1 00:00:06,080 --> 00:00:09,840 Speaker 1: It's time for the b a qa a to b 2 00:00:09,960 --> 00:00:13,480 Speaker 1: a q a with Tiffany, to b a qa usually 3 00:00:13,480 --> 00:00:18,240 Speaker 1: with Manday, but to be a qa just made today. 4 00:00:19,239 --> 00:00:23,000 Speaker 1: So I'm here by myself because Maddy had mom things 5 00:00:23,040 --> 00:00:23,440 Speaker 1: to get to. 6 00:00:24,480 --> 00:00:25,279 Speaker 2: But that's what right I thought. 7 00:00:25,360 --> 00:00:27,760 Speaker 1: She will be back in black and brown as ever, 8 00:00:28,320 --> 00:00:32,479 Speaker 1: but it is Made Whole week. My new book Made 9 00:00:32,479 --> 00:00:36,839 Speaker 1: Whole came out earlier this week, and to celebrate, I 10 00:00:36,880 --> 00:00:40,040 Speaker 1: am going to be answering questions that you can also 11 00:00:40,080 --> 00:00:43,040 Speaker 1: find the answers to in part in Maidehole, my new 12 00:00:43,040 --> 00:00:45,040 Speaker 1: book a little bit about Maidhole. 13 00:00:45,680 --> 00:00:47,199 Speaker 2: It is going to teach you in. 14 00:00:47,280 --> 00:00:52,120 Speaker 1: Ten steps how to create financial wholeness for yourself. That is, 15 00:00:52,360 --> 00:00:55,680 Speaker 1: financial holeness is the financial foundation for the rest of 16 00:00:55,720 --> 00:00:59,680 Speaker 1: your life. If you achieve these ten steps, budgeting, savings, 17 00:00:59,800 --> 00:01:06,920 Speaker 1: that credit, income, investing, insurance, your financial team, net worth, 18 00:01:06,959 --> 00:01:11,440 Speaker 1: and estate planning. If you learn to manage and maintain 19 00:01:11,600 --> 00:01:16,919 Speaker 1: those ten steps, things can happen externally to you financially, 20 00:01:16,959 --> 00:01:20,399 Speaker 1: but you'll be okay, Meaning what session can happen, you'll 21 00:01:20,400 --> 00:01:24,000 Speaker 1: be okay. Job loss will happen, you could be okay. 22 00:01:24,280 --> 00:01:27,560 Speaker 1: Inflation happens, you could be okay. If you master those 23 00:01:27,760 --> 00:01:30,880 Speaker 1: master and maintain those ten steps, and inside of Made Whole, 24 00:01:31,040 --> 00:01:33,119 Speaker 1: I walk you through, step by step by step how 25 00:01:33,120 --> 00:01:35,560 Speaker 1: to do so. It is the workbook version the companion 26 00:01:35,600 --> 00:01:38,400 Speaker 1: book to my New York Times bestseller Get Good with Money. 27 00:01:38,800 --> 00:01:40,800 Speaker 1: It is more concise. It allows you to do the 28 00:01:40,840 --> 00:01:42,720 Speaker 1: work with each and every step right away, so you 29 00:01:42,760 --> 00:01:46,520 Speaker 1: don't forget the work itself. There's in real life stories 30 00:01:46,560 --> 00:01:49,800 Speaker 1: of people who completed these steps via its sister book 31 00:01:49,840 --> 00:01:51,760 Speaker 1: and Get Good of Money, so you can be encouraged. 32 00:01:52,000 --> 00:01:54,520 Speaker 1: And I also have quick steps where if you don't 33 00:01:54,560 --> 00:01:56,320 Speaker 1: want to do the whole step because you feel a 34 00:01:56,360 --> 00:01:58,800 Speaker 1: little overwhelmed, if you do this one thing, it will 35 00:01:58,800 --> 00:02:02,919 Speaker 1: make a huge difference in your financial life as related 36 00:02:02,960 --> 00:02:05,320 Speaker 1: to that step. So that's how Madehole is a little different. 37 00:02:05,320 --> 00:02:07,520 Speaker 1: So let's get into some questions. But remember this then 38 00:02:07,720 --> 00:02:11,600 Speaker 1: I'm answering questions. But I'm not your doctor, your lawyer, 39 00:02:12,040 --> 00:02:15,480 Speaker 1: your mama, your father. No, I'm just a smart brown 40 00:02:15,520 --> 00:02:17,440 Speaker 1: girl who have some opinions that you're going to take 41 00:02:17,600 --> 00:02:18,799 Speaker 1: with the smallest grain of salt. 42 00:02:18,840 --> 00:02:20,440 Speaker 2: Then you are going to lean into somebody that you 43 00:02:20,480 --> 00:02:23,520 Speaker 2: pay for advice. Okay, okay, let's start all. 44 00:02:23,480 --> 00:02:25,080 Speaker 1: Right, So we have some. I think I might do 45 00:02:25,240 --> 00:02:29,640 Speaker 1: three in you know, because it's made whole, made whole week. 46 00:02:29,960 --> 00:02:30,280 Speaker 2: Okay. 47 00:02:30,360 --> 00:02:34,280 Speaker 1: Oh sidebar also too, made wholes available wherever books are sold. 48 00:02:34,560 --> 00:02:35,639 Speaker 2: But also you can go to. 49 00:02:35,840 --> 00:02:40,799 Speaker 1: Mad Whole Workbook dot com, Maid Whole Workbook dot com and. 50 00:02:40,760 --> 00:02:41,600 Speaker 2: Get yourself a copy. 51 00:02:41,639 --> 00:02:48,320 Speaker 1: Okay, all right, So question from Terry from ig Terry says, 52 00:02:48,480 --> 00:02:50,880 Speaker 1: good day, ladies, or anyone on the team who might 53 00:02:50,919 --> 00:02:52,520 Speaker 1: be not identifying as a lady. 54 00:02:52,600 --> 00:02:53,359 Speaker 2: Okay, I love that. 55 00:02:53,639 --> 00:02:55,880 Speaker 1: I have a very important question that I'm sure parents 56 00:02:55,919 --> 00:02:58,880 Speaker 1: are listening. Would love to know. I'm expecting my first 57 00:02:59,000 --> 00:03:00,600 Speaker 1: child in three weeks. Can congratulations? 58 00:03:00,720 --> 00:03:01,000 Speaker 2: Terry? 59 00:03:02,200 --> 00:03:04,320 Speaker 1: Oh well you wrote this a little while ago, so 60 00:03:04,360 --> 00:03:08,520 Speaker 1: the baby's here already. Congratulations. And after looking at stocks 61 00:03:08,520 --> 00:03:10,560 Speaker 1: like Amazon and others, I would love to know what 62 00:03:10,600 --> 00:03:14,040 Speaker 1: are things I can do to get her invested into 63 00:03:14,160 --> 00:03:17,600 Speaker 1: this economy. So she's having a girl, she will absolutely 64 00:03:17,639 --> 00:03:19,880 Speaker 1: be a beneficiary on my assets. 65 00:03:20,000 --> 00:03:23,160 Speaker 2: Awesome. But what are some things I know to open? 66 00:03:23,800 --> 00:03:24,160 Speaker 2: She said? 67 00:03:24,160 --> 00:03:26,280 Speaker 1: What are some other things she said, I know to 68 00:03:26,320 --> 00:03:30,680 Speaker 1: open a wrath? And when she starts to have earned income, 69 00:03:31,080 --> 00:03:33,079 Speaker 1: and maybe you could speak to that as well. I'm 70 00:03:33,120 --> 00:03:36,400 Speaker 1: here for any advice please and thank you love the show. Okay, first, 71 00:03:36,440 --> 00:03:38,680 Speaker 1: congratulations because I know baby girls here because you wrote 72 00:03:38,720 --> 00:03:42,920 Speaker 1: this to us a little while ago. So some things 73 00:03:42,920 --> 00:03:46,480 Speaker 1: that you want to consider is one, what does your 74 00:03:46,520 --> 00:03:51,680 Speaker 1: life insurance policy look like, Terry like, have you updated 75 00:03:51,680 --> 00:03:54,080 Speaker 1: your life insurance policy? Your partner do they have a 76 00:03:54,120 --> 00:03:57,720 Speaker 1: life insurance policy? How is baby girl provided for in 77 00:03:57,760 --> 00:03:59,000 Speaker 1: the life insurance policy? 78 00:03:59,080 --> 00:04:01,200 Speaker 2: So that's one. Is it enough? Do you feel? 79 00:04:01,440 --> 00:04:03,600 Speaker 1: Here's a rule of thumb directly from Made Whole. So 80 00:04:04,360 --> 00:04:06,240 Speaker 1: in the I will tell you right now and made 81 00:04:06,280 --> 00:04:07,880 Speaker 1: hold of the book, I told you. 82 00:04:07,880 --> 00:04:08,800 Speaker 2: This is the main whole episode. 83 00:04:08,880 --> 00:04:16,040 Speaker 1: Okay, the chapter eight it's called Get Good with Insurance, right, 84 00:04:16,320 --> 00:04:19,599 Speaker 1: So in it I talk about how much life insurance 85 00:04:19,640 --> 00:04:22,800 Speaker 1: you have should have basic kind of where you are 86 00:04:22,839 --> 00:04:25,200 Speaker 1: in life. If you have children, you want to try 87 00:04:25,240 --> 00:04:29,320 Speaker 1: to provide for a minimum ten years worth of you 88 00:04:29,480 --> 00:04:34,240 Speaker 1: financially supporting them. So however, you if you the rule 89 00:04:34,279 --> 00:04:36,440 Speaker 1: of thumb is, let's just say you make one hundred 90 00:04:36,480 --> 00:04:39,560 Speaker 1: thousand dollars a year. Ten years times one hundred thousand 91 00:04:39,600 --> 00:04:41,720 Speaker 1: dollars is a million dollars. So you want to try 92 00:04:41,720 --> 00:04:45,000 Speaker 1: to get a policy, ideally a term policy for a 93 00:04:45,080 --> 00:04:47,760 Speaker 1: million dollars or more so that way, if you're not 94 00:04:47,880 --> 00:04:50,919 Speaker 1: here for ten years, the finance, the finances that you 95 00:04:50,960 --> 00:04:53,400 Speaker 1: brought into your daughter's life will still be able to continue. 