July 27, 2023 • 40 mins
Want to know how to be rich?? Jana is getting all the secrets to maximizing your wealth from personal finance expert Ramit Sethi!
Find out some easy and life changing tips that will totally shift the way you look at money!
We ask the challenging questions that everyone needs to know, like how much to have in a rainy day fund, how to save for retirement, and why you should always buy the latte!
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Episode Transcript
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Speaker 1 (00:01):
Wind Down with Janet Kramer, an Imheart radio podcast.
Speaker 2 (00:06):
He is the author of the New York Times bestseller
I Will Teach You to Be Rich, which has sold
over one million copies. He's been writing about money in
psychology for over twenty years. His podcast, I Will Teach
You to Be Rich features couples sharing real stories with
real numbers from behind closed doors. You can also find
him at www dot I Will Teach You to Be
Rich dot com. His book is again the New York
(00:27):
Times bestseller that taught a generation how to boost their income,
save money, and live a rich life, is now in
a revised second edition. He's a personal finance expert has
expanded his modern money classic for a new era with
a practical six week program designed to help readers develop
the skills and mindset necessary to manage their money effectively.
This updated edition is packed with new insights and strategies
(00:50):
for changing financial for a changing financial landscape. Start your
journey to a rich life today. Let's get a month. Hi.
Speaker 1 (00:59):
How's it going.
Speaker 2 (01:01):
I'm pretty good. How are you.
Speaker 1 (01:03):
I'm good. I'm good.
Speaker 2 (01:05):
Okay, I'm really excited to talk to you because I
come from a very I've mentioned this before on the podcast.
But I have such a scarcity mindset when it comes
to money, and I don't know if sometimes that actually
holds me back from making more money.
Speaker 1 (01:21):
If that makes sense, I'm sure it does. Okay, we
can talk about it. That's very insightful, already, very perceptive.
Speaker 2 (01:28):
Okay, well, good, good, good.
Speaker 1 (01:30):
Yeah. No.
Speaker 2 (01:31):
I grew up just a single mom and she you know,
I had to quit my favorite sport because my parents
got divorced and then couldn't afford it. And so in
my mind, I'm like, Okay, now that I have two kids,
one on the way, I'm like, I have to make
sure I don't spend anything and I and I have
to do a million different things because I have to
support them, and if I don't, then they have to
(01:51):
have to quit baseball or you know, soccer, and and
then I'm not what am I going to do? And
then where are they going to live? And then I
just start to like panic where I think I almost
overworking at times too, just because I'm throwing so many
darts trying to go, Okay, I need to make money,
I need to make money. And then I also I'm
not enjoying things too, like I bought myself my second
(02:14):
designer bag like two years ago. I will I will
not spend money.
Speaker 1 (02:22):
On wine.
Speaker 2 (02:24):
Then I will spend some money.
Speaker 1 (02:27):
Why okay? Wine or kids? Right right? Kids again? My kids.
Speaker 2 (02:30):
I'm like, oh, your soccer thing causes yeah, everything for
my kids.
Speaker 1 (02:34):
Yeah, okay, so let's go. It's super common. Yeah, it's
we'll talk about it. It's good.
Speaker 2 (02:40):
But yeah, So I mean, how I guess you know
your biggest teaching where you know I will teach you
to be rich is your book? And the second auditions
out what is the most common mistake that people make
in the efforts to becoming rich?
Speaker 1 (02:55):
Well, the most common thing people do is they just
don't tackle their money at all.
Speaker 2 (03:00):
They wu in which sense they don't.
Speaker 1 (03:03):
Engage with their money. You know how many people will
reach out to me and they'll go, I'm forty years old,
i have two kids. I feel so behind with money.
I'm worried, and I go, okay, we can work with that.
When was the last time you read a single book
about money? And they're like, I don't read books about money,
(03:25):
And I'm like, okay, well that actually explains a lot.
Most of us. We glean the way that we treat
money just by absorbing it. It's what our mom and
dad said when we were growing up. Usually things like
we can't afford that, we don't talk about money in
our family. Money doesn't grow on trees. And then we
take that and we see our friends going around and
(03:45):
we go, how come there and bora bora on a Tuesday,
And I'm not. So we never actually learned the basics
of money. So that's the biggest mistake is we're going
through life agonizing over this thing that holds so much
control over us, and we never actually learn the basic
rules of it.
Speaker 2 (04:02):
That's a really good point because anytime anytime my business
manager calls me, I get, I want to throw up,
I get. I'm just like, oh God, Kevin, I hate.
I hate when you call because he's always saying I
got to pay someone like my ex husband child supporter,
I gotta pay this, or I gotta pay you know
this this person, And I'm like, I just he's he's
my dwindling. Like every time he calls, I'm like, do
(04:23):
you ever have good news for me? Like, no, you never.
It's always like I gotta pay somebody, or I gotta
I gotta do this, or this person's trying to sue me.
Or I'm like, so I got to pay that lawyer
or whatever.
Speaker 1 (04:33):
Can I just ask you, do you see paying money
as losing.
Speaker 2 (04:38):
One million percent?
Speaker 3 (04:40):
Uh? Huh?
Speaker 1 (04:41):
You know, I don't see it like that.
Speaker 2 (04:42):
How do you see it?
Speaker 1 (04:44):
Think about when I go to a nice restaurant or
I love hotels. All right, I go to a nice hotel.
It's pretty expensive. I'm paying for the food or the experience.
Do you think I feel like I'm losing.
Speaker 2 (04:58):
No, because you're enjoying yourself.
Speaker 1 (05:00):
Yeah? Or what about you know I have people that
work for me. They're very talented. I pay them very well.
Am I losing when I pay them?
Speaker 2 (05:08):
No? Because they're helping invest in your company?
Speaker 1 (05:11):
All right? So's there's just you and I could be
paying the same amount to the same person, but we
might see it totally differently. And that's really at the
core of how we treat money. Most of us believe
money is just about some numbers on a spreadsheet, some
boring drudgery. I don't see it that way at all.
I look at somebody, I say, wow, you see a spreadsheet.
(05:33):
I see a trip to Disney World with your kids.
I see a beautiful handbag that you love every time
you pick it up. You know, I see the freedom
to maybe play with your kids on a weekday afternoon,
we can see it totally differently. That's because money is
not just about the numbers. It's also about how we feel,
and it's about our psychology towards it.
Speaker 2 (05:52):
And why is it so? Because whenever I get my
monthly statement, if it's not the certain number that I like,
then I will be in the most depressed state. And
then I'm just like, we're eating frozen tiketos for the
rest of the week.
Speaker 1 (06:07):
Let's just say for easy math, it's one hundred thousand.
If you see the number below that you start to
how did you describe it? Spin, Yeah, I just.
Speaker 2 (06:15):
Get really depressed. And then I'm just like, I bring
things closer, like okay, we got to tighten up here.
I can't spend here or and then I just start
to feel like my throat's closing up.
Speaker 1 (06:27):
And all right. I love the honesty. This is so common,
it's so calm, and it's not just you can I
ask a question, where did you come up with that number?
And what does it mean to you?
Speaker 2 (06:41):
I guess if that number was to be lower, it
would mean that I'm not successful, that I failed.
Speaker 1 (06:47):
Where did that come from? Is it in the dictionary
that under successful anything less than one hundred thousand means
you're not successful? No? Where did it come from? Though?
Speaker 2 (07:00):
Then I guess myself or I guess the oh people
are right, I'm I'm a failing this, or I'm no
longer al us this, sir.
Speaker 1 (07:11):
Yeah, I ask because a lot of times we all
have a feeling about our money, and a lot of
us believe if I just get five thousand dollars more
dollars five hundred thousand, finally I can relax. Finally I
won't worry right any of those things?
Speaker 3 (07:30):
Ever?
Speaker 1 (07:30):
Have you ever said any of those things?
Speaker 2 (07:32):
One million percent?
Speaker 1 (07:34):
And the truth is that the way you feel about
money is highly uncorrelated to how much you have in
the bank. I'll say it again because I want everybody
to make sure they get this. The way you feel
about money is extremely uncorrelated to how much you have
in the bank. So I've talked to couples on my podcast,
(07:54):
they come on, they share all their financials, and on
my Netflix show, and some of them have thirteen million
dollars in net worth and they are agonizing over the
price of a mattress.
Speaker 2 (08:08):
Oh my god, I would be like I've made it,
like I have you, I wouldn't. I feel like I
would be the least stress for human in the world.
Speaker 1 (08:16):
Oh really, So are you telling me that at a
certain number you stop worrying about money?
Speaker 2 (08:20):
I think so?
Speaker 1 (08:21):
Did you hear what I just said for the last
two minutes?
Speaker 2 (08:23):
I know, I know, I know, I know.
Speaker 1 (08:24):
If you don't feel good about money today, you're not
going to feel good about it when you have double
or triple the money. Here's why, in order to deliver
a rich life, you've got to do two things. Number one,
you got to know your numbers cold, and I suspect
that when you see this number on the page and
you're paying out all this stuff, you're just looking at
(08:45):
what's given to you, and you maybe don't have a
holistic view of what's your net worth, how much is
it going to compound to how much you're going to
have in five years, all that stuff, so you're just
looking at these tiny little details. The second thing is
that you've also got to work on your money psychology.
We all do, which is, you know, some of us
feel scarcity. Some of us are overspenders, but we rarely
(09:08):
actually work on that at all. We just tell ourselves
if I make more money, I'll feel good. And I
hate to tell people that just changing the numbers is
not going to change your feeling.
Speaker 2 (09:20):
So what do I do?
Speaker 1 (09:23):
Well, let's let's start. Let's take them each one by one.
Let's start with the numbers. When you look at the numbers,
you're seeing what how much is in your checking account?
