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Life insurance advice with Clark Howard
"Right. Clark yolanda in north carolina says. I'm a forty one year old single parent. I'm looking at life insurance. But i'm not sure how to determine what i need. I've a two year old son have policy through my employer currently in a small policy that should cover funeral. Expenses checked a few companies. But i'm just not sure where to start on this. Okay wonderful the you're looking out for your kids and what i recommend as just a back of the envelope. Simple way to come up with an amount is that you buy a policy that covers ten times. Your annual income that will provide a decent pool of funds to provide for your children in the event of your untimely devise. so that may sound cost prohibitive. But it's not if you buy the right kind of life. Insurance which is known as a level term insurance level term is where you buy for a set amount a set amount of life insurance or face amount of you know how many hundreds of thousands of dollars or whatever it would be for a period of time. You're worried about protecting your children. Ten fifteen twenty thirty years. Whatever that period is on clark dot com. You'll see my guide to buying level term insurance and there are many quotation sites. You can go to to get quotes for many different insurance companies. Whether things. I want to focus your attention on. Is that particularly if you go out. More than fifteen years on level term. I want you to buy a policy from a company rated a double plus by a m best on any of the shopping services that i would direct you to they will show you the a. m. best rating. Which tells you how healthy the insurer is itself. So the eight double plus means they have the highest level of ability to pay claims in the future. Because you wouldn't wanna pay for life insurance policy that later isn't going to pay out for you. Level term insurance has no goofy Savings accounts are investment accounts. It only pays a death benefit to your survivors period. That's all it does in the case of buying policy where you're a single parent and you have minor children. That policy usually will be done in a trust kind of arrangement. Don't be intimidated by that. The online sellers are very familiar with this. And you will be able to have someone you trust. Named is the trustee of that in the event that you pass away while your children are still minors
The issues driving healthcare in 2021
"Researcher and widely known industry expert. Paul recently wrote about what he sees coming for healthcare and twenty twenty one and we're happy to have him back on the show to discuss his analysis. Paul welcome back. Thank you mike. So lots to unpack with healthcare from this past year of twenty twenty and heading into twenty twenty one. And i think it just makes start. It makes sense the sense to start talking about Cove in our discussion. So what do you see for. Vid financial relief going forward for both patients and providers in two thousand twenty one well in addition to the three trillion of relief funds that have come through the system. in twenty twenty There'll be another trillion that comes through with targeted to unemployment benefits to small business and some individual relief for certain populations but The way to think through this is the first six months of two thousand and twenty. one are Were managing the last hopeful stage of the pandemic in the us but it's lingering impact will continue long after the first two quarters The economy a world closed twenty twenty when we get those final numbers at about seven to four percent below On the gdp basis and our federal deficit will be sitting somewhere around twenty seven trillion and change so our net worth As an enterprise if you will Will reflect an eighteen trillion dollar Asset and a twenty seven trillion dollar long term deficit. So we gotta. We're upside down on the deficit side and that'll become more important as we can have come out of the pandemic in the last two quarters of next year and beyond so mike i think pandemic is still the story but it's pandemic and what's next and a lot of that will be defined by the policies of the administration and much of that defined by the constitution of congress especially the senate because this was not the change election that democrats had expected a more A repudiation to some extent of kind of a far left view of government Voters like the idea of a divided government especially the top half of the income ladder and the market says. We're not so sure that congress ever figures things out as easily as the private sector so there was a pretty significant rejection of some of the bigger government run solutions. That's not going away but it's been buffered by the election so The way to think through the next two years at least is incremental changes that will satisfy more kind of a centre-left anna left side of the voting spectrum but not the major changes that were promised in the campaign. great analysis paul Let's talk tacticly about
Is Student Loan Forgiveness A Good Idea?
"Right now on the. Us government federal balance sheet there's loan receivables over a trillion dollars of student loan debt sitting there as a receivable for the fiscal year ending nineteen total assets of the federal government worth three point nine trillion of which one point one trillion was direct student loans. But here's the thing. Three point nine. Trillion in assets twenty six point nine trillion in liabilities. The difference the deficit is twenty two point nine trillion dollars. The us government is effectively insolvent. It does more than its assets. And if the us government road off four hundred and forty billion dollars of student loans it would just increase the level of insolvency. It would not sink. The government by any means the education department according to some private consulting work that they contract it out understand what the potential losses are on their student loans found. According to a report by the wall street journal that losses on the one point three seven dollars of student loans outstanding at the time this report was compiled would equal four hundred and thirty five billion dollars. Only nine hundred and thirty five billion would be paid back and that didn't include about one hundred fifty tonnes originated by private lenders that are guaranteed by the government each year. The government lends a hundred billion dollars to students to cover tuition to more than six thousand. Colleges and universities doesn't look at credit scores or the field of study or whether students will make enough after graduating to cover the debt. The wall street journal article reported that between two thousand five in two thousand sixteen four intent student loans. Most of them federal went went to borrowers with credit scores below the subprime threshold. That's assuming they actually had a credit score. Which at the time. That i took out my first student loan which i'll talk about a little later in this episode. I didn't have a credit score. Nor frankly i know what i was doing. But here's the thing. The consultants found out that a major driver of those losses were students. Who went on some type of income driven repayment plan. An income share to wear they only had to pay a percentage of their income and ultimately the loan could be forgiven after a number of years. If a loan isn't paid back in full because the payments are based on income in income isn't growing and ultimately the alone is written off after twenty years or so then that will lead to a loss in addition that study found that there are millions of other borrowers that would default on smaller amounts typically less than ten thousand dollars after the drop out of a community college or a for profit college one of the comments in this wall street journal article on the private consultants conclusion regarding the potential losses. For the us government. Student loan program is that taxpayers would be on the hook for this if the government off four hundred and forty billion dollars of student loans. Us government would receive less interest income and principal payments annually interest if we assume a five percent interest rate on one and a half trillion dollars of student. Loans is is only about eighty five billion dollars. now. I say only because total. Us government revenue is three point four trillion dollars. Interest income from student loans is only about two and a half percent expenditures in fiscal year. Twenty twenty six and a half trillion dollars. The deficit was three point. One trillion fourteen point seven percent of economic output or gdp nominal gdp and fiscal year. Two thousand twenty was twenty one point two trillion dollars. This deficit was fourteen point seven percent of that number the highest since the great financial crisis where the deficit was nine point. Eight percent the highest deficit ever was in nineteen forty three at twenty nine point six percent of gdp. The us ran three point. One trillion deficit in twenty twenty and the federal reserve increased the amount of treasuries on their balance sheet essentially funding that deficit. Two point two trillion dollars is the additional treasury bonds that the federal reserve bought so two point two trillion of the three point one trillion dollar deficit. These student loans are tiny percent of what the government is spending much of which the federal reserve financed indirectly. Veterans are didn't just give the money to the treasury. they went through the county mechanism of buying treasury bonds. But that's what happened. The federal reserve created the money out of thin air to purchase treasury bonds to plug the deficit now when i started hearing about forgiving student. Loans cancelling them. My impression was the student loan. Burden is as high as it's ever been. That students are struggling tremendously compared to when i took out student loans in the late eighties and early nineties. What i found was the average student loan and again this is based on data from marc canter wits. This is just the average student loan balance for graduates with bachelor's degree when they leave school in one thousand nine hundred nineteen ninety-three. It was ninety three hundred dollars. Forty six percent of students had student loan debt. That's about how much i had little over ten thousand dollars in student loans. When i left graduate school today. The average student loan balance is twenty nine thousand nine hundred dollars just for students. With bachelor's degrees sixty nine percent of graduating students have student loan balances. That amount going from ninety three hundred to twenty nine thousand. Nine hundred was a four point. Six percent annual increase. Now that's a burden no doubt and if it growing at four point six percent it's growing faster than inflation yet if i look at what students are making when they graduate in nineteen ninety-three or year after they graduated so in nineteen ninety-four an engineer. Starting salary was thirty thousand. Nine hundred dollars. A humanities graduate was making twenty one thousand three hundred dollars so if we compare that salary to the amount of their debt engineer made three point three times. The amount of student loan debt they had and the humanities major may two point three times the amount of student loan debt they have if we look at what engineers typically make coming out of university. Today it's close to seventy thousand dollars or about two point three times the amount of their student debt back in one thousand nine hundred. They made three point three times the amount that they owed now. It's two point three times so they own more relative to their salary but the interest rates are lower now. So they're able to handle that. But it's not this huge change that i had expected for the humanities graduate. They went from earning two point. Three times Student loan balance to one point eight times now. Part of that is pell. Grants which are grants given to low income students to essentially pay for school. I got a lot of pell grants when i went to school. That program has only grown about three point nine percent per year the maximum payout amount per student so it has not grown as fast as student debt levels. Now we can say well may be. College graduates are able to find jobs. The unemployment rate for recent graduates was five point one percent in nineteen ninety-two it was three point. Nine percent before the pandemic hit in february twenty twenty and so a greater percentage of recent graduates had jobs in early. Twenty twenty then back in nineteen ninety-two now. The unemployment rate at least in september was nine point one percent according to some data from the new york fed which suggests that yeah Graduates are struggling to get jobs. It is harder today than it was in nineteen ninety two but not that much difficult. And i don't recall calls to cancel student. Loan debt back in the early to the mid ninety s
Can You Pay Your Mortgage with a Credit Card?
