Five Bad Financial Habits to Break Right Now!

5.10.24: Audio automatically transcribed by Sonix

5.10.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
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Speaker2:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker1:
Welcome to Money Matters with Mike, with your host, Mike Zeno. Get set for a full hour of financial information and economic news affecting your bottom line. Mike works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here's Mike Zeno.

Speaker3:
What's up, what's up, what's up? It's Mike Zeno coming to you from Fort Mill, South Carolina. Happy Saturday people. What a great time to be alive in these United States of America. Money matters with Mike is a show designed to arm you with information and give you plenty of meat on the bone to chew on each and every week. And today we are absolutely bringing the heat again. On today's show, we're going to discuss the importance of financial literacy. Plus, we'll give you some bad financial habits that you need to break right now. As always, I have the distinct honor and privilege of being joined by the one and only my co-host and producer extraordinaire, Mr. Matt McClure. Matthew, how are you today, sir?

Speaker2:
I'm doing great there, Mike. I hope you are too. We've had some stormy weather in Atlanta this week and I had to navigate that, but otherwise I've survived the storms and the floods.

Speaker3:
You know? So so this has been an interesting week for me. Uh, many of our listeners know that I am a national retirement counselor for over 74 different federal agencies. And so last week I flew up to Saginaw, Michigan, to speak with the Department of Veterans Affairs. And I flew back on Saturday, only to turn around Sunday and go back to Richmond, uh, Virginia to speak with both the Department of Justice, the Department of Defense, and the Defense Logistics Agency. So it has been a whirlwind week of travel for me, and I am excited to be back in the saddle again. Um, just wanted to remind everybody, uh, if you haven't gone out and shopped for mom, you've got, uh, less than 24 hours to do so. So that is my, uh, my, uh, good deed of the day.

Speaker2:
Yeah, exactly. And, you know, if you try and stop by the grocery store or something and pick up some flowers on the way to see mom tomorrow, you're probably only going to be left with kind of a sad looking flowers. Uh, on the on the shelf or in the cooler there. So, you know, go, go today if you if you want to maybe, uh, give yourself at least a slightly better chance at some not dead flowers for mom.

Speaker3:
Oh, no. No doubt.

Speaker2:
A lot of great stuff to happen here on the show. A lot of great stuff coming up this week to make mom proud. Um, because we got some bad financial habits, as you said, Mike, to break right now, some things that cost you a bundle every month. Uh, that's coming up. It really could cost you thousands each month. So we'll tell you how to avoid them. We've got an inflation demonstration about how Americans are cutting back on fast food spending, how inflation impacts your retirement. So we'll take that inflation demonstration and then show you how the rising prices affect what you are able to do for your retirement plan. And we'll tell you what you can do about it. And then we'll talk about financial literacy, a lack of it, according to a new study in this country. And, uh, we'll tell you how you can gain some financial knowledge out there. Also wanted to give a big shout out to our listeners, uh, in the greater Charlotte metro area here. Of course, we've got, uh, you listening on WRI. We really do appreciate it.

Speaker2:
Each and every week we bring you a brand new show. And we also want to thank you if you're listening via podcast and if you're listening via the radio and you say, oh, what? There's a podcast. Yeah, there is. You can do one of two things. You go to Money Matters with Mike. Com that's money matters with Mike. Com all one word there and you can subscribe there. Find us on your favorite podcast platform via the link on the page. Or you just go directly to your favorite podcast platform and search for Money Matters with Mike. And again, Money Matters with Mike. Dot com is the website. You can also call Mike Zeno for a free, no obligation consultation at 70456015737045601573, and that's really what it's all about, Mike. Again, the financial education is going to be a big part of the show as it is kind of every week for us, but a specific focus on that this time around and also helping people with their specific situations. Right. That's really the bread and butter of what you do.

Speaker3:
Yeah. I mean, unfortunately I our financial education system in the United States, it's been broken for quite some time. And and when we see it continued to decline, that's concerning for our future generations. So, you know, I, we like to do at least a little bit toward educating our listeners on how not to fall into the trap of financial illiteracy. So thank you each and every single one of our, our dedicated listeners, whether you're listening, uh, on WRI or on podcast, wherever you may be around the globe, without you, we don't have a show. So, uh, kudos to you for getting the information.

Speaker2:
Absolutely. And we'll get into the education and information here momentarily. First, though, let's get some inspiration for our conversations here today. It's our quote of the week.

Speaker4:
And now wholesome financial wisdom. It's time for the quote of the week.

Speaker2:
And this week's quote comes from a New York Times best selling author speaker as well, named Orrin Woodward. And he said this you can have a master's degree in making money, but you'll still wind up broke if you have a PhD in spending it.

Speaker3:
Yeah. How true is that right? I'm not familiar with Orrin, but I love those words of wisdom. And I think his quote encapsulates the notion that financial success is not solely about earning money. It's equally crucial to both manage and allocate those earnings wisely.

Speaker1:
Hungry for something to chew on. Here's some meat on the bone.

Speaker3:
We see it all the time. You got high earners, high income earners that live paycheck to paycheck, right? Those individuals may have lucrative careers, but they fall into the trap that so many people do of overspending, of accumulating debt. And, you know, quite frankly, living beyond their means despite that substantial income they might indulge in, you know, luxurious lifestyles, excessive spending on depreciating assets like automobiles or expensive vacations. And then they, believe it or not, neglect saving as well as investing for the future. Um, you know that that's huge right there. I know millionaires who literally are broke. And then and that's staggering. Right. And then I know 40,000 heirs who are literally, uh, buttoned up financially. What about folks who, you know, get some form of windfall? They either get a nice big inheritance or they win a lottery or, you know, you find that those individuals that have those sudden windfalls, they often end up broke despite their newfound wealth, because without proper financial education and discipline, they may squander the win on frivolous purchases, unsustainable lifestyle upgrades or unwise investments. Matt, what do you think about that?

