Get Rich at ANY AGE: The Plan for Your 20s, 30s, 40s & 50s | TWO HOUR MARATHON

You have two choices in life. Number one, you can track the price of tomatoes and Topo Chico for the next 60 years. And maybe, just maybe, you will accumulate enough to take a vacation someday. Or option two, you can get these three numbers and three decades right, and you will never have to worry about the price of russet potatoes ever again. Do you want to know what these strategies are? I'm going to show you in this video. So let's talk about how to catapult your net worth in your 20s, 30s, and 40s, because each decade may require a totally different strategy. Your 20s. The goal here is to build good habits, automate, and get compound interest working for you. I know a lot of you think you want a dog. No, you don't. You want compound interest. That's your new best friend. Your 20s are not about being perfect. They are about getting started. This decade is about exploring, trying to discover what you like, what you don't like. What do I want to do with my life? What am I interested in? How much tequila can I drink on Taco Tuesday and still show up to work within business hours? You don't have to know all the answers, but you do need to find something that you enjoy and you are good at, and that provides the right level of compensation for you. Again, you don't want to just be aimlessly wandering around. Hey, you're going to make mistakes in your 20s. Who cares? I made mistakes too. But the biggest mistake is doing nothing and waiting until your 30s, especially when it comes to investing. Our natural inclination is to say, I'm going to wait until I have real money to start investing. But counterintuitively, that's actually the worst approach to take. You start off small in your 20s with something like $50 a month. You're going to build the habit that it is normal to invest, which is incredibly important. Because it's really hard to build that habit later. And that $50 a month actually starts compounding, turns into a lot of money later. So when you do start to invest more later in your 20s and 30s, you are already building on a foundation of great habits and a pretty good amount of cash. For example, let's say you contribute $200 a month to your investments starting at age 25 and you stop at age 35. You don't invest anymore. You just let that money sit. Invested, you will actually have more than someone who starts investing at 35, same amount, and invest for the next 30 years. That's right. Somebody who invests for just 10 years early in life can have more than someone who invests for 30 years if they wait just a decade. That is the power of starting early. That's the beauty of compound interest. And that's why I'm sitting here screaming at a camera right now. So you finally listen. Stop eating horrible food from Arby's and actually say, you know what, I'm going to automatically invest every single month. Now, here are the key money moves you should be making in this decade. Automate everything. On a daily basis, we face way too many choices. Should I save more? What should I cut in my budget? Is asparagus good? I don't care about any of that shit. With so many decisions, so many choices to make, the danger is you do nothing with your finances and instead spend all your time watching Love Island. Here's what you do instead. Automate your finances. This eliminates analysis paralysis. It puts your money on autopilot. How do you do it? Set up automatic contributions for your 401(k) and/or your Roth IRA. Automatically direct part of each paycheck into your savings account. Put bill payments on autopay so you're never accidentally late on payments. Doing this takes a few seconds now. It is extremely valuable in the future. If you want to know how to automate everything down to what day to automate it, Get Chapter 5 of my book, I Will Teach You to Be Rich. Next, invest even tiny amounts. Please remember that starting small is better than waiting until you think you have enough. The sooner you start, the more money is going to compound and snowball over time. Now, if you don't know what to invest in, one of the things I recommend for my family is something called a target date fund. It's low cost. It's diversified. It automatically gets more conservative as you get older. You set it once, move on with your life. How do you find a target date fund? You go to any low-cost brokerage— Vanguard, Fidelity, Schwab. You pick the target date fund with the year that you plan to retire, usually around the age of 65. So if you're 25 now, you would pick the Vanguard 2065 fund or 2070 fund. That's it. No guessing, no day trading, no headaches. Next, ignore the noise. If you find yourself on a subreddit called WallStreetBets, you have taken a very wrong turn in life. There's a lot of noise out there, a lot of people telling you to day trade and buy whole life insurance and all kinds of crackpot nonsense. The best thing you can do is focus on what you like, what you're good at, and automatically invest in low-cost, long-term investments. It's very tempting to be endlessly chasing the next fad, but a lot of people end up chasing the next big thing for 25 years and have nothing to show for it. Next, build skills. Y'all need to actually get some skills. Sitting around reading Reddit, posting about reality TV. Oh, I'm swiping on TikTok. I'm so productive. We all know it's bullshit. Yeah, that's fun. I don't mind it. But what are your skills that you are bringing to a job to increase your earnings, to make more money, to take awesome vacations and invest and have a great life? You want to learn how to do it? Let me show you some skills to learn. Learn how to negotiate. You don't have to just accept the salary that a company offers you. Make it a conversation by coming to the interview table prepared and knowing your value. Learn how to manage your money. This doesn't mean agonizing over the price of Starbucks coffee. Too many people tell me, "Oh, I manage the money day to day." I go, "What does that mean?" They go, "I make sure the bills are paid on time." That's not managing money. That's playing small, wasting your time doing something a computer could do more efficiently than you. Managing your money means learning to spend more than you make, yes, but also learning the skill of spending money on the things you love and learning how to invest. Then learn how to grow your income. Your income is a skill, and people who want to make more money treat that as a skill. If your day job is your only source of income in your 20s, fine. That's how it is for a lot of people. But there are also ways to make more money, such as taking the skills you already have and starting a side business. And by the end of your 20s, here's a checklist of the things you might want to aim for. You've automated your finances, including your bills, savings, and investments. You started contributing to your retirement accounts, such as a 401(k) and a Roth IRA. You focus on income skills, not hustle culture. Ban that word. You've started using my conscious spending plan, and you know your 4 key numbers: fixed costs, investments, savings, and guilt-free spending. Now, the amount you spend on each category will depend on your fixed expenses and your salary, but ideally, fixed costs should make up 50 to 60% of your take-home pay. Stay out of high-interest debt like credit cards and aim for a high credit score. Now let's get to your 30s. Your 20s are for trying things, for figuring out what you like, what you're good at. A lot of people bounce around. That's totally normal. But by your 30s, ideally you can commit because bouncing around becomes expensive. Your 30s is a decade to double down on what's working. Now, I hope you found that in your 20s, If you haven't, that's okay, but I would make it a priority to find out the thing you love and can compensate you the way you want to be compensated and to do it fast. Now, please note, I'm not saying life always moves in a straight line. Sometimes we have a sick parent, sometimes we lose a job, sometimes our priorities have to change overnight. So this video is not meant to make you feel behind. It's to show you one very simple model of what could work. Adapt this advice for your own needs and don't ever let a video make you feel bad about yourself. So here you are in your 30s, but you don't feel like you've landed on the job or the passion. Here's one technique you can use. You can say, "I'm going to take this job and I'm going to commit to not leaving for at least 2 years. I'm going to become really good at it." Well, you basically need 2 years to get good at anything. So when I see someone applying to a job at our company and I see them switching jobs every year, I am very skeptical. It's basically an instant no hire for me. Why? Because in the past they've jumped around, so I know they're going to jump around again. If you are a job hopper, that means you are losing opportunities without even knowing why. What's worse is you're not even building enough expertise to really compound. Meanwhile, the people have committed to things since they were 22 or 23. By the time they are 32, they are deep into their careers. They're getting promoted multiple times. They're starting to earn serious money. They can see the lay of the land in a deeper way than someone who is just jumping around job to job. Now, this doesn't have to be everybody. Some people enjoy switching jobs a lot. You don't care what I have to say, fine. But here's what I would suggest as your North Star. Say this: I am going to build deep expertise. Deep expertise cannot be dislodged. It doesn't matter what somebody finds on TikTok. Deep expertise is valuable., and that is something to aim for. Also important in your 30s, learning the skill of increasing your income. Now, this can be learning to land job interviews and salary negotiations and make them work for you. This is about arming yourself with data and tools like Indeed, PayScale, Glassdoor to research salary ranges for similar roles and to go in prepared to these conversations. Think about which jobs, even which industries you're gonna work in strategically. Negotiate aggressively. Don't settle if you don't have to. Track and grow your net worth. You actually have to know what goes into it. Whether you use Rocket Money or my Conscious Spending Plan, free download, you should keep track of your assets and your debt so you have a clear picture of your finances. Increase your investment rate. This is so important and almost nobody does it. It doesn't matter if you're investing through a 401(k), an IRA, whatever. Make sure you take full advantage of compound interest by increasing your investment rate. As an example, I recommend every December you go into your investments and you increase them by 1% per year. So if you're putting in 5% towards your 401(k), next year make it 6% and so on. If you get a raise and you can bump your investment up even more, please do. Start saying no to things that don't align with your goals. Like when I was in college, I said yes to Jack in the Box crispy tacos because that's all we could afford. Now I say no, they do not align with my vision. So what are you going to say no to now? In your 30s, you actually start to earn a little bit of money. You actually can afford to make dumb decisions, but being able to selectively say no is what can put you ahead. Think about it. These are the kind of purchases where once you make them now, there's no going back. Like, for example, when I started flying business class, I knew once I'm flying that, I'm not going back. So I was very careful about when I created a money rule for myself that I'm going to fly business class on flights over 4 hours. I knew I have enough that I'm never going to have to go back. Be thoughtful. For most people, they make classic mistakes when it comes to buying a house or a car. Once you buy a house, you are probably never going to go back to renting. You are probably never going to want to go to a smaller house. Same with cars. You're not going to want to go from a BMW to a secondhand Honda. But also, if you're driving a BMW, get off my channel. I don't want BMW drivers on this. You're horrible at driving and horrible at parking. Leave. So let me give you a checklist of some things you should aim for by the end of your 30s. Grow your income 25 to 50% this decade, maybe more. Net worth 1 to 2 times your annual income. That depends on a lot of shit. Don't get mad at me and don't write me about that guideline. In fact, I might just delete this from the whole video. Next, invest at least 10% of your income Maybe more if you're behind. Be strategic with your big purchases. Do you really need a $75,000 SUV just for the kids? Aim for a 3 to 6 month emergency fund. Dial in your conscious spending plan and get a high credit score. And by the way, real quick, if you're getting value out of this and you haven't hit that subscribe button, do it now. Hit subscribe so you can learn the actual steps to take in your 20s, 30s, 40s, and beyond, including what to do with your money and how to spend it meaningfully. Your 40s. Now, the goal here: refine everything, remove the deadweight, pour fuel on what works. By your 40s, I'm hopeful that you've found a groove with your career, that your income is growing, and that your investments are actually really starting to take off. Your 40s are the perfect time to take a step back, see what's working, and analyze where you can improve. So here are some key money moves for your 40s. Audit your life. Take some time and zoom out. There comes a point where you can see exactly when somebody stopped listening to new music— me in the year 2000— and when they stopped adjusting the hem of their pants to stay up to date with fashion. Bunch of bros right now getting mad in my comments. Ramit, slim fit is actually coming back. It's actually more flat. No, it's not. Stop it. You're out of date. Now, why am I talking about this? Because in your 40s, it's easy to end up on autopilot. But it is such an amazing opportunity to zoom out and decide what you want to do with the next chapter of your life. So take a weekend seminar with your spouse, take a staycation, go on a solo camping trip. Whatever you choose, take some time first mapping out how far you've come since your 20s and be really candid with yourself. Give yourself a pat on the back. Hey, what do I like about myself? What have I gotten really good at? My career, my relationships, my life. And then be honest and constructive with your criticism. What do I not like? What are the areas that I need to improve? What are the things I want to change about myself, my relationships, my income, my house, all of it? This is not about beating yourself up. It's actually about taking an honest self-assessment, and that's why I always start with the things that are positive. Like, if I look at my own life from my 20s, I'm really proud of my fitness journey. That took so much work, so much internal work, going to the gym, working with trainers and nutritionists, and learning how this stuff works. I'm proud of my business. I'm proud of building a business with an amazing team. I'm proud of meeting my wife and building an awesome relationship where we spend a lot of time together. There are things that I need to improve too. Like, I have some people in the comments that I need to roast better. That is something that keeps me up at night. I haven't eviscerated