WEBVTT
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Hey, my friends.
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Welcome to a conversation with Matthew Sanchez, the podcast produced and created by MSW Productions.
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Ladies and gentlemen, I have today with me a financial, I consider him a financial expert.
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And today's topic is why does$100 not feel like$100 anymore?
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Because I think whether you're married, single, or you're a working mother, working father, and you're making money, for some reason, something's happening here, and we're having troubles.
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Not all of us, but there are some of us who are having troubles to get to a stable place.
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So I have called upon the finance expert, Quincy Wade.
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Are you related to any like the famous?
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Okay.
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No relationship.
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Okay, not related to him.
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Okay, just making sure.
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But you've been in the finance world for how long?
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I've been in the finance service industry for over 25 years.
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25 years.
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Yes.
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And you told me off cameras that um you had to find something to do, and this is what you was gonna do.
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Exactly.
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Exactly.
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I couldn't work with my hands.
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My dad said two left hands.
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So what can I do?
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And so now you got into this world.
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Exactly.
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And tell me this.
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Tell me what have you learned the most being in this um industry?
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What I've learned the most is that, you know, people they have all different types of backgrounds, you know, when it comes to like personal finance.
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Some people they saw their parents sitting down doing budgets.
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Some people they never saw that, you know.
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So you can see how that carries on, you know, with how people handle their current finances from day to day, whether they're exposed to it like early on in life.
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Where are you from, Quincy?
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Well, I was um born in Albany, Georgia.
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Come on.
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Um raised in raised in Newport, News, Virginia.
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Okay.
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Folks in the military, so I kind of bounced around a little bit.
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Wow.
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How did you end up here in Columbus?
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By way of military.
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Oh, okay.
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So you just stayed.
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You guys just stayed.
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Well, end up staying.
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Um, folks wanted to move closer, you know, to Albany, but they didn't want to go directly to Albany.
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I guess be close enough.
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Yeah.
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We can sit there on the weekend and do what we need to do.
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You see family and everything like that.
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Oh, only child, I got brothers and sisters, or what?
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I'm the oldest out of six.
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Crazy thing about it, um, I'm way older than most of my uh younger siblings, correct?
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You're the tallest out of the city?
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I am the tallest.
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When you when he came into that, I'm telling you, I said, Why didn't I expect you to be this tall?
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It's like you said you're 6'5.
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6'5 when I'm standing up straight.
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Woo! Wow.
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Okay, let's get into let's get into it because um my heart has been leaning towards individuals who need help with money.
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And um I think anytime we talk about money, people always get either tense, they get nervous, some of them get excited because uh they're they're called to talk about money and that God has called them to do such a thing.
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Uh, and some people just get like, well, I don't even want I don't even want to touch it, I don't even want to worry about it.
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So for my first, I have some questions here.
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Okay.
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I prepared you.
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Yes.
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So you know the questions.
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Um, but let's answer the title question first.
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Why doesn't$100 go as far as it used to be?
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I'm glad you asked that question.
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One reason I said I remember way back when, you know, you used to be able to go to the grocery store with$100, you know, get some groceries, and you push around a cart.
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And you feel like you accomplished, you feel like you accomplished something.
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Now, fast forward to today's time, same$100, same dead president on that$100 bill.
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Nothing's changed.
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Right, right.
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But the purchasing power has changed.
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You know, um, now you spend$100, you get a few, a few eggs, you know, a little meat, a little groceries.
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Yeah.
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You look at that bill and you're like, who robbed me?
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That's right.
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That's right.
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That's right.
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And now instead of pushing the cart to the car with your groceries, you're walking out with everything in two hands.
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So, so that talks to us about something that's called inflation.
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You know, um, I call it the silent income killer because oftentimes you don't see it creep up on you.
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It comes in slowly.
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And if your your income doesn't, you know, increase as fast as the expenses, now you're losing purchasing power.
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So the dollar that you spent yesterday doesn't spin the same way today, you know, because inflation, the cost of things are going up, and that's why$100 does not spend the same as it used to.
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And why how how is it that Americans can work a full-time job and still struggle to make ends meet?
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Most of that, that's a good question as well.
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Because basically, you know, um, working hard and getting ahead financially is two totally separate different things.
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You know, people work 40, 50, you know, 60 hours per week and they're still struggling.
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You know, um, a lot is attributed to like housing costs, you know, that's gone up, food costs, health care.
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You know, a lot of people are feeling that healthcare right about now, you know, um uh things are just increasing in prices.
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And not only that, you know, um people um are not managing their cash flow, you know, properly.
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You know, because money comes in, but money comes out, people are not really looking at what exactly they're um they're spending their money on.
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And I attribute this to a lot of different things, you know, uh social media.
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Yep.
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That's one.
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Yeah.
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You know, people see somebody doing um vacation, you know, they they want that vacation, you know, they want that clothes, they want that car, you know, they want those different items.
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And I think that's what's kind of like um holding people back.
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At what point does family finance struggles become more than just a budgeting problem?
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Exactly.
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At what what point is that?
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So basically, once you've uh kind of eliminated all your unnecessary expenditures, and once you've, you know, um got rid of the subscriptions you don't need, things like that, and you can't afford your necessities, your basic things of life.
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I always tell people take care of your four walls.
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You know, you want to take care of your housing, you want to take care of your utilities, food, and transportation.
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Those are the main things that keep the household going.
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And if you can't afford these basic necessities, that's how you know it's more than just a buzzing problem, it's an income problem.
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And you can't budget your way out of an income problem.
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What do you mean by that?
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So basically, what that means is that if it's an income problem, you need to look at pretty much um trying to identify ways to earn an extra additional income.
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Okay, okay, I see what you mean.
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Maybe switching jobs, switching careers, um, getting a skill set, you know, maybe community assistance.
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You just need extra help, you know, when it comes to that point.
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And that's why I say you can't budget your way, but however, a budget will help you identify the problem, whether it's a cash flow management problem or if it's an income problem, the budget will help you identify that.
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And what's the best way to budget?
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Best way to budget.
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Yeah.
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Well, what's the best way?
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How do how do I how do I know where to start when I want to start a budget?
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Exactly.
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You want to start.
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I always when I when I coach people, I always tell them about the zero-based budgeting.
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Okay.
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Um, zero-based budgeting just means that you account for every dollar.
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It doesn't mean your checking account goes to zero.
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It just means basically you sit down, you'll tell each dollar where it's going, where it's going.
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Okay.
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Remember, I said first you go take care of those four, those four walls.
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Right.
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You go set aside for utilities, things of that nature.
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This is for utilities, this for transportation, gas, so on and such forth, this for groceries.
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So you're telling every dollar where to go, savings, so on and such forth, until you have everything accounted for.
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And I like teaching people that because that way you're able to identify unnecessary spending.
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And you can find margin, I call margin in your budget.
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That's um finding extra money that you can use to allocate somewhere else to help you build wealth, okay, eliminate debt, okay, so on and so forth.
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Okay.
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And how much should I set aside?
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Let's say, like, let's say my car payment is like$350 a month, and I'm and I'm I'm pushing a goal to eventually pay that off.
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But I'm only spending, I'm I'm only gonna give that, I'm only gonna give$350 a month.
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Should I give more to continue to but then if I give more, then something else is lacking because I'm trying to pay this off.
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Does that make sense?
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That makes sense.
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Yeah, so how do I how do I how do I budget in a way that I can start paying things off and so that it won't be such a big load at the end of the month to pay off and I have nothing to spend?
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Does that make sense?
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That's right.
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Yeah.
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So pretty much what you need to do is um list all your debts out from smallest balance all the way to the largest balance, not including the mortgage.
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Do not include the mortgage in this.
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And then you're gonna pay the minimum on every single thing, every single item on there.
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And we do your zero-based budgeting.
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Remember, I told you about margin.
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Yes.
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You're able to eliminate things.
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Yes.
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You're able to find extra money, and we find that extra money, you could take that extra money and apply it towards that smallest debt.
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Then we probably think to that smallest bet, you tack it with every all your intensity.
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Give me an example.
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Give me an example.
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All right, so let's say you have a debt, you have a uh your car, let's say, let's start with something small.
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Let's say you have a credit card balance that has like a$1,000 balance, you have um a car that has$5,000 left on it, and let's say you have a uh$10,000 um personal loan.
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So what you'll do is you'll attack that$1,000 debt first.
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So let's say you're paying uh$200 a month towards that$1,000 debt.
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Once you wipe out that$1,000 debt, you're gonna take that$200 and you're gonna add it to the next debt.
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You know, so that'll be that um that uh that car loan we talked about with$5,000.
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So you're paying$350 on it, now you can add that$200, now you're paying$550 towards it.
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Okay, I see.
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And roll it down, snowball.
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Okay, that makes a lot of sense.
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Because eventually you can you'll pay it off.
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You'll pay it off in a fraction of the time.
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Most people, when they do that strategy, you're able to wipe out most of your debts within the next, usually it's like 24 months, 24 to 36 months.
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You have all that debt wiped out.
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Wow.
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Okay.
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So, in so many words, what just saying is you just add a little more every time.
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Exactly.
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A little more every time.
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So don't pay to just a$350 for the car, no, just pay a little bit more every time.
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Every time.
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Okay, wow, that makes a lot of sense.
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If someone only has$100 left until the next paycheck, how should they decide what to do with that hundred dollars?
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First of all, don't panic.
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Don't panic.
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Yeah, yeah.
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So we're gonna make sure we base our decisions off of priorities, you know, not emotions.
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Okay.
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You know, so so that last hundred dollars, that's not for entertainment.
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This this is for survival.
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Okay.
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You know, you want to make sure you have that money, um, whether it's set aside for like get gas or go to work, you gotta go to work.
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Right.
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And how much should I spend for gas if it's only$100?
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It's gonna be a feel.
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You know, everybody knows kind of like how much you need to last you, like until the next kind of like payday.
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Okay, so you know, you know, you know.
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You know, because like sometimes people like, I just need to put$20 in there, you know, um, just to last me until I get paid a couple days later.
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Yes, yes.
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You gotta have that feeling of how much you need, you know, in terms of being able to do that.
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So don't panic.
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Don't panic.
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What else should I do?
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So also um if it's like something that's dire needs, you know, I know uh the uh there's there's different resources out there, you know, um food banks, you know, if you need to get food, you know, um, because that's a necessity.
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You have to have food.
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Right.
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Um look for the community resources.
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Um, don't be afraid to ask for help, you know, when help is um needed.
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Don't feel embarrassed about it because everybody needs uh a hand every now and then.
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Yeah, I think that's one of the biggest problems, too, quits, is that when people, uh there are people who only have$100 left in their paycheck, um, they don't want to ask for help because asking for help makes you look weak.
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That's right.
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And nobody wants to look weak, especially um if you live in this generation.
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Uh everybody wants to, everybody wants to appeal like they know what they're doing and they got it all forgot.
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But you don't.
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You don't.
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Yeah.
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It's it's they say uh pride, you know, and what pride, it says pride um comes before destruction.
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Right.
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And haughty spirit before the fall.
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So don't let pride hold you back.
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Right.
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What's one financial habit that could completely change someone's situation over the next year?
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All right.
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One financial habit um that can change somebody's um behavior next year, number one, as I mentioned before, zero-based budget.
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Number two, um, another, I know it's more than one habit, but another habit you can do is um a lot of people don't realize this.
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IRS.gov has stated that over 80% of people, you know, um fill out their W4s incorrectly at their jobs.
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So they're over withholding in taxes.
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Really?
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Right?
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Exactly.
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So that means you're missing some money out.
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You're missing some money out.
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Wow.
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And what people don't realize is on the IRS website, there's a calculator on there that tells you exactly you bring, you have your most recent pay sub with you, and you go answer all the questions and tells you exactly how much you need to withhold.
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Prints off the W4 for you that you give to your employer.
