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Getting Money Right

Author: Leo Sabo & David Thompson

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A show dedicated to helping you achieve financial freedom through education and inspiration, so you can be freed-up to pursue your true life's purpose. Not understanding money leads to financial stress, money fights, and unrealized dreams and goals. This doesn't have to be your reality! We make managing money simple to understand and easy to implement through practical advice and easy to use resources that will ensure you're success.
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When you consider having available cash on hand, you may think the more you have, the better, but that’s often not true. In this episode of Getting Money Right, we’re discussing when too much cash can be a bad thing and offer some recommendations for what to do when you’re in this situation.
To be an effective investor, you need to understand how the economy affects different markets. In this episode of GMR, we revisit some of the concerns we discussed back in September of 2020 due to the pandemic and economic stimulus the government has provided. The question we should all be asking and preparing for is, are we headed for a market crash, or will we see continued economic growth?
To be an effective investor, you need to understand how the economy affects different markets. In this episode of GMR, we revisit some of the concerns we discussed back in September of 2020 due to the pandemic and economic stimulus the government has provided. The question we should all be asking and preparing for is, are we headed for a market crash, or will we see continued economic growth?
Show NotesDifferent Insurance Profit MarginsProperty Casualty Insurance averages a 2.7% profit.Life insurance companies had an average NPM of 9.6%. Home Warranty - 20%+ Profit Margins - EBITA According to Dave Ramsey, a personal finance expert, about 85% of the home warranty amount is absolutely profit and commission to the people.Professional Sources’ PerspectiveConsumer reports recommend that you take the money you would pay on a home warranty, and put it into a savings account for repairs. If you want to review any home warranty company that you’re considering purchasing, the best way to do this is to look online at reviews of the company and check the Better Business Bureau. State Department of Insurance says, “the major struggle is the difference between what the customer expects, and what the warranty actually covers.”Things you should know:Contractor quality - Good contractors usually do not need to work with home warranty companies.What’s covered and what’s not covered - repair versus replace. The company has the final decision on what they will fix or replace, and it doesn’t matter if you agree.If an item is to be replaced, the model is not up to the customer.They choose the contractor, not you.They might declare that there has been too much wear and tear, improper maintenance, or improper installation. May have additional fees for uncovered expenses, installation, disposal, and labor. Example: Fridge might be covered, but ice maker is excluded.Power surges or similar circumstances will not be covered.Limits on yearly allowed repairs, usually not very high.Company ratings and reviews:Be wary of online search reviews. They are often false and made up to make less than stellar companies look trustworthy.Don’t trust the customer testimonials that appear on a home warranty company’s website. You will likely find mostly five-star ratings and rave reviews. One company offered glowing reviews on its website, but at the BBB’s website, the firm received a one-star rating on average based on 593 customer reviews. It, too, gets a B rating from the BBB - Bankrate.comIt is best to go directly to the BBB’s website and find A or A+ rated companies and contact them directly.ResourcesBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesWhat you will hear in this podcast:I’m not anti-Wall Street! I love the Stock Market. It is my bright and shiny object, but it’s a game, and it’s a lot of educated gambling.You should not be putting your entire portfolio in the stock market, in my opinion. You should put a part of it.One of my favorite investments, and a favorite for my clients, is a very strong real estate portfolio.If you want to create real wealth, you want every dollar to create simultaneous benefits.Imagine that you own 10 homes, single-family residences, and you owned them outright? Do you think that might create a better-than-normal income for your family?I’m all for renewable energy; I love it! Weak link - battery! I have a very contrarian mindset. Look at what Warren Buffet is doing? Whenever everyone is fearful that’s when you should be greedy.In my opinion, why would you have everything in the Stock Market when you can have true diversification that’s not correlated?My wealthiest clients always start by dipping their toes in the water first. They can easily cut a big check, but when they get into a new investment, they always do the bare minimum.ResourcesKen Greene’s Website - www.greenefi.com Ken’ Podcast - www.engineeroffinance.comBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesHow to use credit cards without wrecking your budgetUse your credit card as a form of payment, not as an extra source of income.Assign each Credit Card transaction to a budget category.Ensures you’re only spending what you’ve planned.Helps you keep track of all your credit card usage.Makes it easier to pay the balance in full every month.Manage your money with a zero-based The best way to track expenses is with a debit cardYou can use a Credit card, but be aware, your checking account balance won’t match your budget tool until you pay off your credit card.Pay off the full balance each month, not the statement balance.Prevents you from overspending.Keeps everything reconciled and balanced.Eliminates interest charges.ResourcesDebt tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesWhat you will hear in this podcast:This thing that we call the stock market is really just this auction system of buyers and sellers for these companies that you and I use every day.Learning that I can be a part-owner in these companies just by