Upper middle class: you look like everyone else in a nice area, but you can afford it. You're frugal on most things, but live/splurge on the things that matter to you.
@ErinTalksMoney
11 ай бұрын
Very true!
@djm2189
10 ай бұрын
Im 29, earn $120k, no debt, $110k net worth so far, single and no kids. Unfortunately homes are out of reach here in SoCal so gotta wait. I grew up poor and first gen American. I watch my spending, own my car, and i put 13% of my income to 401k/roth. End of the month i still save a good bit. I budget but i also want to live for example just turned 29 and did an 8 day cancun vacation. I feel very middle class or even poor at times cuz i see so many spend like crazy😅 i know the truth though. Ill be looked at like I'm poor. I want more goals achieved but at the sane time i need to relax. I barely turned 29 and did all this already. More than many. Blessed for the career and life i now have.
@simonworsley8631
10 ай бұрын
@@djm2189what is your career to be earning $120k at 29? That’s very unusual, very few people in my sector of work would be able to earn that much by 30 (not impossible but very unusual).
@boomer1049
10 ай бұрын
@@djm2189The most important thing in life is to make the decision to make Jesus your Lord and Savior then and then only are you truly blessed! I believe in being financially set in life but that's not the most important thing. Money is perishable but heaven is forever!
@SheAndMe
10 ай бұрын
The millionaire next door #stealthwealth
@H2SO4H20
11 ай бұрын
Rather than be concerned with what economic class you are in or moving toward, I suggest that people focus on creating happy active lives, finding careers they enjoy, staying out of debt and living substantially below their means in order to achieve financial independence. There are no secrets.
@JBoy340a
11 ай бұрын
Agree 100%. Money does not equal happiness.
@dstevens518
11 ай бұрын
I'd agree 99%. The one percent admits having more money means having more security and options, so while it might bring only marginally more happiness to someone already happy, that's still real.
@mysticaltyger2009
10 ай бұрын
Well said!
@ehoops31
7 ай бұрын
I think this is one of the signs. I agree, but I also think it's good to acknowledge that not everyone can have an enjoyable career.
@gijns
Ай бұрын
This. Otherwise society will forever be stuck in this trap
@Draggonny
11 ай бұрын
I love the fact that my husband and I are hitting most of the benchmarks for upper class but our combined income is well below 6 figures. We just live well within our means. The average house price in England is £300,000. Our house cost us £80,000 and our combined gross salaries are around £60,000. Our mortgage is tiny so our money goes a lot further.
@bobbys9853
10 ай бұрын
Upper class? Or upper middle class?
@vulpixelful
10 ай бұрын
The next generation in England has a lot stacked against them too, then. At least you have a better social safety net over there than we do...for now 😶
@Draggonny
10 ай бұрын
@vulpixelful Yep. Our current government is obsessed with the US and wants to emulate it in every way. Especially medical insurance. I have a lot of sympathy for younger generations. Rents are crazy high, wages are crazy low. The math doesn't math. It's very much becoming a dog eat dog fight to get by instead of a society of mutual benefit. We're becoming a very mean and selfish country.
@simonworsley8631
10 ай бұрын
You’ve not actually achieved anything. Like many of your generation, you’ve simply lived in a house for a long time, bought when property was cheap and watch prices goes up 3x in 2020 years. Anyone of your generation could have done that. Young adults in the U.K. now have no hope of doing the same, given where prices are at now.
@Draggonny
10 ай бұрын
@simonworsley8631 Prices haven't gone up 3× in my local area. They've gone up 20% in 10 years (we bought 7 years ago). Inflation was 10% this year. You can still get a 3 bedroom with a 10k deposit. We could have paid a lot more for a smaller, newer place. The trick is to buy somewhere you want to live, not somewhere you think you can make a profit on if/when you sell.
@jimv77
11 ай бұрын
The irony of being upper middle class *and* financially savvy is when 50+ percent of your total income goes towards 401k, 403b, 527, Roth IRA, HSA, FSA, 529….as well as totally debt free….you don’t feel rich with the paper numbers when you are barely paying the bills and only have $50k in cash at the bank.
@hanwagu9967
11 ай бұрын
exactly...but it is by choice. Many people don't have that choice.
@moeck14
11 ай бұрын
Not sure why you are saving 50% for the future. 25-30% is sufficient for most, so make sure you enjoy life as well with that extra 25% difference
@TheFirstRealChewy
11 ай бұрын
Plus the higher taxes, especially if you also have state taxes. On paper it looks like a lot more, but in practice it's not as big a jump as people realize. You have to make substantially more AND not increase your lifestyle, and usually take on more stress... and get less assistance.
@RichardTouchfaith
11 ай бұрын
@@moeck14 At 25% hope you enjoy your job enough to continue working til 65. FIRE Baby!
@brandon8531
11 ай бұрын
@@moeck14I save more in hopes of retiring early!
@nobeliefisok9174
7 ай бұрын
@Erin, You are not wrong. I fall into upper, and I spend frugally. Diligent savings is much more important than how high your income is.
@apnira10
9 ай бұрын
The simple rule is earn more from your assets than you do from your time. You have to build assets over time (save, not spend, manage & understand debt). It’s a life journey.
@Simon-je7ko
11 ай бұрын
I have been doing this since the end of 2014. It's not something that you can do overnight. It takes a lot of time. But if you really want to. You can apply and accelerate it as much as you want to. It's really up to you.
@boomer1049
10 ай бұрын
10 years ago we were broke in debt and renting! Today we own our own home and have 10's of thousands in savings and if I need something I just buy it and forget about it! Still nowhere close to my end game but thankful this Thanksgiving season to say God has truly blessed us!
@angelachapman4415
11 ай бұрын
Honestly everyone is talking about what upper class people do or don't do, and in reality classes are defined by your income, not how you spend. You can be in the upper middle class and actually not be doing well, because you're still spending your entire paycheck and not saving.
@TheBryanmauro
4 ай бұрын
I am of the lowest of the lower class: my wage is stagnant, my cardboard box leaks, my diseases are infectious, I used to be from the upper class. Once I married my rich wife my class increased and became a normal part of the human race again.
@JBoy340a
11 ай бұрын
I love the section about being dilegent with your money. Most people I know that have well over a million liquid got that way by controlling their spending, as much has having high earnings.
