Net Worth To Be in America's Upper, Middle & Lower Class

A couple of weeks ago I did a video that looked at the income necessary to be in the upper, middle and lower income brackets in America. Well here comes a follow up video to that one. As a handful of viewers were quick to point out, they thought income was perhaps not the best metric for this. Instead, they thought net worth would be a better metric - hence this follow up video. This one looks at the NET WORTH. necessary to be in the 5 ✋ different quintiles in America as designated by the US Census Bureau.
Those quintiles are evenly separated into 20% categories.
Do you think net worth is a better metric? Let me know your thoughts down below!
Some of my favorite books: amzn.to/3KF3tlr
Thanks for watching ‪@ErinTalksMoney‬ I appreciate you!
Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
Looking for more money videos, I post new videos every week, subscribe to my channel: / midge087
While you are here, why not check out some of my other videos:
Income necessary to be in Americas Upper, Middle & Lower Income Brackets: • Income To Be In Americ...
What is the average income in America by state: • Average Income By State
How much do you need to live off dividends: • How Much Do You Need I...
Crazy ways we waste money: • Insane Things We Waste...
Looking to start investing in individual stocks, join Robinhood and get a free stock: join.robinhood.com/erinm1666
#networth #middleclass

[@CraigNAnderson]

Great content in your channel, Erin! I’m 53 and my wife and I reached $1M net worth in 2017, five years later it’s $2.4M. Our yearly salary is a little over $100K. We drive older cars, cook at home, eat leftovers, and have 2 in college. We saved for college and our boys help by working. They will graduate debt free.

[@zzanatos2001]

My demographics are similar to yours, and my wife and I also live a very modest lifestyle. I would love to know how you grew your net worth so much over the past five years. I'm guessing real estate investments.

[@CraigNAnderson]

@@zzanatos2001 Glad to hear, Zach! My N.W. grew through a combination of saving, 401(K) and Roth investment growth, and home equity. We have no other real estate.

[@fredweller1086]

Right there with you. I'm retiring early, no debt. Kids are taken care of. Building my dream home on 11 acres, looking over the river valley.

[@BigHtrades]

Much of your story mimics my wife and I except we are a decade older. Sincerely, good for you. My wife and I were both self employed for most of our adult lives (rental property, me-CPA, her). In dealing on a personal basis with literally thousands of individuals and couples over 40+ years "lifestyle spending- carelessness" is the number one mistake amongst all income earning groups. My wife had a surgeon client making almost one million a year declare bankruptcy when his emergency room nurse wife stopped working to care for their new born child. New Mercedes always for both, etc., etc., etc.,. I love to hear stories like both of yours, what a stress reducer!!!!!!

[@bradj229]

AWESOME! Congratulations!🎉🍾

[@joeholiday706]

“When you look to buy something do you need to look at the price tag?” Yes, that’s how I got into this category, and if I stop looking at the price tag then I will probably fall back out of it.

[@TheFinalChapters]

Indeed, you don't accumulate wealth by being frivolous with your spending.

[@bbhoustontx]

yeah well said. We have over 1mil net worth and eat home and buy used late l model cars and compare price everything we buy. We have no cable only rabbit ears and are fine with that.

[@cali_love5977]

Yes!!! That’s the only point I didn’t agree with at all. I would say most upper middle class people don’t think like that

[@MarkMphonoman]

I no longer look at price tags. I know instinctively if I can afford it or if it is worth its price. Really, today the only big purchases are for ‘assets’ I believe will grow in value over time or at least not lose value. The smaller costing things in life are of no consequence. For example, I don’t look at the price of gas, I figure I have to buy it anyway. Like food. I just stick with the middle grade of gas and have been doing that for more years than I remember.

[@jayjayquest4958]

NET WORTH 2:34 Poverty Class = $6030 4:27 Lower Middle Class = $43,760 6:26 Middle Class = $104,700 7:47 Upper Middle Class = $201,800 9:19 Upper Class = $608,900

[@crappiehookking387]

Is this based on individual income? Or household income?

[@Hakasuma]

@@crappiehookking387 neither. It’s based off Assets - liabilities. And i believe it’s household

[@crappiehookking387]

@@Hakasuma Thanks man! That helps me understand better.

[@inclusion9212]

Nah I don't think so.

[@5thdimension625]

Th AJ you, we’re all set

[@hump1953]

Interesting video, I’m 69 single, never married, no kids… had a decent job… have net worth a little over 2 Million…with pension and good social security…feel so blessed…

[@ErinTalksMoney]

Congrats! 👏👏

[@katrinamillings3651]

It's funny I stumbled across this video. I was just telling a friend the other day most people are doing well to reach a net worth of zero. He looked at me like I was nuts until I explained that means no debt. No credit card balances or mortgage. I'm a janitor with a net worth of 7,000. That might be just a smidge more than poverty level, but I'm actually doing better than some of my friends who make a lot more, but have tons of debt. I'm free to grow my wealth. They can't even begin to do that until the debt is gone.

[@dc14522]

I couldn't agree more. In my late forties I had a middle class job and a net worth of about $60K in the hole. The stress... the debt collectors... it was horrible. But as soon as I committed to cutting my expenses to the minimum and attacking my debt one at a time it got better. I tracked everything on a spreadsheet and stuck to it. It took 5 years, but when I became debt free it was an incredible feeling. Once the debt was gone I took that same discipline to start accumulating wealth. Now, 15 years after eliminating my debt, I've retired (age 59) as a multi-millionaire, and I'm just a year from heading around the world in my sailboat. One smart/lucky move I made was investing a big chunk of my savings in Tesla, which paid off big. But even if I had played it safe I could have retired comfortably. But just to reiterate... debt is enemy number 1.

[@CarlKettler]

No mortgage means you add in the value of your home to the asset side of the balance sheet. Owning a home free and clear with no other debts puts net someone well into a positive net worth.

[@kingsleymoore2354]

Successful people don't become that way overnight. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life

[@paularuwa4127]

When I saw testimonies all over the place I thought it was all made up stories till I saw my next door neighbor sharing her testimony I was convinced and said let me try hima out. I don't regret the move I made because I invested my money with the right person

[@barnard8889]

Chris is not the kind of person that will tell you with just $500 you can made $45,000. He tells you all you need to know and how he can help you with the little you have

[@barnard8889]

Sometimes this videos don't really help much as they end up confusing you more. When I came across Darrell the confusion ended try

[@fredweller1086]

Net worth appx 1.2 million. Never earned more than $65k a year. It's called saving.

[@fredweller1086]

@Dirty Lettuce Less than half. No mortgages. Owned outright.

[@TM-tw1py]

Every High School student should be required to watch this video at least 1X each school year. Then, another 10 hours of class time should be devoted to research, discussion, and better understanding these concepts.

[@carja09]

yup ...

[@pbur8406]

Great Video ! I always got depressed because my income rarely went over 50k ......but my net worth of 650k gives me a more optimistic approach to retirement

[@southernfriedkiwi6340]

It's always important to understand that income doesn't always equal wealth. A friend of mine is a lawyer who makes over $140,000 a year, but he and his family live month to month. How you live and where you live is vastly more important than outright income.

