So lately I have been obsessed about personal finance and investing and a few days ago I had the incredible chance to sit down and speak to one of my favorite idols in the whole investing and Finance community, and he helped me formulate a plan about how to Make a million dollars, because that is the end goal right like who wouldn't want a million dollars right now. Wouldn'T you want a million dollars right now? Yeah me neither now in all seriousness, of course, we'd all love a million dollars. So I recorded that conversation and I want you to take a listen to the man himself as I sit down and speak with Dave Ramsey and you make more than your parents made yeah, I'm doing that right now. It'S me, you make more than a lot of your friends make and you make more than any other country in the world virtually a special income, especially coming from Russia and you're freaking broke, and so, let's, just let's just establish here, that you can find $ 100 Latte breath hey no one's fault, but yours, I don't think that's fair! I'M trying my best and it's your fault in this country.
If you retire broke, I mean, and you have nothing to show for it. I have some subscribers anything thanks, Dave, hi, My name is Andre chick and that video with Dave Ramsey may or may not be real. Well, it is real and it might have been just edited slightly now. What does it mean to become a millionaire, because it means different things for different people when I say become a millionaire, I don't mean literally, have a million dollars in the bank. What I mean is looking at your entire net worth. That means your savings, your investments, your cash, your bonds, your real estate, if you own any and speaking of cash, what does a million dollars even look like? What does it feel like How heavy is it? What does it taste Like? Don'T worry, I got you because I went online and I bought myself 1 million dollars, which is pretty ridiculous.
I spent $ 300 to get this shipped to my house, so please press f to pay respects for a video which might completely flop and not get any views, and now that I have this million dollars, I want to see for myself. What does it even look? Like, let's visualize it together, if you've never seen what a million dollars looks like. Finally, let's take a look, oh and if the IRS is watching this, then that expense was just something I'm gon na write off because YouTube's my business and I can write it off right. That is 1 million dollars. This is a hundred thousand dollars, . Could be like that wow, that's a really heavy bag, it's hard being a millionaire. Sometimes I'm just kidding I did lie, though I have seen a million dollars just once before in my lifetime. It'S when I shot a cardistry commercial for a very famous music video director who lives in Los Angeles him, and I eventually became friends, and he took me to a house party in the Hollywood Hills and when I stepped inside the house, I saw two guys playing A casual game of poker right at home and on their coffee table.
I saw exactly this stack of $ 1,000,000 and I thought to myself. This is crazy. I was 23 years old at the time. I will never forget this moment because it had such an impact on me. I thought you and I spend our entire lifetime chasing this right here. What is right in front of me - and here we have two guys playing a casual game of poker playing with someone else's entire lifetime. In fact, if you have your bachelor's degree, you will have earned roughly one point: eight million dollars in your entire lifetime, assuming that you work for 40 years at an average income of $ 45,000 per year. Now, after paying taxes on that money to a tune of roughly 360,000 dollars, you'll be left with roughly 1.5 million dollars.
Now, this isn't quite 1.5 million - it's only 1 million. But it's enough to illustrate the point of how little it all is. When you look at it visually and just how meaningless and yet powerful it all is and how much of an influence it has over our lives and the decisions that we make. That'S insane right, well Dave, Ramsey's, video about how to become a millionaire is one of his most famous and popular ones here on YouTube with several million views, and I want to summarize it for you, because when I was watching it, I didn't like the way it Felt because it felt like I was getting yelled at by mom and dad. So here it is here's how to become a millionaire. All you have to do is take $ 100 and invest it every single month into a tax Vantage to count like a Roth IRA or a traditional IRA, both of which I made videos about before. And if you can do that by investing it into a stock.
That'S giving you a rate of return of 12 % on average, which Dave Ramsey says he has found, and if you can do that for 40 years, you will retire as a millionaire if you can invest just $ 100 every month for 40 straight years. I'D said, 12 % return rates sounds so easy right like sign me up. Scotty I'll, save you the trouble from commenting like that's a mythical Pokemon stock, it does not exist, cannot compute. I see you smiling. I see that smirk, because that was me when I was watching that too
I thought there's no way a 12 % stock and you'd be right, because that's a highly debated and contest the point in the finance community. Whether or not such a stock even exists or will continue to exist because keep in mind the average historical rate of return. In the stock market has been about 10 % per year or 6 to 8 % per year on average after inflation. That'S the real return and John Bogle, the legendary index fund investor, the guy who created index funds, the guy who created Vanguard, made a compelling argument. Why the next 10 years of our life will only return 4 % per year and that's a far cry from 12 % so which stock was Dave Ramsey talking about in that video, while it's not specifically confirmed which one it is. I did some digging and I did some research and while my research found was people who did the actual real research who are paid, professionals - and not People like me here on YouTube, who do this for fun, and the stock in question is most likely. The American funds investment company of America and since it was created in 1934, it has averaged a rate of return of roughly 12 % per year, so a stock Like this actually does exist. There'S another one: the pioneer fund, ticker, symbol, P, I Oh DX and since its creation in 1928, it has averaged a rate of return of eleven point.
