On Take it to the Bank,
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you'll 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 the budget?
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Simple ways to save.
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Buying or selling a home
and many more financial matters
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on Take it to the Bank.
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Hi, my name is Cordell Thomas,
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and welcome to
Take it to the Bank.
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We're gonna talk about
a couple of things today,
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that will support what
we've talked about previously,
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but in reference to
stress, what causes stress,
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some of the top
issues that are relevant
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surrounding stress
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and how it would
impacts the family.
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We found out that,
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what is the
number one stress causer
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in the United States
around families is finance.
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In fact, the top
three stress source
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that get to families
and break up families
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has to do with
relationships within the family
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and all of those
relationships within the family
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have to do with money.
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So the top one
is financial issues.
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Number one is
stressor is being in debt
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or not being able to pay,
certain things or losing a job,
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those type of issues.
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Second relevant
issue has to do with jobs
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and the work environment.
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There's a lot of stress going on
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in people's work environs,
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and all you need to
do is ask your friends
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and see what's going on.
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What happened in Michigan,
when late '80s, early '90s
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when the automotive industry
went through a major change,
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a lot of individuals
were getting pink slips
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or the layouts were happening
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and people were uncertain
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of what was
going on their lives.
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Now machines are
whole different place,
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because of how
many jobs were related
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to the automotive
industry, very interesting.
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As I lived through it
between 80, 1988 and 1994,
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and I saw the dynamics of people
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and how there was an increase
in violence within families.
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And we saw some
statistics that were relevant
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and supported
some of those issues.
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So finance and debt
can cause a lot of stress
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and now we want to
focus on in this program,
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the relevance of what
causes those financial problems.
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What is the cause underlying
that top stress factor
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of finance.
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As we're gonna talk
through six specific issues.
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Those six issues are:
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The first one would be
poor personal planning.
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We'll go into it a
little bit more depth
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on that one in a minute.
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Well, number two is
unemployment or loss of income.
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Number three would be
expensive emergencies.
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Number four would be
bad financial advice.
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Number five, risky investments.
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I will talk a lot
about that in a minute
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and number six,
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inadequate
planning for retirement.
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Those are the six issues
we're going to talk about.
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Now when we talk
about these causes
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of financial problems,
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a lot of things resonate.
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When we look at
what's going on out there
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and the causes of stress.
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A lot of these causes
of stress we talked about
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could be an irritant, it
could be a variety of things
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but more so it has
to do with finances.
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And you are going to find
that a lot of what we talk about
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is helping to prevent
certain financial issues
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to happen before they do.
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Because I am sure
that you receive calls
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and the mail with
the pitch like saying,
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"We'll protect
you from scammers,
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who would run up huge
debts on your credit cards
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without you knowing.
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Just send us your
credit card numbers
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and we'll take care of you."
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If someone
calls you on the phone
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and asks you for
credit card number,
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there is a problem,
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because most
legitimate business owners
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do not ask for it.
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They may ask for
an identifying number,
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they may ask for
something separate,
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but they do not ask
for credit card numbers
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or any type of
financial or private information
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that you would have.
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You know that's a
warning sign, so you try not to,
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or you try to avoid
those type of problems.
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Now the facts are,
offers of credit protection
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or insurance against fraud
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are attempts to
get your personal data.
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And if someone
calls you out of the blue
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that you don't know,
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that's a warning sign
to stay away from them.
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They are just
after your identity,
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and after your money,
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and after any type of
finance, financial issue
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that they can
get their hands on.
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So watch those type of
things, so let's go through it.
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Number one, we talked about
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had to do with
personal planning.
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Poor budgeting is
one of the reasons
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why many people get
into these financial strains.
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If you are spending
more money than you bring in,
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you are setting yourself up.
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If you are single
and you are doing so,
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it's a simple
issue of figuring out
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where your money is coming from
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and figuring out
where your money is going.
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Those are the major
items to think about.
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A budget that solve that issue
because you have your income,
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your paycheck, your expenses,
your rent, the car now,
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and whatever the case may be.
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Now, as you
look at these issues,
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it can be solved
relatively easily.
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Now, if you are married
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and you are running
to this type of issues,
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you have a
relationship with someone
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and you're spending
more than you bring in,
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that causes a whole
host of other problems.
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That can even
lead down to divorce
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and a variety of other things,
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so when you're
talking about planning.
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If you are married, look
at a prenuptial agreement.
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Whoa, Cordell,
prenuptial agreement,
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we are married,
we are Christians.
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Did you know
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some of the
statistics on divorce?
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When you know,
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then you'll probably
make some substantive change.
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I am going to get
into that later time,
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but did you know that
we're around 30 to 33 percent
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in divorce rates and
that have to do with finances?
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These are significant issues
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and it can cause
break up in relationships
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if we don't address the issue.
