@SpunkyGrubber]

One thing I do is when I want an energy drink, or to go out to breakfast etc I decide not to and instead send over how ever much money that would have cost into my brokerage account.

[@christiansailor2880]

Good info!

[@ErinTalksMoney]

Thanks so much!

[@todd2456]

My current goal after maxing out all retirement accts - is to put $100K each year into my brokerage account and do that for 10 years. Started in April, and have added $77K so far.

[@wildfoodietours]

For early retirement in order to pull out money early without penalty, what are your thoughts on using a Roth conversion ladder or doing a 72t vs the rule of 55? For me, having the option to not wait until a certain age by using a Roth conversion ladder or a 72t makes these options superior to the rule of 55.

[@jeremygermenis8036]

Still rockin my 2005 Nissan Frontier! Going to pass it on to my son when he starts driving in a few years. I might upgrade to a 2010...

[@ErinTalksMoney]

That is awesome!

[@anthonyguzek8262]

Love your channel. I wish I could say I’m 27,37 or even 47. I’m interested in getting started albeit late to the game. I’m interested in a Vanguard index fund. I’m looking for advice/direction. Taking into consideration my age I probably have 15-20 years left to leave something to my children. I’m presently still working full time (90k/yr). I receive $3300/mo from SS and a small pension. I’m paying $25k/mo toward a $79k mortgage. Should have that paid off in 21/2 years. Also $65k in an indexed annuity. Any direction would be greatly appreciated.

[@smileystevie9662]

Thanks, Erin. Great video.

[@ErinTalksMoney]

Thanks for watching!

[@lizd.8655]

Our workplace has the Rule of 80 which is calculated as: (age of retirement + years of employment). I'll hit the Rule of 80 at age 57 which is exactly where I want to be! I just hope I'm still employed by them for 12+ more years 😁

[@IsaiahJimenez-i9l]

So basically save your money? Very insightful

[@Spikey-Mikey]

Erin, you are awesome and an inspiration to us all. I hope that some guy is smart enough to scoop you up. If I wasn’t 70, it might be me! 🍀 Just kidding… you are the best!

[@joecochran7797]

I just turned 60 so my goal is to perform annual conversions from my Traditional IRA to my Roth IRA in order to lessen the blow of RMD's that begin at 73. I would like to lessen any/all future tax burdens in accomplishing this goal.

[@ronaldcambridge3126]

Being "financially literate" is the operative word(s).

[@barrywhite5899]

I struggle with this 8% yields on the examples. Where do you get this? Some stocks have this yield but their share price falls, cash savings are not this high, plus after any taxes etc I don’t see 8% anywhere. Any examples please.? Across my portfolio I’m on 5.7% yield on dividends

[@calminacrisis126]

We are upgrading to a new car next month. But ours has gotten pretty bad. It’s no fun to drive and the suspension has been getting worse despite multiple parts replacements. We’ll plan to keep the new one 7-10 years. Sometimes the headaches aren’t worth it

[@ErinTalksMoney]

100%! There comes a point when the repairs are too expensive, or it just doesn’t feel safe. At that point absolutely upgrade. Safety is the top priority!

[@hanwagu9967]

Miriam's story sounds great, but I really dislike stories which only to a misleading, partial story. Miriam has had a personal financial blog since 2016. She wrote an ebook in 2019. The story only highlights her $80k income from her main job, but doesn't mention anything about her blog, publishing, and speaking/media engagement income. So, there is side income beyond $80k. She may have just started getting serious 10yrs ago, but she did start saving 16yrs ago. You can read her blog, but she started saving 40% of her total income in 2018 and currently saves 41% of her TOTAL income. I'm not taking away from how she is crushing it and is hustling, but you need to read her blog to actually parse through the half story and misleading expectations from the Business Insider article.

[@educatedwanderer9293]

Good job, it is good to think back to earlier ages and realize just how far my portfolio has come and still could go.

[@buckwildz]

Rule of 55, but also the plan needs to allow partial distributions. Some only allow a full distribtuon at 55 which ends up costing a ton in taxes.

[@ErinTalksMoney]

Great addition!

