On Take it to the Bank,
00:00:01.36\00:00:02.70
you'll find ways
to get out of debt,
00:00:02.73\00:00:09.47
solve your credit card problems,
00:00:09.50\00:00:14.64
how to make and
stick with the budget,
00:00:14.68\00:00:19.78
simple ways to save,
00:00:19.81\00:00:24.85
buying or selling a home,
00:00:24.89\00:00:26.89
and many more financial
matters on Take it to the Bank.
00:00:26.92\00:00:32.26
Hi, my name is Cordell Thomas
00:00:32.29\00:00:34.16
and I'm so glad
you're here today.
00:00:34.20\00:00:36.56
We're talking
about a variety of things
00:00:36.60\00:00:38.37
that I think will interest you.
00:00:38.40\00:00:40.60
One of the things
that we're talking about
00:00:40.64\00:00:42.84
are the top 10
financial difficulties,
00:00:42.87\00:00:47.24
top reasons for
financial difficulties
00:00:47.28\00:00:49.04
that we all come across.
00:00:49.08\00:00:50.75
And today we're gonna
look at one specific item,
00:00:50.78\00:00:54.05
which is living
beyond your means.
00:00:54.08\00:00:58.55
One of the key things
00:00:58.59\00:01:00.16
that most people
don't think about is,
00:01:00.19\00:01:03.99
one of the major
ways we think about money.
00:01:04.03\00:01:08.96
How do you think about money?
00:01:09.00\00:01:11.10
I was interested today
over the past couple of weeks,
00:01:11.13\00:01:14.30
I think it was on February
28 that I found this article.
00:01:14.34\00:01:17.61
What happy
people know about money?
00:01:17.64\00:01:20.18
What happy
people know about money?
00:01:20.21\00:01:22.34
And if you read the article,
00:01:22.38\00:01:23.71
which I can
actually provide for you,
00:01:23.75\00:01:25.08
if you'd like to
get the information is,
00:01:25.11\00:01:27.52
they don't look
at it in the same way
00:01:27.55\00:01:30.69
most other people do.
00:01:30.72\00:01:32.05
Money is not the
important facet of life.
00:01:32.09\00:01:34.69
It's the
happiness that the money
00:01:34.72\00:01:37.66
or the financial
situation that those people in,
00:01:37.69\00:01:43.16
the security they probably
have with their finances
00:01:43.20\00:01:45.60
that gives them,
00:01:45.63\00:01:46.97
the happiness
of that gives them.
00:01:47.00\00:01:48.34
So they spend their money,
00:01:48.37\00:01:49.70
they allocate their
money for correct expenditures
00:01:49.74\00:01:51.44
that they have,
00:01:51.47\00:01:52.81
but they don't
worry about the money
00:01:52.84\00:01:54.31
and where it comes from.
00:01:54.34\00:01:55.68
Many of these
individuals are not wealthy.
00:01:55.71\00:01:57.65
They indicate
specifically in the article
00:01:57.68\00:01:59.81
that these are not
wealthy individuals.
00:01:59.85\00:02:01.18
If they need more money,
they can go out and make it
00:02:01.22\00:02:02.75
if they need it.
00:02:02.78\00:02:04.12
But they're living
well within their means
00:02:04.15\00:02:05.65
and they are
happy, and they travel,
00:02:05.69\00:02:08.16
and they do what they
need to do with their money
00:02:08.19\00:02:11.26
to make their happiness
00:02:11.29\00:02:12.63
exhibit itself in how they live,
00:02:12.66\00:02:14.33
what they do,
their philanthropy,
00:02:14.36\00:02:16.26
a very interesting read,
which takes me to a verse
00:02:16.30\00:02:20.10
that we should all
get very accustom to,
00:02:20.14\00:02:23.47
it's in Luke 12:15
00:02:23.51\00:02:25.41
and it says, "Hey, take
care and guard against greed.
00:02:25.44\00:02:31.91
Life does not consist
00:02:31.95\00:02:34.25
in the abundance
of one's possessions."
00:02:34.28\00:02:37.25
It doesn't
really make a difference
00:02:37.29\00:02:40.09
how much you have,
00:02:40.12\00:02:41.46
God doesn't look at that,
He looks at your countenance,
00:02:41.49\00:02:44.06
and looks so much how
you are using the talents
00:02:44.09\00:02:47.40
that He's given to you to use.
00:02:47.43\00:02:49.93
And that may be in your
support of philanthropy,
00:02:49.96\00:02:53.00
the support of
nonprofits such as 3ABN,
00:02:53.03\00:02:55.50
and many other organizations
00:02:55.54\00:02:57.07
that are providing a
service to our communities.
00:02:57.11\00:02:59.67
What we do is provide
financial literacy training
00:02:59.71\00:03:03.14
to our youth,
00:03:03.18\00:03:04.51
we provide it to adults,
00:03:04.55\00:03:05.95
and we try to
provide them information,
00:03:05.98\00:03:09.02
useful information
that they can benefit from
00:03:09.05\00:03:12.69
and utilize in an ongoing basis.
00:03:12.72\00:03:16.22
What do happy
people know about money
00:03:16.26\00:03:22.06
that we may not,
that you may not?
00:03:22.10\00:03:25.30
And I think it's something
00:03:25.33\00:03:26.67
that we need to begin
the process of discussing
00:03:26.70\00:03:29.04
as we dialogue about
this issue called money.
00:03:29.07\00:03:32.41
There was another
article that came out
00:03:32.44\00:03:34.14
that I'll remind you of too
00:03:34.18\00:03:35.51
is send it I think
around the same time
00:03:35.54\00:03:40.58
that wealthy people
are more likely to cheat.
00:03:40.62\00:03:47.42
I guess what does that mean?
00:03:47.46\00:03:48.79
I mean, just from a negotiation
they may mislead the truth.
00:03:48.82\00:03:51.69
They might take
candy from a child.