96 00:04:53,440 --> 00:04:55,240 Speaker 2: Does that make sense, you know? 97 00:04:56,360 --> 00:04:59,000 Speaker 1: So that's one, making sure that your life insurance policies 98 00:04:59,240 --> 00:05:04,680 Speaker 1: are all the way together to make sure she's looked after. Two, 99 00:05:04,760 --> 00:05:06,360 Speaker 1: what does your will look like if you have a 100 00:05:06,440 --> 00:05:09,200 Speaker 1: child you needed a will like yesterday? You know, like 101 00:05:09,240 --> 00:05:11,919 Speaker 1: if something happens to you, something happens to your partner, 102 00:05:12,400 --> 00:05:15,560 Speaker 1: you know, where would that money go or who would 103 00:05:15,560 --> 00:05:16,360 Speaker 1: be looking after her? 104 00:05:16,400 --> 00:05:17,040 Speaker 2: In what way? 105 00:05:17,440 --> 00:05:19,479 Speaker 1: What do you want to set aside for her? So 106 00:05:19,560 --> 00:05:23,120 Speaker 1: consider those things. Also, you also want to consider that 107 00:05:25,680 --> 00:05:28,760 Speaker 1: the issue with just a life insurance policy directly to 108 00:05:28,839 --> 00:05:31,560 Speaker 1: your daughter, if something were to happen to you, the 109 00:05:31,600 --> 00:05:34,159 Speaker 1: state where you live might hold that money until she 110 00:05:34,200 --> 00:05:36,960 Speaker 1: turns eighteen. So one, what that means is that money 111 00:05:37,000 --> 00:05:39,920 Speaker 1: won't be as helpful to her because she's still really young. 112 00:05:41,520 --> 00:05:43,880 Speaker 1: And two it might she might be getting too much 113 00:05:43,960 --> 00:05:45,520 Speaker 1: money when she turns eighteen. 114 00:05:45,600 --> 00:05:46,760 Speaker 2: So consider. 115 00:05:47,839 --> 00:05:50,359 Speaker 1: Potentially, I don't know, like what your financial situation looks like, 116 00:05:50,400 --> 00:05:53,359 Speaker 1: a trust as well, because then you can make the 117 00:05:53,520 --> 00:05:56,840 Speaker 1: trust the beneficiary to that life insurance policy and then 118 00:05:56,839 --> 00:06:00,680 Speaker 1: it can be pieced out to her as you as 119 00:06:00,720 --> 00:06:03,880 Speaker 1: you consider, as as you deem necessary. So some to 120 00:06:03,920 --> 00:06:06,800 Speaker 1: look after her while she's still young, maybe some for 121 00:06:07,080 --> 00:06:08,920 Speaker 1: like you know, when she is ready to go to 122 00:06:08,960 --> 00:06:10,719 Speaker 1: college or otherwise, and some beyond. 123 00:06:10,880 --> 00:06:12,400 Speaker 2: So consider that as well, Terry. 124 00:06:12,960 --> 00:06:15,520 Speaker 1: And another thing, I know you talked about considering maybe 125 00:06:15,560 --> 00:06:18,880 Speaker 1: getting a raw iray for her and so IRA as 126 00:06:18,960 --> 00:06:23,480 Speaker 1: an individual retirement account. And the only way to have 127 00:06:23,520 --> 00:06:25,880 Speaker 1: a retirement account is that you have to be earning money. 128 00:06:26,080 --> 00:06:28,039 Speaker 2: The great thing is is that maybies. 129 00:06:27,720 --> 00:06:30,680 Speaker 1: Can earn money. So let's just say, you know, I 130 00:06:30,720 --> 00:06:33,479 Speaker 1: don't know, like your child was a child model, like 131 00:06:33,560 --> 00:06:35,479 Speaker 1: she could have a raw IRA because she'd be earning 132 00:06:35,480 --> 00:06:37,279 Speaker 1: income as like a baby model. 133 00:06:37,320 --> 00:06:37,520 Speaker 2: You know. 134 00:06:38,120 --> 00:06:40,560 Speaker 1: So my step daughter works for me from time to time. 135 00:06:40,839 --> 00:06:42,840 Speaker 1: I opened up an IRA for her, so I pay 136 00:06:42,920 --> 00:06:45,240 Speaker 1: her and I pay her enough to make sure she 137 00:06:45,279 --> 00:06:48,359 Speaker 1: can fully fund her wrath IRA every year, you know, 138 00:06:48,440 --> 00:06:50,800 Speaker 1: under my guidance and the guidance of my financial advisor 139 00:06:50,839 --> 00:06:55,080 Speaker 1: on Julie. You know, so consider like you know, you 140 00:06:55,080 --> 00:06:56,760 Speaker 1: don't have to wait till your daughter's grown for her 141 00:06:56,800 --> 00:06:59,479 Speaker 1: to have that wrath IRA. And so earned income is 142 00:06:59,560 --> 00:07:01,440 Speaker 1: just that they are working. You obviously have to prove 143 00:07:01,760 --> 00:07:03,440 Speaker 1: that it makes sense. I have my own business, so 144 00:07:03,440 --> 00:07:07,200 Speaker 1: it's a little easier, but that's one of the ways. 145 00:07:07,279 --> 00:07:10,920 Speaker 1: And lastly, consider opening. I have this for both Alyssa, 146 00:07:11,000 --> 00:07:13,280 Speaker 1: my bonus daughter, but also my niece and my nephew. 147 00:07:13,720 --> 00:07:18,400 Speaker 1: I have something called a not lastly, but I have 148 00:07:18,480 --> 00:07:21,440 Speaker 1: something that I prefer right now over a five twenty 149 00:07:21,520 --> 00:07:24,560 Speaker 1: nine plan, although five twenty nine plans can be very helpful. 150 00:07:24,760 --> 00:07:28,120 Speaker 1: So just for clarity, a five to twenty nine plan is, 151 00:07:28,240 --> 00:07:32,040 Speaker 1: let me get the right wording for you. Five twenty 152 00:07:32,160 --> 00:07:35,080 Speaker 1: nine plan. Okay, So a five twenty nine plan is 153 00:07:35,080 --> 00:07:39,360 Speaker 1: a college savings plan and it's states sponsored. It enables 154 00:07:39,360 --> 00:07:42,920 Speaker 1: you to save money for beneficiary and pay for educational expenses. 155 00:07:42,960 --> 00:07:45,040 Speaker 1: So the good thing is not just college expenses. You 156 00:07:45,040 --> 00:07:48,320 Speaker 1: can set aside money and pay for educational expenses too. 157 00:07:48,440 --> 00:07:51,720 Speaker 1: You can withdraw the funds tax free to cover nearly 158 00:07:51,800 --> 00:07:52,680 Speaker 1: any type. 159 00:07:52,400 --> 00:07:53,400 Speaker 2: Of college expense. 160 00:07:53,600 --> 00:07:56,040 Speaker 1: Right. So what that means is is that you put 161 00:07:56,200 --> 00:07:58,560 Speaker 1: say money right now into a five twenty nine plan. 162 00:07:58,720 --> 00:08:01,440 Speaker 1: Not just you, but other people you know can contribute 163 00:08:01,440 --> 00:08:03,960 Speaker 1: to this five twenty nine plan. Grandma and grandpa, aunties uncles, 164 00:08:04,240 --> 00:08:08,000 Speaker 1: and then when it's invested and when it grows, ideally 165 00:08:08,320 --> 00:08:10,320 Speaker 1: you could pull the money you put in and the 166 00:08:10,400 --> 00:08:14,920 Speaker 1: investment that it's grown to out for expenses. A lot 167 00:08:14,920 --> 00:08:18,360 Speaker 1: of laws have changed where it's not just for college 168 00:08:18,360 --> 00:08:22,120 Speaker 1: expenses that they're even letting you use five twenty nine 169 00:08:22,160 --> 00:08:27,280 Speaker 1: plan money for other educational expenses, you know. So some 170 00:08:27,320 --> 00:08:31,240 Speaker 1: of the advantages are you have some federal income tax 171 00:08:31,280 --> 00:08:37,000 Speaker 1: benefits and some state benefits. It's low maintenance, high contribution limits, 172 00:08:37,000 --> 00:08:40,840 Speaker 1: semi flexible. And then some of the cons are the 173 00:08:40,880 --> 00:08:45,679 Speaker 1: funds must be used for education, there are limitations on 174 00:08:45,760 --> 00:08:49,880 Speaker 1: tax benefits. There's no self directed investment, so there's not 175 00:08:49,920 --> 00:08:52,720 Speaker 1: investments that you can kind of choose yourself. There are fees, 176 00:08:54,280 --> 00:08:58,920 Speaker 1: and there are some ownership rules. Although there are favorable 177 00:08:58,920 --> 00:09:00,839 Speaker 1: financial aid treatments, meaning like if you have a lot 178 00:09:00,840 --> 00:09:02,560 Speaker 1: of money in your five twenty nine plan, it doesn't 179 00:09:02,600 --> 00:09:07,199 Speaker 1: mean that your daughter won't be eligible for financial aid treatment. Okay, 180 00:09:08,280 --> 00:09:10,600 Speaker 1: But the good thing, the tax benefit that I really 181 00:09:10,600 --> 00:09:12,520 Speaker 1: do like about the five twenty nine plan is that 182 00:09:12,720 --> 00:09:16,320 Speaker 1: you can use it for college tuition fees, books, supplies, 183 00:09:16,600 --> 00:09:19,400 Speaker 1: some room and board costs, and up to ten thousand 184 00:09:19,440 --> 00:09:23,960 Speaker 1: dollars in K through twelve tuition per year, and you know, 185 00:09:24,080 --> 00:09:27,280 Speaker 1: and up to ten thousand dollars in student loan repayment 186 00:09:28,440 --> 00:09:30,079 Speaker 1: per beneficiary and per sibling. 