WEBVTT - BA Q&A: What's Your Rich Life? ft. Ramit Sethi 0:00:06.120 --> 0:00:09.799 It's time for the b a q a a b 0:00:10.000 --> 0:00:12.840 a q a with Tiffin. The b a q a 0:00:13.080 --> 0:00:17.480 no mandate, but the b a qa with Remat Sete. 0:00:18.239 --> 0:00:20.439 What I did there? I'm telling you when I get 0:00:20.440 --> 0:00:22.560 my record deal, y'all fen to be mad because I 0:00:22.560 --> 0:00:24.799 won't even be here like that. Okay. So anyway we 0:00:24.960 --> 0:00:28.600 have in the stew we have Ramat set Ti. I'm 0:00:28.600 --> 0:00:31.880 saying your name right right, Ramit say t I'm so sorry, Remed. 0:00:32.200 --> 0:00:34.080 You know as somebody who's name when I was born 0:00:34.159 --> 0:00:36.559 was Adochi. You know they called me everything but that 0:00:37.000 --> 0:00:41.560 so Remeat safety and He is the host of Netflix's 0:00:41.640 --> 0:00:44.479 hit How to Get Rich. If you have not watched it, 0:00:44.560 --> 0:00:46.519 are you even a brann and bish and listener? Hellled 0:00:46.560 --> 0:00:49.239 we talked about it but also too. He is the 0:00:49.280 --> 0:00:51.479 author of New York Times best selling book I Will 0:00:51.520 --> 0:00:54.280 Teach You to Be Rich. He also has his own 0:00:54.360 --> 0:00:57.120 amazing podcast called I Will Teach You to Be Rich. 0:00:57.560 --> 0:01:00.240 For me is an og in the game, Honey. He 0:01:00.280 --> 0:01:02.480 has been here for a long time busting open a 0:01:02.520 --> 0:01:05.280 door for us brownies and personal finance. So I asked 0:01:05.280 --> 0:01:06.520 for me if he could stay. If you have not 0:01:06.600 --> 0:01:09.520 listened to the interview before this that came out on Wednesday. 0:01:09.680 --> 0:01:12.440 Do it. It's an awesome interview. So I asked him if 0:01:12.440 --> 0:01:15.440 you could stay and answer some of your questions, and 0:01:15.600 --> 0:01:21.360 Ramat said yes, indeed. So question number one re meat, Hi, 0:01:21.520 --> 0:01:24.039 ladies and gentlemen, I'm gonna add that part. I love 0:01:24.080 --> 0:01:26.480 your podcast and have been listening for a while. You 0:01:26.520 --> 0:01:29.360 both give such great advice on pretty much everything. I 0:01:29.400 --> 0:01:31.120 don't know about all that, girl, but okay, I'll take it. 0:01:31.640 --> 0:01:35.120 My question is should I take out a home equity 0:01:35.200 --> 0:01:39.200 loan to pay off my IRS taxes or pay them 0:01:39.240 --> 0:01:42.840 with an IRS installment plan. The IRS has interests and 0:01:42.880 --> 0:01:48.760 penalties that can occur daily, monthly, and quarterly. If I 0:01:48.880 --> 0:01:52.400 qualify for a home equity loan, I cannot only take 0:01:52.440 --> 0:01:54.320 out enough to pay the IRS. I could take out 0:01:54.440 --> 0:01:57.720 enough to pay my doctor bills off. At that point, 0:01:57.760 --> 0:02:01.360 I would only be stuck with that loan payment, mortgage, 0:02:01.560 --> 0:02:04.920 one utility bill because my town has one bill for 0:02:04.960 --> 0:02:08.519 all utilities and student loans whenever they start back, which 0:02:08.560 --> 0:02:11.160 is going to be in August. My husband and I 0:02:11.200 --> 0:02:14.160 have vehicles that are paid off. The IRS total is 0:02:14.200 --> 0:02:18.720 sixteen thousand, and doctor bills are eight thousand. We have 0:02:18.760 --> 0:02:21.560 a mortgage and two kids. I am not willing to 0:02:21.680 --> 0:02:25.040 use my six month emergency fund to pay the debt off. 0:02:25.520 --> 0:02:28.400 That's another question. Am I wrong for not using my 0:02:28.440 --> 0:02:30.640 emergency fund to pay off debt? That's funny. That's one 0:02:30.720 --> 0:02:34.840 to use the emergency fund for emergency Okay, that's not funny. 