Money Expert Reacts to Finance TikToks

[@darinaveleva4368]

Tax advisor here, DO NOT take out a loan to pay off the IRS. The IRS offers payment plans that have interest rates lower than a bank personal loan. I would highly recommend paying a tax professional to help with this. You may qualify for penalty abatement or even something called an offer in compromise where the IRS will allow you to settle your debt for less. Also they are not pleasant to talk to and they are absolutely not easy to reach.

[@Capycorg]

I had a good experience with an IRS payment plan. You work directly with the IRS to set it up.

[@dkayok]

I have a relatively low income & I made a major mistake in cashing out part of my IRA. I ended up owing the IRS $12,000. Yikes. But deep breath, and I looked on the IRS website for making payments. I put in that I could pay $60 per month and it was accepted. I paid that for a few years. When I had questions and I managed to get to an IRS person on the phone they were always pleasant and helpful. In fact when I called about making a bigger payment, the agent said to not overcommit; she said stick with what you know you can pay monthly and just pay more when you can. That's what I did and I paid it off early. I did that on my own with just the tools on the website. Now, I never missed a payment, so I don't know what happens if you do that.

[@mariahsmom9457]

They are impossible to reach. Theres no contact information so you have to get an attorney.

[@betz6507]

I owed the IRS a decade back -- they set up a plan where I set the amount I could afford. It took a year, it cost interest, but it was fine.

[@vandydandy2697]

I worked for the Irs and with a click of a button abated penalties of thousands of dollars while the taxpayer was on the phone because the computer said they qualify for it. The key is they have to request it. If they request it they have to see if they qualify for it.

[@Capycorg]

I owed the IRS about $10k six years ago and called them to set up a payment plan. It was less than 3% interest rate. A personal loan at a bank is probably NOT going to be a good solution.

[@Indy4Cookie]

rates will vary. people should compare and contrast. also note that debt to the bank is dischargeable but tax debt is not.

[@johnmeehan7884]

​@@Indy4Cookie bank rates never go that low.

[@einahsirro1488]

Back when I used to do my own taxes, I screwed up and thought I owed the IRS. I set up a payment plan and started paying. About five months in, I got a check refunding it all, plus 3% interest, and a letter explaining that I had done my taxes wrong, did not owe them, and to please stop sending money. So yeah, I don't hate the IRS.

[@thankgodformentalillness6221]

I did the same thing but the IRS didn't do shit. I realized my mistake the next year when I started my taxes. Ended up going to a professional and got $8k back for the 2 years.

[@kelvinalexander4353]

😂

[@TuBui2]

Caleb is a sledgehammer (no pun intended) and ramit is a scalpel. Both are useful in certain situations.

[@msjaylairvin]

Agreed! I started watching financial content with Caleb hammer, and then found Ramit from KZbin recommendations. I feel like I outgrew Caleb, but he was where I needed to start to see what my issues were!

[@Mama2CDHsurvivor]

I watch both. Caleb keeps me from making bad daily purchases that can add up to a lot, and Ramit helps me learn how to grow and manage my money at any income level. I have learned from Ramit that your income doesn’t matter as much as your philosophy with money because you can make a lot or a little and mismanage it either way.

[@rebvanwinkelstein2578]

​@@Mama2CDHsurvivorno taquitos today 😂

[@lmanderson2012]

This is a great description. I know people don't like the yelling aspect but, I see it as more like an intervention. I'm a spender and sheesh, the show definitely reminds me to focus on my financial foundation. Ramits show helps me unpack why I've overspent so that it becomes more natural to follow my spending plan.

[@basilman121]

​@msjaylairvin I did the reverse. But Ramit is still decent sometimes so I'm here

[@lysec9672]

I like how you broke down the research of the 'pink porch' girl. Many don't understand how to spot an MLM so this type of demo is really helpful to the dreamers out here.

[@darbymori350]

As soon as she said pink Porsche and 22 yrs old my MLM radar went off. Thanks to Hannah Alanzo's videos

[@docwho1976]

@@darbymori350 i’ve learned more about MLM‘s thanks to her videos that I ever have!

[@T8rB]

Yes! That part was cool and educational, I think he could make a lot of content about helping people develop discernment

[@coya8coy175]

Yep, that chick was sus as hell

[@realMacMadame]

@@darbymori350 That's faster than me. My radar only went off when she said you do it via sales and that's the only way to do it.

[@elize2952]

I was surprised it took so long for your antennas to go up 😂, maybe I consume too much Anti MLM content but as soon as she said “being a top sales rep” I was like 💀💀

[@imitationpitaya]

Her handle was another hint. “Door to door saleswoman” What ever could that have meant?

[@latuman]

Showing of an expensive car and saying anything like "You dont need a man, you can do it yourself" was an immediate red flag. I would've put down 100 bucks immediately that it's and MLM scam.