187 00:09:30,160 --> 00:09:31,280 Speaker 2: So that's pretty good. 188 00:09:32,320 --> 00:09:35,440 Speaker 1: But the reason why I didn't open a five twenty 189 00:09:35,520 --> 00:09:39,120 Speaker 1: nine plan for my nieces and nephews and my stepdaughter 190 00:09:39,600 --> 00:09:41,520 Speaker 1: is because I felt like it was a little restrictive 191 00:09:41,520 --> 00:09:44,920 Speaker 1: for me. So instead I have a custodial account for them. 192 00:09:45,120 --> 00:09:47,560 Speaker 1: And so basically this is just an investment account that 193 00:09:47,720 --> 00:09:50,600 Speaker 1: I am the custodian of and I will sign over 194 00:09:50,640 --> 00:09:53,560 Speaker 1: to them or they are the beneficiaries of it when 195 00:09:54,800 --> 00:09:57,000 Speaker 1: if I'm not here, and so basically it's just a 196 00:09:57,000 --> 00:09:59,800 Speaker 1: brokerage account where I'm investing. I put money every single 197 00:09:59,880 --> 00:10:02,400 Speaker 1: year year across the board to all four of them, 198 00:10:02,920 --> 00:10:05,800 Speaker 1: and as the money grows, you know, it's for them, 199 00:10:05,880 --> 00:10:09,800 Speaker 1: and then I can decide when they'll get that money 200 00:10:09,800 --> 00:10:12,400 Speaker 1: while I'm here and when I am no longer here, 201 00:10:12,640 --> 00:10:18,040 Speaker 1: I haven't because though the beneficiaries of that custodial account 202 00:10:18,120 --> 00:10:21,680 Speaker 1: actually goes to the trust, and the trust says the 203 00:10:21,760 --> 00:10:24,520 Speaker 1: money will be divvied out at age eighteen if they're 204 00:10:24,520 --> 00:10:27,240 Speaker 1: going to college twenty one if they're not, and then 205 00:10:27,320 --> 00:10:30,800 Speaker 1: age twenty five and then finally aged thirty. So that's 206 00:10:30,840 --> 00:10:34,000 Speaker 1: how the custodia account money pays out to my nieces 207 00:10:34,000 --> 00:10:36,600 Speaker 1: and nephew and Alyssa if I'm not here. If I 208 00:10:36,640 --> 00:10:38,800 Speaker 1: am here, then I will sign it over to them 209 00:10:38,800 --> 00:10:41,080 Speaker 1: as as I find they're responsible enough to use that 210 00:10:41,080 --> 00:10:44,360 Speaker 1: money in a responsible way. So Custodial Account in five 211 00:10:44,400 --> 00:10:47,120 Speaker 1: twenty nine plans the last piece of advice. So hopefully 212 00:10:47,160 --> 00:10:49,560 Speaker 1: that was helpful to you. Tarry another parents, I'm gonna 213 00:10:49,600 --> 00:10:50,880 Speaker 1: take you know what. I'm not going to take a 214 00:10:50,920 --> 00:10:53,000 Speaker 1: quick break just yet because I want to answer this quick, quick, 215 00:10:53,080 --> 00:11:00,199 Speaker 1: funny question from Ohio Raised and Cali Living. Going to 216 00:11:00,240 --> 00:11:03,600 Speaker 1: take a quick break, okay, Ohio Raise in Kelli Living, 217 00:11:03,679 --> 00:11:07,280 Speaker 1: says Tiffany Mandy. My company offers a five hundred dollars 218 00:11:07,320 --> 00:11:11,360 Speaker 1: reimbursement on things I spend for my wellness. I'm talking 219 00:11:11,440 --> 00:11:14,360 Speaker 1: from facials to student loan payments. Your girl was in 220 00:11:14,520 --> 00:11:17,480 Speaker 1: it was all here for it until I read the 221 00:11:17,600 --> 00:11:21,040 Speaker 1: reimbursement is taxable income. It feels like a payday loan. 222 00:11:21,120 --> 00:11:24,640 Speaker 1: Am I trip in financial godmothers love that all ears 223 00:11:24,720 --> 00:11:26,120 Speaker 1: Ohio Rais and Kelli living. 224 00:11:26,440 --> 00:11:28,640 Speaker 2: So this is funny. Here's the thing. There's no such 225 00:11:28,679 --> 00:11:29,400 Speaker 2: thing as a free lunch. 226 00:11:29,440 --> 00:11:32,360 Speaker 1: I know it sounds like, wait, what, There's no such 227 00:11:32,360 --> 00:11:35,160 Speaker 1: thing as a free lunch because if they reimburse that 228 00:11:35,240 --> 00:11:38,360 Speaker 1: money to you, what the government says, federal and. 229 00:11:38,320 --> 00:11:40,599 Speaker 2: State is that you made money. It says that you 230 00:11:40,679 --> 00:11:41,240 Speaker 2: made money. 231 00:11:41,320 --> 00:11:45,160 Speaker 1: So a reimbursement is still considered money being made. 232 00:11:45,440 --> 00:11:48,120 Speaker 2: And one thing that this United States. 233 00:11:47,760 --> 00:11:50,680 Speaker 1: Of America does not want to do is see you 234 00:11:50,760 --> 00:11:52,680 Speaker 1: make money and they don't make no money off the 235 00:11:52,679 --> 00:11:53,480 Speaker 1: money you made. 236 00:11:53,880 --> 00:11:56,240 Speaker 2: So it's not that your company is doing something wrong. 237 00:11:57,120 --> 00:11:57,400 Speaker 2: Is that. 238 00:11:57,640 --> 00:12:01,000 Speaker 1: Yes, they're offering you this five hundred dollars reimbursursement, and 239 00:12:01,080 --> 00:12:04,440 Speaker 1: if you use that reimbursement, it's made money. So for example, 240 00:12:04,840 --> 00:12:08,720 Speaker 1: it's similar to if I get something forgiven. So this 241 00:12:08,840 --> 00:12:10,520 Speaker 1: is what they were fighting about in the federal government 242 00:12:10,559 --> 00:12:14,959 Speaker 1: about Biden forgiving the student loans. So some people wanted 243 00:12:14,960 --> 00:12:18,319 Speaker 1: that student loan forgiveness to be taxed because they're like, 244 00:12:18,360 --> 00:12:22,600 Speaker 1: you made money, like in outside of student loans, if 245 00:12:22,640 --> 00:12:25,920 Speaker 1: you get anything forgiven over six hundred dollars, Like there 246 00:12:25,920 --> 00:12:29,000 Speaker 1: are people who had their they lost their home to 247 00:12:29,040 --> 00:12:33,240 Speaker 1: foreclosure and they still owed on it, and they got 248 00:12:33,240 --> 00:12:36,240 Speaker 1: that forgiven, especially during the recession, right, and they had 249 00:12:36,280 --> 00:12:39,440 Speaker 1: to pay taxes on the money that was forgiven, you know, 250 00:12:39,480 --> 00:12:42,080 Speaker 1: because they lost it to foreclosure and as a result, 251 00:12:42,520 --> 00:12:44,800 Speaker 1: you know, it's like, wait, I lost my house, I 252 00:12:44,840 --> 00:12:47,600 Speaker 1: gave it up, I still owed one hundred thousand dollars 253 00:12:47,640 --> 00:12:48,920 Speaker 1: on it, So you mean to same, I got to 254 00:12:48,920 --> 00:12:50,840 Speaker 1: pay tax on one hundred thousand dollars And the government 255 00:12:50,880 --> 00:12:54,120 Speaker 1: is like yes, because that forgiven money is still earned money. 