Speaker 2 (09:32):
I see checking touring account, I see my investment accounts.
Those ones scare me all the time because I'm like,
oh my god, I lost this much on that, which
I know it's the long game with those, but it's
still but I always go to the total. And then
that's where I call my business manager every month, going
wait a minute, why did I not make any money
(09:53):
that month? And he's like, well no, He's like, you
lost in the investments and so that then and I'm like, well,
so then that's just starts to spiral me too. But
then if I what I, then this is how psycho am.
I then go back to six months or a year
ago and go, okay, it has gone up. So I
have to like I have to see the comparison like
the previous and then where it's at.
Speaker 1 (10:14):
Wait, I don't think you're psycho for doing that. I
think you're really smart for doing that.
Speaker 2 (10:17):
Okay, thanks, it's smart.
Speaker 1 (10:19):
You're trending it out. You're seeing, you're taking a look
at where you are today, and you're saying, Okay, that's interesting,
that's a snapshot of today. But I really want to
understand what's happened over the last year. Yeah, to understand
what it looks like. I think that's really smart.
Speaker 2 (10:34):
Okay, Well, because that helps me not freak out as much.
Speaker 3 (10:38):
Yeah.
Speaker 1 (10:50):
Can I ask you a question about your investments and
all that? Do you think it's possible for you to
feel good about your money?
Speaker 2 (10:56):
What do you mean?
Speaker 1 (11:01):
I think you kind of just answered my question, like, okay,
Like take me for example, Okay, okay, do you think
that I'm freaking out about my money?
Speaker 3 (11:10):
No?
Speaker 2 (11:10):
Because this is your job. This is what you do.
Like you are at the like you help people become rich.
I think with my industry in my life, it's like
I I look at it as the most unstable business ever. Yeah,
and where it's I feel like with you, it's like, oh,
he could be building I'm sure you've got courses and
you've got your Netflix show and you've got books, and
(11:31):
it's like that's people will always want to know how
to be rich. People are going to get people are
and will continue to get bored of me. It's kind
of like my mindset.
Speaker 1 (11:41):
What you're like, you're pretty big. I mean, come on,
I did my homework. It's not like you're just starting out.
Your people want to listen to you.
Speaker 2 (11:49):
But I'm like, there will be a day when I'm
not going to be the you know, number one on
this movie. I'll be the old lady that's, you know,
the grandmother of the you know. So it's like I
have to be so smart right now because my window
is like you know, is closing in certain areas of
my life. So I'm like, I always have to recreate
and be Okay, what's going to be like my my
(12:11):
my generator of money because I acting doesn't pay enough.
Speaker 3 (12:15):
This is it.
Speaker 2 (12:15):
So it's like I just need it for what I
have been accustomed to, right So I just am like
I have to find that thing and it's hard when
it's like there's so many different pieces.
Speaker 1 (12:27):
Yeah, makes a lot of sense. Do you have a
sense for how much you need.
Speaker 2 (12:36):
Yes, here's where the wrench goes in. I bought at
the wrong time.
Speaker 1 (12:41):
My house a house.
Speaker 2 (12:43):
My house is done being built in September. But I
sold my house at the wrong time and I bought
at the wrong time. So that was a little bit
of a hit interest rates. I know they're going to
go back down, but when you know, I got the
call of how much I'm paying a month, it's like
I'm getting a minivan, Like, Okay, where am I going
to start cutting, you know, because I gotta cut. This
(13:05):
is way more than I'm used to paying. So I
think that's where I start to freak out a little bit.
And then just the load that I carry, like I
support my kids, I pay, I'm paying the child support,
like it's a lot of I was telling my fans
the other day, I'm like, I have so much pressure
to succeed and to provide that I'm like it can
(13:27):
make me cry, like I'm and at the time, I
was like, you know, I've always felt the pressure to
financially provide, and I'm freking exhausted.
Speaker 1 (13:36):
Yeah, I hate hearing that. I hate it because it
sounds like money is not a source of joy at all.
It sounds like it's a burden, it's an obligation, and
worst of all, it's kind of just this murky cloud
where you don't even know where's the light. It's just depressing. Yeah,
(13:57):
am I reading that right?
Speaker 2 (13:58):
Pretty much?
Speaker 1 (13:59):
All right, we'll shoot like should we just change that?
Because this is depressing to me?
Speaker 2 (14:06):
And I want to say too, like I'm so grateful
for everything, Like I know that I have a beautiful
home and a beautiful life that I've created, but I
also feel like I'm still the girl stuck in you know,
like I'm stealing toilet paper from a restaurant because I
can't afford or I'm seeing the red that I moved
to Los Angeles, you know, trying to book a show.
(14:26):
So I want to say, I realize how grateful that
I am compared to people that may not have that income.
So that's where I that's where I struggle with the
battle of of of that, because I don't want people
to think I'm not grateful for what I have, because
I'm very grateful. That makes sense, Yeah, it does, Okay.
Speaker 1 (14:49):
I grew up with two immigrant parents. They came here
from India and they we had a great childhood. They
were a pretty family, and they had to be frugal
just because that's what they knew and that's what we
had to do. My dad worked, my mom was home
with us, and I think the lessons we learned were
(15:09):
really valuable in terms of we don't need a lot
of fancy stuff to have a happy family. Our vacations
when we took them were quite modest. You know, We're
get in a minivan and drive down California, stay with
our family. But I also think that as I went
to college and became more successful with my business and
all that stuff, I leaned on what I learned as
(15:32):
a kid, but I also had to create some new
routines and new ways of thinking about money. And I
bet if we spent more time, for example, on my
podcast with the couples that I bring on, we would
dive more into what do you remember about growing up
with your parents? What kind of phrases did they say?
How does it still affect you. I mean, we can
(15:52):
hear a couple like the word freaking out. That's an
interesting word. I want to know more about that. But
I also think you became so success that there's probably
some new layers for you to put on, almost like
a new layer of a coat to put on, which
is just acknowledging, Hey, I'm actually pretty good at this.
I'm pretty successful. I actually can take on a bigger
(16:16):
burden than I used to do when I was a
little girl, And I think that would just allow you
to feel stronger. Which is my belief is I never
tell people stop being emotional about money. Money is emotional.
I'm emotional about it. We're all emotional about it. I
would rather we stay emotional, but also learn how to
read the numbers and talk about the basic rules of money,
(16:40):
and then we work on feeling the way we want
to feel. Sometimes we're going to feel bad, that's okay,
But I would say most of the time I want
people to feel good about money, Like ninety percent of
the time, I think we should feel good. Even if
we have seventy five thousand dollars of debt, we can
still feel good because we have a plan in place,
and we know the exact month and year that debt's
going to be paid off. If you were able to
(17:02):
do that, what do you think if you knew when
you would have let's say five hundred thousand or a
million or ten MILLI or whatever the number is for you,
if you knew that your kids would be able to have, yeah,
all the things they need taking care of. Do you
think your feelings might change? Yeah?
Speaker 2 (17:17):
And that's what I told I was talking to my
acting manager. I was like, listen, because a lot of
actors don't want to be on a procedural because it's
not creative enough. And you know those shows run for ten,
you know, eight ten years, and it's just the same thing.
I go, that is my dream job because I would
be doing something that I love to do, and I
(17:39):
know that I'm going to have a role for potentially
eight to ten years, a paycheck that I know is
going to come every single month. I think it's the
not knowing is the part where I start to freak out.
And it hasn't been a you know, a great year,
and there have been more you know, losses than wins
this year, and so I think when I have that
(17:59):
burden to it becomes stressful. And you know, if I
had something in my mind where I was like, Okay,
I know I'm gonna make this, like I would be
able to breathe a little bit better.
Speaker 1 (18:10):
I totally get it. The Uncertainty is a killer, like
in anything, uncertainty in a relationship, uncertainty with money or jobs.
Let me let me provide a couple of I think
helpful numbers that might be useful to you. Okay, So,
first of all, I'm not a fan of budgets, and
I certainly don't I'm not going to get on here
and tell people, you know, stop spending so much money
on potatoes, Like, I don't care about that. It's a
(18:32):
waste of time. And I would rather people ask thirty
thousand dollar questions than three dollar questions.
Speaker 2 (18:39):
Although eggs are very expensive right now.
Speaker 1 (18:42):
I don't care about the price of eggs, and really.
Speaker 2 (18:45):
Like, Janna, you're so cheap. I'm like, no, we're getting chickens.
These eggs are way too expensive. He's like, you can
afford eggs. I'm like, I know it, just like I get.
Speaker 1 (18:51):
On, no, Janna, listen, listen my mouth. Stop asking three
dollars questions thirty thousand dollar questions. Okay, all right, all right,
So you know a lot of us we've been taught,
it's been drilled into us. Don't buy coffee, don't buy
a lot of tes, blah blah blah.
Speaker 2 (19:10):
Yeah, you'll say these this made dollars thousand dollars a year.
If you don't buy a.
Speaker 1 (19:13):
Nine hundred years, you're living in a cave, you're a skeleton,
and you'll have one million dollars. I go that life sucks.
So I believe in asking some five to ten big questions.
All right, and those are the ones. You get those right,
You could buy all the coffee and cheesecake you want.
So first off, just we need to know four numbers
when it comes to our own basic numbers, right, Almost
(19:35):
nobody knows this. First off, fixed costs. I would recommend
that your fixed cost be between fifty to sixty percent
of your take home pay. Let me explain what I mean.
Speaker 2 (19:46):
What is a fixed cost?
Speaker 1 (19:48):
Fixed costs includes your rent or your mortgage, your utilities,
your car payment, your groceries, your debt payment, anything that's
fixed that you're paying every single month. Okay, kids, school fees, all.
