WEBVTT - BA Q&A: How Do I Prepare For A Recession? 0:00:06.400 --> 0:00:09.720 It's time full the b a q a a, the 0:00:09.800 --> 0:00:10.880 b a qep. 0:00:10.800 --> 0:00:16.079 A Okay, the big a qa hey brown ambition question 0:00:16.160 --> 0:00:20.040 to answer where you have questions and we have answer ish. 0:00:20.160 --> 0:00:23.480 We're just two smart brown girls who are just sharing 0:00:23.520 --> 0:00:27.080 our opinion. But we are not your attorney, we're not 0:00:27.160 --> 0:00:30.720 your certified financial planner, we're not your accountant, so certainly 0:00:30.760 --> 0:00:33.480 reach lean into them for the final say. 0:00:33.640 --> 0:00:35.960 But you know, we have a little suy here too. Okay, 0:00:36.720 --> 0:00:39.519 we know some stuff. We definitely know some stuff. All 0:00:39.960 --> 0:00:42.720 career and money questions, y'all continue to hit us up 0:00:42.760 --> 0:00:45.680 with those. Go to Brandimission podcast dot com click ask 0:00:45.760 --> 0:00:47.600 us anything, or you can just hit us up directly 0:00:47.640 --> 0:00:50.800 send us a DM. We are at Brandabission Podcast on 0:00:50.880 --> 0:00:54.920 the gram also Brandamission Podcast at gmail dot com dot com. 0:00:55.000 --> 0:00:57.680 You will be taking your questions. Give us a fun 0:00:57.760 --> 0:00:59.480 name though, you know, if you want to be anonymous, 0:00:59.480 --> 0:01:02.200 give us little pen name, the pseudonym you wish you 0:01:02.280 --> 0:01:04.560 had that you used for all your you know, your 0:01:04.640 --> 0:01:06.720 childhood fan fiction on the internet. 0:01:06.480 --> 0:01:10.520 Sick name Sally, okay, or like Big Booty Judy. 0:01:10.720 --> 0:01:15.800 I'll never know my fan fiction pen name. Never. Well, 0:01:15.880 --> 0:01:18.160 let's get into we got some fun money questions today. 0:01:18.240 --> 0:01:24.800 You excited? I am. Let's start with listener TD A 0:01:24.880 --> 0:01:27.920 bank fame. I don't know all right, TD says, Hey, 0:01:27.959 --> 0:01:30.640 ba team, I love the show and love you too, 0:01:30.720 --> 0:01:33.440 doube Queens. I'm so glad Tiffany's Backish, I've been praying 0:01:33.440 --> 0:01:36.040 for you, and I've led two book clubs with getgu 0:01:36.120 --> 0:01:39.640 with money Woo woo. A stand Yes, while I would 0:01:39.720 --> 0:01:42.119 like to remain anonymous, Yes, TD is your pen name. 0:01:42.240 --> 0:01:44.640 I hope you will consider this question for the Friday 0:01:44.720 --> 0:01:47.400 Q and A. First, I'm not even gonna look at 0:01:47.400 --> 0:01:49.760 my four oh one K or my roths, which I've 0:01:49.840 --> 0:01:52.680 totaled about three hundred and fifty to four hundred thousand 0:01:52.760 --> 0:01:55.880 dollars in the good old days aka two weeks ago. 0:01:56.520 --> 0:01:58.720 I'm locked in for the ride until I'm fifty nine 0:01:58.760 --> 0:02:00.720 and a half. In time is on my side. This 0:02:00.880 --> 0:02:04.320 is so true. Second, my emergency fund is about thirty K, 0:02:04.440 --> 0:02:07.200 which is about six to eight months of expenses right 0:02:07.200 --> 0:02:10.080 now in a high yield savings account. My house and 0:02:10.200 --> 0:02:13.320 cars are paid in full. I have about sixty K 0:02:13.600 --> 0:02:16.640 and three mutual funds that are being hammered right now. 0:02:16.720 --> 0:02:20.280 I've had fifteen K and losses since Friday. I had 0:02:20.320 --> 0:02:23.240 a goal of having one hundred thousand dollars in my 0:02:23.280 --> 0:02:26.160 emergency fund in the next one to two years. I'll 0:02:26.160 --> 0:02:28.280 be closer and feel a bit more secure if I 0:02:28.320 --> 0:02:32.080 can move fifty K to my emergency fund. I'd also 0:02:32.200 --> 0:02:36.080 like to purchase ten K and I bonds. So here's 0:02:36.080 --> 0:02:39.520 my question. Would it be unwise to move the mutual 0:02:39.560 --> 0:02:42.800 funds to my high yield savings and replenish them later 0:02:43.000 --> 0:02:46.960 by continuing to invest in the downturn? Here's the caveat. 