WEBVTT - The BA Q&A: Save Or Invest?

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<v Speaker 1>Hey, hey, ba fam, It's Mandy here with another episode

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<v Speaker 1>of b a QA, our show where we take you

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<v Speaker 1>your questions and give you answers. Now, this is answers

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<v Speaker 1>with a lowercase A. I am not your financial advisor.

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<v Speaker 1>I am not your investment advisor. I'm not your career

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<v Speaker 1>advisor unless you work with me through my Mandy Money

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<v Speaker 1>Coaching service. But I am here to just give you

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<v Speaker 1>my ideas. Now. With that said, as we always say

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<v Speaker 1>in the show, as Tiffany would say if she were here,

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<v Speaker 1>see your grandmama, not us. I actually don't know why

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<v Speaker 1>she encourages anyone to sue their grandma, but you know what,

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<v Speaker 1>I'm just gonna go with it and love and big

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<v Speaker 1>virtual hugs to Tiffany. As always, let's get into today's show.

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<v Speaker 1>You know what, We're doing a lot of personal finance

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<v Speaker 1>questions today. It's been a minute. I feel like I

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<v Speaker 1>get so many career questions now, But let's get back

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<v Speaker 1>to business when it comes to money. Okay, y'all, Remember

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<v Speaker 1>you can send us your questions at Ambition Podcast at

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<v Speaker 1>gmail dot com or hit us up on Instagram and

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<v Speaker 1>we are on Instagram at brand Ambition Podcast. You can

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<v Speaker 1>also ping me directly. I'm at Mandy money on IG

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<v Speaker 1>love getting your questions. Remember you can be anonymous, Okay,

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<v Speaker 1>we don't have to put your entire business out there.

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<v Speaker 1>You're already being so generous to ask your question publicly

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<v Speaker 1>or semi publicly with the show. So just let us

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<v Speaker 1>know if you want us to change your name or

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<v Speaker 1>you know, let you remain anonymous. I get it. Money

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<v Speaker 1>is awkward, money is private. We're here for you. Okay,

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<v Speaker 1>let's dive into these money questions for today. Our first

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<v Speaker 1>question comes from IG from listener Elsa. Elsa says, which

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<v Speaker 1>should be a priority when you have a limited focus?

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<v Speaker 1>Should you focus on your emergency fund or investing in

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<v Speaker 1>a four to oh one k oh, Elsa, This is

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<v Speaker 1>a great question, and I think this is so I mean,

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<v Speaker 1>it's everything that it's something that so many workers go

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<v Speaker 1>through when you feel like it's so important to invest, right,

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<v Speaker 1>But isn't it also important to have cash savings on

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<v Speaker 1>the side. I don't think it's an either or situation.

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<v Speaker 1>I think it's a both. And so what I would

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<v Speaker 1>do is this gets down to the basics, right, So

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<v Speaker 1>sit down and come up with how much money do

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<v Speaker 1>you have leftover? After you pay all of your non

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<v Speaker 1>negotiable expenses, your mortgage or your rent, your car payment,

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<v Speaker 1>your daycare, whatever you need, food for the table, your

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<v Speaker 1>your must have expenses, and then what money do you

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<v Speaker 1>have leftover? Now, this is where you kind of want

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<v Speaker 1>to divide and conquer. Hopefully you've got a little bit

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<v Speaker 1>leftover of your budget. If you don't, then that's a

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<v Speaker 1>bigger issue. But let's assume that you've got money left over.

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<v Speaker 1>I would say take about I don't know, whatever percentage

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<v Speaker 1>you feel comfortable with. You can take fifty to fifty,

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<v Speaker 1>So take fifty percent of whatever you have left over.