Eight eight percent, so basically twelve percent, so Dave Ramsey, was absolutely correct. If you can invest one hundred dollars every single month for 40 years into said mutual funds, you will retire as a millionaire by the age of 60. If you start at age, 20 or retired, millionaire by age 40, If you start at age 0, so as Dave Ramsey would say, stop being lazy and get on the ball 1 year olds and by the way, if you're, a Robin Hood user, like myself, a really Good alternative is vo. Oh, if you look that up you'll see it's vanguards, exchange-traded fund, it's also large cap and it's very similar to AI vsx, except it has a much smaller expense ratio at only point. Zero. Three percent in comparison to the huge, no huge point, five percent, which is a really big difference, and they even compared them on one three, five and ten-year benchmarks and vo has beat AI vs X in all of them. Now I'm not saying you should buy vo o over AI vs X, but I'm just saying it's a good alternative to consider because remember
None of this is financial advice, because I'm still not a licensed professional. Now. Here'S where my approach to investing differs a lot from Dave Ramsey's, I'm not saying my investing approach is better than his not saying you should do this, it's just what I pick to do so. Instead of working 40 years of my life saving my money and investing it to retire as a millionaire in my 60s, instead, I've chosen to walk away from my job a lot earlier, not as a millionaire far from it, but as somebody with enough passive income to Walk away from creating value for someone else and as somebody who has barely enough money to pay for his expenses while he sleeps without needing a job to hopefully take a risk, take a gamble on a business venture like this thing for YouTube. For example,
And if that works - and I can increase my income by focusing on the bigger picture and the bigger winds that way, I can use the excess income that I earn to invest that into the market and get there a lot quicker. It'S definitely more risky, but it frees me up to become a millionaire or generate enough passive income to retire, because remember, a retirement means nothing more than having enough passive income to cover your monthly liabilities, at which point you're, retired
You can make enough money While you sleep to cover all of your monthly bills, and that's it at that point. Who cares about being a millionaire? That'S just a status symbol that you don't really need anymore. Now, there's lots of different ways of achieving this sort of passive income and one of the most popular ways is through real estate, which I personally don't do. But two of some of my favorite real estate, investors and youtubers do meet Kevin and, Graham Stefan so go check out their channel. But personally, I prefer something called dividend: growth, investing, which is where I invest in blue chip stocks, which are companies that make so much money that they just pay investors as thanks for being investors - and I love that feeling, because I can get paid doing nothing.
No matter where I am in the world, I could be on a beach sleeping and I could be doing cardistry and showing off does not matter, I'm still collecting checks. In fact, I have about two hundred thousand dollars invested with Robin Hood, paying me roughly seven thousand dollars per year and between that dividend, income which is growing every single year between an active side hustle from time to time. Maybe once every three months and between a little bit of royalties here and there - I've totaled around fifteen thousand dollars that I can make every year, just by sleeping, pretty much and doing nothing which I know isn't much.
But it's enough to have quit my job and try to build this business here on YouTube and I say business in quotes because I'm totally not a business, I'm just one dude who films all of his videos. I edit all my videos. I answer all the comments. All the research, all the writing for my videos and if I had any business acumen whatsoever, I would try to hire and get help. But I just don't do that because I'm naive also when I watch other youtubers hire out. I feel like they're, not as relatable, because I can tell they didn't put the effort in themselves. They just kind of hired out someone else to do it. It doesn't feel as personal. Maybe that's just me and the way that I like to look at it is that 15,000 in passive income, when reinvested into YouTube. In my first year of doing YouTube, I made over 200 thousand dollars on YouTube, which is insane compared to my job, where I was earning only 50k per year and the way that I look at that is well
Maybe if I can keep this up for a few years, instead of 40 years to get to a million dollars, maybe I can do it in just one year, because YouTube income doesn't make any sense because it doesn't scale proportionally it's like exponential and it's insane, and So maybe I can do it in one year, but specifically here's the strategy how I'm gon na get there. Let me show you where I'm at right now, but also keep in mind: I'm not there yet, and I'm also not starting quite from zero.