256 00:12:54,440 --> 00:12:57,679 Speaker 1: So reimburse money is considered earned money either way. So 257 00:12:57,760 --> 00:13:01,000 Speaker 1: it's not your job that's doing that, it's the it's 258 00:13:01,120 --> 00:13:02,319 Speaker 1: USA who. 259 00:13:02,200 --> 00:13:02,679 Speaker 2: Is doing that. 260 00:13:02,800 --> 00:13:05,280 Speaker 1: So hope that makes sense, Ohio, Rais and Kelli living 261 00:13:05,559 --> 00:13:07,640 Speaker 1: that your job is trying to do something nice by 262 00:13:07,960 --> 00:13:11,040 Speaker 1: giving you that money. But here's the thing, like paying 263 00:13:11,120 --> 00:13:14,720 Speaker 1: taxes on it doesn't mean that you're gonna pay the 264 00:13:14,800 --> 00:13:17,000 Speaker 1: full five hundred dollars in tax. So let's just say 265 00:13:17,000 --> 00:13:19,719 Speaker 1: your tax rate is twenty percent, right, So if your 266 00:13:19,720 --> 00:13:21,840 Speaker 1: tax rate is I don't even know, like them, that 267 00:13:21,920 --> 00:13:22,640 Speaker 1: might be kind of low. 268 00:13:22,960 --> 00:13:25,040 Speaker 2: Say your tax rate is thirty percent. I'm just making 269 00:13:25,040 --> 00:13:26,000 Speaker 2: it up, right, So. 270 00:13:26,040 --> 00:13:30,080 Speaker 1: Five hundred dollars point times point zero three taxes. That's 271 00:13:30,120 --> 00:13:33,120 Speaker 1: fifteen dollars of taxes paid on five hundred dollars, So 272 00:13:33,200 --> 00:13:35,079 Speaker 1: you're still are coming up. You just would have to 273 00:13:35,080 --> 00:13:36,800 Speaker 1: be paying the fifteen dollars on the five hundred. 274 00:13:36,840 --> 00:13:38,680 Speaker 2: Does that make sense? Hopefully that's helpful. 275 00:13:38,840 --> 00:13:40,840 Speaker 1: All right, We're gonna take a quick break and we'll 276 00:13:40,880 --> 00:13:48,480 Speaker 1: be back back and brown again. Okay, Hey, all my bad. 277 00:13:48,520 --> 00:13:50,520 Speaker 1: So you know your girl is in her soft life error. 278 00:13:50,520 --> 00:13:52,560 Speaker 1: So you might have heard some chit chat in the background. 279 00:13:52,600 --> 00:13:55,120 Speaker 1: That is my cleaning lady, Ingrid and her sister. They're 280 00:13:55,160 --> 00:13:57,360 Speaker 1: cleaning up by beautiful home to get it ready for 281 00:13:57,480 --> 00:14:00,920 Speaker 1: Thanksgiving because I'm taping on Monday. You heard in the background. 282 00:14:01,000 --> 00:14:03,920 Speaker 1: That's because your girls living good. Okay, so judge a mama. 283 00:14:04,120 --> 00:14:06,160 Speaker 1: I'm just joking, but no, it really was InCred I 284 00:14:06,160 --> 00:14:08,280 Speaker 1: will have to be like senior out get to please 285 00:14:08,320 --> 00:14:11,920 Speaker 1: perform vod cilensia before please. But they're really dope though, 286 00:14:12,800 --> 00:14:15,680 Speaker 1: So I just wanted to apologize and advance. All right, 287 00:14:15,800 --> 00:14:18,000 Speaker 1: and let's get back to our final question. 288 00:14:19,280 --> 00:14:20,080 Speaker 2: But see, here's the thing. 289 00:14:20,680 --> 00:14:22,880 Speaker 1: You know, like, I'm giving you all three questions answer, 290 00:14:23,040 --> 00:14:24,720 Speaker 1: So I mean, can you really be Manna? 291 00:14:24,880 --> 00:14:30,200 Speaker 2: You can't this question is for Monique. Hey, Monique says, Hey, 292 00:14:30,280 --> 00:14:32,000 Speaker 2: Tiffany and Mandy. My name is Monique and. 293 00:14:32,040 --> 00:14:36,120 Speaker 1: I absolutely love your podcast. Thanks Monique. I listen faithfully 294 00:14:36,120 --> 00:14:38,600 Speaker 1: every week because I'm trying to get these coins all 295 00:14:38,600 --> 00:14:42,280 Speaker 1: the way together. I have several retail credit cards that 296 00:14:42,360 --> 00:14:44,760 Speaker 1: I am paying off right now because I had a 297 00:14:44,880 --> 00:14:46,080 Speaker 1: terrible shopping addiction. 298 00:14:46,240 --> 00:14:47,920 Speaker 2: Okay, thank you for being candid. 299 00:14:48,360 --> 00:14:50,160 Speaker 1: I know that credit cards can be closed if you 300 00:14:50,200 --> 00:14:53,560 Speaker 1: pay them off and never use them again, which I'm 301 00:14:53,560 --> 00:14:55,000 Speaker 1: assuming can affect my credit score. 302 00:14:55,080 --> 00:14:55,720 Speaker 2: This is true. 303 00:14:55,840 --> 00:14:58,680 Speaker 1: What is your advice regarding maintaining my credit score once 304 00:14:58,840 --> 00:15:02,040 Speaker 1: I have paid off these retails cards in the future, 305 00:15:02,480 --> 00:15:04,320 Speaker 1: if I do want to open cards, I only want 306 00:15:04,320 --> 00:15:06,440 Speaker 1: to use cards that I can pay off monthly and 307 00:15:06,480 --> 00:15:10,440 Speaker 1: then offer traveling points and rewards to think y'all. Okay, Mony, 308 00:15:10,560 --> 00:15:12,240 Speaker 1: this is great because this is I can give you 309 00:15:12,280 --> 00:15:14,800 Speaker 1: an answer directly out of my new book, Maidhole, the 310 00:15:14,840 --> 00:15:22,760 Speaker 1: credit chapter, which is chapter chapter five, page ninety one 311 00:15:22,760 --> 00:15:26,440 Speaker 1: if you have the hardcore book. Okay, so yes, if 312 00:15:26,480 --> 00:15:28,720 Speaker 1: you close. So you said retail let me make sure 313 00:15:28,960 --> 00:15:32,680 Speaker 1: you said retail cards. Now here's the thing. I am 314 00:15:32,720 --> 00:15:35,920 Speaker 1: not a fan of retail cards. I'm not I am. 315 00:15:36,000 --> 00:15:36,560 Speaker 1: I am not. 316 00:15:37,160 --> 00:15:38,000 Speaker 2: Anti credit cards. 317 00:15:38,040 --> 00:15:40,600 Speaker 1: I believe credit cards can be useful tools, but the 318 00:15:40,720 --> 00:15:44,000 Speaker 1: problem with a general like a general credit card, to me, 319 00:15:44,280 --> 00:15:48,120 Speaker 1: is better than a retail card because with a general card, you. 320 00:15:48,040 --> 00:15:52,120 Speaker 2: Can use it anywhere, and you can you can. 321 00:15:52,200 --> 00:15:54,560 Speaker 1: It's easier to be a little more responsible because if 322 00:15:54,560 --> 00:15:56,120 Speaker 1: I have a retail card, say, for example, I have 323 00:15:56,160 --> 00:15:59,720 Speaker 1: a Target credit card, like because Target only wants you 324 00:15:59,760 --> 00:16:02,840 Speaker 1: to use at Target, so I can't just use it anywhere. 325 00:16:02,840 --> 00:16:07,360 Speaker 2: Where with a retail card. With a general card. 326 00:16:07,000 --> 00:16:08,840 Speaker 1: I can use it anywhere, and I can even use 327 00:16:08,880 --> 00:16:11,120 Speaker 1: it in a way Like I tell you in the book, 328 00:16:11,160 --> 00:16:14,040 Speaker 1: I teach you how to raise your credit score fairly 329 00:16:14,120 --> 00:16:17,320 Speaker 1: quickly by doing this method of paying off a small 330 00:16:17,440 --> 00:16:20,400 Speaker 1: balance of your card every single month, I can say, Okay, 331 00:16:20,480 --> 00:16:24,880 Speaker 1: I'm going to put my Planet Fitness ten dollar membership 332 00:16:24,880 --> 00:16:27,160 Speaker 1: on this card, or I'm going to put my Netflix 333 00:16:27,160 --> 00:16:29,320 Speaker 1: membership on this card and paid off every month in 334 00:16:29,320 --> 00:16:31,720 Speaker 1: full to see my credit score grow. If I have 335 00:16:31,800 --> 00:16:34,520 Speaker 1: a Target card, then I have to buy something from 336 00:16:34,520 --> 00:16:36,400 Speaker 1: Target every single month in order to do so. So 337 00:16:36,440 --> 00:16:39,960 Speaker 1: that's an additional expense when I'm already I already have Netflix, 338 00:16:40,000 --> 00:16:40,800 Speaker 1: I already. 339 00:16:40,440 --> 00:16:42,080 Speaker 2: Have the gym membership. Does that make sense? 340 00:16:42,600 --> 00:16:44,920 Speaker 1: So I would pay off these retail cards and quite honestly, 341 00:16:44,960 --> 00:16:47,240 Speaker 1: I will close them. Now you have to know this. 342 00:16:47,320 --> 00:16:52,920 Speaker 1: Then thirty percent of your score is really your balances. 