1 00:00:00,080 --> 00:00:01,960 Speaker 1: This is Kelly Henderson and you were listening to the 2 00:00:02,040 --> 00:00:05,400 Speaker 1: Velvet Edge podcast this week. My guest was the most 3 00:00:05,559 --> 00:00:09,040 Speaker 1: requested guest I have ever had to come back on 4 00:00:09,080 --> 00:00:11,639 Speaker 1: the v podcast. I mean, this is of any guest 5 00:00:11,720 --> 00:00:13,520 Speaker 1: that I've ever had. You guys wanted this guy back 6 00:00:14,040 --> 00:00:17,680 Speaker 1: the most. It is a financial planner and president of 7 00:00:17,760 --> 00:00:21,360 Speaker 1: Burke Financial Group, Daniel Burke. The last time Daniel was 8 00:00:21,400 --> 00:00:24,040 Speaker 1: on the podcast, we talked about saving money at any 9 00:00:24,120 --> 00:00:26,960 Speaker 1: income level and the easiest and most feasible ways to 10 00:00:27,000 --> 00:00:29,960 Speaker 1: do that. So this time I pulled everyone who follows 11 00:00:30,000 --> 00:00:32,640 Speaker 1: me on the Velvet Edge Instagram account. It's at Velvet 12 00:00:32,760 --> 00:00:35,120 Speaker 1: Edge for those of you who don't. But the biggest 13 00:00:35,159 --> 00:00:37,920 Speaker 1: question that you guys sent me was how do we 14 00:00:38,000 --> 00:00:41,040 Speaker 1: get out of debt? So Daniel and I covered that topic. 15 00:00:41,120 --> 00:00:44,000 Speaker 1: We talked paying off debt over saving and which order 16 00:00:44,040 --> 00:00:46,600 Speaker 1: you should focus on the two, and also when and 17 00:00:46,640 --> 00:00:49,600 Speaker 1: how you should start saving for your retirement. We also 18 00:00:49,600 --> 00:00:52,199 Speaker 1: talked about more fun things like buying a house, and 19 00:00:52,240 --> 00:00:55,760 Speaker 1: also how to still enjoy life while being responsible financially. 20 00:00:56,160 --> 00:01:00,840 Speaker 1: Here's our conversation. Okay, so I'm so happy to have 21 00:01:00,920 --> 00:01:02,280 Speaker 1: you back. Do you know that you were one of 22 00:01:02,320 --> 00:01:05,040 Speaker 1: the top podcasts that I got more emails about people 23 00:01:05,080 --> 00:01:07,120 Speaker 1: who are like I have so many more questions. Oh, 24 00:01:07,160 --> 00:01:09,840 Speaker 1: I'm honored. I'm honored. That's amazing. Thank you. People need 25 00:01:09,880 --> 00:01:11,800 Speaker 1: to know about what to do about money, I think 26 00:01:11,920 --> 00:01:13,600 Speaker 1: is the deal they do. You know, there's a lot 27 00:01:13,640 --> 00:01:18,120 Speaker 1: of um information circulating out there, from websites to TV, 28 00:01:18,240 --> 00:01:19,839 Speaker 1: to friends and family and all that kind of stuff, 29 00:01:19,840 --> 00:01:21,480 Speaker 1: so it can be tough to know, you know, what's 30 00:01:22,120 --> 00:01:25,720 Speaker 1: valid verse someone's opinion. So I completely understand all the questions. 31 00:01:25,840 --> 00:01:27,400 Speaker 1: And I think it's one of those things too where 32 00:01:27,400 --> 00:01:30,160 Speaker 1: it's kind of a case by case scenario, right, Like 33 00:01:30,280 --> 00:01:33,440 Speaker 1: everybody's life is so different, so it doesn't seem like 34 00:01:33,440 --> 00:01:36,560 Speaker 1: there's some blanket answer that works for everybody. But we'll 35 00:01:36,560 --> 00:01:38,319 Speaker 1: do our best to try to answer some of those today. 36 00:01:38,360 --> 00:01:40,919 Speaker 1: So I put up on Velvet's Edge on my Instagram 37 00:01:41,040 --> 00:01:43,760 Speaker 1: at Velvet's Edge, Um, what do you guys want to know? 38 00:01:44,160 --> 00:01:47,880 Speaker 1: And one of the main topics is debt, I mean, 39 00:01:47,920 --> 00:01:50,160 Speaker 1: I think, and that's something that a lot of Americans 40 00:01:50,160 --> 00:01:53,440 Speaker 1: struggle with credit card debt being one of them, and 41 00:01:53,440 --> 00:01:56,040 Speaker 1: then a student loan debt. It was a huge one 42 00:01:56,080 --> 00:01:59,400 Speaker 1: that I got questions about it's awful. It's awful. We um, 43 00:01:59,440 --> 00:02:01,120 Speaker 1: you know, do all to research and read a lot 44 00:02:01,120 --> 00:02:04,200 Speaker 1: of articles, and you hear all these speculations of what 45 00:02:04,320 --> 00:02:06,120 Speaker 1: is the next housing bubble, you know, coming off two 46 00:02:06,120 --> 00:02:08,760 Speaker 1: thousand eight and two thousand nine. UM In student loans, 47 00:02:08,760 --> 00:02:10,560 Speaker 1: I think is one of the big ones that comes up. 48 00:02:10,560 --> 00:02:12,360 Speaker 1: I know auto loans is another one that people are 49 00:02:12,400 --> 00:02:14,799 Speaker 1: worried about. It seems to be at a very high 50 00:02:14,880 --> 00:02:18,079 Speaker 1: rising rate. But UM, let's touch on the credit cards first, 51 00:02:18,080 --> 00:02:21,160 Speaker 1: because I think that's that's super important. So um, you know, 52 00:02:21,200 --> 00:02:24,680 Speaker 1: credit cards. It's funny because credit is is in today's 53 00:02:24,680 --> 00:02:27,400 Speaker 1: society and necessary evil. Um. You know, you've got to 54 00:02:27,400 --> 00:02:29,120 Speaker 1: have some kind of credit or credit score to be 55 00:02:29,200 --> 00:02:32,720 Speaker 1: able to borrow money in some capacity. But we also 56 00:02:32,720 --> 00:02:35,560 Speaker 1: don't want to be completely reliant on our credit score, 57 00:02:35,600 --> 00:02:37,800 Speaker 1: so there's a balancing act that you have to have. 58 00:02:37,919 --> 00:02:42,000 Speaker 1: Their We've got clients that funny story. One client is 59 00:02:42,480 --> 00:02:44,320 Speaker 1: I want to say, fifty five or sixty years old 60 00:02:44,639 --> 00:02:50,680 Speaker 1: and literally inherited millions of dollars from a family member. 61 00:02:51,240 --> 00:02:54,400 Speaker 1: And uh, it's funny. They were going to purchase a 62 00:02:54,400 --> 00:02:56,320 Speaker 1: home and do some other things and have zero credit. 63 00:02:56,400 --> 00:03:00,320 Speaker 1: They had never borrowed money nothing. They had millions of dollars, 64 00:03:00,520 --> 00:03:03,160 Speaker 1: millions of dollars, and so they couldn't get uh, you know, 65 00:03:03,200 --> 00:03:06,120 Speaker 1: money from the bank um or at at a reasonable rate. 66 00:03:06,240 --> 00:03:09,400 Speaker 1: So the credit score, let's talk about some of the components. 67 00:03:09,400 --> 00:03:12,400 Speaker 1: So you've got multiple factors that go into your credit score. 68 00:03:12,440 --> 00:03:16,120 Speaker 1: You've got the number of accounts open, are the lines open, 69 00:03:16,560 --> 00:03:19,240 Speaker 1: You've got what we call your credit utilization score. Again, 70 00:03:19,240 --> 00:03:22,600 Speaker 1: that one's pretty important. What that one says is, let's 71 00:03:22,639 --> 00:03:25,720 Speaker 1: say you had five credit cards. Let's say the balance 72 00:03:25,880 --> 00:03:28,000 Speaker 1: was two thousand dollars each. It was the limit that 73 00:03:28,000 --> 00:03:30,160 Speaker 1: you could put on each one of those and between 74 00:03:30,160 --> 00:03:33,480 Speaker 1: those ten credit cards, your your total utilization was ten 75 00:03:33,480 --> 00:03:36,200 Speaker 1: thousand dollars that you could put two thousand on each card, 76 00:03:36,240 --> 00:03:39,040 Speaker 1: so two times five um and let's say you had 77 00:03:39,160 --> 00:03:42,680 Speaker 1: twenty or not twenty two thou dollars of outstanding balance 78 00:03:42,840 --> 00:03:45,120 Speaker 1: on those credit cards. That would give you a twenty 79 00:03:45,160 --> 00:03:48,480 Speaker 1: percent utilization score. So you typically want to try to 80 00:03:48,560 --> 00:03:53,520 Speaker 1: leave your credit utilization score under thirty. And so my 81 00:03:53,520 --> 00:03:55,960 Speaker 1: my kind of recommendation on that is, this is where 82 00:03:55,960 --> 00:03:58,120 Speaker 1: it can be tough to manage. If you've got ten 83 00:03:58,360 --> 00:04:00,880 Speaker 1: fifteen credit cards and we see a lot. You know. 84 00:04:01,000 --> 00:04:03,080 Speaker 1: You you go to one store and they say, hey, 85 00:04:03,120 --> 00:04:05,000 Speaker 1: if you sign up for credit card, you'll get fifteen 86 00:04:05,280 --> 00:04:07,280 Speaker 1: off this purchase. So you're like, oh, that makes sense. 87 00:04:07,680 --> 00:04:10,560 Speaker 1: So you take out you know, uh Macy's card and 88 00:04:10,560 --> 00:04:12,600 Speaker 1: then you go purchase some furniture and they say, hey, 89 00:04:12,600 --> 00:04:14,480 Speaker 1: this is zero percent for the next twenty four months. 90 00:04:14,480 --> 00:04:16,360 Speaker 1: Do you want to take out a credit card? Oh? Great, yeah, 91 00:04:16,360 --> 00:04:18,360 Speaker 1: that's perfect. So now you've got another credit card and 92 00:04:18,400 --> 00:04:19,720 Speaker 1: all of a sudden you look up and you've got 93 00:04:19,720 --> 00:04:22,400 Speaker 1: ten to fifteen credit cards and so what that can 94 00:04:22,440 --> 00:04:25,720 Speaker 1: do is that can mess with that utilization score. Okay, 95 00:04:26,120 --> 00:04:29,799 Speaker 1: so there's a balance between having credit having credit cards 96 00:04:29,839 --> 00:04:32,800 Speaker 1: and not having too many credit cards. What do you 97 00:04:32,880 --> 00:04:36,560 Speaker 1: what is the number that you would recommend um, you know, 98 00:04:37,400 --> 00:04:39,960 Speaker 1: or even just like a small range. Yeah, yeah, because 99 00:04:40,200 --> 00:04:43,320 Speaker 1: the sounds like a lot. It is, it is. There's 100 00:04:43,360 --> 00:04:47,200 Speaker 1: no for me, there's no perfect answer. Um. I think 101 00:04:47,200 --> 00:04:50,279 Speaker 1: about manage, you know, what's easy to manage. So sometimes 102 00:04:50,320 --> 00:04:52,800 Speaker 1: two to three I think it's reasonable. But you know 103 00:04:52,839 --> 00:04:54,880 Speaker 1: I kind of have to go back and say, why 104 00:04:54,920 --> 00:04:57,880 Speaker 1: why do we need more? Um, you know, credit cards? 