You CAN retire early and here's how

Friday, November 10th

No matter where you are financially. No matter how much money you earn. You CAN retire early.

We cash in with expert Deacon Hayes founder of Well Kept Wallet and author of "You Can Retire Early!: Everything You Need to Achieve Financial Independence When You Want It"

Deacon gives us the steps we need to take to achieve financial freedom at any age.


Thanks to our friends at Family First Credit Union for supporting the $even Figure$ podcast
A helpful, educated team in our community that enjoys helping you live a financially healthy life


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

Welcome to the seven figures podcast I'm seeing waters and the goal this weekly podcasting is to give you of all the information that you need to dominate your finances. Buchanan. And will achieve the financial freedom. You just have to have a clear vision what is your financial ball. Picture it. Then commit to a plan it's gonna get chip hair sticks to that planned and without a doubt you will succeed you can never retire early. Green I tell you how today. First we want to thank you for taking the time I'm your date China podcast we really appreciate your reviews and ratings and sharing the podcast with friends. And speaking of friends family first credit union big supporters of the seven figures podcast and big supporters are financial education earning and learning go hand in hand and Phillippe first it's here to help you in the greater Rochester community with about. So how can you retire early sweet cash and other experts deep in taste. The first mad T stand it when I was against Anna stacking Benjamin's podcast deacon is a super Smart guy. Founder of well kept wallet a financial education company he's been featured in Yahoo! finance and CNN money. An author of the book you can retire early. Deacon thank you so much for how open us up attests. Eight candidate you Grammy. There are very anxious to find out how we can retire early in the steps that we need to take the first if you do mine wanted to bring Amy out of listener of the shallow could they always encourage anyone to reach out at any time. Which specific areas of finance at their struggling with us. Anything Amy's question. He's a very common question. Amy Amy to begin. Cranky parents. Really hurt me here he neat you're divorced but about to get remarried right we look at OK so now talk us through this scenario the question that you have. No banking entertainment book come from a very. Bad. Financial. Relationship with her accent. So to protect her we didn't know what goes back. Case scenario would be to move. Not go through that same. You're opening yourself right now I can tell. I can tell you trying to edit the way to describe your pants or religion just too good did you antique dinner. And who is out Ali being around you do both religious and spent panting care about paying bills can. Apollo Napoli and. I can't say you're a cautious now going into vests. Yes I'm on both had children and Palo. UK's. A lot of money in chats where. And I don't get a chance where but I don't know what the best way to handle the kids its finances moves while. And you discuss this at all. Do you have a game plan anyone and see if it's the right way to go lower. Yeah student and do Aiken joining count our house or build them earn. Separate account so that the trial lemon to back from saying. It's coming out of the that separate account and that he needed to write something comes out of his separate account. Had done I feel like we'll. Pinging. Nap together. So. It is you know Colin elected he was saying and and that what where I would say it. You know it's Smart he'd be cautious straight essentially pay your distance. You have this kind of experience you're trying to make sure that you do you know this new marriage the right way right. Don't know what I would say it. Focus some on the celts right now and focus more on combining their finances on keeper. Right and so. Really kind of saying okay but have worn piece of paper that kind of combines all the numbers you know. What's what's the when he brings in what are you bringing income what the child support that he has the K what are the kid that duties everything on one piece of paper and an end error massage right. You know my wife and I have. She edit what I call girl Carol you know and if not they were living separate lives it may be easier for her because she had to cheat and a bucket issues that hate. If I wanted to go out to called Hewitt friends I wanna buy them clothes that's really not but did she has the capacity do that so. I understand that peers saying. All we had separate account Ehrlich we're not living together on but it yelled we have it all in one login rights so yet does separate accounts that would accrue on the diet challenge. I'm an open you can see what's happening right. Compared to gets it and accountability in writers are trusting it there. Eight okay that the thing that really recommended that you guys put together some common cold spray. I am you want to put your kids to college you wanna go on a family vacation want to year. You know things like that. Where's you and your new husband station eight what are we wanna do it a family and then let those goals between your budget. Not necessarily you know what you want to what you want but really what yet one has a family. So how much do you guys put into your individual accounts deacon. Did you percentage of your paycheck sir how do you determine. How much goes and. Really the goal dictate that right kind of I mean. They know what's left over restoration so yeah no where prepaid preparer mortgaged our right we're pretty certain amount of money every month away toward travel that's been put to rest and come tips. That's gonna teach you treat you right Internet have a running bit in so. You know birthdays. You know anniversaries. You know any type of special occasion. I'm making sure that you would get to channel. So really letting the gold in the budget and less a percentage. OK so