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But just by doing that, a lot of people are able to increase their take-home income every single month, an additional$200 to$300 to$500 per month.
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Wow.
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Without working extra hours, without asking for a pay raise.
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Wow.
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Why do people do it incorrectly?
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Why do they not know how to do it?
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Just don't know.
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A lot of people just don't know.
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Um, average tax refund is over$3,000.
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That means you're just giving an uh interest-free loan to the government and that money actually goes back into your pocket.
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And they won't tell you about it.
00:13:41.919 --> 00:13:42.320
Just don't know.
00:13:42.399 --> 00:13:44.559
Yeah, you gotta read the information out there.
00:13:44.639 --> 00:13:44.799
Wow.
00:13:45.919 --> 00:13:46.799
Oh, wow.
00:13:47.200 --> 00:13:56.480
How do people end up in thousands of dollars in debt and then you ask them how they got there and they don't know how they got there?
00:13:56.799 --> 00:13:58.080
How does that happen?
00:13:58.320 --> 00:13:59.039
Exactly.
00:13:59.200 --> 00:14:01.039
Uh, one payment at a time.
00:14:01.440 --> 00:14:02.399
That's how you get there.
00:14:02.559 --> 00:14:03.120
That's how.
00:14:03.360 --> 00:14:08.480
You see, um, most people don't wake up one morning and say, you know, I want to, I want, I want$50,000 in debt.
00:14:08.559 --> 00:14:08.879
Uh-huh.
00:14:09.200 --> 00:14:10.720
No, it happens gradually.
00:14:11.200 --> 00:14:12.960
Happens slowly over time.
00:14:13.279 --> 00:14:16.799
You know, you go to that furniture store and you're like, um, oh, I like this furniture set.
00:14:17.200 --> 00:14:18.879
And they say, you know, we can make this affordable.
00:14:19.200 --> 00:14:21.440
All you have to do is pay$99 a month.
00:14:21.919 --> 00:14:23.679
They don't tell you what the interest rate is.
00:14:23.919 --> 00:14:25.039
They don't tell you how long.
00:14:25.279 --> 00:14:27.919
All you think is That$99 a month.
00:14:28.080 --> 00:14:28.799
I can afford that.
00:14:28.879 --> 00:14:29.039
Yeah.
00:14:29.840 --> 00:14:30.639
So it's gradual.
00:14:30.720 --> 00:14:31.759
So it sneaks up on you.
00:14:31.840 --> 00:14:36.639
And then eventually, after you before you know it, you got$30,000,$40,000 in debt.
00:14:37.600 --> 00:14:38.320
Little out of time.
00:14:38.720 --> 00:14:43.360
It's almost like there's a it's almost like it's a a scam to it almost.
00:14:43.440 --> 00:14:49.360
It makes you feel like it's somebody robbing you because they don't tell you the interest rate on no stuff and they don't tell you all the stuff you need.
00:14:49.440 --> 00:14:53.679
And then by the time you're in debt, you're already, you're already down the hole.
00:14:54.240 --> 00:14:54.799
You know what I'm saying?
00:14:54.960 --> 00:14:55.360
Exactly.
00:14:55.519 --> 00:14:56.320
Why is that like that?
00:14:56.399 --> 00:15:04.000
Why don't people well you probably can't answer that, but what what what's the best way, if you're at a franchise store, to get?
00:15:04.240 --> 00:15:07.120
Do you do you get the most expensive one or do you get the one you can afford?
00:15:07.200 --> 00:15:11.759
Do you get one that you know that you could pay for it two times if you had that makes sense?
00:15:11.919 --> 00:15:12.320
That makes sense.
00:15:13.519 --> 00:15:14.559
What's your advice about that?
00:15:14.799 --> 00:15:18.240
I would say a lot a lot of times immediate gratification gets you in trouble.
00:15:18.879 --> 00:15:19.600
When it comes to money.
00:15:19.759 --> 00:15:22.159
When you want it instantly, you know, right there on the spot.
00:15:22.799 --> 00:15:24.960
Um, I like how they did it back in the day.
00:15:25.120 --> 00:15:27.039
You know, if they wanted some, you saved for it.
00:15:27.519 --> 00:15:30.480
You know, so people need to save for the things that they want.
00:15:30.559 --> 00:15:33.360
They don't have to always necessarily put everything on credit.
00:15:33.679 --> 00:15:34.879
You know, you don't have to do that.
00:15:35.200 --> 00:15:42.879
You know, um, and also, like you just mentioned, get things that are affordable, things that are within your, you know, um, things that you can handle financially.
00:15:43.120 --> 00:15:46.720
Well, what give me an example of what's affordable in terms of the couch analogy?
00:15:46.960 --> 00:15:47.279
That's right.
00:15:47.679 --> 00:15:48.559
Give me an example.
00:15:48.799 --> 00:15:55.919
So I what I think is affordable is something that you, if you do um finance it, like I think a furniture, something you can probably pay off within 12 months.
00:15:56.320 --> 00:15:56.399
Okay.
00:15:56.559 --> 00:15:59.200
You know, but if it's something that's gonna take you three, four years to pay off.
00:15:59.440 --> 00:15:59.919
Don't do it.
00:16:00.080 --> 00:16:00.720
Don't do it.
00:16:01.120 --> 00:16:09.759
You know, um, and you want to pay it off as fast as possible because when you pay things off fast, you don't really realize that that interest, the high interest on there.
00:16:09.919 --> 00:16:11.440
This is what I want people to understand.
00:16:11.600 --> 00:16:14.320
I want them to understand the game that we're playing.
00:16:14.399 --> 00:16:16.159
This is finances, this is real life.
00:16:16.320 --> 00:16:16.559
Yes.
00:16:16.720 --> 00:16:21.440
You know, when you first get your paycheck, what's the first thing that comes out before it even gets to you?
00:16:21.519 --> 00:16:22.799
What before it gets to the net?
00:16:22.960 --> 00:16:23.440
Taxes.
00:16:23.679 --> 00:16:24.240
Taxes.
00:16:24.639 --> 00:16:28.000
The first third of your money is going straight to taxes, right?
00:16:28.480 --> 00:16:31.759
The second third of your money is going to expenses.
00:16:32.480 --> 00:16:33.840
That's things you can't pay off.
00:16:33.919 --> 00:16:35.360
You can't pay off a cell phone bill.
00:16:35.840 --> 00:16:38.960
You know, you can't pay off, you know, um, your electricity bill.
00:16:39.120 --> 00:16:39.919
You can't pay off rent, yeah.
00:16:40.639 --> 00:16:42.480
You're gonna pay month after month, yeah after year.
00:16:42.639 --> 00:16:42.799
Right.
00:16:43.039 --> 00:16:47.279
And then the last third of your money is going towards what I call big business.
00:16:47.759 --> 00:16:48.000
Right.
00:16:48.080 --> 00:16:49.840
So people are, what is big business?
00:16:50.000 --> 00:16:55.759
You know, every time you log on to the website and you see these ads popping up advertising to you, that's big business.
00:16:56.320 --> 00:17:00.960
And big business, you know, that kind of sneaks up on you too, because think about it.
00:17:01.200 --> 00:17:05.200
Every single month out of the year, there's something to celebrate.
00:17:05.680 --> 00:17:11.599
You know, you think there's a holiday, there's January, New Year's, or a birthday, and then all that.
00:17:11.680 --> 00:17:14.799
I want to, you you can name, you go through the month, you'll name a holiday.
00:17:14.880 --> 00:17:16.559
And those things kind of sneak up on you.
00:17:16.640 --> 00:17:18.480
You feel guilty for not buying things sometimes.
00:17:18.720 --> 00:17:20.240
No, you didn't buy a Valentine's Day gift.
00:17:21.200 --> 00:17:22.319
You feel guilty about it.
00:17:22.960 --> 00:17:25.519
That's part of that's part of the game.
00:17:25.920 --> 00:17:31.440
And I'm not telling you not to do things like in terms of that regards, but just understand the game that you're playing.
00:17:31.599 --> 00:17:35.200
So you won't overspend and put yourself in a situation, financial situation.
00:17:35.599 --> 00:17:36.880
How do I beat the game?
00:17:37.200 --> 00:17:41.119
The way you beat the game is pretty much you gotta know how to play the game, right?
00:17:41.440 --> 00:17:53.599
And what I what I just mentioned is how you play the game, just understanding, you know, um, what's coming in and what's coming out of your pockets, you know, um look for things that you uh don't need before, like in your budget.
00:17:54.079 --> 00:17:59.200
Remember, I mentioned um, I always tell people, you know, pull at least uh two to three months worth of statements.
00:17:59.519 --> 00:18:10.480
So you want to pull two to three months' worth of statements, get a highlighter and start highlighting things, the eating out, you know, those subscriptions that you haven't used in 30 days that you don't need.
00:18:10.640 --> 00:18:16.079
That you don't need and learn how to strategically be intentional with your money.
00:18:16.319 --> 00:18:26.799
Are credit cards helping Americans build financial security or are they keeping them more in debt?
00:18:27.200 --> 00:18:27.519
Okay.
00:18:27.920 --> 00:18:28.960
Good question right there.
00:18:29.119 --> 00:18:30.240
Here's how I look at it.
00:18:30.480 --> 00:18:35.599
You know, credit cards, they're financial tools, you know, um, and they have the pros and they have the cons.
00:18:36.240 --> 00:18:44.400
But there are also very easy ways for you to get yourself into trouble if you're carrying balances month after month, year after year.
00:18:45.039 --> 00:18:49.599
You know, because sometimes you're just thinking, you know, I can I can afford this, I just put it on the card.
00:18:50.000 --> 00:18:55.599
And you know, uh, and next thing you know, how we mentioned a little bit earlier, it gets becomes a large balance.
00:18:56.079 --> 00:18:57.599
It becomes uncontrollable.
00:18:58.400 --> 00:19:04.160
And what I mean by uncontrollable, like a debt, is that you don't know when it'll be paid off.
00:19:04.319 --> 00:19:05.039
Yeah, I see.
00:19:05.200 --> 00:19:09.680
If you don't have a time frame or date and when that's gonna be paid off, that's how you know it's a problem.
00:19:09.839 --> 00:19:16.960
So when you're going out and about and you're buying gas, you know, you're buying groceries, things of that nature, and you're putting your debit card in the machine.
00:19:17.279 --> 00:19:19.920
If I'm not using cash, I'd rather use a credit card.
00:19:21.200 --> 00:19:24.400
Three reasons why I'd rather use a credit card for that.
00:19:24.799 --> 00:19:29.519
Um, number one, you know, I'm keeping my credit going in case somebody needs it, you know.
00:19:29.680 --> 00:19:29.920
Okay.
00:19:30.240 --> 00:19:31.279
So keeping it going.
00:19:31.599 --> 00:19:35.119
Number, now I'm paying my interest, I'm paying my balances off every single month now.
00:19:36.480 --> 00:19:43.359
Number two, um, a reason is that, you know, I like to get cash back or rewards, things of that nature.
00:19:43.599 --> 00:19:43.759
Okay.
00:19:44.079 --> 00:19:44.400
All right.
00:19:44.559 --> 00:19:46.480
Number three is from a security perspective.
00:19:46.960 --> 00:19:52.400
So I ask this question, you know, it's not a matter of if it's gonna happen, but it's when it's gonna happen.
00:19:52.480 --> 00:19:54.240
Because cars get compromised all the time.
00:19:54.720 --> 00:19:58.319
I'm quite sure all of you guys have experienced a compromised car before.
00:19:58.799 --> 00:20:05.200
So the question is, would you rather be the institution's money tied up or your personal account tied up?
00:20:06.000 --> 00:20:08.160
I'd rather to be the institution.
00:20:08.400 --> 00:20:08.720
Right, right.
00:20:08.880 --> 00:20:13.599
Because no, sometimes you can file claims and things of that nature, but it doesn't always happen overnight.
00:20:13.759 --> 00:20:14.000
Sure.
