How to Plan for Financial Success

How to Plan for Financial Success


vips you don’t want to miss upcoming episode I’m gonna talk to a caller who’s got a fiance that’s got some debt troubles and she wants to be able to help him and I’ve got to be able to guide her so she can help him but not try to do it for him also I’m gonna hit you with the did you know something that you maybe haven’t thought about the holidays are coming this was gonna help you and I’m gonna talk to a widower who just recently lost her husband but got some bad investing advice so I’m gonna have to guide her and help her to understand what she can do to help herself for the future don’t miss it make sure you tune in [Music] welcome to the Chris Hogan show home of everyday millionaires I am your host Chris Hogan remember VIPs this is your show where your life and your money takes center stage and as always don’t ever forget it’s your life take charge I’m excited to be back with you we are gonna walk through and talk to people that have real money questions or real situations that they need some guidance on and so guess what I’m here to help to be able to do what I can to be able to put people on the right path so they can get to their destination but here’s the deal I can’t have a show without you so what I want you to do is to make sure that you call me the number to call is eight four four two eight three nine three eight three again that’s eight four four two eight three nine three eight three or if you prefer you can send me an email the email addresses ask at Chris Hogan 360 dot-com would love to be able to hear from you well I’m going to dive in because I got a caller on the phone already I’ve got Stephanie calling in from Michigan Stephanie how are you I’m great how are you oh I’m fantastic it’s good to hear from you I love hearing your energy already on the phone how’s your day going it’s going great I’m so excited to talk to you well thank you young lady I’m excited to talk to you too all right tell me Stephanie what’s on your mind okay so my fiancee I’m just learning about his financial situation um it tends to be secretive at times but he has six thousand dollars in back taxes that he did not know about on his property taxes five hundred dollars in medical in collections expenses in his current scores five hundred and thirty four and I want that to go up so I’m trying to figure out how to help him okay all right no Stephanie tell me this how long have you been dating this young man a year oh okay all right so you all relatively new yes okay is he the one he is the one I’m 33 and they say when you know you know all right it does he know he’s the one Wow all right good well here’s the thing I I I think there’s you can definitely help him but I want you to hear me there’s a difference between helping and doing right Wow okay and I don’t want you to fall down that slippery slope because we can tend to want something so much for others that we forget that they’re the ones that have to make the decision for themselves and so is he working full-time he is working full-time and he’s on board we’ve had many discussions about finances and his upbringing did not allow him to learn about finances so he’s very very receptive okay did you grow up in a family Stephanie where you all talk your parents talked about money yes there was a lot of financial hardship so I go through the Orman book when I was fifteen and I started building my credit okay gotcha well and so there’s a couple things I want to talk about here so I think you know the number one thing you wanted to help him I think that’s important you’re talking with him well six thousand in back taxes and a five hundred dollar medical collection account is that all he owes yes he was fortunate enough to get a trust fund trust money from his grandparents so his house and truck is paid for okay God Jim so main thing he’s got to do is get on a set schedule with his insurance and the taxes right right okay so I think you talking him through and guiding him for some budgeting that can help but Stephanie we were doing good – you said something oh I know the one hair on my head started tingling you said build credit whoa Stephanie why do you answer this for me why would you want to build credit well my credits are 7:30 so I feel like you everything’s possible with credit good credit everything is possible with credit all right let’s talk about this do you have any debts yes student loan okay how much do you own student loan 82,000 okay and how long how old are you and 33 33 okay 82,000 student loans what else do you owe on I have four thousand dollars in credit card debt so I’m on baby step number two okay oh you use the key phrase baby steps oh you you know about what we teach I’m very yes I’m a big fan okay so you’ve got 4,000 credit card debt how anything else you on no I have a lease on my vehicle I’m sorry we we had some fuzz on the line I didn’t hear you Stephanie would you tell me about the vehicle I have a lease vehicle okay all right Stephanie yes how long have you been working on your job um I’ve been build my whole five years I’ve had a good career okay good and and so what’s your household income going to be this year about $100,000 okay good okay very very good so 4,000 a credit card debt how much do you owe on this lease I believe it’s $15,000 on my lease okay what kind of car is it it’s a GMC Terrain okay gotcha do you like this car I love it are you gonna buy that when you’re done yes sir okay all right good well and what I’m picking at you about is that whole mindset around credit you know I’m a former banker and and when I started to