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\00:00:05.93
Solve your credit card problems.
00:00:09.57\00:00:14.61
How to make and
stick with the budget?
00:00:14.64\00:00:16.85
Simple ways to save.
00:00:19.88\00:00:21.48
Buying or selling a home
00:00:24.79\00:00:26.96
and many more financial matters
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on Take it to the Bank.
00:00:29.56\00:00:32.83
Hi, my name is Cordell Thomas
00:00:32.86\00:00:34.20
and welcome to
Take it to the Bank.
00:00:34.23\00:00:37.03
This is a program
that I think will be
00:00:37.07\00:00:38.40
quite interesting for many,
I'm hopeful that it will be.
00:00:38.43\00:00:41.94
We've talked about
I think in the past
00:00:41.97\00:00:43.97
and we'll continue to talk about
00:00:44.01\00:00:45.71
many of the
different opportunities
00:00:45.74\00:00:47.64
you as individuals have
00:00:47.68\00:00:50.11
for bringing in
different streams of income,
00:00:50.15\00:00:54.75
because these are the
times when people are unemployed
00:00:54.78\00:00:58.55
that you have to find
00:00:58.59\00:01:00.22
other means of
bringing in revenue
00:01:00.26\00:01:01.99
and in doing so,
00:01:02.02\00:01:03.79
there are many
other implications
00:01:03.83\00:01:06.19
that we should talk about.
00:01:06.23\00:01:08.43
If you plan to become
a small business owner,
00:01:08.46\00:01:10.60
if you're a sole proprietor,
or you're incorporating,
00:01:10.63\00:01:12.87
or you're doing a
lot of these issues
00:01:12.90\00:01:15.04
on an ongoing basis,
00:01:15.07\00:01:16.74
there are ramifications
in reference to your taxes,
00:01:16.77\00:01:20.98
income taxes,
00:01:21.01\00:01:22.34
do you pay them
on a quarterly basis,
00:01:22.38\00:01:24.85
are you paying salaries,
are you paying workers,
00:01:24.88\00:01:28.38
are you paying subcontractors,
00:01:28.42\00:01:30.19
how does a 1099
work into all of this?
00:01:30.22\00:01:32.72
These are relevant concerns
00:01:32.75\00:01:34.46
and many of us are very
afraid and get very intimidated,
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if we see things like in audit
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and those type of things that
are relevant to our concerns.
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So there are things
that we should be aware of.
00:01:46.27\00:01:49.17
I think it's an
interesting program,
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I hope you will find the same.
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I remember,
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a man is not
considered successful
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by how much he has.
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The Bible says
that in Luke 12:15,
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he says, "Take care
to guard against greed."
00:02:02.22\00:02:04.39
One's life does not consist
00:02:04.42\00:02:08.09
of the abundance
of one's possessions.
00:02:08.12\00:02:10.29
The abundance of
one's possessions.
00:02:10.33\00:02:11.96
We should take care of
how we buy things, what we do,
00:02:11.99\00:02:15.53
understandings our
needs versus our wants.
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It's talking about
knowing where we're at
00:02:17.80\00:02:20.00
from a debt standpoint
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understanding that we
have a budget in place
00:02:21.40\00:02:24.27
knowing what we spend,
knowing what we bring in,
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and understanding what we want
to put away on a monthly basis,
00:02:27.64\00:02:30.98
whether it be working up towards
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a 6, 8, 10 month emergency fund,
00:02:33.52\00:02:36.58
where we put our
retirement savings?
00:02:36.62\00:02:38.52
What we do with our investments?
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Who we go to for advice?
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And it goes back
to the same issue
00:02:43.79\00:02:46.19
of making sure
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we talk to the
appropriate professional
00:02:47.90\00:02:49.86
and just don't rely on
anybody that's out there
00:02:49.90\00:02:53.47
that provides that advice.
00:02:53.50\00:02:55.30
It's essential to find that out
00:02:55.34\00:02:56.71
and I did have a
wonderful opportunity
00:02:56.74\00:02:58.77
to talk to a friend of mine.
00:02:58.81\00:03:00.14
This gentleman
actually creates board games,
00:03:00.18\00:03:02.34
financial board
games, business board games,
00:03:02.38\00:03:04.71
he is a very wise individual
that I really respect a lot,
00:03:04.75\00:03:08.22
and I love the opportunity
to sit down and banter,
00:03:08.25\00:03:10.82
talk back and forth
about things that are going on.
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His name is Mr. Rodney Watson.
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He is a business manager
at the Mount Rubidoux church
00:03:16.19\00:03:19.06
as well as entrepreneur.
00:03:19.09\00:03:22.70
So I would like to
go to this conversation
00:03:22.73\00:03:24.53
I had with him,
It's about ten minutes.
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I think you'll find
it very enlightening
00:03:27.04\00:03:28.84
and it leads
into this conversation
00:03:28.87\00:03:31.07
that we're talking about
00:03:31.11\00:03:32.44
in reference to
top financial problems
00:03:32.47\00:03:35.51
that people have
00:03:35.54\00:03:36.88
and what we can
do to resolve them.
00:03:36.91\00:03:42.05
Hi, y'all. Welcome back.
00:03:42.08\00:03:44.09
Cordell Thomas with
Take it to the Bank series.
00:03:44.12\00:03:46.19
And I just wanted to
chat with you a little bit
00:03:46.22\00:03:47.89
about some of the
things that I've come across
00:03:47.92\00:03:51.26
and answers to
some of these questions
00:03:51.29\00:03:52.66
that I've asked
people on Venice Beach.
00:03:52.69\00:03:54.66
I went to Venice Beach. Yeah.
00:03:54.70\00:03:56.03
It's a tripped out place. Yes.
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And we ask some
people some questions.
00:03:57.43\00:03:58.77
And we ask, one of
the major questions is,
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"Hey, when you have a crisis
in your life, financial crisis,
00:04:00.54\00:04:04.21
who do you go to for advice?"
00:04:04.24\00:04:06.64
Now I'll give you
some of the answers,
00:04:06.68\00:04:08.64
and no, maybe I won't.
