If You Have $5,000 In The Bank - Do This ASAP
Published: 2024-05-12
Status:
Available
|
Analyzed
Published: 2024-05-12
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A minimum of $2,000 should be saved for financial emergencies.
"At the very bare minimum you need to have at least $2,000 saved up in a savings account to protect you from an emergency."
Pending
Target emergency savings between 3 to 12 months of expenses, adjusted for risk tolerance.
"then you want to create a goal for yourself to save somewhere between 3 months and 12 months worth of expenses in your savings accounts you do not want to save less 3 months worth of expenses and you don't want to save more than 12 months worth of expenses and you want to be somewhere in that range depending on how kind of your risk tolerance is"
Pending
Savings accounts typically yield very low interest rates, around 0.01% to 0.5% annually, even with online banks.
"your savings account is going to pay you somewhere in the range of 0.01 % a year in interest to somewhere like 0. let's say 5% a year in interest if you are lucky and this is probably with an online bank"
Pending
Debt typically incurs interest costs ranging from at least 3% to as high as 25% annually.
"your debt is going to cost you at least at least 3% a year unless you got a very good rate on your mortgage but somewhere between 3% a year so let's say 25% a year"
Pending
Paying off debt offers a guaranteed return on investment.
"the nice thing about paying your debt off early is you get a guaranteed return on your money"
Pending
Use cash savings to pay down high-interest debt (like credit cards) as it yields a guaranteed return and prevents enriching lenders.
"you want to take this cash that's earning you nothing and use it to pay down this High interest debt because this High interest debt is making your credit card company extremely wealthy"
Pending
For low-interest debt (mortgages, student loans), investing may be more beneficial than aggressive debt payoff, if risk tolerance allows.
"if you have low interest debt something like a mortgage or student loans it's not as urgent for you to take all of your extra savings and pay down your debt as fast as possible because now it might be more beneficial for you to invest your money if you can handle the higher risk because maybe you can get a better return there"
Pending
Investing is the primary method for wealth creation and maintenance, turning money into a tool to generate more money.
"investing is how wealthy people get rich and it's how wealthy people stay Rich because now you're using your money as a tool to go out and attract you more money"
Pending
The ultimate goal for wealth building is to replace active income with passive income generated by investments.
"what every wealthy person strives to do is they want to replace their active income the income that they get from their job or their business with their passive income which is the money that their money makes them"
Pending
Long-term investing is defined as a minimum of one year, but ideally 10 years or more.
"when I say longterm I mean at the very bare minimum of one year but most of the time when we talk about long-term investing I'm talking about 10 years plus"
Pending
Crowdfunding platforms now allow investment in real estate with significantly less than $100,000, potentially as low as $1,000.
"there are new crowdfunding platforms on the internet which let you invest in real estate without having to go and buying a full property so now you can invest in real estate with way less than $100,000 I mean you can invest in real estate online or get exposure to real estate Investments for like $1,000"
Pending
Investing in education, such as classes on real estate or stock market investing, can increase earning potential.
"start taking classes on how you can earn more money maybe you want to invest in real estate take a class on that maybe you want to invest in the stock market take a class on that"
Pending
Recommended life insurance coverage is a minimum of 10 times your annual salary.
"typically when we talk about how much life insurance you need you want to have a minimum of 10 times what your salary is so if you make $50,000 a year you would probably want to get a half a million dollar policy"
Pending
A $1 million life insurance policy can be obtained for under $30 per month for a healthy 30-year-old male.
"life insurance doesn't have to cost that much money like if you are a healthy 30-year-old male you can probably get a million doll life insurance policy for less than $30 a month"
Pending
Renegotiating bills by removing unnecessary services (like phone bundles) can save approximately $35 per month.
"so I was paying for cable internet and phone even though I didn't need phone and it was cheaper for me to get rid of phone so I stopped paying for phone and now I save like $35 a month just because I called and asked"
Pending
Implement a 24-hour waiting period before making non-essential purchases to curb impulse buying.
"follow the 24-hour rule if you go to the mall you find a sweater that you like and now you want to buy it and you see that it's 70 bucks well before you go out and buy the sweater just give yourself 24 hours to think about it"
Pending
Selling unused items, including potentially a car, can generate immediate cash.
"find ways to sell it and turn it into cash and that can also include your car"
Pending
Eliminating a $700 car payment frees up funds that can be invested to build wealth.
"and now you don't have to worry about the $700 a month payment and you can take the $700 and work to invest that money that will actually make you wealthy"
Pending
Freelancing websites like Fiverr and Upwork offer opportunities to offer services and earn money.
"there are websites on the internet like fiverr.com and upwork.com I am not endorsing any of these sites they're not paying me to say this but there's a bunch of freelancing sites on the internet where you can go and just offer some of your services"
Pending
Prioritize the lowest unit price when purchasing items, especially those used regularly, as it can lead to long-term savings.
"take a look at the unit price of things that you buy because a lot of stores now are required to put that unit price of an item on the display that way now if you're going to use something pay the lower unit price"
Pending
Avoid fees such as ATM, overdraft, and late fees, which can significantly add up.
