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information duties and responsibilities. Developed a full service agency, they
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can help you with all things sports information. SID Services
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will not graduate or lead for another school. Instead, they
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will provide an ongoing and knowledgeable resource for the entire
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athletic department. Their game plan will be based off your needs,
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your wants, and your wishes. Your direction will lead their services.
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For more information and schedule an initial consultation, contact them today.
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That's info at sid services dot com and their website
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is sid services dot com.
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Whright, we're back with the second part, Quarter two of
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creating your Financial Playbook for Coaches by Coach bo Page.
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Excited to share this resource for coaches. It helps us
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to cut people out to be worth it. Man, A great,
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great topic you'll probably don't talk about enough, So Coach Paige,
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just get into quarter two.
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Take it away, all right? Kind of getting into the
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second quarter of financial literacy, and I'm gonna get I'm
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trying not to get too technical here, but I think
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there's some things that I've learned that that I really,
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you know, wish I had known earlier on, or some
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concepts that I had known earlier on. And I'll kind
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of go through each one not try to get too
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technical with it. The first one is the concept of
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pay yourself first. With the fact that teachers get paid,
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you know, at the beginning of the month. This one
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is highly critical. You need to automatically invest in each paycheck,
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just basically set it up like a system. The more
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you can automate your systems, you know, the more you have.
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It's just like if your alarm set, you're gonna wake
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up at the same time every morning. You need to
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set aside part of every paycheck for investing. Most experts,
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I think would say from ten to fifteen percent of
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your take home pay. But if you can't do ten
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to fifteen percent, then that's fine. Anything is better than nothing.
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I think sometimes that can be a big turn off
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as people here like, oh, I need to give ten
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or fifteen percent of my take home for investing, Like
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I can't do that, So I'm just not going to invest. Well.
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If you can't do ten or fifteen, do one percent.
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Anything is better than nothing. So and also don't be
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discouraged if you hit up one of those emergencies or
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life throws you a curve ball. If you have to
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hit pause, hit pause. But I think the biggest thing
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is most people live income minus expenses equals savings. So
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what I bring in plus what goes out whatever's left
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over is my savings. But people that are real wealth
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accumulators live income minus savings equals my expenses. So when
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I get my monthly check, my savings automatically go out
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and what is left becomes my expenses for that month.
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And then you know, I'll just add that September paychecks
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are a great time to increase that. If you had
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to start at one percent or three percent or five percent,
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you know, September you get that paybomp, go ahead and
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increase your contribution so that you never really feel the
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difference between, you know, the August paycheck to the September paycheck.
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That is that is something you know, I've done the
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last couple of years and it's been really successful. The
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next concept, let your money work for you. So, you know,
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we want to buy assets versus liabilities. In the general terms,
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assets pay returns. Liabilities have costs and consequences. These assets
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or things like homes. You know, it helps you to
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build additional income streams limits idle cash. And I think
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a lot of a lot of young coaches, you know,
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graduate and the first thing they want to do is
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go buy a brand new car. Well, the second you
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drive off the lot, that card appreciates immensely. So you know,
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a car, although it gets you to and from work,
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a car is a liability. You know. A home is
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an asset. And I think I think you have to
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not chase the floor. I think you have to not
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compare yourself to others. And if you do that, you
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know you can build these different income streams and set
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yourself up for success. The next concept is dollar cost averaging.
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Once you start investing right, dollar cost averaging means that
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you pick a certain amount of time for us. I
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think it works really good if that amount of time
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is every month when you get your paycheck, but you
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want to invest into the market consistently over that amount
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of time. If I told all these football coaches, hey,
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you know, there's there's a sell at Nike, or there's
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a sell at Dick's Sporting Goods, and everything is fifty
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percent off. You know, every coach listening to the podcast
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would get in the car and drive to Nike. You
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drive the Dix and load up the cart. But when
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you start talking about investing, you know the stock market
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has its ebbs and flows. You start talking about, well,
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the market's gonna go down for me. I know I'm
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buying into the market equally every month. If the market
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goes down, it doesn't affect my emotions. I just got
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a discount. I got to fifty percent off at Nike
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right when the market goes down. So I ignore emotions.
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I stay the course, I put in the same amount,
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I buy the same high quality index funds, and I
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move on with my day. And if it goes up
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and goes down, you know, if it goes up truly
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and I'm buying in and I'm not close to retirement,
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I'm getting less for my money. And I think that
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separating emotions from investing has to be part of it. So,
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just as an example, ten days, right, So if you
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miss the ten best days of the market over a
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thirty year period from nine, eighteen ninety five to two
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thousand and five, the average return was reduced from eight
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point four percent to two point one percent. And I
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say that to say timing the market is extremely difficult.
