On Take It To The Bank,
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you will find ways
to get out of debt.
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Solve your credit card problems.
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How to make and
stick with a budget.
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Simple ways to save.
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Buying or selling a home,
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and many more financial
matters on Take It To The Bank.
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Hi, am Cordell Thomas,
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and I welcome you
to Take It To The Bank.
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Toady, we're going to talk
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about something that's
kind of interesting to me,
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kind of, it
really is interesting
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because its take me
back to a time in my life
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that I have to leave home.
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I stayed and leaved at home
until I was well into my 20's.
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But when its time to leave home,
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it was an trigging prospective
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on understanding the real
expense of living on your own.
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Its kind of intriguing
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because we do
financial literacy courses
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as part of our organization
and teach young people
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about what financial
literacy is all about.
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It was interesting to
me, at one of those programs
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we talked to a
group of young people
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and we invite the
parents come in to the program.
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And we have one
parents sitting in the back,
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and she came out with a question
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that I had to respond to.
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In the conversation, she...
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I asked her the question about,
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"Does your child
know about how much money
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you spend in your budget?"
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And it was
interesting, her response
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because, "No, the
child didn't know."
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And her child was
sitting right in front of me.
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And then I asked,
"How much do you spend
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for food every month?"
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Now the mother was
good because she said,
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"We keep a good budget
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and we spend approx $750 a month
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for food."
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The response from
the child was interesting
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because she had no
clue that was what's spend.
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And it takes us back to
generational differences
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in how we
approach the educational
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of our young people on
financial literacy issues.
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When I was a child, I
had baby-boomer parent
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who, the mom stayed at
home and the dad went to work
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and he kept the finances
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and mom kept this
comfortable at home,
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and I dint really hear
too much between the two
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about how much was spent on food
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and what was utility cost,
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and those type of issues.
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So I ran kind of blind.
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And then me as an individual,
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the Gen-X are
growing up through,
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the '70s, '80s, and '90s,
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I gained the prospective
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from the communities we live in,
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from of the media that it
was good to be a consumers.
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So I grew up as a consumer,
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wanting to keep
up with the Jones'
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on the other yards
and those types of things.
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And then, going to the
college and coming home,
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staying home for a little while
was a good way of saving money.
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Okay.
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So, then came
the time in my life
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where I went back
and completed my degree,
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my postgraduate degree
and found a job in California.
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So, the company, as
a part of the offer,
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offered moving expenses,
offered a car when I got their,
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offered a vary of things.
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So I was still a little jaded
as I moved out to California
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and didn't realize how much
went into actual moving costs,
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went into the
actual purchase of a car
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and the resultant
expenses associated with that.
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And it became a
learning experience for me.
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I still remembered
that day that I left,
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I mean, I remembered the movers
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had all stuff over
all our front yard,
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they were boxing things
up, putting things on a truck.
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My mom was a little upset
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because she said her little
baby boy was leaving home.
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I am 29, mom, and
I'm still a little boy.
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But that's okay.
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I left home and realize that
the context of what I was doing
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was actually growing
up to a certain extend
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and beginning to take
responsibility for my life.
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But what happen
over the next few months
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and the next few years
was very enlightening to me,
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because I learnt a lot of things
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on an ongoing bases
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that were relevant that
I should share with you.
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Consider when you
moved on your own,
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consider what you did
to find the apartment.
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Did you rent the apartment?
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Did you lease the apartment?
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Is renting and
leasing the same thing?
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Did you understand the
context of what clauses are
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in the use of
signing a lease agreement?
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Buying a car.
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How much does it
cost to buy a car?
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Do I put zero down?
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Do I put the most
amount of money down on a car?
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Do I... and how do I
pay off the balances?
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What are the cost
associated with using a car
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and having a car?
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Is it better for me to
just use public transportation?
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Is...
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are their other
expenses in the car acquisition
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that I need to be aware of?
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What are the
things are there out there
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that I need to aware of?
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How do I buy groceries?
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Well, as a single adult,
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I didn't necessary
buy as much glossaries,
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I lived on my own,
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and I went out constantly to eat
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because I didn't want to
spend time cooking at home.
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I spend a lot of
money out in restaurants,
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that's what we did
back in those days,
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because I had extra
money to do what I need to do
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and that type of thing.
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So I didn't really consider
this issue called Saving.