buying a stock was just amazing to me, and that is what really set me off on the journey.Mental models are these thought experiences or ideas that can help explain a concept, and the reason I find them important is that they can really inform rational decision making.In this life, there are maybe 100 or so really big ideas that, if we grasp those ideas, will make us way better thinkers and decision-makers.One of the mistakes we new investors often make is we’re looking strictly at the past performance to inform a decision about the future.We can’t pay for yesterday’s growth. We can’t also punish yesterday’s declines either.There’s a big difference between a company that has a big brand name, something you recognize that you’re very familiar with their products and services, and the actual steadiness of the cash flow of that business.What helps me is not forgetting as an investor what we’re actually buying, what is the source of these returns, and where is the money actually coming from.One of the main sources of how I do my research is the 10K; that’s an annual filing with the Securities and Exchange Commission that every public company has to file on a yearly basis.You learn so much, even just sitting down and reading the annual report for half an hour.Combining that basic sense of valuation (PE ratio) with what I’ve learned already about the company is what informs my decision.If you’re a new investor and you want to get into the Market, by all means, explore Index Funds and start putting money away for your future, but if you do have an interest in learning about individual businesses, I definitely encourage that as well.At the end of the day, I want my families portfolio to exceed the rate of the Market’s return, and if I can get 2 or 3% compounded annually, that may not seem like much, but if you look over a 40 or 50-year period you’re looking at double or triple your net worth, and that’s life-changing.ResourcesAlex Mason Website - stockstoryteller.comCompanies Studied - https://stockstoryteller.com/podcast/companies/Mental Models - https://stockstoryteller.com/podcast/mental-models/Budgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesHow much should I be planning for retirement?The Income Replacement Ratio$45,000 in expenses (2 people 65 or older)$4,000 in expenses$2,500 in Social SecurityGap $1,500 has to come from other sourcesReal estate, stock/bonds/mutual/funds, annuities, etc.America’s Income ChallengeOnly 30% of people have a plan.From $4,000 a month, $1,000 a month needed for utilities, food, and property insurance could be covered by annuities.Most Americans will spend similarly in retirement as they did while working.The Three-Legged Stool of Fulfilling-Stage SavingsGovernment benefitsSocial SecurityCorporate benefitsPensions401(k)Private benefitsSavingsReal EstateAnnuitiesHistory of Annuity ProductsPeople view annuities as an investment instead of looking at them as an insurance product.Fees were high in the past. Today’s annuities are different, from low to no fees.Disclosure - People were taken advantage of in the past. The new legislature has changed that.JD Powers rating of annuities.Today’s annuities are useful for guaranteed income.Who should buy annuities?Typical annuity buyer is age 50 and older. Have $100,000 or more in assets.Purchase an $80,000 to $120,000 annuity to generate income in retirement.Although older people buy annuities, everyone should consider if these are good products to cover some of their retirement needs.The two options for buying annuitiesSingle premium - lump-sum purchase ($80,000).Flexible premiums - monthly contribution ($500 down and $200 per month)ResourcesHarry N. Stout Website - www.financialverse.comToday’s Annuity Products: A Tool to Create Protected Lifetime IncomeFinancial Verse Books by Harry N. StoutBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesToday’s Annuity: A Tool to Create Protected Lifetime IncomeWhat are annuities?An insurance productAbout a quarter trillion sold in the US each yearAnnuity companies are highly regulatedBenefits of AnnuitiesTax DeferralPrincipal ProtectionUnlimited Contributions for Non-Qualified AnnuitiesAbility to Be Swapped Tax-FreeProbate AvoidanceAccess to Cash When NeededOffset to Longevity RiskGuaranteed Protected Income*Death BenefitsNursing Home, Long-Term Care, and Terminal Illness BenefitsTypes of AnnuitiesFixed AnnuitiesVariable AnnuitiesBuffered or Structured AnnuitiesFixed Indexed AnnuitiesImmediate Income AnnuitiesDeferred Income Annuities and QLACsMajor positives and negatives to buying annuitiesThe Positives Produce higher returns than many other fixed-income options Option for guaranteed lifetime income Offer a variety of payout options Tax-deferred income accumulation Can have guaranteed/predictable rates of return Can have principal protection and no risk of principal to market volatility All 100% of premiums work to generate interestAvailable contract ridersThe Negatives Some products have fees and charges Restricted access to cash No capital gains tax rates on earnings Contractual bonuses come with strings attached Additional income taxes for withdrawals prior to age 59-and-a-half No additional tax benefit for qualified fundsComplexity Where can you buy annuities?  How difficult is it to purchase the product?The Places You’ll Look – The Purchase ChannelsBe Sure to Ask Key Questions to Ask Before You BuyThe Five Steps to Purchasing An AnnuityResourcesHarry N. Stout Website - www.financialverse.comToday’s Annuity Products: A Tool to Create Protected Lifetime IncomeFinancial Verse Books by Harry N. StoutBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesWhat you will hear and learn from this podcast:We believe books change lives; they change the lives of the reader, they change the life of the author in the process of writing it, and also in leveraged impact.We help people write and publish books to grow their impact, their income, and their business.I figured, Hey! I’m learning how to run a business from professors who have never run a business; that doesn’t make much sense to me, so why don’t I drop out.”“It’s not about the book, it’s about who you become in the process of writing that book.”“The big phases of writing a book are idea, writing, production, publish, and launch.”