Speaker 2 (20:02):
That fifty to sixty percent fixed cost.
Speaker 1 (20:05):
Of your take home pay.
Speaker 2 (20:06):
That's after your take I'm taking notes home pay. Okay, cool, all.
Speaker 1 (20:11):
Right, so that's fifty to sixty percent. I'm just gonna
tell you right now, people go wrong in two areas,
and it is their house and their car. That's that's it.
They spend too much on their house, they spend too
much on their car. We could talk about that if
you want to. Next up your investments, okay, five to
ten percent of take home Of course I want to
(20:31):
see that number higher. But this is where the real
wealth is created. Okay, you know how many people spend
their entire lives tracking the price of turnips. I go,
who gives a shit, It doesn't matter. Stop talking about this.
You don't even need to track it at all. But
you do need to make sure that you are hitting
your ten or fifteen percent investments that will create massive wealth. Okay,
(20:55):
it's more important than any coffee decision you make commutatively,
cumulatively over your life.
Speaker 3 (21:00):
All right.
Speaker 1 (21:00):
Next up your savings, five to ten percent. This is
things like an emergency fund, saving for a down payment,
saving for a new car, that kind of stuff, all right.
And then finally, this is my favorite one, guilt free
spending twenty to thirty five percent of your take home pay.
That's a lot, Yeah, it's a lot of money.
Speaker 2 (21:23):
Right, Why not save it? Why wouldn't you say save that?
Speaker 1 (21:27):
Well, why don't you tell me when was the last
time you ate out.
Speaker 2 (21:31):
Well, i'm pregnant, sister sick. But no, I mean I
door dashed some wings yesterday.
Speaker 1 (21:37):
Thank you very much. Why don't you just make those
wings at home? It's because we want to live a
rich life today and a richer life tomorrow. Now, if
you were super disciplined, for example, and you go, hey,
I want to retire at whatever age, early age, you
might say instead of twenty percent, I'm gonna do fifteen
percent guiltfree, I'm gonna take the extra five percent and
invest it. Fine, I don't mind it. But you know,
(22:00):
these people, they actually want to spend money on the
things they love. I know you do. I do too,
But it's all within a plan. And if you just
do those four numbers, just those four you never have
to count the price of lattes, and actually you will
be accumulating serious wealth over the long term.
Speaker 2 (22:18):
Okay, So the investment, though, I'm curious the ones that
I have, like one that's kind of aggressive, one that's
just sitting there, that's going to be like a slow
what kind of investment they do? Do you agree with
those kind of different portfolios or is there one where
you're like, no, go aggressive go hard.
Speaker 1 (22:34):
Like, yeah, okay, So obviously this depends on a lot.
But I'm gonna tell you how what I tell my
family when they ask. So investing feels so confusing to people.
All right, it is so overwhelming. There's all these terms.
Nobody understands. What's the difference between apple stock and a
four oh one K. I'm like, uh, those are two
(22:56):
different animals. But let's work through it. When my family
goes where should I invest, here's what I tell. My
favorite investment for the everyday person is something called a
target date fund. And let me tell you what that means.
It's one fund, just one, and the year in the fund,
like Vanguard twenty and fifty or Fidelity twenty and fifty five,
(23:18):
that's the year that you're going to retire. So let's
pretend that I'm going to retire ballpark in twenty fifty.
Let's just say I would go find the Vanguard or
Fidelity or Schwab two thousand and fifty fund. They're all
pretty good. You can check the fees and stuff. I
cover this in chapter six and seven of my book,
and I'm not compensated by any of these companies, and
(23:39):
you can go you get one fund and you put
as much money as you can into it. Now, why
why is it called a target date fund? Because as
you're younger, it's pretty aggressive. You should be able to
handle that aggressive investment allocation. As you get older, it
becomes a little bit more conservative. In other words, you
don't want granny losing forty five percent of her investments
(24:02):
in a recession. Sure, that's it. You don't have to
rebalance it, you don't have to check it every day.
In fact, you shouldn't even be checking your investments more
than once every three to six months. And it's automatic.
That's the key thing of this whole thing. You're not
trying to save money every month. You're not trying to invest.
It's totally automatic. That is what I insist on.
Speaker 2 (24:21):
Okay, and then ten to fifteen percent of the money
that you make should go to investments.
Speaker 1 (24:27):
I would love that.
Speaker 2 (24:28):
Yeah, Okay, I'm I'm gonna be like CC my business major. Okay, Yeah,
So can I ask a question about bitcoin? Are you?
Are you not allowed to say that? Because I know
some people aren't allowed to talk about bitcoin.
Speaker 1 (24:42):
Who's going to not allow me to say anything? I
run my own business? Oh?
Speaker 2 (24:45):
There, you go. So I have money in bitcoin. Should
I take it out because it's not doing anything? Or
should I keep it in?
Speaker 1 (24:51):
First of all, how much do you have? Please tell me?
Speaker 2 (24:53):
They answer, well, okay, so I have one bitcoin and
at the time it was thirty to go in for
one bitcoin, so I have thirty. But now it's down
to like, I think twenty something. It was up to
like sixty at one point, and then I should have
taken it out, but I didn't because they're like, it's
a low. It's it's a long game, long game.
Speaker 1 (25:11):
I told you this. By the way, my manasuer, Oh
my god, is your business manager going to listen to this?
I hope not, because I don't really have nice things
to say about that. But okay, okay, let me put it.
Speaker 2 (25:26):
Because I don't want to lose, because right now is
at like twenty three, so I'm like, I'd like to
take it out because I don't want to lose twenty
three when I've already lost seven or whatever.
Speaker 1 (25:34):
You seem very sensible, But I talked to a lot
of bitcoin freaks on Twitter. Okay, they don't like me
because I actually understand investing, and here's my approach. I say, look,
if you have a well diversified portfolio, okay, and you
decide everything's diversified. I maxed out my accounts. You know what,
(25:57):
I want to have a little fun. I want to
take five percent of my money and I want to
invest it in alternative investments like bitcoin or my friend's
bar in Brooklyn. I say, God bless you, go for it.
Speaker 2 (26:08):
Okay.
Speaker 1 (26:09):
The problem is that literally every single person I've talked
to who invests in bitcoin doesn't even know what diversification is.
So if we looked at your portfolio, which I would
love to do, I have a sneaking suspicion that it
might not be diversified. That's just a guess. I don't know.
I'm not going to question anybody else. If that's the case,
(26:30):
I would I mean, that's really up to use in
terms of your goals. If it were me and I
were sitting here with twenty k in bitcoin and a
non diversified portfolio, personally, I would take that money, I
would sell it, and I would get my portfolio in
order so it's well diversified. That's what I would do.
But it all depends on your goals and what. You know,
(26:50):
what you decided to do, right.
Speaker 2 (27:04):
Can we like talk offline too? Because now I'm like,
I want to send you everything.
Speaker 1 (27:07):
And I'm like, I just talk to online. People want to.
Speaker 2 (27:10):
Know, well, they do so they can hate on me.
That's that's that's their favorite thing. Because they were like,
I'll never forget when I got so my lease of
my Range Drover was up, and so in my mind,
they're like, you can keep this. This is this is
this is a perfect example of who who I am
so in money wise, So my Range Drover lease was up.
Speaker 1 (27:33):
It was like much was it?
Speaker 2 (27:34):
It was a three year lease. It was just a
sport like whatever eighty I have no idea. I don't
I like to lease cars. I'm not a buyer, like
I get sick of things. So I just you know,
I'm a lease so I wish I would love your
take on that. But leased it and then the new
cars weren't ready yet, and so they said it'd probably
(27:54):
probably be like a couple of years, so you can
keep the car. And I was like, well that means
that you have a demand then, so you need my
car back. So I'm like, would you like to buy
my car back? Even though it's a lease, And They're like, yeah,
we'll write you a check for this amount. So then
in my mind I go, perfect, I'm gonna I'm going
to give you back my lease and I'm actually going
(28:14):
to get money, which has never happened before on a lease.
But thank you for the check. Now I'm going to
go get a less expensive car to save money for
the next two years until my other car comes.
Speaker 1 (28:25):
Okay, I'm with you so far. Interesting strategy. Here's my
one question, Kay, what did you do with the difference?
Speaker 2 (28:33):
The difference I held onto it for a down payment
for the next car?
Speaker 1 (28:37):
Okay, all right? Not bad, not bad, not bad. That's
that's better than most people be like I went to
Chipotle and spent it.
Speaker 2 (28:45):
I'm like, yeah, says a down payment. So then what
I did was I went and bought a Wrangler. And
everyone of them was like, she's broke, she's losing her money,
she had to sell her. I was like, no, I
just wanted to save eight hundred bucks a month on
a car payment, so I went and got a wrangler.
Speaker 1 (28:59):
You listen to the people who accuse you of being broke,
does it affect you?
Speaker 2 (29:03):
There's like, I'm not going to say negative comments don't
affect me, Like, sure it affects me, you know, I haven't.
You know, some businesses didn't work out and it hurts
and I feel like a failure. So when people highlight it,
sometimes it's like it Onlygnight's like, oh I am a failure.
I know I'm not. I know people have to take
chances in business, and some things work and some things don't.
(29:25):
Having said that, though, you know, sure it can affect
but I know, I'm like, and hey, a Wrangler's a
great car. So I was like a calm a business tch.
I'm like, I'm saving money. I'm so excited, and he's like,
you're my favorite client.
Speaker 1 (29:38):
And then I love that.
Speaker 2 (29:39):
But now I'm like, listen with what I'm paying for
my house. Now I feel like i'm you know, it's
it's a lot more than my last house, and I'm
starting to feel the stress and the pressure of that.