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And I was young,
I was up in coming,
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and I was doing a
great job in marketing
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with this organization.
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All of these
experiences in your life
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tell you that there's a lots
of things that go into living.
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I didn't have roommate
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because I have specific concerns
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about are they going be like me,
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are they going to be loud,
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you know, play
weird kind of music?
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And so I decided you know,
I'm going to wing it on my own.
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Did you know that my
rental expenses back in 1996
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for two-bedroom
apartment was $950 a month?
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And I rent it initially
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and I didn't have control
over the increase in rent.
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In fact, because I was renting
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I didn't sign a lease agreement,
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they had every
right to raise the rent,
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and it went up to almost $1,150
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within the first
six to seven months.
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I did sign a lease agreement
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and then staying
there for additional year,
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but in leasing verses renting
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your lease tells you that
they cant increase the rent
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or the amount you
pay for that apartment
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while you're in the
clause of that lease.
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Lots of little
things that I have to learn
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as a young person.
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And I think that
as we take a look
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at living within your means,
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it's essential that
we begin the conversation
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with our young people
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about the cost of owning a car,
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and the cost of
owning a bike, a bicycle.
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Making sure you have the
helmet and the safety attire
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that are important to
keep kids as safer as possible.
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If your children are watching
you and emulating what you do,
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the key to living on your
own and teaching kids about that
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concern of breaking
away from the household
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and moving out
on their own is key.
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Credit is also another issue
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that most people
don't think about,
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and how we
educate our young people
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on these credit issue.
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We also haven't thought about
the fact that debit card exists
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and can also
provide opportunities
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for decreasing
amount of interest you pay
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on the use of a specific card.
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We find that a lot
of credit card companies
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are pushing, are pushing credit
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as the way to live
and that you need that.
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I don't think
that's necessary the case.
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And I think we need to
take a look collectively
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at living on your own
and understanding the context
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of how we
educate our young people.
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Not only on credit but
on making the right decision
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and understanding
that it's essential
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that they read the fine print
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and understand the context
of what they're getting into
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as an obligations
to that other company.
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Let's take a moment
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and look at what
the Bible actually says
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about being responsible.
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We see in Luke
12:13, 14, and 15.
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It talks about man's life,
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it does not
consistent in the abundance
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of one's possession.
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Luke is the book
in the New Testament,
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Matthew, Mark,
Luke, Luke 12:13-15.
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Possession isn't
the key idem here,
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but it is something
that I got caught up in.
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I got caught up in
the consumerable...
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consumerism
environment of California
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and begin the
process of buying things,
00:09:02.04\00:09:06.57
and acquiring things that
really had no place to play
00:09:06.61\00:09:11.51
in developing my talents
00:09:11.55\00:09:15.28
that God has given me.
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It is an
embracement at certain times
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because I went out and did
frivolous things with money.
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And in learning from my past,
I now can look forward and say,
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I am trying to do what's right
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with the funds there
are entrusted upon me.
00:09:31.83\00:09:35.60
There's a second verse
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that I really want you
to look out and that's key.
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Its in 1 Corinthians,
00:09:40.14\00:09:41.88
1 Corinthians is
after Acts and Romans,
00:09:41.91\00:09:44.85
and those two books
are after the gospels.
00:09:44.88\00:09:47.68
1 Corinthians 4:2, and
it basically states that,
00:09:47.72\00:09:51.92
"A steward is that is faithful."
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A steward, one
that is entrusted,
00:09:56.09\00:09:58.93
is trusted with something.
00:09:58.96\00:10:00.43
And you find that being key
in the Parable of the Talent.
00:10:00.46\00:10:06.23
So as you look at your
life and look at your children,
00:10:06.27\00:10:10.61
make sure that
you begin the process
00:10:10.64\00:10:12.37
of conveying to them the
importance of giving back,
00:10:12.41\00:10:15.81
of tithing, of understanding
the capacity of what financial,
00:10:15.84\00:10:20.25
management financial
literacy is all about.
00:10:20.28\00:10:23.39
I talk to Regain
Manning about the same issue
00:10:23.42\00:10:26.76
and I'd like to bring
her into this conversation
00:10:26.79\00:10:28.82
and ask the question about,
00:10:28.86\00:10:31.43
"What do you
consider a parent's role?"
00:10:31.46\00:10:33.16
Regina.
