1 00:00:00,080 --> 00:00:02,240 Speaker 1: This is Kelly Henderson and you are listening to the 2 00:00:02,279 --> 00:00:05,960 Speaker 1: Velvet's Edge podcast. My guest this week is Daniel Burke. 3 00:00:06,320 --> 00:00:10,120 Speaker 1: Daniel is president of local planning firm Burke Financial Group 4 00:00:10,360 --> 00:00:13,920 Speaker 1: ll C. He is also a financial advisor with Eagle 5 00:00:14,000 --> 00:00:19,560 Speaker 1: Strategies ll C, a registered investment advisor, and offer securities 6 00:00:19,600 --> 00:00:24,000 Speaker 1: through Nighlife Securities ll C member Finra s I p C, 7 00:00:24,680 --> 00:00:29,480 Speaker 1: a licensed insurance agency. Burke Financial Group is independently owned 8 00:00:29,520 --> 00:00:34,560 Speaker 1: and operated from Eagle Strategies and its affiliates. Today, Daniel 9 00:00:34,640 --> 00:00:37,520 Speaker 1: is giving us some tips and foundation points for things 10 00:00:37,560 --> 00:00:40,800 Speaker 1: we can be thinking about and working towards financially in 11 00:00:41,040 --> 00:00:45,120 Speaker 1: different age groups, the twenties, the thirties, and the forties. 12 00:00:45,320 --> 00:00:48,879 Speaker 1: Here's our conversation, all right, So you are going to 13 00:00:48,960 --> 00:00:51,760 Speaker 1: give us some tips today or just some information on 14 00:00:51,880 --> 00:00:55,480 Speaker 1: maybe where you should be within certain decades. I mean, 15 00:00:55,560 --> 00:00:57,560 Speaker 1: I know for me, like that is such an overwhelming 16 00:00:57,560 --> 00:00:59,680 Speaker 1: thing because you start to compare yourself to everyone else 17 00:00:59,720 --> 00:01:02,600 Speaker 1: and you're like, am I doing enough? Am I saving enough? 18 00:01:02,960 --> 00:01:05,720 Speaker 1: Am I where I'm supposed to be? So help us out. 19 00:01:05,760 --> 00:01:09,760 Speaker 1: Let's start with the twenties. What will you say that? No? 20 00:01:09,959 --> 00:01:12,200 Speaker 1: For sure? And you know what you mentioned, comparison can 21 00:01:12,240 --> 00:01:15,559 Speaker 1: be the ultimate killer. So I can rob your joy, 22 00:01:15,760 --> 00:01:17,800 Speaker 1: rob your motivation when you think other people are further 23 00:01:17,840 --> 00:01:20,360 Speaker 1: along or have things that you don't. So you really 24 00:01:20,360 --> 00:01:22,039 Speaker 1: have to be careful, you know, and make sure you're 25 00:01:22,080 --> 00:01:24,680 Speaker 1: you're doing self assessments rather than comparing yourself. You know, 26 00:01:25,319 --> 00:01:28,000 Speaker 1: like I said before, your chapter you know five might 27 00:01:28,000 --> 00:01:31,680 Speaker 1: be someone else's chapter thirteen. So, um, before I jump 28 00:01:31,720 --> 00:01:33,679 Speaker 1: into this list, um, you know, a couple of things. 29 00:01:33,720 --> 00:01:35,800 Speaker 1: I just want to mention. Number one, everyone's in a 30 00:01:35,800 --> 00:01:38,240 Speaker 1: different situation. And then number two, you know, we're gonna 31 00:01:38,280 --> 00:01:40,679 Speaker 1: talk about decades. We're gonna talk about things to to 32 00:01:40,760 --> 00:01:43,560 Speaker 1: consider when you're in your twenties, thirties, and forties. But 33 00:01:43,680 --> 00:01:46,400 Speaker 1: also understand, there's a big difference between a thirty one 34 00:01:46,440 --> 00:01:48,480 Speaker 1: year old and a thirty nine year old. So even 35 00:01:48,520 --> 00:01:51,360 Speaker 1: though we're lumping everyone into these decades, uh, you know, 36 00:01:51,440 --> 00:01:54,560 Speaker 1: there's there's definitely some discrepancy. Um, you know. And then 37 00:01:54,600 --> 00:01:56,960 Speaker 1: also along that line too, I'm hoping that you know, 38 00:01:57,040 --> 00:01:58,880 Speaker 1: I might say, hey, this is something you should accomplish 39 00:01:58,920 --> 00:02:01,000 Speaker 1: in your you know, forties or forties, and maybe you 40 00:02:01,040 --> 00:02:03,080 Speaker 1: knocked that in your twenties. That would be great, just 41 00:02:03,120 --> 00:02:05,720 Speaker 1: kind of some high level things to consider. So let's 42 00:02:05,760 --> 00:02:09,600 Speaker 1: kick off the twenties and just gonna come through kind 43 00:02:09,600 --> 00:02:13,400 Speaker 1: of uh, not necessarily an all encompassing list, but some robust, 44 00:02:13,520 --> 00:02:16,080 Speaker 1: robust list here that we see, you know, in the 45 00:02:16,160 --> 00:02:18,960 Speaker 1: various you know, planning meetings that we have with our clients. 46 00:02:18,960 --> 00:02:20,959 Speaker 1: So the first one that I would say is when 47 00:02:20,960 --> 00:02:23,120 Speaker 1: you're in your twenties, one of the best things that 48 00:02:23,160 --> 00:02:25,800 Speaker 1: you can do, uh, and it's a habit through building, 49 00:02:25,919 --> 00:02:30,320 Speaker 1: is just learn how to say no. Yeah. Let me 50 00:02:30,320 --> 00:02:33,160 Speaker 1: elaborate a little bit on that. So it's very difficult 51 00:02:33,160 --> 00:02:34,720 Speaker 1: when you get out of college and you start, you know, 52 00:02:35,240 --> 00:02:37,800 Speaker 1: working in your first job that you just want to 53 00:02:37,800 --> 00:02:39,400 Speaker 1: do everything. You want to go on every trip with 54 00:02:39,440 --> 00:02:41,079 Speaker 1: your friends, you want to go out to eat every 55 00:02:41,120 --> 00:02:44,200 Speaker 1: single night, uh, you know, with with those you care about, UM. 56 00:02:44,320 --> 00:02:45,840 Speaker 1: You want to do all these activities. You want to 57 00:02:45,880 --> 00:02:47,919 Speaker 1: live in a certain places. So it's hard to get 58 00:02:47,960 --> 00:02:50,200 Speaker 1: yourself to say no because you know, for the first 59 00:02:50,200 --> 00:02:52,240 Speaker 1: time in your life you actually have income or a 60 00:02:52,240 --> 00:02:55,440 Speaker 1: decent income. And so a story that that I can 61 00:02:55,440 --> 00:02:57,840 Speaker 1: go back to and kind of share. My wife got 62 00:02:57,919 --> 00:03:02,400 Speaker 1: into um A nurse titioner school here locally in Nashville, Tennessee, 63 00:03:02,400 --> 00:03:05,920 Speaker 1: and then she went on to complete her doctorate, and 64 00:03:06,000 --> 00:03:09,160 Speaker 1: during that time we were paying for very expensive tuition 65 00:03:09,240 --> 00:03:11,120 Speaker 1: and so we just didn't have a lot of discretionary income. 66 00:03:11,560 --> 00:03:13,440 Speaker 1: And so things that we would do is is for 67 00:03:13,560 --> 00:03:15,560 Speaker 1: us are no and still being able to go out 68 00:03:15,600 --> 00:03:17,800 Speaker 1: with people for food or drinks for those types of things. 69 00:03:18,160 --> 00:03:21,639 Speaker 1: Is sometimes we would even eat ahead of time. I 70 00:03:21,639 --> 00:03:23,880 Speaker 1: wouldn't know if I can go out, and we would 71 00:03:23,880 --> 00:03:25,840 Speaker 1: still get you know, to spend time with people and 72 00:03:25,960 --> 00:03:28,280 Speaker 1: social things, but we would have some food and then 73 00:03:28,280 --> 00:03:31,320 Speaker 1: maybe just eat appetizer rather than getting a full meal, 74 00:03:31,360 --> 00:03:33,120 Speaker 1: and so just simple stuff like that. You know, you're 75 00:03:33,160 --> 00:03:37,400 Speaker 1: building all these financial habits, and the stronger the habits are, 76 00:03:37,440 --> 00:03:39,920 Speaker 1: the easier it is, uh, you know, to just continue 77 00:03:39,960 --> 00:03:41,880 Speaker 1: doing that. And so the same thing as like working out, 78 00:03:41,880 --> 00:03:44,400 Speaker 1: you know, very difficult to get started working out or 79 00:03:44,400 --> 00:03:46,720 Speaker 1: getting back into the habit of waking up early. Once 80 00:03:46,760 --> 00:03:49,400 Speaker 1: you get back on that routine, it's not as difficult anymore. 81 00:03:49,440 --> 00:03:51,520 Speaker 1: So learning how to say no to certain things can 82 00:03:51,560 --> 00:03:54,400 Speaker 1: be very key. Okay, I love that one. What else 83 00:03:55,200 --> 00:03:58,520 Speaker 1: number two I would say is start understanding what a 84 00:03:58,560 --> 00:04:00,720 Speaker 1: budget is and what the purposes behind it. Now, it 85 00:04:00,720 --> 00:04:02,720 Speaker 1: doesn't mean you have to be an expert in budgeting 86 00:04:02,760 --> 00:04:05,960 Speaker 1: in your twenties, but understanding what we call is the 87 00:04:06,040 --> 00:04:08,640 Speaker 1: flow of money. And for someone that doesn't necessarily work 88 00:04:08,640 --> 00:04:11,080 Speaker 1: in money every day, you might hear the flow of 89 00:04:11,120 --> 00:04:13,560 Speaker 1: money and not be sure what I mean by that. 90 00:04:13,600 --> 00:04:15,720 Speaker 1: But all that means is, you know, looking at think 91 00:04:15,720 --> 00:04:18,440 Speaker 1: of it like a proverbial kind of funnel, if you will. 92 00:04:18,680 --> 00:04:20,280 Speaker 1: And so at the very top of the funnel, you've 93 00:04:20,320 --> 00:04:22,360 Speaker 1: got your your large you know, what we call your 94 00:04:22,360 --> 00:04:25,560 Speaker 1: gross income, that's before taxes and benefits, and then you've 95 00:04:25,560 --> 00:04:27,520 Speaker 1: got your taxes and benefits that come out, and then 96 00:04:27,560 --> 00:04:29,560 Speaker 1: you've got your rent and all these other things, and 97 00:04:29,560 --> 00:04:31,880 Speaker 1: that funnel gets smaller and smaller at the bottom. So 98 00:04:32,000 --> 00:04:34,880 Speaker 1: just understanding that the more things that you have coming 99 00:04:34,880 --> 00:04:36,880 Speaker 1: out of the funnel, the less you're going to have 100 00:04:36,960 --> 00:04:38,680 Speaker 1: left over at the end of the month. And so 101 00:04:38,800 --> 00:04:40,240 Speaker 1: you know, if you can start going, okay, if I 102 00:04:40,320 --> 00:04:42,760 Speaker 1: make five thousand dollars a month, ten thousand dollars a month, 103 00:04:42,800 --> 00:04:46,159 Speaker 1: whatever that number is for you, how much discretionary income 104 00:04:46,200 --> 00:04:47,840 Speaker 1: do I want to be left at the very bottom, 105 00:04:48,080 --> 00:04:49,880 Speaker 1: because that's what you can do things with that's where 106 00:04:49,920 --> 00:04:52,599 Speaker 1: you can travel and buy things that you want. But 107 00:04:52,720 --> 00:04:54,800 Speaker 1: if you have very little discretionary income at the bottom 108 00:04:54,880 --> 00:04:57,640 Speaker 1: because of really expensive rent and a really high car 109 00:04:57,720 --> 00:05:00,200 Speaker 1: payment and really high student loans, you're just going to 110 00:05:00,279 --> 00:05:03,400 Speaker 1: have left that you can spend on discretionary items. Can 111 00:05:03,400 --> 00:05:05,480 Speaker 1: I tell you, when I hear the word budget, it's 112 00:05:05,520 --> 00:05:10,640 Speaker 1: just like Walt Walk like, it just feels so stifling. 