Are you ready to walk the road to financial independence? Come along as we journey with my daughter, Faith, who has been charting her course since she was just 15. We'll reminisce over those early days when she absorbed financial lessons from Jim Rohn videos and sought her first job at Downtown Summerlin Mall. From those humble beginnings to maximizing her Roth IRA and building a robust credit history, Faith's story is a testament to the power of early financial literacy. Her consistent practice of maxing out her Roth IRA has set her on the path to a nest egg of $1.8 million by the time she turns 62.
Faith's financial journey has also led her to the world of real estate. She'll share her experience of going from zero to a credit score of 750, and the process of purchasing her first condo. We'll explore the importance of having cash readily available and how down payment assistance programs can be a game-changer. Her success in real estate is a compelling example of how consistent saving, responsible credit card use, and smart investing can lead to financial independence.
So, if you're seeking motivation to begin or continue your financial literacy journey, Faith's story is sure to inspire. From early money conversations to building a substantial nest egg and owning a condo, she's turned the lessons of her financial education into tangible results. As we share more inspiring journeys, don't forget to subscribe. Come, let's explore the paths to financial independence together.
Don't forget to subscribe, like and share it with a friend or two!
Are you ready to walk the road to financial independence? Come along as we journey with my daughter, Faith, who has been charting her course since she was just 15. We'll reminisce over those early days when she absorbed financial lessons from Jim Rohn videos and sought her first job at Downtown Summerlin Mall. From those humble beginnings to maximizing her Roth IRA and building a robust credit history, Faith's story is a testament to the power of early financial literacy. Her consistent practice of maxing out her Roth IRA has set her on the path to a nest egg of $1.8 million by the time she turns 62.
Faith's financial journey has also led her to the world of real estate. She'll share her experience of going from zero to a credit score of 750, and the process of purchasing her first condo. We'll explore the importance of having cash readily available and how down payment assistance programs can be a game-changer. Her success in real estate is a compelling example of how consistent saving, responsible credit card use, and smart investing can lead to financial independence.
So, if you're seeking motivation to begin or continue your financial literacy journey, Faith's story is sure to inspire. From early money conversations to building a substantial nest egg and owning a condo, she's turned the lessons of her financial education into tangible results. As we share more inspiring journeys, don't forget to subscribe. Come, let's explore the paths to financial independence together.
Don't forget to subscribe, like and share it with a friend or two!
Welcome to Money Conversations with KJ. Kj is a lifelong entrepreneur who's made a lot of money, lost a lot of money and found his way back again. If you're looking for a sterile how-to, you're in the wrong place. Kj and his guests will walk you through real-life situations told by the people who live them, and they are as messy as they are inspiring. Each episode will offer lessons learned, advice on how to replicate successes and avoid pitfalls, and a new perspective to power your financial literacy, far from a one-size-fits-all.
Speaker 1:This podcast can help you build a roadmap to your personal promise land Milk and honey for some, whiskey and steak for others and remind you that you're not alone on this journey.
Speaker 3:Well, hello, hello, welcome back. Welcome back to another episode. I think we're episode number nine, number nine today, which is really exciting. They're going so fast and so awesome. But today's guest is a super special guest. I know I tell everybody I have a special guest, but this is super special because it's my daughter and my daughter Faith, hi, faith, hi, dad, so awesome to have you here to tell your story, because we both know I mean a lot of people we know personally know your story and everybody's very inspired by it. So I just want to do this podcast and that's what it's all about is to inspire people out there through learning financial literacy and what they're doing or not doing, what they're money. So, yeah, I'm very excited, very excited about it. So let's talk with the audience first.
Speaker 3:This is I have four kids. Faith is my youngest. She's 21. She just turned 21 in July, but she bought her first condo in February, so she was 20. But I don't want to start there yet. That's like the end of the story. Let's start with the beginning of the story. You and I started talking. I started to teach you things about money and financial literacy back around you. You were around 15. Tell me what you remember.
Speaker 2:Well, that was six years ago, but I remember you first coming to me telling me to read like Rich.
Speaker 1:Dad.
