MFREE 065 TRAILER #2 WITH CHARLES MCKINNEY: FINANCIAL WISDOM

Summary 

My father taught me, he said, when you get paid, pay yourself first. Soyou get money from whatever jobyou're doing. And what does thatmean? You got to put it in a savingsaccount you have to do somethingwith it where it's not used. Then yougot your investment play money. youcan take that and go and play in thestock market or whatever. Thenyou've got the money that comes inand just bounces right out into theIRA.

That money's in there. Max it out,every year, and don't even thinkabout it. then TSP came along. Oh,there you go. Percentage automatic,gone. So what I see in the bankgrowing in my checking account isjust what's left over from payingmyself.

And then from that goes the budgetof, okay, rent or mortgage, school orwhatever, fuel, groceries all that, billsall those kinds of things. That all getssectioned off. And then what's reallyleft, we can decide, oh, do we want todo something fun like go out todinner?" Or do we just throw it in theother account for safekeeping andbuild that up for bigger fun later on?

With that, the idea is to being debtfree. So another thing that I learned isget that good credit and maintain it.Don't use a credit card for credit.

Use it as a means to not deplete yourliquid cash and then pay it off in fullbecause you're not spending moneythat you don't have with a credit card.So you're building credit and mycredit is amazing. It's in the green. It'sway over. It's good.

Being debt free is the first thing.Paying things down so that you don'towe when you're leaving, becauseyou don't know what your stream isgoing to be your incoming stream isgoing to be.

https://www.linkedin.com/in/cgmckinneyii/

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Transcript

Charles McKinney: 0:04

My father taught me, he said, when you get paid, pay yourself first. So you get money from whatever job you're doing. And what does that mean? You got to put it in a savings account you have to do something with it where it's not used. Then you got your investment play money. you can take that and go and play in the stock market or whatever. Then you've got the money that comes in and just bounces right out into the IRA. that money's in there. Max it out, every year, and don't even think about it. then TSP came along. Oh, there you go. Percentage automatic, gone. So what I see in the bank growing in my checking account is just what's left over from paying myself. And then from that goes the budget of, okay, rent or mortgage, school or whatever, fuel, groceries all that, bills all those kinds of things. That all gets sectioned off. And then what's really left, we can decide, oh, do we want to do something fun like go out to dinner?" Or do we just throw it in the other account for safekeeping and build that up for bigger fun later on? With that, the idea is to being debt free. So another thing that I learned is get that good credit and maintain it. Don't use a credit card for credit. Use it as a means to not deplete your liquid cash and then pay it off in full because you're not spending money that you don't have with a credit card. So you're building credit and my credit is amazing. It's in the green. It's way over. It's good. Being debt free is the first thing. Paying things down so that you don't owe when you're leaving, because you don't know what your stream is going to be your incoming stream is going to be.