113 00:05:10,960 --> 00:05:14,440 Speaker 1: But I finally, I mean, I'm really late to this game, 114 00:05:14,560 --> 00:05:16,800 Speaker 1: the budget game. I don't think I really started fully 115 00:05:16,800 --> 00:05:21,160 Speaker 1: budgeting until my thirties. But um it once it's kind 116 00:05:21,160 --> 00:05:22,880 Speaker 1: of what you said a second ago. Once you get 117 00:05:22,960 --> 00:05:25,040 Speaker 1: in the habit of it and your brain starts thinking 118 00:05:25,080 --> 00:05:28,000 Speaker 1: that way, it's not as defeating I don't feel. And 119 00:05:28,040 --> 00:05:30,640 Speaker 1: actually it feels very responsible and it can feel very 120 00:05:30,800 --> 00:05:34,600 Speaker 1: good too. And again, if you if you're someone that says, hey, 121 00:05:34,600 --> 00:05:36,760 Speaker 1: I don't want to budget in the traditional sense of 122 00:05:37,240 --> 00:05:38,600 Speaker 1: I don't want to go to the store with you know, 123 00:05:38,600 --> 00:05:41,039 Speaker 1: three dollars for milk and four dollars for bangs and 124 00:05:41,120 --> 00:05:44,359 Speaker 1: six dollars for cheese or whatever your budget looks like. Um, 125 00:05:44,400 --> 00:05:45,560 Speaker 1: you know what you can do is you can just 126 00:05:45,640 --> 00:05:47,560 Speaker 1: kind of set parameters on it. So let's say you 127 00:05:47,640 --> 00:05:50,279 Speaker 1: use a credit card, and let's say everything goes on 128 00:05:50,279 --> 00:05:52,760 Speaker 1: the credit card that you spent. Well, maybe you just 129 00:05:52,839 --> 00:05:55,560 Speaker 1: know that. Hey, if I make five thousand dollars a 130 00:05:55,640 --> 00:05:58,440 Speaker 1: month of you know, gross income, I need to try 131 00:05:58,440 --> 00:06:00,880 Speaker 1: to keep hypothetically my credit card to not going over 132 00:06:00,920 --> 00:06:03,720 Speaker 1: a thousand bucks. Okay, So whether I spent you know, 133 00:06:04,360 --> 00:06:06,760 Speaker 1: a hundred bucks on eggs or whether I spend a 134 00:06:06,800 --> 00:06:09,520 Speaker 1: hundred bucks eating out doesn't matter. Just make sure the 135 00:06:09,520 --> 00:06:11,960 Speaker 1: total bills under a thousand. So it's an easy way 136 00:06:12,000 --> 00:06:14,359 Speaker 1: to not have to micromanage yourself. Also, keep yourself in 137 00:06:14,400 --> 00:06:17,000 Speaker 1: your check and balance when it comes to your monthly spending. 138 00:06:17,160 --> 00:06:19,520 Speaker 1: What would you say, Because you know, I'm a freelance 139 00:06:19,600 --> 00:06:22,640 Speaker 1: person and so no month is ever the same for me, 140 00:06:22,720 --> 00:06:25,320 Speaker 1: Like I don't I don't make the same amount, and 141 00:06:25,360 --> 00:06:28,000 Speaker 1: it's kind of hard for me to predict sometimes even 142 00:06:28,040 --> 00:06:29,880 Speaker 1: how much I'm going to make a month. So for 143 00:06:29,920 --> 00:06:32,200 Speaker 1: a person in a scenario like I am, where maybe 144 00:06:32,200 --> 00:06:35,159 Speaker 1: they're working for themselves, or even if you start your 145 00:06:35,160 --> 00:06:37,160 Speaker 1: own business, this is kind of a scenario, what would 146 00:06:37,200 --> 00:06:40,680 Speaker 1: you recommend as far as budgeting goes for people like us? Yeah, 147 00:06:40,720 --> 00:06:42,760 Speaker 1: there's two things that you could you could consider doing. 148 00:06:42,800 --> 00:06:46,040 Speaker 1: The first one that you could consider doing is saying, hey, listen, 149 00:06:46,080 --> 00:06:48,200 Speaker 1: you know, hell or high water, I feel pretty good 150 00:06:48,200 --> 00:06:49,880 Speaker 1: that I'm always going to make this per month. You know. 151 00:06:50,000 --> 00:06:52,680 Speaker 1: Let's let's use example. Let's say in a bad month, 152 00:06:52,720 --> 00:06:55,400 Speaker 1: I'm making five grand, and a really good month on 153 00:06:55,480 --> 00:06:58,919 Speaker 1: making seven grand, Well, let's budget off that five grand. Okay, 154 00:06:58,960 --> 00:07:00,040 Speaker 1: so we kind of have that set in im for 155 00:07:00,120 --> 00:07:02,200 Speaker 1: some example. Previously it was a thousand bucks a month 156 00:07:02,200 --> 00:07:04,560 Speaker 1: on a credit card is a hypothetical. Um. And then 157 00:07:04,600 --> 00:07:06,800 Speaker 1: if I have a good month, either that's more money 158 00:07:06,839 --> 00:07:08,920 Speaker 1: I can save, or I could spend as a kind 159 00:07:08,920 --> 00:07:11,440 Speaker 1: of a one off based upon that good month. UM. 160 00:07:11,480 --> 00:07:13,600 Speaker 1: So that's one option. Another option is you could go 161 00:07:13,640 --> 00:07:16,200 Speaker 1: based off the percentage method, and so you could say, 162 00:07:16,240 --> 00:07:19,680 Speaker 1: every month, I can spend x amount on these various 163 00:07:19,680 --> 00:07:22,520 Speaker 1: items based upon my income. So if your income, let's 164 00:07:22,520 --> 00:07:24,920 Speaker 1: say your discretionary spending was ten percent of your gross 165 00:07:24,960 --> 00:07:27,920 Speaker 1: income or of your gross income or whatever that number 166 00:07:27,920 --> 00:07:30,920 Speaker 1: is that you arrived at, then if you make five grand, 167 00:07:31,080 --> 00:07:32,960 Speaker 1: well ten percent of five grand is gonna be five 168 00:07:33,000 --> 00:07:36,240 Speaker 1: hundred bucks. Um. You know. If it's seven grand, well 169 00:07:36,280 --> 00:07:38,280 Speaker 1: it's gonna be seven hundred bucks so on and so forth, 170 00:07:38,480 --> 00:07:40,080 Speaker 1: and so those are really the two options. You can 171 00:07:40,080 --> 00:07:42,440 Speaker 1: budget on that worst case scenario, um, and then give 172 00:07:42,480 --> 00:07:45,440 Speaker 1: yourself room, or you can just use a percentage. Okay, 173 00:07:45,560 --> 00:07:48,920 Speaker 1: that's great. YEA. Next thing that we look at is 174 00:07:49,400 --> 00:07:53,280 Speaker 1: just start saving four retirement in some capacity. Okay. I 175 00:07:53,360 --> 00:07:56,360 Speaker 1: don't care if it is five bucks a month or 176 00:07:56,480 --> 00:07:58,760 Speaker 1: fifty bucks a month or seventy five bucks a month. 177 00:07:58,880 --> 00:08:01,960 Speaker 1: You know, it is just about building that financial habit 178 00:08:02,040 --> 00:08:04,560 Speaker 1: of setting money aside for some time in the future, 179 00:08:04,600 --> 00:08:08,160 Speaker 1: you know, hopefully retirement. Um. You know, great places to 180 00:08:08,320 --> 00:08:11,040 Speaker 1: think about and to start. Or if you are employed, 181 00:08:11,200 --> 00:08:13,400 Speaker 1: you know, and you do get a four one K 182 00:08:13,720 --> 00:08:16,120 Speaker 1: or you get a match from your employer, that is 183 00:08:16,160 --> 00:08:19,440 Speaker 1: a great place to start. It's very simple. They give 184 00:08:19,480 --> 00:08:21,560 Speaker 1: you kind of a general lineup of funds that you 185 00:08:21,600 --> 00:08:23,800 Speaker 1: can select from, and there's not a lot of thought 186 00:08:23,800 --> 00:08:27,240 Speaker 1: process involved in it. Okay, So just get get started saving. 187 00:08:27,240 --> 00:08:29,880 Speaker 1: If you are self employed, you know other places that 188 00:08:29,880 --> 00:08:31,600 Speaker 1: are good to look at our you know, maybe I 189 00:08:31,840 --> 00:08:34,120 Speaker 1: RA s or roth iras, those types of accounts are 190 00:08:34,120 --> 00:08:38,840 Speaker 1: phenomenal places just to get some money saving somewhere. Yeah, yeah, 191 00:08:39,000 --> 00:08:42,360 Speaker 1: that's how I do it. Um. Another item that we've 192 00:08:42,360 --> 00:08:43,880 Speaker 1: got in your twenties is try to get a handle 193 00:08:43,920 --> 00:08:45,640 Speaker 1: on your debt. Okay. Now what I mean by that 194 00:08:45,800 --> 00:08:48,319 Speaker 1: is doesn't mean you have to have everything paid off, okay, 195 00:08:48,400 --> 00:08:51,080 Speaker 1: but try to start understanding the impact that the debt 196 00:08:51,160 --> 00:08:54,040 Speaker 1: has on your ability to do the things that you want. Okay. 197 00:08:54,160 --> 00:08:56,719 Speaker 1: So if you've got, you know, credit cards that are 198 00:08:56,760 --> 00:08:59,160 Speaker 1: revolving every single month where you're not paying them off, 199 00:08:59,200 --> 00:09:02,120 Speaker 1: if you've got a high car payment, you've got loaned, 200 00:09:02,120 --> 00:09:05,080 Speaker 1: you've got all these other things, those are ultimately robbing 201 00:09:05,080 --> 00:09:07,960 Speaker 1: your ability to achieve you know, those goals that you 202 00:09:08,000 --> 00:09:10,719 Speaker 1: have and the traveling and whatever else is important to you. 203 00:09:11,200 --> 00:09:13,800 Speaker 1: So start understanding the impact that debt has on your 204 00:09:13,840 --> 00:09:17,000 Speaker 1: finances and start developing a plan to work through. That 205 00:09:17,040 --> 00:09:18,600 Speaker 1: doesn't mean, you know, in your twenties you have to 206 00:09:18,600 --> 00:09:20,559 Speaker 1: have your life figured out and and all your debts 207 00:09:20,559 --> 00:09:22,679 Speaker 1: paid off by any means, um, but you need to 208 00:09:22,720 --> 00:09:24,640 Speaker 1: understand the impact there. I think a lot of people 209 00:09:24,679 --> 00:09:27,280 Speaker 1: get into using a credit card and they're always painted 210 00:09:27,280 --> 00:09:29,560 Speaker 1: off every month, and then guess what, all of a sudden, 211 00:09:29,920 --> 00:09:31,520 Speaker 1: you know, there's one big expense that goes on the 212 00:09:31,520 --> 00:09:33,320 Speaker 1: credit card that they just can't pay off that month, 213 00:09:33,559 --> 00:09:36,200 Speaker 1: and then that starts the cycle of revolving that credit 214 00:09:36,240 --> 00:09:38,400 Speaker 1: card debt, and it can be a very vicious cycle 215 00:09:38,440 --> 00:09:40,920 Speaker 1: to try to get out of UM. So that would 216 00:09:40,920 --> 00:09:43,319 Speaker 1: be something else that I would say is understand debt 217 00:09:43,320 --> 00:09:44,640 Speaker 1: and the impact that it has on your day to 218 00:09:44,679 --> 00:09:46,720 Speaker 1: day finances. Well, I was just gonna I was thinking 219 00:09:46,760 --> 00:09:49,360 Speaker 1: that as you were talking, because you know, you mentioned 220 00:09:49,520 --> 00:09:52,120 Speaker 1: to start learning how to save, and when you say 221 00:09:52,200 --> 00:09:54,000 Speaker 1: even for a retirement, I mean I think that to 222 00:09:54,040 --> 00:09:56,160 Speaker 1: when I was in my twenties. I'm like, I wasn't 223 00:09:56,160 --> 00:09:58,880 Speaker 1: thinking about that, you know, like you're thinking or I 224 00:09:58,960 --> 00:10:01,120 Speaker 1: was at least thinking about how do I even get 225 00:10:01,120 --> 00:10:03,640 Speaker 1: the job that I want? And like there's a lot 226 00:10:03,679 --> 00:10:07,960 Speaker 1: of UM. Maybe you just don't even understand the concept 227 00:10:08,200 --> 00:10:11,760 Speaker 1: of savings or debt. And so are you seeing a 228 00:10:11,800 --> 00:10:14,440 Speaker 1: lot of younger people coming in with massive amounts of 229 00:10:14,480 --> 00:10:18,560 Speaker 1: debt these days? We are, but it's mainly student loans. 