1 00:00:01,960 --> 00:00:05,399 Speaker 1: Wind Down with Janet Kramer, an Imheart radio podcast. 2 00:00:06,600 --> 00:00:08,800 Speaker 2: He is the author of the New York Times bestseller 3 00:00:08,800 --> 00:00:10,520 Speaker 2: I Will Teach You to Be Rich, which has sold 4 00:00:10,520 --> 00:00:12,960 Speaker 2: over one million copies. He's been writing about money in 5 00:00:13,000 --> 00:00:16,360 Speaker 2: psychology for over twenty years. His podcast, I Will Teach 6 00:00:16,400 --> 00:00:18,919 Speaker 2: You to Be Rich features couples sharing real stories with 7 00:00:18,960 --> 00:00:21,560 Speaker 2: real numbers from behind closed doors. You can also find 8 00:00:21,600 --> 00:00:24,320 Speaker 2: him at www dot I Will Teach You to Be 9 00:00:24,480 --> 00:00:27,840 Speaker 2: Rich dot com. His book is again the New York 10 00:00:27,880 --> 00:00:30,840 Speaker 2: Times bestseller that taught a generation how to boost their income, 11 00:00:30,920 --> 00:00:33,680 Speaker 2: save money, and live a rich life, is now in 12 00:00:33,720 --> 00:00:37,479 Speaker 2: a revised second edition. He's a personal finance expert has 13 00:00:37,520 --> 00:00:40,159 Speaker 2: expanded his modern money classic for a new era with 14 00:00:40,280 --> 00:00:43,520 Speaker 2: a practical six week program designed to help readers develop 15 00:00:43,560 --> 00:00:46,960 Speaker 2: the skills and mindset necessary to manage their money effectively. 16 00:00:47,240 --> 00:00:50,240 Speaker 2: This updated edition is packed with new insights and strategies 17 00:00:50,280 --> 00:00:54,760 Speaker 2: for changing financial for a changing financial landscape. Start your 18 00:00:54,800 --> 00:00:59,080 Speaker 2: journey to a rich life today. Let's get a month. Hi. 19 00:00:59,560 --> 00:00:59,960 Speaker 1: How's it going. 20 00:01:01,080 --> 00:01:03,040 Speaker 2: I'm pretty good. How are you. 21 00:01:03,840 --> 00:01:04,759 Speaker 1: I'm good. I'm good. 22 00:01:05,360 --> 00:01:08,840 Speaker 2: Okay, I'm really excited to talk to you because I 23 00:01:09,520 --> 00:01:12,600 Speaker 2: come from a very I've mentioned this before on the podcast. 24 00:01:12,600 --> 00:01:15,840 Speaker 2: But I have such a scarcity mindset when it comes 25 00:01:15,840 --> 00:01:18,839 Speaker 2: to money, and I don't know if sometimes that actually 26 00:01:18,840 --> 00:01:21,000 Speaker 2: holds me back from making more money. 27 00:01:21,120 --> 00:01:24,720 Speaker 1: If that makes sense, I'm sure it does. Okay, we 28 00:01:24,760 --> 00:01:27,880 Speaker 1: can talk about it. That's very insightful, already, very perceptive. 29 00:01:28,040 --> 00:01:30,319 Speaker 2: Okay, well, good, good, good. 30 00:01:30,880 --> 00:01:31,160 Speaker 1: Yeah. No. 31 00:01:31,240 --> 00:01:35,360 Speaker 2: I grew up just a single mom and she you know, 32 00:01:35,400 --> 00:01:38,679 Speaker 2: I had to quit my favorite sport because my parents 33 00:01:38,680 --> 00:01:40,280 Speaker 2: got divorced and then couldn't afford it. And so in 34 00:01:40,319 --> 00:01:42,919 Speaker 2: my mind, I'm like, Okay, now that I have two kids, 35 00:01:42,959 --> 00:01:45,360 Speaker 2: one on the way, I'm like, I have to make 36 00:01:45,400 --> 00:01:48,040 Speaker 2: sure I don't spend anything and I and I have 37 00:01:48,080 --> 00:01:50,040 Speaker 2: to do a million different things because I have to 38 00:01:50,040 --> 00:01:51,520 Speaker 2: support them, and if I don't, then they have to 39 00:01:51,640 --> 00:01:54,120 Speaker 2: have to quit baseball or you know, soccer, and and 40 00:01:54,160 --> 00:01:55,720 Speaker 2: then I'm not what am I going to do? And 41 00:01:55,720 --> 00:01:57,000 Speaker 2: then where are they going to live? And then I 42 00:01:57,080 --> 00:02:00,440 Speaker 2: just start to like panic where I think I almost 43 00:02:00,640 --> 00:02:03,920 Speaker 2: overworking at times too, just because I'm throwing so many 44 00:02:04,040 --> 00:02:05,760 Speaker 2: darts trying to go, Okay, I need to make money, 45 00:02:05,800 --> 00:02:09,280 Speaker 2: I need to make money. And then I also I'm 46 00:02:09,320 --> 00:02:14,560 Speaker 2: not enjoying things too, like I bought myself my second 47 00:02:14,639 --> 00:02:19,080 Speaker 2: designer bag like two years ago. I will I will 48 00:02:19,080 --> 00:02:20,160 Speaker 2: not spend money. 49 00:02:22,440 --> 00:02:24,000 Speaker 1: On wine. 50 00:02:24,760 --> 00:02:26,280 Speaker 2: Then I will spend some money. 51 00:02:27,080 --> 00:02:30,399 Speaker 1: Why okay? Wine or kids? Right right? Kids again? My kids. 52 00:02:30,440 --> 00:02:33,519 Speaker 2: I'm like, oh, your soccer thing causes yeah, everything for 53 00:02:33,639 --> 00:02:34,080 Speaker 2: my kids. 54 00:02:34,160 --> 00:02:38,400 Speaker 1: Yeah, okay, so let's go. It's super common. Yeah, it's 55 00:02:38,639 --> 00:02:39,679 Speaker 1: we'll talk about it. It's good. 56 00:02:40,960 --> 00:02:43,480 Speaker 2: But yeah, So I mean, how I guess you know 57 00:02:44,000 --> 00:02:46,200 Speaker 2: your biggest teaching where you know I will teach you 58 00:02:46,240 --> 00:02:48,600 Speaker 2: to be rich is your book? And the second auditions 59 00:02:48,680 --> 00:02:51,639 Speaker 2: out what is the most common mistake that people make 60 00:02:51,800 --> 00:02:53,760 Speaker 2: in the efforts to becoming rich? 61 00:02:55,639 --> 00:02:58,160 Speaker 1: Well, the most common thing people do is they just 62 00:02:58,639 --> 00:03:00,160 Speaker 1: don't tackle their money at all. 63 00:03:00,919 --> 00:03:03,839 Speaker 2: They wu in which sense they don't. 64 00:03:03,560 --> 00:03:06,040 Speaker 1: Engage with their money. You know how many people will 65 00:03:06,040 --> 00:03:08,000 Speaker 1: reach out to me and they'll go, I'm forty years old, 66 00:03:08,040 --> 00:03:12,000 Speaker 1: i have two kids. I feel so behind with money. 67 00:03:12,280 --> 00:03:15,160 Speaker 1: I'm worried, and I go, okay, we can work with that. 68 00:03:17,320 --> 00:03:20,560 Speaker 1: When was the last time you read a single book 69 00:03:20,639 --> 00:03:24,919 Speaker 1: about money? And they're like, I don't read books about money, 70 00:03:25,760 --> 00:03:28,600 Speaker 1: And I'm like, okay, well that actually explains a lot. 71 00:03:29,160 --> 00:03:32,040 Speaker 1: Most of us. We glean the way that we treat 72 00:03:32,040 --> 00:03:35,000 Speaker 1: money just by absorbing it. It's what our mom and 73 00:03:35,120 --> 00:03:37,520 Speaker 1: dad said when we were growing up. Usually things like 74 00:03:37,680 --> 00:03:40,120 Speaker 1: we can't afford that, we don't talk about money in 75 00:03:40,120 --> 00:03:43,440 Speaker 1: our family. Money doesn't grow on trees. And then we 76 00:03:43,480 --> 00:03:45,760 Speaker 1: take that and we see our friends going around and 77 00:03:45,800 --> 00:03:48,040 Speaker 1: we go, how come there and bora bora on a Tuesday, 78 00:03:48,240 --> 00:03:52,240 Speaker 1: And I'm not. So we never actually learned the basics 79 00:03:52,360 --> 00:03:55,040 Speaker 1: of money. So that's the biggest mistake is we're going 80 00:03:55,040 --> 00:03:57,920 Speaker 1: through life agonizing over this thing that holds so much 81 00:03:57,960 --> 00:04:00,720 Speaker 1: control over us, and we never actually learn the basic 82 00:04:00,800 --> 00:04:01,400 Speaker 1: rules of it. 83 00:04:02,040 --> 00:04:06,320 Speaker 2: That's a really good point because anytime anytime my business 84 00:04:06,360 --> 00:04:08,760 Speaker 2: manager calls me, I get, I want to throw up, 85 00:04:08,800 --> 00:04:10,839 Speaker 2: I get. I'm just like, oh God, Kevin, I hate. 86 00:04:10,880 --> 00:04:12,600 Speaker 2: I hate when you call because he's always saying I 87 00:04:12,600 --> 00:04:14,520 Speaker 2: got to pay someone like my ex husband child supporter, 88 00:04:14,600 --> 00:04:16,680 Speaker 2: I gotta pay this, or I gotta pay you know 89 00:04:16,760 --> 00:04:19,680 Speaker 2: this this person, And I'm like, I just he's he's 90 00:04:19,880 --> 00:04:23,440 Speaker 2: my dwindling. Like every time he calls, I'm like, do 91 00:04:23,440 --> 00:04:25,440 Speaker 2: you ever have good news for me? Like, no, you never. 92 00:04:25,839 --> 00:04:27,760 Speaker 2: It's always like I gotta pay somebody, or I gotta 93 00:04:28,120 --> 00:04:30,320 Speaker 2: I gotta do this, or this person's trying to sue me. 94 00:04:30,400 --> 00:04:31,800 Speaker 2: Or I'm like, so I got to pay that lawyer 95 00:04:31,880 --> 00:04:32,400 Speaker 2: or whatever. 96 00:04:33,200 --> 00:04:37,279 Speaker 1: Can I just ask you, do you see paying money 97 00:04:37,480 --> 00:04:38,600 Speaker 1: as losing. 98 00:04:38,839 --> 00:04:39,880 Speaker 2: One million percent? 99 00:04:40,560 --> 00:04:41,200 Speaker 3: Uh? Huh? 100 00:04:41,360 --> 00:04:42,400 Speaker 1: You know, I don't see it like that. 101 00:04:42,800 --> 00:04:43,480 Speaker 2: How do you see it? 102 00:04:44,080 --> 00:04:46,240 Speaker 1: Think about when I go to a nice restaurant or 103 00:04:46,279 --> 00:04:48,800 Speaker 1: I love hotels. All right, I go to a nice hotel. 104 00:04:48,800 --> 00:04:54,080 Speaker 1: It's pretty expensive. I'm paying for the food or the experience. 105 00:04:54,920 --> 00:04:56,760 Speaker 1: Do you think I feel like I'm losing. 106 00:04:58,440 --> 00:04:59,800 Speaker 2: No, because you're enjoying yourself. 