you enough. But I'm coming for you 'cause I'm 43 and I got a lot more time on this planet. So what is it for you? Maybe it's, hey, I haven't been good about maintaining my relationships. I'm gonna commit to doing that in my 40s. So then get specific. How are you gonna do it? Well, I'm gonna text my friends. I'm gonna set up an annual trip that we go on together. Sometimes I'm gonna go to them. Sometimes they'll come to me. Sometimes we'll leave it up to chance, but I'm gonna build a system to make sure it happens. I did exactly this. I texted some of my friends recently. I said, hey guys, I want to spend more quality time together. It's important to me. I don't want our friendships to drift apart. I actually want us to spend a lot of time together. So can we do something? It actually made me nervous to say this because it kind of felt vulnerable. You know, a lot of guys don't send messages like this. What's crazy is within 3 or so months, I found myself in Wyoming with a couple of my friends. We went to this awesome ranch, and then just a couple weeks later, I was in Tokyo with a buddy of mine from college. Your 40s are the perfect time to take stock of where you have come. Same thing for your career and income. You know what? I haven't been really savvy about negotiating a raise. I'm going to learn how to do that. I'm going to get a mentor. I'm going to get a career coach. I'm going to join Ramit Sethi's Dream Job Program and learn exactly how to do it. Next, do an audit of your investments. Now, ideally, your investments have already had decades to grow and compound since you started small in your 20s. Now take the time to evaluate your asset allocation. This is also where automation becomes your best friend. If you read my book starting in 2009, how many of you read that book? If so, leave a comment below. If you did, you set your investments up in something like a target date fund or index funds. If it's a target date fund, it automatically rebalanced your portfolio based on your age. And that's awesome. That's what happens over time. But if you didn't, you may want to look at your overall investment strategy. For most people in your 40s, you have a lot of life ahead of you. So you probably do not need to become super conservative in your 40s, that's for sure. But you want to be looking at all of your accounts. Do I have some orphan 401(k) from some job that I need to roll over? Do I have money coming over here that's not being automated? You want to be thinking about how is your money being invested and just do a full audit. Remember, your 40s and 50s are your peak earning years for most people. You still want to prioritize growth, but you want to start looking ahead. Hey, am I on track for retirement? If not, I still have time to make changes. Let me do it now while it's easier instead of waiting for life to make it harder. Next, audit your spending. One of the most powerful exercises I do with couples on my podcast is I ask them to describe their rich life. And oftentimes they'll say things like, we wanna travel, we wanna go to the grocery store and not have to look at the price, we wanna be able to have a date night, that kind of thing. And then I say, Okay, show me in your spending where you are doing that. And they go like this. Very few people align their spending with their rich life. If you want to do a date night once every 2 weeks, show me in your calendar and your conscious spending plan where you have resourced it. If you want to travel, show me how you are automatically putting aside $250 a month for that trip you're going to take in December. Show me. What I often find is that a lot of us are spending a lot of money on things that are not part of our rich life. Most commonly, those are eating out. A lot of times people are spending a huge amount on cars they don't even realize. And of course, you've heard me talk about housing and all the phantom costs involved. Your 40s are an amazing opportunity to do an audit of your spending. And when you do this, you will quickly discover you actually can spend more on the things you love as long as you are cutting back on the things you don't. So do that audit. Next, set the stage for your rich life. Your 40s are a great time to step back and ask, what am I working for? I actually like to put my hand out like this and say, what do I get? I work hard, I save money, I invest. What do I get? And I want to be specific. For me, it might be, you know, I love to stay at beautiful hotels. So when I go to a hotel, I pick one based on where I want to go, not based on price. Okay, What is it for you? I want to be able to eat out once a week and not have to look at the price. Okay, cool. I want to send my kids to an amazing tennis camp. I want you to take the time to plot out your 10-year bucket list and to make sure that your finances are aligned with that vision. For example, in your 10-year bucket list, you may want to learn a certain language, or you may want to go hiking in the Grand Canyon. I don't know, whatever it is for you. Write it down and then pick one of those things and put some money behind it so you know exactly when you're going to do it and you guarantee that it's going to happen. By the end of your 40s, here's a checklist of things you should aim for. I want you to evaluate your net worth, your spending plan, your asset mix. Kill money leaks for things that are not part of your rich life. For a lot of people, it's eating out, it's fees, it's subscriptions, it's cars and houses that are not particularly important to them, but they just Slipped and bottom. Next, max out your tax-advantaged accounts or get as close as you can. Then get serious about your retirement timelines. In your 40s, you still have time to make dramatic changes and end up in an awesome place, but it gets harder every year you wait. Then a very clear line of sight on your retirement plan. And finally, this is really important. Enjoy your guilt-free spending. Now, here's the truth. Yeah, in your 40s, your net worth should grow. But what I really want is for your confidence with money to grow even faster. This is the part that a lot of people don't talk about. Yeah, your numbers should go up and yes, you should become more competent at managing money, but I also want your feelings with money to improve. Your feeling of control, of knowing exactly where you're going, of pride. Are you tired of playing defense with your money? Of always worrying that you've spent too much even for something as small as buying a tea? What if we could go on offense with our money? What if we could become so confident that we could feel good about spending on the things we love. That is what my money coaching program is all about. Every single month in the program, I'll show you how to automate your finances, pay off your debt faster, invest your money, and actually spend on the things you love guilt-free. You do not need another budgeting app. What you need is a proven system and coaching and a supportive community that gets you results. You'll find that in my money coaching program. Go to iwt.com/moneycoaching or click the link in the description below to join the program today. You're 32 and you think you're behind just because your net worth isn't six figures? Let me stop you right there. That is the wrong way to think about money. Googling net worth by age won't help if you don't know how to use those numbers. In this video, I'll show you what a healthy net worth looks like in every decade and exactly how to act on it. Your net worth is everything you own, like savings, investments, property, minus everything you owe, like credit card debt or loans. All right. Now that you know how to calculate your net worth, let's get into it. Your 20s. This decade is about getting smart. Now, net worth in your 20s is often a mess, and that is actually okay. When you consider student loans, entry-level jobs, maybe a few nights out at Taco Tuesday, most people can feel like they're barely scraping by. Or sometimes that they're in a hole so deep they'll never escape. And you hear people saying jokes like, "I'll be paying off my student loans until I die." But here's the thing. A lot of people feel really behind in their 20s, even though they might be doing relatively well. That's because nobody shares the messy stuff. You only see pictures of people going to Bali and looking at these cool views, but you don't really know how people's finances work beneath the surface. So let's take a look at some actual numbers to get an idea of where you stand. If your net worth is under $5,000 or even in the negative, you've got some work to do. Now, I want to pause here because it's really common for people in their 20s to have a negative net worth, especially because of student loans. And I get it. It can feel hopeless if you're in your 20s and you just calculated 3 numbers. You're like, oh my God, I have $26,000 of negative net worth. But just knowing your number, even if it's negative, is so helpful to make a plan to improve it. Moving on, around $12,000 puts you at the median for your age group. And if you are at $75,000 plus, that puts you way ahead of the curve. Now, as you can see, there's a huge range in your 20s. Consider why. Maybe you graduated from college with $27,000 in student loans. Maybe you didn't go to college and you got a job right out of high school. Each of these choices, or any choice that you made, can result in vastly different amounts of money in your 20s. Here's what I want you to remember. If you've got a few months of emergency savings or even if you are consistently investing in something like a 401(k), you are ahead of the game. According to Charles Schwab and Gallup, only about 44% of people aged 18 to 29 have any money invested in the stock market. That means people in their 20s are taking their most valuable decade and letting it slip away. Even if they had invested $50 a month, that would compound into lots of money later in life. And I'm going to show you those real numbers as you get older. Why? Well, in part because people in their 20s earn less and expenses are relatively high when you're young, but also because young people don't really think about money seriously until later, usually when they turn 40. They'll say things like, I don't make enough. I'll start later. This is all too confusing. Let me just be really honest with you. If you fall into this trap of saying, I'll deal with it later, that decision will cost you tens of thousands of dollars. The biggest financial mistake you can make in your 20s is waiting. So if you're in your 20s, here's where I would start. Number 1, make investing a habit, not a debate. Start with $25 or $50 a month. Send it to your 401(k) or your Roth IRA. And just set it and forget it. Even a small amount today will beat investing $200 a month later. That is the power of starting early. Number 2, track your net worth and where your money actually goes. Use a simple spreadsheet like my conscious spending plan. Number 3, surround yourself with people who want to get better with money. I really recommend you find one friend who is curious and you start talking about money. Now, keeping up with friends is expensive, but building with them and learning from each other is incredibly powerful. Number 4, pick 1 to 2 things you love spending on and spend extravagantly here. Then cut costs ruthlessly on everything else. That is how you can start to become intentional about your spending guilt-free. Number 5, stop chasing trends. Start building your foundation. You don't need obscure crypto tips or rate chasing or budgeting hacks. So cool app, here's a cool fucking app, look at my fucking app. I don't have any financial apps on my phone. I don't need them. I have 4 key numbers. I focus on them and then I get on with my life. Spend less than you earn, automate, invest for the long term, and then get away from your filthy computer that hasn't been cleaned in 6 months. Go outside and touch grass. If you can build the right habits now. Like automating your savings and investing, tracking your key spending, staying out of high-interest debt, you can set yourself up for decades of easy financial growth. And remember, in your 20s, boring is sexy. Don't try to beat the market. Just get in and start building your future now. Next up, your 30s. This is when you build systems, not just savings. Now, 30s can start to feel like a bit of a pressure cooker. You've got weddings, potentially children, the looming cloud of student loans, maybe casual guilt trips from your parents asking why you haven't bought a house yet. Meanwhile, your friends are getting new jobs, sometimes promotions. Sometimes they're posting all these cool pictures and you're wondering if it's normal to DoorDash sushi 3 times a week. Well, it's easy to feel behind, but let's actually zoom out for a second. In your 30s, If your net worth is under $30,000, you're below typical. Around $100,000 puts you at the median for your age group. And if you have hit $250,000 or more, that's quite impressive. But look beneath the surface. When was the last time you actually talked to your friends candidly about their net worth? How many of your friends even know what their net worth is? Too often, the only way we compare ourselves to our friends is to look at what pictures they're posting on social media. Wow, they took a 3-week vacation to Costa Rica. They went ziplining. They must be loaded. Maybe. Or maybe they ran up credit card debt to pay for it. Or maybe they have a side job where they earn $5,200 a month extra, which, by the way, you can use my Earn1K program to start. In your 30s, You need to learn how money works. And more importantly, you need to realize you're running your own race, not simply comparing yourself to others. If you're in your 30s, here's what I would focus on. Number 1, automate everything. Set up a conscious spending plan that funnels your paycheck into 4 categories: fixed costs, savings, investment, and guilt-free spending automatically. If you've been obsessing over every dollar in a spreadsheet, stop it. Get a life. And remember, it's time to build a system that runs in the background. That is how you reduce stress, stay consistent, spend less time on your money, and actually get better results. Number 2, max out your 401(k) employer match. This is free money. If you want to set this up automatically, read Chapter 3 of my book, I Will Teach You to Be Rich. Do not leave thousands of dollars on the table while agonizing over how much you're spending on avocado toast. Number 3, grow your more income. This is the number one financial lever you can pull. Learn how to negotiate your salary. Build high-value skills. If your income grows, that solves a lot of financial problems. Remember, there's a limit to how much you can cut, but no limit to how much you can earn. Next, increase your investments by 1% each year. This is amazing. Tiny tweaks like this compound massively over time. Let me show you what happens when you increase your investments by just 1% per year from age 30 to 40. This is how you quietly build wealth while everyone else is worrying and worrying and reacting to financial emergencies. Next, talk about money early and often. Whether you're dating, married, raising kids, you gotta have these conversations about money now because it's not just about math. Especially if you are married. It's about connection. You want to be rich in your 40s? Great. It