Feb. 4, 2026

Big Rocks and Small Dollars: Teaching Others What Really Matters with Money

Big Rocks and Small Dollars: Teaching Others What Really Matters with Money
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Season 2

What if your greatest financial legacy is the wisdom you share? Young financial planner & podcast host Skyler Fleming joins Bonita to help grandparents & parents teach the next generation how to thrive with money. Using simple object lessons, see what it means to pay yourself first, turn a 401(k) match into “free money,” & why you put the “big rocks” in your life first. You’ll walk away with practical conversations, stories, & hands-on ideas you can use with your kids & grandkids this week.

Ask Good Questions is broadcast live Wednesdays at 6PM ET on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Ask Good Questions is viewed on Talk 4 TV (www.talk4tv.com).

Ask Good Questions Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.

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WEBVTT

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The topics and opinions expressed in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W FOURCY Radio

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or it's employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Welcome to to Ask Good Questions Podcasts, broadcasting live every Wednesday,

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six pm Eastern Time on W four CY Radio at

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w four cy dot com. This week and every week,

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we will reach for a higher purpose in money and life,

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as well as a focus on health and wellment. Now,

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let's join your host, Anita bell Anderson, as together we

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start with Asking Good Questions.

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Welcome to the Ask Good Questions Podcast. I am your host,

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Bonita Bell Anderson, and I am looking forward to this

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episode because we're going to do something a little bit different.

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We're going to have some object lessons. We're going to

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try to teach something that people can take home and

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share with families. And so I have a young guest

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with me today and I'd like to invite him to

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the podcast stage right now. Hello. His name is Skyler

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Fleming and he's a certified he's a financial planner and

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a candidate for the CFP certification. How far are you

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on that? Are you getting close to taking the test

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for that?

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Yeah, I've taken in past the test. I have about

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six or eight months of experience hours left.

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So that's awesome. That's a great designation to have. So

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his mission is to help young adults like himself understand

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personal finance and his goal is to help everyone see

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that financial planning doesn't have to be complicated and only

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for the wealthy. So he has been hosting Money Talk

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for over four years now. That's great, Skyler, and two

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hundred plus episodes is great. He realized the opportunity that

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other young adults and young professionals have with their most

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valuable asset, which is time, because time is something you

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just don't get back. But most of the time people

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are bombarded by terrible advice and predatory salespeople and too

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much misinformation and too much doctor Google is just terrible.

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So this led him to launch financial planning for you

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adults and become a financial planner that he felt like,

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you know what, people would be able to relate. So

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he's living these strategies in real time with his own

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finances seen firsthand what works for young professionals and navigating

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student loans and four one ks and maybe the biggest thing,

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the temptation of lifestyle creep. So he speaks the language

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of his generation because he is part of it. His

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superpower is making financial planning feel less like homework and

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more like a conversation with a trusted friend who generally

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wants to see you win. Is there anything else you

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want to add to that?

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No, that was really cool and fantastic intro and everything

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I've been doing. But yeah, just excited to help people

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realize that this doesn't have to be a big complicated mess.

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And like as many of you know, I am, I'm

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still in Hawaii. I'm actually in Hawaii still until May.

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We're doing a service mission for our church here. And Skuyler,

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didn't you say you're in Twin Falls, Idaho.

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Yep, that's exactly where I am.

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Yeah, So I'm always amazed at the technol I'm out

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in the middle of the Pacific Ocean and this is great.

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So I'm gonna first we're going to like set the

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stage on this because we're going to talk about how

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to maybe ingrain in ourselves a little bit better some

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of these concepts, but then also how to share them

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with with your family. And so when you think about

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financial legacy, Skyler, you know, what do you hope your

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kids and grandkids? By the way, do you have any

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kids yet?

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Nope? Nope, My wife and I have no kids. So

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this is this is something we thought about before though,

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like how do we pass on how we we were

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taught and how do we pass it on? Yeah?

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Yeah, what are you thinking? What do you think about?

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How how do you hope your your kids or grandkids

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are going to remember about how you handled money?

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Yeah, our real big goal is making sure there's not

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a sense of entitlement, right, That's everyone's worry. As you

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start doing better with your fine nance, as you figure

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out how to handle your own money, and the hardest

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thing is saying here's money to help you. Like, I

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want to help you. I want to make sure you're

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living a good life, but I don't want to extend

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it so far that you feel like you don't have

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to still work. So for my wife and I, it's

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really been identifying some of those key moments that taught

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us about money, like paying our own way through school

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while it was a big expense, making it our own

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expense helped us realize that, hey, maybe it didn't need

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to be the most expensive college out there. It could

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be a more affordable state school or going to somewhere

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where I have a scholarship. So it's just planting in

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those little seeds is really what we're looking to do

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of say, hey, here's what helped us learn how to

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manage money. Let's keep that have it going.

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Yeah, and that's going to be so valuable it's killing

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kid you not. So what do you wish grandparents and

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parents talk more about with their kids.

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Yeah, I really wish that like my parents or my

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grandparents maybe talked about how they were handling money, especially

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when there was something that like as a kid, we

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noticed that maybe we needed to get a new furnace

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or something, maybe we needed to get a new tires.

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Just talking through like, hey, here's how this impacts us financially.

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And I've even had one person on my podcast talk

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about giving kids a piece of your budget right over

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the summer. They get to manage the snack's budget. Every

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time you guys out to the grocery store or to

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the gas station or whatever, right, they get one hundred

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dollars that last them the whole summer or whatever the

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number might be. That way, they have some ownership and saying, hey,

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if you spend it all right away, it's gone, right,

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the budget's gone. And a little bit so I just

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I wish that there'd have been a little bit more

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of an element of saying, hey, here's one tiny aspect

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of our financial life, and here's how it's being impacted

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by these different things, because it can be it's overwhelming

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to adults right to take the entire picture and actually

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understand it. So for a kid, just take those little

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small pieces. I think that would have been extremely helpful

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for me.

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Well, why do you think families avoid money conversations? What's

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the biggest thing that comes to mind.

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I think it's because parents are worried there doing it right,

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like they're already they're already struggling enough. Yeah, I mean, yeah,

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it's totally possible. Maybe you really aren't sure what you're doing.

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But I even think teaching some pieces of it, whether

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it's saying, hey, we don't always fill up our gas

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tank because right now we're living on a very tight

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budget and we don't have the money to just make

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sure everything's topped off all the time. So I think

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little conversations like that can plant seeds to say, oh, well,

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that's really interesting. Maybe there's there's times where you can't

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afford everything you want, and then sometimes you notice that

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your parents did fill the gas tank full, so maybe

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there was a bonus at work or something.

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Right.

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I think just having those little conversations can be super helpful,

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whether you're doing everything right or not right.

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Well, you know, because one of the motivations way back

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in the background for me doing my podcast is the

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mistakes I made in my life and how that impacted

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when I became a financial advisor twenty five years ago.

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And what do you think about grandparents using their life stories,

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you know, wins and mistakes too. Yeah, that you know what,

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I think that that can be valuable.

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Yeah, that's the perfect thing to tell people about. Right.

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That's why I host my podcast, money Talk. That's why

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I've had that going for over four years, is to

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take my experience, and the guests on the show is

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experience and say, hey, here's how this situation played out

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for us. Let's talk about both sides of the equation.

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What did we do right? What do we do wrong?

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Because being able to share those mistakes helps people avoid

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them in the future. Right, Like, if you're as a

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parent or a grandparent, you say, I took out way

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too many student loans, I highly recommend avoiding that because

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they were this big giant weight and stress coming out

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of college and getting my first job. Sharing those mistakes

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is going to just again plant those seeds. That's going

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to allow the future generations to avoid that same mistake,

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or at least maybe not make it in such a

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big way. They may just be able to stop before

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they get into a ton of credit card debt because

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you told them that you spent twenty years trying to

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get out of credit card debt because you were never

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had a system around it or whatever, So they can

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stop at one thousand dollars instead of twenty five thousand

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dollars of credit card debt.

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Well, when I started my podcast, the very first question

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I was asked was what do you want to call it?

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And I've known for a long time. What I would

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if I ever did a podcast, what I would call

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it would be asked good questions, because all of the

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financial mistakes that I made in my life were because

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I did not ask good questions or I didn't think

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about what's the worst thing that could happen. So yeah,

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you know, it's just something that I think this can

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be beneficial for a lot of people. So we're going

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to do something that I hope can land a little

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bit differently for people. We're going to use object lesson.