00:20:14.240 --> 00:20:14.960
It can take time.
00:20:15.200 --> 00:20:15.440
Sure.
00:20:15.599 --> 00:20:20.960
So that's why I say it could be a tool, but know exactly when you can pay it off.
00:20:21.119 --> 00:20:22.559
That means it's under control.
00:20:22.880 --> 00:20:26.720
And that's how you know if you can do that, that's how you know a credit card is for you.
00:20:26.799 --> 00:20:30.079
If you can't do that, if you can't control yourself, that is not for you.
00:20:30.319 --> 00:20:37.119
What do you think of financial mistake that people make in their 20s that they still have to pay for in their 40s?
00:20:37.839 --> 00:20:40.480
I know many people have run into the same issues.
00:20:40.640 --> 00:20:41.039
Really?
00:20:41.279 --> 00:20:48.240
But trying to look successful, hence where trying to look successful before becoming financially successful.
00:20:48.400 --> 00:20:49.359
I see, I see.
00:20:49.519 --> 00:20:50.799
So, so listen, right here.
00:20:50.880 --> 00:20:57.440
So somebody graduates from college, you know, uh, they get their uh they get a decent paying job, right?
00:20:57.519 --> 00:20:59.759
And um immediately they want to buy a luxury car.
00:20:59.920 --> 00:21:00.160
Right.
00:21:00.319 --> 00:21:01.680
You know, they want to be like mom and dad.
00:21:01.759 --> 00:21:01.920
Right.
00:21:02.160 --> 00:21:04.160
But they don't know what mom and dad had to do in order to get there.
00:21:04.480 --> 00:21:05.279
To sacrifice, right.
00:21:05.440 --> 00:21:06.400
The sacrifice part.
00:21:06.640 --> 00:21:10.799
They get an expensive apartment, the design of clothes, and lifestyle.
00:21:10.960 --> 00:21:17.119
You know, but the thing is, you know, um, there's nothing wrong with one of the nice things, but timing matters.
00:21:17.680 --> 00:21:22.319
You know, so early on when you're in your 20s, you want to make sure you're building yourself a proper foundation.
00:21:22.799 --> 00:21:24.559
Get the foundation built right first.
00:21:24.640 --> 00:21:24.960
Right.
00:21:25.200 --> 00:21:29.359
Because um a how I mean a house built on um a bad foundation can't stand.
00:21:29.440 --> 00:21:29.599
Right.
00:21:29.759 --> 00:21:30.480
It's gonna fall.
00:21:30.720 --> 00:21:30.880
Right.
00:21:31.039 --> 00:21:32.400
Same thing with your financial house.
00:21:32.480 --> 00:21:37.039
You want to make sure you build on a proper foundation, you know, um, and make sure you're stable.
00:21:37.279 --> 00:21:40.960
And stop trying to look rich when you ain't rich.
00:21:41.200 --> 00:21:41.440
Exactly.
00:21:41.680 --> 00:21:44.079
My grandma said you ain't got the pot to piss in.
00:21:44.480 --> 00:21:45.680
That's right, that's right.
00:21:46.000 --> 00:21:46.559
That's right.
00:21:46.799 --> 00:21:47.279
Yeah.
00:21:47.440 --> 00:21:54.240
So so how do I begin in my 20s to build that stable uh financial house?
00:21:54.400 --> 00:21:55.200
How do I do that?
00:21:55.279 --> 00:21:56.240
What do I do?
00:21:56.480 --> 00:21:59.519
It begins with starting with good habits, okay, you know.
00:21:59.599 --> 00:22:02.640
Um And oftentimes, you know, these things aren't taught in school.
00:22:02.799 --> 00:22:05.200
Oftentimes, I know I'm here in Columbus, they're starting to do that.
00:22:05.359 --> 00:22:07.519
Um, so that's that's that's that's a plus.
00:22:07.759 --> 00:22:08.000
Right, right.
00:22:08.160 --> 00:22:10.000
That is a plus, but it's not done everywhere.
00:22:10.400 --> 00:22:16.480
You know, people they teach you geography, you learn about um algebra, you learn about mathematics, but nobody teaches you about personal finance.
00:22:16.720 --> 00:22:18.720
And when you say good habits, what are those habits?
00:22:18.880 --> 00:22:26.000
So good habits is um good thing is um when you get paid, sit down, you know, and tell your money where to go.
00:22:26.160 --> 00:22:27.839
Be intentional about it.
00:22:28.319 --> 00:22:31.039
And when you do that, you make better financial decisions.
00:22:31.279 --> 00:22:33.119
You're not basing it off emotions.
00:22:33.440 --> 00:22:34.880
You know, emotions get you in trouble.
00:22:35.519 --> 00:22:42.720
So, what I hear you saying as a financial expert is that um saving is the way to go.
00:22:42.799 --> 00:22:52.079
And what kills people in financial crisis, uh, what gets them there is because they have they want instant gratification.
00:22:52.319 --> 00:22:52.559
Exactly.
00:22:52.640 --> 00:22:54.240
That's the hardest thing.
00:22:54.400 --> 00:22:56.000
And they don't know how to get themselves out.
00:22:56.240 --> 00:22:56.799
Exactly.
00:22:57.200 --> 00:22:57.680
Exactly.
00:22:57.920 --> 00:23:08.799
Okay, let's talk about marriage and finance because this is probably one of the most talked about things um when it comes to marriage.
00:23:08.960 --> 00:23:13.759
It's more probably one of the most important things you should talk about in a marriage.
00:23:14.559 --> 00:23:21.839
How can two people love each other deeply but still struggle in finance?
00:23:22.000 --> 00:23:22.720
How does that work?
00:23:22.799 --> 00:23:29.440
How does that that's because um love, you know, doesn't automatically create financial compatibility.
00:23:30.079 --> 00:23:31.599
That's gonna be the first thing right there.
00:23:31.920 --> 00:23:40.079
You know, you can have two people who genuinely, genuinely, you know, like love each other, but they were raised two completely different ways.
00:23:40.720 --> 00:23:43.759
In terms of they have two different relationships with money.
00:23:44.000 --> 00:23:44.319
Exactly.
00:23:44.480 --> 00:23:45.599
Okay, exactly.
00:23:45.920 --> 00:23:51.359
How how do they how do they come together as one and get on one accord with money?
00:23:51.440 --> 00:23:52.319
How do they do that?
00:23:52.640 --> 00:23:57.519
It's gonna be a blend, give and uh give and take, both of them, you know.
00:23:57.680 --> 00:24:03.920
Um, because you have one, some person that's a natural saver, you know, what they're gonna bring, they're gonna bring discipline to the household, right?
00:24:04.319 --> 00:24:14.640
So that person that's a natural spender, you know, what they're gonna do is they're gonna bring excitement, you know, um, to enjoy life, you know, because you want to budget to a point where you can't enjoy life.
00:24:14.799 --> 00:24:15.279
Right, right.
00:24:15.359 --> 00:24:15.519
Right.
00:24:15.680 --> 00:24:20.720
So it's it's a it's a good blend for both of them to come together because there's always gonna be one spender, right?
00:24:20.880 --> 00:24:23.359
And there's always gonna be one natural saver in most relationships.
00:24:23.519 --> 00:24:24.079
Right, right.
00:24:24.319 --> 00:24:34.480
As a finance expert, should married couples have separate bank accounts or they have the same bank account or a little bit of both?
00:24:34.720 --> 00:24:35.039
That's right.
00:24:35.359 --> 00:24:36.319
What should they do?
00:24:36.640 --> 00:24:40.240
I believe um that they should have joint accounts.
00:24:40.400 --> 00:24:41.200
A joint account.
00:24:41.359 --> 00:24:43.200
If you ask me, I say joint account.
00:24:43.359 --> 00:24:43.599
Why?
00:24:43.680 --> 00:24:45.519
Why is that beneficial for the marriage?
00:24:45.680 --> 00:24:48.880
Because I think it's foundational, you know, because a marriage you're coming together.
00:24:49.039 --> 00:24:49.279
Okay.
00:24:49.440 --> 00:24:50.400
You know, you're not doing that.
00:24:50.559 --> 00:24:54.000
So it has nothing to do with finance, it has everything to do with togetherness.
00:24:54.240 --> 00:24:54.799
Togetherness.
00:24:54.960 --> 00:24:55.200
Okay.
00:24:55.440 --> 00:25:00.079
Every couple should have a weekly meeting, you know, when it comes to going over their finances.
00:25:00.480 --> 00:25:07.200
You know, if one couple, if one spouse spends a lot, you don't go to counsel and go to the uh to the spouse and be like, you're spending too much money.
00:25:08.079 --> 00:25:11.839
What you say is, how can we improve our spending?
00:25:12.319 --> 00:25:17.200
You know, so it's how we, you know, so it's not it's not um defensive, you know.
00:25:17.359 --> 00:25:25.119
Um, or if or if one spouse is um, let's say, uh getting a lot of debt, you know, they're putting it or they came in with some debt.
00:25:25.359 --> 00:25:26.240
Came in with some debt.
00:25:26.319 --> 00:25:26.480
Right.
00:25:26.720 --> 00:25:30.079
It's not about you have a lot of debt, you're creating too much debt.
00:25:30.319 --> 00:25:32.319
It's how can we eliminate it together?
00:25:32.640 --> 00:25:33.680
Eliminate it together, exactly.
00:25:34.160 --> 00:25:44.480
What should we be teaching our children about money so that they don't face some of the financial issues that we face as adults?
00:25:44.720 --> 00:25:45.359
That's right.
00:25:45.599 --> 00:25:48.720
So I think a lot of stuff is led by example.
00:25:49.200 --> 00:25:54.319
And what I mean by that is sometimes not always necessarily what you tell your children, it's what you show your children.
00:25:55.359 --> 00:26:01.920
You know, um, do my kids see me sitting down with my wife going over budget?
00:26:02.720 --> 00:26:04.960
It's a behavior, it's a learned activity.
00:26:05.680 --> 00:26:08.880
So you you can't say something and then do something totally different.
00:26:09.039 --> 00:26:09.279
Right.
00:26:09.519 --> 00:26:12.960
I know a lot of times people try to tell the kids about money, but they're not doing it themselves.
00:26:13.599 --> 00:26:15.759
You know, so first, be an example.
00:26:15.839 --> 00:26:16.079
Okay.
00:26:16.240 --> 00:26:17.839
I think that's gonna be that's gonna be key.
00:26:18.000 --> 00:26:18.240
Okay.
00:26:18.480 --> 00:26:23.359
Because um a child's not gonna be necessarily always interested in uh you know finances per se.
00:26:23.680 --> 00:26:23.839
Sure.
00:26:24.079 --> 00:26:25.279
But you can make it fun.
00:26:25.440 --> 00:26:28.079
And what I mean by that is allowances.
00:26:28.880 --> 00:26:32.160
First, you can have them learn how to work to be able to get that allowance.
00:26:32.240 --> 00:26:35.359
Don't just give it to them, you know, so it creates a work ethic.
00:26:36.079 --> 00:26:42.720
Then you want to teach a child how to save, give, and then spend.
00:26:42.880 --> 00:26:44.319
You know, so I love that.
00:26:44.480 --> 00:26:45.519
Save, give, and spend.
00:26:45.759 --> 00:26:46.559
Save, give, and spend.
00:26:46.720 --> 00:26:48.640
Why is that so critical to teach our children?
00:26:48.880 --> 00:26:52.799
Because it's if it's foundational and something you want to do throughout your entire life.
00:26:53.039 --> 00:26:55.519
You want you, you don't want to just save money, you know.
00:26:55.599 --> 00:26:56.720
Um, you want to be a giver.
00:26:56.799 --> 00:26:59.759
I think the giving is like the biggest thing that somebody can do.
00:26:59.920 --> 00:27:02.240
It gives you a feeling like no other when you're able to give.
