12 Simple Money Ratios To Overcome Analysis Paralysis

[@Quroe_]

I am going to watch this video throughout my lifetime as a point of reference.

[@jonr6680]

So am I, but at 0.75 playback speed!

[@ryanl3812]

I personally flip the 30 and 20 in my 50/30/20 rule. 30% cash saved right off the bat after 401k and HSA contributions. 20% for frivolous spending

[@debbiecurrlin335]

Great content, thank you! 😊

[@quickjoy3461]

Love this. Your channel is so awesome. Thank you so much

[@sctt5071]

Tae, I’ve been binge watching your videos all weekend long. Can’t get enough. I am an entrepreneur and own several companies. I’m looking for a good accountant. Would you have one you can recommend? I’m in SoCal.

[@BeardedCarBuddy]

This is a wildly helpful basic guide. Thank you Tae!

[@KNuzX]

very helpful tips. much thanks learnt a lot!

[@GC0182]

Thanks!

[@DeborahAOwach]

Greetings Kim . Your content money ratios was so simple and well done... lol it. Am in the heart of Africa. Possible guidancel on how I can invest in Vanguard from here... Appreciate the response. Thanks

[@sandylamba2546]

Great video!

[@mattbenz99]

The 0.1% rule really depends on what options exist in your country. For example, in Canada, VEQT (Canadian VT) has an expense ratio of 0.24%. So the goal should be to keep it as low as possible, but keep in mind where you live.

[@peterl2767]

Great content 👌 👏 👍

[@FOR3RUNN3RS]

For number 5. When you say the portfolio was still intact, do you mean that at the end of 30 years it would still be valued at around $1,000,000 dollars? Thanks!

[@ddyoder]

Me missing the original Raccoon drop may now be a fortunate situation… I’m tempted now to wait for crossbar lock variant release

[@georgesargiss6730]

Where is best place to shop for best rates for term life insurance ?

[@joenirenberg7853]

For the: Age x Income ÷10 formula should your vehicles be included when they have next to nothing to do with retirement savings? You don't mention it but networks calculations generally include vehicles. Just a question I had. Thanks for the great info.

[@nileshpatil8732]

Home price = 3x income. Is this meant without home mortgage or with home mortgage?

[@livingunashamed4869]

So a million dollar home should make you 120k a year? I need to rethink my portfolio lol.

[@zwieback1988]

3 x Income as a house price would mean in Germany: As a Senior Engine Developer you could afford a 1 room appartment 😅

[@70qq]

this is a great video overall and i love your content ...but any time i hear prices based on a percentage of income , i immediately think its flawed , unless you are lower income family... in which case it makes sense usually...but a family with a 200k income should not be spending double what a family with a 100k income spends on housing , entertainment , or anything else for that matter in my opinion ...dont raise your standard of living every time you get a pay raise , unless you want to stay stuck working until age 65 ...20% of income saved for retirement if you make 200k simply means youll work as long as people making half of what you do , unless in retirement you decide to suddenly change your lifestyle drasticly ...which most people do not wanna do ...make 200k and put 100k into retirement , still live better than the family making 100k doing the 50/30/20 budget and retire 5 times faster ...or at least reach coast-FI quickly and forget the budget because your retirement is fully funded

[@nicolereyes9632]

About the life insurance. So my mom is fully retired and trying to apply for SSI. They considered her life insurance to be income how is that? she was denied due to it.

[@Aenion11]

Question: Do you keep your emergency fund in a standard savings account or would you invest them in a bond ETF?

[@davidortega8817]

i’ve always heard them say to keep an emergency fund in a savings account. they are more liquid and accessible compared to investing it.

[@Aenion11]

​@@davidortega8817 I've also heard that you don't really need an emergency fund and you should always make sure your idle money is working for you. I'm European so I don't need to keep the fund for medical expenses. When you get laid off you get to keep working for another 3 months or more, followed by a 3 month severance. So emergency fund is already built in. Because of this I've been wondering if it wasn't better to put the larger part of my emergency fund into a bond ETF for low volatility but higher gains than the .6% I get from my savings account.