starts with boring systems and consistent action, the kind that people don't usually brag about, but the kind that really works. You know what else happens as you get towards your 40s? You have a lot more to protect. Let's talk about protecting your future self, especially as you enter the next decade. Your 40s. This decade You take control or fall behind. Your 40s are extremely important. For most people, this is when they actually start paying attention to money. And this is when that abstract idea of retirement someday suddenly starts to feel real. Now, you might be thinking about college tuition. If you have children, you're probably going to start thinking about aging parents, your career path, potentially a mortgage. May be asking questions like, can I actually stop working someday? So let's take a look at some real numbers. If your net worth is still below $75,000, you've got some catching up to do. Around $220,000 puts you at the median. And if you are sitting at $500,000 plus, you are ahead of the pack and potentially in striking distance of real freedom. Now, I want to point out that $220,000 for the median is a lot of money. And that's a lot because of the things that you have done until this point. Savings, investing, all the things I talked about in your 20s and 30s. Because in your 40s, the invisible scripts from your past finally catch up to you. Maybe you coasted on a decent salary. You weren't struggling, so you figured things were fine. Maybe you assumed that buying a house meant you were set. Or maybe you just told yourself, like so many people, I'll figure it out later. Well, later is here. And now you're realizing that just getting by is not the same as being in control with your money. You know, a lot of people spend years reacting to bills and emergencies, but it's very rare to see people being intentional with their money. The good news is there actually is still time. You have a lot of time in your 40s And the habits of your past do not have to define your future. If you're in your 40s, here's what I would do right now. Number 1, calculate your crossover point. That is the moment where your investments will generate enough income to cover your lifestyle. If you have never done this before, it will completely change the way you think about retirement. Number 2, do a financial spring cleaning. Cancel your unused subscriptions. Check for overlapping insurance policies. Audit your spending leaks. You do not need to budget every single dollar. You do need to know your 4 key numbers. Now you can do this on your own or you can join my money coaching program, which I will link below. Number 3, talk about freedom. If you're in a relationship, this is a great time to get aligned. What does the next decade look like? What do you want your life to feel like when it comes to money? And how much will that cost? Number 4, talk about money. We talk about kids, we talk about travel, we talk about our favorite restaurant, but when was the last time you had real conversations with your friends about money? Hey, how are you handling student loans? Which bank do you use? Ask these questions. This isn't weird. It's a way to learn about money with the people around you. Number 5, switch from reactive to intentional. Don't wait for a financial scare to get serious. Be the one who takes the lead now before it becomes urgent. Now notice that these aren't just tactical moves. They are how you build real freedom in your 50s and beyond. Because the biggest regret I hear from people in their 50s is that they didn't start earlier. They ignored the clues in their 40s. Next up, your 50s. This is where you get strategic or you risk running out. In your 50s, the countdown begins. I'm not talking about the countdown to your death. I'm talking about retirement. This becomes a serious, very real deadline. If your net worth is under $125,000, you are behind and it's time to take action. Around $325,000 is the median. And if you are at $725,000 or more, you're in good shape and possibly within reach of early retirement. At this stage, you will find that people either have a well-oiled machine or they are scrambling to catch up. You know, they're panic Googling, can I retire at 60 with $100K? The difference is not about picking the perfect investment or being able to calculate PE ratios in your head. It's decades of consistent automation and important high-impact decisions. It's not too late if you make rapid, bold changes right now. In your 50s, you have access to some of the best best financial levers available. Catch-up contributions, tax optimization, estate planning. Used properly, these tools can make a six-figure difference in your outcome, sometimes more. But this is also the decade where a lot of people make massive preventable mistakes. They fail to adjust their investments. They often stay overly aggressive. They don't take advantage of catch-up contributions. They make tiny little changes Oh, maybe we should spend 2 weeks agonizing over our Hulu subscription. That's not going to change anything in your 50s. You need to make big, bold decisions, and you need to start thinking about things like estate planning. If you don't have a will, if your partner doesn't know about your account access, if you don't communicate about money, what happens if and when you get hit by a bus? Also, don't forget about the optimizer trap. There's a lot of people who have saved diligently, invested, but now they can't bring themselves to spend. Some of them have $1 million, $2 million, $4 million, $6 million saved, and they still feel guilty booking a vacation, freaking booking 3 layovers so that they can go across the country and save $26. What does it even matter? You spent $28 on a freaking bagel at JFK. They're terrified of spending money because somewhere along the way they equated saving with safety and spending with failure. That's not a rich life. That's just hoarding money. And you don't get any points for playing small. If you're in your 50s, here's where I would focus my energy. Number 1, max out every tax-advantaged account. That includes catch-up contributions for your 401(k), IRA, and if applicable, your HSA. You're allowed to save more, so take full advantage of that. Number 2, make a specific plan for your retirement. As you get older, You want to get really specific about exactly how much you need, when you're going to retire, and what life is going to look like. In your 20s, you can just be pointed in generally the right direction. Invest enough, you're good to go. When you're in your 50s, you really want to get specific about it. Sometimes you can do this yourself. Other people might want help, in which case it might make sense to talk to a financial planner. Just make sure you pay a flat fee or hourly rate, never a percentage. Percentage of your assets. Number 3, create a withdrawal strategy. Start planning how and when you will take money out for retirement. Don't wait until after you retire. Plan before. And this is the key to spending confidently and intentionally. Number 4, get clear on what rich means in this later season of your life. Where do you want to live? What do your days look like? Don't just focus on not working. Focus on what comes next. Number 5, simplify everything. Make sure your spouse, partner, children, loved ones know where everything is and what happens next. Look, some of you are not even going to make it to the end of this video. You better make sure the people around you know what to do when you croak. This is actually one of the most generous things you can do because in your 50s, it's not just about saving and investing more. It's about knowing how and when you will use your money. See, the goal isn't just to retire, it's to live well on your terms. And one mistake I see all the time, people love these videos where they are learning specific numbers and benchmarks, but they forget to subscribe. I post a new video every single week to help you master your money. So hit subscribe and I will see you in the next one. All right, let's move now to your 60s plus. The stage that people get totally wrong. You've worked, you've saved, you've invested. Now it's time to actually use your money. If you're in your 60s, a net worth around $375,000 puts you right around the median. In your 70s, it tends to dip a bit to $335,000. That makes sense. Am I the only one looking at that number getting terrified? $330,000 in your 70s? That's actually a scary number. Because it's not a lot of money. What are you supposed to do with $330,000 in your 70s when you're not making an income? A lot of people just want me to cut to the chase. How much do I need? Okay, you want me to tell you a number? I'll tell you a freaking number. Here it is. If I had to give you a number, I would say $1.8 million. That is how much you and your partner need to comfortably retire. Why? Because if you have $1.8 million in your portfolio, you can safely withdraw $72,000 per year, which, assuming you own a house, could be enough to have a very nice life. Now, the good news is if you're watching this before your 60s or 70s, you still have time. The even better news is if you start now and you act boldly, you can build up and accumulate money to live a very rich life. In an ideal situation, by the time you're here, you are finally using money to live life on your terms. Money's not meant to sit there and gather dust. It's there to be enjoyed. And yet this is where so many people freeze. They just repeat phrases like, "What if I run out? I can't spend that. It took me 30 years to save. I'll just give it to my kids." So they hoard. They underspend. They nickel and dime their retirement after decades of focusing on money and saving diligently. That's not financial security. That's fear disguised as being responsible with money. Here's the truth. If you've done the work, if you've built a solid foundation, if you know your numbers, if you can reasonably project how much you're going to have and leave a little room to spare, then it is certainly time to live your rich life. That might mean travel or family experiences or generosity. It might mean saying yes to the things you used to talk yourself out of. You were saving for someday. That day's today. You're safer now. So if you're in your 60s or beyond, here's what I would focus on. Number 1, put your withdrawal strategy into action. The 4% rule is a great place to start, but you've got to tailor it to your lifestyle. How much do you need each year? What are you actually going to spend it on? The goal is simple. Feel confident using your money, not guilty. And above all, don't run out of money. Remember, the time you have is limited. You have to start thinking about how to use it for the rest of your life. Number 2, simplify your accounts. Fewer accounts means less confusion. Consolidate where possible so that you and your loved ones can easily manage things. Number 3, update your estate plan. Make sure your beneficiaries, your will, your power of attorney documents are up to date, and talk about this openly with your family. Number 4, define your rich life in this chapter. Don't just default to more of the same. What do you want to experience in the next 10 years, 20 years? Who do you want to spend it with? Ask yourself this: What would make the next 1 year and 10 years of my life magical? Get ultra specific and then see how you can use money to make it happen. Which brings me to number 5: Spend with intention. Yes, you're actually hearing a money guy tell you to spend money. Take the trip, help your grandkids, support the causes you love. Tip generously. Use your money to create joy. Because while so many of us worry about running out of money, there's also the very real risk of never using it in the first place. You think you're behind on your 401(k)? Well, you are not alone. Today, I'm going to walk you through the most recent 401(k) data by decade from your 20s through your 60s and give you a brutally honest look at how Americans are actually doing with their retirements. And I'll show you exactly what to do if you're behind or way ahead. All the numbers you're going to see today come straight from the 24th edition of Vanguard's How America Saves report, which looks at the behavior of nearly 5 million people with Vanguard 401(k)s. In their study, they break down ages a little differently than we do here, but I've reorganized it so you can see exactly where you stand in each decade of your life. Let's be real. A lot of people in their 20s are not thinking about retirement yet. A lot of you are thinking about how to microdose and eat tacos on Tuesday because it's cheap. Retirement feels far away, like a future you problem. But this is exactly why starting now, even with small amounts, gives you a truly unfair advantage. Let's look at the numbers. The median 401(k) balance of people in their 20s is about $9,000. $9,100. Now, what do you think? Does that number sound high or low? I'll tell you that I think that number in general sounds low because let's say somebody is making $35K, $50K, $70K over the course of an entire decade. They only have $9,100. But think about it. Most people in their 20s have not yet made retirement a priority. That's okay. Some people have way more, about $24,800 on average.. But that average is skewed by a few people with huge balances. So it's more accurate to assess your own balance based on the median number. Now, what's really happening here is simple. You're just starting your career in your 20s. You're likely switching jobs. You're earning less now than you will later. And yet roughly 68% of people in their 20s are participating in their 401(k). That's actually better than you'd expect, but it still means that about 1 in 3 young adults is missing out on years of compound growth. But here's where it gets wild. If your company doesn't automatically enroll you, participation drops to just 44% in your 20s. That is shockingly low. That's less than half. And it's not because people don't care. People do care about money. It's because, like flossing or like mobility workouts, Retirement planning is something that most people just don't get around to. It's for something to do later. They think they have plenty of time. This is also why automation is life's greatest cheat code. If you automate your money, it is way more likely you will save, you will invest, you will end up with way more money than you ever thought possible. This is why I always talk about automating your money. And this is the decade you could come can completely change the trajectory of your financial growth. Even small automatic contributions starting in your 20s— I'm talking like $50 a month— can outweigh saving 5 times that amount later in life. This is not just about how much you invest. It's about when. Time is your greatest advantage. This is why I'm obsessed with automation. Take 30 minutes to set it up once and you will outperform well over 90% of the people who never bother. So if you're in your 20s, here is your playbook right now. Number 1, make sure you're enrolled in your 401(k). If you don't have access to one, then you can open up alternative options like an IRA at low-cost brokerages like Schwab, Fidelity, or Vanguard. You have access to things like a target date fund. Number 2, automate small contributions to your account now. Use percentages of your pay so that as your pay increases,, you will automatically be investing more. And if that feels out of