107 00:05:00,520 --> 00:05:02,800 Speaker 1: Yeah? Or what about you know I have people that 108 00:05:02,839 --> 00:05:05,880 Speaker 1: work for me. They're very talented. I pay them very well. 109 00:05:06,560 --> 00:05:08,440 Speaker 1: Am I losing when I pay them? 110 00:05:08,960 --> 00:05:11,000 Speaker 2: No? Because they're helping invest in your company? 111 00:05:11,360 --> 00:05:14,680 Speaker 1: All right? So's there's just you and I could be 112 00:05:14,720 --> 00:05:17,800 Speaker 1: paying the same amount to the same person, but we 113 00:05:17,920 --> 00:05:21,000 Speaker 1: might see it totally differently. And that's really at the 114 00:05:21,000 --> 00:05:23,000 Speaker 1: core of how we treat money. Most of us believe 115 00:05:23,040 --> 00:05:25,320 Speaker 1: money is just about some numbers on a spreadsheet, some 116 00:05:25,480 --> 00:05:28,880 Speaker 1: boring drudgery. I don't see it that way at all. 117 00:05:28,920 --> 00:05:32,839 Speaker 1: I look at somebody, I say, wow, you see a spreadsheet. 118 00:05:33,200 --> 00:05:35,839 Speaker 1: I see a trip to Disney World with your kids. 119 00:05:36,160 --> 00:05:38,840 Speaker 1: I see a beautiful handbag that you love every time 120 00:05:38,920 --> 00:05:41,000 Speaker 1: you pick it up. You know, I see the freedom 121 00:05:41,080 --> 00:05:44,159 Speaker 1: to maybe play with your kids on a weekday afternoon, 122 00:05:45,640 --> 00:05:47,920 Speaker 1: we can see it totally differently. That's because money is 123 00:05:47,960 --> 00:05:50,080 Speaker 1: not just about the numbers. It's also about how we feel, 124 00:05:50,080 --> 00:05:51,840 Speaker 1: and it's about our psychology towards it. 125 00:05:52,040 --> 00:05:54,359 Speaker 2: And why is it so? Because whenever I get my 126 00:05:54,520 --> 00:05:59,120 Speaker 2: monthly statement, if it's not the certain number that I like, 127 00:05:59,640 --> 00:06:03,720 Speaker 2: then I will be in the most depressed state. And 128 00:06:03,760 --> 00:06:06,360 Speaker 2: then I'm just like, we're eating frozen tiketos for the 129 00:06:06,400 --> 00:06:07,000 Speaker 2: rest of the week. 130 00:06:07,279 --> 00:06:09,599 Speaker 1: Let's just say for easy math, it's one hundred thousand. 131 00:06:09,640 --> 00:06:12,359 Speaker 1: If you see the number below that you start to 132 00:06:13,200 --> 00:06:15,640 Speaker 1: how did you describe it? Spin, Yeah, I just. 133 00:06:15,640 --> 00:06:21,000 Speaker 2: Get really depressed. And then I'm just like, I bring 134 00:06:21,040 --> 00:06:22,800 Speaker 2: things closer, like okay, we got to tighten up here. 135 00:06:22,839 --> 00:06:25,280 Speaker 2: I can't spend here or and then I just start 136 00:06:25,320 --> 00:06:27,080 Speaker 2: to feel like my throat's closing up. 137 00:06:27,120 --> 00:06:31,080 Speaker 1: And all right. I love the honesty. This is so common, 138 00:06:31,240 --> 00:06:34,480 Speaker 1: it's so calm, and it's not just you can I 139 00:06:34,520 --> 00:06:38,520 Speaker 1: ask a question, where did you come up with that number? 140 00:06:38,640 --> 00:06:40,200 Speaker 1: And what does it mean to you? 141 00:06:41,520 --> 00:06:44,080 Speaker 2: I guess if that number was to be lower, it 142 00:06:44,120 --> 00:06:47,440 Speaker 2: would mean that I'm not successful, that I failed. 143 00:06:47,920 --> 00:06:52,279 Speaker 1: Where did that come from? Is it in the dictionary 144 00:06:52,320 --> 00:06:55,760 Speaker 1: that under successful anything less than one hundred thousand means 145 00:06:55,760 --> 00:06:59,760 Speaker 1: you're not successful? No? Where did it come from? Though? 146 00:07:00,040 --> 00:07:05,040 Speaker 2: Then I guess myself or I guess the oh people 147 00:07:05,120 --> 00:07:08,440 Speaker 2: are right, I'm I'm a failing this, or I'm no 148 00:07:08,520 --> 00:07:10,520 Speaker 2: longer al us this, sir. 149 00:07:11,720 --> 00:07:17,160 Speaker 1: Yeah, I ask because a lot of times we all 150 00:07:17,160 --> 00:07:20,000 Speaker 1: have a feeling about our money, and a lot of 151 00:07:20,040 --> 00:07:23,440 Speaker 1: us believe if I just get five thousand dollars more 152 00:07:24,120 --> 00:07:28,080 Speaker 1: dollars five hundred thousand, finally I can relax. Finally I 153 00:07:28,120 --> 00:07:30,120 Speaker 1: won't worry right any of those things? 154 00:07:30,120 --> 00:07:30,360 Speaker 3: Ever? 155 00:07:30,480 --> 00:07:31,720 Speaker 1: Have you ever said any of those things? 156 00:07:32,000 --> 00:07:33,200 Speaker 2: One million percent? 157 00:07:34,280 --> 00:07:37,240 Speaker 1: And the truth is that the way you feel about 158 00:07:37,280 --> 00:07:41,560 Speaker 1: money is highly uncorrelated to how much you have in 159 00:07:41,600 --> 00:07:44,480 Speaker 1: the bank. I'll say it again because I want everybody 160 00:07:44,520 --> 00:07:46,880 Speaker 1: to make sure they get this. The way you feel 161 00:07:46,960 --> 00:07:51,360 Speaker 1: about money is extremely uncorrelated to how much you have 162 00:07:51,440 --> 00:07:54,200 Speaker 1: in the bank. So I've talked to couples on my podcast, 163 00:07:54,560 --> 00:07:57,600 Speaker 1: they come on, they share all their financials, and on 164 00:07:57,640 --> 00:08:03,920 Speaker 1: my Netflix show, and some of them have thirteen million 165 00:08:04,000 --> 00:08:07,040 Speaker 1: dollars in net worth and they are agonizing over the 166 00:08:07,080 --> 00:08:08,280 Speaker 1: price of a mattress. 167 00:08:08,400 --> 00:08:10,800 Speaker 2: Oh my god, I would be like I've made it, 168 00:08:11,000 --> 00:08:13,520 Speaker 2: like I have you, I wouldn't. I feel like I 169 00:08:13,520 --> 00:08:15,800 Speaker 2: would be the least stress for human in the world. 170 00:08:16,160 --> 00:08:18,600 Speaker 1: Oh really, So are you telling me that at a 171 00:08:18,600 --> 00:08:20,679 Speaker 1: certain number you stop worrying about money? 172 00:08:20,840 --> 00:08:21,200 Speaker 2: I think so? 173 00:08:21,440 --> 00:08:22,960 Speaker 1: Did you hear what I just said for the last 174 00:08:22,960 --> 00:08:23,440 Speaker 1: two minutes? 175 00:08:23,560 --> 00:08:24,880 Speaker 2: I know, I know, I know, I know. 176 00:08:24,920 --> 00:08:28,600 Speaker 1: If you don't feel good about money today, you're not 177 00:08:28,680 --> 00:08:30,760 Speaker 1: going to feel good about it when you have double 178 00:08:30,800 --> 00:08:33,120 Speaker 1: or triple the money. Here's why, in order to deliver 179 00:08:33,120 --> 00:08:34,959 Speaker 1: a rich life, you've got to do two things. Number one, 180 00:08:35,000 --> 00:08:38,119 Speaker 1: you got to know your numbers cold, and I suspect 181 00:08:38,800 --> 00:08:41,760 Speaker 1: that when you see this number on the page and 182 00:08:41,800 --> 00:08:45,560 Speaker 1: you're paying out all this stuff, you're just looking at 183 00:08:45,600 --> 00:08:48,000 Speaker 1: what's given to you, and you maybe don't have a 184 00:08:48,040 --> 00:08:50,760 Speaker 1: holistic view of what's your net worth, how much is 185 00:08:50,760 --> 00:08:52,240 Speaker 1: it going to compound to how much you're going to 186 00:08:52,320 --> 00:08:53,880 Speaker 1: have in five years, all that stuff, so you're just 187 00:08:53,920 --> 00:08:57,600 Speaker 1: looking at these tiny little details. The second thing is 188 00:08:57,640 --> 00:09:01,320 Speaker 1: that you've also got to work on your money psychology. 189 00:09:01,360 --> 00:09:03,560 Speaker 1: We all do, which is, you know, some of us 190 00:09:03,600 --> 00:09:08,080 Speaker 1: feel scarcity. Some of us are overspenders, but we rarely 191 00:09:08,120 --> 00:09:10,280 Speaker 1: actually work on that at all. We just tell ourselves 192 00:09:10,320 --> 00:09:13,960 Speaker 1: if I make more money, I'll feel good. And I 193 00:09:14,040 --> 00:09:17,200 Speaker 1: hate to tell people that just changing the numbers is 194 00:09:17,240 --> 00:09:18,320 Speaker 1: not going to change your feeling. 195 00:09:20,760 --> 00:09:21,400 Speaker 2: So what do I do? 196 00:09:23,040 --> 00:09:25,640 Speaker 1: Well, let's let's start. Let's take them each one by one. 197 00:09:25,679 --> 00:09:28,880 Speaker 1: Let's start with the numbers. When you look at the numbers, 198 00:09:29,520 --> 00:09:32,120 Speaker 1: you're seeing what how much is in your checking account? 199 00:09:32,200 --> 00:09:37,359 Speaker 2: I see checking touring account, I see my investment accounts. 200 00:09:38,160 --> 00:09:39,839 Speaker 2: Those ones scare me all the time because I'm like, 201 00:09:39,840 --> 00:09:42,360 Speaker 2: oh my god, I lost this much on that, which 202 00:09:42,360 --> 00:09:44,880 Speaker 2: I know it's the long game with those, but it's 203 00:09:44,920 --> 00:09:49,160 Speaker 2: still but I always go to the total. And then 204 00:09:49,200 --> 00:09:51,880 Speaker 2: that's where I call my business manager every month, going 205 00:09:51,920 --> 00:09:53,560 Speaker 2: wait a minute, why did I not make any money 206 00:09:53,559 --> 00:09:55,040 Speaker 2: that month? And he's like, well no, He's like, you 207 00:09:55,120 --> 00:09:58,160 Speaker 2: lost in the investments and so that then and I'm like, well, 208 00:09:58,600 --> 00:10:01,320 Speaker 2: so then that's just starts to spiral me too. But 209 00:10:01,320 --> 00:10:03,880 Speaker 2: then if I what I, then this is how psycho am. 210 00:10:04,000 --> 00:10:06,720 Speaker 2: I then go back to six months or a year 211 00:10:06,720 --> 00:10:09,200 Speaker 2: ago and go, okay, it has gone up. So I 212 00:10:09,200 --> 00:10:11,600 Speaker 2: have to like I have to see the comparison like 213 00:10:12,200 --> 00:10:13,840 Speaker 2: the previous and then where it's at. 214 00:10:14,240 --> 00:10:15,800 Speaker 1: Wait, I don't think you're psycho for doing that. I 215 00:10:15,800 --> 00:10:17,080 Speaker 1: think you're really smart for doing that. 216 00:10:17,520 --> 00:10:18,960 Speaker 2: Okay, thanks, it's smart. 