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We're going to like show you some ideas, and we're

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going to unpack what it means to number one, pay

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yourself for We're going to go through each one of

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these one by one. We're going to talk about how

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to turn a four to one K match into free

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money and how to think about that, and we're going

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to talk about why putting the big rocks in your

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life first changes everything. People may have heard about the

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big rocks story before, but you know, if there's some

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out there you know it's not it doesn't hurt to

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hear it again. So my goal today is that people

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will walk away with practical conversations and stories and hands

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on ideas that they can use with their kids, grandkids, whatever,

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and you know, do it this week. So so the

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way we'll do this is, I'm going to ask you

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a couple of questions. We'll kind of set it up,

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and then we'll do the object lesson. We'll show the

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little props and stuff. So number one is pay yourself first.

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How you explain that, Skyler to a teenager or a

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young adult who's just getting their first job or their allowance.

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Yeah, I think the way you explain it is going

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to be with this object lesson. I think that's such

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a good way that it sticks. But you just teach

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them to say, hey, all of this money isn't necessarily

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exactly what you're going to have to spend. You're going

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to have responsibilities, you're going to have requirements, things that

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you have to pay, and your money will be so

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much easier to manage if you commit yourself to making

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sure your bills are taken care of and making sure

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your savings or paying yourself first is taking care of.

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And then once you can whittle that down, you put

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yourself in such an easier spot to be able to

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spend money. Because that's what we want to do. Right,

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we want to enjoy life. We want to be able

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to go hang out with friends. I think that would

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be a huge one for teenagers, especially as they have

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money now to pay for movie tickets, They have money

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now to go out to eat. So saying you can

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spend that money however you'd like, as long as you

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make sure the other things are taken care of first.

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It gives you a more realistic boundary to keep yourself

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within instead of that lifestyle creep like you mentioned in

227
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the very introduction. If you're using all of your money

228
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to enjoy life, right, it's just going to keep ballooning

229
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and ballooning. But you have to make sure you take

230
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care of those requirements and responsibilities very first.

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I'll never forget the day I don't know, it's been

232
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probably ten years ago and somebody that's about sixty years

233
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old comes into my office and they look like a

234
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deer in the headlights because they've never really saved. And

235
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it's like and by then it's like what we talked about.

236
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The very first thing we mentioned was time, and that's

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the thing that you can't get back. And so if

238
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I can just pound this in to use the if

239
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you're young and you have the time and you can

240
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make this work. So what would you say would be

241
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some age appropriate percentages or dollar amounts that a young

242
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person might set aside for savings versus spending.

243
00:13:13.360 --> 00:13:16.600
Yeah, the fifty to thirty twenty budget is a very

244
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popular one where you have, oh man, I'm trying to

245
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pull from my memory here, just blanked on what it means.

246
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But like fifty percent goes to need, I believe, yes, there,

247
00:13:27.480 --> 00:13:30.559
thank you, yes, and then thirty percent to want in

248
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twenty percent savings. So twenty percent is such a great

249
00:13:33.799 --> 00:13:35.840
place to start at because if you can maintain a

250
00:13:35.919 --> 00:13:40.600
twenty percent savings rate your entire life, your golden You're good. Yeah,

251
00:13:40.639 --> 00:13:42.080
Like that's all you need to do. So if you

252
00:13:42.120 --> 00:13:45.759
make sure that that twenty percent is always there, you're

253
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going to be just fine in life. And you can

254
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make sure the rest is set aside for your your

255
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needs and everything like that, and then that wants spend

256
00:13:52.440 --> 00:13:56.840
it however you want. So that that parameter and just

257
00:13:56.919 --> 00:13:59.639
that baseline rule of thumb budget out there is a

258
00:13:59.639 --> 00:14:01.480
really great place to get started because the numbers are

259
00:14:01.559 --> 00:14:04.360
nice and round and even it's easy to understand, maybe

260
00:14:04.399 --> 00:14:06.519
not always so easy to remember. Off the top of

261
00:14:06.559 --> 00:14:09.879
your head. But it is easy to just allocate it

262
00:14:09.919 --> 00:14:12.159
evenly and just let it take care of itself.

263
00:14:12.759 --> 00:14:18.279
Right, Well, how would how would you encourage a grandparent

264
00:14:18.399 --> 00:14:22.000
or a parent to encourage saving without making kids feel like, oh,

265
00:14:22.039 --> 00:14:23.519
you never let me have any fun?

266
00:14:24.639 --> 00:14:26.399
Yeah, I think it would be. It would be letting

267
00:14:26.440 --> 00:14:28.720
them have fun with that money that they have. Right,

268
00:14:28.840 --> 00:14:32.159
And that's where budgeting becomes so difficult for people is

269
00:14:32.159 --> 00:14:35.480
they feel like they're restricting themselves from all sides. But

270
00:14:35.559 --> 00:14:37.399
if you can make sure that things are taking care

271
00:14:37.399 --> 00:14:40.159
of that need to be taken care of, do whatever

272
00:14:40.200 --> 00:14:42.840
you want to with the remaining money, it does not matter.

273
00:14:42.879 --> 00:14:46.120
Like as a financial planner, if you're taking that want

274
00:14:46.440 --> 00:14:50.440
bucket or that envelope or whatever you're using and spending

275
00:14:50.480 --> 00:14:52.519
it on whatever you want, go for it. Like if

276
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you have that twenty percent savings rate and you're fine,

277
00:14:55.200 --> 00:14:57.919
who cares? Like, let them have fun with that money

278
00:14:58.279 --> 00:15:00.799
that is left to have fun and say, go have

279
00:15:00.840 --> 00:15:02.679
fun with your friends, go to the water park, go

280
00:15:02.720 --> 00:15:05.279
to the movies, whatever it might be. Let them actually

281
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do it a couple of times. Yeah, I have money

282
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to have fun.

283
00:15:09.200 --> 00:15:12.639
Right on the other end of the scale. This is

284
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something I've set up years ago. I've been I've also

285
00:15:14.720 --> 00:15:18.000
been a scuba diver for many, many years, and so

286
00:15:18.120 --> 00:15:21.399
I started a savings account that was just for scuba diving.

287
00:15:21.759 --> 00:15:25.679
So when a trip came up, then that's where I

288
00:15:25.720 --> 00:15:27.320
you know, I finally went, wow, this is kind of

289
00:15:27.360 --> 00:15:30.320
an expensive trip, but I had the savings account. So

290
00:15:30.399 --> 00:15:32.639
I mean that's the whole principle, is that you have

291
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you have something set aside that you can use for

292
00:15:36.159 --> 00:15:37.480
whatever it is that you want to do.

293
00:15:38.360 --> 00:15:40.080
Yeah, that's exactly what my wife and I did to

294
00:15:40.120 --> 00:15:42.039
go to Hawaii. Actually is we just had a savings

295
00:15:42.120 --> 00:15:45.399
account that was there for years and that trip was expensive,

296
00:15:45.480 --> 00:15:47.159
like and we did it on purpose because we wanted

297
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to enjoy every aspect of it. It was that let's

298
00:15:49.799 --> 00:15:51.759
have fun with the money that's there to have fun

299
00:15:51.840 --> 00:15:54.720
with type of trip. So yeah, as you're just setting

300
00:15:54.720 --> 00:15:56.840
money aside, actually use it for what you want to

301
00:15:56.919 --> 00:15:57.240
use it for.

302
00:15:57.480 --> 00:15:57.879
Yeah.

303
00:15:57.960 --> 00:16:01.679
Yeah, So final thing before we do the object lesson,

304
00:16:02.879 --> 00:16:05.919
what do you think are some common misconceptions young adults

305
00:16:05.960 --> 00:16:07.159
have about saving.

306
00:16:08.279 --> 00:16:11.240
I think that it's deprivation, like that it's a deprivation

307
00:16:11.519 --> 00:16:14.759
or a restriction, right, I think people think that saving

308
00:16:14.840 --> 00:16:17.679
money is the end and you're not going to be

309
00:16:17.720 --> 00:16:19.559
able to do anything else with it. But you're saving

310
00:16:19.600 --> 00:16:21.840
money for some goal, whether if you're if you're not

311
00:16:21.879 --> 00:16:24.600
saving money for a goal, then you need to figure

312
00:16:24.600 --> 00:16:26.200
out what that goal is, because that's where it can

313
00:16:26.200 --> 00:16:28.399
be really challenging. If you're just saving money for the

314
00:16:28.440 --> 00:16:31.039
sake of saving money, then you're going to feel like

315
00:16:31.039 --> 00:16:33.320
you're not getting anywhere. You're going to feel like you're

316
00:16:33.399 --> 00:16:36.159
just depriving yourself of enjoying the money. But if you're

317
00:16:36.200 --> 00:16:39.320
saving money for getting a pet, or saving money to

318
00:16:39.360 --> 00:16:42.200
get a car, or saving money for retirement, right, there's

319
00:16:42.240 --> 00:16:44.759
going to be some element of yeah, I want to

320
00:16:44.879 --> 00:16:46.879
enjoy my retirement. I want to enjoy that new car

321
00:16:46.919 --> 00:16:49.080
I'm going to go buy. And it gives you that

322
00:16:49.320 --> 00:16:51.440
just enough to hang on to to keep saving and

323
00:16:51.519 --> 00:16:53.679
let it just sit there and do its thing.