reach, start with 1 to 2% of what you make. Although I think in your 20s you should be targeting 5 to 10%. Number 3, if you have access to a 401(k) and you can afford to, contribute enough to get your full employer match. This is essentially free money that will help your investments grow a lot faster. Number 4, invest your contributions in a target date fund if you don't want to micromanage. A lot of you freaks think you want to sit there and look at different asset allocations. Micromanaging things every single month based on the economy. You're not good at this. In fact, you suck. Get in tight on this. You suck at asset allocation. You don't even know what rebalancing is. What's that word? Rebalance? You never heard that word in your life. Rebalance. Forget it. A lot of people should just go with the target date fund. But if you want to have your own set of index funds, God bless. Number 5, focus on consistency, not perfection. Look at me. I'm consistently telling you you suck at asset allocation. I've been doing it for 21 years. I'll be here the next 21 years. Most people give up on investing because they think it has to be perfect. Perfect timing, perfect fund, perfect amount. Oh, stars need to align, auspicious date. No. The people who stay consistent, even with small amounts, end up with hundreds of thousands of dollars more. All right, you set up your 401(k) and you are investing consistently. $50 a month, $100 a month, $500 a month. Good. But now comes the chance. In the next decade where you can build real momentum or you can just coast. This is where your actions make or break the next 30 years. In your 30s, the median 401(k) balance is about $28,100. The average is about $73,100. You see that gap? The people ahead are those who started early, stayed consistent, probably made really big incomes, and made investing a priority. That's the decade where you're probably earning more than you did in your 20s, probably enjoying life a little bit more. But as you start enjoying your money more in your 30s, it's important to also keep investing a priority. That is how you make sure you stay on track, steadily building on that momentum in your 20s and still enjoying life. Please remember, I'm not the freaking Noodle Scrooge sitting here telling you you got to get cheaper noodles. It's so expensive. If you compound that over 75 years, you actually spend an extra $37. No, I want you to earn more. I want you to spend more. I want you to have an amazing rich life. And I also want you to save and invest more. So let me give you your playbook in your 30s. Number 1, make sure you are now contributing enough to max out your employer match. Again, this is essentially free money. Leaving it on the table is like taking $1,000 or $5,000, just saying, fuck you. No, you want that money, invest it. Number 2, aim to invest 5 to 10% of your salary. That's like, remember when you used to do the sit and reach in elementary school and you sucked at it? I know because I did. And then like somebody would be like, oh, that's okay. You're trying so hard, little skinny Ramit. That's fine. You did a good job. What somebody should have been like, You're not good at this. You need to stretch every day so next year you're not the lowest, worst in your class. I never thought the President's Council on Physical Fitness would draw me to tears as a 43-year-old grown man, but it did. The point is, sometimes you need someone to tell you the truth. Aim to invest 5 to 10% of your salary? Okay. How about a little higher than that? How about 11%? How about you actually increase that by 1% every single year? Which brings me to point number 3. Increase your investments by 1% every year. Only 16% of people manually increase their investment rate in 2024, compared to 29% who had an auto-escalation feature built into this plan. Do you know what any of the words I just said mean? Do you understand any? Probably not. Let me explain it to you. Most people are not going into their accounts at some point in the year and escalating the amount they are contributing. They're not doing it. They're like, what the fuck is this guy talking about? Escalation? I just like Cheetos. I'm trying to eat. I got my subscription, Netflix, so cool. Listen, even a 1% bump can mean thousands of dollars more at retirement. Let me show you what happens when you increase your investments just 1% from age 30 to 40. So don't overlook tiny tweaks like this. They compound massively over time. And this is how you build wealth without having to make a huge sacrifice in your lifestyle. Number 4, use every bonus or raise to bump up your contributions. What are you guys doing with your raises? You got a nice raise. Good job. Congratulations. What'd you do with the money? You don't know. Oh, you got a cool muffler for your car? So cool. I love the aftermarket accessories. Oh, I went to a nice restaurant. Okay. Where? Do you remember it? Do you even remember what you ordered? I don't mind spending more money. I don't mind. But I want you to have a plan for what to do with unexpected income like a raise.. I recommend, for example, investing 70% of it and then enjoying the other 30% guilt-free. So if you get a $10,000 raise, invest $7,000 of it that year. Now, also, I know I'm about to get 68,000 people in the comments going, Ramit Sethi, $10,000 raise, so out of touch, so out of touch. Do you know how to adjust the numbers that I'm giving you for your own situation? Have you ever thought that maybe I should take the material in this video and apply it to my situation? If $10,000 is too much, drop a zero off that. A $1,000 raise. What are you going to do with the money? And if the answer is, Ramit, you didn't account for debt, then pay off your debt. That's what I would do. That's how I want you to watch my videos on this channel. I want you to take the material you get and adapt it for your own needs. That's why I want you to click subscribe right now so you can keep getting videos like this. Number 5, focus on growing your income. This is actually the number one lever that you can pull. Check out my Earn 1K program to make more money on the side. You can learn how to negotiate your salary. You can build high-value skills that other people will pay you for. The point is, when your salary increases, then you are going to be able to contribute more to your retirement accounts. You're also going to be able to spend more. You're going to be able to save more. That is awesome. Okay, now let's move to the next decade. Your forties. In your forties, the stakes get real. You're likely earning more than ever. But this is also when life starts pulling you in many different directions. Often that can be mortgage payments, kids, aging parents, bigger expenses. This is the decade where you need to be proactive with your money. If you don't, life will make the decisions for you. And those decisions rarely work out in your favor. Here are some numbers. The median 401(k) balance for people in their 40s is nearly $53,900. The average, though, is about $146,000. In this decade, you're starting to approach your peak earning years. But if your 401(k) balance is still under $50K or it's not enough for where you want to go, it's time to get intentional. In your 40s, you got to shift out of this mindset. I'll start saving later. Now is later. This is a decade where your actions really decide what the rest of your life is going to look like financially speaking. And the good news is you can still course correct. You can still build serious momentum because in your 40s you need a playbook to make sure your money is working just as hard as you are. So number 1, aim to invest 10 to 15% or more of your salary. This is the baseline for staying on track in your 40s. If you've been contributing less, now is the time to ramp it up because you need time and compounding to do its work. Number 2, you need to set some concrete retirement goals. Don't say, I'll figure it out later. Don't wait for some day. Nobody's coming to save you. There's no Disney character coming to save you. Ramit Sethi is not coming to save you, although you can join my money coaching course. I'd be happy to try to help you, but I'm not going to save you. You are going to save you. That's why you have to define exactly what retirement looks like for you. Where are you going to live? What you're going to do? How much is it going to cost? You can use a 4% rule, to help guide that, which the 4% rule, by the way, says you can safely withdraw about 4% of your portfolio each year in retirement, adjusting for inflation without running out of money for 30 years before you croak. Let me show you the basic calculation. Then we'll go a little bit deeper later in this video. How much you need every year divided by 0.04 equals your goal. Again, rough math, but it will get you started. Number 3, calculate your crossover point. When your investment income covers your lifestyle. This number is actually a game changer. I love it. It shows how close you are from not needing a paycheck, which means you have really reached financial independence. Here's a quick way to calculate this. First, figure out your annual spending. Let's just say for easy math, you spend $40,000 a year. Then multiply that by 25. $40,000 times 25 is $1 million. That's your crossover point. If you have more in investments than that number, you've achieved financial independence. Again, this is a very rough calculation. Please, please go deeper than this, but at least you're starting to get the idea. So if you have $1.5 million in this case, yeah, you've reached financial independence. But if you have less, like only $80K saved, then you have a lot of work to do. Number 4, have real substantive money conversations with your partner and your parents. No more letting money be in the shadows. We want to take out a big fat spotlight and shine a light on it. We got to align. We got to avoid future headaches by getting clear on family expectations and support and long-term plans. Number 5: Audit your spending leaks. A lot of people, by the time they make $150,000 or they are in their 40s, they stop tracking their spending. And often they find that they are spending thousands of dollars sometimes on stuff they had no idea had added up to that much. Small, unnecessary expenses can snowball. That's why I want you to review your subscriptions, your fees, your random splurges, the things that you don't actually care about, and redirect that money into the things you do, including your investments. Now, don't be a lot of people who hit their 40s and just coast, assuming they are doing fine because they got a roof over their head and the cable's working and you know, they can drive somewhere and buy Chipotle. No, I don't want you to get to your 50s waking up realizing you're behind. All right. You made it to your 50s. By now, retirement is not just a distant idea. It's actually a countdown. And this is where small, deliberate moves can have 6-figure impacts. Let's look at the numbers. The median 401(k) balance in this decade is about $81,700. The average amount people have is nearly $230,000. Do you see how that gap between median and average is growing and growing and growing. Okay, listen up. If your 401(k) is under $100K right now, it's time to take action and seriously ramp up your contributions. Without dedicated moves, you are at real risk of retiring without enough money. In your 50s, small tweaks can have six-figure impacts. For example, number 1, max out your 401(k) and take advantage of catch-up contributions. If you are 50 or older, you can currently contribute an extra $7,500 to your 401(k) for a total of $31,000 a year. And that doesn't include your employer's match. Yet in 2024, only 16% of eligible people actually use that. It's like being at an all-you-can-eat buffet and only taking one bite. And the thing you take a bite out of is the iceberg lettuce. Ugh! Don't leave one of the highest impact retirement boosts just sitting on the table. Number 2, get a withdrawal strategy in place Now. Okay. You calculated your retirement goal with your 4% rule back in your 40s. Good. Revisit that. Are you still on track? Is your lifestyle going to change in retirement? Do you need to contribute more or can you actually ease off the contributions and actually spend some of that money right now? Number 3, consider working with a flat fee financial planner if needed. At this stage, as you start to approach retirement, the stakes get higher and higher. A good planner at this stage can help optimize taxes, manage withdrawals, and avoid costly mistakes that derail your retirement timeline. Remember, shifting into retirement mode and de-accumulation is highly technical. There are a lot of things you want to be aware of, including tax benefits, which sequence of accounts to withdraw from, when to take Social Security, and on and on. Number 4, simplify your accounts and estate plan. What is it with you guys? Falling in love with the 68 accounts you have scattered all over the globe. Oh, I got my Bank of America from when I was a 15-year-old. I really love that account. So much nostalgia. What the fuck? How many of you feel nostalgic about an inanimate bank account? What is wrong with you? Not my parents or my family or that Country Mart that's down the road that burned down and has now become a Ralph's. Whatever. Why do you fall in love with having so many of these stupid accounts? More accounts mean more complexity for you and your family. Oh, that's another thing. When you die, someone has to go through all those accounts. And you know what's the most depressing part of all? Not the fact that you allocated your money in a subpar way. Not the fact that you're paying 1.25% AUM and you don't even know what that means. The worst part is they're going to open up some binder full of a bunch of accounts. There's going to be like 13 different accounts at big banks. All these banks are shit, by the way. Bank of America, Wells Fargo, the worst banks on the planet. And they're going to be like, wow, maybe mom or dad had a bunch of money. And then they open up the accounts. They finally get access. They show your death certificate, all this stuff. Then turns out each account has like $0.37 in it. It's like, geez, they couldn't even close the accounts. They made us take their death certificate to Wells Fargo, go through all this legal shit, and they only had $1.65 total. Oh my God. Number 5, consider rebalancing to reduce risk. As you get older, you want to be mindful of risk. For example, if the market goes down 10 or 15%, that could dramatically affect your ability to retire. That is why we want to really understand things like allocation and how we diversify our risk. As you can see, I break down complex money concepts without the BS. I'm not going to shame you for wanting to buy avocado toast or take a vacation. Click subscribe so you can keep getting videos from me the next time I release them. I don't know why I'm talking about you as if you're about to keel over and die in your 60s. You're probably not, unless some of you are eating the ultra-processed foods that I see you at the grocery store buying. But that's for another conversation. This is the decade where everything you have built really starts to pay off, or you realize you have gaping holes in your strategy. Retirement is not some distant future anymore. It's here. And these numbers become very real. I got to tell you that some of the most