Speaker 1: Hey, ba fam, it's Mandy Money here aka Mandra Listen, y'all.
Speaker 1: I want this to be the year when you finally
Speaker 1: learn how to be the badass negotiator that you have
Speaker 1: always wanted to be. Whether you are plucking up your
Speaker 1: courage and trying to ask for a raise where you
Speaker 1: currently work, or you are ready to negotiate a damn good,
Speaker 1: juicy offer from a new job, I am here for you.
Speaker 1: I have got a five step signature salary negotiation strategy
Speaker 1: that I only teach in my free virtual Nail Your
Speaker 1: Negotiation Masterclass. I've got one coming up in just a
Speaker 1: couple of weeks. You can sign up and save your
Speaker 1: spot at Nail Your Negotiation dot Com. That's Nail your
Speaker 1: Negotiation dot Com. I can't wait to see y'all there.
Speaker 2: It's time for the ba qa A the ba qa?
Speaker 3: What to say?
Speaker 2: The ba qa with Tiffin A the ba qa.
Speaker 3: There's no man today.
Speaker 2: Instead, we are making it a happy money, happy life week. Okay,
Speaker 2: We've got my friend Jason V. Tug in the stew.
Speaker 2: That's the studio for those of you who are not
Speaker 2: as cool. If you did not listen to the regular
Speaker 2: Brown Ambition episode on Wednesday with Jason.
Speaker 3: It is amazing. We do breath work.
Speaker 2: We talk about his new book, Happy Money, Happy Life,
Speaker 2: which is available at Happy Money, haappylifebook dot com. It
Speaker 2: is an amazing, amazing, amazing episode. So go listen. I
Speaker 2: asked Jason stand the stew Jason and help me to
Speaker 2: answer some finance questions and Jason agreed.
Speaker 4: Thanks Jason, Oh, thank you so much. This is exciting.
Speaker 2: Let's do this well real quick because I forgot. I'm like,
Speaker 2: if you didn't listen, you might not know who Jason is.
Speaker 4: So.
Speaker 2: Jason is a wellness advocate and best selling New York
Speaker 2: Times reviewed author of two books. He's the founder of
Speaker 2: Frugal phrga L and is an award winning creator of
Speaker 2: the Road to Financial Wellness product project. Jason is a
Speaker 2: certified Diversity, Equity and Inclusion Expert, holds the Psychology of
Speaker 2: Financial plays in certification, and is a certified Yoga instructor
Speaker 2: and breathwork specialist. Jason focuses on holistic a holistic approach
Speaker 2: where money isn't the goal, but money is a.
Speaker 3: Tool to help achieve the goal.
Speaker 2: He's been featured on the TED Next Stage, Y'ahoo Finance
Speaker 2: for Forbes, Business Insider, New York Times, to name a few.
Speaker 2: So we have a real financial educator, but one a
Speaker 2: man after my own heart. Not just personal finance, but
Speaker 2: holistic wellness in the room. So okay, first question, Jason,
Speaker 2: that came into the room.
Speaker 3: Let me see. Oh my gosh, Okay, this is from Paula. Hey, Paula,
Speaker 3: straight up, now tell me if you really want to
Speaker 3: love me. Some of y'all don't know. That's Paul Abdul.
Speaker 2: You too young, Hey, ladies and Jason, I'm tackling my
Speaker 2: debt and looking to start investing soon. I work for
Speaker 2: a public agency that offers a four fifty seven B
Speaker 2: which is basically like and an retirement account at her job.
Speaker 2: It's a nonprofit retirement account. Or I'm guessing a public
Speaker 2: agency retirement account and have been contributing a small amount
Speaker 2: each paid period. Would you recommend contributing to this plan
Speaker 2: or opening up a wroth ir to contribute to Thank
Speaker 2: you so much for your insight.
Speaker 3: What do you say, Jason?
Speaker 4: Well, I think when it comes to retirement planning, I'm
Speaker 4: a big believer in taking advantage of your employer accounts,
Speaker 4: especially if there is a match an employer match, and
Speaker 4: so she mentioned that she's contributing a small amount and
Speaker 4: already thinking about the roth IRA. I think that's that's
Speaker 4: a good line of thinking. But I want you to
Speaker 4: maximize your contribution to that employer plan first before you
Speaker 4: start adding into in terms of like your your goals.
Speaker 4: And that has a lot to do with the employer match,
Speaker 4: and that has a lot to do with also lowering
Speaker 4: your potential tax liabilities. And so those are two things
Speaker 4: that I would suggest.