324
00:16:54.440 --> 00:16:57.399
Right. So, all right, so we're going to do this

325
00:16:59.200 --> 00:17:05.079
object lesson with some jars. So we'll maximize Skyler's screen

326
00:17:05.240 --> 00:17:07.640
so that we can do that. Now, so let's go ahead,

327
00:17:09.359 --> 00:17:11.039
paying yourself for Skyler.

328
00:17:11.920 --> 00:17:15.279
Yes, so I brought these jars as a size comparison,

329
00:17:15.359 --> 00:17:17.240
right for the fifty to thirty twenty. That's what I

330
00:17:17.279 --> 00:17:19.960
thought of when I saw these different sized jars. So

331
00:17:20.200 --> 00:17:22.400
getting some sort of envelope and just writing fifty to

332
00:17:22.440 --> 00:17:24.279
thirty twenty can be a great way to do it

333
00:17:24.319 --> 00:17:26.839
as well. But if you maybe have the size some

334
00:17:26.920 --> 00:17:28.960
size objects to say, yeah, look, how this one's a

335
00:17:28.960 --> 00:17:32.000
bigger portion of your income as you fill it up

336
00:17:32.079 --> 00:17:34.559
or you put the money in it from their paycheck

337
00:17:34.599 --> 00:17:37.279
and you divide it up evenly. I think using sized

338
00:17:37.319 --> 00:17:40.000
objects could be helpful here because you're going to be

339
00:17:40.000 --> 00:17:42.119
able to say, yeah, this is a bigger portion your

340
00:17:42.960 --> 00:17:46.039
your needs are going to be the majority the responsibility

341
00:17:46.079 --> 00:17:48.680
taking care of groceries, whatever might fall into this jar,

342
00:17:49.119 --> 00:17:52.200
it's going to be the big one. And then you

343
00:17:52.240 --> 00:17:54.839
can have your your savings at twenty percent and your

344
00:17:54.880 --> 00:17:57.400
wants that your savings at twenty percent and your wants

345
00:17:57.400 --> 00:17:59.799
at thirty percent. You can save this money just goes

346
00:17:59.839 --> 00:18:02.480
in the cupboard and it stays away and a high

347
00:18:02.519 --> 00:18:05.119
held savings account, right or whatever it may be. And

348
00:18:05.160 --> 00:18:06.799
then you say this one. You can do whatever you

349
00:18:06.839 --> 00:18:08.839
want with carry this one in your pocket. If it's

350
00:18:08.839 --> 00:18:10.720
an it'll probably be better if it's an envelope, right,

351
00:18:10.720 --> 00:18:12.039
because you don't want to carry a giant jar or

352
00:18:12.039 --> 00:18:15.480
money around, but an envelope saying this one carry with

353
00:18:15.559 --> 00:18:17.799
you at all times and spend out of this one

354
00:18:17.839 --> 00:18:20.720
once it's empty. That's that's it. But you can spend

355
00:18:20.720 --> 00:18:23.559
this one on whatever you want, knowing that this one

356
00:18:23.599 --> 00:18:26.000
is sitting in the background, ready to take care of

357
00:18:26.000 --> 00:18:29.519
your bills as they show up, your automatic bills, your electricity,

358
00:18:29.559 --> 00:18:31.720
things like that, and then you know this one's hidden

359
00:18:31.759 --> 00:18:34.640
away earning a high rate of interest whatever it may

360
00:18:34.680 --> 00:18:37.640
be for your future, whether it's invested for your retirement

361
00:18:37.839 --> 00:18:40.880
or earning a high held savings account type rate for

362
00:18:41.920 --> 00:18:43.920
whatever it may be, that vacation you want to take car,

363
00:18:43.960 --> 00:18:46.079
all those things we've mentioned so far. But I think

364
00:18:46.160 --> 00:18:48.839
using sized objects to get started could be helpful because

365
00:18:48.839 --> 00:18:50.960
then you can visualize it a little bit more. But

366
00:18:51.039 --> 00:18:53.920
using envelopes is a great way to divvy up the

367
00:18:53.960 --> 00:18:56.240
money and say, carry this one with you. It is

368
00:18:56.559 --> 00:18:58.319
whatever you want to spend it on type of money.

369
00:18:59.640 --> 00:19:03.720
So if if someone had done this with from their

370
00:19:03.880 --> 00:19:09.640
very first paycheck on, how might a financial life look

371
00:19:09.759 --> 00:19:11.440
like like twenty years down the road.

372
00:19:12.400 --> 00:19:15.200
Yeah, it's going to be this little one that your

373
00:19:15.200 --> 00:19:16.960
savings is going to end up being your big one.

374
00:19:17.079 --> 00:19:18.680
That's what's going to be fun about it is it's

375
00:19:18.720 --> 00:19:21.279
just going to sit there and grow. And I'm excited

376
00:19:21.319 --> 00:19:22.799
to talk about the four oh one k here in

377
00:19:22.799 --> 00:19:25.039
a little bit because I ran some good numbers about

378
00:19:25.240 --> 00:19:27.359
how compound interest works. And I think that's going to

379
00:19:27.359 --> 00:19:30.359
be such a great thing to teach your children or

380
00:19:30.359 --> 00:19:33.960
grandchildren about. Is just exactly what this tiny little jar

381
00:19:34.000 --> 00:19:36.400
that doesn't look that big, that's just hidden away, can

382
00:19:36.440 --> 00:19:38.920
actually do. So that's going to be the big thing,

383
00:19:39.000 --> 00:19:40.839
is that compound interest on the money that you just

384
00:19:40.960 --> 00:19:43.400
keep regularly saving. It's going to be massive.

385
00:19:44.680 --> 00:19:48.440
So if you're a grandparent, you could ask your grandkids.

386
00:19:48.559 --> 00:19:49.839
Let me see if you can come up with a

387
00:19:49.920 --> 00:19:54.440
question too, Skyler, Like you could ask your child or

388
00:19:54.440 --> 00:19:58.240
your grandchild, if you earn fifty dollars this week, how

389
00:19:58.319 --> 00:20:00.519
much would you want future you to get or how

390
00:20:00.599 --> 00:20:04.559
much would you put in that savings that twenty percent

391
00:20:04.599 --> 00:20:07.119
savings account? And so you could get them thinking about

392
00:20:07.119 --> 00:20:11.319
what does it really mean? Right? How would you say

393
00:20:11.319 --> 00:20:12.720
that to them, Skyler?

394
00:20:12.839 --> 00:20:16.039
Yeah, I would. I would probably start teaching something around

395
00:20:16.200 --> 00:20:18.920
the rule of seventy two, right, and how money doubles

396
00:20:19.440 --> 00:20:21.680
every so many years. Right. You don't need to get

397
00:20:21.680 --> 00:20:24.000
into the specifics of interest rates and everything like that,

398
00:20:24.000 --> 00:20:26.359
because that might make it a little too foggy to

399
00:20:26.480 --> 00:20:29.240
start teaching maybe a younger child or a younger grandchild.

400
00:20:29.640 --> 00:20:32.079
But you could use the math of saying, hey, your money,

401
00:20:32.079 --> 00:20:34.720
if it's in when it's invested, can double every ten years.

402
00:20:34.759 --> 00:20:36.880
So if you take that twenty percent of fifty of

403
00:20:37.279 --> 00:20:40.440
ten dollars, say the kid is ten right now, If

404
00:20:40.480 --> 00:20:42.440
you take that ten dollars when you're twenty, it'll be

405
00:20:42.519 --> 00:20:44.880
twenty dollars, And you just teach them about how that

406
00:20:44.920 --> 00:20:47.759
can snowball, because when they're thirty it'll be forty dollars,

407
00:20:48.079 --> 00:20:50.880
and when they're forty it'll be eighty dollars and one

408
00:20:50.920 --> 00:20:52.519
hundred and sixty and so on, and then you can

409
00:20:52.559 --> 00:20:55.599
get their mind wrapped around, Hey, this money's just going

410
00:20:55.640 --> 00:20:58.720
to grow on its own as you set it aside

411
00:20:58.759 --> 00:21:01.960
and put the money away regularly, and just think, every

412
00:21:01.960 --> 00:21:04.599
paycheck you do ten dollars, all of those different ten

413
00:21:04.640 --> 00:21:06.960
dollars are all doubling, right, So then you start to

414
00:21:07.000 --> 00:21:10.160
think of it's not just ten becoming twenty, it's now

415
00:21:10.200 --> 00:21:13.799
after a year, it's what two hundred and sixty becoming

416
00:21:15.000 --> 00:21:18.119
five hundred and something, right, it's hard to do public math,

417
00:21:18.240 --> 00:21:22.359
but yeah, it's just all continuing to grow.