0:02:35.280 --> 0:02:38.600 I hope you can both help assist the out. So 0:02:38.639 --> 0:02:40.040 this is actually a really good question for me. 0:02:40.120 --> 0:02:43.200 It is a good question. So first off, there is 0:02:43.280 --> 0:02:45.040 no right or wrong answer to this. I'm going to 0:02:45.080 --> 0:02:48.040 tell you how I would think about it. I find 0:02:48.080 --> 0:02:52.720 that when people have debt, they often will do everything 0:02:53.120 --> 0:02:57.080 except attack the debt. They'll write me about opening up 0:02:57.080 --> 0:03:00.280 a zero percent balance transfer. They'll write me about doing 0:03:00.360 --> 0:03:03.480 this convoluted tactic. And what I really want to hear 0:03:03.480 --> 0:03:06.280 from them is how much do you owe? How much 0:03:06.280 --> 0:03:09.280 can you aggressively pay every month? And when will it 0:03:09.360 --> 0:03:12.280 be paid off? So? Could you do a home equity 0:03:12.320 --> 0:03:13.880 liign of credit? You could? 0:03:14.400 --> 0:03:14.680 Would? 0:03:14.680 --> 0:03:18.480 I know what I would do is I would call 0:03:18.520 --> 0:03:20.120 them up. I would say how much do I owe? 0:03:20.560 --> 0:03:22.520 With the medical bill? I would try to negotiate it 0:03:22.600 --> 0:03:25.000 with the IRS bill. I would try to get favorable terms, 0:03:25.000 --> 0:03:27.120 they'll actually work with you in many cases, not all, 0:03:27.120 --> 0:03:29.920 but many. And then I would set up an automatic 0:03:29.919 --> 0:03:32.520 payment plan. It might take you you said it's twenty 0:03:32.520 --> 0:03:35.600 four thousand, It might take you a year, two years, 0:03:35.800 --> 0:03:40.480 maybe three years, okay, factor in the interest depends on 0:03:40.520 --> 0:03:42.720 what the interest is. Maybe they'll waive the interest depends. 0:03:43.160 --> 0:03:48.840 But that to me is focusing on actually behavioral change. 0:03:49.240 --> 0:03:51.480 We're going to cut off three hundred bucks a month 0:03:51.520 --> 0:03:54.800 from our spending and put it towards our debt. That's 0:03:54.840 --> 0:03:57.360 how I would approach it, because it solves the root problem. 0:03:57.720 --> 0:04:01.280 Simply shifting debt from one place to another may save 0:04:01.360 --> 0:04:04.080 you a little in interest, it may make you feel better, 0:04:04.320 --> 0:04:06.920 but it doesn't actually change the root problem. And so 0:04:07.000 --> 0:04:10.520 I want personally, if it were me, I would not 0:04:10.600 --> 0:04:13.160 take a home equity line of credit. I don't want 0:04:13.200 --> 0:04:16.200 to take on more complexity. I want simplicity. I would 0:04:16.200 --> 0:04:18.560 make a debt payoff plan. I would try to negotiate 0:04:18.640 --> 0:04:20.680 and whether or not they allow me to. I would 0:04:20.680 --> 0:04:23.200 set up an automated payment plan and know exactly what 0:04:23.240 --> 0:04:25.960 month and year my debt will be paid off, So. 0:04:26.040 --> 0:04:28.520 Question what about her six months? Which? First of all, 0:04:28.560 --> 0:04:30.520 congratulations we're gonna call you I forget, like we're gonna 0:04:30.520 --> 0:04:32.680 call you helpless sister out Hey, you help a sister 0:04:32.680 --> 0:04:36.320 out right? So what about her emergency funds? Like? Yeah, 0:04:36.360 --> 0:04:39.160 because I know people are very adverse to using emergency funds, 0:04:39.200 --> 0:04:41.279 which I can understand because you're afraid that something bigger 0:04:41.360 --> 0:04:43.120 might come along. What do you think about that? 0:04:43.440 --> 0:04:45.640 Again, I don't think there's any right or wrong answer here. 0:04:45.680 --> 0:04:47.680 I do think it's amazing that she's saved up a 0:04:47.680 --> 0:04:50.039 six month emergency fund. To me, that shows a lot 0:04:50.040 --> 0:04:53.080 of discipline, a lot of foresight. It's rare and amazing. 