If You’re Living Paycheck to Paycheck…Watch This

[@Bynming]

You went from "82% of Americans rate their financial situation as good or very good" to "feelings are not reliable data" in less than 30 seconds Ramit.

[@mequelle]

Thank you! No one else seemed to catch that lol

[@Bum_Hip]

People throw that “feelings” narrative around too easily. Go hurt your wife’s feelings, and see how that works out for you Ramit. I promise you they do matter.

[@lowlowseesee]

@@Bum_Hip he knows that lol. if you watch the love is blind ep from last week the very first thing he talks about is feelings. not to mention it showing up in 100 podcast episodes lol

[@Bum_Hip]

@@lowlowseesee so maybe he could stop contradicting himself then?

[@pn4640]

Ramit for you…he is like Canadian whether so unpredictable especially when he want to sell stuff…facet lol

[@fgarrido1741]

Counterpoint: most of people who go on Caleb's show think they are a 5/10 when in reality they are 30k in debt, don't pay their taxes on time, and have a few bills in collections. Just because they feel they're in a good position, doesn't mean they are. Also, I don't care if people's net worth increases 23-37% if 90% of that increase is because of their home. I know too many people who's only retirement plan is the equity in their house.

[@laundrygoddess4]

Retirement savings have been increasing at a great rate thanks to the Biden economy. That accounts for a lot of the increase in net worth too.

[@JoshHitti]

To be fair, Caleb chooses people in extremely precarious situations for click through. He also states in this video the disconnect between what many people think about their finances vs reality. A simple example can be drawn from the same anecdotes on Caleb’s show: People say they’re drowning and “need” to take debt out, but the vast majority of their spending is reckless (taquitos). The data being shared in this video is accurate, anecdotes aside.

[@iamme7172]

I agree, but some of them rate themselves 5/10 because they consider themselves average, because of the belief that the average american is doing so badly

[@fgarrido1741]

​@@JoshHitti I understand that the data showed in Axios article can be true, people can believe their current financial situation is good or very good and answer that in a survey. I'm just saying it's flawed because people have a terrible sense of what it means to be in a good or very good financial situation. So if you want to really support a claim that people aren't living paycheck to paycheck, you need their financial data analyzed, not their opinion on whether they feel they are good or not.

[@lowlowseesee]

lol @ equity. most people dont know what it means and in current times its almost as bad as crypto. most people are not going to sell their homes and if they do they aren't going to choose a smaller place after that lol. ramits words so its coming from the pro

[@mcbananabread95]

Ramit, I wish you would give more advice to college students. Most of us are truly living paycheck to paycheck and that's not an exaggeration. I'm lucky enough to get scholarships so I don't have to pay for school, but nearly everyone i know has 2 part time jobs while going to college.

[@arealhughes4738]

FACTS!!!

[@AbiTheEngineer]

College was definitely the worst time for me financially so I feel you! I was legit working 3 jobs and going to school full time (I had no family to help financially and was an engineering student lol). Unfortunately, unless you have parents that can support you while in college, there isn't much to do besides trying your best to work while in college. Try tutoring on the side when you can, I worked on weekends at a restaurant where I could get a lot of tips and worked part time as an interpreter call center where I could do school work during down time and I also lived with many roommates and never ate out. The good news is this is temporary! So don't lose hope :D

[@cybertoeknee]

I'm sure if you could look at their finances, you'd find wasteful spending in eating out, socializing activities, and a car payment that would force them to live paycheck to paycheck. Traditional students need to live as frugally as possible until they can get a job in their career field.

