The New Benchmark for Financial Success?!?! What It Means to 'Make It'

[@ljosephdumas3113]

"I feel financially comfortable because I live below my means." BINGO!

[@dlg5485]

Of course, it's never as simple as that. What if your "means" are only $35k per year? You'll have a pretty hard time staying below that spending level in order to get ahead. In order to live below one's means requires a certain minimum income that not everyone can achieve.

[@rarelycares8416]

@@dlg5485 Doesn't matter what your means are...if you live below it you are ahead of over 75% of the population. I is easier to increase your means than it is to reduce your expenses once you've started spending. I started out with nothing and made near minimum wage for the first 8 years...but I lived very cheap and still managed to save $50k in my 401k by age 28. As my income increased I saved higher and higher percentages and retired last year at 55.

[@Stupid9808]

@@dlg5485 Ramen is still 25 cents.

[@Noneofyourdambusssiness]

That!! Being financially informed and having no debt.

[@Shadow_Banned_Conservative]

@@dlg5485 It's going to sound cold hearted, but you really need to think of a life of earning a lot more than 35k a year, and doing everything you can to level-up.

[@philipdefrancisco7540]

At age 67, I am free of the worry of losing my job!!!!!!!!!!!! I live below my means and I am perfectly content. Feeling content and relaxed is the goal for me.

[@Draggonny]

That's my goal too. I'm knuckling down to build retirement savings. I'm comfortable now while I'm working full time but I don't want to do this forever. I may run a hobby business for spending money in retirement but I want my bills covered with enough buffer to allow for inflation. I've got 27-28 years to reach my retirement goals.

[@dustinquinton]

Debt free is being financially successful.

[@dr_flunks]

i've seen a lot of friends get rich on opm but i agree it's scary.

[@meibing4912]

Debt free has to be the most failed financial goal unless its high interest debt. Housing loans should never be paid out. Debt is tax free. And your money sits a lot better in your pocket than in your bank's vault.

[@dr_flunks]

@@meibing4912 debt is not free if the required cash outlay could have resulted in a more attractive npv return given some other investment. you could argue though that the inflation that is likely to happen will cover the cost of the interest respective to other investments. there are no nevers in spectrums.

[@Draggonny]

​@@meibing4912I'm looking forward to having paid off my mortgage so I have more income going into my retirement fund. I'm not even half way there yet.

[@wernerfoerster3666]

@@meibing4912 LOL

[@yhckelly]

Any group of people that says they need to clear 50k a month to be financially successful has not put any thought into the question at all.

[@fdm2155]

Sounds like a panic response.

[@marram2852]

Or, they are so undisciplined, they can't say "no" to anything.

[@fdm2155]

@@marram2852 Even if what the mean is "I want to buy everything I see without worry", $50k per MONTH, is a lot of money to spend. It's not like you're buying a car every month. 😄

[@eddiemalvin]

To be fair, that was the response of the youngest generation with the least amount of real-world experience and facing the most uncertainty about retirement. They simply have a different definition of "financially successful" than you. Don't take it personally. It's not like they're saying people who make less than $600k are "failures".

[@eddiemalvin]

​@@marram2852 Perhaps being "financially successful" means they don't have to say "no".

[@Eric-wc7lx]

The “4% rule” is very sobering. There are many households bringing in over $100k in the US, but not many with the net worth to maintain that same lifestyle in retirement - especially if Social Security is compromised. I tell my children often that they shouldn’t think of the money in the IRA as a lump sum, but as the 4% rule income stream that it can generate.

[@JBoy340a]

You should also remind your children that SS was never designed to provide their entire retirement funds. At best it is to provide 25%-28% of the funds they need in retirement. The rest needs to come from their savings and investments. Younger people have the advantage of years of compound interest. But only if they invest early and often.

[@Shadow_Banned_Conservative]

@@JBoy340a The other problem comes from an unsustainable system. Those with means are going to have the "benefit" that they paid into for a lifetime, cut based on their investment income in retirement. That's coming in the future, it's unavoidable.

[@JBoy340a]

@@Shadow_Banned_Conservative I sure hope not. We have worked hard, saved, and invested for a long time. I hope they do not cut our SS payments because of that hard work.

[@Shadow_Banned_Conservative]

@@JBoy340a I hope not either, but I really don't see how we don't wind up on that route with support from the public FOR it. We're going to be punished for our forward thinking and sacrifice to build our retirement wealth. So many people don't have anything saved and they're blaming us for it. They're all for taking from us, as much as they can take. If it comes down to you getting a monthly 5k income from your investments in retirement and another 3k from SS, and someone getting only a 2k check from the government that can't make it, they'll take your 3k check and divvy it out to those who don't have to make things equitable. As it is, it's very likely the SS obligations are going to have to be offloaded to the general fund one day soon. as in a few years SS won't be able to make the promised payments it has today, not even taking into consideration tomorrow's obligations.

[@Shadow_Banned_Conservative]

@@JBoy340a Well, I typed out a well though out reply regarding our "entitlement" that KZbin feels they needed to censor. The truth has no place here on KZbin. Ain't modern day_fascism grand!