105 00:04:57,880 --> 00:05:00,479 Speaker 1: You know, sometimes you want to try to figure out, Um, 106 00:05:00,520 --> 00:05:02,320 Speaker 1: maybe you're a big traveler and so you know, a 107 00:05:02,360 --> 00:05:04,400 Speaker 1: Southwest card or one of these other cards might be 108 00:05:04,440 --> 00:05:06,560 Speaker 1: really good to crew points in that way. Or you 109 00:05:06,640 --> 00:05:08,480 Speaker 1: might just say, you know what, the cash back is nice, 110 00:05:08,480 --> 00:05:10,640 Speaker 1: so find a credit card that kind of fits, you know, 111 00:05:10,720 --> 00:05:14,719 Speaker 1: the best rewards program for whatever you're looking to accomplish. Um. 112 00:05:14,760 --> 00:05:17,120 Speaker 1: I think that's first and foremost. But the second thing 113 00:05:17,240 --> 00:05:20,719 Speaker 1: is you also then want to look at, Okay, what 114 00:05:20,800 --> 00:05:22,920 Speaker 1: am I going to be purchasing that credit is very 115 00:05:22,960 --> 00:05:25,159 Speaker 1: important coming up here. Okay, So for example, if you 116 00:05:25,200 --> 00:05:27,360 Speaker 1: say my car is pretty new, I'm not gonna be 117 00:05:27,400 --> 00:05:29,400 Speaker 1: buying a house for a while, there's not really any 118 00:05:29,440 --> 00:05:31,919 Speaker 1: big purchases that I'm gonna need to um, you know, 119 00:05:32,000 --> 00:05:35,080 Speaker 1: run my credit and borrow money for. Then it's that's 120 00:05:35,080 --> 00:05:37,000 Speaker 1: a great time to try to clean up your credit score. 121 00:05:37,080 --> 00:05:39,520 Speaker 1: And the reason being is because if you start closing 122 00:05:39,560 --> 00:05:42,039 Speaker 1: accounts at a rapid rate, that can negatively affect your 123 00:05:42,040 --> 00:05:45,560 Speaker 1: credit score because it messes with that utilization score. And 124 00:05:45,640 --> 00:05:47,800 Speaker 1: so you know, we'll have clients that sometimes get in 125 00:05:47,839 --> 00:05:49,960 Speaker 1: trouble because they think they're doing the right thing and 126 00:05:49,960 --> 00:05:52,480 Speaker 1: they are by canceling a bunch of credit cards that 127 00:05:52,480 --> 00:05:54,000 Speaker 1: they didn't use and they're trying to clean everything up, 128 00:05:54,000 --> 00:05:56,200 Speaker 1: but it actually affects their score, and then they go 129 00:05:56,240 --> 00:05:58,080 Speaker 1: to borrow for a house or a car, and then 130 00:05:58,080 --> 00:06:00,880 Speaker 1: their credit score are then their interest trade is even higher. 131 00:06:01,240 --> 00:06:03,960 Speaker 1: And so it's just a fine balancing act. So it's 132 00:06:04,000 --> 00:06:06,440 Speaker 1: a great thing to do after you've purchased a house 133 00:06:06,520 --> 00:06:08,760 Speaker 1: or to try to clean those things up and and 134 00:06:08,760 --> 00:06:12,280 Speaker 1: and just hone in on what's important to UM. But 135 00:06:12,360 --> 00:06:14,640 Speaker 1: there's so many factors that go into it can be exhausting. 136 00:06:14,640 --> 00:06:16,760 Speaker 1: And there's multiple credit agencies and so you can have 137 00:06:16,800 --> 00:06:20,320 Speaker 1: a different number at each credit agency. UM. But you 138 00:06:20,360 --> 00:06:22,560 Speaker 1: know credit and once again it's a necessary evil, but 139 00:06:22,680 --> 00:06:26,200 Speaker 1: not in excess on it. Well that's what I mean. 140 00:06:26,720 --> 00:06:29,680 Speaker 1: You before we think we've talked about it, when I said, like, 141 00:06:29,839 --> 00:06:32,280 Speaker 1: is using your credit card bat at all? And you're like, no, 142 00:06:32,360 --> 00:06:34,200 Speaker 1: it's not bad at all. But it's about balancing it. 143 00:06:34,279 --> 00:06:37,240 Speaker 1: So what's happening that you see where people are just 144 00:06:37,960 --> 00:06:40,960 Speaker 1: either they're getting in too much troubled debt wise or 145 00:06:41,200 --> 00:06:43,760 Speaker 1: just overusing I guess yeah, yeah, Well that kind of 146 00:06:43,760 --> 00:06:46,840 Speaker 1: comes back to some just basic financial principles, if you will. 147 00:06:46,880 --> 00:06:50,200 Speaker 1: Of number one, we don't have the cash on hand. Okay, 148 00:06:50,240 --> 00:06:52,839 Speaker 1: So let me explain what happens here. Um, you know, 149 00:06:52,880 --> 00:06:54,560 Speaker 1: let's say you have a thousand dollars in the bank 150 00:06:54,600 --> 00:06:57,200 Speaker 1: and that's all you have to your name, and uh, 151 00:06:57,320 --> 00:07:01,240 Speaker 1: something happens and you know, v cool repair issue or 152 00:07:01,400 --> 00:07:04,080 Speaker 1: a health concern or something. And so guess what if 153 00:07:04,080 --> 00:07:05,960 Speaker 1: you only have a thousand dollars in the bank and 154 00:07:06,120 --> 00:07:07,880 Speaker 1: the engine blows up in your car and you've got 155 00:07:07,880 --> 00:07:09,479 Speaker 1: to go buy a new car or or get the 156 00:07:09,520 --> 00:07:13,200 Speaker 1: repair bill. Where's it gonna go? Only one place? Credit card? Okay? 157 00:07:13,520 --> 00:07:15,360 Speaker 1: And now you've got a large balance on the credit 158 00:07:15,360 --> 00:07:18,080 Speaker 1: card that you're just trying to service. That monthly interest 159 00:07:18,160 --> 00:07:19,960 Speaker 1: on which on a lot of credit cards is up. 160 00:07:21,400 --> 00:07:24,360 Speaker 1: And so now you're paying twenties nine pc interest okay, 161 00:07:24,400 --> 00:07:26,400 Speaker 1: And that things accruing faster than you can pay it off, 162 00:07:26,480 --> 00:07:28,000 Speaker 1: and you've got just this little bit of money in 163 00:07:28,000 --> 00:07:30,480 Speaker 1: the bank, and it's just vicious cycle that you can never, 164 00:07:30,720 --> 00:07:33,320 Speaker 1: you know, catch up. And so the key to it 165 00:07:33,480 --> 00:07:37,640 Speaker 1: is number one, attacking that debt ferociously until you can 166 00:07:37,640 --> 00:07:39,720 Speaker 1: pay it off or or get it down extremely because 167 00:07:39,720 --> 00:07:42,200 Speaker 1: of how high that interest rate is. And then number two, 168 00:07:42,320 --> 00:07:44,679 Speaker 1: then you've got to, you know, just like it's it's religion. 169 00:07:44,720 --> 00:07:47,120 Speaker 1: You've got to focus on building up cash because if 170 00:07:47,160 --> 00:07:49,160 Speaker 1: you don't have that cash on hand, that cycle is 171 00:07:49,200 --> 00:07:52,480 Speaker 1: just gonna happen over and over and over again and 172 00:07:52,520 --> 00:07:55,400 Speaker 1: you'll never get ahead. Well that's about two people. There's 173 00:07:55,400 --> 00:07:57,240 Speaker 1: two separate things that got brought up to me. One 174 00:07:57,280 --> 00:08:00,200 Speaker 1: girl said, Um, she's paying a little more in her 175 00:08:00,200 --> 00:08:03,000 Speaker 1: minimum balance even to get it down. And she's like, 176 00:08:03,040 --> 00:08:05,320 Speaker 1: why does it feel like it's not going anywhere? But 177 00:08:05,440 --> 00:08:08,840 Speaker 1: that is exactly why. The interest is just adding on 178 00:08:08,920 --> 00:08:10,840 Speaker 1: there it is, and and and all those rates you know, 179 00:08:10,960 --> 00:08:13,160 Speaker 1: very some are you know, as low as five to 180 00:08:13,200 --> 00:08:15,040 Speaker 1: eight percent. Some are as high like I said to 181 00:08:16,800 --> 00:08:19,560 Speaker 1: but it's just amazing at how fast thot things can accrue. 182 00:08:19,560 --> 00:08:20,920 Speaker 1: And and you feel like you're doing the right thing 183 00:08:20,960 --> 00:08:22,720 Speaker 1: by making those payments and you're trying to do it, 184 00:08:23,000 --> 00:08:25,480 Speaker 1: but they're growing faster than you can pay them off. Um, 185 00:08:25,720 --> 00:08:27,480 Speaker 1: And so you know what you want to look at 186 00:08:27,520 --> 00:08:29,760 Speaker 1: their Number one. I always encourage people if if you 187 00:08:29,800 --> 00:08:31,480 Speaker 1: know you took out the debt, you need to do 188 00:08:31,560 --> 00:08:33,840 Speaker 1: everything you have to pay down the debt. Um. But 189 00:08:33,880 --> 00:08:37,240 Speaker 1: if something happens and you know you say, you know what, UM, 190 00:08:37,280 --> 00:08:39,440 Speaker 1: I can't pay this anymore. Trying to negotiate with that 191 00:08:39,480 --> 00:08:41,839 Speaker 1: credit card company is always a good, you know, manner 192 00:08:41,880 --> 00:08:44,320 Speaker 1: to call them up and say, listen, my my income 193 00:08:44,360 --> 00:08:47,200 Speaker 1: is taken a hit. I don't have income right now. UM, 194 00:08:47,240 --> 00:08:49,080 Speaker 1: you know, but I've got a thousand dollars you know, 195 00:08:49,120 --> 00:08:52,400 Speaker 1: I could put some money towards this or five or 196 00:08:52,400 --> 00:08:54,360 Speaker 1: whatever the case may be. So that's one way is 197 00:08:54,400 --> 00:08:56,040 Speaker 1: to call and try to negotiate it down. What do 198 00:08:56,040 --> 00:08:58,480 Speaker 1: you mean to negotiate the rate down? And negotiate the rate. 199 00:08:58,520 --> 00:09:01,960 Speaker 1: You can negotiate the balance the debt. Really, you can 200 00:09:01,960 --> 00:09:05,400 Speaker 1: try