Your Money Multiplier Series Recap | Series 2.9

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

Welcome to the Enjoy More 30s: Family Finance

Joseph Okaly: 00:00:19

podcast. This is our series two, "Your Money Multiplier" series

Joseph Okaly: 00:00:24

recap. We really covered a lot so far this season- from

Joseph Okaly: 00:00:28

bonuses, to stock options, to standardizing a regular income,

Joseph Okaly: 00:00:34

to even a five minute cash flow calculation. So there's really a

Joseph Okaly: 00:00:38

lot of valuable, actionable information. But at the same

Joseph Okaly: 00:00:42

time, it's kind of easy to be overwhelmed by it if we let it.

Joseph Okaly: 00:00:46

If we take even positive action on one of these eight relevant

Joseph Okaly: 00:00:50

episode topics, you're better than you were before. And you

Joseph Okaly: 00:00:54

should feel proud if you do that. We also want to make sure

Joseph Okaly: 00:00:58

we're remembering the goal; remove anxiety and financial

Joseph Okaly: 00:01:02

worry so we can focus our energy on what matters most- enjoying

Joseph Okaly: 00:01:06

more living with family and friends. Get your legal

Joseph Okaly: 00:01:09

documents out of the way- less worry. Know you're saving what

Joseph Okaly: 00:01:13

you should be every month- less worry. So be proud of these

Joseph Okaly: 00:01:16

steps as you take them. You're making life more enjoyable than

Joseph Okaly: 00:01:19

for you, and by a natural consequence, for your loved ones

Joseph Okaly: 00:01:23

as well. It's not just for yourself- if you get to spend

Joseph Okaly: 00:01:25

more time with your kids, that makes your kids happy too.

Joseph Okaly: 00:01:28

Lastly, stay tuned to the end, as we're going to be releasing

Joseph Okaly: 00:01:32

the focus of the next series to come which takes us in kind of a

Joseph Okaly: 00:01:35

different direction. And I'm really excited to share that

Joseph Okaly: 00:01:37

with you too.

Joseph Okaly: 00:01:38

So without further ado, get together with your spouse, and

Joseph Okaly: 00:01:42

let's start reviewing. Number one- bonuses aren't free money.

Joseph Okaly: 00:01:45

So the first most important thing to take from this episode

Joseph Okaly: 00:01:49

is that it kind of borrows the title "Bonuses Are Not Free

Joseph Okaly: 00:01:53

Money", you need to plan for what you want to do with the

Joseph Okaly: 00:01:56

funds ahead of time. The second thing to take from this episode

Joseph Okaly: 00:01:59

is if you do treat it as free money and spend it, you're

Joseph Okaly: 00:02:03

actually hurting yourself in two distinct ways. One is obvious-

Joseph Okaly: 00:02:07

you have less saved. But two- you're also getting accustomed

Joseph Okaly: 00:02:10

to living on more, which means now we also have to replace more

Joseph Okaly: 00:02:14

long term. The third thing to take from this episode is you do

Joseph Okaly: 00:02:19

not have to save all of it as part of your plan. Any portion

Joseph Okaly: 00:02:23

benefits you in those same two ways that we just covered. Any

Joseph Okaly: 00:02:26

portion that you save, obviously, you'll have bigger

Joseph Okaly: 00:02:29

accounts down the road, and two, you're accustomed to living on

Joseph Okaly: 00:02:32

less because of that, so there's less to replace long term.

Joseph Okaly: 00:02:36

The second episode we covered was vacation accounts, it was

Joseph Okaly: 00:02:40

called "Live It Up! Vacation Accounts." The first thing that

Joseph Okaly: 00:02:43

you should be taking from this episode is segmenting your

Joseph Okaly: 00:02:46

vacation specific money can give you a much higher likelihood of

Joseph Okaly: 00:02:51

having and taking that vacation you otherwise would maybe not

Joseph Okaly: 00:02:55

have taken. The second thing to take from this episode is you

Joseph Okaly: 00:02:59

have different places you can save every month to accomplish

Joseph Okaly: 00:03:03

this. The bank account option is very easy and straightforward.

