Millionaire Reacts: Living On $60K A Year In NYC | Millennial Money

welcome back to the Graham Stefan show my name is Graham and welcome to my show and something amazing has happened recently have you seen the views on the last few videos that I posted on this channel reacting to millennial money it's incredible it's insane this this is going to turn into basically the doctor film meme of the finance industry is just let's look at millennial money and just react to it I can't believe it so anyway we're gonna keep this going as long as people want to see this and as long as people like it and watch it I'm gonna keep I'm gonna keep milking this until there's no more left until you guys are sick and tired of this but until then as long as everyone still enjoys it here we are and you know what something also interesting has happened lately you know what happens when you go and visit a YouTube channel and then YouTube is like no go and see this video we want you to see this now because you like this one but watch this YouTube has been doing that to me non-stop with this video living on 60,000 a year in New York City millennial money no joke YouTube is like every hour watch the video watch the video watch the video I haven't clicked on it because I do all of this unscripted none of this is like planned out ahead of time I don't watch the videos beforehand so I've been resisting to watch it fine I give in I'm gonna watch it and I'm gonna react to it so if YouTube wants me to see more videos all you got to do is recommend this to me and I will go and see it so here we go living on $60,000 a year in New York City millennial money make sure to always hit the like button and let's start this off I live very very comfortably with love that cat mug love that cat mug the thing is it she's making sixty thousand a year in New York City she could make sixty thousand a month drop shipping this cat mug on Facebook and Shopify right I mean alex becker would have a field day with this mug where sixty by the way i realized we both got coffee here you can find very nice places to live on a good budget being a actress dancer singer you have to keep up your dancing and acting and singing so there's a lot of extra costs that come in to keeping your alright here we go here's my favorite part in this entire series let's look over the budget and figure out where she's messin up here let's start with rent nine hundred and twenty dollars a month utilities split three ways wow that's amazing an upper manhattan to pay nine hundred and twenty dollars a month i don't care if you have roommates the fact that you can spend nine hundred twenty dollars a month and live in Manhattan she gets an A plus plus she got a hundred and ten percent right there cuz that's amazing okay next voice and dance lessons four hundred and seventy dollars you know what I think that's reasonable I think that's not only her profession and I think that's a hobby and a passion of hers I'm all for that I don't think that's unreasonable at all Recreation recreation recreation let's be very clear record not recreation anyway recreation that's dining out drinks coffee and crafting four hundred and thirty three dollars a month seems a little high I'm gonna say that's a little high considering that's nearly half of her rent budget is basically dining out drinks coffee and crafting I bet you can get that down to half like you don't need to be buying drinks at the bar it's so much easier by the way you just pregame at home you get a little buzzed you go to the bar and then you just order a glass of water that's been my life hack basically my entire life I almost refused to buy drinks at a bar unless it's like a last case resort where I'm just like it's gonna be kind of weird if I don't get a drink you know drink at home go to the bar and you cut your costs down by next to nothing I'm coffee there's no way that she's making her coffee at home I mean it there's this my brain is just fizzling out here at making coffee at home should maybe be 20 cents a cup 30 cents a cup I have a feeling she's getting coffee elsewhere which she doesn't need to do if she can cut that out okay grocery is $200 a month fine savings one hundred and fifty dollars a month in savings she needs to get her savings up I mean it I don't know what her plan is for ever retiring that's what I'm worried about because right now she's gonna have to work indefinitely for the rest of her life there is no retirement here unless she unless she marries someone with money it's just it's not gonna pan out so that's something we got to work on I'll continue watching the rest of the video because so far everything else I see is reasonable it's just the savings too low and recreation in my opinion too high on a usual night I'll make about 250 to 300 dollars usually there was a day actually just a couple months ago where me and my partner each made $800 just watch my detective work here so she said fifty to fifty five thousand dollars a year comes from serving okay fine but if she's making two hundred and fifty dollars three dollars a night let's say she's working eight hours ten dollars an hour before tips eighty bucks that means that the majority of her income is coming as tips because before you know I'm adding up her expenses in my head and it comes to about thirty four thousand dollars a year we call that the burn rate that's how much money you spend just to live that's your burn right there thirty four thousand a year so I just did some calculations here I just cut that out to see if sometimes so anyway basically we're gonna assume that she's making $60,000 a year she not claiming a lot of her tips and her tax bill at the end of the year is gonna be about eight thousand dollars okay so she's left