Everything You Need to Know About Finances in Your 20s

[@daviemanuel688]

I wasn't financially free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!Very inspiring! I love this

[@MajorCockbern]

I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.

[@daviemanuel688]

@@MajorCockbern Her name is Christy Vallen D'souza. Look her up online, she is quite popular in the united states and she is a certified financial adviser in order to put you through the procedures of achieving your dream portfolio.

[@MajorCockbern]

@@daviemanuel688 That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

[@MajorCockbern]

@@daviemanuel688 Thank you, i just found her website.

[@daviemanuel688]

@@MajorCockbern I do the same thing, I do not have big money on bank account. With the right property in market and sales advisor, we will be on right track. Right now 3 estate done with loans which I turn to plantation and earn money from it, 2 more to go.

[@mzuggy]

I am 24 now and I've been saving every penny I can get my hands on since I was 16! Been maxing out my Roth IRA every year since 18. I appreciate your podcast and all of your pragmatic and encouraging advice 😄

[@TBIhope]

I haven’t had an easy experience healthwise since I was 16. I got cancer, fell 70 feet off a cliff, had a psychiatric emergency in the pandemic, and got in a car crash with a drunk driver this past summer. I’m not going to be without health insurance for even one month when I age out of my parents’ insurance!

[@charity7273]

😲

[@victorbaird8220]

Be more careful with your choices in life

[@TBIhope]

@@victorbaird8220 how exactly was I supposed to prevent cancer or the drunk driver or the pandemic? The cliff was my fault, and I’ve stopped hiking there, but everything else wasn’t my fault.

[@m3ttleheart125]

@@TBIhope I mean eating awful , processed and “added sugar” foods and smoking certain carcinogens so that I suppose that but I get what you mean

[@TBIhope]

@@m3ttleheart125 I got ovarian cancer, not lung cancer or esophageal cancer. Sometimes you can prevent cancer, but sometimes you can’t.

[@joshvoigt7505]

I'm about to turn 27, and due to immigration hold ups after graduating college I'm only starting my wealth building journey now. Episodes like this give me a hell of a lot of confidence that it can be possible, even if I'm behind where I'd like to be. Thanks guys!

[@irenehgb]

you’re doing great! good luck

[@michaelswami]

I feel confident you will succeed, just because you are watching these guys. Always be buying!

[@JazzminelLocher]

I’m 20 still living with my parents. I want to learn more about finances because I feel so behind.

[@JazzminelLocher]

I should’ve learned more about it at 14 or 15

[@gangofmac2172]

Bro. Being 20 with your parents is perfectly fine.

[@juanamuom2125]

hey cutie can i have our contact please?

[@6200julie]

I wish I knew your channel when I was in my 20s. Just want to thank you for creating this wonderful content. It's so reassuring to listen to you, especially in such a volatile market.

[@moestocks4446]

It’s not too late to invest. Government bonds are such a safe haven at this time. Message me if you wanna know more

[@co8248]

$6,500 is the new amount for the Roth account contributions

[@jaredbills72]

Wish I had this analysis in my 20s. Turning 33 this year and feel I'm far behind. It's just been tough with moving costs, rent increases, inflation, job changes. Ugh.

[@PhilipBarrett1]

The fact that you are even open to hearing this kind of quality information means you are better off than most. Take it one step at a time, but these guys info is golden.

[@drewclements04]

3 things that bother me about that reel is that it took 15 years to go from 1 mil to 2 mil... Not realistic because it assumes a 5% annual gain over a 15 year period... Also why wait to 65? 59.5 is when you can start. It also neglects to mention that you can save in a taxable account and leave earlier if you'd like.

[@moneyAndSavings]

This is definitely one of the best shows on money that I have found on KZbin. Thank you so much for sharing your expertise and insights with us❗❗

[@connordeere4878]

I'm mid 20s and I believe in YOLO, but I believe in saving for the future. Save up for holidays and goals but don't ruin your later years.

[@Hermdognation]

Great video! thanks. Any advice for heading into my thirties?

[@525joshua1]

Imagine if these guys did these talks at colleges and high schools around the United States would change, hopefully.

