1 00:00:03,480 --> 00:00:09,399 Speaker 1: Welcome to Before Breakfast, a production of iHeartRadio. Good Morning. 2 00:00:10,800 --> 00:00:17,080 Speaker 1: This is Laura. Welcome to the Before Breakfast podcast. Today's 3 00:00:17,079 --> 00:00:20,919 Speaker 1: tip is to figure out what it costs to be you. 4 00:00:22,320 --> 00:00:24,960 Speaker 1: How much money is required to fund your life and 5 00:00:25,040 --> 00:00:27,560 Speaker 1: your family's life in the way you'd like to live it. 6 00:00:28,680 --> 00:00:32,000 Speaker 1: When you know this, you can make smarter choices about 7 00:00:32,000 --> 00:00:35,239 Speaker 1: your finances and know what you need to aim for 8 00:00:36,240 --> 00:00:38,360 Speaker 1: if there's a way you'd like to live in the future. 9 00:00:40,320 --> 00:00:44,360 Speaker 1: Today's tip comes from Bobby Rebel, a certified financial planner 10 00:00:44,400 --> 00:00:48,920 Speaker 1: and author of the book Launching Financial Grownups. Bobby was 11 00:00:48,960 --> 00:00:51,559 Speaker 1: a guest on my other podcast, Best of Both Worlds, 12 00:00:52,440 --> 00:00:56,120 Speaker 1: and she suggested people ask this question, what does it 13 00:00:56,200 --> 00:00:59,600 Speaker 1: cost to be you? In other words, what do you 14 00:00:59,680 --> 00:01:07,480 Speaker 1: spend to cross all purposes and categories to lead your life? Rent, childcare, vacations, 15 00:01:07,800 --> 00:01:16,800 Speaker 1: dog walking, gym membership, makeup, groceries, insurance premiums and everything else. Now, 16 00:01:16,840 --> 00:01:19,320 Speaker 1: I know on some level that this is just getting 17 00:01:19,360 --> 00:01:23,800 Speaker 1: at the old fashioned concept of a budget. People who 18 00:01:23,840 --> 00:01:26,400 Speaker 1: are wise with their money tend to know exactly what 19 00:01:26,480 --> 00:01:30,160 Speaker 1: is coming in and what is going out. But I 20 00:01:30,160 --> 00:01:33,160 Speaker 1: think this question what does it cost to be you? 21 00:01:34,240 --> 00:01:37,600 Speaker 1: Is a slightly better way to frame this matter because 22 00:01:37,640 --> 00:01:42,399 Speaker 1: it can be more aspirational as well. Let's say you 23 00:01:42,480 --> 00:01:45,560 Speaker 1: figured out what it costs to be you. You have 24 00:01:45,640 --> 00:01:48,640 Speaker 1: added up all your expenses and recurring payments and four 25 00:01:48,800 --> 00:01:53,040 Speaker 1: one K contributions and so forth. The good news is 26 00:01:53,040 --> 00:01:56,360 Speaker 1: that this amount is slightly less than what you and 27 00:01:56,600 --> 00:02:03,080 Speaker 1: any other adult household members bring in after taxes. Excellent. However, 28 00:02:03,760 --> 00:02:07,320 Speaker 1: you and these other adult household members would like to 29 00:02:07,360 --> 00:02:10,320 Speaker 1: start traveling internationally with your kids to see the world 30 00:02:10,720 --> 00:02:15,240 Speaker 1: before everyone moves out. Ideally, what it costs to be 31 00:02:15,360 --> 00:02:18,680 Speaker 1: you in the future will be higher because you're hoping 32 00:02:18,720 --> 00:02:23,440 Speaker 1: that you as an entity includes two international family trips 33 00:02:23,480 --> 00:02:28,040 Speaker 1: per year. So you price this out, add on whatever 34 00:02:28,080 --> 00:02:30,680 Speaker 1: the taxes would be to gross it up, and now 35 00:02:30,680 --> 00:02:33,919 Speaker 1: you have a different number. This