1 00:00:00,341 --> 00:00:03,107 Speaker 1: Hi, I'm Stacey Hyde and I'm back for another episode 2 00:00:03,107 --> 00:00:05,732 of Better Financial Health in 15 Minutes or Less. 3 00:00:05,732 --> 00:00:11,848 And let's get real here there's been kind of a month or so that 4 00:00:11,848 --> 00:00:16,625 we haven't posted and part of the reason was I was out in 5 00:00:16,664 --> 00:00:20,734 Colorado enjoying the cooler weather out there. 6 00:00:20,734 --> 00:00:25,951 But it made me think about goals and about how, especially 7 00:00:25,990 --> 00:00:29,064 when you're younger, you know, just getting out of school or 8 00:00:29,125 --> 00:00:33,582 just starting your family, like thinking about retirement and 9 00:00:34,505 --> 00:00:38,652 what your goals should be, can be really hard because you don't 10 00:00:38,652 --> 00:00:42,328 know what you're going to be doing next year, much less 30 11 00:00:42,387 --> 00:00:43,049 years from now. 12 00:00:43,049 --> 00:00:47,320 But that doesn't mean that you shouldn't start setting money 13 00:00:47,401 --> 00:00:47,841 aside. 14 00:00:47,841 --> 00:00:53,156 But, as I've said on here before, not everything you save 15 00:00:53,277 --> 00:00:56,744 for should necessarily be in a retirement account, because 16 00:00:56,805 --> 00:01:00,682 those retirement accounts have rules you have to be 59 and a 17 00:01:00,722 --> 00:01:05,912 half to get money out without a penalty, all of those types of 18 00:01:05,951 --> 00:01:08,947 things which they're great and there's huge benefits. 19 00:01:08,947 --> 00:01:16,070 We'll talk more about other subjects in the one big ditaful 20 00:01:16,131 --> 00:01:20,581 bill on our next episode, but I wanted to talk about that and 21 00:01:20,781 --> 00:01:23,664 because it did make me think about goals and because it did 22 00:01:23,683 --> 00:01:29,209 make me think about goals when I was starting my career, I had 23 00:01:29,248 --> 00:01:31,430 never I'd been to Colorado once. 24 00:01:31,430 --> 00:01:38,516 But as I got older and my kids got older and my husband and I 25 00:01:38,596 --> 00:01:45,361 started doing different things, we discovered that we loved the 26 00:01:45,382 --> 00:01:48,831 Mountain West and so that became one of our goals was to own 27 00:01:48,939 --> 00:01:50,942 property out in Colorado. 28 00:01:50,942 --> 00:01:56,852 But had we not and quite frankly that would have never 29 00:01:56,912 --> 00:02:02,087 occurred to us early on because we we would go on beach trips. 30 00:02:02,087 --> 00:02:05,513 We did take our kids skiing when they were younger, but we'd 31 00:02:05,513 --> 00:02:09,902 never been out there in the summertime, and so if we had 32 00:02:10,103 --> 00:02:15,811 waited to save for that until after we decided that that was a 33 00:02:15,811 --> 00:02:18,895 goal of ours, we never would have been able to do it. 34 00:02:19,540 --> 00:02:26,570 But early on we were diligent savers, really tried to live 35 00:02:26,591 --> 00:02:30,842 within our means, and a real hack to doing that and I share 36 00:02:30,882 --> 00:02:36,189 this with my daughter and the children of clients that we work 37 00:02:36,189 --> 00:02:43,387 with the real key to being a sort of a magnificent saver is 38 00:02:43,828 --> 00:02:47,655 when you start out your career you're usually not making a ton 39 00:02:47,699 --> 00:02:48,080 of money. 