Reacting to My Subscribers’ Finances

[@Yourmission9]

I was in the same scenario, high debt, good income, spent lavishly, I’ve always been a very sentimental person, finally I shook things up because nothing was changing, sold my new muscle car and bought a 5,000 civic, started investing in S&P 500, and purchased the most basic food from the grocery store, it took about a year but I have savings built up that I could’ve only dreamed of before. My point being building wealth can take some changes, but once you get that routine down it’s remarkable how quickly the change takes effect

[@IAmebAdger]

Hey, good on you for getting yourself a richer future! Just make sure you budget in an amount to build a spending muscle and enjoy your younger years as well or you're not gonna know what to do with all your multiple millions when you're older.

[@weswest8666]

I swear there should be a book called used Honda millionaire. It’s the fastest way to become a millionaire imo.

[@jenlollygag6815]

I love this 💗

[@mwase7782]

​@@weswest8666 fastest sure bet method maybe

[@guidedbybreath2702]

Good work!

[@shrtblondie1]

Love seeing a single person's financial review. Many of the financial discussions on KZbin are for couples. Would love more of this content. It provides hope to see singles get out of debt and secure a great future for themselves because it is relatable.

[@jjred233]

I like those videos as well. To be honest, a single income is very bad from a personal finance viewpoint. If the income is not higher than the national average, then trying to decrease cost of living along with debt will be nearly impossible.

[@TimeLordVictrix]

Caleb Hammer is a great channel to check out for that. He does financial audits for mostly single people.

[@RL-1984]

Yes Caleb Hammer is awesome!

[@livelaughlove4635]

@@TimeLordVictrixThanks for that info. Will check him out. 👍

[@BuiltonGODSrock]

They do their debt free screams on the Dave Ramsey show too all the time!

[@ValerySherina]

Thank you for choosing CSPs from parents with small children (HIGH FIXED daycare cost), single parents (one income). It's a different world for people with kids. Highly appreciate it.

[@BuiltonGODSrock]

Thats why i dont want none and people think im crazy 😅

[@DiegoMejia86]

​@@BuiltonGODSrockthis is why I like Ramit over Dave Ramsey, Dave would tell you to eat rice and beans, invest early and don't have kids until later in life. Well that's great if you're young, but what do I do if I'm already in debt, have kids and a failed marriage. Ramit is more realistic.

[@BuiltonGODSrock]

@@DiegoMejia86well to be fair Dave never tells u to wait and have kids but I do feel like doing multiple things at once gets nothing done effectively 😅

[@FoxyBoxery]

Thing is, atleast in Europe, idk about the US, you get child benefits for each child you have. These benefits obviously aren’t quite enough to cover all expenses for the child, but it helps alot. It could cover atleast a third of the expenses easily. Take advantage of them

[@ValerySherina]

​@@FoxyBoxery oh wow. That's awesome! Unfortunately, not in the US. In the US there is a child credit you can claim on your taxes at the end of the year, but it's small compared to expanses. Parents can put 5k pre tax for childcare per year, but as you see in one of these CSPs they spend over 3k PER MONTH on childcare, it's a disproportionate amount. I wish the US would catch up to the rest of developed countries and value new small citizens. Parenting is hard as it is, additionally, in the US it's extremely costly.

[@doireannrenzi7815]

Honestly, I read the book, watched the show, and listen to the podcast episodes but this may have been some of my favourite ever content. Practical, clear, and useful! I’ve already implemented the strategies from the book and it’s totally changed our lives but still love visiting content like this to learn more. Loved this one!

[@lowlowseesee]

i use all four of them and its super helpful lol. helps me teach this to peers and helps me with my own journey

[@Clockwork_999]

I love this, please make this an ongoing series Edit: it would be nice to see their ages-gives us an idea of how much it might have took to accumulate wealth (if there is any).

[@daveobrien2365]

The age is on there

[@gaelenoconnell-bidabadi]

I ❤ these types of videos, Ramit! Please consider doing more of them in the future or even making it a regular series. It’s so interesting to see your commentary and customized recommendations for each 🎉

[@LL-pq5uo]

THANK YOU FOR INCLUDING A SINGLE MOM'S assessment -- love it

[@sjont]

I love how he provides a melting pot of different finances and situations. It allows more people to be seen and heard!

[@Beetroot999]

Really insightful and hope Ramit continues these, on the other hand, as someone who read the book, has listened to all of the podcasts and gets excited every tuesday for a new episode, I'd love to see more episodes of single parents, long term couples (but not married) and single people with incomes around 50-90K total. It would be interested to see how on a low income you can create your rich life and what that would entail in order to achieve it. Often times for the episodes (and I get why he picks married couples) the incomes are 100K+ or close to it and it misses the opportunity to teach single people or serious relationships how to discuss finances prior to marriage and guide them to success and how to approach finances when coupled in the future. Just a thought that I have had for a while already

[@ILovePlants33]

Agreed with that income level for shows. I think that is where more of us are that need guidance

[@Jaxxv01]

That is literally my situation. Long term couple, 90k, LA. I always think it would be the most boring summary because we just barely make it work and still have a life.

[@Beetroot999]

@@ILovePlants33 Exactly, and there's a big missed opportunity by not showcasing cases like that, where most people are trying to make the jump and learn how to achieve their rich life

[@Beetroot999]

@@Jaxxv01 But that's exactly why cases like yours would be so important to showcase, to show what changes and routes you can go and how to create your rich life. Especially because a big portion of the people are in those ranges and sets future married couples or long term couples or single parents for success

[@mohamudhure9041]

Utteredyouu 7😊

[@masterfiddler11]

Groceries - before our marriage, my spouse and I individually spent $500/month each, but after living together we cut to $400/month total. It can be done! We even love the food we make more than ever now, it feels like we spend more despite cutting over 50%. It took us about 18 months to replace unhealthy high priced items, but we feel healthier than ever and our investment accounts do too 😉

[@StinkyBinky24]

What was the biggest groceries saving? I know that for example, prepackaged, cut & washed produce is more expensive than if you did it yourself. Anything else?

