1 00:00:07,900 --> 00:00:12,949 Suze: January 25th, 2026. Welcome everybody to the Women and Money podcast, 2 00:00:13,239 --> 00:00:17,399 Suze: as well as everybody smart enough to listen. And today 3 00:00:17,399 --> 00:00:22,079 Suze: is Suze School, so get out your Suze notebooks cause 4 00:00:22,079 --> 00:00:25,159 Suze: you're gonna want to take notes again on this one. 5 00:00:26,340 --> 00:00:29,420 Suze: So, as I told all of you, and I've told 6 00:00:29,420 --> 00:00:32,020 Suze: all of you over all these years, that if you 7 00:00:32,020 --> 00:00:34,418 Suze: have a question or a comment, you can write in 8 00:00:34,418 --> 00:00:39,740 Suze: to ask Suze Podcast, that's S U Z E podcast 9 00:00:39,740 --> 00:00:43,220 Suze: at gmail.com. And I read many of the emails, as 10 00:00:43,220 --> 00:00:46,299 Suze: I've told you, if your question is chosen by KT 11 00:00:46,590 --> 00:00:50,259 Suze: it's answered on the podcast, but I read a lot 12 00:00:50,259 --> 00:00:55,220 Suze: of them. And recently, I got an email from a 13 00:00:55,220 --> 00:00:59,020 Suze: woman by the name of Maria, and she's from Texas. 14 00:00:59,139 --> 00:01:01,549 Suze: I hope she's not freezing right now, but anyway, she's 15 00:01:01,549 --> 00:01:04,980 Suze: from Texas and she said the following: Suze. 16 00:01:05,540 --> 00:01:08,910 Suze: All the headlines say unemployment is low and the stock 17 00:01:08,910 --> 00:01:13,849 Suze: market is at all-time highs, but my husband's hours were cut. 18 00:01:14,110 --> 00:01:16,949 Suze: Our rent is up $300 a month, and we had 19 00:01:16,949 --> 00:01:19,750 Suze: to put together money for groceries, and we then had 20 00:01:19,750 --> 00:01:22,949 Suze: to put him on a credit card. Are we doing 21 00:01:22,949 --> 00:01:28,250 Suze: something wrong? And I wrote her back and I said, No, Maria, 22 00:01:28,830 --> 00:01:30,269 Suze: you are living 23 00:01:30,750 --> 00:01:35,699 Suze: in what I call the lower arm of the "K" recovery, 24 00:01:36,279 --> 00:01:39,239 Suze: so the key is not to blame yourself, Maria. It's 25 00:01:39,239 --> 00:01:42,959 Suze: to understand the forces that are working against you and 26 00:01:42,959 --> 00:01:46,629 Suze: then take back the power that you do have. And 27 00:01:46,629 --> 00:01:49,959 Suze: if you remember a few weeks ago I said to KT, 28 00:01:50,069 --> 00:01:51,879 Suze: she said, Well, what are you gonna do on Sunday? 29 00:01:51,959 --> 00:01:55,199 Suze: I said, Oh, I'm gonna teach everybody about the difference 30 00:01:55,199 --> 00:01:58,379 Suze: between a "V" and a "U" and a "K-shaped" recovery. 31 00:01:59,389 --> 00:02:01,839 Suze: And she just looked at me and then we ended 32 00:02:01,839 --> 00:02:06,199 Suze: the Ask KT and Suze Anything podcast. And then something 33 00:02:06,199 --> 00:02:08,839 Suze: came up and I decided to do a different podcast 34 00:02:08,839 --> 00:02:12,199 Suze: and a different podcast, and then after I got this 35 00:02:12,199 --> 00:02:16,119 Suze: email the other day, I decided, all right, this Suze 36 00:02:16,119 --> 00:02:21,679 Suze: School is going to be on a "V-shaped" recovery, a "U-shaped" recovery, 37 00:02:21,758 --> 00:02:25,479 Suze: and a "K-shaped" recovery, and why you need to know 38 00:02:25,479 --> 00:02:27,080 Suze: what those mean. 39 00:02:27,809 --> 00:02:31,250 Suze: Now, before I go into that, I just want to 40 00:02:31,250 --> 00:02:36,508 Suze: say something here. Many of you have been lucky enough, truthfully, 41 00:02:36,570 --> 00:02:39,660 Suze: to be with me for the past 30 or 40 years, 42 00:02:39,970 --> 00:02:43,850 Suze: and now, you are older, you have a whole lot 43 00:02:43,850 --> 00:02:47,250 Suze: of money. A lot of these things aren't affecting you 44 00:02:47,250 --> 00:02:50,508 Suze: the same way as maybe they are affecting your children 45 00:02:50,690 --> 00:02:53,809 Suze: or your grandchildren, and therefore, you're having to even help 46 00:02:53,809 --> 00:02:56,788 Suze: them out. That's a whole another podcast on itself. 47 00:02:57,919 --> 00:03:01,500 Suze: However, I want you to listen to this podcast. 48 00:03:02,429 --> 00:03:05,948 Suze: Because what would be really great is if you could 49 00:03:05,949 --> 00:03:10,429 Suze: start educating your children who are now getting their information 50 00:03:10,429 --> 00:03:13,910 Suze: from TikTok and all these crazy things that people are 51 00:03:13,910 --> 00:03:18,350 Suze: saying so that you can help pass down this knowledge 52 00:03:18,350 --> 00:03:19,529 Suze: that you have, 53 00:03:19,960 --> 00:03:23,759 Suze: to your children, to your grandchildren, to get them to 54 00:03:23,758 --> 00:03:26,758 Suze: listen to this podcast, because many of the things on 55 00:03:26,758 --> 00:03:30,440 Suze: this podcast are still relevant to them, but they don't 56 00:03:30,440 --> 00:03:32,960 Suze: think they need to know any of this stuff, and 57 00:03:32,960 --> 00:03:37,839 Suze: they could not be more wrong if they tried. So, 58 00:03:37,919 --> 00:03:45,110 Suze: let's start with a quick Suze School on recoveries. A "V-shaped" recovery. Now, 59 00:03:45,160 --> 00:03:47,100 Suze: can you just draw a V, 60 00:03:47,830 --> 00:03:50,809 Suze: in front of you right now in your Suze notebooks? 