418
00:21:23.400 --> 00:21:26.839
Then there, I think there's a tie in for especially

419
00:21:26.920 --> 00:21:29.799
for young adults who are starting to you know, maybe

420
00:21:29.880 --> 00:21:33.039
they've met that special someone, maybe they're buying a house.

421
00:21:34.039 --> 00:21:38.240
Automatic transfers to savings could eventually mean a down payment

422
00:21:38.279 --> 00:21:42.400
on a house. Possibly it could mean for one K contributions,

423
00:21:42.440 --> 00:21:46.200
it could mean a roth Ira contribution. But I'm just

424
00:21:46.240 --> 00:21:51.319
thinking having that might be just a golden opportunity to

425
00:21:51.319 --> 00:21:53.119
be able to do something that you really want to

426
00:21:53.160 --> 00:21:54.920
do as you're getting started in life.

427
00:21:55.599 --> 00:21:57.759
Yeah, that's where the magic comes is that you've been

428
00:21:57.839 --> 00:22:02.319
regularly saving. And there's this amazing point of financial independence

429
00:22:02.319 --> 00:22:05.440
that I love to teach about called coast financial independence,

430
00:22:05.440 --> 00:22:07.240
and it's where you can get your savings up to

431
00:22:07.279 --> 00:22:10.119
a point where it'll grow to what you need by

432
00:22:10.160 --> 00:22:12.359
time you retire. And my wife and I are getting

433
00:22:12.400 --> 00:22:14.640
dangerously close to it because what it would allow us

434
00:22:14.640 --> 00:22:18.200
to do is have just unlimited opportunities because we technically

435
00:22:18.240 --> 00:22:21.200
no longer have to save for retirement, so we can

436
00:22:21.279 --> 00:22:24.480
maybe work part time, we can start a family we're

437
00:22:24.519 --> 00:22:27.079
looking to adopt, so we could adopt more kids and

438
00:22:27.119 --> 00:22:29.400
be home with them more if we know that, maybe

439
00:22:29.400 --> 00:22:30.960
we don't need to make as much money. Right, And

440
00:22:31.000 --> 00:22:34.799
I'm just speaking here of the endless opportunity that young

441
00:22:34.839 --> 00:22:38.160
adults or your grandchildren are going to have if they

442
00:22:38.200 --> 00:22:40.680
can get started early. Like I was working with one

443
00:22:40.680 --> 00:22:43.680
client and talking about their three year old and they

444
00:22:43.720 --> 00:22:45.599
have some other kids, right, I was running the compound

445
00:22:45.640 --> 00:22:47.880
interest to saying, hey, what if you put away one

446
00:22:47.920 --> 00:22:50.359
hundred or two hundred dollars away for your kids? And

447
00:22:50.400 --> 00:22:52.640
I was comparing them their oldest and where they would

448
00:22:52.640 --> 00:22:55.279
be after so many years, and then showed them that

449
00:22:55.359 --> 00:22:58.039
gap to their youngest, and it was like millions of dollars.

450
00:22:58.039 --> 00:23:01.039
More So, the earlier you start, you just give yourself

451
00:23:01.440 --> 00:23:04.920
so much opportunity down the road. It's really unreal once

452
00:23:04.920 --> 00:23:07.279
you start to realize some of the opportunity.

453
00:23:08.480 --> 00:23:12.160
Okay, I think we're done with object number one. That's

454
00:23:12.200 --> 00:23:19.440
a little for one. Yeah, And another thing that I

455
00:23:19.519 --> 00:23:25.720
might say is that when I'm thinking about all the

456
00:23:25.720 --> 00:23:28.200
different mistakes and the different things that when haywire in

457
00:23:28.200 --> 00:23:33.359
my life, and I just kept plunking away, right, and

458
00:23:33.440 --> 00:23:36.599
because this can all be wonderful, but there's going to

459
00:23:36.640 --> 00:23:38.240
be things that are going to come along that are

460
00:23:38.240 --> 00:23:41.160
going to sidetrack you. And so I'm just here to

461
00:23:41.200 --> 00:23:44.240
say I had a lot of crazy things happen along

462
00:23:44.279 --> 00:23:48.200
the way to this point, but here I am able

463
00:23:48.240 --> 00:23:51.559
to serve a mission for my church and be in

464
00:23:51.599 --> 00:23:54.079
Hawaii for a year and do all this great service.

465
00:23:54.279 --> 00:23:56.640
And it's been great, you know, being able to do that.

466
00:23:57.440 --> 00:24:03.480
But it's that sort of thing, Skyler, that is, if

467
00:24:03.480 --> 00:24:07.119
you if you just pay attention to this, it's gonna

468
00:24:07.440 --> 00:24:11.200
it's it's you're gonna be surprised how well it'll work out, right, Yeah.

469
00:24:11.039 --> 00:24:13.359
It'll change your life for the infinitely better.

470
00:24:13.519 --> 00:24:18.039
Like it's crazy, right, So okay, we're gonna go on. Now.

471
00:24:18.039 --> 00:24:20.319
I know that Skyler is all excited about talking about

472
00:24:20.400 --> 00:24:22.359
four one ks. Nobody would ever think that.

473
00:24:23.119 --> 00:24:27.440
But and taxes, let's talk about taxes too. Oh yeah, So.

474
00:24:30.119 --> 00:24:33.440
Okay, when you talk with a young adult about their

475
00:24:33.480 --> 00:24:37.039
first job, what's the very first thing you want them

476
00:24:37.079 --> 00:24:38.920
to understand about a four to one K.

477
00:24:39.960 --> 00:24:42.759
Yeah, it's it's such a great tool. And this is

478
00:24:42.759 --> 00:24:45.119
one of the big challenges I've had to overcome, as

479
00:24:45.160 --> 00:24:48.000
like the financial planner for young adults is there's all

480
00:24:48.039 --> 00:24:51.759
this misinformation out there on TikTok and you name it

481
00:24:51.799 --> 00:24:53.319
about how the four to one k' is a scam

482
00:24:53.359 --> 00:24:55.759
or whatever, right, and how they're hiding your money. The

483
00:24:55.759 --> 00:24:58.200
didn't just lies. They get made up about this account.

484
00:24:58.559 --> 00:25:00.240
This is such a great vehicle, and we're we're going

485
00:25:00.279 --> 00:25:02.839
to talk about the company match. But that is the

486
00:25:02.880 --> 00:25:06.000
superpower of saving for retirement because if you're doing twenty

487
00:25:06.039 --> 00:25:08.799
percent and you're saving that regularly and then your employer

488
00:25:08.799 --> 00:25:11.519
adds on another three or six percent, that just gets

489
00:25:11.519 --> 00:25:13.720
you to your goal so much faster. And if you're

490
00:25:13.720 --> 00:25:16.400
starting earlier and earlier, that number is just going to

491
00:25:16.599 --> 00:25:19.599
balloon and continue to grow. But the most important thing

492
00:25:19.640 --> 00:25:21.759
that I think people need to understand about their four

493
00:25:21.839 --> 00:25:24.480
one k's at their first job is that you it's

494
00:25:24.559 --> 00:25:28.279
it's a must, it's a necessary thing to do, especially

495
00:25:28.319 --> 00:25:30.039
if it's your first job out of college, you're twenty

496
00:25:30.119 --> 00:25:33.880
twenty two, whatever age, your early twenties. That's a gold

497
00:25:33.960 --> 00:25:36.759
mine for your future. And that's really that's the key thing.

498
00:25:37.279 --> 00:25:42.720
Yeah, how would you explain that? I mean, I'm betting

499
00:25:42.799 --> 00:25:45.519
that somebody could say, well, I've heard about how about

500
00:25:45.519 --> 00:25:48.319
this is free money? I don't get that. How would

501
00:25:48.319 --> 00:25:49.079
you explain that?