[@masterfiddler11]

@@StinkyBinky24 changes to foods I personally ate included cutting out breakfast cereal (way too expensive, not at all healthy and overly processed). Replaced with oatmeal, toast with delicious real butter, or eggs. I also gave up my pizza habits - used to order out at least 2x a month, now it’s maybe 2x/year - usually I just make a pizza myself and enjoy way more! I also have a craving for fries often - now I just cook my own at home a few times a week, and they’re way healthier than restaurants that charge way more. My wife didn’t have as much to change - she was raised vegetarian and mostly a healthy eater, so mostly for her it was us working together to cut out food delivery due to her work hours. Together, we now cook almost all of our food - rice, beans and lentils for a cheap but healthy base, and we sauté veggies and even make our own desserts. My sweet tooth previously had me buying all kinds of processed sweets each month - now we’ll make rice pudding or sweet carrot desserts, and occasionally share a few pieces of chocolate. Long answer, sorry! But ultimately it’s been more than just changing what we eat, but how we eat too.

[@jdeux3677]

I budget $300 for groceries for 3 adults. I cook a lot

[@jdeux3677]

​@@StinkyBinky24non brand name grocery stores. They have lots of fresh vegetables and fruits for low.

[@maxinoume]

@@StinkyBinky24 Pasta is extremely cheap. Last year, my total grocery bill for the year averaged at $375/month (including toiletries like toilet paper, soap, razor). I ate a lot of pasta and I even bought already made sauces because I didn't want to cook my own sauces. This year, I haven't bought any pasta because it isn't the healthiest of foods and my grocery bill shot up to $500 with this single change. It's a change I budgeted for and I don't regret it but I find it's still a great tip if you want to optimize for money for a little while.

[@shawnagbatah8336]

My biggest take away is that it is ok to have a period where you are tight because of temporary situations that will pass. I stress about it sometimes but I remember I have to be patient.

[@jdeux3677]

Hmmm good advice

[@Salsajaman]

You can get out of almost any tough financial situation as long as you maintain good habits. Consistency leads to success.

[@JoshuaCoogler]

I love watching these. The nugget of truth I learned today was to "keep the factory open". Such good advice. Thanks.

[@jackie7061]

I love that you talk about the emotional aspects of money, something i'm trying to figure out. So relate to third person - my credit union forced me to open a savings account on the spot because i had 7k in chequing. I'm good at surviving in little, terrified of moving money. Also hate my job but it's totally changed my life and anxiety. Years ago, a dr told me to focus in "possibilities" and i still struggle with that. It's hard to unfurl when people are so black and white about money, you hold space for the deeper reason and i appreciate that. Also: i track my groceries. Every. Single. Item. I went from hoarding for the unknown to abundance and actively have to reel it in. It's tedious but keeps me accountable.

[@JasRoss]

The problem with most savings accounts is they also yield next to no interest. (Chase and Bank of America paying 0.01%) I would be sure to shop around a bank that offers a competitive money market savings account, which should yield upwards of 4-5%. Heck, you could open a Fidelity individual investment account and the UNINVESTED cash balance yields about 5% (4.2% after fees). If you were certain you didn't need the cash month to month, you could also use Fidelity to buy 1 month US Treasury Bills which pay ~5.3%. Then each month you could reassess if you need any of that money or just reinvest into the next monthly T-Bill. My point is, read the yield that your "savings account" is giving. There are some great offers out there, but also some really cheap banks that aren't paying fair cash value yields.

[@mchristian5217]

Love these. Economic literacy is missing from our education system, maybe on purpose. We need to do better and give our society the tools to be self sufficient and reduce financial dependence and stress.

[@Elena-rt9yu]

It’s very deliberate, only kids from affluent families are taught. That way, they have the next army of fools, making their wealth.

[@theslimecrew4827]

And where do you fall in that categorization? Haha​@@Elena-rt9yu

[@miks8]

What I am missing is how you account for larger purchases (technology, phones, TVs, furniture, etc.). What I do is setup something what I call "private insurance", an amortisation account - f.e. I will send 200-250 a month to that account, which is technically a saving, but I treat that as a (future) cost. Those are not savings, its already spent but in the future, so when my phone or stove or fridge breaks down and I need replacement, I take cash from that private insurance account so it doesn't impact my monthly operational budget. Big benefit is that it exposes clearly your hidden lifestyle costs. You see what your fixed things and assets cost you per month.

[@catherinem7066]

Love this video format - appeases my nosey self and it's fascinating seeing how people prioritise their money. Agree that it's hard to gauge how much one spends accurately on groceries. I'm in shock to see how people, ep those who can afford to, don't aggressively attack credit card debt with overpayments.

[@jeromehenry4484]

FYI: 40% of credit card holders pay-off balance EVERY MONTH, they are not carrying over a balance, hence they avoid interest yet usually make cash-back or airline miles. If a person has a decent credit score/credit history, they should consider getting a new credit card each year. There are so many No Annual Fee cards, with a Sign-up Bonus, and usually 12+ months of 0% Introductory APR. Always handy to have a 0% APR card around just in case an unexpected expense, or income drops & payments need to be extended beyond current month.

[@donaldlyons17]

They have other things to pay for so how can they aggressively attack anything?

[@davidmulligan42]

This is the kind of info I wish I'd known about when I was in my twenties! I opened a Roth IRA for my daughter a few years ago, and she contributed money from her summer jobs. At 19, she's in college with a net worth of $12k, and no student loans. We were talking last night, and she said she must ask her boyfriend if he has any student loans, just in case :)

[@Nat_Jio]

Yes important not to let her get tied up with a person not on the same page financially..

[@OlufunshiAyo]

I am 41 and worth only 7k...I feel so worthless....

[@3lackSwordsman]

​@OlufunshiAyo About 2/3rds of Americans cant afford a 500 expense your doing a lot better than most. It's difficult out here.

[@jefdby]

​@@OlufunshiAyoif it's invested it should double every 7 years... that's 14 in 7, 28 in 14, and 56,000 in 21 years. Keep contributing!! You'll get there.

[@bobcantstandzyobitz9778]

That should be over 1 mil by retirement. I always try to tell young people to save up as much as possible the first few years in adulthood. Not only does it snowball but creates good habits.

[@mrs.quills7061]

To cut on my groceries I’ve replaced a lot of meat and fish with tofu! If you get the extra firm you can cook it with veg and it’s often 1/4 of the price and much healthier too. I make it with rice, beans, broccoli and mushrooms. It tastes really good with paprika and I tend to have leftovers for a few days. Unlike meats too it won’t spoil as quickly. I can’t eat dairy, but I could imagine putting cheese or a creamy sauce with it. It took a bit for me to get used to the texture and understand how to cook it, but it’s a great way to cut costs and still be healthy!