Speaker 2:Poor Dad and other books along. You know those lines, and I remember being 15, like, why is he teaching me this? Like I'm just a kid? I just want to go out and, with my friends and, you know, do whatever.
Speaker 3:Yeah, I was setting you up, though and I think it were 15 also when I took you to that I was doing a bootcamp for some real estate stuff and that that bootcamp was a side by side bootcamp for kids. Do you remember that bootcamp?
Speaker 2:Yes, that's when I was 17.
Speaker 3:Oh, that was 17. Okay, so at 15, you're wondering why am I teaching you this? Try to share with me what are the some of the? If you can remember what are some of the first lessons that you started actually learning and soaking in?
Speaker 2:One video that you had me watch. I don't remember the guy's name, but I just will never forget how much he was talking about your value when you're working, like you bringing value to whatever job that you have, and that's always stuck with me and like resonated with me. So the jobs that I have now to make more money and excel and go up the ladder.
Speaker 3:Yeah, that was Jim Rohn. Jim Rohn Unbelievable. Yeah, I have watched hours and hours of Jim Rohn and that's awesome to understand at 15. That really soaked in for you because it really is one of the most invaluable lessons that Jim Rohn has ever taught and he's taught thousands of lessons. But when people can realize, when you're out there trading time for money, right People you get paid X dollars per hour. It's not about that. You get paid for the value that you bring to any position you're gonna have in your whole life and people you know the more value you can bring, whether it's a job or entertainers, have to entertain, right. If you're really good entertainer, you're gonna make a lot more money than an entertainer who's not really that good right. So they're just bringing more value to any given situation. So that's an awesome lesson to have learned at 15 and retained it. Let me ask you have you ever had that type of conversation with any of your peers?
Speaker 2:If I have. I started the conversation because they don't really have the same mindset that I do. I feel like I've kind of taught my friends some stuff that you've taught me.
Speaker 3:Which is good. I think you know I talk a lot about with some of the other guests that you know we can get our financial literacy education from all different places, right Mom, dad, aunts, uncles, friends, wherever. So it's awesome that if you're sharing those lessons that I've taught you with peers you know the younger people see if they take them in, don't take them in, obviously time will tell right Through your peers what they're doing or not doing with their money. So that's just creating a mindset around money, right, and what to do in life and how to give value. It's just an awesome lesson. So after you learned that lesson, you weren't quite working yet, right, you weren't old enough to actually get a job. But your first job I remember. I remember you wanting to get a job but you couldn't, you weren't old enough.
Speaker 2:Yeah, I was 17. And I walked around the downtown Sarmalyn Mall and I walked into every single store and asked them if they were hiring and they were like, actually I was 16. And they said almost all of them said you had to be 18. And I was like, well, I guess I'll be back in a year.
Speaker 3:I'll be back. I'll be back. Yeah, it's unfortunate and that's working. That type of a job, a retailer, whatever it's difficult for a lot of kids to do that, you know, for, like boys, we go out in moulons and do paper routes and that kind of stuff. But you were excited. Why were you so excited to get a job?
Speaker 2:I don't know. I just I've always wanted to. I've always liked the idea of like being an adult and like being independent and doing things on my own. So knowing that I could go out and work hard and make money for myself was something exciting that I really wanted to get started.
Speaker 3:Okay, so you were just excited you were a real young, not quite adult, yet maybe a young adult wanting to be that young adult. I wonder if you know your siblings? There's a pretty good age gap between you and your siblings, right? You've always been the youngest one around the house. Did that kind of? Did that kind of make you want to be an adult sooner than later? Cause some kids don't even ever want to grow up, right, they just want to stay 15.
Speaker 2:Yeah, I do think that probably did play a factor into it also, because all my cousins and all my siblings know they are all roughly so much older than me and they're all the same age that maybe I just. I think I always just wanted to fit in with them.
Speaker 3:You wanted to catch up.
Speaker 2:And catch up with them.