since they both hit kids. How do we paid for what they need to repay out of our separate account or that the joint account. It would come out of like a joint account or they don't become the Stanley money I did get I get you would be just making sure that everything stolen papers saying. They you know make sure that particular getting a fair shake you know that not one in his skating like designer clothes in the other kids you you know restore quotes you know. So. And that's where that's what putting it down on paper really helps YouTube. In say is it is that they're in if not you can start to adjust the numbers a little bit and stay. Hey world you're in three activities in. Particularly in wind and you know that's really not. Realistic so we did that at a trim down Warren you know one is activities or whatever. And so credit be less about you know asks is better and more like as a fairly you articles. And then here's where the money's coming from and you know beyond that you know you don't know how. You know. There's not much flexibility so it's not like yours you college you know you can't do a lot of logic you're saying well to do that as they're they're not in the budget. General corporate. Is it the biggest challenges or any other question that you have. You know who really clear about how there. Start a whole part of the deal is how to move forward. Yeah setting that ultimate goal first just have that one clear vision that you're both trying to achieve. Absolutely yeah and that you shouldn't but it kind of in the sit down forgot those major goals and then put all the when it won't keep her for both sides. I'm and then make sure that kids are gonna fair shake in and I think that's a great place to start. Amy good luck to you congratulations. Are either way Erica there are prone to summer. Now let's move into your block which is you Kenya every tire early. Now for some people there think and never right. The money using coming in for me to retire early would be talking about but in your book you give us the stats and how anybody can achieve this. You know and it's funny we actually thought the same way you re my wife and I we got very rich city to agree and then. And you know retired there was even an option and aren't that that player elect. Hey we gotta tackle the bat first before we can start saving money Kirk Perry you know. I'm old so yeah that the book is really kind of designed to help people like you're are. He studies based upon you know people you can relate to you. We know whether they get a real estate or stock market where. Creating a business. And saying hey this is possible you know. What are my favorite stories it kind of reference in the book is Roger Bannister you the first guy to run a four minute mile before him nobody in orbit while. After him hundreds of people ran a Foreman in my all right it's like what you see that person. You do what you think is impossible he make in the date and it's possible. What then for you it starts to become a reality you know that this could happen yeah and so that's what these doors to a cute kind of pictures of what street. Well I can do that. The general rule of thumb is why how much can you live off of is very easy way to look at the big picture and what is that. Finish line what does that involve with that number that we should be striving for. It really depends greatly if you live in New York City it can be a lot different than if you live in knight's Indiana right. In it so really kind of focusing on like where where do you live like what is the cost of living in your area. And if you if you don't make a lot of money it might also consider moving you know we could talk about some places like. Ecuador you know where you can move in and live like a king on you know 4000 dollars a month. Who adore you. Pick a number I wouldn't work. What are your career and I knew I had he. It buried and Ecuador's civil. But the reality is is it doesn't that there could only get. It's just crazy to me. Is CNET is your friend Chad not have a feeling here. I know that they are in the US but I think it hit him and his wife it was a it was a dream of there's the LeBron will not go to that they're not doing it forever they're all doing it per year right okay I'll let. But they can do that because they're financially independent. You know I think it that the thing that. You can say what would our Michael's. Inept credit dictates how much money need to live off okay so. You know if you're cool sort of live and Ecuador and only three to four grand a month later. Well then you're gonna need 36048000. Dollars in income each year to be able to do that. Calm until the New York City willing to try get in need of pondered then yeah nor 150 dead a year. And so the people that retired earlier typically live in an area where the cost of living is lower back intellect. It's less about stuff it's less about static in the more about. Freedom you know and that that that dictate their plan. And you said it in the book in using so true once you achieve. F financial freedom that moment when you're like OK I feel comfortable I have to stress over Honda pay the bills. It feels so damned good. You have this renewed confidence you walk into work like OK you need me more than any Jew it's such an awesome feeling when you agree. Oh yeah and I think that that's the thing you know I Woertz found multiple jobs throughout my life. What are you know you clock in clock out you know I wanna go on vacation I got to submit it to my boss you know driving in rush hour traffic both ways you know. Either I didn't feel free. I felt kind of like trapped. Found in milk and being on the other item saying. Gosh I can work when I want. If I want you know you know I can I bet it is three if we wanna go travel the lives have been lost and you know it's they're the freedom that feeling is the main. You started off in your relationship 56000. Dollars in net is that right. At our end here are you at a point bring now where you could just hang it up and retire. So technically yes but here's the caveat ya I. We