0:02:47.160 --> 0:02:50.119 I'm thinking of taking an adult gap year or global 0:02:50.160 --> 0:02:53.200 nomadding in mid twenty twenty three, and I'd plan to 0:02:53.240 --> 0:02:55.959 liquidate my mutual funds for that life event next year. 0:02:56.480 --> 0:02:59.959 Any perspective you could offer would be great. Thanks, Ned, 0:03:00.000 --> 0:03:05.760 advance ted first and foremost. TV is impressive girl, Okay, 0:03:05.800 --> 0:03:08.280 can we look? Can we stand for this system? Right here? 0:03:08.480 --> 0:03:11.480 We can stand? Yes, four hunderd K in her four 0:03:11.520 --> 0:03:15.119 oh one K. Yes, emergency fund, six to eight months 0:03:15.160 --> 0:03:17.760 of expenses saved in the high yield savings, house and 0:03:17.840 --> 0:03:20.680 car paid in full. Boom boom damn. She should have 0:03:20.720 --> 0:03:22.440 co written Good with Money, No, not just led the 0:03:22.440 --> 0:03:28.359 book clubs, I feel like, but she's so, I get 0:03:28.360 --> 0:03:31.480 this sense. She's basically so, she's talking about her investment 0:03:31.520 --> 0:03:34.400 account outside of her four oh one K. So she's 0:03:34.440 --> 0:03:36.840 got like a brokerage account and she's got sixty K 0:03:36.960 --> 0:03:39.600 in there where she's being invested. She's been investing in 0:03:39.640 --> 0:03:42.120 mutual funds, which are being hammered right now, aren't we 0:03:42.160 --> 0:03:45.280 all right? Yes? And she wants to know if she, 0:03:45.360 --> 0:03:48.240 if she, if, what would we think about her dipping 0:03:48.240 --> 0:03:52.920 into that brokerage account, selling those investments and then selling 0:03:52.960 --> 0:03:55.400 fifty thousand dollars worth of those investments and putting them 0:03:55.440 --> 0:03:58.480 in her emergency fund and then using the ten K 0:03:58.640 --> 0:04:02.160 of those funds two or ten K of her investments 0:04:02.160 --> 0:04:04.640 that are in mutual funds right now, liquidating them and 0:04:04.680 --> 0:04:12.040 purchasing eye bonds instead. Good question, juicy. 0:04:11.480 --> 0:04:14.880 I know one, you're thinking, well one, I'm thinking, like, 0:04:16.520 --> 0:04:20.000 this is the fact, is you you for even okay? 0:04:20.160 --> 0:04:23.680 You found them back. I'm stuttering because I'm like, my 0:04:23.839 --> 0:04:27.400 miscreaction is like leave it alone, Sis, But you do 0:04:27.480 --> 0:04:30.880 have a special case because Sis got going on her. 0:04:31.480 --> 0:04:34.599 You know, her retirement accounts looking cute and good. She 0:04:35.040 --> 0:04:37.080 doesn't have the major debt that everyone else has. I'm 0:04:37.080 --> 0:04:39.760 assuming you probably don't have credit card debt either, because siss, 0:04:40.000 --> 0:04:41.760 house paid off, car paid off, you sound a good 0:04:41.800 --> 0:04:44.359 credit card debt free CISK. And then the fact that 0:04:44.400 --> 0:04:49.280 you have your your emergency fund funded six to eight months. 0:04:49.839 --> 0:04:54.640 So normally i'd be like, no, leave it alone, but ugh, 0:04:54.960 --> 0:04:56.560 because I don't know what the market is gonna do. 0:04:56.640 --> 0:04:59.239 You know, you've already lost ten to fifteen thousand dollars 0:05:00.640 --> 0:05:05.400 and it might get worse or I guess my concern 0:05:05.800 --> 0:05:12.040 is locking in the loss versus taking your money and run. Normally, 0:05:12.240 --> 0:05:14.359 if you weren't going to take this money so that 0:05:14.440 --> 0:05:17.880 way you could know mad in mid two thousand, mid 0:05:17.920 --> 0:05:19.880 twenty twenty three, i'd be like, leave it, you know, 0:05:19.920 --> 0:05:22.159 don't don't lock in the loss by drawing your money. 0:05:22.200 --> 0:05:28.040 But because it's for something specific, I mean, if. 0:05:27.920 --> 0:05:30.040 You want to do it, I'm not going to stand 0:05:30.040 --> 0:05:30.839 in your oasis. 