0:04:53.120 --> 0:04:55.000 So I think she should give herself a pat on 0:04:55.000 --> 0:04:58.880 the back. There is something to be said once she 0:04:59.040 --> 0:05:01.839 makes a debt pay off plan. Let's say that she's 0:05:01.920 --> 0:05:04.760 paying I don't know, five hundred bucks a month towards 0:05:04.800 --> 0:05:07.159 her debt, could be three hundred, could be eight hundred, whatever, 0:05:07.760 --> 0:05:09.919 and she's going to plug it into a debt payoff 0:05:09.960 --> 0:05:13.159 calculator and she's gonna say, Okay, it's gonna take me 0:05:13.240 --> 0:05:17.120 three point five years to pay it off. Then, now 0:05:17.120 --> 0:05:20.160 that she's got it all on paper, she can actually say, hey, 0:05:20.240 --> 0:05:23.080 wait a minute, I've got six months of my emergency fund. 0:05:23.200 --> 0:05:26.400 What if I took one month and put it towards 0:05:26.440 --> 0:05:30.760 that debt, that might shave off four months of debt payoff. 0:05:30.960 --> 0:05:33.440 Who knows, But she can actually play with it and 0:05:33.480 --> 0:05:36.480 make a decision right now, she's kind of making a 0:05:36.600 --> 0:05:41.360 rule without really understanding the nuances, right and so sometimes 0:05:41.440 --> 0:05:43.720 rules are helpful because they're just black or white. This 0:05:43.760 --> 0:05:45.039 is what I'm gonna do, this is what I'm not 0:05:45.080 --> 0:05:47.360 going to do. I don't mind it. I like rules, 0:05:47.800 --> 0:05:51.400 But with the debt amount of twenty four thousand, maybe 0:05:51.400 --> 0:05:56.000 one month might actually contribute meaningfully to paying off this debt. 0:05:56.240 --> 0:05:58.760 That's my take. Like that, I like if so, remember 0:05:58.920 --> 0:06:00.920 we I'm glad that we said that's what he would do, 0:06:00.960 --> 0:06:04.240 because what do we always tell y'all that we are 0:06:04.279 --> 0:06:06.480 not your financial advisor, we're not your doctor, we're not 0:06:06.520 --> 0:06:08.279 your lowie, we're not your mom, we're not your dad. 0:06:09.360 --> 0:06:12.320 Go see Grandy, don't sue us. This is just take 0:06:12.360 --> 0:06:15.080 it with a grain of salt, the smallest grain that 0:06:15.120 --> 0:06:17.840 you can find. And this is certainly just some Hey, 0:06:18.000 --> 0:06:20.919 this is what I potentially would do. And essentially, you 0:06:20.920 --> 0:06:23.080 have to decide what you're going to do for yourself help. 0:06:23.160 --> 0:06:25.359 Us to stay out, but no, I like that. I 0:06:25.400 --> 0:06:27.479 think that that was the one thing I was going 0:06:27.520 --> 0:06:28.960 to say to add to it is I was going 0:06:29.040 --> 0:06:32.840 to say, look to see like not necessarily using all 0:06:32.880 --> 0:06:37.120 your emergency funds, but potentially using some of them to 0:06:37.200 --> 0:06:41.280 help expedite the process, because sometimes we forget that emergency 0:06:41.320 --> 0:06:43.640 funds are for emergencies. I remember a friend of mine 0:06:43.640 --> 0:06:46.000 calling me one day. She was crying and her car 0:06:46.040 --> 0:06:47.680 broke down or something like that, and I was like, well, 0:06:47.680 --> 0:06:49.240 what's wrong. She was like, oh, my car broke down. 0:06:49.240 --> 0:06:50.240 I don't know what I'm going to do. I have 0:06:50.240 --> 0:06:52.800 to get to work. And I said, well, you know, 0:06:52.800 --> 0:06:54.440 because I've been working with her, I'm like, well, you 0:06:54.480 --> 0:06:56.880 have emergency funds. She's like, yeah, but that's for emergencies. 0:06:57.080 --> 0:06:59.200 Like, oh my god, the same thing. The same thing 0:06:59.240 --> 0:07:01.920 happened during COVID. So during COVID, I had so many 0:07:01.960 --> 0:07:05.280 people and they're like, my wife like still has to 0:07:05.320 --> 0:07:07.800 go to work. I'm so worried. You know, we have 0:07:07.880 --> 0:07:10.960 this illness in our family, and but I don't know 0:07:10.960 --> 0:07:13.560 what else to do. I'm like, this is literally a 0:07:13.680 --> 0:07:16.520 worldwide emergency. This is what an emergency fund is for. 0:07:17.800 --> 0:07:20.600 So I mean that was like potentially life or death. 