61 00:03:51,429 --> 00:03:57,589 Suze: That's when the economy falls fast, but it bounces back 62 00:03:57,589 --> 00:04:00,669 Suze: just as fast. So look at the V that you 63 00:04:00,669 --> 00:04:04,990 Suze: have in front of you straight down, straight up, and 64 00:04:04,990 --> 00:04:09,589 Suze: most people when we're in a "V-shaped" recovery, it affects 65 00:04:09,589 --> 00:04:13,820 Suze: them all the same. They lose ground together. It doesn't 66 00:04:13,820 --> 00:04:15,869 Suze: matter whether you have money, you don't have money, you 67 00:04:15,869 --> 00:04:17,450 Suze: all lose ground together. 68 00:04:17,950 --> 00:04:24,380 Suze: But then you all recover together. Now, draw a U 69 00:04:24,380 --> 00:04:26,640 Suze: on the paper in front of you or picture it 70 00:04:26,640 --> 00:04:28,179 Suze: if you're not willing to draw it. 71 00:04:29,230 --> 00:04:35,920 Suze: And a "U-shaped" recovery is slower. You go down, you 72 00:04:35,920 --> 00:04:39,839 Suze: sit at the bottom for quite a while, and then 73 00:04:39,839 --> 00:04:45,859 Suze: you slowly climb back up, so the pain lasts longer. 74 00:04:45,959 --> 00:04:51,470 Suze: But again, what's interesting is that it's really spread across 75 00:04:51,470 --> 00:04:58,299 Suze: the entire economy, so everybody is affected the same way. 76 00:04:59,230 --> 00:05:01,109 Suze: Now draw a K. 77 00:05:02,820 --> 00:05:07,059 Suze: A "K-shaped" recovery is very different. 78 00:05:07,730 --> 00:05:14,510 Suze: It's not mainly about time. It's about who. Who the lines, 79 00:05:14,519 --> 00:05:18,469 Suze: as you look at your K, they split one group 80 00:05:18,850 --> 00:05:22,690 Suze: versus another. Part of the K that's going up is 81 00:05:22,690 --> 00:05:25,970 Suze: one group of people. The part of the K that 82 00:05:25,970 --> 00:05:31,450 Suze: is going down is another group of people. So the 83 00:05:31,450 --> 00:05:32,988 Suze: line that's going up, 84 00:05:34,010 --> 00:05:39,169 Suze: their income goes up. The jobs are stable. Their portfolios 85 00:05:39,170 --> 00:05:43,850 Suze: go up. That's who makes up that top arm. The 86 00:05:43,850 --> 00:05:50,089 Suze: one that goes down, their income stalls or falls. Their 87 00:05:50,089 --> 00:05:56,350 Suze: debt grows, their savings disappear. The credit card debt increases. 88 00:05:56,890 --> 00:06:01,109 Suze: Those are the people that make up the bottom half 89 00:06:01,109 --> 00:06:03,308 Suze: of that. Do you see that? 90 00:06:04,070 --> 00:06:09,649 Suze: That's why Maria feels like nothing is going right for her, 91 00:06:10,149 --> 00:06:13,350 Suze: but yet all the news is how positive the stock 92 00:06:13,350 --> 00:06:15,350 Suze: market is going up. Sure it goes down, but it 93 00:06:15,350 --> 00:06:18,750 Suze: goes back up again, and the economy is doing great, 94 00:06:18,869 --> 00:06:22,969 Suze: lots of jobs. That's why there is such a difference. 95 00:06:23,869 --> 00:06:28,868 Suze: So we need to understand, number one, why we are 96 00:06:28,869 --> 00:06:33,669 Suze: in a "K" recovery and what we can do about it. 97 00:06:34,230 --> 00:06:38,459 Suze: This is all about education now, 'cause, you know, I 98 00:06:38,459 --> 00:06:41,529 Suze: think it's important that you understand, well, how did we 99 00:06:41,529 --> 00:06:46,579 Suze: even get in the "K" recovery to really understand what 100 00:06:46,579 --> 00:06:49,859 Suze: to do about it, depending which part of the K 101 00:06:49,859 --> 00:06:50,980 Suze: you happen to be in. 102 00:06:52,019 --> 00:06:56,799 Suze: We ended up here truthfully, and it started after the 103 00:06:56,799 --> 00:06:58,160 Suze: 2020 recession. 104 00:06:59,119 --> 00:07:04,619 Suze: So remember the pandemic did not hit every job the same. 105 00:07:05,089 --> 00:07:08,130 Suze: If you could work from home, you could Zoom, remember that? 106 00:07:08,238 --> 00:07:10,959 Suze: That's when I wanted you to all buy Zoom. You 107 00:07:10,959 --> 00:07:15,880 Suze: could do emails, laptops. Chances are truthfully you kept your 108 00:07:15,880 --> 00:07:19,839 Suze: paycheck and those jobs were more likely to be with 109 00:07:19,839 --> 00:07:25,760 Suze: higher income, more education, professional or tech fields and if 110 00:07:25,760 --> 00:07:28,760 Suze: your job required you to show up in person. 