Speaker2:
Yeah. You know, I mean, I've I've actually known people in my life who have done that very thing either from I haven't known anyone who's well, I kind of peripherally have known someone who's won the lottery, but I haven't known anyone very personally, you know, who's won the lottery or anything like that, but maybe from the sale of a home, and they had a big profit from that. And that, you know, you look a few months later and oh, where is that, you know, 100 grand that you had in your bank account. Oh, well, that's you know, it's all in the pockets of the good folks at Amazon or something. Now, you know, because it's it's like every day you got the porch filled with packages of stuff that you may not really even need. Chances are. So, yeah, it's, um, it's kind of it's easy to do when you have all this money. It just burns a hole in your pocket.

Speaker3:
Sometimes it does. And there's a statistic that's shocking as well for parents out there. Um, inherited wealth. 80% of inherited wealth is gone, blown within 14 months of receiving it. So, you know, there are some solutions, right? The first thing we must do is prioritize both financial literacy as well as learning good budgeting skills so that you understand where your money is going and you can make informed spending decisions. Create a spending plan that allocates funds for your essentials like, uh, you know, expenses, housing, food, shelter, savings, investments, as well as the discretionary spending and using tools like personal finance apps. Those can help track spending and help you stay within budget. But another thing that I suggest to avoid the temptation to keep up with the Joneses or succumb to the lifestyle inflation as your income grows, is to live below your means. So you have to distinguish the difference between your wants and your needs, and then prioritize saving and investing and resist unnecessary expenditures. So if you're able to develop and practice mindful spending habits that will help you build long term financial stability, that's one thing. Okay, we've talked about an emergency fund over and over and over again on our show, but the emergency fund is going to help cover those unforeseen expenses and help you to avoid relying on credit cards or, God forbid, personal loans for emergencies. And when you're able to prioritize your debt repayment to reduce interest payments and free up funds for saving and investing, that is going to put you in a better financial position long term. So in other words, invest for the future, right? Allocate a portion of your income towards long term investments. Long term investments like retirement accounts, uh, stocks, real estate, uh, diversify your investment portfolio to manage both risk and maximize your returns over the long term. And obviously, consider seeking professional financial advice that will help develop tailored investment strategies that are aligned with your financial goals, as well as risk tolerance.

Speaker2:
Yeah, and that is the biggie right there. I think, for, uh, the thing that I want to at least hammer home here, because if you are someone who is in need of that advice and that guidance along your financial road, I just happen to know a guy, uh, who can can help you with that. His name is Mike Zeno, and you can get in touch with him via Money Matters with mike.com. You can also call 704560. 1573.

Speaker3:
That is absolutely true, Matt. I happen to know that guy too. I look at him every day in the mirror. Right? But folks, achieving financial success requires more than just earning money. It demands prudent financial management, disciplined spending and strategic planning to ensure long term financial security and prosperity, and by practicing good financial habits, exercising that restraint, and investing wisely. All right, you who are out there listening can avoid the fate of winding up broke despite your earning potential.

Speaker2:
Yeah. And that yeah, that's going to be a much better situation that you'll find yourself in rather than being broke because you're living beyond your means, because you haven't done any of the things that you were just talking about, Mike. And that is really something that leads us right into this first segment of the show. It's almost like you plan these things, um, the some bad habits to avoid that literally cost you thousands. And I and I love the way that you, you know, you frame that in, in or in Woodward's quote there and then leading us right into this because these are important. And a lot of these are things that you just kind of framed maybe in a little bit different way there. But there are some very common things that people do, like living beyond their means. And we'll talk about some of those, uh, ways that people do that or some things that people don't do that could help them avoid living beyond their means, um, that are costing thousands. And, um, let's, let's dive into them here. Mike. There are five of them that we're going to share, five bad habits and we'll share those and how you can avoid them to save yourself some serious cash. All right. So number one is aha-ha not budgeting.

Speaker5:
Mm hmm.

Speaker3:
That does not surprise me. Okay. A recent study found that 27% of people, 27% do not have a budget. Or, in other words, a spending plan. Okay. So budgeting is actually an extremely powerful tool that can help you keep track of both your spending as well as over spending. Right? It helps you avoid overspending. And without having a spending plan, you might be spending way more than you actually realize. So please, I implore you, take some time and create a budget. All right, let's call it a spending plan and track all of the money that leaves your accounts each and every single month. It will make a huge difference in your financial well-being, I promise you.

Speaker2:
Yeah. What's going in, what's coming out? And make sure that there's not an imbalance there of too much going out and not enough coming in. That's where the overspending comes in. And and living beyond your means, which can, as you just said a moment ago, might really lead to a lot of financial pain. You could be one of those millionaires if you could make millions a year. But if you're, you know, if you make $1 million a year and you spend 1.5 million a year, you are broke.

Speaker3:
I see it all the time, unfortunately.

