WEBVTT - BA Q&A: How To Use A HELOC ft. Farnoosh Torabi 0:00:06.160 --> 0:00:09.799 It's time forward. The b a qa A to b 0:00:09.960 --> 0:00:12.800 a q a with tiffand a to b a qa 0:00:13.039 --> 0:00:16.560 no man d the b a qa with for news 0:00:16.640 --> 0:00:21.360 to rabe out and why Honestly every time man, he's 0:00:21.360 --> 0:00:23.840 not here, the person is sitting there. Somehow I figure 0:00:23.840 --> 0:00:25.880 out a way to rhyme. Okay, somebody needs to sign 0:00:25.960 --> 0:00:27.280 me to a deal. Okay, so. 0:00:29.080 --> 0:00:31.160 In the student that shouldn't that should not be hard. 0:00:31.200 --> 0:00:35.720 You're Tiffany, Well, I'm super excited because I have for 0:00:35.840 --> 0:00:37.959 news to Robbie in the stew today. She is one 0:00:38.000 --> 0:00:41.760 of America's leading personal financial authorities, hooked on helping you 0:00:41.880 --> 0:00:44.000 live your richest and happiest life. She's also a friend 0:00:44.000 --> 0:00:46.880 of mine. She's so dumpe. She's a multi best selling 0:00:46.880 --> 0:00:50.760 financial author, former c NBC host, and creator of the 0:00:50.760 --> 0:00:54.640 Webby nominated podcast So Money, which is an awesome podcast. 0:00:54.640 --> 0:00:57.280 If you're not listening to it, do it for News. 0:00:57.280 --> 0:01:00.000 Has become one of the country's favorite go to money experts. 0:01:00.680 --> 0:01:03.880 The New York Times actually calls her advice perfectly practical 0:01:04.560 --> 0:01:07.560 right so Farnush's award winning and critically acclaimed podcast, So 0:01:07.640 --> 0:01:12.560 Money has surpassed twenty five million downloads. That's a lot, 0:01:12.720 --> 0:01:14.959 just in case you didn't now and thanks to one 0:01:14.959 --> 0:01:18.000 of her kind interviews and deep conversations about money. On 0:01:18.040 --> 0:01:20.960 the show, she spopped lights leading experts and authors and 0:01:21.000 --> 0:01:26.360 influencers from Arianna Huffington to markrit Choe to the Queen herself, 0:01:26.480 --> 0:01:32.400 Latifa and Tim Gunn and me about their personal financial perspectives, 0:01:32.520 --> 0:01:36.600 money failures and habits. She also answers listeners personal financial 0:01:36.680 --> 0:01:38.440 questions each week where she's gonna help me do today. 0:01:39.080 --> 0:01:41.880 And she is the new author, well she's been an 0:01:41.920 --> 0:01:44.479 author four times over, but a new book called A 0:01:44.560 --> 0:01:48.040 Healthy State of Panic. And what's so awesome is like, 0:01:48.080 --> 0:01:50.440 if you're listening to this, that means the episode that 0:01:50.440 --> 0:01:52.120 we did a few days ago, a couple of days ago, 0:01:52.360 --> 0:01:54.800 it's all about Farnus, her new book, And honestly, I 0:01:54.840 --> 0:01:57.360 think you need to hear it, go back and listen 0:01:57.440 --> 0:02:00.200 to it because Farnuse really helps to turn fee you're 0:02:00.320 --> 0:02:02.280 on its head and how you can use it as 0:02:02.320 --> 0:02:04.919 a tool for you know, the things that you're seeking. 0:02:04.920 --> 0:02:06.320 And we're going to talk about it, you know, in 0:02:06.360 --> 0:02:08.480 this episode too, but with b a Qa. But I 0:02:08.560 --> 0:02:11.000 think I think you're gonna love that episode, so go 0:02:11.120 --> 0:02:13.640 listen to it. Welcome to the Too for News. 0:02:13.880 --> 0:02:16.160 Thank you, thank you for that generous introduction. 0:02:17.040 --> 0:02:18.359 Do you ever do you have you ever had like 0:02:18.400 --> 0:02:21.519 a nickname? Was it just always for news or likes? 0:02:22.040 --> 0:02:24.239 Oh news, okay, news like that? 0:02:24.440 --> 0:02:29.959 Heysh nushi, but I prefer nous. Okay, okay, you're you're 0:02:30.000 --> 0:02:33.239 you definitely you're allowed. It's like it's not like you 0:02:33.280 --> 0:02:35.239 don't need permission, but it's like if you know me, 0:02:35.320 --> 0:02:38.239 you know, and like I don't really share that with people. 