with fifty two thousand dollars a year divided by twelve forty three thirty three a month let's just say forty three hundred ollars a month okay that's how much she's making net after paying taxes now if she's claiming all of the money in taxes if she's doing what she's legally obligated to do then she really doesn't have much money left over there's like an extra three hundred a month that is probably just you know it's that we called that the phantom drain it's basically just money that you just spend without even realizing it so she's not really left with much over but if she's not claiming all of her income on taxes she's up with a considerable amount more it seems like with everyone there's some money in here that's just unaccounted for because we got fourteen hundred and seventy dollars a month extra assuming she's not claiming all of her taxes on tips which I don't know any server by the way I don't know a single server who claims all of their tips right I don't do you do you I don't okay it's really hard actually being a dancer in New York City when I go to a audition open calls usually have around 300 girls there at least usually on a contract non-equity dancer singers actors will make around 350 to 500 a week even though I do make less money when I am dancing and acting it's what I live for okay so this is something I think we should elaborate on a little bit further because it's so difficult to make money from a passion because passion by definition is something that you just love to do that it becomes a part of who you are and your identity turning that and monetizing it into a business is what's needed to make money we should separate this from she's doing this for the money or she's doing this as a passion and I get it I I know some artists that are amazing at doing art and they love it but they don't make any money because they don't think of it like a business they think of it like I just love art and I love doing what I do and you know I'd love to make a living out of it but I can't because I don't think enough money and the reason why is because you're not treating it as though it's a business and that's something you always have to do which by the way sometimes if you treat a passion like a business it loses the passion it once did which is a very fine balance and now we're getting into the nuances of of life basically at this point that I'll say for another video but that's my rant on that I like to keep five thousand dollars in my checking account and then whatever is external transfer over into my savings account okay so let's let's start in here okay five thousand dollars in a checking account whatever is left over goes into a savings account I don't like that because I don't like the whatever is left over I don't like people saying well whatever is left over then I'm gonna go and save it I never liked doing that she should be flipping that around whatever she gets paid she saves first spends later if she does transfers not what's not what's left over but a set amount every single month you know I'm gonna change $500 a month every month from my checking to my saving no matter what happens and then I'm gonna live off the rest that would improve her savings rate dramatically because I'm worried it's psychologically whatever is left over there's no urgency there there's no mandatory I gotta I gotta move money over to a savings I gotta pay myself first it's whatever's left over what if there's nothing left over oh well I don't like that if she just switch to that up right there she would be in a much better position I nearly guarantee that I have just over ten thousand dollars amazing means okay so ten thousand dollars in a savings account that okay so that makes me happy because that is basically she's got a few month emergency fund right there I just hope it's in a high interest savings guy if this money is sitting in like a Wells Fargo savings account earning point one percent interest I'm gonna be really upset if you want to trigger me that's all you have to tell me that you're not making at least two percent in interest every single year from a savings account if you're not doing that you're gonna trigger me and you don't want me upset is because I get we're gonna end it there I try not to use any credit cards at all I'll use a credit card on a big purchase Wow Wow I don't even know what to say I I don't know what to say about that I don't like that at all tries not to use credit cards but uses it on a big purchase probably because she doesn't have the money or she doesn't to spend all the money right now to buy it that's terrible that's terrible if this person is ever watching please go through my main channel go and watch my credit card videos just rack up points just get the points build your credit score now is the time to do this now it's like even 32 years old now should be the point where you really take it seriously you hunker down you build your credit score every single cent right now that you spend should be put on a credit card everything no matter what and then you pay it off in full don't wait and save it for the big charges now everything is on a credit card that upsets me that got me triggered I do not have any retirement which is not so great but she's but it's it's not too late she's behind she can catch up she could absolutely catch up if she changes today I have 30 years to get a retirement fund you know I thought in the beginning I'm like okay she's doing okay it's not that bad you know whatever I thought it just crashed and burned crashed and burned between the the checking and the saving we don't know if that's high interest and not spending a credit cards to the nohrin no retirement plan and then saying I have 30 years to do this I'll be fine