230 00:10:18,960 --> 00:10:20,800 Speaker 1: That's that's I would say that's the biggest issue that 231 00:10:20,800 --> 00:10:23,520 Speaker 1: we're seeing right now. Most of the people that approach us, 232 00:10:23,760 --> 00:10:26,440 Speaker 1: we can have some that are you know, have some 233 00:10:26,440 --> 00:10:28,720 Speaker 1: credit card debt, but we we don't have anyone that 234 00:10:28,760 --> 00:10:31,240 Speaker 1: it's really severe what I would call I think a 235 00:10:31,280 --> 00:10:32,840 Speaker 1: lot of people are more aware. I think credit card 236 00:10:32,880 --> 00:10:34,599 Speaker 1: debt used to be a big issue, a lot of 237 00:10:34,679 --> 00:10:36,600 Speaker 1: education about it, and now I think the new big 238 00:10:36,679 --> 00:10:39,960 Speaker 1: issue is student the student loan crisis. Um. And understanding 239 00:10:39,960 --> 00:10:41,880 Speaker 1: that a lot of our clients are our physicians as well, 240 00:10:41,960 --> 00:10:44,800 Speaker 1: and so you know that just comes medical school comes 241 00:10:44,800 --> 00:10:47,000 Speaker 1: with a lot of student loan debt typically, so so 242 00:10:47,040 --> 00:10:53,560 Speaker 1: we're pretty aware of. Uh yeah, yeah, exactly. Okay, what else? Um, 243 00:10:53,679 --> 00:10:55,400 Speaker 1: last two things that I've got is Number one, start 244 00:10:55,400 --> 00:10:58,320 Speaker 1: working towards a fully funded emergency fund. Again, this doesn't 245 00:10:58,320 --> 00:11:00,200 Speaker 1: mean you have to achieve that in your twenty easy. 246 00:11:00,200 --> 00:11:02,280 Speaker 1: If you can, great, I think that's a great foundation 247 00:11:02,320 --> 00:11:05,280 Speaker 1: to planning. Um. You know, but what a fully funded 248 00:11:05,280 --> 00:11:07,800 Speaker 1: emergency fund is is it should be three to six 249 00:11:07,840 --> 00:11:10,200 Speaker 1: months of your living expenses. That's it. So let's say 250 00:11:10,200 --> 00:11:13,600 Speaker 1: you're making five thousand dollars a month of gross income 251 00:11:14,120 --> 00:11:16,600 Speaker 1: and it takes three thousand dollars a month for you 252 00:11:16,640 --> 00:11:19,240 Speaker 1: to live off with your rent and food and utilities 253 00:11:19,240 --> 00:11:21,280 Speaker 1: and all that kind of stuff, Well, you should have 254 00:11:21,320 --> 00:11:24,280 Speaker 1: anywhere from you know, nine grand the eighteen grand as 255 00:11:24,320 --> 00:11:27,280 Speaker 1: an emergency fund. Okay, and that's again going back to 256 00:11:27,320 --> 00:11:29,960 Speaker 1: that previous point on the credit card debt. That will 257 00:11:30,040 --> 00:11:32,280 Speaker 1: keep you from if your car breaks down or the 258 00:11:32,320 --> 00:11:35,200 Speaker 1: Washington dryer goes out, or something you know big that happens, 259 00:11:35,240 --> 00:11:37,120 Speaker 1: that's gonna be a kind of a major expense to 260 00:11:37,160 --> 00:11:39,600 Speaker 1: purchase or to fix. That's gonna keep you from having 261 00:11:39,600 --> 00:11:41,000 Speaker 1: to put it on a credit card because you've got 262 00:11:41,080 --> 00:11:43,720 Speaker 1: that cash on hands. So it's really the basis of 263 00:11:43,840 --> 00:11:47,480 Speaker 1: all planning. Everything else builds upon that, you know, retirement planning, 264 00:11:47,520 --> 00:11:50,840 Speaker 1: investment planning, um, saving for a house. Everything goes on 265 00:11:50,920 --> 00:11:53,240 Speaker 1: top of the emergency fund. That's step one. Okay. So 266 00:11:53,280 --> 00:11:57,080 Speaker 1: emergency fund is step one of your savings account. So 267 00:11:57,120 --> 00:12:00,839 Speaker 1: this is separate from another's wings account and trying to 268 00:12:00,880 --> 00:12:03,480 Speaker 1: understand them. Yeah, they should be separate from like retirement 269 00:12:03,559 --> 00:12:06,599 Speaker 1: and other things because retirement you don't really want to 270 00:12:06,679 --> 00:12:08,160 Speaker 1: rob that because that's what we're going to live on 271 00:12:08,160 --> 00:12:09,640 Speaker 1: in the future where we don't have the ability, you 272 00:12:09,679 --> 00:12:12,240 Speaker 1: don't have the desire to work anymore. Um. And so 273 00:12:12,559 --> 00:12:14,920 Speaker 1: if we every time an expense comes up, we started 274 00:12:14,920 --> 00:12:17,720 Speaker 1: dipping into our retirement accounts, guess what you're gonna come 275 00:12:17,760 --> 00:12:20,040 Speaker 1: you know, seventy years old and still be working, and 276 00:12:20,120 --> 00:12:21,600 Speaker 1: so we want to make sure that we avoid that too. 277 00:12:21,600 --> 00:12:23,360 Speaker 1: So we've got to save on top of that. Okay, 278 00:12:23,360 --> 00:12:26,959 Speaker 1: So we have our emergency fund savings account eventually when 279 00:12:26,960 --> 00:12:28,440 Speaker 1: we get to it, and we'll talk more about this 280 00:12:28,480 --> 00:12:30,800 Speaker 1: in a little bit, but we have a retirement fund. 281 00:12:30,840 --> 00:12:33,080 Speaker 1: Is there another savings account that we're supposed to be 282 00:12:33,120 --> 00:12:36,839 Speaker 1: doing that's necessarily initially, And remember everyone's goals are different. 283 00:12:36,880 --> 00:12:39,080 Speaker 1: So we've got some people that we work with where 284 00:12:39,120 --> 00:12:41,679 Speaker 1: you know, they've got a cash emergency fund of let's 285 00:12:41,720 --> 00:12:46,079 Speaker 1: say it's dollars in cash, and then everything else goes 286 00:12:46,080 --> 00:12:49,120 Speaker 1: into these various retirement accounts for some time in the future. 287 00:12:49,400 --> 00:12:51,880 Speaker 1: And then we've got other clients that have real estate 288 00:12:51,920 --> 00:12:54,200 Speaker 1: and investment accounts, retirement and all these others. So it 289 00:12:54,280 --> 00:12:56,600 Speaker 1: really just depends on what type of lifestyle you want 290 00:12:56,600 --> 00:12:57,880 Speaker 1: to live in the future and what you have the 291 00:12:57,920 --> 00:13:00,360 Speaker 1: ability to say. I mean, you know, if you don't 292 00:13:00,360 --> 00:13:01,959 Speaker 1: have the ability to save, then you can only say 293 00:13:02,000 --> 00:13:04,480 Speaker 1: with the amount of money that you've got, yeah, because 294 00:13:04,480 --> 00:13:06,360 Speaker 1: I think you know, especially if you're in your twenties 295 00:13:06,400 --> 00:13:08,560 Speaker 1: listening to this and we're sitting here talking about like 296 00:13:08,640 --> 00:13:13,480 Speaker 1: savings for three months of bills in my twenties would 297 00:13:13,480 --> 00:13:15,760 Speaker 1: have just been like laughable, you know, Like I was 298 00:13:15,800 --> 00:13:17,720 Speaker 1: just trying to get by most of the time. And 299 00:13:17,800 --> 00:13:21,600 Speaker 1: so what do you say. If someone's listening, they're like, yeah, right, 300 00:13:21,679 --> 00:13:24,360 Speaker 1: like what is the best or easiest way to maybe 301 00:13:24,360 --> 00:13:27,560 Speaker 1: actually start? Yeah, well, you know, and that's funny too, Kelly, 302 00:13:27,600 --> 00:13:30,880 Speaker 1: because I think that the twenties, uh, you're so used 303 00:13:30,920 --> 00:13:33,480 Speaker 1: to living the college life anyways, that it's hilarious what 304 00:13:33,520 --> 00:13:36,640 Speaker 1: you can get by with. Like whereas you know, I am, 305 00:13:37,080 --> 00:13:39,640 Speaker 1: you know, in my thirties, and it would take a 306 00:13:39,679 --> 00:13:42,199 Speaker 1: lot more for me to get by totally. I've got 307 00:13:42,200 --> 00:13:44,280 Speaker 1: a spouse, you know, I've got you know, mortgage, all 308 00:13:44,280 --> 00:13:46,320 Speaker 1: those other things. And so that's a cool thing about 309 00:13:46,360 --> 00:13:48,920 Speaker 1: your twenties is you've got a lot of flexibility. But 310 00:13:49,000 --> 00:13:50,800 Speaker 1: the first place to start, you just have to have goal. 311 00:13:50,880 --> 00:13:52,480 Speaker 1: You have to start out with that budget or that 312 00:13:52,559 --> 00:13:55,640 Speaker 1: cash flow, because you gotta see, Hey, could I say 313 00:13:55,679 --> 00:13:57,560 Speaker 1: five hundred bucks a month and put it off into 314 00:13:57,559 --> 00:13:59,640 Speaker 1: a savings or a money market account somewhere that it 315 00:13:59,679 --> 00:14:03,439 Speaker 1: could sit there and accumulate over time. Yeah, And if 316 00:14:03,480 --> 00:14:05,760 Speaker 1: you say no, like I bring in five thousand a 317 00:14:05,760 --> 00:14:07,920 Speaker 1: month and five thousand goes out the door, you know, 318 00:14:08,000 --> 00:14:10,480 Speaker 1: to expenses and taxes and all that other stuff. Well, 319 00:14:10,600 --> 00:14:12,679 Speaker 1: then we got to figure something out. Option one is 320 00:14:12,679 --> 00:14:14,319 Speaker 1: you gotta make a little bit more money, or option 321 00:14:14,360 --> 00:14:16,360 Speaker 1: two you've got to spend a little bit less. But 322 00:14:16,440 --> 00:14:18,200 Speaker 1: so you gotta go through that book and go, hey, 323 00:14:18,200 --> 00:14:21,240 Speaker 1: I'm spending way too much eating out or I'm spending 324 00:14:21,280 --> 00:14:23,320 Speaker 1: you know, more than I need to want insurances. Maybe 325 00:14:23,320 --> 00:14:25,240 Speaker 1: I could shot that out and see if I could 326 00:14:25,280 --> 00:14:27,680 Speaker 1: find those somewhere else. Yeah. You know what's been so 327 00:14:27,760 --> 00:14:30,240 Speaker 1: interesting about this pandemic is I think that a lot 328 00:14:30,280 --> 00:14:34,080 Speaker 1: of us have learned that we probably don't need all 329 00:14:34,120 --> 00:14:36,400 Speaker 1: of the things that we've been spending money on. I mean, 330 00:14:36,440 --> 00:14:38,600 Speaker 1: I know, for me, the second this hit, I started 331 00:14:38,600 --> 00:14:41,320 Speaker 1: to cut certain things and I have not missed them, 332 00:14:41,360 --> 00:14:43,600 Speaker 1: you know, like I didn't realize how much money I 333 00:14:43,720 --> 00:14:47,480 Speaker 1: was just flag flag really wow, that word is really 334 00:14:47,480 --> 00:14:51,080 Speaker 1: hard for reasons. The spending though, especially the eating out 335 00:14:51,120 --> 00:14:53,800 Speaker 1: and like the postmates and all of that stuff, how 336 00:14:53,920 --> 00:14:57,160 Speaker 1: much that adds up. You know, it's the eating out 337 00:14:57,200 --> 00:15:00,360 Speaker 1: for us has been funny with the pandemic. But then also, um, 338 00:15:00,600 --> 00:15:02,320 Speaker 1: which I know this you have a lot of fascist 339 00:15:02,320 --> 00:15:04,440 Speaker 1: stuff in here, but like clothing, yeah, because you don't 340 00:15:04,440 --> 00:15:08,760 Speaker 1: need to. I literally I think I wear you know, 341 00:15:09,200 --> 00:15:12,400 Speaker 1: the same polo shirt or T shirt, Yeah, your vest, 342 00:15:13,080 --> 00:15:16,680 Speaker 1: resume