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Rule number one make more money rule number two have that money make me money rule number three repeat hello there subscribers i hope you guys are doing phenomenal today today i want to do a video about why three million dollars is the new $1,000,000 still in 2017 so many people think getting rich is a million dollars and it’s something that was created in the 1980s
Get a million dollars in your rich oh if i just had a million dollars i would be set i would be rich i’d be set for life i would be awesome people still think a million dollars is rich and it’s like no it is not the bare minimum i consider someone rich is three million dollars three million is now the 1 million what 1 million meant in the 1980s is now three million
Dollars and we need to change our mindsets about this guys and we’re gonna look at some things and i think these things we’re gonna look at will really open up your mind you’ll realize a million dollars heck no you’re not rich you need to have at least 3 million to be really considered rich at least in the united states of america if you live you know in some other
Country maybe it’s different but i know in the uk it’s pretty much the same thing if you live in canada most parts of canada it’s still the same exact thing guys so let’s look at this here so a million dollars what can a million dollars get you in new york well in harlem you can get with a million dollars you can get a 995 square-foot two-bedroom two-bath i guess
You call that a home nine hundred ninety five square feet a million dollars i wouldn’t walk in there and say that person is rich in manhattan you can get a 1-bedroom 1-bath 601 square foot apartment for a million dollars are you kidding me in a little better part of manhattan near the financial district you can get a studio not even necessarily a one-bedroom it’s
Called a studio with one bath 540 square feet it’s a million dollars i’m not walking in any of those places and thinking that person’s rich heck no so you’re gonna tell me you’re rich at a million dollars and you can only afford that mmm let’s go ahead and look go out to la let’s look at la here you can get a three-bedroom two-bath in la 1,600 square feet for a
Million just under a million dollar come on guys like a million dollars is not rich 4-bedroom 2bath 70 hundred square feet you raped by the airport it’s so close to airport that you could probably hear the planes going over constantly and isn’t that fun to hear right just around a million dollars there okay so let’s say well jeremy that’s manhattan or that’s new
York and you know that’s la those are really expensive places so let’s come out to my city i live in las vegas that’s one of the cheaper places to live out there so yeah what a million dollars get you in henderson which is a suburb of las vegas for you guys that don’t know you can get a million dollar house absolutely six bedroom five bath 4,600 square feet most
People that walk in there 99 percent people would say think that person’s rich that lives in that house but guess what you just had to part with your entire million dollars to get a house that you would be considered rich in the city i live in which is one of the cheaper places out there so there’s no way you can tell me just based upon real estate alone that you
Are rich at a million dollars when that’s all you can get look at those houses we looked at in la look at those places in new york guys they were like beyond small yeah no way i’m walking in a 600 square foot studio and like oh this person’s really rich no way possible guys but it’s not just real estate it’s not just real estate let’s look at some other things here
So let’s say you all million dollars you had all million dollars you have it all in stocks okay i’m around 8% game you’ll probably get on those stocks per year on average okay that means you’re making about $80,000 a year you take out the taxes out of that maybe you’re getting fifty five thousand sixty thousand dollars you’re not rich if you’re making fifty five
Or sixty thousand dollars on your money per year i’m sorry that’s good that’s certainly really good for most people but you’re not a rich person if that’s all you’re making on your money so that’s like a three million this is why i consider 3 million the lowest entry level that means you’re making around almost a quarter million dollars a year off of if you’re
Getting that 8 percent per year which is just an average return and so basically after taxes and whatnot maybe you’re clearing about a hundred and fifty thousand so that’s a little better that’s a least a little bit closer than making fifty five thousand per year off of stocks guys so that’s that’s another reason they’re all you based upon your stock market gains
So get some other things here so college tuition average annual increase in college tuition from 1980 to 2014 grew by nearly 260 percent holy smokes in 1980 the average cost of tuition room and board fees for a four-year post-secondary institution was around 94 hundred dollars now that number is actually well when this was taken here this was twenty three thousand
Eight hundred seventy two dollars but this was a few years old so now it’s all over twenty five thousand dollars so if let’s say you just got two kids right you just have two kids you just want to pay for them to go to an average school and just get a four-year degree a bachelor’s degree a bs degree okay you’re gonna have to part with five percent of your net wealth
Just as in two kids to average college and that’s nowadays and that price is probably gonna go up and up and up and up and up over time right five percent of your net worth is going to just send your kids to a four-year college come on guys this is another reason why a million dollars you just cannot consider someone rich in a million dollars we’re gonna price up
Bacon you know how much i love bacon i’m sure you guys love bacon as well in the eighties you get a pound of bacon in front of two bucks go to your local grocery store and see what bacon is if you’re lucky you can get on sale for like four bucks a pound usually the the general prices on the bacon for a pound is around seven eight bucks guys one of my favorite movies
Ever die hard this was filmed in los angeles obviously his movie came out in 1988 gas price on the the screen there 74 cents a gallon guys in the the die hard movie in los angeles now that price you know in 2017 is close to $3 a gallon on average you ferguson la guys everything is gone up drastically since the 1980s so why are we still using a million dollars as
The number so get some more if you’re not convinced already the cost of a car so let’s look at 1986 so this is goes all the way up to 2016 so we look at 1986 1986 and cost you around $12,000 for an average car now we’re well over $25,000 for an average car basically meaning it’s gone up over double over double the price so based upon everything you look at you
Know rich a rich person you consider having a really nice house like nicer than 99% of people out there right you consider them having some really nice cars these two really nice cars right and still having a bunch of money in the bank at a million dollars you’re not even you’re barely able to get a nice house and in most places you’re not even going to get a nice
House if you’re in la san francisco toronto you’re in london you’re in new york you’re in boston you’re not even gonna be able to get a house that people who would consider you’re rich they’re not even gonna be able to afford a house at that price point right you’re just gonna get a dump a 600 square foot and dump if you live in new york for a million dollars okay
So you can’t even get the house so let’s say you live out here in vegas where it’s cheaper right or any any place where it’s a lot cheaper right okay you can get in that million dollar house but then you’ve got nothing left over if that’s all you got but if you had three million dollars you can get that nice house you can get a couple nice cars a hundred thousand
Dollars a piece a really nice suv you know a really nice car and then you still have you know 1.7 1.8 million dollars left over to invest and make yourself money and do all those kinds of things but a million dollars guys just by any metric you can not consider someone rich and a million dollars so this whole thing about i just need a million dollars if i just get
A million dollars like i’m done i’m rich at that point absolutely not absolutely not unless your your your way of thinking about being rich is a different way than what a traditional standard was but don’t call yourself rich as far as financially rich if you have a million dollars do not call yourself financially rich maybe you’re rich in the heart maybe you you
Feel riches of the butt man and then the general theme of things you’re not rich at a million dollars you’re barely rich at three million and that’s why consider three million dollars in assets vs. liabilities as rich now versus you know a million dollars which is still the standard out there guys so i hope you enjoyed this video today i hope it really opened up
Your guys minds on on this whole you know a million dollars and i made it type thing absolutely not just three million plus thank you for watching guys and have a great day you
Transcribed from video
$3,000,000 IS THE NEW "RICH" By Financial Education