111 00:07:29,640 --> 00:07:33,179 Suze: You were a server, you were a hotel worker. You 112 00:07:33,179 --> 00:07:39,160 Suze: were gig workers. Many retail workers, your job either disappeared 113 00:07:39,160 --> 00:07:44,679 Suze: altogether or your hours were slashed during the lockdowns, and 114 00:07:44,679 --> 00:07:48,660 Suze: that's strike one for the lower arm of the K. 115 00:07:49,119 --> 00:07:54,200 Suze: Makes sense? And actually, if you think about it, those 116 00:07:54,200 --> 00:07:57,480 Suze: professionals who were still going to their jobs from home 117 00:07:57,480 --> 00:07:58,380 Suze: or whatever. 118 00:07:58,809 --> 00:08:03,880 Suze: They actually made more money than less, because why? They 119 00:08:03,880 --> 00:08:05,929 Suze: didn't have to pay to go into the office. They 120 00:08:05,929 --> 00:08:08,649 Suze: didn't have to get clothing to go into the office, 121 00:08:08,720 --> 00:08:11,910 Suze: they didn't have to buy food during the day. They actually, 122 00:08:12,010 --> 00:08:17,529 Suze: bottom line, made more money than less, while others made 123 00:08:17,529 --> 00:08:19,410 Suze: no money at all. Second... 124 00:08:20,190 --> 00:08:24,790 Suze: The government and the Federal Reserve stepped in, remember this? 125 00:08:25,149 --> 00:08:31,309 Suze: With massive, massive support. They gave you stimulus checks, enhanced unemployment, 126 00:08:31,630 --> 00:08:37,390 Suze: PPP loans, and truthfully near zero interest rates. You didn't 127 00:08:37,390 --> 00:08:40,709 Suze: have to pay insurance or your student loans or any 128 00:08:40,710 --> 00:08:45,570 Suze: of that, and that absolutely truthfully helped avoid a depression 129 00:08:45,849 --> 00:08:50,468 Suze: and it kept markets, as you know, and big companies afloat. 130 00:08:50,770 --> 00:08:54,530 Suze: It did not help many of the small mom and 131 00:08:54,530 --> 00:08:58,969 Suze: pop companies. They all closed. But who, I want you 132 00:08:58,969 --> 00:09:03,329 Suze: to think about this now, who benefits the most when 133 00:09:03,330 --> 00:09:08,468 Suze: stock markets and real estate take off because money is cheap? 134 00:09:08,809 --> 00:09:10,809 Suze: Why do I say money is cheap? 135 00:09:11,239 --> 00:09:14,199 Suze: Money was cheap during them because if you remember interest 136 00:09:14,200 --> 00:09:16,280 Suze: rates went all the way down. You could get a 137 00:09:16,280 --> 00:09:20,429 Suze: mortgage for 2 or 3%. Interest rates were just cheap 138 00:09:20,429 --> 00:09:24,659 Suze: to do anything, whatever you wanted to do, money was cheap. 139 00:09:25,080 --> 00:09:29,030 Suze: The people who also though got damaged during that time 140 00:09:29,359 --> 00:09:33,750 Suze: were people in retirement when interest rates went down to 0%. 141 00:09:34,429 --> 00:09:37,039 Suze: And all of you were dependent on the interest rate 142 00:09:37,039 --> 00:09:40,919 Suze: on your money market accounts or your CDs or your treasuries, 143 00:09:40,960 --> 00:09:44,159 Suze: whatever they may be. So do you see how there 144 00:09:44,159 --> 00:09:48,598 Suze: was a difference? Interest rates were low. Some people prospered 145 00:09:48,599 --> 00:09:53,440 Suze: from that. Other people that were older and needed income 146 00:09:53,440 --> 00:09:56,289 Suze: at that time, they were the ones that were hurt. 147 00:09:56,440 --> 00:10:01,900 Suze: Are you starting to understand the "K" recovery? And next 148 00:10:01,900 --> 00:10:03,340 Suze: came inflation. 149 00:10:04,130 --> 00:10:07,690 Suze: And that's because supply chains were a mess. Do you 150 00:10:07,690 --> 00:10:10,840 Suze: remember trucks being lined up waiting for the ships to 151 00:10:10,840 --> 00:10:13,489 Suze: unload and nobody could unload them and da da da da. 152 00:10:13,849 --> 00:10:18,390 Suze: So demands for goods and housing exploded. 153 00:10:18,909 --> 00:10:24,080 Suze: And prices jumped and lower income households were hit the 154 00:10:24,080 --> 00:10:28,210 Suze: hardest because more of their money was going to essentials 155 00:10:28,210 --> 00:10:33,799 Suze: like food, rent, and gas. Higher income households, everybody, had 156 00:10:33,799 --> 00:10:38,080 Suze: more cushion, obviously they had more fixed rate mortgages and 157 00:10:38,080 --> 00:10:41,359 Suze: more assets that were also at the same time going 158 00:10:41,359 --> 00:10:43,700 Suze: up in value. 159 00:10:44,479 --> 00:10:48,598 Suze: So let's put it all together for you right now. Bigger, 160 00:10:49,000 --> 00:10:55,039 Suze: more digital, better capitalized companies and their shareholders, they recovered 161 00:10:55,039 --> 00:11:00,210 Suze: fast and then surged. Their money was surging. They all 162 00:11:00,210 --> 00:11:03,679 Suze: had it in the Magnificent Seven. The companies, the earnings, 163 00:11:03,760 --> 00:11:05,039 Suze: they were surging. 