0:07:20.680 --> 0:07:24.440 I think that this is a little murkier, you know, debt. 0:07:25.240 --> 0:07:27.480 You can make the argument maybe it is, maybe it's not. 0:07:27.680 --> 0:07:30.239 I don't personally think it's something that I would tap 0:07:30.280 --> 0:07:34.120 my entire emergency fund for. But if you've done a 0:07:34.120 --> 0:07:38.040 great job of building up six months, you may want 0:07:38.080 --> 0:07:42.080 to consider whether dropping that down to five months, you know, 0:07:42.520 --> 0:07:43.400 what does that do for you? 0:07:44.040 --> 0:07:46.360 Yeah? Also too, if you're able to meet the point, 0:07:46.440 --> 0:07:49.600 I'm assuming that we're taking the leap that you got 0:07:49.640 --> 0:07:52.320 there by putting aside a certain amount of money every month, 0:07:53.000 --> 0:07:55.400 you know, or if you paid period or every like, Well, 0:07:55.400 --> 0:07:57.760 now that money can be available to put toward your 0:07:57.760 --> 0:07:58.720 irs dead instead. 0:07:58.760 --> 0:07:59.640 Yeah, totally, you know. 0:07:59.720 --> 0:08:03.360 So you know. So, Okay, we're gonna take a quick break, 0:08:03.800 --> 0:08:07.280 come back and answer another question. So if you are 0:08:07.320 --> 0:08:09.680 a listener before we take a break and you want 0:08:09.720 --> 0:08:13.040 your questions to be answered, we can. You can go 0:08:13.040 --> 0:08:16.880 to Brownivision podcast dot com click contact us. You can 0:08:16.960 --> 0:08:20.200 go to Brand and Vision Podcasts on IG and sliding 0:08:20.240 --> 0:08:24.760 the dms. Okay, you could also tweet us at the 0:08:24.840 --> 0:08:29.040 BA podcast or Brownivision Podcasts at gmail dot com. Ask 0:08:29.080 --> 0:08:33.640 your questions about business, about career, about personal finance, about money. 0:08:33.720 --> 0:08:39.520 We are here to answer your questions as much as possible. Okay, 0:08:39.720 --> 0:08:42.240 and we're back. And I decided to switch gears cause 0:08:42.240 --> 0:08:44.120 I could do that, you know, for me's been in 0:08:44.160 --> 0:08:46.240 the game longer than I have. And I teach you 0:08:46.240 --> 0:08:48.920 guys all the time that if you are looking for mentorship, 0:08:49.480 --> 0:08:52.959 like to look for people who have done the things 0:08:53.040 --> 0:08:56.200 you're wanting to do, especially if they have time put in. 0:08:56.559 --> 0:08:58.760 Because I'm not impressed. Like you know, someone is one 0:08:58.840 --> 0:09:01.079 year in business and they've made for million dollars. Cute, 0:09:01.080 --> 0:09:03.760 I'll see you in ten years, you know, because anyone, 0:09:03.800 --> 0:09:05.520 as the kids can say, as the kids say, can 0:09:05.559 --> 0:09:07.880 hit a lick. I can see my bonus starter right now. 0:09:08.000 --> 0:09:10.560 Like no, she didn't, I said it hit a lick. 0:09:10.800 --> 0:09:13.440 I'm cool anyway, So anyone can hit a lick. But 0:09:13.559 --> 0:09:18.320 it takes it really takes like knowledge, it takes fortitude, 0:09:18.360 --> 0:09:21.600 It takes consistency to be in business year after year 0:09:21.640 --> 0:09:24.120 after year after year. And so I'm going to lean 0:09:24.160 --> 0:09:27.920 into the wisdom of remeat and not necessarily ask a 0:09:27.920 --> 0:09:33.480 financial question, but a business question. So I am in 0:09:33.520 --> 0:09:35.440 a real like no, no, no, I'm like in this weird 0:09:35.440 --> 0:09:37.360 place where I don't want to do as much work 0:09:37.400 --> 0:09:38.920 as I used to do, and I'm not doing as 0:09:39.000 --> 0:09:40.560 much work as I used to do remat just because 0:09:40.559 --> 0:09:42.959 I'm just like I'm over it. I used to work 0:09:43.000 --> 0:09:45.400 all the time. I have a number of companies, one 0:09:45.400 --> 0:09:47.920 of them Brian Ambition with Mandy, which we have fun 0:09:47.960 --> 0:09:49.880 our podcast and I love it. I want to keep it. 0:09:50.000 --> 0:09:53.880 I have an online school, the Literature Academy. It does well, 0:09:54.040 --> 0:09:56.360 and I have I hired a CEO, thank god, so 0:09:56.400 --> 0:09:58.080 I don't have to do the day to day running. 