Speaker2:
Yeah. It's just, uh, it's sad because that's a you can have a really, really solid income. But if you're living beyond your means, it's not doing you much good there. Um, number two is another big thing that I know a lot of people get, uh, especially let's say, about, I don't know, five, six months ago, you know, we were going through the holiday season and maybe you racked up a lot of money on your credit cards, buying some gifts for people. Uh, maybe you did have an if you if you don't have an emergency fund, maybe you did have one of those unforeseen events come up and you're like, okay, well, I don't have this emergency fund. I'm going to put this on my credit card instead. That is not a good thing, as you alluded to earlier, Mike. And that's why number two here is overusing credit cards.

Speaker3:
Yeah, folks wake up. Okay. Uh, credit cards are not an emergency fund. Yes, they are super convenient. So much so that people just don't even think about using them. It's it's instant gratification, right? But they can also lead to overspending. And the average interest rate, average interest rate on credit cards is around 22%, which can really add up if you're one of those people that actually carries a balance from month to month. So please, please, please, please try to limit your credit card use only to necessary purchases, and then still make sure that you pay off your balance each and every single month, at least the statement balance, right? So you're not carrying over that interest. So you need to remember a credit card is not free money okay. And I will also say that if you cannot pay it off at the end of the month, guess what? You can't afford what it is that you're buying.

Speaker2:
Yeah. And the only credit card that's not even really a credit card. It's a charge card. That I use on a regular basis is one that has to be I. The balance has to be paid off at the end of every month. And that's the way that I sort of, you know, disciplined myself years ago to not go overspending on credit cards because I'm like, this is the one that I'm going to use, and it's got to be paid off every month. I kind of just use it sort of like a debit card. That way I can take advantage of the, you know, points that build up and the, you know, promotions and perks and all of that kind of thing. But I'm also not getting myself into a ton of credit card debt. And I had been there before. It is not a fun place to be.

Speaker3:
Not at all. American Express gotta love em.

Speaker2:
Yep. There you go. Exactly. Uh, so that's number two here. Number three, bad habit that could be costing you thousands of bucks every month. Uh, dining out. You know, it's fun and it's tasty and all the things, but, um, it costs a bunch.

Speaker3:
And I'm guilty of this one a lot. I'll tell you that right now. I'm guilty as charged. My wife is an amazing cook. She really, really is. But guess what? I can't take her with me on the road. And I travel a lot, so I eat out a lot. Everybody loves a good meal at a restaurant, but those costs. Guess what, folks? They really add up. And did you know that the average American. All right, the average American will spend $166 per person each and every single month on dining out? And that, folks, is a lot of dough. All right. Cooking at home is not only healthier, but it's also a much more cost effective option. So you should definitely try to cut back on eating out and start cooking more meals at home. You may need to brown bag it or get an old school lunch box to take to work, because ultimately your wallet will thank you.

Speaker2:
Yes, it absolutely will. Um, and, you know, I mean, if you go, you know, if you're going to go out, uh, maybe you limit yourself to a couple times a month, go to the early bird Special, go to where they're having some kind of, you know, special deal, special discount, particular day a week or something. Um, but don't, you know, overdo it, go for special occasions, that kind of thing. But, yeah, dining out every night, uh, is not a good financial plan at all. And probably you'll spend.

Speaker3:
A lot more than 166 bucks if you do that.

Speaker2:
Exactly. And and your waistline will not. Thank you for that either, I'm sure. Uh, as well. All right, so number four here on the list of bad financial habits we're talking about this time around, paying for unused services. This is so easy to do, Mike, because, you know, maybe you have. Let's talk about streaming services. For example, you have a show that comes on or a or a, you know, a mini series or something where there's like a limited series where there's just a few episodes and it comes on a particular streaming service that you don't have, and you're like, well, all right, I'm going to get this. I'm going to subscribe to the streaming service just to watch this show. Then when it's over, you never watch it again. But then you never cancel the streaming service because you don't want to go through the hassle or whatever. But those kind of things really add up to.

Speaker3:
They absolutely do. And they get you with the free trial, right? They just all you got to do is log on free trial, and then you totally forget about it a month later, and then you just start seeing these little 4.9979 nines and they really add up. So think about all of the different subscription services that you signed up for, whether it's streaming, whether it is a gym membership. And let's face it, it's in May. So if you had New Year's resolutions and you were hot and heavy in January and tailed off again in February, and then by March, you're pretty much done. Um, like so many people do. Uh, that may be something that you want to cancel as well. Ask yourself, are you actually using them regularly? And most folks are surprised to find out that they're spending way more on subscription costs than they even thought they were. So take a look at all of your subscriptions and then just evaluate how much value they bring to your life. Okay? If you're not using them, consider canceling them and saving that money instead.

Speaker2:
Yeah, that's it's going to do you a lot more good. Uh, going into some, some type of, uh, savings investment, something like that, where, where it's actually, you know, potentially earning some interest for you rather than sitting in your account and then just getting sucked out of that account every month, um, and going to something that you don't use at all. So yeah. Absolutely. Right. And number five here, Mike, on this list of five bad habits that you are doing or in this case, not doing that could cost you a lot. Uh, kind of piggybacking off of number four is number five is not investing.

Speaker5:
Yeah.

Speaker3:
Not investing. I see this a lot too. Unfortunately, people, you know, say they can't afford to invest money because they are living paycheck to paycheck. So I will argue that if you learn how to pay yourself first, it's amazing how you still find money to pay all of your bills. And while saving money is great, um, it's not the same as investing money because no one ever became wealthy by saving money in low interest accounts like savings account. So you're missing out on potential returns. Investing your money can help it grow significantly over time. And surprisingly, a survey found out that 28% of people have zero zip, zilch, nada. Nothing saved for retirement and 39% are not contributing to a retirement fund. So please don't miss out on the opportunity to build your wealth for your future. You should definitely consider investing and take advantage of the potential returns.

