On Take it to the Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt.
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Solve your credit card problems.
00:00:09.60\00:00:14.74
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
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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 I welcome you
to another program
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on Take it to the Bank,
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and we're
excited that you're here.
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This is a fantastic program
that I don't want you to miss.
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So don't change your channel.
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This is one that I think
will be beneficial for all
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that are involved.
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We've been talking about
the top causes of stress.
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We've asked the questions
to people on the beach,
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people everywhere,
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and they've told
us that they believe
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one of the
common causes of stress,
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one of the top three
are finance of course,
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personal
relationships, and work, work,
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those are the top three,
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and it seems
consistent throughout
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the research we've got,
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as well as the people
we've discussed it with.
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So you have issues such as debt,
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we have retirement
issues, medical expenses,
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we have things
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that also we're
dealing with high gas prices.
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We're paying four
dollars and fifty odd cents
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per gallon of gas in California,
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that's transportation,
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and for those
with long commutes,
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they're dealing with
the additional stress
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of having to pay more
for gas to get to work,
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which is another
stress, the work environment.
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So, lots of good
things to talk about today,
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and what I'd like to do
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is start with a
really great conversation
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I had a chance to have
with Pastor Michael Kelly,
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who is a senior
pastor of the Mount Rubidoux
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Seventh-day Adventist
Church in Southern California,
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in Riverside, California.
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He had a series
called "Life in Debt."
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And I had wonderful chance
to get five minutes of his time
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to talk to him
about the question
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of what is you
consider the highest
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or the biggest stress
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that most people
are dealing with today,
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and how he is dealing with that,
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with his parishioners.
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If you can go to the roll.
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Cordell Thomas,
with Pastor Kelly.
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You're gonna be our expert here
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because you know you did your--
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"Life in Debt" series. Yes.
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And I have a couple
of questions for you,
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but you know what,
what's interesting is
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when most people
are talking about debt,
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we don't realize
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what one trillion
dollars is of debt,
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you know, the county's in
1.33 trillion dollars in debt,
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and what does that mean?
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Right.
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So I started asking
people some questions
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on Venice beach as you...
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if I spend a dollar a second,
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how long would it take
to spend a million dollars?
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You know, my guess would,
you know, I'm thinking maybe...
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for some people
maybe a couple of hours.
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We have to say
that for holidays but...
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Yeah, a million dollars?
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But, you know, I have no idea.
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I've never thought
about something like this.
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People don't conceptualize
those kinds of things.
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Right, right. And
that's what's key.
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We don't understand
what a dollar actually is?
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Right.
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One million dollars
takes 12 days to spend.
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Twelve days.
Spending a dollar a second.
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A second? A dollar a second.
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How about one billion dollars?
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Okay, so if a
million was about 12 days,
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I'd have to say a billion,
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we'll say about 60
days something like that.
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No, you're talking
about 1000 million, right?
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So we're upwards of 32 years.
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Gee!
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Thirty two years you
spend a dollar a second,
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and a trillion.
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The United States' deficit
is 1.33 trillion dollars.
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Can we put it into...
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I really don't
think I could imagine
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'cause I mean the
million threw me off already.
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I mean, what is,
what is a trillion?
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Thirty one thousand years.
Thirty one thousand years.
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That's a trillion,
coming to a trillion
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at a dollar second,
and it's interesting
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because we're dealing
with this issue called debt.
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And the United States'
big debt and then obviously
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we see personal
lives being changed
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all the time
with this debt issue.
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Can you address, "Life in Debt?"
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I know you had a series.
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Can you tell me some
attributes of families
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that may have debt issue?
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Sure, you know,
one of the things
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that God laid on
our heart as a church
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is we were really
concerned with the way
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that the finances of
God's people are going.
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We don't want
to go to the extent
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where people say, you know,
serve God and you get rich.
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We know that's not biblical,
that's prosperity gospel.
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But as you really look
through the scriptures,
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you'll find that Jesus
has a lot to say about money,
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and he doesn't just,
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the scriptures don't only
just talk about money itself,
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but in particular they
really talk about debt.
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The Bible really teaches us
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and really leads God's
children to stay clear of debt.
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Various texts
throughout the Bible,
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in Proverbs they say,
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"The one who is
the borrower is slave,
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you know, to the lender."
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And so one of the
things that we find is
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a lot of our people in
church are enslaved to debt.
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You know, we tease in the series
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we say think about it,
it's called Master Card,
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you know, it's,
it's your master,
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and the thing that we find
is that a lot of the families
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are using these credit
cards, they're, you know,
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getting different types of cards
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whether it be for
department stores,
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maybe just the
regular cards to buy things
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that they really can't afford.
00:05:02.20\00:05:03.53
But this got
interesting you say that
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because the old way
of doing things was,
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save your money go and buy it,
00:05:07.27\00:05:10.01
and that's pretty much it.
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Now, we're dealing
with an issue of immediacy.
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We got to... Absolutely.
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Consumer immediacy.
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Yeah, well it's just neat
thing I talked to somebody,
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you people say, you
ever heard of a lay away,
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and they're like what is that?
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I think you hit on the head.
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The idea of have to having now,
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and I think also especially as,
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you know, I pastor
in Southern California.
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People like to
keep up with technology
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with what's happening.