Speaker 2: All right, So I am on like especially with I'll
Speaker 2: say this that, like, if you have an employer program,
Speaker 2: which is awesome, to Jason's point, if you contribute to
Speaker 2: your employer's retirement account. Let's just say you have one
Speaker 2: hundred thousand dollars, right, and you contribute I don't know,
Speaker 2: six thousand. Great, So then the government says you didn't
Speaker 2: make a hundred thousand, right Jason. It says you made
Speaker 2: one hundred thousand minus six, so you made ninety four thousand.
Speaker 3: That's what we're taxing you on.
Speaker 2: So that's what Jason means about that you get tax like,
Speaker 2: you get a tax break now because when you contribute,
Speaker 2: you get the tax break now. And then when you
Speaker 2: go to pull money out later when you're sixty five
Speaker 2: and a half plus, you will pay taxes on the
Speaker 2: back end, but not on the front end. Right, But
Speaker 2: with a Jason right, that's the opposite correct that you
Speaker 2: don't get the tax break now because you basically put
Speaker 2: in money with the roth ira now after tax money,
Speaker 2: she already paid taxes on it. But when you go
Speaker 2: to pull out your WROTH when you're older, then, because
Speaker 2: you pay taxes up front, you don't have to pay
Speaker 2: taxes on what you contributed or the growth of that.
Speaker 2: You know, like let's just say you put in one
Speaker 2: hundred thousand off your lifetime, it grew to two hundred thousand,
Speaker 2: you don't have to pay taxes on that two hundred thousand.
Speaker 2: So there's no right or wrong, and that like contribute
Speaker 2: could tribute because you know, to Jason's point, it's almost
Speaker 2: like a seesaw. You want to get some tax breaks now,
Speaker 2: but you also want to get some tax breaks later.
Speaker 2: So typically what I say is that, like, if you
Speaker 2: have an employer account, get your match on and if
Speaker 2: you are close to maxing out what you can technically
Speaker 2: make to contribute, because everyone can't contribute to a roth IRA.
Speaker 3: I think it was like one hundred and thirty nine
Speaker 3: thousand dollars.
Speaker 2: I'm not sure what the max is right now, Like,
Speaker 2: you can't make over a certain amount of money and
Speaker 2: contribute to a roth iray. There's backdoor ross, but we're
Speaker 2: just talking plain regular personal finance that up to a
Speaker 2: certain amount of money. They don't want individuals contributing to
Speaker 2: a roth ira, you know, So if you are like
Speaker 2: at one hundred thousand, I might be seesaw because you
Speaker 2: could have both at the same time, contributing to my
Speaker 2: employer account but then also contributing to like my roth
Speaker 2: ira to make sure that, like you know, before it's
Speaker 2: too late for me to max.
Speaker 3: Out on my roth IRA. So either way, go ahead.
Speaker 4: To Jason's Yeah, no, that's a good point because you
Speaker 4: need there's a strategy around that. So you want to
Speaker 4: make sure that you're employing kind of like before the
Speaker 4: tax before taxes and after taxes, and there's there's a
Speaker 4: lot of nuances when it comes to that. But I
Speaker 4: think you're at the point where if you're thinking about
Speaker 4: roth iras, look at maximizing again to the point of
Speaker 4: where your employer matches. So you want you want to
Speaker 4: contribute there and then also look at at the roth
Speaker 4: Iray piece of it, because you do what you do,
Speaker 4: want to mix a mixture on that as well, and
Speaker 4: so that is that's that's what I've done in the
Speaker 4: past in terms of maximizing my four to one k
Speaker 4: contribution in addition to contributing to a roth iray. Because
Speaker 4: if you're roth ira your six thousand for this year
Speaker 4: grows to one hundred thousand thirty forty years later. You
Speaker 4: don't pay taxes anymore. I mean, like, how amazing is that?
Speaker 4: And that's the opposite is true for the four to
Speaker 4: one k that's pretax or the four fifty seven that's
Speaker 4: pre tax. So it's like it's it's those things like
Speaker 4: really figuring out what your goals are and understanding that
Speaker 4: that there is no right answer. It's just how are
Speaker 4: you looking at the tax strategy and the impact to
Speaker 4: your page.
Speaker 3: So yeah, the only wrong answer is to not contribute.
Speaker 3: We don't want that, you know, But.
Speaker 2: Yeah, so we are up that a little bit to
Speaker 2: a lot more, okay, Paula. So if you are enjoying
Speaker 2: this ba qa with my friend Jason V. Tug of
Speaker 2: Happy Money, Happy Life, the book. We're gonna throw a
Speaker 2: break real quick and stay here because we'll be right back.
Speaker 3: And we're back, and we're Brown. So we're in the
Speaker 3: studio with Jason V.