00:10:33.19\00:10:36.23
Start teaching your child today
00:10:36.26\00:10:38.43
and start
teaching yourself today,
00:10:38.47\00:10:40.60
prepare yourself
to teach your child.
00:10:40.64\00:10:42.80
You wait till they
are in high school,
00:10:42.84\00:10:45.24
as far as or close to
high school for driving,
00:10:45.27\00:10:48.11
you teach them everything.
00:10:48.14\00:10:49.48
From the minute your
child receives a penny
00:10:49.51\00:10:51.55
is the beginning
of when you start,
00:10:51.58\00:10:53.58
showing them what money is,
00:10:53.62\00:10:55.42
and that the value of it,
00:10:55.45\00:10:57.22
but not everything in the world.
00:10:57.25\00:10:58.75
So start today, educating
yourself and your children.
00:10:58.79\00:11:01.59
The process of
educating yourself on budgeting
00:11:04.13\00:11:06.73
and as well as living on
your own is constant process
00:11:06.76\00:11:09.16
because things change.
00:11:09.20\00:11:10.53
Cost of living changes,
00:11:10.57\00:11:11.90
many different
things come into our lives
00:11:11.93\00:11:13.74
and put hiccups in
through your budgets
00:11:13.77\00:11:15.77
or theoretical budgets because
many of us don't keep budgets.
00:11:15.80\00:11:18.47
But the first thing
that we should be always do
00:11:18.51\00:11:21.11
is to have a budget.
00:11:21.14\00:11:22.61
And to teach your kids
about the benefits of budgeting
00:11:22.64\00:11:26.88
and planning for unexpected.
00:11:26.92\00:11:30.09
The other issue is
we should teach them
00:11:30.12\00:11:32.25
about living their own,
about what it costs to live,
00:11:32.29\00:11:35.52
about how much it
cost for groceries,
00:11:35.56\00:11:38.29
and how much it cost to
spend money on heating bills
00:11:38.33\00:11:41.60
and what the water cost bill be.
00:11:41.63\00:11:43.57
You know, some
times you're just like
00:11:43.60\00:11:44.93
standing in the shower
00:11:44.97\00:11:46.30
and letting the
water run over us,
00:11:46.33\00:11:47.67
and the water
runs and runs and runs,
00:11:47.70\00:11:49.30
and don't realize that
00:11:49.34\00:11:51.07
water
conservation is the key issue,
00:11:51.11\00:11:52.97
its not having
to be spent thrift,
00:11:53.01\00:11:56.61
but using the resources we're
given in the right type of way.
00:11:56.64\00:12:00.98
So here are some
thing I would talk to you
00:12:01.02\00:12:03.02
about talking, teaching your
kids about living on their own
00:12:03.05\00:12:07.36
and what to budget for.
00:12:07.39\00:12:08.76
Number one is, how much will
your bedroom furnishings cost?
00:12:08.79\00:12:12.89
Where will you get
your bedroom furnishings?
00:12:12.93\00:12:14.96
What budget
have you put in place
00:12:15.00\00:12:18.07
to pay for your
bedroom furnishing?
00:12:18.10\00:12:21.24
Many of us don't
even think about that,
00:12:21.27\00:12:22.64
we get into the
place and we go out
00:12:22.67\00:12:24.77
without even thinking about it
00:12:24.81\00:12:26.14
and buy, consume, based on
what is in the best bet for us.
00:12:26.17\00:12:30.85
There are discount
change that can offer benefits
00:12:30.88\00:12:35.18
and offer resources
that can help support
00:12:35.22\00:12:37.59
those specific cost.
00:12:37.62\00:12:39.39
But when your looking at
what a bedroom cost to furnish,
00:12:39.42\00:12:43.32
you have to take a look at what?
00:12:43.36\00:12:44.69
Is it just a bed? No.
00:12:44.73\00:12:46.06
It could cost for
furniture, a night stand,
00:12:46.09\00:12:49.36
you can talk about rugs,
00:12:49.40\00:12:51.20
and then off course you need
the linens to put on the bed.
00:12:51.23\00:12:53.67
And then off course,
00:12:53.70\00:12:55.04
there may be electronic such as,
00:12:55.07\00:12:56.40
oh, yes, teach your
student about that alarm clock
00:12:56.44\00:12:59.77
because they need to wake
up on time to get the school.