“If you’re a business owner, what is the conversation you are having over and over and over with clients or prospects?” When you write a book on that topic, you can point to it and you never have to talk about that ever again.”Writing your book is a series of steps. Step one is mind mapping. Step two is going from mind map to outline; grouping your ideas into sections, which you then break into chapters. Step three is writing or speaking your chapters to finish your first draft.“If you’re in the first camp, you love the writing but hate the marketing, you might think, “if I build it they will come. I will just publish it and not tell anyone.” That’s just not true. If you build it they will not come,... you have to tell them about it.”Get behind the marketing [of your book] even if you don’t like it...You’ve got to learn this skill set.”No one cares about you, your book, or your business as much as you do.”If you don’t understand it, you can’t manage it.”“I think there are all the other things that don’t get talked about enough, which are, the life skills that you learn in the process, and the confidence to role into the next thing and the next thing.”“If writing a book has been on your next year or maybe someday list for years, maybe even decades, you have to go from maybe someday to maybe now.”ResourcesSelf Publishing School - WebsiteChandler Bolt Books - Published, Book Launch, How to Not Suck at Writing Your First BookBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
Show NotesStaying on Track in Difficult SeasonsGet honest with yourselfHow committed are you to your financial health?Is your long term financial well being more important to you than you satisfying your immediate gratification?Are you engaged in a blame game? It’s not my fault!Financial health is about personal responsibility.It’s up to you. You are the benefactor or the casualty of your decisions.Determine that no matter what comes your way it is your responsibility and no one else’s to manage your money well.If you find yourself making excuses, “I’m doing my best” realize that you’re only giving yourself the license to continue making bad decisions.3 things to do ahead of time to prepare for life challengesSystematize your money managementUse a zero-based budgetAutomate bills and regular expensesBuild an emergency fund.1-3 months of bare-bones (survival) budget. Grow to 6 months after paying off consumer debt.Build your community / rely on your communityMoney is a big deal and your finances can change very quickly. It’s important to be connected to a support group that will provide financial wisdom in times of crisis. These are non-family members that will tell you the truth, and give you unbiased advice.Friends and familyListen to GMR Podcasts or other financial experts for encouragement and to reinforce the basics.Don’t be afraid to ask for support from your community, but also set a short-time line of when you think you’ll be back on track, make a plan to get back on track.In the midst of loss:Be self-awareTake time to grieveTake the appropriate steps to get healed (physically, emotionally, mentally)Don’t make any big financial decisionsKnow that things will get better. It may not feel like it, but this will pass, just like other seasons have come and gone, so will this one.ResourcesBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
5 Financial Mistakes to AvoidKeeping up with the JonesesSpend on purpose, and you’ll avoid the temptation to compare and keep up with others.Not setting the next goalAlways have the next goal in place before achieving the one you’re working on.Not protecting your wealthHave proper insuranceManage your cash flow and increase your reservesSpending before savingSave before you spend. This will ensure you never forsake your financial wealth and future for immediate gratification.Not diversifyingPutting your eggs into one basket is risky. Invest in different asset classes such as real estate, businesses, stock, and mutual funds.Increase your cash reserve to protect against having to dip into your long-term saving and investments.Avoiding these mistakes is for everyone, regardless of where you are on a financial journey. Not only will this protect your wealth, but more than likely grow it.ResourcesGMR 133: Common -Sense Reasons to Buy InsuranceBudgeting tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.comBlog: The 5 Biggest Mistakes People Make With Their First Million
Guest - Omer ReddenOmer Redden is the best selling author of several books including:How to Work from Home Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and FriendsGive and Grow Rich: Change Your Mind, Change Your MoneyIn his day-to-day, he works with an Inc. 5000 fastest-growing company, Self-Publishing School, which teaches people how to publish their books and use those books to leverage their impact, income, and businesses. What you will hear in this podcast:“That power of community, and the power of like-minded people, made it possible for us to triple the level of donations they’ve ever had for that food drive.”“I was learning what mission, vision, and value are, and as I was learning this stuff in the corporate world, I was like, why aren’t people doing this on a personal level?”“We’re going to do the 70-year old exercise, and reflect back on who did we become, who did we have an impact on, and what made up our life?”“Start giving today. Determine what that percentage is and just do it!”ResoucesGive and Grow Rich: Change Your Mind, Change Your MoneyLife Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends How to Work From Home - A QuickStart Guide: From Tech-Challenged to Tech-Pro in 1 Week Debt tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.comBeta Course Application