[@vitalia1021]

Would be a great idea for same for people in 30s, 40s, 50s, 60s…

[@hmmmm4902]

That will probably be there next few streams

[@MoneyGuyShow]

This content exists and we will continue to create it! We have also done "Everything You Need to Know About Finances in Your 30s": kzbin.info/www/bejne/oaDHd4Jue9-hf6c And check out our other "By Age" content on the channel and at moneyguy.com. Here are two popular episodes: Average Net Worth By Age in 2023: kzbin.info/www/bejne/raDJaIF_nMehn9U Average 401k By Age in 2022 (to be updated soon): kzbin.info/www/bejne/iHbLiYJrmN6njck

[@Kalani86]

I am sharing this with my 20-something year-old family members! They need it! Haha

[@daizzz7899]

I would love if you guys could do an episode on savings and investments for families with a stay at home parent and how much you should try to save/ invest/ and aim for as a couple. I went from working to being a stay at home mom after having my baby while we are still investing and putting away 20% is that enough for two people?

[@np5246]

Since the formula does not literally represent the average or median net worth of that age, wouldn't a better name be something like "Moderate Accumulator of Wealth" or "Decent Accumulator of Wealth"?

[@davewhite756]

Can you redo the examples with the participants living in CA while working and NV, FL or TX for retirement, and the traditional user investing the federal and state tax savings in a taxable account. My suspicion is the traditional user can live off the taxable account and back door up to the standard deduction the Ira and 401k into Roth.

[@roysherwin9348]

Hi @The Money Guy Show, should I move my 401k + Roth into self directed? Fund is 0.42% vs an ETF like VTI 0.03% expense ratio. Thanks for the great content!

[@reaper-sz5tm]

Yes, move it

[@nathaniel.j]

Yes! Move that and save the money.

[@vicentecabrera9245]

It’s impossible to have 170k saved 1.5 years out of college… I only have 50k saved working through college and now.

[@qnaqna321]

But ideally, provided you graduate and make more money, you can catch up!

[@franklintyler4652]

It’s not impossible. It’s nearly impossible.

[@bengruenbaum8907]

Love the new intro!

[@LEGENDOFSEVENN]

Im 25 and make 100k a year. Goal is to retire before 35

[@argenisperez7810]

Why? I am also 26 w/ 100+ year and do not see me wanting to retire anytime soon…

[@Carolbaskin23]

@@argenisperez7810I’m 24 make 100+ my goal is to buy rental properties untill I can solely earn my income from renting. Renters will pay ur mortgage+ cash flow + house appreciation. I think it’s better than a convintional retirement plan.

[@greenlantern1986]

7 weeks into the new year and we're already running a clip show?

[@dietbajablast5790]

Bo is on vacation, but with that said how many times can they possibly cover the same material. IMO they need to try a new format(s), mix things up in the style of their TikTok reaction videos.

[@lonz0_0]

Question for you all or people in the comments: Should we try to replace 80% or 100% of our pre-retirement income? I feel like they always talk about 100%? Thanks!

[@deesplash7087]

They literally talked about replacing 80% of your w-2/ pre-retirement income within like the first 10 mins of the show. But I think you should try to replace 100%, that’s my goal at least! I want pure FI

[@JQMusic5]

80% is a valid approach, and so is 100%. Just depends on how many expenses you expect to have, and what type of lifestyle you want to live now vs then

[@lonz0_0]

@@deesplash7087 lol I know, I meant until now I usually always hear them say 100% so was curious as to why they said 80%

[@dietbajablast5790]

You're not saving money during retirement. So 70 - 80% works out.

[@mattcanterbury]

So they talk about knowing your number and all that jazz. Really I think a good way to look at it is how much percentage are you living on now and how much do you want to live on when you retire. They could be the same, more or less. Don't look at dollar amount, look at percentage. So for us...we save 40% of our income, pay somewhere around 28% effective in all taxes (fed, state, fica). So our expenses are about 32% of our income. Leave some margin (about 15% for fed and state taxes in retirement) I estimate that we need around 50-55% of whatever our income is to retire. This is much less than what money guys say will be replaced, but 60% max is what we need since our incomes and savings rates are fairly high. I actually have a cool spreadsheet I created that allows you type in your age, savings rate, expenses rate, current savings amount, and income (actually not relevant for this calculation as we are looking at percentages). It will then spit out your retirement age. I use 8% return, 3.5% withdrawal rate, inflation of 3% for expenses, and raises of of 3%.

[@tristangirod1855]

My average family member has died between 50-72 , what should I do

[@vsbb13]

Sorry but the way you guys calculate Roth Vs Traditional If you put 6.000 traditional, in Roth you would put 4000 (30% tax to round it up) It is important to tell, Roth is great if you're into a lower bracket, traditional if you are in a higher bracket and expect taxes to lower when you retire Saying that, I would rather have the Roth because it is easier to predict

[@Historyteacheraz]

The best way to build wealth is to start investing as a teenager. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great investing book for teens.