00:03:51.73\00:03:53.56
I mean, these are little things
00:03:53.60\00:03:54.93
that they talked
about in the article.
00:03:54.96\00:03:56.33
So wealth does not make you
00:03:56.36\00:03:58.70
the greatest
person in the world.
00:03:58.73\00:04:00.07
Wealth takes a
certain level of integrity
00:04:00.10\00:04:04.67
and it takes
planning to get to that point.
00:04:04.71\00:04:07.38
But do you have to
be wealthy to be happy?
00:04:07.41\00:04:09.31
Well, based on
the previous article
00:04:09.34\00:04:11.91
wealth is not happiness.
00:04:11.95\00:04:14.32
Happiness is not
focused on money.
00:04:14.35\00:04:17.19
Happiness is
focusing on using the time
00:04:17.22\00:04:19.89
you have to utilize the funds
00:04:19.92\00:04:22.02
that are available to do things,
00:04:22.06\00:04:24.83
to go places,
00:04:24.86\00:04:26.23
to enjoy the life
that you've been given
00:04:26.26\00:04:28.30
and to give back
by sharing with others
00:04:28.33\00:04:31.77
the wonderful benefit
that you have in Christ.
00:04:31.80\00:04:34.90
And another benefit
that people don't think about
00:04:34.94\00:04:37.94
is when you're not worried
about money then you relax
00:04:37.97\00:04:41.58
and then stress
does not become an issue,
00:04:41.61\00:04:43.61
which is what we
are talking about.
00:04:43.65\00:04:46.05
What is the biggest
stress in life today?
00:04:46.08\00:04:49.78
There are about 66 stressors
00:04:49.82\00:04:51.99
that are exhibited from
external factors in life,
00:04:52.02\00:04:55.32
what are they?
00:04:55.36\00:04:56.89
Well, I'm not gonna
give you the full 66,
00:04:56.93\00:04:58.49
but the top three have
everything to do with money.
00:04:58.53\00:05:01.53
Number one is finances,
00:05:01.56\00:05:04.40
the number one
stressor in life is finances
00:05:04.43\00:05:08.20
that's key to understand.
00:05:08.24\00:05:09.57
The number two
is work environment,
00:05:09.60\00:05:12.31
people are
stressing out right and left
00:05:12.34\00:05:14.04
about their work environment
00:05:14.08\00:05:15.48
and they don't know
how to deal with it.
00:05:15.51\00:05:16.85
People are having
problems with being,
00:05:16.88\00:05:20.05
they're focusing on
getting the next promotion,
00:05:20.08\00:05:23.72
they're willing to climb over
everyone to get that promotion,
00:05:23.75\00:05:26.19
they're willing to
lie, steal, and cheat
00:05:26.22\00:05:31.43
to get to that next level
in their work environment,
00:05:31.46\00:05:35.20
they're willing to
do whatever it takes,
00:05:35.23\00:05:36.80
and it creates a lot of stress.
00:05:36.83\00:05:38.17
Other things that
are associated with work
00:05:38.20\00:05:40.20
is transportation costs
00:05:40.24\00:05:42.00
that are now going
over $4.50 in California.
00:05:42.04\00:05:46.41
People are traveling
long distance in California,
00:05:46.44\00:05:48.64
it's costing them
more to get to work,
00:05:48.68\00:05:50.45
they have to get to
work to pay for those costs,
00:05:50.48\00:05:52.98
and so now they're
focused on the money
00:05:53.01\00:05:54.78
to help take
care of the expenses.
00:05:54.82\00:05:56.58
Remember happiest people in life
00:05:56.62\00:05:59.55
are not focused on
money, they're not.
00:05:59.59\00:06:02.42
The happiest people are know,
00:06:02.46\00:06:05.03
what they know about money
00:06:05.06\00:06:06.46
and how to use money
is key to understanding
00:06:06.49\00:06:09.33
what you can do.
00:06:09.36\00:06:10.70
So that is number two
is the work environment
00:06:10.73\00:06:12.93
and a lot of things associated
with the work environment
00:06:12.97\00:06:15.40
include
transportation, you know,
00:06:15.44\00:06:17.64
getting in the car
making sure you're insured,
00:06:17.67\00:06:19.74
making sure you
get there safely,
00:06:19.77\00:06:21.11
the stress about getting to work
00:06:21.14\00:06:22.48
and getting home at night,
00:06:22.51\00:06:23.85
and those long commutes
00:06:23.88\00:06:25.21
that people have in
the California areas
00:06:25.25\00:06:26.88
as I'm aware of.
00:06:26.92\00:06:28.82
And then, of
course, the third one
00:06:28.85\00:06:30.35
is personal relationships.
00:06:30.39\00:06:32.99
If you don't communicate
in your relationship,
00:06:33.02\00:06:34.89
if you have financial
difficulties in relationship,
00:06:34.92\00:06:36.96
what is the top
cause for divorce?
00:06:36.99\00:06:41.76
Finance.
00:06:41.80\00:06:43.13
Finance is the top cause
00:06:43.16\00:06:44.83
and you can see
it getting involved
00:06:44.87\00:06:48.04
in every different
facet of our lives.
00:06:48.07\00:06:50.37
The top three issues,
00:06:50.41\00:06:51.74
the top three
things that cause stress
00:06:51.77\00:06:53.64
are finance, work environment,
00:06:53.68\00:06:56.88
as well as
personal relationships.
00:06:56.91\00:06:58.41
And if we can figure out a
way to get around all of that
00:06:58.45\00:07:01.72
we'll understand our capacity
00:07:01.75\00:07:04.22
to be in control of
our lives and understand
00:07:04.25\00:07:07.99
how we can be at peace
00:07:08.02\00:07:09.96
and enjoy that life that
we're giving all the more.
