WEBVTT - BA Q&A: Credit Card Etiquette 0:00:06.160 --> 0:00:09.520 It's time for the b a q a A. The 0:00:09.600 --> 0:00:11.960 b a q A What you say, The b a 0:00:12.280 --> 0:00:15.240 q A with Manda, The b a q A with Tippanda, 0:00:15.480 --> 0:00:22.599 the b a q Welcome back to Brown a Vision, 0:00:23.640 --> 0:00:25.800 Question and Answer. You have questions, We have some answers. 0:00:25.840 --> 0:00:28.880 Although we're not your attorney, your financial advisor, your therapist, 0:00:29.480 --> 0:00:33.680 your mama, but we are two very very smart Brown 0:00:33.720 --> 0:00:39.040 girls about money, career, business, entrepreneurship, so we'd love your questions. 0:00:39.040 --> 0:00:41.880 If you have a question, you can go to Brownibision 0:00:41.920 --> 0:00:43.880 podcast dot com and submit them there. 0:00:44.320 --> 0:00:45.360 You can also if you want. 0:00:45.200 --> 0:00:47.880 To be in in the stew as the young people 0:00:47.880 --> 0:00:51.559 say and sit in the hot seat, you can leave 0:00:51.640 --> 0:00:55.040 us a voice note via Instagram. Brown and Vision pod 0:00:55.600 --> 0:00:59.000 cast on Instagram. And yeah, we will potentially have you 0:00:59.000 --> 0:01:02.760 in the studio with us. We're gonna do money questions today, 0:01:02.840 --> 0:01:03.720 Mandra right. 0:01:03.720 --> 0:01:06.560 Yeah, we got some juicy ones and we're gonna go 0:01:06.640 --> 0:01:09.240 old school here and read them. These are some questions 0:01:09.240 --> 0:01:12.280 that were submitted through ig Let's kick off. There are 0:01:12.319 --> 0:01:15.520 a couple of debt questions today, which is one of 0:01:15.520 --> 0:01:18.560 our lovely one of our favorite topics, especially considering what's 0:01:18.560 --> 0:01:21.600 happening in the economy right now. So let's start with 0:01:21.800 --> 0:01:28.160 ig question number one from listener MSW. MSW says, Hi, ladies, 0:01:28.200 --> 0:01:30.760 can you both explain how it's hard to get rid 0:01:30.800 --> 0:01:33.640 of credit card debt during a recession? Is it because 0:01:33.680 --> 0:01:36.759 they increase the interest rates? Should we not use credit 0:01:36.840 --> 0:01:40.000 cards at all? Due to this? I'm getting emails about 0:01:40.000 --> 0:01:42.039 how I can double my points if I use my 0:01:42.120 --> 0:01:44.959 credit card and other deals like that. I love the 0:01:45.000 --> 0:01:47.840 podcast benefit since day one. Thank you, MSW. 0:01:48.560 --> 0:01:50.880 Oh MSW, are you a social worker because that's the 0:01:50.920 --> 0:01:53.440 social worker you know, MSW, exactly I can ask. 0:01:53.680 --> 0:01:54.240 Okay, I thought it. 0:01:54.240 --> 0:01:55.320 Sounded like kind of vaguely. 0:01:56.600 --> 0:01:59.720 You girl with the people said. 0:01:59.520 --> 0:02:01.320 They are trying anyone scentivise you to use your credit 0:02:01.400 --> 0:02:03.240 card because they make so much money off of these 0:02:03.320 --> 0:02:05.640 days billions. 0:02:06.040 --> 0:02:09.120 Yes, so for one, I'll take on the tod you 0:02:09.160 --> 0:02:10.919 not use your credit card, No, girl, If you pay 0:02:10.919 --> 0:02:12.560 your credit card off in full every single month, they 0:02:12.560 --> 0:02:13.960 ain't got to worry about a lot, you know, like 0:02:14.480 --> 0:02:17.920 that's not you know, that's not the issue paying off. 0:02:18.120 --> 0:02:22.200 So I, for example, finally joined the Big Girl money club. 0:02:22.240 --> 0:02:23.440 I don't know if I told you this manager that 0:02:23.440 --> 0:02:26.320 you know I have my my I think it's mostly 0:02:26.320 --> 0:02:29.080 my American Express card. I put like almost all my 0:02:29.120 --> 0:02:31.000 bills on it, and I paid off every month in full, 0:02:31.240 --> 0:02:33.959 and I have so many points as a result. But 0:02:34.000 --> 0:02:35.919 I was scared to join the big girl money club 0:02:36.400 --> 0:02:38.760 because even though I've