to do that if the situations you know, dire enough. UM. 201 00:09:05,440 --> 00:09:07,200 Speaker 1: A lot of times they won't do that until there's 202 00:09:07,240 --> 00:09:09,520 Speaker 1: been you know, months of inactivity on the account so 203 00:09:09,559 --> 00:09:12,160 Speaker 1: you're not paying it, which comes back to hurting your 204 00:09:12,200 --> 00:09:14,080 Speaker 1: credit score. But if you're at a point where you 205 00:09:14,080 --> 00:09:16,760 Speaker 1: don't think you can afford the credit card payments, I 206 00:09:16,760 --> 00:09:18,720 Speaker 1: would just forget about your credit score. Let's just try 207 00:09:18,760 --> 00:09:20,920 Speaker 1: to get out of debt and we'll rebuild the credit 208 00:09:20,960 --> 00:09:23,920 Speaker 1: over time. So that's number one. Number two, you can 209 00:09:23,960 --> 00:09:25,719 Speaker 1: if you're in a good, you know, financial situation, you 210 00:09:25,760 --> 00:09:28,600 Speaker 1: can look at consolidating that debt. We'll have some clients 211 00:09:28,640 --> 00:09:32,120 Speaker 1: that you know, interest has been accruing on certain credit 212 00:09:32,120 --> 00:09:33,920 Speaker 1: card and they're paying it down in their incomes. Good, 213 00:09:34,520 --> 00:09:37,160 Speaker 1: but um, you know what we'll do is look at 214 00:09:37,360 --> 00:09:39,840 Speaker 1: trying to find a zero percent balance card for twelve 215 00:09:39,880 --> 00:09:42,480 Speaker 1: or eighteen months, do a balance transfer from a high 216 00:09:42,520 --> 00:09:44,960 Speaker 1: interest you know card over to that one. I don't. 217 00:09:45,000 --> 00:09:46,960 Speaker 1: I don't love that just from a standpoint if I 218 00:09:46,960 --> 00:09:49,320 Speaker 1: feel like we're just kind of Robin Peter to pay 219 00:09:49,360 --> 00:09:51,880 Speaker 1: Paul um, but I'm okay with it. They say, yes, 220 00:09:51,920 --> 00:09:53,920 Speaker 1: we're serious, we're gonna pay this off. Might as well 221 00:09:53,960 --> 00:09:55,920 Speaker 1: not pay interest over the twelve months we're paying this all. 222 00:09:56,440 --> 00:09:58,080 Speaker 1: And so that works. But you've got to have you know, 223 00:09:58,160 --> 00:10:00,240 Speaker 1: good credit to be able to transfer that bal It's 224 00:10:00,320 --> 00:10:04,079 Speaker 1: over um and and consolidations can be fine too. The 225 00:10:04,120 --> 00:10:06,839 Speaker 1: biggest thing on consolidations, and this might be a good 226 00:10:06,880 --> 00:10:09,920 Speaker 1: segue into student loans, is you've got to make sure 227 00:10:09,920 --> 00:10:13,760 Speaker 1: your consolidated rate is less than you know, the average 228 00:10:13,920 --> 00:10:16,960 Speaker 1: date our average balance of the rest of the credit cards. 229 00:10:17,040 --> 00:10:19,400 Speaker 1: So it can be hard to tell what the average 230 00:10:19,400 --> 00:10:21,400 Speaker 1: weighting is. So let's say you had one credit card 231 00:10:21,440 --> 00:10:24,920 Speaker 1: that was at twelve, another one that was at six percent, 232 00:10:25,000 --> 00:10:27,560 Speaker 1: another one that's at Well, we need to see what 233 00:10:27,600 --> 00:10:29,280 Speaker 1: the balances aren't each one of those, to see what 234 00:10:29,320 --> 00:10:33,000 Speaker 1: the weighting is across those interest rates, and so for us, 235 00:10:33,880 --> 00:10:36,400 Speaker 1: and you can type into Google, you know, what is 236 00:10:36,440 --> 00:10:38,640 Speaker 1: the what is my average weighted interest rate on a 237 00:10:38,640 --> 00:10:40,760 Speaker 1: credit card? And they'll let you put in different balances 238 00:10:40,800 --> 00:10:43,560 Speaker 1: and different interest rates. But you've got to make sure 239 00:10:43,600 --> 00:10:45,719 Speaker 1: consolidating all those debts is going to give you a 240 00:10:45,840 --> 00:10:50,040 Speaker 1: less overall interest rate. Sometimes people do it for simplicity purposes, 241 00:10:50,080 --> 00:10:52,320 Speaker 1: just to get the three to five, you know, to one, 242 00:10:52,440 --> 00:10:54,839 Speaker 1: which is fine, but maybe their interest rate went up 243 00:10:55,280 --> 00:10:59,120 Speaker 1: so that that kind of different purpose. Yeah, yeah, interesting, Okay, 244 00:10:59,120 --> 00:11:01,200 Speaker 1: Well another thing I wanted to touch on, and then 245 00:11:01,240 --> 00:11:03,240 Speaker 1: I do want to talk about student loans. But a 246 00:11:03,280 --> 00:11:06,400 Speaker 1: lot of people said, what what is more important paying 247 00:11:06,440 --> 00:11:08,719 Speaker 1: off my debt or saving because you know, I think 248 00:11:08,720 --> 00:11:11,080 Speaker 1: we're all so wired to think about, especially as you 249 00:11:11,080 --> 00:11:13,560 Speaker 1: get older, starting to save for retirement and all of 250 00:11:13,559 --> 00:11:16,160 Speaker 1: that stuff. But if you still have credit card debt, 251 00:11:16,200 --> 00:11:17,800 Speaker 1: I think I know your answer is, you've got to 252 00:11:17,800 --> 00:11:19,200 Speaker 1: get rid of the debt. Get rid of the credit 253 00:11:19,200 --> 00:11:24,280 Speaker 1: card debt. Yeah, that's without a doubt. Um. And and 254 00:11:24,480 --> 00:11:27,840 Speaker 1: this philosophy could be argued by different people. My philosophy 255 00:11:27,840 --> 00:11:29,520 Speaker 1: when it comes to debt, you know, there's different types 256 00:11:29,520 --> 00:11:31,960 Speaker 1: of debt. We've got credit card debt okay, which in 257 00:11:32,000 --> 00:11:33,600 Speaker 1: my opinion is one of the worst. Um, you know 258 00:11:33,600 --> 00:11:35,679 Speaker 1: you've got I guess you got paid a loan debt. 259 00:11:35,720 --> 00:11:37,840 Speaker 1: You've got all those everything that's super high interest And 260 00:11:37,880 --> 00:11:40,559 Speaker 1: what I would consider super high interest rate is anything 261 00:11:40,640 --> 00:11:43,560 Speaker 1: over eight to ten Okay, So that's a good role thumb. 262 00:11:43,800 --> 00:11:45,719 Speaker 1: So if you've got debt that has an interest rate 263 00:11:45,760 --> 00:11:48,280 Speaker 1: of anything above you know, seven eight percent, somewhere in 264 00:11:48,320 --> 00:11:50,840 Speaker 1: that neighborhood, we really have to focus on that before 265 00:11:50,880 --> 00:11:52,640 Speaker 1: we start building up savings. Now, a little bit of 266 00:11:52,640 --> 00:11:57,480 Speaker 1: cash reserve is good, you know, maybe five grand, But um, 267 00:11:57,480 --> 00:12:01,440 Speaker 1: trying to focus on retirement or saving large sums of 268 00:12:01,480 --> 00:12:03,959 Speaker 1: money to buy a house when you're you've got money 269 00:12:03,960 --> 00:12:06,800 Speaker 1: flying out the back door to interest on a credit 270 00:12:06,840 --> 00:12:09,679 Speaker 1: card doesn't make any sense. It's kind of intuitive. Now, 271 00:12:10,240 --> 00:12:13,400 Speaker 1: debts that I am more comfortable with paying off systematically 272 00:12:13,400 --> 00:12:18,000 Speaker 1: over time car payments. Um, I'm fine with the student loans, 273 00:12:18,120 --> 00:12:20,880 Speaker 1: I'm fine with housing. Those types of debts because they're 274 00:12:20,920 --> 00:12:23,800 Speaker 1: typically lower interest, we can advertise that over a course 275 00:12:23,880 --> 00:12:26,600 Speaker 1: of you know, three to thirty years, depending on what 276 00:12:26,640 --> 00:12:29,080 Speaker 1: the debt is, and so I'm more comfortable with those, 277 00:12:29,080 --> 00:12:32,280 Speaker 1: but anything above seven to eight percent, just attack that 278 00:12:32,360 --> 00:12:34,840 Speaker 1: like that's that's the only thing that matters. Okay, Well, 279 00:12:34,880 --> 00:12:38,360 Speaker 1: so now let's talk about student loan because that is 280 00:12:38,360 --> 00:12:40,520 Speaker 1: a huge thing. I know for a lot of people 281 00:12:40,600 --> 00:12:44,480 Speaker 1: my age, that there's still paying those off unbelievable, Yeah, unbelievable. 282 00:12:44,559 --> 00:12:49,000 Speaker 1: So what's the deal. Yeah, yeah, we um Our Practices 283 00:12:49,200 --> 00:12:51,040 Speaker 1: is fortunate enough to work with a lot of people 284 00:12:51,040 --> 00:12:53,040 Speaker 1: that are high income orders that typically come with a 285 00:12:53,080 --> 00:12:55,959 Speaker 1: lot of student loan debt. Um a lot of medical professionals, 286 00:12:55,960 --> 00:12:59,719 Speaker 1: and that debt we see anywhere from you know, to 287 00:13:00,040 --> 00:13:02,680 Speaker 1: three dollars. We've got one client that has almost eight 288 00:13:02,760 --> 00:13:06,640 Speaker 1: hundred thousand dollars just in student loans, which is you know, 289 00:13:07,120 --> 00:13:12,520 Speaker 1: graduating with a very nice house. Luckily, we've been able 290 00:13:12,559 --> 00:13:15,240 Speaker 1: to consolidate and get the interest right down to where 291 00:13:15,240 --> 00:13:18,079 Speaker 1: it's it's more manageable. I think they're upper threes to 292 00:13:18,160 --> 00:13:20,960 Speaker 1: low force somewhere in that neighborhood. However, it's still a 293 00:13:21,040 --> 00:13:24,120 Speaker 1: ton of money so with student loans number one, First off, 294 00:13:24,360 --> 00:13:27,439 Speaker 1: I don't know if there's anyone listening to this podcast that, um, 295 00:13:27,480 --> 00:13:29,800 Speaker 1: you know maybe as a high school student or someone 296 00:13:29,880 --> 00:13:32,960 Speaker 1: you know early in their college career, freshman year somewhere 297 00:13:33,040 --> 00:13:36,079 Speaker 1: on those lines. What I would