call, you know that I do. But it's just 343 00:15:16,840 --> 00:15:19,320 Speaker 1: it's part of life. So will that change in the future, 344 00:15:19,360 --> 00:15:21,680 Speaker 1: hopefully when everything opens back up, right, But yeah, it 345 00:15:21,720 --> 00:15:24,200 Speaker 1: kind of shows you what's important exactly in the day. 346 00:15:24,400 --> 00:15:27,160 Speaker 1: You know, I am not going to thirty years from 347 00:15:27,160 --> 00:15:28,480 Speaker 1: now and go back on me and I wish I 348 00:15:28,480 --> 00:15:30,720 Speaker 1: would have bought that, you know, those pants or that 349 00:15:30,840 --> 00:15:33,280 Speaker 1: shirt or that you know, jacket or something like that. 350 00:15:33,360 --> 00:15:35,040 Speaker 1: Are those fun in the moment? Is there anything wrong 351 00:15:35,080 --> 00:15:37,400 Speaker 1: with those? No? But they're not ultimately what's getting me 352 00:15:37,440 --> 00:15:40,080 Speaker 1: towards you know, my long term goals exactly. And that's 353 00:15:40,160 --> 00:15:42,600 Speaker 1: kind of been what I've learned is as much as 354 00:15:42,640 --> 00:15:45,080 Speaker 1: it's hard for me with the clothing thing is tough 355 00:15:45,600 --> 00:15:48,480 Speaker 1: to let go of, but you know, you just don't 356 00:15:48,520 --> 00:15:51,600 Speaker 1: have the same needs right now that you necessarily would 357 00:15:51,640 --> 00:15:54,400 Speaker 1: in the future and like or you have in the past. 358 00:15:54,480 --> 00:15:57,240 Speaker 1: And so it's just been very very interesting to see 359 00:15:57,480 --> 00:16:00,640 Speaker 1: how little I can actually get by on You've got it. 360 00:16:00,880 --> 00:16:03,880 Speaker 1: You've got it, So anything else for our twenties lasting 361 00:16:03,920 --> 00:16:06,240 Speaker 1: and then your twenties is I would always recommend, uh, 362 00:16:06,280 --> 00:16:08,960 Speaker 1: you know, assess insurances. Okay, so if you're winting, make 363 00:16:08,960 --> 00:16:11,920 Speaker 1: sure you've got the proper renters insurance. UM. If you 364 00:16:11,920 --> 00:16:14,200 Speaker 1: are in your twenties and you're married or have kids, 365 00:16:14,280 --> 00:16:16,600 Speaker 1: you know, life insurances is definitely a good idea to 366 00:16:16,640 --> 00:16:19,040 Speaker 1: look at there. It doesn't have to be expensive. And 367 00:16:19,040 --> 00:16:21,360 Speaker 1: then also disability insurance, and that is one that I 368 00:16:21,360 --> 00:16:23,800 Speaker 1: think it's highly overlooked. You know, when we look at 369 00:16:23,800 --> 00:16:25,760 Speaker 1: what your greatest st asset is, it's your ability to 370 00:16:25,760 --> 00:16:28,520 Speaker 1: earn future income. You know, in your twenties, you don't 371 00:16:28,560 --> 00:16:30,120 Speaker 1: have a lot of money saved, you don't probably have 372 00:16:30,160 --> 00:16:31,920 Speaker 1: a lot of money in a retirement account. You might 373 00:16:31,960 --> 00:16:34,600 Speaker 1: have a home, you might not um. But you know, 374 00:16:34,600 --> 00:16:37,040 Speaker 1: if we look at if you're making you know, thirty 375 00:16:37,080 --> 00:16:39,440 Speaker 1: thousand a year, fifty thousand, a hundred thousand, five hundred 376 00:16:39,440 --> 00:16:42,000 Speaker 1: thousand a year, doesn't matter, if we multiply that by 377 00:16:42,040 --> 00:16:44,480 Speaker 1: the next thirty or forty years until you're retired, that's 378 00:16:44,480 --> 00:16:46,240 Speaker 1: a lot of money. And so that's what we need 379 00:16:46,240 --> 00:16:48,120 Speaker 1: to try to protect. If something happens and you can't 380 00:16:48,160 --> 00:16:50,800 Speaker 1: perform what you were trained or what your you know, 381 00:16:51,240 --> 00:16:53,280 Speaker 1: current profession is, then we're going to be in a 382 00:16:53,280 --> 00:16:54,840 Speaker 1: world of hurt and all these other goals that we 383 00:16:54,840 --> 00:16:57,120 Speaker 1: have are gonna be able to be accomplished. So, you know, 384 00:16:57,160 --> 00:16:59,240 Speaker 1: some of those insurances are good to assess. But again, 385 00:16:59,240 --> 00:17:03,320 Speaker 1: it doesn't have to be an expensive proposition in your twenties, Okay, okay, okay. 386 00:17:03,400 --> 00:17:06,000 Speaker 1: So then that's the twenties. So where are we going 387 00:17:06,040 --> 00:17:10,320 Speaker 1: in our thirties? Ah, thirties Okay, thirties is where I 388 00:17:10,359 --> 00:17:14,320 Speaker 1: am speak. Yes, I think thirties in my opinion, it's 389 00:17:14,359 --> 00:17:16,240 Speaker 1: not just because I'm in here in my thirties and 390 00:17:16,280 --> 00:17:18,560 Speaker 1: you're in your thirties. I think it is the most 391 00:17:18,640 --> 00:17:21,000 Speaker 1: important decade. And the reason that I think it's the 392 00:17:21,040 --> 00:17:23,000 Speaker 1: most important decade when it comes to kind of setting 393 00:17:23,000 --> 00:17:27,240 Speaker 1: yourself up, you know for a good financial um longevity 394 00:17:27,280 --> 00:17:29,520 Speaker 1: is because we still got a good amount of time 395 00:17:29,560 --> 00:17:31,639 Speaker 1: before retirement. You know, let's say you're in your early thirties, 396 00:17:31,680 --> 00:17:34,120 Speaker 1: you probably still have thirty the thirty five years you're 397 00:17:34,200 --> 00:17:37,080 Speaker 1: you're late thirties, you stokt you know, twenty five years 398 00:17:37,119 --> 00:17:39,280 Speaker 1: somewhere in that neighborhood. And so the first thing that 399 00:17:39,280 --> 00:17:41,280 Speaker 1: we want to do is really really really really really 400 00:17:41,280 --> 00:17:43,360 Speaker 1: get a handle in your student loan debt. Ultimately, i'd 401 00:17:43,400 --> 00:17:45,119 Speaker 1: love for you and your thirties to have all of 402 00:17:45,160 --> 00:17:48,320 Speaker 1: your student loan debt gone. If you still have that. Okay, Now, 403 00:17:48,359 --> 00:17:50,200 Speaker 1: a lot of that depends on the amount and know 404 00:17:50,280 --> 00:17:52,160 Speaker 1: what your income is and what you know, what you're 405 00:17:52,200 --> 00:17:54,919 Speaker 1: able to afford. But um, you know, we want to 406 00:17:54,920 --> 00:17:56,600 Speaker 1: get you to where when you're in your forties, you're 407 00:17:56,680 --> 00:17:59,600 Speaker 1: hitting on all cylinders, you're really knocking out all of 408 00:17:59,600 --> 00:18:01,720 Speaker 1: your goal and you're kind of fully funding things the 409 00:18:01,760 --> 00:18:03,960 Speaker 1: way that need to be. And it's difficult. You know, 410 00:18:04,240 --> 00:18:06,439 Speaker 1: if you've got student loan debt that's a thousand a 411 00:18:06,480 --> 00:18:09,639 Speaker 1: month as far as a payment goes nth We've got 412 00:18:09,680 --> 00:18:12,120 Speaker 1: clients to have, uh, you know, five thousand a month 413 00:18:12,160 --> 00:18:14,240 Speaker 1: and student loan debt, and some physicians that have just 414 00:18:14,280 --> 00:18:17,040 Speaker 1: a lot of student loan debt, and so that really 415 00:18:17,080 --> 00:18:19,600 Speaker 1: pulls away from you spending money on other things on yourself, 416 00:18:19,680 --> 00:18:22,320 Speaker 1: on retirement savings or traveling, on whatever else you want 417 00:18:22,320 --> 00:18:24,800 Speaker 1: to do. So getting a handle on your student loan 418 00:18:24,840 --> 00:18:28,840 Speaker 1: debt is paramount in your thirties. Good next is I 419 00:18:29,240 --> 00:18:31,040 Speaker 1: love to see people own a home by the by, 420 00:18:31,240 --> 00:18:33,800 Speaker 1: you know, when they're in their their thirties. Um. I 421 00:18:33,800 --> 00:18:37,880 Speaker 1: think it's a great financial purchase. Now. Uh, the American 422 00:18:37,960 --> 00:18:39,879 Speaker 1: dream is owning a home. And we see people that 423 00:18:39,920 --> 00:18:41,320 Speaker 1: buy a home just because they're told they need to 424 00:18:41,320 --> 00:18:42,840 Speaker 1: buy a home, and it's not a good purchase. You know, 425 00:18:42,960 --> 00:18:47,560 Speaker 1: they haven't saved up for you know, a reasonable down payment. Um. 426 00:18:47,680 --> 00:18:49,400 Speaker 1: You know, they don't have good credits, so they're interest 427 00:18:49,480 --> 00:18:53,080 Speaker 1: rate is you know, exorbitant. Um. They don't understand, you know, 428 00:18:53,480 --> 00:18:55,840 Speaker 1: how the location of your house is so important as 429 00:18:55,840 --> 00:18:58,880 Speaker 1: far as future appreciation, all these different things. And that's 430 00:18:58,920 --> 00:19:00,960 Speaker 1: really where it comes to. You know, work with a 431 00:19:00,960 --> 00:19:03,320 Speaker 1: good realtor, work with a good mortgage professional. That's what 432 00:19:03,359 --> 00:19:06,480 Speaker 1: these people are trained to do. Um. And so you know, 433 00:19:06,560 --> 00:19:08,280 Speaker 1: you really need to make sure that if you're going 434 00:19:08,320 --> 00:19:10,520 Speaker 1: to make that big step on personing your first home, 435 00:19:10,800 --> 00:19:12,720 Speaker 1: that you've kind of got that team around you advising 436 00:19:12,720 --> 00:19:17,080 Speaker 1: you so you don't have to just do it blindly. Yep. Um. Next, 437 00:19:17,080 --> 00:19:18,840 Speaker 1: we've got a budget for fun. You know, I've talked 438 00:19:18,840 --> 00:19:21,000 Speaker 1: about budget for expenses and budget for retirement, but I 439 00:19:21,040 --> 00:19:24,000 Speaker 1: think it's okay to budget for fun for me this, 440 00:19:24,400 --> 00:19:27,440 Speaker 1: I made this fun. You have to budget for some fun. 441 00:19:28,000 --> 00:19:30,760 Speaker 1: Oh man. It's you know, there's all these things that 442 00:19:30,800 --> 00:19:33,280 Speaker 1: we could be doing with our money, Okay, and it 443 00:19:33,400 --> 00:19:35,919 Speaker 1: is important to be responsible with our funds. But also 444 00:19:36,280 --> 00:19:38,440 Speaker 1: if we're always saving all of our money and we're 445 00:19:38,480 --> 00:19:41,280 Speaker 1: never enjoying any of it, sometimes that robs us at 446 00:19:41,280 --> 00:19:44,679 Speaker 1: the motivation that keeps us growing. So uh, you know, 447 00:19:44,760 --> 00:19:47,000 Speaker 1: for me, I've got certain things that I'd like to 448 00:19:47,000 --> 00:19:49,639 Speaker 1: spend money on um and but I've also got to 449 00:19:49,680 --> 00:19:52,600 Speaker 1: keep them with reasons. So it's just that balance. Everything 450 00:19:52,640 --> 00:19:54,680 Speaker 1: that I spend on something pulls away from something else. 451 00:19:54,720 --> 00:19:56,679 Speaker 1: So you just got to be comfortable is whether you're 452 00:19:56,680 --> 00:19:59,399 Speaker 1: putting those funds. Most of our clients, the thing that 453 00:19:59,440 --> 00:20:01,919 Speaker 1: they really in joy outside of a pandemic is travel. 