[@chris_sc]

You've made it! Your income of 50k - after taxes, social security, and savings contributions probably left you with high thirties. 650k in assets @ 4% would come to 26k per year spendable income (plus some asset growth). Add a (smallish) 14k per year in social security, that brings you to 40k (before tax), that's probably 35k or such, but you also won't have less health insurance costs (3k per year?) with Medicaid. If you are not retiring tomorrow but a bit later, you'll likely be better of (financially) in retirement than during your working years. You accumulated assets worth 13x your annual income! Well done.

[@smartanajones4u]

That’s outstanding! Congratulations 🎉🍾🎈

[@dking1362]

@@chris_sc AND since the ACA is based upon income, not wealth, they may qualify for subsidized healthcare when they retire.

[@shattergraveknight3378]

Im getting there myself at 31 I build my house with my own hands on 5 acres. The 5 acres cost me 30k and is the only debt I have. The house is done a year later and the estimated value of the property has jumped to 150k. I only make 50k a year working two jobs so I was surprised to see I am not that broke.

[@DaveM-FFB]

Long ago I adopted a herd mentality approach to net worth. I examined the top 10% to determine all of the common characteristics, to see what I could replicate. Here's what most of them share, business ownership, investment real estate, stock or mutual fund investing, and higher than average income (which was a byproduct of the other 3). Intentionally accumulating those income producing assets propels net worth far more than a 35 year career employee can save. After 25 years, those assets began to provide more income than I could've ever earned as a career employee, in upper management.

[@JasonG123]

and 4) their parents were probably rich or had an above average net worth

[@DaveM-FFB]

@@JasonG123 "and 4) their parents were probably rich or had an above average net worth" Maybe or maybe not. My family was lower income. Only one parent graduated high school. I was a first gen college grad. After college, I got a job and I also tried several different side gigs, and one grew into a legit business, which ultimately replaced my day job. Total cost to start that business was $7,700. In my opinion, business ownership can be the quickest path to grow net worth.

[@gipnor]

@@JasonG123 Nope. kzbin.info/www/bejne/naa1eJufiaqfidE

[@JasonG123]

@@DaveM-FFB congrats, I am in the exact same boat as you were. First gen college grad, grew up single parent in bad part of town, working on side gigs now as I work my regular fulltime and hoping that something takes off. I agree that branching away from the status quo is the fastest way to break out of the cycle.

[@JasonG123]

@@gipnor sorry, his podcast is for entertainment purposes and yes, he's rich, but just because he's rich doesn't mean he's right or using correct data. Also, he has an agenda to make money off of you, so of course he's selling you what he wants you to believe. Real life is different

[@schnauzersareawesome7209]

Our feelings of security have increased as we've worked our way up, but my husband and I still retain many of the frugal habits we practiced during our aggressive saving years.

[@mommytradertube]

Great Video Erin! I look more at our Net Worth and I teach people here on KZbin to do the same! Knowing what you own and how much of it that you own is VERY important! It's the same with debt! Our Net Worth crossed $1 Million last August and it was because we had the money working in stocks, real estate and crypto. We started low income and through education, networking and hard work..have been able to make more and have that grow on the back end for us! Like you said..it's all about money management! Again..LOVE your videos Erin!! Keep the content coming sis! ❤️

[@ErinTalksMoney]

Congrats on passing $1M, that's awesome!!! 👏👏👏 Thanks for watching!!

[@growsinhouseherbiculturali1100]

Don’t check your stocks or crypto today!! 🤫

[@Steve-nb9kg]

Net worth is heavily dependent on age, so maybe a breakdown for age brackets would be useful. $100K is a lot for an 18 year old, but too little for a 60 yr old...

[@timnewman1172]

I agree, a big difference is if you have your home paid off or not...

[@timcoker1428]

How is it too little for a Sixty year old??? At 60 you shouldn't have a house payment or a car payment. I retired at 60 all my stuff paid for, with $160,000 in savings. Between Social Security and one of my retirement plans I have about $2,800 bucks a month coming in. Depends on how good you are with your money.

[@steveweixel6709]

@@timnewman1172 paying off your home doesn’t really affect your net…

[@timnewman1172]

@@steveweixel6709 , how does it not? It should be a definite decrease in the debt to asset ratio...

[@steveweixel6709]

@@timnewman1172 if you have a $1M house and still owe $100K, but you have $200K in the bank, then your net is $1.1M. If you take $100K from savings and pay off the house tomorrow, you still have a net of $1.1M, Net isn’t a ratio, it’s assets - liabilities. Shifting from one pile to another doesn’t affect the net.

[@edgarswoodworking1972]

Erin, I’m really impressed! It wasn’t long ago in one of your videos you were telling us that you had 100,000 views on all your videos and now just one has achieved that! Congratulations ! I watched your other video and wasn’t surprised to find myself in the middleclass as an income earner but was really surprised to find myself in the wealthy category in net worth. I don’t feel wealthy but I feel very fortunate. I’m near retirement and I can’t say I feel ready to retire . It is an uneasy feeling but I have to trust that as we go Into a more fixed income that all will work out. Thanks for what you are doing and I think the numbers are showing that many want to hear the message that you have.

[@Sharon-pb7so]

My husband and I are retired, our house and cars are paid off, the oldest car is 5 years old. We've saved, have a home that's probably bigger than we need, but it's paid off, so, who cares. Here's the thing, we can live on our SSI and put away 1k per month, we don't touch our savings. The 1k per month we put away pays our property taxes such are 4k-ish a year right now, what's left over goes to our savings account. Our utilities are paid from our SSI as are groceries and eating out (which we haven't done much because of the virus). Anyway we're doing MUCH better than I ever thought we'd be doing. Our monthly payments for our health insurance also comes out of the SSI. I almost forgot about that. We can do what we want. We've held up a trip to Italy and surrounding countries due to covid. That vacation fund keeps growing. I think having a mortgage free home is the key to anyone's retirement.

[@danforward3913]

Great video, Erin! Glad I found this channel. I always thought (based on...basically nothing) of the upper class as those people who don't HAVE to work to sustain their lifestyles. Kind of like a landed gentry (upper class) vs. merchant (middle class) idea. I was really interested to learn these actual guideposts! You've definitely got a new viewer.

[@ErinTalksMoney]

Thank Dan! Welcome to the channel! 😊

[@lastempire7302]

8:53 would have been true if we are in the 60s. I'm a "multimillionaire" and I still shop on store coupons and often beat myself to death whenever I for not getting a bargain. Just because I can afford it doesn't mean I want to pay for it. A million dollar is not something to write home about these day.

[@ErinTalksMoney]

I totally hear you! A million definitely isn't what it used to be! Of course it depends on where you live, number of people in your family, etc.

[@fav843]

If you're single, it's a lot of money. If it's to raise a family, it's not enough ):

[@marcsherman4862]

If you live in California or New York - you are close to needing food stamps at one million.

[@lastempire7302]

@@marcsherman4862 lol, so true. A millionaire in those places is barely richer than the guy who live under a bridge.

[@thomasreedy4751]

@@marcsherman4862 NYC and Cal let people with a Net-worth of 1 million go on food stamps???