[@xaldath4265]

Imagine retiring early leaning into 55t only to be taxed about 50% of your portfolio in the first year due to a lump some withdrawal. Ouch. Imagine that decision is made in 2000, 2007, 2013, 2018, or 2022 and the portfolio ends the year in the range 25-35% of the value when the decision was made. Always double and triple check decisions this large. It's likely a good idea to at least *consult* a financial advisor 5 years prior to give time to reorganize and prepare to avoid *this* level of disparity from plan to execution.

[@TheQUBANQT]

It’s a lofty goal but not an impossible one.

[@mazskefinance7818]

I started with $50 a month. I retired at age 50 and was a multi-millionaire not too much later.

[@jpdriver1967]

Brokerage account is so important. It is a way to invest with market growth and still have access to funds in an emergency without penalty. I just used brokerage proceeds to pay the taxes on a Roth conversion, allowing the full amount of the rollover to keep working.

[@brandonblahnik6002]

I agree that she should make sure her workplace retirement account allows the Rule of 55 and that she should invest within a brokerage account. I was curious if her retirement accounts are Roth or Traditional. If I was in her place, I would try to go with Roth whenever possible. I also was curious if she is using a HSA to invest.

[@annaj.osorio]

Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

[@SloanJane-xp4kr]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@Robbertskypes]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation

[@SloanJane-xp4kr]

Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@angeladeem2988]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@myeternalsin]

I feel like there is a lot of information and numbers missing from that article, I’d love to know more about her lifestyle.

[@Donkeyearsa]

There are people who save 30, 40 or even higher percent of their pay. It can be done. The only issue is do you really want to live that way. I was living in a cargo van for 10 months when I was having a really hard time trying to find someone who was looking for a roommate. In that 10 months I ended up saving just enough to put the minimum down payment and closing costs on a small working class house. The winter months where really cold and the summer months where really hot in that van expesualy since i could not let the cops find me living in a car. But in the end it was well worth it having to live in that van. The thing is most people either can't or won't go to such an extreme measure to have such a reward in the end. Though the funny thing was I was not trying to save up to buy a house I just could not find someone who was willing to take me in as a roommate. But I really won in the end.

[@bvoyelr]

How to turn 50k into 1 million? Put it into the S&P 500 and wait 30 years. The hard part is getting 50k. To get it within 5 years, you have to save 650 a month. That's 15% of a 50k salary -- not difficult, per se, but might be a stretch for people in the age brackets that have to achieve it. But even if it takes you longer, you've got tons of time. Even if you don't get there 'til 30, you'll still be a millionaire when you're 60. Oh, and since you're already contributing 650 a month, might as well keep on doing that. If you do, you'll turn your 50k into a million in 22 years.

[@miked5357]

My current commuter is a Toyota Camry I bought new in 2002. It's been a great car and has been paid off for a long time! 😂😂😂

[@ErinTalksMoney]

Very nice!

[@rda9441]

My car is 15 years old and 147k miles. I don't plan on upgrading because I don't want car payments. I am hoping and working hard to get to 1.5 million networth at 55.

[@xaldath4265]

Wow. That's some pretty low mileage. My 2015 has that many miles. 😅 Congrats on making the plan and executing it. I have all the faith you'll hit your goal. Keep it up!

[@chaselesser3191]

08 Jeep Wrangler doesn’t even look that old. I still drive a 02 Chevy with 400k miles. I could a new truck going by Dave’s 50% income rule. But I’m trying to reach my some initial retirement goals before time slips away from me. And then I may get a newer truck. Probably something like 25% of my income. Which should still be a nice decent truck.

[@ErinTalksMoney]

I almost got a wrangler back in 2008. The Wrangler looks way cooler. But I actually got a grand Cherokee. 😊 nonetheless, I am still happy with how it looks today.

[@rexstrom5362]

I had zero at 60 years old. At 67 I currently put $1000/month in a Roth IRA, $500/month into a partnership I have with my son and about 5% of my income goes into my workplace retirement account (which is generously matched). My income is about 80,000, so I contribute a high percentage of my income by keeping car and housing expenses very low. I currently have nearly 200,000 saved and expect to retire by age 75 with 7 digits in investments.