00:27:02.799 --> 00:27:08.799
You know, um, whether it's like giving to church, you know, um, some people you want to do your giving on Sunday, right?
00:27:08.880 --> 00:27:12.240
Right, time by giving to an organization.
00:27:12.559 --> 00:27:12.960
Exactly.
00:27:13.200 --> 00:27:20.640
Because it teaches them more, it teaches them that only are we blessed to have this money, but we're also blessed to give some of this money too.
00:27:20.799 --> 00:27:21.119
Exactly.
00:27:21.279 --> 00:27:21.680
I love that.
00:27:21.839 --> 00:27:25.039
Okay, is there anything else we should be teaching our children about money?
00:27:25.440 --> 00:27:36.319
And also um budging, like we said, you start off small, you know, a kid wants candy, things of that nature, you know, showing them how to be intentional, you know, with their money early on.
00:27:36.559 --> 00:27:39.440
And then as they get older, it gets a little bit more advanced.
00:27:40.160 --> 00:27:42.880
And um, also start early.
00:27:43.119 --> 00:27:48.640
Teaching kids um, like if you want to set something aside, like invest it somewhere or something like that.
00:27:48.720 --> 00:27:49.039
I see.
00:27:49.200 --> 00:27:53.440
The earlier you start, the better because you have time on your side for compounded interest.
00:27:53.599 --> 00:27:53.839
Sure.
00:27:54.000 --> 00:27:59.279
So somebody that starts when they're 17 and 16 is gonna look a whole lot differently than somebody that starts when they're 40 years old.
00:27:59.759 --> 00:28:01.119
Sure, sure, sure, sure.
00:28:01.359 --> 00:28:07.279
Can someone earning$40,000 a year regularly save money and build wealth?
00:28:07.519 --> 00:28:08.640
Yes, is that possible?
00:28:08.880 --> 00:28:09.680
Yes, it's possible.
00:28:09.759 --> 00:28:11.599
Okay, but um, we gotta be realistic.
00:28:11.759 --> 00:28:19.519
Oh, you know, um$40,000 a year in one community, you know, may provide a different lifestyle than$40,000 in another community.
00:28:20.160 --> 00:28:28.400
And what I mean by that is that family size, housing costs, child care debt, health care expenses, all that stuff matters.
00:28:28.640 --> 00:28:29.440
All of it matters.
00:28:29.920 --> 00:28:32.079
But here's what I want people to understand.
00:28:32.960 --> 00:28:37.200
You know, um, building wealth isn't reserved exclusively for those people that make six figures.
00:28:37.920 --> 00:28:43.839
You know, it's about creating margin between what we earn and what you spend.
00:28:44.079 --> 00:28:44.559
Got it.
00:28:44.720 --> 00:28:47.119
You know, um, and then using that margin wisely.
00:28:47.200 --> 00:28:50.079
So maybe, you know, we start saving$10 a week.
00:28:50.160 --> 00:28:54.720
I'm starting small because not always necessarily about the dollar amount, it's about the habit.
00:28:55.359 --> 00:28:58.400
You know, um, and that but that's$520 a year.
00:28:58.799 --> 00:29:04.000
You know, if you add it over time, if you do it$10 a week, right, but um, is that going to make you wealthy overnight?
00:29:04.160 --> 00:29:05.759
No, right, absolutely not.
00:29:05.920 --> 00:29:06.000
Right.
00:29:06.240 --> 00:29:07.279
But it's it's a starting point.
00:29:07.519 --> 00:29:08.400
Right, right, right.
00:29:08.960 --> 00:29:16.319
Um, but as as your income increases and your debt decreases, you know, now you're able to set more aside so it looks a whole lot differently.
00:29:16.400 --> 00:29:19.599
You have a bigger, maybe a better financial picture from that standpoint.
00:29:20.480 --> 00:29:34.640
If you as a finance expert could give Americans three rules, three financial rules to live by, what would they be?
00:29:35.200 --> 00:29:38.559
First one, number one, spend less than what you earn.
00:29:38.799 --> 00:29:39.119
Okay.
00:29:39.839 --> 00:29:44.079
Number two, is don't use debt to finance your lifestyle.
00:29:44.960 --> 00:29:46.160
That's gonna be huge right there.
00:29:46.400 --> 00:29:47.119
Okay, okay.
00:29:47.440 --> 00:29:51.920
And number three, give every dollar a job.
00:29:52.240 --> 00:29:54.480
Be intentional, know what you're spending.
00:29:54.960 --> 00:29:57.200
I think those are three major key concepts.
00:29:57.359 --> 00:29:59.440
Or if I can give advice, that's what it'll be.
00:29:59.680 --> 00:29:59.920
Really?
00:30:00.000 --> 00:30:02.799
And why do those sit at the top of advice?
00:30:03.039 --> 00:30:05.119
Is because they do what for your life?
00:30:05.440 --> 00:30:10.880
Because it gives your it gives your it gives your life intention when it comes to your finances.
00:30:11.359 --> 00:30:13.759
Being intentional is what it's all about.
00:30:14.160 --> 00:30:21.119
And sometimes what I tell people is I tell them your today's situation does not have to be your tomorrow's destination.
00:30:21.359 --> 00:30:24.000
You know, so that is so good.
00:30:25.119 --> 00:30:26.960
That is so good, Quincy.
00:30:27.119 --> 00:30:28.880
That's gonna set a lot of people free right there.
00:30:29.039 --> 00:30:29.680
Yes, sir.
00:30:29.839 --> 00:30:30.559
That's good.
00:30:30.720 --> 00:30:33.920
But this is why we gotta be intentional about every dollar.
00:30:34.240 --> 00:30:34.720
Bingo.
00:30:34.880 --> 00:30:40.480
Yeah, this is probably well, Quincy, I've had so much uh fun sitting here talking to you.
00:30:40.640 --> 00:30:43.519
I hope that people got something from our conversation.
00:30:43.759 --> 00:30:46.799
I hope that they learned something from our conversation.
00:30:47.039 --> 00:30:53.920
And uh if the people want to contact you, if they want you to help them with their finances, how can they get in contact with you?
00:30:54.160 --> 00:31:03.119
They can always um email me, coachway moneytips at gmail.com, as tips with an S at the end, phone number 706 418 6964.
00:31:03.359 --> 00:31:03.599
Okay.
00:31:03.759 --> 00:31:05.680
Well, thank you so much, Quincy, for joining me.
00:31:05.920 --> 00:31:06.480
Hey, thank you.
00:31:07.279 --> 00:31:11.119
Brought to you by MSW Productions.
00:00:00.239 --> 00:00:01.199
Hey, my friends.
00:00:01.360 --> 00:00:13.519
Welcome to a conversation with Matthew Sanchez, the podcast produced and created by MSW Productions.
00:00:13.919 --> 00:00:21.600
Ladies and gentlemen, I have today with me a financial, I consider him a financial expert.
00:00:22.239 --> 00:00:29.039
And today's topic is why does$100 not feel like$100 anymore?
00:00:29.280 --> 00:00:41.520
Because I think whether you're married, single, or you're a working mother, working father, and you're making money, for some reason, something's happening here, and we're having troubles.
00:00:41.759 --> 00:00:45.920
Not all of us, but there are some of us who are having troubles to get to a stable place.
00:00:46.079 --> 00:00:54.000
So I have called upon the finance expert, Quincy Wade.
00:00:54.560 --> 00:00:56.960
Are you related to any like the famous?
00:00:57.280 --> 00:00:57.439
Okay.
00:00:57.679 --> 00:00:58.079
No relationship.
00:00:58.479 --> 00:00:59.679
Okay, not related to him.
00:00:59.759 --> 00:01:00.880
Okay, just making sure.
00:01:01.359 --> 00:01:04.159
But you've been in the finance world for how long?
00:01:04.319 --> 00:01:06.959
I've been in the finance service industry for over 25 years.
00:01:07.200 --> 00:01:08.000
25 years.
00:01:08.159 --> 00:01:08.560
Yes.
00:01:08.799 --> 00:01:14.239
And you told me off cameras that um you had to find something to do, and this is what you was gonna do.
00:01:14.480 --> 00:01:15.120
Exactly.
00:01:15.359 --> 00:01:15.760
Exactly.
00:01:15.840 --> 00:01:17.040
I couldn't work with my hands.
00:01:17.120 --> 00:01:18.560
My dad said two left hands.
00:01:18.640 --> 00:01:19.439
So what can I do?
00:01:20.000 --> 00:01:21.840
And so now you got into this world.
00:01:22.079 --> 00:01:22.560
Exactly.
00:01:22.719 --> 00:01:23.760
And tell me this.
00:01:24.000 --> 00:01:30.879
Tell me what have you learned the most being in this um industry?
00:01:31.439 --> 00:01:38.000
What I've learned the most is that, you know, people they have all different types of backgrounds, you know, when it comes to like personal finance.
00:01:38.239 --> 00:01:40.799
Some people they saw their parents sitting down doing budgets.
00:01:41.120 --> 00:01:42.879
Some people they never saw that, you know.
00:01:42.959 --> 00:01:50.959
So you can see how that carries on, you know, with how people handle their current finances from day to day, whether they're exposed to it like early on in life.
00:01:51.519 --> 00:01:52.959
Where are you from, Quincy?
00:01:53.120 --> 00:01:55.040
Well, I was um born in Albany, Georgia.
00:01:55.200 --> 00:01:55.439
Come on.
00:01:55.680 --> 00:01:58.159
Um raised in raised in Newport, News, Virginia.
00:01:58.319 --> 00:01:58.480
Okay.
00:01:58.719 --> 00:02:00.719
Folks in the military, so I kind of bounced around a little bit.
00:02:01.120 --> 00:02:01.439
Wow.
00:02:02.000 --> 00:02:03.680
How did you end up here in Columbus?
00:02:03.920 --> 00:02:04.959
By way of military.
00:02:05.120 --> 00:02:05.519
Oh, okay.
00:02:05.599 --> 00:02:06.400
So you just stayed.
00:02:06.480 --> 00:02:07.280
You guys just stayed.
00:02:07.599 --> 00:02:08.719
Well, end up staying.
00:02:08.800 --> 00:02:13.439
Um, folks wanted to move closer, you know, to Albany, but they didn't want to go directly to Albany.
00:02:13.520 --> 00:02:14.879
I guess be close enough.
00:02:15.199 --> 00:02:15.439
Yeah.
00:02:15.680 --> 00:02:18.319
We can sit there on the weekend and do what we need to do.
00:02:18.400 --> 00:02:19.599
You see family and everything like that.
00:02:19.840 --> 00:02:22.080
Oh, only child, I got brothers and sisters, or what?
00:02:22.319 --> 00:02:23.680
I'm the oldest out of six.
00:02:23.919 --> 00:02:28.080
Crazy thing about it, um, I'm way older than most of my uh younger siblings, correct?
00:02:28.319 --> 00:02:29.280
You're the tallest out of the city?
00:02:30.240 --> 00:02:30.719
I am the tallest.
00:02:30.879 --> 00:02:34.319
When you when he came into that, I'm telling you, I said, Why didn't I expect you to be this tall?
00:02:34.400 --> 00:02:35.520
It's like you said you're 6'5.
00:02:35.759 --> 00:02:37.039
6'5 when I'm standing up straight.
00:02:37.199 --> 00:02:39.280
Woo! Wow.
00:02:39.520 --> 00:02:51.120
Okay, let's get into let's get into it because um my heart has been leaning towards individuals who need help with money.
00:02:51.520 --> 00:03:07.919
And um I think anytime we talk about money, people always get either tense, they get nervous, some of them get excited because uh they're they're called to talk about money and that God has called them to do such a thing.
00:03:08.319 --> 00:03:13.039
Uh, and some people just get like, well, I don't even want I don't even want to touch it, I don't even want to worry about it.
00:03:13.439 --> 00:03:16.719
So for my first, I have some questions here.