[@getrealrae4273]

Check out his book his first book For detailed explanations. In this video go back to minute 7:43 and relisten. He talks about $100 a month. Go over all your expenses. Are you paying for Spotify? Do you have a smartphone with one of the big carriers? Do you Uber or get the occasional takeout? Most college students do. $100 a month seems impossible, but $3.50 a day probably feels more manageable. Switching to a $25 a month phone plan, walking or riding a bike instead of taking the subway/ bus/ Uber…, cheaper groceries/ free food options. There are a lot of ways to make the money available, if earning more money isn’t an option right now. Invest the money and leave it alone. There’s lots of evidence to support that even someone making minimum wage can end up with a million dollars. At one point I could only put $5 a month away, but when an emergency hit, it was nice to see I had the money to cover it.

[@22bouha]

I think college might be too late. Like kids need this info starting at 10th grade if not sooner.

[@autumneagle]

The blueberry comment hit hard. My month to month is spent holding myself to a very strict financial plan and eyeing every purchase because my "spending" money is limited. But that "spending money" is after I max out my $23K 401K and my $7K ROTH IRA and put $500 away for my quarterly college expense ($1500 a class, one class a quarter), put another $500 into personal brokerage and $1500 into savings for annual vacation/big purchases... So I FEEL like I'm always on an edge but i have a huge mote when i really look at it

[@LoveThatSceneChannel]

agreed overall, but I don't know about the sheep farmer, he might have cool ideas 🐑

[@KnineFeline]

Pour one out for that poor called-out sheep farmer. 😆

[@JoshHitti]

Iceland babyyyy

[@learning-from-bs]

😂😂😂

[@roburb73]

I have to call myself out and I fit #1! I always told myself we're living paycheck to paycheck, but we were each investing 25% to our 401(k) and then additional to max our IRA. I had to do the math on what ours would be has we not and then I slapped myself. 🤣

[@acissej821]

This was so incredibly eye opening! Thank you Ramit - this is the type of stuff I love to get corrected on! These talking points are huge fodder for doom and gloom misinformation. Thank you for bringing reality to the situation and giving actionable plans for folks to improve their situation

[@anthonya5842]

😊

[@NormanOkada]

I totally agree! People are comparing about the economy but they spent millions on Amazon Prime Day.

[@nerdacs]

When it comes to the can you afford X luxury good, I am going based on can you save up for it specifically without impacting any other category in your CSP. Like if you want a $2000 mattress, but you only have have $200 extra a month outside of the normal spending and savings, then you could afford it in like 10 months (taxes on the purchase should be included in the amount saved). For me this is one of those evergreen concepts from childhood that still applies in adulthood. In theory you can afford anything, as long as you save up for that thing specifically. Yes it will take time, but all good things in life take time investment.

[@reviewsbygen5591]

So as an immigrant from a poor rural region in Eastern Europe, the biggest difference I see is that Americans consider some luxuries as basic needs because this is what they see everywhere. Like central AC is a huge luxury where I’m from, as well as owning a car, having ginormous grocery stores, traveling, even getting professional haircuts, etc. My monthly budget that I make with my husband has very little expenses because I don’t feel the need to get all the stuff or services many Americans need every month. I go to the library, go on hikes as a family weekly, or find other free hobbies or entertainment. I don’t see the need to go to a restaurant unless it’s Christmas or a birthday. Our expenses are half my husbands sole income as a family of 6 mostly because we have no debt and don’t spend a lot. I think many confuse needs with wants. Like “needing” to spend $10k on an international trip for mental health. That’s pure luxury and toddler behavior.

[@chrism9037]

Great video Ramit. Given how much incorrect data is spouted online these days, it is nice to see a video like this based on facts.

[@AAA-ec4vf]

I swear i ENJOY listening to you!😊

[@MARIAN-rz2ys]

I got a lot of lesson financially...im doing great with your content.Great.GodblessUsAll.hope to see you on the future

[@elizaklein1611]

Hi Ramit - can you do (or link to a video if you have done) a video for retirees? figuring out how to handle our money during retirement is not easy for us as a couple (complicated differences include huge health issues and varied emotional views of money).

[@susanfleming496]

Great idea!