343 00:16:53,200 --> 00:16:56,480 Speaker 1: So when you close your cards, it is going to 344 00:16:57,080 --> 00:17:03,080 Speaker 1: likely lower your score temporarily and pretty significantly because you 345 00:17:03,120 --> 00:17:08,720 Speaker 1: won't have any limit to out to outweigh the balances 346 00:17:08,960 --> 00:17:10,600 Speaker 1: on your card. If that makes sense. So I'll give 347 00:17:10,600 --> 00:17:13,080 Speaker 1: you an example. Thirty percent of your score. I'm looking 348 00:17:13,119 --> 00:17:15,520 Speaker 1: like directly from for those of you who might have 349 00:17:15,560 --> 00:17:17,680 Speaker 1: the book in hand, let's look at it. 350 00:17:17,680 --> 00:17:18,760 Speaker 2: I'm looking at. 351 00:17:19,119 --> 00:17:22,240 Speaker 1: If you have the physical book, which is my favorite 352 00:17:22,280 --> 00:17:24,760 Speaker 1: when it comes to a workbook. I'm looking where am 353 00:17:24,760 --> 00:17:25,920 Speaker 1: I looking at the investment chapter? Girl? 354 00:17:25,920 --> 00:17:27,560 Speaker 2: Give yourself offway together tipically. 355 00:17:27,440 --> 00:17:30,919 Speaker 1: Earlier sis earlier, So I like, what did I tell 356 00:17:30,960 --> 00:17:33,360 Speaker 1: you what page the credit chapter is on? And made 357 00:17:33,520 --> 00:17:43,480 Speaker 1: whole page ninety one? Oh kind, I'm here now, okay, okay, okay, okay, 358 00:17:43,800 --> 00:17:48,480 Speaker 1: reduce your amounts old? Okay, we're looking at page ninety nine. Okay, 359 00:17:48,640 --> 00:17:53,840 Speaker 1: And so really I said the word amounts old or 360 00:17:53,880 --> 00:17:54,639 Speaker 1: your balances. 361 00:17:54,840 --> 00:17:56,720 Speaker 2: Another word for that is utilization. 362 00:17:57,560 --> 00:18:00,199 Speaker 1: So thirty percent of your score is how much if 363 00:18:00,200 --> 00:18:03,639 Speaker 1: your cards are you utilizing. You don't want to utilize 364 00:18:03,680 --> 00:18:08,600 Speaker 1: too much of your cards. The magic number is nothing 365 00:18:08,640 --> 00:18:11,600 Speaker 1: above thirty percent, but really you want to be utilizing 366 00:18:11,600 --> 00:18:15,160 Speaker 1: even way less than that, like even under like fifteen 367 00:18:15,160 --> 00:18:17,359 Speaker 1: to ten percent. What that means is, if you have 368 00:18:17,400 --> 00:18:19,879 Speaker 1: a credit card with the balance of one hundred dollars, 369 00:18:20,320 --> 00:18:22,440 Speaker 1: you want to keep the with the limit I'm sorry, 370 00:18:22,480 --> 00:18:25,160 Speaker 1: of one hundred dollars, you want to keep the balance 371 00:18:25,440 --> 00:18:30,920 Speaker 1: under fifteen dollars. Thirty dollars is the max fifteen ten 372 00:18:31,000 --> 00:18:34,760 Speaker 1: dollars ideal paying it off even better? You know that 373 00:18:34,880 --> 00:18:36,439 Speaker 1: is how you're going to raise your credit score. But 374 00:18:36,480 --> 00:18:39,439 Speaker 1: the problem is with retail cards, you would have to 375 00:18:39,520 --> 00:18:44,000 Speaker 1: buy something just to navigate the keeping your balance is 376 00:18:44,040 --> 00:18:46,240 Speaker 1: low or paid off, and I don't want. 377 00:18:46,080 --> 00:18:47,280 Speaker 2: That for you. So I want you to pay off 378 00:18:47,280 --> 00:18:48,159 Speaker 2: these retail cards. 379 00:18:48,880 --> 00:18:51,760 Speaker 1: Then when you feel like you're more responsible and you 380 00:18:51,760 --> 00:18:56,159 Speaker 1: can automate the payments, then you can look for a 381 00:18:56,240 --> 00:19:01,000 Speaker 1: regular credit card that offers travel warpoints, like for business 382 00:19:01,000 --> 00:19:02,920 Speaker 1: I use AMEX. I also have a personal like gold 383 00:19:02,920 --> 00:19:05,040 Speaker 1: car for AMEX, but I have a silver, not so 384 00:19:05,160 --> 00:19:07,160 Speaker 1: or platinum car for business AX because I found that's 385 00:19:07,160 --> 00:19:11,880 Speaker 1: my favorite card for business, but also too my personal 386 00:19:11,960 --> 00:19:14,600 Speaker 1: card because I like to travel. I have where's my 387 00:19:14,720 --> 00:19:17,120 Speaker 1: Let me see if I find it. Mandy always last 388 00:19:17,160 --> 00:19:18,800 Speaker 1: at me because I always call it the wrong thing. 389 00:19:19,080 --> 00:19:20,520 Speaker 1: So I have my wallet here. Let me call it 390 00:19:20,560 --> 00:19:21,159 Speaker 1: the right thing. 391 00:19:21,119 --> 00:19:25,760 Speaker 2: For once in my life. I have a what is this? 392 00:19:25,800 --> 00:19:25,960 Speaker 1: Oh? 393 00:19:26,080 --> 00:19:26,480 Speaker 2: Okay? 394 00:19:26,760 --> 00:19:30,840 Speaker 1: So Visa has a Sapphires Reserve Card. I like this 395 00:19:30,920 --> 00:19:33,639 Speaker 1: card because they give really great points for travel. I 396 00:19:33,720 --> 00:19:37,880 Speaker 1: literally just use my Amex points to book my mother 397 00:19:38,000 --> 00:19:40,920 Speaker 1: a flight to Nigeria. She wants to go to Nigeria 398 00:19:40,960 --> 00:19:42,960 Speaker 1: for Christmas with my aunt, and so I was able 399 00:19:42,960 --> 00:19:44,680 Speaker 1: to use points, like literally she didn't have to. Well, 400 00:19:44,680 --> 00:19:46,359 Speaker 1: she paid a little bit out of pocket, but the 401 00:19:46,720 --> 00:19:49,919 Speaker 1: tickets were so expensive and the points made the tickets 402 00:19:50,000 --> 00:19:53,200 Speaker 1: really reasonable. But like I said, I have that's Amex, 403 00:19:53,480 --> 00:19:55,439 Speaker 1: but you might not. You know the problem with Amex 404 00:19:55,520 --> 00:19:58,320 Speaker 1: is that the annual fee might not be worth it 405 00:19:58,880 --> 00:20:02,960 Speaker 1: for you. But I like my Chase Sapphire Reserve card. 406 00:20:03,240 --> 00:20:05,520 Speaker 1: You know the fee, the annual fee is more reasonable 407 00:20:05,600 --> 00:20:08,040 Speaker 1: and they give you a lot of great travel rewards. So, 408 00:20:08,080 --> 00:20:11,919 Speaker 1: for example, I just came back this weekend. I was 409 00:20:11,960 --> 00:20:15,879 Speaker 1: in Washington, d C. I was taping. I'm not taping. 410 00:20:15,960 --> 00:20:19,159 Speaker 1: I was. I had a book launch event at the 411 00:20:19,200 --> 00:20:22,600 Speaker 1: Eaton Hotel via Mahogany Books. This is a black Own bookstore, 412 00:20:22,600 --> 00:20:26,280 Speaker 1: which is so awesome. Ramunda her owner, with her husband, 413 00:20:26,720 --> 00:20:31,200 Speaker 1: and so my two sisters wanted to come as well 414 00:20:31,320 --> 00:20:34,640 Speaker 1: as my niece and my nephew Roman and Amelia who's 415 00:20:34,680 --> 00:20:37,560 Speaker 1: eight and six, and so I was going to buy 416 00:20:37,560 --> 00:20:39,480 Speaker 1: train tickets from all of us. It's about a three 417 00:20:39,520 --> 00:20:41,640 Speaker 1: and a half hour to four hour train ride from 418 00:20:41,680 --> 00:20:44,960 Speaker 1: New Jersey to DC. But because it was last minute, 419 00:20:44,960 --> 00:20:47,800 Speaker 1: train tickets tend to be really expensive last minute. It 420 00:20:47,840 --> 00:20:50,359 Speaker 1: was like my admin who was looking, was like twenty 421 00:20:50,359 --> 00:20:52,879 Speaker 1: five hundred dollars to buy all those train tickets, and 422 00:20:52,960 --> 00:20:56,080 Speaker 1: she was like, I suggest you drive. So sure enough, 423 00:20:56,640 --> 00:21:00,480 Speaker 1: we use Enterprise because that's where I get my cars from, 424 00:21:00,520 --> 00:21:03,360 Speaker 1: because I because I get cars from whenever I get 425 00:21:03,359 --> 00:21:06,240 Speaker 1: cars from them, so I'm like a Platinum member or 426 00:21:06,280 --> 00:21:09,720 Speaker 1: whatever the hell they be calling me now. And with Enterprise, 427 00:21:09,960 --> 00:21:13,160 Speaker 1: I told Rose, make sure you book using my Sapphire 428 00:21:13,359 --> 00:21:18,280 Speaker 1: a reserve card because the Sapphire Reserve card gives you 429 00:21:18,280 --> 00:21:19,720 Speaker 1: you know how like when you sign up to get 430 00:21:19,720 --> 00:21:22,920 Speaker 1: a car rental you can get what is that stuff, 431 00:21:22,960 --> 00:21:27,040 Speaker 1: insurance and protection if you use your Sapphire Reserve Card 432 00:21:27,440 --> 00:21:30,160 Speaker 1: because it's a travel card, it actually gives you that 433 00:21:30,600 --> 00:21:33,399 Speaker 1: same protection, so you don't have to pay for an 434 00:21:33,440 --> 00:21:37,440 Speaker 1: additional insurance at enterprise wherever you're renting a car from. 435 00:21:37,520 --> 00:21:39,480 Speaker 1: So it's one of the things I always remind Rose 436 00:21:39,520 --> 00:21:42,280 Speaker 1: my admein like, oh girl, remember when you're booking flights, 437 00:21:42,359 --> 00:21:44,440 Speaker 1: certainly use my AMX card. But you're booking a car, 438 00:21:44,680 --> 00:21:48,560 Speaker 1: use my Sapphire Reserve card. So there's benefits like that, 439 00:21:49,080 --> 00:21:51,679 Speaker 1: but again only when you're ready. 