College may not be worth it if most people in America don’t make more than $42,000 Coding Bootcamp for 10 – 12 weeks and $10,000 can get you a job for roughly $60,000 Does your field really require a degree and if so how many degrees are need Does your field value certifications and experience over a college degree and if so would the degree be worth the debt I am a big believer in life long learning but that doesn’t equate to a college degree College used to be only for the privileged, which lead to the belief that college makes your life better, but these numbers also include the 1% which shifts the average number way up What is net worth and how to figure it out for yourself In the IT field a four-year degree is obsolete before you can get it and it is odd that most college degrees in IT don’t get you any certifications Many fields have certifications that you could obtain on your own time instead of going to college for much less time and for much less money Some fields are moving so fast that only the last semester of your college degree is the only thing that isn’t obsolete Learn how to know if you need a degree or if a certification will get you in the door by going to LinkedIn and searching for current open jobs around the country To find out if the field you are interested in go to Google and search for your field and certification and then go to LinkedIn and search for those certifications to see what type of job that is required for I believe in this so much that my own son is following this path and not the path of his parents because I do not believe that college is worthwhile for most people If you can get a college degree with no debt, then it may be worthwhile to do (i.e. let your employer pay you to go to school part-time) School is designed for us to be a cog in a wheel or work in an assembly line, but the internet is disrupting almost every field – will the job you want be there after you spend 4 years in college or will you be better off to get a certification and get experience instead
Show Notes: Stocks – owns a part of the company Bond – owns the debt of a company or government Real Estate – owing rental property either personally or in a REIT Commodities – Gold, Silver, Oil, etc. Typically these are in the form of certificates, but could be in the precious metal Employer sponsored accounts – 401(k), 403(b), 457(b) – most people have a 401(k) as the other two are for non-profit or other employers that aren’t companies. Importance of employer sponsored matching accounts and why you don’t want to lose free money These accounts have yearly maxes that you can legally invest in them Traditional IRA is pre-tax and a Roth IRA is post-tax IRA has a much lower max you can legally invest in them per year than an employer sponsored plan Find out the importance of investing money both pre-tax and post-tax Mutual funds are a collection of different types of assets (typically stocks / bonds) Employer sponsored accounts and IRA’s invest in one or more mutual funds Mutual funds that have a date at the end of them is a self-balancing fund that changes the risk profile over time to safe guard more of your money Social Security (US only) will add to your retirement assuming it is still around when you retire – I don’t count on it for my future and you shouldn’t either unless you are close to retirement age right now. Angel investing is a way to invest in stocks before a company goes public – they are very high risk Angel investing only pays you if the company is bought out or is taken public Cryptocurrency is a way to invest in the decentralization of money – they are very high risk Cryptocurrency is based on a very real technology that will change the world (blockchain) but the jury is out on cryptocurrency Learn why cryptocurrency is really needed in countries where inflation goes nuts (think 100 – 1,000,000% type of inflation) Treat angel investing and cryptocurrency with money that you would be 100% ok with taking that same money in cash and burning it in a fire.
Show Notes: You need much to live on and much to live for (Retirement savings covers much to live on) Retirement calculators Need 10 – 12 times your income when you retire Figuring out what you really need to make when you retire Defining the number that equates to what you need to make (i.e. will mortgages, car payments be paid off?) Inflate the number you need to make a year by 20% and then multiply it by 12 (If you need $50k a year you will need roughly $600k in your retirement fund or $900 a month – if your company provides a match then you need less than this) Don’t figure social security into your numbers – if it is there then more money if it isn’t you aren’t counting on it to live on What is compound interest and why it matters to you Save what you can until you hit the number you believe you need to invest a paycheck We are living longer – there are more people living into their hundreds, so you will need more than what most calculators think you do
Show Notes: Pay yourself first (via direct deposit) Save more than you can afford to (you can always transfer it to checking) Create a $1000 emergency fund and why that number What happens if you need more than the emergency fund Start with something no matter how small The emergency fund helps you avoid going into (more) debt Make it automatic so you can’t sabotage yourself After you have an emergency fund save more incase you suffer job loss Learn how many months you need to save if you were to be downsized or fired 3 months if you are in a high demand field to 6 months if you are in a low demand field Figure out if you need your gross or net pay saved up Difference between gross and net pay Keep saving money until you have what you need to feel secure 10/10/80 Rule – move toward living on 80% income, 10% into savings and 10% to help others or give to charity you want to support How does putting my money in a retirement fund work with the 10/10/80 rule If your employer does 401k matching work on matching that as fast as possible (it is free money) How employer matching works and how to not lose free money It may take years to do this and that is totally ok because there are a lot of bad habits to change
In this episode we will cover... Supply and demand How much income do you make a month How much do you spend a month Creating a loose budget fast Ideas to cut your top expenses a month Importance of buying a used car and not a lease Meal planning to cut down on eating out Emergency savings account, why you need it and how much it should have in it Ideas to make your money go further in emergency situations For the free e-book talked about in this episode and other resources pertaining to this topic come to: OwnItMedia.Co/Budget All rights reserved ownitmedia.co 2018