@oherroprease207
11 ай бұрын
Im too poor to even watch this video lmao
@anthonyc8499
11 ай бұрын
TRICARE levels of healthcare for Americans would be a game changer.
@jerseyshoredroneservices225
11 ай бұрын
If you're preoccupied with how to determine when you moved beyond middle class, you have much bigger issues than financial issues.
@HinesBrad
6 ай бұрын
I think the biggest deteminer of wealth is if you have to work or others work for you.
@kevo212
9 ай бұрын
Look for quality and value, not brand names. the goal is financial independence. I mentally behave like I’m in the middle class but being in the upper class, you have better habits and a plan. I’m looking at my finances multiple times a day. the question each month is how much more I can save to retire early. Having a good income and no debt is a great position to be in.
@kckuc310
11 ай бұрын
Your right about millionaires spending habits and yes no debt at all.
@drunclecookie216
7 ай бұрын
according to that debt calculator I'm considered upper income bracket for my area. that kind of caught me off guard because our household income is only $106k, but we do live in a very rural area, have no kids, and no debts with a paid off house. if we go by the 50:30:20 rule our necessities are only 35-40% of our income, if we keep our spending to 30% our saving is 30-35%. and we do try to keep 3 to 6 months emergency fund on hand. it's kind of fluctuating at 3 right now because last year we had a bunch of emergency home repairs pop up in a very short amount of time that wiped our funds out and they're just now starting to get back where they need to be.
@ninjafoxgamesgeekery
11 ай бұрын
I feel like millionaires spending less on restaurants could be a bit misleading when they may have a personal chef on staff at home that will make them gourmet meals equal or better to restaurants.
@rathelmmc3194
11 ай бұрын
There's a big difference between people who have 1 million and those that are worth 10 million. Its something like 10% of Americans have 1 million, but only 1% have 10 million. Anyone with just about 1 million probably has almost all of it in their house. They're not paying for private chefs.
@Zombiebeast1995
11 ай бұрын
@@rathelmmc3194 i agree, private chef is for $10 M+, unless you are 30 with $1M and still working with a great income lol
@eightsprites
11 ай бұрын
A millionair household is a family that owns there home and has the rest in investments. Say they own a $300k home, a $50k car, and have $650k invested. A total normal earning on thier investments would be $26k/year or $2166/month. No personal chef would work for $2166/m. Besides a normal family spends more than that each month anyhow. Its probably better for millionairs to eat out. I did some math: If you invest $290/m during your working life. You will retire with 1M invested. So its not impossible. If both works $145/m each is enough. You can however forget all about a private chef. did even more math: To reach 650k invested, $180/m is required, or $90/m each. Its doable.
@JakoWako
11 ай бұрын
They eat out enough for “business meals”
@antilogism
11 ай бұрын
@@eightsprites Good points. I would only include the present equity in the home and maybe not much of the car.
@BrianA-p8m
10 ай бұрын
It doesn't take into account those who are asset rich, but average income. Gold, silver, a rental (with low income...Good location), Roth IRAs, life insurance, paid for cars, long term care insurance, CDs, treasuries, and income generating stocks, all can come into play. Reduce your taxes, but keep your assets high!!!
@BrianA-p8m
10 ай бұрын
Was thinking of many farmers. They may have $500,000. to a 1,000,000. worth of equipment. They could have millions in land, the farm house paid for, cattle, sheep, cars, trucks, money in the bank. Their income is low...But they want it to be low. They don't pay many taxes. A good income year, they make major repairs or buy equipment or fertilizer...So their taxes are lower. When they sell out, you see their assets...But they are hidden for years!! They also work on passing down their assets (legally) to their kids. Income does not equal rich...
@josephkelleher8820
3 ай бұрын
I believe a high net worth is the main indicator for moving beyond the middle class.
@user-ib7it2li8f
10 ай бұрын
Thanks to the internet I could be sick in peace during this pregnancy 👌🏾 tips like emergency found good insurance etc saved me
@rippleforeskinxrp358
7 ай бұрын
The easy part is knowing the right thing to do....the HARD part is just doing it.
@danielhurst8863
2 ай бұрын
Unless they have inherited their wealth, or won the lottery, or gotten extremely lucky, wealthy people stick to a budget, and that is both how and why they are wealthy. Creating wealth means you need to have money make money, which means there must be money that you do not spend, but save. This requires a budget, even for people with a huge income.
@degenyogi6140
10 ай бұрын
Echo the having multiple streams of income vs. working multiple jobs. The caveat being that you have multiple passive streams of income. If you have a job and a couple side hustles, that is still working multiple jobs even though the side hustles may not have a boss. Also it depends on what debt is. Debt on mortgages for revenue generating real estate and low interest loans that are invested with much higher returns is beneficial. Debt on buying a business is also good as long as the business is covering the debt service, provides additional income for reinvestment, covers the salary of someone to run the business, AND pays you an income.
@anotheran
6 ай бұрын
When you’re super rich you have a lot of debt plus a lot of assets. When it’s cheaper to use others money then you borrow. Example: take a 4% car loan when your investments are pulling in 8% annually.
@jerometrembley1408
9 ай бұрын
Her list sounds like what the “entering middle class” list sounded like in 2010
@dougm3037
9 ай бұрын
Interesting take on personal perceptions of wealth Erin I'm a pesioner in Australia and going on your final qualifying list I've moved beyond middle class. I certainly wouldn't classify myself like that but I do have the advantage of not owing a car and have access to medicare hospital & medical free of charge. I'm 68 and thankfully don't have any major $$$ worries. I did an unconventional thing and upsized from an apartment to a house which has jumped in value by A$150K in a little over 2 years. The house is way too big for me but has been a wise investment compared to hanging onto my apartment. So glad I don't have to live paycheck to paycheck and am out of the rental rat race
@lewiskent5684
7 ай бұрын
No debt!?!? Why payoff a 30 year fixed mortgage at 3.5% when you can deduct the interest payment and get over 5% return guaranteed in a money market ETF.
@ashleygrandberry1186
11 ай бұрын
I'd argue that these measures are an ideal " middle class" lifestyle anyway. Having a comfortable lifestyle along with saving and investing is what previous generations of middle class workers were able to do.
@FreedomTalkMedia
10 ай бұрын
I have every one of those things except for the second income source. I live in a very inexpensive home though, and I would not consider myself upper middle class yet. Perhaps if I got some real estate investments and also purchased a better home for myself, then maybe.
