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How Much Money Do Americans Need To Be Comfortable?
*Topic : Finance
*Length : 12m 13s
*View : 2.1M
The average American says they need to earn $233,000 a year to be financially comfortable. But in 2021, American workers on average made only $75,203 annually. With well over half of Americans living paycheck to paycheck, many are struggling to meet some of their modest financial goals. 72% of Americans said they currently weren’t financially secure, and more than a quarter of Americans said they’ll likely never be. So how did it become so difficult to be financially secure in America and what can you do about it?
😰 Over 72% of Americans feel financially insecure, with more than a quarter believing they will never achieve financial security, indicating widespread anxiety and uncertainty about the future.
💰 Over 46% of Americans' median pretax income is spent on rent, classifying them as rent burdened.
🏠 The average American spends a significant portion of their income on essential expenses like food and housing, leaving little room for other necessities such as transportation, child care, and debt payments.
💰 Many Americans are struggling to meet the recommended budget allocation of 50% for essentials, 30% for wants, and 20% for savings or debt repayment, due to rising costs and limited income.
💰 More than half of Americans today said they didn't have at least three months of emergency expenses saved, including 22% that said they had no emergency savings at all.
💰 The fact that many Americans are living in financial insecurity poses a big risk to the economy as a whole.
💰 Public policy plays a crucial role in improving Americans' chances of achieving financial security, such as Social Security being the bedrock of most people's retirement income.
📝 Having clear financial goals and aligning them with a budget is crucial for achieving those goals, whether it's retiring early, paying off debt, or saving for education.
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7 Investments Will Reduce Your Taxes Immediately
*Topic : Finance
*Length : 12m 25s
*View : 234K
Tax Deductible Investments That Will Reduce Taxes Immediately. It is very hard to build lasting wealth when you are giving half of your income away to Uncle Sam every single year. When earn high-income, you have to fight taxes to keep what you earn.
💡 "The ultra-wealthy understand this and are able to pay almost 0% of their income in taxes but you don't have to be ultra-wealthy to actually accomplish this."
💰 Tax deductions reduce the income reported on your return which in turn reduces your tax bill.
💰 Investing in a traditional 401k through your business or side gig can lead to greater tax deductions and lower taxes.
💰 Contributing to a traditional 401k account can create a $233,000 tax deduction, allowing you to grow your wealth at a much faster rate.
💸 Health savings accounts allow you to invest your funds into assets like stocks or bonds, providing a unique opportunity to grow your money while also receiving tax benefits.
💸 Donor-advised funds allow you to invest the funds in the account to grow the balance over time, while still receiving immediate tax deductions based on your contribution.
💰 Owning a small business not only builds wealth quickly, but also allows for significant tax reduction by deducting all business expenses before paying taxes.
🏠 The ability to deduct mortgage interest, property taxes, and other expenses makes real estate one of the best tax shelters in the world.
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How Much You Should Have in Your 401(k)—By Age
*Topic : Finance
*Length : 11m 02s
*View : 167K
Have you been saving enough for retirement? In today’s video, we’ll look at what average Americans have saved for retirement by age so you can see how your nest egg stacks up.
💰 You don't need anyone's permission to start saving right now to make your retirement dreams a reality.
⏳ Investing 15% of your income starting in your 20s could lead to $1.3 Million by age 55, thanks to the power of time and compound growth.
💸 If you're 35 and started investing $625 a month at age 25, you could have around $131,000 in your retirement fund, putting you on track to retiring a millionaire.
💰 If you started investing 15% of your $59,000 salary at age 40, you could still retire with a million-dollar net worth.
💰 Take advantage of catch-up contributions in your retirement accounts to increase your savings in your 50s.
💸 Many Americans simply aren't prepared for retirement, as this amount is nowhere near enough to cover their needs.
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