00:07:09.99\00:07:14.40
Now what we're
talking about number one,
00:07:14.43\00:07:17.07
will be living beyond your means
00:07:17.10\00:07:19.10
and this will talk through
several different elements
00:07:19.13\00:07:23.41
to include, the ease of access
00:07:23.44\00:07:26.01
that we have to consumer credit,
00:07:26.04\00:07:27.94
it will talk about advertising
00:07:27.98\00:07:29.98
that is hitting us from
all of the perspectives.
00:07:30.01\00:07:32.28
We'll talk about the
lack of financial education
00:07:32.31\00:07:34.72
that most people don't have,
00:07:34.75\00:07:36.35
and distinguishing between
your needs versus your wants.
00:07:36.38\00:07:41.19
This is a very, very
important topic to talk about
00:07:41.22\00:07:47.53
because many people
don't want to address it,
00:07:47.56\00:07:50.70
people don't
want to talk about it,
00:07:50.73\00:07:52.30
and people feel
uncomfortable dealing with it.
00:07:52.33\00:07:55.27
But we will talk about it
00:07:55.30\00:07:56.74
and I ask you to engage with me.
00:07:56.77\00:07:59.87
At the end of the program,
00:07:59.91\00:08:01.24
we will have information
00:08:01.28\00:08:03.31
that we'll provide
you with email address,
00:08:03.35\00:08:05.71
as well as website
that you can go to,
00:08:05.75\00:08:07.68
if you want to provide
feedback or ask questions.
00:08:07.72\00:08:11.05
Write those questions down
as I go through the program
00:08:11.09\00:08:14.26
and send them to me
00:08:14.29\00:08:15.92
because we're always
interested to find out
00:08:15.96\00:08:17.89
what your thoughts
are, what your concerns are,
00:08:17.93\00:08:20.20
and how we can be of benefit
to you in future programs?
00:08:20.23\00:08:23.87
Okay, so we've
gotten that out of the way,
00:08:23.90\00:08:26.94
so let's begin the process
00:08:26.97\00:08:28.57
of talking about
this issue called,
00:08:28.60\00:08:32.01
the first of the top 10 reasons
00:08:32.04\00:08:34.51
why we have
financial difficulties.
00:08:34.54\00:08:36.64
This first one is
living beyond your means,
00:08:36.68\00:08:40.98
living beyond your means.
00:08:41.02\00:08:44.45
There are lots of
things I can tell you
00:08:44.49\00:08:46.62
about living beyond your means,
00:08:46.65\00:08:48.79
but one of the things
that I think are critical
00:08:48.82\00:08:51.39
to understanding
about what it means to live
00:08:51.43\00:08:52.99
beyond the means is the
fact that people overspend.
00:08:53.03\00:08:55.23
It's a simple word overspending.
00:08:55.26\00:08:58.93
We spend more than we have.
00:08:58.97\00:09:00.30
And that has a
lot to do with you
00:09:00.34\00:09:02.54
as a single individual,
00:09:02.57\00:09:04.11
you as married couples,
00:09:04.14\00:09:06.57
you as an individual
that's going towards retirement,
00:09:06.61\00:09:09.81
you as an individual
that have medical costs.
00:09:09.84\00:09:12.68
Now in many
different aspects of our lives
00:09:12.71\00:09:16.08
we think about those emergencies
00:09:16.12\00:09:18.09
that could come up and
make them self available,
00:09:18.12\00:09:20.26
what could those emergencies be?
00:09:20.29\00:09:22.29
Well, we know we're talking
about transportation issues,
00:09:22.32\00:09:24.46
we talked about
that, those are critical
00:09:24.49\00:09:26.86
because we have cost of living
that is going out of the roof.
00:09:26.90\00:09:30.37
We can't, if we're not budgeting
00:09:30.40\00:09:32.63
and
understanding where we're at,
00:09:32.67\00:09:34.00
we are setting
ourselves up to be in those
00:09:34.04\00:09:37.11
in the capacity of overspending,
00:09:37.14\00:09:39.61
and spending money
we're not supposed to.
00:09:39.64\00:09:42.74
What other things
can cause an emergency?
00:09:42.78\00:09:45.21
While a breakdown of a
car, a medical emergency,
00:09:45.25\00:09:49.68
get in a car accident,
00:09:49.72\00:09:51.12
and all of these
things cause stress
00:09:51.15\00:09:52.85
in the work environment,
00:09:52.89\00:09:54.36
and at home you also
have those specific concerns
00:09:54.39\00:09:57.13
when you're looking
at a broken water heater,
00:09:57.16\00:09:59.36
and we need the extra
funds to pay for those things,
00:09:59.39\00:10:02.40
but yet we haven't
just taken a step back
00:10:02.43\00:10:04.90
and look at what
we do with our funds,
00:10:04.93\00:10:08.37
what we do with our money,
00:10:08.40\00:10:10.31
how we track our
money, and understanding
00:10:10.34\00:10:13.51
how we evaluate
where our money comes from
00:10:13.54\00:10:16.28
and where it goes.
00:10:16.31\00:10:17.65
If we have an understanding
of where those things are
00:10:17.68\00:10:20.05
and how these
things impact our lives,
00:10:20.08\00:10:22.95
then we won't know
00:10:22.98\00:10:24.39
where we're going on
the road map of life.
00:10:24.42\00:10:25.99
So if we're planning to
save $5,000 this next year,
00:10:26.02\00:10:30.96
we need to sit down and
plan that roadmap to $5,000.
00:10:30.99\00:10:34.20
And I ask you all to sit down,
00:10:34.23\00:10:36.67
sit down today
00:10:36.70\00:10:38.10
and begin the process
of assessing your debt,
00:10:38.13\00:10:40.94
where are you right now?
00:10:40.97\00:10:42.77
And then, of course,
creating that budget.
00:10:42.80\00:10:45.71
What is a budget?
00:10:45.74\00:10:47.08
A budget is simply your
income subtracting your expenses
00:10:47.11\00:10:53.05
and then you have a
number, that's your budget.