[@user-od9iz9cv1w]

I am impressed with the wisdom expressed by someone who is early in their journey. Best advice is to live below your means and live your life without benchmarking against others. Maximize your income, live below your means and save consistently while making conservative long term investments. As someone who came into this world modestly and retired comfortably I have to say I never had a specific number in mind. I knew generally what it took to live my life so I always strove to exceed that number and save the difference. As a boomer, it was relatively easy to build net worth through home ownership. I saw a mortgage as an acceptable leveraged investment and avoided debt everywhere else. Servicing debt is a millstone. I realized early that if it is meant to be it is up to me. In my first years working I realized governments might go broke and pay no retirement benefits. I also assumed I'd never inherit anything so it made me self reliant very early. Now that I am receiving some government retirement income it is like a welcome windfall. In hindsight this was a useful attitude.

[@paulmartin8212]

Best advice, live below your means. Get out of debt as soon as possible. Don't try to keep up with the "Jones's". I'm 70+, debt free when I retired. Great goal. I have less than 1 million net worth and can give 10k+ to charities every year and vacation as much as I want. Start early in life to take advantage of compound interest.

[@jsb9317]

Are you single?

[@paulmartin8212]

@@jsb9317 LOL, interesting reply. Actually widowed.

[@chemquests]

The answer gets more accurate as you sample more people who have actually been successful. Few really know what it would take to feel something before experiencing it.

[@nilsalmgren4492]

Do you have a roof over your head? Do you have plenty to eat? Then you are more successful than most people in this world.

[@RIPMrTimn]

The global poverty rate is 8.5%.

[@user-od9iz9cv1w]

@@RIPMrTimn I find 8.5% a hard number to believe. Google claims that in 2022 the US poverty rate is 11.5%. It is the richest country on the planet. A shocking high percentage of US people retire with no savings. So I think the post is spot on. If you have shelter and food security you are doing well. If you have retirement savings sufficient to meet your goals you should count your blessings.

[@JasonBay-RealEstateInvesting]

So many people say $1M is nothing now days. It's still VERY hard to reach this milestone. The median salary is $80K Even if someone could save $1,000 without ever failing to invest this amount, and assuming a 7% rate of return: it STILL takes 30 YEARS! I am not arguing to not invest, I am merely pointing out $1M is still significant and anyone who reaches this number should feel very proud. Gen Z wanting almost $10M can be done but now you're looking at close to 60 years.

[@shawnbrennan7526]

Many of us have said that $2.5M is a good target right here and now for “financially successful” because that equates to $100k per year using the 4% rule. My daughter is 22 right now. If we assume 3% inflation, the equivalent of the $2.5M when she turns 65 will be $8.9M. I’m not saying those numbers are easy or absolutely necessary, but people ought to do the inflation math before mocking the answers of these young people.

[@grega2362]

You have to get the first million before you can get the second.

[@jip230]

I'm glad someone pointed this out - and YES, just reaching $1M is really hard and out of reach for most Americans. There is a saying that the first $100K is hard. Well, the first $1M is even harder and only 8% of us will ever see a net worth of $1M and that is including home appreciation.

[@Shadow_Banned_Conservative]

@@jip230 Don't ever include your home's value in your net worth, it's a false sense of financial security and stability. A lot of people learned that lesson the hard way in 2008.

[@jip230]

@@Shadow_Banned_Conservative I don’t include phone value in my network but I believe the 8% does include home equity. Without home equity the number of millionaires in America just plummeted

[@alexanderlyon]

Congratulations on 100k subs!!!! Seems like you really blazed past it. _Onward!_

[@ErinTalksMoney]

Thank you Alexander!!!

[@Azel247]

You are spot on Erin! Feeling successful has very little to do with actual numbers. Rather, it's how you feel you compare to those around you (which includes the people you follow online). If you're 25 and you see 25 year old influencers flying private jets and driving lambos, you'll feel extremely behind. GenZ need an ultra high income to feel successful because that's the income required to live that (fantasy) lifestyle. I imagine this will change rapidly if those influencers are required to put a disclaimer when the planes, cars, and homes they are showing are rentals.

[@Shadow_Banned_Conservative]

There was a time when we used to watch a TV show about lifestyles of the rich and famous. Back then, it was a little escape from reality. Today, kids see what you describe and think they deserve that, and they deserve it now. I see that in almost all of today's youth, mostly on a smaller, but still unrealistic scale. For example, I work with 25-27 year old engineers who believe it's "unfair" that they can't afford a home at their age, in a hip, expensive part of the city. They "deserve" a nice car now, designer labels, new phones, going out every night of the week. They're spoiled to the point of disenfranchisement with the system because they can't have the things in their 20s and 2 years out of college that most of the older generation worked to achieve over decades of work, saving, sacrificing, etc.

[@Draggonny]

​@@Shadow_Banned_ConservativeMy income is low but I'm still better off than a lot of people who have a much higher income. My husband and I have a good combined income, we're both frugal and we live in a low cost of living area. Our money goes a long way because we buy a lot second hand. We rarely spend more than £100 on a piece of furniture. That means that we can furnish an entire room for less than some people would spend on one item of furniture. Even our dogs are second hand. It's a good combo because you don't cry when your 2 for £350 huskies eat your £120 table but you would cry when your £1500 huskies eat your £1000 table.

[@jerrym3261]

Science taught me happiness. For me, I live in the now and often ask myself, what do I need to be happy right now? My answer is always nothing, I don't NEED anything to be happy.

[@neverclevernorwitty7821]

Genz wanting 600k/yr!? 🤣🤣. Ladies and gentlemen, I give you the influencer generation.

