Investors Community Bank's Podcast

Money Matters with Matt - June 26, 2020

June 26, 2020 ICB
Investors Community Bank's Podcast
Money Matters with Matt - June 26, 2020
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Investors Community Bank's Podcast
Money Matters with Matt - June 26, 2020
Jun 26, 2020
ICB

It's graduation season! On today's show, Matt offers financial tips for recent high school and college graduates. 

Show Notes Transcript

It's graduation season! On today's show, Matt offers financial tips for recent high school and college graduates. 

Announcer: 
Now, Investors Community Bank welcomes you to Money Matters with Matt on 1240
Radio WOMT.

Host: 
Matt Lemke with us. Matt, welcome back. Let's talk graduation. Oh, my goodness.
Imagine being a graduate in this day and age.

Matt Lemke: 
I cant.

Host: 
All those years and years of work, hard work

Matt Lemke: 
Right.

Host:
... and all of a sudden, I'm here and there's nothing for you.

Matt Lemke: 
No celebration, no popping circumstance.

Host: 
That could have been one of the happiest days of my life when I walked across the stage
and got my diploma. But, graduates hang in there. There's plenty out there and we're
proud of you, without a doubt. So, let's talk a little bit about graduation season. You
have some neat incentives and advice for graduates.

Matt Lemke: 
Yeah, absolutely. Although graduations may not have occurred yet, some places have
had them, at the end of the day, you're still done with your schooling. Now, it's time to
join the real world, if you will. You got to start thinking about your finances. The first
one that we've talked about on this show countless times is budget, budget, budget.

Host: 
It sounds ridiculous, budget, budget, budget. But if you don't have a budget, it's like
taking a vacation without knowing where you're going.

Matt Lemke: 
That's right. You got to have a plan.

Host: 
You have no idea which road to take or when to leave, or what time you're going to get
there, or when you're going to come back. It really does make sense to have a budget.
How complex is that?

Matt Lemke: 
Well, initial budgeting is relatively simple. You start by adding up the essentials like rent,
utilities, groceries, transportation, any loans that you might have. And then, that's going
to know how much you've got to spend each month. And then, the difference between
what you're making and what you absolutely have to spend is what you can start saving
or using for other activities.

Host: 
Say, you have $300 left to spend. It doesn't mean you should run out and spend 299 of
them.

Matt Lemke: 
No, you need to plan a little bit and save for emergencies. The bottom line that people
have to understand is you really, at the end of the day, have to spend less than you're
making. You've got to be comfortable with that lifestyle.
 
Host: 
If you see a million-dollar house along the lakeshore, don't expect to have that day one.

Matt Lemke: 
No, take some time. You got to build up to those sorts of things.

Host: 
It sure does. We'll save that for year five or year 10. That's an attainable goal if

Matt Lemke: 
You have a budget

Host: 
... you plan.

Matt Lemke: 
... and you have a plan.

Host: 
Yeah.

Matt Lemke: 
That's right.

Host: 
You got to plan for that budget. What are some other great tips for graduates?

Matt Lemke: 
Well, you're going to want to try to steer clear of debt right out of the gate. Debt can
stop you from taking a job you might love because the salary is not high enough to meet
your obligations. It can also shut the door on offers because an increasing number of
employers are checking prospective employees' credit reports as part of their due
diligence process. They want to make sure that as they're hiring an employee, that
they've done a good job with their own personal finances and that's reflective in their
credit report.

Host: 
Being a responsible employee, that's the way to go. We have talked about this. We have
talked about this and we have talked about this. But boy, oh boy, Matt, were you right.
Build an emergency fund.

Matt Lemke: 
You got to have one and it seems somewhat silly because we do talk about it frequently.
But, the number of people that don't have that set aside is staggering. You ideally want
to have three to six months set aside that you could live off when something happens to
you.

Host:
That seems so realistic too after the stay at home. Having that emergency fund, that just
takes an extra level of stress off, knowing that you can make the rents or you can make
the mortgage, or you can make the car payment, or pay the insurance. Having that
really makes it so much easier and a little less stressful.

Matt Lemke: 
Well, there's been a lot of people in this situation that have gone three plus months
without working. Think of how much bigger piece of mind you would have had if you
had enough set aside to cover that. And then, you can go right back to work. Obviously,
it takes time to build that up just like anything, but it's certainly attainable.

Host: 
If you put that emergency fund a little bit at a time in the budget, you're on schedule for
that. What about investing at a young age? 
 
Matt Lemke: 
Yeah, that's a great place to put your money. One of the things for recent grads and new
employees is to make sure you take advantage of your employer's 401(k). Most
companies these days have some sort of matched that. If you contribute X amount, they
contribute the same. That's essentially free money. You're going to want to make sure
you don't miss that because you've got time, which is on your side.

Host: 
Investors Community Bank could probably help a graduate also with a credit and a
credit score. It seems like credit score is always on that. You do have advice for them if
they come on in or even if they talk now. What advice would you give for a Trek credit
record?

Matt Lemke: 
You're going to want to build credit and good credit as soon as you can, and show that
you're responsible borrower worthy of some loans and major purchases. If you've got a
credit card, keep your oldest one open. Pay bills on time and avoid maxing out any kind
of credit cards that you have out there.

Host: 
If you have that credit limit, it doesn't mean it's not a challenge. You don't have to meet
that credit limit.

Matt Lemke: 
That's right.

Host: 
Now, Matt, I know you are always available or someone at Investors Community Bank is
always available, and investors Community Bank is a partner.

Matt Lemke: 
Yes, absolutely.

Host: 
They could contact you or someone at Investors Community Bank to get more
information.

Matt Lemke: 
Yes. Our lobbies reopened last week, so we'd be more than happy to talk to you in
person, or give us a call. Stop through the drive-through, happy to help.

Host: 
Sounds great, Matt. Thanks for coming by.

Matt Lemke: 
Thank you.

Announcer: 
You've been listening to Money Matters with Matt presented by Investors Community
Bank. Let your money work for you. To learn more, visit investorscommunitybank.com.
Don't forget to tune in to Money Matters with Matt every Friday morning here on 1240
Radio WOMT. Investors Community Bank, we promise to walk in your shoes.