@wanglee21
10 ай бұрын
The problem with the middle class in America is about living like the Jones. So many people buy homes out of the idea home and cars that are way out of budget. I'm a minority like Mark Wiens, be a multimillionaire but still drives a Toyota and a simple house but travels the world because he has "$0" expenses.
@imWillJ
11 ай бұрын
feel like the 89% that think they are middle class are actually "lower middle class" / "higher lower class". Nice content and soft voice.
@MeltingRubberZ28
11 ай бұрын
We call that the working poor
@sarah2576
10 ай бұрын
According to the Pew Research calculator we’re upper class. Definitely doesn’t feel like it. Feels impossible to buy a decent home, pay for kids etc smh
@bradleygraves5915
11 ай бұрын
I'm exceedingly upper middle. 2008 and 2016 vehicles that look and run great. No debt except the mortgage. Cruise 3x/yr and still manage to max retirement. I also believe a few of my neighbors are in a similar boat. No flashy cars or parties in my neighboorhood. Looking forward to paying off the mortgage 10 years early.
@puckhogjoe
9 ай бұрын
Goat comment
@MeReallyNot
11 ай бұрын
Your last point is spot on. When your investments make enough for you to live on then you're upper class.
@eile4219
11 ай бұрын
I think th article talked about what upper middle class are likely to do it. There are exceptions to the rule. You argued with exceptions.
@TheVosack
10 ай бұрын
I'm all of those except for the income level. I have zero debts but only make the low 6 figures. I don't consider myself beyond middle class.
@ineedabot8139
5 ай бұрын
I’m sure there is a large demographic of people whose parents have help fund the grandkids college and this helps the upper middle class
@phillipchristensen3202
11 ай бұрын
Net worth says more than what you have or don't have. Many people have upper class stuff and lifestyles along with no (or negative) net worth.
@christersmith5470
11 ай бұрын
There is a difference between wealth and income for where you sit. There are many people with a high income but are in the poor class due to debt. Then there are people with many assets, next-door millionaires, who have an average income.
@bradzeigler
11 ай бұрын
Something tells me the person who wrote that article hasn't moved beyond the middle class or talked to anyone who has. Becoming "rich" doesn't mean you suddenly ditch your values and go on spending sprees (lottery winners excepted). If you were frugal early on, you're still frugal after your income doubles, triples, or more.
@donaldlyons17
11 ай бұрын
What does frugal have to do with "class?"
@SteveG1337
11 ай бұрын
Exactly, money just enhances your qualities as a person. The good and the bad.
@kirklandphil
11 ай бұрын
Great video Erin. Thanks.
@ErinTalksMoney
11 ай бұрын
Thanks for watching Phil!
@kburkes4245
10 ай бұрын
I teach sociology, and using "middle class" to describe income is a misnomer. Middle class has many more characteristics than just income or wealth. It would be better to say middle income here instead of middle class.
@bradleyj7801
10 ай бұрын
I pick up dimes off the ground, pass on the pennies, and depends if its heads or tails on the nickels, what bracket does that put me in?
@FinancialFutureTips
11 ай бұрын
Great Video.
@cuzzourt35
11 ай бұрын
How about look like everyone ekse around me but feel broke all the time. Doesnt feel like middle class.
@charlottepeukert9095
11 ай бұрын
Sorry, but this isn't accurate.When the pay-cheque comes in, you( like everybody else) pay taxes. It's never yours and yours alone. You pay for social security and health- care. No, you can never just decide what to do, your obligations come first.
@lbstole
11 ай бұрын
The Pew calculator is based on 2018 data. Economic conditions have changed significantly since then, so it's really not an accurate indicator anymore.
@k.alvarado6237
10 ай бұрын
I’m upper middle class. Wow.
@hanwagu9967
11 ай бұрын
the pew research category for upper is way too broad. The spread for lower income is $48,500, middle $97k, but upper is unlimited. There is a heck of a lot of difference between household earning $145,500 to one that earns $1m to one that earns $5m, etc. Since the standard of living or disposable income really exponentially changes in the upper group, the category should be further divided. Upper10 ($145,500-$339,500), Upper5 ($339,500-$727,500), Upper1 ($727,500-$3,831,500), and Bonkers ($3,81,500+). The exponential change better reflected by considering that a little over 37% households (hh) or 49.3m hh earn $100k-$250k, 7.3% hh or 9.6m hh earn $250k+. A discrepancy in all this is the differential between net worth and income. You could be 10% net worth, but never be 1% income. You could also be 10% income but never come close to 1% net worth. Both distinctions really impact on if you really have moved beyond the middle class. The biggest problem with the Upper category in the Pew calculator is dizzying array of tax treatments and the fact it basically excludes many uber wealthy individuals/households. For example, those $1 salary billionaires, those who shelter compensation in LLCs, purpose trusts, B Corps, borrow and repay against assets, compensation via stock options, etc.
@stuartbagley2586
10 ай бұрын
Paying your bills as they come in rather than waiting for your paycheck is an early indicator.
@jamesdavis3757
6 ай бұрын
We can go further. Place these reoccurring bills towards a reward structured credit card and establish an auto payment to continually pay these off while reaping the rewards.
@Jamie-dz8dg
4 ай бұрын
@@jamesdavis3757 - no doubt. We have anything we can (no fee) routed thru our rewards card and it auto-pays on the due date.
@novadhd
11 ай бұрын
Moving to a lower COL area has made a huge difference in moving us out of the middle class to close to upper. Thanks!
@ralphholiman7401
10 ай бұрын
We live on the Mississippi Gulf Coast and are easily upper middle class here based on the really low cost of living. We would undoubtedly be lower middle class in the northeast, or California, or some other high cost state. But, we live like royalty here.
@Meadowlark57
11 ай бұрын
I used to tell my kids when they were little "You can act 'rich' or become 'rich' but you can't do both at the same time." We are upper middle class I'd say because we are out of debt and retired with pension now and social security on the horizon (besides some in our retirement account that is accessible to us).
@kyleolson9636
11 ай бұрын
Or just become a doctor / lawyer / engineer / sales rep. Make $300k+ per year and you can definelty feel rich and get rich at the same time. Saving 25% of a high income is much better than saving 50%+ of a low income.