217 00:10:19,080 --> 00:10:23,079 Speaker 1: You're trending it out. You're seeing, you're taking a look 218 00:10:23,120 --> 00:10:26,280 Speaker 1: at where you are today, and you're saying, Okay, that's interesting, 219 00:10:26,360 --> 00:10:29,480 Speaker 1: that's a snapshot of today. But I really want to 220 00:10:29,559 --> 00:10:33,000 Speaker 1: understand what's happened over the last year. Yeah, to understand 221 00:10:33,000 --> 00:10:34,600 Speaker 1: what it looks like. I think that's really smart. 222 00:10:34,840 --> 00:10:37,240 Speaker 2: Okay, Well, because that helps me not freak out as much. 223 00:10:38,000 --> 00:10:49,440 Speaker 3: Yeah. 224 00:10:50,679 --> 00:10:52,920 Speaker 1: Can I ask you a question about your investments and 225 00:10:52,920 --> 00:10:54,719 Speaker 1: all that? Do you think it's possible for you to 226 00:10:54,760 --> 00:10:56,240 Speaker 1: feel good about your money? 227 00:10:56,679 --> 00:10:57,199 Speaker 2: What do you mean? 228 00:11:01,040 --> 00:11:05,040 Speaker 1: I think you kind of just answered my question, like, okay, 229 00:11:05,160 --> 00:11:07,600 Speaker 1: Like take me for example, Okay, okay, do you think 230 00:11:07,600 --> 00:11:10,520 Speaker 1: that I'm freaking out about my money? 231 00:11:10,760 --> 00:11:10,840 Speaker 3: No? 232 00:11:10,960 --> 00:11:13,440 Speaker 2: Because this is your job. This is what you do. 233 00:11:13,600 --> 00:11:16,120 Speaker 2: Like you are at the like you help people become rich. 234 00:11:16,200 --> 00:11:20,920 Speaker 2: I think with my industry in my life, it's like 235 00:11:21,080 --> 00:11:25,679 Speaker 2: I I look at it as the most unstable business ever. Yeah, 236 00:11:25,720 --> 00:11:27,400 Speaker 2: and where it's I feel like with you, it's like, oh, 237 00:11:27,440 --> 00:11:29,559 Speaker 2: he could be building I'm sure you've got courses and 238 00:11:29,600 --> 00:11:31,360 Speaker 2: you've got your Netflix show and you've got books, and 239 00:11:31,360 --> 00:11:35,040 Speaker 2: it's like that's people will always want to know how 240 00:11:35,080 --> 00:11:37,200 Speaker 2: to be rich. People are going to get people are 241 00:11:37,400 --> 00:11:40,120 Speaker 2: and will continue to get bored of me. It's kind 242 00:11:40,160 --> 00:11:42,240 Speaker 2: of like my mindset. 243 00:11:41,720 --> 00:11:44,360 Speaker 1: What you're like, you're pretty big. I mean, come on, 244 00:11:44,440 --> 00:11:47,120 Speaker 1: I did my homework. It's not like you're just starting out. 245 00:11:47,240 --> 00:11:49,280 Speaker 1: Your people want to listen to you. 246 00:11:49,440 --> 00:11:50,920 Speaker 2: But I'm like, there will be a day when I'm 247 00:11:50,920 --> 00:11:53,280 Speaker 2: not going to be the you know, number one on 248 00:11:53,400 --> 00:11:56,080 Speaker 2: this movie. I'll be the old lady that's, you know, 249 00:11:56,240 --> 00:11:58,360 Speaker 2: the grandmother of the you know. So it's like I 250 00:11:58,400 --> 00:12:01,280 Speaker 2: have to be so smart right now because my window 251 00:12:01,440 --> 00:12:06,080 Speaker 2: is like you know, is closing in certain areas of 252 00:12:06,080 --> 00:12:08,439 Speaker 2: my life. So I'm like, I always have to recreate 253 00:12:08,440 --> 00:12:11,640 Speaker 2: and be Okay, what's going to be like my my 254 00:12:11,640 --> 00:12:14,960 Speaker 2: my generator of money because I acting doesn't pay enough. 255 00:12:15,000 --> 00:12:15,439 Speaker 3: This is it. 256 00:12:15,520 --> 00:12:18,400 Speaker 2: So it's like I just need it for what I 257 00:12:18,440 --> 00:12:20,719 Speaker 2: have been accustomed to, right So I just am like 258 00:12:20,760 --> 00:12:22,760 Speaker 2: I have to find that thing and it's hard when 259 00:12:22,800 --> 00:12:27,360 Speaker 2: it's like there's so many different pieces. 260 00:12:27,880 --> 00:12:31,520 Speaker 1: Yeah, makes a lot of sense. Do you have a 261 00:12:31,559 --> 00:12:34,000 Speaker 1: sense for how much you need. 262 00:12:36,160 --> 00:12:39,560 Speaker 2: Yes, here's where the wrench goes in. I bought at 263 00:12:39,559 --> 00:12:40,240 Speaker 2: the wrong time. 264 00:12:41,160 --> 00:12:42,000 Speaker 1: My house a house. 265 00:12:43,960 --> 00:12:47,960 Speaker 2: My house is done being built in September. But I 266 00:12:48,000 --> 00:12:49,600 Speaker 2: sold my house at the wrong time and I bought 267 00:12:49,600 --> 00:12:52,200 Speaker 2: at the wrong time. So that was a little bit 268 00:12:52,240 --> 00:12:55,000 Speaker 2: of a hit interest rates. I know they're going to 269 00:12:55,040 --> 00:12:57,280 Speaker 2: go back down, but when you know, I got the 270 00:12:57,280 --> 00:12:59,080 Speaker 2: call of how much I'm paying a month, it's like 271 00:13:00,200 --> 00:13:02,680 Speaker 2: I'm getting a minivan, Like, Okay, where am I going 272 00:13:02,760 --> 00:13:05,280 Speaker 2: to start cutting, you know, because I gotta cut. This 273 00:13:05,360 --> 00:13:07,080 Speaker 2: is way more than I'm used to paying. So I 274 00:13:07,080 --> 00:13:10,120 Speaker 2: think that's where I start to freak out a little bit. 275 00:13:11,800 --> 00:13:13,920 Speaker 2: And then just the load that I carry, like I 276 00:13:13,960 --> 00:13:16,920 Speaker 2: support my kids, I pay, I'm paying the child support, 277 00:13:17,000 --> 00:13:19,959 Speaker 2: like it's a lot of I was telling my fans 278 00:13:19,960 --> 00:13:22,880 Speaker 2: the other day, I'm like, I have so much pressure 279 00:13:23,440 --> 00:13:27,360 Speaker 2: to succeed and to provide that I'm like it can 280 00:13:27,440 --> 00:13:29,120 Speaker 2: make me cry, like I'm and at the time, I 281 00:13:29,200 --> 00:13:32,440 Speaker 2: was like, you know, I've always felt the pressure to 282 00:13:32,559 --> 00:13:35,640 Speaker 2: financially provide, and I'm freking exhausted. 283 00:13:36,400 --> 00:13:41,920 Speaker 1: Yeah, I hate hearing that. I hate it because it 284 00:13:42,040 --> 00:13:44,600 Speaker 1: sounds like money is not a source of joy at all. 285 00:13:44,960 --> 00:13:47,840 Speaker 1: It sounds like it's a burden, it's an obligation, and 286 00:13:48,000 --> 00:13:51,320 Speaker 1: worst of all, it's kind of just this murky cloud 287 00:13:51,360 --> 00:13:57,160 Speaker 1: where you don't even know where's the light. It's just depressing. Yeah, 288 00:13:57,200 --> 00:13:58,079 Speaker 1: am I reading that right? 289 00:13:58,160 --> 00:13:58,680 Speaker 2: Pretty much? 290 00:13:59,520 --> 00:14:02,120 Speaker 1: All right, we'll shoot like should we just change that? 291 00:14:02,160 --> 00:14:03,480 Speaker 1: Because this is depressing to me? 292 00:14:06,200 --> 00:14:08,200 Speaker 2: And I want to say too, like I'm so grateful 293 00:14:08,360 --> 00:14:12,199 Speaker 2: for everything, Like I know that I have a beautiful 294 00:14:12,200 --> 00:14:15,800 Speaker 2: home and a beautiful life that I've created, but I 295 00:14:15,840 --> 00:14:18,760 Speaker 2: also feel like I'm still the girl stuck in you know, 296 00:14:19,120 --> 00:14:22,080 Speaker 2: like I'm stealing toilet paper from a restaurant because I 297 00:14:22,080 --> 00:14:24,120 Speaker 2: can't afford or I'm seeing the red that I moved 298 00:14:24,120 --> 00:14:26,560 Speaker 2: to Los Angeles, you know, trying to book a show. 299 00:14:26,640 --> 00:14:30,640 Speaker 2: So I want to say, I realize how grateful that 300 00:14:30,720 --> 00:14:35,960 Speaker 2: I am compared to people that may not have that income. 301 00:14:36,040 --> 00:14:38,280 Speaker 2: So that's where I that's where I struggle with the 302 00:14:38,760 --> 00:14:42,680 Speaker 2: battle of of of that, because I don't want people 303 00:14:42,680 --> 00:14:44,280 Speaker 2: to think I'm not grateful for what I have, because 304 00:14:44,280 --> 00:14:48,600 Speaker 2: I'm very grateful. That makes sense, Yeah, it does, Okay. 305 00:14:49,560 --> 00:14:54,760 Speaker 1: I grew up with two immigrant parents. They came here 306 00:14:54,760 --> 00:14:58,960 Speaker 1: from India and they we had a great childhood. They 307 00:14:59,440 --> 00:15:02,200 Speaker 1: were a pretty family, and they had to be frugal 308 00:15:02,320 --> 00:15:03,880 Speaker 1: just because that's what they knew and that's what we 309 00:15:03,920 --> 00:15:05,520 Speaker 1: had to do. My dad worked, my mom was home 310 00:15:05,560 --> 00:15:09,600 Speaker 1: with us, and I think the lessons we learned were 311 00:15:09,640 --> 00:15:12,120 Speaker 1: really valuable in terms of we don't need a lot 312 00:15:12,160 --> 00:15:15,720 Speaker 1: of fancy stuff to have a happy family. Our vacations 313 00:15:15,720 --> 00:15:17,960 Speaker 1: when we took them were quite modest. You know, We're 314 00:15:18,000 --> 00:15:21,000 Speaker 1: get in a minivan and drive down California, stay with 315 00:15:21,040 --> 00:15:24,720 Speaker 1: our family. But I also think that as I went 316 