WEBVTT - BA Q&A: Pay Off My Debt Or Build My Savings? 0:00:06.080 --> 0:00:10.039 It's time for the b a q a A that'd 0:00:10.039 --> 0:00:12.680 be a q a what you say that'd be a 0:00:13.039 --> 0:00:17.000 q ain't no man day to be a qa Just timpanay. 0:00:17.400 --> 0:00:22.440 The b a qa a man is not here. As 0:00:22.440 --> 0:00:24.960 you can see, I'm in the step buy my little son. 0:00:25.120 --> 0:00:25.840 But I got y'all. 0:00:26.280 --> 0:00:29.560 We're going to take some questions and I've got some answers. 0:00:29.600 --> 0:00:32.520 But as I always say, I'm not your mama. 0:00:32.720 --> 0:00:33.760 No, I'm not. 0:00:33.720 --> 0:00:37.360 Your cousin, well, your financial internet cousin. I'm not your 0:00:37.360 --> 0:00:41.040 financial advisor. I'm not your attorney. I'm not your doctor child, 0:00:41.600 --> 0:00:44.440 I'm not even your engineer. But what I am is 0:00:44.560 --> 0:00:48.680 a smart black girl who can answer some questions that 0:00:48.720 --> 0:00:52.480 you take with the smallest tiniest grain of salt aka 0:00:53.080 --> 0:00:56.160 sue somebody else you know, Take what I say with 0:00:56.200 --> 0:00:58.000 a grain of salt. Ask the people that you pay 0:00:58.480 --> 0:01:00.960 like what you should do. Do. Let's get started, b 0:01:01.080 --> 0:01:02.960 a qa And if you ever want to ask a question, 0:01:03.480 --> 0:01:05.720 best thing to do is go head on over to 0:01:05.800 --> 0:01:09.520 brianambischon podcast on Instagram, send us a question. 0:01:09.360 --> 0:01:12.560 There, and or go ahead on and. 0:01:13.240 --> 0:01:17.320 To briannabishonpodcast dot com and click contact us. 0:01:17.800 --> 0:01:19.240 Yeah, all right, let's get started. 0:01:19.319 --> 0:01:21.760 Let me see, let me say, let me say, let 0:01:21.800 --> 0:01:24.680 me say, quick question from Patrice. But I think I'm 0:01:24.720 --> 0:01:28.680 gonna do three today. Patrice asks a question. She says, Hello, Tiffany, 0:01:29.120 --> 0:01:32.080 I love the podcast. And here you mentioned financial advisors 0:01:32.080 --> 0:01:32.840 a few times. 0:01:33.200 --> 0:01:33.920 Do you have any. 0:01:33.760 --> 0:01:37.240 Suggestions on how to find one I do or anyone 0:01:37.280 --> 0:01:40.200 that you could recommend. I'm single mom and want to 0:01:40.319 --> 0:01:43.240 meet some goals to prepare for her going to college. 0:01:43.280 --> 0:01:46.320 First of all, yes, single mama. Okay, now here's what 0:01:46.319 --> 0:01:46.840 you're gonna do. 0:01:47.120 --> 0:01:50.280 Patrese. So I wrote this book called Geek. It was money. 0:01:50.880 --> 0:01:52.760 I'm not gonna tell you that book, right, but what 0:01:52.800 --> 0:01:55.200 you are gonna do is get something far free. You're 0:01:55.240 --> 0:01:58.320 going to go to get Good with Money dot com. 0:01:58.320 --> 0:02:00.920 I'm literally going there now to make sure it's all good. 0:02:01.360 --> 0:02:03.280 And you're going to click at the top it says 0:02:03.600 --> 0:02:05.960 GGWM for gick Ors Money. 0:02:06.000 --> 0:02:08.680 Book Club Kit. You find that, click on the kit 0:02:09.280 --> 0:02:09.919 sis right. 0:02:10.240 --> 0:02:13.280 Then you're gonna download the kid and when you do, 0:02:13.720 --> 0:02:17.720 it's gonna open up one it'll it'll it'll send you 0:02:17.760 --> 0:02:20.280 a I guess a PDF or link, but you'll be 0:02:20.320 --> 0:02:22.200 able to open up right away and what's so great 0:02:22.200 --> 0:02:26.840 about the kit is if you scroll down zam zamz 0:02:27.800 --> 0:02:33.119 If you scroll down to chapter ten on the kit 0:02:34.320 --> 0:02:39.240 pick your money Team, there's gonna be these resources, right Like, 0:02:39.800 --> 0:02:41.920 there's gonna be these resources that you can use to 0:02:42.040 --> 0:02:45.799 find who you need. Like if I click, let me see, No, 0:02:46.080 --> 0:02:49.359 where is it? Oh? Meanwhile, girl, I'm on the wrong thing. 