"Yeah so. Let's talk about matt how you could potentially use a credit card in order to pay for your mortgage like jen said. It's pretty hard to come by. We'll do our best to give you just a couple of that. You could potentially consider and interestingly enough you're more likely to find an apartment complex or landlord who's willing to accept credit cards for rent payment. Then you are to find a bank willing to accept a credit card for a mortgage payment for instance if your landlord uses a service like cosy. You can choose to pay via credit card. Although at the same time you're gonna pay a fee in order to do that and even the mortgage servicers that do accept them on the fee that they pay to oftentimes plus extra at the time of the payment so i do have one mortgage company that will accept credit cards. Nice but i. I can't i forget if it's two and a half percent or three percent need to go back and look so it just never make sense. It just negates the bonus from the car exactly right so and then another potential option is you could use the checks. Your credit card company sends you aka the convenience checks if they certainly will want you to start using convenience. Checks is what they call them really what they heart like cash advance checks and they're just not good for you because of the fees that are charged for using those checks they sent out to you and it's typically somewhere between three and five percent so again with those as well. It just doesn't make sense to use them in order to pay your mortgage and that's because the rewards that you're getting from doing so are typically capped at two percent. It just doesn't make sense to pay four percent to get two percent. Yeah sure unless. Amex starts categorizing mortgage payments as groceries right. Exactly six percent two percent spread but jin a roundabout way that we've heard of before is to use your credit card to purchase a money order deposit that money order with your bank and then pay your mortgage with the account that you deposited the money order into however the the problem there is. There's only a couple of money order. Companies who accept credit cards just Western union seven but even then another hurdle or the big fees charged by the credit card company. By the way. I like to get my money. Orders when i get my slurpee at seven and that's perfect combo. I don't think there are seven. Elevens around us are there like i don't see them anywhere near atlantic. Maybe in the burbs. We don't like near where we live. Yeah yeah but the the problem here though is A money order jen. You're gonna touch on this. It's a type of guaranteed payment right and so much credit card. Companies are going to treat that expense as a cash advance. And so because of that you'll be charged for it again in the in the three to five percent range so again this is another instance where the benefits you would receive would be outweighed by the fees that they're going to charge plus in this case. There's a lot of hassles. Well we're gonna keep coming up with option. Here's one more. Plastic is another Website that you could turn to. It's the one option that we know that allows you to pay a bill like a mortgage with your credit card and it's worth looking into matt. You've used this before when they had promotional offense but they don't have a professional offering the rate that they charge us two point eight five percent and so again the only time that it would make sense to use plastic to pay mortgage is potentially in the case that you need to hit a credit card sign up bonus in order to score what like six seven eight hundred dollars from the initial spin that you gotta meet with credit card if you're having trouble meaning it through other things that won't Charge you a fee that it might make sense to pay your mortgage with that credit card through a website like plastic at least just at once in order to make sure that you get that sweet bonus and basically the way plastic forks. Is that when you pay via their website. They then cut a check to the mortgage company. Nashville paper check. So that's how that's how it works. It's certainly an interesting service. And when they do have promo lineups matt. Didn't you at some point. Five grand and free money. Think so and so. This was a couple of years ago. I think when they first launched But basically they were giving away fee free dollars and so you had to spend limit in. Hey up to five thousand dollars. We'll cut those checks for you free of charge. And so i was able to like you said literally. I was able to hit a spend limit for a new credit card. Sign up bonus That i may not have otherwise hit but to be honest. I have not seen any other sort of promotions like that. Since then you are able to get fee free dollars by referring friends and so every time you refer somebody they use their service. You will then receive some feverish dollars but again. This isn't something. That is really sustainable. it can be something that maybe do once saying here to hit a spend limit but otherwise. It's not something that you can kinda regularly go to and so jen for you. It's probably just stick with those automatic. Ach payments and then. Just keep an eye out for you. Know maybe codes that plastic does put out there to kind of maybe less than that fee for at least a month or two of payments ultimately trying to get your mortgage on a credit card. It's just a lot of hassle and even if you were able to get to work out you likely won't be earning enough in cashback to to actually make it. Worthwhile might be more of a key hot pursuit or audit quixotic. Okay all right so yeah. It might be one of those things where you're tilting at windmills. You're pursuing an opportunity to try to earn greater cashback when you're paying your mortgage but ultimately there's just not a cut route that exists in order to help you do that. And score those cashback rewards every month without paying fees that outweigh the potential opportunity.
Dollars and Sense by Colin Wright of Exile Lifestyle
"Now. Today's author is a pretty rare one for the show. He's a well known. Minimalist and traveler often featured on one of our other shows optimal living daily. So if you like his style definitely check out that show again. That's optimal living daily. But for now let's get to his post and start optimizing your life. Certain dollars and cents by colin. Right of exile lifestyle dot com. I've never been rich per se. I certainly climbed my way out of the middle class into the upper middle class. When my branding business blew up after a few years in los angeles but wealthy as a goal post that seems retreating towards the horizon. I still intend to reach that goal. I just hadn't made my millions quite yet. When i decided to leave the path i was on so now i have a very different view of wealth and the role. It plays in my life when i left that trajectory that focused pursuit of numbers in the bank account. I was obsessed with a single metric. I had been a video gamer as a kid. And i saw business as just another game to play and one with controls and in game physics at which. I was quickly becoming an expert. I knew how things worked. And i knew some of the cheat codes and i was having fun playing my score grew and grew and i felt good knowing i could get it even higher but at some point i realized there was another game one outside the arcade kiosk. I had been standing at all my life and the points. I had been accumulating. Didn't seem quite so meaningful anymore. I had always aspired to see the world to increase my knowledge of it and to be the kind of person who understood how things worked how they all fit together. I'd play my game until i cheated. Mastery then take what. I learned and apply it to the wider world. Business would be my training ground. My tutorial and i would emerge from that world champion of lifestyle fitness worth mimicking and basking in the administration of those who spent less time honing their combo moves and swat analysis capabilities. I would in effect skip most of the rungs of the ladder of life because of how well did on the training stairs which changed. My direction was the realization that business knowledge does not equal wisdom or intelligence or even make you a likable person. It just makes you good at business. Having more money does not make you a guru of all. Things just accumulating dollars and money is a single aspect of life one gateway to getting what you want but by no means a yardstick for being a good person or a smart one or one with a philosophy worth sharing all my life i had been chasing dollars but not sense and when i changed direction i still had knowledge that would help me on my new path but like changing high schools. I had to start fresh in so many ways new friends and partners and classes. It was like the picture of the world. I had painted for myself on the biggest canvas i could find with suddenly just one pixel on a massive and complex screen. I knew so little had achieved so little. It was overwhelming but exciting. The world was a much larger place. And i had assumed and rather than finding myself running the same race playing the same type of game. I started investing my quarters in a challenge that didn't have an ending. There would be no final boss to defeat and no high score that would obliterate everyone else's there were as many pass to victory as there were players changing. Your context is disorienting. But so long as you're opening yourself up to more rather than closing yourself off from the reality of life as an infinitely complex experience you can only grow as a person and we'll probably be focusing on more important things as well. There's nothing wrong was chasing money so long as it makes you happy. And so long as you're aware that there are other point systems out there that are just as or more important to your development. Even better is being capable of seeing the world as an interconnected series of games each one worth playing in each one influencing where you start and how well you play all the others. What's been vitally important for me during this transition which is still going on years later is how it's changed my perception of the game as a whole whereas once i competed with everyone else in the business world doing what i could to top their accomplishments with my own and climb a bit higher on the leaderboard now it compete with myself to better myself. A single player mentality that leads to more significant performance in a multiplayer world. There are many many metrics used to gauge success but leading a rich complex multifaceted and challenging life is the only type of competition that makes sense to me. Sir
Where to Invest First by Derick Van Ness