[@keithwisdom1663]

Salmon 😊

[@mrs.quills7061]

@@keithwisdom1663I love salmon! I usually only get it when it’s on sale though. Tastes so good with squash!

[@keithwisdom1663]

@@mrs.quills7061 Can you mesh up the tofu with avocados beans spices, etc to make burgers?????

[@keithwisdom1663]

@@mrs.quills7061 can you make burgers with tofu,,, mix it with beans avocado spices ETC

[@lizzabbott]

Careful w salmon. Only get wild ; not farm raised. Of course that costs tons more. I love salmon, too ; but recently I’m hearing it has parasites in it ? Not sure but maybe …

[@johannamiller527]

Couple #2 isn't in anywhere near as dire a situation as you've made them out to be, if the $3400 on debt payments is way more than the minimum (as it almost certainly is). They're making a conscious choice to live lean for a while so they can attack the debt and get it out of their lives. That's a very different scenario than if they really did have 90% of their income tied up in bills and minimum payments. Maybe you could consider revising the CSP template to categorize extra debt payments separately from minimum payments? Extra debt payments aren't really a "fixed cost" (since you can always pay a little less in any given month if you need to). It might make more sense to think of them under "savings," since they're going toward building your long-term net worth.

[@cleb5558]

This

[@vulpixelful]

The problem is that they are in their mid-30s, which means their window for some great investment compounding is shrinking. If the debt left is low interest, especially if it's their mortgage, they can take their foot of the gas and redirect _some_ of the debt over-payments into investments. Plus, their savings for their age and income is pretty low too. And savings also keep you out of debt by eliminating any chance you'll need to turn to credit cards. I'm doing the same thing on a bit less gross income than them, and I'll be debt free _and_ have my investments compounding at a high rate, very soon. I would rather that than be debt-free now but being behind in investments. You can't really catch up on lost compounding time, even if you contribute substantially more later. There's more than one financial goal that matters. It's not all about debt.

[@tomaszp2027]

That's my understanding as well, and those are the important bits of information that are missing here. Amount due, and what's paid over minimums + the APR. Also overpayments should not be included in fixed costs. It's more of an 'investment' in my book.

[@johannamiller527]

@@vulpixelful Right - you can reasonably debate whether throwing everything at the debt is the right choice for them to make in this situation. But my point is that they DO have that CHOICE - i.e., it's not really a "fixed cost."

[@vulpixelful]

@@johannamiller527 It functionally is, same with subscriptions. You can choose to cancel subscriptions too. "Fixed costs" just means "expected expenses", it doesn't mean that they are all "stuck".

[@DrakeNAllen]

That 2nd family is 100% doing the Dave Ramsey debt snowball, but he didn’t get that they’re throwing all their extra funds at the student loans

[@JonathanWillis]

Never heard of this. Just had to read up on it. I get the psychological advantage of seeing debts go, but you need to focus on he interest. Unlike overpay Mortgage vs Invest in stocks argument, the interest on debts is well known and fixed, its always better to pay off expensive debts first.

[@violinperson1835]

Yeah. They’re probably trying to get rid of debt as quickly as possible.

[@CSpottsGaming]

Agreed. I'm not that familiar with Ramit's method but I would assume optional debt payments are not considered fixed costs. If those loans are federal student loans (and scaling from my own payments) they're probably paying about half or less of that money in required student loan payments and the rest in aggressively overpaying to get rid of them. That's how they managed to pay down $100,000 in debt last year as well.

[@ivanpadilla4479]

I saw you yesterday at your show in NYC. You do a fantastic job at tailoring the recommendations and calling people out on their behaviors. All these CSPs can be dealt with by adjusting within the bounds because of their strong incomes.

[@purplehearts2103]

For the 1st scenario, the couple is spending more on their Yorkie than their own kid LOL

[@MegaMie77]

Thanks you! I was looking for this comment!!

[@librarygyal0589]

Crazy!!

[@owlcat8252]

maybe the high cost is because they just bought the dog

[@crashtestdummy1972]

Sell the dog

[@Subremedy]

​I wouldn't think that would be part of a budget. Usually its things that cost a certain amount per month.​@@owlcat8252

[@sussie9895]

I feel like your CSP should break down debt into student loan, mortgage, car and credit card. Or at least credit card and high interest vs all other debt. These are super interesting, please keep on doing these.

[@AlyssaMartinpage]

Thank you Grandpa Sethi for teaching Ramit about investing at 14. We probably wouldn’t ALL be here without you. ❤

[@codelessunlimited7701]

He is in his early 40s.

[@AlyssaMartinpage]

@@codelessunlimited7701 his father can’t be in his early 40s because *Ramit* is in his early 40s

[@keyboardwarriorcraftymo7326]

She's taking about his dad, aka grandpa sethi

[@hid34way]

when you speak about the older people who reach out to you asking for help it's really eye opening, I would not want to be in such a situation where it's too late to enjoy life when it is actually time to enjoy it stress free

[@Aubatron]

Well that’s the problem, they enjoyed life a little too much in their most productive working years and traded their future for the now.

[@Beautybytracilei]

Saying they enjoyed life too much early on is a dangerous assumption. Not all seniors with low incomes lived it up earlier in life. Some may have just been low earners who never had enough extra to invest in the future. I feel very fortunate to have been able to qualify for a good pension and to invest, but I also understand that not everyone has the same opportunities I’ve had.

[@Aubatron]

@@Beautybytracilei Of course it doesn’t apply to all, just a large percentage. Just watch some more videos from this channel for example, out of hand spending and even when presented with the facts, often straight up refusal to change their life styles.

[@Beautybytracilei]

@@Aubatron I’ve watched most of the videos on this channel and I really appreciate Ramit’s balanced approach to finance. Your original comment just seemed to assume that all seniors who don’t have ample retirement lived it up when they were younger. Just because they didn’t save for retirement doesn’t mean they were living the high life when they were younger. There are so many factors than can interfere with a family’s failure to invest when they are younger. And sometimes, it really does come down to just not knowing what to do. That’s why I think this channel is so valuable.

[@Aubatron]

@@Beautybytracilei My comment took the blatant face value approach, Ramit takes the subtle soft approach. Most people don’t like hearing it how it is, so I understand how you feel.