00:12:59.81\00:13:02.58
You know it's interesting
about this new generation,
00:13:02.61\00:13:05.55
because they go away to school
00:13:05.58\00:13:07.22
and they wake up
00:13:07.25\00:13:08.88
because parents are now called
helicopter mom's and dad's
00:13:08.92\00:13:12.25
that are constantly
hovering around your kids
00:13:12.29\00:13:14.96
to insure they are as
successful as possible.
00:13:14.99\00:13:17.29
So you call your kids up
all the time, and you say,
00:13:17.33\00:13:18.99
"Hey, how are
the things at school?
00:13:19.03\00:13:20.46
Is everything okay?"
00:13:20.50\00:13:21.83
"Yeah, mom, everything is cool.
00:13:21.86\00:13:23.97
Everything is great.
00:13:24.00\00:13:25.33
I got my room,
everything is comfortable.
00:13:25.37\00:13:27.00
But, hey, could you
log on to my account
00:13:27.04\00:13:31.17
and can you wire me a
couple of hundred dollars?
00:13:31.21\00:13:33.58
Can you actually buy my books
charges to your credit card?
00:13:33.61\00:13:37.01
And oh, by the
way, can you get online
00:13:37.05\00:13:39.55
and sign me up for the
classes that I've missed?"
00:13:39.58\00:13:41.68
Many of the kids are independent
00:13:41.72\00:13:44.59
but very dependent.
00:13:44.62\00:13:45.95
And in fact, when we look
at the millennial generation,
00:13:45.99\00:13:48.39
they are extremely
closed to their parents.
00:13:48.42\00:13:51.49
And even with
independents and moving on,
00:13:51.53\00:13:53.86
you still have the
capacity for the parents
00:13:53.90\00:13:55.76
to monitor their behavior,
00:13:55.80\00:13:57.40
to monitor what's going
on and to keep in real time
00:13:57.43\00:14:00.47
and real touch
with the young people
00:14:00.50\00:14:02.80
that are off at school.
00:14:02.84\00:14:04.77
So they can get
access to funds they needed,
00:14:04.81\00:14:06.78
they may have the credit card,
00:14:06.81\00:14:08.14
which is another
issue we need to talk about.
00:14:08.18\00:14:09.94
But in furnishing their
rooms, you got to teach them,
00:14:09.98\00:14:12.08
its not just about a
bed, its about the bed,
00:14:12.11\00:14:14.88
the furnishings and
all those other elements
00:14:14.92\00:14:16.89
that go along with it.
00:14:16.92\00:14:18.35
And of course, now
kids are talking about
00:14:18.39\00:14:20.82
stereos and
speakers and iPads and iPods
00:14:20.86\00:14:24.89
and all these
other type of elements
00:14:24.93\00:14:26.36
that may not be as
necessary as we think they are.
00:14:26.39\00:14:30.37
Okay, so you are in
your two-bedroom apartment
00:14:30.40\00:14:32.20
and you got to consider a
couple of different issues.
00:14:32.23\00:14:35.50
What goes in to a
two-bedroom apartment?
00:14:35.54\00:14:39.47
Oh, there is a kitchen?
00:14:39.51\00:14:41.38
Yes, there is a living
room, there is a dinning room.
00:14:41.41\00:14:44.55
Possibly, they t could be merge.
00:14:44.58\00:14:46.41
There's a bedroom
one, there's bedroom two,
00:14:46.45\00:14:49.18
there is a bathroom.
00:14:49.22\00:14:50.89
There are creature comforts
that you need to bring in
00:14:50.92\00:14:54.02
to your new living place.
00:14:54.06\00:14:56.49
And many of us
don't think and consider
00:14:56.52\00:14:59.93
that in that living
space it costs to furnished.
00:14:59.96\00:15:03.26
I learnt that, I
learnt it the real way,
00:15:03.30\00:15:05.73
because not only did I
have that overhead expense
00:15:05.77\00:15:08.20
of $950 a month in rent
00:15:08.24\00:15:11.14
but I also had heat, I
had cable, I had light.
00:15:11.17\00:15:14.58
Oh, yes, I was making
a relatively good salary,
00:15:14.61\00:15:16.98
but all of that
begin to get eroded from
00:15:17.01\00:15:19.91
because one, I
didn't have my budget set,
00:15:19.95\00:15:22.78
so I didn't know exactly
00:15:22.82\00:15:24.45
how much I am going
to allocate to rent,
00:15:24.49\00:15:27.32
for the acquisition...