encourage you, and this 298 00:13:36,160 --> 00:13:38,280 Speaker 1: is something that that my parents told me early on 299 00:13:38,320 --> 00:13:41,320 Speaker 1: and I'm super appreciative for it. Make sure that the 300 00:13:41,360 --> 00:13:44,440 Speaker 1: decree you're deciding on, uh as far as your major 301 00:13:44,480 --> 00:13:47,319 Speaker 1: goes is, aligns with the student loan depth that you're 302 00:13:47,320 --> 00:13:50,760 Speaker 1: taking out. So so this is something and once again, 303 00:13:50,800 --> 00:13:54,440 Speaker 1: this is not to upset anyone. UM. We've got some 304 00:13:54,520 --> 00:13:58,280 Speaker 1: clients that have a have a degree that only pays 305 00:13:58,320 --> 00:14:01,440 Speaker 1: them maybe forty to fifty dollars a year, and they 306 00:14:01,520 --> 00:14:03,400 Speaker 1: knew that that degree was only going to pay them 307 00:14:03,400 --> 00:14:05,839 Speaker 1: forty to fifty thousand dollars a year, yet they went 308 00:14:05,840 --> 00:14:09,000 Speaker 1: to an Ivy League university. Okay, and now we have 309 00:14:09,000 --> 00:14:12,880 Speaker 1: two fifty dollars of debt with something that is let's 310 00:14:12,880 --> 00:14:15,280 Speaker 1: say a master's degree or doctorate that's still really good, 311 00:14:15,559 --> 00:14:18,000 Speaker 1: but it's only going to pay them fifty sixty thousand 312 00:14:18,040 --> 00:14:19,920 Speaker 1: dollars a year of income. And so it's gonna be 313 00:14:20,000 --> 00:14:23,320 Speaker 1: so hard to climb out of that. Okay, um. So 314 00:14:23,360 --> 00:14:25,480 Speaker 1: that's number one. Make sure your degree can support. So 315 00:14:25,520 --> 00:14:27,520 Speaker 1: if I have a physician that has three thousand of 316 00:14:27,520 --> 00:14:30,440 Speaker 1: student loan debt but they're making five hundred thousand dollars, 317 00:14:30,680 --> 00:14:32,400 Speaker 1: I'm okay with that. Yeah, I hate that they've got 318 00:14:32,400 --> 00:14:34,040 Speaker 1: the debt, but we can work out of it, make 319 00:14:34,080 --> 00:14:38,200 Speaker 1: that happen. So that's number one. Number two is you know, 320 00:14:38,240 --> 00:14:40,760 Speaker 1: once you're in the trenches, it's your sophomore, junior year, 321 00:14:40,920 --> 00:14:44,120 Speaker 1: you're in you know, graduate school or residency. The debt's 322 00:14:44,120 --> 00:14:46,320 Speaker 1: already there. Okay, We're gonna deal with it. Will make 323 00:14:46,360 --> 00:14:48,800 Speaker 1: it work. Not that big a deal. What we have 324 00:14:48,880 --> 00:14:51,520 Speaker 1: to decide is a couple of things. Number One, do 325 00:14:51,600 --> 00:14:53,040 Speaker 1: we want to look at some kind of student loan 326 00:14:53,080 --> 00:14:55,560 Speaker 1: for a giveness program? Um? And those are out there, 327 00:14:55,560 --> 00:14:57,600 Speaker 1: and that's a whole different animal that we deal with 328 00:14:57,640 --> 00:15:00,240 Speaker 1: a lot at um. Number two, do we want to 329 00:15:00,280 --> 00:15:04,080 Speaker 1: just pay this thing off systematically? Okay um, so looking 330 00:15:04,120 --> 00:15:06,040 Speaker 1: at paying it off over a course of ten or 331 00:15:06,040 --> 00:15:08,960 Speaker 1: fifteen years if they've given interest rates were Number three, 332 00:15:08,960 --> 00:15:10,640 Speaker 1: do we want to try to do like a consolidation 333 00:15:10,720 --> 00:15:13,040 Speaker 1: or refinance of those student loans? And that's a really 334 00:15:13,080 --> 00:15:15,040 Speaker 1: good option right now. And the reason I say that's 335 00:15:15,040 --> 00:15:18,360 Speaker 1: a really good option is because rates are so low. 336 00:15:18,680 --> 00:15:21,240 Speaker 1: I have been saying rates will never be this low. 337 00:15:21,400 --> 00:15:23,640 Speaker 1: Ever again, I've been saying that for like six years now, 338 00:15:23,680 --> 00:15:25,640 Speaker 1: someone looking like a hypocrite, But they've been so low 339 00:15:25,680 --> 00:15:28,240 Speaker 1: for so long. We we saw them take up last 340 00:15:28,280 --> 00:15:32,080 Speaker 1: year at the beginning of twenty nineteen, and we said, 341 00:15:32,080 --> 00:15:34,320 Speaker 1: all right, this is you know, the beginning of rates 342 00:15:34,360 --> 00:15:36,280 Speaker 1: taking off. And then they came back down the Fed 343 00:15:36,360 --> 00:15:40,120 Speaker 1: started adjusting rates again. So, um, you know, depending on 344 00:15:40,200 --> 00:15:42,960 Speaker 1: your credit score, you know, your income amounts, your profession, 345 00:15:43,000 --> 00:15:45,200 Speaker 1: all those types of things. We're getting some people that 346 00:15:45,240 --> 00:15:48,120 Speaker 1: are refinancing to the high threes right now, which is 347 00:15:48,120 --> 00:15:49,960 Speaker 1: a great interest rate for the student loans. It makes 348 00:15:49,960 --> 00:15:53,040 Speaker 1: it very manageable to pay that debt off in a 349 00:15:53,040 --> 00:15:56,360 Speaker 1: reasonable time frame while still not sacrificing being able to 350 00:15:56,400 --> 00:15:59,680 Speaker 1: buy a house and do other things. Um, you know, 351 00:15:59,720 --> 00:16:02,760 Speaker 1: whether or not you want to go completely full focused 352 00:16:02,800 --> 00:16:06,120 Speaker 1: on just paying off debt, shut off all retirement savings, 353 00:16:06,120 --> 00:16:08,200 Speaker 1: and person in a house till that's done. That's a 354 00:16:08,280 --> 00:16:11,920 Speaker 1: super dedicated approach and that's phenomenal. Nothing against that, but 355 00:16:12,000 --> 00:16:14,160 Speaker 1: most people still want to live, you know, some type 356 00:16:14,160 --> 00:16:17,240 Speaker 1: of life to where they can maybe not extravagant travel, 357 00:16:17,280 --> 00:16:19,560 Speaker 1: but still going a few trips you know, here and there, 358 00:16:19,840 --> 00:16:21,800 Speaker 1: and and maybe still purchase that first home and some 359 00:16:21,840 --> 00:16:25,000 Speaker 1: other things. And so refinancing that debt towards manageable and 360 00:16:25,040 --> 00:16:27,120 Speaker 1: then paying it off systematically over a course of five 361 00:16:27,240 --> 00:16:33,440 Speaker 1: or ten years is a great, great philosophy. Okay, so 362 00:16:33,760 --> 00:16:35,920 Speaker 1: you mentioned buying a house, and I think you know 363 00:16:35,960 --> 00:16:38,520 Speaker 1: a lot of times when people have debt, you don't 364 00:16:38,560 --> 00:16:40,280 Speaker 1: you just think well I can't do this or whatever. 365 00:16:40,320 --> 00:16:42,160 Speaker 1: So if you set up your plan, let's say, and 366 00:16:42,200 --> 00:16:44,480 Speaker 1: you're paying off your debt, what are your thoughts on 367 00:16:45,160 --> 00:16:48,240 Speaker 1: buying versus renting while you're doing that or is it 368 00:16:48,360 --> 00:16:50,680 Speaker 1: super important? Just you know a lot of people say, 369 00:16:50,960 --> 00:16:53,400 Speaker 1: well I used to run actually, and people would say, well, 370 00:16:53,400 --> 00:16:55,560 Speaker 1: you're just throwing money away, so you might as well 371 00:16:55,720 --> 00:16:58,520 Speaker 1: buy something because then at least you're putting money into 372 00:16:58,760 --> 00:17:03,040 Speaker 1: an investment. Yeah. Yeah, yeah. So, um, let's go back 373 00:17:03,080 --> 00:17:06,119 Speaker 1: to the original piece, which was kind of the savings portion. 374 00:17:06,240 --> 00:17:08,760 Speaker 1: So if you have you know, those high interest sets 375 00:17:08,760 --> 00:17:12,080 Speaker 1: that I talked about, you know, seven to eight plus, Um, 376 00:17:12,119 --> 00:17:14,919 Speaker 1: I really I don't think it's it's a priority to 377 00:17:14,960 --> 00:17:16,520 Speaker 1: try to get in the house until you get those 378 00:17:16,520 --> 00:17:18,360 Speaker 1: things pay It's just really it's kind of the cart 379 00:17:18,359 --> 00:17:20,359 Speaker 1: before the horse. So you need to set up a 380 00:17:20,400 --> 00:17:22,840 Speaker 1: plan and set up a time frame instead up a 381 00:17:22,840 --> 00:17:25,280 Speaker 1: payment amountain, Okay, I remember if you keep score, the 382 00:17:25,280 --> 00:17:27,679 Speaker 1: score gets better. So if you just want to try 383 00:17:27,880 --> 00:17:31,000 Speaker 1: and you know, pay this thing off as money comes 384 00:17:31,040 --> 00:17:32,639 Speaker 1: in and there's no real plan behind it, you're never 385 00:17:32,640 --> 00:17:34,359 Speaker 1: gonna pay it off. I can. I can promise you that. 386 00:17:34,680 --> 00:17:36,800 Speaker 1: But if you say no, I'm gonna put five a 387 00:17:36,840 --> 00:17:39,159 Speaker 1: month towards it for the next twelve months and then 388 00:17:39,160 --> 00:17:40,959 Speaker 1: that will pay it off and then I can start saving. 