We Can All Save Another $100 | Series 7.6

Voiceover Audio: 00:00:00

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio: 00:00:03

podcast. The only podcast dedicated to making life more

Voiceover Audio: 00:00:06

enjoyable for young families by hitting on the financial topics

Voiceover Audio: 00:00:10

that tend to weigh on us, stress us out, and distract our focus

Voiceover Audio: 00:00:13

from simply enjoying life.

Joseph Okaly: 00:00:16

Hello, and welcome once again to the Enjoy More 30s

Joseph Okaly: 00:00:20

Family Finance podcast. We're talking to you today about the

Joseph Okaly: 00:00:26

next episode of this Raising Your Investment Mindset series

Joseph Okaly: 00:00:30

that we've been focusing on. Now, if you remember, this is

Joseph Okaly: 00:00:32

not about how to pick stocks better. This is not about how to

Joseph Okaly: 00:00:36

do any specific you know trading or timing. This is about trying

Joseph Okaly: 00:00:40

to help you reframe how you may view the scary unknown that is

Joseph Okaly: 00:00:43

investments as a whole and therefore be able to utilize

Joseph Okaly: 00:00:47

them in a more constructive way, better reach your goals, and

Joseph Okaly: 00:00:50

make life more enjoyable because of it.

Joseph Okaly: 00:00:53

As always, if you like what you're hearing, please make sure

Joseph Okaly: 00:00:55

to subscribe, follow us on Apple podcasts wherever you listen.

Joseph Okaly: 00:00:59

Star clicking, review leaving, it really really helps us reach

Joseph Okaly: 00:01:03

all those other young families out there that are just like you

Joseph Okaly: 00:01:06

that need help just like you.

Joseph Okaly: 00:01:08

Last week, we discussed how winners and losers so to speak

Joseph Okaly: 00:01:11

in our portfolios, so the pieces or funds that do really well or

Joseph Okaly: 00:01:15

do really poorly, are temporary more times than not. So "every

Joseph Okaly: 00:01:19

dog has its day" kind of thing. And so how to best emotionally

Joseph Okaly: 00:01:24

and more importantly practically deal with that. So if you

Joseph Okaly: 00:01:28

haven't checked that out yet that episode, definitely do that

Joseph Okaly: 00:01:31

soon.

Joseph Okaly: 00:01:32

Today's episode though, is titled We Can All Save Another

Joseph Okaly: 00:01:37

$100. Me too. Everybody out there can do that. Where we're

Joseph Okaly: 00:01:40

going to discuss how a little bit more is almost always

Joseph Okaly: 00:01:44

possible and just how far that little bit extra just a little

Joseph Okaly: 00:01:48

bit can take us. So the goal for today's episode, so the if you

Joseph Okaly: 00:01:53

can say this by the end of the episode, then you have succeeded

Joseph Okaly: 00:01:56

statement is "I better understand how impactful it can

Joseph Okaly: 00:02:01

be to consistently push my savings just a little bit

Joseph Okaly: 00:02:04

further." So "I better understand how impactful it can

Joseph Okaly: 00:02:08

be to consistently push my savings just a little bit

Joseph Okaly: 00:02:13

further."

Joseph Okaly: 00:02:14

For those people out there just like me who have ever tried

Joseph Okaly: 00:02:18

getting into a new exercise routine, pushing yourself

Joseph Okaly: 00:02:21

consistently could sometimes be let's say a bit of a challenge.

Joseph Okaly: 00:02:25

Maybe a lot, a lot of a challenge more times than not.

Joseph Okaly: 00:02:28

Getting up early to exercise, it seems like such a great idea the

Joseph Okaly: 00:02:32

night before, right? "I'm going to wake up. I'm going to feel

Joseph Okaly: 00:02:34

great. I'm going to get into it." But that's nighttime Joe

Joseph Okaly: 00:02:37

speaking and nighttime Joe doesn't have to worry about

Joseph Okaly: 00:02:39

getting up. Morning Joe makes quite the convincing argument

Joseph Okaly: 00:02:44

every single morning it seems like you just sleep, you know, a

Joseph Okaly: 00:02:47

little little bit longer.

