If you want to be financially successful you have to have this one thing

Friday, April 13th

What do most if not all financially successful people have in common?

If you're struggling to get your finances in order start here. Hopefully, you'll be able to take away some tips from our guest Conner.

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Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

The one thing all of financially successful people have is why it's. Wounding about a very sad it is seven figures all the information that you need to dominate your finances I instinct fighters if you are new to the podcast I'm glad you found us are excited to have you. If you're a loyal listener. Here every week welcome back. Always appreciate the love and spreading the word about the pod cast thank you two are friends and family first credit union big supporters. About financial education and they're helpful educated teaming Howard community that enjoy helping you live up financially healthy life. OK financially successful people have YT. They have a system Falwell. Thought out organized way of managing their money now today is 80% of the al-Qaeda now it's a good day. What happens I'd pay day what happens when the bills content is there any order and structure to what you do. We catch you with a friend of mine potter who is probably one of the most organized and systematic friends I have especially when it comes to with money. And I go to visit WW don't do your city good friend just got open up and tell us about your personal budget. Man I should've wrath of whiners and that might double life here Ankara here this morning on the very start on Friday. A make good event for next time. Our list or the beginning when you are growing up did you have a lot of conversations about money. Which your parents. Yet its interest thing I I've I thought about that make him a look back in the answer is no. Box I do remember as a kid growing up. The you know senior at least once a month my eight father sit at the kitchen table. And you know never forgot he had a yellow. Legal pad and you know bunch of pieces of paper spread out and in kind of digging through bills like you people do and and obviously as we've. You know technology has changed and online bill pay and apps and all of these things I'm which a lot of really great useful tools. What I have found is I think sometimes some of those convenience auto bill pay you can kind youth are hurt a little bit because it sometimes. Loses sight of money and money out and how much you're actually pay so you wanna use those things I think a lot to your advantage but for me he. It it wasn't necessarily what might my parents have me down or or somebody specifically said he doubts that this is the best way you wanna go out. Managing your monthly finance is your bills. For me it's been more about Mike my career I've been in a 100% commission sales my entire life so every single month. It is. The money that comes and has been different and one month is different than the next month and vice Versa so you're always constantly looking at. Money coming in vs money going out yeah because it's not an exact sat dollar amount and also. The way that I been paid traditionally for my entire career his van twice a month. Fifteenth and thirtieth. So if you know you're gonna get paid in the fifteen to thirty F. Do you wanna make sure that you're and it's only a certain amount of money coming in a certain amount of money going out you wanna make sure that you were planning accordingly. And also. Budgeting enough to have money on the specific times of the memorable time a point in your life and money was really tie in you're like oh god I don't know if under able to make it. I I'll never forget basically you know started my career was at about 300 dollars in my savings account when I graduated from college. And ended up buying a suit and tie and then next thing you know. You know I'm in my career and I'm in sales and I'm just kind of budgeting. You know for your for your future and obviously those needs change you grow up you you yeah get married and and the responsibilities and not a bills that you have. Increase yeah. But really you know I am the big pet peeve when it comes to debt in general obviously there's an emergency situations or medical or. Insinuating circumstances that happen and where you have to get yourself and adapt because you need the money immediately yes but traditionally. Most of the time that people are getting into debt. It's because they're over extending themselves they're overspending in and it takes discipline it will that that's what does and so that kind of goes back to the hole. You know or how do you how do you manage it well there's no right or wrong you know. There's no right or wrong plan for her for anybody it's an individual thing for me but. I have what works for Austin and it is good old fashion. You know. Piece of paper and pat. So we know for me when it comes in just spreadsheet guy aren't you know I'm not a spreadsheet I am actually met where we. We use certain things I guess and her family like for example I mentioned what technology works well low paying your bills online makes it Thomas sounds right because. It you can set up the account I mean I can bring you a check right now if I wanted to I would log in tonight. Financial