been paying off my credit card 0:02:38.760 --> 0:02:41.760 in full, well, you know, like the club where people 0:02:41.800 --> 0:02:43.239 like put all their bills on their credit card so 0:02:43.280 --> 0:02:45.520 they can just use points, and they put them on 0:02:45.520 --> 0:02:47.640 their credit card because they paid off in full. You know, 0:02:47.720 --> 0:02:49.400 even though I've been paying off my credit card in 0:02:49.400 --> 0:02:51.960 full for like over ten years, I was scared to 0:02:52.080 --> 0:02:54.720 put my bills on my credit card, you know, because 0:02:54.720 --> 0:02:56.800 it's just like what if it's like girl, First of all, 0:02:56.840 --> 0:02:58.160 I live off ten percent of what I make. 0:02:58.360 --> 0:02:59.520 You're gonna be fine. 0:02:59.760 --> 0:03:02.560 So instead now as a result, you know, I use 0:03:02.600 --> 0:03:06.080 those points to upgrade when I fly to you know, 0:03:06.200 --> 0:03:07.920 to really for travel for me. 0:03:08.000 --> 0:03:08.640 I really love that. 0:03:09.639 --> 0:03:14.200 So using a credit card is not inherently bad. If 0:03:14.240 --> 0:03:16.000 you paid off in full every month, you don't have 0:03:16.040 --> 0:03:19.400 to worry about the rais and interest rates. But our 0:03:19.440 --> 0:03:23.080 friend Jerome not too long Gero Rome Powell not too 0:03:23.080 --> 0:03:27.760 long ago, right, he raised interest rates, right, mandra he did. 0:03:28.160 --> 0:03:30.880 I mean, they've been raising interest rate interest rates quarter 0:03:30.919 --> 0:03:34.200 after quarter, and they're doing this for a couple of reasons. 0:03:34.240 --> 0:03:38.320 Like y'all know, during the pandemic, y'all were getting stimmy's okay, 0:03:38.320 --> 0:03:40.960 we were getting stimulus checks. Not only that, but like 0:03:41.000 --> 0:03:43.160 the labor market was hot, hot, hot, We're getting big 0:03:43.160 --> 0:03:45.840 fat raises, a great resignation. Y'all were quitting your way rich, 0:03:45.880 --> 0:03:47.920 and I love it and I'm here for it. But 0:03:48.040 --> 0:03:51.800 because Americans suddenly had sitting on all these piles of cash, 0:03:51.840 --> 0:03:55.000 basically extra money in the bank, we were shopping. We 0:03:55.000 --> 0:03:58.120 were shopping a lot. We were shopping so much that 0:03:58.720 --> 0:04:01.800 supply chain is you started to be a problem and 0:04:01.840 --> 0:04:05.160 there literally wasn't enough stuff for as much appetite as 0:04:05.200 --> 0:04:08.240 we had. And that is what has been leading to inflation, 0:04:08.520 --> 0:04:13.440 which is like increased prices. But what's crazy is like, yes, 0:04:13.560 --> 0:04:15.680 inflation is to blame, because you know, there was more 0:04:15.720 --> 0:04:19.560 increased demand, but also you just see companies raising prices 0:04:19.600 --> 0:04:22.440 almost using inflation as an excuse to raise them. You know, 0:04:23.040 --> 0:04:26.320 because like even though inflation averages what like seven percent 0:04:26.400 --> 0:04:30.080 right now, you're seeing prices for you know, some products 0:04:30.240 --> 0:04:34.400 way more than just like seven percent more expensive. But anyway, 0:04:34.480 --> 0:04:38.479 So one way that the Federal Reserve is trying to 0:04:38.880 --> 0:04:41.440 control inflation, which is like a good thing they have, 0:04:42.040 --> 0:04:44.560 they have our best interests at hearts at heart, I think, 0:04:45.360 --> 0:04:48.600 is they start to raise the base federal funds rate, 0:04:48.760 --> 0:04:51.880 which does impact the cost of borrowing not just for 0:04:51.920 --> 0:04:55.360 you and me, but also big corporations as well. So 0:04:55.560 --> 0:04:57.800 one of the first ways that we feel it as 0:04:57.839 --> 0:05:01.760 consumers is in our credit card. So your interest rate 0:05:01.800 --> 0:05:04.760 on your credit card very likely goes up. Everyone's probably 0:05:04.800 --> 0:05:07.880 