Latest / The Table with Anthony ONeal / 4 Money Decisions to Make When There's Nothing Left to Cut in Your Budget

Transcript

4 Money Decisions to Make When There's Nothing Left to Cut in Your Budget · The Table with Anthony ONeal

0:00
[SPEAKER_00]: 37 out of every 100 adults in this country could not cover a $400 bill with cash right now.
0:07
[SPEAKER_00]: And 12% honestly couldn't cover it at all.
0:10
[SPEAKER_00]: Not with cash, not with their savings, not with the friends help, not with nobody.
0:16
[SPEAKER_00]: And this specifically comes from a survey done back in August from the Federal Reserve.
0:23
[SPEAKER_00]: Now,
0:25
[SPEAKER_00]: Here's what I hear almost every time I teach around this subject.
0:29
[SPEAKER_00]: Somebody is going to raise their hand or someone's going to call me, I'll send me emails, they'll, I've already did this.
0:34
[SPEAKER_00]: I've cut every single thing and there's nothing left that I can cut.
0:39
[SPEAKER_00]: And I want to say this for the first time at a table.
0:41
[SPEAKER_00]: I believe half of you.
0:43
[SPEAKER_00]: And I'm not going to sit here on today's episode and tell you that the squeeze isn't real.
0:47
[SPEAKER_00]: Because I understand rent when a mortgages rent up.
0:50
[SPEAKER_00]: Utilities are going up.
0:51
[SPEAKER_00]: Gross res rent up.
0:53
[SPEAKER_00]: The car even costs more than it did, and this will be real.
0:57
[SPEAKER_00]: Our checks are starting to feel like they're at they ain't moving at all.
1:02
[SPEAKER_00]: I did some research in our found out that Americans are carrying about 1.26 trillion dollars in credit cards right now.
1:10
[SPEAKER_00]: This also was in the same survey done by the New York Fizz back in August.
1:15
[SPEAKER_00]: y'all, this is almost close to the highest it it has ever been.
1:20
[SPEAKER_00]: So a whole lot of that pressure is not your fault and is not completely all in your hands, but I've got to be honest with you on today's episode.
1:29
[SPEAKER_00]: Some of it is.
1:31
[SPEAKER_00]: There are going to be four decisions that you need to make within the next three months by the end of this year that are in your hands, and nobody's going to make these decisions for you.
1:41
[SPEAKER_00]: And I want to give you these four upfront of what we're going to cover today, which are important, which is crucial that you have to have done and make the right decisions going into 2027.
1:51
[SPEAKER_00]: Decision number one is what you let keep leaving.
1:56
[SPEAKER_00]: You see, there's money walking out of your account every single month that you're not using, and that's beyond us, that you don't even want.
2:05
[SPEAKER_00]: Was these me over to decision number two?
2:08
[SPEAKER_00]: What do you ask in for?
2:10
[SPEAKER_00]: And here's a truth, most people never ask because of pride or because they're scared or because they're nervous that they'll get an answer called no.
2:19
[SPEAKER_00]: But the ones who ask usually get something, maybe not everything, but something we're going to talk about that.
2:26
[SPEAKER_00]: Decision number three, what your money does while you're sleeping.
2:31
[SPEAKER_00]: A lot of people leave you're investing and I'm going to be honest with you, a lot of you are not.
2:35
[SPEAKER_00]: I'm going to show you that number today.
2:38
[SPEAKER_00]: which I believe decision number four, which is the most important and most crucial one, who you build your life with, and where you to live while you're building it.
2:48
[SPEAKER_00]: Those two, I'll run every budget you'll ever write.
2:53
[SPEAKER_00]: We have four decisions today.
2:55
[SPEAKER_00]: All of them are yours, but not one of them requires a raise before you can start, and I want to get straight into it.
3:03
[SPEAKER_00]: Pull up your chair, welcome to the table.
3:07
[SPEAKER_00]: Before you can decide every dollar, or before I would say like this, before you decide every dollar you spend is a necessity.
3:13
[SPEAKER_00]: I want you to look back.
3:15
[SPEAKER_00]: I want you to pull up the last 30 days, okay?
3:19
[SPEAKER_00]: Not the budget that you wrote.
3:20
[SPEAKER_00]: I'm talking about your last 30 day bank statement that actual charges.
3:26
[SPEAKER_00]: And I want you to go line by line.
3:28
[SPEAKER_00]: I want you to ask yourself one question that I ask myself every single month, even still to this day.
3:34
[SPEAKER_00]: What I still have purchased this item, or product, or car, if nobody else could see it, I'm gonna let that sit right there.
3:45
[SPEAKER_00]: I'm saying it one more time.
3:47
[SPEAKER_00]: would you, would I still have bought this if nobody else could see it?
3:55
[SPEAKER_00]: I call this the nobody's watching test and it's the fastest audit in personal finance.
4:01
[SPEAKER_00]: The jacket you purchase because everybody at work has asked out the nice version of something in your order so it will look like you got that money.
4:14
[SPEAKER_00]: Remember, somebody told me just recently that they purchased the new version of my car because they got to have the newest and the greatest.
4:24
[SPEAKER_00]: I wasn't impressed.
4:25
[SPEAKER_00]: I was happy for the particular individual, but I was not impressed.
4:35
[SPEAKER_00]: I was about to say something, and I don't wanna say that.
4:39
[SPEAKER_00]: If you would still purchase it with nobody watching,
4:44
[SPEAKER_00]: If nobody ever saw it, then I want you to keep it.
4:46
[SPEAKER_00]: I want you to enjoy it, because that's your money.