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<v Speaker 1>You can put fifty percent of that money into your

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<v Speaker 1>savings account and then invest the rest. But don't forget

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<v Speaker 1>when it comes to your four to one K. If

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<v Speaker 1>you take advantage of the traditional four one K, which

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<v Speaker 1>is when you're actually putting money in pre tax, it

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<v Speaker 1>actually allows you to use money that otherwise would have

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<v Speaker 1>been paid to Uncle Sam out of your paycheck and

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<v Speaker 1>put that money directly into your retirement funds. And so

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<v Speaker 1>why I'm pointing that out is that, like let's say

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<v Speaker 1>your tax rate is twenty five percent, if you were to,

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<v Speaker 1>you know, take your paycheck and then put one hundred

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<v Speaker 1>dollars into your retirement account. If you went ahead, that's

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<v Speaker 1>one hundred dollars after tax, right, But if you hadn't

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<v Speaker 1>taken advantage of that pre tax four one K, that

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<v Speaker 1>could be one hundred and twenty five dollars because you're

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<v Speaker 1>doing that money, getting that money before Uncle Sam takes

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<v Speaker 1>his little cut. Okay, now he's going to get his

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<v Speaker 1>cut down the line when you start withdrawing those funds

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<v Speaker 1>in retirement. But that is one of the benefits of

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<v Speaker 1>a traditional four to one K that you get to

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<v Speaker 1>use money before those taxes are taken out, and then

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<v Speaker 1>it can grow and yay, be happy, and compounding interest

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<v Speaker 1>and all that magic will happen until you retire, and

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<v Speaker 1>then you can plan your sort of tax saving strategy

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<v Speaker 1>with a financial advisor down the line. But going back

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<v Speaker 1>to the central question, you know, is it an either

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<v Speaker 1>or should I just be saving money in my savings

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<v Speaker 1>or investing in a four to one K. I'm a

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<v Speaker 1>fan of doing both, and I wouldn't overthink necessarily, like

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<v Speaker 1>maybe it doesn't feel like a lot. Let's say you

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<v Speaker 1>only have one hundred dollars or a couple hundred dollars

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<v Speaker 1>that you're able to part with each month, and you

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<v Speaker 1>split that in half and it's fifty towards your savings

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<v Speaker 1>and fifty towards your four to one K. It's still something,

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<v Speaker 1>and at the end of the day, something is better

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<v Speaker 1>than nothing. When I was starting out, automation was such

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<v Speaker 1>a huge, huge component, and I can look back at

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<v Speaker 1>it now, you know, ten eleven, twelve years since I

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<v Speaker 1>started to invest and really credit not how much I

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<v Speaker 1>was investing, but how I was investing. With my success,

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<v Speaker 1>it was the fact that I was investing automatically that

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<v Speaker 1>helped me grow my net worth and ten x my

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<v Speaker 1>net worth in just these past five years, from seventy

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<v Speaker 1>K to seven hundred K, as I've talked about. So

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<v Speaker 1>when I go back to that automation, and what I

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<v Speaker 1>mean by that is you go to your employer or

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<v Speaker 1>your payroll, whatever it is. You can probably do it

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<v Speaker 1>yourself or get in touch with someone from benefits and

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<v Speaker 1>ask them how can I automatically contribute to my four

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<v Speaker 1>to one K where I don't have to go in

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<v Speaker 1>and manually do it each month. So what I would

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<v Speaker 1>do is I go into my paycheck online platform and

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<v Speaker 1>I would say you know, after everything is taken out,

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<v Speaker 1>I want this much in my four to one k

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<v Speaker 1>automatically deducted, and then I would actually also automatically transfer

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<v Speaker 1>money to my savings account. So you can tell your

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<v Speaker 1>payroll department, here's my savings account routing number, here's where

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<v Speaker 1>you can find it. Please make sure that fifty dollars

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<v Speaker 1>or one hundred dollars or whatever it is, goes into

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<v Speaker 1>the savings account every paycheck. And what was so magical

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<v Speaker 1>about this, the fact that I had my investing and

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<v Speaker 1>my savings fund automatically deducted from my paycheck, is that

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<v Speaker 1>when that paycheck actually hit my checking account, I knew

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<v Speaker 1>it was money that I could spend, and I knew

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<v Speaker 1>it was money that I didn't have. I didn't have

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<v Speaker 1>to feel guilty about spending it on, you know, whatever

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<v Speaker 1>I want to to do, go to a show, buy

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<v Speaker 1>myself a new outfit, get fancy coffee in the morning, like,

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<v Speaker 1>do whatever I needed to do, because that was the

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<v Speaker 1>money I had to play with. Of course, after my

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<v Speaker 1>rent and all that other stuff was paid for. So automation, automation, automation.