[@troyyang3703]

It also depends on which geographical region in USA. Here in California, $600K net worth is at best middle class but could well be upper class, for say, in Alabama.

[@mikes96fs]

This makes me feel much better about my finances! I don’t bring home as much money as I would like. The last video you did regarding this topic with annual salary put me squarely in the middle class but my net worth puts me in the wealthy class. I never really looked at my net worth as putting me in a wealthy class. I was guessing I was doing better than average, maybe upper middle class.

[@ErinTalksMoney]

I'm glad to hear that Mike! Congrats on your financial success thus far and thanks for watching! 👏 😊

[@davidroush1224]

Erin - your comments regarding knowing how to handle money wisely as being more important than the amount of income one makes rings true in my observations of many people over 40 years of working. My wife and I loathed debt. We built our house with our own hands and finished it in our early 30s and never had a mortgage. That allowed a massive savings rate as most of our paychecks went into retirement savings and other investments over the next ~25 years. We were early versions of what are now called supersavers. It allowed us to retire at 54 /56 and worked out better then we ever imagined. We drove economy cars for a decade. We lived well and traveled some, just not some place exotic routinely. If we went to Europe, we'd find bargain trips in off season - for example we had a week in Italy for about $1000 total a few years ago. We go to Maui, but when there we catch the weekly ads and coupon shop and can keep the costs similar to when home, so it is mostly lodging and flights. We love to snorkel and have our own equipment so that is a free activity when there. Paradise on a beer budget, sunset looks the same ;) Several years ago I was joking with another retired supersaver friend and referred to him via the old adage that he was so "thrifty" that he probably had every dime he ever made. That got us thinking and we realized that in some ways it was possible to achieve. We started the "every dime club" where the goal is to have your net worth (not including the house) be at least as much as the total lifetime earnings reported in your individualized online Social Security account. Obviously you can't just save to get there, you need to have invested well and let compound interest do the heavy lifting. But we decided it was possible to achieve. My wife and I each crossed that mark and joined the club in our early 60s. We had good jobs, not even doctor money let alone anywhere near that of the 1%, but our lifestyle of living below our means eventually get our net worth there. Everything I read about compound interest back in my 20s has been true and it is an amazing thing that I wish more young people would learn about and take advantage of. We trained out kids, and I try to share it with young people when the chance arises. It can set you free and get you into that "every dime club."

[@shawnpatton3795]

You’re welcome. Thank you for the time and other resources for making these videos that provide positive impact to us, your viewers. We appreciate your hard work.

[@RJMWJ]

You're very welcome, Erin and THANK YOU for all of the amazing, down-to-Earth content. I've been telling lots of people about your channel and will continue to do so! Good stuff!

[@ErinTalksMoney]

You're the best!!! 😊 Thanks so much!!!!

[@oatmealtruck7811]

My husband and I are 33 and 35. I’m a couple weeks from delivering our 2nd baby. I’m a SAHM and he’s an NCO in the military. Our net worth (based on my quick calculations) is right around $105,000. We’re not wealthy, but we have ZERO debt. We stick to a monthly budget, make healthy retirement contributions and other investment contributions. Despite the craziness of the financial market, I feel secure with our future because we plan ahead and make the best decisions we can.

[@oscarrlee18]

You and your husband are the backbone of this nation

[@oatmealtruck7811]

@@oscarrlee18 that’s very kind, thank you

[@dreel37]

Always smart to plan ahead. I'm glad there are still people who think like this. Get debt out of the way because no matter how good your networth is it'll always get dragged down by debt.

[@oliverheaviside2539]

@@dreel37 the best investment is paid for real estate.

[@dreel37]

@@oliverheaviside2539 Definitely. That's what I plan on investing on once my credit is in a good position and once house prices drop. What I'd recommend would be for you to get a loan for a house, rent it, let the house pay itself, and once you pay it off you can either keep renting it, or sell it by payments with interest which will make the buyer pay more money than the house is worth by the end of the contract deadline.

[@michiganabigail]

I've been binging every video you've released and I love them all! I don't make much money from my regular day job, but I have three jobs and a roommate, so I'm doing okay. I would define the lower, middler, and upper classes by the amount you can live comfortably. Lower class to me is defined as having so many bills or so little income, you can't live a lifestyle with anything but the most basic necessities. Middle class à la Abby would be a comfortable life with enough money to go out to eat every once in a while and to save up for (my personal large expenses that I'm saving for) a nice camera and a bathroom remodel. Upper class is like middle class kind of, just more eating out and less time needed to save up for large expenses. I am Ramsey-esque in my opinion on debt: don't be in it! That sets you back to a lower class life!

[@szolotov3708]

I really like your type of content and I watched every single one of your videos. I found your channel almost 6 month ago, and you inspired me to create mine as well! I'm really happy to see how your consistent and hard work finally got attention to your channel. Wish your channel all the best! 👍

[@robertschneller8795]

Thanks, Erin. I am very surprised of the net worth in the upper two categories. I know it’s extremely hard for those with low incomes to save, and as you said in the video some lower income earners save a lot. I would have expected those with much more disposable income would save more. I guess it shows how varied values are among people.

[@ErinTalksMoney]

Hey Robert! I'm always surprised how low the figures are at the upper end so these lists! Sometimes it. seems like wealth is very prominent - but then you see these numbers and it just doesn't seem to add up.

[@JerryNordstrom]

I think the stats are very deceiving as in general higher net worth individuals live in higher cost of living locations. You may earn $250k a year in So Cal, but your cost of living is triple of that in Nashville TN. In addition your taxation rate as well as breaks on tuition assistance and so on are limited. Thus, your ability to save each year is limited. Since 2020 there has been a massive rebalancing of income / location due to Covid and legitimate remote careers. People finally figured out... you can do a lot of jobs run a number of businesses remotely.

[@debbied9997]

Thank you and other KZbinrs who are trying to turn the tide on American's as horrible savers. My husband and I are 56 and our net worth is north of 3M and we supported our daughter through college and helped her buy her first home. All by saving when we first started working in the '20s, nothing fancy, no new cars, a nice house but did all repairs ourselves, no extra stuff and we live a great life. In our late 20s and early 30s, many of our friends would buy expensive stuff (boats, Sea-doos, label brand items) but we did not. We splurge on memories, Europe, Grand Cayman, Australia, Cruises, we travel, that's our fun. Who cares if my shoes do not name brand, I have the financial freedom to do what I want for the next 30 years debt-free.

[@Tubularicious]

Nice Job, Great Positive Energy and Motivated passion in your voice! Brief, Concise, and Clarity in delivery! Keep e'm coming!

[@millennialeconomics9145]

Just recently found your channel. Loving your content! Particularly the content where you compare different brackets/demographics. Keep up the good work!