got a variable rate interest credit card. That's pretty much 0:05:07.880 --> 0:05:10.040 the only kind you can get these days, so it 0:05:10.080 --> 0:05:12.280 will go up when the rates go up. So if 0:05:12.279 --> 0:05:15.520 you haven't, go check your most recent credit card statement 0:05:15.920 --> 0:05:18.599 or your email and see what your rate is these days. 0:05:18.960 --> 0:05:22.120 Because you're right, it is getting increasingly more expensive as 0:05:22.160 --> 0:05:26.479 they raise rates to carry credit card debt. So yes, 0:05:26.600 --> 0:05:30.040 if you have credit card debt, I would absolutely encourage 0:05:30.080 --> 0:05:33.760 you to stop accruing additional debt and focus on paying 0:05:33.760 --> 0:05:38.160 it down because it's just getting more and more expensive yeah, 0:05:38.279 --> 0:05:42.680 to carry it. So that's your little mini inflation slash 0:05:42.680 --> 0:05:45.640 fed lesson for the day. I was looking like, what 0:05:45.720 --> 0:05:48.160 was the average APR right now, and it's a about 0:05:48.680 --> 0:05:53.520 it's over. Wait, let me check. It's twenty two point 0:05:53.640 --> 0:05:57.200 nine percent. Yes, because I remember. 0:05:57.000 --> 0:05:59.760 Getting credit card, it's like between twenty and thirty percent. 0:05:59.800 --> 0:06:02.640 Credit cards usually like range between. I mean, if you 0:06:02.640 --> 0:06:05.080 have excellent credit. I remember my Chase Good Time card 0:06:05.080 --> 0:06:07.719 when I got that, it was sixteen percent. That was 0:06:07.720 --> 0:06:08.920 back in the eight days when. 0:06:08.839 --> 0:06:12.239 Rates were really low, back in my twenty seventeen sixteen something. 0:06:12.040 --> 0:06:14.000 My last fourteen ninety nine. I remembered to think. 0:06:14.080 --> 0:06:14.880 I was look at me. 0:06:15.480 --> 0:06:18.039 It's still a lot, but you know, trying not to 0:06:18.040 --> 0:06:21.920 carry a balance. But I am someone who like I 0:06:21.960 --> 0:06:24.880 have I have been. I joined the Big Girl Club 0:06:24.920 --> 0:06:28.760 and like getting getting different cards for different like I 0:06:28.760 --> 0:06:31.279 have a Target Red card and I have my AMEX 0:06:31.360 --> 0:06:33.760 for shopping, and I have my Chase Good Time Card 0:06:33.800 --> 0:06:36.800 for travel and food, and I have a business credit card. 0:06:37.000 --> 0:06:39.279 So no, we have like four credit cards to track Tiffany, 0:06:39.320 --> 0:06:41.200 I have a confession to make. I was actually laughing. 0:06:41.240 --> 0:06:44.120 I was cracking up with Jamila's Sufranz. She's been on 0:06:44.160 --> 0:06:46.080 the show before. She's the co host of or the 0:06:46.120 --> 0:06:48.839 host of Journey to Launch. She and I were confessing 0:06:48.880 --> 0:06:51.800 to each other that we paid interest fees on our 0:06:51.880 --> 0:06:55.760 credit cards recently because we just forgot to pay them all. Yes, same, 0:06:56.440 --> 0:06:58.039 And I was like, I never did this when I 0:06:58.080 --> 0:07:02.960 was broke, but yeah, anyway, it's a dirty little secret. 0:07:02.960 --> 0:07:04.960 But yeah, it's getting expensive out here, so you have 0:07:05.000 --> 0:07:05.960 to be really careful. 0:07:06.480 --> 0:07:09.480 Yeah, So inherently should you not use credit cards at all? 0:07:09.600 --> 0:07:10.240 Not? I don't believe so. 0:07:10.600 --> 0:07:12.960 But you got to know yourself, right, It's like, if 0:07:12.960 --> 0:07:15.120 you know that, like you're not paying it off in full, 0:07:15.200 --> 0:07:17.600 and you're and you're you know, having like a little 0:07:17.600 --> 0:07:21.000 bit of a struggle, then you want to suspend. 