0:02:49.680 --> 0:02:51.800 I was like, where is this. I'm looking at the 0:02:51.800 --> 0:02:55.200 book club kit. I mean, that's great. You could definitely 0:02:55.240 --> 0:02:57.120 go get your book club kit on two, but I 0:02:57.160 --> 0:02:58.600 want you to not get the book club get I 0:02:58.639 --> 0:03:01.200 want you to go there and get the toolkit because 0:03:01.200 --> 0:03:02.959 I was like, this doesn't look like what I said 0:03:03.240 --> 0:03:05.240 what you should have. You're going to get the toolkit 0:03:05.280 --> 0:03:07.760 because that's really important. And I still want you to 0:03:07.760 --> 0:03:12.840 scroll down to chapter ten because in the toolkit you 0:03:12.880 --> 0:03:14.200 will find as soon as you put in your name 0:03:14.240 --> 0:03:16.359 in your email, it opens up right away to the website. 0:03:16.720 --> 0:03:18.840 And if you go scroll, scrow, scrow, I want you 0:03:18.880 --> 0:03:19.600 to The reason. 0:03:19.440 --> 0:03:21.160 Why I want you to go here is because it's 0:03:21.240 --> 0:03:23.560 more than just here's a list of financial advisors. 0:03:24.120 --> 0:03:25.720 There are a bunch of things. 0:03:25.760 --> 0:03:30.519 So there is this this template that I created called 0:03:30.760 --> 0:03:33.880 my sole called financial Life which is literally a template 0:03:33.919 --> 0:03:37.160 where it's like all of it is a sheet that 0:03:37.160 --> 0:03:39.160 you can fill out with all of your financial information. 0:03:39.280 --> 0:03:43.720 So when you interview financial planners ideally certified financial planners 0:03:44.000 --> 0:03:46.360 that you are, don't forget what to share with them, 0:03:46.440 --> 0:03:49.360 Like I like to actually share my my my sole 0:03:49.440 --> 0:03:52.200 called financial life template with them, like here's everything you 0:03:52.360 --> 0:03:54.840 need to know about my finances. Let's talk, right, So 0:03:54.880 --> 0:03:57.000 that's one that's there. This is under chapter ten on 0:03:57.040 --> 0:04:01.040 the toolkit at get goodwith Money dot Com. Also there 0:04:01.080 --> 0:04:03.320 you're also going to find some sites that I recommend, 0:04:03.800 --> 0:04:08.040 like the na p F A fee only network, XY Planning. 0:04:08.080 --> 0:04:10.880 That's all gonna be there if you're looking even to 0:04:10.920 --> 0:04:13.440 find it, like an accountant, there's going to be information there. 0:04:13.880 --> 0:04:15.800 And so it's just like it's just there's just so 0:04:15.920 --> 0:04:18.039 many resources there that that are going to help you. 0:04:18.080 --> 0:04:20.440 So I would go to get Go with Money dot Com. 0:04:20.480 --> 0:04:23.520 Click on the tool kit, scroll to chapter ten. Don't 0:04:23.560 --> 0:04:26.240 just get where you can find a financial planner. I 0:04:26.279 --> 0:04:29.279 also want you to get like what questions you should 0:04:29.279 --> 0:04:34.440 ask them and what and like like here's this temple 0:04:34.480 --> 0:04:36.440 that you can fill out with your finances so they 0:04:36.480 --> 0:04:38.000 know like whether or not you might be a fit 0:04:38.040 --> 0:04:38.320 for them. 0:04:38.880 --> 0:04:42.640 So I hope that's helpful. Lansing. 0:04:43.640 --> 0:04:46.919 Next on the docket, we have a question that we 0:04:46.960 --> 0:04:49.880 get a lot. I'm gonna give you a name. Let's 0:04:49.880 --> 0:05:00.680 call you Denise asks Hey, Tiffany and Mandra love you question. 