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Don't don't try to talk time the market. Don't you know,
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don't see a clip on X or TikTok, you know
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about some stock that's about to blow up. Just consistently
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be boring, put your money in the market, and just
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trust the process. So I think the other thing that's
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important to know is that the income is not wealth.
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Right.
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So my definition of wealth is the number of days
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that I could live at my current lifestyle if I
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stopped working today before my money ran out right. True, Well,
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to me is time is time freedom? Right? And then
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chase savings rates over salary. Right. There's not a lot
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that we can we can do to impact our salary.
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Right.
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We talked about education side of it, but what the
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things we can impact is things like savings rate, like
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how much I save each month or instead of you know,
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maybe buying the seven eight hundred, you know, thousand dollars
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home in what I deem to be the fanciest district,
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I find a house that's much more reasonable, that's close
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to work, and don't chase status symbols. Some of the
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things you see on the internet are they're just fake.
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You can't see. You're not giving privy into people's bank accounts.
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So you see a guy driving a flashy car, you
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don't know whether he's behind on payments or if it's
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paid in full. I think a pretty telling number is
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forty percent. So forty percent in a study on American
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households of incomes over three hundred thousand showed that roughly
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forty percent live paycheck to paycheck. Right, So you know,
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teachers are the second largest group of millionaires in the
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United States, the only one that's hire as engineers. And
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I think that that's telling because I do think that
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that obviously, our pension is really good, but I do
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think that there are a lot of teachers who who
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save appropriately and who who do it over the lifetime
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of their career, and that, combined with your pension, I
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think leads to such a high number of millionaires. So
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just some formulas that that I think are are really
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cool to look at, and I won't necessarily read off
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the formulas, but go find a compound interest calculator. There's
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several really good ones on the and that all you
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have to do is go google compound interest calculator and
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start messing around with savings rates, the number of years
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and and you know the value that you put in
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each month, and start seeing what it takes. You know,
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what does it take to be a millionaire? If you're
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a young coach and you go pull up one of
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those compound interest calculators, start plugging in you know, twenty
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five thirty years of your coaching career and look at
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them out it would take to make you a millionaire,
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and it's not unreasonable. Time is the is the biggest key,
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and so a compound interest calculator will show you that.
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The next is the rule of seventy two. I think
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this is a really easy way to kind of understand
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how how money doubles. So basically, it's seventy two divided
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by the annual interest rate equals the number of years
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it takes for your money to double. But in layman terms,
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so here's an example. It means over a thirty year career,
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your money will double three times if you can just
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get an interest rate of seven point two percent, and
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it'll it'll double four times at an interest rate of
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ten percent. So anyway, kind of just then interesting rule
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to see how often money can double at different at
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different interest rates. Target networth again, so this is age
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times pre tax income divided by ten gives you supposed
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target networth. So for an example, if you're a forty
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year old coach who makes one hundred thousand dollars a year,
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your target net worth is four hundred thousand. And then
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the one cam a month rule, and this is something
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that I got red Wes Moss's book, But essentially, if
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you have two hundred and forty thousand dollars saved up
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and it's gaining at a five percent interest rate, basically
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that's twelve thousand dollars a year, which is one thousand
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dollars a month. So the one thousand dollars a month
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rule basically tells me that I add a five percent
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interest rate, I need to have two hundred and forty
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thousand dollars saved up. So I think that's important to
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know as we talk about gap years coming up to
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kind of get in your head that if I have
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two hundred and forty thousand dollars saved up and it
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is earning at five percent, which you can almost guarantee,
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do you know, achieved through a high yield savings account
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or a money market account. Basically you'll generate one thousand
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dollars a month without having to you know, touch the
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two hundred and forty thousand dollars you have saved up.
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So this quote, proper prep operation is key to our success.
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Our acts can be no wiser than our thoughts, and
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our thinking can be no wiser than our understanding. That's
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from the richest man in Babylon, and basically it's saying,
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you know, basically, our actions can't be any wiser than
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we are. You know, I've been lucky and I've stumbled
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into some really good things, but they were just accidents financially. Hopefully,
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now as I know more, I'll make better decisions moving forward,
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or at least that's the general plan.
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All right. That's gonna wrap up our second quarter on
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my financial literacy coach. Appreciate you doing this series man
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four parts, half time to quarters down. We'll see you
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next time.
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Parker Resource podcast was brought to you by our platinum sponsor,
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SID Services.
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Ads and Coaches.