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If you know, there's a
new TV that's coming out,
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it seems almost
every other month,
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and I don't want to wait,
I have to get it right now.
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And so people in order
to get some type of stuff,
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to get a certain
status are getting in debt
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and what they don't
understand is getting into debt,
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when it comes to
money and financial issues,
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you don't always see
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the immediate
consequences of that.
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I mean, you'll
get in debt today,
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and you won't get to suffer
those consequences for a year,
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two, three years from now,
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and so that's
really what's happening
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to a lot of our people.
00:06:02.22\00:06:03.56
So our series is
trying to teach people,
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"hey, let's use our
money, let's spend our money,
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let's manage our money."
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That's what Jesus talks
a lot about managing money,
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the way that God wants us to.
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And being in debt is definitely
not one of those things
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that God would like to see.
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Okay, I have
something for you, Pastor.
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Okay.
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Let me use this term,
pre-nuptial agreement.
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Okay.
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What is the concept that come
across to you from that word.
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I've been using it
with some of the people
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that have called in about
that, but I say, you know,
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we check out our
partner's past history
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from a medical standpoint,
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we check out so
many different issues,
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but do we check out
their financial past
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and what about
having a agreement,
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not the typical
pre-nuptial issues,
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what are your
concepts about that?
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Yeah, well, you
know some people tease
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and say Kobe Bryant
probably should have,
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you know, got it,
got a lot of girls,
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but I think it's very important.
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In our series we did talk
about the idea of checking up on
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not just what somebody's
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financial past
and histories about,
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but what's their
philosophy on money.
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Do they believe in
just running up credit?
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Do they believe that
a good financial plan
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is paying the minimum
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on all their
credit cards and debt?
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Because that's gonna
have an affect on your future
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and not only your future,
but our children's future,
00:07:08.82\00:07:11.96
and so I think
it's very important.
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I want to see what
kind of spender are you,
00:07:14.06\00:07:15.63
what kind of saver are you.
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What kind of
philosophy do you have
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when it comes to the way
you're gonna manage money,
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because one thing that
00:07:21.27\00:07:22.60
we really drive
home in that series
00:07:22.64\00:07:24.44
is the money is not ours.
00:07:24.47\00:07:26.21
We're stewards of
it, it belongs to God.
00:07:26.24\00:07:28.11
And one day we're gonna
be asked to give an account.
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"What did you do?"
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God's gonna ask us,
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"What did you do with the money
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I entrusted you with?"
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Fantastic.
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Pastor Kelly,
thank you for your time.
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I really
appreciate you being here
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and discussing this with us
00:07:39.69\00:07:41.02
and as we discuss
even this next few weeks
00:07:41.06\00:07:43.59
about credit, about saving,
about doing a variety of things
00:07:43.63\00:07:46.83
that can benefit you,
00:07:46.86\00:07:48.30
I ask you just to
take it to the bank,
00:07:48.33\00:07:51.23
save, spend some time with us,
00:07:51.27\00:07:52.83
and I think you'll
learn something interesting.
00:07:52.87\00:07:54.30
Pastor Kelly, thank so much.
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Thank you so much. Thank you.
00:07:55.70\00:07:58.07
Life in Debt was
an interesting series,
00:08:00.64\00:08:02.24
and it was an
interesting conversation I had,
00:08:02.28\00:08:04.18
it even extended
beyond the actual video.
00:08:04.21\00:08:07.35
It was kind of interesting
00:08:07.38\00:08:08.98
to talk to a
pastor and to talk to,
00:08:09.02\00:08:10.95
and get different perspectives
00:08:10.99\00:08:12.32
of what they have to deal with.
00:08:12.35\00:08:17.23
There are many things
00:08:17.26\00:08:18.59
that we talked
about with Pastor Kelly,
00:08:18.63\00:08:21.46
and we've had a chance to talk
00:08:21.50\00:08:22.83
with many different
organizational leaders
00:08:22.86\00:08:25.73
that take on
financial literacy concerns.
00:08:25.77\00:08:30.61
And one
organization that we talked to
00:08:30.64\00:08:33.68
had to deal with
advising people about credit.
00:08:33.71\00:08:37.81
And one of their board
members is a senior pastor.
00:08:37.85\00:08:40.72
It was quite
interesting in finding out that,
00:08:40.75\00:08:42.98
you know, several
of his parishioners
00:08:43.02\00:08:44.72
during the time that we
had this foreclosure crisis
00:08:44.75\00:08:47.46
between 2006 and
2008 began to disappear.
00:08:47.49\00:08:51.86
Some of them began to disappear.
00:08:51.89\00:08:53.23
Why?
00:08:53.26\00:08:54.60
He had no idea
until he started asking,
00:08:54.63\00:08:56.20
you know, I'm
missing this member,
00:08:56.23\00:08:57.70
why isn't he or she here?
00:08:57.73\00:08:59.50
And what they found out
was some of these parishioners
00:08:59.53\00:09:02.50
were more embarrassed to
talk about financial concerns
00:09:02.54\00:09:05.67
that they had in
reference to foreclosure
00:09:05.71\00:09:07.44
and decided to
just quietly go away,
00:09:07.48\00:09:09.38
relocate and go through
this crisis by themselves.
00:09:09.41\00:09:12.51
Many people consider
this an embarrassment
00:09:12.55\00:09:14.68
and it really isn't.