So at this point, I'm like, what's wrong with him? Anivan?
I don't care what I drive. It's a car. It
gets me from A to B. I don't care. Like
my dream was a g wagon. I wanted one so bad.
And when my ex and I were married, he was like,
(30:01):
when we pay off his car, I can get my
dream car. So I paid off his car, and then
now I'm paying him child support. So my child support
is my g wagon payment. So I'm like, well, there
goes that. That's up in flames. But now I'm like,
I would never spend that much money on a car anyways,
Like why would I do that? So now in my mind,
I'm like, I don't care. And if people are gonna
(30:22):
talk crap about me driving a minivan or whatever, it is,
like who cares?
Speaker 3 (30:27):
Good?
Speaker 1 (30:28):
Two things I want to say, First off, yeah, uh
I kind of. I love when people like they're like, oh, REMI,
why do you do that? That doesn't make any sense?
And a car is the perfect example for me because
I could afford any car. I happen to love my
seventeen year old Honda Cord yes Christine condition. Of course Indians,
(30:52):
you know we love Hondas and Toyotas, And it's just like,
why would I get something? Of course I could get
something nice in you, but hardly drive anywhere. But you
contrast that because that's a part of my life that
I don't really care about, okay, versus the parts I
do care about. I love hotels. I love fitness, I
(31:13):
love clothes, and so those are the things where I
spend extravagantly on the things I love, but I cut
costs mercilessly on the things I don't. And that's what
I actually encourage everybody to do, so rather than what
we normally do, which is like we feel guilty about everything,
and then we try to cut five percent back on
(31:34):
Cheetos and five percent back on coffee and five percent
back on It's like that sucks. Pick the things that
you love, go through some of my exercises in my book,
figure out how you can actually spend more on them.
But you got to cut cost mercilessly on the things
you don't.
Speaker 2 (31:50):
So like for a car, I wouldn't care.
Speaker 1 (31:52):
Exactly, and yeah, you should actually feel great about that.
You're like, yeah, because I'm living my rich life with
whatever else you're spending more on. Okay, my rich life
is not my car. I just don't care. Now. Second
thing I want to say is you took that money,
the difference you saved it for a down payment. Great.
Can I just make one suggestion going forward, sure, which
is I would love it for everybody listening and for
(32:15):
you to develop a really aggressive bias towards investing. Okay,
so for me, if I have extra money that I
don't need or I don't need it for certainly ten
plus years, that's getting invested. And again, that's where the
real wealth is created. And most of us, you know,
we don't think about that. Investments are kind of this
retirement thing that somebody else worries about. But that forces
(32:38):
us to play small. If we're only taking money and
transferring it from checking the savings, we're playing small. And
I don't want us to play small. I want us
to live a rich life, which is big.
Speaker 2 (32:49):
So that's an interesting point that you say, because it's
only been a couple of years that I've truly started
investing because I was so afraid that like the money
that I did make would go away, because you know,
markets fluctuate and then they go up and down, and
you know, you hear people say now that they're taking
their money out and you know, buy.
Speaker 1 (33:07):
Gold or don't listen to these crackpots by gold. Come on,
next time you get someone telling you that, just send
me the text or send me the I'd be like,
I'm gonna tell you eighty things wrong with this person.
And listen. I've listened to enough lunatics, crackpots talking about gold,
talking about silver. There's a guy online, he's very famous
personal finance author. One year ago he recommended, I swear
(33:30):
to god, I'm not making this up. He recommended everybody
by tuna literally tuna like tuna fish. You know, kids
eat tuna fish. That was his recommendation for an investment.
I go, why why would anyone listen to these crackpots? Okay,
investing is simple and boring. It's like watching paint dry.
It's not like I'm sitting here logging. Ooh, it's so cool.
(33:52):
My excitement. I'm like, get a dog, Okay, watch a drama.
Investments should not be exciting. You should not be checking
them all the time. They should be extremely boring. That's
real investing and that's real wealth creation.
Speaker 2 (34:06):
Okay, So for the people, because what's the percentage they
say that I'm living paycheck to paycheck? Isn't it? Is
it over fifty percent? Is what they've said a lot. Again,
I had to get to a certain amount where I
felt comfortable to invest. At what point? And even again,
it is no matter how much you're making, you still
(34:26):
think to invest the ten to fifteen percent.
Speaker 1 (34:30):
I think that everyone can find fifty dollars a month
to invest with rare exceptions.
Speaker 2 (34:36):
Yeah, okay, I think that's a great sorry point because
even like my brother, like he's just like, well, I can't,
I can't do this. I pay paycheck to paycheck. I'm like,
I know, but like, you got to start putting something
in there so it can start building.
Speaker 1 (34:48):
Here's here's why people find that difficult. First off, they
usually try to invest at the end of the month.
It's like I don't try to brush my teeth. It's
just a habit. You know how to do it every morning,
every night. Investing is even easier, so I don't try
to invest. The money comes directly out of my paycheck
and gets automatically invest. I'm not even seeing it. And
(35:10):
so many of us have gone twenty years telling ourselves, oh,
I can't, I have no extra money. There's no way.
The fact is, if you took fifty dollars or one
hundred dollars or five hundred dollars out of your paycheck,
depending on what it is, you would never miss it.
You would get completely used to not having it, and
that money grows to numbers that are for most people
very inconceivable. So making the decision to set up automatic
(35:33):
investing is probably one of the top five most important
decisions you can do in your entire life.
Speaker 2 (35:38):
That is such a good point. I love that. That's
hopefully people can hear that and take that. There was
an app called Acorns that kind of took Do you
like that one? Where I thought that was kind of
interesting where it takes fun, it rounds it up at
least there's something going. It's I don't think it's enough.
Speaker 1 (35:56):
But it's fine. I don't mind it. It's a fine app.
I personally don't use that. I use another, you know,
simple investment, which just happens automatically. But if that's what's
going to get you into investing, I don't have a
problem with it.
Speaker 2 (36:10):
So then basically the main thing is to get rich.
Speaker 1 (36:15):
It's invest well, it's designing your rich life, because we
have to remember that in America, most of us we
just think, like, what is rich. It's having a big
house in the suburbs, a car, two point five kids,
and then we go to Florida and die. It's like,
I don't that's not my rich life. But if that's
(36:36):
yours fantastic. I want people to get ultra specific about it.
For example, one of my readers he used my stuff.
He and his wife retired in their mid thirties and
they travel the country in an RV. Okay, I don't
want to get anywhere near an RV, but I love
that they have really dialed in their rich life. So
that's the first thing, is you know, you use my journal,
(36:56):
you get crystal clear, whether you're solo or with a partner.
What is it that we're working towards. Do we want
to travel two weeks a year, two months a year?
Do we want our kids to go to this activity?
It's worth getting specific. Then it's taking a look at
your four key numbers and making sure that your numbers
are actually matching up with your vision of a rich life.
And suddenly most of us, as we're listening and watching this,
(37:19):
we can realize why money feels so overwhelming because we
don't actually have a vision. We just feel like we're
doing something wrong and we need to cut back everywhere.
But there's no purpose to it. So it's like, if
there's no purpose, no vivid personal purpose, then if my
friends text me to go hang out or go to
Vegas or whatever it might be. Of course I'm gonna
(37:39):
be like, yeah, because I don't have a bigger north Star.
And that is what I want people to do. Design
your rich life and then use your money to live it.
Speaker 2 (37:47):
Okay, I like that too, All these little things they're
so good. One more thing on the house. What would
be your advice for someone that is, if however much
is in the bank or whatever, what should the cost
of their house be? Like, what's the percentage of that.
Speaker 1 (38:03):
Your total housing expense?
Speaker 2 (38:06):
Everything from electric everything.
Speaker 1 (38:09):
Yep, sprinklers.
Speaker 2 (38:11):
Sprinklers, those are really expensive, by the way, because I
just got irrigation, I'm like, nope, we're seeding and strawing
in my backyard. Thank you very much.
Speaker 1 (38:18):
And keep in mind this maintenance such as a eighteen
thousand dollars roof repair that's going to happen nine years
from now. It's not even on your radar yet, but
it's going to happen. You got to save for that.
All of that should be approximately less than twenty eight
percent of your gross income.
Speaker 2 (38:38):
Wait a second, so let's know.
Speaker 1 (38:40):
As you're calculating me, let me say something to everyone listening. Yeah,
everybody's freaking out right now, you're going to freak out
as you calculate that. Okay, look at that face. That's
what I thought. All right, hold on, don't tell me
the number yet, but I want to just I want
to give you one piece of comforting advice in high
cost of living areas like La New York, San Francisco,
that numbers almost impossible to hit, especially for young people. Yeah, now,
(39:05):
I don't mind stretching it a little bit. Okay. For example,
if somebody came to me, they go, remeet, I have
no debt. I stretched it to thirty two, maybe even
thirty four maybe. But I have to tell you that
the higher it goes, the less money you have for
everything else. And that is why people freak out about
the price of chips. It has nothing to do with
(39:25):
the price of chips. It's all because they spend too
much on their house or car.
Speaker 2 (39:27):
Okay, tell us where all of our listeners can come.
Just follow everything you're doing and everything.
Speaker 1 (39:34):
Okay, best thing is to start with my podcast. It's
called I Will Teach You to Be Rich. And this
is where I bring couples on. Some of them have
eight hundred thousand dollars of debt. They're not sure if
they can afford to have kids. Some of them are
about to get divorced because he's too cheap. They've been
married twenty one years and it turns out their net
worth is over ten million dollars. You can actually listen
to me talk to them and go through their financials.
(39:55):
My book I Will Teach You to Be Rich, and
my website and flick show it's out there. Search it out.
I'd love to have you in my community.