[@angiepatterson6338]

It’s not so unreasonable-they’ll just have mommy and daddy give it to them every year.

[@shawnbrennan7526]

Wanting $600k - so what? They were asked a question about what number would make them feel very successful and they picked a big number. No big deal.

[@JasonBay-RealEstateInvesting]

@@shawnbrennan7526 It's wildly unrealistic. That's why it's funny.

[@shawnbrennan7526]

@@JasonBay-RealEstateInvesting That wasn’t the question though, was it?

[@Stupid9808]

Or failing math departments in education.

[@UncleWally678]

I’m a boomer. For years , while saving & preparing for retirement, I followed the advice I received from listening to Bob Brinkers financial advice radio program. His goal for retirement was to reach critical mass. Meaning you have enough income from savings and retirement that you are able to pay your expenses without reducing your savings/net worth. To do this you need to be able to honestly project your expenses and build a budget you stick to based on those projections.

[@j10001]

That’s a great term - borrowing the physics concept of critical mass in a nuclear reaction. I love it!

[@biovmr]

Maybe I am old-fashioned, but I have always looked at financial success as being able to live one’s life without relying on someone else to help you financially. That’s it. By this measure, I have been financially successful since I was 17. This does not mean that I did not need to work

[@RIPMrTimn]

It's expected to not be a financial burden to those around you. Success has always been viewed as the step beyond that, being able to sustainably provide for others as well.

[@biovmr]

@ that makes sense I guess. The question that comes to mind is help how many others? I’ve raised four kids, supported three wives (not at the same time, of course.) I have given Perhaps 5% of my annual cash flow away to others, Many of whom were just strangers over the decades. I have never started a business or a charity, because for whatever reason, I just never had the interest to oversee that kind of stuff. It is interesting to see how others view financial success. My comment about self reliance is the lowest level of financial success But I feel it is the most important one. Immediately, after that, in my opinion, and priority is, as you mentioned the ability to help others Financially. The next level after that for me would be personal experiences that cost money, such as travel, Education, etc. interesting topic. In the final analysis, the most useful way to look at the concept of financial success is probably the achievement of financial goals, which can be at many different levels, and which probably do not cease to exist throughout one’s life, such as the ongoing desire to achieve different things financially as you traverse various stages of life. Since I am probably entering the last third of my life, I am almost 60, my thoughts on future financial success point mostly toward helping the broader society. Peace out.

[@mymodely7755]

So basically GenZ doesn’t have the life experience to understand how life works. Their income number are unrealistic.

[@eddiemalvin]

What's unrealistic about it? The survey didn't ask what they expect to earn or the minimum they'd need to survive. It asked how much income to feel "financially successful". They have a higher bar than you. It's OK.

[@JC-21470]

@@eddiemalvin - No, I think more likely they have no idea how money or the world works and thus pulled some number out of their @33.

[@Conquerer.D.K]

​@@eddiemalvin They live in Lala land. But you're right they're entitle to their goals, no issue there. They'll have a way longer rat race to run that's all. To each their own.

[@wernerfoerster3666]

@@eddiemalvin unrealistic. calm down.

[@eddiemalvin]

@@wernerfoerster3666 I'm speaking from experience because that's roughly our household income and I'm not exactly the brightest bulb. It's absolutely achievable.

[@Brian-nb6fb]

Not sure who said it... Comparison is the thief of joy! This has never been more true as now with the ability social media provides to compare. Just because someone looks well off doesn't mean it's true!

[@Draggonny]

You have control over what you watch. I watch a lot of content that shows me how good I have it instead of all the things I can't afford. It makes me thankful for what I have. Not only am I doing well in life but, if it all came crashing down, I have a loving family that would help me rebuild.

[@djcoolrule]

Between 300 to 500k in my TSP is all I need. If I can grow it higher puts more icing on the retirement cake. Merry Christmas to you and your family Erin!

[@Retired_Life_1]

That is very attainable. I retired earlier this year at 56 as a TSP millionaire ($1.4m) with 31 years of service. I invested aggressively the C and S funds for the first 25 years or so. I was planning on staying until 60 but with the fed pension and separate investments I can cover all my expenses. Good luck on reaching your goals.

[@tgunnarson]

@@Retired_Life_1 - Congratulations on reaching MRA 30+ // My goal is only slightly delayed by previous employment as a contractor but as a DOD civvy, I'll retire @ 60 with 25yrs (57 now, working in Germany for EUCOM, touring Europe with wife and loving every minute of it.)

[@tgunnarson]

Great to see other GS people on this channel. Maybe we can convince Erin to dedicate an episode to planning for a fed gov retirement ... 3yrs from FERS retirement, 3 houses paid for and renting out while wife and I tour Europe on my last assignment before collecting the pension. Started my career with no degree, enlisting E1 for Desert Shield (Sep90) raised 2 kids and always lived on less than we made. Paid cars off quickly or paid cash for them. When the family was growing and we needed to move houses, we kept the previous one and rented it out until the mortgages were paid off. We plan to never sell a house, use them for rental income to supplement pensions. If we get SS income, we'll use it for hobbies or reinvest. TSP/401k we plan on using for QCD to reduce tax liability. Retirement is great when you live on less than you make and really painful when you don't.

[@vchap01]

I am guessing you have a pension.