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Use of credit cards,
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use of loans to
pay certain debt.
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One of the things
that people used to offset
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short-term concerns
and short-term expenses
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is to use credit
cards to pay that off.
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And you know that
you are in a danger area
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when you are using
credit to pay off certain thing
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that you should be
using your paychecks
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or the income to take care of.
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In most situations
if you're doing that,
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it can tell several
things are at stake.
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It means that you
are not preparing for
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or taking care of
future possible emergencies.
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And we're gonna talk
about expensive emergencies
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in the next couple of steps,
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but in this situation
you are setting yourself up.
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If you're using debt to pay off,
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using credit to pay off debt,
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you're running
into a dangerous area.
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Because once that
interest start piling up,
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it becomes more
difficult to pay off,
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and then the whole
cycle repeats itself.
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And then of course,
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what you must do to
alleviate some of these problems
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is to deal with
a household budget.
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Household budget is key.
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We try to emphasize
this on an ongoing basis.
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If we don't deal with budgets,
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if you don't deal with
knowing where things are
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and knowing how
much money is coming in
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and how much goes
out, and where it goes.
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And if you don't have a
buffer between your expenses
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which should be
lower than your paycheck.
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We hope that's the case.
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If you are upside down
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and you're spending
more than you bring in,
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I would say
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take a serious look at
trying to cut those expenses.
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What type of
expenses you might ask.
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Well,
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if you cannot make
your mortgage payment,
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why don't you cut
back on you cable bill
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or your satellite bill,
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or try to talk to
your cell phone company
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and get rid of your landline,
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and try to cut
out certain things
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that may not be
necessary at this point in time.
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Let's look at
needs versus wants.
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Your need is shelter, clothing.
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Shelter, clothing and food.
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If you have those three
things, you have your needs met.
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So let's try to keep
a roof over your head,
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but then at the same time
00:08:11.69\00:08:13.02
let's take a look
at specific issues
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that drive the stress
that we are talking about,
00:08:15.96\00:08:18.99
this financial stress.
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Cut back on those
expenses you don't need
00:08:20.50\00:08:22.50
and try to look at a
way to invert that bubble
00:08:22.53\00:08:26.97
from being
spending more than you have,
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to spending less
than you bring in.
00:08:29.84\00:08:34.01
Now, the second key
concept that we should look at
00:08:34.04\00:08:36.71
is there is
understanding your paycheck
00:08:36.75\00:08:39.55
where it's coming from,
00:08:39.58\00:08:40.92
and possibly developing
other revenue streams.
00:08:40.95\00:08:45.19
For example I play the
piano, I play the violin.
00:08:45.22\00:08:48.42
And at times people
ask me to help teach
00:08:48.46\00:08:50.99
their young
people an instrument,
00:08:51.03\00:08:53.70
and I picked that up.
00:08:53.73\00:08:55.06
It can pay if you look at
the statistics that are out,
00:08:55.10\00:08:57.53
they can pay between $35
an hour up to $60 an hour.
00:08:57.57\00:09:00.40
That's revenue,
that's extra income,
00:09:00.44\00:09:02.37
that's something that you can do
00:09:02.40\00:09:04.24
to bring more money
and if it's necessary
00:09:04.27\00:09:06.94
and you're currently
not meeting those expenses
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on an ongoing basis.
00:09:09.84\00:09:11.28
So those are things
that you should think about
00:09:11.31\00:09:13.15
concern yourself with.
00:09:13.18\00:09:14.68
And then of course, looking down
00:09:14.72\00:09:16.05
on where your
money goes, expenses.
00:09:16.08\00:09:18.19
This is a simple budget
that we're talking about
00:09:18.22\00:09:19.92
at this point and
it tells you that,
00:09:19.95\00:09:22.26
okay, where is my money going.
00:09:22.29\00:09:25.39
Certain banks
have the ability online
00:09:25.43\00:09:29.33
to actually track your expenses,
00:09:29.36\00:09:32.67
track where your money goes,
00:09:32.70\00:09:34.07
track where your income comes in
00:09:34.10\00:09:35.50
and give you graphics.
00:09:35.54\00:09:37.07
So you got a pie chart
of where your money goes.
00:09:37.11\00:09:39.07
This much goes to rent,
00:09:39.11\00:09:40.44
this much goes to
the mortgage payment,
00:09:40.48\00:09:42.14
this much goes to car payments,
00:09:42.18\00:09:43.51
this much goes to
household improvement,
00:09:43.55\00:09:45.38
this goes to a
variety of different,
00:09:45.41\00:09:47.52
to heat, gas, light,
those type of things,
00:09:47.55\00:09:49.68
and then it gives
you a better ability
00:09:49.72\00:09:51.99
to track what happens,
track where the money goes
00:09:52.02\00:09:55.09
and get a context of
where things are going.