0:05:31.080 --> 0:05:33.280 But don't tell nobody I told you, you know, because 0:05:33.320 --> 0:05:35.040 like I said, normally, i'd be like, don't do it. 0:05:35.080 --> 0:05:40.920 But because you have so you're so strong everywhere else financially. Yeah, 0:05:40.960 --> 0:05:44.880 because my concern is this recession is not looking like 0:05:45.760 --> 0:05:48.159 it's not looking like what the last mini recession looked like, 0:05:48.160 --> 0:05:50.599 which was like an instant bounce back, you know, like 0:05:50.640 --> 0:05:52.839 it went down the right back up again. It's looking 0:05:53.000 --> 0:05:55.799 like it's only gonna get worse before it gets better, 0:05:55.880 --> 0:05:58.360 and we just don't know how much how much worse. 0:05:58.720 --> 0:06:01.279 So I A'm mad at you. I'm mad at you 0:06:01.320 --> 0:06:03.640 because you have the rest of your financial life together. 0:06:03.920 --> 0:06:06.000 So if you want to do it, I mean you 0:06:06.040 --> 0:06:08.120 might see me right alongside with you. You see me now, 0:06:08.320 --> 0:06:09.920 I'll say, ooh, you have to tell me nothing now 0:06:09.920 --> 0:06:12.880 that I am recording in the upstate New York instead 0:06:12.880 --> 0:06:14.159 of my house. But I'm like, oh, look at me 0:06:14.200 --> 0:06:17.240 traveling and doing the Paul guests, so you might have 0:06:17.320 --> 0:06:18.159 me right along with you. 0:06:18.800 --> 0:06:20.160 I was excited for you to do the show on 0:06:20.200 --> 0:06:23.239 the back of a camel in Jordan, but that didn't happen. Maybe, 0:06:23.320 --> 0:06:27.520 oh that's really not happening. Ah, this is really interesting 0:06:27.520 --> 0:06:30.320 because it's so timely right. So, and she's talking about 0:06:30.839 --> 0:06:34.039 you know, she was thinking she wants to basically take 0:06:34.080 --> 0:06:36.800 this money out of the market so to so snatch 0:06:36.839 --> 0:06:39.320 it up while she still can before she loses even more. 0:06:40.000 --> 0:06:42.120 But what's important here and the reason you're giving the 0:06:42.160 --> 0:06:43.719 advice you are, and I want to make it clear 0:06:43.760 --> 0:06:45.880 to our audience. It's different than what we usually would say. 0:06:46.160 --> 0:06:48.520 Her time horizon is so much shorter now. She's talking 0:06:48.520 --> 0:06:50.840 about she was wanting to use this money for mid 0:06:50.880 --> 0:06:54.000 twenty twenty three. That's only a year away. And she 0:06:54.080 --> 0:06:57.039 had planned to use this money to global nomad, which 0:06:57.080 --> 0:07:00.440 is incredible, right, that's only a year away. And like 0:07:00.480 --> 0:07:03.320 what Tiffany is saying is with the way that trends 0:07:03.320 --> 0:07:05.680 are showing right now, things may get worse before they 0:07:05.680 --> 0:07:09.039 get better. It's possible that if she were to leave 0:07:09.080 --> 0:07:11.960 it tied up in mutual funds in the market. Let's 0:07:12.000 --> 0:07:14.160 just assume I don't know what the mutual funds are holding, 0:07:14.200 --> 0:07:17.040 but let's assume they're all stock index fund or things 0:07:17.080 --> 0:07:20.000 like that. Tracking the S and P. It's looking like 0:07:20.040 --> 0:07:21.680 things will get worse before they get better, so she 0:07:21.680 --> 0:07:24.920 could lose even more. She needs the money in the year. 0:07:24.960 --> 0:07:26.840 It'd be different if this was what the money that 0:07:26.880 --> 0:07:29.480 she was investing for her retirement. She's got that in 0:07:29.520 --> 0:07:34.679 a separate bucket. Retirement bucket is looking amazing four hundred 0:07:34.760 --> 0:07:37.600 K in a four to one K, So this is 0:07:37.640 --> 0:07:40.040 her you know, her wealth building fund on the side, 0:07:40.480 --> 0:07:43.160 So yeah, I can I can understand Tiff why you're 0:07:43.160 --> 0:07:47.320 saying what you're saying. It's scary to me still, but 0:07:49.360 --> 0:07:52.760 you know, it's really scary to me still. I love 0:07:52.840 --> 0:07:56.680 that she's I like that she's doing the eyebonds. Here's 0:07:56.680 --> 