00:15:24,760 --> 00:15:28,400 Speaker 1: to college and became more successful with my business and 317 00:15:28,480 --> 00:15:32,800 Speaker 1: all that stuff, I leaned on what I learned as 318 00:15:32,800 --> 00:15:35,840 Speaker 1: a kid, but I also had to create some new 319 00:15:35,920 --> 00:15:39,640 Speaker 1: routines and new ways of thinking about money. And I 320 00:15:39,720 --> 00:15:42,080 Speaker 1: bet if we spent more time, for example, on my 321 00:15:42,160 --> 00:15:44,880 Speaker 1: podcast with the couples that I bring on, we would 322 00:15:44,920 --> 00:15:48,280 Speaker 1: dive more into what do you remember about growing up 323 00:15:48,520 --> 00:15:50,760 Speaker 1: with your parents? What kind of phrases did they say? 324 00:15:50,880 --> 00:15:52,880 Speaker 1: How does it still affect you. I mean, we can 325 00:15:52,920 --> 00:15:55,800 Speaker 1: hear a couple like the word freaking out. That's an 326 00:15:55,800 --> 00:15:58,600 Speaker 1: interesting word. I want to know more about that. But 327 00:15:58,640 --> 00:16:02,440 Speaker 1: I also think you became so success that there's probably 328 00:16:02,520 --> 00:16:06,120 Speaker 1: some new layers for you to put on, almost like 329 00:16:06,160 --> 00:16:09,000 Speaker 1: a new layer of a coat to put on, which 330 00:16:09,040 --> 00:16:11,840 Speaker 1: is just acknowledging, Hey, I'm actually pretty good at this. 331 00:16:12,360 --> 00:16:16,000 Speaker 1: I'm pretty successful. I actually can take on a bigger 332 00:16:16,000 --> 00:16:17,440 Speaker 1: burden than I used to do when I was a 333 00:16:17,440 --> 00:16:20,960 Speaker 1: little girl, And I think that would just allow you 334 00:16:21,640 --> 00:16:24,920 Speaker 1: to feel stronger. Which is my belief is I never 335 00:16:24,960 --> 00:16:28,120 Speaker 1: tell people stop being emotional about money. Money is emotional. 336 00:16:28,440 --> 00:16:31,440 Speaker 1: I'm emotional about it. We're all emotional about it. I 337 00:16:31,440 --> 00:16:35,800 Speaker 1: would rather we stay emotional, but also learn how to 338 00:16:35,880 --> 00:16:39,600 Speaker 1: read the numbers and talk about the basic rules of money, 339 00:16:40,560 --> 00:16:43,000 Speaker 1: and then we work on feeling the way we want 340 00:16:43,000 --> 00:16:45,560 Speaker 1: to feel. Sometimes we're going to feel bad, that's okay, 341 00:16:45,920 --> 00:16:48,000 Speaker 1: But I would say most of the time I want 342 00:16:48,000 --> 00:16:50,240 Speaker 1: people to feel good about money, Like ninety percent of 343 00:16:50,280 --> 00:16:52,280 Speaker 1: the time, I think we should feel good. Even if 344 00:16:52,280 --> 00:16:55,760 Speaker 1: we have seventy five thousand dollars of debt, we can 345 00:16:55,800 --> 00:16:57,600 Speaker 1: still feel good because we have a plan in place, 346 00:16:57,640 --> 00:16:59,400 Speaker 1: and we know the exact month and year that debt's 347 00:16:59,400 --> 00:17:02,160 Speaker 1: going to be paid off. If you were able to 348 00:17:02,200 --> 00:17:05,320 Speaker 1: do that, what do you think if you knew when 349 00:17:05,359 --> 00:17:07,720 Speaker 1: you would have let's say five hundred thousand or a 350 00:17:07,760 --> 00:17:09,600 Speaker 1: million or ten MILLI or whatever the number is for you, 351 00:17:10,000 --> 00:17:13,520 Speaker 1: if you knew that your kids would be able to have, yeah, 352 00:17:13,560 --> 00:17:15,560 Speaker 1: all the things they need taking care of. Do you 353 00:17:15,600 --> 00:17:17,320 Speaker 1: think your feelings might change? Yeah? 354 00:17:17,320 --> 00:17:19,480 Speaker 2: And that's what I told I was talking to my 355 00:17:19,560 --> 00:17:21,480 Speaker 2: acting manager. I was like, listen, because a lot of 356 00:17:21,600 --> 00:17:24,000 Speaker 2: actors don't want to be on a procedural because it's 357 00:17:24,080 --> 00:17:29,200 Speaker 2: not creative enough. And you know those shows run for ten, 358 00:17:29,480 --> 00:17:32,000 Speaker 2: you know, eight ten years, and it's just the same thing. 359 00:17:32,040 --> 00:17:34,720 Speaker 2: I go, that is my dream job because I would 360 00:17:34,720 --> 00:17:39,040 Speaker 2: be doing something that I love to do, and I 361 00:17:39,160 --> 00:17:42,760 Speaker 2: know that I'm going to have a role for potentially 362 00:17:42,800 --> 00:17:45,520 Speaker 2: eight to ten years, a paycheck that I know is 363 00:17:45,560 --> 00:17:47,840 Speaker 2: going to come every single month. I think it's the 364 00:17:48,000 --> 00:17:51,440 Speaker 2: not knowing is the part where I start to freak out. 365 00:17:51,480 --> 00:17:53,440 Speaker 2: And it hasn't been a you know, a great year, 366 00:17:53,480 --> 00:17:57,280 Speaker 2: and there have been more you know, losses than wins 367 00:17:57,320 --> 00:17:59,080 Speaker 2: this year, and so I think when I have that 368 00:17:59,320 --> 00:18:04,080 Speaker 2: burden to it becomes stressful. And you know, if I 369 00:18:04,160 --> 00:18:06,040 Speaker 2: had something in my mind where I was like, Okay, 370 00:18:06,080 --> 00:18:08,560 Speaker 2: I know I'm gonna make this, like I would be 371 00:18:08,600 --> 00:18:10,080 Speaker 2: able to breathe a little bit better. 372 00:18:10,880 --> 00:18:13,480 Speaker 1: I totally get it. The Uncertainty is a killer, like 373 00:18:13,600 --> 00:18:17,280 Speaker 1: in anything, uncertainty in a relationship, uncertainty with money or jobs. 374 00:18:18,080 --> 00:18:20,720 Speaker 1: Let me let me provide a couple of I think 375 00:18:20,720 --> 00:18:24,040 Speaker 1: helpful numbers that might be useful to you. Okay, So, 376 00:18:25,000 --> 00:18:26,800 Speaker 1: first of all, I'm not a fan of budgets, and 377 00:18:26,840 --> 00:18:28,719 Speaker 1: I certainly don't I'm not going to get on here 378 00:18:28,720 --> 00:18:30,600 Speaker 1: and tell people, you know, stop spending so much money 379 00:18:30,640 --> 00:18:32,840 Speaker 1: on potatoes, Like, I don't care about that. It's a 380 00:18:32,880 --> 00:18:36,399 Speaker 1: waste of time. And I would rather people ask thirty 381 00:18:36,440 --> 00:18:39,040 Speaker 1: thousand dollar questions than three dollar questions. 382 00:18:39,320 --> 00:18:41,680 Speaker 2: Although eggs are very expensive right now. 383 00:18:42,240 --> 00:18:44,760 Speaker 1: I don't care about the price of eggs, and really. 384 00:18:45,240 --> 00:18:47,320 Speaker 2: Like, Janna, you're so cheap. I'm like, no, we're getting chickens. 385 00:18:47,320 --> 00:18:49,080 Speaker 2: These eggs are way too expensive. He's like, you can 386 00:18:49,160 --> 00:18:52,040 Speaker 2: afford eggs. I'm like, I know it, just like I get. 387 00:18:51,880 --> 00:18:56,880 Speaker 1: On, no, Janna, listen, listen my mouth. Stop asking three 388 00:18:56,920 --> 00:19:03,920 Speaker 1: dollars questions thirty thousand dollar questions. Okay, all right, all right, 389 00:19:04,240 --> 00:19:06,480 Speaker 1: So you know a lot of us we've been taught, 390 00:19:06,520 --> 00:19:09,000 Speaker 1: it's been drilled into us. Don't buy coffee, don't buy 391 00:19:09,000 --> 00:19:10,280 Speaker 1: a lot of tes, blah blah blah. 392 00:19:10,359 --> 00:19:12,959 Speaker 2: Yeah, you'll say these this made dollars thousand dollars a year. 393 00:19:12,960 --> 00:19:13,520 Speaker 2: If you don't buy a. 394 00:19:13,720 --> 00:19:16,600 Speaker 1: Nine hundred years, you're living in a cave, you're a skeleton, 395 00:19:16,680 --> 00:19:20,119 Speaker 1: and you'll have one million dollars. I go that life sucks. 396 00:19:21,040 --> 00:19:25,200 Speaker 1: So I believe in asking some five to ten big questions. 397 00:19:25,280 --> 00:19:27,120 Speaker 1: All right, and those are the ones. You get those right, 398 00:19:27,160 --> 00:19:29,440 Speaker 1: You could buy all the coffee and cheesecake you want. 399 00:19:30,000 --> 00:19:32,720 Speaker 1: So first off, just we need to know four numbers 400 00:19:32,880 --> 00:19:35,119 Speaker 1: when it comes to our own basic numbers, right, Almost 401 00:19:35,200 --> 00:19:40,080 Speaker 1: nobody knows this. First off, fixed costs. I would recommend 402 00:19:40,080 --> 00:19:43,240 Speaker 1: that your fixed cost be between fifty to sixty percent 403 00:19:43,440 --> 00:19:46,680 Speaker 1: of your take home pay. Let me explain what I mean. 404 00:19:46,840 --> 00:19:48,200 Speaker 2: What is a fixed cost? 405 00:19:48,600 --> 00:19:52,840 Speaker 1: Fixed costs includes your rent or your mortgage, your utilities, 406 00:19:53,359 --> 00:19:57,640 Speaker 1: your car payment, your groceries, your debt payment, anything that's 407 00:19:57,680 --> 00:20:02,439 Speaker 1: fixed that you're paying every single month. Okay, kids, school fees, all. 408 00:20:02,320 --> 00:20:05,080 Speaker 2: That fifty to sixty percent fixed cost. 409 00:20:05,240 --> 00:20:06,760 Speaker 1: Of your take home pay. 410 00:20:06,840 --> 00:20:11,320 Speaker 2: That's after your take I'm taking notes home pay. Okay, cool, all. 411 00:20:11,280 --> 00:20:14,040 Speaker 1: Right, so that's fifty to sixty percent. I'm just gonna 412 00:20:14,040 --> 00:20:16,640 Speaker 1: tell you right now, people go wrong in two areas, 413 00:20:17,080 --> 00:20:20,360 Speaker 1: and it is their house and their car. That's that's it. 414 00:20:20,560 --> 00:20:22,080 Speaker 1: They spend too much on their house, they spend too 415 00:20:22,160 --> 00:20:23,439 Speaker 1: much on their car. We could talk about that if 416 00:20:23,480 --> 00:20:29,239 Speaker 1: you want to. Next up your investments, okay, five to 417 00:20:29,280 --> 00:20:31,520 Speaker 1: ten percent of take home Of course I want to 418 00:20:31,560 --> 00:20:35,280 Speaker 1: see that number higher. But this is where the real 419 00:20:35,320 --> 00:20:38,120 Speaker 1: wealth is created. Okay, you know how many people spend 420 00:20:38,160 --> 00:20:40,439 Speaker 1: their entire lives tracking the price of turnips. I go, 421 00:20:40,560 --> 00:20:43,879 Speaker 1: who gives a shit, It doesn't matter. Stop talking about this. 422 00:20:43,920 --> 00:20:45,600 Speaker 1: You don't even need to track it at all. But 423 00:20:45,760 --> 00:20:47,440 Speaker 1: you do need to make sure that you are hitting 424 00:20:47,560 --> 00:20:55,000 Speaker 1: your ten or fifteen percent investments that will create massive wealth. Okay, 425 00:20:55,080 --> 00:20:58,560 Speaker 1: it's more important than any coffee decision you make commutatively, 426 00:20:58,880 --> 00:21:00,440 Speaker 1: cumulatively over your life. 427 00:21:00,600 --> 00:21:00,960 Speaker 3: All right. 