heartbreaking emails I get every single week are from people who said, hey, Ramit, can you help me? I'm 63 years old. I never saved. I never thought about investing. What can I do right now? And that's a really depressing email because there are no easy answers if you have gone your entire adult life without prioritizing your finances. The truth is that retirement can be very, very dark and depressing if you have not planned for it. That is why I'm doing this video. That is why I want you to pay attention to the numbers and the strategies. And if you just realized, oh my God, I've kind of been coasting through this video but not really paying attention, then I want you to go back and start again because I want you to get to your 60s and I want you to feel good in your 60s. The median 401(k) balance is around $95,500. The average is about $285,000. And I also want to be clear, neither of those amounts is enough to retire on. Using the 4% rule, for example, with a balance of $95,500 means that you would be able to withdraw only $3,820 a year in retirement. And even if you had $285,400, you could still only safely withdraw about $11,000 a year. How are you going to live off of this? Well, it would be very difficult, basically be impossible, especially when the average American household spends $6,440 every month or $77,000 over the course of the year. In order to be able to afford spending that amount in retirement, you would need a total portfolio balance of $1.93 million. You see why this stuff really matters? Let me give you your playbook for your 60s and beyond. On. Number 1, you got to know your monthly spend. This isn't about budgeting every penny, but it is about understanding what your lifestyle actually costs, especially the big picture items—housing costs, car, food, including delivery and eating out. The clearer you are on that number, the easier it is to know how much you will need in retirement. Number 2, take advantage of higher catch-up contributions. If you're 60 to 63 years old, for example, you can currently contribute an extra $11,000 $2,250 to your 401(k) for a total of $34,750 a year. Again, this doesn't include your employer's match. If you are behind, use this moment. Number 3, you can consider working part-time by choice if you want to. This could be consulting, freelance projects, a fun side gig that keeps you active and engaged. The key, of course, is you got to factor in your finances, but also finding something that you actually like. Number 4, put your withdrawal strategy into action. The 4% rule is a great starting point, but now's the time to tailor it to your lifestyle. How much do you actually need? What are you actually going to spend it on? This is really where having a vision of your rich life comes into play, which takes me to number 5, spend with intention. Yes, actually spend your money. Take the trip, help your grandkids, be generous, support the causes that you love. The goal isn't isn't just to blindly accumulate money. It's to live a life where money quietly supports you in the background so you can focus on what your rich life is— your family, your passions, your freedom. Now let me show you some actual numbers and you can see where you stand. Let's use the 4% rule and walk through a few salary examples to see how much you would need by retirement to keep making the same amount each year when retired. Again, this is just an estimate. Tailor these numbers to your exact needs. If you make $60,000 a year and you want to keep making that amount in retirement, you'll want to build your investments to about $1.5 million. At $90K a year, your target jumps to $2.25 million. And if you're earning $120K, you're looking at a $3 million portfolio to sustain that lifestyle. Now, let me give you a couple of caveats here. First of all, When you are accumulating money, you are putting a relatively substantial amount of that money aside for savings and investments. When you are retired, you probably don't need to keep investing based on these numbers, so you can take that money and spend it. Next, sometimes in retirement people's expenses go down because they're not commuting, they're not eating out as much, you know, things like that. Also, sometimes if people have bought a house, they may pay it off by the time they retire or soon thereafter, which can dramatically reduce the amount that you are spending every single month. Again, you need to factor all these things in. There are plenty of retirement calculators. You can search for Ramit Sethi calculators and find a whole bunch that will help you right now. These numbers are based on the 4% rule, which gives you a safe withdrawal rate to maintain your income for 30 years in retirement. Now, some of you are not going to make it for 30 years. Let's be honest, I see some of the pictures in my comments. Unfortunately, you're not going to need 4%. I mean, you might as well take 5 or 6%, you know, life is not going to last that long for you. But if it is, or as we always like to plan for it to last, then here's the basic calculation you can use: your current salary, or what you would like to make every year in retirement, divided by 0.04. That's your goal. So take the time today to calculate your number. In fact, leave a comment below and tell me what the number is when you take the amount you want to make in retirement divided by 0.04. Tell us what that number is. Once you know that number, you can stop guessing and start planning. If you're behind, don't panic, but also stop living in a fantasy world. You have a little bit of time. For some of you, not much. You need to start taking action today. If you are ahead, take a second to give yourself a pat on the back. That's actually amazing. Don't get complacent. Keep your momentum going. And also decide when you can slow down on your contributions. Remember, we're not here to just hoard money. We're here to use it to live a rich life. You know, a lot of people are just winging it with money. They're guessing about investing. They're trying to save when they can. And then deep down, they just hope it'll all work out. But that's not the way we want to approach money. That is why I created my money coaching program so you can stop guessing and finally take control of your money. In my money coaching program, you'll get monthly coaching from my team and me, step-by-step playbooks for earning more and paying off debt and investing, plus the accountability to really follow through. Imagine logging in and seeing the exact next move for your money. No more confusion, no more homework that you've assigned yourself to figure it out later. That's exactly what my money coaching program does for you. Go to iwt.com/moneycoaching or click the link in the description below to join us today. I'm 42 years old and I teach people how to live a rich life. And let me be honest, sometimes you need someone to give you a gentle kick in the ass and give it to you straight, no matter how hard it is to hear. So here are 50 money truths I wish I knew at 20, 30, and even some things I have to remind myself about in my 40s, starting with number 1. You don't have all the time in the world. The longer you wait, the harder it gets. So put in the work early. If you get your 20s right, the rest of your life gets so much easier. Number 2, there are no shortcuts to building true wealth. Building wealth takes time, patience, and discipline. Number 3, beating people over the head with more information and more numbers will not get them to change. They have to be willing and open to change. And you have to connect with them. Number 4, have more fun. A rich life is lived outside the spreadsheet. Money lets you have more experiences, lets you be more adventurous, more spontaneous, more generous. Money is fun. Number 5, there's a time and a place you can only do certain things. In your 20s, maybe that's backpacking across Europe. You're not going to want to do that in your 50s. So make sure you time your experiences. Number 6, You don't have to get things perfect. Perfection is impossible. And striving for perfection alone often holds you back from starting. Learn, know that you're not going to be perfect and you'll improve along the way. Number 7, think about who you want to be and start spending money on it now, even a little bit. For example, I wanted to be fit, so maybe I should spend money on a gym membership. Maybe I should hire a trainer once a month. Later I can add on more. Number 8, have a big cash reserve so when opportunities present themselves, you can take advantage of them. For example, the 2009 housing crash, 2020 drop in the stock market. This of course assumes that you are already investing. I do not want to be timing the market for my primary investments. Number 9, create a tripod of stability. For me, the 3 most important things: healthy relationship, healthy workplace, healthy housing environment. This allows me to take on more risk in other areas like building a business. Number 10, talk about money early in your relationship. Personally, I messed this up. 11, the more you make, the more generous you can be. Number 12, get used to waste. It's okay to waste a little bit. And as you grow, as you spend more, you're going to waste more. That's okay. Of course, you should try to reduce waste, but eliminating waste is not the point of your life. For example, me not returning a $10 Amazon gadget and losing $10. That's okay. I can just donate it to someone. It's not that big of a deal. Number 13, you don't have to do what everyone else is doing. Whether it's buying a house, getting married, having kids, traveling to the same place, buying the same car, you choose your rich life. Number 14, try on the clothes you love before you look at the price tag. Number 15, this is just my own lesson, don't use the minibar. Number 16, expose yourself to different people, different ways of living, and different ways of using money. For example, I went to Microsoft for for an interview when I was in college, and they told me I could expense anything. That was the first time I ever ordered room service, and I realized how magical it was to me. Same for my scholarship, which trusted us by default and let me spend money in a different way. Number 17, be careful who you take advice from. There was somebody who once told me that the way I should manage my career is to go get a job at Procter Gamble so I can retire 40 years later with $1 million in the bank. I was like, what? That's it? Also, people who post on Twitter and tell me all the things I've done wrong but haven't accomplished anything in their lives. That's a whole nother story. By the way, if you enjoy people giving it to you straight, hit that subscribe button and turn on notifications so you never miss any of my new videos. Number 18, you might as well acknowledge reality. When I was in my 20s, I knew one day I was going to have a wedding and it was going to be big. I'm Indian. I want it to be huge. I want to bring everyone together. So I started saving for my wedding before I even met my wife. Number 19, monitor your language. I used to call myself just a skinny Indian guy, or when I took a trip, I would say this is a once in a lifetime trip. No, it's not. If I want to do it again, I can. Number 20, don't let the tail wag the dog. I don't move somewhere so I can save on taxes. I choose, and then taxes are a secondary part of the decision. In fact, they're the last part of the decision. Number 21, certain things are worth paying a lot more for. Great talent, great clothes, great experiences. You choose what's worth it, but be clear about it. Number 22, some things are not worth paying a lot for, like 1% AUM fees from financial advisors. No thank you. Number 23, if you save money, on unnecessary expenses, whether it be home ownership, 'cause you don't choose it, financial advisor fees, 'cause you manage yourself, et cetera. Try to invest most of the difference. That is a quick way to build a lot of wealth. Number 24, it's not normal to carry credit card debt. Just because so many people are in credit card debt doesn't mean you should be too. Now let's get to the next harsh money truth. 25, when I was younger, I would have done stuff at the level I could afford. For example, backpacking in Europe, staying in cheap hostels. I loved it. Now that I'm older, I have a vision of exactly how I want to do it. And if I can't yet do it that way, I would rather wait. 26. Decide where you want an unlimited budget. For me, it was books. I knew that I wanted to give myself the gift of being able to buy book anytime, so I created my own money rule around it. 27, renting can be a better financial decision than buying. You gotta run the numbers. 28, talking about money with your partner is not weird. Having an agenda is not weird. If you are married, you are running a business, the business of running a household together, and talking about money can bring you closer together and build that connection. 29. Don't be misled by what you see on the surface. You might see someone spending a lot of money. Maybe they have secret family money. Maybe they're in debt. Maybe they can actually afford it because they make way more than you know. Most people will rarely admit it. Don't worry about it. Focus on yourself. Run your own race. Number 30. Just because people say they made money on their house doesn't mean they actually did. Look, 50% of people don't even know their own household income. Most people, when it comes to their housing, do not understand phantom costs like fees, opportunity costs, inflation, etc. Number 31: Don't talk about generational wealth when you are in massive debt. Pay the debt off first. Number 32: The second best time to start investing is today. So what if you didn't start when you were 17 years old? I wish I started deadlifting when I was 17, but I didn't. You can still start today and move closer to your rich life. Number 33, celebrate the journey or you will always feel behind. Number 34, do not be a doomer. If you surround yourself with doom and gloom, you will really start to believe it. Number 35, beware of fake metrics. Remember a few years ago when everyone was bragging about how many books a year they read or how many employees they have? Avoid fake metrics. Focus on the things that matter. Number 36: 9-to-5 jobs are not for losers, no matter how many entrepreneurs on TikTok tell you so. Number 37: It's okay to talk about where you're struggling. I used to avoid it. Personally, it's still hard for me to talk about this, but people really connect to you when you share not just what's going well, but also what's hard. Number 38: What got you here won't get you there. I love the title of this book by Marshall Goldsmith. What it means is people, especially smart people, have certain skills that get them to a level, but in order to get to the next level, you often have to develop new skills. For example, being a good listener and being much more emotionally sensitive is probably the most important thing I've done in the last 20 years. Number 39, give yourself the gift of at least one moment of true awe every year. Number 40, don't just think of I and me. We are social creatures. How can you use your money to affect and help the people around you? Number 41, don't buy something just because you think you deserve it. If you can't afford it, which means you know your numbers, don't buy it. Number 42, become an expert in leisure. I consider myself one of the world's best at leisure. I want you to be the same. Take time, enjoy yourself. Do not be the typical American who overworks themselves, moves to Florida, gets skin cancer, then dies. Number 43: Reframe your negative thoughts into something positive. I'm not just a skinny Indian guy, I just haven't learned the skill of training and fitness yet. I'm not lazy, I'm resting and recuperating so that when work calls for it, I'm ready to pounce. Number 44, some people will willingly get scammed because they do not want to do the hard work. They're looking for get-rich-quick schemes no matter how many times you tell them it's a scam. Do not be one of these people. Number 45, double it or triple it. Whatever you think you'll spend on a big expense, a vacation, a wedding, eating out, double it or triple it. That's probably closer to what you will actually spend when you factor in all the related expenses. Number 46, learn the phrase no. It's okay to say no. The people around you will be okay if you say no. You can adapt it and soften it by saying something like, sorry, I can't take that trip. I'm focusing on building my savings right now. Number 47, take a second and appreciate people when they put in effort. For example, when I visited people's houses on my Netflix show, they were probably wearing the best clothes they own. Their house was probably the cleanest it will ever be. It looked amazing. I always took a second and appreciated them and their family, and that's what people remember. 