00:09:55.12\00:09:58.19
One of the great things
that are out there right now
00:09:58.23\00:10:00.83
is in reference to cell phones.
00:10:00.86\00:10:03.03
Cell phones and as well iPads,
they provide you these apps
00:10:03.06\00:10:08.40
that you can use to
track your expenses.
00:10:08.44\00:10:10.81
Expensify, mint.com,
00:10:10.84\00:10:12.84
many of these are associated
with helping you get a grab of,
00:10:12.87\00:10:18.91
a grasp of your finances.
00:10:18.95\00:10:21.88
Grab or grasp
whatever you can use
00:10:21.92\00:10:23.85
that makes it
better for you, use it.
00:10:23.89\00:10:27.09
That the context is
00:10:27.12\00:10:28.82
understanding
where your money goes
00:10:28.86\00:10:30.93
is key to bringing
in line your budget.
00:10:30.96\00:10:34.66
And then of course,
00:10:34.70\00:10:36.50
don't spend more
than you bring in.
00:10:36.53\00:10:40.30
That's key and ensuring that
will help you have that buffer,
00:10:40.34\00:10:45.84
additional funds that
you can put into savings
00:10:45.87\00:10:49.04
and prepare for that
unexpected emergency.
00:10:49.08\00:10:53.42
Unemployment and loss
of income is a next step
00:10:53.45\00:10:58.15
to take a look at.
00:10:58.19\00:10:59.52
And it also goes
back to why we budget now?
00:10:59.55\00:11:02.39
Some people are not quite sure
00:11:02.42\00:11:08.26
of if their job
will last a year,
00:11:08.30\00:11:11.13
another 10 years.
00:11:11.17\00:11:12.50
You remember
way back in the day,
00:11:12.53\00:11:13.87
the baby
boomers could go to work
00:11:13.90\00:11:15.47
and work at a job
for 45 years and retire
00:11:15.50\00:11:18.21
and get the golden
watch is no longer the key
00:11:18.24\00:11:20.54
with millennials and
gen-xers coming into play,
00:11:20.58\00:11:23.95
the whole dynamic
of the work environment
00:11:23.98\00:11:26.51
has changed.
00:11:26.55\00:11:27.88
So you no longer
have the capacity to trust
00:11:27.92\00:11:29.88
that you'll be in
one job for 45 years.
00:11:29.92\00:11:32.75
As a matter of fact
as the gen-xers are,
00:11:32.79\00:11:36.52
and I think that's where I'm at,
00:11:36.56\00:11:37.96
that's my generation.
00:11:37.99\00:11:39.73
We are more apt to go through
seven to ten different jobs
00:11:39.76\00:11:42.86
through the
course of our lifetime.
00:11:42.90\00:11:44.23
And as risk takers
based on when we were born,
00:11:44.27\00:11:47.54
we were latchkey
kids and coming home
00:11:47.57\00:11:51.04
because both
parents were out working
00:11:51.07\00:11:53.38
and bringing in revenue.
00:11:53.41\00:11:54.74
So gen-xers by their
profile are more risk takers,
00:11:54.78\00:11:58.61
so you find that my
group and my generation
00:11:58.65\00:12:01.98
would actually go to work
00:12:02.02\00:12:03.75
initially between the
ages of 20 to 35, 20 to 40.
00:12:03.79\00:12:06.96
But during that
timeframe, they're getting ideas
00:12:06.99\00:12:09.12
of how they can
begin their own business
00:12:09.16\00:12:11.16
and develop their own concept
00:12:11.19\00:12:13.80
and they branch
off later off in life
00:12:13.83\00:12:16.13
with a business
concept and a thought process
00:12:16.16\00:12:18.30
of what they can do to
be successful on their own.
00:12:18.33\00:12:21.10
So we find that most people now
and especially with millennials
00:12:21.14\00:12:25.01
now that are coming
into the work environment
00:12:25.04\00:12:27.11
are more apt to be selective
in the jobs that they go into.
00:12:27.14\00:12:31.65
They are more apt to change jobs
00:12:31.68\00:12:34.78
on an ongoing basis
based on their skill
00:12:34.82\00:12:37.35
and their
education, so you no longer
00:12:37.39\00:12:40.76
going to be doing
one job for 45 years.
00:12:40.79\00:12:46.63
Retirement is always key.
00:12:46.66\00:12:48.00
Planning for retirement
00:12:48.03\00:12:49.36
is the other
thing we'll talk about
00:12:49.40\00:12:50.73
is something that most
people are not planning for.
00:12:50.77\00:12:53.57
But we're getting
ahead of ourselves.
00:12:53.60\00:12:54.94
Unemployment and loss of income
00:12:54.97\00:12:57.04
is another
relevant area to discuss.