502
00:25:50.200 --> 00:25:52.160
Yeah, there's a couple different aspects of it that are

503
00:25:52.160 --> 00:25:55.759
free money. The employer match is considered free money because

504
00:25:55.759 --> 00:25:57.240
it's money that your employer is going to give you

505
00:25:57.319 --> 00:26:00.359
for doing nothing else other than putting my money into

506
00:26:00.359 --> 00:26:02.319
the account. Right, it's part of your salary, is what

507
00:26:02.359 --> 00:26:05.200
you really need to consider. Your employer is looking at

508
00:26:05.200 --> 00:26:07.279
people who aren't participating in their four O one k's

509
00:26:07.400 --> 00:26:10.119
is money in the back into their pocket. Right, you

510
00:26:10.160 --> 00:26:11.960
need to make sure to take advantage of it because

511
00:26:12.559 --> 00:26:15.319
it's it's part. It's part of your pay compensation. You

512
00:26:15.359 --> 00:26:17.559
need to make sure you're taking advantage of it. And

513
00:26:17.599 --> 00:26:19.359
the great way that I've seen it laid out there

514
00:26:19.400 --> 00:26:21.599
before is say, say your employer went to hand you

515
00:26:21.640 --> 00:26:23.920
one hundred dollars bill, and what are you going to do?

516
00:26:24.000 --> 00:26:25.799
Just turn it down and walk away from it. That's

517
00:26:25.839 --> 00:26:28.440
what you're doing if you're leaving the employer match on

518
00:26:28.440 --> 00:26:30.720
the table and not taking advantage of it. Is that

519
00:26:30.759 --> 00:26:32.480
it's free money. The other way it's free money is

520
00:26:32.519 --> 00:26:35.720
just from those like seemingly phantom stock market gains right

521
00:26:35.720 --> 00:26:39.000
as it's invested that money is just growing and growing

522
00:26:39.000 --> 00:26:40.799
and growing. My four oh one K when I left

523
00:26:40.799 --> 00:26:43.720
my last job, half of the money in the account

524
00:26:44.119 --> 00:26:47.519
was growth from the stock market and employer match. So

525
00:26:47.599 --> 00:26:50.039
you're telling me my money. Essentially my money had doubled,

526
00:26:50.319 --> 00:26:52.359
but half of that wasn't even my money. Like, that's

527
00:26:52.400 --> 00:26:54.799
so cool. That's what's so exciting about these accounts.

528
00:26:55.160 --> 00:26:57.559
Basically money given to you just like here you go,

529
00:26:58.759 --> 00:26:59.240
and if.

530
00:26:59.119 --> 00:27:01.079
You don't understand, it's parractically magic.

531
00:27:02.039 --> 00:27:06.720
Yeah. So could you walk us through a simple compound

532
00:27:06.839 --> 00:27:12.240
interest example, right that grandparents could share you know, something

533
00:27:12.279 --> 00:27:15.400
about like what happens if someone starts contributing in their

534
00:27:15.519 --> 00:27:19.519
twenties versus saying, oh, I'll do it later. Because I've

535
00:27:19.519 --> 00:27:21.519
had people do that, say oh I'll do it later,

536
00:27:21.599 --> 00:27:24.759
and they don't start until their forties. What would you do?

537
00:27:24.839 --> 00:27:29.440
Yeah, this one's fun to walk through. So the common,

538
00:27:29.920 --> 00:27:33.119
very common like objection here is that I'll make more

539
00:27:33.160 --> 00:27:35.319
money when I'm forty and be able to catch up. Right,

540
00:27:35.359 --> 00:27:38.680
That's what everyone says, is that my salary will be higher,

541
00:27:38.680 --> 00:27:40.920
I'll have a higher income. I guess what, You're also

542
00:27:40.920 --> 00:27:43.200
going to have higher expenses in every other aspect of

543
00:27:43.240 --> 00:27:46.039
your life. So let's walk through the twenties to forties.

544
00:27:46.039 --> 00:27:47.960
So if you're a twenty year old and I'm going

545
00:27:48.039 --> 00:27:50.720
to use until age sixty as retirement. So let's say

546
00:27:50.720 --> 00:27:52.480
you're a twenty year old who has forty years to

547
00:27:52.519 --> 00:27:56.160
grow that amount of money. Let's see, Yeah, that amount

548
00:27:56.160 --> 00:27:58.799
of money, it was one thousand dollars a month and

549
00:27:59.079 --> 00:28:01.000
or sorry, one hundred dollars a month. One hundred dollars

550
00:28:01.039 --> 00:28:03.119
a month at age twenty, and you have forty years

551
00:28:03.160 --> 00:28:05.559
for it to grow. Came out to about five hundred

552
00:28:05.559 --> 00:28:08.640
and thirty thousand dollars. Okay, But now, as someone who's

553
00:28:08.680 --> 00:28:11.200
aged forty, you only have twenty years. Right, you're saying, oh,

554
00:28:11.240 --> 00:28:13.559
I'll have more money if you did eight hundred dollars

555
00:28:13.599 --> 00:28:16.319
a month, So eight times the amount of money. You

556
00:28:16.559 --> 00:28:18.960
barely come out on top with five hundred and forty

557
00:28:19.000 --> 00:28:21.400
nine thousand dollars, so you barely have more money.

558
00:28:21.559 --> 00:28:24.440
Might not be that might not be even reasonable, right.

559
00:28:24.319 --> 00:28:27.039
Exactly because you have so many other expenses that are

560
00:28:27.039 --> 00:28:30.160
also contributing, and you're barely coming out on top. Now

561
00:28:30.160 --> 00:28:32.880
you're not coming out eight times ahead. So the difference

562
00:28:32.920 --> 00:28:36.200
here is one hundred and ninety two thousand dollars worth

563
00:28:36.240 --> 00:28:39.000
of contributions, So think about where that money could have

564
00:28:39.039 --> 00:28:42.920
gone elsewhere. So you, let's see, you have to contribute

565
00:28:42.920 --> 00:28:44.880
one hundred ninety two thousand dollars for the forty year

566
00:28:44.880 --> 00:28:47.559
old and forty eight thousand dollars for the twenty year old.

567
00:28:47.720 --> 00:28:49.799
So I was a little on the wrong number there,

568
00:28:49.799 --> 00:28:52.079
But it's one hundred and forty four thousand dollars more

569
00:28:52.440 --> 00:28:55.640
of your own money just to barely come out on top.

570
00:28:55.880 --> 00:28:58.559
So let's say you flip the script. And let's say

571
00:28:58.759 --> 00:29:00.279
if you try to flip the script and say you

572
00:29:00.279 --> 00:29:03.640
can save more for retirement when you have more money, instead,

573
00:29:03.640 --> 00:29:06.519
you need to say I can enjoy life more when

574
00:29:06.680 --> 00:29:08.559
later down the road when I make more money, because

575
00:29:08.599 --> 00:29:12.079
you know, like making that little sacrifice now of the

576
00:29:12.079 --> 00:29:14.559
one hundred dollars a month is going to come out

577
00:29:14.559 --> 00:29:17.079
on top. You can take that other seven hundred dollars

578
00:29:17.119 --> 00:29:19.640
a month when you reach age forty and do whatever

579
00:29:19.680 --> 00:29:21.319
you want with it, right, Like that's kind of the

580
00:29:21.359 --> 00:29:24.480
saying of yeah, like you you have seven hundred more

581
00:29:24.519 --> 00:29:26.400
dollars a month that you could go on vacation with

582
00:29:26.880 --> 00:29:30.200
and who knows what. But if you had to put

583
00:29:30.240 --> 00:29:32.480
it into retirement. It's not going to make that much

584
00:29:32.519 --> 00:29:34.279
of a difference. It would sure make a heck of

585
00:29:34.319 --> 00:29:36.759
a lot of a bigger difference on buying the car

586
00:29:36.799 --> 00:29:39.240
you want, getting the nicer house you want. Right, So

587
00:29:39.440 --> 00:29:41.880
it's so key to start early because you're going to

588
00:29:41.880 --> 00:29:43.039
come way out on top.

589
00:29:44.200 --> 00:29:48.240
So I'm going to play devil's advocate here Skyler. So

590
00:29:48.440 --> 00:29:52.079
for the young person who says I can't can't afford it,

591
00:29:53.160 --> 00:29:55.319
I can't afford a contribute to a four to one K,

592
00:29:55.720 --> 00:30:01.039
what are some practical steps trade off? What do you

593
00:30:01.079 --> 00:30:02.200
think to make it doable?

594
00:30:02.880 --> 00:30:05.519
Yeah, the easier answer, easy answer here that you had

595
00:30:05.519 --> 00:30:07.559
just spout off, is you can't afford not to write

596
00:30:07.799 --> 00:30:12.039
like that's the of course. But yeah, some actual practical

597
00:30:12.160 --> 00:30:14.799
ways that they can figure out other things to do

598
00:30:14.960 --> 00:30:17.720
is look at the big items in your life. Those

599
00:30:17.720 --> 00:30:20.519
are some of the main areas where you're maybe overspending.