0:07:21.000 --> 0:07:23.040 Or at least reduce the use of credit cards, you know. 0:07:23.640 --> 0:07:25.760 But if you're someone who was already paying them off 0:07:25.840 --> 0:07:29.520 in full every month, then I wouldn't concern myself, you know, 0:07:29.960 --> 0:07:31.400 you know so much like I don't. I couldn't even 0:07:31.400 --> 0:07:32.760 tell you that in my interest rates on my credit 0:07:32.760 --> 0:07:35.480 cards because why I pay them off in full, you know, 0:07:36.040 --> 0:07:39.400 every single month. And so yeah, so but I love 0:07:39.440 --> 0:07:41.040 this question. It was a really great one, Like, you know, 0:07:41.080 --> 0:07:42.800 so thank you Emma's w for what you do for 0:07:42.840 --> 0:07:45.600 the people. But also this is just a really great, 0:07:46.520 --> 0:07:48.440 really great questions. I think it's important for people to 0:07:48.520 --> 0:07:50.560 understand that. I think when people think that when the 0:07:50.560 --> 0:07:53.120 Feds rate raise the rates, Mandy, that people think that 0:07:53.200 --> 0:07:55.440 it's it's like the rate that they're raising is like 0:07:55.480 --> 0:07:58.440 the credit rating rate that we get as consumers. 0:07:58.480 --> 0:07:59.480 But it's like no, no, no, no. 0:07:59.360 --> 0:08:02.840 No, like it trickles down, you know, no, but meaning 0:08:02.920 --> 0:08:04.600 like you know, like Jerome Powell says, Oh, the new 0:08:04.680 --> 0:08:07.520 rate is you know, up you know, point five percent, 0:08:07.560 --> 0:08:10.040 and then your credit card interest rate is gonna be 0:08:10.120 --> 0:08:12.200 up point five percent. It's not that's not the rate 0:08:12.200 --> 0:08:15.280 that they're raising, but it trickles down, yes. 0:08:15.040 --> 0:08:17.360 And to us, you know, because there's really like the rate. 0:08:17.240 --> 0:08:19.840 For like like the big bank borrowers, Like that's what's 0:08:20.000 --> 0:08:21.600 happening there exactly. 0:08:21.680 --> 0:08:24.520 And it also leads into like auto loan rates obviously 0:08:24.600 --> 0:08:28.280 housing like mortgage rates are so incredibly And the funny 0:08:28.280 --> 0:08:30.440 thing is that and you know what. Shout out to 0:08:30.520 --> 0:08:33.680 the chief mortgage economist at my former company, lending Tree, 0:08:33.720 --> 0:08:36.400 ten Die cup Feeds say, bless his heart. He explained 0:08:36.400 --> 0:08:38.080 this to me. I would say no less than a 0:08:38.120 --> 0:08:40.960 dozen times, and I still don't remember why. But I 0:08:41.000 --> 0:08:44.840 do know enough to know that the federal rate increases. 0:08:44.880 --> 0:08:49.520 They don't directly impact mortgage rates, but indirectly they do. 0:08:49.640 --> 0:08:52.640 So they do, but it's not like a direct you 0:08:52.640 --> 0:08:55.080 know impact or whatever. Ten you have to explain to 0:08:55.080 --> 0:08:57.840 me again. But anyway, that's why housing is getting more expensive, 0:08:57.840 --> 0:09:01.120 your auto loans, your personal loans are getting more expensive, 0:09:02.200 --> 0:09:03.560 any kind of like consumer debt. 0:09:03.640 --> 0:09:05.200 Usually the only art like it's just got to be 0:09:05.240 --> 0:09:06.679 more pricey. Yeah. 0:09:06.840 --> 0:09:09.440 The only upside is like your savings rates will be 0:09:09.440 --> 0:09:12.720 going out rural. Yeah, so I think a couple percent. 0:09:13.200 --> 0:09:16.319 We're getting back to the heydays of your highyield savings accounts. 0:09:17.720 --> 0:09:20.840 Girl, it's like it's giving three point three three point seven. 0:09:20.840 --> 0:09:22.600 I'm leaving the ally I sawry. Yeah, like, girl, because 0:09:22.600 --> 0:09:23.760 you ain't paying as much as others. 0:09:24.160 --> 0:09:27.920 So I'm leaving. Ain't know, I don't know. We're switching 0:09:27.960 --> 0:09:30.640 over from Allah. You know, if you caught it, you 0:09:30.679 --> 0:09:31.000 caught it. 0:09:31.520 --> 0:09:34.959 But because I'm just like, yeah, because I'm not loyal 0:09:35.040 --> 0:09:36.079 pose what I got to be loyal for. 0:09:36.080 --> 0:09:38.679 I'm loyal to the coin who's paying better than access rates. 0:09:39.400 --> 0:09:40.199 And so I'm switching. 