Millionaire Reacts: Living On $39K A Year In Oklahoma | Millennial Money

welcome back to the graham stefan show my name is graham and welcome to my show and today if you could tell i'm in a really good mood it's because i think we did it guys we finally cracked the code as to when cnbc make it poster millennial money episodes it's every other thursday morning guys could you believe it it only took me like a year and a half to figure this out but it's every other thursday that they post these episodes so as predicted i woke up this morning like you know what they're gonna post millennial money and sure enough they did they posted this video it's called living on dollar sign 39k a year in oklahoma wait for it millennial money so with that said guys let's smash their like button for the youtube algorithm let's now get by the way our three free stocks down below in the description when you deposit 100 and weeble wow guys three free stocks it's crazy that's crazy seriously if you have not gotten three free stocks yet for signing up go do that down below and with that said let's start the video right here yes it is embarrassing because i'm 32 and i live at home but there are reasons why i still live at home i don't think there's honestly anything to be embarrassed about when it comes to that he's got the ultimate house hack you see me always talking about how i bought a home for zero dollars i was able to do this for zero dollars this is the way to do it and i tell everybody seriously if you have a good relationship with your parents and you like living there and there's no pressure for you to move out of the house stay as long as you can save up as much money as you can and then when you're ready to leave and it works out then go and do it i do think there are benefits to moving out on your own there's a sense of independence that you get and just a growth as a person when you move out of the house that's true but you save so much money so there's got to be a balance you got to save a whole bunch of money first and then when you're ready you go off and you use those millions of dollars that you saved up from not paying for rent and then you could go and buy properties cash that's the way to do it i'm unofficially a paralegal we work for attorneys who represent our state in child support hearings and proceedings i prepare legal documents prepare for hearings and do case research for them our agency as a whole transition to work from home well he bites his nails too much i i had a habit of doing that when i was uh gosh she must have been like second grade second grade and i here's the thing it started off because i didn't like using nail clippers i kid you not it was weird i just didn't like the nail clippers so what i do is i would just kind of bite my fingernails to to trim them like naturally but then one time i i bit it too short and it it stung it stung for a while so like after that it was it was good after that but uh ouch we grew up somewhat poor we lived on less than 700 a month for a lot of people money is of utmost importance but as a kid all i remember is my sister and i enjoying our life and my mom and my dad giving me the love that any parent should give and that's all that mattered oh it sounds like he had a great upbringing though i mean that's the thing for a child it really doesn't matter how much money the parents have especially if the child does not see the struggles the parents are going through i mean maybe behind the scenes his parents are really worried about finances i'm sure they probably were but to give him the support that he needs that's i'm sure that's everything so it goes to show you if anything now he's going to have a greater appreciation of money for saving for investing so i hope that's translated over here now that he's able to sock away a lot of that money invest it save it and then he's going to be financially independent from doing this right after high school my dad had developed a gambling addiction and we were behind on our house payments we were foreclosed on a few times due to that there were times when you know my dad would have to borrow money from me and i never refused because as i said my mom is my rock and we were able to get through it together he's a great son and it's a shame to go through that i have a good friend went through was still going through a pretty bad gambling addiction i gotta say it's uh it's not pretty to go through it's it's these just endless cycles of sometimes losing money but then you also win money and those little wins kind of give you that hope to keep on going you lose that it's not good it's not good if anyone is ever suffering from like a gambling addiction seek help for that not easy but it's the right step something like that i pay for my food expenses thankfully with family i get a deep discount on rent but i pay for my car payment my auto insurance phone bill all right so first we got savings a thousand dollars a month and you know in in this area it's going a long way i have a feeling he just gets a few years of this down he could easily just buy it buy another house he could he could even do like a multi-family that's what i would do if i were him save up enough to buy maybe like a duplex triplex or something with like a separate basement he could rent out that would be an amazing living situation if if him and his family could live in one of the units he buys it and then he could rent out the other side to kind of pay some of the overhead he could reduce her spending and he's going to be building equity uh by owning real estate i think that's fantastic yikes transportation 504 dollars a month car payment gas insurance that's a lot see i would say for for someone i wonder what car is driving i would say for someone like him he could easily buy like a used toyota corolla honda civic something like that uh just get a car that's under like seven grand at that point you could probably just pay it off in full eliminate the car payment altogether and then it's just gas insurance and maintenance so transportation i would say is it's a decent amount and then we got debt repayment 275 dollars a month ooh credit card debt and a personal loan and here's the thing it seems like he's going to be smart with money so i bet this is probably just a hiccup that came up along the way and he's working to pay it down i'm a little bit surprised though i would