institution putting your dressing and your formations censure Checketts dot okay. Debt that stuff works well because it just speeds the process up and it makes a quick keeps it organized you can look at record of all those things so most people off course do online bill paying. What I meant by the sometimes that you can lose sight of the money coming in in the money going out is if you're setting up all of your accounts where. The money is automatically going to be you know pulled out of that well you know sometimes that's good for example on mortgage write you wanna have. That protected because that's a very important thing meant but if you're not looking out and saying this is how much McCain will though as this is how much I cellphone bill as this is how much. My car payment is that all of those things and just automatically comes out. And they all come out at different times of the month. And you really have to have a certain amount of money set aside in your checking account. And the problem is what happens is and life gets in the way yeah you buy gas and go to the grocery store you do all those things so the way the week the way that we do it it is. About 60% of our bills are paid at the end of the month on and probably even more since 70% of those are paid at the end of the month when for me I get a commission which is a larger payment for me. The Rus tumor done on the fifteenth. But it is good old fashion I put a minute we call it the bills folder it sits up in the office anything that comes in the house goes in the bills Fuller. On the fourteenth the day before I get paid. I open Amal up I write them all down on a piece of paper on you know white piece favored just exact really gather in front of me right now and I write them all down. And I added up and then it becomes you know X amount of dollars while I know how much money I have in my account. The first things are gonna get paid. Are gonna be the bills it's not gonna be well we need this much money for groceries or we need this much money four. You know dinner tonight eater we need this all of the luxury items I guess you could say yeah the bills get paid first. Then when that's left over. Then you know it may be. 300 dollars and then the next step is okay we're gonna need gas for the car here's forty hours for gas in the car we're going to need to pay a baby sitter on Tuesday night. Here's 49 dollars for the baby sis it every month your cannery every fifteen days okay every fifteen occasionally residences so once so what we've gotten into lately doing and then and it's kind of a process that kind of evolves is. As your needs change and expenses in your house change. My wife will essentially send me attacks. And say you know here's AEI a number of different things. That are going to be coming up over the next week we're gonna need money for the baby sitter we're gonna need money for. The boy's haircut. Did you play and get stuck gas steps in the beginning of the month no no I wouldn't know what that's crazy about it but it just does does it goes so I think it's for right we've gotten into a pattern now work. And a weekly basis okay what kind of thinking about what's going to be coming up over the next seven that seven to fourteen days. In its you have to be more her. And I guess pro active with this because you went down from a two family income now down to just yours right I would say from a. Full two family income to about a one and half income so welcome to my wife we've been very fortunate where she was in a full time position. And ended up leaving your full time position but is essentially picked up. A consulting and contracting job where she still able to bring in an income. But it's not to the level of her full time where he is so far been very very helpful obviously and supplementing the work that I'm doing. But Yost it has been a it has been an adjustment and we've had says it. We look at it a little bit more and is this the door growth velocity of grabbing the piece of paper and writing down all of the bills and making sure. That you have you know different accounts and I'll I'll talk about that for different items. That philosophy hasn't changed but I think it's that the week in and week out of that actual you know that's slush money out I'm just gonna go to the reverse your store and spend eighty or ninety dollars yeah. That may not be a relief hospital at about eight important consciously what you're exactly in our families they think is your wife decided to do get because she wanted to dedicate timing and money crushes. Awesome yes and if I think it really does come down to you okay now we are really come through everything antsy with the need verses what's a lot and really decide. What's in need him what to watch and. And plan for itself for you know so big against her for example. You're gonna have birthday parties you're gonna have. Baby shower gaffes well if you know he wanted to do that when you get paid you know I don't care if that's something that can come up in May or June or July. One of the things that we talked about number four is having and a variety of different checking accounts in different savings accounts and they're in the this is interesting because I don't so we don't get the only way you OK so get your perfect example we have. We have three checking accounts and we have to