Why So Many High Income Earners Are BROKE

Рет қаралды 53,935

Күн бұрын

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If you've ever thought that earning six figures means you’ll become wealthy, chances are you’re wrong. 51% of Americans making $100,000 or more are living paycheck to paycheck which is really strange but there’s 5 reasons why high income earners are broke.
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⌚️Timestamps:
00:00 Start Here
00:15 Weird Behavioral Phenomenon
01:53 Income ≠ Wealth
05:53 The Broken Path
09:00 Bombardment Spiral
11:31 Wrong Tax Strategy
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All opinions expressed by Vincent Chan are solely Vincent Chan’s opinions. You should not treat any opinion expressed by Vincent Chan as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Vincent Chan’s opinions are based upon information he considers reliable, but does not warrant its completeness or accuracy, and it should not be relied upon as such. Vincent Chan is not under any obligation to update or correct any information provided. Vincent Chan’s statements and opinions are subject to change without notice.
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Пікірлер: 168

@VincentChan 4 ай бұрын

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@n0nyabznss 4 ай бұрын

Renting an apartment is the dumbest thing one could possibly spend money on. you're basically throwing money out the window. The big problem I have with people like you is that no one wants to walk you through how to make money step by step.

@JosieDrake1995 4 ай бұрын

My parents were high income when I was growing up, but they were living well beyond their means. Thus, we were always on the verge of financial collapse. I didn’t understand why I was rich in some ways and poor in others. Only as an adult did I figure out why our situation was like that.

@IamAWESOME3980 4 ай бұрын

high-income earners have too much student debt which is ironically why they earn so much in the first place, lots of education. same thing for other income earners, business debt, mortgage debt. those income-generating investments are all finance by debts so although you earn more, you have lots debt and hence high monthly interest to pay so paycheck to paycheck.

@dianabinkowski3927 4 ай бұрын

It's called keeping up with the Jones's. I have in-laws that did that for years. My late husband and I always lived beneath our means. We didn't take fancy vacations to LasVegas or Hawaii. We didn't have credit card debt in the tens of thousands. We didn't take cruises two or three times a year. I currently have no credit card debt, no car payment (paid cash), a mortgage with a 2.875% interest and making extra principal payments. I live very comfortably and putting money into savings every month.

@ilyasavostyanov596 4 ай бұрын

The economy is no longer income-based, it’s wealth-based now.

@millabasset1710 4 ай бұрын

That and the high tax rates for those making under $100k, plus the Ukraine and Israel tax fund.

@theokay1 4 ай бұрын

@millabasset1710 except the tax rates above 100k are more than that of lower

@IrisP989 4 ай бұрын

Exactly. There are clear tax brackets and those that make above $100K are paying more. @@theokay1

@Mesaaaaaaaa 4 ай бұрын

Would you rather have 90% of $60k or 50% of $1m? Only looking at the tax rate is... Grossly misleading.@@theokay1

@unkono 4 ай бұрын

Bye bye middle class

@karakol86 4 ай бұрын

I started in my job making around 40k and now I make around 150k (been in my job for a while, like a while) and my spending hasnt really changed over the last many years. I am actually motivated to save more and decrease spending.

@IamAWESOME3980 4 ай бұрын

@timgibney5590 3 ай бұрын

Good for you! If you were born 10 years later you would be having room mates and being up to your eyeballs in debt as 65k is the new 40k. A house?? HA! You need 130k a year for that. Good luck starting out or if you are under 40.

@IamAWESOME3980 3 ай бұрын

@@timgibney5590 it is still possible to live a good life. i graduated college debt free and now making 140k as a software engineer at age 27. I have over 160k in networth all in savings account, 401k and IRA. i can buy a 1 million dollar house with 200k+ downpayment by age 30 if I wanted to. problem with many young people nowadays is that they like to impreganate and get pregnant before marriage, go to none public schools with high debts to earn useless degrees, and on top of near zero financial literacy. if they don't have the wisdom to make good life choices like using protection during sex, studying something useful for the money spent, I would not be surprise they make poor decisions in their finance as well.