Speaker 3:yes, you know. So for some of you guys that are out there and there's plenty of families out there that have age gap and siblings, right, your brothers and sisters, and that's okay. There's nothing wrong with that, there's actually. You've learned a lot of great things from having older siblings, right? I think the, I think the last child of any family has the most benefit, because they've got to see the good, the bad and the ugly of what's going on with the other siblings. Like well, I ain't gonna do that. Or, oh man, I gotta replicate that right.
Speaker 3:So then we'll skip up to where. Okay, finally you got a little old enough to go get a job, to go make money, yeah.
Speaker 2:I was 17. I started working at Coles. I only worked there for a couple months and I made $9 an hour and I remember that you told me that I had to save 50% of my check. No matter how much I made, 50% had to be saved. And I think you telling me that for my first job really instilled in me to this day that I need to save. I love to save as much as I can. I can't save 50% anymore, but I mean, that's what started me wanting to save so much money.
Speaker 3:Well, because I knew that at that time, like you didn't need any money, right, you were under my roof, I took care of everything and we talked the lessons about needs and wants, right. And I think you were sharing with me not too long ago about that lesson, because that lesson was taught right when you started working, and so how do you treat your daily life now with that lesson?
Speaker 2:Now, Well, now I'm more of an adult and I have real bills that I need to pay. And then there's makeup that comes out and I'm like, hmm, I mean, I want it but do I? Need it and that I can hear you in my head going yeah, you don't need that.
Speaker 3:That's what I was hoping you were saying, because it was funny when you told me that for the first time. I'm like I'm still in her head. I'm still in her head, yes, yes, but I remember the lessons when I was young and I had voices in my head telling me do this, don't do that. And I think we all grow up knowing right from wrong. That's a pretty basic one, but the fact that you're keeping it is great. So let's travel through time here. So you get that job. Egg calls and that was, I remember it was what do you call it during Christmas? Right, so they always hire extra people during Christmas time because they're busy, and so we knew that was a short-term deal and we're gonna be there forever, whatever, and you went and made a few bucks. But what were some of the good key lessons that you learned at that job that you still take away today?
Speaker 2:Accountability, punctuality and just hard working, hard stuff like that. When it's your first job, you know you're learning everything for the first time of what it's like to be in the working field.
Speaker 3:And just working with people, right, having to serve people because they're there to, you know, customer service, they're there to buy stuff and you gotta be pleasant and nice and all of those things. And we all know that not everybody is pleasant and nice, right, so you have to just kind of suck that up and be as pleasant as possible. So, yeah, that was a short-term deal and then from there I think it was springtime or something you went and found your second job. Where was that?
Speaker 2:My second job I didn't get until right after I turned 18. And that was at Windsor, at downtown Summerlin.
Speaker 3:Which is what's Windsor.
Speaker 2:Just a girly clothing store. They sell like special case and dresses and stuff.
Speaker 3:Okay, what lessons did you learn over there?
Speaker 2:There is where I really started to become a team player and I knew that I loved to work because I got called in a lot and I was always down to go. You know, I was hungry for the money for the work.
Speaker 3:Okay, all right. And then we at that time I remember, before you're 18, like almost any kid that's getting ready graduate high school and be 18, they want to just go spread their wings and be on their own. And you were telling me dad, I'm moving out when I turn 18, your birthday's in July. And I said what did I tell you?
Speaker 2:Well, it was like two or three weeks before my 18th birthday and I was like I'm moving out. But I didn't have a job at the time and you were like really, okay, well, that costs money, so let's break down. You know roughly rent and you know power, this and that, yada, yada, yada. You need to make this much money a week and in a month and you make nothing right now. And that's when I realized like, oh, I need to like actually go make money. I can't just leave and move out.
Speaker 3:Exactly. I think it was a great lesson and that's a great life lesson. And anything we may want, we can want a lot of things. You know, people want nicer cars, vacations, bigger houses, all that kind of stuff and it's great to have those goals. But I think if people would just break them down first, like, okay, I want XYZ, okay, how much is it? What's it going to take for me to get them? Whatever that may be vacation material thing, car, house, clothing, whatever and then you know, right, then you just map it out and that's what goals are all about. Right, my goal is XYZ. So then I remember okay, you figured that one out, I gotta go work and that's why you were saving money. But one of the things when we broke that down if you remember, share with me what you remember when we broke those things down the dollars, and what went through your mind and what would you tell yourself.