[@jenlollygag6815]

This is gonna sound weird but my takeaway from this video was how important it is to tie your CSP to your Rich Life so that you have the motivation to stick to your goals and have enough money to spend on what matters to you. And the discipline to divert money away from things you might spend on but you do not truly value. I have also been reminded to have a plan and not operate with money based on fear. I love that this video made me excited about money again and it made financial management seem straightforward once again by tying it to real numbers and percentages as opposed to "feelings"

[@lorischuette1163]

Good for you Jen❤️ That’s precisely how he wants you to handle your money

[@craziinancy1]

Doesn’t sound weird at all!

[@TheEmbrio]

Spending close to 500 bucks a month on a dog and saving 0 toward your child’s education... should have gotten the child a rescue dog. Or a rabbit

[@chrislantzy7759]

All three CSPs include some form of a Rich Life; a fancy dog, a family, a nice car. But can their rich lives be even richer in the future (yes). If your CSP is unbalanced like these three examples, then find the tweaks that will help you achieve a balance, and have a target date when this can be achieved. Plan the work and work the plan, build momentum and feel better (less anxiety) it’s a healthier state of mind than spinning your wheels. Great video Ramit!

[@charthepirate]

RE: The first family. NYC groceries can be expensive, but can also be really cheap. I spend about 1000-1200 on groceries for a family of four. I like to cook, so I'm willing to spend a fair amount . But I do know I could cut down 200-300. NYC can be extremely expensive if you aren't looking at how you are shopping. EG: Often the most grungy ass looking grocery stores are the most expensive. The key is to know where the best deals are for specific things. EG: I have a local store that has great prices on fresh veggies. If i balance this with costco/Trader Joes for package goods and meat, or use some of the cheaper chains (Aldi, shoprite) I could drive things down more.

[@awb19892]

I may be the odd one out, but I budget for *food*, not groceries. I include groceries, meal plans, and takeout (I pretty much never eat out). I only really absorb food into a separate category if I'm on a trip and eating out at expensive restaurants (rare). Even when I go on vacation, I usually don't get anything fancy (I also tend to not eat as much when traveling abroad). In any case, $1200 on food for 4 would feel very tight to me.

[@christianjones5065]

I do the same, but that's a LOT, for 4. I have a family of four and we spend around 650 ​@@awb19892.

[@istvanpraha]

I am from a MCOL area of Queens and spend $1200 on food as a single person. I think my gluten free bread and almond addiction drive costs up but when I did bare bones it was $800 at the cheapest, meaning bananas, potatoes, rice/beans + spices, gluten free pasts + sauce/cheese, Mexican at home, etc. Even cheap things add up to alot after a month. I am sick of people who must be eating kraft mac n cheese and pasta in bulk in middle America from Walmart screaming at me that I spend too much. No, this is just what stuff costs today.

[@charthepirate]

I mean, I could break down the menu for the week for a family of 4 and I'm generally 275-300 groceries and 60 a month for dining out a per person per month. here in a middle class area of brooklyn. shopping at a mix of shoprite, whole foods, trader joes bodegas, costco and local produce markets. Eating out is a one night a week pizza night. Even with a 50% gluten free premium I have trouble seeing how your grocery bill hits that high for basics in NYC. You putting the cocaine on the grocery budget?

[@renata_mulatta]

I shop weekly on Sundays, starting by adding items to my grocery cart on my store's website based on planned recipes, which I then use as a shopping list through the mobile app. This ensures I only purchase what I planned, reducing unplanned spending and food wastage. I prioritize mostly organic foods, searching each item online and sorting them by cost, from lowest to highest, to find affordable options. I cook four dinners a week and creatively use leftovers to make new meals, such as turning ground turkey for tacos on Tuesday into turkey Bolognese with spaghetti on Wednesday. By generally purchasing the same items each time, I stay aware of their costs and any price changes. Additionally, I measure my portions to ensure that I am consuming just one portion, which helps manage both my budget and my waistline.

[@mamalovesthebeach437]

In this episode, you just pinned down what I think my husband feels when he sees a high balance in the checking account. When I show him the Profitable numbers from the money I’ve invested and deposited into savings accounts at 5%+, he still frets that it’s not sitting (earning no interest )in his checking account! 😩🤦‍♀️ love this format Ramit! Would love to hear more CSP’s from older adults who do not own a home.

[@jdeux3677]

Where do you get 5% without monthly deposits requirements?

[@StaciaBielka]

@@jdeux3677 the closest I got is 4.30% on Capital One 360 performance HYSA

[@mamalovesthebeach437]

@@jdeux3677 wealthfront… but I believe the rate has dropped slightly in the last couple weeks. Well frontless been consistent in some of the the highest interest rates for savings accounts.

[@Allfath3r]

@@jdeux3677Wealthfront Cash Account has no deposit/balance requirements. The only fees are if you get a debit card and use an out of network ATM, or if you want to wire money out of the account (as opposed to ACH, which is slower). Their Cash Account is at 5% interest right now.

[@dollgen]

@jdeux3677: You can search the Web for a list of HYSA. There is a popular one maintained by CreditDoctor. Currently interest rates are high so this is acheivable however this will not last and you will have better results with money you are keeping for the long term if you invest in low cost index funds. These are financial securities that allow you to own a fraction of every company with a proportion equal to that of the market as a whole. Most other forms of stock market investing are effectively gambling however and require you to be smarter than the rest of the market as a whole which consistently even the most experienced professionals fail to achieve. Best advice is to have easily accessible money for an emergency in a HYSA earning the current highest interest rates (around 5% now) and invest the rest. Everyone's situation varies however. Additionally current expectations are that interest rates will drop in late 2024 or 2025

[@tropicalplantadventuresina1569]

Student loan payments and interest reactivated last September. I suspect that couple #2 adjusted their budget to pay them down.

[@TheahLil]

Love this format!! Please keep going with this kind of analysis and feedback, helpful illustrations to add to your other, longer form analysis content of couples.

[@ellengold8964]

Will you ever to a CSP or interview w a 60 yr old single woman or only young couples? I think you’re terrific and would love your advice.

[@spf_500]

They would have to apply 🤷🏿‍♀️

[@SqueakyPeeps]

Ramit, my husband and I live in San Diego and have no children. We have been meticulously tracking our food expenses (all food including groceries and eating out) for over 1 year. We shop at Aldi and Walmart and make a strict menu of our meals for the week. We tried and tried, but can never get the expense lower than $1100 for the month. We don't buy/eat beef or pork, nor organic produce, and we plan 6 dinners with enough left over to have lunch the next day. We both work from home too, so there is no need to eat out for lunch. When we do eat out (2x per month) it's about $75 each outing or less.