@Kefroth1
11 ай бұрын
@kyleolson9636 This is a very simplistic view. First, 300k is generally the top end for doctors/engineers/lawyers. In order to command that dollar amount, you need to have the drive to maximize your income and excel at your job or have a knack for networking. Second, there are plenty of people who have large salaries but 0 financial literacy. The result is people with 6 figure incomes living from paycheck to paycheck. Finally, sales reps have the biggest variance in earning potential... they can exceed the others by a lot but the vast majority will not hit six figures, let alone 300k.
@hockey1freak
11 ай бұрын
@@kyleolson9636 doctors graduate with hundreds of thousands of debt, most of the doctors I work with don't "act or feel" rich, heck most don't have time. Also please research average pay for lawyer, engineer and sales rep the majority don't even get $100k. Your last statement is kinda true except when you factor in lifestyle creep. In reality if you make $300k a year in most places you can save 50% of THAT income.
@n-da-bunka2650
11 ай бұрын
@@kyleolson9636 The top earners are ENGINEERS, not doctors or lawyers as those two categories typically ran up HUGE debts borrowing for college whereas engineers likely went to less prestigious colleges and therefore had lower or no debt burden upon departure
@HoerigStrength
11 ай бұрын
@@kyleolson9636$300k is very low for a doctor, perhaps a D.O.salary. A friend worked in payroll for a hospital chain and surgeons were making $2 MM annually. This was in 2015 so probably well above that now. And this was in the Midwest so not a high cost area.
@mapmike52
11 ай бұрын
My wife and I are upper income group but you would have no idea by looking at us. We live a modest lifestyle in a modest home with 10 year old cars that never had payments. We are investing 25% of our income with the goal of 40% (childcare is expensive right now). We are technically coast fire at 33 & 31 years old with what we have in retirement investments, but we got to this point without any inheritance and a lot of sacrifice. It's been tempting to keep up with the Jone's but I think we've done a pretty good job of resisting.
@jjred233
11 ай бұрын
I would guess your family is in the top 10 percent for wealth at your age or maybe top 5 percent. 25% or 30% puts your family well ahead for the future. The goal of 40% is rather high. I would think that would be the goal at late 40s or 50s years old for late starters.
@ErinTalksMoney
11 ай бұрын
I honestly think that a lot of people who are in the upper income group, you would not guess it because they live a modest lifestyle still. I think those are the millionaire next-door type people. Congrats on all your success! I love the coast fire approach.
@JakoWako
11 ай бұрын
If you own a house in your early 30s then everyone your age and younger is going to assume you’re upper income.
@kyleolson9636
11 ай бұрын
@@ErinTalksMoneyThe average savings rate for the upper middle class is 5.3% according to the Richmond Fed, so I'd say being well off but living under your means is pretty rare. Certainly a great sign of financial maturity for the ones who are doing it though.
@Justagirl325
11 ай бұрын
That’s the hard part it’s the spending
@gordongekko2781
10 ай бұрын
Speaking as someone who started at the bottom and is now independently wealthy, I definitely endorse her list over the original list. She is describing personal finance standards that lead to wealth accumulation. The basic rules are: avoid consumer debt, live below your means, save, and invest for your future.
@AaronBluestone
11 ай бұрын
I’ve always like the saying if you don’t have to think about eating at any restaurant you’re middle class, if you don’t have to think about going on any vacation, you’re upper class
@doncorleone3901
11 ай бұрын
Helpful. The only thing i think of when planning vacations these days is "do i have the time". I never think of money. But i guess the time part is also a different kind of prison and i must break out of it to be truly free. But atleast the money part is taken care
@spinnetti
4 ай бұрын
For me it was fully paying off everything immediately, getting or doing what we want (but still being responsible) and never even wondering how much cash reserve we have in the bank.
@mocheen4837
3 ай бұрын
I worry about both eating out and traveling. I feel anxiety anytime I have so spend over $200.
@ForeverStapleton
9 ай бұрын
My wife and I make $275,000, max our 401k’s, HSA, and FSA accounts and drive 10 year old vehicles. Net worth is $1.2M and we have don’t have credit card or student loan debt. Mortgage rate is 3.25% and have 40% equity in our house. No useless luxury goods for us. Those are for fools. I love being a bad consumer.
@90volts
3 ай бұрын
What are you spending all the excess income on? My wife and i make 140K, she has very little going into 401k, I have 6%, no FSA or HSAs, brand new car for her and 9 year old car for me along with a classic car for play, and our networth is 1.6M. Maybe due to 100% equity in our house?
@rtbull11
2 ай бұрын
My new favorite term: bad consumer. 😂
@ForeverStapleton
2 ай бұрын
@@90volts we have two kids and are taxed to death.
@hagakuru
11 ай бұрын
I think the turning point for me was where I no longer waited to hear what the total was at the supermarket before I paid. Now, I slide my card in before the total appears, and I no longer shop products based solely on prices.. now I just pick up what I want without really even looking at the price.
@iveyhealth2266
11 ай бұрын
💯👍🏾
@glevii
11 ай бұрын
Add to this that I know I'm paying with cash (Or a cash-like payment method). I know I'm paying with cash, and loading up my cart with what I want and not stressing when I get to the checkout lane. I know both sides of that coin. I'm very glad to be where I am now.
@dstevens518
11 ай бұрын
Yup, ain't FI wonderful? Work hard to get there folks, the payoff in peace of mind is so worth it.
@thomask8298
10 ай бұрын
That's not middle class
@alexanderlefebvre9940
10 ай бұрын
@@thomask8298 That was their point.
@mikedr1549
11 ай бұрын
Thanks for making me feel better about myself today! But truth be told - I always feel like I'm teetering on the brink of financial disaster regardless of what the studies say.
@ShawnPatton-rm2hv
11 ай бұрын
Are you intentional with your money, especially if investing/saving 25% or as close to that as possible? When you get extra money, do you spend it or invest it?
@zulfakaraspar2311
11 ай бұрын
The statistics also mean there are many opportunities in front of you to improve your financial but you don't pay attention!
@USMC6976
11 ай бұрын
get rid of your debt.
@mocheen4837
3 ай бұрын
I always feel broke and worry about retirement on a daily basis. I still have 15 years until retirement but my net worth is heading towards $4 million. Most of my friends are way ahead of me at $10 million. The difference is that they came from money while I grew up in a single family home on welfare. I never want to go back to being poor again. The fear of this keeps me frugal.
@j.wilkerson1905
11 ай бұрын
If TSLA stock keeps dropping in value, I might become middle class soon 😁 That dog looks comfy...