have yet cool that are bigger than their current lifestyle. So. Meaning that we would like to travel more we would like you put more money away cart it's college okay and so because because things like that we couldn't. But more important that we say hey we don't wanna travel you know internationally and we're in order its center themselves. We could say yeah we it comfortably live which will bring an end. But the reality is it's I think. You know that's why it's important to understand what those schools are you some people think it accurate fire early in the Buick and they realize oh my gosh I haven't. A lot of public ecology at or haven't thought about vacationing once a year or all the fact that you placed my car everything by the ten years you know the kind of thing. In it's even and more the mindset I see it as like my goal is to retire acts 55. And 41 now. I'm probably bone to retire at 55. But to have the mindset that OK at 55 I will have enough. Where I could retire. But you know and then I can pick and choose if I really want to enact just the mindset of hey I include retired if I want it to is. Your grade point is powerful yes. So for me I don't think I'll ever retire retire right I'd love to be productive as I love to help other people through business and so. Premier is more like you said that mindset. If if we didn't want to go someplace for six months ago bit of my buddy in Ecuador you know we Couric you know. May not be try to trap and so. Related it's less about like I don't wanna work it's more about I wanna be able to retire ordered scrub them bigger goal. OK so now if you're listening to this in your thinking and held there's no way I'm going to be able to get enough money to gather. Let's talk through some of these steps that you say in the book how it is possible for anybody to do best you have to decide. And taking control of your finances yet to commit to the plan after Donny and then you would succeed so what's are plan what are some steps we can follow. Yet the first thing is to have a strong why you know I mean that you could say here or retire early but why right I mean it could be. You know I I don't I don't wanna go another nine the I've been more like I'd rather eat. You know doing woodworking in my shopped it and you know selling trinkets you know that we market on the weekends and I think I am extremely right yeah he used to say that that's what I would rather be doing ancillary like. I don't like it there or he could eat you know they weren't. Go live in Australia for. You know or five years or whatever and people have kind of their own unique goals and so that why and if you're you're married you're doing it would just announced. Just really kind of seen what is that why then you know eat. It is courting that suddenly get like a picture Australia rightly I don't know of guilt that she didn't Australians should eating your eyes during your car. And flip it down when you get in the car on the way to work right undermine it felt like it this is why am yeah I'm doing yeah or. Or putting it on your fridge like maybe educated you know because we have a picture of your kid in. You're like yeah wanna provide their own particular put into college I didn't get that opportunity whatever. In and that's the first place start what stats solidified. Then you will it take steps necessary to kind of follow through with what are playing each year. And that I think is what Amy. Was missing right because she isn't married yet they haven't achieved that why yet to gather. And maybe that's why it's so confusing Purdue thank. Oh absolutely and and that takes time right that's closely you know had a lot of credit is Jill always and you kind of wonder it's eight. You know what but sit down and keep the process skill and did that why doesn't happen typically in one conversation. Begins to get flushed out over time I think. We can get beaten down and society is gonna play. Oh the normal it is you're tired 67 maybe not maybe become Omar Krieger and retired seven order you know and so. Yeah you carry out that they know let's rewind back in let's start with. He what are the reasons why we wanted to do it in and how do we create a plan used to gather. And it's amazing how pot when really it. So how do you create this planet sort. It's a Y eight and it kind of figured out that cost of living situation right I swear word you want to be and how much of the anacostia so let's just take an example out of what they cost you 48 grand a year to live. In. You know let's say Montana. I'll meet you say okay what that point if I wanted to go to real estate route. I needed it for real estate properties that let me a thousand dollars apiece so that's 4000 dollars a month. And you times that by twelve that's forty acre and here. So that oversimplification. But that's kind of let the companies say OK well we're going to you to get their first property I need to come up with say 20/20 5%. Put it down I'll have to make sure that you know you figure out management process what you have a problem and look at me do yourself. And then what you got that and if the second one. I'm kind of work your way torture forced up the you know that's one route. The other route would be you know the stock market. There's a rule or you could say you know you need 25 times you're in government has to make it simple. Let's say that you you know. 101000 dollars a year and GP 250000. Dollars you know obviously that's. 101000 is not a lot but you need idea then that's how you could elevate their calculations say I need that much in the stock market to be able to kind of keep you know where my lifestyle. I'm bored by current salary. And so epicenter out in the third round of the business. But that's my favorite that's so that I can personally because you create multiple streams of income and Kyra diversify. But I'm very much inside debt to do it in boot straps you know with cash and proving the concept to commit at three different routes to get there. And I know you talk a lot about you have to know your net worth. I don't think people