@michaelbowen9653 Ай бұрын

@@IamAWESOME3980 i get your point but ill also point out 15-20% of high-income works never went to collage there field pays really well when i started out in the oilfiels in 2007 as a pumping unit tech only made 30-50K after leaving getting on a rig 100+ most i made was 147K a year but 2 years later having a stroke cuz wife at time racked the credit card up over 200k i worked 6-7 days a week 14hrs minimum most times 18-20hrs. the stroke happen after filling chapter 11. Then she left ive never made over 60k since but ive saved 15-20K every year since so saving money needs to be both partys priority not one sided or we can just pay it off over time, debt to me is scary i dont like it, when you make xyz you should have a % to save and % to invest its up to you have control unless you have a wife/parter that thinks your like the government you can just keep spending till your broke then find someone els that has more.

@troyhung4307 4 ай бұрын

6 figures is just upper middle class, not rich

@sfrealestatedealmaker6001 4 ай бұрын

Six figures can be $999,999 a year wtf are you taking about?

@djtwister6997 4 ай бұрын

@@sfrealestatedealmaker6001yes that’s upper middle class

@DefenestrateYourself 4 ай бұрын

@@djtwister6997 highly dependent on location. As a blanket statement it’s incorrect

@IamAWESOME3980 4 ай бұрын

6 figures USD in Vietnam easily means top1% cuz less than 1% people there make this much

@odesangel 4 ай бұрын

"Six figures" is a dumb classification that has little practical meaning. It could mean $100K or $900K. Someone making $100K is living a very different lifestyle from someone making $900K. To lump them together as if they're in the same socioeconomic class is absurd.

@hunterandchavy 4 ай бұрын

I highly agree Vincent. I, myself, work as a healthcare provider and make high income which causes us to buy cars, cellphones 📱, homes 🏡 because “we can always work” more hours. Lifestyle inflation is real. Currently I do not have a car payment and put more into my retirement so I am moving in the right direction but I know I could do more. Thank you for this video 🎥

@B_Van_Glorious 4 ай бұрын

I went from earning 6 figures to now only needing $5k a year to survive. Capitalism has made me an anti-consumer, so when I do buy, I buy used to not have to give taxes to the man. No amount of money will ever be enough if you can't realize a life independent of its need. Or, the ONLY way to HAVE money is to not SPEND money.

@IrisP989 4 ай бұрын

We spend money as a family with kids in a high cost of living area and still have money.. You can still have it even if it don't hoard every penny that you have.

@pensacola321 4 ай бұрын

@MisteMAGA 🤡rMischiefGaming

@sasukesuite1 4 ай бұрын

I make $192k a year and I save and invest $7k a month. Like I literally don’t know what to even do with that extra $7k other than save and invest it. I eat out every day and my car payment is $1k a month. If you can’t live on $250k a year, you’re the problem.

@truthtelleranon 4 ай бұрын

that means you’re only living on 2k per month (after the 1k car note) which is very low for most people making that amount of money. (assuming this is your pre tax income )

@MrBorv 4 ай бұрын

Depends on where you live . Bay Area or NYC 250k per year is not that much. If you have a family you just get by.

@DefenestrateYourself 4 ай бұрын

Terminally online take 😂

@DonutAgain 4 ай бұрын

I wanted to do that but I have to pay my mortgage and HOA that was like 5k a month.

@truthtelleranon 4 ай бұрын

did you know that before getting the mortgage? that's wild@@DonutAgain

@cancel.lgbtq.6892 4 ай бұрын

Comparison is the thief of joy.

@charletfoster8917 4 ай бұрын

This video is soooo needed🙏🏿😊🔑💰

@yannip2083 3 ай бұрын

People around me at work mostly EAT up their paycheck on expensive lunch!

@lizhernandez3857 4 ай бұрын

Great Video 🎉

@youknowwithMartyKauffman 4 ай бұрын

All that people need to know is money talks however wealth whispers

@jared19882 4 ай бұрын

i think you have that backwards, money whispers and wealth talks.

@youknowwithMartyKauffman 4 ай бұрын

@@jared19882 no because if you’re truly wealthy, you’re not walking around wearing Gucci like look at Mark Zuckerberg he wears the same black T-shirt every day

@barbarar5869 4 ай бұрын

@@youknowwithMartyKauffmanNothing wrong with Gucci if you can comfortably afford it

@youknowwithMartyKauffman 4 ай бұрын

@@barbarar5869 oh, I never said there’s anything wrong with Gucci. I just am implying that if you are ultra wealthy, you are not flaunting your wealth because that will get you got.