0:02:38.000 --> 0:02:43.240 But now we are world. I know. Sometimes people like 0:02:43.240 --> 0:02:45.160 hate Tiff and I'm like, I mean I don't mind tif, 0:02:45.160 --> 0:02:47.920 but literally nobody who like, Oh, I'm trying to thing. 0:02:48.000 --> 0:02:49.600 Do people call me Tiff? Like my friends? 0:02:49.639 --> 0:02:53.280 I just texted you, I said, hay, Tiff because I 0:02:53.320 --> 0:02:55.920 feel like sometimes when you tell stories with yourself in it, 0:02:56.200 --> 0:02:59.200 you say Tiff. So then I thought maybe she likes that. 0:02:59.600 --> 0:03:00.560 Well I don't. 0:03:00.680 --> 0:03:03.480 I feel like I don't. Yeah, it's not like a thing. 0:03:03.600 --> 0:03:05.840 I'm like, it's I feel very neutral to it. Like 0:03:05.840 --> 0:03:08.120 if someone called me fifth, I'm like that's fine, you know, 0:03:08.120 --> 0:03:11.080 but it's not like oh, like yeah, but like my 0:03:11.120 --> 0:03:13.960 real nickname nickname because my African name is Adochi, and 0:03:14.000 --> 0:03:16.360 so my real nickname nickname is ado which is like 0:03:16.400 --> 0:03:18.519 the first half of Adochi. So like my nieces and 0:03:18.600 --> 0:03:21.840 nephew call me Auntie Utto, my sisters call me Utto, 0:03:22.360 --> 0:03:24.400 and so it's weird when my family calls me Tiffany, 0:03:24.919 --> 0:03:27.440 like you know, because it's like, who oh, that's right me. 0:03:28.080 --> 0:03:30.639 But yeah, so we have some I'm glad you're in 0:03:30.639 --> 0:03:33.480 a stocause we have some questions to answer today, and 0:03:33.880 --> 0:03:36.760 you know we could use your advice. So let's ce 0:03:36.880 --> 0:03:40.920 c cccc. I think okay, this one is anonymous. This 0:03:40.960 --> 0:03:44.800 is very exciting. So hello, I'm assuming they're singing is 0:03:44.880 --> 0:03:48.960 because they're Broadway actress. I'd like to remain anonymous if 0:03:48.960 --> 0:03:53.119 this question airs. It is girl, I'm a Broadway actress 0:03:53.120 --> 0:03:56.000 and I'm wondering how to say for retirement. One, A 0:03:56.480 --> 0:03:59.920 work is sporadic and b sometimes the work is w 0:04:00.040 --> 0:04:03.240 you to union work, and sometimes it is ten ninety 0:04:03.360 --> 0:04:06.040 nine gig work. How do you set up retirement when 0:04:06.040 --> 0:04:08.600 your work is generally temporary and sometimes not connected to 0:04:08.640 --> 0:04:11.640 a retirement package? What does setup look like? I would 0:04:11.680 --> 0:04:13.440 love oh yeah, and she would love to benefit from 0:04:13.440 --> 0:04:17.159 an artist series of people who don't hold your typical 0:04:17.240 --> 0:04:18.800 nine to five job, thank you for all that you 0:04:18.839 --> 0:04:21.680 do and creating this safe space, and so oh you 0:04:21.720 --> 0:04:23.839 mean like she would just love if me and Mandy 0:04:23.880 --> 0:04:26.400 did a series of like financial advice for people who 0:04:26.400 --> 0:04:28.359 don't have nine to five. Oh, that's actually a good idea. 0:04:28.960 --> 0:04:33.400 Let's see what should we call her? We'll just call 0:04:33.480 --> 0:04:38.120 you Broadway. Hey, Broadway. So well, let's say you our news, Like, 0:04:38.160 --> 0:04:41.560 you know, Broadway is like, girl, I'm thinking about retirement. Yeah, 0:04:41.600 --> 0:04:43.680 but I get this random money here and there. So 0:04:43.720 --> 0:04:45.280 what do you think she should do? Yeah? 0:04:45.400 --> 0:04:47.960 So I was really curious at one point about how 0:04:48.120 --> 0:04:51.800 much Broadway actors and performers earned, and I actually I 0:04:52.040 --> 0:04:53.640 pose that on my podcast because I was going to 0:04:53.640 --> 0:04:55.440 see Aladdin and I was like, oh my god, this 0:04:55.440 --> 0:04:59.200 this work is not light. You're working, you know, six 0:04:59.279 --> 0:05:02.560 days a week, sometimes two shows a day, right, so 0:05:02.839 --> 0:05:05.159 it's hard, and you can't have a side hustle, like 0:05:05.200 --> 