600
00:30:20.559 --> 00:30:22.680
Maybe you got a car with an auto loan interest

601
00:30:22.759 --> 00:30:25.599
rate that was higher than you realize and that payment's higher.

602
00:30:25.960 --> 00:30:29.359
Maybe it's time to downgrade to a different car. I'd

603
00:30:29.359 --> 00:30:31.359
even be willing to bet like most young adults, you're

604
00:30:31.400 --> 00:30:33.599
probably in the best shape of your life. Or that

605
00:30:33.640 --> 00:30:36.400
you're going to be. Maybe you could bike. Get a

606
00:30:36.440 --> 00:30:38.839
knee bike right, saves so much money in that area.

607
00:30:39.319 --> 00:30:43.000
I think people aren't willing to sacrifice. That's the biggest

608
00:30:43.279 --> 00:30:46.000
problem with my generation is that we look at these

609
00:30:46.039 --> 00:30:49.759
previous generations and maybe they're homes that have increased in

610
00:30:49.839 --> 00:30:51.839
equity and stuff, and we just throw a pity party.

611
00:30:52.240 --> 00:30:54.200
But I think the thing that we actually need to

612
00:30:54.240 --> 00:30:57.880
do is be willing to sacrifice. Whether it's downgrading our car,

613
00:30:58.519 --> 00:31:00.920
or maybe it's not going out to eat all the time.

614
00:31:01.039 --> 00:31:03.680
Maybe it's doing some meal planning. There's a there's a

615
00:31:03.680 --> 00:31:05.720
lot of ways that we can pick up those extra dollars.

616
00:31:06.160 --> 00:31:08.400
And here's a great one. Say your four oh one

617
00:31:08.480 --> 00:31:10.359
k to the amount that you need it to be,

618
00:31:10.799 --> 00:31:13.319
and then your lifestyle will adjust. There's a great book

619
00:31:13.359 --> 00:31:16.759
called The Automatic Millionaire that talks about your lifestyles. It's

620
00:31:16.799 --> 00:31:19.240
like a liquid, right, it's gonna fit the jar, like

621
00:31:19.359 --> 00:31:21.000
the jar that you put it in. And so if

622
00:31:21.000 --> 00:31:22.920
you put it in, if you give it a smaller amount,

623
00:31:23.079 --> 00:31:25.960
your lifestyle is going to fit an adjust and guess

624
00:31:26.000 --> 00:31:28.200
what you're going to be just fine, Because no one

625
00:31:28.200 --> 00:31:30.759
ever comes back and says, well, let's decrease that four

626
00:31:30.839 --> 00:31:32.640
one K amount. I don't like how much I'm saving

627
00:31:32.640 --> 00:31:35.079
for retirement. They say, oh, I'm fine, now I can.

628
00:31:35.160 --> 00:31:38.079
I can live under this condition, and you're gonna be Okay.

629
00:31:38.079 --> 00:31:40.119
People are more resilient than they think they are.

630
00:31:40.480 --> 00:31:43.960
Right, So all right, so let's do our let's do

631
00:31:44.000 --> 00:31:50.119
our object lesson. So this is I'm gonna start contributing

632
00:31:50.119 --> 00:31:52.119
to a four oh one K and get that match,

633
00:31:52.359 --> 00:31:56.400
or oh I just can't do it, so go for it, Skyler.

634
00:31:57.480 --> 00:32:01.119
Yeah, so really it all comes down to that compound interest, right,

635
00:32:01.559 --> 00:32:03.480
and the balance is I don't have a ton of

636
00:32:03.519 --> 00:32:05.880
things to add in here, but the balance is like,

637
00:32:05.920 --> 00:32:09.319
as you're just doing one little thing at a time, Yeah, sure,

638
00:32:09.359 --> 00:32:11.519
it won't look like a whole lot in the beginning.

639
00:32:11.839 --> 00:32:13.279
So let's say you put it. You put a dollar

640
00:32:13.279 --> 00:32:14.680
in the four to one K, or you put a

641
00:32:14.720 --> 00:32:18.880
dollar into buying something off the dollar menu. Right, that's

642
00:32:18.880 --> 00:32:21.279
still a dollar over here, and that's still a dollar

643
00:32:21.319 --> 00:32:23.680
over here. But over time, that dollar is now gone

644
00:32:23.680 --> 00:32:26.160
because you're spending it. And as you keep adding more

645
00:32:26.160 --> 00:32:29.680
money into the one that's your investment account, the compound interest, right,

646
00:32:30.039 --> 00:32:31.839
that money just keeps going up. All the money that

647
00:32:31.880 --> 00:32:35.920
you're trying to spend just keeps disappearing. So the key

648
00:32:35.920 --> 00:32:38.920
thing there is just to imagine the money growing. So

649
00:32:39.200 --> 00:32:42.599
if you're doing this object lesson, have several other dollar

650
00:32:42.599 --> 00:32:44.680
bills that you can add to show it doubling. Right,

651
00:32:45.119 --> 00:32:47.720
So if you had like forty dollars in one dollar bills,

652
00:32:47.720 --> 00:32:49.480
you add one at a time and you say, okay, now,

653
00:32:49.839 --> 00:32:52.319
after a few years it's doubled, and then you had

654
00:32:52.359 --> 00:32:54.000
to put two on top of it, and now it's

655
00:32:54.079 --> 00:32:55.680
at Now it's at two, and then you say it

656
00:32:55.680 --> 00:32:57.480
doubled again, you put it at four, and you just

657
00:32:57.480 --> 00:32:59.880
watch how quickly that grows once it starts getting upwards,

658
00:32:59.880 --> 00:33:03.160
the ten becoming twenty, and twenty becoming forty. Right, that's

659
00:33:03.200 --> 00:33:05.640
where the magic's going to be shown. So make sure

660
00:33:05.680 --> 00:33:07.279
you have a whole lot that you can pile up

661
00:33:07.359 --> 00:33:09.400
quickly because it's going to get big quickly. It'll probably

662
00:33:09.440 --> 00:33:12.119
even surprise the person teaching that you're saying, wow, I

663
00:33:12.160 --> 00:33:15.000
didn't actually bring enough change to show one hundred turning

664
00:33:15.000 --> 00:33:17.720
into two hundred, right, So it's going to grow quickly,

665
00:33:17.759 --> 00:33:18.319
and that pile.

666
00:33:18.200 --> 00:33:24.359
Is going toother There's another way, another way that we

667
00:33:24.400 --> 00:33:27.440
could talk about this, and that would be if you're

668
00:33:27.440 --> 00:33:31.640
not contributing, then all your money it's gone, right, it's

669
00:33:31.880 --> 00:33:35.599
home is gone. But if you're contributing a dollar, and

670
00:33:35.680 --> 00:33:38.359
you're contributing a dollar and that's coming out of your paycheck,

671
00:33:38.400 --> 00:33:42.599
but then your employer is contributing a dollar, then that's

672
00:33:42.599 --> 00:33:47.000
another way to realize. Oh wow. So, like we had

673
00:33:47.039 --> 00:33:51.200
talked about before, it's not all coming from you. And

674
00:33:51.440 --> 00:33:53.240
like you said, I think it's a good way to

675
00:33:53.279 --> 00:33:55.640
think about it, is it's part of your paycheck.

676
00:33:56.559 --> 00:33:59.200
Yeah, you can even have some dollar bills aside, showing

677
00:33:59.200 --> 00:34:01.559
the employer mad and say, oh, this is coming out

678
00:34:01.599 --> 00:34:03.920
from behind a secret curtain. Here's a couple more dollars

679
00:34:04.000 --> 00:34:05.559
to throw on pretty much.

680
00:34:06.119 --> 00:34:12.280
Right. So then imagine that you add in the compound

681
00:34:12.320 --> 00:34:16.280
interest layer. So you know, people are all boring, boring,

682
00:34:16.559 --> 00:34:20.199
but compound interest is really There's been there's been quotes

683
00:34:20.239 --> 00:34:23.119
out there that I've talked about how compound interest is magic,

684
00:34:23.800 --> 00:34:27.000
and the money on that plate, the whole thing is

685
00:34:27.039 --> 00:34:30.800
going to earn interest and that's compound interest. And so

686
00:34:31.119 --> 00:34:34.519
it just and like you were saying, it can become

687
00:34:34.840 --> 00:34:41.559
quite substantial from those small beginnings and like my husband,

688
00:34:41.599 --> 00:34:46.480
who's a retired pharmacist, he did okay in his savings.

689
00:34:46.599 --> 00:34:49.519
You know, he had worked forty nine years as a pharmacist.