4:50
[SPEAKER_00]: If you wouldn't though, and it's still returnable, take that joke with back to day.
4:57
[SPEAKER_00]: And before anybody thinks, I'm up here looking down or speaking down, nah, let me tell you all a little bit about me.
5:10
[SPEAKER_00]: is me being honest for people who may be new to the to the community.
5:15
[SPEAKER_00]: See early in COVID, one of my closest friends bought me my first pair of Gucci shoes named brand shoes.
5:22
[SPEAKER_00]: And when I started doing my research with Gucci, I noticed that there was a matching backpack and a matching duffer bag.
5:27
[SPEAKER_00]: I went and bought it for $3,000.
5:29
[SPEAKER_00]: Y'all that was COVID.
5:30
[SPEAKER_00]: I wasn't traveling anywhere.
5:33
[SPEAKER_00]: But I had the money, and I was like, y'all, since I got the money, I'm out of debt, I got the bad, let me go spend it.
5:38
[SPEAKER_00]: And y'all had said in my closet for months, and I would just look at it.
5:45
[SPEAKER_00]: Because I never used it, I had to receipt, I returned it.
5:48
[SPEAKER_00]: And I came out of what I would say is a sentence to myself.
5:54
[SPEAKER_00]: Just because I had the money, doesn't mean I needed to spend the money.
5:58
[SPEAKER_00]: I had to ask myself Anthony,
6:02
[SPEAKER_00]: You're not using a bag, why did you buy it?
6:07
[SPEAKER_00]: I got 3,000 dollars back.
6:09
[SPEAKER_00]: You see, that's not a lesson that you will graduate from.
6:13
[SPEAKER_00]: I was already dead free when I purchased the bag.
6:20
[SPEAKER_00]: But I had to ask myself, did you really want the bag?
6:25
[SPEAKER_00]: Now, here's the second place money leaves.
6:29
[SPEAKER_00]: And this one is a, as a choir to one I would say.
6:33
[SPEAKER_00]: your statement.
6:35
[SPEAKER_00]: C++R research acts people, what they spend on subscriptions every single month.
6:41
[SPEAKER_00]: The average guess was right around $86.
6:44
[SPEAKER_00]: Then they walked those same people through it line by line, and that real number was $219.
6:50
[SPEAKER_00]: Off by $133 a month, on money that already is being spent.
6:59
[SPEAKER_00]: Let me break it down until you like this.
7:01
[SPEAKER_00]: That's 1,596 dollars a year.
7:04
[SPEAKER_00]: And nobody in that study was careless.
7:08
[SPEAKER_00]: You signed up for the free trial, the streaming app, the fitness app, the meal kit, the facial stuff.
7:17
[SPEAKER_00]: You admit to cancel it and delete got away from you.
7:20
[SPEAKER_00]: The month got away from you and it has been charging you quietly ever since.
7:27
[SPEAKER_00]: I'm reminded of the scripture.
7:29
[SPEAKER_00]: When it says, it has a line about this.
7:33
[SPEAKER_00]: I think it's, um, Proper's, Proper's 27 and verse 23, New King James Version I'm gonna say.
7:40
[SPEAKER_00]: The diligent to know the state of your flocks and attend to your hurts.
7:49
[SPEAKER_00]: Know the state of what you have.
7:54
[SPEAKER_00]: That was written to men whose entire network walked around on four legs.
7:59
[SPEAKER_00]: The wealth could wander off, and they wouldn't know until they went out and counted.
8:06
[SPEAKER_00]: And God didn't tell them to go get more sheep.
8:10
[SPEAKER_00]: What did he say?
8:11
[SPEAKER_00]: He told them to know the ones they already had.
8:15
[SPEAKER_00]: Most of you don't have a money problem this month.
8:17
[SPEAKER_00]: Most of you don't even have a money problem period.
8:20
[SPEAKER_00]: You have a counting problem.
8:22
[SPEAKER_00]: You haven't looked at your statements and created a budget.
8:28
[SPEAKER_00]: So I need you to look.
8:29
[SPEAKER_00]: You see, when you find a charge, you forgot, counseling right then, not later.
8:34
[SPEAKER_00]: Didn't do the part, everybody skips.
8:35
[SPEAKER_00]: Open next month statements, and make sure it actually stayed gone.
8:40
[SPEAKER_00]: Make sure that you actually counted it.
8:42
[SPEAKER_00]: And don't tell me, you'll just spend less.
8:45
[SPEAKER_00]: That's not a strategy, that that's not a plan.
8:48
[SPEAKER_00]: That's a wish that is not really going to happen.
8:52
[SPEAKER_00]: Willpower is not a system.
8:55
[SPEAKER_00]: A habit is a system.
8:57
[SPEAKER_00]: I need you to put your own account or the same day every single month.
9:00
[SPEAKER_00]: New when your statement's just been 15 minutes.
9:03
[SPEAKER_00]: Just looking at your statements.
9:06
[SPEAKER_00]: Listen, I don't care what the world says.
9:08
[SPEAKER_00]: I don't care what TikTok and Instagram says.
9:10
[SPEAKER_00]: That's not being cheap.
9:12
[SPEAKER_00]: You're not counting every penny because you're struggling.
9:15
[SPEAKER_00]: No, that's being a good steward of what God left you with when it comes to your other 90%.
9:22
[SPEAKER_00]: And when we could show God, we could be a good steward of the 90 who make the 90 bigger.
9:33
[SPEAKER_00]: Now, before we move on, before you invest a single dollar, build a business or chase any gold, there's one thing that has to be true first.
9:41
[SPEAKER_00]: You have to be consumer debt free.