[@ErinTalksMoney]

Thanks so much! Welcome to the channel 😊

[@theSSHITT]

Love this video! I FIRED at 38, my husband loves his work, so he keeps working. I got so excited when you mentioned FIRE. We stared seriously saving and investing about 10 years ago. We had rather unimpressive salaries (between $18K and $90K) over our 15-year work history and that was enough to allow both of us to FIRE before the age of 40, if we wanted to. Granted, we don't have kids, so that helps. Your breakdown of the income brackets reminded me of what my research method's professor said during the 1st year of my PhD program when he commented that everyone answers on surveys that they are middle class. Your breakdown also made me realize we are at the top of the wealthy class. And there is nothing special about us. You are exactly right. Barring major discrimination or disability related issues, almost anyone can join the middle class.

[@angelsantana3355]

As a single 24 yr old I can agree that financial habits are the biggest factor for how fast one can accumulate wealth. I myself am currently at a 80k net worth after working for two years and paying off my student loans. My income is not that high 70-80k but I have been saving consistently from day 1. Some of my older married relatives don’t have a net worth/savings greater than mine and that is because they like buying cars (leasing one every few years), going on vacations and just generally spending more. I heard someone call this lifestyle inflation and honestly I believe this is what holds most Americans back.

[@Thatguyujustmet]

I'm with ya on that Angel! I am also a single 24 yr old and I have a $140k net worth. I have 5 years of working with an avg income over those years probably around $40k-$45k. I wouldn't say I was saving from day one, but I did pay down my debt as fast as I could and I do not spend much. I didn't do anything special, and I even set myself back a solid $15k by going to college. The only lucky opportunity I've had is family rent between $300-360 a month throughout the years. Good habits and an "I care" attitude make all of the difference. Building wealth is easy and fun.

[@Resurrektt]

Nice! I have been working one year and have a net worth of around 40k, trying to save up for a house

[@bruceaux174]

I just stumbled on your channel and appreciate the sound information you provide. Now in retirement, one area most financial advisors don’t talk about is health. Maintaining health throughout life can be another way to accumulate wealth and save. Perhaps a video that discusses health “net worth”.

[@sealisa1398]

Good health…the greatest wealth of all.

[@bill7481]

Your 100k views are well deserved, Erin! Congratulations! It’s no surprise to me, though, as you talk about money in a non-judgmental manner. Keep up the great work!

[@ErinTalksMoney]

Thanks Bill!! 😊

[@jhomeboy2942]

Love the video! Since this can be local to where you live, by age, married, have kids, whatever situation you are in. I think you should do a series of this by states or region of the United States.

[@ErinTalksMoney]

It is so relative to so many different factors!!

[@samkitty5894]

Anyone can earn a dollar, not everyone can save it. This is the difference between rich and poor. I came to the USA (legally) with a plan, many years ago with nothing but a suit case. I got educated while working multiple jobs which got better as my education made me more marketable. Today I would say I fit in top 10%. Decide what you want to do for living, as doing something you hate regardless of pay will make you unhappy. Save your money and don't waste it keeping up with Jones'. They live off of credit card... Lastly, life should not be all about the money. Some of the richest people are very miserable. True wealth is deep inside you, not at the bank. But the money does help...no doubt.

[@ronmexico6241]

The earlier we start saving, the wealthier we become. Compound interest is real, but patience is necessary. A simple 401k can do wonders...

[@ismapsan]

Thanks for sharing this content, Erin! Really helpful even for who are outside US to have a better comparison in economic terms. Kind regards!

[@ErinTalksMoney]

I'm so glad!

[@scottbowman6663]

Hi Erin....very well done. I've been working in Finance for 28 years and I know most of what you are talking about. However, I rarely see anyone who can present it as well as you. You keep it interesting and it is easily understood be people with less knowledge. Thanks for all you do.

[@ErinTalksMoney]

Wow! 🤯 Thank you so much! 🙏

[@slslbbn4096]

In the past racists in Europe to Naz i Germany organized progroms to attack those that lent them money in order to avoid paying them (typically against the Je ws) Today we see the same racist mentality happening again but this time, the narrative of dehumanization is directed against the Chinese It is shameful to think that we humans are no better than 80 years ago despite swearing to never repeat the mistakes of the Na zis

[@matthewholliman1399]

Really interesting content! Maybe you could do a video about what size nest egg you need for different levels of retirement income. Rather than comparing ourselves to each other, we can compare ourselves to who we want to be.

[@ErinTalksMoney]

Love that!

[@matthewholliman1399]

@@ErinTalksMoney how many likes do you need to make this video?

[@rdgale2000]

I'm glad the KZbin algorithm pointed me you your channel! I have subscribed and will spent the next few minutes (hours) watching more of your videos. You have a very good presentation that makes it enjoyable to watch. I wish you nothing but the best for you.

[@ErinTalksMoney]

Thanks Rick! Welcome to the channel! 😊

[@petepifer8635]

Thanks for the content. Perhaps you’re including equity in a primary home for the net worth? You’re right - I believe the golden rule is to simply spend less than you make. Becoming debt free is wonderful. Keep up the great work.

[@user-sl3zv8cq9k]

My neighbor across the street would have at least 40 times a year of all sorts of services to their home, such as tree pruning, plumbing, drywall repair, electric, pest control, food delivery, and dry cleaning and delivery etc. I have been wondering how much he spends on those kind of things a year because I do all those work myself.

[@thisorthat7626]

@Homo Sapiens. Truth. I do a lot of repairs around the house myself and I know it has saved me lots of money. Most of it you can learn from the internet these days. The lady across the street, who is younger than me, is paying a fortune for people to do work for her. And then she complains that she is upside down on her mortgage. Stop having restaurant food delivered and do some yard work yourself. LOL. It's not difficult.

[@kimmer6]

I'm retired. I owned and operated an apartment building for many years, saved a ton of money doing some jobs myself. I recently found my log book and counted 47 hot water tanks that I replaced by myself in that building over the years. I always had 3-4 new ones on hand in the maintenance shop. Many of them started leaking on Sunday for some reason. Try getting a plumber on Sunday. My goal was to have hot water tanks replaced within 8 hours of receiving a call. I put drain pans under them all along with earthquake straps. The pans drained though pvc tubing outside the building near the air intake grill. Sometimes when I was walking by and saw water dripping, I knew what was in store for me in the next day or two. I sold that building a few years ago and never looked back. I'm almost 70. I just changed my own garbage disposer 3 days ago, boom boom, over and done, no hassles, no cost. I had 8 brand new Badger 5's in boxes that I kept after selling the other building. That batch should last a lifetime.

[@kirklandphil]

Love this stuff Erin, You really need to be a financial adviser, the simple way you explain things is far better than the adviser I have. But I'm sure you are doing what you want. Keep rocking it girl.

[@ErinTalksMoney]

Hey Philip! Thanks!! I always think the best way to explain things is in the simplest manner. I really hate when explanations are complex and convoluted - that doesn't help anyone. Keep it simple!!

[@davidknaebe5123]

Erin, Great video as always. Good information for those who are planning their retirement. You are so fun to watch!! Your personality is infectious. Best and most fun investment video series on You Tube. Keep up the great work.

[@ErinTalksMoney]

Thank you so much David! 😊

[@thomaswolff3261]

New subscriber! Your videos are great and the heart-felt thank you at the end of this video was wonderful. Thank you and good job achieving 100k views!