bet credit card debt in a personal loan would be at a higher interest rate than what he's getting from his savings so if i were him i would be reducing the savings but applying that towards the debt repayment maybe a lot more than 275 a month uh then we got investments 175 dollars 401k i hope that's the 401k match because otherwise if it's not i would suggest them to do the roth ira instead especially for his uh tax bracket the roth ira would be the best option because he's still pretty young i think we got food 160 a month fantastic shopping 130 a month could be worse rent i love this 100 a month pays parents amazing amazing phone 75 a month good subscriptions 29 a month amazon prime netflix and spotify overall it's not bad at all it's just the debt repayment that worries me a little bit there are some months when i might buy a shirt or a pair of jeans or a new pair of shoes but it typically just goes to my bank account my philosophy is i never know when i will need it so i should probably save it that's good my only thought though only thought is that maybe instead of saving we don't know how much money he has in savings maybe he should be investing a little bit more than that that's it but let's see i've initially wanted to be a nurse since i enrolled in college but i didn't have confidence in myself so i pursued another major that i knew i would excel in history political science and when the pandemic hit it made me realize that life is too short and i need to pursue my dreams a few years ago i had a health scare where i was diagnosed with type 2 diabetes so i started losing weight and i was able to stop the type 2 diabetes way to go he gets a smash like button for me on that that's fantastic and then i realized that's what i would enjoy doing with other people is making them realize that they can change their life oh that's awesome that's a fantastic career he's going to be making significantly more money doing that and in the chance he ever wants to move somewhere else that job ain't going anywhere there's always going to be demand for that he could basically take that skill anywhere in the united states without any problem and he's going to make a lot of money for doing that he [Music] perfect i looked at debt like it was nothing i applied for as many credit cards as i possibly could basically allowed myself to drown under the debt because i didn't have the income to make the payments oh that's rough those student loans 22 000 of student loans i don't know how is this legal i don't get it how do they let someone just out of high school 18 years old get into six figures of debt at 18 you're a teenager and they're like yep how much money do you want to go to school 100 grand here you go here's 120 get a little bit more i don't get how they do that and they just suppress these just their ability to save and invest and it's like this ball and chain that just sticks with you for sometimes decades for you to pay that thing off it's to me it's absolutely it's it's i don't want to say it's a scam but they certainly i think take advantage of the situation because they know they can get away with it and they know how many people prioritize going to college getting that education and i i think it's horrible horrible horrible trade schools need to be uh talked about way more community colleges need to be talked about way more too and just self-education those three those three things right there i think would solve a lot of problems i was paying 100 a month until the pandemic hit and then of course the government deferred those loans until january 1st and after january 1st i will defer them for two more years for nursing school once nursing school is over i will start paying them off and i hope to be debt free by the time i'm 36. all right that's fair so as long as it's zero percent interest i could see him just deferring those payments and then saving money in cash at least now he's gonna have a bit of a cash reserve he should be investing some of that but then when those loans come due hopefully i would just knock those out i can't see how those loans wouldn't be under like six seven eight percent interest so if that's the case just apply everything you can towards paying off those loans as soon as possible and just be completely debt free at 36. i intend to pay off my car loan which will be seventeen thousand five hundred dollars 17 500 car loan that's why it's so much i hate to say that's too expensive of a of a car for him to be driving on on his current income that money would be such better suited for investing now i know he's already got the car this would be something i would and i've taken a lot of calls like this on the gram stefan show too this is a situation where i'd say it might be worth it to sell the car and buy a used one for a third of the cost spend under like five six seven thousand dollars max for maybe a six-year-old used car that's highly reliable gets good gas mileage and and just have that sucker paid off that's probably the best use in this situation here because 500 a month for a car payment with gas insurance that's like 50 of the savings right there goes to the car right personal loan consolidating old credit card debt okay good that's the only thing that i then i'm like okay i get it now here's how that works let's say you have multiple credit cards uh with with balances on them and that interest rate is like 20 well you could go and get a personal loan at 10 to pay off those credit cards at 20 so you save money in that stuff it's not the best but in that situation it's better than the alternative it's kind of picking between uh what's bad and what's worse he'd rather bad than worse so this is what happened here so from all the things he's done at least he's saving money on this i just knock these out i'm not savvy when it comes to investing i do have a 401k through my job but beyond that i'm frightened to invest money because i don't want to lose it he's got to get over that unfortunately fifteen thousand dollars saved in a 401k is great don't get me wrong he's got to get over the fear of investing here's my issue with this right now he's making 39 000 a year when he takes the standard deduction he's really in in i would say one of the lowest tax brackets out there so he's saving money by investing it in the 401k in the lowest tax bracket possible he should instead just be investing in a roth