00:04:08.68\00:04:10.01
I think, let me ask you.
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When you think of a
typical financial crisis
00:04:11.45\00:04:13.65
or something you need advice on,
00:04:13.68\00:04:15.15
who do you typically or
would you go to for advice?
00:04:15.18\00:04:17.82
I would go to an
expert for advice.
00:04:17.85\00:04:20.66
And there's a book called
"The Richest Man in Babylon",
00:04:20.69\00:04:23.56
and in that book, he says that
you don't go to the brickmaker
00:04:23.59\00:04:26.80
to learn how to make bread."
00:04:26.83\00:04:28.83
So if you have a
financial crisis in your life
00:04:28.86\00:04:31.50
or say, now say it's
not a financial crisis,
00:04:31.53\00:04:34.64
say you have a
financial windfall,
00:04:34.67\00:04:36.94
so you get a
million dollars at one time.
00:04:36.97\00:04:39.81
What do you do, who do
you go to ask for advice?
00:04:39.84\00:04:42.34
One person you should not
go to is your mom or your dad,
00:04:42.38\00:04:46.15
because if they don't
have a million dollars,
00:04:46.18\00:04:48.12
how can they help you.
00:04:48.15\00:04:49.55
There's a saying that we
have in the financial world
00:04:49.58\00:04:51.85
which says, "Never take advice
from someone broker than you."
00:04:51.89\00:04:55.79
So your teacher
and maybe even a pastor
00:04:55.82\00:04:59.39
or someone like that,
00:04:59.43\00:05:00.76
if they have never
managed a million dollars,
00:05:00.80\00:05:03.63
what advice can they give you
00:05:03.67\00:05:05.43
about managing
that type of money.
00:05:05.47\00:05:07.14
You need to go and find someone
00:05:07.17\00:05:09.17
who has a million
dollars or two and say,
00:05:09.20\00:05:11.27
"Hey, what do I do
with this million dollars?"
00:05:11.31\00:05:14.91
Someone who's
got a million dollars
00:05:14.94\00:05:16.28
and has used it successfully...
00:05:16.31\00:05:17.91
Exactly.
00:05:17.95\00:05:19.28
It's interesting because
some of the questions we ask
00:05:19.31\00:05:21.62
is the same,
00:05:21.65\00:05:22.98
where do you go to for advice?
00:05:23.02\00:05:24.35
We asked, I say
about nine different people
00:05:24.39\00:05:26.42
and every single one
of them, bar none said,
00:05:26.45\00:05:30.53
I make the decision
myself or I go to my mom or dad.
00:05:30.56\00:05:35.80
Those are the people they go to,
00:05:35.83\00:05:37.43
never did they say,
00:05:37.47\00:05:39.10
I go to an expert and
it kind of makes sense,
00:05:39.13\00:05:41.54
Yeah. Why
they're in that problem.
00:05:41.57\00:05:43.00
We're having
comments about what,
00:05:43.04\00:05:45.31
several famous football players,
00:05:45.34\00:05:47.01
I won't name any
of them. Exactly.
00:05:47.04\00:05:48.64
The basketball
players that have taken their
00:05:48.68\00:05:50.88
millions of dollars a
windfall and now they are broke.
00:05:50.91\00:05:53.85
Eighty million dollars is gone
and they haven't really used it
00:05:53.88\00:05:57.29
to make it better.
00:05:57.32\00:05:58.65
What advice would you give
00:05:58.69\00:06:00.02
if you did get
a million dollars?
00:06:00.06\00:06:02.12
Well, again I
would go to someone
00:06:02.16\00:06:04.03
who has the money.
00:06:04.06\00:06:05.39
There was a
saying, another saying.
00:06:05.43\00:06:06.76
I love these sayings,
they're rich, it says,
00:06:06.80\00:06:08.86
"Watch what poor
people do and don't do it,
00:06:08.90\00:06:10.97
that's why they're poor."
00:06:11.00\00:06:12.33
Right.
00:06:12.37\00:06:13.70
And we take our mindset
a $30, 000 a year mindset
00:06:13.74\00:06:16.74
and put it into a
million dollar mind,
00:06:16.77\00:06:19.61
it just won't work
00:06:19.64\00:06:21.14
because that 30 million
dollar guy will still think,
00:06:21.18\00:06:24.91
you know, hey, I'm
spending 30 million,
00:06:24.95\00:06:27.78
I'm not earning 30 million
so I must spend 30 million,
00:06:27.82\00:06:30.29
did I say million?
00:06:30.32\00:06:31.65
Thirty thousand.
I mean, thousand.
00:06:31.69\00:06:33.02
Now but that's okay.
00:06:33.05\00:06:34.39
But let me throw
some back at you.
00:06:34.42\00:06:35.76
Okay.
00:06:35.79\00:06:37.13
I got a person
making $30,000 a year,
00:06:37.16\00:06:39.16
he's saving seven
of that every year,
00:06:39.19\00:06:41.70
he's doing well, he's okay.
00:06:41.73\00:06:43.06
All right.
00:06:43.10\00:06:44.43
I mean, quite frankly I think
00:06:44.47\00:06:45.80
the United States
mislabels people as poor,
00:06:45.83\00:06:48.57
poverty based on the
amount of money they make.
00:06:48.60\00:06:50.67
It should be labeled as
how they utilize their funds,
00:06:50.71\00:06:53.74
that's how they
should be labeled, correct?
00:06:53.78\00:06:55.28
So you can have a millionaire
00:06:55.31\00:06:57.18
or a person that
makes a million dollars,
00:06:57.21\00:07:00.38
but spends a million and one
00:07:00.42\00:07:02.45
and he is not
typically a millionaire
00:07:02.48\00:07:04.79
because he's spending
more than he makes, correct?
00:07:04.82\00:07:06.15
Exactly.