40 00:02:48,080 --> 00:02:52,955 But then if you really get in there and you start working hard 41 00:02:52,955 --> 00:02:55,784 and you work somewhere where they recognize you for what you 42 00:02:55,824 --> 00:03:01,000 do, you probably get some pretty big pay increases pretty 43 00:03:01,120 --> 00:03:06,552 quickly If you can maybe raise your standard of living a little 44 00:03:06,552 --> 00:03:06,812 bit. 45 00:03:06,812 --> 00:03:09,206 If you're not in the safest neighborhood, maybe move to a 46 00:03:09,247 --> 00:03:11,842 little bit safer neighborhood, maybe get a little more reliable 47 00:03:11,842 --> 00:03:15,893 car, but beyond that you don't really change what you do. 48 00:03:15,893 --> 00:03:19,568 And you start saving that money and setting it aside and 49 00:03:19,647 --> 00:03:22,806 investing it not just putting it in a savings account, earning, 50 00:03:22,967 --> 00:03:27,123 you know, maybe 4%, but actually investing it and letting it 51 00:03:27,183 --> 00:03:27,685 grow. 52 00:03:27,685 --> 00:03:32,342 Then, by the time you get to be old, like me in your middle 50s 53 00:03:32,342 --> 00:03:33,989 you have options. 54 00:03:33,989 --> 00:03:35,466 There's things that you can do. 55 00:03:35,466 --> 00:03:37,727 We work with a lot of people. 56 00:03:37,727 --> 00:03:41,502 The thing they want to do is leave the workforce early so it 57 00:03:41,542 --> 00:03:43,348 can open that as an option. 58 00:03:43,348 --> 00:03:52,462 Force early, so it can open that as an option. 59 00:03:52,462 --> 00:03:53,444 It can be like us wanting a second home. 60 00:03:53,444 --> 00:03:55,048 It could be helping your children buy their first home. 61 00:03:55,048 --> 00:03:57,774 It can be anything that you don't know now that. 62 00:03:57,774 --> 00:04:03,062 But by being diligent, setting that money aside, saving and 63 00:04:03,122 --> 00:04:07,250 investing it, you give yourself options. 64 00:04:07,250 --> 00:04:11,802 It also means that as you're going through, there'll be 65 00:04:11,883 --> 00:04:14,788 things that you may think, oh, I kind of want that. 66 00:04:14,788 --> 00:04:18,704 But then you look at it and you're like, but really, are we 67 00:04:18,744 --> 00:04:20,276 going to have time For us? 68 00:04:20,838 --> 00:04:24,475 The big purchase that we really thought hard about but 69 00:04:24,615 --> 00:04:27,867 ultimately said no to and oh, thank God we did was buying a 70 00:04:27,887 --> 00:04:28,168 boat. 71 00:04:28,168 --> 00:04:31,879 We literally own everything for a boat except the boat. 72 00:04:31,879 --> 00:04:33,562 But guess what? 73 00:04:33,562 --> 00:04:34,665 We can rent a boat. 74 00:04:34,665 --> 00:04:36,267 It doesn't cost that much money . 75 00:04:36,267 --> 00:04:40,257 But if we bought a boat, it would cost a ton of money, 76 00:04:40,517 --> 00:04:43,500 there's lots of costs associated with it, it would cost a ton of 77 00:04:43,500 --> 00:04:44,601 money, there's lots of costs associated with it, and we 78 00:04:44,622 --> 00:04:46,504 wouldn't have used it very much. 79 00:04:46,504 --> 00:04:53,129 And so we, thankfully, made the decision not to buy the boat. 80 00:04:53,310 --> 00:04:54,531 It could be anything. 81 00:04:54,531 --> 00:04:56,172 For some people that's a motorcycle. 82 00:04:56,172 --> 00:04:59,617 For some people, for a lot of people, it's an RV. 83 00:04:59,617 --> 00:05:02,923 You know, really, look at, is that something that I can rent 84 00:05:03,064 --> 00:05:07,658 and use and see if it's going to be something that we really, 85 00:05:07,718 --> 00:05:08,259 really want? 86 00:05:08,259 --> 00:05:13,870 For us, we kept going out to Colorado and we rented a place, 87 00:05:13,975 --> 00:05:17,463 and we really spent a week and then a couple of weeks and 88 00:05:17,543 --> 00:05:21,059 figured out, well, we really want to be here and we built a 89 00:05:21,119 --> 00:05:23,425 community there as well, and so for us, that became a yes, we 90 00:05:23,444 --> 00:05:24,807 really want to be here and we built a community there as well, 91 00:05:24,807 --> 00:05:27,033 and so for us, that became a yes, we absolutely want to do 92 00:05:27,074 --> 00:05:28,857 this On paper. 