0:09:40.280 --> 0:09:42.559 And so that is the good thing that here's the 0:09:42.559 --> 0:09:48.120 thing about interest rates. Okay that what's important to understand 0:09:48.240 --> 0:09:51.120 is that depending on where you are in your financial journey, 0:09:51.960 --> 0:09:54.600 the raising of interest rates is a good or bad thing. 0:09:55.320 --> 0:09:57.720 If you're on this side of your financial journey where 0:09:57.720 --> 0:10:00.600 a debt is still prevalent and it's like, you know that, 0:10:00.760 --> 0:10:02.959 like you're just having a hard time with debt, then 0:10:03.000 --> 0:10:05.160 the raising of interest rates by the Fed is going 0:10:05.200 --> 0:10:06.600 to be a bad thing for you because you're going 0:10:06.679 --> 0:10:10.360 to have to contend with higher monthly payments overall. If 0:10:10.400 --> 0:10:12.720 you are on the side of your financial journey where 0:10:12.960 --> 0:10:16.360 you've minimized or totally eliminated debt and now you're saving 0:10:16.360 --> 0:10:20.360 and investing, then that's the side. Then the Fed's raising 0:10:20.400 --> 0:10:22.920 the interest rates is a good thing because you're like, ooo, 0:10:22.920 --> 0:10:26.360 who the money that I have saved actually is earning 0:10:26.400 --> 0:10:28.679 more money, and I have the potential to keep and 0:10:28.720 --> 0:10:31.240 make more. So depending and there's no judgment on where 0:10:31.240 --> 0:10:33.160 you are on what side, because we have both both, 0:10:33.200 --> 0:10:35.120 Manny and I have been on both sides, you know, 0:10:35.679 --> 0:10:38.080 and so like now I'm on the woohoo, you know, 0:10:38.080 --> 0:10:39.920 I'm finally on the side where like I don't have 0:10:40.000 --> 0:10:42.440 any debt, and so the raising of the interest rates, 0:10:42.440 --> 0:10:44.160 it doesn't concern me. If anything else, I'm like, hey, 0:10:44.240 --> 0:10:46.040 let me see how much I can squeeze out of 0:10:46.080 --> 0:10:48.960 my high yield savings account. So just keep that in 0:10:49.000 --> 0:10:52.800 mind that, like very often personal finance, something is not 0:10:52.840 --> 0:10:55.439 good or bad. Like credit cards. I don't believe that 0:10:55.440 --> 0:10:57.280 they're good or bad. It just depends on where you 0:10:57.320 --> 0:11:00.360 currently are with your finances and how you navigate them. 0:11:00.400 --> 0:11:05.040 And so you know, our desire, Mandy, as I desire, 0:11:05.080 --> 0:11:07.680 is to help you work towards the other side. 0:11:07.720 --> 0:11:08.600 When these things happen. 0:11:08.679 --> 0:11:11.520 It's good for you, you know, and as good as 0:11:11.520 --> 0:11:11.960 it can be. 0:11:12.080 --> 0:11:15.360 Yeah, yeah, it just sucks that with these rates, and 0:11:15.400 --> 0:11:18.720 like the market's always uncertain for some reason or another. 0:11:19.200 --> 0:11:22.400 But we're still seeing, like my portfolio is not giving 0:11:22.400 --> 0:11:24.040 what I would like to see. It's still down like 0:11:24.080 --> 0:11:26.840 ten percent my investments for the year. And the truth is, 0:11:26.880 --> 0:11:29.080 like a lot of companies, especially this is why we're 0:11:29.080 --> 0:11:31.680 seeing somebody layoffs in tech. Not to turn it into 0:11:31.720 --> 0:11:35.080 the career episode, but you know, tech relies on a 0:11:35.120 --> 0:11:39.200 lot of borrowing venture capital funding for their businesses. And 0:11:39.280 --> 0:11:41.720 when the cost of borrowing the money that these businesses 0:11:41.720 --> 0:11:44.319 are lending them and the money that businesses themselves are 0:11:44.320 --> 0:11:46.240 being lent, so they can give it to tech firms. 0:11:46.720 --> 0:11:48.520 When that gets more expensive, like it does when the 0:11:48.600 --> 0:11:51.520 rates go up, they like to give money to tech less. 0:11:51.559 --> 0:11:54.440 And so that's why tech is. You see them doing 0:11:54.520 --> 0:11:58.320 layoffs and being more heavily impacted by what's happening in 0:11:58.320 --> 0:12:02.920 the market. And yeah, in general doesn't love expensive borrowing. 