454 00:20:02,080 --> 00:20:05,000 Speaker 1: That's really where people Everyone says they want to travel more, 455 00:20:05,200 --> 00:20:07,399 Speaker 1: every single person that we work with, you know, So 456 00:20:07,440 --> 00:20:09,080 Speaker 1: you've got to make sure that you're setting money aside 457 00:20:09,080 --> 00:20:12,360 Speaker 1: because it can help, you know, rejuvenate, regenerate your motivation 458 00:20:12,400 --> 00:20:15,240 Speaker 1: long term. Yes, I agree with that wholeheartedly. And it 459 00:20:15,320 --> 00:20:17,680 Speaker 1: makes it when you're putting the money into the savings, 460 00:20:17,840 --> 00:20:20,000 Speaker 1: but you're also putting maybe some money into a fun 461 00:20:20,040 --> 00:20:23,160 Speaker 1: account makes it just a little more enticing. It does. 462 00:20:23,359 --> 00:20:26,280 Speaker 1: It does. But by the end of your thirties, we 463 00:20:26,320 --> 00:20:29,520 Speaker 1: would love to see you um setting aside anywhere from 464 00:20:30,640 --> 00:20:34,199 Speaker 1: your income um into savings. That's an ultimate goal kind 465 00:20:34,240 --> 00:20:35,800 Speaker 1: of at the end of it. Now if you can 466 00:20:35,880 --> 00:20:38,719 Speaker 1: hit it, obviously you know earlier in your early thirties, 467 00:20:38,720 --> 00:20:41,360 Speaker 1: and that's ideal, But that's kind of something we love 468 00:20:41,400 --> 00:20:44,240 Speaker 1: to try to get people to. Their gross pay is 469 00:20:44,280 --> 00:20:46,680 Speaker 1: a great starting point and for some people that's enough, 470 00:20:46,800 --> 00:20:48,440 Speaker 1: that's enough for them to hit their goals. For others 471 00:20:48,520 --> 00:20:50,440 Speaker 1: it's not. And what I mean by that is, you know, 472 00:20:50,480 --> 00:20:52,840 Speaker 1: if you want to retire at fifty five with a 473 00:20:52,880 --> 00:20:55,080 Speaker 1: certain income and lifestyle, you might need to save more 474 00:20:55,119 --> 00:20:58,480 Speaker 1: than someone that wants to retire at sixty income and lifestyle, 475 00:20:58,840 --> 00:21:00,680 Speaker 1: and so it really kind of depends on where you're 476 00:21:00,760 --> 00:21:04,000 Speaker 1: at financially. Um. But that's another good, good one to 477 00:21:04,000 --> 00:21:06,199 Speaker 1: put on the list. So is that kind of figuring out, 478 00:21:06,359 --> 00:21:08,640 Speaker 1: you know, what you would want to make in the future. 479 00:21:08,880 --> 00:21:11,879 Speaker 1: And this is like when you retired, figuring out maybe 480 00:21:11,920 --> 00:21:13,919 Speaker 1: what you need your income to be, and then you 481 00:21:13,960 --> 00:21:16,959 Speaker 1: start operating from that number, like that's how much you're 482 00:21:16,960 --> 00:21:19,720 Speaker 1: gonna need to say, okay, with the start with the 483 00:21:19,800 --> 00:21:21,840 Speaker 1: end in mind, and it seems silly to do, you know, 484 00:21:21,840 --> 00:21:24,439 Speaker 1: when you're thirty to thirty five years. Yeah, but you 485 00:21:24,480 --> 00:21:27,359 Speaker 1: know you you need to say, hey, listen, ideally and realistically, 486 00:21:27,560 --> 00:21:29,600 Speaker 1: i'd like to have the ability not to have to work. 487 00:21:29,680 --> 00:21:32,640 Speaker 1: Let's say by age sixty five, and let's say you're thirty, 488 00:21:32,680 --> 00:21:34,879 Speaker 1: so that gives me thirty five year time horizon. Okay, 489 00:21:35,080 --> 00:21:37,560 Speaker 1: Then what kind of income do I think I want retirement. 490 00:21:37,680 --> 00:21:39,960 Speaker 1: Let's say for you, it's I want seventy five thousand 491 00:21:40,000 --> 00:21:42,439 Speaker 1: dollars a year of encing a retirement. Okay, and so 492 00:21:42,480 --> 00:21:44,320 Speaker 1: that's number two. And then the last thing that we 493 00:21:44,359 --> 00:21:47,639 Speaker 1: need to figure out is what positive rate of return 494 00:21:47,680 --> 00:21:49,280 Speaker 1: do we want to assume that we'll get for the 495 00:21:49,280 --> 00:21:51,560 Speaker 1: next thirty five years. And then once we have those 496 00:21:51,600 --> 00:21:53,879 Speaker 1: three assumptions when we want to retire, how much income 497 00:21:53,920 --> 00:21:56,080 Speaker 1: we think we want, and what positive rate of return 498 00:21:56,160 --> 00:21:58,480 Speaker 1: we think we'll get on average over that thirty five years, 499 00:21:58,720 --> 00:22:00,399 Speaker 1: then we can determine how much we need to be 500 00:22:00,400 --> 00:22:03,840 Speaker 1: saving per months. Okay, what can you explain positive rate 501 00:22:03,880 --> 00:22:07,040 Speaker 1: of return? Yeah? Yeah, so if you put you know, 502 00:22:07,400 --> 00:22:09,359 Speaker 1: if let's say you wanted seventy five thousand dollars a 503 00:22:09,480 --> 00:22:13,440 Speaker 1: year income in retirement at and you just literally put 504 00:22:13,440 --> 00:22:16,200 Speaker 1: it in an account or under your mattress and got 505 00:22:16,240 --> 00:22:19,240 Speaker 1: a zero percent rate of return because it just sat there. Well, 506 00:22:19,280 --> 00:22:21,160 Speaker 1: you would need to save a lot more than someone 507 00:22:21,160 --> 00:22:23,639 Speaker 1: else that got a four percent or five percent or 508 00:22:23,640 --> 00:22:26,040 Speaker 1: seven percent or or you know, whatever interest rate you 509 00:22:26,080 --> 00:22:27,520 Speaker 1: want to assume or rate of return you want to 510 00:22:27,560 --> 00:22:30,240 Speaker 1: assume on that money. So the higher the rate of return, 511 00:22:30,400 --> 00:22:32,560 Speaker 1: the less you need to save. But the lower the 512 00:22:32,600 --> 00:22:34,520 Speaker 1: rate of return, the more you need to save. And 513 00:22:34,560 --> 00:22:36,240 Speaker 1: so it really comes down to a lot of things 514 00:22:36,280 --> 00:22:38,960 Speaker 1: like what is your risk tolerance, what is your time horizon, 515 00:22:39,000 --> 00:22:42,040 Speaker 1: and all these other things that every single person is different. 516 00:22:42,080 --> 00:22:46,359 Speaker 1: One okay, okay, um A few other things in your 517 00:22:46,400 --> 00:22:48,840 Speaker 1: thirties is you know, set goal, set priorities, really learn 518 00:22:48,920 --> 00:22:51,639 Speaker 1: how to start thinking ahead in your twenties, it's just 519 00:22:51,680 --> 00:22:54,800 Speaker 1: about living now. We do have some people that are 520 00:22:54,840 --> 00:22:56,640 Speaker 1: in their twenties that are very responsible and thinking about 521 00:22:56,640 --> 00:22:58,200 Speaker 1: these things ahead of time, but for the most part, 522 00:22:58,240 --> 00:23:00,280 Speaker 1: when people get into thirties, that's when they start saying, Okay, 523 00:23:00,280 --> 00:23:02,560 Speaker 1: I need to start making these financial decisions. What do 524 00:23:02,600 --> 00:23:04,600 Speaker 1: I really want in life. You know a lot of 525 00:23:04,640 --> 00:23:08,240 Speaker 1: people We find some people get fulfillment from their jobs, 526 00:23:08,240 --> 00:23:09,919 Speaker 1: but a lot of people are out there working just 527 00:23:09,960 --> 00:23:11,560 Speaker 1: because they know, Hey, this is a job that I'm 528 00:23:11,600 --> 00:23:13,639 Speaker 1: good at and it provides the lifestyle one, but I'm 529 00:23:13,680 --> 00:23:15,560 Speaker 1: not really passionate about it. So i want to save 530 00:23:15,560 --> 00:23:17,920 Speaker 1: as much as I can and produce income other places. 531 00:23:18,119 --> 00:23:20,400 Speaker 1: That way, I can leave this job. Okay, and that's fine, 532 00:23:20,520 --> 00:23:22,320 Speaker 1: nothing matter with that. But you've just got to know 533 00:23:22,359 --> 00:23:25,240 Speaker 1: what what you want long terms, and then begin understanding 534 00:23:25,240 --> 00:23:27,760 Speaker 1: your investments. It's amazing at how many people you know 535 00:23:27,800 --> 00:23:30,760 Speaker 1: trust a financial advisor or planner or c p A 536 00:23:30,920 --> 00:23:33,040 Speaker 1: or a co worker and they hear, hey, a four 537 00:23:33,080 --> 00:23:34,600 Speaker 1: own k or an IRA is a good thing to 538 00:23:34,600 --> 00:23:37,280 Speaker 1: save money into, but they really don't understand it well. 539 00:23:37,320 --> 00:23:39,359 Speaker 1: In your thirties is a good time to start really 540 00:23:39,359 --> 00:23:42,640 Speaker 1: increasing your financial knowledge. You still have time to put 541 00:23:42,680 --> 00:23:44,879 Speaker 1: money in the right places, um, and you need to 542 00:23:44,920 --> 00:23:48,040 Speaker 1: have ownership of how you're saving and where you're saving. 543 00:23:48,280 --> 00:23:49,720 Speaker 1: You know, it's good to trust people, but you don't 544 00:23:49,720 --> 00:23:52,320 Speaker 1: want to trust to finally because ultimately it's not their 545 00:23:52,359 --> 00:23:55,280 Speaker 1: long term success. Um. You know, it's it's your long 546 00:23:55,359 --> 00:23:56,800 Speaker 1: term success. And so you want to make sure that 547 00:23:56,840 --> 00:23:59,240 Speaker 1: you've got a good understanding there. I've never thought about that. 548 00:23:59,240 --> 00:24:01,240 Speaker 1: That's a really good point because I just think like, 549 00:24:01,520 --> 00:24:03,120 Speaker 1: I don't know about this. I'm just going to get 550 00:24:03,160 --> 00:24:05,200 Speaker 1: someone to help me do it. But I don't really 551 00:24:05,400 --> 00:24:07,480 Speaker 1: try to grasp what they're doing. I'm just like, yeah, 552 00:24:07,520 --> 00:24:09,960 Speaker 1: sure you got it. That sounds good. That sounds good. 553 00:24:10,040 --> 00:24:12,240 Speaker 1: So that's a great point to just try to understand, 554 00:24:12,640 --> 00:24:18,159 Speaker 1: especially with your money. I mean, that's a very personal thing. Okay, 555 00:24:18,600 --> 00:24:20,239 Speaker 1: and that was the last our second to the last thing, 556 00:24:20,240 --> 00:24:21,679 Speaker 1: and the last thing in your thirties and same thing 557 00:24:21,680 --> 00:24:24,320 Speaker 1: in your forties. Continue to assess your insurances. It's amazing 558 00:24:24,320 --> 00:24:26,879 Speaker 1: how many people we see by you know, a thirty 559 00:24:26,920 --> 00:24:29,080 Speaker 1: year term. Uh, you know, when they get married and 560 00:24:29,119 --> 00:24:30,679 Speaker 1: then they never reassess it, and then they have two 561 00:24:30,800 --> 00:24:33,080 Speaker 1: or three kids, they house, they have all these other 562 00:24:33,440 --> 00:24:35,720 Speaker 1: you know needs. So the insurance is something you should 563 00:24:35,760 --> 00:24:38,760 Speaker 1: always be assessing to make sure it's increased or decreased 564 00:24:38,800 --> 00:24:41,240 Speaker 1: based upon your current needs. Okay, that's a great tip. 565 00:24:42,040 --> 00:24:46,199 Speaker 1: What about the forties? The forties, So the forties is 566 00:24:46,600 --> 00:24:48,680 Speaker 1: like I mentioned, um, you know a few minutes ago, 567 00:24:48,840 --> 00:24:51,000 Speaker 1: is you should really be hitting on all cylinders. In 568 00:24:51,000 --> 00:24:53,800 Speaker 1: your forties, that's when you should