[@susans.7661]

Exactly. I knew INSTANTLY she was in an MLM

[@unkobumful]

​@@imitationpitaya😅

[@Emmabobemma4321]

I saw your anti-mlm comment and the moment a 22 year old showed off a fancy car I knew it was her 😂

[@chukuemekaoje1015]

"Good tip for all the bad bitches out there" RAMIT, you didn't have to be so out of pocket like that!!! 😂😂😂☠️☠️☠️

[@ponodude101]

I burst out laughing when he paused it to insert that

[@sarahdamico8283]

RAMIT I WAS EATING AND I SPIT MY FOOD

[@wahinepaddler4]

I usually listen to him while doing other things.. i had to come back and watch that part cause i was like 🙌🏾 💀

[@xoxoinge]

Loved that 😂

[@ourgreenlifenj]

And with a straight face

[@alexsteven.m6414]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[@mariahudson9939]

Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .

[@belobelonce35]

Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.

[@Tanner-c2m]

That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?

[@belobelonce35]

"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@antoniaribeiro8073]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@nodsib]

Pink Porsche Girl is definitely disguising an MLM or similar sales scam pitch as empowering content. Yes, women can kick ass in business and sales and buy Porsches, but not when that those sales go through other women in an up line that look like this.

[@nodsib]

Commented too early, Ramit sniffed it out too 😂

[@chellybaby]

She’s actually not in a MLM which is surprising but she does sell courses

[@KiraBKADestroyerOfWorlds]

​@@chellybaby what do the courses teach?

[@chellybaby]

@@KiraBKADestroyerOfWorlds door to door sales

[@adamp6320]

helps to be born in what society considers "beautiful" when in sales, of course. Sadly, not everyone can use sexuality to make sales. But yes, sales generally has less barriers to entry for high income on commissions, whether its Real Estate or MLMs

[@brianparsons6203]

I'm a mortgage lender and Ramit is right. I ask every single customer what their monthly budget for a mortgage payment is and it's crickets about 95% of the time.

[@ramitsethi]

People are more literally more knowledgeable about their order at In-N-Out than the biggest purchase of their lives

[@brianparsons6203]

@ramitsethi agreed they usually just say a couple hundred more than what they are currently paying in rent if they respond. I'm hoping to start a channel one day on responsible home borrowing from a lender perspective. Seems like there is a need for it.

[@SaraBudgetOrganized...ish...]

When we were looking to buy our house our financial advisor was shocked because we had run the numbers. We started off with what do we WANT to spend all in for housing to be able to live as we want, for us it seemed like buying was better, but we wanted to double check with someone. Turns out we were right, even with the maintenance costs etc buying made more sense. The financial advisor and the mortgage lender were both shocked. I'm very glad that we did this back in 2014 as it has given us a lot of peace of mind over the years. I agree to always doing this kind of calculations, and I advise it to everyone!

[@GeeEee75]

Can you please also remind your borrowers that taking out a homeloan doesn't = becoming a home owner? You don't own your home for many years, the lender does. I think people need to adjust their mindset when it comes to home "owning", because it's often a debt, not an asset (and sometimes/mostly not an investment, because you can't easily liquidate the roof over your head.

[@brianparsons6203]

@GeeEee75 agreed that a primary home should be looked at as an alternative to renting and never as an investment.

[@clarklowe5632]

The coffee question can be big for low earners. If they make $15/hr a coffee milk shake is almost an hour of work so if you get that once a day, 7 days a week it is 10% of your income. twice a day that is almost 20%.

[@rebeltheharem7028]

I agree. Tons of small purchases matter almost as much as a single big purchases for low income earners. In fact, it probably matters more, because they can't actually afford a single big purchase, but they can definitely afford many small ones. For many people making the average US minimum wage of ~ $10, a $5 dollar cup of coffee is like 10% of their take home pay, every day. That is a significant amount.

[@realMacMadame]

My philosophy on these things is that it has to be worth it. The more something costs, the more it has to be worth it. But even small purchases might not be worth it. For some people, if they are paying $9 for a drink, it has to be a way better drink than you can get at Starbucks.

[@JCHarris-iu6my]

This is how you need to explain debt to income ratios to most people to make them understand how easy it is to wind up in a financial hole

[@JCHarris-iu6my]

It’s helpful to learn how to differentiate between a true need and a want

[@JCHarris-iu6my]

We all need food/ air, and water to survive and a place to live is a need as well when you measure the necessities of life against those as your standards then you will seldom make a truly wasteful decision

[@RandomEncounter94]

Humphrey does actually have really good quality videos. His one in your last video was a miss. Glad you gave him another chance! Thanks for the great content as always.

[@RyChOr2005]

Agreed! I've gained additional respect for Ramit because of it.

[@jrangelo]

Totally agree about the IRS, I called them and the guy removed my fines (because I filed my first year LLC return too late). Then he proceeded to answer questions and was helpful and pleasant. Very surprised!