savings do you do this separate enjoy it. I'm you know there'll there'll joint. There at all joint accounts are so my wife and have access to all of them okay but they're for different reasons so we for example have one specific account. That is dedicated to nothing but the mortgage. Our insurance says. Com which is a ball bundled together and that is for example an account that or an expense that is automatically pulled out. Because you don't ever wanna mess and insurance payment you don't ever want to miss a mortgage payment. Is wells kids' college education since the money go in automatically to right from the paycheck oriented edit now it okay now actually it actually goes into my main checking account and I transfer because everybody's on the fifteenth not thirty F I literally right down. Boys' college education. Insurance. Mortgage and I make sure that there's enough money and that account every fifteen days to cover those spelled OK okay. But what happens is my wife uses one of the checking accounts for day to day expenses I use one of the checking accounts for days expenses. So when I write down at the end of that at fifteen on the fifteenth through the thirtieth of the month and we have all those things Beebe said her gas for the car groceries. In all of the bit you know things I will literally figure out OK we're gonna need X amount dollars for the next fifteen days that's the money that will go into my wife's account. In the same thing for me I'm gonna need acts for gas tax for groceries. This for a lot of Ali now that we're both on each other's accounts for Yost she has an expense checking cheers and an account that she uses for John King. For all of the things that she's got essentially accomplish in the next fifteen days in the same thing was me. And we try to stick with that now do you have. And the mindset with that is it 12 seed and number it helps you. Understand how much when he really had. Sent a cracked that's exactly right because that's exactly right because when you you have this you have to force yourself to make those decisions because if you. Itemize it you say forty dollars for gas 150 hours sugar are sure he's. You know fifty hours for the boys haircuts for both of them. When you run and you know next thing you know we wanted to pop in and grab a coffee or something comes up you wanna have lunch. You have to say to yourself OK yeah I can do that if I wanted to. But then. I'm gonna in the if the seven days later and an Indian media have more money and that's really not part of the plan for the next you know fifteen weeks. And they don't you sing because if you see a number in your account 2000 dollars. And announced that the UC fifty dollars that's is that era in three more days. That's exactly like that so they are saying that's exactly how it works are not on us on a small level now and then back to the point about having so you have a main. Checking account that pays all the sense she put money and pay all your bills yet your mortgage 600 Sutter I had individual checking accounts pretty use for these things that you budgeted. And then you know you said you are all planning a hat but we available we refer to as a slush savings account. So if you know for exam very corporate word by the way yes this election yet. Call it torture extra savings account not your your main savings account you wanna try to. You know it's a do little now stagger you really try to save you know when you save your count yet but the reason we use that is as simple as that sounds if you know you have a baby shower coming out. You know you have your nephew's birthday coming out I don't need to spend eighty dollars when you do the budget on the fifteenth and thirtieth of the month. Let's say you have an extra 150 dollars after the bills are paid or an extra 200 hours after you've done all that. Take 75 dollars of it and throw it into your main savings account but take the other 75 and put it into an account it's just there. So that when it comes time to go on Amazon and spend a fifty dollar gift. Guess if you get to do you get to say hey we just thought the gift yanked the 75 dollars back out. Send a credit card payment immediately. And it's paid for our. I say you do use credit cards that of course yes so we have your mindset is paid that's my mindset is and the thirtieth of every month. The credit card balances at year. It's there of course does that happen all the time now does that happen. Most of the time that the mentality is that you know I get really really nervous if the credit card balances in the you know. 5600 dollar range because for me it should really only be used as. If it's necessary to go beyond the things that we were RD appropriated for the fifteenth and the thirty Africa and it's also sometimes a convenience factor because it's linked to an Amazon or it's linked to a hotel right if you're gonna make a hotel reservation or things like yeah so yeah and the big I guess the bigger things that you didn't kind of planned for that you have to deal. But then when you get paid. It's a line item in the credit card like go and look at the balance figure out how much it is and it's a lot. More challenging and it's also a lot more liberating that if you get paid in you do all your bills. And you open up that you and you go online and you plug in your whatever credit