93 00:05:28,857 --> 00:05:31,904 Does it make great financial sense. 94 00:05:31,904 --> 00:05:35,021 It does, okay, I mean, if we continue to get appreciation, 95 00:05:35,083 --> 00:05:38,223 yes, but it's more about a lifestyle choice. 96 00:05:38,815 --> 00:05:44,067 And that's the thing about goals is you are saving just 97 00:05:44,168 --> 00:05:47,663 generally and then, as you go on , things get specific. 98 00:05:47,663 --> 00:05:50,819 You know, another thing that comes up for a lot of people is 99 00:05:50,901 --> 00:05:53,925 we decided we wanted our children to go to private school 100 00:05:53,925 --> 00:05:55,548 for middle and high school. 101 00:05:55,548 --> 00:06:00,680 That was not an inexpensive choice and we didn't know that 102 00:06:00,721 --> 00:06:01,925 that was going to be a goal. 103 00:06:01,925 --> 00:06:08,363 We kind of thought it might be, but we made the choice to send 104 00:06:08,384 --> 00:06:10,007 them to public school for elementary. 105 00:06:10,007 --> 00:06:13,605 Save the money that we would have spent and that funded their 106 00:06:13,605 --> 00:06:16,516 college and that was a good goal for us and that was 107 00:06:16,536 --> 00:06:19,545 something that was more immediate, that we could really 108 00:06:19,625 --> 00:06:22,283 see and kind of had a pretty good idea that was going to be a 109 00:06:22,283 --> 00:06:22,605 goal. 110 00:06:23,415 --> 00:06:27,247 So I think sometimes we get caught up in I don't know what 111 00:06:27,288 --> 00:06:29,855 my goals are, so therefore I'm not going to save. 112 00:06:29,855 --> 00:06:32,163 That's really the wrong approach. 113 00:06:32,163 --> 00:06:36,475 You really need to save generally because it's going to 114 00:06:36,514 --> 00:06:40,225 give you options and even if there is nothing big that you 115 00:06:40,264 --> 00:06:44,154 want to do, it can allow you to maybe make different career 116 00:06:44,274 --> 00:06:44,795 choices. 117 00:06:44,795 --> 00:06:46,439 It can give you peace of mind. 118 00:06:46,439 --> 00:06:49,646 The number one thing couples fight about is money. 119 00:06:49,646 --> 00:06:55,509 And if money is not an issue, if there's good savings, things 120 00:06:55,569 --> 00:06:59,158 are set aside, that's not going to cause issues with you and 121 00:06:59,177 --> 00:06:59,738 your partner. 122 00:06:59,738 --> 00:07:04,439 So you don't have to know what your goals are to start saving 123 00:07:04,499 --> 00:07:04,880 for them. 124 00:07:04,880 --> 00:07:10,038 The goal can just be saving as its own goal, because it has 125 00:07:10,360 --> 00:07:11,223 lots of virtues. 126 00:07:11,223 --> 00:07:15,976 And boy, if you've ever used a financial calculator and looked 127 00:07:16,016 --> 00:07:20,124 at the value of compounding over time, I promise you you will 128 00:07:20,163 --> 00:07:24,841 want to start as early as possible, because time is your 129 00:07:24,922 --> 00:07:25,884 best investment. 130 00:07:25,884 --> 00:07:27,447 Thanks for tuning in. 131 00:07:27,447 --> 00:07:30,862 This has been another episode of Better Financial Health in 15 132 00:07:30,862 --> 00:07:31,665 Minutes or Less.