Speaker 2:It's a lot harder than I thought how, because of the money that I needed. You know you have to go work for money.
Speaker 3:Right. So was it hard, because how much were you making over when you went from coals over to that Windsor?
Speaker 2:When I was working on Windsor, I only made 825 minimum wage tips?
Speaker 3:Nope, no tips, minimum wage. And you wanted to move out. So, if we start doing math, do you remember the numbers when we put them together, how much it was going to take? No, it was like 12 or 1400 a month minimum, because you didn't have any other bills, right? So we figured that. So I'm like okay, how are you going to make 12 to 1400 a month just to pay bills, let alone? You still have to save, right? Because let's get into one of the things when you started to work, I had you open an account. What type of an account did I have you open?
Speaker 2:A Roth IRA.
Speaker 3:Yeah, explain to the audience why I had you open a Roth IRA.
Speaker 2:Well, I opened it right at 18, which is like the best time to open it, because time is money, time is of the essence, and so I've been putting money in, or the maximum that you can put in every year, and you do that for seven years, right?
Speaker 3:Well, that's, that's one lesson. I mean you could put it in your whole life. But I'll break the lesson down for everybody out there. At 18 years old, if you max out your Roth IRA for seven years and then never put another diamond in it when you're 62 years old, you're going to have about $1.8 million. So at your age you could put 6000, right, so 6000 at seven years. How much money is that?
Speaker 2:42,000.
Speaker 3:42,000. And then you never put another diamond. Now compound interest takes place and you will have $1.8 million, roughly at 62. That's pretty sweet. So but picture and imagine like you're doing. Well, let me just keep funding it. What do you think that could grow to?
Speaker 2:Double that, triple that.
Speaker 3:Exactly Double, triple, quadruple If you just kept maxing out, right, so? But the best thing about the Roth IRA is that when it is time right to cash out, that's all tax free money.
Speaker 2:Yes.
Speaker 3:Tax free money because we fund our Roth IRAs with our after tax dollars, after you cash your check Right, and that's how you do it Share with, share with them, and this isn't an endorsement, but I'm going to have you share with who it's with and then how easy it is for you to track it via the app.
Speaker 2:So mine is with a Vanguard and, yeah, on my app I can just look at it and it'll tell me how much percent of the year that I have done, how much I have total and the my and like the investments you know, going up and down, everything like that.
Speaker 3:Yeah, because I know like right now, I had you invest and we won't get deep into that particular stock that we invested in and we're waiting for that stock to do what it's supposed to do. Because that's the one thing with the Roth IRAs that you can invest with those dollars that are in there. They don't just have to sit there. Right, you go like in your lifetime things could come up. Right, you're like, hey, I'm going to invest in that and you're going to invest in those things that you don't need that money. Right, you just want to I like to call turbocharge your account. You know, let's not just rely on compound interest and the minimum that I mean the maximum that you can put in, which is $6,000. Right, this is, this is how you accelerate those accounts to grow, so you'll have a lot of money. So you've been maxing it out. Now I think we're on year three, right, halfway through year three. Yeah, where you at.
Speaker 2:How much money do I have in this?
Speaker 3:What's your percentage? For for the year.
Speaker 2:I think it's like 60.
Speaker 3:Yeah, okay, there's the again. Now. The great thing about the Roth is so this is October, so you got roughly a three 90 days left, right, and I know you're funding it that if you don't quite hit that by December 31st, it's okay, because the provision within the Roth IRA is you actually technically have until April 15th of the following year to finish catching up the previous year, which is a pretty good provision to have, because stuff happens for people out there and you're like, oh man, I really want to max out, but I had XYZ come up right. So, yeah, listen, continue to do that because, think about it, you're, you're only a few months out to be in 50% of the way there, right? Yeah, what's the next account that I shared with you that I'd like to see you open?
Speaker 3:An index fund right, so let's go back to okay. You went from Windsor and then an opportunity arose for you.