9:45
[SPEAKER_00]: Most people try to build wealth before they even know where their money is actually going.
9:49
[SPEAKER_00]: They have no budget, they have no plan, aka they have no strategy.
9:53
[SPEAKER_00]: Just consumer debt paling up in the background while life keeps moving forward.
9:58
[SPEAKER_00]: That's why I built in the black.
10:01
[SPEAKER_00]: The app that gives you a daily money coach and your pocket.
10:05
[SPEAKER_00]: It walks you through my five-phase escape plan.
10:07
[SPEAKER_00]: Heels you a zero-based budget and tells you exactly.
10:11
[SPEAKER_00]: Watch this exactly what to do with your money, every single day, not every month, not every week, for every single day when you wake up.
10:19
[SPEAKER_00]: You see, this isn't just theory.
10:20
[SPEAKER_00]: It's the same process that has helped over a hundred thousand families get out of debt.
10:25
[SPEAKER_00]: Real people, like yourself, are paying off thousands of dollars using this app.
10:30
[SPEAKER_00]: One got it, step at a time.
10:32
[SPEAKER_00]: All you guys do is go to anthonyoneau.com 4-app right now.
10:36
[SPEAKER_00]: Take the two minute quiz and please be honest and get your personalized plan.
10:40
[SPEAKER_00]: Fix your foundation first.
10:42
[SPEAKER_00]: Then go build whatever's next.
10:44
[SPEAKER_00]: Go to anthonyoneau.com 4-app and let's get back to today's show.
10:50
[SPEAKER_00]: Because all of this depends on you actually seeing your money.
10:54
[SPEAKER_00]: If you don't want to hunt through three months of statements by hand, I built a powerful app called In the Black for this exact thing.
11:04
[SPEAKER_00]: It's going to sweep your transactions, it's going to categorize them, and it's going to tell you your overspending in this area every single month instead of after.
11:14
[SPEAKER_00]: All you have is go to anthonyoneau.com 4-app, go get it, then come back because the next one is where the real money is.
11:22
[SPEAKER_00]: Again, that's anthonyoneau.com 4-app, you can try that out today and get your money back today.
11:29
[SPEAKER_00]: Let's go.
11:32
[SPEAKER_00]: Here's the decision number two.
11:37
[SPEAKER_00]: Now, let me talk to the person I mentioned at the top of today's episode.
11:42
[SPEAKER_00]: You ran the test, you read the statements, you canceled what you found, and a math still doesn't work out for your benefit.
11:49
[SPEAKER_00]: Written food and the basics take the entire check.
11:54
[SPEAKER_00]: Hear me, clearly.
11:57
[SPEAKER_00]: Cutting is not your levering more.
12:01
[SPEAKER_00]: We have an inconseituation.
12:04
[SPEAKER_00]: And I'm not about to give you a hustle talk.
12:07
[SPEAKER_00]: I'm going to show you the cheapest raise available in this country and is one you are ready somewhat qualified for.
12:18
[SPEAKER_00]: Um, when I was studying for today's show, I found that Pew, Pew research looked at workers who negotiated when they were hired.
12:27
[SPEAKER_00]: Now, 66, 66% of the people who acts for more money got more money when they first got on.
12:36
[SPEAKER_00]: Now, listen, they made a, that's a, for example, they asked for extra 5,000, they made it got an extra 1,500.
12:42
[SPEAKER_00]: but the same study found that fewer than a half of America's did Americans didn't ask at all.
12:49
[SPEAKER_00]: So I'm gonna sit with that.
12:50
[SPEAKER_00]: The majority who acts for something got something, but the majority of them never asked.
12:58
[SPEAKER_00]: Now some of you probably just got like, whoa, whoa, whoa, whoa, whoa, whoa, hey, oh, hey, because you don't want to feel like you're begging.
13:04
[SPEAKER_00]: Well, let's 20, 26.
13:07
[SPEAKER_00]: I don't care what you feel like.
13:09
[SPEAKER_00]: It's not begging.
13:11
[SPEAKER_00]: It is your worth, it is your value.
13:13
[SPEAKER_00]: There is nothing wrong with saying, hey, can I ask for this?
13:16
[SPEAKER_00]: And here's the thing.
13:18
[SPEAKER_00]: Ask for more than what you know, you're gonna get.
13:21
[SPEAKER_00]: So that way you get something.
13:24
[SPEAKER_00]: And the ask is not the hard part anyway.
13:27
[SPEAKER_00]: And my personal opinion, I think it's the preparation that is actually hard.
13:32
[SPEAKER_00]: Because here's the strategy.
13:36
[SPEAKER_00]: Here's the strategy.
13:38
[SPEAKER_00]: Start a year early.
13:40
[SPEAKER_00]: Not a week early.
13:42
[SPEAKER_00]: Sit down with your supervisor or your boss and ask them just one question.
13:46
[SPEAKER_00]: What would it take for me to move up a level?
13:52
[SPEAKER_00]: What would it take for me to show you that I could be more valuable to the company?
13:57
[SPEAKER_00]: Don't respond.
13:58
[SPEAKER_00]: I want you to write down exactly what they say and read it back.
14:02
[SPEAKER_00]: So you both hurt the same thing.
14:05
[SPEAKER_00]: Now, that's no longer suggestions.
14:07
[SPEAKER_00]: Those are your goals over the next 12 months.
14:11
[SPEAKER_00]: Every quarter you go back and ask, am I doing what we talked about?
14:15
[SPEAKER_00]: Am I on track?
14:17
[SPEAKER_00]: Am I performing well?
14:19
[SPEAKER_00]: Am I meeting the obligations?