440 00:21:51,720 --> 00:21:52,280 Speaker 2: If you had a. 441 00:21:52,280 --> 00:21:54,840 Speaker 1: Terrible shopping addiction, then I don't want you to jump 442 00:21:54,840 --> 00:21:56,480 Speaker 1: out the window to get brand new cards after you 443 00:21:56,520 --> 00:21:58,159 Speaker 1: pay off the other ones. I would pay off the 444 00:21:58,240 --> 00:22:00,639 Speaker 1: other cards. Sit for a few months. Baby, with no 445 00:22:00,720 --> 00:22:04,560 Speaker 1: credit cards, open up a credit card with very low balance. 446 00:22:04,640 --> 00:22:07,840 Speaker 1: Maybe open up a secured credit card with very low balance, 447 00:22:08,040 --> 00:22:09,959 Speaker 1: very very low limit, like five hundred dollars. 448 00:22:10,320 --> 00:22:12,760 Speaker 2: See how you do with it before moving on to 449 00:22:12,800 --> 00:22:14,359 Speaker 2: some of the big dogs. Does that make sense? 450 00:22:15,040 --> 00:22:19,120 Speaker 1: I hope that helps Monique directly out of my new 451 00:22:19,119 --> 00:22:22,359 Speaker 1: book Made Whole, a Practical Guide to reaching your financial goals. 452 00:22:22,560 --> 00:22:25,160 Speaker 1: If you would learn love to learn how to budget, save, 453 00:22:25,920 --> 00:22:29,360 Speaker 1: manage your credit, manage your debt, learn to earn, learn 454 00:22:29,400 --> 00:22:33,199 Speaker 1: to invest for both retirement and wealth. Learn how to 455 00:22:33,200 --> 00:22:36,520 Speaker 1: make sure you're fully insured. Learn how to pick your 456 00:22:36,560 --> 00:22:39,600 Speaker 1: financial team, how to increase your net worth, and how 457 00:22:39,640 --> 00:22:42,440 Speaker 1: to make sure you are you have the right estate plan. 458 00:22:42,560 --> 00:22:45,200 Speaker 1: Those ten things which I like to call financial wholeness. 459 00:22:45,400 --> 00:22:47,800 Speaker 1: If you would like to achieve financial wholeness, I teach 460 00:22:47,800 --> 00:22:51,200 Speaker 1: you step by step in this new workbook, Made Whole, 461 00:22:51,240 --> 00:22:53,080 Speaker 1: which is the companion book to my New York Times 462 00:22:53,160 --> 00:22:55,680 Speaker 1: bestseller Get You With Money. It is on sale as 463 00:22:55,680 --> 00:22:59,320 Speaker 1: of this week. It is launch week. It is available 464 00:22:59,359 --> 00:23:02,760 Speaker 1: everywhere Target. You'll see me Barnes and Nobles, which I 465 00:23:02,760 --> 00:23:04,600 Speaker 1: think I'm gonna go buy Barnes and Nobles to Target today. 466 00:23:04,600 --> 00:23:06,360 Speaker 2: See if I see my face on the shelf. If 467 00:23:06,359 --> 00:23:09,040 Speaker 2: you see it, please tag me. I'm at the Budgetista. 468 00:23:10,320 --> 00:23:14,560 Speaker 1: And it's also available online at Mad Whole Workbook dot com. 469 00:23:14,600 --> 00:23:16,920 Speaker 1: I think I still have a few signed copies left. 470 00:23:17,160 --> 00:23:19,560 Speaker 1: If there are, it'll be on top of the page. 471 00:23:19,720 --> 00:23:22,320 Speaker 1: It'll say like get your signed copy here. But Made 472 00:23:22,359 --> 00:23:25,760 Speaker 1: Whole Workbook dot Com. And I just want to thank you, 473 00:23:25,760 --> 00:23:27,720 Speaker 1: you know, Brianna Bishin like this is also the week 474 00:23:27,760 --> 00:23:30,840 Speaker 1: of Thanksgiving, and for so many of us who've lost 475 00:23:31,200 --> 00:23:33,800 Speaker 1: loved ones, holidays can be really hard. Certainly it's been 476 00:23:33,800 --> 00:23:36,680 Speaker 1: really hard for me. But you know this, you guys 477 00:23:36,720 --> 00:23:39,479 Speaker 1: have been like consistent family for me and Mandy, and 478 00:23:39,520 --> 00:23:43,280 Speaker 1: so from our family to your family, we wish you, 479 00:23:43,280 --> 00:23:49,239 Speaker 1: you know, just a peaceful, soft, safe holiday season. And 480 00:23:49,280 --> 00:23:51,240 Speaker 1: I hope you are good to yourself and good to 481 00:23:51,280 --> 00:23:54,199 Speaker 1: the people around you. And we'll be back next week. 482 00:23:55,080 --> 00:23:57,840 Speaker 1: If you haven't shared brian A. Bish with your family and. 483 00:23:57,800 --> 00:24:01,159 Speaker 2: Friends, what are you waiting for? We love to have 484 00:24:01,240 --> 00:24:05,640 Speaker 2: more listeners. All right, y'all bye, Wait before you leave, it's. 485 00:24:05,480 --> 00:24:09,320 Speaker 1: Me again, Tiffany. As you know, it is the launch 486 00:24:09,359 --> 00:24:13,280 Speaker 1: week of my new book Made Whole, the companion book 487 00:24:13,359 --> 00:24:16,399 Speaker 1: to my New York Times bestseller Get You With Money, 488 00:24:16,680 --> 00:24:18,520 Speaker 1: And because it's launch week, I wanted to give something 489 00:24:18,560 --> 00:24:22,160 Speaker 1: specifically to my BA fan. I want to give you 490 00:24:22,240 --> 00:24:26,399 Speaker 1: a ten minute clip directly from the audio version of 491 00:24:26,440 --> 00:24:27,959 Speaker 1: the book. Yes, this is my gift to you. I'm 492 00:24:28,000 --> 00:24:30,600 Speaker 1: not giving it to nobody else. So if you got 493 00:24:30,600 --> 00:24:33,040 Speaker 1: some time and you want to listen, this is really 494 00:24:33,200 --> 00:24:35,160 Speaker 1: my favorite part of the book. And I hope it 495 00:24:35,200 --> 00:24:38,520 Speaker 1: really kiss you all that you need. If you want 496 00:24:38,560 --> 00:24:40,639 Speaker 1: to get your copy of Made Whole, you can go 497 00:24:40,720 --> 00:24:44,200 Speaker 1: to Maid Whole Workbook dot com. The link will also 498 00:24:44,240 --> 00:24:47,240 Speaker 1: be in the show notes. And enjoy this audio clip 499 00:24:47,359 --> 00:24:49,880 Speaker 1: and thank y'all for all the support for so long. 500 00:24:49,960 --> 00:24:52,360 Speaker 2: You know, I love y'all. All right bye. 501 00:24:52,440 --> 00:24:58,760 Speaker 1: Chapter one. The made Home Map and mindset. Think of 502 00:24:58,840 --> 00:25:03,120 Speaker 1: financial honess as a destination, a place to set your 503 00:25:03,119 --> 00:25:06,800 Speaker 1: sights on and focus your energy toward. With this mindset, 504 00:25:06,800 --> 00:25:09,480 Speaker 1: you will have winds along the way, and even the 505 00:25:09,560 --> 00:25:12,720 Speaker 1: small steps of progress you make as you pursue becoming 506 00:25:12,800 --> 00:25:16,960 Speaker 1: one hundred percent whole can be life changing. After all, 507 00:25:17,320 --> 00:25:20,520 Speaker 1: success is like the layers of a cake. Each good 508 00:25:20,640 --> 00:25:23,439 Speaker 1: choice builds on the one before it, and before you 509 00:25:23,560 --> 00:25:27,000 Speaker 1: know it, all the seemingly small choices and adjustments you've 510 00:25:27,000 --> 00:25:31,359 Speaker 1: made come together to create an amazing dessert. The cake 511 00:25:31,400 --> 00:25:35,880 Speaker 1: you've built holds remarkable power. It represents all your growth 512 00:25:35,920 --> 00:25:37,959 Speaker 1: as a result of all you've learned. 513 00:25:39,600 --> 00:25:40,440 Speaker 2: Tiffany tip. 514 00:25:41,400 --> 00:25:44,280 Speaker 1: At the end of every school year, my dad always 515 00:25:44,280 --> 00:25:47,760 Speaker 1: reminded me and my sisters that we'd reach a new 516 00:25:47,880 --> 00:25:52,160 Speaker 1: level of education and that, as he said, knowledge once 517 00:25:52,240 --> 00:25:55,679 Speaker 1: given can never be rescinded, and that's how it'll be 518 00:25:55,760 --> 00:25:59,720 Speaker 1: for you as you proceed through the levels of financial wholeness. 