00:07:06.19\00:07:07.52
So you can have a
person making a lot of money
00:07:07.56\00:07:08.99
and person making
like 30 or $40,000 a year
00:07:09.02\00:07:12.26
because we're talking the urban,
00:07:12.29\00:07:13.63
we're talking to you guys
00:07:13.66\00:07:15.00
in the urban
demography right now.
00:07:15.03\00:07:16.36
And you don't have
to make that much money
00:07:16.40\00:07:19.17
to be successful,
00:07:19.20\00:07:20.74
but it's key that if you want
to be successful with money,
00:07:20.77\00:07:24.34
you should talk to someone
00:07:24.37\00:07:25.71
that has been
successful with money.
00:07:25.74\00:07:27.74
Exactly.
00:07:27.78\00:07:29.11
You talk to
someone who's wealthy
00:07:29.14\00:07:30.48
and wealth is
basically, how much you can...
00:07:30.51\00:07:33.68
How long can you live
without any money coming in.
00:07:33.72\00:07:37.15
Okay.
00:07:37.19\00:07:38.52
And that is the type
of wealth that you have,
00:07:38.55\00:07:40.49
so if you can live, you know,
00:07:40.52\00:07:43.09
a month before you
need another paycheck,
00:07:43.12\00:07:46.73
then you're wealthy for
month, your month in wealth.
00:07:46.76\00:07:49.70
A monthionaire. A monthionaire.
00:07:49.73\00:07:53.03
You know, if you
save the money to where
00:07:53.07\00:07:55.10
you can live a good year
without any money coming in,
00:07:55.14\00:07:57.94
well, you're
wealthy for that one year.
00:07:57.97\00:07:59.77
But you're
right, you do need that
00:07:59.81\00:08:02.28
continually income coming in,
00:08:02.31\00:08:03.95
but most importantly,
do you need to ask someone
00:08:03.98\00:08:06.41
who is successful,
00:08:06.45\00:08:07.98
who does manage
their money successfully,
00:08:08.02\00:08:10.69
if they have a million
dollars and you know this,
00:08:10.72\00:08:12.89
"Hey, let me
take you out to lunch.
00:08:12.92\00:08:15.36
I'll pay you.
00:08:15.39\00:08:16.73
I'll pay you a thousand dollars
00:08:16.76\00:08:18.76
if you're gonna show me
how I should spend this money?
00:08:18.79\00:08:21.76
How it should
come, how it should go?
00:08:21.80\00:08:23.83
Who should I talk
to? Who do you talk to?
00:08:23.87\00:08:27.47
Who are your mentors?
What are some investment tips?
00:08:27.50\00:08:31.31
You could even ask those
type of questions as well.
00:08:31.34\00:08:33.58
Interesting. Interesting.
00:08:33.61\00:08:34.94
I have another
question for you though.
00:08:34.98\00:08:36.54
When you're looking at someone
that is making 30 or $40,000,
00:08:36.58\00:08:40.88
he wants to invest some money,
00:08:40.92\00:08:42.25
he wants to do
some things with it.
00:08:42.28\00:08:44.15
One of the keys that most people
00:08:44.19\00:08:45.89
aren't really aware of
is the investment markets,
00:08:45.92\00:08:48.59
all of these type of things
that are way over their head.
00:08:48.62\00:08:51.69
Again it goes
back to the key issues
00:08:51.73\00:08:53.50
of getting the
right advice, correct?
00:08:53.53\00:08:56.97
Correct.
00:08:57.00\00:08:58.33
So in the book "The
Richest Man in Babylon",
00:08:58.37\00:09:00.80
he talks about that as well.
00:09:00.84\00:09:02.24
One of the five
laws of gold is that,
00:09:02.27\00:09:05.27
"Never invest money in things
that you're not familiar with."
00:09:05.31\00:09:09.14
So if you want to invest
in whether it's real estate,
00:09:09.18\00:09:12.51
portfolio, or mutual
funds, or stocks or bonds,
00:09:12.55\00:09:15.92
first you must educate
yourself in it, know about it,
00:09:15.95\00:09:20.56
don't just, it's
okay to give it to someone
00:09:20.59\00:09:22.82
who knows what they're doing,
00:09:22.86\00:09:24.19
but you should also know
what that person is doing,
00:09:24.23\00:09:26.90
because like you said,
those football players,
00:09:26.93\00:09:29.06
all those people,
00:09:29.10\00:09:30.43
they did that
00:09:30.47\00:09:31.90
and they got taken in by scams,
00:09:31.93\00:09:35.14
Murnock, good example.
00:09:35.17\00:09:36.64
Interesting. Interesting.
00:09:36.67\00:09:39.17
Do you know what
the top three crisis
00:09:39.21\00:09:43.24
people are
dealing with right now?
00:09:43.28\00:09:45.41
Top three crisis,
well, one would be financial.
00:09:45.45\00:09:48.45
Yes.
00:09:48.48\00:09:49.82
And the second would
most likely be relationships.
00:09:49.85\00:09:54.52
Exactly. Yeah,
you're right on line.
00:09:54.56\00:09:56.19
In relationships.
00:09:56.22\00:09:57.56
And the third one is most likely
00:09:57.59\00:10:01.40
to having to do with their jobs,
00:10:01.43\00:10:02.76
I would say.
00:10:02.80\00:10:04.13
You got it, you
nailed it. Exactly right.
00:10:04.17\00:10:05.83
Workplace stress,
financial issues is number one,
00:10:05.87\00:10:09.10
workplace stress is number two,
00:10:09.14\00:10:10.71
and then the other one
00:10:10.74\00:10:12.07
personal
relationship is number three,
00:10:12.11\00:10:13.44
and they all have
to do with financial.
00:10:13.48\00:10:14.81
Look at what some of the,
a famous basketball player
00:10:14.84\00:10:17.15
is dealing with right
now with his situation
00:10:17.18\00:10:19.58
that also deals with finances.
00:10:19.61\00:10:21.95
Correct.
00:10:21.98\00:10:23.95
Workplace issues have
to deal with paychecks
00:10:23.99\00:10:26.55
and how much someone takes home.
00:10:26.59\00:10:28.29
And then of
course financial issues,
00:10:28.32\00:10:30.23
you spend more than
you actually bring in.