389 00:17:41,400 --> 00:17:44,000 Speaker 1: That's how you have to attack these things. So if 390 00:17:44,000 --> 00:17:47,120 Speaker 1: you want to start saving for a house, we always encouragement, 391 00:17:47,840 --> 00:17:51,199 Speaker 1: encourage anything when it comes to savings or investing. You 392 00:17:51,320 --> 00:17:55,840 Speaker 1: have to automate that savings. Okay. So automating the savings 393 00:17:56,000 --> 00:17:58,280 Speaker 1: is you know, setting up an automatic bank draft to 394 00:17:58,280 --> 00:18:01,159 Speaker 1: a separate account and see every day, whether it be 395 00:18:01,160 --> 00:18:04,280 Speaker 1: at the same institution a different institution. But if if 396 00:18:04,280 --> 00:18:05,959 Speaker 1: buying a house is important to you and you need 397 00:18:06,000 --> 00:18:08,679 Speaker 1: to save twenty dollars for that initial down payment as 398 00:18:08,720 --> 00:18:11,600 Speaker 1: a hypothetical, then chart that course. Say if I save 399 00:18:11,680 --> 00:18:13,320 Speaker 1: that thousand dollars a month, you know this is going 400 00:18:13,359 --> 00:18:14,840 Speaker 1: to take me a little less than two years to 401 00:18:14,840 --> 00:18:16,680 Speaker 1: be able to do that. But then I can feel 402 00:18:16,680 --> 00:18:18,800 Speaker 1: comfortable knowing that that money has been set aside every 403 00:18:18,840 --> 00:18:21,280 Speaker 1: month and it's pulled out of my checking account before 404 00:18:21,280 --> 00:18:23,880 Speaker 1: I can spend it, and it's set aside. That's how 405 00:18:23,920 --> 00:18:25,680 Speaker 1: you have to do it, you know, same thing, the 406 00:18:25,680 --> 00:18:27,640 Speaker 1: the whole four O one case where everyone thinks these 407 00:18:27,640 --> 00:18:31,879 Speaker 1: are these magical mystical retirement tools. They're not magical mystical, Okay. 408 00:18:32,000 --> 00:18:34,600 Speaker 1: The only thing that's that allows people to retire with 409 00:18:34,680 --> 00:18:36,399 Speaker 1: large balances. In their FOURWN case, it came out of 410 00:18:36,440 --> 00:18:38,240 Speaker 1: their paycheck. Everyone they never had it and they never 411 00:18:38,280 --> 00:18:40,359 Speaker 1: had it separate ground and then you know it was 412 00:18:40,400 --> 00:18:42,480 Speaker 1: invested in grew and all that stuff. But it's not 413 00:18:42,480 --> 00:18:44,800 Speaker 1: because it was magical. It's just because it was automated. 414 00:18:45,359 --> 00:18:47,600 Speaker 1: And that goes back to everything else. So that's a 415 00:18:47,680 --> 00:18:50,240 Speaker 1: really interesting point because if you don't know you have it, 416 00:18:50,359 --> 00:18:52,800 Speaker 1: you can't spend it. You can't so it's just like 417 00:18:52,840 --> 00:18:54,520 Speaker 1: it was never there and before you know it, it's 418 00:18:54,520 --> 00:18:56,840 Speaker 1: adding up in an account. You got it, you got it. 419 00:18:57,000 --> 00:18:59,919 Speaker 1: So now the buying verse renting, Okay, you've got the 420 00:19:00,400 --> 00:19:05,480 Speaker 1: how to go about, you know, saving for that. So 421 00:19:05,560 --> 00:19:08,080 Speaker 1: in America, okay, what does the American dream? It's to 422 00:19:08,119 --> 00:19:10,520 Speaker 1: own a house like that's been ingrained in us for 423 00:19:10,600 --> 00:19:13,480 Speaker 1: our entire life. Like that is what you do, and 424 00:19:13,520 --> 00:19:16,360 Speaker 1: I think I think it's phenomenal. I differ a little 425 00:19:16,400 --> 00:19:19,760 Speaker 1: bit than some people. Most people say owning a home 426 00:19:19,840 --> 00:19:23,679 Speaker 1: is an investment. I do not consider a home and investment, Okay, 427 00:19:24,040 --> 00:19:27,960 Speaker 1: all right, I consider a home and asset. Okay. So, 428 00:19:28,040 --> 00:19:30,840 Speaker 1: and an asset for me is is something that if 429 00:19:30,880 --> 00:19:32,840 Speaker 1: I had to sell that thing, there would be some 430 00:19:32,880 --> 00:19:35,240 Speaker 1: monetary value that I could get back from it. But 431 00:19:35,440 --> 00:19:38,280 Speaker 1: an investment for me is something that is long term, 432 00:19:38,359 --> 00:19:40,520 Speaker 1: that is appreciating at an at a given rate, and 433 00:19:40,560 --> 00:19:43,439 Speaker 1: then I can utilize that for something. I can utilize 434 00:19:43,480 --> 00:19:46,720 Speaker 1: it for my retirement or to purchase something else. Whereas 435 00:19:46,760 --> 00:19:49,560 Speaker 1: for a house, most likely, most likely, and this is 436 00:19:49,560 --> 00:19:52,360 Speaker 1: not the case, you're not going to sell your house 437 00:19:52,359 --> 00:19:54,800 Speaker 1: for your retirement because you're gonna live in it, or 438 00:19:54,840 --> 00:19:56,439 Speaker 1: you're gonna buy new house and roll that you know, 439 00:19:56,480 --> 00:19:59,119 Speaker 1: equity into that next home. So that's why I consider 440 00:19:59,160 --> 00:20:02,000 Speaker 1: a house and asset not an investment. And two, when 441 00:20:02,000 --> 00:20:04,320 Speaker 1: you add up and we've done the spreadsheet before, and 442 00:20:04,359 --> 00:20:08,320 Speaker 1: it's really really really interesting, Um, if you add up 443 00:20:08,400 --> 00:20:10,960 Speaker 1: everything that goes into person a house. Okay, So so 444 00:20:11,080 --> 00:20:13,680 Speaker 1: let's kind of start from the beginning. You buy a house, 445 00:20:13,720 --> 00:20:16,360 Speaker 1: you have closing costs. I'm gonna to go into it. Um, 446 00:20:16,480 --> 00:20:18,840 Speaker 1: if you're buying a house, you also have realtor's feeses 447 00:20:18,840 --> 00:20:21,240 Speaker 1: are typically paid for by the seller. But you've got those, 448 00:20:21,800 --> 00:20:24,359 Speaker 1: then what you've got is, um, you know, all the 449 00:20:24,359 --> 00:20:26,920 Speaker 1: title insurance, everything that goes into that. Then you've got 450 00:20:26,920 --> 00:20:29,360 Speaker 1: to turn the utilities on and do a down payment there. 451 00:20:29,440 --> 00:20:31,680 Speaker 1: Then you've got to mow the lawn. Okay. Then you've 452 00:20:31,680 --> 00:20:33,840 Speaker 1: got the roof repairs and the hot water heat, and 453 00:20:33,880 --> 00:20:36,199 Speaker 1: you've got all these other things that you don't have 454 00:20:36,240 --> 00:20:38,800 Speaker 1: to deal with as a renter. It's just like, as 455 00:20:38,840 --> 00:20:41,679 Speaker 1: you're speaking, I'm like, oh my god, why did I buy? 456 00:20:40,760 --> 00:20:45,680 Speaker 1: It's like, and I think it depends on the house 457 00:20:45,680 --> 00:20:47,200 Speaker 1: in the area and all that kind of stuff, but 458 00:20:47,720 --> 00:20:50,119 Speaker 1: I truly believe. And then let's say you advertise that 459 00:20:50,160 --> 00:20:53,040 Speaker 1: out over ten or fifteen or twenty thirty years. Okay, 460 00:20:53,280 --> 00:20:57,040 Speaker 1: so you take all that compounding maintenance, you've got property 461 00:20:57,080 --> 00:20:58,800 Speaker 1: taxes you don't have to pay us a renting and 462 00:20:58,800 --> 00:21:00,280 Speaker 1: then you've got all the fees on the back and 463 00:21:00,320 --> 00:21:02,600 Speaker 1: when you sell this six percent realtors feed, you've got 464 00:21:02,640 --> 00:21:05,320 Speaker 1: all these other things. When you really do the math, 465 00:21:05,880 --> 00:21:07,920 Speaker 1: I don't think there's that much of a difference from renting. Now. 466 00:21:07,960 --> 00:21:09,920 Speaker 1: It depends on thething areas. Okay, this is a very 467 00:21:09,960 --> 00:21:12,960 Speaker 1: broad statement I'm saying, which I don't like doing. Um, 468 00:21:13,000 --> 00:21:15,679 Speaker 1: but this is why I say there's no shame in 469 00:21:15,760 --> 00:21:18,800 Speaker 1: renting until you get your finances cleaned up to purchase. 470 00:21:19,200 --> 00:21:22,280 Speaker 1: I think purchasing makes sense, but I I see people 471 00:21:22,359 --> 00:21:24,679 Speaker 1: rush into purchasing a house because we're supposed to own 472 00:21:24,720 --> 00:21:27,080 Speaker 1: a home, all right, So let's clean up the credit 473 00:21:27,119 --> 00:21:29,560 Speaker 1: card debt, let's get the emergency fund, let's build up 474 00:21:29,600 --> 00:21:32,560 Speaker 1: the savings for the down payment, and then buy the house. Perfectly, 475 00:21:32,560 --> 00:21:34,479 Speaker 1: find about the house, but don't rush when you've got 476 00:21:34,560 --> 00:21:36,080 Speaker 1: all these other things that you could be doing, because 477 00:21:36,119 --> 00:21:38,240 Speaker 1: you're really not missing out on something. You're missing out 478 00:21:38,240 --> 00:21:39,840 Speaker 1: on having to deal with repairs. That's what you're missing 479 00:21:39,880 --> 00:21:42,080 Speaker 1: out on. My gosh, it's so true. Like, I just 480 00:21:42,119 --> 00:21:43,720 Speaker 1: bought a house and I think we've been talking about 481 00:21:43,720 --> 00:21:46,480 Speaker 1: that on Instagram, and um, that was our goal last year. 482 00:21:46,520 --> 00:21:48,680 Speaker 1: You and I were like, Okay, let's save the money 483 00:21:48,720 --> 00:21:50,760 Speaker 1: for the eggs and then let's get the house done. 484 00:21:51,280 --> 00:21:55,680 Speaker 1: So I did both of those things, and um, literally 485 00:21:55,920 --> 00:21:57,840 Speaker 1: I've been in this house for three months. I just 486 00:21:57,880 --> 00:22:00,480 Speaker 1: had to get a new dryer and and give we 487 00:22:00,560 --> 00:22:03,120 Speaker 1: just finished a seven month renovation and I'm sitting there 488 00:22:03,160 --> 00:22:05,639 Speaker 1: going why why did we do this? So you know, 489 00:22:05,640 --> 00:22:08,000 Speaker 1: I'm preaching to the choir here, but it's but it's 490 00:22:08,000 --> 00:22:10,399 Speaker 1: really true if you truly add up the numbers. Okay. 491 00:22:10,440 --> 00:22:13,280 Speaker 1: And and there's real estate professionals okay that are phenomenal 492 00:22:13,320 --> 00:22:14,879 Speaker 1: what they do. So I'm not trying to harp on 493 00:22:14,920 --> 00:22:17,439 Speaker 1: them or get people that are. You know, they all 494 00:22:17,480 --> 00:22:19,359 Speaker 1: try to get people off the sidelines of renting and buying. 