14:21
[SPEAKER_00]: Do you see the work that I'm putting in?
14:24
[SPEAKER_00]: And here's the strategy.
14:26
[SPEAKER_00]: Keep a folder and feed it all year.
14:31
[SPEAKER_00]: Every furnace product project, every email where somebody wrote, thank you, great job, hey, you say this.
14:38
[SPEAKER_00]: Every number you moved, every increase you've got for the company.
14:43
[SPEAKER_00]: The difference between the person who gets the raise and the person who gets a maybe is almost never about the talent.
14:50
[SPEAKER_00]: It is simply about documentation.
14:53
[SPEAKER_00]: Did you document everything you've done for the company?
14:58
[SPEAKER_00]: And when the day comes, yo, bring that photo out, show them your work.
15:05
[SPEAKER_00]: You name the number that matches the work you put in, and then you stop talking.
15:14
[SPEAKER_00]: Gas silence?
15:16
[SPEAKER_00]: I was going to feel like 10 minutes, but it'll probably like five seconds.
15:20
[SPEAKER_00]: Let it sit.
15:22
[SPEAKER_00]: Don't fill it by talking yourself back.
15:26
[SPEAKER_00]: The person who talks first and that moment negotiates against themselves.
15:31
[SPEAKER_00]: And nine times out of ten, that's the person who needed the money.
15:36
[SPEAKER_00]: Build your case on your own worth, not on what somebody down the hall says they make.
15:43
[SPEAKER_00]: Your record, your work is your argument.
15:49
[SPEAKER_00]: And let me say this.
15:51
[SPEAKER_00]: And if side work has to carry you for a season, take it, y'all.
15:57
[SPEAKER_00]: It's tiring, I get it, and I won't pretend otherwise.
16:00
[SPEAKER_00]: I get it, getting off work at Fabricot to go to another side job.
16:04
[SPEAKER_00]: That's tiring, that's boring.
16:06
[SPEAKER_00]: That's a lot of stress and wear and tear in a body, but it buys your room.
16:10
[SPEAKER_00]: And every decision you make without room is a decision.
16:12
[SPEAKER_00]: Somebody else is really making for you.
16:17
[SPEAKER_00]: Let me be straight with you.
16:19
[SPEAKER_00]: I'm about where this is specifically going.
16:22
[SPEAKER_00]: Everything I'm teaching today is one piece of a bigger plan.
16:25
[SPEAKER_00]: And the whole plan is inside of my brand new books Stop Living Page at the Patriot.
16:30
[SPEAKER_00]: This was my doctoral project at Region University before it was ever a book.
16:36
[SPEAKER_00]: I spent years in research on why people who make good money still end up muck to month.
16:43
[SPEAKER_00]: I want you to get your copy because the next two decisions are the ones that book spins the most time one.
16:50
[SPEAKER_00]: Amazon has it on sale, you can go there, go to any of your local bookstore but Amazon, you know me, I'm always about a budget, has it on sale right now at the time let's record it for like 20 bucks.
17:02
[SPEAKER_00]: style living page at a paycheck would be a blessing to your life.
17:06
[SPEAKER_00]: But I want to get to decision number three.
17:08
[SPEAKER_00]: I told you at the top, I had a number that was going to bother you.
17:15
[SPEAKER_00]: I'm ready to address it.
17:17
[SPEAKER_00]: So here it is.
17:19
[SPEAKER_00]: Vanguard looked at money that individuals put into the IRAs.
17:25
[SPEAKER_00]: of the counts funded by people writing their own contribution in 55% of that money was still sitting in cash 12 months later.
17:34
[SPEAKER_00]: That's more than half.
17:36
[SPEAKER_00]: I'm with that deposit sit right there.
17:38
[SPEAKER_00]: More than half.
17:40
[SPEAKER_00]: And when they asked why, almost half of those people said they thought the contribution was getting invested automatically.
17:50
[SPEAKER_00]: I talk about this inside of stop living page at a page at
17:55
[SPEAKER_00]: So let me say this as plainly as I know how respectfully opening the account is not investing putting money in the account is not investing the money has to actually buy something
18:12
[SPEAKER_00]: So I want you to go check today, log in, look at your money and see what is it holding?
18:18
[SPEAKER_00]: Like, where is it being holding?
18:20
[SPEAKER_00]: Or is it being invested?
18:21
[SPEAKER_00]: If the only thing in there is a cash balance, you've been saving in account with a fancy name and telling your friends you're actually investing, but not getting any compound interest.
18:34
[SPEAKER_00]: But before you put your money anywhere, we have to get the order right, because the order is the strategy.
18:40
[SPEAKER_00]: Remember, financial freedom and building wealth is what strategy.
18:46
[SPEAKER_00]: It is a plan, it is a system.
18:48
[SPEAKER_00]: So saving and investing do different jobs.
18:51
[SPEAKER_00]: Saving is your cushion.
18:52
[SPEAKER_00]: The car repair, the surprise bill, the week everything falls apart at once.
18:57
[SPEAKER_00]: Saving is what lets you sleep.
19:00
[SPEAKER_00]: but investing is for 20 and 30 years from now for your 80-year-old self, your 90-year-old self, your 50-year-old self.
19:06
[SPEAKER_00]: You don't skip one for the other.
19:09
[SPEAKER_00]: So here's the order that I specifically teach, and it's the same order inside of Start Living Page at a paycheck.
19:17
[SPEAKER_00]: First,
19:19
[SPEAKER_00]: save one month of your take home pay.
19:21
[SPEAKER_00]: Not one thousand dollars, one month of what you actually will actually land inside of your bank account.