[@DonaldRedeemed]

My first experience with IRS was with 2001 taxes. They tried to claim I owed an extra $1000. Several letters and phone calls later they finally agreed I has been correct from beginning. Then every year till 2011 they claimed to find some error that was resolved with one phone call. They were wrong all but once in 2004 I had a 69 cen income error that made 0 difference to my taxes. Since then no problem.

[@EtherBunny-z7k]

“Good tip for all the bad b*tches out there “ 😂 She’s, like, so inspirational, I, like, want to be just like her. /s

[@amanda.c.ice.]

This is why I don’t have tik tok 🤣

[@leslieh5267]

That's when you knew she was selling something.

[@EmilyInMA]

MLMs are the worst!!!! Thank you for continuing to alert to the horrors of MLMs

[@Jai_BestLife]

These Thursday videos are a great pairing with podcast videos, and the content is getting better each week. Thanks, Ramit.

[@ramitsethi]

Thank you for the kind words

[@nicolevelez8669]

Agree

[@russellmoore8187]

When we bought our house in 2009 (after running the numbers), we were approved for a *$450,000 loan*. That was ridiculous and we knew it - mortgage payments on a $450k house would've been like 50% of our income at that point! We bought a $160,000 house and the costs have always been reasonable and affordable for us.

[@janegarnham]

omg house price 😢 in Australia

[@jamescolley6535]

Same here except mortgage was$102,000. I have friends just now buying houses and they ask what my mortgage payment is and I’m like you don’t want to hear it 😂

[@russellmoore8187]

@@jamescolley6535 Oh dang I hadn't done the math until just now - our mortgage and property taxes are 11% of our net income. Including utilities and 50% extra for phantom costs, it's still just 20.6% 😎

[@drsallymanderchoi]

Crying at how you reacted to the coffee girl saying "and I think it's so worth it to invest.... in a coffee machine" 😂

[@AngeloneHELPLINE]

😂

[@candecarro]

I ran my numbers SO many times in the four years I rented this little second home until I finally bought it. I paid $450K cash, ran the numbers (everything- taxes, lawncare, maintenance, community HOA, minus the savings to be invested. The interest and invested growth on the $450K was hard to calculate, but it was significant!!

[@ntimn8r]

Ramit is too nice, hahaha. How he found anything nice to say on some of those videos was just amazing.

[@stevenspencer306]

Before I bought my house, I had been running a rent vs buy calculation in a spreadsheet. And for years houses in the price range where it made sense to buy were a bad financial decision. Eventually, I got to the point where I was looking at the calculation and thought either way it's telling me I'm going to be a multi-millionaire when I retire. So I decided I could afford to make a bad financial decision in order to have something I wanted.

[@lauracoons9766]

In my area renting vs buying is the opposite. I pay $760 a month for my mortgage+insurance+taxes. The lowest rent I can find is 1000+ for a much smaller home and you don't get to decide what you do with the space (I.e. pets, paint, reno). Plus utilities still aren't covered. Never used to look like that. So weird.

[@Broxerlol]

Just found your channel and have been binging videos all day. I love your focus on living a rich life and how you try to help people understand their relationship with money.

[@hdsensing]

Cars...the most expensive purchase you make that will go down in value. I have a friend that made seven figures in the music industry years ago. His daily driver car was a twenty year old Ford Bronco that literally had duck tape on it. He retired at age 40 with a collection of paid off rentals. Cars are just transportation. Who cares what strangers think when they see you on the road? I see BMWs and Lexus on the side of the road too.

[@suzanneemerson2625]

*duct tape

[@TheThreatenedSwan]

Needing cars is a downstream effect of crime avoidance and things like lower standards from the same cause

[@JJ-zr6fu]

A bmw is really different than a Lexus lol

[@susiehanna4571]

Honestly, I was shocked last week when a bought a tall latte at Starbucks...it was $9.65 (inc. tip) A SMALL!! It used to be $6. I can't justify spending that amount of money on takeaway coffee more than once a week. I can't afford to save $9/day, but last month I did set up an auto transfer for $5/day ($35/week) to my investment account.

[@majormushu]

Starbucks baristas make more than most baristas, get hige benefits like college reimbursement, and unlike small local coffee shops they don't put any care into what they are making they just follow the corporate recipe. Save your tip money for people who make less like servers and local coffee shops.

[@pairofdragonflywings]

The intro editing was supurb! Also, love seeing a response to all the feedback on what subjects to cover. Love to your editor and the rest of the team.