0:05:00.880 --> 0:05:04.159 I never know whether or not to pay down debt 0:05:04.520 --> 0:05:08.080 or save what comes first, the chicken, nub the egg. 0:05:08.800 --> 0:05:10.240 Well she didn't say the chicken or the egg. I 0:05:10.240 --> 0:05:10.719 had to that part. 0:05:11.480 --> 0:05:14.680 So when you are paying down, when you have some 0:05:14.760 --> 0:05:18.400 extra money left over, if you know you're fortunate there 0:05:18.560 --> 0:05:21.600 you know there is that question. Do I prioritize paying 0:05:21.640 --> 0:05:26.000 down debt? Do I prioritize savings? And the answer is 0:05:26.279 --> 0:05:29.480 it depends what I say. Your name was fake name, Chanise. 0:05:29.920 --> 0:05:35.039 It depends Chenese. Because if you have debt that is expensive, 0:05:35.279 --> 0:05:38.159 which most debt is meaning over double digits like some 0:05:38.200 --> 0:05:44.200 people have debt it's fifteen percent, twenty percent double digit debt. 0:05:44.520 --> 0:05:47.400 I want you to over index and pay more towards 0:05:47.440 --> 0:05:52.680 paying down debt because right now, let me see what 0:05:52.720 --> 0:05:54.520 banks are giving as far as interest. Right we're about 0:05:54.520 --> 0:06:00.920 to look it up about to see like what banks 0:06:00.920 --> 0:06:04.080 are doing as far as interest rates, let's slay like 0:06:04.200 --> 0:06:07.279 I'm trying to think, like what a high yield savings 0:06:07.320 --> 0:06:13.880 accounts is giving right now? High yield savings accounts, Okay, okay, 0:06:14.800 --> 0:06:20.640 right now the highest I'm saying is about four point 0:06:20.720 --> 0:06:27.400 five percent. Okay, well I actually that's old, so that's weird. 0:06:27.640 --> 0:06:31.360 Why is it not showing anyway? But right now, yeah, 0:06:31.520 --> 0:06:34.760 about four point five percent? Right, So, if your debt 0:06:34.880 --> 0:06:39.840 is costing you ten percent, and high yield meaning like 0:06:39.880 --> 0:06:41.839 the highest you're getting right out here in the streets 0:06:42.360 --> 0:06:46.480 is four and a half percent, ten percent is bringing 0:06:46.520 --> 0:06:46.919 you down. 0:06:47.400 --> 0:06:49.440 Four percent is halfway bringing you back up. 0:06:49.720 --> 0:06:51.720 So do you see why it's important to pay off 0:06:51.760 --> 0:06:53.680 the thing that's actually costing you the most amount of 0:06:53.720 --> 0:06:57.320 money because you cannot save what the debt is costing you. 0:06:58.000 --> 0:06:59.479 So what I would say. 0:06:59.839 --> 0:07:02.480 Is is I want you to focus on getting rid 0:07:02.600 --> 0:07:04.960 of expensive debt now. I don't want you to not save. 0:07:05.120 --> 0:07:07.440 So let's just say I had one hundred dollars, I 0:07:07.520 --> 0:07:09.440 might say to myself, I'm gonna put twenty five dollars 0:07:09.440 --> 0:07:12.280 into savings because savings is like a seat belt. 0:07:12.600 --> 0:07:14.840 You know, you're gonna have to lean into that safety 0:07:14.880 --> 0:07:15.120 of it. 0:07:15.040 --> 0:07:18.320 All that's just how it goes, you know, Like, so 0:07:18.400 --> 0:07:21.280 you should have something going towards savings and then maybe 0:07:21.280 --> 0:07:23.680 I put seventy five dollars toward paying down that debt 0:07:23.680 --> 0:07:25.800 because the debt is costing me way too much money. 0:07:25.880 --> 0:07:27.480 But let's just say I had like some student loan 0:07:27.520 --> 0:07:29.760 debt and the interest rate was like three percent or 0:07:29.760 --> 0:07:31.720 something like that. Then I would over in debts on 0:07:31.760 --> 0:07:33.720 the savings because the savings is just making me more 0:07:33.760 --> 0:07:35.840 than the student loan is costing me. So I would 0:07:35.880 --> 0:07:38.840 say maybe like seventy five into savings twenty five to 0:07:38.920 --> 0:07:40.640 pay you know, the student loan debt off. 0:07:40.920 --> 0:07:41.960 I hope that makes sense. 