Speaker 2: Tug of Happy Money, Happy Life and his company Frugal
Speaker 2: Financial Educator but wholeness Educator overall. I have Jason and
Speaker 2: the stew and I asked him to stay and answer
Speaker 2: some questions with y'all, and so we're gonna take another one.
Speaker 2: If you actually want your question answered, you can go
Speaker 2: to Brownhambis podcast dot com and click like to Ask
Speaker 2: Us Anything button and you know, send us a message.
Speaker 2: That way, you can slip into our DMS on It's
Speaker 2: the BA podcast I Believe on Twitter and brand Ambision
Speaker 2: podcast on Instagram and slip into the DM and ask questions.
Speaker 2: That way. You can give us your real name, you
Speaker 2: can give us a fighting name, you can say anonymous,
Speaker 2: and we will honor all of that. But ask your
Speaker 2: personal finance questions, your career questions, and your business questions.
Speaker 2: We will answer all of those, all right, So we're
Speaker 2: going to take another money question. Hi, Tiffany, Mandy, and Jason.
Speaker 2: The Jason is silent, but I'm putting it in there.
Speaker 3: I wanted to get.
Speaker 2: Your input on the idea of using equity from my
Speaker 2: home to purchase a property for the intent of long
Speaker 2: term rental. What are your Recommendationonson, Jason, You've owned some
Speaker 2: like have you owned some rental property?
Speaker 4: I have not owned rental property, but I do read
Speaker 4: up on it, and I do have family members that
Speaker 4: have rental property, and this question comes up all the time.
Speaker 4: So hearing this, I think I have a viewpoint on it.
Speaker 4: So one, having equity in your property, that's a great thing.
Speaker 4: And so you definitely want to do the calculations to
Speaker 4: make sure that the investment that you're making with this
Speaker 4: rental property is going to pan out for you. And
Speaker 4: so if you're looking at tapping the equity of your
Speaker 4: primary residence, your home, your space for a rental, you
Speaker 4: want to make sure that it will eventually lead to
Speaker 4: a positive financial result. And I have seen many situations
Speaker 4: where it does not. Then all of a sudden, it
Speaker 4: endangers your primary residence. And so the other answer I
Speaker 4: would say is that it does make sense because if
Speaker 4: you're looking at you don't have the down payment or
Speaker 4: it's a sizable equity, and you could buy this rental
Speaker 4: property in cash. There is a lot of upside when
Speaker 4: it comes to that, and again it depends on the
Speaker 4: amount that you're looking to borrow against your home and
Speaker 4: where this property is, and if you've done the homework
Speaker 4: in terms of like what the return would be when
Speaker 4: you're renting this property out.
Speaker 2: Okay, so I consider this. So I have not done this,
Speaker 2: but I consider this. During the pandemic, when the home
Speaker 2: prices were Christie, I was going to do a cash
Speaker 2: out ref five, right, is that what's called cash back,
Speaker 2: cash out, cash out recap. So that's basically when you
Speaker 2: refinanced your home, almost like buying your home from yourself,
Speaker 2: and then take out the excess money.
Speaker 3: They won't let you take out all of it. They're like,
Speaker 3: ur you tried it. I think they let you take
Speaker 3: up to sixty percent or something like that.
Speaker 4: Yeah, you know, there's a percentage.
Speaker 3: So so my home was paid off.
Speaker 2: So basically I would go from no mortgage to a
Speaker 2: mortgage and then I was going to use that money
Speaker 2: to purchase another property, which that's not unwise, but to
Speaker 2: Jason's point, it would be unwise if you're purchasing a
Speaker 2: property that you're not sure am I going to get
Speaker 2: a positive cash flow because one, now your mortgage is
Speaker 2: going to be more expensive if you didn't have or
Speaker 2: you're going to have a new mortgage if you didn't
Speaker 2: have one before. And then on top of that, there's
Speaker 2: this new property that has to pay for itself.
Speaker 3: And let's just say you don't get a.
Speaker 2: Tenant right away, and so you're gonna be paying basically
Speaker 2: two mortgages until you figure it out, you know so,
Speaker 2: but it is one of the benefits of home ownership
Speaker 2: is the ability to do so.
Speaker 3: A home can be used as leverage.
Speaker 2: So I want you to think of a lever as
Speaker 2: something that helps to open something much bigger than itself.
Speaker 3: Like a doorknob is a lever to a door. You know,
Speaker 3: Like a door is huge.
Speaker 2: And oftentimes very heavy, but this little doorknob, you know,
Speaker 2: you can use this doorknob to open this door. And
Speaker 2: a home can do that too, because when you own
Speaker 2: a home, you know, you actually you know, you can
Speaker 2: put down three and a half percent on one hundred
Speaker 2: thousand dollars property.