spend enough time really crunching those numbers can you just help us figure out how to punch those numbers and why it is so important to be aware of that. Yet to outsource I want to have a disclaimer. Because we live in America overtly here and are eager New York is that. That if it can be depressing because yell at my life's been good for the first time. We had two properties in the height of the recession. You know in you know our properties were worth like 40% less than you know we owed on them and then plus we had 52 grand in debt so. The reality was we were starting severely in the negative. But had I been tracking that before the process. That might have never been the case I hardly say. It's just say okay. Really I gotta have a clear picture of where are you financially right now sort of listening that you've got a piece of paper at the top right accents. And at the bottom right liabilities. An app that they're gonna be like your house your 40 in case you're Carter agers say beings. You know could be your card potentially depending if you you know your debt to you wanna kind of bailed that out. The Spina into the bottom is gonna be credit card debt and liabilities credit card debt. Mortgage debt. Do loans car payment or a carpet are Carlin all those things got there so assets minus liabilities. Equals your network. And so the reality is is now what you heard of a starting point. This saying hey I got a negative network I want to positive or maybe you've got you know a 50000 dollar network is it OK I didn't hear or have 75000. So now he's circuiting differently because you're like OK I don't worry your mind or wanna be and so here's how to get there. Yeah that's the plan it's all about just take an extra second and plan. An inmate the most in your current income is what you say TO when it comes to having cash to retire early it's not about how much money you may. It's about what you do with that money you wrote it in your book and I've heard it from so many financially stable people. Yeah I you know I had this. Friend of the stamp I called my uncle aunt uncle bill and he had never recorded thirty grand a year and he died with almost a million dollar network. And that always stuck with me because it wasn't the money that he made it was what he didn't what keep you and so. He lived on significantly less than what you may think. Maybe you live decently and anyway not a nice restaurant on occasion. You know he had an apartment that was well. Currency burnished and it was a nice place it wasn't like he was living in the swamp. But everybody was she's very conscious of every decision that he made. May delight for people are looking to retire early that mindset is it he'd kind of say like eight it's not about stuff it's not about status at the now. I want this from nearby came. You know and so that means that you know like oh my life cycle we typically order water you know we can afford or beer or soda or whatever. But we thought that's who we choose you you know that opulent sacrifice to collect. Got suspended two dollars not soda that cost you know ten cents a ridiculous you know Bob in so. Really is everything okay. No matter where you are in the income equation you can make decisions today they'll help that income kind of stretched farther and and be able to work harder for you. So you know put it torture debt put it torture investments. An and trying to make that decision to days as you can retire or even sooner. Before you spend even a dollar. Think of the return on investment is it gonna help you move closer to your golf whatever that why what if you had an interesting instead about lottery tickets. It's not something that wealthy people do because they know technically they're not gonna win re. There's so many. Actually you know they're the actual numbers are a bit but you're almost more likely get struck by lightning than winning the lottery right or didn't even by chart to me there's all these screenings where. It is not it's not a reality. And that's why I like it even if you look at it you know it's right I mean that's like keynotes have huge building and all of these people and you know how they're they're being held so it went right when you're gambling the reality is that things are stacked against you. And so I'm really glad rather people do it you know. Take that money that they would spend the lottery and put it in an index fund right in and so state pay your bios is instead of putting this money let's just sailors. You know I remember 200 bucks a month towards the lottery you know and people it's fractures in lottery ticket and all that are. You put that in in not account into that 45 years as I. Let me give you assure away or read more yeah I'm more likely way to become a millionaire right you're going to do that pursuit that the lottery. Yes okay five months at a vial everybody's talking on the big jackpot in whatever you wanna throw a couple bucks okay. But don't make it a habit and the way you think you're gonna make you know. Financial freedom happen. It's just this is the seven figures I guess we're talking about money here we wanna get a little personal if you don't mind we knew growing up where there a lot of discussions at. It really works if he needed money orbit right I mean it's that was kind of the mentality when I was growing up. It and that's probably the 52000 dollar debt that you. Acquired overtime that was you and your wife combined how much was your personal that and. So that's good question is quiet little bit worn out OK so you're grown up with that mind credible appearance to Abiola as. Yeah I I need a reliable car and the finance hey I need to go to school and it yet before even though working while gold per school. Delegates to loan hey what do glove our honeymoon well could put on a credit card right. So does that mindset that I learned growing up that. If you wanna do something this is how it's done and you know right obviously learned that that was wrong way to think. So what was your I'm a moment and what was then will was an event that happens in