0:05:07.719 you're not also investing in real estate or also have 0:05:07.800 --> 0:05:10.040 like a you know, passive income. These people have they're 0:05:10.080 --> 0:05:12.400 giving their lives and their livelihoods to their work. And 0:05:12.440 --> 0:05:15.160 so the idea of like, oh but they make about 0:05:15.240 --> 0:05:18.440 if you're a star on Broadway, you could make healthy 0:05:18.440 --> 0:05:21.960 six figures for that run. So I'm not going to 0:05:22.000 --> 0:05:24.520 assume that's what she's making. But even if you're whatever 0:05:24.520 --> 0:05:28.839 you're making, I think that for those who have inconsistent pay, 0:05:29.560 --> 0:05:32.680 when you have the pay, you have to commit to 0:05:33.360 --> 0:05:36.680 taking I would say more than average. I would say 0:05:36.720 --> 0:05:39.120 twenty to twenty five percent of that and putting it 0:05:39.160 --> 0:05:42.480 away towards investing, because there may be months where you're 0:05:42.520 --> 0:05:46.279 not earning, so your savings rate you're investing rate rather 0:05:46.640 --> 0:05:50.839 should be higher, but it's going to not be every month, right, 0:05:50.960 --> 0:05:53.960 and so you just have to kind of commit to that. 0:05:54.440 --> 0:05:57.040 And as far as where you're putting that investment, I mean, 0:05:57.040 --> 0:06:00.040 some of that money she said is coming through a 0:06:00.120 --> 0:06:04.560 job where there might be a retirement package, So start there, okay. 0:06:04.880 --> 0:06:07.640 And then if there's a job that's coming from work 0:06:07.680 --> 0:06:09.680 that she doesn't have, it like it's it's you have 0:06:09.720 --> 0:06:11.920 to open up a roth ira. That's like you can 0:06:11.960 --> 0:06:15.320 do that. You can have you know, a retirement account. 0:06:15.160 --> 0:06:17.200 Cause cause she has both, she can have like she 0:06:18.000 --> 0:06:19.239 retirement in a roth ira. 0:06:19.800 --> 0:06:23.240 Yes, yes, and I think a lot of people we 0:06:23.240 --> 0:06:27.039 should we should diversify our tax exposure in retirement because 0:06:27.040 --> 0:06:30.320 we know with a workplace retirement account typically that's you 0:06:30.400 --> 0:06:35.200 pay before taxes, so you're saving on taxes today versus 0:06:35.240 --> 0:06:38.200 a ROTH you pay after tax and so you get 0:06:38.200 --> 0:06:40.440 the you get a tax re withdrawal in retirement, So 0:06:40.920 --> 0:06:42.360 we don't know what our tax picture is going to 0:06:42.400 --> 0:06:44.159 be in retirement. Good to have a little bit of both. 0:06:45.360 --> 0:06:47.240 But yeah, I think for those of us, whether you 0:06:47.320 --> 0:06:49.520 work on Broadway or you just do some sort of 0:06:49.520 --> 0:06:53.640 other work where your pay is not consistent and your 0:06:53.680 --> 0:06:57.960 income is coming from different sources, it's leverage what's available 0:06:58.000 --> 0:07:02.000 to you, which is the workplace retirement account and or 0:07:02.040 --> 0:07:05.360 a traditional or RATH diary outside of that job, and 0:07:06.279 --> 0:07:08.800 just you have to be I think a little more 0:07:08.960 --> 0:07:11.960 vigilant than average workers that can just kind of like 0:07:12.040 --> 0:07:13.760 set it and forget it, you know, like I'm going 0:07:13.840 --> 0:07:16.440 to do ten percent, fifteen percent, I'm going to be 0:07:16.480 --> 0:07:19.120 at this job for you know, at least a year. 0:07:19.160 --> 0:07:21.040 I don't have to think about it, but it comes 0:07:21.120 --> 0:07:23.640 up more often, more frequently. For I think those of 0:07:23.720 --> 0:07:27.520 us who have more fragmented income, we have to be 0:07:27.600 --> 0:07:31.960 more has to be more top of mind unless of course, 0:07:33.000 --> 0:07:34.600 one more thing I'll say, unless, of course, you're at 0:07:34.640 --> 0:07:39.840 the point where you have some sort of baseline savings 0:07:39.880 --> 0:07:43.880 from which you're using to pay for your lifestyle. And 0:07:44.080 --> 0:07:46.840 you know, that's the ideal that when you have this 0:07:46.920 --> 0:07:49.520 sort of work that is disparate, the income is disparate, 0:07:49.840 --> 0:07:52.360 that you kind of save enough to the point where, 0:07:52.880 --> 0:07:55.480 even though there are gaps in how much when you 0:07:55.520 --> 0:07:59.480 get paid, your lifestyle does not like your cash flow 0:07:59.520 --> 0:08:02.800 does not change because you have that sort of foundational 0:08:02.840 --> 0:08:07.480 savings to support those months where you're not making the money. 