00:03:16.879 --> 00:03:17.120
Okay.
00:03:17.280 --> 00:03:18.080
I prepared you.
00:03:18.159 --> 00:03:18.319
Yes.
00:03:18.479 --> 00:03:19.919
So you know the questions.
00:03:20.159 --> 00:03:24.159
Um, but let's answer the title question first.
00:03:24.400 --> 00:03:29.360
Why doesn't$100 go as far as it used to be?
00:03:29.599 --> 00:03:31.280
I'm glad you asked that question.
00:03:31.520 --> 00:03:39.199
One reason I said I remember way back when, you know, you used to be able to go to the grocery store with$100, you know, get some groceries, and you push around a cart.
00:03:39.759 --> 00:03:42.080
And you feel like you accomplished, you feel like you accomplished something.
00:03:42.800 --> 00:03:48.080
Now, fast forward to today's time, same$100, same dead president on that$100 bill.
00:03:48.159 --> 00:03:48.879
Nothing's changed.
00:03:49.039 --> 00:03:49.520
Right, right.
00:03:49.680 --> 00:03:51.199
But the purchasing power has changed.
00:03:51.280 --> 00:03:56.879
You know, um, now you spend$100, you get a few, a few eggs, you know, a little meat, a little groceries.
00:03:56.960 --> 00:03:57.120
Yeah.
00:03:57.360 --> 00:03:59.199
You look at that bill and you're like, who robbed me?
00:03:59.439 --> 00:03:59.840
That's right.
00:03:59.919 --> 00:04:00.400
That's right.
00:04:00.479 --> 00:04:00.800
That's right.
00:04:01.039 --> 00:04:05.759
And now instead of pushing the cart to the car with your groceries, you're walking out with everything in two hands.
00:04:06.479 --> 00:04:10.719
So, so that talks to us about something that's called inflation.
00:04:10.960 --> 00:04:14.960
You know, um, I call it the silent income killer because oftentimes you don't see it creep up on you.
00:04:15.360 --> 00:04:16.639
It comes in slowly.
00:04:17.199 --> 00:04:24.480
And if your your income doesn't, you know, increase as fast as the expenses, now you're losing purchasing power.
00:04:24.800 --> 00:04:34.720
So the dollar that you spent yesterday doesn't spin the same way today, you know, because inflation, the cost of things are going up, and that's why$100 does not spend the same as it used to.
00:04:34.959 --> 00:04:43.040
And why how how is it that Americans can work a full-time job and still struggle to make ends meet?
00:04:43.279 --> 00:04:45.199
Most of that, that's a good question as well.
00:04:45.439 --> 00:04:51.519
Because basically, you know, um, working hard and getting ahead financially is two totally separate different things.
00:04:52.000 --> 00:04:56.720
You know, people work 40, 50, you know, 60 hours per week and they're still struggling.
00:04:57.199 --> 00:05:03.279
You know, um, a lot is attributed to like housing costs, you know, that's gone up, food costs, health care.
00:05:03.519 --> 00:05:10.480
You know, a lot of people are feeling that healthcare right about now, you know, um uh things are just increasing in prices.
00:05:10.800 --> 00:05:17.680
And not only that, you know, um people um are not managing their cash flow, you know, properly.
00:05:18.079 --> 00:05:24.399
You know, because money comes in, but money comes out, people are not really looking at what exactly they're um they're spending their money on.
00:05:25.120 --> 00:05:28.879
And I attribute this to a lot of different things, you know, uh social media.
00:05:29.040 --> 00:05:29.279
Yep.
00:05:29.439 --> 00:05:29.920
That's one.
00:05:30.079 --> 00:05:30.240
Yeah.
00:05:30.399 --> 00:05:38.879
You know, people see somebody doing um vacation, you know, they they want that vacation, you know, they want that clothes, they want that car, you know, they want those different items.
00:05:39.120 --> 00:05:41.519
And I think that's what's kind of like um holding people back.
00:05:41.759 --> 00:05:47.759
At what point does family finance struggles become more than just a budgeting problem?
00:05:48.000 --> 00:05:48.480
Exactly.
00:05:48.639 --> 00:05:50.000
At what what point is that?
00:05:50.240 --> 00:06:05.279
So basically, once you've uh kind of eliminated all your unnecessary expenditures, and once you've, you know, um got rid of the subscriptions you don't need, things like that, and you can't afford your necessities, your basic things of life.
00:06:05.360 --> 00:06:07.199
I always tell people take care of your four walls.
00:06:07.600 --> 00:06:13.120
You know, you want to take care of your housing, you want to take care of your utilities, food, and transportation.
00:06:13.199 --> 00:06:15.040
Those are the main things that keep the household going.
00:06:15.519 --> 00:06:21.680
And if you can't afford these basic necessities, that's how you know it's more than just a buzzing problem, it's an income problem.
00:06:22.319 --> 00:06:25.279
And you can't budget your way out of an income problem.
00:06:25.519 --> 00:06:26.399
What do you mean by that?
00:06:26.639 --> 00:06:33.600
So basically, what that means is that if it's an income problem, you need to look at pretty much um trying to identify ways to earn an extra additional income.
00:06:33.920 --> 00:06:35.040
Okay, okay, I see what you mean.
00:06:35.360 --> 00:06:41.360
Maybe switching jobs, switching careers, um, getting a skill set, you know, maybe community assistance.
00:06:41.439 --> 00:06:44.240
You just need extra help, you know, when it comes to that point.
00:06:44.399 --> 00:06:54.639
And that's why I say you can't budget your way, but however, a budget will help you identify the problem, whether it's a cash flow management problem or if it's an income problem, the budget will help you identify that.
00:06:54.879 --> 00:06:57.040
And what's the best way to budget?
00:06:57.439 --> 00:06:58.160
Best way to budget.
00:06:58.319 --> 00:06:58.560
Yeah.
00:06:58.720 --> 00:06:59.680
Well, what's the best way?
00:06:59.759 --> 00:07:04.480
How do how do I how do I know where to start when I want to start a budget?
00:07:04.800 --> 00:07:05.519
Exactly.
00:07:05.759 --> 00:07:06.560
You want to start.
00:07:06.639 --> 00:07:10.000
I always when I when I coach people, I always tell them about the zero-based budgeting.
00:07:10.160 --> 00:07:10.399
Okay.
00:07:10.560 --> 00:07:14.000
Um, zero-based budgeting just means that you account for every dollar.
00:07:14.160 --> 00:07:16.079
It doesn't mean your checking account goes to zero.
00:07:16.639 --> 00:07:20.560
It just means basically you sit down, you'll tell each dollar where it's going, where it's going.
00:07:20.720 --> 00:07:21.040
Okay.
00:07:21.199 --> 00:07:23.759
Remember, I said first you go take care of those four, those four walls.
00:07:23.920 --> 00:07:24.079
Right.
00:07:24.319 --> 00:07:26.639
You go set aside for utilities, things of that nature.
00:07:26.800 --> 00:07:32.000
This is for utilities, this for transportation, gas, so on and such forth, this for groceries.
00:07:32.160 --> 00:07:38.000
So you're telling every dollar where to go, savings, so on and such forth, until you have everything accounted for.
00:07:38.720 --> 00:07:45.199
And I like teaching people that because that way you're able to identify unnecessary spending.
00:07:45.439 --> 00:07:48.720
And you can find margin, I call margin in your budget.
00:07:49.040 --> 00:07:55.439
That's um finding extra money that you can use to allocate somewhere else to help you build wealth, okay, eliminate debt, okay, so on and so forth.
00:07:55.680 --> 00:07:56.000
Okay.
00:07:56.240 --> 00:08:01.199
And how much should I set aside?
00:08:01.360 --> 00:08:14.399
Let's say, like, let's say my car payment is like$350 a month, and I'm and I'm I'm pushing a goal to eventually pay that off.
00:08:15.120 --> 00:08:20.319
But I'm only spending, I'm I'm only gonna give that, I'm only gonna give$350 a month.
00:08:20.560 --> 00:08:26.240
Should I give more to continue to but then if I give more, then something else is lacking because I'm trying to pay this off.
00:08:26.319 --> 00:08:26.879
Does that make sense?
00:08:26.959 --> 00:08:27.360
That makes sense.
00:08:27.519 --> 00:08:37.919
Yeah, so how do I how do I how do I budget in a way that I can start paying things off and so that it won't be such a big load at the end of the month to pay off and I have nothing to spend?
00:08:38.000 --> 00:08:38.639
Does that make sense?
00:08:38.799 --> 00:08:39.200
That's right.
00:08:39.279 --> 00:08:39.519
Yeah.
00:08:39.679 --> 00:08:48.720
So pretty much what you need to do is um list all your debts out from smallest balance all the way to the largest balance, not including the mortgage.
00:08:48.879 --> 00:08:50.559
Do not include the mortgage in this.
00:08:50.799 --> 00:08:54.799
And then you're gonna pay the minimum on every single thing, every single item on there.
00:08:55.200 --> 00:08:56.799
And we do your zero-based budgeting.
00:08:56.960 --> 00:08:57.919
Remember, I told you about margin.
00:08:58.000 --> 00:08:58.080
Yes.
00:08:58.320 --> 00:08:59.360
You're able to eliminate things.
00:08:59.440 --> 00:08:59.759
Yes.
00:08:59.919 --> 00:09:06.000
You're able to find extra money, and we find that extra money, you could take that extra money and apply it towards that smallest debt.
00:09:06.559 --> 00:09:10.399
Then we probably think to that smallest bet, you tack it with every all your intensity.
00:09:10.879 --> 00:09:11.519
Give me an example.
00:09:11.679 --> 00:09:12.320
Give me an example.
00:09:12.480 --> 00:09:17.120
All right, so let's say you have a debt, you have a uh your car, let's say, let's start with something small.
00:09:17.200 --> 00:09:29.440
Let's say you have a credit card balance that has like a$1,000 balance, you have um a car that has$5,000 left on it, and let's say you have a uh$10,000 um personal loan.
00:09:30.000 --> 00:09:33.919
So what you'll do is you'll attack that$1,000 debt first.
00:09:34.159 --> 00:09:38.559
So let's say you're paying uh$200 a month towards that$1,000 debt.
00:09:39.279 --> 00:09:45.519
Once you wipe out that$1,000 debt, you're gonna take that$200 and you're gonna add it to the next debt.
00:09:46.159 --> 00:09:51.120
You know, so that'll be that um that uh that car loan we talked about with$5,000.
00:09:51.360 --> 00:09:55.200
So you're paying$350 on it, now you can add that$200, now you're paying$550 towards it.
00:09:55.600 --> 00:09:56.240
Okay, I see.
00:09:56.480 --> 00:09:57.840
And roll it down, snowball.
00:09:58.080 --> 00:09:59.679
Okay, that makes a lot of sense.
00:10:00.000 --> 00:10:01.840
Because eventually you can you'll pay it off.
00:10:02.080 --> 00:10:03.600
You'll pay it off in a fraction of the time.
00:10:03.759 --> 00:10:11.120
Most people, when they do that strategy, you're able to wipe out most of your debts within the next, usually it's like 24 months, 24 to 36 months.
00:10:11.200 --> 00:10:12.720
You have all that debt wiped out.
00:10:13.039 --> 00:10:13.679
Wow.
00:10:14.000 --> 00:10:14.320
Okay.
00:10:14.639 --> 00:10:18.559
So, in so many words, what just saying is you just add a little more every time.
00:10:18.720 --> 00:10:19.120
Exactly.
00:10:19.519 --> 00:10:20.159
A little more every time.
00:10:20.240 --> 00:10:24.879
So don't pay to just a$350 for the car, no, just pay a little bit more every time.
00:10:25.200 --> 00:10:25.759
Every time.
00:10:25.919 --> 00:10:27.759
Okay, wow, that makes a lot of sense.