00:10:30.26\00:10:32.43
And then it goes
into other issues,
00:10:32.46\00:10:33.80
but then you
talked about briefly
00:10:33.83\00:10:35.76
how much money do you have
00:10:35.80\00:10:38.33
to survive on if you
lose your job tomorrow?
00:10:38.37\00:10:42.77
That's a key
issue that most of us
00:10:42.80\00:10:44.14
don't aren't really aware of,
00:10:44.17\00:10:46.11
and in the urban areas
we're dealing two years
00:10:46.14\00:10:49.18
before you find another job?
00:10:49.21\00:10:50.85
Correct. That's right.
00:10:50.88\00:10:52.28
Now there's
something interesting
00:10:52.31\00:10:54.15
about all of that, because...
00:10:54.18\00:10:56.48
Okay, I received a call from
a friend of mine in San Diego
00:10:56.52\00:11:00.12
who's a wealthy entrepreneur
that does philanthropist,
00:11:00.16\00:11:02.69
gave a lot of money away,
00:11:02.72\00:11:04.06
developed a
whole bunch of things,
00:11:04.09\00:11:05.76
and I learned a lot from her.
00:11:05.79\00:11:07.53
She connected with
me through LinkedIn
00:11:07.56\00:11:08.96
and we talked a bit,
00:11:09.00\00:11:11.30
but it was interesting,
00:11:11.33\00:11:12.77
she has her own
consulting company.
00:11:12.80\00:11:18.31
And it's interesting, we all
talk about, got to find a job,
00:11:18.34\00:11:21.54
we'll create jobs
for you, unemployment
00:11:21.58\00:11:23.24
and that kind of stuff.
00:11:23.28\00:11:24.61
Do you find the difference
00:11:24.65\00:11:25.98
between a
producer and a consumer,
00:11:26.01\00:11:27.95
and what they actually do?
00:11:27.98\00:11:29.82
Do they have their own business
00:11:29.85\00:11:31.19
or do they work
for other individuals?
00:11:31.22\00:11:32.82
That's a good question.
00:11:32.85\00:11:34.19
And the trend
that's going on today
00:11:34.22\00:11:36.99
is to kind of get
out of the workplace
00:11:37.03\00:11:39.23
working for someone else
and to create your own job.
00:11:39.26\00:11:42.03
I tell my children
and my two kids I said,
00:11:42.06\00:11:44.97
you know, when you get older
00:11:45.00\00:11:46.33
you're gonna
have to create a job,
00:11:46.37\00:11:47.70
rather than find a job,
00:11:47.74\00:11:49.50
and the wealthy they do then
00:11:49.54\00:11:51.67
they might have a job
00:11:51.71\00:11:53.11
but at the same time
they have the secondary thing
00:11:53.14\00:11:55.51
that they're doing,
00:11:55.54\00:11:56.88
whether it's consulting,
teaching on the side,
00:11:56.91\00:11:58.78
whatever it is to bring
that additional income in,
00:11:58.81\00:12:01.58
and that's gonna be
key moving on to the future
00:12:01.62\00:12:04.72
because some jobs
are getting phased out
00:12:04.75\00:12:06.89
because of technology.
00:12:06.92\00:12:08.79
Technology comes, we
don't need that anymore.
00:12:08.82\00:12:12.13
So we're gonna
have to get creative
00:12:12.16\00:12:14.46
in how we look at our future,
00:12:14.50\00:12:16.97
our children gonna
have to get creative.
00:12:17.00\00:12:18.90
Yes, I could be a doctor
00:12:18.93\00:12:20.27
but now I may have to be
a certain type of doctor,
00:12:20.30\00:12:22.84
I'm not specialized
in this rather than that.
00:12:22.87\00:12:25.51
And again find those
mentors that are out there.
00:12:25.54\00:12:27.88
Go out and read
about entrepreneurs,
00:12:27.91\00:12:29.78
what are they doing?
What new jobs are opening up?
00:12:29.81\00:12:33.01
What new technologies
are breaking forth now?
00:12:33.05\00:12:36.12
I have an iPad
and I'll show my son,
00:12:36.15\00:12:38.52
look at all the accessories
that are made for iPad.
00:12:38.55\00:12:41.46
Someone saw also
will make something great
00:12:41.49\00:12:43.49
and they say, you know, what?
00:12:43.53\00:12:44.86
I can make something for that
00:12:44.89\00:12:46.23
and they created their own jobs.
00:12:46.26\00:12:47.60
Yes.
00:12:47.63\00:12:48.96
And with the Internet now...
00:12:49.00\00:12:50.33
Oh, that's even better.
00:12:50.37\00:12:51.70
Its expansion is fantastic,
00:12:51.73\00:12:53.07
you can do so
many different things.
00:12:53.10\00:12:54.44
The key is this.
00:12:54.47\00:12:55.80
Unemployment takes
a job away from you
00:12:55.84\00:12:58.41
but creates opportunities
to develop a business mindset.
00:12:58.44\00:13:02.11
If you talk to the right people,
00:13:02.14\00:13:03.81
don't just jump into it,
00:13:03.85\00:13:05.38
ask questions
about incorporating,
00:13:05.41\00:13:07.78
tax issues, make
sure the talk to people
00:13:07.82\00:13:09.98
about the
ramifications of doing something
00:13:10.02\00:13:11.95
in certain way
versus just jumping in.
00:13:11.99\00:13:14.29
Many people have
been hurt that way.
00:13:14.32\00:13:15.99
But the context is and
talking to our experts, Rodney,
00:13:16.02\00:13:18.39
I really appreciate
what you're doing for us
00:13:18.43\00:13:20.36
and I'll continue to come back
00:13:20.40\00:13:21.93
and get some of
those lines you give us,
00:13:21.96\00:13:25.23
those comments you give us...
00:13:25.27\00:13:26.60
Well, good.
00:13:26.63\00:13:27.97
Those are fantastic, and
I think it lays it in there
00:13:28.00\00:13:29.77
that you don't have to be
a consumer all of your life.