[@michellegreen1072]

Pop on over to Root Financial for James and Ari podcasts

[@susanfleming496]

@michellegreen1072 thanks, I will!

[@benlaine400]

The people who say they live "paycheck to paycheck" while making 6 figures and not budgeting make my blood boil. I don't know when we moved away from the definition being "I can barely meet my financial obligations no matter how much spending I cut and one missed paycheck will put me completely underwater"

[@oliviajasisnki706]

I love watching these as a 23 year old single mom of 2, who works full time and in college full time. I get more money in tax returns and scholarships than I get paid yearly. Hoping to start investing next year. I keep enough savings to feel secure for at least 3 months or if I lose my car and need a new car. I keep an extra savings account I haven’t touched in years besides putting money in as an extra emergency fund.

[@BriantreVino5]

❤❤❤ thanks you for your channel!!!

[@ShellyCap9]

I Love saying No too. All those things where they try to sell you something and will give you a freebie for listening Im like WOOHOO I can say No and get this freebie, if it's worth my time.

[@jeffpearson-w8g]

I'm in the very good class. I can go years without a paycheck.In my stuipd young years I made lots of mistakes. 4 kids living paycheck to paycheck. Working 2 jobs. But I learned. 1) loose the credit cards if you don't have the discipline to pay off the ballance weekly 2) Save 15% off the top for retirement if not more. 3) Make a budget. ( After filling in what must have. Then what's left is for want but not needed. 4) Stop buying unneeded toys. You don't need the latest and greatest. 5) 3 to 6 month rainy day fund.I retired at 65 and my rainy day fund is ALL of my retirement savings. I can live off my social security , a small pension and an annuity I set up. And I still use the excel budget spreadsheet I wrote a long time ago.I update it as needed.

[@avedurham]

I think the issue is really that there's no true definition of "paycheck to paycheck." To me, not living paycheck-to-paycheck means that I have enough money set aside to pay my bills that if I missed at least one paycheck, I could still pay everything on time. But to others, it might mean they don't have any guilt-free spending money or they can't invest. I do think if your lifestyle eats up your entire paycheck, every paycheck, and you're one disaster away from being insolvent, even if you make a boatload of money, you can still be paycheck-to-paycheck. Except in those cases, the underlying cause might be poor decision-making rather than simply not earning enough.

[@zo_471]

Love a fired up Ramit

[@WellnessHealthSafety]

I literally love your explanation, it is eye-opening

[@Brandons125]

I've seen people say they are middle class living paycheck to paycheck making $280k per year, spending $60k on housing, saving $70k in investments and living a 'modest lifestyle' only spending $60k/year on fun while living in a $1 million dollar house in New York. Some people really get out of touch when they start making lots of money. I think part of it is your social circles change as you gain more wealth. If your college or high school friends aren't making the same as you, then you might move on to other friends that do or even make much more than you. They continued saying that their friends make $250k per month and fly on chartered jets regularly. The truth is, there is always someone poorer than you, and there is always someone richer than you, so you will always compare yourself to others, and you will always think you are part of the middle. The audacity to say you are living "paycheck to paycheck" in this situation is ridiculous though.

[@desiv1170]

OK.... I am LITERALLY LOL at the No As A Service bit... ;-)

[@xlerb2286]

The "making financial decisions" was us. You could say we lived paycheck to paycheck - but we were putting ~20% of our income into investments. And we still had enough coming into the checking account for all the monthly bills and discretionary spending. And then there was the cash cushion that we could have lived on for a few months, longer with a bit of belt tightening. We didn't get into that situation overnight, but it was worth it.

[@donaldlyons17]

No you were busy outpacing expenses.... that is a math thing not a behavior thing.... Math is math folks behavior can't always change the math.

[@strongriver7955]

😂 "No" service! People would pay for that!

[@zetachaox]

I often struggle determining whether something is worth the expense or not. I have a hard time quantifying the value of my desire or the future enjoyment I'll obtain out of a purchase.