really understand how it is really all comprised it showed me something Stephanie it’s it’s based on how much debt you have how well you’ve paid the debt the type of debt that you have and the likelihood that they’ll give you more and so looking at this what I realized was wait a minute my credit score is not an indication of how well I’m doing financially it’s an indication of how well I’m doing with that does that make sense Wow and so it was just this iOpener for me and I realize I used to think I needed to build my credit score then I don’t know what I need to do is get out of debt and build my net worth and so what money gives me a difference so anyway I just you know as you’re talking to your fiance and I hope you guys are end up moving forward getting married attacking debt and living a happy life but I want you to just make sure you’re guiding him and teaching him on paying cash but more importantly that you attack this debt elf the four thousand in the credit card debt you can knock that out you make six figures girl you can get that out of your life and then we got to handle this lease situation right and then more importantly start to attack that student loan debt you’ve got a strong income you got a good heart I hear it now what I want you to do is start to live it day in and day out and don’t go backwards Stephanie thank you so much for taking the time to call in great to talk with you and you know I was just talking to Stephanie about making sure that we pay cash right like you you want to save up you want to do some things and it’s okay to do some stuff but we need to make sure that we do it with cash so we don’t end up having regret but I want to hit you with a did you know oh oh here it comes watch I’m gonna do the dramatic voice watch this did you know see I did that see what I did right there I’m gonna tell you something did you know ninety-five percent of every day millionaires plan ahead and pay cash ninety five percent you hear that and so you look at this and I’m bringing this up for a reason like listen we are beginning fall it’s here right we’re right smack in the dab in the middle of it but hold on let me blink right and flash-forward just a couple of months vips holidays are coming holidays they’re coming I know listen I know they normally move them around they don’t move you kidding me right Thanksgiving is gonna be in November and guess what Christmas is coming on December 25th I know I’m a fortune teller I can do this sometimes it doesn’t move right but inevitably well guess what happens people will wait and and all the sudden in November wake up panicked and they go oh my gosh christmas is coming well guess what we want to be aware and want to know what’s going on we want to look ahead but more importantly plan ahead that means start to set up some things in your budget right now where you’re saving up to be able to pay cash for Christmas gifts or holiday travel or whatever it might be because you’re thinking ahead I don’t want us to be surprised anymore don’t be surprised by the unsurprising bills I don’t even know if that’s worried but I said it I said it with confidence right what I mean let’s not be shocked by things we can plan for it and I think that’s really a matter of being goal-oriented being very very focused and knowing what’s going on so looking ahead knowing what’s happening start to talk about that as a family what’s the plan for the holidays is it your turn to go visit the in-laws or are they coming to you or whatever it is start to have those conversations so you can plan accordingly but here’s the thing that I like about this planning ahead allows you to be prepared it allows you to set aside money and know exactly what we’re gonna do but more importantly what you can’t do and I don’t think there’s anything wrong with saying no because when I hear no what I hear right is honestly not yet that means I’m gonna have to slow down I can’t do something until I’m ready to pay cash because when you pay cash I can guarantee you this there’s one thing you won’t be paying when you use cash and that’s interest because interest that you pay is a penalty I don’t want penalties in my life I want to be rewarded so I think it’s a really important thing to look at really be aware of and some of you you know you’ve written in you said Chris you know what I may be dealing with the car repair coming up here soon or this or that hey I want you to start to prepare for it in your budget set aside some money that’s gonna be for car repairs it’s okay right that you set that money aside and you know guess what when you need new tires or you need a new battery you’ve got money set aside you can do it and I think that’s one of the big differences for people that are focused and planning ahead versus people that are just kind of going with the flow we want to be intentional and most importantly we want to be prepared all right I got to get back to the phones I’ve got I’ve got Phyllis on the line in Kentucky so was how are you oh oh you’re very welcome young lady how can I help you today well my husband and I had planned to retire next year we had increased our 401k contributions and we were paying off debt so we wanted to go into retirement debt-free okay well last year my husband had a heart attack so now it’s just me and I am so paralyzed the Grace and fear I just didn’t know what today I finally got the courage to go to the bank calls out r21 account our checking account and they said well why do you have over sixty thousand dollars in your checking account now like ascetical what to do with it so they convinced me to get at least the short-term