[@ErinTalksMoney]

Thanks Thomas!! Welcome to the channel! 😊

[@piratesplay940]

Erin, Another great pod cast. I would be interested in a view of the average net liabilities both by age and among the 5 classes of American families. For me my net-worth number is influenced a great deal because I fully own my house…but that value is not really liquid. So my living style is more effected by income like pensions, social security, and investment income. Owning a home that has no mortgage and having no other debt upon retiring is the biggest factor for me to a very comfortable retirement.

[@l.a.rivasesq.8841]

I don’t bother including the value of my house in my net worth because I don’t plan to sell or encumber it. Adding the equity of my unencumbered house to my net worth would likely warp my assessment of my net worth.

[@ErinTalksMoney]

Interesting - I'm not sure what data is available, I'll do.some digging. I agree with you - I love the idea of having a paid of home in retirement!

[@DavidRamseyIII]

There is some data about high net worth individuals which is apparently 1 million outside of home equity and retirement. The home value should definitely be included in your net worth. It’s “return” is the rent you don’t have to pay

[@mattcolver1]

I was wondering the same thing. If home equity is part of net worth a lot of people who live modestly on median incomes are considered part of the wealthy class. With the crazy appreciation of home values the last couple years it isn't all that hard for someone earning under $100K a year to have over $600K in home equity. My house went up over $300K in value just last year. As you state it's not very liquid unless you borrow against it or sell. The big issue is property taxes which are based on appraisals. People are being taxed on unrealized capital gains. We're retired and seriously thinking of selling our home to get out from under the brutal property taxes we've had the last couple of years.

[@MrMleewilson]

@@TimRileyGPlus A home's not really an asset unless it makes money for you. If you live in the house, then it's not really making you money. It has annual maintenance costs, utility costs, property taxes, and insurance costs. Those costs are real and subtract from your net worth every year, unlike home appreciation, which is only a number on a piece of paper that only becomes real after you sell the house or do a reverse mortgage. Most people think home ownership is great, but people really need to look at this with both eyes open. If you financed your home, you probably paid at least twice what it cost to the mortgage company. You've had to pay insurance in case the home gets damaged or if someone is inured on your property. You've had to make major repairs like replacing the roof, plumbing, electrical, evac and structural problems. You have to pay for electricity, water, heating, and waste disposal. And then there's property taxes, which is a story all to itself. When you add all that up over 30 yrs, is the home really something that adds to your net worth? This is why I don't include it in my net worth calculations.

[@gregouska9914]

Hi Erin, Great content and presentation! Now that you have done one on income and one on net worth, the next step is to combine the two. I saw a chart a few years ago that someone with income of $100,000 and investable assets over $1,000,000 is in the top 2%. Once we get into the middle and upper classes, investable assets becomes a more informative metric, as it sets apart your primary residence which, while a part of your net worth, does not contribute income. Just my 2 cents. Appreciate your work!

[@davidreidenberg9941]

Depends on age and stage of life. Married couple with 2 million In investable assets with, no liabilities and kids on their own certainly would be considered upper middle class, but may still not be free of financial anxieties. It’s really a state of mind. Upper class to me means that you could loose 75% of your assets without affecting your life style.

[@kevin7151]

Erin, excellent video. Many folks focus on their income and assets, and neglect to fully evaluate their liabilities. The management of these is the ultimate determinant of one's financial outcome in life. Further, people need to consider a long-term financial horizon, but we find ourselves in a society that focuses on almost everything in the near term. Further, people need to focus less on how they want to present themselves to the world (at least from a financial perspective) and focus more on their financial health and well-being. More than ever, financial education and planning are critical given that retirement planning has been put on the individual's shoulders where most are ill equipped to handle that.

[@tcniel]

Would you be surprised to hear that my two adult children (both teachers) and I (this morning) had an in depth discussion on this exact topic, covered the same points, and came to the same conclusions, although not as clearly as you did, thank you for this effort on you tube.

[@TomVillars]

please do a breakdown on net worth between the upper 10%, 1% and 0.1%

[@ErinTalksMoney]

I'll do some research 🤓

[@ToddTinley]

@@kimpritchard4322 Because most Americans are that broke/poor.

[@ericsilva9323]

Cool 😎 I'm in the upper class with low income but 620,000 networth

[@ErinTalksMoney]

Nice job Eric!! 👏👏

[@AdrienAmborsio]

Hi Erin, I loved your video, you seem so humble and so kind and I really appreciated the knowledge you shared. Have a great day!

[@ErinTalksMoney]

Thanks Adrien!!

[@coreyh55]

Dang. This made me feel better about life. I’m 37 and upper middle class and didn’t know it. What a trip

[@mr220v]

Don't forget the regional impact on class. 100k in New York and you're almost impoverished. 100k in rural areas, or many small to medium sized towns, and you're upper middle class.

[@bobzelley5100]

200k in bergen County is 100k Bonners ferry Idaho. In NJ After federal , state, property , ss, open space tax , etc net is 48 cent on the dollar . No wonder so many have moved to Pennsylvania, Florida etc.

[@alabbott9711]

Erin is fun to watch simply because she does the research. I have my daughters watch her channel when a lesson needs to driven home. That said, at 8:56 she says that the upper middle class probably does not look at a price tag when purchasing something. As a retired blue collar household with a net worth well north of 2M I always look at the price tag. in our case we could not have a comfortable retirement without paying attention to where the money goes. Although the hardest thing I needed to learn when I retired early was learn to spend the money we saved.

[@berniekirk1397]

In order to accumulate any kind of net worth you need to be conservative and price conscious for your working life. The fact that you retire and have a certain level of security, does not change your financial habits of 40 years. I thought the same thing we she mentioned price tags.

[@MuzixMaker]

Looking at price tags is what made you wealthy.

[@biovmr]

This topic is actually pretty deep when you get into it. What difference does it make what someone’s “class” is? As you mentioned, decisions about how much to spend and how much thought must go into those decisions tell you the most about someone’s financial position. If I have a net worth of $1 million today at age 55 but it is only accessible if I sell properties that I live in or break into a retirement account and my annual income is modest, I am not upper class from a practical standpoint. To me upper middle class means you can stop working for a year or two, still be on track to retirement. Poverty and lower class on the other hand to me mean that you buy only what you need to get by physically and you hope that you never ever need to go to the doctor.

[@markwilkins1544]

I loved this video! 😊 Thank you for making it. I love knowing where I stand with my net worth compared to the median. Your not only gorgeous but very financially intelligent and your videos are so informative. Thank you again for taking the time to make these videos. I’m looking forward to your next one. You are awesome Erin!

[@ErinTalksMoney]

Thanks Mark!! 😊 These types of videos are fun to make, I'm glad you enjoy them!

[@staciecampbell5078]

My definition of rich has always been: the ability to maintain a reasonable standard of living without working. However from there, there are three kinds of rich, rich (lower case r). Can maintain standard of living but still need to maintain a budget. Rich (upper case R). Can maintain without worrying about a budget but doesn’t live extravagantly. RICH (all caps). The sky is the limit with no thought about living luxuriously.

[@ErinTalksMoney]

I like that!