164 00:11:05,770 --> 00:11:13,609 Suze: But smaller, more in-person, lower margin businesses like restaurants and 165 00:11:13,609 --> 00:11:19,718 Suze: everything and their employees suffered longer and deeper, and truthfully, 166 00:11:19,729 --> 00:11:26,049 Suze: many of you are still rebuilding. That is the "K". 167 00:11:26,900 --> 00:11:31,229 Suze: Do you all understand how our population now is made 168 00:11:31,229 --> 00:11:35,109 Suze: up of many people that are going up and many 169 00:11:35,109 --> 00:11:38,530 Suze: people are going down. But listen, I am not here 170 00:11:38,530 --> 00:11:42,468 Suze: to give you an economic lecture. You know I hate that, really, 171 00:11:42,590 --> 00:11:46,070 Suze: but you need to know my job is to make 172 00:11:46,070 --> 00:11:50,989 Suze: you strong, secure, and powerful with your money. So what 173 00:11:50,989 --> 00:11:53,329 Suze: do you do if the recovery 174 00:11:53,780 --> 00:11:59,218 Suze: is "K-shaped"? First you have to know which arm you're on. 175 00:12:00,119 --> 00:12:03,770 Suze: You have to be really honest with yourself. And are 176 00:12:03,770 --> 00:12:07,289 Suze: you on the upper arm or the lower arm? How 177 00:12:07,289 --> 00:12:09,890 Suze: do you know? All right, I want you to ask 178 00:12:09,890 --> 00:12:14,650 Suze: yourself questions. Has your income grown? Has it stayed flat? 179 00:12:14,770 --> 00:12:20,130 Suze: Has it fallen since 2020? Has it, everybody? Are your 180 00:12:20,130 --> 00:12:24,689 Suze: debts going down every year, or are they going up? 181 00:12:25,630 --> 00:12:32,510 Suze: Are you regularly investing every single month into your Roth 182 00:12:32,510 --> 00:12:36,349 Suze: retirement accounts? If you're able, are you maxing out your 183 00:12:36,349 --> 00:12:41,150 Suze: Roth IRA and your Roth 401k? Or have you stopped 184 00:12:41,150 --> 00:12:45,359 Suze: putting money into your Roth IRA because you don't have 185 00:12:45,359 --> 00:12:47,390 Suze: the money to do it anymore? 186 00:12:48,330 --> 00:12:51,289 Suze: Are you? And maybe you work for a company that 187 00:12:51,289 --> 00:12:55,729 Suze: doesn't offer 401k or you're working for someplace that doesn't 188 00:12:55,729 --> 00:12:58,049 Suze: even have any type of retirement account. 189 00:12:58,799 --> 00:13:00,869 Suze: So you're no longer able to put money into a 190 00:13:00,869 --> 00:13:07,000 Suze: Roth IRA. Where are you? 'Cause if your income is 191 00:13:07,000 --> 00:13:11,599 Suze: stable or rising, you have an 8 to 12 month 192 00:13:11,599 --> 00:13:12,760 Suze: emergency fund. 193 00:13:13,489 --> 00:13:19,409 Suze: Your debt is under control. You are investing regularly. You 194 00:13:19,409 --> 00:13:22,840 Suze: are likely on or close to the upper arm of 195 00:13:22,840 --> 00:13:26,429 Suze: the "K", my friends. Maybe you still have work to do, 196 00:13:26,809 --> 00:13:29,489 Suze: but the wind, so to speak, is at your back. 197 00:13:29,570 --> 00:13:33,359 Suze: It's pushing you right now. However, 198 00:13:33,909 --> 00:13:37,549 Suze: after you've answered those questions, if your income is unstable, 199 00:13:37,880 --> 00:13:42,200 Suze: your savings are thin or non-existent, your credit card balances 200 00:13:42,200 --> 00:13:46,640 Suze: are growing, and you're not investing, well, guess what? You 201 00:13:46,640 --> 00:13:51,200 Suze: are on the lower arm. Now, that is not a 202 00:13:51,200 --> 00:13:52,400 Suze: characteristic flaw. 203 00:13:52,909 --> 00:13:55,909 Suze: Do not feel like Maria who wrote in the other 204 00:13:55,909 --> 00:13:58,309 Suze: day and said, What am I doing wrong, da da 205 00:13:58,309 --> 00:14:00,869 Suze: da because her email went on and on, that it 206 00:14:00,869 --> 00:14:04,710 Suze: was her fault. What was she doing wrong? You're not 207 00:14:04,710 --> 00:14:09,189 Suze: doing anything wrong. You just happen to be part of 208 00:14:09,190 --> 00:14:11,049 Suze: the lower end of the "K". 