and you you can't that's not how it works that's not how it works this isn't something that you can say well I have my entire life to do this because your life is gone in the blink of an eye and in you're 60 and you still have nothing she seems like the person to me that is really about following her heart you know to me her life seems like she's not made it about money she's made it about her passion and her dreams and following her goal there's nothing wrong with that okay let me make that very clear there's nothing wrong with that but from a financial perspective she does need to pay the bills and make sure she's taken care of financially and that includes sacrificing some of that you know passion in exchange for figuring out like how could they make this sustainable long term so that I'm not going to be seventy years old and still working because I had nothing saved up and there's little tiny changes that she could make that would make a very long-term difference even starting today for her a Roth IRA would be perfect his chances are she's not claiming a lot of that income she's not in a high tax bracket start a Roth IRA move some of that savings into a Roth IRA like what she mentioned what's left over in her checking this goes into her savings now I want every month three hundred dollars every month three dollars find a way to cut that out somewhere goes into a Roth IRA then immediately start using a credit card for all of your purchases just those two would really really help her dramatically I hope she sees this coffee is made my big splurge I definitely have a lot of coffee I usually probably spent a hundred dollars a month at Starbucks she's making coffee at home it's $100 a month it's Starbucks cut that out I'm gonna tell you right now I don't care how much you enjoy Starbucks you cut that out right now right now $100 a month immediately should be going directly to a Roth IRA I hope to have been able to play more roles in shows that I would love to do like I make less money when I'm dancing but it makes me so happy that making less money is worth my happiness I agree with her and I think that's totally true I think it's worth finding a balance between what you love and how much money you make and if you make a lot of money but you sacrifice your own well-being it's just it's not worth it overall I think you know she's doing the best she can I I would just recommend she's got to get her finances in order just 25% better all I'm asking if she watches this first of all make sure you're in a high interest savings account I want you to earn 2% or higher okay that would make me very happy secondly put money on the credit card immediately you want to build your credit score I want to see her credit score it like an 800 in a few years and she should even start doing credit card churning you know she's not buying a house obviously anytime soon so she may as well to start churning credit cards putting this 500 our boots on a credit card getting the points and at least getting some free travel from it you know you she can get some free stuff from that and then third what you should really be doing is open up a Roth IRA cut out the Starbucks entirely let's face it you can do without the Starbucks you don't need the Starbucks other than that I think you know the main thing is just long-term sustainability okay at 32 I think it's about time where you start thinking to yourself where do you want to be in 30 years do you want a family do you want to own a home do you still want to live in New York how are you doing how do you plan on making money do you ever want to retire at what age do you want to retire I think all of these things are really important to consider this is not something to think that you're 32 and can do this anytime you want because you're still young kids life goes by very very quickly and I think it's very important to consider this stuff now and plan now the sooner you planned easier it's going to be it's gonna be 10 times harder for her to do this and another few years then if she starts right now and overall it seems like she's a really passionate person she's a happy person it seems like she's very content with everything so I mean at the end of it that's really what matters the most she's not miserable she doesn't seem like really stressed out over anything and I think she's kind of going with the flow and you know if that works for her you know that's great but there are a few little tiny changes that I mentioned that she can do with no difference to her life really whatsoever I mean what's cutting out some Starbucks and that's it that's all I would do so with that said you guys thank you so much for watching I really appreciate if you guys make this very energy haven't already smashed that like button destroy the like button subscribe if you're not subscribed already hit the notification bell by the way so YouTube notifies you anytime I post video also feel free to add me on Instagram I post there pretty much daily so if you want to be a part of it there feel free to add me there thank you again for watching and until next time

Channel: The Graham Stephan Show

Views: 660,920

Rating: 4.9182153 out of 5

Keywords: investing, investing for beginners, investing in the stock market, investing 101, how to invest in stocks, how to invest in stocks for beginners, how to invest in real estate, how to make passive income, passive income ideas, how to make money online, roth ira, roth ira explained, how to save money, how to save money fast, millenial money, cnbc, how to invest money, investing in real estate with no money, 401k, 401k vs roth ira, how to start a business, passive income online

Id: G34g6JM3MNE

Length: 16min 36sec (996 seconds)

Published: Sat Jun 08 2019