Speaker2:
Yeah, definitely. That's that's another one of those things we often say, you know, future you will thank you and you definitely will if you fall into that 28% of people who have nothing saved for retirement make that not the case for you. You know, make sure that you are contributing to your own future because, you know, life is more than about just what's happening in the here and now. And today. If you're not planning for the future, you're setting yourself up for failure in retirement.

Speaker3:
You know, it's funny, I just thought about, you know, my daughter, who's 23 years old and she opened up a I think it's called acorns on on some app that that basically rounds up every single purchase. It just rounds it up to the next dollar and it invests the pennies, um, that, you know, that rounded up to the next dollar. And, you know, when she first told me about it, she'd had it for several months and she just wasn't earning anything at all. And I happened to look at the way she was allocated. And you're going to laugh at this man. She's 23. She was allocated in a bond portfolio. And I said, um, no, no, no, no, no, no, no. We're going to change that to an aggressive growth strategy because you're only 23 years old. And in in actually, she was 22 at the point that this happened. And we just looked at it before. And she has several hundred dollars now of growth, not of deposits but of growth just because of that little twitch. So, you know, I'm going to just call out to all of my listeners right now, right. If you can avoid those five habits, you can make a huge impact on both your monthly savings as well as setting yourself up for future success in retirement. And another thing we're going to offer every single one of our listeners complimentary consultations that are aimed at helping you maximize your retirement savings and giving you the retirement that you've always dreamed of. So please give us a call (704) 560-1573 or reach out at Money Matters with Mike comm. And as always, there is absolutely no obligation whatsoever.

Speaker5:
Yeah, no obligation whatsoever.

Speaker2:
And just, uh, you know, you work with Mike if it is best for you. That's what it's all about. It's all about your particular situation. And, uh, that's. Mike's giving a big old thumbs up there. Uh, with with, uh, his his big green thumb, uh, that he's got, he's got a new toy. Everybody. He's got to use it.

Speaker1:
Want to know where your hard earned money is going. It's time for an inflation demonstration.

Speaker2:
So we all know about inflation and how it's had an impact on the cost of pretty much everything that we buy out there these days, services that we pay for, goods that we purchase, all of the above. But there's a new report now, Mike, that Americans are spending less on fast food now due to the rising costs.

Speaker3:
You know, that is not surprising me at all. Um, I was forced to eat at McDonald's because I was in a town, and it was the only food that was anywhere around. And I had a Big Mac, which, incidentally, is, uh, I think a cousin to what the Big Mac used to be. Or maybe the sun. It's like the little Mac now, it's not the Big Mac at all, but fast food chains like McDonald's, uh, Starbucks, Pizza Hut. They're feeling the impact of the consumer pullback. Why will my Big Mac extra value meal cost me almost $14? And when I saw what I got, I mean, it was obviously laughable. Um, Starbucks, you know, saw a surprise drop in in same store sales, which led to a 17% decline in its shares, and then Pizza Hut and Kentucky Fried Chicken. They also reported shrinking sales. The competition for customers has intensified as consumers become much more selective with their spending. I mean, they can actually go to, um, restaurants now that taste better and are more healthier instead of the fast food, um, you know, options.

Speaker2:
Yeah. And that's the thing too, like rising there's the report is saying that rising prices at fast food restaurants have actually been growing faster than even eating at home. Um, so, yeah, I mean, you've got options that are healthier, tastier, all of the things to still go and and eat out and still, you know, those sort of quick serve type restaurants. But then you also have eating at home. Um, and that really points out the fact that value is crucial here. What are you getting for those dollars that you're spending? If you can make an easy meal at home, that's nice and quick and tasty and all of the things, it's much more enticing to do that if you're spending less, it's also much more enticing for you to spend the same thing or very close to it. As you said, go to a nicer place. Sure.

Speaker3:
Yeah. Nothing bugs me more than when I am in a line at a fast food restaurant and it takes 20 to 30 minutes. I'm like, this is supposed to be fast food. If I wanted good food, I'd go someplace else, right? But yeah, it's one of those things that that the fast food and quick serve chains are starting to notice. And and in order to combat that, they're getting smart. They're adopting different strategies. And so McDonald's actually plans to create a nationwide value menu like they used to have. Um, that's going to appeal to, uh, your more thrifty customers. Although franchisees may push back a little bit due to the impact on the profits. Um, Starbucks is another one. It's focusing on deals, and it plans to release an upgraded app that allows customers to order, pay, uh, in advance, and actually get discounts that driving folks toward the app rather so that, uh, industry is hopeful that sales will bounce back. But it does remain uncertain on how long that will take.

Speaker2:
Yeah, it really it kind of remains to be seen given the inflation picture and and how stubborn it has been to come back down to earth. Um, because, you know, I mean, yeah, it's, it's come down from where it was, but it hasn't come down to where it needs to be or where where anybody wants it to be. Uh, so yeah, that's everybody's just in a battle here for all of the things.

Speaker3:
You know, Matt, it's not good enough anymore just to be a good income earner and a good saver. Okay. You need to actually have a plan that is designed to stand the test of time, no matter how much prices rise in the future. That's called a stress test plan. So get in contact with me today for a complimentary and no obligation consultation. Again, uh, websites money matters with mike.com. Or just give me a call at (704) 560-1573 and let's get you started for a successful retirement.