0:12:03.040 --> 0:12:07.320 So yeah, it's it's a very complex picture in general. 0:12:07.360 --> 0:12:10.080 But do what you can pay down your debt. Look 0:12:10.080 --> 0:12:12.600 into like balance transfer credit cards. If you have a 0:12:12.640 --> 0:12:14.959 balance and you want to save some money, maybe you 0:12:15.000 --> 0:12:18.680 can find a zero percent interest like an intro offer 0:12:18.720 --> 0:12:20.920 that you can transfer your credit card to a different card. 0:12:21.000 --> 0:12:24.160 I did that last year, and it can buy you 0:12:24.240 --> 0:12:27.120 some time. And like, my dad just had to pay 0:12:27.120 --> 0:12:29.240 for a bunch of dental work and he got a 0:12:29.240 --> 0:12:32.800 personal loan at nine percent fixed rate, so that rate 0:12:32.840 --> 0:12:35.000 is not going to change and he can use that 0:12:35.120 --> 0:12:38.160 nine percent loan, which is much better than if he 0:12:38.200 --> 0:12:40.160 had had to put it on you know, credit cards, 0:12:40.440 --> 0:12:42.719 car or what he wanted to do, which was take 0:12:42.760 --> 0:12:45.200 money out of his baby four one K. I helped 0:12:45.280 --> 0:12:47.440 him just set up a couple of years ago. I 0:12:47.480 --> 0:12:51.920 was like down't touch it. Yeah, fun, fun times, but 0:12:52.920 --> 0:12:55.280 all right, ms W thank you for the question. Should 0:12:55.280 --> 0:12:57.960 we take a quick little break and be right back 0:12:58.000 --> 0:13:00.160 with another money question for the BAQ. 0:13:02.559 --> 0:13:06.320 And We're black and back. 0:13:06.880 --> 0:13:10.160 Second question comes from mss D d or it is 0:13:10.200 --> 0:13:14.760 a double D girl. That sounds like a lot anyway, Hi, ladies, 0:13:15.280 --> 0:13:18.400 love your show. Thanks girl. I spent the past few 0:13:18.480 --> 0:13:20.000 years focusing on paying off debt. 0:13:20.120 --> 0:13:22.280 Another debt question. Also, I was. 0:13:22.240 --> 0:13:25.719 Able to get my student loan discharged due to my disability. 0:13:26.280 --> 0:13:28.400 Actually would like to learn more about that double D. 0:13:29.280 --> 0:13:30.520 You know, like you don't have to give me, like 0:13:30.520 --> 0:13:33.040 you know all your business, but you know, how were 0:13:33.080 --> 0:13:34.960 you able to because lots of people are not able 0:13:34.960 --> 0:13:37.640 to do that? And I'm curious, she says. I work 0:13:37.679 --> 0:13:40.280 full time and I'm wondering what I should do next. 0:13:40.600 --> 0:13:43.040 I have credit cards that I pay off each month. 0:13:43.480 --> 0:13:45.480 I have an emergency fund, but of course I can 0:13:45.520 --> 0:13:48.360 always say more. I should probably focus on stashing away 0:13:48.400 --> 0:13:50.680 from my retirement. I don't want to work in corporate 0:13:50.720 --> 0:13:54.240 America forever. I just wanted your opinion on what's the 0:13:54.240 --> 0:13:58.720 most important. Thanks for you, Thank you for all, Thank 0:13:58.760 --> 0:14:01.240 you for all you both do. Girl, it's just a 0:14:01.280 --> 0:14:03.240 lot of words to thank you for all you both did. 0:14:05.040 --> 0:14:05.800 I problemse double D. 0:14:05.840 --> 0:14:06.280 I can read. 0:14:06.600 --> 0:14:11.840 So this is a really great question because it's funny, 0:14:11.920 --> 0:14:12.560 you know, because. 0:14:12.320 --> 0:14:14.360 Money can be dried and we go do with money. 0:14:15.360 --> 0:14:18.160 So this is a really great question, you know, because 0:14:18.840 --> 0:14:20.200 this is kind of like on the other side, this 0:14:20.280 --> 0:14:22.400 is you know, this is your super fortunate you know, 0:14:22.760 --> 0:14:24.800 all of a sudden, you know, student loan debt, which 0:14:24.800 --> 0:14:28.120 I'm sure with a heavy load, is gone, and now 0:14:28.120 --> 0:14:30.280 you have this excess monthly payment that you don't have 0:14:30.280 --> 0:14:33.320 to pay out. So it's like emergency fun stashing away 0:14:33.320 --> 0:14:38.160 for retirement, you know, like like what should she be doing? 