495 00:22:19,359 --> 00:22:21,800 Speaker 1: I think that's that's phenomenal. It's good. But everything is 496 00:22:21,840 --> 00:22:24,520 Speaker 1: within context of all your other finances. Don't look at 497 00:22:24,520 --> 00:22:27,640 Speaker 1: finances and silos. Don't look at my investments are over here, 498 00:22:27,640 --> 00:22:29,920 Speaker 1: and my housing is over here, and my insurances over there. 499 00:22:30,080 --> 00:22:34,000 Speaker 1: All of those things should be coordinated together around your goals. Okay, 500 00:22:34,080 --> 00:22:36,600 Speaker 1: that's the important piece to to think about. So is 501 00:22:36,800 --> 00:22:40,360 Speaker 1: buying better than renting advice versa? No, it's in context 502 00:22:40,359 --> 00:22:44,160 Speaker 1: of your situations. Well like okay, for me, for instance, 503 00:22:44,240 --> 00:22:47,040 Speaker 1: with one of the big things that I wanted with 504 00:22:47,280 --> 00:22:50,800 Speaker 1: buying a house was, you know, I'm self employed. I 505 00:22:50,880 --> 00:22:54,200 Speaker 1: don't have some corporation that I'm going through setting up before, 506 00:22:54,200 --> 00:22:56,480 Speaker 1: oh kay and all these things, and so in my head, 507 00:22:56,520 --> 00:23:02,280 Speaker 1: because Nashville's housing market is pretty right, um, I was thinking, well, 508 00:23:02,359 --> 00:23:05,680 Speaker 1: these are you know, I want to start appreciating up assets. 509 00:23:06,119 --> 00:23:08,400 Speaker 1: I was looking at it as investments. But I see 510 00:23:08,400 --> 00:23:10,840 Speaker 1: what you're saying, like, now, if you go buy rental property, 511 00:23:11,000 --> 00:23:14,080 Speaker 1: that's an investment. And the reason what do you mean that? Okay? Okay, 512 00:23:14,080 --> 00:23:15,560 Speaker 1: so let's think about that. So are we going to 513 00:23:15,640 --> 00:23:19,400 Speaker 1: sell our primary residence to fund our retirement? Probably not? Okay, 514 00:23:19,480 --> 00:23:21,480 Speaker 1: that's why it's just an asset on our balance sheet. 515 00:23:21,720 --> 00:23:23,920 Speaker 1: When we go buy our rental property. What is that doing. 516 00:23:24,000 --> 00:23:27,280 Speaker 1: It's appreciating in value. We're getting income from it, right, 517 00:23:27,520 --> 00:23:29,760 Speaker 1: and we could sell that and buy another property or 518 00:23:29,800 --> 00:23:33,800 Speaker 1: sell it and fund our retirement with that. That's an investment. Okay. 519 00:23:33,840 --> 00:23:35,879 Speaker 1: So that's kind of what like, I bought this house 520 00:23:36,080 --> 00:23:38,680 Speaker 1: looking at it as this is probably not where I'm 521 00:23:38,680 --> 00:23:40,360 Speaker 1: going to live for the rest of my life, but 522 00:23:40,520 --> 00:23:42,719 Speaker 1: I would like to keep it as a rental. As 523 00:23:42,720 --> 00:23:45,440 Speaker 1: a rental love it, Okay, I just needed your repar 524 00:23:45,600 --> 00:23:47,920 Speaker 1: No no, no, no, we're good. We're just think about 525 00:23:47,920 --> 00:23:49,480 Speaker 1: it that way. We get so many people that think 526 00:23:49,480 --> 00:23:52,120 Speaker 1: about their primary residence and they brag about the equity 527 00:23:52,160 --> 00:23:54,159 Speaker 1: that's in their primary right, and that's that's great, and 528 00:23:54,160 --> 00:23:57,440 Speaker 1: I'm glad they've got equity and ownership there. But if 529 00:23:57,440 --> 00:23:59,359 Speaker 1: we're not going to sell it and utilize that asset, 530 00:23:59,400 --> 00:24:01,960 Speaker 1: it's are utilize that asset for our retirement. It's just 531 00:24:02,000 --> 00:24:04,560 Speaker 1: an asset. It's not in investment. So it's just some 532 00:24:04,600 --> 00:24:07,520 Speaker 1: semantics on how we think about money. But we love 533 00:24:07,600 --> 00:24:11,120 Speaker 1: real estate, absolutely rental property as well. So all all 534 00:24:11,160 --> 00:24:14,159 Speaker 1: about that, okay, especially if you're in a booming like 535 00:24:14,280 --> 00:24:17,600 Speaker 1: city like Nashville where it's just not slowing down with growth. 536 00:24:17,800 --> 00:24:19,720 Speaker 1: First verse in a rural place where you know you 537 00:24:19,760 --> 00:24:22,000 Speaker 1: get some income from rent, but there's just no appreciational 538 00:24:22,040 --> 00:24:24,080 Speaker 1: that asset. It still might be an okay play, but 539 00:24:24,080 --> 00:24:27,120 Speaker 1: which is different different scenarios. So that's again a case 540 00:24:27,160 --> 00:24:31,080 Speaker 1: by case scenario people's situations. Okay, so the other biggest 541 00:24:31,200 --> 00:24:33,639 Speaker 1: question I got was about retirement, which is now what 542 00:24:33,720 --> 00:24:35,480 Speaker 1: you and I are working on for me. This is 543 00:24:35,560 --> 00:24:37,240 Speaker 1: the goal of this year to really put some focus 544 00:24:37,280 --> 00:24:41,240 Speaker 1: on that. You mentioned the automated savings, which is how 545 00:24:41,280 --> 00:24:44,199 Speaker 1: we already started discussing how we're going to do my 546 00:24:44,359 --> 00:24:46,280 Speaker 1: retirement stuff. So can you talk to you a little 547 00:24:46,280 --> 00:24:49,119 Speaker 1: bit about that? How important is retirement, etcetera. Yeah, I 548 00:24:49,119 --> 00:24:51,760 Speaker 1: think you know you've got you've got to look at um. 549 00:24:51,840 --> 00:24:53,640 Speaker 1: You know, everything starts out with a goal for us, 550 00:24:53,880 --> 00:24:56,680 Speaker 1: So you know, one of the first things is and 551 00:24:56,920 --> 00:24:58,879 Speaker 1: I'll kind of come back to spending in cash for 552 00:24:58,920 --> 00:25:01,960 Speaker 1: a little bit, um sit down, you know, it's we're 553 00:25:02,000 --> 00:25:05,239 Speaker 1: already what seven January, sit down and identify which your 554 00:25:05,240 --> 00:25:08,920 Speaker 1: goals are for. And I know this sounds super superficial 555 00:25:09,040 --> 00:25:11,880 Speaker 1: or this sounds like, um, you know, a life coach here, 556 00:25:11,880 --> 00:25:13,840 Speaker 1: and then that's not what I'm trying to do. But 557 00:25:14,040 --> 00:25:16,080 Speaker 1: if you don't have goals and you don't have them 558 00:25:16,080 --> 00:25:18,480 Speaker 1: written down, they're they're not goals or just simply wishes 559 00:25:18,480 --> 00:25:21,080 Speaker 1: in the back of your of your mind. So what 560 00:25:21,119 --> 00:25:24,360 Speaker 1: are some goals that that you could have, um, buy 561 00:25:24,359 --> 00:25:28,000 Speaker 1: a house. It could be by my first rental property. 562 00:25:28,119 --> 00:25:31,000 Speaker 1: It could be increased by four own k. It could be, 563 00:25:31,520 --> 00:25:33,360 Speaker 1: you know, take a trip with my family. It could 564 00:25:33,359 --> 00:25:35,200 Speaker 1: be it doesn't have to always be financial. It could 565 00:25:35,200 --> 00:25:36,920 Speaker 1: be read books, it could be whatever the case may be. 566 00:25:37,680 --> 00:25:41,160 Speaker 1: But if you can outline what those goals are, then 567 00:25:41,240 --> 00:25:42,840 Speaker 1: what we do is then we look at what is 568 00:25:42,840 --> 00:25:46,040 Speaker 1: our spending going towards. Okay, so let's talk about that now. 569 00:25:46,280 --> 00:25:48,760 Speaker 1: So we've got five goals that we want to accomplish. 570 00:25:49,040 --> 00:25:50,800 Speaker 1: Now I opened up my credit card statement or my 571 00:25:50,840 --> 00:25:54,080 Speaker 1: bank statement, okay, and I see that, uh, you know, 572 00:25:54,160 --> 00:25:57,840 Speaker 1: majority of my discretionary spending is going to the bars 573 00:25:57,840 --> 00:26:02,119 Speaker 1: on the weekend or being out, or are things that postmates. 574 00:26:02,400 --> 00:26:06,680 Speaker 1: I'm trying, not aligned with what my goals are. We're 575 00:26:06,680 --> 00:26:08,840 Speaker 1: all guilty, Like this is my hands up as well, 576 00:26:09,280 --> 00:26:10,800 Speaker 1: and so I think what you have to do is 577 00:26:10,840 --> 00:26:12,320 Speaker 1: you have to say, number one, what are my goals. 578 00:26:12,400 --> 00:26:14,719 Speaker 1: Number two, that's my spending a line with my goals, 579 00:26:14,840 --> 00:26:17,439 Speaker 1: and if they don't align that I would encourage you 580 00:26:17,840 --> 00:26:20,560 Speaker 1: cut those things out of your life. You reduce those dramatically, 581 00:26:20,760 --> 00:26:22,560 Speaker 1: because no one's going to ever look up when they're 582 00:26:22,560 --> 00:26:25,240 Speaker 1: seventy five years old and they're reflecting back on their life, 583 00:26:25,240 --> 00:26:28,520 Speaker 1: going I'm so glad I ate out of time, or 584 00:26:28,560 --> 00:26:31,119 Speaker 1: I am so glad you know I spent X amount 585 00:26:31,119 --> 00:26:33,320 Speaker 1: of dollars per month at AM on Amazon. Now, because 586 00:26:33,480 --> 00:26:36,359 Speaker 1: all those things are superficial. Were our closets before? We're like, 587 00:26:36,400 --> 00:26:39,240 Speaker 1: oh my gosh, how did I get this much stuff? God? 588 00:26:39,359 --> 00:26:42,280 Speaker 1: It's unreal, unreal, and and it's meaningless. It's fun to have, 589 00:26:42,359 --> 00:26:45,960 Speaker 1: but it's it's meaningless. So trying to align those goals. Okay, 590 00:26:46,000 --> 00:26:48,760 Speaker 1: so that's number one. Um Cutting the spending is number two. 591 00:26:48,960 --> 00:26:51,720 Speaker 1: And then from there what that does is that allows 592 00:26:51,760 --> 00:26:54,600 Speaker 1: you to free up some capital, okay, to where maybe 593 00:26:54,640 --> 00:26:56,919 Speaker 1: we don't have to adjust our lifestyle that much to 594 00:26:56,920 --> 00:26:59,679 Speaker 1: be able to save more. Okay. Another thing to look at, 595 00:26:59,760 --> 00:27:03,400 Speaker 1: kind of even the spending category is your insurances. Um 596 00:27:03,560 --> 00:27:05,440 Speaker 1: So you want to look at am I am paying 597 00:27:05,480 --> 00:27:07,679 Speaker 1: too much for home and auto insurance? It would it 598 00:27:07,720 --> 00:27:10,560 Speaker 1: makes sense to have a broker look at those and 599 00:27:10,640 --> 00:27:12,840 Speaker 1: kind of shop that across the market and see could 600 00:27:12,840 --> 00:27:16,000 Speaker 1: I reduce my renters insurance or my my homeowners insurance. 