@tranceporter7426 4 ай бұрын

This is very true. My wife and I live well below our means and have everything paid off.

@beth3535 4 ай бұрын

Financial focus hit me very late in life, though I was always trying to maximize my 401K. Even retired and on SS I have an hourly job (which I enjoy) and currently contribute 50% to my 401K. The balance (after tax) leaves me with ample spending money and sinking funds for house improvements. I’m still careful and do a lot that costs me nothing. My hobby is doing better …

@leonhenry4861 3 ай бұрын

I was 39 when I started, so probably older then you, better late than never

@JohnSmith-qe6fb 4 ай бұрын

I wish I had a problem with making 6 figures and spending it. Currently at 70k with kids and its not easy!

@fogrunr5075 4 ай бұрын

I remember when I was 21, and my wife and I together made $25,000 with a newborn son.

@zishanzahid1138 4 ай бұрын

Hang in there, your not alone

@marcbateman754 3 ай бұрын

Better than making only 20k

@IamAWESOME3980 3 ай бұрын

I remember remaining virgin without friends and social life. I made 130k a month and a 200k saved up by age 27

@Mellow429 4 ай бұрын

Firsr gen american. Blue collar governemnt job full benefits. Community college. Most of my friends dropped out of college have about 20k of college debt wasted time. I started on cop cars, then diesels, Now working on e buses bc electric vehicles are the future. Have a 401k w 15% rate of return(literally chose random disbursements lmao). No 401k match just what im putting in. All benefits. Job security. Only high value thing i have is my 2016 4r that is kinda above my needs but gotta find a way to enjoy doing what you do at some point (car camping, wheeling, etc)

@fromsarahjolie 4 ай бұрын

This video is so good. So so good.

@VincentChan 4 ай бұрын

Thank you so much! Did you learn anything new from it? :)

@yosefitche 4 ай бұрын

That saving is worth more than the sum of its parts.

@barbarar5869 4 ай бұрын

I won't feel bad for those that have been smart enough to get a job that pays 6 figures but not smart enough to understand that you don't have to keep up with the Joneses. I can understand this behavior from younger people, but after your mid-30s there really is no excuse. If they are happy living this life of debt and extravangance they can't afford, they I am happy for them.

@kinglionheart50 4 ай бұрын

At my first post-college job, I earned 40K. Now I earn 160K. I improved my lifestyle with a new house and used cars in-between but overall I have not changed my routine. I still mostly make my own meals and rarely buy new things. So I never had issues paying my bills and am saving plenty. I still look back at my life before and can't believe I lived on only 40K.

@c7042 4 ай бұрын

I am more than comfortable with $263K invested. I'm retired but still invest for the kids/grandkids now. I live on about $10K/year and not feeling deprived. I made about $45K/year when I retired 16 years ago. My older son is an electrican and makes over $100K/year. He seems to have absorbed my attitude though. He still drives a beater car like me. He only perhaps overspends for his twin daughters.

@jared19882 4 ай бұрын

Homeowners insurance, property taxes, bills, food. How you living on 10k a year lol

@c7042 4 ай бұрын

@@jared19882No debt; self insured on house; taxes homestead exempt; utility bills $309/month; car insurance $69/month; internet, $45/month; phone 15.14/month; charity $90/month; auto expense $40/month; don't eat out ever; which leaves $265/for food less than I spend; I live in Nebraska; Income is $39K+/year lol back

@thispersonrighthere9024 4 ай бұрын

i have no idea how people who have kids are coping. the older i get, the happier i am that i chose to stay CHILDFREE.

@Mysteri0usMem0 4 ай бұрын

its the same concept olin the video, having kids will bring additional costs but you can also control how much you spend on them. if you are smart then buying them only the necessities should not be too difficult. think about it the people that have the most kids are sometimes financially unstable so if they can do it someone who has disposable income should allow you to still be in control of your finances even with children. i think…

@yosefitche 4 ай бұрын

Hopefully one day you’ll realize that having children is priceless.

@thispersonrighthere9024 4 ай бұрын

@@yosefitche for you, not me.