Speaker 2:Yes, there was a pizzeria next to Windsor and I used to go there every day and I would see security always in there and they would be. I would talk to them and they'd be like you should come work here, be a dispatcher and be $12 an hour and I was like making 825. $12 sounded amazing. I was like sold. What do I have to do? So I got in, I started working there. I still work there and the story is I still work there. I've gotten a couple of raises over the over the years, not like $15 an hour.
Speaker 3:Right, right, no, well, so I think the lesson here is that one obviously, at 825, you, everybody wants to make more money, but an opportunity arose and I think life is nothing but opportunities, but recognizing when they do come, because I think a lot of people opportunities come up but they don't recognize that it's an actual opportunity. Right, and then that you should take advantage of any and all opportunities. Right, because we're going to talk about it on one of these other opportunities that arose that you took advantage of. So, okay, so you're working, you're doing your thing, you're still living at home with, with mom and me, and you're cruising along, and then you're like you still wanted to move out. And then what did we talk about after that? About getting your first place.
Speaker 2:Like what I was going to do. Like wanted to buy a place.
Speaker 3:Yeah, remember we talked to the conversation about buying not a house, because I knew that you wouldn't be able to qualify for a full house, but a condo. Yeah yeah, because you were still here at the house and you had shared with me, you had saved. You had a pretty decent amount saved, right, and you save so much money because you really don't have no bills. That's your basics. I had you start paying your phone bill yourself, but I take care of everything else. So before we could buy a house, one of the things that we had to do was to get your credit established. Remember that.
Speaker 2:Yeah.
Speaker 3:Talk to the people how you, because when the jump forward and then jump back is you bought your condo all on your own, 100%. I mean, mom and I were the representing agents, but you bought it. In order to do that, you have to have enough credit to do that and money. And so when I taught you the credit lesson, explain, share with the audience here the credit lesson I taught you and how you were able to build your credit over time. So when it came time to buy your condo, you qualified.
Speaker 2:Well, I started off with just a credit card and you taught me to use it on, well, basically everything.
Speaker 2:Don't as soon as I got a credit card, you said don't use your debit card anymore. So I started to use that. My limit rose. I got another credit card, did the same thing, got another credit card. But I'm just, I self-disciplined myself to spend within my means, even though you know I have this limit of so much money. I only spend as much as I know I can actually spend, that I can actually pay back. So when you do that, plus how many years of credit that you have, which also really helps that by the time I was 20, then it was good.
Speaker 3:Yeah, no, we taught you remember. You remember your very first credit card.
Speaker 2:I saw.
Speaker 3:So, but how did you get that card? Because you didn't have any credit.
Speaker 2:I think it was like it came in the mail, because no, it was.
Speaker 3:It's called a secured card. Remember, we had to put money on there. A secured credit card is when you put the money up first, and so that's how your first one was. I said you don't have any credit, so nobody will give you one. So they always start with okay, get a secured credit card for typically two, maybe $300. You'll get a secured card. And then you had that card for roughly four months and then they extended you credit. You didn't have to have the secured credit, you don't have to give them money.
Speaker 3:But the reason we did that is because I showed you how to. Okay, you're going to give them the $200. I think it was just $200. You're going to give them the $200. But then you're going to start to pay for your gas and your lunch or whatever on your card. And and then I had you pay it off like every two weeks, remember that. And I said that you had to pay these things off. You can't just pay the minimum, because it was they're small anyway at the time. And then I remember, I remember when you said hey, dad, in the mail, they said that and they gave they gave me a $500 credit limit. You remember that. Uh-huh Right. And how long do you remember how long you had that $500 credit limit for?
Speaker 2:A couple of months, maybe six months or something, and they raised it to a thousand.
Speaker 3:A thousand. But they did that because, like you were saying, it's exactly you were doing what Dispending your every the money you were going to spend anyway, right, gas, your food, your phone bill I don't know that you had any of the bills in that, really, but you're just spending that couple hundred bucks a month and paying it right back before the bill was actually due. So that showed a pattern of responsibility with your card. So refresh my memory on your second credit card when did you get your second one?