00:09:14.72\00:09:16.08
The story is told of
a gentleman and his wife
00:09:16.12\00:09:17.95
that saved their money,
he worked in Silicon Valley,
00:09:17.99\00:09:20.19
a stressful type
of job so after...
00:09:20.22\00:09:23.02
They wanted to move to
something more peaceful
00:09:23.06\00:09:24.89
and they took their savings,
00:09:24.93\00:09:26.66
and took their,
took their investments
00:09:26.70\00:09:28.96
and they moved to
a different state,
00:09:29.00\00:09:31.37
and where they
built their dream home.
00:09:31.40\00:09:32.93
Their dream home
was a 2.3 million dollar
00:09:32.97\00:09:35.17
beautiful
facility that was built
00:09:35.20\00:09:38.74
in a community of Colorado.
00:09:38.77\00:09:43.75
It's quite interesting
as they took the time
00:09:43.78\00:09:45.41
two years, two plus
years to build the house,
00:09:45.45\00:09:48.18
and they leveraged
the house that they build
00:09:48.22\00:09:51.49
as collateral to
build a couple of businesses
00:09:51.52\00:09:54.49
in that community to
live a retirement life,
00:09:54.52\00:09:57.53
a lifestyle, live a
little more peaceably,
00:09:57.56\00:09:59.93
and not have to worry about
the stress of everyday life.
00:09:59.96\00:10:03.37
Well, of course
what happened in 2004
00:10:03.40\00:10:05.70
and beyond was, the strife
that we had with the economy,
00:10:05.73\00:10:09.07
and of course
the lack of business
00:10:09.10\00:10:11.14
coming to their new businesses
cost them tremendously,
00:10:11.17\00:10:16.08
and it slowly got to the point
00:10:16.11\00:10:17.45
that they couldn't make
their mortgage payments,
00:10:17.48\00:10:19.35
they tried to modify their loan,
00:10:19.38\00:10:21.28
and the bank
wouldn't work with them,
00:10:21.32\00:10:22.95
the bank
wouldn't work with them,
00:10:22.98\00:10:24.32
and that's quite
interesting to say.
00:10:24.35\00:10:26.12
So they finally stopped paying
to get attention of the bank,
00:10:26.15\00:10:30.13
and went into arrears
of about what 30 months.
00:10:30.16\00:10:34.76
What is a mortgage
payment for $2.2 million home?
00:10:34.80\00:10:39.23
Well, theirs happened
to be $7,000 per month.
00:10:39.27\00:10:42.17
They didn't pay for 30 months
00:10:42.20\00:10:43.54
so they were $210,000
behind on their payments,
00:10:43.57\00:10:47.41
and they're now
looking at foreclosure.
00:10:47.44\00:10:50.68
Something that was not
in their scope of planning.
00:10:50.71\00:10:55.75
And what I want to get
from this story is this,
00:10:55.78\00:10:59.19
that there are many things
that are out of our control.
00:10:59.22\00:11:02.22
There are medical
expenses that can drive
00:11:02.26\00:11:04.49
our expenses way up.
00:11:04.53\00:11:06.16
There are issues that are,
00:11:06.19\00:11:07.53
that we're
dealing with right now
00:11:07.56\00:11:08.90
in reference to
transportation issues
00:11:08.93\00:11:10.37
that can drive our
expenses out of control
00:11:10.40\00:11:12.53
in reference to our budgets.
00:11:12.57\00:11:14.24
And in this
case, they didn't plan
00:11:14.27\00:11:17.07
for a downturn in the economy.
00:11:17.11\00:11:19.94
That was a wealthy family.
00:11:19.97\00:11:21.94
And did you know that
wealthier families or homes
00:11:21.98\00:11:24.91
of $1 million and up and higher
00:11:24.95\00:11:27.72
are likely to go
into foreclosure,
00:11:27.75\00:11:29.82
36,000 of them are going
into foreclosure as we speak.
00:11:29.85\00:11:34.12
There is a home that
was built in Laguna Beach,
00:11:34.16\00:11:37.03
a $28 million
home, beautiful home
00:11:37.06\00:11:41.13
that has never been occupied
00:11:41.16\00:11:43.23
because the initial
buyers couldn't come through
00:11:43.26\00:11:45.80
with the final paper work,
and that home is sitting there
00:11:45.83\00:11:48.90
overlooking Catalina Island.
00:11:48.94\00:11:50.71
And if you look at these places,
00:11:50.74\00:11:52.21
these facilities, these facades
that people are buying into
00:11:52.24\00:11:56.14
and are losing at
a tremendous rate.
00:11:56.18\00:11:58.41
Foreclosures on
those type of homes
00:11:58.45\00:12:00.98
have increased 273
percent since 2006.
00:12:01.02\00:12:05.89
A lot of people are
dealing with crisis,
00:12:05.92\00:12:08.46
not just middle class,
00:12:08.49\00:12:09.82
but the wealthy are
also dealing with it also.
00:12:09.86\00:12:12.43
So let's put a little
cap on things that finances,
00:12:12.46\00:12:15.56
finances that we deal with.