"stop paying ATM fees that $4 fee every time you go to pull cash out of the ATM will start to add up stop paying overdraft fees Banks love it when you spend all of their money because now you got to pay $35 in a bank account where you don't have any money to begin with not only do you have to fund the bank account out again but now you got to pay the overdraft fee stop paying these fees stop paying the late fees"
Pending
High-yield savings accounts can offer interest rates of 4% to 5% on FDIC-insured banks.
"you have high interest savings accounts that are paying 4% sometimes even close to 5% in interest on an FDIC insured bank"
Pending
M1 is a platform designed for passive investing in the stock market through ETFs and stocks.
"M1 is a super easy to use platform that can help you passively invest your money into the stock market"
Pending
Distinguish between 'rich' (appearance, possessions) and 'wealthy' (financial freedom, time to do as one pleases).
"understand the difference between becoming wealthy and being rich now I know some of this is just syntax but when people talk about being rich a lot of times what they talk about is your appearance the way you look having the nice cars having the nice watches having the nice home that's looking Rich being wealthy is more about being free having the time to do whatever you want"
Pending
In society, producers are rewarded while consumers pay the price; becoming wealthy requires shifting to a producer mindset.
"the reality is we live in a society where the producers are the ones who are awarded and the consumers are the ones that pay the price so if you really want to become wealthy you got to understand this shift and you got to start being a producer"
Pending
If dissatisfied with income, take action by acquiring new skills, taking a new job, starting a side hustle, or launching a business.
"if you're not happy with the amount of money that you're making you got to stop complaining about it and you got to start doing something about it if you don't have the skills and you don't want to go back to school or if you don't want to learn a new skill then maybe you got to take on a new job maybe you got to learn a new side hustle maybe you got to start a side business"
Pending
Financial well-being depends equally on how much money is earned and how that money is managed and spent.
"there's also a spending issue there's two sides of the coin it's how much money you make and it's what you do with the money you make"
Pending
The principle of 'paying yourself first' involves saving for emergencies and investing to grow wealth.
"what I mean by that is you are saving some of your money for an emergency and you are investing some of your money that way your money can grow and make you more money"
Pending
Avoid financing purchases that do not generate income.
"no more financing anything that does not pay you"
Pending
The longer money has to compound, the more it grows.
"the more time that you have to invest your knowledge is going to compound your money is going to compound"
Pending
Payday loans can have an APR close to 400% due to high fees on short-term loans.
"this is a 15% interest that you're paying on a twow we loan if you advertize this loan this $500 that you borrow gr over the course of a year with these types of fees that means actually the APR on your loan is close to 400%"
Pending
It's crucial to save at least $2,000 in an emergency fund to protect against unforeseen events.
"you have to figure out how you can put aside $22,000 in your savings account to protect you against emergencies"
Pending
Canceling Netflix saves significant time (two hours daily) that can be reallocated to more productive activities.
"the reason why I want you to cancel your subscription is not so you can save $10 or $115 a month or however much it is but so you can save two hours of your life every single day"
Pending
Utilize free resources like educational YouTube videos and podcasts to enhance financial knowledge.
"start watching educational videos on YouTube start listening to educational podcast because these things are not going to cost you anything else you're already watching this video that's a great first step"
Pending
Invest in educational books covering topics like money management, business, and personal finance.
"start spending a little bit of money and when I say spending a little bit of money I mean start reading books and not just reading any book start reading educational books"
Pending
Many people earn more money solely to acquire more material possessions, perpetuating their financial situation.
"most people are working to earn money to buy more nice things which puts you in the exact same situation which got you here in the first place"
Pending
The home one lives in is primarily an expense for living and making memories, not a true asset for wealth generation like a rental property.
"the home that you live in is really not a true asset because why are you buying the home to live in I mean you're not buying this home to make money you're buying the home to make memories"
Pending
A significant portion of early mortgage payments goes towards interest for the bank, not principal repayment.
"more than half of your monthly payment is going directly into your Banker's pocket with interest because your mortgages are front lorded"
Pending
Starting investing early allows for greater compounding of both money and knowledge over time.
"the more time that you have to invest your knowledge is going to compound your money is going to compound"
Pending
Purchasing brand-name items is only an investment if one is being paid to wear them (like influencers); otherwise, it is a personal expense.
"if you are an influencer and you're getting paid to wear the Gucci that's an investment for you if you're not getting paid to wear the Gucci it's not an investment for you"
Pending
Prioritize addressing large expenses like rent, car payments, and housing over minor daily purchases like coffee when seeking financial improvement.
"where are the bigger money questions is it Starbucks that's keeping you struggling financially or is it a bigger question is it the expense of a part apartment that you have is it the expensive car that you drive is it these $50,000 questions or is it the $5 a day question"
Pending
A simple rule for affordability: if you cannot purchase five of an item, you cannot truly afford even one.
"if you cannot buy five of them you cannot afford one of them"
Pending
Wealth is typically built through business ownership, stock market investing, or rental property investments, not solely by paying off a personal home.
"wealthy people become wealthy because they build a business or because they buy a business or because they invest in stocks or because they invest in rental properties"
Pending