[@PeanutButter123]

Age 24 with a net worth of nearly 6 figures. Have a vehicle paying monthly on insurance. Looking to hit the milestone of 138k net worth asap

[@isellhuckabee]

I feel like I’ve seen this exact video before…is good a repost?

[@MoneyGuyShow]

This is a compilation of our best clips for people in their 20s! 🔥

[@isellhuckabee]

@@MoneyGuyShow amazing! I’m 23. love your show

[@parkermichael620]

The main reason put in 401k is match and tax benefits. If you're not making alot of money in your 20s your in a lower tax bracket so why not save that money outside a 401k?

[@Krashoan]

I think this is generally why the Roth is so heavily recommended for young people. You get your 401k match, and then take advantage of paying the low taxes to get tax-free growth from the Roth. If you take it completely outside of retirement accounts you're constantly paying taxes on growth.

[@parkermichael620]

@@Krashoan also if your 20 that's 39 years before you can touch the money without a penalty. If you 50 its only 9 nine years.

[@aaronadamson7463]

That's not technically true, you can pull as much money out of a Roth as you put in, just nothing more. So if you put 6k in a Roth, and it grows to 9k in a few years, you can still pull out up to that 6k out penalty free. Although I would really recommend against doing that since you would be knee capping yoyrself

[@brennancarr2611]

​@@parkermichael620bro the point is to not touch it lmfao

[@alonsoochoa458]

Hello! Im 19 and I just want to make sure I doing everything correct. I want to F.I. maybe even R.E. by 30. I know its a tight gap and when I only make $11 hr part time, studying computer science. What should I be doing?

[@alonsoochoa458]

I also understand I should have started to become financially literate at an earlier age, so what should I already have figured out?

[@InvalidFingerprint]

19yo is an incredibly young age to be on top of this! Invest in YOURSELF so that you can enjoy life and have a great income to save/invest as much as possible. Work hard now, and it'll pay crazy dividends for the rest of your life. Stay out of debt! Don't have any care for what your peers say about buying a nice car (you don't need it), wearing fancy, designer clothing (you don't need it), eating out all the time (learn how to cook, it's fun and cheap and easy).

[@eq4175]

Both of my sons were computer science majors at college. They both were able to get paid internships since freshman year. One of them even had a matching 401k as an intern. I had both of them start maxing out their Roth's account since 18yrs old. I have had them follow the FOO steps. They both have been saving, but I doubt they will hit FIRE by age 30. Fortunately being a computer science major has allowed them to get high paying jobs. I being an old guy used my 401k over many years to make my wealth, since I was not college educated. I would say look for paid internships while in college and start investing. Good luck!

[@claypope5315]

You won't be able to access the money in retirement accounts, 401K or IRA, at age thirty. You'll need to invest through a taxable account to reach the goal you are suggesting. My quick advice would be to read as many books as you can in your spare time and find a knowledgeable mentor that can give you advice along your journey.

[@AdamConstantine]

What happens if you save 20% and that’s more than allowed per year for 401k? What happens if you max out

[@patrickandresen4356]

Max a Roth IRA (use backdoor if you earn over the limit), then put any extra into a brokerage account

[@stevenjuan259]

The stock market's dividends motivated me to start investing. What counts, in my opinion, is that you will be able to live off of dividends without selling if you invest and make more money in addition to payouts. It suggests that you can give your children that advantage, giving them a head start in life. I've invested more than $600k throughout the years in dividend stocks; I'm still buying more today and will keep doing so until the price drops even further.

[@josephlee4001]

Wow, that sounds great, but how can I contact your investment coach?

[@josephlee4001]

I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look him up and send him a message. You've truly motivated me. God's blessings on you

[@H4lovideo]

I’m curious to know how y’all feel about high deductible health plans for 20 year olds/ people who only do annual checkups no health conditions?

[@vicenteyanez671]

They are ok, you should just have the money to pay de deductible saved in your emergency fund. If you don’t actually use it you’ll save money on the long run, probably you should calculate the payback period to make sure if you feel comfortable with that level of risk.

[@aaronadamson7463]

The nice thing about a high deductible health plan is that it should make you eligible for an HSA, which is actually better than a Roth retirement account

[@RiseUpRenovation]

I'm 28 years old with a mortgage two car payments and three kids and own my own small business is this something I should do? Any tips and tricks would help...thanks .