00:12:57.07\00:12:59.64
A complete loss of
income and cash can destroy
00:12:59.67\00:13:03.24
even the best-laid budgets.
00:13:03.28\00:13:06.35
It's key to
understand, that you lose a job,
00:13:06.38\00:13:11.05
they tell you
many investment gurus
00:13:11.09\00:13:14.52
and financial literacy trainers
will tell you it's important
00:13:14.56\00:13:18.19
to have an emergency savings
of between three to six months.
00:13:18.23\00:13:22.70
Now let me ask you the question.
00:13:22.73\00:13:25.73
How long are most people
unemployed as you took a look
00:13:25.77\00:13:29.70
of the past three to four years?
00:13:29.74\00:13:32.31
I can tell you
and we work with EDD,
00:13:32.34\00:13:34.48
different organizations
that help people find jobs
00:13:34.51\00:13:39.45
and work through
the context of job loss.
00:13:39.48\00:13:43.22
It will tell
you that most people
00:13:43.25\00:13:44.75
are getting
unemployment insurance
00:13:44.79\00:13:47.26
for the course
of up to two years.
00:13:47.29\00:13:50.79
People are unemployed for
even a lot longer than that,
00:13:50.83\00:13:54.16
so if you go through a job loss
with the state of the economy,
00:13:54.20\00:13:58.60
you will probably
be looking for work
00:13:58.63\00:14:02.40
for an extended amount of time.
00:14:02.44\00:14:04.14
And so that three to six
month emergency savings account
00:14:04.17\00:14:07.34
will be burnt out.
00:14:07.38\00:14:09.08
How do you handle
those specific issues
00:14:09.11\00:14:11.18
when you take a look at--
00:14:11.21\00:14:14.68
this long timeframe
where you don't have a job
00:14:14.72\00:14:19.49
and you don't
have income coming in?
00:14:19.52\00:14:22.26
Well, that's a major issue.
00:14:22.29\00:14:23.63
You don't have any
type of income coming in,
00:14:23.66\00:14:25.69
and that's what
causes a lot of stress.
00:14:25.73\00:14:29.63
So what are
some of the resources
00:14:29.66\00:14:32.37
we can go through when
you're dealing with that?
00:14:32.40\00:14:34.04
Well, if you have
a well-laid budget,
00:14:34.07\00:14:36.81
you're putting money away.
00:14:36.84\00:14:38.21
I would suggest that is
not even three to six months
00:14:38.24\00:14:42.08
worth of expenses.
00:14:42.11\00:14:44.88
But you're dealing more so
with three to eight months,
00:14:44.91\00:14:48.85
eight to ten months,
00:14:48.88\00:14:50.22
putting away as
much as you possibly can
00:14:50.25\00:14:53.56
into a savings account
00:14:53.59\00:14:54.92
that you can access if
you necessarily have to.
00:14:54.96\00:14:58.26
You can help to phrase
some of those concerns.
00:14:58.29\00:15:00.46
So if you have three to
six months worth of savings
00:15:00.50\00:15:03.20
or ten months worth of savings,
00:15:03.23\00:15:05.33
you can actually go and
do a part-time job somewhere,
00:15:05.37\00:15:07.97
you can go and do
some other type of work.
00:15:08.00\00:15:10.31
You can teach the piano
if you that type of skill.
00:15:10.34\00:15:13.27
You can do a variety of
things that may not bring in
00:15:13.31\00:15:15.54
as much money as you
would have liked it to,
00:15:15.58\00:15:18.81
but at least it's not
cutting into your expenses,
00:15:18.85\00:15:22.32
cuttings into your
savings as quickly as it would
00:15:22.35\00:15:24.89
if you just don't
have anything coming in.
00:15:24.92\00:15:27.09
So look for
multiple streams of income
00:15:27.12\00:15:30.09
during those times you're down
00:15:30.13\00:15:31.99
and you don't
have the specific job
00:15:32.03\00:15:34.33
you had to go to
on a daily basis.
00:15:34.36\00:15:37.57
You can get the meaning
00:15:37.60\00:15:38.93
because you can talk
to many people as I have
00:15:38.97\00:15:40.74
about job loss,
00:15:40.77\00:15:42.10
and it is very
depressing to hear the comments
00:15:42.14\00:15:44.41
they have to say about
going through that experience.
00:15:44.44\00:15:47.88
I know that I have--
00:15:47.91\00:15:50.55
went through back about
ten to twelve years ago,
00:15:50.58\00:15:54.22
the company that I was
working with consolidated.
00:15:54.25\00:15:57.39
And so the job
positioning that I had,
00:15:57.42\00:15:59.52
the position that was labeled
00:15:59.55\00:16:00.96
as a strategic
marketing manager went away,
00:16:00.99\00:16:03.59
and so they no
longer needed one,
00:16:03.63\00:16:05.06
and so you were out and I
had a great severance package
00:16:05.09\00:16:08.20
and I took that severance
package and I traveled.