be hopefully saying that 569 00:24:54,920 --> 00:24:57,760 Speaker 1: at a minimum, towards retirement. Okay, so you really need 570 00:24:57,760 --> 00:25:00,679 Speaker 1: to make sure you're working towards that. UM. One of 571 00:25:00,680 --> 00:25:02,199 Speaker 1: the things that we see a lot of people do 572 00:25:02,320 --> 00:25:04,480 Speaker 1: in their late thirties and then it creeps into their 573 00:25:04,480 --> 00:25:07,160 Speaker 1: forties is you know, they hopefully are making more money 574 00:25:07,200 --> 00:25:09,359 Speaker 1: than they've ever made and maybe there's a little bit 575 00:25:09,359 --> 00:25:12,080 Speaker 1: more discretionary income. And so they've got a house and 576 00:25:12,119 --> 00:25:13,760 Speaker 1: they start thinking about all the things they want to 577 00:25:13,760 --> 00:25:16,199 Speaker 1: do to that house. Okay. And so renovations are a 578 00:25:16,240 --> 00:25:18,280 Speaker 1: big thing that we talked with our clients about of 579 00:25:18,840 --> 00:25:20,720 Speaker 1: they can get out of control. And that is someone 580 00:25:20,760 --> 00:25:23,320 Speaker 1: who has gone through renovations on a house and it 581 00:25:23,359 --> 00:25:26,080 Speaker 1: has gotten out of control. Okay, So I'm I'm preaching 582 00:25:26,080 --> 00:25:28,919 Speaker 1: to the choir, But renovations can be fun because what 583 00:25:28,960 --> 00:25:31,160 Speaker 1: most people are faced with in their late thirties or 584 00:25:31,680 --> 00:25:34,600 Speaker 1: early forties is maybe my family is growing, so I 585 00:25:34,600 --> 00:25:36,680 Speaker 1: can either a go buy a bigger house or be 586 00:25:36,920 --> 00:25:40,439 Speaker 1: make some you know, customization you know, or changes to 587 00:25:40,480 --> 00:25:44,040 Speaker 1: my current living situation. And so if you start doing that, 588 00:25:44,760 --> 00:25:46,440 Speaker 1: you know, it's really good to talk with other people 589 00:25:46,440 --> 00:25:49,199 Speaker 1: that have gone through that process, you know, interview you know, 590 00:25:49,280 --> 00:25:52,360 Speaker 1: other builders and those types of things and understand that, hey, 591 00:25:52,480 --> 00:25:56,000 Speaker 1: if you know your max you know, uh, spend on 592 00:25:56,040 --> 00:25:58,960 Speaker 1: a renovation is is you know, let's say fifty grant, 593 00:25:59,040 --> 00:26:01,480 Speaker 1: that's how hypothetical. Well you might need to budget to 594 00:26:01,560 --> 00:26:04,280 Speaker 1: only spend thirty five to forty knowing that you'll probably 595 00:26:04,280 --> 00:26:06,119 Speaker 1: go over it because there's some changes that you'll make 596 00:26:06,160 --> 00:26:08,439 Speaker 1: along the way, and so just thinking through those things 597 00:26:08,480 --> 00:26:11,680 Speaker 1: and also making sure that those improvements are improvements that 598 00:26:11,680 --> 00:26:13,320 Speaker 1: are ultimately going to help the value of the house. 599 00:26:13,440 --> 00:26:15,879 Speaker 1: You know, you might want a water slide in the 600 00:26:15,880 --> 00:26:18,480 Speaker 1: back of your house, which sounds fun, but you know, 601 00:26:18,640 --> 00:26:21,080 Speaker 1: is that going to be something that the next person 602 00:26:21,119 --> 00:26:22,840 Speaker 1: that purchases your home is going to care about? And 603 00:26:22,880 --> 00:26:25,679 Speaker 1: are you going to see your return on your investments? Right? So, 604 00:26:25,720 --> 00:26:27,840 Speaker 1: do you see a lot of people just really going 605 00:26:27,920 --> 00:26:31,639 Speaker 1: kind of overboard in these home renovations. I do. I do. 606 00:26:31,760 --> 00:26:33,879 Speaker 1: And you know what, if you've got the discretionary income 607 00:26:34,160 --> 00:26:36,280 Speaker 1: and it's something that's just important to you and you're 608 00:26:36,280 --> 00:26:38,439 Speaker 1: going to be in that house for the foreseeable future, 609 00:26:38,600 --> 00:26:40,240 Speaker 1: it's okay to spend that money, but you just have 610 00:26:40,280 --> 00:26:43,360 Speaker 1: to understand it that, hey, if this is something where 611 00:26:43,359 --> 00:26:44,760 Speaker 1: I gotta get my money out of this when I 612 00:26:44,800 --> 00:26:46,720 Speaker 1: go to sell it whenever that is, it would be 613 00:26:46,800 --> 00:26:48,520 Speaker 1: very very careful to budget. If it's something you say, 614 00:26:48,520 --> 00:26:50,760 Speaker 1: I'm gonna live in this house for the next fifteen 615 00:26:50,840 --> 00:26:53,440 Speaker 1: years twenty years, and I can spend a little bit 616 00:26:53,440 --> 00:26:55,320 Speaker 1: more knowing that this is more of like a lifestyle 617 00:26:55,359 --> 00:26:56,920 Speaker 1: thing for me that I just want to be comfortable with. 618 00:26:57,240 --> 00:26:59,080 Speaker 1: And that's fine too, but just be aware of those 619 00:26:59,080 --> 00:27:01,119 Speaker 1: things on the front. Ended will blindly go in thinking 620 00:27:01,320 --> 00:27:03,160 Speaker 1: every dollar you spend you're gonna be able to get 621 00:27:03,160 --> 00:27:08,159 Speaker 1: back out. Well, actually, that's funny. When I bought my house, 622 00:27:08,359 --> 00:27:11,640 Speaker 1: the seller was so frustrated because he was like, I've 623 00:27:11,680 --> 00:27:14,720 Speaker 1: put in so much money into this, these floors and this, 624 00:27:14,800 --> 00:27:16,919 Speaker 1: you know, all the stuff, and none of that stuff. 625 00:27:16,960 --> 00:27:19,520 Speaker 1: Actually the stuff that he did that he chose to 626 00:27:19,560 --> 00:27:23,359 Speaker 1: do renovation wise, really added to the value of the house. 627 00:27:23,600 --> 00:27:25,760 Speaker 1: Although he had put in a lot of money, and 628 00:27:25,800 --> 00:27:29,199 Speaker 1: of course I appreciate it didn't make the costs go up, 629 00:27:29,240 --> 00:27:31,440 Speaker 1: and so he was very very frustrated about that, which 630 00:27:31,440 --> 00:27:34,480 Speaker 1: was such a learning lesson for me. After moving in 631 00:27:34,520 --> 00:27:37,199 Speaker 1: to be like, Okay, where do I actually want to 632 00:27:37,200 --> 00:27:39,879 Speaker 1: spend my money? You got it? And and they and 633 00:27:39,960 --> 00:27:41,919 Speaker 1: I am not an expert in real state, will never 634 00:27:41,960 --> 00:27:43,320 Speaker 1: professed to be, but they say, you know, the things 635 00:27:43,320 --> 00:27:46,879 Speaker 1: that are important to most people are kitchens, bathrooms, you know, 636 00:27:46,920 --> 00:27:49,760 Speaker 1: those types of things. And so that's why, you know, 637 00:27:50,080 --> 00:27:52,120 Speaker 1: it's a lot of people get frustrated when they put 638 00:27:52,119 --> 00:27:53,760 Speaker 1: in pools, and a lot of people put in pools 639 00:27:53,840 --> 00:27:56,320 Speaker 1: during the pandemic just because you know, you can't go 640 00:27:56,320 --> 00:27:58,320 Speaker 1: go out and go to the places that you used to. 641 00:27:58,840 --> 00:28:01,200 Speaker 1: But you know, it can be restauranting with a pool cost, 642 00:28:01,320 --> 00:28:03,720 Speaker 1: you know, let's say sixty grand, and it might only 643 00:28:03,920 --> 00:28:06,359 Speaker 1: increase the value your home, you know, a fraction of 644 00:28:06,400 --> 00:28:09,440 Speaker 1: that um and so those types of but maybe that's 645 00:28:09,480 --> 00:28:11,000 Speaker 1: important for you and your family to be able to 646 00:28:11,040 --> 00:28:13,840 Speaker 1: have that oasis to go to. So again, you know, 647 00:28:13,880 --> 00:28:15,840 Speaker 1: it just kind of comes down to what's important to 648 00:28:15,840 --> 00:28:20,160 Speaker 1: you and are your expectations good on the front end. Um, 649 00:28:20,280 --> 00:28:22,280 Speaker 1: we would ultimately like for you to start saving for 650 00:28:22,320 --> 00:28:25,000 Speaker 1: your kids college in your thirties, but we find a 651 00:28:25,000 --> 00:28:27,520 Speaker 1: lot of people are just trying to get their retirement 652 00:28:27,520 --> 00:28:29,400 Speaker 1: savings up to where they needs to be and then 653 00:28:29,480 --> 00:28:33,040 Speaker 1: typically college comes after that. The reason that we recommend, 654 00:28:33,200 --> 00:28:35,280 Speaker 1: you know, trying to get close to that retirement savings 655 00:28:35,320 --> 00:28:38,120 Speaker 1: goal before you start really socking money away for kids 656 00:28:38,200 --> 00:28:42,400 Speaker 1: education is because worst case scenario, let's say you just 657 00:28:42,440 --> 00:28:43,960 Speaker 1: don't ever get to where you can save money for 658 00:28:44,000 --> 00:28:47,200 Speaker 1: your kids education. Well, I don't like it, but we 659 00:28:47,240 --> 00:28:50,080 Speaker 1: can borrow money for kids education if we have Okay, 660 00:28:50,320 --> 00:28:52,920 Speaker 1: not ideal, but we can't do that, whereas I can't 661 00:28:52,920 --> 00:28:55,040 Speaker 1: borrow money for your for your retirement. So you know, 662 00:28:55,080 --> 00:28:57,520 Speaker 1: we get the age sixty five and you no longer 663 00:28:57,560 --> 00:28:59,800 Speaker 1: want to work or can work, and we can't just 664 00:28:59,800 --> 00:29:01,720 Speaker 1: go to the bank and say, hey, we haven't saved 665 00:29:01,720 --> 00:29:03,880 Speaker 1: like we needed to, you know, to be able to retire. 666 00:29:03,960 --> 00:29:06,840 Speaker 1: Could I borrow a million dollars to doesn't doesn't work 667 00:29:06,880 --> 00:29:09,080 Speaker 1: like that. So, uh, you know, we've got a little 668 00:29:09,080 --> 00:29:11,200 Speaker 1: more flexibility in the education than we do the retirement planning. 669 00:29:11,240 --> 00:29:13,080 Speaker 1: So that's why I like to put that first. But 670 00:29:13,160 --> 00:29:15,960 Speaker 1: then going along with that college education planning is I 671 00:29:15,960 --> 00:29:18,560 Speaker 1: think it's very important to start talking to your kids 672 00:29:18,760 --> 00:29:21,200 Speaker 1: about how to handle money. Uh, you know, you now 673 00:29:21,280 --> 00:29:23,720 Speaker 1: have some life experience so you can say, hey, these 674 00:29:23,720 --> 00:29:25,959 Speaker 1: are stupid decisions we made in our twenties or thirties, 675 00:29:26,840 --> 00:29:28,680 Speaker 1: or these are things our parents didn't teach us and 676 00:29:28,720 --> 00:29:30,440 Speaker 1: we really want you to to think about. I think 677 00:29:30,440 --> 00:29:34,440 Speaker 1: a lot of people don't teach their kids about financial 678 00:29:34,440 --> 00:29:37,800 Speaker 1: principles because they don't feel like they know enough. Listen, 679 00:29:38,120 --> 00:29:40,760 Speaker 1: your kids have no concept, you know, if you teach 680 00:29:40,800 --> 00:29:43,840 Speaker 1: some nothing else to set money aside for you know, 681 00:29:44,040 --> 00:29:47,880 Speaker 1: taxes and tieth every month for example, or charitable giving. 