209 00:14:11,849 --> 00:14:17,460 Suze: And so, it's important that in a "K-shaped" situation, 210 00:14:18,289 --> 00:14:26,979 Suze: protection comes first. So these are things that are non-negotiable 211 00:14:26,979 --> 00:14:31,619 Suze: in my opinion for you to protect yourself if you 212 00:14:31,619 --> 00:14:35,760 Suze: are on the line of the "K" that is going down. 213 00:14:36,539 --> 00:14:40,760 Suze: All right, are you ready, everybody? You need a bare 214 00:14:40,880 --> 00:14:47,039 Suze: bones spending program that is based on reality, not hope. 215 00:14:47,419 --> 00:14:51,599 Suze: Every single dollar has to have a job. It has 216 00:14:51,599 --> 00:14:56,679 Suze: to go for your needs first and maybe your wants 217 00:14:56,940 --> 00:15:00,979 Suze: months or years from now. So you are on a 218 00:15:00,979 --> 00:15:05,159 Suze: needs only basis at this point in time. 219 00:15:05,760 --> 00:15:09,080 Suze: It is essential and I am telling you it is 220 00:15:09,080 --> 00:15:12,239 Suze: essential and I know that you're like, "but Suze, I 221 00:15:12,239 --> 00:15:15,000 Suze: don't even have enough money to pay my bills." Listen 222 00:15:15,000 --> 00:15:17,679 Suze: to me. If you don't have enough money to pay 223 00:15:17,679 --> 00:15:20,400 Suze: your bills while you have a paycheck coming in, how 224 00:15:20,400 --> 00:15:22,520 Suze: are you going to pay those exact same bills when 225 00:15:22,520 --> 00:15:26,000 Suze: you no longer have a paycheck coming in? So I 226 00:15:26,000 --> 00:15:31,679 Suze: am asking you to have at least eight months, preferably 12, 227 00:15:31,799 --> 00:15:34,380 Suze: but all right, eight months of 228 00:15:35,200 --> 00:15:41,640 Suze: must pay expenses in a true emergency fund that is safe, liquid, 229 00:15:41,789 --> 00:15:47,400 Suze: and not invested in stocks. Now you know that I 230 00:15:47,400 --> 00:15:51,559 Suze: love Alliant Credit Union, and at the beginning of every 231 00:15:51,559 --> 00:15:54,510 Suze: one of these podcasts, the only thing currently you have 232 00:15:54,510 --> 00:15:59,739 Suze: heard me talk about was the Ultimate Opportunity Savings Account. 233 00:16:00,349 --> 00:16:03,859 Suze: If you have not started a savings account yet. 234 00:16:04,640 --> 00:16:08,789 Suze: I am asking you to go to my alliant.com. I 235 00:16:08,789 --> 00:16:11,559 Suze: do not make a penny if you do this, not 236 00:16:11,559 --> 00:16:15,559 Suze: a penny. They sponsor the podcast and that is it. 237 00:16:15,880 --> 00:16:19,679 Suze: And truthfully, everybody, how many podcasts do you listen to, 238 00:16:20,320 --> 00:16:22,359 Suze: in the middle of the podcast, have a break and 239 00:16:22,359 --> 00:16:25,450 Suze: say this is brought to you by such and such sponsor. 240 00:16:25,599 --> 00:16:28,580 Suze: You should go here and buy this, buy that. I 241 00:16:28,679 --> 00:16:33,239 Suze: can't do a podcast that has advertisement that wants to 242 00:16:33,239 --> 00:16:36,359 Suze: sell you something. My job is to make sure that 243 00:16:36,359 --> 00:16:38,849 Suze: you don't spend but that you save. 244 00:16:39,260 --> 00:16:42,419 Suze: So, my podcast for the past four or five years 245 00:16:42,419 --> 00:16:46,770 Suze: now has been Alliant Credit Union, who gives you the 246 00:16:46,770 --> 00:16:50,780 Suze: opportunity to save and pay you to save, and this 247 00:16:50,780 --> 00:16:53,880 Suze: year we'll be coming out with other programs for you 248 00:16:54,059 --> 00:16:59,200 Suze: that will make your money make more money. However, go 249 00:16:59,200 --> 00:17:04,000 Suze: to MyAliant.com, that's A L L I A N T.com. 250 00:17:04,339 --> 00:17:07,540 Suze: And if you already don't have a savings account, 251 00:17:08,310 --> 00:17:12,679 Suze: start one there by becoming a member at Alliant Credit Union, 252 00:17:13,000 --> 00:17:16,319 Suze: and here's how it works. If you open it and 253 00:17:16,319 --> 00:17:20,000 Suze: within the month that you've opened it, you deposit at 254 00:17:20,000 --> 00:17:24,479 Suze: least $100 and you do so every single month for 255 00:17:24,479 --> 00:17:28,060 Suze: 12 consecutive months. At the end of those 12 months, 256 00:17:28,239 --> 00:17:33,859 Suze: they will give you an extra $100. In the meantime, 257 00:17:34,540 --> 00:17:39,290 Suze: you are going to get 3.10% APR on your money, 258 00:17:39,579 --> 00:17:43,139 Suze: which is fine. There's nothing wrong with that given that 259 00:17:43,140 --> 00:17:45,979 Suze: interest rates have started to come down. So maybe you 260 00:17:45,979 --> 00:17:49,079 Suze: have money in a savings account or a checking account 261 00:17:49,079 --> 00:17:52,739 Suze: somewhere and you're not making any interest at all, but 262 00:17:52,739 --> 00:17:56,760 Suze: if you add that extra $100 into it, it makes 263 00:17:56,760 --> 00:17:59,939 Suze: your return like 16 or 18% on your money. 264 00:18:00,479 --> 00:18:03,130 Suze: You can stop at any time you want, take the 265 00:18:03,130 --> 00:18:06,409 Suze: money out, up to you, and still make your 3.10% APR. 266 00:18:07,599 --> 00:18:10,439 Suze: But can you just go there? 