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<v Speaker 1>And believe me, if you just start with a little

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<v Speaker 1>bit and you automate it and you are consistent, you

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<v Speaker 1>will see that investment grow over time, and also you'll

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<v Speaker 1>have your emergency fund continually being reinforced with those additional funds.

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<v Speaker 1>So I hope that was helpful. Please don't stop yourself

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<v Speaker 1>thinking that you have to come up with the perfect

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<v Speaker 1>recipe between savings or investing. Tweak it as you go.

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<v Speaker 1>Something may come up and you may say, oh, I

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<v Speaker 1>actually had a car repair, or I was out of

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<v Speaker 1>work for a couple months, and my emergency fund is

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<v Speaker 1>completely depleted, so let me ratchet it up and shift

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<v Speaker 1>the balance more towards saving cash versus my four to

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<v Speaker 1>one K for a while. It's okay. It's a living,

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<v Speaker 1>breathing plan and you've got a bake and that flexibility

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<v Speaker 1>so your financial plan or strategy like doesn't become something

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<v Speaker 1>so rigid that it stops you from actually making progress. Okay,

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<v Speaker 1>thank you so much for your question, Elsa. Let's get

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<v Speaker 1>back to the mail bag and see what we got here.

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<v Speaker 1>Ooh I, okay, this one hits a little you know what,

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<v Speaker 1>This question I bet will hit close to home for

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<v Speaker 1>a lot of our listeners, because especially our listeners who

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<v Speaker 1>are in relationships, because as you know, when you become

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<v Speaker 1>partners with someone life partners. Now, I don't care if

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<v Speaker 1>you're married or not married, but if you're a life

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<v Speaker 1>partner with someone you're committed to each other. It's not

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<v Speaker 1>just the partner often who you're committing yourselves to, it's

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<v Speaker 1>also their family. So that brings me to my second

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<v Speaker 1>questions a day from a listener who would like to

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<v Speaker 1>remain anonymous, and this listener asks, Nandy, do you believe

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<v Speaker 1>that someone's son should constantly give his mother large amounts

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<v Speaker 1>of money because he thinks that she doesn't make enough Anonymous.

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<v Speaker 1>Very short question, but so loaded and so complex. I'm

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<v Speaker 1>going to make some assumptions here because we don't have

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<v Speaker 1>a ton of information, but I'm going to assume that

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<v Speaker 1>you are in a life partnership with this particular son

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<v Speaker 1>in question, and that he has been giving his mother money,

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<v Speaker 1>and I'm going to assume that maybe you would like

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<v Speaker 1>this to stop now. Listen, I have been in this

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<v Speaker 1>situation myself, not where I have a spouse or partner

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<v Speaker 1>consistently giving money to his parents, but certainly there have

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<v Speaker 1>been times. I mean, my husband and I have been

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<v Speaker 1>together for a decade now where once in a while,

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<v Speaker 1>a family member may need help, and maybe it's someone

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<v Speaker 1>who's asking for help from him or from me, But

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<v Speaker 1>first and foremost, we always kind of tackle that question

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<v Speaker 1>together as a unit. And that took me probably until

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<v Speaker 1>I was had a ring on the finger and was married,

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<v Speaker 1>married capital and married for me to actually bring him

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<v Speaker 1>into every financial decision I made. It was a little

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<v Speaker 1>bit more difficult for me because you know, I'm an

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<v Speaker 1>independent woman like so many of us are, and I

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<v Speaker 1>have my own money, So do I need someone's permission? No,

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<v Speaker 1>But when I had to recognize, or at least for

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<v Speaker 1>our relationship, it worked better for me to recognize, like,

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<v Speaker 1>we are a unit. Even though this money technically came

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<v Speaker 1>into my account, we are a team now and our

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<v Speaker 1>goals we should all be on the same page about

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<v Speaker 1>what we're doing with our money and how it's impacting

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<v Speaker 1>our goals for example. So yeah, we tackle those decisions together.