[@leftwingersareweak]

This lady is smart, wise, and really attractive! Great combination.

[@jimkelly1613]

Maybe forgot great voice

[@scottthomas1894]

Great video Erin. I think the ultimate sign of success is being a KZbin content creator and having 113,000 subscribers.

[@ErinTalksMoney]

Hahaha!!! I love it!!

[@Gary65437]

Never happy, they will always want more subscribers and of course more dough.

[@Travlinmo]

Cookie dough?

[@ErinTalksMoney]

I can certainly say that I am so incredibly happy 😁 KZbin has been such a fun passion project that has connected me with so many wonderful people. I feel so grateful and blessed to have this platform!!

[@ErinTalksMoney]

And always yes to more cookie dough! 🍪 taking my son to the cookie shop today for holiday treats!

[@stevenspencer306]

Towards the end, you seemingly interchange comfortable with successful. I would say I'm more than comfortable. But I define successful as winning, and if I'm not doing better than 95% of my peers I'm not winning.

[@Draggonny]

Oh no! I'm only doing better than 70% of my peers. I'm such a loser. Lol.

[@ReflectionsandRealTalk]

Your videos and editing are really nice and engaging. Your content is interesting and relevant. Nice work!

[@AndyTempleman-ot6lu]

People need to find satisfaction in saving and not just buying and spending.

[@angiepatterson6338]

@AndyTempleman-ot6lu Hogwash! I’m 22 and want my Omega and Porsche now!!!!

[@PhilDann]

Excellent video! It’s completely personal and based on your values. It’s a journey and for most of us, it doesn’t happen overnight. It certainly hasn’t for me and my family. We’ve stuck with a thoughtful budget for 20+ years now while also making sure to enjoy life today too. Tomorrow is never guaranteed. I’m proud to say we became debt free this year (56) and have a very healthy retirement account. We certainly aren’t rich; we live modestly. Funny though the numbers say we are but I don’t feel that way!!

[@jackiv7318]

To me, financial success is defined by slightly different goals, than certain numbers -> Paid off house; 6 months of expanses in reserve account; alternative source(s) of income roughly the size of your main income.

[@Vasquez-t9k]

I recommend everyone to find the book titled The Elite Society's Money Manifestation, It changed my life.

[@mocheen4837]

Millennial women also need a partner who makes $1 million per year, owns a home and is 6’ tall. Expectations are off the charts.

[@jerrym3261]

I just saw that video!

[@shawnbrennan7526]

Millennials are now 28 to 43 years old. If your daughters were in that range and happened to be considering marriage, wouldn’t you want them to consider whether someone was financially savvy? (Height shouldn’t matter in a relationship, yet studies show that tall people are paid more and are more likely to reach the C Suite).

[@kannermw]

​@@shawnbrennan7526C-Suite represents

[@hippusmaximus9319]

Whoa... Are Better Bachelor and SSM viewers on here too?

[@jip230]

Yet men who have none of those attributes get married every day. Why is that?

[@craigwhitten1]

This video is a good way to think about our perceived needs and what we actually need to be stable. My opinion about financially stable is orders of magnitude different than my Boomer parents. Another way to look at things, one of the reasons why Millennials or Gen Z might think they need so much to be financially stable is the tendency to compare their experience to that of others. Social media is the thief of joy.

[@Draggonny]

My opinion about financial stability has to be different to my boomer parents. Adjusted for inflation, my dad earned as much on his own as my husband and I earn combined. My parents both have a higher standard of living in retirement than I have while working full time. I manage my expectations to keep them realistic.

[@petestandley2690]

A lot would depend on how the question was asked. Boomers might already be retired, are far more likely to have a pension (which is often not part of what they might consider their personal net worth), and SocSec checks coming in, so their personal retirement accounts have to account for a much smaller portion of their needs. Younger folks are more likely looking at being personally responsible (401K, IRA, etc) for their whole support and discounting the future value of SocSec to almost zero in some models. Factor in the many more years of need if asked what they would need right now, easy to understand the very large numbers they estimated they would need/want. To really understand the responses to a survey, one has to see the actual questions that were asked to the people and how they were phrased. Was it a verbal survey or a written one, did the survey provide open boxes for answers or simple multiple choices of ranges for the answers. Survey design can and will seriously impact survey results to favor whatever narrative the questioner wants to support.

[@shawnbrennan7526]

Boomers are definitely more likely to have pensions than the later generations, but it is not as prevalent as I would have guessed. Among “peak boomers” (born 1959 to 1964), only 24% have traditional pensions.

[@Larry-yb7zl]

I teach my work skill set at a local community college as an adjunct. I am a late boomer and feel financially successful. I was able to switch to this PT employment and try to help other aspiring to do what I did. I've been doing this for five years. What I find is there are very few students who have any idea what life will bring them as their parental generation did not teach them basic life skills. The numbers in your surveys demonstrate their unrealistic financial expectations of employment. The number of students who are on some kind of medical plan or mood altering drugs for their "mental issues" is unreal to me. This is not something I ask them but I constantly hear, "i have a psych appt and won't be in class or I'm out of my meds" and need to go to the doc for a refill in their conversations. I would say that less than half are seriously interested in the subject material I teach and will never make a career in my field. They seem to be lost in life.