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Does the idea of a sports information department at your
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school sound appealing? Sid Services was founded with one goal
6
00:00:12.519 --> 00:00:15.519
in mind, help athletic directors and coaches with their sports
7
00:00:15.519 --> 00:00:19.920
information duties and responsibilities. Developed a full service agency, they
8
00:00:19.920 --> 00:00:23.440
can help you with all things sports information. SID Services
9
00:00:23.480 --> 00:00:26.199
will not graduate or lead for another school. Instead, they
10
00:00:26.239 --> 00:00:29.719
will provide an ongoing and knowledgeable resource for the entire
11
00:00:29.760 --> 00:00:33.079
athletic department. Their game plan will be based off your needs,
12
00:00:33.359 --> 00:00:37.359
your wants, and your wishes. Your direction will lead their services.
13
00:00:37.759 --> 00:00:41.560
For more information and schedule an initial consultation, contact them today.
14
00:00:42.039 --> 00:00:47.520
Sid Services email is info at sidh services dot com.
15
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That's info at sid services dot com and their website
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is sid services dot com.
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Whright, we're back with the second part, Quarter two of
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creating your Financial Playbook for Coaches by Coach bo Page.
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Excited to share this resource for coaches. It helps us
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to cut people out to be worth it. Man, A great,
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great topic you'll probably don't talk about enough, So Coach Paige,
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just get into quarter two.
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Take it away, all right? Kind of getting into the
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second quarter of financial literacy, and I'm gonna get I'm
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trying not to get too technical here, but I think
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there's some things that I've learned that that I really,
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you know, wish I had known earlier on, or some
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concepts that I had known earlier on. And I'll kind
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of go through each one not try to get too
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technical with it. The first one is the concept of
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pay yourself first. With the fact that teachers get paid,
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you know, at the beginning of the month. This one
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is highly critical. You need to automatically invest in each paycheck,
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just basically set it up like a system. The more
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you can automate your systems, you know, the more you have.
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It's just like if your alarm set, you're gonna wake
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up at the same time every morning. You need to
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set aside part of every paycheck for investing. Most experts,
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I think would say from ten to fifteen percent of
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your take home pay. But if you can't do ten
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to fifteen percent, then that's fine. Anything is better than nothing.
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I think sometimes that can be a big turn off
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as people here like, oh, I need to give ten
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or fifteen percent of my take home for investing, Like
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I can't do that, So I'm just not going to invest. Well.
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If you can't do ten or fifteen, do one percent.
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Anything is better than nothing. So and also don't be
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discouraged if you hit up one of those emergencies or
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life throws you a curve ball. If you have to
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hit pause, hit pause. But I think the biggest thing
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is most people live income minus expenses equals savings. So
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what I bring in plus what goes out whatever's left
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over is my savings. But people that are real wealth
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accumulators live income minus savings equals my expenses. So when
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I get my monthly check, my savings automatically go out
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and what is left becomes my expenses for that month.
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And then you know, I'll just add that September paychecks
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are a great time to increase that. If you had
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to start at one percent or three percent or five percent,
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you know, September you get that paybomp, go ahead and
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increase your contribution so that you never really feel the
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difference between, you know, the August paycheck to the September paycheck.
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That is that is something you know, I've done the
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last couple of years and it's been really successful. The
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next concept, let your money work for you. So, you know,
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we want to buy assets versus liabilities. In the general terms,
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assets pay returns. Liabilities have costs and consequences. These assets
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or things like homes. You know, it helps you to
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build additional income streams limits idle cash. And I think
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a lot of a lot of young coaches, you know,
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graduate and the first thing they want to do is
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go buy a brand new car. Well, the second you
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drive off the lot, that card appreciates immensely. So you know,
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a car, although it gets you to and from work,
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a car is a liability. You know. A home is
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an asset. And I think I think you have to
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not chase the floor. I think you have to not
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compare yourself to others. And if you do that, you
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know you can build these different income streams and set
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yourself up for success. The next concept is dollar cost averaging.
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Once you start investing right, dollar cost averaging means that
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you pick a certain amount of time for us. I
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think it works really good if that amount of time
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is every month when you get your paycheck, but you
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want to invest into the market consistently over that amount
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of time. If I told all these football coaches, hey,
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you know, there's there's a sell at Nike, or there's
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a sell at Dick's Sporting Goods, and everything is fifty
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percent off. You know, every coach listening to the podcast
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would get in the car and drive to Nike. You
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drive the Dix and load up the cart. But when
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you start talking about investing, you know the stock market
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has its ebbs and flows. You start talking about, well,
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the market's gonna go down for me. I know I'm
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buying into the market equally every month. If the market
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goes down, it doesn't affect my emotions. I just got
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a discount. I got to fifty percent off at Nike
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right when the market goes down. So I ignore emotions.