0:08:08.600 --> 0:08:10.480 But you have to be you have to be extra 0:08:10.520 --> 0:08:12.720 committed to what you do with that paycheck. When you 0:08:12.720 --> 0:08:14.120 get the paycheck, I. 0:08:14.080 --> 0:08:16.040 Call it pay the pot. So like it's like when 0:08:16.040 --> 0:08:18.320 you first started working for yourself, it's like, no, no, 0:08:18.320 --> 0:08:20.160 no't pay me. Pay the pot so the pot can 0:08:20.160 --> 0:08:23.920 pay me a consistent income. Yes, yes, yes, okay. So 0:08:23.960 --> 0:08:26.440 what I'm hearing you say is like like, okay, so broadway, 0:08:26.480 --> 0:08:29.880 what I'm hearing Forarniche is like one like, yes, you 0:08:29.920 --> 0:08:31.720 want to set aside for a retirement, but you get 0:08:31.720 --> 0:08:33.920 to do both. And quite honestly, anybody can kind of 0:08:33.920 --> 0:08:37.440 do this. That your w two that you get from 0:08:37.520 --> 0:08:41.160 your union, ask hey, is there a retirement account available? 0:08:41.200 --> 0:08:43.480 My assumption is yes, I don't know, but you know, 0:08:43.520 --> 0:08:45.560 if you're getting W two, you can ask your union 0:08:45.600 --> 0:08:49.160 what's the retirement account that is available to me? Here? 0:08:49.559 --> 0:08:52.199 You know, put money there, and you're wanting to max 0:08:52.280 --> 0:08:56.480 because to Fernuc's point, since you're not you don't make 0:08:56.640 --> 0:08:59.240 regular money, you actually have to over index. Typically we 0:08:59.280 --> 0:09:01.559 tell people to to fifteen percent, but because you get 0:09:01.600 --> 0:09:04.480 money sporadically, you have to set aside more to cover 0:09:04.520 --> 0:09:06.800 the times that you don't. But then also have your 0:09:06.880 --> 0:09:10.480 your external retirement account which is typically like a WROTH 0:09:11.640 --> 0:09:14.240 and ideally if you can max that out too every year. 0:09:14.520 --> 0:09:16.400 So doing both will help you to have like a 0:09:16.440 --> 0:09:20.080 really healthy like retirement account where you get to get 0:09:20.080 --> 0:09:22.360 your tax benefits now and then some of your tax 0:09:22.400 --> 0:09:24.800 benefits later. ROTH lets you get your tax benefits later, 0:09:25.280 --> 0:09:28.719 and traditional IRA lets you get your tax benefits now 0:09:30.160 --> 0:09:33.000 and then also too, you know, learning to pay the 0:09:33.040 --> 0:09:35.560 pot like when you do get paid, like knowing that 0:09:35.720 --> 0:09:37.840 like I mean ideally because you might not make enough 0:09:37.920 --> 0:09:40.640 to support but ideally when you get paid, knowing that 0:09:40.679 --> 0:09:43.120 all this money is not my January money, is also 0:09:43.240 --> 0:09:45.720 potentially for October too, because I might not be working 0:09:45.760 --> 0:09:48.080 there and so pay the pot and let the pot 0:09:48.080 --> 0:09:50.840 pay you ideally consistently. Did I wrap it up good? 0:09:50.880 --> 0:09:51.520 Like what you share. 0:09:51.800 --> 0:09:55.840 Yeah. There's a book too that I want to recommend. 0:09:56.240 --> 0:09:59.360 And I'm trying to remember the name of the author. 