your life really I have turn this around and now you're like the financial guru. So getting married great I mean once. You know what what it's just you and you know they. I didn't really think about it replicated is how I view things but then when I got married I realized oh my wife doesn't mean. A totally different or maybe we need to do is figure out a way. Did you staff together. As as a couple as a team. In Q we got a we're all we're doing or are so we decided okay let's learn from people that are successful money you know you know I read books from. You know Jim Cramer Robert Yitzhak he gave brand the rumble do all the guys that were personal finance experts. You know kind of further along and said hey what are they doing what they recommended and apply those principles Toro. OK awesome and now what lessons do you are you planning on carrying on to your kids and how do you. Talk about money with the family. So one of the biggest things that I think is important is understanding how to make morning. I think back you know anybody understand KIA either. Cut more like cut my expenses you know liking coupon or go and hit the tree and they are whatever. But then than making money in this bill that they think it will law. And that's I got a lot of the it is we'll bring it home in their release were prepared you know and and so really premier really wanting green elected at an early age kind of part of how to make money not being. Offering stand. I think you know I I've I have a court in space and so. Go buy one of those vending machines where you equivalent trailed accident until it's done is he's been as it names they've. It can let's go to Costco and trail mix. On the cost five bucks. OK buddy you're gonna take that you're gonna put it inside this machine. I can't in a couple of weeks we're gonna come back you're gonna grab the quarters out of that you're gonna help them and see if we made a proper or not right. If they're seventy millionaire they gave them to you might as odd as what you've had he come profited 250. OK if it's not you know to kind of going through that process and even a young age as a five year old or whatever he's he's pretty right now but. Always there are a lot of huge OK and you are pretty learn these lessons okay good. Yet but I don't think it through like. Teaching their and so he's not dependent on the government are and not some analyses he he knows that like if I need money I can figure it out in 2007 and it's crazy with things like task rabbit in Hoover and Dorgan has been pretty much anybody can make money in the hay. Just it's been a bit. Yeah there's really no excuse anymore. No they're been in but but some people don't they don't know about all those opportunities yeah that's kind of what I'm trying to use. It is enlightened and be got Roger Bannister saying hey look at all of these possibilities and find the one that really beats you back. Do you shared. Does financial responsibility in your house or is there one person that takes the lead. So all I definitely it it's definitely a lopsided towards me. Look at them more of like it's like a spreadsheet pentagon how we make decisions together don't like all all create a data it's been. We'll edit team will go over that together. I'm and so they really can it can vary from couple to couple that's what it looks like an hour. I can act and now that it is holiday season in usage you have two kids. Mine die. You get a party your house on the time total chaos would you get a little three year old and then. We are three important three and one almighty god so. So do you now see this as this might not be the right question for you because there's still so tiny you probably spoil the heck out of them during Christmas do you set budgets. We do so we actually have a gift accounts. And we put money every month. So that we wouldn't Christmas comes we have a 100% of the cast a paper Christmas so. And we're very much. We're kind of minimalist in the sense that we are about stuff it's about quality right so to. A couple of a couple of good guests verses but went a little guest you know so I'm really you know Michael and most trained to try to penetrate and cable they had you know you train gone and done so called the pulpit who that would allow them at least another year and next Christmas and maybe get a couple other little thing. You can retire early everything you need to achieve financial independence when you won it and yes you can retire early anyone can how can we get your box. So the best places and welcome Paula dot com slash retired. I would basically you're probably right outside of course they critical that rainy months and we're giving away the free. If people pre order the book order it in the first week it released so that. All dot com slash 300. Nobody can thank you so much and yet did you sort trimming and then it's next. Began the seven figures podcast I feel like bringing it closer to one another because then you're have you here in two. My relationship and I'm inviting my husband my danger in on the show and another problem. I think it's so important to learn from each other everybody is so hush hush when it comes to money and how they manage their money. But I think the only way to growl. Intuit chief financial freedom is if you can learn if he can take advice from other couples and see how they do anyone fits for you so. We're going to be open and honest and candid it. As we made our mistakes studios so hopefully you can learn from us next week and the seven figures podcast. And now it's time to. My favorite part of the podcast and bring in my dad so you need to see the financial picture from a different angle. It may be dance inspirational quotes does just that it's Father Knows Best my dad's two cents. Have a great weekend dominate your finances. Well you all heard the phrase don't just stand there do something. Well when it comes to finance. And spending money I think they'll just do something came here and think before you make their pitches. They can't afford. And you won't have that money to pay for later.