What are Graham Stefan's biggest monthly expenses?

His major monthly expenses include his Tesla car payment ($632), groceries and dining out ($350), insurance ($340), and property taxes. While his mortgage is low after accounting for rental income and tax write-offs, other costs contribute to his overall spending.

How does Graham Stefan manage his housing costs?

He lives in a property where the combined mortgage is over $2,800. However, by renting out another unit and utilizing tax write-offs (like using his garage as an office), he significantly reduces his out-of-pocket expenses, aiming for a near-zero cost of living for his own residence.

Why does Graham Stefan spend $220/month on a gym membership?

He pays for an Equinox gym membership primarily for its extreme convenience, being located next door to his office. This proximity motivates him to go more often, making the cost feel justified because he maximizes its use, unlike cheaper, less accessible options.

How does Graham Stefan invest his money?

His primary investment strategy revolves around real estate, which he has focused on since he was 21. He believes in consistent investing and buying properties. He also emphasizes not spending the principal of his investments, only the interest generated.

What is Graham Stefan's philosophy on spending and saving?

Graham Stefan saves approximately 99% of his income by keeping expenses very low. His core principle is to live off the interest generated by his investments rather than spending the principal, viewing excess income as a bonus to be invested further.

How did Graham Stefan's Tesla purchase impact his career?

Buying a Tesla in 2019 led to a viral YouTube video about its low out-of-pocket cost. This video gained millions of views, significantly boosted his subscriber count, and elevated his entire YouTube career to a new level, making it a key investment.

What advice does Graham Stefan give about relationships and finances?

He stresses the importance of finding a partner with similar values regarding saving and spending money. He also finds it beneficial to share meals, indicating a partner who is comfortable with practical, frugal habits.

Reacting to Myself: Living On $1.6 Million A Year In Los Angeles | Millennial Money

Graham Stephan

Education3 min read25 min video

Nov 22, 2019|383,739 views|18,249|2,180

millionaire reacts millionaire cnbc cnbc make it graham stephan living on 1.6 million a year millennial money how to invest how to invest in stocks how to invest in real estate investing investing for beginners

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Key Moments

TL;DR

Graham Stephan reacts to his own Millennial Money feature, detailing his $1.6M annual income & frugal habits.

Key Insights

Full-circle moment: Graham Stephan, who previously reacted to Millennial Money videos, is now featured on the show.

Income streams: His $1.6M annual income is primarily from YouTube (85%) and secondarily from real estate (15%).

Frugal living in LA: Despite high income, he maintains low expenses, making his mortgage effectively free and prioritizing savings.

Strategic spending: Luxury expenses like a Tesla and Equinox gym membership are justified by tax benefits and increased productivity.

Value of consistency: Graham emphasizes that consistent effort in real estate investing, like other fields, leads to long-term wealth.

Community and criticism: He values his supportive online community but has learned to cope with negative comments.

A FULL-CIRCLE MOMENT WITH MILLENNIAL MONEY

Graham Stephan shares his excitement and slight nervousness about being featured on CNBC's Millennial Money, a show he previously reacted to and critiqued on his secondary YouTube channel. This feature represents a "full-circle" moment, stemming from his early videos where he reviewed CNBC's content and even met with the subjects in person. His secondary channel, dedicated to this format, has gained significant traction, leading to his own appearance on the platform.

LIVING THE LA LIFESTYLE ON A HIGH INCOME

At 29, Graham reports earning $1.6 million annually while living in Los Angeles. His diverse income streams include real estate sales, real estate investments, and primarily, his YouTube channels. He emphasizes that his days are meticulously planned, with a significant portion dedicated to YouTube content creation due to its current high earning potential and perceived impermanence.

STRATEGIC SPENDING AND FRUGAL HABITS

Graham details his surprisingly low personal expenses, despite his high income. His mortgage is effectively covered by rental income and tax write-offs, making his living situation nearly free. He spends only $200 on groceries monthly by price shopping and prioritizes saving 99% of his income, only spending what his investments generate. This frugal approach extends to avoiding luxuries like daily coffees from expensive cafes.

JUSTIFIED LUXURIES AND TAX ADVANTAGES

While generally frugal, Graham makes strategic, high-value purchases. His Tesla car payment is financed to maximize tax deductions on the interest, and he uses a premium gym like Equinox due to its proximity to his office, which motivates him to use it more. He also utilizes premium credit cards for their annual fees, which are offset by travel credits and other benefits, providing more value than their cost.

THE POWER OF CONSISTENT REAL ESTATE INVESTMENT

Graham's investment philosophy centers on real estate, a strategy he has followed consistently since age 21. He believes in simply buying more properties and repeating the process. He contrasts active YouTube income, which requires significant daily effort, with passive real estate investments that demand much less time. He advocates for starting early, being consistent, and understanding that the core principles of real estate investing remain timeless.