00:10:27.919 --> 00:10:36.559
If someone only has$100 left until the next paycheck, how should they decide what to do with that hundred dollars?
00:10:36.879 --> 00:10:38.960
First of all, don't panic.
00:10:41.120 --> 00:10:41.919
Don't panic.
00:10:42.159 --> 00:10:42.639
Yeah, yeah.
00:10:42.799 --> 00:10:48.240
So we're gonna make sure we base our decisions off of priorities, you know, not emotions.
00:10:48.399 --> 00:10:48.720
Okay.
00:10:48.960 --> 00:10:52.000
You know, so so that last hundred dollars, that's not for entertainment.
00:10:52.240 --> 00:10:53.440
This this is for survival.
00:10:53.600 --> 00:10:53.919
Okay.
00:10:54.080 --> 00:10:59.919
You know, you want to make sure you have that money, um, whether it's set aside for like get gas or go to work, you gotta go to work.
00:11:00.159 --> 00:11:00.320
Right.
00:11:00.559 --> 00:11:02.879
And how much should I spend for gas if it's only$100?
00:11:03.759 --> 00:11:04.799
It's gonna be a feel.
00:11:04.879 --> 00:11:09.279
You know, everybody knows kind of like how much you need to last you, like until the next kind of like payday.
00:11:09.519 --> 00:11:10.879
Okay, so you know, you know, you know.
00:11:11.120 --> 00:11:17.679
You know, because like sometimes people like, I just need to put$20 in there, you know, um, just to last me until I get paid a couple days later.
00:11:17.840 --> 00:11:18.240
Yes, yes.
00:11:18.399 --> 00:11:22.320
You gotta have that feeling of how much you need, you know, in terms of being able to do that.
00:11:22.480 --> 00:11:23.200
So don't panic.
00:11:23.360 --> 00:11:23.840
Don't panic.
00:11:24.000 --> 00:11:24.960
What else should I do?
00:11:25.120 --> 00:11:36.720
So also um if it's like something that's dire needs, you know, I know uh the uh there's there's different resources out there, you know, um food banks, you know, if you need to get food, you know, um, because that's a necessity.
00:11:36.799 --> 00:11:37.600
You have to have food.
00:11:37.679 --> 00:11:38.000
Right.
00:11:38.240 --> 00:11:40.559
Um look for the community resources.
00:11:40.720 --> 00:11:44.559
Um, don't be afraid to ask for help, you know, when help is um needed.
00:11:44.720 --> 00:11:48.480
Don't feel embarrassed about it because everybody needs uh a hand every now and then.
00:11:48.720 --> 00:11:59.200
Yeah, I think that's one of the biggest problems, too, quits, is that when people, uh there are people who only have$100 left in their paycheck, um, they don't want to ask for help because asking for help makes you look weak.
00:11:59.360 --> 00:11:59.759
That's right.
00:11:59.919 --> 00:12:05.840
And nobody wants to look weak, especially um if you live in this generation.
00:12:06.080 --> 00:12:10.320
Uh everybody wants to, everybody wants to appeal like they know what they're doing and they got it all forgot.
00:12:10.480 --> 00:12:10.960
But you don't.
00:12:11.120 --> 00:12:11.440
You don't.
00:12:11.600 --> 00:12:11.759
Yeah.
00:12:12.240 --> 00:12:18.159
It's it's they say uh pride, you know, and what pride, it says pride um comes before destruction.
00:12:18.320 --> 00:12:18.480
Right.
00:12:18.639 --> 00:12:20.000
And haughty spirit before the fall.
00:12:20.159 --> 00:12:22.000
So don't let pride hold you back.
00:12:22.399 --> 00:12:22.480
Right.
00:12:22.879 --> 00:12:28.720
What's one financial habit that could completely change someone's situation over the next year?
00:12:29.039 --> 00:12:29.440
All right.
00:12:29.679 --> 00:12:36.960
One financial habit um that can change somebody's um behavior next year, number one, as I mentioned before, zero-based budget.
00:12:37.360 --> 00:12:43.759
Number two, um, another, I know it's more than one habit, but another habit you can do is um a lot of people don't realize this.
00:12:44.000 --> 00:12:50.799
IRS.gov has stated that over 80% of people, you know, um fill out their W4s incorrectly at their jobs.
00:12:51.279 --> 00:12:53.840
So they're over withholding in taxes.
00:12:54.080 --> 00:12:54.399
Really?
00:12:54.559 --> 00:12:54.799
Right?
00:12:54.879 --> 00:12:55.200
Exactly.
00:12:55.360 --> 00:12:56.720
So that means you're missing some money out.
00:12:56.879 --> 00:12:58.080
You're missing some money out.
00:12:58.240 --> 00:12:58.639
Wow.
00:12:58.879 --> 00:13:11.200
And what people don't realize is on the IRS website, there's a calculator on there that tells you exactly you bring, you have your most recent pay sub with you, and you go answer all the questions and tells you exactly how much you need to withhold.
00:13:11.440 --> 00:13:14.000
Prints off the W4 for you that you give to your employer.
00:13:14.320 --> 00:13:22.559
But just by doing that, a lot of people are able to increase their take-home income every single month, an additional$200 to$300 to$500 per month.
00:13:22.720 --> 00:13:23.039
Wow.
00:13:23.200 --> 00:13:26.240
Without working extra hours, without asking for a pay raise.
00:13:26.399 --> 00:13:26.559
Wow.
00:13:26.639 --> 00:13:28.159
Why do people do it incorrectly?
00:13:28.240 --> 00:13:29.600
Why do they not know how to do it?
00:13:29.840 --> 00:13:30.559
Just don't know.
00:13:30.720 --> 00:13:32.080
A lot of people just don't know.
00:13:32.240 --> 00:13:34.480
Um, average tax refund is over$3,000.
00:13:34.720 --> 00:13:40.399
That means you're just giving an uh interest-free loan to the government and that money actually goes back into your pocket.
00:13:40.639 --> 00:13:41.679
And they won't tell you about it.
00:13:41.919 --> 00:13:42.320
Just don't know.
00:13:42.399 --> 00:13:44.559
Yeah, you gotta read the information out there.
00:13:44.639 --> 00:13:44.799
Wow.
00:13:45.919 --> 00:13:46.799
Oh, wow.
00:13:47.200 --> 00:13:56.480
How do people end up in thousands of dollars in debt and then you ask them how they got there and they don't know how they got there?
00:13:56.799 --> 00:13:58.080
How does that happen?
00:13:58.320 --> 00:13:59.039
Exactly.
00:13:59.200 --> 00:14:01.039
Uh, one payment at a time.
00:14:01.440 --> 00:14:02.399
That's how you get there.
00:14:02.559 --> 00:14:03.120
That's how.
00:14:03.360 --> 00:14:08.480
You see, um, most people don't wake up one morning and say, you know, I want to, I want, I want$50,000 in debt.
00:14:08.559 --> 00:14:08.879
Uh-huh.
00:14:09.200 --> 00:14:10.720
No, it happens gradually.
00:14:11.200 --> 00:14:12.960
Happens slowly over time.
00:14:13.279 --> 00:14:16.799
You know, you go to that furniture store and you're like, um, oh, I like this furniture set.
00:14:17.200 --> 00:14:18.879
And they say, you know, we can make this affordable.
00:14:19.200 --> 00:14:21.440
All you have to do is pay$99 a month.
00:14:21.919 --> 00:14:23.679
They don't tell you what the interest rate is.
00:14:23.919 --> 00:14:25.039
They don't tell you how long.
00:14:25.279 --> 00:14:27.919
All you think is That$99 a month.
00:14:28.080 --> 00:14:28.799
I can afford that.
00:14:28.879 --> 00:14:29.039
Yeah.
00:14:29.840 --> 00:14:30.639
So it's gradual.
00:14:30.720 --> 00:14:31.759
So it sneaks up on you.
00:14:31.840 --> 00:14:36.639
And then eventually, after you before you know it, you got$30,000,$40,000 in debt.
00:14:37.600 --> 00:14:38.320
Little out of time.
00:14:38.720 --> 00:14:43.360
It's almost like there's a it's almost like it's a a scam to it almost.
00:14:43.440 --> 00:14:49.360
It makes you feel like it's somebody robbing you because they don't tell you the interest rate on no stuff and they don't tell you all the stuff you need.
00:14:49.440 --> 00:14:53.679
And then by the time you're in debt, you're already, you're already down the hole.
00:14:54.240 --> 00:14:54.799
You know what I'm saying?
00:14:54.960 --> 00:14:55.360
Exactly.
00:14:55.519 --> 00:14:56.320
Why is that like that?
00:14:56.399 --> 00:15:04.000
Why don't people well you probably can't answer that, but what what what's the best way, if you're at a franchise store, to get?
00:15:04.240 --> 00:15:07.120
Do you do you get the most expensive one or do you get the one you can afford?
00:15:07.200 --> 00:15:11.759
Do you get one that you know that you could pay for it two times if you had that makes sense?
00:15:11.919 --> 00:15:12.320
That makes sense.
00:15:13.519 --> 00:15:14.559
What's your advice about that?
00:15:14.799 --> 00:15:18.240
I would say a lot a lot of times immediate gratification gets you in trouble.
00:15:18.879 --> 00:15:19.600
When it comes to money.
00:15:19.759 --> 00:15:22.159
When you want it instantly, you know, right there on the spot.
00:15:22.799 --> 00:15:24.960
Um, I like how they did it back in the day.
00:15:25.120 --> 00:15:27.039
You know, if they wanted some, you saved for it.
00:15:27.519 --> 00:15:30.480
You know, so people need to save for the things that they want.
00:15:30.559 --> 00:15:33.360
They don't have to always necessarily put everything on credit.
00:15:33.679 --> 00:15:34.879
You know, you don't have to do that.
00:15:35.200 --> 00:15:42.879
You know, um, and also, like you just mentioned, get things that are affordable, things that are within your, you know, um, things that you can handle financially.
00:15:43.120 --> 00:15:46.720
Well, what give me an example of what's affordable in terms of the couch analogy?
00:15:46.960 --> 00:15:47.279
That's right.
00:15:47.679 --> 00:15:48.559
Give me an example.
00:15:48.799 --> 00:15:55.919
So I what I think is affordable is something that you, if you do um finance it, like I think a furniture, something you can probably pay off within 12 months.
00:15:56.320 --> 00:15:56.399
Okay.
00:15:56.559 --> 00:15:59.200
You know, but if it's something that's gonna take you three, four years to pay off.
00:15:59.440 --> 00:15:59.919
Don't do it.
00:16:00.080 --> 00:16:00.720
Don't do it.
00:16:01.120 --> 00:16:09.759
You know, um, and you want to pay it off as fast as possible because when you pay things off fast, you don't really realize that that interest, the high interest on there.
00:16:09.919 --> 00:16:11.440
This is what I want people to understand.
00:16:11.600 --> 00:16:14.320
I want them to understand the game that we're playing.
00:16:14.399 --> 00:16:16.159
This is finances, this is real life.
00:16:16.320 --> 00:16:16.559
Yes.
00:16:16.720 --> 00:16:21.440
You know, when you first get your paycheck, what's the first thing that comes out before it even gets to you?
00:16:21.519 --> 00:16:22.799
What before it gets to the net?
00:16:22.960 --> 00:16:23.440
Taxes.
00:16:23.679 --> 00:16:24.240
Taxes.
00:16:24.639 --> 00:16:28.000
The first third of your money is going straight to taxes, right?
00:16:28.480 --> 00:16:31.759
The second third of your money is going to expenses.
00:16:32.480 --> 00:16:33.840
That's things you can't pay off.
00:16:33.919 --> 00:16:35.360
You can't pay off a cell phone bill.
00:16:35.840 --> 00:16:38.960
You know, you can't pay off, you know, um, your electricity bill.
00:16:39.120 --> 00:16:39.919
You can't pay off rent, yeah.