690
00:34:50.320 --> 00:34:53.760
But one thing that he said was, I wish I

691
00:34:53.800 --> 00:34:56.039
would have contributed a little bit more. Every time you

692
00:34:56.119 --> 00:35:00.280
got a raise, part of it would go. Time you

693
00:35:00.280 --> 00:35:03.840
got to raise, part of it would go towards increasing

694
00:35:03.880 --> 00:35:07.360
the four one K. But now he's on the other

695
00:35:07.480 --> 00:35:09.960
end and he's going, God, I wish I would have Yeah,

696
00:35:09.960 --> 00:35:15.760
I need more. But you know, he did okay, And

697
00:35:17.079 --> 00:35:19.559
so there would be some questions that a grandparent could.

698
00:35:19.639 --> 00:35:25.719
You know, So so grandson comes to grandparents and says, hey,

699
00:35:26.159 --> 00:35:30.880
I just got a job. What should that grandparent ask, Yeah, do.

700
00:35:30.840 --> 00:35:33.519
You have a retirement account available? That's that's a good

701
00:35:33.519 --> 00:35:35.000
place to start. Or have you ever heard of a

702
00:35:35.000 --> 00:35:37.000
four oh one K? Does your does your job have

703
00:35:37.119 --> 00:35:39.760
a four to one K? And if they don't have

704
00:35:39.800 --> 00:35:41.679
a four one K, they say, oh, I don't know

705
00:35:41.880 --> 00:35:44.960
what that is. Maybe you give them a couple questions

706
00:35:44.960 --> 00:35:46.840
they could take to their HR department, because that's going

707
00:35:46.920 --> 00:35:49.159
to be who runs this. You could say, hey, well,

708
00:35:49.280 --> 00:35:51.280
next time you're back in the office on Monday, when

709
00:35:51.280 --> 00:35:54.360
you start, can you ask your manager or ask your

710
00:35:54.639 --> 00:35:57.719
HR rep that you go to and say, what retirement

711
00:35:57.760 --> 00:35:59.960
options do we have? And they'll likely give that person

712
00:36:00.119 --> 00:36:02.960
in a print out or some sort of pamphlet right

713
00:36:03.000 --> 00:36:05.239
that shows the different options, and be like, I want

714
00:36:05.280 --> 00:36:06.679
you to bring that pamphlet back to me when you

715
00:36:06.679 --> 00:36:09.119
come back over for dinner this weekend, and you and

716
00:36:09.159 --> 00:36:11.079
I are going to sit down and talk through what

717
00:36:11.159 --> 00:36:13.800
these different accounts are. So I think that's been huge

718
00:36:13.800 --> 00:36:16.760
for me with my clients there young adults, is giving

719
00:36:16.760 --> 00:36:19.840
them the questions to ask their employer if they're unsure

720
00:36:20.360 --> 00:36:22.760
about what options are available, because again, it just seems

721
00:36:22.760 --> 00:36:25.119
overwhelming and you have a job to figure out how

722
00:36:25.119 --> 00:36:27.480
to do, so you don't want to then also detour

723
00:36:27.519 --> 00:36:30.360
and ask all these other questions. So it's taking your

724
00:36:30.400 --> 00:36:33.079
knowledge and saying, hey, ask these couple things to your

725
00:36:33.119 --> 00:36:35.000
work and then bring it back and let's sit down

726
00:36:35.000 --> 00:36:37.679
and have a conversation about it. Because no young adult

727
00:36:37.760 --> 00:36:40.840
wants to start a conversation with their boss sing do

728
00:36:40.880 --> 00:36:42.199
we have a four to oh one? K? I don't

729
00:36:42.239 --> 00:36:44.079
know what that is, but do we have one? Right?

730
00:36:44.119 --> 00:36:47.079
So like, be that liaison a little bit between the

731
00:36:47.079 --> 00:36:50.400
benefit and what they have available at work.

732
00:36:51.519 --> 00:36:53.840
So we're going to run out of time really fast.

733
00:36:53.960 --> 00:36:57.159
It always happens. So let's do the object lesson first.

734
00:36:57.440 --> 00:36:59.360
So the last thing, and this is going to wrap

735
00:36:59.440 --> 00:37:03.320
up all these ideas we're going to. It's basically it's

736
00:37:03.400 --> 00:37:06.400
the story and the object lesson of the big rocks,

737
00:37:07.079 --> 00:37:12.159
and it's all about priorities, right, and trade offs. So

738
00:37:13.159 --> 00:37:15.440
before we bring we have a little visual for that.

739
00:37:15.559 --> 00:37:19.480
But Skylar, can you describe the classic big rocks in

740
00:37:19.519 --> 00:37:20.400
a jar analogy.

741
00:37:21.320 --> 00:37:23.360
Yeah, So the way it goes is that you have

742
00:37:23.440 --> 00:37:27.159
all these small things or sand in your life that

743
00:37:27.639 --> 00:37:29.760
maybe aren't the big priorities that you need to take

744
00:37:29.760 --> 00:37:32.519
care of. Maybe it's it's things like spending all your

745
00:37:32.519 --> 00:37:34.440
money to go out with friends, it's spending all your

746
00:37:34.440 --> 00:37:37.599
money on different little activities and whatnot. And if you

747
00:37:37.599 --> 00:37:40.280
put those in first, it's going to create this dense

748
00:37:40.360 --> 00:37:42.559
layer that you can't really get past. And then you're

749
00:37:42.599 --> 00:37:44.719
going to try to suddenly do the big things like

750
00:37:44.760 --> 00:37:47.159
saving for a home or saving for retirement, and these

751
00:37:47.199 --> 00:37:50.400
bigger rocks or bigger priorities won't all fit because there's

752
00:37:50.400 --> 00:37:53.159
that thick layer of smaller things or sand, and you'll

753
00:37:53.159 --> 00:37:55.519
see it on the image once we once we pull

754
00:37:55.559 --> 00:38:00.280
that up, but really it creates this inability to fill

755
00:38:00.280 --> 00:38:02.760
it properly. Yeah, so you'll see on the left there,

756
00:38:02.760 --> 00:38:04.920
that's kind of what I'm describing that if you do

757
00:38:04.960 --> 00:38:07.960
all the random things with your money that aren't going

758
00:38:08.119 --> 00:38:10.760
to amount to much more than just money leaving your account,

759
00:38:11.159 --> 00:38:13.800
it's going to create this base that you can't then

760
00:38:13.880 --> 00:38:15.199
fill up the big priorities.

761
00:38:15.679 --> 00:38:18.760
And usually I would add, it's usually not like how

762
00:38:18.840 --> 00:38:22.519
it's usually three quarters of that jar, which is basically

763
00:38:22.599 --> 00:38:26.000
time in your life, and you can't even get all

764
00:38:26.039 --> 00:38:26.920
the big rocks in.

765
00:38:27.320 --> 00:38:29.280
Yeah, this person got lucky that they still fit. They

766
00:38:29.280 --> 00:38:31.880
probably didn't show some and they didn't fit them all right.

767
00:38:34.679 --> 00:38:38.199
Yeah, So basically on the right side, you're saying you

768
00:38:38.280 --> 00:38:45.360
do the most important things first and then the pebbles. Yeah.

769
00:38:45.440 --> 00:38:49.239
So those big ones are saving for retirement, saving for

770
00:38:49.320 --> 00:38:52.320
a home down payment, saving for like for my wife,

771
00:38:52.320 --> 00:38:54.599
and I'd saving for an adoption expense. Like that's a

772
00:38:54.639 --> 00:38:56.880
big rock that has to go in there first. And

773
00:38:56.920 --> 00:38:59.960
then guess what, Suddenly all those little items, when if

774
00:39:00.039 --> 00:39:02.159
there's some that don't fit, you realize they're not that important.

775
00:39:02.559 --> 00:39:05.239
So for us it's all these different Amazon purchases of

776
00:39:05.360 --> 00:39:08.320
nice to haves that just don't fit because we have

777
00:39:08.400 --> 00:39:10.400
these big rocks taking its place. But the nice thing

778
00:39:10.480 --> 00:39:13.079
is is the rest of it will fit nicely around

779
00:39:13.159 --> 00:39:16.039
these big rocks, Like you can fit in and spend

780
00:39:16.159 --> 00:39:17.840
the rest of your money how you want, but it's

781
00:39:17.840 --> 00:39:19.920
going to fit into your lifestyle because you've taken care

782
00:39:19.960 --> 00:39:21.440
of the big priorities first.

783
00:39:21.800 --> 00:39:23.639
I think you feel better about yourself too.