Speaker2:
Definitely the thing to do there. And so, you know, we're having this conversation about inflation obviously. And and you might be listening and thinking okay well that you know I know how that affects me. If I want to go out and have some fast food, it means that my fast food is going to cost more, which means I either have to just pay more, or I have to change my plans and go make a meal at home or whatever. All the different options we were just talking about, right? Well, the prices for everything are rising, not just fast food. So then if you're asking yourself, okay, how does this affect other things? How does this affect my retirement? For example? Let's dive into that. Mike. So how does this all sort of impact your planning for your. Future and especially you're planning for your retirement years.

Speaker3:
Yeah, we we've been, uh, talking about inflation. We call it the silent tax because of how much it steals from us. And we don't even know it's the thief in the night. Um, it's been on our minds for a couple of years now as prices rise for food, for gas, for housing and literally just about everything else. But inflation is actually a long standing economic factor that we just can't avoid. And the difference is, is that it's usually more subtle, which means that it's driving up costs slowly over time. Um, obviously, since Covid, we've seen a rapid rise in the, uh, you know, rate of inflation. But the problem is, is that like you just mentioned, Matt, inflation can really, really mess with your retirement. So let's talk about Social Security. Social security benefits are supposed to be adjusted each and every single year to keep up with inflation. However comma, historically, uh, those adjustments have not been enough, which means that seniors end up losing buying power year after year after year. So that's one way. All right. And then let's talk about your just plain old retirement savings. Even if you manage to save up a really good amount in your 401 K or your IRA, um, if your investments are not keeping up with inflation, then your savings might not stretch as far as you'd hoped when it's time to use them. Yeah.

Speaker2:
I mean, if the dollar doesn't go as far as it once did and your gains on your investments, hopefully you're seeing gains on your investments over time. Uh, if you don't see a return that keeps up with inflation, at least then you're going to be behind. And so how can you avoid those kinds of, of issues, Mike.

Speaker5:
You.

Speaker3:
Know, if you are young, if you're in your 20s or 30s, heck, your 40s and sometimes even 50s, you need to invest your savings aggressively while retirement is still far off. It can be scary to put a lot of money into stocks because why? Well, the stock market can be volatile, but if you take that risk, you might also get a much higher return on your investment, which means that you're going to have more money when you eventually do retire. And remember, you still have plenty of time to ride out any market downturns that might happen along the way. So, I mean, I always look at it like when the market dips, you should buy the dip even more so than you do when it's up high. Why you're getting the shares at a discount. And I like to think of my money as little soldiers so that I'm adding more soldiers to my army. Uh, so that when the market does turn around, they're going to charge back up that hill a lot faster. So let's just say that you're able to contribute $400 a month or $100 a week, um, toward a retirement plan. And you let that, um, marinate, okay, and earn compound interest for 40 years, and you're able to get an average annual return of 8%, which is a bit below the stock market's average, but it would give you over $1.2 million by the time you retire. So I hope that just woke some folks up 400 bucks a month, 100 bucks a week at an 8% return equals $1.2 million. So if you go for a more conservative 6% return, then you're going to end up with around 743,000, which is still a nice sum, but it's almost half of what you could buy going into a more aggressive style portfolio. Again, that's if you have time.

Speaker2:
Yeah, 100%. If you if you do have the time if your time horizon to use the technical term is, uh, longer than. Yeah, absolutely. Do that. Take a more aggressive approach toward those investments. Now, Mike, what happens though if you find yourself closer to your retirement years?

Speaker3:
Yeah. So I mean, if you're somebody that wants to retire in their early 60s or buy Social Security's full retirement age, which for most of our listeners is somewhere between 66 and 67. Okay. Um, you might consider moving more of your money into safer type investments, but that still offer market like returns. Okay. Consider investing in a fixed indexed annuity so that you're able to eliminate any market risk on that portion of your portfolio, but yet still having the opportunity to experience gains that are linked to the underlying market index, like the S&P 500. So when that index goes up in value, so does the value of your annuity. And when the index goes down, guess what folks. You don't lose a single red penny. You're protected. Zero becomes your hero. So inflation unfortunately isn't going anywhere anytime soon. So it's crucial to make sure that your retirement plan, as well as your entire portfolio, are protected against it. Okay. And by taking those steps, you can help ensure that inflation does not derail your retirement dreams.

Speaker2:
Absolutely. And so what you need to do, folks, is reach out for a complimentary consultation and retirement plan from the one and only Mr. Mike Zeno. Money matters with mike.com is the website that's Money Matters with mike.com 704 56015737045601573 is the phone number as well. And you can give him a call any time. If he doesn't pick up immediately, he will get back to you just as soon as humanly possible. I can promise you that. Um, and Mike talk here. Let's just take a just a quick moment to tell our listeners what that sort of experience is like if they do reach out for that complimentary consultation.

Speaker3:
Yeah. So the first thing we're going to do is just have a discovery call. We're going to get on the phone for 15 minutes or so, and I'm going to ask some questions, and I hope you ask me some questions. Right. We're getting to know each other a little bit and find out whether or not we want to move forward with a deep dive into your personal situation. The fact of the matter is, is that no individual situation is identical. Everybody has a different set of circumstances. So once we look at your specific set of circumstances, we can kind of get an idea for what your goals and objectives are. And then I can develop a plan for how to put you and get you from point A to point B.