[@Kelly_Ben]

I've heard some people ask if the purchase is worth xx hours at work. Like, it would take 6 hours of work to pay for that concert ticket, do I like the band enough to go pull a 6 hour extra shift to go? If you wouldn't, it's not worth it. If you'd happily work that 6 hours to go, totally worth it.

[@zetachaox]

@@Kelly_Ben that makes sense. My fear is that I live *too* frugally though; it's very easy for me to dismiss things as non-essential even though I might enjoy them and be able to afford them.

[@rogerssampaio652]

Ramit, I will make the naas happen!

[@AdamNicholas-3d]

*Thank you😊 for this video, do you offer account management or have any recommendations?*

[@JeremiahParker-]

As a beginner investor, it's essential for you to have a guide. Myself I'm guided by Mrs Victoria Walters Hayward, a widely known consultant

[@ChosenKhaza-]

If you’re using a good manager, it’s easier to earn from the market

[@ColtonBeau41]

That's true. a lot of people today have been having lots of disappointments in trading in light of helpless direction and awful consultants

[@TheoXavier-5]

I've been trying to trade but I keep making losses and it's frustrating

[@TheoXavier-5]

Could you suggest a consultant for me?

[@WilliamJones-fk2gg]

Bro, Trenton, New Jersey… Wilbur Section, no household is earning $190,000 try $27,000 maybe after taxes ❤

[@oliverkatusiime924]

Thank you boss

[@Gowst99]

@ 10:45 hits hard, just made realize how someone be financially stupid because of ignorance 😂

[@ValerySherina]

Yes Ramit. Thank you. The economy is good right now and has been on the rise for the last few years. What would your advice be in the volatile times like we have coming?

[@baddboo]

Love Ramit, but the tone in this one is passionate and tense.

[@Drewbarksdale10]

This is a question for those who like to use Ramit’s method of separating money with multiple checking and saving accounts: do you find this system easy to maintain? Obviously, you set up automatic transfers to simplify some of the process , but overall it seems like you have to transfer a lot of money around when you spend I.E. save for a trip in savings account and then spending money for that trip by transferring back to a checking account / credit card. Huge fan of the content! I’d just like to get a sense of others perspective .

[@thorin01]

A lot of banks give people the ability to categorize within an account. If that’s not available then a lot of financial software allows for the same thing. I use excel and when I enter the deposit it automatically splits that deposit into my preferred categories.

[@JoshHitti]

Most employers have the flexibility to automatically deposit a portion of your paycheck to whichever accounts you’d like. If they don’t, you can set your own bank account up to transfer money directly into another account, savings, etc. It’s similar to any other habit in my opinion

[@themurderbotfeed7688]

So, I dont have his exact system cuz I dont live in the states and we dont have any tax-deferred/tax-advantaged things here. No ira, 401ks etc. i take paycheck it hits checking in direct deposit. From that, I take 30% to an investment account that automatically distributes among my chosen index funds. 5% goes to a emergency savings account. Its already full with 9 months emergency, so that amount is just to cover once a year expenses, like insurance and repairs for my scooter etc. there is a debit card associated with that I can spend directly from so I dont need to transfer money back to checking unless its to cover rent, and I keep a 1k buffer in checking so only after 2 months of unemployemnt would i need to start transferring. 5% goes to separate “fun money savings” account that has a credit card attached to it I can spend from. That card and account were chosen bcuz of no fee cash withdrawals abroad, no fee currency exchange etc and some modest travel rewards on rentals etc. not the best available but the ones with better rewards had really high fees that made no sense to my expenses. When I travel (or use fun money) I use that specific card to pay directly from that account, I dont transfer back to checking. The rest stays in checking with cashback cc to cover normal expenses like groceries/gas etc. there is some left over every month I leave as buffer and once a year before tax season I transfer anything over 1k in checking to investment. So no, I dont feel like I transfer a lot back and forth cuz I dont. Its two automatic tranfers a month from cheking. everything is automatic and it actually helps me mentally to have different cards and accounts for each thing. Also helps to plan vacation spending just by looking at the fun money account so it makes deciding easier.