00:10:53.08\00:10:56.28
Basically your
income minus your expenses
00:10:56.32\00:10:59.22
that gives you an
idea of where you're at,
00:10:59.25\00:11:01.12
it starts the
process of developing
00:11:01.16\00:11:03.16
a number of
where you wanna to be,
00:11:03.19\00:11:05.23
your roadmap,
where you wanna go.
00:11:05.26\00:11:08.33
If you are in a
negative situation,
00:11:08.36\00:11:11.27
where your income is
less than your expenses,
00:11:11.30\00:11:15.70
then you have a
concern and you need to start
00:11:15.74\00:11:17.41
looking at how you can take out
those elements of your expenses
00:11:17.44\00:11:21.84
that can help you
bring you back in line.
00:11:21.88\00:11:24.05
For example, do you
really need to have cable TV?
00:11:24.08\00:11:28.55
Do you need to
have satellite TV?
00:11:28.58\00:11:31.15
Can you cut that expense
00:11:31.19\00:11:32.65
and use something a
little less expensive?
00:11:32.69\00:11:34.72
Do you need to spend $135
a month on your cell phone?
00:11:34.76\00:11:38.19
Could you get rid of a landline
00:11:38.23\00:11:39.56
and just go
with your cell phone?
00:11:39.59\00:11:40.93
Can you cut
expenses in specific areas
00:11:40.96\00:11:43.67
that will generate a
little bit more income
00:11:43.70\00:11:46.90
or the stability
that you're not spending
00:11:46.94\00:11:49.40
as much money
on a monthly basis?
00:11:49.44\00:11:52.04
So a budget is critical,
00:11:52.07\00:11:54.34
assessing your debt is critical,
00:11:54.38\00:11:56.95
knowing where
you're at is critical,
00:11:56.98\00:11:59.21
and that means you need
to have that type of budget.
00:11:59.25\00:12:02.22
Now when you get
experienced in doing a budget
00:12:02.25\00:12:05.09
and you get
experienced in figuring out
00:12:05.12\00:12:07.66
where you're at and
tracking your expenses
00:12:07.69\00:12:09.89
and getting your
road map in place
00:12:09.92\00:12:11.69
to saving $5,000
or $10,000 a year
00:12:11.73\00:12:14.40
then you begin to
understand why people
00:12:14.43\00:12:17.67
who are not focused on
money are happy people.
00:12:17.70\00:12:21.20
They're not
worried about the money,
00:12:21.24\00:12:22.70
they're not worried about
what they do with the money,
00:12:22.74\00:12:25.17
they enjoy the
benefits, and the blessings
00:12:25.21\00:12:28.38
that God gives them.
00:12:28.41\00:12:30.11
They're not necessarily wealthy.
00:12:30.15\00:12:32.61
They just utilize their money
00:12:32.65\00:12:35.22
and make sure
they're not spending
00:12:35.25\00:12:36.85
more than they have to spend.
00:12:36.89\00:12:38.22
I know of people.
00:12:38.25\00:12:39.59
I've run into people
for example, an older lady,
00:12:39.62\00:12:43.59
more mature lady who
lives out in the Midwest
00:12:43.63\00:12:46.53
has said that in
her ability to support
00:12:46.56\00:12:49.56
a nonprofit organization,
00:12:49.60\00:12:51.37
she does something that
we don't even think of doing
00:12:51.40\00:12:54.30
during the winter time.
00:12:54.34\00:12:55.67
But she shuts down
different portion of her home
00:12:55.70\00:12:58.21
and to save that
expense on the gas bill
00:12:58.24\00:13:01.68
to heat those portions that
she doesn't necessarily use,
00:13:01.71\00:13:04.78
and she uses that
savings to maintain her support
00:13:04.81\00:13:08.85
of a nonprofit organization.
00:13:08.88\00:13:11.35
It takes that
creative mindset to say,
00:13:11.39\00:13:13.96
"I may not make that
much but what I do make,"
00:13:13.99\00:13:19.29
The Widow's Mite is a
story that comes from the Bible,
00:13:19.33\00:13:21.56
"but what I do make,
00:13:21.60\00:13:22.93
I'll make it useful to
the use of Christ's Work."
00:13:22.96\00:13:27.47
So daring is the first step.
00:13:27.50\00:13:29.60
Take a look at where
you're at and make sure
00:13:29.64\00:13:32.51
that you're in
line with your roadmap
00:13:32.54\00:13:34.78
and your budget
00:13:34.81\00:13:36.14
because your
budget will be different
00:13:36.18\00:13:37.88
than everyone else's.
00:13:37.91\00:13:39.38
But it takes you taking the time
00:13:39.41\00:13:41.25
and looking at where you're
at and where you wanna go.
00:13:41.28\00:13:45.75
There are many things
we're gonna talk about today,
00:13:45.79\00:13:47.76
but I'd like to make
you aware of a couple things
00:13:47.79\00:13:50.19
before we moved forward.
00:13:50.23\00:13:53.53
The number one thing
is, I got this in the mail,
00:13:53.56\00:13:57.23
major cause of heart attacks,
Christmas, avoid Christmas.
00:13:57.27\00:14:01.87
"Oh, we can't do that
Christmas comes every year."
00:14:01.90\00:14:04.24
But the statistic is this,
00:14:04.27\00:14:07.28
more Americans die
from cardiac arrest
00:14:07.31\00:14:10.95
on Christmas Day than on
any other day of the year.
00:14:10.98\00:14:14.72
Doctors have long speculated
00:14:14.75\00:14:16.89
on the cause for this
holiday heart syndrome,
00:14:16.92\00:14:20.19
guess why this occurs?
00:14:20.22\00:14:23.96
They blame it from cold
weather to financial issues,
00:14:23.99\00:14:29.46
family stress.
00:14:29.50\00:14:31.47
What are the top two
reasons for financial stress
00:14:31.50\00:14:34.07
or for stress in general?
00:14:34.10\00:14:36.20
Finances, work, and family.