Speaker2:
Yeah, there you go. And the point of it, of course, is getting you on the right track for your financial future and specifically for your retirement years as well, making sure that when you're not working, when you don't have that paycheck coming in every week or every other week or every month, whatever the case may be, that you are not high and dry and living off Social Security and in the poorhouse and all of the things we want you to be set up for success, that is what it's all about. It's also about some financial education as well, learning things along the way and making your situation better than it is now. Uh, sad kind of a reality, though, for the country right now is there is a new study, Mike, that sort of confirms what we have known here anyway for a while. And that's financial literacy is really lacking here in the US.

Speaker3:
I mean, it's abysmal. I mean, it really is. The fact of the matter is, is that, you know, kids growing up today are so far beyond the eight ball. Uh, and when I say kids, I'm talking really anybody 40 and under, uh, are so far be behind the eight ball comparatively speaking, to generations past. And that's backed up by a recent survey from the World Economic Forum. It says that financial literacy is lacking among adults, and it's not just in the United States. It's also in Europe as well. So in the United States, only about 50% of adults, half. All right, have a good understanding of personal finance. And that's a 2% drop from just the past two years, which is unacceptable. Okay. And the EU, Europe, the European Union, they're also underperforming in that lack of financial literacy folks. It's concerning because what inevitably does is leads to poor financial decision making and and honestly a false sense of confidence. And so to address this issue, many experts recommend implementing financial education in schools. I'm one of those folks, okay. And creating learning platforms that helps improve financial literacy.

Speaker5:
Yeah, we've been talking.

Speaker2:
Um, to at least. Previously on the show. It's been a while, but about some of those states that are now requiring financial education in schools, which is a great thing. At least it's headed in the right direction. The question is, okay, how much financial education is required? Is it actually enough, or is it just, you know, here's, uh, here's what a bank statement looks like. Okay. You've got your financial education. That's great kids. You know, like what? Where does it fall along that sort of scale? Um, but at least at the very least, more and more states are requiring it, which is obviously a very good thing.

Speaker3:
It is. I think it was a little less than half, uh, if I remember correctly, it was around 20, either 19 or 21 states. I don't know why those numbers are sticking in my head, but, you know, like you said, Matt, that's a good start. It needs to be mandated that all 50 states. Right. And, you know, the survey that I was just alluding to, it also revealed that comprehension of financial risk is particularly low among adults, and that that is extremely problematic as the world of finance is constantly changing and being able to navigate risk. Guess what? Well, that's a crucial skill. And additionally, with the global economy struggling and more and more people living longer and longer and longer than ever, retirement planning and understanding how to make money stretch further is becoming increasingly important. And that survey suggested that financial education should be a continuous journey, as again, the world changes and the financial landscape changes, and having that knowledge needs to keep up.

Speaker5:
Yeah, as.

Speaker2:
As the world turns, things need to, uh, you got it. You got to keep up with things. Because as the world turns, things change all the time, especially in the financial landscape here. And the thing is, you know, folks, if you do have questions about your particular financial situation, we want to put you in touch with Mike Zeno for that complimentary consultation we were talking about a few minutes ago. He can analyze your current situation, come up with a plan tailored to meet your specific needs and your wants. It's complimentary. No obligation, as I said, and you only work with Mike if it is best for you. So you can just go to the website. It is Money Matters with mike.com or call the number (704) 560-1573. That's 704560 1573. All right Mike. So some more financial education here for our listeners today. You know we're not going to just be uh, people who are who complain about the fact that there is a lack of financial knowledge and education here in the country. We're going to work to change it on the airwaves. And that's what we're doing right now, because we have five steps for you, our listeners, to master your cash flow and create a budget. Now, listen, not budgeting. That was number one on our earlier list for a reason, right? It was, you know, that, uh, list of things that you are have a bad habit of that cost you thousands every month. Not having a budget was number one. And and there's a good reason for that definitely is.

Speaker3:
Right. So step one is going to be to assess your financial landscape. All right. Figure out where you stand. Gather all of your relevant financial information, including all of your income sources, all of your expenses, all of your debts, and all of your savings. Take note of any irregular income sources. Uh, you know, so if you sell stuff online every once in a while, um, that could be something that you can't necessarily count on, and then any other significant financial obligations that you may have. And understand that your current financial standing starts with creating this household balance sheet that will serve as your solid foundation for your budget, for your spending plan, to set you up for much more success down the road.

Speaker2:
Yeah, 100%. You got to know where you are if you want to know where you're going, right, you got to have that starting point. So that is it in step one. So step two then Mike is to set clear financial goals.

Speaker3:
Yeah I mean folks need to reflect. Take a minute spend some time just in quiet and decide, you know, what are your short term goals. What are your mid-range goals. What are those long term aspirations? What exactly is it that you want to achieve and define specific financial goals that have measurable amounts, as well as measurable and quantifiable timelines? Give yourself a deadline almost right. Goals can include saving for emergencies and getting that emergency fund where it really needs to be. And I like to have anywhere between 6 to 12 months. Okay. Uh, paying off that high interest revolving debt. Or just investing for the future and your retirement down the road.

Speaker2:
Yeah, put your money to work for you. You know you've worked hard to earn it, so put it to work hard for you and for your future. And again, that's what's one of those things. Future you will thank you for that. Step number three here to master your cash flow and create a budget is to track and categorize your expenses.