682 00:29:48,240 --> 00:29:50,400 Speaker 1: Uh that's more than most kids are getting, or you know, 683 00:29:50,520 --> 00:29:52,840 Speaker 1: breaking money up into different jars that they can physically 684 00:29:52,880 --> 00:29:55,800 Speaker 1: see the money accumulating and growing up in those jars, 685 00:29:56,600 --> 00:29:58,600 Speaker 1: or how to save up for that bicycle they want, 686 00:29:58,720 --> 00:30:00,800 Speaker 1: or how to save up for that first car. Those 687 00:30:00,840 --> 00:30:02,280 Speaker 1: things will go such a long way, and you're just 688 00:30:02,320 --> 00:30:04,360 Speaker 1: giving them some kind of foundation. It doesn't mean that 689 00:30:04,400 --> 00:30:07,160 Speaker 1: you have to educate them on the internal expenses of 690 00:30:07,160 --> 00:30:10,160 Speaker 1: a mutual fund. That's not worth talked about. Just the 691 00:30:10,200 --> 00:30:12,600 Speaker 1: basic principles I think will go a long way for 692 00:30:12,680 --> 00:30:14,120 Speaker 1: you and for them, and it kind of gives you 693 00:30:14,160 --> 00:30:16,440 Speaker 1: something to bond around. Yeah, it's so true because I 694 00:30:16,480 --> 00:30:18,720 Speaker 1: never thought about this growing up. But my parents were 695 00:30:18,720 --> 00:30:21,000 Speaker 1: a very big one. You know, never carrying over credit 696 00:30:21,040 --> 00:30:23,479 Speaker 1: card debt, and that was because of some mistakes they 697 00:30:23,480 --> 00:30:26,080 Speaker 1: had made in their twenties as well. And so they 698 00:30:26,120 --> 00:30:28,320 Speaker 1: just sort of beat certain things into my head that 699 00:30:28,360 --> 00:30:31,720 Speaker 1: I didn't even realize we're you know, staying there ultimately 700 00:30:31,800 --> 00:30:33,880 Speaker 1: until later in my life when I just like new 701 00:30:33,920 --> 00:30:36,920 Speaker 1: to do certain things or a new Okay, I need 702 00:30:36,960 --> 00:30:39,280 Speaker 1: to pay this off or I need to not over 703 00:30:39,320 --> 00:30:41,959 Speaker 1: extend here, you know. And it's just like it's just 704 00:30:42,000 --> 00:30:44,040 Speaker 1: the knowledge that as a kid, you're right, you have 705 00:30:44,080 --> 00:30:47,000 Speaker 1: no idea, So you might as well start programming, programming 706 00:30:47,000 --> 00:30:49,760 Speaker 1: them into the positive places of this stuff. You've got 707 00:30:49,760 --> 00:30:51,680 Speaker 1: it well. And and the last thing kind of on 708 00:30:51,720 --> 00:30:54,000 Speaker 1: that is, you know, don't people that get in their 709 00:30:54,040 --> 00:30:55,800 Speaker 1: late forties, if they had kids early, you know, they're 710 00:30:55,800 --> 00:30:57,920 Speaker 1: starting to get in to those college years and maybe 711 00:30:57,920 --> 00:31:01,080 Speaker 1: even wedding years depending on the situation. Typically comes more 712 00:31:01,080 --> 00:31:04,120 Speaker 1: in the fifties. But um, you know, don't raise your 713 00:31:04,120 --> 00:31:07,000 Speaker 1: retirement accounts to pay for your kids college or to 714 00:31:07,040 --> 00:31:10,840 Speaker 1: pay for um weddings. We see that, We see that 715 00:31:10,880 --> 00:31:12,520 Speaker 1: a lot. And the reason being again is you know, 716 00:31:12,600 --> 00:31:15,000 Speaker 1: this is money for retirement. You know, if you're going 717 00:31:15,080 --> 00:31:17,560 Speaker 1: to pay for your kid's wedding or if you're going 718 00:31:17,640 --> 00:31:20,160 Speaker 1: to you know, help them out with college that needs 719 00:31:20,200 --> 00:31:22,800 Speaker 1: to be from separate funds. Okay, And so we see 720 00:31:22,800 --> 00:31:24,320 Speaker 1: a lot of people that that kind of raided their 721 00:31:24,360 --> 00:31:26,800 Speaker 1: four own case or I raised to do that. Um, 722 00:31:26,840 --> 00:31:28,760 Speaker 1: so we'd love love to see them avoid that. So 723 00:31:28,960 --> 00:31:33,720 Speaker 1: but enough enough on the kids stuff. Um. You know 724 00:31:33,840 --> 00:31:36,640 Speaker 1: something else that we see is when you're in your forties. Um, 725 00:31:36,680 --> 00:31:39,080 Speaker 1: you know, you have hopefully now started to accumulate some money, 726 00:31:39,200 --> 00:31:42,040 Speaker 1: you know, hopefully in retirement accounts or in other various 727 00:31:42,040 --> 00:31:45,000 Speaker 1: investment accounts. And so this is the first one where 728 00:31:45,680 --> 00:31:47,480 Speaker 1: you really need to make sure that you're careful to 729 00:31:47,560 --> 00:31:51,640 Speaker 1: not panic sell when you see your first big market correction. Now, 730 00:31:51,680 --> 00:31:55,200 Speaker 1: what market correction is, you know, the market dips by 731 00:31:55,200 --> 00:31:58,800 Speaker 1: a significant amount. You know, earlier this year we saw 732 00:32:00,000 --> 00:32:02,440 Speaker 1: a dip you know, during the beginning of the pandemic. 733 00:32:02,880 --> 00:32:05,400 Speaker 1: And so you know, when when you're in your twenties 734 00:32:05,480 --> 00:32:06,920 Speaker 1: or when you're in your low thirties, and and all 735 00:32:06,960 --> 00:32:09,440 Speaker 1: you've got is, you know, five thousand dollars to your name. 736 00:32:09,680 --> 00:32:11,360 Speaker 1: What doesn't really matter what the market does, So it's 737 00:32:11,360 --> 00:32:13,600 Speaker 1: not that big a deal, but hopefully you've been responsible 738 00:32:13,600 --> 00:32:15,200 Speaker 1: in saving money. And so when you see that four 739 00:32:15,240 --> 00:32:17,600 Speaker 1: own k, which the balance is starting to look really good, 740 00:32:17,840 --> 00:32:20,840 Speaker 1: and then it drops by significant amount, it's very easy 741 00:32:20,840 --> 00:32:23,120 Speaker 1: to say, I don't like this, this doesn't feel right. 742 00:32:23,160 --> 00:32:25,280 Speaker 1: That's my hard dred money. And then you know, you 743 00:32:25,360 --> 00:32:27,960 Speaker 1: sell low when you had been buying high, which we 744 00:32:28,000 --> 00:32:30,360 Speaker 1: want to flip that. We want to look at, Hey, 745 00:32:30,440 --> 00:32:34,200 Speaker 1: the markets down, these are opportunities that we could buy low. Uh, 746 00:32:34,240 --> 00:32:35,960 Speaker 1: you know initially then we were you know, a few 747 00:32:36,000 --> 00:32:38,400 Speaker 1: months back, and then when we get to retirement, you know, 748 00:32:38,520 --> 00:32:41,600 Speaker 1: the market is hopefully up significantly more. And so by low, 749 00:32:42,000 --> 00:32:45,840 Speaker 1: sell high, don't high, don't flip it around, okay, and 750 00:32:45,880 --> 00:32:51,040 Speaker 1: don't panic, don't panic, don't panic. There's all these stats 751 00:32:51,040 --> 00:32:52,520 Speaker 1: and we can't really do it today, but there's all 752 00:32:52,560 --> 00:32:55,440 Speaker 1: these stats that show, you know, long term investors will win. 753 00:32:55,680 --> 00:32:57,840 Speaker 1: We just have to make sure that we're disciplined or 754 00:32:57,920 --> 00:33:03,040 Speaker 1: methodical in our thought process. Yep. So it's a lot. 755 00:33:03,040 --> 00:33:05,240 Speaker 1: It's amounting. Yeah, that well, that one's like tricky to 756 00:33:05,280 --> 00:33:07,240 Speaker 1: me because I mean, if you're watching numbers, I can 757 00:33:07,320 --> 00:33:09,320 Speaker 1: imagine that you're just like, oh my gosh, my gosh, 758 00:33:09,320 --> 00:33:12,640 Speaker 1: my gosh. But yeah, you gotta just ride it out. Okay, 759 00:33:12,720 --> 00:33:14,920 Speaker 1: you got it, you got it. One of the one 760 00:33:14,920 --> 00:33:16,760 Speaker 1: of the last few things you know that that we 761 00:33:16,760 --> 00:33:19,160 Speaker 1: look at we talked about, um, you know, making sure 762 00:33:19,200 --> 00:33:21,600 Speaker 1: you're you're hitting on all cylinders when it comes to 763 00:33:21,840 --> 00:33:24,760 Speaker 1: saving poor retirement. But just to give you an example, okay, 764 00:33:24,880 --> 00:33:27,480 Speaker 1: let's say we took someone that was forty years old. Okay, so, 765 00:33:27,520 --> 00:33:29,800 Speaker 1: and let's say they wanted to retire at age sixty five. 766 00:33:30,440 --> 00:33:33,440 Speaker 1: Let's say they started saving a thousand bucks a month, Okay, 767 00:33:33,480 --> 00:33:35,240 Speaker 1: which might seem a lot to some, it might seem 768 00:33:35,440 --> 00:33:37,280 Speaker 1: like pennies to others. But let's just say a thousand 769 00:33:37,320 --> 00:33:39,480 Speaker 1: bucks a month is what they started saving. And let's 770 00:33:39,520 --> 00:33:41,960 Speaker 1: assume they got a seven percent rate of return for 771 00:33:42,040 --> 00:33:44,800 Speaker 1: twenty five years. They would have seven hundred and fifty 772 00:33:44,800 --> 00:33:47,440 Speaker 1: eight thousand dollars in an account by the time they 773 00:33:47,440 --> 00:33:50,640 Speaker 1: were sixty five years old. Okay. Now, let's say that 774 00:33:50,760 --> 00:33:53,520 Speaker 1: same person pushed themselves a little bit. Let's say they said, 775 00:33:53,520 --> 00:33:55,800 Speaker 1: you know what, I'm going to try to save dollars 776 00:33:55,840 --> 00:33:57,440 Speaker 1: a month instead of a thousand and so that was 777 00:33:57,520 --> 00:34:00,120 Speaker 1: eighteen thousand years. But they're saving and we assume the 778 00:34:00,160 --> 00:34:02,760 Speaker 1: same numbers seven percent rate of return for twenty five years, 779 00:34:03,080 --> 00:34:06,440 Speaker 1: they would have one point or one million, one thirty 780 00:34:06,480 --> 00:34:09,560 Speaker 1: eight thousand dollars. So it's a three hundred eighty thousand 781 00:34:09,560 --> 00:34:13,040 Speaker 1: dollar difference just by saving an extra bucks ass And 782 00:34:13,120 --> 00:34:14,960 Speaker 1: so you know, those are the types of things that 783 00:34:15,000 --> 00:34:16,440 Speaker 1: I like to just put out there to people and 784 00:34:16,440 --> 00:34:18,880 Speaker 1: just say, hey, listen, pushing yourself maybe you know, trying 785 00:34:18,920 --> 00:34:20,400 Speaker 1: not to eat out as much to where you can 786 00:34:20,440 --> 00:34:22,279 Speaker 1: save an extra hundred bucks, two hundred bucks or five 787 00:34:22,320 --> 00:34:25,200 Speaker 1: hundred bucks or whatever your number is. Um really makes 788 00:34:25,200 --> 00:34:28,600 Speaker 1: a long difference long term with compounding interest and you know, uh, 789 00:34:28,960 --> 00:34:32,080 Speaker 1: varying rates of return. So um, those little things make 790 00:34:32,080 --> 00:34:34,600 Speaker 1: a difference. It doesn't seem like a lot now, but 791 00:34:34,719 --> 00:34:37,520 Speaker 1: remember every if you think about it like a levee, 792 00:34:37,600 --> 00:34:39,160 Speaker 1: you know, you spend a little bit more money on 793 00:34:39,160 --> 00:34:40,840 Speaker 1: one side, and it takes away from something else on 794 00:34:40,880 --> 00:34:42,480 Speaker 1: the other side. And so you just have to be 795 00:34:42,480 --> 00:34:45,480 Speaker 1: comfortable with where your money is going. Okay, and do 796 00:34:45,560 --> 00:34:47,799 Speaker 1: you um, Oh, I just lost my turn of thought 797 00:34:47,840 --> 00:34:49,759 Speaker 1: and I had a really good question. Oh, I was 798 00:34:49,800 --> 00:34:52,640 Speaker 1: gonna say, you know, there's a lot this year with 799 00:34:53,360 --> 00:34:56,520 Speaker 1: obviously like everything has changed for most of us. I 800 00:34:56,560 --> 00:34:59,759 Speaker 1: think financially being one of the big aspects of that. 801 00:34:59,800 --> 00:35:02,920 Speaker 1: So do you have like an overall recommendation just in 802 00:35:03,080 --> 00:35:07,200 Speaker 1: general as far as like what to do in down 803 00:35:07,280 --> 00:35:10,400 Speaker 1: years like this? Yeah, I mean it's really good to 804 00:35:10,480 --> 00:35:13,760 Speaker 1: kind of uh you mentioned earlier, to reflect on the budget. 