0:07:41.960 --> 0:07:47.000 That, like, if you're paying off debt versus savings, look 0:07:47.040 --> 0:07:49.560 to see are you gonna make more in savings or 0:07:49.560 --> 0:07:53.400 you're gonna spend more on debt. In prioritize which one 0:07:53.760 --> 0:07:56.280 the interest rate is higher. You know, you should still 0:07:56.280 --> 0:07:58.880 try your best to do both, but prioritize the one 0:07:58.880 --> 0:08:01.040 with the interest rate that's high, because that's where you're 0:08:01.040 --> 0:08:03.200 gonna see the biggest return, or at least the biggest 0:08:03.240 --> 0:08:06.720 cut down. I think it was, Oh, who's that richest 0:08:06.720 --> 0:08:08.440 man in the world when he's the richest warm Buffett. 0:08:08.520 --> 0:08:10.960 He said, the best raise you can give yourself is 0:08:11.000 --> 0:08:14.400 to get rid of high interest rate debt because that 0:08:14.480 --> 0:08:18.160 interest rate, that fifteen twenty percent is coursing you, siss. 0:08:18.320 --> 0:08:20.040 So if you can get rid of that debt, you 0:08:20.040 --> 0:08:21.840 are going to be able to have more money a month. 0:08:21.880 --> 0:08:22.960 That's like an internal raise. 0:08:23.360 --> 0:08:27.360 So before we answer another question or two, we don't see, 0:08:27.520 --> 0:08:30.480 we're gonna throw the break, pay some bills, and we're 0:08:30.480 --> 0:08:36.600 gonna be back and black and brown and miss see 0:08:36.640 --> 0:08:41.160 you in a minute. We're back in black. Can I 0:08:41.240 --> 0:08:42.960 just get into the fact that, like, because I mean, 0:08:42.960 --> 0:08:44.760 if you don't pick yourself up, who's gonna big yourself up? 0:08:46.240 --> 0:08:48.120 Your girl skin has been glowing. And when I tell 0:08:48.120 --> 0:08:50.520 you I don't have like I have. We don't have 0:08:50.600 --> 0:08:53.079 on on. I have like this thing from Bobby Brown 0:08:53.160 --> 0:08:56.640 called something a bomb girl. 0:08:56.640 --> 0:08:57.240 I'm the worst. 0:08:58.080 --> 0:09:00.160 But anyway, so it gives you a little bit of 0:09:00.160 --> 0:09:02.600 a glow. But I don't have foundation on. Look at 0:09:02.640 --> 0:09:06.320 my skin. You know what I've been doing instead? I 0:09:06.360 --> 0:09:07.880 have been taking So I asked my doctor it was 0:09:07.920 --> 0:09:10.000 okay to take. They said, yes, I have been taking 0:09:10.120 --> 0:09:12.920 collagen and it's like one of the best ways to 0:09:12.920 --> 0:09:14.760 get collagen, which I don't do this because I don't 0:09:14.760 --> 0:09:18.719 eat meat. Is bone broth, you boil bones and like, 0:09:18.760 --> 0:09:20.920 cause there's like collagen in the bones, and collagen is 0:09:20.960 --> 0:09:23.760 what helps your skin rejuvenate. Collagen is like helps with 0:09:23.880 --> 0:09:25.880 joints and stuff like that. And so I've been seeing 0:09:25.920 --> 0:09:27.600 the girls talk about collagen and but I said, before 0:09:27.600 --> 0:09:29.680 I put them things in my body, child, let me 0:09:29.720 --> 0:09:31.719 ask my duelter. And they were like, you know, that's 0:09:31.760 --> 0:09:34.240 fine that you can take collagen, and that's great. So 0:09:35.679 --> 0:09:38.959 I ordered this like collagen called like Spoiled Child. I'm 0:09:38.920 --> 0:09:42.280 sure you to all the this is not sponsor. I 0:09:42.440 --> 0:09:45.320 ordered this collagen called Spoiled Child, and I was like, okay, 0:09:45.360 --> 0:09:47.400 the taste is not bad. I take like two tablestoons 0:09:47.440 --> 0:09:49.560 every morning. It's a little sweet, so I'm sure the 0:09:49.600 --> 0:09:51.679 sugar is like if you diabetic, you might want to say, 0:09:52.760 --> 0:09:57.280 but anyway, so you know the girly seed that you know, 0:09:57.320 --> 0:09:59.559 it's about two months before you really see. 0:09:59.440 --> 0:10:00.680 Like a different you know. 0:10:00.760 --> 0:10:02.520 So I was like, okay, So I'm on the end 0:10:02.520 --> 0:10:04.640 of my second bottle, which actually let me make myself 0:10:04.640 --> 0:10:07.280 a no because your girl need to order another bottle. 