[@jml9550]

Yeah grocery is getting quite expensive. SF Bay Area here, family of 4 with 2 teenagers, imagine that. 😊 thankfully my home and rentals are all paid off with no debt whatsoever. Still making a decent tech income……..we do eat out 2 times a week, but try to keep the check down to $100 per outing……..it is nothing fancy but really just family time…

[@Michelle-bw1xg]

Great you have been tracking food expenses, shopping at modest stores, and food prepping with leftovers. I'm in the bay area on 1 modest income so I get it, (no Aldi here). There are a lot of YT resources out there that can offer additional ideas that resonate with you. Perhaps some fresh insights/perspectives can lower the cost so more $ is available to save or use in another way you value. Even here I can often stay within $300/mo (and I don't fast, am not vegetarian, lol). I aim to learn more simple but tasty meals and having less dishes as I commute far and dinner or most of the components made is a real help when I'm tired.

[@jml9550]

Yeah commuting far and having to cook are no easy task, it takes a toll on your body physically and mentally. Fortunately my wife has always been a stay at home mom. I don’t have to worry about making dinner and kids’ schedules or activities. Now My 2 teenagers are self sufficient with one driving. Younger one will drive in about 2 years. It will get easier

[@japanesecinema6736]

Its crazy the amount of money people make and they cant figure out how to budget...

[@oluade1807]

I was great at budgeting when I made $70k less than I make now. Mo money mo problems!

[@JerfCycles]

@@oluade1807more money different problems

[@dbased1915]

lifestyle creep. back in 2021 i made 5 times my normal income due to capital gains income, and found myself spending like a mad man. traveling, eating out, buying dumb stuff, a new car, etc. tax season 2022 hit hard and i cut back to being relatively cheap

[@james1000]

People are good at spending everything that they make. For those I’ve talked to it’s either too much house, expensive cars, huge daycare or private school costs or a lot of travel. But rarely is investing a priority. Hence the reason most don’t become wealthy

[@palmtree-e2l]

@@james1000 You are right and you are describing us. Suddenly got well paid jobs and spent like crazy on all the things you mention except cars and daycare but including hugely expensive holidays. The strange this is though is that I don't regret it. The holidays were worth every penny for the quality time with family. However we are now saving very hard and watch our spending much more carefully and it's amazing how much you can save when you put your mind to it and make it a priority.

[@Hold_on_now_playa]

Daycare is the killer. My wife and I was just talking about we idk how we got through with 2 kids in daycare at the same time. My son is done in June, it will seriously feel like we paid off a house. 😂

[@Renee_egan]

100% day care IS deadly! But im skeptical af on the figures couple 1 provided, case in point the amount they disclosed for their child care in NEW YORK 🤔🧐

[@Magdalena287]

Daycares are dangerous for children mentally and physically they should not be going in the first place

[@blessmeachoo6]

@@Renee_eganthey might have relatives filling in the gap most of the time

[@ScoopDevers]

​@@Magdalena287 That is certainly not true and not feasible for a lot of parents. My child loves seeing her friends and teachers. Maybe it's dangerous if you don't do your homework and send your kid to a terrible place. Plenty of wonderful daycares that will take great care of your child while you go make a living.

[@CSpottsGaming]

​@@Renee_eganThey make decent money and childcare isn't a super rare benefit for New York jobs (banks, for instance, sometimes offer childcare credits or even an in-house care facility for employees who have children).

[@vh2712]

Ramit, i just found out about you a few months ago because I wanted to make a drastic change in my life for the better when it comes to finances. I had just received your book and will get into reading it. Ive watched your video every day as well. Thanks for providing all of these knowledges and keep the videos coming.

[@ForgeofSouls]

I try and talk finances with people often (I read the room, if people don't want to, I dont force it). I have found that most people will benefit from a 10 minute conversation on basic finances compared to the deeper levels that it can lead into. In the end, simple everyday behaviors are what I believe make or break your financial health. If you can't be consistent than you will struggle. It sucks when you meet people that further along in age and have much less capability in fixing their circumstances.

[@albshel]

Two takeaways: One - Daycare costs in this country are about as effective a method of birth control as exists (at least for me). Two - Seeing people spend four figures a month on groceries puts my monthly food spending in perspective. It's less than that, but it could still be lower given my situation.

[@marlonorantes8137]

This video couldn’t come at a better time. I just sold a business that was killing my finances and I had a lot of debt! I now paid off the debt and I’m petrified that I will just rack up credit card debt again. I will fill out your CSP! I read your book a few months ago and I didn’t put anything into practice. I felt lost with all the debt I had. This is my new shot to do things right! Thank you!!!

[@lookforward2life]

How is it going? Well I hope!! 🤞🏼

[@thewriteplaceforme6874]

Love this content!! (Esp. after this week's challenging podcast couple) I'm scared to fill out the CSP. I don't want to see 80-90% in fixed costs. The closest I came was to download all of the bank/credit card transactions for last year (I don't use much cash and do a monthly scan of my transactions). Where I tend to get stuck is taxes for my side business (more than what I make at my office job). I'm an expat, so I pay local income tax and a local version of social security tax plus US social security on my income as business because I'm a US citizen. I've checked; there's no agreement between the countries to pay in only one of the countries. So tax time comes around and boom - US taxes, local taxes, two accountants, property tax for the year, back taxes (even though I was paying monthly), and then I decide to get my act together and prepay more this year. So I very much understand the money scarcity mindset of the 3rd CSP. If I didn't have liquid assets to pay my taxes, I would not feel better by having money locked in an investment account with giant penalties for early withdrawals. So my plan of action is to clear up the taxes, prepay in the US as well as locally, open a local investment (which again locks up the money) that releases at tax time, and I've confirmed that I can use US money to open a Vanguard account with no tax issue locally. The reason I keep my office job is to they match+ the max going into my retirement and education investments. And paid vacation+sick days. I work only 16 hours a week there, so I can focus on my own business. (Not quite to passive income or opening an S-Corp to avoid the social security double payment.) The podcast is like my weekly inspiration check-in to keep myself moving forward. And now this excellent content. Thanks, Ramit!

[@IAmebAdger]

Just fill it out! The worst that can happen is that your fear comes true and you see 90% fixed costs. Then you'll be kicking yourself that you didn't do it earlier so you can analyse how and where to reduce. The longer you wait the more you will kick yourself when it happens!