[@MissGirl1450]

It's really an individual thing that can take some trial and error to figure out. I was putting too much in buckets and then doing a lot of transfers every week. Now when my paycheck hits my account after transfers, I leave enough money in there for two weeks plus a little extra for smaller amounts of guilt-free spending and odds and ends. The money that gets automatically transferred to (outside of investing) my buckets (all at the same bank just different accounts) goes to House/Car, Guilt-Free Spending, Dog Fund, and Emergency Fund. I don't do separate savings accounts for travel just because I don't plan that much ahead. Technically the House/Car fund could be separated into House Repairs, Car Repairs, Future Car, and Future House, but that would just over-complicate things and I don't know how much each would need. When I travel, I try to use a single credit card and then do one big transfer at the end.

[@nahguacm]

I use YNAB which lets me easily categorize my money

[@rebeltheharem7028]

Calling data about people's feelings being unreliable and then using another source about people's feelings, isn't a good counter. Granted, I do agree with you that a majority of Americans are not living pay check to pay check, because they have pensions and retirement plans which they pay into. And just because they made dumb financial decisions, and now have a lot of debt to pay off, doesn't mean they aren't living pay check to paycheck. It means they ARE dumb AND living pay check to pay check.

[@Christina-nx1tr]

It would appear that there are many Americans who believe those stats and have that mental attitude about their money and voted accordingly.

[@appleztooranges]

This is a great video.

[@DeltaG117]

Feelings don't care about your facts

[@acceleration1146]

What are you talking about? Lol 😂 FACTS don't care about your feelings!

[@DeltaG117]

@@acceleration1146 There are times when the opposite is true. The people who are feeling the pain and anguish from living paycheck to paycheck in a constant loop don't usually respond well to "the economy is actually really good and at all time highs lol you're just bad with money you silly brokey just find the spare coins in your couch and invest them."

[@Kelly_Ben]

They're right... so many poor financial and life decisions are made based on emotions, despite the fact that common sense and logic say NO. Hearing Ramit say to say No and avoid credit card debt to be financially stable, people nod their heads, then give in and buy their kids the latest whatever, because they worry they won't be a good parent if they don't. Feelings don't care about facts.

[@djkt1024]

I'm investing 1500 to a ring systen as me and my wife work at ngiht and live in a bad part of town and that is an investement as it is security

[@charletfoster8917]

Thanks for sharing the Truth with your subbies, we need this badly. Americans have waaay more💵 than reported🙏🏿😊

[@BerneseNoef]

The things you name are investments in your health Ramit. There are more ways of investing than money.

[@justdavebz]

I felt targeted when you said my espresso machine is not an investment…

[@elizabeths.3634]

🤔In general, it is an investment if it is putting money into your pocket. IF your espresso machine is for your coffee shop business, I would say it just might qualify as an investment....

[@NikStar210]

I know this guy who says he lives ptp, forgetting that he contributes to 401k and builds equity via mortgage.

[@itgamer4143]

I always feel poor even though I'm not

[@evenfaisal]

That's lack of assets.

[@scarpelliproductions]

Hey Ramit, great video! I have a question about handling savings goals, like for a vacation. When it’s time to use the money you’ve saved, what’s your approach? Do you add the amount back in as income for that month and track the expenses as part of your budget or do you have a different approach? Thanks!

[@svetlanadreher7190]

I’m not Ramit but some apps like EveryDollar have a fund savings budget lines, so when the time comes to spend that money you just take it out from that fund line in the budget.

[@laundrygoddess4]

That's what I do.