0:09:59.480 --> 0:10:01.840 She was on your podcast and mine, I think, and 0:10:01.880 --> 0:10:06.400 it was about tipping, but it was so her. 0:10:06.720 --> 0:10:09.200 I'm sure Barbara, Okay it was. 0:10:09.240 --> 0:10:10.160 Her name is Barbara Hold, And. 0:10:10.120 --> 0:10:13.000 We're gonna I'm gonna say, yeah, I'm like, look it up. 0:10:13.080 --> 0:10:15.480 Yeah, So here we go. It's also a really good book. 0:10:15.640 --> 0:10:19.600 It's called Tipped, and it's by Barbara Sloan, who's been 0:10:19.600 --> 0:10:23.360 on my podcast. She's a financial expert, and she writes 0:10:23.400 --> 0:10:26.400 about achieving financial freedom for people who have who work 0:10:26.440 --> 0:10:30.360 in the service industry, who may not have consistent income 0:10:30.520 --> 0:10:33.400 or really I mean, the book is dedicated to those 0:10:33.440 --> 0:10:37.520 of us who thrive on tips, but I think there's 0:10:37.559 --> 0:10:40.240 a lot of gems there, even for those of us 0:10:40.320 --> 0:10:43.720 who work maybe sporadically. Maybe we're not we don't consider 0:10:43.720 --> 0:10:46.440 our self service industry, but we do have what is 0:10:46.520 --> 0:10:52.160 sometimes in consistent pay or seasonal work. And Barbara really 0:10:52.200 --> 0:10:56.080 walks you through how to streamline that so that you're 0:10:56.080 --> 0:10:59.800 not feeling like there are months where you're going without 0:11:00.520 --> 0:11:03.040 that you to your point, you've done enough where you've 0:11:03.080 --> 0:11:06.520 paid the pot, and whether you work in January or 0:11:06.600 --> 0:11:10.920 November or September, that it's all going to fuel this 0:11:11.040 --> 0:11:14.840 sort of cycle that you've created and is going hummingly. 0:11:15.600 --> 0:11:18.240 Okay, I love it. We're gonna take a real quick 0:11:18.360 --> 0:11:20.800 break and come back with our second question. Plus I 0:11:20.800 --> 0:11:23.040 want to learn more about this healthy state of panic. 0:11:23.080 --> 0:11:24.559 What's just all about? You know what I'm saying. So 0:11:24.679 --> 0:11:26.720 we'll be back in one minute. Well I don't know 0:11:26.720 --> 0:11:33.000 about one minute, but we'll be back, and we're back. 0:11:33.040 --> 0:11:37.360 You know, I forgot to do the disclosure, y'all know me, me, me, me, 0:11:38.080 --> 0:11:40.640 see your grandma, not us. So this advice is not 0:11:40.720 --> 0:11:43.680 to be taken with anything less than the super grayness 0:11:43.679 --> 0:11:46.040 of grayness of salts. What does that mean? That means 0:11:46.280 --> 0:11:49.000 neither myself are ot News or your financial advisor. We're 0:11:49.040 --> 0:11:51.360 not your attorney, we're not your doctor. We are just 0:11:51.440 --> 0:11:55.240 your fun and fabulous financial internet cousins. We're just shooting 0:11:55.280 --> 0:11:58.679 the breeze. So you're gonna hear the advice, then you're 0:11:58.720 --> 0:12:01.240 going to run by the people that you pay, which 0:12:01.280 --> 0:12:03.640 is not us, and then you gotta use your advice 0:12:03.760 --> 0:12:05.920 based upon you know, like that advice that you give 0:12:05.920 --> 0:12:09.040 from those folks. Okay, so remember this is really made 0:12:09.200 --> 0:12:12.480 for you know, just a little bit entertainment that certainly 0:12:12.480 --> 0:12:15.640 you know, this is not advice that you're supposed to 0:12:15.679 --> 0:12:17.840 just take and do exactly what we say. So hopefully 0:12:17.880 --> 0:12:20.520 that it's helpful. See what I did there, because I 0:12:20.559 --> 0:12:23.000 was like, oh, there was a little fear because I'm 0:12:23.040 --> 0:12:25.240 like child, Yeah. 0:12:24.559 --> 0:12:28.240 You know, fear got me some insurance the other day. 0:12:28.600 --> 0:12:31.920 Oh so yeah, oh so like like like insurance for 0:12:31.960 --> 0:12:33.440 yourself or insurance, well for. 0:12:33.360 --> 0:12:36.480 The business, Like I'm an LLC, I'm an escorp, and 0:12:36.640 --> 0:12:39.040 so it's not to be assumed, but if somebody sues me, 0:12:39.200 --> 0:12:42.960 I will have some you know, legal recourse. So I 0:12:43.640 --> 0:12:46.680 somehow I've gotten I mean, I guess because I don't 0:12:46.720 --> 0:12:48.880 people don't listen to me or what because I've gotten 0:12:48.920 --> 0:12:50.360 twenty years and no one's ever tried to sue me. 0:12:50.400 --> 0:12:53.320 Knock on wood, but I have seen it happen, and 0:12:53.520 --> 0:12:55.560 I got like a little spooked, and I was like, 0:12:55.640 --> 0:12:59.600 I'm gonna just get some you know, liability insurance. 