48, if you can't pay it off the next month, don't put it on your credit card. Make a savings plan for it, and then once you do it, celebrate. Number 49, your loved ones remember who steps up when they need help. I think about book tour and who came to my events. I think about when my wife and I launched a fundraiser and who donated even $20. Those things stick with us. We remember. And number 50, nobody cares. You know how I helped my friend get a 75% raise? I taught her that when she went into the negotiating room, she was talking about how much work she did, how hard she works. I said, nobody cares. Your boss couldn't care less. All they care about is are you making their lives easier and are you making them money? She reframed how she presented herself and she remembered one of the key lessons of life. Nobody cares. So show them in a way that makes them care. And that is the list of 50 harsh money truths I wish I knew when I was 20. Which one of those surprised you the most? Leave a comment below. Your 30s are a critical decade for your money. The habits you build and the milestones you hit right now will determine whether you're coasting into your 40s or scrambling to catch up. In this video, I'm going to share the exact milestones to hit in your 30s to set yourself up for a rich life. Milestone 1: You've paid off all high-interest debt. Paying off your debt, especially high-interest debt like a credit card, will give you an instant and big return. Let me put it this way. If I could make 27% in the stock market, I would be investing every single penny I had. The problem is that when you're paying 27% interest on your credit cards, you are losing a tremendous amount of money. Not only are you paying interest on your debt to the credit card company every month, you're losing out on years of investing and actually making money. So pay off the debt. Make a plan. You should know the exact month and year you will be debt-free. To help you figure out your debt payoff plan, I created a debt payoff calculator that'll show you exactly how long it will take you to eliminate your debt. I'll link it for you in the description below. Milestone 2: You've saved a 6-month emergency fund. Now, most emergency fund recommendations are for 3 months of your bare minimum expenses. But a major milestone is having 6 months saved. Why? You never want to be in the position where your back is against the financial wall. That means if you get laid off, if you have a sick or aging parent, there can be major expenses you didn't anticipate. And having 3 months saved is great, but it doesn't always give you a lot of wiggle room. If you have a 6-month emergency fund, You'll be prepared in case something more extreme happens, like a job loss. And one more thing. The older you get, the more expenses you are likely to have. That is why I would encourage you to think bigger about your emergency fund. Now, to figure out how much you'll need for 6 months, tally up your basic expenses like rent, transportation, groceries, bills, and debt payments. You can do this easily by downloading my conscious spending plan, which I'll link in the description below. All you have to do is put your numbers in and then you will automatically see how much you need each month. Aim for saving 6 months of that. For example, if you spend $3,500 every month on your fixed costs, your emergency savings goal would be 3,500 times 6 equals $21,000. Yes, it'll take a while to save up 6 months of an emergency fund. That is why you should be working towards this goal every single month automatically putting money into your emergency fund. Now, I usually recommend 5 to 10% of your paycheck go into savings, but in your 30s, I want to encourage you and challenge you to increase your savings rate to 10%. That means you can save more towards your 6-month emergency fund, and you can save for other goals that you have. Milestone 3: You consistently invest 10% or more of your salary. When you're just starting out in your career, investing 10% of your paycheck can seem difficult. It can even be impossible. But as you start to make more in your 30s, you should be investing more, ideally 10+% of your paycheck minimum. And this can be a combination of what you contribute to your 401(k) and other investment accounts like a Roth IRA. For example, if you're contributing 5% to your 401(k), then contribute 5% to your Roth. And for all the financial freaks out there who are about to tell me this is confusing, it's pretax versus post-tax, it's not that confusing. Just approximate it. The point is not the precision. The point is to get the number bigger. And don't stop there. The more you invest, the better. That is because the real wealth is created in investing. So every year in December, set a calendar reminder to increase your investment rate by 1%. If you haven't yet maxed out your Roth IRA, increase it there. Once you've contributed the max to your Roth, go back to your 401(k), increase it by 1% there and keep going. You can do a taxable account. Here's the key. Stop increasing your contributions only when you are well ahead of your retirement goal. For example, if you need $3 million to retire, you would be on track to coast to $3.5 million. That's another little secret. You always want to set a goal bigger than what you need to win because inevitably in life it's not always going to go right. Milestone 4: You have monthly money meetings with your partner. This meeting, which is on the calendar every single month, gives you and your partner the time and space to talk about your finances. And honestly, this check-in works just as well if you are single. Throughout the month, if you have random questions about your finances that are not time sensitive, you just drop it in the agenda. I know it's weird to have an agenda. Oh, that's so weird. That's so corporate, Ramit. You know what's actually weird? Going the next 45 years of your life arguing about the price of alfalfa instead of using a simple free Google Doc where both of you participate and run a business together. The business of running your household. Here's how to structure your monthly money meeting. Choose a calm environment, minimize distractions as much as possible, and set a timer. Keep the meeting to no more than 60 minutes. Here's the agenda. Start with a compliment. I really appreciate that you picked that amazing restaurant for my birthday last week. Next, follow up on any open items from last month. I know I was going to try to cut our grocery bill by $100, 'But I wasn't able to do it. I only dropped it by $40. Here's what I'm going to do next month.' Then review your conscious spending plan. How are we doing? How are we working according to our numbers? Do we need to tweak anything? Look at your named savings accounts. For example, 'Wow, we're already 30% of the way to that amazing Tahiti vacation.' Talk over anything else in your shared agenda. 'Hey, what was this $201 charge transferred from our checking account. I can't figure it out. Then assign any tasks by name. Be specific. Who owns it? What's the next step? What's the deadline? For example, we should link our joint and individual accounts together. Can you do it tomorrow night after work? Then give yourselves a rich life moment to look forward to. Hey, let's go to that new Thai place on Friday with Cam and Nikki. I'll book the reservations. And Always end with a compliment. A good compliment is specific about the meeting, and it can include how your partner made you feel, something you noticed, even the fact that they were present during the meeting. You know, that was tough, but we did it, and next month is going to be even better. I love you. Don't worry if this feels awkward or weird at first. It's going to be amazing when you see how much you are automatically saving and investing. And more importantly, you are going to love the feelings of connection because you're doing this together. Milestone 5: You've saved a buffer for each of your larger purchases. When it comes to large purchases, the number one mistake people— well, the number one mistake is some of you buy freaking Jeep Grand Cherokees and Fords, some of the worst vehicles on earth. But the next mistake people make is that they do not account for phantom costs. Phantom costs are the invisible costs that are not obvious from the sticker price. If you don't plan for phantom costs, you may find yourself making major purchases and wondering, where's all my money going? Because these unexpected expenses have suddenly come out of left field. An example would be if you buy a house, there's going to be maintenance and repairs you simply did not account for, transaction costs, etc. This is also true on vacation. On vacation, you might need to take an unplanned taxi ride. Okay, you got to factor that in as well. But how do you know how much to save for a buffer if you don't even know what these phantom costs will be? Well, the best way to do it is to save a percentage of what you expect to spend. For example, if I'm going on vacation and it says that it's going to cost $1,000, I expect it to cost $1,500. If I'm planning a wedding and it looks like it's going to cost $30,000, I expect it to cost $60,000. As you can see, I'm doing 150% for vacations, 200% for weddings. You can adjust the numbers for your own situation, but the key here is to plan for phantom costs and to use percentages. Next up, Milestone 6. But before I get to that, make sure you hit that subscribe button and turn on notifications. So that you don't miss any of my new videos on building wealth. All right. Milestone 6, you donate 1% of your salary. Now, I love this one. One of the most important parts of a rich life is to live outside the spreadsheet, not just sitting there calculating a Monte Carlo calculation for the rest of your life. No, it's relationships. It's new experiences. It's trying new foods and giving back. If you've hit every other milestone in this video, you've moved past the basics. And this means it's time to elevate your goals beyond the day to day. I want you to think bigger, not smaller. So many people are consumed with the minutia of money that they don't zoom out and think about living a rich life. And I believe that part of living a rich life is giving back to the community that's helped you flourish. Now, to make giving back an important automatic part of your rich life, first, it doesn't have to be some astronomical number. It can be 1% of your salary, which is highly meaningful. Or if you can't do 1%, do half a percent. But here are some ideas. One, you can set up an automatic donation to a charity that supports a cause you care about. You can leave very large tips every time you eat out. You can purchase school supplies for kids in need. All I can tell you is that when I have spent money on those in need, those are the times that I remember far more than buying a new shirt or going out to see a movie or a restaurant. Now, whether it is your time or your money, I want you to incorporate giving back into your rich life. Milestone 7, you've completed the 10-year bucket list exercise. One of my favorite ways to design your rich life is the 10-year bucket list with a twist. I'm going to show you how to create a fun list, and then you're actually going to make one of these happen. Let's do it right now. The great thing is you can do this with a partner or you can do it solo. Ask yourself, what do I want to do in the next 10 years that would make the decade incredibly meaningful and rich. And dream big. Think once in a lifetime trip or special car or incredible annual family reunion. If one of you wrote buy a new Uniqlo sweatshirt, you really need to dream bigger. Now, when I sat down with my wife to do this exercise, one of my items was write a book in a beautiful hotel. I knew that in the next 10 years I would write a book and I love hotels and I actually made that dream happen. I wrote my new book, Money for Couples, in my favorite hotel in Kyoto, Japan. I'm doing a little writing outside. There's nobody around and just have a very leisurely day as I'm writing. So let me show you how to do the 10-year bucket list exercise yourself. Write down 5 items on your 10-year bucket list. This will take about 10 minutes. If you're doing this exercise with a partner, take turns sharing your ideas one at a time. And remember, Stay curious, have fun, keep the tone playful. You might even discover something you didn't know about your partner's dreams. Pick one meaningful idea. This should take about 10 minutes. The idea should be exciting and inspiring to both of you if you're doing this with a partner, and it should feel big, maybe even uncomfortably big, but also achievable. Schedule it. This should take about 3 minutes. Choose when you want to do this. Be specific down to the month and year. If you're thinking of taking a vacation with kids, for example, you probably know it's going to be during a school break. And if you're not sure when, use your best judgment, but pick a month and year. Estimate the cost. 10 minutes. We're looking for rough calculations here, so don't get too hung up on the exact amount. And here's a pro tip: build in a buffer. For example, if you're planning a big trip, jot down the major expenses like airfare, hotel, food, and shopping, and then add 50% to the total. Build the system to ensure that your bucket list item happens for sure. This will take 10 minutes. You know what you want to do, you know when you want to do it, and you know how much it costs. Now let's put it all together. Let me show you an example. We want to take a family vacation to Argentina. We know that we want to do it 5 years from now or 60 months from now, we estimate that it's going to cost $10,000, which means if we divide $10,000 by 60, we need to save $167 per month. Now, if your monthly number looks too high, don't worry. You have options. You can stretch out the timeline by a year. You can cut back on other