Joseph Okaly: 00:02:49

In January 2018 though, my sister Lauryn passed away just

Joseph Okaly: 00:02:53

29 years old. During that year, I stopped playing soccer. That

Joseph Okaly: 00:02:57

was my lifelong thing and for basically how I got the majority

Joseph Okaly: 00:03:01

of my exercise was through soccer. And just injuries

Joseph Okaly: 00:03:04

building up so it felt like it was no longer fit for me. And so

Joseph Okaly: 00:03:08

I was looking for a new challenge. So I came across the

Joseph Okaly: 00:03:12

runs that take place in physically in Disney World. Run

Joseph Okaly: 00:03:15

Disney. And saw that there was a half marathon set up through the

Joseph Okaly: 00:03:19

parks that happened to be the day before my sister Lauryn's

Joseph Okaly: 00:03:23

one year anniversary of her passing. So to me, it seemed

Joseph Okaly: 00:03:27

like a sign from Heaven. This is clear confirmation that this is

Joseph Okaly: 00:03:31

the next thing that I should take on. Now I researched of

Joseph Okaly: 00:03:34

course what it took. I'm very organized in that way. I spoke

Joseph Okaly: 00:03:38

to other people I knew who had done it, and I set a schedule to

Joseph Okaly: 00:03:42

make sure I would reach that required 13.1 miles of distance,

Joseph Okaly: 00:03:46

ya know, physically be able to complete that. Now while I

Joseph Okaly: 00:03:50

didn't exactly spring out of bed every morning, I wasn't super

Joseph Okaly: 00:03:54

pumped and excited the way nighttime Joe would make me feel

Joseph Okaly: 00:03:57

like I was going to be the next day. The race was in January. So

Joseph Okaly: 00:04:01

training in New Jersey during November and December. Those

Joseph Okaly: 00:04:05

weren't too pleasant. But overall, I was able to get up

Joseph Okaly: 00:04:09

the majority of the time because I had a clear goal of what I

Joseph Okaly: 00:04:12

wanted to accomplish and knew that the feeling of completing

Joseph Okaly: 00:04:16

that goal would just be tremendous right? Now when I hit

Joseph Okaly: 00:04:20

the mileage for the first time when I was practicing, I mean I

Joseph Okaly: 00:04:20

When it comes to investments, pushing yourself just a little

Joseph Okaly: 00:04:24

still remember rounding that that last corner. I felt like

Joseph Okaly: 00:04:27

Lauryn was with me. I was actually looking up speaking to

Joseph Okaly: 00:04:31

her that I was doing it rounding that last leg of the run. So

Joseph Okaly: 00:04:35

January comes, I completed the run in Disney. I got injured so

Joseph Okaly: 00:04:39

I was a little bit slower than I was anticipating but I did

Joseph Okaly: 00:04:43

complete it and having my wife Lauren and my daughter Avery

Joseph Okaly: 00:04:46

there to greet me at the end was just this fantastic, you know

Joseph Okaly: 00:04:50

momentous like indescribable type feeling.

Joseph Okaly: 00:04:57

bit more can make all the difference. It can lead us to

Joseph Okaly: 00:05:01

the end, where we feel fantastic, where we feel

Joseph Okaly: 00:05:04

tremendous. If I had not kept to my schedule training for the

Joseph Okaly: 00:05:08

run, I wouldn't have been able to make the distance required

Joseph Okaly: 00:05:11

for the race. There's no way I would have been able to do it.