"Where to invest i by derek. Van ness of big life financial dot com. What i'm about to say is controversial. So-called pundits don't want you to know this in eliminates reliance on them they become obsolete su. Here's the unspoken but important truth. Nothing is more vital than investing in yourself. You are the key to everything in your life without you know doors open. No opportunities are unlocked if you are worthless hopeless and helpless than your results will be the same your finances. Your relationships your health without these. What is life were yet. You'll know that you suck that can be crippling and you playing small. You can't let it. You were the only one who can choose nobody else chooses. This verdict or can take action for you. So what do you do. Becoming strong is the answer. Now so you can bulldoze or take advantage of others the complete opposite strength to become so valuable that others don't wanna live without you and what you've created. You know you've accomplished us when it's as if you've become a great lover in their life without you there existence doesn't taste nearly as delicious. You are creating the music they dance to. At that point they will do whatever it takes to keep you around. You have become the soil where they want to lay their seeds and grow their life. This is the goal. It may start slow but it doesn't have to quantum leaps exist but you'll need to suspend your current beliefs to see them. He needs to paint from a blank canvas. Not the one with your current picture of life. It sounds scary. But that's why it's a leap as you get. Better sodas your life. It's a simple equation. And you are the key variable the multiplier that expands everything in your path ambitious. This means becoming indispensable the key asset strive to become the wheel rather than a cog in the wheel. Someone whose value is so powerful that you're not dependent on outside circumstances for your success. This is non-negotiable if you want freedom your primary business or income will dictate the lion share of your financial standing. This is your foundation the rock upon which will build your kingdom. You must master your craft so that you can access resources without proper resources. It's difficult to become your best self. Your financial success will go a long way and paving the smooth road for your relationships in health. Money isn't the answer. But it's far better than poverty if you want true success if your goal is to be a contribution to the world when you invest in yourself. The possible returns are unlimited literally. Where else can you invest five thousand dollars and make six figures. I did it you can too. I spent sixty thousand dollars learning to invest in real estate and it has made me several million dollars. I've spent six figures in seminars trainings in self-improvement and business courses they returned triple digit returns. Even better they continue to earn for me each day. More business income better relationships healthier and happier lifestyle. More intimacy with my creator. So this is your warning. Success isn't somewhere out there. It's an here invest in your human capacity. Your skills and your business you are the craftsmen who will scope the picture of your life. So focus on being the best crossman. Possible once you're performing at a high level and the money is flowing then we can talk about the framework to take you. Even higher optimize cashflow build assets save taxes as you become more successful. You'll need better systems for saving growing and protecting your assets. Until so then dropped the distractions focus on the most important thing developing yourself and your business live the life you were meant to live pursue. Excellence and all you do. The world's will reward you with a rich life and not just financially. You'll experience more love appreciation and gratitude. Best of all. You'll sleep better knowing the world is better because you existed
Pandemic wage gains were just a fluke
"Come friday. We're going to get the latest stab shot on average hourly earnings in this economy and it is expected to show continued strong winds gains but our guy on economic statistics mitchell hartman. He says best to ignore that and focus instead on the trouble yet to come so a crazy thing happened on the way to the pandemic recession. After the economy shut down and twenty million people lost their jobs. Workers average hourly earnings went up skyrocketed. Actually up eight percent year over year but what got was was not signal. Joseph bruce willis is chief economist at rsm consulting. He'll be our guide through this thicket of wage data and when he says noise not signal he means fast. Rising wages have been a statistical anomaly of the pandemic economy high paid professionals kept working from home and mostly held onto their paychecks but millions of mostly low paid service workers lost their jobs. When you've got forty percent of households making forty thousand or less seen a job loss or loss in wages. That explains that head. Fake if you will on wages forty year old cinnamon deutsche is. An example of what bruce willis is talking about. She was teaching at a childcare center in asheville beulah ohio when it closed and she got laid off in march her three hundred and fifty dollars a week. Paycheck disappeared from the average earnings calculation. But she got unemployment which included six hundred dollars a week in extra federal pandemic pay until she was hired back three months later. I made twice as much on unemployment with the extra six hundred dollars. As i do now but i am glad to be back to work. I mean i like going to work so like many americans do inches. Income actually went up for a while because of additional unemployment benefits and relief checks but those temporary effects are fading. And just says we're in for a rude awakening. What i think we're going to see is a very bifurcated. Wage market this idea that k shaped economy separation between the hadgem. The have notch bruce willis says the haves those who work in what he calls. These zoom economy will have made goes at the upper end. Those who are already thriving. There's going to be competition for those workers. you know. Premium place their wages but for lower wage says workers even as the economy reopened and employers. Start staffing up again. Those in the middle to the lower end of the market where the damage occurred. They're not going to see a lot of wage growth. That's due in part to supply and demand. Lots of unemployed workers looking for jobs not enough job openings to give them leverage to demand higher pay. then there's something. Economists call downward nominal wage rigidity firms during hard times ten not reduce. The wages of the employee said they keep on the books but when the times get better wage gains core restrained. That is pretty much what cinnamon joy is seeing in her job. She's back at work fulltime at her previous salary of three hundred and fifty dollars a week. The extra unemployment income she banked back in the spring has run out. My credit card is back up to you. Know almost max out trying to pay five or ten bucks extra so that i can pay that down. I make enough money to pay my bills and have mcdonald's once in a while but you know if my car breaks down or have an emergency am just outta luck i i have to borrow from. Somebody doesn't expect chill get a raise until she hits ten years of service in twenty twenty
Set Your Money Intentions For 2021
"The first intention that i really want to throw out there is the idea of throwing out your budget and getting yourself a vision and what i mean by this. Is i want you to think about budgeting towards your values and permission to leave all of the numbers behind and permission to leave a lot of the mechanisms behind budgeting behind. Drake find something that fits for you and that fit in in your life. If you can do that then gonna stay motivated with us and then the numbers are actually gonna come alive. They're gonna feel engaging an exciting to you even if they're not exactly where you want them to be yet so when you know what your values are anytime you make a decision than you know if it's a right one if it aligns with your values and there are a lot of different values we're all going to have very different values but you know some ideas of like core values. Our freedom prosperity personal growth. Compassion fitness courage working smarter and harder or financial grocery so you could have a plethora of core values maybe only have a couple of core values in that is what you measure your money against. Hope that makes sense so instead of budgeting the traditional way or a way. That feels uncomfortable and unapproachable to you to think about a couple of things. How much money do you need each month just to pay your bills. That's what i call a foundation number so figure out what that number is for you. So what do you need to pay all the things that you absolutely have to pay your rent your mortgage your car payment. Your insurance the minimum payment on your credit cards. Your student loan payment. What is that number. Include groceries in that number. Because we gotta eat. And i know we don't currently live in a world right now where a lot of us can go out to eat where all various stages depending on where we live. But don't add that number in just yet just at the grocery number in and figure out what that number is for you so you have an idea okay. This is my foundation number. This is the number that i need to make sure. I make enough money every month to just cover this number. Write this number. Keeps the lights on for me. Great then i want you to figure out. What is your plan for any extra money that you make. If you leave that money in your bank account it's gonna go into the black hole or tax hall of money and you know this place while you know well well if i leave extra money in my bank account it just magically like disappears and i'll go in my bank account. I know there was an extra three hundred or five hundred fifty dollars or whatever it is. Where did this money go. It just favor rises. It's just human nature and that's okay but we need to make sure that you make a plan for that extra money whereas can ago and also figure out. How much do you make. So what are the gaps between your foundation number. And how much you make. Is there a gap there in for a lot of the enters. No you make enough to to cover all your basics so then okay then you're looking at well. What's the difference. How much leftover. Let's just pick a number. Let's say that number is a thousand dollars. A month have leftover. What am i going to do without money. Where am i sending that money again. This comes back to my values. What is it that. I really want out of life. If my core value is freedom maybe i might send that thousand dollars to investing or to retirement or maybe towards buying a second house somewhere. You get the idea. So i'm aligning my money with my core values and that way money is coming to life in a way that is tangible that is more tangible than just. If i'm writing numbers on a sheet of paper. I hope this is making some sort of sent. It takes a little while for this to kind of click in and really work for you but once it does you'll see how easy this is when you ask yourself. What do i want my money to do for me this month. What my money to do for me next month. This quarter this year. Have an idea in your head again. It doesn't have to be sent stone but have some idea. And then i want you to think about if you paint the ideal vision for your life. What would it be without auditing. Or judging what your thoughts are what