19:26
[SPEAKER_00]: That's what I call your starter emergency fund.
19:29
[SPEAKER_00]: And second, I need you to get out of consumer debt.
19:32
[SPEAKER_00]: This is everything except for your mortgage.
19:35
[SPEAKER_00]: And I teach one method specifically to death snowball, where you list every consumer death smallest balance to largest, you pay the minimum of all of them, throw every extra dollar at the smallest one, and when it clears, you roll that whole payment onto the next one.
19:51
[SPEAKER_00]: I somebody watching this has a spreadsheet open right now.
19:53
[SPEAKER_00]: You're going to hit me with the whole dead avalanche map.
19:55
[SPEAKER_00]: They'd have to cool and gravy do whatever works for you.
19:58
[SPEAKER_00]: But for here at the table, we teach the death snowball because I know the math.
20:03
[SPEAKER_00]: But getting out of debt is not a math problem.
20:05
[SPEAKER_00]: It's a behavior problem.
20:06
[SPEAKER_00]: And they plan you quit, pays you 0% no matter what the interest rate was.
20:11
[SPEAKER_00]: So I'm not going to spend too much time on this one because you already know how I wrote.
20:15
[SPEAKER_00]: Not a third, now you're going to build that one month up to about three to six months of your net pay.
20:21
[SPEAKER_00]: If I'm being honest with you, I wish I can go back and change one thing inside of my book.
20:26
[SPEAKER_00]: I want to stretch just at six months.
20:28
[SPEAKER_00]: Because I call this your exit number, your freedom, the beginning part to your freedom.
20:33
[SPEAKER_00]: And notice what I didn't say.
20:35
[SPEAKER_00]: I didn't say three to six months of expenses of essentials.
20:38
[SPEAKER_00]: No, I don't teach that anymore.
20:40
[SPEAKER_00]: If you're emergency fun, only covers a strip down
20:44
[SPEAKER_00]: that a month you actually need, man, you're going to make some hard decisions, and one thing I've learned about life is when you don't have to change anything with your life and you can progress forward without stressing about anything, without changing nothing, man, you'll make better decisions, okay?
21:05
[SPEAKER_00]: I want you to focus on that.
21:08
[SPEAKER_00]: Get to three to six months of your income.
21:09
[SPEAKER_00]: Maybe you can stretch it, get to six months.
21:11
[SPEAKER_00]: Now, fourth, it's now your invest.
21:14
[SPEAKER_00]: On purpose, and to something that actually buys shares.
21:20
[SPEAKER_00]: I want to say this though.
21:27
[SPEAKER_00]: Because sometimes I feel like I'm repeating myself, but I know we have a lot of new people here.
21:33
[SPEAKER_00]: And I know we have a lot of people who are like, man, I really don't understand this stuff.
21:37
[SPEAKER_00]: So let me say this again.
21:38
[SPEAKER_00]: A plan with no destination gets abandoned every time.
21:44
[SPEAKER_00]: So do one more thing this week.
21:47
[SPEAKER_00]: Picture a good year, not a fantasy.
21:49
[SPEAKER_00]: One ordinary year of the life you actually want, where do you live?
21:55
[SPEAKER_00]: Who are you taking care of?
21:57
[SPEAKER_00]: What do you give away?
21:58
[SPEAKER_00]: Want you to put that on paper and get specific because now the returns and the statement and the folder are all pointing somewhere.
22:09
[SPEAKER_00]: And hear me.
22:11
[SPEAKER_00]: Because somebody needs this.
22:15
[SPEAKER_00]: The pitcher is a starting point.
22:18
[SPEAKER_00]: It is not a verdict on where you are today.
22:21
[SPEAKER_00]: If the distance between that page and your life feels enormous right now, that is not a reason to put the pen down.
22:31
[SPEAKER_00]: That's exactly what the plan is for, pre-to-see, because if we aim at nothing,
22:40
[SPEAKER_00]: We hit that all the time, but if we have a target, we may not hit the target, but we gonna get close as heck, close as heck.
22:51
[SPEAKER_00]: Now the two decisions that outrun every budget you'll ever write, where you live and who you build your life with.
23:02
[SPEAKER_00]: You can do everything else on this list right and let these two things go wrong and the math will never catch up.
23:13
[SPEAKER_00]: Start with the house.
23:17
[SPEAKER_00]: One thing at home is good.
23:19
[SPEAKER_00]: Ownership definitely changes to family trees and I'll say that on any stage in America.
23:26
[SPEAKER_00]: I can just start with one question.
23:28
[SPEAKER_00]: Why do you want it right now?
23:31
[SPEAKER_00]: Redfin says that the typical American homeowner now stays in the house 12 years, and 2005 that number was six and a half.
23:44
[SPEAKER_00]: People are staying put twice as long.
23:47
[SPEAKER_00]: So you're not making a three year decision anymore.
23:49
[SPEAKER_00]: You're making 12 years.
23:53
[SPEAKER_00]: a house fits when you plan to stay in it a while.
23:58
[SPEAKER_00]: When you're not chasing the opportunity in another city and when you're ready for the repairs and the fees and the taxes that come with it, I just had to put brand new irrigation into my new home and boy, I didn't want to, but that comes with being homeowners.
24:16
[SPEAKER_00]: Pretty soon I got the chance to water here
24:22
[SPEAKER_00]: So, so you see, a home is an important decision.
24:29
[SPEAKER_00]: It's a life transformation decision for you and your family.
24:32
[SPEAKER_00]: It's not a headline.
24:34
[SPEAKER_00]: Let me say this, too.