Speaker 2:I got my. Actually. I remember it was September of 2018.
Speaker 3:You were 19 19. So probably what? Six months full year after the first one.
Speaker 2:Uh, I think so. Yeah, almost, almost a year.
Speaker 3:And then that one gave you how much of a limit, like right out of the gate.
Speaker 2:I think a thousand, a thousand.
Speaker 3:Yeah, so now you got two credit cards, a thousand each, two thousand bucks, but you don't spend anywhere near two thousand dollars, right? But do you remember the reason I had? You get that second card? So you have two cards, thousand dollar limit each, two thousand dollars of limit, and remember the 30% rule.
Speaker 2:Yes, yes, yes.
Speaker 3:Explain the 30% rule.
Speaker 2:Only spend 30% of whatever your limit is.
Speaker 3:That's maximum, right, that's, and it's not the limit of each card. It's 30% of total. So now you were able to. If you have two thousand dollars for the credit cards, 30% is six hundred dollars. You could spend up to six hundred and not damage your credit in any way, okay, which you don't really spend that money, so you're okay. So you kept building, you kept building and then I know you got your credit score to a certain point, which I knew qualified for a certain card, because then we started to look at cards that had the cards with the benefits, right. So what was the card that gave you your first benefit?
Speaker 2:My Discover card.
Speaker 3:Yeah, yeah, I love Discover. They're one of the ones that give the most money cash back. They're a little harder to get than some of the other ones because you definitely have to have minimum 720 credit score to get that Discover card. But I think now that's it. That's just the three cards you have, right.
Speaker 2:I have an Apple credit card too.
Speaker 3:Oh, I remember that that's more of a convenience card and that one's new and I don't know a lot about it other than you know it's there, but now you're just a little over 21. And how much money do you have if you add all four credit cards up together worth of limits?
Speaker 2:Maybe seven or 8,000, I think.
Speaker 3:Seven or 8,000, yeah. So now you build up enough credit. Obviously you don't need anything, but if your card were to break down, you know you could put it on that if you didn't have it. But I know you've been a really good saver. Let's go through the process of when you said hey, let's buy the. I found a condo, I wanna buy it. Do you remember how that process went?
Speaker 2:Yes, it's a long process.
Speaker 3:What do you mean by that? Don't scare people.
Speaker 2:No, it's not a scary process, it's just it takes some time. But first you have to apply for it so that they, you know, you have to tell them the loan company, right?
Speaker 3:Yeah, the the loan.
Speaker 2:Apply for how much money you make your credit. You know how long you've been at your job. You have to be at your job for two years.
Speaker 3:Yeah, so it was funny. So they told us what you qualified for and then we went shopping. But being that I'm in real estate and I flip homes, what type of home did I tell you that I wanted you to find?
Speaker 2:Condo. Besides that, Like a renovated condo. Yes, yeah, yeah.
Speaker 3:We wanted to. Definitely I wanted to make sure that that faith went out there. She had enough money to buy the home, but not a lot of excess cash. To a lot of people when you buy a house you know you gotta go in there and fix this, that or whatever, and you could spend another thousands of dollars, you know, repairing anything. So I said you keep looking and when you find one that's been fully renovated and it's in your price point and obviously location was key, that's the one we'll look look at seriously. So then I remember you called me. I found it. I found it, I found it, I found it. I said what'd you find? And then you showed me.
Speaker 2:Well, I for weeks I spent every day on Zillow just looking at all these condos in the area that I wanted. So when I found the one that I really liked, I was so excited and I was like we have to go see it. We have to go see it. We went there, I fell in love with it and I was like I need it sold. I'm moving in.
Speaker 3:So then we started the process. So for some of you guys out there, think about this here's a 20 year old young lady who's working at a job that makes $15 an hour Now. She was there two years and at the same timeline, built her credit up from zero to where you're sitting at now.
Speaker 2:About like 745, 750.
Speaker 3:750, which is more than enough to buy a house. So you did that all on your own. I said okay. And then we found it okay, now it's time to buy it. Well, lucky for you, mom and dad are real estate agents. So we went out there and mom and I are representing agents on there and we got you involved in a down payment assistance program because you're a first time home buyer. How much money did that save you.