[@jochenkraus7016]

You have put it into the budget while saving so I'd put it as a one time expense when actually spending the money. Then this month might end with more spent than income, but who cares?

[@amanda.c.ice.]

That’s how I do it

[@lalakuma9]

These surveys seem to be based on how people feel about their finances instead of their actual net worth. After seeing the statistics, I still have no idea how Americans are doing financially, in reality.

[@arwing1164]

you mentioned that the guilt free is also for travel but when is it that the percentage for savings relate to saving for a vacation and the percentage of guilt free? like do I cut my guilt free by 5% to put to savings to save for the vacation or what exactly?

[@roguestowl2280]

I’m going to conduct a survey of all sheep farmers world wide asking them where I should go on my next vacation.

[@KitchenRoach]

Please consider making a Spanish channel. My parents are in dire need of some Ramit wisdom

[@MoneyChanger02]

11:56 sounds like a great deal, how could I pass this up?

[@lovelyyoori4265]

lol need NAS subscription service

[@xWapWapx]

Hi Ramith, i love you videos however i do have a question. How applicable would you rate your % splits in your CSP in other countries eg. in Europe such as Germany? many different factors such as higher tax, social security systems such as healthcare being in place etc. After a big event in my life i decided to mercilessly reorganize my finances and inbetween many good advices found your golden channel - however would appreciate if you could look into this :)

[@topezrosser2759]

That’s a good idea , a fun money account

[@tiz005]

Quick Question: For the conscious spending plan, should the year end bonus and yearly company shares be considered as part of the gross monthly income? Or should those yearly compensations be considered separate?

[@daascia]

I had $17 in my paycheck last month. I have even less this month cause I had to use credit cards to pull off Christmas. I don't know a single person not living paycheck to paycheck. Feelings may not be reliable data. But my literal existance proves you wrong. Or maybe I'm just poorer than I thought. I really dislike those surveys, 85% of Americans *etc* *etc* They did not ask every American and unless you do you won't have truely accurate numbers.

[@justindair1701]

Naw im sure im living paycheck to paycheck lol 😂 thats why im watching these videos 😂

[@Toptechitsimracing9601]

I need to stop be impulsive i am trying to get finances in place, apart from working benefits , i have a second RA which i have started with a small amount each month , but i need to stop wasting money, recently bought a house and feeling like budget is very tight , any guidence ?

[@YanerysM]

Do you count your employer 401k match to that 10% for investments?

[@CurrentlyChaotic]

I feel like 35% is so high for guilt-free spending. Is this an indicator that I'm more frugal or maybe some kind of scarcity mindset?

[@astrumignis2030]

Im a big fan of yours, but I doubt us Americans are doing that good, because Consumer Debt is in the Billions and beyond. Im all for positivity, but I Believe the Payroll Source is credible.

[@Molaleni]

8:36 oh, okay! Next, you are gonna tell us that dollar cost averaging into the PA lottery Powerball fund is not investing or a way to diversify my portfolio 😏

[@SuzanneU]

Both the 79% and 82% are feelings-based and equally unreliable. However, I'm interested in the data about median investment amounts. These are real figures - where did they come from? I'd also like to know how this correlates - if at all - with age. A 60-year-old with median level investments and Social Security as their only other source of income could be in a very risky situation.

[@rayanarenee]

Your mattress is absolutely an investment…

[@Raphanne]

A personal trainer, a good mattress and quality food are an investment. For your health, future and longevity. The greatest wealth out there. 😊 Yes, I do buy organic blueberries.

[@jochenkraus7016]

Still not an investment. It can be well spent money if it's not financed with "bad debt" and the money isn't needed elsewhere.

[@nahguacm]

They are good things to spend money on! They just don't provide a financial ROI

[@defheescollard-sx4nh]

same here!!

[@legatobluzummer]

I do in fact live pay check to pay check. Because I now keep enough money for rent, food for 2 weeks (until the next pay check comes in), gas for 2 weeks (same deal) and put the rest into stocks. I also put my VA disability into stocks because that's money I never had anyway.