[@lefxxwill7740]

I really like that you reference the exact chapters in your book where we can read up on the topics! Really helpful

[@mirandasiegersma7208]

He said "Move to Florida, get skin cancer and die" I'm CRYING LMAOOOO

[@annushrinavaretnasinggam993]

Me too 😂

[@kckuc310]

lol only with sun screen

[@susantom4400]

The current rate for outstanding taxes is 8%. There are not a lot of unsecured loan options at this rate. As Ramit said the IRS is not that bad to deal with for regular people. If you are a tax evader or doing shady stuff, the IRS is not pleasant. But if you owe money, don’t avoid them. Or if you think you owe money, don’t avoid filing. Call and make payment arrangements and it won’t be that bad. The same goes for the CRA in Canada.

[@goldgeologist5320]

While overspending on a car is not good; a Toyota Camry is an excellent car if you maintain it properly. A Camry can easily last 200,000 to 500,000 miles with proper preventative maintenance.

[@MX-CO]

So will a used one for $5000

[@tracyaf6084]

Every time Ramit tells us we don’t need to login to our accounts daily, I log into my account 😂 I don’t do it to panic though. I do it just because seeing the fluctuations reassures me to not panic when I see the news.

[@ramitsethi]

Please go outside

[@tracyaf6084]

@@ramitsethi 😂 I promise I do. Just walked the dogs. 🐕 🐩

[@realMacMadame]

Whenever the news is bad, I make a point to not check my investments for a while. I can't take the stress of seeing my money go down.

[@Chislevs]

I tend to do the same - I think it is so interesting to see how unstable it is short term. I'm never concerned either as I know I do not need this money short term at all.

[@fuzzymurdermittens]

It's kinda fun watching the numbers squiggle about. Watching the way the investing masses twitch (and how that affects stock prices) during reporting season can be hilarious. I enjoy numbers though, so I guess this isn't an overly common attitude to take towards it.

[@norwaybirds3015]

A much more indicative tiktok from Humphrey. Thanks for being so kind Ramit ❤ love your work 😊

[@candecarro]

The first tictokker, a Realtor- I was also until retirement 6 yrs ago. I had a client who bought a car just before his house closing. The bank reneged on his mortgage.

[@M_SC]

😮

[@lylee97192]

I get what you are saying about renting but there is value in the security of knowing you can stay put where you are so long as you make a consistent mortgage payment. Dealing with landlords doesn't afford that.

[@GeeEee75]

True. That is something that each person should take into account for themselves. It is possible to rent long-term, but certainly not always. It was something that I took into consideration when I purchased my apartment two years ago (fortunately with cash). I would have been slightly better off financially by renting, possibly, but you can't put a dollar figure on the security of owning your own home. It's not worth overextending yourself for, though, because you could end up having to sell up if you can't keep up with your repayments because of interest rate rises.

[@sjanew]

My ex and I had a rental house that we LOVED and we were considering asking our landlords (lovely people) about a rent-to-own scheme. Before we could do that, they told us they were selling their current place to move back into the house we were in. I was absolutely heart-broken. I bawled on and off on moving day and most of the day we went back to clean the house after we moved. I never want to go through that again.

[@GeeEee75]

​@sjanew How awful! It's always a risk when you rent. It's worth bearing in mind that buying a home is not risk free, though.

[@sjanew]

Bought our current house in 2013. Familiar with it all - increased insurance, property tax, major emergency home repair. It’s not for the faint of heart! No regrets though. Most of the time.

[@trumpetbob15]

That is a bit of the non-financial impact of renting vs. buying most often overlooked. For me personally, while I ran my own numbers when I bought my first house, I was more than willing to take more risk on the house simply because I knew it would be less noisy than renting! Not having the person above me blasting their TV at 11pm or some random dog barking in the building at 3am was worth far more than I could put a typical price tag on. (While my neighborhood still had dogs that liked to bark, it is amazing what them being down the block does to the noise level compared to them being on a different floor in the same building.) It is important to keep the non-financial benefits in consideration in these decisions too. That's also why my wife and I splurged on the more expensive vehicles when we started dealing with car seats. Sure, may cost a bit more, but I'm already likely to have back issues when I age; why would I put more stress on it dealing with the hassle of car seats in a tiny vehicle?

[@trackee2024]

That thumbnail got me hyped for a Caleb Ramit throwdown. What a tease!

[@dianabinkowski3927]

What makes me feel the greatest is I save a bit over 30% of my monthly income. I live way below my means. I have a credit rating over 800.

[@maggielapido548]

Same. The peace it provides is priceless.

[@thomaslunden]

This is the way.

[@IrisP989]

Do you have kids? Do you live in a low cost of living area?

[@ricker024]

I go even further reaching up to the 40% margin\month.

[@IrisP989]

@@ricker024 Is that while having kids?

[@kiterafrey]

I love your comment about having a team. I think sometimes people forget we NEED 9-5ers. We need doctors, lawyers, firemen etc. And we also NEED people to work at the established businesses as well at every level. We need people who answer phone calls. We need people who help assist business owners. We need people to cook the food at restaurants. And, even if we didn't, not everyone wants or is built to be an entrepreneur, it takes a specific mindset and skillset.

