S6 E12 - This is how to get (financially) healthy

Automatic TRANSCRIPT

Your housing your food your transportation and then medical and absolute necessities so if you have prescriptions or you've had doctor's appointments or you absolutely have to have daycare because you don't have family or friends that can watch and you have to pay for daycare. Those are absolute necessities. Everything else is extra fluff lifestyle spending. So when you're going through and figuring everything out these four things need to be taken care of welcome to another episode of the we serve now. What podcast the show. Where i do my best to answer the questions veterans and their families are already asking so you can make your post military life your best life. My name is aaron perkins. I'm a us army combat veteran husband to a beautiful wife. Daddy to amazing kiddos. I'm the author of the resolve book and that is a step by step guide. That takes you the veteran through a process of rediscovering. Your life's purpose. After you left the military. And i gotta tell you i have so been looking forward to today's episode because my special guest is here to talk about something that matters to every single one of us is topic money. My guest today is quite boss. Marco is a twelve year navy veteran who deployed in support of operation enduring freedom. He got out got his bachelor of science. Degree started a side gig as a financial coach in two thousand sixteen while working in the nonprofit industry in didn't take marco long to realize that he was struggling with a lot of the same financial issues as the people. He was trying to help so in an attempt to fix his own struggles. Marco applied business cash flow principles to his own finances with an eighteen months. He added nearly one hundred thousand dollars to his net worth and his skills are skills that anyone can use. Marco now has his own financial consulting business. Called live like others. can't marco. it is so good to have you on the show today. Welcome to we serve now. What a thanks for having me on. It's pleasure to be here to serve all the rest of the veterans. They're listening absolutely man absolutely. Been looking forward to have you on the show. So what just take a few minutes and introduce yourself. Tell us a little bit of your back story how you got here. Well you covered a lot of it which was great but like it said so. I served twelve years of military. And when i got out i had a mountain of debt. I think it was like sixty thousand dollars in debt. When i left active duty was going to school got my bachelor business management and when moved down to florida a job. They're kinda help me pay down some more of The debt that ended up having once i got back from afghanistan. 'cause so side note. I went to afghan volunteer to to afghanistan to pay off my consumer debt and paid off the debt and then had a ton of money when i got back and did some investments that were really great but the problem was is. I didn't change my spending habits and some other habits. That i had that were really ingrained so i ended up building up that data again and was down in florida before i moved back home to ohio i ended up with like it probably about another twenty grand worth of debt when i moved back home and i was like said twenty twenty sixteen. I started looking at my personal finances. I got married in two thousand fifteen and after a year of trying to manage to all that we finally got everything into really like one pot start applying the business finance principles to my own personal finances and when i first started i was negative. Twenty five thousand dollars in my net worth so because all everything and i still wanna own twenty five thousand dollars so when i started applying some of those principles and turned it around and it was like oh my gosh in eighteen months be able to get to seventy five thousand and net worth. It was not so. I started taking some of those same principles and teaching some people. I knew some friends. And it's like okay. I really got something here but was really interesting. Is that these same principles basic math principles but these are the same things that have teaching the low income. People that for the nonprofit that i was working at so is really crazy that. There's so much parallel. The only difference is that my mistakes were spectacular because there is a larger amount of income to work with so it's it's really interesting the mindset that we don't teach so i that's what it was like. Okay there's a group of people working in the nonprofit world and the rule low income side of things. There's a whole support system around that but there's very few supports for this this middle class. The wealthy know how to do it. The low income have a ton of support. And when you're trying to make that transition to from low income or even the lower middle-class into an upper middle class even making that transition if you don't have some the fundamentals You're never gonna make it or it's gonna take forever by the time you retire like oh okay now i get. It would have been great thirty years ago. Sure so that's why i got into. That's what i got into being a coach. Cool man all right. So so the first question i have for you is it. It's a simple one. But i think it's one of those things that needs to be addressed because a lot of us find ourselves in a situation where we think that our finances are kind of like a bygone conclusion. You know i grew up in poverty. You know song going to stay in poverty. And so i don't even think about i. Just go through the motions. I you know. I get the car loan. I get credit cards. I get in debt. You know i do all these sayings in. I'm not really focused on my financial health right so when it comes to finances why should i even care. How big of a deal is it. Well i would have to say just starting out. It's actually perfect timing because this last year taught all of us. I mean how many people lost their jobs or were furloughed or laid off and maybe two never even get them back. It can come at any time. And if you're