[@enthused7591]

I like videos like this with a breakdown of how your net worth can affect your decision-making thought process based on the cost of whatever it is you're buying. I don't think we take into account how subjective that process can be based on an individual's goals and how they see their current financial situation. I know people who've hit that roughly 100k net worth threshold, and they're convinced they can live pretty much like millionaires because to them, that easily qualifies them for an easy to pay, low-interest monthly payment on that new car, AND new motorcycle, AND new boat, while having a little $10k-$20k safety blanket in the bank. They give off the illusion that they have more like a $500k net worth because they're constantly seen with brand new vehicles and higher end stuff in general. For me, I'm somewhere just above that upper middle class number, and because my goals are to own a couple of larger properties by the beach and in the mountains with zero debt, even until I hit a $2-3 million dollar networth, I'll be driving old reliable $7500 Silverados and paying cash for any single thing I ever want other than interim-level properties. It's all about priorities, goals, and subjective financial viewpoints.

[@JK20239]

Will those properties be rentals? Otherwise buying PROPERTY is debt( maintenance, property taxes). Mortgage free is not debt free when you're paying taxes to keep the property

[@enthused7591]

@@JK20239 Great point, I'm sure I'll end up doing the occasional Air BnB rental on them which will offset the property taxes and maintenance, but on the other hand, I don't really feel a desire to work past about a 7 or 8 million dollar net worth, and as of now, those two properties are kind of my aspirational peak (with a few other smaller assets I have in mind as well). I just feel like I'd rather get to about 48-50 years old and then cut back my commitment to working by about 60-75%. It's weird how we all live life as if we'll see 85 or 90 years old, but most people pass in their 60s and 70s. I won't work myself to death personally, and even at age 33, I can feel experiences becoming more important than wealth to me. Hope you have a great one.

[@ErinTalksMoney]

Thank you for sharing this! good luck on your financial goals, you got this!! 👏👏

[@gratefulRed69]

1000%

[@carsonroberts5749]

Great video! Thanks for putting the time in to make these!

[@Intotheunknown89]

Love the video! You delivered the content perfectly. Next time could you add the top 10, 5, and 1 percent? I believe your audience will be intrigued by the exponential data. Again, awesome job!

[@thehospitalguy1657]

Great video. Loved your thoughts Erin. I am in a high cost of living area on the coast in Ventura County California. Your thoughts on making over $100,000 and not having any money saved are spot on. My wife and I have a household income of close to $200,000 and yet after taxes and living expenses their isn't much left. We do fund our 403B accounts at work and those have grown significantly over the years. We own our home as well, although I am of the mindset that we need to live somewhere so I don't include our home as part of our net worth. Some may disagree with that. I see a home as something that cost me money to live in and not as an asset. If I were to sell the home then it would become an asset although I would need to then purchase another home. That being said I am told that we have close to $500,000 in equity on our 60 year old home. LOL

[@selrahc2061]

Used to live in that same City, it has always been high relative to income. If you have family commitments stay. Otherwise you know your answer. Hard to leave those sunsets.

[@robertshaw7289]

+

[@thehospitalguy1657]

@@selrahc2061Sorry for the late reply. I seem to neglect responding in a timely manner. Yes family commitments do keep us in place. Daughter is still in high school and two other kids in college locally. At this point staying is the priority for us.

[@FionaMacDonald]

Another great video! I find even though I am more than comfortable now, I still check prices - even at the supermarket. I don’t like being ripped off - even if it wouldn’t really make a difference to my checking account 😜. Happy to buy the organic free range eggs for the little chickies being better treated. But I will buy the big bag of carrots and chop/freeze what I don’t need right away because it is better value 🤷‍♀️ Watch the Pennie’s and keep the dollars growing 😊

[@ErinTalksMoney]

So true! 😊 Savers never want to waste a dollar - I'm right there with you Fiona!

[@howellwong11]

Old habits die hard. I'm still frugal, but don't have to be.

[@ashleynicolebrugger]

I feel the same @Fiona MacDonald. I support the Happy Eggs brand but want the bulk carrots. I wear clothes until they are no longer good and I enjoy finding second hand clothes with ample life left in them. I tend to wear shoes until the tread is worn. I splurge on quality when I want to but refrain from spending on certain things. Saving money provides choice and I really enjoy having choices.

[@litning123]

I looked at several definitions of “middle class” a few years ago. The one which seemed most sensible and easiest to understand was written by two men from the World Bank: if you can buy a moderately priced new car without a loan, you’re in the middle class. Edit: I just read the comment from Sam Iamdj. That reminded me of sth I’ve learned while earning poverty wages the past few years: financial wealth may be measured according to your (Erin) formula, but real wealth is measured in social connections. Who have you affected, and how? Who, if anyone, will really miss you when you’re gone? Who would help you if you suffered some sudden, unexpected disaster? It’s worth noting that farmers may have low accumulated financial wealth, but score highly in happiness surveys due to their social connections.

[@cleanasdirt6832]

Wife and I have a net worth of $1.6 million. No mortgage (house), no credit debt, both vehicles paid cash. Truck is 6 months old, our SUV is 2 yrs old. We don’t see ourselves in a class. Both educated and well paying jobs. No keeping up with Mr and Mrs Jones. Solid retirement plan. Enjoyed the video.👍

[@bkinouye]

Even though I have a high net worth, I am still extremely frugal. Old habits die hard.

[@elee14]

Erin, thank you for another informative video and for achieving over 100K views on the last video! You are correct in that most Americans are terrible savers and you are sugar coating it a little bit. If you can’t reach at least a million dollar net worth by retirement, something in your life circumstances, went terribly wrong or your habits were terribly poor throughout your working career.

[@ErinTalksMoney]

Very true! 💯 💯

[@tonycrosthwait1142]

Another great and informative video Erin. Thank you again for helping us working people and giving hope to all that are trying. You are a blessing.

[@alanbirkner1958]

My husband and I never made much money. I read everything I could find on frugality. Two kids went to private colleges, one went to a community college. Find friends with similar interests and values. Tina, Al's wife

[@dennishubbs1869]

I was taught by my high school Finance Teacher to live below your means and to save at least 10% of everything you earn.

[@donm2255]

That is solid advice. I would add the sooner you start saving, the sooner you can retire. The small amounts of money I dumped into retirement funds in my twenties are now a lot of money in my fifties.

[@RiverDogRun]

There are really two key strategies in accumulating wealth: minimize debt, and invest early. I paid off my student loans in one year, with $30k salary as a pediatric resident. This allowed me to pay off my mortgage in five years instead of 30. When I bought my second house, it only took me one year to pay off the mortgage. I bought stocks (Intel and Microsoft) with my very first paycheck. By age 45, I became a multimillionaire. One can never become wealthy by being frugal. One will never become poor by being generous.

[@samsongxin]

30k or 300k salary?

[@davemsh]

@@samsongxin A resident, so 30k is correct but on the low end (maybe first year resident)

[@scoth2455]

Great video! It is interesting according to your video based on income my household is lower class, according to this one we are middle middle class. Last year we paid off our mortgage and own our cars outright. So it is all net worth!