00:16:08.23\00:16:11.33
So many
different things you can do
00:16:11.37\00:16:13.34
as you go through the job loss
00:16:13.37\00:16:14.70
because many
companies provide you
00:16:14.74\00:16:17.24
a large sum of
money if they have that to
00:16:17.27\00:16:21.21
as a severance
package or a pay out
00:16:21.24\00:16:23.71
as you leave the job.
00:16:23.75\00:16:26.15
Now, what I will tell
you in all of these is
00:16:26.18\00:16:29.82
don't do what I did,
because back in that day
00:16:29.85\00:16:33.36
I took that severance
package which is substantive
00:16:33.39\00:16:35.76
and I traveled Europe.
00:16:35.79\00:16:37.19
Do I regret it?
00:16:37.23\00:16:38.56
No, because I enjoyed myself,
I was single at the time.
00:16:38.59\00:16:41.43
I didn't have
major over expenses
00:16:41.46\00:16:43.67
and I didn't own a home.
00:16:43.70\00:16:45.03
So I didn't have those
specific problems to deal with
00:16:45.07\00:16:48.80
at that time.
00:16:48.84\00:16:50.17
And I enjoyed the trip.
00:16:50.21\00:16:51.54
I saw places that
I've never imagined
00:16:51.57\00:16:54.44
and experienced something
that I will never regret.
00:16:54.48\00:16:57.11
But I do regret this
that a portion of that money
00:16:57.15\00:17:00.25
that I got as a
severance to that job
00:17:00.28\00:17:03.85
should have been put away
into some type of retirement
00:17:03.89\00:17:07.72
or some type of investment,
because using up that money
00:17:07.76\00:17:12.09
at that time was fun,
00:17:12.13\00:17:14.33
but I look back
and that was a time
00:17:14.36\00:17:16.23
that I could really dug
into a retirement account
00:17:16.26\00:17:20.34
that could have paid many
dividends for me later on.
00:17:20.37\00:17:24.37
But that's just my advice, okay.
00:17:24.41\00:17:26.51
Unemployment and loss of income,
00:17:26.54\00:17:27.94
there are many
things that we can do.
00:17:27.98\00:17:30.08
There are things I
would suggest you do,
00:17:30.11\00:17:31.98
and I would ask
you to do one thing
00:17:32.01\00:17:34.38
is don't get
depressed, don't let it get you,
00:17:34.42\00:17:36.18
don't let the stress get to you.
00:17:36.22\00:17:38.12
Take an active role
in finding something else
00:17:38.15\00:17:41.26
that can bring in
additional revenue,
00:17:41.29\00:17:43.43
additional
paycheck, additional moneys
00:17:43.46\00:17:45.39
that can support
00:17:45.43\00:17:46.76
as you are using up
that emergency savings,
00:17:46.80\00:17:50.63
and with God's help you
will find something soon
00:17:50.67\00:17:55.17
to help support
you and your family
00:17:55.20\00:17:58.91
get through the crisis
that you're dealing with.
00:17:58.94\00:18:01.34
Number three would have to
do with expensive emergencies.
00:18:01.38\00:18:05.65
Even the
greatest financial planner
00:18:05.68\00:18:07.92
deals with
expensive emergencies.
00:18:07.95\00:18:11.25
Costly emergencies that have
to deal with medical expenses,
00:18:11.29\00:18:15.42
that have to do
with educational costs.
00:18:15.46\00:18:18.96
I never realized this, but
when I want away to school,
00:18:18.99\00:18:21.96
to college, the
funness of being away from home
00:18:22.00\00:18:26.03
I guess after getting
through the homesickness
00:18:26.07\00:18:27.97
was interesting.
00:18:28.00\00:18:29.34
Because at college
you had these freedoms,
00:18:29.37\00:18:32.44
you had this student ID card
00:18:32.47\00:18:34.48
that you could
utilize at the bookstore.
00:18:34.51\00:18:36.64
So you are buying these jerseys,
00:18:36.68\00:18:38.05
you are buying the books,
00:18:38.08\00:18:39.41
you are buying all of
these types of things,
00:18:39.45\00:18:40.95
and then of course
student financial aid
00:18:40.98\00:18:43.12
is paying for some of it,
00:18:43.15\00:18:44.49
but yes, your
parents are also paying
00:18:44.52\00:18:46.49
for a substantive
part of your education.
00:18:46.52\00:18:49.12
And at that time as a student,
00:18:49.16\00:18:50.53
you really don't
understand the full context
00:18:50.56\00:18:53.56
of what you're dealing with it.
00:18:53.60\00:18:54.93
I tell you the
story about my son.