00:14:36.24\00:14:40.08
That's it.
00:14:40.11\00:14:41.44
This is what the cause.
00:14:41.48\00:14:42.81
And then, of
course, on Christmas Day,
00:14:42.84\00:14:44.58
Christmas Day the
best day of the year
00:14:44.61\00:14:48.02
people are dying
00:14:48.05\00:14:49.38
because they're
stressed out of about
00:14:49.42\00:14:50.75
how I'm gonna repay that debt?
00:14:50.79\00:14:52.25
How I'm gonna take
care of all of these things
00:14:52.29\00:14:54.32
that I'm trying to
make everyone happy with?
00:14:54.36\00:14:56.73
And we end up making people sad
00:14:56.76\00:14:58.29
because this is a crisis
00:14:58.33\00:15:00.46
that most people
don't think about.
00:15:00.50\00:15:03.47
Avoid heart attacks.
00:15:03.50\00:15:05.73
Simply by planning,
planning is the key.
00:15:05.77\00:15:10.54
And so we take a
look at distinguishing
00:15:10.57\00:15:13.34
between your
needs versus your wants.
00:15:13.38\00:15:15.61
What is a need?
00:15:15.64\00:15:18.71
What is a want?
00:15:18.75\00:15:20.22
This is a
simple kind of question
00:15:20.25\00:15:21.58
but it can go into
many different directions
00:15:21.62\00:15:23.62
because many of us think
that we need certain items.
00:15:23.65\00:15:26.29
I remember, I was
saying to my wife way back
00:15:26.32\00:15:29.22
when we were first
married, "I need this."
00:15:29.26\00:15:32.09
And she, you know, of
course, with her psychology
00:15:32.13\00:15:34.06
she is saying things like,
"Do you really need it, honey?
00:15:34.10\00:15:36.56
Is it something that it's
that important to have it?
00:15:36.60\00:15:39.20
And is it really a need
00:15:39.23\00:15:40.57
because do we
need it to survive?
00:15:40.60\00:15:42.54
Think about that."
00:15:42.57\00:15:43.91
Is it something
that you need to survive?
00:15:43.94\00:15:45.74
The things that you
need to survive are shelter,
00:15:45.77\00:15:49.21
food, clothing.
00:15:49.24\00:15:51.88
Shelter, food, and clothing.
00:15:51.91\00:15:54.32
That's it.
00:15:54.35\00:15:55.68
That's really it.
Everything else is a want.
00:15:55.72\00:15:58.12
And we can pretty much
think that a car is a need
00:15:58.15\00:16:00.42
because you need it
to transport yourself
00:16:00.46\00:16:02.82
to do work, the necessary work.
00:16:02.86\00:16:04.46
Yeah, we can begin to talk about
00:16:04.49\00:16:06.29
those other elements of needs,
00:16:06.33\00:16:07.76
but when we look at
a need versus a want,
00:16:07.80\00:16:10.30
take a look at
it if it's something
00:16:10.33\00:16:12.17
that we need to
put on the table,
00:16:12.20\00:16:13.80
keep our roof over our heads,
00:16:13.84\00:16:15.30
and making sure that we
are in a safe environment.
00:16:15.34\00:16:19.11
That's what we do for
our kids and for the family.
00:16:19.14\00:16:21.94
So we make sure
the mortgage is paid,
00:16:21.98\00:16:24.05
we make sure that we
have the clothing in place,
00:16:24.08\00:16:27.35
and you don't necessarily have
to go out and buy new clothing.
00:16:27.38\00:16:30.22
One thing I really
liked about my generation
00:16:30.25\00:16:32.45
is we went through that
phase called the grunge look.
00:16:32.49\00:16:34.92
You know, Gen Xer
was the type that we had,
00:16:34.96\00:16:36.96
we didn't really
care about how we looked,
00:16:36.99\00:16:38.46
you dress in jeans,
00:16:38.49\00:16:39.83
and you dress in T-shirts,
00:16:39.86\00:16:41.20
and you went did
which you had to do.
00:16:41.23\00:16:43.57
The millennials are
somewhat of the same.
00:16:43.60\00:16:45.47
It's not about the look,
it's really about who you are,
00:16:45.50\00:16:48.07
and what you're
trying to accomplish.
00:16:48.10\00:16:49.57
You're not really
focused on the clothing,
00:16:49.60\00:16:52.47
but the clothing is
kind of important also,
00:16:52.51\00:16:54.61
so you make sure you maintain
the needs associated with that.
00:16:54.64\00:16:59.41
Now when you go and
buy clothing ask yourself,
00:16:59.45\00:17:02.58
to ask yourself three questions.
00:17:02.62\00:17:04.32
Is this something I need?
00:17:04.35\00:17:07.46
Is it necessary?
00:17:07.49\00:17:08.89
Or is it something you want?
00:17:08.92\00:17:11.13
Do I need the clothes?
00:17:11.16\00:17:12.66
Or do I already
have five pair of jeans
00:17:12.69\00:17:14.33
at home in my closet
00:17:14.36\00:17:15.80
so I don't really need
it but it's something I want
00:17:15.83\00:17:17.40
because it's a
trend, people are buying,
00:17:17.43\00:17:19.53
and I see all
the friends with it.
00:17:19.57\00:17:20.90
You know, our kids come back
00:17:20.94\00:17:22.27
and talk about
that all the time,
00:17:22.30\00:17:23.64
which is the next year I
wanna go in is advertising.
00:17:23.67\00:17:26.21
But the key is this,
00:17:26.24\00:17:28.21
is it something I really
need or is it something I want?
00:17:28.24\00:17:32.11
Ask yourself
that first question.
00:17:32.15\00:17:34.22
Now if it's a want, can you
afford to pay for it right now?
00:17:34.25\00:17:38.52
Goes to another
issue of credit, immediacy,
00:17:38.55\00:17:41.09
gratification I can go on
00:17:41.12\00:17:42.76
and put it down
on the credit card
00:17:42.79\00:17:44.33
and then I'll pay
the minimum payments
00:17:44.36\00:17:45.69
over the next few
months and pay it off.