would that be without. Look like for most of us. The answer comes down to money is getting in the way of that. There's usually something that's stopping you from getting to that vision if it's money which it is for most of us that's just the honest truth. Okay how much is it. What would you need to do or to change to even get yourself a fraction closer to that. What are some like small micro steps that you can start taking and then i always want you to remember that money changes. They happen inch by inch. So it's the day in day out steps that you take the decisions that you make and choices that you make around money. That's how you affect the biggest change with your money. It isn't suddenly getting this huge bonus at work or inheriting a ton of money. I mean those things are always fantastic. But let's be honest. that doesn't happen every day. What can hope happen. Every day is a choice that you make a positive decision that you make and little by little those really start transforming your money and your life in in really powerful ways the the next intention is i will make my stimulus payment and or my year end. Bonus count so many of us. Maybe that's you will get however much. It is an stimulus payment. If that's not you maybe you're going to get some sort of bonus tax refund. Whatever it might be this year. So i just want you to make this intention of making that money really count if you have debt. Think about paying down what i call expensive and for me expensive. That is any debt with an interest rate of seven percent or higher. Now you can define your own definition of expensive dead. That's just mine. We're living in a interest environment right now. Pretty much around the world that is a pretty low interest too so buying cars or different things like that with with our interest. Usually the interest rate is so low that maybe make sense to buy something on alone versus. Just pay in cash for it again. I'm just speaking in generality but when we come to debt expensive debt like credit card debt or any type of loan. If we have extra money we wanna make sure that we're sending that money off in powerful ways and the best advice is to send that extra money off to pay off expensive dead if you want to invest think about taking this money in setting aside portfolio or picking a company or two that you really like to invest in with the idea that however much money this is you're going to get it to grow. I was like us either. Fifty fifty or seventy thirty type rule around this. I don't always want to put all of my money. That i've the extra nation say into investing. I like to split it up a little bit. So that there's a little bit maybe and savings and then a little bit goes to investing but again. That's my own personal intention so you can either use that or create one that works for you.
The Most Reliable Used Cars
"So i've had an obsession forever about why buying a used vehicle is so much better for your wallet than buying new. There are a lot of people who love new vehicle smell. They want that new vehicle and if it works for you financially. That's fine but for most people buying used is gonna be a much better choice but there are people like a vehicle that feels new. And that's why to me. The compromise has been historically a three model year old vehicle. So right now it'd would be twenty eighteen because the twenty one or what out on dealer lots now so when you buy a vehicle. That's three years old. As a general back of the envelope rule it will have lost roughly a third of its value some models substantially more than that others a little less but generally about a third of the value has been wiped out in those first three years even though the life of the vehicle is so today with vehicles running quarter million miles Not at all unusual. That's like normal now where it used to be hundred thousand miles pretty much. The expected reliable life span of a vehicle but vehicles vary a lot and quality and consumer reports has put out a recommended list of bike category. The most reliable vehicles you can buy depending on size. And i want to start with the most popular part of the vehicle market and these are the most reliable three-year-old suv's based on consumer reports deep dive research and again. These are all twenty eight teens. The honda cr v. honda hr v. The hyundai kona alexis annex the mazda. Five and the toyota highlander. So if you're interested in an suv. Those particular ones are the most reliable. Now when we talk about Cars mid size and large cars the most reliable eighteens the mazda six toyota avalon toyota. Camry accurate t. Lx and infiniti q fifty so people don't buy a lot of cars anymore they specially don't buy small cars. But i'll tell you the ones that are the most reliable small cars the chevy bolt. The honda fit the mazda three the toyota corolla and the toyota prius and the toyota prius c in addition the toyota prius prime. Could there be enough. Prius is on there and the volkswagen beetle so The only american owned company that made the list was chevy bolt but most of these other vehicles are actually manufactured in north america. Even if they're owned by quote unquote foreign automakers that a vehicle. That's very reliable. Starting you're looking at a vehicle that's very reliable is key but not enough. You want to do to other things you want to check the van to see if the vehicle has been in any major accident and it's time of ownership that the van research would show and then the other thing is a condition to purchase. You want to have that vehicle. Checked out by a mechanic of your choosing. I have a more thorough guide to how to pick a used vehicle and what steps you should go through on a used vehicle buying guide at clark dot com.
1.22.21 Clark Stinks; How to avoid losing your FSA funds
"You go to clark dot com slash clark stinks and if you feel that. I've given bad advice. Bad opinion. Bad information been incomplete Need my head examined. Whatever it is you can post there. And then producers krista and joel. Do we call people producers on podcasts. Sure well whatever. I'll answered anything okay. they go through your posts on kark stinks and share their favorites with you right here on the show. I should've never encourage to speak. I'm pretty stupid. Maybe maybe maybe you're right. All with a humbling. One for me. Dismiss a reassigned krista. She's either awkward or mean or just not on board her comment and your podcast. The quote was. That's why i'm still working for you. Look no further for why then that statement awkward mean or just not on board. Listen to how that came across in the podcast that you should have done this sooner man up. Nobody likes doing the difficult conversations. But that's how you maintain a decent product and that's from c. But not macy macro and write about myself. Clark yeah so. I'll just say i since this was about somebody said to you. I hope i didn't offend anyone saying that. I went back and listen to it because i appreciate feedback. Just like clark has taught me to clark stinks and I didn't mean. I'm just working for clark to just to make money. I meant that. I need to learn from you everyday. Clark and that's why love working with you and And i'm so grateful for this job so dismiss me if you must know you're okay you're good all right. Let's get to the next clark Please clark i know the expression bag job can be found on google but it sounds just so out of place. Why not want you to say quit your job. Like ninety nine percent of other people say. Save the bagging for groceries on a positive note. I am happy that you don't say surf the web as much as you used to thomas. Well i never thought about that. That's not a common expression to say bag your job and gets a clark expression a clark. Yeah okay all right well you see. I am wearing a grocery shirt. Today off your. What a burger sweat cert. And now you have on your legal t shirt and trying to remember. I don't remember who gave me legal shirt. Neither of you did. Did i did. Thanks now. i'm just kidding. I didn't love having it. Okay edward says thanks for all your help. These years one thing that bothers me though but speaking of stuff you wear is your reasoning for wearing a kirkland branded shirt around town. Don't you think costco has enough advertising in place to handle their business after all. Costco is a multibillion dollar. Multinational corporation enough of my brand is better than yours. I'm love kirkland signature. So here's the thing. Here's my obsession with kirkland signature costco. Because everything they do is about their employees in the member that costco sets out with every item. That where's the kirkland signature label to make something that is either a dentist made by the same company is makes the brand name or superior to the brand name but at a cheaper price in either case. I think they are been so Forthright about that's what car consider is about that. I am proud to wear Kirkland signature sweatshirt. i was so excited. When i got it which means i need a life doughnut. Here i am excited about my. What a burger sweatshirt. My kirkland signature sweatshirt and my legal t shirt. I'm like a walking billboard. Aren't i said that if i ever had my car wrapped with advertising for one of my favorite companies that they would never get in the car with me. I love how you'd always say to someone would ask you. What club do you belong to sam's club. That's my all right. This next one. Come from josh. He says you're doing your audience a huge disservice by talking about bitcoin or any crypto currency. Because you clearly don't understand the market and how it works. Understand is not the same as the typical financial world in which you made your money but your comments about bitcoin january fourteenth podcast episode. We're not accurate. You should either educate yourself more on the topic or just stay out of making comments on it all together. Thank you for your post on anytime. All through the years since bitcoin went into existence. I have upset the Bitcoin enthusiasts and the reason that you hear me talk with such negativity about bitcoin and other crypto currencies is the idea of having ledger based transactions is really a good idea. It reduces costs to move money around the world and it's a more efficient way the problem with where we are today with bitcoin in san mateo is they have not proven to be a stable value substitute for money. The enormous movements up and down hour by hour day by day
Free tax filing is open on the IRS website now