six-month CD and so I have the money in the see date well one of my friends told me about your show so on one of the do’s and dont’s I understand that CDs are on the don’t list so I don’t know what to do it’s money now yeah well Phyllis I’m gonna tell you this I’m gonna be glad to walk with you and to help you I just want you to first and foremost hear my heart goes out to you and I’m proud of you that you took some action and you reached out and you talked to some people I think the big thing is whenever you deal with with a loss like that you you want to make sure that you are being very very focused and and thinking ahead and I think it’s so important for us to work with people that have the heart of a teacher someone that can help and guide you and so are you working with an investment professional or is it just your bank okay so it’s at a bank and I want you to do something I I want you to gather up all the financial things and really start to make sure you get not just the one opinion but getting a second opinion as you get ready to move into this next phase of life you want to make sure you’ve got all your ducks in a row and you know we utilize Dave and I built a network of smart investor pros people that we trust and even if the person at the bank that you’re dealing with is somebody you want to deal with that’s fine I just would love for you to get a second opinion you know you’ve worked really really hard for this money and your husband did as well now it’s the time to make sure that this money lasts so I don’t like CDs just because it ties up your money and it doesn’t allow you to be able to get to it so as this money matures I would look at and we got to think do you have any debt outside of the home yeah okay and how do you how much know how much you owe on the home right now I’m so proud of you so you don’t have any debt the homes paid for how much do you have invested for the future in the 401ks and things of that nature Polly unless the president tweets again probably about a million okay oh okay all right so I’m talking to our everyday millionaire and so do you have an emergency fund set aside this is you do okay how much of that do you have set aside okay so you’ve got a good emergency fund so as this money mud tours in that CD what I want you to do is to really start to think about some things you might want to do and what I’m saying with that is Phyllis you might is there a a room in the home you’d like to renovate even young lady is there a cruise you’d like to take is there something you want to do for you and I think that’s really important I don’t know if you’ve got family near your friends but you started to think and it’s time to enjoy this you’ve worked hard you guys are everything your everyday millionaire you’ve got money and now what you want to do is make decisions long-term decisions starting to think about what do you want to do and that’s something that is a very empowering thing but it’s also it starts to open your eyes and you realize wow you do have options because you guys worked really hard to get to where you are and now you get to do some things and enjoy them and I want you to make sure that you do that for yourself that’s really important and I want you to stay plugged in to your church they plugged in with friends and definitely keep me in the loop Phyllis and if there’s anything I can do to help you please reach out let me know thank you very very much for your call you know looking at this I my heart goes out to people that have worked really really hard and I want people to make sure they’re getting the right advice that’s why you hear me get so passionate about making sure people are connecting with people that have the heart of a teacher it’s really important for me that people get the right information so they can make decisions for themselves and their financial future but listen I don’t know if you’ve ever done anything dumb with money or not I know I have I’ve made some bad decisions decisions I look back on I wish I could go back and fix again what there is no Back to the Future vehicle financially right what you have to do is get focus and get serious and I’m very passionate about helping people avoid mistakes but also how to clean them up financially and so our team created Financial Peace University just for that to help people to understand exactly what they need to do so they can win with money and be able to make better decisions and I’m excited to get a chance to be a part of that program along with Rachael Cruz and Dave Ramsey absolutely love it but I want you to hear me Financial Peace University is a proven plan that has helped over five million people did you hear that five million people to be able to get out of debt so they can build wealth and learn how to give so to join today I want you to go to Chris Hogan 360 comm /fp you again that’s Chris Hogan 360 comm /fp you and as always we’ll put a link in the show notes and those of you that are watching on youtube you can click on it and it’ll take you right there it is never too late to make some better decisions and to be able to grow financially well I also want to share with you an article and you know what I got to talk about this because I feel like Amanda my associate producers is giving me a hard time she printed the article for me and I promise you it’s fought 38 it’s it’s massive here but anyway here’s the article the article is three pros and cons of claiming Social Security early now VIPs you’ve heard me talk about this and I want I want to dig into this because I think a lot of people are getting some bad information without truly understanding