[@roderick.t]

Awesome video! 🙌 At 53, my wife and I have a current net worth of $1.2M. According to your scale, we’re in the top 20%. Believe me Erin, we live close to the Bay Area, and we certainly don’t feel wealthy.

[@Michael-jc8nq]

This video really helps to calm the nerves. I started in teaching so we don’t contribute to SS but a pension; however, at the age of 40 I left the public sector and joined the private world. Now I’m finally putting in to SS and 401k. I originally felt so behind the 8 ball since our focus was being debt free, but currently our household has a net worth of $150k. We can definitely reach more than $600k net worth by the time we retire in 25 years.

[@ErinTalksMoney]

Pensions are amazing, so if you have one, consider yourself very fortunate! 😊 Good luck on your savings goals!! You got this!! 👏

[@davidl.2891]

@@ErinTalksMoney No one really factors in pensions as a part of net worth. I think how could it not be? Just looking at it as a simple annuity mine would be worth approximately 1.3M in order to pay out my yearly benefit. Yes pensions are wonderful. What are your thoughts on pensions/net worth? My wife and I live beneath our means, have no debt, save regularly and invest. I'm 59 and retired less than 4 years ago she(58) hasn't really worked in 30 years. Our net worth is 1.6M not including that above mentioned pension. Do I feel wealthy? No, I do feel comfortable.

[@jarek1980jan]

Great content and really nice haircut :) I've enjoyed the video, thank you.

[@ErinTalksMoney]

Hey JJ! Thanks! Fun fact - I had to curl my hair because I did a terrible job of cutting it and was uneven 😂 (I did it really quick one morning) The curls made it so you can't see the uneven-ness. I evened it out on Sunday so I can wear it straight again! 😊

[@adrianhoverter7198]

10 years ago I was under 20k net worth. Today I'm squeaking into the upper middle class. Its all priorities, habits, small changes sustained over time. Give me another 6-8 years i could very well be in the wealthy category. This blows my mind. My advice is to write your goals down twice a year. It has a profound effect written down. Great video. 🙂

[@ErinTalksMoney]

Congrats 👏👏 I love that tip!

[@CraigNAnderson]

Those are the keys to success! Slow, purposeful, aware. Simple steps to grow your life.

[@Oprizzle1]

Over 1M @34, thx TSLA :) I see myself in the middle class. Not rich! Might be my mindset that has changed. Don’t over extend yourself!!!!!

[@Oprizzle1]

BTW 1M is not that much money…..

[@AnupamVivekOSU]

congrats on the achieving the 100k views! Well deserved, Erin!.

[@ErinTalksMoney]

Thank you so much Anupam!! 😊

[@stevethomas760]

I've married two times. The in laws couldn't have been any different. First one owned a small town gas station and invested in real estate & stock market and passed in the house he built. Other was a PHD Phycologist lived in a really nice home and appearances matter. I always thought it was interesting that when the first marriage ended he was worth around 5M, more than twice the second in laws. At the second marriage a friend told me "blue bloods and blue collars".

[@SSY86374]

Been dollar averaging into Vanguard mutual funds for 20 yrs. 45 yrs old household with a net worth of $5mm including retirement savings. Took 10 yrs to reach 1st million $, then another 5 yrs to 2nd million $, then 3 more yrs to 3rd million $. Once u build up a large base, then it will grow exponentially... need good habit, consistency and determination...

[@greg_216]

As Britney said, "You want a Bugatti? You want a Maserati? You better work, bitch". But if you want money in the bank, drive a used Honda. Most people who have money are simply disciplined about not spending their money.

[@samiamdj8603]

I've always thought of my net worth as "comfortable". Based on your metrics I'm wealthy. But I don't live like I'm wealthy, because I don't feel wealthy. But wealth is relative. My father died when I was 5 and we struggled financially. I started working when I was 12. I did not go to college, just worked and was able to retire at 52. I reuse plastic bags. I will cut the toothpaste tube open to use every last bit. Anything that comes in the mail with a blank side becomes note paper. I don't spend much on cloths, but my hiking boots cost $400. I will only stay at nice hotels due to a traumatic experience I had in my working years. You wouldn't look at me and think that guy is loaded. Money doesn't define who I am nor make me a better person. Best to all in reaching your goals. Most important is that I would give it all away to bring my daughter back. Kids are what makes you rich.

[@gigi9467]

Yea this is incorrect, it should Measured in income not net worth.

[@desiswag907]

My heartfelt condolences to you

[@howellwong11]

My net worth is between 1 and 2 million and I estimate that I am in the top 8%. Don't ask me how I came to this conclusion. I'm just a good observer and a good saver.

[@ErinTalksMoney]

Sounds like a good estimate to me, congrats on the hard work saving and investing!! 👏👏

[@kerrynight3271]

That's a mighty big range for your estimated net worth. A bit like saying your net worth is between zero and one million. Having a million puts you in the top 10%. Good job.

[@howellwong11]

@@kerrynight3271 That's because I don't know if I should include the appreciation of my house, which is $500,000. It is only on paper so I didn't want to include it in my net worth, then again, I could have. The same for my stocks, but I did fudge a little by including half of the paper profit in my net worth.

[@kerrynight3271]

@@howellwong11 Sounds like you're doing great. I'm proud of both of us.

[@timvincent2069]

Wow Erin. 40 percent of people making over 100K and living check to check! I don’t feel so bad now. Anyways congrats on the 100K views on that recent video! You deserve it. You are sweet, humble, and a natural for this!

[@ErinTalksMoney]

Thanks so much Tim!! I found that stat surprising as well!

[@jltsoyowdycjltsoyowdyc1076]

Hey Erin, WTG! 100K views You’re on your way. And, love the new hairdo. You need no advice, but if you want some, it might be time to buy some of the anti-echo sound panels and a super duper microphone, like the pros. I think some of this stuff is available without breaking the bank because let’s face it, that would kind of defeat the purpose. Again though… congrats!!

[@redman2751]

My mom passed on Jan 11th due to cancer at a pretty young age of 57. She was always a saver and investor but most of her life was in the lower income range due to having me at a young age. When she passed I realized her investments and savings instantly put me in the upper 20% of wealth that you mentioned. It’s interesting since I never new this about her. I think her highest pay was $16 an hour. So to have that much wealth at age 57 shows exactly what you mention in this video that you don’t have to be wealthy to build wealth. Personally I’ve always worked on building higher pay checks rather then saving but I have realized I need to do both. Also I have to say this is the first video I have seen of yours and something about you is very kind and smooth to listen to. Take care and keep it up.

[@rabidfollower]

There is a thing called "net worth poverty." If you are "net worth poor," that means your net worth is 1/4th (~$4k) of the income poverty line (~$13k for singles). A person who is "net worth poor" may not be considered "poor" in income. As your video says, a $100k income could still mean you live paycheck to paycheck (and/or have unpaid car loan, student loan, home, etc.) I've heard of some studies that showed that net worth poverty had a greater impact on a child's well-being than income poverty. I've been trying to find a copy of such a study but haven't found it.