"One thing that is on some people's minds very much and other like really. You're talking about that already. Is doing your taxes for last year. So there's a divide with this people who were expecting money-back who've overpaid into the irs. Or maybe he do stimulus money that you're only going to get through your return or motivated to file their tax returns as quickly as they can other people who owe money wait. Wait till they file so if you are someone who tends to be an early feiler when it give you some good news and some bad news first. The good news. I arrest free file is up. An operative in irs dot up. What free file is is where you have an income under seventy two thousand dollars a year which includes most taxpayers. You are eligible to prepare and file your tax. Return for free if you go to. Irs dot gov move down the front screen a little bit kind of over to the right there. Are these boxes there. You'll see a box for free. File you click on that free file box and then it will take you to a variety of income tax preparation services. They will tell you. Will they do return in your state or not. And do they charge you for your state filing or both federal and state filings free state. If you live in a state of the state income tax and so you go ahead once you select who. You're going to use for tax preparation. Prepare your return or if you have a statement as well returns and then you click file and then that puts you in first position for on february twelfth when the irs will accept those electronic filings. And we'll put you at the front of the line for your refund as well now. There is a complication with refunds. This year that's the second time i've said complication right. There's another one and it involves the earned income tax credit Significant portion of people who are eligible for free file or also eligible for the earned income tax credit which is Way is referred to by economists as a negative income tax. That gives you money against your bill or even beyond your tax bill to encourage people to work and work more so the earned income tax credit has also been an area that's led to a lot of fraud so the irs is going to start processing returns on the twelfth but will hold back on doing the refunds till typically a couple weeks later after they process yours to go through a fraud detection software process to decide that you really are as best they can determine who you say you are and then your refund will come so because of the additional steps involved in the process if getting a refund is important to you you want to file your return as soon as you've got all your documentation your w. twos whatever and then know that it gets you earlier in the queue. Get you through the any fraud detection. And then we'll get you your refund. Sooner is the whole theory. The whole idea and the earned income tax credit. If you're like what is that. A lot of people particularly with kids qualify for don't know tax preparation software. Should pick up on whether or not you would be eligible individual or couple for the earned income tax credit and. That's leaving free money on the table if you are eligible and you overlook
1.20.21 Annuity options will soon be available in your 401k; As streaming prices rise, how you can pay less
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skater needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of post skating recovery. A heating pad visit bank of america dot com slash more rewarding to apply now copyright twenty twenty bank of america corporation. I'm so glad you joined us on today's edition of the card. howard podcasts. can our goal is simple. That's to empower you knowledge
Are You Underweight Chinese Stocks? Pros and Cons of Investing in China
"Are you under weight chinese stocks. Should you be. I recently got an email from a member of money for the rest of us. Plus he lives in switzerland but grew up in asia. He mentioned that he has been a long term investor in china as he analyzed his chinese equity investments in two thousand twenty. He noticed that they didn't fall. As much as stocks in other countries and the currency held its value relative to the us dollar. He went to look at his overall exposure to chinese trying to calibrate it within his per folio he noticed that relative to the size of the chinese economy which is the second largest in the world that he was underweight chinese stocks in fact the major stock indices. Msci all country world index has five point two percent in china yet. China's gross domestic product the monetary value of their output is over sixteen percent of global. Gdp trying to figure out. Well what should his weight be. He's primarily getting his performance through an a-share etf china a-shares our stock shares that trade on mainland china and trade in the local chinese currency the lon new trade on the shanghai stock exchange and the shenzhen stock exchange historically these chinese a-shares are only available to domestic investors but since two thousand three china has allowed certain institutional investors to acquire license to be able to purchase some of these chinese a share stocks for example back in two thousand fifteen vanguard. Was i allowed to buy these chinese a-shares stocks up to one point five billion dollars. It was at that time. They added chinese. A shares to their emerging market stocks index fund and etf trading nature's has typically been dominated by local chinese investors and returns have been volatile in twenty twenty though they gained forty one percent incredible performance. It was the result of the chinese economy performing better than any developed or developing economy in the world in two thousand twenty in this episode. We're going to look at. What should our weight be in china in our stock portfolio. There's definitely some pros and cons to investing in china and that's what this member was trying to figure out what what what should his weight be in. China been twenty twenty. The chinese economy officially grew two point three percent some of its weakest annual rate of growth. But the best in the world. now there's always some controversy regarding how accurate are the official economic statistics in china. I subscribe to capital economics which produces something called the china activity proxy and it's an estimate of economic growth using different metrics that they have much more confidence in and they show that the economy grew close to seven percent in the fourth quarter from four point nine percent in the third quarter. This is on a basis chinese. gdp it's gross domestic product the measure of what it produces its output of goods and services has been growing faster than many areas around the world for over a decade and as a result. The chinese economy is getting to be a larger percentage of overall global gdp in china. And this is data from. Moody's referenced an article in the wall street journal. China in two thousand ten made up ten percent of world. Gdp us in two thousand. Ten was twenty three point two percent of global. Gdp at the end of two thousand twenty. China had grown to sixteen point eight percent of global gdp while the us has shrunk to twenty two point two percent so china at its six percentage points. The us lost one percent. As i mentioned the chinese economy grew in twenty twenty and one reason it grew was because of americans that were stuck in their homes. And we're able to travel and go out to eat. And instead bought goods off. Amazon and other stores and as a result exports from china surged in november chinese exports grew twenty one point one percent compared to the prior month and exports to the. Us grew forty six percent. Despite all the trade war rhetoric new tariffs individuals. Continue to purchase things that were made in china and many. Us companies continue to make a lot of their things in china. That growth in exports certainly helped the chinese economy. The other thing that helped the chinese economy cover is day to day. Life has generally returned to normal. The country was able to better control the coronavirus and as a result people are back driving their cars. They're taking public transportation china's not kobe. Free this past week on one day the recorded two hundred and ten new covert cases the highest since march but only two hundred and ten compared to the thousands and thousands of new covid cases confirmed each day in the us. The chinese economy has rebounded because all that manufacturing of those exports has allowed migrant workers which make up about a third of the workforce to take their jobs again. So incomes are growing in china and they're also benefiting because during the early months of the pandemic the chinese increase the amount that they're saving chinese households. Increase your savings rate. Now there appear more willing to spend that savings on buying goods and services and that has helped propel the chinese economy forward.
What a Year! What Should You Do Now?!
"Me. Rob broke camp episode. We're joined by eddie cross. It's molly fulls chief investment officer. We're gonna talk about the year that was and the year that lies ahead and some investing advice should be fun. All right more on this week's episode of multiple. What is up albro. eddie cross. The chief investment officer of the motley fool is gonna join us later on the show to talk about pudding twenty twenty in perspective as an investor. So i thought it might help if we just take a quick look back at the year. Remember some of the highs and lows. So i've cobbled together from a few sources including Visual capital capitalists cnn cbs Just all the news sources. So because it's i forgot that a lot of these things happened in the last twelve months. Oddly enough so here we go in january. We were too busy being horrified by images of australia. Inflames to pay much mind to the pandemic that was brewing. In china the fires in new south wales raged on for nearly eighty days displacing or killing nearly three billion animals. Goodness i know also kobe. Bryant along with his daughter and five others tragically died in a helicopter crash on their way to a youth basketball tournament. That feels like a really does anyway. All right in february trump was impeached for the first time and eventually acquitted by the senate of charges of abuse of power and obstruction of congress. Meanwhile covid nineteen continued to spread while we may never know the name of patient zero in march. We learned about south korea's patient thirty one and the devastating effects of a superspreader. One person spread the virus to as many as one thousand one hundred and sixty fellow koreans off to the races by which i mean. Just starting to get an inkling that things could get really bad because in march the s&p five hundred rates over a third of its value and under a month the fastest thirty percent decline ever recorded on the benchmark index. I'm just now learning that some genius coined the phrase beach stocks. I cannot believe. I have not been using this all year. Beach stocks booking entertainment airlines cruises casinos and hotels. I could have been saying beach stocks this. I've never heard about until now either genius all right well. It sad because beach stocks were hardest. Hit losing actually. You could say reach stocks and then get restaurants in there to be true so all right. We'll we'll see them in under entertainment all right. Each or breach stocks lost three hundred thirty two billion in value. In one month things here kind of become a blur personally because everyone was just like baking bread pondering the next case scenarios if they ran out of toilet papers doom scrolling. There was lots of talk about flattening the curve. Dr fauci became a celebrity as it. Dr deborah brooks is many scarves in april we began to see the devastation of the pandemic in the job market.