267 00:18:11,270 --> 00:18:14,609 Suze: So, you need to get a plan, by the way, 268 00:18:15,410 --> 00:18:19,290 Suze: to get rid of your high interest credit card debt. 269 00:18:19,569 --> 00:18:23,089 Suze: I don't care how good your credit score is, if 270 00:18:23,089 --> 00:18:28,849 Suze: you are paying 22% interest on debt, are you crazy? 271 00:18:29,699 --> 00:18:34,739 Suze: So, if you're just being lazy, and you're absolutely just 272 00:18:34,739 --> 00:18:37,300 Suze: not even looking at what interest you're paying and you're 273 00:18:37,300 --> 00:18:40,458 Suze: carrying debt to get yourself by, like Maria had to 274 00:18:40,459 --> 00:18:44,160 Suze: put her food on credit cards, can you just look 275 00:18:44,300 --> 00:18:47,540 Suze: at what your FICO score is? Can you just look 276 00:18:47,540 --> 00:18:50,619 Suze: at the interest rates on your card and make a 277 00:18:50,619 --> 00:18:52,300 Suze: plan to get out? 278 00:18:53,010 --> 00:18:57,079 Suze: So, it is really important that you do that also, 279 00:18:57,430 --> 00:19:00,810 Suze: for those of you who have no life insurance whatsoever, 280 00:19:01,050 --> 00:19:04,890 Suze: and people are dependent upon you if something were to 281 00:19:04,890 --> 00:19:08,349 Suze: happen to you like you died, that can happen, people. 282 00:19:09,099 --> 00:19:12,500 Suze: You need to get term life insurance. You need to 283 00:19:12,500 --> 00:19:17,979 Suze: stay as far away from whole life, universal life, variable 284 00:19:17,979 --> 00:19:21,780 Suze: life insurance as possible, and I don't care if you 285 00:19:21,780 --> 00:19:26,260 Suze: are getting communications from Alliant about whole life. They promised 286 00:19:26,260 --> 00:19:29,579 Suze: me that it was going to stop, and because it 287 00:19:29,579 --> 00:19:32,458 Suze: was from a company they had contracted with that was 288 00:19:32,459 --> 00:19:34,899 Suze: supposed to stop and they just haven't. 289 00:19:35,260 --> 00:19:39,540 Suze: So just know Alliant does not support that either, just 290 00:19:39,540 --> 00:19:42,939 Suze: don't do it. Both of us do not believe in it, 291 00:19:43,060 --> 00:19:46,379 Suze: just so you know. However, now, who says that? 292 00:19:47,140 --> 00:19:49,979 Suze: Who says that to you? From a sponsor? What do 293 00:19:49,979 --> 00:19:53,420 Suze: you think about that? Anyway, that's besides the point. You 294 00:19:53,420 --> 00:19:57,619 Suze: need term life insurance, and even though you don't have 295 00:19:57,619 --> 00:20:01,280 Suze: much money, believe me, all of you can afford somehow 296 00:20:01,380 --> 00:20:06,050 Suze: $25 or $30 or $40 a month to get term life, 297 00:20:06,300 --> 00:20:12,280 Suze: especially if you are healthy. So, if you are on 298 00:20:12,339 --> 00:20:14,540 Suze: the lower arm of the "K". 299 00:20:15,439 --> 00:20:20,760 Suze: Your first goal is stability. It is stability, and you 300 00:20:20,760 --> 00:20:24,859 Suze: are the ones that can provide that stability to you. 301 00:20:25,199 --> 00:20:28,079 Suze: Just a quick story. I have a friend by the 302 00:20:28,079 --> 00:20:31,270 Suze: name of Ayana. Maybe you've heard me talk about her, 303 00:20:31,800 --> 00:20:38,859 Suze: and she is a woman who survived domestic abuse, financial, psychological, 304 00:20:39,400 --> 00:20:41,780 Suze: you name it, and I've worked with her forever. 305 00:20:42,079 --> 00:20:45,199 Suze: And she wrote me yesterday and she said, Suze, please, 306 00:20:45,439 --> 00:20:50,239 Suze: my daughter's turning 15 years old. I need $100. Please 307 00:20:50,239 --> 00:20:54,760 Suze: just lend me $100 so I can do something special 308 00:20:54,760 --> 00:20:58,119 Suze: for her and I wrote her back. I said, absolutely 309 00:20:58,119 --> 00:20:59,000 Suze: I will not. 310 00:20:59,849 --> 00:21:04,569 Suze: Money is not what's going to make your daughter feel stable. 311 00:21:04,930 --> 00:21:08,250 Suze: What's gonna make her feel stable is your love and 312 00:21:08,250 --> 00:21:11,770 Suze: your ability to say, I wish I had $100. I 313 00:21:11,770 --> 00:21:15,329 Suze: wish I had something that we could go out and celebrate, 314 00:21:15,689 --> 00:21:18,530 Suze: but I want to celebrate my love and the ability 315 00:21:18,530 --> 00:21:22,750 Suze: that we have to create stability by not spending money 316 00:21:22,930 --> 00:21:26,250 Suze: and making money the goal to simply spend it. 317 00:21:27,339 --> 00:21:29,739 Suze: So you know how hard that was for me to 318 00:21:29,739 --> 00:21:30,649 Suze: say no to her? 319 00:21:31,380 --> 00:21:34,989 Suze: But you also understand that helping her there would have 320 00:21:34,989 --> 00:21:40,569 Suze: been hurting her. Do you understand that? So your first 321 00:21:41,069 --> 00:21:47,099 Suze: goal is stability and needs only. Now, if you are 322 00:21:47,099 --> 00:21:51,589 Suze: on the upper arm, what you have to understand is 323 00:21:51,589 --> 00:21:56,589 Suze: your first responsibility is to not get cocky. 