Joseph Okaly: 00:03:07

Just push money every month to a bank account, and that's your

Joseph Okaly: 00:03:10

vacation specific bank account. The other option, though, is if

Joseph Okaly: 00:03:13

you have a general investment account that is already built up

Joseph Okaly: 00:03:17

to some degree, you can instead save this monthly vacation

Joseph Okaly: 00:03:20

amount into that general investment account. And saving

Joseph Okaly: 00:03:24

the funds here, the additional potential advantage is if you

Joseph Okaly: 00:03:28

wind up having enough money on the side anyway to cover the

Joseph Okaly: 00:03:31

vacation, now there's more in the investment account than

Joseph Okaly: 00:03:34

there otherwise would be. And now this money can build up for

Joseph Okaly: 00:03:38

a bigger vacation, a house, or just earlier retirement,

Joseph Okaly: 00:03:41

whatever the goal might be. But you're putting yourself in a

Joseph Okaly: 00:03:43

position to potentially have more saved for yourself long

Joseph Okaly: 00:03:46

term.

Joseph Okaly: 00:03:47

The third episode we covered was called "Just Get An Umbrella

Joseph Okaly: 00:03:50

Policy Already". The first thing to recognize from this episode,

Joseph Okaly: 00:03:55

excuse me, is that your standard coverage that you have from a

Joseph Okaly: 00:03:59

liability perspective, so if people sue you resulting from an

Joseph Okaly: 00:04:04

auto or home related lawsuit, may not be enough to cover what

Joseph Okaly: 00:04:08

you need. The second point though is, thankfully, it's very

Joseph Okaly: 00:04:11

easy and very cost effective to double or even triple this

Joseph Okaly: 00:04:15

coverage to better protect you. So remember the general

Joseph Okaly: 00:04:19

protection mindset. We want to make sure we're always insuring

Joseph Okaly: 00:04:23

against the catastrophic, which could derail everything you have

Joseph Okaly: 00:04:26

worked for. That's what we want to at least at a minimum make

Joseph Okaly: 00:04:30

sure that we're protecting.

Joseph Okaly: 00:04:31

The fourth episode we covered was "36%: The Golden Cash Flow

Joseph Okaly: 00:04:35

Ratio". This is probably my favorite episode this season

Joseph Okaly: 00:04:39

because it is so easy for anybody to incorporate and take

Joseph Okaly: 00:04:42

some level of positive action off of. The first point that you

Joseph Okaly: 00:04:46

want to remember here is to rethink the goal when it comes

Joseph Okaly: 00:04:50

to scary words like budgeting. The goal is not to account for

Joseph Okaly: 00:04:54

every single penny; it's to make sure you're saving a good amount

Joseph Okaly: 00:04:57

towards yourself and keeping within your means. That's it-

Joseph Okaly: 00:05:02

save toward yourself, keep within your means. That's a lot

Joseph Okaly: 00:05:05

easier than accounting for where every single little penny goes

Joseph Okaly: 00:05:08

month to month for an entire year, years on end- not a

Joseph Okaly: 00:05:11

sustainable way of doing it. Second, use that 36% ratio that

Joseph Okaly: 00:05:16

we provided to you to quickly get an idea of where you stand.