Show NotesGuest - Omer ReddenOmer Redden is the best selling author of several books including:How to Work from Home Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and FriendsGive and Grow Rich: Change Your Mind, Change Your MoneyIn his day-to-day, he works with an Inc. 5000 fastest-growing company, Self-Publishing School, which teaches people how to publish their books and use those books to leverage their impact, income, and businesses. What you will hear in this podcast:“I saw the trajectory of my life and I didn’t like where it was going, and I knew I needed to learn a new mindset when it came to money.”“I really truly believe I’m a writer, and that the Lord has equipped me to do that, and I felt that I needed to step into that gifting more.”“You’re right, the consistency across the board is that these guys were extremely generous, and they were generous before they were wealthy.”“Another thing about these billionaires is that none of them retired. They had a mentality to work 12 hours a day all their lives because they were that passionate and involved and driven to help.”“The thing that stuck out to me was the giving because I wasn’t doing it.”“My wife and I, our heart, couldn’t have been more full. When that happened it was the whole thing just clicked, and I was like, that’s when you give and grow rich.”ResoucesGive and Grow Rich: Change Your Mind, Change Your MoneyLife Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends How to Work From Home - A QuickStart Guide: From Tech-Challenged to Tech-Pro in 1 Week Debt tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.comBeta Course Application
Show NotesCost of raising a child - Check out this informative article on the cost of raising a child.Saving for and Teaching Your Kids the Value of Saving1. Begin with a personal financial assessmentGet an accurate picture of your own budget.How are you managing?Spending on purpose?Saving for future needs (emergency fund, long term savings)Do you have enough margin? This is where saving for your kids should come from.Adding a child or two and starting to save for their future needs should not be done by sacrificing your future. 2. Open a savings account for your childSave birthday money, and holiday gift money - grows over time.If your child earns an income, you could also help them open a Roth IRA account - gets a head start on long-term savings.Parents and grandparents can make gifts into a kids’ IRA.Can be used for certain expenses Education expensesBuying a houseCertain emergencies 3. Save for your child’s life experiencesVacations - fun experiencesMission TripsStudy abroadSave for a car (match 100% of what they save up to an amount).Funding these without first saving for them can set your own financial readiness and health backward.4. Save for your child’s college529 PlanEarnings from 529 plans are not subject to federal tax and generally not subject to state tax when used for qualified education expenses such as tuition, fees, books, as well as room and board. Contributions made to the 529 plan are not deductible.One of the many benefits of saving for a child's future college education with a 529 plan is that contributions are considered gifts for tax purposes. In 2020, gifts totaling up to $15,000 per individual will qualify for the annual gift tax exclusion, the same as in 2019 and in 2018.You only want to use the investments side of a 529 if you have more than 5 years to invest. (529’s are easy to set up at any major investment broker, like Vanguard, Fidelity, Charles Schwab, etc… you just click “open a 529 account” on their website and go through the process.OPTIONS FOR COLLEGE SAVINGS WITH LESS THAN 5 YEARS TO INVESTCD’s (Certificate of Deposit) saving account - Low risk with a 2 to 3 percent yearly return.Online saving or money market accounts - Low risk and low return, usually 1.5 to 2 percent, but better than the average traditional banks.Trying to find a 529 Plan, check out: https://clark.com/education/clarks-529-plan-guide/Roth IRA - up to $6,000 a year in 2020. Don’t forget to prioritize your own retirement savingsNo matter what, you shouldn’t save for kids to the detriment of your other goals. Make sure to take care of yourself and your own future first.Kids have more time to save for their future. You have less.College expenses don’t have to be 100% covered by you, especially if you have 3, 4 or more kids.ScholarshipsWork programsJobs.Make saving and investing for your own retirement a priority. Then, do what you can to save for your children.  Your Children Have Options to Cover their Education ExpensesPutting off college for a couple of years to work full-time and save for education is also an option. This, in our opinion, should be seriously considered, especially if the child isn’t sure what type of career they want to pursue.I, Leo, personally took a break between high school and college, and it proved to be very beneficial.  Not knowing which path to pursue, I got a full-time entry-level job. One year of working in the real world helped me to understand the value of higher education, and to commit to it wholeheartedly.   A recommended guide from bankrate.com - How to save for your childResourcesBeta Course Application Blog on leosabo.com - How to Prepare for College expenses. Debt tools and other free resources - https://leosabo.com/resourcesDavid’s website - www.stewardshippastors.com
The scarcity mindset believes there are limited resources and inequality in the possession of those resources. It further believes that for one person to succeed, someone must lose. In this episode of GMR, we reveal the truth about the scarcity mindset and why it isn't to your benefit to embrace it.
To build significant wealth, you’ll need to move beyond being an employee. This is because there are only so many hours in the day, and when you’re employed, you can only trade a limited number of hours in a day for income. In this episode, we talk with Josh Moore, the owner of Inclusion Coffee, to learn what it takes to build a business that never fails.
To build significant wealth, you’ll need to move beyond being an employee. This is because there are only so many hours in the day, and when you’re employed, you can only trade a limited number of hours in a day for income. In this episode, we share six steps to starting a business that will move you from employee to self-employed and gradually to business owners and investors.
No doubt you’ve heard the saying, “The rich get richer and the poor get poorer.” Well, there’s a good reason for this, and it comes down to mindset. What you believe about money, and how you think about it will lead to your actions, and eventually your results. In this episode, we discuss six specific ways the wealthy think differently so you can learn and develop your own wealthy mindset.
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Comments (14)