00:17:45.73\00:17:48.10
Don't get into that
habit, get away from that habit.
00:17:48.13\00:17:50.37
We should all have a
kumbaya moment together
00:17:50.40\00:17:54.57
where we come together
with all of our credit cards
00:17:54.60\00:17:58.14
and then we cut them up.
00:17:58.17\00:17:59.91
That would be a
wonderful experience
00:17:59.94\00:18:01.44
and if you're
interested in doing that,
00:18:01.48\00:18:02.81
we can all do it together.
00:18:02.84\00:18:04.18
But the issue is to get away
00:18:04.21\00:18:06.82
from that thought process of
I can put it on a credit card
00:18:06.85\00:18:09.98
because I'm ending up
00:18:10.02\00:18:11.95
continuing the process
of paying a company money
00:18:11.99\00:18:16.56
that I don't
necessarily have to,
00:18:16.59\00:18:18.13
if I'm prepared
to pay for it now.
00:18:18.16\00:18:21.96
Have I saved for it?
00:18:22.00\00:18:23.33
Have I planned for it?
00:18:23.37\00:18:24.70
Was it part of my budget?
00:18:24.73\00:18:26.17
Have I assessed this?
00:18:26.20\00:18:27.54
Have I talked to
my spouse about it?
00:18:27.57\00:18:29.30
Is this something
we're prepared to go and get
00:18:29.34\00:18:31.67
at this point in time?
00:18:31.71\00:18:33.11
And the third question is
if you can't afford it now,
00:18:33.14\00:18:37.35
will you be able to save money
to purchase it in the future?
00:18:37.38\00:18:41.95
I always love
that is, all right,
00:18:41.98\00:18:43.72
we don't have the money now
00:18:43.75\00:18:45.09
so we can prepare to buy it
in the future and guess what?
00:18:45.12\00:18:48.46
When we do that and
we walk out of the store
00:18:48.49\00:18:50.39
without purchasing it that day
00:18:50.43\00:18:51.93
because it wasn't
a part of our plan
00:18:51.96\00:18:54.33
it goes away.
00:18:54.36\00:18:55.76
The need to buy goes away.
00:18:55.80\00:18:58.63
I don't even think about
it anymore because remember,
00:18:58.67\00:19:01.24
I had those five pair,
00:19:01.27\00:19:02.60
extra pair of
jeans in the closet
00:19:02.64\00:19:03.97
that I can always
go back to and wear
00:19:04.01\00:19:05.81
if I really need
something at that point in time.
00:19:05.84\00:19:07.88
So it turns out that it really
wasn't a need, it was a want,
00:19:07.91\00:19:11.18
and the want that I came
up with wasn't that urgent
00:19:11.21\00:19:13.98
at that point in time.
00:19:14.02\00:19:15.35
Okay.
00:19:15.38\00:19:16.72
So we're talking
about these simple issues
00:19:16.75\00:19:19.02
but they're complex
00:19:19.05\00:19:20.46
because you're dealing
with, if you're married,
00:19:20.49\00:19:22.36
with a spouse, if you have kids,
00:19:22.39\00:19:24.26
you're dealing with
the kids, and the kids,
00:19:24.29\00:19:26.63
oh, my goodness
think about this.
00:19:26.66\00:19:29.16
Advertising is one of the things
00:19:29.20\00:19:31.23
that we were
talking about in reference
00:19:31.27\00:19:33.30
to living within your means.
00:19:33.34\00:19:36.50
From the moment
your child is born,
00:19:36.54\00:19:39.47
advertising
agencies are going after him.
00:19:39.51\00:19:41.84
I believe it was
Reagan in the early 80s
00:19:41.88\00:19:46.11
that deregulated the
advertising industry.
00:19:46.15\00:19:49.52
So now they could
go after your kids
00:19:49.55\00:19:51.65
in so many different
ways and it is very deep.
00:19:51.69\00:19:54.29
Watch what your
kids are watching
00:19:54.32\00:19:56.06
on the television screen
00:19:56.09\00:19:57.93
because it's all
about advertising to them
00:19:57.96\00:20:02.23
and getting them
to get into the habit
00:20:02.26\00:20:04.77
of becoming consumers,
00:20:04.80\00:20:06.53
becoming a consumer and
that is a critical issue.
00:20:06.57\00:20:10.47
We have to protect
them against the advertisers
00:20:10.51\00:20:13.04
because we are
bombarded on a daily basis,
00:20:13.07\00:20:15.91
you can't avoid advertising,
00:20:15.94\00:20:17.51
if you don't even have a TV,
you can walk out the front door
00:20:17.55\00:20:21.18
and you'll see a billboard,
you can drive different places
00:20:21.22\00:20:24.45
and you see all of
these different ads
00:20:24.49\00:20:27.46
that are available to
get you to buy something.
00:20:27.49\00:20:30.23
If you go into a store,
00:20:30.26\00:20:31.76
they have new
forms of advertising
00:20:31.79\00:20:34.06
that try to get you
to buy certain things.
00:20:34.10\00:20:37.50
I ask you to go to a store
00:20:37.53\00:20:39.17
and when you look
at buying something,
00:20:39.20\00:20:40.90
look up above,
and below that product
00:20:40.94\00:20:44.07
because what
they do strategically
00:20:44.11\00:20:46.41
is put the product
that they want to sell
00:20:46.44\00:20:49.61
or the manufacturer
00:20:49.64\00:20:51.95
who pays the
most for the ad space.
00:20:51.98\00:20:54.28
So you can probably
find something cheaper,
00:20:54.32\00:20:56.65
if you look above or
below that specific product.
00:20:56.69\00:21:00.56
Advertising is there
to change your mindset
00:21:00.59\00:21:03.76
of how and why you
purchase for your kids.
