Money Expert Reacts to Finance TikToks

I’m the host of Netflix’s “How To Get Rich” and in this video, I’ll react to some financial TikToks. Let’s see if they’re good, misleading, or just plain bad.

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[dietzyfly]

57 years old....never bought a house. Invested relentlessly and now semi-retired....working for fun :)

[antillie]

I like how you understand what generational wealth really is. Its not passing down a house, or passing down anything. Generational wealth is not inherited. Its having your parents pay for your college so you never take out student loans. Its having your Roth IRA fully funded each year for you once you start working. Its having a custodial account opened when you are 2 and then using that money to put 35% down on a house when you are 26. Its being taught from a young age what interest is and that outside of a mortgage, debt is to be avoided when possible. Its being given a bunch of EE bonds when you are a kid so that when it comes time to buy your first car you can buy a new one with cash that lasts long enough that the next one can be bought with cash too. Its being taught to only buy reliable cars (Honda/Toyota/etc...) and to always keep them for at least ten years. Its just as much about mindset and education as it is about actual money.

Generational wealth happens long before the parents pass. If you want to make your kid rich you need to do things early in their life. 50k won't make much difference when they are 55+, but at 18 it can be game changing. By the time someone who has benefited from true generational wealth inherits their parent's assets, they are already wealthy.

[suecummings]

I started 4 years ago in a Roth IRA and I was 56 . Never too old to start!

[melaniegenuinely]

Sir, I had to pause your video to leave this comment. As a person who was never taught financial literacy, I have to find the education on my own and with having 2 girls of my own, I am in a mission to not fail them in this area. What you said about generational wealth and it being in the form of your parents actually teaching you how to grow your money rather than just leaving you a house blessed my soul. Thank you so much!!!!

[zoeblush]

I've been watching your channel for a few months now and my partner has also (surprisingly, she doesn't usually like talking about money) become interested in your content. I am generally the 'manager' of the money, we've only been together just under two years and yesterday she asked me on a 'finance date' (her words!) where we spoke openly about income, outgoings, debt pay off plans, future savings and investments where we shared absolutely all the details with each other. I am beyond thankful for all of your advice - I'm so excited for our finance future!

[BigEMU]

It's the "what-the-hell" effect that leads to progressively indulgent behavior. If people can't have the wealth immediately, or the wealth isn't life-changing, they'd rather YOLO it down the drain instead of finding some type of balance. Not to mention that a lot of people are generally bad at setting and sticking to long-term goals.

[ChristopherSwanson]

I never got the “The millions is going to be worth less in the future” comments. What is your alternative, don’t save so your couple thousand is going be worth absolutely nothing? It’s just another excuse to not put in any effort. Great video.

[codyjohnson]

32 with $250k in retirement. Plan on retiring at 55 and this will be $1.7 million just from the compound interest alone. Compound interest folks!!!

[flim-flammington]

I'm NOT saying there aren't people who are sacrificing and living paycheck to paycheck without wasting money.
I AM saying that there's a lot of people with terrible spending habits who act like they are those people.

[jenlollygag]

I love that he called it a skeleton icon and not a skeleton emoji 😂😂😂😂

[devorahanatolia]

Boomer here, and I'll be the first to tell younger people that the average wage earner can't afford to buy a home in many parts of the US. I bought my first home at 41, and thought it would be a starter home and I would eventually move up. 30 yrs. later, I'm in the same home, and the only way I could afford to buy another home would be to move 50-100 miles outside the city. However, don't lose hope. I've been thru several real estate booms and busts in my lifetime. If owning a home is important to you, keep saving towards that goal in the hope you may be able to catch something on a downswing.

[Gus_Souza]

Ramit, I read your book and followed your tips for just over 6 months now… MAAAANN, change my financial life 180 degrees. For the first time in my life I can tell you that my Financial is working by itself in my favor. I own only a small loan on my car, I have saved over 20K, my partner and myself have had probably one of the best holiday ever, paying interests no more and actually now I’m earning interests on better banks and investments choices and using all the benefits of my credit card… got promoted and got a pay rise.
I can’t tell you how thankful I am, you are a legend mate!! The only regret is WHY I haven’t seek to get Financial LITERACY 10 years ago, I am 43yo now…

[cmerr]

You caught him slipping, but Humphrey is generally quite good.

Also for context, he lives in the Bay Area - a place you need to be either filthy rich to put down 20% or comfortable with putting down less. Also it's a place with a totally absurd economy - a skilled technologist will have a job and strong income progression.

[pinktfatrabbit]

I showed my nephew using a compound interest calculator that if he invested the money he spent on smoking, he would be a millionaire by the time he was 60. He's seriously quit!

[peterzeller]

My wife and I were saving for a 20% downpayment and then covid happened. Rates hit rock bottom and we knew we had to buy while rates were good. We put down 7% and locked in a 30 year fixed rate mortgage at 2.6% which would be unimagineable now. Low downpayments can be good if you take the market interest rate into account. We still pay PMI but it is so much less than the additional amount that a higher interest rate would've gotten us if we had waited until we had 20%.

[roburb]

It's odd, Humphrey normally provides solid advice. He's also a prior CFP, but this one is perplexing! 🤣

[michaelswami]

Humphrey Yang is generally straightforward and honest.

[lilyhong]

I really like these reaction videos, especially the part Ramit disagrees with the others. I subscribe to Humphrey Yang's channel, too, I usually enjoy his research and references to all the data. Listening to intelligent people disagree with each other is such a good learning opportunity. Thanks for the video!

[Mo_rena-chpu]

I love Ramit, do you think he realizes how funny he is 😂😂😅

[SydPeppa]

2:03 My fellow millennials, DO NOT PUT OFF INVESTING. DON'T! Even if you have a business/you're employed.