[@davidortega8817]

it’s just the privilege of having the funds ready within the shortest amount of time, if it’s invested it could take days to withdraw. while it may be true that a job loss comes with pay and medical bills are somewhat nonexistent in europe, i think they are talking about other things. such as stuff breaking down like a car or hvac system. stuff that you need a bit of money to fix and you need the money fast. having your idle money work for you is a good idea, but a high yield savings account is probably a better idea. i’ve seen some with pretty decent APY’s like around 5%

[@walkerrodgers557]

The main reason I never keep my emergency funds in savings is if your Brokerage doesn't do after or premarket trading you're stuck to paying for your emergencies 930-4 M-F

[@KyleHong]

@@Aenion11 Most if not all of what Tae says is catered towards US citizens. Things like severance is a privilege that majority of Americans do not have unless if one worked at a so-and-so company for “decades” or one worked at a generous big tech company. To top it all off, most firings/layoffs are sudden. Unfortunately, I can’t give any advice on where you should put your money.

[@christiandavis5014]

How is the 4% rule impacted by RMD?

[@Luckyboyee777]

The challenge is that company selected 401k administrators charge more than 0.1% themselves. Like 0.5% already.

[@GG-tg5ub]

Unless you live in a major city like New York. In which case, 50% of your income will go towards housing alone.

[@brucestiles6477]

Correct: Life insurance is a risk management tool, not an investment, in the same way that a fire extinguisher is a risk management tool, not decor for your home. Instead of 20-year term, I would suggest that one make sure that the need for the life insurance has passed before the insurance lapses, or perhaps up to the point of retirement. You could pass away at Age 50, and not yet have saved enough money to put your children through college. I focus more on 30-year convertible term. Unless you have a prior contract, you do not have a right to buy life insurance -- you must prove that you are healthy enough. You could buy 20-year term and a year later not be able to buy life insurance again. Thirty years is the longest term policy that I have seen. Also, "convertible" term means that *you* have the right (but not the obligation) to convert the policy into permanent insurance. It wouldn't be fun to have to do that, but at least you would have the option, and convertible term insurance does not cost much more that regular term insurance.

[@willerwin3201]

*"The average American saves less than 5% of their income"* Yay, I'm aweso -- *" -- If you can maintain a 20% savings rate towards your retirement throughout your working career, you should be set up nicely for retirement.* Well, nuts; it's hard to have 20% of all income go towards retirement over my entire career when I've had to save up to buy a house and send five kids to college. Maybe I should -- *" -- In the financial independence world, the golden savings rate target is usually 50%.* Holy crap.

[@ellenoir5678]

❤

[@hitenpokar163]

Rule 72.....wow

[@SiempreFlor]

Hahah you use Pocahontas book? Hahaaaa😂

[@dietbajablast5790]

Do you have any credentials justifying you giving out financial advice?

[@Luckyboyee777]

He has a disclaimer that this is not financial advice. Everyone on youtube says that. Haha

[@alexandrostsagaris8606]

I like your videos. But I was a bit disappointed when you referenced financial advice from Elizabeth Warren…

[@doug2731]

Referencing ELIZABETH WARREN for financial wisdom is like referencing a sumo wrestler for healthy diet tips. Are you *trying* to lose credibility? 🤦‍♂️

[@templarking6819]

I am ignorant please enlighten me on her?

[@WilliamBati]

Doug, have you read her book? I did and liked it very much. Please separate the politician from the author. I'm sure I could trust you in your profession even if I don't agree with you politically. . Templar, Elizabeth Warren is a democrat US senator and former Harvard law professor before being a senator. Doug seems to be judging her on her ideology and not on her knowledge or approach. . She wrote a book with her daughter called "All your Worth". I read it 15 years ago and thought it was OK. Read the book and make up your own conclusion.

[@BigNoseDog]

Notice how Doug doesn’t actually address the 50/30/20 rule, but instead criticizes Warren. Sounds like someone can’t let their political views cloud their thinking.

[@BigNoseDog]

@@WilliamBati I read the book and highly recommend it. No, you won’t get rich following her advice. That’s not what her book is for. It’s aimed at people who just want simple straightforward advice on how to live within their means, save for the future, and still be able to enjoy life. Doug didn’t offer an alternative or question any of the components of the formula. He just expressed his political views. By not refuting Warren’s formula, he effectively endorsed it.

[@diotitus]

I have to apologize man, but while I do possess a similar political view as you on Elizabeth Warren, Tae is talking about the 50/30/20 budget in regards to the management of money and personal finance, not politics. While I did not know that she is the person that invented that guideline, it seems very valid and realistic in relation to the real world. I don't agree with her political stances on things, but I do like the financial ideas proposed.