00:15:27.36\00:15:28.69
And I did not save
for the acquisition
00:15:28.72\00:15:30.39
of this property that I
need to furnished the apartment.
00:15:30.43\00:15:34.93
So what happened was I
would take out my credit card
00:15:34.96\00:15:40.00
and I would go and get
the immediate gratification
00:15:40.04\00:15:43.61
of all that I needed
and put it in the apartment.
00:15:43.64\00:15:46.78
It was a wrong move because
I got immediately in debt,
00:15:46.81\00:15:49.28
took my time buying
that kind of stuff off.
00:15:49.31\00:15:51.45
It was my first
and immediate exposure
00:15:51.48\00:15:54.58
to what it was to
furnish a two-bedroom apartment.
00:15:54.62\00:15:59.09
And then of course, you
have to live the lifestyle,
00:15:59.12\00:16:01.12
you can let the people
know you're having a problem
00:16:01.16\00:16:03.29
and there's a
concern with that lifestyle.
00:16:03.32\00:16:05.86
These are conversation
00:16:05.89\00:16:07.23
that you need to actively
have with your young people
00:16:07.26\00:16:09.73
and teach them about
money and how money is handled,
00:16:09.76\00:16:13.84
and what you need to do
in certain circumstances
00:16:13.87\00:16:16.34
that things are key.
00:16:16.37\00:16:18.77
And one of the things I
would definitely recommend is,
00:16:18.81\00:16:23.81
why don't we start
playing money games
00:16:23.85\00:16:27.52
instead of some of these other
video games that are out there.
00:16:27.55\00:16:30.25
Lets interact with our
young people across a table
00:16:30.29\00:16:33.96
and discuss specific issues
as they deal with cash flow.
00:16:33.99\00:16:38.73
Number three in this area is,
00:16:41.23\00:16:43.26
teach them about
ways to cut costs.
00:16:43.30\00:16:48.40
Used equipment and
furnitures out their,
00:16:48.44\00:16:50.17
you can buy used equipment.
00:16:50.21\00:16:52.97
As a student go off to school,
00:16:53.01\00:16:55.04
we talk, we can talk
about the dilemma of,
00:16:55.08\00:16:57.78
oh, they're going
to have an emergency
00:16:57.81\00:16:59.41
so lets give them a credit card.
00:16:59.45\00:17:01.52
Yes, that's possible
00:17:01.55\00:17:03.52
but I would probably references
giving them a debit card
00:17:03.55\00:17:06.86
and saying, hey,
00:17:06.89\00:17:08.22
your debit card has this
amount of money to access.
00:17:08.26\00:17:11.56
You need to find a job to
put more money into the account.
00:17:11.59\00:17:14.26
Manage that account properly
00:17:14.30\00:17:16.03
because it's
essential that you understand
00:17:16.06\00:17:18.87
that you need to
save for what you need
00:17:18.90\00:17:23.00
and if you don't save,
you can't just relay on credit
00:17:23.04\00:17:25.57
because that's were
the dangerous signal
00:17:25.61\00:17:27.58
start going off
all over the place.
00:17:27.61\00:17:30.25
There are second hand stores,
00:17:30.28\00:17:32.25
there are donations
from relatives that,
00:17:32.28\00:17:35.08
hey, my nephew is
going off to school,
00:17:35.12\00:17:37.25
he has a need of this.
00:17:37.29\00:17:38.82
I would recommended start
with your students at age 16,
00:17:38.85\00:17:41.96
give them access
to may be a debit card
00:17:41.99\00:17:44.56
or may be credit card,
00:17:44.59\00:17:46.33
but teach them concepts
00:17:46.36\00:17:47.93
and have them put
together a list of things
00:17:47.96\00:17:50.00
that they will need for school
00:17:50.03\00:17:52.53
or for moving out on
their own when they hit 18
00:17:52.57\00:17:55.14
or whatever the case may be.
00:17:55.17\00:17:56.91
Those type of tips are essential
00:17:56.94\00:17:58.91
as they being to learn
00:17:58.94\00:18:01.34
how they can relate to
credit, to managing their funds,
00:18:01.38\00:18:05.75
and finishing
their first apartment.
00:18:05.78\00:18:10.45
The cost of moving
will include the rent.
00:18:10.49\00:18:17.03
Your first and last month
rent is typically the case.