0:09:58.400 --> 0:10:01.840 And then i have my personality brand, the Budgetista, which 0:10:01.880 --> 0:10:04.839 is the business of Tiffany, and I'm trying to figure out, 0:10:05.040 --> 0:10:07.599 like I don't know. It's not so much for the 0:10:07.640 --> 0:10:09.680 Academy because I feel like it's taken care of, not 0:10:09.720 --> 0:10:11.520 for Bound Ambition because I feel like it's taken care of. 0:10:11.679 --> 0:10:14.080 But I'm in this weird space with the Budgetista where 0:10:14.120 --> 0:10:18.719 I'm like what you know, Like what am I? I 0:10:18.760 --> 0:10:20.360 don't really know what to do because I love doing 0:10:20.400 --> 0:10:23.400 I love teaching financial education, but I'm in this weird 0:10:23.400 --> 0:10:25.120 space where I feel like I'm supposed to be pivoting 0:10:25.120 --> 0:10:27.679 towards something and like, have you been in a space 0:10:27.720 --> 0:10:30.480 where like because I feel like I will teach you 0:10:30.520 --> 0:10:33.560 to be rich. It's like equal parts this external business, 0:10:33.559 --> 0:10:35.600 but I still associated with you kind of like as 0:10:35.600 --> 0:10:38.760 this personality brand. Like, what's been some of the pivots 0:10:38.800 --> 0:10:40.920 that you've made that have allowed you to have more 0:10:40.960 --> 0:10:43.680 space and freedom and time while still your business still 0:10:43.720 --> 0:10:44.560 being successful. 0:10:47.480 --> 0:10:50.000 A lot of pivots. What a great question. Gosh, this 0:10:50.080 --> 0:10:53.960 is this is fantastic. So my business been around about 0:10:53.960 --> 0:10:58.200 twenty years and it's kind of fascinating from a bird's 0:10:58.200 --> 0:11:03.320 eye view to see many other players in personal finance 0:11:03.360 --> 0:11:06.040 and other industries. And I guess I have a model 0:11:06.160 --> 0:11:09.200 of three different types of businesses that I've seen. One 0:11:09.280 --> 0:11:12.360 is ones that grow really fast. They typically take venture 0:11:12.360 --> 0:11:13.960 capital and that's what they want to do. That's the 0:11:13.960 --> 0:11:17.280 game they're playing. Another one is one that goes really deep. 0:11:17.640 --> 0:11:20.040 I have a friend Patrick Mackenzie, who writes a newsletter 0:11:20.120 --> 0:11:25.320 on basically really detailed banking. He's super deep. If you 0:11:25.320 --> 0:11:27.240 want to know about banking transactions, He's the guy in 0:11:27.280 --> 0:11:30.800 the world. And then another model is longevity. They stay 0:11:30.840 --> 0:11:31.960 around and I love that. 0:11:32.200 --> 0:11:33.000 I love. 0:11:34.760 --> 0:11:37.400 Buying a car and keeping it for fifteen years. I 0:11:37.440 --> 0:11:40.920 love my investments for fifty years. That's just how I'm wired. 0:11:41.440 --> 0:11:44.640 And so in order to do that, in order to 0:11:44.640 --> 0:11:48.600 have a long business, I realized a few things. Number One, 0:11:49.040 --> 0:11:51.640 I got to have a way that makes profit. Okay, 0:11:51.640 --> 0:11:53.480 that's really important. If you don't have profit, then you're 0:11:54.280 --> 0:11:57.240 you got a hobby. So having a really strong baseline 0:11:57.240 --> 0:11:59.800 of something that makes money, and preferably a lot of 0:11:59.800 --> 0:12:03.880 it at high margin, that's awesome. The next thing, the 0:12:03.960 --> 0:12:10.840 next pivotal moment for me was I think really realizing 0:12:10.880 --> 0:12:13.319 that now that I have that, I want to have fun. 0:12:13.920 --> 0:12:17.040 If I'm not having fun, my team's not having fun. 0:12:17.040 --> 0:12:19.280 If my team's not having fun, our readers and followers 0:12:19.280 --> 0:12:21.120 and fans are not having fun. And that's