Speaker 2 (40:03):
You're amazing. I'm dming you in like ten minutes.
Speaker 1 (40:06):
Awesome. Talk to you.
Speaker 2 (40:07):
Thanks, friend to see you all right, all right bye
Wind Down with Janet Kramer, an Imheart radio podcast.
Speaker 2 (00:06):
He is the author of the New York Times bestseller
I Will Teach You to Be Rich, which has sold
over one million copies. He's been writing about money in
psychology for over twenty years. His podcast, I Will Teach
You to Be Rich features couples sharing real stories with
real numbers from behind closed doors. You can also find
him at www dot I Will Teach You to Be
Rich dot com. His book is again the New York
(00:27):
Times bestseller that taught a generation how to boost their income,
save money, and live a rich life, is now in
a revised second edition. He's a personal finance expert has
expanded his modern money classic for a new era with
a practical six week program designed to help readers develop
the skills and mindset necessary to manage their money effectively.
This updated edition is packed with new insights and strategies
(00:50):
for changing financial for a changing financial landscape. Start your
journey to a rich life today. Let's get a month. Hi.
Speaker 1 (00:59):
How's it going.
Speaker 2 (01:01):
I'm pretty good. How are you.
Speaker 1 (01:03):
I'm good. I'm good.
Speaker 2 (01:05):
Okay, I'm really excited to talk to you because I
come from a very I've mentioned this before on the podcast.
But I have such a scarcity mindset when it comes
to money, and I don't know if sometimes that actually
holds me back from making more money.
Speaker 1 (01:21):
If that makes sense, I'm sure it does. Okay, we
can talk about it. That's very insightful, already, very perceptive.
Speaker 2 (01:28):
Okay, well, good, good, good.
Speaker 1 (01:30):
Yeah. No.
Speaker 2 (01:31):
I grew up just a single mom and she you know,
I had to quit my favorite sport because my parents
got divorced and then couldn't afford it. And so in
my mind, I'm like, Okay, now that I have two kids,
one on the way, I'm like, I have to make
sure I don't spend anything and I and I have
to do a million different things because I have to
support them, and if I don't, then they have to
(01:51):
have to quit baseball or you know, soccer, and and
then I'm not what am I going to do? And
then where are they going to live? And then I
just start to like panic where I think I almost
overworking at times too, just because I'm throwing so many
darts trying to go, Okay, I need to make money,
I need to make money. And then I also I'm
not enjoying things too, like I bought myself my second
(02:14):
designer bag like two years ago. I will I will
not spend money.
Speaker 1 (02:22):
On wine.
Speaker 2 (02:24):
Then I will spend some money.
Speaker 1 (02:27):
Why okay? Wine or kids? Right right? Kids again? My kids.
Speaker 2 (02:30):
I'm like, oh, your soccer thing causes yeah, everything for
my kids.
Speaker 1 (02:34):
Yeah, okay, so let's go. It's super common. Yeah, it's
we'll talk about it. It's good.
Speaker 2 (02:40):
But yeah, So I mean, how I guess you know
your biggest teaching where you know I will teach you
to be rich is your book? And the second auditions
out what is the most common mistake that people make
in the efforts to becoming rich?
Speaker 1 (02:55):
Well, the most common thing people do is they just
don't tackle their money at all.
Speaker 2 (03:00):
They wu in which sense they don't.
Speaker 1 (03:03):
Engage with their money. You know how many people will
reach out to me and they'll go, I'm forty years old,
i have two kids. I feel so behind with money.
I'm worried, and I go, okay, we can work with that.
When was the last time you read a single book
about money? And they're like, I don't read books about money,
(03:25):
And I'm like, okay, well that actually explains a lot.
Most of us. We glean the way that we treat
money just by absorbing it. It's what our mom and
dad said when we were growing up. Usually things like
we can't afford that, we don't talk about money in
our family. Money doesn't grow on trees. And then we
take that and we see our friends going around and
(03:45):
we go, how come there and bora bora on a Tuesday,
And I'm not. So we never actually learned the basics
of money. So that's the biggest mistake is we're going
through life agonizing over this thing that holds so much
control over us, and we never actually learn the basic
rules of it.
Speaker 2 (04:02):
That's a really good point because anytime anytime my business
manager calls me, I get, I want to throw up,
I get. I'm just like, oh God, Kevin, I hate.
I hate when you call because he's always saying I
got to pay someone like my ex husband child supporter,
I gotta pay this, or I gotta pay you know
this this person, And I'm like, I just he's he's
my dwindling. Like every time he calls, I'm like, do
(04:23):
you ever have good news for me? Like, no, you never.
It's always like I gotta pay somebody, or I gotta
I gotta do this, or this person's trying to sue me.
Or I'm like, so I got to pay that lawyer
or whatever.
Speaker 1 (04:33):
Can I just ask you, do you see paying money
as losing.
Speaker 2 (04:38):
One million percent?
Speaker 3 (04:40):
Uh? Huh?
Speaker 1 (04:41):
You know, I don't see it like that.
Speaker 2 (04:42):
How do you see it?
Speaker 1 (04:44):
Think about when I go to a nice restaurant or
I love hotels. All right, I go to a nice hotel.
It's pretty expensive. I'm paying for the food or the experience.
Do you think I feel like I'm losing.
Speaker 2 (04:58):
No, because you're enjoying yourself.
Speaker 1 (05:00):
Yeah? Or what about you know I have people that
work for me. They're very talented. I pay them very well.
Am I losing when I pay them?
Speaker 2 (05:08):
No? Because they're helping invest in your company?
Speaker 1 (05:11):
All right? So's there's just you and I could be
paying the same amount to the same person, but we
might see it totally differently. And that's really at the
core of how we treat money. Most of us believe
money is just about some numbers on a spreadsheet, some
boring drudgery. I don't see it that way at all.
I look at somebody, I say, wow, you see a spreadsheet.
(05:33):
I see a trip to Disney World with your kids.
I see a beautiful handbag that you love every time
you pick it up. You know, I see the freedom
to maybe play with your kids on a weekday afternoon,
we can see it totally differently. That's because money is
not just about the numbers. It's also about how we feel,
and it's about our psychology towards it.
Speaker 2 (05:52):
And why is it so? Because whenever I get my
monthly statement, if it's not the certain number that I like,
then I will be in the most depressed state. And
then I'm just like, we're eating frozen tiketos for the
rest of the week.
Speaker 1 (06:07):
Let's just say for easy math, it's one hundred thousand.
If you see the number below that you start to
how did you describe it? Spin, Yeah, I just.
Speaker 2 (06:15):
Get really depressed. And then I'm just like, I bring
things closer, like okay, we got to tighten up here.
I can't spend here or and then I just start
to feel like my throat's closing up.
Speaker 1 (06:27):
And all right. I love the honesty. This is so common,
it's so calm, and it's not just you can I
ask a question, where did you come up with that number?
And what does it mean to you?
Speaker 2 (06:41):
I guess if that number was to be lower, it
would mean that I'm not successful, that I failed.
Speaker 1 (06:47):
Where did that come from? Is it in the dictionary
that under successful anything less than one hundred thousand means
you're not successful? No? Where did it come from? Though?
Speaker 2 (07:00):
Then I guess myself or I guess the oh people
are right, I'm I'm a failing this, or I'm no
longer al us this, sir.
Speaker 1 (07:11):
Yeah, I ask because a lot of times we all
have a feeling about our money, and a lot of
us believe if I just get five thousand dollars more
dollars five hundred thousand, finally I can relax. Finally I
won't worry right any of those things?
Speaker 3 (07:30):
Ever?
Speaker 1 (07:30):
Have you ever said any of those things?
Speaker 2 (07:32):
One million percent?
Speaker 1 (07:34):
And the truth is that the way you feel about
money is highly uncorrelated to how much you have in
the bank. I'll say it again because I want everybody
to make sure they get this. The way you feel
about money is extremely uncorrelated to how much you have
in the bank. So I've talked to couples on my podcast,
(07:54):
they come on, they share all their financials, and on
my Netflix show, and some of them have thirteen million
dollars in net worth and they are agonizing over the
price of a mattress.
Speaker 2 (08:08):
Oh my god, I would be like I've made it,
like I have you, I wouldn't. I feel like I
would be the least stress for human in the world.
Speaker 1 (08:16):
Oh really, So are you telling me that at a
certain number you stop worrying about money?
Speaker 2 (08:20):
I think so?
Speaker 1 (08:21):
Did you hear what I just said for the last
two minutes?
Speaker 2 (08:23):
I know, I know, I know, I know.
Speaker 1 (08:24):
If you don't feel good about money today, you're not
going to feel good about it when you have double
or triple the money. Here's why, in order to deliver
a rich life, you've got to do two things. Number one,
you got to know your numbers cold, and I suspect
that when you see this number on the page and
you're paying out all this stuff, you're just looking at
(08:45):
what's given to you, and you maybe don't have a
holistic view of what's your net worth, how much is
it going to compound to how much you're going to
have in five years, all that stuff, so you're just
looking at these tiny little details. The second thing is
that you've also got to work on your money psychology.
We all do, which is, you know, some of us
feel scarcity. Some of us are overspenders, but we rarely
(09:08):
actually work on that at all. We just tell ourselves
if I make more money, I'll feel good. And I
hate to tell people that just changing the numbers is
not going to change your feeling.
Speaker 2 (09:20):
So what do I do?
Speaker 1 (09:23):
Well, let's let's start. Let's take them each one by one.
Let's start with the numbers. When you look at the numbers,
you're seeing what how much is in your checking account?
Speaker 2 (09:32):
I see checking touring account, I see my investment accounts.