00:16:40.639 --> 00:16:42.480
You're gonna pay month after month, yeah after year.
00:16:42.639 --> 00:16:42.799
Right.
00:16:43.039 --> 00:16:47.279
And then the last third of your money is going towards what I call big business.
00:16:47.759 --> 00:16:48.000
Right.
00:16:48.080 --> 00:16:49.840
So people are, what is big business?
00:16:50.000 --> 00:16:55.759
You know, every time you log on to the website and you see these ads popping up advertising to you, that's big business.
00:16:56.320 --> 00:17:00.960
And big business, you know, that kind of sneaks up on you too, because think about it.
00:17:01.200 --> 00:17:05.200
Every single month out of the year, there's something to celebrate.
00:17:05.680 --> 00:17:11.599
You know, you think there's a holiday, there's January, New Year's, or a birthday, and then all that.
00:17:11.680 --> 00:17:14.799
I want to, you you can name, you go through the month, you'll name a holiday.
00:17:14.880 --> 00:17:16.559
And those things kind of sneak up on you.
00:17:16.640 --> 00:17:18.480
You feel guilty for not buying things sometimes.
00:17:18.720 --> 00:17:20.240
No, you didn't buy a Valentine's Day gift.
00:17:21.200 --> 00:17:22.319
You feel guilty about it.
00:17:22.960 --> 00:17:25.519
That's part of that's part of the game.
00:17:25.920 --> 00:17:31.440
And I'm not telling you not to do things like in terms of that regards, but just understand the game that you're playing.
00:17:31.599 --> 00:17:35.200
So you won't overspend and put yourself in a situation, financial situation.
00:17:35.599 --> 00:17:36.880
How do I beat the game?
00:17:37.200 --> 00:17:41.119
The way you beat the game is pretty much you gotta know how to play the game, right?
00:17:41.440 --> 00:17:53.599
And what I what I just mentioned is how you play the game, just understanding, you know, um, what's coming in and what's coming out of your pockets, you know, um look for things that you uh don't need before, like in your budget.
00:17:54.079 --> 00:17:59.200
Remember, I mentioned um, I always tell people, you know, pull at least uh two to three months worth of statements.
00:17:59.519 --> 00:18:10.480
So you want to pull two to three months' worth of statements, get a highlighter and start highlighting things, the eating out, you know, those subscriptions that you haven't used in 30 days that you don't need.
00:18:10.640 --> 00:18:16.079
That you don't need and learn how to strategically be intentional with your money.
00:18:16.319 --> 00:18:26.799
Are credit cards helping Americans build financial security or are they keeping them more in debt?
00:18:27.200 --> 00:18:27.519
Okay.
00:18:27.920 --> 00:18:28.960
Good question right there.
00:18:29.119 --> 00:18:30.240
Here's how I look at it.
00:18:30.480 --> 00:18:35.599
You know, credit cards, they're financial tools, you know, um, and they have the pros and they have the cons.
00:18:36.240 --> 00:18:44.400
But there are also very easy ways for you to get yourself into trouble if you're carrying balances month after month, year after year.
00:18:45.039 --> 00:18:49.599
You know, because sometimes you're just thinking, you know, I can I can afford this, I just put it on the card.
00:18:50.000 --> 00:18:55.599
And you know, uh, and next thing you know, how we mentioned a little bit earlier, it gets becomes a large balance.
00:18:56.079 --> 00:18:57.599
It becomes uncontrollable.
00:18:58.400 --> 00:19:04.160
And what I mean by uncontrollable, like a debt, is that you don't know when it'll be paid off.
00:19:04.319 --> 00:19:05.039
Yeah, I see.
00:19:05.200 --> 00:19:09.680
If you don't have a time frame or date and when that's gonna be paid off, that's how you know it's a problem.
00:19:09.839 --> 00:19:16.960
So when you're going out and about and you're buying gas, you know, you're buying groceries, things of that nature, and you're putting your debit card in the machine.
00:19:17.279 --> 00:19:19.920
If I'm not using cash, I'd rather use a credit card.
00:19:21.200 --> 00:19:24.400
Three reasons why I'd rather use a credit card for that.
00:19:24.799 --> 00:19:29.519
Um, number one, you know, I'm keeping my credit going in case somebody needs it, you know.
00:19:29.680 --> 00:19:29.920
Okay.
00:19:30.240 --> 00:19:31.279
So keeping it going.
00:19:31.599 --> 00:19:35.119
Number, now I'm paying my interest, I'm paying my balances off every single month now.
00:19:36.480 --> 00:19:43.359
Number two, um, a reason is that, you know, I like to get cash back or rewards, things of that nature.
00:19:43.599 --> 00:19:43.759
Okay.
00:19:44.079 --> 00:19:44.400
All right.
00:19:44.559 --> 00:19:46.480
Number three is from a security perspective.
00:19:46.960 --> 00:19:52.400
So I ask this question, you know, it's not a matter of if it's gonna happen, but it's when it's gonna happen.
00:19:52.480 --> 00:19:54.240
Because cars get compromised all the time.
00:19:54.720 --> 00:19:58.319
I'm quite sure all of you guys have experienced a compromised car before.
00:19:58.799 --> 00:20:05.200
So the question is, would you rather be the institution's money tied up or your personal account tied up?
00:20:06.000 --> 00:20:08.160
I'd rather to be the institution.
00:20:08.400 --> 00:20:08.720
Right, right.
00:20:08.880 --> 00:20:13.599
Because no, sometimes you can file claims and things of that nature, but it doesn't always happen overnight.
00:20:13.759 --> 00:20:14.000
Sure.
00:20:14.240 --> 00:20:14.960
It can take time.
00:20:15.200 --> 00:20:15.440
Sure.
00:20:15.599 --> 00:20:20.960
So that's why I say it could be a tool, but know exactly when you can pay it off.
00:20:21.119 --> 00:20:22.559
That means it's under control.
00:20:22.880 --> 00:20:26.720
And that's how you know if you can do that, that's how you know a credit card is for you.
00:20:26.799 --> 00:20:30.079
If you can't do that, if you can't control yourself, that is not for you.
00:20:30.319 --> 00:20:37.119
What do you think of financial mistake that people make in their 20s that they still have to pay for in their 40s?
00:20:37.839 --> 00:20:40.480
I know many people have run into the same issues.
00:20:40.640 --> 00:20:41.039
Really?
00:20:41.279 --> 00:20:48.240
But trying to look successful, hence where trying to look successful before becoming financially successful.
00:20:48.400 --> 00:20:49.359
I see, I see.
00:20:49.519 --> 00:20:50.799
So, so listen, right here.
00:20:50.880 --> 00:20:57.440
So somebody graduates from college, you know, uh, they get their uh they get a decent paying job, right?
00:20:57.519 --> 00:20:59.759
And um immediately they want to buy a luxury car.
00:20:59.920 --> 00:21:00.160
Right.
00:21:00.319 --> 00:21:01.680
You know, they want to be like mom and dad.
00:21:01.759 --> 00:21:01.920
Right.
00:21:02.160 --> 00:21:04.160
But they don't know what mom and dad had to do in order to get there.
00:21:04.480 --> 00:21:05.279
To sacrifice, right.
00:21:05.440 --> 00:21:06.400
The sacrifice part.
00:21:06.640 --> 00:21:10.799
They get an expensive apartment, the design of clothes, and lifestyle.
00:21:10.960 --> 00:21:17.119
You know, but the thing is, you know, um, there's nothing wrong with one of the nice things, but timing matters.
00:21:17.680 --> 00:21:22.319
You know, so early on when you're in your 20s, you want to make sure you're building yourself a proper foundation.
00:21:22.799 --> 00:21:24.559
Get the foundation built right first.
00:21:24.640 --> 00:21:24.960
Right.
00:21:25.200 --> 00:21:29.359
Because um a how I mean a house built on um a bad foundation can't stand.
00:21:29.440 --> 00:21:29.599
Right.
00:21:29.759 --> 00:21:30.480
It's gonna fall.
00:21:30.720 --> 00:21:30.880
Right.
00:21:31.039 --> 00:21:32.400
Same thing with your financial house.
00:21:32.480 --> 00:21:37.039
You want to make sure you build on a proper foundation, you know, um, and make sure you're stable.
00:21:37.279 --> 00:21:40.960
And stop trying to look rich when you ain't rich.
00:21:41.200 --> 00:21:41.440
Exactly.
00:21:41.680 --> 00:21:44.079
My grandma said you ain't got the pot to piss in.
00:21:44.480 --> 00:21:45.680
That's right, that's right.
00:21:46.000 --> 00:21:46.559
That's right.
00:21:46.799 --> 00:21:47.279
Yeah.
00:21:47.440 --> 00:21:54.240
So so how do I begin in my 20s to build that stable uh financial house?
00:21:54.400 --> 00:21:55.200
How do I do that?
00:21:55.279 --> 00:21:56.240
What do I do?
00:21:56.480 --> 00:21:59.519
It begins with starting with good habits, okay, you know.
00:21:59.599 --> 00:22:02.640
Um And oftentimes, you know, these things aren't taught in school.
00:22:02.799 --> 00:22:05.200
Oftentimes, I know I'm here in Columbus, they're starting to do that.
00:22:05.359 --> 00:22:07.519
Um, so that's that's that's that's a plus.
00:22:07.759 --> 00:22:08.000
Right, right.
00:22:08.160 --> 00:22:10.000
That is a plus, but it's not done everywhere.
00:22:10.400 --> 00:22:16.480
You know, people they teach you geography, you learn about um algebra, you learn about mathematics, but nobody teaches you about personal finance.
00:22:16.720 --> 00:22:18.720
And when you say good habits, what are those habits?
00:22:18.880 --> 00:22:26.000
So good habits is um good thing is um when you get paid, sit down, you know, and tell your money where to go.
00:22:26.160 --> 00:22:27.839
Be intentional about it.
00:22:28.319 --> 00:22:31.039
And when you do that, you make better financial decisions.
00:22:31.279 --> 00:22:33.119
You're not basing it off emotions.
00:22:33.440 --> 00:22:34.880
You know, emotions get you in trouble.
00:22:35.519 --> 00:22:42.720
So, what I hear you saying as a financial expert is that um saving is the way to go.
00:22:42.799 --> 00:22:52.079
And what kills people in financial crisis, uh, what gets them there is because they have they want instant gratification.
00:22:52.319 --> 00:22:52.559
Exactly.
00:22:52.640 --> 00:22:54.240
That's the hardest thing.
00:22:54.400 --> 00:22:56.000
And they don't know how to get themselves out.
00:22:56.240 --> 00:22:56.799
Exactly.
00:22:57.200 --> 00:22:57.680
Exactly.
00:22:57.920 --> 00:23:08.799
Okay, let's talk about marriage and finance because this is probably one of the most talked about things um when it comes to marriage.
00:23:08.960 --> 00:23:13.759
It's more probably one of the most important things you should talk about in a marriage.
00:23:14.559 --> 00:23:21.839
How can two people love each other deeply but still struggle in finance?
00:23:22.000 --> 00:23:22.720
How does that work?
00:23:22.799 --> 00:23:29.440
How does that that's because um love, you know, doesn't automatically create financial compatibility.
00:23:30.079 --> 00:23:31.599
That's gonna be the first thing right there.
00:23:31.920 --> 00:23:40.079
You know, you can have two people who genuinely, genuinely, you know, like love each other, but they were raised two completely different ways.
00:23:40.720 --> 00:23:43.759
In terms of they have two different relationships with money.
00:23:44.000 --> 00:23:44.319
Exactly.
00:23:44.480 --> 00:23:45.599
Okay, exactly.
00:23:45.920 --> 00:23:51.359
How how do they how do they come together as one and get on one accord with money?
00:23:51.440 --> 00:23:52.319
How do they do that?
00:23:52.640 --> 00:23:57.519
It's gonna be a blend, give and uh give and take, both of them, you know.