1.18.21 How to file your taxes for FREE; The best online banks you should consider having an account with
"With us on today's podcast. The clark howard show and i know it's weird but tax season is about to start again when last tax season didn't end until october fifteenth because of the pandemic and it's possible as we move into twenty one. This year's tax deadline will migrate. Some is well. I doubt all the way till october. Who knows There are a lot of people who have specific reasons that they liked to file their taxes really early. And if you are one of those usually the reason you file early is because you have a pretty simple tax situation and do a refund Usually those two in combination. Because you want your money right well. I wanna talk about some money. That people can may qualify for that. A huge number of people don't even know about and it's something known as the e. I. t. c. The earned income tax credit. The earned income tax credit is something specifically designed for people who have kids or make a lower income and you could be one of the eligible people who were who can get the earned income tax credit Typical tax credit is more than three thousand dollars. That you get and this is. What's refundable credit. Even if you did not oh any tax based on what your income was you still may be eligible for the credit the idea of the credit and the reason it exists is there are points in income that people are at where staying at home and not working could be as appealing as working so the earned income tax credit. What originally was Looked at as a negative income tax. Was what it was originally talked about all the way back in the nineteen sixties that. What emerged from that. Is the earned income tax credit. The earned income tax credit is very easy to file for.
1.15.21 Why some borrowers are missing out on student loan forgiveness; Clark Stinks
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skater needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of post skating recovery. A heating pad visit bank of america dot com slash awarding to apply now copyright twenty twenty bank of america corporation. Glad you're with us on today's podcast. And i want you to know that on the clark howard show. The idea is simple. It's to keep you advice information that helps you take more control of your wallet and one area that
1.14.21 The jobs recovery has stalled out; Clark's take on Bitcoin's volatile ride
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skater needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of post skating recovery. A heating pad visit bank of america dot com slash rewarding to apply now copyright twenty twenty bank of america corporation. Right to have you here on the podcast. And i want to know something you i answer questions you posted for me at clark dot com slash. Ask also want you to know that you can get individualized one on one advice from our team. Clark consumer action center and we've had to pivot hard. How we provide the free advice to you away from the show itself with us having to work remotely and we have had to change the phone number.
Can Robocalls Be Stopped?
"Right now. I wanna talk about the giant foam calls that are a curse for so many of us. And did you know that the feds at the there's an obscure agency called the fcc federal communications commission that It's obscure enough. It's amazing how many people find their way to complain to the fcc about all the junk phone calls they get and more than any other topic they ever get complaints about so now the fcc has issued yet another rule to try to crack down on all the phone calls and now trying to compel the nation's major phone companies to actually help because one of the dirty little secrets about it is there are ways. They profit from all the phone calls and now they're under a federal order to do things to limit the number jumped phone calls. You get but they're still going to continue. I mean how many times do you get that junk phone call about how your warranties expired on your car and you need to buy this that or the other piece of garbage fake extended warranty on your vehicle and the giant phone calls go on and on and on and on and you think about how many junk phone calls that. People got in twenty twenty from political campaigns. Those are protected speech. Those will continue when we get into our next election cycle. That thank goodness isn't till next year. Had enough of that right. actually. I say next year. Yeah next year. We're back in another political season. But for the meantime those will slow down but the other ones. It'll be a while before it's really clear if the new federal initiative reduces the number of junk phone calls you get but there are more and more tools to help you with that
Saving big on monthly expenses in 2021 + The high cost of food delivery
"You finally decided to learn how to ice skate. So you ordered the essentials. Every ice skater needs a pair of blades. A new helmet and a good set of kneepads. And you used your bank of america. Cash rewards credit card choosing to earn three percent cashback on online shopping rewards that you put towards the cost of an essential piece of post skating recovery. A heating pad visit bank of america dot com slash rewarding to apply now copyright twenty twenty bank of america corporation. I'm so excited to welcome you here to this edition of the card. Howard podcasts. where. I'm getting you back to basics and how you take charge of your life how you take control of that wallet of yours and
Invest Your Time Like an Owner | HomeTeam Case Study
"Hey al jeff woods here before we get into the episode. We wanted to let you know that we are expanding our team and we wanted to reach out to you first as part of our community Toward the end of last year. I did an ad for. Vp of operations. Believe it or not. He was listening to the episode and he applied and we hired him. So we know this works. So if you happen to be a marketing rockstar. We would love to talk to you. We are looking for growth marketing specialist. This person's twenty percent will be the following three things first. They need to be able to build an execute marketing plans that achieve specific results. So if we say hey. We're launching goal setting retreat. They're gonna come up with the plan. They're going to execute the plan. They're gonna own the results second. They have to be able to create marketing systems including automations funnels that delivering on brand experience. We are not just looking for somebody who drives conversion we want somebody that can create an on brand experience inviting. This person is going to be responsible for the growth of our email database as well as our customer base. If this sounds like you if you believe you can step in and do these three things and extraordinarily high level. Please go to the one thing dot com slash talent. And if you're not that person but you might know this person please. Share the one thing dot com slash talent with them as well. That's the one thing dot com with the number one in the url the one thing dot com slash talent. Nothing would make us happier than to bring another person on from this community. This is the one thing podcast where we teach you the surprisingly simple truth behind extraordinary results. I'm your host jeff. What's we are in the business of time. It's our most valuable resource. Ask anybody what's more valuable time or money. Which is time. here's the problem though. Most people go through their days spending their time. That's because we were never taught how to invest it everything that we do. Whether it's on this podcast whether it's in our trainings or with the companies that we work with it's all about helping you better invest your time so that you can achieve extraordinary results. Now you invest. Your time varies depending on what you do professionally. It also can have a massive shift when you go from employees to being an owner. Today's episode is a case study of how one organization that we have worked with over. The past year started using the principles of the one thing to help their franchise owners start thinking and investing their time like owners. The three people you're gonna meet are on the leadership team of a home inspection company called home team and one of their biggest challenges is when someone buys a home team franchise. They are buying models for a business yet. Most of the people who have purchased these franchises have never been business owners. They've never had sales training. They've been traditional employees and all of a sudden they don't have a boss telling them what to do their own boss and realize that i actually have complete control over my time and so if i can do anything how do i invest it and if i can do anything. How do i make sure that. I'm not spending my time and that i'm investing it with the expectation of a return as you. Listen to the episode. Pay attention to how they use really simple models of the one thing like the four one one a tool that gives you clarity on the priority or something like a one thing planner to help these people understand. These are the handful of things. I need to do each day. But if i just knock those dominoes down will automatically put me on track forgetting to wear. I wanna go. If you'd like to learn more about how we work with organizations you can go to the one thing dot com slash training. If you scroll down there's a whole corporate section. If you just fill out any of those forms you'll end up getting on the phone with someone on our team and we can walk you through it a little bit more with that. Let's get into this conversation with buddy. Chris and james from hunting guys have been looking forward to this conversation for some context. Buddy you're the director of operations for home team and chris and james. The two of you are business coaches inside the organization and the three of you. Your job is to when you have franchise owners. Your job is to help them get on motto models that you've provided them for success so that they can have great businesses buddy. I'm curious how did you first come across. The one thing we were attending the family reunion for keller williams as a national preferred vendor and throughout the entire show i was introduced to people and someone introduced me to jeff and he asked me to come and see his session with him in j. patterson and adam long and i went over and and listen to that session for a bit. And then so. That was our first introduction to it. I'm curious what went through your mind when you her. Janai talking about the principles of the one thing. Well what went through my mind. Was you know this program is something that must work a. They're here in front of entire keller-williams world they have the backing of gary keller himself and so it must be something worth listening to and then i realized that we do things a inside our company that sorta mayor of this in a way but it didn't have the structure that this had and it didn't have the credibility that this has so. That's what made me start thinking about it. Let's talk a little bit about your business. Home team is a franchise organization. You do home inspections. James help us understand. What's the biggest challenge. Your franchisees have when it comes to getting into the business and managing their time really. It's a it's a. it's a mindset challenge which initially we had thought you know we've been at this a while now over thirty years. Initially it was like do we do. We just need to teach them how to be a good inspector but as time develops we realized. There's this whole other rest of your life that goes around that core discipline and it was this all this core area around your life all your culture