0:14:38.200 --> 0:14:41.360 You know, she has got credit card debt still, so 0:14:41.440 --> 0:14:43.160 what say you manager to kick it off? 0:14:44.000 --> 0:14:46.120 I mean, it's Harvard out knowing exactly how much credit 0:14:46.160 --> 0:14:49.200 card debt she has. But I'm in the I'm kind 0:14:49.240 --> 0:14:51.240 of like, kind of greedy. I'm like, can you do 0:14:51.280 --> 0:14:55.480 a little bit of everything? Can you increase your retirement contribution? 0:14:55.560 --> 0:14:58.800 Because really you have more money, less money coming out 0:14:58.840 --> 0:15:01.800 of your paycheck each month, so put the money to work. 0:15:02.160 --> 0:15:06.080 And it sounds like maybe you haven't been saving for retirement, 0:15:06.080 --> 0:15:08.320 investing for retirement while you're paying down your debt. So 0:15:08.840 --> 0:15:12.760 I would prioritize that and then take some money and 0:15:12.880 --> 0:15:15.600 add to what you've been paying on your credit cards. 0:15:15.640 --> 0:15:18.560 You can pay those down faster. Those would be the 0:15:18.600 --> 0:15:20.720 priorities that I would have. And you do have an 0:15:20.720 --> 0:15:22.920 emergency fund, which is you know, which is great. You 0:15:22.920 --> 0:15:25.520 could be adding to it since you already have it. 0:15:25.560 --> 0:15:29.800 I would prioritize the retirement and credit card debt. 0:15:30.480 --> 0:15:32.160 I agree, because you have to think to yourself this 0:15:32.440 --> 0:15:36.440 right that, like Mandy just read earlier in the question, right, 0:15:36.480 --> 0:15:39.720 that credit card debt, I can almost guarantee that, unless 0:15:39.800 --> 0:15:42.360 you have a balance transfer card or whatever, that your 0:15:42.400 --> 0:15:45.920 interest rate lies somewhere between twenty and thirty percent. So 0:15:46.040 --> 0:15:48.520 the market is not yielding twenty or thirty percent. So 0:15:48.680 --> 0:15:51.480 even you know if you were to invest it, you'd 0:15:51.480 --> 0:15:53.960 still be losing because you're losing so much with the 0:15:53.960 --> 0:15:56.200 credit card debt that whatever gains will be a race 0:15:56.280 --> 0:16:00.400 by that loss. So I'd be focusing on credit debt. 0:16:00.440 --> 0:16:02.280 And normally I like for people to start with a 0:16:02.280 --> 0:16:04.560 snowball method. But for you, sus, since you got rid 0:16:04.600 --> 0:16:07.160 of this big lump sum with this student loan, I 0:16:07.240 --> 0:16:09.760 probably would look at the credit card debt with the 0:16:09.840 --> 0:16:13.040 highest interest rate first and really work on the avalanche method, 0:16:13.280 --> 0:16:17.720 especially as we go into this potential recession and interest 0:16:17.760 --> 0:16:20.320 rates are likely to continue to rise, so i'd pay 0:16:20.360 --> 0:16:22.360 off that credit well, I'd be putting some of it 0:16:22.400 --> 0:16:24.920 toward paying off that credit card debt, especially with the 0:16:25.000 --> 0:16:29.000 highest interest rate. And to Mandy's point, you know it 0:16:29.080 --> 0:16:31.680 is your younger self job to look after your older self, 0:16:32.040 --> 0:16:35.680 so you know i'd be looking if I can. Will 0:16:35.680 --> 0:16:37.600 this allow you to start to max out your retirement 0:16:37.600 --> 0:16:41.760 every year? Consider doing that or getting close to maxing 0:16:41.800 --> 0:16:43.440 it out, because you're right, you don't want to work 0:16:43.440 --> 0:16:46.600 anywhere forever, ideally unless you like to really love it. 0:16:47.320 --> 0:16:48.760 And then if there's anything left over. 0:16:49.040 --> 0:16:51.120 You know, I'm curious how much in the emergency fund 0:16:51.160 --> 0:16:53.360 that you have if you have your three to six 0:16:53.400 --> 0:16:56.200 months and I don't you know there is because you 0:16:56.280 --> 0:16:58.160 said like you could always save more, and I was 0:16:58.200 --> 0:17:00.480 going to, like, you know, be like girl, this actually 0:17:00.560 --> 0:17:01.720 you can actually oversave. 