00:12:15.60\00:12:17.40
It's not just
limited to our families,
00:12:17.43\00:12:19.13
it's not just us,
00:12:19.17\00:12:20.64
it's we, everyone deal
with, deals with the crisis,
00:12:20.67\00:12:24.77
and we have to plan
00:12:24.81\00:12:28.14
and plan accordingly
to what we can afford.
00:12:28.18\00:12:32.21
The caveat in the story
is that after the foreclosure
00:12:32.25\00:12:36.42
is taken care of, this
family is planning to move
00:12:36.45\00:12:39.52
to a small rental property
that they can better afford,
00:12:39.55\00:12:42.46
and of course try to
rebuild their credit,
00:12:42.49\00:12:45.99
and rebuild the
lives they had in the past.
00:12:46.03\00:12:50.27
Okay, so where are
we going with this?
00:12:50.30\00:12:53.74
There are couple of issues
00:12:53.77\00:12:55.27
that we should be talking about.
00:12:55.30\00:12:57.57
One has to deal
with the bank, the bank.
00:12:57.61\00:13:01.61
We were just
having a conversation
00:13:01.64\00:13:02.98
about banks in general.
00:13:03.01\00:13:05.38
We have a good relationship
with our bank and banks are...
00:13:05.41\00:13:08.38
There's an
article that just came out
00:13:08.42\00:13:09.92
as a matter of fact about banks,
00:13:09.95\00:13:11.49
and that they are
now looking to make,
00:13:11.52\00:13:13.22
the larger banks
are looking to make
00:13:13.25\00:13:14.82
their banking a profit center.
00:13:14.86\00:13:16.36
The customers that they
have, they're gonna look at them
00:13:16.39\00:13:20.23
more from a
profitably standpoint.
00:13:20.26\00:13:22.03
So they have
come up with a number,
00:13:22.06\00:13:25.73
$100,000 of
assets or investments
00:13:25.77\00:13:28.94
is considered a
successful consumer.
00:13:28.97\00:13:31.67
Those others that
may not be able to carry
00:13:31.71\00:13:33.74
that type of
minimum balance necessary,
00:13:33.78\00:13:36.75
they may start
using additional fees
00:13:36.78\00:13:38.68
to charge these customers.
00:13:38.71\00:13:40.52
I happened to have a
really good relationship
00:13:40.55\00:13:42.72
with my bank, and my bank,
00:13:42.75\00:13:45.39
we have our mortgage with them,
00:13:45.42\00:13:47.12
and we have, I have
my non profit with them,
00:13:47.16\00:13:50.79
and so they have a lot
of our assets with them.
00:13:50.83\00:13:53.70
So we're
considered a premier customer.
00:13:53.73\00:13:55.86
They treat us well,
they give us free services,
00:13:55.90\00:13:58.50
typically that most
people would have to pay for.
00:13:58.53\00:14:01.57
So when you're
looking at a bank,
00:14:01.60\00:14:02.97
there are many
different attributes to a bank
00:14:03.00\00:14:04.77
that you should consider
00:14:04.81\00:14:06.24
when opening up a bank account
00:14:06.27\00:14:07.94
because it could save you
00:14:07.98\00:14:09.64
a lot of money in
the future as you,
00:14:09.68\00:14:12.95
as you continue
that relationship
00:14:12.98\00:14:14.98
and move forward with...
00:14:15.02\00:14:16.82
There're many
different elements of banking
00:14:16.85\00:14:18.79
that we require.
00:14:18.82\00:14:20.52
Okay, but understand one thing.
00:14:20.56\00:14:23.09
Banks are in it
because they are businesses,
00:14:23.12\00:14:26.66
and they are businesses
so they want to make money.
00:14:26.70\00:14:30.13
So those are the basic
concerns you need to look at
00:14:30.17\00:14:33.97
as you begin to
address this issue
00:14:34.00\00:14:38.41
of how do I choose a bank,
what type of bank do I choose.
00:14:38.44\00:14:42.74
And in the future
we'll probably talk
00:14:42.78\00:14:44.55
a little bit more about
some of these online banks,
00:14:44.58\00:14:47.32
and some of the
more virtual banks
00:14:47.35\00:14:48.82
that might be
of interest to you,
00:14:48.85\00:14:50.99
and can save you
something substantively.
00:14:51.02\00:14:54.26
Okay, so, what
we're talking about
00:14:54.29\00:14:56.42
is common financial problems.
00:14:56.46\00:14:59.39
Now we talk
about several of them.
00:14:59.43\00:15:01.46
Let's look at the top six.
00:15:01.50\00:15:04.40
Number one would be debt.
00:15:04.43\00:15:07.60
Debt is number one
as a financial problem,
00:15:07.64\00:15:10.97
that is the number
one financial problem
00:15:11.01\00:15:12.34
people are dealing with,
00:15:12.37\00:15:13.71
and we're gonna talk about that.
00:15:13.74\00:15:15.14
Foreclosure, we just had
a story about foreclosure
00:15:15.18\00:15:17.75
and as you begin to
understand the steps
00:15:17.78\00:15:23.05
that happened in
the foreclosure process,
00:15:23.08\00:15:25.35
it makes you better
aware of how to deal with it.
00:15:25.39\00:15:28.22
College costs,
that's a major issue,
00:15:28.26\00:15:31.43
preparation for college
00:15:31.46\00:15:32.83
and the type of
college you go to.