that went around that core discipline that was preventing us from really moving the needle on how fast these businesses would start and how healthy those businesses would be and it was you know it was that coming to that awareness as we were rebuilding our training system and trying to get people stronger faster more reliable starts and a legacy that they could hand off to someone where we realize woah. Whoa we need to step back and we need to deal with taking people. That don't know how to think. Like an owner and change their fundamental assumptions about how the universe works because most people have lived their entire life working for boss. And there's a whole lot of unspoken assumptions that go into that whole environment that are suddenly ripped away from you when you step out on your own businessman and that's where the one thing stuff really helped us accelerate that mind change for our folks because we went from teaching our business operations model to teach in a way of thinking about life Including how to use an invest your time and it's when we took that step back that we could really see a change in the way people actually started taking action in their own lives. You're you're saying something interesting. James and chris i want to dive in on this with you because we have so many people who listen to this podcast. Who are currently employees interested in starting their own thing. One day they have not yet experienced how their focus and behavior needs to shift when you go from being an employee to being an owner. Walk us through that absolutely jeff. That's probably the or the number one things we run into is often people see someone who owns a business and i only see the results but they don't understand what it took to get there
Ask HTM - Are We Ready to Buy a House, Joint Brokerage Account Benefits, and Travel Rewards or Cashback Credit Cards #310
"Managing your money has typically been complicated time consuming and just another reason to bite your nails but this year. You don't need to reinvent yourself. Every day is a chance to build your future and one finance wants to help you keep building on what started last year. And the year before that we've been fans for for awhile and it's unmatched automation tools. Make reaching your financial goals easier than ever. Yeah last year invest a pedia named him one the number one for sophisticated investors and low-cost investing visit in one finance dot com slash. How to money to sign up and get thirty dollars to invest terms and conditions apply qualcomm. We believe in staying connected and you can see us wherever five g is helping transform telemedicine supporting remote education empowering mobile. Pc's the invention ages here. Learn more at qualcomm dot com slash invention age. Welcome to how the money i'm joel into. I m matt in today. We are answering your listener questions. Yeah joe. it's one of these every
1417: Yes, You Can Actually Save Too Much for Retirement by Robert Farrington of The College Investor
"This is optimal finance daily episode. Fourteen seventeen yes. You can actually save too much for retirement by robert farrington of the college investor dot com. And i'm your host and personal finance enthusiast diana mariam. This is the show where i re- to you from the best personal finance blogs on the web with the author's permission of course things to anger for hosting this podcast anchor is the easiest way to make podcast the distributor podcast for you. So can be heard everywhere. Spotify apple podcasts. Google podcasts and many more you can easily make money from your podcast to with no minimum listenership anchor gives you everything you need in one place for free which you can use right from your phone or computer creation tools. Allow you to record and edit your podcast so it sounds great. Download the anchor app or go to anchor dot. Fm to get started for now. Let's get right to today's post as we optimize your life. Yes you can actually save too much for retirement by robert farrington of the college investor dot com. You've heard the saying every personal finance. Pundit max out your ira year and contribute to your 401k to the maximum and all of these are great tips to some extent but depending on your personal goals you could be saving too much for retirement. Yes there is such a thing as saving too much for retirement. Let's take a look at what's saving too much for retirement. Looks like and how you should put together a better plan based on your personal goals. What saving too much for retirement looks like saving for retirement. Comes down to a simple issue. Saving for retirement involves using accounts like iras and four one ks that our tax deferred until you reach retirement
20VC: Evernote & mmhmm Founder Phil Libin on Why We are Beginning a Multi-Trillion Dollar Restructuring of the World, Why Shortcuts are the Biggest Mistakes Startups Make & The Future of Video and The Unbundling of Zoom
"Rom including as leap row founders fund and more to join the revolution of saving time and money with rump. Head over to ramp dot com. That is quite enough of these dulcet british tones. I'm thrilled hand david. Philip been found on c. odd Have now arrived at your destination. Fill it is great to have you on the show. Thank you so much for joining. My dulcet british. Titans once again. Thank you harry. Great to be back on. Ideally kickoff off and for those that maybe missed on first apps. Tell me how did you make your way into the world of startups in the. How did you come to found Well this is my fifth. Start up. And i guess i started my first company back in nineteen ninety seven one of the first dot com companies. We build stuff for the internet. We're kind of doing it ever since. I never really intended to do any of these things. Don't like self identify as an entrepreneur. Just keeps happening some reason. What was the finding by. V with Well it was basically. I think we started this. May and so. It was already a few months into the lockdown into the pandemic and we were all just sitting around living on video and finding that to be pretty dreary and just. I was just goofing around. It'd been started as a joke just as a way to make our life on video a little bit less boring. So he just started goofing around with background pictures and things you can do a zoom pretty soon. It became a product. Yeah no totally. And i remember the first few months were pretty terrible. Tell me i wanna start with two points. Really as you mentioned the the fifth company with now and so it's like what fundamentally what avenue of which is kind of the most famous but the program you take him with you And university rome with today. A lot of that will ever know a lot of people. A lot of the early evernote crew is we're still together for for alternatives. And that's the main thing right. It all comes down to the team in the people in the super lucky to still be in the same orbit as a bunch of these these folks and then there's the thing that we did it ever note that What is the secret to such high retention as you said that you know people move around safely they say. What do you think's the secret to retaining in maintaining that incredible team so long. I've just tried really hard to stick around with all these people right. I don't really see myself as the central convener of it. It's kind of the opposite. I'm just trying to like make sure i still get to work with as many really talented people as possible wind up together. It isn't so much about like actively thinking about assembling a team of these in the beginning it's really just about You know who are the best people that i know and What can we do together. and you know. We'll let me work with him again. So i love that kind of almost informal gathering blazing structure around it. Because you know you've raise the thirty one million dollar round. Recently with the skating of funds and skating lend is enough to get from social gathering informal incredibly talented people to a much more credit higher. All who is asian or much more stretched open isolation yes structured not necessarily radical but structured. Really fast especially around hiring. One of the many things that are wrong with startups is startups are all about shortcuts. All of the incentives take as many shortcuts. As you can the big shortcut that you can take is retiring france and this is a really fast way to get started but it's ultimately think pretty damaging to to company into into society in general figuring out how to be more disciplined around around hiring around retention is really a day one thing so we've tried to be the one of the founding principles of behind turtles band the product studio that came out of that we we take the team building very seriously so yeah we have all sorts of processes in place to try to get good outcome straight and make sure that we can keep working with people that we know really fantastic. But we're always looking for new people who are outside of our our social networks outside of our connections and we have to make sure that we are working with people who aren't just our friends and people who went to college with what has been the most effective that like should we go into colleges to sponsored events. How should we really expand on. That wasn't get the most time to people in in terms of light Person sees insights. That you have from signing net. What was what you spend money on it. I mean for businesses. You pretty much all comes down to the same tool which is money. So if you're not spending money on it you're not serious about it. So we spend money on recruiters in we specifically tell recruiters that we are paying money to send us people that are outside of our comfort zones and outside of our network because we know plenty of middle aged white dudes and so there's going to be no shortage of just people that i went to college with people that i'm friends with like they're all going to be in the network anyway. We're talking to all these people so we're gonna pay recruiters above and beyond that we specifically want to pay recruiters to send us candidates that we wouldn't otherwise be seeing it works. You know it's a business you pay money you get good service in terms of you mentioned shortcuts that being so paramount in big mistake. Lotta solid state. Why do you think startups made sure caught so often that you've been on by the vc side and found aside now multiple multiple times on the found aside. I kind of been the vc mobile. Maybe like how do you think about the reasoning behind the shortcuts. Your fault it's definitely definitely the vc's i mean you. You are still do some investing. Yeah now we made this industry. Yeah i think the incentives look think about the startup incentive. Right it the the incentives are when you're investing especially early stage investing just like me. You're not looking for things that are likely to succeed right. You're looking for things that have a plausible chance of succeeding. Even use chance but that if it does succeed it's going to be massive made. And so all of the incentives lined up for deploy money as much as you can sometimes once your funds get bigger and bigger and deployment of things. That are either gonna fail quickly because the last thing. Abc wants us to hang around. He perpetually stalled a startup or succeed massively quickly and even if the you know the chances of success you don't have to believe when you make an investment you don't have to believe that it's ninety percent likely chance of success you know depending on the stage maybe think it's only two percent likely or ten percent or thirty percent or whatever and so all of those incentives are go fast break things
Are You Letting Fear of the Future Cost You Now?