601 00:27:16,040 --> 00:27:18,679 Speaker 1: We recently did that UM on a refinance, and I 602 00:27:18,680 --> 00:27:21,520 Speaker 1: think just the insurance is saving us like a hundred 603 00:27:21,560 --> 00:27:24,040 Speaker 1: and thirty dollars a month, really not a not a ton, 604 00:27:24,400 --> 00:27:26,840 Speaker 1: but yeah, but that over time that can add up 605 00:27:27,240 --> 00:27:29,920 Speaker 1: and that's like a meal out, that's a nice dinner. Yeah, 606 00:27:30,080 --> 00:27:31,119 Speaker 1: Or it could go towards you know, if you had 607 00:27:31,119 --> 00:27:33,000 Speaker 1: a high interest credit card debt, there's a hundred thirty 608 00:27:33,000 --> 00:27:36,320 Speaker 1: bucks you can start putting putting towards that. So that's 609 00:27:36,400 --> 00:27:39,200 Speaker 1: number one. Looking at UM. You know, your health insurances 610 00:27:39,200 --> 00:27:42,360 Speaker 1: is always a great one during open enrollment to review UM. 611 00:27:42,480 --> 00:27:44,160 Speaker 1: You know, you can look at life insurance as those 612 00:27:44,160 --> 00:27:47,639 Speaker 1: types of disability insurance just great to every so awesome. 613 00:27:47,680 --> 00:27:50,199 Speaker 1: Review those things because sometimes you get them, you just 614 00:27:50,240 --> 00:27:53,880 Speaker 1: assume that they're good. Things change you might have Let's 615 00:27:53,960 --> 00:27:56,280 Speaker 1: use life insurance for example, you might have had another kid, 616 00:27:56,320 --> 00:27:57,840 Speaker 1: and you might have had two kids. You might have 617 00:27:57,880 --> 00:28:00,119 Speaker 1: purchased a new home and the value of the home 618 00:28:00,160 --> 00:28:02,280 Speaker 1: is actually more than it was when you got the 619 00:28:02,280 --> 00:28:06,000 Speaker 1: insurance five six years ago. UM, same thing disability insurance. 620 00:28:06,000 --> 00:28:08,760 Speaker 1: Maybe you had coverage and your income was X amount 621 00:28:08,840 --> 00:28:11,080 Speaker 1: and you've gotten several raises since then, and so we 622 00:28:11,119 --> 00:28:13,360 Speaker 1: need to increase our disability coverage. I mean, all those 623 00:28:13,359 --> 00:28:14,960 Speaker 1: things you want to look at. Now, does that help 624 00:28:14,960 --> 00:28:17,040 Speaker 1: out with the budget? No, But we want to make 625 00:28:17,040 --> 00:28:19,840 Speaker 1: sure that we always maintain that proper insurance coverage. Okay, 626 00:28:19,920 --> 00:28:22,120 Speaker 1: So that's a good good thing to do at least 627 00:28:22,160 --> 00:28:27,520 Speaker 1: every two years at a minimum there. But going back then, 628 00:28:27,600 --> 00:28:30,000 Speaker 1: so after we've cleaned up all that stuff, now looking 629 00:28:30,000 --> 00:28:32,600 Speaker 1: at a retirement savings. You know, everyone's goals are different. 630 00:28:32,640 --> 00:28:34,359 Speaker 1: When do I want to retire? You know, is a 631 00:28:34,480 --> 00:28:38,480 Speaker 1: sixty five? What kind of income do I think I 632 00:28:38,520 --> 00:28:41,200 Speaker 1: want retirement? You know? And then you can factor in 633 00:28:41,600 --> 00:28:43,720 Speaker 1: how much is tax going to play into that because 634 00:28:43,720 --> 00:28:45,800 Speaker 1: that's a big piece of of a retirement component. You know, 635 00:28:45,840 --> 00:28:48,520 Speaker 1: if you want a hundred thousand dollars a year of 636 00:28:48,520 --> 00:28:51,960 Speaker 1: income and retirement, but it's all pre tax versus after tax, 637 00:28:52,000 --> 00:28:54,360 Speaker 1: that's a big deal, okay, because if it's pre tax, 638 00:28:54,720 --> 00:28:56,400 Speaker 1: well guess what you might only get to take home 639 00:28:56,440 --> 00:28:59,480 Speaker 1: I don't know, seventy five thousand of that one thousand 640 00:28:59,480 --> 00:29:01,520 Speaker 1: of income. So those are things that we need to 641 00:29:01,560 --> 00:29:05,640 Speaker 1: think about. But coming back to our original discussion of automation, 642 00:29:05,720 --> 00:29:08,880 Speaker 1: it's the key. It's how people save. Okay, So if 643 00:29:08,920 --> 00:29:12,240 Speaker 1: we're automating for savings, and I think of savings and 644 00:29:12,320 --> 00:29:15,640 Speaker 1: investing in retirement as different. Um. Savings for me is 645 00:29:15,640 --> 00:29:19,520 Speaker 1: saving for some events, buying a house, buying a car, 646 00:29:19,880 --> 00:29:22,760 Speaker 1: getting to that emergency fund figure that is savings. Once 647 00:29:22,800 --> 00:29:25,360 Speaker 1: we reach those goals, then money should shift over into 648 00:29:25,440 --> 00:29:28,520 Speaker 1: the investment or the retirement category. And that's where we're 649 00:29:28,520 --> 00:29:30,400 Speaker 1: trying to get a higher rate of return than what's 650 00:29:30,400 --> 00:29:33,760 Speaker 1: on our savings account for a longer period of time. Okay, 651 00:29:33,800 --> 00:29:36,760 Speaker 1: it might be retirement. You might be saving up to 652 00:29:36,760 --> 00:29:38,280 Speaker 1: the point to where you can then invest in a 653 00:29:38,320 --> 00:29:41,920 Speaker 1: rental property. Okay, and then that's fine too. But you know, 654 00:29:41,960 --> 00:29:44,400 Speaker 1: we don't want you to look up and have you know, 655 00:29:44,480 --> 00:29:46,760 Speaker 1: five hundred thousand dollars in cash sitting in the bank, 656 00:29:46,920 --> 00:29:48,600 Speaker 1: because sometimes it's not a very good use of our 657 00:29:48,600 --> 00:29:51,400 Speaker 1: money unless your emergency fund needed to be five hundred thousand, 658 00:29:51,400 --> 00:29:53,720 Speaker 1: which kudos to you if that's what your emergency funded 659 00:29:53,760 --> 00:29:55,960 Speaker 1: is to me, UM, but that's kind of how we 660 00:29:56,000 --> 00:29:57,640 Speaker 1: want to think about that. And then we automate that 661 00:29:57,680 --> 00:30:00,680 Speaker 1: through four own ks, you know, through ending up automatic 662 00:30:00,720 --> 00:30:03,840 Speaker 1: paint drafts, to i ra as, to a brokerage account, 663 00:30:03,920 --> 00:30:05,920 Speaker 1: or whatever your needs are. I don't know. Well, that's 664 00:30:05,920 --> 00:30:08,320 Speaker 1: where like, how do you know though? Is that just 665 00:30:08,440 --> 00:30:11,920 Speaker 1: dependent on each situation? It is? It is it comes 666 00:30:11,960 --> 00:30:14,200 Speaker 1: back to you know, those goals of window and retire, 667 00:30:14,240 --> 00:30:16,960 Speaker 1: how much income do I want? All those types of things. Um, 668 00:30:17,000 --> 00:30:18,840 Speaker 1: And it's it's not a plug you know for me, 669 00:30:18,960 --> 00:30:20,840 Speaker 1: but it's it's working with someone that can help you 670 00:30:20,920 --> 00:30:24,000 Speaker 1: number one identify those but then number two think through 671 00:30:24,000 --> 00:30:27,520 Speaker 1: those types of things early on. It's it's worth paying 672 00:30:27,520 --> 00:30:30,239 Speaker 1: for education. Um, I truly believe that. And that can 673 00:30:30,240 --> 00:30:32,240 Speaker 1: go to anything. That can go for self help, that 674 00:30:32,280 --> 00:30:34,640 Speaker 1: can go for health, that can go for fitness, that 675 00:30:34,680 --> 00:30:37,920 Speaker 1: can go for financial education. But sometimes you just don't 676 00:30:37,960 --> 00:30:40,320 Speaker 1: know what you don't know. And so you know, if 677 00:30:40,360 --> 00:30:43,520 Speaker 1: I think that I'm eating right because it says lean 678 00:30:43,600 --> 00:30:46,360 Speaker 1: ones on my box in the in the freezer, and 679 00:30:46,440 --> 00:30:48,160 Speaker 1: I want to be and I want to be lean, 680 00:30:48,640 --> 00:30:51,800 Speaker 1: well heck, this makes sense that there's like you know, 681 00:30:52,040 --> 00:30:54,320 Speaker 1: thirty nine times the amount of sodium and that thing 682 00:30:54,360 --> 00:30:56,280 Speaker 1: that I really need. Well, I wouldn't know that unless 683 00:30:56,520 --> 00:30:59,040 Speaker 1: either a I do the research online or be someone 684 00:30:59,080 --> 00:31:02,959 Speaker 1: goes you know, we lean woods don't exactly constitute a 685 00:31:02,960 --> 00:31:06,200 Speaker 1: healthy meal. Okay, tell me why. But now that I'm educated, 686 00:31:06,280 --> 00:31:08,240 Speaker 1: I know, and now I start looking at the nutrition 687 00:31:08,280 --> 00:31:10,000 Speaker 1: and all those types of things. The same thing with 688 00:31:10,040 --> 00:31:12,640 Speaker 1: your finances. You might be thinking, hey, you know what, 689 00:31:12,680 --> 00:31:14,520 Speaker 1: I've got a larger bank account that all my friends, 690 00:31:14,560 --> 00:31:17,760 Speaker 1: which I'm glad, but is it time to start investing 691 00:31:17,800 --> 00:31:19,440 Speaker 1: that money? And then where should it go and how 692 00:31:19,440 --> 00:31:21,560 Speaker 1: should it be invested and what is the risk tolerance 693 00:31:21,600 --> 00:31:24,080 Speaker 1: and what is the time horizon? And that's where professional 694 00:31:24,120 --> 00:31:26,840 Speaker 1: can really kind of help identify those things and can 695 00:31:26,840 --> 00:31:28,680 Speaker 1: guide you down a path to where you don't have 696 00:31:28,680 --> 00:31:30,520 Speaker 1: to be the smartest person in the room, just surround 697 00:31:30,560 --> 00:31:33,000 Speaker 1: yourself with some really smart people. Yeah. I think that's 698 00:31:33,080 --> 00:31:35,880 Speaker 1: huge because I think for me, at least, money stuff 699 00:31:35,960 --> 00:31:39,560 Speaker 1: is super uh intimidating. It's not the way my brain thinks, 700 00:31:39,600 --> 00:31:41,600 Speaker 1: like I know how to make money, but I don't 701 00:31:41,640 --> 00:31:43,280 Speaker 1: know what to do with it, or how much I 702 00:31:43,320 --> 00:31:45,240 Speaker 1: should be spending, how much of it should be saving. 