324 00:21:57,189 --> 00:21:59,709 Suze: Because this can turn on you if you spend like 325 00:21:59,709 --> 00:22:04,530 Suze: the boom is gonna last forever, and many of you are, 326 00:22:04,949 --> 00:22:08,109 Suze: you know, yesterday I went out to lunch. I know 327 00:22:08,109 --> 00:22:12,149 Suze: how unusual for me, but when you're invited, especially from 328 00:22:12,150 --> 00:22:15,540 Suze: friends you haven't seen for a while, you go and 329 00:22:15,540 --> 00:22:18,469 Suze: we got there early and as KT and I were 330 00:22:18,469 --> 00:22:23,069 Suze: sitting there and it was a restaurant that was relatively expensive. 331 00:22:23,650 --> 00:22:27,099 Suze: And I looked around and my heart was breaking. 332 00:22:27,760 --> 00:22:32,280 Suze: Because I can tell when somebody can afford to be 333 00:22:32,280 --> 00:22:35,040 Suze: in a restaurant and when somebody cannot. 334 00:22:35,890 --> 00:22:38,770 Suze: I can see it. I can feel it, and I 335 00:22:38,770 --> 00:22:43,169 Suze: got so sad just sitting there watching how many people 336 00:22:43,170 --> 00:22:47,750 Suze: were treating themselves by going out, and how many people 337 00:22:47,890 --> 00:22:50,688 Suze: were enjoying themselves, 'cause it really wasn't a treat. It 338 00:22:50,689 --> 00:22:54,530 Suze: was something that they did almost every single day. You 339 00:22:54,530 --> 00:22:56,010 Suze: could just see it. 340 00:22:57,020 --> 00:23:00,939 Suze: So you have to remember that when you are on 341 00:23:00,939 --> 00:23:02,919 Suze: the upper end of that "K". 342 00:23:03,750 --> 00:23:07,300 Suze: Right, that you cannot pretend that this is going to 343 00:23:07,300 --> 00:23:11,430 Suze: last forever. Because many people who are on the upper 344 00:23:11,430 --> 00:23:14,310 Suze: end of that when they have an 8 to 12 345 00:23:14,310 --> 00:23:19,619 Suze: month emergency fund, they are putting money in their retirement accounts, 346 00:23:19,869 --> 00:23:23,819 Suze: they have that low mortgage rate on their home, they're 347 00:23:23,819 --> 00:23:27,889 Suze: sending their kids to college, they're doing all these things. 348 00:23:28,829 --> 00:23:37,129 Suze: But they're still working for income that provides them this lifestyle. 349 00:23:37,750 --> 00:23:43,458 Suze: KT and I really aren't working anymore for income. That 350 00:23:43,459 --> 00:23:45,630 Suze: doesn't mean we don't make money, but we're not working 351 00:23:45,630 --> 00:23:51,438 Suze: for income. We own assets that provide us with income 352 00:23:51,589 --> 00:23:56,589 Suze: if nobody else ever wants to pay us. So that's 353 00:23:56,589 --> 00:23:57,969 Suze: why everybody, 354 00:23:58,560 --> 00:24:02,510 Suze: I keep pushing you to max out your Roth 401k plans, 355 00:24:02,719 --> 00:24:06,119 Suze: and your employer better have one, and to own your 356 00:24:06,119 --> 00:24:11,239 Suze: home outright and to own, you know, broad diversified ETFs 357 00:24:11,239 --> 00:24:14,439 Suze: or stocks or different areas over the long run, and 358 00:24:14,439 --> 00:24:18,400 Suze: to avoid speculation really that you don't understand. 359 00:24:19,569 --> 00:24:23,790 Suze: Because I want all of you to eventually be in 360 00:24:23,790 --> 00:24:27,560 Suze: the position that KT and I are in, and that 361 00:24:27,560 --> 00:24:32,199 Suze: many of the people that are listening to the Women 362 00:24:32,199 --> 00:24:38,619 Suze: and Money podcast are also in after following this advice 363 00:24:38,839 --> 00:24:40,180 Suze: for years. 364 00:24:40,989 --> 00:24:46,349 Suze: So, the "K-shaped" recovery shows you that you cannot rely 365 00:24:46,349 --> 00:24:50,469 Suze: on a job alone, and that you must own a 366 00:24:50,469 --> 00:24:56,030 Suze: piece of the engine that benefits when markets recover. Does 367 00:24:56,030 --> 00:24:57,589 Suze: that make sense for you? 368 00:24:59,109 --> 00:25:00,889 Suze: So what can you do, 369 00:25:02,050 --> 00:25:06,290 Suze: to secure your situation really if you are in the 370 00:25:06,290 --> 00:25:08,660 Suze: lower end of the "K" and maybe even in the 371 00:25:08,660 --> 00:25:12,969 Suze: possible upper end of the "K" but you don't have 372 00:25:12,969 --> 00:25:17,709 Suze: everything together? Because if you look at it in 2020, 373 00:25:18,130 --> 00:25:22,310 Suze: the safest jobs were the ones that could go remote 374 00:25:22,560 --> 00:25:26,800 Suze: and were in resilient sectors. So if you're in a 375 00:25:26,800 --> 00:25:30,729 Suze: fragile industry, I want you to think in terms 376 00:25:31,209 --> 00:25:37,250 Suze: of skill insurance. It's not just about life insurance, disability insurance, 377 00:25:37,410 --> 00:25:43,699 Suze: home insurance, car insurance. It's about, do you have skill insurance? 