@hanwagu9967
11 ай бұрын
only if you don't buy more🤑
@antilogism
11 ай бұрын
@@hanwagu9967 If it was a good deal at $250 it's even better now. Musk is a smart guy so when they start buying back cheap shares I probably will too.
@hanwagu9967
11 ай бұрын
@@antilogism i'm quite sure that's my point.
@mocheen4837
3 ай бұрын
I just added more shares today.
@spade2you
11 ай бұрын
I grew up middle class and made so many middle class mistakes. My biggest mistakes were getting married (and divorced), working way too hard for an employer who doesn't value that, and putting money into savings instead of investing. I now live in a lower middle class neighborhood (thanks the the divorce). I'm pretty sure a major contributor to their brokeness is overspending as there are new-ish cars on the driveway while their garages are full of junk that has little to no use or value.
@zulfakaraspar2311
11 ай бұрын
Since you are still alive, there are still times and opportunities to improve your wealth. Go get it if you want!
@johntorrington2672
11 ай бұрын
Hands down, divorce is the largest wealth destroyer for men in the United States. It will cripple even the most wealthy.
@mysticaltyger2009
10 ай бұрын
Overspending on cars sure doesn't help, but the financial issues faced by the lower middle class are more similar to yours: having kids outside of marriage & divorce.
@fighter2621
10 ай бұрын
You aren't about to judge someone's circumstance while living in the exact same situation right? Right??
@spade2you
10 ай бұрын
@@fighter2621 Divorce wasn't my choice. I should come back eventually.
@MrBenHaynes
10 ай бұрын
Thanks Erin. I check all the boxes except investing (I don't put my money to work, making money). My spare cash sits in the bank earning 5.1% interest p/a. Property is to risky and tenants have too much power. The stock market bores me (besides, my sizable superannuation sum is at the mercy of the stock market) Life is great, we've been blessed and my wife says our two college aged sons are our biggest investment!
@steveh5307
10 ай бұрын
5.1% in savings/CD is a recent phenomenon. You'll NEVER be wealthy saving. You must INVEST. People irrationally believe there is some giant stock market crash coming. If you arbitrarily PICK a certain time period to rationalize your belief, you WILL find a point in time where it did "crash". But if you look at the 5, 10, 15, 25, 40 year horizon, stock market returns FAR more than putting it in savings. There are TREMENDOUS opportunities right now, especially AI. AI WILL take over major aspects of life starting right now and will only accelerate EXPONENTIALLY in the next 5-10 years. If you think AI is some "fad" and not worth investing in, you're grossly mistaken. It'll be like people who saw no value in the internet in the 90s when it was emerging.
@Aussie.ln.a.T-shiRt
10 ай бұрын
My friends and I are pretty well-off, but we don’t consider ourselves rich…. except for one very wealthy guy. If you have $ 2 million, $ 3 million, or $ 5 million, you can live very nicely. But real wealth nowadays starts at $ 10 million, at least in some expensive areas. Professional jobs, steady saving, owning real estate, & stocks - that’s how we got where we are. The really wealthy guy sold his company and invested all the money in tech stocks in 2005.
@ChelseaMacc23
10 ай бұрын
I put in a small amount of money over a year ago and I’m barely breaking even. How do you do it? Any pointers?
@steveh5307
10 ай бұрын
@@ChelseaMacc23 "small amount of money" and "over a year ago" is your problem. You're not gonna see much with those two things. And if you're barely breaking even, you're investing in stale companies. To see anything substantial, you gotta have at least $30k invested. $30k portfolio goes up 10%, that's $3k and that's worth getting up for. Whereas $5k is $500, which is wtf ever. Every paycheck, auto-deposit at least $500 into your brokerage account and keep buying AI and tech, not AT&T and Walmart.
@Aussie.ln.a.T-shiRt
10 ай бұрын
@ChelseaMacc23. I would suggest you talk to a financial advisor about what a good safe withdrawal rate is, if you’re struggling!
@corralescruiser8957
11 ай бұрын
We retired early at 55. Our income is median household income. But net worth is top 5 percent. I know we are in upper middle class range but sure dont feel like it.
@whatwherethere
7 ай бұрын
99.9% of American Citizens has more in common with a homeless person on the street than a billionaire. You aren’t lower, middle, or upper. You are WORKING class and the bank owns the majority of “your” stuff.
@OroborusFMA
11 ай бұрын
When I go to a place like Burger King not only do I have a coupon I also have a credit card reward offer of 10% off a purchase from Burger King. Pretty much getting 50% or more off. I would never pay full price. If I don't have the coupon and credit card offer I don't bother. My net worth is more than a million.
@argentaegis
11 ай бұрын
A note on buying brand names: It's automation. I do not have time to investigate pie pans. The , previously reliable, people at America's Test Kitchen say William Sonoma make good ones. I get WS pie pans in spite of the cost. It may well be worth someone else's time to investigate pie pans. They might be an expert, enjoy kitchen shopping, need to be more frugal, or that might be their share of the home's division of labor. I just want good pie pans that work well and last forever. For staples...Equate, Great Value, Basics... For one time durable purchase that I'm not an expert on...trusted recommendation quality brand.
@janan3382
11 ай бұрын
I think co trolling your spending is the biggest key to making financial gains. We watch the people around us spend like crazy and barely make ends meet. We’re over here saving 35%+of our income and will have our mortgage paid off next month. We don’t worry about gas or grocery prices. We do buy almost everything on sale and stock up on what we know we’ll use. I’m actually taking a different job in my company that will be a pay cut but should be a much more pleasant situation for me. We aren’t ruled by our finances and it’s wonderful!
@cherylT321
10 ай бұрын
I work closely with four people who come in every single day with either Starbucks drinks or Dunkin Donut drinks. I look at them and wonder how much all of that will cost them for the year!
@refineme
11 ай бұрын
I totally agree on second or additional streams of income. Maybe not for everyone, but we own 1000 acres a state over out right, and we rent it to two farmers. It’s great and worry free being a landlord where the tenets do all the work, take care of your asset, and pay you $70k in rent each year. I just reinvest it and pay taxes. This way we can still focus on our careers and our family.
@ralphholiman7401
10 ай бұрын
One of the easiest ways to get ahead when you are young, is to take a second, or part time job and invest every penny from that job, even if you can't spare any money from your main job. I knew a girl who was an attorney for the U.S. Marshals service who used to also wait tables at night at a local sports pub. She said her Marshal salary was to pay her bills, but all the money she made waiting tables was her extra investment money.