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<v Speaker 1>And there have been times where one of us hasn't

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<v Speaker 1>felt comfortable with giving a certain amount of money to

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<v Speaker 1>a family member. And I'm not going to name names here,

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<v Speaker 1>that's not what this is about. But the central issue was, like, oh,

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<v Speaker 1>someone asked one of us for money, who we cared

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<v Speaker 1>about and we would have liked to have been able

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<v Speaker 1>to help them, but as a unit, we weren't on

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<v Speaker 1>the same page. And there has been times on both

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<v Speaker 1>sides where we had to accept that okay, well, and

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<v Speaker 1>then we would kind of compromise. Okay, if it's not

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<v Speaker 1>this amount of money, what do we as a unit

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<v Speaker 1>feel comfortable with? And there are those family members y'all

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<v Speaker 1>know what I'm talking about. They are the ones who

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<v Speaker 1>you know, it's a little bit then, and then it's

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<v Speaker 1>a little bit more later, and then it becomes like

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<v Speaker 1>it doesn't start, you know, as a situation where you

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<v Speaker 1>know you're getting a question or request regularly, but it

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<v Speaker 1>becomes more regular, and then there's a trend, and then

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<v Speaker 1>there's a theme, and then it becomes an issue and

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<v Speaker 1>then you have to kind of really revisit it as

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<v Speaker 1>a partnership and ask yourselves like, are we what are

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<v Speaker 1>we signing up here for? And let's get real, these

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<v Speaker 1>requests are going to keep coming, so what is our

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<v Speaker 1>what's our decision here? Are we going to keep saying yes?

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<v Speaker 1>And if it's having an impact on your ability to

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<v Speaker 1>reach your financial goals as a unit as a family,

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<v Speaker 1>then one thousand percent that that warrants a conversation. So

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<v Speaker 1>I get it. I get what you're saying, anonymous. So

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<v Speaker 1>it sounds like you're frustrated because your partner has been

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<v Speaker 1>giving his mother money, you say, large amounts of money

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<v Speaker 1>because she doesn't make enough. This is a situation where

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<v Speaker 1>you should talk to him, like sit down and say

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<v Speaker 1>how much and how long are we comfortable continuing to

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<v Speaker 1>financially support your mother? And if the answer is this

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<v Speaker 1>is my which is very well, maybe this is my mom.

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<v Speaker 1>I can't let my mom go hungry, et cetera. Like

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<v Speaker 1>what's your response going to be and are you going

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<v Speaker 1>to be able to make peace with that? It's really

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<v Speaker 1>hard to tell someone that this family member, especially when

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<v Speaker 1>it's a parent. It's not always a parent. It's a

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<v Speaker 1>lot easier to say no if it's like their second

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<v Speaker 1>third cousin, right, But when it's a mom, his answer

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<v Speaker 1>may be listen, this is really this is my mother.

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<v Speaker 1>This is very important to me. I'm making I'm doing well,

0:11:42.880 --> 0:11:46.280
<v Speaker 1>so I feel responsible for assisting her. And it may

0:11:46.320 --> 0:11:49.679
<v Speaker 1>take you some time to at least to broach this

0:11:49.760 --> 0:11:52.960
<v Speaker 1>conversation and not have it ultimately, like not have it

0:11:53.000 --> 0:11:55.600
<v Speaker 1>immediately go to that place of you're telling me I

0:11:55.600 --> 0:11:57.920
<v Speaker 1>shouldn't give money to my own mother, like I can