0:10:08.480 --> 0:10:09.960 So the girl. 0:10:09.960 --> 0:10:11.440 He said, you know, after two months, I'm gonna say 0:10:11.480 --> 0:10:15.880 I'm just literally making myself no order or order college. 0:10:17.520 --> 0:10:18.079 College. 0:10:18.240 --> 0:10:21.800 Yeah. And so the other day, like I was getting 0:10:21.840 --> 0:10:24.320 like my makeup retech. I was like speaking at someplace 0:10:24.360 --> 0:10:28.640 big time. The other day, I was like, you know, 0:10:28.720 --> 0:10:32.040 like getting my makeup done, like to speak on the stage. 0:10:32.040 --> 0:10:33.360 And the lady was like, you have such great skin. 0:10:33.360 --> 0:10:34.760 I mean, people tell me I have decent skin all 0:10:34.800 --> 0:10:36.640 the time. But I was like, hey, yeah, yeah, But 0:10:36.640 --> 0:10:39.720 then I really looked because when I came back from Egypt, 0:10:39.760 --> 0:10:43.600 like last month, like Egypt burnt your sister's sister to 0:10:43.640 --> 0:10:47.480 a crisp okay, I was, and I wore sunscreen even 0:10:47.520 --> 0:10:49.880 though I'm chocolate. I wore sunscreen because chocolate do melt. 0:10:50.640 --> 0:10:52.960 And but it's just like my skin was so dry 0:10:53.040 --> 0:10:55.520 after and it just was not looking its best and 0:10:55.559 --> 0:10:57.560 I was breaking out like crazy, and I don't break out. 0:10:57.640 --> 0:11:00.480 I was getting cystic acne like I was in high school. 0:11:01.000 --> 0:11:03.120 But I started taking this collagen and I bought all 0:11:03.120 --> 0:11:04.319 this stuff that I was gonna use to kind of 0:11:04.320 --> 0:11:06.160 rejuvenate my skin, and I just got lazy. I bought 0:11:06.160 --> 0:11:08.079 one hundred dollars worth of stuff and I just never 0:11:08.120 --> 0:11:10.040 got to it. So I'm using my normal skin carero 0:11:10.120 --> 0:11:11.720 tuons that I've been using for the last three years, 0:11:11.720 --> 0:11:14.320 which is because my skin gets really dry birds bees, 0:11:14.360 --> 0:11:17.080 I use an oil cleanser. Then I use like this 0:11:17.240 --> 0:11:20.200 serum from this black owned brand that I love called 0:11:20.240 --> 0:11:23.240 butter Bar. They have this melanin serum that I've always 0:11:23.240 --> 0:11:24.560 been using for the last two years. And they have 0:11:24.559 --> 0:11:26.760 an under eye roller things that I always been using. 0:11:27.920 --> 0:11:30.040 And then because I can get like little ezema patches 0:11:30.080 --> 0:11:33.600 I was using, I used this like this like Ezama lotion, 0:11:33.720 --> 0:11:35.440 but I use it on my face too, but the same. Like, 0:11:35.559 --> 0:11:38.000 I didn't do anything different. But when I was saying 0:11:38.040 --> 0:11:41.559 my skin it is the most supple. I ain't never 0:11:41.559 --> 0:11:43.720 seen my skin like this. And I was like, in 0:11:44.000 --> 0:11:46.000 literally I was putting lotion on my skin yesterday, and 0:11:46.040 --> 0:11:48.520 I was like, why did my skin feel so soft. 0:11:48.559 --> 0:11:50.440 Like sore like a baby's booty. 0:11:50.800 --> 0:11:52.160 I know, I'm going off on a tangent because I'm 0:11:52.160 --> 0:11:53.480 like whatever, girl Mandy in here, I could do what 0:11:53.520 --> 0:11:55.240 I won't, I could do what I won't, So anyway, 0:11:55.800 --> 0:11:57.440 and I was like, I'm not doing anything different. I 0:11:57.440 --> 0:11:59.120 have not used any of those products that I bought 0:11:59.120 --> 0:12:01.320 to like rejuvenate my skin post Egypt, because I've just 0:12:01.320 --> 0:12:03.440 been lazy about it. I'm using the same routine I 0:12:03.559 --> 0:12:08.560 always as I always and yeah, and I realized the 0:12:08.559 --> 0:12:11.960 only thing new is this dag on collagen. And I'm 0:12:11.960 --> 0:12:14.080 not here to say you need to use collegen, but 0:12:14.080 --> 0:12:18.560 I'm just saying your good sis. I mean, my skin 0:12:18.760 --> 0:12:23.840 is given twenty five, but my knees is given forty three. Yeah, 0:12:23.880 --> 0:12:25.920 so I don't know. I mean, I would just love 0:12:25.960 --> 0:12:27.160 to know. Has anybody try collagen? 