Speaker 1: It's time for the b a q a A. The
Speaker 1: b a q A what to say? The b a
Speaker 1: q A with Manday although she's out sick today, the
Speaker 1: b a q A with him today, the b a.
Speaker 2: Q a A.
Speaker 1: It is time for Brianna Vision Questions and answers. You
Speaker 1: have some questions, We have some answers. Well today is
Speaker 1: just me because maybe have the nerve to have lost
Speaker 1: her voice, honey. But I'll be the voice for both
Speaker 1: of us. So although we have some answers, I don't
Speaker 1: have all the answers.
Speaker 3: Right.
Speaker 1: I'm not your auntie, I'm not your mom, not your
Speaker 1: financial advisor, your attorney, but I am a smart brown
Speaker 1: girl when it comes to some money, career, business, etcetera.
Speaker 2: So we have a guest today on b a q
Speaker 2: A with day Shante.
Speaker 1: To be exactly, she's be a listener and she has
Speaker 1: a really great question.
Speaker 2: So we invited her. Come on.
Speaker 1: If you want to be invited to come on, and
Speaker 1: you know you don't do go head on to Branna
Speaker 1: Vision podcast, especially on Instagram. Leave us a voice note,
Speaker 1: like a message voice note. When you do that, our
Speaker 1: producer MANI will listen, and you know she might invite
Speaker 1: you on okay, just like you won't be like you
Speaker 1: know you do.
Speaker 2: Welcome Sante. How are you? I'm good and you I'm
Speaker 2: good good. Where are you from, Santa? I am from
Speaker 2: the West Coast. I think I put that in the message.
Speaker 4: I don't know why I had to go so hard
Speaker 4: for it, but I've been born and raised in California.
Speaker 1: Okay, Okay, West Coast Okay. So Sata, you have a
Speaker 1: question for me?
Speaker 2: What does that?
Speaker 5: My question is when it comes to emergency savings, should
Speaker 5: you be putting your emergency savings in a high deal
Speaker 5: savings account or should you invest it into ETFs?
Speaker 2: So, first of all, great question.
Speaker 1: I'll say this, So one, emergency savings is a safety
Speaker 1: net right, meaning that it is there to protect you
Speaker 1: in case of loss of income or in case you
Speaker 1: experience some sort of financial trauma or drama, to protect you.
Speaker 1: The purpose of savings is not to make you money.
Speaker 1: So I think that, like I want to like it's
Speaker 1: almost like and some people be mad at me when
Speaker 1: I talk about insurance, right, because you have like whole
Speaker 1: life which I'm like boom right, Because the purpose of
Speaker 1: insurance is not to make you money, is to protect
Speaker 1: your assets, so emergency now, because we confuse emergency savings
Speaker 1: with just money in general. Yes, we love our money
Speaker 1: to make money, but emergency savings is literally a safety net.
Speaker 1: So you don't want to put in a position not
Speaker 1: to be there to protect you. Right, So, if you
Speaker 1: put it in a high yield savings account like Allline
Speaker 1: Only Bank or whatever, as long as I only only
Speaker 1: bank is FDIC insured, meaning that you get your money
Speaker 1: back up to like two fifty if you if the
Speaker 1: bank should go under, then you can be pretty much
Speaker 1: assured that when you need this safety net, the money
Speaker 1: will be there. Now, the reason why we like high
Speaker 1: yield savings is because although the perfect purpose of savings
Speaker 1: is not to make you money, we don't want to
Speaker 1: lose so much to the inflation. You know, right now
Speaker 1: inflation is super on the high side, but back in
Speaker 1: the day, inflation was like two or three percent. Emergency
Speaker 1: savings accounts for yielding like you know, one or two percent,
Speaker 1: so you were basically net net even it was there
Speaker 1: ready for you in case.
Speaker 2: Of and emergency. I want you to think about this,
Speaker 2: like let's.
Speaker 1: Just say you're on a on a like a flight
Speaker 1: and the you know, like the air the mask comes down, right,
Speaker 1: So the purpose of like the air mask coming down,
Speaker 1: it's not for fashion, like girl, we're not looking turning looks,
Speaker 1: is to save you in the in the case of
Speaker 1: emergen Can you imagine like if you were like, but
Speaker 1: it would be cute if it was like, you know,
Speaker 1: giving a look or whatever. It's like, that's not the purpose.