0:07:58.640 the thing, you know, so what are let's talk about 0:07:58.680 --> 0:08:00.880 some ways to yield a higher return out of the 0:08:00.880 --> 0:08:03.240 stock market. So if she's gonna take sixty k out 0:08:03.280 --> 0:08:05.200 of this fund, then what could she do? I think 0:08:05.240 --> 0:08:06.960 ten k and I bonds is great. We talked about 0:08:07.400 --> 0:08:10.520 eyebonds a few weeks ago. They're getting super sexy and 0:08:10.640 --> 0:08:13.800 exciting now because they guarantee I think a nine percent 0:08:13.920 --> 0:08:16.040 nine point sixty two percent. At the time, I should 0:08:16.080 --> 0:08:19.040 double check that they are meant to hedge against inflation, 0:08:19.080 --> 0:08:21.200 and with inflation being as high as it is, the 0:08:21.240 --> 0:08:23.520 interest rate on ebonds was like over nine percent, and 0:08:23.560 --> 0:08:27.880 that's guaranteed. You can contribute ten k per year in 0:08:27.960 --> 0:08:30.120 an ibond. So if you want go back and listen 0:08:30.120 --> 0:08:32.240 to that episode we talk all about it. That's smart, 0:08:32.480 --> 0:08:35.640 but an emergency savings fun. I mean I did get 0:08:35.640 --> 0:08:37.800 an alert from my online only bank that the savings 0:08:37.880 --> 0:08:39.559 rate is going to be going up I think two 0:08:39.600 --> 0:08:43.320 point nine percent or one percent now, which is hoo exciting, 0:08:43.880 --> 0:08:47.360 But at least look into CDs. I would say, like, 0:08:47.440 --> 0:08:49.560 I don't know what CD rates are right now, but 0:08:50.080 --> 0:08:54.079 you know, CDs can make sense if you are okay 0:08:54.120 --> 0:08:56.080 with tying up your money for a little bit of time. 0:08:56.160 --> 0:08:58.160 I mean there's CDs as short as like three or 0:08:58.160 --> 0:09:01.400 six months, sometimes as long as I don't know, five, seven, 0:09:01.440 --> 0:09:04.200 ten years. You're going to need your money in the 0:09:04.240 --> 0:09:06.959 next year, so see what twelve month CD rates kind 0:09:06.960 --> 0:09:09.599 of look like. You may not need. You're going to 0:09:09.679 --> 0:09:12.679 need some money at the beginning, sorry, some money next 0:09:12.760 --> 0:09:14.520 year when you start your travels. You may not need 0:09:14.520 --> 0:09:17.120 it all at once, though, So there's something called a 0:09:17.160 --> 0:09:20.880 CD ladder where you can choose CDs of different links 0:09:21.000 --> 0:09:24.400 so that they mature and you can withdraw the funds 0:09:24.480 --> 0:09:26.400 in a staggered pace. So you could do a six 0:09:26.440 --> 0:09:29.400 month CD, at twelve month CD at eighteen month CD 0:09:29.440 --> 0:09:31.400 at twenty four months CD to kind of like carry 0:09:31.440 --> 0:09:34.800 you through your travels, and then each time they mature 0:09:34.840 --> 0:09:37.120 you can withdraw the funds and then you know your 0:09:37.200 --> 0:09:40.959 money will have grown, probably not at an enormously amazing 0:09:41.040 --> 0:09:43.800 rate because rates are still pretty low but better than 0:09:43.840 --> 0:09:47.000 what you may get from an emergency fund. And because 0:09:47.040 --> 0:09:51.440 they are CDs, they're held by FDIC insured institutions, so 0:09:51.920 --> 0:09:54.240 you have security there as well, like you're not going 0:09:54.280 --> 0:09:56.960 to lose your money, which is of course different to 0:09:57.920 --> 0:10:00.640 money you lose in the stock market, because nothing we 0:10:00.640 --> 0:10:03.520 can do about all that. No, that's really smart. 0:10:03.559 --> 0:10:04.960 I really like that because it's like it's like a 0:10:05.040 --> 0:10:09.240 it's a good mix of our innate girlly that money alone. 