But I did not have any help from my parents whatsoever either financially or as far as helping me get a job, not at all other than helping support and raise me in a caring, loving family, and I love that and not everybody has access to that. Not everybody grew up with that and I realize that's a big advantage and I do not take that for granted and the only way that I got my job where I was able to save money to begin with. It'S because I was obsessed with filming and editing videos and all the money I made there I just saved and invested. So that's how we got here today and also, I feel, really white right now. So let me change the white balance on the nano lights to be something of more of a skin color, because I look like a vampire. So there we go. I look a little warmer now right, a little more pleasant, easier to watch. I don't know, helps me. Watch myself later and not cringe, nope still really pale cringe and here's the part of the video where I'm sure everybody is waiting for, and that is my net worth, which is a weird word, because if I have $ 0 does that mean I'm just worthless? I don't think so, but I do feel weird sharing this
I feel like I feel, like a schmuck, I don't know, I feel strange, sharing this because I'm showing it off, but I promise that's, not the intention. I just want to show you my progress and my plan with my money and having said that, I would rather stand in the middle of a crowd of room. Butt-Naked then share this information, but we're gon na. Do it because, well you have see my bottom half so, let's open up the mint app and see as far as cash goes. I have one hundred seventy eight thousand seven hundred seventy five dollars, and that looks exactly like this one hundred eighty grand right here and when you say it out loud
That sounds like a lot of money, But when you see it physically in front of you you're like now that's cute, I can go to the store right now and buy myself a Ferrari, and I'm done of course used for our eating. But here it is a hundred eighty thousand dollars. That is a lot of money to have in your checking account. In fact, I should not be keeping this much. I should have it saved and invest it in a high-yield savings account that is gon na generate me. Some interest, but I have to pay a lot of money in taxes for this, and I also have a really big video planned somewhere in the middle of this Year. That'S gon na eat up most of the cash that I have it'll make sense later on. But that's the cash that I have right now.
As far as my investments go as far as Robin Hood and Emelin finance, I have two hundred ten thousand dollars sitting in those accounts. That looks exactly like this. This is two hundred grand right here. In my hand, two hundred thousand dollars really hard to hold. For my small hands, so I'm gon na keep it right here. That is two hundred and ten thousand dollars right there and the last brokerage I have is weeble, which is 13 thousand four hundred forty-seven dollars, and that's the closest I could get to having 13 thousand and Pat is sitting right here, and the last thing I have Is my cryptocurrency Holdings, which I won't show you unless you want to know, make a separate video, thirty thousand dollars right here in my cryptocurrency holdings, which fun fact used to be worth a lot more than this? But I'm a schmuck
Then I never sold it to get my profit. So now it's only worth this many monies, thirty thousand dollars altogether. All of this money is four hundred thirty thousand dollars, which is a ton of money that I never in. My wildest dreams thought I would have by this age, but here it is, and even though it's a lot of money, it's still very far away from one million dollars now before you're like man. Just remember that I have zero dollars in debt. I don't have a house, I don't have a car, I'm not married and I don't have kids ha ha. That is one he has so much money said the Boomer just kidding, but I promise there will be at least one person in the comment section who mentions exactly that but remember I started YouTube in January of 2019 and today I made a goal publicly for myself To become a millionaire by the end of 2021, that means I'm that worth of 1 million dollars, I'm gon na try to skip the 40-year work and invest that Dave.
Ramsey recommends and just go straight for gold, and can I do it honestly, probably not, but it's gon na be a lot of fun to make fun of me, as I try really hard to attempt to get there and, most importantly, I wanted to make this video To remind you that, even if you're not doing well in life business, career or money that it doesn't have to be about working for 40 years, so you can retire as a millionaire that there's lots of different ways to find fulfillment and happiness. And maybe it could mean doing what I did leaving your job to do what you actually love and maybe making some money with that hobby or with that business and trying to make something of it, because even if you don't and you earn zero dollars, that's okay! Because you will feel like you, never worked a day in your life and that's how I feel about YouTube, except not really, because it's actually a lot of work way more work than what people think it is it's insane and I don't wish it upon my worst Enemies, except if they really enjoyed it,
If you want to get serious about personal finance, about money and investing, it then download Robin Hood. Get your free stock download, weeble fund your account at least a hundred dollars, get two free stocks, one of which can be worth up to fourteen hundred dollars and between February and March, if you deposit, two thousand dollars you'll, get up to five free stocks, each of Which can be worth up to one thousand dollars, which is awesome? Love you all.