Speaker3:
Yes, I've we've said this a lot, right? No. Trying to figure out where every single penny that you spend is being spent keeping track of your expenses diligently for at least one month. I like it to. I like folks to do it for three months. Right? But that's kind of tedious. But if you can do at least 30 days, it's going to be a wake up call for most of you. Categorize all of your expenses into very broad categories such, you know, these expenses fall under housing, these expenses fall under transportation, groceries, entertainment, whatever it is. Right? Just categorize those and then identify any patterns and areas where you can potentially make some tweaks, make some adjustments to be able to save a little bit more.

Speaker5:
Yeah.

Speaker2:
And that will really help because that adds up. You know, if you save just a little bit more, the little bits add up to a lot of bits over time. Uh step number four here. Allocate your income. And so it's like, you know we've been talking about what's, what's going out. Well here here we go with what comes in your income and how that is then allocated across all the different things that you need to pay for.

Speaker3:
Yeah no doubt. And the first thing that I'm going to tell you to allocate for is put a specific portion of your income towards your defined financial goals. In other words, your savings and investments pay yourself first, okay. And then after that, prioritize your essential needs first, such as housing, utilities, groceries and debt payments. That's the second thing you want to do. And then lastly, you want to be able to set aside a designated amount for discretionary spending while you're able to maintain balance. People ask me all the time, Mike, how do you and Carrie, that's my wife. How do y'all travel as much as you do? And the fact of the matter is, is that, you know what? We budget for it. So every time we get paid, a portion of that goes, I mean, it's a small portion, but it goes into a travel expense account so that we can afford to go and enjoy vacations.

Speaker2:
And that's a very smart thing to do if you like to be a jet setter and go across, I mean, you know, Mike, uh, and his family just took this great European trip last year that I was extremely jealous of, and I'm not bitter about it at all. Um, no. They took this great European vacation last year, and and it's, you know, we did it because we saved the money for it. We we actually have that set aside for that specific purpose. And so if you do that, if you plan all everything that really that boils down to is having a plan, uh, whether it's short term, long term, whatever. Um, you just got a plan. Because if you fail to plan, you plan to fail. Right?

Speaker3:
And that leads into step five, Matt, which is work your plan, but review it regularly and adjust it as needed. So by frequently checking in on your spending plan, you're able to ensure that it aligns with both your goals as well as those financial circumstances that you've set up for yourself. I. It also helps you identify areas for improvement in order to make the necessary adjustments. And so make sure that you're able to adapt your spending plan as your life evolves, embracing new opportunities as well as new challenges, and following each and every single one of those five steps will help you gain a much clearer understanding about your finances. It'll help you set much more meaningful goals, and make more informed decisions that are going to enable you to achieve financial stability and the ability to pursue your aspirations in retirement.

Speaker2:
And if you need help along any of those lines, folks, whether it's, you know, coming up with a budget for yourself where you can actually prioritize paying yourself first. As Mike said, that should be the number one priority here. Um, if you want to help along that path, if you want to come up with a retirement plan that's based on your specific financial situation and your needs, your wants, your desires, especially those desires for your retirement years, then I encourage you to reach out to Mike Zeno. You can do that once again on Money Matters with mike.com. That's Money Matters with mike.com or call (704) 560-1573. And uh, we we've gotten into this habit every week, Mike, of checking in on our national debt, not just talking about personal debt here, but a much bigger number of our national debt. And it continues to grow each and every week. And it's this, uh, information, by the way, is from. Us debt clock. Org.

Speaker3:
Yeah. If you guys ever were to go to US debt clock.org. Um, it might just absolutely blow you away with how fast those gerbils are spinning that wheel. Okay, we checked on this earlier this week, and we were at $34.71 trillion. Okay. And then I just checked on it right before the show. And we are at $34.72 trillion. And what does that mean? That means that we've spent $10 billion just in debt. That's interest on our debt, folks. $10 billion in, what, five days? Okay. And why does this matter? Well, people don't realize how big of a number a trillion actually is. Um, and if you write down a number, then follow it by 12 zeros. Okay. That it is an enormous, um, enormous amount of money. And I've used this analogy before, but if you go back in time 1,000,000 seconds ago, that was only 11 days. Okay. If you go back in time 1,000,000,000 seconds ago, that was 32 years. So there's a big jump between million and billion. But then if you change the B to a T and go back in time, 1,000,000,000,000 seconds, um, Neanderthals, dinosaurs still roam the Earth. We're talking about, um, 32,000 BC. So that's a long time ago. And when our debt just keeps racking up and racking up, um, how is that going to impact our future? Well, I'll tell you, number one, Social Security and Medicare, okay? The national debt can impact the sustainability of those social safety net programs like Social Security, like Medicare, which are crucial for both pre-retirees and retirees. A high national debt is going to strain those programs, potentially leading to reduced benefit or increased eligibility requirements. They've been talking about making the beginning age for Social Security instead of 62 age 70. Matt, what do you think about that?

Speaker2:
Wow. I mean, yeah, it's, um, quite a big change that that has been thrown around there. There's quite a big, uh, change in potential benefits, uh, coming as well, if nothing is done because you're going to see a big reduction in the payouts to beneficiaries, uh, if nothing gets done, because there's just not going to be the money in the trust funds to be able to make those payments. It can be a scary situation for people who are approaching their retirement years right now. Mike.