Speaker 1: So like, so that so the reason that's why so
Speaker 1: I like ETFs. But the problem with putting your emergency savings.
Speaker 1: So let me, I always forget what like ETF stands
Speaker 1: for e TF, right, so at ETF, I always forget
Speaker 1: the name. I just could I just call them ETFs
Speaker 1: all the time?
Speaker 2: Right me? ETF is an exchange traded fund.
Speaker 1: So what that is is basically, it's a basket of investments.
Speaker 1: Typically it could be stocks, bonds, and some other investments. Right,
Speaker 1: It's a basket that is traded like a stock a
Speaker 1: mutual fund. The difference is just it's a basket, but
Speaker 1: it's not traded back and forth like a stock during
Speaker 1: the day. You can only buy mutual funds after the
Speaker 1: market is closed. You can buy it like you know,
Speaker 1: you can purchase a mutual fund, but it's not traded
Speaker 1: back and forth.
Speaker 2: So an ETF is almost like.
Speaker 1: A love child between a stock, which you can buy
Speaker 1: and sell all day, but it's one singular piece of
Speaker 1: a company and a mutual fund, which is a basket
Speaker 1: of stocks.
Speaker 2: You know, So at ETF is like.
Speaker 1: The love child between those two things because it's also
Speaker 1: a basket, but it could also be traded. Hold that
Speaker 1: thought before we continue. Let's go to break because you know,
Speaker 1: we got more to talk about and we're back. And
Speaker 1: what I what I do like about ETFs too, is
Speaker 1: that the more hands on someone is on the other
Speaker 1: side to help you manage that money, the more you're.
Speaker 2: Going to be charged. So i'll tell you what that means.
Speaker 1: Meaning then with a mutual fund, there is typically a
Speaker 1: person that is picking the fund, and that the so
Speaker 1: mutual funds the expense ratio, meaning the cost to invest
Speaker 1: is higher because there is somebody typically actively choosing the fund. Okay, right,
Speaker 1: so you have to pay more money because that person's like, oh,
Speaker 1: I need to get.
Speaker 2: Paid to this.
Speaker 1: ETFs are typically like electronically generated and so there is
Speaker 1: still an expense ratio. There's still there's still a cost.
Speaker 1: But because it's not this person picking it, the cost
Speaker 1: is less. And with stocks, it's you picking it, it's
Speaker 1: not a person behind the scenes. So oftentimes there is
Speaker 1: no expense ratio, There is no no, no fee for
Speaker 1: trading a stock except for, like, you know, whatever the
Speaker 1: platform is charging you. You see, the further way you
Speaker 1: get away from human intervention, the less and less money
Speaker 1: you pay to actually play.
Speaker 2: Does that make sense? It makes perfect sense, you know.
Speaker 1: And so I just say all that to say that
Speaker 1: I do want you to invest he but not with
Speaker 1: your emergency fund, because now that you've worn your face
Speaker 1: masks for fashion, the plane is going down. What you're
Speaker 1: gonna breathe with? You know what I mean. So it's like,
Speaker 1: so I, at the very least, what.
Speaker 2: You could do? Do you like, do you have an
Speaker 2: emergency fund? Do you have money set aside?
Speaker 5: Now?
Speaker 2: I sure do? Okay? Good.
Speaker 1: So what you might consider tay is say, once I
Speaker 1: get to three months, anything excessive over three months, I.
Speaker 2: Can invest, okay, or.
Speaker 1: You might say any depending on Now three months is
Speaker 1: the bare minimum, depending on how quickly you can replace
Speaker 1: your income if necessary. So like three months for a
Speaker 1: nurse is more than enough, three months for a teacher
Speaker 1: probably more than enough.
Speaker 2: Three months.
Speaker 1: For maybe an engineer, they might need six months. So
Speaker 1: whatever your bare minimum is that you would need months
Speaker 1: to replace your income. Once you get to that, then
Speaker 1: anything outside of that, absolutely you ought to invest it.