@larrykramer2761
11 ай бұрын
OMG!!! I'm rich and I didn't even know it! Family of 5 in Los Angeles. Household income is about 300k. Certainly don't feel rich. It's very expensive here!
@mocheen4837
3 ай бұрын
Looking at people around me I would guess that most people must make over $500,000 per year. The nice cars driving around and the designer clothing. I am always in sweats and a t-shirt.
@bobjacobson858
10 ай бұрын
I'm retired, and my income isn't exceptional, but I've saved well over 15% and invested during my full-time working career, so my net worth is about greater than that of about 90% of the population. Most earnings from my portfolio are simply reinvested rather than being taken as income. I lived in an inexpensive apartment, bought used cars and drove them until they were 'old enough to vote', bought many clothes at Goodwill, and drank water in restaurants instead of either alcohol or sugary beverages. I've never been in debt. Now I either already own or can afford almost whatever I want, and life is good. I guess that means I've moved above middle class--but I don't really worry or care what my position would be called.
@FernandoValenzuela-k9n
5 ай бұрын
Bingo.......You had it figured out all along.
@TIB1973
11 ай бұрын
Something I have recently noticed was I don't pay attention to what anything at the grocery store costs or the cost of gas is now days. I just swipe my card in both locations and never think about it. I make pretty good money, but I think this is more about my budgetary decision than anything else. I didn't really notice the housing market crash of 2008 and covid was a vacation for me.
@johnurban7333
11 ай бұрын
If you did pay attention to those things you could double your money
@TIB1973
11 ай бұрын
@@johnurban7333 Double my money for what? I will retire before everyone else my age, I dont worry about money, I dont worry about market downturn, I love pretty much however I want. I don't need tondouble anything, my life is content. Oh and ai love my job, I come and go as I please , have unlimited time off and they pay me stoopid money.
@hanwagu9967
11 ай бұрын
I agree. I think people forget that the whole purpose to saving is to spend at some point. At a certain point, you "can" stop focusing so much on penny pinching, while still meeting your savings goals. I think that is when you actually start moving beyond "middle class." We still look for deals, and old habits like comparing prices don't go away, but if I want my Cheerio's instead of oat o's, I'm gonna buy my Cheerio's.
@cherylT321
10 ай бұрын
Ditto!
@hockeyhalod
11 ай бұрын
Dang I breached middle class to upper without realizing it... Time to accelerate it more!
@KidCity1985
Ай бұрын
What are you invested in?
@hockeyhalod
Ай бұрын
@@KidCity1985 90% various etfs and mutual funds. 10% single stocks for fun. Only mutual funds for my wife's retirement accounts.
@JBoy340a
11 ай бұрын
In general I tried to avoid Costco. Their price per unit (ounce, gallon, etc.) may be low, but will we really use those massive sizes like a quart or half gallon of olive oil before it goes stale? Also, are you sticking to the shopping list and only leaving with those items or buying others because it is cheap?
@hockey1freak
11 ай бұрын
Its true there are many costco items we don't buy. but we go every 2 weeks and use most of it up. Also costco quality tends to be better than the equivalent price per unit at other stores.
@lynnerobertson9847
10 ай бұрын
When I shop at Costco, it’s with a plan to use everything I buy. We cook 90% of our meals at home from scratch, so even though we’re only a family of three, we easily get through bulk fresh produce, meat, etc.
@KayKay0314
11 ай бұрын
I was upper-middle, but I went so far beyond that I've wrapped around to the other side. In 2024, if I don't go back to work, I will be "poor" by income standards, but certainly not by net worth. I'm probably not going to allow this to happen because I'd like to be able to have a job that can cover most of my expenses for the year as well as trying part-time work. Also, I don't want my personal tax deduction go to waste.
@USMC6976
11 ай бұрын
If you have that much net worth and you would continue to work - full/part-time ' so your "personal tax dedcution" doesn't go to waste, are you saying that your net worth is not generating any cash flow? Because if it is and that cash is greater then your personal tax deduction ... well, you know what i'm saying.
@es330td
10 ай бұрын
A friend of mine, who is a multimillionaire told me once before he made all of his money “a person can have money, or they can look like they have money, but a few people can do both.”
@als2cents679
7 ай бұрын
Why would anyone in the US pay down their mortgage to below $750K ? Here are the benefits of owning a home and not paying down the mortgage at all: 1) The rates can be low for e.g. 3% - 5% and can be refinanced to a lower amount when rates drop in the future. 2) 80% of your home investment is put in by the bank, but you own 100% of any appreciation in the property. No other deal like that is available for any other investment. Also, unlike any other loans, since the loan is secured by the property, any default is limited to just the property and the bank is not allowed to come after any other assets. 3) If you live on the coast, the mortgage payments will allow you to itemize and save on other stuff like charitable contributions etc. 4) You get a deduction for the mortgage interest on your taxes, both federal and state, which can easily be about 40%+ marginal rate combined. That itself means you multiply your interest rate by 0.6, bringing it down from the nominal 3% - 5% range to the 1.8% - 3% range. 5) Inflation runs at 3%+ or so on average over long periods of time, so if you take out an interest only loan like I have, then over the decades, your principal loan diminishes at that rate even if it remains nominally constant. At just 3% inflation, in 10 years it depreciates by about 35%, so a $100K loan today will feel like just $75K ten years down the line, without paying a dime against the Principal. 6) Meanwhile as you make your mortgage payments on time over the years, it turbo charges your Credit Score as well lowering your rates on other loans or money you want to borrow. 7) You don't have to pay any rent and can live in the home for free, since you "own" the home, even if it is just 20% of the money put down. No worry about rent increases or uncertainty about leases, etc. 8) When you sell the property, the federal government allows you to pay zero capital gains taxes on any of the gains up to $500K. No other asset enjoys such a generous exemption. 9) Your living house is a legally protected asset that is harder to get to in a lawsuit or bankruptcy. 10) When you die, your heirs get a full step up in basis and pay no taxes on any gains.
@anotherperspective6247
10 ай бұрын
When you have a fully funded emergency fund, maxed out retirement & HSA contributions & also need to have extra money taken out of your paycheck to cover taxes on your taxable brokerage activity is a pretty good sign.
