Humphrey Yang
@Humphreytalks • 16,930 subscribers
🎥 Personal Finance YouTuber: DCA & Chill. 📧 Newsletter: https://t.co/WSpdwbFduG
Videos
How Long Should You Keep Your Car before getting a new one? Here are my thoughts 💭
Humphrey Yang38,852 görüntüleme • 12 gün önce
💰 If you can hit the $1 million dollar milestone, here’s what no one is going to tell you: 1️⃣ First, it’s rare. Only about 18M US Households have a net worth over 1 million, and most of them have it tied up in home equity. 6 million US households have $1 million in liquid net worth. Using the 4% rule - you’ll be able to generate about $40,000 a year with this sum, and if you’re able to add in social security payments as a household, that could put you at a yearly income of around $80,000 per year. 2️⃣ Second, in most scenarios, you get to $1 million with the market working for you. If you invested $1000 a month, for 25 years or so, you would have contributed $307,000 while the market put in the remaining $693,000 dollars. More than 2/3 of your million was created by your own money doing the work. 3️⃣ Third, very little will change when you hit $1 million. The feeling of hitting it usually fades within weeks, because people adjust to new wealth fast - and just because your wealth number ticks up, doesn’t mean that your life changes instantly. 4️⃣ And fourth, the swings are crazy. If you’re down 3% in a million dollar portfolio, that’s $30,000, and that could happen in a single day. Technically this is the last of my milestone videos, but if you want to see a $2 million milestone video - let me know in the comments, and thanks for watching!
Humphrey Yang25,175 görüntüleme • 17 gün önce
👀 This is too much money to have in your emergency fund. Assuming your burn is $4000 a month, overfunding your emergency fund is a wealth killer. I know people keeping $80,000+ in a high yield savings account because it makes them feel better, and they like the idea of having more of a buffer between them and a catastrophic emergency. But when you have 16-24 months of expenses parked in cash, that excess money is costing you in terms of opportunity cost. Say your monthly expenses are $4,000. A 6-month emergency fund is $24,000. A 16-month buffer would be $64,000. That extra $40,000 sitting in a high-yield savings account at 3.5% instead of being invested at roughly 9% could cost you about $145,000 over 20 years. The point is just to be intentional about how much you actually need. Anything beyond 6 months that you're holding in cash could be a symptom of having a scarcity mindset.
Humphrey Yang15,219 görüntüleme • 15 gün önce
Daha fazla içerik yok.