Joseph Okaly: 00:05:19

Gross, or pre tax income, times 36%, minus those expenses that

Joseph Okaly: 00:05:25

are specific to you, so things that you have but other people

Joseph Okaly: 00:05:29

may not have. Again remember the 64% covers all the groceries,

Joseph Okaly: 00:05:34

the taxes, all the stuff that you and everybody else in

Joseph Okaly: 00:05:37

America has. And so when you get to that end, gross pre-tax

Joseph Okaly: 00:05:42

income minus those expenses specific to you, minus any

Joseph Okaly: 00:05:46

savings that you might be making, you're done and you have

Joseph Okaly: 00:05:49

a starting point. You have an amount where you feel like okay,

Joseph Okaly: 00:05:52

this is probably what most families should have as an

Joseph Okaly: 00:05:54

excess, or what most families may be having a little bit of a

Joseph Okaly: 00:05:59

deficit if my numbers aren't coming out, but you have

Joseph Okaly: 00:06:02

something to go off of in about five minutes time. The last part

Joseph Okaly: 00:06:06

of this is take action. Make a conscious choice to now do

Joseph Okaly: 00:06:10

something with that extra savings, or to take actions to

Joseph Okaly: 00:06:13

balance your cash flow. Saving at the expense of mounting

Joseph Okaly: 00:06:17

credit card debt is kind of like swimming backwards. So we don't

Joseph Okaly: 00:06:20

want to be doing that.

Joseph Okaly: 00:06:21

Next episode, "Stocks Lead, Don't Follow". Anybody who has

Joseph Okaly: 00:06:25

any kind of investment whatsoever could probably

Joseph Okaly: 00:06:28

benefit from this episode here. We want to first understand that

Joseph Okaly: 00:06:32

the stock market is a leading indicator. And that uncertainty

Joseph Okaly: 00:06:37

is what often drives the vast majority of the volatile times.

Joseph Okaly: 00:06:40

Less uncertainty usually means less volatility. Second, once

Joseph Okaly: 00:06:46

you see the market went down or is going up, there's a good

Joseph Okaly: 00:06:50

chance that it may be already too late to act. When there are

Joseph Okaly: 00:06:53

a lot of waves again, we don't want to try jumping on a

Joseph Okaly: 00:06:56

different boat. If you touch your investments and miss time

Joseph Okaly: 00:06:59

when you take money out or go back in, you could very well

Joseph Okaly: 00:07:02

wind up with significantly less than if you were patient and

Joseph Okaly: 00:07:06

just did not touch it at all.

Joseph Okaly: 00:07:08

Next episode, probably the least fun to go through, but the most

Joseph Okaly: 00:07:12

important in many respects- "The Seven Year Task- Legal Docs".

Joseph Okaly: 00:07:17

First thing that you want to remember from this episode here

Joseph Okaly: 00:07:20

is if you don't have anything yet, forgive yourself, it's

Joseph Okaly: 00:07:24

fine, you're definitely not alone. Second, there are three

Joseph Okaly: 00:07:28

documents which are all provided together generally as part of

Joseph Okaly: 00:07:31

the process- will, power of attorney, and living will with a

Joseph Okaly: 00:07:35

medical directive. Third, take one small step of action to put

Joseph Okaly: 00:07:39

yourself in motion towards this today. Remember the family

Joseph Okaly: 00:07:43

member that would win an argument in getting custody of

Joseph Okaly: 00:07:47

your children in a court, may likely not be the one you would

Joseph Okaly: 00:07:52

actually consciously choose to raise your kids, if God forbid

Joseph Okaly: 00:07:55

something happened to you.

Joseph Okaly: 00:07:56

Next episode here, episode eight, "Make Irregular Income?

Joseph Okaly: 00:08:00

Have Regular Pay". So for anybody out there that is an

Joseph Okaly: 00:08:04

entrepreneur, or self employed, or gets a lot of variable

Joseph Okaly: 00:08:07

income, this is really a great episode for you. First want to

Joseph Okaly: 00:08:11

make sure that we acknowledge that irregular income is

Joseph Okaly: 00:08:14

definitely more challenging. And it is a problem that needs to be

Joseph Okaly: 00:08:18

handled a little bit differently than people that get regular pay

Joseph Okaly: 00:08:21

month after month. How we handle this is we set up two buckets.

Joseph Okaly: 00:08:26

One, you have your all income bucket- receives all the income

Joseph Okaly: 00:08:29

from the various income accounts, commissions, bonuses,

Joseph Okaly: 00:08:32

what that might be. So that's bucket one. And then this bucket

Joseph Okaly: 00:08:36

pushes money every month to your spending bucket, or bucket two.