[@fdm2155]

I wouldn't assume everyone who is being treated for 'mental issues' as you put it, is some kind of slacker. I know it can seem like we're swinging from one extreme to the other. Seems like when I was a kid in the 70s nobody was treated or diagnosed. Now every other kid has a diagnosis. However, it's not like young people can't suffer from depression, ADHD, etc. That said, I wonder if their inflated salary targets are based on what they expect to earn OR what they think is a number that would bring financial freedom/security.

[@Larry-yb7zl]

@@fdm2155 To clarify, I did not assume anything. I stated my observation and their conditions are on file at the college as handicapped/disability. It's not all students by any means but a considerable number. Instructors are given the list of special needs students at the start of each course. I'd like to also add that I do my best to accommodate all students, it's just the number of students who are enrolled with medical conditions on file is quite high.

[@Shadow_Banned_Conservative]

I'm a Gen X'er and the problem of not being taught basic life skills isn't new. Some of us were lucky to get that, others not so much and it shows in their decisions. But one thing you touched on was one that surprised me as well when dealing with today's youth in the workforce. Almost every one of my colleagues under 30 years-old will freely tell you all about going to a therapist or being on meds for some type of "disorder". It's almost like they feel enlightened for telling you they see a professional to sort through their problems. And I have a theory on that, it's that nobody today has friends anymore, they have social media. I grew up with people very close to me and we got each other through the hard times, death, divorce, relationships, finances, etc. Nobody does that anymore from what I can tell, at least most have told me they don't have anyone to talk to about the really hard things in life.

[@Larry-yb7zl]

@@Shadow_Banned_Conservative You nailed it. I had a student this year with autism and this was my first time trying to understand. Our class started at 7am. I usually got there by 6:30 and he was typically at the door when I arrived. Got the highest scores on the written work of all students and never missed a day. Would not acknowledge my "good morning" or look at me when I arrived. Spoke with the other instructors and counselor about it and "that's the way he is, he is autistic". I read about autism then tried something. Asked him to hang out after class for a one-on-one to discuss why he refused to participate in labs (too many people was his answer). We walked into the lab, he leaned against a table and stared at the floor. I walked to where he was, leaned against the table same as he did and stared at the floor. And we talked for two hours about all kinds of things and he participated in the conversation. It was crazy. He said he does not like being around people, did not know why he was at the college other than he would be kicked out of the house if he stopped coming. He told me he made more money pushing shopping carts at Home Depot than he could doing anything else, has benefits and health insurance and does not have to talk to people. After this talk, he repeated "good morning" to me a few times then stopped again. It was eye opening.

[@simoncollingridge1992]

Thanks Erin for all your guidance in 2024! Merry Christmas!!

[@kwilliams1958]

Absolutely, Erin, comparison often is the thief of joy in many areas of life. Merry Christmas to you and blessings to you and yours for pragmatically and calmly reaching out to your community. BEST

[@ErinTalksMoney]

Same to you! 😊🙏

[@JasonBay-RealEstateInvesting]

Many people argue that social media is a net negative because it makes us compare ourselves to celebrities we don’t even know. I see it differently. For me, 99.9% of my family and close circle I grew up with (sadly) struggle financially. Social media exposes me to people who are succeeding, giving me something to aspire to. It shifts my mindset to, “If they did it, so can I,” and motivates me to ask, “How did they do it?” If I only compared myself to family and local friends, I might have set my bar far too low, simply because of the circumstances I grew up in.

[@wernerfoerster3666]

yeah, no

[@paulg2132]

I think you nailed it. Gen Z is constantly influenced by social media and entertainers or athletes of their age. They don't see that it took a lifetime to get to that place. Success any form takes a lot of work.

[@zhieson]

Agree. Truly shocking they think 600k is required for success. Makes sense the way you put it.

[@Draggonny]

If only the 1% are considered to be "financially successful" that's setting really unrealistic expectations.

[@robertmadderom7753]

Erin, you are too kind. The crazy numbers for annual earnings or net worth expectations for Gen Z are much more a measure their social media experience and perspective of life than their understanding of financial means. They will eventually figure it out, just might take them a bit longer than past generations. Thanks for your videos and willingness to bring some fun and practical life into the financial world.

[@gerardleslielutz2070]

I needed this video! We’re soon retired - in our 50’s and I’m very worried about our income. We have no debt and our retired income will be $120k/yr. Time to relax and travel.

[@jeffDwyer1]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[@fuzzresponder2225]

I lived below my means, paid off everything including my house and now I have more than I need!

[@winduncan9818]

I think of my financial success in terms of months worked a year. I work 6 months a year, pay into 401k and chill out in my condo in Thailand 6 months a year. Financial success to me is my freedom to do what I want with my time. And 6 months freedom each and every year while allowing compounding interest to do the heavy lifting is success to me. I can do this maintaining a apartment in California on a little under 80k. I half retired in my 40's giving up that 100k+ income and gaining my freedom.

[@dr_flunks]

600k salary just speaks to the immaturity of the responder. that's the rough equivalent of having 600k/.04 = 15 million.

[@fdm2155]

I wouldn't assume it's all down to immaturity but rather what Erin suggested which is younger people feeling the pressure of how much more difficult it is to afford an ordinary middle class life much less something above that. I'm Gen X but just shy of being a Boomer. It would never occur to me that I needed several million to feel 'financially successful or secure'. But I have a mortgage free house that didn't cost hundreds of thousands of dollars. And I didn't leave undergrad with $50k in student loan debt.