[@BuiltonGODSrock]

Not knowing is worse than knowing no matter the severity. If u cant seem to control your spending try using cash and doing a zero based budget so u have no excuse for over spending 😅

[@ILovePlants33]

I agree- every single video of his reminds me to spend on what I love and not waste money on crap that doesn't matter. It's so helpful for my monthly spending!

[@PurpleNGold824]

Any given Month I can survive on beans, rice & chicken. That’s about $80-120 a month. I’ll mix in sandwiches, bean and cheese burritos, and a couple $5 salads just to mix things up. I currently make 75k and have a net worth of about 230k most of it invested in 401 and S&P. Anyone can do it.

[@StinkyBinky24]

Anything you splurge on? For me was fitness classes ($160/month) till I moved too far away

[@PurpleNGold824]

@@StinkyBinky24 I would say travel. I do about 4 trips per year but try to include people to bring the cost down and enjoy company. All trips are domestic.

[@PurpleNGold824]

@@JaNouWatIkVind I get that. But as long as ur cooking at home. You’re fine. I get a little crazy with my grocery spending at times.

[@Monkofthecaribbean]

@@JaNouWatIkVindTell the teens to suck it up

[@loliwelch9151]

Interesting: do you track any food macros? (Protein, fiber, etc?)

[@CAROTA251270]

I love this kind of video. Please make it more like this. I am applying all these lessons to lower my fixed cost. Thanks, Ramitt!!

[@LovingGodLivingLife]

Love this format, and the no-nonsense advice you give to help everyone's financial situations. If I may make a suggestion, fixed costs should be changed to necessities with debt repayments being just the minimum payments required, and things like (new) clothes & subscriptions should go under guilt-free spending as they're not necessities... then EXTRA debt payments could go under the savings / investments as they're essentially saving money by not earning interest they have to pay (dependant on rates).

[@destinyschild5768]

I agree but I think the reason he includes those things in fixed expenses is due to the fact that subscriptions are charged monthly and things like Netflix and Hulu overtime becomes a necessity to people and usually hard to cancel even if people are struggling with money. I think guilt free spending in this context means one off expenses or variable expenses month-to-month

[@willianvasconcelos9891]

Glad to see videos like this, where you see a realistic approach on how to balance your finances and keep living with dignity.

[@jdp486]

Here's where a little bit of background is helpful: for the first family, 3 unlimited MetroCards cost $400 per month. Add in 1or 2 Uber rides, and $500 is totally reasonable.

[@IAmebAdger]

Good idea. Scratches the curiosity itch, isn't as long a commitment to watch as the podcasts and is educational. Diminishing returns if it's too frequent, but when spaced out is really good content.

[@Joce123]

Crazy to think that all of us want take care of grandchildren ..My kids are furious if I do not take care of each one of my children's babies. It is not possible

[@staceybulleigh8408]

Your video editor is stellar

[@carmelmcdonagh1027]

Love this set up. Lots of info, presented simply. Love the change up and variety.

[@4444care]

This is my fav series! Thanks for sharing

[@JamieRedlands]

Love these. Keep them coming. Especially single people! There are lots of us having to manage on one income in a high cost of living area.

[@jilliangeorge7298]

Thank you for doing a single person's finance review. Everything is so expensive on one income. I was also hoping to buy a house soon, but after this review, I see I need more time as well.

[@jaynez9027]

Omg I am the second couple! I love this example. We pay $2400 for mortgage and $2520 for daycare. We’re lucky our debt payments are not nearly that much but it’s still not great.

[@brianparsons6203]

Exactly the same here. Our 15 year mortgage is cheaper than daycare.

[@jaynez9027]

@@brianparsons6203 people tell me it won’t get better when they’re in school with activities and any after school or summer care. I refuse the believe that 🤣. There’s no way it’ll ever be THIS expensive again. (And of course when they were smaller it was even more!)

[@StayPuft209]

That’s insane! As someone with 2 little ones I can’t imagine paying that much. My wife and I are fortunate that we have both our mother’s help and pay 0 for daycare.

[@Rosemari753]

I'm pretty sure their debt payments are high by choice, they are trying to pay it off aggressively. I'm paying that exact amount for my student loans every month to knock them out in a year.But I could always reduce that amount if I wanted or needed to.

[@brianparsons6203]

@@StayPuft209 great to have that amount of help! Make sure to get your mom and MIL some flowers for mother's day haha. My oldest starts school next August so that will save us $1000 a month.

[@larryisntmynamebutyoucanca9625]

I am actually very comfortable talking finances with my coworkers and friends. Ive built a budget spreadsheet and shared it with several friends to help them keep better track of where their finances are going!

[@charletfoster8917]

Pls continue reviewing subscribers’ finances, I enjoy these videos👍🏿

[@tomaszp2027]

The video we needed and deserved. Thanks Ramit!

[@juliafarino2823]

Love this 3 scenario style video! Super helpful! Thanks Ramit!! 🙏🏽👑

[@kaylighboo1987]

I had to go through paying off 30k in CC debt because I was never taught about them or interest rate or budgeting. That was a huge wake up call I changed all my spending habits and now I have 40k in a HYSA.

[@saynay333]

I love this video style. Hopefully we'll see more of these.

[@ginarivera1881]

The childcare issue is something we connect with. We live in NYC and childcare is an enormous percentage of our take home. And with two working parents who work different hours, meal prep is nonexistent which increases take out or ready made meals.

[@jimnam4444]

Cook for 3 alternative days on the weekend.

[@ThePragmatist839]

@@jimnam4444 no freezer and small fridge probably.

[@jimnam4444]

@ThePragmatist839 or may be lazyyyyyy!!!

[@samushunter0048]

My biggest takeaway is in certain instances I fit some of these situations with the amount of expenses I incur with subscriptions and not bolstering my savings account for emergency funds.

[@danmeck5978]

Since i stopped putting all my spare cash towards debt and started splitting it between debt and savings, I feel so much secure and happier within myself. If everything go towards debt you are 1 paycheck away from financial disaster.

[@mwedzi]

"omg, he's part of my family, I let the dog lick the food out of my mouth", lol. I laughed heartily. Here is one thing I've never understood about the CSP. It seems to have a much greater focus on post-tax investing than pre-tax investing. There's a special line item for post-tax investing, but we're left to infer what might be happening in pre-tax retirement savings based on assets and the difference between net and gross. Is there a reason for this? Now that our emergency fund is established, the great majority of our savings is pre-tax, and when I'm considering what to do with 'extra' that I don't want to spend for fun, I usually opt to increase pre-tax rather than post-tax investing.