Joseph Okaly: 00:08:40

The same exact amount comes every month to handle all those

Joseph Okaly: 00:08:43

groceries, cell phone, mortgage, all those things that are

Joseph Okaly: 00:08:46

essentially the same every month that you need to do. The last

Joseph Okaly: 00:08:49

part of this is make sure you just take enough time to

Joseph Okaly: 00:08:51

calculate how much you actually need to live on each month, so

Joseph Okaly: 00:08:55

that you can obviously set the transfer up accordingly to be

Joseph Okaly: 00:08:59

able to match what your monthly expenses might be. Last part of

Joseph Okaly: 00:09:03

this process, make sure to look regularly, either quarterly or

Joseph Okaly: 00:09:07

annually, for the amount that may be building up in your all

Joseph Okaly: 00:09:10

income account to hopefully invest a sizeable portion

Joseph Okaly: 00:09:13

towards yourself, but also on any other specific goals or

Joseph Okaly: 00:09:17

expense items that you might have.

Joseph Okaly: 00:09:20

This brings us to our last and definitely most confusing

Joseph Okaly: 00:09:23

episode, or confusing topic overall, and that was "Stock

Joseph Okaly: 00:09:28

Option Mayhem!". These things are confusing for everyone,

Joseph Okaly: 00:09:31

definitely not just you. The two main elements that we want to

Joseph Okaly: 00:09:35

remember whether you have RSUs, or stock options, or stock

Joseph Okaly: 00:09:39

purchase plans, is that you need to make a decision when it comes

Joseph Okaly: 00:09:43

to taxes and concentration. Taxes should be planned for.

Joseph Okaly: 00:09:49

RSUs, restricted stock, will automatically be taxed upon

Joseph Okaly: 00:09:53

vesting. Stock options and purchase plans, you have more

Joseph Okaly: 00:09:56

control on when the tax is realized. The concentration

Joseph Okaly: 00:10:00

element- RSUs are easier to emotionally diversify out of

Joseph Okaly: 00:10:05

because they force you to realize the tax upon vesting.

Joseph Okaly: 00:10:09

Selling isn't tax unfriendly after that, they're already

Joseph Okaly: 00:10:12

fully taxable. So you might as well sell out of those, and

Joseph Okaly: 00:10:16

reinvest into something that's a little bit more spread out and

Joseph Okaly: 00:10:18

diversified. The other two can be more tempting to hold on to

Joseph Okaly: 00:10:22

much longer, the stock options and the stock purchase plan. But

Joseph Okaly: 00:10:25

always remember, you are paying tax on some of the gain whenever

Joseph Okaly: 00:10:29

it may occur, you are still keeping most of it. Individual

Joseph Okaly: 00:10:33

companies always pose a real risk tied to how that one

Joseph Okaly: 00:10:36

company does or is perceived to do. Example that we use in the

Joseph Okaly: 00:10:41

episode- if a CEO has a personal scandal, that company has its

Joseph Okaly: 00:10:45

stock go down, despite really not being too different than it

Joseph Okaly: 00:10:48

was yesterday than it is today. So always something to keep in

Joseph Okaly: 00:10:52

mind.

Joseph Okaly: 00:10:53

And there you have it, take some time to review all of these

Joseph Okaly: 00:10:56

important areas. And if you can make one positive change, then

Joseph Okaly: 00:11:00

you're one step farther along in having life be more enjoyable to

Joseph Okaly: 00:11:03

you. If you can absorb and implement all these items,

Joseph Okaly: 00:11:07

that's fantastic. I am so happy to be able to provide this to

Joseph Okaly: 00:11:11

you. One more person that's able to provide more for themselves,

Joseph Okaly: 00:11:14

add more enjoyment to their life, I'm perfectly good with

Joseph Okaly: 00:11:17

that. It is overwhelming, though, if you have questions or

Joseph Okaly: 00:11:21

you just want someone to help get all this stuff in order for

Joseph Okaly: 00:11:24

you so you know exactly where you're going, what path you're

Joseph Okaly: 00:11:28

on- head on over to our website at www . enjoy more 30s .com.