00:23:57.680 --> 00:24:03.920
Um, because you have one, some person that's a natural saver, you know, what they're gonna bring, they're gonna bring discipline to the household, right?
00:24:04.319 --> 00:24:14.640
So that person that's a natural spender, you know, what they're gonna do is they're gonna bring excitement, you know, um, to enjoy life, you know, because you want to budget to a point where you can't enjoy life.
00:24:14.799 --> 00:24:15.279
Right, right.
00:24:15.359 --> 00:24:15.519
Right.
00:24:15.680 --> 00:24:20.720
So it's it's a it's a good blend for both of them to come together because there's always gonna be one spender, right?
00:24:20.880 --> 00:24:23.359
And there's always gonna be one natural saver in most relationships.
00:24:23.519 --> 00:24:24.079
Right, right.
00:24:24.319 --> 00:24:34.480
As a finance expert, should married couples have separate bank accounts or they have the same bank account or a little bit of both?
00:24:34.720 --> 00:24:35.039
That's right.
00:24:35.359 --> 00:24:36.319
What should they do?
00:24:36.640 --> 00:24:40.240
I believe um that they should have joint accounts.
00:24:40.400 --> 00:24:41.200
A joint account.
00:24:41.359 --> 00:24:43.200
If you ask me, I say joint account.
00:24:43.359 --> 00:24:43.599
Why?
00:24:43.680 --> 00:24:45.519
Why is that beneficial for the marriage?
00:24:45.680 --> 00:24:48.880
Because I think it's foundational, you know, because a marriage you're coming together.
00:24:49.039 --> 00:24:49.279
Okay.
00:24:49.440 --> 00:24:50.400
You know, you're not doing that.
00:24:50.559 --> 00:24:54.000
So it has nothing to do with finance, it has everything to do with togetherness.
00:24:54.240 --> 00:24:54.799
Togetherness.
00:24:54.960 --> 00:24:55.200
Okay.
00:24:55.440 --> 00:25:00.079
Every couple should have a weekly meeting, you know, when it comes to going over their finances.
00:25:00.480 --> 00:25:07.200
You know, if one couple, if one spouse spends a lot, you don't go to counsel and go to the uh to the spouse and be like, you're spending too much money.
00:25:08.079 --> 00:25:11.839
What you say is, how can we improve our spending?
00:25:12.319 --> 00:25:17.200
You know, so it's how we, you know, so it's not it's not um defensive, you know.
00:25:17.359 --> 00:25:25.119
Um, or if or if one spouse is um, let's say, uh getting a lot of debt, you know, they're putting it or they came in with some debt.
00:25:25.359 --> 00:25:26.240
Came in with some debt.
00:25:26.319 --> 00:25:26.480
Right.
00:25:26.720 --> 00:25:30.079
It's not about you have a lot of debt, you're creating too much debt.
00:25:30.319 --> 00:25:32.319
It's how can we eliminate it together?
00:25:32.640 --> 00:25:33.680
Eliminate it together, exactly.
00:25:34.160 --> 00:25:44.480
What should we be teaching our children about money so that they don't face some of the financial issues that we face as adults?
00:25:44.720 --> 00:25:45.359
That's right.
00:25:45.599 --> 00:25:48.720
So I think a lot of stuff is led by example.
00:25:49.200 --> 00:25:54.319
And what I mean by that is sometimes not always necessarily what you tell your children, it's what you show your children.
00:25:55.359 --> 00:26:01.920
You know, um, do my kids see me sitting down with my wife going over budget?
00:26:02.720 --> 00:26:04.960
It's a behavior, it's a learned activity.
00:26:05.680 --> 00:26:08.880
So you you can't say something and then do something totally different.
00:26:09.039 --> 00:26:09.279
Right.
00:26:09.519 --> 00:26:12.960
I know a lot of times people try to tell the kids about money, but they're not doing it themselves.
00:26:13.599 --> 00:26:15.759
You know, so first, be an example.
00:26:15.839 --> 00:26:16.079
Okay.
00:26:16.240 --> 00:26:17.839
I think that's gonna be that's gonna be key.
00:26:18.000 --> 00:26:18.240
Okay.
00:26:18.480 --> 00:26:23.359
Because um a child's not gonna be necessarily always interested in uh you know finances per se.
00:26:23.680 --> 00:26:23.839
Sure.
00:26:24.079 --> 00:26:25.279
But you can make it fun.
00:26:25.440 --> 00:26:28.079
And what I mean by that is allowances.
00:26:28.880 --> 00:26:32.160
First, you can have them learn how to work to be able to get that allowance.
00:26:32.240 --> 00:26:35.359
Don't just give it to them, you know, so it creates a work ethic.
00:26:36.079 --> 00:26:42.720
Then you want to teach a child how to save, give, and then spend.
00:26:42.880 --> 00:26:44.319
You know, so I love that.
00:26:44.480 --> 00:26:45.519
Save, give, and spend.
00:26:45.759 --> 00:26:46.559
Save, give, and spend.
00:26:46.720 --> 00:26:48.640
Why is that so critical to teach our children?
00:26:48.880 --> 00:26:52.799
Because it's if it's foundational and something you want to do throughout your entire life.
00:26:53.039 --> 00:26:55.519
You want you, you don't want to just save money, you know.
00:26:55.599 --> 00:26:56.720
Um, you want to be a giver.
00:26:56.799 --> 00:26:59.759
I think the giving is like the biggest thing that somebody can do.
00:26:59.920 --> 00:27:02.240
It gives you a feeling like no other when you're able to give.
00:27:02.799 --> 00:27:08.799
You know, um, whether it's like giving to church, you know, um, some people you want to do your giving on Sunday, right?
00:27:08.880 --> 00:27:12.240
Right, time by giving to an organization.
00:27:12.559 --> 00:27:12.960
Exactly.
00:27:13.200 --> 00:27:20.640
Because it teaches them more, it teaches them that only are we blessed to have this money, but we're also blessed to give some of this money too.
00:27:20.799 --> 00:27:21.119
Exactly.
00:27:21.279 --> 00:27:21.680
I love that.
00:27:21.839 --> 00:27:25.039
Okay, is there anything else we should be teaching our children about money?
00:27:25.440 --> 00:27:36.319
And also um budging, like we said, you start off small, you know, a kid wants candy, things of that nature, you know, showing them how to be intentional, you know, with their money early on.
00:27:36.559 --> 00:27:39.440
And then as they get older, it gets a little bit more advanced.
00:27:40.160 --> 00:27:42.880
And um, also start early.
00:27:43.119 --> 00:27:48.640
Teaching kids um, like if you want to set something aside, like invest it somewhere or something like that.
00:27:48.720 --> 00:27:49.039
I see.
00:27:49.200 --> 00:27:53.440
The earlier you start, the better because you have time on your side for compounded interest.
00:27:53.599 --> 00:27:53.839
Sure.
00:27:54.000 --> 00:27:59.279
So somebody that starts when they're 17 and 16 is gonna look a whole lot differently than somebody that starts when they're 40 years old.
00:27:59.759 --> 00:28:01.119
Sure, sure, sure, sure.
00:28:01.359 --> 00:28:07.279
Can someone earning$40,000 a year regularly save money and build wealth?
00:28:07.519 --> 00:28:08.640
Yes, is that possible?
00:28:08.880 --> 00:28:09.680
Yes, it's possible.
00:28:09.759 --> 00:28:11.599
Okay, but um, we gotta be realistic.
00:28:11.759 --> 00:28:19.519
Oh, you know, um$40,000 a year in one community, you know, may provide a different lifestyle than$40,000 in another community.
00:28:20.160 --> 00:28:28.400
And what I mean by that is that family size, housing costs, child care debt, health care expenses, all that stuff matters.
00:28:28.640 --> 00:28:29.440
All of it matters.
00:28:29.920 --> 00:28:32.079
But here's what I want people to understand.
00:28:32.960 --> 00:28:37.200
You know, um, building wealth isn't reserved exclusively for those people that make six figures.
00:28:37.920 --> 00:28:43.839
You know, it's about creating margin between what we earn and what you spend.
00:28:44.079 --> 00:28:44.559
Got it.
00:28:44.720 --> 00:28:47.119
You know, um, and then using that margin wisely.
00:28:47.200 --> 00:28:50.079
So maybe, you know, we start saving$10 a week.
00:28:50.160 --> 00:28:54.720
I'm starting small because not always necessarily about the dollar amount, it's about the habit.
00:28:55.359 --> 00:28:58.400
You know, um, and that but that's$520 a year.
00:28:58.799 --> 00:29:04.000
You know, if you add it over time, if you do it$10 a week, right, but um, is that going to make you wealthy overnight?
00:29:04.160 --> 00:29:05.759
No, right, absolutely not.
00:29:05.920 --> 00:29:06.000
Right.
00:29:06.240 --> 00:29:07.279
But it's it's a starting point.
00:29:07.519 --> 00:29:08.400
Right, right, right.
00:29:08.960 --> 00:29:16.319
Um, but as as your income increases and your debt decreases, you know, now you're able to set more aside so it looks a whole lot differently.
00:29:16.400 --> 00:29:19.599
You have a bigger, maybe a better financial picture from that standpoint.
00:29:20.480 --> 00:29:34.640
If you as a finance expert could give Americans three rules, three financial rules to live by, what would they be?
00:29:35.200 --> 00:29:38.559
First one, number one, spend less than what you earn.
00:29:38.799 --> 00:29:39.119
Okay.
00:29:39.839 --> 00:29:44.079
Number two, is don't use debt to finance your lifestyle.
00:29:44.960 --> 00:29:46.160
That's gonna be huge right there.
00:29:46.400 --> 00:29:47.119
Okay, okay.
00:29:47.440 --> 00:29:51.920
And number three, give every dollar a job.
00:29:52.240 --> 00:29:54.480
Be intentional, know what you're spending.
00:29:54.960 --> 00:29:57.200
I think those are three major key concepts.
00:29:57.359 --> 00:29:59.440
Or if I can give advice, that's what it'll be.
00:29:59.680 --> 00:29:59.920
Really?
00:30:00.000 --> 00:30:02.799
And why do those sit at the top of advice?
00:30:03.039 --> 00:30:05.119
Is because they do what for your life?
00:30:05.440 --> 00:30:10.880
Because it gives your it gives your it gives your life intention when it comes to your finances.
00:30:11.359 --> 00:30:13.759
Being intentional is what it's all about.
00:30:14.160 --> 00:30:21.119
And sometimes what I tell people is I tell them your today's situation does not have to be your tomorrow's destination.
00:30:21.359 --> 00:30:24.000
You know, so that is so good.
00:30:25.119 --> 00:30:26.960
That is so good, Quincy.
00:30:27.119 --> 00:30:28.880
That's gonna set a lot of people free right there.
00:30:29.039 --> 00:30:29.680
Yes, sir.
00:30:29.839 --> 00:30:30.559
That's good.
00:30:30.720 --> 00:30:33.920
But this is why we gotta be intentional about every dollar.
00:30:34.240 --> 00:30:34.720
Bingo.
00:30:34.880 --> 00:30:40.480
Yeah, this is probably well, Quincy, I've had so much uh fun sitting here talking to you.
00:30:40.640 --> 00:30:43.519
I hope that people got something from our conversation.
00:30:43.759 --> 00:30:46.799
I hope that they learned something from our conversation.
00:30:47.039 --> 00:30:53.920
And uh if the people want to contact you, if they want you to help them with their finances, how can they get in contact with you?
00:30:54.160 --> 00:31:03.119
They can always um email me, coachway moneytips at gmail.com, as tips with an S at the end, phone number 706 418 6964.
00:31:03.359 --> 00:31:03.599
Okay.
00:31:03.759 --> 00:31:05.680
Well, thank you so much, Quincy, for joining me.
00:31:05.920 --> 00:31:06.480
Hey, thank you.
00:31:07.279 --> 00:31:11.119
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