Attila Dinu

Just a heads-up. The link in the discription is not working. The "." at the end seems to be the cause of the problem. After I removed it, the link could be accessed without a problem. All the best from Romania!

Jun 2nd
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Emily White

⭐⭐⭐⭐⭐!!!

Jan 12th
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Daniella Solis

Amazing podcast!

Dec 31st
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Daniel Thompson

woderful podcast that goes over a number of challenging concepts and breaks them down for easy consumption

Dec 28th
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Jenny Guo

These amazing podcasts are the talks of heaven. Pretty inspiring, helpful, and entertaining time spent listening to them. Definitely recommend this channel.

Dec 17th
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David Thompson

A show dedicated to helping you achieve your life's true calling and purpose through education and inspiration on finances.

Dec 13th
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Ruben Precup

Inspiring podcast and great hosts. I recomend this podcast to everyone who wants to get his finances right!

Dec 10th
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Jeremy Silbernagel

An excellent example of common sense budgeting and investment strategy! if you have ever wanted to get your finances in order, and leave a legacy for your children, then this is the podcast for you! love this show! it WILL help you, check it out!

Dec 9th
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Ruslan Chapman

Wow! Love the Heart and Knowledge you have put into these segments. One can learn so much from these!!! Highly recommend!

Dec 9th
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Jonathan Carley

These are Awesome podcasts with great content!

Dec 8th
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Donald Harrison

This was very helpful and a MUST listen! Both gentlemen were fantastic at explaining why getting your finances situated is crucial.

Dec 8th
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micah thompson

This podcast does a very good job of taking a large subject and breaking it down to digest able information. the speakers are very informative and knowledgeable. Great Podcast!

Dec 6th
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David Thompson

Great podcast with excellent content!

Dec 6th
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Ashley Thompson

This is an amazing podcast filled with wonderful topics on personal finance! I love the hosts and guest speakers they have on here, what a great variety and wealth of knowledge! Keep it up, can't wait to hear more!

Dec 6th
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