Those ones scare me all the time because I'm like,
oh my god, I lost this much on that, which
I know it's the long game with those, but it's
still but I always go to the total. And then
that's where I call my business manager every month, going
wait a minute, why did I not make any money
(09:53):
that month? And he's like, well no, He's like, you
lost in the investments and so that then and I'm like, well,
so then that's just starts to spiral me too. But
then if I what I, then this is how psycho am.
I then go back to six months or a year
ago and go, okay, it has gone up. So I
have to like I have to see the comparison like
the previous and then where it's at.
Speaker 1 (10:14):
Wait, I don't think you're psycho for doing that. I
think you're really smart for doing that.
Speaker 2 (10:17):
Okay, thanks, it's smart.
Speaker 1 (10:19):
You're trending it out. You're seeing, you're taking a look
at where you are today, and you're saying, Okay, that's interesting,
that's a snapshot of today. But I really want to
understand what's happened over the last year. Yeah, to understand
what it looks like. I think that's really smart.
Speaker 2 (10:34):
Okay, Well, because that helps me not freak out as much.
Speaker 3 (10:38):
Yeah.
Speaker 1 (10:50):
Can I ask you a question about your investments and
all that? Do you think it's possible for you to
feel good about your money?
Speaker 2 (10:56):
What do you mean?
Speaker 1 (11:01):
I think you kind of just answered my question, like, okay,
Like take me for example, Okay, okay, do you think
that I'm freaking out about my money?
Speaker 3 (11:10):
No?
Speaker 2 (11:10):
Because this is your job. This is what you do.
Like you are at the like you help people become rich.
I think with my industry in my life, it's like
I I look at it as the most unstable business ever. Yeah,
and where it's I feel like with you, it's like, oh,
he could be building I'm sure you've got courses and
you've got your Netflix show and you've got books, and
(11:31):
it's like that's people will always want to know how
to be rich. People are going to get people are
and will continue to get bored of me. It's kind
of like my mindset.
Speaker 1 (11:41):
What you're like, you're pretty big. I mean, come on,
I did my homework. It's not like you're just starting out.
Your people want to listen to you.
Speaker 2 (11:49):
But I'm like, there will be a day when I'm
not going to be the you know, number one on
this movie. I'll be the old lady that's, you know,
the grandmother of the you know. So it's like I
have to be so smart right now because my window
is like you know, is closing in certain areas of
my life. So I'm like, I always have to recreate
and be Okay, what's going to be like my my
(12:11):
my generator of money because I acting doesn't pay enough.
Speaker 3 (12:15):
This is it.
Speaker 2 (12:15):
So it's like I just need it for what I
have been accustomed to, right So I just am like
I have to find that thing and it's hard when
it's like there's so many different pieces.
Speaker 1 (12:27):
Yeah, makes a lot of sense. Do you have a
sense for how much you need.
Speaker 2 (12:36):
Yes, here's where the wrench goes in. I bought at
the wrong time.
Speaker 1 (12:41):
My house a house.
Speaker 2 (12:43):
My house is done being built in September. But I
sold my house at the wrong time and I bought
at the wrong time. So that was a little bit
of a hit interest rates. I know they're going to
go back down, but when you know, I got the
call of how much I'm paying a month, it's like
I'm getting a minivan, Like, Okay, where am I going
to start cutting, you know, because I gotta cut. This
(13:05):
is way more than I'm used to paying. So I
think that's where I start to freak out a little bit.
And then just the load that I carry, like I
support my kids, I pay, I'm paying the child support,
like it's a lot of I was telling my fans
the other day, I'm like, I have so much pressure
to succeed and to provide that I'm like it can
(13:27):
make me cry, like I'm and at the time, I
was like, you know, I've always felt the pressure to
financially provide, and I'm freking exhausted.
Speaker 1 (13:36):
Yeah, I hate hearing that. I hate it because it
sounds like money is not a source of joy at all.
It sounds like it's a burden, it's an obligation, and
worst of all, it's kind of just this murky cloud
where you don't even know where's the light. It's just depressing. Yeah,
(13:57):
am I reading that right?
Speaker 2 (13:58):
Pretty much?
Speaker 1 (13:59):
All right, we'll shoot like should we just change that?
Because this is depressing to me?
Speaker 2 (14:06):
And I want to say too, like I'm so grateful
for everything, Like I know that I have a beautiful
home and a beautiful life that I've created, but I
also feel like I'm still the girl stuck in you know,
like I'm stealing toilet paper from a restaurant because I
can't afford or I'm seeing the red that I moved
to Los Angeles, you know, trying to book a show.
(14:26):
So I want to say, I realize how grateful that
I am compared to people that may not have that income.
So that's where I that's where I struggle with the
battle of of of that, because I don't want people
to think I'm not grateful for what I have, because
I'm very grateful. That makes sense, Yeah, it does, Okay.
Speaker 1 (14:49):
I grew up with two immigrant parents. They came here
from India and they we had a great childhood. They
were a pretty family, and they had to be frugal
just because that's what they knew and that's what we
had to do. My dad worked, my mom was home
with us, and I think the lessons we learned were
(15:09):
really valuable in terms of we don't need a lot
of fancy stuff to have a happy family. Our vacations
when we took them were quite modest. You know, We're
get in a minivan and drive down California, stay with
our family. But I also think that as I went
to college and became more successful with my business and
all that stuff, I leaned on what I learned as
(15:32):
a kid, but I also had to create some new
routines and new ways of thinking about money. And I
bet if we spent more time, for example, on my
podcast with the couples that I bring on, we would
dive more into what do you remember about growing up
with your parents? What kind of phrases did they say?
How does it still affect you. I mean, we can
(15:52):
hear a couple like the word freaking out. That's an
interesting word. I want to know more about that. But
I also think you became so success that there's probably
some new layers for you to put on, almost like
a new layer of a coat to put on, which
is just acknowledging, Hey, I'm actually pretty good at this.
I'm pretty successful. I actually can take on a bigger
(16:16):
burden than I used to do when I was a
little girl, And I think that would just allow you
to feel stronger. Which is my belief is I never
tell people stop being emotional about money. Money is emotional.
I'm emotional about it. We're all emotional about it. I
would rather we stay emotional, but also learn how to
read the numbers and talk about the basic rules of money,
(16:40):
and then we work on feeling the way we want
to feel. Sometimes we're going to feel bad, that's okay,
But I would say most of the time I want
people to feel good about money, Like ninety percent of
the time, I think we should feel good. Even if
we have seventy five thousand dollars of debt, we can
still feel good because we have a plan in place,
and we know the exact month and year that debt's
going to be paid off. If you were able to
(17:02):
do that, what do you think if you knew when
you would have let's say five hundred thousand or a
million or ten MILLI or whatever the number is for you,
if you knew that your kids would be able to have, yeah,
all the things they need taking care of. Do you
think your feelings might change? Yeah?
Speaker 2 (17:17):
And that's what I told I was talking to my
acting manager. I was like, listen, because a lot of
actors don't want to be on a procedural because it's
not creative enough. And you know those shows run for ten,
you know, eight ten years, and it's just the same thing.
I go, that is my dream job because I would
be doing something that I love to do, and I
(17:39):
know that I'm going to have a role for potentially
eight to ten years, a paycheck that I know is
going to come every single month. I think it's the
not knowing is the part where I start to freak out.
And it hasn't been a you know, a great year,
and there have been more you know, losses than wins
this year, and so I think when I have that
(17:59):
burden to it becomes stressful. And you know, if I
had something in my mind where I was like, Okay,
I know I'm gonna make this, like I would be
able to breathe a little bit better.
Speaker 1 (18:10):
I totally get it. The Uncertainty is a killer, like
in anything, uncertainty in a relationship, uncertainty with money or jobs.
Let me let me provide a couple of I think
helpful numbers that might be useful to you. Okay, So,
first of all, I'm not a fan of budgets, and
I certainly don't I'm not going to get on here
and tell people, you know, stop spending so much money
on potatoes, Like, I don't care about that. It's a
(18:32):
waste of time. And I would rather people ask thirty
thousand dollar questions than three dollar questions.
Speaker 2 (18:39):
Although eggs are very expensive right now.
Speaker 1 (18:42):
I don't care about the price of eggs, and really.
Speaker 2 (18:45):
Like, Janna, you're so cheap. I'm like, no, we're getting chickens.
These eggs are way too expensive. He's like, you can
afford eggs. I'm like, I know it, just like I get.
Speaker 1 (18:51):
On, no, Janna, listen, listen my mouth. Stop asking three
dollars questions thirty thousand dollar questions. Okay, all right, all right,
So you know a lot of us we've been taught,
it's been drilled into us. Don't buy coffee, don't buy
a lot of tes, blah blah blah.
Speaker 2 (19:10):
Yeah, you'll say these this made dollars thousand dollars a year.
If you don't buy a.
Speaker 1 (19:13):
Nine hundred years, you're living in a cave, you're a skeleton,
and you'll have one million dollars. I go that life sucks.
So I believe in asking some five to ten big questions.
All right, and those are the ones. You get those right,
You could buy all the coffee and cheesecake you want.
So first off, just we need to know four numbers
when it comes to our own basic numbers, right, Almost
(19:35):
nobody knows this. First off, fixed costs. I would recommend
that your fixed cost be between fifty to sixty percent
of your take home pay. Let me explain what I mean.
Speaker 2 (19:46):
What is a fixed cost?
Speaker 1 (19:48):
Fixed costs includes your rent or your mortgage, your utilities,
your car payment, your groceries, your debt payment, anything that's
fixed that you're paying every single month. Okay, kids, school fees, all.
Speaker 2 (20:02):
That fifty to sixty percent fixed cost.
Speaker 1 (20:05):
Of your take home pay.
Speaker 2 (20:06):
That's after your take I'm taking notes home pay. Okay, cool, all.