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I stay the course, I put in the same amount,
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I buy the same high quality index funds, and I
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move on with my day. And if it goes up
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and goes down, you know, if it goes up truly
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and I'm buying in and I'm not close to retirement,
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I'm getting less for my money. And I think that
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separating emotions from investing has to be part of it. So,
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just as an example, ten days, right, So if you
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miss the ten best days of the market over a
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thirty year period from nine, eighteen ninety five to two
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thousand and five, the average return was reduced from eight
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point four percent to two point one percent. And I
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say that to say timing the market is extremely difficult.
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Don't don't try to talk time the market. Don't you know,
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don't see a clip on X or TikTok, you know
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about some stock that's about to blow up. Just consistently
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be boring, put your money in the market, and just
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trust the process. So I think the other thing that's
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important to know is that the income is not wealth.
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Right.
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So my definition of wealth is the number of days
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that I could live at my current lifestyle if I
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stopped working today before my money ran out right. True, Well,
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to me is time is time freedom? Right? And then
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chase savings rates over salary. Right. There's not a lot
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that we can we can do to impact our salary.
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Right.
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We talked about education side of it, but what the
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things we can impact is things like savings rate, like
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how much I save each month or instead of you know,
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maybe buying the seven eight hundred, you know, thousand dollars
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home in what I deem to be the fanciest district,
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I find a house that's much more reasonable, that's close
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to work, and don't chase status symbols. Some of the
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things you see on the internet are they're just fake.
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You can't see. You're not giving privy into people's bank accounts.
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So you see a guy driving a flashy car, you
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don't know whether he's behind on payments or if it's
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paid in full. I think a pretty telling number is
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forty percent. So forty percent in a study on American
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households of incomes over three hundred thousand showed that roughly
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forty percent live paycheck to paycheck. Right, So you know,
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teachers are the second largest group of millionaires in the
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United States, the only one that's hire as engineers. And
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I think that that's telling because I do think that
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that obviously, our pension is really good, but I do
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think that there are a lot of teachers who who
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save appropriately and who who do it over the lifetime
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of their career, and that, combined with your pension, I
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think leads to such a high number of millionaires. So
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just some formulas that that I think are are really
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cool to look at, and I won't necessarily read off
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the formulas, but go find a compound interest calculator. There's
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several really good ones on the and that all you
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have to do is go google compound interest calculator and
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start messing around with savings rates, the number of years
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and and you know the value that you put in
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each month, and start seeing what it takes. You know,
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what does it take to be a millionaire? If you're
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a young coach and you go pull up one of
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those compound interest calculators, start plugging in you know, twenty
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five thirty years of your coaching career and look at
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them out it would take to make you a millionaire,
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and it's not unreasonable. Time is the is the biggest key,
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and so a compound interest calculator will show you that.
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The next is the rule of seventy two. I think
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this is a really easy way to kind of understand
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how how money doubles. So basically, it's seventy two divided
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by the annual interest rate equals the number of years
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it takes for your money to double. But in layman terms,
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so here's an example. It means over a thirty year career,
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your money will double three times if you can just
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get an interest rate of seven point two percent, and
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it'll it'll double four times at an interest rate of
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ten percent. So anyway, kind of just then interesting rule
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to see how often money can double at different at
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different interest rates. Target networth again, so this is age
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times pre tax income divided by ten gives you supposed
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target networth. So for an example, if you're a forty
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year old coach who makes one hundred thousand dollars a year,
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your target net worth is four hundred thousand. And then
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the one cam a month rule, and this is something
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that I got red Wes Moss's book, But essentially, if
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you have two hundred and forty thousand dollars saved up
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and it's gaining at a five percent interest rate, basically
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that's twelve thousand dollars a year, which is one thousand
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dollars a month. So the one thousand dollars a month
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rule basically tells me that I add a five percent
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interest rate, I need to have two hundred and forty
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thousand dollars saved up. So I think that's important to
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know as we talk about gap years coming up to
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kind of get in your head that if I have
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two hundred and forty thousand dollars saved up and it
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is earning at five percent, which you can almost guarantee,
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do you know, achieved through a high yield savings account
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or a money market account. Basically you'll generate one thousand
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dollars a month without having to you know, touch the
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two hundred and forty thousand dollars you have saved up.
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So this quote, proper prep operation is key to our success.
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Our acts can be no wiser than our thoughts, and
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our thinking can be no wiser than our understanding. That's
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from the richest man in Babylon, and basically it's saying,
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you know, basically, our actions can't be any wiser than
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we are. You know, I've been lucky and I've stumbled
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into some really good things, but they were just accidents financially. Hopefully,
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now as I know more, I'll make better decisions moving forward,
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or at least that's the general plan.
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All right. That's gonna wrap up our second quarter on
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my financial literacy coach. Appreciate you doing this series man
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four parts, half time to quarters down. We'll see you
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next time.