00:13:29.80\00:13:32.71
You can become a producer
00:13:32.74\00:13:35.31
and in producing you
can create your own way.
00:13:35.34\00:13:38.41
Well, that's it. Thank
you. Thank you, Rodney.
00:13:38.45\00:13:40.68
Thank you, sir.
00:13:40.72\00:13:42.05
And you all, Take it
to the Bank and save.
00:13:42.08\00:13:46.29
Wow, there was a
plethora of information
00:13:46.32\00:13:49.56
that was just happened there.
00:13:49.59\00:13:50.93
That guy is
amazing when you talk to,
00:13:50.96\00:13:52.79
I just get, gain
so much information.
00:13:52.83\00:13:55.43
And there are several things
00:13:55.46\00:13:56.80
that I want to
talk to you about.
00:13:56.83\00:13:58.17
I think it's very essential
for you as an individual
00:13:58.20\00:14:01.27
to think a little
about this kind of concepts
00:14:01.30\00:14:04.44
as we drive home a
couple of these issues.
00:14:04.47\00:14:06.81
Many of us may not
have access to a computer,
00:14:06.84\00:14:09.94
but did you know
at the libraries,
00:14:09.98\00:14:11.31
you have free use of a computer,
00:14:11.35\00:14:12.68
if you line up and you
sign up for the computer,
00:14:12.71\00:14:14.62
you can use it for an hour.
00:14:14.65\00:14:15.98
Understand how to use
a computer, get in there,
00:14:16.02\00:14:17.79
get familiar with
it, do some searches,
00:14:17.82\00:14:19.52
find out some things online,
talk about incorporating,
00:14:19.55\00:14:22.52
look and do some research
00:14:22.56\00:14:23.99
about this issue
of business ownership.
00:14:24.03\00:14:28.06
Develop a specific approach
00:14:28.10\00:14:30.80
that you think will
be beneficial for you.
00:14:30.83\00:14:33.10
There are so many opportunities
that are out there.
00:14:33.13\00:14:36.94
And I choose to
talk about that right now
00:14:36.97\00:14:38.61
because the resources are key.
00:14:38.64\00:14:40.71
When you're
looking at getting advice,
00:14:40.74\00:14:43.18
I'd ask you to go down
00:14:43.21\00:14:44.55
to the local
Seventh-day Adventist church.
00:14:44.58\00:14:46.28
They have resources there
for days, talk to the pastor,
00:14:46.31\00:14:49.15
call a sub, send us an
email, ask the questions
00:14:49.18\00:14:51.25
that you may need to ask
00:14:51.29\00:14:52.62
because these
are relevant issues.
00:14:52.65\00:14:54.16
And so today, we're talking
about major financial crisis,
00:14:54.19\00:15:00.23
what causes financial
problems and stressors in life,
00:15:00.26\00:15:04.23
and one of them or
we're gonna group up
00:15:04.27\00:15:06.63
a bunch of them right now,
00:15:06.67\00:15:08.37
and it has to do
with income taxes,
00:15:08.40\00:15:11.14
gambling, and substance abuse.
00:15:11.17\00:15:14.04
We're gonna touch on
those specific issues,
00:15:14.08\00:15:16.61
but focus on the
issue called the income tax
00:15:16.64\00:15:21.72
and gambling issue,
00:15:21.75\00:15:23.08
because those are relevant
to the specific concerns.
00:15:23.12\00:15:25.62
Many people get
out there with an idea
00:15:25.65\00:15:27.36
and a thought process,
00:15:27.39\00:15:28.72
and they don't really
understand the specifics
00:15:28.76\00:15:32.16
of what they
need to prepare for.
00:15:32.19\00:15:33.90
You know, if
you open a business,
00:15:33.93\00:15:35.66
you need to
understand whether or not
00:15:35.70\00:15:37.03
you're doing it
as a sole proprietor,
00:15:37.07\00:15:39.00
are you doing it
as a corporation,
00:15:39.03\00:15:40.77
are you doing it as a nonprofit?
00:15:40.80\00:15:42.57
What are the tax ramifications?
00:15:42.60\00:15:44.21
And you as an individuals,
00:15:44.24\00:15:45.57
as a sole
proprietor need to understand
00:15:45.61\00:15:47.28
that there you need to plan
for how you pay those taxes,
00:15:47.31\00:15:51.38
whether it be on
a quarterly basis
00:15:51.41\00:15:54.05
and how you pay with the taxman,
00:15:54.08\00:15:55.75
because many of us don't
put away money for emergencies.
00:15:55.78\00:16:01.22
And in most situations
when you open a business,
00:16:01.26\00:16:04.16
people don't even
think about the fact
00:16:04.19\00:16:06.09
that the taxman is
gonna ask for his funds
00:16:06.13\00:16:08.80
on an ongoing basis,
00:16:08.83\00:16:10.17
and those can get out
of control extremely fast.
00:16:10.20\00:16:15.17
You know, I'm redundant,
they're extremely fast, fast,
00:16:15.20\00:16:17.24
extremely, yes.
00:16:17.27\00:16:18.61
It's gonna get out
of control quickly.
00:16:18.64\00:16:20.51
What we're trying to tell you is
00:16:20.54\00:16:22.21
little hints of
how you can do it.
00:16:22.24\00:16:24.28
Now, I have a
little caveat for you
00:16:24.31\00:16:26.15
that I like to share with you.
00:16:26.18\00:16:28.25
The story is or this is a case
scenario for us to think about.
00:16:28.28\00:16:33.19
You're a business
owner, not a business owner,
00:16:33.22\00:16:35.96
you work for a company
and you make a substantive
00:16:35.99\00:16:39.29
amount of money, you,
your spouse works from home,
00:16:39.33\00:16:41.46
she is a researcher,
00:16:41.50\00:16:43.57
and she does a lot of
work from a computers at home.
00:16:43.60\00:16:46.77
The both of you bring in
approximately $68,000 a year,
00:16:46.80\00:16:50.97
$68,000 a year.