428 00:21:00,960 --> 00:21:04,800 Speaker 1: Next up your savings, five to ten percent. This is 429 00:21:04,840 --> 00:21:08,440 Speaker 1: things like an emergency fund, saving for a down payment, 430 00:21:08,920 --> 00:21:11,159 Speaker 1: saving for a new car, that kind of stuff, all right. 431 00:21:11,720 --> 00:21:14,840 Speaker 1: And then finally, this is my favorite one, guilt free 432 00:21:14,840 --> 00:21:19,600 Speaker 1: spending twenty to thirty five percent of your take home pay. 433 00:21:19,960 --> 00:21:23,600 Speaker 1: That's a lot, Yeah, it's a lot of money. 434 00:21:23,359 --> 00:21:26,080 Speaker 2: Right, Why not save it? Why wouldn't you say save that? 435 00:21:27,800 --> 00:21:29,640 Speaker 1: Well, why don't you tell me when was the last 436 00:21:29,640 --> 00:21:30,600 Speaker 1: time you ate out. 437 00:21:31,000 --> 00:21:34,520 Speaker 2: Well, i'm pregnant, sister sick. But no, I mean I 438 00:21:34,640 --> 00:21:37,439 Speaker 2: door dashed some wings yesterday. 439 00:21:37,240 --> 00:21:39,920 Speaker 1: Thank you very much. Why don't you just make those 440 00:21:39,960 --> 00:21:42,159 Speaker 1: wings at home? It's because we want to live a 441 00:21:42,280 --> 00:21:46,160 Speaker 1: rich life today and a richer life tomorrow. Now, if 442 00:21:46,160 --> 00:21:49,160 Speaker 1: you were super disciplined, for example, and you go, hey, 443 00:21:49,200 --> 00:21:52,399 Speaker 1: I want to retire at whatever age, early age, you 444 00:21:52,520 --> 00:21:54,800 Speaker 1: might say instead of twenty percent, I'm gonna do fifteen 445 00:21:54,800 --> 00:21:56,720 Speaker 1: percent guiltfree, I'm gonna take the extra five percent and 446 00:21:56,800 --> 00:21:59,680 Speaker 1: invest it. Fine, I don't mind it. But you know, 447 00:22:00,000 --> 00:22:02,000 Speaker 1: these people, they actually want to spend money on the 448 00:22:02,000 --> 00:22:03,640 Speaker 1: things they love. I know you do. I do too, 449 00:22:04,359 --> 00:22:07,359 Speaker 1: But it's all within a plan. And if you just 450 00:22:07,800 --> 00:22:11,199 Speaker 1: do those four numbers, just those four you never have 451 00:22:11,280 --> 00:22:14,280 Speaker 1: to count the price of lattes, and actually you will 452 00:22:14,280 --> 00:22:17,439 Speaker 1: be accumulating serious wealth over the long term. 453 00:22:18,640 --> 00:22:22,560 Speaker 2: Okay, So the investment, though, I'm curious the ones that 454 00:22:22,720 --> 00:22:25,160 Speaker 2: I have, like one that's kind of aggressive, one that's 455 00:22:25,200 --> 00:22:27,040 Speaker 2: just sitting there, that's going to be like a slow 456 00:22:27,119 --> 00:22:29,800 Speaker 2: what kind of investment they do? Do you agree with 457 00:22:29,880 --> 00:22:32,880 Speaker 2: those kind of different portfolios or is there one where 458 00:22:32,920 --> 00:22:34,960 Speaker 2: you're like, no, go aggressive go hard. 459 00:22:34,840 --> 00:22:39,560 Speaker 1: Like, yeah, okay, So obviously this depends on a lot. 460 00:22:39,560 --> 00:22:41,040 Speaker 1: But I'm gonna tell you how what I tell my 461 00:22:41,119 --> 00:22:46,119 Speaker 1: family when they ask. So investing feels so confusing to people. 462 00:22:46,400 --> 00:22:50,080 Speaker 1: All right, it is so overwhelming. There's all these terms. 463 00:22:50,160 --> 00:22:53,879 Speaker 1: Nobody understands. What's the difference between apple stock and a 464 00:22:53,960 --> 00:22:56,120 Speaker 1: four oh one K. I'm like, uh, those are two 465 00:22:56,160 --> 00:22:59,160 Speaker 1: different animals. But let's work through it. When my family 466 00:22:59,200 --> 00:23:01,639 Speaker 1: goes where should I invest, here's what I tell. My 467 00:23:01,680 --> 00:23:05,159 Speaker 1: favorite investment for the everyday person is something called a 468 00:23:05,240 --> 00:23:08,840 Speaker 1: target date fund. And let me tell you what that means. 469 00:23:09,040 --> 00:23:14,399 Speaker 1: It's one fund, just one, and the year in the fund, 470 00:23:14,480 --> 00:23:18,320 Speaker 1: like Vanguard twenty and fifty or Fidelity twenty and fifty five, 471 00:23:18,760 --> 00:23:21,280 Speaker 1: that's the year that you're going to retire. So let's 472 00:23:21,320 --> 00:23:25,240 Speaker 1: pretend that I'm going to retire ballpark in twenty fifty. 473 00:23:25,359 --> 00:23:28,399 Speaker 1: Let's just say I would go find the Vanguard or 474 00:23:28,480 --> 00:23:30,840 Speaker 1: Fidelity or Schwab two thousand and fifty fund. They're all 475 00:23:30,840 --> 00:23:33,040 Speaker 1: pretty good. You can check the fees and stuff. I 476 00:23:33,119 --> 00:23:35,600 Speaker 1: cover this in chapter six and seven of my book, 477 00:23:36,240 --> 00:23:39,280 Speaker 1: and I'm not compensated by any of these companies, and 478 00:23:39,320 --> 00:23:42,000 Speaker 1: you can go you get one fund and you put 479 00:23:42,040 --> 00:23:44,000 Speaker 1: as much money as you can into it. Now, why 480 00:23:44,200 --> 00:23:47,160 Speaker 1: why is it called a target date fund? Because as 481 00:23:47,200 --> 00:23:51,879 Speaker 1: you're younger, it's pretty aggressive. You should be able to 482 00:23:51,920 --> 00:23:55,879 Speaker 1: handle that aggressive investment allocation. As you get older, it 483 00:23:55,960 --> 00:23:58,680 Speaker 1: becomes a little bit more conservative. In other words, you 484 00:23:58,680 --> 00:24:02,080 Speaker 1: don't want granny losing forty five percent of her investments 485 00:24:02,080 --> 00:24:05,000 Speaker 1: in a recession. Sure, that's it. You don't have to 486 00:24:05,040 --> 00:24:07,280 Speaker 1: rebalance it, you don't have to check it every day. 487 00:24:07,280 --> 00:24:09,080 Speaker 1: In fact, you shouldn't even be checking your investments more 488 00:24:09,119 --> 00:24:12,399 Speaker 1: than once every three to six months. And it's automatic. 489 00:24:12,920 --> 00:24:14,719 Speaker 1: That's the key thing of this whole thing. You're not 490 00:24:14,920 --> 00:24:17,840 Speaker 1: trying to save money every month. You're not trying to invest. 491 00:24:18,200 --> 00:24:21,000 Speaker 1: It's totally automatic. That is what I insist on. 492 00:24:21,600 --> 00:24:24,760 Speaker 2: Okay, and then ten to fifteen percent of the money 493 00:24:24,760 --> 00:24:27,000 Speaker 2: that you make should go to investments. 494 00:24:27,280 --> 00:24:27,879 Speaker 1: I would love that. 495 00:24:28,320 --> 00:24:35,400 Speaker 2: Yeah, Okay, I'm I'm gonna be like CC my business major. Okay, Yeah, 496 00:24:35,480 --> 00:24:38,199 Speaker 2: So can I ask a question about bitcoin? Are you? 497 00:24:38,359 --> 00:24:39,959 Speaker 2: Are you not allowed to say that? Because I know 498 00:24:40,000 --> 00:24:42,040 Speaker 2: some people aren't allowed to talk about bitcoin. 499 00:24:42,760 --> 00:24:44,399 Speaker 1: Who's going to not allow me to say anything? I 500 00:24:44,440 --> 00:24:45,320 Speaker 1: run my own business? Oh? 501 00:24:45,400 --> 00:24:48,000 Speaker 2: There, you go. So I have money in bitcoin. Should 502 00:24:48,040 --> 00:24:50,159 Speaker 2: I take it out because it's not doing anything? Or 503 00:24:50,200 --> 00:24:50,959 Speaker 2: should I keep it in? 504 00:24:51,520 --> 00:24:53,399 Speaker 1: First of all, how much do you have? Please tell me? 505 00:24:53,520 --> 00:24:57,320 Speaker 2: They answer, well, okay, so I have one bitcoin and 506 00:24:57,320 --> 00:25:00,840 Speaker 2: at the time it was thirty to go in for 507 00:25:00,920 --> 00:25:03,280 Speaker 2: one bitcoin, so I have thirty. But now it's down 508 00:25:03,359 --> 00:25:05,679 Speaker 2: to like, I think twenty something. It was up to 509 00:25:05,760 --> 00:25:07,600 Speaker 2: like sixty at one point, and then I should have 510 00:25:07,640 --> 00:25:09,360 Speaker 2: taken it out, but I didn't because they're like, it's 511 00:25:09,359 --> 00:25:11,520 Speaker 2: a low. It's it's a long game, long game. 512 00:25:11,600 --> 00:25:16,320 Speaker 1: I told you this. By the way, my manasuer, Oh 513 00:25:16,359 --> 00:25:18,360 Speaker 1: my god, is your business manager going to listen to this? 514 00:25:18,520 --> 00:25:22,320 Speaker 1: I hope not, because I don't really have nice things 515 00:25:22,320 --> 00:25:26,760 Speaker 1: to say about that. But okay, okay, let me put it. 516 00:25:26,760 --> 00:25:28,119 Speaker 2: Because I don't want to lose, because right now is 517 00:25:28,119 --> 00:25:29,399 Speaker 2: at like twenty three, so I'm like, I'd like to 518 00:25:29,440 --> 00:25:31,320 Speaker 2: take it out because I don't want to lose twenty 519 00:25:31,359 --> 00:25:34,080 Speaker 2: three when I've already lost seven or whatever. 