0:11:57.960 --> 0:12:01.240
<v Speaker 1>already hear the argument right, kind of got to explain

0:12:01.320 --> 0:12:04.600
<v Speaker 1>to this person and what may work is reminding him

0:12:04.720 --> 0:12:08.360
<v Speaker 1>of how his decision and how this money that he

0:12:08.440 --> 0:12:11.199
<v Speaker 1>is giving to his mother is impacting you, guys and

0:12:11.280 --> 0:12:15.439
<v Speaker 1>your family your goals. You know, what are you unable

0:12:15.480 --> 0:12:18.040
<v Speaker 1>to accomplish with the amount of money that he's been

0:12:18.040 --> 0:12:20.680
<v Speaker 1>giving to his mother. You want to always bring it

0:12:20.720 --> 0:12:23.240
<v Speaker 1>back to yourselves as a team. We are a team.

0:12:23.559 --> 0:12:27.000
<v Speaker 1>Here's how this amount of money is impacting our capability

0:12:27.080 --> 0:12:29.520
<v Speaker 1>as a family to reach these goals that I thought

0:12:29.559 --> 0:12:31.920
<v Speaker 1>we were on the same page about. And it may

0:12:31.960 --> 0:12:34.440
<v Speaker 1>not be an all or nothing situation. It may not

0:12:34.520 --> 0:12:37.880
<v Speaker 1>be where you know, he has to stop giving everything

0:12:38.520 --> 0:12:40.960
<v Speaker 1>right away. You may just be asking for can we

0:12:41.000 --> 0:12:43.200
<v Speaker 1>scale it back a little bit? Or you know, this

0:12:43.280 --> 0:12:45.400
<v Speaker 1>is something that I've had to get better at, especially

0:12:45.400 --> 0:12:48.240
<v Speaker 1>when it comes to family who's asking for money and

0:12:48.280 --> 0:12:51.040
<v Speaker 1>it starts out as one time, but then it's a

0:12:51.080 --> 0:12:53.080
<v Speaker 1>few times, and then it's a couple of times a year.

0:12:53.320 --> 0:12:55.400
<v Speaker 1>It's like, what's the core issue here? How can I

0:12:55.440 --> 0:12:58.600
<v Speaker 1>actually be helpful besides just giving money. Is there a

0:12:58.640 --> 0:13:03.560
<v Speaker 1>cash flow problem, has their rent gone up, has something

0:13:03.600 --> 0:13:06.959
<v Speaker 1>else in their life, has something else in their personal

0:13:06.960 --> 0:13:10.680
<v Speaker 1>finance has kind of fallen created an issue where they're

0:13:10.720 --> 0:13:12.839
<v Speaker 1>not able to cover their expenses anymore, And how can

0:13:12.840 --> 0:13:15.760
<v Speaker 1>we help solve that core issue? Maybe they could use

0:13:15.800 --> 0:13:19.720
<v Speaker 1>some help around consolidating debt or looking for alternative ways

0:13:19.760 --> 0:13:22.240
<v Speaker 1>to pay things, or decreasing their expenses in some way.

0:13:22.320 --> 0:13:25.439
<v Speaker 1>So I think that that's the next level of help

0:13:25.880 --> 0:13:29.200
<v Speaker 1>that family can also use besides just kind of blindly

0:13:29.679 --> 0:13:32.959
<v Speaker 1>writing checks, which can start to feel like to your

0:13:33.000 --> 0:13:35.320
<v Speaker 1>point and probably what you're feeling right now, which is

0:13:35.520 --> 0:13:37.440
<v Speaker 1>when is this ever going to stop? Is it ever

0:13:37.480 --> 0:13:40.600
<v Speaker 1>going to stop? And those are super valid questions to have,

0:13:41.200 --> 0:13:44.040
<v Speaker 1>and you need to ask those questions, and you need

0:13:44.080 --> 0:13:46.280
<v Speaker 1>to get on the same page about the answers sooner

0:13:46.360 --> 0:13:49.160
<v Speaker 1>rather than later, because otherwise it's going to be festering.