00:21:03.79\00:21:07.70
The other thing is that kids
are coming to you every day.
00:21:07.73\00:21:10.27
I have a child that
will not stop asking,
00:21:10.30\00:21:13.23
"But, Daddy, I want it.
00:21:13.27\00:21:14.60
But, Daddy,
Daddy, can I have it?
00:21:14.64\00:21:15.97
Can I have it, Daddy?"
00:21:16.00\00:21:17.34
It gets to the point
00:21:17.37\00:21:18.71
where they're
teaching your children to ask
00:21:18.74\00:21:22.18
because when you ask
repeated amount of times
00:21:22.21\00:21:25.18
you break down
that wall of resistance
00:21:25.21\00:21:28.52
that the parent has.
00:21:28.55\00:21:29.88
And finally,
out of exasperation,
00:21:29.92\00:21:32.32
"All right, let
me give it to you."
00:21:32.35\00:21:33.82
But let's get it.
00:21:33.86\00:21:36.73
And then you get away
from your whole context of,
00:21:36.76\00:21:40.20
is this
something we planned for?
00:21:40.23\00:21:42.16
Or is it something
that we actually need?
00:21:42.20\00:21:44.83
So now you're teaching your kids
00:21:44.87\00:21:47.80
to behave in a way
00:21:47.84\00:21:49.50
that you're
trying to get away from.
00:21:49.54\00:21:51.21
So it becomes a
very difficult process
00:21:51.24\00:21:55.91
of maintaining
that focus on a budget,
00:21:55.94\00:22:00.28
that focus on a budget.
00:22:00.32\00:22:01.75
So when we talk about
incorporating the whole family
00:22:01.78\00:22:05.15
in this budgetary
process that is essential
00:22:05.19\00:22:08.02
and there's no age limitation.
00:22:08.06\00:22:10.59
My son is seven,
my daughter is five,
00:22:10.63\00:22:12.79
we sit and say we're
going to the store today
00:22:12.83\00:22:17.13
and we're planning
to purchase this item.
00:22:17.17\00:22:21.10
We've budgeted for this
00:22:21.14\00:22:22.50
so that's what
we're going to do.
00:22:22.54\00:22:25.31
Now have you any money saved up?
00:22:25.34\00:22:28.21
What are you planning to
ask when we go to the store?
00:22:28.24\00:22:30.88
Or we just say there's
nothing else over there,
00:22:30.91\00:22:33.52
we're going to the
store for the journey,
00:22:33.55\00:22:35.72
and the experience,
00:22:35.75\00:22:37.09
and make it
exciting for the kids.
00:22:37.12\00:22:38.45
But we try to make sure
00:22:38.49\00:22:39.85
that unless
they've saved for something
00:22:39.89\00:22:41.52
and it's a part of the budget
00:22:41.56\00:22:42.92
and we try to stay
away from these purchases
00:22:42.96\00:22:45.93
that are not necessary.
00:22:45.96\00:22:47.30
Again it goes
to those questions.
00:22:47.33\00:22:49.26
Do I need this?
00:22:49.30\00:22:51.20
Is this something
that I really need?
00:22:51.23\00:22:52.57
Or is it something that I want?
00:22:52.60\00:22:53.97
Ask the child the same question.
00:22:54.00\00:22:56.04
Two, if it's a want can
I afford to get it today?
00:22:56.07\00:22:59.67
Do you have the funds
to buy this item today?
00:22:59.71\00:23:02.28
Ask the child the
question because they know,
00:23:02.31\00:23:05.05
they begin to
understand the context
00:23:05.08\00:23:06.92
of this consumer driven society.
00:23:06.95\00:23:10.42
And then, of course,
if I can't buy it today,
00:23:10.45\00:23:12.92
if you don't have
the money today son,
00:23:12.95\00:23:15.42
then maybe we
should wait to get it.
00:23:15.46\00:23:17.03
And guess what happens?
00:23:17.06\00:23:18.39
The same thing
that happened to me
00:23:18.43\00:23:22.06
in giving up that
option of buying it
00:23:22.10\00:23:24.50
because I didn't
have the funds to buy
00:23:24.53\00:23:26.07
or I didn't really
need it happens to my child,
00:23:26.10\00:23:29.50
he forgets about that item.
00:23:29.54\00:23:33.74
And then what he does
is we leave and go home
00:23:33.78\00:23:36.54
and it's no longer
part of his mindset.
00:23:36.58\00:23:38.78
It seems as if that
when we see something,
00:23:38.81\00:23:42.18
this thing called greed,
00:23:42.22\00:23:44.35
this thing called thinking
about that I need to keep up
00:23:44.39\00:23:47.66
with the Joneses on the
other side of the fence,
00:23:47.69\00:23:49.99
it's not that important.
00:23:50.03\00:23:51.79
And going back to
the initial conversation
00:23:51.83\00:23:53.73
about what happy
people know about money
00:23:53.76\00:23:56.73
is that they're
not focused on money,
00:23:56.77\00:23:58.90
they're not
focused on buying things,
00:23:58.93\00:24:00.60
and acquiring things.
00:24:00.64\00:24:01.97
But they're
focused on using the money
00:24:02.00\00:24:03.61
in an appropriate way
00:24:03.64\00:24:04.97
that keeps them stress free
00:24:05.01\00:24:07.11
and has them providing benefits
to whomever it could be,
00:24:07.14\00:24:10.98
nonprofit
organizations, philanthropy,
00:24:11.01\00:24:13.42
going on mission trips
00:24:13.45\00:24:15.45
all of these elements
are part of how happy people
00:24:15.48\00:24:18.55
now focus on how
they use the money.
00:24:18.59\00:24:21.52
They're not
focused on the money.
00:24:21.56\00:24:27.06
One of the major other issues
00:24:27.10\00:24:28.56
that, and we'll
talk about two more,
00:24:28.60\00:24:30.50
one is the specifics
about access to consumer credit.