0:10:09.280 --> 0:10:11.440 But also I get it because you've done everything else 0:10:11.440 --> 0:10:14.280 really responsibly and you deserve to no mad if you 0:10:14.280 --> 0:10:16.520 want to know bad, especially with what's happening in USA 0:10:16.720 --> 0:10:19.760 the USAA, but to do so in a way you 0:10:19.800 --> 0:10:22.439 know that you know where you get to make a 0:10:22.440 --> 0:10:24.320 little bit of money on your money. It's not just 0:10:24.360 --> 0:10:26.440 sitting you know, in your in your savings account. I 0:10:26.440 --> 0:10:30.160 think that's that's brilliant. Let us know where you planning 0:10:30.160 --> 0:10:36.400 on going, CYS. I would love to hear, right, I'm like. 0:10:35.600 --> 0:10:37.800 Just want to be your friend, I know, right. I 0:10:37.840 --> 0:10:40.800 was like, you want to come on because she sounds dope. 0:10:41.559 --> 0:10:46.640 We need a third co host. I don't know that's incredible. Well, 0:10:46.960 --> 0:10:50.240 good try, I mean, good luck. That's so exciting, and 0:10:50.320 --> 0:10:52.439 talk about setting goals and then going out and freaking 0:10:52.480 --> 0:10:54.640 reach them. Didn't even mention that she still has thirty 0:10:54.720 --> 0:10:56.679 K and her emergency fund on the side too, so 0:10:56.760 --> 0:11:01.120 she's covering literally all her bases. Yes, but I would 0:11:01.160 --> 0:11:03.280 also end this with this might be a good one 0:11:03.360 --> 0:11:06.400 time meet with a financial planner to get a strategy 0:11:06.400 --> 0:11:09.000 in place. I think maybe TIF and I can help 0:11:09.040 --> 0:11:11.120 you with like the beginnings of thinking about that. But 0:11:11.200 --> 0:11:12.760 I would love I mean, you can probably get a 0:11:12.800 --> 0:11:15.040 financial planner to talk to you, you know, as an 0:11:15.080 --> 0:11:18.280 initial call, just to like strategize this particular instance of 0:11:18.320 --> 0:11:22.040 your money, just to get that extra you know, professional opinion, 0:11:22.040 --> 0:11:24.560 and they can look at your whole picture very carefully 0:11:24.600 --> 0:11:28.439 and give you real specific advice in that case exactly for. 0:11:28.400 --> 0:11:30.120 Like one hundred and fifty two hundred and fifty bucks. 0:11:30.160 --> 0:11:33.200 So yeah, you could do that. Yeah, all right, y'all. 0:11:33.200 --> 0:11:35.080 Should we take a quick break and come back with 0:11:35.160 --> 0:11:37.720 another of your questions? This is a ba Q and A. 0:11:40.720 --> 0:11:43.400 And we're black. Get back. 0:11:46.160 --> 0:11:47.840 You want to read this one? Sure? 0:11:48.040 --> 0:11:50.640 Our next question is from Chanel. I hope you don't 0:11:50.640 --> 0:11:52.680 mindus using your name because you didn't say it was anonymous. 0:11:52.840 --> 0:11:55.640 So Hi, my name is Chanelle and I had a 0:11:55.720 --> 0:11:59.480 quick question with tales of the recession coming, what should 0:11:59.520 --> 0:12:03.120 we be doing to prepare? If this was already answered 0:12:03.160 --> 0:12:05.160 in a podcast episode, would you be able to tell 0:12:05.160 --> 0:12:07.520 me which one? Thanks for your help, so now we 0:12:07.600 --> 0:12:10.040 might have but cis with what's going on now we've 0:12:10.040 --> 0:12:13.960 find to answer it again. Okay, So how should people prepare? 0:12:14.000 --> 0:12:17.960 And how are you preparing, Mandy for the upcoming recession? 0:12:18.040 --> 0:12:19.720 I feel like it's like a party, like, all, how 0:12:19.720 --> 0:12:23.080 are you doing what you know for the recession? Girl? Over? 0:12:23.120 --> 0:12:25.600 There is recession girl summer? 0:12:25.679 --> 0:12:29.640 Is that a thing? Yeah? 0:12:29.720 --> 0:12:32.120 So the thing is. That's one of the reasons why 0:12:32.320 --> 0:12:35.160 this week I held a free workshop called Recession Proof 0:12:35.240 --> 0:12:38.040 your Career, because I believe very strongly that so much 0:12:38.040 --> 0:12:41.079 of our career is the root of our financial of 0:12:41.880 --> 0:12:45.600 the ability for ourselves to grow our finances. So professionally, 0:12:46.559 --> 0:12:50.920 what you can do to sort of hedge against recessions 0:12:50.960 --> 0:12:54.120 and tough economic times are to always be investing in 0:12:54.160 --> 0:12:56.679 your own skills and the value you bring to companies. 