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Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

One lesson I've learned from millionaires is to always put your money to work, no matter how small. Even investing $100 per month can compound to tremendous wealth over decades. The key is to keep going!

It's sad how difficult things have become in this recessive economy. I was wondering how to utilize some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $150K-worth stock portfolio from decline, but haven't figured which way to go.

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

Newbies need to learn the ropes, know how much risk they can handle and diversify their portfolio. Some folks get help from money experts or do their homework before making investment moves. It's all about being smart with your funds.

My main worry is how to increase my $240k reserve, which has been sitting idle for a very long time with little to no profits. I understand the long-term strategy, but my savings are being eaten up by inflation, and my portfolio is losing value every day. I need to find a solution.

Clearly Kardden was a right choice. Hope to learn more from you this is pure knowledge

Mine is 30-5-65. Wife and I are very frugal and still drive around our beater 15 year old Honda and Subaru.

All guys stacking Kardden Token before next bull are smart apes for sure

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Charlotte Miller.

You are right. Dining out is a 'WANT', not a need. I occasionally dine out and I pay 12% taxes and 18% tips, so if I eat a bowl of ramen for $20 then I will be paying $27. That is so so not worth it.

I think 60/20/20 makes more sense. If you want to afford more wants, find a way to increase your income

A big problem people have with budgeting their "needs" vs their "wants" is how they handle food. Eating out or buying prepared foods is a significant way to blow up your budget if you are lower income. I got in the habit of separating "groceries" from "entertainment" and putting any prepared foods including from the grocery store in the entertainment category and my habits changes very quickly.

The Kardden KRN will overtake doge and SHIB so easy

I do 40/20/40. 40 needs, 20 wants, 40 invested/cash savings. I am single, I live in a 1 bedroom in a Midwest suburb. My apartment is the perfect size, I cook at home and meal prep with rice or pasta, veggies plus a fish or chick (beef tacos occasionally), and once a month I might order pizza. With a small apartment my heating and cooling is low. I have a paid for car I try to keep in the best condition (15 years so far.) I put a lot into saving and investments because I am 46 and I want to pack in as much as I can now so it can compound and reach financial independents by 60 and at that point I can choose to stay at my current jobs (if I am still here) or I can try something new without the financial worry. I'm also a homebody so If I do spend it is on my hobbies; gaming, drawing, playing guitar. I can see this switching to 60/30/10 as I get closer to 60.

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

If you're an employee of a large enough company (one that offers a 401k), you can easily automate at least a 6% savings investment right away. Typically they'll offer a match, which makes it a no-brainer. The sooner you can make this the default, the better. I started increasing it by just one percent each year, and I'm now at 17% of my income invested into my 401(k) and I don't feel the "hit" at all because it's been steadily increasing over the years. I would say I started late, I just turned 39, but it's comforting to know that in 8 years I'll be saving a full 25% of my earned income, tax-free, and those returns will be tax-free.

To keep things simple, my spouse and I simply follow the 4% rule. Save enough money so that, when you retire, 4% of your entire savings will cover your living expenses. For instance, if you have $1 million, you can take out $40k annually (with most investments paying dividends of roughly half that amount). It's a straightforward guideline, and we only calculate what we save for ourselves-we don't bother figuring out things like Social Security. If we require that, we view it as "extra" rather than absolutely necessary.

I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.

34 currently living a 35% (Needs) 15% (Wants) and 50% (Savings/Investing), six figure income no kids not married FI/RE by 38-40.

Investing 10% of your income will get you nowhere unless you have 40 years ahead of you. My ratio is 40% needs, 10% wants and 50% saving and investing. With a more aggressive investing strategy, I'll quickly increase my income and will slowly lower the ratio as I see fit.

I am retiring at 45. Managing your money the right way will help you reach your goals so fast.

We are doing much of this! Have Rental Houses for our Fixed Income portion! Wife’s 401K is in the S&P500! (We have been doing ROTH for a number of years! Also been Maxing out Contributions roof a while now!

For me it's 50/15/35. 3k net income, but life is cheap where I live and I don't have a car.

Tightened my belt as far as I can where I spend about 75% on needs 10% on discretionary entertainment 15% on investment and savings. Family of 7 single income.

So frustrating that every time I come to your comment section it is (for me at least) basically only the spam bots peddling scam investors. Love your work Humphrey!

I use the 30/5/65 rule, 30% needs, 5% wants, and 65% savings/investment. As an Asian, this is pretty common. 😅😅😅😅

Every time your income goes up, you should be buying more dividend paying whole life insurance. Funding your own banking system, and controling the baking funtion in your life is more important than investing.