[@Elishadreams]

Im glad you went back and took a look at some of Humphrey's other content ❤ Thank you!

[@goldgeologist5320]

These young social media influencers are going to “steal with pride” from multiple sources! And you are an excellent source!

[@jemellee]

this is actually one of the best videos ive watched about finance cus you ACTUALLY FACTOR IN REAL LIFE EXAMPLES. so glad i found you.

[@chaselesser3191]

Ramit. I upped my retirement investment to $3100/month. My mortgage is $1350 but I bought in 2019 and refinanced later to 3%. The homes beside me rent for $2100-$2400

[@laundrygoddess4]

Rentals in my area are hard to come by, especially if you want a dog. Here it's cheaper to buy even with 50% phantom costs. But in bigger cities it can be a better place to rent. However, my home is paid off and when I retire and don't have rent to pay... That's a piece of mind that is priceless. People need to learn how to really know if you can afford it. It's not because you can afford the monthly payment. As for coffee, even if you can afford it, some people don't value it enough to spend that much for a cup. That's a valid feeling.

[@M_SC]

❤ 🐕

[@HDCybersun]

even owning your home you have rent to pay, to the government. Property taxes and home repairs and most likely HOA fees. Some states are better than others for property taxes. But you'll always be paying those fees. Sure it beats rent if the mortgage is gone, but property taxes and home repairs will always keep going up, forever, and you'll never escape it.

[@laundrygoddess4]

@@HDCybersun it's not free but there are no hoa where I live. It does help a lot that's for sure.

[@JJ-zr6fu]

Pets are finically horrible.

[@laundrygoddess4]

@@JJ-zr6fu as bad as your spelling? 🤣 You don't have kids or pets to save money. You have pets to be good for your soul and bring joy to your life.

[@rebeltheharem7028]

Yeah, the Rent vs Buy in metropolitan areas is crazy. Where I live, the average home costs around 1 million dollars, which equates to a $7K for a 30 year (or around 8K if you include ghosts costs), while the same cost to rent an equivalent place is only $2.5K. This usually means the real estate market is being highly speculative and is in a bubble if the mortgage is 3x the equivalent rent....

[@vandydandy2697]

Those 1 million houses could be 5-10 million in the right area 25-30 years from now. They’re a million $ because they’re a desirable asset.

[@rebeltheharem7028]

@@vandydandy2697 Yes, and the same investment of the difference of $5K in an ETF for 30+ years could also match or exceed that amount as well, meanwhile, you have much more spending room, much less stress about a mortgage, and far more safety if some financial hardship comes like losing a job. Besides, if you don't sell the home, then it doesn't really matter what its worth because its your primary residence and you will live there until you die, and if you do sell the home, 10% of the sales prices goes to the fees related to it, (and the max capital gains tax you pay on that sale if you don't qualify for special exceptions), so you are only looking at keeping 65% of the "gain" from the sale of the home, compared to stock investments, where you keep 80% of the gain on the sale of stocks. Statistics are always on the side of Renting when the buy to rent ratio is that high. Only when the rent is roughly 70% of the mortgage payment, is where buying may be better than renting.

[@TheRailwayDrone]

I have to say I am one of those people who didn't fully run the numbers before I bought my condo....in Washington, D.C. Anyone who lives here or who has lived here knows how expensive it is to buy in this city. But I recognized I could be investing a whole lot more if I rent. So I'm putting my place on the market. Besides, I miss renting, especially in certain neighborhoods here. I miss having access to all the amenities that come with renting some apartments (pool, gym, rooftop, etc). So I'm definitely going back to that and taking the rest of that mortgage payment and investing it. I only wish I found this channel, book and Netflix show BEFORE I purchased my condo. Lesson learned.

[@stevenspencer306]

I rented for a long time before I bought because I did run the numbers. I had a lot of people tell me, "but you're not building up equity!" I was however investing the difference. I'm sure I'm better off financially than most of those people now.

[@GeeEee75]

And you didn't have to stress about rising interest rates.

[@vandydandy2697]

You’re the exception. Most people who don’t buy aren’t putting extra money in the stock market. Most people should buy.

[@stevenspencer306]

​@@vandydandy2697Most people are bad with finances. I say "don't be most people."

[@stevenspencer306]

@@GeeEee75 Eh, I don't know. I feel like that's unrelated. It just makes the calculation supporting buying harder. Home prices are supposed to drop as rates go up, but they didn't. It just made more houses unaffordable.

[@Smokychedda64590]

In addition to your point about being a landlord being more work than people realize... Do you want to be part of the housing problem? Even if i was interested in (and could afford to) rent out my first house with a low interest rate, i don't want to contribute to the low supply of smaller homes that families can buy. It's already becoming too hard to be a new home owner. If everyone kept all their houses no new people would ever buy

[@puredreadhead]

Did anyone else scratch their head at the math here “ you go out and spend $30 for each meal, breakfast lunch and dinner, that’s $60 in one day” 🤔

[@Holthyr]

Right! If I spent $30 per meal, I'd be broke at $150 per day...

