“I’m Getting Ready To Knock You Out of Your Chair”

[Music] brought to you by the every dooll app start budgeting for free today Heather starts this hour in Tampa Florida hi Heather how are you well I'm better than I deserve good for you I love it how can we help yes um so I'm just trying to come up with a good investment plan um both my husband and I we've been married now 20 years this month and um I'm always just trying to look for better opportunities to try to keep um you know uh investment up and while we still kind of work you know job to job we kind of work paycheck to paycheck and so um I have a Apple stock that I invested in many years ago and I have a good wealth since we've been in Apple stock we've tripled since we started and um we also have two rothar IRAs each just only 6,000 for him 800 ,000 for me and um we got about $220,000 in savings and so I was trying to figure out I also do have just um a house that we just bought um and so we're paying on that and two cars is what we have uh no other debts just those things and so I was trying to figure out in my mind what I could do with my savings instead of making it so unproductive just sitting in the account you know I have only $20,000 in savings but would it be best to pay off a car would it be best um to uh cash out the Apple stock because you know of concerns they always say around election time specifically with crash they always talk about that happening so I'm just trying to get a better idea because I spoke with my financial advisor and he suggested maybe money market funds and I'm not very wise as far as financially okay um money market funds for the 20,000 yeah he wasn't saying the full 20,000 he was like you could start out putting 10,000 in money market funds which like I said I'm not very familiar with it yeah well money market fund is a fancy savings account it doesn't pay much pays more than a bad savings account at a bank it's basically a high yield savings accounts what it is so um but still not paying big money now here's the thing what we teach Heather is that your most powerful wealth building tool is your income okay your income right now is going to two car payments if you had those car payments going into Investments every month you would be Building Wealth pretty rapidly so our first goal is going to be to clear those car payments what do you owe on your cars so um it's about uh 16,000 and 18 ,000 wow okay and you've only got 20 what's your household income right uh my household income is about a little over a 100,000 good okay a year all right so if I woke up in your shoes we teach a process to get you to wealth by getting you out of debt called the baby steps baby step one is $1,000 in the bank now how much do you have an Apple stock what is it valued at today if you cash it in 21,000 excellent okay all right this is going to jar your system can you hold on to your chair for a second because I'm getting ready to knock you out of the chair okay here we go you you ready for the ride Ready set go here we go you ready oh my just be be kind I'm going to be kind but it's going to scare the crap out of you are you ready I'm cashing in the Apple stock and the 20,000 and paying off my cars today wow can you breathe well of course I mean now that would be stupid if you don't do the next thing and the next thing is your first thing you got to do now is rebuild your emergency fund which is what that 20,000 is it's not supposed to make any money it's supposed to sit there and keep life off of your head cuz life's going to come and land on your head and you w't e a helmet and that's what the 20,000 bucks is it's the umbrella in the rain cuz some days it rains so you need a rainy day fund that's your 20,000 it's not supposed to be making you a bunch of money but right now we're paying off a car with it so it doesn't matter so the cars are gone any money that we don't have in retirement account than and you'll have 7,000 left after that yeah start your emergency F start your emergency fund I do want to set that over in a money market or a high yield and I want you to get about 20,000 back in there that's your 3 to six months of expenses that's baby step three now you don't have any payments and you've got that so now we've got to start investing which is 15% of your income that'd be $155,000 a year 1,00 bucks a month going in your company 401ks with a match in good mutual funds or sit down with your broker or get a new one and sit down and get your uh your Roth IRA going into good mutual funds which'll be easy hether because there's no car payment to to your point earlier yep then you freed up so much income do you know what me month-to month hether and so those Roth IRAs that have six in one and eight in the other you're going to start seeing lots of traction in that and it's yeah you start adding $1,000 $1,500 a month to your retirement plan that's $15 $18,000 a year making a hundred grand then um and if you got a match at work and these mutual funds go up this year it would have made a little over 10% this year year to date if you put it in January 1 to right now you would have made 10% on good mutual funds and whoever's talking talking to you about a stock market crash quit listening to those fools okay stock market's not going to crash it goes up and it goes down goes up and it goes down election time it is always crazy there's always been stupid people in Washington of both Brands and there's still stupid people in Washington of both Brands some right now some of them are more stupid than normal but there're stupid people in Washington okay so that's never that's not a new that's not new information no but to her Point election time people do like things do kind of stall out people hold they watch they see the stock market doesn't crash on Election it doesn't no it doesn't crash but you're going to see a little bit of that volatility and that's normal you can go back to basically every election year every four years and you see the same thing so it doesn't mean it's going to crash but goes up it goes down and you're in the right you're in the right of it all so you just right you're just dumping 1,00 bucks 1,200 bucks a month 1,400 bucks a month every single month automatically out of your check into your 401K with a match or into Roth IRAs and Heather and I think Heather you're you're a prime example that so many people experience with their money honestly you're trying to do like five different things you got a single stock here you're trying to do some retirement you got car payments you have a little bit of money here savings and it's like I you feel so scattered versus clearing it all out and saying boom boom boom boom boom and then you can now tomorrow or after the emergency funds fully funded after that 7,000 you can fully focus on retirement you have one thing to do at a time and that's what gives you power and less of this like bizarre feeling that you probably feel with your money yeah if you pay off the cars and have 7,000 left over today by by the end of the year you'll have your 20,000 and in January you'll start saving 15% from this point forward of your income going into retirement you'll retire wealthy if you'll do those things but you got to be on a budget to do it you got to be in agreement with your husband and no more borrowing on stupid cars stop it