Speaker 3: That's thirty five hundred dollars.
Speaker 2: So that's this little lever to get access to all
Speaker 2: this money, which can be good but also dangerous. If
Speaker 2: you're not wise and so you know, to Jason's point,
Speaker 2: then you know if you're going to do this, which
Speaker 2: is it can certainly be a very wise tool to
Speaker 2: say I want access to another property and I can
Speaker 2: use my current property to do so. But you want
Speaker 2: to make sure that you know that you want do
Speaker 2: more research on what.
Speaker 3: It is to rent. There are numbers, like calculations.
Speaker 2: One of my friends, Christina is like a big investor
Speaker 2: in Saint Louis, and she's got like this number calculation
Speaker 2: that she does to see if this rental property is
Speaker 2: going to make financial sense and when one year, two year,
Speaker 2: five years, you know what I mean. And so you
Speaker 2: want to make sure that you're not just saying I
Speaker 2: think this has a good idea.
Speaker 3: Let me move forward.
Speaker 2: That you've done the numbers on the new property and
Speaker 2: it offsets the cost of the other property. You know,
Speaker 2: so you know, honestly, Paula, this is Paula. I can't remember
Speaker 2: this anonymous I think, I think, yeah, it's anonymous, anonymous,
Speaker 2: So honestly anonymous, I think that you know it's not
Speaker 2: a bad idea as long as you are doing running
Speaker 2: your numbers. That's with all things investing you have to
Speaker 2: run your number, run your numbers, fun the numbers. Let's
Speaker 2: just take one quick last question, real quick. This is
Speaker 2: just a question for me for Jason. So, Jason, you
Speaker 2: left corporate. We get this a lot. You left corporate
Speaker 2: and you went to start your business. Give us maybe
Speaker 2: just a tip or two that for those people who
Speaker 2: are like especially now with so many people losing your
Speaker 2: jobs in the tech sector and it's just feeling so overwhelming,
Speaker 2: and many of them maybe they have this like business idea,
Speaker 2: they're not really sure. What are some things that before
Speaker 2: they take the leak or unfortunately before they get let go.
Speaker 3: What should people do to.
Speaker 2: Prepare emotion only mentally, but also financially for the shift
Speaker 2: from working in corporate America to potentially working for themselves.
Speaker 3: Yeah.
Speaker 4: I love this question because the first thing we'll tackle
Speaker 4: the financial aspect of it. You need a emergency fund
Speaker 4: or what I call the freedom fund. You need a
Speaker 4: fund that can cover six to nine months of your
Speaker 4: basic living expenses. So this doesn't mean six to nine
Speaker 4: months of your current income. This is six to nine
Speaker 4: months of your basic living expenses, housing, food, medicine, and
Speaker 4: things like that. You need that in order for you
Speaker 4: to kind of just function and society and also for
Speaker 4: you not to have to run to find the next job.
Speaker 4: So for me, when I quit corporate, I actually had
Speaker 4: a sizeable fund and that had a lot to do
Speaker 4: with me not buying property. Instead of me putting in
Speaker 4: the down payment in the home, I had access money
Speaker 4: that I could use towards paying my monthly obligations. And
Speaker 4: so that is financially, you need to be set six
Speaker 4: to nine months of your basic living expense is saved
Speaker 4: a way, not invested in the market. I'm one of
Speaker 4: those old school you need accessible liquid cash and that
Speaker 4: because emergencies happen right to not a matter of if
Speaker 4: when they happen, and if you are let go or
Speaker 4: if there are changes in your situation, you need access
Speaker 4: to money to help you pay for these necessities. Now,
Speaker 4: preparing mentally and emotionally, I mean become leaving the corporate
Speaker 4: world and pursuing your entrepreneur goals, It's going to take
Speaker 4: a mental toll on you, and that has a lot
Speaker 4: to do with you like finally believing in yourself enough
Speaker 4: to kind of make this leap, and then when things
Speaker 4: doesn't go the way you've envisioned it, well, that's going
Speaker 4: to take a mental toll, and that's going to affect
Speaker 4: your ability to kind of see the opportunities that presents itself.
Speaker 4: So one for anyone who is experiencing this transition, whether
Speaker 4: forced or chosen, I want you to prepare yourself mentally
Speaker 4: by what reassessing reevaluating your current skill set. That's kind
Speaker 4: of one of the key things. That's kind of like
Speaker 4: you're looking at your resume and going, how can I
Speaker 4: And this is interesting, right because I want to be
Speaker 4: an entrepreneur. Why do I need to redo my resume? Well,
Speaker 4: you need to understand your skill set. You need to
Speaker 4: understand your experiences because you're gonna you're gonna uncover places
Speaker 4: and gaps and then you may now want to tap
Speaker 4: into your network of friends and entrepreneurs to help you
Speaker 4: fill in those gaps. So work on that and that's
Speaker 4: going to help you feel better about making this shift.