[@ErinTalksMoney]

Interesting! I've been doing some research on beliefs on finances are imprinted in children at very young ages....future video... 😊

[@d_willLife]

I am almost upper class at 37, thanks to a mix of inheritance, investments, and saving instead of taking vacations or buying the latest toy. Try to get a foot in the door and then let the money work for you. Even if you get lucky and inherit something, you will still need to make smart decisions.

[@fractalshift]

Good content. I retired 2 years ago and was able to accumulate enough to retire in 12 years working at a middle level job. Before that I had my own construction company though I closed that out in 2007 with basically zero, no debts but no assets either! So i had to do some real saving for a decade. I was able to save about 25% of income, get an employer match and was accumulating into a rising market, so there was a little luck on my side. Because I had been self employed I didn't have a large accumulation in social security. Its work but it is doable to go from nothing to retirement in 12-15 years! And compared to the FIRE folks that's slow!

[@larrykramer2761]

I am very close to having a $1M net worth, but living in CA I certainly don't feel "rich". Most of my net worth is tied up in my house. I bought my house 6 years ago and it has shot up about 500k in this hot real estate market.

[@Luckyboyee777]

Sell your home and move to a low cost area with no state taxes to buy two homes in cash. Rent one out for income.

[@JK20239]

And your property taxes shot up as well. Toss the home and cut the tax bill

[@ErinTalksMoney]

I feel you! 1M doesn't feel like wealth in many areas of the country. Congrats on your real estate win!! 👏

[@toddhallam9598]

Interesting. I have a net worth of over 700k. I don't feel wealthy. Still working my tail off! 4 more years...

[@ErinTalksMoney]

Good luck on your goals!!! 👏

[@joannat1898]

Same.

[@DaveM-FFB]

I've found that if you focus on increasing net worth, your income from all sources will also increase as a byproduct.

[@tonyflaminio2719]

10,000!!! Subscribers!!! Congrats Erin! Your videos make great points and you always provide a lot of perspective. You often say “Finance is Personal” which is so true, one size does not fit all. It was only a matter of time that You Tubers would see your consistent work and want to be part of your channel. PS, 153,000 views of your video last week is a testament to all of the hours you invest in each video. Congrats again ETM TfT

[@ErinTalksMoney]

Thanks Tony!! 😊 I snapped a screen shot today as it hit 10,000! 😭🥰

[@MrMleewilson]

Another interesting fact is that most of the people who retire with a net worth of around $250,000 have most of it in the equity in their home. If you took away the home equity, these folks would have a net worth of around $45,000. While it's great to own your home, unless you plan to sell it or do a reverse mortgage, you need to have money to live on when you're no longer working.

[@jimroscovius]

And many people in higher age brackets sell their home and live in an apartment. That's what my parents did. Now, they are renting a duplex and have lots of money to do what they want.

[@mariakaufer3274]

This was great. Thank you, Erin! I agree that net worth is a better gauge than income when categorizing wealth. One comment: I think that cost of living is a factor that can move people from one quintile up or down to the next quintile.

[@DLTJR1959]

We are nearing retirement in 11 months. According to the data we are wealthy by a good amount. I don't consider myself wealthy, just blessed. Thank you for your videos. Subscribed.

[@OakHillSoulman]

First time here. Really good video, with your positive outlook and encouragement. My question is whether you are including home equity in these categories; sometimes this is not included in defining net worth, I guess because it’s not liquid. From your description it sounded like it is not included since you emphasize saving. Just curious. Again, thanks for good video.

[@davidwilliams-wg9xo]

Excellent content Erin, I'm 68 years old and became a millionaire by the time I was 40 years old, got married and had two children grew the net worth to 3 million, a retirement / 60 years of age gave 1/2 of it to the ex-wife. And have been able to live off of the capital gains for the last 8 years. So for the last eight years I've been traveling internationally and not working and living off of my capital gains and my net worth has stayed the same about 1.5 million. I have a question and it's about the complainers and whiners in America that believe that capitalism has failed and Americans can no longer "make it" I watch these type of videos and am stunned how many people believe that you can no longer build Networth because it just flat-out cost more to live than what you can make which I'm sure you and I both disagree with. Can you enlighten me why these people believe that capitalism and saving is impossible in the United States of America in this day and age?? Thank you in advance forgiving your answer

[@CraigNAnderson]

I will answer it for you, David. Capitalism is to be used. So many people never take advantage of it. They sit on the sidelines. Our society wants to kill it with socialism. Bravo for you! The key to retiring early is lowering your expenses. You have done a great job.

[@hump1953]

Key to building net worth is living below your means… you don’t have to spend your paycheck in its entirety…should invest 20% long term of your gross earnings..

[@clarenceblunt4997]

Because a woman (girl?) who, until a couple of years ago, worked as a Barista (after getting an expensive degree at a private school), and hasn't managed to pay her student loans, got into Congress and suddenly became an expert on finance and economics! AOC- financial and economic genius!

[@vjc4502]

Some aren't willing, though able, to live below their means. We are consumers, bred to waste & want & fomo is real for certain generations. The value of our time compared to the wage earned is not understood or taught.

[@aliannarodriguez1581]

To be fair, young people are coming up in a different financial environment now. College costs have been going up far faster than inflation for decades. At the same time, the education requirements for a even entry level jobs have been rising. Young people are starting their careers with massive college debt and companies are actually paying them less, when adjusted for inflation, than they paid the debt-free college grads thirty years ago. When people feel they can’t win in the current system they start looking for ways to break it. Both the election of AOC and Trump were propelled by this kind of thinking. There’s going to be a lot more of that happening if the number of financially insecure people continues to rise in this country. I agree with absolutely everything that has been said about debt and saving on this channel, but I fear we are looking at a tidal wave that’s going to break all of our nest eggs.

[@adamross6474]

For a country that fought a war to overthrow a class system, you guys have done a fantastic job emulating it. Queeny will be proud 😄

[@stevek7068]

I found this a thought-provoking video. I'll have to say that my attitude toward money, wealth and life has changed over time. Back when I was young and broke, I thought about what physical things money could buy. Now I think about what experiences it can buy. As far as my definition of wealth, it is complicated, but bear with me on this. To me, being independently wealthy, means being able to afford your desired lifestyle with no additional income from work. Being wealthy means being on track to become independently wealthy while still supported your desired lifestyle. Being able to afford you desired lifestyle means prioritizing everything you've ever wanted. This would include essentials such as food and shelter. Desires like a nice vacation. Future oriented things like saving for retirement. And even seemingly impossible dreams like owning your own private jet. Then drawing a line at where your money runs out. If everything in your desired lifestyle is above the line, then you can afford your desired lifestyle. If not, then you can't and you've got some work to do. The lesson from this is that your wealth is based more on your desires than how you stack up compared to other people or some magic "wealthy" number.

[@ErinTalksMoney]

100% yes!!! 🙌🙌🙌

[@davidreidenberg9941]

Sounds familiar. You can/do anything you want but not everything you want.

[@danielcho3270]

Hi, very enjoyable and educational video, well done and thanks! You seem very knowledgeable, competent and precise when speaking and presenting on these topics. May I ask, are you a certified finical advisor, CPA or something like this? If so, makes sense. If not and you are a layperson/hobbiest, iId be seriously blown away. Thanks again.