How To Build Wealth On A High Income

Timecodes:

0:00 - Intro
0:19 - You Are Fortunate
1:14 - High Income Does Not Automatically Lead To Wealth
2:33 - FREE 1-Page PDF
2:56 - Pay Off Student Loans ASAP
4:36 - Be Wary Of “Financial Professionals”
5:36 - Try SoFi
6:11 - Invest In Boring
7:30 - Invest Until It Hurts
8:45 - Ignore Social Expectations
10:01 - Drive A Boring Car
10:53 - Buy Just Enough House
12:06 - Inexpensive Hobby
12:59 - Be Uncomfortable With Debt
13:46 - Don’t Burn Out

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[TheJackCain-]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[JackieDaytona]

Every time Tae disposes knowledge his hair gets taller.

[paddyd]

I was choosing between financing a bmw or paying full for a Mazda. 2 years later I was laid off and I really appreciated that I chose Mazda

[simonworsley]

I would caveat this advice with enjoying life a little. If you’ve got a high income, no point squirrelling it all away for when you’re too old to enjoy it and spend it. Have a nice car, go on nice holidays and don’t be boring. Don’t invest for the sake of investing, invest enough to give you a comfortable retirement as you won’t need as much as you think you will

[yu.niverse]

a car is possibly the second-most expensive purchase you’ll make after a house and its so easy to be upsold. as someone who actually really likes cars I’ve decided that premium is worth it for something i sit in every day, but i also totally understand the point of view of those that purchase a car like they’re choosing a refigerator. an expensive, necessary appliance that gets the job done and won’t put you into debt is the normal way to view a car.

someone who truly appreciates expensive cars would never shame you for driving a beater, because they would feel comfortable in their own car-buying decisions.

[TheCnattu]

Loved your video Tae. What a pragmatic approach and to some degree very useful life advice! Enjoyed watching it.

[wanger]

I worked in tech for 16 years (with the last 7 being what I would consider high income). I kept my car from high school, saved the majority of our income, invested mostly in ETFs and company stock. I was able to retire early! I do remember folks saying a group manager should drive a better car, but now some of them ask how I retired before 40 🙂👍

[georgerivello]

Invest until it hurts! This is really good advice. Thank you Tae! Great video and channel.

[AbhijitRoy]

Probably the most practical financial advice I heard in a while

[cmgoodso]

This is really great; I really appreciate your wisdom. I have an addition along the same lines as your last point - prioritize your relationships and avoid divorce. Divorce is so expensive!!!!

[waynehosang]

Your are man after my own heart! Happy to say that I batted a 1000 on all your pts. One additonal level could include tax management/efficiency, especially in high state tax locations.

[ryanchaba]

Feels like this is good advice for everyone, not just high income earners. Well done

[RockyMountainGardener]

Great advice! I started earning 70k when I graduated and now earn a lot more. I did all of these things and now my partner and i have a networth over a million in our thirties.

[johnchang]

Not sure I agree w everything you said bc it seems some advice may save money but traps you to live less enjoyable life. But overall I get it, depends on age. The older you are, the more you need to spend as life’s short

[kw]

Thankful for your content regarding high income earners. Very meaningful 🎉

[Ivan-txji]

Dont get too comfortable with debt. Love it. And dont burn out. Balance love it so much.

[gnagyusa]

Excellent last point. I was making almost $600k a year in my previous job, but it was so stressful that I was nearly having panic attacks and barely slept. I'm my own boss now. I make a lot less, but I have time to enjoy life, work on my own projects that I love, and get great sleep. Oh, and above about $250k/year, the government takes most of your income (especially in a high income tax state like California), so it's not worth the extra stress. The only way it makes sense to go above that is with tax-free and tax-deferred income like investments, but not wit a regular salary.

[tamanousJP]

Main thing is to set some percentages of savings and stick with it. No point in getting a raise if 100% just sits in the bank or some stock. The goal of investing is to raise your quality of life and security over your life, not just have the numbers in some account go up.

[frankalexander]

I have a high income (2023 gross income was over $700, 000.00). I have absolutely NO debt not even a mortgage. My biggest expense is TAXES!!! My net worth is well into 8 figures (index funds). My education (all paid for) is BA, MD, MS, MPA.

[kuba]

Ohh man so well said . Don’t get greedy and eat with a a small spoon. Invest daily and often . Believe in compounding interest ! Also take vacation and don’t compete financially. Invest in health and you will be golden .