Speaker 4: It's going to help you feel better about going after
Speaker 4: for the next job if you're looking at maintain you
Speaker 4: going from one job to the next stepending on your
Speaker 4: situation and emotionally too, I mean, allow yourself if you've
Speaker 4: been let go and there's a lot of people who
Speaker 4: been let go, and a lot of the people who
Speaker 4: are making the leaps on the base on their own faith.
Speaker 4: Allow yourself the space and grace and time to grieve
Speaker 4: losing the job or shifting from being so career focused
Speaker 4: in the corporate world into the entrepreneurial purposeful path, because
Speaker 4: there is a grieving period when it comes to that,
Speaker 4: because our identity is so tied to it. So I
Speaker 4: want you to take a moment to rest, to reset,
Speaker 4: and let your body kind of readjust to the new
Speaker 4: normal that you're trying to create. Because what I find
Speaker 4: is that people who have been laid off and they
Speaker 4: may get a severance package, or they may have unemployment
Speaker 4: benefits or a savings account, they jump right into a
Speaker 4: new job, or they jump right into entrepreneurship, and then
Speaker 4: they're feeling the same strains. They're feeling the same constraints,
Speaker 4: and so you need to take a moment of pause.
Speaker 4: So that's kind of one thing for your mental health,
Speaker 4: your emotional being. Take a moment of pause. And typically
Speaker 4: that's doable because we have a financial safety net.
Speaker 2: I love that, Jason, you have the best if you
Speaker 2: are wanting to holistically navigate your personal finances, Jason has
Speaker 2: this awesome book, Happy Money, Happy Life, where he guides
Speaker 2: us through how to do so through the lens of
Speaker 2: these eight dimensions.
Speaker 3: Can you mention those eight dimensions, Jason?
Speaker 4: Yeah, the eight happy dimensions their mental, emotional, physical, spiritual, social, environmental, occupational,
Speaker 4: and financial.
Speaker 2: So Jason walks us through those dimensions and through the
Speaker 2: lens of personal finance. It's called Happy Money, Happy Life.
Speaker 2: You can purchase it at Happy Money, happylifebook dot com.
Speaker 2: Jason's awesome. If you have not listened to the prior episode,
Speaker 2: do it. That's your homework.
Speaker 3: Jason. Where can they find you?
Speaker 2: You know, we know where we can find your book,
Speaker 2: but where can they find you if they want to
Speaker 2: follow you or connect with you?
Speaker 4: Yeah, you can find me on Instagram and Twitter. I'm
Speaker 4: active in those spaces at Jason v tug and also
Speaker 4: on LinkedIn awesome.
Speaker 3: V tug, b I t ug.
Speaker 2: His stuff will be the link to the book, Happy Money,
Speaker 2: happylifebook dot com and Jason's especially his Instagram where he's
Speaker 2: really active.
Speaker 3: They'll be in the show and notes.
Speaker 2: So give a hollefo dollar honey. Thank you, Jason, You're
Speaker 2: really awesome. Thank you for thank you for me and
Speaker 2: my friend.
Speaker 4: Well, thank you so much. I'm honored to be your
Speaker 4: friends of me.
Speaker 2: I was gonna say thank you for being a friend
Speaker 2: travel around the world.
Speaker 3: Is that Golden Girl though, that's not going back again.
Speaker 3: But the hottest to.
Speaker 2: You a pal and a hold that is Golden Girls.
Speaker 2: I remember I tried to put Mandy up on Golden Girls.
Speaker 2: She was like, who, I said, girl, get off my line?
Speaker 2: Maybe like Golden Girls.
Speaker 4: I said, Golden Browns. Okay, the Golden Browns.
Speaker 3: Golden Broth. Thanks again, Jason, BYBA fan. We will see
Speaker 3: you next week.
Speaker 1: Hey, Ba fam, we could not do this show without
Speaker 1: your support or the support of our team behind the scenes.
Speaker 1: The Brown Emission podcast is produced by Cumulus Podcast Network.
Speaker 1: It's edited by the wonderful Emani Crosby and produced by
Speaker 1: Tanya Bustos. Dennis Stimplinsky is our in house tech guru,
Speaker 1: and I am Bandy Woodard Santos your co host, and
Speaker 1: I will see y'all next week.