@michah321 3 ай бұрын

@@yosefitcheI opted not to. I'm very happy

@IamAWESOME3980 3 ай бұрын

You need dual income for kids

@SF-fb6lv 3 ай бұрын

TIL in Japan, houses are not good investments; they depreciate and deteriorate rapidly. Look it up. I was blown away...

@fredm1 4 ай бұрын

Completely agree. The current state of the economy is unduly difficult for most of us. Was used to buying and holding assets, but with the current economy and inflation catching up to my $210k portfolio, it feels tough to do. My biggest concern is life after retirement, honestly.

@aureliobjm 4 ай бұрын

The government has let us down; just buy gold with it. Or hire/ work with a good market strategist. Youre safer that way

@josephbush 4 ай бұрын

I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.

@georgeh.5126 4 ай бұрын

@josephbush Do you mind sharing info on the adviser who assisted you?

@josephbush 4 ай бұрын

She's known as a 'Heather Lee Larioni'. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.

@georgeh.5126 4 ай бұрын

Thank you for sharing. I just scheduled a phone call with her. She seems proficient considering her résumé.

@theYoutubeHandle 4 ай бұрын

that's not true, assuming 10% return, you would need 1mil to earn 100k. So having 100k income is like having 1mil net worth. The difference is the income goes away when you lose job or retire.

@DioDiablo702 4 ай бұрын

If you invest in dividend stocks compound interest will ensure you don't need to come up with the 1mil yourself. In reality you're coming up with half to 3/4th depending on your portfolio.

@leonhenry4861 3 ай бұрын

@@DioDiablo702yeah but that takes 30 years, who wants to wait that long 😂

@Travelingwithabbc 4 ай бұрын

It's interesting learning how certain things that were not hard to get growing up, to other people that was a sign of wealth. I would love to see a video of what many of us thought "what being rich buys" as kids. I had my nieces one day asked me if I was rich? I was confused and asked her why she said that? She told me, every time they come to my place, they eat stuff their parents can't afford on a regular. I had to explain to her, making an income meant for 1 person can not feed a family of 5. I didn't have to spend money every day, but her parents had to

@sfrealestatedealmaker6001 4 ай бұрын

“Income inflation” is also known as “stupid” 😂

@davidsmind 4 ай бұрын

Lifestyle inflation doesn't really exist. Inflation, however, does. Companies are making larger and larger margins.

@Steven-xf8mz 4 ай бұрын

Income doesn't equates to wealth, but also wealth doesn't mean anything if you can't live a little either. People wish to live well when they have money, but if your wealth is mostly generated thru saving by living like you're poor, then what do you really have to show for it? Consumption in moderation is important, your body and soul needs the recharge as well. As your income grows, you should treat yourself better, it's a part of motivation and goal you give to yourself.

@twystedhumour 4 ай бұрын

You're mistaken. It's "having income doesn't equate to being wealthy," but it does mean that you are creating wealth.

@leonhenry4861 3 ай бұрын

Spot on

@leonhenry4861 3 ай бұрын

@@twystedhumournot if you’re spending said income

@autobotdiva9268 4 ай бұрын

we have 16 new $300k starting homes with raggedy d.r. horton and they are FULL but dont see many uhaul or furniture vans coming.

@timgibney5590 3 ай бұрын

They are investor air bnbs

@kidneycarecoaching3766 4 ай бұрын

They must live in the most expensive cities or high student loans would be my guess..

@RileyOutside 4 ай бұрын

Watching videos like this as a Canadian is a reminder that Canadians make less and pay more. (Average income US in 2023 was $59,384 (or $80,140 CAD). In Canada it's $63,181 ($46,817 USD). We also pay way more tax (for good reason, but it still hurts). Just interesting.

@MrBlack-wt5er 4 ай бұрын

Bankruptcy over medical bills, divorce, maybe "child support" which goes up to 80% of your net income in "New York" student loans ect.

@CharleneCong 3 ай бұрын

I've noticed this among my friends in finance too. After 10 years working in wealth and asset management, where most of us make a good six-figure salary, I was surprised during a chat with close friends about our savings and investments. Only one friend had about $300k, and most had less than $100k saved after a decade in this well-paying field. It's a wake-up call that no matter our income, we must manage our money better. Loved the video!

@gamereditor59ner22 4 ай бұрын

Interesting....🤔 So, by spending wisely, pick a decent place to live, keep track of spending, and know what can benefit me in the long run. Am I saying it right? Great video and keep it up!😎👍 Edit: Can someone go without using a loan for long time?