00:16:51.01\00:16:52.34
Now we're going to be talking
about the issues of tax, debt,
00:16:52.37\00:16:56.11
garnished, wages, zero savings,
00:16:56.14\00:16:59.11
and things that can
push towards of course,
00:16:59.15\00:17:02.68
a faltering relationship,
a faltering marriage.
00:17:02.72\00:17:05.85
In this case, they make
approximately a hundred,
00:17:05.89\00:17:08.56
hundred plus
thousand dollars a year,
00:17:08.59\00:17:10.73
but they have $15,
000 plus in tax debt,
00:17:10.76\00:17:14.00
they owe the IRS, they
didn't plan accordingly.
00:17:14.03\00:17:16.46
The home based business
00:17:16.50\00:17:17.90
they weren't putting a
money away in association
00:17:17.93\00:17:20.77
with that tax debt
on a quarterly basis.
00:17:20.80\00:17:24.47
So they find they ended up
owing money and to the point
00:17:24.51\00:17:28.11
that they weren't
unable to pay it off,
00:17:28.14\00:17:29.48
so what then the IRS did
in this possible scenario is
00:17:29.51\00:17:33.82
they garnished the
wage earner's business,
00:17:33.85\00:17:37.75
wage earner's money or salary.
00:17:37.79\00:17:40.62
So his whole salary or
$800 of his salary is garnished,
00:17:40.66\00:17:45.06
it's taken and it's
put towards the repayment
00:17:45.09\00:17:49.13
of that $15, 000 debt,
00:17:49.16\00:17:51.00
but they're barely able
to keep up with the interest
00:17:51.03\00:17:54.27
on that debt that
the IRS has on them.
00:17:54.30\00:17:56.60
So they're garnishing his wages,
00:17:56.64\00:17:58.04
in addition to
that he is paying...
00:17:58.07\00:18:00.98
they're paying an
additional $250 per month
00:18:01.01\00:18:04.38
to pay down that debt.
00:18:04.41\00:18:06.92
Now let's give you
some background information.
00:18:06.95\00:18:09.22
They make about $6,800 a year...
00:18:09.25\00:18:13.56
Excuse me.
00:18:13.59\00:18:14.92
They make $6,800 a month
00:18:14.96\00:18:16.89
and then they also
spend $5, 900 a month,
00:18:16.93\00:18:19.86
so they have a
$900 buffer in there
00:18:19.89\00:18:22.30
which they should be
putting into savings.
00:18:22.33\00:18:23.97
But yet, they
don't have any savings.
00:18:24.00\00:18:28.04
And then of course, you
take a look at the issue
00:18:28.07\00:18:30.24
that you have
family, you have children,
00:18:30.27\00:18:32.84
and we're not saving any
money of that $900 buffer,
00:18:32.87\00:18:36.04
we don't know where
that money is going.
00:18:36.08\00:18:40.28
Of course, then you
take a look at the fact
00:18:40.32\00:18:41.98
that despite that
extra $900 a month too,
00:18:42.02\00:18:45.15
they're also spending money
00:18:45.19\00:18:47.52
for special runs to
major distribution places,
00:18:47.56\00:18:52.66
they're spending $100 a month
to collect sports memorabilia,
00:18:52.69\00:18:58.90
they're doing what?
00:18:58.93\00:19:00.74
A $67 a month for a YM
health club membership.
00:19:00.77\00:19:06.17
And they're doing
a variety of things
00:19:06.21\00:19:08.31
and yet they're
just scraping by,
00:19:08.34\00:19:09.74
$48 a month for magazines.
00:19:09.78\00:19:12.21
And so you're
getting a perspective
00:19:12.25\00:19:13.58
of what's going on.
00:19:13.62\00:19:14.95
Then you start finding out
00:19:14.98\00:19:16.32
a little bit more
about this family.
00:19:16.35\00:19:17.69
You start asking questions
and saying, okay, yeah.
00:19:17.72\00:19:20.36
What do you have in
reference to assets?
00:19:20.39\00:19:22.42
Well, we have a home. Fantastic.
00:19:22.46\00:19:25.03
Are you behind in your payments?
00:19:25.06\00:19:26.39
No.
00:19:26.43\00:19:27.76
How much are you
spending on your mortgage?
00:19:27.80\00:19:29.13
$2,100 of the $6,800 revenue
goes towards mortgage payments,
00:19:29.16\00:19:35.14
of that $5,900 an expense.
00:19:35.17\00:19:37.54
And of course, you
ask other questions,
00:19:37.57\00:19:40.38
you find out that he may
have a collection worth $30, 000
00:19:40.41\00:19:47.25
that he's been putting
money away every single month
00:19:47.28\00:19:49.75
buying into a collection.
00:19:49.78\00:19:51.65
Now let's look at all
of those items together.
00:19:51.69\00:19:55.09
They're not saving
anything, they have taxes
00:19:55.12\00:19:57.79
that are going
and driving up a wall.
00:19:57.83\00:20:00.33
Any of you that
have dealt with that.
00:20:00.36\00:20:02.56
I have in the past
00:20:02.60\00:20:03.93
and you understand
how it can create stress
00:20:03.97\00:20:08.30
in any type of relationship,
00:20:08.34\00:20:09.87
and you can see the relationship
00:20:09.90\00:20:11.47
spiraling out of control,
00:20:11.51\00:20:12.97
because you have
a spender out there
00:20:13.01\00:20:15.78
who's gonna
control of the finances,
00:20:15.81\00:20:17.98
and you have a
saver that's in there
00:20:18.01\00:20:20.25
but doesn't have any
control of those finances.
00:20:20.28\00:20:23.25
The one that works from
home is the one that saves.
00:20:23.28\00:20:28.82
It's the one that
goes out to work every day
00:20:28.86\00:20:30.56
and he's getting
his wages garnished
00:20:30.59\00:20:32.39
to help pay off that IRS debt.
00:20:32.43\00:20:35.56
He's the one that spends money
00:20:35.60\00:20:36.93
and he's continued to spend
00:20:36.97\00:20:38.30
a whole lot of
money on his collectible.