[@JCHarris-iu6my]

It time for someone to eat a sandwich for each meal for a while

[@zacharyjohnston70]

We bought in 2020 at about 47% of our budget and now renting prices in our area is double what our mortgage is. In the same way you can't time a market, avoiding buying might be an absolute shot in the foot. Now it is 30% of our budget and we aren't struggling.

[@FPLAlexa]

Your channel is the only one where I can watch/listen to while outside the KZbin app on iPhone If you’ve done something to allow this premium feature then I have to thank you

[@mumuzeze]

It’s the KZbin algorithm it usually blocks “music and entertainment” from outside the app to get them to buy premium. Most informational videos that don’t get flagged as this can be multi-tasked which is nice until KZbin decides to get rid of this feature. The android phones also have a lesser threshold too to allow multitasking - it’s called the “iPhone tax” literally the premium is more for iPhone and only 1 month free while androids getting 3 months free with $14.99 not $19.99 monthly :)

[@candecarro]

The creator who said the stock market crashed- maybe so. But the market comes back a few days later. It got crushed primarily due to certain investors having to cover their leveraged positions.

[@realMacMadame]

That's not a crash. It's a momentary downturn.

[@SideGig]

Rachel Cruze is Dave Ramsey's daughter and his protege. So her saying a loan was ok for anything is surprising, and probably the point of the video.

[@KatySanchez-nt9si]

What she's saying has been DRs advice for over a decade. I'm surprised she didn't say getting a mortgage.

[@GrahamStephan]

Thanks for watching my TikTok!

[@vandydandy2697]

You should do a reaction video to his constant anti buying real estate narrative. Just think where you’d be without ever getting involved in real estate.

[@ancaanca36]

Good one the strategy to use the thumbnail with Caleb Hammer😅....

[@casey2124]

@@Britt4880sad part is Caleb has been nice about ramit. He states he doesn’t really know ramit or follows his channel but likes him as a person

[@anderspedersen6750]

Totally agree on the comments on IRS. 2 interactions, first one they agreed with my arguments and changed my return back to my original instead of their adjusted. Second time I literally missed putting some income on my return. They offered up front a settlement on back taxes at some percent if I paid withing a short time frame.

[@makeanddohandmade]

I genuinely look forward to the video you make when you DO buy a home Ramit! I think it’s going to be so interesting to know what you bought (size, type of home) the reasons why you chose to buy at that point in time, etc.

[@Thebignagro]

This is some god tier content i wish i saw 10 years ago, thanks man keep being awesome 👌

[@TheNurseInvestors]

Damn, a car that’s 30% of your income is crazy😱 I’m almost done paying off my car hallelujah

[@simonegallo2853]

I don't find a good car with my 30% income (9000€) and low miles than my actual car.

[@steinarthor571]

It’s refreshing to see a KZbinr who goes point by point and actually completes their thought. I feel that the industries become too bite-size with their videos.

[@ronnie5329]

The 22 ye old pilates pink car was a walking red flag, "you dont need no man" and the fake persona

[@ryandelosreyes9083]

I appreciate how honest you are in your videos and podcast Ramit. I wish I would have stumbled across you before I bought a house!

[@julesjma]

I work Hospice, a home is something people leave to their kids to fight over, clear out and throw out all of the stuff they have lovingly collected over 70 years. Unless you collect Priceless artwork, your kids don't want to Hummels.

[@hulatavares7763]

I have had my car for almost 20 years… Penelope (car name) is a teen now, no payments on her a long time. I do take care of maintenance etc, now I do have some things to do, but it’s worth. The fixes I pay just extend her running life, 233,000 and counting.

[@OspreyHomeInspection]

That's amazing! What's the make/model?

[@hulatavares7763]

@@OspreyHomeInspection thank you! It’s a Mazda 3 sport. ☺️

[@bmonq]

🤣 i love when you slowly and then suddenly lose your shit in these videos

[@candecarro]

I believe you when you say only 5% of people run a buy vs rent calculation.

[@david72995]

Ramit I hope you see this. A woman deeply in debt just referenced you in Caleb Hammer’s video. She spends thousands at the casino hoping to get rich, saying she’s living her rich life.

[@bobbybobby-zt1pt]

I just saw this! Funny that Caleb got Ramit’s name wrong too

[@Luci-pz8xx]

The Porsche girl was giving mlm, OF, or daddies money from about 10 seconds in.

[@sydney-my4zn]

Really been enjoying this style of video!! Nice little tidbits of info.

[@IrnBruNYC]

The look on Ramit's face during the "Porche Pilates Lifestyle Girlie" video is priceless.