@paulhanel332
10 ай бұрын
My parents always struggled. That means two things: 1. I learned I didn't want that for myself and 2. I got no inheritance. Basically I saved from every paycheck. My kids have no student debt and I have more income now than when I was was working full-time. Compound interest is a miracle. But it only works if you start early.
@Financialwiz4567
10 ай бұрын
I have heard that compound interest theory for many years, I really dont buy it. When you consider inflation, and the rule of 72, time requires money to double every 24 years in a 3% average inflationary period JUST TO STAY EVEN. The biggest single difference for our family was the ability to set aside far more discretionary income for investment once the kids were on their own. Investing capital at a substantial percentage of your income is to me the single biggest factor in growing assets.
@paulhanel332
10 ай бұрын
I'll correct myself. It's not a miracle and you don't have to buy it. It's just math. We never saved more than $1000 a month but I retired at 59 with almost $2m and my kids debt free. Doctors, lawyers? No we were both in public education. It took a lot of discipline that's all.
@69ztang
10 ай бұрын
I was hoping to retire at 57 but since I had kids in college I kept working. I thought I’d probably retire at FRA but once they all graduated and started working I realized I could probably retire at 65. Then at 61 I decided to retire at 62 since my portfolio grew more than I had planned (like you said compound interest) and my pension was also more than I planned. Once in retirement I decided to collect SS at 63 since my wife doesn’t qualify for spousal benefits and my health went downhill. I’m hoping I make to my 70s.😊
@mikewassef8172
11 ай бұрын
-Not being worried about keeping up with the Joneses and not flexing cause you have nothing to prove -Focusing on value in everything and not being fooled by name brands. -Having enough disposable income to pay all bills, investing for the long-term future, enjoying nice vacation (nothing extravagant). -Having good debt (like business loans or investing in a meaningful degree). That’s true wealth for me
@themanifestorsmind
9 ай бұрын
Yep. Because in this case, you ARE the Joneses.
@martinguldnerAutisticSwanGuru
11 ай бұрын
Being single my income of $43,000 a year makes me below middle class. My net worth is little over $400k; 325k from an inheritance in 2020. Makes me above the middle class.
@mysticaltyger2009
10 ай бұрын
Yeah, I'm sort of an oddball like that, too. Single, income this year will be less than 20k and will probably be about 26K next year. Net worth over 700k (not from inheritance). Living at home with family for a few more years until I can collect a pension and build up some more savings.
@werebreakingfree236
11 ай бұрын
to be honest we are doing better than we think. the only debt is our house which is on a 15 year mortgage and we are 2 years ahead of the payments. a fully funded ef of 6 months. we dont pay anything for health ins. its fully covered by the union. i recently found 3k in cash at my house which i had completely forgotten about. and i have about 6k in cigars in my cigar humidor. we are also putting 48k a year into retirement. and im 7 years away from a 30year pension in the teamsters. we have accomplished most of this in the last 7 years. we were asleep at the wheel until 44 years old. you just have to be willing to do the work
@dougandersen645
11 ай бұрын
My cousin is in a union and he gets his healthcare through the union. Free? Hardly, he says $21 out of each hours pay is deducted for health insurance. I wonder how much of that is skimmed off for the fat cats? Unions are not your friend. They’re about to take Ford and GM to the trash heap. Bailouts will follow.
@dstevens518
11 ай бұрын
While abuse at unions is always a danger, that doesn't mean unions aren't useful to help workers attain a fair deal from management.
@growsinhouseherbiculturali1100
11 ай бұрын
@@dougandersen645And here you are, broke and complaining. Unions saved the middle class. Red states have no middle class because of ‘right to work.’
@44andbroke24
11 ай бұрын
@dougandersen645 do you realize how much 21.00 for every hour worked would be. He's clearly mistaken or you are. Union employment has been very good to me for 23 years. I will be retired in 7 years and 3 months. At the age of 58 And be collecting 6200.00 a month pension. This year I will make 95k taxable income while working a 4 day work week. Seems good to me
@trashtrashisfree
11 ай бұрын
I definitely fall in the middle class income wise. But my house is paid off, I have no debt at all and get a lot of my food free. It's not what you make it's what you get to keep.
@Dave-sw2dm
11 ай бұрын
Free food?
@trashtrashisfree
11 ай бұрын
@@Dave-sw2dm Denver has a plethora of food banks. Also bring food to up to five other households on my block that are working poor. Produce, bread, things close to expiring will end up in the dumpster otherwise. Housing a 59 year old lady until she gets her social security.
@josephstevens9888
11 ай бұрын
I was raised by parents who grew up in the later Depression / WW2 era. They stressed the importance of saving money, not living beyond our means, and preparing for the future (including being prepared to meet emergencies) As I approach retirement, I'm able to check off in the affirmative the list you presented. I enjoy your content Erin.... I hope all is well. Take care!
@carlfromtheoc1788
11 ай бұрын
And repair (if possible) rather than replace.
@donaldlyons17
11 ай бұрын
Well but buying power matters too. 12$ an hour in 2009 buys in my area more than $17 an hour in 2023.... Also all that depends on outside factors too.... How much I make depends on market factors as well....
@Youtubeuser1aa
11 ай бұрын
If you’re saving you’re losing. Invest.
@steveh5307
10 ай бұрын
Of course you shouldn't be living beyond your means and should INVEST, not save. Saving doesn't lead you to wealth. It barely keeps up with inflation. You must INVEST. Also, you must attack the income side more so than the expense side. Getting promoted or switching companies and getting 15, 20, 25% jump in your salary is FAR more impactful than you cutting out $18/mo Netflix. Nickel and diming is playing with chump change. Gotta play with dollars, not cents.
@donaldlyons17
10 ай бұрын
@@steveh5307 Switch jobs is so complex the majority don't see to love it!!!!
@BDUBB24
10 ай бұрын
Sad as it may sound, in my early adult life I had no education outside of high school and struggled living paycheck to paycheck constantly, but that frugal mentality has actually helped me significantly after I went back to school and got a very good paying job. Now I save/invest 50% of my income and plan to retire early. I realized one day at the grocery store that I was well off when I bought some “fancy cheese” for a party and didn’t look at how much it cost. 😂
@MeltingRubberZ28
11 ай бұрын
PS VOO is on sale today for any who are interested
@hanwagu9967
11 ай бұрын
VOO is going to be on sale even more. Expect dow 30k and s&p500 below 4k again. 10yr went over 5% and the last time it did that it preceded the 2008 crash. we are in for rocky year or two, so there will be fire sales all around if people continue to buy rather than trying to time the market.