card and it's 130 dollars. Well that make you feel a lot better when you go great I just wrote a check for 130 dollars and I still have a little money left over then when you open up their credit card and it's. 3000 dollars or 4000 dollars. It's it's a whole different you know feel land of of what you feel like at the end of the month. So just Stephen saying those numbers. Didn't you all feel the weight of hearing under a dollars compared to when you said a 3000 dollar for a thousand dollars as the feels overwhelming exactly could just cited. That you would be the winds to or you just a numbers guy and it was just very natural for you in your right to decide you would take on it responsibility yeah I think. I'm the answer is I'm not a numbers guy I'm actually probably very horrible at math how do. But I can use a calculator. Yeah yeah just what a cub and general I didn't do well in math and and high school hurt or even even touch it in college but. It's not really Mathis it's just the most money NN money out and and I think it has to go back to my career in the fact that. Being in commission sales and always constant you know constantly looking at. Money inverse is money out. It just became and I also I can also kind of enjoy you know I don't know maybe it's because I'm a little bit of a control freak we are I wanna make sure you tell a little just a little. But but it's more about I wanna I wanna put our family and the best position yeah I'm too. One just making sure that all we're t.s are crossed and I's are dotted. That are crowded is in good standing then we have the ability to we want to make a larger purchase. That we've got great credit but also you wanna deal to put yourself in the position where when you wanna buy a new swing set for your kids. You can say okay you know. There's not seven other things that were the overburdened with financial reason that if we wanna go and spend X on a dollars on a swing set for our family. Well okay the money's there and our savings because we've done all the right things over the years Q yes he got down continue to save. You know live within our means that the big inning that's the biggest. Every single person that's there and met share every week says the same exact. And it's different for everybody an end and we look it's it's. People's household incomes are different and and but the same. Things can apply right whether you're happy. 50000 dollar household income or whether you have a 500000 are household income. It just it did the same. Principals can apply it's just instead of making you know a 189 dark car payment meteor and the ability where you can make a 500 our month our payment and or. Spend something you know differently or by a bit more of banks so yeah but the same things apply essentially so and now often well. Thank you so much and I hope everybody took a way at least. Some little nuggets. Financial nuggets today because it. It would its theory interesting and fascinating sometimes it's uncomfortable to talk about money now than he really wants him. They wanna talk about the new kitchen counter tops but when it comes to how much money do you savor how you do it. Yeah ten hot shots but it's very fascinating and interesting when you do learn. How people approach their budgets and why they are success. So and the and the only other thing that I would win add to it you know about the whole layered. Accounts and in variety of accounts yeah. It's also very easy to. Protect yourself by setting up. You know everybody knows about overdraft they are different accounts but. Cinema for everything you know first for example you if you have something to pay specifically pay your bills there's no reason that you can't have an overdraft linked to a mortgage account. There's no reason you can't have it linked to. You know savings account or or or variety but you get yourself into a system where. You're you're looking at the money coming in and coming out and it's not just one account we just use it repair bills whenever. The plant planned it out I mean that's that's the biggest the most important thing is to is to do and I I I don't it's not great for the environment and I counseling get emails that say you know. Oh we know we open up your whatever your financial accounting is and he wanted just received you know email instead of paper I always clicked now. I want you to Kazan nursing and a misdemeanor count I don't wanna miss any now and I wanna do on the bills folder. I wanna be there I want to physically open and up and wanna look at it on a write it down a piece of paper. And it's done every fifth. Even yeah thirtieth remembers mom. But again you know what's coming in what's going our hands and you know if you wanna find something that he plans to. He's very very welcome. And again there's no right Iran waited Jimmy you just have to figure out what things. Is most comfortable for you that you have to have a system in place so you can be one of those financially successful diva. Married have a great weekend if you ever have any questions or suggestions for a podcast episode just reach out to meet CN BF Rochester bug dot com. Thank you for taking the time to listen to the podcast I'm Rochester red stack comes an IC using Google flag and tell on a friend about us. We will talk to you next week in the meantime dominate your finances.