378 00:25:44,170 --> 00:25:50,250 Suze: Can you add one technical skill this year that increases 379 00:25:50,250 --> 00:25:51,770 Suze: your earning power? 380 00:25:53,089 --> 00:25:56,810 Suze: Can you move towards roles that can be done from 381 00:25:56,810 --> 00:26:00,948 Suze: anywhere that are harder to automate or shut down with 382 00:26:01,010 --> 00:26:05,708 Suze: artificial intelligence or whatever it may be? Can you turn 383 00:26:05,709 --> 00:26:08,280 Suze: possibly a side gig, because many of you write me 384 00:26:08,280 --> 00:26:10,969 Suze: and say, especially the young ones, Suze, I have a 385 00:26:10,969 --> 00:26:13,569 Suze: side gig, da da da da. Can you turn that 386 00:26:13,569 --> 00:26:18,839 Suze: side gig into a real sustainable income stream, not just 387 00:26:18,839 --> 00:26:20,819 Suze: a few dollars here and there. 388 00:26:21,859 --> 00:26:27,040 Suze: Your skills, listen to me now. Your skills, your ability 389 00:26:27,040 --> 00:26:32,739 Suze: to adapt, that is, in my opinion, your ultimate insurance 390 00:26:32,739 --> 00:26:38,879 Suze: policy when we're in a "K-shaped" recovery. Here we are, everybody. 391 00:26:39,380 --> 00:26:44,339 Suze: So 2020 recession did not just come and go. 392 00:26:45,260 --> 00:26:50,670 Suze: It carved a permanent "K" into our economy in my opinion, 393 00:26:51,060 --> 00:26:54,859 Suze: one line going up and one line going down, but 394 00:26:54,859 --> 00:26:59,500 Suze: you can believe it or not, control which arm of 395 00:26:59,500 --> 00:27:01,900 Suze: that letter you live on. 396 00:27:02,680 --> 00:27:06,270 Suze: So this week, here's what I want you to do. 397 00:27:06,439 --> 00:27:10,040 Suze: Very last thing in your little Suze notebook, you took 398 00:27:10,040 --> 00:27:10,939 Suze: it out, right? 399 00:27:11,760 --> 00:27:15,479 Suze: On the top arm of the K, I want you 400 00:27:15,479 --> 00:27:19,439 Suze: to write down everything in your life that really is 401 00:27:19,439 --> 00:27:25,438 Suze: moving you up savings, investment, skills, and stable income. 402 00:27:26,400 --> 00:27:30,119 Suze: On the bottom arm, I want you to write down 403 00:27:30,119 --> 00:27:36,869 Suze: everything that is pulling you down: debts, unstable work, overspending, 404 00:27:37,119 --> 00:27:42,079 Suze: lack of emergency funds, whatever it may be. Then I 405 00:27:42,079 --> 00:27:46,079 Suze: want you to circle one item on the bottom arm there. 406 00:27:46,439 --> 00:27:50,438 Suze: And make a concrete plan, everybody to change in the 407 00:27:50,439 --> 00:27:54,560 Suze: next 30 days. Remember, haven't I always said this, you 408 00:27:54,560 --> 00:27:58,680 Suze: can't fix a financial problem with money alone. You fix 409 00:27:58,680 --> 00:28:03,319 Suze: it with truth, courage, and action. And if you're on 410 00:28:03,319 --> 00:28:07,199 Suze: the upper arm of that, "K", how do you make 411 00:28:07,199 --> 00:28:10,479 Suze: sure that you always stay there? What is it? What 412 00:28:10,479 --> 00:28:12,780 Suze: is one thing that you can do 413 00:28:13,329 --> 00:28:16,430 Suze: to make it even more stable? 414 00:28:17,250 --> 00:28:21,420 Suze: So until Thursday when Ms. Travis will join us for 415 00:28:21,420 --> 00:28:25,369 Suze: another Ask KT and Suze Anything, two things I want you 416 00:28:25,369 --> 00:28:29,329 Suze: to check out. Go to Suzeorman.com. We have a brand 417 00:28:29,329 --> 00:28:32,909 Suze: new website that Ms. Travis designed for all of you. 418 00:28:33,290 --> 00:28:33,689 Suze: Check it out. 419 00:28:33,900 --> 00:28:36,849 Suze: It's not like that stupid old dull one that we 420 00:28:36,849 --> 00:28:40,369 Suze: had for all those years. This one kind of is dynamic. 421 00:28:40,489 --> 00:28:43,969 Suze: KT you did such a great job on that. Also, 422 00:28:44,050 --> 00:28:48,560 Suze: one other thing, go to youtube.com/ Suze Orman, my personal 423 00:28:48,560 --> 00:28:54,599 Suze: YouTube site, and subscribe because you never know when you 424 00:28:54,599 --> 00:28:57,329 Suze: might just get a little ding ding ding, and when 425 00:28:57,329 --> 00:29:00,020 Suze: you look at it, it will be because KT and 426 00:29:00,020 --> 00:29:02,369 Suze: I went live, all right. 427 00:29:02,810 --> 00:29:04,650 Suze: So there's only one thing that I really want you 428 00:29:04,650 --> 00:29:06,770 Suze: to remember when it comes to your money, and it 429 00:29:06,770 --> 00:29:13,560 Suze: is this, people first, then money, then things. Now you 430 00:29:13,569 --> 00:29:15,609 Suze: stay safe. Bye-bye.