@asemibase3697 4 ай бұрын

Unless you are willing to pay cash for a 20k plus car or a 300k plus house you will absolutely need a loan. The very wealthy don’t even use their own money anymore

@Mesaaaaaaaa 4 ай бұрын

Getting increasingly difficult to get by without credit but it is doable. Not having loans of course means paying for things up front, so if it would take you 15yrs to save up enough money vs a 30yr mortgage to get in today, up to you if it's worth it. Leverage can be useful, saving up hefty down payments to lessen your monthly burden if financing is used.

@epermute 2 ай бұрын

The trick is to have a budget. Don’t inflate costs as you earnings rise. Focus instead on saving not sounding more. My living expenses have generally declined as my income has risen.

@FLAC2023 4 ай бұрын

Most doctors have no pay raise in 15 years... making $250k average per year... not much to brag about

@mrguiltyfool 4 ай бұрын

High income higher usually lives in hcol area so it cancels out. Making 100k in California is different from making 100k in TN

@fogrunr5075 4 ай бұрын

So my all-inclusive rent is $300 less than the national average was in 2010. And it's 2024.

@splatoon_octo 4 ай бұрын

The internal adverts are effing annoying dude.

@DioDiablo702 4 ай бұрын

People need to make sacrifices and live below their means. If you can't control your urges you don't deserve the high income. You can't handle money and don't want to build wealth properly. The poor who are financially responsible will become the new rich.

@otrebla8944 4 ай бұрын

Deserving a high income is not related to controlling one's urges. Deserving high income is related to one's skill set.

@DefenestrateYourself 4 ай бұрын

@@otrebla8944 or being a trust fund baby / winning the birth lottery

@anthonychi5781 4 ай бұрын

Bro, your google ads are Grant Cardone. How ironic.

@cryptojuan5897 4 ай бұрын

My home mortgage = 0 - so I have FU $$ and I don’t have A Linkedin

@rebeltheharem7028 3 ай бұрын

Don't spend at or above your means. Always spend below your means. I can't stress this enough.

@trigun442 4 ай бұрын

My father as an immigrant did his best to feed my mom and my 2 siblings. At $42,000 a year, he was able to do it just right for a family of 5. Sure we didn't live a fancy life but we survived. We had 2 brand new vehicles, a 3 bed room apartment, we'd be able to dine out here and there and have a little bit of leisure. I don't understand how people cannot manage their financial stability making well over $100,000 salary, let alone living by themselves or with a 2nd or 3rd person. As I got older, I knew how it is to fully develop financial literacy as I've endured the harshness of what my family went through in life. That lesson paved way towards growth and understanding of how to handle my money correctly. Now with my wife and I having a house hold income of a little over $200,000, we own a real estate, 2 brand new vehicles, a time share and we are currently renting a condo unit, going on cruises eating out almost everyday and living a pretty lavish life. We did it right.

@Jbridge621 4 ай бұрын

Every $100 you put in your IRA at 20yrs old today equals $3,192 at retirement with standard 8% annual return. Remind yourself that every $100 you don’t save is worth a lot more than $100. Knowing this is the difference between wealthy and rich people.

@LOAisMagic 4 ай бұрын

And this is why the government could care less about inflation. They know us wage slaves will find ways to figure it out. Let’s hope small business owners, comm and residential real estate, and corporations start seeing profit loss. That’s when we may see some relief as they can lobby!!!

@FadiGamingRP 4 ай бұрын

as i make more, i save more, i save like 90% of my yearly income now

@ViceCoin 4 ай бұрын

Keeping up with Joneses.

@IamAWESOME3980 4 ай бұрын

@leonhenry4861 3 ай бұрын

That’s why the rich get richer because rich kids parents can’t shoulder the bill

@IamAWESOME3980 3 ай бұрын

Rich kids also have better educations and skills tho. It is not pure nepotism.

@ytguy726 4 ай бұрын

story of my life

@D._.3NO 3 ай бұрын

I think you can if you live in a third world country instead, like for instance somewhere in the Caribbean. I’m referring to living off 60K per annum with 0 Student loans a cashflow business and great credit score that come with benefits.💁🏾‍♂️