[@360dom360]

​@fdm2155 this is absolutely it. I feel this a bit as a millennial and I've seen those i work with younger than me talk about this and clearly feel it much more

[@shawnbrennan7526]

My daughter is 22. How much money do you think she should plan to have in her retirement nest egg when she hits 65? (And given that the question was “how much to feel successful” (not “how much to scrape by”) why is it surprising that they picked a large number that would get them out if debt, put a decent down payment on a house, and save towards the future?

[@princesskaitlinhazelwood4703]

They are young and do not understand how difficult it is to make money. I would say 200k but I am in my fifties. Net worth of 3 million or more to be wealthy.

[@Shadow_Banned_Conservative]

@@shawnbrennan7526 So that means she should expect a 600k income? You're losing me here.

[@Tialian]

A lot factors into the amount, but for us (as millennials) its about 150k which allows us to max our 401k and Roth IRA and still save for other things like house maintenance and future transportation needs. That said, we can live comfortably on 40k right now (before taxes), and once the house is paid off that will drop to 30k. Net worth wise, because we live so well within our means we shouldn't need a super high net worth when it comes to retirement. I have a hard time finding reasonable things to spend money on now, I don't see that changing after retirement. So I'd say a net worth of 1 million (which we hit in October) is sufficient for our particular needs, that does include our house though so 1.5 million would probably be a better target. That said, you never know what inflation will look like 40 years from now, but considering a dollar today is something like one third the value it was 40 years ago, the ideal target for us is probably 3.5 million. We are expecting a pension and social security if its still around, so the 3.5 is if we didn't have any other forms of income.

[@todd2456]

Erin - you went from 100K subs to 113K really fast - congrats!!

[@ErinTalksMoney]

It’s has been so quick!!

[@jjimperialetrucking]

Excellent presentation as usual Erin. Merry Christmas

[@martyi398]

If the resort vacation or cruise you recently had taken was not photographed & posted on Facebook, Instagram etc. Did it really happen?

[@turbocfn39]

So true and very sad.

[@JBoy340a]

@@martyi398 also there a sets wear people post themselves being in places they are not. And now with AI image and video generation you cannot believe your eyes

[@yvonnewong364]

Financial success for me: no debt (mortgage paid off and pay for new vehicle in cash), save 25-30% income toward retirement, live below your means, have enough cash for emergencies and luxuries such as vacations

[@Draggonny]

By that metric I should reach financial success in about a decade.

[@RichieRich-pn3gg]

love your content. Merry Christmas Erin.

[@tinmanslickgreasy999]

I felt like I made it when I became debt free. We paid off house no cc debt. And then we were able to save/invest over 40% of our income. Able to pay for any emergency feels good. Living below our means is what feels like we are doing ok.

[@LaTonyas_Library]

I’m a frugal person so $80k is enough for me to spend, splurge and save plenty. I’d be perfectly content with that level of income. Currently bringing in ~$120k and it’s largely going towards savings. So long as I have excess I’d like to give more to charity. $800k invested would support my current needs. So I’d feel very comfortable at that point.

[@WileeRunner42]

@6:28, here's something interesting. $1 million in 1975 is $5.8 million in 2025 according to the inflation calculator. So a question here is at what age does someone define what it means to be financially successful, what is the purchasing power at that point, and do they redefine it later? For me, I have always defined financial success as earning more than I spend. Since I control my expenses, I have met this most of my life.

[@densnow4816]

Definition of success is key. For me, it means achieving financial independence by a reasonable retirement age. I am on track having income and net worth figures well below GenX aspirations.

[@markmalloy3438]

Great video, Erin!

[@joewatts9132]

Income is career success (whether that be entrepreneurship or employee), net worth is what you would call financial success I think

[@Engineers_Shred_Too]

Empower should redo the survey and as the question in units of years of current living expenses. I bet the results between generations come closer together.

[@PNWeBike]

I’m GenX and $5.3M is close to what Ive been targeting as ideal to retire with complete financial independence. Though I’m prepared to retire in my late 50’s with about 20% less than that (the time is more important to me than the money) and rely on good investments and careful spending. If i can get a good sequence of returns in my first several years of retirement, even starting out at 80% of ideal, I will have more than I’ll ever need, true financial independence.

[@georgb4440]

At 72 my spouse and I deferred 1/3 our wages until we reached 70 years old. Now with pension, deferred income and social security we are making as much in retirement as we did when we worked.

Retiring at 62, in two years. Over 600K in IRA, two pensions, decent social security check and I will work part time to keep busy. No debt, and mortgage will be paid off in 2028. Feeling pretty good.

[@ttstang89]

I live in South Western PA where the cost of living is fairly cheap provided you stay out of the Pittsburgh area. For a single person you could get by with no frills and the bare essentials for about $2000-$2500 per month, that's you splitting rent and you've got a used car you're financing. You don't get a house because you might be able to save $100-$300 a month if you really stretch it and that $30k down payment is ten years away if you're lucky. So to just be able to get by on your own here with some dignity, $40k to $50k per year will get you there or $18-$24/hr. This area used to be so affordable where $20/hr was something you were proud of and could brag about. I can't imagine how much worse it can be especially in less depressed areas.

[@bartwensink6445]

“Comparison is the thief of joy”. So, to feel happiness/joy it is best to jettison all those social media apps.