0:13:49.160 --> 0:13:52.400
<v Speaker 1>You're going to start to feel resentment. Those Thanksgiving dinners

0:13:52.440 --> 0:13:55.040
<v Speaker 1>are going to get a lot more awkward. Okay, it's

0:13:55.080 --> 0:13:57.480
<v Speaker 1>going to get awkward around her birthday or Mother's Day

0:13:57.559 --> 0:13:59.160
<v Speaker 1>when you're like, and now I got to buy her

0:13:59.240 --> 0:14:03.000
<v Speaker 1>some flowers, like and a gift, like it's just better

0:14:03.040 --> 0:14:07.000
<v Speaker 1>to have those conversations upfront with your partner, as awkward

0:14:07.200 --> 0:14:10.800
<v Speaker 1>and painful as they may be, and just sort of say,

0:14:11.000 --> 0:14:13.920
<v Speaker 1>I'm fine supporting family, but let's go on the same

0:14:13.960 --> 0:14:17.640
<v Speaker 1>page about how much, how often, and what other resources

0:14:17.679 --> 0:14:21.080
<v Speaker 1>can we provide them with to help solve the deeper

0:14:21.200 --> 0:14:24.200
<v Speaker 1>foundational issues that are here. And you know what, it

0:14:24.240 --> 0:14:27.880
<v Speaker 1>may also be asking for support from other family members

0:14:28.280 --> 0:14:31.440
<v Speaker 1>who may also have something to contribute here. Right. I've

0:14:31.480 --> 0:14:34.120
<v Speaker 1>talked to folks, especially when you have people who are

0:14:34.120 --> 0:14:39.080
<v Speaker 1>the first generation, you know, first generation wealth owners or

0:14:39.240 --> 0:14:42.880
<v Speaker 1>just owning, you know, having resources, having funds to give

0:14:43.400 --> 0:14:45.440
<v Speaker 1>and for the first time, and there's there's a deep

0:14:45.440 --> 0:14:48.000
<v Speaker 1>responsibility and a sense of debt that you feel like

0:14:48.040 --> 0:14:51.040
<v Speaker 1>you owe to your family to help them, right, But

0:14:51.120 --> 0:14:53.720
<v Speaker 1>you're not always the only one who can shoulder that burden.

0:14:53.760 --> 0:14:57.480
<v Speaker 1>And sometimes people put that burden on their own shoulders

0:14:57.520 --> 0:15:00.280
<v Speaker 1>and tell themselves a story about how, oh, if it's

0:15:00.320 --> 0:15:02.480
<v Speaker 1>not me, it's no one and they rely on me.

0:15:02.920 --> 0:15:05.280
<v Speaker 1>But there may be other people who can support as well.

0:15:05.360 --> 0:15:07.960
<v Speaker 1>And if you share that burden, it may it may

0:15:08.040 --> 0:15:11.840
<v Speaker 1>make the load a lot easier to carry. I just

0:15:11.880 --> 0:15:15.440
<v Speaker 1>know that it's an awkward, uncomfortable conversation, but it's one

0:15:15.480 --> 0:15:17.560
<v Speaker 1>that is so so important to go ahead and have

0:15:17.720 --> 0:15:20.280
<v Speaker 1>sooner rather than later. You don't want this to fester

0:15:20.800 --> 0:15:24.000
<v Speaker 1>and to cause cracks in the relationship because ultimately, you

0:15:24.080 --> 0:15:26.000
<v Speaker 1>too are a unit. Right, I'm assuming that you're in

0:15:26.040 --> 0:15:28.920
<v Speaker 1>a lifetime committed partnership. You two are in a unit together,

0:15:29.480 --> 0:15:32.520
<v Speaker 1>So that's what you at its core. At its core,

0:15:32.600 --> 0:15:35.320
<v Speaker 1>that's what you have to protect is your relationship as