520 00:25:34,800 --> 00:25:38,040 Speaker 1: You seem very sensible, But I talked to a lot 521 00:25:38,040 --> 00:25:40,520 Speaker 1: of bitcoin freaks on Twitter. Okay, they don't like me 522 00:25:40,640 --> 00:25:47,440 Speaker 1: because I actually understand investing, and here's my approach. I say, look, 523 00:25:47,480 --> 00:25:52,280 Speaker 1: if you have a well diversified portfolio, okay, and you 524 00:25:52,400 --> 00:25:57,080 Speaker 1: decide everything's diversified. I maxed out my accounts. You know what, 525 00:25:57,320 --> 00:25:59,159 Speaker 1: I want to have a little fun. I want to 526 00:25:59,200 --> 00:26:01,560 Speaker 1: take five percent of my money and I want to 527 00:26:01,600 --> 00:26:05,720 Speaker 1: invest it in alternative investments like bitcoin or my friend's 528 00:26:05,760 --> 00:26:08,800 Speaker 1: bar in Brooklyn. I say, God bless you, go for it. 529 00:26:08,880 --> 00:26:09,160 Speaker 2: Okay. 530 00:26:09,200 --> 00:26:12,800 Speaker 1: The problem is that literally every single person I've talked 531 00:26:12,800 --> 00:26:16,840 Speaker 1: to who invests in bitcoin doesn't even know what diversification is. 532 00:26:17,960 --> 00:26:20,680 Speaker 1: So if we looked at your portfolio, which I would 533 00:26:20,720 --> 00:26:24,040 Speaker 1: love to do, I have a sneaking suspicion that it 534 00:26:24,119 --> 00:26:27,119 Speaker 1: might not be diversified. That's just a guess. I don't know. 535 00:26:27,200 --> 00:26:29,960 Speaker 1: I'm not going to question anybody else. If that's the case, 536 00:26:30,119 --> 00:26:33,879 Speaker 1: I would I mean, that's really up to use in 537 00:26:33,920 --> 00:26:35,439 Speaker 1: terms of your goals. If it were me and I 538 00:26:35,480 --> 00:26:38,119 Speaker 1: were sitting here with twenty k in bitcoin and a 539 00:26:38,240 --> 00:26:42,000 Speaker 1: non diversified portfolio, personally, I would take that money, I 540 00:26:42,000 --> 00:26:45,159 Speaker 1: would sell it, and I would get my portfolio in 541 00:26:45,320 --> 00:26:48,399 Speaker 1: order so it's well diversified. That's what I would do. 542 00:26:48,600 --> 00:26:50,439 Speaker 1: But it all depends on your goals and what. You know, 543 00:26:50,480 --> 00:26:51,960 Speaker 1: what you decided to do, right. 544 00:27:04,280 --> 00:27:06,320 Speaker 2: Can we like talk offline too? Because now I'm like, 545 00:27:06,320 --> 00:27:08,159 Speaker 2: I want to send you everything. 546 00:27:07,720 --> 00:27:10,840 Speaker 1: And I'm like, I just talk to online. People want to. 547 00:27:10,760 --> 00:27:15,040 Speaker 2: Know, well, they do so they can hate on me. 548 00:27:15,200 --> 00:27:17,159 Speaker 2: That's that's that's their favorite thing. Because they were like, 549 00:27:17,680 --> 00:27:21,520 Speaker 2: I'll never forget when I got so my lease of 550 00:27:21,520 --> 00:27:23,440 Speaker 2: my Range Drover was up, and so in my mind, 551 00:27:23,440 --> 00:27:25,240 Speaker 2: they're like, you can keep this. This is this is 552 00:27:25,320 --> 00:27:27,480 Speaker 2: this is a perfect example of who who I am 553 00:27:27,920 --> 00:27:32,960 Speaker 2: so in money wise, So my Range Drover lease was up. 554 00:27:33,200 --> 00:27:34,320 Speaker 1: It was like much was it? 555 00:27:34,320 --> 00:27:36,639 Speaker 2: It was a three year lease. It was just a 556 00:27:36,680 --> 00:27:39,560 Speaker 2: sport like whatever eighty I have no idea. I don't 557 00:27:39,600 --> 00:27:41,199 Speaker 2: I like to lease cars. I'm not a buyer, like 558 00:27:41,240 --> 00:27:43,280 Speaker 2: I get sick of things. So I just you know, 559 00:27:43,560 --> 00:27:47,560 Speaker 2: I'm a lease so I wish I would love your 560 00:27:47,960 --> 00:27:52,440 Speaker 2: take on that. But leased it and then the new 561 00:27:52,480 --> 00:27:54,520 Speaker 2: cars weren't ready yet, and so they said it'd probably 562 00:27:54,600 --> 00:27:56,560 Speaker 2: probably be like a couple of years, so you can 563 00:27:56,680 --> 00:27:59,640 Speaker 2: keep the car. And I was like, well that means 564 00:27:59,640 --> 00:28:02,080 Speaker 2: that you have a demand then, so you need my 565 00:28:02,240 --> 00:28:04,760 Speaker 2: car back. So I'm like, would you like to buy 566 00:28:04,800 --> 00:28:08,560 Speaker 2: my car back? Even though it's a lease, And They're like, yeah, 567 00:28:08,600 --> 00:28:10,600 Speaker 2: we'll write you a check for this amount. So then 568 00:28:10,600 --> 00:28:12,919 Speaker 2: in my mind I go, perfect, I'm gonna I'm going 569 00:28:13,000 --> 00:28:14,800 Speaker 2: to give you back my lease and I'm actually going 570 00:28:14,880 --> 00:28:17,120 Speaker 2: to get money, which has never happened before on a lease. 571 00:28:17,400 --> 00:28:20,080 Speaker 2: But thank you for the check. Now I'm going to 572 00:28:20,160 --> 00:28:22,600 Speaker 2: go get a less expensive car to save money for 573 00:28:22,600 --> 00:28:24,560 Speaker 2: the next two years until my other car comes. 574 00:28:25,760 --> 00:28:29,239 Speaker 1: Okay, I'm with you so far. Interesting strategy. Here's my 575 00:28:29,280 --> 00:28:32,400 Speaker 1: one question, Kay, what did you do with the difference? 576 00:28:33,240 --> 00:28:35,520 Speaker 2: The difference I held onto it for a down payment 577 00:28:35,560 --> 00:28:36,280 Speaker 2: for the next car? 578 00:28:37,720 --> 00:28:41,000 Speaker 1: Okay, all right? Not bad, not bad, not bad. That's 579 00:28:41,240 --> 00:28:43,560 Speaker 1: that's better than most people be like I went to 580 00:28:43,600 --> 00:28:44,920 Speaker 1: Chipotle and spent it. 581 00:28:45,360 --> 00:28:48,959 Speaker 2: I'm like, yeah, says a down payment. So then what 582 00:28:49,000 --> 00:28:50,680 Speaker 2: I did was I went and bought a Wrangler. And 583 00:28:50,720 --> 00:28:53,440 Speaker 2: everyone of them was like, she's broke, she's losing her money, 584 00:28:53,560 --> 00:28:55,160 Speaker 2: she had to sell her. I was like, no, I 585 00:28:55,200 --> 00:28:57,240 Speaker 2: just wanted to save eight hundred bucks a month on 586 00:28:57,280 --> 00:28:59,360 Speaker 2: a car payment, so I went and got a wrangler. 587 00:28:59,880 --> 00:29:02,080 Speaker 1: You listen to the people who accuse you of being broke, 588 00:29:02,120 --> 00:29:02,800 Speaker 1: does it affect you? 589 00:29:03,920 --> 00:29:06,480 Speaker 2: There's like, I'm not going to say negative comments don't 590 00:29:06,480 --> 00:29:08,640 Speaker 2: affect me, Like, sure it affects me, you know, I haven't. 591 00:29:08,720 --> 00:29:11,400 Speaker 2: You know, some businesses didn't work out and it hurts 592 00:29:11,440 --> 00:29:15,959 Speaker 2: and I feel like a failure. So when people highlight it, 593 00:29:16,040 --> 00:29:19,560 Speaker 2: sometimes it's like it Onlygnight's like, oh I am a failure. 594 00:29:19,680 --> 00:29:21,640 Speaker 2: I know I'm not. I know people have to take 595 00:29:21,760 --> 00:29:24,280 Speaker 2: chances in business, and some things work and some things don't. 596 00:29:25,480 --> 00:29:28,800 Speaker 2: Having said that, though, you know, sure it can affect 597 00:29:28,800 --> 00:29:31,600 Speaker 2: but I know, I'm like, and hey, a Wrangler's a 598 00:29:31,640 --> 00:29:33,800 Speaker 2: great car. So I was like a calm a business tch. 599 00:29:33,880 --> 00:29:36,680 Speaker 2: I'm like, I'm saving money. I'm so excited, and he's like, 600 00:29:36,680 --> 00:29:37,760 Speaker 2: you're my favorite client. 601 00:29:38,320 --> 00:29:39,240 Speaker 1: And then I love that. 602 00:29:39,480 --> 00:29:42,520 Speaker 2: But now I'm like, listen with what I'm paying for 603 00:29:42,600 --> 00:29:44,560 Speaker 2: my house. Now I feel like i'm you know, it's 604 00:29:44,600 --> 00:29:46,600 Speaker 2: it's a lot more than my last house, and I'm 605 00:29:46,640 --> 00:29:48,640 Speaker 2: starting to feel the stress and the pressure of that. 606 00:29:49,120 --> 00:29:51,440 Speaker 2: So at this point, I'm like, what's wrong with him? Anivan? 607 00:29:51,640 --> 00:29:53,560 Speaker 2: I don't care what I drive. It's a car. It 608 00:29:53,560 --> 00:29:55,640 Speaker 2: gets me from A to B. I don't care. Like 609 00:29:56,040 --> 00:29:58,760 Speaker 2: my dream was a g wagon. I wanted one so bad. 610 00:29:58,800 --> 00:30:01,280 Speaker 2: And when my ex and I were married, he was like, 611 00:30:01,760 --> 00:30:04,920 Speaker 2: when we pay off his car, I can get my 612 00:30:05,000 --> 00:30:08,120 Speaker 2: dream car. So I paid off his car, and then 613 00:30:08,800 --> 00:30:11,000 Speaker 2: now I'm paying him child support. So my child support 614 00:30:11,040 --> 00:30:12,640 Speaker 2: is my g wagon payment. So I'm like, well, there 615 00:30:12,720 --> 00:30:15,000 Speaker 2: goes that. That's up in flames. But now I'm like, 616 00:30:15,080 --> 00:30:17,520 Speaker 2: I would never spend that much money on a car anyways, 617 00:30:17,560 --> 00:30:20,400 Speaker 2: Like why would I do that? So now in my mind, 618 00:30:20,440 --> 00:30:22,440 Speaker 2: I'm like, I don't care. And if people are gonna 619 00:30:22,640 --> 00:30:25,080 Speaker 2: talk crap about me driving a minivan or whatever, it is, 620 00:30:25,120 --> 00:30:26,280 Speaker 2: like who cares? 