24:35
[SPEAKER_00]: It's not a race with your friends.
24:36
[SPEAKER_00]: I don't care if your friends got the latest home.
24:38
[SPEAKER_00]: You're still in the apartment.
24:40
[SPEAKER_00]: Remember, everything is about freedom.
24:44
[SPEAKER_00]: And if you're living with family right now, here me clearly, there's nothing to carry shame about.
24:51
[SPEAKER_00]: And let me say this to you, man.
24:53
[SPEAKER_00]: Let me say this to the parents.
24:56
[SPEAKER_00]: Some of y'all are not going to like this.
24:58
[SPEAKER_00]: But let me say this to specifically my black parents.
25:05
[SPEAKER_00]: Don't be in a rush to get your children out of your house.
25:11
[SPEAKER_00]: If they're home, let them pay you $500 a month in rent.
25:15
[SPEAKER_00]: But then also let them show you that they're putting up $500 a thousand dollars a month in their savings account.
25:22
[SPEAKER_00]: I think the black community was such an aggressive specific for our black boys, get out, excuse me, get out and do your own thing.
25:30
[SPEAKER_00]: Those days are over, man.
25:32
[SPEAKER_00]: Yes, I left my house at 19 years old and I wish I can go back.
25:39
[SPEAKER_00]: Now I have great parents, my parents didn't kick me.
25:41
[SPEAKER_00]: Well, me and my staff father got into it, and I did have to leave the house at that time.
25:47
[SPEAKER_00]: But my parents would have let me back, but I was prideful.
25:50
[SPEAKER_00]: I was my parents, I was some I would have told an A-Boy, come here, pay us $500 a month.
25:57
[SPEAKER_00]: Haber job, go to school, do something with your life.
26:00
[SPEAKER_00]: But by the time you leave here, you need $50,000 to $100,000 sitting inside your savings account, and you need to go ahead and have a rock that I read and good index fund open.
26:10
[SPEAKER_00]: So here we clearly, if you're young and watching this, there's nothing wrong with staying at home.
26:15
[SPEAKER_00]: Now the only shame you should have is if you've been at home for five to 10 years and you don't have nothing inside your savings account, now we got a problem.
26:23
[SPEAKER_00]: Because the census data says about 70% of adults, 25 to 34 are still living with their parents and have jobs today.
26:30
[SPEAKER_00]: So they're not sitting down, they're working.
26:33
[SPEAKER_00]: And watch this, the ones who are there, they say close to 50% of them are actually stacking money
26:40
[SPEAKER_00]: But I remember being 14, and I had to get a work permit to go work at Taco Bell.
26:45
[SPEAKER_00]: And I remember my mom coming up to Taco Bell and giving me a list of food that she wanted me to bring cones, so my family can eat.
26:54
[SPEAKER_00]: Hmm.
26:56
[SPEAKER_00]: My parents worked hard.
27:00
[SPEAKER_00]: My mom worked three jobs, but every now and then I had to help.
27:05
[SPEAKER_00]: So I'm not going to let anybody make you feel small about where you're sleeping while you're building.
27:12
[SPEAKER_00]: I'm not going to let anybody make you feel shameful for what you've got to do to survive and to get there.
27:19
[SPEAKER_00]: But I think everything that we're doing today has to be intentional and on purpose.
27:26
[SPEAKER_00]: Take what you'll be paying for your own place and put that extra amount into your high
27:34
[SPEAKER_00]: Maybe you put half of it into a higher savings account and then you put the other half into a good index or ETF fund.
27:41
[SPEAKER_00]: Or if you have debt, maybe you're eliminating your student loan debt.
27:44
[SPEAKER_00]: I don't know, but everything needs to be intentional strategic so that way your next season can be better.
27:53
[SPEAKER_00]: And let me say this to the people who are living at home.
27:55
[SPEAKER_00]: Don't pick a move-out date, take an amount that you and your family member agree on.
28:01
[SPEAKER_00]: Like, I know if I had a son or a daughter that, hey, man, I don't care about you moving on this time.
28:05
[SPEAKER_00]: By the time you move out, I need $50,000 inside of you, how you'll say things.
28:10
[SPEAKER_00]: And then I need to lease $10,000 invested.
28:14
[SPEAKER_00]: And I need you, Devory.
28:19
[SPEAKER_00]: That's the number.
28:21
[SPEAKER_00]: Now, do we want to have a goal of when we can reach this number?
28:23
[SPEAKER_00]: Absolutely.
28:25
[SPEAKER_00]: But when we have that number met by that goal, now we're being strategic.
28:30
[SPEAKER_00]: Now, son, our daughter, go enjoy your life and just remember everything that we've taught you.
28:36
[SPEAKER_00]: Now, we're starting our young people ahead.
28:39
[SPEAKER_00]: Now, young person, you're starting ahead.
28:44
[SPEAKER_00]: This is the same conversation I'm having at Virginia Union inside of my consumer economics class right now.
28:50
[SPEAKER_00]: Like I know, a lot of you probably don't have, and I'm learning this, man.
29:02
[SPEAKER_00]: I'm praying for our younger generation because I'll say a quarter of my kids are saying, there's no way this is their words, not my words, but one of my kids that there's no way in hell, I'm going back home.
29:14
[SPEAKER_00]: And I got emotional because they said, man, my mom, jacked up my credit.
29:21
[SPEAKER_00]: It's not a healthier state, please.
29:27
[SPEAKER_00]: And I made me emotional.
29:30
[SPEAKER_00]: So parents, that that's you, and you're jacking up your children's future, same on you.