0:13:02.360 --> 0:13:04.200 You know? Is it? You know? Like, what is it? 0:13:04.240 --> 0:13:07.240 They have errors and omissions. 0:13:07.280 --> 0:13:10.040 Errors and emissions, which this is not what I got, 0:13:10.120 --> 0:13:13.040 but I think it's it would include that. It's like 0:13:13.120 --> 0:13:16.640 sort of I have gotten errors and omissions insurance too, 0:13:16.640 --> 0:13:19.120 though in the past when I've worked with brands, they 0:13:19.160 --> 0:13:22.400 have asked me to get it because they require it. 0:13:22.720 --> 0:13:25.040 Yeah, So speaking of fear, so what I love this 0:13:25.120 --> 0:13:26.840 is such a great conversation, like before we answer our 0:13:26.840 --> 0:13:31.080 second question leads into your book. Like, so on the surface, 0:13:31.320 --> 0:13:33.360 it would seem that that kind of like that fear 0:13:33.400 --> 0:13:37.079 in general is a bad thing, But just in this 0:13:37.200 --> 0:13:41.360 quick conversation we had about getting insurance, it fear like 0:13:41.600 --> 0:13:43.360 had me thinking like, wait a minute, is my insurance 0:13:43.440 --> 0:13:45.280 up to date? Let me make sure. So fear really 0:13:45.400 --> 0:13:48.360 was like a wake up call to make a change 0:13:48.520 --> 0:13:50.719 that is to my benefit. And so I feel like, 0:13:50.800 --> 0:13:52.920 isn't that what your book is about? A healthy data panic? 0:13:53.800 --> 0:13:56.240 Well, thank you for that plug. Yes, it is all 0:13:56.320 --> 0:14:00.880 about how fear is turning you inward. And when fear 0:14:00.960 --> 0:14:04.840 shows up, your job is not to try to destroy 0:14:04.920 --> 0:14:07.520 it or try to pretend it's not there, because being 0:14:07.559 --> 0:14:10.560 fearless is what's cool. It's to say what are you 0:14:10.679 --> 0:14:13.360 doing here? What are you what? 0:14:13.640 --> 0:14:13.760 Like? 0:14:13.800 --> 0:14:17.520 Why are you here? And sometimes fears are irrational, but 0:14:17.920 --> 0:14:22.800 many times, especially when it involves questions around money and work, 0:14:23.120 --> 0:14:26.560 high stakes, it's there to try to protect us, to 0:14:26.600 --> 0:14:29.560 try to get us closer to a better answer, a 0:14:29.600 --> 0:14:33.280 better landing. And I mean, like I said on your 0:14:33.520 --> 0:14:37.160 show earlier, I think every time fear has shown up 0:14:37.200 --> 0:14:39.920 in my financial life, in my career, even if I 0:14:40.040 --> 0:14:43.880 found that the fear wasn't being honest with me, because 0:14:43.880 --> 0:14:46.560 sometimes fear can be dishonest with you, it's telling you 0:14:46.600 --> 0:14:50.680 a false story. But even just recognizing that has opened 0:14:50.720 --> 0:14:53.760 doors has been breakthroughs for me. So I've never been 0:14:53.760 --> 0:14:55.400 the kind of person who can just be like, oh 0:14:56.320 --> 0:14:59.080 shoe fear or I'm fearless, Like, I don't know, I 0:14:59.120 --> 0:15:03.000 can't do that. Also, what privilege is that to be 0:15:03.040 --> 0:15:05.360 able to like think that you could just walk through 0:15:05.400 --> 0:15:10.480 life without paying attention to fear. Yeah, because somehow you 0:15:10.480 --> 0:15:13.640 can afford all the consequences. I can't. I don't know 0:15:13.680 --> 0:15:18.520 anybody say for maybe a few people who cannot, who 0:15:18.520 --> 0:15:22.240 can just be take all the risks and afford all 0:15:22.280 --> 0:15:25.000 of the whatever comes on the other side of that risk, 0:15:25.240 --> 0:15:26.160 and so I. 0:15:26.080 --> 0:15:30.960 Think only only only toddlers, Like they're like, girl, whatever 0:15:31.000 --> 0:15:32.280 it is, she got it. 0:15:33.360 --> 0:15:38.320 But thank god toddlers have fearful adults around them, you know, 0:15:38.920 --> 0:15:40.440 that are putting up the baby gates. 