[@ericpilon6715]

its kinda crazy that so many ppl dont invest. im not even 21 and ive almost got 26000 invested already

[@Trintron46]

Sadly lots of us had no idea about any of this till we got older. I ran away from a poor home at 17 and just started to learn how to save properly at 26

[@jomes7644]

I literally didn’t know anything about investing until a month ago. Already got 3250 in a HYSA and around 750 in a Roth IRA. Just had 8k sitting in my checking account for no reason

[@TacticalBro]

Is it better to pay a Roth IRA in full 6500 or 250 a check over 26 checks

[@seanlevi2618]

I would assume 250 a check because then that can grow as you keep investing

[@Praneesh]

looks first 10 mins is different video i have already seen

[@robby95036]

Is therte data that includes iras and hysas? myu contribution rate into 401ks is really low but i use other accounts instead.

[@aaronadamson7463]

Your HSA is going to be your most lucrative account. The problem is it's restrictive nature and low ceiling for capped contributions

[@franklintyler4652]

That would be net worth data. This captures all liabilities and assets.

[@robby95036]

@@franklintyler4652 yes but if someone puts 10% into their HSA and IRA combined but only 3-5% into their 401k, then they look a lot worse in these studies.

[@aerojoea]

Where should I be at 58?

[@aerojoea]

How do I submit a question?

[@Bodmanting1321]

The 401(k) percentage of 7.5 for an average doesn’t include things like Roth IRA

[@morbotheturtle3796]

Most dont have roth iras though. If you ask around, not even 10% of people could tell you what a ira is, let alone how to get into one.

[@aaronadamson7463]

Yeah, tbh I don't really trust that figure. Most people that age don't even have much of a savings account, let alone a 401k. I wonder if that average is across people that age that are working, or across people that age that have a 401k. Something about that figure just doesn't add up to me

[@tankberserkererer]

This is a Re upload?

[@MoneyGuyShow]

This is a compilation of our best clips for people in their 20s! 🔥

[@tankberserkererer]

Ohhh I was only listening, didn’t realize it was a snag of multiple clips.

[@mwagner1996]

This clip at 38:06 is the first time I've felt like the Money Guys have been way off base. How is a 25 year old supposed to hit 2x their salary in net worth if any college educated person would have only been out of college for 2.5 years at that salary? I get wanting to set an aspirational target, but that doesn't seem feasible unless you left college with a 70k net worth. Idk, seems like a useless table, and an unhelpful clip. Maybe it's written just for successful welders who never went to college? Although the oxford dictionary does say an "archaic" definition of prodigious is "unnatural", and that certainly seems unnatural to me..

[@deesplash7087]

Cereal is glorified junk food @Bo 😂 there’s only a few brands or legit healthy cereal and they’re very expensive ie. “The magic spoon” for example

[@dietbajablast5790]

You take that back. CTC is life

[@Tina-sw5dy]

6:55 Cool

[@Tina-sw5dy]

7:51

[@Username_CC_]

It's wild that 25% of savings isn't even maxing a 401k. That money really is locked up if people are not diversified into Roth and brokerage

[@Chessdude4]

That’s why I only put 15% into 401k and working to pay off house before I up the percentage

[@Chessdude4]

Paying house off in total of 4-5 years.. which will increase cash flow by my mortgage payment.. way more margin to invest even 50% into 401k and other vehicles

[@aaronadamson7463]

The only issue with that, is that it doesn't account for opportunity loss. If your mortgage is only say 4 percent, annually, and the average ROI in your 401k is around 10 percent, you're technically losing money by paying off the mortgage. Not saying it's a totally bad idea, but mathematically likely suboptimal

[@Chessdude4]

@@aaronadamson7463 ya but I’d rather miss the the 10% for 2 years, get the house paid off and then start putting say 50% into 401k with no payments

[@franklintyler4652]

@@Chessdude4 that’s fine… as long as you know it is suboptimal mathematically. What you’re doing is what a lot of risk averse people do. So, it’s fine as long as you know it’s not maximizing your net worth… which is okay.

[@dolevmazker736]

The lump sum of what it takes to be a millionaire actually made me very happy at 25. I am still going way more than that. THANKS money guy team

[@Ricocase]

Real inflation is 18% w/ food and fuel. Rule of 72/18 = 4 years til 401k $ halved. Why invest and hope for 7%? 401k for compounding wall street fees.

[@franklintyler4652]

This calculation is totally wrong … that is what would happen to cash (if I agreed that inflation was that high). Not what would happen to funds invested in the overall stock market. Noob comment.

[@Trintron46]

😂 "When You're in your 20s, you're healthy" This is actually a very ableist view of the world and is detrimental to many.

[@tigereyes3583]

I am sorry, but it’s the same message over and over

[@morbotheturtle3796]

Your point? As long as Americans arent doing it, then it needs to be repeated.