0:12:27.760 --> 0:12:27.960 You know? 0:12:28.360 --> 0:12:29.800 My sister says she was gonna try it so we 0:12:29.840 --> 0:12:31.600 fit the sea, But I don't know. I don't know 0:12:31.600 --> 0:12:33.240 if that's why my skin looks like this. All I'm 0:12:33.280 --> 0:12:35.480 saying is I didn't. I'm not using anything new on 0:12:35.520 --> 0:12:38.959 my face, you know. The only thing different is I'm 0:12:39.000 --> 0:12:42.240 taking collagen. So, like I'm not a medical doctor, so 0:12:42.240 --> 0:12:43.720 I'm not saying that's what you need to do. But 0:12:43.760 --> 0:12:46.199 like I said, I spoke to my doctor, the one 0:12:46.200 --> 0:12:48.040 who I pay, so that's what you ought to do. 0:12:48.320 --> 0:12:50.200 But and just ask about you know, like I don't know, 0:12:50.679 --> 0:12:52.160 cause I just, you know, I want to be youthful 0:12:52.160 --> 0:12:53.880 because my mom, don't have no wrinkles, and I said, 0:12:54.000 --> 0:12:56.640 child dry skin leads to wrinkles. We don't want that, 0:12:56.920 --> 0:13:00.280 so our forty three year old skin is holding it tight. Okay, anyway, 0:13:00.280 --> 0:13:05.160 shout out to collegen. Anyway, let's see question from Shirlean. 0:13:06.000 --> 0:13:09.200 Charlene says, Hi, ladies, I have a dilemma and I 0:13:09.240 --> 0:13:11.600 hope you can help with it. I have a personal 0:13:11.679 --> 0:13:16.040 loan of five fifteen thousand, five hundred and with a 0:13:16.120 --> 0:13:19.280 whopping fifteen point twenty four percent interest rate. She said, 0:13:19.320 --> 0:13:21.480 I know you don't have to tell me, sad face, 0:13:21.559 --> 0:13:24.040 I get it. That's a lot running the numbers. I 0:13:24.080 --> 0:13:27.480 don't have the capacity to pay more than the minimum payment, 0:13:27.640 --> 0:13:29.880 which is three hundred and eighty thousand a month on 0:13:30.000 --> 0:13:33.720 the loan, and I am a new single mom working 0:13:33.760 --> 0:13:36.520 part time. However, I do put aside four hundred dollars 0:13:36.520 --> 0:13:39.040 a month into my son's saves account, and that currently 0:13:39.040 --> 0:13:43.360 has a balance of fifteen thousand dollars earning approximately four percent. Oh, 0:13:43.400 --> 0:13:46.000 we just answered the question like this. I have recently 0:13:46.040 --> 0:13:48.120 decided that I want to put at least ten thousand 0:13:48.440 --> 0:13:52.520 of the savings into an investment bond for my son 0:13:52.600 --> 0:13:54.400 and continue to fund it each month, as I have 0:13:54.520 --> 0:13:56.719 been doing. But part of me thinks I should take 0:13:56.760 --> 0:14:01.199 fifteen thousand to pay the loan that rebuild my son's 0:14:01.200 --> 0:14:03.200 savings by paying eight hundred dollars a month into it. 0:14:03.559 --> 0:14:04.400 What say you? 0:14:04.480 --> 0:14:06.440 I hate the idea of taking my child's money, but 0:14:06.480 --> 0:14:09.080 I also hate the debt that won't move. For context, 0:14:09.200 --> 0:14:12.480 I have two thousand in emergency funds and hope to 0:14:12.480 --> 0:14:14.680 buy a home in the next year or two. Thanks 0:14:14.720 --> 0:14:23.160 so much, Shirlene, Hirlene, Chirlene, Shirley, Shirley, Shirley, I beg 0:14:23.240 --> 0:14:25.840 you please, you don't something take my man. That's Dolly 0:14:25.880 --> 0:14:30.640 Parton and then it was like remade by Malea Cyrus. Okay, Shirlen, 0:14:32.360 --> 0:14:34.600 this is hard, right because you're like, I want to 0:14:34.640 --> 0:14:37.880 set aside money for the baby, which congratulatess mama. 0:14:37.960 --> 0:14:41.680 I love that. But you have this debt, which you're 0:14:41.720 --> 0:14:42.400 absolutely right. 