the end 0:12:21.120 --> 0:12:23.480 of the ball game. So what does that mean for me? 0:12:23.800 --> 0:12:26.040 It suddenly started to take on a different meeting. It 0:12:26.040 --> 0:12:28.360 means that my wife and I travel for a couple 0:12:28.440 --> 0:12:30.920 months a year. We love traveling, it's important to us. 0:12:31.280 --> 0:12:34.320 And while I'm traveling, I'm not working. I might log 0:12:34.400 --> 0:12:36.720 in for one hour a week check some high impact 0:12:36.800 --> 0:12:38.959 messages that got to me from my assistant, and that's it. 0:12:39.400 --> 0:12:43.040 But I'm work is an important, but it's one part 0:12:43.080 --> 0:12:46.760 of my life. And if you kind of like expand 0:12:46.760 --> 0:12:48.520 that out, you realize it means you have to have 0:12:48.559 --> 0:12:52.240 an amazing team. You have to scope down what you're doing. 0:12:52.360 --> 0:12:54.480 You may not be able to do everything, but you 0:12:54.520 --> 0:12:56.480 do a few things and do it really well, and 0:12:56.559 --> 0:12:59.000 you have to resist the rest of the world telling 0:12:59.040 --> 0:13:01.280 you you should be doing. 0:13:01.240 --> 0:13:01.920 X, Y and Z. 0:13:02.160 --> 0:13:03.720 You know, they told me I should have a podcast 0:13:03.800 --> 0:13:07.960 for eight years, and I heard them, but I just 0:13:08.040 --> 0:13:09.839 was like, I don't have the right idea. I'm gonna 0:13:09.840 --> 0:13:12.360 wait until I do. They told me that I have 0:13:12.440 --> 0:13:14.880 to change the name of my business because it's too 0:13:14.920 --> 0:13:19.840 focused on me. But I like me and I'm good 0:13:19.880 --> 0:13:22.080 with it. So you know, I think you have to 0:13:22.120 --> 0:13:23.680 have a really clear idea of who you are and 0:13:23.720 --> 0:13:26.520 who you're not and then have fun. That's what I 0:13:26.520 --> 0:13:27.000 would say. 0:13:27.840 --> 0:13:30.920 Okay, yeah, it's because I'm saying I now, I travel 0:13:30.920 --> 0:13:32.520 a lot. I take about three months off a year, 0:13:32.559 --> 0:13:34.720 and to your point, I actually don't work, which I love. 0:13:35.160 --> 0:13:37.440 I'm like, I tell the team, you know, if there's 0:13:37.440 --> 0:13:41.559 a fire call, a firefighter, like, don't you know unless 0:13:41.559 --> 0:13:43.320 someone on the team is actually hurt, you know, then 0:13:43.400 --> 0:13:45.120 of course I care about that, you know, like something's 0:13:45.160 --> 0:13:47.600 happened to someone on the team, because I care about 0:13:47.600 --> 0:13:50.400 my team. But other than that, I'm like, figure it out, 0:13:50.480 --> 0:13:53.280 figured out, let me alone. And so I've just been like, 0:13:53.320 --> 0:13:54.920 you know, because that was one of the bigger things 0:13:54.960 --> 0:13:57.360 I said, like I want to focus more on how 0:13:57.360 --> 0:13:59.520 do you actually want to live, Tiffany. And then because 0:13:59.679 --> 0:14:01.640 for the longest time, it was like what is the budget, 0:14:01.679 --> 0:14:04.319 eeath the need and then I will fit Tiffany around 0:14:04.760 --> 0:14:07.360 what that business needs, you know, And now it's really like, 0:14:07.600 --> 0:14:10.040 really Tiffany focused. I used to take my laptop with me, 0:14:10.520 --> 0:14:12.640 like to the grocery store, like I had a mar 0:14:12.720 --> 0:14:15.440 because I'm like, you never know when an important emails 0:14:15.520 --> 0:14:18.240 got and sometimes my phone is not enough. And now 0:14:18.280 --> 0:14:21.360 I'm like, I can't remember the last time, like I mean, 0:14:21.440 --> 0:14:23.720 my laptop. I don't even bring up with me when 0:14:23.760 --> 0:14:25.440 I travel because I'm just like, why unless I want 0:14:25.440 --> 0:14:26.960 to watch a movie? Yeah, you know. 0:14:27.080 --> 0:14:29.080 So I love that It's really about, you know, is 0:14:29.200 --> 0:14:31.000 what is my rich life? And in your case, I 0:14:31.040 --> 0:14:34.680 can see it's it's travel, it's exploration, it's other things. 