Speaker 1 (20:11):
Right, so that's fifty to sixty percent. I'm just gonna
tell you right now, people go wrong in two areas,
and it is their house and their car. That's that's it.
They spend too much on their house, they spend too
much on their car. We could talk about that if
you want to. Next up your investments, okay, five to
ten percent of take home Of course I want to
(20:31):
see that number higher. But this is where the real
wealth is created. Okay, you know how many people spend
their entire lives tracking the price of turnips. I go,
who gives a shit, It doesn't matter. Stop talking about this.
You don't even need to track it at all. But
you do need to make sure that you are hitting
your ten or fifteen percent investments that will create massive wealth. Okay,
(20:55):
it's more important than any coffee decision you make commutatively,
cumulatively over your life.
Speaker 3 (21:00):
All right.
Speaker 1 (21:00):
Next up your savings, five to ten percent. This is
things like an emergency fund, saving for a down payment,
saving for a new car, that kind of stuff, all right.
And then finally, this is my favorite one, guilt free
spending twenty to thirty five percent of your take home pay.
That's a lot, Yeah, it's a lot of money.
Speaker 2 (21:23):
Right, Why not save it? Why wouldn't you say save that?
Speaker 1 (21:27):
Well, why don't you tell me when was the last
time you ate out.
Speaker 2 (21:31):
Well, i'm pregnant, sister sick. But no, I mean I
door dashed some wings yesterday.
Speaker 1 (21:37):
Thank you very much. Why don't you just make those
wings at home? It's because we want to live a
rich life today and a richer life tomorrow. Now, if
you were super disciplined, for example, and you go, hey,
I want to retire at whatever age, early age, you
might say instead of twenty percent, I'm gonna do fifteen
percent guiltfree, I'm gonna take the extra five percent and
invest it. Fine, I don't mind it. But you know,
(22:00):
these people, they actually want to spend money on the
things they love. I know you do. I do too,
But it's all within a plan. And if you just
do those four numbers, just those four you never have
to count the price of lattes, and actually you will
be accumulating serious wealth over the long term.
Speaker 2 (22:18):
Okay, So the investment, though, I'm curious the ones that
I have, like one that's kind of aggressive, one that's
just sitting there, that's going to be like a slow
what kind of investment they do? Do you agree with
those kind of different portfolios or is there one where
you're like, no, go aggressive go hard.
Speaker 1 (22:34):
Like, yeah, okay, So obviously this depends on a lot.
But I'm gonna tell you how what I tell my
family when they ask. So investing feels so confusing to people.
All right, it is so overwhelming. There's all these terms.
Nobody understands. What's the difference between apple stock and a
four oh one K. I'm like, uh, those are two
(22:56):
different animals. But let's work through it. When my family
goes where should I invest, here's what I tell. My
favorite investment for the everyday person is something called a
target date fund. And let me tell you what that means.
It's one fund, just one, and the year in the fund,
like Vanguard twenty and fifty or Fidelity twenty and fifty five,
(23:18):
that's the year that you're going to retire. So let's
pretend that I'm going to retire ballpark in twenty fifty.
Let's just say I would go find the Vanguard or
Fidelity or Schwab two thousand and fifty fund. They're all
pretty good. You can check the fees and stuff. I
cover this in chapter six and seven of my book,
and I'm not compensated by any of these companies, and
(23:39):
you can go you get one fund and you put
as much money as you can into it. Now, why
why is it called a target date fund? Because as
you're younger, it's pretty aggressive. You should be able to
handle that aggressive investment allocation. As you get older, it
becomes a little bit more conservative. In other words, you
don't want granny losing forty five percent of her investments
(24:02):
in a recession. Sure, that's it. You don't have to
rebalance it, you don't have to check it every day.
In fact, you shouldn't even be checking your investments more
than once every three to six months. And it's automatic.
That's the key thing of this whole thing. You're not
trying to save money every month. You're not trying to invest.
It's totally automatic. That is what I insist on.
Speaker 2 (24:21):
Okay, and then ten to fifteen percent of the money
that you make should go to investments.
Speaker 1 (24:27):
I would love that.
Speaker 2 (24:28):
Yeah, Okay, I'm I'm gonna be like CC my business major. Okay, Yeah,
So can I ask a question about bitcoin? Are you?
Are you not allowed to say that? Because I know
some people aren't allowed to talk about bitcoin.
Speaker 1 (24:42):
Who's going to not allow me to say anything? I
run my own business? Oh?
Speaker 2 (24:45):
There, you go. So I have money in bitcoin. Should
I take it out because it's not doing anything? Or
should I keep it in?
Speaker 1 (24:51):
First of all, how much do you have? Please tell me?
Speaker 2 (24:53):
They answer, well, okay, so I have one bitcoin and
at the time it was thirty to go in for
one bitcoin, so I have thirty. But now it's down
to like, I think twenty something. It was up to
like sixty at one point, and then I should have
taken it out, but I didn't because they're like, it's
a low. It's it's a long game, long game.
Speaker 1 (25:11):
I told you this. By the way, my manasuer, Oh
my god, is your business manager going to listen to this?
I hope not, because I don't really have nice things
to say about that. But okay, okay, let me put it.
Speaker 2 (25:26):
Because I don't want to lose, because right now is
at like twenty three, so I'm like, I'd like to
take it out because I don't want to lose twenty
three when I've already lost seven or whatever.
Speaker 1 (25:34):
You seem very sensible, But I talked to a lot
of bitcoin freaks on Twitter. Okay, they don't like me
because I actually understand investing, and here's my approach. I say, look,
if you have a well diversified portfolio, okay, and you
decide everything's diversified. I maxed out my accounts. You know what,
(25:57):
I want to have a little fun. I want to
take five percent of my money and I want to
invest it in alternative investments like bitcoin or my friend's
bar in Brooklyn. I say, God bless you, go for it.
Speaker 2 (26:08):
Okay.
Speaker 1 (26:09):
The problem is that literally every single person I've talked
to who invests in bitcoin doesn't even know what diversification is.
So if we looked at your portfolio, which I would
love to do, I have a sneaking suspicion that it
might not be diversified. That's just a guess. I don't know.
I'm not going to question anybody else. If that's the case,
(26:30):
I would I mean, that's really up to use in
terms of your goals. If it were me and I
were sitting here with twenty k in bitcoin and a
non diversified portfolio, personally, I would take that money, I
would sell it, and I would get my portfolio in
order so it's well diversified. That's what I would do.
But it all depends on your goals and what. You know,
(26:50):
what you decided to do, right.
Speaker 2 (27:04):
Can we like talk offline too? Because now I'm like,
I want to send you everything.
Speaker 1 (27:07):
And I'm like, I just talk to online. People want to.
Speaker 2 (27:10):
Know, well, they do so they can hate on me.
That's that's that's their favorite thing. Because they were like,
I'll never forget when I got so my lease of
my Range Drover was up, and so in my mind,
they're like, you can keep this. This is this is
this is a perfect example of who who I am
so in money wise, So my Range Drover lease was up.
Speaker 1 (27:33):
It was like much was it?
Speaker 2 (27:34):
It was a three year lease. It was just a
sport like whatever eighty I have no idea. I don't
I like to lease cars. I'm not a buyer, like
I get sick of things. So I just you know,
I'm a lease so I wish I would love your
take on that. But leased it and then the new
cars weren't ready yet, and so they said it'd probably
(27:54):
probably be like a couple of years, so you can
keep the car. And I was like, well that means
that you have a demand then, so you need my
car back. So I'm like, would you like to buy
my car back? Even though it's a lease, And They're like, yeah,
we'll write you a check for this amount. So then
in my mind I go, perfect, I'm gonna I'm going
to give you back my lease and I'm actually going
(28:14):
to get money, which has never happened before on a lease.
But thank you for the check. Now I'm going to
go get a less expensive car to save money for
the next two years until my other car comes.
Speaker 1 (28:25):
Okay, I'm with you so far. Interesting strategy. Here's my
one question, Kay, what did you do with the difference?
Speaker 2 (28:33):
The difference I held onto it for a down payment
for the next car?
Speaker 1 (28:37):
Okay, all right? Not bad, not bad, not bad. That's
that's better than most people be like I went to
Chipotle and spent it.
Speaker 2 (28:45):
I'm like, yeah, says a down payment. So then what
I did was I went and bought a Wrangler. And
everyone of them was like, she's broke, she's losing her money,
she had to sell her. I was like, no, I
just wanted to save eight hundred bucks a month on
a car payment, so I went and got a wrangler.
Speaker 1 (28:59):
You listen to the people who accuse you of being broke,
does it affect you?
Speaker 2 (29:03):
There's like, I'm not going to say negative comments don't
affect me, Like, sure it affects me, you know, I haven't.
You know, some businesses didn't work out and it hurts
and I feel like a failure. So when people highlight it,
sometimes it's like it Onlygnight's like, oh I am a failure.
I know I'm not. I know people have to take
chances in business, and some things work and some things don't.
(29:25):
Having said that, though, you know, sure it can affect
but I know, I'm like, and hey, a Wrangler's a
great car. So I was like a calm a business tch.
I'm like, I'm saving money. I'm so excited, and he's like,
you're my favorite client.
Speaker 1 (29:38):
And then I love that.
Speaker 2 (29:39):
But now I'm like, listen with what I'm paying for
my house. Now I feel like i'm you know, it's
it's a lot more than my last house, and I'm
starting to feel the stress and the pressure of that.
So at this point, I'm like, what's wrong with him? Anivan?
I don't care what I drive. It's a car. It
gets me from A to B. I don't care. Like
my dream was a g wagon. I wanted one so bad.