0:14:42.440 --> 0:14:46.200 If you pay the minimum on this fifteen thousand dollars debt, 0:14:46.480 --> 0:14:47.960 you will be paying that debt. 0:14:49.760 --> 0:14:51.400 It's go get a like a. 0:14:51.600 --> 0:14:53.280 If I had the time, I would like plug into 0:14:53.280 --> 0:14:55.160 a calculate you're gonna pay not be paying that debt 0:14:55.240 --> 0:14:56.240 for a long time. 0:14:56.280 --> 0:14:58.480 And you're likely paid like double what you actually own. 0:14:58.760 --> 0:15:01.720 That fifteen is gonna cost you, Like, you know, that's 0:15:01.720 --> 0:15:04.640 the problem with like when you pay the minimum on debt, 0:15:05.560 --> 0:15:07.480 it's that like so much of that money goes to fees, 0:15:07.720 --> 0:15:10.800 which is really disheartening. You know. So I can understand 0:15:11.120 --> 0:15:14.040 you didn't say how old your son was, but you 0:15:14.080 --> 0:15:17.200 said I'm a new single mom. So I don't know 0:15:17.240 --> 0:15:22.920 if you're newly single or newly a mom. But the 0:15:23.000 --> 0:15:26.320 thing is, if mama ain't good, nobody good. And so 0:15:26.480 --> 0:15:28.320 I know you're like, oh, I hate taking away from 0:15:28.320 --> 0:15:29.800 my son, but you know it's really taking away from 0:15:29.800 --> 0:15:32.360 your son, this fifteen thousand dollars money you owe at 0:15:32.400 --> 0:15:36.960 fifteen percent. If it was me, I honestly, especially if 0:15:37.000 --> 0:15:39.120 my son was a baby, like it'd be one thing. 0:15:39.120 --> 0:15:41.280 If you said my son graduates high school next year, 0:15:41.320 --> 0:15:43.600 then I might be like, ah, you need that money 0:15:43.600 --> 0:15:47.160 for college right away. But if your son is really young, 0:15:47.640 --> 0:15:49.360 you know, if he was super young, you know, like 0:15:49.480 --> 0:15:50.920 I said, you're a new mom, you know your son 0:15:51.000 --> 0:15:53.040 is like two three. I would take that full amount 0:15:53.080 --> 0:15:55.080 and pay off that debt and say we're not going 0:15:55.120 --> 0:15:57.080 back into we're not going back into debt. 0:15:57.080 --> 0:15:57.320 No more. 0:15:57.360 --> 0:15:58.880 Now you don't You didn't tell me your other debt. 0:15:59.160 --> 0:16:01.920 Do you have other credit card debt and things like that. 0:16:02.160 --> 0:16:04.880 I don't know that here, because then I might reconsider. 0:16:05.200 --> 0:16:06.920 But I'm just going to pretend like this is the 0:16:06.920 --> 0:16:08.840 only debt that you owe besides like maybe your car 0:16:08.920 --> 0:16:11.000 note or something like that. But this is the most 0:16:11.040 --> 0:16:13.520 expensive debt in the you don't have any credit card debt. 0:16:13.520 --> 0:16:17.240 I'm just going to pretend I probably would put all, 0:16:17.480 --> 0:16:20.160 if not most, to pay off this debt because at 0:16:20.160 --> 0:16:22.320 that fifteen percent, it's going to take a long time 0:16:22.360 --> 0:16:24.280 to pay that off. And if your son is only 0:16:24.360 --> 0:16:26.360 earning four percent, and let's just say you put your money, 0:16:26.440 --> 0:16:29.560 his money into a bond, right, you put it into investment, 0:16:29.600 --> 0:16:32.640 you put into the market. The market is still on 0:16:32.760 --> 0:16:36.040 average going to yield about ten percent a year, So 0:16:36.360 --> 0:16:39.600 ten percent is still less than fifteen that you know, 0:16:40.040 --> 0:16:42.240 fifteen in the quarter that the debt is costing you. 0:16:42.360 --> 0:16:43.200 Does that make sense? 