0:15:35.360 --> 0:15:39.400
<v Speaker 1>a couple, and transparency, honesty and hopefully being open with

0:15:39.440 --> 0:15:42.200
<v Speaker 1>one another will help. All right, let me take a

0:15:42.240 --> 0:15:44.120
<v Speaker 1>quick break. I will be right back with our third

0:15:44.160 --> 0:15:48.200
<v Speaker 1>and final question. All right, be a fam I am

0:15:48.240 --> 0:15:51.160
<v Speaker 1>back with our third and final question. This one comes

0:15:51.200 --> 0:15:55.680
<v Speaker 1>from Adrian. Adrian, who is a member of Tiffity's Dreamcatchers group,

0:15:56.120 --> 0:15:58.480
<v Speaker 1>says Mandy, I'm hoping you can help me. I've searched

0:15:58.520 --> 0:16:00.560
<v Speaker 1>the Dreamcatchers group and I can't see to find an

0:16:00.600 --> 0:16:03.440
<v Speaker 1>answer to the best form of payment you should use

0:16:03.480 --> 0:16:06.720
<v Speaker 1>when paying a settlement for a judgment. I appreciate any

0:16:06.760 --> 0:16:10.800
<v Speaker 1>help you can provide. All right, Adrian, I think this

0:16:10.840 --> 0:16:13.520
<v Speaker 1>is a pretty simple question. So it sounds like there's

0:16:13.560 --> 0:16:16.960
<v Speaker 1>been a judgment. So when she's talking about judgment, so basically,

0:16:17.000 --> 0:16:19.680
<v Speaker 1>when you have let's say you have a debt that

0:16:19.760 --> 0:16:23.280
<v Speaker 1>has been passed due and it's gone past collections and

0:16:23.400 --> 0:16:26.920
<v Speaker 1>the creditor lender has actually sued in order to recoup

0:16:27.160 --> 0:16:30.720
<v Speaker 1>its debt, then it can go to a judge and

0:16:30.920 --> 0:16:33.840
<v Speaker 1>the judge will issue a ruling. And for a lot

0:16:33.880 --> 0:16:36.240
<v Speaker 1>of people, they may never even know that there's a

0:16:36.320 --> 0:16:38.560
<v Speaker 1>lawsuit against them and may just kind of become another

0:16:38.600 --> 0:16:40.720
<v Speaker 1>piece of mail that's in the pile that but anyway,

0:16:40.720 --> 0:16:43.920
<v Speaker 1>it can happen, so a judge may ultimately issue a

0:16:44.000 --> 0:16:47.239
<v Speaker 1>ruling and say, okay, yes you do owe this creditor

0:16:47.240 --> 0:16:49.840
<v Speaker 1>this amount of money, and then it comes time to

0:16:49.840 --> 0:16:52.360
<v Speaker 1>pay the piper, right. So from there, what you can

0:16:52.400 --> 0:16:55.200
<v Speaker 1>do is you can try to settle for less. So

0:16:55.400 --> 0:16:57.280
<v Speaker 1>you could, you know, get your judgment of what you

0:16:57.360 --> 0:16:59.040
<v Speaker 1>owe and then go to the creditor and say you know,

0:16:59.200 --> 0:17:01.760
<v Speaker 1>or to the to the judge and say you know,

0:17:01.800 --> 0:17:04.600
<v Speaker 1>I actually only have this amount of money. Is this okay?

0:17:04.680 --> 0:17:06.840
<v Speaker 1>And then try to settle it for less, try to

0:17:06.880 --> 0:17:09.879
<v Speaker 1>work out a payment plan. Unfortunately, what could happen is

0:17:09.920 --> 0:17:12.800
<v Speaker 1>that your wages are actually garnished as part of a settlement,

0:17:12.920 --> 0:17:16.879
<v Speaker 1>part of a judgment settlement. Now that there's some exceptions,

0:17:17.320 --> 0:17:19.600
<v Speaker 1>you know, for people who aren't a fixed income, so

0:17:20.119 --> 0:17:22.879
<v Speaker 1>that's not a blanket statement by any means. But it

0:17:22.920 --> 0:17:26.080
<v Speaker 1>can be possible that your wages can just be automatically garnished.