[@TheNotimprezed]

My advisor worked out $5.8m as our retirement number, which we are on pace to hit when I'm 53 and my wife will be 49. I plan on working into my 60s, especially if our portfolio continues to perform as it has and see if we can hit an 8 figure balance. I would love that for our kids, a chance at generational wealth.

[@PH-dm8ew]

Hi Erin: Love your channel. Can you possibly go over what Extended Market Funds are and why we should or should not invest in them? Just heard the term and I don't know much about them. Best Regards

[@ErinTalksMoney]

Sure! I love the suggestion 😊

[@JosephDickson]

My wife and i both drive 11 year old Priuses. I expect we'll get another five out of both but I'm planning to replace at least one of them eventually. 😉

[@Christian_Villanueva]

What about you love? When do you plan on "retiring"? How much do you plan on having?

[@trackguy4038]

You started out investing in stocks when you were eight years old. With your son, will you start him out with a target retirement fund, a robo advisor, a total stock market fund or stay with buying a stocks?

[@danh2716]

I opened a fidelity youth account for both my kids when they each hit 13. They started investing in VTI in small bits. As soon as they got jobs I opened a custodial Roth for each of them, where they invest part of their earnings into FSKAX (with a 100% match from the bank of mom&dad.) Frankly, the idea of investing evening a fraction of their investments in anything less than 100% equities seems absurd when their time horizon is 40+ years.

[@tonyboy7911]

Erin great advice. I would like to know exactly what you would invest in to hit a million dollars??

[@dstevens518]

Yourself

[@tonyboy7911]

@@dstevens518 thanks for wasting my time with stupid answers.

[@ErinTalksMoney]

I’m a huge fan of index funds. I’m pretty simple. Something that tracks the S&P 500, or the entire stock market, and I would just stick to it for a long time.

[@joshuawilliams6153]

When it comes to cars people need to just looking into upgrading the equipment. I’ve seen people say they want a new car for push to start of Apple play, etc. You don’t have to get a new car to enjoy those things. You can add things to make heated seats, steering wheel. Everything

[@philochristos]

I just need a good cup holder.

[@ErinTalksMoney]

My mom just got a new car, and I realized my water bottle doesn’t fit in the cupholder. And so I told her there’s no way I can buy a new car if I have to downsize my water bottle. 😂

[@princessunknown3158]

Anything possible even on very low income. Just be frugal.. Can save 10k annually.

[@grossearwax3777]

my impressive goal is to eat a whole pineapple in one setting.

[@deanbarill3182]

When I was young I used to say “ l’d be rich if it wasn’t for cars”

[@AnOldGuy164]

Long term returns in the S&P 500 are 10+% over any time period long enough to matter. But given that the returns for the subject in the video were 10 year returns - the S&P 500 and Nasdaq were up 13% annually, the result is not that impressive. $80K of income less maybe $12K (15%) for saving/investing is $68K of income to live on (and pay taxes on). Starting at the median income and investing 15% is a lot more difficult. But it is good to hear stories about people who have incomes only a bit above the median who live moderate enough lives to save.

[@FaintAura]

Erin, what source did you use to obtain her investments percentile? I only know of the Fed's household net worth survey.

[@ErinTalksMoney]

That’s the source!

[@ErinTalksMoney]

You can check out the site dqydj.com they have built calculators off of the federal reserves data 😊

[@Savage11-b7e]

Actually $ 50,000.00 would last me the rest of my entire life whilst on earth 🎉

[@darinherrick9224]

15% is a huge sacrifice. It's all that's left (if anything is left) after food and rent.

[@danh2716]

In that case, the person needs a roommate.

[@mysticaltyger2009]

@@danh2716 Or they need to earn more...or a combination of both.

[@theduke7616]

Or look for a place that costs 15% less. No one can afford to save if they spend 100% of their money.

[@dstevens518]

Not lacking empathy for your situation, been there, it's tough. But you have to change that situation, cause time's ticking by, and you're not making headway. Make tough choices, find income, cut costs. You'll be glad you did.