[@777sweett777]

Ramit...I HAD to STOP washing my dishes by hand to make this comment! "That death bed scenario was HELLA FUNNY!!!! 😂🤣😂😂🤣😂🤣😂😂❤ No worries! This is one listener who will take heed! 🤣😂🤣❤❤❤

[@vacationrentalprofitlab]

Ok- renting for 20 years. What if you purchased a house in each place you lived, and then hired a property management company at 10% and hold and rent -what would the net worth/income be? I'm not talking about buying and selling a house in each new location, and not selling - no more transaction fees, 10% for property management company, 10% for maintenance. I assume you've run the numbers - so would love to see them!

[@jasminelivingintorah9491]

You are hilarious 😂 and encouraging at the same time. Thank you for decreasing the mental pressure in my life.

[@PInk77W1]

Me 63. High school dropout No car. No car payments. No debt at all. Home Paid off. Money n the bank. Life is good.

[@darylyost7273]

What! I thought I was the only one! 😊 only difference I own my truck and all my toys!😊

[@PInk77W1]

@@darylyost7273 I own a lot of toys But no car.

[@M_SC]

Good for you🎉 It doesn’t usually turn out that way for drop outs, I wouldn’t advise that to others.

[@AsheSinclair]

Smooth transition into DeleteMe sponsershiip. Your facial expressions and energy are so entertaining. lmao

[@kiterafrey]

When I was in college I worked in various min wage jobs. The poor tax really hits min wage workers. At McDonald's people would need slip proof shoes. Often times when hired they had no money in their bank accounts so they couldn't just buy good shoes, or even cheap $35 Walmart work shoes. So, they'd have to use one of the programs to get shoes but the cost come from their first paychecks. Those shoes would be $70 or more but still the quality of the $35 ones. Many of my co-workers lived in the city and had hardly anything after paying bills. So they often wore the same shoes when not at work, myself included at times, so the shoes would wear out faster. And when you can't purchase a good $200 pair that'll last 5 years because of the up front cost we'd end up spending $200 a year over time replacing shoes every season. -- And for some people, they'll never get out of that cycle and having been born into poverty I know just how hard it is to class jump because not everyone is going to be born with skills or be good in school and get scholarships.

[@mlobimkhize5444]

Really love how Ramit smoothly transitions into an ad 😂😂😂

[@niknak950]

lol she did not look 22 to me. In her late 20s sure, 22, no. I always find it so odd to see young people coming on and bragging about how rich they are at such a young age. I don’t believe 99% of those people are rich at that age without significant family support in some form or another. And somebody having family support to get them to high economic status does not impress me. good for them, but it doesn’t impress me.

[@LinksterGaming]

i started my own construction business so i could build the house myself lol. no mortgage, truck is paid off and im 29. now its time to lay low and work easy the rest of my life

[@terid6708]

Calm down Ramit! Don't know what I'd do without your coaching. Love you and your videos. Thank you. Don't know about the feet thing.

[@matthewcondon137]

Not sure if you have already, but you should do a video on recognizing MLM scams. Especially covering the father of them all, Amway. Really enjoy your content.

[@tspencer661]

I have a friend who has three mortgages. She lives in one house and rents the other two. She recently had to pay for a $50K repair because one of her tenants didn’t inform them of a leak. She had to pay for this tenant’s hotel stay. (I don’t remember all of the details of the story.). She obviously couldn’t rent out the house until it was back in good condition. Houses require upkeep. Plumbing, leaks, electrical, new roofs, HVAC units. As the home owner, it’s your responsibility to cover the costs of these things. It’s not a tenant’s responsibility to pay for these repairs. I think a lot of people don’t realize how expensive it can be to rent out a home to someone else.

[@GeeEee75]

Did her landlord insurance not cover the costs?

[@tspencer661]

@@GeeEee75 I don’t know.

[@sumitarath]

This! Folks don't realize that most appliances and interior of the homes age and have to be replaced. When they are running numbers for 30 years, that's nearly all appliances/interior in house replaced TWICE! Appliances =furnace, hvac, fridge, stove, ovens etc. Interior =carpets, flooring, windows, bathroom fixtures, etc. Tenants are *hard* on all of the above, and not always truthful about reporting issues.

[@archeanchaos-s4c]

A house should not be seen as an investment. I love my home and I bought it because it was the place I wanted to retire. I do count it as part of my net worth, but I would never buy a house as an investment.

[@sct4040]

I agree, I don’t count my home in my net worth neither. It’s worthless until it’s sold.

[@OspreyHomeInspection]

You're right a house is fantastic but you can't eat a house in retirement. I think of primary homes and vacation homes as liabilities and rentals as investments. But rentals NEED to be managed and maintained properly and no (or very low) mortgage

[@GetGwapThisYear]

For real. Anything that costs you money to maintain is a liability, no matter how much value you get from it.

