Is the American Dream Now Completely Dead?

Is the American dream really dead? Today, I’m going to give you some actual numbers on what your future looks like — and some of it's going to surprise you. Stick around too, because I’ll give you the exact strategies I would use if I were in your shoes.

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Ramit Sethi is the host of Netflix’s “How To Get Rich” and New York Times bestselling author of “I Will Teach You To Be Rich.”

[thebigob]

Ramit dear, as someone who has been in higher ed for 30 years and has worked in financial aid for almost 20, I would like to clarify the whole scholarship issue.

Some schools, mostly private or Ivy, have lots of scholarship funds to offer. HOWEVER - these are mostly merit based or incentive based at admissions and either don't cover too many students at all OR they don't cover the student enough for their full enrollment OR they don't cover the student through the full four years. The vast majority of scholarships have qualifiers attached and if the student loses any of those qualifiers during enrollment, the money goes away...

In my whole career, I have only seen TWO full ride (non-athletic) scholarships that cover the student's full tuition, fees, room and board. The rest were a few thousand here and there and the student still had to come up with the rest of their bill with other aid or loans.

I see parents and students EVERY DAY who are surprised at the fact that they have to pay so much for college. They ALL thought the university was going to cough up some money to assist. So many books sell them on this idea - it's wrong. And I have to tell them EVERY DAY that colleges are a BUSINESS and just like your credit card, they are not in the market to give you anything for free, including scholarships.

Chose your college and major wisely...

[charmin]

My Strategy was: Community college + grow into adulting while working part time and living at home —-> transfer to a university when you know what to specialize in .

Get into the best college that I can afford.

[Adman-pj]

I want to own my house because my hobby is home improvement. It's my passion and what I love to do in my spare time. And I can only really do that if I own my home. Owning my home and improving it IS MY rich life.

[ThThinkr]

As George Carlin said, "It's the American Dream, because you have to be asleep to believe it."

[kelvinkao]

Oh Ramit. Those words that you called random aren't actually random at all! Hansel and Gretel are people who almost died because of their dream house, and Rapunzel is someone that's stuck in their housing situation. All very relevant to this topic.

[tjt]

One of the few non-doomers on YouTube and yet, top comments are nothing but doomerism. People need to listen better.

[icnclat]

This is probably one of my favorite videos of yours. It's direct, informative, and succinct. Thank you.

[chinchillin]

Sorry guys one more point to add: I think high schools should start teaching kids about financial literacy and basic skills then kids and parents would have better wisdom regarding college. Have personal finance as part of the curriculum.

[ebiigweze]

I think saying American's aren't living paycheck to paycheck, is a privileged point of view. I might agree with you in the literal sense that maybe their entire money isn't gone once bills are paid. but what's left after the bills is barely enough to survive through the month. It will be difficult to convince the people who are experiencing this that it isn't happening to them.

[CyrinaSwanston]

This video was so helpful!! No matter how many times I hear it, it's nice to be reminded that some things aren't my fault, and that I can do my part to set my future up. Thanks for breaking down the account structures again - I feel like this was the most specific you've gotten and it was really useful!

[electricpenguin]

I’m so glad I bought a house but it definitely depends on circumstances. My payment is way lower than renting in my area.

[fuupuppy]

I’m glad you mentioned the outdated zoning laws that are suppressing housing supply. Other major cities in the world are more efficient in using their urban space for all types of housing.

[Jungles_of_Lustria]

My parents were travelling teachers. We moved every 1-3 years or more. I learned how to make friends quickly and become a better rounded person. I have made serious mistakes in my life but am picking myself up off the ground, willing to learn and grow. My Rich Life is having a small piece of deep woods land with a tiny summer home that I can go to and be undisturbed by anyone. Otherwise, being able to go out and have a dinner once in a while, see a concert, and drive a classic car in the summer. I have no savings right now, 108K in debt, but I'm only 37 and I am fully employed with no kids. Thats a huge plus. Day by day my debt shrinks, my chance to invest grows, and even though life is tough now, it will get better, because I choose to learn and sacrifice to make it better. I love your energy Ramit. I'm late to the game, dont want fame, and a cup of tea on a porch watching the stars at night is enough for me. Keep doing what you are doing for us for free here Ramit. I'm learning.

[Doc-fwg]

I think choosing the right major is much more complicated than ever before. Not everyone needs to be an engineer, or a doctor etc. we gotta start paying and treating all careers better across the board because not everyone can do and be in these careers.

[ryans]

Sorry but hard disagree, we should definitely not just accept that the cost of college education has gotten completely out of control.

[ernestosanchez]

I really enjoy the comedy you input in your videos😂

[EvergreenVB]

I have a property zoned for a triplex but the city won't allow me to develop it, they made an excuse about the neighborhood's green house emissions, and population density. I offered the units for low income housing and that really slammed the door shut.

[kennethroyer]

The zoning question for real estate development I completely agree. Just here in North GA in my local area a builder want to construct a 50 unit apartment complex. The locals went nuts and attempted to paint the builder as low cost housing (even a few hot heads stated slum lord). Get this the apartment size in the proposed complex started at 1, 500 square foot and with some units as large as 2, 500 square foot. Hardly entry level the developer wanted to go after middle middle class to entry upper middle class Generation X and Boomer's who tired of home ownership.
Did the project get built?? HELL NO!

[loopyguy]

I love your system. Your book is my 1 of 2 personal finance recommendations for anyone who asks or family. A money system is so important and i think almost never gets talked about as detailed as this ❤❤❤

[antoniobrown]

American are trained to become consumers. This consumption leaves them with minimal wealth. Does this apply to everyone? Absolutely not. I know when i go through my friends finances to help I cut 100s from the money spent and convert to investments.