is what it costs 36 00:02:33,919 --> 00:02:37,760 Speaker 1: to be ideal future you. To live the life you'd like, 37 00:02:39,000 --> 00:02:41,800 Speaker 1: you need to bring in this new number between the 38 00:02:41,800 --> 00:02:45,280 Speaker 1: two of you, so you can start looking for ways 39 00:02:45,320 --> 00:02:49,000 Speaker 1: to make that happen, or perhaps one of you would 40 00:02:49,080 --> 00:02:52,240 Speaker 1: like to take a year off of work. When you 41 00:02:52,320 --> 00:02:55,080 Speaker 1: know what it costs to be you as a family, 42 00:02:55,919 --> 00:02:57,960 Speaker 1: you can figure out if you can still have that 43 00:02:58,080 --> 00:03:02,359 Speaker 1: number without one person's income. Is the other person's income 44 00:03:02,440 --> 00:03:08,400 Speaker 1: sufficient maybe? If not, will savings cover it without compromising 45 00:03:08,440 --> 00:03:14,520 Speaker 1: all other goals? If so, amazing. If not, then the 46 00:03:14,560 --> 00:03:16,840 Speaker 1: family will either have to revise what it costs to 47 00:03:16,880 --> 00:03:20,120 Speaker 1: be them or figure out ways to replace that income 48 00:03:20,240 --> 00:03:23,320 Speaker 1: or save it up. Or maybe the party that wants 49 00:03:23,360 --> 00:03:26,200 Speaker 1: to take time off work can take a little less time, 50 00:03:27,200 --> 00:03:31,880 Speaker 1: but you won't be guessing about what is feasible. The 51 00:03:31,960 --> 00:03:35,040 Speaker 1: point is to make these decisions in a more rational way. 52 00:03:36,400 --> 00:03:38,920 Speaker 1: Money can be a source of a lot of angst. 53 00:03:39,600 --> 00:03:41,760 Speaker 1: But when you know what it costs to be you 54 00:03:42,840 --> 00:03:44,960 Speaker 1: and what it costs for your family to live in 55 00:03:45,000 --> 00:03:48,320 Speaker 1: the way you'd like, then you can make mature decisions 56 00:03:48,320 --> 00:03:51,400 Speaker 1: about how to bring in that amount of money. The 57 00:03:51,440 --> 00:03:53,520 Speaker 1: good news is that it may be possible to bring 58 00:03:53,560 --> 00:03:56,680 Speaker 1: in more money in various ways, but that is an 59 00:03:56,840 --> 00:04:01,000 Speaker 1: entirely different subject for a different episode. In any case, 60 00:04:01,160 --> 00:04:04,320 Speaker 1: just like knowing where your time goes, knowing where your 61 00:04:04,320 --> 00:04:07,400 Speaker 1: money goes is a tool that can help you design 62 00:04:07,560 --> 00:04:11,120 Speaker 1: the life you want. If you figure out what it 63 00:04:11,160 --> 00:04:14,120 Speaker 1: costs to be you, I'd love to hear your insights. 64 00:04:15,040 --> 00:04:21,080 Speaker 1: You can reach me at Laura at Laura vandercam dot com. 65 00:04:21,160 --> 00:04:26,560 Speaker 1: In the meantime, this is Laura. Thanks for listening, and 66 00:04:26,680 --> 00:04:37,039 Speaker 1: here's to making the most of our time. Thanks for 67 00:04:37,120 --> 00:04:41,880 Speaker 1: listening to Before Breakfast. If you've got questions, ideas, or feedback, 68 00:04:42,200 --> 00:04:51,520 Speaker 1: you can reach me at Laura at Laura vandercam dot com. 69 00:04:51,640 --> 00:04:55,680 Speaker 1: Before Breakfast is a production of iHeartMedia. For more podcasts 70 00:04:55,720 --> 00:05:00,320 Speaker 1: from iHeartMedia, please visit the iHeartRadio app, Apple Podcasts, or 71 00:05:00,360 --> 00:05:02,159 Speaker 1: wherever you listen to your favorite shows.