ira because he's got another 30 years let that money compound and grow and then all that money is going to be tax free versus he's going to have to start paying tax on this money when he retires and i have a feeling his income is going to be going up tax rates are going to be going up and i have a feeling it's just a suspicion he'll probably end up paying more money in the future than he's paying today in taxes which is the downside of this so already he's not spending a lot of money on taxes you may as well utilize the roth ira instead unless his employer offers a 401k match and get over the fear of losing money because yes you invest you have a chance of losing money but long term the s p 500 has never once produced a negative result over 20 years ever in its entire history through many just famines and wars and just political issues through everything 20 years it's always posted positive no matter what happens he's going to be investing consistently and his chance of losing money over let's say a four to eight year period is pretty much non-existent as long as he just continues investing like every week every month keeps buying into the market dollar cost averaging i would be shocked if he was losing money after like five years shocked in a worst case scenario i have 35 000 in my savings oh too much too much too much too much too much too much oh no no he's got to win fast he's really got to invest his money here's the thing i would say in his position if he wants to have a year of an emergency fund a year do it all you got to do figure out what you spend what your overhead is for an entire year save that up in cash throw it in a high interest savings account that's going to give you a lot of mental just relief got a year's worth of savings you never have to worry about anything you're going to be good invest the difference in a worst case scenario let's say the stock market drops 50 well you got a year's worth of income already saved up there that you could start paying off before you even touch any of your investments he's taken more of an emotional approach with this and when he thinks logically about this he's leaving a lot of money on the table and uh we got to turn that around politics has been an interest in mine since i was 14 years old when i was able to serve as a page for my state senator in oklahoma city so i always ask and encourage people to exercise the right to vote good timing good timing of this video this is a reminder for everyone to vote no matter who you're voting for i think it's just important get your vote out there so do that my hope is to move to los angeles because i was out there on vacation a few years ago and it was the only place that i've ever been where i've felt free i could be who i am without fear of judgment i'm actually i'm openly gay it would just be nice to live in an area where i can walk down the road with my partner and not feel like people are staring at us that's really one of the things that i really like about la is just the acceptance of everybody the diversity here just the difference of viewpoints and religions and ethnicities and just interesting what it's la is really like this melting pot of everybody so i i really like that and from that perspective oh it could be a great place in five years i want to have a master's degree in nursing and i'm hopeful that i will be a nurse practitioner somewhere in this country practicing preventative medicine i hope people realize that if they're making 25 000 a year they can still save it's not the end of the world they are no less than the person who makes a hundred thousand or hundred and fifty thousand dollars a year great video i like this one because it feels like a very just realistic video it's not someone who's making 60k hyper focused on saving every dollar it's not someone making like a few million dollars a year it's like i like this one because this is like a real world situation and it's just this is what a lot of people are going through this is a great episode it deserves more views i don't know why it's it's been out for a few hours that's 9 700 views this one i think deserves way more and listen he's making a few mistakes here it's really just the car that's not that's too much uh the 401k i'd swap that for a roth ira unless it's an employer match and i'd be investing more so there's three things that's it just three things he should really be improving on if he gets these down he's going to be fine so if you're watching this by the way if you want to come on the gram stefan show we'll talk about investing we'll talk about savings if that's something you're interested in just reach out to jack it's j l s celt wait is it jls sell either the 2s is jack jls selby on instagram he's going to put it right here just reach out to jack on instagram and uh he'll coordinate with this and we'll get you on the show and we can talk if that's something you're interested in if not no hard feelings but if you are we can we can make that happen so with that said you guys thank you so much for watching i really appreciate it as always make sure to destroy the like button subscribe button and notification bell also feel free to add me on instagram i posted pretty much daily so if you want to be a part of it there feel free to add me there as in the podcast the iced coffee hour new episodes being posted every single sunday morning at 9am and lastly if you guys want three free stocks use the link down below in the description and weeble is now going to be giving you three free stocks until the end of the month with those stocks potentially worth all the way up to 1 600 so if you want those stocks use the link down below let me know which ones you get thank you so much for watching and until next time

Channel: The Graham Stephan Show

Views: 177,909

Rating: 4.9665842 out of 5

Keywords: investing, investing for beginners, how to invest, how to invest in your 20s, how to invest in stocks, how to invest in real estate, how to save money, how to save money fast, how to be a millionaire, best stock trading apps, stock market investing, stock market investing for beginners, investing 101, real estate investing, robinhood, how to build wealth, how to build wealth fast, passive income, millionaire reacts, what i spend in a week, millennial money, watching ads

Id: 1qaJIzZBruM

Length: 18min 44sec (1124 seconds)

Published: Sat Oct 24 2020