Joseph Okaly: 00:05:14

There was a goal date, though. So I had, you know, a time

Joseph Okaly: 00:05:17

period, I knew what was at stake, if I didn't do it, you

Joseph Okaly: 00:05:21

know? Many of us out there would like to retire early. Some

Joseph Okaly: 00:05:26

people just love their jobs. I'm one of those people, I love my

Joseph Okaly: 00:05:28

job. And that may not be the goal. But all of us definitely

Joseph Okaly: 00:05:32

want to have that flexibility down the road, to choose our

Joseph Okaly: 00:05:36

options, whether it's early retirement or something else. We

Joseph Okaly: 00:05:39

want our options to be open to us as early as we can. We want

Joseph Okaly: 00:05:43

to feel that tremendous feeling of having the freedom to do what

Joseph Okaly: 00:05:48

will make us happy as early as possible. And saving just a

Joseph Okaly: 00:05:52

little bit more, that can do a lot more than you think to get

Joseph Okaly: 00:05:56

into that goal that we all have.

Joseph Okaly: 00:05:58

First, if you think of your credit card statement, does it

Joseph Okaly: 00:06:01

vary every month? Is your credit card statement exactly 100% the

Joseph Okaly: 00:06:05

same every single month? Of course not right? Nobody's is.

Joseph Okaly: 00:06:10

Some months, it may be a few 100 or even more higher or lower.

Joseph Okaly: 00:06:14

This means that your budget has some flexibility built into it.

Joseph Okaly: 00:06:19

There's some amount of flexibility in your plan. If

Joseph Okaly: 00:06:22

your kid gets sick, your dog has to go to the vet, you handle it

Joseph Okaly: 00:06:25

right? You don't take out a second mortgage. You figure out

Joseph Okaly: 00:06:28

how to get that extra $100 out of your budget. Now, most people

Joseph Okaly: 00:06:32

use this flexibility to allow for additional spending, not for

Joseph Okaly: 00:06:37

additional savings. A vet bill, a doctor bill, those are

Joseph Okaly: 00:06:40

additional spending that we're being flexible about. If your

Joseph Okaly: 00:06:43

kid gets sick and needed a medicine costing $100 a month,

Joseph Okaly: 00:06:47

you would figure out a way to afford that right? That would

Joseph Okaly: 00:06:49

not even be a question, it wouldn't be a problem. That

Joseph Okaly: 00:06:53

means that you can also figure out a way to pay yourself

Joseph Okaly: 00:06:56

another $100 a month. If you saved an extra $100 a month for

Joseph Okaly: 00:07:01

the next 30 years until retirement at just 8% growth,

Joseph Okaly: 00:07:05

you'd be at almost an extra $150,000. Money that you

Joseph Okaly: 00:07:07

probably wouldn't even miss $100 a month, you probably would not

Joseph Okaly: 00:07:11

even miss it but you're definitely going to be super

Joseph Okaly: 00:07:17

grateful for an extra $150,000 down the road. Would an extra

Joseph Okaly: 00:07:22

$150,000 allow you to do what at retirement? Retire a few years

Joseph Okaly: 00:07:27

earlier? Take a dream vacation around the world? Buy a sports

Joseph Okaly: 00:07:31

car that you've always wanted to have? You know it'd be something

Joseph Okaly: 00:07:34

significant though, right? And that math is linear. If you can

Joseph Okaly: 00:07:39

come up with an extra $200 a month, now that's an extra

Joseph Okaly: 00:07:42

$300,000 extra in 30 years with those same assumptions. Again,

Joseph Okaly: 00:07:46

money that you probably wouldn't even notice.

Joseph Okaly: 00:07:49

Again, credit card, my bill goes up and down by more than $200 a

Joseph Okaly: 00:07:53

month. If your car lease went up by 100 bucks, you probably

Joseph Okaly: 00:07:57

wouldn't lose too much sleep over that right? You need a car.

Joseph Okaly: 00:08:00

This is the new model. Three years later, okay, it costs a

Joseph Okaly: 00:08:02

little bit more, that's how it goes, I'll figure it out. How

Joseph Okaly: 00:08:05

about you need to pay yourself. You need to treat yourself with

Joseph Okaly: 00:08:09

that same high level of respect, that same high level of need

Joseph Okaly: 00:08:14

that same high level of attention. You need to give that

Joseph Okaly: 00:08:17

to yourself too.