00:18:54.96\00:18:56.50
And when he
bought his first bike
00:18:56.53\00:18:58.17
and I go back on that, or
when I bought my first car,
00:18:58.20\00:19:02.07
there is a certain
sense of obligation
00:19:02.10\00:19:05.17
when you have to
save for something,
00:19:05.21\00:19:07.48
and you have to pay for it.
00:19:07.51\00:19:09.34
You take care
of it a lot better.
00:19:09.38\00:19:11.85
When you are not
paying for something
00:19:11.88\00:19:13.21
and you deal with student loan
00:19:13.25\00:19:14.58
there's a certain
type of psychology
00:19:14.62\00:19:17.22
that comes to
play that, you know,
00:19:17.25\00:19:19.35
I didn't use my
own money for it,
00:19:19.39\00:19:20.96
therefore it's not really mine
00:19:20.99\00:19:22.92
and I don't treat it
with the same type of care
00:19:22.96\00:19:25.39
that I treat something
00:19:25.43\00:19:26.76
that I spent the
sweat and handwork doing.
00:19:26.80\00:19:31.40
Now
00:19:31.43\00:19:32.93
what I would tell you is this.
00:19:32.97\00:19:36.44
The key to understanding
00:19:36.47\00:19:38.67
how to deal with
all of these expenses
00:19:38.71\00:19:41.01
is making your children,
00:19:41.04\00:19:43.51
your young people a
part of everything you do.
00:19:43.55\00:19:46.75
Education is key
because a lot of these concerns
00:19:46.78\00:19:51.39
such as medical emergencies.
00:19:51.42\00:19:53.32
If you tell them the
importance of wearing a helmet
00:19:53.36\00:19:56.96
when they are riding their bike,
00:19:56.99\00:19:58.33
and we iterate the
importance of their part
00:19:58.36\00:20:01.56
in the full finance of the home,
00:20:01.60\00:20:03.70
tends to provide
them an awareness factor
00:20:03.73\00:20:06.13
that this is not really
just this game that we play,
00:20:06.17\00:20:09.67
that I don't
have any obligations
00:20:09.70\00:20:12.81
because we all do
00:20:12.84\00:20:14.18
when it comes
to the family unit.
00:20:14.21\00:20:15.94
Medical emergencies come up
and they can wipe people out.
00:20:15.98\00:20:19.01
Medical emergencies
have put many people in debt
00:20:19.05\00:20:22.95
for years and years and years.
00:20:22.98\00:20:24.65
And many can't
even dig out of it
00:20:24.69\00:20:26.49
because there was
inadequate planning,
00:20:26.52\00:20:28.29
and even when you plan for it,
00:20:28.32\00:20:30.16
it takes a
substantive chunk of money
00:20:30.19\00:20:32.43
out of your revenue
stream for a long time.
00:20:32.46\00:20:36.36
Medical problems
even cause concerns.
00:20:36.40\00:20:40.64
If you forget to make a
payment on a medical concern
00:20:40.67\00:20:43.74
that you are
charged that you got
00:20:43.77\00:20:45.84
when you went to urgent care.
00:20:45.87\00:20:49.34
That missed payment
will hurt you tremendously
00:20:49.38\00:20:51.91
from the standpoint of credit
because those medical agencies
00:20:51.95\00:20:56.32
take all of your
payments and your non-payments
00:20:56.35\00:20:59.09
and report them
into your credit history.
00:20:59.12\00:21:01.46
These are major
things to be aware of
00:21:01.49\00:21:03.73
and to prepare for as
much as we possibly can.
00:21:03.76\00:21:07.16
So we have the major ones
00:21:07.20\00:21:08.53
I was talking
about is home expenses.
00:21:08.56\00:21:12.33
A water heater, it
will come up believe me
00:21:12.37\00:21:15.10
because we really don't
own that water, we don't know
00:21:15.14\00:21:17.47
when that water
heater is gonna break down
00:21:17.51\00:21:19.11
as I found out.
00:21:19.14\00:21:20.88
And then I went
into buy the water heater
00:21:20.91\00:21:22.71
and found out that
someone else had the same type
00:21:22.74\00:21:24.61
that lasted 22 years
00:21:24.65\00:21:26.18
and mine only lasted seven
which is an irritant for me,
00:21:26.21\00:21:30.92
and I'm gonna put
it aside right now,
00:21:30.95\00:21:33.15
and we'll
continue our conversation
00:21:33.19\00:21:34.72
on the things that matter.
00:21:34.76\00:21:36.09
But I'll bring it up again,
00:21:36.12\00:21:37.46
because I think it's
really important to realize
00:21:37.49\00:21:38.89
that these emergencies
that come up are relevant,
00:21:38.93\00:21:42.03
they're relevant as small
or as large as they can be,
00:21:42.06\00:21:46.27
if your are prepared with
an emergency savings account,
00:21:46.30\00:21:50.21
these expensive
emergencies can be planned for
00:21:50.24\00:21:54.18
and you can take care of them
00:21:54.21\00:21:56.11
without it hurting
your financial status
00:21:56.14\00:22:00.32
within your the
conference of your budget.