0:12:57.240 --> 0:12:59.960 The people who will be in most danger of being 0:13:00.120 --> 0:13:03.040 cut you know, and if companies do decide to downsize, 0:13:03.200 --> 0:13:05.760 they as they have been doing, are the ones whose 0:13:05.760 --> 0:13:08.640 skills can be easily replaced or automated. So what are 0:13:08.679 --> 0:13:11.280 you bringing to the table that is going to make 0:13:11.280 --> 0:13:15.079 you super valuable? And maybe you are released from your job, 0:13:15.480 --> 0:13:17.719 but will other people be looking for someone with your 0:13:17.720 --> 0:13:21.040 skills and talents? Sometimes people are laid off through no 0:13:21.080 --> 0:13:23.079 fault of their own or not because the company doesn't 0:13:23.080 --> 0:13:25.240 need their skills. But companies just got to make their 0:13:25.559 --> 0:13:27.920 They got to make the books. You know, the math 0:13:27.960 --> 0:13:30.480 has to math for Wall Street to be happy with them, right, 0:13:31.080 --> 0:13:33.640 so they make these drastic cuts. Doesn't mean that your 0:13:33.720 --> 0:13:36.120 skills are not needed? But will other companies want them? 0:13:36.160 --> 0:13:38.800 So I'm always thinking about, like, what are the skills 0:13:38.800 --> 0:13:41.120 that I have today? And then will multiple companies be 0:13:41.160 --> 0:13:43.680 interested in me? I think that's a great way to 0:13:43.720 --> 0:13:47.160 give yourself some professional security. Don't wait until times are 0:13:47.200 --> 0:13:51.000 difficult either to actually reach out to your network and 0:13:51.040 --> 0:13:53.480 to keep your network warm, because it's a lot harder 0:13:53.480 --> 0:13:56.200 to reach out to folks for help or for referrals 0:13:56.280 --> 0:13:58.520 or for like help you know, getting a job or 0:13:58.520 --> 0:14:02.599 whatnot when things are really dicey and everyone's sort of 0:14:02.640 --> 0:14:06.360 stressed out. I think it's better to cultivate those relationships, 0:14:06.520 --> 0:14:10.839 you know, always. And I think our previous question too, 0:14:10.920 --> 0:14:13.840 was a really good example of like, I don't know 0:14:13.840 --> 0:14:16.400 how to look at your where you have your money 0:14:16.440 --> 0:14:19.200 now and doesn't make the most sense for you, you know, 0:14:19.400 --> 0:14:21.440 are you? And I think it's a good time to 0:14:21.520 --> 0:14:25.600 like be restructuring your investments if you're overly risky, Like 0:14:25.680 --> 0:14:29.320 maybe your risk tolerance for investing in the stock market 0:14:29.360 --> 0:14:30.880 is not as strong as you thought it was, and 0:14:30.920 --> 0:14:33.480 you can't sleep, you know, and you have so much 0:14:33.480 --> 0:14:36.480 of your investments tied up in stocks, and maybe it's 0:14:36.520 --> 0:14:39.760 time to rethink that maybe you're getting older or you 0:14:39.960 --> 0:14:42.000 just you know, can't handle the anxiety, and maybe you 0:14:42.000 --> 0:14:45.160 need to shift some over into less risky investments. Like 0:14:45.720 --> 0:14:48.600 our last listener, she asked about eyebonds. You know, there's 0:14:48.640 --> 0:14:51.320 other forms of bonds you could purchase as well that 0:14:51.360 --> 0:14:56.240 are protected, you know, high yield savings CDs, things like that. 0:14:56.320 --> 0:14:58.600 I mean, there's a there's a bunch you can kind 0:14:58.600 --> 0:14:58.800 of do. 0:14:59.080 --> 0:15:02.160 What do you think, TI, Well, I would say, well, 0:15:02.160 --> 0:15:04.360 first and foremost, I need you to figure out what 0:15:04.360 --> 0:15:07.640 your noodle budget is I mean, this is when I 0:15:07.680 --> 0:15:09.840 survived the two thousand and nine session. That was a 0:15:09.840 --> 0:15:12.440 mistake that I made that I did not quickly drop 0:15:12.480 --> 0:15:14.400 down and get your noodle on girl. Eh, drop down 0:15:14.440 --> 0:15:16.920 and get your new girl. So your noodle budget