Joseph Okaly: 00:08:18

This doesn't even count the fact that your income goes up over

Joseph Okaly: 00:08:21

time. So let's go back to those same examples. Let's say every

Joseph Okaly: 00:08:25

year your income goes up 5%, on average. So right now, let's say

Joseph Okaly: 00:08:30

you can afford $100 a month. Next year, it should be $105 a

Joseph Okaly: 00:08:34

month. The year after that would be like $111 a month, and so on

Joseph Okaly: 00:08:38

and so forth. So when we take that original $100 a month

Joseph Okaly: 00:08:42

scenario, and we do the same thing, but assume that you

Joseph Okaly: 00:08:44

increase your payments every year because you make more every

Joseph Okaly: 00:08:47

year so it should go somewhere towards you. Now that comes out

Joseph Okaly: 00:08:51

instead of to about $150,000. It's over or almost I should say

Joseph Okaly: 00:08:56

$260,000. So same $100 a month just growing a little bit every

Joseph Okaly: 00:09:01

year 5% like you do. $260,000 now after 30 years with those

Joseph Okaly: 00:09:06

same assumptions. So if you can do $100 a month now, don't stop

Joseph Okaly: 00:09:12

there. $105 a month is even better. $115 a month, the year

Joseph Okaly: 00:09:16

after that even better. The more you can keep pushing that

Joseph Okaly: 00:09:19

upwards in small incremental feasible amounts, the greater

Joseph Okaly: 00:09:23

that exponential long term number can grow to. Do that for

Joseph Okaly: 00:09:27

yourself. If you could afford $100 a month I'm guessing $105

Joseph Okaly: 00:09:31

is not going to break the bank.

Joseph Okaly: 00:09:33

So as we get to the end of this episode, let's circle back

Joseph Okaly: 00:09:36

around to the goal statement for today. If you can say now "I

Joseph Okaly: 00:09:41

better understand how impactful it can be to consistently push

Joseph Okaly: 00:09:46

my savings just a little bit further" then you have succeeded

Joseph Okaly: 00:09:50

in the main point of this episode. So congrats. Now get

Joseph Okaly: 00:09:53

out there, myself included and just save a little bit more

Joseph Okaly: 00:09:57

towards you.

Joseph Okaly: 00:09:59

Thanks as always for tuning in today and join us for next

Joseph Okaly: 00:10:03

week's episode called Bingo, You Probably Own More Than the

Joseph Okaly: 00:10:07

Market, where we're going to cover how what you see on TV

Joseph Okaly: 00:10:11

described as the market very likely isn't what you actually

Joseph Okaly: 00:10:15

own in your entire portfolio.

Joseph Okaly: 00:10:17

So overall if you're able to implement what we covered today,

Joseph Okaly: 00:10:20

then that's just fantastic. Less to worry about is great. More

Joseph Okaly: 00:10:24

focus on enjoying life, also great. If you're wanting help

Joseph Okaly: 00:10:27

with these things, though, or you have questions you need help

Joseph Okaly: 00:10:30

in clarifying, check out the ASK JOE section on the show's

Joseph Okaly: 00:10:33

website. EnjoyMore30s.com that's EnjoyMore30s.com. Until next

Joseph Okaly: 00:10:40

week. Thanks for joining me today and I look forward to

Joseph Okaly: 00:10:42

connecting with you again soon.

Voiceover Audio: 00:10:43

The conversations on this show are

Voiceover Audio: 00:10:43

Joe's opinions and provided for general information purposes

Voiceover Audio: 00:10:45

only. They do not constitute accounting, legal, tax, or other

Voiceover Audio: 00:10:47

professional advice for your specific situation. You should

Voiceover Audio: 00:10:51

always seek appropriate advice from a financial advisor,

Voiceover Audio: 00:10:58

accountant, lawyer, or other professional before acting upon

Voiceover Audio: 00:11:02

any content or information found here first. Joe is affiliated

Voiceover Audio: 00:11:06

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio: 00:11:09

of TFS Securities, Inc., and TFS Advisory Services an SEC

Voiceover Audio: 00:11:13

Registered Investment Advisor, Member FINRA/SIPC.