00:22:00.35\00:22:02.68
Poor budgeting
will cause concerns
00:22:02.72\00:22:05.39
all the way down the
road from loss of income,
00:22:05.42\00:22:08.62
when you don't have a job
to those medical emergencies
00:22:08.66\00:22:11.66
as well as to financial advice.
00:22:11.69\00:22:14.66
Don't ask a baker for advice
00:22:14.70\00:22:20.07
when you need advice
on building something.
00:22:20.10\00:22:24.87
Don't ask a friend
00:22:24.91\00:22:27.38
who doesn't have any experience
at managing money for advice
00:22:27.41\00:22:32.68
when they really don't have
00:22:32.71\00:22:34.62
what it takes to give
you the qualified advice
00:22:34.65\00:22:37.19
that a financial
planner and someone in that area
00:22:37.22\00:22:40.56
can actually provide
on a qualified basis.
00:22:40.59\00:22:45.39
I will just let that
go because I think that
00:22:45.43\00:22:48.03
we tend to rely on parents,
00:22:48.06\00:22:51.27
we tend to rely
on people we know,
00:22:51.30\00:22:53.07
we tend to rely on ourselves.
00:22:53.10\00:22:55.00
Many of the interviews
that you will see will tell you
00:22:55.04\00:22:58.64
that most people,
00:22:58.67\00:23:00.01
when your are looking at
a crisis who do you go to.
00:23:00.04\00:23:04.31
They will tell
you, I go to myself.
00:23:04.35\00:23:07.55
I try to figure it out.
00:23:07.58\00:23:08.92
I am having a financial crisis.
00:23:08.95\00:23:10.82
Well, when you are
having a financial crisis,
00:23:10.85\00:23:14.16
it means you caused it.
00:23:14.19\00:23:15.99
And then you are
going to ask yourself,
00:23:16.02\00:23:17.89
how do I get out of it,
00:23:17.93\00:23:19.26
or should I ask an expert
how to get out of this crisis.
00:23:19.29\00:23:23.30
It would make more sense
00:23:23.33\00:23:25.00
to ask a baker
to bake your bread
00:23:25.03\00:23:27.40
and not have a
builder bake your bread,
00:23:27.44\00:23:29.70
and that's pretty
much a concise approach
00:23:29.74\00:23:31.97
I would suggest seek
the resources necessary
00:23:32.01\00:23:35.78
to give you the
qualified advice.
00:23:35.81\00:23:37.88
And then we go to
number five, risky investments.
00:23:37.91\00:23:42.25
Risky investments
through either fraud
00:23:42.28\00:23:46.05
or investments that the market
cannot and doesn't insure.
00:23:46.09\00:23:50.43
If you plan a budget
00:23:50.46\00:23:53.53
and right now
you're barely making it,
00:23:53.56\00:23:55.90
and you can save
maybe $200 a month,
00:23:55.93\00:23:58.40
save the $200.
00:23:58.43\00:23:59.93
Save the money and build
your emergency savings account.
00:23:59.97\00:24:04.17
At that point in time,
00:24:04.21\00:24:05.54
it's probably
not the best advice
00:24:05.57\00:24:07.48
to start
investing in the markets,
00:24:07.51\00:24:09.41
because you'll realize
that the market is a market
00:24:09.44\00:24:11.78
and you can lose a lot
if you are not prepared
00:24:11.81\00:24:15.98
for what could happen.
00:24:16.02\00:24:17.99
So the advice I would give is,
00:24:18.02\00:24:20.76
there are a lot
of things going on
00:24:20.79\00:24:23.06
in reference to
investment areas.
00:24:23.09\00:24:25.73
There are a lot of scam
artists that are out there
00:24:25.76\00:24:28.53
that provide their expertise
and what needs to happen
00:24:28.56\00:24:32.27
and what you need to do,
00:24:32.30\00:24:34.17
and I will give you
a couple of examples.
00:24:34.20\00:24:35.87
For example, a call comes in,
00:24:35.90\00:24:38.97
a letter or an
email can come in,
00:24:39.01\00:24:41.54
and a highly placed
official of a foreign government
00:24:41.58\00:24:44.91
request your assistance
00:24:44.95\00:24:46.38
in transferring a
large amount of money,
00:24:46.41\00:24:48.68
if you can help,
you'll earn a huge fee.
00:24:48.72\00:24:52.12
Now,
00:24:52.15\00:24:54.32
if you get something like that,
00:24:54.36\00:24:55.79
I would ask you to
ignore the email or to call
00:24:55.82\00:25:00.86
and report it.