[@bluexroses414]

If you can contribute post-tax to a Roth IRA, that serves you better in the long run because you don't pay taxes on the the money you take out in retirement. Pre-tax investing can save you a little in taxes right now, but with a Roth you pay tax now, but don't pay taxes on any of the growth later (which should be a lot more)

[@mwedzi]

@@bluexroses414 I always thought if you expect to have higher income during retirement, you contribute to Roth. While if you think you are in a higher tax bracket now than you will be when you retire, you choose traditional. On neither do you pay taxes on the growth like you would for regular brokerage. Just with traditional, you pay taxes when you withdraw it as if it was your income.

[@bluexroses414]

@@mwedzi Sure that's a calculation you can make, but that's more for a specific situation. I feel like the pre-tax savings are only meaningful for a small sliver of people making a high income but one that's still low enough to qualify for a Roth

[@EcomCarl]

your deep dive into the finances of these couples truly highlights the power of transparency in financial planning. For anyone looking to optimize their budget, consider reviewing the fixed expenses periodically; small adjustments can lead to significant savings over time, especially in categories like groceries and discretionary spending. 💡

[@RaspberryRetrograde]

14.5k down to 8.7k oof those new york taxes are rough

[@AngelStormee]

Even in the scenarios that don’t fit my life, I got little tidbits of truth I need to reinforce in my mind. Thank you!! ❤❤ I like your style of presentation and will definitely look into your resources. ❤🎉

[@uchewb3]

Ramit misunderstood the 2nd CSP by blatantly ignoring their question about paying off debt over saving. The way they have 20k saved is bc they used to save a lot more and stopped to aggressively pay off debt, ie their huge debt payment in their fixed costs.

[@Bertuzz84]

I think that these forms don't really give enough info and context on their own. He probably needs a more detailed form, and to ask these questions before making this video.

[@IAmebAdger]

If all this is how they meant it in their CSP, then honestly, it wouldn't be that hard for the couple to just provide that extra clarification in the blank space to the right of the CSP.

[@margie5310]

Yes! To me they are clearly intentionally way overpaying on debt to get rid of it. I do wish the couple made it more clear to Ramit what was the minimum payment and what they were doing as overpayments. It’s true that there simply isn’t enough context for him to say whether they should continue with the overpayments or not.

[@lindaanderson1016]

QUALITY HEALTHFUL 😢GROCERIES :On a low income, as a bargain shoppers, we spend hundreds on food: salmon, berries, pasture raised eggs , etc. It is essential to not spend this on medicines. We enjoy spending on food we enjoy and keeps us well.

[@La_sagne]

you can cut out berries for a while.. they dont really give you any meaningful nutrition... less stress because you have more money left over will do much more against inflamation than berries will

[@pioneer7777777]

Please! Debt should be broken down by type and interest rate, as well as term. Just putting $90k of debt without explanation pretty much blows up all analytics since it could be 50k car loan and 40k credit card debt.

[@kjstrohs11]

Why does the CSP only look at post-tax investments? Some of these people could just be allotting investments to maxing out 401k/RothIRA/wtc, no?

[@amazeedayzee]

roth iras are post tax

[@vamieses]

I was thinking the same thing! But my guess is that they would have noted that in the income section.

[@lisah5836]

The first example with the pet, it's hard to tell. It could include pet insurance, vet bills, pet food, a dog-sitter or a dog walker, toys, medicine etc. or they've added it to groceries, who knows? The costs for my own pet included special food, ongoing prescription medication due to age, litter, more frequent vet visits because of the medication etc. Toys weren't in the picture, but it was at least $100 a month on essentials for my pets health. I personally find it helps to break down the csp a bit more....like I used to include all food as part of groceries, but the reality was I was doing a lot of takeaways and little groceries during a busy time. So I had to break it apart into separate categories to keep myself accountable.

[@whitneywillie4471]

Yes pet stuff adds up quick. Depending on the dog. One of mine I pay $100 every 6 weeks to have her groomed. It’s a must and not easily cut out.

[@ChristyMurphyWriter]

I love these. My only wish is that interest rates and terms were included with the information on the debt (or even just the type of debt). I love that a single person was highlighted in this video as well! Regardless, these types of videos are among my favorites on this channel.

[@Kelly-ry8es]

I thought you calculate your percent on housing using your net income, not your gross. I was aiming for 25% of net income (we are at 23%), but if its gross we are only at like 16%. We also pay about $1400 a month on daycare on average.

[@i-am-me-]

👀 when he rants on your problem

[@samanthaheins7711]

We have a 5 year old (after school care) and a 2 year old. Childcare costs 2.4K/month. I’ve always made more than our daycare costs per month but even if it zeroed out, I would still work. One, I enjoy working. Two, leaving the workforce for 8ish years would destroy my earning potential long term. Three, I can still save for retirement. And finally four, it doesn’t make me beholden to my partner should our marriage ultimately fail. I don’t foresee the last one happening but I don’t think most people marry and have kids thinking they’ll be doing it alone one day.

[@nicolebakirtjy5613]

To be fair, the breed of dog someone owns actually has a huge impact on their finances so the first couple owning a yorkie is very relevant information. The bigger the dog, the more you spend on food, beds, toys, vet care, grooming, etc. If you have a breed that needs grooming like a poodle or yorkie that adds hundreds in grooming costs every month. And unhealthy breeds like French Bulldogs can cost thousands in surgeries to fix common birth defects not to mention pet insurance costs way more for frenchies than a healthier breed. What dog you pick has a HUGE impact on your spending.

[@staciii]

This is absolutely correct. I have a Yorkie but $500 a month on a Yorkie is crazy. I'm assuming it's not the same amount every month and it's vet bills for a new puppy

[@antoanetamanko7457]

I love the format, but I am a bit confused about the definition of fixed cost. IMHO, debt overpayment, groceries, miscellaneous spend shouldn’t be considered part of “fixed” cost since you can always scale back if you need to. Also, not clear if this budget considers pre-tax investments as part of the % of income invested?

[@rebvanwinkelstein2578]

Some kind of groceries are fixcosts . Zero isn t possible unless you live on a farm 🤷🏻‍♀️🙂

[@quelthos0122]

Debt overpayment shouldn't be part of it, only minimum payments. Debt overpayment could be another line item in the savings category. Minimum groceries to live on should be part of fixed costs, you can't just stop eating. Dining out and indulgent grocery shopping shouldn't be. Miscellaneous spend is for folks who don't know their numbers front and back - I don't use that category because I know where all of my dollars go every month. As far as investments, I prefer to list my net income as what comes in after taxes and medical premiums, then I put my pre-tax 401k and HSA contributions in the investing category.