expenses, or you can simply shrink the scope of your idea from $10,000 to $8,000. What I love about this is you're taking real steps to make your rich life happen. And it's simply a matter of time now because of the system you built where you are automatically saving money in an account. You know that every single month, like a video game, you are getting closer to winning. And there you have it, 7 money milestones to hit in your 30s. You ever feel like you totally missed the investing boat? Like you see these 25-year-olds retiring early. Meanwhile, you're just trying to figure out where your money should go. Well, I've got news for you. It is not too late, but if you are getting a late start, you do need a different approach. So today I'm going to give you the exact roadmap to build real wealth starting right now. No fluff, just results. Step 1: Face the numbers. No more avoiding it. If you've been avoiding your finances because you think it's too late or you've missed your chance to build wealth, I get it. I understand. But I got to tell you, the worst investment strategy is waiting for the perfect time. Because while you're waiting, you're getting older anyway and regret is not helping you. So today we stop avoiding and start taking control. And facing your finances, fully embracing them, might be scary, but avoiding it's not going to change reality. See, most people, when they finally look at their numbers, they actually realize that they're in a better position than they thought. So let's do this together. Now, before you start investing, you need to know exactly where you stand. This is not about judgment. It's about clarity. And once you know your starting point, you can create a realistic investment plan that fits your life. So here's what I want you to do. Number 1, write down your assets. That's everything you own. Your car, maybe a house. You don't need to write down that belt you got from Shein. Nobody cares. But write down a few key assets that you own. Next, write down your debts. That's everything you owe. Keep in mind that 90% of people who are in debt don't even know how much they owe. So If you do just this step, you're so far ahead. And finally, subtract your debts from your assets and that will get you your net worth. Now take a look at that number. If the number's negative, don't freak out. That's just your starting point. It's not your ending point. Your net worth is a helpful number to know where you are today. It's a snapshot in time, but it still needs something else to give you the full picture. Next, let's get crystal clear on your spending. See, a lot of people think that they don't have enough to invest, but once they actually take a candid look at their spending, they realize money has been slipping through their fingers for years. So here's how to find it. First, pull out the last 3 months of your spending. You can just log on to your credit card website, Download the transactions right there. Next, categorize your spending into 3 categories. Essentials like rent, groceries, and bills, things you need to keep the lights on. Next, non-essentials like shopping, entertainment, eating out. And finally, put on your detective hat and find that third category of hidden leaks. You know what I'm talking about? Those subscriptions you forgot about, you signed up for 18 months ago. Those impulse purchases because it's Friday night. Oh, I'm not sure. What should I do? That's what I'm talking about. Find the hidden leaks, then identify the unnecessary expenses and make a note of them. We're going to get to them in step 2. When you become aware of where your money is going, it is incredibly powerful. It doesn't mean you're judging yourself. You're not beating yourself up. I'm a horrible person. No, you're just looking at the money like a scientist. Pissed. What is that? Why is that person behaving that way? Except the person is me. And then we're going to redirect that money to where you want it to go. Step 2: Create a realistic spending plan. Now listen up, you freaks. I know you're about to click off this video. Ramit Sethi is going to tell us how to budget. I hate budgets. I don't want to have to track the price of turnips. No, you don't have to do that. In fact, if you're keeping a budget that has 65 lines, you're wasting your time. However, we are going to create a spending plan. This is not about punishment. It's actually about freeing up money so that you can invest more without ruining your quality of life. Introducing the conscious spending plan. It's not a restrictive budget. It's actually a forward-looking system that lets you spend more on the things you love while cutting out the the things you don't care about. And the best part is you only need to track 4 numbers. Here they are. Fixed costs. These should be 50 to 60% of your take-home pay. This includes mortgage and rent, utilities, groceries, transportation, debt, all the things you need for essentials. Next up, investments. This should be 10% of your take-home pay minimum. And this is non-negotiable. This is your future. This number matters more than anything else. Savings, 5 to 10% of your take-home pay. This is your emergency fund, future goals like potentially a down payment on a house. And finally, my favorite, guilt-free spending, 20 to 35% of your take-home pay. Yes, you can still enjoy life. The real goal, free up money to invest. Invest now. Let's get honest, if you feel behind, the biggest advantage you can have is taking action today. Now, this doesn't mean you have to overhaul your entire lifestyle, throw everything away. No, sometimes minor adjustments can actually make a really big impact. So let me give you 3 small tweaks that add up. Renegotiate your bills. Call up your internet company, call up your cable company, call up your phone provider, ask for a cheaper plan. Did you know that you can even sometimes negotiate the APR on your credit card debt? No, you didn't know that. You were busy reading a bunch of frugality forums telling you, hey everybody, did you know that if you plant your own cauliflower, then over 6 years it will actually develop into something that you can put in the salad? Stop wasting your fucking time. Call up and negotiate the big wins. Next up, automate your savings and investments. Even small automatic transfers. Can help you build wealth when done consistently. Finally, get honest and get creative. Identify any weaknesses you have in spending. For a lot of people, it's ordering delivery after 10 PM. If that's you, don't beat yourself up, but get honest. Why do I do that? Ask yourself the 5 whys. I do it because I'm hungry. Why am I hungry after 10 PM? And then come up with a solution. Remember, nobody's gonna solve this for you. It's up to you. So here's what I want you to do now. Today, I want you to open up your bank statement and your credit card statement, and I want you to find 2 things you can cut that are just not adding much value to your life. For example, let's take a look at Nenyah's spending. She opens her credit card statement. She realizes she spent $500 last month on shopping and $400 each eating out. Now, if you ask her, she will admit these two categories are not really part of her rich life. They were just something she did impulsively. So instead, she sets up an automatic monthly transfer for $900 into her investment account. Now, if you don't want to go completely cold turkey, that's fine. Set the transfer up for $500 into your investment account and create a constraint for yourself to spend less on the things that are not important. Now it's time for you to do it. Find 2 things you can cut back on and redirect that money straight into your investments. This is how wealth is built. One smart decision at a time. So pat yourself on the back. I followed Ramit Sethi's video. Hit that subscribe button and turn on notifications. Because when you make these healthy habits automatic and you watch each of these new videos, you make hitting your goals easier and far more likely. Now that we've talked about conscious spending, let's get into one of the most powerful ways to accelerate your wealth. Step 3: The simplest investment strategy for late starters. Now listen up, y'all. You got to stop turning down free money. If your job offers a 401(k) match and you're not maxing it out, you are literally turning down free money. Let me show you how it works. Let's say that you contribute $1 to your 401(k), and let's just say your employer matches it for $1. That is an instant 100% return. Where else are you going to find that kind of money? This is one of the best ways you can build real wealth. It is to set up automatic investing, especially if you have a 401(k) match. How to catch up even if you started late. You might be thinking, I don't have enough money to invest. Only rich people invest. Wrong. Let's reframe it. The way people become rich is by investing. See, if you have a paycheck, you have an opportunity to build real wealth, especially with tax-advantaged accounts. And the best way to do that is to have the money automatically sent to your retirement accounts, because if you don't see it, it, you're not going to spend it. And by maxing out your 401(k) employer match, you are basically adding a turbocharge to how much you can invest. Now, here's how much you can contribute in 2025. In your 401(k), you can contribute up to $23,500 per year, not including the employer match. And in your traditional and Roth IRAs, you can contribute up to $7,000 $10,000 per year. But if you're over 50, you get a huge advantage. You can invest more than younger investors to make up for lost time. Here's how much extra you can contribute in your 401(k): an extra $7,500. That's a total of $31,000 per year, not including employer match. And your traditional and Roths, an extra $1,000 for a total of $8,000 per year. Do you all understand what the fuck I just said? I know that was a lot of numbers. Let me tell you what it means. It means you can put a lot of money in your tax-advantaged accounts and grow it. And because it's not sitting in your freaking checking account where you're withdrawing it to spend it at Sweetgreen, it's actually going to grow and compound. This is how real wealth is created. Now let's talk strategy. How to strategically increase your contributions over time. Stop beating yourself up and telling yourself, I'm bad. I'm so bad. I'm so— stop the puritanical bullshit. Instead of panicking about how much you should invest, let's actually just start investing today. What do you say? If you've been undersaving or underinvesting, I don't want you to panic and go, "Ah, I need to invest $20,000 this year." That's probably not realistic to go from $0 to $20,000 in a year, but you can pick a number that allows you to build the habit, build the skill, and then at the end of every year, you can increase that contribution by 1% to 2% of your income. That can actually make a big difference if you do it every year. And if you come into unexpected money like a bonus, a tax refund, or side income, you can channel that into your investments. Remember, the goal is not to overwhelm yourself. The goal is to take advantage of every opportunity to boost your retirement funds. And this is a marathon. It's about using your time wisely starting now, even if you started late. So here's what you need to do. Log into your 401(k) or IRA right now. And increase your contribution by 1%. That's it. Just 1%. Trust me, your future self will thank you. And now that you've built a solid foundation with conscious spending, cutting unnecessary expenses, and maximizing your contributions, it's time to put your money to work. A lot of people think that putting money into a 401(k) or IRA means they're investing. No, that money just sits there until you tell the money where to be invested. And this is where late starters often make a big mistake. See, because they're starting late, they think they need to take on big risks to catch up. Once you use the phrase catch up, you're screwed. That's because they start chasing individual stocks, crypto, trying to time the market. Guys, this is a losing game. I want you to instead Use the set it and forget it strategy. This is a simple, proven investment strategy. It builds wealth consistently over time. Instead of stressing over which investment to pick and manually rebalancing your portfolio, you don't even know what rebalancing is. One option is to use a target date fund for an easy, low-maintenance way to grow your money. Let me explain what a target date fund is. As opposed to having to pick individual stocks, A target date fund is one fund and it automatically adjusts your investments over time. That means as you get older, it becomes more conservative. It does it for you. It's automatically diversified, so it reduces risk over time and it includes lots of different stocks. You're not sitting there picking individual stocks and it requires almost zero effort. You pick a fund. The fund is named based on the year you're going to retire. You're going to retire in 2050. There's a Vanguard 2050 fund, Fidelity 2050 fund, Schwab 2050 fund. Pick a fund, set it up to automatically invest, and then forget about it. Go back to watching White Lotus. Here's how to set it up. Log into your 401(k) or your IRA account. Find the target date fund that matches your planned retirement year, for example, 2050. Then set up automatic contributions and make sure that money is being invested. That's it. Even investing a few hundred dollars a month will add up faster than you think. Step 4: Earn more to invest more. This step is one of the most powerful ways to accelerate your wealth. So I want you to listen carefully. A lot of late starters make another huge mistake. They focus all of their energy on cutting every last expense. Hey, if I dice these onions extra fine, then I can stretch it out. And if I put water in my toothpaste, that will help me stretch the toothpaste out. By the way, I'm telling on myself because my family did all these things. However, I think there are probably more powerful ways. All right. Saving money is great, but there is a limit to how much you can cut. On the other hand, there is no limit to how much you can earn. Have you ever thought about increasing your income? I don't mean, oh, I would sure be nice. I mean actually building a plan. To increase your income, which would allow you to invest more, build wealth faster, and create a big, comfortable financial cushion for your future. This is especially important if you're starting later in life. Here's how to do it. Number 1, negotiate a raise. If you have a job, negotiating a raise is one of the fastest ways to boost your income. But guess what? Most people never ask for a raise. They feel awkward. They don't know how to approach it. They assume their boss will just notice their hard work. That's a mistake. Employers expect you to negotiate. If you don't ask, you're often leaving money on the table. Now, you don't just walk in the room and say, "Hey, can you gimme some more money?" Instead of just asking for a raise, come prepared. Walk into the conversation ready to prove your value. Gather data on how you've improved the company. Show specific contributions and responsibilities you've taken on, and then confidently present the salary range that you have identified for someone like you. Now, let's say you're able to negotiate a $2,000, a $5,000, a $7,000 raise. This happens for my readers