0:17:02.680 --> 0:17:04.040 Like I'm not gonna lie. 0:17:04.040 --> 0:17:07.640 I'm kind of in that oversaved category. Soce manager Loky Hockey, we. 0:17:07.600 --> 0:17:10.199 Have like a year. It's like, girl, why do you 0:17:10.640 --> 0:17:14.919 say I have over eight years with the saving saved. 0:17:14.400 --> 0:17:17.960 Which anything above that, I mean, I'm already being ridiculous 0:17:17.960 --> 0:17:18.960 because I'm like, girl. 0:17:18.920 --> 0:17:20.960 You do not need this money to save this much, but. 0:17:21.280 --> 0:17:23.080 It's for my own comfort. So I have a year's 0:17:23.080 --> 0:17:27.160 worth of expenses saved that let's just say I had 0:17:27.200 --> 0:17:30.600 five years. That's too much because four of those years 0:17:30.600 --> 0:17:33.720 at a minimum should be going and investing for wealth. 0:17:34.000 --> 0:17:36.720 Because if I'm maxing out retirement, I don't have debt, 0:17:37.000 --> 0:17:40.520 my emergency fund is fully funded. That excess money should 0:17:40.560 --> 0:17:43.159 really be invested in for wealth. That is what the 0:17:43.160 --> 0:17:45.480 excess money is for. And so if you are in 0:17:45.520 --> 0:17:48.000 a place where there's still money left over because I 0:17:48.000 --> 0:17:51.040 don't know how much your your student loan payment was, 0:17:51.320 --> 0:17:54.639 that you should consider starting to invest for wealth because 0:17:54.680 --> 0:17:57.119 you have your reach. You're on the other side of 0:17:57.200 --> 0:17:59.560 like maintenance of money, and you're on the side of 0:17:59.560 --> 0:18:03.359 really growth of money. Because retirement investing is not the 0:18:03.400 --> 0:18:07.639 same thing as wealth investing. Retirement investing is investing for 0:18:07.840 --> 0:18:10.920 to maintain your current lifestyle. You know, Like I know 0:18:11.000 --> 0:18:12.960 they show you the commercials was like retire, you'll be 0:18:12.960 --> 0:18:15.080 on the island. No, I need you to look around 0:18:15.119 --> 0:18:18.399 your life. Now, hey, life, If I set aside this, 0:18:18.480 --> 0:18:19.560 how I'm going to continue to live? 0:18:20.240 --> 0:18:22.560 Yeah, which is fine, you know what I mean. You know, 0:18:23.280 --> 0:18:24.639 it's better than cat food, you know. 0:18:24.880 --> 0:18:28.320 So that's what retirement investing for retirement is to maintain 0:18:28.359 --> 0:18:30.800 your current lifestyle and if you can. That's why it's 0:18:30.840 --> 0:18:33.360 the bear bones basic. So if you've done these bear 0:18:33.400 --> 0:18:36.120 bones basics, then you have money left over, then consider 0:18:36.480 --> 0:18:38.560 like setting aside to invest for wealth, because then you 0:18:38.560 --> 0:18:41.879 can elevate your current lifestyle and then also elevate your 0:18:41.920 --> 0:18:43.439 your your lifestyle in the future. 0:18:43.960 --> 0:18:46.840 So so no believe, I was just thinking about the 0:18:46.880 --> 0:18:50.000 fact that she says she has a disability. Obviously don't 0:18:50.040 --> 0:18:53.280 have more specifics on what that disability is. But it 0:18:53.320 --> 0:18:55.879 may even be more important for you to be setting 0:18:55.920 --> 0:18:59.040 aside money for your future self because you may need 0:18:59.119 --> 0:19:03.639 additional health care, you know, support, And to that, I 0:19:03.680 --> 0:19:06.199 would say look into if you have an HSA, a 0:19:06.200 --> 0:19:09.359 health savings account that you can put as part of 0:19:09.400 --> 0:19:12.000