00:18:17.06\00:18:21.36
So in my case it
was about $1,800 dollars
00:18:21.40\00:18:24.07
that I came out of pocket
to get into that apartment.
00:18:24.10\00:18:28.80
There's a cleaning deposit
00:18:28.84\00:18:30.17
that typically
comes up on to your rent.
00:18:30.21\00:18:31.97
Though you have
to put that in there
00:18:32.01\00:18:33.34
because at the end of your lease
00:18:33.38\00:18:34.88
or at the end of
your rental period
00:18:34.91\00:18:37.21
they going to have
to clean the apartment.
00:18:37.25\00:18:38.58
So they
automatically put that in their.
00:18:38.61\00:18:40.52
There is a security deposit.
00:18:40.55\00:18:41.88
What does that mean?
Have you asked that question?
00:18:41.92\00:18:43.59
You read and you ask
what's necessary about
00:18:43.62\00:18:46.82
what goes into that apartment
00:18:46.86\00:18:48.66
and how much it's going to cost.
00:18:48.69\00:18:50.53
There is a telephone deposit,
there are utilities depots.
00:18:50.56\00:18:54.13
All of these
things play a factor,
00:18:54.16\00:18:56.36
and it's key to teach your child
00:18:56.40\00:18:58.57
and/or young adult that
this factor play a part.
00:18:58.60\00:19:02.17
And in most instances it's
essential that you allow them
00:19:02.20\00:19:06.88
the opportunity of
handling it themselves.
00:19:06.91\00:19:10.45
Helicopter parents are
people that hover around
00:19:10.48\00:19:12.71
is the good thing
00:19:12.75\00:19:14.08
because you're
concern about your child,
00:19:14.12\00:19:15.65
but don't let your concern
00:19:15.68\00:19:18.85
cloud the issue of an education
00:19:18.89\00:19:21.42
in how money works
00:19:21.46\00:19:23.16
and what it costs
to live on your own.
00:19:23.19\00:19:27.90
Moving costs, its cost
me 70... it didn't cost me,
00:19:27.93\00:19:31.67
it was $7,200 to
move me over there.
00:19:31.70\00:19:34.54
But when I moved a
short distance from a home
00:19:34.57\00:19:40.91
that I owned
about 25 miles away,
00:19:40.94\00:19:45.18
back to a specific apartment
00:19:45.21\00:19:47.15
that I wanted to
be close to the work,
00:19:47.18\00:19:50.72
the cost of moving with two man
00:19:50.75\00:19:53.05
and a small truck
00:19:53.09\00:19:54.42
and the time involved
was the well over $1,200.
00:19:54.46\00:19:58.46
$1,200 to move me 25
miles into an apartment,
00:19:58.49\00:20:03.23
and it was kind of an intriguing
00:20:03.26\00:20:05.00
when you take a look at
00:20:05.03\00:20:06.37
how much it cost
to hire the movers
00:20:06.40\00:20:08.27
and what it cost
for packing supplies
00:20:08.30\00:20:10.44
and to physically
move you with two people
00:20:10.47\00:20:12.81
from one place to the next.
00:20:12.84\00:20:14.71
I'm constantly trying to think
of the fact of whether or not I
00:20:14.74\00:20:17.08
increase the
number to four people
00:20:17.11\00:20:19.31
if it would decrease the
time substantially enough
00:20:19.35\00:20:22.05
so that I could save
some money on the hourly cost
00:20:22.08\00:20:24.62
to what it cost to move me.
00:20:24.65\00:20:25.99
I didn't study any of that,
I just called them up and said,
00:20:26.02\00:20:28.52
I need to two movers,
00:20:28.56\00:20:29.92
and they came in
and took care of things.
00:20:29.96\00:20:31.59
So I didn't do
a lot of research,
00:20:31.63\00:20:33.90
I didn't do enough to plan,
00:20:33.93\00:20:36.13
I didn't
understand the full context
00:20:36.16\00:20:37.80
of what it costs to move,
00:20:37.83\00:20:39.33
I didn't know the information
necessary about researching.
00:20:39.37\00:20:44.34
First and last month
deposits, what it is to rent,
00:20:44.37\00:20:47.48
what it is to lease,
00:20:47.51\00:20:48.88
and I was left
that the mercy of those
00:20:48.91\00:20:50.75
that I was working with.