00:15:32.86\00:15:35.40
Medical costs,
medical emergencies are,
00:15:35.43\00:15:37.87
is the fourth most relevant
or common financial problem.
00:15:37.90\00:15:43.71
Transportation, we're all
dealing with that right now,
00:15:43.74\00:15:46.51
as we're dealing
with the global concern
00:15:46.54\00:15:49.64
of how we get our oil and fuel,
00:15:49.68\00:15:52.15
and then of course the charge
00:15:52.18\00:15:53.52
that we're having
to pay at the pump.
00:15:53.55\00:15:55.82
In California we're paying about
00:15:55.85\00:15:57.19
four dollars and
fifty cents to get our gas.
00:15:57.22\00:16:00.06
And then of course, retirement,
00:16:00.09\00:16:02.42
retirement as a
common financial issue.
00:16:02.46\00:16:05.13
Now, when you're looking at
00:16:05.16\00:16:06.90
these specific financial
issues there are a couple of...
00:16:06.93\00:16:10.90
I'm gonna choose to talk to them
00:16:10.93\00:16:13.40
from a random perspective.
00:16:13.44\00:16:15.10
When you're
looking at retirement,
00:16:15.14\00:16:17.34
people are less apt
00:16:17.37\00:16:19.04
to put money away for retirement
00:16:19.07\00:16:21.21
if they're in debt.
00:16:21.24\00:16:23.18
Most of the money
that they're dealing with,
00:16:23.21\00:16:24.88
they're struggling
with on a monthly basis
00:16:24.91\00:16:26.38
to pay this debt,
to pay the insurance,
00:16:26.41\00:16:28.72
to pay the
mortgage, to pay the rent,
00:16:28.75\00:16:30.62
to pay the expenses that go out
00:16:30.65\00:16:32.95
because they are dealing
with more money going out
00:16:32.99\00:16:36.06
than it's coming in.
00:16:36.09\00:16:37.43
Indebtedness is something
that spirals out of control
00:16:37.46\00:16:40.70
if you're not prepared
to actually deal with it.
00:16:40.73\00:16:42.53
And then of course
interest rates go up
00:16:42.56\00:16:45.83
with those things
that you have on credit
00:16:45.87\00:16:48.50
and all of these things
00:16:48.54\00:16:49.87
cost you more
over the long haul.
00:16:49.90\00:16:51.54
So retirement is
something we have to put aside,
00:16:51.57\00:16:53.58
although it's something that
should be relevant right now.
00:16:53.61\00:16:56.24
So we'll come back
00:16:56.28\00:16:57.61
and talk about
the retirement issue
00:16:57.65\00:17:00.28
because you need, you need that
00:17:00.32\00:17:03.08
buffer between your
income and those expenses
00:17:03.12\00:17:07.39
to put away for
emergency savings,
00:17:07.42\00:17:09.79
and as well put some of
that away to investments
00:17:09.82\00:17:12.79
or long term
for your retirement.
00:17:12.83\00:17:15.60
You can't do it
if you're in debt.
00:17:15.63\00:17:18.27
Okay, let's look at foreclosure.
00:17:18.30\00:17:21.54
Foreclosure happens, what
do you do to deal with it?
00:17:21.57\00:17:24.57
I believe that the
best way to deal with it is,
00:17:24.61\00:17:29.98
is going to talk to an expert
and get as much assistance
00:17:30.01\00:17:32.71
as you possibly can.
00:17:32.75\00:17:34.32
If you are, have your banking
with that bank, talk to them,
00:17:34.35\00:17:38.79
see if you can
work something out,
00:17:38.82\00:17:40.59
find out some of the other
concerns you probably have.
00:17:40.62\00:17:44.03
Now, if you
can't make your payment
00:17:44.06\00:17:47.53
and you're falling
behind in your payments,
00:17:47.56\00:17:49.10
there are other
things that you can do,
00:17:49.13\00:17:50.97
and in the future program
00:17:51.00\00:17:52.33
we'll begin to get
into that in depth.
00:17:52.37\00:17:55.17
Now, there are other
things that can be discussed
00:17:55.20\00:18:00.41
in reference to foreclosure,
00:18:00.44\00:18:01.78
and I really
want to tap into this.
00:18:01.81\00:18:04.08
So we'll choose a program
to talk about the details
00:18:04.11\00:18:06.82
of the foreclosure crisis
00:18:06.85\00:18:08.28
as another wave
is headed our way,
00:18:08.32\00:18:11.42
and it's something that
we should really think about.
00:18:11.45\00:18:13.42
Another type of
financial problem,
00:18:13.46\00:18:16.62
common financial
problem is college cost.
00:18:16.66\00:18:18.49
College students are
going away to school,
00:18:18.53\00:18:20.33
are they prepared
for the costs of school?
00:18:20.36\00:18:23.26
Is Ivy League
School the type of school
00:18:23.30\00:18:27.04
you should be going to?
00:18:27.07\00:18:28.47
Or are community
college is better off?
00:18:28.50\00:18:30.64
Is it the
information you're gaining,
00:18:30.67\00:18:32.81
should you go to school
that costs $50,000 a year,
00:18:32.84\00:18:36.38
and get into debt
from the standpoint
00:18:36.41\00:18:38.21
of student loans or can you go
00:18:38.25\00:18:40.55
to a community
college to start the process
00:18:40.58\00:18:42.55
and find out
exactly what you want to do,
00:18:42.58\00:18:44.52
and spend substantively less.