00:24:30.53\00:24:34.34
We've talked about this
00:24:34.37\00:24:35.70
and I continue to
repeat it over and over again
00:24:35.74\00:24:37.77
is consumer credit
00:24:37.81\00:24:39.14
is one of the
most dangerous areas
00:24:39.17\00:24:41.48
that we could deal with.
00:24:41.51\00:24:43.28
Right now your
bank is expanding,
00:24:43.31\00:24:46.38
trying to
expand its market share
00:24:46.41\00:24:48.65
by extending credit
to more risky clients.
00:24:48.68\00:24:52.95
And what they're doing
with those future payments
00:24:52.99\00:24:55.36
on those credit cards is
they're bundling those assets
00:24:55.39\00:24:58.59
and they are
selling them to investors.
00:24:58.63\00:25:01.06
So it frees up the
capital for themselves,
00:25:01.10\00:25:02.96
but guess what?
00:25:03.00\00:25:04.33
This freed up capital
is not really a free way
00:25:04.37\00:25:07.10
of giving you credit,
00:25:07.14\00:25:08.84
there are costs
associated with credit.
00:25:08.87\00:25:11.47
So they look at assessing
you in a variety of ways.
00:25:11.51\00:25:14.61
Yes, they still look
at your credit report,
00:25:14.64\00:25:16.31
they'll look at character,
00:25:16.34\00:25:17.68
they still look at if
you have a savings account
00:25:17.71\00:25:19.05
so they look at capital,
00:25:19.08\00:25:20.95
and they still look at
your ability to pay back
00:25:20.98\00:25:24.19
'cause if you don't have a job,
00:25:24.22\00:25:25.55
they probably not gonna
look at you as favorably.
00:25:25.59\00:25:27.26
But if you do have
a job they say, "Yes,
00:25:27.29\00:25:29.02
he has the capacity to
payback on this account."
00:25:29.06\00:25:32.06
Okay, but they are
looking at riskier clients.
00:25:32.09\00:25:35.66
They'll look at
that and give you a card.
00:25:35.70\00:25:39.83
And they give it to you
00:25:39.87\00:25:41.20
saying you are now
having the capacity to buy,
00:25:41.24\00:25:44.27
what you need to buy,
when you need to buy it.
00:25:44.31\00:25:46.41
But they don't tell
you that I am a business
00:25:46.44\00:25:48.94
and this business is
in business to make money.
00:25:48.98\00:25:52.11
So they're gonna make
money off of your acquisitions
00:25:52.15\00:25:54.12
and your purchases.
00:25:54.15\00:25:55.48
I advise that you get
away from credit cards
00:25:55.52\00:25:59.59
and the use thereof.
00:25:59.62\00:26:00.99
And if you can't pay back
the balance within 30 days,
00:26:01.02\00:26:04.36
why are you gonna use it.
00:26:04.39\00:26:05.73
It means it's not
necessarily a need, it's a want,
00:26:05.76\00:26:09.63
and unless I save for that need
00:26:09.66\00:26:11.73
then I won't
respect the acquisition
00:26:11.77\00:26:14.04
that I purchased.
00:26:14.07\00:26:15.40
So I ask you to look
at that in a serious way
00:26:15.44\00:26:18.24
and consider that
credit and the access
00:26:18.27\00:26:21.38
that people are
giving you to credit
00:26:21.41\00:26:23.35
is something you should
think about very carefully
00:26:23.38\00:26:27.18
and be very
hesitant in getting indebt
00:26:27.22\00:26:30.25
from that standpoint.
00:26:30.29\00:26:31.92
The last point
I'd like to talk about
00:26:31.95\00:26:33.72
in reference to
living beyond your means
00:26:33.76\00:26:36.86
is understanding
00:26:36.89\00:26:38.23
what financial
education is about?
00:26:38.26\00:26:40.16
We don't teach it in schools.
00:26:40.20\00:26:42.26
We don't teach as a
part of college courses,
00:26:42.30\00:26:44.83
we don't teach as a part
of elementary school classes.
00:26:44.87\00:26:48.57
We talk to our young people
at home at times about finance
00:26:48.60\00:26:52.64
when we give them
a small allowance,
00:26:52.67\00:26:54.41
but do we teach
them about saving?
00:26:54.44\00:26:56.34
Do we teach
them about investing?
00:26:56.38\00:26:58.41
Do we talk to them
directly about their capacity
00:26:58.45\00:27:01.88
to acquire
specific goods and products?
00:27:01.92\00:27:03.99
But do we also talk to them
00:27:04.02\00:27:06.69
about getting away
from being a consumer
00:27:06.72\00:27:09.46
and think about
becoming a producer.
00:27:09.49\00:27:12.79
Do we think
about teaching our kids
00:27:12.83\00:27:14.40
about owning a business
00:27:14.43\00:27:16.16
and developing a business
idea, a business concept.
00:27:16.20\00:27:19.87
My daughter is planning
to open up her own jumper
00:27:19.90\00:27:25.14
or this pullover
type of business.
00:27:25.17\00:27:28.94
She likes these little things,
the cute little pink things,
00:27:28.98\00:27:32.15
and she has her own, her
own creative design for it.
00:27:32.18\00:27:35.35
What I ask you to do is
teach your kids about finance,
00:27:35.38\00:27:38.82
talk to them about it directly.
00:27:38.85\00:27:40.19
Make it a part of
your ongoing conversation.
00:27:40.22\00:27:42.89
Remember, that there are a
lot of people stressing out
00:27:42.92\00:27:45.36
about what life is about
00:27:45.39\00:27:47.60
and unless we educate ourselves,
00:27:47.63\00:27:50.50
stress will kill us.
00:27:50.53\00:27:54.10
So let's stop living
beyond our means, start saving,
00:27:54.14\00:27:58.47
and Take it to the Bank.
00:27:58.51\00:27:59.87
Thank you. God bless.
00:27:59.91\00:28:01.34