0:15:40.880 --> 0:15:43.200 Oh my god, y'all kids are just I was watching 0:15:43.200 --> 0:15:45.720 this like random video on Instagram because I just like, 0:15:46.160 --> 0:15:48.240 because sometimes the world could be such a shit shoe, 0:15:48.280 --> 0:15:50.160 so I just love to watch like random funny memes. 0:15:50.520 --> 0:15:52.640 This poor boy he had like you know, these little 0:15:52.640 --> 0:15:56.080 capes on Superman cap or whatever, and he was like, Dad, look, 0:15:56.200 --> 0:15:58.640 he couldn't have been more than like four top of 0:15:58.680 --> 0:16:01.520 the steps. He jumped from the top to the bottom, 0:16:02.160 --> 0:16:04.680 and you can hear the thud boom and the way 0:16:04.720 --> 0:16:06.480 he got up like any old man, hold in his back, 0:16:06.760 --> 0:16:11.080 breathing heavy like. His dad was like, wait, I didn't 0:16:11.360 --> 0:16:13.040 I didn't know he's gonna jump down the steps like that. 0:16:13.480 --> 0:16:15.680 He was like. His dad was so calm, which is 0:16:15.680 --> 0:16:17.960 such a dad thing. He was like, don't don't let 0:16:18.000 --> 0:16:19.960 that cake gash your head up. That's what I say. 0:16:20.040 --> 0:16:23.240 He was like, he said, don't ever ever do that again. 0:16:23.440 --> 0:16:25.040 You are right, you are right, the little boys just 0:16:25.120 --> 0:16:33.120 leaning against the wall like because but what's so crazy 0:16:33.200 --> 0:16:36.000 is that because that baby was fear He was like 0:16:36.440 --> 0:16:39.200 he really did believe I have this cakear so clearly 0:16:40.160 --> 0:16:44.880 superman and so but to your point, like the fear 0:16:45.000 --> 0:16:47.000 of like you know, we put up those gates for them, 0:16:47.000 --> 0:16:52.960 but you know, because fearlessness actually is dangerous because that psychopathic. Yes, 0:16:53.360 --> 0:16:55.360 he didn't realize, like bro, you could have literally broke 0:16:55.360 --> 0:16:57.600 her neck because he didn't. So fearlessness, I mean as 0:16:57.680 --> 0:17:00.160 much as we like I always say, I was in 0:17:00.160 --> 0:17:02.760 our last episode that that Farnus is a near new 0:17:02.840 --> 0:17:04.680 pr agent for fear. 0:17:04.760 --> 0:17:08.920 I've rebranded it. I I you know, if that's what 0:17:09.040 --> 0:17:11.360 I go down, if that's on my tombstone, I would 0:17:11.400 --> 0:17:14.199 be a happy mama. Like I love the idea that 0:17:14.240 --> 0:17:15.560 we are giving fear a chance. 0:17:15.960 --> 0:17:20.280 Yes, because it will stop you from jumping down the stairs. 0:17:19.840 --> 0:17:23.359 It wants good for us, It wants good. It doesn't 0:17:23.359 --> 0:17:28.200 always present well because you know, it shows up as 0:17:28.320 --> 0:17:35.000 like just an annoyance or you know, a hurdle, and 0:17:35.040 --> 0:17:38.560 we don't like that. But it's maybe telling us to 0:17:38.640 --> 0:17:44.400 take a beat or ask ourselves some questions. Yes, and 0:17:44.440 --> 0:17:47.480 why are we afraid. Have you ever thought to ask 0:17:47.480 --> 0:17:51.280 yourself why you're afraid? And maybe there's some wisdom in that. 0:17:51.359 --> 0:17:55.080 Maybe you're not giving yourself enough credit, you know. I 0:17:55.160 --> 0:17:59.280 just think it's time. Time's up on being fearless. 