00:18:44.55\00:18:47.26
Those are
conversations you should have
00:18:47.29\00:18:49.26
with your children,
young people with your parents
00:18:49.29\00:18:51.93
because it has to
do with coming out
00:18:51.96\00:18:55.20
with a quality of life
00:18:55.23\00:18:56.56
and have, not having
that level of indebtedness.
00:18:56.60\00:18:59.20
We're talking about
young people graduating
00:18:59.23\00:19:03.20
under, coming out of
graduates, undergraduate school
00:19:03.24\00:19:05.94
with almost $40,000 with a debt,
00:19:05.97\00:19:08.48
$40,000 to start
that repayment process.
00:19:08.51\00:19:10.61
You have people
coming out of graduate school
00:19:10.65\00:19:12.51
with almost 80 to
$100,000 worth of debt.
00:19:12.55\00:19:15.08
You have medical
students coming out
00:19:15.12\00:19:16.48
of 150, $175,000 worth of debt
00:19:16.52\00:19:19.49
and those type of
things create problems.
00:19:19.52\00:19:22.59
Indebtedness creates
major problems in relationships.
00:19:22.62\00:19:26.70
It creates a lot of
stress in your life,
00:19:26.73\00:19:28.90
and stress can kill you if
you're not careful with it.
00:19:28.93\00:19:32.23
So understanding
that we want to alleviate
00:19:32.27\00:19:35.64
the pressures and
concerns of the problem called
00:19:35.67\00:19:40.48
these common financial problems,
00:19:40.51\00:19:42.34
and college can be one of those,
00:19:42.38\00:19:44.31
because college is not
supposed to put you in debt,
00:19:44.35\00:19:47.32
it's supposed to
create an avenue,
00:19:47.35\00:19:49.48
an avenue for
you to be successful,
00:19:49.52\00:19:51.62
and to do something that God
has led you to do in your life.
00:19:51.65\00:19:55.82
So I would
consider a couple of things.
00:19:55.86\00:19:58.13
One is community
college to start out
00:19:58.16\00:20:00.60
to get an idea of
what you want to do,
00:20:00.63\00:20:02.56
and then begin the process of,
00:20:02.60\00:20:04.43
of deciding on, okay,
I know what I want to do,
00:20:04.47\00:20:07.34
and I need to go to
this type of college
00:20:07.37\00:20:09.00
to get the expertise or
the right type of training,
00:20:09.04\00:20:11.37
and then decide on
where you want to go
00:20:11.41\00:20:12.77
from that standpoint.
00:20:12.81\00:20:14.44
Planning can also...
00:20:14.48\00:20:16.95
And working during the
summer, which is what I did,
00:20:16.98\00:20:20.28
also helps to defray
00:20:20.32\00:20:22.38
a lot of the costs
of going to school.
00:20:22.42\00:20:26.15
Okay, we've
talked about retirement,
00:20:26.19\00:20:29.32
we've talked about college,
00:20:29.36\00:20:31.13
we've talked
about transportation,
00:20:31.16\00:20:33.09
gas prices in your
area, what are they?
00:20:33.13\00:20:36.43
And how much is it impacting you
00:20:36.46\00:20:37.80
at this point in
time or is it significant?
00:20:37.83\00:20:40.00
But we haven't
talked about medical.
00:20:40.04\00:20:41.64
Medical is a major issue
that comes to play as a crisis.
00:20:41.67\00:20:45.27
Many of us don't want
to go to the hospital.
00:20:45.31\00:20:47.51
I know I don't,
00:20:47.54\00:20:49.58
and sometimes it comes
as a form of an experience
00:20:49.61\00:20:53.42
that happens
suddenly on a highway
00:20:53.45\00:20:55.45
where you get in
the car accident,
00:20:55.48\00:20:56.82
in a parking lot
where you have a stroke,
00:20:56.85\00:20:59.29
or your health is
not where it needs to be,
00:20:59.32\00:21:00.96
or you need to lose weight,
you have to see a doctor,
00:21:00.99\00:21:03.09
all of these
things around medical
00:21:03.12\00:21:04.63
can be very stressful.
00:21:04.66\00:21:05.99
And we know that it
is the most relevant cost
00:21:06.03\00:21:09.60
for long term indebtedness,
00:21:09.63\00:21:11.50
when you have
that type of emergency,
00:21:11.53\00:21:13.47
and you don't have the insurance
00:21:13.50\00:21:15.07
to cover the
cost or, or the like.
00:21:15.10\00:21:17.87
So those are the type of things
00:21:17.91\00:21:19.24
you need to start
thinking about in the future
00:21:19.27\00:21:21.78
when you're talking
about an emergency fund.
00:21:21.81\00:21:24.25
Now we talk about
the emergency fund,
00:21:24.28\00:21:26.45
and we talk about
the indebtedness issue,
00:21:26.48\00:21:28.62
and we realize that's
the same as retirement.
00:21:28.65\00:21:31.32
We can't put money away
00:21:31.35\00:21:32.69
'cause we're trying
too much to pay our bills,
00:21:32.72\00:21:35.59
and there in is the major reason
00:21:35.62\00:21:40.23
for planning and
cutting our expenses.