0:16:43.360 --> 0:16:45.280 So even if you were to get a great return 0:16:45.320 --> 0:16:48.680 in the market at ten percent, you know, you're still 0:16:48.760 --> 0:16:50.440 it's still not going to be what the debt is 0:16:50.480 --> 0:16:54.240 costing you. So I probably would all things considered used 0:16:54.280 --> 0:16:56.920 to pay down that debt and stay out of debt, 0:16:57.520 --> 0:17:00.480 you know, as much as possible, because what you don't 0:17:00.480 --> 0:17:01.880 want to do is you don't want to make it 0:17:01.920 --> 0:17:05.760 a habit of like saving and then taking, saving and taking. 0:17:05.840 --> 0:17:09.639 So then what I would do moving forward is I 0:17:09.680 --> 0:17:12.000 would be putting my son's money into a vehicle that 0:17:12.040 --> 0:17:14.199 I cannot easily touch, to your point, like setting and 0:17:14.240 --> 0:17:17.639 putting up you know, investing it so it's not easily 0:17:17.680 --> 0:17:20.280 accessible to you. That's probably all I do. I would be, 0:17:20.320 --> 0:17:22.399 like I might. I'm not saying this is what you 0:17:22.400 --> 0:17:24.320 should do. If I would do, I'd probably bite the bullet, 0:17:24.880 --> 0:17:27.760 pay off this debt, commit to not getting back into 0:17:27.800 --> 0:17:30.439 debt like that, or if I do, you know, borrow 0:17:30.480 --> 0:17:33.320 money or whatever, you know, navigating for the best interest 0:17:33.320 --> 0:17:35.880 possible so it's not costing me so much. And then 0:17:35.960 --> 0:17:37.720 any new money that I'm going to be doubling down 0:17:37.760 --> 0:17:39.400 my child, I'm going to put it into an account 0:17:39.600 --> 0:17:41.360 that I don't have as much free access to because 0:17:41.400 --> 0:17:43.399 we don't want to make a habit into taking from 0:17:43.400 --> 0:17:46.320 the son's account, from your son's account, and also too, 0:17:47.000 --> 0:17:50.400 instead of doubling up to rebuild my son's savings into 0:17:50.440 --> 0:17:52.600 eight hundred buck dollars a month. I would put four 0:17:52.680 --> 0:17:55.440 hundred dollars to my son and four hundred dollars into 0:17:55.440 --> 0:17:57.760 my emergency fund, because your emergency fund is not enough, 0:17:58.520 --> 0:18:00.960 you know, like you want ideally they have three months 0:18:01.000 --> 0:18:04.320 worth of expenses in the emergency fund, you know, because 0:18:04.480 --> 0:18:06.399 here's the reason why if something happens, what would you 0:18:06.440 --> 0:18:08.760 and your son do? You know, like I would make 0:18:08.800 --> 0:18:12.880 that My priority is to bulk up that emergency fund. 0:18:12.920 --> 0:18:15.879 So again, I would probably pay off all of, not 0:18:16.000 --> 0:18:18.800 most of that fifteen thousand dollars because it's too expensive. 0:18:19.440 --> 0:18:22.399 I would continue to fund my son's account with the 0:18:22.400 --> 0:18:24.720 four hundred and now put the other four hundred into 0:18:24.720 --> 0:18:27.080 my emergency fund, if not even more into the emergency fund, 0:18:27.119 --> 0:18:29.280 like two hundred to my son for you know, six 0:18:29.400 --> 0:18:33.440 hundred to the emergency fund only because if emergency hits, 0:18:33.480 --> 0:18:35.760 who won't look after you and a baby that money? 0:18:36.040 --> 0:18:37.600 And so that's more important right now. 0:18:37.960 --> 0:18:40.200 And then you know, like try your best to keep 0:18:40.240 --> 0:18:42.080 out of debt and continue to earn and look for 0:18:42.119 --> 0:18:43.320 ways to earn additional income. 0:18:43.960 --> 0:18:45.440 I hope that's helpful, Shirlene. 0:18:46.080 --> 0:18:47.800 Yeah, sometimes you have to make those choices that are 0:18:47.800 --> 0:18:49.960 not the funnest or the cutest, but the choice that 0:18:49.960 --> 0:18:51.680 we have to make. I have certainly been in that place, 0:18:51.720 --> 0:18:56.400 so certainly, no, no, no shame. You do the best 0:18:56.440 --> 0:18:58.880