routinely. That money means a lot more money for investing. Next, start a side hustle. Let me say something controversial. Cutting out your daily coffee is not going to make you rich, but making more money very likely will. The good news is you don't need to reinvent the wheel to make more money on the side. Ask yourself, can I freelance my expertise, whether it be copywriting, graphic design, marketing, tech skills, AI? Can I monetize my knowledge by teaching an online course, consulting, creating a digital product? Can I take on gig work, whether it be TaskRabbit, Upwork, Fiverr? Lots of different ways. An extra $1,000 a month, which you invest consistently, can make a massive difference over time. Take a look at these numbers. And if you want to fast-track this, check out my Earn 1K program. I will show you exactly how to make $1,000 per month using skills you already have. You can check it out in the description below. The final takeaway: it is not too late. Yes, the best time to start investing was in your 20s. The second best time is today. Now, if you've been telling yourself it's too late, I want you to drop a comment with your age and the words, "I'm starting today." Let's prove that wealth is possible at any age. And the best part, once you hit $100,000, your investments actually skyrocket. Most people drift through their 20s and 30s hoping money just figures itself out. It won't. And if you hit 40 without the proper checkpoints in place, you're going to feel it. Today I'm showing you how to take control of your money and build a rich life before you hit that milestone without deprivation, without guilt, and without budgeting every coffee. In fact, I'm going to say it. If you put these 9 checkpoints in place, you will become richer than you ever thought possible. Let's start with our first one. Checkpoint number 1: zero high-interest debt. Let's get this out of the way first. If you're carrying debt above 6% interest, you are burning cash every single day. This isn't just about saving money. It's actually about getting unstuck. That debt is like a financial anchor. It holds you down. So your first job, cut the anchor. Here's what you do. List off every debt you've got. Credit card debt, student loans, mortgage. Personal loan, then find the APRs, those percentages you're paying that most people ignore. Tackle your debt using either the avalanche or snowball method, and whichever method you choose, do it aggressively. This is non-negotiable. You cannot build a rich life while dragging credit card debt behind you, and you will be shocked at how fast your money grows once this anchor is gone. Later in this video, you'll see how getting this part handled unlocks higher-level moves like investing and building your rich life. Checkpoint number 2: Have a bulletproof emergency fund. Real talk. If you lost your job today, how long could you stay afloat without panicking? 2 weeks? A month? That's not a rich life. That's a financial house of cards. Your goal is to build 6 to 12 months of core expenses in an emergency fund. That includes rent or mortgage payments, transportation, groceries, and put that money in a boring high-yield savings account. Not 2 weeks, not a month, 6 to 12 months of expenses. Now, I know most advice says 3 to 6 months is enough, and that might be true if your goal is just survival. But we're not playing just to survive. We are building stability, options, breathing room. That's what a rich life requires. And the psychological security of having that money just sitting there protecting you like a financial moat— game-changing. Let's move on. Checkpoint number 3: Reach full financial automation. Investing shouldn't feel like gambling. It should feel like breathing oxygen. Look at me. I didn't have to think about it. I just did it. It felt natural. That's how investing should feel. So the secret to getting rich is not about stock picks. It's not about crypto. It's definitely not day trading, you TikTok freaks. It's boring, automated, consistent investing. Now, here's your checklist. Contribute at least 10% of your income to investments. Max out your Roth IRA and 401(k) if you can. Automate your monthly investments. Do not rely on willpower. You shouldn't be sitting there, oh, I got to try to invest. No, you fucking invest like I breathe. And every December, increase your contributions by 1%. So if you're investing 7% this year, in December you increase that to 8%. That's it. Simple. Repeatable. Powerful. That is how real wealth is built. Not checking your bank account every time you order Pad Thai. Ooh, am I going to make it? I don't know. Hope I do. Not panicking when an unexpected bill comes in. Automation means you've already planned for those things ahead of time. Checkpoint number 4: Reach career mastery. This one's huge. Your income is your most powerful wealth building tool. So I want you to treat it that way. Start getting really good at your job. Let me stop you right there. I know what you're thinking. Oh, Ramit Sethi, capitalist sycophant. I can't believe he's telling me to work for the man. Do you freaking understand that the majority of millionaires in America made it from having a nice, stable salary and then investing their money in low-cost investments? They didn't win an insurance settlement. They didn't pick a lottery ticket. They literally had a 9-to-5 job and they took part of that money and invested. That's why it makes a lot of sense for you to pay attention to your career and build the skill of increasing your income. People should be lining up to work with you. Your boss should dread the idea of you quitting. And if that sounds unrealistic or makes you roll your eyes, then maybe this is the actual advice you should take right now. Building your career is a skill. If you want to make more, improve your career skills. And by the way, if you don't love your job, start figuring out what you would love. Here's how. Talk to 10 people who love what they do and they're paid well. Get really curious. Ask them smart questions about their career path and then set up 5 informational interviews with somebody 10 or 20 years ahead of you. Say, look, I'm curious about your career path. It sounds so interesting. I'd love to ask you a few questions. Now, when was the last time you did this instead of going online and complaining about inflation? You can do this. I believe in taking control of the things we can control. So do it this month. This one habit of taking control of your career path will completely change your financial trajectory. Quick pause. If you are finding this helpful, hit subscribe. This is the kind of advice I give on this channel. I'm telling it to you straight. No BS advice on how to make more money and how to use your money to live a rich life. And I have a lot more coming your way. Checkpoint number 5: You know your number and your why. Hey, what's your number? What number in the bank is enough for you? Is it $1 million in savings? $2 million? $5 million? Okay, but why? Why do you want that number? Do you want to retire early? You want a boat? Truly rich people know their number and they know their why. I'll tell you what, the idea of owning a boat is a special vision of hell for me. Oh, Ramit Sethi gets to go on this dinghy where it's super salty and I'm seasick within 5 minutes. Who the fuck wants to pay all kinds of money for that? No thank you. But that's just a great reminder of how your rich life is yours and mine involves zero boats. This is important to know what your rich life is, because if you don't know what that money is for, then you are simply wasting your life chasing a number. It's so one-dimensional, like all you can see is black and white. You're like a cartoon character. Oh, I want $1.6 million. And I go, oh, that's an interesting number. What for? I don't know, $1.6, $1.6. What the fuck is the money for? What is that money going to allow you to do? You going to travel 2 months a year without worrying about paying bills? Are you going to tip and donate to charity generously? Are you going to stay at beautiful hotels like Amman, Oberoi? All of those are fine. That's what we are really after here. Not a number in a spreadsheet, but much deeper than that. A rich life vision. That is your why. And that's what all this is building towards. Checkpoint number 6: Have a shared financial dashboard. You know, most couples wait until there is a problem to talk about money. Very few are sitting down proactively. Hey, let's take a look at the numbers. Let's discuss what's coming down next month. No, they just wait. I can't believe you bought that many potatoes. Do not be that couple. Start those conversations now and importantly, make them visible. This checkpoint is about creating a shared system where you both know your income, your spending, your debt, your investments, and what you are working towards together. When you do this, it's going to be much easier to be on the same page, and you're going to find your partner actually wants to be involved with the money. Here's how you do it. Schedule your monthly money talks. You can use the actual word-for-word agenda from my Money for Couples book so that you know exactly what to say. Next, use a shared spreadsheet, dashboard, or app for your key numbers. You can download my conscious spending plan in the description below. Get the template for free. And finally, review your rich life goals and your progress as a team. That means these meetings are actually fun because you get to talk about an amazing trip or a new couch you're going to buy or some class you're sending your kids to. That's what money is for. Also, I want to point out that if one of you is handling all the money, If you're the money person, that's a big no-no. It's a recipe for resentment. And if you happen to get hit by a bus one day, you're going to leave your grieving family not even sure where the money is. Can you imagine you're sitting there roasting in hell, flames all over you, and you're looking up at your grieving spouse and they're like, "Fidelity.com, where's the password?" And then they're looking up at heaven as if you're going to reassure them. You're not in heaven. You didn't share your financial goals together. That's why you're roasting down below. Well, anyway, I don't know if I'm the only one sweating in here, but that got a little morbid. Listen up. You don't need to be a finance nerd, but you both do need to be involved with the finances. This isn't just something that's nice to have. Your finances are a system that can actually bring you together. And when you have that system working smoothly, you're talking every month. This avoids years of miscommunication and frustration. Remember, you choose. Money can be a source of conflict or a tool to build the life that you both want. You choose. Checkpoint number 7. You've created your no list. Does anyone else enjoy saying no as much as I do? Well, let me share why. This one is underrated and honestly, it's one of the most powerful moves you can make towards building your rich life. You don't have to care about everything. In my 20s, I shared an apartment because I wanted to live in an awesome neighborhood. I didn't care about fancy clothes. I didn't care about fancy watches. So I didn't spend any money on those things. Now, in my 40s, my priorities have evolved. I still spend intentionally, but I spend differently. You'll notice I don't care about watches still, but I do care about other things now. And that's the point. The things you like today You're allowed to change your mind tomorrow. So this checkpoint is about clarity. It's about knowing what doesn't matter to you. Here's what you need to do. Write down 3 things you don't care about spending money on. Okay? Then write 3 things you want to spend money on unapologetically. That's your no list. Now, let me give you a quick word of caution here. I know what a bunch of you nerds are about to do right now. I don't care about owning my own spacecraft. Uh, yeah, I don't think any of you are at risk of accidentally tripping and falling and buying a $70 million space rocket, okay? Get real. Uh, I don't think I need, uh, my own private jet. Uh, my friend, you flew Spirit Airlines last weekend, okay? Nobody thinks you're about to get a private jet. Be real with the things you actually don't care about. And if we're really being honest, you should take a look at your actual spending and be like, holy shit, I actually don't care about this thing I'm currently spending money on. So why am I doing it? Once you know what is not part of your rich life, then you can cut those things without guilt and you can actually redirect that money to the things you actually love. This single list can save you tens of thousands of dollars $1,000, and it can free you from years of internal money drama. And the best part? Your no list evolves as you do. Checkpoint number 8: a simplified credit card assortment. You don't need 9 credit cards and a spreadsheet to manage all of them. Okay. Oh, hey everybody, today I'm going to Costco. And so when I'm in Costco, I need to make sure I get 3.5% cash back. But then when I'm buying the Wonder Bread, that's only 1.5% cash cash from. So I'm going to swap this card out, but for the first $60, I'll use that card, but then this, because then I can get lounge access. Get a fucking life. This is a waste of time and it's causing you to play small. Do you really want to spend the rest of your life optimizing a spreadsheet of cashback rewards? All right, here's what you need to do. Keep 1 to 2 solid rewards cards. I made a video on my specific favorite cards, including the ones that I use. I'll link it for you in the description below. Cancel those junk cards, including those predatory shit credit cards with 30+% APRs that you got from Gap and Kohl's to get $10 off a subpar pair of jeans. And then monitor your APRs or your interest rates like a hawk while you're paying off debt. For those of you who are debt-free, good job. And also, your APRs don't really matter when you pay your bill in full every month. Remember, a simplified wallet is a richer wallet. In other words, If I ever meet you, I'm not going to say hello. I'm not going to say my name is Ramit Sethi. I'm going to say, pull out your wallet and show me what you have in there. If you pull out a fat George Costanza wallet that has 13 credit cards, okay, and you go, look, Ramit, I'm optimizing. I get a total average value of 2.6% cashback. I'm literally going to turn and walk away. We will never speak. Checkpoint number 9: Have your financial vision in place. Now, your rich life vision will evolve. What you want in your 30s will almost certainly shift in your 40s, and that is a good thing. The goal is not to create a plan that's in concrete, locked in forever. It's to create a direction, something to aim towards, and to update it as you grow. So I recommend you revisit your rich life vision once a year, and you can ask yourself these 3 questions. What do I want more of in this coming year? What doesn't matter to me anymore? What do I want less of? And finally, what's next? That's what money gives you options for your rich life. Now, these 9 checkpoints are your roadmap. They're not about guilt. They're about alignment. If you're under 40, start working on these now. And if you're over 40, don't worry. You're not behind. You've just been operating to this point without a roadmap. Now you have one. So I recommend you start today.