[@gatordeen2528]

Erin, Another great job. Hope you feel better especially before Christmas.

[@ErinTalksMoney]

Thank you! I feel much better 😊 Merry Christmas!!

[@floccinaucinihilipilifications]

🎄Merry Christmas to you and yours, beautiful Erin! ☘️

[@ErinTalksMoney]

Merry Christmas! 🎄

[@robertyoung2318]

Well done. Happy New Year👍

[@ErinTalksMoney]

Happy new year!

[@mwedzi]

Would you mind posting a link to the survey? These answers are surprising and make me wonder about what the exact questions were and how they conducted/interpreted the survey. The least surprising number was that 49% of people feel they are less financially successful than their peers. That shockingly is at exactly what must be true, lol. That just under half of people think they are below the half point.

[@coast_into_retirement]

Erin, another great video. Thank you.

[@ErinTalksMoney]

Thank you so much!

[@davidroush1224]

Phase of life comment makes sense from my observations. As a boome, I align with some of these numbers as at this point in life everything is paid off and we are retired. We have over $100k in income and that provides extremely well. Even taking several dream vacations a year our total annual spending doesn't top $150k. Just got back from a couple weeks in Italy and even flying business class and taking one of our adult children the trip was less than $15k. Net worth by far is more important to us as compound interests are major after 50 years of saving - just our dividends generate more than our working wages were. We still don't take it all and reinvest most of it - a couple hundred grand a year more, further accelerating net growth and the subsequent dividend income it generates. Our 30ish kids have seen how well this worked for us and become focused on accelerating their savings to get their net worth higher at far younger than we did. For our family, Net Worth is the more important as it is thg goose that produces the golden eggs for generations if subsequent ones learn how to handle it properly.

[@DiFinni]

What ! I agree with her on the feeling successful part. 5.3 mill is high for Genx, lol.

[@davidg6588]

My feeling of financial success happened when I became debt free 3 years ago. I'm 64 and still work because I "want" to...not because I "need" to. Projecting to receive $120k in household income in retirement to offset $30k in annual basic annual expenses.

[@charletfoster8917]

Your motto on financial success is goal-worthy💯💵👍🏿

[@AngelinoLorena]

Great analysis, thank you! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?

[@MOTrav]

A lot depends on the state where you reside! Cost of living across the country varies greatly.

[@StevenLeBlanc-z9f]

And I also don't buy the criticizing of our young people. They are learning like we did by experience. Maybe life hasn't punched them in the face yet, but our young people will accomplish amazing things. And those who complain, "get off my lawn!" look in the mirror. Love our young people!!! Go get 'em!!!

[@rffinances8567]

The fact that Gen Z thinks they need that much income to be financially successful baffles me. Ther others, depending on the type of life they want I could see making sense. I really wonder what made them come up with that number. Though I also wonder if there was an issue with the suvey that gave them very skewed results. Those networth numbers are also really surprising. If I had a million dollars invested and used the 4% rule, that would give me $40k a year, a bit more than $3k a month. That would cover a frugal lifestyle. And while it might not cover everything I want, having enough money invested so I don't have to work to cover my needs is a pretty high up on the "financial success" bar for me.

[@angiepatterson6338]

@@rffinances8567 It’s because they piss away their money on luxuries faster than they make it.

[@angiepatterson6338]

@@rffinances8567 But they want their Omega and Porsche now!!!

[@hunnybunny4306]

For young people, if income helps build net worth, isn’t net worth more important while income is just a means to an end? And a high net worth can produce high passive income, which is better than a high active income alone.

[@grega2362]

Nailed it. Wage income is ONLY a means to an end. If you make 200K and blow all of it every year, you will never be successful financially. The neighbor who makes less and lives within his means will outperform in the long run. Net worth is the goal, What you own - what you owe. After some time, what you own makes its own income.

[@Shadow_Banned_Conservative]

I think the problem is if you gave them that 600k salary that they'd spend it all and still not save anything. They'd rush out and live that life that social media told them to aspire to.

[@seans7513]

My income is fine, for net worth it is to be financially independent. Roughly having enough that I would be able to use the 4% rule to make enough to cover my income and pay for collage (in state undergrad)for my 2 kids. I am working on it ~25% of my income per year.

[@shawnbrennan7526]

I’m actually surprised that only 49% think they are behind their peers. Especially since 50% are in fact behind their peers.

[@kannermw]

What metric is used to define behind your peers. If median wealth then yes by definition it is 50% but if using average then it is much greater than 50%. Probably closer to 70%.

[@Sylvan_dB]

I invest for income from growing dividends, and when that passive income exceeded my monthly expenses... Success.

[@bellmattwebb]

Erin, thanks for all of the great info! I'm selling my rental property specifically to get out of the landlord business. What would you suggest I do with the profit other than more real estate?

[@penelope5500]

As a retired BB I feel financially successful just b/c I have enough money to take me to the finish line, even if someone moves the goal posts.

[@aolvaar8792]

The measure of Success is in Being not doing, At the end of life, you want to be a Great Human Being, Not a Great Human Doing. Nothing Sucks Seeds like a beakless bird.

[@angiepatterson6338]

@@penelope5500 Same here (Gen X). I have no debt and live day to day on my Social Security. The rest, all that passive income like stock Dividends is just gravy that’s more than the Social Security that goes back into the stock market or gets used for vacations, etc.