703 00:31:45,600 --> 00:31:47,680 Speaker 1: And it really helps to sit down and just break 704 00:31:47,680 --> 00:31:49,360 Speaker 1: it down. I think it's also that thing of like 705 00:31:49,560 --> 00:31:51,800 Speaker 1: one step at a time, don't let yourself get too 706 00:31:51,800 --> 00:31:54,360 Speaker 1: overwhelmed with all of it all at once. Yeah, yeah, yeah, 707 00:31:54,400 --> 00:31:56,440 Speaker 1: if you you know, kind of look at the whole 708 00:31:56,480 --> 00:31:58,520 Speaker 1: forest tree example, just focus on the tree for right now. 709 00:31:59,120 --> 00:32:01,560 Speaker 1: The course will be made clear as your as you know, 710 00:32:01,680 --> 00:32:04,240 Speaker 1: time goes on and your education gets there. I know, 711 00:32:04,320 --> 00:32:07,840 Speaker 1: so I legally I can't do practice law. Legally, I can't, 712 00:32:07,920 --> 00:32:10,720 Speaker 1: you know, give people tax advice. Those are you know, 713 00:32:11,160 --> 00:32:14,160 Speaker 1: designated for c pas and attorneys. And so guess what, 714 00:32:14,280 --> 00:32:16,560 Speaker 1: I know a lot about that stuff. I hire that. 715 00:32:17,280 --> 00:32:19,120 Speaker 1: There's no way I want to touch that stuff because 716 00:32:19,160 --> 00:32:21,880 Speaker 1: I know that there's value in good quality. There's a 717 00:32:21,880 --> 00:32:23,880 Speaker 1: lot of advice out there, but we've got to find 718 00:32:23,880 --> 00:32:26,680 Speaker 1: good quality advice. So you know, I hire an attorney, 719 00:32:26,960 --> 00:32:29,240 Speaker 1: I hire a c P a UM, I have someone 720 00:32:29,280 --> 00:32:32,120 Speaker 1: do my home and auto coverage. I have a realtor. UM. 721 00:32:32,160 --> 00:32:33,720 Speaker 1: It'd be very easy for me to try to sell 722 00:32:33,760 --> 00:32:35,680 Speaker 1: my house, you know, on my own and cut out 723 00:32:35,720 --> 00:32:38,360 Speaker 1: that three percent. But guess what, I find value in 724 00:32:38,400 --> 00:32:41,040 Speaker 1: that advice. And I think that those people and having 725 00:32:41,120 --> 00:32:43,880 Speaker 1: that team around you can help you make far better 726 00:32:43,920 --> 00:32:45,760 Speaker 1: decisions than you could have done trying to piece it, 727 00:32:46,000 --> 00:32:47,840 Speaker 1: you know, on your O. My gosh, for sure, and 728 00:32:47,880 --> 00:32:49,400 Speaker 1: then it just frees. You have to focus on that. 729 00:32:49,440 --> 00:32:50,840 Speaker 1: I think, just what I want to focus on, I 730 00:32:50,840 --> 00:32:56,040 Speaker 1: don't want to focus on taxes now who does? Yeah, well, 731 00:32:56,040 --> 00:32:58,240 Speaker 1: this has been super helpful. I really feel like we 732 00:32:58,320 --> 00:33:01,560 Speaker 1: gave some really great answers to people. And I think 733 00:33:01,880 --> 00:33:03,760 Speaker 1: the biggest one that I walk away with and then 734 00:33:03,760 --> 00:33:05,640 Speaker 1: I know helped me in my life is like, just 735 00:33:05,720 --> 00:33:08,160 Speaker 1: tackle the debt first. Just really get rid of that, 736 00:33:08,280 --> 00:33:11,360 Speaker 1: especially like you're saying the seven eight percent, that's that's 737 00:33:11,440 --> 00:33:15,000 Speaker 1: that's high stuff. And automate, you got automate, automate paying 738 00:33:15,000 --> 00:33:17,880 Speaker 1: it off, the automate saving it. You know, you've got 739 00:33:17,880 --> 00:33:19,240 Speaker 1: to if you think about it, if you pull a 740 00:33:19,320 --> 00:33:21,320 Speaker 1: void out of your life, okay, you've got to put 741 00:33:21,400 --> 00:33:24,400 Speaker 1: something in that place. Okay. So you know, if you 742 00:33:24,400 --> 00:33:28,560 Speaker 1: were non financial example, if you're an addict and you 743 00:33:28,600 --> 00:33:30,480 Speaker 1: were always used to go into the bar on a 744 00:33:30,520 --> 00:33:32,160 Speaker 1: Saturday night and then all of a sudden you go, 745 00:33:32,200 --> 00:33:34,560 Speaker 1: I'm gonna stop you know, drinking or stop using drugs 746 00:33:34,640 --> 00:33:37,600 Speaker 1: or something, and you just stopped going. You gotta be 747 00:33:37,600 --> 00:33:39,880 Speaker 1: careful and you don't add anything in that place to 748 00:33:39,880 --> 00:33:41,520 Speaker 1: to fill it in. You're hanging out with good quality 749 00:33:41,680 --> 00:33:44,440 Speaker 1: relationships and all that kind of stuff. Same thing with finances. 750 00:33:44,480 --> 00:33:46,840 Speaker 1: So if you find that you have cleared up your 751 00:33:46,840 --> 00:33:48,840 Speaker 1: credit card debt, and and that five hundred bucks a 752 00:33:48,840 --> 00:33:51,040 Speaker 1: month that was going to credit cards is no longer 753 00:33:51,080 --> 00:33:53,800 Speaker 1: needed to go there. Let's go ahead that first month 754 00:33:53,880 --> 00:33:56,360 Speaker 1: that is paid off, and let's have that five automated 755 00:33:56,400 --> 00:33:59,680 Speaker 1: to savings. So you're not saying go shopping. You know, 756 00:34:00,160 --> 00:34:07,440 Speaker 1: maybe maybe I got understand our audiences. Okay, well Daniel, 757 00:34:07,480 --> 00:34:10,600 Speaker 1: where can people find you? Yeah? So we were located 758 00:34:10,640 --> 00:34:13,239 Speaker 1: in Tennessee, but we we also have a working a 759 00:34:13,320 --> 00:34:15,160 Speaker 1: lot of clients virtually, so we have clients all over 760 00:34:15,160 --> 00:34:17,839 Speaker 1: the country from you do do virtual because a lot 761 00:34:17,840 --> 00:34:19,799 Speaker 1: of people another thing was is how do I find 762 00:34:19,800 --> 00:34:22,239 Speaker 1: a good financial planner or someone who can help me? 763 00:34:22,320 --> 00:34:24,680 Speaker 1: So that's great to know that you can do it virtually. 764 00:34:24,760 --> 00:34:26,800 Speaker 1: It is it's kind of the old school way of thinking, 765 00:34:26,920 --> 00:34:28,840 Speaker 1: you know, through things is you know, I gotta go 766 00:34:28,920 --> 00:34:31,000 Speaker 1: to someone's office and sit across froom from the desk, 767 00:34:31,040 --> 00:34:33,200 Speaker 1: and that's fine. And we do have clients locally that 768 00:34:33,200 --> 00:34:35,040 Speaker 1: that comes see us and we love seeing them. But 769 00:34:35,080 --> 00:34:37,120 Speaker 1: we've got clients we've never met before, you know, that 770 00:34:37,120 --> 00:34:39,520 Speaker 1: are in different states. Um that we're just able to 771 00:34:39,600 --> 00:34:42,160 Speaker 1: identify goals. We do a lot of you know, screen sharing, 772 00:34:42,239 --> 00:34:44,680 Speaker 1: sessions and so it feels like you're still sitting across 773 00:34:44,680 --> 00:34:46,560 Speaker 1: the room and at the end of the day, desire 774 00:34:46,560 --> 00:34:48,000 Speaker 1: a good relationship with our clients. We want to make 775 00:34:48,000 --> 00:34:50,240 Speaker 1: sure that the process is fun and it's not something 776 00:34:50,320 --> 00:34:53,399 Speaker 1: that you know, they're daunted by and terrified and don't 777 00:34:53,400 --> 00:34:55,920 Speaker 1: want to talk about. You know, everything is on the table. Okay, 778 00:34:55,960 --> 00:34:58,960 Speaker 1: So it's Burke Financial Group. Do you have a website, 779 00:34:59,040 --> 00:35:02,040 Speaker 1: but it's Burke f G as in Financial Group dot com, 780 00:35:02,040 --> 00:35:04,200 Speaker 1: Burke f G dot com. All right, you guys, check 781 00:35:04,200 --> 00:35:07,320 Speaker 1: out Daniel and Burke Financial Group. And thank you for listening. 782 00:35:07,320 --> 00:35:10,359 Speaker 1: Thanks for you. This is Kelly Henderson and you've been 783 00:35:10,400 --> 00:35:14,040 Speaker 1: listening to the Velvet's Edge podcast. I truly believe that 784 00:35:14,160 --> 00:35:16,200 Speaker 1: every one of us has a little velvet and a 785 00:35:16,239 --> 00:35:19,040 Speaker 1: little edge, so it's so important to remember that to 786 00:35:19,120 --> 00:35:22,359 Speaker 1: be strong, you must be soft too. Thank you so 787 00:35:22,480 --> 00:35:25,040 Speaker 1: much for sharing in those stories with me. You can 788 00:35:25,040 --> 00:35:28,359 Speaker 1: follow Velvet's Edge on Instagram, Facebook, and Twitter, as well 789 00:35:28,400 --> 00:35:31,040 Speaker 1: as Velvet's Edge dot com. If you have it yet, 790 00:35:31,120 --> 00:35:35,040 Speaker 1: go to Apple Podcast and subscribe, rate and review this podcast. 791 00:35:35,480 --> 00:35:39,640 Speaker 1: Join me every Wednesday for more conversations on lifestyle, beauty 792 00:35:39,680 --> 00:35:41,800 Speaker 1: and relationships. Thanks for listening,