Speaker 2: Okay, that makes sense. Okay, it's hard sense, yes, right.
Speaker 1: So I just want you to I want you to
Speaker 1: visualize when you're like, oh man, this money's not making
Speaker 1: money for you. I want you to visualize someone walking
Speaker 1: down the street with their air masks from the airplane,
Speaker 1: turning a look. Meanwhile, someone's up in the sky, like
Speaker 1: I need my mask. Who took the mask from the plane?
Speaker 1: You know they want the stunt and now we need it, Like,
Speaker 1: you know, you don't want to take that money that
Speaker 1: you need. The purpose of emergency savings is protective. There's
Speaker 1: some money that's meant to earn, there's some money that's
Speaker 1: meant to grow, and there's some money that's.
Speaker 2: Meant to protect. And that's protective money. Okay, protecting money, Yeah,
Speaker 2: that's protecting money.
Speaker 1: Is there to protect you in the case of emergency
Speaker 1: at least three months, more and more if you feel
Speaker 1: more comfortable.
Speaker 2: But I will say it is possible to save too much.
Speaker 1: I think that's what you're thinking about, because there might
Speaker 1: be people who have five years worth to save.
Speaker 2: I'm just making that up. That's too much. That's too much.
Speaker 1: You know, once you get to whatever that thresholders, you're
Speaker 1: three months or six months. Anything above that, you're right
Speaker 1: that money is being wasted.
Speaker 2: And I have been there. I'm sorry.
Speaker 4: I just think like I have to switch my mind
Speaker 4: from like you said, it's not meant.
Speaker 2: To make you money, it's meant to protect you. I
Speaker 2: have to switch my mind to that.
Speaker 1: You know, it's like your warm winter coat versus your
Speaker 1: cute winter coat.
Speaker 2: Right, you're like, it's really gold out.
Speaker 1: Well, you wouldn't know because you're in California or whatever.
Speaker 1: It does get a little cold, right, But don't you
Speaker 1: have some things where you're like, this is my big, old,
Speaker 1: ignorant coat, where it's not about cuteness, it's just because
Speaker 1: it's cold out.
Speaker 2: And then I have like something else.
Speaker 1: It's like it don't really keep me warm, but it's
Speaker 1: really so I could be cute when I go out.
Speaker 4: Yes, like I got the jacket I would buy versus
Speaker 4: the jacket my mama brought me exactly.
Speaker 1: So I want you to be like, this money is
Speaker 1: saving that's my mama bought jacket.
Speaker 2: Right, It's like, all right, this is.
Speaker 1: My responsible you know, and anything above that then I
Speaker 1: can start looking at jackets that I'm purchasing for myself.
Speaker 2: Okay, So just like you know, yeah, that's really good. Okay, good?
Speaker 2: Well was it helpful?
Speaker 5: Yeah?
Speaker 2: It was so much like I'm wanted to change my
Speaker 2: whole game plan. So thank you. Good, I appreciate it.
Speaker 5: Good.
Speaker 2: Now you're welcome.
Speaker 3: I talked to you though, because oh my god, I
Speaker 3: cannot wait.
Speaker 2: I will tell you mom, what's your mom?
Speaker 1: You bet?
Speaker 2: What's her name? Help woe.
Speaker 1: Over here to ask you a good, smart and relevant
Speaker 1: financial question.
Speaker 2: You did a good job to Sevet. Oh she'd let
Speaker 2: me hear that.
Speaker 5: So thank you so much.
Speaker 2: I appreciated so much.
Speaker 3: Here we go, bye bye, Hey ba fan, we could
Speaker 3: not do this show without your support or the support
Speaker 3: of our team behind the scenes. The Brown Emission Podcast
Speaker 3: is produced by Cumulus Podcast Network. It's edited by the
Speaker 3: wonderful Emani Crosby and produced by Tanya Bustos. Dennis Stimplinsky
Speaker 3: is our in house tech guru, and I am Bandy
Speaker 3: Woodrid Santos your co host, and I will see y'all
Speaker 3: next week,