10% is too low, at least by Asian Americans standards. My parents saved 50%. My wife and I, with 3 kids, still save 30%. There are plenty of ways to save more. Before you get married, split a 3 or 4 bedroom apartment with 3 friends (you know, like during college). Marry someone frugal, then all the sudden you have 2x incomes and only about 1.2x the cost.

the most fair approach and yet the ultimate king of meme is Kardden

50 saving/investing, 30 needs, 20 wants

Podcast and get on Spotify. Would love to listen to this on there. Usually don't have time to watch a KZfaq video.

I'm still doing: -W, 20% -I, 30% -N, 50% But I'm definitely feeling the burn this year as my responsibilities grow. I might end up adopting 60/30/10 in the near future.

Rules like 50/30/20 are a bit, too simple: iMo needs are needs. You can’t reduce them. Income is a multi-year project, so can’t be manipulated much assuming you work full time at the edge of your earning capabilities. So it’s basically savings vs discretionary spending. You set a savings goal, then try to keep your spending under control.

Currently doing 60-15-25 as a 22 y/o making 50k… however I am about to start aggressively paying off my car loan to free up more money in the long term for saving/investing. Also just graduated college so hoping to secure a higher paying job with benefits soon.

I grew up poor, so wants, I'm used to window shopping and only get a want if it seriously works into being a need, so I do more of a 60/20/20...

Well im glad im not alone in really struggling to get my expenses down to 50%. Currently at 68% on a lower income but always strategizing to get it lower. My savings wont go below 20%. Most months its around 25%. You wont catch me broke at retirement.

I would love if you did a video accounting for people who like to donate to charity. I personally donate 12.5% of my gross income. It would be interesting to explore what it's like to target retirement based on that, and also how to calculate what to give based on your retirement earnings.

This was a really well laid out roadmap.

I find it crazy to add credit card debt to "NEEDS". Credit card debt is most likely from over spending in the "WANTS"! only issue in the 50/30/20 is debt.... Instead of 60/30/10, you should go over the 50/50/0 rule. 50% TO NEEDS, 50% TO DEBT, 0% FUN...

I use 80/20 rule. 80% in money market at 5% and 20% in leveraged option plays.

hi Humphrey I love all your videos and have found your channel soo helpful over the last few months since I found you! I don't know if this is a dumb request because I'm still fairly young-ish but I've been trying to figure out what disbursement of funds in retirement would potentially look like for me. Would it ever be possible for you to do a video on what actual retirement looks like? Like for example, how do you go about actually withdrawing that magical 4% from your retirement accounts? How does it all work and then how would taxes look in retirement for the average person? Then also, what would happen if the stock market crashes right when you retire, would you just keep working until it levels out again or what would you suggest would be the best move here? I know you don't have any magical info but wondering if you could provide at least best use cases or conventional wisdom tips here. Thank you for all you do! Keep up the good work on here!!

Another great video. Interesting to see how much inflation has changed the way we live our daily lives. Also, is it cold in San Francisco? Hoodie in July? 😂. Looking forward to the next video Humphrey.

Kardden movement begins and everyone is like acting crazy. Let's bring it up!

I always thought it was 20% of gross. This is reassuring as I save around 15% gross or 30% of net.

I appreciate you mentioning countries other than the US

The 10% very much reminds me of the book I read decades ago called The Wealthy Barber by David Chilton. Give it read if you haven't. Some decent wisdom contained within.

Remember, you are not a tree - you can move.

I got lucky and bought a cheap foreclosure before the run up on housing. Current mix is about 30/30/40

I'm saving about 55% of my take home pay. I paid off my student loans last September and I'm getting married in November. Hoping to buy a house next year. The 55% savings are going into a Roth 401k and house savings. I feel like I should be investing at least a little outside the company Roth. Thoughts?

It would be great to see how inflation is considered in the compound growth calculations. Sadly I can't see $30k p.a. being sufficient in 2057 when I retire, so the 4% p.a. draw down from the $1.3m wouldn't be sufficient. How do we address this critical assumption?

Great content, Hump. 👍🇺🇸

Great information, thank you!

Would you mind doing a video talking about trad 401k vs Roth 401k and when to do which? Thanks. It's one of those things that nobody really discusses in great detail and I'd appreciate your take.

Hey, small question. I stuff a bit of money away every month to the side so I can buy "medium" purchases like a new Phone, Holidays, Gifts, and so on.... Does that qualify as "Saving" or does that belong to the "Wants" category? It is spend at the end for stuff i WANT but in theory i SAVE it of a later date to buy things I want/need so I don't have to use credit or something like that. Thanks for the explenation and keep up your great work. Really enjoy your content and the way you describe this stuff, even tho it's a little different in Switzerland, it gives a good understanding about the whole stuff.

Using 8% rate of return, but not consider inflation doesn't work. Either you reduce the rate of return by inflation or you need to adjust the 4% target with inflation. So 10% saving will not get you to your FI number in your example.