00:21:40.26\00:21:45.10
We talked about
foreclosure, college,
00:21:45.13\00:21:47.47
medical, transportation
and then of course retirement.
00:21:47.50\00:21:50.64
What is the biggest
common financial problem?
00:21:50.67\00:21:54.08
That is debt.
00:21:54.11\00:21:57.81
Debt, and when you look at debt,
00:21:57.85\00:22:02.05
you can also see
the warning sign.
00:22:02.08\00:22:05.32
So if and your spouse,
or you're single individual,
00:22:05.35\00:22:08.16
whatever the case may be,
00:22:08.19\00:22:09.52
take a look at some
of those warning signs.
00:22:09.56\00:22:11.99
One, are you overspending?
00:22:12.03\00:22:14.10
Are you spending
more than you bring in?
00:22:14.13\00:22:16.13
Two, your credit cards
are, are you getting rising
00:22:16.16\00:22:19.83
interest rates on
your credit cards?
00:22:19.87\00:22:21.64
Three, have you
mismanaged your budget?
00:22:21.67\00:22:24.67
Do you even have a budget?
00:22:24.71\00:22:26.41
This, the issue that you
should be thinking about now is,
00:22:26.44\00:22:29.84
I need a budget, I
need to know where I'm at,
00:22:29.88\00:22:32.55
I need to know where I'm going.
00:22:32.58\00:22:33.92
It's a roadmap.
00:22:33.95\00:22:35.28
I believe that the
case is well proven
00:22:35.32\00:22:39.89
when you take a
look at getting in a car
00:22:39.92\00:22:42.52
and knowing what
your destination is.
00:22:42.56\00:22:44.59
I would, you know,
flew into St. Louis
00:22:44.63\00:22:47.36
and I'm driving
up to the studios,
00:22:47.40\00:22:49.13
I knew what my destination was,
00:22:49.16\00:22:51.37
so I knew how to get there.
00:22:51.40\00:22:53.07
The same is the budget.
00:22:53.10\00:22:54.44
My destination for this next
12 months is to save $10,000.
00:22:54.47\00:22:58.87
How am I gonna get
to that $10,000 number.
00:22:58.91\00:23:03.11
It's easy if you have a plan.
00:23:03.14\00:23:06.48
If you make $40,000 a year
00:23:06.51\00:23:09.02
and you're
spending $45,000 a year,
00:23:09.05\00:23:12.75
you're not gonna get there.
00:23:12.79\00:23:14.69
But if you're spending $40,000,
00:23:14.72\00:23:16.26
if you're making $40,000 a year
00:23:16.29\00:23:18.73
and you're able
to cut your expenses
00:23:18.76\00:23:21.16
down to $28,000 a year.
00:23:21.20\00:23:23.87
Now you see
that there are things
00:23:23.90\00:23:25.90
you can do to maybe get
to that number of $10,000
00:23:25.93\00:23:29.87
for that year of savings.
00:23:29.90\00:23:31.64
It's a roadmap.
00:23:31.67\00:23:33.01
You won't know how to get there
00:23:33.04\00:23:34.44
unless you begin to plan.
00:23:34.48\00:23:35.94
Now, increased cost of
living, we're seeing that,
00:23:35.98\00:23:39.18
increased gas
prices, energy costs.
00:23:39.21\00:23:41.55
Looking at unemployment,
00:23:41.58\00:23:42.95
that can take a tremendous
wind out of your sales
00:23:42.98\00:23:46.15
if you lose your job
00:23:46.19\00:23:47.52
so, you know,
try to keep the job
00:23:47.56\00:23:49.69
but understand that there...
00:23:49.72\00:23:51.76
It's vastly important right now
00:23:51.79\00:23:53.70
that you develop a
savings so you can tap into it
00:23:53.73\00:23:56.80
if you need to while
you find the new position.
00:23:56.83\00:23:59.10
Illness or disability,
we talk about medical costs
00:23:59.13\00:24:01.50
and of course
emergencies that come up.
00:24:01.54\00:24:03.67
If you cannot pay your bills,
00:24:03.71\00:24:05.64
you need to
contact your creditors,
00:24:05.67\00:24:07.31
that's the first
step you should do.
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They will work with you.
00:24:08.88\00:24:10.21
They will work with you
if you've lost your job,
00:24:10.25\00:24:12.05
emergency comes up,
00:24:12.08\00:24:13.42
contact them and work with them.
00:24:13.45\00:24:15.88
And then of course
understand the 20-10 rule
00:24:15.92\00:24:19.55
which basically says,
00:24:19.59\00:24:21.26
don't exceed 20
percent of your monthly income
00:24:21.29\00:24:23.83
on spending money
on repayment of debt.
00:24:23.86\00:24:27.70
And then of course the
10 rule basically says,
00:24:27.73\00:24:30.63
don't exceed 10 percent
of your annualize income
00:24:30.67\00:24:33.74
in repayment of debt.
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That's pretty much
what the 20-10 rule means,
00:24:35.44\00:24:37.81
so keep that as a caveat
00:24:37.84\00:24:39.17
and as a mile
marker in understanding
00:24:39.21\00:24:41.51
of how you need to address
00:24:41.54\00:24:43.31
and maintain a
major of your budget.