00:20:38.33\00:20:41.70
Now, you ask specific questions
00:20:41.74\00:20:45.17
and you find
out there are things
00:20:45.21\00:20:47.28
that you can do in your life.
00:20:47.31\00:20:48.64
This is an example to change
the scenario very quickly.
00:20:48.68\00:20:53.35
It's something
that is an actual thing
00:20:53.38\00:20:55.48
that happened,
00:20:55.52\00:20:56.85
it was something that was
out there on the net that,
00:20:56.89\00:20:58.52
that was interesting to me.
00:20:58.55\00:20:59.92
So as an individual,
00:20:59.95\00:21:01.69
what would you do
placed in that situation?
00:21:01.72\00:21:04.59
What would you
do as an individual
00:21:04.63\00:21:06.39
and what kind of
steps would you take
00:21:06.43\00:21:08.60
to solve the problems
that they're dealing with?
00:21:08.63\00:21:11.90
And this is what
the actual consultant
00:21:11.93\00:21:15.14
said to them to take care of.
00:21:15.17\00:21:17.57
One is control your cash flow.
00:21:17.61\00:21:19.97
Control the cash
flow, number one.
00:21:20.01\00:21:21.98
Unfortunately,
that was a drastic step,
00:21:22.01\00:21:24.81
so what they had to do
00:21:24.85\00:21:26.18
is they get to take the control
of the cash from the spender
00:21:26.21\00:21:30.65
and put it in the
control of the saver,
00:21:30.69\00:21:33.25
so you found out the person
that looked more specifically
00:21:33.29\00:21:38.56
where money was going
00:21:38.59\00:21:39.93
and was more apt
to keep a budget.
00:21:39.96\00:21:41.76
Now of course,
they know generically
00:21:41.80\00:21:43.67
where things are up but
they didn't know where that
00:21:43.70\00:21:45.63
$900 of additional funds
00:21:45.67\00:21:47.40
were actually
going on a monthly basis,
00:21:47.44\00:21:49.77
and it was by finding out
00:21:49.80\00:21:51.57
how they could
control their cash flow,
00:21:51.61\00:21:53.21
that they could actually
curtail some of those expenses.
00:21:53.24\00:21:58.51
And that's how they
found out he was spending
00:21:58.55\00:22:00.82
a lot of money on
his collectible items
00:22:00.85\00:22:03.52
that put their children at risk.
00:22:03.55\00:22:06.42
One of the other things,
steps that they took was,
00:22:06.45\00:22:09.52
his family makes
$100,000 plus a year
00:22:09.56\00:22:11.99
and they have a lot of assets
00:22:12.03\00:22:13.36
and they have a
lot of things in place.
00:22:13.40\00:22:15.30
So the second
thing they told him to do
00:22:15.33\00:22:17.07
is get a will and a trust,
00:22:17.10\00:22:19.60
so that your
children are not at risk
00:22:19.63\00:22:21.97
in tying up
things for long terms,
00:22:22.00\00:22:25.51
because you haven't
prepared accordingly
00:22:25.54\00:22:27.84
how things will transition
in case something bad happens.
00:22:27.88\00:22:32.11
Then of course,
they talk to them
00:22:32.15\00:22:33.55
about add a life insurance.
00:22:33.58\00:22:38.75
That is the key thing
00:22:38.79\00:22:40.79
and you'll find it in a
variety of different areas,
00:22:40.82\00:22:43.12
ask business leaders,
00:22:43.16\00:22:44.53
ask individuals that you respect
00:22:44.56\00:22:46.59
about life insurance.
00:22:46.63\00:22:47.96
And that's a critical issue,
00:22:48.00\00:22:49.73
many of our
underserved communities,
00:22:49.76\00:22:51.57
you find are going
through difficult situations
00:22:51.60\00:22:54.37
made even much worse
00:22:54.40\00:22:55.84
because you're not prepared
for these circumstances.
00:22:55.87\00:22:58.41
You find people
setting up car washes
00:22:58.44\00:23:00.88
and other type of fundraisers
00:23:00.91\00:23:02.98
to help these
families in difficulties,
00:23:03.01\00:23:05.28
raise the moneys that they need
00:23:05.31\00:23:07.68
to help take care
of the final transition
00:23:07.72\00:23:11.59
of bearing their
child, or their loved one.
00:23:11.62\00:23:15.39
It is something
that's so simple to do
00:23:15.42\00:23:18.43
and they're very inexpensive
00:23:18.46\00:23:20.20
if you get in
while you're young,
00:23:20.23\00:23:22.46
and that's a key
issue to take a look at.
00:23:22.50\00:23:25.20
And of course, we
need to take a look
00:23:25.23\00:23:27.27
at how we get rid of the debt.
00:23:27.30\00:23:29.34
Once we assess
our current situation,
00:23:29.37\00:23:33.21
then we know what we need to
do and what we need to go after.
00:23:33.24\00:23:35.81
Now the critical
item in all of this
00:23:35.84\00:23:38.15
had to do with
this $15,000 IRS debt.
00:23:38.18\00:23:41.92
This individual is
getting his wages garnished,
00:23:41.95\00:23:45.72
and yet he's sitting
on a $30,000 collectibles
00:23:45.75\00:23:51.13
of whatever they could be,
00:23:51.16\00:23:52.49
cards whatever the case is,
00:23:52.53\00:23:53.86
but he's sitting on this
00:23:53.90\00:23:55.23
that has a value
that's significant.
00:23:55.26\00:23:57.97
What would you do?
00:23:58.00\00:23:59.90
The decision is their, you have
a collectible worth $30,000,
00:23:59.93\00:24:03.51
you have a tax lien on
your garnishing your wages,
00:24:03.54\00:24:08.84
and it's $15,000
causing this monkey in the room,
00:24:08.88\00:24:12.85
all the time you're dealing
with your garnished wages,
00:24:12.88\00:24:15.72
you're dealing with these issues
00:24:15.75\00:24:17.19
that's tearing
your relationship apart,
00:24:17.22\00:24:19.49
what would you do?