@MeltingRubberZ28
11 ай бұрын
@hanwagu9967 we'll see. I doubt we'll get that low.
@MeltingRubberZ28
11 ай бұрын
@@hanwagu9967 VOO back into the 390s
@MeltingRubberZ28
10 ай бұрын
@@hanwagu9967 VOO up $40/share since this comment
@patcurrie9888
9 ай бұрын
Limiting kids to 2, starting a 401K in your 20s and saving for a home. Why pay rent when you can pay yourself and write off some of the interest?
@48484848z
2 ай бұрын
I realized I was upper middle class, high income, own 3 condos , two paid off and 1 tenant in most exclusive area in Atlanta. Have a housekeeper 2 times a month, zero debt, travel on Qutar air, first. Class flights, five star hotels. Have a golf coach, spend time at the yoga studio 3 times a week. Also have a huge designer wardrobe, I spend $1000 a month on restaurants. Couldn’t be any happier.,,
@vinyl1Earthlink
11 ай бұрын
Having become quite well-off, it took me a about ten years not to worry about small purchases. I do buy brand-name products if they are actually superior, otherwise I don't. Yes, I've never had any significant debt - I did have a mortgage for a few years, but I decided it wasn't worth the tax deduction and paid it off.
@CourtneyRobinson
11 ай бұрын
Thank you for this. We are currently in the upper middle class financially, we are also extremely frugal and have a high savings rate while being debt-free. Everything that you said lined up. I didn’t quite agree with much of the article just as you pointed out.
@737Parkie
11 ай бұрын
I’m upper and get my clothes at Costco. 😂.
@ErinTalksMoney
11 ай бұрын
Hey, I love Costco
@737Parkie
11 ай бұрын
@@ErinTalksMoney I’m in my 50s, been married for over 31 years and don’t care what anyone thinks. 🤷🏻♂️
@ChadAV69
11 ай бұрын
Yeah, a 130k income is a very subtle sign. Not many people notice it.
@mocheen4837
3 ай бұрын
In San Francisco $300,000 is middle class.
@kennylaysh2776
10 ай бұрын
I always kept out of debt for the most part, even when I was poor. My debt when poor was a very low car loan, and state college (also low, around $10k, for 2 year degree). When I made more and bought a house when I broke $50k a year, my debt was only the car and a house mortgage. Now, my only debt is the mortgage (I stuck with the same house so far). When I noticed I was actually doing better for money and hitting upper-middle class, is when I saw that I could put 16% into my 401k, 15% into a stock purchase monthly, and have $40k in savings, and still be living without any concern over food/bills. I still live like I make around $50k a year, and I kept living the same way even when I hit $130k a year...I just put all the extra into investments/savings, and have kept my $1300 a month mortgage instead of going and grabbing a more expensive house. I couldn't care less about looking 'flashy' with money, my entire goal is very simple - eventually buy the house I REALLY want, and retire. That's it. Free time without needing a day job is worth more than anything else to me.
@princesskaitlinhazelwood4703
11 ай бұрын
You can fully for your kids to go away to four or five years of at least state college, while living with no debt and having a truly comfortable retirement.
@Gk2003m
10 ай бұрын
In this world, appearance is everything. I’ve been accused (yes, accused) many times, by many people, of “living below your (my) means”. But of all those people, I’m the only one whose house is paid off. I did it long ago. We did modify (cash only) our home a bit, but you don’t see it from the outside. Some landscaping aside, our home looks as it did when we bought it 25 years ago. The money has been invested, wisely overall, and we can spend on things that we wish. I don’t think that makes us “upper middle class”. I think it just makes us willing to be smart.
@joethecomputerguy1
11 ай бұрын
Value. YES! Now that I am retired that's even more true. Also, now I'm retired I am no longer middle class. Happily in the low income bracket. And that means I pay no income taxes and the government (or should I say the taxpayers) pay most of my medical premiums and even 100% of all my deductibles. Being poor on paper has advantages!
@ErinTalksMoney
11 ай бұрын
Reminds me of when I read article about Warren Buffett, saying that he paid a lesser income tax rate than his secretary
@dstevens518
11 ай бұрын
@@ErinTalksMoneyI like that Warren is always going on about common sense stuff (still lives in same house decades later, etc.) but instead of talking INCOME tax, I'd like to see him talk about a WEALTH tax to help tilt this capitalist world more toward workers...
@enjoyslearningandtravel7957
11 ай бұрын
@@ErinTalksMoney I don’t see how that can be true about Warren Buffett. What he does to do that to pay so little tax. I have a distant relative that pays well over 40% maybe closer to 50% and because he pays state tax plus federal tax and he earns a lot on his investments. So apparently he’s not using any lesser income tax rate and of course he’s paying what he owes. So I’m thinking some. people are making an Assumption that most wealthy people are paying very little when it’s not always true. Plus he donates to charity and volunteers.
@enjoyslearningandtravel7957
11 ай бұрын
I’m thinking if he had to pay wealth tax on top of the 45% and more tax already pays he probably wouldn’t bother to donate to charity plus the government that would get additional tax would probably waste it. Yes, there’s a government programs that over 50% of the money usually goes to administration charges.
@dstevens518
11 ай бұрын
@@enjoyslearningandtravel7957 Agree that more accountable government is necessary, but that's not the best excuse to reject billions in tax revenue that the ultra rich are really not going to miss...
@BManDoe
9 ай бұрын
Buying expensive clothes without visible logos/branding.
@kellychuba
9 ай бұрын
Friends with money issues listen to your advice or fade away.
@vulpixelful
10 ай бұрын
I think putting off medical care due to cost also has to do with lost wages. A lot of major health problems are preventable by undergoing procedures that may even be less invasive or risky. But we have inadequate labor laws in the US, so a lot of folks cannot afford to have either no pay or reduced pay while they recover from those procedures. But they have no choice once their condition worsens...
@Socurious548
10 ай бұрын
Wait until your husband retires from the military. I’m a retiree and we have Tricare for life… and for family coverage it runs about $650….A YEAR. My civilian employer wants over that for a MONTH of family coverage. It’s well worth doing 20 years in the military for that benefit alone.
@ErinTalksMoney
10 ай бұрын
TRICARE benefits are incredible! Steve has another six years until he hits that 20 year threshold.
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