is 0:15:17.000 --> 0:15:19.200 like think back, like if you had to eat Ramen 0:15:19.240 --> 0:15:22.280 noodles like college, right, Meaning if I look at my 0:15:22.360 --> 0:15:25.560 budget and let's just say, my life cost me five 0:15:25.640 --> 0:15:29.280 thousand dollars a month mortgage, car know everything, right, but 0:15:29.360 --> 0:15:32.080 it also includes like hair done, nails and everything did, 0:15:32.480 --> 0:15:35.440 but my life could potentially cost me four thousand dollars 0:15:35.440 --> 0:15:38.120 a month if I cut out the things that are 0:15:38.160 --> 0:15:43.880 not necessities. Right. So I'm not saying you should live 0:15:43.920 --> 0:15:46.200 at your noodle budget, but you should know what it is. 0:15:46.640 --> 0:15:50.120 That way, if really the shit hits the van, for 0:15:50.200 --> 0:15:53.080 lack of a better word, then you know instantly what 0:15:53.160 --> 0:15:56.280 you can cut out. You know, because too many people 0:15:56.560 --> 0:16:00.240 were losing their homes and still had cable. And when 0:16:00.240 --> 0:16:02.440 I say too many people, I am people. You know. 0:16:02.520 --> 0:16:03.480 I was still face like one. 0:16:03.440 --> 0:16:05.600 Hundred and something dollars a month for cable and I 0:16:05.640 --> 0:16:08.360 lost my home to foreclosure, and it was like, not 0:16:08.400 --> 0:16:10.600 that one hundred something dollars a month would have saved 0:16:10.640 --> 0:16:12.720 my house. It wasn't about the house at that point. 0:16:12.800 --> 0:16:15.920 That was grocery money for me, you know, that was 0:16:16.000 --> 0:16:18.360 other bills that could have been paid. So one identify 0:16:18.400 --> 0:16:20.400 your noodle budget. You don't have to drop down to 0:16:20.480 --> 0:16:22.720 it yet, but just know if times get tough, you can. 0:16:22.880 --> 0:16:26.240 So that's one of the things. Something else too, is 0:16:26.280 --> 0:16:28.640 like sometimes you have to identify even more than your 0:16:28.680 --> 0:16:29.200 noodle budget. 0:16:29.240 --> 0:16:30.800 I call it my health and safety budget. 0:16:31.000 --> 0:16:33.360 So noodle budget is I can still pay the bills, 0:16:33.760 --> 0:16:36.240 but I just don't have the excess. My health and 0:16:36.280 --> 0:16:38.120 safety budget is what I had to drop down to 0:16:38.160 --> 0:16:41.800 when I lost my job during the recession, the two 0:16:41.840 --> 0:16:45.680 thousand and nine recession, and I lost my house to foreclosure. 0:16:45.880 --> 0:16:48.600 Now is really really struggling, and the health and safety 0:16:48.600 --> 0:16:51.880 budget is ain't nobody getting paid unless it supports my 0:16:52.040 --> 0:16:54.760 health and my safety. That meant they were people like 0:16:54.800 --> 0:16:57.240 my credit cards that were late, and I had to 0:16:57.320 --> 0:17:00.080 be okay with that because nothing is I am more 0:17:00.120 --> 0:17:02.480 important than my bills. I had to call the credit 0:17:02.480 --> 0:17:04.840 card companies and say, hey, I don't have it right 0:17:04.880 --> 0:17:08.080 now because I'm going to get my abs, my medicine instead, 0:17:08.160 --> 0:17:09.720 I'm going to make sure that I have enough for 0:17:09.760 --> 0:17:12.240 this place where I have to live, so I'm not homeless. 0:17:12.480 --> 0:17:14.960 You know, I'm going to have enough to I can eat. 0:17:15.119 --> 0:17:17.800 And so there's levels. There's your regular budget, which you're 0:17:17.840 --> 0:17:21.280 likely living at now. Great, Know what your noodle budget is, 0:17:21.320 --> 0:17:23.600 so if you have to drop down to that, which 0:17:23.640 --> 0:17:27.399 is just the non bells and whistles budget, great, Then 0:17:27.520 --> 0:17:30.399 know your health and safety budget, whereas it means that 0:17:30.480 --> 0:17:32.800 some bills won't get paid because you have to take 0:17:32.800 --> 0:17:35.280 care of your health and safety. So really understanding your 0:17:35.280 --> 0:17:38.040 tears and doing so, but also too. One of the 0:17:38.040 --> 0:17:39.720 reasons why I wrote We're going to do I haven't 0:17:39.760 --> 0:17:42.040 done a GetGo of Money plug in a long time. Okay, 0:17:42.320 --> 0:17:45.440 my New York Times bestselling book Gets Good with Money. 