all the way around kind of the penalties or fees that can be associated with it but here’s the article this is from where’s this article from it’s from The Motley Fool three pros and cons of claiming Social Security early it says should you take your benefits early here are the advantages and drawbacks to consider and so I’m just I’m going to tell you each of these number one if you take the money out early now I just want to call out typically you know full retirement age is 66 or 67 that’s the technical math side of it however people don’t know that you start to get Social Security draw on it as early as age 62 so you’ve got this window I tell people wait till age 70 just because I know the longer you wait the more money you’re gonna get right I mean that’s the reality but when what people don’t understand that timeframe of when to file so if you were to get it earlier these are the articles prose these are not Hogan’s is article all right that says if you take it out early you’ll get your money sooner yeah you’ll get money sooner but you’re not getting as much money you’re looking at a reduction of anywhere from gosh 25 to 35 percent that’s terrible it says if you take your money out early this is the article not me you get the options of enjoying your benefits when you’re young okay this is ridiculous it’s absolutely marketing I mean it’s all it is it says you’ll be able to have more energy to travel or pursue hobbies you kidding me okay anyway listen another one number three you’ll come out ahead financially if you don’t live a long life somebody actually put this in print you’ll come out ahead or financially if you don’t live a long life what in the world is wrong with people and here’s the case in point it says if you’re entitled to a monthly benefit of sixteen hundred at full retirement age 867 if you’ve pulled that money out by 862 your benefits will shrink by 480 dollars on a monthly basis yeah it’s almost $500 difference so it’s ridiculous but here’s the deal the Gulf’s article also goes through and tells you good reasons not to get the money early it says number one you’ll probably reduce your benefits for life there’s no probably to it yes you will right you don’t want to do that so you want to wait you’ll have benefits withheld if you’re still working bottom line is there’s an income limit that you can have if you draw Social Security so bottom line is is if you’re out of debt you’ve got an emergency fund and you’re enjoying what you’re doing why would you put limits on how much you can make you don’t want to do that you want to wait and it also says you know you also don’t want to take it out just because you’ll you’ll lose money over time which we know the bottom line is with this kind of information being I want to make sure that people know the reality that if you follow the plan that we teach you get yourself out of debt you build up an emergency fund you start investing you’re gonna have money to be able to live on so there’s no reason to start getting Social Security early to take a shrunk in the Mount when you know you’ve paid into it you know now a whole other ball of wax is will it even be there right it’s all a matter of if it’s gonna be solvent or not based on what our government is doing but that’s another topic for another conversation the bottom line is I want people to know the longer you hold off from pulling out Social Security the more money you’re gonna get in the long run so this is the article three pros and cons of claiming Social Security early this is from Motley Fool as always we’ll put a link in the show notes those of you that are watching on youtube you can click on it it’ll get you right to it but I want you to make sure you talk about this with your parents if you’re a millennial out there I want you to talk to your parents make sure they have this information and be able to share it so people can make the right decisions well listen if you’ve got a question or you’ve got a success story I want to hear from you then I’m gonna call us eight four four two eight three nine three eight three again that’s eight four four two eight three nine three eight three or if you prefer you can send me an email the email addresses asked at Chris Hogan 360 dot-com I definitely want to be able to hear from you all right I’ve got Samantha on the phone out in California Samantha how are you I am focused and not finished on lady how can I help you I just want to start off the thing thank you so much for taking my phone call this morning I have needed some money advice my husband and I are new to listening to you and Dave Ramsey and we sat down I turned Columbus and I sat down with my husband and we went over our budget and our goals for the next five years I’m in that budget we realized that we were way more in debt than we thought both in consumer cards student loans and that we wanted to start a family and be debt-free in five years okay all right so look at that snowball yet concern on you know you guys talk about paying off the smallest amount first and then working your way we have a credit card that is like a $36 minimum payments was a $1,200 balance so we also have one that’s twenty seven and a half percent interest that is just not making any progress so if you suggest paying off the smallest one first and then working on to our smaller car payment and then attacking that big credit card with a higher balance and higher interest rate or going full-fledged into the other one okay fantastic you know what I love Samantha that you guys have sat down and talked about this because it means you’re serious about it you’re very intentional and you