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Okay, I want you to
remember this ACCSA, A-C-C-S-A,
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what did I say?
00:24:51.49\00:24:53.15
You sound good guys, ACCSA.
00:24:53.19\00:24:55.16
One, it means to
assess your debt,
00:24:55.19\00:24:57.69
A, assess your debt.
00:24:57.73\00:24:59.23
C, to create a budget,
00:24:59.26\00:25:01.66
that is the most
important thing you can do,
00:25:01.70\00:25:03.63
assessing where you're
at from a debt standpoint.
00:25:03.67\00:25:05.93
C, find out and create a budget,
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create that type of budget.
00:25:09.34\00:25:10.67
The next one is
C, cut your spending.
00:25:10.71\00:25:13.71
So the first one is assess debt,
00:25:13.74\00:25:15.84
create a budget,
cut your spending,
00:25:15.88\00:25:18.61
those are the first
three you need to do
00:25:18.65\00:25:20.18
and take a look at.
00:25:20.22\00:25:21.55
Then of course, start saving.
00:25:21.58\00:25:24.15
If you are able to cut
your spending to the time
00:25:24.19\00:25:26.65
where you can now say
that I make more than I spend,
00:25:26.69\00:25:30.59
you're in a good
position to start saving,
00:25:30.63\00:25:32.93
so start saving.
00:25:32.96\00:25:34.86
And the last
one is A, is attack.
00:25:34.90\00:25:39.43
Attack your
debt, attack the debt.
00:25:39.47\00:25:41.80
Go after it with every
type of energy you can.
00:25:41.84\00:25:44.84
Talk to your
spouse, talk to your,
00:25:44.87\00:25:46.47
talk to those
that are in your family
00:25:46.51\00:25:48.24
and say this is
what our objective
00:25:48.28\00:25:50.01
is over the next 12 months.
00:25:50.05\00:25:51.41
We want to get out of debt.
00:25:51.45\00:25:54.05
So again the
acronym ACCSA, A-C-C-S-A,
00:25:54.08\00:25:59.15
basically to asses your,
00:25:59.19\00:26:01.16
where you're at
cut your spending,
00:26:01.19\00:26:03.69
create a budget, of
course, start saving
00:26:03.73\00:26:07.00
and then attack that debt.
00:26:07.03\00:26:09.00
It is fundamentally
important to understand
00:26:09.03\00:26:13.17
that creating a budget,
00:26:13.20\00:26:14.84
understanding
those mile markers,
00:26:14.87\00:26:16.54
and understanding how you
get there will help prevent
00:26:16.57\00:26:19.47
a lot of other
issues in your life.
00:26:19.51\00:26:21.84
It will tell you how
to prepare for retirement.
00:26:21.88\00:26:26.72
You can put
money into an account.
00:26:26.75\00:26:29.35
And then of course,
00:26:29.38\00:26:30.72
you can begin the
process of planning
00:26:30.75\00:26:32.52
for those major emergencies.
00:26:32.55\00:26:34.49
You can begin the
process of allocating
00:26:34.52\00:26:37.16
a little bit of those savings
00:26:37.19\00:26:38.76
back into your
specific checking account
00:26:38.79\00:26:41.70
to pay for the
increased gas prices,
00:26:41.73\00:26:44.27
so it won't cost as much stress
00:26:44.30\00:26:47.84
as it would for
people who are not prepared.
00:26:47.87\00:26:50.27
If you're already
spending more than you make,
00:26:50.31\00:26:52.84
then an increased
amount of gas price,
00:26:52.87\00:26:54.94
I can tell you
what's gonna happen.
00:26:54.98\00:26:56.85
You're gonna go to the
pump, and you're gonna use
00:26:56.88\00:26:58.55
your credit card to
alleviate that debt...
00:26:58.58\00:27:02.18
To create more
of a debt actually,
00:27:02.22\00:27:03.79
but to alleviate the concern
of getting gas in your car,
00:27:03.82\00:27:06.55
so you can get to work.
00:27:06.59\00:27:08.16
That's what
happens, and that's why
00:27:08.19\00:27:09.96
it's so
important to begin to think
00:27:09.99\00:27:12.69
about these common
financial problems,
00:27:12.73\00:27:14.86
and how you can
mitigate or minimize
00:27:14.90\00:27:18.90
the impact on your
life, your family's life.
00:27:18.93\00:27:22.64
The ability to prepare
so you don't have to deal
00:27:22.67\00:27:25.74
with these crises that come up
00:27:25.77\00:27:27.71
on an ongoing basis
such as foreclosures.
00:27:27.74\00:27:31.51
So we're talking about
ACCSA, asses, create a budget,
00:27:31.55\00:27:36.52
cut your spending,
start a savings account,
00:27:36.55\00:27:39.65
and attack your debt.
00:27:39.69\00:27:41.49
These are all things
that can help you prepare
00:27:41.52\00:27:44.49
for these
common financial issues
00:27:44.53\00:27:45.93
that come across
all of our lives,
00:27:45.96\00:27:48.20
and can help you better
prepare for taking your money,
00:27:48.23\00:27:52.27
more of your money to
the bank and saving it.
00:27:52.30\00:27:56.17
God bless you. Take care.
00:27:56.20\00:27:58.61