Speaker 2:Thousands, thousands, yes.
Speaker 3:So I'm gonna go ahead and break down the numbers, if you're okay with it. Okay, so the condo was $164,000, right. Two-bedroom, two-bath, fully renovated. This thing was gone through from top to bottom floors, the whole new kitchen cabinets, bathroom cabinets, tile, showers. I mean very nicely done place. So that's what I felt good about. Okay, this was a good purchase, you can go ahead with that. And then we got you involved in the down payment assistance program because you qualified, because you're a first time home buyer, right, which means that they put down the down payment. You don't have to Now. That doesn't mean that you need zero money to buy a house, because you still need money. Do you remember what kind of money that you needed?
Speaker 2:Like the closing cost.
Speaker 3:Yes, yeah, still gonna have to pay for closing cost. Typically, on whatever you're buying, it's about 1.5%, right? So Faith was able to get in there $164,000 condo get the down payment assistance program to do the down payment of the 3.5%. Then she had closing costs. Now we went through there. Can you remember what was the total money out of your pocket to buy this place?
Speaker 2:No, maybe like 2,000, I think.
Speaker 3:You were like 2,500.
Speaker 2:Yeah.
Speaker 3:So for $2,500, and she was prepared, though she had $10,000. She's like no, I have the down payment, but I'm like I says, matter of fact, we talked about it because there is a difference of monthly payment if you put the money down yourself or you do the down payment assistance program. Remember that conversation? Yes, how'd that go.
Speaker 2:We're very iffy. I wanted to pay less monthly, but then you said save all your money now and just pay a little bit more every month instead of paying it all for the down payment. So that's what we decided then is to save, keep all my money that I have now and just pay a little bit more every month.
Speaker 3:Yeah. So the difference was I remember the numbers, I remember all the numbers. So the difference was, if it had faith, put down the actual down payment money and cash and her closing costs it would have, she would have been out of pocket about Almost $9,000. And I says, well, faith, if we do the down payment assistance program, you're only gonna be out of pocket twenty five hundred. And the extra amount of the payment was sixty five dollars per month. And I says, well, let's do the math, because you're not gonna live there alone. You're gonna have a roommate who, basically, is gonna pay half of your mortgage. Right? I says I rather you stay cash rich, then be cash poor and equity rich. Right, because we never know what you know Life is gonna hand to us and it's always better to have cash put away, cash working, right. So I thought it was a good move on at this particular juncture where you're at, because you really didn't have any bills, you know your cars paid for and you know have no debt and that's why you're able to qualify. So just for you listening out there, because she qualified three factors one job, two years to had the credit, which was at the time like seven, thirty or something in three, that she could qualify for that down payment assistance program and save her cash. That's what made the equation really work.
Speaker 3:Well, so here you are, 20 years old, got your first condo and I think back, want obviously a very, very proud dad that you had the Work ethic to save and the mindset of money and how it works to be able to get yourself that, because you're gonna be one of Very, very, very few people that will never pay rent. Most people pay rent for a while before they're able to buy their first house. Whether it's a condo or a single family home, it doesn't matter. So your money from the age of 20? We fast forward in your 40 or 50 years old. You're like my money's always been working for me in my life. I've never Paid rent and thrown the money away right.
Speaker 3:And I think that's a phenomenal feat. I'm very happy, very happy. It's great. It's great. So, okay, so we got that condo. You're super excited. But here she is buying a condo and basically all she had was whatever was in her bedroom, right, yeah, so now we started to have to. You had to go shopping, and that's why I had you save that cash and doing the down payment assistance program, because if we didn't do that and you had to spend all that cash, then you really would have wiped yourself out cash wise. Having to, you know, get couches and plates and all the other stuff you need when you're gonna live on your own right. So Now, what's this October? So you've been in your condo six months. How is it?
Speaker 2:Like seven months, eight months eight months but it's great. It's great, yeah, I love it. I, covid, you know, kind of made things a little bit more difficult, but Other than that, I pay my mortgage every month. They pay my bills every month. I go to work every.