519 00:26:02,600 --> 00:26:05,040 Speaker 1: To help you get prepared for your journey, I want 520 00:26:05,040 --> 00:26:07,320 Speaker 1: to give you a preview of the steps to come 521 00:26:08,000 --> 00:26:11,160 Speaker 1: and share some mindset tools to help you make the 522 00:26:11,160 --> 00:26:17,520 Speaker 1: most of your good work. The Ten Steps of Financial Holeness. 523 00:26:18,440 --> 00:26:22,240 Speaker 1: The path to financial holeness has ten steps. Each step, 524 00:26:22,600 --> 00:26:26,159 Speaker 1: which corresponds to one of the next ten chapters, is 525 00:26:26,200 --> 00:26:29,760 Speaker 1: related to an area of your finances, and some will 526 00:26:29,760 --> 00:26:30,680 Speaker 1: require more. 527 00:26:30,520 --> 00:26:34,800 Speaker 2: Work than others. One Build your budget. 528 00:26:36,080 --> 00:26:40,000 Speaker 1: Learn how to create and semi automate a personal budget 529 00:26:40,119 --> 00:26:43,560 Speaker 1: and open the necessary checking and savings accounts to support 530 00:26:43,600 --> 00:26:44,120 Speaker 1: your budget. 531 00:26:45,320 --> 00:26:47,160 Speaker 2: Two Save like a squirrel. 532 00:26:47,560 --> 00:26:50,920 Speaker 1: Calculate the savings goal number needed to meet at least 533 00:26:50,960 --> 00:26:54,879 Speaker 1: three months worth of expenses for your household. Then calculate 534 00:26:55,000 --> 00:26:57,600 Speaker 1: how much you need to save each week and month 535 00:26:57,800 --> 00:27:01,840 Speaker 1: to achieve this goal within twelve to eighteen months. Three 536 00:27:02,280 --> 00:27:05,959 Speaker 1: Dig out of debt. Write out your total debt payments 537 00:27:06,000 --> 00:27:10,480 Speaker 1: and interest rates using the my Debtless template at mad 538 00:27:10,560 --> 00:27:13,760 Speaker 1: Whole workbook dot com. This will give you a clear 539 00:27:13,840 --> 00:27:16,880 Speaker 1: picture of what you owe. Then choose a debt repayment 540 00:27:16,920 --> 00:27:22,879 Speaker 1: strategy and formulate your payoff plan. Four Score high credit. 541 00:27:23,400 --> 00:27:26,240 Speaker 1: Pull your credit score to see where you stand. Make 542 00:27:26,280 --> 00:27:28,879 Speaker 1: a list of the factors that are impacting your score 543 00:27:29,200 --> 00:27:31,439 Speaker 1: that come up with a game plan to improve it. 544 00:27:32,280 --> 00:27:36,840 Speaker 1: Five Learn to earn increase your income. List all of 545 00:27:36,880 --> 00:27:39,440 Speaker 1: the things you've accomplished at your job in the last 546 00:27:39,440 --> 00:27:42,080 Speaker 1: few years that make a good argument for you to 547 00:27:42,080 --> 00:27:45,280 Speaker 1: get a raise. Then make a list of all of 548 00:27:45,320 --> 00:27:48,520 Speaker 1: the tasks or jobs you do at work so you 549 00:27:48,560 --> 00:27:52,560 Speaker 1: can uncover your side hustle skills. Develop an action plan 550 00:27:52,640 --> 00:27:55,080 Speaker 1: that lists what you'll do next to increase your income. 551 00:27:55,960 --> 00:28:01,479 Speaker 1: Six Invest like an insider. Use all automated investment plans 552 00:28:01,480 --> 00:28:05,919 Speaker 1: for retirement and wealth building. Speak with HR about retirement 553 00:28:05,960 --> 00:28:10,359 Speaker 1: plans or set up your own retirement accounts. Automate an 554 00:28:10,400 --> 00:28:13,080 Speaker 1: amount to go into retirement, and brokeras you accounts and 555 00:28:13,200 --> 00:28:16,360 Speaker 1: increase contributions as your income increases. 556 00:28:17,280 --> 00:28:19,320 Speaker 2: Seven. Get good with insurance. 557 00:28:20,240 --> 00:28:24,000 Speaker 1: Make sure you have proper insurance coverage that means understanding 558 00:28:24,040 --> 00:28:29,359 Speaker 1: and calculating your needs around life disability, auto and home insurance, 559 00:28:29,359 --> 00:28:34,440 Speaker 1: and more. Eight Get rich issh increase your net worth. 560 00:28:34,760 --> 00:28:36,879 Speaker 1: Learn how to calculate your net worth and how to 561 00:28:36,960 --> 00:28:40,239 Speaker 1: achieve and maintain a positive net worth. Create a net 562 00:28:40,320 --> 00:28:43,080 Speaker 1: worth goal and define actions you're going to take each 563 00:28:43,160 --> 00:28:44,040 Speaker 1: month to achieve it. 564 00:28:44,800 --> 00:28:45,320 Speaker 2: Nine. 565 00:28:45,680 --> 00:28:49,680 Speaker 1: Pick your money team, choose an accountability partner, and find 566 00:28:49,720 --> 00:28:53,320 Speaker 1: yourself reliable and trustworthy financial professionals. 567 00:28:53,760 --> 00:28:54,000 Speaker 2: Ten. 568 00:28:54,440 --> 00:28:58,360 Speaker 1: Leave a legacy a state planning Actively plan for what 569 00:28:58,480 --> 00:29:01,920 Speaker 1: will happen to your state, cash, real estate, jewelry, and 570 00:29:01,960 --> 00:29:05,960 Speaker 1: other assets after you die. This is important no matter 571 00:29:06,000 --> 00:29:10,000 Speaker 1: the size of your bank account and portfolio. I know 572 00:29:10,160 --> 00:29:12,440 Speaker 1: that at first glance it may seem like a lot 573 00:29:12,520 --> 00:29:14,320 Speaker 1: to take on, and I want to be real with 574 00:29:14,360 --> 00:29:18,280 Speaker 1: you it is. But with patience and dedication, it can 575 00:29:18,360 --> 00:29:21,240 Speaker 1: be done, and it will be made easier if you 576 00:29:21,320 --> 00:29:25,400 Speaker 1: take advantage of the opportunity to answer questions and complete 577 00:29:25,400 --> 00:29:29,200 Speaker 1: the exercises throughout the book. These are designed to help 578 00:29:29,240 --> 00:29:32,320 Speaker 1: you create a deeper connection to the work, and they 579 00:29:32,360 --> 00:29:38,240 Speaker 1: will help you track your progress along the way financial wholeness. 580 00:29:38,280 --> 00:29:38,880 Speaker 2: At a glance. 581 00:29:39,160 --> 00:29:43,000 Speaker 1: Want to get to one hundred percent ten percent when 582 00:29:43,040 --> 00:29:46,880 Speaker 1: you create a budget. You'll get to twenty percent once 583 00:29:46,920 --> 00:29:51,640 Speaker 1: you learn to save, thirty percent if you start to 584 00:29:51,680 --> 00:29:57,720 Speaker 1: reduce your debt, forty percent when you up your credit score. 585 00:29:58,440 --> 00:30:02,760 Speaker 1: Almost halfway there, fifty percent when you start to increase 586 00:30:02,800 --> 00:30:08,040 Speaker 1: your income, sixty percent when you invest like an insider, 587 00:30:09,160 --> 00:30:14,840 Speaker 1: seventy percent when you get insurance, eighty percent when you 588 00:30:14,920 --> 00:30:19,479 Speaker 1: start to increase your net worth, ninety percent when you 589 00:30:19,640 --> 00:30:24,600 Speaker 1: form your money team, and one hundred percent when you 590 00:30:24,720 --> 00:30:32,440 Speaker 1: learn to leave a legacy. The made home mindset. There's 591 00:30:32,480 --> 00:30:35,400 Speaker 1: a lot of financial guidance out there, but too often 592 00:30:35,480 --> 00:30:39,160 Speaker 1: the emotional element, that is what it feels like to 593 00:30:39,200 --> 00:30:42,880 Speaker 1: look directly at the most important facets of your financial 594 00:30:42,920 --> 00:30:46,440 Speaker 1: life is left out. The problem with this is that 595 00:30:46,720 --> 00:30:49,280 Speaker 1: not addressing your emotions can get in the way of 596 00:30:49,360 --> 00:30:53,440 Speaker 1: moving forward and making progress. It's so easy to get 597 00:30:53,520 --> 00:30:56,920 Speaker 1: stuck on the fear or feelings of overwhelm, or the 598 00:30:56,960 --> 00:30:59,800 Speaker 1: sadness and shame that may come up around the topic 599 00:30:59,840 --> 00:31:03,080 Speaker 1: of money and your history with it. But you can 600 00:31:03,240 --> 00:31:07,160 Speaker 1: overcome these obstacles by acknowledging their presence and making some 601 00:31:07,360 --> 00:31:11,239 Speaker 1: mental plans to work through them. I found that there 602 00:31:11,280 --> 00:31:16,000 Speaker 1: are two mindset prep steps that really help. These work 603 00:31:16,280 --> 00:31:19,080 Speaker 1: to sort of wipe the slate clean and set you 604 00:31:19,160 --> 00:31:25,400 Speaker 1: up for the kind of success that sticks. Step one, 605 00:31:25,760 --> 00:31:30,840 Speaker 1: share your shame. Shame thrives in the shadows, and it 606 00:31:30,920 --> 00:31:35,160 Speaker 1: needs silence to be strong, and the stronger and bigger 607 00:31:35,200 --> 00:31:37,880 Speaker 1: your shame grows, the more it can hide from you. 608 00:31:38,400 --> 00:31:41,840 Speaker 1: When you share your shame around financial setbacks you've experienced 609 00:31:42,200 --> 00:31:45,640 Speaker 1: or poor money decisions you've made, you take away its power. 