[@monicamolina4185]

Thank you for sharing this! It gave me an idea of where I stand with my finances. I am a single mom as well! But I do invest 30% of my income (work 401k, Roth IRA, brokerage, custodial brokerage, etc) my paycheck is automatically moved to other buckets that I only end up with enough cash to pay the bills and some extra for leisure. I love it since I believe that if I don't see the cash sitting in my checking it is easier to adjust my living expenses to what I have. I recently adjusted my investments for a short term so I can pay off my student loan. Once that is paid off, that cash will be going back to investments

[@1892Genesis]

I really enjoyed this video, shorter then the usual and we got to see a few different people

[@Ninadion27]

I love this CSP Analysis 🙌🏽

[@karencarter7307]

Love this content! Keep doing these please 🙏

[@jor2754]

Talking with your kids about saving and money - great advice! Thanks for that!

[@felipegarzon6467]

Love this, so useful! Please make one from people that live in Miami! ☀️

[@howtoapplytocollege5804]

Yes! So expensive here in SFL 🥲 lol

[@dec1slh]

How do we get your team to look at our CSP?

[@sasukesuite1]

bump

[@bryantkobe23]

Good for my self esteem seeing these csp

[@sue1703]

I really like seeing the real numbers of other people. It is very helpful! Thank u! :)

[@oddballchic]

Biggest take away for me is to keep fixed costs under control.

[@moca8405]

My mom kept telling me since I was a little girl that my future husband and I should never depend on my income because there was no guarantee for ladies to be able to keep a job after having a baby. And it was true. First off, I came to the US 15 years ago after marrying my husband, so having a job was extremely hard. After having a baby, I really couldn't do anything for a few months. Also, it didn't make sense for me to work if we had to use a daycare. So, we've been treating my very small income as a bonus, and we only allocate this money to investments, savings, and occasionally as an emergency fund.

[@ebullock1000]

When we set up our CSP- we learned we had over $400 in subscriptions!!!! It was mind blowing. We cut ALL subscriptions and don’t miss them two months later.

[@StinkyBinky24]

Woah! Curious on what the highest subscription was?

[@ebullock1000]

@@StinkyBinky24 it was death by 1,000 paper cuts…. Kitty litter subscription, coffee subscription, music lessons, patreon, HBO and other streaming, Audible. I forgot- the one kept was Spotify because it’s worth the $14 for our house hold. I think the most expensive was almost $30… it was SHOCKING when we finally wrote it all down.

[@ebullock1000]

@@StinkyBinky24 idk if my response posted! The most expensive was a kitty litter sub that had slowly creeped to $27. It was death by 1000 paper cuts…

[@melinated2497]

The second couple's daycare bill made my eyes water because it is only a little more than what my husband and I pay for our 2 daughters

[@MikeyDVC]

Ramit, we need a video on your weekly grocery shopping! 😝 😂

[@AdamGbl95]

I love the idea of percentages for budgeting because the number increases and decrease with income. For most debt it's best to consolidate. There are companies out there that will take on negotiating your debt for you abd let you pay a small monthly payment as they go to work on settling in the bacnground, and you can find some very low cost programs. Or, depending on the debt and how broke you are, stop paying on it, let it sit a while untik theyre begging you to pay something after it's been sold off a few times then offer them something.

[@johnmatrix4305]

$500 a month for pets implies grooming or care services. Our dog we spend about $75/month on food and $1500/year on boarding, $600/year on veterinary.

[@joycef8443]

We have three dogs. This year’s budget is $4200/ yr total for all three; that includes vet, grooming, special food. We have tracked all income and expenses for the past 25 years so I am confident this is what we will spend.

[@TopShot501st]

Dog daycare/sitter if you both work will add up to thousands in a year. I spend probably $3k a year putting my dog in daycare . Because I work in office now and she's a 2 year old with ∞ energy.

[@nickthequick]

Grooming what? We never sent our dogs to grooming when we had those, we washed and brushed them ourselves.

[@sspann]

Wifec and I have 4 rescue cats. We have to budget $250/mo for food, and $3k/yr for vet visits, meds, and dental cleanings. We love them to death, but will NOT be replacing them when they pass😅

[@TopShot501st]

@@nickthequick some breeds need to be trimmed semi regularly, not just brushed and washed.

[@christianthomas7238]

@ timestamp 15:54: This is so important and so ture! First time I hear that so clearly distiguished! You always want to keep both payments flowing!

[@MindsetMoney2]

Thank you for this video! I found you in 2023 and I have a greater understanding of my future finances since utilizing your CSP. Keep up the good work!

[@destinationrelaxation9768]

I really enjoyed this breakdown. It motivated me to sit down and look at my finances more deeply!

[@ladyoftheflowers44]

I love watching these, I’m curious how the NYC family could spend less on groceries. $1200 for 3 people is $13 a day on food, in NYC you can easily spend $113 on food in a day as a single person so $13 a day already seems pretty lean Geography makes a big difference how affordable high quality groceries and rent are

[@ladyoftheflowers44]

I would come for the $500 on car payment and $500 on insurance Why are they spending $1000 a month to own a car in NYC?

[@ze_ep]

@@ladyoftheflowers44 Could be metro and health insurance, not necessarily car.

[@fitz7670]

Thank you for this video! I just discovered your content! My wife & I are just now figuring out that we need to figure some stuff out! Had a baby, bought a house, & a car I 2023! Working 2 jobs for a year now & haven't made any headway! We are going to try the cash envelope system but don't know how to make the initial transition 😢! So difficult!

[@BrayanHernandez-dk7fb]

Thank you for doing this so concrete

[@mavricxx]

To that last single mother who dreams of buying a home is put thos checking savings into a High Yiled Savings Acct, rather than that checking acct. That way you are building way more interest which will help you in the l9ng run to get there quicker. Not saying that will speed it up a huge amount but with those $19k in a HYS acct will accumulate about $60mo vs a penny per mo. Trust me, it adss up! Do not give up your dream, keep at it. Also, invest in an ETF, that will help you substantially as well and you can use that money if you need it in a pinch as well for an emergency. Look up videos on ETF and how to invest in them.