Speaker 3:Well, you're lucky because your position in the security world right as a dispatch, even though the mall basically closed down, right, you still had to be there because there had to be security walking around making sure no one was coming around and breaking into Stores or whatever, so you didn't actually lose your position. I think did you lose like a day of work or something for a?
Speaker 2:couple of weeks. I lost a couple hours, yeah, but then they came back.
Speaker 3:Yeah, they came back, so for you was pretty good, you know In and it called it didn't shut the world completely down, it shut it down, you know 50%, but coming back and now you're back strong, back strong now. So let's talk about share the people what your goals are, because I know you don't want to live in that condo forever. It's a two bedroom, two bath. It's roughly almost a thousand square feet, but that's not your forever home, is it?
Speaker 2:No, definitely not. Definitely. Hopefully, in the next Three years I'm shooting for I want to buy an actual house, a single family home. What?
Speaker 3:are you gonna do with this condo I?
Speaker 2:Would love to keep it and rent it out. Have it keep working for me.
Speaker 3:That's the game plan. That's definitely excellent because, look, you're barely 21, if I can fast forward 10 years and by the time you're 30, you've owned this condo 10 years. You've rented it more than than you ever lived in it and it's cash flowing and bill in equity. It's a great investment. And then whatever single family we end up finding you later, right, that's also working for you. So I think it's financially, it's a great position to be in. At your age. Most people are probably 30 or Late 20s before they're in the position that you're in. So it's a fantastic position. But share with the audience, because how is it been hard For your mindset of money Around your peers who maybe you don't have the same mindset of money? What do they say to you?
Speaker 2:During the process of me buying my condo, a lot of my friends are really excited and you know proud and happy for me.
Speaker 1:Even a lot of my family.
Speaker 2:They were all very excited and happy and proud.
Speaker 3:Okay, no, as we are again. I think if you ever see any 20 year old buying some sort of a property, you're like, wow, you know, and understanding though I, I, when people find out you did that, I always make sure to tell them faith did it 100% our own right. Mom and dad didn't cosign, mom and dad didn't give you the down payment. All I did is I started to show, talk to you and show you about money at a young age which developed a great work have, have ethic right and a right mindset around money. That money's not to be wasted, and you learn that valuable lesson from Jim Rohn about giving value right. So I think it's a great takeaway there. How excited are you for your next five years?
Speaker 2:Very excited I'm. You know I just turned 21. So the next five years of my life will be very exciting, very fun. I hope to work hard and make a lot of money.
Speaker 3:Okay, make, not just make money, but do good things with money. So I hope you guys all enjoyed that story because I certainly am very proud of her, um, the family's very proud of her, and I think the great takeaway here is is um, start talking to your kids or your siblings about money. You know, sometimes people treat money and I didn't want to say the words sex People. They don't want to talk about those two things. Right, and it's very important that we talk about money all the time and what you're doing with it. Don't be embarrassed and ask questions. It's good. It's good to ask questions about money, what you're doing, maybe if you don't know if you're doing the right things or the wrong things with it. So, faith, thanks for coming out here, thanks for doing the show. I know we gave a lot of great value out there. You have any uh, finishing things you want to say to the crowd?
Speaker 2:Uh, I just think. So much for listening and for having me here. Cool, all right.
Speaker 3:So, guys, if you like what you heard today, please subscribe to the channel. Um, a lot more inspiring stories coming up. So, uh, if you're on the podcast, subscribe. If you're on YouTube, smash that like button and subscribe there also. So, remember, I'd be releasing a new show every Wednesday. So, you guys, have a great week and we'll talk to you soon. Hey, everybody, hope you enjoyed that episode. Uh, really enjoyed making all these episodes for you. Remember, we're just having, uh, conversations with people's journey with money and the things that did right with it, the things that did wrong with it, and uh, how, how did they really come about getting their mindset with money? So, uh, every episode's different. We all have a good takeaway from them. So, do me a favor, hit the like button, smash the like button and subscribe to my channel, because every episode that I do is going to be different, as all our journeys are different. So, you guys, take care and we'll talk to you next week.