00:20:50.78\00:20:52.11
Without the
research I am at odds,
00:20:52.15\00:20:55.38
and then its key to
take a step back and said,
00:20:55.42\00:20:58.15
without having
a budget in place,
00:20:58.19\00:21:00.99
and I am going to continue
the process of hammering
00:21:01.02\00:21:04.53
what it means to budget.
00:21:04.56\00:21:06.43
A budget would have taught me
00:21:06.46\00:21:07.80
that I am not going
beyond this expense.
00:21:07.83\00:21:11.67
I can only afford $800 apartment
00:21:11.70\00:21:13.64
but yet I am paying $950,
00:21:13.67\00:21:16.10
and then again they increased it
00:21:16.14\00:21:18.47
because I rented
and didn't lease,
00:21:18.51\00:21:20.24
obviously,
$1,150 before I actually
00:21:20.28\00:21:22.38
establish a 13
month lease agreement.
00:21:22.41\00:21:25.68
We are right now in
a difficult situation
00:21:25.71\00:21:30.42
in our economy.
00:21:30.45\00:21:31.79
And we know that
job are hard to come by,
00:21:31.82\00:21:34.92
and its now an
education in understanding that
00:21:34.96\00:21:38.83
many to 40 to 44 years
old are having credit problems
00:21:38.86\00:21:41.36
because they were
dealing with the greatness
00:21:41.40\00:21:46.17
of the early years of 2000
00:21:46.20\00:21:48.14
when houses were
going up in value
00:21:48.17\00:21:50.91
and when they were leveraging
00:21:50.94\00:21:54.41
the equity in their homes
to buy and do different things.
00:21:54.44\00:21:58.18
And then, once
the market crashed
00:21:58.21\00:22:00.72
and things happened,
00:22:00.75\00:22:02.35
they found themselves in debt,
00:22:02.38\00:22:04.42
they found that if
they lost their job
00:22:04.45\00:22:06.59
they, it took them
more time to find a new job,
00:22:06.62\00:22:09.96
they couldn't
pay back their debts,
00:22:09.99\00:22:12.69
and they find
themselves taking jobs
00:22:12.73\00:22:15.03
that our young people
would have typically taken.
00:22:15.06\00:22:16.90
And you see 40 to 42 years olds
doing $12 to $14 an hour jobs,
00:22:16.93\00:22:20.87
which is not a bad thing
00:22:20.90\00:22:23.64
but it does tell
you that in this economy
00:22:23.67\00:22:26.41
we have to measure and watch
our money even that much more,
00:22:26.44\00:22:31.51
and watch what
we do with our money
00:22:31.55\00:22:33.58
because that is a
talent that we're given.
00:22:33.62\00:22:36.85
I go to several
comparisons that we can look at.
00:22:36.89\00:22:43.83
But I don't wanna get caught up
00:22:43.86\00:22:47.50
in the specific concerns
00:22:47.53\00:22:51.57
that people have
in reference to jobs
00:22:51.60\00:22:53.34
and finding the new job.
00:22:53.37\00:22:54.84
I am praying
that you find the job
00:22:54.87\00:22:56.67
that's appropriate for you.
00:22:56.71\00:22:58.91
And that I don't
criticize you as an individual
00:22:58.94\00:23:01.94
because you make $10
or $12 or $14 an hour,
00:23:01.98\00:23:06.01
I give you credit
00:23:06.05\00:23:08.32
for going to
work on a daily bases
00:23:08.35\00:23:10.19
and teaching your young
people the ethics of work.
00:23:10.22\00:23:12.92
And if you don't have a job,
00:23:12.95\00:23:14.29
I ask you to go out
there and look for one
00:23:14.32\00:23:16.09
and find what your skills are,
00:23:16.12\00:23:18.56
and do what's
right for your family.
00:23:18.59\00:23:21.86
The context of what
I'm chatting with you is
00:23:21.90\00:23:24.70
if you are working
00:23:24.73\00:23:26.74
and you're
incurring specific expenses,
00:23:26.77\00:23:29.50
you are an example
for your young people.
00:23:29.54\00:23:31.87
Your kids are
watching you as an example
00:23:31.91\00:23:34.74
and they are
gaining specific insides
00:23:34.78\00:23:36.91
about how you manage your money.
00:23:36.95\00:23:40.72
How do you manage your money?
00:23:40.75\00:23:42.98
Do you have a budget?