[@Baiyoubai]

The benchmark for financial success should take into consideration of all of the above, and more. When talking about household income, is your household comprised of just 2 people, or a married couple with 5 kids? Say a family made $100k this year, but does it look stable in the foreseeable future, or is it just a one-off? A current net worth of $500k might mean you have $500k of assets and $0 debt, or you have $1M of assets and $500k of debt with an interest rate of 20%. Is your net worth steadily increasing, or do you expect it to go down drastically due to health issues, kids' college tuition, etc.? Location is also a factor; $X in California or Massachusetts may not mean the same thing in Alabama or Mississippi. Therefore, there cannot be just one single benchmark.

[@IndigoStarrAz]

GEN ZEE - Living large!

[@truthteller6743]

For me it’s not income, but passive income. That is true wealth.

[@paulschaaf8880]

I would say high enough net worth that your passive income from investment gains exceeds whatever your salary was in your peak earning year at your job. So the answer is different depending on your job and your spending habits. Maybe 2 mil to feel financially secure and more like 8-10 mil to feel rich.

[@Blubbha]

My plan is to increase my dividends and cut living cost by paying off my mortgage. This will allow me to optimize from both sides. Plan is to stop working if I don't want at 50-55. Now I am 37.

[@martinyeager7948]

Merry Christmas and blessings to you and your family.

[@ErinTalksMoney]

Merry Christmas!! 🎄

[@erickarnell]

My needed income changes so much depending on where I think I'll be living.

[@dquan731]

Financially success for me equals creating multigenerational wealth for my kids all the while spending lots of quality time with them.

[@marilynmontague6401]

Keep up the good work!

[@papster33]

Hope you are feeling better!

[@livingunashamed4869]

3 million invested by 55, 5 million by 60 are my goals :).

[@aolvaar8792]

Retired at 50 on a $100K/yr Government Pension + Free Lifetime Family Healthcare, I'm past my Goals

[@shawnbrennan7526]

@@aolvaar8792 Similar. So, run the numbers and figure out what nest egg you’d need in order to replace that pension and health care. This guy wanting to hit 5 by 55 (depending on how old he is) might be more or might be less than your situation.

[@Chris-hr2uj]

This is a great goal. I have a very similar goal, and the crazy thing is, i personally dont think 3-5 million is even wealthy, i think it is simply enough for you to claim financial independence. You'd still have to live below means.

[@livingunashamed4869]

@@Chris-hr2uj Exactly lol the struggle is real

[@aolvaar8792]

@@shawnbrennan7526 The hospital sent a bill, $920K My former employer paid it. $365K, the next year, Paid What do you do when they say they want a $5MM Pre-pay?

[@desiv1170]

I don't think of "success" as a lavish lifestyle... I think of success of being able to pay my bills, save for retirement, eat out at times, and have some vacations. We've been able to do that so far making less than those other numbers. (MUCH less than the Millennial one...). I'd think of those other numbers as examples of financial excess, not financial success. I actually think that much money probably comes with lots of other problems I wouldn't want to deal with. Never wanted to be rich... Just comfortable. But that's me. ;-)

[@1Shutterbug1]

How does net worth provide income in retirement? All or most of one's net worth might be wrapped up in the equity of their home. For example, someone 65 years old might have only $100,000 saved for retirement, but own a million dollar home that's paid off. Their net worth would be 1,100,000 (assuming they had no other debts). How would that person get income from the equity in their home?

[@LivefreeLoz]

Hit 240k today Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in September 2024

[@AmirRezaie-d2h]

I would really love to know how much work you did put in to get to this stage

[@LivefreeLoz]

I will be forever thankful to you, you changed my life I will continue to speak on your behalf for the world to hear that you saved me from huge financial debt with just a little trade, thank you Jihan Wu you're such a life saver

[@RichardArthurBaker]

His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

[@BryonyClarke-e4v]

Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People prefer to spend money on liabilities, Rather than investing in assets and be very profitable

[@PauletteSmith-s8n]

You are so correct! Save, invest and spend for necessities and a few small luxuries relatives to one's total assets ratio

[@daleholler8277]

Well presented ideas.

[@lovethomassowell]

I suspect that some of the high numbers for net worth are from our big problem - a lack of financial literacy. It was very rewarding to sit down with my 24-year-old son and do some modeling of his current income, investments, and savings rate using Boldin. We discussed how much he wanted to spend in retirement, when to buy a house, and how many kids he could get through college, and it was clear that he was on a good trajectory to hit his goals.

[@shawnbrennan7526]

And what did your calculations show he would need in his investment account at age 65?

[@jhoncena1111]

My goal is financial freedom from the 9-5. I can achieve this with substituting my gross income of 70k, or 500k-1M networth. Both have about the same effect.

[@tonymolina7744]

@ErinTalksMoney Murnin'! Can't wait to listen! 🙃

[@NiranjanBendre]

Income does matter but net worth is essentially that should and would take over. Least would be 25x annual expenses but most would be 50-70x for a fatfire.

[@1ahofner]

It can be any amount, as long as I keep improving every year

[@trackguy4038]

Can you do some videos on how you shop smart and make everyday wise financial decisions?

[@g.o.a.t4393]

Financial success has to be constant. Only net wealth can determine that. Income needs to minus your debts if any. So net wealth is the answer