"Coming up on the next show. I'm going to share with you an article. That is i opening. It talks about how people were making a hundred thousand dollars are fearful that they're never going to be able to retire. And i had a b. i. p. that emailed and she's terrified she's worried about the gross domestic product that the government's printing money. She wants to know what to do so. I'm going to give her a clear pyatt. Stay to welcome to the chris oaken show home of everyday millionaires. I am chris. Hogan your host. The ip's this is your show where your life and your money take center stage and never forget that it is your life. You gotta take charge while i'm excited to be back with you. We have got a fantastic show lined up. We have people that have real questions And real situations and as we are in the month of january it is really important for us to make sure that. Are we staying on track with our goals right. Are we staying on the path because you said you were serious about something and you made that decision. I wanna make sure to encourage you to get back right. Don't lose track. There's all kinds of stuff going on out in the peripheral out in the world. There's all kinds of stuff happening but what you have to do internally stay focus and make a decision it's really really important It's so easy to get distracted. It's so easy to get thrown off track. But we gotta be routed. We're gonna come back. You gotta stay prayed up and focused and ready and truly to chase down progress. And as i said don't chase it down. Just look at it right on ono. I want you to get ready to grab it with both hands. So you can move forward in your life well as always We're going to kick off with an article. Because i love sharing information with you and this was sent in by david a vip and david thank you so much for taking the time to send in this article And this one is kinda sobering because most people believe that. Hey if i make more. I can do more right. I i know that. And i i used to have that mentality way back in the day that if i could get my income up then i could make more progress. Well here's my problem. I didn't have a plan. And this is pre ramsey solutions. But just having that mindset of jason and growing income really without making progress. And if you think about that that's a loop that you can get on and you're really not getting anywhere and it's frustrating irritating especially this time of year as you get your w. two or if you're self-employed you're k. One and you start to look to see how much money has actually come through your hands and looking at this. I think it's important Because i think that the average income right now is hovering around fifty eight sixty two thousand a year and so we gotta have a plan and this article goes to approve that very thing here. It is according to this motley fool. According to this article half of americans with incomes of over a hundred thousand dollars fear that they'll never retire. Oh this is much higher than the average income and so looking at this. It's a very sobering. Statistic according to Eshelman financial engines fifty percent of us adults age forty to sixty five with an annual household. Income of one. hundred thousand. Dollars are worried that they'll never be able to retire now. All this boils down to a bigger income does not always equal better financial decisions. I'll say that again. A bigger income does not always equal better financial decisions and fact our research team here at ramsey solutions learned that has household incomes increase so does consumer debt. Whoa see we still have that mindset of debt being a tool right when you come in before you'll know better and so if you haven't changed that mindset or if you haven't shifted that paradigm as your income grow so does the credit card debt So does the car debt and things just keep going up up and the next thing you know where you're still essentially living the same way so we did the largest research study that's ever been done in the book everyday. Millionaires were talked over. Ten thousand of them okay. So we didn't get what some people call just an opinion. What we got was fact when you talk over ten thousand all across the country and what we learned is a third of the millionaires that we talked to a third. They didn't have household incomes of six figures. Let me say that again. A third of the millionaires that we that we talked to in our study didn't make six figures bet means if both people were working combined they didn't make six figures they did make a hundred thousand dollars yet they still became everyday millionaires so the mindset of income being bigger does not always mean that financial progress will be better. It boils down to really starting where you are in having a plan managing your monies about behavior much more than it is about math ever and so if you're afraid because let's hear this i think we hear these words fear and afraid especially when it comes to articles and we blow right by it like we're not hearing it. I don't. I don't blow right by statistics anymore right. I don't blow right by words anymore. You read this and you go afraid. Fearful you think about that. And that's something that that's a deep emotional feeling. That's something that strikes at the core of you. It could be something that is bothering you. Twenty three hours out of the day. Well you sleep a little bit. I presume but if you go to bed with it on your mind you wake up with it on your mind so looking at this. If you're afraid that you'll never be able to retire here are some changes to make And as always we'll put a link to this show knows but i. I wanna give people a proactive things to do. So fear and being afraid can begin to lose its grip because if that has a grip on you then hope and possibility doesn't and so i wanna let go of fear by being proactive. So first thing to do is identify when expense the cut back on that. I mean if you got one hundred if you're making one hundred thousand dollars and you're not contributing to retirement you've got what's called a situation because you're making above way above the average income and so what we have to do is get really intentional. Figure out where your money is going. Get your bank statements. Sit down look at it highlighted and adjust your spending because your future is just much too important. I did this. You all have heard me talk about the grocery budget. Okay i talked about it. Okay and went in depth in it if you saw the reset event and talking about just what. I was spending
Should We Keep Paying Off Our Student Loans if Congress Is Going To Forgive Them?
"It's monday and this is the ramsey call of the day part of the ramsey networks. Joining me today is ramsey personality. Anthony o'neill dave our question comes from. Dj and tennessee. My husband and i had sixteen thousand dollars in student loans when he graduated two years ago. And now we only have eight thousand dollars left. I love it We have been paying even during the moratorium to pay down the principal so we are ahead of payments by quite a bit awesome. We are reading in the news at congress might write off ten thousand dollars of everyone's through the loan debt. Should we keep paying to take advantage of the no interest at this time or stop paying and wait to see what they will do. If you're going to wait to see if the congress is going to do something you are going to be disappointed I'm not saying one hundred percent guarantee it won't happen but here's the think In my history. I've never seen it. So if i was in your shoes i'm paying it off. I'm not stopping. I'm not waiting for the congress. If you wait on washington to fix your life your lifestyle he's gonna suck. This is a good rule. So i don't know what's going to happen with this. I mean Have no idea. There's no way of knowing. I was pretty sure. A few months ago by the political climate has shifted and the power structure has shifted. And so it's possible that they run this through. I don't know. I never dreamed i would see my lifetime but i've seen a whole lot of stuff in my lifetime. I never dreamed. I was sitting right so I don't i if i were in your shoes. I agree i. Because i'm not gonna wait to fix my life on washington to save me right and so it's It's just a bad plan. I and again. They may turn around the in the summer. And you may go. Hate dave ramsey. Dis- cost me ten grand By anna hey anthony o'neill not to be on the same list. Generally this is real this. This is my suggestion. I agree with you either way. Pay it off to listen folks. I'm i'm gonna tell you pay off your loans right. We're just always gonna tell you. Take you have to control the controllables. Let me tell you what you can't control congress. You can't control the president and you what you can control is paying off the loan. So control the controllables and build you a life and that's your best plan so now let me ask you this question dave. I think i know your answer. But it's fair to ask it. So what if they say you know what since there's no interest what if i just put that money to the sar for the next four months while there is no interest. I'm just not gonna try to game the system every time people try to came stuff is when they get screwed and it's when it doesn't work out for him and so what. Let me tell you what would happen. Some percentage of the time we throw ten thousand dollars in an account. We're sitting around aden. We really hadn't been aggressive paying off student loan. We let her foot off the gas. We're not really budgeting tight and man. I sure didn't need that bass boat cruel go by the bass boat. Congress says you know what we can't get that student loan thing through and you're still sitting there staring at a dadgum paid for bass boat right with your money. You should use to pay off your student loan. This is what happens. Then you end up in coaching one of our coaching office. Somewhere and people are going. You did what. And you're going yano also stupid and we all have these moments where we did something but it always comes around trying to scam scheme trying to trying to run the system. Somehow i'm gonna run the system. I'm gonna i'm gonna beat the system and don't beat the system pails death just don't there's no shortcuts any places worth going. Thanks for tuning into the ramsey call of the day.