29:39
[SPEAKER_00]: Because they can't start off their adulthood with freedom, they're starting in bondage because of you, same on you.
29:50
[SPEAKER_00]: And if you did that, you can't just say, I'm sorry, you need to fix that crap immediately.
29:59
[SPEAKER_00]: Because issue your job to lead them in inheritance is not your job to make their life and living hell before they even start.
30:06
[SPEAKER_00]: I just went totally off the script, I'm sorry.
30:14
[SPEAKER_00]: Let me get back to it.
30:16
[SPEAKER_00]: I was got emotional for my students, man.
30:19
[SPEAKER_00]: One of my students was crying when they told me that.
30:20
[SPEAKER_00]: Because I missed her a new.
30:22
[SPEAKER_00]: I thought it was a kid is 18, has two credit cards.
30:44
[SPEAKER_00]: 18.
30:48
[SPEAKER_00]: 18.
30:51
[SPEAKER_00]: Parents, I know this is just a small group of people, but we gotta do better.
30:58
[SPEAKER_00]: But let's talk about parents.
31:02
[SPEAKER_00]: Because the biggest financial decision, most of you will ever make, and it has nothing to do with the kids, nothing to do with your bank account.
31:11
[SPEAKER_00]: has everything we do with who you choose.
31:14
[SPEAKER_00]: Because Bank of America's couple of money and study found money is the number one source of stress in American relationships.
31:21
[SPEAKER_00]: The AICPA, I believe, found 70% of married couples argue about money at least once a month.
31:28
[SPEAKER_00]: Nobody talks about this on the way in.
31:32
[SPEAKER_00]: Everybody deals with it on the way out.
31:38
[SPEAKER_00]: That doesn't mean you bring a paycheck stuff on the first day.
31:41
[SPEAKER_00]: Heck no.
31:42
[SPEAKER_00]: It means you talk about money early and then you get quiet and you just listen.
31:47
[SPEAKER_00]: Ask the person who you're dating.
31:50
[SPEAKER_00]: What they would do if money was no question.
31:55
[SPEAKER_00]: And listen to where they go.
31:57
[SPEAKER_00]: Travel, family, giving, security, save, invest.
32:02
[SPEAKER_00]: They just told you they're values.
32:06
[SPEAKER_00]: And didn't know they were even answering a money question.
32:09
[SPEAKER_00]: I mean, one time I asked a young lady, I was dating or getting to know I would say, not dating, but getting to know I asked that question.
32:17
[SPEAKER_00]: I said, hey, I said, listen, if a money was noise for you, what would you do?
32:24
[SPEAKER_00]: She said, oh man, I'm buying a, a broken bag.
32:29
[SPEAKER_00]: I'm gonna get the Mercedes G wagon.
32:33
[SPEAKER_00]: and then me and my girls, I'm gonna go on a girl's trip every single month.
32:39
[SPEAKER_00]: I said, that's what's up.
32:40
[SPEAKER_00]: I said, where's the ship going?
32:41
[SPEAKER_00]: Like, I engaged the conversation.
32:44
[SPEAKER_00]: But in the end of that dinner, I knew she wasn't one for me.
32:48
[SPEAKER_00]: It's not the bag.
32:50
[SPEAKER_00]: It's not the the car.
32:51
[SPEAKER_00]: Because I have my scars.
32:52
[SPEAKER_00]: I have a nice backpack, not a purse.
32:57
[SPEAKER_00]: But I was like, I didn't hear nothing about, man, I'm gonna say for the future.
33:01
[SPEAKER_00]: I'm gonna invest into my kids.
33:03
[SPEAKER_00]: I'm gonna pay off some debt.
33:04
[SPEAKER_00]: Everything was about, please in the flesh, and please in the individual, and I was like, listen, that's not a bad thing.
33:11
[SPEAKER_00]: But that's not a good strategy, long term, if I wanna build something substantial with my partner.
33:19
[SPEAKER_00]: Now, what I'm about to get to next, this is not for the Christian people.
33:24
[SPEAKER_00]: because I don't just have Christians who follow me, I have people who follow me, who may do believe in God, but they don't really follow everything.
33:31
[SPEAKER_00]: So I gotta speak to everything.
33:34
[SPEAKER_00]: Cause I'm not a pastor.
33:36
[SPEAKER_00]: I wouldn't ever do this, but I gotta speak to it.
33:40
[SPEAKER_00]: When living together may come up, talk plainly about rent, and who's gonna be paying what?
33:47
[SPEAKER_00]: Are we splitting this together?
33:49
[SPEAKER_00]: And my paying rent, are you buying groceries?
33:54
[SPEAKER_00]: then do the brave thing and say your number first.
33:57
[SPEAKER_00]: See, now when you go first, you make it safe for them to be honest.
34:02
[SPEAKER_00]: That's not killing a romance.
34:03
[SPEAKER_00]: That's being respectful and honest and being honest up front.
34:08
[SPEAKER_00]: Now, my personal philosophy is you should not move in together.
34:12
[SPEAKER_00]: And let me say this too, some of my criticism people may not like this, but it's not because of my religion.
34:18
[SPEAKER_00]: I just don't think that is strategic.
34:21
[SPEAKER_00]: Because when you, if you break up, I don't say when, but if you break up, which happened to people who move in together, tend to break up, it is difficult.
34:32
[SPEAKER_00]: It is difficult.
34:34
[SPEAKER_00]: I know someone right now moved in with her boyfriend and she can't leave because both in her name is on the lease.
34:40
[SPEAKER_00]: So she just can't up and leave.
34:44
[SPEAKER_00]: Now she's out here trying to date other men, while living with another man, ain't happening.