[@mayettverano9033]

❤❤❤❤❤😂😂❤😂😂mm🎉❤❤❤😂😂❤😂❤

[@mayettverano9033]

A😢😊😢

[@harrycee656]

Mortgage is stability. Location stability for work and family. Expense stability. No one can raise your mortgage with a fixed loan. In the end we paid 350 in rent for 12 years. Owning is a lifestyle choice. It's not an investment.

[@baconcerberus]

My one true fear. Being in a zombie apocalypse where the zombies keep saying “what about inflation”

[@KnineFeline]

That foot pic lead in had me dyyyiiiinnnnggggg 🤣🤣🤣 I admit, I don't even see the ad coming, great job!

[@jamesgilleniii]

I’m a realtor, and I love how your videos challenge old ways of thinking. Thanks @Ramitsethi!

[@margaritafiduccia6562]

You can make a payment plan with the IRS, just do that and pay it. Their interest is way lower than a loan.

[@jimmy6886]

What I have learned about people that build their wealth and work hard…. They don’t brag about it. They might have a nice home, etc… but they don’t have time like these Tik Tok people to sit around and brag about their car, etc.

[@sf3413]

Back when I was 21, totally fell for a marykay scam. Lost so much money.

[@amandaprather6573]

Banks will approve you for more than you can afford. An approval does not mean you can make the payment!

[@Vetterin-itt]

As always, a great video. In my opinion, however, the calculation of opportunity costs is missing the amount that you can invest from the point at which you no longer have to pay instalments for the house, but would continue to pay rent. Let's say my house is paid off by the time I'm 60 and I live in it for another 35 years (like my grandma did), paying no rent but only service charges and maintenance. Then I can invest the difference to the rent that I would have to pay for 35 years, which increases every year, on the capital market. If I factor that into my calculation, then in MY CASE renting is not worth it at all. It would cost me more than 1 million more.

[@piccola2920]

I'm dying laughing here! Feet pics! Shirts off!!! 😂 Keep up with you incredible mission, I enjoy all of your videos. I purchased you book and I am learning so much from you. God bless you for what you do. I grew up in a family where all this knowledge was just not there and I am learning at 40. I am deeply grateful to you and your work. Thank you!

[@GetGwapThisYear]

Buying a car via a long term loan is literally the biggest mistake I ever made. I now lease for the same reason Ramit recommends renting over buying a house - I pay a relatively low monthly cost (about 12.5% of net monthly income) that includes a service plan. If anything goes wrong with it, Ford handle it for me (with the exception of tyres), and after a period of 12-24 months, I swap it for the newer model. Never have to get an MOT (annual road worthiness check in the UK for vehicles over 3 years old) and haven’t had to so much as change a tyre or an oil filter in 4 years, knock on wood. Lol.

[@achandoo22]

Let's go!! Hope we get to see a collab at some point between Caleb and Ramit

[@Amyreadingabook]

Caleb is so into just shaming his guest and click bait. I think it would bring my view of what Ramit represents down to do a full on collab.

[@jerrystauffer2351]

Good cop vs bad cop

[@achandoo22]

@Amyreadingabook I personally prefer Ramit's approach...unfortunately, some people just need a good old fashion but kicking as most Americans have "0" Financial literacy and their eyes glaze over when getting into basic financial principals. Nonetheless, it would still be interesting to see an episode (podcast or video content) with the two of them

[@excadrillo99]

​@@Amyreadingabook honestly I want to see Ramit rip Caleb a new one lol

[@MidlifeMoneyMoves]

I’d prefer to see Caleb stay in the toxic gutter of KZbin culture where he belongs.

[@juliadanis9504]

7:37 if you hear that background music, you know to take what they say with a grain of salt lol music made for fearmongering 😊

[@MattSezer]

Buying protects against rent increases. While it is true that at least where I am (NYC), it’s cheaper per month to rent in most cases, the amount that you’re saving is going to decrease every year as rents go up. That being said, I bought earlier this year and after a 30% down-payment, my total monthly housing costs are equivalent to what my apartment would rent for. I would definitely make way more in the short term and invested the down-payment in the S&P500, but in just a few years, I’ll likely be paying less per month that I would in rent. Mortgage interest and taxes are also tax deductible, whereas your rent isn’t.

[@ramitsethi]

What neighborhood / what was the difference in rent vs mortgage?

[@30andBoard]

Love these reaction videos!☺️ Ramit laying down some truth 👌🏼

[@toddw.8277]

I am searching internet and want to decide who to follow ……. You bought a pink Porsche? NEXT!!!!!!

[@heidi5452]

I love when you get angry😂❤

[@legacymindset23]

Financial content creator starter kit: 1.microphone 2.bookshelf 3.books in the background that make you sound smart 4.sells you course on how to be rich 5.says things like “invest your money” but you make 18hr.

[@claudiathomas3560]

Loved this!