00:23:43.02\00:23:45.59
Have you taken a
look at what your pay is,
00:23:45.62\00:23:49.49
your payroll, your
pay check that comes in?
00:23:49.52\00:23:51.83
And have you evaluated
00:23:51.86\00:23:53.23
where your
expenses are going out?
00:23:53.26\00:23:55.80
Have you begun the process
of saving for that rainy day?
00:23:55.83\00:23:59.67
Do you know what
that difference is
00:23:59.70\00:24:01.77
between your
revenue and you pay cheque,
00:24:01.80\00:24:05.01
and the expenses,
00:24:05.04\00:24:06.37
those things that
go on a monthly bases?
00:24:06.41\00:24:08.64
Have you put some money aside
to a specific savings account?
00:24:08.68\00:24:13.52
Do you have a checking account?
00:24:13.55\00:24:15.58
Do you take look at
trying to take that money
00:24:15.62\00:24:20.89
that you're saving and
making it work for you?
00:24:20.92\00:24:24.43
Are you investing,
00:24:24.46\00:24:25.79
are planning
long-term for retirement?
00:24:25.83\00:24:29.26
These are all questions
that we need to take a look at
00:24:29.30\00:24:32.10
when we talk
about living on our own.
00:24:32.13\00:24:35.34
So what I like you
to take a chance now
00:24:35.37\00:24:37.44
and do is write down for me,
00:24:37.47\00:24:39.94
write down how much its
gonna cost you as an individual,
00:24:39.97\00:24:43.51
as a student to
move into an apartment.
00:24:43.55\00:24:45.85
Or as an adult
that is in a home,
00:24:45.88\00:24:48.58
write down what your
mortgage or your rent is?
00:24:48.62\00:24:53.05
I ask you to do
that for a purpose
00:24:53.09\00:24:55.26
because when you start writing
down what your expenses are,
00:24:55.29\00:24:58.99
it gives you a perspective
00:24:59.03\00:25:02.00
as to what your
finances are actually about.
00:25:02.03\00:25:07.34
If you are a student,
00:25:07.37\00:25:09.40
take a look at the cost
00:25:09.44\00:25:12.17
of being single in an apartment
00:25:12.21\00:25:15.41
and what it may
cost for a roommate?
00:25:15.44\00:25:18.31
The savings will be substantive
00:25:18.35\00:25:20.12
and make sure you find
the right type of roommate.
00:25:20.15\00:25:23.55
It can be very frustrating
if you sign a 13 months lease
00:25:23.59\00:25:25.75
with somebody
that is not trustworthy
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and is not willing to
keep their end of the bargain.
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Key, make sure you understand
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the pros and cons
of having the roommate,
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take a look at specific costs
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it takes to
furnish an apartment,
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and then make sure
you setup a budget.
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You begun the process now,
you know what your revenue is,
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you know what some
of your expense are.
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Spell them all out, add them up,
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and see whether
or not your expenses
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exceeds your
revenue, you have a problem.
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Or see how much you can
actually cut from your expenses
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to increase the amount
of money that your saving.
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I'd like you to also
take a chance, as a student,
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go out there in
your specific community
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before you actually
move out on your own
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and start evaluating
different properties.
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Take a look at the location,
is location important to you?
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You have access to urban
thing that you like to do?
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Do you like to go on
recreational activities
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where you like to see the zoo
and different things like that.
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Location is a very
important facet of living.
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Two, take a look at
how the building looks,
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the exterior, the interior.
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Is it not well kept?
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It will give you an
idea of what type of landlord
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is holding on to that or
controlling that facility.
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Take a look at the apartment
layouts and the facilities.
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Does it have a gym?
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It is important for
you to stay in shape?
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What are the other issues
involved with living expenses
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and living on your own.
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And then, of course,
finally and most importantly,
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look at the financial
aspects of living in that place.
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Does it cost extra to park?
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Is there an extra cost
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for bringing in
certain amenities?
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What are the part of
the clauses associated
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with renting that
specific facility?
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How far is it from work?
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Will you spend a
little bit more in gas
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and maintenance of a car?
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Is it close to work so
you can just jump on a bus
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and go to work so you can
save the expense in a car?
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Take a look at
all of these elements,
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put it together and
you have your budget.
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And if in fact, you need a car,
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you now know
where you need to start
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to begin budgeting for that car.
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Remember, Take It
To The Bank and save.
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God bless.
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