0:14:34.720 --> 0:14:36.680 And you can still do that and have a really 0:14:36.720 --> 0:14:39.440 successful business, especially at your level because you've been doing it, 0:14:39.840 --> 0:14:42.760 you have the team. But I think spending time on 0:14:43.640 --> 0:14:47.960 really painting that picture of your rich life for today, 0:14:48.000 --> 0:14:51.400 which can change tomorrow. I think that's the process I 0:14:51.520 --> 0:14:52.920 use routinely. 0:14:54.360 --> 0:14:55.880 Is there like a tool or anything that you use. 0:14:55.920 --> 0:14:58.000 I remember a tool that helped me when I first 0:14:58.000 --> 0:15:01.040 started was Tim Ferriss and the book you know for 0:15:01.120 --> 0:15:05.360 our work week. He was like, figure out. I can't 0:15:05.400 --> 0:15:09.040 remember the words that he used, dreamline yes, yes, and 0:15:09.120 --> 0:15:10.480 so it was like, and then how much is that 0:15:10.480 --> 0:15:13.360 gonna cost you? And that helped tremendously when I was 0:15:13.400 --> 0:15:15.280 teaching preschool trying to figure out, like what was I 0:15:15.320 --> 0:15:17.520 going to what was I going to do next? Is 0:15:17.520 --> 0:15:19.080 that still a tool that you use or you have 0:15:19.120 --> 0:15:19.480 something else? 0:15:19.520 --> 0:15:22.200 I have my own tools, So I have several. I'll 0:15:22.200 --> 0:15:25.320 share a couple of them here. One of them is 0:15:26.760 --> 0:15:29.800 a ten year bucket list. And you can do this solo, 0:15:29.920 --> 0:15:31.920 you can do with a partner. My wife and I 0:15:31.960 --> 0:15:35.920 did it together and it was really fun because what 0:15:35.920 --> 0:15:37.480 do I mean by a ten year bucket list? What 0:15:37.520 --> 0:15:41.280 I mean is what do I or we want to 0:15:41.320 --> 0:15:44.600 do in the next ten years where if we accomplish 0:15:44.680 --> 0:15:47.160 these things, it will mean we have lived a rich 0:15:47.280 --> 0:15:51.240 and meaningful life. Okay. And the answers are so interesting. 0:15:51.600 --> 0:15:54.040 So we had we both wrote them down separate piece 0:15:54.040 --> 0:15:56.240 of paper, then we compared them. We went back and forth. 0:15:56.320 --> 0:15:58.960 He could do this with a friend, with a partner, solo, 0:15:59.440 --> 0:16:02.240 and it was like one person, I want to learn 0:16:02.360 --> 0:16:05.760 Spanish and the other person goes, wow, oh wow, that's amazing. 0:16:05.840 --> 0:16:07.960 So do you want to do that with a teacher? 0:16:08.040 --> 0:16:10.080 Do you want to do it in Mexico City? What 0:16:10.120 --> 0:16:14.360 does it look like? Kind of saying yes? And another person, 0:16:14.400 --> 0:16:18.400 I want to do skydiving. Oh, that's gonna have to 0:16:18.440 --> 0:16:19.920 be on your own. I'll meet you at the bottom 0:16:19.960 --> 0:16:22.720 with a bottle of champagne. And what we found was 0:16:22.760 --> 0:16:26.120 we found a couple that were really meaningful for both 0:16:26.160 --> 0:16:27.800 of us. So for us, it was to have a 0:16:27.800 --> 0:16:31.160 tenure wedding anniversary in a very special place that we 0:16:31.240 --> 0:16:33.640 know with all of our friends and family. So we 0:16:33.720 --> 0:16:36.120 honed it on that and we said, all right, let's 0:16:36.120 --> 0:16:38.800 actually make this happen. How much what's the date? We 0:16:38.840 --> 0:16:41.400 knew the exact date. How much is it going to cost? 0:16:41.560 --> 0:16:43.120 And so what we did was we went back to 0:16:43.160 --> 0:16:45.200 our piece of paper, we wrote down a number and 0:16:45.240 --> 0:16:47.720 we just ballparked it. People get hung up on precision. 0:16:48.080 --> 0:16:50.840 Sometimes you don't need precision, you need a big, bad, 0:16:51.160 --> 0:16:54.240 round number. So we both came back, we compared numbers. 