00:24:19.52\00:24:21.02
Remember, Luke 12:15,
00:24:21.06\00:24:23.83
it's not about the
abundance of your possessions,
00:24:23.86\00:24:26.09
what matters is what
you can do with the funds
00:24:26.13\00:24:27.90
to help your
family and to help others,
00:24:27.93\00:24:30.07
getting rid of that tax debt
will do something accordingly.
00:24:30.10\00:24:33.20
In addition to that, a
couple of other solutions
00:24:33.23\00:24:35.50
that were provided was
00:24:35.54\00:24:36.87
to set aside money on a
quarterly basis for taxes.
00:24:36.91\00:24:39.97
So they were able to recommend
00:24:40.01\00:24:42.04
an automatic deposit
into a savings account,
00:24:42.08\00:24:44.88
so that money is
waiting on a quarterly basis
00:24:44.91\00:24:48.02
to pay on those taxes
00:24:48.05\00:24:49.98
for the entrepreneurial
sole proprietorship
00:24:50.02\00:24:53.19
that she had working from home.
00:24:53.22\00:24:55.66
Those are the minor items
that could take care of things
00:24:55.69\00:24:59.09
and there's one other thing
00:24:59.13\00:25:01.40
is checking into increasing
your emergency savings fund.
00:25:01.43\00:25:05.53
Those are the major
items that were discussed
00:25:05.57\00:25:08.84
as a possible solution
for these people's concerns.
00:25:08.87\00:25:14.64
So where are you?
00:25:14.68\00:25:16.38
What are you doing?
What are your concerns?
00:25:16.41\00:25:18.61
What are your
stressors right now?
00:25:18.65\00:25:20.45
In this situation,
00:25:20.48\00:25:21.92
they were able to
talk the gentleman into
00:25:21.95\00:25:24.95
selling his
collectibles at a lower rate
00:25:24.99\00:25:28.12
but he was able to get
00:25:28.16\00:25:29.49
the $15,000 out
of that collectible
00:25:29.52\00:25:31.79
and pay off the debt,
00:25:31.83\00:25:33.53
and that put them in a
whole different situation
00:25:33.56\00:25:35.63
because he's now not
having his wages garnished,
00:25:35.66\00:25:39.47
he has more money to
put away into savings,
00:25:39.50\00:25:41.90
they're more relaxed,
00:25:41.94\00:25:43.27
they have life insurance
and that type of thing.
00:25:43.30\00:25:45.71
That if you don't take
an active look at assessing
00:25:45.74\00:25:49.44
where you're at,
creating a budget,
00:25:49.48\00:25:51.81
putting away
emergency savings money,
00:25:51.85\00:25:53.92
going after paying off debt,
00:25:53.95\00:25:55.55
you're gambling with your life,
00:25:55.58\00:25:57.29
you're gambling
with your family's life,
00:25:57.32\00:25:59.05
and it's essential
that you take a serious look
00:25:59.09\00:26:02.02
at these specific guidance.
00:26:02.06\00:26:03.73
When you take a look at gambling
00:26:03.76\00:26:05.29
which is another major
area of financial concern,
00:26:05.33\00:26:08.03
it impacts a lot of us
00:26:08.06\00:26:09.56
close to 10% of individuals
according to the study
00:26:09.60\00:26:14.84
that it impacts up
to 9.6% of individuals
00:26:14.87\00:26:20.21
are at risk for
gambling issues specifically,
00:26:20.24\00:26:23.61
however about they say that
00:26:23.65\00:26:25.68
only about 4.8% of individuals
00:26:25.71\00:26:29.18
are moderate to severe gamblers.
00:26:29.22\00:26:31.59
What does that mean?
00:26:31.62\00:26:32.95
I'm not quite sure,
but it does say this.
00:26:32.99\00:26:35.52
Gambling is something
that's relevant to all of us.
00:26:35.56\00:26:39.19
Substance abuse is also
an issue that's relevant
00:26:39.23\00:26:42.13
and it's
impacting our young people,
00:26:42.16\00:26:44.30
as well as those in our
underserved communities.
00:26:44.33\00:26:47.17
We have to figure out a way
00:26:47.20\00:26:48.77
how we can get people away
from taking a risky attitude
00:26:48.80\00:26:55.58
and not thinking
about the ramifications
00:26:55.61\00:26:57.95
of what could happen.
00:26:57.98\00:26:59.65
Work related
difficulties happen,
00:26:59.68\00:27:01.42
productivity goes up,
00:27:01.45\00:27:03.02
productivity goes
down, absenteeism goes up,
00:27:03.05\00:27:06.32
we look at
higher rates of suicide.
00:27:06.35\00:27:08.69
We see that there are
higher rates of guess what?
00:27:08.72\00:27:11.96
Marital
breakdowns, family breakdowns,
00:27:11.99\00:27:15.13
the family goes away
00:27:15.16\00:27:16.63
and that's one of the key issues
00:27:16.67\00:27:18.00
that people
aren't thinking about.
00:27:18.03\00:27:19.90
We're looking at
people beginning the process
00:27:19.93\00:27:23.30
because they get into debt
of seeking illegal activities
00:27:23.34\00:27:26.81
to support their gambling
00:27:26.84\00:27:28.74
and there are those
concerns and then of course,
00:27:28.78\00:27:31.75
there is
significant financial loss
00:27:31.78\00:27:35.82
when you're not able to
put a lot of these things,
00:27:35.85\00:27:38.52
these concerns that
00:27:38.55\00:27:40.16
all of us need to
address into check.
00:27:40.19\00:27:44.89
And so we're
talking about income tax.
00:27:44.93\00:27:47.13
Seek a professional
for advice, talk to them,
00:27:47.16\00:27:52.10
additionally talk to the family,
00:27:52.13\00:27:54.77
work out things
that can help you better
00:27:54.80\00:27:58.01
take money to the bank.
00:27:58.04\00:27:59.77
God bless you.
00:27:59.81\00:28:01.14