As an investment enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make decent returns

For me it’s 55/20/25 needs/ wants/ savings. I’ve been looking into investing but I’m really not too sure on what to look for 😂

I live now with 50/20/30 I am also doing a lot of side hustles what I use to pay of my student debt. Also that 50% is also including double the minimum payment for my loan. Finally my salary will go significantly at the end of this month I will use that money to save for now so I can just buy a second hand car without a monthly payment

I’m saving 40% and trying to get to 50% saving rate.

What about accounting for inflation when we retire? With a small inflation rate of 2% $10k of today's money would have the The spending power of around $15k 20 years from now. I've watched a lot of your videos and haven't seen any income adjustment for inflation. I'd love to hear your insight on how we can attempt to account for this as we get older.

Personally I think savings should be equal to wants. Most of the things we "want" only make us happy for a few hours, maybe a few days at most. But higher savings and investments, allow you to do more things sporadically throughout the year especially in the future so you don't have to work yourself to death. I'd rather be working a job allows me to do what I love on a regular basis and maybe pays a little bit less, then a job that makes more, but miserable for 40 years working just to maybe enjoy my retirement for 10 to 15 years. That's why I try to live a bit smarter and frugally now saving and investing, so I can enjoy life while I still have the time and energy.

Its sad because here in Colombia a “proper” income its like 12k a year

I think I'm going to squeeze my wants budget and try and stick to 20% of gross income to savings because it's of those 20% that I'm rebuilding my emergency fund. However, taking 60% of after tax income towards needs sounds about right so I'll just take whats left towards the wants. The last couple of months have been tough because at the same time I had to pay my "new" car (no car loans for me thank you), some unexpected house repairs had to be made and the music studio also had some gear brake down but starting August I just MUST get back on track.

You missed to factor for inflation, check what’s the purchasing power of the saving at age 65

Nice hoodie! Where’s that from?

Thank you for putting the the tax advantage equivalents for other countries.

This only applies to billionaires. The rest of us struggle for daily needs. Thanks jb.

Kardden Token time! This thing is lifting up in ways nobody did before

~35/10/55, LCOL and car free. However my salary is very low so I'd still be better off somewhere else most likely.

What were the Pro Rata rule related resources mentioned in the video?

Thanks for thinking of us in Australia...

Mine is 40/10/50

Thanks, please make another video about Kardden I prefer Kardden that is strong

I’ll be the one to argue that your subscriptions sometimes can be a need 😅😅

Does the 10% rule include the ones where my employers take it out directly from my paycheck with their match or do I consider both as bonus?

Kardden making ATH after ATH 🔥🔥

At 12:25 you've got a mistake re: Backdoor Roth - "Traditional ROTH IRA"

Do you still work a 9-5 job with the amount of work you put into your channel?

Lets get one thing straight. Eating out. No matter where. Is and always has been a luxury. And we really should still stick to the 50/30/20 rule. Its not dead. San Francisco & ny have never been affordable. If it needs to change then 60/20/20 or 60/25/15.

Don't forget child care! Child care is a big expense that many don't factor into their expenses as a need.

Omg so bullish on Kardden! ATH next month? 🔥

Humphrey Gosling LOL I cant stop laughing :)

Is it weird that I feel 10% is to low for saving and investing

I respect your work mate so you say Kardden good one to use?

Kardden Token is next atleast 40x coin, upswing better than Kardden at primetime

I'd argue that gym would be a necessity because exercising consistently while you are younger leads to lower health bills when you are older.

I use 70 20 10....10% is the most important though, the investing portion

What are the Roth IRA equivalent tax advantaged accounts in Asia? I'm from the Philippines, and I don't know where to find out similar accounts to that. Can you provide a list of such similar accounts for your Asian viewers please?

Better not to pay rent in retirement. Better to own a home. Not necessarily rent free but property taxes even at 12k a year is only 1k per month. House insurance even at an outrageous 5k per year would only be $600 per month. Watch the HOA fees too.

Key issue with this rule, you did not put aside saving for car, repairs of your home, or emergency fund. that 10% is built as just a pure investing concept. Cause if you were to save 10% 50k its 5k , that will take you about 3 years of pure saving (no investing , to buy a decent car these days).

Isn’t the income limit 146,000 for single filers for the roth ira this year?

I’m definitely following the 60/30/10, but the 30 and 10 are flipped

Hello?! 10% saving is for dummies and beginners. it shouldn't be called savings, it's just like leftovers for ordinary people if you are not broke or in unhealthy debt.

Are pet food and supplies needs or wants? are gifts for loved ones needs or wants? Are snacks, sweets, or seltzers needs or wants? Are supplements (not prescribed medication) needs or wants? ugh

Does he still have his Christmas tree up in July?

Needs are like 7% of an income in my case.

Im only doing 15% all in sp500 im 41 yrs old

30% is too much wants. I think 15% should be wants and 15% savings and 10% investing. Once you have your 6 months of expenses you can do 20% savings and 20% investing.