And when my ex and I were married, he was like,
(30:01):
when we pay off his car, I can get my
dream car. So I paid off his car, and then
now I'm paying him child support. So my child support
is my g wagon payment. So I'm like, well, there
goes that. That's up in flames. But now I'm like,
I would never spend that much money on a car anyways,
Like why would I do that? So now in my mind,
I'm like, I don't care. And if people are gonna
(30:22):
talk crap about me driving a minivan or whatever, it is,
like who cares?
Speaker 3 (30:27):
Good?
Speaker 1 (30:28):
Two things I want to say, First off, yeah, uh
I kind of. I love when people like they're like, oh, REMI,
why do you do that? That doesn't make any sense?
And a car is the perfect example for me because
I could afford any car. I happen to love my
seventeen year old Honda Cord yes Christine condition. Of course Indians,
(30:52):
you know we love Hondas and Toyotas, And it's just like,
why would I get something? Of course I could get
something nice in you, but hardly drive anywhere. But you
contrast that because that's a part of my life that
I don't really care about, okay, versus the parts I
do care about. I love hotels. I love fitness, I
(31:13):
love clothes, and so those are the things where I
spend extravagantly on the things I love, but I cut
costs mercilessly on the things I don't. And that's what
I actually encourage everybody to do, so rather than what
we normally do, which is like we feel guilty about everything,
and then we try to cut five percent back on
(31:34):
Cheetos and five percent back on coffee and five percent
back on It's like that sucks. Pick the things that
you love, go through some of my exercises in my book,
figure out how you can actually spend more on them.
But you got to cut cost mercilessly on the things
you don't.
Speaker 2 (31:50):
So like for a car, I wouldn't care.
Speaker 1 (31:52):
Exactly, and yeah, you should actually feel great about that.
You're like, yeah, because I'm living my rich life with
whatever else you're spending more on. Okay, my rich life
is not my car. I just don't care. Now. Second
thing I want to say is you took that money,
the difference you saved it for a down payment. Great.
Can I just make one suggestion going forward, sure, which
is I would love it for everybody listening and for
(32:15):
you to develop a really aggressive bias towards investing. Okay,
so for me, if I have extra money that I
don't need or I don't need it for certainly ten
plus years, that's getting invested. And again, that's where the
real wealth is created. And most of us, you know,
we don't think about that. Investments are kind of this
retirement thing that somebody else worries about. But that forces
(32:38):
us to play small. If we're only taking money and
transferring it from checking the savings, we're playing small. And
I don't want us to play small. I want us
to live a rich life, which is big.
Speaker 2 (32:49):
So that's an interesting point that you say, because it's
only been a couple of years that I've truly started
investing because I was so afraid that like the money
that I did make would go away, because you know,
markets fluctuate and then they go up and down, and
you know, you hear people say now that they're taking
their money out and you know, buy.
Speaker 1 (33:07):
Gold or don't listen to these crackpots by gold. Come on,
next time you get someone telling you that, just send
me the text or send me the I'd be like,
I'm gonna tell you eighty things wrong with this person.
And listen. I've listened to enough lunatics, crackpots talking about gold,
talking about silver. There's a guy online, he's very famous
personal finance author. One year ago he recommended, I swear
(33:30):
to god, I'm not making this up. He recommended everybody
by tuna literally tuna like tuna fish. You know, kids
eat tuna fish. That was his recommendation for an investment.
I go, why why would anyone listen to these crackpots? Okay,
investing is simple and boring. It's like watching paint dry.
It's not like I'm sitting here logging. Ooh, it's so cool.
(33:52):
My excitement. I'm like, get a dog, Okay, watch a drama.
Investments should not be exciting. You should not be checking
them all the time. They should be extremely boring. That's
real investing and that's real wealth creation.
Speaker 2 (34:06):
Okay, So for the people, because what's the percentage they
say that I'm living paycheck to paycheck? Isn't it? Is
it over fifty percent? Is what they've said a lot. Again,
I had to get to a certain amount where I
felt comfortable to invest. At what point? And even again,
it is no matter how much you're making, you still
(34:26):
think to invest the ten to fifteen percent.
Speaker 1 (34:30):
I think that everyone can find fifty dollars a month
to invest with rare exceptions.
Speaker 2 (34:36):
Yeah, okay, I think that's a great sorry point because
even like my brother, like he's just like, well, I can't,
I can't do this. I pay paycheck to paycheck. I'm like,
I know, but like, you got to start putting something
in there so it can start building.
Speaker 1 (34:48):
Here's here's why people find that difficult. First off, they
usually try to invest at the end of the month.
It's like I don't try to brush my teeth. It's
just a habit. You know how to do it every morning,
every night. Investing is even easier, so I don't try
to invest. The money comes directly out of my paycheck
and gets automatically invest. I'm not even seeing it. And
(35:10):
so many of us have gone twenty years telling ourselves, oh,
I can't, I have no extra money. There's no way.
The fact is, if you took fifty dollars or one
hundred dollars or five hundred dollars out of your paycheck,
depending on what it is, you would never miss it.
You would get completely used to not having it, and
that money grows to numbers that are for most people
very inconceivable. So making the decision to set up automatic
(35:33):
investing is probably one of the top five most important
decisions you can do in your entire life.
Speaker 2 (35:38):
That is such a good point. I love that. That's
hopefully people can hear that and take that. There was
an app called Acorns that kind of took Do you
like that one? Where I thought that was kind of
interesting where it takes fun, it rounds it up at
least there's something going. It's I don't think it's enough.
Speaker 1 (35:56):
But it's fine. I don't mind it. It's a fine app.
I personally don't use that. I use another, you know,
simple investment, which just happens automatically. But if that's what's
going to get you into investing, I don't have a
problem with it.
Speaker 2 (36:10):
So then basically the main thing is to get rich.
Speaker 1 (36:15):
It's invest well, it's designing your rich life, because we
have to remember that in America, most of us we
just think, like, what is rich. It's having a big
house in the suburbs, a car, two point five kids,
and then we go to Florida and die. It's like,
I don't that's not my rich life. But if that's
(36:36):
yours fantastic. I want people to get ultra specific about it.
For example, one of my readers he used my stuff.
He and his wife retired in their mid thirties and
they travel the country in an RV. Okay, I don't
want to get anywhere near an RV, but I love
that they have really dialed in their rich life. So
that's the first thing, is you know, you use my journal,
(36:56):
you get crystal clear, whether you're solo or with a partner.
What is it that we're working towards. Do we want
to travel two weeks a year, two months a year?
Do we want our kids to go to this activity?
It's worth getting specific. Then it's taking a look at
your four key numbers and making sure that your numbers
are actually matching up with your vision of a rich life.
And suddenly most of us, as we're listening and watching this,
(37:19):
we can realize why money feels so overwhelming because we
don't actually have a vision. We just feel like we're
doing something wrong and we need to cut back everywhere.
But there's no purpose to it. So it's like, if
there's no purpose, no vivid personal purpose, then if my
friends text me to go hang out or go to
Vegas or whatever it might be. Of course I'm gonna
(37:39):
be like, yeah, because I don't have a bigger north Star.
And that is what I want people to do. Design
your rich life and then use your money to live it.
Speaker 2 (37:47):
Okay, I like that too, All these little things they're
so good. One more thing on the house. What would
be your advice for someone that is, if however much
is in the bank or whatever, what should the cost
of their house be? Like, what's the percentage of that.
Speaker 1 (38:03):
Your total housing expense?
Speaker 2 (38:06):
Everything from electric everything.
Speaker 1 (38:09):
Yep, sprinklers.
Speaker 2 (38:11):
Sprinklers, those are really expensive, by the way, because I
just got irrigation, I'm like, nope, we're seeding and strawing
in my backyard. Thank you very much.
Speaker 1 (38:18):
And keep in mind this maintenance such as a eighteen
thousand dollars roof repair that's going to happen nine years
from now. It's not even on your radar yet, but
it's going to happen. You got to save for that.
All of that should be approximately less than twenty eight
percent of your gross income.
Speaker 2 (38:38):
Wait a second, so let's know.
Speaker 1 (38:40):
As you're calculating me, let me say something to everyone listening. Yeah,
everybody's freaking out right now, you're going to freak out
as you calculate that. Okay, look at that face. That's
what I thought. All right, hold on, don't tell me
the number yet, but I want to just I want
to give you one piece of comforting advice in high
cost of living areas like La New York, San Francisco,
that numbers almost impossible to hit, especially for young people. Yeah, now,
(39:05):
I don't mind stretching it a little bit. Okay. For example,
if somebody came to me, they go, remeet, I have
no debt. I stretched it to thirty two, maybe even
thirty four maybe. But I have to tell you that
the higher it goes, the less money you have for
everything else. And that is why people freak out about
the price of chips. It has nothing to do with
(39:25):
the price of chips. It's all because they spend too
much on their house or car.
Speaker 2 (39:27):
Okay, tell us where all of our listeners can come.
Just follow everything you're doing and everything.
Speaker 1 (39:34):
Okay, best thing is to start with my podcast. It's
called I Will Teach You to Be Rich. And this
is where I bring couples on. Some of them have
eight hundred thousand dollars of debt. They're not sure if
they can afford to have kids. Some of them are
about to get divorced because he's too cheap. They've been
married twenty one years and it turns out their net
worth is over ten million dollars. You can actually listen
to me talk to them and go through their financials.
(39:55):
My book I Will Teach You to Be Rich, and
my website and flick show it's out there. Search it out.
I'd love to have you in my community.
Speaker 2 (40:03):
You're amazing. I'm dming you in like ten minutes.
Speaker 1 (40:06):
Awesome. Talk to you.
Speaker 2 (40:07):
Thanks, friend to see you all right, all right bye
Host
Jana Kramer
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