not prepared for it is what a lot of people don't realize is that when they signed their name for alone they're trading future time for something right now and it takes a special type of person to be an entrepreneur to be to be able to go out and create wealth but the majority of americans work for their money as opposed to creating their money. If that makes sense and there's nothing wrong with that. There's nothing wrong going to work and and working a nine to five job you can be in everyday millionaire working a nine to five job you can. It's entirely possible but it's just. It's really crazy that when when wrenches thrown into it that we lose traction so fast if thing was like bank rate. It's on the ads that you've been running for me so it's six hundred ten. Ten people don't budget seven ten barely budget. An eight out of ten are living paycheck to paycheck. It's it's crazy as stupid number. Eighty percent of the people in the us are living paycheck to paycheck. That's nuts. That really is so eight out of ten people living paycheck to paycheck. Just you know if if you miss a paycheck or like you just mentioned you lose your job because of whatever reason pandemic or anything else. It's a huge impact. Not just. I don't know how i'm gonna pay bills for the next couple of weeks but it can like really really set you back. I think it's a perfect setup to talk about. What you just mentioned budgeting a little bit right. A lot of people don't budget so let's say for example. I know what a budget is. You know i've heard the term of. I've seen it on the news talk about but i've never tried it for me and for my family. Can you give us an insight into that. Like where do you even get started. Well sure an you can do a search on the internet for how i do a budget and almost all of them are going to give you the first piece of bad advice that you will ever hear when it comes to budgeting track your expenses for the next month. No you don't have to track your expenses for the next month. You know why because what you do. This month is the exact same thing he did last month. Just pull your bank statements. Look at your bank statements. That will is a great snapshot of your personal financial behavior and what your lifestyle choices are and when you take a look at that then you've got you've got gotta place all of those into a it or as we'll talk a little bit here a of a wall for foundation. There are four things that you have to take care of everything else is fluff and you can create whatever whatever other buckets you wine or i mean flake from an accounting. Were coming perspective. These are lineups okay. So you've got you've got your income and your expenses and then your expenses or all of your line break it down and then it breaks down even further when you file your taxes so every category that you make is a line item but there's four that are super important. Four and a lot of the times people tried to budget everything and they say okay budget down every last dollar and even the even the dollars that you're gonna put into savings if you don't have a good foundation to take care of the basic things that you need to have. It doesn't matter what you put into savings. It doesn't matter what what you spend on clothes. It doesn't excuse me it doesn't matter what what extra expenses and entertainment things that you wanna do. You've got to have these four things. Take care of i and what's interesting about them. Is it lines up. Perfectly with maslow's hierarchy and i'll leave it at that for further on all right so talk to us a little bit more about the four walls right. You mentioned the four walls and you know unite chatted about these a little bit before we go kind of hit the record button here as we were preparing for the show but that i'd never heard that term before the four walls. Can you explain like what those four walls are shirt. A quick back story on on the four walls. Is that if you do any personal financial searching on the internet. You're probably gonna come across the name. Dave ramsey dave ramsey. Oh yes some guy of phenomenal mindset really. Is there some things. Because i'm a business guy. There's some things that i can't entirely subscribe to because for me personally. There is some good debt. Because i'm a business guy. I used other people's money to make more money for my business. So that i can go ahead and potentially hire somebody in sure. Grow the economy that right right so for me. There is some good data. But from dave ramsey's perspective. There's no debt is good so the four walls are the four basic things that you need to survive. And when i say talking about maslow's hierarchy the bottom two levels of maslow's hierarchy pyramid are psychological and safety and that deals with food shelter and essentially money and i clued transportation in that because you need transportation get to and from work sir so the four walls are actually order. I it's it's your housing your food your transportation and then i. I don't like saying catch off for this last one but medical and other absolute necessities. So if you have prescriptions or you've had doctor's appointments or you absolutely have to have daycare 'cause you don't have family or friends that can watch and you have to pay for daycare. Those are absolute necessities. Everything else is extra fluff lifestyle. Spending this is still considered lifestyle spending as well but this is your baseline lifestyle. So when you're going through and figuring everything out these four things need to be taken care of and as you're going through the math and figure out okay. I'm not bringing in enough to cover the us basic four things. you're living to lavishly. You have played into the game of catching up with the joneses. You're trying to find too many influencers and live like them and showcase to the world. What all the amount of debt that you're bringing on is essentially what you're showcasing. You're not living the good life you're actually living a really crappy life. So that's kind of the premise of the four walls. And it when. I didn't