[@artviigen9316]

link is not working :)

[@anthonygarza9284]

I'm 58 , just getting started, have $9,500 in401K and $2,500 in the bank. Can you help me? No credit cards

[@rosemyer]

Hi are you promoting a what’s app group on investing ?

[@ramitsethi]

No, that's a scam

[@carmenmorales8145]

I think 10% savings is too low

[@CashMoneyMoore]

NO

[@carolynn0990]

Great video. I respectfully disagree about your point on “other” investments. While I agree there are diminishing returns when you cross the border of good quality to luxury to me there is real monetary value in some of the items you listed. -Having a quality mattress for quality sleep has real health benefits that can in long run reduce disease or medical bills -putting money into better quality clothes can save money in terms of longevity , repairs etc. also depending on your field it may help with confidence, executive presence etc which can result in monetary gains such as increased sales, promotions I think the viewpoint is nuanced because the calculations aren’t as easy to get as let’s say an ETF however to me it doesn’t make the gains any less real

[@yanab4284]

I wonder if that data is skewed from the last than 1%…

[@noelmarkham]

No

[@noelmarkham]

Feels good

[@Sabre2Dance]

Well, technically they are living paycheck to paycheck. I think what is implied with 'living paycheck to paycheck' is wrong, as it implies that people are not making enough money, which isn't always the case. As for the savings / checking balance, I think it's a bit more nuanced than that, since 30% of Americans are at least 6k in debt, so I'm assuming their savings / checking account are technically lower. We've seen in your podcasts, for instance, that people are holding onto debt even if they have money in their other accounts. Of course, I do agree that people tend to latch onto stats that give them an excuse to hold onto their current spending habits. ;)

[@donaldlyons17]

They are not "broke" just for no reasons.... like it alawys cost to do everything including the basics so people who don't generate will be the losers in the end....

[@alexisballard1459]

Ramit skipped Step Zero - make enough income / have any margin at all

[@jochenkraus7016]

Quite same people on his or similar channels are in debt while having enough income that I'd run out of ideas what to get after only a few years. On the other hand that'svery interesting to see that more money doesn'talways solveall money problems. .

[@SamZilla-h4m]

Your 82% is also not true. The Axios article actually says 63% INCLUDING 19%. So it's 63%, not 63 plus 19. While you have the big picture right, this is a funny mistake to make given what you know.

[@Savannah-ed4rv]

If you're saying that so many people have a net worth of $190,000, I hope that's not including a mortgage on a home because if you have a mortgage on a home that is not an asset. It's a liability and it's a debt.

[@ian4040]

I must not be the median American household , because we're barely able to tread water right now and have lots of credit card debt just to pay for the necessities. I like Ramit's advice, but he's definitely out of touch with a large swath of America.

[@RN_CapitalX]

Need more advice on people making 50k down my guy. I make 180 in year's, I wasn't born or brought with wealthy family or very well education. I wish I brought home 8k a month. Knowing what I know now, I for sure will be wealthy with that amount of money. But I do like your break down with money but I need more money lol to

[@dylanfogarty2771]

This is a bad intro. Which is surprising from Ramit. Many people have already identified the issues with the 3 statistics Ramit lead with at the beginning of this video

[@msjaylairvin]

Okay but median is so vague??? Is it a normal distribution? No it’s not. Not a great statistically relevant argument. Go speak to people in low income areas.

[@josefj1776]

It is just like that 63% don’t have $400 is a myth because the real question asked was “would you put an unexpected expense of $400 on a credit card or pay with cash?” for me, I would pay with a card and then pay it off .

[@donaldlyons17]

Well no the question is if people have cash... not credit or some alt form of payment....

[@josefj1776]

@ nope that is what is reported but it isn't the question that is asked.