610 00:31:46,640 --> 00:31:49,960 Speaker 1: I felt so much shame around the financial mistakes I 611 00:31:50,040 --> 00:31:54,040 Speaker 1: made that I became almost paralyzed to turn things around. 612 00:31:54,520 --> 00:31:58,560 Speaker 1: The shame kept me from seeing solutions. I finally started 613 00:31:58,560 --> 00:32:01,959 Speaker 1: the process of getting pad ask my shame by giving 614 00:32:02,120 --> 00:32:06,200 Speaker 1: voice to it. I shared my embarrassing financial situations with 615 00:32:06,320 --> 00:32:10,840 Speaker 1: the kindest person I know, my best friend Linda. Telling 616 00:32:10,880 --> 00:32:14,360 Speaker 1: her about the financial whole I've fallen into was the 617 00:32:14,400 --> 00:32:17,520 Speaker 1: start of my journey toward digging my way out. So 618 00:32:17,640 --> 00:32:21,520 Speaker 1: here's my assignment for you. Pick the kindest person you 619 00:32:21,600 --> 00:32:25,840 Speaker 1: know and share a financial secret with them. This person 620 00:32:26,120 --> 00:32:30,760 Speaker 1: might become your accountability partner aka financial bestie, who helps 621 00:32:30,840 --> 00:32:33,560 Speaker 1: keep you on track as you help keep them on 622 00:32:33,640 --> 00:32:38,120 Speaker 1: track throughout your journey to financial wholeness. But for now, 623 00:32:38,400 --> 00:32:41,520 Speaker 1: focus on getting your shame off your shoulders and out. 624 00:32:41,440 --> 00:32:41,880 Speaker 2: Of the way. 625 00:32:42,680 --> 00:32:48,680 Speaker 1: Repeat after me. I will share my shame with someone 626 00:32:48,800 --> 00:32:53,840 Speaker 1: I know, love and trust. I will not keep trying 627 00:32:53,960 --> 00:33:00,680 Speaker 1: to carry this weight all by myself. Step two, give 628 00:33:00,720 --> 00:33:04,840 Speaker 1: yourself grace and space. I made some mistakes in my 629 00:33:04,920 --> 00:33:08,800 Speaker 1: twenties that left me in serious financial distress. Here are 630 00:33:08,880 --> 00:33:13,000 Speaker 1: some of my financial stats. At the time, I had 631 00:33:13,040 --> 00:33:16,360 Speaker 1: thirty five thousand dollars of credit card debt due or scam, 632 00:33:16,760 --> 00:33:20,240 Speaker 1: fifty two thousand in student loans, and a two hundred 633 00:33:20,240 --> 00:33:25,160 Speaker 1: and twenty thousand dollars mortgage. My savings was depleted. I 634 00:33:25,200 --> 00:33:28,200 Speaker 1: had recently been laid off from my preschool teaching job. 635 00:33:28,560 --> 00:33:31,800 Speaker 1: I had lost my condo to a foreclosure. I had 636 00:33:31,800 --> 00:33:36,240 Speaker 1: to move back in with my parents. I was essentially 637 00:33:36,400 --> 00:33:41,040 Speaker 1: the opposite of financially home. I lacked structure and intention 638 00:33:41,320 --> 00:33:44,640 Speaker 1: in planning across the board, and I couldn't forgive myself 639 00:33:44,640 --> 00:33:48,040 Speaker 1: for it all. I know that might sound dramatic, but 640 00:33:48,120 --> 00:33:51,720 Speaker 1: it's true. And it wasn't until I said to myself, 641 00:33:52,320 --> 00:33:57,280 Speaker 1: it's okay, Tiffany, you didn't intentionally harm anyone. You made 642 00:33:57,320 --> 00:34:00,520 Speaker 1: money mistakes that I was able to share my shame 643 00:34:00,560 --> 00:34:04,080 Speaker 1: with Linda and start to forge a new financial path. 644 00:34:04,920 --> 00:34:07,640 Speaker 1: When I look back at that time, I realized that 645 00:34:07,720 --> 00:34:11,480 Speaker 1: I had to give myself grace and space before I 646 00:34:11,520 --> 00:34:16,440 Speaker 1: could evolve. I needed grace, the root of kindness and compassion, 647 00:34:16,680 --> 00:34:21,960 Speaker 1: and space the room to be simultaneously flawed and capable 648 00:34:22,040 --> 00:34:25,760 Speaker 1: of flourishing in the future. As you prepare to embark 649 00:34:25,800 --> 00:34:28,920 Speaker 1: on your own path toward financial homeness, I want you 650 00:34:28,960 --> 00:34:32,720 Speaker 1: to think about your own financial history and any regret 651 00:34:33,000 --> 00:34:37,400 Speaker 1: or remorse you have about choices you've made or circumstances 652 00:34:37,520 --> 00:34:40,760 Speaker 1: around which you've tied yourself up in a lot of blame. 653 00:34:41,800 --> 00:34:45,440 Speaker 1: No matter what your specific scenario, this story is not 654 00:34:45,920 --> 00:34:46,640 Speaker 1: serving you. 655 00:34:47,080 --> 00:34:48,040 Speaker 2: It's time to let it go. 656 00:34:48,520 --> 00:34:52,120 Speaker 1: First, find your own Linda, and give voice to your shame. 657 00:34:52,920 --> 00:34:55,239 Speaker 1: If you don't have someone to share this version with, 658 00:34:55,440 --> 00:34:58,239 Speaker 1: talk to me. I'm at the budget needs to on 659 00:34:58,480 --> 00:35:02,600 Speaker 1: all platforms, and I'm listen. Once you've cracked open the door, 660 00:35:02,880 --> 00:35:07,560 Speaker 1: it's time to forgive yourself by saying it's okay if 661 00:35:07,600 --> 00:35:11,200 Speaker 1: I don't know the next step. My future is full 662 00:35:11,239 --> 00:35:16,319 Speaker 1: of potential. It's okay if I made a mistake, new 663 00:35:16,440 --> 00:35:21,960 Speaker 1: opportunities abound, and it's okay if I let myself down. 664 00:35:22,400 --> 00:35:28,000 Speaker 2: My past does not dictate my future. Who is it 665 00:35:28,120 --> 00:35:28,400 Speaker 2: just me? 666 00:35:28,840 --> 00:35:32,080 Speaker 1: Or are your eyes sweating after hearing those phrases out loud? 667 00:35:33,080 --> 00:35:38,960 Speaker 1: Repeat after me? No matter what, I will give myself 668 00:35:39,120 --> 00:35:48,400 Speaker 1: grace and space creating an environment of support. Emotional housekeeping 669 00:35:48,719 --> 00:35:51,719 Speaker 1: is an important part of tending to your personal finances, 670 00:35:52,080 --> 00:35:56,279 Speaker 1: but your physical housekeeping matters too. Taking the time to 671 00:35:56,320 --> 00:35:58,600 Speaker 1: set up your environment in a way that makes you 672 00:35:58,640 --> 00:36:02,399 Speaker 1: feel calm can help you reduce stress as you get 673 00:36:02,440 --> 00:36:05,839 Speaker 1: started on the steps to financial wholeness. Here are some 674 00:36:05,920 --> 00:36:08,839 Speaker 1: things to add to the spot where you'll keep your 675 00:36:08,880 --> 00:36:13,000 Speaker 1: financial house in order, whether it's a whole room, a nook, 676 00:36:13,400 --> 00:36:16,560 Speaker 1: or just a tabletop in your home where you'll sit 677 00:36:16,680 --> 00:36:22,080 Speaker 1: to do this work. A scented candle, one that makes 678 00:36:22,120 --> 00:36:25,440 Speaker 1: you want to settle in and stay awhile. An emotional 679 00:36:25,480 --> 00:36:28,200 Speaker 1: support blanket, you know, the one you might have to 680 00:36:28,239 --> 00:36:30,920 Speaker 1: fight your significant other, your roomy, or your kids for it. 681 00:36:31,880 --> 00:36:36,840 Speaker 1: Fuzzy socks shoes. I love my fuzzy leopard print house slippers. 682 00:36:37,760 --> 00:36:44,400 Speaker 1: A relaxing, personalized playlist. Shade is my favorite this workbook. 683 00:36:45,520 --> 00:36:47,879 Speaker 1: I would love to hear about any additions you make 684 00:36:47,920 --> 00:36:52,000 Speaker 1: to your space that you find helpful. Share it with 685 00:36:52,040 --> 00:36:56,200 Speaker 1: me on social and use the hashtag made whole, Made Better. 686 00:37:00,920 --> 00:37:01,160 Speaker 1: Six