really know that term when i first started doing my own budgeting but i realize kay. I've got regular monthly expenses that i always have to pay out have to pay my mortgage. I always have to pay the insurance. I always have to put gas in my car. Food on the table and a couple of medications and and some clothes. Those are the things that always spend money on every single month. What's fantastic about that is because it is you have the ability to look back over the last twelve months and really identify what your lifestyle is just by those expenses alone. Yeah that's that's interesting and it's it's definitely a a i won't say it's that different but it's definitely different than like you said what a lot of folks are gonna find when they do that. Google search for when they do that duck go search right on the internet of. Hey how do. I do a budget you know. What are the first things. I i should consider and and using hierarchy of needs and for those who are familiar with it. This basically just a pyramid that that stacks from bottom to top the needs. Every person has basic needs like markos already talked about psychological needs and then tops off. Self-fulfilment needs achieving your full potential including creative activities. And things like that. But with the four walls i know. They're all critical right but is one more important than the other. Is that the all really really for lack of a better term foundational for your financial health. They all are foundational. But dave will argue. And i kinda back this little bit. Is that if you have a choice between spending money on your electric bill and spending money on food you buy food and you can work with the company to to keep your electricity on food. Would probably the be the highest priority. Next would be your housing so everything that's involved with your housing your mortgage your mortgage. Iran's your utilities and then transportation would be third because there are things that you can do if you're spending too much on transportation. There's things that you can do to to lower those expenses but we can get into that little bit and then obviously medical. Now it's it'd be a toss up then if you've got to take medications or you need food a well. Okay then yeah but but at the same time. If the majority americans being healthy and not needing a whole lot of medications food would be the top priority so food station and then the other necessities sure sure so that so that kind of helps me prioritize as far as you know if i do find myself in a situation like I don't know what i'm going to you know. I only have so much money this month. And i can't pay whatever this one bill. Is you know kind of helps me. Prioritize food housing transportation medical. You know and then if it's more detailed it's down to the really really fine details of a few dollars here versus a few dollars here then. I think that's something you really just sit down like. If it's if it's you by yourself you just make the best decision right an absolutely. If it's you with your family you know you sit down with your spouse and or with your partner and you you talk about it like what do we want to do this month to make ends meet well and and i would say to that the amount of people who actually don't realize where their money's going is phenomenal so he say eighty percents living paycheck to paycheck. I would say one hundred percent of that. Eighty percent have no idea whether money's going and they don't realize that they probably have enough coming in to cover these four walls and then some that the problem comes is when they make all of the additional lifestyle choices and then they're like oh. I don't have enough money for food while it's because they just bought a thousand dollar iphone. So i mean like i know that's really rudimentary example. Because most people are buying their phones on the month to month plan that they put on that they tacked onto your bill which side note really crazy. I was trying to buy a new phone for my wife. No cellphone store will let me pay full price outright for the phone. They forced me to put it onto a monthly plan. Really i is crazy not i was like. I've got nine hundred dollars. That i'm gonna pay you right now and they don't want it. They want it on the monthly plan. So what's funny is so my family. We are an android family. Okay we've always been. We've never gotten into the iphones. You know my daughter. She's a teenager now. So she's kind of leading me toward the iphone but we've always been an android family and for the past few years. I have bought all of our phones directly from samsung. I don't know if you can do that with apple or not if it has to be carrier specific and you have to do over a month to month plan but if i go to samsung dot com. I can just buy that phone outright. I couldn't yeah. I basically i swipe my card more or less you know and you type in my numbers. He and then a couple of days i get new phone on my on my doorstep and so have to remember that for my wife because she's a samsung guy. I'm an iphone. Yeah for sure and so we when we started doing that. We've been with our with our carrier for. I don't know five six seven years now and so we're not really planning on leaving and going to another carrier. But i do get the unlocked phones just in case i need to right and so and so it is really nice to just be able to swipe their credit card and be like. Hey here you go. Here's all the money up front. I don't have to worry about that That money coming out every month right so off that sidetrack for second sorry about that it was just. It was really crazy when i was trying to do that. I couldn't believe that is crazy for phone. So why things that. When when i sit down with somebody and i'm going through this. Is that a lot of people. Don't realize all of the essentially the line items within each of these categories so under housing. There's a couple of lines you've got your mortgage or your rent which includes particularly if you have a mortgage. It also

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