Joseph Okaly: 00:11:34

That's enjoy more three zero s .com. And click the 'Ask Joe' to

Joseph Okaly: 00:11:39

connect and we'd be happy to help in any way that we can.

Joseph Okaly: 00:11:42

Overall, as always, thanks for tuning in going through the end

Joseph Okaly: 00:11:46

of the series here with us. If you enjoyed this episode, please

Joseph Okaly: 00:11:50

make sure to click follow and review us on Apple podcasts or

Joseph Okaly: 00:11:54

wherever you listen. There are literally millions of young

Joseph Okaly: 00:11:57

American families out there, I'm trying to reach and help just

Joseph Okaly: 00:11:59

like you. Finally, as promised, I want to make sure I announced

Joseph Okaly: 00:12:03

the topic for the next series, or the focus of the next series.

Joseph Okaly: 00:12:07

The next series is going to be entitled, "Your Parent's Money

Joseph Okaly: 00:12:10

Mindset". So this is something that is very well in line to

Joseph Okaly: 00:12:15

affect you down the road, even though you may not even know it.

Joseph Okaly: 00:12:18

We're going to help you bridge that gap when it comes to money

Joseph Okaly: 00:12:22

and the conversations around it with your parents. How to make

Joseph Okaly: 00:12:26

sure that they're taken care of, their health care and long term

Joseph Okaly: 00:12:30

care concerns, how inheriting assets can affect you, the taxes

Joseph Okaly: 00:12:35

and the responsibilities that come with it. There are a lot of

Joseph Okaly: 00:12:38

really great topics in an area, if it's not properly under

Joseph Okaly: 00:12:42

control, can cause huge issues for you and for them, which

Joseph Okaly: 00:12:47

definitely makes life way less enjoyable. There's just so much

Joseph Okaly: 00:12:51

out there that could impact them. And it's going to hit you

Joseph Okaly: 00:12:55

one way or another if there is a problem, so you might as well be

Joseph Okaly: 00:12:59

educated on it ahead of time. And if you can talk to them

Joseph Okaly: 00:13:03

ahead of time, which we're going to cover and try to help you

Joseph Okaly: 00:13:05

bring up better ways to have these conversations, then this

Joseph Okaly: 00:13:09

is something that you can head off ahead of time for yourself,

Joseph Okaly: 00:13:12

but also possibly improve the situation of your parents ahead

Joseph Okaly: 00:13:15

of time as well. So really excited to go through that

Joseph Okaly: 00:13:18

because it's something that is, again, not really discussed

Joseph Okaly: 00:13:22

enough when it comes to the younger generation of what's

Joseph Okaly: 00:13:26

coming their way, or just even how to handle it if they know

Joseph Okaly: 00:13:30

it's coming. So as always, thanks so much for joining me

Joseph Okaly: 00:13:33

today. I'm really, really looking forward to connecting

Joseph Okaly: 00:13:36

with you again soon in this upcoming "Your Parent's Money

Joseph Okaly: 00:13:39

Mindset" series to come.

Voiceover Audio: 00:13:45

The conversations on this show are

Voiceover Audio: 00:13:47

Joe's opinions and provided for general information purposes

Voiceover Audio: 00:13:50

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

Voiceover Audio: 00:13:53

professional advice for your specific situation. You should

Voiceover Audio: 00:13:56

always seek appropriate advice from a financial advisor,

Voiceover Audio: 00:13:59

accountant, lawyer or other professional before acting upon

Voiceover Audio: 00:14:03

any content or information found here first. Joseph is affiliated

Voiceover Audio: 00:14:07

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio: 00:14:10

of TFS securities Inc and TFS advisory services, an SEC

Voiceover Audio: 00:14:14

registered investment advisor member FINRA/SIPC.