0:16:54.320 --> 0:16:56.240 Mine was a lot bigger because you know, I like 0:16:56.600 --> 0:17:00.880 nice hotels and whatever, and so in this case, if 0:17:00.880 --> 0:17:02.440 you have two different numbers, you just go with the 0:17:02.440 --> 0:17:05.639 bigger one, okay. And we took that number, and we 0:17:05.720 --> 0:17:08.800 started saving money every single month because we knew the 0:17:08.840 --> 0:17:11.199 exact date that we needed it. So every month and 0:17:11.280 --> 0:17:13.359 we talk about money. It's like a video game. We're 0:17:13.359 --> 0:17:16.320 getting a little bit closer to that thing. I think 0:17:16.359 --> 0:17:19.120 for a lot of people, that's first tools tenure bucket list. 0:17:19.600 --> 0:17:23.240 The second one is going through my money dial exercise, 0:17:23.960 --> 0:17:26.560 and you can find this. I gave a talk at Google. 0:17:26.600 --> 0:17:29.000 You can find it in my money coaching program. Essentially, 0:17:29.119 --> 0:17:31.959 what do you love to spend money on? For most people, 0:17:32.280 --> 0:17:35.720 the number one answer is food. It's like eating out. 0:17:36.160 --> 0:17:38.920 The next answer is travel, The third is health and wellness, 0:17:39.160 --> 0:17:41.720 fourth is mind convenience, And there's a variety of other 0:17:41.720 --> 0:17:43.600 money dells. The second question is what if you turn 0:17:43.720 --> 0:17:47.440 that dial up and you quadrupled your spend what would 0:17:47.480 --> 0:17:50.320 it look like and feel like? And this is where 0:17:50.320 --> 0:17:52.679 it gets quite surprising. Most people are very linear in 0:17:52.720 --> 0:17:54.960 their answer. They go, oh, I'd have to watch my 0:17:54.960 --> 0:17:57.400 weight because I'd eat out four times a week hahaha. 0:17:57.440 --> 0:18:00.880 And I go, wait a minute, where would you eat out? 0:18:01.000 --> 0:18:03.720 Who would you bring with you? There's so many different 0:18:03.720 --> 0:18:07.320 ways beyond mere quantity, and you can really create some 0:18:07.400 --> 0:18:11.120 special things if you spend more, if you spend extravagantly 0:18:11.119 --> 0:18:13.080 on the things you love, as long as you cut 0:18:13.080 --> 0:18:14.760 costs mercilessly on the things you don't. 0:18:15.760 --> 0:18:18.720 I love that. This is great. See y'all find I 0:18:18.800 --> 0:18:22.800 was gonna have for me? Asked me questions? Girl? No, no, 0:18:23.000 --> 0:18:25.200 for real? This is like really helpful because what you're 0:18:25.320 --> 0:18:29.280 essentially saying is that it's really not The question is 0:18:29.320 --> 0:18:31.280 not what do I do in business? It's like, what 0:18:31.280 --> 0:18:33.480 do you do as Tiffany? And match the business? 0:18:33.640 --> 0:18:38.960 Yes, what is my rich life Tiffany? And then once 0:18:39.000 --> 0:18:45.080 I have that vivid, specific, huge vision, we're not shrinking 0:18:45.080 --> 0:18:48.800 our vision, we're maximizing it. Then where does the business 0:18:49.040 --> 0:18:51.040 fit in? And by the way, for your listeners, I 0:18:51.119 --> 0:18:54.720 bet this is common. So when I ask people what 0:18:54.880 --> 0:18:57.720 is your rich life. I often get this really funny 0:18:57.920 --> 0:19:00.800 response to the first one is I want to do 0:19:00.880 --> 0:19:04.080 what I want when I want. I go, God, not 0:19:04.200 --> 0:19:07.040 this answer again. I go, well, that's so interesting. I 0:19:07.080 --> 0:19:08.879 never heard that. So what do you want? And then 0:19:08.880 --> 0:19:11.720 they just stare at me blankly. They never thought about it. 0:19:11.840 --> 0:19:14.720 Think about we go to work, we answer ten million emails, 0:19:14.800 --> 0:19:17.320 we save our money, we listen to this podcast, and 0:19:17.359 --> 0:19:20.520 then what's it all for? We never even thought about it? 0:19:20.680 --> 0:19:23.280 What a waste. So that's the first one. The second 0:19:23.320 --> 0:19:28.320