know what it is so tell me again the debts that you owe so we have a total of fifteen thousand in credit card debts between three credit cards we have twenty two thousand and car payments and car loans and then I just went back to school so we have twelve thousand and student loan debt okay and are you back to are you still in school or are you done I I just started school and it’s a year-long program and I also just start working two jobs okay fantastic well I like the fact that you guys are talking about this as I said you’re very zeroed in bottom line is this we teach the debt snowball which is smallest to biggest and so it’s not about interest rate right because I mean let’s be honest Samantha if it was about interest rate we wouldn’t be in debt to begin with because interest that you pay is a penalty right interest that I earn is a reward so I would encourage you guys list them out smallest the biggest I don’t care about the interest rate I’m worrying about the size of the debt because when you get out of debt you gain momentum you start to gain confidence and yes we can do this we can do this but if you all are serious about this five-year plan there’s a few things I’m just going to put out there for you couple things need to happen number one you need to shut down those credit cards that means close them out stop using them don’t go there these cars look at them to see if you can sell them and get them out of your life so you can move forward you find a little thousand dollar or two thousand dollar car but I like the timeframe you’ve set out for yourself you got a five-year plan I know you guys can do this if you get focused and you really zero in and you work together on this plan and again we don’t want to go backwards so the main thing you want to know is is your audio does your video match your audio and what I mean by that is are the actions that you’re taking does it match the words you’re speaking because I want you to be able to get to that goal in five years so you can be able to start a family and move forward I know you can you just got a zero in on it and get serious thank you very very much for your call Samantha that is that’s a big deal okay I’m going back to the phone I’ve got let’s see here I’ve got Brenda on the line in Wisconsin Brenda how are you I’m great Chris thank you thanks for taking my call oh you’re very welcome how can I help you today well after divorce in 2006 that left me with 25,000 in debt I took SVU and was free and clear in about 18 months working three jobs so that was huge for me yeah now 13 13 years later with new husband and kids we’ve been working baby steps for five and six and cash flowing lots of extras in my life our lives I should say huge the only part of to you that I didn’t do 100% was cut up that every single credit card we have one that we charge everything to and pay it off every month and half for the last 12 years I’m afraid of identity theft and use the credit card as also to track my purchases for budgeting I understand the gimmicks of the companies so and I totally understand debit card use only but if I’m control with my credit card and make the one who have percent cash back on them anyway why would I need to cut that up gotcha and brother what’s the interest rate on that credit card um hi it’s like 16 percent so it’s like a typical credit card gotcha okay so it’s 16 percent and they’re gonna give you one and a half percent cash back correct but we never carry any balance I know I know and Brenda that’s the deal 98 percent of people out there don’t pay their credit card off each and every month and so you guys it sounds like you’ve you’ve lived this you’ve attacked the debt you know the bottom line is you can you could choose to do that with what as you wish I’ve got I’ve talked to people that have said Chris I keep on open it just enough I just I know the reality and you’ve lived through it you’ve paid off debt you know the deal I would I would close it out just because I don’t want if there’s not if you don’t have debt open then you can’t worry about your identity being being being stolen there’s identity theft protection out there to Brenda that you could get I know Sandra insurance offers that we have it here as a team as a benefit but here’s another thing if you’re absolutely done borrowing money meaning you’re not gonna apply for a mortgage or a refinance or anything like that you are done another option is called freezing your credit freezing your credit requires that you write letters to all the credit repositories to shut it down and nobody not even you can borrow in your name without unfreezing that credit so again you you do you all do with it as you will I like the fact that you’ve gotten yourself out of debt you’ve got an emergency fund and you guys are investing for the future that’s the key thing for me I want you to dream big you are a perfect example of someone that dealt with a life setback but you came back by being very focused and very intentional so Brenda thank you so much for your call VIPs if you’re out there I want you to hear me you know we’ve got an opportunity to make some differences in how we handle money to be able to break cycles and establish a new way of thinking what we have to do is get started and be serious about it and I want it listen I want to thank all the callers everyone for calling in I want to thank the entire Chris Hogan show production team thank you all all for what you do Amanda Eric Whelan everyone out there for plugging in and doing it and remember until next time don’t make excuses make progress

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