0:17:26.440 --> 0:17:28.280
<v Speaker 1>That's one way of paying it back, which is not

0:17:28.359 --> 0:17:30.760
<v Speaker 1>even in your control. But we'll add that to the

0:17:30.760 --> 0:17:34.040
<v Speaker 1>list of possibilities. One is that your wages could be garnished.

0:17:34.080 --> 0:17:36.520
<v Speaker 1>I think it's up to fifteen percent, but don't quote

0:17:36.560 --> 0:17:39.520
<v Speaker 1>me on that. It really will depend also on the states,

0:17:39.760 --> 0:17:42.879
<v Speaker 1>the laws in your state, So your wages could be garnished.

0:17:43.119 --> 0:17:45.320
<v Speaker 1>You could just make one lump sum payment, which can

0:17:45.359 --> 0:17:48.200
<v Speaker 1>probably be done by check. I doubt it by cash,

0:17:48.280 --> 0:17:51.199
<v Speaker 1>because who even uses cash anymore. Finding the contact for

0:17:51.240 --> 0:17:53.280
<v Speaker 1>the lender and getting on the phone with them, with

0:17:53.359 --> 0:17:56.440
<v Speaker 1>their debt collector's office or whatever who handles that kind

0:17:56.480 --> 0:17:59.280
<v Speaker 1>of thing and making a payment over the phone can

0:17:59.320 --> 0:18:02.119
<v Speaker 1>be another way to make that payment. You've probably got

0:18:02.119 --> 0:18:04.320
<v Speaker 1>a couple of options, but I think the best person

0:18:04.400 --> 0:18:07.560
<v Speaker 1>to ask is going to be the whoever issued you

0:18:07.600 --> 0:18:10.119
<v Speaker 1>the judgment, or the lender who has been awarded a

0:18:10.240 --> 0:18:12.879
<v Speaker 1>judgment against you to find out what your next steps

0:18:12.880 --> 0:18:15.000
<v Speaker 1>are at this point, though, you definitely don't want to

0:18:15.040 --> 0:18:17.120
<v Speaker 1>let it go too long before making those payments because

0:18:17.160 --> 0:18:19.879
<v Speaker 1>I think that's what actually triggers them to garnish your

0:18:19.880 --> 0:18:23.040
<v Speaker 1>wages and that sucks. Okay, so you don't want to

0:18:23.160 --> 0:18:26.800
<v Speaker 1>get that bad all right, Thank you very much. Adrian

0:18:26.920 --> 0:18:29.919
<v Speaker 1>also shout out to Dreamcatchers. If you're in Tiffany's Dreamcatchers

0:18:29.960 --> 0:18:33.200
<v Speaker 1>Facebook group, it's an amazing resource. I know their dream

0:18:33.200 --> 0:18:35.439
<v Speaker 1>Catchers are on there all the time, supporting one another

0:18:35.480 --> 0:18:38.280
<v Speaker 1>and sharing their personal finance wins and challenges and questions.

0:18:38.320 --> 0:18:41.520
<v Speaker 1>So if you're not a member, go check them out.

0:18:42.440 --> 0:18:45.240
<v Speaker 1>All right. That is our BAQ and A for this week, y'all.

0:18:45.280 --> 0:18:47.439
<v Speaker 1>Thank you so much for your questions. Again. Hit us

0:18:47.520 --> 0:18:50.119
<v Speaker 1>up at brandabissionpodcast dot com, or you can submit a

0:18:50.200 --> 0:18:53.600
<v Speaker 1>question or go to ig we are at brand Ambition Podcast.

0:18:53.680 --> 0:18:56.760
<v Speaker 1>You can also reach us by email Brand Ambition Podcast

0:18:56.920 --> 0:19:03.720
<v Speaker 1>at gmail dot com