YOUTUBE'S ROLE AND NAVIGATING CRITICISM

A significant portion of Graham's income is derived from YouTube, a platform he approaches with a strategic mindset, recognizing its volatility. He believes in maximizing the opportunity while it lasts, viewing it as a scaled business that pays well for content creation. He also discusses his journey of learning to handle negative online comments, initially finding them deeply upsetting but eventually realizing they often reflect the commenter's issues rather than his own shortcomings.

INCOME BREAKDOWN AND BUSINESS PHILOSOPHY

Graham breaks down his monthly earnings, with his main YouTube channel generating the largest portion, followed by his Teachable courses, secondary YouTube channel, real estate commissions, and affiliate/sponsorship income. He is upfront about earning more from discussing real estate on YouTube than from actual investments, attributing this to the active nature of content creation versus passive income. He is selective about sponsorships, prioritizing genuine product use over large payouts.

RELATIONSHIP VALUES AND PERSONAL REWARDS

Graham highlights the importance of shared values in relationships, particularly regarding financial habits. He appreciates his girlfriend's similar frugality and their shared practice of splitting meals. He also uses small, inexpensive rewards, like items from McDonald's dollar menu, as motivation to complete work, finding that these immediate incentives enhance his productivity and overall earnings. He desires future travel without work obligations.

Mentioned in This Episode

●Products

●Software & Apps

●Companies

●Books

●People Referenced

Graham Stefan's Frugal Living & Investment Strategies

Practical takeaways from this episode

Do This

Leverage business expenses and interest for tax write-offs (e.g., car financing).

Use high-value credit cards strategically to recoup annual fees with credits and perks.

Build wealth through consistent real estate investing.

Create informational content (like courses) based on your expertise.

Reward yourself with small treats to stay motivated.

Find a partner with similar financial values.

Invest in opportunities that scale exponentially, like YouTube content creation.

Avoid This

Don't spend the principal of your investments; only spend the interest.

Avoid unnecessary expenses like overpriced coffee from cafes.

Don't be discouraged by negative online comments; focus on your goals.

Don't shy away from lucrative opportunities if they align with your skills, even if they seem different from your primary career.

Don't push products aggressively; build value and trust.

Graham Stefan's Monthly Expenses

Data extracted from this episode

Category	Amount
Mortgage (after rental income)	$200
Property Tax (out-of-pocket)	~$260
Transportation (Tesla payment)	$632
Insurance	$340
Food (Groceries & Eating Out)	$350
Miscellaneous (Entertainment, Cat, Amazon Prime, Haircuts)	$266
Gym Membership (Equinox)	$220
Credit Card Annual Fees	$129
Phone Bill (T-Mobile)	$85

Graham Stefan's Monthly Income Streams (Averages/Estimates)

Data extracted from this episode

Source	Average Monthly Income
YouTube Main Channel	$100,000+
Teachable Courses	$28,837
YouTube Second Channel	$9,256
Real Estate Commissions	$8,572
Affiliates and Sponsors	$7,222
Rental Income (Gross)	$15,105
Online Program Sales (Real Estate Agent & YouTube Growth)	~$30,000+ (Combined Annual)

Common Questions

Graham Stefan generates his income through multiple streams including his main YouTube channel, a second YouTube channel, online courses sold on Teachable and other platforms, affiliate marketing, sponsorships, and real estate commissions and investments. His YouTube presence is currently his most significant income driver.

Topics

Credit Card Rewards Automobile Financing Celebrity Clientele

Mentioned in this video

productEquinox Gym

Graham Stefan's current gym membership, which he finds expensive but convenient due to its proximity to his office, motivating him to go frequently.

bookMillennial Money

A CNBC Make It series that features individuals discussing their finances and lifestyles, which Graham Stefan initially reacted to and was eventually featured on.

softwareWestside Rentals.com

A website where Graham Stefan met a lease client, who later referred him to Wally.

softwareTeachable

The platform where Graham Stefan sells his online courses, contributing a significant portion of his monthly income.

productChase Ink

A business credit card Graham Stefan uses, part of his strategy to maximize value from annual fees.

productJPMorgan Reserve

A credit card held by Graham Stefan that offers similar travel credits to the Chase Sapphire Reserve, contributing to the overall value of his credit card portfolio.

bookZero Dollar House

A video concept Graham Stefan posted about buying a property, renovating it, and doing a cash-out refinance to pull out all his money while living in it for free.

productChase Sapphire Reserve

A credit card Graham Stefan uses, which provides a $300 travel credit and other benefits, making its annual fee worthwhile.

productAmerican Express Platinum

One of the four credit cards Graham Stefan holds, contributing to his monthly credit card annual fees but providing value through credits and perks.

companyCNBC Make It

The media company that produces the Millennial Money series, featuring Graham Stefan in this episode.

personAlex Pardo

The subject of an early Millennial Money video that Graham Stefan reacted to, whom Stefan later met in person.