0:17:45.800 --> 0:17:47.600 But honestly, one of the reasons why I wrote it 0:17:47.720 --> 0:17:51.480 was in response to how I struggled during the twenty 0:17:51.560 --> 0:17:57.760 nine and ten recession. I wanted to create this holistic 0:17:57.840 --> 0:18:02.080 look of your money that I call financial homeness, and 0:18:02.119 --> 0:18:04.760 that is these ten components of your personal finances that 0:18:04.800 --> 0:18:06.800 will allow you to see you through the good and 0:18:06.840 --> 0:18:11.080 the bad, and so focusing on your financial holeness honestly, 0:18:11.359 --> 0:18:16.560 So that is so here are the ten components budgeting, savings, debt, credit, 0:18:16.720 --> 0:18:19.439 learning to earn. So that's like financial hollness one oh one, 0:18:19.600 --> 0:18:24.320 that's the core foundation, and then financial holness one oh 0:18:24.359 --> 0:18:29.520 two is investing for both retirement and wealth. Right, it 0:18:29.640 --> 0:18:32.560 is your insurance, it is your money team, your net 0:18:32.600 --> 0:18:36.600 worth and estate planning. So I would focus on the 0:18:36.640 --> 0:18:39.919 first five components of financial holness, like really tightening up 0:18:39.920 --> 0:18:42.760 on your budget, on your savings, plan on lowering your debt, 0:18:42.920 --> 0:18:45.720 and managing your credit and learning to earn. You know, 0:18:45.760 --> 0:18:47.320 if you need help with that, you can go head 0:18:47.320 --> 0:18:49.560 on over to get Good with Money dot com and 0:18:49.600 --> 0:18:52.959 go ahead and scoop that book up. No, but honestly, like, 0:18:53.280 --> 0:18:56.680 that's why I wrote that book, and honestly, it's just 0:18:57.000 --> 0:18:59.199 an accumulation of the work that I do, which is 0:18:59.840 --> 0:19:03.119 I'm really here to help you to build this financial 0:19:03.160 --> 0:19:06.520 foundation so you can see your way through the most 0:19:06.520 --> 0:19:08.719 difficult parts of your financial journey and you're in your 0:19:09.320 --> 0:19:11.280 life's journey as it relates to your money. And so 0:19:11.400 --> 0:19:14.800 that's what I would suggest, understanding your tears, really working 0:19:14.840 --> 0:19:18.200 on this financial homeness part and also not purchasing any 0:19:18.240 --> 0:19:22.040 big ticket items unless you are really solid with your dead, 0:19:22.359 --> 0:19:25.120 your your your investments, you know your you have your 0:19:25.119 --> 0:19:28.520 retirement fund, you have your six to twelve months worth 0:19:28.520 --> 0:19:32.159 of of an emergency fund. I would not be buying 0:19:32.880 --> 0:19:35.440 like a big ticket item right now because you might 0:19:35.480 --> 0:19:38.440 need that money to survive through this. So just keep 0:19:38.480 --> 0:19:39.720 those things in mind. 0:19:41.119 --> 0:19:44.240 Yeah, and Chanelle doesn't mention much about her assets and 0:19:44.280 --> 0:19:46.320 how much she hasn't She hasn't mentioned anything boy her dad, 0:19:46.400 --> 0:19:49.360 her or her cash on hand. But for those who 0:19:49.400 --> 0:19:52.000 have the means and for those who have a long 0:19:52.040 --> 0:19:56.160 time horizon, I would not want y'all to stop investing. 0:19:56.320 --> 0:19:58.879 I mean, this is my advice with a lowercase A, 0:19:59.119 --> 0:20:01.919 not an investment. But if you have the means and 0:20:01.920 --> 0:20:04.399 you know our previous are I almost had previous caller, 0:20:04.520 --> 0:20:08.800 our previous question from listener TD who has you know, 0:20:08.880 --> 0:20:11.040 wants to do something with her investments next year. That's 0:20:11.080 --> 0:20:13.280 a very short time horizon. Yeah, snatch that money up 0:20:13.320 --> 0:20:15.240