[@keshiasmith2162]

Do you recommend financially preparing for a trump administration? As in, liquidating assets, pulling cash from bank accts, etc?

[@keshiasmith2162]

A second *

[@BobSure_AKA_PotatoSmasher]

If you budget down to Zero then you're TECHNICALLY living paycheck to paycheck. I this concept gets a bad rap. #Idiocracy

[@trustinjesus24-7]

More fact checks!

[@shaqisumari304]

Dont worry Mr Trump will bring more wealth to all😊😊😊😊

[@saeedhossain6099]

bro, stop playing soft core economist, you're embarrising yourself. your averages are means not medians..... so talk about misleading ....

[@irenetassie7528]

Fun fact, mathematically speaking average and mean are synonymous. The median is the number(s) in the middle of the data. When you make financial decisions based on the median, like what would an affordable home cost, you are still leaving out the lowest 50% of earners.

[@KidneyBeanz]

Then please explain the Trump victory

[@luisvargas2192]

Ramit is so sad average people don't agree with him 😂 people aren't doing good in this country and voted that way - no amount of stats and telling people things are great will change that

[@brandonpike7046]

Ayyyyy first

[@adamx182]

"Everything is fine and if you're poor it's your fault"

[@JoshHitti]

I used to have this mindset as well and project my own issues onto others. He clearly takes an empathetic approach with people and in this video he’s showing data accurately. Not one time does he disparage “poor” people. Videos like this should be encouraging - would you rather have confirmation bias via doom and gloom vids with misleading data for comfort?

[@adamx182]

​@@JoshHitti Imo the video is just confirmation bias that poverty is not a structural issue. Would rather have a discussion of poverty that acknowledges the extent to which it is necessitated by capitalism and doesn't start by downplaying its existence in the first place since that would implicate our own positions within capitalism. Can talk about about smart financial decisions without pretending that people who actually live paycheck to paycheck basically don't exist or matter

[@JoshHitti]

@@adamx182it’s not, he doesn’t talk about poverty in this video in depth (but has in the past). It’s addressing a study that’s parroted which is false. Where does he say poverty isn’t an issue? What data points are invalid?

[@adamx182]

@@JoshHitti The video title is "If You're Living Paycheck to Paycheck... Watch This" and the thesis as stated at 2:01 is basically "I'm sorry you feel that way." If he does address poverty and the dependent relationship that wealth has with poverty under capitalism in other videos then that's great, but I don't think this video is actually for people living paycheck to paycheck. As far as data points I don't think the video purports to be a study with data points but I can point to the example at 2:13 to argue that this video is not actually for people living paycheck to paycheck but it's for millionaires who do not actually understand what it means to be a paycheck away from homelessness. To tell people from the latter group, which are included per the video's title, that their poverty is just a matter of their perspective is unproductive at the very least

[@JoshHitti]

@@adamx182to each their own. Ask him if he doesn’t believe there are external powers that increase the poverty rate. I’m confident he understands nuance, as do I. I was homeless and grew up in poverty. He’s the son of immigrant parents and I’m positive he has the capacity to empathize

[@mohammadmustafa2594]

A luxury watch can be an investment and still treat yourself and feel good

[@lizcademy4809]

Only if you are willing to sell it if the value rises enough.

[@kayjay7865]

Can u explain how a luxury watch is an investment

[@lizcademy4809]

@@kayjay7865 It's no different from buying a piece of fine art or a historical artifact. You purchase a watch that you feel will increase in price over the years, and sell when that price is high enough. You might choose to wear th watch; better if you don't. It's an investment, not a functional object. This also usually applies only to *very* expensive watches.

[@mohammadmustafa2594]

@@kayjay7865 if you buy the right brand right model, it will increase in value overtime or at least maintains it. That’s why people invest in them

[@SuzanneU]

@@lizcademy4809Thank you!!! Plus the watch must be in pristine condition at the time of sale, so you shouldn't actually wear it.