805 00:35:13,800 --> 00:35:16,040 Speaker 1: That's the first one that's just good to do, just 806 00:35:16,400 --> 00:35:18,280 Speaker 1: you know, go back and look, Okay, are there anything 807 00:35:18,320 --> 00:35:20,239 Speaker 1: that I can cut that I just don't need? I 808 00:35:20,239 --> 00:35:22,080 Speaker 1: think a lot of people now are. We're so far 809 00:35:22,120 --> 00:35:25,640 Speaker 1: into the pandemic to where you know, the initial shock 810 00:35:25,880 --> 00:35:28,720 Speaker 1: is and we're all kind of like in this weird 811 00:35:28,880 --> 00:35:32,319 Speaker 1: new normal. Um. And so you know, number one, look 812 00:35:32,320 --> 00:35:34,480 Speaker 1: at the budget. Number two, it's a great time to 813 00:35:34,560 --> 00:35:37,440 Speaker 1: review your your long term plans and investments and all 814 00:35:37,440 --> 00:35:39,360 Speaker 1: that kind of stuff. Go do I like where my 815 00:35:39,400 --> 00:35:41,799 Speaker 1: money is going? Am I happy with the returns? And 816 00:35:41,840 --> 00:35:44,680 Speaker 1: I have all these things? Are good to review? Um? 817 00:35:44,800 --> 00:35:47,239 Speaker 1: And then looking forward to next year, I'm trying to 818 00:35:47,239 --> 00:35:49,600 Speaker 1: be as optimistic as I can going, Hey, you know 819 00:35:50,440 --> 00:35:55,759 Speaker 1: one is as stinky as twenty, as bad as it's been. Uh, 820 00:35:56,640 --> 00:35:58,440 Speaker 1: is gonna be awesome. It's going to be awesome. I 821 00:35:58,480 --> 00:36:01,000 Speaker 1: don't know how. I don't know what could uh and 822 00:36:01,000 --> 00:36:02,880 Speaker 1: there's gonna be things that don't go courting plan and 823 00:36:02,880 --> 00:36:05,200 Speaker 1: things that that do. Um, but I also try to 824 00:36:05,200 --> 00:36:06,920 Speaker 1: look back and me and we've been so fortunate, you know, 825 00:36:06,960 --> 00:36:09,960 Speaker 1: outside of uh, you know, the last ten years or 826 00:36:09,960 --> 00:36:13,600 Speaker 1: so have been so great to have financially, market wise, uh, 827 00:36:13,680 --> 00:36:16,880 Speaker 1: the economy, everything's just been so good. So let's be 828 00:36:16,920 --> 00:36:19,560 Speaker 1: thankful for what we've been blessed with thus far. Let's 829 00:36:19,600 --> 00:36:22,799 Speaker 1: look for opportunities going forward, and then let's always make 830 00:36:22,840 --> 00:36:24,840 Speaker 1: sure we're kind of, you know, managing every aspect of 831 00:36:24,880 --> 00:36:26,880 Speaker 1: our finances to get the best long term results that 832 00:36:26,920 --> 00:36:30,920 Speaker 1: we can. Okay, I love that. Anything else for our forties, 833 00:36:31,880 --> 00:36:33,600 Speaker 1: I think that's it for the fortis just kind of 834 00:36:33,640 --> 00:36:35,319 Speaker 1: some high level stuff. Again, this is not an all 835 00:36:35,400 --> 00:36:38,040 Speaker 1: encompassing list, nor is it you know, the Bible when 836 00:36:38,040 --> 00:36:40,120 Speaker 1: it comes to to financial planning. But these are just 837 00:36:40,160 --> 00:36:42,440 Speaker 1: some things that we typically see for people in their twenties, thirties, 838 00:36:42,440 --> 00:36:44,920 Speaker 1: and forties that we like to encourage you to consider. 839 00:36:45,160 --> 00:36:47,040 Speaker 1: And what if people are listening and they're like, oh 840 00:36:47,080 --> 00:36:49,200 Speaker 1: my gosh, I am just not there. You know, I'm 841 00:36:49,239 --> 00:36:52,120 Speaker 1: in my late forties and I haven't even started retirement 842 00:36:52,200 --> 00:36:55,080 Speaker 1: stuff or whatever. It would look like for different people. 843 00:36:55,239 --> 00:36:57,600 Speaker 1: How do you not get overwhelmed when you're hearing like 844 00:36:57,600 --> 00:37:01,520 Speaker 1: a foundational plan like this and you're us not there? Yeah, 845 00:37:01,840 --> 00:37:03,960 Speaker 1: you know it comes back to um. I've shared this 846 00:37:04,000 --> 00:37:07,080 Speaker 1: with people before. Back in the day, I lived in 847 00:37:07,080 --> 00:37:10,520 Speaker 1: a condo downtown Nashville, and I used to go running, 848 00:37:10,520 --> 00:37:12,600 Speaker 1: believe it or not, used to go running for exercise. 849 00:37:12,760 --> 00:37:15,600 Speaker 1: And uh, you know this area, Kelly. It's there's a 850 00:37:15,600 --> 00:37:18,680 Speaker 1: bi Centennial Mall in Nashville, and it's this long kind 851 00:37:18,680 --> 00:37:21,160 Speaker 1: of flat strip And I remember when I started running, 852 00:37:21,280 --> 00:37:23,560 Speaker 1: if I would look down at the very end. I 853 00:37:23,560 --> 00:37:25,320 Speaker 1: don't know how long that b Centennial Mall was, but 854 00:37:25,320 --> 00:37:27,080 Speaker 1: it was a pretty good distance. But if I looked 855 00:37:27,080 --> 00:37:28,520 Speaker 1: at the end of where I needed to run to, 856 00:37:29,280 --> 00:37:31,759 Speaker 1: probably about halfway through, I would just start walking and 857 00:37:31,760 --> 00:37:33,480 Speaker 1: there was a being I was like, I'm tired, I'm 858 00:37:33,520 --> 00:37:35,560 Speaker 1: gas you know, I just I can't make it there. 859 00:37:35,640 --> 00:37:37,720 Speaker 1: My side hurts a little bit. So what I started 860 00:37:37,760 --> 00:37:39,960 Speaker 1: doing is I started looking at Okay, that's where I 861 00:37:40,000 --> 00:37:42,279 Speaker 1: need to go. And then I started looking down at 862 00:37:42,320 --> 00:37:44,759 Speaker 1: the expansion cracks in the concrete and I would count 863 00:37:44,800 --> 00:37:47,000 Speaker 1: them that I would do one, two, three, as i'd 864 00:37:47,040 --> 00:37:48,959 Speaker 1: run by them, and all of a sudden I would 865 00:37:49,040 --> 00:37:50,680 Speaker 1: look up and I'm already at the end of my 866 00:37:50,760 --> 00:37:53,359 Speaker 1: centennial mall, just because I saw where I needed to go, 867 00:37:53,680 --> 00:37:55,239 Speaker 1: and then I just focused on what I needed to 868 00:37:55,280 --> 00:37:57,600 Speaker 1: do today. And that's how I would encourage you to 869 00:37:57,600 --> 00:37:59,880 Speaker 1: look at planning is don't get discouraged going oh my, 870 00:38:00,200 --> 00:38:02,319 Speaker 1: I've got to run that far. Just go that's where 871 00:38:02,320 --> 00:38:04,120 Speaker 1: I want to get. What can I do today to 872 00:38:04,120 --> 00:38:06,680 Speaker 1: make a difference on that um And maybe it's a 873 00:38:06,719 --> 00:38:09,800 Speaker 1: little bit too emergency fund. Maybe it's cutting some discretionary compenses. 874 00:38:10,120 --> 00:38:12,919 Speaker 1: Maybe it's trying to reassess your insurances to lower some 875 00:38:12,920 --> 00:38:15,799 Speaker 1: some costs long term. Maybe it's it's looking at your 876 00:38:15,800 --> 00:38:17,840 Speaker 1: investment accounts to try to increase the rate of return 877 00:38:17,920 --> 00:38:20,360 Speaker 1: within your risk tolerance. I mean, it's all these different 878 00:38:20,360 --> 00:38:22,800 Speaker 1: things that we could be doing. But we've had clients 879 00:38:22,840 --> 00:38:26,000 Speaker 1: that said, you know, we have we have just completely 880 00:38:26,000 --> 00:38:29,360 Speaker 1: mismana to our finances for our first thirty working years, 881 00:38:29,640 --> 00:38:31,279 Speaker 1: and then they found a lot of success in their 882 00:38:31,280 --> 00:38:33,799 Speaker 1: fifties or sixties, and so you can make up a lot. 883 00:38:33,800 --> 00:38:37,239 Speaker 1: It's never too late to start planning, never too late. 884 00:38:37,360 --> 00:38:40,400 Speaker 1: So just start small, start where you got it? Have 885 00:38:40,480 --> 00:38:43,560 Speaker 1: you got it? So it's a building process. Yes, Um, 886 00:38:43,600 --> 00:38:45,880 Speaker 1: that was when I remember when I really first started 887 00:38:45,920 --> 00:38:48,480 Speaker 1: to learn about money at all or try to be 888 00:38:48,520 --> 00:38:51,479 Speaker 1: an adult financially. I just was so overwhelmed. I didn't 889 00:38:51,480 --> 00:38:53,640 Speaker 1: know where to start. And so I think that was 890 00:38:53,680 --> 00:38:56,080 Speaker 1: the biggest thing for me, was just the legwork. And then, 891 00:38:56,120 --> 00:38:58,720 Speaker 1: like you've said multiple times, I mean, it just starts 892 00:38:58,760 --> 00:39:01,640 Speaker 1: to become second nature and don't even really realize that 893 00:39:01,719 --> 00:39:03,800 Speaker 1: you're saving as much as you are, that you're putting 894 00:39:03,800 --> 00:39:06,200 Speaker 1: this money into whatever it may be. For me, it's 895 00:39:06,200 --> 00:39:08,680 Speaker 1: like a tax account for me to pay my taxes 896 00:39:08,719 --> 00:39:12,080 Speaker 1: every year, you know, like it's stuff like that. So um, yeah, 897 00:39:12,120 --> 00:39:14,440 Speaker 1: I think these tips are amazing. Don't get overwhelmed if 898 00:39:14,440 --> 00:39:17,359 Speaker 1: you're not in these places. And um yeah, we really 899 00:39:17,360 --> 00:39:20,680 Speaker 1: appreciate this, Daniel No honored, Honored. I appreciate the time 900 00:39:20,719 --> 00:39:23,160 Speaker 1: to chat with your listeners. Tell the people where they 901 00:39:23,160 --> 00:39:25,920 Speaker 1: could find you. Yeah. Yes, so we've got a website. 902 00:39:26,040 --> 00:39:28,920 Speaker 1: Uh it is burke f G dot com as in 903 00:39:29,000 --> 00:39:32,640 Speaker 1: Financial Group dot com. Um, we've also got a Facebook page. 904 00:39:32,680 --> 00:39:35,040 Speaker 1: But those are great places to start, you know. Anyone 905 00:39:35,080 --> 00:39:38,359 Speaker 1: ever has any questions, has dates or reach out via 906 00:39:38,400 --> 00:39:41,239 Speaker 1: email or website inquiry or something like that, and we'll 907 00:39:41,280 --> 00:39:44,560 Speaker 1: be happy to try to address any questions. Amazing. Thank 908 00:39:44,600 --> 00:39:46,480 Speaker 1: you so much for being here, and thank you guys 909 00:39:46,520 --> 00:39:48,920 Speaker 1: for listening. Shoot all your questions over to Daniel and 910 00:39:48,960 --> 00:39:52,239 Speaker 1: we will keep the financial tips coming. Thanks guys, I