621 00:30:27,040 --> 00:30:27,680 Speaker 3: Good? 622 00:30:28,760 --> 00:30:31,320 Speaker 1: Two things I want to say, First off, yeah, uh 623 00:30:32,200 --> 00:30:36,720 Speaker 1: I kind of. I love when people like they're like, oh, REMI, 624 00:30:37,680 --> 00:30:39,480 Speaker 1: why do you do that? That doesn't make any sense? 625 00:30:40,320 --> 00:30:43,280 Speaker 1: And a car is the perfect example for me because 626 00:30:43,320 --> 00:30:46,080 Speaker 1: I could afford any car. I happen to love my 627 00:30:46,440 --> 00:30:52,560 Speaker 1: seventeen year old Honda Cord yes Christine condition. Of course Indians, 628 00:30:52,800 --> 00:30:56,320 Speaker 1: you know we love Hondas and Toyotas, And it's just like, 629 00:30:56,720 --> 00:30:58,760 Speaker 1: why would I get something? Of course I could get 630 00:30:58,760 --> 00:31:03,080 Speaker 1: something nice in you, but hardly drive anywhere. But you 631 00:31:03,200 --> 00:31:05,040 Speaker 1: contrast that because that's a part of my life that 632 00:31:05,080 --> 00:31:08,200 Speaker 1: I don't really care about, okay, versus the parts I 633 00:31:08,240 --> 00:31:13,719 Speaker 1: do care about. I love hotels. I love fitness, I 634 00:31:13,800 --> 00:31:18,960 Speaker 1: love clothes, and so those are the things where I 635 00:31:19,000 --> 00:31:22,760 Speaker 1: spend extravagantly on the things I love, but I cut 636 00:31:22,800 --> 00:31:26,200 Speaker 1: costs mercilessly on the things I don't. And that's what 637 00:31:26,280 --> 00:31:29,680 Speaker 1: I actually encourage everybody to do, so rather than what 638 00:31:29,720 --> 00:31:32,360 Speaker 1: we normally do, which is like we feel guilty about everything, 639 00:31:32,600 --> 00:31:34,440 Speaker 1: and then we try to cut five percent back on 640 00:31:34,760 --> 00:31:37,160 Speaker 1: Cheetos and five percent back on coffee and five percent 641 00:31:37,200 --> 00:31:40,680 Speaker 1: back on It's like that sucks. Pick the things that 642 00:31:40,720 --> 00:31:44,040 Speaker 1: you love, go through some of my exercises in my book, 643 00:31:44,120 --> 00:31:46,240 Speaker 1: figure out how you can actually spend more on them. 644 00:31:46,400 --> 00:31:48,960 Speaker 1: But you got to cut cost mercilessly on the things 645 00:31:49,040 --> 00:31:49,480 Speaker 1: you don't. 646 00:31:50,120 --> 00:31:51,680 Speaker 2: So like for a car, I wouldn't care. 647 00:31:52,200 --> 00:31:54,800 Speaker 1: Exactly, and yeah, you should actually feel great about that. 648 00:31:54,840 --> 00:31:58,000 Speaker 1: You're like, yeah, because I'm living my rich life with 649 00:31:58,440 --> 00:32:00,880 Speaker 1: whatever else you're spending more on. Okay, my rich life 650 00:32:00,920 --> 00:32:03,640 Speaker 1: is not my car. I just don't care. Now. Second 651 00:32:03,640 --> 00:32:05,520 Speaker 1: thing I want to say is you took that money, 652 00:32:05,560 --> 00:32:08,280 Speaker 1: the difference you saved it for a down payment. Great. 653 00:32:09,000 --> 00:32:12,000 Speaker 1: Can I just make one suggestion going forward, sure, which 654 00:32:12,040 --> 00:32:15,760 Speaker 1: is I would love it for everybody listening and for 655 00:32:15,880 --> 00:32:21,400 Speaker 1: you to develop a really aggressive bias towards investing. Okay, 656 00:32:21,480 --> 00:32:23,400 Speaker 1: so for me, if I have extra money that I 657 00:32:23,440 --> 00:32:26,160 Speaker 1: don't need or I don't need it for certainly ten 658 00:32:26,160 --> 00:32:28,800 Speaker 1: plus years, that's getting invested. And again, that's where the 659 00:32:28,840 --> 00:32:31,600 Speaker 1: real wealth is created. And most of us, you know, 660 00:32:31,640 --> 00:32:33,800 Speaker 1: we don't think about that. Investments are kind of this 661 00:32:34,000 --> 00:32:38,040 Speaker 1: retirement thing that somebody else worries about. But that forces 662 00:32:38,120 --> 00:32:41,080 Speaker 1: us to play small. If we're only taking money and 663 00:32:41,120 --> 00:32:43,720 Speaker 1: transferring it from checking the savings, we're playing small. And 664 00:32:43,720 --> 00:32:45,840 Speaker 1: I don't want us to play small. I want us 665 00:32:45,880 --> 00:32:48,920 Speaker 1: to live a rich life, which is big. 666 00:32:49,120 --> 00:32:52,840 Speaker 2: So that's an interesting point that you say, because it's 667 00:32:52,920 --> 00:32:55,160 Speaker 2: only been a couple of years that I've truly started 668 00:32:55,200 --> 00:32:58,560 Speaker 2: investing because I was so afraid that like the money 669 00:32:58,640 --> 00:33:01,680 Speaker 2: that I did make would go away, because you know, 670 00:33:01,880 --> 00:33:04,000 Speaker 2: markets fluctuate and then they go up and down, and 671 00:33:04,120 --> 00:33:05,880 Speaker 2: you know, you hear people say now that they're taking 672 00:33:05,880 --> 00:33:08,000 Speaker 2: their money out and you know, buy. 673 00:33:07,840 --> 00:33:12,520 Speaker 1: Gold or don't listen to these crackpots by gold. Come on, 674 00:33:13,080 --> 00:33:14,880 Speaker 1: next time you get someone telling you that, just send 675 00:33:14,920 --> 00:33:16,440 Speaker 1: me the text or send me the I'd be like, 676 00:33:16,600 --> 00:33:19,080 Speaker 1: I'm gonna tell you eighty things wrong with this person. 677 00:33:19,720 --> 00:33:24,520 Speaker 1: And listen. I've listened to enough lunatics, crackpots talking about gold, 678 00:33:24,600 --> 00:33:27,680 Speaker 1: talking about silver. There's a guy online, he's very famous 679 00:33:27,680 --> 00:33:30,320 Speaker 1: personal finance author. One year ago he recommended, I swear 680 00:33:30,360 --> 00:33:33,000 Speaker 1: to god, I'm not making this up. He recommended everybody 681 00:33:33,040 --> 00:33:37,520 Speaker 1: by tuna literally tuna like tuna fish. You know, kids 682 00:33:37,560 --> 00:33:41,480 Speaker 1: eat tuna fish. That was his recommendation for an investment. 683 00:33:41,520 --> 00:33:44,920 Speaker 1: I go, why why would anyone listen to these crackpots? Okay, 684 00:33:45,920 --> 00:33:49,560 Speaker 1: investing is simple and boring. It's like watching paint dry. 685 00:33:50,040 --> 00:33:52,200 Speaker 1: It's not like I'm sitting here logging. Ooh, it's so cool. 686 00:33:52,240 --> 00:33:56,120 Speaker 1: My excitement. I'm like, get a dog, Okay, watch a drama. 687 00:33:56,840 --> 00:33:59,800 Speaker 1: Investments should not be exciting. You should not be checking 688 00:33:59,800 --> 00:34:03,160 Speaker 1: them all the time. They should be extremely boring. That's 689 00:34:03,480 --> 00:34:06,040 Speaker 1: real investing and that's real wealth creation. 690 00:34:06,520 --> 00:34:10,719 Speaker 2: Okay, So for the people, because what's the percentage they 691 00:34:10,719 --> 00:34:14,239 Speaker 2: say that I'm living paycheck to paycheck? Isn't it? Is 692 00:34:14,239 --> 00:34:17,560 Speaker 2: it over fifty percent? Is what they've said a lot. Again, 693 00:34:17,680 --> 00:34:19,680 Speaker 2: I had to get to a certain amount where I 694 00:34:19,719 --> 00:34:23,800 Speaker 2: felt comfortable to invest. At what point? And even again, 695 00:34:23,880 --> 00:34:26,840 Speaker 2: it is no matter how much you're making, you still 696 00:34:26,880 --> 00:34:29,360 Speaker 2: think to invest the ten to fifteen percent. 697 00:34:30,320 --> 00:34:33,760 Speaker 1: I think that everyone can find fifty dollars a month 698 00:34:33,840 --> 00:34:36,600 Speaker 1: to invest with rare exceptions. 699 00:34:36,800 --> 00:34:39,239 Speaker 2: Yeah, okay, I think that's a great sorry point because 700 00:34:39,239 --> 00:34:41,040 Speaker 2: even like my brother, like he's just like, well, I can't, 701 00:34:41,040 --> 00:34:43,840 Speaker 2: I can't do this. I pay paycheck to paycheck. I'm like, 702 00:34:43,880 --> 00:34:46,200 Speaker 2: I know, but like, you got to start putting something 703 00:34:46,239 --> 00:34:47,760 Speaker 2: in there so it can start building. 704 00:34:48,360 --> 00:34:51,239 Speaker 1: Here's here's why people find that difficult. First off, they 705 00:34:52,040 --> 00:34:56,439 Speaker 1: usually try to invest at the end of the month. 