784
00:39:24.239 --> 00:39:26.360
Well, yeah, because it's easy to say, oh, yeah, this

785
00:39:26.440 --> 00:39:29.519
little bit won't work because we have this big rock

786
00:39:29.760 --> 00:39:32.920
already ready and being worked towards. Right, it's so much

787
00:39:32.920 --> 00:39:35.079
easier for us to say, well, that thing in our

788
00:39:35.079 --> 00:39:37.920
Amazon car or that latest smart home gadget. That's my

789
00:39:38.960 --> 00:39:41.840
real money trap is smart home stuff. But I'm able

790
00:39:41.840 --> 00:39:43.880
to say, yeah, that's not an expense we need to

791
00:39:43.880 --> 00:39:45.760
spend right now because we're saving for adoption, and it's

792
00:39:45.800 --> 00:39:47.519
so much easier to delete it out of the car

793
00:39:47.679 --> 00:39:48.920
and never think about it again.

794
00:39:49.639 --> 00:39:52.400
Right, How do you think? How do you think a

795
00:39:52.440 --> 00:39:55.800
family could help Someone is just getting started to identify

796
00:39:55.880 --> 00:39:57.119
what a big rock would be.

797
00:39:58.400 --> 00:40:00.360
Yeah, I think it's looking back in you using your

798
00:40:00.360 --> 00:40:03.440
own stories of mistakes or achievements and stuff, and saying,

799
00:40:03.760 --> 00:40:05.400
here were some of the big rocks that came up

800
00:40:05.400 --> 00:40:07.679
in my life, Like my wife and I didn't expect

801
00:40:07.760 --> 00:40:11.440
to need to adopt to grow our family. But that's

802
00:40:11.440 --> 00:40:14.039
something that now when we teach, like our children or

803
00:40:14.159 --> 00:40:16.199
grandchildren will say, Hey, there's going to be these big

804
00:40:16.280 --> 00:40:19.559
rocks that come up out of nowhere seemingly, and you're

805
00:40:19.559 --> 00:40:21.239
still going to have to account for them and adjust

806
00:40:21.280 --> 00:40:23.199
and maybe dump out a little bit of the sand

807
00:40:23.280 --> 00:40:26.079
so the big rock will fit fit and make some adjustments. Right,

808
00:40:26.119 --> 00:40:29.719
it's taking your life stories and identifying the rocks and saying,

809
00:40:29.800 --> 00:40:32.679
here's here's my list of rocks that like for your husband,

810
00:40:32.679 --> 00:40:34.559
he maybe wished to put the retirement rock in there

811
00:40:34.559 --> 00:40:36.440
a little sooner. Maybe it's like poking at the top

812
00:40:36.480 --> 00:40:39.440
it didn't quite fit. So identifying those and sharing those

813
00:40:39.480 --> 00:40:41.239
stories to bring us back to what we talked about

814
00:40:41.239 --> 00:40:45.039
in the beginning is going to be a huge deal. Cool.

815
00:40:46.159 --> 00:40:49.679
Well, okay, I want to kind of we're almost out

816
00:40:49.679 --> 00:40:54.559
of time, Skyler, so let's turn these lessons into actions

817
00:40:54.599 --> 00:40:58.079
and some next steps. So if a listener wants to

818
00:40:58.119 --> 00:41:00.920
start this week and so I guess we could take

819
00:41:01.000 --> 00:41:03.760
that you know, just just keep that thought, put the

820
00:41:03.760 --> 00:41:09.800
big rocks in first as we take that that graphic down. So,

821
00:41:09.800 --> 00:41:12.760
so Skyler, if a listener wants to start this week,

822
00:41:14.039 --> 00:41:18.679
what's one simple conversation or object lesson that they could

823
00:41:18.760 --> 00:41:23.039
do with a grandchild or their child. What would that

824
00:41:24.039 --> 00:41:24.559
could start?

825
00:41:25.360 --> 00:41:28.440
I would do either the compound interest one if they're

826
00:41:28.719 --> 00:41:30.400
if it's a kid that has a job, that has

827
00:41:30.440 --> 00:41:32.559
a retirement account, right and they need to start saving

828
00:41:32.559 --> 00:41:35.880
in it, use that compound interest example to pile up

829
00:41:35.920 --> 00:41:38.119
some money for them and say, if you save into

830
00:41:38.119 --> 00:41:40.519
this now, it's going to grow into this mound of cash. Right.

831
00:41:40.920 --> 00:41:43.079
But the other one is if it's if it's a

832
00:41:43.119 --> 00:41:46.079
kid or a grandkid that's maybe in their early teens

833
00:41:46.159 --> 00:41:48.960
or whatever working their first job. I think the divvying

834
00:41:49.079 --> 00:41:52.239
up the paycheck is going to be even more beneficial

835
00:41:52.320 --> 00:41:54.280
to that age group because they're going to be able

836
00:41:54.280 --> 00:41:56.960
to say, it's if you stick to these percentages the

837
00:41:56.960 --> 00:41:59.840
rest of your life, you'll be just fine. So it

838
00:42:00.119 --> 00:42:01.800
starting out just kind of meet them where they are

839
00:42:01.880 --> 00:42:04.519
and have that conversation of here's your retirement account, here's

840
00:42:04.519 --> 00:42:06.960
what it can grow into, or here's your first paycheck,

841
00:42:06.960 --> 00:42:09.280
here's how you should think about splitting it up. I

842
00:42:09.280 --> 00:42:11.639
think those are both going to be great first conversations.

843
00:42:13.119 --> 00:42:17.519
So for young adults that are ready to take in

844
00:42:17.559 --> 00:42:19.239
the next step, where would they find you?

845
00:42:19.960 --> 00:42:23.079
Yeah, my home is on YouTube and on any podcast

846
00:42:23.079 --> 00:42:26.000
player if you search financial planning for young adults. Somehow

847
00:42:26.000 --> 00:42:27.679
I got lucky and I'm the only one named that,

848
00:42:28.000 --> 00:42:30.559
so that was kind of a stroke of luck there.

849
00:42:30.559 --> 00:42:32.599
But if you search financial planning for young adults, you'll

850
00:42:32.599 --> 00:42:35.800
find me. We're talking about all sorts of different topics

851
00:42:35.840 --> 00:42:38.800
like Trump accounts and taxes and all sorts of different

852
00:42:38.800 --> 00:42:41.320
things that apply to young adults and their financial picture.

853
00:42:42.400 --> 00:42:46.599
Awesome. And the other thing that will be available will

854
00:42:46.639 --> 00:42:52.400
be a PDF of our three object lessons, so that

855
00:42:52.480 --> 00:42:54.480
you can download that and take a look at that

856
00:42:54.519 --> 00:42:57.639
and use it in your family, and information about where

857
00:42:57.679 --> 00:43:02.800
to find Skyler Tyler. With that, our time is up,

858
00:43:03.599 --> 00:43:06.320
and so I'd like to thank you so much for

859
00:43:06.440 --> 00:43:08.199
joining me today.

860
00:43:08.440 --> 00:43:09.599
Thank you has a ton of fun.

861
00:43:10.440 --> 00:43:12.320
Any final thoughts.

862
00:43:12.280 --> 00:43:14.280
No, I think I think everyone just needs to realize

863
00:43:14.320 --> 00:43:16.440
it's easier to talk about money than you think. So

864
00:43:16.960 --> 00:43:19.480
just take that step and start a conversation and it's

865
00:43:19.480 --> 00:43:20.920
going to lead you to a whole lot of better

866
00:43:20.960 --> 00:43:22.199
places than just ignoring it.

867
00:43:22.800 --> 00:43:27.920
Yep. So with that, make sure that you take some

868
00:43:27.920 --> 00:43:30.840
steps this week to implement what we've talked about today.

869
00:43:31.280 --> 00:43:33.760
And thank you so much for joining us on the

870
00:43:33.840 --> 00:43:36.719
Ask Good Questions Podcast. We'll see you next time.

871
00:43:41.199 --> 00:43:44.800
Today's episode is over. But we did ask Good Questions again,

872
00:43:44.920 --> 00:43:49.119
didn't We don't miss out as we broadcast live every Wednesday,

873
00:43:49.159 --> 00:43:52.920
six pm Eastern Time on W four CY Radio at

874
00:43:53.119 --> 00:43:56.920
w four cy dot com. Joined Banina Bell Anderson next

875
00:43:56.920 --> 00:44:01.400
week for more conversations with experts on fine finances, retirement,

876
00:44:01.519 --> 00:44:04.519
behavioral finance issues, health and wellness.

877
00:44:04.280 --> 00:44:05.000
And more.

878
00:44:05.400 --> 00:44:09.320
Until then, remember to ask good questions.