34:50
[SPEAKER_00]: So it just, it doesn't make strategic sense.
34:54
[SPEAKER_00]: And one more thing here, because it's the one people argue with me about.
34:59
[SPEAKER_00]: If you're trying to make a partner more ambitious, that's what morning's time.
35:03
[SPEAKER_00]: You cannot install one thing or waiting.
35:07
[SPEAKER_00]: I was, oh, no, one thing into another person.
35:09
[SPEAKER_00]: Man, listen, if they don't have the desire to be a good steward with money, if they don't have the desire to build a legacy for the future,
35:20
[SPEAKER_00]: to want to live below the means, y'all, you can't.
35:26
[SPEAKER_00]: I'm not qualified to talk about relationships on a romantic perspective, but half of the people who are inside of our freedom circle and the couples who come and have a conversation with me, they weren't aligned from the very beginning.
35:44
[SPEAKER_00]: And in this season of my life, in this dating season, I desire someone that we are aligned and watched this.
35:50
[SPEAKER_00]: It could be two good people, just not aligned.
35:58
[SPEAKER_00]: As I'm growing and evolving in this space, you gotta be aligned when it comes to religion.
36:04
[SPEAKER_00]: Two kids, three money.
36:13
[SPEAKER_00]: You can't be a Christian and Dayton and atheists.
36:20
[SPEAKER_00]: You can't want to raise your kids this way and they want to raise a kids this way.
36:26
[SPEAKER_00]: And when I say a line to money is that you two can get on the same page of the invasion.
36:31
[SPEAKER_00]: Now one may be a Spender, one may be a saver.
36:33
[SPEAKER_00]: That's cool, but a Spender and a saver can at least get to the same vision at the end.
36:42
[SPEAKER_00]: So as we in today's episode, let me give you the most important thing I am going to say today.
36:51
[SPEAKER_00]: Money is a tool.
36:53
[SPEAKER_00]: It is not a verdict on you.
36:57
[SPEAKER_00]: Having a little bit of money is, it doesn't make you bad.
36:59
[SPEAKER_00]: Watch this though, having a lot of money doesn't make you good.
37:05
[SPEAKER_00]: money does not get to shame you, and it does not get to define you, what more it gives you is options, more room for your family, more room to be a mother to be a father, more room for your parents, more room to be generous on purpose instead of by accident.
37:25
[SPEAKER_00]: And let me say this to the mature people I was with a couple.
37:31
[SPEAKER_00]: And I think
37:35
[SPEAKER_00]: But I'm going to say this in a mature way, a grown-folk way.
37:40
[SPEAKER_00]: If you got little kids, tell them the cup of their ears.
37:47
[SPEAKER_00]: But in one of my sessions, the couple came in and the husband started first and he said, I want to say thank you.
37:53
[SPEAKER_00]: I was like, why?
37:55
[SPEAKER_00]: Because when we started listening to your escape plan, we put that in the place and we eliminated our debt.
38:04
[SPEAKER_00]: It's a man, I'm just going to be real, it feels uncomfortable saying this, but you helped our intimacy life.
38:11
[SPEAKER_00]: I was like, whoa, whoa, I said, I helped nothing.
38:17
[SPEAKER_00]: He was like, no, no, no, I don't think you understand.
38:20
[SPEAKER_00]: I saw the weight of something heavy on my wife's shoulder, leave.
38:28
[SPEAKER_00]: because she didn't have to worry about how we were going to pay for this and if we're going to be able to keep our kids in the private school, like the weight removed and I felt like she became more of a wife, more of a mom, more of a lover, more of a partner because the weight was going.
38:45
[SPEAKER_00]: And I simply said, well, I didn't do that.
38:49
[SPEAKER_00]: I just gave you the strategy.
38:50
[SPEAKER_00]: You all actually executed the strategy.
38:56
[SPEAKER_00]: And I think that's important.
39:00
[SPEAKER_00]: So you have four decisions that you need to make, 2020.
39:03
[SPEAKER_00]: Seven is coming up.
39:05
[SPEAKER_00]: We're gonna be having a webinar here soon to talk about how do we get prepared for 2027.
39:10
[SPEAKER_00]: We're gonna do this in late November, because I don't want it's going to 2027, thinking about 2027.
39:20
[SPEAKER_00]: I want it's going to 2027 already with this strategy.
39:25
[SPEAKER_00]: So I want you to keep it up.
39:27
[SPEAKER_00]: I'm gonna let you know when I'm gonna have that free webinar.
39:29
[SPEAKER_00]: I'm even thinking about doing a free meetup in DC to really get this thing together.
39:37
[SPEAKER_00]: So it's already too long.
39:38
[SPEAKER_00]: I'm on way past 35 minutes.
39:41
[SPEAKER_00]: And so let me get up out of here.
39:42
[SPEAKER_00]: So I'm adding the tank, get this thing, edited up and done.
39:47
[SPEAKER_00]: But I hope this makes sense for you today.
39:51
[SPEAKER_00]: Listen, all the important things are in the show description.
39:53
[SPEAKER_00]: Go check them out.
39:54
[SPEAKER_00]: Make sure you join our Freedom Circle.
39:57
[SPEAKER_00]: The Freedom Circles are new community that, man, it's amazing.
40:04
[SPEAKER_00]: AOFreedomcircle.com, AnthonyNil.com, 4-Sash, app to get the In-Black app.
40:10
[SPEAKER_00]: And go to Michigan and copy my latest book, stop living page at the page chat.
40:14
[SPEAKER_00]: We'll see you in the next show.
40:15
[SPEAKER_00]: Peace out.