706 00:34:56,640 --> 00:34:59,319 Speaker 1: It's like I don't try to brush my teeth. It's 707 00:34:59,360 --> 00:35:01,120 Speaker 1: just a habit. You know how to do it every morning, 708 00:35:01,200 --> 00:35:04,600 Speaker 1: every night. Investing is even easier, so I don't try 709 00:35:04,640 --> 00:35:07,240 Speaker 1: to invest. The money comes directly out of my paycheck 710 00:35:07,360 --> 00:35:10,680 Speaker 1: and gets automatically invest. I'm not even seeing it. And 711 00:35:10,719 --> 00:35:13,520 Speaker 1: so many of us have gone twenty years telling ourselves, oh, 712 00:35:13,560 --> 00:35:15,320 Speaker 1: I can't, I have no extra money. There's no way. 713 00:35:15,600 --> 00:35:17,360 Speaker 1: The fact is, if you took fifty dollars or one 714 00:35:17,400 --> 00:35:19,400 Speaker 1: hundred dollars or five hundred dollars out of your paycheck, 715 00:35:19,440 --> 00:35:22,040 Speaker 1: depending on what it is, you would never miss it. 716 00:35:22,600 --> 00:35:25,239 Speaker 1: You would get completely used to not having it, and 717 00:35:25,320 --> 00:35:28,680 Speaker 1: that money grows to numbers that are for most people 718 00:35:28,880 --> 00:35:33,040 Speaker 1: very inconceivable. So making the decision to set up automatic 719 00:35:33,040 --> 00:35:35,560 Speaker 1: investing is probably one of the top five most important 720 00:35:35,560 --> 00:35:37,960 Speaker 1: decisions you can do in your entire life. 721 00:35:38,719 --> 00:35:42,040 Speaker 2: That is such a good point. I love that. That's 722 00:35:42,200 --> 00:35:46,600 Speaker 2: hopefully people can hear that and take that. There was 723 00:35:46,640 --> 00:35:49,840 Speaker 2: an app called Acorns that kind of took Do you 724 00:35:50,040 --> 00:35:51,600 Speaker 2: like that one? Where I thought that was kind of 725 00:35:51,600 --> 00:35:53,759 Speaker 2: interesting where it takes fun, it rounds it up at 726 00:35:53,840 --> 00:35:56,320 Speaker 2: least there's something going. It's I don't think it's enough. 727 00:35:56,120 --> 00:36:00,200 Speaker 1: But it's fine. I don't mind it. It's a fine app. 728 00:36:00,840 --> 00:36:04,160 Speaker 1: I personally don't use that. I use another, you know, 729 00:36:04,280 --> 00:36:07,520 Speaker 1: simple investment, which just happens automatically. But if that's what's 730 00:36:07,520 --> 00:36:09,920 Speaker 1: going to get you into investing, I don't have a 731 00:36:09,920 --> 00:36:10,440 Speaker 1: problem with it. 732 00:36:10,719 --> 00:36:13,799 Speaker 2: So then basically the main thing is to get rich. 733 00:36:15,280 --> 00:36:19,759 Speaker 1: It's invest well, it's designing your rich life, because we 734 00:36:19,840 --> 00:36:23,319 Speaker 1: have to remember that in America, most of us we 735 00:36:23,480 --> 00:36:25,919 Speaker 1: just think, like, what is rich. It's having a big 736 00:36:25,920 --> 00:36:29,400 Speaker 1: house in the suburbs, a car, two point five kids, 737 00:36:29,880 --> 00:36:33,000 Speaker 1: and then we go to Florida and die. It's like, 738 00:36:34,280 --> 00:36:36,440 Speaker 1: I don't that's not my rich life. But if that's 739 00:36:36,480 --> 00:36:41,480 Speaker 1: yours fantastic. I want people to get ultra specific about it. 740 00:36:41,520 --> 00:36:43,800 Speaker 1: For example, one of my readers he used my stuff. 741 00:36:44,280 --> 00:36:45,960 Speaker 1: He and his wife retired in their mid thirties and 742 00:36:45,960 --> 00:36:48,440 Speaker 1: they travel the country in an RV. Okay, I don't 743 00:36:48,480 --> 00:36:50,760 Speaker 1: want to get anywhere near an RV, but I love 744 00:36:51,640 --> 00:36:54,560 Speaker 1: that they have really dialed in their rich life. So 745 00:36:54,560 --> 00:36:56,800 Speaker 1: that's the first thing, is you know, you use my journal, 746 00:36:56,960 --> 00:36:59,320 Speaker 1: you get crystal clear, whether you're solo or with a partner. 747 00:36:59,480 --> 00:37:01,839 Speaker 1: What is it that we're working towards. Do we want 748 00:37:01,840 --> 00:37:03,880 Speaker 1: to travel two weeks a year, two months a year? 749 00:37:04,160 --> 00:37:06,120 Speaker 1: Do we want our kids to go to this activity? 750 00:37:06,800 --> 00:37:09,960 Speaker 1: It's worth getting specific. Then it's taking a look at 751 00:37:09,960 --> 00:37:13,240 Speaker 1: your four key numbers and making sure that your numbers 752 00:37:13,239 --> 00:37:16,160 Speaker 1: are actually matching up with your vision of a rich life. 753 00:37:16,680 --> 00:37:19,080 Speaker 1: And suddenly most of us, as we're listening and watching this, 754 00:37:19,160 --> 00:37:22,640 Speaker 1: we can realize why money feels so overwhelming because we 755 00:37:22,680 --> 00:37:25,480 Speaker 1: don't actually have a vision. We just feel like we're 756 00:37:25,480 --> 00:37:28,480 Speaker 1: doing something wrong and we need to cut back everywhere. 757 00:37:28,800 --> 00:37:31,200 Speaker 1: But there's no purpose to it. So it's like, if 758 00:37:31,239 --> 00:37:34,920 Speaker 1: there's no purpose, no vivid personal purpose, then if my 759 00:37:34,960 --> 00:37:37,279 Speaker 1: friends text me to go hang out or go to 760 00:37:37,360 --> 00:37:39,640 Speaker 1: Vegas or whatever it might be. Of course I'm gonna 761 00:37:39,640 --> 00:37:42,839 Speaker 1: be like, yeah, because I don't have a bigger north Star. 762 00:37:43,000 --> 00:37:45,240 Speaker 1: And that is what I want people to do. Design 763 00:37:45,280 --> 00:37:47,200 Speaker 1: your rich life and then use your money to live it. 764 00:37:47,880 --> 00:37:50,120 Speaker 2: Okay, I like that too, All these little things they're 765 00:37:50,160 --> 00:37:54,399 Speaker 2: so good. One more thing on the house. What would 766 00:37:54,440 --> 00:37:57,640 Speaker 2: be your advice for someone that is, if however much 767 00:37:57,719 --> 00:38:01,080 Speaker 2: is in the bank or whatever, what should the cost 768 00:38:01,160 --> 00:38:03,319 Speaker 2: of their house be? Like, what's the percentage of that. 769 00:38:03,880 --> 00:38:05,640 Speaker 1: Your total housing expense? 770 00:38:06,200 --> 00:38:09,880 Speaker 2: Everything from electric everything. 771 00:38:09,960 --> 00:38:11,240 Speaker 1: Yep, sprinklers. 772 00:38:11,560 --> 00:38:13,759 Speaker 2: Sprinklers, those are really expensive, by the way, because I 773 00:38:13,760 --> 00:38:15,760 Speaker 2: just got irrigation, I'm like, nope, we're seeding and strawing 774 00:38:15,760 --> 00:38:17,120 Speaker 2: in my backyard. Thank you very much. 775 00:38:18,560 --> 00:38:23,760 Speaker 1: And keep in mind this maintenance such as a eighteen 776 00:38:23,800 --> 00:38:26,279 Speaker 1: thousand dollars roof repair that's going to happen nine years 777 00:38:26,320 --> 00:38:29,000 Speaker 1: from now. It's not even on your radar yet, but 778 00:38:29,000 --> 00:38:31,160 Speaker 1: it's going to happen. You got to save for that. 779 00:38:31,239 --> 00:38:36,319 Speaker 1: All of that should be approximately less than twenty eight 780 00:38:36,360 --> 00:38:38,040 Speaker 1: percent of your gross income. 781 00:38:38,080 --> 00:38:39,319 Speaker 2: Wait a second, so let's know. 782 00:38:40,040 --> 00:38:42,960 Speaker 1: As you're calculating me, let me say something to everyone listening. Yeah, 783 00:38:43,040 --> 00:38:44,880 Speaker 1: everybody's freaking out right now, you're going to freak out 784 00:38:44,880 --> 00:38:46,719 Speaker 1: as you calculate that. Okay, look at that face. That's 785 00:38:46,719 --> 00:38:49,759 Speaker 1: what I thought. All right, hold on, don't tell me 786 00:38:49,800 --> 00:38:51,759 Speaker 1: the number yet, but I want to just I want 787 00:38:51,800 --> 00:38:55,280 Speaker 1: to give you one piece of comforting advice in high 788 00:38:55,320 --> 00:38:58,960 Speaker 1: cost of living areas like La New York, San Francisco, 789 00:38:59,320 --> 00:39:04,560 Speaker 1: that numbers almost impossible to hit, especially for young people. Yeah, now, 790 00:39:05,200 --> 00:39:08,760 Speaker 1: I don't mind stretching it a little bit. Okay. For example, 791 00:39:08,800 --> 00:39:10,600 Speaker 1: if somebody came to me, they go, remeet, I have 792 00:39:10,680 --> 00:39:13,600 Speaker 1: no debt. I stretched it to thirty two, maybe even 793 00:39:13,719 --> 00:39:17,120 Speaker 1: thirty four maybe. But I have to tell you that 794 00:39:17,160 --> 00:39:19,680 Speaker 1: the higher it goes, the less money you have for 795 00:39:19,800 --> 00:39:22,760 Speaker 1: everything else. And that is why people freak out about 796 00:39:22,800 --> 00:39:25,239 Speaker 1: the price of chips. It has nothing to do with 797 00:39:25,239 --> 00:39:26,839 Speaker 1: the price of chips. It's all because they spend too 798 00:39:26,880 --> 00:39:27,759 Speaker 1: much on their house or car. 799 00:39:27,880 --> 00:39:30,239 Speaker 2: Okay, tell us where all of our listeners can come. 800 00:39:31,320 --> 00:39:33,600 Speaker 2: Just follow everything you're doing and everything. 801 00:39:34,000 --> 00:39:36,920 Speaker 1: Okay, best thing is to start with my podcast. It's 802 00:39:36,960 --> 00:39:38,920 Speaker 1: called I Will Teach You to Be Rich. And this 803 00:39:39,080 --> 00:39:41,000 Speaker 1: is where I bring couples on. Some of them have 804 00:39:41,040 --> 00:39:42,880 Speaker 1: eight hundred thousand dollars of debt. They're not sure if 805 00:39:42,880 --> 00:39:45,120 Speaker 1: they can afford to have kids. Some of them are 806 00:39:45,160 --> 00:39:48,440 Speaker 1: about to get divorced because he's too cheap. They've been 807 00:39:48,440 --> 00:39:50,120 Speaker 1: married twenty one years and it turns out their net 808 00:39:50,200 --> 00:39:53,240 Speaker 1: worth is over ten million dollars. You can actually listen 809 00:39:53,280 --> 00:39:55,520 Speaker 1: to me talk to them and go through their financials. 810 00:39:55,960 --> 00:39:58,560 Speaker 1: My book I Will Teach You to Be Rich, and 811 00:39:58,719 --> 00:40:02,000 Speaker 1: my website and flick show it's out there. Search it out. 812 00:40:02,040 --> 00:40:03,560 Speaker 1: I'd love to have you in my community. 813 00:40:03,719 --> 00:40:06,320 Speaker 2: You're amazing. I'm dming you in like ten minutes. 814 00:40:06,719 --> 00:40:07,880 Speaker 1: Awesome. Talk to you. 815 00:40:07,920 --> 00:40:10,160 Speaker 2: Thanks, friend to see you all right, all right bye