0:18:00.560 --> 0:18:02.280 No jumping down the stairs because you have a cape. On. 0:18:02.720 --> 0:18:07.480 Speaking of being fearless, sometimes people get afraid about making 0:18:08.200 --> 0:18:11.359 certain financial choices. So we have a question from the 0:18:11.440 --> 0:18:16.320 I of the G and this person I'm gonna call 0:18:16.359 --> 0:18:23.000 her Home Equity. Home Equity asked hi. She said. At first, 0:18:23.040 --> 0:18:25.560 I want to thank you all caps so much, guys 0:18:25.560 --> 0:18:27.600 for being such a great resource for financial things. I 0:18:27.640 --> 0:18:30.720 love y'all. I love y'all too, Home Equity. I'm also OMG. 0:18:31.000 --> 0:18:33.200 I was so excited to see that my company partner 0:18:33.280 --> 0:18:37.480 with tiffany Oh during financial black Oh child, this must 0:18:37.480 --> 0:18:40.160 have been a while ago. Anyway, anyways, moving forward and forward. Okay, 0:18:40.880 --> 0:18:43.440 I remember gaining advice from tiffany way back from dream 0:18:43.480 --> 0:18:45.639 Catches the Facebook group, and I'm just in all the 0:18:45.720 --> 0:18:49.040 levels we reached. Oh thanks girl. To my question, my 0:18:49.119 --> 0:18:52.239 husband and I have a lot of miscellaneous debt and 0:18:52.320 --> 0:18:55.439 most of it is below a thousand to three thousand 0:18:55.440 --> 0:18:59.280 dollars except for one, and that is twenty thousand dollars. 0:18:59.640 --> 0:19:01.640 We are thinking that we should take out a home 0:19:01.680 --> 0:19:04.760 equity loan about eighty thousand dollars that will allow us 0:19:04.800 --> 0:19:09.320 to consolidate all of our credit card debt. Thinking like 0:19:09.520 --> 0:19:12.399 basically it totals around thirty five to forty thousand dollars 0:19:12.840 --> 0:19:16.199 and to the purchase of a secondary property. Okay, so 0:19:16.200 --> 0:19:19.240 she wants to take our money to cover the home 0:19:19.280 --> 0:19:22.959 equity line of a home equity line to cover the 0:19:23.000 --> 0:19:26.080 forty thousand dollars she owes plus to buy a second property. 0:19:26.600 --> 0:19:30.000 We pay out probably a little over onecam month for 0:19:30.080 --> 0:19:34.720 a minimum payments on the credit cards with different interest rates. 0:19:34.840 --> 0:19:37.600 We're thinking that with the home equity loan we could 0:19:37.640 --> 0:19:41.040 have a lower monthly payment and a lower rate, which child, 0:19:41.160 --> 0:19:45.800 I mean if you sent us to this in February anyway, 0:19:45.880 --> 0:19:48.640 But anyway, we're still going to answer this question. So 0:19:48.720 --> 0:19:52.000 here's a question overall, what are your thoughts about taking 0:19:52.040 --> 0:19:56.159 at home equity loans? Like what maybe first, because everyone 0:19:56.160 --> 0:19:58.160 doesn't know what that is? What is a home equity loan? 0:19:58.840 --> 0:20:01.240 You know, what are your thought about taking out and 0:20:01.800 --> 0:20:03.000 like how best to use it? 0:20:04.000 --> 0:20:07.440 Great question, and I think that she's got a healthy 0:20:07.680 --> 0:20:11.960 fear of this debt accumulating, just being on the interest 0:20:12.240 --> 0:20:15.919 treadmill to nowhere. And you know, I think that in 0:20:15.960 --> 0:20:18.720 this country, we demonize debt and we think, oh my god, 0:20:18.920 --> 0:20:21.320 taking out another form of debt to pay off debt, 0:20:21.359 --> 0:20:24.560 that's just like, you know, bad form. But I think 0:20:24.600 --> 0:20:26.880 this is a This could potentially be a good creative 0:20:26.880 --> 0:20:30.000 way to solve the credit card debt crisis that she has. Now, 0:20:30.520 --> 0:20:32.480 let's take a step back. What is a helock, a 0:20:32.520 --> 0:20:37.520 home equity line of credit or a home equity loan? 0:20:38.119 --> 0:20:42.320 Which are They have similarities and they have some important differences. 0:20:42.359 --> 0:20:47.159 The similarities are that this is credit that is or 0:20:47.240 --> 0:20:50.720 debt or a loan that is based on the equity 0:20:50.720 --> 0:20:53.280 that you have in your home. So if let's say 0:20:53.280 --> 0:20:57.280 you have a home that's worth three hundred thousand dollars, 0:20:57.600 --> 0:21:00.639 your mortgage is two hundred, you have a hundred thousand 0:21:00.680 --> 0:21:03.440 dollars in home equity, right, that's like what is if 0:21:03.440 --> 0:21:05.400 you were sell that house, that's what you would take out. 0:21:06.160 --> 0:21:08.760