00:25:00.90\00:25:03.37
Get information
that you can from them,
00:25:03.40\00:25:05.53
find out what
they're doing and report it.
00:25:05.57\00:25:09.14
These checks are
almost always counterfeit
00:25:09.17\00:25:11.01
that they provide you.
00:25:11.04\00:25:12.37
You put it into their
account into your account
00:25:12.41\00:25:14.58
and the check looks legitimate,
they can do a lot of things
00:25:14.61\00:25:18.15
to make it look
real and tangible,
00:25:18.18\00:25:20.35
but the check will
bounce a few days later.
00:25:20.38\00:25:22.22
And then of course
your bank will then ask you
00:25:22.25\00:25:24.09
how you intend
to cover the money
00:25:24.12\00:25:25.55
you transferred to the scammers
00:25:25.59\00:25:29.22
and it can take up to 21
days for that check to clear
00:25:29.26\00:25:32.56
and create a major
cause of stress in your life,
00:25:32.59\00:25:37.23
when a lot of money is at stake.
00:25:37.27\00:25:39.70
These are things
00:25:39.73\00:25:41.07
you don't want
to get involved in.
00:25:41.10\00:25:42.44
How about number
two? And I'll pick one.
00:25:42.47\00:25:45.21
We get this all the time, fraud,
00:25:45.24\00:25:48.71
and what you can
do to prevent it.
00:25:48.74\00:25:50.11
And I would suggest
that if you are interested
00:25:50.15\00:25:52.11
in getting some of these samples
00:25:52.15\00:25:53.72
at end of the show,
00:25:53.75\00:25:55.12
will provide
you an email address
00:25:55.15\00:25:58.82
and a website if you
would like to checkout
00:25:58.85\00:26:01.12
some of the same
specific information
00:26:01.16\00:26:03.46
and we can support you with.
00:26:03.49\00:26:04.99
The last one I'll
share with you is this.
00:26:05.03\00:26:08.03
The con job is an
unemployment advertisement
00:26:08.06\00:26:11.70
offers a work at
home opportunity,
00:26:11.73\00:26:14.44
a multilevel marketing plan
00:26:14.47\00:26:17.51
or another way of
becoming your own boss.
00:26:17.54\00:26:22.04
It will increase your income.
00:26:22.08\00:26:23.85
Where all interest gets
it in working for ourselves.
00:26:23.88\00:26:27.02
But there are
things that are out there
00:26:27.05\00:26:28.45
that you should be aware
of when you're looking at
00:26:28.48\00:26:30.45
this work for
yourself type of thing.
00:26:30.49\00:26:32.39
There are lot of
scams that are out there.
00:26:32.42\00:26:34.06
In fact, the facts are this.
00:26:34.09\00:26:36.86
Sending fees for job
guarantees is very risky.
00:26:36.89\00:26:43.23
If someone ask you to pay a fee
00:26:43.26\00:26:44.87
to get something that typically
just free is very risky.
00:26:44.90\00:26:48.67
In many cases,
00:26:48.70\00:26:50.04
scammers advertise all
kinds of job opportunities
00:26:50.07\00:26:53.74
from envelop
stuffing to a craft assembly
00:26:53.78\00:26:58.55
to a variety of all of these,
a variety of different jobs.
00:26:58.58\00:27:02.15
And in most
instances the ad makes promises
00:27:02.18\00:27:04.65
that they cannot keep.
00:27:04.69\00:27:06.72
You lose more money
instead of making more money,
00:27:06.76\00:27:09.22
and there are tips that
we should all be aware of
00:27:09.26\00:27:11.89
when you're looking
at risky investments.
00:27:11.93\00:27:15.60
The last one is to
plan for retirement,
00:27:15.63\00:27:18.40
to save money,
00:27:18.43\00:27:19.77
to get the budget in place
00:27:19.80\00:27:22.30
so that you can have an
adequate amount of money
00:27:22.34\00:27:25.37
you can put away into an account
00:27:25.41\00:27:27.98
of 401k or 403B
an investment account
00:27:28.01\00:27:31.25
that can prepare
you for a retirement
00:27:31.28\00:27:33.88
that you can enjoy.
00:27:33.92\00:27:35.72
Those are the six things
00:27:35.75\00:27:38.15
that cause
financial crisis in your life.
00:27:38.19\00:27:41.79
When you prepare for
these things by starting
00:27:41.82\00:27:45.63
and planning a budget
00:27:45.66\00:27:47.00
and watching the
emails that come in
00:27:47.03\00:27:51.00
and avoiding a
lot of these concerns,
00:27:51.03\00:27:54.04
you are better prepared
00:27:54.07\00:27:55.64
of taking that extra
money to the bank and save.
00:27:55.67\00:27:59.01
God bless you.
00:27:59.04\00:28:00.38