Speaker3:
It can I think Medicare I think was uh, was due to be, you know, basically bankrupt by the year 2031 and then Social Security by the year 2033 if nothing happens. And so we're already halfway through almost 2024. So we're talking about what, seven years, nine years away for both of those, um, you know, social safety net programs to reach, um, critical mass and potentially devastating that, you know, millions of, of Americans do I believe that's going to happen? I don't okay, I don't believe that at all. I do not believe that our government is going to let those programs fail. It would be it would cause a global financial catastrophe, not just here in the United States. So but something definitely needs to be done about it. And you, each and every single one of our listeners have a voice. So contact your congressman, contact your senators, write your House of Representatives people and speak up. Let them know what's important to you. Because if you don't do that, you can't blame the folks in Washington when you didn't vote. You know, just speak up.

Speaker2:
Yeah. Or vote as you were going to say there as well. You know, it's you got to do that. That's the other way of making our voices heard, rather that, you know, we can speak up, of course, which is an effective way. Let people know, let our elected representatives know what we think and feel and believe and all of that. And then we can also vote at, uh, at the old voting booth each and every time, uh, in the fall, whether it's the fall or the spring or whenever, you know, if you have local elections, a lot of times those happen in different months than the fall months. Um, but yeah, do that. Let your voice be heard. And, um, it's definitely our, our civic duty, uh, to do that, particularly if you are concerned about the health of our safety net programs like Social Security, like Medicare. Um, and especially if you're getting close to or you're just in those retirement years.

Speaker3:
Yeah. I mean, if you're in the retirement red zone, meaning that you plan to retire in the next five years or you have just retired in the past five years, then I'm just going to go out on a limb and say that both Social Security and Medicare are pretty dadgum important to you. Okay, so, you know, if you want to pick up a phone and give me a call, I can help strengthen your financial plan to where you're not dependent on Social Security, you're not dependent on Medicare. And because you're in that retirement. Zone. You cannot afford to lose too much during those years, which means that protection as well as growth is key, right? So just think back to folks who may have retired in 2007. Back then, that was the height of the market. And then what happened? Well, 2008 happened in the markets, lost 2008, 2009 and the beginning of 2010 before they saw a rebound. So those folks, their money was stressed to the point that it will never last as long as somebody who retired in 2010 and then saw the longest bull run in the history of the United States stock market. So that risk is called sequence of returns risk. And if you want to learn how to avoid that, as well as strengthening your financial plan. So you know, because you're in the retirement red zone, then just contact me (704) 560-1573 or go to the website at Money Matters with Mike comm.

Speaker5:
It's this week in history.

Speaker2:
A lot of a lot of birthdays to get to here in this week in history. This time around Mike. And the first one we start with is on May 12th. Who, uh, who was born this day in 1937? Well, it was stand up comedian, actor and author George Carlin being born, uh, one of the most influential comics of his generation. Really. He always really talked about a lot about politics, a lot about psychology, religion as well. I feel like if you, um, watched George Carlin or listen to George Carlin and you weren't at least slightly offended by something that he had to say, you probably weren't listening close enough.

Speaker3:
Now, George Carlin, honestly, he is by far one of my top five comedians of all times. I'd probably put him up there in the top three. I just love to listening to him and may he forever rest in peace, right? Uh, on May 13th, uh, in the year 1950, American singer and songwriter Stevie Wonder was born, and he was influential in paving the way for musicians across a range of genres, from rhythm and blues to pop to soul and gospel. And he became one of the best selling music artists of all time, with sales over 100 million worldwide, and actually has won over 20 or, excuse me, 25, uh, Grammy Awards throughout his career.

Speaker2:
Yeah, they don't make them like Stevie Wonder every day. I'll tell you that. May 14th, the birthday, uh, George Lucas, the producer, screenwriter, entrepreneur, uh, George Lucas, he was born 1944 on May 14th, of course, best known for creating Star Wars and Indiana Jones and a little, uh, film that he would probably like to forget called Howard the Duck. Uh, which was not the greatest, uh, George Lucas creation of all time. But but, you know, Star Wars and Indiana Jones, we'll leave it with those. And then on May 15th, a historic moment on this date, 1928, legendary Disney character, the symbol of the Walt Disney Company for for generations now, Mickey Mouse was created, of course, by Walt Disney himself. So big time there. And, Mike, I know that you had a big, uh, date to remember on May 15th for a very important reason as well.

Speaker3:
Yes, yes. You know, my brother Joel was born May 15th in 1981. There's actually a ten year difference between he and I. But, Joel, I just wanted to wish you a happy birthday coming up this Wednesday. Happy birthday.

Speaker5:
Brother.

Speaker2:
Yes, definitely. Happy birthday to you. Uh, Joel. And anybody celebrating birthdays as well really do appreciate you listening to the show and being a part of things. And as always, Mike, I appreciate you and all that you bring to the show every week. That'll do it for this time around. But we'll, uh, gear up for another big episode next week.

Speaker5:
Absolutely.

Speaker3:
Everybody out there in listener land. Thank you so much for tuning in religiously each and every single week. Without you guys, we don't have a show. So thank you from the bottom of my and Matt's hearts. Whatever you're doing this weekend, I hope you enjoy it to its fullest extent and as always, make it a great day.

Speaker1:
Thanks for listening to Money Matters with Mike. You deserve to work with a licensed financial and insurance professional who can offer strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit Money Matters with mike.com or pick up the phone and call 704 560 1573. That's 704 5601573 not affiliated with the United States government. Mike Zeno does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific. All copyrights and trademarks are the property of their respective owners. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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